Business Project On Bank Of Punjab

By

Faisal Raza

2020-GCUF-083297

Business project submitted in partial fulfillment of The requirements

for the degree of ADP – (Commerce)

PAK INDUS INSTITUTE

GOVERNMENT COLLEGE UNIVERSITY,

FAISLABAD

September 2022

I
It is hereby certified that the report has been thoroughly and carefully read and
recommended to the Faculty of Management Sciences for acceptance of Internship
Report by
Faisal Raza Roll No 201660 session (Fall-2020 to Spring-2022), Morning. I have
submitted this report in partial fulfillment of the requirements for the degree of Bachelor
of Business Administration of G.C University, Faisalabad.

Supervisor Name ________________________________

Supervisor Signature _____________________________

External Examiner Name __________________________

External Examiner Signature ________________________

Head of Department ______________________________

II
 DECLARATION

I, hereby declare that all the information furnished in this Internship Report is my original
work containing authentic facts. This piece of work is only submitted to Lahore Leads
University in the partial fulfillment for the degree of (Professional) Bachelor of
Commerce.

Date: ______________ Signature of Student __________________

Faisal Raza
B.COM
201660
Pak Indus institute
G.C University
Faisalabad

III
 G.C University Faisalabad
BONAFIDE CERTIFICATE

Certified that this Internship Report “Marketing of BOP (THE BANK OF PUNJAB)” is
the bonafide work of “Faisal Raza” who carried outunder the project work under my
supervision.

________________________ ___________________________

SIGNATURE SIGNATURE
Mr. Bilal Saeed Dr. Naveed Ahmad

SUPERVISOR HEAD OF DEPARTMENT

G.C UNIVERSITY
DEPARTMENT OF ADP COMMERCE
G.C University Of Faisalabad

IV
 Dedication

I dedicate this work to my honorable parents and respected teachers and friends who have
been a great source of love, and help me because it would not have been possible
affection and encouragement throughout my academic career and their matchless
sacrifices in the process of my upbringing make me respectful to all human talk. I was
provided with every facility by my parents who were necessary in order to complete this
challenge assignment.

In the last but not least I am thankful to my teachers who thought their diligence and care
enabled me to successfully complete my studies and assigned tasks. My teachers have
been a source of inspiration for me and created an urge to seek the knowledge and
develop some degree of intellect.

Faisal Raza

B.COM

201660

Pak Indus institute

G.C University
Faisalabad

V
 Executive Summary

The Bank of the Punjab was incorporated in 1989, pursuant to The Bank of Punjab
Act1989, and was given the status of a retail bank in 1994. The Bank of Punjab was
found by Tajammal Hussain and it functions as a scheduled commercial bank, with a
networkof 450 branches in major business centers throughout the country. The Bank of
Punjabhas implemented different policies to make it one of the best banks of Pakistan,
whichincluded introducing new products and services and increase its operations by
openingnew branches in Pakistan. The Bank of Punjab is dealing in Foreign Currency
Accounts,ForeignRemittancesand ForeignBillsforCollection, importsand Export. BOP is
a good organization with a long-term rating of AA- and short-term rating of
A1+givenbyPACRA.Thereisahierarchyinthemanagementfromtoplevelmanagementtolow
er-level managementasshownbyhierarchychart.

BOP has an organizational structure which is formalized, specialized, standardized

andthereishierarchyofauthority.Bankfollowsaspecificriskmanagementframework.Thereis
a compliance statement management have to follow in financial reporting. There is
awell-
developedhumanresourcesfunctioninthebankmanagingadiverseemployeebaseof4,674emp
loyees.

The employees are hired on different basis such as regular, contractual, temporary
andcasual. There are clear appraisal methods where employees are compensated on
basisof performance. The bank of Punjab is offering a diverse range of products and
servicesto attract customers from every group of public. There are 3 different categories
ofproducts i) deposit products- no profit is offered on them they are current accounts.
ii)Profitsharingproducts-ontheseproductsprofitisofferedthatdifferincaseofsavingand
Fixed deposits usually profit range from 5% to 8% in most of fix deposits profit is
creditedhalf yearly but there are some accounts such as CPA where profit is credited on
dailybasis.iii)Loanproducts-thereare5typesofloanproductstofulfilltheneedsofdifferent
sectors of society Bankis offering 21 types ofagriculture loans.
Bankalsoprovidesdifferentservicessuchasutilitybillswhereitearns18rupeesoneachbill. It
provides locker services and other also. SWOT analysis of BOP show that bankhave a
number of i) strengths i.e. customer care, diversity of products, better image,electronic
banking ii) weaknesses i.e. lack ofspecialization, centralization, less
jobsatisfactioniii)alotofopportunitiestoimprovebecauseofitsdiversificationandbranchesinr
emoteareas iv)threatsalso i.e.competitors,high employeeturnover.

VI
VII
 Acknowledgement
Countless thanks to almighty Allah, the lord of the whole universe and the greatest
forcebehindmysuccessinmylife.Itismypleasureandboundendutytoacknowledgewithallhum
ility that the preparation of this report has been a transcontinental matter with
therespectableteacher and Staffofbank.

First of all I have achieved great intellectual depth only because due to my
brilliantteachers for their creative guidelines, back up, unflinching support, understanding
andtolerant behavior that has given me a valuable chance for practical research, and now
Icannot get last in the shadows what I have achieved. It is incredible how many of
theinsightsthatonegainsasstudentofasuperbresearcherandteacherliveonwiththerestofone's
life.

My work has greatly added by Mam Shama Rani who is the manager of The Bank of
Punjab ALI Town Lahore Branch and Mam Rohi who is system administrator
andthewholeteam BOP branch. And the Account officer Rehmatullah. This gives me
immense pleasure to record that they help me tounderstand the problem and find the
reasons of the problem. I would like to express myheartiestthanks to allofthem.
Finally, I would like to acknowledge the support of seniors and special thanks for
theirvaluablesuggestions.

VIII
Contents
CHAPTER #1 (INTRODUCTION OF INDUSTRY AND THE FIRM) ................ 1
1.0 HISTORYOFBANKING .......................................................................................................... 1

1.1BANKINGINPAKISTAN ............................................................................................. 2
1.2 COMPANY HISTORY............................................................................................... 3
1.3 HISTORYOFBOP................................................................................................... 3

1.4 COMPETITORS .................................................................................................................... 4

1.5 VISION AND MISSION STATEM .................................................................................. 6

1.6 Core value ....................................................................................................... 6

CHAPTER # 2 (BUSINESS OPERATIONS) .................................................. 7

2.0 ORGANIZATIONAL STRUCTURE........................................................................ 7

2.1 STRUCTURALDIMENSIONS............................................................................... 7

2.1.1 FORMALIZATION ......................................................................................................... 7

2.1.2 SPECIALIZATION .......................................................................................................... 8
2.1.3 STANDARDIZATION ...................................................................................................... 8
2.1.4 HIERARCHYOFAUTHORITY ............................................................................................. 8
2.1.5 PROFESSIONALISM ...................................................................................................... 8
2.1.6 COMPLEXITY .............................................................................................................. 8
2.1.7 CENTRALIZATION ........................................................................................................ 8

2.2 BRANCH ORGANIZATIONAL STRUCTURE ......................................................... 9

2.2.1 CRO (CUSTOMER REPRESENTATIVE OFFICER): .................................................................. 9

IX
 2.2.2 RO (REMITTANCE OFFICER): ......................................................................................... 9
2.2.3 CO (CASH OFFICER): ................................................................................................... 9
2.2.4 CM (CASH MANAGER): ............................................................................................. 10
2.2.5 RM (RELATION MANAGER): ....................................................................................... 10
2.2.6 SM (SALES MANAGER): ............................................................................................. 10
2.2.7 RO (RESPONSIBLE OFFICER):....................................................................................... 10
2.2.8 RM (RELATION MANAGER): ....................................................................................... 10

2.3 OPERATIONS/ ACTIVITIES DEPARTMENTS ..................................................... 10

2.3.1 DEPOSITPRODUCTS ................................................................................................... 11

2.3.2LOANPRODUCTS ....................................................................................................... 18

2.4 SERVICES ....................................................................................................... 24

CHAPTER # 3 (BUSINESS ANALYSIS) ......................................................26

3.1 SWOTANALYSIS ............................................................................................. 26

3.1.1 STRENGTHS ............................................................................................................. 26

3.1.2 WEAKNESSES ........................................................................................................... 28
3.1.3 OPPORTUNITIES ....................................................................................................... 29
3.1.4 THREATS ................................................................................................................. 30

3.2 PEST ANALYSIS .............................................................................................. 31

3.2.1 POLITICAL ............................................................................................................... 31

