Passion Reborn": " Page 1 of 98

INTERNSHIP REPORT ON
BANK OF PUNJAB
“Passion Reborn”
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Internship Report of Bank of Punjab
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Scanned Copy of Training Completion Certificate
Areas Covered by Report
The report I am submitting to my honorable teacher contains the following areas:
Introduction of the bank and the banks history along with the administration, the audit
committee, the branch banking, and the products offered by the bank. The bank in which I
performed my internship has departments division like this:
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o Treasury / Finance Department
o Foreign Trade Department
o Human Resource Department
o Consumer Banking / Operation Department
o Credit and Advances Department
o Risk Management Department
o Audit & Inspection Department
o Sales Marketing and Media Department
o Islamic Banking Department
o International Banking Divisions
Most of the department’s functions are being learned during the internship period. The report
also contains the skills and the work performed during the tenure. Ration analysis,
interpretation of the ratios, and SWOT analysis of the bank.
Table of Contents
Pages
Executive Summary 7
Acknowledgement 8
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Dedication 9
Introduction to report 9
Mission Statement/Vision Statement 12
Objectives 13
Organizational Structure/Hierarchy 14
Products/Services/ Departments 19
General Banking at BOP 37
Work Done By me 72
Ratio Analysis& Interpretation and
Financial Analysis 83
SWOT Analysis 88
Recommendations 92
Conclusion 95
Bibliography 96
Glossary 96
Annexure 97
 Executive Summary
Getting opportunities, learning and observing is always a very special thing for starting
professional career. An imaginative and farsighted person will always try to use these
opportunities to groom his/her own education, personality and attitude. As a student one is
benefited by acquiring awareness and practical knowledge for starting the professional career.
The process of learning in the well established and professional environment is very vital for
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building a career. This process of learning acts as the cornerstone to enhance career
prospects, develop the confidence in the students.
According to my internship program, I completed my six weeks internship at Bank of

Punjab, Nowshera virkan Branch disst.Gujranwala. Bank of Punjab was established in 1989
and was given the status of a scheduled bank in 1994. The bank of Punjab is listed at Lahore
and Karachi Stock Exchanges and the Bank is working as a scheduled commercial bank with
a network of almost 324 branches at all over major locations in the Punjab.Its 7 main
departments are:
 Account opening Department
 Cash Department
 Deposit Department
 Clearing Department
 Remittance Department
 Bills Department
 Account Department
All the main functions and features of these departments will be briefly highlighted in this
report in next pages. The bank’s infrastructure, policies and plans all are geared toward
promoting speedy services to all their valued customers. Bank of Punjab’s overall
performance is better as compared to other scheduled banks. The management believes that
Bank of Punjab’s main objective is service oriented. The slogan of BOP is:
“PASSION REBORN”
 2) Acknowledgement
“All praise and thanks for Almighty Allah who is entire source of knowledge and wisdom to
mankind.
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 The internship offer the opportunity for fresh graduates, masters to get practical
knowledge and analytic know how about the professional environment and to make
optimal use of the supervised on job training. Sound interaction with colleagues and
learn the art of public dealing and managing crisis in the crucial situations and polish
their skills in problem solving.
 I consider myself fortunate that I can avail this opportunity to do internship in one of
the leading Commercial bank named “Bank of Punjab, Nowshera Virkan branch
Disst. Gujranwala”. The branch is composed of highly qualified and competent
professional staff and equipped with latest technology. The staff members are
articulate, diligent, well manner and are honest to their job and working under the
dynamic supervision and guidance of innovative Branch manager Mr. Mohammad
Riaz Cheema.
 I want to mention the staff members those are encouraged, helped and support me in
completing the internship and compilation of this internship report. Without their
help, support and sincere appreciation, I would not be BOPe to complete this task.As
banks are generally very much sensitive to their secrecy, this branch has been
extraordinarily kind to let me handle their delicate operations and also assign me
some assignment and tasks.
 Throughout the tenure, the staffs were forthcoming, supportive and approachBOPe. I
feel that the experience was highly rewarding. Bank of Punjab was really ideal and
inspirational venue to understand the internship. My time at Bank has flown away
very quickly. It has been a brilliant and very informative professional experience. My
six weeks tenure at Bank of Punjab has been very rich and valuable on job work
experience. I feel confident looking towards the future professional undertaking.
 At the end, I wish to thanks all the staff members who encourage, appreciate and
support me in every moment when I need help I have made in such a short time and
also I shall always remember this short memorable training experience which flourish
our studied things at University of the Punjab Gujranwala Campus and make our
professional skills effectively.
3) Dedications
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I Dedicate This Work To My
Honorable Parents
 Who have a great source of love, affection and encouragement throughout my

academic career and their matchless sacrifices in the process of my upbringing make
me respectful to all human talk. And who are always a great source of support &
encouragement for me they would be very proud to see this report.
Honorable teacher
 Dedicated to my teachers without whom I wouldn’t be able to be the same.

 I want to thank Sir Hafiz Imran Akram for the support and dedicated assistance
throughout the session.
4) Introduction to report.
History of BOP
The Bank of Punjab was established in 1989 and was given the status of scheduled bank in
1994.The architect of the bank Mr. Nawaz Sharif then, the Chief Minister of Punjab,
performed the inauguration. Authorized capital of The Bank of Punjab is RS.50.0 Billion.
The bank of Punjab is listed at Lahore and Karachi Stock Exchanges. Fifty one percent (51%)
of the share capital is held by the Government of Punjab and the rest is owned by Pakistani
individuals/firms and foreigners. The Bank of Punjab is working as a scheduled commercial
bank with a network of almost 327 branches at all over major locations in the Punjab.
The Bank provides all types of banking services such as Deposits in Local Currency and
client foreign currency, remittances, and advances to business, trade, industry and agriculture.
The Bank of Punjab has indeed entered a new era of science to the nation under experience
and professional hands of its management.
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The Bank of Punjab plays a vital role in the national economy through mobilization of local
resources, promoting savings and providing funds for investments. The bank offers attractive
rates of profit on all deposits, opening of foreign currency accounts and handling of foreign
exchange business for example imports, exports and remittances, financing, trade and
industry for working capital requirements and money market operations. The lending policy
of bank is not only cautious and constructive but also based on principles of prudent lending
with maximum emphasis on security. As agriculture is considered as backbone of our
economy the Bank of Punjab has introduced "Kissan Dost Agriculture Finance Scheme" to
small farmers.

 BOP Nowshera Virkan Branch
An overview
The branch is almost 02 years old. I think It is one of the latest branches of bank’s being
started in the area. It has a vast customer base. There are many old customers who have
opened their accounts when the branch started its operations in the area. The supportive
environment is comparatively less hectic than foreign banks, and easy working and
approaches make the Bank of Punjab a quick choice for customers. The branch location is
good because it is located in customer focused area as it’s a market area.
Structure of the Branch

The branch has got sufficient staff to meet the needs. The staff is less and present officers got
burdened when some times more than usual customers come especially in the beginning of
every month. The request for more staff has been sent to the Regional office since 2015 but
no appropriate actions have been taken still now. If we compare it to the other banks we come
to know this staff is far less than them. There is no system administrator, only one cash
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officer and one billing officer is there which is not appropriate for such a busy branch. The
burden is accumulated on few peoples and there is no chance of relief in near future.
Designation No. of Employees

Branch Manager 1
Operation Manager(OG-l) 1
Officer Grade ll 1
Officer Grade lll 2
Cash Officer 1
Messenger 1
Gun Man 2
Peon 1
Major Customers and Markets of BOP

Almost people of every field of life are the customers at this branch. During my stay I
encountered government servants, businessmen, pensioners, house wives, zakat deserving
peoples and some walk in customers.
Some of the major customers of Bank of Punjab are:
 Educational Institutes
 Agriculturists
 Pakistan Telecommunication Private Limited
 WAPDA
 Pharmaceutical Companies
 WASA
 TMO
Market is really very dynamic and challenging. It is really tough job to survive in a locality
where 3 private and 2 other semi government banks are already operating. Every bank gives
its own attraction and gains customer’s loyalty at times through marketing activities and with
more advanced services.
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BOP still makes a difference in attracting customers with minimum deduction for special
services. A huge number of illiterate customers walk in the bank and are facilitated by the
staff, and such customers are always demand for less deduction on special facilities like Pay
order, Demand Draft, BOP online etc.
5 ) VISION AND MISSION STATEMENT
 Vision Statement
“To be a customer focused bank with service excellence.”
 Mission Statement
“To exceed the expectations of our stakeholders by leveraging our relationship with the
government of Punjab and delivering a complete range of professional solutions with a focus
on program driven products and services in the agriculture and middle tire markets through a
motivated team.”
 Core values
 Our Customer: As our first priority.
 Profitability: For the prosperity of our stakeholders that allows us to constantly invest,
improve and succeed.
 Corporate Social Responsibility: To Enrich the Lives of community where we operate
 Recognition and Reward: For the talented and high performing employees
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 Excellence: In every thing we do.
 Integrity: In all our dealings.
 Respect: For our customers and each other
Objectives
The Bank of Punjab being a commercial bank performs all those function as are attributed to
such banking institutions both in the areas of resources mobilization and investment. It is
providing funds for commerce, trade, industry, and agriculture but its main emphasis is on
accelerated development of agro-based industry. So the main objective of the bank is to
channelize the resources into sectors, which have suffered from neglect. Other objectives
included.
1. To provide speedier services to the common man.

2. To provide the highest rate of return to the shareholders by achieving good profitable
growth.
3. Ensure that its performance in all facts of its operations more than matches that of its
competitors.
4. To enter into financing contracts and to mobilize resources in local and now in foreign
currencies consistent with the objects of the bank.
5. Maintains a comprehensive range of domestic and international activities.
6. Act as a reputable efficient and responsible organization.
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6 ) Organizational Structure
Head Office:
Head Office and the main branch of BOP are in Gulberg 3 Lahore & Egerton
road Lahore Respectively.
Regional Offices
The Bank has been divided into seven regions each consists of number of branches. The
administrate control, operational control and increasing business volume is the responsibility
of the Regional chief.
1. Regional Office Lahore.
2. Regional Office Rawalpindi.
3. Regional Office Gujranwala.
4. Regional Office Faisalabad.
5. Regional Office Multan.
6. Regional Office Karachi / Quetta.
7. Regional Office Peshawar
Rests are the branches working under these regions which are almost 324 in all over Pakistan.
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Board of Directors
Name Designation
Mr. Safdar Javaid Syed Chairman

Mr. Naeemuddin Khan President
Mr. Azhar Hameed Director
Mr. Haroon Khawaja Director
Mr. Farooq Ahmed Awan Director
Mr. Naveed Masud Director
Mr. Mujtaba Jamal Chaudhry Director
Mr. Shafqat Ellahi Director
Mr. Shafqat Mahmood Director
Mr. Tariq Mahmood Pasha Director
Mr. Viqar Ahmed Khan Director
Mr. Raza Saeed Secretary To The Board

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Organizational Hierarchy
Central Management Hierarchy
CHAIRMAN
BOARD OF DIRECTORS
MANAGING DIRECTORS
DIVISIONS
BRANCHES
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Bank Management Hierarchy
BOARD OF DIRECTORS
CHAIRMAN
SENIOR EXECUTIVE VICE PRESIDENT
EXECUTIVE VICE PRESIDENT (EVP)
VICE PRESIDENT (VP)
ASSISTANT VICE PRESIDENT (AVP)
OFFICER GRADE-I (OG-1)
OFFICER GRADE-II (OG-2)
OFFICER GRADE-III (OG-3)
CASH OFFICER
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Hierarchy on the Basis of Power
Chairman
Managin
g
General
Manager
Regional
Officer
Area
Manager
Branch
Manager
Operation
Manager
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 7 ) PRODUCTS /SERVICES/ DEPARTMENTS
Deposit Products:
In modern times very few business enterprises are carried out solely with the capital of the
owners. Borrowing funds from different sources has becomes an essential feature of today
business enterprise. But in the case of an entire banking system is based on it. The borrowed
capital of the bank is much greater then their own capital. Banks borrowing is mostly in the
form of deposits.
These deposits are lent out to different parties. The larger the difference between the rate at
which the deposits are borrowed and the rate at which they is lent out the greater of the profit
margin of the bank. Furthermore, the larger the deposit the larger will be the funds available
for employment; larger the funds lent out the greater will be the profit of the bank.
 Current Account (CD):

Current account is a type of chequing account that banks offer, this account does not provide
any profit on it and neither zakat is deducted on this account. There is no limit of
transactions. There is a facility of credit also available that is running finance on current
account.
The major segments of this account are sole proprietors, partnerships, companies (both
private& public) and any other individual that wants to open their account and not earn profit
or pay zakat on their balances.
 BOP Basic Banking Account (BBA):

The minimum initial deposit will be Rs.1000. no profit will be payable. No fee (service
charges) charges for maintaining such account will be charged. There will be no limit for
maintain minimum balance. A customer with a BBA, does receives an ATM card.
In the cases, there balance in BBA remains “NIL” for a continuous 6 month period, such
accounts will be closed. The segment that this account is targeted is towards the salaried
individuals that have just started their professional careers, students or any other individual
that may want to open an account with a small amount of money.
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 BOP Tijarat Account (BTA):
In order to further facilitate the managers in targeting customers, it will be at the discretion of
the manager to offer the incentive packages from day one. The product is available for all
customers who are eligible to open current account as per bank’s criteria i.e.
1. Minimum monthly average balance from Rs. 50,000 & over.

