Professional Documents
Culture Documents
Awais Dar BOP (2) Final
Awais Dar BOP (2) Final
Internship Report
Bank Of Punjab
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Acknowledgement
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Thanks and again thanks to Allah Almighty, who pulled me through the times when
every stone was turned against me. ALLAH and only ALLAH dawned new horizons
for me when the darkest fog made me blind, who really the Best Manager of the entire
universe. Without His consent, nothing is possible. Thank You ALLAH Almighty.
Thanks from the recesses of my heart to the Most Respected Teacher
Prof.Usman Ali Ch. for his untiring efforts, His valuable guidance and
precious advices are rare Assets for me.
Many people contributed ideas, samples and advice, so many in fact that it is simply
not easy to name them all. Therefore, I wish to thank here the members of my family
and who had to endure the most during the preparation of this report, which took place
at odd hours of the early mornings, late nights, and weekends. I also offer heartiest
thanks to all the persons who guided me and encouraged to complete this tough task
successfully.
Dedicated
To:
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Specialization: Finance
INSTITUTE:
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Executive Summary
As we know that Bank of Punjab is the largest bank of the
Pakistan. Thus this report is being to write on Bank of the
Punjab. Report will touch the banking sector importantly on Bop
its origin, and operation, how the banks are classified based on
their function, and so the property and follow trends in the
industry.
In addition to the above, this report focuses on the BOP to be
more precise and discussing the internal details of the bank
located in Shad Bagh Lahore. The main purpose of this report
is to analysis the BOP Marketing Strategy, BOP Marketing
Segmentation, Sales Promotion, BOP Customers handling, so
it is major part of my report.
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1.AccountOpeningDepartment
2.RemittanceDepartment
4.AccountDepartment
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Table Of Contents
ARTICLE V. CHAPTER 4: 34
Trend Analysis 60
CHAPTER 1:
Introduction of Banking
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History of Banking:
The word “banking’’ is derived from the word bancus, banque or
back. The history of banking is traced to as early as 2000BC. The origin
of banking is also traced to early goldsmiths. The first stage in the
development of modern banking thus was the accepting of deposits of
cash from these persons who had surplus money with themselves. In the
second step, goldsmiths used issued receipts for the money deposits
with them. These receipts began to pars from hand to hand in settlement
of transaction.
The 1st central bank was formed in Genoa in 1587. Bank of England
established in 1964. With the passage of time the activities of the
commercial banks have greatly increased. They now deal with large
number of matters such as obtaining funds, advancing loans to
businesses, farmers, householders, and making investment in stocks
discount bill of exchange etc.
ISLAMIC BANKS
BANKISLAMI PAKISTAN LIMITED
ALBARAKA BANK (PAKISTAN) LIMITED
BURJ BANK LIMITED
MEEZAN BANK LIMITED
DUBAI ISLAMIC BANK
PRIVATE BANKS
SAMBA BANK LIMITEDJS BANK LIMITED
ALLIED BANK LIMITED
KASB BANK LIMITED
SUMMIT BANK LIMITED
MCB BANK LIMITED
ASKARI BANK LIMITED
NIB BANK LIMITED
BANK ALFALAH LIMITED
SILK BANK LIMITED
BANK AL HABIB LIMITED
SONERI BANK LIMITED
STANDARD CHARTERED BANK (PAKISTAN) LIMITED
FAYSAL BANK LIMITED
UNITED BANK LIMITED
HABIB BANK LIMITED
HABIB METROPOLITAN BANK LIMITED
SPECIALIZED BANKS
INDUSTRIAL DEVELOPMENT BANK OF PAKISTAN
THE PUNJAB PROVINCIAL COOPERATIVE BANK LTD
SME BANK LIMITED
ZARAI TARAQIATI BANK LIMITED
CHAPTER 2:
Nature of the organization:
A unit of service industry of Pakistan, BOP (commercial bank) is
engaged in the borrowing, lending and advancing of money, the
drawing, making, accepting, discounting, buying, selling, collecting and
dealing in bills of exchange, promissory notes, drafts, bills of lading,
receipts, warrants, debentures, certificates etc.
