The Bank of Punjab

BANKING SCOPE
Bank Means
A bank is an institution for the custody, loan or exchange of money for sanctioning credit, for transferring funds by domestic and foreign bills of exchange. It is a pipeline through which currency moves in to and out of circulation. As it is clear from the definition of banking, the main activity or function of banking is borrowing and lending of money with a margin of gain. However, as for as the present day banking is concerned, there are a number of different banks, set up under specific different objectives, performing various functions.

Banking System In Developing Societies

In the developed societies, the banks dont have to make many efforts in mobilizing savings, as it has become a second habit with the people. The commercial are financing the short and long term capital needs of the business. The loans and discounts of commercial banks include real state mortgages and long term loans, which extended to as a long period as ten years. These banks also administer estates, acts as insurance agents and underwriters, provide brokerage services and implement domestic as well as foreign economic policies of the government. Commercial banks in developing countries have to make vigorous efforts of resources mobilizing at all levels. However, with the passage of time the commercial banking operations are under going remarkable qualitative change. In Pakistan for instance, banking facilities are

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The Bank of Punjab being extended to the un- banked places. Planned efforts are being made to enhance the supply of bank advances to the new priority sectors in consonance with the present day socio- economic needs. A special scheme to induct commercial banks in the field of agricultural credit was introduced in December 1972. the scheme provides for short and medium terms loans to farmers under a much simplified procedure. State Bank measures aimed at increasing the flow of credit to the small man in business and industry as well as to housing and non-traditional exports have also yielded positive results. The Credit Guarante Scheme is covering the large risk to the commercial bank in the sphere of agricultural finance and small loans to a reasonable extent. Mandatory targets for small loan credit to the agriculture sector and for housing have been prescribed and are being enforced. Corporate banking is also being reorganized and reactivated on more viable lines.

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The Bank of Punjab

HISTORY OF THE ORGANIZATION

The Bank of Punjab was established under an act of Punjab Assembly, viz. The Bank of Punjab act, 1989. The bill to this effect was passed by government of Punjab in accordance with the provisions of the constitutions on July 26, 1989. The act provided the foundation on which edifice of the bank was created. The entire responsibility of policy formulation and management has been placed, under the act, with the board of directors. The bank comprises ten directors, out of which six directors are appointed by the government (three of civil service and three prominent personalities from the Industry, Agriculture, and Commerce etc.) The remaining four directors are elected amongst shareholders, the criteria for which have already been laid down in the act.

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The Bank of Punjab CAPITAL STRUCTURE AUTHORIZED CAPITAL At the time of establishment 1989, the authorized capital was Rs.200, 000, 000 divided in to 20,000,000shares of Rs.10 each. Rs.851, 880, 000 shares of Rs.10 each. Paid up capital was

Reserve Funds
Total reserves Rs.971049000

Scope Of The Bank

The Bank of Punjab performs all of its functions as are attributed to commercial banking institutions both in the area of resource mobilization, loan and investments. The bank is thus providing all type of advances to businesses, trade and industry in seasonal and annual basis and is enduring through a prudent policy, the safety and protection of its loan portfolios. As the resource base of this bank expands, project financing will also be brought in to its fold.

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The Bank of Punjab

OBJECTIVE / MISSION
The Bank of Punjab is a commercial bank. It performs the same function that of a commercial bank. Resource mobilization Loans and investments

The sun rising over the five wavy lines in emblem symbolizes the dawn of a new era of progress and prosperity for the land of five rivers and hence for Pakistan. Further more the main objectives of the isolation of cotton flowers and the spikes of wheat in emblem is firstly to represent the fact that the economy of Punjab stands on the agricultural produce especially cotton and wheat and secondly to determine the emphasis which the bank is to place on development of Agro-based Industrial development. The Bank of Punjab mission is to become top performing banking group serving in Pakistan. To achieve this mission, it is guided by following objectives: Have the staff of the highest caliber. Provide the highest rate of return to shareholders by achieving good and profitable growth. To be perceived by the customers and step forward as the best in every operation.

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The Bank of Punjab Excel in the way of working of together to make decisions, manage change and get things done.

Major Share Holders

Provincial Government Foreign Funds Individuals Autonomous / semi/ firms 51.568% 0.489% 19.699% 28.275%

CORPORATE INFORMATION
Board of Directors Mr. Kamran Rasool Mr. Hamesh Khan Mr. Salman Siddique Sheikh Muhammad asif Mr. Mumtaz Khan Mr. Sikandar Mustafa Mian Muhammad Latif Mr. M. Shahis Abdullah Mr.Shahzad Ali Malik Mr. Gohar Ejaz Mr. M. Shahzad Sadiq Audit Committee Mr. Muhammad Shahid Abdullah Sheikh Muhammad Asif Mr. Gohar Ejaz Mr. Shahzad Ali Malik A.F Ferguson & co. Chartered Accountants
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Chairman Managing Director Director Director Director Director Director Director Director Director Secretary to the Board

Auditors

The Bank of Punjab

HEAD OFFICE
7- Egerton Road, Lahore Pakistan PBX 9200421

BRANCH NETWORK
The bank of Punjab has opened 247 branches as on 31-8-2003. the branches are well located in commercial and some residential areas, thus catering to the needs of business community and private individuals. All branches are air conditioned, well-furnished and equipped with modern facilities to provide services in a congenial atmosphere.

