Banking 1

BANKING LAW AND
PRACTICES
Final term Project
Submitted by:
Fizza Faheem.
Roll no: BC-19- 426.
Submitted to:
Prof. Dr. Ishfaq Ahmad Bhatti.
HAILEY COLLEGE OF COMMERCE

UNIVERSITY OF THE PUNJAB, LAHORE
Contents
Bank of the Punjab......................................................................................................................................4
Company profile:.........................................................................................................................................4
Introduction of BOP:...................................................................................................................................4
Vision statement......................................................................................................................................4
Mission statement....................................................................................................................................4
Core Values “E-time”..............................................................................................................................4
Geographical breakdown of Bank’s branch network...............................................................................5
Departments of BOP....................................................................................................................................5
Cash department......................................................................................................................................6
BOP CASH MANAGEMENT FEATURES:......................................................................................6
Clearing and collection services of BOP.................................................................................................6
Deposit of instruments.........................................................................................................................6
Business development program...............................................................................................................6
Eligibility Criteria:...............................................................................................................................7
PRODUCTS & SERVICES........................................................................................................................8
Current deposits:......................................................................................................................................9
Salient feature..........................................................................................................................................9
BOP SALARY PLUS ACCOUNT..........................................................................................................9
Salient feature..........................................................................................................................................9
BOP YOUTH EDUCATION ACCOUNT............................................................................................10
Salient features......................................................................................................................................10
Current accounts....................................................................................................................................10
Salient features..................................................................................................................................10
BOP CURRENT DIRECT PENSION CREDIT ACCOUNT................................................................10
BOPBASIC BANKING ACCOUNT....................................................................................................11
BOP ASAAN CURRENT ACCOUNT.................................................................................................11
BOP KISSAN DOST CURRENT ACCOUNT.....................................................................................12
SAVING DEPOSITS................................................................................................................................12
BOP PLS SAVING BANK ACCOUNT...............................................................................................12
Salient Features:................................................................................................................................12
BOP BEHTAREEN MUNAFA ACCOUNT.........................................................................................13
BOP FCY SAVING ACCOUNT...........................................................................................................13
BOP YOUNG LIONS SAVING ACCOUNT.......................................................................................13
BOP KISSAN DOST SAVING ACCOUNT.........................................................................................13
PRODUCTS OFFERED BY CORPORATE BANKING..........................................................................14
Corporate Banking loan products..........................................................................................................14
SME products............................................................................................................................................14
Planning.....................................................................................................................................................15
Organizing.................................................................................................................................................15
Digital Banking.........................................................................................................................................15
Refinance Scheme for Special Persons......................................................................................................16
Purpose of Facility:................................................................................................................................16
Target Market:.......................................................................................................................................16
Loan Amount:........................................................................................................................................16
Financing Tenure:..................................................................................................................................16
Markup Rates:.......................................................................................................................................16
Cash deposits.............................................................................................................................................16
SWOT Analysis.........................................................................................................................................17
Strength.................................................................................................................................................17
Weakness...............................................................................................................................................17
Opportunities.........................................................................................................................................18
Threats...................................................................................................................................................18
Accomplishment........................................................................................................................................18
New knowledge acquired..........................................................................................................................18
Recommendation.......................................................................................................................................18
Bank of the Punjab
Company profile:
The Bank of Punjab was constituted pursuant to the BOP Act, 1989. It was given the status of scheduled
Bank by the SBP in 1994. It is principally engaged in Commercial Banking and related services with its
Head Office at Lahore.
Registration Number of the Bank of Punjab with SECP is 0020565. Punjab Modaraba Services (Pvt)
Limited (a wholly owned subsidiary of The Bank of Punjab www.punjabmodaraba.com.pk
Introduction of BOP:
The bank of Punjab was constituted pursuant to the bank of Punjab Act, 1989. It was given the status of a
scheduled bank by the state bank of Pakistan (SBP) on September 19, 1994. It is principally engaged in
commercial banking and related services. The majority shares of the bank are held by Government of the
Punjab. The bank of Punjab is working as a scheduled commercial bank with 284 branches at all major
businesses centers in the country. The bank of Punjab was founded by Tajammal Hussain and it all
functions as a scheduled commercial bank with a network of over 550 branches centers throughout the
country.
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”
Core Values “E-time”.
 Empathy
 Teamwork
 Innovation
 Meritocracy
 Excellence
to ensure best in class customer service.
Geographical breakdown of Bank’s branch network
Departments of BOP
 Cash Department
 Clearing and collection section
 IT Department
 Account opening section
 Account department
 Audit Department
 Consumer Finance Department
 Business Development Department
Cash department
BOP offers full range of Cash Management services aimed at enhancing clients’ liquidity position,
reducing operational cost and improving financial control via accurate and timely reporting. Our success
is primarily attributed to customized solution offerings, team expertise and technology-based product
strategy. We are continuously involved in providing innovative solutions, expanding our
products/services suite and increasing efficiency for our partner clients.
BOP CASH MANAGEMENT FEATURES:
1. Round the clock accessibility through web based portal

