The Bank of Punjab

Rehan Kabir Roll # 09012054-012 University of Gujrat October 2010

The Bank of Punjab

Internship Report On the Bank of Punjab

Internship report submitted to the Assistance director of academic in partial fulfillment for the requirement of the degree of masters in commerce.

October 2010

The Bank of Punjab

PREFACE

Two months internship program is an integral part of M.Com semester program, which carries three credit hours 100 marks towards the results. Students are required to submit an internship report and take viva voice examination, and would not be granted M.Com semester degree unless they have satisfactorily completed the internship. The purpose of this training is to prepare M.Comers in a manner that they should have practical knowledge of their courses of studies & the practical aspects, to be beneficial for their future. I underwent the training at the BOP Small Industrial Estate Branch (G. T road branch) Gujrat I am thankful to the internship in charge, the staff members of this branch in general and in particular and especially to MR. Amjad Farooq (Manager), who gave me full opportunity to learn all the transactions of the bank and taught me how to work in the practical field. He also gave continuous and proper support and help in preparing this internship report.

The Bank of Punjab

Dedication

I dedicate this report to my family, teachers, Friends and to the dedicated and cooperative staff of The Bank of Punjab.

The Bank of Punjab

The Bank of Punjab

Executive summery
To interpret my skills and educational knowledge of Accounting I have done my internship in Bank of Punjab Gujrat and to know how I will work in financial institutions and among various types of people have different attitude. The objective of this Internship was to explore the issues relating to Finance and to find out problems regarding the theoretical concepts with practical experience working in an organization during the internship and study the system of Bank of Punjab. There are many possible improvements, which we can make positive changes in the system. The report based on my two months internship program in Bank of Punjab. The methodology reported for collection of data is primary as well as secondary data. The biggest source of information is my personal observation while working with staff and having discussion with them. The report summarizes description of the BANK OF PUNJAB, theory and practices adopted by BANK OF PUNJAB and financial position of BANK OF PUNJAB, its analysis and at the end concluding remarks and suggestions are given for improvements. It was too much difficult for me to describe the functioning of such a vast organization within the limits. In spite of this, I tried my best to describe. Finally, for any all too fallible errors, omissions and shortcomings in the writing of the report only I am responsible, for which I hope that all concerning regards of this report will forgive us. Rehan Kabir M.COM (B)

The Bank of Punjab

ACKNOWLEDGEMENT
All praises and thanks to Almighty Allah, the Lord and creator of this universe by whose power and glory all good things are accomplished. He is also the most merciful, who bestowed on me the potential, ability and an opportunity to work on this report. I owe our profoundest thanks to my teachers, I feel blessed to have them as my teacher, whose strength and wisdom I learn up to and no doubt, experience of work with them is far better than I believed possible. I am also grateful to Mr.Amjad Farooq (branch manager), Mr. Javed Iqbal (manager operation), Mr.Zahid (officer), Mr. Tayyab (A.C.O), and Mr. Naveed Butt (cashier) for their continued guidance and encouragement. Last but not the least; ordinary words of gratitude do not encompass the true love and guidance extended to our loving and caring parents. Their constant interest, prayers and encouragement have been a very strong support for me and have enabled me to finish our course work.

The Bank of Punjab

Table of Contents Chapter # 1 INTRODUCTION TO THE BANKING SECTOR 1. INTRODUCTION 10 1.1 BANKING HISTORY 10 1.2 SCOPE 11 1.3 Purpose 11 1.4 Role of Banking 12 SUMMARY 13 Chapter # 2 BANKING IN PAKISTAN INTRODUCTION 14 2.1 BANKING SECTOR IN PAKISTAN14 2.2 ROLE OF BANKING IN PAKISTAN...15 2.3 FUNCTIONS OF BANKS IN PAKISTAN15 2.3.1 Receiving deposit ....15 2.3.2. Advancing Loans: 16 2.4 BANK IN WHICH I WAS WORKING 16 SUMMARY ..17 Chapter # 3 INTRODUCTION TO THE BANK OF PUNJAB INTRODUCTION 18 3.1 HISTORY OF THE ORGANIZATION 18 3.2 FUNCTION PROVIDED BY BANK OF PUNJAB 18 3.3 NUMBERS OF DEPARTMENTS 19 3.3.1:- CASH DEPARTMENT 19 3.3.2:- DEPOSITS DEPARTMENT 19 3.3.2.1 Saving Deposits 20 3.3.2.2 Current or Demand Deposits..20 3.3.2.3 Fixed or Term Deposits...20 3.3.3:- ACCOUNT OPENING DEPARTMENT..21 3.3.4:- REMITTANCE DEPARTMENT21 3.3.4.1 Payment Order (PO)22 3.3.4.2Demand Draft (DD) .22 3.3.4.3Mail Transfer (MT) .22 3.3.5:- BILLS DEPARTMENT .22 3.3.6:- CLEARING DEPARTMENT .23 3.3.7:-CREDIT DEPARTMENT .24 3.3.7.1 Agriculture Loans .....25 3.3.7.1 Consumer Loans .25 3.3.8:-FOREIGN EXCHANGE DEPARTMENT .26 3.4:-BRANCHES .26 3.5:-CURRENT STAFF .27 3.5.1:- Current staff of the branch .27 3.5.2 Number of employees .28 3.6 CRITICAL ANALYSIS OF THE BRANCH .28

The Bank of Punjab

3.6.1 Risk Framework .28 3.6.2 Risk Faced By the Bank 28 3.6.2.1 Security System: 28 3.6.2.2Employees honesty: 29 3.6.2.3Management Risk: 29 3.6.3 Loaning System 29 3.6.4 Communication system 30 3.6.5 Moral of staff 30 3.6.6 Physical facilities 30 3.7 PERFORMANCES 30 SUMMARY 31 Chapter # 4 Branch policies strategies and success 4.1Policies of the bank of Punjab 32 4.2Purpose of the policy 32 4.3 Strategies of the branch 32 4.4 Success 33 Summary 33 Chapter #5 ANALYSIS 5.1 SWOT ANALYSIS 34 5.1.1 STRENGTHS ........34 5.1.2WEAKNESSES 34 5.1.3 OPPORTUNITIES: ........35 5.1.4 THREATS 35 5.2 RATIO ANALYSIS 35 5.2.1) Return on Equity .......35 5.2.2) Return on Investment ........36 5.2.3) Total Assets Turnover Ratio 36 5.2.4) Profit before Tax to Total Income Ratio..37 5.2.5) Profit after Tax to Total Income Ratio ............38 5.2.6) Debt-to-Assets Ratio ....38 5.2.7) Debt-to- Equity Ratio ....39 5.2.8) Earnings Per Share ....40 5.2.9) Return on Deposits Ratio ....40 5.2.10) Interest Expenses to Deposits ........41 5.2.11) Interest Income to Advances Ratio ........42 5.3 WHAT I PERFORMED IN THE BANK DURING INTERNSHIP PERIOD: ...42 5.4 What I have learned at Internship ...44 Chapter 6 Conclusion 6: FINDINGS AND RECOMMENDATION 47 6.1 Findings ...47 6.2 Recommendations...47 Reference and sources used ...48

