Final Report

HAILEY COLLEGE OF BANKING & FINANCE, PU Internship
Report
INTRODCTION
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Mission Statement
“Achieving business excellence by catering to the financial requirements of the rural
community at grass root level through quality provision of services and infusing
values of cooperation in a conducive supportive environment”
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Profile of the Bank
Establishment:
Cooperation is an International Movement of enriched history spread over decades. It has
proved as an effective system for socio-economic growth and community development of
the rural masses. This movement is very strong in many countries like India, China,
Malaysia, Europe, Japan, Philippines etc.
Initially, Cooperative Banking was organized in the Indo-Pak Subcontinent in three tiers:
Primary Societies were at the base, Central Bank / Banking Union were at the secondary
level; and Provincial Bank / Apex Society was at the top.
The Central Cooperative Banks (CCB) was established at each District / Tehsil and
Punjab Provincial Cooperative Bank Ltd. in 1924 as an Apex Bank to meet funding
requirements of cooperative societies and Central Cooperative Banks, respectively.
Punjab Provincial Cooperative Bank Ltd / Central Cooperative Banks were engaged in all
types of banking & credit business with societies and individuals who were their
members.
The PPCBL gained the status of Scheduled Bank in 1955.
PPCBL was organized and being managed on the principal of voluntary and open
membership, democratic member control, member economic participation, autonomy,
independence, self-help and mutual cooperation.
Major Objectives of the Bank
o Promote growth of the Cooperative movement.
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o Carry on banking and credit business to facilitate working of the member Cooperative
Societies.
o accept deposits of money and other funds from the public, repayable on
demand or otherwise, and withdrawal by cheque, drafts, order or otherwise,
for the purpose of lending or investment;
o borrow or raise money;
o lend or advance money either upon or without security to member societies
and any other person in such manner as may be necessary;
o serve as a balancing centre for cooperative societies in its area of
operations;
o take measures designed to improve the working and thereby the usefulness
of the member societies;
o inspect, supervise and estimate credit of member societies and any other
person;
o purchase, sell, transfer, endorse, pledge or otherwise negotiate securities of
the Government, Government of Pakistan, promissory notes, bonds,
municipal and port trusts bonds, debentures, shares and other securities
specified under section 37 of the Act for legitimate investment of surplus
funds of the Bank or for the members or depositors without incurring any
financial responsibility and to draw return thereon and to do other things
incidental to such business;
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o act as agents for the Government or public bodies or member societies and
their members or any other bank with the previous sanction of the
Registrar;
o receive for safe custody securities, documents and ornaments upon such
terms as may be fixed by the Board of Directors or any office-bears or
officers authorized by the Board of Directors;
o establish, support, or aid in establishment funds, trusts and conveniences
calculated to benefit employees or ex-employees of the Bank or the
dependents and grant pensions;
o advance loans and overdrafts to the members of the staff of the Bank,
against sufficient securities acceptable to the Bank, in accordance with the
rules framed in this behalf by the Bank and approved by the Registrar;
o grant loans and overdrafts to depositors of the Bank against their fixed
deposits;
o acquire, sell, mortgage or lease lands and buildings, and build structures,
godowns and houses for its own use or for those of its member societies;
o manage, sell and realize any property which may come into the possession
of the bank in satisfaction or part satisfaction of any of its claims;
o provide educational assistance and training to members of the member socie-
ties or staff of the Bank or of the member societies;
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o afford financial assistance including donations to co-operative societies and
institutions engaged in promoting the cause of co-operative movement and
co-operative education and training;
o open branches, sub-branches, sales & service centers and booths and to
transact business, with the permission of the regulators, so as to provide
banking services to the public;
o grant and issue letters of credit and travelers’ cheques;
o collect and transmit money and securities;
o negotiate loans and advances;
o carry on and transact every kind of guarantee and indemnity business;
o use computer or other electronic systems or delivery channels for banking
products and services;
o enter into participation arrangement(s) with any other bank or banks or
financial institutions with the object of making loans and advances;
o acquire, manage and undertake the whole or part of business of any other
cooperative society;
o help the growth of the co-operative movement; and
Membership:
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The following shall be members of the Bank−
(a) cooperative societies admitted as members in accordance with these bye-laws;
(b) Registrar and two non-official professionals nominated by the Registrar without
holding shares or incurring any liability;
(c) Government; on such terms and conditions as the Board of Directors may accept for
admitting it as member but it shall have representatives as provided in clause (b)
above; and
(d) President; without holding shares or incurring any liability.
1. General Body.− (1) Subject to the provisions of the Act and rules, the
supreme authority of the Bank shall vest in the General Body.
(2) The General Body shall consist of:
(a) ex-officio members of the Bank;
(b) nominated professional members of the Bank; and
(c) District delegates elected in the district meetings of
member societies.
2. Board of Directors.− (1) The Board of Directors shall consist of−
(a) Registrar, who shall be its Chairman;
(b) President;
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(c) two non-official professionals nominated by the Registrar under bye-
law 6(b); and
(d) Three elected a member, who is qualified to be elected as Director
under the election rules.
(2) Powers and duties of the Board of Directors.− (1) The general
superintendence and direction of the affairs and business of the Bank and overall policy
making in respect of its operations shall vest in the Board of Directors which may
exercise all such powers and do all such acts, deeds and things which are in the interest,
welfare and promotion of the Bank.
(2) The powers and duties of the Board of Directors shall be−
(a) to approve and monitor the objectives, strategies and overall
business plans and to oversee that the affairs of the Bank are
carried out prudently within the framework of Act, rules, these
bye-laws and other relevant applicable laws;
(b) to supervise the maintenance of accounts of all moneys received and
paid;
(c) to allow opening of accounts in the name of the Bank with the State
Bank of Pakistan or such other banks or financial institutions
subject to the approval of the Registrar;
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(d) to supervise the maintenance of account of the assets and liabilities
of the Bank;
(e) to approve and ensure implementation of policies, including but not
limited to, in areas of risk management, credit, treasury &
investment, internal control system and audit, information
technology security, human resource, expenditure, accounting &
disclosure, and any other operational area which the Board of
Directors may deem appropriate;
(f) to supervise the maintenance of up to date record of member
societies;
(g) to consider applications for membership, allotment and transfer of
shares;
(h) to fix limits for advances and guarantees to various member societies
and individuals with the general permission of the Registrar;
(i) to prepare annual budget of the Bank for approval of General
Meeting;
(j) to decide the terms, periods and the rates of mark-up at which loans
and guarantees are to be given and to arrange for the recovery of
loans and guarantees and mark-up;
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(k) to allow acceptance of deposit of all kinds and types, and to decide
the terms, period and the rates of mark-up at which deposits are to
be received and to arrange for their payment or return of deposits;
(l) to enter into arrangements for the raising of loans, to enhance other
capital as resolved in General Meeting and to pledge the Bank’s
assets for such purposes;
(m) to institute, conduct, defend, compromise, refer to arbitration or
abandon legal proceedings by or against the Bank or its committee
or officers or employees, concerning the affairs of the Bank,
through any member or officer or employee of the Bank;
(n) to examine the accounts and to sanction requisite expenditure;
(o) to summon General Meeting under bye-law 15;
(p) to facilitate annual audit and to prepare and submit to the General
Meeting the annual report and audited balance-sheet;
(q) to appoint, subject to the recommendation of the President,
management executives and other staff as may be considered
necessary for the conduct of Bank’s business;
(r) to fix the salaries, total strength and terms of service of the staff of
the Bank;
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(s) to form committees with well-defined objectives, authorities and
tenure on its behalf;
(t) to ensure existence of an effective Management Information System
to remain fully conversant of the activities, operating performance
and financial condition of the Bank, the environment in which it
operates, the various risks it is exposed to and to evaluate
performance of the management of the Bank at regular intervals;
(u) to purchase, sell, transfer, endorse, pledge or otherwise negotiate
securities of the Government, Government of Pakistan, promissory
notes, bonds, securities, debentures, shares and other securities
specified under section 37 of the Act for legitimate investment of
surplus funds of the Bank and to draw return thereon and to do
other things incidental to such business;
(v) to fix terms and conditions, to receive for safe custody and to re-
pledge securities and other valuable and to authorize any office
bearers or officers of the Bank in this behalf;
(w) to lay the procedure and manner in which the capital of the Bank
may be increased or reduced;
(x) to decide the terms, period and the rates of mark-up at which loans
and advances to staff are to be made and recovered and to frame
rules in this behalf subject to the approval of the Registrar;
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(y) to grant loans and overdrafts to depositors of the Bank against their
fixed deposits;
(z) to sanction financial assistance including donation to Cooperative
Societies and Institutions engaged in promoting cause of
Cooperative Movement and Cooperative Training and Education;
(za) to draw, accept, endorse, discount, buy, sell bills of exchange and
other instruments;
(zb) to buy, acquire, hire, lease or sell lands and buildings to build
structures, godowns and houses for its own use or those of its
member societies;
(zc) to ensure that the work of the Bank is carried out in accordance with
its objects and to exercise such powers or take appropriate actions;
(zd) to hear appeals against the orders and decision of the management of
the Bank or the authorities or committees;
(ze) to grant power-of-attorney to any responsible officer of the Bank;
(zf) to appoint the President for efficient conduct of Bank’s business,
who meets all the qualifications prescribed for a Director under the
election rules, for a term not less than two years on such terms and
conditions specifically prescribed for the post on the
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recommendation of the Registrar and to approve service contract
of the person so appointed;
(zg) to approve powers and duties of the President and to periodically
review the performance of the Bank;
(zh) to frame subsidiary rules or policies relating to the affairs of the
Bank;
(zi) the Board of Directors shall prudently conduct affairs of the Bank
and shall be responsible for any loss caused by negligence or any
willful act;
(zj) to decide the terms of purchase and sale of agricultural and industrial
requirements and produce;
(zk) to arrange for internal audit, external audit and to facilitate State
Bank of Pakistan in inspection of the Bank;
(zl) to arrange compliance of internal audit, external audit or State Bank
of Pakistan’s inspection reports;
(zm) to frame and amend service rules of the employees of the Bank to
govern, administer and regulate their services, subject to the
approval of the Registrar;
(zn) to approve and decide matters of urgent importance in the absence of
the General Meeting;
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(zo) to allow opening of branches, sub-branches, sales & service centers
and booths;
(zp) to enter into participation arrangement(s) with any other bank or
banks or financial institutions with the object of making loans and
advances;
(zq) to acquire, manage and undertake the whole or part of business of
any other cooperative society;
(zr) to consider payment of compensation, advance rent or long-term
advance with or without security for the purpose of securing
premises of the Bank’s offices on lease or tenancy basis;
(zs) to approve agency arrangements and to decide terms and conditions
thereof; and
(zt) To establish and support the provident fund scheme for the benefit of
employees.
3. Management of the Bank.− Under the overall supervision, control and
administration of the President, the management of the Bank shall run day-to-day affairs
and operations of the Bank strictly in accordance with the objectives, strategies, plans,
rules, policies and regulations approved by the General Body or the Board of Directors,
the Act, rules and regulations or instructions of the State Bank of Pakistan.
Governing Body of the Bank:
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The supreme authority of the Bank is General Body represented by all the shareholders
through 660 delegates, elected at the rate of 1 per 50 shareholders. The general
management of the Bank is subject to the control of elected Board of Directors.
Ownership:
PPCBL has a unique status being a ‘peoples’ bank and is owned by around 33,000
cooperative societies, mostly the agricultural thrift and credit cooperative societies
(Shareholding pattern: GoPb 3% and Cooperative Societies 97%).
Banking Functions:
It is performing all the main banking functions of deposit mobilization, supply of credit
and provision of remittance facilities with limited banking products and functionally
specialists in agriculture related products. PPCBL, as a principle, does not pursue the goal
of profit maximization.
It has strong linkages with rural agricultural economy. There exists strong nexus between
Bank and Cooperative Movement / Department. Thus PPCBL has been the main pillar of
Cooperative Movement having a history of over 80 years playing a pivotal role with its
service oriented approach.
Source of Funding:
In 1976, Federal Bank for Cooperatives (FBC) was established through a central
enactment whereby all the Central Cooperative Banks dissolved and merged into PPCBL.
Thereafter, the FBC provided funding to meet the crop loan requirements of the small
farmers on service charge basis ranging between 2-3% only.
In the year 2002, Federal Bank for Cooperatives was placed under liquidation. After that
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the State Bank of Pakistan (SBP) started providing funding support to PPCBL through its
Agricultural Credit Portfolio. The funding remunerated at GOP T. Bills Rate ranging
between 8-9%. However, the funding support was withdrawn by the SBP w.e.f.
01.07.2007 due to change in its monetary policy. Thereafter, the Bank is managing its
business operations through refinancing of recoveries from own sources.
Branch Network:
The Bank has an extensive network of 159 branches servicing the small farmers. It is the
only surviving Cooperative Bank in the four Provinces being a Specialized Scheduled
Cooperative Bank.
Regulation & Control:
Being Scheduled Bank, PPCBL falls under the regulatory control of SBP and bound to
follow SBP Prudential Regulations to the extent applicable. Being Cooperative Bank, it
functions under the supervision of Registrar Cooperative, Societies, Punjab.
Current Challenges:
 Liquidity problems due to withdrawal of credit line by SBP
 Rightsizing of Board of Directors
 Weak system and procedures
 Lack of I.T. infrastructure
 Recovery of overdue loans
 Sustaining operating losses mainly due to high cost debt servicing to SBP
 HR Development issues
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Restructuring:
Currently, an extensive restructuring exercise has been undertaken to make the PPCBL a
viable and self sustained Bank for rural masses. For this purpose, a 5-Years Restructuring
Plan was prepared and submitted to State Bank of Pakistan (copy attached). Reform
initiatives taken so far as under:
• Organizational Structure revamped
• A full time Managing Director / COO appointed
• Board of Directors right-sized (now consists of 7 members instead of 40)
• Credit, Audit, Operations and Risk Management Manuals prepared
• Audit & Inspection Cells at Zonal Offices Shifted to Head Office and
reorganized in 4 Teams
• Automation of systems & procedures initiated
• Surplus staff lay off and induction of qualified professionals – process
initiated.
Market Positioning:
 Strong clientele base earned over 85-years.
 Deep rooted penetration / bearing in agriculture community.
 Extensive Branch Network at grass root level.
 Catering to financial requirements of around 0.3 million small farmers of members societies
and individual borrowers in a year.
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 Lending products launched without large scale publicity–immediately responded by the target
group.
 Allocated funds often fall short in meeting demands of the borrowers.
MANAGEMENT
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Mr. Liaqat Durrani
President
• M. A. Economics
• L. L. B
Amir Zahoor Khan
Excutive Vice President
• Masters in Business Administration
University of North West, USA
• Bachelor of Business Administration
University of San - Francesco
CHABOT
SAMUEL JAMES
Senior Vice President – Chief Financial Officer
• 2003 FCA, Fellow Member of the Institute of Chartered Accountants of Pakistan.
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• 1993 ACA, Associate Member of The Institute of Chartered Accounts of
Pakistan.
• 1984 B.Com, Hailey College of Commerce (University of the Punjab) Lahore –
Pakistan
BOARD OF DIRECTORS
Existing Composition of BOD:
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HAILEY COLLEGE OF BANKING & FINANCE, PU
Internship Report
Proposed Composition of BOD:

