Mission/ Vision Statement: Business Phillosophy

Mission/ vision statement
“STRONGER BANKING RELATIONSHIPS, INCREASING CUSTOMER

CONFIDENCE”
Prime Bank is a prominent Pakistani bank, providing

exceptional value to its customers, shareholders and
employees.
Prime bank competes in selected market niches on the basis of
superior service, innovation, specialized products and
professionalism.
Prime Bank’s activities focus on dedicated banking services for
the middle market and middle market and middle to large
corporations for there banking requirements.
Prime Bank is a socially responsible institution firmly believing
in the protection of the environment, peaceful coexistence,
and respect for human rights.
Team spirit, initiative, performance drive, and customer
orientation are key characteristics of the Prime Bank’s
employee and the Prime Bank’s culture.
BUSINESS PHILLOSOPHY
The bank is committed to being a sophisticated, prominent and

professional institution, providing a one-window service to its
customers.
The bank visualizes itself to grow into a specialized institution
catering to the needs of niche markets.
Prime bank’s activities primarily cover the provision of
dedicated banking services to the commercial middle market
Hailey College of Commerce 5

segments of the economy; however, selective focus is also
given to the corporate finance sector.
Prime bank’s operating strategy is focused on continuous
improvement of inter4nalprocedures and operating systems to
ensure a better control on the quality of its business and
operations.
ANALYSIS OF MISSION, VISION AND

BUSINESS PHILLOSOPHY OF
PRIME COMMERCIAL BANK LIMITED.
The mission statement of prime commercial bank limited expresses its purpose in a
way that inspires support and ongoing commitment.
It is a short and specific mission that is clear in its meaning and purpose. The
statement is articulated in a way that it is convincing and easy to grasp. The mission
statement is short enough to be recalled by anyone connected to Prime Commercial
Bank Limited.
The mission statement of Prime Commercial Bank Limited emphasizes on the
following elements:
BUSINESS
The mission statement answers the basic question i.e. the business the business of
the organization is to provide banking and financial services. The purpose or target
is to be the leading bank through strong commitment towards high quality services.
PURPOSE AND VALUES
Customers are the major stakeholders for and organization. This mission statement
focuses on the objective of the bank to increase the confidence of their customers by
creating strong banking relationships. This creates a sense of importance amongst
the customers and they get more inclined towards the organization.

The mission statement does not directly refer to any products or services provided
by prime commercial bank limited but view it in broader perspective. Strong
banking relationships mean providing better services and offer the best of the
products to its valuable customers.
Prime commercial bank has a mission/vision statement that clearly identifies its long
term as well short term objectives. It provides a focused dimension by narrating the
banks objectives and purpose with a clear picture of what it wants to achieve in
future. This statement resonates with the people working in and for the bank as well
as with different constituencies that it hopes to effect.
It covers the following elements:
CUSTOMERS
Customers is the major source of revenue for a commercial bank therefore it is the
bank’s strong commitment to provide exceptional services to its customers. The
vision of the bank is to be a prominent bank in Pakistan as far as satisfaction of
customers is concerned.
PRODUCTS AND SERVICES
Providing superior service, innovation, specialized products and professional

guidance is the main objective of the bank.
MARKETS
PCBL focuses on middle markets and middle to large corporations. It competes in
selected mark etches and caters to their financial requirements.
TECHNOLOGY

Bringing innovation in their existing products and services and introducing new
ones is the mission of the mission of the bank.
CONCERN FOR SUVIVAL, GROWTH AND

ROFITABILITY
PCBL keeps on improving upon its internal as well as external working and
operations in order to keep up with the pace of changing banking requirements.
That is the bank is committed towards growth and financial soundness.
PHILLOSOPHY
PCBL is committed to provide professional services to its worthy customers. Having
greater control over the quality of the business and providing better management
direction is its basic philosophy.
SELF CONCEPT
PCBL is a sophisticated, prominent and professional financial institution that
provides a one-window service to its customers. It is the banks distinctive
competence or major competitive advantage.
CONCRN FOR PUBLIC IMAGE

The bank is actively responsive to social, community and environmental concerns. It
is highly concerned towards environment protection, peaceful coexistence and
human rights.
CONCERN FOR EMPLOYEES

Team spirit, initiative, performance, drive, and customer orientation are key
characteristics of the prime bank employee and the prime bank culture. PCBL
treats it employees as valuable assets and focuses much on employee satisfaction and
motivation.

HISTORY AND PRESENT STATUS
Within the framework of the government’s policies, private sector groups were
invited to set up new commercial banks in the country.
Availing this opportunity, a group of Pakistani professionals with extensive

domestic and international banking and finance experience, decided to pool their
resource and latent with a sector group of influential, but like minded, business
houses in Pakistan and overseas to for the PCBL.
From inception, the professionals determined that Prime Commercial Bank Limited
would remain a “Management Driven Bank”, and indeed, drew up the terms of
reference for this collective partnership on that basis. Our strategy is focused on
continuing improvement of internal procedures and operation structures to have a
greater control on the quality of our business and to provide better management
direction.
Prime bank is the vision of a group of Pakistani professionals with extensive

domestic and international banking and finance experience. They teamed up in 1992
with a select group of successful and like-minded business houses in Pakistan and
overseas. Some of the foreign investors belong to a highly regarded, very sizeable
and well-diversified business group of Saudi Arabia.
During the initial years, prime commercial bank’s strategy was focused on
continuing improvement of internal procedures and operating structures, to ensure
a greater control over the quality of its operations. Commercial banking activities
were initiated at the time of inception in 1992. During 1993, two more business

divisions’ i.e. corporate banking and financial services were added. By 1996, PCBL
countrywide network of seventeen branches was in place and consumer banking
activities were accordingly launched.
Under the banks on going branch expansion program fifteen new branches have
been added during the years 2001 and 2002 while one more branch will open in
December 2002. This would raise the total number of branches to thirty three
focusing primarily on the middle market commercial banking segment while
blending in the fast growing consumer banking market.
Keeping in view the past performance and the probable future prospects prime
bank is focusing on rapid expansion to cater with those market segments, which are
still to be explored. Prime commercial bank’s initial objectives were capturing the
market by improving upon its internal procedures and to increase it financial
services span. Now it has acquired a comparatively larger market share and
customer confidence, therefore the next objective is to maintain this confidence
through strong and improved external as well as internal operations.
The main objectives of the management are now:
• To make the bank customer focused

• To plug the leakage of revenues and expenses
• To correct the structural flaws in the balance sheet
• To ensure internationally accepted accounting standards are followed in the
bank.
The bank would continue to maintain its primary focus on the middle-market
segment essentially targeting the commercial banking business of the segment. With
a view to getting into the consumer banking in a significant manner, the bank has
recently commissioned an independent consulting study for this purpose. Bank’s
operating procedures, credit processing and internal controls are being reviewed

and these studies have been instituted in order to further improve the quality of our
operations.
FACTS AND FIGURES

Prime commercial bank has completed ten successful years of its banking
operations. Now it is the 11th year of providing continuous customer services and
building stronger banking relationships within them. After ten years of well
controlled, yet sure and successful operations, the bank is now poised to move
forware rapidly to be at the cutting edge of financial services combining highly
efficient delivery systems with continuos product innovation. Therefore,
development of superior human skills and the latest information technology
platform are the cornerstones of Prime Bank’s overall strategy to be in the exclusive
club of winning banks of the future
Total assets of prime bank during the period from June 1992 to September 2002
grew at an annual compound rate of about 36 percent to Rs.19.5 billion. Within this
[period, shareholders’ equity grew from rs3300 mission to Rs.1.5 billion, deposits to
Rs.13 billion and advances (net) to Rs.8.1 billion. Profit before tax grew from Rs.1
million for the half year to June 1992 to Rs.235 million for the nine months ended
30th September 2002.
10 YEARS AT A GLANCE
Years 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Advances 1.0 1.5 2.2 2.6 3.1 4.4 5.0 5.6 6.8 6.9
Deposits 1.2 3.2 3.8 4.4 5.3 6.9 7.9 7.8 8.3 10.4
Assets 2.1 4.7 5.7 6.0 6.9 9.0 10.1 10.6 10.9 14.5
Profit 30.6 71.0 99.3 70.3 73.2 128.3 84.9 69.1 96.1 152.5
After tax

DEPOSITS
During the past ten years i.e. from 1992 to 2001 prime bank witnessed a stable
growth rate in its deposits portfolio. If we look at the growth rate of deposits during
the past ten years we find out that the deposits in 2001 are approximately 9 times of
what they were in 1992. The total deposits held by rime bank in 1992 were Rs.1.2
billion and this figure rose up to Rs.10.4 billion in 2001. The annual compounded
rate of over 27%.
Initial 6 years of rime bank experienced a compounded growth rate of 25% in its
deposits. The fiscal year July 1998 to June 1999 witnessed a poor economic
performance and rapid decline following the nuclear testing by Pakistan in May
1998. In this backdrop the overall banking industry witnessed certain fundamental
changes. The reason for decline in prime bank’s deposits portfolio in 1999 was this
recession in the economy. Prime bank deposits of all these adverse factors managed
to register a 6.5% increase in its overall deposits over the last year. And in 2001 the
bank’s deposits crossed the mark of Rs.10 billion which is 25% over the previous
year.
Deposits
12
10
8
Deposits
0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Years

Advances
The advances of the bank increased at an average rate of 48% during the first two
years of its operations. After that, this rate came down to 19% in 1995 and 1996.
The advances increased by 42% in the 1997 but this increase could not be
maintained in the following years. The advances increased by 1.5% in 2001, which is
the least growth rate amongst all the previous years. This was due to the recession
faced by the economy during the second half of the year due to the external shock of
September 11th event. The bank continued its policy of conservative provisioning
against non-performing loans in accordance with state bank of Pakistan’s
prudential regulations. The bank is adequately capitalized, comfortably meeting the
minimum paid-up capital requirements of SBP as well as the internationally
accepted minimum capital adequacy requirements with the capital adequacy ratio
measuring approximately 16% at the year-end as compared to the mandatory
requirement of 8%.
Advances
8
7
6
Advances
5
4
3
2
1
0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Years