O er at in g G r a d e I

The Bank of Punjab

Chapter # 1 INTRODUCTION TO THE BANKING SECTOR

1. INTRODUCTION
While walking in the streets of any town or city you might have seen some signboards on buildings with names-habib Bank, Punjab National Bank, State Bank of India, United Commercial Bank, etc. What do these names stand for? Did you ever try to know about them? If you enter any such building, you will find some kind of a business office. You will see some employees sitting behind counters dealing with visitors standing in front of them. You will find that some are depositing money at one counter while some are receiving money at another counter. Behind the counters in the office, you will see tables and chairs occupied by officers. On one side of the office, you will also see a chamber (small partitioned room) where the manager is sitting with papers on his table. This is the office of a Bank. Let us know in detail about banks and their activities. (Banking, 2010)

1.1 BANKING HISTORY

A simple form of banking was practice by the ancient temples of Egypt, Babylonia, and Greece, which loaned at high rates of interest the gold and silver deposited for safekeeping. Private banking existed by 600 BC and was considerably develop by the Greeks, Romans, and Byzantines. Medieval banking was dominated by the Jews and Levantines because of the strictures of the Christian Church against interest and because many other occupations were largely closed to Jews. The forerunners of modern banks were frequently chartered for a specific purpose, e.g., the Bank of Venice (1171) and the Bank of England (1694), in connection with loans to the government; the Bank of Amsterdam (1609), to receive deposits of gold and silver. Banking developed rapidly throughout the 18th and 19th cent., accompanying the expansion of

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industry and trade, with each nation evolving the distinctive forms peculiar to its economic and social life. (history-of-banking-and-finance,2010)

1.2 SCOPE
Exposure to worldwide competition and deregulation in financial sector has led to the emergence of better quality products and services. Reforms have changed the face of banking and finance. The banking sector has improved manifolds in terms of capital adequacy, asset classification, profitability, income recognition, provisioning, exposure limits, investment fluctuation reserve, risk management, etc. (Financial-and-insurance-sector Indian articles, 2010)

1.3 PURPOSE
Banking business providing financial services to consumers and businesses. The basic services a bank provides are checking accounts, which can be used like money to make payments and purchase goods and services; savings accounts and time deposits that can be used to save money for future use; loans that consumers and businesses can use to purchase goods and services; and basic cash management services such as check cashing and foreign currency exchange. Four types of banks specialize in offering these basic banking services: commercial banks, savings and loan associations, savings banks, and credit unions. A broader definition of a bank is any financial institution that receives, collects, transfers, pays, exchanges, lends, invests, or safeguards money for its customers. This broader definition includes many other financial institutions that are not usually thought of as banks but which nevertheless provide one or more of these broadly defined banking services. These institutions include finance companies, investment companies, investment banks, insurance companies, pension funds, security brokers and dealers, mortgage companies, and real estate investment trusts. This article, however, focuses on the narrower definition of a bank and the services provided by banks in Canada and the United States. (For information on other financial institutions, see Insurance; Investment Banking; and Trust Companies.)Banking services are extremely important in a free market

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economy such as that found in Canada and the United States. Banking services serve two primary purposes. First, by supplying customers with the basic mediums-of-exchange (cash, checking accounts, and credit cards), banks play a key role in the way goods and services are purchased. Without these familiar methods of payment, goods could only be exchanged by barter (trading one good for another), which is extremely time-consuming and inefficient. Second, by accepting money deposits from savers and then lending the money to borrowers, banks encourage the flow of money to productive use and investments. This in turn allows the economy to grow. Without this flow, savings would sit idle in someones safe or pocket, money would not be available to borrow, people would not be able to purchase cars or houses, and businesses would not be able to build the new factories the economy needs to produce more goods and grow. Enabling the flow of money from savers to investors called financial intermediation, and it is extremely important to a free market economy. (Banking services, 2010)

1.4 ROLE OF BANKING

Banks provide funds for business as well as personal needs of individuals. They play a significant role in the economy of a nation. Let us know about the role of banking. It encourages savings habit amongst people and thereby makes funds available for productive use. It acts as an intermediary between people having surplus money and those requiring money for various business activities. It facilitates business transactions through receipts and payments by cheques instead of currency. It provides loans and advances to businesspersons for short term and longterm purposes. It also facilitates import export transactions. It helps in national development by providing credit to farmers, small-scale industries and Self-employed people as well as to large business houses, which lead to balanced economic development in the country.

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It helps in raising the standard of living of people in general by providing loans for purchase of consumer durable goods, houses, automobiles, etc. (Role of banking, 2010)

SUMMARY
Banking business provides financial services to consumers and businesses. Four types of banks specialize in offering these basic banking services: commercial banks, savings and loan associations, savings banks, and credit unions. This article, however, focuses on the narrower definition of a bank and the services provided by banks in Canada and the United States. (For information on other financial institutions, see Insurance; Investment Banking; and Trust Companies.) Banking services serve two primary purposes. First, by supplying customers with the basic mediums-of-exchange (cash, checking accounts, and credit cards), banks play a key role in the way goods and services are purchased.

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Chapter # 2 BANKING IN PAKISTAN

INTRODUCTION
A system of trading in money, which involved safeguarding deposits and making funds available for borrowers, banking developed in the middle Age in response to the growing need for credit in commerce, agriculture, and industrial sector in Pakistan. To grow these sector banks in Pakistan provides short term and long-term loans to boost the economy of Pakistan. The purpose of banking in Pakistan to facilitate the investment and hold personal savings for the circulation of money for that reason banks open the saving account and give the profit to that account holder according to the policy of state bank. (Banking , 2010)

2.1 BANKING SECTOR IN PAKISTAN

Before independence, the financial sector was in the hands of foreign banks some of them were British by origin. The oldest bank operating from 1883 in this part of the world was the Chartered Bank while another bank namely the Grind lays Bank that was also working simultaneously from 1883. In order to expand its business operations, the Grind lays acquired other small banks and merged them into the business of Grind lays. For example, Allied Bank, National Bank of India etc was merge into Grind lays Bank. Among the contemporaries, Imperial bank of India was the largest Indian Bank that had started its operations in 1919 which was discharging the role of a commercial banks as well as the Central Bank for India until an independent Central Bank i.e. Reserve Bank of India was establish in 1935. However, since the Imperial Bank had the largest network of its branches all over India, it continued to play its role as a subsidiary of the Reserve Bank of India. In the Muslim majority, areas, which were later on, became the part of Pakistan, small

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branches of Indian banks were operating and soon after creation of Pakistan, they shifted their branches and headquarters to India. (Banking system in Pakistan by shujat ali baig, 2010)

2.2 ROLE OF BANKING IN PAKISTAN

The banks plays role for economic development. Due to banking system economy is develop because it provides facilities for different people and investors. They provide loan, credit cards, insurance and many more facilities for that reason country economy developed. The banking field is so broader and stable in which so many people get their jobs, which cause in reduce in unemployment in some extent. On the other hand banks provides investment services, investment funds, private banking, custody services, safety services and perform much more other duties which is helpful for the economic development of any country. In Pakistan, agriculture development bank provides loan to the former on low interest rate for promoting the agriculture sector in Pakistan. Pakistan most economy is dependent on the agriculture sector as well as small industries so banks help them in their financial issues. (Role of commercial banks Pakistan, 2010)

2.3 FUNCTIONS OF BANKS IN PAKISTAN 2.3.1 Receiving deposit

This is the main function of banks to collect savings of individuals and firms. They offer different types of deposits for the facility of the customers. i. Current Account or Demand Deposits: Any amount can withdraw from this account any time without any notice. No interest is allows on this type of account. ii. Saving Account: This type of deposit account which is usually held by the middle class group. The saving account carries lower rate of interest. iii. Fixed Deposit:

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Amount cannot be withdrawn before the fixed future date in this type of deposit. High interest allowed in fixed deposit, which is different according to period.

