Internship Report On Bank of Punjab

The Bank of Punjab
Internship Report 1
Department Of Management Sciences
Internship Report on the Bank Of Punjab
SUBMITTED TO:
Imran Khan
SUBMITTED BY:
Kashif Ilyas ( 76 )
MBA
4th
(Afternoon)
The Bank of Punjab
Internship Report 2
The Bank of Punjab
Internship Report 3
Preface
In Holly Quran Allah says 'man Iinds nothing but Ior what he struggles ' Man is
always erroneous. Struggle is only thing a man can do. Endeavors are in our hands but
results are always in the hands oI great Lord.
Being a student oI M.B.A (Einance) the task oI this internship report on the Bank
oI Punjab was really a struggle demanding deed. The eIIort and struggle to my extent
which we could make I done it, But as said 'Results let`s see what comes Irom it.
Considering in mind the importance oI Services Sector plays a vital role in the
growth and development oI our country`s economy, I decided to choose the organization
(Bank OI Punjab) related to services sector.
Role oI banking sector in services industry is known to every one. So The Bank oI
Punjab is an organization which is Iinalized as my concerned organization because this is
mainly perIorming the lot oI services in all over the Pakistan.
As this was my Iirst ever practical experience. As I started the work in a state that
I am ponder how to start it but now when I am writing these lines by the 'Grace oI God
My Iinal report is Iinalized.
The little incidents which took place during the preparation oI this report are now
part oI my liIe memories.
The Bank of Punjab
Internship Report 4
Acknowledgement
First oI all a great thanks to Almighty Allah, Who enable me to
complete this task and then I am thankIul to my Respected Teachers
Especially our department Incharge (proI. Syed javed Iqbal Bukhari Sb.) Ior
providing such a Iriendly atmosphere and guideline during our two year stay
at the University not only Ior the Academic AIIairs but all other social and
Iuture prospective by sharing their remarkable experiences.
It was such a pleasant Experience to Work in THE BANK OE
PUNJAB I own my gratitude and thankIul to all those who helped me in
preparing this internship Report by sharing there best oI knowledge.
It is due to endless eIIorts oI my Iriends and Iellow members at THE
BANK OE PUNJAB who provided me every Iavor and the last but not the
least I am really very thankIul to my beloved parents who have always been
a source oI inspection Ior me.
The Bank of Punjab
Internship Report 5
Dedication
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My lhanks lo lhen vho have geneiously conliiluled hei
lheoielical and piaclical knovledge lo lhis iepoil include.
Wilhoul hei undeislanding and suppoil, conplelion of lhis
voik vould nol have possille. I hope people vill find lhis
iepoil useful and lhe suljecl nallei adds lo lheii knovledge.
The Bank of Punjab
Internship Report 6
Table Of Contents
Sr.No. Description Page No.
1 Executive Summary
2 Introduction of the Bank
3 Hierarchy of the Organization
4 Functions of The Bank
5 Marketing Mix
6
Swot Analysis
7 Pest Analysis
8 HR Activities
9 My Activities in the Bank
10 My Limitations in the Bank
11 Performance of The Bank
12 Financial Analysis & Supporting Annexure
13 Suggestions & Recommendations
14 Conclusion
The Bank of Punjab
Internship Report 7
Executive Summary:
I have done my internship at The Bank oI Punjab, Khanewal road branch Multan. There
are Iour departments in the branch, and I worked as an assistant in that branch. Eor the
Iirst two weeks I worked in deposit department under the supervision oI Mr. Arshad,
where I have to perIorm Iollowing tasks:
Entering inIormation in KYC (know your customer) Iorms.
Scanning and arranging specimen signature cards.
InIorm customer oI essential conditions under which the account will be
operated.
AIterwards I have learnt about vouchers, checking oI vouchers is essential to conIirm that
correct calculation has been done. Vouchers are properly bind sealed, and checking by
the manager. I have checked the Iollowing things:
The check should not be post-dated/anti-dated.
Amount in words and Iigures tallies.
Cash paid stamps (with dates) are duly aIIixed in case oI cash cheques and in
case oI clearing stamps is aIIixed.
Cutting/over writings are duly authenticated by the account holder, etc
Then another task Ior me was 'issuing oI cheques books. It is one oI the most interesting
works that I have learnt in the bank. Cheques books should be issued only aIter all the
Iormalities oI the account opening Iorms, which have been checked by the branch
manager.
Maintaining Dispatch register and Inward Mailing register was also included in duties
assigned to me. I also used to help diIIerent employees in their work.
My work timings were Irom 9am to 5pm, six days in a week.
The Bank of Punjab
Internship Report 8
Introduction Of The Bank
The Bank oI Punjab started Iunctioning with the inauguration oI its Iirst branch oI
7-Egerton Road, Lahore on November 15, 1989. The architect oI the bank Mr.
Nawaz ShariI then, the ChieI Minister oI Punjab, perIormed the inauguration.
In Pakistan, over long periods oI time the gap in saving and investment and
balance oI trade deIicit has posed serious threat to the target levels oI growth The
ailments related to the budgetary deIicit and public debt, both Ioreign and
domestic are in addition. Interestingly even such adverse circumstances growth oI
real sector during the preceding year registered a Iavorable change, which speaks
oI hidden potential and strength oI economy.
Eortunately, the banking sector oI the country has the well organized and properly
institutionalized system, which is the major vehicle not only Ior mobilization oI
resources to Iinance trade, agriculture, and industry but also Ior the eIIective
conduct oI monetary policy.
The emergence oI new bank on the national scene in the early 1990s has done two
important services to the nation.
The saving base oI the economy has eIIectively enlarged and hence the
investment opportunities have increased.
