Internship Report on

Presented to

Dr. Prof. Sayyid Salman Rizavi

Assistant Professor
Hailey College of Commerce
University of the Punjab

Presented by

Tabassum Nawaz
BC-614
8th Semester
Section(C)
B.Com (Hons) 2008-2012

Hailey College of Commerce

University of the Punjab
Dated 20-09-2012

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 Letter of Transmittal

Prof. Dr. Sayyid Salman Rizavi

Assistant Professor
Hailey College of Commerce,
University of the Punjab, Lahore.

Dear Sir,

I am submitting to you the report, due 20th Sept 2012, that you requested.
The report is entitled “Internship Report on The Bank of Punjab”. The purpose of the
report is to inform you of my practical job experience at The Bank of Punjab. The
contents of this report concentrate on the Scope of Works, Approach & Methodology,
Work plan and Organizational Structure of the bank. This report also contains SWOT &
Ratio Analysis and Interpretation of Financial Ratios. If you have any questions
concerning this report, please feel free to contact me.

Sincerely,

Tabassum Nawaz
Fresh-Graduate

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PREFACE
University of the Punjab is one of the best and leading universities of Pakistan
and is highly recognized across the world. The Hailey College of Commerce, University
of the Punjab has recognized with a vision and motive to provide the quality education
in various areas of study. This college right from its establishment has started rendering
its educational services to youth of the region that is in a quest of getting top class
education at affordable cost. I feel myself proud as being a part of the programs offered
by Hailey College of Commerce, university of the Punjab and chiefly it is a great honor
for me to be one of the students who called Hailians.
One of the main characteristics of HCC (PU) is its superb faculty that is
comprised of specialists in their fields with scholastic approach. In order to prepare and
give a practical and professional touch HCC (PU) arranged an Internship program after
Eight and last semester. It proved to be very helpful for all the students in understanding
the different business aspects. So,in order to accomplish this purpose, I joined bank of
Punjab (BOP) that is well established Bank and has diversified portfolio of business.
During my internship span of two months I got chance to work in few departments and
got information from those departments. The whole staff of the bank was cooperative
and very helpful.
Definitely, I was not able to work on the entire organization due to short span of
time and furthermore I was not allowed to check all the records and documents of the
Bank as it was against the rules and regulations. But I have tried my best to grasp the
major and main areas of banking and compile them same in this report. My foremost
intention in preparing this report was such that anyone who read and study this report
can get maximum information about the BOP and be able to understand its working
environment. I hope that I will succeed in my efforts.

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 ACKNOWLEDGEMENT
My Creator, my best friend and mentor, who bestowed on me the meaning of life.
“ALLAH” who granted me a wealth of knowledge, love and respect to share with my
fellow beings .He gave me courage to pursue against all odds.
I pay all our praises to the great prophet, HAZRAT MOHAMMAD (PBUH) with
whose love my heart is enlightened and I feel the surging waves of real mirth, deep
down my soul.
My mother who’s rising gave me character and a compassionate heart. And also
my dad who was always there to support me.
I pay my thanks to ASST. PROF. Dr.Sayyid Salman Rizavi, whose supervision
enabled me to complete this assignment.
My heartily thanks to Staff of The Bank of Punjab, Ghari Shahu Branch Lahore
for their cooperation.

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 TABLE OF CONTENT

 Executive Summary 7
 Introduction to Report 8
 Introducing Bank 9
 Pakistan banking sector 11
 History of the Organization (BOP) 12
 Awards and achievements 13
 Vision and mission statements 14
 Competitors of (BOP) 16
 Management of the Organization & Structure 17
 Field of Activities 23
 Work done by me 29
 Financial Statement 37
 Financial Analysis 44
 Graphical representation of BOP 63
 SWOT Analysis 67
 Conclusion 73
 Recommendations for improvement 74
 New knowledge acquired 76
 Reference. 77

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 List of Illustration

 Management of BOP

 Organization Hierarchy Chart

 Management hierarchy chart of Ghari Shahu Branch

 Graph Growth in Deposits

 Advances distribution among different sectors chart

 Net Advances chart

 Cash chart

 Home remittance chart

 Investment mix chart

 Investment graph

 Ratio analysis charts

EXECUTIVE SUMMARY

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I did my B.Com (hons) from University of the Punjab. Internship is a practical
experience which is mandatory for every individual pursuing B.Com (hons) degree.
Therefore I applied for the internship and get a chance to work in The Bank of Punjab.
The task is given to me to do internship and also making internship report.
In two month internship program, during my internship I learnt about Banking
procedures and how things work there. It was quite a good experience working there in
real environment, The staff at The Bank of Punjab Garhi shahu branch was kind
enough to accommodate me and teach me with their work and I have worked in
different departments and I successfully completed all the tasks that were assigned to
me and I also learned about documentation requirements and record keeping for
different activities and processes.

In this report, I have given the brief introduction of organization’s business sector, The
Bank of Punjab history, organization hierarchy chart, Business volume, product lines
and competitors.
The department’s introduction in which I worked and gain experience, the departments
are as follows;
 Account Opening Department
 Cash Department
 Clearing department
 Remittance Department
 Foreign Exchange Department
 Bills department
 Customer services department
The next portion of my report contains the financial analysis of “The Bank of
Punjab” in which I have made the ratio Analysis; in the last portion of this report
future outlook of the organization, SWOT analysis, conclusion and
Recommendations for improvements are discussed also reference & sources
used and annexes also at the end of the report.

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 INTRODUCTION TO REPORT

The core objective of preparing this report is to express my learning during the 2
months period of internship. This is emulating of my practical experience that is
originated through time spent in “The Bank of Punjab”.

The report is about The Bank of Punjab, various fields of activities and its financial
analysis. In this report, SWOT analysis is also conducted so that I may able to give an
authenticated approach to problems faced by the Branch. Management style is totally
participative and its culture is friendly and cooperative.

I learnt a lot of different fields, and organizational behavior in real world phenomenon
which gave me practical knowledge of what I have studied theoretical in B.Com
(HONORS)/M.COM.

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INTRODUCTION TO BANK

The term bank is derived from the Italian word “Banca”. The Jews of Lombardy ( a
province of Italy) used to transact the business of money changing on benches placed
in market places and as such their benches were usually called ‘Banca’ it is called
money changers place. The word ‘Banca’ later on converted into the word “Bank”.

The origin of banking is also traced to early goldsmiths. They used to keep strong safes
for storing the money and the valuables of the people. The persons who had surplus
money found it safe and convenient of deposit their valuables with them.

The first stage in the development of modern banking, thus, was the accepting of
deposits of cash from those persons who had surplus money with them.