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The Bank of Punjab

The Bank of Punjab is working as a scheduled commercial bank with its network of 249 branches at all major business centres in the country. The Bank provides all types of banking services such as Deposit in Local Currency, Client Deposit in Foreign Currency, Remittances, Advances to Business, Trade, Industry and Agriculture. The Bank of Punjab has indeed entered a new era of science to the nation under experience and professional hands of its management. The Bank of Punjab plays a vital role in the national economy through mobilization of hitherto untapped local resources, promoting savings and providing funds for investments. Attractive rates of profit on all types of deposits, opening of Foreign Currency Accounts and handling of Foreign Exchange business such as Imports, Exports and Remittances, Financing, Trade and Industry for working capital requirements and money market operations are some facilities being provided by the Bank. The lending policy of Bank is not only cautious and constructive but also based on principles of prudent lending with maximum emphasis on security. As agriculture is considered as backbone of our economy the Bank of Punjab has introduced "Kissan Dost Agriculture

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The Bank of Punjab

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The Bank of Punjab

MAJOR DIVISIONS OF THE BANK OF PUNJAB

As for working is concerned the BOP is divided in to various divisions which are further divided in to departments. The major divisions are as follows: Operation Credit Finance Business development Research publication and manpower development Administration Audit and inspection

These all divisions are headed by General Managers.

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The Bank of Punjab

1)

Operation Division
It is concerned with the operational working in, general banking,

which is concerned with

the routine working of the bank. Any problem or

ambiguity arise in any branch working is then rectified and suggest for correction by this division. The decisions like commissions, technical procedures involved usually taken by this department.

2)

Credit Division
This division controls over all credit operations like sanction of

loans, IBP (Inland Bill Purchased) and also keep check over securities, mortgage, hypothecation or pledge. It also fix the rate of markup and other decisions concerning with credit.

3)

Finance Division
It controls the routine financial matters, the permission of special expenditures incurred in the branches and other such cases, The Daily position and HO extracts and daily send to this division by all the branches. This division not only estimates the\e profit and loss of every branch but also prepares over all income statement and balance sheet of the complete bank. It also keeps record of total deposits of the bank and then their classification in the form of loans into different sectors of economy.

4)

Business Development Division

It promotes the bank deposits and work for the over all

development of bank. Deposits are the lifeblood of any bank. Without deposits bank cannot perform any function of banking. This division fixes the deposit target of every branch by keeping an eye over the potential
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The Bank of Punjab customers in that area. It gives motivation to branches to achieve targets through different campaign and schemes like cash prizes and special increments. It publishes an ebullition in which those branches are encouraged which achieves their monthly targets.

5)

Research

Publication

And

Manpower

Development
This division is really working for a much betted cause. This is not only saving the heritage of glorious development and success of BOP but sets traditions, internal values and over all culture of the organization. It organize publication of all types of reports either annual or semi annual reports. It also arranges publications of a biannual magazine. A book about The bank of Punjab is also under publication which include the staff moral and internal values of the organization but also describe how this tiny plant grow into young tree only in few years of duration. Different courses and scholarships are arranged for the staff to give them betted opportunities in their future careers.

6)

Administration
It controls the administration problems like recruitment. Training

and internal transfers, leave procedures and certain other problems of staff. It organizes recruitment with the help of Officers Training Institute. It also controls over any problem arise during working in the branch, the internal conflict among employees in certain rare cases.

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7)

Audit And Inspection Division

This division maintains a good check on the over all working of

the branch. It arranges surprise auditor and frequent audit to rectify any type of irregularities in the functions of the branch working. It smoothes the work and clear all types of mistakes or any type of fraudulent. Surprise audit maintains a good check on the over all working and especially of the side of finance. The various departments working under different division are as follows:

Various Departments
1. O & M (Organization and Management) 2. Computer 3. Officer Training Institute 4. Shares Different chiefs control these all departments.

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The Bank of Punjab

PERSONNEL DEPARTMENT
The Main Personnel Department of The Bank of Punjab is in Lahore that is in the head office and it is called the administrative division. In the Administrative division. In the Administrative division all the record to the office are kept .The duty of the administrative division or the personnel department in head office is to make assessment for the requirement in head office is to make assessment for the requirement of manpower in each branch of the bank. The administrative division also decides whether the employees are selected within the bank or outside the bank. The general policy for employees welfare is also made the Administrative department.

