INTERNSHIP REPORT

ON
THE BANK OF PUNJAB
SUBMITTED BY:

NAME: AMEERA ASIF

ROLL NO: 1923109002

SESSION: 2019 – 2023

PROGRAM: B.COM (HONS)

SUBMITTED TO:
GOVT GRADUATE COLLEGE FOR WOMEN
SAMANABAD

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 DECLARATION
An internship report submitted to the department of management sciences, Lahore college for
women university,
in practical fulfilment of the requirement for the degree of B.com

Dedication
Dedicate this report to my parents and siblings, by whome encouragement
and support I could perform this honorable project.

After that, diligence goes to my institute GOVT GRADUATE COLLEGE

SAMANABAD, which provide me with guidance and this noble opportunity.

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ACKNOWLEDGEMENT

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 First and foremost, I would like to express my deepest gratitude to almighty Allah for giving me

the strength and the composure to complete my internship report within the scheduled time.

It is a great and unique pleasure to me that I have got a chance to thank a large number of

individuals for their help and encouragement to make the internship successful.

I would like to express my indebtedness to “LAHORE COLLEGE FOR WOMEN

UNIVERSITY”, for providing me with the opportunity and knowledge to do a satisfactory

internship. I express my deep gratefulness to Mr Irfan Bhatti (BOM) for his kind permission to

allow me for four weeks of practical experience in the Bank of Punjab New Anarkali Branch.

I am also thankful to all other departmental heads, officials, the office staff of the “BANK OF

PUNJAB NEW ANARKALI BRANCH”, for their sincere co-operation and support. Last but

not least all the individuals who spent their time explaining to me the procedure of their

respective sections, Miss Anam (RTO), Miss Sana (RTO), Mr Shoaib (CO), Mr Ahmad (CSO),

and many others. I am grateful for their constant guidance, support & valuable suggestions

during the time of internship.

TABLE OF CONTENT

INTRODUCTION

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 EXECUTIVE SUMMARY --------------------------------------------------------------------------- 8 - 9

BANKING HISTORY OF PAKISTAN ------------------------------------------------------------ 9 - 10

ABOUT THE BANK OF PUNJAB ----------------------------------------------------------------- 11 - 12

VISION ------------------------------------------------------------------------------------------------- 14

MISSION ----------------------------------------------------------------------------------------------- 14

POLICIES AND GOVERNANCE ------------------------------------------------------------------ 15 - 17

MARKETING MIX

Product ----------------------------------------------------------------

Price -------------------------------------------------------------------------

Place ---------------------------------------------------------------------

Promotion ----------------------------------------------------------------

Financial statement analysis

Ratio analysis and interpretation-------------------------------------

Skills and knowledge aquired

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 Activities during internship--------------------------------------------------

Recommendation and conclusion

EXECUTIVE SUMMARY

Internship is an important part of B.com program and provides opportunity to all students to learn

about the working of organization and improves their personal skills. This internship is not only

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helpful for making this report but also gives me a real-world knowledge about the business,

banking and policies.

This internship report is a brief study of complete functions, operations, procedures accomplished in

Bank of Punjab. This report is the result of four weeks performance in the form of internship at

BOP.

The bank of Punjab was incorporated in 1989, pursuant to The Bank of Punjab Act 1989, and was

given the status of a retail bank in 1994.

I have done my internship at The Bank of Punjab New Anarkali branch. I learnt during my

internship that classroom knowledge and internship activities are correlated positively somehow.

During my stay at Bank of Punjab, I got the opportunity to work with Cash officer and Customer

Service Officer.

About the bank of punjab

The bank was established in 1989 through an act of the Provincial Assembly of Punjab as a non-

scheduled.

The bank was given the status of a scheduled bank in 1994. The Bank of Punjab was founded by

Tajammal Hussain and it functions as a scheduled commercial bank, with a network of 636 online

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branches, spanned throughout the country. The Government of Punjab being the majority shareholder

and sponsor of the bank, holds 57.47% shares of the bank. The Bank of Punjab has implemented

different policies to make it one of the best banks in Pakistan, which included introducing new products

and services and increase its operations by opening new branches in Pakistan. The bank has also

established its footprint in the areas of consumer financing, agriculture credit, corporate/wholesale and

investment banking and Alternative Delivery Channels It is the seventh-largest commercial bank in the

country. It provides a wide range of banking services including deposit in local currency; client deposit

in foreign currency; remittances; and advances to business, trade, industry and agriculture. First Punjab

Modaraba (FPM), a wholly owned subsidiary of the bank, was established in 1992, and is being

managed by Punjab Modaraba Services (Pvt) Ltd.

