HAILEY COLLEGE OF BANKING AND FINANCE

UNIVERSITY OF THE PUNJAB

LAHORE.

DEPARTMENT OF BUSINESS ADMINISTRATION

SUBJECT:

BANKING AND FINANCE

SUBMITTED TO:

PROF. Riaz Ahmed Mian

GROUP MEMBERS:

Arslan Khalid 076

Abdullah Kashif 143

Shahroz Kafeel 111

 Contents of Table:
 Introduction/Infrastructure
 Initiator’s/Board Members
 History
 Sector
 Products
 Facilities Provided:
Debit Card’s
Credit Card’s
Loan’s
leasing. Etc
 Analysis:
Financial State
Earning Per Share
Total Deposit’s
Total Advance’s
Profit Earning After Tax
Profit Earning Before Tax
Per Share Rate in Stock Exchange
 SWOT Analysis:
Environmental Conditions
Strength
Weakness
Opportunities
Competitor’s Facing
 PEST Analysis:
Political Environment
Economy Environment
Social Environment
Technical
 Crux
 Recommendation’s
Acknowledgment
 Brief Details:

Type Public

Industry Banking, Insurance

Founded By Tajammal Hussain

Founded In 1989

Headquarter Lahore, Pakistan

Products Financial Services

Assets Valuation PKR 714 Billion (2018)

Liabilities Valuation PKR 676 Billion (2018)

Share Capital PKR 260 Million (2018)

Net Investments PKR 210 Billion (2018)

Operating Income (After Tax) PKR 750 Million (2018)

Total Deposits PKR 595 Billion (2018)

Net Advances PKR 290 Billion (2017)

Introduction/Infrastructure:

The Bank of Punjab is a Pakistani bank which is based in Lahore, Pakistan.. It

provides us a large and wide range of Banking Services and Products. The First
Modaraba Punjab (FPM), it is wholly-owned subsidiary of the bank, was
established in 1992 and is being managed by Punjab Modaraba Service (Pvt)
Ltd. One of the prominent Financial Institute in the country Holding AA rating’s
from PARCA. The type of bank is Public, belonging to the industrial service of
Banking and Insurance. Bank also had 536 online branches in different 301
cities of the country. Bank gives exceptional Services to its customer.

History:
The bank is founded by the Tajammal Hussain in 1989. The commercial bank
programmed had a network of more than 550 branches in the main centers of
the country. Bank of Punjab is the Seventh largest commercial bank in the all
over list of scheduled commercial banks of the country.

First Modaraba Punjab:

It was established in 1992 July, 14 under the Modaraba companies ordinance

1980. Rules of FMP was framed and quoted at the Pakistan Stock Exchange. It
is a multi dimensional and perpetual system initially was engaged in the
business of Musharikah Financing, Ijrah Financing and other relating business
to the Islam. According to the requirement different operations are held by
their departments with available resources and experienced staff in respective
field. FMP is headed towards the High growth through the capitalizing to the
consumer, Small Business and Corporate Sector by providing different facilities
to them. Currently FMP is operating in the Lahore with a consistent
management team and qualified staff with divers and extensive experience in
respective field.
Awards and Achievements:

Bank of Punjab has many awards and achievements. The effective strategic
plans give the bank way to achieve the goals. Following are the awards given to
the bank of Punjab.

 Excellence Award:
The bank has been awarded by the Central Board of Revenue (CBR) an
Excellence Award due to making the contribution in the Government
Exchequer.
 3rd Kissan Time Award:
Under the 3rd time Kissan award, 2006 the bank has been awarded due
to making his part in the Development and Growth of Agricultural
Sector. The bank had been honored with two awards “Top Bank for
Agriculture Loans” and “Best Bank Crop Insurance”.
 Best Corporate Report Award:
The Institute of Chartered Accountants of Pakistan and the Institute of
Cost and Management Accountants of Pakistan jointly has been
examined the Annual Repot of the Bank of Punjab in, 2005 and won the
5th position for “The Best Corporate Report Award”.
 Achievement Award:
The bank has been awarded in, 2006 “LCCI Achievement Award” by the
Lahore Chamber of Commerce & Industry (LCCI).

Initiators/ Board Members:

Dr. Pervez is the chairman of the Bank along with the Mr. Khalid as the
President of the bank. Bank also has 5 Directors and the Secretary to the Board
is Mr. Raza.
The Chairman:

Dr. Pervez Tahir is the Chairmen of the bank. Dr. Pervez is a Senior Economist
also distinguished professional writer and Speaker. In the Government of
Pakistan he has had a Great Career. Dr. Pervez Academic background includes
PhD in Economics and M.Phil in Development Studies from the University of
Cambridge.