o Registrar, Cooperative Societies, (1) Chairman and ex-officio President of
Punjab the Bank.
o Chief Auditor, Cooperative (1) Member
Societies, Punjab
o Three non-official Cooperators (3) Members
nominated by the Registrar
o One elected member for each (34) Members
district
Registrar Cooperative Societies 1 Chairman
President / Chief Executive Officer, PPCBL 1 Member
Three elected members amongst the share holders,
one each from:
(i) Lahore and Multan Zones 1 Member
(ii) Gujranwala, Faisalabad and Rawalpindi Zones 1 Member
(iii) Sargodha, D.G.Khan and Bahawalpur Zones 1 Member

Two professional / technocrats nominated by the2 Member
Registrar
Total: 7
The Role of the President:
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o The President / CEO shall supervise general management and
administration of the affairs and business of the Bank in accordance with
the objectives, strategies, plans, rules, policies and regulations approved by
the General Body or the Board of Directors;
o To oversee Administrative functions.
o To ensure banking operating procedures are developed and implemented.
o To improve organizational structure of the bank in the best interest of the
bank.
o To supervise the recruitment and efficient control on the Human Resource.
o To ensure the performance of management, training and development
process of all the departments in the bank.
o To set performance targets, monitor and provide guidance for development
of banking activities.
o To prepare and develop policies surrounding investment, loan and interest
reserve policies according to the best practices in vogue.
o To communicate with the regulators.
o To represent the bank in all forums.
o To supervise and plan for the budgets and financial activities of the Bank.
o To supervise any other affairs of the bank
The Role of the Executive Vice President:
Predominantly dealing with the Assets, Liability and Operational aspects
of the Bank and monitoring, strategizing and controlling the business
needs/requirements and assigned targets.
Strategic Role:
o New business development
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o Brand Building Strategies
o Identification and segregation of potential Market Segments
o Revenue generation through new account development and key
account manageme
Operational Role:
• Responsible for achieving sales target
• Defining the exact marketing processes and responsible for executing
the same.
• Developing relevant business proposals
• Monitor market Intelligence within the industry in terms of market
development, new projects, competitive activity, new customers etc.
• Handling meeting with key clients
• Provide necessary training to sales team as and when needed
(C) Organizational Role:
• To enhance organizational effectiveness through setting up
appropriate marketing strategies
• Consistent follow-through and resourcefulness, in order to achieve
organizational goals and objectives
The Role of BOD:
The general superintendence and direction of the affairs and business of the Bank and
overall policy making in respect of its operations have been vested in the Board of
Directors which may exercise all such powers and do all such acts, deeds and things
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in the interest, welfare and promotion of the Bank. The powers and duties of the
Board of Directors to run the affairs of the Bank are:-
1. To approve and monitor the objectives, strategies and overall business plans
and to oversee that the affairs of the Bank are carried out prudently within the
framework of Cooperative Societies Act, 1925, the Rules framed there under,
these Bye-laws, prudential regulations of SBP and other laws to the extent
applicable.
2. To supervise the maintenance of accounts of all moneys received and paid;
3. To allow opening of accounts in the name of the Bank with the State Bank of
Pakistan or such other Banks / institutions subject to the approval of President;
4. To approve and ensure implementation of policies, including but not limited
to, in areas of Risk Management, Credit, Treasury & Investment, Internal
Control System and Audit, IT Security, Human Resource, Expenditure,
Accounting & Disclosure, and any other operational area which the Board
and/or the Management may deem appropriate from time to time, and to
review and update them periodically or whenever it is desirable;
5. To supervise the maintenance of up to date record of members;
6. To issue new shares and to confirm transfer of shares;
7. To fix limits for advances and guarantees to various member societies and
individuals with the general permission of the Registrar;
a) To prepare annual budget of the Bank for approval of General
Meeting;
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8. To decide the terms / periods and the rates of mark-up at which loans and
guarantees are to be given and to arrange for the recovery of loans and
guarantees and mark-up;
9. To decide the terms / period and the rates of mark-up at which deposits are to
be received and to arrange for their payment or return of deposits and to grant
loans and overdrafts to depositors of the Bank;
10. To enter into arrangements for the raising of loans, to enhance other capital as
resolved in General Meeting and to pledge the Bank’s assets for such
purposes;
11. To institute, conduct, defend, compromise refer to arbitration or abandon legal
proceedings by or against the Bank or its committee or officers or employees,
concerning the affairs of the Bank, through any member or officer or
employees of the Bank.
12. To examine the accounts and to sanction requisite expenditure;
13. To summon General Meeting under byelaws No.19;
14. To facilitate annual audit and to prepare and submit to the General Meeting
the annual report and audited balance-sheet.
15. To appoint, subject to the recommendation of the President, Management
Executives as may be considered necessary for the conduct of Bank’s
business;
16. To form committees with well-defined objectives, authorities and tenure on its
behalf;
17. To ensure existence of an effective ‘Management Information System’ to
remain fully conversant of the activities, operating performance and financial
condition of the Bank, the environment in which it operates, the various risks
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it is exposed to and to evaluate performance of the Management at regular
intervals;
18. To purchase, sell, transfer, endorse, pledge or otherwise negotiate securities of
Government of Pakistan, and Provincial Government, Promissory Notes,
Bonds, Securities, debentures, shares and other securities specified under
Section 37 of the Cooperative Societies Act 1925 for legitimate investment of
surplus funds of the Bank and to draw return thereon and to do other things
incidental to such business;
19. To fix terms and conditions to receive for safe custody and to re-pledge
securities and other valuable and to authorize any office bearers or officers of
the Bank in this behalf.
20. To determine terms and conditions of commission to act as agent for the
member Cooperatives Societies.
21. To decide the terms / period and the rates of mark-up at which loans and
advances to staff members are to be made and recovered and to frame rules in
this behalf subject to the approval of the Registrar;
22. To approve and decide matters of urgent importance in the absence of the
general meeting;
23. To sanction financial assistance including donation to Cooperative Societies
and Institutions engaged in promoting cause of Cooperative movement and
Cooperative Training and Education.
24. To draw, accept, endorse, discount, buy, sell bills of exchange, and other
instruments.
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25. To buy, acquire, hire, lease or sell lands and buildings, to build structures,
godowns and houses for its own use or those of its Member Cooperative
Societies.
26. To ensure that the work of the Bank is carried out in accordance with its
objects and to exercise such powers or take appropriate actions;
27. To hear appeals against the orders and decision of the Management or the
Authorities / Committees;
28. To grant power-of-attorney to any responsible officer of the Bank;
29. a) To appoint President/Chief Executive Officer of the Bank, who meets Fit
and roper Test criteria of the State Bank of Pakistan for a period not less than
two years on such terms and conditions specifically prescribed for the
post on the recommendation of the Registrar Cooperatives and to execute
service contract with the person so appointed;
30. b) The President / CEO shall supervise general management and
administration of the affairs and business of the Bank in accordance with
the objectives, strategies, plans, rules, policies and regulations approved by the
General Body or the Board of Directors;
31. a) To frame subsidiary rules / policies for the affairs of the Bank;
32. The Board of Directors shall prudently conduct affairs of the Bank and shall
be responsible for any loss caused by negligence or any willful act;
33. a) To arrange for Internal Audit, External Audit and to facilitate SBP
Inspection of the Bank;
34. b) To arrange compliance of Internal Audit, External Audit or SBP Inspection
Reports; To arrange for internal audit of the Bank as well as its branches for
which a separate cell may be created;
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35. To frame and amend service rules of the employees of the Bank to govern,
administer and regulate their services, subject to the approval of the Registrar;
36. To lay the procedure and manner in which the capital of the Bank may be
increased or reduced.
Bank Structure
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O R G A N I Z A T I O –NH EC AHDA RO TF F IC E L E V E L
B o a r d o f D ire c to rs
B o a r d S u b C o m m it t e e S e c r e ta r y
o f A u d it BOD
P re s id e n t / C E O
H ead
A u d it
H ead H ead S A M
H e a d B u s in e sC s .F . O Head O p e ra tio n s & L e g a l H e a d In t e r n a l
D e v e lo p m e n t C .R . M .D / I.T H ead H R C o n tro l &
& CAD C o m p lia n c e
D e p u ty H e a dD e p u t y H e a d D e p u t y H e a dD e p u ty H e a d
R e t a il B a n ki nRg e/ c o n c i l ia tDi oenp u t y H e a dO p e r a ti o n s D e p u ty H e a d
S .A .M A d m n . & E s Dtt.e p u ty H e a d
I n s ti t u ti on a l / C r e d i t R is k
C o rp o r a t e I n te r n a l C o n t r o l
B a n k in g D e p u t y H e a d
D e p u ty H e a d
A c c o u n t s D e p u t y H e a dD e p u ty H e a Dd e p u t y H e a dS ta f f B e n e fiDt e p u ty H e a d
C .A .D I . T.
D e p u ty H e a d Legal & Ta x e s C o m p lia n c e
C r e d i t & R e c o v e ry
D e p u ty H e a d D e p u ty H e a d
Tr e a s u r y D e py uH t e a d Tr a i n i n g C o m p l i a n c e
D iv i s i o n a l / Z o n a l E n g in e e r i n g &
H ead
O ffi c e r s
P r o p e r t ie s
(8 )
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PROPOSED ORGANIZATION CHART - DIVISIONAL LEVEL
Divisional /
Zonal Head
Deputy Zonal Head Deputy Zonal Head Deputy Zonal Head