Since its reorganization, The Bank of Punjab has successfully surmounted the challenges thrown in its

direction by senior management and several initiatives and innovations have been successfully

implemented in the backdrop of our mission statement, “Passion Reborn”.

Organogram & Organizational Structure

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 VISION STATEMENT

“Your banking partner in creating value and improving lives”

MISSION STATEMENT

Meet customer needs through innovative technology products/services to drive business growth while

promoting financial inclusion, diversity and prosperity across the nation with a motivated team through

culture of excellence and empathy.

POLICIES AND GOVERNANCE

Human Resource Framework:

The Human Resource Department at The Bank of Punjab, in 2020, was renamed as the People &

Organizational Excellence Group and adopted a multi-pronged strategy in terms of Learning &

Development, operational and cultural transformation through use of digital and technology platforms

and re focusing on talent acquisition, retention and development

Information Security Policy:

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The purpose of Information Security (“IS”) is to ensure that the information remains confidential, its

integrity is maintained and it is available when needed. The purpose of this document is to define the

principles to which all the employees must adhere to when handling or coming across the information,

owned by or entrusted to BOP in any form.

IT Policy:

The main goal of deploying information technology within the Bank is to support the strategic business

plan of the Bank, to enhance customer services and provide effective control over the Bank operations

through automation and MIS. The information technology function in The Bank of Punjab (at present

named as “Information Technology Division – ITD”) will be responsible for implementation of the

Policy and will coordinate with the stakeholders for development of related plans, procedures and/or

operational manuals to achieve compliance with the Policy.

MANAGEMENT HIERARCHY

At the level of Decision-making, the senior board of directors of the bank take important decisions regarding the

human resource and on all other kinds of essential matters. Senior management has rich experience in the banking

profession both domestically and internationally.

The board of directors at the Bank of Punjab has the responsibility of devising plans that contribute towards

achieving the goals and objectives and overall direction for Management’s compliance with laws, rules and

regulations, including directives issued by State Bank of Pakistan, Securities & Exchange Commission of

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Pakistan, requirements of the Bank of Punjab Act, 1989, provisions and directives issued under the Banking

Companies Ordinance, 1962, the Companies Act, 2017 the Listed Companies (Code of Corporate Governance)

Regulations, 2019.

1 Mr. Mohammad Jehanzeb Khan Director

2 Mr. M. Abdullah Khan Sumbal Director

3 Dr. Muhammad Amjad Saqib Director

4 Mr. Khawaja Farooq Saeed Director

5 Mr. Saeed Anwar Director

6 Mr. Shaharyar Ahmad Director

7 Mr. Syed Ghazanfar Abbas Jilani Director

8 Mr. Zafar Masud President &

CEO

MARKETTING MIX

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The concept of marketing is very important in the business literature.Marketing strategy is a

combination of a number of marketing elements according toa market situation. If a business enterprise

rationally blends the elements of marketing into a program of mix, then it competes, stays and earns

profit in themarket. In case, the integration of the various elements of marketing is defective, thefirm

cannot fight out its rivals in the market and ultimately suffers losses.

Marketing strategy is defined as

“The set of controllable tactical marketing tools that the firm blends to producein response to wants in

the target market.”

The various elements of marketing strategy are as follows;

 Products

 Promotion

 Price

 Place

Marketers use numerous tools to elicit desired responses from their targetmarket. These tools constitute

a market mix.

“Marketing mix is a set of marketing tools that the firms use to pursue itsmarketing objectives in the

target market.” Now let us discuss the marketting mix of the bank of punjab while successfully

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penetrating the key domestic markets through stategic expention and business diversification we remain

alive to the challenges emanating from the developments in the global financial markets; the opportunity

and th

FINANCIAL STATEMENT ANALYSIS

THREE YEARS FINANCIAL STATEMENT ANALYSIS

HORIZONTAL ANALYSIS

(Rupees in Million)