3.2.2 ECONOMICAL........................................................................................................... 31
3.2.3 SOCIAL ................................................................................................................... 31
3.2.4 TECHNOLOGICAL....................................................................................................... 31

3.3 PORTER’S FIVE FORCES MODEL ..................................................................... 32

3.3.1 BARRIERS TO ENTRY: ................................................................................................. 32

3.3.2 BARGAINING POWER OF SUPPLIER:............................................................................... 32
3.3.3 BARGAINING POWER OF CUSTOMERS: .......................................................................... 33

X
 3.3.4 AVAILABILITY OF SUBSTITUTE PRODUCT: ........................................................................ 33
3.3.5 RIVALRY AMONG THE COMPETITORS: ............................................................................ 33

3.4 COMPETITIVE STRATEGY ............................................................................... 34

3.5 BUSINESS PROCESS ANALYSIS........................................................................ 34

CHAPTER # 4 (LEARNING AS A STUDENT INTERNEE) .............................35

4.1 PLAN OF MY INTERNSHIP PROGRAM............................................................. 35

4.1.1 STARTING AND ENDING DATES OF INTERNSHIP ................................................................ 35

4.1.2 NAME OF TRAINING DEPARTMENTS AND DURATION ........................................................ 35

4.2 SIX WEEK INTERNSHIP ................................................................................... 36

4.2.1 FIRST AND SECOND WEEK .......................................................................................... 36

4.2.2 THIRD AND FOURTH WEEK ......................................................................................... 36
4.2.3 FIFTH WEEK ............................................................................................................ 36
4.2.4 SIXTH WEEK ............................................................................................................ 36

4.3 TRAINING PROGRAM .................................................................................... 36

4.3.1 FIRST DAY IN BANK OF PUNJAB .................................................................................... 36

4.2.2 ACCOUNT OPENING DEPARTMENT ............................................................................... 37

4.4 ACCOUNTS DEPARTMENT ............................................................................. 38

4.5 REMITTANCE DEPARTMENT .......................................................................... 39

4.5.1 DEMAND DRAFT ....................................................................................................... 39

4.6 CLEARING DEPARTMENT ............................................................................... 39

4.6 HUMAN RESOURCE DEPARTMENT ................................................................ 40

4.7 ISSUING OF CHEQUE ...................................................................................... 40

4.9 ADVANCE AND CREDIT DEPARTMENT ........................................................... 41

4.9.1 PRINCIPLES WHILE ADVANCING .................................................................................... 41

XI
4.10 DUTIES ........................................................................................................ 41

4.11 ACCOMPLISHMENTS .................................................................................... 42

4.12 NEW KNOWLEDGE ACQUIRED ..................................................................... 42

CHAPTER # 5(CONCLUSION,RECOMMENDATION) ................................44

5.1 CONCLUSION ................................................................................................. 44

5.2 RECOMMENDATION ...................................................................................... 45

BIBLIOGRAPHY .................................................................................................... 46

SOURCES ............................................................................................................ 46

XII
 Chapter 1

(Introduction of industry and the firm)

1.1 HISTORYOFBANKING

The Bank is a financial institution which is licensed by the government. Its primary
activities include borrowing and lending money. The name bank is derived from the It
ali an word “BANKO” which means “Desk/ Bench”. This word traces its origin back to
the Ancient Roman Empire, where moneylender holds further evidence of banking.
Greek temples, as well as private and civic entities, conducted financial transactions such
as loans, deposits, currency exchange, and validation of coinage. There is evidence too
of credit, whereby in return for a payment from a client, a moneylender in one Greek
port would write a credit note for the client who could "cash" the note in another city,
saving the client the danger of carting coinage with him on his journey. Pythias, who
operated as a merchant banker throughout Asia Minor at the beginning of the 5th century
B.C.,
isthefirstindividualbankerofwhomwehaverecordsusedtosetuptheirstallsinthemiddleofthee
nclosedcourtyardonalongbenchcalledBanco,fromwhichthewordBankoandBankare
derived.

Thefirstbankswereprobablytheplacesreservedforreligiousactivitiesweredoneintheancient
time and were probably established during the third millennium B.C. Banksprobably
predated the invention of money. Deposits initially consisted of grain and
laterothergoodsincludingcattle,agriculturalimplements,andeventuallypreciousmetalssucha
s gold in the form of easy-to-carry compressed plates. Temples and palaces were
thesafestplacestostoregold astheywereconstantlyattendedand wellbuilt.

InthelatethirdcenturyB.C.,thebarrenAegeanislandofDelos,knownforitsmagnificentharbor
and famous temple of Apollo, became a prominent banking center. As in Egypt,cash
transactions were replaced by real credit receipts and payments were made basedon
simple instructions with accounts kept for each client. Ancient Rome perfected
theadministrative aspect of banking and saw greater regulation of financial institutions
andfinancial practices. Charging interest on loans and paying interest on deposits
1
becamemorehighlydevelopedandcompetitive.
During the reign of the Roman emperor Gallienus (260-268 AD), there was a
temporarybreakdown of the Roman banking system after the banks rejected the flakes of
copperproducedbyhismints.
WiththeascentofChristianitybankingbecamesubjecttoadditional restrictions, as the
charging of interest was seen as immoral. After the fall
ofRome,bankingwasabandonedinWesternEuropeanddidnotreviveuntilthetimeofthecrusad
es.

1.2 BankinginPakistan
Banking is one of the most sensitive businesses all over the world. Banks play an
important role in the economy and are considered as the backbone of an economy in
every country and Pakistan is no exemption. Banks are custodian to the assets of the
general masses. The banking sector plays a significant role in a contemporary world of
money and economy. It influences and facilitates many different but integrated economic
activities like resources mobilization, poverty elimination, production and distribution of
public finance.

Pakistan has a well-developed banking system, which consists of a wide variety

ofinstitutionsrangingfromacentralbanktocommercialbanksandtospecializedagenciesto
cater for special requirements of specific sectors. The country started without
anyworthwhile banking network in 1947 but witnessed phenomenal growth in decades
tocome. By 1970, it had acquired a flourishing banking sector. Nationalization of banks
inthe seventies was a major upset to domestic banking industry of the country,
whichchangedthewholecomplexionofthebankingindustry.Withirrationaldecisionatthetop,a
ll the commercial banks were made subservient to the political leadership and
thebureaucracy. The commercial banks thus lost their assets management
equilibrium,initiativeandgrowthmomentum.Theyceasedtobeabusinessconcernandbecameb
igbureaucracies.
Today, the banking sector is providing financial solutions to the masses and is
growingand becoming a solid partner in the development of the Pakistani economy, this
growthpotentialhasseendifferentacquisitionsinthebankingsector,withtheStandardChartered
and Union Bank being.

2
1.3 Company History

The bank of Punjab has developed its roots and grown enough to withstand
exogenousshocks but has played a major role in improving standard of living the middle
class andlower income groups, who had no access to credit, hitherto before. BOP’s
system
byopeningitsdoorsformortgage,automobileandotherconsumerdurables,hasbroadenedthe
borrower base and brought in its fold individuals who had never used bank credit fortheir
financing needs. This initiative is moving through a difficult stage, owing to
thefinancialmeltdownandnaturaldisastersinPakistanandgreateffortshavetobemadeinorderto
maintain momentum.

Sinceitsreorganization,TheBankofPunjabhassuccessfullysurmountedthechallenges thrown
in its direction by senior management and a number of initiatives
andinnovationshavebeensuccessfullyimplementedinthebackdropofourmissionstatement,
“Passion Reborn”. In that, the bank maintains a competitive edge in
qualityproducts,highreturns&minimumrisklevel.Ouractivitiesaregearedtowardsdeveloping
and implementing SOPs within values of our Bank and the State Bank’s
directivesreceivedfromtimetotime. Management is playing active role in supporting bops’
vision of providing
employmentopportunities&shelteringtomassesofPunjabthroughdifferentSchemes.Thededi
catedteam is working indefatigably & tirelessly round the clock even on off days in order
tosustaincompetition,increasegoodwill,maximizereturns&attaincustomers’satisfaction.BO
P has aligned its innovative Consumer Products to meet customers’ needs &
providestateoftheartservicesthroughdedicatedConsumerFinancingCenters(CFCs).