Functions Of The Personnel Department

The following are the performed by the personnel department for the accomplishment of its policies and objectives. Recruitment Training Performance review Executive Training and development

Recruitment
The selection of the employee is very important decagon the management has taken. Bank recurrent policy is very strict, and mostly depends upon the ability of the candidate and personal observation of the top-level management. There is no quote system exist in the bank. Whenever
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The Bank of Punjab vacancies fall vacant bank makes advertisement in the newspapers and asked for vacant bank makes advertisement in the newspapers and asks for the application. All persons have fulfilling the following requirement are directly appointed as Office Grade III. 1. First Division in graduation 2. One first division in Inter or matriculation 3. Written test base only, no interview 4. Age not more then 25 years

Training
The newly hired employees generally starts as a clean slate on which nothing has yes been written. Good training is an art. The training policy of the personnel department is different for the New employee Existing staff For the newly selected candidates it is compulsory for them to get training . There is a separate acad3emy of the bank in Lahore, the Mall Branch which is called the training institute, the following procedure is adopt in the training program, Two month training in the academy One month job training Again one month training in the academy

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Performance Review
The primary value of the job descriptions evolution is to serve as the basic for the review of the individual performance in each job, each employee understands that what is expected from him. Personnel department may review of the officers by analyzing that. 1. 2. 3. 4. 5. 6. The task assigned to the officer is completed or not. The task completed with in the given time. The result of that task is favorable. Performance is comparable with the standard of the What is the achievement of the employee for meeting What methods are used for the completion of the task.

organization. the assigned task. All the above-mentioned tool are used for performance review. The management takes action in favour of the officer in case of the completion of the task, in shape of Increases the salaries of the employees Provides more higher training to the officer for more . Difficult task Other benefits provided to the employees. The management keeps all the records of the officers and check the performance trained. Management takes personal discussion with the employee.

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The Bank of Punjab If the employee is not satisfied with the evaluation, he is also allowed to talk with the management.

Executive Training Development

It is duty of personnel department to make successor management. For this purpose bank staff is growing a system and improvement in the quality of bank executive is made. Executive training program is conducting by the bank, because training may increase the knowledge and skills of an individual and thus it turns individual into true executive. Training can improve management techniques; it helps the management to make better decisions. Development on the other hand, has different connections in the growth of the inner person and his or her motivation. It is true that not only the training is important for the better manager but also the development of the manager. For explore the mind and talent of the junior officers, management motivates them by offering higher study at abroad.

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The Bank of Punjab

FIELD OF ACTIVITIES
A) Deposit Department
1.

OPENING OF NEW ACCOUNT

The opening of a new account is the establishment of customer banker relationship. By opening an account at bank, a person becomes a customer of the bank. Before a banker opens a new account , he should ascertain whether or not the person desirous of opening the account is a desirable customer. The banker should determine the prospective customers integrity, responsibility, occupation and the nature of the business by the introductory reference given at the account opening. Negligence in this informal preliminary investigation may result in serious consequences not only for banker concerned directly, but also for other bankers and the general public who may be affected indirectly.
2

. Account Of The Customer INDIVIDUALS ACCOUNT

An individual can open either PLS saving account or current account. He can open the account in any branch of the bank. When an individual ask the bank officer to open the account, the bank officer asks whether he wants to open PLS saving or Current Account. After preliminary investigation, application form is given to the individuals. The form contain many options for the operation of the account. Every new account holder is to be introduced by the one existing account holder. After completing the form the individual deposits the form to the concerned officer and deposits the initial amount to the cashier. The officer handling the application verify

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The Bank of Punjab the form and asks the customer to come next day if he requires a cheque book on the next day a cheque book is given to the customer, now a customer can handle his account freely.

SPECIMEN SIGNATURE
When an account is opened with a banker, the customer gives the banker a specimen of the form of signature which would appear on all his cheques to express the authority for the payment of cheque drawn on his banker. This specimen is taken generally on a card specially designed for this purpose and rules for the customers full name and account number are entered on it. If the banker has reasons to doubt the genuineness of a signature, he should either get it confirmed for his satisfaction or return the cheque with the remark signature differ.

PROBLEM IN INDIVIDUALS ACCOUNT

a) b) c) Death of the customer Lunacy of the customer Insolvency of the customer

JIONT ACCOUNT
There are the accounts of two or more persons who are neither partners nor trustees. When such account is opened, it is necessary that the banker should obtain clear directions as to whether one or more of them shell operate upon the account.