The President:

Mr. Khalid Siddiq Tirmizey is the President of the bank. He was appointed in
December 7, 2018. Mr. Khalid academic background includes MBA from IBA
Karachi and Master in Economics from University of Punjab.

Directors:
The bank has 5 Directors Named as Follow:

 Mr. M. Jehanzeb Khan

He is presently Director of the Bank of Punjab. The academic
background includes MBA (Public Service) from Birmingham, UK
and MBBS from University of Peshawar.
 Mr. Hamed Yaqoob Sheikh
He is presently Director of Bank of Punjab. The academic
background includes MBA from IBA Karachi in 1989 and
Development Studies from School of Oriental & African Studies,
University of Landon.
 Mr. M Amjad Saqib
He is presently Director of the Bank of Punjab. He is a founding
Chairman and Executive Director of Interest free Microfinance-
“Akhuwat”. M Amjad was graduated in 1985 from King Edward
Medical College. He is Awarded “ Life Time Achievement
 Award,2014” by Abu Dhabi Islamic Bank(ADIB).He has also been
Awarded by President of Pakistan “Sitara-E-Imtiaz” in 2010 .
 Mr. Saeed Anwar
He is presently Director of the Bank of Punjab. He started career
as an Officer in UBL, 1967.The academic background includes B.Sc
(Hons) in Chemical engineering and M.Sc Chemical Technology
from Punjab University, Lahore.
 Khawaja Farooq Saeed
He is presently Director of the Bank of Punjab. His academic
background includes M.A and LL.B from Punjab University. His
past career was retired Justice of Lahore High Court.

Sector:
Bank of Punjab is a Semi-Government bank. The bank is formed for the public
services. Many of facilities and Services are provided to the customer on the
basis of the Financial Instruments. Bank also facilitates the Agriculture Sector
of the country. Bank also plays a key role in the mobilization of the local
resources, promoting savings, funds and investments. Bank gave attractive and
reliable Profit rates on the Deposits. Bank also handles the Foreign Exchange
and Foreign Businesses in the country. Bank also Focus on the agenda of
improving the marketing sector in the country also in all facets of the
operations. Bank also takes the management part by all possible measures
including legal battles or operations in the courts (within the country or
abroad). Bank is also supporting the government in the poverty process to
reduce it by providing different funds and privileges to uplift the segment of
societies and colonies. Bank also has career development programs designed
to meet the challenges face by their employees in the workplace.
 Products:
Bank of Punjab has many products as bank is dealing in the financial services.
Bank of Punjab provides variety of Financial Services and products in the
country like Retail Banking, Retail Financing, Agriculture, Wholesale Banking,
Deposits, Loans and leasing etc. Bank of Punjab also facilitate in the services
rather than the consumer type like Small and Medium Enterprise, Running
Finance, Cash Finance, Demand Financing, SMS Banking, Utility Bill Payment
System, Inter Bank Fund Transfer System, Cash Management Payment System,
Lease Finance, Lending Finance, Riba Free Certificates, Taqwa Assan Account
(both Savings and Current), Murabahah, Ijarah, Istisna and Letter of Credit etc.
Bank also avails the Kidmat Card scheme for Poor’s or Low Income Persons.
Commonly the facilities are provided by the bank are mentioned as follows.

 Bank Deposits
 Debit Cards
 Credit Cards
 Loans
 Leasing

These are the commonly used terms in daily routine of the banking process.
Bank of Punjab provides the best quality of terms to its customers and
maintains a great goodwill with them. As the mission statement tells us about
holding a great relationship with the stakeholder and the government of the
Pakistan. The core value tells us about the customer priority with excellence
performance with the help of corporate social responsibilities by focusing the
profitability ratio and customer respect. Bank achieves his targets by
excellence performance given to his consumers with good creditability.
 SWOT Analysis:

SWOT analysis is a word that stands for strength, weakness, opportunities, and
treats. SWOT analysis is detailed evaluation of firm or organization in internal
strength and weakness but also its environmental threats and opportunities.

“SWOT analysis is a complication that includes strength, opportunities,

weaknesses and threats that may affect organizational presentations.”

“The overall assessment of a firm or company strength, weakness,

opportunities, threats is known as SWOT analysis”

In SWOT analysis the best way to complete an organization’s goals by :

 The utilization an organization’s strength and opportunities.