The services oI the banks in the Iact oI severe competition have improved
considerably so that now consumer are leIt with extensive choice to do or
undo their business relations with these banks keeping in view quality oI
their services.
The Bank oI Punjab is working as a scheduled commercial bank with its
network oI 241 branches at all major business centers in the country. The Bank
provides all types oI banking services such as Deposit in Local Currency,
The Bank of Punjab
Internship Report 9
Client Deposit in Eoreign Currency, Remittances, and Advances to Business,
Trade, Industry and Agriculture. The Bank oI Punjab has indeed entered a new
era oI science to the nation under experience and proIessional hands oI its
management. The Bank oI Punjab plays a vital role in the national economy
through mobilization oI hitherto untapped local resources, promoting savings
and providing Iunds Ior investments.
Attractive rates oI proIit on all types oI deposits, opening oI Eoreign Currency
Accounts and handling oI Eoreign Exchange business such as Imports, Exports
and Remittances, Einancing, Trade and Industry Ior working capital
requirements and money market operations are some Iacilities being provided
by the Bank. The lending policy oI Bank is not only cautious and constructive
but also based on principles oI prudent lending with maximum emphasis on
security. As agriculture is considered as backbone oI our economy the Bank oI
Punjab has introduced "Kissan Dost Agriculture Einance Scheme" to small
Iarmers.
The Bank oI Punjab has the privilege to discharge its responsibilities towards
national progress and prosperity. Within the couple oI years oI its scheduling,
the bank has not only carved out Ior itselI prominent niche in the mainstream
banking oI the country but in certain areas it has the distinction oI taking the
lead. In the short span oI time the Bank has been able to evolve a distinct
corporate culture oI its owned-based policies, which are realistic and are on
highly proIessional Iootings.
The Bank of Punjab
Internship Report 10
Constitutional Base:
The Bank oI Punjab was established under the provisions oI Section 28 oI Eederal
List included in the 4th schedule oI the Constitution oI the Islamic Republic oI
Pakistan 1973. The Bank was established under the Act oI Punjab Assembly viz.
The Bank oI Punjab Act 1989. The Bill to this eIIect was passed by the Provincial
Assembly on July 3, 1989 and was passed to, by Governor Punjab in accordance
with the Provisions oI the Constitution on July 26, 1989. The Act deIines rules
Iollowing.
1. Short title, extent, and commencement.
2. Establishment and incorporation oI the Bank.
3. Share Capital.
4. Register oI Shareholders.
5. QualiIication oI Shareholders.
6. Government to be shareholders.
7. Head OIIice oI the Bank.
8. Board oI Director.
9. Managing Director.
10. QualiIication and disqualiIication oI the directors.
11. Removal oI Directors.
12. Terms oI oIIice oI directors.
13. Vacancies.
14. General and special meetings.
15. Votes oI the shareholders.
16. Business, which the Bank is authorized to transact.
17. Business, which the Bank is not authorized to transact.
18. Auditors / Governments auditors.
19. Right and duties oI the auditors.
20. Liquidations oI the Bank.
The Bank of Punjab
Scope of the Bank.
Being a commercial Bank, The Bank oI Punjab perIorms all such Iunctions as are
attributed to commercial banking institution both in the area oI resource mobilization,
loans, and investment. The Bank is thus providing all type oI advances to business, trade,
and industry on seasonal and annual basis, and is ensuring, through the prudent policy,
the saIety and protection oI its loan portIolios, as the resources base oI the bank expands,
project Iinancing will also be brought into its Iold.
Management Of the Bank.
At the level oI Decision-making and implementation, senior management oI the bank is
drawn Irom highly accomplished bankers with rich experience in the banking proIession
both domestic and international. The entire responsibilities oI policy Iormulation and
management have been placed, under the law, with the Board oI Director. Eurthermore it
will be heartening to know that Mr. Nawaz ShariI, during his chieI Minister ship oI The
province oI Punjab issued special instructions to the political and executives` echelons
not to interIere in The Bank oI Punjab, thereby ousting the possibility any pressure which
may be put on the management oI the bank in respect oI recruitment oI staII or provision
oI credit. These instructions have become an essential part oI the culture oI the bank.
The Bank oI Punjab being a commercial bank perIorms all those Iunction as are
attributed to such banking institutions both in the areas oI resources mobilization and
investment. It is providing Iunds Ior commerce, trade, industry, and agriculture but its
main emphasis is on accelerated development oI agro-based industry. So the main
objective oI the bank is to channelize the resources into sectors, which have suIIered
Irom neglect. Other objectives included.
1. To provide speedier services to the common man.
2. To provide the highest rate oI return to the shareholders by achieving good
proIitable growth.
3. To enter into Iinancing contracts and to mobilize resources in local and now in
Ioreign currencies consistent with the objects oI the bank
The Bank of Punjab
Emblem.
The sun rising over the Iive wavy lines symbolizes the dawn oI new era oI progress and
prosperity Ior the land oI Iive rivers and hence Ior Pakistan. Eurthermore the main
objectives oI the inclusion oI cotton Ilowers and the spikes oI wheat in the emblem is
Iirstly to represent the Iact that the economy oI the Punjab stands on its agriculture
produces especially cotton and wheat and secondly to highlight the emphasis which the
bank is to place on development oI agro-based industry.
Subsidies and Sponsorships.
The bank is one oI the sponsors oI Trust Management Services Pvt. Limited besides
being a co-sponsor oI Trust Modaraba a Modaraba company incorporated in Pakistan
under the Modaraba companies and Modaraba (Eloatation and control) Ordinance, 1980.
Authorized Modaraba Eund and paid up Eund oI the said unit in Rs. 500 million and Rs.
150 million respectively.