1.4 HistoryofBOP
The Bank of The Punjab was incorporated in 1989, pursuant to The Bank of Punjab
Act1989, and was given the status of a retail bank in 1994. The Bank of Punjab was
foundby Tajammal Hussain and it functions as a scheduled commercial bank, with a

3
networkof 360 branches in major business centers throughout the country The Bank of
Punjabhas implemented different policies to make it one of the best banks of Pakistan,
whichincluded introducing new products and services and increase its operations by
openingnew branches in Pakistan. The Bank of Punjab is dealing in Foreign Currency
Accounts,Foreign Remittances and Foreign Bills for Collection, imports and Export. This
branch isestablishedin2002 and major in Operation

4
 Chapter 2

Competitors
The competitors of the Bank of Punjab are the other commercial banks in Pakistan such
as 6:

 Soneri Bank Limited,

 United Bank Limited,

 Allied Bank Limited,

 Askari Bank Limited

 Faisal Bank Limited,

 Standard Chartered Bank Limited,

5
2.1 Vision and Mission Statement

V I SI ON
STATEMENT

““Your banking partner

in creating value and
improving lives “with
MISSIONSTATEMENT

“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”

2.2 Core value

Ourcustomer asourfirstpriority
Profitability fortheprosperityofourstakeholders
Corporatesocial to enrich the lives of community where we operate
ResponsibilityRecognition and for thetalented and high performingemployees
Reward
Excellence ineverythingwedo
Integrity inallourdealings
Respect forourcustomerandeachother

6
(Business Operations)

2.3 ORGANIZATIONAL STRUCTURE

The organizational structure of Bank of Punjab is Functional. Most of the

departmentshave been divided on the basis of functions. Although the currentstructure of
theorganization promotes economies of scale because all employees are located in
thesame department and share the same resources but this structure has also
restrictedcoordinationamongthedepartmentsandhenceleadtoalesserdegree of innovation.

Inordertohaveaflat,fastandagilecorporatestructure,theoperatingmodeloftheBankwas
restructured in line with internationally acceptable banking standards. A number
ofpoliciesandproceduresincludingtheprudentriskmanagementhavebeenputinplace.

2.4 Structural Dimensions

2.4.1 Formalization

7
Bank of Punjab is highly formalized. The reason is that the customers are to be
satisfiedand the management can’t bear any negligence in the customer’s records. To
have aproperand quickdatabaseof customers,formalization isthere.

2.4.2 Specialization

TherearedifferentdepartmentsinBankofPunjabandeachdepartmentisperformingitsowntask
s soSpecialization ishigh.

2.52.1.3 Standardization
There are rules and regulations and policies for the bank. Every department in the
bankhastofollowtherulessothere is standardization inthebank.

2.5.1 HierarchyofAuthority

SpanofcontrolinBankofPunjabissmallbecausefewemployeesarereportingtothesupervisor.

2.5.2 Professionalism

ProfessionalisminBankofPunjabisveryhighbecausetheemployeesarebeingtrainedbefore
the job and there is a training session once in a year for the employees about
thenewtrends inbankingindustry.

2.5.3 Complexity

Whenapersoncan dodifferentintheorganizationitisknownascomplexity.Complexity in
Bank of Punjab is high. The reason is that the employees are
capableenoughtoperformtheworkingofdifferentdepartmentsin thebank.

2.5.4 Centralization

Whenthetopmanagementsetsgoalforthewholeorganizationitisknownascentralization.
Centralization in Bank of Punjab is high as goals and decisions are madeatthe toplevel
andtheemployeeshave towork tofulfillthosegoals.

8
2.6 Branch Organizational Structure

2.6.1 CRO (Customer Representative Officer):

A bank customer service representative is someone whose role is to provide information

regarding to the bank’s product and services to their customers. And also handles
responsibilities of handling any inquiries and resolving customer complaints.

2.6.2 RO (Remittance Officer):

In general remittance is the act of sending money to pay for something. Remittance is a
transfer of money by foreign workers to an individual in their country. RO deal every
aspect of remittance.

2.6.3 CO (Cash Officer):

CO receives payment by cash, cheque, credit cards and vouchers etc. Cash Office
Associates are in charge with managing cash transactions in a company. Essential job
duties seen on a Cash Office Associate resume sample are executing transactions, making
cash deposits, delivering reports to managers, developing more effective methods of

9
accounting for company cash, and making sure each transaction has been put into the
daily log.

2.6.4 CM (Cash Manager):

CM responsible for all the aspect of cash management function, effective collection of
revenues and payment of obligations. It also includes daily cash administration,
management of current account and bank relation.

2.6.5 RM (Relation Manager):

Relation Manager would deal with individual customers and advise them on various
banking and financial products and services offered by bank.

2.6.6 SM (Sales Manager):

Sales Manager manages the achieving growth and hitting sales target by successfully
managing the sales team.

2.6.7 RO (Responsible Officer):

A bank compliance officer researches, implements, and manages the areas of banking
regulations and laws, banking policies and procedures, consumer protection, and public
interest laws. They may work closely with the Chief Operating Officer (COO) in
overseeing compliance procedures and might also advise on risk management.

2.6.8 RM (Relation Manager):

Relation Manager would deal with individual customers and advise them on various
banking and financial products and services offered by bank.

2.6.9 OPERATIONS/ ACTIVITIES DEPARTMENTS

2.7 Products andServicesoffered byBank ofPunjab

I. Deposit Products

10
 II. Profit Sharing

III. Loan Products

IV. Services

2.8 Depositproducts
 CurrentAccounts

The Accounts shall be opened upon submission of duly filled-in Bank’s

prescribedAccountOpeningFormproperlyintroducedinthemannerprovidedandonsubmitting
allsuchdocumentsasmayberevisedbytheBank.TheBankreservestherighttodemandsuchrelev
antdocumentsevenafteropeningof accountasdeemednecessary.
 Features
 TheBankhastherighttorefusetoopenanAccountwithoutassigninganyreason.
 The Accounts shall be opened with an initial/minimum deposit as stipulated by the
Bankfromtimetotimeunless specificallyexempted.

 AccountfortherecipientofZakatorrecipientofgrantsfromBait-ul-
Mall,maybeopenedwithaninitialdepositofRs.100/-
(introducedvideInstCir#97/129dated25.11.1997&Inst Cir 98/53dated03.06.1998)

 TheAccountsmaybeopenedsinglyinonenameorjointlyintwoormorenames.

 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.
 Withdrawalswillnotbeallowedagainstpostdated(payableonanyfuturedate)andstale(0
6 months afterissuance date)Chequesand againstun-clearedfunds.
 AllCDaccounts whicharenotoperateduponbytheaccountholdersforaperiodofone.
Year will be classified as dormant. After passing one year in the dormant status,
that is,no operation in the account for a continuous period of two years, the
account shall beclassifiedas inoperative.
Year will be classified as dormant. After passing one year in the dormant status, that is,no
operation in the account for a continuous period of two years, the account shall
beclassifiedas inoperative.
11
 BOPsharingaccounts

BOPSharingAccountcanbeopenedwiththeminimuminitialdepositof Rs.1000.

 Features
 NoprofitwillbePayable.
 Nofee(servicecharges)formaintainingsuchaccountswillbecharged.
 There will be no limit to maintain minimum balance. If balance in BBA does
remain "NIL"fora continuous6monthperiod,suchaccountswill be closed.

 Account holder will be allowed a maximum of 2 deposit transactions and 2

checkingwithdrawals, free of charge either through cash/through clearing per
month otherwiseservice charges of a regular banking account shall be applicable
for that month as perBank'sScheduleofCharges.

 UnlimitedfreeofchargeATMwithdrawalsfromBank'sownATM'swillbeallowed.Inca
seof withdrawals from BBA though the ATM Machine of other Banks, the
Charges of theseBanksshallbe applicableforsuch transaction.

 ProfitSharing

 PLSSavingAccount
 SeniorCitizensSavingaccount

 GharaylooSavingAccount

 ZiadaMunafaSharingAccount

 PLSSavingProfitPlusAccount

 CorporatePremiumAccount

 CorporatePremiumTermAccount

 MunafaHeMunafaTermAccount – III

 BOPTijaratAccount(LCY)

12
  BOPPLSSupremeSavingAccount

 BOPFCYSupremeCurrentAccount

 PLSSavingAccount

The Accounts shall be opened upon submission of duly filled-in Bank’s

prescribedAccountOpeningFormproperlyintroducedinthemannerprovidedandonsubmitting
allsuchdocuments.

 Features
 The Bank reserves the right to demand such relevant documents even after
opening ofaccountasdeemednecessary.

 PLSSavingsAccountsmayalsobeopenedbycharitableinstitutions,forProvidentFund
sandotherfundsofbenevolentnaturebyLocalBodies,AutonomousCorporations,Com
panies, Associations, Societies, Educational Institutions, Firms etc. and in all
othercaseswheresuchaccountsarerequiredtobeopenedundertheordersofCompetent.
 Court of Law. Not more than one PLS Savings Account may be opened at a
branch inany one name except in the name of a parent or guardian for more than
one child or forkeepingfundsof
specifiednaturecategorybyanentity,withtheBank’spriorapproval.