ASSETS
The bank’s assets increased at a gradual and stable rate during the initial years, but
this rate declined during 1998, 1999 and 2000 due to the uncertainty prevailing in
the country. During 2001 the assets of the bank increased by 33% over 2000. This
was the result of opening of new branches. The bank’s strength lies in its expansion
policies and an increase in assets as a result.
A ssets
16
14
12
10
Assets
8
6
4
2
0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Years
The bank’s assets remained more or less unchanged during the recession
years due to uncertain envioriment prevailing in the country. The need of the hour

was to create and improve customer confidence in the policies of the banking sector.
Prime Bank very successfully managed to increase is assets form Rs. 10.9 billion to
Rs.14.5 billion in 2001 and a similar increase is expected in the following years.
Profit After Tax
Profit after tax shows he performance of the banks. An adverse decline in profit
after tax was experienced in 1995,1998 and 1999. But the bank managed to recover
from this recession and its profit after tax increases by 59% in 2001. This was made
possible due to improvement in net interest margin and non-interest income, each
increasing by over 21% over the previous year. Control over staff and
administrative costs was also maintained which increased by just 11%despite
additional expenses incurred pertaining to the planned opening of six new branches
during the year. The reduction in the corporate tax rate by 8% in the last Federal
Budget further encourager the bank’s management to undertake the expansion
plans and still shows a growth in profit after Tax.
Profit
180
160
140
120
Profit
100
80
60
40
20
0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Years

Total Assets of Prime Bank during the period from June1992 to
september2002 grew at an annual compound rate of about 36 percent to
Rs.19.5million. Within this period, shareholder’s Equity grew from Rs.300 million
to Rs.1.5million Deposits to Rs.1.3million and Advances (net) toRs.8.1million. Profit
before ax grew from Rs.1million for the half-year t June 1992 to Rs. 235 million for
the nine months ended 30th September 2002.
Banking Sector in Pakistan

The financial sector in Pakistan can be grouped into banking and non-banking
financial institutions (NBFIs). Banking institutions include large public sector
scheduled banks; private sector naks and foreign banks while NBFIs include
development finance instructions (DFIs), private sector investment banks, leasing
companies and Modarabas.
PUBLIC, PPRIVATE AND FOREIGN BANKS
The large public sector scheduled commercial banks, namely National Bank of
Pakistan, Habib Bank of Pakistan and United Bank Limited are owned by the
government of Pakistan. Although two other banks, Muslim Commercial Bank and
Allied Bank Limited were privatize in1992 the GOP still has significant stakes in
them. These five large banks are dominant in terms of total number of branches,
deposits and advances, collectively accounting for 78% and 77% of total deposits
and advances respectively. However, they are relatively less profitable than private
sector banks and foreign banks.
Private sector banks are relatively new compared to public sector banks. The Sharif
government opened up banking t the private sector in 1991. The new banks formed
as a result of this liberalization policy included Askari Commercial Bank, Bank Al
Habib, Siberu Bank, Prime Bank, Bolan Bank, Metropolitan Bank, Mehran Bank,

Schon Bank, Union Bank and Platinum Commercial Bank. There have been hiccups
along the way though as the corporate banking culture was still new to the country
and we had fiascoes like Mehran Bank and Capital Bank.
These banks are still very small in terms of branch network and level of operations.
They focus on very selective market segments where they are quite successful.
Despite a lower profile in total deposits and advances, these banks account for 22%
of the total profitability of the sector.
Owing to the inefficiencies of the public sector scheduled banks which stem form
their nationalization in the 70’s the relatively lower standing of the private sector
banks and the dollarisation of the economy, foreign banks have been able to
perform extremely well by expositing gaps in the local banking sector. There are 16
foreign banks operating in the country. ABM AMRO, American Express Bank,
ANZ Grindlays, Banks of America, Banquets Indosuez, Citibank, Deutsche Bank,
Doha Bank, Emirates Bank, AL-Mashriq Bank, Hong Kong & Shahnghar Banking
Corporation, Standard Chartered Bank, Rupali Bank, Societe Generate, IFIC Bank
and Habib Bank AG. The foreign banks have a strong presence in all the major
cities and are targeting high worth individuals and blue chip companies. Their
strategy is quite successful as they account for 34% of total sector profits, despite
having only 15% of deposits and 16% of advances.
FUTUTRE PROSPECTS
The recent wave of liberalization and financial reforms has raised questions about
the future prospects of the financial industry in general and the banking industry in
particular. In just four years the banking industry has expanded tremendously and
now there are more than two dozen commercial and investment banks functioning
in the country.
In times of slow economic activity and high inflation as is the case with Pakistan, the
financial sector as a whole is likely to experience depression with shrinking interest
margins and troubled assets because of bad debts.

Though the commercial banks in the private sector have so far given a satisfactory
performance since their inception, registering an overall growth in the deposit base
and profits and are maintaining healthy credit portfolios, the question that needs to
be bowered is about future profitability of the industry in times of intense
competition for chasing cheap deposits and risk worthy borrowers.
The savings rate in the country at about 15% remains one of the lowest compared to
other emerging economics like India (22%) Thailand (30%) and Indonesia (40%).
For a stable deposit base, which is imperative of the smooth functioning of the
financial sector to extend affordable credit o different sectors of the economy, the
country must have satisfactory savings rate.
At the same time deposits are becoming increasing expensive and lending rates, with
or without a cap on them cannot be raised by banks beyond a certain limit. Blue
chip clients, whom constitute the major portion of most of the banks borrowers, d o
not pay beyond a certain lever of interest and hence banks are facing a tight
squeeze.
The average cost of deposits for a bank in Pakistan is 8 to 10 percent; prime lending
rates vary from 13 to 14 percent. The rate of returns on government securities is
fairly attractive, where all scheduled commercial banks are required by prudential
regulations to keep 20 percent of their time and demand liabilities.
The key to success for commercial banks is their deposit base and this is where the
real crunch is expected, particularly for the newer banks. The deposit base is
expected to grow but will probably not be able to maintain a rate of 20 percent
while the established banks should not have a problem. The new commercial banks
like AL-Habib, Soneri, Askari, Union and Bank of Punjab are no expected to be any
major competitors for the established their share in the national deposit base is
expected to stay meager at around5% with the share of foreign banks at less than
25%. The nationalized banks have the lions share and along with ABL and MCB
account for about 80 percent of the national deposit base. Still, costs remain
extremely high in the public sector banks. Inefficiencies and a carefree and
indifferent attitude as service is concerned are matters that have yet to be controlled
b the top management of most of Pakistan; s public sector banks. Foreign banks do

have a small share, but his is more by choice than by chance. The policy in general is
to maintain deficiency and keeping costs at a minimum.
Also, as opposed to local banks, foreign banks do not really have to work very hard
to reap in rewards because of the inefficiencies in the lager public sector financial
institutions. This advantage however, may not last much longer as most public
sector banks are to be privatized and they are already undergoing a transformation
of attitudes towards service and efficiency.
The industry trends should be an eye opener for all. Pakistani banks have an almost
80perecnt of the market share, but one needs to look at profit margins of both
foreign and local banks to really assess the inefficiencies or the lack thereof.
Many of the newer banks have no provisions in their portfolios for bad debts, which
might not appear important at present but in a period of say three t four years,
when loan recovery starts this shortcoming in the portfolio could become a serious
threat to earnings. The prospective investor should definitely keep this in mind
when playing the stock Market. Perhaps it would be prudent if the State Bank of
Pakistan makes it mandatory for all banks to make their portfolios public. Most of
the commercial banks are nor expected to make any significant pay off in the near
future as they are in the growth phase, building their equity base for maintaining
capital adequacy, 10 percent for new banks and 7.5 percent for established ones.
The recent mushrooming of banks in the country could have become a boon if the
growth in the economy had been proportional. Unfortunately the growth in the
industry has been slow and hence banks have had to fight for customers. The race
for intensifying deposits has already started and the trend in 1996 shows that people
are moving away from long term deposits making it increasingly difficulty for the
smaller banks to develop a strong deposit base. With the economy so far not
showing any substantial and fundamental improvements and with retardation in
industrial growth, banks should not be looking at a significant growth in the shot
term. However, with prospects of an improvement in the operational side as well as
the hope that industrial growth will pick up, banking is looking at a bright future in
the country.

In comparison with other emerging economies, Pakistan has a relatively
underdeveloped financial sector in terms of the depth of the financial system and the
extent of financial intermediation. The depth of a financial institution refers to the
use of money and close money substitutes such as savings and time deposits, which is
very low in Pakistan.
However, with the steps being taken to improve financial infrastructure in the
country, the drive to streamline the large public as well as private sector banks has a
greater probability of being implemented.
ORGANIZATIONAL STRUCTURE OF
PRIME COMMERCIAL BANK LIMITED.
Separate page

MANAGEMENT HIERARCHY
The management of Prime Bank has been divided into different divisions and
departments that wok under the following heads:
Head of Risk Management Mr. Khalid Imran

Exective Vice President
Commercial Banking Group & Mr. Amanullah Khan

General Manager Branches Exective Vice President
International Banking & Treasury Mr. S.M. Azam Zaidi
Exective Vice President
Chief Financial Officer Mr. Hamid Imtiaz

Senior Vice President
Audit Mr. M. Shafiq Naeeem

Mr. Moghis Bokhari

Human Resourse & Management Senior Vice President
Credit Administration Mr. M Usman


Operations Mr. F.S. Azam Ali
Compliance Mr. Gul M.Khan

Group Vice President
Legal & Corporate Affairs Ms. Shaheen Ali

Systems & IT Syed Hassan Rizvi

The network of Prime Bank is being divided into different regions according to the
location.
These regions:
• Lahore region
It includes 7 branches.
• Central region
It includes 5 branches
• Northern region
It has 6 branches.
• Karachi region
It includes 10 branches.
• Southern region
It has 4 branches
The chart on the next page illustrates the heads of each branch under its respective
region.

BRANCH HIERARCHY
OF PRIMECOMMERCIAL BANK
G.T Road Branch Gujranwala.
Branch Manger
Manager Operation
Managers
Assistant Manager
Officers
Deputy officers
Assistant officers
Clerks
Peons and Guards

The branch manager is the head of the branch is assisted by the manger operations
in carrying out the man functions of the branch. Remaining organizational
structure is divided according to the requirements of different departments. There
are currently three managers, two deputy managers, eight offices, 5 deputy officers
and 2 assistant officers working in the branch. The total number of employees
working in the branch is 20.
EMPLOYEE NUMBER AND DESIGNATION

The total number of employees working in the Prime Bank’s network is above
1000at present.
Prime Bank, New Garden Town Branch has a total of 20 employees working with it.
These employees are working in the following departments.
• Cash and deposits

• Account opening
• Accounts
• Foreign Remittance
• Foreign Trade
• Credits
• Financial Services
• Compliance
There are 6 employees in the cash and deposits department, 2 in accounts, 1 in

account opening, 1 in foreign remittance, 2 in foreign trade, 2 in credits, 2 in
financial services and 1 in compliance department. The manager operations

monitors the departments related to bank’s day-to-day operations and the branch
manager monitors the foreign trade and credits. All the employees are permanent
except for tow. These two employees have been recruited on contract basis and their
contract is renewed every year. Amongst the permanent employees, 3 are managers,
2 are deputy managers, 8 are officers, 5 are deputy officers and 2 are assistant
officers.
MARKETING MIX
Marketing is the task of creating, promoting and delivering goods and services to
consumers and businesses. Organizations identify and profile distinct group of
buyers who might prefer or require varying products and marketing mixes. The
customer seeks for value and satisfaction. The organizations can increase the value
of the customer offering in several ways e.g. raising benefits, reducing costs etc.
marketing mix is a set of marketing tools that the firm uses to pursue its marketing
objectives in the target market. These marketing tools are known as 4 p’s of
marketing. These four marketing tools are viewed as4c’s by the consumers.
4 P’s 4 C’s
Product/ Service Customer Solution
Price Customer Cost
Place Convenience
Promotion Communication
To identify the customer needs and fulfilling hem is the basic objective of an
organization. Marketing is not just satisfying your customers, you have to delight
them and this can be done by acting upon this phrase.
“Under Promise and Over Deliver”
Prime Commercial Bank provides a winning combination of products and services

to its prime customers. It is one of the country’s leading commercial banks in
private sector, which ensures complete security, and reliability in all-financial
transactions.

A bank’s performance lies in its performance and commitment to its charter and its
customers. As Prime Bank enters the second decade of services these core values
remain the cornerstone of the bank’s philosophy.
 PRODUCT
A product is anything that can be offered to a market to satisfy a want or need and
a service is an act or performance that is essentially intangible and does not result in
the ownership of anything. What products or services have to be offered to the
target market depends on the market requirement and also the organization’s
profits. The organization will offer those products and services, which result in
maximum profits and minimum costs.
A bank is an organization rather a financial institution that provides products such
as different types of deposits and services like foddering financing facilities to its
customers.
Prime Commercial Bank offers a diversified line of products and services to its
customers. The products and services offered by Prime Bank are:
 Consumer banking
 Corporate finance
 Financial Services
 Current Accounts
 Saving Accounts
 Visa Cards
 Master Cards
 Traveler’s Cheques
 Foreign Currency Accounts
 Online Banking

 SWIFT
Prime Bank continues to grow and today ranks in the top tiers of all banks. Prime
Bank’s deposit rates are flexible, secure and have high returns.
Current Account
It is the major type of account, which provided by almost every bank. The
requirements and procedure for opening a current account are given in the
functions of account opening department. The minimum requirement for current
account is RS.5000. But lesser amounts are also accommodated to attract more
clients.
SAVSING ACCOUNT
Prime bank offers various saving and fixed accounts. Minimum requirement for a
saving account is Rs.5000. Examples of these saving accounts are Primax anchor,
Primax classic, Primax exclusive and other deposits. Requirements are a different
for each of these depending bases of calculation is given on the next page.
Prime bank’s three special deposits are:
 Primax classic
 Primax anchor
 Primax exclusive
PRIMAX CLASSIC
The most popular scheme is that of Primax classic. A special product offered by
prime commercial bank to its clients. The profit is paid monthly on daily product
basis. There is no restriction on withdrawals. The rates are given below:
TIERS PROVISIONSL RATES

Rs: 10000000 & above 7.00%
Rs: 1000000 to Rs: 9999999 6.75%
Rs: 100000 to 999999 6.50%
Rs: 1 to Rs: 99999 1.00%
PRIMAX ANCHOR

The profit is paid monthly on minimum balance basis. This practice of payment of
profit on minimum balance is adopted to attract maximum amounts from the
customers at any time of the month. The following table shows the rates.
TIERS PROVISIONSL RATES

Rs: 50000000 & above 7.75%
Rs: 25000000 to Rs: 49999999 7.50%
Rs: 5000000 to 24000000 7.25%
Rs: 500000 to Rs: 4999999 7.00%
Rs: 1 to Rs: 499999 1.00%
PRIMAX EXCLUSIVE
It is a specialized term deposit scheme introduced by Prime Commercial bank.

Profit is paid on maturity. The rates for profit are given as follows:
TIERS 3MONTHS 6MONTHS

Rs: 5000000 and above 8.50% 8.75%
Rs: 1000000 to Rs: 4999999 8.00% 8.50%
Rs: 100000 to Rs: 999999 7.75% 8.00%
Rs: 25000 to Rs: 99999 7.25% 7.50%
SPECIAL NOTICE DEPOSITS

These are the deposits, which can be drawn from the bank by giving a prior notice
to the bank. Minimum balance required for these types of deposits is Rs.5000. The
profit is paid on maturity of period. The rates on the bases of which the profit is
paid are:
7 to 29 days notice 5.50%

30 days notice 6.50%
OTHER TERM DEPOSITS

These term deposits are offered for satisfying all classes of customers. The minimum
balance require=Ed for this type of account is Rs.5000 and the profit is paid on
maturity according to the following rates.
1 month 7.75%
1 year 9.00%
5 years 10.00%

SAVING DEPOSITS
These are the deposits on which profit is paid after every six months on minimum
valance of the month.
TIERS Rates
From Rs: 5000 and above 8.00%
From Rs: 1 to Rs: 4999 1.00%
All these profit rates quoted above are provisional rates with affect from November
01, 2001.
VISA AND MASTER CARDS

Prime Bank issues
 Master gold
 Master silver
 Visa gold
 Visa silver
The procedure for issuance of these cards is given in the following pages.
ONLINE BANKING
Prime bank offers the online banking facility to its customers in limited number of
branches.
 Cash deposits
 Cash withdrawals
 Transfer of funds
 Account enquires
Statement of account on requecurrently 8 branches is working online.
SWIFT
Prime bank provides a fast system for opening a letter of credit by using SWIFT,
society for world wide international financial transactions.
FINANCIAL SERVICES
Prime Bank deals in the stock market on behalf of its customers. The brokerage
facility is provided to the clients.
ROREIGN CURRENCY ACCOUNTS

Prime bank also offers to its customers the facility of opening an account in any
foreign currency. Usually US $, pound sterling and euro are preferred by the bank,
but if a client requests for opening an account in any other currency, it is being
allowed after having permission from the treasury.
Minimum requirement for a current and saving US $ account is $5000. Minimum
requirement for saving and current accounts in euro is 10,000 euros.
TRAVELER’S CHEQUES
Prime bank does not have any traveller’s cheques of its own but it issues the AMES
traveler’s cheques.
CREDIT CARDS
Prime bank does not have its own visa master cards. It issues two basic types of
credit cards.
MASTER CARD VISA CARD
Silver Silver
Gold Gold
PROCEDURE:
 The procedure of issuing a master card or visa card is as follows.

 Prime bank issues the credit cards through Arab financial services (AFS)
Bahrain.
 The function of issuance of credit cards is being centralized in PCBL new
garden town branch.
 A request for the issuance of credit cards is received. It can be with or
without photograph. A photograph is a must in case of shaky signatures.
 Then this request along with al the necessary documents is sent to the head
office for approval, with a covering letter after blocking the amount.
 The amount blocked is double the amount of the credit card as security plus
charges.
Charges are 2-3%
 The request after approval is sent to AFS Bahrain.
 The credit card is then issued.
 Settlement with AFS is done through treasury.
 Other branches recover the dues from their client, send to treasury and they
are then being sent to AFS.

 Clients can make complaints if the card is being miss utilized or lost.
Billing
Billing is done on monthly basis. Own client is not charged any fee.
Renewal charges:
Renewal charges for master card are $ 70 and for visa cards $ 50.
 PRICE
It is second important tool of marketing mix because it plays a major role in
determining the customer’s choice. Also it is the only marketing tool that results into
revenue. The banks offer advances to their clients by charging ascertain rate of
mark up or interest. This mark up or interest charged is the price. The customer
makes a comparison between the prices offered by other financial institutions and
Prime Bank and then selects the most suited offer.
The charges are stated in a schedule of charges for every facility. Some of them are
given on the next pages. These charges relate to
• International banking
• Domestic Banking
In Banks, price can be categorized under different head such as:
• Handling charges
• Commission
• Mark up

International Banking
(Schedule of charges)
Letter of Credit:
Rates
First Quarter Each Subsequent Minimum
Or part thereof Quarter charges
Or part thereof
1. Annual L/C volume 0.40% 0.15% Rs:500
Upto Rs: 25 million
2. Annual L/C volumes over 0.30% 0.10% Rs:500
Rs: 25 m upto Rs: 50 million
3. Annual L/C volumes over 0.25% 0.10% Rs:500
Rs: 100 million
Import L/C
Service charges 0.10%(flat), min
On foreign exchange Rs: 150
Transactions

Exports:
Processing charges
For Export
Registration Rs: 200(flat)
Letter of Credit
(a) Advising Rs: 350(flat)
(b) Amendment Rs: 250(flat)
(c) Conformation 0.25% per quarter or part thereof min.
Rs: 250
(d) Transfer of export Transfer Rs: 350(flat)
L/C
C. Collections:
(Foreign currency)
(i) Outing clean/cheques Rs: 100 or equivalent to foreign currency
(ii) Outgoing
Documentary/export Rs: 200(flat)
Remittance:
(Foreign currency)
(i) Outward (a) F.T.T.----US$ 5 or equivalent Fcy+Foreign Telex/

Fax/SWIFT charges Rs: 300/-
(b) F.D.D.---US$ 5 or equivalent Fcy
Rs: 250 (flat) or equivalent US$ 5 or equivalent
(ii) (a) Inward Nil,
If proceeds are credited to an account with us.

(b) Home Rs: 3 plus cost of money order or reimbursement
Telegram charges when TT is requested. No
charges
If funds go to Prime Bank Branch.
(iii) Traveler’s Cheques

(a) Issuance 1.00%
(b) Encashment 0.50%
Domestic Banking
(Schedule of charges)
Remittances:
(i) Drafts, MTs and TTs upto Rs: 10,000 Rs: 20 (flat)
(ii) Drafts, MTs and TTs from Rs: 10,001
to Rs: 100,000 0.10%, Minimum Rs: 200
(iii) Rs: 100,001 & over 0.05% Minimum Rs: 200
(iv) Cancellation of pay order/demand draft Rs: 20
or customers request
(v) Issuance of State Bank of Pakistan cheque Rs: 500
(vi) Issuance of counter cheque (loose cheque) Rs: 100
(vii) Inter-branch cheque Encashment facility Rs: 250 Minimum 0.10%of
Transaction value
(viii) Online inter-city Transaction upto Rs: 250(flat) 0.10%of value
Over Rs: 250,000 transaction
Miscellaneous
(i) (a) Stop payment
Instruction Rs: 200 per instruction (Rupees
account
Or US$ 5 for foreign currency
account

(b) Cheques /Instruments
returned unpaid (due to Insufficient
balance)
Inward clearing Rs: 200 per item
Inter-branch Rs: 200 per item
Over the counter Rs: 200 per item
(ii) Out of pocket expenses
(for banking service not otherwise Actual Minimum Rs: 50
specified)
(iii) (a) Inspection charges (1) Actual +Rs:500(within municipal
limits)
(2) Actual +Rs: 1000(outside
municipal
limits)
(b) Godown rent Actual
(c) Godown staff salaries Actual
(d) Delivery charges in absence of
Godown keeper
(e) Issuance of Delivery order Rs: 200 per Delivery Order
(iv) Services chargers of 0.50%flat shall be collected
On all applicable Government securities
Encashed within 90days of issuance
(v) Postage and Telex charges
(a) L/C import Short Telex/SWIFT Rs: 700
Short Telex/SWIFT Rs: 1500
(b) L/C import
Amendment Rs: 500
(c) L/C Export
Postage charges Rs: 100
(d) L/C export/Collection
Telex/SWIFT charges Rs: 300
(e) Mailing/delivery of
Cheque book Rs: 100
Schedule of charges for Financial Services Department

1. Share Brokerage & Safe Keeping Charged
“Physical Share”
(a) Individuals 0.5% per annum safe keeping handing
charges
Based on market value off portfolio size at
the
Quarter end. 0.50% Activity charges on
value
of transaction.

(b) Institution 0.25% p.a (to be charged quarterly)
0.125% p.a. (to be charged quarterly) on
Portfolio size of Rs: 100 million and over
2. Share Brokerage Charges
(a) (for Regular Transactions) 0.8% on value of transaction
“one way commission in case Minimum Rs:0. 08 per share for share
prices
of Trading in same settlement” less than Rs:15 +out of pocket expenses
(b) Shares Brokerage Charges Share Price Range Commission
(for trading-within clearing) Upto Rs: 14.99 Rs:0.
08/Share
Rs: 15 upto Rs: 29.99 Rs:0. 08/Share
Rs: 30 upto Rs: 99.99 Rs:0. 08/Share
Rs: 100&above Rs:0. 08/Share
CDC Charges
Description Charges
Initial Deposit Fee Rs:0. 01 per Share
Transaction Fee Rs:0. 006 per Share (No fee in case of trading
In same settlement)
Month and Custody Fee 0.01%p.a. (charged monthly)
Withdrawl charges Rs:0. 1per Share (for physical)
Rs:0. 1per Share (from CDC)
Sub Account Fee
(a) Individual Rs: 1000 (one time)
(b) Institution Rs: 5000 (one time)
Monthly Fee For Account
(a) Individual Rs: 200
(b) Institution Rs: 500
CDC Statement Print Rs: 15 per share
Courier Charges As per Schedule of Charges
Share Transfer Stamps Actual
Free Banking Services
 Customers maintaining deposit balance of Rs.1,000,000/- and over or

equivalent in other approved currencies in personal accounts (which exclude
partnership account and company accounts) will receive the following
services free of change:
 Inward and / or outward remittances (foreign currencies).
 Issuance of drafts/ pay orders / mail transfers (domestic banking).
 Cancellation / issuance of duplicate D.D & P.O (foreign currency and/ or
domestic banking).

 Standing instruction fee.
 Stop payment instructions
 Mailing / delivery of chequebook.
 Confirmation of balance to auditors.
 Obtaining credit reports on behalf of customers.
 Issuance of financial/credit worthiness certificate.
 PLACE
The location of the bank plays a vital role in making its operations profitable. If the
bank is located in some business center then it will be very easy for it to attract
business people as its customers. Prime commercial bank is concerned either
targeting the middle market and therefore it has most of its branches at places
where it can reach its targets customer easily. The branch network of PCBL is given
as follows:
LAHORE
 Head office
Address: - 77-y, Phase 111, commercial Area, D.H.A.
Egerton Road
Address:- Ground Floor, Aiwan-e-Iqbal Complex, Building No.3, Egerton Road.
Gulberg
Address:- 61- Main Gulberg
D.H.A.
77-Y,Phase 111, D.H.A.
New Garden Town

Address:- Ground Floor; Block No.2, Awami Compplex, Usman Block, NGT.
Allama Iqbal Town
Address:- 20-Gulshan Block, Allama Iqbal Town
Circular Road
Address:- outside Shah Alam Gate, Main Circular Road
Township
Address:- 849-D.Faisl Town, PECO Road
Badami Bagh
Address:- 343- Circular Road, Badami Bagh
KARACHI
 Abdullah Haroon Road
Address:- State Life Building No.11, Abdullah Haroon Road
Jaodia Bazar
Address:- NP 12/74, Muhammad Shah Street, Jodi Bazar
 I.Chundrigar Road
Address:- Nadir House, I. I. Chundrigar Road
 Clifton
Address:- 13-C, 7th Zamzama, Commercial Lane, Clifton
 D.H.A.
Address:- World Business Center, Main Korangi Road, Phase I, D.H.A
 Sind Industrial Estate (S.I.T.E.)
Address:- Plot # B/2 Estate Avenue Sind Industrial Estate
 North Nazimabad

Address:- Almas Square, Plot No. SD-5, Block G, North Nazimabad
 Cloth Market
Address:- Cloth Market, New Naham Road Off. M.A. Jinnah
 Shahrah-e-Faisal
Address:- Progressive Center, Shahrah-e-Faisal
 North Karachi
Address:- ST-3, Sector 12-A, Industrial Area.
Islamabad
 Blue Area
Address: - Redco Plaza, 78-E, Blue Area
 F-10 Markaz
Address: - 7-L, F-10 Markaz
 Mirpur A.K
Address:- Sector B/2, Allama Iqbal Road

Peshawar
Address:- 35-The Mal
Rawalpindi
Address:- Century Tower, 6- The Mall
Gujranwala
Address: - Al-Majeed Centre, G.T.Road Gujranwala
Gujrat
Address:- 2-Prince Fan Colony, G.T. Road
Turbat
Address:- Main Bazar

Quetta
Address:- 1-25/14-15 Qandhari Bazar
Hyderabad
Address:- CB 474, Opposite Cantt, Policy Station, Saddar
Sukhur
Address: - Shaheed Gunj
 PROMOTION
Prime commercial Bank does not actively participate in promotion of its products
and services through advertisement and other promotional schemes.
Initially, the bank focused on the upper class customer’s only and offered products
for a limited class of people. But now the strategy has been changed and the bank is
now targeting the middle market also. The products offered are of diverse nature to
cater the needs of maximum number of people.
Prime Commercial Bank only advertises about the opening of its new branches.
Communication of information about new branches is being made to general public
through newspapers.
Customer Oriented Attitude

Prime Commercial Bank values its customers. Customers’ complaints are
encouraged because it gives an opportunity to know the needs of the customer and
build more confidence in them.
Most of the promotional efforts are done through
 Direct marketing
 Public relations

Prime bank sometimes gets suggestions and recommendations from its good
customers.
Branch layout is being designed in such a way that more and more customers are
attracted. Some of the branches of PCBL have a very good entrance and outlook but
many still need to be improved.
MANAGERIAL POLICIES
Managerial policies include all those policies which are adopted by the bank in
performing all it internal activities as well as external operations. Different policies
are required in order to introduce innovation and ensure maximum operational
efficiency at minimum cost.
Policy formulation process:
Any policy that is being suggested is to be approved by the beard of directors.

Before this, the management of the bank takes up the affairs that are to be discussed
in the board meeting and the agenda is prepared. Circular is sent to the persons
who have to attend the meeting. And the policies and issues are discussed for
possible approval or rejection in the meeting. Prime Commercial Bank has its policy
making function centralized to the upper management. The upper management
after making the policies communicates them to the respective departments and
branches. The meetings for policy making are held as and when required. Lower
management loses not take part in policy formulation but can give suggestions.
The policies of Prime Commercial Bank are as follows:
Financial policies

Prime Commercial Bank believes in capturing the market share through market
development. More and more branches are being opened to increase the deposit
portfolio of the bank. Providing in time and better service to the customers is also a
successful strategy to attract more deposits. Prime bank mainly focuses on
individual accounts as compared to company accounts and also they prefer current
accounts as compared to saving or term deposits. This policy is adopted because
current deposits do not cost the bank; on the other hand that bank has to pay cost
against term deposits.
Deposits Policy
The policy of Prime Bank is to raise those deposits in which its costs are lease. The
best option is that of current accounts because the bank has to pay zero return on
these deposits. Saving and term deposits are also good but since the bank has to pay
some return on them therefore only current deposits are preferred.
Liquidity Policies
Prime Bank management has a policy of keeping an adequate reservoir of liquidity
instruments.
Lending Polices
Lending polices of Prime Bank are in accordance with the prudential regulations
issued by State Bank of Pakistan.
Prime Bank adopts a very conservative approach while advancing loans. The policy
is to grant loan to referred people or organizations only. This is to reduce the
element of risk.
Adequate security must be acquired before advancing any sort of loan. The nature
of the security should be such that it is readily marketable and easily transferable.
The size of the loan portfolio is to be based on rational issues.
The parameters related to the borrower for granting any financial assistance are as
follows:

• Character
• Capacity
• Capital
• Collateral
• Condition
The preference of Prime Bank is to issue short term secured loans. Long-term loans
are only given to trustworthy selected clients. Usually non-fund based facilities are
preferred.
Marketing and Innovation Policies

Every person working the bank is responsible for marketing of the bank and its
products. Prime Bank has its marketing departments in very few branches. All the
employees are doing the function of marketing and publicity.
Advertising
The awareness about the products and prices is not made through advertisement.
Prime Bank does not believe in capturing market through extensive advertising.
The advertisement of new branches is given is the newspapers. I happened to come
across a prime Bank’s advertisement banner on the business recorder site also.
Prime Bank adopts a conservative approach towards innovation. For example every
other bank is providing ATM facility but it is still not available to Prime Bank’s
customers.
ACCOUNTING POLICIES
1. Status and nature of Business

Prime Commercial Bank limited (the Bank) having its registered office at 77Y,
D.H.A, Lahore (PAKISTAN) was incorporated in Pakistan on September 30,1991 as
a Public Limited Company under the Companies Ordinance, 1984 and is listed on al
Stock Exchanges of Pakistan.
The bank is fully accredited scheduled commercial bank and is principally engaged
in the business of banking. The Bank had22 branches operational at the year-end
while one more branch will be operational by end of February 2002.
2. Basis of Presentation
Accounting convention
2.1 These accounts have been prepared under this historical cost convention except
as stated in note 4 and are in conformity with the International Accounting
Standards (IASs), as applicable in Pakistan the banking companies Ordinance, 1984
in all material respects.
2.2 In accordance with the Islamic Banking System, trade related modes of
financing include purchase of goods by the Bank from its customers and immediate
resale to them at appropriate mark up in price of deferred payment basis. The
purchased and sale arising under these agreements are not reflected in these
accounts as such, but are restricted to the amount of facility actually utilized and the
appropriate portion of mark up thereon.
3. Statements of compliance
The accounts have been prepared in accordance with directives issued by the State
Bank of Pakistan, the requirements of the Banking Companies Ordinance, 1984 and
IASC, as adopted in Pakistan.
4. Basis of Measurements

Monetary values of elements of financial statements have been measured on
historical cost invention except for those items, which are required, by status or the
IASs to be reported on any other basis.
5. Summary of Significant Accounting Policies

5.1 Financial Instruments
The Bank account for regular way purchased and sales of financial assets using
“Settlement Date Accounting” by recognizing at the time the instrument is actually
transferred to the enterprise. Gains and losses on reorganization of financial assets
and liabilities are included in the profit and loss for the period in which it arises.
5.2 Investments
Held for trading securities
These are investment securities that are held for short periods of time principally
for generating profit form short-term price fluctuations.
Available for sale securities
Investment securities intended to be held for an indefinite period of time, which may
be sold in response to need for liquidity or change in equity prices are classified as
available for sale.
Listed Securities
These are marketable securities measured at market value prevailing at the balance
sheet date.
Unlisted securities
Where active market does not exist, these are stated at cost less provision for
permanent diminution in value, if any.
Held to Maturity Securities
Investment securities with fixed maturity where management has both the intention
and the ability to hold to maturity are classified as held to maturity.
5.3 Lending/Borrowings against Securities

Bank enters into transactions of repurchase and resale of Government Securities at
contracted rates for specific periods of time with other financial institutions.
5.4 Advances
Advances are stated net of provisions against non-performing advances, if any,

which is taken to the profit and loss account. Advances are written off when there is
no realistic prospect of recovery.
5.5 Fixed Assets and depreciation
Tangible
(a) Owned
These are stated at cost less accumulated depreciation. Depreciation is computed at
varying rate by taking inconsideration the estimated useful life of the related assets,
using straight-straight-line method.
(b) Leased
Assets subject to finance lease are stated at cost less accumulated depreciation.
Depreciation on leased assets is provided from the date of the lease agreement using
straight-line method at the rates stated in note 12.
Intangible
These are stated at cost less accumulated amortization, which is, computed@20%
by taking into consideration the estimated useful life of the related assets, using
straight-line method. Gains and losses, if an, on disposal of fixed assets are taken to
the profit and loss account.
5.6 Taxation
Current
The charge of current tax is based on the result for the year as adjusted for the
items which are non assessable or disallowed.
Deferred
The bank accounts for defend taxation using the liability method on all significant
timing differences arising form differences between the carrying amount of assets

and liabilities in the financial statements and the corresponding tax basis used in the
computation of taxable income.
5.7 Foreign Currencies
Foreign currency transactions are accented for at exchange rated prevailing on the
date of the transactions.
5.8 Employees Benefits
Defined Contribution Plan
The bank operates an approved contributory provident fund scheme through a

trust for all its permanent employees. Equal contributions are made to the fund on a
monthly basis by the bank and the employees are at the rate of8.33% per month of
the basic salaries.
5.9 Revenue Recognition
Profit on advances and investments are recognized on an accrual basis, except

income, if any, which warrants suspension in compliance with the Prudential
Regulations of the State Bank of Pakistan. Commissions earned in letters of creditor
and a guarantee is also recognized in an accrual basis. Dividend income is
recognized when right to receive payment is established.
5.10 Cash and Cash Equivalents

Cash Equivalents are held for meeting short-term cash commitments and comprised
cash and balances with State Bank of Pakistan and other banks.
5.11 Derivative Financial Instruments
Derivative financial instruments including forward foreign exchange contracts and

other financial instruments are recognized at cost (including transaction costs) and
subsequently measured at fair value.
5.12 Acceptances

Acceptances comprise undertakings by the bank to pay bills of exchange drawn of
customers. The bank expects to settle these acceptances simultaneously with the
reimbursement form the customers. Acceptances are accounted for as off balance
sheet transitions and are disclosed as contingent liabilities and commitment.
WORK DONE BY ME
As every body knows that "Knowledge without practice is sterile "In order to
give vent to this idea an Internship program of two months has been
arranged in different esteemed organizations during M. Com. In this regard
on 15,July 2003, I was asked by my Principal to go to Prime Bank Ltd to have
an internship of two months thereof. In the Prime Bank Ltd I really enjoyed
working with the staff of G.T Road Branch Gujranwala and having a wish to
be employee of PCBL. It was almost impossible to work in all the
departments within that limited time. But on my request, the staff of the
branch provided me the opportunity to work in the different departments for
the sake of practical knowledge. I feel highly indebted to work in the
Gujranwala Branch on the request of the manager of that branch Kamran
Mehmood, because I learnt a lot in that branch.

On my first day of Internship, Manager handed me over the charge of
Assistant to Accountant.
As three departments namely the Manager in this particular branch was managing
Accounts, Cash and Billing, and Clearing. I started my practical training by
checking the cheques for withdrawals and entering them into token book. This was
the routine work that I had done it daily. At the time of closing exact position of
cash in hand, Receipts and Payments were evaluated. The Manager and the
Accountants duly signed this evaluation.
Secondly I was advised by my Manager to be remained vigilant about the

fake cheques giving some instructions for the scrupulous examination of
cheques like signature verification from specimen card. Unfortunately the
branch where I got my Internship was not computerized, all the things were
to be done manually. Right after two weeks, the date of balancing came. Here
balancing means balancing of ledgers of Current Deposit and Saving
Deposits. The balancing of Current Deposit Ledgers was done on weekly basis
while Saving Deposits Ledgers were balanced on semi monthly basis.
Prime Bank Ltd collects utility bills on behalf of WAPDA, Sui Gas
Companies, and Pakistan Telecommunication Corporation Limited by
putting the stamp on the utility bills “Paid”, Date of payment, Signature of
the officer receiving the utility bills. I collected bills of LESCO, PTCL and
SNGPL during period of my internship. After receiving utility bills a list is
made on the form that is called Bills scroll form. One copy of the scroll is with
the bank for evidence whereas the original copy with the receipt of the bills is
sent to the billing department of the respective corporation. The bank charges
commission on the bills.
After one month I came under the supervision of the Cashier who got me to
know, how the books of cash are balanced at the closing of each day. I too

learnt to prepare General Ledger, which is called as the mother of all books
used in the branch. It was really a tough and daunting task.
After Six Weeks My Manager tells me about the transfer book, which keeps
the record of the transfer of funds between clients of bank.
During my internship training in the PCBL as I mentioned that I have worked

in different departments & seats and learnt the followings experience.
OPENING NEW ACCOUNT BASICS
During the span of mine internship in PCBL I learned and observed a lot of
about the opening of an account. Basically I think that the opening of an
account is the establishment of a contractual relationship between the banker
and the customer. By opening an account at a bank a person becomes a
‘customer’ of a bank. Further I am going to express the basic requirements
and steps involved in the opening of an account.
INVESTIGATION
Before opening an account PCBL as like the other banks in Pakistan

ascertain whether or not the person who is going to open the account is a
desirable customer or not. Then PCBL determine the prospective customer’s
integrity, respectability, occupation and the nature of business by the
introductory references given at the time of account opening. Negligence in
this informal preliminary investigation may result in serious consequences
not only for the banker concerned directly but also for other bankers and the
general public who may be affected indirectly. In Lad broke & Co. V Todd
(1914), the banker did not obtain introduction at the time of opening the

account, and it was construed a negligence within Section 82 of the Bills of
Exchange Act 1882.
In order to further strengthen and streamline this process, the Federal
Ombudsman of Pakistan, vide his ruling on complaint No. II/31/5186 has
directed the banks to retain with the account opening form a Photostat copy
each of the National Identity Cards of the person desiring to open an account
as well as that of the introducer. As per these directions, the concerned
Branch Managers are required to obtain the original National Identity Cards
along with their Photostat copies and then return the original after attesting
the authenticity of the retained copy.
How to open an account (in general)
Before opening an account in PCBL I observed that the following points must
be considered in this regard.
1. Another account holder of the bank should properly introduce the new
customer.
2. The account holder should sign the account opening form in the presence
of bank officer and the signature is duly verified.
3. A copy of identity Card is required by Bank.
4. Against submission of the Bank’s prescribed application form, duly

introduced in the manner provided and on supplying such document, as
may be required and account may be opened. The Bank reserves to itself
the right to refuse to open and account without assigning any reason.
5. Each account shall be allotted a distinct number that is to be quoted in all

correspondence with the bank relation to the account.
6. Minimum amount to open an account is required regarding the nature of

account.

Procedure to open an account
According to my practice in PCBL, when a customer wants to open an

account, the bank officer gives him an application form. All information,
which is necessary to be known by the bank, are requirements of the
application form. Form also requires the essential documents to be
attached by the customer.
Basically following information is required to open an account with PCBL

1. Title of Account
2. Full Name of Applicant
3. Occupation
4. Address
5. Telephone No.
6. Currency of account
7. Nature of Business
8. Introducer’s Name, Address & Signatures
9. Special instruction regarding the account
10. Initial Amount of the Deposit
11. Signature of the applicant
Procedure to Honour a cheque
During my internship training in the Muslim Commercial Bank Limited, I

observed and found Cheques are received for the following purposes.
i) For Cash payments

ii) For transfer (from one account to another account)
iii) For Clearing
i) For cash Payments

Cheques, which are presented on Bank counter, must be checked in the
following way:

 Date.
 Signature of Drawer.
 Signature of Payee.
 Whether Bearer has cancelled.
 Whether Payee account duly is there.
 If condition 4&5 exist then check the signatures of Drawer.
 Match the figure and wordily amount of cheque.
When all above matters are satisfied then come to the Token register and
check:
1) Token number.
2) Cheque number.
3) Amount of cheque.
4) Particulars.
Two stamps are put on cheque.

a) Cash Payment (on the face of cheque).
b) Stamp for Token (on the back of cheque).
On stamp that is put for token their details are as follows:

• Token number.
• Time of giving token to client.
• Signature of token giver.
Note:
Payment is also made when cheques of same branch account is presented for
transfer to other account in same ranch along with cheque for payment.
ii) Cheque for Transfer:

When cheques are presented to be sent for collection and drawn on bank
situated within the city then there are three stamps to be put on face as well
as on back of cheque.
a) Crossing Stamp (face).

b) Transfer Stamp (face).
c) Bank Manager Stamp (back).
Only in PCBL branches.
Cheques for clearing:

There are two stamps put on each cheque, sent for clearing:
a) Crossing Stamp.
b) Manager Stamp.
Cheques in Collection:
When cheques received in clearing are intra city then these are controlled
under CC.
First of all, these cheques are recorded in daybook then allotted number and
then serial number. Then a Performa is prepared in which Bank on whom
was drawn, cheque number, amount, beneficiary name are recorded. After
completing that Performa cheque is posted along with Performa.
Clearing
Following information is entered in clearing register.
a) Name of favoring party.

b) Name of bank on whom drawn.
c) Branch.
d) Cheque number.
e) Amount.
Clearing is sent after entering in register. In clearing register future date and
day is putted. Cheques and vouchers are then separated and Cheques are sent
for clearing.
Clearing credit vouchers are entered on clearing sheet. Such credits are
balanced by giving debits to cheques received in clearing from other
branches. At the beginning of the day clearing return sheet is received.
Vouchers are made if:
 Clearing received is more than clearing delivered then Credit voucher.

 Clearing delivered is more than clearing received then Credit voucher.

On the same day, credit vouchers sent for clearing are entered on the sheet's
credit side.
Cheques are sent to NIFT after taking them on calculator, their total amount
along with total number of instruments. A summary is prepared and sealed
after noting the number of seal in summary.
 Telephonic Transfer
 DD- Demand Draft
 PO- Payment Order
For TT, the account of beneficiary must be there in branch. DD is also

prepared and beneficiary can get payment.
First of all, purchasing party along with cheque or cash payment fills
Performa. When cheque is received it is first posted in computer section in
order to check the balance of account. After posting the bank officer calculate
tax if National Tax number is not there. i.e.
Rs.100000 @0, 1%
More than Rs.40000 @0.4%
Commission and postage charges are also calculated. These are paid in cash
or otherwise by cheque.
ISSUANCE OF CHEQUE BOOK
During my period of internship in PCBL I observed that when a account

is opened then a cheque is issued to the customer for drawing his money at
per rules. Following procedure is adopting for the issuance of cheque.
When a customer opens an account with the bank, he is provided with

cheque book for withdrawals from account. However, the first

chequebook is given to the customer only when all the required documents
are checked. A chequebook contains ten, twenty five, fifty or hundred
leaves. The cheque book also carries a requisition slip for the issuance of
the new cheque book. This slip is duly filled and singed by the customer.
The bank verifies the signature of the customer and new chequebook is
issued to the customer and serial numbers of the cheque are duly entered
in the book of the bank. Along with the signature, person should also write
his full name & address.
Usually only one cheque book is issued at a time, however big concerns
who need a number of cheque books at a time, may ask the bank to stock
as number of cheque books in their name and to point their name on these
cheque books.
Bank debits the client’s account for excise duty of Rs.2.50/- per cheque
and keeps the cheque book ready for the customer, as on his advice.
The officer keeps and maintains the cheque book register Cheque book
inventory and cheque books issued are recorded in this register. The
account number for which the cheque book is issued and the number of
leaves are also recorded in this register when the cheque book issued an
entry is passed in the cheque book issue register.
Rupee Traveller Cheques: (RTCs)
When RTCs are to be issued payment is received in cash or by cheque, tax

@0.03% is charged id National Tax number is nor available. RTCs are issued
in consecutive number of face value of
 Rs.1000
 Rs.5000

 Rs.10000
 Rs.50000
 Rs.100000
Specimen signatures of buyer are taken and clearing slip is in four pages. One
is sent to head office, one to RTC division, one for bank record and one for
client.
If client wants immediate payment of RTCs then he will bring RTCs with two
signatures, one copy of deal and ID card copy. Payment is made. RTCs can be
endorsed to other party. Once receiving party will pay the RTCs along with
credit vouchers in their relevant account with Bank. Payment will be credited
to account of paying party.
Financial Analysis
The strength of any organization in real terms can be appraised by analyzing its
balance sheets as well as its statement of accounts. The financial statement of any
organization shows the results of its operations and its position in business. The
financial statement of any organization includes:
1. The Balance Sheet
2. The Statement of Accounts
3. The Funds Flow Statement
With the help of these three items, financial analysis of an organization can be
conducted. Analysis of data helps to conclude the financial strength of the
organization.

Comparative Analysis
There is a big difference between data and information when data is arranged in
such a way that it clearly indicates some fact. The data becomes information.
Although the balance sheet and income statement gives a great idea about the
financial position of an organization but unless the data of these statements are
not compared over the years they do represent the actual position. The
comparison shows the increases, decreased and growth of an organization, which
help to predict the future potential of an organization.
The following pages show the-comparative analysis of Balance Sheet and profit
and loss accounts of Prime Bank.
FINANCIAL STATEMENTS
MCB SHARAQPUR BRANCH
BALANCE SHEET
AS ON DECEMBER 31, 2002
ASSETS 2003
Demand Deposit 14861634.17

Saving & Other Deposit 57826155.51
PLS Term Deposit 5966500

Other Accounts 182757
Sundry Creditors 110
Profit on Deposit 1244065
Bank liability as per Contra 4960000
Other liabilities 59349

Total Income 3494986.16
88595526.94
LIABILITIES
Deposits 10,366,688
Borrowings 2,231,892
Bills Payable 402,051
Other Liabilities 97,466
Deferred tax liabilities -----

16,098,097
Net Assets 1,427,578
PRESENTED BY:
Share capital 876,818
Reserve fund and Other Reserves 409,931
Unappropriated profit 93
1,286,842
Surplus on revaluation of Fixed Assets. 140,736
1,427,578
PRIME COMMERCIAL BANK OF PAKISTAN

PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED DECEMBER 31, 2002
(Rs. in 000)
PARTICULARS 2001 2002
Mark up/ return/ interest earned 1,136,900 1,394,770
Mark up/ return/ interest expensed (693,849) (948,113)
Net Mark up interest income 443,849 446,657
Provisions for non performing loans and advances (89,281) (49,185)
Provision for diminution in value of investment written of 600 (8,212)
Net mark up/ or interest income after provisions 354,370 390,260
Non mark up/interest income
Fees and commission 148,370 142,777
Dividend Income 327 646
Gain from Govt. securities 15353 19,7026
Gain from dealing in foreign currency 78,158 81,852

Other income 6,550 10,679
Total non mark up income 248,758 432,980
603,128 822,240
Non mark up/interest expenses
Administrative expenses (361,271) (512,415)
Other provisions ---------- (1,120)
Other charges (760) (2,811)
Total non mark up/interest expenses (362,031) (516,346)
Profit before tax 241,097 305,894

Taxation (88,500) (130,000)
Profit after taxation 152,597 175,987

Unappropriated profit b/d 19 93
Profit available for appropriation 152,612 175,894
Appropriations
Transfer to reserve (152,523) (175,961)
Dividend paid ___ ___
Unappropriated Profit c/d 93 26

Earning per share 1.51 1.74
PRIME COMMERCIAL BANK LIMITED

BALANCE SHEET
AS ON DECEMBER 31, 2002
HORIZONTAL ANALYSIS
Particulars 2001 2002 Change %Age

(Rs.000) (Rs.000) (Rs.000)
ASSETS
Cash 1,389,359 1,316,933 (72,426) -5%
Balance with other banks 766,587 138,557 (628,030) -82%
Investments 790,000 2,754,792 1,964,792 249%

Lending to other financial ins. 4,165,457 7,534,278 3,368,821 80%
Advances 6,239,148 9,016,138 2,776,990 45%
Fixed assets 211,520 371,951 160,431 76%
Other Assets 700,986 504,504 (196,482) -28%
Deferred Tax Assets 262,698 --- (262,698) -1%
Total 14,525,675 21,637,153 7,111,478 51%
LIABILITIES
Deposits 10,366,688 14,640,410 4,273,722 41%
Borrowing from other banks 2231892 4722117 2,490,225 112%
Bills payable 402,051 444,461 42,410 11%

Other liabilities 97,466 255,452 157,986 162%
Deferred tax liabilities --- 23,447 23447 1%
Total 13,098,097 20,055,887 6,957,790 51%
INTERPRETATION OF BALANCE SHEET

HORIZONTAL ANALYSIS
ASSETS
If we observe the assets side of the balance sheet of Prime bank we will find that
there is an increasing trend in the properties and assets of the bank from 2001 to
2002.
The first term on the assets side of balance sheet is cash. Normally all the banks
keep enough cash to meet day-to-day requirements of the client. This position of
cash in Prime bank is not satisfactory. The figures show as liabilities substantial
decrease in cash of the bank. The cash decreased 5% from 2001 to 2002.
The next item on the assets side is the balance with other banks. This item has
decreased to 82% during 2002.
The bank play a very important role in lending to financial institutions which will
grew up to 249% in 2002 as compared to previous year results.

The investments of Prime Bank also showed an overall increase of 80% from 2001
to 2002. This is also a very healthy sgn as it is increased.
The advances of Prime Bank show an overall increase of 45% from 2001 to 2002. In
2001 the growth was not quite strong but in 2002 the growth was quite strong as it
was in 2001.
The fixed assets of Prime bank also increased to 76% in 2002 while banks other
assets and deferred tax assets are still shows a decreasing trend of 28% and 1% as
compared to its previous year.
LIABILITIES
The capital always showed with the liabilities. The capital always showed with the
liabilities. The left-hand side of the balance sheet must equal the right hand side.
The first item on liabilities side is the deposits and other accounts of the customer.
The deposits have shown increasing trend. The deposits increased by 41% from
2001 to 2002. Hence this is a good sing.
Another item is borrowing from other banking companies. The over all increase in
this item from 2001 to 2002 us 122%. This increase in liability is hooting beneficial
for the bank and now it should be reduced and minimized.
The next item on the liability side of the balance sheet is bills payable, from 2001 to
2002 the bills payable increased by 11% which shows not health, sign for the bank.
The over all liabilities also increased by 116% 2001-02.
PRIME COMMERECIAL BANK LIMITED

AS AT DECEMBER 31st 2002
HORIZONTAL ANALYSIS
(Amount in 000’s)
INCOME 2001 2002 Change %
Mark-Up Earned (Net) 443051 446657 3606 0.81%

Fees & commission 148370 122777 -5593 -5.15%
Dividend Income 327 646 319 98%
Total 591748 590080 -1668 -0.28%
EXPENSES
Salaries, allowances etc. 1548254 217218 58964 37.26%

Contribution to defined contr. P 6481 8864 2383 36.77%
Non- Executed Directors Fees 2379 2442 63 2.65%
Rent, tax insurance & etc. 73511 106822 33311 45.3%
Legal and professional charges 5665 15487 9822 174.0%
Communications 9860 10510 650 6.60%
Repairs & maintenance 11592 13916 2324 20.04%
Finance charges on leased assets 240 - -240 -1%
Stationary & printing 14123 20303 6180 43.76%
Advertisement & publicity 20050 10042 -2008 -16.66%
Auditors remunerations 447 1770 1323 296%
Depreciation 29300 42177 12877 44%
Amortization 4761 13230 8469 178%
Travel & motor vehicle expense 24985 32909 7924 31.72%
Other Expenditures 7611 16725 9114 120%
Total 361271 512415 151144 41.84%
INTERPRTATION OF PROFIT AND LOSS A/C.

HORIZONTAL ANALYSIS
INCOME
On the income side of the profit and loss account the first item is the markup
earned. This means the income that the bank receives as interest on various
advances. There was 0.81% increase in this item during 2001-2002. There is
a increasing trend in the interest income. This is a very important source of
income for the bank and its growth gives a positive sigh fit.
The second item on the income side is the commission and brokerage, which
the bank received by offering various services to its clients. The income is

also known the non-fund-based revenue. It is also a very important source of
income for a bank. The figures reveal that the commission decreased by
5015% from 2001 to 2002.
Expenditure
The expense item shows salaries, allowances etc that shows the change in
37.26% as far as the bank expand its business, obviously these expenses also
increases. Next item on this side is overall increase in administrative
expenditures. The rent. Taxes and insurance increased by 45.3%in 2001-
2002, which is not a good sigh for the bank. Expenditure on repair &
maintenance, stationary and printing also increased. The auditor’s fee has
increased. However the overall position is not improving as the expenditures
are increasing at an increasing rate.

BALANCE SHEET
AS AT DECEMBER 31, 2002
Vertical analysis
2001 % 2002 %
(Rs.000) (Rs.000)
ASSETS
Cash 1,389,359 9.56 1,316,933 6.08
Bank Balance 766,587 5.27 138,557 0.64
Lending to financial ins. 790,000 5.44 2,754,792 12.73
Investments 4,165,457 28.68 7,534,278 34.82
Advances 6,239,148 43 9,016,138 41.67
Fixed assets 211,520 1.46 371,951 1.72
Other assets 700,986 4.86 504,504 2.33
Deferred Tax Assets 262,698 1.81

Total Assets 14,525,675 100 21,637,153 100
LIABILITIES
Deposits 10,366,688 79.12 14,640,410 73
Bank Borrowings 2,231,892 17.04 4,722,117 24
Bills payable 402,051 3.07 444,461 2.22
Other liabilities 97,466 .744 255,452 1.27
Deferred Tax Liabilities 23,447 0.12
Total Liabilities 13,098,097 100 20,055,887 100
Interpretation of Balance Sheet

VERTICAL ANALYSIS
ASSETS
Cash in hand comprises 9.26% of total assets in 2001 and this composition is to be
6.08% in 2002. This shows that the liquidity has increased. Balance with other
banks was 5.28% of the total assets in 2001 and goes to 0.64% in 2002. This trend
was due to increasing liquidity approach of the bank. Investments were 24% of the
total assets in 2001 and increases to 34.82% of total assets in 2002.Lending to
financial institutions was 5.44% in 2001 then rose up to 12.73% of total assets 2002.
Total liquid assets were 40.95% of the total assets in 2001, and 42% in 2001.The
proportion of advances to total assets in 2001 is 43%, and in 2001 it is 41.68%.
Financing constitutes a major portion of total assets. Other securities (net) were
0.36% of total assets in 1998, 1% in 1999, 3% in 2000 and 8% in 2001. The %age of
other securities to total assets has increased tremendously in2001. Operating fixed
assets are 2.15% of total assts in 1998, 1.8%in 1999, 1.46% in 2001. The proportion
of operating fixed assets has remained more or less constant throughout the years

and it was 1.72% in 2002.Other assets also follow the same trend in their proportion
to total assets in these four years. It remained approximately 7% of the total assets.
LIABLITIES
On the liability side the total deposits comprise 78% of the total assets in 1998,
73%in 1999, 76%ub 2000 and 71% in 2001. This shows that more than 70% of the
assets have been financed by the demand and time deposits of the bank. Borrowings
were 10%, 14%, 11% and 15% in the years 1998, 1999, 2000 and 2001.Bills payable
comprise a very small proportion of total assets. Approximately the proportion
remained 2.5% in all the years. This shows that the liability of the bank towards
people other than it depositors is less. Other liabilities also comprise a very minor
portion of the total assets. The proportion of total liabilities to total assets is round
about 90% in all the four years. It decreases a little in 2000 because of uncertain
conditions as a result of which the owner’s money proportion had to be increased.
Shareholder equity shows a constant proportion to total assets in all the four years.
It increased a little in 2002.

LIMITED
AS AT DECEMBER 31,2002
VERTICAL ANALYSIS
INCOME 2001 % 2002 %

Mark-Up Earned (Net) 443051 74.87 446657 75.69
Fees And Commission 148370 25.07 142777 24.20
Dividend Income 327 0.05 646 0.11
Total 591748 100 590080 100
OPERATINGEXPENSES
Salaries, allowances, etc. 158254 43.80 217218 42.39

Contribution to defined contr. P 6481 1.79 8864 1.72
Non-Expected Directors Fees 2379 0.66 2442 0.48
Rent, tax, insurance, & etc. 73511 20.35 106822 20.85
Legal and professional charges 5665 1.57 15487 3.02
Communications 9860 2.73 10510 2.05
Repaires & Maintenance 11592 3.21 13916 2.72
Finance charges on leased assets 240 0.07 -- --
Stationary and Printing 14123 3.91 20303 3.96
Advertising and Publicity 12050 3.34 10042 1.96
Auditors remunerations 447 0.12 1770 0.35
Depreciation 29300 8.11 42177 8.23
Amortization 4761 1.32 13230 2.58
Travel and motor vehicle expense 24985 6.92 32909 6.42
Other Expenditures 7611 2.11 16725 3.26
Total 361271 100 512415 100
Interpretation of Profit & Loss account

Vertical analysis
In the vertical analysis of profit and loss account each time on income side is shown
as a percentage of total income and each item of expenditure as a percentage of total
expenditure.
The interest income as a percentage of total income is slightly increased by 74.87%

to 75.69% during 2001-02, however the commission and brokerage income shown
decreasing trend. The other items on the come side are slightly fluctuating as a
percentage of totals.

As we see in the vertical analysis of profit and loss statement of PCBL we come to
know that the bank currently operation are going to be expanded and for that
purpose their expenses also increased. But these all shows every slightly difference
in all those expenses such as salaries, contribution to provident fund, non executed
fees of directors, legal and professional charges, stationary and printing etc. as
compared to previous year.
Ratio Analysis
Ratio analysis helps us in determining a logical relationship between different heads

of income statement and balance sheet. This logical relationship is helpful in making
various useful interpretations about the financial position of the bank, liquidity of
the bank and most of all the profitability of its operations. Following ratios have
been calculated:
1. Working capital
Working capital = Current Assets- Current Liabilities

(Amount in 000’s)
2001 2002
Current Assets 2155946 1455490
Current Liabilities 402051 444461
Working Capital 1752895 1011029
Comments
The working capital of the bank has decreased in 2002. Actually working
capital is the liquidity of capital available to the organization from which it conducts
its business. In2002 working capital decreased because of many anticipated reasons.
2. Loan to Deposits
Loan to Deposit Ratio= Total Loans/Total Deposit
(Amounts in ooo’s)
2001 2002
Total Loans 4347890 4722117
Total Deposits 10366688 14640410
Ratio 42% 32.25%
Comment
According to the prudential regulations of the state bank of Pakistan every bank
has to maintain the liquidity of 45% with the state bank. If it is subtracted from
the total deposits then only 55% of the total deposits are left with the bank to
advance to the borrowers. The bank has favorable loans to deposit ratio.
3. Cash Deposits
Cash Deposit=Cash/Deposit
(Amounts in 000’s)
2001 2002
Cash 1389359 1316933
Deposits 10366688 14640410
Ratio 13% 9%
Comment
This ratio helps to ascertain as to what %age of total deposits are kept as cash.
This ratio shows that 13% of the total deposits were kept as cash in 2001 to meet
the day-to-day requirements of the bank. In 2002 there is a decrease in this ratio
and is not up to the optimum level of the bank.
4. Liquid Assets to Total Assets

Liquid Asset to Total Asset=Liquid Assets/Total Assets
(Amount in 000’s)
2001 2002
Liquid Assets 2155946 1455490
Total Assets 14525675 21637153
Ratio 14.84% 6.72%
1. Return on Assets
Return on Asset= Net Income/Total Assets
(Amounts in 000’s)
2001 2002
Net Income 152616 175978
Total Assets 14525675 21637153
Ratio 1.05% 0.81%
Comments
This ratio shows that how much an organization is earning on its assets after
meeting
all the obligations and expenses. Ratio shows comparatively less return on assets.
Stock Exchange Analysis

Of Prime Commercial Bank share
Prime Commercial Bank is a banking company quoted in the stock exchange;
therefore, it is important to analyze the behavior and trend of its share in the stock
market to get a vast picture.
The stock exchange analysis reveals the strength of the share and the confidence of
the investors in the operations of the company. If the share prices are appreciating
then they show a healthy sign, but this appreciation in price should be accompanied
with increased turnover, increased market capitalization and increased trading
value.
In order to make an analysis the following figures have been obtained from the
bank’s stock exchange trend.

a) Average Share Price
b) Market Capitalization
c) Turnover
d) Price Earning Ratio
Earning Per Share
It shows the amount earned per share by the shareholder. The earning per share
was Rs:0. 63 from January to mid of May, and it increased to Rs: 1.74 in the
following months. It is calculated as;
EPS= Net Profit/No. Of Outstanding Shares
Average Share Price

Prime Commercial Bank’s share had an average price of Rs.4.91 in January.
This price followed a gradual increasing trend from January to April. After that
the average price of the share experienced a major downward fluctuation in
August. The reason was the unstable and uncertain conditions due to the coming
elections in the country. People were not investing in the overall stock exchange
market, because they did not want to block their investments before the
emergence of a clear picture.
After August the average share price remained around Rs.5.85 in September but
started to appreciate in October and November. The increase in share price
during the month of October was observed in the second half of the month due
to an overall upward trend in the stock exchange. This upward trend was
basically a result of investment made by institutions.

Aerage Share Price 2002
9
8
7
Avg. Share Price
6
5
4
3
2
1
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Months
Price Earning Ratio
Price earning ratio of Prime Bank’s share is declining during the initial 4 months of the
year but after that it started rising and reached a maximum of Rs.0.30 in September and
again declined a little in October and November. Price earning ratio is calculated as
Price Earning Ratio= Market Price Per Share/Earning Per Share
It shows that how much time will be needed to cover the market price. Price earning
ratio of Prime Bank has increased during May to September. An increase in the
price earning ratio indicates that the investor has the confidence in the bank’s
growth and income. The factors determining the price-earning ratio are:
 Share price Performance
 General Economic Performance
 Stock Exchange Trend

Price Earning Ratio
0.35
0.3
0.25
P.E ratio
0.2
0.15
0.1
0.05
0
Months
Turnover
Total turnover indicates the total business carried out of a specific share. The trend
in turnover of Prime Bank’s share is highly fluctuating. It is more or less stable
during the first four months but after that it followed a decline from May to
September. The turnover was the lowest during September and it was due to the
fact that the price of the share was also declining and there was a selling pressure.

Turnover
40000
35000
30000
25000
turnover
20000
15000
10000
5000
0
Months
The reason for the downward trend was an overall depression in the economy as
well as the stock exchange. Since Prime Bank’s share is not a blue chip therefore it
follows the trend established by other blue chips.
MARKET CAPITALIZATION
Market Capitalization = Market value * Paid up capital
It is affected by the share’s market value. Greater the marker value more will be
market capitalization of the shares and vice versa.
Market capitalization is an indicator of the increase or decrease in the share price

and also the total business of the share. The paid-up capital was increased from
Rs.878, 818,000 to Rs.1,008,340,000.
Prime Bank’s share usually is affected by stock exchange fluctuations due to a

smaller share in the stock exchange therefore the total trading can be increased by
floating more shares in the market.

Market Captilization
900000000
800000000
Market capaitalization
700000000
600000000
500000000
400000000
300000000
200000000
100000000
0
Months
INTERNATIONAL BRANCH NETWORK
No branches of {rime Bank are in any other countries. So the bank has to incur
additional cost for correspondent banking.
SWOT ANALYSIS
STRENGTHS

• Bin Mahfooz Group
The bank is owned by BIN MAHFOOZ group of Saudi Arabia, therefore people
have trust and confidence in banks operating profitability.
• Customer Oriented
The bank provides high status services in every field, whether consumer banking,
commercial banking or private banking.
• Online transfers
It is a recently achieved strength. Almost 8 branches are on line and more branches
are to be made online very soon.
• Location
All the Prime Bank branch locations are in commercial areas.
• Highest Rates on Deposit

Prime Bank has the highest rate of returns on different categories of deposits.
• Strict Advances Policy

One of the more strengths of Prime Bank is that very less amounts of debts turn
doubtful or bad due to their conservative policy.
• Branch Network
Large number of branches have been opened and still more branches are under the
expansion plan.
WEAKNESSES

• Branch Layout
Some of the branches do no have an impressive lay out.
• No Advertisement
Prime Bank hoes not make any advertisement ore promotion of its products.
• International Branch Network

No branches of Prime Bank are in any other countries. So the bank has to incur
additional cost for correspondent banking.
SWOT ANALYSIS
STRENGTH
Weakness Threats Opportunities
S
Branch Network
Bin Mahoofz group
Customer oriented Marketing
E- Banking New products and
Online transactions
• Location Branch layout
Products services schemes
• Highest rate on No Advertisement Instability
deposits International branch
• Strict advancing network
policy
• Branch network
THREATS
• E-Banking

Many banks are providing e banking to their customers, which is a threat for the
bank.
• Products And Services
A wider range of products and services is being provide by the competitors e.g.
ATM, traveler’s cheque, master cards etc.
• Instability
The recession experienced by the economy has overall affected the banking
industry.
OPPORTUNITIES
• Branch Network
Due to lenient licensing policy by SBP Prime Bank has more opportunities to open
new branches.
• Marketing
More market share and customers can be gained by effective marketing strategies.
• New Products and Schemes
New customer friendly products can be introduced.
• Car Financing
PCBL can also introduce car financing to enhance it business
RECOMMENDATIONS
On the basis of SWOT analysis we see that the Bank’s strengths are more than
its weaknesses but still there is room for a lot of improvement and innovation.

I hope that these humble suggestions for Prime Commercial Bank Ltd. may be
appreciated. These are as follows:
 Before sanctioning and issuing and issuing any loans to the borrowers, the
credit worthiness of the client be assured seeing that they’re past dealing
with other banks in the area. This would certainly help in deducing risk of
default.
 The customers who have continuous interaction with the bank and have
sound deposits in their accounts should be given value and due importance.
This would greatly help in saving the time of both the bank and the
customer.
 The overall services should be improved to a grater extent and the customers
are accommodated in a courteous and friendly manner.
 The bank should sanction only small amounts as loans so that it may be easy
for the bank’s officials to collect cash at the end of the year.
 A proper current and saving account balance should be kept every time to
increase the deposits with the bank for a longer period of time.
 Proper securities should be obtained as guarantees to secure loan in favor of
bank.
 All the branches should be equipped with modern facilities like tax
consultancy, interest and computers.
 A qualified and skilled staff should be introduced and strategies should be
developed to divert to quality banking rather than quantity. The branches
having continuous insufficient cash balances should be closed.
 PCBL should give proper attention on staff training and should provide the
facility not only in Pakistan but also in abroad. Every year some of the
employees should be sent for training to other countries.
 In order to improve the image of bank and create public awareness, bank
should establish separate Marketing department.
 The employees should be provided the opportunities to attend and
participate in seminars and lectures on banking.

 There should be separate counter with well-mannered trained employees for
providing guidance and every kind of information to customers.
 Proper remedies for delays or dishonor of cheque is passed at proper time in
order to make good reputation in the eyes of the customers.
 Customer should be facilitated at the time of payment of utility bills to avoid
rush and mismanagement.
 Online banking system should be started in all the branches.
 Automatic Teller Machine should be replaced at various areas in large cities,
especially in commercial areas near big markets.
 A car financing scheme should be approved that will be more profitable for
PPCBL. Almost all the competitors of Prime Bank are offering such schemes.
 The management should work free from political pressure.
 A plan should be developed to employ professionally qualified new blood,
relating to finance and marketing, their recruitment should be strictly on the
basis of merit and induction should be confirmed after proper training.
 The employees should also be given due importance. Every year special
prizes and incentives must be given to extraordinary workers to motivate
them.

Annexure

Mission/ Vision Statement: Business Phillosophy

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Mission/ vision statement

“STRONGER BANKING RELATIONSHIPS, INCREASING CUSTOMER

Prime Bank is a prominent Pakistani bank, providing

The bank is committed to being a sophisticated, prominent and

Hailey College of Commerce 5

ANALYSIS OF MISSION, VISION AND

PURPOSE AND VALUES

Hailey College of Commerce 6

PRODUCTS AND SERVICES

Providing superior service, innovation, specialized products and professional

Hailey College of Commerce 7

CONCERN FOR SUVIVAL, GROWTH AND

CONCRN FOR PUBLIC IMAGE

CONCERN FOR EMPLOYEES

Hailey College of Commerce 8

Availing this opportunity, a group of Pakistani professionals with extensive

Prime bank is the vision of a group of Pakistani professionals with extensive

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• To make the bank customer focused

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FACTS AND FIGURES

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Profit After Tax

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Banking Sector in Pakistan

PUBLIC, PPRIVATE AND FOREIGN BANKS

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Head of Risk Management Mr. Khalid Imran

Commercial Banking Group & Mr. Amanullah Khan

International Banking & Treasury Mr. S.M. Azam Zaidi

Exective Vice President

Chief Financial Officer Mr. Hamid Imtiaz

Audit Mr. M. Shafiq Naeeem

Mr. Moghis Bokhari

Credit Administration Mr. M Usman

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Compliance Mr. Gul M.Khan

Legal & Corporate Affairs Ms. Shaheen Ali

Systems & IT Syed Hassan Rizvi

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Peons and Guards

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EMPLOYEE NUMBER AND DESIGNATION

• Cash and deposits

There are 6 employees in the cash and deposits department, 2 in accounts, 1 in

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“Under Promise and Over Deliver”

Prime Commercial Bank provides a winning combination of products and services

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TIERS PROVISIONSL RATES

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TIERS PROVISIONSL RATES

It is a specialized term deposit scheme introduced by Prime Commercial bank.

TIERS 3MONTHS 6MONTHS