2. Monthly account maintenance charges will be applicBOPe if account balance falls
below Rs 10,000/-
3. Inter-city/within-city On-line deposits/withdrawals charges are Rs 5/-flat
4. PO/D.D/MT charges as Rs 5/-flat
 BOP Supreme Current Account:

Foreign currency account can be opened in four currencies namely US Dollars, UK pond
sterling, Yen and Euro at any of the authorized branch.
Profit And Loss Sharing Term Accounts
BOP Pehlay Munafa Deposit Scheme (profit in advance):

This is a fixed deposit product with advance payment of profit and free ATM/Debit Card.
The deposit can be invested for 3, 6, 12, 15, and 18 months. The term account can be opened
singly or jointly. Minimum investment is Rs. 50,000/-. No maximum limit.
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 Munafa hi Munafa term Account (monthly payment of profit):
The product is available to all type of customers who are eligible to invest in term deposit as
per bank’s criteria. . The term account can be opened singly or jointly. Minimum investment
is Rs. 100,000/-. No maximum limit. Profit will be paid on monthly basis.
BOP TAQWA ISLAMIC BANKING
BOP TAQWA Islamic banking Division,is all set with its rebranded and revived outlook to
provide customers with distinct Shariah Complaint Banking Service in the Islamic
Financial Market.
Allhamdulilah, BOP TAQWA has proved to be a successful story where the Pakistan largest
conversion project was successfully completed and resultantly an extended network of
branches spread across Punjab , KPK and AJK is fully operational and serving market
needs.
TAQWA IBD still has a long way to go. We are in continuous process of Growth and
development. Our team is rigorously working on development of distinctive Riba Free
and Shariah Complaint products to serve the needs of all sectors of economy
including corporate, commercial and consumer.
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Shariah Board
MUFTI MYHAMMAD ZAHID
(Chairman Shariah Board)
Mufti Muhammad Zahid is a renowned personality in the field of Shariah having a long
association of 26 years while serving as a teacher in various branches of Islam & Arabic
language, Vice President of Jamia Imdadia Faisalabad and member of its Dar-ul-Ifta since
1989.
Mufti Muhammad Zahid is working as General Secretary Centre for Islamic Economics,
Faisalabad, Member Regional Focus Group on Islamic Banking State Bank of Pakistan,
Member Shariah advisory cell International Islamic University Islamabad, Member Executive
Committee International League of Islamic Literature (????? ????? ???????? ????????)
Pakistan Chapter, External Examiner for viva-voce of thesis of LLM (M. Phil.), Faculty of
Sharia & Law, International Islamic University, Islamabad, Member Board of Studies Faculty
of Sharia & Law (Dep. Islamic Law) International Islamic University Islamabad, Member
Ulema Board PIPS (Pak Institute for Peace studies), Member consultancy group Centre for
Islamic Business Riphah International University,Chairman of the Shariah Supervisory
Committee of Bank of Khyber and Chairman Shariah Board of Askari Bank Limited and
Shariah Board Member of MCB-ArifHabib Islamic Fund.
Mufti Muhammad Zahid has authored various publications

including ?????? ??????? ?? ???????)) (translation from English to Urdu of the work of Mufti
Muhammad TaqiUsmani).
Mufti Muhammad Zahid holds Shahadh Al-Alamiyyah (????? ????????) from Wifaq-ul-
Madaris, Al- Arabiyyah Pakistan and Masters Degree in Arabic from International Islamic
University, Islamabad.
Dr. MUFTI EJAZ AHMAD SAMADANI
Member – Shariah Board
Dr. Ejaz Ahmed Samdani is an eminent Shariah scholar and has sound experience of Islamic
Banking & Finance. Dr. Samdani has strong academic background in Islamic Studies and
Islamic Economics. He completed his all religious qualifications such as Takhassus fi Iftaa &
Shahdatul Aalimiyah from Jamia Dar ulUloom, Karachi.
Dr. Samdani has done his Masters of Arts in Islamic Studies and LLB from Bahauddin
Zakariya University and Sindh Muslim Govt. College respectively Further, he did his
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Doctorate (PhD) from Karachi University (on the topic of Islamic Banking and Gharar
(uncertainty).
He is the Faculty member of Centre for Islamic Economics, Vice Chairman of “Takhassus fi
Al Dawa” in JamiaDarulUloom, Chairman Shariah Board Maldives Islamic Bank and
Member Shariah board of various banking and non-banking financial institutions in Pakistan.
He has delivered several lectures at local and international forums and has issued about more
than three thousand fatawas on different Islamic topics especially in Islamic Finance and
family law. He has written many books on different Shariah matters and his several research
topics have been published in various well renowned newspapers and magazines.
Dr. MUHAMMAD MUSHTAQ AHMED
Resident Member Shariah Board
Dr. Muhammad Mushtaq Ahmed is a renowned Shariah scholar with proven experience of
Islamic Banking and Finance. Dr. Mushtaq has preeminent academic background in Islamic
Studies & Islamic Banking and he did his Doctorate (Phd) in Islamic studies/ Shariah with
research topic of “Islamic Banking Practices - Shariah Perspective”. He specialized in Fiqh,
Iftaa and Shariah from DarulIftaaWalIrshaad Karachi Pakistan; he has distinction as Gold
Medalist in M.A Islamic Studies (Shariah)/Aalimiyya from JamiaDarulUloom, Karachi.
He is teaching Shariah and Islamic banking courses since 2006. He has delivered lectures in
various national and international programs about Islamic Banking, his research papers on
Islamic Banking and Finance and social issues have also been published in international
research Journals.
Bai Misaal Term Deposit (profit on maturity): Islamic Products
TAQWA ISLAMIC BANKING has stepped in the Islamic Financial Market with its assorted
products and services which are both industry compatible and competitive. Under the kind
supervision of our worthy Shariah Board, TAQWA IBD is providing Shariah compliant
solutions to its financial customers.
On deposit side, we are serving our customers with following products;
 BOP Taqwa Saving Account

 BOP Taqwa Current Account
 BOP Taqwa Riba Free Certificates
 Margin Munafa Account
 Cash Management Facility Account
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We are confident that we will be BOPe to expand our Islamic Financing Services to all
sectors of economy including Consumers, SME, Commercial and Corporate sectors across
Pakistan. Presently, we are offering following products;
 Ijarah finance facility

 Murabaha finance facility
 Istasna finance facility
 Musharakah finance facility
 BOP Taqwa Car Ijarah
We are determined to facilitate our valued customers through adding more beneficial
schemes to our product basket.
Minimum investment is Rs. 100,000/-. No maximum limit. Profit will be paid on maturity
along with principal amount.
In case of pre-mature encashment, corresponding rate applicable to the period of retention

then declared by the bank will be paid, provided deposit is kept for a period not less then 7
days. The profit shall be paid on normal term deposit rates of that time.
 Senior Citizens Term Deposit (monthly payment of profit):

This is a fixed deposit product with high rate of profit payable on monthly bases with a fixed
tenure of one year. The product is available for senior’s citizens having age of 55 years and
above and are eligible to invest in term deposit as per bank’s criteria.
Minimum investment is Rs. 100,000/- while maximum deposit limit is Rs. 3,000,000
Profit And Loss Sharing Chequing Accounts:
 Profit Loss Saving Accounts (PLS):

These types of accounts are designed to encourage the saving habit of the customer and
lead to long term or invest relationship. Bank saving account are in the nature of deposit
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accounts and are not normally available for drawings. PLS saving accounts can be opened
with the minimum sum of Rs. 100
Savings accounts with the banking sector represent a very small proportion of total deposits.
Customer can make withdrawals from this type of account. Withdrawals against this account
are very low.
 Young Lions Saving Accounts (YLS):

BOP introduces a whole new banking experience aspiring youngsters. The product is
availBOPe for all children less than the age of 18 years to open PLS minor saving account
with their parents/guardian as per bank rules. The profit will be credited on monthly basis in
the respective account.
However for renewal, charges will be applicBOPe. Free first 25 leaves cheque book will be
issued at the time of account opening.
 Gharayloo Saving Account:

This is a saving bank product available for all housewives who are eligible to open a saving
account as per bank’s criteria. The account can be opened singly or jointly with husbands.
Minimum initial deposit will be Rs. 10,000/-. Unlimited transactions (debit/credit). In case
balance falls below Rs. 10,000/- account maintenance charges will be applicable.
Loan Products:
A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial
assets over time, between the lender and the borrower. In a loan, the borrower initially
receives or borrows an amount of money, called the principal, from the lender, and is
obligated to pay back or repay an equal amount of money to the lender at a later time.
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 Commercial Finance:
Commercial finance is of three types:
1. Running finance
2. Demand Finance
3. Cash Finance.
1. Running Finance:
Running finance is the advance which is given by allowing the customer to withdraw more
money from his current account than he has in it. Running finance at The Bank of Punjab can
be against pledge of shares, Government securities, and hypothecation of stock.
2. Demand Finance:
Credit facilities extended against registered mortgage of property (i.e., land/buildings

constructed or to be constructed) is by nature classified as a Secured Advance. A formal
charge on the property is established and recorded with the Registrar Land and Property
termed as registered mortgage. Advances are also made against equitable mortgage of
property, whereby the original Title Deed, are deposited with the Bank as Security and the
charge is registered with the registrar SECP.
In case the Finance is allowed to Limited Companies, where the original title documents of
Land/Building and other Fixed Assets are held by the senior charge holders, our charge (Pari-
Pasu or ranking) as approved by Credit Committee, shall be recorded with the Registrar
Securities & Exchange Commission of Pakistan (SECP). However, in case of Pari-Pasu
Charge, NOCs from the senior Charge Holders shall be obtained before registration of charge
with SECP. In case of borrower’s failure to liquidate the obligation or on classification of the
advance to “Non-Performing” the Bank has a legal recourse to apply for a decree in a court of
law, to sell off the mortgaged property through auction as ordered by the court.
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3. Cash Finance:
This facility is generally provided against pledge of goods. Under this type of financial
accommodation the facility amount is disbursed in specially opened account for the purpose.
The pledged goods are released to the borrower against cash payment only. In case the goods
pledged are seasonal in nature, the customer would be required to adjust the facility before
the season ends. Rollover shall not be allowed.
 Agriculture Credit
There are many agriculture promotion schemes provided by BOP.
1. Kissan Dost Agricultural Finance Scheme

Such type of scheme provides farmers a real plate form to accelerate. The basic purpose of
this scheme is to provide financial facility to farmers for purchase of inputs (Seed, fertilizer,
pesticides, fungicides etc). Maximum limit is of Rs.500000 according to per acre of the crop.
Security is charges on Agriculture Land through Agriculture Pass Book. The borrower will
have to arrange life assurance under the Bank’s charge.10% mark-up per Annum.
2. Kissan Dost Tractor Finance Scheme
Financial facility provided to the farmers and non farmers (those who provide tractors to
farmers on rental basis for various tractor related operations), for purchase of Tractor on
Lease Finance Basis. Resident Self Cultivator having Agriculture Land minimum 5 acres and
maximum 50 acres. Maximum limit is of Rs. 750,000/-.10% to 20% of the cost of Tractor
will be paid by the borrower on case to case basis. Lease Tractor (to be registered in the name
of Bank); Charge on Agriculture Land through Agri. Pass Book; One personal guarantee of
reputBOPe person. Two written satisfactory market checking reports. 10 equal half yearly
installments (within five years).
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3. Kissan Dost Aabrari Scheme:
Financial facility provided to the farmers for installation of Tube well, turbines etc. Resident
Self Cultivator having Agriculture Land minimum 5 acres and maximum 50 acres.Maximum
Rs 500,000/-. 20% of the cost of project will be paid by the borrower. Lease Assets i.e.
Engine, Tube well and other related implements (The vendor will issue receipt in the name of
Bank). Charge on Agriculture Land through Agri. Pass Book. Guarantee of reputBOPe
person acceptBOPe to Bank. Two written satisfactory market checking reports. The
maximum amount of Finance will be allowed upto 75% of the Oast Bai Value of land (Oast
Bai is verified by Revenue Officer).8-10 equal half yearly installments (within four to five
years).
 Business Promotion Finance Schemes (Consumer Finance)

1. BOP Car Loan
2. BOP Assaish Loan
3. Quick Cash
4. House Loan
1. BOP Car Loan

BOP car loan is a demand financing facility to purchase brand new locally
manufactured/Assembled cars for personal use. This facility can be availed by salaried person
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of different nature and by the business persons. All must have the holdings of CNIC.
2. BOP Aasaish Loan

BOP Aasaish loan is demand finance facility for purchase of consumer durBOPe goods like
TV, Refrigerators, Mobiles, Microwave Oven, Fans, Audio/Video system etc with no down
payment, in addition with the free home delivery. The financing tenure of this product is max
36 months. The nature of employment should be salaried or the business man.
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3. Quick Cash:
You are thinking of sending your child abroad for higher education or a daughter’s wedding
perhaps. However, you do not see to fulfill them as you do not have money. Don’t get
troubled as Bank of Punjab has the answer to this in the form of Quick Cash.
It is a running finance facility provided to salaried individuals through their bank accounts.
You can get up to 50,000 and 500,000, base on your income.
4. House Loan:
If you are a government employee, you are in private employment, businessman or a

professional, you can avail this facility.
The amount of loan that can be availed:
 For the purpose of purchase of house flat or construction of house the minimum loan
is Rs.100, 000 and the maximum depends on the amount of debt. Debt/equity should
be 70:30
 For house improvement and renovation the minimum amount is Rs. 25,000 and the
maximum depends on the amount of debt. Debt/equity should be 20% of assessed
value
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.
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 SERVICES
Commercial Banking
The Commercial Banking Group has been formed to cater the needs of small & medium size
customers for increasing Bank’s business significantly with clear focus, repositioning of
resources and active marketing to improve Bank’s profitability.
Cash Management
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Cash Management is a process of collections & payments on behalf of the Customers using
the Bank Network. The objective is to facilitate organizations with multiple collection points
in gathering Cash / Funds and making them availBOPe in the customer operating Account.
Online cheque deposit

Taking another step towards customer convenience, BOP now offers transactional
convenience across all its 273 branches.
Customer can deposit cheques/instruments in any branch of BOP across Pakistan and can
receive credit in account maintained with parent branch. Charges are applicBOPe according
to the accounts.
Inward Home Remittance

BOP provides the services of inward home remittance from anywhere in the world. It is easy,
safe, reliable, and fast way of transfer of money.
All branches of BOP across Pakistan working with partners for payment of inward remittance
from UAE, USA, Europe and other countries.
Automated Teller Machine (ATM)

