INTERNSHIP REPORT

ON

(The Bank of Punjab)

Specialization in Finance

Submitted To The Chairman Department of Business Administration

Submitted By Name: Munir Ahmed ID : mc090206095 Session: 2009 2011

DEPARTMENT OF BUSINESS ADMINISTRATION

Alif Laam Raa. A book which we have revealed to you (Muhammad) So that you may lead the people from out of the dark nesses into the light by their Lord's leave to the path of the All-Mighty, the Praiseworthy.
(Qur'an 14:1)

1 . Dedication 2 . Letter of Undertaking 3 . Internship Letter 4 . Acknowledgment 5 . Preface 6 . History of banking 6.1 Nationalization Of Bank 6.2 Public Sector Commercial Bank Local Private Bank 6.4 Foreign Bank 6.5 Specialized Bank 7. The bank of Punjab 7.1 Vision Statement 7.2 Mission Statement 7.3 Core Values 8. HISTORY OF BOP 9. Awards And Achievement 9.1 Excellence Award Of By the CBR 9.2 3 r d Kissan Time Award 9.3 Best Corporate Report Award 9.4 16 t h Bolan Excellence Award 9.4 Achievement Award 10. Major customer of BOP 11. Punjab Government show faith on BOP 15

8 9 10 11 12 13 14 15 15 16 17 17 17 17 18 19 19 19 19 19 19 20 20 6.3

12. Branch Network of BOP (Fig) 13. Hierarchical Flow 14. Board Of Director 15. The Bank Of Punjab Darya Khan 15.1 Departments 15.2 Business Volume 15.3 Duration Of I nternship 15.4 Department Visited By I nternee 16. General banking of the Punjab 17. Deposit Department 17.1 Nature Of Deposits 17.2 Current Deposit 17.3 Saving Deposit 17.4 Short Notice Term Deposits 17.5 Call Deposit 17.6 Term Deposit Receipt 18. Opening an Account 18.1 Account Opening Procedure 19. Clearing Department 19.1 Clearing 19.2 Outward Clearing 19.3 Inward Clearing 19.4 Reserves At State Ba nk 20. Remittance Department 20.1 Types of Remittance 21. Demand Draft 21.1 Procedure 21.2 Parties Involved 22. Mail Transfer 22.1 Procedures 23. Telegraph Transfer

21 22 23 24 24 26 26 26 27 27 28 28 28 29 29 29 29 30 31 31 32 32 32 33 33 33 33 34 34 35 35

23.1 Procedu re 24. Pay Order 24.1 Procedure 25. Account Department 25.1 Manual Function of Account Department 25.2 Types Of Vouchers 25.3 Cash Book 25.3 Maintaining and Updating Legers 25.4 Computerized Function of Account Department 26. Bills Department 26.1 Outward Bills for Collection 26.2 Inward Bills for Collection 26.3 Outward Documentary Bills for Collection 27. Advance and Credit Department 27.1 Principles Of While Advancing 27.2 Forms of Lending 27.3 Running Finance 27.4 Demand Finance 27.5 Advances against I mmovable Property 27.6 Agriculture Scheme 27.7 Business Promotion Scheme 28. Services 28.1 Commercial Banking 28.2 Cooperate and Investment Banking 28.3 Cash Management Services 28.4 Utility Bills 28.5 Lockers

35 36 36 37 37 37 38 38 38 38 40 40 40 41 41 41 2 42 43 43 44 45 45 45 45 47 47 48

26.4 Inward Documen tary Bills for Collection 41

28.6 ATM 28.7 Online Banking 28.8 Locker 28.9 Demand Draft 28.10 Letter Of Credit 28.11 Pay Order 28.12 Mail Transfer 29. Financial Analysis 29.1 Importance of Financial Analysis 3 0 . Ratio Analysis for Last Three Year 30.1 Liquidity Ratio 30.2 Current Ratio 30.3 Acids-Test Ratio 30.4 Leverage Ratio 30.5 Debt to Equity 30.6 Debt to Asset 31. Activity Ratio 31.1 Receivable Turnover 31.2 Total Asset Turnover 32. Profitability Ratio 32.1 Net Profit Margin Ratio 32.2 Return on Asset Ratio 32.3 Return on Equity 33. Market Ratio 33.1 Earning Per Share 33.2 Other Financia l Ratio 34. Horizontal Analysis for Balance Sheet 35. Vertical Analysis for Balance Sheet 36. I ndustry Analysis of BOP with Other Firms 37. Business Volume 37.1 Analytical Comments

48 48 48 48 49 49 49 50 50 51

52 52 53 53 54 54 54 55 55 55 55 56 56 56 57 58 59 60

37.2 Trend Analysis Fig 37.3 Graphical Presentation 38. SWOT Analysis 38.1 Strength 38.2 Weakness 38.3 Opportunities 38.4 Threats 39. Pest Analysis 39.1 Political Factor 39.2 Economical Factor 39.3 Social Cultural Factor 39.4 Technological Factor 40. Suggestion for Removing Weakness 40.1 Internal Controls 40.2 Professional Training 40.3 Delegation Of Authority 40.4 Performance Appraisal 40.5 Transfer 40.6 Need Of Qualified Staff 40.7 Credit Card Facility 40.8 Decreased Administrative Expenses 40.9 Should Be Aggressive In Credit Policy 40.10 Technological Improvement 40.11 Staff Relationship 4 0 .12 Favoritism And Nepotisms 40.13 Marketing Policy 40.14 Avoiding Bad Debts 41. Recommendation for Student 41.1 Working in Different Department 41.2 Relationship between Theory and Practice

61 62 63 64 64 64 65 65 67 69 70 71 73 73 73 73 73 74 74 74 74 74 74 75 75 75 76 76 76 76 76

44. Conclusion REFERANCES & SOURCES 45. Annexes

78 79 80

DADICATED TO

OUR HOLLY PROPHET HAZRAT MUHAMMAD (PBUH)

ACKNOWLEDMENT
By the grace of almighty Allah, I have been able to compile my report. Without His help, I cannot accomplish any objectives in our lives. The omnipotent Allah bestows this ability, knowledge, strength and competence required for this report to me as boons. Special acknowledgement for our respected Instructor Fin 619 in charge internship program that provide this learning opportunity to complete our internship program and have a great practical experience in the one of the most popular bank of Pakistan The bank of Punjab . I am really thankful to all the people who guide and help me for the completion of internship program and to learn there and to make such report. I am greatly thankful to all there for their guidance,
Mr. Javeed Hussain Khan Mr. Anwar Yasir Branch Manager Operation Manager

For their corporation, guidance, information and the necessary records he provided me for the training and preparation of this internship report.

Munir Ahmed MBA Finance

PREFACE
The Important principle of work almost exists in every professional field. Practical knowledge makes man a technical person and enables him to do work promptly regarding his profession. According to ROGER SACHEM it is costly wisdom that is bought by experience The very distinctive feature of the degree of MBA is that it stress more on the practical aspect of the study, and observe the software and working environment in which organization doing work. How these software are helpful for organization or it is compatible with their work, Are the employees satisfied and easy to operate these software. Because we emphasize on these aspect and develop our capabilities in this field. The main purpose is to have some practical knowledge and experience of business especially.