INTERNSHIP REPORT ON

BANK OF KHYBER (KOHAT)

SUBMITTED BY:
JAWAD KHAN
ROLL NO: 881
SUPERVISED BY:
ABDUL WAHEED

GOVERNMENT POSTGRADUATE COLLEGE

OF MANAGEMENT SCIENCES
ABBOTTABAD
2014-2015

INTERNSHIP REPORT ON

BANK OF KHYBER (KOHAT)

JAWAD KHAN
ROLL NO: 881
SUPERVISED BY:
ABDUL WAHEED

This internship report is submitted in partial fulfillment of the requirement for the degree
of Master of Commerce awarded by Hazara University, Mansehra.

GOVERNMENT POSTGRADUATE COLLEGE

OF MANAGEMENT SCIENCES
ABBOTTABAD
2014-2015

GOVERNMENT POSTGRADUATE COLLEGE

OF MANAGEMENT SCIENCES
ABBOTTABAD

Approval sheet
Approval committee

1. External examiner
Mr. ___________________________

2. Supervisor
Prof: ABDUL WAHEED
Designation: lecturer GCMS Abbottabad
MS (banking And Finance)

3. Head of department
Mushtaq Ahmed
Designation: Principal

Signature__________________

Signature_________________

Signature_________________

DEDICATION
In the name of ALLAH the most Beneficial and most Merciful.
I dedicate this humble effort to my parents who always prayed for my
success and supported me spiritually and financially in every stage of life.
This Report is dedicated to my parents for giving me this opportunity to
attend this degree, who advised me at the outset, all those years ago to
always crave for learning and supporting me throughout my student life who
acted as a backbone and a major reason behind my accomplishment, my
grandparents who have always supported me with their prays and also to my
honorable teachers who have been my source of inspiration, my friends who
always supported me, guided me and encouraged me in my endeavors.

PREFACE
This report is an opportunity to exercise my theoretical knowledge in a real life working
environment at Bank of Khyber Kohat.
Being a student of M.COM (Master in Commerce) it is necessary for me to spend most of
my time to compile my internship report. This put me to learn practically hoe to conduct
valuable information. There is a lot of difference between theory and practical but both
provide the best opportunity to visualize the difference.
This report also consists of all the information regarding financial management of Bank
of Khyber Kohat. Which includes financial analysis; findings and recommendations were
also discussed.

ACKNOWLEDGEMENT
In the name of ALLAH, the most kind and most merciful.

First of all Im grateful to ALLAH ALMIGHTY, who bestowed me with

health, abilities and guidance to complete the project in a successful
manner, and without HIS help I was unable to perform this task.
More than anybody else, I would like to acknowledge my project
advisor, Mr. Muhammad Maqsood for his never ending support and
untiring efforts. He was always there to guide me whenever I felt stuck
off and his encouragement always worked as morale booster for me. I
have found him very helpful while discussing the tricky issues in this
dissertation work.
I would also like to thank Mr. Tanveer khan (Operations Manager of
Bank of Khyber kohat) for providing me the opportunity to have an
excellent learning experience during my internship. His critical
comments on my work have certainly made me think of new ideas and
techniques.

JAWAD KHAN

TABLE OF CONTENT
CHAPTER # 1....1
INTRODUCTION TO THE REPORT....1
INTRODUCTION.....1
1.1Objective of the Study....1
1.2 Background of Study.....2
1.3 Purpose of the study.......2
1.4 Scope of the study.......2
1.5 Limitation of the study2
1.6 Research Methodologies of the Study3
Primary data..3
Secondary data..3
1.7 scheme of the report....3
CHAPTER # 2..4
Introduction to Bank of Khyber.....4
Introduction....4
2.1 Origin of Banking....4
2.2 Nature of Banking ...5
2.3 Banking........6
2.4 Banking in Pakistan.7
2.5 Historical Background of the Bank of Khyber....8
2.6 Scheduled Bank Status....8
2.7 The Paid up Capital of the Bank.9
2.8 Branches in Pakistan...9
CHAPTER # 3.10
SOURCES AND USES OF FUNDS..10
Introduction.10
3.1 Sources of Fund.10
1) Fixed deposits....10