2. Transparency and confidentiality of Information
3. Customized reports
4. Periodic/Need based MIS reporting and comprehensive reconciliation with Main Account.
5. Single point of contact for all client queries through dedicated Portfolio Manager.
Clearing and collection services of BOP
Deposit of instruments
All BOP branches are online as such cheques/instruments can be deposited at any BOP branch for
clearing/collection, irrespective of the city/region. The instruments drawn on BOP branches shall be
credited instantly upon realization of proceeds, whereas instruments drawn on other Banks shall be
lodged in outward clearing as under:
Clearing of instruments
BOP is offering following types of clearing services:
1. Same day clearing
 Instruments of Rs.1,00,000 and above are accepted for lodgment in Same day Outward Clearing.
 Instruments can be deposited at any branch authorized for same-day clearing on normal working days as
well as on Saturday, if it is a Saturday opened Branch; however such instruments shall be lodged on next
working day..
2. Overnight /Normal clearing
3.Intercity clearing
Business development program
Bank of Punjab provides another opportunity for the recruitment of Business Development
Officers throughout Pakistan. This is a great opportunity for candidates with a Bachelor’s Degree who
are looking for a job in the banking industry.
This position offers an exciting career with promotions, handsome salaries, other allowances, initiatives,
and an excellent working environment.
Eligibility Criteria:
Minimum Bachelor’s Degree or equivalent degree from an HEC recognized reputed local institute/foreign
university.
Fresh Graduates can apply with confidence. Candidates with relevant experience will be preferred.
Strong work ethics, good negotiation, PR, presentation skills, and competency in verbal communication.
Age not more than 30 years as of April 24th, 2022.
Males, Females, Transgender, and DAP candidates are encouraged to apply
PRODUCTS & SERVICES
Details of some key conventional banking liability products are as under:
Current deposits:
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 and any legal
entity.
Salient feature
• Value added features on maintaining monthly average balance of Rs.25,000
• Free IBFT through ATM
• Free Online Banking
• ATM/Over the Counter Cash Withdrawal Insurance upto Rs.25,000/- per day (terms, conditions
& exclusions of insurance company will apply)
• Business Assets Insurance upto Rs.1 million (terms, conditions & exclusions of insurance
company will apply)
• Free issuance of Debit Card. For free renewals, monthly average balance criteria to be met.
• Free unlimited issuance of Cheque Books
• Free small or medium locker subject to availability & on maintaining monthly average balance of
Rs. 1,000,000. However, Key Deposit to be taken irrespective of maintenance of annual average
balance of Rs. 1,000,000/- and above.
• Free issuance of universal cheques
• Free issuance of CDR
• Free Collection of OBC upto thrice of last month’s average balance.
• Free e-banking facility to view statement of account
BOP SALARY PLUS 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 govt/semi govt organizations, their
allied corporations, autonomous bodies and private sector entities.
Salient feature
• Free issuance of Classic Debit card
• Free online banking
• Free Collection of Outstation Cheques up to 3 Gross Salaries in a Month.
• Free Life Insurance of Rs.500,000/- on maintaining Minimum Monthly Balance of Rs.50,000
(terms, conditions & exclusions of insurance company will apply)
• Consumer Loan Facility on Attractive Terms.
• Option to avail salary loan (terms and conditions apply)
• SMS Alert facility is available subject to payment of annual charges as per bank’s schedule of
charges. • Free of Cost Utility Bills Deposit Facility through BOP ATM Network, BOP Phone
Banking and self-service IVR system is available.
BOP 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.
Salient features
• Students upto age of 30 years will be allowed to open the account in this scheme. If the age of
student is below 18 years, minor/guardian account will be opened and new/normal YEA account
will be opened upon submission of CNIC of the student, as per existing procedure.
• Account can only be opened in Minor/Guardian and Student categories. Joint Accounts are not
permitted.
• There is no minimum balance limit hence account maintaining charges will not be applicable. •
Free PayPak Debit card
• Free issuance of universal cheques favouring any Educational Institution.
• The Student qualifying for education cover must be an account holder for atleast One Calendar
Month.
charges
• Free of Cost Utility Bills Deposit Facility through BOP ATM Network, BOP Phone Banking and
self-service IVR system is available
• Student will be provided Insurance cover as long as he/she is less than 30 years of age or his/her
parent/guardian is in the age band of 18-60 years
Current accounts
This is a basic current account to cater day to day banking needs of general public including individuals,
partnership, Public / Private Limited Companies, Trust, Not for profit organizations, government and
semi government organizations and any type of business entities.
Salient features
• No limit for debit / credit transactions.
charges.
self-service IVR system is available
BOP CURRENT DIRECT PENSION CREDIT ACCOUNT