 SeniorCitizensSavingAccount

Thisisasavingbankproductavailableforallseniorcitizensi.e.personsof60yearsandabove
who are eligible to open a saving account as per our Bank’s criteria. The accountcan be
opened singly or preferably jointly (husband & wife) provided either of them is of60
years or above. This product is designed to attract deposit/savings of senior
citizensbyofferingattractive,innovativeincentivesandhigherrateofprofitto seniorcitizens.

Features
 A customer can open only one BOP Senior Citizens Saving Account singly or
jointlyregardless of the branch. In case it is found out that more than one account
exists
underthiscategory,theBankreservestherighttorecover&forfeittheprofitspaidornotto
giveany profit. The account can be opened with a minimum initial deposit of
13
 Rs.10, 000/-.However in case average deposit during the month falls below
Rs.10, 000/-, accountmaintainingchargesshallbelevied as
perBank’sScheduleofCharges.

 GharaylooSavingAccount

This is a saving bank product available for all females who are eligible to open a
savingaccount as per our Bank’s criteria. The account can be opened singly or jointly
withhusband. This productis designed to procuredeposit/savingsofladies
particularlyhousewivesof expatriates &students.

2.8.2

 ZiadaMunafaSharingAccount

This is a saving bank product available for general public i.e. persons who are eligible
toopen a saving account as per our Bank’s criteria. The account can be opened singly
orjointly. This product is designed to attract deposit/savings of general public
particularlysalariedpersonsand smallinvestors.

Features
 AcustomercanopenonlyoneBOPGharaylooSavingAccountsinglyorjointlyregardles
softhe branch.

 The account can be opened with a minimum initial deposit of Rs.10, 000/-.
However incase average deposit during the month falls below Rs.10, 000/-,
account maintainingchargesshallbeleviedasper Bank’s ScheduleofCharges

 PLSSavingProfitplus Account
UnderthisschemeIndividuals,corporations,organizationsandvariousprovincial/federalgover
nmentdepartmentscanopenthis accounts.

Features
 Thisisanoperating/ checkingaccount.
 Theaccountscanbeopenedinindividualorjointnames.

 CorporatePremiumAccount

14
Thisaccounthasbeenintroducedforcorporate clients.

Features
 Thisisanoperating/checkingaccount.
 Profit on the account will be calculated on daily product basis by determining the
slab onthe basis of average balance maintained in the account. The deduction of
Zakat andWithholdingtaxwill be applicable asper lawof theland.

 Profitispaidonhalfyearbasis.

2.8.3

 CorporatePremiumTerm Account

ThisAccounthasbeenintroducedforcorporateclients.
Features
 This is non-operating/checking account.
 ThedeductionofZakatand withholdingtaxisapplicableasperlawoftheland.
MunafaHeMunafaTermAccount–IIIProfitRate:
Table
Term Expected MinimumAmountofD ProfitperMonth
Profit eposit
Rate
1Month 7.00% 100000 Rs.583

3Months 8.75% 100000 Rs.729

6Months 9.25% 100000 Rs.771

1Year 10% 100000 Rs.833

 BOPTijaratAccount(LCY)

This Account is opened for Businesses. It has many facilities. For

15
exampleChequeReturnCharges
arenotdeductedforthreemonthsiftheaccountholderhasupto500000inhis account.

 BOPFCYSupremeCurrentAccount

ThisisaForeignCurrencyAccount.ThisAccountcanbeopenedinanyofthetwocurrencies:
ItcanbeopenedinUS.
$,oritcanalsobeopenedinEURO.ManyincentivesareprovidedtotheseAccountholders.

 BOPFCYSupremeSavingAccount

ThisisalsoaForeignCurrencyAccount.ThisAccountcanbeopenedinanyofthetwocurrencies:
Itcanbeopened inUS$. Itcan alsobeopenedin EURO. Theseclientscanavaila
lotoffacilitiesusingthisAccount.

2.8.4

 BehtareenMunafa Account

It is a saving account for general public, govt. /semi govt. organizations, companies,
business entities etc. who are eligible to open account as per bank’s criteria.

 Tajarat Current Account

BOP Tijarat Account is a current account especially designed to cater needs of business
Individuals as well as Business entities including but not limited to Proprietorships,
Partnerships, Limited / Unlimited Companies, NGOs, NPOs, Trusts , business oriented
government / Semi government entity a and any legal entity.

 Youth Education Account

It is a current account especially designed for young students of schools, colleges and
universities up to 30 years of age with additional feature of Education Insurance.

 Salary Account

It is a current account designed for salaried individuals working for an organization that is
maintaining its salary disbursement account with BOP with a focus on employees of

16
govt/semi govt organizations, their allied corporations, autonomous bodies and private
sector entities.

 Basic Banking Account

It is a current account available especially for customers like students, mustehkeen-e-

zakat, salary accounts of government and semi government employees, pensioners,
widows and children of deceased employees eligible for family pension/benevolent fund
grant.

 Assan Remittances Account

Opening of a bank account to receive home remittances from our dear ones is not easy
nowadays and involves a long list of formalities. The Bank of Punjab has introduced
"BOP Asaan Remittance Current Account" to facilitate opening of bank accounts by low
risk/ low income unbanked/ under banked customers for receipt of home remittances
directly into bank account instead of resorting to traditional over the counter cash
transactions. These segments of society may include but are not limited to
skilled/unskilled work force, farmers, less educated/uneducated people, laborers/daily
wagers, women/housewives, self-employed individuals, pensioners, young adult
population etc.

 PLS Saving Bank Account

It is a saving account available for general public, govt/semi govt organizations,

companies, business entities etc. who are eligible to open account as per bank’s criteria.

 Corporate Premier Account

This is a saving account especially designed to cater the needs of business

entities/corporate entities. Account can be opened singly or jointly

 Youth Loan saving Account

It is a saving account which provides a disciplined method of savings for children. The
account will be opened with Parent/Guardian.

 KissanDost Saving Account

17
BOP KissanDost Saving Account is a saving account Agricultural Business Solution to
cater to banking needs of agricultural sector.

 Foreign Currency Saving Account

This is a foreign currency saving account available for all customers who are eligible to
open foreign currency account with BOP as per Bank’s criteria.

2.3.2 LoanProducts
I. CommercialFinance

II. ConsumerFinance

III. ConsumerBanking

IV. AgriculturalCredit

 Commercial Finance

 RunningFinance

Ithasthreetypes:
AgainstPledgeofShare
againstGovt.Securities
AgainstHypothecationof Stocks

 DemandFinance

This by nature is considered as a secure Advance. Facilities of this account can only
beavailed by the customer on receipt of a formal DAC issued by RCAD and duly signed
byCAD Head.

 CashFinance

This facility is provided against pledge of goods. The amount is disbursed in

speciallyopenedaccountforthepurpose.Thepledgedgoodsarereleasedtotheborroweragainstt
hepayment of cash.

 Requirements:
18
 Thisfacilityis disbursedin speciallyopenedCFA/C.
The good which are being pledged should be free from Credit restrictions imposed
byStateBank of Pakistan.
ThegoodshallbeMarketableandtheirpricesshallnotbefluctuating.

 Consumer Finance

 Loan

Itis personal LoanfacilitytopurchaseConsumer DurableGoods

ofselectedcompaniesonBank’s

 DocumentaryRequirements:

1. ApplicationForm

2. CNICCopy

3. LatestSalarySlip

4. 6monthsBankstatement

5. EmployerCertificate

6. UtilityBills(electricity,Phone)

2.8.5

 QuickCash

QuickCashisarunningfinancefacilityprovidedtosalariedindividualsthroughtheirbankaccoun
t.AccountholdergetbetweenRs.50000toRs.500000baseduponhisincome.

Requirements:
Accountholdermustbeapermanentemployeeoftheselectedorganizationhaving3yearsofjobex
perience.
Contractualemployeesarealsoeligiblebutloanshouldbeadjustedbefore6monthsoftheexpiryo
f thecontract. MinimumtakehomesalaryshouldbeRs.15000.

 Car Loan
19
Govt.employee/Pvt.Employee/Businessmen/Professionalscanavailthisfacilityforthe
purchase of brand new and locally manufactured car for personal use. Minimum
amountof loan is Rs.200000 and Maximum is Rs. 5000000. Insurance will be mandatory
for thispurpose.

2.8.6RequirementsforBOPEmployees

1. Salariedpersonmaintainingaccountwiththebank.

2. Havingagebetween25and59.

 HouseLoan

Govt. employee/ Pvt. Employee/ Businessmen/ Professionals can avail this facility.
TheMarkup Ratewillbe charged on Floatingrate.

RequirementsforSalariedperson:
1. Havingage between25to69years.

2. MinimumtakehomesalaryshouldbeRs.20000.

3. Minimum3yearsincurrentbusiness.

4. CNICCopy

5. LatestSalarySlip

6. 6monthsBankstatement

7. EmployerCertificate

8. UtilityBills(electricity,Phone)

 SmartCashPersonalLoan

This scheme is personal DF facility for Bank’s target market for meeting their
personalneeds. This
loan is repayable through monthly installments. The borrower can takemaximum of Rs.
500000for loan.