It is also engaged in the buying, selling of foreign exchange including
foreign bank notes, the acquiring ,holding, issuing on commission ,
underwriting and dealing in stocks, funds, shares, debentures, the
negotiating of loans and advances , the receiving of all kinds of bonds,
valuables on deposit or for safe custody.
The providing of safe deposit vaults the collecting, and transmitting of
money and securities. Over the years, the management has succeeded
in establishing an ideological base for the employees to build the bank
upon customer loyalty, service with dedication and development of a
wide range of products for the customers to choose from .
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Scope of Bank
Achievements
Annual Report of the Bank for the year 2005 won 5 th position for
"The Best Corporate Report Award" for the Financial sectory,
adjudicated jointly by the Institute of Chartered Accountants of
Pakistan and the Institute of Cost and Management Accountants of
Pakistan.
Achievement Award
The Lahore Chamber of Commerce & Industry awarded the Bank
"LCCI Achievement Award " 2006.
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Vision:
To be a customer focused bank with service excellence.
Mission:
To exceed the expectation of our stakeholders by leveraging our
relationship with the Government of Punjab and delivering a complete
range of professional solutions with a focus on programmer driven
products and services in the agriculture and middle tier markets through
a motivated team.
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Core values
Our Customers:
As our first priority
Profitability:
For the prosperity of our stakeholders that allows us to constantly
invest, improve and succeed
Corporate Social Responsibility:
To enrich the Lives of community where we operate
Recognition and Reward:
For the talented and high performing employee
Excellence:
In everything we do
Integrity:
In all our dealings
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Rs. in Million
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Criteri
Balance Sheet 2014 2013 2012 2011 2010 a
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OPERATINRESULT
S
Markup/ return/ interest 24,2 24,6 20,6 18,2
earned 29,522 28 66 85 20 Rs in m
Markup/ return/ interest 20,2 22,5 21,0 18,8
expenses 20,526 09 23 73 02 Rs in m
4,0 2,1 (38 (58
Net markup income 8,996 19 43 8) 2) Rs in m
3,5 3,1 1,9 1,8
Non-markup based income 2,790 96 91 90 83 Rs in m
5,2 4,5 3,7 4,1
Non-markup based expenses 6,250 80 58 11 68 Rs in m
(6 (96 (3,1 56
Provision against NPLs 1,119 73) 5) 64) 0 Rs in m
3,0 1,4 52 (6,1
Net profit/(Loss) before tax 4,307 01 04 3 86) Rs in m
1,9 1,6 34 (4,0
Net profit/(Loss) after tax 2,787 38 34 8 29) Rs in m
Other Information:
Rs. per
EPS (Non-dilutive) 1.94 2.36 2.63 0.66 (7.62) share
Dividend - Cash - - - - - %
Dividend - Bonus issue-
Interim - - - - - %
- Bonus issue-Final - - - - - %
No. of branches 364 334 306 284 273 No.
Staff Strength 6,180 6,092 5,491 4,999 4,464 No.
Rs. per
Breakup value per share* 6.77 5.58 4.82 4.55 1.93 share
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Practical life is totally different from the study life. Therefore, many
universities are required to complete an internship before graduation
or master degrees for the purpose to realize the practical life and
learning opportunities outside the classroom. To meet this requirement I
was going for internship and select a bank which name is Bank of
Punjab. The basic reason for selection of this bank is that I have the
reference for this bank and it is near to house. Another reason is that
bank sector is grow rapidly in Pakistan and play a vital role in our
economy and I want to see natural environment of banking sector and its
wide range of activities. Therefore, I select internship in banking sector.
