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 Internship Report on

Kashf Micro-finance Bank Limited

Tayyaba Kanwal

University Of Gujrat

April 2010

Department of Management Sciences

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 Kashf Micro-finance Bank Limited

Internship report submitted to the department of the administrative sciences

in partial

Fulfillment

Of the requirement for the degree of Masters of Business Administration.

April 2010

Faculty of Management and Administrative Sciences

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 APPROVAL SHEET

Faculty of Management and Administrative Sciences

University of Gujrat, HH-Campus

INTERNSHIP REPORT ON

Kashf Micro-finance Bank

Faisal Gate Branch, Gujrat

SUPERVISED BY:

Signature:

Name:

Designation:

Chairman :

Signature:

Name:

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Letter From the Organization:

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 ACKNOWLEDGEMENTS

All praises for Almighty Allah whose uniqueness, Oneness and wholeness is not
challengeable. It is due to HIS unending mercy that this work moved towards
success. All respect for his Holy Prophet Hazrat Muhammad (P.B.U.H) who
enabled us to recognize our creator.

I am very much obliged to my ever caring and loving parents whose prayers have
enabled to reach this stage.

I would like to thank to my lovely sister and brother for always being there for me
when I need them.

I am highly indebted to my instructor Mr. Adnan Bashir for providing me an

opportunity to learn about the Banking system of “" which is vital ingredient of
MBA program. I am very great full to Mr. Khalil Tahir (CSO of KMBL) for
helping me to complete this report. I feel great pride and pleasure on the
accomplishment of this report.

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Executive summary:

Pakistan after getting its independence, did not inherit a strong banking industry
and since then saw a number of events in the industry, like the nationalization of
banks in the 1970’s. However today, the banking industry of Pakistan has been
growing over the past few years, mainly because of the consistent policies
implemented by the Government of Pakistan, including the privatization of banks
in Pakistan. Also the State Bank of Pakistan’s, monetary policy has been very
friendly toward the banking industry. There are a number of different banks
established in Pakistan, including local incorporated commercial banks, foreign
incorporated commercial banks, development financial institutions, investment
banks, housing finance companies, micro finance banks and Islamic banks. Kashf
Micro-finance Bank Limited (FBL) started its operations in as a local bank of
Pakistan. The company is committed to its clients' best interests as well as
preserving a good relationship by defining realistic objectives. Kashf Bank is
continuously innovating, delivery creative and high-quality solutions which fit
best its clients’ needs. It maintains a high ethical standards and unconditional
compliance with regulations and laws. It values its integrity and actively
promotes the “know your customer” policy amongst Kashf employees to ensure
that the company is not involved in any money laundry operation. Hiring and
retaining the best people while respecting diversity, encouraging self
improvement, recognizing and rewarding merit are the key values of Kashf Bank.

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Table of Contents
Chapter one:...............................................................................................................2
1.1.Introduction of internship report:......................................................................2
1.2.Background of study:..........................................................................................3
1.4. Scope:...................................................................................................................4
1.5.Objectives of Practical Training:........................................................................4
1.6. Methodology:..................................................................................................6
Summary:...................................................................................................................7
Chapter 2: Organization...........................................................................................8
2.1. Introduction of the Organization:......................................................................8
2.2. Products:..............................................................................................................8
2.4. Overall respective sector in Pakistan:.............................................................13
2.5. Role of organization in Pakistan:.....................................................................13
2.6. Overall organization and functions of organization in Pakistan:..................14
2.7. Organization office in which you are working:..............................................15
3.1. Introduction:.....................................................................................................17
3.6. Number of departments:..................................................................................21
3.7. Offices or field offices:......................................................................................25
3.7.2. Branches:........................................................................................................26
3.8. Current Staff according to designation and grade:........................................29
3.9. Current staff of branch according to qualification and experience:.............30
3.10. Training received by number of employees:.................................................32
3.11. Workload (it is based on number of hours worked).....................................32
3.13. Promotion system:..........................................................................................34
3.14. Incentives & motivation:................................................................................34
3.17. Responsibilities / duties performed................................................................36
3.18. Critical analysis of branch:............................................................................38
3.19. Communication system:.................................................................................38

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3.20. Hiring system:.................................................................................................39
3.21. Morale of staff:................................................................................................39
3.23. Performances:.................................................................................................40
3.23.1. In terms of quality (through customer satisfaction)..................................40
3.24. Latest budget review:......................................................................................40
3.25. Summary:........................................................................................................40
Chapter 5:.................................................................................................................48
5.1. Half page introduction:....................................................................................48
5.2. Policies:..............................................................................................................48
5.3. Strategies /functions (in that branch):.............................................................48
5.3.1. Short-term Strategies/functions:...................................................................49
5.3.2. Long-term Strategies/functions:...................................................................49
5.3.2.1. Five Years Plan:..........................................................................................49
No of saving Clients.................................................................................................49
5.3.2.2. Explanation:................................................................................................50
5.4. Successes (it will be based on the impact of the strategies):...........................50
5.5. Summary:..........................................................................................................51
Chapter 6: Organization Analysis..........................................................................52
Introduction:............................................................................................................52
6.1. SWOT analysis:.................................................................................................52
6.1.1. Strengths:........................................................................................................52
6.1.2. Weaknesses:....................................................................................................53
6.1.3. Opportunities.................................................................................................53
6.1.4. Threats:...........................................................................................................54
6.2. Pest Analysis:....................................................................................................54
6.2.1. Societal Environment:...................................................................................54
6.2.2. Economic:.......................................................................................................54
6.2.3. Technological Developments:........................................................................54
6.2.4. Socio cultural:................................................................................................55
6.2.5. Political-legal..................................................................................................55
6.2.6. Task Environment (Industry).......................................................................55
6.3. Porter Model:....................................................................................................55

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6.3.1. Threat of new entrants:.................................................................................56
6.3.2. Bargaining power:..........................................................................................56
6.3.3. Threat of Substitute products or Service:....................................................56
6.3.4. Bargaining power of suppliers:.....................................................................56
6.3.5. Ratio Analysis:...............................................................................................57
6.4. Summary:.....................................................................................................57
Chapter 7:.................................................................................................................57
Recommendations with their feasibility (economic, political, financial etc)........57
Conclusion:...............................................................................................................58

References: ..…………………………………………………………………………………………………Page
Appendices:.........................................................................................................Page
List of Tables:......................................................................................................Page
List of abbreviations:..........................................................................................Page

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References:

www.kmfbank.com

http://www.google.com.pk/#hl=en&q=annual+ratio+anaylysis+of+kashf+micro+f
inance+bank+ltd+for+the+year+ended+2009&meta=&aq=f&aqi=&aql=&oq=&g
s_rfai=&fp=982714dd5b6c0abf

http://www.google.com.pk/#hl=en&source=hp&q=what+is+the+overall+respecti
ve+sector+of+kashf+micro-
finance+bank+ltd+in+pakistan&btnG=Google+Search&meta=&aq=f&aqi=&aql=
&oq=&gs_rfai=&fp=982714dd5b6c0abf

internship report of FAYSAL Bank Ltd from www.Scribd.com

personal knowledge

observations

formal and informal discussion with employees

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Appendices:

 Account opening form

 Letter from the organization
 Brushers

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List of Tables:

Table 3.7.2.1: Branches of KMBL

Table 3.8: Current Staff according to designation and grade

Table 3.9: Current staff of branch according to qualification and experience

Table 3.10: Training received by number of employees

Table 3.10.1: Table – Trainings

Table 3.12: Salary structure:

Table 3.17: Responsibilities / duties performed

Table 5.3.2.1: Five Years Plan

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 List of abbreviations:
KMBL: Kashf Micro-finance Bank Limited
MCR: Minimum Capital Requirement
SBP: State Bank of Pakistan
LO: Loan Officer
CO: Customer Officer
BM: Branch Manger
NIFT: National Institutional Facilitation Technology
ATM: Automatic Teller Machine

SWOT: Strengths, Weakness, Opportunities, Threats

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