Requirements:
1. Havingagebetween25to69years.

20
 2. Minimum1 yearofjobexperience.

3. MinimumtakehomesalaryisRs.5500.

4. CNICCopy
5. LatestSalarySlip

6. TwopersonalguaranteesofGovt.employees.

 Furniture and CrockeryLoan

Furniture and crockery financing scheme is for the purchase of Furniture and
Fixturecrockery.Borrowercanpurchaseallleadingbrands.HecantakemaximumofRs.500000
0for loan.

Requirements:
1. Havingagebetween25to69years.

2. Minimum1yearofjobexperience.

3. Govt.employeeshouldbeingrade17orabove.

4. ArmedforcesMajor orabove.

5. SalariedpersonorBusinessmanhavingAccountinthebank.

 ConsumerBanking

 CleanPakistan-CNGFillingStationScheme

This type of loan facility is provided to promote the business of CNG Filling station
inPakistan.Peoplefulfillingtherequirements ofthebank caneasilyavailthisfacility.

2.8.7

i. LadyEntrepreneurFinancing Scheme

Thisisarunningfinanceschemetomeettheworkingcapitalrequirementsofabusiness.Borrower
scantakeanamountbetweenRs.100000toRs.500000forloan.Markupratewill be floating rate.
Requirements will be the same as the requirements for the Houseloan.

ii. AutoLeaseFinancingScheme
21
 Thisfacilityistoprovideleasefacilitytobusinessconcernsandindividualsforpurchasingof light
commercial vehicles, commercial vehicles, buses, trucks, lifters etc.
throughbranchnetwork.Peoplecanhavethisfacilityaftertherequiredprocedureofbank.

iii. CarDealersFinancingScheme

Cardealersmeetingtherequirementsof thebankcanhavethisfacility.

iv. KarobarBarhaoScheme

ThisisaDemandFinanceRunning/Financefacilitytomeettheworkingcapitalrequirementsfort
hebusiness.Bankcansanctionthisloanaftertherequiredprocedure.
FertilizerDealersFinancing
SchemeThisisaDealers/FranchisefinancingschemeforFertilizerstopurchasefertilizers for
theirbusiness.

v. AliAkbarGroup-FranchiseFinancingScheme

AliAkbarGroupisawellreputedOrganizationworkingforthedevelopmentofagriculturesectori
nPakistan.This Schemeis launchedtofacilitate this organization.

vi. AliAkbarGroup-FranchiseFinancingScheme

AliAkbarGroupisawellreputedOrganizationworkingforthedevelopmentofagriculturesectori
nPakistan.This Schemeis launchedtofacilitate this organization.

vii. AtlasHondaLimited-AuthorizedDealersFinancingScheme

ThisisMotorcycledealerfinancingschemewhichprovidesloanfacilitytothedealersforthesatisf
actoryconduct oftheirbusiness.

2.8.8

2.8.9

viii. FinancingScheme-PurchaseofOffice/Shops

ThisisDemandFinancetypeofloananditprovidesassistancetothepeopleforthepurchase
of OfficeandShops.

22
ix. AgriculturalCredit
1. GreenTractorLeaseFinance(New)

2. AgriFinanceBranches(New)

3. AgriculturalFinanceScheme

4. KissanDostTractorScheme

5. SecondHandTractorLeaseScheme

6. KissanDostAabiariScheme

7. KissanDostMechanizationScheme

8. KissanDostFarmTransportScheme

9. KissanDostCommercialAgroScheme

10. CorporateFarmingFinancingScheme

11. KissanDostCommercialAgroScheme

12. KissanDostAgriMall Scheme

13. CorporateFarmingFinancingScheme

14. CommercialLeaseFinanceTractorScheme

15. DemandFinance-ShedsConstructionandCivilWorks

16. LeaseFinanceFacilityforMilchAnimals

17. RunningFinance-Livestock/Poultryand FishFarms

18. KissanDostModelDairyFarms(PDDC)

19. KissanDostModelMilkCollectionCenter(PDDC)

x. Non-Fund BasedProducts
1. DocumentaryLetterofCredit

2. StandbyLetterofCredit

23
 Chapter 3 2.3.4 SERVICES
I. CommercialBanking

II. Corporate&Investment

III. CashManagementSystem

IV. UtilityBills

V. Lockers

i. CommercialBanking
The Commercial Banking Group has been formed to cater the needs of small &
mediumsize customers for increasing bank’s business. Commercial Banking deals with
thecustomers having sales turnover and aggregate credit exposure as per
benchmarkprescribedinStateBank ofPakistan’sPrudentialRegulations.
The emphasis of this Commercial Banking Group is to meet necessary business needsof
customers which are numerous as compared to CIB clients but their individual
creditrequirementsare relativelymuch smaller.

ii. Corporate&Investment
This Group performs functions through the following two units:CorporateBanking
Investmentbanking

iii. CorporateBanking
The Corporate Banking works for market new clients and to retain existing
relationshipsandbuildmarketsharethroughofferingsuperiorservices,competitivepricingand
wide

ProductrangetovaluedcorporateclientsincludedMultinationalCompanies(MNCs).Thisunit
hastremendousgrowthpotentialsofcorporateaccountsandcontributestothemajorearningof
Bank.

iv. Investmentbanking
The Investment Banking Group (IBG) specializes in providing innovative and
uniqueadvicetoitsclientstoassisttheminmeetingchallengesinanever-
changingmarket.Thisunit is equipped with experienced professionals. Investment

24
 Banking Unit offers fullspectrum of services, which includes TFCs, Syndicated
Finances, Structured Finances,Project Finance, Quasi-Equity Products, Independent
Advice, Equity Placements, IPOs,Equity Underwriting, Mergers, Corporate
Restructuring, Acquisitions and other products.ThisUnitalsoworks on andprovides.

v. CashManagementSystem
Cash Management System is a process of collection and payments on behalf of
theCustomers using Bank Network. The objectiveofCashManagement Systemis
tofacilitateorganizationswithmultiplecollectionpointsingatheringCash/Fundandmakingthe
mavailableincustomeroperatingaccount.Italsofacilitatesdisbursementoffrequentand Bulk
Payments to multiple locations. This should be accomplished with minimalsupervision
by customer, supported by an automated system to provide timely servicesto the
customers.

vi. UtilityBills
The bank collects all kinds of utility Bills including Electricity, Gas and Telephone
fromcustomer. All branches of the Bank collect Utility Bills during banking hours which
arereceivedthrough cash.

Chapter 4

Chapter 5

Chapter 6

25
 Chapter 7 CHAPTER # 3 (Business Analysis)

Chapter 8 3.1 SWOTANALYSIS

SWOTisstandsforstrengths,weaknesses,opportunitiesandthreats.SWOTanalysisisacareful
evaluationofanorganization’sinternalstrengthsandweaknessesaswellasitsenvironmentalop
portunitiesandthreats.InSWOTanalysisthebeststrategiesaccomplish an organization’s
mission by exploiting an organization’s opportunities andstrengths while neutralizing its
threats and avoiding its weakness. During my internship
Ialsoobservethesefactorsofbankandmadeaconclusion whichisasfollows

8.13.1.1 Strengths

 TheBank ofPunjabImage

Bankof
PunjabisareputablefinancialorganizationandiswellknownalloverthePakistan.Perceptionis
ofproducingahigh qualityservices.Since,inceptionof Bank of Punjab, it has moved
rapidly in expanding branch network and deposit
base,alongwithmakingprofitableadvancesandincreasingtherangeofproductsandservicesba
nk have made a break-through in providing premier services at an affordable cost toour
customers. Bank of Punjab has been awarded an AA- (double A minus) and an A1+(A
one plus) in the long and short term respectively by the PACRA. These rating
denoteveryhigh credit quality andverylowexpectation.

Themainsourceofafinancialinstitutionispublicsavingsinthisregardpublicconfidenceplays a
vital role. So, the confidences of customers are the main strength of Bank
ofPunjab.Inordertomaintainaneffectivecommunicationofinformationregardingtheneedof
valued client’s bank has designed its website to be as user-friendly as possible.
Thisfacilitates to pursue the path of excellence and customer satisfaction through
deliveringhigherqualityofservices,therebyaddingsynergytoourexistingmanagementexpert
ise,financialstrengthandprofitability.Hence,it’sachannelofcommunicationforthedeliveryof
qualityproductsandservices.

26
 CustomerCare
TheBanknot only provideshighquality servicesbutit alsolook for thecomfort
andconvenienceof theclients,BOPalways preferredtheircustomers.