Board of Directors:
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Auditors
Chairman
Board of Directors
Executive Committee
Executive in charges
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Competitors
The competitors of the Bank of Punjab are the other commercial
banks in Pakistan such as:
Summit Bank
Al Baraka Bank
Meezan Bank
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MCB Limited
Saving Deposits
PLS Saving Account
Senior Citizen Account
Gharayloo Saving Account
Behtreen Munafa Saving Account
Corporate Premium Account
Supreme Saving Account (PLS)
Supreme Saving Account (FCY)
Youth Lion Saving Account
Term Deposits
Kissan Dost Term Deposit
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Commercial Finance
Apna Rozgar Scheme
Car Lease CarGar
Electronic Banking
Visa Debit Card
Internet Banking
ATM
Call Center
Services
ATM
SMS Alert
Remittance
Online banking
Lockers
Collection of utilities bill
Demand draft
Agriculture Credit
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Trade Finance
Trade finance is a loan provided to the importers and exporters to make
their transaction effective. This enhances the global business. The Bank
of Punjab makes some trade processing centers to cooperate the
exporters and also to the importers in different cities of Pakistan.
Current Account
The Bank of Punjab accepts deposits from its customers on the basis of
Qarda-e-Hasa. These account holders do not participate/share in profit
and loss and can withdraw their funds any time without any prior notice
to the Bank whereas Bank is liable to pay them on demand.
Loss Sharing
The Bank of Punjab accepts deposits from its customers on the
basis of Mudaraba. According to the Shariah, the customer (Rab Ul
Mal) is liable to bear the losses, however Bank also shares the loss in
proportion to its share in the investment pool, if any.
All Islamic banking branches in the Bank are managed by the Islamic
Banking Division of the Bank. All transactions in the Islamic banking
branches and in the Islamic Banking Division are conducted in
accordance with the principles of Shariah. The Bank’s accounts are
subject to Shariah Audit and there is a system in place for Shariah
compliance. The Bank has appointed a Shariah Advisor, to ensure
Shariah Compliance in all transactions pertaining to Islamic banking
branches and the Islamic Banking Division.
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CHAPTER 3:
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1. Date
2. Account title
3. Account no.
4. Amount.
5. Mode of collection
6. Signature of clients
1. Date
2. Pay (Account title or self)
3. Amount in figure and digits.
4. Signature of clients (thumb expression in case of photo shoot
account)
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OTHER DEPARTMENTS
CLEARING DEPARTMENT:
TYPES of CLEARING:
1. Inward Clearing
2. Outward Clearing
In clearing department the cheques of BOP and other banks are
presented for clearing through NIFT. The bank collects money on behalf
of its customer and deposits it in its customer account. A separate
clearing register is maintained on daily basis to record all the
transactions.
1. In ward clearing:
In inward clearing the cheques of BOP is presented in other bank and
it is received by the BOP through NIFT for clearing.
2. Outward clearing:
In out ward clearing the cheques of other banks are presented in the
BOP by its customer for clearing.
a) CASH DEPARTMENT
Cash Receipts
Cash Payments
Utility Bills Collection
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REMITTANCE:
Remittance department perform the function of sent and receive of
money. With the help of remittance a client can be transfer his/her
funds anywhere in the world and at home. There are many codes
are used for transfer of funds.