PARTNERSHIP ACCOUNT
This account is to operated according to instruction given at the time of opening the account. Every partner in a firm has an implied power to bind his co-partners by drawing and endorsing of cheques, the drawing, accepting and endorsing to bills of exchange and making and endorsing of

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The Bank of Punjab promissory notes. A partner has an implied authority to countermand payment of any cheque drawn on the firms account and the banker is bound to comply with the instruction issued by that partner. In addition the account opening form duly signed by all the partners, and the specimen signature card containing the specimen signatures of the persons authorized to operate the account, a partnership letter, duly signed by all the partners in their personal capacity is also obtained, wherein all the partners assumes the liability of the firm to the bank as joint and several. This letter is obtained from both registered and non-registered firms, and is not a substitute for the partnership deed in a registered firm.

COMPANYS ACCOUNT
The account of the company is opened on the resolution of Board of Directors which nominates the persons authorized to operate upon the account. The banker must take the specimen signature of the authorized persons and allowed the operation o0n the account under that signature as long as the authority is not terminated. When banker received a notice of death retirement or dismissal of the authorized person he should stop the operation on the account and wait for a fresh resolution authorizing another person. however the cheques signed by the authorized person before death ,retirement or dismissal should be honoured by the banker, because they were valid instruments before the termination of his authority, any doubt or suspicion should be referred to the company. The banker may open the account of newly floated public limited company without certification of commencement of business in order to receive the amount of issued capital from the prospective share holder but should not allow any withdrawal from the account till the certification of commencement of business copy is

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The Bank of Punjab submitted to him. failure to obtain this certificate necessities the refund of the amount to the prospective shareholders by the promoters.

Types Of Deposits
The following types of deposits are offered to the general public in The Bank of Punjab A. PLS saving bank deposits B. PLS term deposits C. Current deposits D. Short notice term deposits E. Special deposits

A. PLS SAVING BANK DEPOSITS

On PLS saving bank deposits banks pay profit which are not prefixed and is announced normally in and January zakat@2.5% is deducted from PLS saving bank deposits on first day of ramzan. A withholding tax @10%is also recovered from the profit paid on PLS saving bank deposits account. minimum amount to open PLS saving account is Rs.500/-

B. PLS TERM DEPOSIT

Banks also receives deposits for a fixed term. They are cashable on the expiry of terms along with the profits announced by the banks for that term. The PLS TDRs can also be cashed before the expiry of terms but no profit will be paid for the remaining period. The banks will deduct zakat @ 2.5% and withholding tax @ 10% on the profits. PLS term deposits are usually for the period of

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The Bank of Punjab 3 months 6 months 1 year 5 years 1.25% 1.50% 1.75% 2.5%

C. CURRENT DEPOSITS
Business community keeps their deposits in current accounts. They can withdraw any amount standing to their credit in current deposits by cheques without serving any notice to the bank. Current deposit are also known as demand deposits. The bank does not pay any profit on such accounts but it recovers incidental charges if a balance in the current account is below the desired level. Minimum amount to open account is Rs. 1000/-

D. SHORT NOTICE TERM DEPOSITS (SNTD)

The period of this deposit range from 7 to 29 days and over. The profit is calculated on daily product basis. Likewise PLS, TDR, Zakat is deducted @ 2.5%. If fall within Zakat period and withholding tax is deducted @10% on profit paid.

Books Relating To Customers

i. PAY IN SLIP
When money is to be deposited in the bank, the pay in slip is to be filled. The object of this book is to provide the customer with the banks acknowledgment for receipt of money to be credited his account.
ii.

CHEQUE BOOK
A cheque book contains a number of cheques which is given to a

customer upon written request. It enables a customer to make withdrawal from his account or made payment to various parties by issue of cheque.

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The Bank of Punjab

iii.

PASS BOOK
Pass book is a copy of the customers account as it appears in the

book of the bank. Balance is recorded by the clerk in his book.

B.

Issuance Of A Cheque Book.

Cheque book shall be processed in the following manner: 1. Leaves of cheque book are counted. 2. Name and account number of the party written on cover and requisition slip. 3. Account number entered on all leaves of the cheque book. 4. Name and account number entered in the cheque book issue register against the particular cheque series. 5. Deposits incharge will sign in the cover of the cheque book, the registration slip and initial in the cheque book issuance register. 6. All cheque leaves are stamped the name of the branch.

CHEQUE
The definition of a cheque makes it clear that there are three parties to it, drawer, Drawee and payee. Drawer is the person by whom or by whose authority the cheque is drawn. You can say the account holder. Drawee is party which acts upon the order of the drawer and pays the money which is always a banker. Payee is the person to whom or to whose order the money is to be paid.