 MarketShare
BOPhascoveredmuchofthepotentialmarketandthenetprofitisincreasingyearsafteryears.De
posits andadvances havesufficientlyincreased.

 LargenumberofdiversifyProducts
Thisisalsoitsmainstrengthasithasdiversifiedinmanyproductsinitsnotonlyinitsconventional
but alsoin Islamic banking.
Such as:
 Debit card

 VisaCard

 Car Financing

 HomeFinancing

 MoneyGrams

 ImportandExportFacility

 AgricultureFinancing

 AutomaticOperations
Theoperationsperformedbythebankarehighlyautomatedthatresultinassuranceforthecustom
ersthattheirtransactionsarecompletedreliably,efficientlyandsecurely.

 Full DayBanking
Onecanavailthebenefitoftheservicesprovidedatthebanktill5:00P.m.whichishighlyusefulfor
those customerswhofinditdifficultto leavetheirofficersinthemorning.

 ATMNetwork

27
The bank has the largest ATM Network across the country. The customers of
BOPwithdrawaccess theirfundsanytimeatallthe ATMSites.

 CustomerOrientedNetwork
Theprioritybankingcentersofthebankofferanunmatchedwherethecustomerreceiveshighlyp
rivilegedservicesinahighlyelegantenvironment.Itgivesthechanceofexperiencing new
standards in banking. Designed especially for those who
appreciateonlythefinestthingsinlife,PriorityBankingofferstheveryhighestlevelsofpersonali
zedbankingtomatchcustomer’sunique

 ElectronicBanking
The revolution in the banking in the form of electronic banking operations have
openedavenues of excellent, efficient and quick services saving the time and costs of
thecustomers and fortunately BOP is among those few banks who are already reaping
thebenefitsof electronic transactions.

 ElectronicFundTransfer
BOP management is quite prepared to adopt the latest advancements in
technologyresultinginrevolutioninthebankingoperationssuchascheckclearingprocess,com
puterbasedtellerequipment,automatictellermachines,andelectronicfundstransfersamongth
eothers.

 BranchNetwork
It is the greatest strength of the Bank. With the expansion of bank branches all over
thecities in Pakistan has increased its market share and No. of customer. The
branchnetwork is according to the target market and the people look very satisfied with
thebankingsystemand theirprogress too.
PhoneBanking
EveryaccountholdercanconfirmitsbalanceonPhoneandmayaskforanyquery.Therearealso2
4hours helplinesfor customers.

8.23.1.2 Weaknesses
As per Bank policy, advertising and publicity is not extensively emphasized.

28
 Throughadvertisementcustomerscouldbekeptabreastwiththeproductsandservices.

ThemainfocusofBankismajorcitiesofPakistan.Itisdirelyneededtoextenditsnetworkand
people should be educated about the functioning of bank. Hence, bank could availan
excellent deposit rate by using its annual budget specified for network extension.Henceit
weakens its progress.

 LowJobSatisfaction
Understandingandtheeffectivemanagementofthehumanresourcesisthemostdifficultchallen
gefacednotonlybythebankbutbyalltheorganizations Eventhoughthepeoplehave been
sacrifice in the new organizational developments, it is becoming clear thatthe true lasting
competitive advantage comes through human resources and how
theyaremanaged.BOPseemstonotfocusingonthishighlycriticalissueasthejobsatisfactionleve
loftheemployeesworkingat BOP,was quitelow.

 LackofSpecialization

ThisfamousandusefulconceptgivenbyAdamSmithin1776seemstobemissinginthebank.Thee
mployeesareconstantlyrotatedfromonejobtoanotherjoboftotallydifferentcharacteristicinthe
viewofgivingthem the know-howof theworkingin allthe departments. But I think this is
not a very good tactics used by the management.Otherwisethesituationmight
belikethis‘Jack ofallandmaster ofnone.’

 Centralization
There is a high degree of centralization in the bank. Almost all the decision-making is
inthe hands of the upper management. But centralization is effective up to a certain
levelotherwiseit becomes inefficientandat timescostlytoo.

8.33.1.3 Opportunities
The life cycle of an organization is comprised of threats as well as opportunities. If
wesay,todaytheratesofchallengesaretoohighbutsimultaneouslytherateofopportunitiesis also
high. It is mandatory to try to make progress with consistency as well as to
adaptchangeswiththeneedsoftime,inordertocopeupwithbothconditions.Intheprevailingscen
ario, Bank of Punjab could penetrate further and could capture various
corporatecustomersinadditiontothe retailcustomersbyexpandingtheirnetwork.

Inadditiontotheexcellentroutinebanking,ithasearnedagoodnamebyofferingspecialproducts
29
like car financing, home financing and debit card. So, the penetration of
theseproductscouldenhancethemarketshare.BankofPunjabhaslaunchedanotherdivisionkno
wn as Islamic Banking. This new aspect will also attract a large number of
people,whodon’twanttodealwithinterestbearingbanking.Hence,it’sanewopportunitywherec
ompetitorsare limited.

 Diversification
They may enter in new business or any other consumer-durable product in order
topromotetheirname,byintroducingLoanforthestudents,smallbusinesses,andhandicraftindu
stry.

Thesearepositiveexternalenvironmentalfactorseffectingtheorganization.

 Itdealsinbulkbusiness.

 Alargeamountofforeigninvestmentisattracted.

 Strongpotentialforgrowth

 SteadyincreaseinCustomerDeposits

 BranchesInRemoteAreas

 IslamicBanking

 Sharpincreaseinimportsandexports

 Attractiverateof return

8.43.1.4 Threats
While doing business, threats are part of the game. Especially, in this era, most of
thefinancialinstitutionsareworkingasPrivateLimitedCompanyandfacingorhaveafearofthre
atfromtheircompetitor as wellas newentrants.

Inordertomaintainaswellastoenhancethemarketshare,banksalwaystrytointroducenewsche
mes/packages.Hence,theenvironmentisverymuchinnovativeandadaptiveto the needs of
customers.

30
 Chapter 9 3.2 PEST ANALYSIS

9.13.2.1 Political
Bank of Punjab is owned by the Punjab government as it hides most of its shares. But
unfortunately, the branch has not been given a complete product line as it is still in the
opening stages. Politically, most of the market in KP is owned by the Bank of Khyber as
it is owned by the local market.

9.23.2.2 Economical
The economy of any country has a deep impact on any financial organization. Economic
indicators include Gross Domestic Product (GDP), inflation, balance of payments, debt of
the government. These below graphs will explain how economic conditions of Pakistan
are adversely affecting the banking system of Pakistan.

The pitiable economy of Pakistan and instable government is adversely affecting BOP
and its different departments; Recently BOP has redundant many of its employees. The
economy of our Pakistan is very poor. Due to poor economy businesses are showing low
profits and Pakistan stock market is in great danger. Pakistan’s foreign debts are rising
day by day, so such a situation is a huge challenge for BOP to survive. Due to financial
crisis in Pakistan the management of BOP has to face stressful situations and also
working environment. At present the BOP is not extending loans but recovering the
existing ones.

9.33.2.3 Social
BOP has been influenced by the socio-cultural factors. At present most of the European
countries are keeping their eyes on Pakistan as being the terrorist country, so people of
Pakistan are emotionally getting affected by it. Most of the foreign investments have been
stopped in Pakistan. Pakistani people are traditionalists who do not like the modern
banking environment of BOP. Some of the customers do not use ATMs they still prefer
cash counters, so these kinds of socio-cultural factors affect the banking environment and
its operations.

9.43.2.4 Technological

Technology has a deep influence on different kinds of organizations whether banks or any

31
kind social welfare organizations. In BOP technology has great effect on the working
environment. Mostly all banks use computers none of the banks keep data manually so
the bank has to be continuously in touch with the modern ways of task performance. BOP
is always ahead to introduce new computer systems for keeping its staff up to date. The
intranet facility is playing an important role in enhancing the knowledge of staff. Due to
technology that bank staff keeps in touch with the customers through e-mail; ATMs and
online banking is only possible due to technology. In this way technology is playing its
key role in and is helping management to further improve its functions.

Chapter 10 3.3 PORTER’s FIVE FORCES MODEL

10.13.3.1 Barriers to Entry:

The BOP is providing value added services to its customers. On the other hand market is
getting more saturated and other organizations are getting involved in the bank
operations. For example, Telenor is offering Easy Paisa, etc. At the beginning all the
functions like money exchange, currency converter, FOREX, money transfer, etc. were
relates to bank but now a day other organizations are becoming more specialized in these
and hence resulted in declining of profit (commission income or service charges).

10.23.3.2 Bargaining Power of Supplier:

Because of concentrated competition and new entrance of foreign banks in the industry
the investors are becoming more conscious in providing the funds for deposits. The funds
are dispersed among the banks because every bank in the industry wants to capture these
funds (from potential investors) hence to increase its market share and to generate more
and more profit. It is the fact that supplier’s funds are more critical to market success.
Due to which the bargaining power of supplier has been increased.