Bank of Punjab transfer money from one place to another place by
way of:
Demand Draft
Pay Order
Telegraphic Transfer
Mail Transfer
Online Transfer
BOP Remittance Service offers you two ways of receiving
money:
1) Account to Account Transfer:
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CHAPTER 4:
2013 2014
Rupees in '000'
Assets
Cash and balances with treasury banks 23820864 23622411
Balances with other banks 4265296 2239170
Lending’s to financial institutions 11407448 32748623
Investments –net 123973891 154943890
Advance –net 157239598 170273415
Operation fixed assets 3514801 5490121
Deferred tax assets –net 12627352 9845426
Other assets -net 15825007 21237382
352674257
420400438
Liabilities
Bills Payable 1506335 1727731
Borrowings 22802482 44742624
Deposits and other accounts 306560694 342290693
Sub-ordinated loans --------------- 2000000
2386 1128
35 --------------- -------------
8345203 10281610
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339217100 401043786
NET ASSETS 13457157 19356652
REPRESENTED BY
Share capital 10551132 15551132
Discount on issue of shares (263158) (263158)
Reserves 1539659 7000000
Accumulated losses (11275026) (9083209)
12000000 15286008
Surplus on revaluation of assets –net 12552607 4070644
13457157 19356652
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1063275 1519911
Profit After taxation 1914720
2841535 (11275026)
Accumulated losses brought forward (12743218) 9858
10352
(Transfer from surplus on revaluation of
(980)
fixed asset –net of tax) 814
(Transfer from surplus on revaluation of
(557490)
fixed asset on capital) (387601) 2514
37 8391 103620
(78484)
`
(13189746)
(11924744)
Accumulated losses carried forward (11275026)
(9083209)
Basic Earnings per share – Rupees 2.33
1.97
Diluted Earnings per share –Rupees 2.33
1.97
2013 2014
(2131435)
742286
709048
5063814
Advances –net
Others assets –net
(160936340)
(32133410)
Increase/(decrease) in operating liabilities:
Bills payable 5626 221396
Borrowings (21911655) 21878241
Deposits and other accounts 40504933 35729999
Other liabilities 760922 1828037
1828037
19359826
59657673
3975534
32588077
Financial charges paid (275) (152)
Income tax paid (243650)
(237144)
Net cast flow from operating activities 3731609
32350781
Cash flows from Investing activities
Net investments in available for sale securities 1884181 (23329952)
Net investments in held to maturity securities 593308
Dividends received 142068 13651866
Investment in operating fixed assets (505963) 39543
Sale proceeds of property and equipment (568653)
192341
disposed-off 58994
Sale proceeds of non-banking assets
2498583 719551
disposed -off
Net cash flow from /(used in) investing activities 510412
4804518
(36732383)
Cash Flows from financing Activities
Payment of lease obligations (1215) (1258)
Right shares issue cost (78484) 2000000
Net cash used in financing activities (79699)
(1895122)
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5263158 (263158) -
Balance as at December 31,2014 1055132 (263158)
783965
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2013
2014
Cash And Balances with Treasury Banks
In hand:
- Local currency (1) 4300888 4325393
- Foreign currencies 681826 640574
4982714
4965967
13559905 1776921
23820864 23622411
NOTES:
This includes National Prize Bonds of Rs. 33,027 thousand {2013: Rs. 42,091
thousand} (1)
This represents current account maintained with the SBP under the
requirements of section 22 “Cash Reserve Requirement” of the Banking
Companies Ordinance, 1962. (2)
These represent mandatory reserves maintained in respect of foreign
currency deposits under FE-25 scheme, as prescribed by the SBP. (3)
This carries mark-up as announced by the SBP on monthly basis.(4)
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2013
2014
Balances with Other Banks
IN PAKISTAN
- On current account 2057116 1884942
159100 82586
- On deposit account (1)
2216216 1967528
OUTSIDE PAKISTAN
2049080 271642
4265296 2239170
Notes
These carry mark-up at rates ranging from 6.00% to 7.15% per annum (2013: 6.0% to
8.0% per annum) (1)
This carries mark-up at 0.05% per annum (2013: 0.05% per annum) (2)
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Advance –Net
2013
2014
Loans, Cash credits, running finances etc.
- In Pakistan 164150576 173952931
- Outside Pakistan - -
164150576 173952931
Islamic financing and related assets 358000 217559
Net investment in finance lease
- In Pakistan 14060985 17372840
- Outside Pakistan
- -
14060985 17372840
- Specific
- General
(25675259) (26809770)
182914857 197083185
Short –term advances upto one year 99818862 100276936
Long –term advances for over one year 83095995 74881929
182914857 197083185
Note:
The management has prepared a business plan on the basis of the arrangements.