(Operations & HR) (Credit & Recovery) (Statistics & Consolidation)
Computer Computer Computer

Officer (s) Operator
Branch Manager
Branch Structure
Branch
Manage
r
Officer
Supporting
Operation ACRO Cashier BDO
Staff
s
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Branches Network
Sr. No. Name of Zone No. of Branches

Lahore 24
Gujranwala 18
Rawalpindi 17
Sargodha 16
Faisalabad 18
Bahawalpur 17
Multan 28
D.G. Khan 20
STAFF STRENGTH AT HEAD OFFICE AS PER NEW ORGANOGRAM OF
THE BANK
Sr.NO. Category No. of Staff
1 Managing Director / COO 1

2 No. of Heads 8
3 No. of Deputy Heads 5
4 No. of Managers 36
5 No. of Supporting Staff 129
6 Chief Engineer 1
7 SPRO 1
Staff Strength of Divisional Zonal Office as per New Organogram of the Bank
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Sr.# Name of Name of Division No. of No. of No. of Total
Division Division al Zonal Deputy. Managers Supportin Strength
Head Heads g Staff
1 Bahawalpur 17 1 3 17 127 148

2 D.G Khan 19 1 3 19 151 174
3 Faisalabad 18 1 3 18 106 128
4 Gujranwala 18 1 3 18 126 148
5 Lahore 25 1 3 25 184 213
6 Multan 29 1 3 29 186 219
7 Sargodha 16 1 3 16 104 124
8 Rawalpindi 17 1 3 17 96 117
Total 159 8 24 159 1080 1271
DEPARTMENTS & OPERATIONS
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Treasury Department
1. Establish and maintain sound accounting and internal control discipline /
system within the department to ensure adequate, effective and prescribed by
the statutory bodies as well as the bank’s internal policies.
2. Supervise the process for timely preparation of final and interim financial
statements in accordance with the applicable financial reporting framework
and to present these financial statements to the Audit Committee / Board for
approval and onward publication and submission to the shareholders and
relevant statutory bodies.
3. Develop and supervise implementation of adequate systems and procedures to
generate and submit accurate and timely information to SBP in accordance
with the applicable regulation.
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4. Strategic business plans, budgets and forecasts and their submission to the
Board / Board Committee, Senior Management and the reporting of periodic
variations to the Board / Senior Management for effective monitoring at their
end.
5. Provide inputs on the capital structure of the bank and initiating / coordinating
various capital raising / restructuring initiatives along with seeking necessary
regulatory approvals.
6. Establish / direct tax strategies and accounting policies / procedures for the
bank and its subsidiaries.
7. Attend Board / Audit Committee meetings as Chief Financial Officer, as
required by the applicable regulations, Bank’s internal policies or established
practices.
8. Management, accounting, taxation and regulatory reporting.
9. To exercise independent check over the financial and regulatory reporting
processes and communicating identified exceptions to the concerned quarter
within the bank for resolution.
10. Perform other related functions that may be assigned by the Board / CEO from
time to time.
11. Responsible for maintaining the Banks Internal Control Standards, including
timely implementation of internal and external audit points.
12. Ensure that all transactions comply with Prudential Regulations, Laws &
Circulars issued by the State Bank of Pakistan.
13. Check and improve the operation of internal control system to identify weak
links and establish the appropriate systems to prevent/eliminate or reduce the
risks arising from the operations.
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14. To identify areas to improve the operational efficiency in the bank.
15. To conduct follow up reviews to ensure continued implementation of
recommendations made by SBP and auditors.
Human Resource Department
1. Plan, develop and implement strategy for HR management and development
(including recruitment and selection policy / practices, discipline, grievance,
counseling, pay and conditions, contracts, training and development,
succession planning, morale and motivation, culture development,
performance appraisals and quality management issues – add others if
relevant).
2. Establish and maintain appropriate systems for measuring necessary aspects of
HR development.
3. Monitor, measure and report on HR issues, opportunities and development
plans and achievements within agreed formats and timescales.
4. Manage and develop direct reporting staff.
5. Manage and control departmental expenditure within agreed budgets.
6. Liaise with other functional / departmental managers so as to understand all
necessary aspects and needs of HR development, and to ensure they are fully
informed of HR objectives, purposes and achievements.
7. Maintain awareness and knowledge of contemporary HR development theory
and methods and provide suitable interpretation to directors, managers and
staff within the organization.
8. Contribute to the evaluation and development of HR strategy and performance
in cooperation with the executives’ team.
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9. Ensure activities meet with and integrate with organizational requirements for
quality management, health and safety, legal stipulations, environmental
policies and general duty of care.
Administration
1. To manage operations and formulate business strategy to support its growth in
line with the corporate goals and targets.
2. To design and implement business development plans in line with bank’s long
term strategy and to meet annual plans.
3. To transform the bank’s franchise in Pakistan into a profitable operations.
4. To maintain overall high operational standards.
5. To source, develop and motivate staff to maintain high degree of staff
productivity, retention and to develop a professional team of international
bank’s quality.
6. To strengthen the existing relationship with the corporate, and to bring to our
books new business relationship of multinational companies and rated
domestic companies.
7. To introduce new products to improve the business size of Pakistan
operations.
8. To expand business in Pakistan through the existing branches as well as
opening new branches in the locations having potential for banking business.
9. To maintain profitable and efficient operations of all the branches in Pakistan.
10. To maintain strong and close liaison with head office and to present to the
board and the management update on the business development.
Audit Department
1. Execute risk assessment of various functions.
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2. Develop systems and review objectives, procedures, techniques and reports for
the internal audit services.
3. Communicate and coordinate with other departments for compliance of
established policies, plans, procedures and rules.
4. Initiate comprehensive audit programs for the institute concentrating on high
risk areas in terms of value of assets, adequacy of controls, level of staff
assigned and prior incident of breakdown of internal controls.
5. Implement internal audit programs in order that all aspects of transactions are
audited and submit report to the Manger Internal Audit.
6. Conduct audit to review and appraise the soundness, adequacy and application
of accounting, financial and operational controls at Head Office as well as at
Regional offices.
7. Undertake special audit at the directive of the Competent Authority and report
regularly with regard to progress of audit activities.
8. Undertake audit to ensure that fund allocations for projects are appropriately
utilized and ensure that any budget variations are approved by the competent
authority.
9. Prepare reports containing observations, comments and recommendations
based on carried out work and submit the reports to the Competent Authority.
10. Perform internal audit activities/functions in accordance with the approved
internal audit plan.
Credit Risk Management & Credit Administration Department
(CRMD & CAD)
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1. Manage the credit administration function and coordinate with other
functional in charges for ensuring smooth execution of day-to-day activities in
an effective and efficient manner.
2. Check documentation of the approved loan applications ensuring that the
approval is sanctioned by the designated official within prescribed limits
delegated by the Board or refer the case to the competent authority for further
processing.
3. Check documents submitted along with the credit proposal of significant loans
to authenticate their validity for safeguarding Bank’s interests against future
default by the borrower by recovering the loan amount through liquidating the
collaterals.
4. Ensure that all legal documentation is submitted by the applicant, arrange
proper registration of collaterals, verify and physically authenticate the loan
security quoted in the credit proposal by the applicant, engage valuation firms
for assessing fair value of the assets being mortgaged before approving the
loan application.
5. Coordinate with legal function in obtaining legal opinion as and when required
to ensure the authenticity of the borrowing party as well as the credit to be
extended in case of significant loans, and facilitate the legal advisor in all
possible ways to help in protecting the interests of the Bank.
6. Ensure compliance of the policies and procedures in disbursing the loans duly
approved by the credit committee / competent authority, check the
disbursement schedule and communicate the same to the concerned section for
crediting the approved amount into the respective party’s account as per
agreed schedule.
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7. Ensure safekeeping of all the documents related to the approved loan i.e. loan
application, collaterals / securities documents submitted by the borrower in the
vault after recording of the particulars in the respective vault register.
8. Constantly monitor activities after the disbursement of the loan, to ensure that
adequate security margins are maintained till the loan is recovered, and refer
to immediate supervisor in case security margins fall short of the desired level,
so that necessary action can be taken.
9. Follow-up with the borrowers for timely repayment of the loans, classify the
overdue cases as per the laid down policies of the Bank and report default
cases for provisioning and initiation of legal action against the defaulters.
10. Carry out work in accordance with the instructions of the competent authority
and established guidelines and procedures of the Bank and provide periodic
reports / information to the management in an effective and efficient manner
to facilitate them in decision-making.
11. Design the risk management framework based on the bank’s requirements,
dictated by the size and complexity of business, risk philosophy, market
perception and the existing level of capital.
12. Put in place proper systems for mitigating the deficiencies.
13. Review, assessment / analysis and recommend / jointly approve of all retail /
corporate applications.
14. Ensure perfection of all documentation requirements and proper maintenance
of security documents for all credit files.
15. To manage and co-ordinate Bank’s credit control activities across all
branches, ensuring value for money by maximizing income cash flows and
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minimizing losses through bad debts. To establish and maintain best practice
credit control techniques across the Bank
16. To establish and maintain an effective credit control function and credit
control processes across the Bank, through the management and out posted
staff in different branches.
17. To manage and develop all staff within area of responsibility, in line with
agreed policies and procedures. As part of this to undertake an annual
Appraisal review, and identify and address own and team members training
needs.
18. To lead on the development, documentation and implementation of a credit
control framework for corporate clients and regular customers, including,
where appropriate, credit checks, a dunning letters cycle and escalated reminder
processes, sanctions management, legal recovery processes, utilization of debt
collectors and debt factoring.