Financial statements of BOP reveal that deposits with the bank are decreased from 83% to
79% during the last seven years.

32
10.33.3.3 Bargaining Power of Customers:

Customers can be powerful when the switching cost is very low and in the banking sector
the customer’s needs includes favorable profit on investment and getting banking services
with low cost. All the banks in Pakistan are competing for healthy market share so they
are trying to provide the better services from other banks by giving more incentives on
their services as a result of which the bargaining power of customers has been increased.
Hence the BOP is facing great difficulty in sustaining his competitive position in the
market and this is done by providing more are more value added services to its customers.

10.43.3.4 Availability of Substitute Product:

Substitute products are also available in the market like MobiCash services by Mobilink
GSM, Easy Paisa by Telenor Pakistan both are used for transfer of money between two
customers. There is also an example of PayPal, Alert Pay, etc. are best alternatives for the
transferring of money all across the globe with minimum charges or service fee. All these
substitute products are creating a big hurdle in earning commission and generating
revenue for the bank.

10.53.3.5 Rivalry among the Competitors:

The intensity of competition in an industry depends upon bulk of factors such as number
of competitors, the presence of exit barriers, degree of product differentiation and growth
rate.

Taking only one factor in due consideration “the degree of product differentiation” it can
be seen that all the banks are providing same kind of services but with different names. It
means that the degree of differentiation for the products is near to zero and it is fact that
when the degree of product differentiation is less the competition is high because
customer’s switching cost eliminates. For example, NBP, BOP, Summit Bank, BOK etc.
are offering the services for transfer of money with the help of Xpress Money. And some
other banks like Bank Al-Habib, MCB, Bank Alflah etc. are using Money Gram for the
same activity.

33
 Chapter 11 3.4 Competitive Strategy

The bank of Punjab is working on a 5 competitive strategy in the following are

1. controls and compliance,

2. Technology

3. deposit mobilization particularly private sector deposits and floor deposits (current
or savings)

Chapter 12 3.5 Business Process Analysis

Business Process Management with a demonstrated history of working in the banking
industry. Skilled in business Process Documentation, Cash management, Policy
framework, Operational Risk, Business Continuity management, Internal controls,
Analytical Skills, Banking, Credit Analysis, and Commercial Banking. Strong consulting
professional with a ACPA-Associate Certified Public Accountant focused in PUBLIC
ACCOUNTANCY from ICPA

 To Analyze and provide advice on methods and organization.

 To conduct research to determine efficiency and effectiveness of managerial

policies and programs pertaining to operations.

 Cond To conduct assessments and propose improvements to methods, systems

and procedures in areas such as operations, records management and
communications.

 To Prepare and recommend proposals to revise methods and procedures, alter

work flows, redefine job functions and resolve problems.

 To assist in implementing approved recommendations, issuing revised instructions

or procedural manuals and drafting other documentation

 Assist To assist in implementing internal control / best industry practices

deliverables.

 To supervise, train & guide the staff in new work methods.

34
 Chapter 13 CHAPTER # 4 (LEARNING AS A
STUDENT INTERN)

Chapter 14 Learning as a Student Intern

Chapter 15 4.1 Plan of My Internship Program

Operations of the branch are controlled by Branch Manager and Operations Manager.
Staff of the branch includes Branch System Administrator, Operations Staff including:

 Grade I officer

 Grade II officer

 Grade III officer

 A cash officers

 Billing officer

15.14.1.1 Starting and Ending Dates of Internship

I started internship on 25- 06- 2022, To 26-08- 2022

15.24.1.2 Name of Training Departments and Duration

The duration of the internship program was 1.5 months. The staff of the branch was much
cooperative. They imparted me training in all departments of the branch i.e.

 Accounts Opening

 Accounts Department,

 Remittance Department,

 Clearing Department,

35
 Chapter 16 4.2 Six Week Internship

16.14.2.1 First and Second Week

In the first two weeks of the internship, I worked in Accounts Opening Department in
which I learnt how to open an account, how to close an account and how to operate an
account.

16.24.2.2 Third and Fourth Week

In the third and fourth week, I worked in Accounts Department in which I learnt various
functions of Accounts Department.

16.34.2.3 Fifth Week

In the fifth week, I worked in Remittance department where I learnt and worked in Entry
of remittance instruments in the system and preparation of physical instruments

16.44.2.4 Sixth Week

In sixth week of internship, I worked in Clearing Department where I learnt about Inward
Clearing and Outward clearing.

The Bank of Punjab had changed its online banking system to Flex cube Universal
Banking System. My supervisor had asked me to sort out the Cheques and vouchers and
attach the vouchers with the bank statements of the customers.

Chapter 17 4.3 Training Program

17.14.3.1 First Day in Bank of Punjab

On first day of my program, I was briefed by the branch manager about different branches
of the bank. I was also told about the major rules and regulations which were being
observed by the management of the bank. I was also briefed by the Manager Operations
which proved as a miles stone during my internship program. I also met different
members of the staff in different branches of the bank which helped me to obtain basic

36
knowledge about those branches. Then I started my working in account opening
department.

17.24.2.2 Account Opening Department

ProcedureofOpeningan Account
 CompletionoftheForm
 Basiccustomerinformation

 Customername

 Fathername

 Mothermaidenname

 CNICnumber

 NationalTaxnumber

 Currenthouseno

 Permanenthousenumber:

 Contacnumbers

 Profession

 Employerdetails

 SpecimenSignatureCard(S.S.Card)

 Chequebookrequisition

 Operatinginstruction

 Typeofaccount
 Currencyforaccount

 Incaseofdeathhowwilloperatetheaccount

 Agreementontermsandconditions

 Onlineaccount
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  AllotmentofAccountNumber

 Letterofthankssenttocustomer

 Issuanceof aChequebook

 EntryofaChequebook

 Acknowledgementofletterofthanks

 FillingOfAccountOpeningForms

 FillingofRequest

 MaintainingtheComputerRecord
Completion of the Form

Account form is then completed in all respect and checked by the bank officer and is duly
signed by the customer which is also verified by the Operational Manager.

Specimen Signature Card (SSC)

Signature specimen card is compulsory for opening an account in the bank. Without
getting signature of the customer account cannot be opened.

Chapter 18 4.4 Accounts Department

When I completed my training in Account Opening Department, the Branch Manager

sent me to Account Department.

Account department is responsible for budgeting keeping record of the revenue and
expenses all transaction that are take place in the bank and their physical prove (voucher)
are come to the account department next day these voucher are also posted to computer
and the computer generated report of daily transaction is created in IT department and
then they send to the account department to match or tell to computer generated report
and their voucher of daily transaction and save it as a physical record that these
transaction are take place in the bank at following date. The report generated by the
accounts department on a daily, weekly, monthly, bi-yearly and yearly is written in a
proper format. It is neither necessary nor possible to get up to date all of these reports in a
short period of time.
38
Some of the common reports are: Monthly Assets & Liabilities, Monthly Budget Review
Report, Monthly Monitory statement, Monthly Performance Review Report and Monthly
fixed investment. For these statements, five reports carry extreme importance. The five
reports are: Daily position of advances and deposit, Statement of affairs, Daily exchange
position report, fixed assets statement and Monthly review of performance.

Chapter 19 4.5 Remittance Department

Remittance department transfers the fund form one bank to another bank and one place to
another place. In this department collection take place. The bank of Punjab makes
payment of only open Cheque on the counter and prohibits the payment of crossed
Cheques. Bank of Punjab transfer money from one place to another place by way of
payment order, demand draft, inward collection, outward collection.

19.14.5.1Demand Draft
An order to pay money to the payee who is residing outside the city, Demand draft can be
for a customer who may or may not have and account in the bank but the other person’s
account must be maintained with the bank for which the payer has demanded the demand
draft.

4.5.2 Payment Order

Pay order is order money but this payment is to be made within city. In other words, it
can be said that the payee and the payer should be in one city. In pay order payment can
be made in cash, clearing and transfer.

Chapter 20 4.6 Clearing Department

I learnt they’re about clearing of different Cheques and remittance handling. I was told
there the main objects of clearing.

I received all the clearing Cheques and made a schedule of these Cheques after making
entries in outward and inward clearing registers and sent the same to main branch where
at all the Cheques were sent to NIFT (National Institutional Facilitation Technology)

39
NIFT

NIFT stand for National Institutional Facilitation Technologies. Clearing house of SBP
has shifted a part of its work to private institution names NIFT. NIFT collets Cheques,
demand draft, pay order, traveler’s Cheques etc. from all branches of different banks
within city through its carriers and send them to the branches on which these are drawn
for clearing. NIFT prepare a sheet for each branch and send it to each branch as well as to
State Bank of Pakistan where accounts of Banks are settled.