The business plan includes certain key assumptions such as deposit composition,
growth of deposits and advances, Investment returns, potential provision against
assets, branch expansion plan etc. Any significant change in the key assumptions
may have an impact on the projections however, the management believes that it is
probable that the bank will be able to achieve the projections as per the business
plan and future taxable income would be sufficient to allow the benefit of the
deductable temporary differences.
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2014
2013
Rupees in ‘000
16,092,110 21480559
(267,103) (243177)
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2013 2014
Rupe
Note es in ‘000
3,514,801 3,473,491
Capital work-in-progress
129,034 132,650
Note: During the year, the Bank has disposed off the premises at a gain
of Rs. 8,292 thousand (2013: Nil).
2013 2014
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14,
893
Closing balance 25,633,504 41,755 25,675,259 26,299,268 26,314,161
2013 2014
Rupees in
‘000
(673,081) (965,430)
1,437 98,062
1,437 98,062
Customers
Fixed deposits 125,857,124 111,143,862
Savings deposits 110,019,779 100,934,185
Current accounts - non-remunerative 60,096,224 47,209,408
Sundry deposits, margin accounts, etc. 2,320,299 2,854,198
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298,293,426 262,141,653
Financial Institutions
Remunerative deposits 7,227,752 3,131,640
Non-remunerative deposits 1,039,516 782,468
8,267,268 3,914,108
306,560,694 266,055,761
2013 2014
Not later than one year 1,298 148 1,150 1149 21 1,128
Later than one year and
not later than five years 1,265 29 1,236
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3,036,386 1,912,790
Others 89,325 152919
8,345,203 10281610
2013 2014
Rupees in
‘000
The Group has started Islamic banking operations during the year ended
December 31, 2014. As at close of the December 2014, 07 Islamic banking
branches were operating.
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8501544 1741786
Liabilities
Bills Payable 63129 1422
Due to financial institutions 264 -
Deposits and other accounts -
- Current account 3250964 660556
- Saving account 3916827 425985
- Term deposit 284189 7100
- Others 129835 12846
- Deposits from financial institutions-remunerative -
- Deposits from financial institutions-non remunerative -
Due to head office 275970 109565
Other liabilities 28781 5784
7949959 1223258
NET ASSETS 551585 518528
REPRESENTED BY:
Islamic banking fund 500000 500000
53 -
55436 13095
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Reserves
Unappropriated profit
555436 513095
Surplus on revaluation of assets (3851) 5433
551585 518528
2014 2013
Profit /return earned on financing, investment and placements 26674 82002
Return on deposits and other dues expensed 81147 14437
Net spread earned 185600 67565
Provision against non-performing advances - -
Provision against consumer financings - -
Provision for diminution in the value of investments - -
Bad debts written off directly - -
-
income after provisions 185600 67565
Other Income
Fee, commission and brokerage income 17997 2486
Dividend income -
Income from dealing in foreign currencies 132 2377
Gain on sale and redemption of securities -
Unrealized (loss)/gain on revaluation of investments -
31662
54 12776
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235391 73704
Other expenses
Administrative expense 193050 60609
Other provisions /writer offs /reversals - -
- -
Other charges
Total other expenses 193050 60609
42341 13095
Extra ordinary / unusual items
-
Profit before taxation 42341 13095
FINANCIAL ANALYSIS
To analyze the financial position of The Bank of Punjab, different
tools are used like Ratio Analysis to measure the financial
performance of The Bank of Punjab.