The Bank is one oI the sponsors oI Trust Leasing Corporation Limited a public limited
company established under the Companies Ordinances, 1984. Authorized paid up capital
oI the company is Rs. 250 million and Rs. 100 million respectively.Eirst Punjab
Modaraba Services (Pvt) Ltd. established in Pakistan under Companies Ordinance.1984
and register under Moderate Companies and Modaraba (Elotation and Control)
Ordinance, 1980 is wholly owned subsidiary oI the bank. Authorized Iund oI this
Modaraba is Rs. 500 million where as paid up Iund is Rs 200 million.
First Punjab Modaraba Service Ltd.
The bank i s one oI t he s pons or s oI Trus t Management Servi ces Pvt .
Li mi t ed bes i des bei ng a co- s pons or oI Trus t Modaraba a Modar aba
company i ncor por at ed i n Paki s t an under t he Modar aba compani es
and Modar aba ( El oat at i on and cont r ol ) Or di nance, 1980. Aut h or i z ed
Modar aba Eund and pai d up Eund oI t he s ai d uni t i n Rs . 500 mi l l i on
and Rs . 150 mi l l i on r es pect i vel y.
The Bank i s one oI t he s pons or s oI Trus t Leas i ng Corporat i on
Li mi t ed a publ i c l i mi t ed company es t abl i s hed under t he Compani es
The Bank of Punjab
Or di nances , 1984. Aut hor i zed pai d up capi t al oI t he company i s Rs .
250 mi l l i on and Rs . 100 mi l l i on r es pect i vel y.
Ei r s t Punj ab Modaraba Servi ces ( Pvt ) Lt d. es t abl i s hed i n Paki s t an
under Compani es Or di nance. 1984 and r egi s t er under Moder at e
Compani es and Modar aba ( El ot at i on and Cont r ol ) Or di nance, 1980 i s
whol l y owned s ubs i di ary oI t he bank. Aut hor i zed I und oI t hi s
Modar aba i s Rs . 500 mi l l i on wher e as pai d up I und i s Rs 200
mi l l i on.
AWARDS AND ACHIEVEMENTS
Excellence Award by the Central Board of Revenue
The Central Board oI Revenue presented "Excellence Award" to the Bank oI Punjab in
recognition oI the contribution made by the bank towards Government exchequer.
3rd Kissan Time Awards
In recognition oI Bank's contribution in development and growth oI agricultural sector,
the Bank honoured with "Top Bank Ior Agriculture Loans" and "Best Bank Crop
Insurance" under 3rd Kissan Time Awards year 2006.
Best Corporate Report Award
Annual Report oI the Bank Ior the year 2005 won 5th position Ior "The Best Corporate
Report Award" Ior the Einancial sector, adjudicated jointly by the Institute oI Chartered
Accountants oI Pakistan and the Institute oI Cost and Management Accountants oI
Pakistan.
16th Bolan Excellence Award
The Bank was awarded Best Bank Award under 15th Bolan Excellence Awards
distributed in 2006.
Achievement AwardThe Lahore Chamber oI Commerce & Industry (LCCI) awarded the
Bank "LCCI Achievement Award" 2006.
The Bank of Punjab
VISION STATEMENT
'To be a customer Iocused bank with service excellence.
MISSION STATEMENT
To exceed the expectations oI our stakeholders by leveraging our relationship
with the Government oI Punjab and delivering a complete range oI proIessional solutions
with a Iocus on programmed driven products & services in the Agriculture and Middle
Tier Markets through a motivated team.
CORE VALUES
Our Customer As our Iirst priority.
Profitability Eor the prosperity oI our stakeholders that allows us to constantly
invest, improve and succeed.
Corporate Social Responsibility To Enrich the Lives oI community where we
operate
Recognition and Reward Eor the talented and high perIorming employees
Excellence In every thing we do.
Integrity In all our dealings.
Respect Eor our customers and each other.
The Bank of Punjab
Branch
Manager
Operational
Manager
Credit Remittances Advances Eoreign Trade
Import
Export
Short-term
loans
Mortgage
Loans
Account
Opening
Hierarchical View of Management Haroonabad branch
Total number oI employees in Haroonabad branch where I did my internship is 11. The
branch was headed by Branch manager Mr AbdalrauI Paracha. The Ilow oI
responsibilities and designations are shown in management`s hierarchy.
The Bank of Punjab
BOP Management
Sr. No Designation Name
President Secretrait
1 President Mr. Naeemuddin Khan
2 Deputy CEO Mr. Khalid Siddiq Tirmizey
Audit & Risk Asset Review
1 Group Head Audit & Risk Asset Review Mr. Ijaz ur Rehman Qureshi
2 Head Operational Audit Mr. Abdul Rehman
3 Head Risk Asset Review & BASEL Audit Mr. Shahzad Ahmad Cheema
Commercial Banking
1 Head Commercial Banking Mr. Liaquat Ali
Credit Administration
1 Head Credit Administration Division Mian Muhammad ShariI
2
Deputy Head Credit Administration
Division
Mr. Shahnawaz Saeed Khan
Compliance & Internal Control
1 Head Compliance & Internal Control Mr. IrIanuddin
2 Mr. HaIeez ud Din
Corporate & Investment Banking
1
Head Corporate & Investment Banking
Group-I & Group-II
Mr. Khalid Qaiyum
Consumer & Agriculture Credit
1 Group Head Agriculture Credit Mr. S.M. AtiI
2 Head Consumer Banking Division Mr. Ahmed Razi Ghazali
Einance
1 ChieI Einancial OIIicer Mr. Nadeem Amir
2 Deputy Head Einance Mr. Muhammad Iqbal Shahzad
Human Resource
1 Group Head Human Resources Mr. Moghis Bokhari
2 Deputy Head Human Resources Mr. Naveed HaIeez Shaikh
3
Head / Principal OIIicer's Training
Institute
Syed Zaki Ahmad
The Bank of Punjab
Category of the Services
The services in The Bank oI Punjab are classiIied in diIIerent categories.