19. To advise and support the other internal departments in effective credit control
practices in relation to clients and other charges, including the implementation
of billing procedures in to the appropriate ledgers.
20. To establish credit control targets for clients, to monitor progress and take
corrective action where necessary to minimize variances from targets set
21. To produce regular and accurate debt and credit control information for senior
management. Analyze debtor information to identify and respond trends and
changes in funding regimes to ensure a focused approach to collection.
22. To draft policies and procedures in relation to credit control and ensure that they
are communicated appropriately across the Bank and implemented by the credit
control team.
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23. To attend meetings and committees as appropriate to discuss and present on
credit control activities.
BUSINESS DEVELOPMENT DEPARTMENT
1. To manage operations and formulate business strategy to support its growth in
line with the corporate goals and targets
2. To design and implement business development plans in line with bank’s long
term strategy and to meet the targets of annual plans.
3. To transform the bank’s into a profitable operations
4. To maintain overall high operational standards.
5. To secure, develop and motivate staff to maintain high degree of staff
productivity, retention and to develop a professional team of international
bank’s quality
6. To introduce innovative banking suitable to the present market conditions and
profitable to the bank
7. To introduce new products of Assets & Liabilities to improve the business size
/ profitability.
8. To expand business through the existing branches as well as opening new
branches in the locations having potential for banking business.
9. To maintain profitable and efficient operations of all the branches.
10. To maintain strong and close liaison with Authorities and to update the board
and the management on the business development.
Retail Banking
1. Plan, organize, direct and control retail banking activities and resources in
order to meet retail banking objectives.
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2. Assess market conditions, define, recommend, implement and monitor retail
banking strategy in order to gain and sustain the bank’s competitive edge and
results.
3. Review control the branches operating costs within the budget in order to
maintain cost control
4. Assess, analyze, define, recommend implement and follow up market
intelligence, and marketing plans in order to meet retail banking strategic
objectives
5. Identify customer needs initiate action and follow up in order to meet
customer expectations
6. Identify training needs recommend guide rotate monitor and follow up in
order to improve staff competencies
7. Direct and follow up with Head Operations on implementing of audit
comments in order to avoid repeated irregularities. Guide and direct Divisional
/ Zonal Head to monitor control and follow up classified accounts in order to
avoid new NPL’s and improve profitability.
Operations
1. Ensure that the business targets assigned are met and exceeds.
2. Marketing of liability products and other asset products of the bank as well.
3. Advice Business Development Officers regarding account opening for client
and all related activities (Branch Involvement).
4. To ensure that all KYC regulations are observed in account opening. (Br
Support)
5. To ensure all audit procedures are followed.
6. Relationship Management of assigned accounts.
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7. Cross selling products in SME and Corporate segments.
8. Account reactivation and account closing for their clients. (Special)
9. Courtesy call / visit of existing customers.
10. Preparation of Daily visit report.
11. Handling of customer / non-customer queries on phone / face-to-face.
12. To maintain superior and sustained service standards.
13. Timely attendance to customer complaints / acknowledgments.
14. Responsible for overall Business Development Officers action.
Information Technology (I.T)
1. Lead the IT department's operational and strategic planning, including
fostering innovation, planning projects and organizing and negotiating the
allocation of resources
2. Manage the deployment, monitoring, maintenance, development, upgrade and
support of all IT systems, including telecommunications, servers, PCs,
operating systems, hardware, software, peripherals and Office Automation
equipment.
3. Processing and appraisement of IT Proposal
4. Can attend to Bank’s internal significant issues, State Bank queries and other
Regulatory bodies.
5. Analyze MIS statement
6. Benchmark, analyze, report on and make recommendations for the
improvement and growth of the IT infrastructure and IT systems.
7. Oversee provision of end-user services, including help desk and technical
support services.
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8. Work with stakeholders to define business and systems requirements for new
technology implementations.
9. Keep current with the latest technologies.
10. Manage financial aspects of the IT department, including purchasing,
budgeting and budget review.
11. Develop business case justifications and cost/benefit analyses for IT spending
and initiatives.
12. Develop and implement all IT policies and procedures, including those for
architecture, security, and disaster recovery, standards, purchasing and service
provision.
13. Develop requests for proposal.
14. Negotiate and administer vendor, outsource and consultant contracts and
service agreements.
15. Practice asset management for IT hardware, software and equipment.
16. Establish and maintain regular written and in-person communications with the
organization's executives, department heads and end users regarding pertinent
IT activities
SAM (Special Asset Management)
1. Responsible for the overall functioning of the Special Assets Management.
2. Responsible for formulation of strategy for the Group and setting direction for
reducing NPLs of the bank, through negotiations or legal interventions.
3. Responsible for regulatory reporting to SBP and other Government Agencies.
4. To provide leadership, motivation and opportunities for development for the
Group.
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5. Responsible for interface between the group and the senior management for
day to day development and over all targets given to the Group.
6. To manage recoveries from defaulters / NPLs.
7. To formulate, implement and monitor remedial strategy for recovery /
reduction of non-performing credit portfolio.
8. To supervise collections of NPLs from customers by negotiation, legal
intervention and out of court settlements.
9. To conduct negotiations with customers for expediting repayments and
alternative repayment schedules.
10. To identify training and development needs of team members and ensures
ongoing capability development.
11. Presentation of annual budget of the group to senior management for approval.
12. To evaluate performance of team members and provides feedback on an
ongoing basis. Coach team members and ensures that they are motivated to
perform effectively.
Legal
1. To provide an optimal support to the Head Legal Affairs in dealing with and
responding legal affairs of the organization.
2. Assisting the Head in rendering legal opinions regarding issues referred by the
bank’s senior management;
3. Rendering legal opinions itself regarding issues referred by the filed
management.
4. Providing guidance to the Manager, Senior Officer/Officers in rendering legal
opinions regarding issues referred by the filed management.
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5. Drafting and Vetting of agreements / contracts for the bank, in context of the
bank’s day to day basis third parties’ contractual relationship.
6. Rendering legal opinions as to acceptability of collaterals offered against the
bank’s credits/advances, based on in-depth scrutiny of collaterals’ title
documents.
7. Scrutiny of legal documentation pertaining to the bank’s credits/advances.
8. Scrutiny of security documents for Consortium Financing & Consumer
9. Financing; and suggesting changes to ensure a sound legal standing for the
bank.
10. Analyses of discrepancies and loopholes in security documents to strengthen
finance facilities extended by the bank.
11. Advising Risk Management segment in farming policies for proper
securitization structure.
12. Providing legal support in development of new banking products for the bank.
Product structuring with regards to legal aspects and drafting of relevant
agreements/documents.
13. Maintenance of records and follow up of all cases filed against the bank for
recovery, declaration, writ petition and rent cases;
14. Visiting the courts to gets information on proceedings to maintain all records
on court cases involving the Bank;
15. Supporting the field staff in negotiating out of court settlements with the
customer and advises on initiating a legal course of action;
16. Execution of legal audits of bank's properties and advising rectification, when
required;
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17. Examination of cases related to complex legal issues such as opening of
various accounts (Corporate Partnership, Trust, Companies, funds, Zakat
Committee, Foreign Currency etc);
18. Consolidation of cases of contingent liability for reporting to Bank's Auditors
for Balance Sheet;
19. Recommending legal retainers and panel advocates to the Division Head by
taking inputs from the field executives;
20. Dealing with cases against the bank, examining property documents,
evaluation of collaterals for loan disbursement, observing court proceedings
and assisting field staff in complying to notices received from various
government agencies/authorities.
21. Mainly, Job Purpose of Unit Head is to provide an optimal support to the Head
Legal Affairs in dealing with and responding legal affairs of the organization
& to provide supervisory guidance/ assistance to the Manager, S. Officer &
Officer Legal Affairs under the guidance of Head Legal Affairs, as a whole, so
as to ensure a business environment with minimum legal risk.
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BANK SERVICES & PRODUCTS
General Banking
• Deposit Accounts
• Current Accounts
• PLS Accounts
• PLS Term Deposits
• Short Notice Time Deposit
• Monthly Income scheme
• Remittances
• Bank Drafts
• Demand Draft / pay orders
• Mail Transfer (MT)
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• Lockers
• Small
• Medium
• Large
*Key Security refundable
Credit Products
 Agriculture Loan Through Cooperative Societies
 Production Loans
 Revolving Credit Crop Loan
 Live Stock Revolving Finance
 Medium Term Finance
 Live Stock Project Finance
 Individual Loan
 Live Stock Goat Sheep and Cattle Scheme
 Live Stock Project Finance Scheme
 Medium Term Finance
 Finance against Gold
 Finance against DSCs / SSCs
 Non Agricultural Loans
 Industrial Loans
 Finance to women Coop: Societies
 Computer Finance
 PPCBL Finance against salary
 Car / Auto Finance
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CURRENT ACCOUNT:
Non interest bearing checking account
Minimum account opening requirement of Rs. 5000 only
No restriction on number of withdrawals and on number of deposits
PLS SAVINGS ACCOUNT:
Profit & Loss Sharing Saving Bank Account
Minimum account opening requirement of Rs. 5,000 only
No restriction on number of withdrawals and number of deposits.
Profit on saving accounts is credited to the customer account on half-yearly basis.
PLS TDR A/C from 3 months to 5 years with different profit rates.
BASIC BANKING ACCOUNT:
Initial deposit for account opening is Rs. 500 with no minimum balance requirement.
Non interest bearing checking account
Maximum 2 deposits & 2 withdrawals through cheque is allowed.
Lockers:
Most branches of Punjab corporative Bank offer lockers for lease, in a variety of sizes
at very competitive rentals. Locker facility is available to all customers maintaining
minimum balance requirements in their respective account categories. Lockers are
placed in a secure environment with pleasant custodians to assist customers.
Lockers rents are as under:
Size of Lockers Annual Rent Key Deposit Breaking Charges