b) External users
Examples:
Three Types:
HORIZINTAL ANALYSIS:
Balance sheet
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Increase/
2013 2014 Decrease
%
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LIABILITIES:
Bills payable 1,500,709 1,506,335 5626 .37%
Borrowings 44,683,826 22,802,482 (21,881,344) -49%
266,055,78 306,560,76
Deposits and other accounts 1 7 40,504,986 15%
Sub-ordinated loans - -
Liabilities against asset subject to
finance lease 3,601 2386 (1215) -34%
Deferred tax liabilities - -
Other liabilities 7,495,634 8,344,877 849,243 11%
319,739,55 339,216,84
1 7 19,477,296 6%
REPRESENTED BY:
Share capital 5,287,974 10,551,132 5,263,158 99%
Reserves 1,187,433 1,539,659 (1,033,774) -87%
Accumulated loss (12,742,36) (11,250,88) 1,491,479 12%
(6,266,957) 576,748 (5,690,209) 91%
Share deposit money 17,000,000 12,000,000 - -
Surplus on revaluation of assets -
net of tax 1,638,460 904,550 (733,910) -45%
12,371,503 1,109,795 9%
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13,481,298
VERTICAL ANALYSIS:
Vertical analysis is the proportional analysis of a financial
statement, where each line item on a financial statement is listed as
a percentage of another item.
Balance sheet
Amount in Amount in
ASSETS: “000” “000”
Cash and balances with treasury banks 17,298,251 5% 23,820,864 6%
Balances with other banks 3,101,170 1% 4,265,296 1%
Lendings to Financial institutions 1,562,946 0% 11,407,448 3%
129,518,99 123,956,14
Investments - net 9 39% 3 35%
149,605,00 157,285,59
Advances - net 2 45% 8 45%
LIABILITIES:
Bills payable 1,500,709 .5% 15,063,335 .5%
Borrowings 44,683,826 14% 22,802,482 6.7%
266,055,78 306,560,76
Deposits and other accounts 1 83% 7 90%
Sub-ordinated loans - -
Liabilities against asset subject to finance 0.001 0.0007
lease 3,601 % 2,386 %
Deferred tax liabilities - -
2.46%
Other liabilities 7,495,634 2.34% 8,344,877
319,739,55 339,216,84
1 100% 7 100%
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Trend Analysis
A firm's present ratio is compared with its past and expected future
ratios to determine whether the company's financial condition is
improving or deteriorating over time. Trend analysis studies the
financial history of a firm for comparison. By looking at the trend of a
particular ratio, one sees whether the ratio is falling, rising, or
remaining relatively constant. This helps to detect problems or
observe good management.
Balance sheet
Total assets Rs.in m. 352698 332111 280998 229190
Advance (net) Rs.in m. 157286 149605 127130 120818
Investments Rs.in m. 123956 129519 92581 56403
Shareholders Equity Rs.in m. 12577 10733 10135 2947
Revaluation Reserve Rs.in m. 905 1638 638 721
Rs.in m. 306561 266056 237897 208177
60 Rs.in m. 22802 44684 24964 11527
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Deposits
Borrowings
Operating Results
Markup/return/interest Rs.in m. 24228 24666 20685 18220
earned
Markup/return/interest Rs.in m. 20209 22523 21073 18802
Expenses
Net markup income Rs.in m. 4019 2143 (388) (582)
Non-markup based Rs.in m. 3596 3191 1990 1883
Income
Non-markup based Rs.in m. 5280 4558 3711 4168
Expenses
Provision against NPLs Rs.in m. (673) (956) (3164) 560
Net profit/(loss)before Rs.in m. 3001 1404 523 (6186)
Tax
Net profit/(loss) after Rs.in m.
1938 1634 348 (4029)
Tax
Other information
EPS (Non dilutive) Rs. Per 2.36 2.63 0.66 (7.62)
share
Dividend –cash - - - -
%
61 % - - - -
% - - - -
No.
334 306 284 273
No.