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The Bank of Punjab

PAYMENT OF CHEQUES
The primary function of a banker is to receive deposits from public on different accounts with the obligation to repay them either on demand or after the expiry of a fixed period. For with drawals from current, savings, bank RF and CF accounts constituents draw cheques, which are presented for payment in one of the following ways: 1. Over the counter for cash payment. 2. Through the clearing where clearing arrangements exist. 3. Over the counter for credit to another persons account with the bank. As paying banker can claim protection only when they make the payment of cheque drawn upon them in due course are: 1. The payment should be made in accordance with the apparent tenor of the instrument which means what appears on the face of the instrument to be intention of the parties. 2. The payment should be in good faith and without negligence and 3. The person receiving the payment should be in possession of the instrument under circumstances which do not lead to believe that such person not authorized to receive the amount.

Terms And Conditions For Cheques 1. FORM CHEQUES

The instrument should be drawn in accordance with the legal definition o a cheque. It should be dated and fulfill the following requisites:

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The Bank of Punjab 1 Unconditional order

1. On a specific banker only 2. A certain sum of money only 3. Payee to be certain. 4. Payable on demand. 5. Signed by the drawer or by his authorized person

2.

DATE
The cheque presented for payment should not be a postdated of STALE one. A postdated cheque is one dated later than the date of issue. It should not be paid for the following reasons: 1. The customer may stop payment before the due date of the cheque. 2. The banker has no right to debit customers account before its due date. 3. If banker pays a postdated cheque in case the customer dies or becomes insane or insolvent before the cheque is due for payment then he shall have to bear away loss that may arise out to his action. 4. The banker will lose the statutory protection granted to him for payment in due course.

3. SUFFICIENCY OF FUNDS
Sufficient funds must be available in the account to meet the withdrawal

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The Bank of Punjab

4.

AMOUNT The amount should be stated in words and figures on the faces of a cheque. If there is any difference between the two, a banker can pay the amount given in words. But it is upon the banker either he offers the smaller amount in some instances or returns the cheque with the remarks amount in words and figures differs.

5.

MUTILATED CHEQUE
A cheque torn or worn not by the customer in such a way as to give sufficient evidence of his intention to cancel, it is called a mutilated cheque. Such a cheque should be returned unpaid by the banker marked mutilated cheque.

6.

MATERIAL ALTERATION
Cheque presented for payment should not have any material alteration, if there is any that should be duly confirmed by the drawer, because any material alteration made without his consent makes the cheque void. If the banker pay such a cheque he does so at his own risk.

7.

NO LEGAL BAR
The cheque should not be legally barred for payment in any case.

8.

PRESENTATION DURING BANKING HOURS

The cheque should be presented for payment during the usual banking hours. In case a banker pays cheque outside those hours, he exceeds

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The Bank of Punjab his authority and may be liable for any damages suffered by his customer as the result.

CLEARING DEPARTMENT
All banks collect cheques on behalf of their customers and system of collecting cheques is called clearing of banks. A clearing house is a place where representative of all banks of the city get together and settle the receipt & payment of cheques drawn on each other.

Function Of Clearing Department

1. 2. To accept transfer & clearing cheques from the customers of To collect amount of cheques drawn on members of the the branch &arrange their collection. local clearing house sent for collection by The Bank of Punjab

Types Of Cheques Collected By Clearing Department

1. TRANSFER CHEQUES
The Cheques which are collected and paid by the same branch of bank.

2.

TRANSFER DELIVERY CHEQUES

The Cheques which are collected and paid by two different branches of a bank situated in the same city.

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The Bank of Punjab

3.

CLEARING CHEQUES
The collecting bank can receive the amount of cheque from the paying bank from the clearing house on the behalf of the customers account.

REMITTANCE DEPARTMENT
It is very important department of the bank. Remittance is a transfer of funds from one place to another or from one person to another or to the same person.

Modes or ways of Transfer

The following are basis modes in which funds are transferred. 1) 2) 3) 4) 5) 6) that. Demand Draft Telegraphic Transfer Mail Transfer Traveller Cheque Pay order / Pay slip Call Deposit Receipt Bank provides these service to its customers and also charge commission for

DEMAND DRAFT
It is also called banker instrument. It is an instrument which is issued by banker at the request of purchaser which is drawn on another branch of the same bank.

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The Bank of Punjab Demand draft is just like a cheque basic different is that it is always drawn on the branch of same bank where as cheque can be drawn on any bank. Just like a cheque demand draft may be opened or crossed. It is negotiable instrument because it can be endorsed from one person to another.

DEMAND DRAFT ISSUANCE REGISTER

Whenever any draft is issued they are recorded in draft issuance register. These drafts are given control number viz no. of draft issued to particular branch.

PAYMENT OF DEMAND DRAFT

It usually happens that when invoice for draft reaches at the Drawee branch then the payment is made on draft. If the draft is crossed it is deposited in customer account and payment is made to customer after passing 2 or 3 days of clearing process.