2.3.2. Advancing Loans:

This is the important function of the commercial bank. Credit is given to the people in different ways. (a.): Making Loans: There are three types of loans given to borrowers. i. Short Term Loans: These loans are advanced for the period of six months to one year. High Interest rate Is charged on this type of accounts. ii. Medium Term Loans: Loans from one to five years are called medium term loans. iii: Long Term Loans: Loans which are advanced for the period, more than ten years are long term loans. (b.): Bank Overdraft Banks allows their trustful customers to draw more than the deposit they have in the Bank. Bank charges interest on overdraft. (c.): Cash Credit: Bank also gives credit against immovable property and interest is charged by the bank. (d.): Discounting of Bills: This is income source of bank to discount bills of exchange. They charge nominal Interest and discount only reputed and clear bills of exchange. (Commercial banks Pakistan, 2010)

2.4 BANK IN WHICH I WAS WORKING

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

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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 G.T Road Branch Gujrat.

SUMMARY
The banks plays role for economic development. Due to banking system economy is develop because it provides facilities for different people and investors. Banks perform many functions such as receiving deposit, advancing loan which is important function of the commercial banks in which short term loan are given at high rate of interest. Banks allows their trustful customers to draw more than the deposit they have in the Bank. Bank charges interest on overdraft. Bank also gives credit against immovable property and interest is charge by the bank. This is income source of bank to discount bills of exchange.

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Chapter # 3

INTRODUCTION TO THE BANK OF PUNJAB

INTRODUCTION
The Bank of Punjab functions as a scheduled commercial bank, with a network of 272 branches in major business centers throughout the country. It provides a wide range of banking services, including deposit in local currency; client deposit in foreign currency; remittances; and advances to business, trade, industry and agriculture. First Punjab Modaraba (FPM), a wholly owned subsidiary of the bank, was establish in 1992 and is being manage by Punjab Modaraba Services (Pvt.) Ltd. (BOP, Branches.aspx, 2010)

3.1 HISTORY OF THE ORGANIZATION

The Bank of Punjab established under an act of Punjab Assembly, viz. The Bank of Punjab act, 1989. The bill to this effect passed by government of Punjab in accordance with the provisions of the constitutions on July 26, 1989.

The act provided the foundation on which structure of the bank created. The entire responsibilities of policy formulation and management had been place, 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 elected amongst shareholders, the criteria for which already been laid down in the act.

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(Bank of Punjab, 2010)

3.2 FUNCTION PROVIDED BY BANK OF PUNJAB

The Bank of Punjab provides all types of banking services such as deposits in local currency and foreign currency, remittances, and advances to business, trade, industry and agriculture. 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. The Bank of Punjab offers attractive rates of profit on all deposits, opening of foreign currency accounts and handling of foreign exchange business for example imports, exports and remittances, financing, trade and industry for working capital requirements and money market operations. The lending policy of the Bank of Punjab is not only cautious and constructive but also based on principles of prudent lending with maximum emphasis on security. (Bank of Punjab product and services, 2010)

3.3 NUMBERS OF DEPARTMENTS

Review of Various Departments of the Overall Organization Overall working of the Bank of Punjab can divided into following departments. In following lines, these departments of the Bank of Punjab discussed in terms of their functions and responsibilities: Cash Department Deposits Department Account Opening Department Remittance Department Bills Department Clearing Department Credit Department Foreign Exchange Department 3.3.1:- CASH DEPARTMENT

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Cash department deals all affairs of cash receipt and payments. Activities of cash departments include open cheques and other instruments payments, accepting cash deposits on valid pay-in slips, accepting utility bills, accepting fees/dues of different institutions/departments etc. Cash department is headed by head a Cashier who is further supported by the Cash Officers and Tellers. 3.3.2:- DEPOSITS DEPARTMENT Deposits department deals in generated deposits for the branch in shape of term deposits on which some percentage of profit is given to depositors depending on amount of deposit and time period of term. Deposits department is also responsible for generation of call deposits receipts (CDRs) for account holders and non-account holders. This department is also responsible for posting of correct profit into customers accounts according to the profit rates negotiated on the time of accepting the deposits. Due to high importance of this department, an experienced bank officer is designated to so that all formalities can be fulfilled. The bank of deals in following deposit products: 3.3.2.1 Saving Deposits These types of deposits are designed to encourage the saving habit of the customer and lead to long term or invest relationship. Rates of interest are typically ahead, by a small margin. Savings deposits with the banking sector represent a very small proportion of total deposits. Customer can make withdrawals from these types of deposits. The cash reserve ratio is typically low then the current deposits because the withdrawals against these deposits are very low. 3.3.2.2 Current or Demand Deposits Current or demand deposits are such deposits, which can be drawn by the depositor at any time by presenting a cheque to the bank. People deposit their money in such types of deposits so that they can give a ready command on their deposits. In developed countries of world, a very significant part of money is kept under current or demand deposits. The cash reserve ratio for these accounts is very high. The operating cost for the handling of these types

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of deposits is very regular. 3.3.2.3 Fixed or Term Deposits Fixed deposits are such deposits which are for a fixed period of time and repayable after the expiry of stipulated time to the customer. Those people who have surplus funds and want to have save investment deposit the amount in the fixed deposits. The rate of interest given to depositor varies with the length of deposit, i.e. it is higher for longer period and lowers for shorter period. The rates of these types of deposits are higher than the saving deposits. The cash reserve against this deposit is very low because there is no fear of withdrawal of deposit before the stipulated time. 3.3.3:- ACCOUNT OPENING DEPARTMENT Account opening department deals in establishing relationship of banker and customer. After account opening a person is called account holder of that bank. Hence, it can be said that account opening is start of doing banking with any bank. Functions of account opening department include completion of all formalities imposed by the Bank and SBP for different account types of accounts. If someone wants to open an account then one should have to fill in an account opening form. Account opening form is accompanied by a specimen signature card and a chequebook requisition. On the account opening form, in addition to name, the customer has to provide mailing address, telephone number, identity card/passport number, nationality, business profession, etc. The customer has to tell the type of account along with the type of currency. Applicability of Zakat is also marked in account opening form. Credentials of the customer are also got verified from NADRA by putting CNIC number of the customer in online verification system. A specimen signature card is accompanied with the account opening form, which is later used to verify the signatures of the customer. After taking the filled account opening form from the customer along with other required documents, the receiving officer makes an entry in the computer to create a new account for the customer. All information given in the form is recorded into the system using computer. The account opening is also authenticated by a verifying officer. Same day a system generated letter of thanks is sent to the customer on given postal address of customer though register mail or courier service and