Through the ATM’s Customers have access to the various services such as withdrawal,
balance enquiry and mini statement? Complete security is ensured because access to the
account is only possible by entering a four digit personal identification number (PIN) known
only to the account holder. Cash withdrawal limit is up to Rs.20, 000 per day.
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E- Banking
BOP is currently offering window-based online banking to its customers, which gives access
to information on their accounts and the liability to act on the latest information received over
the net.
Lockers
It is one of the utility services that BOP provides to their customers for keeping jewellery,
important documents and other valuBOPes.
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Pay Order
BOP provides transfer of money using different facilities. Its pay orders are a secure and easy
way to move the money from one place to another. The charges for this service are extremely
competitive.
Demand Drafts
BOP provides safe, speedy and reliable way to transfer money at vary reasonable rates. Any
person whether an account holder of the bank or not, can purchase a Demand Draft from a
bank branch.
Agricultural Finance
It help farmers utilize funds efficiently to further develop and achieve better production. It
provides farmers an integrated package of credit with supplies of essential inputs, technical
knowledge, and supervision of farming.
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Agriculture Loans
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Nurtures the best in nature
Our Strategic Business Plan identifies Agriculture as a priority sector. Agriculture is the base
on which the edifice of national economy is built and, needless to emphasize, also constitutes
the fulcrum for poverty alleviation, employment generation and over all prosperity of the
farmer.
Our countrywide network of branches, that too predominantly at Tehsil level/remote rural

locales and environs, affords us advantageous flexibility, outreach and demographic coverage
to access and serve the Agrarians at their convenience on their doorsteps. Our staff includes
over 125 professionally qualified and well trained Agriculture Credit Officers, fully
conversant with latest farming procedures and practices and well versed in customs, norms,
social ethos and aspirations of our tillers. Through our team, we are actively involved in
disseminating information, imparting knowledge and rendering practical assistance at the
level of every individual customer.
We posess the scientific wherewithal to encourage farmers to invest in state of the art
equipment, tools and implements etc. in the Dairy sector, especially in the wake of ever rising
demand for Dairy Products. We enBOPe our customers to achieve even greater productivity
by enBOPing enhanced milking capacity, quality assurance, proper preservation and secure
storage, as well as transportation to processing facilities. We have also recently launched
Livestock Development initiatives, while our scheme for Fish Farming too has gained great
popularity and success.
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Ret
ail Finance
RFD is catering needs of individual customers by offering them a mix of consumer products
as well as of commercial/SMEs clients through its carvan fleet financing product. RFD has
designed its innovative Products to meet customers’ needs & provide state of the art services
through dedicated Consumer Financing Centers (CFCs) present across Pakistan. Moreover,
we are pioneer bank in solar financing and we are offering customized solutions on very
reasonBOPe rates to various market segments.
RFD is also playing active role in supporting GOPb’s vision of providing employment
opportunities & sheltering to masses of Punjab through Yellow Cab, Apna Rozgar Scheme &
Ashiana Housing Finance Schemes.
The activities are focused on achievement of desired objectives on following RFD core
functions;
 Manager Business Development, marketing, promotion, Processing and

collection & recovery of following products
oAdvance Salary loan

oBOP Solar
oCar Lease-Cargar
oApna Ghar House Financing
oCarvaan Fleet Financing
oYellow Cab Scheme
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oAshaiana Housing Scheme
oApna Rozgar Scheme
Wholesale Banking
The Bank of Punjab has recently created a new segment of “Wholesale Banking (WB)”
targeted at providing seamless banking services to its Commercial and Corporate clients by
sharing maximum value with its relationships and to ensure improved services under one
roof. In order to take the bank one step further, 10 branches have been dedicated for this
Division. The Corporate & Investment Banking Group and Commercial Banking Group have
been replaced by two new units namely, Wholesale Banking-I (Karachi, Sialkot, Multan,
Gujranwala, Faisalabad & Jhang) and Wholesale Banking-II (Lahore, Rawalpindi,
Islamabad,). The proposed change is expected to bolster relationships with our valued
customers.
Services being offered through these 10 branches include origination & sales of banking
products that meet the expectations of its ever growing client base. Dedicated teams of
Relationship Managers ensure the delivery of our entire range of financial products and
services to our clients and provide tailored financial solutions to the customers with respect to
their business needs.
Apart from regular branch banking offered at these 10 branches, the following products are
also being offered:
 Project Finance
 Debt Syndications and Consortium Financing
 Corporate Finance
 Long Term/Demand Finance
 Working Capital Finance
 Letter of Credit, Contracts and Export collection services
 FE Loans, Pre and Post Shipment Export Financing
 Import Financing
 Bills Discounting
 Letter of Guarantees
 Cash Management Services and etc.
 General Banking of the Bank of Punjab
ACCOUNTS OPENING DEPARTMENT
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Accounts opening department is one of the departments that come under the general banking
facilities provided by The Bank of Punjab. Account opening is the first step towards
establishing a relationship between the customer and the bank.
 Major Responsibilities of Account Opening Department
Account Opening
The person would like to open his account is required to meet with the manager or second
officer, who will give him an Application form specifically used for account opening. Along
with the form a card for specimen signature is also supplied to the customer. Manager has
every right not to accept this contract if he is not satisfied with the details provided by the
customer. But in case the contract is acceptBOPe to both, the next step is official account
opening.
The Bank of Punjab is offering basically two types of account:

 Current Deposit Account
 Profit and Loss Sharing Account
1. Current Deposit Account

Current account is a running account that is continuously in operation, by the customers on
all the working days of the bank. Customers can withdraw the amount from the bank without
prior notice. Bankers usually don’t pay interest on these deposits as they can withdraw
without notice.
These accounts are of various types:
 Individual Account
 Joint Account
 Proprietorship account
 Partnership Account
 Joint Stock Company Account
 Clubs, Society, Association or Trust Account
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Individual’s Accounts
When a single man or women opens an account in his or her own name and has a right to
operate, that account is called as individual account
Documentation:
For opening an individual accounts following documents are required:
 Copy of CNIC
 Source of fund
 Proper identification (introduction)
 Two passport size photographs (if required)
 Copy of CNIC of next to kin
Joint Account
When two or more persons neither partners, nor trustees, open an account called as joint
account
Documentation:
For opening a joint account following documents are required:
 Copy of CNIC of both the partners
 Source of fund
 Two passport size photographs of both the partners (if required)
 Copy of CNIC of next to kin
Proprietorship Account
Proprietorship account is concern with the business operated by one person who is the
proprietor of the business concern however he can nominate his any representative to operate
the account on his behalf. Authority letter to this effect obtained by the account holder.
Documentation:
For opening a proprietorship accounts following documents are required:
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 Copy of CNIC/Passport copy
 Copy of Certificate of Registration of firm with some Govt./semi Govt/Trade
organization/professional body etc.
 Request letter on company’s letter head
 Copy of sole proprietorship declaration to be signed in a personal capacity.
 Sole Proprietorship stamp
Partnership Account
Partnership account is opened by partners of the firm who some times authorize one of the
partners or managing partner of the firm.
This account is opened on provision of partnership deed which can be registered as well as
unregistered. A letter of partnership deed is also being obtained for opening an account
signed by all partners.
Documentation:
For opening a partnership accounts following documents are required:
 Copy of CNIC/Passport copy of all partners
 Status of the firm (in case of registered firm)
 Attested copy of partnership deed (in case of registered firm) duly signed by all
partners of the firm
 Stamp of partnership firm.
 Attested copy of Certificate of Registration of firm issued by Registrar of the firm.
 If firm is unregistered clearly written UNREISTERED on AOF
 Letter showing the authority of one or more partners to act on
Joint Stock Company Account

Documentation:
For opening a joint stock company accounts following documents are required:
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 Certified copy of Resolution of board of directors
 Certified copy of Memorandum of association
 Certified copy of Article of association
 Certified copy of Certificate of incorporation
 Form 29(B) (lasted copy)
 List of directors with address, signatures, and CNIC
 Authorized person to operate the account
 Undertaking that in case of any changes they will have to inform the bank and the
chairman signatures undertaking
2. Saving Accounts
These types of accounts are for those persons who want to make small savings. Saving
accounts are of various types.
1. Individual account
2. Joint account
3. Either or survivor account
4. Resident or non-resident
5. With occupation
6. With application of zakat
Account Closing
When a person wants to close his account because of any reason, he has to give a hand
written application to the head of the operations department to close his account, plus
remaining leaves of cheque book.
The operation manager first verifies the signatures of account holder, and then closing is done
form register on the computer where the account was opened. In the file of account holder,
his account opening form is also crossed and all the remaining checques in a checque book
are canceled.
Dormant Account
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When any customer does not operate his account for 6 months, then computer, automatically,
includes that account holder in inactive account. This is dormant account. Now account
holder cannot operate his account. Bank informs him that your account is now inactive.
Cheque Book Issuance

When the account is opened, then, a cheque book is issued to the customer so that he can
withdraw his money whenever he wants during banking hours.
Procedure
All the account opening formalities must be completed before, issuance of cheque book.
Particulars of the cheque book requisition should be completed containing title of account,
account number, type of currency, number of leaves and signatures of the customer.
If customer is unable to collect his cheque book, then he can give authority to the third person
to collect his cheque book on his behalf by signing on the back of the requisition. in such case
the particulars of the third party are required like name of the person, CNIC number and
signature of that person on requisition and cheque book issuance register.
Cheque book is taken out from the safe. Particulars are entered in the cheque book issuance
register. It is assured that account number and cheque number are printed on every leaf of the
cheque book and those leaves are counted, Name of the account holder is written on the cover
of the cheque book and the requisition on the cheque book for further issuance is properly
filled stamped and signed by the officer of the bank.
Cheque book is delivered to the customer and his signatures are taken into the
cheque book issuance register. Cheque serial number is entered in the system.
Stock of cheque books are balanced at the end of each day. Terms & Conditions
Terms and Conditions for Opening of an Account:
The following words and expressions shall, unless the context otherwise so requires, have
the following meanings:
a) Account means basic banking, savings or current (Pakistani Rupee or foreign

currency) account(s) maintained by the customer with the Bank.
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b) Account Opening Form means the form prescribed by the Bank, as modified or
amended from time to time, which is to be completed by the customer for opening an
account.
c) ATM Services means services offered by the Bank to the account holders as per the
ATM Terms and Conditions prescribed by the Bank from time to time.
d) Business means business, transactions and products approved by the Shariah Advisor,

for the purpose of making investments from funds availBOPe in the pool(s).
e) Business Day means a day when the relevant branch of the Bank is open to conduct
banking business and any day not specified as non-business day for banks by SBP.
f) Business Income means total income of a pool from Business (es) for a given period.
g) Customer means any individual person, firm, company or any other association or

organization, maintaining an account with the Bank, and includes (where appropriate)
any person authorized by the customer to give instructions on customer’s behalf in
relation to customer’s account.
h) Direct Expenses means all direct costs and expenses attributable to a pool in relation
to a Business for the purpose of deriving Business Income.
i) Hiba means a part of profit that is due to the Bank, which the Bank may relinquish, on
the date of distribution, in favor of depositors.
j) Internet Banking Service means the service to be provided by the Bank, which

would enable the customer to obtain information from and give instructions to the Bank
by logging-on to the Bank’s Website.
k) Internet Banking ID means the unique identifier which is issued to the customer by
the Bank, and which would enable the customer to access the Internet Banking Service.
l) Investment Risk Reserve (IRR) means the amount appropriated by the Bank out of
the income of investment account holders, after allocating the Mudarib share on the
basis of Tabarru, in order to cater against future losses for investment account holders.
m) Loss / Net loss means loss of respective Pool(s) after charging all direct expenses and
write offs (if any), which shall be calculated on an accrual basis and in conformity with
the generally accepted accounting principles applied on a consistent basis.
n) Mudaraba means a form of partnership where one party provides the funds while the
other provides expertise and management. Any profits accrued are shared between the
two parties on a pre-agreed basis, while loss is borne by the provider of the capital.
o) Mudarib means the party in a Mudaraba agreement that provides the expertise and
management for managing the funds of the person who provides the funds.
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p) Musharaka means a relationship established under a contract by the mutual consent
of the parties for sharing of profits and losses in the joint business. It is an agreement
under which the Bank provides funds which are mixed with the funds of the business
enterprise and others. All providers of capital are entitled to participate in management,
but not necessarily required to do so. The profit is distributed among the partners in pre-
agreed ratios, while the loss is borne by each partner strictly in proportion to respective
capital contributions.
q) Password means an alphabetical and / or numeric code initially assigned to the

customer by the Bank and includes any other code as may be subsequently adopted by
the customer for accessing the Bank’s Internet Banking Service.
r) PIN means Personal Identification Number initially assigned by the Bank at the time
of issuance of ATM Card and includes such other code as may be subsequently adopted
by the customer for accessing the Bank’s ATM Services.
s) Profit Equalization Reserves (PER) means the amount appropriated by the Bank,

from net income of the pool on the basis of Tabarru, in order to maintain a certain level
of return in investment for investment account holders and increase owners’ equity.
t) Profit / Net profit means profit of respective Pool(s) after charging all direct expenses
and write offs (if any), which shall be calculated on an accrual basis and in conformity
with the generally accepted accounting principles applied on a consistent basis.
u) Rab-ul-Mal meansthe party in a Mudaraba agreement that provides the funds and

accordingly shares the accrued profit with the Mudarib on a pre-agreed basis and solely
bears the loss (if any) faced by the Mudaraba.
v) SBP means the State Bank of Pakistan, established under the State Bank of Pakistan
Act, 1956, and includes it successors in- interest.
w) The Bank means BOP – Islamic Banking Division having its principal office at 10-
B, Block II Main Boulevard, Gulberg III, Lahore Pakistan.
x) The Bank’s Website mean BOP’s website at www.bop.com.pk as modified and / or

re-designed from time to time.
y) The Terms or "These Terms" means these and any supplementary terms and

