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 LAHORE

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 DEDICATION

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

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3
 ACKNOWLEDGEMENT
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.

An Internship Program is very much effective for a student to get practical knowledge.
It’s a great opportunity for a student to understand the current market.

I have put my honest endeavour to make the report authentic. I hope this report will
represent my knowledge about the subject allotted to me.

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 TABLE OF CONTENT
INTRODUCTION
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 ----------------------------------------------------------------

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 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 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 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

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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:

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.

Whistle Blowing (WB) Program:

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This WB Program serves to provide a new channel for the bank’s staff, shareholders, vendors,
customers etc. to raise concerns, expose irregularities, help uncover financial malpractices,
prevent frauds, eliminate personnel harassment, point out improper conduct or wrong doing and
attend to grievances of those associated without any fear of reprisal or adverse consequences.
The scope of the program will mainly cover the cases that escaped the existing normal
procedures and systems.

Internal Control Policy:

The purpose of this document is to ensure existence of an effective system of internal controls in
The Bank of Punjab (BoP) that is consistent with the nature, complexity and risks inherent in its
on/ off balance sheet activities and that responds to changes in the bank’s environment and
conditions. Internal control refers to policies, plans and processes as affected by the Board of
Directors (Board) and performed on continuous basis by the senior management and all levels of
employees within the bank.

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 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

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 6 Mr. Shaharyar Ahmad Director

7 Mr. Syed Ghazanfar Abbas Jilani Director

8 Mr. Zafar Masud President &

CEO

MARKETTING MIX

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 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

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 FINANCIAL STATEMENT ANALYSIS

THREE YEARS FINANCIAL STATEMENT ANALYSIS

F0R THE YEAR ENDED DECEMBER 31, 2021

Mark-up/return/intrest earned 29,674,488 31,266,427 29,521,719

Mark-up/return/ intrest expensed 17,430,154 20,198,798 20,525,783

Net-mark up/intrest income 12,244,334 11,067,629 8,995,936

Provision against non performing loans and 922,236 3,431,451 1,11881

advances-net
Provision for diminution in the value of 102,632 64,815 110,881
investments-net
Bad debts written off directly - - -
1,0219,466 3,496,266 1,229,486
Net mark-up/interest income after provission 11,219,466 7,571,363 7,766,450

Non mark-up/ intrest income

Free, commission and brokerage income 974,703 824,126 906,494

Dividend income 61,774 50,843 33,258

Income from dealing in foreign currencies 75,248 109,280 183,830

Gain on sale and redemption of securities 2,525,572 5,013,546 667,322

Unrealized loss on revaluation of investment -1,176 -8,522 -654

classified as held for trading
Other income 1,658,309 1,635,068 1,000,180

Total non-mark-up/intrest income 5,294,430 7,624,341 2,790,430

Non mark-up intrest expenses 16,513,896 15,195,704 10,556,880

Administrative expense 8,346,001 7,389,591 6,215,031

Charge of provission against other assets 569,923 224,382 -2,416

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Provission againstoff balance sheet obligations -485,668 32,274 17,875

Other charges 33,699 19,958 19,727

Total non markup/unusual items 8,463,955 7,666,2o5 6,250,217

Extra ordinary/unusal items

Profit before taxation 8,049,941 7,529,499 4,306,663

Taxation current year 960,820 388,908

Prior years 364,259 143,953

Deferred 1,866,508 2,248,317

3,191,587 2,781,178 0

Profit after taxation 4,858,354 4,748,321 4,306,663

Accumulated loses -5,220,276 -9,113,154 11,250,885

Transfer from surplus on revaluation of fixed assest 54,639 57,738 9,858

– net of tax
Transfer from surplus on revaluation of non 2,513 -
banking assets net of tax
Transfer from surplus on revaluation of fixed assets - 7,133 -980
on disposal
Transfer from statutory reserve to accumulated 2,000,000 _ -
losses
Transfer to statutory reserve -971,672 -949,664 -557,490

Actuarial gains on measurement recognized -64,620 29,350 2,514

Right shares issue cost -4199,416 -9,968,597 11,900,603

Accumulated losses carried forward 658,938 -5,220,276 -7,593,940

Basic earnings per share rupees 3,12 3,05 1,94

Diluted earnings per share rupees 3,12 3,05 1,94

Balance sheet

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 (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

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

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– 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

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

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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

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

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

interest expenses

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

Mark-up/return/intrest earned 29,674,488

Mark-up/intrest expend 17,430,154
Net mark-up/intrest income

Provision against non performing loans

and advances
Bad debts written of directly

Net mark-up/intrest income after

provisions
Non mark-up intrest income
Free commition and brokage income
Dividend income

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Income from dealing in foregn currencies
Gains on sale and redemption of
securities-net
Unrealized loss
Other income
Total non-markup intrest income
NON MARK-UP/ INTREST EXPENSE
Admition expense
Charge of provision against other asset
Provision against off balance sheet oblig
Other charges
Total non mark up intrest exp
Extra oedinary/unusual items
PRPFIT BEFORE TAXATION
Taxation current year
Taxation current year
Prior years
Deffered

PROFIT AFTER TAXATION

Accumulated losses
Transfer from surplus on revaluation of
fixed assets
Transfer from surplus on revaluation of
non banking assets
Transfer from surplus of fixed asset
disposal
Transfer from statutory reserve to
accumulated loses
Transfer to statutory reserve
Actual gains on re measurement
recognized
Right share issue cost

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Accumulated losses carried forward

Basic earning per share

Diluted earnings per share

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