Chapter 21 4.6 Human Resource Department

Human resource (HR) includes all the issues related to employees and the resources that
every branch of the bank has accessed

HR department contains the inward mail maintaining an inward mail registered and
outward mails i.e., mails from other branches or bank, stationary of the branch and the
important instrument prepared by the specific company

Chapter 22 4.7 Issuing of Cheque

Then another task for me was “issuing of Cheque books”. It is one of the most interesting
works that I have learnt in the bank. Cheque books should be issued only after all the
formalities of the account opening forms, which have been checked by the branch
manager.

 Maintaining Dispatch register and Inward Mailing register was also included in
duties assigned to me. I also used to help different employees in their work.

 My work timings were from 9am to 5pm, six days in a week.

Voucher checking

Afterwards I have learnt about vouchers, checking of vouchers is essential to confirm

that correct calculation has been done. Vouchers are properly bind sealed and
checking by the manager. I have checked the following things:

 The check should not be post-dated/anti-dated.

40
  Amount in words and figures tallies.

 Cash paid stamps (with dates) are duly affixed in case of cash cheques and in case
of clearing stamps is affixed.

 Cutting/over writings are duly authenticated by the account holder, etc.

Chapter 23 4.9 Advance and Credit Department

Advances and credit department is the most important department in the bank in this
department advances are giving to the businessman, exporter etc. before giving advance,
credit worthiness of the borrower is taken into account i.e. character, capacity, collateral,
credit terms etc. advances are also given to different banks.

23.14.9.1 Principles while Advancing

Five principles that must be properly pragmatic while advancing money to borrowers’ i.e.

 Safety,

 Liquidity,

 Disposal,

 Remuneration and

 Suitability

Chapter 24 4.10 Duties

Managing client bank accounts, including opening and closing accounts, and overseeing
transactions. Processing deposits, payments, and withdrawals. Authorizing and
evaluating overdrafts and loans.Provides account services to customers by receiving
deposits and loan payments, cashing checks, issuing savings withdrawals, and recording
night and mail deposits. Sells cashier's checks, traveler's checks, and series e bonds

41
 Chapter 25 4.11 Accomplishments
 Wards and achievements

 No. 1 Bank Award for Successful Youth Program.

 Bank performing best in successful youth program.

 Number one bank through JPMorgan Bank.

 Excellence Award from Central Board of Revenue.

 Third Farmer Time Awards.

 Best Corporate Report Award.

 16th Bolan Excellence Award.

 Achievement Award.

Chapter 26 4.12 New Knowledge Acquired

Six-week internship at Punjab bank will surely impact my career in a positive way.
ManythingsIhavelearntthere. I
havecometoknowthathowtodealwiththecustomeratbankandhowtofacilitatewiththebasicinf
ormation.DuringthistimeperiodIthistrainingmademecapableofopeninganaccountandwhatar
etheinformationsrequiredfromcustomer. KYC
(knowYourCapital)istheconsideredveryimportantinbanking.Ialso came to know how
clearing department works and which are the parties involved in itwhatis
theprocedureofclearingfor inwardand outwardclearing.

I am pleased to have a good working experience in remittance department. There wasvery

strict rule and regulation to be followed in this department in connection to the
cashroom.WorkinginthisdepartmentprovidedmeadditionalinformationaboutDD(DemandD
raft), PO (Pay Order) and CDR (Call Deposit Receipt). I learnt what is demand
draft,payordershowitisprepared,andwhichpartiesareinvolvedinit?Iamnowquietfamiliarwith
the clearingprocedurefor OBC andtheinternaltransfer atbank.

Bank of Punjab is undergoing a radical shift, one driven by new competition from,
42
changing business models, mounting regulation and compliance pressures, and disruptive
technologies.

4.13 Problems Encountered

Bank of Punjab startups is changing the competitive landscape in financial services,
forcing traditional institutions to rethink the way they do business. As data breaches
become prevalent and privacy concerns intensify, regulatory and compliance
requirements become more restrictive as a result. And, if all of that wasn’t enough,
customer demands are evolving as consumers seek round-the-clock personalized service.
These and other banking industry challenges can be resolved by the very technology
that’s caused this disruption, but the transition from legacy systems to innovative
solutions hasn’t always been an easy one. That said,

 Increasing Competition.

 A Cultural Shift.

 Regulatory Compliance.

 Changing Business Models.

 Rising Expectations.

 Customer Retention.

 Outdated Mobile Experiences.

 Security Breaches

4.14 How Experience Impacts My Career

The positive impacts of this internship on my career:
a) Job experience I have gained valuable exposure to how business is run, how
meetings are conducted and how tasks are performed in real world setting.
b) Research experience I have gained knowledge about how research is done before
designing a new product. Different researches are carried out to make product
that is unique and different than those of competitors.
c) Access to variety of departments I have experienced how all departments
coordinate and work together in achieving the organization goals.
43
 d) Helped me to decide career goals Internship have helped me to decide which jobs
fit my personality and skills. I also met a lot of experienced people who provided
me guidance about my career.

Chapter 27

Chapter 28 CHAPTER # 5(Conclusion,

Recommendation)

Chapter 29 5.1 Conclusion

The whole experience of internship was very good. I enjoyed my stay at the bank.
Thestaff and overall environment of bank is very supporting. Though I am a
commercestudent and, in the beginning, I was unsure about my decision of selecting a
bank
forinternship.ThiswasbecauseIfearedthelackofknowledgeofmanyofthefinancerelatedterms
and jargons which will be used in my new working place. But the employees
andtheirproperguidanceaidedmeinunderstandingtheoperationsandfunctionswell.

The 8 weeks spent at Bank of Punjab, Punjab Co-operative Housing Society Branch,
nodoubt a source of immense learning for me. This practical training program did not
onlyhelp me acquire loads of knowledge about the predominant functions performed
bybankingcompanies,
butalsoimpartedalotoftrainingasregardsthesetofbehavioraltraitswhichdistinguisha
particular person from the rest of the lot in a professional environment At this point
itcertainlyissignificanttowriteawordofgratitudefortheUniversity’sadministration,whichma
kes it sure, that all the students get an exposure to practical life in relatively well-reputed
organizations. I must share the fact that writing this internship report was
anevenlymemorableexperienceas actually‘doing’the internship.Itruly hope that this report
44
also certifies the fact that all of my worthy teachers performed
theirdutiesofacademicguidanceandmoralmentoringwithutmostefficiencyandeffectiveness.

Chapter 30

Chapter 31

Chapter 32

Chapter 33 5.2 Recommendation

The Bank of Punjab is a very good organization. It has earned repute for good
publicdealing and also with the business point of view. Here the customers do not feel
anydifficulty dealing with the bank due to the hard-working staff. Despite this effective
andefficient behavior exhibited by the bank, there always exists a room for improvement.
Ihavesomesuggestions,whichcanhelpbankinfurtherescalatingitsstatusasaservingorganizati
on.

FollowingarevarioustypesofrecommendationsforBankofPunjabandbyfollowingtheserecom
mendationsthisbankingcompanycanachievebatterperformanceinallaspectsconsidered
necessaryfor competingininsurancemarket.

1 BankofPunjabshouldprovidegreaterfacilitiestoitsemployees andgivethembonusesfor
theirhardwork.

2 Bankshouldgivelonglastingimpactofcaringbankingovertheclientsbyprovidingthe
m extra care.

3 BankofPunjabshouldlookformoremarketincorporatesector
45
It seems that the priority is given to the corporate customers in Bank of Punjab as
theindividualsfrommiddleclasshavetoremindthemanagementofcertainbranchtodotheneedf
ul for them Customer is the king and customer always right. Bank is earning profitfrom
the customers. Bank should have a proper relationship with corporate as well asindividual
customers. It is recommended that the management should stress on havingsatisfactory
relationship with individual customers because they can also provide therevenuein termof
profit.

Chapter 34

Chapter 35

Chapter 36 5.3Bibliography

 Annual Reports of bank of Punjab

 New letters of BOP
 Employees
 http://www.bop.com.pk/
 Personal observation

Chapter 37 5.4SOURCES

 http://www.bop.com.pk
 www.google.com
 Annual report
 Personal observation
46
 www.investopedia .com
 http://www.sbp.com.pk/
 http://www.wikipedia.org/
 http://www.ibp.org.pk

47
 Chapter 38 References
I used multiple sources to gather information for preparing report. First of all I
visited company’s website with the help of it I was able to write about profile,
history and introduction of the company then I also used the information
collecting from the staff of the company about working environment, daily routine,
about customers and competitors. My observation (what I observe during my stay
in company) is another factor that was helpful in preparing report.

48
Internship Letter Issue by Bank

49