TREATMENT FOR LOST DRAFT

If customer loses the draft, he will be approach to issuing bank. Bank will ask the customer to fill the application form, then issuing bank will inform paying bank about the lost of draft. Paying bank after receiving this information will mark stop payment on its draft payable register and send confirmation to issuing bank about stop payment

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The Bank of Punjab

2. TELEGRAPHIC TRANSFER
It is another mode of transfer. In demand Draft payment is made on the presentation of that draft. It is time consuming procedure. In case of T.T. no such requirement is required by paying bank. The customer must have account in paying branch. When the issuing bank receives the payment for remitter, bank makes telegraphic message through fax or telephone message. It is called coded or tested message. This message is decoded and then payment is made to remitter. In case of T.T, there is only code no. these control no. are called T.T. numbers.

3.

MAIL TRANSFER
It is also one of the mode of remittance and is used foe transferring money from one place to another. The person desirous to remit money through MT shall fill an application form called MT application form. The applicant shall provide all the necessary information to the bank. The remitter of the funds signs this application form. The officer gets all the bank charges and amount from the customer and issues M.T. in this case no instruction is handed over to the remitter. The message for the payment is conveyed to the paying branch through inter branch credit advice, payment is made to customer.

4.

TRAVELLER CHEQUE
It is just a shape of demand draft. The difference is that it is not

drawn on specified branch. It can be drawn on any branch of same bank. The paying bank has to be verified the signature and after verification payment is made.

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5.

PAY ORDER
It is used to secure the payment. In case of payorder issuing and

paying branches are same. Payorder can be endorsed if it is not crossed. The amount of payorder together with banks charges is paid by the purchaser in cash or by cheque or on the letter of authority. Payorder may be presented for payment by the payee either over the counter for cash payment or the payee may transfer credit to his account. The person who make the payorder cannot stop payment. The person in whose favour the pay order is made can release payment of payorder. Payorder is valid for six months.

6.

CALL DEPOSIT
ISSUANCE OF CDR The following is the procedure for the issuance of a call deposit

receipt: 1. 2. 3. 4. Deposit is acceptable in cash or through cheque and processed in the books of the bank accordingly. Depositor / purchaser is required to make a written request for the issuance of a CDR on banks prescribed form. In addition to the amount of the call deposit commission at a flt rate or Rs. 10 is also to be received from non-account holder. After the receipt of that amount CDR is to be issued. The receipt also contains the following information: a) b) c) Name of issuing branch Printed serial number of the receipt. Date of issue.

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The Bank of Punjab d) Name of beneficiary / payee along with the made of depositor / purchaser. 5. In case deposit is made by the purchaser in favour of government/ semi government department. Receipt is issued in the name and designation of the concerned official of the department. Account of the purchaser/ Tenderer. 6. CDR must be protect graphed either through cheque writer/ protectographer or to be hand written in ink. 7. CDR must be signed by two duly authorized officers of the branch.

ADVANCES
Different types of advances have been listed hereunder: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Demand Finance Staff Finance Cash finance Running Finance Small Finance Finance Against Imported Merchandise Agriculture Finance PLS Trust Receipt Housing Finance Inland Bills Purchased Musharika Modaraba Lease Finance

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The Bank of Punjab 14. 15. 16. 17. 18. 19. 20. 21. Qarza- e Hasna PLS BillsDiscount / Purchased Foreign Bills Negotiable Under L/C House Building Loan Inland Bills Negotiable Under L/C Kisan Dost Finance Green Tractor Scheme Dairy Forming Scheme The Bank of Punjab D.G.Khan branch is presently giving following types of facilities.

Running Finance
Running finance is normally advanced to small business men and the small income people for their day to day business requirements. This loan is granted against mortgage of immovable property and hypothecation of stocks in trade. The rate of mark up on this loan is 46 PS/DAY/ 1000 or flexible as per party credit worthiness. The account of this finance is opened like current account and cheque book is issued to the client. Deposits and withdrawals are allowed in like manner. This loan is disbursed normally for one year with the provision of renewal at the time of expiry of one year.

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Cash Finance
Cash finance is given to big industrial concerns. Mainly seasonal loans are disbursed to agricultural input consuming industries like sugar mills, cotton ginning factories, rice hushing and oil mills etc. This loan is given against the mortgage of immovable property and pledge of raw and finished goods. The term of loans is fixed according to the season of a particular commodity.

Agricultural Finance
The essence of the scheme was to over come the traditional difficulties being faced by the small framers in availing credit from the financial institutions &banks. The bank credit operation includes selections on merit prudent leading, vigilant supervision and regular coordination between the bank and the borrowers.

Maximum Finance Limit

All the finances are given on merit for each case after assessing genuine requirement of the farmers for agri inputs based on their existing and future cropping plan of their lands at an approximate rate as per following standard. 1. Per acre 8000/- approximately but not exceeding than 200000/- per crop year or 25 acre. 2. 80% of value of the agriculture land of the farmer as per his agriculture passes book, which ever is less.