Category A:
President
Executive Vice President (EVP)
Senior Vice President (SVP)
Vice President (VP)
Assistant Vice President (AVP)
Category B:
OIIicer Grade I
OIIicer Grade II
OIIicer Grade III
Cash OIIicer
Category C:
Clerical StaII
Category D:
Non-Clerical StaII
Driver
Guards
Gate Keepers
Tea Boy
The Bank of Punjab
Organizational Sttructure
DIVISION
DEPARTMENTS
ADMINISTRATION
OPERATIONS
BUSINESS DEVELOPMENT
CREDIT
INTERNATIONAL
FINANCE
RECOVERY
AUDIT & INSPECTION
TREASURY
ORGANIZATION & METHODS
INFORMATIONAL &
TECHNOLOGY
OFFICERS TRAINING INSTITUTE
SHARES
LAW
STATIONERY
PLANNING RESERCH &
PUBLICATION
HEADED BY: -
GENERAL MANAGER
HEADED BY: -
CHIEF MANAGER
REGIOAAL CHIEFS
BRAACH AE1WORK (273)
(273)
The Bank of Punjab
Branc Network
Faislabad (38) Lahore (73)
Gujranwala (45) Multan (70)
Karach/Quetta (07) Rawalpindi (40)
Total (273)
The Bank of Punjab
The Bank of Punjab
G.M
This division deals with the problems relates to the staII
administration. The main Iunction oI this department is to arrange a
comprehensive training program Ior recruited staII. Others Iunction
includes:
Recruitment
StaII remuneration
Placing the staII
Providing and deIining the opportunities Ior career
development and growth
Devising and implementing services rules.
Promotion and demotion
Suspension and termination
Transportation
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The Bank of Punjab
Security, health and beneIits.
G.M
This Division is concerned with the operational working in general banking,
which is concerned with the routine working oI the bank. Any problem or
ambiguity arise in any branch working are rectiIied and suggested Ior
correction by this division. This Division usually takes technical procedures
involved the decisions like commissions. And also,
The maintenance oI the existing building owned by the bank.
Opening new branches and their maintenance.
It also deals with the stationery problems oI the bank.
Computer Dept:
Stationary Dept:
Maintenance Dept:
O & M Department
The Bank of Punjab
G.M
It is the other name oI the marketing division. It promotes the bank
cause i.e. deposits and work Ior the over all development oI the bank.
Deposits are the liIeblood oI any bank. Without deposits bank cannot
perIorm any Iunction oI banking. This division Iixes the deposits target oI
every branch by keeping and eye over the potential customers in the area.
It gives motivation to branches to achieve their targets through
diIIerent campaigns and schemes like cash prizes and special increments. It
publishes a bulletin in which those branches are encouraged who achieves
their monthly targets. The main Iunction is to develop and attract the
customers and depositors. It also manages:
Advertising policy
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The Bank of Punjab
Sales promotion.
Schemes oIIered by the bank.
G.M
This division control over all credit operations like sanction of loans, nland Bill Purchased (BP)
and also keeps check over securities mortgage, hypothecating or pledge. t also fix the rate of
mark-up and other decisions concerning with the credit.
There is a credit committee, which consists oI senior oIIicers;
Branches send the credit proposal to head oIIice credit division. Credit
committee approves it aIter making a through analysis. It also
Prepare the policies regarding the sanctioning loan
Monitor loans and credit
Look aIter the portIolio oI the bank
DeIine credit limits against speciIied securities.
Agriculture Credit
Wing
The Bank of Punjab
G.M
This division is providing important services to the bank regarding the
matters oI International Trade, Import, Export Letters oI Credit, Travelers
cheque etc.
It develops 'Correspondent Relationship with others on commission
basis and this helps to deal with the clients having import export
business.
It handles treasury operations.
International wing
Forex Money
Market
Investment
Engg &
Maintenance
The Bank of Punjab
The Marketing and Spot Inspection cell, which were introduced by the
bank, are showing positive results in terms oI achieving Ioreign
currency deposit targets and other Ioreign related business.
G.M
It controls the routine Iinancial matters. The permission oI special
expenditure incurred in the branches, and other such cases. The daily
position and HO Extracts are daily sent to this division by all the branches.
This division not only estimates the proIit and loss oI every branch but also
prepare overall income statement and balance sheet oI the complete bank. It
also keeps record oI total deposits oI the bank and then their classiIication in
the Iorm oI loans into diIIerent sectors oI economy. The basic Iunctions are:
Monitoring the Iiscal and Iinancial policies oI the bank.
Balance Sheet
Results Monitoring
SBP affairs and
Compliance
Shares Dept.
Company Affairs
The Bank of Punjab
Deals in exploring means Ior investing surplus bank Iunds.
Maintenance and investment oI Gratuity and Pension Eunds oI the
employees.
G.M
The recovery division, which was established in 1994 to assist in regularizing the difficult
loan accounts, has rendered valuable services in this respect. To effect recoveries in an efficient
manner, a policy has been framed in accordance with the guidelines issued by the State Bank of
Pakistan Moreover, recovery cells at regional levels have been set up to assist the head office.
This division looks after the matters of recovery of loans with the assistance of legal advisors.