conditions, as amended from time to time.
2. Opening an Account
The Account shall be opened upon submission of duly filled-in Bank's prescribed Account
Opening Form properly in the manner provided and on submitting all such documents and
information as may be requested by the Bank. Further, the Bank reserves the right to demand
such relevant documents and information even after opening of account as deemed necessary.
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In the event of failure of the Customer to provide such documents and information, the Bank
may, at its sole discretion withhold operations of the Account or close such Account.
The Bank will not refuse opening of account for prospective clients who meet the
requirements laid down in the Prudential Regulations, other instructions issued by SBP from
time to time and Bank's own policies.
The Account shall be opened with an initial / minimum deposit as stipulated by the Bank
from time to time unless specifically relaxed / exempted by SBP.
A distinctive number will be allotted to every account and this number should be quoted in all
correspondence relating to the account and at the time of making a deposit or withdrawal.
The Bank reserves the right to change the Account Number or any part of it in order to meet
its book keeping / administration requirement. However, intimation of change in the account
number shall be sent to the account holder.
The Accounts may be opened singly in one name or jointly in two or more names.
3. Minor Account
Deposit may be accepted from minors provided the account is opened and operated through
a guardian.
The Account thus opened will continue to be operated upon by the guardian even if the
minor attains the age of majority. The necessary consent to this effect will be obtained at the
time of opening of the account. The orders of the court will, however, be followed in case the
guardian is appointed by the court.
4. Joint Accounts
If an account is opened in the names of two or more persons, the balance to the credit of that
account and any accruals thereon shall at all times belong to the persons who are signatories
to the account opening form. Such persons shall also be jointly and severally liable for all
liabilities incurred in relation to the account and the services.
The customer authorizes the Bank to pay or deliver to either or survivor(s) of the person(s) in
whose names the account has been opened, or the legal representative(s) of such survivor(s),
any monies, securities or properties standing to the credit of the joint account or held by the
Bank.
In the case of joint accounts, following further provisions shall also apply:
a) Each of the signatory to the account shall be deemed to have authorized and
empowered the other signatories:
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i) to endorse and deposit for credit to such account, any and all cheques, drafts,
notes or other instruments or the payment of money, payable or purporting to
belong to other person(s) named in the account, and should any such instrument(s)
be received by the Bank without being so endorsed, the Bank is authorized in the
absence of any specific instruction to the contrary, to endorse the same on
customer's behalf and deposit it to the credit of such account; and
ii) To issue any cheques, drafts, notes or other instruments that may be drawn
against such account.
b) If prior to acting on instructions received from a signatory, where a joint account is

operated on the basis of either or survivor of the signatories, the Bank receives
contradictory instructions from any joint account holder(s), then the Bank may, at its
absolute discretion, choose to act on the instructions of all the signatories,
notwithstanding that any relevant existing mandate or instructions require otherwise.
c) In the event the Bank receives conflicting instructions from the signatories to a joint
account, the Bank shall be entitled to suspend the operation of such account, without any
prior notice.
In the event of a death of any one or more of the account holders having operational
instructions, in the case where the credit balance in a joint account is payable either to any
one or more of the account holders or survivors of them; in the absence of a contract to the
contrary, the credit balance will become payable to the survivor(s) without reference to the
legal heirs of the deceased person or persons. In all other cases, the credit balance will be
payable to the legal heirs of the deceased account holder(s) along with the remaining account
holder(s) as per bank's procedure.
5. Cheque Books
Applications for issuance of Cheque Books should be made on prescribed requisition slips
and thereafter for further issuance of Cheque Books on the requisition slip inserted in the
Cheque Book already issued.
Where a person is sent to take delivery of a Cheque Book on behalf of the account holder,
such person must be in possession of a written authority form the account holder to do so as
well as a Cheque Book requisition slip.
The account holders in their own interest and to reduce the risk of fraud are requested to
keep their Cheque Books under lock & key and to ensure that their Cheque Books do not get
into unauthorized hands. In case of loss or theft of Cheque book, if the customer reports the
concerned Branch before payment, he will not be liable for any loss or damages. However, in
any case, bank is liable to observe due diligence in good faith.
Loss of Cheque leaves or Cheque Book or the Cheque Book Requisition Slip should be
immediately notified by the Account holder to the Bank in writing.
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If the Cheque book is not collected within sixty (60) days of the issuance, it will be
destroyed by the bank at customer's cost.
Cheques or other negotiable instruments deposited by the customer that have been
dishonored may be returned by post or special messenger to the customer at his last known
mailing address with the Bank at the risk and expense of the customer concerned, unless prior
arrangement otherwise has been made for its collection.
6. Statement of Account
The statement of account will be dispatched to the account holder at periodical intervals, as
per frequency stipulated by SBP, and charges as per rules set by SBP.
The statement of accounts will be sent in following manner:
a) Where closing balance in an account, as on 30 June and 31 December, is less than

10,000/- free of charge statement of account will be dispatched at least once in a
calendar year within one month from the close of calendar year (i.e., by 31st January).
Statement of accounts for balances less than 10,000/-, which is dispatched through
regular post, customers may notify any discrepancies in statement of account within 45
days from the date of issue, after which Bank's statement will be considered final.
Where closing balance in an account, as on 30 June or 31 December, is greater than or

equal to 10,000/-, free of charge statement of account will be dispatched twice in a year
on, six monthly bases, within one month from the close of half year (i.e., June 30 and
December 31).
However, no statement of account shall be dispatched to dormant / inoperative accounts

during the period of dormancy / in-operation till such time accounts are reactivated.
However, statements to all such accounts shall be dispatched on due dates, starting from the
period preceding or equal to the date account was flagged dormant.
The Bank will take care to see that credit and debit entries are correctly recorded in all
accounts but in case of any error, the Bank shall be within its right to make the correct /
adjusting entries and recover any amount wrongly paid or credited and inform the account
holder subsequently. The Bank shall not be liBOPe for any loss or damage to the account
holder due to such errors or corrections thereof.
Duplicate copies of statement of accounts shall be provided by the Bank by debiting the
customers’ account as per the schedule of charges.
7. Deposits
All monies / instruments to be deposited in an account should be accompanied by a pay-in-

slip showing the title and number of the account. The entry of transaction shall be
authenticated by putting Bank's stamp under the joint signatures of two officers of the Bank
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on the pay-in-slip and counterfoil thereof. The depositor should satisfy himself / herself that
the transaction has been so verified on the counterfoil.
All cheques to be deposited for credit to the account should be payable to the account holder
and be "crossed" before deposit. Also particulars of the cheques (name of the Drawee Bank,
Cheque number etc.) should be correctly written both on pay-in-slip and the counterfoil
thereof. The Bank shall not be responsible in case of any loss where the above requirements
are not complied. In case of delay or loss occasioned in collection of cheques, the bank will
follow-up with the concerned for swift resolution.
Remittance received through mail will be acknowledged by return post. An account holder
who does not receive such acknowledgement should communicate with the Bank
immediately.
8. Withdrawals
Withdrawals from the account can be made only by means of Cheque supplied by the Bank
in printed form or any other mode approved by the Bank. Cheque should be written in un-
vanish able / un-erasable ink and be signed as per specimen signature(s) supplied to the Bank
and any alterations in the instrument must be authenticated by the drawer(s) under his / her /
their full signature(s) as the case may be.
Illiterate customers will not be liable for cuttings and alterations on cheques unless duly
authenticated.
The credit balance in an account in the name of two or more persons will be payable as per
Operational instructions given / signed by all the account holders in Account Opening Form.
However, the possible cases can be as under:
a) Either or any one or more of them or the survivors of them; or
b) All of them.
Withdrawals will not be allowed against postdated (payable on any future date) and stale (06
months after issuance date) cheques and against un-cleared funds.
If payments from an account are at any time forbidden by any one or more of the account
holders, the amount will only be payable on the discharge of all the account holders or the
survivor or survivors of them.
9. Dormant Account
All depository accounts like current / savings / BBA etc. which remain non operative for a
period of six months in case of current and BBA account and for a period of one year in case
of saving account, will be classified as dormant accounts.
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In case of:
a) Current / BBA account, after passing one and half year in dormant status, if there is still no
operation in the account for continuous period of two years; the account shall be classified as
inoperative.
b) Saving account after passing two years in dormant status, if there is still no operation
in the account for continuous period of three years; the account shall be classified as
inoperative.
This entails certain restrictions on the operation of such accounts and for reactivation, the
account holder must in person request for a change of status and will produce original CNIC
or Passport or Pakistan Origin Card (POC) or National Identity Card for Overseas Pakistani
(NICOP) and Photo copy for Branch / Bank attestation.
After passing further 8 years in inoperative status, in current / BBA account and 7 years in
inoperative status, in saving accounts i.e., if an account is not operated upon by a customer
for a continuous period of ten years; it will be classified as unclaimed deposit account and
will be surrendered to SBP as per the provisions of Section 31 of the Banking Companies
Ordinance 1962.
10. Closing of Account
The Bank may at its sole and absolute discretion close any account, which is not being
operated in a manner satisfactory to the Bank or for any other reason whatsoever, with or
without any prior notice to the customer. The Bank also reserves the right to terminate, at the
Bank’s sole discretion, any other type of relationship(s) with the customer, e.g. lockers, safe
custody, relationship cards, etc. at any time without assigning any reason.
In case the account is closed the balance will be remitted to the depositor at the address given
by the account holder(s).
Upon closure of an account, the customer must return to the Bank any unused cheques
relating to customer’s account. Alternatively, the customer must confirm in writing to the
Bank’s satisfaction that the unused cheques have been destroyed.
The Account Holder(s) wishing to close the account must withdraw the outstanding balance,
if any, after depositing account closing charges as stipulated by the Bank.
. All accounts where there is no customer's initiated operation since two years and have nil
balances, shall be closed by the bank without giving any notice.
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11. Death / Bankruptcy of Account Holder(s)
In case of death / bankruptcy, the Bank will stop operation in the account immediately, after
the receipt of official notice or as and when become aware of it from any other reliable
source.
In the event of a death of any one or more of the account holders of Joint account:
a) In case the credit balance in an account in the name of two or more persons, will be
payable to either or any one or more of account holders or the survivors of the account
holders, as instructed by all the account holders in Account Opening Form (as per
Operational instructions), and in the absence of a contract to the contrary, the credit
balance will become payable to the survivor(s) without reference to the legal heirs of the
deceased person or persons.
b) In all other cases, the credit balance will be payable to the legal heirs of the deceased
account holder(s) along with the remaining account holder(s) as per bank's procedure.
12. Current Account
Current Account is opened on the basis of Qard Hasna and offers the account holder the
flexibility to withdraw funds from time to time at his / her convenience.
The depositors shall be made aware that no profit shall be payable on Current Account. The
deposits received by the Bank under Current Account can be used by the Bank as its equity at
its sole discretion for its business purposes including investments and financings under
Shariah compliant modes in any manner the Bank considers appropriate after approval of its
Shariah Advisor.
13. Basic Banking Account (Current Account)
The minimum initial deposit for this type of account will be Rs. 1,000/ or as per amount
prescribed by SBP.
The account will be non remunerative account, i.e. no profit shall be paid on the deposit in
Basic Banking Account (BBA).
No limit on minimum balance. In cases, where balance in BBA remains 'nil' for a continuous
six month period, such accounts will be closed.
No fee will be charged for maintaining BBA.
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Free of charge ATM withdrawals from the bank's own ATMs. In case of withdrawal from
BBA through the ATM machines of other banks, bank shall recover charges as per schedule
of charges.
Statement of account will be issued once in a year, duplicate copies of the statements of
accounts will be provided on request upon payment of relevant charges.
14. Profit and Loss Sharing Savings Account & Riba Free Certificates
The relationship between the Bank and customers holding savings and / or Riba Free
Certificate (RFC) shall be based on the principles of Mudaraba, where the Bank shall be
Mudarib and customers shall be Rab-ul-Maal. Further, the relationship is based on
unrestricted Mudaraba arrangement.
Funds deposited by the customer in saving and / or RFC shall be collected in pool(s) of
funds. The Bank may, at its sole discretion, commingle customer’s funds with that of the
other depositors in the pool and / or with the funds of the Bank.
The funds in such pool(s) shall, at the Bank’s sole discretion, be deployed in Shariah
compliant modes such as Murabaha, Ijarah, Musharaka or any other Islamic modes of
financing and or investment.
The updated and prevailing Mudarib share and Profit Weightages applicable to Savings
Account and other investors in the Mudaraba pool will be available at the Bank’s website,
displayed in the Bank’s branches, may be obtained from the Bank from time to time and/or
shall be communicated to the Customer in any other mode, whether electronic or otherwise,
in accordance with the Bank’s prevailing practice.
Shares of Profit / Losses for each calendar month shall be determined under the policies as
mentioned in section 15 below and credited to the customers’ account within eight (8)
working days after end of each period, for the preceding profit allocation period or on such
dates or intervals which the Bank may determine and calculate as per policy in vogue.
The Customer will not participate in the management or in decisions concerning investment
of the Mudaraba funds and by signing this contract investor understands that investor has
given unrestricted right to Bank / Mudarib to invest these funds.
In addition to the above:
a) PLS Savings Accounts may also be opened by charitable institutions for Provident
Funds and other funds of benevolent nature by Local Bodies, Autonomous Corporations,
Companies, Associations, Societies, Educational Institutions, Firms etc. and in all other
cases where such accounts are required to be opened under the orders of Competent
Court of Law; and
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b) Not more than one PLS Savings Account may be opened at a branch in any one name
except in the name of a parent or guardian for more than one child or for keeping funds
of specified nature category by an entity, with the Bank's prior approval.
15. Distribution of Profit & Loss
In case, where the Bank’s equity is comingled with the customer’s fund in a pool; the Net
Income / loss of pool would be allocated between the Bank’s equity and customer’s fund in
proportion to the respective share in pool.
Profit and loss on the Mudaraba based deposits would be computed and distributed on the
basis of average daily balance in customer’s account during the profit computation period.
At the end of each calendar month; Bank and the pool members shall share Profit or Loss
accruing from Business(es) after deducting all direct expenses pertaining to the Mudaraba at
actual in the following manner:
a) The Bank’s share in the Profit, in the capacity of Mudarib, would be admissible only
on profit allocated to depositors’ funds from the pool’s net income and would be
determined on the basis of a predetermined percentage, capped at a maximum of 50% of
the profit allocated to depositors’ funds from the pool’s net income. The said percentage
shall be determined by the Bank before the beginning of each period and made available
for the customer’s information on the Bank’s Website and on notice boards in the Head
Office and branches. Loss, if any, shall be distributed amongst pool members under the
principles of Mudaraba on the basis of pool members’ ratio of investment.
b) Balance of profit after deducting the Bank’s share determined under clause (a) above;
shall be distributed amongst the pool members on the basis of predetermined
weightages. Losses, if any, shall be distributed amongst the pool members under the
principles of Mudaraba on the basis of pool members’ ratio of investment.
c) In case of loss has been incurred by the Business and was caused by the gross
negligence or willful default of the Bank, the Customer will not be liable to share in such
a loss as contemplated by clause 15.3 (c) above.
For the purpose of smoothening of profit the bank may create Profit Equalization Reserve
(PER) or give Hiba to depositors by reduction of its share of profit sharing ratio.
16. PER, IRR and other provisions
PER, IRR and other provisions may be created, maintained and utilized as follows:
a) The Bank may at its sole discretion as per SBP rules, in order to maintain a certain
level of return on investment of depositors, provide for a PER, after approval of the
Shariah Advisor, an amount from the net income of the pool.
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b) The Bank may fully or partly utilize the amount of PER to improve the returns to the
depositors during periods when the pool’s profits are below market expectations.
c) Only existing depositors will qualify for share in PER. As such, the depositor agrees
that he / she / it shall not have any right to claim the share in PER (if any) after the
withdrawal of the deposit.
d) PER will be created on the basis of Tabarru from pool contributors.
e) Ratio of PER will be displayed on the notice board of the Branches before start of the
relevant period.
Hiba, may be provided to depositors by the Bank through reduction its profit, for the
following purpose:
a) In order to account for displaced commercial risk, the Bank in the capacity of
Mudarib may relinquish a part of the profit that is due to the Bank, in the favor of
depositors, only after the balance in the PER is fully utilized.
The Bank may at its sole discretion as per SBP rules, in order to mitigate risk of future losses
to investment depositors, provide for an Investment Risk Reserve (IRR), after approval of the
Shariah Advisor, an amount from the depositors profit i.e. distributable profit net of mudarib
share.
IRR will be created on the basis of Tabarru from pool contributors.
Only existing depositors will qualify for share in IRR. As such, the depositor agrees that he /
she / it do not have any right to claim the share in IRR (if any) after the withdrawal of the
deposit.
Allocated but unpaid profits which are not reinvested as per the mutual agreement will be
recognized as liability of the Bank.
5% of all dividend and capital gain on shares income shall be transferred to Dividend Income
provisioning and Capital Gain/Loss provisioning respectively at the time of liquidation of the
pool, part of the provisioning corresponding to interest income of the company’s total income
during that period as declared in published accounts (whether audited or unaudited) shall be
paid in charity and remaining income, if any shall be reversed so as to become part of net
income of the pool. The remaining portion thus reversed shall be based on Tabarru from the
pool contributors at the time of creation of such provisioning.
16.8. Clauses pertaining to calculation and distribution of Profit / Losses in this document
shall be in accordance with the prevailing laws of Pakistan and the applicBOPe rules and
regulations issued by the State Bank of Pakistan from time to time that are not in
contradiction with the rules and principles of Shariah and the profit and loss distribution
policy framework approved by the Shariah Advisor and the Board of Directors of the Bank.
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17. Profit on Closing / Withdrawal of Deposits from Saving Account
 In the event that the entire deposit in a Saving Account is withdrawn at a time during
the month when the Mudaraba profits for that profit calculation period cannot be
ascertained, the profit amount in such case shall be calculated using the profit rate
applicable for the immediately preceding profit calculation period and paid to the
customer as soon as possible following which the account will stand closed.
 This payment of profit will be based on the principle of Takharuj i.e. such allocation