Small Rs. 1000/- Equivalent to two Actual or
Medium Rs. 1200/-
Large Rs. 2000/- Years Rent for Rs.2,000/-
Extra large Rs. 3000/-
Respective Locker whichever is higher
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Late Payment Fee 20% of the annual rent amount
Business related Rent Free Locker Facility may be allowed to the following CD A/C
Holders.
1. An A/c Holder maintaining Min. Credit balance of Rs.0.3 M for the last one
quarter - Small Locker
quarter - Medium Locker
quarter - Large Locker
Subject to availability in the branch where the A/c is maintained. Key Deposit and
breaking charges to be recovered provided however, that A/c holder is not availing
Loans
Cooperative loans:
Agricultural Production Loans (Short Term)
• It was being disbursed on the funding of State Bank of Pakistan (SBP) and on
the guarantee of Government of Punjab. The SBP was sanctioning an annual
credit line to be remunerated on GOP T-bills rate. For the financial year 2007-
08, SBP has not sanctioned annual credit line of Rs.8,000 million due to
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which we are accommodating the small farmers from our own sources. The
current lending rate is 16% p.a.17% in case of default
The loaning is being made as under:
• The loaning facility provided for sowing of Rabi (Oct –Jan) and Kharif (April-
June) crops for a period ranging from 8 to 10 months.
• Society to be registered under Section 10 of the Cooperative Societies Act,
1925 by the Cooperatives Department.
• Maximum Credit Limit of the Society to be fixed by the Cooperatives
Department as per Rule 7 & 8 and approved by the Bank.
• Society to submit credit demand statement of its members along with other
loan documents (Demand Promissory Note, Agreement, Audit Note, etc.) duly
recommended by Field Staff of the Cooperative Department, with the
affiliated Branch of the Bank.
• Loan documents of the Society scrutinized by the Branch Manager and
advance disbursed after getting signatures or thumb impressions of the
Managing Committee in person before him.
• Resolution of the Society for obtaining crop loan to be recommended by the
Cooperatives Field Staff.
• Credit Demand Statement.
• Managing Committee list bearing attested signatures.
• Land Ownership Certificate of Managing Committee issued by the Inspector,
Coop: Societies to be got verified from the Revenue Deptt: after every 3-years.
• Resolution regarding Custodian of Society Books.
• Latest Audit Note of the Society.
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• Loan Agreement between the Bank and Society.
• Demand Promissory Note.
• Financing facility provided 100% in cash as per policy and convenience of the
Borrower to get inputs of his choice from the Market.
• The society in its turn disburses loan to its members as per their demand
statement and submits credit disbursement statement within 7-days to the
concerned Branch for end-use verification of Coop: Department and Bank
Officers.
• The society required to clear the loan with mark-up accrued thereon after two
months of the harvest of crop to become eligible for next crop loaning.
Development Loans for Members for Purchase of Tractors, etc (Medium Term)
This was earlier granted on the funding of Federal Bank for Cooperatives (under
liquidation) and thereafter from SBP funding and now from own resources. The
salient features / procedure of the finance are as under: -
For purchase of Agricultural Implements (Tractor-Actual Price, Thrashers. 150000/-,
Rotavetor, Rs.70, 000, Discherro, 50000, Trolley, Rs.100000/- , Meat & Mitch Cattle,
Livestock and for installation of Tube well/Turbine.
Period of Finance up to 5 years repayable in half yearly installments with Mark-up @
18% p.a in case of default 20% p.a.
Loaning provided to a Member through respective affiliated registered Cooperative
Society on fixation of Special MCL for the purpose by the Coop: Department duly
approved by the Bank Management as well as special MCL fixed by the society itself
for incurring outside liability up to a maximum of Rs.5.00 lacs.
Borrowing member required to deposit margin money @ 20% of the loan demand,
with the Bank.
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Loan advanced against Security of immovable property / agri. Land having value
double the amount of loan demand either through registered Mortgage Deed or Aarh
Rehan or Agri. Pass Book System under the Law of Land Minimum Security 40
Kanals of Agri Land irrigation or 100 kanals of barrani Land.
Complete Loan Documents with quotations, on the choice of Borrower, to be
provided with the Loan Application duly recommended by the field staff of the Coop:
Department.
Sanction of loan Branch Level and after having CIB Report from the SBP.
Loan cases to be processed and finalized within 15 days.
Delivery of Tractor through Local Dealer approved by the company and for
implements, etc., Issuance of Pay Order in favor of the supplier.
Tractor/implements required to be got comprehensively insured from any of the
approved Insurance Company on the panal of Bank for the five year at time of
issuance of finance and delivery of tractor.
For the convenience of small farmers a Booklet (in “Urdu”) containing Procedure and
relevant loan documents available in all Branches.
MTF for members of Cooperative Societies up tp Rs.20,00,000/- @ Rs.5,00,000 per
borrower under General Permission of MCL of RCS for a period of 5 years repayable
in 10 equal installments against 5 acre per borrower.
Development Loans for non-member Agriculturists:
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On the emphasis of Government of Punjab for liberal financing towards agricultural
sector, PPCBL introduced this scheme for individuals (non-members). The salient
features are: -
Admissible to Individual farmer for purchase of Farm Machinery, viz. Tractor, Tube
well, Thresher, Trolley, etc. and Transport for carriage from farm to market (agro.
purpose)
Net amount of finance up to actual cost of Tractor @ 18%
Equity participation – minimum 10%
Period of Finance up to 5 years
Repayable in quarterly or half yearly installments, as per choice of borrower
Security through Agricultural Pass Book system or registered mortgage of
immoveable property (rural or urban)
Minimum Security 40 Kanals
Disbursement within 15-days
Loans against Pledge of Gold/Gold Ornaments for Agriculture Purposes (Short
Term)
On the directions of SBP, the Bank is providing micro-financing facility against
pledge of Gold / Gold Ornaments preferably for agricultural purposes to non-
members individuals on easy terms. The salient features are: -
Loaning facility provided for agricultural/personal needs/ purposes to any Individual
against pledge of Gold/Gold Ornaments up to 60% of the value duly assessed by the
registered Shroof/Goldsmith.
Period of advance is up to 6 months at mark-up rate of 16%. Mark-up payable at the
end of each half year
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Branch Manager and Acro (Credit Committee) has a sanctioning power up to Rs.30,
000/-,
Comprehensive Insurance of Net Value of Gold from any of the approved insurance
company on the panel of the Bank
INFORMATION TECHNOLOGY LOAN
As per directives of the State Bank of Pakistan, the Bank is extending micro-financing
for Promotion of Information Technology.
The salient features are:
Citizen of Pakistan & resident of Punjab and permanent employee of Govt.
Departments / Organizations (selected).
Period of finance up to three years
Limit of finance up to Rs.25, 000/- @ 16% p.a.
Repayable in 36 equal monthly installments
Sanction of Finance by the Branch Manager
Livestock Micro-Financing for Purchase of Meat & Milk Cattle and Goat &
Sheep (Short Term)
Live Stock Revolving Credit to Societies (Revolving Credit)
The net maximum amount of finance Rs.8, 00,000/- per society and Rs.1, 00,000/- per
borrower
Margin money 10% of the purchase price of cattle
Period of finance three years @ mark-up of 13% p.a
One time documentation for three years
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The society/beneficiary entitled for any number of withdrawals and repayments
(multiple operation), within the limit during three years with annual clean up from the
date of first withdrawal, on a date mutually settled.
Individuals
The Net Maximum amount of finance Goat Sheep & Cattle Rs. 200,00/- per borrower
of two acres security , in case of one acre Rs.100,000/-
Period of finance one year
Mark up Rate: 15.80%
Repayment in half yearly or quarterly equal installments or culture and with in the one
year as per choice of borrower in case of Meat and Mitch Cattle
The Security double the value of net finance either in the shape of agriculture land
through Agriculture Pass Book System or Urban property through registered
mortgage. However, the borrowers of rural areas must be the owner of 1-2 acres of
agriculture land.
Case processing fee Rs 500/-
Live Stock Project Finance (Short Term)
• During the 2004 the Bank signed a Memorandum of Understanding with
Livestock & Dairy Development Department, Government of Punjab in
presence of the Chief Minister, Punjab. The scheme aims at extending loans to
farmers for the development of Livestock and Dairy Development Projects in
the Punjab. Under this arrangement, District Officer (Livestock) would act as
Focal Person who would not only provide feasibilities free of cost but would
also provide animal health coverage before and after the implementation of the
project. Both members of cooperative societies and individuals can borrow
funds from this scheme for specified projects.
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• The salient features of this product are: -
• Cooperative Societies
• Net amount of finance, Rs.5 lacs per borrower – 8 members can avail loan.
• Margin money 10%.
• Period of finance 5 years, recoverable in 10 equal half yearly installments
including mark-up accrued thereon.
• Rate of mark-up 13%.
• Case processing fee Rs.1, 000/-.
• Security of loan at least doubles the value of net finance in shape of
agriculture land not less than 5 acre per borrower through Agriculture Pass
Book system or urban property through registered mortgage.
• Individuals
• Maximum amount Rs.5 lacs in case of group of persons Rs.10.00 lacs.
• Margin money 20%.
• Period of finance 5 years, recoverable in 10 equal half yearly installments
including mark-up accrued thereon.
• Rate of mark-up 13%.
• Case processing fee Rs.1, 000/-.
• Minim agriculture land requirement 5 acre per borrower valuing double the
amount of loan. In case security not sufficient, borrower can give urban
property. In case of blood relation, accumulate land of 5 acres of two
borrowers is acceptable.
LOANS AGAINST DSCs / SSCs for Agriculture purposes
The salient features are: -
· Finance limit – Rs.1.00 lac.
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· Mark-up rate – 16% p.a.
· Repayment period – 1 years.
· Security – lien mark on DSCs / SSCs.
· Net Finance up-to 75% of face value of DSCs/SSCs.
WOMEN COOPERATIVE SOCIETIES LOAN
For the sake of supplementing the income of women for their economic uplift and
poverty alleviation, a new scheme has been recently launched.
The salient features of the policy are:
Finance limit – Rs.2.00 lac.
Mark-up rate – 11%
Repayment period – 3 years with 6 months grace period.
Security – mortgage of property rural or Urban
AUTO FINANCING LOAN
Auto Financing (Medium / Long Term)
This is the latest financial product.
The salient features are:
Eligibility criteria – Permanent Govt. of Punjab employees and Autonomous Bodies
and Financial Institutions having good rating in BPS-16 & above or equivalent &
above.
Finance limit – Rs.4 to 9 lacs as per entitlement at mark-up rate of 12%.
Margin requirement – 10% of the value of vehicle
Repayment period – 5 years through monthly installments
Security – joint registration of vehicle and lien mark on funds
Rate of Markup 14% P.a
LOANS FOR OTHER SCHEMES
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The Bank is also providing loans to Non-Agricultural / Industrial Societies, the
biggest venture in industrial loaning is the Pakistan Cycle Industrial Cooperative
Society Ltd., the manufacturer of Rustam & Sohrab Cycle / Motorcycle.
STAFF LOANS
Home Loan (For Staff Only)
1. Eligibility
You may apply for PPCBL Home Loan.
If you are a Pakistani National
If your age is between 23 and 60 years at the time of application (Subject to maximum
age of 65 at the time of maturity)
If you are in continuous employment in a permanent position for the last 2 years or
more
OR
If you have existing 3 years (or more) of business or professional experience
If your gross annual income is Rs: 240,000/-or more [Your spouse’s income (up to
50%) can also be combined with yours.
If you require a financing requirement starting from at least Rs: 500,000/-
You may apply for PPCBL Home loan for a minimum period of 3 years and
a maximum repayment 20 years.
Salaried Persons
• Maximum 48 times monthly gross income
• Latest salary certificate
• Certificate from the employer regarding leftover service
• Estimates and other related approved documents
• 30% take home pay.
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Housing Loans for Business & Self-employed persons
• 4 times the gross annual income
• Income Tax Returns
• Auditor Certificate
• Estimates and other related approved documents
2. Documents
Basic Documents:
• 2 recent passport size photographs
• Copy of Computerized National Identity Card. (Original to be shown at
branch)
• Copies of complete chain of title documents of the property being offered (If
identified)
• Processing Fee Cheque favoring by PPCBL.
• Letter of Understanding.
Car/Motorcycle Loan (For Staff Only)
1. Benefit & Features
• Hassle-free processing
• Personalized service
• Low Down payment (as low as 10%)
• Flexible tenors - up to 5 years
• Competitive Insurance rates
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• Advance Booking Facility
• Early Settlement Option (Nominal Charges apply)
• Co-Borrower Facility
• No hidden charges
• Lowest down payment in town.
PPCBL believe in sharing the joy of its customers by giving them benefits, which are
aimed at making customer’s car buying experience an exciting event.
Its highly trained executives will take care of its financing requirements.
The only thing you need to worry about is choosing the car and its colour.
2. Eligibility
You may apply for PPCBL Car Loan to purchase a brand new car:
• Pakistani National Identity Card holder.
• Over 20 years of age (Maximum 60 years in case of salaried.
• Salaried, of Punjab Govt. Employees.
3. Documents
• 2 recent passport size photographs.
• Copy of Computerized National Identity Card.
• Last six months bank statement
• Most recent Salary Slip/ Copy of Registration with respective body (if
applicable)
• NTN certificate (in case of advance payments).
• Salary certificate (for salaried individual).
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INTERNSHIP ACHIEVEMENTS
Duty Assignment to the Staff
S.# Name Designation Assignment of Duty