Law
Department
The Bank of Punjab
G.M
This department ensures appropriate system of checks and balances. t checks all the
irregularities, errors and forgeries if any, under the rules and regulations formed by the
Government of Punjab. For this purpose it doesn't only keep and eye on the branches in their
vicinity but also conduct surprise and comprehensive audits of the branches. This strategy has
improved working at the branch level. t not only points out the discrepancies but also tries to
solve it. Surprise audit maintain a good check on the over all working of the branch especially of
the side of finance.
Audit of
Branches
Rectification
and
Persuasion
The Bank of Punjab
GENERAL BANKING OF THE BANK OF PUN1AB
DEPOSIT DEPARTMENT
In modern times very Iew business enterprises are carried out solely with the
capital oI the owners. Borrowing Iunds Irom diIIerent sources has becomes an essential
Ieature oI today business enterprise. But in the case oI a entire banking system is based
on it. The borrowed capital oI the bank is much greater then their own capital. Banks
borrowing is mostly in the Iorm oI deposits.
These deposits are lent out to diIIerent parties. The larger the diIIerence between
the rate at which the deposits are borrowed and the rate at which they is lent out the
greater oI the proIit margin oI the bank. Eurthermore, the larger the deposit the larger will
be the Iunds available Ior employment; larger the Iunds lent out the greater will be the
proIit oI the bank.
To receive the deposit is the basic Iunction oI all commercial banks. The bank
does not receive these deposits Ior save keeping purpose only, but they accept deposits as
debts. When banks receive deposit Irom a customer, the relationship oI a debtor and
creditor is established where by the customer become the creditor and the bank a debtor.
When the bank receives amount oI deposit as a debtor, it becomes the owner oI it. It may,
thereIore use it as deems appropriate. But there is an implicit agreement that the amount
owned would be paid back by the bank to the depositor aIter a speciIied period.
NATURE OF DEPOSIT
Current or demand Deposits
The Bank of Punjab
Saving Deposit
Short Notice Term Deposit
Call Deposits
Eixed or Term Deposits
CURRENT DEPOSIT
Current deposit are those which are payable to bank whenever demand by the
customer. Bank doesn`t pay any proIit on current deposits. There are oI diIIerent scheme
oI saving deposits, which are classiIied under diIIerent duration purpose and rate oI
interest. Eixed deposits are those which are by the bank under the conditions that will not
be payable on demand but will be payable under Iixed or determinate Iuture time date.
SAVING DEPOSIT
This type oI accounts is one step towards the Islamization oI banking system in
Pakistan. There are two types oI PLS Accounts.
PLS Saving Account
PLS-TDR (ProIit & Loss Sharing Term Deposit Receipts).
PLS saving accounts can be opened with the minimum sum oI Rs. 100 and PLS-
TDR account can be opened Ior a sum oI Rs. 1000 or above. ProIit is paid on both types
oI the PLS account on halI yearly basis.
Under PLS saving account the depositor undertakes to share proIit or loss on the deposits
earned or sustained by the bank. Secondly the bank is at the liberty to invest the Iunds oI
the deposits in any avenue, it deems Iit. The PLS deposits are invested in non-interested
channels.
SHORT NOTICE TERM DEPOSITS
The Bank of Punjab
This kind oI deposit is Ior a short period. The depositor may withdraw his deposit
at any time by giving seven days notice to the bank. This type oI deposit Iacilitates the
depositor to withdrawn his amount with interest oI the deposited period.
CALL DEPOSIT
Call deposits are the sorts oI deposits, which are deposited with the banker against
any tender. This is without interest deposit. This may be with interest provided the
depositor has agreed to keep this amount with the bank Ior some Iixed period.
TERM DEPOSIT RECEIPTS
This type of deposit is same as the SNTD. The difference is that SNTD is for short period
(7- 30 days) while TDR is for long period (1 month up to 5 years).
ACCOUNT OPENING SECTION
Account opening is the Iirst step towards establishing a relationship between the
customer and the bank. The Bank oI Punjab is oIIering basically two types oI account:
Current Deposit Account
ProIit and Loss Sharing Account
The necessary condition Ior a customer, who wants to open an account with the bank, is
introduction, which is preIerably by the bank oIIicers or any account holder oI the bank.
The diIIerent categories oI accounts that are available are as under.
Individual Account
Joint Account
Partnership Account
The Bank of Punjab
Limited Company Account
Clubs, Society, Association, or Trust Account
SNTD
TDR
Eoreign Currency Deposit
ACCOUNT OPENING PROCEDURE
The general banking department perIorms various Iunctions among them the Iirst
and most important Iunction is Account Opening. The bank reserves the right to open
any account, which in its opinion is suitable as a customer. The process oI
opening an account is very simple and any body that would like to open his account could
do it easily without any diIIiculty.
The person would like to open his account is required to meet with the manager or
second oIIicer, who will give him an Application Iorm speciIically used Ior account
opening. Along with the Iorm a card Ior specimen signature is also supplied to the
customer. Manager has every right not to accept this contract iI he is not satisIied with
the details provided by the customer. But in case the contract is acceptable to both, the
next step is oIIicial account opening.
This begins with the Account Opening Register which can be thought as a
customer`s master Iile. The manager records the necessary details into this register5 and
allots an 'Account Number Irom this account opening register. This register is
maintained Ior each type oI accounts and the account numbers are allotted serially. AIter
opening the account every applicant`s date is entered in the computer to maintain the saIe
record and application Iorm is also saIely put oII, so that it can be available whenever it is
needed. Checking oIIicer is responsible to tally the manual data with computerized
account opening Iile. Eor Iix deposit only the application Iorm is needed, which is
prepared manually, because most oI the procedures oI Iix deposit is done manually.