and payment to the customer shall be in full and final discharge of Bank’s obligations
to the customer and no further claim whatsoever shall be made or entertained.
 In consideration of receiving the profit amount calculated using the profit rate for the
immediately preceding profit calculation period, the customer agrees to waive any
right he / she / it may have to receive the profit amount calculated in accordance with
the profit rate for the then applicable profit calculation period and agrees that any such
profit amount shall be applied to the benefit of the remaining account holders, and the
date such amount or amounts are paid shall be the profit payment date for that
account.
18. Foreign Currency Accounts
Foreign Currency current and saving accounts may be established in US Dollars and / or
such other currencies as may be determined by the Bank, as allowed by relevant regulations
in force from time to time.
The Terms and Conditions contained in clause 15 herein above applicable to saving account
shall also apply to Foreign Currency saving accounts.
No profit is paid on any current account balance in respect of Foreign Currency accounts.
Foreign Currency accounts, both current and saving are opened and maintained subject to
Foreign Exchange Control regulations and directives of the Government of Pakistan, or any
of its organs / agencies and the SBP from time to time.
19. Indemnity and Liability
The Bank shall use its best endeavors to provide smooth and efficient services to the
customers. Notwithstanding the same, the customer hereby agree and confirm to hold the
Bank and its officers, directors, employees and representatives, agents and contractors,
completely harmless and indemnified, from and against any and all costs, losses, damages,
liabilities, payments and obligations and expenses (including but not limited to reasonBOPe
legal costs) incurred, suffered, sustained, paid or imposed upon the Bank, arising out of, inter
alia:
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a) Bank acting upon the customer’s written or verbal instructions to stop payment, hold
mail and / or to act on any other instructions, including standing instructions issued by
the customer to the Bank from time to time.
b) Any claim by the customer or any third party concerning the amount, transfer,
delivery or non-delivery of any product requested through any of the Bank’s services or
any other matter relating to the services.
c) Any action taken by the Bank in reliance upon customer’s instructions which are:
i) revealed to be unauthentic, unauthorized or erroneous; and / or
ii) discovered to be fraudulent.
d) Any taxes or other levies paid or due to be paid by the Bank on payments made or to
be made by the customer, through or pursuant to the Bank’s services.
e) Customer’s act, omission, error, neglect, or default or those of the customer’s

employees, agents, correspondent or participating bank or of their employees and agents.
f) Subject to these Terms, any amendment to or variation in customer’s instructions.
g) For any instruction not complied with, due to reasons beyond the Bank’s reasonable
control.
h) Any loss arising out of unauthorized or fraudulent access to the customer’s account
caused as a result of customer’s negligence or failure to take reasonable care.
i) Loss or theft of cheque book or the ATM Card.
The customer acknowledges that nothing in these Terms and Conditions shall be construed
as being a warranty or a representation by the Bank of any guaranteed profits in respect of
funds mobilized on the basis of Mudaraba.
19.3. The customer is aware that all deposits in the Mudaraba pool are exposed to potential
losses arising out of a loss incurred in respects of assets in the Mudaraba pool. Any losses
incurred by the Mudaraba pool in a Profit Allocation Period shall be borne solely by the
Customer (in the capacity of Rab-ul-Maal). If however, the Bank has also invested its own
funds in the Mudaraba pool as Shareek then such losses shall be shared between the
Customer and the Bank proportionately in accordance with the respective amounts invested
by the Customer and the Bank.
20. ATM Services
The Bank may, at its sole discretion, and subject to applicable charges issue ATM Card to
the customer to access the ATM Service.
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The ATM Service shall be subject to the ATM Terms and Conditions.
The customer will be responsible to keep itself fully informed and updated with regard to
ATM Terms and Conditions.
In case of a joint account with either-or-survivor(s) operating instructions, the ATM Card
shall be issued only in the name of one signatory to the account.
Miscellaneous
Zakat and Taxes
Zakat and Withholding Tax and / or other tax (es) levied from time to time shall be
deducted as per prevailing laws of Pakistan. All amounts recovered by the Bank as
additional amounts in relation to a Saving Account shall be paid by the Bank into the
Charity Fund.
ZAKAT is leviable on the assets as described in the Zakat & Ushr Ordinance 1980 (as
amended from time to time) on balances which will fall within the definition of
zakatable assets as notified by the Government of Pakistan on Valuation date each year,
provided Declaration (original / attested photocopy) for exemption from compulsory
deduction of zakat is filed on the prescribed proforma (CZ-50) in the prescribed manner
one month preceding the valuation date except in the case of newly opened accounts.
Charges and Expenses
Charges for services provided by the Bank shall be levied according to the Schedule of
Charges. Charges for transaction on foreign currency accounts will be recovered in
foreign currency only.
The Bank will not obtain any prior permission from the customer for debiting customer’s
account for any expenses, fees, commission, profit, Zakat, tax, stamp duty, excise duty,
etc. payable to the Government (or what so ever) arising out of any dealing between the
Bank and the customer.
The Bank may, without any further express authorization from the customer debit
customer’s account maintained with the Bank for the amount of any or all losses, claims,
damages, expenses or other amounts which the Bank may suffer, sustain or incur as a
consequence of acting upon any of the customer’s instructions.
Amendment in Rules
The Bank reserves to itself the right to amend, alter or add to any or all of these Rules
through an advertisement in a newspaper or by means of a notice exhibited in the Bank’s
premises as thirty (30) days advance notice prior to such changes take effect there after
such amended, altered or additional Rules shall be deemed to be binding on all
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concerned. However, in case of any dispute, matter should be referred to SBP and the
decision of SBP will be final and binding in that case.
Legal
These Terms shall be solely governed by the substantive and procedural laws of
Pakistan. Courts all over Pakistan shall have exclusive jurisdiction in respect of any
dispute relating to any matter contained herein.
Stop Payments
All stop Payment instructions will be accepted in writing and signed by the account
holder(s).
Change of Address
Any change in the address of the account holder should immediately be communicated
to the Bank in writing so that any future correspondence may be made to the new
address. The post office and the agents for delivery should be considered agents of the
account.
Transfer of Account
An account may be transferred, on a written application by the account holder, from one
branch of the Bank to another on any working day, free of charge without affecting the
Profit / Loss position account.
However, the account, holder shall be required to submit fresh Account Opening Form
and complete all necessary formalities for opening of account at the Branch where his /
her account has been requested to be transferred.
Data Protection and Disclosure
The Bank shall make endeavors to preserve the secrecy of the account of the customer.
Nevertheless, the customer hereby expressly authorizes the Bank to disclose the
information if such is required by any investigating agency, any government agency or
such person as the Bank feels that such disclosure is necessary.
Issuance of Statements
A statement of account is issued to all customers of the BOP. Now a day these statements are
sent on the request of the customer. By this statement the customers get the information of
their account. Usually, the auditors of the big companies send letter for statements of
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company or person account in order to know the detail of the account. Then bank issues
them the statements of account and takes charges for issuing such statements.
B) CASH DEPARTMENT
Cash department is the most important department of the bank. This is sensitive department
of the branch; no other person is allowed to enter in the premises of cash department. It
receives cash from the customers and then deposits it into their accounts and maintained their
balances.
Books Maintained by Cash Department:
Scroll Book:
When the cash is received at the counter it is recorded in the scroll book
Paying Cash Book:

Cashier makes entry in the paying cash book when cash is paid. The amount is paid and
cheque number is written on it.
Token Book:
When any cheque or any negotiable instrument is presented it is recorded in the token book
then token is issued. Token number, account number, amount and cheque number is written
on the token book.
Cash Balance Book:

Consolidated figure of receipt and payment cash is entered in cash balance book.
 Functions Performed by Cash Department:

Cash department performs two main functions
 Cash Deposits
 Cash Payments
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Cash Deposits:
Cash officer receives cash along with pay-in slip from the customer. He checks if the deposit
slip is properly filled up containing title of account, account number, date and amount in
words and figures. He also verifies signatures with specimen signature card. Detail on scroll
book and cash receipt voucher should be the same. Cash is received by the cash officer, twice
counted and matched with the deposit slip. The cash details are written on the back of the
deposit slip and are also entered in the scroll book/ cash receiving register. Cash received
stamp is affixed on the deposit slip along with the signatures of the cash receiving officer.
Deposit slip is credited and posted in the concerned account in the system.
Payment of Cheque:
Customer presents the cheque to officer he first of all checks the balance in the account of
the customer then the date, amount in words and amount in figures, payee’s name crossing if
any, account number,cheque serial number and signatures of the customer. Account is
debited and then the officer cancle the cheque. It is posted in the system and posting stamp
and transaction number is affixed on it. Cheque is handed over to the cash officer for
payment. One more signature on the back of the cheque to match with the first one, and then
cheque is payed to the payee. Cash detail is written on the back of the cheque. Cash paid
stamp is affixed on the cheque. Entry is passed in the paying cash book.
If payment is of Rs. 50,000 the cashier can make it on its own. If the amount is greater than
Rs. 50,000 to Rs. 100,000 the cashier and officer verify the cheque and sign it so, the
payment will be made. But, if the amount is greater than Rs. 100,000 to Rs. 1000,000 the
operation manager also verify the cheque and sign it so, the payment will be made. If the
payment is greater than Rs. 1000,000 the branch manager verify the cheque and sign it,
otherwise payment will not be made.
DEPOSITS DEPARTMENT
Function of deposit department is to collect cash from the customers and to deposit it into the
accounts, maintained by them. Their classification is based on the duration and purpose for
which the account is maintained.
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The bank does not receive these deposits for save keeping purpose only, but they accept
deposits as debts. When banks receive deposit from a customer, the relationship of a debtor
and creditor is established where by the customer become the creditor and the bank a debtor.
When the bank receives amount of deposit as a debtor, it becomes the owner of it. It may,
therefore use it as deems appropriate. But there is an implicit agreement that the amount
owned would be paid back by the bank to the depositor after a specified period.
These deposits are lent out to different parties. The larger the difference between the rate at
which the deposits are borrowed and the rate at which they is lent out the greater of the profit
margin of the bank. Furthermore, the larger the deposit the larger will be the funds available
for employment; larger the funds lent out the greater will be the profit of the bank.
Nature of Deposits
Following type of accounts are maintained for deposit purposes:
 Current Deposits
 Profit & Loss Sharing Accounts
 Term Deposits Account
 Foreign Currency Accounts
Current Deposits:
In this type of account the client is allowed to deposit or withdraw money as and when he
likes. Because of their nature, these deposits are treated as the current liabilities of the bank.
There is not profit on such deposits. Usually this type of account is opened by the business.
Profit & Loss Sharing Account:

This type of accounts is one step towards the Islamization of banking system in Pakistan.
There are two types of PLS Accounts.
 PLS Saving Account

