Internship report on:

Taqwa Islamic bank

Submitted To:
MAM AISHA IMTIAZ (G.C.W.U FSD)

Submitted By:

USHNA
ROLL # 15
M.COM (4th Semester)

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Acknowledgement
First of all a great thanks to Almighty Allah, Who enable me to complete this task and then I am
thankful to my Respected Teachers Especially our department in charge (Mam. AISHA
IMTIAZ) for providing such a friendly atmosphere and guideline during our four year stay at the
College not only for the Academic Affairs but all other social and future prospective by sharing
their remarkable experiences.

It was such a pleasant Experience to Work in THE BOP TAQWA Islamic Bank I own my
gratitude and thankful to all those who helped me in preparing this internship Report by sharing
their best of knowledge.
It Is due to end less efforts of my friends and fellow members at THE BANK OF PUNJAB who
provided me every favor and the last but not the least I am really very thankful to my beloved
parents who have always been a source of inspection for me.

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Table of Contents

Introduction/Back Ground Company staff------------------------------------------------------1-20

Hierarchy view of bank--------------------------------------------------------------------------21-25

Product’s Introduction discuss in Detail----------------------------------------------------26-45

Own Work Practical work done by student in any specific Department ---------------46-47

SWOT analysis---------------------------------------------------------------------------------48-53

Financial statement analysis----------------------------------------------------------------54-70

Conclusion and Suggestions----------------------------------------------------------------71-85

Vision and Mission Statement etc------------------------------------------------------86-101

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CHAPTER # 01

Introduction of bank

1.1 Evolution of Banking:

It has not so remote has been decided as to how the word “Bank” originated .some authors
opine that this word is derived from the word “Baucus” or “Basque” which means a bench. The
explanation of this origin is attributed to the fact that the Jews in Lombardy transected the
business of money exchange on benches in the market-place; and when the business failed, the
Baucus was destroyed by the people. Incidentally the word “Bankrupt” is said to have been
evolved from this practice. The opponents of this opinion argue that if it was so, than how is it
that the Italian money-changers were never called Bunchier” in this middle age?

Other authorities hold the opinion that the word “Bank” is derived from the Germen word
“Baku” which means ‘join stock fund’. Later on, when the Germen occupied major part of Italy,
the word “Baku” was Italianized into “Bank”

1.1.1 Modern banking:

In the face of the classical basis, banking in its modern form and formation started in Britain
when many of the Lombardy merchants came to England in the 14 th century and settled in the
part of the city of London knows called Lombard Street. These Lombard’s where so resourceful
that even the kings had to depend on them for loans.

By that time maritime transport picked up fast and it provided further expansions to trade to and
from London. The Lombard’s responded to the needs of this expansion and develops the most
important banking facility.

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The business of changing money was so lucrative that King Edward 3 of Great Britain
established the office of Royal Exchanger for changing foreign money at a profit for the benefit
of the Crown.

The discovery of America brought riches to Britain and gave a tremendous boost to foreign
trade. The merchants began to hold part of their riches in cash. These transactions, however,
received a big setback in the year 1640.

Over a period of time, these goldsmiths discovered that large sums of money were left in their
custody for long period, then they these idle money to gives the peoples as a loans and received
interest for a fix period of time and generate more money and after that they also started to give a
profit to the customers on deposit for the purpose of encouragement.

1.1.2 Banking in Pakistan:

Banking in Pakistan first officially started out in Pakistan throughout the length of British
colonialism within the south Asia. After independence from British raj in 1947, and the
emergence of Pakistan as a rustic in the globe, the scope of banking in Pakistan has been
growing and increasing continuously. Pakistan’s oldest bank is the state bank of Pakistan, which
is also the valuable bank of the nation. Before independence on august 14, 1947, the reserve
bank of India became the valuable bank of what's now Pakistan. After independence,
Muhammad Ali Jinnah took movements to establish a critical financial institution in Pakistan
which resulted inside the new founding of the kingdom bank of Pakistan, with its headquarters to
be based totally in Karachi. Simplest 7% of the population uses the banks, has important ability,
however this needs to be driven a little further.

1.1.3 Types of banks

Primilary all banks collect temporarily idle money for the purpose of lending to others

and funding in which deliver acquire in the shape of return, profit and dividend etc. however,
due to the verity of resources’ of money and the diversity lending and funding operations,
banks have been placed in a variety of categories, such as

 COMMERECIAL BANKS:

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 • SAVINGS BANKS:

• MORTAGE BANKS:

• CONSUMER BANKS:

• INVESTMENT BANKS:

• DEVELOPMENT BANKS:

• COOPRATIVE BANKS:

• RIBA FREE (Islamic) BANKS:

1.2 THE STATE BANK OF PAKISTAN

1.2.1 INTRODUCTION

The state bank of Pakistan was found by Zahid Husain. Zahid Husain was the first Governor of
state bank of Pakistan. He was also a close adviser of the founder of Pakistan, Qaid-e-azam
Muhammad Ali Jinnah, and was involved in setting up the separate financial system for the
hatchling state of Pakistan. He is also serving as a first high Commissioner (diplomat) from
Pakistan to India. He was also the first chairmen of the planning commission and also wrote the
first 5years plan of Pakistan. And he was died in 1957.

The State bank of Pakistan was established on 1st JULY 1948 under the order of state bank of
Pakistan 1948. It is the Central bank of Pakistan. It remain unchanged waiting January 1 st 1974,
when the bank was nationalized, the scope of its functions was significantly enlarged.

1.2.2 BANKING

The State Bank of Pakistan appears into many stages of banking to deal with adjustments in

the economic climate and specific buying and buying powers. Here are some of the banking
areas that the financial institution looks into:

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  State Bank’s Shariah Board approves essentials and model agreements for Islamic modes
of financing.
 Procedure for submitting claims with SBP in respect of unclaimed deposit
surrendered via banks/DFIs.
 Banking sector supervise in Pakistan
 Micro finance
 Small and Medium Enterprise (SME)
 Minimum capital requirement for banks
 Remittances facilities in Pakistan
 Opening of foreign currency account with banks in Pakistan under new scheme
 Guideline on risk management
 Guideline on securitization
 Guideline in commercial papers
 SBP Scheme for agricultural financing

1.2.3 VISION & MISSION

Our vision is to enhance the SBP BSC (Bank) into a strong and dynamic institution, geared up
with an efficient and expert human resource base, having the requisite technological know-
how and absolutely successful of imparting satisfactory service to stakeholders, while
complementing the State Bank of Pakistan in reaching its objectives to
provide dependable banking services to Government, monetary institutions, public and to act as
an operational arm of State Bank of Pakistan.

1.2.4 Functions:

There are numerous functions of SBP:

• Bank of issue

• Bankers to the Government

• Adviser and agent to the Government

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 • Bankers bank

• Controller of credit and bank rate

• Exchange control

1.3 Nationalization of banks:

Nationalization refers to when a government takes manage of an organization or industry which

generally takes place without compensation for the loss of the internet worth of sized
property and conceivable income. The action may also be the result of a nation’s attempt to
consolidate power, resentment of overseas ownership of industries representing
giant significance to neighborhood economies or to prop up failing industries. The Government
of Pakistan nationalized all the Pakistani banks on June, 1974. The
ownership, administration and control of these banks stood transferred to and vested in the
Federal Government. The shareholders had been compensated by means of 15 years Federal
Government bonds. By December 31, 1973, there had been 14 scheduled Pakistani commercial
banks with 3323 offices all over the United States and 74 offices in foreign countries. In spite of
this exceptional growth and improvement of business banks and their distinguished role of
financing in the country’s economy, it was felt that these banks failed to make sure that the
resources flow in those sectors of economic system where they would produced items and
services wished badly by a very massive range of human beings in Pakistan. Therefore the
nationalization of banks used to be considered necessary. On January 01, 1974, Pakistani
Banks had been nationalized beneath the bank (Nationalization) Act, 1974.

1.3.1 Objectives:

• To grant the fair distribution of credit. All the area of financial system will revel

in the credit score facility.

• The inspire and stimulate the advantageous nationalization of savings in the country.

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 • To provide social justice in the use by using suited allocation
of savings and monetary sources to one of a kind lessons of the society.

• To enable the Government to use the capital focused in the arms of a

few wealthy bankers for the repaid monetary development of the us of a and
the extra urgent social welfare projects.

• To co-ordinate the banking policy in a number of areas

of viable joint undertaking except doing away with wholesome opposition among banks.

1.3.2 Reason for Nationalization of Commercial Banks:

There are various reasons of Nationalization of banks that is given below:

1. Control of massive resources
2. Attention to precedence sector
3. Development of backward areas
4. Efficiency argument
5. Profitability
6. Uniform banking policy
7. Mobilization of financial savings and prevention of money lenders
8. Encouraging banking habits and creating banking habitat
9. Speedy switch of funds
10. Augmentation of Employment

1.4 Privatization in Pakistan:

The poverty expenditure charge statistically dropped to 34.5%—17.2% in 2008

as section of the privatization program. The Privatization system in Pakistan (sometimes
referred to as Denationalization program or actually the Privatization in Pakistan) was
once a coverage measure program in the financial duration of Pakistan. It was once first
conceived and applied by using the then-people-elected Prime Minister Nawaz Sharif and

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 the Pakistan Muslim League, in an strive to allow the nationalized industries in the
direction of market economy, right now after the monetary give way of the Soviet Union
in 1989–90. The software was once envisaged and versioned to improve the
GDP growth of the country wide economic system of Pakistan, and reversal of the
nationalization program in 1970s an inverse of the privatization program. In the period of
the 1970s, all major personal industries and utilities had
been put below the authorities’ possession in an intensified program, called the
nationalization program that led the economic disaster in Pakistan. Since then, the
demand for denationalization gained currency in the direction of the ending of
the government of Pakistan People’s Party in 1977, even though a commission was
once set up by way of General Zia-ul-Haq government however no denationalization
program commenced till1990.
The privatization program was launched on 22 January 1991 through Prime Minister
Nawaz Sharif in a vision to promote free-market monetary principles, private-ownership
and the mainstream purpose to appeal to foreign investment in the country. But, as
a result a true deal of the countrywide wealth fell into the hands of a quite small group of
so-called business oligarchs (tycoons), and the wealth gap elevated dramatically in
the Nineteen Nineties that halted the program by means of Benazir Bhutto. Revisions had
been made in 1999, and subsequently launched the a good deal more intensified
privatization program beneath the watchful presiding management of Prime Minister
Shaukat Aziz in 2004. Finally, the program was once ended efficiently at the end of 2007
when ~80%–90% of the industries havebeen put under the administration of non-
public ownership of businesses by Prime Minister Shaukat Aziz

1.4.1 Total Number of Schedule Banks on June 30th, 2017

• Al Baraka Bank (Pakistan) Limited.

• Allied Bank Limited.
• Askari Bank Limited.
• Bank Alfalah Limited.
• Bank Al-Habib Limited.

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• Bank Islamic Pakistan Limited.
• City Bank N.A.
• Deutsche Bank A.G.
• The Bank of Tokyo-Mitsubishi UFJ
• Dubai Islamic Bank Pakistan Limited.
• Faysal Bank Limited.
• First Women Bank Limited.
• Habib Bank Limited.
• Standard Chartered Bank (Pakistan) Limited.
• Habib Metropolitan Bank Limited.
• Industrial and Commercial Bank of China
• Industrial Development Bank of Pakistan.
• JS Bank Limited.
• MCB Bank Limited.
• MCB Islamic Bank Limited.
• Meezan Bank Limited.
• National Bank of Pakistan
• S.M.E. Bank Limited.
• Samba Bank Limited.
• Silk Bank Limited
• Sindh Bank Limited.
• Soneri Bank Limited.
• Summit Bank Limited.
• The Bank of Khyber.
• The Bank of Punjab.
• The Punjab Provincial Cooperative Bank Limited.
• United Bank Limited.

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 • Zarai Taraqiati Bank Limited.
• NIB Bank Limited. (Now merged with MCB Bank on July 7th, 2017)
Public Sector Schedule Banks
• National Bank of Pakistan
• The Bank of Punjab
• Sindh Bank
• Bank of Khyber
• First Women Bank
• zarai Taraqiati Bank Limited

Public Sector Non-Schedule Banks

• Bank of Azad Jammu & Kashmir

• Specialized Schedule banks
• Industrial Development Bank
• SME Bank
• The Punjab Provincial Cooperative Bank
• Zarai Taraqiati Bank Limited
Private Banks
• Askari Bank
• Allied Bank Limited
• MCB Bank Limited
• Bank Alfalah
• Bank Al Habib
• Faysal Bank
• HBL Pakistan
• Habib Metropolitan Bank
• JS Bank
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 • NIB Bank
• Samba Bank Limited
• Silk bank Limited
• Standard Chartered Pakistan
• Soneri Bank
• Summit Bank
• United Bank Limited
Islamic banks:
There are many Islamic banks working i Pakistan. The list of banks is given below:

• Meezan Bank Limited

• Dubai Islamic Bank
• Al Baraka Bank
• Bank Alfalah Islamic
• Bank Islami Pakistan Limited
• Askari Bank Ltd
• MCB Islamic Baking
• UBL Islamic Banking
• HBL Islamic Banking
• National Bank of Pakistan
• Bank Al Habib Islamic Banking
• Emirates Global Islamic Bank Limited
• Allied Islamic Bank
These are the names of Islamic banks having accreditation license from the kingdom financial
institution of Pakistan.

Foreign Banks
• Bank of Tokyo - Mitsubishi UFG

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 • City Bank N.A
• Industrial and Commercial Bank of China Limited
• Standard Chartered Pakistan
• Bank of China
• Samba Bank Limited
Micro-finance Banks
• FINCA Microfinance Bank Limited
• First Microfinance Bank-Pakistan
• Khushhali Bank
• NRSP Microfinance Bank
• Telenor Bank
• Apna Microfinance Bank Ltd
• Mobilink Microfinance Bank Limited
• Pak-Oman Microfinance Bank Ltd
• Sindh Microfinance Bank Ltd (SMFB)
• U Microfinance Bank Limited
Development Finance Institutions
• House Building Finance Corporation
• Pak Brunei investment Company Limited
• Pak-China Investment Company Limited
• PAIR Investment Company Limited
• Pakistan Kuwait Investment Company Limited
• Pak Libya Holding Company Limited
• Pak Oman Investment Company Limited
• Saudi Pak Industrial & Agricultural Investment Company Limited

1.5 HISTORY OF BANK OF PUNJAB

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 The Bank of Punjab is a Pakistani financial institution which is based in Lahore, Pakistan.
It serves Pakistan and features as a worldwide bank and is one of
the outstanding financial establishments of the U.S.A, preserving AA ranking from
PACRA.

The Bank of Punjab was once established through Tajammal Hussain two in 1989

and used to be given the reputation of scheduled financial institution in 1994. The Bank
of Punjab is working as a scheduled business bank with a community of almost 280
branches at all over major areas in the Punjab and community of approximately 490
branches in predominant business centers during the country. It is the
seventh biggest industrial bank of the Country
The Bank presents all types of banking services such as Deposits in Local Currency
and consumer foreign currency, remittances, and advances to business,
trade, industry and agriculture. The Bank of Punjab has certainly entresd a new era of
science to the state underneath journey and expert arms of its management. The Bank of
Punjab performs a critical function in the country wide financial
system through mobilization of hitherto untapped nearby resources advertising
savings and imparting cash for investments. The financial institution gives beautiful
quotes of profit on all deposits, opening of overseas for accounts of foreign trade
commercial enterprise for instance imports, exports and remittances,
financing, alternate and enterprise for working capital necessities and cash market
operations. The lending policy of financial institution is not solely cautious
and optimistic but additionally based on ideas of prudent lending with most emphasis on
security

First Punjab Modaraba (FPM), a entirely owned subsidiary of the bank, was set up in

1992, and is being managed by way of Punjab Modaraba Services (Pvt) Ltd

1.5.1 Board Members

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Name Relationships Type of Board Members Primary Age
(Connections) Company
Pervez Tahir 11Relationships Chairman of the Board The Bank of --
Punjab
Muhammad Zahid 11Relationships Member of Shariah Board The Bank of --
Punjab
Mohammad Khan 23Relationships Member of the Board of The Bank of --
Directors Punjab

Syed Maratib Ali 11Relationships Member of the Board of The Bank of --

Directors Punjab
Muhammad Saqib 11Relationships Member of the Board of The Bank of --
Directors Punjab
Farooq Saeed 16Relationships Member of the Board of First Punjab 38
Directors Modaraba
Saeed Anwar 11Relationships Member of the Board of The Bank of --
Directors Punjab
Umar Saif 11Relationships Member of the Board of Seen Report --
Directors Private Ltd.

Hamed Sheikh 11Relationships Member of the Board of The Bank of --

Directors Punjab

Muhammad Ahmed 11Relationships Member of Shariah Board The Bank of --

Punjab
Ejaz Samadani 29Relationships Member of Shariah Board Habib Bank
Limited

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1.6 Islamic Banking:

1.6.1 History of Islamic banking in Pakistan

Our founder quid-e-azam was very an awful lot inquisitive about the Islamic banking in our
united states. The high objective of country bank is to take away hobby machine from the
Pakistan. In 1970s Islamic banking was not famous, however at the begin of twenty century it's
miles very not unusual in all over the international. Islamic banking is account value about used
500 billion. It is growing with the ratio of eleven-15%. In line with specific researchers and least
expensive point of view hobby unfastened monetary is crucial for any United States of America.
The principle efforts have been begin in Eighties. In Pakistan the Islamic banking is well-known
at countrywide level. Country financial institution was do changes in the guidelines of banks.
However; in Pakistan there is council for the implementation process of Islamic banking. The
cause of this council is to put off hobby machine from the Pakistani financial system. On 1
January, 1981 all of the advertisements banks were take part to open hobby loose account. At
that time all of the commercials banks have been make guidelines related to Islamic laws. On
July 2, 1986 all the banks have been working at the constant fee of return.

1.6.2 Objectives of Islamic banks

The Islamic Bank has varied objectives which it strives to achieve; paramount among
them are the following:

1. It removes the restriction and difficulty on individuals and Islamic organizations by

presenting an Islamic alternative of wealth investment instead of dealing in usury.
2. To create savings awareness among individuals, guide their spending behaviors and
utilize idle capitals and invest them in economic arenas to increase their returns.
3. It directs investment and centers it on production of goods so as to prevent the over
circulation of wealth with low value of products.
4. It supplies investment finances to all projects in various sectors such as the agricultural
industry, manufacturing industry, education and Health sectors. It also eases workers to
benefit from financial banking facilities.

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 5. Giving counseling and consultancy to Islamic organization and individuals particularly
on avenues of Islamic economical investments.
6. Embarking on studies and researches with regards to economic projects through the
Islamic institute for researches and training which is under the Bank.
7. Giving loans for productive projects and organization, and facilitating interest free loans
for individuals.
8. Eradication of unemployment and poverty and fighting monopolization which are
propelled by interest based banks.

1.6.3 Investment objectives:

In conclusion, it may be said generally that, the objectives of investment in Islamic Banks are as
follows:

1- Mutual cooperation of capital and work skills in economic development.

2- The investor receives a just and balance profit that befits the work role of his capital

3- Liberation of the individual from the negative tendency, which is a characteristic of an

investor in an interest-based investment

4-Activation of development activities and economical advancement.

1.6.4 Characteristics

Islamic banks are characteristically different from conventional banks in the following main
ways: 

1. Prohibition of Interest based lending. 

2. Prohibition of speculating based trading 

3. Profit and Risk sharing models or Agency type models. 

4. All financial structures must have underlying Shariah compliant assets. 

1.6.4 Differences between Islamic & conventional banks:

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 1.7 BOP TAQWA ISLAMIC BANKING

1.7.1 Introduction

TAQWA ISLAMIC BANKING now holds sturdy function in the Islamic Financial Market with
its assorted merchandise and offerings which are each industry well matched and competitive.
Under the kind supervision of our necessary Shariah Board, TAQWA IBD is supplying Shariah
compliant solutions to its customers. We are growing. An extended and big network of built-
in on-line branches is all outfitted and prepared to serve the market need.

HISTORY:

BOP TAQWA – Islamic Banking Division, is all set with its rebranded and revived outlook
to furnish customers with distinct Shariah Compliant Banking Services in the Islamic Financial
Market. Alhamdulillah, BOP TAQWA has proved to be a successful story the place the
Pakistan’s biggest conversion undertaking was once successfully performed and resultantly
an extended network of branches unfold across Punjab, NWPF and AJK is utterly operational
and serving market. TAQWA IBD still has a lengthy way to go Foundation of success story used

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to be laid in mid 2012 with the dream to construct a market competitive Islamic Financial
Institution, the place the Pakistan’s greatest conversation venture was once a vital section of the
venture. Taqwa IBD is leading pioneer of Conversion. During 2013 – 2014 Pakistan’s greatest
conversation task used to be efficaciously finished where 24 conventional banking branches had
been correctly translated into Islamic Banking.. We are in continuous process of growth and
development. Our crew is carefully working on improvement of different Riba Free and Shariah
Compliant merchandise to serve the desires of all sectors of economy such as corporate, business
and consumer.

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 CHAPTER # 02

2.1 HARARICAL VIEW OF BOP TAQWA ISLAMIC BANK

Branch structure

Regional chief, regional

operational head

Internal audit Branch manager, Credit committee

operational manager

Customer Cash & Bills & Account Advances Consumer

deposit clearing Remitt opening financing

I.T Foreign
exchange

Non-clerical staff

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2.2 ORGANIZATION STRUCTURE OF D-GROUND BRANCH

BM

DBM DBOM

RM
CSO CO RTO

2.3 Category of services

The services in the BOP TAQWA ISLAMIC Bank are classified in different categories.

Category A:

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  President
 Executive vice president(EVP)
 Senior vice president(SVP)
 Vice president(VP)
 Assistant vice president(AVP)

Category B:

 Officer Grade I
 Officer Grade II
 Officer Grade III
 Cash officer

Category C:

 Clerical Staff

Category D:

 Non-clerical staff
 Driver
 Guards
 Gate keepers
 Tea boy

2.4 SERVICES OF EMPLOYEES OF TAQWA ISLAMIC BANK

Services Employees

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Branch manager Sir Farooq Ijaz

Deputy branch operational manager Sir M.Naeeem Aslam

Customer service officer Mam Shumaila & Sir Hamyun

Cash officer Sir Ashraf, Sir Tsawar & Sir

Khalid

Remittance transaction officer Sir Muhammad Zubair & Sir Tariq Javed

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2.5 GRADES OF EMPLOYEES of D-Ground Branch

OFFECIRS GRADES

BM AVP

DBOM VP-I

CSO OGII & OGIII

CO OG II, OGIV & OG1

RTO OGII

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CHAPTER # 03

1.8.1 Products & services:

Due to trend setting and innovative banking, the BOP TAQWA Islamic bank can provide a wide
range of products to its customers which can be compared with any foreign or national bank in
terms of quality and reliability.

There are two types of products that BOP TAQWA Islamic bank offered

1) Liability Products
2) Assets side products

Liability products:

Liability products includes,

 Basic banking account

 Current account
 Profit & loss sharing account
 Riba free certificates (term deposit)
 Taqwa assan saving account
 Taqwa assan current account

Assets side products:

Assets side products includes’

 Muarbahah financing
 Diminishing musharka financing
 Kafala (bank guarantees)
 Ijarah

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  Istisna
 Running musharaka

Services:

 Acceptance of deposits
 Granting of loans
 Transaction Foreign Exchange Service
 Remittance – Collection
 Lockers facility
 Utility Services
 ATM Cards

1.8.2 PRICE

"The quantity of money the clients pay for the product of an enterprise".
Bop affords distinctive services and products to its clients which have been mentioned in
previous segment. Pricing of merchandise manner the fee to be paid by using the customer in go
back of services provided via the financial institution. The fee paid for the services specially
consists of:

 Markup / hobby
 Financial institution charges prices
 Bank commission and so forth.

these charges and commissions are prescribed on agenda of bank charges (soc) that keeps on
converting time-to-time, and issued with the aid of the bank periodically (generally an after six
months). There was a lot of controversy regarding the price of banking groups. Some pupils
argue that the markup acquired by the financial institution is hire for capital this is used by
others. On the contrary, some name it only Riba. This however is a very debatable and touchy
issue and i would really like no longer to offer any comment on it.

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1.8.3 PROMOTION

"All activities that a company under takes to communicate and promote its products".
This is an age of competition. Numerous organizations are providing financial services to the
customer. These days everyone is facing pressure of competitors. In this world of growing
competition, the only way to survive and grow, for an organization, in the market place is the
proper marketing and promotion of its products. Same is the case with banking companies. There
is large number of foreign and local banks working in the country and it has been noticed that
they are emphasizing much on their marketing strategies. In this scenario, the key for a bank to
succeed and attract its customers is adequate promotion of its products & services. The bank can
attract and retain its customers through:

 Sales promotion

 Advertisement

 Direct marketing

 Public relation

Public Relations the most prominent and important way to attract a large number of customers is
the advertisement of bank and its products / services. Punjab Bank has adopted different
approaches for the accomplishment of this purpose .For example, formation of Punjab Bank
Lahore branch is a major step taken by BOP.

It not only provides a source of recreation to the people but it serves as a major source of
marketing for the bank. Due to Punjab Bank assistance for the construction of fountain in Liberty
Market Square, it is named as Punjab Bank Square. BOP square, for being situated in such a
business and commercial area has its unusual importance and has resulted into bank’s promotion.

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. Along with the advertisement, the bank is providing personal services to its clients with
maximum security as other banks provide. Bank also encourages the public relation policy of
marketing. Some brochures and promotional material has been printed but it is distributed mainly
through the clients who visit the branch for their day-to-day business or through the customers
who come to get information about new schemes launched by the bank.

1.8.4 PLACEMENT

"The activities a bank under takes to make products and services easily available or accessible to
the customers".

BOP TAQWA Isamic objective has been to expand its branch net work to meet client’s needs.
Bank is well positioned and geo graphically poised, to cater for increased business demands,
from its existing potential clientele. During last year under review, BOP opened many new
branches and presently it has 68 branches, spread all over the Pakistan covering major business
centers and principle cities. Bank plans to add more branches to his growing net work in the
ensuing years. The head office of BOP TAQWA Islamic bank is situated in Lahore.

Explanation of products & services

Liability products:

Liability products includes,

 Basic banking account

 Current account
 Profit & loss sharing account
 Riba free certificates (term deposit)
 Taqwa assan saving account

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  Taqwa assan current account

Basic Banking Account:

Basic Banking Account is based on the Islamic precept of Qard-e-Hasana such that the
Bank is the ’Borrower’ and the depositor is the ‘Lender’. Main purpose of introducing Basic
Banking Account is to facilitate and supply simple banking amenities to the low earnings people.

Salient points:

The salient facets of this account are as follows:

 The minimum preliminary credit score will be Rs. 1,000/-

 Account will be opened in PKR.

 The account will be non remunerative account.

 No restriction on minimal balance. In cases, where stability in
BBA stays 'nil' for a continuous six month period, such bills will be closed.

 No fee for keeping BBA.

 Free of cost ATM withdrawals from the bank's very own ATMs. In case of withdrawal

from BBA through the ATM machines of different banks, financial institution shall get
better expenses as per agenda of charges.

 Statement of Account will be issued once in a yr free of charge.

Other service costs will be applicable as per permitted time table of charges.

Current Account:

Current Accounts are based totally on the Islamic principle of Qard-e-Hasana

such that the Bank is the ’Borrower’ and the depositor is the ‘Lender’.

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Salient points:
The salient points of this account are as follows:

• The minimum preliminary deposit will be Rs. 1,000/

• Account will be opened in PKR, USD, GBP, and EURO& AED.

• The Principal amount is guaranteed.

• The account will be non remunerative account

• Unlimited deposits and withdrawals are permissible.

• Zakat deductions are now not applicable.

Other provider costs will be applicable as
per authorized schedule of charges.

Any benefits in money, sort or services over and above the Principal quantity is interpreted as

Riba except such advantages are admissible for all account holder

Barring discrimination.

Eligibility criteria:

• Individuals (18years & old)

• Sole Proprietorships

• Partnerships

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• Companies

• Clubs / Societies / Associations / Trusts

Profit & Loss Sharing Account:

The relationship between the Bank and clients protecting Savings money owed shall be

based totally on the standards of Mudaraba/Musharakah, where the Bank shall be
Mudarib and clients shall be Rabbulmal. Further, the relationship is based on unrestricted
Mudaraba arrangement.

Salient aspect:

The salient aspects of this account are as follows:

• The minimal initial deposit will be Rs. 100/- However, no initial credit

scorewould be required for opening of accounts with the aid of

i. Mustahkeen of Zakat,
ii. Students,
iii. Employees of Government or Semi Government institutions for salary and
pension purposes (including widows/children of deceased employees’ eligible for
family pension/benevolent fund grant, etc.) and other comparable types of
accounts.

• Account will be opened in PKR, USD, GBP, and EURO& AED.

Minimum stability costs are now not applicable

• Funds will be invested in Shariah Compliant Products.

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 • Profit will be calculated on day by
day product basis and disbursed on monthly basis.

• Withholding Tax and Zakat deductions are relevant as per rules.

• Other service fees will be relevant as per accepted time table of charges.

Note: In case a depositor(s) deposits in the course of a month, he shall be paid due proportionate
share in profit, based totally on daily average balance during the month. If a depositor divests at
some stage in a month, the “ad hoc profit” for the variety of days for which the stability remains
invested, all through such month, shall be paid at the earnings rate for the preceding month. 

Eligibility criteria:

• Individuals (18years & old)

• Sole Proprietorships

• Partnerships

• Companies

• Clubs / Societies / Associations / Trusts

Riba Free Certificates (term deposit):

The relationship between the Bank and customers maintaining Riba Free

Certificates shall be primarily based on the concepts of Mudaraba-tul- Musharakah the place the
Bank shall be Mudarib and customers shall be Rabbulmal. Further, the relationship is primarily
based on unrestricted Mudaraba arrangement.

Salient points:

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The salient points of this account are as follows:

• Investments can be made for three months, 6 months, 1 year, 2 years, three years, 4 years

and 5 years

• Account will be opened in PKR.

• Minimum funding required is PKR 100/-

• Profit price preferences are Monthly, quarterly, half-yearly, every year and/or at maturity.

• Monthly, quarterly, half-yearly, every year capability calendar month,

quarter, 1/2 year, 12 months end

• Profit price is made to the investor’s precise account in BOP as per phrases opted by way

of the customer

• Profit will be calculated on daily product groundwork and distribution will be made as

per phrases consumer has opted for.

• Accrual will be made on month-to-month groundwork and disbursement will be made as

per terms patron has opted for.

• Premature encashment will be made according to untimely schedule.

If extra earnings paid, will be adjusted from fundamental amount.

• Withholding Tax and Zakat deductions are relevant as per rules.

Asset Side Products:

• Murabahah Financing
• Diminishing Musharakah Financing
• Kafalah (Bank Guarantees)
• Ijarah
• Istisna

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 a) Murabahah:

Murabahah means a sale of items by a person to any other underneath an

association whereby the seller is obliged to divulge to the and the cost of goods offered
both on money basis or deferred payment basis and a margin of earnings covered in the sale fee
of items agreed to be sold. Murabahah is transacted in tangible assets only. Murabahah
shall not be transacted in admire of any debt instrument which includes receivables. Being a sale
transaction, it is vital that the commodities which are the problem of sale in a Murabahah
transaction need to exist, owned via the seller and in his physical or optimistic possession.
Therefore, it is integral that the seller must have assumed
the risks of possession before promoting the commodities to the buyer or customer. It is
a fixed price sale and normally is completed for brief term. The transaction can be used in order
to meet the working Capital necessities by means of way of purchase of goods. It can't be used to
meet overheads repayments such as agreement of utility bills or charge of salaries
or contract of quantities owed to others. Murabahah, as a mode of financing, has ended up
synonymous with facility sale of items by the Banks. As such, almost all sorts of
businesses, which includes these providing offerings (hotels & hospitals, e.g.) may be
the target for Murabahah services for their belongings or inventory.

b)DiminishingMusharakah:

Diminishing Musharakah (DM) is a structure of co-ownership in

which two or extra people share the possession of a tangible asset in an agreed percentage and
one of the co-owners undertakes to buy in periodic installments the proportionate share of
the different co-owner until the title to such tangible asset is totally transferred to
the purchasing co-owner. Diminishing Musharakah can be created solely in tangible assets. It
shall be confined to the specified Asset(s) and now not to the total organization or business.
Proportionate share of each co-owner have to be recognized and defined in terms of investment.
There will be a challenge via one of the co proprietors to

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the impact to purchase the gadgets of different co-owner at the same
time agreed charge till the entire possession of the asset is transferred to the purchasing of co-
owner.
Additionally, a venture shall be given by means of the other proprietor to the effect that he
will sell the devices owned by using him to the first co-owner in the match the latter whishes to
buy the units beforehand than the agreed schedule on such charge as may
also be mutually agreed. Also rental agreement is in region with purchaser enabling financial
institution to gather the condominium on bank’s rented share to customer.

c) Ijarah:

Ijarah refers to a transaction the place the corpus of leased assets remains in the possession of

the lesser and the Lessee is allowed to advantage from the usefulness of these assets (i.e., their
usufruct) for a consideration. Only these possessions can be leased which can be
used whilst protecting their original form, e.g., land, building, machinery, tools, crockery &
cutlery. During the whole time period of the lease, the lesser should maintain title to the assets,
and endure all dangers and rewards pertaining to ownership. However, if any damage or loss
is brought on to the leased possessions due to the fault or negligence of the Lessee,
the penalties thereof shall be borne by using the Lessee. The penalties springing up from non-
customary use of the asset except mutual agreement will additionally be borne by way of the
Lessee. The Lessee is also accountable for all risks and consequences in relation to third party
liability, springing up from or incidental to operation or use of the leased assets. The
insurance/takaful of the leased asset ideally are in the name of lesser and the fee of such
insurance/takaful borne through him. The amount of condo has to be agreed in increase in an
unambiguous manner either for the full term of the rent or for a particular duration in absolute
terms.

d) Mudaraba:

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 Mudaraba capability and arrangement in which a man or woman participates with his cash
(called Rabbulmal) and any other with his efforts (called Mudarib) for sharing in income
from investment of these money in an agreed manner. A Mudarib may also be an herbal person,
a group of persons, a prison entity or a corporate body.

The income shall be divided in strict share agreed at the time of contract and no party shall be
entitled to a predetermined amount of return or remuneration. Financial losses of the Mudaraba
shall be borne completely with the aid of the Rabbulmal; until it is proved that the Mudarib has
been responsible of fraud, negligence or willful misconduct or has acted in contravention of the
mandate. The Mudarib can make investments his cash in the commercial enterprise of the
Mudaraba with the permission of Rabbulmal. The circumstance is that in such situation, the
Rabbulmal shall not be entitled to a share of profit in excess of the ratio that his funding bears to
the complete funding of the enterprise. The loss, if any, shall be shared in share to the Capital of
the parties. The quantity of Mudaraba funding standing to the facility of Rabbulmal on
the culmination or termination of Mudaraba association shall be undertaken to be discharged by
means of the mudarib.

e) Istisna:

Istisna is a mode of sale, at an agreed price, whereby the purchaser locations and order to

manufacture, gather or construct, or Cause so to do whatever to be delivered at a future date.
Price of the items to be manufactured must be fixed in absolute and unambiguous terms. The
agreed charge may be paid in lump sum or in installments in to be counted at the same
time agreed with the aid of the parties.

Unless otherwise together agreed, any party may additionally cancel the contract unilaterally if

the seller has not incurred any direct or indirect fee in relation thereto. If goods manufactured
conform to the specs agreed between the parties, the clients cannot decline to be given them
without if there is an obvious defect in such goods. However, the settlement can stipulate that if
the shipping is now not made within the mutual agreed time period, and then the buyer can
refuse to receive the goods. The IBOP IBD (buyer in Istisna) can enter into a Parallel Istisna

Page 37
contract beside any situation or linkage with the original Istisna contract. In one of them, the
BOP IBD will be the client and in the second the seller. Each of the two contracts shall
be unbiased of the other. They can't be tied up in a manner that the rights and responsibilities of
one contract are dependent on the rights and obligations of the parallel contract.
Further, Parallel Istisna is allowed with a 3 rd party only. In Istisna transactions the consumer
shall not, earlier than taking possession (actual or constructive) of the goods promote
or switch possession in the items to any other person. If the vendor fails to deliver
the goods within the stipulated period, the rate of the commodity can be reduced through a
designated amount per day as per the agreement. Also Murabahah can be a completed as an
alternative of parallel Istisna.

Letter of Credit (LC) by Murabahah:

LC is one of the most extensively used modes of settling trade debts on an international level.

Also, it is a handy approach for obtaining short-term economic lodging from banks by the
customers. The concept of documentary letter of facility is to provide comfort and protection to
suppliers / exporters, in recognize of payment of the correct furnished to the importers, by
offering written assurance to pay the precise amount, in the unique currency, upon
conformity/acceptability of the documents / acceptability of the documents. It is pertinent to
mention that the fee is assured upon achievement of positive phrases and stipulations and
submission of favored archives underneath Uniform Customs and Practices (UCP) 600 {The
Uniform Customs and Practice for Documentary facility(UCP) is a set of policies on the issuance
and use of Letters of Facility. It affords all the necessary aspects and definition of terms used in
documentary operations in overseas trade}. The documentary letter of facility is deemed to be
irrevocable except specifically marked as “Revocable”. “Irrevocable” documentary LCs may
additionally now not be amended or cancelled besides the agreement of all the events involved.
LCs, in general have to not exceed 90 days. In Case of any exception, the facility ought
to be correctly collateralized and/or sources of retirement must be exact identified. Reference to
UCP 600 is to be made for Introduction detail on types of LC’s.

SME FINANCING:

Page 38
 Small & Medium Enterprises (SMEs) zone contributes significantly toward country
wide GDP, employment generation and export earnings. Hence, the impact of financial inclusion
of SMEs has essential implications for economic growth, competitiveness, and job creation.
The potential for this zone to make contributions to the economic development objectives of
Pakistan, in areas like creating jobs, increasing incomes, improving competitiveness, boosting
exports and fostering financial increase is the justification for a strategy of support to unleash the
sector’s potential.

LEVERAGING TECHNOLOGY TO PROMOTE SME FINANCING:

Use of technological improvements in SME banking may also pave the way for the banks
to supply their monetary services to the goal clients at a exceedingly low cost. The use
of technological know-how also reduces bank’s clients’ looking and exploring cost. Although
branchless banking, web banking and SMS alerts offerings are becoming frequent as a norm
of modern-day banking practices, science can also be used in huge banking
services like money administration (by integrating payrolls, exchange credit&
receivables), savings origination (through on line savings applications) and different services etc.
As a cutting-edge concept, economic technological know-how (FinTech) is used to
facilitate economic offerings by means of the use of technology. It aims to grant merchandise
and offerings via online and cell channels

Islamic SME Financing:

SMEs, especially small companies and suburban enterprise units, are greater

inclined to avail Shariah compliant services rather of traditional financing due
to religious factors and their perception of traditional banking. These SMEs create a sizeable
market for promoting Islamic banking products. Realizing the strength of this market, Islamic

Page 39
Banking Institutions (IBIs) have increased their commercial enterprise operations. SBP
has also assigned SME objectives to IBIs. Islamic banking division of convention banks (IBDs)
have additionally been cautioned to improve a designated Islamic
SME strategy for advertising of Islamic SME financing. The suggestion of supplying
lengthy time period refinance facility in Islamic mode has been accepted by way of SBP’s
Shariah Board and once this facility is authorized by the in a position authority of
SBP, exceptional varieties of refinance amenities (as mentioned above)
will additionally be accessible in Islamic mode which will play a section in promoting financing
to SMEs in Islamic modes. Further, Islamic SME financing is additionally a
key issue of potential building and cognizance introduction programs.

Small Enterprises:

Number of Employees Annual Sales Turnover Financing Allowed

Up to 50* Up to Rs.150 Mn Up to Rs.25 Mn

However, in cases where an entity fulfills one parameter of SE and its second parameter

falls inside the vary prescribed for medium organization (ME) or above the upper
restrict prescribed for ME, then the subject entity shall be categorized as ME or
commercial/corporate entity as the case might also be.

Medium Enterprises:

Medium Enterprise (ME) is a enterprise entity, ideally now not a

public restricted organization which meets the following parameters:

Age of Business & Experience of Min 3 years

Key Decision Maker

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 Purpose of Loan -Facility shall be availed to meet business needs only.
-Clear and precise intended fund utilization needs to
be in place from the borrower.
e-CIB Status Clean credit history for the last 12 months, no write-
off or litigation in past with any bank

Market Check

Supplier Checking Positive feedback from suppliers.

Buyer Checking Positive feedback from buyers.

General Market Check No Negative feedback.

Collateral Requirement Yes. The exact requirement will vary on case to case
basis

Financing: Purposes:

Financing is being provided to SMEs for the following purposes:

• Managing day to day commercial enterprise cash flows

• Expanding business

• Buying uncooked material, stocks

• Buying equipment and new equipment

• Trade finance

• Assuring repayments from your inland and foreign places customers through

Trade finance (import, export & guarantees)

Page 41
Pricing:

Flexible pricing (floating / constant with revision monthly/Quarterly/Half-yearly/yearly).

MODE OF PAYMENT & PAYMENT FREQUENCY:

 Long term: Monthly / Quarterly / Half-yearly

 Short term: As agreed between purchaser and the bank
 Late Payment Charity
 Charity @ 24% per annum will be acquired after due date which will be credited to
Charity account.
 SME Segments and Sectors protected by way of the Bank

The Bank of Punjab cover all sectors and SME enterprise concerns:

(Disclaimer: Facility approval is difficulty to terms and prerequisites based totally on

Bank’s danger evaluation of application).

IDENTIFICATION OF REGIONS FOR TARGETING SMES:

All plausible enterprise hubs/ Wholesale and Trade markets throughout Pakistan
fall under SME standards inclusive of however no longer restricted to the following regions.

• Karachi

• Lahore

• Gujranwala

• Faisalabad

• Multan

• Rawalpindi

• Islamabad

Page 42
Step Wise Process/Procedure of Financing:

Customer strategies the Branch and requests for deposit facility. The branch

assesses the eligibility & the enterprise necessities of the patron and recommends a suitable
financing solution along with a whole list of archives required for processing the deposit request.
Upon submission of required documentation by the client, the branch forwards the financing
request alongside with indispensable files to Head office.
Head Office evaluations the deposit request in mild of SBP PR’s, Shari hints & inner credit
risk policy of the Bank and communicates its decision to the Branch. Ahead approval of credit
score request; the HO releases the Approval advice, Facility Offer Letter, Shari’a Process Flow,
Financing Documents & list of Security Documentation in line with the Approval. The Branch
coordinates with the client for signing & acceptance of the aforementioned documentation and
submits the equal to Head Office. If the submitted files are in line with SBP PR’s
& credit approval which includes safety documentation /formalities; Head Office releases
the credit restrict and disburses cash as per the terms and conditions outlined in the Approval &
Shari’a Process Flow.

REQUIRED DOCUMENTS:

There are different documents are required in different concern’s,

1. PROPRIETORSHIP CONCERN:
2. PARTNERSHIP CONCERN:
3. PRIVATE LIMITED COMPANY:

PROPRIETORSHIP CONCERN:

• CNIC reproduction of proprietor.
• Request for savings facility on letter head.
• Basic borrower truth sheet duly signed & stamped on each page by means of proprietor.
• Sole Proprietorship Declaration.

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• Personal internet really worth assertion of Proprietor.
• Last three years economic statements signed with the aid of Proprietor.
• Company Profile.
• Latest inventory report.
• Latest growing older of receivables.
• Last six-month bank assertion with different banks.

PARTNERSHIP CONCERN:

• CNIC copy of all partners. 

• Request for deposit facility on Letter head.
• Basic borrower reality sheet duly signed & stamped on every web page with the aid
of licensed signatories.
• Personal internet well worth Statement of all partners.
• Last three years Financial Statements signed by way of licensed signatories.
• Company profile.
• Latest inventory report.
• Latest ageing of receivables.
• Last six-month financial institution assertion with other banks.

PRIVATE LIMITED COMPANY:

• CNIC copy of all directors.

• Request for savings facility on Letter head.
• Basic borrower truth sheet duly signed & stamped on every page by using
authorized signatories.

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• Board resolution.
• Form A
• Latest form 29.
• Memorandum of affiliation (MOA) & Article of association (AOA).
• Certificate of Incorporation (COI).
• Personal net well worth announcement of all directors.
• Last three years financial statements signed by means of authorized signatories.
• Company profile.
• Latest inventory report.
• Last six-month financial institution assertion with other banks

CHAPTER # 04
Own Work Practical work done by student in any specific Department

1-During my internship I have done own in issuance of cheque books. Issuance apply and daily
balance.
2- Clearing Inward and Outward
3-Daily Branch’s Vouchers segregation
4-Head office assignment assigned to Sir, Muhammad Zubair with coordination.
5-Filling of Account opening forms
6-Filling of Remittance CDR AND UNIVERSAL CHEQUE.
7-Filling of Deposit slips and cheques.

Page 45
SWOT ANALYSIS:

STRENGTH WEAKNESS

Internal

OPPORTUNITIES THREATS

External

Page 46
Definition of SWOT:

The swot evaluation is a strategic making plans device that stands for:
strengths, weaknesses, possibilities, and threats. The swot evaluation is crucial to knowledge the
various unique danger and rewards of any funding. Analyst, traders, students and professionals
or every type can use a swot analysis to categorically destroy down an undertaking or companies'
strengths, weaknesses, opportunities, and threats.

Strengths:
Internally generated long term advantage inside the enterprise. Energy offers a agency a long
term advantage over it is rivals. Examples include: super logo call or economies of scale.

Weaknesses:
A long time / fundamental business difficulty that is internally generated. A weak spot is
something that reasons problems for the underlying enterprise, which take large effort and time
to restore and are internally generated or managed. Swot examples include: useless company
culture, inefficient tax system, etc.

Opportunities:
External conditions that is useful to an employer. Swot examples encompass: natural meals's
recognition, low power prices and so on.

Threats:
Outside conditions that are harmful to a group’s performance. Swot examples consist of an
uncertain financial system, housing reforms, and a closed financial system.

Each record has a full swot analysis, which customers can edit and improve. Additionally, the
enterprise analysis and investor portfolios are a aggregate of every character organization swot

Page 47
evaluation. Essentially, wiki wealth makes use of the swot evaluation to recognize every form of
funding.

The swot analysis can be explained in detail below,

Opportunities:

1. Govt. has provided a framework regarding legislative which helped in reducing the
difficulties and time delays in recovery of defaulted loans. (Khan 1999) Although the risk
involved in doing Islamic banking transactions is very high but this framework will
considerably reduce the risks.
2. Now Islamic banks have more opportunity to do business in Pakistan because Govt. has
reduced the tax on banks from 58% to 41%. Govt. has also stopped giving licenses to
conventional banks and promoting Islamic banking in Pakistan which will help Islamic
banks gaining more market share in coming years.
3. Growing GDP rate and increase in per capita income reflects that economy of Pakistan is
improving. FDI is also increasing in Pakistan and one of the major attractive sectors for
foreign investors is financial business. Living standard of common population is increasing
and as a result consumer power has increased. An expanding economy and increase of
consuming power can act as a fueling demand for Islamic loans and investments from
consumers and companies. (Nambiar 2005)
4. Although the literacy rate of Pakistan is low but it is increasing. There are more educated
persons in the market who have brilliant ideas but don’t have the 53 sufficient investment to
start new business or study abroad for higher education. Islamic banking can give more loans
and by introducing new transactions for these young people can really enjoy more market
share and also it will help in the reducing unemployment in Pakistan.
5. Micro financing is one of the major businesses of Islamic banks and it is also the largest
sector in Pakistan in terms of potential clients. So Islamic banks have great opportunity to
invest heavily in this sector and earn profit.

Threats:

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 1. There is a relationship between political insatiability and per capita GDP growth, political
instability has adverse effects on economic growth as the long term policies are not
implemented affectively. There has been political instability in Pakistan as Governments
have been changing frequently. Every new Govt. starts with a new set of policies and old
policies are terminated often. This is a major threat for new growing Islamic banking sector
as they have to face problems in implementing long term policies.
2. Corruption and bribery has its deep roots in Pakistani business culture. The motivational
factor behind this can be a combination of economic, social and cultural factors. Our
empirical findings show that even top officials and bank executives have been found
involved in corruption cases. It has been common practice in Pakistan that some people of
influential groups and bureaucracy take loans from the banks and don’t pay back their loans.
They make their loans adjusted by using their different political links or using bribery.
3. Our empirical findings show that increase in oil and food prices in the world has caused
rise in inflation rate in Pakistan. Inflation rate rose to 7.8% in 2006-07. Although SBP is
trying to control it by tightening its monitoring policy but it is a major threat for businesses
and investors as the price of products increases and value of money decreases.
4. Our empirical findings show that there is a poor physical infrastructure in Pakistan. So
Islamic banks have to face problems in managing their business activities on remote
locations which on the other end can be a good market place for Islamic banks.
5. People of Pakistan come in the category of uncertainty avoidance group according to
Hosted. People believe on rumors without any confirmation and justification. A large
number of people in Pakistani are doubted about the Islamic banks whether these banks are
Islamic or they are just using name of Islam and doing the same thing as conventional banks.
This is a big threat to Islamic banks.

Uses of swot analysis:

The usefulness of Swot analysis is not limited to earnings-searching for agencies. Swot analysis
may be utilized in any choice-making state of affairs while a favored cease-kingdom (goal) is
defined, for examples consist of non-income corporations, governmental devices, and people.
Swot evaluation may also be utilized in pre-disaster planning and preventive disaster

Page 49
management. Swot analysis may also be used in creating a recommendation at some point of a
viability take a look at/survey

 Strategy building:
Swot analysis may be used efficiently to build organizational or personal strategy. steps vital to
execute strategy-oriented analysis contain identity of inner and external factors (the usage of the
popular 2x2 matrix), selection and evaluation of the most essential factors, and identification of
family members existing among internal and outside capabilities for instance, strong relations
between strengths and opportunities can endorse appropriate conditions within the employer and
allow the usage of an competitive method. However, robust interactions among weaknesses and
threats can be analyzed as a capability caution and recommendation for using a protecting
method.

 Matching and converting:

One manner of the use of swot is matching and changing. Matching is used to locate competitive
advantage by way of matching the strengths to possibilities. Any other tactic is to convert
weaknesses or threats into strengths or possibilities. An example of a conversion approach is to
discover new markets. if the threats or weaknesses cannot be transformed, a business enterprise
need to attempt to limit or keep away from them.

Corporate making plans:

A part of the development of strategies and plans to permit the agency to gain its goals, that
organization will use a systematic/rigorous technique known as corporate planning. Swot
alongside pest/pestle may be used as a basis for the analysis of enterprise and environmental
factors.
• set targets — defining what the agency goes to do

• Environmental scanning
• inner value determinations of the business enterprise's swot — this desires to encompass
an evaluation of the present situation as well as a portfolio of merchandise/services and an
evaluation of the product/carrier lifecycle

• Evaluation of existing strategies — this needs to determine relevance from the outcomes
of an inner/outside appraisal. This can encompass hole analysis of environmental factors

Page 50
• Strategic issues defined — key factors inside the development of a corporate plan that the
employer has to address

• increase new/revised techniques — revised analysis of strategic problems may

additionally mean the goals want to trade
• establish vital achievement factors — the fulfillment of targets and strategy
implementation

• Preparation of operational, resource, projects plans for strategy implementation

• monitoring all effects — mapping in opposition to plans, taking corrective action, which
might also imply amending goals/strategies

 In community organization:

The swot analysis has been used in network paintings as a device to become aware of nice and
bad elements within agencies, groups, and the wider society that promote or inhibit successful
implementation of social offerings and social trade efforts. It’s far used as a preliminary aid,
assessing strengths, weaknesses, opportunities, and threats in a network served by means of a
nonprofit or network employer. This organizing device is pleasant used in collaboration with
community workers and/or community participants before growing dreams and goals for a
program layout or implementing an organizing approach. the swot evaluation is a part of the
making plans for social alternate procedure and could no longer provide a strategic plan if used
by itself. after a swot evaluation is finished, a social change agency can flip the swot listing into
a chain of hints to consider before developing a strategic plan.

Strengths and weaknesses (internal factors inside a company):

• Human assets — personnel, volunteers, board participants, target population

• Bodily resources — your place, building, system

• Monetary — presents, funding businesses, other sources of earnings

• Activities and procedures — packages you run, systems you employ

• Past experiences — constructing blocks for getting to know and achievement, your
recognition in the network

Page 51
Possibilities and threats (external factors stemming from network or societal forces):

• Future developments in your field or the tradition

• The financial system — nearby, country wide, or international

• Investment resources — foundations, donors, legislatures

• Demographics — changes in the age, race, gender, subculture of those you serve or to
your region

• The physical surroundings —is your constructing in a growing a part of town? is the bus
agency cutting routes?
• Law — do new federal necessities make your job tougher...or simpler?

• Neighborhood, country wide, or global occasions

Even though the swot evaluation turned into at first designed as an organizational technique for
business and industries, it has been replicated in numerous network paintings as a tool for
identifying outside and internal help to combat internal and outside opposition.

When to apply swot analysis:

The makes use of a swot analysis by a community organization are as follows:

To arrange information, provide perception into barriers that may be gift while conducting
social alternate procedures, and pick out strengths available that can be activated to counteract
these barriers.
A swot evaluation may be used to:
• discover new solutions to troubles

• discover boundaries as a way to limit dreams/objectives

• determine on route as a way to be simplest

• monitor possibilities and obstacles for exchange

• To revise plans to quality navigate structures, communities, and groups

• As a brainstorming and recording device as a way of communication

• To decorate "credibility of interpretation" to be used in presentation to leaders or key
supporters.

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Benefits:
The swot evaluation in social paintings exercise framework is beneficial as it helps groups
determine whether or no longer an objective is obtainable and consequently permits agencies to
set plausible desires, targets, and steps to in addition the social alternate or network development
effort. it enables organizers to take visions and produce realistic and green results that effect
long-lasting alternate, and it facilitates companies accumulate meaningful information to
maximize their capability. Finishing a swot analysis is a useful system concerning the attention
of key organizational priorities, consisting of gender and cultural variety and fundraising targets.

Financial statement analysis

Financial analysis:

Financial analysis is the examination of a business from a variety of

prospective in order to fully understand the greater financial situation determine how best to
strengthen the business. A financial analysis looks at many aspects of a business from its
profitability and stability to its solvency and liquidity.

Financial statements:

A financial statement is a formal record of the financial activities of a business. Financial

statements are written records that convey the financial activities and conditions of a business.

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Financial statements are meant to present the financial information of the entity in question as
clearly and concisely as possible for the entity and for the readers.

What is financial statement?

The statements that is prepared to show the financial position of the business is known as
financial statements.

Types of financial statements:

There are four types of financial statements;

 Balance sheet
 Income statement
 Changes in equity
 Cash flow statement

Balance sheet:

A balance sheet shows the financial condition of an accounting entity as of a

particular date. Balance sheet can report upon the assets, liabilities and stockholder’s equity of a
company. This is expressed in accounting equation:

Assets = Liabilities + Stockholders Equity

Income statement:

An income statement reports on a company’s income, expenses and profit over

a period of time. These provide the information on the operation of the entity. These include
sales and expenses that is incurred by an entity during a stated period.

Statement of Changes in equity:

Page 54
 A statement of changes in equity report on the changes in equity of the company
during the stated period.

Ending equity=Begging equity +Net Income-Dividends (+or -) other changes

Cash flow statement:

The statement of cash flows details the inflow and outflow of cash during a
specified period of time. The statement of cash flows consists of three sections:

 Operating activities
 Investing activities
 financing activities

Horizontal analysis:

Horizontal analysis is comparison financial information over time typically from past year or
quarter. Horizontal analysis is performing by a company financial data from past statement such
as balance sheet, income statement. The comparison purpose is looking for variation such a
higher and lower earnings.

Formula:

Horizontal analysis = comparison year-base year/base year *100

Vertical analysis:

Page 55
 A vertical analysis is used to show the relative size of the different accounts on financial
statement.

OR

Vertical analysis is a technique of financial statement analysis in which each line item is listed as
a percentage of a base figure within the statement. Thus, line items on an income statement can
be stated as a percentage of gross sales, while line items on a balance sheet can be stated as a
percentage of total assets or liabilities, and vertical analysis of a cash flow statement shows each
cash inflow or outflow as a percentage of the total cash inflows.

Vertical analysis is a method of financial statement analysis in which each line item is listed as a
percentage of a base figure within the statement

In a vertical analysis the percentage is computed by using the following formula:

Statement of financial position

2013 2014 2015 2016 2017
ASSETS
cash balance with treasury bank 157253 869777 1201923 2302273 2543172
2
balance with other bank 19239 150225 1217344 1755658 2219672
due from financial instituation 477000 402900 500000 5100000 9857000
0
Investments 631876 162773 5629443 5512287 7628201
7
Islamic financing& relative services c 385000 159907 4547562 8936749 1177384

Page 56
 4 7
operating fix assets 31218 100407 214912 258109 288794
deferred tax assets 0 0 0 0 0
other assts 40200 125329 436476 251092 530863
total assets 1741786 850154 1374766 2411616 3484154
4 0 8 9
Liabilities
Bills payable 1422 63129 46533 227700 188315
due to financial institution 0 264 0 0 0
deposit & other account
current account 660556 325096 4709967 6126472 8215697
4
saving account 425985 391682 6477449 1468015 2395563
7 0 2
term deposit 7100 284189 957062 813678 726746
Others 12846 129835 165364 225814 51248
deposit from financial institution remunerative 0 0 0 0 62186
deposit from financial institution non 0 0 0 0 55
remunerative
due to head office 109565 275970 433058 684727 0
other liabilities 5784 28781 348040 62053 169405
total liabilities 1223258 794995 1313747 2282059 3336928
9 3 4 4
Net Assets 518528 551585 610187 1295574 1472265
Represented By
Islamic banking funds 500000 500000 500000 1000000 1000000
Reserves 0 0 0 0 1969
unappropriate profit 13095 55436 109629 230200 420873
513095 555436 609629 1230200 1422832
surplus on revaluation of assets 5433 -3851 558 65374 49433
Total liabilities & stakeholders equity 518528 551585 610187 1295574 1472265

Page 57
income statement of 5 years
Particulars 2013 2014 2015 2016 2017
profit return/earned on financial investment 82002 266747 736760 1117781 1916612
return on deposit & dues expensed 14437 81147 238396 385966 695716
Net spread earned 67567 185600 497364 731816 1220896
provision against non performing advance 0 0 0 0 62497
provision against consumer financing 0 0 0 0 0
provision for diminution in the value of 0 0 0 0 0
investment
bed debts to written off directly 0 0 0 0 0
0 0 0 0 62497
income after provision 67567 185600 497364 731816 1158399
Other Income
fee commission & Brokage income 2486 17997 28384 29761 27701
dividend income 0 0 0 0 0
income/loss from clearing in foreign curances 2377 132 -456 99 222
gain on sale& redemption of securities 0 0 0 0 0
unrealized loss/gain on revaluation of -
investment
classified as held for trading 0 0 0 0 0
other income 1276 31662 39130 23641 33317
total other income 6139 49791 67069 53391 61240

Other Expenses
Administrative expenses 60609 193050 510213 664521 1028966
other provisions/write offs/reversals 0 0 0 0 0
other charges 0 0 17 114 0
total other expenses 60609 193050 510230 664635 1028966
13095 42341 54193 120571 190673
extra ordinary/ unusual items 0 0 0 0 0
profit before taxation 13095 42341 54193 120571 190673

Page 58
Horizontal Analysis of
Balance Sheet
2013 vs. 2014 vs. 2013
2012
ASSETS change %chang change %change
e
cash balance with treasury bank 100% 854051 5431%
9
balance with other bank 100% 13986 680%
due from financial instituation 100% 355200 744%
0
Investments 100% 995861 157%
Islamic financing& relative services 100% 121407 315%
4
operating fix assets 100% 69189 221%
deferred tax assets 100% 0 0%
other assts 100% 85129 211%
total assets 100% 675975 388%
8
Liabilities
Bills payable 100% 61707 4339%
due to financial institution 100% 0 0
deposit & other account
current account 100% 259040 392%
8
saving account 100% 349084 819.40%
2
term deposit 100% 277089 3902.20
%
Others 100% 116989 910.70%
deposit from financial institution remunerative 100% 0 0.00%
deposit from financial institution non 100% 0 0.00%
remunerative
due to head office 100% 166405 151.90%
0
other liabilities 100% 22997 397.60%
total liabilities 100% 672670 549.90%
1

Page 59
Represented By
Islamic banking funds 100% 0 0.00%
Reserves 100% 0 0.00%
unappropriated profit 100% 42341 323.30%
100% 42341 8.30%
surplus on revaluation of assets 100% -1582 -29.10%
Total liabilities & stakeholders equity 100% 330570 6.40%

2015 vs. 2014 2016 vs. 2015 2017 vs. 2016

Change %chang change %change change %chan
e ge
(749584 (86.18 110035 91.55% 240899 10.46%
9) %) 0
106711 710.35 538314 44.22% 464014 26.43%
9 %
(352900 (87.59 460000 920% 475700 93.27%
0) %) 0 0
400170 245.84 (11715 (2.08%) 211591 38.39%
6 % 6) 4
294848 184.39 438918 96.52% 283709 31.75%
8 % 7 8
114505 114.04 43197 20.10% 30685 11.89%
%
0 0.00% 0 0.00% 0 0.00%
311147 248.26 (18538 (42.47%) 279771 111.42
% 4) %
524611 61.71% 103685 75.65% 107253 44.47%
6 08 81

16596 26.29% 181167 389.33% (39385) (17.30

%)
0 0.00% 0 0.00% 0 0.00%

Page 60
145900 44.88% 141650 30.07% 208922 34.10%
3 5 5
256062 65.37% 821270 126.79% 927548 63.18%
2 1 2
672873 236.77 (14338 (14.98%) (86932) (10.68
% 4) %)
35529 27.36% 60450 26.77% (17456 (77.31
6) %)
0 0.00% 0 0.00% 0 0.00%
0 0.00% 0 0.00% 0 0.00%
157088 56.92% 251669 58.11% 0 0.00%
319259 1109.27 (28598 (82.17%) 107352 173.00
% 7) %
518751 65.25% 968312 73.71% 105486 46.22%
4 1 90

0 0.00% 500000 0.00% 0 0.00%

0 0.00% 0 0.00% 0 0.00%
54193 97.76% 120571 109.98% 190673 82.83%
514184 9.76% 620571 101.79% 192632 15.66%
(3293) (85.51 64816 11615.77 (15941) (24.38
%) % %)
58602 10.62% 685387 112.32% 176691 13.64%

Assets:

 As per Horizontal Analysis, Cash and balances with treasury banks is gradually
increasing every year, that is a good sign showing bank’s strength, therefore, liquidity
risk is low.

Page 61
  Advances lending to F.I. is also fluctuating slightly if we compare 2016 figure with
FY’04 then it increases otherwise it ratio has been decreased thought out. Which is
showing that bank is avoiding heavy advances to control the debt burden.

 Operating Fixed assets are increasing with each proceeding year which is very good sign
and showing the worth of the company. More assets mean that bank has more capacity to
pay off its liabilities.

Liabilities:

 Bill payable ratio has been decreased which is showing that bank’s bill payable is
reducing that is a good sign.

 Bank’s borrowing was increased in every year. which is also a good sign as bank is
obtaining less borrowing to pay back.

 On deposits bank is returning more which is good in respect of customers but overall it is
increasing the liability of the bank.

 Other liabilities are also increasing gradually that can disturb bank’s overall worth.

horizontal analysis of income statement

2013vs2012 2014vs2013
Particulars change %change change %change
profit return/earned on financial investment 100% 184745 225.29%
return on deposit & dues expensed 100% 66710 4620.08%
Net spread earned 100% 118033 174.69%
provision against non performing advance 0% 0 0%

Page 62
provision against consumer financing 0% 0 0%
provision for diminution in the value of 0% 0 0%
investment
bed debts to written off directly 0% 0 0%
0% 0 0%
income after provision 100% 118033 174.69%
Other Income
fee commission & Brokage income 100% 15511 623.93%
dividend income 0% 0 0%
income/loss from clearing in foreign curacies 100% (2245) (94.45%)
gain on sale& redemption of securities 0% 0 0%
unrealized loss/gain on revaluation of 0% 0 0%
investment
classified as held for trading 0% 0 0%
other income 100% 30386 2381.35%
total other income 100% 43652 711%
100% 161685 219.36%
Other Expenses
Administrative expenses 100% 132441 218.52%
other provisions/write offs/reversals 0% 0 0%
other charges 100% 0 0%
total other expenses 100% 132441 219%
extra ordinary/ unusual items 0% 0 0.00%
profit before taxation 100% 29246 223%

2015vs2014 2016vs2015 2017vs2016

change %change change %chang Chang %chang
e e e
47001 176.20% 381021 51.72% 79883 71.47%
3 1

Page 63
15724 193.78% 147570 61.90% 30975 80.25%
9 0
31176 167.98% 234452 47.14% 48908 66.83%
4 0
0 0% 0 0.00% 0 0%
0 0% 0 0.00% 0 0%
0 0% 0 0.00% 0 0%
0 0% 0 0.00% 0 0%
0 0% 0 0.00% 0 0%
31176 167.98% 234452 47.14% 48908 66.83%
4 0

10387 57.72% 1377 4.85% (2060) (6.92%)

0 0% 0 0.00% 0 0
(324) (245.45% (357) (78.29% 123 124.24
) ) %
0 0.00% 0 0.00% 0 0.00%
0 0.00% 0 0.00% 0 0.00%
0 0.00% 0 0.00% 0 0.00%
7568 23.69% (15489 (39.58% 9676 40.93%
) )
17278 34.70% (13678 (20.39% 7849 14.70%
) )
32903 139.78% 220783 39.12% 43443 55.33%
2 3

31716 164.29% 154308 30.24% 36444 54.84%

3 5
0 0.00% 0 0.00% 0 0.00%
0 0.00% 97 570.59% 0 0.00%
31718 164.30% 154405 30.26% 36433 54.82%
0 1
0 0.00% 0 0.00% 0 0.00%
11852 27.99% 66378 122.48% 70102 58.14%

Page 64
Income:

 As per horizontal analysis, Markup earned against markup expense is gradually

increasing which is showing a good sign.

 Provision is also increasing gradually with each proceeding year that is going against the
bank because alternatively it will decrease the bank’s profit.

 As per horizontal analysis, total markup has been decreased which is an alarming sign for
BOP TAQWA ISLAMIC BSNK.

Expenses:

 Bank expenses are increasing with each proceeding year that is harmful for overall profit.
Main cause of increasing expenses is that BANK is increasing its branches due to that
expenses are increasing. Instead of all these, profit is disturbing. BANK should take
productive measurements to control the expenses.

 Profit before taxation is increased every year. That’s a good sign for the bank.

Page 65
vertical analysis of balance sheet
2013 2014 2015 2016 2017
ASSETS
cash balance with treasury bank 9.00% 102.30 8.74% 9.55% 7.30%
%
balance with other bank 1.10% 1.77% 8.85% 7.28% 6.37%
due from financial instituation 27.39% 47.39% 3.64% 21.15% 28.29%
Investments 36.28% 19.15% 40.95% 22.86% 21.89%
Islamic financing& relative services 56.55% 18.81% 33.08% 37.06% 33.79%
operating fix assets 1.79% 1.18% 1.56% 1.07% 0.83%
deferred tax assets 0.00% 0.00% 0.00% 0.00% 0.00%
other assts 2.31% 1.47% 3.17% 1.04% 1.52%
total assets 100.00% 100.00 100.00% 100.00 100.00%
% %
Liabilities
Bills payable 0.08% 0.74% 0.34% 0.94% 0.54%
due to financial institution 0 0.03% 0 0 0
deposit & other account
current account 37.92% 38.24% 34.26% 25.40% 23.58%
saving account 24.46% 46.07% 47.12% 60.87% 68.76%
term deposit 0.41% 3.34% 6.96% 3.37% 2.09%
Others 0.74% 1.53% 1.20% 0.94% 0.15%
deposit from financial institution remunerative 0.00% 0.00% 0.00% 0.00% 0.18%
deposit from financial institution non 0.00% 0.00% 0.00% 0.00% 0.02%
remunerative
due to head office 6.29% 3.47% 3.25% 2.84% 0.00%
other liabilities 0.33% 0.36% 2.53% 0.26% 49.00%
total liabilities 70.23% 93.51% 95.56% 94.63% 95.77%

Represented By
Islamic banking funds 28.71% 5.88% 3.64% 4.15% 2.87%
Reserves 0 0.00% 0.00% 0.00% 0.01%
unappropriate profit 0.75% 0.65% 0.80% 0.95% 1.21%
29.46% 6.53% 4.43% 5.10% 4.08%
surplus on revaluation of assets 0.31% -0.05% 0.04% 27.00% 0.14%
Total liabilities & stakeholders equity 100.00% 100.00 100% 100.00 100.00%

Page 66
 % %

Assets:

 Cash and balances with treasury banks was decreased in 2013 but in 2004 it has been
increased which is good sign and showing less risk of liquidity. But after that the
balances was again decreased with a vast different in 2014 and 2017.

 Due to head office decreased every preceding year but in 2017 it presents 0% of
amount that is due to office that show the bank’s capability and good management of
the bank.

 Investment figure showing a slightly fluctuation in each year but in 2017 it decreased
as comparing 2016 which is not showing good trend.

 Operating Fixed Assets is decreasing with each proceeding year which is not a good
sign and showing the worth of company.

Liabilities:

 Bill payable ratio has been increased which is showing that bank’s bill payable is
increased every year that not a good sign.

Page 67
  On deposits bank is returning more which is good in respect of customers but overall
it is increasing liability of the bank.

 Other liabilities are also increasing gradually which can disturb bank’s overall worth.

vertical analysis of income statement

Particulars 2013 2014 2015 2016 2017
profit return/earned on financial investment 100% 100% 100% 100% 100%
return on deposit & dues expensed 17.61% 30.42% 32.36% 34.53% 36.30%
Net spread earned 82.40% 69.58% 67.51% 65.47% 63.70%
provision against non performing advance 0 0 0 0 0
provision against consumer financing 0 0 0 0 0
provision for diminution in the value of 0 0 0 0 0
investment
bed debts to written off directly 0 0 0 0 0
0 0 0 0 0
income after provision 82.40% 69.58% 67.51% 65.47% 63.70%
Other Income
fee commission & Brokage income 3.03% 6.75% 3.85% 2.66% 1.45%
dividend income 0 0 0 0 0
income/loss from clearing in foreign curances 2.90% 0.04% 0.06% 0.01% 0.01%
gain on sale& redemption of securities 0 0 0 0 0
unrealized loss/gain on revaluation of
investment
classified as held for trading 0 0 0 0 0
other income 1.56% 11.87% 5.31% 2.11% 1.74%
total other income 7.49% 18.67% 9.10% 4.78% 3.20%
89.88% 88.25% 76.61% 70.25% 63.64%
Other Expenses
Administrative expenses 73.91% 72.37% 69.25% 59.45% 53.69%
other provisions/write offs/reversals 0 0 0 0 0
other charges 0 0 0 0 0
total other expenses 73.91% 72.37% 69.25% 59.46% 53.69%
extra ordinary/ unusual items 0.00% 0 0 0 0
profit before taxation 15.97% 15.87% 7.36% 10.79% 9.95%

Income

 Markup earned against markup expense is gradually decreasing which is showing a

negative sign.

Page 68
  Banks provide many facilities other than money lending and borrowing. Banks
receive fee, commission etc. for these services. Fee and commission income is
varying for each financial year, in financial year 2017 it slightly reduced as
comparing 2006 but it is not alarming. Bank should maintain its figure to show better
profit.

 Dividend income is decreased & increased in all financial years.

 Other income after 2014 gradually decreased but in 2017 it is more decreased in
comparing with 2014 which is showing a bad trend.

 Profit before taxation has been decreased which is an alarming sign for BANK.

Expenses:

 Administration expenses slightly decreased which is beneficent for overall profit.

 Other charges are going smooth with no aggressive change, which is favorable to
BANK.

Page 69
FINDINGS CONCLUSIONS:

AND RECOMMENDATIONS

CONCLUSION:-

With corporation of all branch members, I have been able to learn and
experience many new things related to the banking sector and the banks workings. I am able to
handle the public problems related to banking.

Finally I concluded that BOP is a good organization for a person for his long term career
workings. Overall working and environment of the bank is very comfortable and the staff is very

Page 70
helpful and respectful of each other and it still maintains a professional environment.
Management of the bank is very strong.

Employees of BOP TAQWA ISLAMIC BANK D-GROUND branch work more than their
working hours and all the working take place in a very friendly atmosphere that does not induce
pressure on the person working there. It also shows their loyalty and commitment to the
organization.

Understanding and effective management of the human resources is the most difficult challenge
faced not only by the bank but by all the organizations. Even though the people have been
sacrificed in the new organizational developments, is becoming clear that the true lasting
competitive advantage comes through human resources and how they are managed. BOP seems
to not focusing on this highly critical issue as the job satisfaction level of the employees working
at BOP, was quite low.

RECOMMENDATIONS:-

After doing a deep study and witnessing everything that goes on in

a branch, I would then like to make the recommendations that;

First of all, the management needs to overlook the major problems that the organization is
currently facing and then develop strategies to eradicate them. Some of the suggestions that I
would like to give at the end are:

CENTRALIZED STRUCTURE:-

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 Centralized structure that enables employee involvement
needs to be formed.

BETTER REWARD SYSTEM:-

Better reward system is one of the most important

requirements in order to reduce the problem of employee retention and improve
employee motivation.

CONTINUOUS TRANING OF EMPLOYEES:-

 Creation of enhanced performance appraisal system

 Implementation of enhanced marketing system
 Continuous lecture on better communication of staff with customers

MANAGEMENT OF TIME:-

There should be a good management of time for the sack of employees

i.e. offering them free break hours instead of making them work in this time as well.

ATM MACHINES MAINTAINED:-

ATM machine must be maintained properly to make it more convenient

for the customers and to decrease the load of work to the employees of the bank especially in the
salary days.

STAFF MEMBERS:-

I have observe during working that there need of more staff due to pressure
of work taqwa bank should hire more employees for better performance even any employee
when take leaves manager has no choice to his work to other employee so this situation built
high pressure.

ADVERTISING:-

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 Bank must let potential customers know that all attractions for banking exist. This is
done by advertising on television and obtaining press coverage, in conjunction with direct mail,
window displays, leaflet in branches and in appropriate other locations (such as hotels, shops,
etc) and including leaflet in statement of accounts sent to existing customers in the hope that they
will tell potential customers about the services provided by our bank.

GROWTH SCOPE FOR EMPLOYEES:-

BOP should provide greater facilities to its employees, and give them
bonuses for their hard work and promotions as well. There is a criticism on the banking
management that the salaries of the employees are decreasing in every succeeding year due to
rise of inflation. And I think this will shake the confidence and working habit of the employees.

BANKING PROFESSIONALS:-

The bank should hire banking professionals having experience in

their respective fields that will boost the performance of the company as currently BS 2 years are
produced for this field so they should be hired for enhancing the performance of company.

ATTRACT CUSTOMERS:- The banking company should offer such

policies which would attract customers which are denied by other banking in the market.

VISION & MISSION

Our vision is to enhance the SBP BSC (Bank) into a strong and dynamic institution, geared up
with an efficient and expert human resource base, having the requisite technological know-
how and absolutely successful of imparting satisfactory service to stakeholders, while
complementing the State Bank of Pakistan in reaching its objectives to
provide dependable banking services to Government, monetary institutions, public and to act as
an operational arm of State Bank of Pakistan.

1.2.4 Functions:

There are numerous functions of SBP:

• Bank of issue

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 • Bankers to the Government

• Adviser and agent to the Government

• Bankers bank

• Controller of credit and bank rate

• Exchange control

1.3 Nationalization of banks:

Nationalization refers to when a government takes manage of an organization or industry which

generally takes place without compensation for the loss of the internet worth of sized
property and conceivable income. The action may also be the result of a nation’s attempt to
consolidate power, resentment of overseas ownership of industries representing
giant significance to neighborhood economies or to prop up failing industries. The Government
of Pakistan nationalized all the Pakistani banks on June, 1974. The
ownership, administration and control of these banks stood transferred to and vested in the
Federal Government. The shareholders had been compensated by means of 15 years Federal
Government bonds. By December 31, 1973, there had been 14 scheduled Pakistani commercial
banks with 3323 offices all over the United States and 74 offices in foreign countries. In spite of
this exceptional growth and improvement of business banks and their distinguished role of
financing in the country’s economy, it was felt that these banks failed to make sure that the
resources flow in those sectors of economic system where they would produced items and
services wished badly by a very massive range of human beings in Pakistan. Therefore the
nationalization of banks used to be considered necessary. On January 01, 1974, Pakistani
Banks had been nationalized beneath the bank (Nationalization) Act, 1974.

1.3.1 Objectives:

• To grant the fair distribution of credit. All the area of financial system will revel

in the credit score facility.

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 • The inspire and stimulate the advantageous nationalization of savings in the country.

• To provide social justice in the use by using suited allocation

of savings and monetary sources to one of a kind lessons of the society.

• To enable the Government to use the capital focused in the arms of a

few wealthy bankers for the repaid monetary development of the us of a and
the extra urgent social welfare projects.

• To co-ordinate the banking policy in a number of areas

of viable joint undertaking except doing away with wholesome opposition among banks.

1.3.2 Reason for Nationalization of Commercial Banks:

There are various reasons of Nationalization of banks that is given below:

1. Control of massive resources
2. Attention to precedence sector
3. Development of backward areas
4. Efficiency argument
5. Profitability
6. Uniform banking policy
7. Mobilization of financial savings and prevention of money lenders
8. Encouraging banking habits and creating banking habitat
9. Speedy switch of funds
10. Augmentation of Employment

1.4 Privatization in Pakistan:

The poverty expenditure charge statistically dropped to 34.5%—17.2% in 2008

as section of the privatization program. The Privatization system in Pakistan (sometimes

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 referred to as Denationalization program or actually the Privatization in Pakistan) was
once a coverage measure program in the financial duration of Pakistan. It was once first
conceived and applied by using the then-people-elected Prime Minister Nawaz Sharif and
the Pakistan Muslim League, in an strive to allow the nationalized industries in the
direction of market economy, right now after the monetary give way of the Soviet Union
in 1989–90. The software was once envisaged and versioned to improve the
GDP growth of the country wide economic system of Pakistan, and reversal of the
nationalization program in 1970s an inverse of the privatization program. In the period of
the 1970s, all major personal industries and utilities had
been put below the authorities’ possession in an intensified program, called the
nationalization program that led the economic disaster in Pakistan. Since then, the
demand for denationalization gained currency in the direction of the ending of
the government of Pakistan People’s Party in 1977, even though a commission was
once set up by way of General Zia-ul-Haq government however no denationalization
program commenced till1990.
The privatization program was launched on 22 January 1991 through Prime Minister
Nawaz Sharif in a vision to promote free-market monetary principles, private-ownership
and the mainstream purpose to appeal to foreign investment in the country. But, as
a result a true deal of the countrywide wealth fell into the hands of a quite small group of
so-called business oligarchs (tycoons), and the wealth gap elevated dramatically in
the Nineteen Nineties that halted the program by means of Benazir Bhutto. Revisions had
been made in 1999, and subsequently launched the a good deal more intensified
privatization program beneath the watchful presiding management of Prime Minister
Shaukat Aziz in 2004. Finally, the program was once ended efficiently at the end of 2007
when ~80%–90% of the industries havebeen put under the administration of non-
public ownership of businesses by Prime Minister Shaukat Aziz

MISSION STATEMENT:

To exceed the expectations of our stakeholders by leveraging our relationship with the

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Government of Punjab and handing over a whole range of professional solutions with a focal
point on programmed pushed products & services in the Agriculture and Middle Tier
Markets through a prompted team.

Murabahah:

Murabahah means a sale of items by a person to any other underneath an

association whereby the seller is obliged to divulge to the and the cost of goods offered
both on money basis or deferred payment basis and a margin of earnings covered in the sale fee
of items agreed to be sold. Murabahah is transacted in tangible assets only. Murabahah
shall not be transacted in admire of any debt instrument which includes receivables. Being a sale
transaction, it is vital that the commodities which are the problem of sale in a Murabahah
transaction need to exist, owned via the seller and in his physical or optimistic possession.
Therefore, it is integral that the seller must have assumed
the risks of possession before promoting the commodities to the buyer or customer. It is
a fixed price sale and normally is completed for brief term. The transaction can be used in order
to meet the working Capital necessities by means of way of purchase of goods. It can't be used to
meet overheads repayments such as agreement of utility bills or charge of salaries
or contract of quantities owed to others. Murabahah, as a mode of financing, has ended up
synonymous with facility sale of items by the Banks. As such, almost all sorts of

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businesses, which includes these providing offerings (hotels & hospitals, e.g.) may be
the target for Murabahah services for their belongings or inventory.

b)DiminishingMusharakah:

Diminishing Musharakah (DM) is a structure of co-ownership in

which two or extra people share the possession of a tangible asset in an agreed percentage and
one of the co-owners undertakes to buy in periodic installments the proportionate share of
the different co-owner until the title to such tangible asset is totally transferred to
the purchasing co-owner. Diminishing Musharakah can be created solely in tangible assets. It
shall be confined to the specified Asset(s) and now not to the total organization or business.
Proportionate share of each co-owner have to be recognized and defined in terms of investment.
There will be a challenge via one of the co proprietors to
the impact to purchase the gadgets of different co-owner at the same
time agreed charge till the entire possession of the asset is transferred to the purchasing of co-
owner.
Additionally, a venture shall be given by means of the other proprietor to the effect that he
will sell the devices owned by using him to the first co-owner in the match the latter whishes to
buy the units beforehand than the agreed schedule on such charge as may
also be mutually agreed. Also rental agreement is in region with purchaser enabling financial
institution to gather the condominium on bank’s rented share to customer.

c) Ijarah:

Ijarah refers to a transaction the place the corpus of leased assets remains in the possession of

the lesser and the Lessee is allowed to advantage from the usefulness of these assets (i.e., their
usufruct) for a consideration. Only these possessions can be leased which can be
used whilst protecting their original form, e.g., land, building, machinery, tools, crockery &
cutlery. During the whole time period of the lease, the lesser should maintain title to the assets,
and endure all dangers and rewards pertaining to ownership. However, if any damage or loss
is brought on to the leased possessions due to the fault or negligence of the Lessee,
the penalties thereof shall be borne by using the Lessee. The penalties springing up from non-

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customary use of the asset except mutual agreement will additionally be borne by way of the
Lessee. The Lessee is also accountable for all risks and consequences in relation to third party
liability, springing up from or incidental to operation or use of the leased assets. The
insurance/takaful of the leased asset ideally are in the name of lesser and the fee of such
insurance/takaful borne through him. The amount of condo has to be agreed in increase in an
unambiguous manner either for the full term of the rent or for a particular duration in absolute
terms.

d) Mudaraba:

Mudaraba capability and arrangement in which a man or woman participates with his cash

(called Rabbulmal) and any other with his efforts (called Mudarib) for sharing in income
from investment of these money in an agreed manner. A Mudarib may also be an herbal person,
a group of persons, a prison entity or a corporate body.

The income shall be divided in strict share agreed at the time of contract and no party shall be
entitled to a predetermined amount of return or remuneration. Financial losses of the Mudaraba
shall be borne completely with the aid of the Rabbulmal; until it is proved that the Mudarib has
been responsible of fraud, negligence or willful misconduct or has acted in contravention of the
mandate. The Mudarib can make investments his cash in the commercial enterprise of the
Mudaraba with the permission of Rabbulmal. The circumstance is that in such situation, the
Rabbulmal shall not be entitled to a share of profit in excess of the ratio that his funding bears to
the complete funding of the enterprise. The loss, if any, shall be shared in share to the Capital of
the parties. The quantity of Mudaraba funding standing to the facility of Rabbulmal on
the culmination or termination of Mudaraba association shall be undertaken to be discharged by
means of the mudarib.

e) Istisna:

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 Istisna is a mode of sale, at an agreed price, whereby the purchaser locations and order to
manufacture, gather or construct, or Cause so to do whatever to be delivered at a future date.
Price of the items to be manufactured must be fixed in absolute and unambiguous terms. The
agreed charge may be paid in lump sum or in installments in to be counted at the same
time agreed with the aid of the parties.

Unless otherwise together agreed, any party may additionally cancel the contract unilaterally if

the seller has not incurred any direct or indirect fee in relation thereto. If goods manufactured
conform to the specs agreed between the parties, the clients cannot decline to be given them
without if there is an obvious defect in such goods. However, the settlement can stipulate that if
the shipping is now not made within the mutual agreed time period, and then the buyer can
refuse to receive the goods. The IBOP IBD (buyer in Istisna) can enter into a Parallel Istisna
contract beside any situation or linkage with the original Istisna contract. In one of them, the
BOP IBD will be the client and in the second the seller. Each of the two contracts shall
be unbiased of the other. They can't be tied up in a manner that the rights and responsibilities of
one contract are dependent on the rights and obligations of the parallel contract.
Further, Parallel Istisna is allowed with a 3 rd party only. In Istisna transactions the consumer
shall not, earlier than taking possession (actual or constructive) of the goods promote
or switch possession in the items to any other person. If the vendor fails to deliver
the goods within the stipulated period, the rate of the commodity can be reduced through a
designated amount per day as per the agreement. Also Murabahah can be a completed as an
alternative of parallel Istisna.

Letter of Credit (LC) by Murabahah:

LC is one of the most extensively used modes of settling trade debts on an international level.

Also, it is a handy approach for obtaining short-term economic lodging from banks by the
customers. The concept of documentary letter of facility is to provide comfort and protection to
suppliers / exporters, in recognize of payment of the correct furnished to the importers, by
offering written assurance to pay the precise amount, in the unique currency, upon
conformity/acceptability of the documents / acceptability of the documents. It is pertinent to

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 mention that the fee is assured upon achievement of positive phrases and stipulations and
submission of favored archives underneath Uniform Customs and Practices (UCP) 600 {The
Uniform Customs and Practice for Documentary facility(UCP) is a set of policies on the issuance
and use of Letters of Facility. It affords all the necessary aspects and definition of terms used in
documentary operations in overseas trade}. The documentary letter of facility is deemed to be
irrevocable except specifically marked as “Revocable”. “Irrevocable” documentary LCs may
additionally now not be amended or cancelled besides the agreement of all the events involved.
LCs, in general have to not exceed 90 days. In Case of any exception, the facility ought
to be correctly collateralized and/or sources of retirement must be exact identified. Reference to
UCP 600 is to be made for Introduction detail on types of LC’s.

Core values of bop TAQWA bank:

These are the values we celebrate:

• Our Customers:

As our first priority

• Profitability:

For the prosperity of our stakeholders that allows us to constantly invest,

improve and succeed

• Corporate Social Responsibility:

To develop the Lives of community where we operate.

• Recognition and Re ward:

For the talented and high performing employees

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• Excellence:

In everything we do

• Integrity:

In all our dealings

Respect:

For our customers and each ot

 LOCKERS

“Discuss
Very peace of mind, enjoy personalized service and operate your locker in a friendly and a
pleasant environment at The Bank of Punjab.”
It is one of the utility services that BOP provides to their customers for keeping jewelry,
important documents and other valuables. Nowadays it becomes the basic need of the customer
for the safety of their valuable things. They can put their valuables in a safe place and sleep
well.

2:Clearing department:
This department receives the cheque and other negotiable instruments drawn on local
branches of the other banks.state bank of Pakistan has a clearing house,in which cheques
and other negotiable instrument boughts,by each local banks representatives and the
mutual claims of each bank on other and offset and settlement is made by the payment of
difference.
Clearing system is helpful for the customers saving the currency,time,labour and
investments,which are collected;
1:cheques
2:Demand drafts

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 3:Telegraphic transfer
4:Mail transfer
5:Pay order
6:Dividend warrents

Clearing:
Any instrument which drawn on BOP branches or other banks in same city that’s
instrument is called clearing.A clearing and date stamp is fixed on these instruments these
are two types of clearing;
*Outward clearing
*Inward clearing

Foreign Remmittances:

In foreign remittances bank conducted contract with different company for receiving the
payment sent by foreign countries.In foreign remittances concerned company sent PIN code to
the receiver and receiver visit any bank for receiving the amount along with original
CNIC/DRIVING LICENCE or PASSPORT.In Bop most probably used companies as under.

WESTERNUNION

EXPRESSMONEY

AFTAB EXCHANGE

AFTAB EXCHANGE

HAFIZ BROTHER

LULU EXCHANGE

CONSUMER LOAN PRODUCTS

Apna Rozgar Scheme

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The Bank of Punjab shall provide financing to educated unemployed youth of Punjab who meets
eligibility criteria & other terms of scheme. The vehicles selected for the scheme are Suzuki
Bolan and Suzuki Ravi.
Eligibility Criteria:
Applicant must be an unemployed Punjab Domicile (male/female) holder domiciling in any
district of Punjab. Age between 21 to 35 years as on 31st October 2014 Qualification at least
Matric (or equivalent) Have valid driving license (Issued on or before 31st October 2014) Have
valid driving license (Issued on or before 31st October 2014) Have valid CNIC
Maximum worth of assets of the applicant (Self), Spouse, Parents & Children should not exceed
Rs.2 Million threshold. Must not be a defaulter and not have a criminal record.02 Guarantors
required. Tenure of Loan is 05 years (60 months)
Car Lease-CarGar
CARGAR is a product that assists you in leasing car on easy repayment terms. It has minimum
documentation requirement and is flexible to meet your individual needs. We at BOP committed
to providing you the best possible services.
Yes, if you are Salaried Person, Businessman and Professional maintaining salary/business
account with any bank and qualify eligibility criteria. Minimum Rs.100, 000/- Maximum Rs.7,
500,000/- Monthly Installment (s) should not exceed 50% of disposable income. Tenure of Lease
is 1-5 years.
Apna Ghar House Financing
Our Home is the center of our world, a place where we find peace. We understand your desire to
make your house truly your home. Our House Financing Product ensures this happens Apna
Ghar House Finance scheme is a long term finance facility for purchase of House/Flat
Construction of house on self-owned plot Purchase of plot & construction thereon
Renovation/Home improvement
Advance Salary Personal Loan
A need based unsecured term loan that the borrowers can avail to meet their immediate financial
needs and pay back through equal monthly installments.
Yes, if you are Salaried individual and maintaining salary account with BOP then you can avail
this facility. Minimum Rs.50, 000/- Maximum Rs.500, 000/- Monthly Installment(s) should not
exceed 40% of disposable income. Tenure of Loan is 1-3 years.

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Motorcycle Lease Scheme
“A lease facility for Salaried Individuals to purchase locally manufactured / assembled /
imported motorcycles for their personal use”
Yes, if you are Salaried individual and maintaining salary account with any bank. Minimum
Rs.20, 000/- Maximum Rs.200, 000/- Monthly Installment(s) should not exceed 50% of
disposable income. Tenure of Loan is 1-3 years.
BOP Solar
Power your home with solar energy, avail BOP‘s Revolutionary financing offer Bop becomes the
pioneer bank to financing option for customers to purchase solar power on east terms and
discounted prices.
How it works?
It’s a panel-shaped array of photovoltaic cells designed to transform solar radiant energy directly
into electric energy; installed to generate electricity for your residence premises

Page 85
GENERAL BNKING OF BOP TAQWA ISLAMIC BANK

General banking is the basics and back bone of BOP TAQWA ISLAMIC BANK it further
consists of following departments.

DEPARTMENTS OF BOP TAQWA ISLAMIC BANK

There are four departments in bop TAQWA Islamic bank.

Deposit department

Account opening department

Clearing department

Remittances department

“DEPARTMENTS WHERE MY INTERNSHIP WAS CARRIED OUT”

 Clearing department
 Remittance department

3.1 DEPOSIT DEPARTMENT

In the existing age there are few enterprise agency are carried out solely with the capital of the

owners. Funds are borrowing from specific sources and it has come to
be an imperative section of the present business enterprise. But in the case of entire banking
is based totally on it. The borrowed capital of the bank is larger than its very own capital. Banks
borrowing in the structure of deposit

The deposit is lent out to different parties. The differences between the rate at which the deposit
are borrowed and the rate at which the deposit are lent out, the difference rate are the point of
profit for bank. This is the general function that is used by the commercial banks, but the
procedure of deposit in Islamic banks is different from this.

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Islamic banks have adopted the current banking procedure, where any clash arises the Islamic
banks have devised their own tools and procedure to accomplish there banking activates. Islamic
banks do not pay the interest on deposit.

3.1.2 Nature of deposits:

• Current or demand deposit

• Saving deposit

• Short term notice deposit

3.1.2.1 Current or demand deposit:

Current or demand deposit are those deposits which is payable to

the bank on demand of the customer. When the customer presents the cheque in the bank, the
bank can issue deposit without any profit.

3.1.2.2 Saving deposit:

Saving account is an account which opend by the bank for develop the saving
habit of the customers. Saving account can built the relationship between bank and customer.

3.1.2.3 Short notice term deposit:

This is a short period term deposit. The customer/depositor can

withdraw his amount at any time by giving a notice of seven days to the bank.

3.2 ACCOUNT OPENING DEPARTMENT

The account opening departments is an important department of the bank. The jobs of this
department are following:

 Account opening

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  Account closing
 Dormant account

3.2.1 Account opening:

It is the first section that built the relation between the Bank and the customers. The bop taqwa
Islamic bank is offering two types of Account:

 Current Account
 Profit &Loss Sharing Account

There are different categories of accounts that are available by the bank as under:.

♦INDIVIDUAL account
♦Joint Account
♦Partnership Account
♦Limited Company Account
♦Clubs, Society, Association, or Trust Account
One another type of account that is offered by the BOP TAQWA BANK is Assan account that
provides the facility of account opening to lower level income persons.

 Assan Account:

The Assan Account is opened by that persons whose income is low and they
have no high medium and low risks. The limit of this account is Rs.500000.

3.2.1.1Current Account:

Current Accounts are based totally on the Islamic principle of Qard-e-Hasana

such that the Bank is the ’Borrower’ and the depositor is the ‘Lender’.

Salient points:
The salient points of this account are as follows:

• The minimum preliminary deposit will be Rs. 1,000/

• Account will be opened in PKR, USD, GBP, and EURO& AED.

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 • The Principal amount is guaranteed.

• The account will be non remunerative account

• Unlimited deposits and withdrawals are permissible.

• Zakat deductions are now not applicable.

Other provider costs will be applicable as
per authorized schedule of charges.

Any benefits in money, sort or services over and above the Principal quantity is interpreted as

Riba except such advantages are admissible for all account holder barring discrimination.

Eligibility criteria:

• Individuals (18years & old)

• Sole Proprietorships

• Partnerships

• Companies
Clubs / Societies / Associations / Trusts

3.2.1.2 Profit & Loss Sharing Account:

The relationship between the Bank and clients protecting Savings money owed shall be

based totally on the standards of Mudaraba/Musharakah, where the Bank shall be
Mudarib and clients shall be Rabbulmal. Further, the relationship is based on unrestricted
Mudaraba arrangement.

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Eligibility criteria:

• Individuals (18years & old)

• Sole Proprietorships

• Partnerships

• Companies
Clubs / Societies / Associations / Trusts

The obligatory provision for a customer, who wants to open an account in the bank, is
Introduction, which is first by the bank officers’ or any account holder of the bank. The different
categories of accounts that are available are as under:

• Individual Account

• Partnership account

• Joint account

• Limited company Account

• Club Society Association or Trust Account

• SNTD

• TDR

• Foreign currency Account

3.2.2 ACCOUNT OPENING PROCDURE:

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The general banking department performs different functions among them the first and most
important function is account opening. The process of opening an account is very simple

The person who wants to open his account is required to meet with the manager or second
officer, who gives him an application form purposely used for account opening. Along with the
following form:

3.2.3 ACCOUNT OPENING FORMS:

SPECIMEN SIGNATURE APPLICATION OF

CARD ACCOUNT OPENING
KYC (Know your customer) CHEQUE LIST

BIO MATRIX M/S FORMS

RISK SCEARING FATCA CONCENT

ATM APPLICATION CHEQUE BOOK

REQUISITION

3.2.3.1 Specimen signature card:

The specimen signature card is supplied to the customer along with application form. The
SSC card is used to matching the signature of customers at the time when he want to withdraw
his amount through checque, then the account officer can check these signs and match with the
signs of SSC card. Account opening officer have every right not to accept this contract if he\she
is not satisfied with the detail that is provided by the customer such as mismatching of signs and
mistakes in name spellings , but if the officer is satisfied, than they start further procedure of
account opening

SSC card includes:

• Branch code

• Date
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 • Title of account

• Account number

• Signature of customer

• National ID card number

The customer can fills card and return to the bank. In case of illiterate person thumb impressions
can be taken by the customer and also three passport size photographs that is attached with the
SSC card and also the signs and stamp of the account opening officer and then scans this card
and record in the system.

3.2.3.2 Application of account opening form:

Application of the account opening form is done by manually and after scanning this will be
interred into the computer record.

The application of the account opening form includes,

• Title of account

• Name of the account holder

• Id card number

• Date of birth

• Place of birth

• Address

• Father name

• Mother name

• Mobile number

• Name of the relative person (sister, brother, wife etc)

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 • Phone number

• Gender

• Occupation

• Account type such as (individual, partnership etc)

• Religion

• Country

3.2.3.4 KYC (know your customer) form:

KYC includes the data of the customer such as

• Name

• Address

• Account type

• Occupation etc.

3.2.3.5 Cheque list:

Check list is also attached with the account opening forms this form is used by the management.

3.2.3.6 BIO form:

BIO is a customer’s bio matrix form which include the personal data of the customer

This form includes:

• Id card number

• Address

• Name

• Thumb impression

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 • Father name

• Id card symbols

• Address of the customer

• Phone number

3.2.3.7 Management form:

This form is used by management of the bank.

3.2.3.8 Care risk screening:

CRSC Individual tax residency self-certification form (CRS-1) common reporting standard

The CRS form is used for the purpose of other then Pakistan. The person who want to open an
account in Pakistan and also have a nationality of Europe country such as U.K, then he pay the
tax on his U.K’s property. And also include some other Country which has not tax charged like
UAE and Saudi Arabia.

Part-1:

IDENTIFICATION OF INDIVIDUAL ACCOUNT HOLDER

Part-2:

COUNTRY OF RESIDENCE FOR TAX PURPOSE AND RELATED TAXPAYER

IDENTIFICATION NUMBER OF FUCTIONAL EQUIVELENT.

Part-3:

DECLARATION AND SIGNATURE:

• Signature

• Name

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 • Date

3.2.3.9 FATCA COSENT FORM:

(Complete by individual whose whishes to open an account)

This form is fills by the person who wants to attain duel nationality like America, and according
to American policy the person is laible to pay tax in both countries like Pakistan and America.
This form includes:

• Name

• Country of recidence

• Country of birth

• Nationality

• TIN (Tax identification number)

• Last signature

• Term and conditions of account opening form (eng+Urdu)

3.2.3.10 ATM card Application form:

This form submits for the application of ATM card by the customer along with account opening
forms.

3.2.3.11 Cheque book requisition:

This form is field for the purpose of attain the cheque book.

After completion of this account forms the account opening officer can take the signs of
operational manager and stamps and after this scanning all forms and submit to the
CAPU(centralized account processing units) and in CAPU one officer can check the forms and
the second officer can supervice the forms, if all the form include any error such as DBOM

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signature or missing any element of the form the CAPU can reject the forms otherwise the
CAPU can accept the forms and allot an account number and send back to the bank . The
management cans write down the account number on SSC (specimen signature card) with date.

3.2.4 Account closing:

The customer can close his account after submitting an application form to the bank.
The account is closed after deducting account closing charges and the reaming amount is given
to the customers. The application of closing account is filed in the account closing file. The
cheque book is return to the bank by the customer. The bank officer can cancel the remaining
cheques in the cheque book.

3.2.5 Dormate account:

When the customer does not operate his account during one year then the computer
automatically includes this account in inactive account. This is known as Dormate account. Now
the customer cannot operate his account and the bank can inform the customer that his account is
inactive.

3.2.6 Activation of Dormate account:

If the customer wants to active his dormate account, he can file an application with
N.I.C copy. Then the bank officer fills a form, which is” Account Activation form” and the bank
manager can sign and stamp on the form of Account Operate. The forms of Activation of
account can scans and send to the CAPU and CAPU can allow for operate his account, but
before operating the account, the customer can pay some charges.

Learning in account opening departments:

My learning in account opening department was following things;

 Procedure of account opening

 Filling of Forms of account opening
 Filling of SSC card

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  Filing of application of account opening form
 KYC forms
 Arrangement of forms
 Stamping of account opening forms
 Activation of Dormate account

3.3 CLEARNING DEPARTMENT

The word clearing has been derived from the word ³clear´andis described as:

A machine with the aid of which banks change cheques and other negotiable instruments drawn

on every different within a unique place and there by secure price for their consumers via the
Clearing House at specified time in an efficient way.

The bank receives cheques and other different types of negotiable instrument drawn on local
branches of other banks. The STATE BANK made clearing house for the purpose of brought
cheques and other negotiable instrument from each local bank and the mutual claims of each
bank with others is offset and settle the claims between them.

3.3.1 CLEARNING:

Clearing is a bank to bank transaction for fund transfer between two banks. The transfer
of funds from a branch of bank to the other bank on which the instrument is drawn. The SBP
can play the role of bridge between these two banks. The instrument which is drawn on bop
TAQWA Islamic bank and other banks in same city that’s instrument is called clearing.

3.3.2 Types of clearing:

There two types of clearing:

 Inward clearing
 Outward clearing

3.3.2.1 Inward clearing:

Inward clearing means the cheques received by bank from other bank. Inward clearing is payable
by the bank. The inward clearing can become the reason of decrease the deposit of the bank.

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3.3.2.2 Outward clearing:

Outwards clearing means the cheques drawn on other bank. Outward clearing is receivable by
the bank of his customers for giving the service of clearing. The outward clearing is a source of
increasing the deposit of the bank. This clearing can be local or out of city. When the customer
can brings this cheque, he fills a deposit slip. He kept the counter folio and remaining part is
stapled with the cheque. The bank officer can took the stamp of crossing and clearing stamp of
next day and endorsement stamp. In this type of clearing the bank receive the cheques of whole
day and record these cheques in outward clearing.

If the cheque is drawn on same bank or other branch of the bank then it is called clearing within
bank. Such cheques are marked with transfer bank

“WHAT I HAVE LEARNT IN BOP”

In BOP TAQWA Islamic bank, I really enjoyed working with the staff of BOP TAQWA Islamic
bank branch (0723) Faisalabad having a wish to be employee of BOP. It was almost impossible
to work in all the departments within that limited time. But the staff of the branch provided me
the opportunity to work in the different departments for the sake of knowledge. I feel highly
thankful to work in the D-Ground branch with the manager of the branch Mr.Farooq Ijaz because
I learnt a lot in that branch.

During my internship training in the TAQWA Islamic bank as I early mentioned that I have
worked in different departments & seats and learnt the following things.

 How to deal with different types of customers.

 Account opening.
 Cheque book issuance.
 Outward and inward clearing.
 Cheque for collection.
 Different forms and vouchers filling.
 Experience of working in a well reputed organization.

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 “GLOSSARY”

BOP: Bank of Punjab.

ATM: Automatic teller machine.

BBA: Basic Banking Account.

PLS: Profit and Loss Account.

TD: Term deposit.

AOF: Account Opening form.

AMO: Account maintenance officer.

KYC: Known your customer.

SSC: Specimen signature card.

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CSO: Customer services officer.

UC: Universal Cheque.

NIFT: National institute of facilitation technology.

TDR: Term Deposit Receipt.

RFC: Riba Free Certificate

IBC: Inward Bills for Collection.

OBC: Outward Bills for Collection.

HO: Head Office.

BM: Branch Manager.

BOM: Branch Operation Manager.

REFRENCES:-

 State bank of Pakistan: http://www.sbp.org.pk

Wikipedia
 Introduction: https://www.bop.com.pk/BoPVision / mission:
 Corporate information: https://www.bop.com.pk/Islamic%20Banking
 Internship activities:
 Financial statement: Google.com.pk
 Annual report of bank of Punjab.

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