Signature specimen card contains three signatures oI the applicant, applicant account
number, account type, branch code, and title oI account. It will be attached with the
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account opening Iorm. Banker uses this card when he receives the cheque, he compares
signature on the cheque with the Specimen card, Ior avoiding the Irauds.
CLEARING DEPARTMENT
This department receives the cheque and other negotiable instruments drawn on
local branches oI other banks. State bank oI Pakistan has clearing house, in which
cheque, and other negotiable instruments are brought by each local bank representatives
and the mutual claims oI each bank on other and oIIset and a settlement is made by the
payment oI diIIerence. Clearing system is help Iull Ior both the customer and saving
currency, time and labor.
Investments which are collected
Cheques
Demand DraIts
Telegraphic transIers
Mail TransIers
Pay Order
Dividend Warrants
CLEARING
Any instruments which drawn on BOP branches and other banks in same city that`s
instruments are called clearing. A clearing and date stamp is a Iixed on these instruments
these are two types oI clearing!
Outward Clearing
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Inward Clearing
Inward clearing means the cheque drawn on BOP and outward clearing means the
Cheques drawn on others
OUTWARD CLEARING
The instrument collected or stored bank wise and a schedules is prepared
separately Ior each bank mentioning the total number oI instruments and the amount oI
the instruments. Then these are recorded in a register called 'OUTWARD CLEARING
REGISTER then a main schedule is prepared showing the total number oI cheque and
their aggregate amount being presented in the clearing.
The cheque/instruments are handed over the clearing branch. Central clearing branch
issue CREDIT ADVICE to the branch Ior passing credit to its customer immediately. The
branch on receiving credit advice debits the clearing account and credit the respective
customer accounts.
INWARD CLEARING
On receiving cheque/instruments Irom central clearing branch, the in charge
checks the number and amount oI cheque received in clearing must tally with the main
schedule received Irom central clearing branch.
These cheque/instrument are entered in 'INWARD CLEARING REGISTER Ior the
cheque/instrument passed in clearing is a credit advice Ior the aggregate amount oI
cheque passed in clearing is prepared, drawn on central clearing branch.
RESERVES AT STATE BANK
Deposit held by bank at SBP serves as check clearing and collection balances.
Rather than physically transIerring Iunds between banks, check clearing and collection
can be done by simply debiting or crediting a bank`s account at SBP.
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REMITTANCE DEPARTMENT
Remittance is a major Iunction oI the bank. It is the transIer oI money Irom one
place to another place. The need Ior remittance is commonly Ielt in commercial liIe
particularly and in everyday liIe generally.
By proving this service to the customers the Bank oI Punjab earns a lot oI income in the
Iorm oI service charges.
TYPES OF REMITTANCE
The Bank oI Punjab deals with the Iollowing type oI remittances
Demand DraIt (DD)
Mail TransIer (MT)
Telegraphic TransIer (TT)
Pay Order
Now we discuss all these in detail:
DEMAND DRAFT (DD):
Demand draIt is a written order given by the one branch oI a bank on behalI oI
customer to another branch oI the same bank to a certain amount to the certain person.
PROCEDURE
1) A draIt voucher is Iilled which contains the Iollowing inIormation
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Name oI the parties involved
Date
Amount to be sent
Account number (iI DD is crossed)
2) A credit voucher is Iilled in order to get the excise duty and exchange commission.
3) The sender deposits the total amount oI the two vouchers i.e. the debit and credit
vouchers.
4) Then the cashier sends the cash receipt voucher to the accounts department and the
account records the amount paid in his cash scroll.
5) Accountant gives the DD leaI along with the DD voucher to his assistant who
records the sender`s name, amount and receiver`s name. AIter writing all the
inIormation in the DD register he gives it to the oIIicer along with the DD Ior
authentication.
6) AIter authentication the DD is handed over to the sender and bank sends the advice
to the concerned branch. So when the party presents the DD in the concerned
branch its payment could be made.
PARTIES INVOLVED
The Iollowing parties are involved in demand draIt;
1) Purchaser or Sender
The purchaser is the person who sends the money to a particular person payable at a
certain branch.
2) Issuing or Drawing Branch
The branch Irom where the demand draIt is issued to another branch oI the same
bank.
3) Drawer Branch
Branch in which the draIt has drawn and called upon to pay the amount.
4) Payee
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The person who is entitled to receive the amount aIter presenting the demand draIt in
the drawer branch.
MAIL TRANSFER
It is the transIer oI money Irom one branch to another branch oI the same bank
through mail service. In mail transIer there is no need oI advice as the amount is directly
credited to the receiver`s account.
PROCEDURE
1) Eirst a voucher is Iilled in whish the sender writes the amount to be sent, name,
account number oI the receiving person with the branch name and date.
2) A credit voucher is Iilled in order to deduct exchange, postage charges according to
the amount oI the mail transIer.
3) The sender deposits the total amount in the cash department.
4) The cash oIIicer gives the vouchers to the oIIicer aIter aIIixing received cash stamp
and writing the amount in red ink.
5) Then the oIIicer writes the amount paid in the cash scroll and gives the MT to his
assistant.
6) MT leaI is Iilled according to the inIormation provided in credit voucher. He also
writes the same inIormation in the MT register. Then he gives the MT leaI and MT
register to the oIIicer Ior authentication.
TELEGRAPHIC TRANSFER
This is the most urgent method oI remitting the money Irom one place to another
place. This method is used when the sender desires to send urgently, in this case the
sender request the manager oI the branch to issue TT.
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PROCEDURE
Eor sending the TT the manager and oIIicer apply a test. In the test the manager
and oIIicer uses a coding technique. They write their own code numbers, which is
allotted, to them as the bank branch code. AIter making all the conIormation the
concerned branch makes the payment to the receiver. II the sender wants to convey the
same message through telephone then he has to pay the charges oI
telephone along with the TT charges. Eirst the person deposit the TT amount along with
the charges through the credit voucher then his TT sent to the relevant branch.