The goldsmiths used to issue receipts for the money deposited with them. These
receipts began to pass from hand to hand in settlement of transactions because people
had confidence in the integrity and solvency of goldsmiths. When it was found that
these receipts were fully accepted in the payment of debts; then the receipts were
drawn in such a way that it entitled any holder to claim the specified amount of money
from goldsmiths. A depositor who is to make the payments may now get the money in
cash from goldsmiths or pay over the receipt to the creditor. These receipts were the
earlier bank notes. The second stage in the development of banking thus was the issue
of bank notes.

The goldsmiths soon discovered that all the people who had deposited money with
them do not come to withdraw their funds in cash. They found that only a few persons
presented the receipts for encashment during a given period of time. They also found
that most of the money deposited with them was lying idle. At the same time; they found
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that they were being constantly requested for loan on good security. They thought it
profitable to lend at least some of the money deposited with them to the needy persons.
This proved quite a profitable business for the goldsmiths. They instead of charging safe
keeping charges from the depositors began to give them interest on the money
deposited with them. This was the third stage in the development of banking.

DEFINITION OF BANK

The term ‘Bank’ is being used for a long time, yet it has no precise definition. The
reason is that the commercial banks perform not just one but many types of functions.
Following are some definitions of Bank by different authors.

According to Crowther

“Bank is a dealer in debts- his own and of other people”

According to G.W.Gilbert,

“A banker is a dealer in capital or more properly dealer in money. He is

an intermediate party between the borrower and the lender. He borrows money from
one and lends it to another”

According to Banking Companies Ordinance (1962)

“Banker means person transacting the business of accepting for the purpose of lending
or investment, of deposits of money from the public, repayable on demand or otherwise
and withdraw able by cheque, draft, order or otherwise and includes any Post Office
Savings Bank”

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 PAKISTAN BANKING SECTOR

Banking in Pakistan

In Pakistan, before a bank starts its operation, either domestically or internationally it

has to obtain a banking license to begin banking business. This license is issued when
all requirements of the relevant laws are fulfilled as per requirement of the state Bank of
Pakistan, being the regulator under provision of Banking Companies Ordinance 1962.

According to Banking Companies Ordinance 1962 sub section (c)

“Banking Company means any company that transacts the business of banking in
Pakistan and includes their branches and subsidiaries functioning outside Pakistan of
banking companies incorporated in Pakistan”.

The banks have played a vital role in the development of the industrial and agriculture
sector of Pakistan. In addition to the traditional banking services, banks are also
providing consumer loan facilities under the umbrella of consumer banking.

Types of Banks working in Pakistan

 Nationalized Schedule Banks

 De-Nationalized Schedule Banks
 Specialized Banks
 Private Schedule Banks
 Foreign Banks
 Development Financial Institutions

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 HISTORY OF THE ORGANIZATION (BOP)

Established in 1989, in pursuance of The Bank of Punjab Act 1989 and was given the
status of scheduled bank in 1994. The Bank of Punjab is working as a scheduled
commercial bank with its network of 284 branches at all major business centers in the
country. The Bank provides all types of banking services such as Deposit in Local
Currency, Client Deposit in Foreign Currency, Remittances, and Advances to Business,
Trade, Industry and Agriculture. The Bank of Punjab has indeed entered a new era of
science to the nation under experience and professional hands of its management.

The Bank of Punjab plays a vital role in the national economy through mobilization of
hitherto untapped local resources, promoting savings and providing funds for
investments. Attractive rates of profit on all types of deposits, opening of Foreign
Currency Accounts and handling of Foreign Exchange business such as Imports,
Exports and Remittances, Financing, Trade and Industry for working capital
requirements and money market operations are some facilities being provided by the
Bank. The lending policy of Bank is not only cautious and constructive but also based
on principles of prudent lending with maximum emphasis on security. As agriculture is
considered as backbone of our economy the Bank of Punjab has introduced "Kissan
Dost Agriculture Finance Scheme" to small farmers.

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 BOP Awards & Achievements

Excellence Award by the Central Board of Revenue

The Central Board of Revenue presented "Excellence Award" to the Bank of Punjab in
recognition of the contribution made by the bank towards Government exchequer.

3rd Kissan Time Awards

In recognition of Bank's contribution in development and growth of agricultural sector,
the Bank honored with "Top Bank for Agriculture Loans” and "Best Bank Crop
Insurance" under 3rd Kissan Time Awards year 2006.

Best Corporate Report Award

Annual Report of the Bank for the year 2005 won 5th position for "The Best Corporate
Report Award" for the financial sector, adjudicated jointly by the Institute of Chartered
Accountants of Pakistan and the Institute of Cost and Management Accountants of
Pakistan.

16th Bolan Excellence Award

The Bank was awarded Best Bank Award under 15th Bolan Excellence Awards
distributed in 2006.

Achievement Award
The Lahore Chamber of Commerce & Industry (LCCI) awarded the Bank "LCCI
Achievement Award" 2006.

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 VISION STATEMENT
With the passion for innovation and fortified pride in who we are, our aim is to deliver
more and contribute to the prosperity of Pakistan and every Pakistani.            

         

"To be a customer focused bank with service excellence"

MISSION STATEMENT
We provide the service that enables people and businesses to extend themselves so
they can reach new heights, fulfill their aspirations and achieve the best that’s on offer.
With our customer knowledge and insight, we are determined to be a truly customer-
driven business. Revitalized passion at the core, we are committed to delivering
customer satisfaction, developing business integrity, and establishing pride in the
people.

“To exceed the expectations of our stakeholders by leveraging our relationship with the
Government of Punjab and delivering a complete range of professional solutions with a
focus on program driven products & services in the Agriculture and Middle Tier Markets
through a motivated team”

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 Core Values

Our Customer As our first priority

For the prosperity of our stakeholders that allows us
Profitability
to constantly invest, improve and succeed.
Corporate Social
To Enrich the Lives of community where we operate
Responsibility
Recognition and
For the talented and high performing employees
Reward
Excellence In everything we do
Integrity In all our dealings

Respect For our customers and each other

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 Major Competitors of BOP

There are different competitors of BOP are exist in general and commercial banking
sectors.

Most prominent competitors are:

 MCB (MCB Bank)

 NBP (National Bank of Pakistan)
 HBL (Habib Bank Limited)
 UBL (United Bank Limited)
 ABL (Allied Bank Limited)
 Bank Alfalah
 Standard Chartered Bank etc.

MANAGEMENT OF THE ORGANIZATION (BOP)

BOARD OF DIRECTORS

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ORGANIZATIONAL HIERARCHY OF BOP

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 BOARD OF DIRECTORS

Head of HR

President & CEO

Company section Head of
compliance &
internal control

Board audit Board Risk CEO secretariat

committee management Head of risk & credit policy
committee
Business
manager Chief financial
officer

Head of Audit &

RAR Head of operations &
IT

DCEO

Head of treasury Head of Head of retail Head of Agri-Head Head of Special Assets Head of Islamic
& Equity capital corporate & Banking commercial strategic Management Banking &
market investment banking development Modarba
banking

INDIVIDUAL BRANCH STRUCTURE

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An individual branch of BOP follows the following level of hierarchy.

1. Branch Manager
2. Operations Manager
 Cash Department
 Remittances Department
 Clearing & collection Section
 I.T Department
 Account Opening Section
 Foreign exchange
3. Accounts Manager
 In-charge Accounts
4. Credits manager
 Corporate Finance Officer
 Lease Operating Officer
5. Consumer Finance Manager
 Home Finance Officer
6. Business Development Officers (BDO)

MANAGEMENT HIERARCHY OF GHARI SHAHU BRANCH

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 BRANCH NETWORKS

 Corporate Region
 Lahore North Region
 Lahore South Region
 Faisalabad Region
 Multan Region
 Gujranwala Region
 Rawalpindi Region
 Peshawar Region
 Karachi / Quetta Region

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COMPETITIVE STRATEGIES OF THE BANK OF PUNJAB

1. No Strict Chain of Command

In BOP there is no strict chain of command. It is strictly a learning organization and
seriously criticizes bureaucracy. Employees are not controlled to treat in their won
assigned work activities only; rather they can take part in other department work tasks
and assignments too to learn the maximum about BOP’s corporate banking.
2. Frequent Job Rotation
BOP exercises a lot of job rotation among its employees. If the employees do the same
work every day they tend to get bored of it and this might influence their work activities
harmfully. So, in order to avoid this BOP makes regular job rotation of the employees in
their bank.
3. Out of the way customer orientation
One of the main strengths of BOP is their policy of implementing the highest Degree of
“Customer Orientation”. BOP employees make persistent hard work to please their
customers in every possible imaginable way.

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 FIELDS OF ACTIVITIES

Account Opening Department

The function of this department is to open an account; Account opening
department is the key department of the bank because deposit is the need of every
bank. No bank can run its operations without deposits. Receiving of deposits is an
essential function of all commercial banks. Banks collect deposits and with the help of
these deposits bank lend money to needy customers and charged interest on these
lending money. It’s become the income of the bank. Bank offers different kind of
accounts to;
 For single, sole proprietorship & joint personal
 For partnership, limited Company, trust, clubs etc.

Details of the Account Opening Form

In the account opening form the customer is required to provide the following
information. The first part establishes the currency in which the account is to be
maintained. The currency includes

 Pakistani rupee
 U.S. dollar
 Pound sterling
 Euro
 Others
The second part then establishes the preference regarding the type of account to be
maintained. The various choices are
 Profit and Loss sharing/ Savings account
 Current account
 Corporate premium account

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  Business Tijarat account
 Young line Saving Account

The information to be provided in the account opening form is as follows

 Title of the account is to be written in block letters.

 The customer is to provide the information whether the account would be
maintained single or jointly.
 Name of the person who intends to operate the account.
 Provision of Father’s/Husband’s name is necessary.
 Profession of the potential account holder is also to be written.
 Name and complete address of the employer is to be written.
 Nationality is to be provided.
 Country of residence is to be specified.
 Telephone number is essential.
 The CNIC is an essential part of the opening of the account.
 Passport number, if the prospective customer has got one.
 The prospective customer also has to provide the name, address and
relationship of any one of his/her close relatives in order to ease the
communication problem.
 In case of a business concern there are two more things that are to be provided
by the business.

Issuance of Account Number

After obtaining all the information from the customer on account opening form. The form
will give to the concern officer who is dealing this department. Officer put entry in to the
BOP system 2001 and then generates the entry number which is written on the account
opening form then the manager operations or manager can authenticate this entry then

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the account number generated to the customer. Then the customer deposits some cash
in this account for use it account for future period.

Issuance of a Cheque Book

After opening of account, requisition slip is taking and then gives to the officer, the
officer make entry into the BOP system 2001. After 4 to 5 working days cheque book
are comes from head office. Then we give cheque books to the customers.

Entry of a Cheque Book

This includes
 Enters it in the cheque book issue register
 After entry in the register the employee issues the cheque book to the account
holder after his/her signature on the register.

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 REMITTANCES DEPARTMENT

What is remittances

Remittances can be defined as an act of transferring money to a distant place. Banks

issue remittances on behalf of customers after receiving the value of remittances and
related charges. Remittances as such play a vital role in our day to day business.
Because payment in cash is not only risky but also time consuming. Functions of this
department include issuance of different bank instruments like;

 Demand drafts (DD)

 Payment orders (PO)
 Call deposit receipt (CDR)
 Online Transfer of Funds

CLEARING DEPARTEMENT
WHAT IS CLEARING?
Clearing means presenting cheque, Pay Order, Draft or any other negotiable
instruments through the banking procedure for its ultimate payment through clearing
house by the drawee bank.
CLEARING HOUSE
Clearing house is a place where representatives from member banks get together with
the objective of exchanging cheques and other negotiable instruments drawn upon their
respective banks and to settle the claims.

For settlement of clearing an independent body is required and State Bank of Pakistan
has allowed NIFT (National Institution Facilitation Technologies) to handle clearing

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 processes in big cities. NIFT is private body, which providing clearing house facilities to
all member banks since 1960. they provide services on behalf of SBP is to supervise
functions of clearing house in major cities and to coordinate with clearing member bank
and SBP in settlement of their claims.
Clearing Process:
Clearing process starts when Account holder BOP receives the cheque of other banks
like Habib bank Limited, MCB etc. and he presents his cheque to his concerned branch
to be cashed. At the same time clearing process starts.
Classification of clearing:
 Intercity clearing
 Local clearing
Types of clearing:
Clearing are of two types
 Inward clearing
 Outward clearing

Reasons why cheque may not be entertained or returned in clearing

Returned un-paid for reason NO.

1. Drawer’s Signature differs from specimen supplied

2. (a) Cheque Post dated (b) Cheque is out of date/Mutilated
3. Amount in words and figures differs
4. Alteration in ----------- Requires Drawer’s full Signature
5. Payment stopped by the drawer
6. Effects not Cleared; may be presented again
7. Not arranged for
8. Exceeds arrangement
9. Crossed CHEQUE must be presented through a Bank
10. Clearing house stamp required

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 COLLETION / BILLS DEPARTMENT

Collection department is also known as bills department, in this department cheques of

other banks located in other cities are presented in bills department and sent to
respective bank branches for collection, it is normally a 5days procedure, bank charges
it commission and FED plus courier charges and credits the remaining amount to the
customers account. BOP currently charges 0.3% commission on the amount of cheque
or Rs. 25 which ever is higher, 16% FED on commission and Rs.100 courier charges.
The cheque is sent under a covering schedule to our main branch in the city to which
the cheque belongs which further lodges it in clearing to the other bank branch. Three
stamps are affixed on the cheque; special crossing, discharge and OBC/IBC. The
branch which lodges the cheque treats it as OBC whereas it becomes IBC for the
proceeds of the cheque are credited on realization.

CASH DEPARTMENT

Cash department is the most important department in the bank. Cash department
manage all cash related activities. If any customer wants to deposit his money he must
go to cash counter. No other employee can take his money. And also withdrawal of
cheque or cash is done through cash department. Cash department perform functions
like:

 Cash receipts
 Cash payment
 Funds transfer
 Collection utility bills

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  Sale and purchase of prize bond

Task performed by me during internship

Customer service department:

1. Providing all kinds of basic information to the customers

The basic and primary purpose of customer services officer is to provide information to
any existing or likely new customer regarding account opening process, types of
accounts offered in BOP, credit information or information concerning different products
and services offered by BOP.

3. Filling of deposit slips for customers

The official employees and internees often fill the all deposit slips. Following are the
deposit slips and requests filled upon by the formal employees, internees and customer
itself
 Cash deposit slip
 Cheque Deposit Slip
 Cash online slip
 Call deposit receipt
 Pay order/ Demand draft slip
 Filling the cheque of customers
 ATM form

Pension:

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During my internship program I also work in this department. In this department I give
pension to the retired persons of Punjab road transport Corporation. The retired pension
has its own pension book where his picture is pasted; I check his picture, book number
from the file where pension amount is there. After verification I will pension to concerned
person.

Accounts opening department

Account opening is important department of banks. Customers must be open an

account to use banking facilities. Mr. Zeeshan Ahmad working in this department, he
guides me how to open an account. I also work in this department with Mr. Zeeshan
Ahmad. He gives me the task to open accounts to customers and I opened many
accounts under the supervision of the officer. Before opening the account telling the
customers about the banking facility or Accounts types which are running in our branch.
After telling all detailed of account types asking from customer what kind of account he
wants to be opened. If he wants to open an account in this branch then asking from him
about different documentation. If he has individual then CNIC copy is must and CNIC
no. he sent to NADRA for verification. If the customer is sole proprietor then letter head
is must required what work he has to do. CNIC copy, KYC (know your customer), NTN
no. introducer of the customer who already has account in this branch. And customer is
not sloe proprietor then CNIC copy and salary statement if he works in any organization.
And the customer opens the current account then minimum requirement to maintain its
balance is Rs. 10,000 otherwise monthly charges are deduct for Rs.58 if he can’t
maintain its balance. There is no deduction in basic banking account. And in case of
partnership, limited company and trust etc. documents required. Attested photocopy of
CNIC of all partners, attested photocopy of partnership deed duly signed by all partners.
Attested photocopy of registration of firm with registrar of firms. In case of partnership
unregistered the fact should be mention in account opening form. Authority letter, in

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original, in favor of the person authorized to operate on the account of the firm. KYC
and NTN certificate.

Filling of account opening form is task assign to me when customers want to open an
account. In this department I work efficiently with my officer the way he guide me I done
my work.

Now detail of filling of account open form

Firstly interview the customer, from where he lives and why he wants to open an
account after that the CNIC no. sends to NADRA for verification, after NADRA
verification comes and no objection in it then we opened the account. See original ID
card. Letter head in case of sole proprietor and in case individual salary statement are
required.
Now filling the account opening form as required in form. Account holder name, his
permanent address, correspondence address, his guardian names, mother name, and
his date of birth etc. after filling all requirements, signed from customer as required in
the form. And signed in Specimen signature card. Signature verified stamp is affixing.
This card is helping for signature verified when customer comes to withdrawal of
money from his account. Scan signature from SS (specimen signature). After this all
work is done through computer using software. CRM Id is comes after filling information
in the system. After authorization of manager account is open. And customer is ready to
use it account. After issue him account number customer must deposit his money at
that, after that he enjoy the facility of our bank.

Issuance of cheque book

This task is also performing in the bank during my internship. For new account holder
“Form A” is required for issuance of check book. Form A is required for new account
holder for issuance of cheque book. And also requisition slip which is only for existing

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account holders who fill there slips for new cheque book. Form contain following detail.
Account number of customers, date should be mentioned on the form, customer must
tell what kind of cheque book, 10, 25 and 100. Cheque book serial number from its
issued or what number its end. First put information to cheque book issued register,
Signature from customers on for requesting of cheque book or receiving of cheque
book.

Clearing department:

During my internship I work in clearing department. This department is playing a role of

an agent. Some cheques are local and some are out station. NIFT (national institution
facilitation technologies) is providing services to clearing a cheques or other negotiable
instrument.

The officer of this department also assigned me duty to check clearing either it is inward
clearing or outward clearing. First received an inward clearing in morning. Officer
assigned me duty to check the all cheques. The procedure of checking the inward
clearing is to check the amount in words and figures are same. Cheques are not post
dated, all stamping are affixed. Stamps affix on clearing cheques are special crossing
stamp, and clearing stamp and endorsement is given by presenting bank, All the
requirement is correct then check the clearing difference as we send cheques in
outward clearing and receive cheques as inward clearing, difference represent the
amount is favorable or unfavorable. Some cheques are returned due to insufficient
balance or other reasons. Then we returned the cheques with retuned memo. Explain
the reason why we returned cheques. If the amount is favorable then make a vouchers,
one is credit voucher and one is debit voucher and also make IBDA (inter branch debit
advice).
And if the difference of inward clearing and outward clearing is unfavorable, then
prepare IBCO (inter branch credit order) and also make two vouchers. One is debit and
other is credit.

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Officer also assigned the duty to make the outward clearing. When I prepare outward
clearing few points must keep in mind, cheques are not post dated. Amounts in figures
and words are same. The details of the cheques are correctly filled in. Any cutting on
pay in slip is authenticated by the depositor, after that affixing the stamps on the pay in
slip and cheques. Stamps that affix on the cheques are special crossing stamp, payee’s
account credit stamp, and clearing stamp (next working day stamp). After affixing stamp
and post in system, on clearing slips wrote down the information, numbers of
instruments, total amounts and seal no. also write on clearing slip. NIFT person comes
and collect bag, they are sent to NIFT. NIFT after segregating the cheques of different
banks delivers them to their concerned banks. After delivering the cheques to different
banks NIFT send report to our branch. Then we tally the amount of that report with our
own record. Next morning, these cheques are delivered to the respective banks, in the
same time other banks present clearing drawn on our branch.

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Remittance Department

I also work in remittance department, in this department pay order or demand draft and
CDR are issued, in this department I fill the application form of pay order and demand
draft, online slips and CDR, pay order and demand draft are secure method of payment.
First I check that the customer is our account holder or walk in customer, if the
customers has no account in our branch then we CNIC card copy, and also he pays
charges of Rs. 116. In which our bank commission, FED charges and courier charges.
After filling all the information I give application form to bank officer then he issued the
pay order and demand draft.

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 Foreign remittances department

In foreign Remittances department we can do the online payments of different

customers and that payments comes from the outside the countries likes (UK, Dubai,
Kuwait, and Australia) etc.
The bank of Punjab has uses different companies to pay foreign remittances payments
to the customers.
 Express money (UAE payments)
 Aftab currency exchange
 Western Union
 Easy paisa

In easy paisa there are also some companies due to which we can pay the foreign
payments like

 Habib express
 Lulu international exchange
 Dux international
Before giving the payments we can check the following documents from the customers
and then finally make payments.
Check the Following documents:
 First of All we collect the Secret PIN code from customer and enter in the system.

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  If system accepts the code then system opens the payment Page.
 And after that we can check the original CNIC card of the customer
 Enter required information.
 After enter all the required information into the system then we take print.
 Then take signature from the concern person as per ID card. The put signature
verified stamp and send this person to the officer for signatures.
 After that customer receives the payment from the cashier.

Cash Department:

In this department only task is given to for collection of utility bills no other task is
assigned to me because this department is restricted department.
The officer tells me about the type of currency;
 Fresh currency notes
 Re Issuable notes
 Soiled notes and;
 Claim notes

Bills Department Lockers

In this department some tasks also assigned to me, and I done my work according to
the instruction of my officer. Following work is done in this department.
First I scrutiny of cheque, scrutiny of cheque means check the cheque is not post dated,
not stale, mutilated, amount in words and figure are same, no cutting on cheque as well
as on slip, if any cutting there then check the signature of the customer, if no signature
there then tell the customer to signature on cutting otherwise fill a new slip, after
checking all the things I enter the cheque in OBC (outward bills for collections) register,
after that stamping affix on cheque, three stamps are required i.e. special crossing
stamp, OBC stamp, and payee’s account will be credited on realization. The following
tasks are assigned to me as I mentioned above

Lockers department

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I issues new lockers to customers and also give them instructions about operating.

FINANCIAL STATEMENTS

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 FINANCIAL ANALYSIS
“Financial statement analysis is the process of identifying of financial strengths and
weaknesses of the firm by properly establishing relationship between the items of the
balance sheet and profit and loss statement,” and it is done through ratio analysis.

Credit Rating
Long Term AA
Short Term A1+

Rating Definition

Long Term Rating

AA: Very high credit quality. AA Ratings denote very low expectation of credit risk. They
indicate very strong capacity of timely payments of financial commitments. This capacity
is not vulnerable for foreseeable events.

Short Term Rating

A1+: Obligations supported by the highest capacity of timely repayments.

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Ratio Analysis
Ratio analysis is the calculation and comparison of ratios which are derived from the
information in a company's financial statements. Financial ratios are usually expressed
as a percent or as times per period.
Liquidity Ratios:
Liquidity ratios measure a firm’s ability to meet its current obligations.
These include:
 Current ratio
 Acid test ratio
 Working capital

Current ratio=Current Assets/Current Liabilities

(Rupees in ‘000’)
Year 2010 Year 2011

=170346168 /127440541 =218660396/161856166

=1.33 times =1.35

Working#1: Current Assets Year 2010 Year 2011

(Rupees in ‘000’)

Cash and balances with treasury banks 14069601 16698333

Balances with other banks 3276234 3607107
Lending’s to financial and other institutions 7309587 7447375
Investments (N#1) 52718809 91992653
Advances 87489968 89973567
Other assets (N#2) 5481969 8941361
170346168 218660396

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N#1: Investment Year 2010 Year 2011
(Rupees in ‘000’)

Market Treasury bills 35498737 73540387

Units of mutual funds 4401009 3804928
Government of Pakistan Ijara sukuk bonds - 10000
NIT units - 860991
Pakistan investment bonds 2509717 8500711
Listed Term finance certificates 671002 518085
Unlisted Term finance certificates 9638344 4757551
52718809 91992653

N#2: Other Assets Year 2010 Year 2011

(Rupees in ‘000’)

Income/ mark up accrued in local currency 3718039 4034281

Income/ mark up accrued in foreign currency 177095 130253
Advances, deposits, advance rent and
Other prepayments 99841 3254019
Branch adjustment account 311964 334818
Suspense account 451 7051
Advance taxation (provisions less payments) 1147911 1160655
Stationary and stamps in hand 26668 20284
5481969 8941361

Working #2: Current Liabilities Year 2010 Year 2011

(Rupees in ‘000’)

Bills payable 581100 850569

Borrowings 11526783 24963566
Deposits and other accounts (N#1) 111424288 130849914
Other liabilities (N#2) 3908370 5192117
127440541 161856166

N#1: Deposits and other accounts Year 2010 Year 2011

(Rupees in ‘000’)
Customers
Remunerative savings deposits 75625569 85967327
Non- Remunerative current accounts 30231757 39229738
Margin deposits, sundry deposits 1467019 1702147
Financial institutions
Remunerative savings deposits 3090511 3689326
Non- Remunerative current accounts 1009432 261376
111424288 130849914

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N#2: Other Liabilities Year 2010 Year 2011
(Rupees in ‘000’)
Mark-up/ interest/ interest payable in
Local currency 3553109 4574218
Mark-up/ interest/ interest payable in
Foreign currency 9279 15056
Unclaimed Dividends 2686 2674
Accrued expenses 159255 413370
Provision for employees compensated
Absences 184041 186799
3908370 5192117

Graphical representation of ratio

Interpretation:

Current ratio measures the ability of bank current assets to meet its
current liability. Normal current ratio is 2:1 it consider best ratio. Ratio below 1, its
means the bank current assets not in position to meet its current liability or its short-term
obligation. In the above scenario current ratio increases over the years, As in 2010
current ratio is 1.33 and it decreases in 2011 and goes to 1.35, the bank current ratio
shows that the bank current assets meet its current liability.

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Acid test ratio=Current Assets – inventory – prepaid expenses/ Current Liabilities
(Rupees in ‘000’)
Year 2010 Year 2011

= 170246327/127440541 =215406377/161856166
=1.34 times =1.33 times

For year 2010

Working #1: Liquid Assets= Current Assets –prepaid expenses

= 170346168 - 99841
=170246327

For year 2011

Working #1: Liquid Assets= Current Assets –prepaid expenses

=218660396 - 3254019
=215406377

Graphical representation of ratio

Interpretation:

Acid test ratio/ quick ratio measure the liquidity of the bank. This ratio
measures current obligation/ short-term obligation immediately, its normal ratio is 1:1, if

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the ratio is less than 1 then it is an alarming situation for an organization because in this
situation the bank can’t meet its short-term obligation. From the above scenario acid
test ratio of the bank of Punjab is 1.33 in year 2010 and in year 2011 ratio is 1.33, which
shows that the bank has in good position, bank can meet its short-term obligation
immediately.

Working capital= Current Assets – Current Liabilities

(Rupees in ‘000’)
Year 2010 Year 2011

= 170346168-127440541 =218660396-161856166
=42905627 =56804230

Graphical representation of ratio

Interpretation:

Working capital ratio measure the short term solvency position of the Bank, the positive
working capital ratio tells the bank has in position to meet its short-term obligation, on
the other hand negative working capital shows that the bank has unable to meet its
obligation. The bank of Punjab in year 2010 working capital is Rs. 42905627 and in
2011 working capital is Rs. 56804230.

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b) Profitability Ratios
Profitability ratios measure the earning ability of a firm.
These include:
 Net Profit Margin
 Return on Assets
 DuPont Return on Assets
 Operating Income Margin
 Return on Operating Assets
 Return on Total Equity
 Gross Profit Margin

Net Profit margin= Net profit after tax/ Net Sales*100

(Rupees in ‘000’)
Year 2010 Year 2011

= (4029277)/18220175 *100 =347973/20685011 *100

=(0.2211) *100 =0.0168*100
=(22.11)% =1.68 %

Graphical representation of ratio

Net Profit Ratio

2011 1.68

Net Profit Ratio

-22.11 2010

-25 -20 -15 -10 -5 0 5

Interpretation:

This ratio shows the efficiency of the bank. The higher the net profit margin is, the more
effective the company is at converting revenue into actual profit. The bank net profit

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ratio in 2010 is (22.11) % it increases in 2011 which is 1.68 % which is not good in
2010, it means bank can’t uses its resources well but shows increase in 2011.

Return on Assets= Net profit after tax/ Total Assets *100

(Rupees in ‘000’)
Year 2010 Year 2011

=(4029277) /229190273 *100 =347973/280997531*100

=(0.0175) *100 =0.0012 * 100
=(1.75) % =0.12 %

Graphical representation of ratio

Return on Assets

2011 0.12

Return on Assets

-1.75 2010

-2 -1.5 -1 -0.5 0 0.5

Interpretation:

This ratio shows an indicator of how profitable a company is relative to its total
assets. Return on asset gives an idea as to how efficient management is using its
assets to generate earnings. . In 2010 the bank ROA (return on Assets) is (1.75) %, in
2011 it is 0.12 %.It means that bank can’t use its assets well to generate revenue from
its assets.

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DuPont return on Assets= Net income margin* Total Assets turnover
= Net income/Net Sales * Net sales/ Total Assets
= Net Income/Total Assets Turnover*100
(Rupees in ‘000’)
Year 2010 Year 2011

=(4029277) /229190273 *100 =347973/280997531*100

=(0.0175) *100 =0.0012 * 100
=(1.75) % =0.12 %

Graphical representation of ratio

Dupont Return on Assets

2011 0.12

Dupont Return on
Assets

-1.75 2010

-2 -1.5 -1 -0.5 0 0.5

Interpretation:

This ratio shows the impact of changes in total asset turnover and net profit margin, the
bank DuPont return on assets for 2010 is (1.75) %, in 2008 it is 0.12 %.

Return on operating assets= Net Income/ Operating Assets *100

(Rupees in ‘000’)
Year 2010 Year 2011

=(4029277) /17345835 *100 =347973/20305440*100

=(0.2322) *100 =0.0171 * 100
=(23.22) % =1.71 %

Working of operating assets: Year 2010 Year 2011

(Rupees in ‘000’)
Cash & balances with treasury banks 14069601 16698333

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Balances with other banks 3276234 3607107
17345835 20305440

Graphical representation of ratio

Return on Operating Assets

2011 1.71

Return on Operating
Assets

-23.22 2010

-30 -20 -10 0 10

Interpretation:

This ratio measure the return on operating assets means the assets which are used in
operations. The banks return on operating asset ratio for the year 2010 is (23.22) %
which is not good but it increases in 2011.

Gross profit Ratio= Gross Profit/ Net Sales *100

(Rupees in ‘000’)
Year 2010 Year 2011

= (581467)/18220175 *100 =(388260)/20685011 *100

=(0.0319) *100 =(0.0187) *100
=(3.19)% =(1.87)%

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Graphical representation of ratio

Interpretation:

Gross profit ratio shows efficiency, how much amount bank is generating after meeting
the cost of good sold expense and financial charges, this ratio measures the bank, the
bank gross profit ratio in 2010 is (3.19)% and in 2011 (1.87) %.

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c) Activity Ratios:

 Fixed assets turnover

 Total assets turnover

Fixed assets turnover= Net Sales/ Fixed Assets

(Rupees in ‘000’)
Year 2010 Year 2011

=18220175 /3534660 =20685011/3597483

=5.15 times =5.74 times

Graphical representation of ratio

Fixed Assets Turnover

2011 5.74

Fixed Assets Turnover

2010 5.15

4.8 5 5.2 5.4 5.6 5.8

Interpretation:

This ratio indicate the how bank is use its fixed assets to generate revenue, this ratio
calculated by net sales dividing by fixed assets, high ratio shows that the bank has been
more effective in using the investment in fixed assets to generate revenue. The bank
fixed assets turnover ratio for 2010 is 5.74 times and in 2011 the bank ratio is 5.15
times.

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Total assets turnover= Net Sales/ Total Assets Turnover
(Rupees in ‘000’)
Year 2010 Year 2011

= 18220175/229190273 =20685011/280997531
=0.079 times =0.073 times

Graphical representation of ratio

Total Assets Turnover

2011 0.073

Total Assets Turnover

2010 0.079

0.07 0.072 0.074 0.076 0.078 0.08

Interpretation:

Total Asset turnover ratio measures the efficiency of a bank use of its assets in
generating sales revenue, this ratio is important for any organization because it tells
how assets are used to produce revenue, the bank ratio of total assets turnover ratio for
2010 is 0.079 times and in 2008 the bank total assets turnover ratio is 0.073 times.

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Market ratios:
 Earning per share

Earning per share= Net income/ Number of Share Outstanding

Year 2010 Year 2011

= (4029277)/528797376*100 =347973/528797376*100
=(7.62) =0.66

Graphical representation of ratio

Interpretation

This ratio is calculated by net profit dividing by number of share outstanding, this ratio is
important for every organization because Earnings per share (EPS) ratio shows or
indicate company's profitability. Earnings per share (EPS) ratio of bank for 2010 is Rs.
(7.62) per share and in 2011 is Rs.0.66 per share This is a good sign for banK

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d) Leverage Ratios

 Times Interest Earned

 Debt Ratio
 Debt / Equity Ratio
 Total Capitalization Ratio

Total capitalization ratio= Long term debt/ (Long term debt + Equity)
(Rupees in ‘000’)
Year 2010 Year 2011

= 98081262 /101749732 =108368775 /378593716

=0.96 times =0.28 times

Working #1: Long term debt Year 2010 Year 2011

(Rupees in ‘000’)

Total Liabilities 225521803 270224941

Current Liabilities (127440541) (161856166)
98081262 108368775

Working#2: Long term debt + equity Year 2010 Year 2010

(Rupees in ‘000’)

Long term debt 98081262 108368775

Equity 3668470 270224941
101749732 378593716

Graphical representation of ratio

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Interpretation:

Total capitalization ratio tells the debt structure of the bank, this ratio measure the
percentage of bank total assets which are financed through debt. The ratio of bank for
2010 is 0.96 times and in 2008 this ratio is 0.28 times.

Debt/ Equity Ratio= Debt/ Equity

(Rupees in ‘000’)
Year 2010 Year 2011

=101749732 /3668470 =108368775/10772590

=27.73 times =10.05 times

Graphical representation of ratio

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Interpretation:

This ratio shows is relationship between debt and equity (This ratio tells about capital
structure), this ratio measures the bank financial leverage. Lower the ratio is better for
bank, the debt/equity ratio of bank for 2010 is 27.73 times and in 2011 this ratio is a
decrease which is 10.05. The debt portion of bank is increasing as compared to its
equity.

Debt Ratio= Total Liabilities/ Total Assets

(Rupees in ‘000’)
Year 2010 Year 2011

=225521803 /229190273 =270224941 /280997531

=0.09839 *100 =0.9616 *100
=98.39% =96.16 %

Graphical representation of ratio

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 Debt Ratio

2011 91.16

Debt Ratio

2010 98.39

86 88 90 92 94 96 98 100

Interpretation:

This ratio tells what percentage of the debt of bank has relative to its assets. This ratio
gives the idea leverage of bank, debt ratio of greater than 1 show that bank has more
debt than assets; on the other hand, debt ratio is less than 1 indicates that bank has
more assets than debt. The debt ratio of bank for 2010 is 0.98 and in 2011 is 0.91. In
this ratio fluctuation is there because in there is increase in total assets as compared to
total debt.

Time interest earned= Earning before interest and tax/ Financial Charges
(Rupees in ‘000’)
Year 2010 Year 2011

= 12615246/18801642 =21596018/21073271
=0.67 times =1.02 times

Year 2010 Year 2011

(Rs. in ‘000’)
Working #1: Earning before interest and tax
Profit before taxation (6186396) 522747
Mark-up/ return/ interest expense 18801642 21073271
Earning before interest and tax 12615246 21596018

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Graphical representation of ratio

Time Interest Earned Ratio

2011 1.02

Time Interest Earned

Ratio

2010 0.67

0 0.5 1 1.5

Interpretation:

Time interest earned ratio measures the bank ability to meet its debt obligation. Failing
of meet these debt obligations can be harm for bank because bank goes to bankruptcy.
In the BOP bank ratio analysis the time earned ratio in year 2010 is 0.67 times and in
2011 is 1.02 times.

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 Graphical representation BOP

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SWOT ANALYSIS OF THE BANK OF PUNJAB

According to my personal experience of the bank I’ve done the following SWOT
analysis of The Bank of Punjab.

Strengths of BOP

1. State of art buildings

The buildings of various branches of BOP are a state of an art in itself. Most of them are
constructed in latest style. The eye-catching scenario which these building present
attract a lot of people who visit the bank sometimes only for the sake of viewing it from
the inside; after getting highly impressed by its breathtaking exterior. And thus most of
them end up as BOP’s customers.

2. Out of the way customer orientation

One of the main strengths of BOP is their policy of implementing the highest
Degree of “Customer Orientation”. The Bank of Punjab employees make incessant
efforts to satisfy their customers in every possible imaginable way. Whenever an
existing or a potential new customer comes to BOP he/she is propose to be entertained
with drinks / tea / coffee and the employees and personnel pay their full attention to the
customer obliging him / her out of the usual way sometimes.

3. Extra services provided by BOP

The customer no matter how educated and professional maybe, but BOP offers them
all kinds of service. In BOP; the staff themselves fills customer’s deposit slips, cash
online slips, remittance form etc. and also fill and complete all requirements of account
opening forms too. In contrast the customer sits idly and enjoys himself with a nice drink
or a hot steaming cup of tea / Cold drink.

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4. No language barrier between customer and BOP employee

If a customer comes to BOP who cannot speak English or Urdu properly then BOP
employees communicate with him / her in his / her own mother tongue to make him
understand and grasp things easily and quickly in his / own home language.

5. Services provided even during lunch hours

There is a launch break from 1:30 p.m to 2:30 p.m from Monday to Thursday and 12:30
to 3:00 p.m for Friday for the employees. Most of the good customers and heavy parties
entertained while during the launch hours.

6. Longest working hours for customers

BOP offers maximum no. of hours to customers for rendering those services. The
duration of customer services of BOP is from 9am to 6pm. No other bank allows
customer services for such long hours. Conventionally most of the banks of Pakistan
offer their services to the customers from 9am to 4:30pm.

7. Capable Work Force

The bank of Punjab have efficient and effective workforce. That is able to do work at
each position right from Cash officer to remittance Incharge, online, clearing, foreign
exchange etc. Job rotation takes place within each branch periodically.

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Weaknesses
There seems to be almost no weaknesses in the organization structure and the way it is
conducting its operations. It seems almost perfect but a few weaknesses do exhibit
themselves from time to time which I found in the Garhi shahu Branch. These are listed
below.

1. Weak Human Resource Management

The HR management of The Bank of Punjab is weak as employees are not given much
rewards and benefits. The working hours of BOP employees is from 9am to 6pm and
they even stretch sometimes to 8pm but they are not paid accordingly. Employees’
salary doesn’t justify their long tedious working hours and the efforts they put to make
BOP the most successful commercial bank in Pakistan.

2. Late promotions of employees

In BOP, employees are given very late promotions. Mostly promotion is judged on the
variables of extremely good PR, the maximum no. of accounts employees have been
able to introduce into the bank, whether the employee has been able to meet his
projected targeted deposits into the bank. This attitude discourages the employees to a
great extent and search for brighter prospects in the future.

3. Non- flexible increment pay scale

The increment scale in BOP is very non-flexible. Employees’ salary is seldom raised
even if they accomplish something really outstanding for the bank.

4. Employees not at all facilitated properly

First of all there is single female at BOP M.M Tower branch at this time. The male and
female employees of BOP are not very much facilitated in the bank. I have my own
personal experience at BOP. In this particular branch there is no separate washroom for
the females which increases their worries and piles up their tensions. Furthermore there

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is no separate dinning room for females, even for males during lunch hours almost all
male staff launch at their working seats.

5. No risk allowance

Cash handling is the most important and sensitive job in banking. In this regard there is
no special risk allowance for cash officer handling cash preparing daily except his/her
Monthly pay.
This is discouraging the employees because other banks like bank Alflah and MCB
paying Rs. 5,000/= monthly allowance known as risk allowance.

6. No Separate customer Service Section

The basic and foremost purpose of customer services officer is to provide information to
any existing or potential new customer regarding account opening process, types of
accounts offered in BOP, credit information or information concerning various products
and services offered by BOP.
But there is no separate customer Service section found in BOP. No one responsible for
customer information to any existing or potential new customer. Only customer
entertains generally. No special intention given to customers.

8. No formal gifts and souvenirs to customers from time to time

The Bank of Punjab does not send gifts to its customers whenever they make a high
profit annually or periodically. Forma gifts always depict oblige and realize the customer
that BOP is always with their respectful honorable and great customers in their delights.
In Alflah Bank formal gifts and souvenirs are always send to their loyal customers from
time to time, e.g. in Multan region boxes of mangoes are sent as gifts to the loyal
customers or customers with huge deposits at the bank along with colorful and pretty
greeting cards.

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Opportunities

1. Bringing technological breakthroughs in the banking sector of Pakistan

The bank of Punjab has numerous no. of opportunities on the avenue these days. As it
is an excellent learning organization which accepts new traditions and culture readily,
therefore it has good opportunities regarding bringing technological breakthroughs in
the banking sector of Pakistan, e.g. BOP introduced the Bank software which contains
the entire database of the bank regarding its everyday transactions and connects its
network to other banks.

2. Memorandum of understanding

Memorandum of understanding is actually a facility agreement between the individual

bodies and The Bank of Punjab. The Bank of Punjab acts on the behalf of the
organizations to who with agreement is to be made.
Recently The Bank of Punjab made agreement with “Honda Atlas”. The descriptions of
the agreement are, The Bank of Punjab provide Motor Bike loan scheme with easy
installments and complete descriptions and specifications for getting loan, and
information about terms and conditions applicable.
These kinds of Memorandum of understanding are beneficial for bank of Punjab in
terms of clients and customers. For example a customer who comes with intention of
getting loan or information, he might be impressed with The Bank of Punjab personal
services or products. He might starting transactions with BOP or might become a
regular customer.

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Threats

1. Rapid growth of other commercial banks of Pakistan

The major threat BOP faces is from other banks like UBL which has recently merges
with Standard Chartered (a multinational bank) of Pakistan. It has adapted new trends
and techniques from the Western nation. UBL is developing vastly and is a constant
threat to BOP and moreover BAL’s is also alarming threat because it is totally customer
oriented bank.

2. Pakistan’s unstable economy Pakistan’s unstable economy is also a constant

threat to BOP. The recent incidents e.g., LAL Masjid In Islamabad. Chief Justice issue.
killing of Pakistani rebel Akbar Bugti in Balochistan and murder of Benazir Bhotto,
Province has aroused a massive callousness in Pakistan and in a matter of days
Pakistan’s major cities have been victimized by sheer acts of terrorism and this
contributes a lot in the declining of Pakistan’s already dwindling economy.

3. Ever increasing Inflation

Inflation is increasing day by day in Pakistan and hence is a major threat to the banking
industry of Pakistan.

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 CONCLUSION

THE BANK OF PUNJAB views specialization and service excellence as the cornerstone
of its strategy. The people of bank innovation, creativity, reliability, customized services
and their execution are the key ingredients for their future growth. Based on this
approach, their Treasury Division and the Structured Finance Unit have been geared to
provide specialized services to the corporate customers. Revenues from these activities
have started yielding dividends and they expect significant growth in these areas in the
coming years. While building on their in-depth familiarity with their customers’ needs
and anticipated developments in the banking industry, the Retail and Corporate areas of
their operations will continue to provide a strong and stable base to the business of the
Bank.

They are aware that they have stepped into the 21 st century and they must meet its
challenges by acquiring the highest levels of Technology. They will thus be accelerating
their enable them distribute their products and services through most efficient and high-
tech means. They say that they will invest in the modern tools and substantial allocation
of resources will be made to achieve this objective during the current year. Their
programme to launch real time – on line Banking Services and introduction of ATMs at
strategic locations (point of sale) have been firmed up and it will be fully operational
during the year 2011.

Their focus would be to constantly seek out growth opportunities through increased
quality assets and by offering a wider range of products and services to their esteemed
customers. There are significant growth opportunities for THE BANK OF PUNJAB and
they are confident in their ability to grasp them. They are committed to enhancing the
shareholder’s value and look forward with greater optimism to a prosperous future for
THE BANK OF PUNJAB.

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 RECOMMENDATIONS FOR IMPROVEMENT
As bank is financial institution and need customer attraction and customer retention due
to the competitive environment so the bankers already watch out their customers
requirements and try their best to fulfill them.

But as an internee my recommendations are as follows

 The Bank of Punjab provides loan to the customers for agriculture sector in the
Agri finance for different field as poultry farming, dairy farming and for crops.
They make loans by pledging

 Land and other reserves. But a person who has not land of their requirement
can’t take loans, so they should design such policies so that the small farmer can
take loans.

 If any customer has complaint towards the Bank, there is not any complaints cell
for solving the customer’s problem. So there should complaints cell in every
branch.

 Bank should design schemes for student loan on easy requirements.

 As the Bank of Punjab has less staff than other banks and facing many problems
due to this reason so The Bank of Punjab should hire competent staff.

 Bank of Punjab Garhi shahu Branch has not proper marketing department so
there should be a proper marketing department for the advertisement of bank
products and services.

 The bank should control its expenses to maintain its profitability as in previous
years.

 I suggest that bank should open account with free cost deposits, like current
account and basic banking account, to increase profitability.

 The bank should also control its debt. Also need to improvement in bank
software which is sonaware.net, sometimes its break down its link, working going

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 to slow, with this bad impression from customers, The Bank of Punjab must take
it serious and must upgrade or change this software.

 The Bank of Punjab should improve there ATM network, because sometimes the
bank ATM network down and lots of customer can’t take this bank service and
complaint to branch officer, so should improve there ATM network and provide
this facility to all cities.

 They must write the bank break timing in BOLD letters in front of branch’s main
entrance.(Including Friday)

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NEW KNOWLEDGE ACQUIRED
During my stay in the customer services position I learned the following new things.

 How to fill deposit slips

 How to fill remittance form includes DD (Demand Draft), PO (Pay Order), CD
(Call Deposit), Mail Transfer,
 How to fill cheque
 Complete process of ACCOUNT OPENING
 How to issue of cheque book How to make payment of foreign remittance
 How to post vouchers
 How to authenticate the transaction which already posted
 How to locate signature cards for signature verification
 How to make entry for Cash deposit and cash withdraw
 How to prepare cash received and payment voucher sheet
 How to use volt
 How to issue and operate lockers
 Home remittances
.
o Aftab currency exchange
o Western union
o Easy paisa
 Habib express browser
 Lulu international Exchange
 Dex international
o UAE express payments

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REFERENCES

 The basic source of data is the “Time “that I have spent there. During this short
tenure I learned a lot from many “People
 All these people were at experts in their fields. Therefore they were another
strong source of data collection.
 They were Teachers, officers, Managers, Assistants, Line staff even an office
boy or girl at light inspection.
 Book I Consulted
Financial Management (Gitman)
 Internet websites I consulted most
 www.bop.com.pk
 www.sbp.com.pk
 www.ibp.org.pk
 www.google.com

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