It is a current account opened in the light of Supreme Court’s SUO MOTO notice (in year 2007)
regarding problems being faced by the pensioners and its subsequent order that pension may be disbursed
through all branches of all the licensed banks in Pakistan. BOP Current Direct Pension Credit Account
can be opened by any individual pensioner. Purpose of account opening will be specifically mentioned on
the AOF as “Direct Credit of Pension” only
Salient features
• No fee or service charges for maintaining such account will be charged.
• Copy of Pension Book mentioning monthly amount of pension and other particulars will also be
required along with other documents as required in case of individual accounts.
• Pensioner & Co-indemnifier will indemnifying the bank (on stamp paper) to the extent of six
month’s aggregate pension amount or authorize the bank to mark lien on his/her account upto this
amount either by depositing cash or by no withdrawal of monthly pension upto six consecutive
months.
charges.
self service IVR system is available.
BOPBASIC BANKING ACCOUNT

It is a current account available especially for customers like students, mustehkeen-ezakat, salary
accounts of government and semi government employees, pensioners, widows and children of deceased
employees eligible for family pension/benevolent fund grant.
Salient features
• The Account can be opened with an initial/minimum deposit of Rs.1,000
• No account maintaining charges
• There is no limit for maintaining minimum balance in the account. However; if balance in BBA
account remain "NIL" for continuous (06) months period, such accounts will be closed by the
bank
• Account holder will be allowed a maximum of 2 deposit transactions and 2 chequing
withdrawals, free of charge either through cash/through clearing per month otherwise service
charges of a regular banking account shall be applicable for that month as per Bank's Schedule of
Charges.
• Unlimited free ATM withdrawals from Bank's own ATMs
charges.
BOP ASAAN CURRENT ACCOUNT

Opening a bank account is not an easy task nowadays. A long list of formalities is required to open a bank
account. The Bank of Punjab has introduced a simplified account "BOP Asaan Current Account". This is
a current account for low risk/low income unbanked/under banked individuals who face difficulties in
account opening due to strict requirements/formalities. These segments of society may include but are not
limited to self-employed, pensioners, students, farmers, women/housewives, young adult population,
work force etc
Salient features
• Account can be opened with minimum of Rs.100
• Account can be opened as individual, joint or minor type.
• Account can be opened with minimum formalities and on one pager account opening form.
• There is no minimum balance requirement, no account maintaining charges.
• The account will preferably be Debit Card based. However, cheque book may be issued as per
choice of the customer.
• Free 1st 25 leaf cheque book
• SMS Alerts service is available at subsidized charges of PKR 40 per month
• Per Month Total Debit Limit and total Credit Balance limit is Rs.500,000
• Account can be converted into normal current account after completion of remaining formalities
if later on, accountholder requires financial services for higher amounts than the above specified
limits.
BOP KISSAN DOST CURRENT ACCOUNT