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Mode Of Finance
The selected farmers who qualify for the scheme and are approved for the purpose of finance will be given a special chequebook of Kisan Dost Account, along with a letter for the maximum amount he can draw from this account. MARK UP All finances will be allowed at commercial mark up rate of financing i.e. 0.46 to 0.23 paisa. It has double edge benefits i.e. all times availability of credit to the farmers and their motivation for developing their saving habits through bank. PURPOSE All loans given by the BOP to farmers for meeting their short term agriculture production requirements specified below would be treated as agriculture finance under the scheme. a) Seed b) Fertilizer c) Pesticides The account of client is treated as current demand account. Regional chief approved the finance with the help of branch manager.

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The Bank of Punjab

TRAINING PROGRAMME
Branch Introduction
To acquaint the students with the real management process, one of the requirements of our M.Com course is to complete 8 weeks Internship Programmed at a reputable organization. This effective programmed helps the students to see the practical relevance and acceptability of various tools and theories of business administration learned during their M.Com course. For my internship programmed, I selected The Bank of Punjab D.G.Khan Branch Distt. D.G. Khan.

Personnel Of Branch
On the first day of joining the branch, I was introduced with the staff members of the branch, with whom I had to work. These staff members are; Mr. Burhan-ud-din Mr. Namatullah Mr. Saeed Ullah Shah Mr. Ahmad Nawaz Mr. Imtiaz Ahamad Mr. Syed Asif Ali (O.G.I) Manager (O.G.II) (O.G.II) (O.G.II) (O.G.II) (C.O)

Internship Report

The Bank of Punjab

OTHER STAFF
(Including Security guards, Peon and messenger) Total no. Of employees 10

DETAIL OF BRANCH DEPOSITS

The branch provides the facilities of PLS saving bank account and current account. It also gives loans to different persons. Followings are the details of above. 1. No. Of PLS Accounts 2. No. Of Current Accounts 3680 1370

MANAGEMENT OF THE BRANCH

I observed the manager pf The Bank of Punjab D.G.Khan branch, Distt. D.G.Khan with whom I was associated, adopted the following Management styles: Rensis Likert has developed certain ideas & approaches important in the field of management. He sees an effective manager as strongly oriented to subordinates, relaying on communication, keep all parties working as a unit. The Manager of The Bank of Punjab have adopted the system 4 of Likert which is as follows: Manager has complete confidence in subordinates in all matters, they always get ideas and opinions from subordinates and constructively use them. They also give economic rewards on the basis of group participation and appraising progress towards goals. They encourage division meaning

Internship Report

The Bank of Punjab throughout the organization and cooperate among themselves and with their subordinates as a group.

WORK DONE BY ME AT THE BRANCH

Major activities performed during my internship program are as follows:

Account Opening Department

In this department, I gain the practical knowledge about opening account. This department deals with opening current and saving account for its customers opening current/saving accounts can categorized as following: Individual Joint account Partnership account Company Trust Staff Others

Opening An Account
In order to open an account, first of all the customer has to fill a form prescribed by the bank. The person is required to bring some reference or introduction for opening the account. Introducer may be the person who has any account with BOP.
Internship Report

The Bank of Punjab Some important information regarding introducer e.g. the name and account number of the introducer is written of the space provided on the specimen signature card. Then in order to find out whether he is a true introducer of not, a letter is sent to him thinking him for this introduction so that anything wrong may come into notice. There are different requirements for different types of accounts and account-holders.

Deposits
The procedure undertaken upon receiving deposits from the customer is as follows: i. ii. iii. Examining the deposit slip to ensure that the name and the account numbers are clearly indicated. Counting the cash/cheques and agree the total with the total with the amount on the deposit slip. After that the pay-in-slip is validated for cash transaction/transfer/clearing transfer as appropriate before the counterfoil is handed over to the customer. iv. Cheques signed by directors, partners or employees of a company, drawn in favour of themselves and credited in their account in the bank are to be scrutinized.

Withdrawals
Cheques can withdraw amount. The withdrawals can be made only at the branch where the account is maintained.

Internship Report

The Bank of Punjab The officer under his full signature authorizes all cash withdrawals. No third party withdrawal is permitted. In current account, the bank does not offer any interest. We can deposit or withdraw any amount during banking hours.

Issuance Of Cheque Book

The accountholder requests for the new chequebook by presenting the requisition slip along with the authority letter to the concerned office. His signatures are verified before giving him a new cheque book. The presence of the accountholder is compulsory to get a new cheque book. But if he sends a third person to get his cheque book then the procedure is as follows: An authority letter is given to the third party by the accountholder. i. The account holder verifies the signature of the third person on that authority letter. ii. The bank officer gets the signature of that third person to confirm whether he is the same to whom the accountholder has sent. iii. The bank issues the new cheque boom and the bank keeps authority letter.