`
Dividend:
- bonus issue –interim
- bonus issue –final
No. of branches
Staff strength
Break up value per share
Ratio analysis:
Expression of logical relationships between items in a
financial statement of a single period (e.g.,percentage
relationship between revenue and net income). Ratio analysis
is used to calculate the profitability, liquidity/leverage etc.
of the firm. From ratio analysis it is possible to predict future
variances. Following ratio analysis of Bank of Punjab has been
calculated. I am discussed some ratio analysis:
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WORKING:
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= RS.6, 475,407
ROE= 1744556/6475407x100 =26.94%
Year 2014: Total Equity = 10,551,132-263,158+1,539,659+0
=RS.11, 827,633
ROE=1914720/11827633x100=16.18%
Working:
Year 2013: 1744556/621264311 =2.81
Year 2014: 1914720/820953647=2.33
The P/E Ratio indicates how much investors are willing to pay per
dollar of current earnings. As such, high P/E Ratios are associated
with growth stocks. (Investors who are willing to pay a high price for a
dollar of current earnings obviously expect high earnings in the future.) In
this manner, the P/E Ratio also indicates how expensive a particular stock
is. This ratio is not meaningful, however, if the firm has very little or
negative earnings.
Price/Earning Ratio
Debt Ratio:
The ratio of total debt to total assets, generally called the debt ratio,
measures the percentage of funds provided by the creditors. The
proportion of a firm's total assets that are being financed with borrowed
funds. The debt ratio is calculated by dividing total long-term (debt) and
short-term liabilities (short term borrowing, a/c payable) by total assets.
The higher the ratio, the more leverage the company is using and the
more risk it is assuming. Assets and liabilities are found on a company's
balance sheet.
Working :
Total Debt =Bills Payable+Borrowings from financial institutions+ Deposits &
other accounts+Subordinate Loans+Liabilities against assets subject to finance
lease + deferred tax liabilities+Other liabilities
For 2012: Total Debt = 1500709 + 44683826 + 266055761 + 0 + 3601 +
7495928
= RS.319, 739,825
Debt Ratio: 319739825/332110474x100=96.97%
For 2013:
Total Debt = 1506335 + 22802482 + 306560694 + 0 + 2386 + 8345203
= RS.339, 217,100
Debt Ratio: 339217100/352674257x100=96.18%
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Working
Total Debt = Bills Payable + Borrowings from financial institutions + Deposits
& other accounts + Subordinate Loans + Liabilities against assets subject to
finance lease + deferred tax liabilities+ Other liabilities
Total Equity = Share Capital + Reserves + Un-appropriate Profit
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CHAPTER 5:
SWOT ANALYSIS
SWOT analysis is one of the most important steps in formulating
strategy using the organization mission as a context; managers
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2. Neutralizing it threats.
INTERNAL ASSESSMENT:
STRENGTH:
The Bank of Punjab has lack of staff members than the
required staff level but its performance level is high as
compared with its staff level.
As a result of the compassionate and personalized services
of the officers, the clients’ perception for BOP is very high.
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WEAKNESS:
EXTERNAL ASSESSMENT:
ENVIRONMENTAL OPPORTUNITY:
ENVIRONMENTAL THREAT:
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PEST ANALYSIS
PEST analysis is a useful tool for understanding the “big picture” of the
environment, in which we are operating, and the opportunities and threats that lie
within it. By understanding the environment in which we operate (external to your
company or department), we can take advantage of the opportunities and minimize
the threats.
Specifically the PEST analysis is a useful tool for understanding risks associated
with market growth or decline, and as such the position, potential and direction for a
business or organization. A PEST analysis is a business measurement tool, looking
at factors external to the organization. It is often used within a strategic swot analysis
(Strengths, Weaknesses, Opportunities and Threats analysis).PEST is an acronym
for Political, Economic, Social, Technological factors, which are useassess the
market for a business or organizational unit strategic plan. PEST stands for:
Political Factors
Economical Factors
Socio Factors
Technological Factors
Political Factors
Banks have been affected by political factors. Political decisions by the
Government of the country in particular and by foreign governments in
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general also affect the banking sector and work of a manager. The
decisions taken by the Government may be favorable or
unfavorable in their implications to business. Federal, provincial and
local bodies Fiscal and monetary policies of the country may affect the
business. Political decisions also influence Bank –client relationship.