 To modify its threats.
 To get off or rectify its weaknesses

SWOT examination is one of the most essential strides in formulating

methodology utilizing the organization mission as a context; managers
evaluate internal strengths some abilities & weaknesses and possibilities &
threats. The objective is to create a good planning and utilizing the strength
and opportunities, also change the threats and get away weaknesses.

Here, now we briefly discuss the strengths, weaknesses and opportunities,

threats and also discuss the Environmental analysis after the discussion of the
SWOT.

 Strengths:
 Firstly it is supported by the Punjab Government and also funded by the
Government, it is growing people believes.
 Bank of Punjab signed an MOU with the Punjab Government to give the
facility related to SME financing to the engineering organization of
Punjab Government for controlling the power systems.
 The Bank of Punjab has create a value in among top six banks of
Pakistan, in the purpose of banking business as compare the other
province banks.
 BOP has a huge credit rating as compare to the other province banks,
because bank of Punjab providing economic role in innovative financial
services.
 BOP is doing very well in level of performance through customers
focused policy to maximum value and fulfillment as compare to others
province bank.
 Wide scope of consumer financing and agricultural loan scheme as
contrast of other related banks.
 The bank of Punjab is in strength that is manage the Chief Minister own
employment program for unemployed youth.
 The BOP is in strength because its have more Government Deposits as
compare to the other banks
 The BOP has large network of branches in commercial areas distant area
to meet the customers desired.
 The BOP is following roles and regulation actively which is imposed by
the Punjab Government, so it makes the environment in discipline.
 BOP has a good strength due to its name “Punjab” so the most of
people prefer to deposit money in this bank.
 The BOP has a strength because it is more reliable than the others bank,
uses friendly computer programs for their customers.
 BOP has a huge financial strength as compare to other province bank.
 Not excellent but better facilities are provided to employees.
  Weaknesses:
 The level of bad debts is increasing at higher level.
 Poor results of all employees because most of employee did not
communicate with their higher level of managers related to their tasks
and effective goal.
 Lack of compensation, workers could not compensate with each other if
any employees face any problem during work, then there is need of
coordination in decision making, problem solving, related to their issues.
 Conventional method because BOP is still using old method of programs
which create a lack of stability in work and documentation.
 BOP has a excellent services and products but it cannot participate in
enhancing the product and E-media. Less enhancing activities.
 Bad behavior of employees with customers in dealing as compare to the
others bank, employee did not behave in good manners with customers,
which leads to lack of trust of the consumers.
 Lack of abilities in workers and training programs, BOP have not conduct
any program related to their employee awareness program, that’s why
workers are not well trained in their job.
 There is also a lack of workforce in the bank.
 Due to lack of workplace, staff member as well as general people faces
problem and disturbance in bank.
 Some of employee faces a burden of work which may cause workers as
high pressure to their completion of work.
 As each worker performs their several duties in one time so this takes
extra time which may slow down the overall performance.
 Lack of internal control system is one of the big causes of BOP.
 Lack of behavior due to employees work irritation.
  Opportunities:
 Due to maximum Government Deposits BOP has the chance to spread its
networking in remote areas.
 The BOP organization has been developed by the new management, so
they have an opportunity to improve their qualities and work.
 BOP has an opportunity because they are started earning commission on
Government transactions.
 Due to high level of Revenue, so BOP has an opportunity to bring new
scheme related to, consumer loans in retail banking and in Agriculture
financing scheme to obtained huge market shares.
 BOP has an trust and reliability due to depended by Punjab Government,
create a chances to increase the deposits and profitability through
expand their services and products.
 Due to daily increasing in deposits of BOP, they have an opportunity to
increase their investments and financing in banking sector.
 The Bank of Punjab daily compete their competitors by conducting
Agriculture scheme of loans. So in that ways they play a vital role in
promoting the Agriculture sector. So that they have an opportunity to
compete their competitors in such a way.
 All the technologies of the 21st century are to be availed by the
information technology. Information technology is one of the most
important future in new world. However the BOP should work on IT,
especially on E-banking system. Bank can make a universal account like
other foreign banks, to enhance online banking system.
 The BOP has a great opportunity because of starting of Islamic banking
system.
 The BOP also deals with industrial sector. So in such a way most of
industrialist takes deposits in Punjab bank, which give advantage to BOP.
  Threats:
 Currently the Bank of Punjab is facing main threats which is a private
businessman could not prefer a Bank of Punjab due to its standard as
compare to the others private bank.
 The Bank of Punjab is now facing a heavy competition by its competitors
because of business of all banking sector is now at peak point.
 Lack of security, economic and also a political instability which is also a
big threat for BOP.
 Inflation is a major problem, in Modern type of banking system, these
are the also big threat for BOP, its leads to low deposits as well as reduce
the consumer demand.
 The changing trend in Punjab province of Government policies and rules
and regulation, which have a big threat for BOP.
 Political changes, up’s and down’s in politician parties also a major
threat for BOP, new parties come with new policies and rules, regulation
which may affect the performance of Banking sectors or systems.
 Due to high usability in our country and in economic situation the
investors step back due to condition of the country and avoid
investment related to their revenues.
 Muslim community also hate the consumer baking which results the BOP
faces a low level of deposits and investment, it is also a big threat for
BOP.
 The modern market concept, excellent services adopted by the
competitors it is also a major threat for Bank of Punjab.
 Transactions of all bank is increasing day by day which may affect the
deposits of the BOP so there is threat for bank.
  There are very difficult situation in our country at that time, banking
sector is now facing difficulties, however BOP is generate the maximum
profit the contrast condition can harm the financial system.