PAY ORDER
A pay order is a written order issued by the bank on its own branch, drawn upon
and payable by itselI to pay a speciIied sum oI money to the person. The purpose oI a pay
order is to transIer the Iund Irom one place to another. It is usually
not issued in Iavor oI the parties oI other cities. Usually the pay order is issued Ior the
local transIer oI money Irom one person to another or Irom the person to any other
department. It is used Ior diIIerent purposes. The purpose may be the repairs oI the
branch or renovation oI the branch.
PROCEDURE
The procedure oI a pay order varies with the nature oI the purpose. II the work is
oI huge amount then Iirst the manager writes a letter to the Zonal ChieI in order to get
sanction oI the work. Then the advertisement oI the work is given in the newspaper in
order to invite the contractors. But iI the work is small then the branch manager has
discretionary power to select the party whose rate is lowest. AIter Iinishing the work the
contractor submits the bill oI work on his stamp pad. Then the bank issues a pay order,
against the pay order the contactor gets the amount Irom the issuing branch.
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.ACCOUNT DEPARTMENT
Account department is the backbone oI a bank. It plays a vital in perIorming
diIIerent Iunctions oI a bank. The account department oI is computerized as well as
manual. Accounting books oI diIIerent departments are maintained under this department
and with the help oI these, accountant prepare the monthly quarterly, semiannually and
yearly Iinancial statement and order statement oI the whole bank. All the transaction
taking place is recorded daily in the books oI accounts and in computerized ledgers.
Eor every transaction there is Voucher prepared and through these vouchers
contra entries are passed under diIIerent head. Good working oI accounts mainly depends
on the voucher system. Accounts department is responsible Ior proper handling and
maintenance oI vouchers oI diIIerent department
.
MANUAL FUNCTIONS OF ACCOUNTS DEPARTMENT
Accountant prepares vouchers Ior all daily activities oI diIIerent departments. Checking
oIIicer checks and tallies these vouchers with their daily transactions and posts their
entries under proper heads.
TYPES OF VOUCHERS
Debit Voucher
Credit Voucher
These two types oI vouchers are again classiIied under Iollowing types: -
Cash voucher
TransIer voucher
Clearing voucher
All the daily transaction in cash, transIer and clearing is done through these vouchers.
A sheet is prepared on which all the vouchers passed during one day are consolidated and
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summarized. This sheet is called supplementary sheet. There are two types oI
supplementary sheet.
Daily paid voucher sheet
Daily receipt voucher sheet
Paid sheet is used Ior all debit vouchers and receipt sheet is used Ior all credit vouchers.
CASH BOOK
Cash book is prepared daily to keep the record oI daily paid vouchers. Cash book
contains the opening balance and the closing balance oI a working day. BeIore writing
and balance the cash book Iirstly there is needed to properly arrange all the vouchers oI
that day.
MAINTAINING & UPDATING LEDGERS
One oI the Iunctions oI accounts department is to maintain and update the term
deposit ledgers and books manually. Term deposit receipt or TDR ledger is updated aIter
every month Ior estimating proIit on customer`s accounts. Accountant prepares diIIerent
ledger Ior all schemes oI term deposit. With the help oI TDR ledger accountant prepares
'provisional ledger. Erom this ledger accountant calculate the monthly product oI each
account and estimate the proIit Ior a halI-year. The semiannual proIit on each account
will be the expenses oI branch.
COMPUTERIZED FUNCTIONS OF ACCOUNTS DEPARTMENT
Most oI the daily working is done through ledgers. In BOP all the daily
transaction in deposit, cash, clearing, transIer, remittance and advance are perIormed
these daily ledgers; accounts department receives the Iollowing output oI general ledger.
Daily general ledger expense
Daily general ledger income
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Daily general ledger assets
Daily general ledger liability
Daily general ledger circle expense
Daily general ledger audit expense
The Iormats oI all these ledgers are same. They contain the Iollowing head
account no. description, previous balance. Codes are assigned to all these items.
Income will be credited in the branch account and expenses will be debited I the branch
at the month end.
All the expenses oI circle, regional, audit, inspection oIIice is debited in the head
oIIice account, because it is the responsibility oI the head oIIice to bear the expenses oI
its oIIices. Eor all the heads oI general ledger there is closing balance and opening
balance.
These ledgers are helpIul in preparing the daily, monthly, semiannually and
yearly statements. Some oI these statements are prepare Ior the
purpose oI record keeping oI branches and some are prepared to send to the circle oIIice,
head oIIice and state bank oI Pakistan.
Some oI these statements are
Statement oI provisional income
Statement oI provisional expense
Statement oI head oIIice account
Summary oI income and expense
Statement oI proIit and loss on PLS account
Statement oI proIit and loss PLS 365 account
Balance conIirmation report
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Statement oI aIIairs
BILLS DEPARTMENT
This department deals in bills Ior collection Ior all kinks such as cheque, draIt, and
pay orders, call deposits etc. with outstation branches oI BOP or with other banks. It
provides service to their customer to get payment Irom the nearer bank at nominal
charges.
The Iour main heads oI bill department is.
Outward Bill Ior Collection (OBC)
Inward Bills Eor Collection (IBC)
Outward Documentary Bills Eor Collection (ODBEC)
Inward Documentary Bills Eor Collection (IDBEC)
OUTWARD BILLS FOR COLLECTION
Bills department receive cheque or other oI bills Irom its kinks client whose account
must be opened in that branch. The branch Iorwards the check with schedule or covering
letter to that branch on which bills is drawn. The checking oIIicer oI bills department will
cross the cheque with special bank stamp beIore Iorwarding the cheque.