Clearing Department
In this department, I have worked for two weeks and prepared the clearing myself. My responsibility was to receive all the clearing cheques and to make a schedule of these cheques after making an entry in the inward or outward clearing registers and then to submit these schedules along with the cheques schedules along with the cheques to the main branch. Main
Internship Report

The Bank of Punjab branch receives the cheques from all of its branches and makes the lots of these cheques again. Main branch send these cheques to the State Bank of Pakistan where a clearinghouse exists. In this clearinghouse the representatives receive their cheques and go back to their banks main branch. Then main branch sends these cheques to their relevant branches where the validity of these cheques are verified and the accounts of the relevant clients are affected. Then an advice is sent to the issuing bank that the cheque is honored. In case, if the cheque is dishonored a memorandum is issued to the bank on which various reasons of dishonor are printed and one or more reasons are marked due to which the cheque is dishonored. The statement of clearing was submitted before 1.00 P.M. daily. The whole procedure of clearing is completed within 2 days.

Types Of Clearing
Clearing department deals with the two types of clearance.

1. INWARD CLEARING
When the cheques of other banks are deposited in our bank these cheques are verified from the issuing bank first after due verification these are credited into the account holders account. This is called inward clearing.

2.OUTWARD CLEARING
When the cheques of our banks are deposited in other banks and those banks are send these cheques to us for verification. It is called outward clearing. After due verification we debit the account of client with same amount.

Internship Report

The Bank of Punjab

REMITTANCES DEPARTMENT
I worked in this department for one week. This department deals in transfer of money from one place to another or country by: 1. Demand Drafts 2. Mail transfer 3. Telegraphic Transfer In this department internees are advised only to observe the working of transfer of money from one place to another place or country by the above modes of transferring money. During my stay in department, I observed that how demand draft was issued. The procedure is as follow. First the bank receives a written request from the customer to issue a bank draft. The written request is either in banks standard form or separate paper signed by the applicant enclosed with cash or cheque covering the amount of the draft and other charges of the bank. While issuing a bank draft it is necessary that the draft should be free from alternations. All the details must be written clearly in ink. After issuance a demand draft it is handed over to the applicant and its advice containing the particulars of the draft is sent to drawer branch with its necessary information and payment of the draft is made on its presentation.

Bills Collection Department

I spent one week of my training in bills collection department. Here I collected utility bills like gas, electricity, water, and telephone etc. syed Asif Ali (C.O) is the incharge of this department.

Internship Report

The Bank of Punjab

FINANCIAL STATEMENT
The Bank of Punjab Balance Sheet

Internship Report

The Bank of Punjab

The Bank of Punjab Profit & Loss Account

Internship Report

The Bank of Punjab

The Bank of Punjab Cash Flow

Internship Report

The Bank of Punjab

FINDINGS AND RECOMMENDATION

Findings
During internship training period, I had found the following weaknesses: B) Some employees in the bank just do the same job, they become the master of practicing job but they know almost nothing or lose their knowledge about other jobs. C) The bank pays high profits to its customers and provides excellent services but there is lack of publicity of its services on the part of the clients. D) E) The pay scale of The Bank of Punjab employees is less than other banks which is an indication of discouragement among employees. The employees have not access to higher authorities and a large hierarchy of persons is involved. This creates frustration in employees in solving their problems. F) The size of almost all branches of The Bank of Punjab is very small. It create difficulty for the customers as well as staff members for proper dealings which always gives a congested atmosphere.

Recommendations
It was a interesting experience to do internship in The Bank of Punjab. The staff was highly cooperative and due to their help I learned big deal about modern banking. I suggest that such an internship program is highly integrative for the student of commerce / business education. So that the student should
Internship Report

The Bank of Punjab be acquired with the knowledge of the practical world. I do summarize that it would be a great help to me in selection of job or future field of work. Here I am putting dome suggestions, which will enable the Bank to compete with other banks, more effectively and more efficiently. 1. The employees should be assigned jobs for specific period and then they should shifted to other department so that can gain knowledge of other jobs. 2. The Bank of Punjab should properly advertise and communicate to the public the services provided by it so that more customers will be attracted. 3. 4. 5. The Bank management should give more incentives and pay scale of officers should be revised and improved. In order to enter fast moving world, the bank must be fully equipped with advanced technology. The size of all branches must be enhanced and working conditions should be improved. It will increased the productivity and efficiency of the employees and the bank will get more benefits after some expenditure. 6. Some people in the bank are over burdened with work. For this, the work should be divided equally and in some cases more employees should be employed. 7. In main cities the bank should start cash counter as well as ATM facilities to compete with other banks.

Internship Report