MC180402447

SADIA HUSSAIN
MBA-Exec
BANK OF PUNJAB
Brief introduction of Organization
THE BANK OF PUNJAB WAS FOUNDED BY TAJAMMAL HUSAIN
AND IT FUNCTIONS AS A SCHEDULED COMMERCIAL BANK,
WITH A NETWORK OF OVER 587 BRANCHES IN MAJOR
BUSINESS CENTERS THROUGHOUT THE COUNTRY. IT IS THE
SEVENTH LARGEST COMMERCIAL BANK OF THE COUNTRY.
IT PROVIDES A WIDE RANGE OF BANKING SERVICES
INCLUDING DEPOSIT IN LOCAL CURRENCY; CLIENT DEPOSIT
IN FOREIGN CURRENCY; REMITTANCES; AND ADVANCES TO
BUSINESS, TRADE, INDUSTRY AND AGRICULTURE. FIRST
PUNJAB MODARABA (FPM), A WHOLLY OWNED SUBSIDIARY
OF THE BANK, WAS ESTABLISHED IN 1992, AND IS BEING
MANAGED BY PUNJAB MODARABA SERVICES (PVT) LTD.
 Pest Analysis
Political Factor
Government policies, stability, instability can rule on
banking system. Now days Pakistan is faces very poor
political situations which can also damage banking
core power. If Government can change their policies
frequently than bank can’t decide their rates for
deposits . Due to current situation of Pakistan Bank of
Punjab if facing difficulty in managing rates, deposits,
policies, interest rate, and markup rate.
 Economic Factor

Economic factors GROSS DOMESTIC PRODUCT and

GROSS NATIONAL PRODUCT, Inflation, Deflation.
Micro and macro can affect organization. Fluctuating
economy can harmful for banking sector because bank
can’t manage their rates, and policies. Economy can
affect bank of Punjab positively and negatively because
banking sector and economy are inter related. Due to
pandemic situation of COVID-19 Bank of Punjab
facing many difficulty butt still tries to facilitate their
best to the customers.
 Social Factor

Social changing of people and trend affect banking system because banking system
is all about customer satisfaction .so the companies, business and the other
organization sectors they make environmental analysis in depth .by their analysis
they find the out the change in the people . on that survey they know that what their
customers wants . BOP also makes analysis in the depth to promote their
business .given below are the social factors that usually effect any organization or
the organization should know about them
Lifestyles
Buying habits
Religion beliefs
Health
Social classes
Attitude towards the import goods and services
Attitude towards customer quality
Minorities
 Technology Factor

The technology is changing the way of business

operation and lifestyles of the people; rapidly .in this
era banking or financing sector can also effected due to
low technology .to promoting business is necessary to
maintain the technology .banking sector is also now
developed. The bank of Punjab is developed in the
technologically sector .BOP providing good
technological facilities to their customers which are
satisfied .facilities are as follow
Swot analysis
 Strengths

How they deal with conflict with professionally manner

that’s the core strength of BOP.
Highly trained staff
Maintenance of record
Work speed
Highly maintained management system
Polite and humble customer dealing behavior
No disturbing environment
Clearly known duties.
 weakness
Technological problem among computers
ATM services some time goes down
Low package of advertisement
Bonus and salary packages are low
 opportunities
Should maintain their branches in rural areas
Make advertisement in better medium that people will
attain those offers
Show growth in mortgage lending
Availing new technologies
Manage market resources and sales channels
 Threats
Sometime delay working and pending work can affect
daily work routine
Competitors way of organized policy
Least staff member
Economy situation
COVID-19 effect banking policies and rates.
Ratio analysis
 Net profit margin
Formula = Net Profit/ Revenue

2019 2018 2017

8249/305121=0.2070 7564/177427=0.042 3322/171199=0.019

Net Profit Margin

0.045
0.04
0.035
0.03
Net Profit Margin
0.025
0.02
0.015
0.01
0.005
0
2019 2018 2017
 Non-interest income to total income
 Formula= non-interest income/ total income

2019 2018 2017

3940/26757=0.147 3663/20063=0.1825 4591/15573=0.294

non interest income to total income

0.3

0.25

0.2
non interestincome to total
income
0.15

0.1

0.05

0
2019 2018 2017
 Earnings per share
Formula= net income-preferred income/ average outstanding common share

2019 2018 2017

3.2% 2.86% 1.62%

earning per share

3.5

2.5

2 earning per share

1.5

0.5

0
2019 2018 2017
 Return on Assets
Formula= net income / total Assets
2019 2018 2017
26757/868928=0.030 20063/714380=0.028 15573/657737=0.023

Retuen on Assets
0.035

0.03

0.025

0.02 Retuen on Assets

0.015

0.01

0.005

0
2019 2018 2017
 Return on equity
Formula= net income/ shareholder
2019 2018
equity2017
26757/41311=0.067 20063/34460=0.058 15573/26845=0.058

Return on Euity
0.068

0.066

0.064

0.062
Retuen on Euity
0.06

0.058

0.056

0.054

0.052
2019 2018 2017
 Debt Ratio
Formula= total liabilities/ total assets
2019 2018 2017
1961493/868928=2.25 1898850/714380=2.65 1708697/657737=2.59

debt ratio
2.7

2.6

2.5

2.4 debt ratio

2.3

2.2

2.1

2
219 2018 2017
 Debt/ Equity Ratio
Formula = total liabilities/ shareholder equity
2019 2018 2017
1961493/41311=47.48 1898850/34460=55.10 1708697/26845=63.65

debt/euity ratio
70

60

50

40 debt/euity ratio

30

20

10

0
2019 2018 2017
 Gross spread Ratio
Formula = Net markup income/ Gross income
2019 2018 2017
26757/73427=0.36 20063/91518=0.219 15573/268514=0.057

gross spread ratio

0.4

0.35

0.3

0.25
gross spread ratio
0.2

0.15

0.1

0.05

0
2019 2018 2017
 Time interest ratio
Formula= earnings before interest and tax/ interest expenses
201 2018 2017
14044/80867=0.173 12208/4608=0.060 468/34668=0.135

time interest ratio

0.2
0.18
0.16
0.14
0.12
time interest ratio
0.1
0.08
0.06
0.04
0.02
0
2019 2018 2017
 Dividend per share
Formula= dividends/ no of share
2019 2018 2017
7.50% 7.50% -

dividend per share

8

5
Series 1
4

0
2019 2018 2017
 Advance /deposits ratio
Formula = advances/ deposits
2019 2018 2017
383313/691017= 0.55 381877/595582=0.64 295752/556281=0.53

advances/deposit ratio
0.7

0.6

0.5

0.4 advances/deposit ratio

0.3

0.2

0.1

0
2019 2018 2017
 Spread ratio
Formula= interest earned/interest expenses
2019 2018 2017
80867/54110=1.49 46908/26845=1.747 34668/19095=1.81

spread ratio
2
1.8
1.6
1.4
1.2
spread ratio
1
0.8
0.6
0.4
0.2
0
2019 2018 2017
 Du Pont returns
on assets
Formula = net profit margin* assets turnover* equity
multiplier
2019 2018 2017
0.20*0.35*21.03=1.47 0.042*0.24*20.73=0.20 0.019*0.28*24.50=0.13

Working
Net profit margin = net profit/ revenue
8249/305121=0.20 7564/177427=0.042 3322/171199=0.019

Assets turnover = revenue/ total assets

305121/868928=0.35 177427/714380=0.24 171199/657737=0.28

Equity multiplier= total assets/ equity

868928/41311=21.03 714380/34460=20.73 657737/26845=24.50

 du pont return on assets
1.6

1.4

1.2

1
du pont return on assets
0.8

0.6

0.4

0.2

0
2019 2018 2017
 OPERATING CASH FLOW
FORMULA= cash flow from operations/ closing current liabilities
Borrowing used as Liabilities

2019 2018 2017

2432716/77045=31.57 1271986/41793=30.43 2960623/38949=76.01

operating cash flow

80

70

60

50

40

30 operating cash flow

20

10

0
2019 2018 2017
Conclusion
I completed my internship in Bank of Punjab with my
full passion and hard work. Through this internship I
got to know about the management system of bank of
Punjab that how they can run their banking system. I
also hot to know about conflict management system. In
myself I feel change in that manner, that no matter
happens always keep polite and humble and be patience.
All management system are functioning well in bank of
Punjab. Highly trained staff and motivation among staff
are key value of their success. Bank of Punjab earns
more success if they solve their conflicts a bit earlier.
 Recommendations

 Introduced Training program

Introduced development program for employees
Solve complain earlier
 Increase working member
Check customer invoices properly
THANK YOU