1 Ch. Shahid Rafique Acting • Supervising of all Branch
Manager working
2 Rana M. Saleem Operation • To maintain the all statements
Manager • To maintain the loan
documents
• To pursue the legal case to
security court & Register
court
• To attached with Branch
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Manager for advances &
recovery
• To reporting all the branch
work to Branch Manager

3 Ch. Shabir Hussain RCO • To prepare the reconciliation
statement
• To prepare the vouchers, daily
routine work
• To attach with operation
manager
4 Muhammad farooq Officer • To maintain the all staff
finance & booklet
• To maintain the Gold Finance
& booklet
• To maintain the loan
Advanced * Recovery to staff

5 Mr. Abdul Hameed Officer • To maintain all kind of
deposit, balance books & loan
balance books
• To maintain the day book &
general ledger
• To go for cheque clearing
from Bank of Punjab
6 Ejaz Ahmad Officer • To maintain sundry debit &
credit account
• To prepare vouchers of daily
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work
7 Tanveer Ahmed Kardar Cashier • To maintain cash
• To collect utility bills
• To custodian of Gold &
booklet
WORK PERFORMED DURING INTERNSHIP
My internship provided me a great opportunity to learn & experience different
banking practices. During the seven weeks of my internship I got a good chance to see
what the actual banking is regarding the operations performed at branch.
1st week:
 During the first week of my internship, I learnt these things at
the account opening/maintenance department:
 To open the account
 To set the accont no. stamp
 To fill the deposit slip
 To issue the cheque book
To Open the Account:
During my internship, I opened two types of account;
 single account
 Joint account
1) Single Account:
I monitored three types of accounts under this head along with
documentation required for these accounts.
 Account of a literate person
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 Account of a salaried person
 Account of an illiterate person
2) Joint Account:
Besides opening this account I was provided with the following
information regarding JOINT ACCOUNT by manager ops.
• how a joint account is affected by the death of one joint account holder:
3) Partnership Account:
I did not open this account personally, but I know the following regarding
PARTNERSHIP ACCOUNT.
 documents needed to open this account
 Moreover the operation manager told me these things
regarding the partnership account:
Death of a partner:
Admission of new partner
Documents required in case of a new partner
2nd & 3rd Week:
4th Week:
My 4th week was in the cash cabin and I performed
following work there:
 To make the online transfer voucher via cash
 To post these vouchers
 To issue a DD via cash
 To post the vouchers for this DD
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 Study of cash book
 Study of cash position book
 Visit to strong room
 How the cash is maintained in strong room
5th Week:
 During the 5th week, I worked with the operation
manager and learnt about his working.
 How he checks the daily vouchers related to transfer,
cash and clearance departments
 I have some idea about the opening & closing of bank
but not have a through grip on it.
 How the manager ops authorize various transactions
 I also have some idea about the DAILY GENERAL
LEDGER REPORT
6th Week:
7th Week:
 I did miscellaneous work in the last week of internship:
 What is the function of a feeding/pooling branch?
 What is the inter branch Dr/Cr advice
 Study that how CDRs are issued
 How an account is made exempted from ZAKAT.
 Study of key book
Branch Services
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• Cash Management.
• Pay Order , Demand Draft, Mail transfer, Clearing
• Issuance of Govt. Securities
• Lockers
CLASSIFICATION OF PEOPLE
 PRIMARY SERVICE PEOPLE …… FRONTLINE / DIRECT
CONTACT
 SECONDARY SERVICE PEOPLE …… SERVE BUT ARE UNSEEN
 SERVICE SUPPORT PEOPLE …… EVERY ONE ELSE!!
Target Market Customer Franchise
PRIMARY
• Cooperative Societies.
• Retailers / Wholesalers
• Self Employed Professionals
• Personal Accounts of Businessmen/Traders
• Salaried Class/Pensioners
• Housewives
• Agriculturists
SECONDARY
• Provident/Pension Funds
• Trust/Endowment Funds
• Government Deposits
• Educational Institutions
• Clubs/Associations
• For ISL Diplomat Personal A/Cs
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Branch Staff
• Branch Manager Responsible for sales & operations
• Officer operation Responsible for operations & Counter service
• Cashier Cash area supervisor
• ACRO Look After Agriculture Credit & Recovery
• Supporting Staff Assistance
• BDO (future staff) Deposit Mobilization/Credit and Recovery
Work Assigned
a) Account opening
b) Pay in slip for PLS & current account
c) Editing, formatting, checking and printing statement of affairs
d) Preparation and dispatching of confirmation letters to the account holders of
the bank
e) Preparation of receipt and payment vouchers
f) Calculation of interest on loan
g) Posting of voucher
h) Ledger posting
i) Salary posting
j) Assistance in issuance of loan scheme against Gold/Gold ornaments
k) Study of day book
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FINANCIAL ANALYSIS
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Horizontal Analysis
Assets 2007 2008 2007-08 2009 2008-09