BOP Kissan Dost Current Account is a current account Agricultural Business Solution to cater to banking
needs of agricultural sector.
Salient features
• Initial deposit required for account opening is Rs. 1,000
• Monthly Average Deposit Rs. 10,000 to be maintained for value added features
• Free issuance of Pay Pak Debit Card
• Free 1st 25 leaf cheque book
• Free 2 Universal cheques per month
• Rate break/discount of 1.00% per annum on all Agricultural(ACD) Financing Products
SAVING DEPOSITS
BOP 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.
Salient Features:
• The Account can be opened with an initial/minimum deposit as stipulated by the Bank from time
to time unless specifically exempted.
• Calculation of profit is on monthly average balance method at minimum savings rate.
• Payment of profit is on half yearly basis.
BOP BEHTAREEN MUNAFA 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.
Salient Features:
• Calculation of profit on monthly average balance basis.
• Profit payment is on monthly basis.
• Free issuance of Classic Debit card.
charges.
BOP FCY 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.
Salient Features:
• Calculation of profit is on monthly average balance
• Payment of profit is on half yearly basis.
• Terms and conditions apply
BOP YOUNG LIONS SAVING ACCOUNT

It is a Saving account which provides a disciplined method of savings for children. The account will be
opened with Parent/Guardian.
Salient Features:
• It is available for children under 18 years of age.
• Account will be opened as Minor account with Child (M)/Parent or Guardian (G).
• Calculation of profit is on monthly average balance basis.
• Payment of profit is on monthly basis.
• Free issuance of first Cheque Book of 25 leaves.
• Free issuance of PayPak Debit card.
BOP KISSAN DOST SAVING ACCOUNT
BOP Kissan Dost Saving Account is a saving account Agricultural Business Solution to cater to banking
needs of agricultural sector.
Salient Features:
• Initial deposit required for account opening is Rs. 1,000
• Monthly Average Deposit Rs. 25,000 to be maintained for value added features • Free 1st 25 leaf
cheque book • Free 2 Universal cheques per month
• Rate break/discount of 1.00% per annum on all Agricultural(ACD) Financing Products
• Profit payment on half yearly basis
• Profit calculation on monthly average basis.
PRODUCTS OFFERED BY CORPORATE BANKING

The Bank of Punjab has recently created a new segment of “Corporate Banking” targeted at providing
seamless banking services to its Commercial and Corporate clients by sharing maximum value with its
relationships and to ensure improved services under one roof. Dedicated teams of Relationship Managers
ensure the delivery of our entire range of financial products and services to our clients and provide
tailored financial solutions to the customers with respect to their business needs.
 Import Financing
• Bills Discounting
• Letter of Guarantees
• Cash Management Services and etc.
• Housing & Construction Finance
• Advisory Services
• Hospital Finance
• Employee Banking
Corporate Banking loan products

• Project Finance
• Debt Syndications and Consortium Financing
• Corporate Finance
• Long Term/Demand Finance
• Working Capital Finance
• Letter of Credit, Contracts and Export collection services
• FE Loans, Pre and Post Shipment Export Financing
SME products
Some of the SME loan products are as under: Product & Services Offered
• BOP Apni Dokan