ASSETS 2021 21 Vs 20 2020 20 Vs 19 2019

---------- Amount % Amount % Amount

Cash and balances 71,319 3% 69,272 8% 58,798

with treasury

banks

Balances with 8,718 264% 2,398 50% 4,781

other banks

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Lending to 30,980 93% 16,087 11% 14,454

financial

institutions

Investments – net 531,683 -6% 567,789 3% 550,876

Advances – net 484,405 24% 391,161 18% 330,436

Fixed assets 19,832 34% 14,813 15% 12,836

Intangible assets 1101 60% 689 17% 587

Deferred tax assets 13,696 76% 7,774 16% 6,665

– net

Other assets – net 35,218 38% 25,465 3% 24,654

Total ASSETS 1,196,952 9% 1,095,446 9% 1,004,087

LIABILITIES 2021 21 Vs 20 2020 20 Vs 19 2019

---------- Amount % Amount % Amount

Bills payable 10,109 143% 4,169 14% 3,657

Borrowings 71,323 -54% 154,841 36% 113,655

Deposits and other 1,002,955 20% 835,068 6% 806,764

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accounts

Subordinated debts 7,789 15% 6,792 18% 5,755

Other liabilities 49,943 18% 42,315 6% 39,876

TOTAL 7% 970,696
1,142,119 9% 1,043,185
LIABILITIES

NET ASSETS 54,833 5% 52,262 3% 50,970

REPRESENTED 20 Vs 19 2019
2021 21 Vs 20 2020
BY

Amount % Amount % Amount

Share capital – net 26174 0% 26174 0% 26174

Reserves 10517 31% 8029 7% 8676

Surplus on (1369) -123% 5955 30% 4567

revaluation of assets

- net of tax

Unappropriated 19,511 61% 12,103 3% 11,765

profit

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 Total 54,833 5% 52,262 2% 51,182

REPRESENTED

BY

Profit & Loss 20 Vs 19 2019

2021 21 Vs 20 2020
Account

---------- Amount % Amount % Amount

Mark-up / return / 81,651 -5% 86,019 0% 84,678

interest earned

Mark-up / return / (51,775) -17% (62,694) -10% (69,877)

interest expensed

Net mark-up / 29,876 9%% 27,325 6% 25,766

interest income

Non mark-up / 7904 -39% 13,046 -11% 14,765

interest income

Total income 37,780 4% 36,371 11% 32,765

Non mark-up / (21,014) 20% (17,519) 11% (15,776)

interest expenses

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Profit before 16,766 -11% 18,852 6% 17,765

provisions

Provisions and (1642) -124% (6862) 5% (6569)

write offs – net

Profit before 18,408 54% 11,989 12% 10,678

taxation

Taxation – net (5,968) -18% (5,046) -3% (5,088)

PROFIT AFTER 12,440 79% 6,944 18% 5,877

TAXATION

RATIOS

Operating Profit Margin:

2021 2020

33% 19 %

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Interpretation:

. Operating Profit Margin increases 33% in the year 2021. It means the operating expenses of bank is

less than their revenues. The major reason of increasing the operating profit is decrease in expense and

increase in revenue.

Return on Equity:

2021 2020

23% 14%

Interpretation:

Return on equity is a measure of financial performance calculated by dividing net income by

shareholder equity. ROE is calculated to check the profitability and how efficient it is in generating

profits.

Levarage Ratio:

2021 2020

21 % 19 %

Interpretation:

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Levarage Ratio of bank is increase by 21% in the year 2021. Leverage ratios check the capability of the

bank to take loan. If assets is more than liabilities than we take loan.

Current Ratio:

2021 (Times) 2020 (Times)

1.12 1.08

Interpretation:

Ideal current ratio is 2:1 but this current ratio 1:1 which shows that the banks assets are equal to its

liabilities its assets are enough to pay its liabilities. The ratio shows a bank ability to remain solvent.

CASA Ratio:

2021 2020

64 % 65 %

Interpretation:

The CASA ratio indicates how much of a bank's total deposits are in both current and savings accounts.

This ratio has increased by 65 % in the year 2020 while it has decreased by 64 % in the year 2021.

Comfortably, the bank should have a minimum CASA ratio of around 70 %.

Advance-to- Deposit Ratio:

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 2021 2020

48 % 46 %

Interpretation:

The advances-to-deposit ratio uses to assess a bank's liquidity by comparing a bank's total advances to

its total deposits. This ratio has increased by 48 % in the year 2021 while 46 % in the year 2020. The

reason is, the bank is using these deposits for investments.