Rs.(000) Rs.(000) % Rs.(000)
%
Cash and balances with -
treasury bank 715017 695200 -2.77154 601882 13.42318757

Balances with other -
banks 5586775 2230225 -60.0803 2017990 9.516304409

Investments -
558009 508762 -8.82548 451012 11.35108361

Advances -
8009821 7539306 -5.87423 6733775 10.68441843

Other Assets 216136 148229 -31.4186 202010 36.28237389
Operating fixed assets -
2571139 3712774 44.40192 3705253 0.202570908

Deferred tax asset-net
Total Assets 17656897 14834496 -15.9847 -100

Liabilities
Bills payable -
39654 75186 89.60508 44305 41.07280611

Borrowings from
financial Institutions 12000000 8000000 -33.3333 8000000 0

Deposits and other -
accounts 2007645 1929185 -3.90806 1837175 4.769371522

Other liabilities 185623 109525 -40.996 134690 22.97648939
Deferred tax liability
Total liabilities 14232922 10113896 -28.9401 -100

NET ASSETS
Share Holder Equity
Share Capital 430351 434155 0.88393 434647 0.113323583

Capital Reserves -
370827 402298 8.486707 401727 0.141934586

Un appropriate profit -
133776 230058 71.97255 -749013 425.5757244

Surplus on revaluation -
of fixed assets 2489021 3654089 46.80828 3608391 1.250598987
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Ratio Analysis
Ratio Name 2009 2008 2007
Markup to Advances 17.72 13.06 15.34

Markup to Deposits 85.50 32.05 27.25
Administrative Expense to Deposits 36.95 30.90 27.40
Return on Assets (7.14) 0.81 0.002
Return on Equity 26.49 0.43 0.06
Infection Ratio 50.32 47.07 38.81
Provision to NPL 35.08 34.14 38.81
Liquidity Ratio 167.10 178.01 341.68
Advances to Deposits Ratio 366.42 390.80 398.96
Liability to Equity Ratio 213.22 68.76 80.60
Average Rate of lending 16.6 12.23 14.34
Average Rate of borrowing 15.96 6.22 3.90
Spread
I. Mark-up to Advances:
= Mark-up / Return / Interest Earned × 100
Advances
Mark-up to Advances:
2009 2008 2007
20.38 15.25 14.51
 The lending rate of the bank has increased over a period of time.
 Since it is increased with the increase in Advances, and with the increase in
Profits, it is a Good sign.
II. Mark-up to Deposits:
= Mark-up / Return / Interest Expensed × 100
Deposit
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Cost of Deposits
2009 2008 2007

4.34 3.53 2.71
 The lending rate of the bank has increased over a period of time.
 PPCB advances are also increasing with the increase in deposits; it means
PPCB Bank is getting more deposits to meet the requirement of the Advances.
III. Administrative Expenses to Deposits:
= Administrative expenses × 100
Deposit
Administrative Cost
2009 2008 2007

2.77 2.30 1.87
There is Decrease in Admin Exp in 2007 and a equally increase in 2008 and 2009.
It is good in the sense as it has increased with the increase in the Deposits and
Advances. It means its administrative functions are improving and employees are
working efficiently. It can be discussed more fairly in the form of Spread
Cost of Funds = Cost of deposit + Administrative cost
Cost of Funds
2009 2008 2007

7.11 5.83 4.58
Spread = Lending Rate – Cost of funds
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Spread
2009 2008 2007

5.56 5.43 4.74
Spread denotes the earning of the PPCB bank by its primary functions. Spread of
the PPCB Bank is increasing every year which shows that Bank is borrowing deposits
at a much cheaper rate and lending it on high rates and thus getting its Earning. In this
sense PPCB has performed sophistically in the past years.
IV. Return on Assets:
= Net profit after taxes × 100
Total Assets
Return on Assets
2009 2008 2007
3.04 3.46 3.71
 There is a decrease in Return on Assets every year. It can be because of 2
reasons:
• Because of decrease in Net profit after tax every year.
• Because of decrease of advances. Although Assets have been increased
in PPCB Bank. It is good because increase in assets is good for Bank.
Bank can earn return by utilizing them in future.
V. Return on Equity:
= Net profit after taxes × 100
Paid-up Capital + reserves
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Return on Equity
2009 2008 2007
34.20 35.71 38.78
There is a decrease in Return on Equity in every year. The reasons for decrease in
Return on Equity may be:
It is because of decrease in after tax Profit. It is also because of decrease in Paid up
Capital and Reserves and share capital. It is not a Good Sign as Paid up capital means
shareholders have trust building towards PPCB Bank.
VI. Infection Ratio:
= Classified Advances × 100
Gross Advances= advances+provision against advances
Infection Ratio
2009 2008 2007
8.61 6.68 4.66
The Infection Ratio suggests how much the Business of Banking Company
infected. It gives the proportion of Non Performing Loans in the Gross Advances. It is
increasing in PPCB Bank gradually which is not a good sign for PPCB bank.
VII. Provision to NPL:
= Provision for Bad debts × 100
Classified Advances
Provision to Classified
2009 2008 2007
70.88 58.63 100
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• In PPCB Bank Specific provisioning is done prudently. It is not done on
General basis. So it is good.
VIII. Cash Reserve Ratio:
= Cash with the treasury banks × 100
Deposits
Cash Reserve Ratio

2009 2008 2007
10.63 12.11 13.70
This percentage is showing that out of every 100 Rs in the deposit of the bank, it
has been maintaining 10.63, 12.11, and 13.70 in cash with the treasury bank. Bank has
been maintaining its liquidity.
This is amount of money the bank is legally required to keep with central bank is
termed legal cash reserve ratio or requirement. It is certain percentage of deposits. If
the cash reserve ratio is raised, the lending or financing power of the bank contracts
accordingly. A decrease in ratio leads to rise in the rate of money expansion by
increasing the lending and financing capacity of the bank.
IX. Liquidity Ratio:
= Cash with Treasury banks+ other bank balances+ investments ×
100
Deposits
Liquidity Ratio
2009 2008 2007
58.10 42.78 54.08
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Cash ratio refers to the amount of assets which banks are legally required to hold
in the forms of (i) cash in hand, (ii) balances with SBP/NBP and (iii) approved
securities. The effects of varying liquidity ratio are similar to those of varying cash
reserve ratio. The increase in it causes a fall and decreases in it a rise in the rate of
credit expansion.
X. Advances to Deposits Ratio
= Advances × 100
Deposits
Advances to Deposits Ratio

2009 2008 2007
69.44
80.26 75.63
Advances to deposit ratio show an increasing decreasing trend. This trend is
observed as The advances of the bank decreases and total Deposits of the bank
increases which result in an increase in 2008 and a decrease in 2009..
XI. RATIO OF LIABILITY TO EQUITY
= total liabilities
Equity + liabilities
Liability to equity Ratio

2009 2008 2007
86.30 86.82 86.57
 It shows that 86.57% is the liability of outsiders’ i.e. customers out of the total
liability of the bank liability and rest is owner’s liability.
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XII. AVERAGE RATE OF LENDING
= markup/return interest earned .
Advances + investment + lending to financial institutions
Average rate of lending

2009 2008 2007
12.19 11.03 9.54
Markup is earned by financing through cash. The bank had been advancing credit
at the rates 12.19%, 11.03%, and 9.54% in the years 2009, 2008, 2007 respectively.
The rate of lending depends upon on the deposits and advances of the bank.
XIII. AVERAGE RATE OF BORROWING;
= markup/return interest expensed .
Borrowings + deposits
Average rate of borrowing