PEST Analysis:

“Changes in your organization by external environment can make good

opportunities for your organization and cause meaningful threats.”

PEST analysis is a local and mostly used objective which helps you to analyze
the Political, Economic, Socio-cultural, and Technological changes in your
organization Environment. It helps you to make the understanding the “big
picture” strategies of change that you were expressed to, and from this, take
benefits of the chances that they present

PEST analysis is very useful in following main problems:

 Its help you to point out your businesses or self opportunities and also
give you some special warning of meaningful threats.
 Its show the ways of changes in your business. It helps you in the
business result so what are you doing, so that you started work with
several changes.

PEST analysis of any organization’s to find out the main factors that affect the
organization. PEST analysis is compound of four words which is Political,
Economic, Social and Technological analysis. PEST analysis is a technique to
understand the forces that’s run the organization and how these factors can
affect the business or company.

 POLITICAL
 ECONOMICAL
 SOCIO-CULTURAL
  TECHNOLOGICAL

Here, now we discussed the external environment in briefly which can affect
the organization. These are as follow:

 Political:

The political situation of our country is not good. Every government has its
own new policies which can affect the organization by easily. Every
government put aside the policies of previous government and also creates a
new tax policies and other regulation promotes the economy. When the
political circumstance is not good, the foreign investors could not come in our
country for investment which can affect the whole profit result of the
organization and foreign investment rate goes down.

Political factors include areas such as tax policy, employment laws,

environmental rules, trade restrictions and tariffs and political instability.

 Economical:

The bank of Punjab is operating their every work in present economy. The
economic situation of the country is not at peak point of the market. Heavy
financing and also increasing inflation rate makes the business structure
strong. Due to higher inflation rate make cause of production and our country
goes to well out products at a maximum level of prices with the rate of low
margin.

The banking organization and the industrialism are equal. How earnings flow,
whether the economy is booming or hardly survive during time of recession.
Economic factors are economic growth, interest rates, exchange rate and
inflation rate. The reason behind them, when economic factors affect on
customer borrow or uses fund at banks.
  Socio-Cultural:

In this condition, several processes may effect the organization like tendencies,
behavior in values and accepts of individuals living in various zones. The Bank
of Punjab is providing different services related to their several demands and
changing ways of life. Social factor mostly look at the culture purpose and also
include health, growth rate, career tendencies, population, distribution and
relay on safety.

Culture grasp, such as buying activity and needs, affect how people watch and
how consume baking options. People modify to bank for proposal and relief for
financing related to their business, home and institutes. Consumer need
information from bank tellers related to their savings account, credit card,
investment and etc.

 Technological:

Technical gain is very important tool to serve the services and consumers
changing demands. The development in organization and higher technology
help the organization to compete their competitors in world market area.

Technology is now provides to how customers settled their funds. Several

banks offer a mobile app to witness accounts, sending funds and pay bills on
mobile app. Smartphone can cheques, and the bank can easily process it their
end, at their navigation.

Debit cards are also change the way of banking. Chips have been inserted, the
user insert the card into machine instead of swipe them. Even banks
themselves are now utilizing the technology in organization, to improve their
work and make it easy to work without of effort which gives a more and more
benefit to organization. It provide a standard which is good for the
organization.