Debt Equity Ratio:

2021 2020

19 % 27 %

Interpretation:

This ratio has increased by 19% in the year 2021 while it has increased by 27 %2019 in the year 2020.

The debt to equity ratio is used to evaluate a banks financial leverage and it is a measure of the degree

to which a company is financing its operations through debt versus wholly owned funds.

Assets to Equity Ratio:

2021 (Times) 2020 (Times)

21.83 20.96

Interpretation:

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This ratio has decreased by 14 % in the year 2019 and decreased by 26 % in the year 2020. The excuse

behind this decrease is, profit after taxation is decreasing more than equity.

Staff Turnover Ratio:

2021 2020

8.81 % 6.47 %

Interpretation:

This ratio has decreased by 6.47 % in the year 2020 and increased by 8.81 % in the year 2021. The

bank improves its staff turnover in the year 2021.

Earning Per Share:

2021 2020

4.71 2.63

Interpretation:

EPS has increased by 4.71 times in the year 2021 and decreased by 2.63 times in the year 2020. The

reason behind the decrease in the year 2020 is, 16 % decrease in profit after taxation while shares have

been same in all three years.

Dividend Payout:

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 2021 2020

26 % 38 %

Interpretation: This ratio has increased by 38 % in the year 2020 and increased by 26 %

in the year 2021. The bank increased its dividend payout and gave Rs. 1 dividend on

every share. In the previous two years, the bank gave Rs. 0.75 per share.

SKILLS & KNOWLEDGE ACQUIRED

4-weeks internship at Punjab Bank will positively impact my career. Many things I have learnt there. I

have come to know that how to deal with customers at the bank and how to facilitate them with basic

information. I used to give duty on the floor. When a customer entered the branch, I welcomed them

and asked for the purpose of their arrival and gave them a token or gave the answer about their different

queries.I also communicated to them about the relevant officer who could give them service. In some

way, I was able to learn some marketing there.

I understood practical knowledge and process of biometric, opening an account, the necessity of

compliance, clearing and its types, acceptance and issuance of cheque books / ATM cards, CBC,

Dormant account activation, payment of salary, check the balance in the account, pay the order, CDR

and basic nature of banking.

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skills I got or Things that I did myself are written below

• Fill Deposit slips, cheques

• Fill Forms (e.g., FATCA, CRS, KYC, and SS card etc.)

• Acceptance and Issuance of Cheque Books/ATM cards (Delivery of ATM captured also)

• Cheque Book/ATM card balancing

• CBC

• Biometric

• Entries in Register (regarding acceptance of post)

• Photocopy, scanning and telephone calls

I had a worthy experience at the bank because there was a challenging environment for everyone who

works there. The staff taught me very well. I didn’t feel that they were annoyed by my questions. I am

pleased to have a good working experience in the bank.

CONCLUSION

The whole experience of the internship was very beneficial and useful. I valued my stay at the bank

because it gave me practical knowledge about the banking field. The staff and overall environment of

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the bank were very supporting. The employees and their proper guidance aided me in understanding the

operations and functions very well.

The 4 weeks spent at the Bank of Punjab, no doubt a source of immense learning for me. This practical

training program did not only help me to acquire substantial knowledge about the predominant

functions performed by banking companies, but also imparted a lot of training as regards the set of

behavioural traits which distinguish a particular person from the rest of the lot, in a professional

environment. At this point, it is certainly significant to write a word of gratitude for the University’s

administration, which makes sure, that all the students get exposure to practical life in relatively well-

reputed organizations. I learnt a lot from my supervisor and understood the operations of banking.

I must share the fact here that writing this internship report was an evenly memorable experience as

actually ‘doing’ the internship. I truly hope that this report also certifies the fact that all of my worthy

teachers performed their duties of academic guidance and moral mentoring with utmost efficiency and

effectiveness. This internship enhanced my capability and skills.

RECOMMENDATIONS

Despite hardworking staff, reputed organization, effective and efficient dealings with the business point

of view, there always exists room for improvement. In light of the Knowledge obtained during the

internship and studying the organization, I have some suggestions, which can help the bank in further

escalating its status as a serving organization. Following are various types of recommendations for the

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Bank of Punjab and by following these recommendations this banking company can achieve better

performance in all aspects considered necessary for the banking market:

• In order to capture a considerable share in the banking sector of the country, the prime objective

should be awareness in the general public. For this BOP should launch A well planned extensive

advertising campaign in the general public

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