 PLS-TDR (Profit & Loss Sharing Term Deposit Receipts)
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PLS saving accounts can be opened with the minimum sum of Rs. 100 and PLS-TDR account
can be opened for a sum of Rs. 1000 or above. Profit is paid on both types of the PLS account
on half yearly basis.
Under PLS saving account the depositor undertakes to share profit or loss on the deposits
earned or sustained by the bank. Secondly the bank is at the liberty to invest the funds of the
deposits in any avenue, it deems fit. The PLS deposits are invested in non-interested
channels.
Term Deposits Account:

Fixed or time deposits are the major source of fund for commercial banks. The rate of interest
on fixed deposits is higher than that of saving deposits and it varies time by time. The longer
the period for which the amount is kept the higher the rate of interest is. The holder of term
deposit account cannot issue cheques for the withdrawal of the amount.
The Bank of Punjab deals with two types of Term Deposit Accounts:
 Short Notice Term Deposits (SNTDs)

 Term Deposit Receipts (TDRs)
Short Notice Term Deposits (SNTD)

This kind of deposit is for a short period. The depositor may withdraw his deposit at
any time by giving seven days notice to the bank. This type of deposit facilitates the depositor
to withdrawn his amount with interest of the deposited period.
Term Deposit Receipts (TDR)

This type of deposit is same as the SNTD. The difference is that SNTD is for short
period (7- 30 days) while TDR is for long period (1 month up to 5 years).
Foreign Currency Account:

These are the accounts in which deposits are accepted in foreign currency. These deposits
may be kept either in saving or in current foreign currency account.
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CLEARING DEPARTMENT
Clearing is the most important department of the bank .This department receives the cheque
and other negotiable instruments drawn on local branches of other banks. State bank of
Pakistan has clearing house, in which cheque, and other negotiable instruments are brought
by each local bank representatives. Clearing settlement is made by debiting and crediting the
banker’s account, the daily difference in the clearing between banks may considerable and
many differences are adjusted by means of debit and credit entries in the respective account.
Clearing system is help full for both the customer and saving currency, time and labor.
Clearing
Any instruments which drawn on BOP branches and other banks in same city that’s
instruments are called clearing. A clearing and date stamp is affixed on these instruments.
These are two types of clearing:
 Inward Clearing (Paying Bank)

 Outward Clearing (Presenting Bank, Collecting Bank)
 Within Bank Clearing
INWARD CLEARING
Inward clearing means the cheques which are to be honored by the bank but which are
received through other banks representatives. These are the cheque, which BOP account
holder gives to such account holders who have their accounts in other banks other than BOP.
So those banks submit their cheque books to NIFT.
NIFT (National Institutional Facilitation Technologies (Pvt) Ltd):

Now a days a specialized institution named as NIFT performs services of clearing. Each bank
collects the cheque on behalf of their customers of other banks and hands over this cheque to
NIFT. When NIFT collects the cheque in the evening from every bank, then at night all
cheques are sorted according to their banks and then according to their branches. Then
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cheques of one branch e.g. of BOP Gulshan-e-Ravi are kept in one bag with the detail
summary of cheques e.g.
number of cheques, total number of cheques and amount. This bag is locked with the special
plastic key.
Next day before bank starts its work at 9:00 am the NIFT representative gives this bag to
clearing department head and returns. Clearing department head sorts these cheques
according to PLS, CD, PO, D.D and counts that cheques number are equal to summary
cheque number. Then he checks that cheques are in order, clear writing, signature of account
holder, three stamps, amount in words and figures, date, no limitation, and bank name.
If he finds any fault, he returns that cheque attaching memorandum, which comprises of date,
Cheque #, amount, Reason of returning. After all this the bank officer enters these cheques in
inward clearing register regardless of returned cheques. Then these cheques total is matched
with NIFT summary.Then these cheques are entered in computer and debited the accounts of
those account holders who issued these cheques. In posting when the officer finds that
account holder has not sufficient fund or signature are not verified by SSC then he returns
these cheques with memorandum.
After doing all these cheques are again kept in that bag which is locked with special plastic
key. With returning cheques a pink colour slip is attached which has the title “Clearing
Return”. After half an hour NIFT representative comes back and takes this bag back and
goes away. The officer circles with red pen in register those cheques which are returned and
writes “R”.
OUTWARD CLEARING
Outward clearing means the collection of cheques on behalf of customers. These cheques are
those, which are drawn on other banks. This clearing can be local or out station. When
customer brings such cheque, he fills the deposit slip. He keeps counterfoil and the remaining
part is stapled with the cheque.
The bank officer stamps the crossing stamp. He also stamps the clearing stamp of next day
and endorsement stamp. In this clearing the bank receives the cheque whole day and enters
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those cheques in outward clearing register which has following columns: date of next day,
Serial #, Cheque #, Amount, Slip #, A/c # of Payee.
After this, these cheques are totaled and bundles of 50, 50 cheque are made attaching a list
which is named add list. Then two debit or credit vouchers are made with title of suspense
account and the total amount is entered in these vouchers. Then these cheques are covered
with clearing slip issued by NIFT. And these cheques are kept in bag locked with key and in
evening NIFT representative comes and takes that bag and returns.
Within Bank Clearing
If the cheques are drawn on same bank or on other branches of this bank then it is called
clearing within bank. Such Cheques are marked with transfer bank.
Functions of Clearing Department

 To accept transfer delivery and clearing cheques from customers of the bank and to
arrange for their collection.
 To arrange the payment of cheques drawn on the bank and given for collection to any
other branch of BOP or any other member or sub member of local clearing house.
 To collect amount of cheques drawn on members, sub members of the local clearing
house, sent for collection by those BOP branches, which are not represented at the
local clearing house.
Types of Cheques Collected By Clearing Department
Transfer Cheques:
The cheques which are collected and paid by the same branch of BOP.
Stamps on Transfer Cheques:
 Transfer stamp
 Computer posted
 Crossing/ Branch stamp
 Payee account credited
 Signature verified
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Transfer Delivery Cheques:
The cheques which are collected and paid by two different branches of a bank situated in the
same city.
Clearing Cheques:
The collecting bank can receive the amount of cheques from the paying bank from the
clearing house on behalf of the customer’s account.
Stamps on Clearing Cheques:
 Crossing/ Branch stamp

 Payee account credited
 Signature verified
 Clearing stamp of next working day
REMITTANCE DEPARTMENT
Remittance is a major function of the bank. It is the transfer of money from one place to
another place or same person. By proving this service to the customers the Bank of Punjab
earns a lot of income in the form of service charges.
The Bank of Punjab deals with the following type of remittances:-
 Pay Order (P.O)

 Demand Draft (D.D)
 Mail Transfer (M.T)
 Telegraphic Transfer (T.T)
Pay Order (P.O):

Pay order is just like cash. It is an instrument, which is payable on demand and only
presentable within the city. Pay order is also called the banker’s cheque, drawn upon the
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issuing branch itself. If someone wants to make payment to some other person he can make
payment through pay order slip.
Importance of P.O
The main advantage of pay order is that it can not be dishonored by the bank. When payment
is required to make with in the city we can take this service because in case of cheques there
is a possibility of dishonoring by the bank but pay order can never be dishonored.
Procedure of Pay Order:
An application form is given to the customer to fill. Two signatures are taken on the form one
for request and other for receiving the instrument. All the particulars of application form are
checked and bank commission charges and withholding tax is written on the application
form. If customer is maintaining his account with the branch, he can give cheque for total
amount of instrument plus bank charges. Cheque and application form is then given to the
officer. Officer post the
cheque and sign the application form in case of payment received. If the customer wants to
pay cash, then cash is deposited by the customer along with the bank charges and withholding
tax.
Application form is then given to the officer for issuance of instrument. He enters all the
particulars of the application form in the system and computer gives an auto control number
to the instrument. Print out is taken on the block of payment order. Two authorized officers of
the branch then sign it. Instrument is then protectographed, and given to the customer.
When instrument is presented for payment, it is posted in the system and canceled by the
remittances incharge after proper security.
Demand Draft (D.D):

Demand draft is an instrument given by one branch of a bank on behalf of customer to
another branch of the same bank to a certain amount to the certain person. It is made by the
bank, given to purchaser against cash or cheque. If a person wants to make payment from one
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city to another then he can make payment through D.D. bank charges commission for
performing it according to the schedule rate, which is revised after every 6 months.
Procedure of Demand Draft
1. A draft voucher is filled which contains the, name of the parties involved, date,
amount to be sent, account number (if D.D is crossed).
2. A credit voucher is filled in order to get the excise duty and exchange commission.
3. The sender deposits the total amount.
4. Then the cashier sends the cash receipt voucher to the accounts department and the
account records the amount paid in his cash scroll.
5. Accountant gives the D.D leaf along with the D.D voucher to his assistant who
records the sender’s name, amount and receiver’s name. After writing all the
information in the D.D register he gives it to the officer along with the D.D for
authentication.
6. After authentication the D.D is handed over to the sender and bank sends the advice to
the concerned branch. So when the party presents the D.D in the concerned branch its
payment could be made.
Cancellation of D.D
In some cases the D.D is not presented for payment at the drawer bank but it is presented for
cancellation at the issuing branch. The payment of such draft is to be made to the purchaser
only and it is called payment by cancellation. The drawer branch is also informed about the
same to make the entry in its book.
Parties involved in the Demand Draft
The following parties are involved in demand draft;
 Purchaser or Sender
The purchaser is the person who sends the money to a particular person payable at a certain
branch.
 Issuing or Branch
The branch from where the demand draft is issued to another branch of the same bank.
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 Drawer Branch
Branch in which the draft has drawn and called upon to pay the amount.
 Payee
The person who is entitled to receive the amount after presenting the demand draft in the
drawer branch.
Mail Transfer (MT):

It is the transfer of money from one branch to another branch of the same bank through mail
service. In mail transfer there is no need of advice as the amount is directly credited to the
receiver’s account.
Procedure
1. First a voucher is filled in whish the sender writes the amount to be sent, name,
account number of the receiving person with the branch name and date.
2. A credit voucher is filled in order to deduct exchange, postage charges according to
the amount of the mail transfer.
3. The sender deposits the total amount in the cash department.
4. The cash officer gives the vouchers to the officer after affixing received cash stamp
and writing the amount in red ink.
5. Then the officer writes the amount paid in the cash scroll and gives the MT to his
assistant.
6. MT leaf is filled according to the information provided in credit voucher. He also
writes the same information in the MT register. Then he gives the MT leaf and MT register to
the officer for authentication.
BILLS DEPARTMENT
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This department deals in bills for collection for all kinds such as cheque, draft, and pay
orders, call deposits etc. with outstation branches of BOP or with other banks. It provides
service to their customer to get payment from the nearer bank at nominal charges.
Types of bills:
There are two types of bills:
 Clean Bills
 Documentary Bills
Clean Bills
These are negotiable instruments sent for collection on behalf of customer i.e. cheques, drafts
etc
Documentary Bills
These are the bills accompanied by documents such bill of lading, trust receipt, railway
receipt, sales invoice, receipts of courier service etc having title on behalf of their customer.
If payment is made other than cheques then this mode is used. It is an agreement between two
parties. But in 99% cases clean bills are used
Types of bills for collection

There are two types of bills for collection:
 Outward Bill for Collection (OBC)
 Inward Bills for Collection (IBC)
Outward Bills for Collection

Cheques and other instruments drawn on other bank in other cities are known as Outward
Bills for Collection. Bills department receive cheque or other of bills from its client whose
account must be opened in that branch. The checking officer of bills department will cross the
cheque with special bank stamp before forwarding the cheque. That branch receives payment
from the other bank and credits our branch and we credit our customer a/c.
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OBC register is also maintained for proper record keeping of outward bills. This register is
updated two times once at the time of receiving bill from clients and the other when the
confirmation advice of this cheque is received from the payable branch.
Inward Bills for Collection

Bank receives cheques, draft and other instruments for collection from branches of other
banks, which are not included in local clearing house arrangements. They are Inward Bills for
Collection. In it, instruments come and funds go out. Therefore it is unfavorable. The
branches which receive bill have to verify these bills for payment. The party account must be
opened in that branch. The responsibility of this branch is to verify the bills for collection
with in three days and send the advice to the originating branch.
In case of verification of bills is approved, banks debit the account of the respective account
holder and send a debit advice to the originating branch and at the same time credit the head
office account for inward bills IBC register is maintaining for keeping the proper record of
the bills.
Receiving Foreign Payments

Customer can receive its amount from UAE, Xpress money, Aftab money exchange and
western union.
CNIC Is Must For Payment:
 For payment original CNIC and copy of CNIC is required.

 On CNIC copy customer has to write: Pin code, Amount, and Contact number
If CNIC is expired no payment is given to customer.
Procedure For UAE Express Money:
Requirement:
 Copy of CNIC of customer and original CNIC.