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on delivery confirmation of letter of thanks, account is activated and then cheque book is issued to the customer. 3.3.4:- REMITTANCE DEPARTMENT Remittance department deals all affairs of generation of different types of banking instruments such as payment order (PO), demand draft (DD), mail transfer (MT) etc. Description of these instruments along with terms and conditions of issuing these instruments are given in following lines. 3.3.4.1 Payment Order (PO) Pay order issued from one branch and it is only payable from the same branch. It is normally issued for payment in the same city. It is normally referred as banker's cheque. A payment order can be purchased by both account holders and non-account holders against some charges of the bank. Branches also issue payment orders for their own payments. 3.3.4.2Demand Draft (DD) Demand draft is a written order given by the one branch of a bank on behalf of its customer to another branch of the same bank for payment of certain amount to applicant specified person/entity. A demand draft can be purchased by both account holders and non-account holders against some charges of the bank. 3.3.4.3Mail Transfer (MT) It is the transfer of money from one branch to another branch of the same bank through mail service. In mail transfer there is no need of advice as the amount is directly credited to the receivers account. Facility of mail transfer can be obtained by both account holders and non-account holders against some charges but recipient of amount should an account holder of the branch in favor remittance is made. 3.3.5:- BILLS DEPARTMENT The Bills department deals with the collection, purchase and discounting of bills on behalf of the customers. The collection of cheques and other

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instruments has become a very important service that commercial banks render to their clients. While collecting cheques and other instruments, a bank acts as an agent of its customers and therefore, the banker customer relationship in this case changes from the debtor creditor relationship to the agent principal relationship. The collection of bills usually involves two banks; the collecting bank and the paying bank. Both, collecting as well as paying, banks have certain obligations to each other and to their customers. They have certain legal rights also and legal protection is available against fraudulent transactions under various sections of the Negotiable Instruments Act, 1881. 3.3.6:- CLEARING DEPARTMENT The bank of Punjab also provides the facility of collecting credit claims for customers i.e. when a customers deposits a cheque or any other instrument for collection which is of the same or some other bank then bank collects this instrument for its customer through clearing and similarly in case of payment the bank makes payment through clearing for the cheques or instruments which are given by its customer for his obligation fulfillment to customer of some other bank. The function of clearing house system is operated by the State Bank of Pakistan (SBP) if SBP has no office at a place then National Bank of Pakistan (NBP) as a representative of SBP acts as a clearing house. Procedure for Clearing the Cheques In following lines, procedure for clearing the cheques is given: The customer fills pay-in slip by writing deposit date, name, account number, cheque number, amount of cheque etc. and put signature as a depositor. Officer of the bank check apparent tenor of the cheque and if finds no discrepancy then specially cross the cheque and then affix clearing stamp on the cheque. After affixing cheque receiving stamp, one portion of pay-in slip is given to the customer and the remaining portion is attached with the cheque.

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At the end of day, all cheques are counted and then scrutinized in bank-wise and sent to the Clearing House. If the cheque rendered in clearing is accepted by the paying bank/branch, account of the respective account holder is credited. Clearing can be divided into following two types: Outward Clearing Inward Clearing

Outward Clearing The instrument collected or stored bank wise and a schedules is prepared separately for each bank mentioning the total number of instruments and the amount of the instruments. Then these are recorded in a register called OUTWARD CLEARING REGISTER then a main schedule is prepared showing the total number of cheque and their aggregate amount being presented in the clearing. The cheque/instruments are handed over the clearing branch. Central clearing branch issue CREDIT ADVICE to the branch for passing credit to its customer immediately. The branch on receiving credit advice debits the clearing account and credits the respective customer accounts. Inward Clearing On receiving cheque/instruments from central clearing branch, the clearing incharge checks the number and amount of cheques received in clearing and it must tally with the main schedule received from central clearing branch. These cheques/instruments are entered in INWARD CLEARING REGISTER for the cheque/instrument passed in clearing is a credit advice for the aggregate amount of cheque passed in clearing is prepared, drawn on central clearing branch. 3.3.7:-CREDIT DEPARTMENT The bank is profit seeking institution. It attracts surplus balance from the customer at low rate of interest and makes advances at a higher rate of interest to the individuals and business firms. Credit extensions are the most important activity of all the financial institutions, because it is the main source of earnings. Credit departments is one of the most sensitive and important

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department of the bank. The major portion of the profit is usually earned through this department. The job of this department is to make proposals about the loans. The finance management division at head office directly controls all the advances. In following lines different types of loans are given along with terms and conditions of their advancing:

3.3.7.1 Agriculture Loans 3.3.7.2 Consumer Loans BOP Quick Cash BOP Quick cash is a running finance facility provided to salaried persons through their bank accounts for miscellaneous personal uses. Through this facility a borrower can get Rs. 50,000/- to Rs. 500,000/- based on his/her income. Tenure of this facility is up to 1 year. (Bop quickcash.aspx, 2010) BOP Car Loan BOP car loan is a demand financing facility to purchase brand new locally manufactured/Assembled cars for personal use. This facility can be availed by salaried person of different nature and by the businesspersons. Through this facility a borrower can get Rs. 200,000/- to Rs. 5,000,000/-. Tenure of this facility is from 1 to 5 years. (Bop carloan.aspx, 2010) BOP Aasaish Loan BOP Aasaish loan is demand finance facility for purchase of consumer durable goods like TV, Refrigerators, Mobiles, Microwave Oven, Fans, Audio/Video system from selected companies on banks panel. In this facility, a borrower can get up to Rs. 500,000/-with no down payment. The financing tenure of this facility is up to maximum 3 years. (Bop aasaishloan.aspx, 2010)

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BOP House Loan BOP House loan is a demand financing facility provided to salaried persons/businessmen/professionals for purchase or renovation of house/flat. Through this facility a borrower can get minimum Rs. 100,000/- for purchase of house/flat and Rs. 25,000/- for renovation of house/flat. Tenure of this facility is from 3 to 20 years for purchase of house/flat and 3 to 7 years for renovation of house/flat. (Bop houseloan.aspx, 2010) 3.8:-FOREIGN EXCHANGE DEPARTMENT The foreign exchange means that the amount of any foreign currency that will available in a market at any given time against or in exchange for a particular countrys currency. This value of rate or exchange may show a stable, rising or downward trend of position day-to-day and even at different times during the same day. Foreign Exchange Department is the main source of income for the commercial banks as well as for the State bank. Commercial banks earn commission and service charges through letter of credit and letter of guarantee. While the state Bank collects withholding tax for the supply of goods through letter of credit and govt. earns from stamps duties applicable to issuance bills of exchange in case of letter of credit. It promotes the import and export business. It facilitates the local trade and foreign trade. Foreign Exchange Department deals with foreign currency accounts, letter of credit and letter of guarantee. (FCYDealingBranches.aspx, 2010)