There are following political factors affected the performance of Banks in
Pakistan.
a) Nationalization and denationalize of banking
b) Instability of Governments
c) Increase no. of foreign Banks
d) Energy crisis
e) Terrorist and criminal activities
Various policies are framed by the SBP looking at the present
situation of the country for better control over the banks
Government Policy
Monitory Policy
Budget Measures
Economic Factors
Economic policies of the Government and State Bank of Pakistan
greatly affect the performance of Banks. Currently credit ceilings
and Capital value added tax have resulted in excess liquidity. In the
absence of a well-developed capital market, banks are faced with
constraints for investment. The growing inflation rate motivates
depositors to divert their from banks to national savings schemes.
Credit policies of the State Bank also affect operations of Banks.
There are following Economic factors have major affect on the
performance of banking sector.
a) Inflation and Deflation rate
b) Tax and Trade policies
c) Wages rates
d) Fiscal policies
e) GDP rate
f) Devaluation of currency rate
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Social Factors
The Social environment is composed of attitudes, expectations,
degree of intelligence, education, belief and customs of people in a
group or society. Ethical aspects include principles and practices
which correlate to personal conduct, Changes in these patterns
affect the work of banking sectors and its employees.
From the view point of a banker, the behavior of clients is very
important. If ethical standards are high and capacity to pay exists,
loans are likely to be returned. On the other hand, despite capacity
to pay, existing loans are not likely to be paid. Moral self-
accountability is a prerequisite to change the behavior of the client.
There are following involves in social factors:
a) Changing in living standard of people
b) Custom and traditions
c) Changing in tastes, fashions and preference
d) Literacy rate
e) Population growth
The social needs and challenges are many and of diversified
nature. It will be in the fitness of things if banks respond to societal
needs and come forward to make positive contribution towards
betterment of the society.
Technological Factors
In today’s time, the term technology is used in a broader sense and
includes the following:
a) Invention
b) Techniques
c) New store of organizational knowledge
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CHAPTER 6:
Modern Technology
The 21st Century has several challenges. It has been new trends on
National and International levels. Without new tools, methods and
technology it cannot be possible. Now a days, Modern technology
affected various sectors including banking sectors. The technology
becomes a crying need of every business. So BOP should be
adopted every new technology for their business expansion and
growth.
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Appraisal System
During Internship I felt that there is no or very less appraisal of any
ones cool performance. The manager should strictly monitor the
performance of every staff member. All of them should be awarded
according to their performance and result in the shape of bonuses
to motivated and incite them to work more efficiently.
Controls
The major and the most important flaw in the BOP is lack of internal
controls and inter communication between different branches of the
bank.
Branch Transfers
Transfer is not properly carried out. Some of the employees are
continually serving at the same post. They are simply rotated at the
same branch. Therefore it is recommended that evenly rotation of
every employee should take place after every three years in
different braches of the bank.
Complaints of Customer
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Commitment To BOP
It is suggested that employees working on daily wages basis should
be given some benefits, which the other employees are getting.
Their salaries must increase according to efficiency, performance
and service this will increase their commitment to the bank.
CHAPTER 7:
Conclusion
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Bibliography
For the analysis and the brief history of the Bank of Punjab, his financial Statements, I attain
data by using internet from different websites, in which,
History of The Bank of Punjab Retrieved 20th March 2016 from Bank of Punjab web
https://www.bop.com.pk/AboutUs
https://en.wikipedia.org/wiki/List_of_banks_in_Pakistan
http://sbp.org.pk/f_links/index.asp
Bank Of Punjab Financial reports
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www.sbp.org.pk/stats/Balance/2014/ Bank-of-Punjab.pdf
https://www.bop.com.pk/Financials/Annual%20Accounts/AFS2014.pdf
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