 16 digit code.
Step:
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 Connect to www.expressmoney.com
 Click receive now
 Enter pin code
 Match data of customer
 Take print of verisys of customer and payment receipt
 Attach ID card copy
 Take signature of customer on payment receipt
 Put stamp of signature verified and original CNIC stamp on copy of CNIC
 Enter the amount in system module 30789 and send that voucher to print and
transaction number is given by system is written on payment receipt.
 Debit voucher is authenticated and sign by the officer dealing with the whole
procedure. If transaction is 2 million or more then it is authenticated by Operation
Manager.
 Two signatures of customer are taken on back of voucher then customer take its
payment from cash counter.
At the end of day entry of payment which is already entered in system the advice of all
payment is printed and has signature of operation manager and head of outward and foreign
payment dept.
ACCOUNT DEPARTMENT
Account department is the backbone of a bank. It plays a vital in performing different

functions of a bank. Accounting books of different departments are maintained under this
department and with the help of these, accountant prepare the monthly quarterly,
semiannually and yearly financial statement and order statement of the whole bank. All the
transaction taking place is recorded daily in the books of accounts and in computerized
ledgers.
For every transaction there is Voucher prepared and through these vouchers contra entries are
passed under different head. Good working of accounts mainly depends on the voucher
system. Accounts department is responsible for proper handling and maintenance of vouchers
of different department
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Functions of Clearing Department
Accounts department performs the following functions
Reports
It generates reports like Statement of Account Activity (a report on the activity of all
accounts at Bank, Statement of Affairs (a report on the assets and liabilities of Bank,
Statement of Profit & Loss (a report on the income and expenditures of Bank. These reports
can be generated at daily, weekly, monthly, quarterly or yearly basis as required by the bank.
Income and Expense

The department also needs to calculate the revenues and expenses, control expenditure and
forecast profits every month.
Storage of Records
Accounts Department also has the duty to store vouchers and system generated reports.
Activity Checking
Daily activity checking and monitoring is done by the accounts department of the whole bank
Stages of activity checking:
There are four stages in which activity checking takes place:
 Collecting vouchers, cheques etc from all departments
 Sorting Vouchers
 Checking Activity
 Packing
Collecting Vouchers:
The first stage of activity checking is collecting all vouchers, cheques, DD’s, pay order, pay
slips etc from all departments of the bank. Mainly vouchers come from the operations
department. After collecting these vouchers etc from the departments, we need to check if all
stamps are stamped on these vouchers etc.
Sorting Vouchers:
After all vouchers are collected, they need to be sorted into eight categories:
1. Customer Debit: Includes debit vouchers and cheques
2. Customer Credit: Includes credit vouchers and credit slips
3. Income: Income vouchers
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4. Expenditure: Expenses vouchers and payment vouchers
5. Others: Includes vouchers about excise duty, FED, teller, ATM, payables etc
6. Online: Contain online vouchers and online credit slips etc
7. Head Office (H.O): Includes HO vouchers and DD advices
8. Bills Payable General (BPG): Includes vouchers and DD, Pay orders, Pay slips
etc
Checking Activity
After sorting takes place, daily activity is checked using the statement of account activity,
which contains all daily activity of the accounts in the bank. Activity checking is done by
seeing if the values and account numbers in the sorted vouchers match that of the activity and
whether or not there is any missing activity that is not in the vouchers.
Packing
After the activity is checked, all sorted vouchers are counted, both debit and credit and then
packed by totaling the vouchers.
 10 ) Work done during Internship Tenure
During my 6 weeks at the branch I have experienced different aspects of
banking. Basically it was general banking which is usual in every branch of all the
commercial banks.
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I have ingested all of the banking hours there and have a close eye how the work has been
done. The normal banking time is 9:00 am to 5:00 pm where as in Ramdan; the timing is 8:30
am to 3:00 pm.
BOP Nowshera Virkan branch deals with:
1. Deposits
2. Account Opening
3. Remittances
4. Clearing
5. Accounts
6. Utility Bills Collection
DEPOSITS DEPARTMENT
I spend first week of my internship in deposits department here I perform the following
tasks:
1. Issuance of token
2. Posting of cheques in the computer
3. Posting of cash receipts vouchers in the computer
4. Authentication of cheques, receipts, and vouchers
5. Transfer of utility funds
REMITTANCE DEPARTMENT
For Second week, working in remittances department, under OGII Mr. Nasir Hussain the
duties assigned to me included:
1. Entry of remittance instruments in the system & preparation of physical instruments

2. Entering the data into the system many times to understand the process of making
drafts and pay orders.
3. Making the entries (head office credit and party account debit) in daily book and daily
summary sheet and at the end balancing the sheet. The process is rather a critical one
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because the balances of these sheets must tally with the printed balances of computer
each day.
4. Make credit and debit vouchers of charges recovered on remittances, as advised to me
by the officer.
5. I have made and processed some telegraphic transfers during my training session.
6. Maintaining the balances of daily issued and paid Pay orders into the daily working
register.
7. I was also trained how to respond to telegraphic transfers which are received by the
bank from other branches. These are received through TCS at early working hours.
An action is required after receiving these transfers.
The account of the creditor for whom the telegraphic transfer are sent, is credited and a
message is sent to the originating branch that we have credited the account of the relevant
customer. A credit voucher is made for crediting the account of customer.
ACCOUNT OPPENING DEPARTMENT

I spend third week of my internship in accounts department with Mr. M. Rizwan Rasheed
and Mr.Usman . Accounts opening department includes opening and closing of accounts,
issuance of cheque books, record keeping, and issuance of ATM cards.
Steps for Opening an Account:
 Introduction of customer
 NADRA Verification
 Filling out the account opening form which contains:
 Title of account
 Address
 CNIC number
 Next of kin’s CNIC number
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 Signature and thumb print of the applicant
 Amount deposited (minimum 100/- required)
 K.Y.C. ( know You Customer) is an important section in which depositor’s

additional information is taken like type of customer, education, source of funds,
expected monthly income etc.
 And after all the bank internal inquires, the cheque book will be issued to the
customer within 10 days.
Duties and Responsibilities:
My duties and responsibilities in account opening department include:
1. Providing the customer with account opening form,

2. Filling in the form for customers who can’t fill in themselves and then use the appropriate
bank stamps to complete these forms.
3. I also had to do a ‘Verisys’, a verification system started by NADRA on the CNIC of the
new account opener. A ‘Verisys’ tells, if more information pertaining to the customer is
needed to open the account or not.
4. Take print of NAB and OFAC to check the list either the person is black list or not.
5. Guiding some customers about the requirements of opening an account
6. Entering the new record into account opening register
7. Stamping the account numbers on the manual cheque book
8. Entering the new cheque book serial numbers along with account numbers into cheque
book register
9. Filling in the application form requesting issuance of printed cheque books to NIFT, at
the end of day
10. Preparing and entering the letter of thanks into DAK dispatch register
 To Customer:
When a new customer has opened his account in the bank, the bank writes a letter
of thanks for account opening and posts it to the customer.
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 To Introducer:
The bank writes a letter of thanks to introducer regarding his service for a new
account opening customer.
11. Receiving the authority letter from persons and obtaining their receiving on the letter
make entries in cheque book register and issue the cheque book to that person.
12. I was to assist a customer towards the whole process of stopping payment. To fill a form
which is same as a cheque book requisition form and an indemnity form, stating no
responsibility on behalf of the bank if any illegal payment is made before the time of
announcing a cheque book lost.
CLEARING DEPARTMENT
I spend fourth week of my internship Clearing is the banks function in which the cheques of
other banks are collected to deposit into the customer’s account. The clearing department
receives all kinds of cheques drawn at different banks and sent them to the clearing house.
The clearing house in State Bank acts as a clearing agent between the banks clears and
verifies all kinds of cheques. All the banks have their accounts with the SBP for clearing the
balances. The main branch of the bank acts as the clearing agent for the branches. Main
branches of BOP at all the cities deal with the NIFT. Each bank, after collection of all the
cheques sent them to their respective branches for clearance.
Unfortunately, my branch has no defined clearing department. Mr.Khushnood Sara has to

deal with clearing procedure and also received the mail (Dak) by courier for the branch.
Duties and Responsibilities:
1. The cheques and drafts are collected by the customer service officer. I use to enter the
daily collected cheques numbers, their amounts and relative bank in the clearing
register. It is necessary that it should be a crossed cheque as it will be deposited in the
customers account.
Those cheques which are of outstations branches are sent to their relative bank’s branch via
TCS at the end of the working hours. The drafts are sent to the relative bank’s main branch.
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When these are returned in almost three days, then we deposit the cheques amount in
customer’s account because it’s the confirmation process.
2. I use to register the return cheques in a register

3. When cheque is presented in BOP Gulshan-e-Ravi to be deposited different stamps are
put on cheque before their lodgment in outward clearing.
Clearing held as following:
 Crossing the cheque
 Clearing stamp
 Endorsement stamp (payee’s account credited)
 NIFT
 Send report to the bank
 Delivered cheques to the respective bank
As part of my internship, I was responsible to collect cheques from the customers that they
deposited, put the official stamps on the different kinds of cheques.
ACCOUNTS DEPARTMENT
I spend fifth week of my internship in accounts department.
 I had to do daily activity checking, collecting vouchers, cheques etc from all
departments, sorting vouchers according to their categories, checking activity,
packing
 I calculated debit and credit vouchers for head office and noted them in their voucher
covers.
 Sorting the cheques of different accounts and arrange them transaction wise. I
arranged the daily vouchers 3 times a day. Their arrangement was such that first the
PLS vouchers, then CD vouchers, and then they band in the same pattern with a
voucher cover. Ticking of voucher and the next day their entry in the register is also
an assigned task.
 I made the product sheet on excel. These sheets calculated the semiannual profit of
individual client. There were statements being given to me from whom I had to select
the amount, profit etc and enter it in a prepared work sheet.
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UTILITY BILLS COLLECTION
Here, I worked under the guidance of Mr. Nasir Hussain for three days and collected utility
bills include the bills issued by the LESCO, WASA, PTCL, and SNGPL and post them into
the system and also prepare of billing scrolls. These bills received by bank during working
hours from general public. This branch is very busy in this regard.
11 ) FINANCIAL ANALYSIS:
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Ratios:
All the figures given below are in millions.
Earning Asset to Total Asset Ratio:
𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝐴𝑠𝑠𝑒𝑡/𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡=546855 / 991665

= 0.55
The earning asset of bank of Punjab are 546855 and total
asset are 991665 so its earning asset to total asset ratio is 0.55.
Return on Earning Asset Ratio:

=𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒/𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡=25503/991665
= 0.026
The net income of bank of Punjab is 25503 and its total
asset are 991665 so its return on earning ratio is 0.026.
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Net margin to Earning Asset=
𝐼𝑛𝑣𝑒𝑠𝑡 𝑅𝑒𝑡𝑢𝑟𝑛 − 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐸𝑥𝑝 / 𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝐴𝑠𝑠𝑒𝑡 =(36149 – 35977)/54685

= 0.00031
The investment return of bank of Punjab is 36149 and its
interest expense are 35977 and its earning assets are 546855 so
its net margin to earning asset ratio is 0.00031.
Loan Loss Coverage Ratio:=
𝑃𝑟𝑒𝑡𝑎𝑥 𝐼𝑛𝑐𝑜𝑚𝑒 + 𝐿𝑜𝑎𝑛 𝐿𝑜𝑠𝑠𝑃𝑟𝑜𝑣𝑖𝑠𝑖𝑜𝑛 / 𝑁𝑒𝑡 𝐶ℎ𝑎𝑟𝑔𝑒 𝑜𝑓𝑓𝑠 =

(25503 + 19164 ) / 1649
= 27.08
The pretax income of bank of Punjab is 25503 and its loan
loss provision is 19164 and its net charge offs are 1649. Its loan
loss coverage ratio is 27.08.
Deposit Time Capital Ratio:=

𝑇𝑜𝑡𝑎𝑙 𝐷𝑒𝑝𝑜𝑠𝑖 / 𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟 𝐸𝑞𝑢𝑖𝑡𝑦 = 734596 / 11451
= 64.15
The total deposits of bank of Punjab are 734596 and its
equity is 64.14. Its Deposit Time Capital Ratio is 64.15.
Loan to Deposit Ratio:=

𝐿𝑜𝑎 / 𝐷𝑒𝑝𝑜𝑠𝑖𝑡 = 137960 / 734596
= 0.188
The Loan amount of bank of Punjab is 137960 and its
deposits are 734596 so its loan to deposit ratio is 0.188.
Price Earning Ratio:=

𝑀𝑎𝑟𝑘𝑒𝑡 𝑉𝑎𝑙𝑢𝑒 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟 / 𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝑝𝑒𝑟 𝑆ℎ𝑎𝑒𝑟 = 89.80 / 13.08
= 6.87
The market value of bank of Punjab share is 89.80, its
earning per share is 13.08 including its capital gain. So its Price
Earning ratio is 6.87.
Dividend Yield Ratio:=

𝐴𝑛𝑛𝑢𝑎𝑙 𝐷𝑖𝑣𝑖𝑑𝑒𝑛 / 𝑃𝑟𝑖𝑐𝑒 𝑃𝑒𝑟 𝑆ℎ𝑎𝑟𝑒 = 7.12 / 89.80
= 0.0792
The Dividend per share of bank of Punjab is 7.12 and its
market price is 89.80 and its dividend yield ratio is 0.0792.
Dividend Payout Ratio:=

𝐷𝑖𝑣𝑖𝑑𝑒𝑛 / 𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 = 4360 / 25503
= 0.1709
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The total dividend of bank of Punjab is 4360 and its net
income is 25503 and its dividend payout ratio is 0.1709.
Market to Book Value Ratio:=

𝑀𝑎𝑟𝑘𝑒𝑡 𝑉𝑎𝑙𝑢 / 𝐵𝑜𝑜𝑘 𝑉𝑎𝑙𝑢𝑒 = 89.66 / 85.80
= 1.044
The market value of bank of Punjab share is 89.66 and its
book value is 85.80 so its ratio is 1.044.
MARKETING STRATEGY
The target market of the branch is all the salaried

persons, labors house wives, retired people and all those type
of people who want to save cash for their future life. Whereas
the big business men and big investors, financers can deposit
and withdraw their cash.
• As internee I saw that how this branch creates public relation

with others to contribute and bring about positive changes in
the area. Sometime branch organize concerts and games for
special children's who cannot participate in any game it mean
organize special children concert and also invited their parents
to provide information about the bank so this is a way to create
public relation. A Musical evening was also arranged for
children's; most of those students never had an opportunity to
participate in any such lively event. This musical event creates a
will to do something and this day makes an unforgettable day
they will remember for many months to cone.
• Sometime branch organize matches between different villages

and support finance and gifts and some time the branch
distribute pamphlets.
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• At the time of independence branch organize a big hall and
invited different schools children and their parents the students
perform their performance and after the end of the day they
distributes gills and provide entertainment to the whole crowd
and describe little address about the performance of the bank
and there is mention about the benefits of the bank.
Sometime branch organize quiz competition among different
schools students all the faculty member and parents of the
children are also invited the look the children performance and
enjoy it and after the end prizes distribution ceremony and little
address with crowed about the branch and the spending time
with village so from this way branch done his publicity.
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12 ) SWOT analysis:
Is a short form for strengths, weakness, opportunities, and threats.
It is an analysis of internal strengths and weakness of an organization as well as external

opportunities and threats. SWOT analysis affects the organizational performance. The
overall evaluation of a company strengths, weakness, opportunities and threats is called
SWOT analysis. An organization's mission is accomplished by best strategies in SWOT
analysis by:
Taking advantage of organizations opportunities and strengths.
Reducing effect of threats.
By avoiding the weaknesses.
Organizations missions are used as a context and SWOT analysis is one of the most
important steps in formulating strategy; managers avoid weaknesses and assess internal
strengths.
STRENGTH:
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BOP bank officers are considered as the most able professionals in the banking world. In
my observation BOP officers interact with the customers as they are their personal friends
and used to solve their problems as their own.
The customer's perception for BOP is very high due to compassionate and personalized
services of the officers. Customers feel secure while dealing with BOP and they also have
trust.
The branches of BOP are opened in commercial areas in order to save customers from
facing problems to reach the bank.
The security system is very good in BOP.
Employees are given with good facilities.
Internal computer system in BOP is very reliable and easy to use. Every information is
computerized.
There is properly maintained data.
BOP is 51% owned by Punjab government. BOP has an asset base of Rs. 165 billion and
total deposits of Rs. 138 billion.
The management prepares a financial statement which shows the state of affairs, cash
flows, the result of operations of state of affairs, & equity changes.
BOP follows the timelines specified by SBP for implementation of recommendations of

Basel-II committee for risk management and management.
BOP is adopting measures to monitor and minimize risks that are related to banking
industry.
WEAKNESS:
There is lack of proper internal control in BOP which is pointed by the auditor in
his review.
BOP has number of products and services more than commercial banks but any
advertisement on electronic media is not given.
During my internship, I observed that employees have a lot of burden of work.