3.4:-BRANCHES
Today, they established 272 Branches all over the country as:

CITES Province in Punjab

NO. OF BRANCHES 252

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Islamabad Quetta Karachi A.J. Kashmir Peshawar Total Branches: 2 3 5 3 7 272

3.5:-CURRENT STAFF
Name
Mr. Abdul Ghafoor Mirza Mr. A.Z.K Sherdil Mr. Farooq Ahmed Awan Mr. Naeemuddin Khan Mr. Shafqat Mahmood Mr. Tariq Mahmood Pasha Mr. Viqar Ahmed Khan Mr. Raza Saeed

Designation
Director Director Director President Director Director Director Secretary to the Board

(The Bank of Punjab Annual Report 2008)

3.5.1:- Current staff of the branch

On the first day of joining the branch, I introduced with the staff members of the branch, with whom I had to work. These staff members are; Mr. Amjad Farooq Manager Mr. Javed Iqbal operational manager Mr. Zahid Mehmood officer Mr. Nadeem Butt cashier Mr. Tayyab officer Mr. Ibrar Ali Mohsin officer OTHER STAFF

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Including Security guards, Peon and messenger

3.5.2 Number of employees

In following table category, wise figure of employees of the Bank of Punjab is given: Category Permanent Staff Temporary/on contractual Staff Total Staff Strength Number of Employees 3534 622 4156

(The Bank of Punjab Annual Report 2008) 3.6 CRITICAL ANALYSIS OF THE BRANCH
Although it was a great experience of working with the team of BOP, Gujrat branch (0230), but during my internship in BOP, I have found some problems, which hinder the success and effectiveness of the branch.

3.6.1 Risk Framework

Classification of banking risk Economic Environment Organizational Liquidity Operational Technological Strategic Credit Human Resource Management

3.6.2 Risk Faced By the Bank 28

The Bank of Punjab

3.6.2.1 Security System:
Another risk which a branch faced is its security risk which arises due to all operational activities of the business relating to cash on the spot.The security guards of the branch is not enough active as they are. The guards except of their duties they take part in the operations activities of the branch. Bank Docatty Having cash over their limits

O er at in g G r a d e I

3.6.2.2Employees honesty:
The bank or branch faced risk by employees honesty if the two or more employees have blood or close relations with each other. Some of their employees are working long time with each other or posted only in one branch for long time. All this is dangerous to the bank and they make frauds and misconduct in the bank. Few employees could not lock their system and not close their bank ids. Through this other person get benefit and make wrong transitions.

3.6.2.3Management Risk:
The senior employees working in the organization are not well aware of the computing systems. The management could not manage the issues arises in the bank. Those persons who newly employed or working from a few past years only knows proper use of this technology.

(a)

Systematic Risk:

it is the risk which is due to the factors which are beyond the control of the people working in the market and that's why risk free rate of return in used to just compensate this type of risk in market.

Unsystematic Risk:
This is the risk other than systematic risk and which is due to the factors which are controllable by the people working in market and market risk premium is used to compensate this type of risk.

3.6.3 Loaning System

The loaning system of the bank involves risk in following manners Loan defult Overvaluation, illegal property and amortization

29

The Bank of Punjab

Noninsurance coverage involves risk in it. If the loan officer and related staff are not capable of identifying the risk associated with the loan, this is highly sensitive for the bank security.

3.6.4 Communication system

Communication system of the branch is not well: related to other private banks in Pakistan. For banks, not only external communication of the branch is important but also communication of the staff is not very polite with the branch staff as well as the customers.

3.6.5 Moral of staff

Moral of the staff is poor due to low salary package and lack of cooperation between collogue and manager. They create hurdle each other in their working and provide misguide in case of trouble to any staff member for getting their own attention in higher authority. Bank of Punjab not offering good salaries to their employees as well as extra fringe benefit compare to the other employees of the private banks.

3.6.6 Physical facilities

The physical environment is not very good of the branch it has not enough sitting space for look after their customers. Branch has ATM machine which has some technical fault most customers are disagree with that. Computers which are use by the banks employees are low speed due to that customer has to wait for processing of transaction.

3.7 PERFORMANCES
Performance of the bank of Punjab decrease due to the old and less educated staff they dont know how to refresh the customer mind so that tell others about the branch performance. Branch staff not guide them what type of account you have to suit for business and help them in their business problems. (Bank-of-Punjab-analysis, 2010)

30

The Bank of Punjab

SUMMARY
The Bank of Punjab functions as a scheduled commercial bank, with a network of 272 branches in major business centers throughout the country. It provides a wide range of banking services, including deposit in local currency; client deposit in foreign currency; remittances; and advances to business, trade, industry and agriculture. The Bank of Punjab established under an act of Punjab Assembly, viz. The Bank of Punjab act, 1989. The Bank of Punjab provides all types of banking services such as deposits in local currency and foreign currency, remittances, and advances to business, trade, industry and agriculture. The bank of Punjab has different department Cash Department which deals to the cash receipt and payment, Deposits Department deals with the amount deposit in account holder, account Opening Department deals with the new account opening in respect of some reference ,Remittance Department deals with the transfer of money ,Bills Department deals with the collection of bill of exchange, utility bill Clearing Department include inward and outward clearing Credit Department provides loans Foreign Exchange Department deals with the transfer of money from one country to another.

31

The Bank of Punjab

Chapter # 4 4.1Policies of the bank of Punjab

The Know Your Customer (KYC) and Anti Money laundering (AML) policy of The Bank Of Punjab (BOP) has been formulated to ensure that Bank is performing its business in conformity with the regulatory requirements issued by the SBP & Controlling agencies at one hand and international KYC / AML policies & standards on other.

4.2Purpose of the policy

The purpose of the KYC / AML policy is to: 1. Adhere to Know Your Customer (KYC) policies & procedures. 2. Comply with all applicable money laundering laws and regulations and internal policies and procedures 3. Protect the Bank from being used as a channel for illegal transactions arising from money laundering activity. 4. Protect the reputation of the bank and clearly disassociate from the increasing danger of organized criminal activity and money laundering. 5. On detection of suspicious activity, take appropriate action at management level. (BOP policies,2010)

4.3 Strategies of the branch

Goal of the branch is to capture the big account holder in the factory area of gujrat as well as provide good facilities of loan and good relation with the

32

The Bank of Punjab

investors. Objective of the branch is to provide better atmosphere with highly and efficient technology for that reason manager Mr. amjad farooq visit the different industries and inspires and guide them to how they can increase their profit. (Discussion with branch manager and staff, 2010)

4.4 Success
Due to the high cooperation and good relation with the industrial sector, the bank of Punjab G.T road branch has highest account holder like metro industries, Inayat Fan, china ceramics, and concept furniture etc. that has more than 20 million in their account balance. With capturing the big account holder bank also has so many small account holder in which mostly are the pension holders as well as the saving account holders. (Discussion with branch manager and staff, 2010)

Summary
The policies of bank of Punjab are to get the knowledge of the customers and stop the money, which illegally transferred. The bank is performing its business in conformity with the regulatory requirements issued by the SBP & controlling agencies at one hand and international KYC / AML policies & standards on other. Banks of Punjab adopt different kind of policies to capture the new account holder as well as take care of the existing customers so that the efficiency of the bank is improved. By using these strategies the bank achieve different kind of success in their operational area.

33

The Bank of Punjab

Chapter #5

ANALYSIS
5.1 SWOT ANALYSIS
5.1.1 STRENGTHS

The Bank officers of BOP are considered as one of the most able
professionals in the banking world (some belong to BCCI). However, they have added some local flavor in accordance with their targeted segmented. In my observation that they interact with their clients as if they are their friends and discuss about their problems as their own. (Kalim Ullah Butt, 2010) Because of the compassionate and personalized services of the officers, the clients perception for BOP is very high. They have trust and feel themselves to be secure while dealing with BOP. (Sheikh Fazal, 2010)

BOP has opened all its branches at commercial areas so that the
customers or clients face no problems in reaching to the bank. For example, G.T Road Branch is being situated in business and commercial hub of Gujrat as big volume in trade. (Tariq Rafique, 2010)

BOP has a reliable and easy to use internal computer system. Every
information regarding the transactions in customers deposits has been computerized. Data are properly maintained. (Amjad Farooq, 2010) Good security system (Sheikh Fazal,2010)

Not excellent but good facilities are given to employees. (Amjad

Farooq, 2010)

34

The Bank of Punjab

5.1.2 WEAKNESSES

Lack of proper internal controls is one of the major weaknesses of

BOP. The auditor in his review also points it. (Tariq Rafique, 2010)

BOP has formulized a lot of products and services for its customers,
even more than other commercial banks, but any advertisement on electronic media has not been seen. (Kalim Ullah, 2010) I observed during my internship that some of the employees were burdened with over work. Therefore, I think that the work should be distributed according to their post and capabilities.

Biased selection of employees. (Amjad Farooq, 2010) 5.1.3 OPPORTUNITIES: Satisfy dynamic consumer needs, BOP has made significant inroads in
its entire service spectrum. Many products have been introduced especially in Retail Banking (Agriculture side) and people are increasingly becoming loyal to the bank and because of feasible transactions. Optimum pricing and branding strategies of the bank are helping to make customer feel secure and convenient.(Tariq Rafique,2010)

All the opportunities of the 21st century are to be availed in the

information technology. Information technology is the future of this dynamic world. Therefore, BOP should emphasize much on IT, especially on E-Banking. Bank can design a universal account like other foreign banks, to enhance online facilities. (Kalim Ullah, 2010) BOP has introduced a number of financial schemes including special Deposit Accounts. These accounts have their unique features. During the last three years, BOP deposits have been increasing @ 40%, which is a very healthy sign. Therefore, with the commencement of new schemes there can even be a greater increase in its deposits (Sheikh Fazal,2010) 5.1.4 THREATS

35

The Bank of Punjab

Government is taking very bold steps to promote IT in Pakistan BOP has an opportunity to improve in IT stock exchange is very volatile and takes immediate effect so in times of crises conservative investors turns to saving deposits.

BOP is surrounded by many competitors it has an opportunity to

aggressive marketing to increase its business.

(Bank-of-Punjab-Report) 5.2 RATIO ANALYSIS 5.2.1) Return on Equity

ROE = Net Profit after Tax 100 Shareholder' s Equity

Calculations Criteria % 2004

1368 4420

2005
2353 6777

2006
3804 10659

2007
4446 15110

2008
(10060) 5057

= 30.95 Comments

= 34.72

= 35.69

= 29.42

= (1.99)

There is upward trend in ROE during in 2004 to 2006 due to upward trend in net profit after tax of the bank during this period. In 2007, the bank shows upward trend in net profit after tax but ROE remains lower than previous years due to disproportionate changes in net profit after tax as compared to shareholders equity. In 2008 ROE again shows downward trend by showing negative value -1.99%. Reason of this negative ROE is the loss to the bank in 2008. Trend of this ratio shows growth in earning the shareholders on their investment during 2004 to 2006, lesser earning in 2007 and loss in 2008.

5.2.2) Return on Investment

ROI = Net Profit after Tax 100 Total Assets

36

The Bank of Punjab

Calculations Criteria % 2004
1368 66320

2005
2353 111154

2006
3804 164855

2007
4446 234974

2008
(10060) 185909

= 2.06 Comments

= 2.12

= 2.31

= 1.89

= (5.41)

There is upward trend in ROI during in 2004 to 2006 due to upward trend in net profit after tax of the bank during this period. In 2007 the bank shows upward trend in net profit after tax but ROI remains lower than previous years due to disproportionate changes in net profit after tax as compared to shareholders equity. In 2008, ROI again shows downward trend by showing negative value -5.41%. Reason of this negative ROI is the loss to the bank in 2008. Reason of this negative ROI is the loss to the bank in 2008. Trend of this ratio shows growth in earning power of the bank for the invested capital during 2004 to 2008.

5.2.3) Total Assets Turnover Ratio

Total Assets Turnover Ratio = Total Income Total Assets

Calculations Criteria times 2004

3652 66320

2005
7456 111154

2006
14533 164855

2007
22962 234974

2008
21753 185909

= 0.06 Comments

= 0.07

= 0.09

= 0.10

= 0.12

There is upward trend in total assets turnover ratio during 2004 to 2008. During 2004 to 2007, upward trend is due to more rapid growth in total income of the bank as compared to growth in total assets. In 2008, downward trend in total assets as compared to total income keeps this ratio upward.

37

The Bank of Punjab

Trend of this ratio shows relative efficiency of the banks assets in generating income during 2004 to 2008.

5.2.4) Profit before Tax to Total Income Ratio

Profit before Tax to Total Income Ratio = Profit before Tax 100 Total Income

Calculations Criteria % 2004

1736 2933

2005
3165 4787

2006
4769 7024

2007
4846 9023

2008
(16833) 5322

= 59.19 Comments

= 66.11

= 67.89

= 53.71

= (316.29)

There is upward trend in profit before tax to total income ratio during 2004 to 2006. During 2004 to 2006, upward trend is due to growth in profit before tax of the bank during this period. In 2007, more upward trend in total income as compared to profit after tax tends this ratio downward in this year. In 2008 loss to the bank results this ratio in negative vale. Trend of this ratio shows effectiveness of the banks management for controlling the expenses and converting the income into net profit before tax during 2004 to 2008.

5.2.5) Profit after Tax to Total Income Ratio

Profit after Tax to Total Income Ratio = Profit after Tax 100 Total Income

Calculations Criteria % 2004

1368 2933

2005
2353 4787

2006
3804 7024

2007
4446 9023

2008
(10060) 5322

= 46.65

= 49.16

= 54.16

= 49.27

= (189.03) 38

The Bank of Punjab

Comments
There is upward trend in profit after tax to total income ratio during 2004 to 2006. During 2004 to 2006, upward trend is due to growth in profit after tax of the bank during this period. In 2007 upward trend in total income as compared to profit before tax tends this ratio downward in this year. In 2008, loss to the bank results this ratio in negative value. Trend of this ratio shows effectiveness of the banks management for controlling the expenses and converting the generated income into net profit after tax during 2004 to 2008.

5.2.6) Debt-to-Assets Ratio

Debt - to - Assets Ratio =

Calculations Criteria times 2004

2832 66320

Total Debt Total Assets

2005
6791 111154

2006
6989 164855

2007
17843 234974

2008
12279 185909

= 0.04

= 0.06

= 0.04

= 0.08

= 0.07

Comments
There is upward trend in debt to assets ratio during 2004 to 2005 and during 2006 to 2007. This upward trend is due to more growth in total debt of the bank during this period as compared to total assets. There is downward trend in debt to assets ratio during 2005 to 2006 and 2007 to 2008. This downward trend is due more rapid growth in total assets of the bank as compared to total debt burned during these periods. In 2008, some progress is observed in reduction of debt burden of the bank but there is slight loss of total assets of the bank that keeps this ratio at 0.07 times in this year. Trend of this ratio shows the relative extent to which the bank is using the borrowed money during 2004 to 2008.

5.2.7) Debt-to- Equity Ratio 39

The Bank of Punjab

Debt - to - Equity Ratio = Total Debt Shareholders Equity

Calculations Criteria times 2004

2832 4420

2005
6791 6777

2006
6989 10659

2007
17843 15110

2008
12279 5057

= 0.64 Comments

= 1.00

= 0.66

= 1.18

= 2.43

There is upward trend in debt to equity ratio during in 2004 to 2005. In 2005, more rapid growth in long-term debt as compared to shareholders equity resulted in upward trend of this ratio. In 2006 this trend reversed and shareholders equity showed more growth than long-term debt and hence this ratio goes down in this year. During 2006 to 2008, again, banks long-term debt showed much growth than the equity and hence the trend of this ratio goes upward in this period. Trend of this ratio indicates the extent to which debt financing is used by the bank relative to equity financing during 2004 to 2008.

5.2.8) Earnings Per Share

Earning per Share = Net Profit after Taxes Total No. of Shares

Calculations

Criteria Rs.

2004
1368174 150680

2005
2353242 235089

2006
3804255 289517

2007
4454018 423789

2008
10084940 525257

= 9.08

= 10.01

= 13.14

= 10.51

= (19.02)

Comments 40

The Bank of Punjab

There is upward trend in earning per share ratio during 2004 to 2006. During 2004 to 2006, upward trend is due to more relative growth in net profit after tax of the bank during this period. In 2007 less development trend in net profit after taxes as compared to no. of shares tends this ratio downward in this year. In 2008, loss to the bank results this ratio in negative vale. Trend of this ratio shows the earning to the shareholders against single share during 2004 to 2008.

5.2.9) Return on Deposits Ratio

Return on Deposits Ratio = Net Profit before tax 100 Total Deposits

Calculations Criteria % 2004

1736 54724

2005
3165 88465

2006
4769 137728

2007
4846 191969

2008
(16833) 164073

= 3.17 Comments

= 3.58

= 3.46

= 2.52

= (10.26)

There is upward trend in return on deposits ratio in 2004 to 2005. In 2004 to 2005, upward trend is due to more relative growth in net profit before tax of the bank as during this period as compared to total assets. During 2005 to 2007 less development trend in net profit before tax as compared to total assets tends this ratio downward in this period. In 2008, loss to the bank results this ratio in negative vale. Trend of this ratio indicates to what extent deposits which represent funds mobilization on the part of the bank contribute towards income generation during 2004 to 2008.

5.2.10) Interest Expenses to Deposits

Interest Expenses to Deposits Ratio = Total Interest Expenses 100 Total Deposits

Calculations 41

The Bank of Punjab

Criteria %

2004
719 54724

2005
2669 88465

2006
7509 137728

2007
13939 191969

2008
16614 164073

= 1.31 Comments

= 3.02

= 5.45

= 7.26

= 10.13

There is upward trend in total interest expenses to total deposits ratio during 2004 to 2008. During 2004 to 2008 upward trend is due to more rapid growth in total interest expenses of the bank as compared to total deposits during this period. Trend of this ratio shows interest expense paid on part of different types of deposits during 2004 to 2008.

5.2.11) Interest Income to Advances Ratio

Interest Income to Advances (net) Ratio = Total Interest Income 100 Total Advances (net)

Calculations Criteria % 2004

2555 39439

2005
6125 63624

2006
11579 101320

2007
17539 133894

2008
17753 131731

= 6.48 Comments

= 9.63

= 11.43

= 13.10

= 13.48

There is upward trend in total interest income to total advance (net) ratio during 2004 to 2008. During 2004 to 2007 upward trend is due to more rapid growth in total interest income of the bank as compared to total advances (net) during this period. In 2008 total interest income of the bank increases but total advances (net) figure show downward trend that keeps this ratio upward in this year. Trend of this ratio shows the relative extent to which interest was earn on advances during 2004 to 2008.

42

The Bank of Punjab

(The bank of Punjab annual reports 2004 to 2008.) 5.3 WHAT I PERFORMED IN THE BANK DURING INTERNSHIP PERIOD: 5.3.1 ACCOUNT OPENING: I learned how to fill the form for opening an account. Then I learned how to enter this information in computer software and then we receive the account numbers learned that we authenticate the account then we did not change the account name and address our self for this we have to communicate to head office. PENSION: I learned that how to give pension to old people. We check the pension number then we enter it in the bank software and then enter in the register. VOUCHERS REGISTER: I learned how to maintain the voucher register. I learned how to enter the head office vouchers and general voucher in voucher register. I enter the whole month voucher in register and then calculate the average voucher and utility bills. CHEQUE BOOK REGISTER: I learned how to maintain chequebook register and how to fill the chequebook requisition slip for chequebook. I enter the chequebook in register and then give the chequebook to client. ATM FORM: I learned how to fill ATM card form. I fill the client ATM form, then enter it in computer software, and then record the transaction number. FOREIGN REMITTANCE:

43

The Bank of Punjab

I learned how to give the foreign remittance through express money for express money we used its website and then enter the pin code that specified by the bank. UTILITY BILLS: I learned how to enter the utility bill in computer software. I enter the GAS, Electricity, PTCL, water bills in computer to make the scroll. ONLINE TRANSFER OF MONEY: I learned how to transfer the money. For this, have to fill the form and then we online from the branch to which we have to transfer the money. Then we enter the name, account number and other information and then record the transaction number. INWARD MAIL REGISTER: I learned how to maintain the inward mail register. I enter the mail of different branches in different places. CLEARING: I learned how to send cheques for clearing. I enter the document number, amount, branch code, and many more to send the cheque. THE BANK OF PUNJAB uses the services of NIFT for this purpose. OUTWARD BILL FOR COLLECTION: I learned how to made OBC. For this purpose, the required information entered in OBC module then fixes stamps on the cheques and sends it for collection. OTHERS: I learned how to debit or credited the account of client in software but never practiced it. Then I learned how to check the balance, prepare account statement, and fill the deposit slips and cheque. I learned about different accounts and there requirements and many more.

44

The Bank of Punjab

5.4 What I have learned at Internship Personal Learning Personal learning is a moral and ethical obligation set by a person to move in a mellow way to do extremely well in present and future. During the internship, I realized following duties. Team work Broad vision Always Create Opportunities Open Communication With The Boss Appearance

Teamwork: A team player can achieve more than an individual. Good coordination and cooperation with peers and other staff members can impulse a person to perform better in difficult situations. During my internship, I noticed that the degree of cohesiveness among the banks employees is high, that is why Punjab bank is achieving its target quite efficiently. Ever Ready For Challenges: If a person can handle problems and challenge adequately, he can grow especially in marketing field where everything is presently dynamic. Broad Visualization: Positive thinking helps us to remove any inconsistency and obstacles in your work. Positive thinking and broad visualization helps you to achieve something different and new. Always Create Opportunities: Dont wait for opportunities always create opportunities

45

The Bank of Punjab

No one is so powerful If you are able to create opportunities, success is yours. But how? The answer is very simple, by generating new and useful ideas for the organization. Open Communication with Your Boss: To avoid any kind of misunderstanding with your boss, communicate freely with him. During my internship, I analyzed that; People dont leave the organizations they leave their bosses So be friendly with your staff and boss and communicate freely to avoid organizational switching. Appearance: Attractive appearance can be very useful to impress others. A professional should be dressed up properly to influence others. CONCLUSION: From my internship in THE BANK OF PUNJAB, I know clearly about the atmosphere in the bank. It helps me a lot in job after doing my master. While doing my internship I came to know that the banks have my positive points but it also has some negative aspects. Besides this thing, I learned lot of things, which help me in my practical life.

46

The Bank of Punjab

Chapter 6
6: FINDINGS AND RECOMMENDATION
6.1 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) The pay scale of The Bank of Punjab employees is less than other banks, which is an indication of discouragement among employees. E) 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 creates difficulty for the customers as well as staff members for proper dealings, which always gives a congested atmosphere.

6.2 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 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 some suggestions, which will enable the Bank to compete with other banks, more effectively and more efficiently.

1. The employees should assigned jobs for specific period and then they
should shift to other department so that can gain knowledge of other jobs.

47

The Bank of Punjab

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. The Bank management should give more incentives and pay scale of
officers should revise and improved.

4. In order to enter fast moving world, the bank must be fully equipped with
advanced technology.

5. The size of all branches must enhance and working conditions should
improve. It will increase the productivity and efficiency of the employees and the bank will get more benefits after some expenditure.

6. Some people in the bank over burdened with work. For this, the work
should divide equally and in some cases, more employees should employ.

7. In main cities the bank should start cash counter as well as ATM facilities
to compete with other banks. (The bank of Punjab reports.)

References
(Banking, 2010) http://www.nos.org/Secbuscour/15.pdf dated: - 15 July, 2010. (History-of-banking-and-finance, 2010) http://finance.mapsofworld.com/finance/finance-and-banking/historyof-banking-and-finance.html dated: - 15 July, 2010. (Financial-and-insurance-sector Indian articles, 2010)

http://www.articlesbase.com/insurance-articles/financial-andinsurance-sector-in-india-468408.html dated: -16 July 2010. (Banking services, 2010) http://anubanking2.blogspot.com/2008_07_01_archive.html dated 3 august, 2010. (Role of banking, 2010) http://www.nos.org/Secbuscour/15.pdf dated 3 august, 2010. (Banking, 2010)

48

The Bank of Punjab

http://www.answers.com/topic/banking 5 august, 2010. (Banking system in Pakistan by shujat ali baig, 2010) http://www.pakistaneconomist.com/issue1999/issue49/f&m.htm dated 7- august, 2010. (Financial services Pakistan, 2010) http://en.wikipedia.org/wiki/Financial_servicess dated: - 7 august, 2010 (Role of commercial banks Pakistan, 2010) http://en.wikipedia.org/wiki/Commercial_bank dated: - 12 august, 2010 (BOP, Branches.aspx, 2010)

https://www.bop.com.pk/Branches.aspx dated: - 16 august, 2010 (Bank of Punjab, 2010) www.theoriginof.com/centurion-bank-of-punjab.html

august, 2010 (Bank of Punjab product and services, 2010) dated: -16

http://www.malloflahore.pk/index.php?
option=com_content&view=article&id=46%3Abank-ofpunjab&catid=15%3Ashop&Itemid=10 dated: -18 august, 2010 (Bop quickcash.aspx, 2010)

www.bop.com.pk/consumerfinance/quickcash.aspx dated: - 18 august,

2010 (Bop carloan.aspx, 2010)

www.bop.com.pk/consumerfinance/carloan.aspx dated: - 18 august,

2010 (Bop aasaishloan.aspx, 2010)

www.bop.com.pk/consumerfinance/aasaishloan.aspx dated: -18 august,

2010 (Bop houseloan.aspx, 2010)

49

The Bank of Punjab

www.bop.com.pk/consumerfinance/houseloan.aspx dated: -18 august,
2010 (Foreign currency, 2010)

www.bop.com.pk/TradeFinance/FCYDealingBranches.aspx 18 dated:
- august, 2010 (The Bank of Punjab Annual Report 2008)

www.bop.com.pk/Financial/BOPAnnualReport2008new.pdf dated: 24 August 2010. (Bank-of-Punjab-analysis, 2010)

http://www.scribd.com/doc/8009632/Bank-of-Punjab-analysis dated: 24 August 2010. (Bop policies, 2010)

https://www.bop.com.pk/Download/KYC%20AML%20POLICY
dated: - 20 August 2010.

(Bank-of-Punjab-Report) http://www.bop.com.pk/Bank-of-Punjab-Report dated: - 2 September

2010.

(Kalim Ullah, 2010), (member of audit committee. 22 August, 2010 ) (Tariq Rafique,2010), (in charge of audit committee. 25 August, 2010) (Amjad Farooq, 2010),(manager of bop,0230. 24 August,2010)
(Sheikh Fazal,2010), (member of audit committee. 27 August, 2010 ) Others. Fundamentals of Financial Management (12th Ed.) by James C. Van Horne & John M. Wachowicz, JR. State Bank of Pakistan Official Website. The Bank of Punjab Annual Report FY 2008. The Bank of Punjab Annual Accounts FY 2004, 2005, 2006 & 2007. The Bank of Punjab Credit Policy Manual. The Bank of Punjab Operations Manual.

The Bank of Punjab Official Website. 50