2) Saving deposits......10
3) Current deposits..10
4) Reserve for contingency..............................................................................11
5) Other borrowing......11
3.2 Uses of Fund..11
3.3 Sources of Income of Bank of Khyber..11
3.4 Expenses of BOK....11
1) Interest on Deposits.....11
2) Expenses of Management...11
3) Marketing Expense.11
4) Bad debts or Loan written off.11
Chapter # 4....12
CASH, CREDIT, CLEARING DEPARTMENTS...12
INTRODUCTION.....12
4.1 Deposit Department..12
4.1.1 opening of account.12
4.1.2 Documents Required In Account Opening.12
4.1.3 Types of Account....13
a) Individual Account.....13
b) joint account...13
4.1.4 Nature of Accounts in BOK....13
a) Current Account.....13
b) PLS Saving Account...13
c) Term Deposits.....13
4.2 Clearing of Bills.....14
4.3 Fundamentals of Credits..14
4.4 Objectives.14
4.5 Credits Structuring & Approval...14
4.6 Importance of Loan Document....15
4.7 Credit Disbursement...16

4.8 Credit Approval.16

4.9 Credit Approval Responsibilities ..16
4.10 Credit Management in Bank Aims & Objectives...17
CHAPTER # 5...18
FINANCIAL ANALYSIS AND SWOT ANALYSIS.18
INTRODUCTION..18
5.1

Common Size Analysis..19

5.2 Common Size Analysis.21

5.3 Financial Ratio Analysis...22
5.3.1 Liquidity Ratio..22
5.3.2 Profitability Ratio..23
5.3.3 Return on Assets after Taxes.23
5.3.4 Assets Turnover Ratio...23
5.3.6 Total Expenditure to Total Income Ratio..24
5.3.7 Operating Cost to Total Income Ratio...24
5.3.8 Return on Equity.25
5.3.9 Operating Cost to Deposits Ratio ..26
5.3.10 Interest expense to Deposits 26
5.3.11 Advance to Deposits Ratio27
5.3.12 Interest Earned to Advances Ratio27
5.3.13 Assets Growth Ratio.28
5.3.14 Deposits Growth Ratio..29
5.3.15 Advances Growth Ratio..30
5.4 SWOT Analysis.31
5.4.1 SWOT Analysis (Strength Weaknesses Opportunities & Threat)...31
5.4.2 Strength31
5.4.3 Weaknesses...32
5.4.4 Opportunity...33
5.4.5 Threats...34

CHAPTER # 6..36
FINDINGS36
INTRODUCTION.36
CHAPTER # 7......38
RECOMMENDATIONS....38
INTRODUCTION.....38
REFERNCES.......................................................40

EXECUTIVE SUMMARY
Bank Of Khyber maintains its position as Pakistan's premier bank determined to
set higher standards of achievements. It is the major business partner for the
Government of Pakistan with special emphasis on fostering Pakistan's economic
growth through aggressive and balanced lending policies, technologically oriented
products and services offered through its large network of branches locally,
internationally and representative offices.
The purpose of this report is to analyze the performance activities of The Bank of
Khyber university road branch and BOK overall performance and its financial
position and organizational structure as well. According to my knowledge BOK
chain of command is chairman of BOK is the upper most position and there are
many directors under that chairman then chief executive then five senior executive
vice president and this hierarchy is going to end at non clerical staff.
In this report we analyze different departments of Bank Of Khyber including Cash
department, Accounts opening department, Clearance department, Advances /
Credit department, Remittance department, Foreign Exchange department and
after analyzing these department we have certain findings and recommendation.