The work should be distributed equally between the employees on the basis of
their capabilities and their post
Selection of employees should be biased.
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There is a lot of concern of SBP on the bank's control that is the weakness of
BOP.
Due to more influence of the government there is negative behavior of the staff
with the customer.
Staff is not too much motivated due to no proper rewards or less remuneration.
There is no time management principle for customer care.
There is lack of proper internal control.
BOP has negative profitability every year as its director and presidents played
trick with the bank by involving themselves in a fraud of billion of rupees.
OPPORTUNITIES:
There can be a great increase in deposits of BOP by commencement of new schemes.
There should be emphasis on e-banking.
BOP should adopt the diversification, innovation and mission driven approach which are
keys to success.
A number of financial schemes like special deposit accounts that have unique features are
introduced by BOP. In past few years, deposits of BOP have been increased by 40%.
Information technology is the future of this dynamic world. So BOP should emphasize on
it. Like other foreign banks, bank can design universal account to enhance online
facilities.
BOP is satisfying customer needs. A number of products are introduced by BOP

especially in retail banking and customers are becoming more loyal to the bank. And due
to optimum prices and brand products, customers feel secure and convenient.
THREATS:
Credit crisis have an adverse affect on BOP.
BOP is facing a strong competition by other banks as business is growing at very high
speed.
Customers are lacking trust in BOP due to which deposit growth is slow.
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MARKETING ANALYSIS:
BOP has lack of promotional activities due to which marketing department is very weak. But
recently print media advertising is started which will increase customer base and helps in
developing BOP's reliability
BOP MARKETING MIX:
Product:
Products involved are Finance, customers, & agriculture.
Price:
Due to economic crisis price charged is high and the lending rate ranges from 18-19%.
The whole banking system is under the influence of price factor. So it is very important.
Promotion:
BOP is cutting down its cost by cutting off its advertising expenditures.
Place:
BOP does not involve middleman and sellers as it is selling its services and products
through its branches that are spread across the country.
MARKETS SERVED:
The following markets are served by the bank of Punjab.
Agriculture market:
Corporate customers.
Commercial customers that involves middle & low income group.
Household customers that involves low & middle income group.
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FINDINGINS
During my internship period, I had found the following weaknesses:
 Some employees in BOP just do the same job, they become master of that job but
they know nothing and or their knowledge about their job.
 Pay scale of BOP employees is less than other banks, which is an indication of
discouragement among employees.
 Employees don’t have direct access to higher authority. This creates a frustration
among employees.
 The size of almost all branches of BOP is very small which creates difficulty for both
the customers and employees.
 Some people in the bank are over burdened with work. For this the work should be
divided equally.
 ATM facility is only availBOPe in some branches.
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 13 ) RECOMMENDATIONS FOR THE BANK OF PUNJAB
Based on findings, I would like to suggest some recommendations to BOP which will
enBOPe the bank to compete with other banks more efficiently. These suggestions are based
on my experience with the bank.
 Many of the bank employees are just master in their own field. They don’t know the
job of other seats. It creates a problem for the Manager when any of the staff members
is absent. I would suggest that each employee should know the job of almost every
seat in his or her branch.
Specially, the old officers who are experienced in their relative fields don’t know
outside their working boundaries. They should have experience at all outlooks of
banking.
 Bank should revise its rewards and incentives systems. Proper incentives are to be
given to employees on their overtimes specifically on closing dates. Personal
achievements of staff members must be awarded.
 General look of the premises of internal/external should be clean and presentable.
 Following should be displayed on notice board:
 Opening, closing cash timing.
 List of prize bonds.
 Parking should be providing.
 Staff must look smart, energetic, enthusiastic, and eager to serve.
 There should be an information desk to provide the information and to receive the
complaints of the customer in the bank. There is no complaint box available in the
branch and not any person appointed to hear the complaints.
 BOP should start its operation in credit card. These cards are very helpful for the
ordinary customer in general and the business people in particular. To make it mores
secure and to eliminate the misuse of it, the management is required to keep proper
security against the card.
RECOMMENDAION FOR A BETTER WORLD RETAIL BANKING.
Page 90 of 98
RBG has been striving to capitalize Customers are always the top priority for Retail Banking,
and we offer a range of solution-driven and cost-effective products and services that cater to
all segments of society. We believe in excellence and innovation. RBG has been striving to
capitalize on the right opportunities for a mix of the population; we provide solutions!
With our strong presence through our wide spread network of 327 conventional branches all
over Pakistan, we offer a wide and innovative range of banking services, with a mix of value
added services like Automated Teller Machines and Virtual Retail Banking, known as Online
Banking. To facilitate overseas Pakistanis, we provide Home Remittances services in all
branches.
Our customers are what make us a true people’s bank. We offer our expertise to all segments
of the society, including dedicated products for senior citizens, ladies, agriculturists and
minors, besides various products for business concerns.
 RECOMMENDATIONS FOR HCC
Some recommendations for University of the Punjab Gujranwala Campusare:
 Educational tours should be conducted for better understanding of course

contents practically
 Hailey should introduce this degree in the market by conducting seminars in
different institutions and organizations so that people may get aware of it
 Hailey should arrange some meeting with the industrialist, bankers and other
top authorities of different companies just to inform them that their students
have capabilities to work in this challenging environment
 The specialization must also be offered in more areas like IT
Skills Acquired
During my internship i learned a lot of new things from the staff of bank. As working in the
bank was my first exposure to working environment so i learned m any skills during this
Page 91 of 98
period. All staff was very helpful and was very co-operative in improving my skills. The
skills i learned during internship are as follow.
Direct Customer Dealing:
While working in the bank i learned how to deal with the customer. Customers are of
different human nature and we have to treat every customer according to his nature.
Customer are the most important part of any organization. So it’s very important for
organization that how they talk with them and how they solve their problems. This thing i
learned very well during internship.
Communication Skills:
In practical field, i learned how to communicate with other people, with your colleagues with
your authorized and with your employs. I also learned who have the power and who reports
to whom. During my exposure to working environment of the bank i gained the practical
knowledge of how to communicate with different people.
Time Management:
While working, i also learned how to manage time in difficult situations and how to meet the
deadlines of various operations. All staff members were very efficient and co-operative in
this regards. Some other skills and knowledge i learned during internship are: account
opening procedure, how to operate lockers, some other financial terms and knowledge etc.
In the end i am grateful to all staff members who helped me a lot in improving my skills.
 14) CONCLUSION
Working with BOP bank was really a wonderful experience for me. During my internship,
although I got some limitation but I have learned a lot about the corporate world. Though, it
was my first practical training but it was really a great time to work with such a bank. BOP
has an edge over other local banks, as it was the government bank. All the staff was very kind
and appreciates my work.
Page 92 of 98
This internship has also developed professionalism in me and was very helpful in
understanding the behavior of different customers and stakeholders with whom we have to
deal.
Conclusively, the bank is working hard to get into the race of being best and I am looking a
very prosperous and bright future for BOP as it is remaining continuous updated with its
customer’s needs and new technologies and innovations around.
 15) BIBLIOGRAPHY
Oral
Much oral information was provided by Mr. Syed Zahid Hussain Branch Operation
Manager and Mr. Nasir, and Mr. Rizwan Rasheed.
Books
Ghani, M.A. (2009), Advanced Accounting (13th ed.) PAK IMPERIAL BOOK DEPOT
Meigs and Meigs (2008), Managerial Accounting (9th ed.) PEARSON BOOK SELLER
Written
 Annual Reports
 Records
 Internet
 www.bop.com.pk
 www.pakboi.gov.com
 www.google.com
 16) Glossary
Page 93 of 98
BILLS FOR COLLECTION
A bill of exchange drawn by the exporter usually at a term, on an importer overseas and
brought by the exporter to this bank with a request to collect the proceeds.
CONTINGENCIES
A condition or situation existing at Balance Sheet date where the outcome will be confirmed
only by occurrence of one or more future events
EARNINGS PER SHARE
Profit after taxation divided by the weighted average number of ordinary share in issue.
GUARANTEES
An agreement involving a promise by a person (the guarantor) to fulfill the obligations of
another person owning debt if that person fails to perform
HISTORICAL COST CONVENTION
Recording transactions at the actual value received or paid.
LIQUID ASSETS
Assets that are held in cash or in a form that can be converted to cash readily, such as
deposits with other banks, bills of exchange, treasury bills.
MARKET CAPITALISATION
Number of ordinary shares in issue multiplied by the market value of share as at the year end
PRICE EARNINGS RATIO (P/E RATIO)
Market price of a share divided byearnings per share
SUBSIDIARY COMPANY
A company is a subsidiary of anothercompany if the parent company holdsmore than 50% of
the nominal value ofits equity capital or holds some share in itand controls the composition of
its Boardof Directors.
Page 94 of 98
 17) Appendix
Scanned Copy of Letter of Authorization
Page 95 of 98
17) ANNEXURE
Annexure-I
UNIVERSITY OF THE PUNJAB GUJRANWALA CAMPUS
1. Student Name: Fahad Nabi

2. Roll No:BC12106
3. DEPARTMENT: COMMERECE
4. Contact Number: 92-345-4485496
5. E-mail ID: fahadvirk22@yahoo.com
6. NAME OF COMPANY:
BANK OF PUNJAB NOWSHERA VIRKAN BRANCH
7. AREA OF LEARNING
HRM(admin)
ACCOUNTS
AUDIT(internal)
FINANCE(receipt/payment)
8. ADDRESS:
BOP TATLAY AALI ROAD NOWSHERA VIRKAN BRANCH DISST.

GUJRANWALA, (PUNJAB) PAKISTAN
9. DATE OF JOINIG:01-08-2015to15-09-2015
10. DURATION:6 WEEKS
:
Page 96 of 98
LANDLINE#055 6762311-13, MOBILE#0300-7433028
Annexure-II
CERTIFICATION
This is to certify that this report FAHAD NABI
Submitted in partial fulfillment for the award of DegreeB.COM (Hons) Department of
Commerce, Punjab University Gujranwala Campus was carried out by
MR.RIAZ AHMED CHEEMA Manager of BOP
under my guidance. This report has not been submitted to any other University or Institution
for the award of any degree/diploma/certificate.
Page 97 of 98
Good Bye ! best of luck.
Page 98 of 98

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INTERNSHIP REPORT ON

Areas Covered by Report

The report I am submitting to my honorable teacher contains the following areas:

Mission Statement/Vision Statement 12

General Banking at BOP 37

Ratio Analysis& Interpretation and

According to my internship program, I completed my six weeks internship at Bank of

 Account opening Department

 Who have a great source of love, affection and encouragement throughout my

 Dedicated to my teachers without whom I wouldn’t be able to be the same.

 BOP Nowshera Virkan Branch

Structure of the Branch

Designation No. of Employees

Major Customers and Markets of BOP

Some of the major customers of Bank of Punjab are:

 Pakistan Telecommunication Private Limited

5 ) VISION AND MISSION STATEMENT

“To be a customer focused bank with service excellence.”

 Our Customer: As our first priority.

 Corporate Social Responsibility: To Enrich the Lives of community where we operate

 Integrity: In all our dealings.

 Respect: For our customers and each other

1. To provide speedier services to the common man.

1. Regional Office Lahore.

2. Regional Office Rawalpindi.

3. Regional Office Gujranwala.

4. Regional Office Faisalabad.

5. Regional Office Multan.

6. Regional Office Karachi / Quetta.

7. Regional Office Peshawar

Mr. Safdar Javaid Syed Chairman

Central Management Hierarchy

SENIOR EXECUTIVE VICE PRESIDENT

EXECUTIVE VICE PRESIDENT (EVP)

VICE PRESIDENT (VP)

ASSISTANT VICE PRESIDENT (AVP)

OFFICER GRADE-I (OG-1)

OFFICER GRADE-II (OG-2)

OFFICER GRADE-III (OG-3)

 Current Account (CD):

 BOP Basic Banking Account (BBA):

1. Minimum monthly average balance from Rs. 50,000 & over.

 BOP Supreme Current Account:

Profit And Loss Sharing Term Accounts

BOP Pehlay Munafa Deposit Scheme (profit in advance):

BOP TAQWA ISLAMIC BANKING

MUFTI MYHAMMAD ZAHID

(Chairman Shariah Board)

Mufti Muhammad Zahid has authored various publications

Dr. MUFTI EJAZ AHMAD SAMADANI

Member – Shariah Board

Resident Member Shariah Board

Bai Misaal Term Deposit (profit on maturity): Islamic Products

On deposit side, we are serving our customers with following products;

 BOP Taqwa Saving Account

 Ijarah finance facility

In case of pre-mature encashment, corresponding rate applicable to the period of retention

 Senior Citizens Term Deposit (monthly payment of profit):

Profit And Loss Sharing Chequing Accounts:

 Profit Loss Saving Accounts (PLS):

 Young Lions Saving Accounts (YLS):

 Gharayloo Saving Account:

Commercial finance is of three types: