Bank of Khyber Internship Report For The Year Ended 2010

The Bank of Khyber report
Internship
201 1
1.
STUDY SCHEME
The study is divided in seven chapters according to the areas discussed in them. Their description is as follows; Chapter-I is introduction to the study giving relevant details with regard to the research study. Chapter-II Organizational Background. Chapter-III Introduction to the BOK. Chapter-IV Management and Organization of BOK Chapter-V General Banking and Departmentation Chapter-VI Financial Analysis. Chapter-VII SWOT Analysis Chapter-VIII Findings and Recommendations
1|Page
Chapter 1 INTRODUCTION
1.1 BACKGROUND OF STUDY
In present day world, economy has started dominating every sphere of life and for the socio-economic growth of any country, monitory institutions are critical. In this context, banking sector plays a an important role. Banking sector is the backbone of the industrial sector, trade and commerce of the country, hence providing stimulus to overall development of the economy. They gather the scattered amounts from a number of people pool these amounts and then lend or invest these amounts in profitable projects. Banks thus create credit, take part in capital formation process, and channelize the financial resources in to productive uses. A sound banking system is very essential to support the trade and industrial activities within a country. The role of banks in the development of a country has greatly increased with the advent of modern tools and techniques in banking operations. Moreover intense competition among banks, the privatization of the financial institution and financial liberalization in general are gradually and continuously making the banking sector efficient and effective. In this era of ever going change and knowledge explosion, manifested by modern technology, banks are also adopting themselves to cope this change. For Pakistan, being a developing country of third world banks are crucial to Pakistans
The Bank of Khyber
Internship report
economy, and specially in the case of NWFP, where a huge amount of remittances come from abroad by population residing there. This makes a significant contribution to the economy of Pakistan in general and NWFP in particular.
1.2
OBJECTIVES OF THE STUDY

Administration at Government Commerce College, University of Malakand.
1To fulfill the requirements for the degree of Bachelor of Business 2To acquire first hand knowledge of practical field and develop the discerning capabilities to apply the knowledge gained during the course of studies to real world situations. 3To perform financial and other analyses of BOK 4To make possible recommendations in light of the analysis. 5To get better long report writing skills. To achieve the stated objectives of the study, the area of work is classified as follow: 6To study the tools and techniques used for the analysis. 7Collection of financial data thoroughly and collect other relevant information. 8To ascertain problems through primary and secondary survey. 9To enumerate the prospects mostly through secondary data survey, that is, annual reports. 10Develop recommendations for solution of the discerning problems.
1.3
SCOPE OF STUDY
During this study I was able to observe operations and identify various
problems which the BOK management has to face. The BOK has been analyzed from marketing, financial and operations points of view. However IFE Matrix, Govt college of Mgt sciences ThanaPage 3
EFE Matrix, SWOT and Financial analyses have been carried out are the main focuses of the report.
1.4
LIMITATION OF THE STUDY
There are always some limitations which are to be faced during every study. In case of banks it is very difficult task to collect all types of relevant data and information because of confidential nature. Also due to the bank tight work schedule and non-availability of the required staff complete information could not be collected easily.
1.5
METHODOLOGY OF STUDY
The data collected for analysis and review includes both primary and secondary data. Every nerve was strained to collect the quality information. The methods used for collecting primary and secondary data are as follows:
1.5.1 Primary Data

Data collected for the first time is called primary data. The methods used to collect such data include: 1Personal observations 2Discussions 2Interviews 3Survey
1.5.2 Secondary Data

The data collected earlier by someone else and which has gone through mathematical and statistical techniques after its collection, is called secondary data. Methods used to collect secondary data include: 1BOKannual reports 2BOK manuals 3Internship reports on BOK available in library 4Journal and Newspapers 5Internet
The Bank of Khyber

6Stories 7Internet
Internship report
1.6 INTERPRETATION OF THE WORLD BANK

The word Bank has been derived from French word banque or bancus which means bench, office or institution for the keeping, lending and exchanging of money. Some other authorities have the opinion that Bank is derived from the German word back which refers to the meaning of joint stock fund. Bank is a financial institution that borrows money from one party and lends money to another party (Government, individual, business) and the difference between borrowing and lending make profit for the bank. Banks borrow and lend money on interest basis. Banks are classified according to their sphere of activities, the main the types of banks are as under: a.Commercial Banks b.Industrial Bank. c.Agricultural Banks. d.Saving Banks. e.Exchange Banks. f.Central Banks. g.Cooperative Banks.
1.7 BANKING SECTOR IN THE KPK

The KPK Province is a land of geographical diversity ranging from glacial mountain ranges in the north to arid and semi arid regions in the south. This geographical diversity holds a significant potential for development of agricultural, industry, forestry, hydro electricity and tourism. The Bank of Khyber is the first KPK. based bank and assists in the development of sound business in these areas of growth. There are about 22 Pakistani scheduled banks operating in the KPK having 1147 branches or about 15% of all the branches of scheduled Pakistani banks, in the country. In addition 3 foreign scheduled banks with a total of 3 branches are also operating in the Govt college of Mgt sciences ThanaPage 5
province. Historically banks in the KPK have been able to mobilize substantial amount of the total deposits of the country. However their share of investment in the province has not been proportional as the development process has gathered pace over the years, investment within the province has also increased creating a demand for banking services. A large expatriate community from KPK residing overseas especially in the Middle East are also offering opportunities to banks operating in province.
1.8
COMMERCIAL BANK
Commercial bank is engaged in performing the routine duties of banking
business. Such bank collects surplus money from the people (as borrowing) and extends the same money as a loan for development purposes. Commercial Bank plays a vital role in the economic development of a country by performing the variety of function as given below: 1.Accepting of deposits (Current, saving and fixed account) 2.Making loans and advances (overdraft, cash credit, discounting bill) 3.Agency services to customers (Collection of cheques, dividends, electricity, water and gas bills, purchase and sale of securities, and acts as a trustee. 4.General utility services (Forex Business, Issue traveler cheques, providing trade information).
1.9
ROLE OF COMMERCIAL BANKS IN PAKISTAN

With the passage of time, the activities of the commercial Banks have been
substantially increased and such banks are now multi-service organizations, and are providing safe and convenient places for money to the general public. In this way banks make the best use of the fund collected for the enhancement of economic growth and development. In country such like Pakistan, commercial banks have great contribution to the financial market, and as a whole development. Pakistanis a less developed country where there is lack of good system for financial institution and specially the primary institutions including commercial banks. But despite of all these drawbacks No one can deny the importance of commercial banks and their role in the economic development of Pakistan.Such banks contributing toward Pakistan by providing the following valuable
The Bank of Khyber

services to the nation.
Internship report
Investing fund for economic development projects: 1.Lending for rehabilitation of sick units. 2.Issuing letter of credits for import and export purposes. 3.Strengthening capital and money markets. 4.Increase GNP. 5.Job opportunities. 6.Expansion in trade and industry. 7.Issue of travelers cheques. 8..Interest free banking. 9.Economic growth and development 10. Export promotion 11. Innovation & Advancements 12. Financing Foreign Trade 13. Capital Formation 14. Agency Services 15.E-banking Facility
1.10 ROLE OF KHYBER BANK ON ECONOMIC GROWTH AND DEVELOMPENT

The Bank of Khyber established in 1991 through an Act No. XIV, passed by the was Awarded the status of a scheduled bank in September 1994. The Bank of Khyber Enjoys A unique position, and stands out amidst the other, banks operating within Pakistan, and Has the privilege of being bracketed amongst the only three government Banks in the .The Bank of Khyber has really played a vital role in the economic development of the N.W.F.P. This is evident from the fact that 65% of the total lending has been made in the Province, which is Billion. A major portion of this has been dispensed to the SME sector, Govt college of Mgt sciences ThanaPage 7
Further opening up avenues for employment. Lending, in fact, has been made to every Sector of the business community and the society at large. The bank has also shown Significant improvement in all financial indicators including. Deposits, advances, profitability and complete provisioning for the non-performing loans (NPLs) has also been made. Hence, the Bank of Khyber has now emerged as a viable Commercial bank having assets worth Rs.30 Billion and deposits of around Rs.22.8 Billion. The Bank of Khyber now truly possess the capacity and capability to explore and Procure maximum market share. Sensing the great demand for Islamic mode of banking In the province, the Bank of Shariah compliant banking solutions. It was in the year 2002 that the Bank of Khyber Started its Islamic Banking operations, as per the demands of the Local population. An Islamic Banking Division was established in January 2003, and a Shariah Supervisory Committee was formed for supervising and conversion of Conventional branches into full Fledged Islamic Banking Branches (IBBs)The conversion Of the conventional branches Into IBBs is of great significance in not only the history of The Bank of Khyber, but also in the evolution of Islamic banking throughout the country, Since there had been no set Precedence in so far as the conversion of the conventional Branches into Islamic ones is Dedicated Islamic Banking Branches (IBBs), whereas the Rest of the 18 branches is all conventional banking branches. Currently the Bank has a Total branch network of 34 branches throughout the country. 25 Of these branches are Located within the N-W.F.P., 01 in Muzaffarabad, and the A network of ATMs now, and Through the One-link network, clients can now withdraw Cash from any of the 2,412 ATMs installed across Pakistan. The Bank of Khyber has always been at the helm of all Developmental activities carried out for the provision of basic amenities to the down Trodden people of the N-W.F.P. in Particular, and for the alleviation of poverty from the Under developed areas of the Country by endeavoring to engage our clientele in activities Such that they feel financially empowered to ensure smooth functioning of their families As the most basic institution of the society. The fact that the Bank of Khyber has made
The Bank of Khyber
Internship report
Advancements to around twenty five thousand People under the 'Micro Finance Scheme', And with a total Micro Finance disbursement Of Rs.1.10 Billion and around Rs.1.00 Billion disbursed under various other schemes, Such as House Finance, Car Finance, Motorcycle/Scooter Finance, Cycle Finance, and 15 Take Home Salaries as Personal Loans, to more than 13,000 Government Employees to Help alleviate their strife and Improve their living standards, bears testimony to our long Standing commitment Towards sustainable social development, and continuing ambitions towards fulfilling Our obligations towards the society. As part of the banks corporate social responsibility, The BOK has also proposed for the Beautification and maintenance of a round-about in The provincial metropolis of Peshawar. In all such goodwill ventures the theme would Revolve around the traditional Values, customs, and traditions of the province. Besides, The bank also sponsors and Patronizes sporting activities ranging from squash, to cricket And golf. The Bank has developed a special product for small farmers of NWFP at the Lowest rate of profit i.e. 6.5% p.a. in collaboration with the Agriculture, Livestock & Cooperative Department N-W.F.P., funded by the Government of N-W.F.P. to the tune Of Rs. 100 Million. The scheme is branded as the "Chief Minister Zaria Scheme" and is Offered by Both the conventional and Islamic Banking Branches of the bank. The scheme Covers Production and developmental requirements of on-farm and off-farm activities of Agriculture sector with maximum limit of Rs 0.1 million per case for the period upto two Years. From an all-encompassing macro perspective, the Bank of Khyber is deeply Committed Towards financing Hydel Power Projects and views such projects as not only Beneficial for our syndicated corporate lending, but promising for the present and future Generations Of not only the N-W.F.P, but the entire country. The Bank would like to Finance any Hydel Power Project to be undertaken by the private sector in order to help Generate more electricity for the province. The Bank of Khyber prides itself in being Sensitive towards all its stakeholder, i.e. our Clients, different communities, the Government, our employees, shareholders, the top Management and all board members, Govt college of Mgt sciences ThanaPage 9
And is gratified and appreciative towards all who have been reposing trust in our efforts And endeavor
1.11
REVIEW
Keeping in view the importance of the topic i.e. Role of Financial Deposits in the BOK a review of the report has been carried out. The review covers changes in Assets, Liabilities and Share Holders Equity. Economic Review, Performance Review The detail is summarized in the preceding paragraphs.
i.Assets
The Assets during 1998 99 were increased to 10% while in 1999 2000 it enhanced to 11%. The increase in assets was due to professional expertise of the BOK staff.
ii.Liabilities
The liabilities during 1998 99 were increased to 10% whereas during 1999 2000 these increased to 13%. The main reason for increase in liabilities was operational losses the BOK suffered for the first time since its inception.
iii.Share Holders Equity

The Share Holders Equity during 1998 99 was increased to 6% while during 1999 2000 it increased to 33%. The increase was due to good performance and professional Expertise of the BOK staff.
24
1.12 ECONOMIC REVIEW

The recent historic floods in the Country had huge bearing for the economy mid-year Onwards. This catastrophe poses economic challenges for the Country as a hole, Especially. The agriculture sector, and would trickle down to all sectors whereas the Banking sector may face issues in terms of both asset creation and deterioration of asset Quality Country had huge bearing for the economy mid-year onwards. This catastrophe Poses economic Challenges for the Country as a whole, especially the agriculture sector, And would trickle down to all sectors whereas the banking sector may face issues in term
The Bank of Khyber
Internship report
Of both asset creation and deterioration of asset quality. Coupled with after shocks of the International economic setback as well as political instability, the economy of Pakistan Has witnessed financial crises during the year 2010. Lower revenue collection, weakening of balance of payments, unconvincing exports and Current account deficit amounted pressure on budget. However, the higher trade deficit Was compensated to a certain extent by rising remittances. The foreign reserves also Continued to cross record levels with foreign loans under rehabilitation and emergency Aids packages. The average CPI inflation for the year under review stands at 15.68 Percent as compared to 10.3 percent of the corresponding year. The energy crises badly Hampered the production. Activities on a large scale thus lowering the export targets to a Significant level. The huge support extended by the foreign countries against the fear of Economic collapse helped Pakistan to remain a controlled state whereas strict monitory Measures adopted by the State Bank of Pakistan helped contain the financial crisis to Restore shareholders confidence. Having major presence in Khyber Pakhtun khwa were The menace of Militancy hit hard, the banking activities have suffered however; the Bank Of Khyber through its dedicated efforts has managed to revitalize the core banking Activities and posted an operating profit of Rs.385 million. The markup based income Grew to Rs.4, 207 Million from Rs.3, 390 million in 2009indicating and increase of 24%.Resultantly, the Bank achieved profit before tax of Rs.713 million as against loss of Rs.799 million for last year. Profit after tax amounted to Rs.563 million translating into An EPS of Rs.1.13 against (Rs.1.27) for 2009.Total deposits presented a robust increase Of 41% reaching Rs.36.981billion from Rs.26.286 billion at December 2009. The Advances of the Bank also showed tremendous increase of 30% increasing toRs.21.272 Govt college of Mgt sciences ThanaPage 11
Billion from Rs.14.821billion at year end 2009. The Bank also able to increase the size of Investments from Rs.17.926 billion toRs.19.853 billion with an increase of11% from the Last year the total asset base of the Bank grew up to Rs.50.794 billion from Rs.38.811billion registering growth of 31%.During the year, the Bank retained its Strategy of concentrating on growth while placing its customers as the pivotal point of its Activities. Currently, the Bank is providing customized services through its expanded Network of 50 branches nationwide wherein nine new branches in the cities of Karachi, Faisalabad, Gujarat, Gujranwala, Mirpur (AJK), Upper Dir,
1.13 Performance Review

Havelian, chaman and jamrod Road (Khyber Agency) have been opened in 2010. The Bank's paid-up capital for the year ended December 31, 2010 stood atRs.5 Billion .Fresh Injection of funds to the tune of Rs.3billion has been made by the Government of Khyber Pakhtun khwa as advance share deposit money. To increase it's Paid-up capital, The Bank plans to issue Right shares to it's existing share holders whereas The Government being the major shareholder will subscribe it settlement of right shares Against the Funds Stated above .After the right issue, the Bank will be compliant with he Minimum Capital Requirements up to year end 2011. The right issue is expected to Be offered before June 30, 2011.
The Bank of Khyber
Internship report
1.14 HIERARCHY OF BOK
Govt college of Mgt sciences ThanaPage 13
Chapter 2 ORGANIZATIONAL BACKGROUND

2.1 EVOLUTION AND ENHANCEMENT OF BANKING
Banking is as primitive as human society because when importance of money as a medium of exchange, it was felt that there should be a regulating agency. Babylonians may be the first who developed in the pristine era of as early as 2005 B.C. Origin of banking is still a mysterious thing. Various assertions may be cited about the origin of word bank. Among the various opinions some authors say that this word is derived from the words bancus or banque which connotes a bench. Some say that it has been derived from German word back which means a joint stock firm. After Italy fell to Germans the word back was Italianized into bank Hence these variety of opinions does not permit a person to be certain about one opinion that it is authentic because none is backed by a valid record. It is not certain as to who invented money: but history records that Gyges, king Lydia, and casted electrum (a natural alloy of gold and silver) in gods of identical shape and of uniform weight with a triple emblem engraved on it as an official guarantee of value in 687 B.C. The temples of Ephesus and Delphi were the biggest Banks of their time. The Romans also tried to regulate the conduct of private banks in such a way that utmost confidence of the people was created in them. German public bank was formed in 1401 and by the 16 th century some more public banks were formed in Milan, Amsterdam, later the bank of Amsterdam was founded in 1609. Despite the classical origin banking in its modern form and structure started in Britain, when many of the Lombardy merchants came to England in the 14 th century and settled in parts of the city of London now called Lombard Street.
The Bank of Khyber

2.2
Internship report
DEFINITION AND CHARACTERIZATION OF BANK
It is pertinent in this context to have a definition of bank. Certain individuals have tried to define bank, banker or banking-all are used interchangeably and hence may be cited for the purpose. Dr. Herbert l.Hart defines banker or bank as: A person carrying on the business of receiving money, and collecting drafts for customers subject to the obligation of honoring cheques drawn upon him from time to time by the customers to the extent of the amounts available on their current accounts Sir John Paget, who is regarded as a great authority on banking law, defines banker in these terms: That no person or body, corporate or otherwise, can be a banker, who does not (1) Take deposit account (2) Take current account (3) Issue and pay cheques and (4) Collect cheques crossed and uncrossed for his customers In short bank can be defined as, A bank is an institution which deals in money and credit. It accepts deposits from individuals and firms at a lower interest rate and gives at higher interest to those who need them.
2.3
FUNCTIONS OF A COMMERCIAL BANK
A commercial bank performs many functions. They can be broadly classified in two categories; primary functions and secondary functions.
2.3.1 PRIMARY FUNCTIONS

The basic functions of a bank are accepting deposits and advancing loans.
i.Accepting Deposits
This is a very important function of commercial bank to accept money from those who have it but cant put it to a profitable use. To attract more deposits, a bank offers various facilities to customers to deposit their money with it. These facilities include current account, saving account, and fixed account. Current Govt college of Mgt sciences ThanaPage 15
account bears no interest, yet a customer can withdraw any number of cheques in a day. Saving deposit offers a moderate interest with limited withdrawal facility. Fixed deposit offers interest rate higher than the saving account; however, the accountholder cannot withdraw the money deposited during that fixed period.
ii.
Advancing Loans
The second important function of a bank is to advance the money deposited with it to those who need it for productive uses. The parties receiving these loans include businessmen, traders, exporters, individuals, and corporations. Loans are extended against proper securities like mortgage, pledge, hypothecation of goods and documents of title. To adjust to the needs of the various types of customers, a bank offers different types of credit facilities. These facilities include loans, cash credit, overdraft, and discounting of bills. Cash credit permit customers to withdraw funds within a given limit and interest is charged on the balance actually withdrawn. Overdraft is provided for short period of time and interest is charged on amount actually withdrawn. Discounting of bills refers to making the payment of bills before its maturity.
2.4 Advances on BOK

i.Conventional
Advances are starting net of specific and general provision. Specific and general provision against the advances determined on the bases of prudential regulation and other directives issues by the state of bank of Pakistan charged the profit and loss account Advances are written off when there are no realistic prospects of recovery
ii.Murabaha
Funds disbursed for purchase of goods are recorded as 'Advance for Murabaha'. On culmination of murabaha i.e. sale of good to customer murabaha financings are recorded at the invoice amount Goods. that have been purchased But remain unsold are recorded as inventories. Profit is recorded at the time of sale of Goods under murabaha as deferred income and is included and the amount of murabaha financings. Profit is taken to the profit and loss Account over the period of the
The Bank of Khyber

murabaha.
Internship report
iii.Ijarah financing
Ijarah financings executed on or before December 31, 2008 have been Accounted for under finance Method, thereafter all ijarah financing are Accounted for under IFAS-2
2.5.2
SECONDARY FUNCTIONS
The secondary functions are those which a commercial bank performs for their customers in addition to their primary functions. These functions include the following;
i.Collection of Bills
Bank collects and makes payments of cheques and notes for its customers as the agent of the customer.
ii.Collection of Dividend
The bank provides a very useful service in the collection of dividend or interest earned on shares, debentures, or TFCs held by its customers.
iii.Execution of Standing Instructions

A customer may order in writing to his bank to make payments of regularly recurring nature of expenditures to an individual or firm by debiting it to his account. Acting as Trustee or Executor: If a customer instructs its bank to act as the trustee in execution of its will or asks the bank to act as trustee in administration of business settlement which requires technical knowledge, the bank acts as trustee or executor.
iv.Foreign Exchange Business

A bank transacts foreign exchange business by discounting foreign bills of exchange and thus provides facilities for financing the foreign trade.
v. Advice on Financial Matters

Sometimes the banks give valuable advices on various financial mattes to their customers.
vi.Safe Custody of Valuable

A bank keeps valuables, ornaments, documents etc. for safe custody.
2.6BANKING IN PAKISTAN
At the time of independence the areas which constituted Pakistan, were mainly agrarian based, therefore banking was not as sophisticated and developed as is usually the case in industrial societies. However commercial banking facilities were provided fairly well here At the time of independence, there were 487 offices of scheduled banks in the territories now constituting Pakistan. However, by June 1948, the number of offices of scheduled banks reduced to 195 as many of the banks shifted their offices to India. There were 19 non-Indian foreign banks with the status of small branch offices which were engaged solely in export of crops from Pakistan, while there were only two Pakistani banks namely Habib Bank and Australasia Bank. So at the time of independence, Pakistan was in need of commercial banks and financial institutions. Being an incipient country, Pakistan was in a precarious situation to run its own banking system. The situation was exacerbated by the extreme paucity of resources. It was in this backdrop that it was decided that Reserve Bank of India should continue to function in Pakistan until30th September, 1948.The Imperial Bank of India which has been working as the reserve Bank of India, closed down most of the its offices
The Bank of Khyber
Internship report
in Pakistan. Therefore, it was agreed between the Governments of India and Pakistan to advance the date from, 30th September, 1947to 30th June, 1948 unto which date the Reserve Bank of India should act as the monetary authority in The Government of Pakistan issued first ever currency notes in October 1948 in denomination of Rs.5,10 and100.By August 1949,the State Bank of Pakistan withdrew the Reserve Bank of Indias notes of the value of Rs.125.02 crores with the help of Pakistani notes. Ever since 1948 Pakistan progressed significantly in banking sector. A huge population is given services by network of thirty seven banks Pakistani as well as foreign. On the whole 7000 branches of these banks are attracting deposits and providing them for further investment. Therefore stimulating the process of capital formation in the country.
i.
Askari Commercial Bank Ltd.
No matter how for away you are, our technology Covers the distance .Through a Satellite based, on-line real-time banking system offering telephone banking, ATMs, electronic funds transfer and other modern Facilities. ii. Bank Alfalah We offer services through a network of 142 branches and 59 state of the art ATM Machines. iii. Habib Bank Limited HBL has grown its branch network and become the largest private sector bank With over 1,450 branches across the country and a customer base exceeding five Million relationships. With a presence in 25 countries, subsidiaries in Hong Kong And the UK, affiliates In Nepal, Nigeria, Kenya and Kyrgyzstan and rep offices in Iran and China, HBL Is also the largest domestic multinational. The Bank is Expanding its presence in Principal international markets including the UK, UAE,
South and Central Asia, Africa and the Far East.
iv. National Bank of Pakistan Maintains its position as Pakistan's premier bank determined to set higher Standards of achievements. v. RSB Pakistan Former ABN AMRO's. About 3,000 employees with a network of over 75 Branches in 24 cities. RBS Pakistan is now owned and operated by Faysal Bank Limited vi. Soneri Bank Ltd The bank currently operates 158 branches, spread all over Pakistan including The Northern Areas of the country. The banks expansion policy is based on The Principle of maintaining a balance between the urban and rural areas. vii. The Bank of Khyber
cool
010009000003f31100000000d20e00000000d20e000026060f009a1 d574d46430100000000000100ee640000000001000000781d000000 000000781d0000010000006c0000000000000000000000230000001 80000000000000000000000e7030000b502000020454d4600000100 781d00000f000000010000000000000000000000000000008004000 06003000040010000f000000000000000000000000000000000e204 0080a90300460000002c00000020000000454d462b014001001c000 000100000000210c0db01000000600000006000000046000000a815 00009c150000454d462b224004000c000000000000001e4009000c0 0000000000000244001000c00000000000000304002001000000004 0000000000803f214007000c0000000000000008400005f4140000e 81400000210c0db0100000000000000000000000000000000000000 0100000047494638396124001900e64b00fffffff0f0f0008038007432 c3c4c4003818014720b4b4b4009040004018e8e8e8d4d4d4006228a 5a5a5003010e0e0e000502000582800281002884000683094959570 9680013018f8f8f882858486a1934563533585572496560058201785 4920543852927053a47735946024453263656453615861977873b79 294c6a87f958872777493a3990d914852866964847145a770b5d5c3
The Bank of Khyber
Internship report
d2e1d636745035a165a7b7b0b7c1b8385443448260467459c5d6cad ee8e061746817934f66b68aa4cfb512683725654055746480bc98309 15844936559af7fa4b0a687c2a1456552000000ffffff000000000000 0000000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000 000000000000000000000000021ff0b4e45545343415045322e3003 0100000021fe853c434f50593e3344466c6167732e636f6d20416e69 6d6174656420466c61670d0a286329313939372d323030312043726 16d65732053747564696f730d0a466c6167206c6f6f6b20616e64206 665656c206172652074726164656d61726b73206f66203364666c61 67732e636f6d2e2020416c6c2072696768747320726573657276656 42e0021f904090a004b002c00000000240019000007ff804b8283840 f0f848888361a2e168789883a153803131d8e904b0b2620060c02081 f8f833a0436070d1519193902a008131f988236200e1705091195022 e880ac00b042c192a3303afae02b11c410912d017bac808022a840a0 10a0f360dab3914a0e2d5d50c0617b70e0510c813021683d9da0f04d e19c7ae08d5a0ee140605d10a180857ed44bc0000023cd0912ac3864 ffac8891b6020c10509b9207c721562d0820020152c38a0e2de467df 98c201800c1e22d81100514f18850e1485539185073d5e1870f57100 a90b840426004654468865c6043d5436afa90c440192181091317a4 edaad64181201d09016c2350a1428e5df9463c48218ec18db745ff0d b0733561c1579020e9793b4b108111054350fabb21216b82b9cbec2e d18137582a1311c28142a100093f8a0071ad2328e0882002356d366 0c143633eca3a26e81b50b5803a819205b0a01556db48d2117482faf b8008558b9a3d89bbb60474e3910d4aeb74d702588c16e52aa2abb8 f1dde79a6285258f80565f0c60297a08309760680203dd3b169737af de0beec8f8c9c806d8450e4eb8d0c71f71bdf6426f1044360e113220a 40001198050804072b5d3c167d92464d3011604781239460c810211 115424902e927de0950d782d754005015200d52b289127500102826 2d701f2242412011a70a79b6ae4b4d8612e7285e38e5d36b0671b8e 3ac6974f3f44025000414506c855dd014b14b9cd02a5d493636e50e9 33c2091a5860c10b3974a2cb4613d4b004305e2542cf11625aa0830e 9954c9820a2a3462815781000021f904090a004b002c00000000240 019000007ff804b828384823a0f0f858a82362f1c1689820a0a8b3a3 91103021d213a8b4b3a2620051e03131f91040a0b3a36360d0d2a3c 0698020802021f2c914b362017120505b4021a820401c8c80b07152 606a4b70813b71d441ca2bf0e17050614b527c6c80001aa36154209 11de08b6b702d31e090e12db05100cb521e1c9010f0415b2eed51a68 cb168304d9b619c02780082300e3c6f96b50c280c05aed5a4ca360a0 8036090e665163240e9902020d5e185858ca969121ec040c3070e18
2b602e94a4d58c02bc038930b1a64480081160218327abc434001c8 369bdc2064dad9d3a74f550732ac942aa0c7831fd1a6bdd8308f1ed1 4c020ef48ca8ec808a95eaff04180980c41d82132a9cfd9260711d8b2 507f84934b7d5db9000280ada7241a280cd6d178b052ed98f000b8b 10280cf81160c8ad09b6802430302fd8c2771600971ca7aac14a9648 02e82028b3e3638bb4f4d9b0faf3c1b20816190c40418e4634040322 24286076d6000445002be0dd16b87322e462b460871cb8e30ba3698 d90be3ac06f0845bde9209742a92d0a1b8205cba9897c49050f6c009 92590860cfc322081c2101644205f54de74601f5bfe0001c12cdec8b5 c3240a001043102b7974c133def4a0c0010f50571910c04520dc2d3d a0f0031246c8e41d4ee9e033c187d3f143ce02407810416699148491 2d3b9ab692373b81381d44ace1c8c0598e27fac89d000c4080535432 2ef3408dc9a8f2c18e11c4f5e393143c684078272eb3c024fd2c40000 107e01044043aa265cb0444846081052abc900308a31575cb990b04 4a8922fe1c71a7054374e2c9022cb0a0820be004020021f904090a00 4b002c00000000240019000007ff804b828384843a3a0f858a82362a 33213a4b36040b0a8b36391014020844918b4b2624061e9b1d92010 10f0b0493360d1b09061003021313021f8883192012170e179ab60a 04a9c7000a0b0d40b2100c9c02d2b9233320051712c10506d0080b3 6a90001e3010b07200609c39cb8b6020311050e12bfdcd01304c6e2c 7e041b206227042302d1a8402f3b4394810a1d6817de5c63d3810c4 c0bd5a3d7c4cc3c5001bb00b170a3444c0c2860271e58a553410704 0071d46a6116460209bb60bb26a6908478e9f021d159d0d18a283a0 b41e3d28580c1672dd261526f991533603024b084176a4308a00c10f 17076d4a5807cd42d488a916cc60c910c70214d1ff04f8505044dec7 0b2ca19d38f000e5b11d1c22003cf1d6a82d247513d00376716f5f64 1267445007e1848e215da521e82180263607c1ba0908c1d7ef542293 599e2010231a2e824a117e6e49fae4b19e0a88d09495832f0dae0407 580cd9b421e94a3d01941bc1c0aa0120361ec4e8013c5e81048c6751 08d10079f2000a4650701e81c58200293877a5817a6948ed218e784 71640fc64591c083c502003851124310cb01b36d73db3d702fb8da36 07d0242e0200322ec00de7e3a70269c6cdc747342770ad846ce3823c 47355431dfc20430c28b480c004035825db2c0cbc7000821e2ed7e08 3b5c4d515022daa8390531674879c723dd1300005933db309534199 6546938f7959306325b629d88100485a558a669a39695502ce44a04 1033a20d88f0e045840c40c4144e026340375a281061658f0420ed70 4c4000bca2ce0e702a02c414003755aa0c227a0bc62810e81000021f 904090a004b002c00000000240019000007ff804b828384850f3a350 f858b82362a3338070736040b0a8c3639101402081f898c4b262017 06141f360f0a0001879404352a390505060c9d08021f8a8319200517 0e05091113a901c8acac0a211106c3b6029dd202442133200e12120 e17b50c1f079601acc8010a460c0609b5110308b9d2130203cf1712f 70e06eea90ac9ffe9203cdb376042076a9d064028a0ed82b7041006f
The Bank of Khyber
Internship report
423670e99110aeb6a41e03004c13c69080644a0b54d588108401a8c 3357ce88c2750620d4e8100fa4800809f249803640a5027f00ca0170 89b3560e163605d0c8a5ae1bbe529b543ea848d1a53a76195e4c13d 021060a01181906c367208854a00005a8db9701c780691dff74f8a06 7af5bb004331ae850c5d2a25a08096eacc8f12e1e8ca50a13d8ed96c 0ac8e055383528401d69960216fb72654970f9ae395140150166940b 0054e35e1a97dc6ed610e9590ff211bed0c44890a1f3a4d88978bc2c2 60de0abc685069ea3f0088d545585141c5476af028140d366c78f155 1597ae4e60224383143d7221e8012324605a0f594c7afc3319f2de02 97b3a8e40386911f2d7239a325cc408303958ca34c003455664059f3 f1f58008aa5d054c2dff11c0de71059296800133b060890ee54de31b3 bb4244000800b40e60f45e1d1c3804010b8d34381b8d083d333b52c 01e0759201905f482b1e18c12dd3c003cf000e1263230112f2958c41 6a6a39d322901e81d4db81171a706480c605a00311238c104208410 4b10f94024c3082061a58a0c209390411982025c65962284bd8d080 0a16e4a9039d752e11080021f904090a004b002c000000002400190 00007ff804b82838485820f3a2c350f86860b2c040d073636040b8d4 b4739060c02021d168c8d262005410d960f0100010f04078b3a0d39 05059c03089e44a282163712121705260d360baa01c9c9460203110 9c209110313b9021f211639a5c0c10e42923aaaacca4608030c06b50 61e0302d69e021409050e17c2052ba896cae430b9e96a49e3f02e1e8 20914d40173604f45b1050b9429a331419e017a0584743ae8a9e280 8b05824970c042922505ab26e6a200011a290af18878ca05a15ec86 0252b1d93088046ae01100c18e0c1e91d022323aa097876c19e3d1b c50888eba7c067b367374c246040ad878d1ff1d235bd6760c9810304 08206305a0038273e9ff4adc3030cd9391186e2704ec56f66cdab5c9 7a70641041ae0108ee107410a0d41934602096bc421b519902c12b4 1c84d000126bc6a40e935bd21d9066594e45abc6d06828709a1300b 1a1510b44053214b2ae944a9ecedca2025789080b0513640d112705 7a28c2c99ef09ce78ac3011a113e3992b6bd6e321d9efd4640a7c9f8b b041ba10208905c078073d685316b94def5e15deb700c2264a64581 1a2038d212818e5582df0554280310ff0b6c3731691205d0504c8104 00c15ad165001f0a5f58a0e0ba02683513f051581092ad8f0400a3d6 0775f500630a2838627a124837857094557108b55341b05cf9425d9 8bcc2533a37de8d8d8597ae239239442202f1e980a4a3ad0b8e245d5 193453450c04258886688983520c8a9d7042082ebcb00d5d5ccd368 20a1658a0c20bb809a280020b5802114498e4d6409b6d8a93672000 21f904090a004b002c00000000240019000007ff804b82838485840b 3a2c2c0f868d070d0d043a36360b8d4b4739061103081f168c8d0d4b 040d07950a0000010b27350fb004391705059c0208021ca18219201 22a4b0b90070b0f01010a0108cc02031009b4051e03b802021f212c1 b201712c0c2c404c7ab0a13b808cfb50e051014d6d7e70cd10e1207c 236903a0bc8013bccb904443020cd1dae73d704303050e0c2054b0b
081c38304e590019e79a2d6c68c000834e09730d60e84dd0824791f8 2193816042330a090c90b8b04900910e21d539b82048818d47c5940 1d091abd94813b5360de8a0c3c8b57411a2f15ce213a83164448b3a 03518256024e29148c782a90e10d93121b542217031db3013cff3614 7cf703464285b5ce524d4bf158801800036eab95c0208d9002601630 d1336d837dca7e5863d6a101d2023119dc45a74e484f1d4009f003f0 233002220d7844cb2cc065cea8c1a8468424fa8182d2cd5a1e504102 33044e01c94665d173c1cf89574bbb15d0a08209864a0f925d489caa 0ebe5753984650a4c28a0d1d23bc6b71d8350508a364f3ad881bdd3 50b2b5698b811e48388141f9e423d527cd244c8da99260010f195904 106c51811d05b1110605244c74186c4642f457043092b64a0421108 69c58083c23c10d123a22980c4768945d511049ac1f3920e0f8e4891 31270a38c0423179849851308628a3243b0c515460030cb4e22d2db 93540318f0b8c980f01e308c9cc08279c6081052f04018201bf5593cb 0444a870252f3d3d201a253aa47909290d8879e52b8d04020021f90 4090a004b002c00000000240019000007ff804b82838485860b0d2c 2c0f868d070d0d043a04478c8d3a1b061003021316968d9090070b0 a0129081f163a9636260e1709061402080244a04b0b833607150d07 ac0048b61313021d0c0605b006060cb50202aa2c993683048f2c0d0 b0f01c4b608b603100517050510d09dd2b61e0684bd2cbf04de43e1b 5080311cc1717cfeca44953466892281ba5ee898b2620823307e8227 0b2158d20360207170440b1509cbe081b6015480084c34281148214 d4d1e01729051ca32d7401c25c44023f044ed0a772d082050714917 ae0235c381a0d96a12bc0e3408a63ed06f414f4f311a47a45f121f8a1 c1400288e9548ca0c80e07a19f364461ed88a085020d11ff129c4b17 8413545b667d0255bbc088561a018638b4f96cc0495b39083d58805 1513dbf1e05d00060834182a506240acc1742f1836ca3fa4646d043c 18e20ced0699a28ed58e7410f3e0705d657a638196ff9a14ba0992c8 2bc8262ef05a643c468043e14d8e0a19b370518507716f16c1018012 3f98cc620c0a2c40d1224666828b219c174410ad2333e88dda8c7230 d56ac30b142c58c7ced460c4abf18e3a3ebd97964cb0c4278b741040 cb0560b113ef1a78355048450cb4ed9094001049739a3d95d0c52a5 de838f1cd09e800bedb38c330946b3530f0d2af0595ac060770c8902 ec03815799d9d54e0b3e3d304936218e280e112758a082052fbc0082 1f331ed012cd081634121c0140b150830e3a48b9840d2c1ce9820a35 e4b244200021f904090a004b002c00000000240019000007ff804b82 83848586820b0d1a162c0f87850d150d3a2244168e873a200510140 20844988507a42c152c073a340808131f97983620171205060c0213 0221a283040b04919204ab13089f021d1c0c060e170eb60c03c702af 0d84040fc115c334c6d4c60214060505ce051103c89f1a843a0f3a07 2aa73623c7adf70203e4d0e51e03ba0408644168818205071a64a85 0ef533e56032024b870c11604750111101c641021b70607ece5fb34a 148848912c819f0444dc046410f0e26e4768088435dac501861e6c00
The Bank of Khyber
Internship report
1890d3c7009644728a636610d6cb24206e3810066052e9830b10157 cb76831404385a4145529cf764c41067602209aad2020ac02a48810 26d07ff3ee270788c468014082840886ae04282742d2d10d20a2fae2 40e02efc108f003c18008e528fe55375470d6ad084d3598cbea98110 5321c334860ce224b81462e073818ccebdcc40846040840e329b9a80 90c5016184235eb482c70a8eb2c6047801813c6952b90dbd3045d23 386addaa43580e81e1100c0900200510c8e50c54dd4d84e3ecb70466 0aa7fb49c6ea1a424890b861e23bc0631dcccf7e8030120e4f3721d08 27b3ab0b0020f261870cb6e132820880eb36146000b0db800e04308 d070820b1b90708182d22033c1020f4678900d0d542854672c9295c 08b064400a0403a3ca8955b47b1f08250d911a757590aca48920035 9478de02f15448013b65f838a44f0465e51681500309920d3c04a497 e209213a39c2092a5860c10b208020e585021cf1084cc1b060c1103a d4f8880d2c84e90223a20402003b000840010824000000180000000 210c0db01000000030000000000000000000000000000001b400000 40000000340000000100000002000000000000bf000000bf0000104 20000c84103000000000080b3000080b3ffff0f42000080b3000080b 3ffffc7412100000008000000620000000c000000010000001500000 00c00000004000000150000000c0000000400000046000000140000 0008000000544e50500601000051000000480100000000000000000 0002300000018000000000000000000000000000000000000002400 000019000000500000003000000080000000c800000000000000860 0ee0024000000190000002800000024000000190000000100010000 000000000000000000000000000000000000000000000000000000f fffff00e03fc01fe0000000ffffffffe0000000ffffffffe0000000ffffffffe00 00000ffffffffe0000000ffffffffe0000000ffffffffc0f35f05ffffffffc0000 000ffffffffc0000000ffffffffc0000000ffffffffc0000000ffffffffc080e44 3ffffffffc007d311ffffffffc01ef32effffffffc0000000ffffffffc0000000ff ffffff80000000ffffffff80005840ffffffff80005840ffffffff800000007fff ffff800000007fffffff800000007fffc7ff0000e44301fe01ff0000e4430 030003e0000ff0151000000fc0400000000000000000000230000001 8000000000000000000000000000000000000002400000019000000 5000000028010000780100008403000000000000c60088002400000 0190000002800000024000000190000000100080000000000000000 000000000000000000400000000000000000000000ffffff00e0e0e00 0b8c1b70093a186006986520080967000cad6c50095959400608244 00327400004088020056962400d4d4d400586153003854200020470 10028620000388000004090000049851700c4c4c300b4b4b400a5a5 a500848582005974460010300000183001001838000018400000285 80000e8e8e80099a3930088957f0050743600578535004065250010 280000f0f0f00030680000205000007897610053634500709252007f af590065934400b5cfa4008ab666003245240058913000a1c28700c3 d5b50060943500a8c694004354380098bc800092b77300a6b0a4006
874610048910d004f93170071846400d6e1d200b0b7a7001f1f1f010 1010101010102153906060607070101010101010101010320212105 06061f01031f1f020d07151517041e1e110a12131313133429040606 3d190f101d1e1112120b3f01031f262626261f0d15041e1e110a1212 121213131313122728101d101028111212121601161f262601261f0 d15041e1e110a120b13131213131312111e101c1d102827120b120d 010326262626261f0d1608281e270a12131312131313131211101d1 c101c1e271212130d01151f26012626020d1606281e111212131312 132c3738311e101d1c101d1e271212141f011526012601260207171 8281e2712131213313e26011f15180f1c1c1010280a120b0c0101151 f2626261f0215173d1e1e0a1212130b3e1f261f3705190e0f1b1c101e 0a121234010115260126011f0d15173a1e1e0a121313331f1f353c12 11101d301b1d101e0a12132b010115262626261f0d16173a28110a0 b123b1f1f333b131211101d1b1a101d111212120601010301260126 1f0d16203a1e110a12132c1f02311313121e1d1b1b1c1c1011121312 2101011526012626020d17203a2811121213381f070b13130a1e1d1 c1a1c1c1027121212200101072626261f1f0d17080e1e27121213381 f3212130b0a101c251b1c1c28271213123901010726262626021517 18191e271213132c1f37131312271036251b1b1d280a12120b0d010 1070126011f02150808191e0a12121334023512131211363636301c 10280a12120b0d01010d2626261f0d0308182a110a1213131332331 313121e1d0e0e1b1b1d1e0a13120c1f01010d260126020d16081819 110a121312120c2e2f1212281c301b301c101e121212310101010d2 626261f0d1621182211121213131212132c130a281d1b1a1b1c1011 1213122d0101011f26012602071708182a111213131312131213120 a101d1b251c1d28111212122b0101011f26261f0215171818220a12 1213131212130b1227101c25251b1c102712131229010101011f261 f0203171818192712131213121312131211101b1a1b1a1c280a120b 1206010101011f1f1f0d15201821220a1213131212120b1423241d25 25251b1d1e0a1213122101010101071503161708181819121213130 b140602010101030f1a1b1c1d1e0a0b120501010101010101010101 010708090a0b0c060201010101010101010d0e0f101112131402010 1010101010101010101010101020201010101010101010101010101 0103040506020101010101460000001400000008000000544e50500 70100004c0000006400000000000000000000002300000018000000 000000000000000024000000190000002900aa00000000000000000 00000803f00000000000000000000803f0000000000000000000000 000000000000000000000000000000000000000000220000000c000 000ffffffff460000001c00000010000000454d462b024000000c0000 00000000000e0000001400000000000000100000001400000004000 00003010800050000000b0200000000050000000c02190024000300 00001e000400000007010400040000000701040089000000410b860 0ee0019002400000000001900240000000000280000002400000019
The Bank of Khyber
Internship report
0000000100010000000000000000000000000000000000000000000 000000000000000ffffff00e03fc01fe0000000ffffffffe0000000ffffffff e0000000ffffffffe0000000ffffffffe0000000ffffffffe0000000ffffffffc0 f35f05ffffffffc0000000ffffffffc0000000ffffffffc0000000ffffffffc000 0000ffffffffc080e443ffffffffc007d311ffffffffc01ef32effffffffc00000 00ffffffffc0000000ffffffff80000000ffffffff80005840ffffffff8000584 0ffffffff800000007fffffff800000007fffffff800000007fffc7ff0000e44 301fe01ff0000e4430030003e0000ff0163020000410bc60088001900 2400000000001900240000000000280000002400000019000000010 0080000000000000000000000000000000000400000000000000000 000000ffffff00e0e0e000b8c1b70093a186006986520080967000cad 6c5009595940060824400327400004088020056962400d4d4d40058 615300385420002047010028620000388000004090000049851700c 4c4c300b4b4b400a5a5a50084858200597446001030000018300100 183800001840000028580000e8e8e80099a3930088957f005074360 0578535004065250010280000f0f0f00030680000205000007897610 053634500709252007faf590065934400b5cfa4008ab666003245240 058913000a1c28700c3d5b50060943500a8c694004354380098bc80 0092b77300a6b0a4006874610048910d004f93170071846400d6e1d 200b0b7a7001f1f1f010101010101010215390606060707010101010 101010101032021210506061f01031f1f020d07151517041e1e110a1 21313131334290406063d190f101d1e1112120b3f01031f262626261 f0d15041e1e110a1212121213131313122728101d10102811121212 1601161f262601261f0d15041e1e110a120b13131213131312111e10 1c1d102827120b120d010326262626261f0d1608281e270a1213131 2131313131211101d1c101c1e271212130d01151f26012626020d16 06281e111212131312132c3738311e101d1c101d1e271212141f011 5260126012602071718281e2712131213313e26011f15180f1c1c101 0280a120b0c0101151f2626261f0215173d1e1e0a1212130b3e1f261 f3705190e0f1b1c101e0a121234010115260126011f0d15173a1e1e0 a121313331f1f353c1211101d301b1d101e0a12132b010115262626 261f0d16173a28110a0b123b1f1f333b131211101d1b1a101d111212 1206010103012601261f0d16203a1e110a12132c1f02311313121e1d 1b1b1c1c10111213122101011526012626020d17203a28111212133 81f070b13130a1e1d1c1a1c1c1027121212200101072626261f1f0d1 7080e1e27121213381f3212130b0a101c251b1c1c28271213123901 01072626262602151718191e271213132c1f37131312271036251b1 b1d280a12120b0d0101070126011f02150808191e0a121213340235 12131211363636301c10280a12120b0d01010d2626261f0d0308182 a110a1213131332331313121e1d0e0e1b1b1d1e0a13120c1f01010d 260126020d16081819110a121312120c2e2f1212281c301b301c101 e121212310101010d2626261f0d1621182211121213131212132c13 0a281d1b1a1b1c10111213122d0101011f26012602071708182a111
213131312131213120a101d1b251c1d28111212122b0101011f2626 1f0215171818220a121213131212130b1227101c25251b1c1027121 31229010101011f261f020317181819271213121312131213121110 1b1a1b1a1c280a120b1206010101011f1f1f0d15201821220a121313 1212120b1423241d2525251b1d1e0a1213122101010101071503161 708181819121213130b140602010101030f1a1b1c1d1e0a0b120501 010101010101010101010708090a0b0c060201010101010101010d0 e0f1011121314020101010101010101010101010101020201010101 01010101010101010101030405060201010101010c0000004009290 0aa000000000000001900240000000000040000002701ffff0300000 00000
The Bank of Khyber was establied in 1991 under the act of NWFP Assembly. This Is the first bank that is doing e-Banking! In Pakistan. Now You can transfer/open Accounts through website. viii. Allied Bank Limited Allied Bank is the first Muslim bank, to have been established on the territory Became Pakistan. ix.
Atlas Bank Limited
Atlas Bank Limited (formerly Dawood Bank Limited) web site is in the Updating Process x.
Bank Al Habib Limited
Presently, the Bank has a network of ninety branches in all the major cities of Pakistan fully automated and computerized and providing wide range of Banking services xi. Bank of Punjab The Bank of Punjab is working as a scheduled commercial bank with its Network Of 266 branches at all major business centres in the country.
xii. Faysal Bank
The Bank of Khyber
Internship report
A full service banking institution offering consumer, corporate and Investment banking facilities to its customers. The Banks widespread and Growing Network Of branches in the four provinces of the country and Azad Kashmir, Together with Manner
xiii.First International Investment Bank IGI Investment Bank Limited was incorporated in 1990 as a joint venture of the Packages Group, American Express Bank and the International Finance Corporation (IFC). xiv.First Women Bank Limited First Women Bank Ltd. was incorporated as a Scheduled Commercial Bank in Public Sector as Public Company Ltd by shares in 1989. xv.
Habib Metropolitan Bank Pakistan
One of the leading private commercial bank in Pakistan. It was incorporated in August 1992, commenced banking operations in October 1992, is listed on all Three stock exchanges and operates in all major cities in Pakistan, with a Primary Focus on retail banking and trade finance.
xvi.Industrial Development Bank of Pakistan One of Pakistanis oldest development financing institution created with the Primary objective of extending term finance for investment in the Manufacturing Sector of the economy. xvii.Khushhali Bank In August 2000, Khushhali Bank was established as part of the Govt college of Mgt sciences ThanaPage 29
Government of Islamic Republic of Pakistan's Poverty Reduction Strategy and It's Microfinance Sector Development Program (MSDP) that was developed With the assistance of Asian Development Bank. It is headquartered in Islamabad and operates under the central bank's supervision (State Bank of Pakistan) with commercial banks its shareholders. Its mandate is to retail Microfinance services and acts as a Catalyst in stabilizing the country's newly Formed microfinance sector.
xviii. MCB Bank Limited Formerly Muslim Commercial Bank Limited has a solid foundation of Over 50 years in Pakistan, with a network of over 900 branches. xix. Meezan Bank Meezan Bank is Pakistan's first scheduled Islamic commercial bank, and Operates strictly under the principles of Islamic Shariah
xx.
My bank Limited
One of the fast growing Private Banks in Pakistan (former Bolan Bank)
xxi.NIB
Bank
Our Mission is to provide a banking experience so unique, that it compels each of our customers to want a long term, multi-product relationship with NIB Bank. xxii.PICIC
Commercial
Bank
The branch network has increased to 105 including 5 collection booths across the country. It is now the 6th largest bank in Pakistan after 5 nationalized and privatized banks. xxiii.SME
Bank
The Bank of Khyber
Internship report
As defined by State Bank of Pakistan - SME (Small and Medium Enterprise) means an entity, ideally not a public limited company, which does not employee more than 250 persons and 50 persons. xxiv.United
Bank
Limited
Pakistan
We offer our services through a wide network of over 1000 domestic branches all over Pakistan and 15 overseas branches as part of global network
2.7 HISTORY OF ISLAMIC BANKING IN PAKISTAN
S
world
Teps for Islamization of banking and financial system of Pakistan

were started in 1977-78. Pakistan was among the three countries in the been trying to implement interest free banking at
that had
comprehensive/national level. But as it was a mammoth task, the switchover plan was implemented in phases. The Islamization measures included the elimination of interest from the operations of specialized financial institutions including HBFC, ICP and NIT in July 1979 and that of the commercial banks during January 1981 to June 1985. The legal framework of Pakistan's financial and corporate system was amended on June 26, 1980 to permit issuance of a new
interest-free instrument of corporate financing named Participation Term

Certificate (PTC). An Ordinance was promulgated to allow the establishment of Mudaraba companies and floatation of Mudaraba certificates for raising risk based capital. Amendments were also made in the Banking Companies Ordinance, 1962 (The BCO, 1962) and related laws to include provision of Bank finance through PLS, mark-up in prices, leasing and hire purchase. Separate Interest-free counters started operating in all the nationalized commercial banks, and one foreign bank (Bank of Oman) on January 1, 1981 to mobilize deposits on profit and loss sharing basis. Regarding investment of these funds, bankers were instructed to provide financial accommodation for Government commodity operations on the basis of sale on deferred payment with Govt college of Mgt sciences ThanaPage 31
a mark-up on purchase price. Export bills were to be accommodated on exchange rate differential basis. In March, 1981 financing of import and inland bills and that of the then Rice Export Corporation of Pakistan, Cotton Export Corporation and the Trading Corporation of Pakistan were shifted to mark-up basis. Simultaneously, necessary amendments were made in the related laws permitting the State Bank to provide finance against Participation Term Certificates and also extend advances against promissory notes supported by PTCs and Mudaraba Certificates. From July 1, 1982 banks were allowed to provide finance for meeting the working capital needs of trade and industry on a selective basis under the technique of Musharaka. As from April 1, 1985 all finances to all entities including individuals began to be made in one of the specified interest-free modes. From July 1, 1985, all commercial banking in Pak Rupees was made interest-free. From that date, no bank in Pakistan was allowed to accept any interest-bearing deposits and all existing deposits in a bank were treated to be on the basis of profit and loss sharing. Deposits in current accounts continued to be accepted but no interest or share in profit or loss was allowed to these accounts. However, foreign currency deposits in Pakistan and on-lending of foreign loans continued as before. The State Bank of Pakistan had specified 12 modes of non-interest financing classified in three broad categories. However, in any particular case, the mode of financing to be adopted was left to the mutual option of the banks and their clients. The procedure adopted by banks in Pakistan since July 1 1985, based largely on mark-up technique with or without buy-back arrangement, was, however, declared un-Islamic by the Federal Shariat Court (FSC) in November 1991. However, appeals were made in the Shariat Appellate Bench (SAB) of the Supreme Court of Pakistan. The SAB delivered its judgment on December 23, 1999 rejecting the appeals and directing that laws involving interest would cease to have effect finally by June 30, 2001. In the judgment, the Court concluded that the present financial system had to be subjected to radical changes to bring it into conformity with the Shariah. It also directed the Government to set up, within specified time frame, a Commission for Transformation of the financial system
The Bank of Khyber
Internship report
and two Task Forces to plan and implement the process of the transformation. The Commission for Transformation of Financial System (CTFS) was constituted in January 2000 in the State Bank of Pakistan under the Chairmanship of Mr. I.A. Hanfi, a former Governor State Bank of Pakistan. A Task Force was set up in the Ministry of Finance to suggest the ways to eliminate interest from Government financial transactions. Another Task Force was set up in the Ministry of Law to suggest amendments in legal framework to implement the Courts Judgment. The CTFS constituted a Committee for Development of Financial Instruments and Standardized Documents in the State Bank to prepare model agreements and financial instruments for new system. The CTFS in its Report identified a number of prior actions, which were needed to be taken to prepare the ground for transformation of the financial system. It also identified major Shariah compliant modes of financing, their essentials, draft seminal law captioned Islamization of Financial Transactions Ordinance, 2001, model agreements for major modes of financing, and guidelines for conversion of products and services of banks and financial institutions. The Commission also dealt with major products of banks and financial institutions, both for assets and liabilities side, like letters of credit or guarantee, bills of exchange, term finance certificates (TFCs), State Bank's Refinance Schemes, Credit Cards, Interbank transactions, underwriting, foreign currency forward cover and various kinds of bank accounts. The Commission observed that all deposits, except current accounts, would be accepted on Mudaraba principle. Current accounts would not carry any return and the banks would be at liberty to levy service charge as fee for their handling. The Commission also approved the concept of Daily Product and Weight age System for distribution of profit among various kinds of liabilities/deposits. The Report also contained recommendation for forestalling willful default and safeguarding interest of the banks, depositors and the clients. According to the Commission, prior/preparatory works for introduction of Shariah compliant financial system briefly included creating legal infrastructure conducive for working of Islamic financial system, launching a massive education and training program for bankers and their clients and an effective campaign Govt college of Mgt sciences ThanaPage 33
through media for the general public to create awareness about the Islamic financial following: Government is committed to eliminate Riba and promote Islamic banking in the country. For this purpose a number of steps are under way which are: 1. A legal framework is designed to encourage practice of Islamic banking by banks and financial institutions as subsidiary operations of their main operations; 2. Consultations and exchanges are undertaken with brother Islamic countries and renowned institutions of Islamic learning such as middle eastern countries and AlAzhar University of Egypt, to learn more about their experiences and practices; 3. Amendments in HBFC Act are being made in line with the directive of the Supreme Court. With these changes, HBFC would be fully Shariah compliant institution, which will play an effective role both in promotion of Islamic financing method but also in the development of the important housing sector; 4. Shariah compliant modes of financing like Musharaka and Mudaraba will be encouraged so that familiarity and use of such products is enhanced and their adoption at a wider scale made possible. It is governments intention to promote Islamic banking in the country while keeping in view its linkages with the global economy and existing commitments to local and foreign investors. The House Building Finance Corporation had shifted its rent sharing operations to interest based system in 1989. The Task Force of the M/O Law proposed amendments in the HBFC Act to make it Shariah Compliant. Having vetted by the CTFS, the amended law has been promulgated by the Government. Accordingly, the HBFC launched in 2001 Asaan Ghar Scheme in the light of amended Ordinance based on the Diminishing Musharakah concept. A Committee was constituted in the Institute of Chartered Accountants, Pakistan (ICAP), wherein the SBP was also represented, for development of accounting and auditing standards for Islamic modes of financing. The Committee is reviewing the system. The Finance Minister of Pakistan in his budget speech for the FY02 declared the
The Bank of Khyber
Internship report
standards prepared by the Bahrain based Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) with a view to adapt them to our circumstances and if considered necessary, to propose new accounting standards. It was decided in September 2001 that the shift to interest free economy would be made in a gradual and phased manner and without causing any disruptions. It was also agreed that State Bank of Pakistan would consider for: 1. Setting up subsidiaries by the commercial banks for the purpose of conducting Shariah products, 3. Setting up new full-fledged commercial banks to carry out exclusively banking business based on proposed Islamic products. Accordingly, the State Bank issued detailed criteria in December 2001 for establishment of full-fledged Islamic commercial banks in the private sector. Al Meezan Investment Bank received the first Islamic commercial banking license from SBP in January 2002 and the Meezan Bank Limited (MBL) commenced full-fledged commercial banking operation from March 20, 2002. Further, all formalities relating to the acquisition of Societe Generale, Pakistan by the MBL were completed, and by June, 2002 it had a network of 5 branches all over the country, three in Karachi, one in Islamabad and one in Lahore. The MBL now maintains a long term rating of A+ and short term rating of A1+, assessed by JCR VIS Credit Rating Co Ltd, signifying a consistent satisfactory performance. The Government as also the State Bank are mainly concerned with stability and efficiency of the banking system and safeguarding the interests, particularly, of small depositors. With this concern in mind it has been decided to operate Islamic banking side by side with traditional banking. The approach is to institute best practice legal, regulatory and accounting frameworks to support Islamic banks and investors alike. The year 2002-2003 witnessed strengthening measures compliant transactions; 2. Specifying branches by the commercial banks exclusively dealing in Islamic
taken in the areas of banking, non-bank financial companies and the capital markets
2.8
INTEREST FREE BANKING IN PAKISTAN
The quest to eliminate interest from the banking system of Islamic Republic of Islamic Republic of Pakistan is deep rooted.. While inaugurating the State Bank of Pakistan on 1st July 1948, the father of the nation Quaid-e Azam Mohammad Ali Jinnah said: I shall watch with keenness the work of your research organization in evolving banking practices compatible with Islamic ideals of social and economic life The adoption of western economic theory and practice will not help in achieving our goal of creating a happy and connected people. The Islamic Ideology Council (CII) also wanted to initiate interest free banking in Pakistan. In pursuance of these ideals, government took the step of Islamizing the banking sector operations in Pakistan. It was, therefore just before the end of 14 th century of Hijrah (12th Rabiul -Awal 1399- H/9th February, 1979) that the unique event in modern economic history took place, when Pakistan announced the elimination of usury, phase-wise from its financial and banking system and so profit and loss sharing (PLS) Accounts were introduced. In 2001 Supreme Court of Pakistan has passed a decision, in which the government has been ordered to develop RIBA Free economy in the country. In respect of this decision financial institutions and the government have been working for the last one year, for making necessary arrangements to implement the decision in a concerted way.
Chapter 3 INTRODUCTION TO THE KHYBER BANK OF PAKISTAN

3.1 HISTORICAL BACKGROUND
The Bank of Khyber
Internship report
The Bank of Khyber was established through an Act of the NWFP Assembly called, The BOK Act, 1991 passed in June 1991 the Bank was Formally launched on November 01, 1991 and its first branch office Commenced commercial operations at University Road, Peshawar on December 22 1991.
3.2
MISSION OF BOK
To be recognized in the market place by institutionalizing a merit and performance culture, creating a powerful and distinctive brand identity, achieving top-tier financial performance, and adopting and living out our core values.
To increase shareholders' value and provide excellent service and innovative products to customers through effective corporate governance, friendly work environment, and contributing towards an equitable sub-economic growth. Role of bank of Khyber in the development of N-W.F.P
3.3
VISION OF BOK
To be the pre-eminent financial institution in Pakistan and achieve market recognition both in the quality and delivery of service as well as the range of product offering.
3.4
OBJECTIVES OF BOK
BOK is a commercial bank. So being a commercial bank, the primary objective of BOK is to earn maximum profit. To achieve this following ways are adopted. 1. 2. By increasing deposits. By charging on loans disbursed to private sector and business community.
These are achieved by:
3.4.1
Procuring Low Cost Deposits
This era is characterized by severe competition, and banking industry is no Govt college of Mgt sciences ThanaPage 37
exception. Every bank, whether it is Pakistani or foreign, wants to procure as much deposits as possible, by providing better customer services. BOK, with special emphasis on corporate governance, is improving its facilities and services to attract customers with higher volume of deposits. BOK is applying two pronged strategy i.e. by improving the services and courtesy simultaneously. BOK has the largest deposits as compared to other competitors by accepting deposits on current, fixed, saving, term deposit and profit and loss sharing accounts.
3.4.2 Advancing and Lending Money to Its Clients

The earnings of any bank depend upon the amount of loans it extends. By assessing the credit worthiness of the clients, BOK disburses loans. The deposits so procured are invested in different projects. In extension of credit BOK prefers genuine sound and reliable parties. The credit section of BOK is well organized. The trained staff carries out extensive analysis before extending loans. The Bank gets substantial profit by charging interest
Branches of BOK Province

Azad khashmir KPK Punjab Sindh Baluchistan
Branches
Chapter 4
The Bank of Khyber
Internship report
MANAGEMENT AND ORGANIZATION OF BANK OF KHYBER OF PAKISTAN

4.1
ORGANIZATIONAL STRUCTURE OF BOK
Bank of Khyber is one of the modern organizations; a competent staff is Managing it. It is a centralized organization and the authority flows from top to Bottom. All the available information about the organizations management and Structures are given in this chapter. Based on Bank of Khyber has been entrusted to The Board of Directors. The Board consists of five directors comprising four Directors nominated by the Government of N.W.F.P.
4.2
BOARD OF DIRECTORS
The board of directors is the apex controlling body for the management of banks. Pursuant to section 11 of the banks (Nationalization) act 1974, the number of directors for the bank shall not be less than 5 and not more than 7, excluding the President. The federal government may, if it deems necessary appoint a chairman of the Board in respect of the bank. So board members of the BOK are led by the Chairman who is the President and is the Chief Executive officer (CEO) accompanied by 6 directors. The CEO of the bank presides over the meetings of the board. The government appoints the directors, richly experienced and caliber. The composition of Board of Directors is as under.
BOARD OF DIRECTORS
The board of directors comprises the following: * Mr. Bashir Ahmed * Additional Chief Secretary * Secretary Finance (N.W.F.P) Chairman & Managing Director Director Director
* Secretary Industries (N.W.F.P.) * Mr. Saeed-ur-Rehman. FCA CHART# 4.1
Director Director
Group Heads
Human Resource Group M. Ayub Hamid Executive Vice President Credit Management Group Imran Samad Executive Vice President
Divisional Heads
Business Development Division Sohail Khan Senior Vice President Credit Administration Division Hassan Afzal Tauni Head (CAD) Special Asset Management Division M. Yaseen Chaudhary Senior Vice President Operations & Support Division Shabeer Ahmed Sheikh Senior Vice President Business Development Division Lal Nawaz Khattak Head (BDD Conventional) Credits Management Division Zahoor Ahmad Khan Vice President Establishment Division Tariq Naseem Senior Vice President Risk Management Division Sher Muhammad Vice President
Compliance & internal Control Division Treasury & Investment Division Saeed Iqbal Khattak Masood A.S Wahedna Chief Compliance Officer Senior Vice President Information Technology Division Feisal Khan Head (I.T.) Internal audit Division Hermond javed Bhatti Head(IAD)
2.12 MANAGEMENT HIERARCHY

The management hierarchy represents the different positions and designations in the hierarchy of the BOK. However this is not the reporting hierarchy but merely represents the positions and grades on the basis of seniority grades.
The Bank of Khyber
Internship report
Chart# 4.2
BOARD OF DIRECTORS
4.2.1.1.1 Voting Rights

Upon a show of hands every member present in person shall have one vote upon a poll every member present or by proxy shall have one vote for every ten shares held by him, subject to a maximum of ten votes. The Federal Government as a shareholder may appoint any person to be present at any General Meeting and to vote on its behalf. Provided that subject to any exemption granted by the federal Government under section 93 of the Banking Companies Ordinance (BCO) 1962, the voting rights of any one shareholder shall not exceed 5% of the total voting rights of all shareholders of the bank. The share being offered herewith shall rank pair pass in all respects, except that these do not have the right elect or remove Directors of the Bank, being the right ordinarily available to the shareholders of the companies registered under the provisions of the Companies Ordinance, 1984.
4.3
EXECUTIVE BOARD
Mundane activities of commercial banks are looked upon by the executive board. Executive board directs and supervises the general affairs of any commercial bank. Numbers of the Board are appointed by the Federal Government and comprises the president, secretary and other members. The President who is the Chief executive of the board is vested with the responsibility of redirecting, controlling and managing the activities of the bank. BOK has an executive committee with the President has its Chairman, five SEVPs as its members and President Advisor as an observer. This is the premier body that has been given the authority to see the mundane affairs of the bank and sanction the financial and business proposals.
The Bank of Khyber
Internship report
4.4
CHIEF EXECUTIVE
In the administrative hierarchy, President is at the apex. Meetings of Executive Board are presided over by him. So he is responsible for management of the whole of the bank.
4.5
GROUP CHIEFS
Decentralization is an effective tool for managing any large and expended organization. So NBP has been divided into a number of divisions, where Regional Chiefs/SEVP/EVP supervises and controls each region.
4.6 MANAGEMENT
The day-to-day operations of the Bank are run by a capable team led by Mr. Bashir Ahmad who is a competent, well-qualified and highly respected Banker. He has served with the World Bank and as Federal Secretary to the Government of Pakistan. He has served as the Managing Director of PICIC, IDBP, NIT and Chairman, ADBP during his career. He holds a degree in Economics from the London School of Economics Over the past few years; Mr. Bashir Ahmad has gathered a team of professionals and well qualified senior Executives of the bank. These executives have been selected from foreign and Local private and public sector banks. Bank of Khyber emphasizes on lean, efficient and professionally managed Organization, with a strong private sector orientation. It competes for business on Commercially competitive terms with other banks in the province.
4.7 EMPLOYEES
The bank currently employs 300 regular officers in various cadres of the Bank. They include 1 Ph.D. 136 postgraduates including 40 MBAs from foreign and local universities and 156 graduates. The bank provides them with on the job Training, as well as exposure to advance courses and seminars conducted by the Govt college of Mgt sciences ThanaPage 43
Institute of Bankers in Pakistan and other professional institutes. The bank places High priority on professional education and encourages its employees to sit in the Professional examinations conducted by the institute of Bankers in Pakistan
4.8
HEAD OFFICE MANAGEMENT
. Head office management is divided into twelve Groups which are as under: 1.Operation Group 2.Treasury Management Group 3.Commercial and Retail Banking Group 4.Audit and Inspection Group 5.Special Asset Management Group 6.Finance Group 7.Corporate and Investment Banking Group 8.HR Management Department 9.Organizational Development and Training Department 10. Strategic Planning and Economic Research Group 11. Risk Management Group 12.IT Planning, development and implementation Group
The Bank of Khyber Chapter 5

5.1
Internship report
GENERAL BANKING AND DEPARTMENTALIZATION

General banking means the day-to-day business of bank, under the supervision of Vice President, Zonal Head Office of the main branch. General or day to day banking of BOK consists of various departments, which are explained below. 1.Deposit Department 2.Clearing Department 3.Inland Remittances Department 4.Bills Department 5.Advances Department 6.Cash Department 7.CD Department.
5.2
DEPOSIT DEPARTMENT
The basic function of a bank is to accept the surplus of individuals, public sector, and public institution and to honor Cheque drawn upon them.
How to Open an Account

The applicant is provided with a copy of rules and an application form to open an account. This form is filled by the applicant in a manner prescribed and duly singed by the applicant. An existing account holder of the bank must introduce the application. A copy of ID card is attached with the specimen signature card. The application is presented at the branch with the initial amount of deposit for credit of his account. The amount is entered in the passbook and is singed by the responsible officer of the bank; finally a Checkbook is issued to the account
holder, for withdrawal purpose.
Classification of Deposits
The deposits can be classified under three main heads. i.Current Account ii.Saving Account iii.Fixed Deposit iv.Profit/loss Account
1. Current Account or Demand Deposits

Current account or demand deposit can be withdrawn by Cheque or transferred to someone else by the depositor at any time without prior notice to the bank. This account can be opened with a minimum of Rs.500/. In such case the bank does not allow any interest on it, because such deposits are meant for short period and can be withdrawn without any prior notice. Current account can be opened by or through. a.Partnership b.Limited Companies Account c.Welfare Account d.Individual Account
a) Partnership Account
The assets of partnership are held partners of the firm, or by one of its member acting on behalf of all members as trustees for all of them. A partner has an implied power by law to open an account on behalf of his partnership firm, but not on his individual name. The bank only honors that Cheque which confirms to the mandate given to it by all the partners.
Procedure and Requirements for Opening Partnership Account

a.Names of all partners are taken with their specimen signature. b.Instructions for operation are obtained from each partner.
The Bank of Khyber
Internship report
c.Signature of authorized partner is obtained. d.A letter of partnership, signed by all partners is obtained. e.In case a partner who was not authorized to operate the account is now authorized by all partners. Thus the authority letter is obtained.
b) Limited Companies Account

Before opening an account for a limited company the following documents are obtained. i.The true copy of the certificate of incorporation. ii.True copy of the certificate of commencement of business (only in case of public limited company). iii.Three copies of the memorandum and article of Association. iv.True copy of the resolution of the Board of Director regarding conduct of the account.
Procedures and requirements for opening a Limited Company Account

i.The certificate of incorporation and commencement certificate of business should be called in original which are returned after inspection. ii.The specimen signature of the director named in the resolution authorized should be obtained on specimen card. iii.In case the company is taken-over by the Government fresh instruction are obtained from the managing director appointed by the government
c) Welfare Account
The Associations and welfare unions open such accounts.
Requirements for Opening Welfare Account

No registration certificate is needed but only a paper containing registration of the Association is sufficient.
d) Individual Account (personnel Account)

Any individual can open individual account. Following are some requirements to be fulfilled by the individual in order to be able to open an account with a bank.
Requirements for Opening an Individual account:

i.National ID Card ii.Introducers reference iii.Rs.500/- or maximum as initial amount to be credited to his account. Procedure is the same as explained earlier in this chapter.
e) Saving Account
In saving account the basic purpose is to mobilize the saving trend in the lives of people and to enable people to draw money within certain limits. In saving account al BOK the customers are not allowed to draw a big amount at once without any notice. The customer is bound to follow the rules and regulations of the bank. Saving accounts can be opened in following shapes. a.Individual account b.Joint account
f) Fixed Deposit Account

In case of fixed deposit account the time period of the account is in accordance of the different fixed deposit schemes offered by the bank and according to wishes of the customers. The customers can not withdraw money from his/her account in accordance and compliance of terms decided by the bank and the customer.
The Bank of Khyber

5.3 CLEARING DEPARTMENT i. Clearing
Internship report
Every bank performs the function of paying and collecting. The cheque drawn on other bank by the customers of the bank is collected by the bank for or without charging fee is called clearing. The bank through the clearinghouse (State Bank of Pakistan) performs the function of clearing.
ii. Clearinghouse
A clearinghouse is a place where the representative of all banks get together to settle the payment and receipts of Cheques drawn on each other.
Functions of Clearing Department in Branch

i.To accept transfer, transfer delivery and clearing Cheques from the customers of the branch and to arrange for their collection ii.To arrange the payment of Cheque drawn on the branch and give Cheque for collection to any other branch of BOK or any other member or sub-member of local clearing house. iii.To collect amounts of Cheques drawn on members of local clearing house sent for collection by BOK branches, not represented at the local clearing house.
Types of Clearing
a.Outward clearing b.Inward clearing
A) OUTWARD CLEARING
It includes those Cheques and other instruments which are sent by the bank to other banks for payment on behalf of its own clients. Cheques are sent to clearing house through local main branch. Govt college of Mgt sciences ThanaPage 49
Procedure for Outward Clearing

i)Account number of payee/endorsee is written on backside of the Cheques. ii)The investment and paying-in-slips are separated. iii)The instruments are sorted bank wise and branch wise. iv)Schedules are prepared. v)Jottings of all the schedules are taken in the clearinghouse statement. Amount of Cheques is written in delivered and to pay columns. vi)After balancing the outward clearing, the pay-in-slips are released to the C.D. Department. vii)After balancing a transfer debit voucher is prepared. viii)The instruments, schedules etc. are delivered to the message from the main branch.
B) INWARD CLEARING
This includes the cheques drawn on the bank presented by other banks for payments.
Procedure of inward clearing at the Drawer Branch

i)Numbers of instruments noted in the schedule are verified immediately on receipt. ii)The amounts of all the instruments are jotted down and totaled. It should be equal to the amount mentioned in the IBDA from the local main branch. iii)The IBDA is responded crediting the account in the IBDA from the main local branch. iv)The IBDA is responded crediting the account of the main branch. v)The amounts are released to the concerned department.
Types of Cheques Collected by Clearing Department 1) Transfer Cheques
The Bank of Khyber

KHYBER BANK..
Internship report
These are the cheques, which are collected and paid by the same branch of For example Mr. A is a customer of KHYBER BANK Jamrud Road Branch and draws a Cheque in favor of Mr. B who is also the customer of the same branch.
2) Transfer Delivery Cheques

The Cheque that are collected and paid by two different branches of a bank situated in the same city. E.g. a person draws a Cheque on KHYBER BANK., University Road Branch in favour of another person who maintains an account Jamrud Road Branch...
3) Clearing Cheque
When the payee/endorsee and the drawer of the Cheque maintain account with different banks, the collecting bank can receive the amount of cheque from the paying bank in any of the following manner. a.The bank can maintain an account with paying banks. b.The Cheques can be exchanged in clearing house through their representatives.
5.4 INLAND REMITTANCE DEPARTMENT

Inland remittance can be defined as the transfer of money payable at certain place within the country. Inland remittances can be classified into following. i)Within locality ii)Outside locality i. WITHIN LOCALITY
When a branch situated in Peshawar is required to send draft to other branches within the same city, the process is known as within the locality.
ii.OUTSIDE LOCALITY Out side locality means the transfer of money payable outside the city. For Govt college of Mgt sciences ThanaPage 51
example some Peshawar branch sends a draft to Karachi branch. This can be done through following means. i)Telegraph transfer ii)Mail transfer iii)Demand Draft I. T.T. MT DD.
Telegraphic Transfer (T.T.)
In T.T. the order to pay is sent by cable. a.Government draft b.Bank draft a. Government Draft
It is concerned with the government business and only authorities can issue such type of draft. b. Bank Draft All branches of H.B.L issue bank draft. DIFFERENCE BETWEEN GOVERNMENT AND BANK DRAFT a)The bank drafts are issued to any customer on request. While government drafts are issued to any department of government. b)Bank drafts are issued by any branch of the bank, whereas the government drafts are issued only by authorized branches, who deal in treasurery business of the country government. c)Through bank draft one can get the amount from any bank but in case of government draft only the authorized section can deal and is able to issue cash.
ii.
Mail Transfer
It is an order to pay a specified sum of money to the person named in the instrument. It sent by surface mail or airmail. The issuing bank charges a commission of issuance, which is, called MT rate.
The Bank of Khyber

iii. Demand Draft
Internship report
Money could be sent from one place to another place by means of demand draft. A demand draft is an order instrument by the issuing bank requiring the other branch of the bank to pay a specified amount of money to the person on presentation of the draft in the specified branch. A draft can be obtained by a person who wants to send money by paying the amount of the draft and commission to the housing bank, and can be sent by post to the person needed to be paid.
5.5
BILLS DEPARTMENT
Definition of bill of exchange: The bill of exchange is an unconditional order in writing addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or future determinable future time, a sum certain in money to the order of a certain person or to bearer.14 Bills of Exchange are of two types: i.Inland Bills ii.Foreign Bills Inland Bill: These are generally used inside Pakistan. Inland can be further divided into two: a)Out ward bills collection (OBC) b)Inward bills collection (IBC)
a. Outward Bill: Outward bills are sent to the banks outside the city.
b. Inward Bill:
Inward bills are those that other bank sent to any Bank of Khyber Govt college of Mgt sciences ThanaPage 53
c.Foreign Bills for Collection (FBC): This type of bills are related to foreign drafts these are first sent to foreign exchange branch which collects these instruments from the concerned branches and banks are then valued in foreign currency.
5.6
ADVANCES DEPARTMENT
This department is mainly concerned in dealing with loans given to people/customers on their request. These customers can get loans in a specified manner. The loan can be of any domination and nature in accordance to the request made by the customer.
TYPES OF ADVANCES (LOANS)

Advances can be classified into three types. i)Overdraft ii)Cash credit iii)Demand loan i) OVERDRAFT
The over draft facility is given to the already existing worthwhile proven loyal customers. This is actually a facility that allows the account holder to draw over and above the amount, which he maintains in his account. The duration of this facility provision is up to one year, which can be extended. This facility requires no security to be placed with the bank.
ii)CASH CREDIT Cash credit is provided to the customers on two types of securities. a.Pledge
The Bank of Khyber

b.Hypothecation
Internship report
a.
Pledge
The bailment of goods as security for payment of a debt or performance of promise is called pledge. Pledge is that form which allows the bank to be in control of properties and or stocks. Bank is responsible for look after of the properties.
b.
Hypothecation
When property in the goods is charged as security for a loan from the bank but the ownership and possession is left with the borrower, the goods are said to be hypothecated. In hypothecation the bank is not responsible for look after of the properties. The property remains under the supervision of the customer, and the customers are requested to send short period annually published reports.
iii)DEMAND LOANS The loans, which are provided to parties on the prudence of the manager. The people who are not the customer of the bank generally take such loan.
FUNCTIONS OF ADVANCES DEPARTMENT

The advances department performs the following functions. i)To finance trade industry and agriculture ii)To give loans to business community. iii)Give loans to students for higher education. iv)Give loans to farmers for crops, cultivation, seeds, fertilizers, tractors etc. v)House building loans are give to needy for construction of houses.
5.7
CASH DEPARTMENT
The basic function of cash department in the bank is to pay and receive cash to Govt college of Mgt sciences ThanaPage 55
and from its customers. When the cash is received it is deposited with the bank. A Cheques book is issued to the customers with the help of which they are able to withdraw cash whenever they need it. Cheque is an order drawn on bank to pay specified amount of money to the person mentioned in the order/Cheque. There are three types of Cheques.
i.
Bearer Cheques
The bearer Cheque can be cashed by holder of the instrument who presents it at the counter for payment. In such case no endorsement is required.
ii.
Order Cheque
When on the word bearer a line is struck the Cheque becomes an order Cheque. Which can be only paid to the person mentioned in it?
iii.
Crossed Cheque
It is a sort of Cheque rather a simple Cheque but two parallel lines are struck on its face and the word & Co are written in between these two lines. This Cheque can only be deposited in payees account or the payee can indorse it to somebody else.
5.8
CD DEPARTMENT
CD Department performs small few but very important functions in the retail banking. The main functions of CD DEPARTMENT are maintaining records of saving account holders, their signatures, their balances, standing instructions, issuance of Cheques, and book scrutiny of Cheque etc.pension department.
Chapter 6
The Bank of Khyber
Internship report
ANALYSIS OF REPORT OR ORGANIZATION ANALYSIS
6.1
THE NEED OF RESEARCH
There are about 22 Pakistani schedule banks operating in the NWFP Having 1147 branches or about 15% of all the branches of scheduled Pakistani Banks in the country. In addition 3 foreign scheduled banks with a total of 3 Branches are also operating in the province. Hence, competition between the Banks. The competition made compulsion on BOK to increase its deposits and Make comparison with the other banks. This comparison will show the status of BOK in the market. Therefore, need was felt to carry out a research on the Role Of Financial Deposits in the BOK.
RESEARCH METHOD FINANCIAL ANALYSIS

Financial statement analysis are the principal means of reporting the financial condition and result of operations of an organization, or in other words we can say that financial analysis are carried out for the purpose of identifying the financial strengths and weaknesses of an organization by properly establishing the relationships between the balance sheet and income statement items. This analysis helps various parties in decision making who are interested in the activities of business. To improve the quality of decision making, proper analysis of these statements helps a lot. The firm itself and the outsider providers of capitalcreditors and investorsall undertake financial statement analysis. The type of analysis varies according to the specific interests of the party involved. For example, trade creditors (suppliers owed money for goods and services) are primarily interested in the liquidity of a firm. There claims are short term, and the Govt college of Mgt sciences ThanaPage 57
ability of the firm to pay these quickly is best judged by an analysis of the firms liquidity. The claims of bondholders, on the other hand, are long term. Accordingly, bondholders are more interested in the cash-flow ability of the firm to service debt over a long period of time. Investors in a companys common stock are principally concerned with present and expected future earnings as well as with the stability of these earnings about a trend line. As a result, investors usually focus on analyzing profitability. They would also be concerned with the firms financial condition insofar as it affects the ability of the firm to pay dividend and avoid bankruptcy. Management also employs financial analysis for the purpose of internal control and to better to better provide what capital suppliers seek in financial conditions and performance from the firm. Similarly government agencies analyze financial data for tax purposes
6.1 SIX YEARS PERFORMANCE OF BOK AT A GLANCE

TABLE: 6.1 2010 Deposit Advance(Net) Investment Total Asset Capital&Reserves Return on Equity 3,6981 1,8238 19,853 50,794 5,604 10.05% 2009 26,286 11,836 17,926 38,811 5,041 12.04% (799) (637) Rs in million 2008 24,732 12,644 8,985 31,339 5,678 2.44% 206 137 2007 21,411 10,086 8,903 29,712 5,540 5.11% 77 213 2006 19,077 9,189 8,565 27,183 2,796 8.38% 203 203 2005 17,452 10,590 7,698 25,074 2,047 11.30% 234 219
Profit/Loss(B.Tax) 713 Profit/Loss(A.Tax) 563
The Bank of Khyber
Internship report
100% 80% 60% 40% 20% 0% 2010 2009 2008 2007 2006 2005 Es at
Profir/Loss(After tax) Graph6.1
100% 80% 60% 40% 20% 0% 2010 2009 2008 2007 2006 2005 Es at
Profit/(Loss)Before Tax Graph6.2
STATEMENT OF FINANCIAL POSITION

(OR) BALANCE SHEET

AS AT DECEMBER 31, 2010
DECEMBER31, 2010 DECEMBER31 , 2009
Assets
Cash and balances with treasury 5,079,720 1,542,102 Balances with other banks 1,502,684 2,403,698 Lending to financial institutions 2,562,093 1,810,846 Investments 19,852,093 17,925,911 Advances 18,238,333 11,835,962 Operating fixed assets 1,121,554 1,013,670 Deferred tax asset net 443,320 456,420 Other assets 1,993,869 1,821,961 Total Asset 50,794,303 38,810,570 LIABILITIES Bills payable 280,665 229,973 Borrowings 2,894,759 5,147,063 Deposit and other accounts 36,981,351 26,285,794 Sub-ordinate loans Liabilities against assets subject to finance lease Deferred tax liabilities Other liabilities 1,237,155 1,185,470 Total Labilities 41,393,930 32,848,273 NET ASSETS REPRESENTE BY 9,400,373 5,962,297
Share capital 5,004,001 5,004,001 Reserves 548,039 435,342 Unappropriated profit /(accumulated Loss) 52,079 (398,710) 5,604,119 5,040,633 Advance against shares subscription 3,224,000 224,000 8,828,119 5,264,633 Surplus on revaluation of assets 572,254 697,664 Total Labilities & Equity 9,400,373 5,962,297
The Bank of Khyber
Internship report
PROFIT AND LOSS ACCOUNT (OR) INCOME STATEMENT

FOR THE YEAR ENDED DEC31,2010
DEC31,2010 DEC31,2009
Mark-up / return / interest earned Mark-up / return / interest expensed Net mark-up / interest income
4,207,155 2,925,066 1,282,089
3,390,014 2,390,388 999,626
Provision against non-performing loans and advances net 48,916 659,758 (Reversal of provision) / provision for diminution in the value of investments net ( 371,682) 602,061 Bad debts written off directly (322,766) 1,261,819 Net mark-up / interest income after provisions 1,604,855 (262,193) NON MARK-UP / INTEREST INCOME Fee, commission and brokerage income 172,565 127,123 Dividend income 74,848 117,458 Income from dealing in foreign currencies 30,761 3,371 (Loss) / gain on sale of securities net (285,934) 67,148 Unrealized gain / (loss) on revaluation of investments classified as held for trading net 1,431 (1,294) Other income 66,006 69,896 Total non-mark-up / interest income 59,677 383,702 1,664,532 121,509 NON MARK-UP / INTEREST EXPENSES Administrative expenses Other (reversals) / provisions / write offs Other charges Total non-mark-up / interest expenses Extra ordinary / unusual items ______________ PROFIT / (LOSS) BEFORE TAXATION Taxation - Current - Prior years - Deferred PROFIT / (LOSS) AFTER TAXATION (Accumulated loss) / unappropriated profit brought forward Unappropriated profit / (accumulated loss) carried forward Earnings per share - Basic and Diluted (in Rupees) 89,631 2,040 57,984 149,655 563,486 398,710 164,776 1.13 713,141 _____________ (798,770) 75292 (236,879) (161,587) (637,183) 238,473 (398,710) (1.27) 943,680 (5,705) 13,416 951,391 713,141 719,453 185,500 15,326 920,279 798,770
STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER31,2010

December31,2010 December31,2009
Profit / (loss) after taxation for the year Other comprehensive income ____________ Total comprehensive income for the year _
563,486
( 637,183)
_ _____________ 563,486 (637,183)
CASH FLOW STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2010

December31,2010 December31,2009
CASH FLOWS FROM OPERATING ACTIVITIES Profit / (loss) before taxation Less: dividend income 713,141 (798,770) 74,848 117,458 638,293 (916,228)
Adjustments for non-cash changes Depreciation 39,039 23,998 Amortization 1,940 __ Provision against non-performing advances net 48,916 659,758 Unrealized (gain) / loss on revaluation of investments Classified as held-for-trading net (1,431) 1,294 (Reversal) / Provision for diminution in the value of investments-net (371,682) 602,061 Other (reversals) / provisions / write offs (5,705) 185,500 Gain on sale of operating fixed assets (12,013) (2,853) (300,936) 1,496,758 337,357 553,530 (Increase) / decrease in operating assets: Lending to financial institutions (745,542) 336,148 Net investments in held-for-trading securities 384,220 (757,740) Advances net (6,451,287) 148,094 Others assets (excluding advance taxation) (357,432) (65,426) 7,170,041 Increase / (decrease) in operating liabilities: Bills payable 50,692 107,457 Borrowings (2,252,277) 4,236,345 Deposits and other accounts 10,695,557 1,553,599 Other liabilities 51,685 293,099 8,545,657 6,190,500 Income tax refunded Net cash flows from operating activities CASH FLOWS FROM INVESTING ACTIVITIES 91, 129 40,490 1,804,102 6,445,596
The Bank of Khyber

Net investments in available-for-sale securities Net investments in held-to-maturity securities Net investment in related party Dividend received Investments in operating fixed assets Proceeds from sale of operating fixed assets Net cash used in investing activities
Internship report
(2,676,458) (7,726,709) 570,963 41,784 _ 4,496 74,848 117,458 (172,915) (86,362) 36,064 4,876 (2,167,498) (7,644,457)
CASH FLOWS FROM FINANCING ACTIVITIES Advance against shares subscription Net cash flows from financing activities Increase / (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of the year Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at end of the year
3,000,000 3,000,000
224,000 224,000 (974,861) 4,920,661 _ 3,945,800
2,636,604 3,945,800 _ 6,582,404
103
STATEMENT OF FINANCIAL POSITION - ISLAMIC OPERATIONS
December31,2010
December31,2010
December31,2009
ASSETS
Cash and balances with treasury banks 740,552 534,375 Balances with and due from financial Institutions 554,970 1,377,610 Lending to financial institutions _ 20,000 Investments 4,612,539 3,040,878 Financing and receivables Murahaba Ijarah Ijarah under IFAS-2 Musharaka Diminishing musharaka Others 1,579,798 635,353 267,208 404,21 271,100 178,467 31,091 31,025 800,391 700,975 _3,000 2,949,588 1,953,031 Less: Provision against non-performing facilities (37,444) (65,968) 2,912,144 1,887,063 Operating fixed assets 86,453 67,947 Other assets 499,076 508,876
LIABILITIES
Bills payable Deposits and other accounts 40,525 74,134
Current accounts Saving accounts Term deposits Others
8825,325 4,181,593 2,218,634 132,860 7,415,413 Deposits from financial institutions remunerative Deposits from financial institutions - non remunerative Other liabilities 310,020 8,047,374
1,711,853 3,560,648 473,606 81,815 5,827,922 281,416 263,825 1 1 323,889 6,489,771
NET ASSETS
REPRESENTED BY Islamic Banking Fund Reserves Unappropriated profit Surplus on revaluation of assets
1,358,330
460,000 _ 898,330 1,358,330 _ 486,853 946,853 460,000
946,978
1,358,330 REMUNERATION TO SHARIAH ADVISOR
125 946,978 850 594
CHARITY FUND
Opening balance at the start of the year _Additions during the year Payments during the year Closing balance at the end of the year . 583 28 (611) 583 583
PROFIT AND LOSS ACCOUNT - ISLAMIC OPERATIONS

December31,210
Markup / return earned Return on deposits and other dues Net markup / return earned Provision against non-performing financing Provision for diminution in the value of investments Bad debts written off directly Net markup / return income after provisions NON MARK-UP INCOME Fee, commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale of securities Other income Total non-markup / interest income OTHER EXPENSES Administrative expenses Other charges Total non-markup / interest expenses Unappropriated profit brought forward 486,853 7,225 12,897 56,840 650,276 283,737 62 238,799 411,477 480,866 181,963 219 182,182 298,684 188,169 14,470 35,193 858,664 295,702 562,962 (28,524) (1,950) (30,474) 593,436 36,718 169 (11,177) 445,673 20,554
December31,2009
676,489 241,993 434,496 (13,127) 1,950
Profit available for appropriation
898,330
486,853
6.2 STRATEGIES PURSUED BY BOK IN EXTENDING THE
The Bank of Khyber

FINANCE
Internship report
Khyber bank of Pakistan has a scale of 1-10 from best to worst on which they rate their credit risk before extending credit. According to this scale the country itself stands at level 5. Whereas various sectors are at level 6, which is a pink area. At Khyber bank of Pakistan credit training is an important part of credit officers training and that is why their credit personnel keep abreast of the organization's expectations in terms of credit policies implementation. Apart from the Risk Asset Review Team mentioned earlier, their are Remedial Management Unit which looks after possible bad debts.Out of the about 4000 industries now operation in the country 150 are selected on the basis of their strategic importance to the country and economy by the Khyber Bank of Pakistan. After detailed studies of these industries, 50 are selected to be the target market. Among these industries only the top tier companies are served or the ones that have the potential to get to the top tier. This is established using the scale devised to weigh each company on certain criteria. Their sector break up shows that they are well diversified in all strategically important industries. Khyber Bank of Pakistan has already started attracting Pakistan's blue chip companies due to its single party credit limit that is the highest in the country after Citibank. The main competitor's in this area are Citibank, Bank of America, ANZ Grindlays and ABN-AMRO.Khyber Bank of Pakistan has taken a few very bad hits in the Textile and Cement sector. The poor performance of the cement sector is explained by Government regulations that have turned the cement sector into a low margin sector from a high profitability sector with a potential to grow due to the expected boom in the construction industry. A slowdown in the economy in general and the private sector in particular has resulted in some private sector companies defaulting in their loan payments. BANK OF KHYBER of Pakistan had funded exposure on some of the companies that have defaulted.
The financial data of BOK is analyzed in the following two ways. Govt college of Mgt sciences ThanaPage 65
1.Time Series analyses 2.Index Analysis Common size and Index analysis are the two types of analysis which are carried out to measure firms performance over time in relation to itself. This type of analysis is called time series analysis. Whereas the analysis carried out to measure firms performance with other firms in the industry is known as cross-sectional analysis.
6.3 COMMON SIZE ANALYSIS

An analysis of percentage financial statements where all balance sheet items are divided by total assets and all income statement items are divided by net sales or revenues is called common size analysis.. Common-size analysis can give analyst valuable insight into changes that have occurred in a firms financial condition and performance. As common-size analysis gives us relative percentage of an item with respect to total, so the growth or decline in various items of balance sheet and income statement can not be detected from common-size percentages.
Table 6.2 COMMON SIZE ANALYSIS OF" BOK" BALANCE SHEET
The Bank of Khyber
Internship report
Rupee in Million (2009) (2010) Commonsize analysis% (2009) (2010)
Assets
Cash & Bal. with Try. Banks Bal. With other banks Lendings to fin. Institutions Investments Advances Other assets Operating fixed assets Deferred Tax Assets
1,542,102 2,403,698 1,810,846 17,925,911 11,835,962 1,821,961 1,013,670 456,420 38,810,570 229,973 5,147,063 26,285,794 1,185,470 32,848,273 5,004,001 435,342 (398,710) 5,040,633 697,664 5,962,297 5,962,297 5,079,720 1,502,684 2,562,093 19,852,093 18,238,333 1,993,869 1,121,554 443,320 50,794,303 280,665 2,894,759 36,981,351 1,237,155 41,393,930 5,004,001 548,039 52,079 5,604,119 572,254 3,224,000 9,400,373 100.00 83.9 7.30 66.8 84.5 11.7 100.00 100.00 100.00 53.23 5.82 0.55 59.61 6.08 34.29 100.00 3.60 2.98 3.97 6.1 4.66 46.1 30.4 4.69 2.61 1.17 100.00 0.70 15.6 80.0 10.0 0.02 5.04 39.08 35.90 3.92 0.02 0.87 100.00 0.67 6.99 89.3
Total Assets
Bills payable Borrowing from fin. Inst. Deposits & other accounts Liabilities Against assets subject to Finance lease Other liabilities Deferred tax liabilities
Total Liabilities
Share capital Reserves Unappropriated profit Total Surplus on Reval. of assets Shareholders Equity
Total Liabilities & Equity
6.3.1.1
COMMON SIZE ANALYSIS OF BALANCE
As common size analysis shows the proportionate percentage of the different items of Balance Sheet with respect to Total Assets. The common size analysis of BOK balance sheet shows that both the current assets and current liabilities are increasing. Among current assets investments are showing an increasing trend, while advances are showing a decreasing trend at the same time. The reason behind this shift is that interest rates have been increasing in year 2009. Bankers are left with the only option of investing in short term investments, to increase their profit margin. Investments, as being a non-interest source of income are more promising than advances that are becoming less profitable due to growing interest rates. This proclivity towards investments seems to be abetting in the near future as well-where interest rates are showing increasing trend. Topping it is the factors that at the moment banks are washed with liquidity.On the liability side of the balance sheet total liabilities are increasing. Major changes occur in bills payable, deposits and other accounts, liabilities against assets subject to financial lease and deferred tax liabilities. Although borrowing from financial institutions and other liabilities decreased yet increase in former items was greater than decrease in later items causing total liabilities to increase. Among bills payable, bills payable in both local currency and foreign currencies increased. Among deposits and other accounts growth was recorded in all the categories i.e. fixed, saving and current (remunerative). However non remunerative current accounts remunerative deposits from financial institutions declined. Economic stability and increased foreign remittances were the major reasons in this growth in deposits. Deferred tax liabilities were generated against the surplus on revaluation, securities and fixed assets as well as against exchange equalization reserve. Liabilities against assets subject to financial lease increased because more vehicles were hired against financial lease during 2009. Borrowings from financial institutions decreased because banks are already facing excessive liquidity and need for borrowings decreased accordingly. There is no change in share capital and reserves also remained almost the same, however there is considerable growth in unappropriated profit mainly contributed by surplus on
The Bank of Khyber
Internship report
Table 6.3 COMMON SIZE ANALYSIS OF"BOK" INCOME STATEMENT Mark up revenue Mark up expense Gross profit margin Provision for advan: Provision for invest: Pro:against B/s oblig: Bad debts written off Net markup income
3,390,014 2,390,388 999,626 659,758 602,061 1,261,819 4,207,155 2,925,066 1,282,089 48,916 ( 371,682) (322,766) 100.00 70.5 29.4 19.4 17.7 37.2 100.00 235.9 30.4 1.1 8.8 7.6
(262,193)
1,604,855 7.7 38.1
Fees & commission Dividend income Exchange income Share of Profit of J/V Other Income Total non-markup
127,123 117,458 3,371
172,565 74,848 30,761
3.7 3.4 0.09
4.1 1.77 0.7
69,896 383,702 1,664,532
66,006 59,677 1,664,532
2.0 11.3 49.1
0.01 1.4 39.5
Total income
Administrative Exp: Other provisions Share of loss of J/V Other charges Non-markup Exp: Amort: of def: cost Staff welfare fund Profit before Tax Taxation Profit after taxation
719,453 185,500
943,680 (5,705)
21.2 0.5
22.4 0.13
15,326 920,279
13,416 951,391
0.45 27.1
0.3 22.6
(798,770) (161,587) (637,183)
713,141 149,655 563,486 23.5 4.7 18.7 16.9 3.5 13.3
6.3.2 COMMON SIZE ANALYSIS OF INCOME STATEMENT
The Bank of Khyber
Internship report
The common size analysis of Income Statement of BOK as given in the above table is showing a consistent increasing trend in the banks gross profit margin. The main reason behind this increase is that the bank has controlled its mark up expenses in relation to total mark up revenue, which were constantly reduced from year 2010 to in the year 2009. In simple words we can say that this declining trend in the mark up expenses resulting in the increased gross profits. Mark up expenses are actually cost of sale incase of a bank. Furthermore this increasing trend in gross profit margins shows the efficiency of the banks management in controlling mark up expenses. So this increasing trend of gross profit margin is a positive or healthy sign and the banks management should continue such type of efforts in order to achieve such type of results in the future.Now if we look at the figures of total income of the bank, there is consistent increase. As total income is the summation of both mark up income and non mark up income. This increase in total income is due to the increase in both mark up income and non mark up income, and the increase in both is consistent. Here total non mark up income consists of fees and commissions, dividend income, exchange income, share of profit of J/V and other income. If we observe each item, we see that fees and commissions are constantly increasing i.e. in the year 2010 in the year 2009 it increases. Dividend income is also constantly increasing i.e. in 2010, in 2009, the case with exchange income is opposite i.e. it is decreasing all the time. All these resulted in increased total non mark up income. But broadly speaking this increase in total mark up can be linked with the constantly decreased mark up expenses that resulted in consistent increased gross profits.If we look at the figures of non mark up expenses there is increasing trend and this increasing trend in these expenses is due to the increase in administrative expenses. Just like the gross profit margin, net profit margin has also shown a continuous Growth trend. The net profit margin increased from 1,282,089 in the year 2010 to 999,626 in the year 2009; thereafter it increased to of the total sales in The year 2010. Over the period of three years from 2008 to 2009, the increase in Gross profit percentage is higher than the increase in net profit percentage. .6.4
INDEX ANALYSIS
An analysis of percentage financial statements where all balance sheet or income statement figures for a base year equal 100.00 (percent) and subsequent financial statements items are expressed as percentages of their values in the base year. Table 6.4 INDEX ANALYSIS "BOK" BALANCE SHEET Rupees in millions Index Analysis (% Change)
2009 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 41,393,930 5,004,001 548,039 52,079 5,604,119 572,254 3,224,000 9,400,373 100.00 100.00 100.00 100.00 100.00 100.00 100.00 2010 329.4 62.5 141.4 110.7 154.0 109.4 110.6 97.1 130.8 122.0 56.2 140.6 104.3 126.0 100 125.8 13.06 111.1 82.02 54.0 157.6
Assets
Cash & Bal. with Try. Banks Bal. with other banks Lendings to fin. Institutions Investments Advances Other assets Operating fixed assets Deferred Tax Assets Total Assets Bills payable Borrowing from fin. Inst. Deposits & other accounts Liabilities Against assets subject to Finance lease Other liabilities Deferred tax liabilities Total Liabilities Share capital Reserves Unappropriated profit Total Surplus on Reval. of assets Shareholders Equity Total Liabilities & Equity
2009 1,542,102 2,403,698 1,810,846 17,925,911 11,835,962 1,821,961 1,013,670 456,420 38,810,570 229,973 5,147,063 26,285,794 1,185,470 32,848,273 5,004,001 435,342 (398,710) 5,040,633 697,664 5,962,297 5,962,297
2010 5,079,720 1,502,684 2,562,093 19,852,093 18,238,333 1,993,869 1,121,554 443,320 50,794,303 280,665 2,894,759 36,981,351 1,237,155 -
The Bank of Khyber
Internship report
Index Analysis of Balance sheet OR Index analysis of financial Position 6.4.1 INDEX ANALYSIS OF BOK BALANCE SHEET
Index analysis of the balance sheet over a span of Two years shows that total assets increased by and in year 2009 and 2010 respectively. This was due to many factors like a surge in the balances with other bank head; increasing by in year 2010 and then jumped to in the year 2009. This was accompanied by an increase to the lending to the financial institution which increased by in the year 2010 and Then in yr 2009. But the major contributor was investments head; though decreased by in the year 2010 but then sky rocketed to a huge increase. Operating fixed assets also increased to 2009 in year 2010, therefore, hastened the process of increase in total assets.This would be much higher, had there been no counter effects by other heads. Cash balances, though increased in year 2010 but Nose dived with in year 2009. Other assets also showed a fluctuating trend, firstly increasing by in year 2010and then sloping downward in year 2009. But the most prominent head which showed declining drive is advances, that increased in year 2010 and then coming down to a very low figure in year 2009.So the trend Analysis shows a mix trend among various items though as a whole increasing. Actually fall in lending rates is the major factor. Therefore banks assets increased In the heads like balances with other banks lending to financial institutions and Investments. All these are more lucrative and promising than advances and cash And balance with treasury banks which area paying nearly nothing to banks as a profit. So naturally, banks are maintaining there assets in such a form which is comparatively more profitable. Hence over concentration is on the investments in stocks and T bills but in 2010 lending rates are showing increasing trends, which may change the situation in the future. Banks investments portfolio is increasing but at the expense of national investment in industrial sector. If there is an investment climate, then invariably the banks major source of earning would be advances.Total liabilities also increased 2010 and in year 2009. increase came through an accumulation of bills payable, which rose up to in 2010 on 2009.Similarly deposits also showed an upward trend i.e. in year 2010 in year Govt college of Mgt sciences ThanaPage 73
2009. Then deferred tax plummeted in year 2010 but rose up to in year 2009. This increase was contained by Borrowing from Financial Institutions, which increased in year 2010 and other liabilities increased in year 2010 but showed a decline in the Pervious year in the year 2009. Table:6.5 INDEX ANALYSIS OF "BOK" INCOME STATMENT Rupees in Millions 2009 Mark up revenue Mark up expense Gross profit margin Provision for advan: Provision for invest: Pro:against B/s oblig: Bad debts written off Net markup income Fees & commission Dividend income Exchange income Share of Profit of J/V Other Income Total non-markup Total income Administrative Exp: Other provisions Share of loss of J/V Other charges Non-markup Exp: Amort: of def: cost Staff welfare fund
3,390,014 2,390,388 999,626 659,758 602,061 1,261,819 (262,193) 127,123 117,458 3,371 69,896 383,702 1,664,532 719,453 185,500 15,326 920,279 -
Index Analysis(% Change) 2009

100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 -
2010
4,207,155 2,925,066 1,282,089 48,916 ( 371,682) (322,766) 1,604,855 172,565 74,848 30,761 66,006 59,677 1,664,532 943,680 (5,705) 13,416 951,391 -
2010
124.1 122.3 128.2 7.4 61.7 25.5 612.0 135.7 63.7 912.5 94.4 15.5 100 131.1 3.0 87.5 103.3 -
The Bank of Khyber

Profit before Tax Taxation Profit after taxation
(798,770) (161,587) (637,183)
Internship report
713,141 149,655 563,486 100.00 100.00 100.00 89.2 92.6 88.4
6.4.2 INDEX ANALYSIS OF INCOME STATEMENT

The Index analysis of Income Statement ofBOk as given in the above table is showing a consistent increasing trend in the banks gross profit margin. The main reason behind this increase is that the bank has controlled its mark up expenses in relation to total mark up revenue, which were constantly reduced from 122% in the year 2010 in the year 2009 in simple words we can say that this declining trend in the mark up expenses resulted in the increased gross profits. Mark up expenses are actually cost of sale incase of a bank. Other factors which contributed towards increasing profits were reduction in the provision for investments which decreased to 61.7% in the year 2010 in the year 2009. However provision for advances geared up to reach 7.4 in the year 2010 and then moved down in the year 2009. So as investments head is yielding more profit, simultaneously it is adding to the expenses of the bank Provision against non performing loans increased inn 2010 but decreased considerably in the year 2009. In the year 2010 huge amount was transferred from NDFC and was included in the provision. But in the year 2009 a portion of non performing advances was transferred to CIRC and there was no need to maintain provision these items. Moreover huge amount was reversed against the current charge for provision. Due to these factors the provision against non performing loans decreased in 2010. Non mark income also increased by 12% and 20% in the years 2008 and 2009 respectively. The reasons for this increase are increase in the income of Fees Non mark income also increased by and 15.5% in the years 2010 and 2009 respectively. The reasons for this increase are increase in the income of Fees and Commissions which rose to 135.7% in the year 2010 in the year 2009. similarly Dividend income also rose up to 63.7% in the year 2009 and in the year 2010. In this regard Dividend income is the main catalyst in increasing the non mark up Govt college of Mgt sciences ThanaPage 75
income. Actually Dividend income is that income which bank earns on the investments. On the other hand Exchange income firstly increased by 4% in the year 2008 and then decreased by 14% in the year 2009. On the other hand Exchange income firstly increased by 4% in the year 2008 and then decreased by 14% in the year 2009. Major factor affecting the exchange income was revaluation of placements with foreign branches. It was positive in 2008 but negative in 2009 causing the income to decrease by 14%. Other income is also on the increasing path, though decreasing marginally in year 2009 as compared to year 2008, so non mark up income as a whole contributed significantly in the built up of total income. But broadly speaking this increase in total mark up can be linked with the constantly decreased mark up expenses that resulted in consistent increased gross profits.In the non mark up expenses, portion administrative expenses for the bank are increasing. Income statement shows an increment of 7% in the year 2010 and the year 2009. Actually bank is becoming considerate towards its human resource, day by day. So, its Administrative expenses are increasing. Other charges oscillated by decreasing 87% in the year 2010 and then again increasing by in the year 2009. At the end Net profit margin increased by 128%in the year 2010 in the year 2009; it shows luminous increase.
6.5
TAXATION
The tax provisions for, , 2009,2010, and have been made on estimated taxable income after charging provisions against non-performing advances for which certificates from SBP as required by the taxation authorities, are yet to be finalized.
6.6
RATIO ANALYSIS
Ratio can be defined as a quantitative relation between two magnitudes of the same kind.
6.6.1. FINANCIAL RATIOS

A financial ratio is an index that relates two accounting numbers and is obtained by dividing one number by the other. One may ponder that why there is a need to mingle with these ratios and not take the actual figures straightforwardly. Among various reasons one cogent reason
The Bank of Khyber
Internship report
can be put forward that ratios help in comparison. When ratio analysts are to compare the internal performance of the organization in relation to time, only ratios are the viable option for them. Along with it, comparison with the other competitors in the same industry can only be carried out with the help of financial ratios. The number of financial ratios that might be created is virtually limitless, but there are certain basic ratios that are frequently used, these ratios can be placed into six classes: liquidity ratios, asset turnover ratios, leverage ratios, coverage ratios, profitability ratios, and market value ratios.
6.6.1.1 LIQUIDITY RATIOS

Liquidity ratios measure the short-term solvency of a firm. These ratios are of special interest to short term creditors. Ratios measure a firms ability to
meet short term obligations.
I. CURRENT RATIO
Current ratio measures the number of times a companys current assets cover its current liabilities. Current Assets Current Ratio = Current Liabilites The higher the ratio, the greater is the companys ability to meet its short term obligations as they come due. Current ratio is calculated by dividing current assets by current liabilities. Table 6.6 Current Ratio Rs. (Million)
2009 Current Asset Current Lab Current Ratio
35,5184,19 53,770,36 6.60
2010
472,7250,3 40,1567,75 1.17
Graph:6.1 0100090000032a0200000200a20100000000a201000026060f003a03574d464301000000 0000010009d40000000001000000180300000000000018030000010000006c0000000000 000000000000070000000f0000000000000000000000202900008214000020454d460000 01001803000012000000020000000000000000000000000000008004000060030000400 Govt college of Mgt sciences ThanaPage 77
Current ratio of Bok for the last two years shows a fluctuating trend. In the year 2009 it was 6.60 but then it decreased to 1.17 in the year 2010 mainly due to an increase in current liabilities of the bank. BOK balance sheet shows that current Asset (remunerative) increased significantly in year 2010 and then again increased in year 2009.But the liabilities is decreased in year 2010.agiainst in year 2009. So the current Ratio is decreased 2010 against in the year 2009. It the current ratio is some what above the median ratio for the industry 2.1. the current ratio, the greater ability of the firm to pay its bill. Higher
A)
ASSET TURNOVER RATIOS
Asset turnover ratios, also known as efficiency, or activity ratios, are designed to measure how effectively a company manages its assets. To measure this
The Bank of Khyber
Internship report
efficiency, the following ratios are used:
i)
TOTAL ASSETS TURNOVER RATIO
This shows revenues generated per rupee investment in total assets. This ratio is calculated by dividing total revues/sales by total assets. Revenues / Sales Assets turnover ratio = Total assets Assets turnover ratio of BOK summarized below Table
Table:6.7 Total Asset Turnover Ratio

2009 Revenue/sale Total Asset Asset turover Ratio
3,390,014 38,810,570 0.087
Rs. (Million)
2010
4,207,155 50,794,303 0.082
Graph 6.2 0100090000032a0200000200a20100000000a201000026060f003a03574d464301000000 0000010009d40000000001000000180300000000000018030000010000006c000000000 0000000000000070000000f0000000000000000000000202900008214000020454d46000 00100180300001200000002000000000000000000000000000000800400006003000040 010000f000000000000000000000000000000000e2040080a90300160000000c00000018 0000000a00000010000000000000000000000009000000100000007b010000bd0000002 50000000c0000000e000080250000000c0000000e000080120000000c000000010000005 20000007001000001000000f1ffffff00000000000000000000000090010000000000a3044 0002241007200690061006c0000000000000000000000000000000000000000000000000 000000000000000000000000000000000000000000000000000000000000000001100b0 b311000c00000014b7110094b411005251603214b711000cb411000c0000007cb51100f8 b611002451603214b711000cb411002000000049642f310cb4110014b7110020000000ff ffffff1c16d800d0642f3102000200ffff0180ffff01800fff0180ffffffff000001000008000000 08000098d0120001000000000000006000000001000000332e9001a300020b060402020 2020204872a0020000000800800000000000000ff0100000000000041007200690061006 c0000000000000078b311005d00917c44c3110020e9907c6000917c40b411009c3827310 6000000010000007cb411007cb41100e878253106000000a4b411001c16d80064760008 Govt college of Mgt sciences ThanaPage 79
The asset turn over of BOK has shown a decreasing trend over the period of last years. If we look at the figures of total assets they are increasing constantly, while on the other side Revenues are also increased in the year 2010, and then went down in the year 2009. If we observe the Asset turn over is not static almost in every years it is almost Dynamic, because both Total assets and Revenues are increasing. But in the year 2010 this ratio has decreased to 0.082, the reason behind this decrease is that Total assets are increasing but on the other hand Revenues are decreasing. Actually Asset turn over ratio shows us the relative efficiency of total assets to generate sales
6.6.1.2
LEVERAGE RATIOS
Financial leverage is the extent to which a company is financed
with debt. The amount of debt a company uses has both positive and negative effects. The more the debt, the more likely it is that the company will have trouble in meeting its obligations. Thus the more debt, the higher is the probability of financial distress and even bankruptcy. On the other hand, debt is a major source of financing and provides significant tax advantage. Ratio that show the extent to
which the firm is finance
iii). DEBT RATIO

Debt ratio shows the fraction of the companys assets that is financed by debt. The ratio is derived by dividing a firms total debt by its total assets:
The Bank of Khyber

Total debt Debt ratio = Total assets
Internship report
Debt Ratio summarized below the Given Table Table: 6.8 Debt Ratio
2009 Total debt Total Asset Debt Ratio
32,848,273 38,810,570 0.84
Rs. (Million)
2010
41,393,930 50,794,303 0.81
Graph:6.3 0100090000032a0200000200a20100000000a201000026060f003a03574d464301000000 0000010009d40000000001000000180300000000000018030000010000006c0000000000 000000000000070000000f0000000000000000000000202900008214000020454d460000 01001803000012000000020000000000000000000000000000008004000060030000400 10000f000000000000000000000000000000000e2040080a90300160000000c000000180 000000a00000010000000000000000000000009000000100000007b010000bd000000250 000000c0000000e000080250000000c0000000e000080120000000c00000001000000520 000007001000001000000f1ffffff00000000000000000000000090010000000000a304400 02241007200690061006c000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000000000001100b0b3 11000c00000014b7110094b411005251603214b711000cb411000c0000007cb51100f8b6 11002451603214b711000cb411002000000049642f310cb4110014b7110020000000ffffff ff1c16d800d0642f3102000200ffff0180ffff01800fff0180ffffffff000001000008000000080 00098d0120001000000000000006000000001000000332e9001a300020b0604020202020 204872a0020000000800800000000000000ff0100000000000041007200690061006c000 0000000000078b311005d00917c44c3110020e9907c6000917c40b411009c38273106000 000010000007cb411007cb41100e878253106000000a4b411001c16d8006476000800000 000250000000c00000001000000250000000c00000001000000250000000c00000001000 000180000000c0000000000000254000000540000000000000000000000070000000f000 00001000000e438de41e438de41000000000d000000010000004c0000000400000000000 000000000007b010000bd00000050000000200007000800000046000000280000001c000 0004744494302000000ffffffffffffffff7c010000bd00000000000000460000001400000008 0000004744494303000000250000000c0000000e000080250000000c0000000e0000800e 000000140000000000000010000000140000000400000003010800050000000b0200000 000050000000c02bd007b01040000002e0118001c000000fb021000070000000000bc020 00000000102022253797374656d00000000000000000000000000000000000000000000 00000000040000002d010000040000002d01000004000000020101001c000000fb02f1ff0 000000000009001000000a304400022417269616c0000000000000000000000000000000 00000000000000000000000040000002d010100040000002d010100040000002d010100 050000000902000000020d000000320a0d00000001000400000000007b01bd00209f0800 040000002d010000040000002d010000030000000000
The Bank of Khyber
Internship report
This ratio highlights the relative importance of debt financing to the firm by showing the percentage of the firms assets that is supported by debt financing. Here in our case of BOK this ratio is not constant for the last two years, i.e. almost 84%. 2009 of the firm assets are financed with debt. Both the items i.e. total debt and total assets contributing to this ratio are increasing all the time. In other words we can say that the claim of shareholders over the bank assets is only16%.The higher the debt-to-total-assets ratio, the greater the financial risk, the lower this ratio, the lower the financial risk. The Median debt-to-equity ratio is .80,
6.6.1.3
COVERAGE RATIOS
Coverage ratios show the number of times a company can cover or meet a particular financial charge or obligation. One of the most commonly used coverage ratios is the interest coverage or times interest earned ratio.Ratio that relate the financial charges of a
firm to its ability to service, or cover, them.
iv) TIME INTEREST COVERAGE RATIO:

It measures the number of times the income is available to pay interest charges covers the companys interest and thus avoids bankruptcy. Earning before interest and taxes Interest expense Times interest earned ratio = Interest coverage ratio of BOK summarized below Table Table 6.9
EBIT Intrest expense Intrest earned Ratio
Time Interest Earned Rs. (Million)

2009
(798,770) 2,390,388 2.75
2010
713,141 2,925,066 0.243
Graph 6.4 0100090000032a0200000200a20100000000a201000026060f003a03574d464301000000 0000010009d40000000001000000180300000000000018030000010000006c0000000000 Govt college of Mgt sciences ThanaPage 83
This ratio serves as one measure of the firms ability to meet interest payments and thus avoid bankruptcy. In general, the higher the ratio, the greater the
The Bank of Khyber
Internship report
likelihood that the company could cover its interest payments without difficulty. The interest coverage ratio of BOK has shown an UNDER the year 2010. In the year 2009, the ratio is 2.75 which show that the income in 2009 covers 2.75 times the interest expense.
6.6.1.4 PROFIT MARGINS RATIOS

These are now discussed in detail.
v).
GROSS PROFIT MARGIN

Gross profit is the difference between revenues and cost of goods or
services sold. Gross profit is used to pay operating expenses, financing costs, and taxes, profit. It is calculated as follows: Sales - Cost of sales Sales Gross profit margin = x100 = x100 The gross profit margin of BOK summarized below Table Table 6.10 Gross Profit Margin Rs. (Million)
2009 Gross Profit Sale/revenue Gross Profit Margin
999,626 3,390,014 0.29
2010
1,282,089 4,207,155 0.30
Graph 6.5 0100090000032a0200000200a20100000000a201000026060f003a03574d464301000000 0000010009d40000000001000000180300000000000018030000010000006c0000000000 000000000000070000000f0000000000000000000000202900008214000020454d460000 01001803000012000000020000000000000000000000000000008004000060030000400 10000f000000000000000000000000000000000e2040080a90300160000000c000000180 000000a00000010000000000000000000000009000000100000007b010000bd000000250 000000c0000000e000080250000000c0000000e000080120000000c00000001000000520 000007001000001000000f1ffffff00000000000000000000000090010000000000a304400 02241007200690061006c000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000000000001100b0b3 Govt college of Mgt sciences ThanaPage 85
It is obvious from the figures of Gross profit margin that the trend is constantly increasing the last years 2009. The reason for this increasing trend is that the gross profit of the bank is increasing, and this increase in gross profits is due to the remarkable decrease in mark up expenses. The reason for this decrease in mark up expenses may be the management efficiency in controlling these expenses.
vi) NET PROFIT MARGIN

The net profit margin measures the profit that is available from each rupee of sales after all expenses have been paid, including cost of sales, selling, general, and administrative expenses; depreciation; interest; and taxes. The ratio is calculated as follows:
Net profit after taxe s 100 Sales Net profit margin =
The net profit margin of BOK summarized in the below Table. Table 6.11 Net Profit Margin Ratio Rs. (Million)
The Bank of Khyber

2009 Net income Revenue/sale NPM Ratio
(637,183) 3,390,014
Internship report
2010
563,486 4,207,155 0.13
0.18
Graph:6.6 0100090000032a0200000200a20100000000a201000026060f003a03574d464301000000 0000010009d40000000001000000180300000000000018030000010000006c000000000 0000000000000070000000f0000000000000000000000202900008214000020454d46000 00100180300001200000002000000000000000000000000000000800400006003000040 010000f000000000000000000000000000000000e2040080a90300160000000c00000018 0000000a00000010000000000000000000000009000000100000007b010000bd0000002 50000000c0000000e000080250000000c0000000e000080120000000c000000010000005 20000007001000001000000f1ffffff00000000000000000000000090010000000000a3044 0002241007200690061006c0000000000000000000000000000000000000000000000000 000000000000000000000000000000000000000000000000000000000000000001100b0 b311000c00000014b7110094b411005251603214b711000cb411000c0000007cb51100f8 b611002451603214b711000cb411002000000049642f310cb4110014b7110020000000ff ffffff1c16d800d0642f3102000200ffff0180ffff01800fff0180ffffffff000001000008000000 08000098d0120001000000000000006000000001000000332e9001a300020b060402020 2020204872a0020000000800800000000000000ff0100000000000041007200690061006 c0000000000000078b311005d00917c44c3110020e9907c6000917c40b411009c3827310 6000000010000007cb411007cb41100e878253106000000a4b411001c16d80064760008 00000000250000000c00000001000000250000000c00000001000000250000000c000000 01000000180000000c000000000000025400000054000000000000000000000007000000 0f00000001000000e438de41e438de41000000000d000000010000004c00000004000000 00000000000000007b010000bd000000500000002000070008000000460000002800000 01c0000004744494302000000ffffffffffffffff7c010000bd00000000000000460000001400 0000080000004744494303000000250000000c0000000e000080250000000c0000000e00 00800e000000140000000000000010000000140000000400000003010800050000000b0 200000000050000000c02bd007b01040000002e0118001c000000fb02100007000000000 0bc02000000000102022253797374656d00000000000000000000000000000000000000 00000000000000040000002d010000040000002d01000004000000020101001c000000fb 02f1ff0000000000009001000000a304400022417269616c0000000000000000000000000 00000000000000000000000000000040000002d010100040000002d010100040000002d 010100050000000902000000020d000000320a0d00000001000400000000007b01bd002 09f0800040000002d010000040000002d010000030000000000
Like gross profit margin, net profit margin of BOK has also improved over time. However, the percentage increase in gross margin is more than the percentage increase in net profit margin this means that though the selling price has increased or cost of sales has decreased, the other expenses of the banks like operating, general administrative or selling expenses have shown a slight increase.
6.6.1.5 RETURN RATIOS

Unlike profit margins, return ratios express profitability in relation to various measures of the investment in the company. Their potential usefulness is inherently limited as they are based on book values. Two ratios are commonly used: return on assets and the return on equity.
vii)
RETURN ON ASSETS
Return on assets, also called return on investment (ROI), measures profitability per rupee of investment in assets. The ratio is calculated as under:
Net profit after taxe s 100 Total Assets Return on investment =
To analyze more clearly a firms return on investment, Du Pont Company used a different approach to ratio analysis in 1919 under which when we multiply the net profit margin of the firm by the total asset turnover, we obtain the return on investment, or earning power on total assets. Earning power = ROI = Sales profitability x x Assets efficiency
Net profit margin
Total asset turnover
As net profit margin ignores the utilization of assts, while the asset turnover ratio ignores profitability on sales, the return on investment ratio resolves these shortcomings. The table shows the ROI of BOK.
The Bank of Khyber
Internship report
Table 6.12 Return on Investment Rs. (million) 2009 2010

Net income Total Asset ROI
(637,183) 38,810,570 563,486 50,794,303
0.016%
0.011%
Graph 6.7 0100090000032a0200000200a20100000000a201000026060f003a03574d464301000000 0000010009d40000000001000000180300000000000018030000010000006c0000000000 000000000000070000000f0000000000000000000000202900008214000020454d460000 01001803000012000000020000000000000000000000000000008004000060030000400 10000f000000000000000000000000000000000e2040080a90300160000000c000000180 000000a00000010000000000000000000000009000000100000007b010000bd000000250 000000c0000000e000080250000000c0000000e000080120000000c00000001000000520 000007001000001000000f1ffffff00000000000000000000000090010000000000a304400 02241007200690061006c000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000000000001100b0b3 11000c00000014b7110094b411005251603214b711000cb411000c0000007cb51100f8b6 11002451603214b711000cb411002000000049642f310cb4110014b7110020000000ffffff ff1c16d800d0642f3102000200ffff0180ffff01800fff0180ffffffff000001000008000000080 00098d0120001000000000000006000000001000000332e9001a300020b0604020202020 204872a0020000000800800000000000000ff0100000000000041007200690061006c000 0000000000078b311005d00917c44c3110020e9907c6000917c40b411009c38273106000 000010000007cb411007cb41100e878253106000000a4b411001c16d8006476000800000 000250000000c00000001000000250000000c00000001000000250000000c00000001000 000180000000c0000000000000254000000540000000000000000000000070000000f000 00001000000e438de41e438de41000000000d000000010000004c0000000400000000000 000000000007b010000bd00000050000000200007000800000046000000280000001c000 0004744494302000000ffffffffffffffff7c010000bd00000000000000460000001400000008 0000004744494303000000250000000c0000000e000080250000000c0000000e0000800e 000000140000000000000010000000140000000400000003010800050000000b0200000 000050000000c02bd007b01040000002e0118001c000000fb021000070000000000bc020 00000000102022253797374656d00000000000000000000000000000000000000000000 00000000040000002d010000040000002d01000004000000020101001c000000fb02f1ff0 000000000009001000000a304400022417269616c0000000000000000000000000000000 00000000000000000000000040000002d010100040000002d010100040000002d010100 050000000902000000020d000000320a0d00000001000400000000007b01bd00209f0800 040000002d010000040000002d010000030000000000 The Return on Investment figures of BOK shows a decrease over the last years. The Govt college of Mgt sciences ThanaPage 89
reason for this decrease is due to decrease in the net profits of the bank. Although totalassets are increasing. but the proportionate increase in the net profits are not morethanthe total assets. The positive change in the ROI figures shows the outstanding performance of the bank, this return is more More than year 2009. Is comapared in year 2010.
viii) RETURN ON EQUITY

It is another measure of overall performance of a company. Return on equity (ROE) shows the companys residual profit as a proportion of the book value of common stockholders equity.
Net profit after taxe s 100 Common stock holders' equity Return on equity =
To analyze return on equity fully, the Du Pont approach is the best one which breaks the above formula into various components:
ROE = Net profit margin Total assets turnover Equity multiplier Net Sales Total assets Total assets Shareholde rs' equity
Net profit Net profit = S.H. Equity Net sales
The table summarizes ROE of BOK for Two years. Table 6.13 Return on Equity
2009 Net income Equity ROE
(637,183)
Rs. (million)
2010
563,486
224,000
3,224,000
2.8
0.17
Graph 6.8 0100090000032a0200000200a20100000000a201000026060f003a03574d464301000000 0000010009d40000000001000000180300000000000018030000010000006c0000000000 000000000000070000000f0000000000000000000000202900008214000020454d460000 01001803000012000000020000000000000000000000000000008004000060030000400 10000f000000000000000000000000000000000e2040080a90300160000000c000000180 000000a00000010000000000000000000000009000000100000007b010000bd000000250 000000c0000000e000080250000000c0000000e000080120000000c00000001000000520 000007001000001000000f1ffffff00000000000000000000000090010000000000a304400 02241007200690061006c000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000000000001100b0b3
The Bank of Khyber
Internship report
The ROE of BOK is also showing an increasing trend over the year 2010 This increase is again due to the increasing Net Income of the bank. The Equity of the bank is also increasing with the passage of time but the change occurring in the Net Income figures is more than that of Equity. This increase in the ROE is the evidence of good performance.
ix) . ADVANCES TO DEPOSIT RATIO

Advances are the prime source of earning for the bank. So it is of great significance that which portion of the deposits of the bank is converted into finances. For this purpose advances to deposits ratio are used. Advances to Deposit ratio = Advances x 100 Deposits
Table 6.14 Advances to Deposit Rs. (Million) 2009 Advance Deposit ADR
11,835,962 26,285,794
2010
18,238,333 36,981,351
0.45
0.49
Graph 6.9 0100090000032a0200000200a20100000000a201000026060f003a03574d464301000000 0000010009d40000000001000000180300000000000018030000010000006c0000000000 000000000000070000000f0000000000000000000000202900008214000020454d460000 01001803000012000000020000000000000000000000000000008004000060030000400 10000f000000000000000000000000000000000e2040080a90300160000000c000000180 000000a00000010000000000000000000000009000000100000007b010000bd000000250 000000c0000000e000080250000000c0000000e000080120000000c00000001000000520 000007001000001000000f1ffffff00000000000000000000000090010000000000a304400 02241007200690061006c000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000000000001100b0b3 11000c00000014b7110094b411005251603214b711000cb411000c0000007cb51100f8b6 11002451603214b711000cb411002000000049642f310cb4110014b7110020000000ffffff ff1c16d800d0642f3102000200ffff0180ffff01800fff0180ffffffff000001000008000000080 00098d0120001000000000000006000000001000000332e9001a300020b0604020202020 204872a0020000000800800000000000000ff0100000000000041007200690061006c000 0000000000078b311005d00917c44c3110020e9907c6000917c40b411009c38273106000 000010000007cb411007cb41100e878253106000000a4b411001c16d8006476000800000 000250000000c00000001000000250000000c00000001000000250000000c00000001000 000180000000c0000000000000254000000540000000000000000000000070000000f000 00001000000e438de41e438de41000000000d000000010000004c0000000400000000000 000000000007b010000bd00000050000000200007000800000046000000280000001c000 0004744494302000000ffffffffffffffff7c010000bd00000000000000460000001400000008 0000004744494303000000250000000c0000000e000080250000000c0000000e0000800e 000000140000000000000010000000140000000400000003010800050000000b0200000 000050000000c02bd007b01040000002e0118001c000000fb021000070000000000bc020 00000000102022253797374656d00000000000000000000000000000000000000000000 00000000040000002d010000040000002d01000004000000020101001c000000fb02f1ff0 000000000009001000000a304400022417269616c0000000000000000000000000000000 00000000000000000000000040000002d010100040000002d010100040000002d010100 050000000902000000020d000000320a0d00000001000400000000007b01bd00209f0800 040000002d010000040000002d010000030000000000 Advances to Deposit ratio of BOK shows a mixed trend over the past years span. This
The Bank of Khyber
Internship report
fluctuation is caused by high liquidity coupled with recession in the market.
x) YIELD ON NET ADVANCES RATIO

As advances are the major contributor to the profitability of the bank so it is important to know how much it is earning on net advances. Yield on net advances calculates the return on its finances portfolio. Yield on Net Advances= Revenue x 100 Advances
Table 6.15
Yield on Net Advances Rs. (Million)

2009 2010
4,207,155
Revenue Advance ROAd
3,390,014
11,835,962
18,238,333
0.28%
2.30%
Graph 6.10 0100090000032a0200000200a20100000000a201000026060f003a03574d464301000000 0000010009d40000000001000000180300000000000018030000010000006c0000000000 000000000000070000000f0000000000000000000000202900008214000020454d460000 01001803000012000000020000000000000000000000000000008004000060030000400 10000f000000000000000000000000000000000e2040080a90300160000000c000000180 000000a00000010000000000000000000000009000000100000007b010000bd000000250 000000c0000000e000080250000000c0000000e000080120000000c00000001000000520 000007001000001000000f1ffffff00000000000000000000000090010000000000a304400 02241007200690061006c000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000000000001100b0b3 11000c00000014b7110094b411005251603214b711000cb411000c0000007cb51100f8b6 Govt college of Mgt sciences ThanaPage 93
On the whole yield on net advances is decreasing and the prime responsibility comes on the bad investment climate and recessionary leanings in the market. In this scenario as interest rates are dwindling bank is earning less on advances, compared with other heads. (Next years financial statements are going to depict more dismal state on this account as banks are searching persons to acquire advances from them-even with very negligible interest rates).
xi) TOTAL EXPENDITURE TO TOTAL INCOME RATIO

Managers are interested in finding out how much they have to forgo in earning the total income. This ratio is obtained by dividing total expenses (operating expenses, other charges and share of loss of joint venture) to total income (profit available for appropriation) Total expenditure to total income= Total expenses Profit available for appropriation x 100
The Bank of Khyber