• BOP Fori Sahulat
• BOP Kamyab Karobar
• BOP Shamsi Tawanai
• BOP Sonay pe Sohaga
• BOP Supply Chain Finance
Planning
1. What to achieve
2. How to achieve
3. Resource allocation
Factor essential for planning:
This is how BOP plans to achieve their goal. The goal of BOP is to increase in profit.
• Motivate people
• Ensure security
• Insurance policies
• Quality services
• Online banking
• Other facilities
Organizing
Organizing involves developing an organizational structure and allocating human resource to ensure the
accomplishment of objectives. CRO(customer representative officer)
 Ro(remittance officer)
 Co(cash officer)
 Cm(cash manager)
 RM(relation manager)
 SM(sales manager)
 Ro(responsible officer)
 RM(relation manager)
Digital Banking
 Digital account on boarding portal
 Security of digital payments
 BOP sadqah jariyah
 BOP scan & pay
 Mobile banking
 Debit cards
Refinance Scheme for Special Persons

Purpose of Facility:
A Term Finance Facility for special persons to help them meet credit needs for setting up of new business
enterprises or for expansion of existing ones.
Target Market:
Special persons holding CNIC with disability logo/symbol will be provided finance for setting up of new
business enterprises or for expansion of existing ones
Loan Amount:
Up to Rs. 1.5 million
Financing Tenure:
Up to 5 years with grace period of 6 months
Markup Rates:
Financing is available at markup rate of 5% per annum.
Cash deposits
BOP offers full range of Cash Management services aimed at enhancing clients’ liquidity position,
reducing operational cost and improving financial control via accurate and timely reporting. Our success
is primarily attributed to customized solution offerings, team expertise and technology-based product
strategy. We are continuously involved in providing innovative solutions, expanding our
products/services suite and increasing efficiency for our partner clients.
SWOT Analysis
SWOT analysis involves following steps:
1. Strength
2. Weakness
3. Opportunities
4. Threats
Strength
1. Supported by Punjab GOVT.

2. Rated among top 6 banks.
3. Wide range of consumer financing.
4. BOP has strengths due to its name Punjab”
5. High credit rating.
6. Huge branches in commercial area.
Weakness
1. Communication gap of higher management
2. Work load on employees
3. Non participation of its products on electronic media
4. Fewer promotion activities
5. Lake of effective modern training
6. Shortage of staff
Opportunities
1. Expand its network in remote areas
2. Encouraging the agriculture loan
3. Increase the investment & financing in the banking sector
4. Expand their product and services to the people
5. Introduce the new schemes related to the consumer
Threats
1. BOP is facing strong competition by its competitors.
2. Low standard as compare to the private bank
3. Misrepresentation
Accomplishment
In this modern era of banking sectors different others banks earns his bank through its brand name but
this bank earns and build up good will in market to competence customers to its outstanding services
New knowledge acquired
The thing which I have learned during the visit is about how to face customers and how to communicate
with them.
Recommendation
• Employees of the bank should be given a task and authority. They should be asked for their
responsibility.
• Good relationship among staff leads to the peak performances in any organization. I observed that
staff relationship was normal.
• There should be an information desk to provide the information to the customers and receive the
complaints of the customer.
• Employees' salaries must increase according to efficiency, performance and service. The behavior
with the customer should be improved.
• The section of utility bills should be improved.

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BANKING LAW AND

HAILEY COLLEGE OF COMMERCE

Bank of the Punjab

"Your banking partner in creating value and improving lives".

to ensure best in class customer service.

Geographical breakdown of Bank’s branch network

BOP CASH MANAGEMENT FEATURES:

1. Round the clock accessibility through web based portal

1. Same day clearing

BOP SALARY PLUS ACCOUNT

BOP CURRENT DIRECT PENSION CREDIT ACCOUNT

BOPBASIC BANKING ACCOUNT

BOP ASAAN CURRENT ACCOUNT

BOP KISSAN DOST CURRENT ACCOUNT

BOP PLS SAVING BANK ACCOUNT

BOP BEHTAREEN MUNAFA ACCOUNT

BOP FCY SAVING ACCOUNT

BOP YOUNG LIONS SAVING ACCOUNT

PRODUCTS OFFERED BY CORPORATE BANKING

Corporate Banking loan products

• BOP Apni Dokan

Refinance Scheme for Special Persons

1. Supported by Punjab GOVT.

New knowledge acquired

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