2009 2008 2007
3.86 3.30 2.39
This is the rate bank pays on its deposits to customers. The bank had been paying
on the deposits at the rates 3.86%, 3.30%, and2.39% and in the years, 2009, 2008 and
2007 respectively. The average rate of borrowing is depending on the advances if the
borrowing rate is more than it means demand of advances is more and vice versa.
XIV. SPREAD
=Average rate of lending – Average rate of borrowing – administration expenses
12.19-3.86-2.77= 5.56
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11.03-3.30-2.30= 5.43
9.54-2.39-1.87= 4.74
Spread
2009 2008 2007
5.56 5.43 4.74
PPCB Bank worked with the spread of 5.56, 5.43, and 4.74 in the years 2009,
2008, 2007 respectively. Spread denotes the earning of the PPCB bank by its primary
functions. Spread of the PPCB Bank is increasing every year which shows that Bank
is borrowing deposits at a much cheaper rate and lending it on high rates and thus
getting its Earning. In this sense PPCB has performed sophistically in the past years.
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OBSERVATIONS & RECOMMENDATIONS
SWOT Analysis
Strengths:
• 159 branches in even remotest areas, hence, a very strong customer base.
• Dedicated team to provide financing arrangements to small and poor farmers.
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• Strong understanding of perspective customer segment.
• Substantial resources which if efficiently utilized can lead to achieve a
horizons of success.
Weaknesses:
The current structure and operation of activities are vulnerable to following:
• The current information system is manual.
• There is no strong internal control department.
• The current loaning procedure is susceptible to fraud and forensic issues.
• The workforce seems impoverished and work patterns are not competitive.
• The banking infrastructure is weak and not upto date to contemporary
commercial banking practices.
Opportunities:
• Computerization and online operation of Management information system.
• Computerized accounting and accounts maintenance system.
• Separate operation of internal control department will ensure that all activities
and functions are conducted to the bet of practices.
• Opening of separate Human Resource Department can ensure that all
personnel are duly operating efficiently and properly.
• Risk Management Department will ensure the proper procedure to be adopted
with granting different kinds of loans, further this department can also ensure
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that default loans are also recovered and various kind of risk exposure are
mitigated such as Credit, Operational, Functional Risks.
Threats:
• The proposed system change once from Manual systems to computerized MIS
System may not work as intended.
• The State Bank deadline to meet Share Capital 6 Billion may not be met.
• The employees of the Bank may deter change, as they are habitual of working
manually.
• The proposed system of change over may not be able to justify cost.
• The sheer competition in commercial banking Sector may not allow PPCBL to
diversity it operations in similar lines.
Where we are
The Punjab Provincial Cooperative Bank Limited is currently operating and
conducting all its accounting and financial operation manually. There is no separate
department which ensures that the activities are conducted according to the best of
practices. There is no proper business strategy to provide competitive advantage in the
banking section. The Punjab Provincial Cooperative Bank Ltd. was incorporated in
1924. PPCBL is registered under Section 10 of the Cooperative Societies Act, 1925.
In 1955 PPCBL was given the status of Schedule bank. The main function of the
Bank was to finance the banks in each district. In 1976 Cooperative Banking structure
was reorganized and Federal Bank for Cooperative was set up. This was later on
placed under liquidation in 2002. Afterwards State Bank of Pakistan started funding
to the Bank directly. PPCBL with the network of 159 branches had been making
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advances only to Cooperative Societies upto 2001 for crop inputs as “Short Term
finance”. Thereafter, it diversified its loaning portfolio to agriculturists in their
individual capacity as well through various products.
Where we want to be
PPCBL with its extensive network of 159 branches at grass root level has all
the necessary resources to be successful Bank. The Bank has vision that by 2015 it
will be a leading Cooperative Bank in the field. PPCBL will also have its commercial
banking operations diversified dealing in similar lines as other successful banks do.
The Bank paramount objective is not profit maximization but to help needy people.
But it will utilize its resources to the best to provide maximum effectiveness and also
provide quality services to its customers.
How to get there
The current manual procedures of operations will be automated.
The Bank is contemplating to diversify its operations in other lines of business.
Developing a sense of urgency and high degree of motivation among the employees.
Control over fraud and risks.
Recovery of non-performing loans.
Separate operation of internal control department which will be strengthened.
The control environment in the Bank.
Innovative solutions to all current problems and contingencies in Bank.
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The proposed changes will not only allow the Bank to perform well but will also
result in quantum leaps in the success and achievement. It will be a kind of process re-
engineering
RECOMMENDATIONS:
STRATEGIC REFORMS IN OPERATIONS
Board and President/CEO:
In accordance with Section G-1(A) of the Prudential Regulations for Corporate
Banking:
President of the Bank can be reappointed with professional banking experience.
Rationalization of the structure of the Board may be done.
Board of Directors can be appointed/elected as per FPT criteria as stipulated by State
Bank of Pakistan. The Board can perform its functions and duties according to the
combined code of Corporate Governance as per SBP requirements.
Diversifying Commercial Banking
The Punjab Provincial Cooperative Bank can diversify its operation in also
contemporary commercial banking initiatives.
ATM cards can be introduced by bank.
Online transfer of money would be possible.
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Automation of Information System:
Automation
The current manual procedures may be automated by the aid of
computerization making Punjab Provincial Cooperative Bank Limited a very flexible
modern structure to achieve success in contemporary environment of sheer
competition.
This process of change over has already been initiated. The required IT
hardware has already been acquired or is in process.
This change over can be implemented with the help of professional IT
consultants. Customized software can be developed with collaboration of software
developing house. The software will be tested and implemented in phased stages.
Resulting in change over from manually prepared Books of Accounts to computerized
transactions. One entry in Journal will result in automatic updation of all relevant
accounts. System will also comprise of data archiving facility and audit trail system.
The Head Office will have an intranet which will connect all operations. All
transactions can be linked and checked.
Archiving facility can lead to a secondary back up to data base and available
in case of any contingency and problem.
Audit trail software can result in aiding to find the track of data entries will
help the external auditor when conducting the final audit of the bank.
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Cost Benefit Analysis of proposed MIS
The proposed MIS shall be implemented with the help of IT consultants. It can
bring following benefits to the Bank:
The current manual information system can be automated.
This can lead to better performance of employees and enhanced speed and accuracy
of reporting, transaction entry.
This change over can result in quantum leaps as Bank will be only striking distance
away from other commercial banks.
Change over can also lead to better security and speedy processing of all day-to-day
transactions.
Human Resource Plan:
Objective
Human Resource Department can craft its separate manual / policy framework
and procedural guidelines to the Human Resource Function in Punjab Provincial
Cooperative Bank. It shall provide a detailed guidance in the documented form the
significant policies frame work. Time to time related policies in personnel related
activities.
Human Resource Vision
(Armstrong, 2008)The Human Resource function in the Bank is designed to
provide an enabling environment for highly efficient workforce, comparable to
commercial banks in Pakistan. At the same time, given the nature of Bank’s
operations and clients, employees of the bank have to project an image that they
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understand the needs of the majority of the population who are unfamiliar and often
intimidated by conventional commercial banks by practicing friendless sensitivity and
community.
Corporate ideas
To play primary role in achievement of desired results to act as a helping hand
and removing any kind of conflict and grievance in employees to motivate them to
work hard.
Primary Policies
(First Microfinance bank, 2008)To prepare a Manpower and Budget at least once a
year as part of annual budgeting exercise.
To have a systematic methodology for requisitioning personnel for filling vacant
positions in the Bank. A personnel requisition may only be raised by concerned
Functional Head.
To recruit on merit with suitable candidate.
Training and development.
To select the most appropriate incumbent for a vacant position.
To provide new recruits with an appointment letter documenting the terms and
conditions of the employment and to conduct an orientation session to familiarize
them with bank environment and corporate goals.
To confirm – Internship.
Incentive based pay structure.
Performance appraisal of each employee as conducted annually by using an objective
criterion.
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Introduction of performance based pay structure.
To review the salary of an employee via his / her performance with a view keeping it
competitive with prevailing rates for similar work environment.
Chief of H.R. prepares a summary of recommended training needs.
By referring to the filled Performance Appraisal Forms of different employees. By
memos issued by functional heads recommending specific training programme for
employees in their functions.
Chief of Human Resources on the information identifies available sources, methods
and institution of fulfilling identified and training needs of Bank employees.
To have a standard schedule of working hours that the employees are required to
observe in order to finish their designed work.
To provide loans and advances to its employees wherever eligible to meet their
financial obligations.
To transfer employees through inter-functional transfers who ever would be felt
would prove to be benefited to the employees and on the Bank.
To provide suitable vehicles for the senior Management cadre as per terms of
employments.
To evaluate employees performance and to aiding performance.
To impart training and enhance their training efficiency and competency levels.
Retirement age 60 years.
Policy for Golden Hand Shake for redundant employees.
Policy for Pension and Gratuity.
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Page 92 of 92

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HAILEY COLLEGE OF BANKING & FINANCE, PU Internship

“Achieving business excellence by catering to the financial requirements of the rural

values of cooperation in a conducive supportive environment”

Profile of the Bank

Cooperation is an International Movement of enriched history spread over decades. It has

proved as an effective system for socio-economic growth and community development of

Malaysia, Europe, Japan, Philippines etc.

level; and Provincial Bank / Apex Society was at the top.

requirements of cooperative societies and Central Cooperative Banks, respectively.

The PPCBL gained the status of Scheduled Bank in 1955.

membership, democratic member control, member economic participation, autonomy,

independence, self-help and mutual cooperation.

Major Objectives of the Bank

o Promote growth of the Cooperative movement.

demand or otherwise, and withdrawal by cheque, drafts, order or otherwise,

for the purpose of lending or investment;

o borrow or raise money;

o lend or advance money either upon or without security to member societies

and any other person in such manner as may be necessary;

o serve as a balancing centre for cooperative societies in its area of

of the member societies;

o purchase, sell, transfer, endorse, pledge or otherwise negotiate securities of

the Government, Government of Pakistan, promissory notes, bonds,

specified under section 37 of the Act for legitimate investment of surplus

financial responsibility and to draw return thereon and to do other things

incidental to such business;

terms as may be fixed by the Board of Directors or any office-bears or

officers authorized by the Board of Directors;

o establish, support, or aid in establishment funds, trusts and conveniences

calculated to benefit employees or ex-employees of the Bank or the

dependents and grant pensions;

against sufficient securities acceptable to the Bank, in accordance with the

of the bank in satisfaction or part satisfaction of any of its claims;

o provide educational assistance and training to members of the member socie-

ties or staff of the Bank or of the member societies;

institutions engaged in promoting the cause of co-operative movement and

co-operative education and training;

transact business, with the permission of the regulators, so as to provide

banking services to the public;

o grant and issue letters of credit and travelers’ cheques;

o collect and transmit money and securities;

o negotiate loans and advances;

o carry on and transact every kind of guarantee and indemnity business;

o use computer or other electronic systems or delivery channels for banking

products and services;

o enter into participation arrangement(s) with any other bank or banks or

financial institutions with the object of making loans and advances;

o help the growth of the co-operative movement; and

(a) cooperative societies admitted as members in accordance with these bye-laws;

holding shares or incurring any liability;

admitting it as member but it shall have representatives as provided in clause (b)

(d) President; without holding shares or incurring any liability.

supreme authority of the Bank shall vest in the General Body.

(2) The General Body shall consist of:

(a) ex-officio members of the Bank;

(b) nominated professional members of the Bank; and

(c) District delegates elected in the district meetings of

2. Board of Directors.− (1) The Board of Directors shall consist of−

(a) Registrar, who shall be its Chairman;

law 6(b); and

(d) Three elected a member, who is qualified to be elected as Director

under the election rules.