2009 Total expenses Total income To-exp-to-income
2,390,388 (262,193)
Internship report
Table 6.16Total Exp to Total income Rs. (Million)

2010
2,925,066 1,604,855
9.1%
1.82%
Graph 6.11 0100090000032a0200000200a20100000000a201000026060f003a03574d464301000000 0000010009d40000000001000000180300000000000018030000010000006c0000000000 000000000000070000000f0000000000000000000000202900008214000020454d460000 01001803000012000000020000000000000000000000000000008004000060030000400 10000f000000000000000000000000000000000e2040080a90300160000000c000000180 000000a00000010000000000000000000000009000000100000007b010000bd000000250 000000c0000000e000080250000000c0000000e000080120000000c00000001000000520 000007001000001000000f1ffffff00000000000000000000000090010000000000a304400 02241007200690061006c000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000000000001100b0b3 11000c00000014b7110094b411005251603214b711000cb411000c0000007cb51100f8b6 11002451603214b711000cb411002000000049642f310cb4110014b7110020000000ffffff ff1c16d800d0642f3102000200ffff0180ffff01800fff0180ffffffff000001000008000000080 00098d0120001000000000000006000000001000000332e9001a300020b0604020202020 204872a0020000000800800000000000000ff0100000000000041007200690061006c000 0000000000078b311005d00917c44c3110020e9907c6000917c40b411009c38273106000 000010000007cb411007cb41100e878253106000000a4b411001c16d8006476000800000 000250000000c00000001000000250000000c00000001000000250000000c00000001000 000180000000c0000000000000254000000540000000000000000000000070000000f000 00001000000e438de41e438de41000000000d000000010000004c0000000400000000000 000000000007b010000bd00000050000000200007000800000046000000280000001c000 0004744494302000000ffffffffffffffff7c010000bd00000000000000460000001400000008 0000004744494303000000250000000c0000000e000080250000000c0000000e0000800e 000000140000000000000010000000140000000400000003010800050000000b0200000 000050000000c02bd007b01040000002e0118001c000000fb021000070000000000bc020 00000000102022253797374656d00000000000000000000000000000000000000000000 00000000040000002d010000040000002d01000004000000020101001c000000fb02f1ff0 000000000009001000000a304400022417269616c0000000000000000000000000000000 00000000000000000000000040000002d010100040000002d010100040000002d010100 050000000902000000020d000000320a0d00000001000400000000007b01bd00209f0800 040000002d010000040000002d010000030000000000
The total expenses to net income ratio have been contained by bank remarkably over a period of past years. This is primarily due to increase in net income and controlling of Govt college of Mgt sciences ThanaPage 95
expenses (operating expenses, other charges and share of loss of joint venture). 6.7 Position of working Capital Working capital = Current Asset Current Labilities Table:6.17 Position of working capital
2009 Current Asset Current Lab Working Capital
35,5184,19 53,770,36
2010
472,7250,3 40,1567,75
That the current asset is more than the current labilities at the current year.it shows the financial position of bank is good position is current to compared the prevoius year.
6.8 Deposit Time Ratio Deposit Time Ratio Deposit Divided to capital Table: 6.18 Deposit Time Ratio
2009 Deposit Capital Deposit Time Ratio
26,285,794 5,004,001
2010 36,981,351
5,004,001
5.25
7.39
As deposits are increasing and advances are also decreasing. Increase in deposits is due to the different investment schemes offered by the bank. And Bank is also providing more advances to its customers. The ratio of advances to total deposits are increased which is positive.
6.9 CASH TO DEPOSIT

Cash to Deposit is Cash divided to deposit
The Bank of Khyber

Table: 6.19 Cash to Deposit
2009 Cash Deposit Cash to- Deposit
1,542,102 26,285,794
Internship report
Rs(Million)
2010
5,079,720
36,981,351
Chapter 7 ORGANIZATION ANALYSIS ON MATRIX AND SWOT
7.1
IFE MATRIX OF BOK
Table No:6.17 Internal Factor Evaluation Matrix for khyber bank of Pakistan Weight Key External factors Weight Rating Score Strength 1. Western union facility 2. ATM finder 3. Governments bank 4. Maximum range of customers 5. Online banking 6. Employees loyalty 7. Wide area of services 8. Strong financial position 9. Conducive environment 10. Govt. support and encouragement 11. Fastest growing financial institution 12. Young and energetic workforce Weaknesses 1. Lack of communication between employees 2. Weak implementation of rules 3. Public dealing is not very effective 4. Staff shortage 5. Inexperienced workforce 6. Poor advertisement and network 7. Over work load on employees 8. Employees are not very much motivated Total 0.09 0.08 0.09 0.04 0.06 0.04 0.05 0.03 0.02 0.04 0.06 0.04 4 3 3 2 2 2 1 3 2 3 3 2 0.36 0.24 0.27 0.08 0.12 0.08 0.05 0.09 0.04 0.12 0.18 0.08
0.05 0.05 0.03 0.05 0.05 0.04 0.06 0.03 1.00
2 2 1 2 2 1 1 2
0.10 0.10 0.03 0.10 0.10 0.04 0.06 0.06 2.30
The Bank of Khyber

7.2 EFE MATRIX OF BOK
Internship report
Table no:6.17External Factor Evaluation Matrix for Bank of Khyber of Pakistan Weighted Key External factors Weight Rating Score Opportunities Growing banking system BOK can avail the government projects Increase in economic activities Unemployment is increasing Sponsor the IT based projects Rapidly Growing Economy Mega Projects Financing Huge Demand for Consumer Financing 9. Spending Practices of Masses Threats 1. 2. 3. 4. 5. 6. 7. 8. 9. Total Development in banking The whole structure changes to online Increase in number of banks Increased Interest Rates Uncertainty of Economy High Rate of Inflation Trend of Mergers Privatization of Banks Risk of Defaults 1. 2. 3. 4. 5. 6. 7. 8. 0.08 0.07 0.08 0.05 0.05 0.08 0.07 0.08 0.06 3 2 1 2 2 3 3 3 2 0.24 0.14 0.08 0.10 0.10 0.24 0.21 0.24 0.12
0.06 0.05 0.06 0.03 0.07 0.02 0.03 0.04 0.02 1.00
3 4 3 3 3 2 1 2 1
0.18 0.20 0.18 0.09 0.21 0.04 0.03 0.08 0.02 2.46
7.3 SWOT ANALYSIS

SWOT is an acronym for an organizations Strengths, Weaknesses, Opportunities and Threats. SWOT analyses consist of sizing up a firms internal strengths and weaknesses and its external opportunities and threats. It is a tool to get a quick overview of firms strategic situation. In the following lines are the SWOT analyses of Bank of Khyber.
a) Strength
i.. Has market leadership in providing products and services to the
customers over the year. ii. Have more branches and therefore accessible to more potential
customers than any other Bank. iii. Have product innovation skills and resources. and has several times come out of competition successful. v. It has modern technology and resources of Cater to its customers. vi. Staff is young and rich in experience and working skills. vii. Bank of Khyber has to good will of the people and it is also an asset to it. viii. Has access to all part of the world, thus also providing services to Pakistanis outside the country. ix. Offer attractive schemes and more saving for customers from time to time. x. Banks management has the motivation to make it best bank of the country. b) Weakness i.Marketing skills of the bank are good but they have little presence at different media. ii.The lower level management lacks clear direction and is not having the managerial depth. iii.Employees are lacking motivation. iv.They also fear of downsizing. v.Bank is not limits and thus reducing the efficiency. vi.Problems of internal unionism from employees. vii.Maximum number of branches, affecting the maintenance of consistency and some working atmosphere at everywhere. viii.Branchs internal environment do not presents smart image of the bank in most of cases. ix.Communication gap between different levels of management.
iv. Bank of Khyber has the ability to cope with pressure of competition
The Bank of Khyber

c) Opportunities i. ii. iii. iv.
Internship report
Bank should take interest in the new market segments like I.T., Extending banking hours and providing more branches facilities to Increasing credit facilities to lower income groups, thus reducing the
business, software business etc. customers. risk of loss and also improving the image of the bank. If new schemes are introduced for the overseas Pakistanis can get the business of remittances more than any other bank or Hundi business. v. A new service to its product line.
d) Threats i.Increasing number of private/foreign banks in the country. ii.Global technological advancement. iii.Politic, economical situation of the country. iv.Reduction in the business activities in the country. v.Reducing the rates of savings in different segments of people. vi.Deteriorating confidence of people in bank uncertainties of the investors. vii.Provisions of better services by private bank. For SWOT analysis we can conclude that the management of the bank should adopt systematic planning for the bank growth, talking with them all management levels of the banks, discover new segments of the customers, offering new schemes for its customers. Similarly Bank of Khyber has more customers as compared to the other banks; if they give proper attention to every customer and their needs then it will become again one of the leading and comprehensive banks
7.3
Figure No. Strength
SWOT AND TOWS MATRIX FOR BOK

A SWOT Matrix for BANK OF KHYBER of Pakistan Weaknesses
1. 2. 3. 4. 5. 6. 7. 8. 9. Western union facility ATM finder Governments bank Maximum range of customers Online banking Employees loyalty: Wide area of services: Strong financial position Govt. support and encouragement 10.Fastest growing financial institution 11.Young and energetic workforce 1. Employees are totally irresponsible and lack of complete knowledge of banking system. 2. Lack of computer literates. 3. No job satisfaction. 4. Lack of respect. 5. Avoiding rules and regulations.
Opportunities 1. Growing banking system 2. BOK can avail the government projects 3. Increase in economic activities 4. Unemployment is increasing 5. Rapidly growing economy 6. Increase interest rates 7. Mega projects financing 8. Huge demand for consumer financing 9. Spending practices of masses Threats 1. Development in banking: 2. The whole structure changes to online: 3. Increase in number of banks: 4. Increased Interest Rates 5. Uncertainty of economy 6. High rate of Inflation 7. Trend of mergers 8. Privatization of banks 9. Risk of defaults
SO Strategies 1.BOK can decrease unemployment as it has a strong financial position. S8O4. 2. BOK can grow further by making all the branches online. S5O1. 3.BOK can finance mega projects. S10O7
WO Strategies 1. If employees are getting a proper training then this bank will b the leading in the country for ever. W1T1 2. If employees are provided with remunerations and job satisfaction then BOK can play a major role in decreasing the unemployment.
ST Strategies 1. It can make plans for the uncertainty of economy if in case it occurs. S8T5 2. It can decrease the risk of mergers and privatization. S9T7
WT Strategy 1. Strictly following the rules and regulation it can take over many organizations. W5T1
The Bank of Khyber Chapter 8
Internship report
8.1 CONCLUSIONS AND RECOMMENDATIONS

Essence of knowledge is the ability to use ones discerning faculties to interpret the environments, and generalize it for betterment. So it is of utmost importance in this connection that one of the fundamental qualities of successful managers is dexterity in appreciating the right thing, pinpointing what is lacking and suggesting for achievement of the desired. In internship report, findings and recommendations are the core of the matter, as these are our personal opinions regarding organization, a sort of novel work. These findings are what may be called as bonafide assertions that what is? And recommendations; what should be? Naturally the outside person observes some things which seem out of order, and so worthy to be given due attention. In fact participants of the organization are not apathetic towards deficiencies rather their intimate relation with problems makes them myopic. So an external is well placed to examine them and their organization alike. 1)These findings and recommendations have been written as are result of thorough analysis conducted. To put in writing these findings and recommendations possible objectivity has been considered. For an easy grasp, these recommendations are only for the corporate level. BOK is the leading commercial bank in Pakistan, with a seasoned management team dedicated for its development. However some suggestions seem imperative at corporate level .These recommendations/suggestions have been based on the SWOT analysis, financial analysis and general observation.
In the end of this report I am giving the recommendation in order to improve the efficiency of the Bank These recommendations are primarily based on the analysis. These recommendations, if Followed will have a positive effect on the profitability, and the role it plays in the development of Province.
These recommendations are as under:.
8.1.1 COST OF FUND SHOULD BE REDUCED

Cost of fund for BOK is high. This trend results in lowering the income for the bank. If BOK margin on advances increases its cost of fund will be reduced.
8.1.2 CONCERN ABOUT CUSTOMER

In Todays business environment where Total Quality Management (TQM) is the catchphrase, being indifferent towards customer needs is high-priced. Nevertheless customer care is a neglected area in the branches of NBP and customers complaints are received intermittently. They get lukewarm response as compared to the other private banks. The proactiveness of foreign banks and their concern for customer can be gauged from this, that if customers ask for cash, they are provided with even at 12 am(like Citibank).But contrary to this, customers at BOK branches are even pushed in rush days. Invariably customer should be the king. So it is of the essence that a serious consideration should be given to the customer care by BOK management. phase wise installation is feasible. Online banking should also be introduced to cope with better equipped competitors.
8.1.3 EMPLOYEE MOTIVATION AND MORALE

Employee motivation at BOK branches is lacking. Notwithstanding that it has become a recognized fact that devotion and motivation precede admiration and recognition. The main reason for this is the senior managements apathy towards employees. BOK should devise some kind of mechanism for motivating employees and making them committed towards the bank. Like appraising the employees and selecting from them for employee of the month or giving some pecuniary reward.
The Bank of Khyber
Internship report
8.1.4 Better Training Program

It has been noticed that the training program of BOK is not adequate. Special marketing training should be given to employees for motivating customers. The training program of bank should include scientific techniques to improve decision making and inter-personal as well as individual needs of an employee.
8.1.5 Enhance Customers Services

Constant improvements in customers services are needed in todays competitive Environment. Personalized banking should be introduced to attract more customers. Equal respect should be given to all the customers.
8.1.6 Automated Teller Machines (ATM)

The bank should provide a (ATM) facility to its customers at some branches. This facility will enable the customers to use the card facility, within the same branch where they have account. This facility is used in holidays and other than banking hours. Customers can get information and with draw their money with the help of this facility at any time.
8.1.7 Job Rotation

The employees of BOK are specialists in their fields but they need straightening in general banking. They generally confine to their own work and do not give sufficient consideration to other department. They must have some basic information of other departments; it is recommended that there must be proper job rotation.
8.1.8 Proper job Analysis

A detailed and systematic study of the job should be done to know the nature and characteristics of the people to be employed. This will help in identifying the training needs, evaluating the job and in appraising the performance of the employees.
8.1.9 Introduction Career Planning

As a matter of personnel policy, personnel department of BOK should prepare a career plan showing their future growth, potential, depending on the job performance and evaluation, which should be made known to the employees. In this regard the employees should be given opportunities to show their performance.
8.1.10 Better Working Condition

The working are is comparatively smaller as compared to the needs of the branch. As a result there is lesser working space provided to employees. They have to work from 8P.M and some time even longer time period. The congested places affect their efficiency at work. It is suggested that better working conditions should be provided for effective and efficient out-put.
8.1.11 Promotions and Publicity

BOK should advertise itself and introduce its services in detail through media to people. This is the best way to enhance its business like other successful banks. They should adopt strong strategies for promotion and publicity of their services they offer.
8.1.12 International Banking

Bok should expand its branches. They should expand their branches not only in Pakistan but also outside the country.
8.1.13 Use of Media

Bok is new organization in order to increase its customers and add to its publicity, it is recommended that the bank should advertise itself and introduce its services in detail
through media.
8.1.14 Latest Computer Equipment
Latest software should be installed in the bank so that the data processing speed of computers can be enhanced.
The Bank of Khyber

8.1.15 Proper Distribution of work
Internship report
In Bok the distribution of work needs further streamlining. Some employees have more work to do and are under stress while others are not fully occupied. The work should be distributed in such a manner that there should no undue load or burden on any one.
8.1.16 Friendlier Environment

Most friendly environment should be created because it will help to gain the interest of employees in work. Noise in the office should be reduced because it has unfavorable impact on the working environment. Separate place or section should be created for each separate task and more space should be provided. It would also be of greater help in establishment of friendly environment.
BIBLIOGRAPHY: 1National Bank of Pakistan NBP Annual Report 2009, National Institute of Banking and Finance. 2National Bank of Pakistan (2007). National Bank of Pakistan year book, National Institute of Banking and Finance. 3Koonts, Harold. (1997). Management 10th Edition New York Mc Graw Hill Inc. 4Meigs, Waller B. (1986) Financial Accounting 11th Edition New York, M.c Graw Hill Inc. 5Van Horne, James C. (1986). Fundamentals of Financial Management 6th Edition. Prentice ball international editions Englewood Cliffs New Jersey. USA.

Bank of Khyber Internship Report For The Year Ended 2010

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Bank of Khyber Internship Report For The Year Ended 2010

Uploaded by

Copyright:

Available Formats

The Bank of Khyber report

The Bank of Khyber

OBJECTIVES OF THE STUDY

LIMITATION OF THE STUDY

1.5.1 Primary Data

1.5.2 Secondary Data

The Bank of Khyber

1.6 INTERPRETATION OF THE WORLD BANK

1.7 BANKING SECTOR IN THE KPK

ROLE OF COMMERCIAL BANKS IN PAKISTAN

The Bank of Khyber

1.10 ROLE OF KHYBER BANK ON ECONOMIC GROWTH AND DEVELOMPENT

The Bank of Khyber

iii.Share Holders Equity

1.12 ECONOMIC REVIEW

The Bank of Khyber

1.13 Performance Review

The Bank of Khyber

1.14 HIERARCHY OF BOK

Govt college of Mgt sciences ThanaPage 13

Chapter 2 ORGANIZATIONAL BACKGROUND

The Bank of Khyber

DEFINITION AND CHARACTERIZATION OF BANK

FUNCTIONS OF A COMMERCIAL BANK

2.3.1 PRIMARY FUNCTIONS

2.4 Advances on BOK

The Bank of Khyber

iii.Execution of Standing Instructions

Govt college of Mgt sciences ThanaPage 17

iv.Foreign Exchange Business

v. Advice on Financial Matters

vi.Safe Custody of Valuable

The Bank of Khyber

Askari Commercial Bank Ltd.

Govt college of Mgt sciences ThanaPage 19

South and Central Asia, Africa and the Far East.

The Bank of Khyber

The Bank of Khyber

The Bank of Khyber

The Bank of Khyber

Atlas Bank Limited

Bank Al Habib Limited

xii. Faysal Bank

The Bank of Khyber

Habib Metropolitan Bank Pakistan

The Bank of Khyber

2.7 HISTORY OF ISLAMIC BANKING IN PAKISTAN

Teps for Islamization of banking and financial system of Pakistan

interest-free instrument of corporate financing named Participation Term

The Bank of Khyber

The Bank of Khyber

Govt college of Mgt sciences ThanaPage 35

INTEREST FREE BANKING IN PAKISTAN

Chapter 3 INTRODUCTION TO THE KHYBER BANK OF PAKISTAN

The Bank of Khyber

These are achieved by:

Procuring Low Cost Deposits

3.4.2 Advancing and Lending Money to Its Clients

Branches of BOK Province

The Bank of Khyber

MANAGEMENT AND ORGANIZATION OF BANK OF KHYBER OF PAKISTAN

ORGANIZATIONAL STRUCTURE OF BOK

Govt college of Mgt sciences ThanaPage 39