OBC register is also maintained Ior proper record keeping oI outward bills. This
register is updated two times once at the time oI receiving bill Irom clients and the other
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when the conIirmation advice oI this cheque is received Irom the payable branch. Bank
gets a commission Rs. 25/- and courier charges Rs. 40/- on the service.
INWARD BILLS FOR COLLECTION
The branches which receive bill have to veriIy these bills Ior payment. The party
account must be opened in that branch. The responsibility oI this branch is to veriIy the
bills Ior collection with in three days and send the advice to the originating branch.
In case oI veriIication oI bills is approved, banks debit the account oI the respective
account holder and send a debit advice to the originating branch and at the same time
credit the head oIIice account Ior inward bills IBC register is maintaining Ior keeping the
proper record oI the bills.
OUTWARD DOCUMENTARY BILLS FOR COLLECTION
Originating branch receives the documentary bills Irom their clients and sent them
to out station branches oI the same bank or other bank. Customer account must be opened
in that branch. The documentary bills are i.e. trust receipt, railway receipt, sales invoice,
receipts oI courier service etc. bank gets as commission 0.35 plus postage charges plus
courier service charges oI this service. Seller and producer both can avail the Iacility oI
bank in case oI selling and purchasing their product or goods.
INWARD DOCUMENTARY BILLS FOR COLLECTION
Bank receives the documentary bills Irom the other outstation branches oI the same
banks or other banks Ior collection the amount Irom purchaser.
In this case back acts as a buyer`s bank, when bank receives the documentary bills they
send intimation to buyer about his arrival oI goods. II the buyer is the account holder then
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bank will debit his account otherwise purchaser deposits the amount oI the bills. Bank
hand over these documents to purchase, on behalI oI which buyer receives the goods.
Bank also charges commission
ADVANCES/CREDIT DEPARTMENT
It is the loan Iunction, which produces the major person oI bank`s income, and as
such it is the major areas oI proIessional banker`s concern and attention.
PRINCIPLES WHILE ADVANCING
Basically there are Iive principles that must be duly observed while advancing
money to borrowers.
SaIety
Liquidity
Disposal
Remuneration
Suitability
FORMS OF LENDING
Many there are two types oI advances:
Short-term (maturity within one year)
Long term (maturity with the period oI more than one year)
However they are Iurther classiIied as:
Running Einance
Demand Einance
Cash Einance
Letter oI Guarantee
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RUNNING FINANCE
This Iorm oI Iinance was previously known as 'overdraIt. When a customer
requires the temporary accommodation, his bank allows withdrawal his account in excess
oI credit balance, which the customer has in its account, a running Iinance
occurs. The accommodation is thus allowed collateral security. When it is against
collateral securities, it is called a 'Secured Running Einance and when the customer
cannot oIIer any collateral security except his personal security, accommodation is called
a 'Clean Running Einance. The customer is in advantageous position in running Iinance
because he has to pay the mark-up only the balance outstanding against him on daily
product basis.
DEMAND FINANCE
This is common Iorm oI Iinancing to commercial and industrial concerns and is
mad available either against pledge or hypothecation oI goods produce or merchandise.
In Demand Einance the party is Iinanced up to a certain limit either at
once or as and when required. The party due to Iacility oI paying mark-up only on the
amount it actually utilizes preIers this Iorm oI Iinancing
.
Ordinary Shares
PreIerred Shares
It can be
Quoted or Unquoted
The Bank of Punjab
Registered
Bearer
Inscribed
Securities for Advances:
Pledge
Hypothecation
Guarantee
Indemnity
Charge
Advances against ' Stock Exchange Securities
Advances against immovable property 'Mortgage
'The bailment oI goods as security Ior the payment oI the debt and
the perIormance oI a promise is called pledge
Pledge is the characteristic mode oI taking goods as the security and the
pledge occurs when the goods or document oI the title thereto or the
securities are delivered by the customer to his banker to be held as security
Ior the repayment oI the advance.
Pledges:
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In a pledge, the ownership remains with the pledger but the pledgee
has the exclusive possession oI the property until the advances in repaid in
Iull, while in case oI deIault the pledgee has the power oI sale aIter giving
due notice.
People with the saIe custody oI goods, when entrusted with the goods Ior the
speciIic purpose may not make the valid pledge.
'A legal transaction where by goods may be made available as the security
Ior a debt without transIerring either the property or the possession to the
ledger.
When the property in goods is in charged as the security Ior a loan
Irom the bank but the ownership and the possession is leIt with the
borrower, the
goods are said to be hypothecated. The essence oI the hypothecation is that
neither the property in the goods nor the possession oI them passes to the
lender, but the security is guaranteed by means oI Letter oI Hypothecation,
which usually provides Ior a banker`s charge oI the hypothecated goods.
Hypothecation:
Guarantees:
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'A contract to perIorm the promise, or discharge the liability oI the
third person in case oI his deIault
This is so when an application Ior the advances cannot oIIer any
tangible security, the banker may rely on the personal guarantees to protect
himselI against loss and advances or overdraIt to the applicant. ThereIore a
guarantee may be either written or Oral. The Grantee is a promise by one
person called the guarantor or security to another Ior answering the present
or Iuture debt iI a second person called the 'Principal Debtor.
'A contract by which one party promises to save the other Irom loss
caused to him by the conduct oI the promisor himselI or by any other person
is called the contract oI indemnity
Thus in an indemnity, the promisor is the only person who becomes
liable to the promise iI the latter suIIers a loss on account oI his doing
something at the express desire oI the Iormer.
Indemnity:
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When immovable property oI one person is by act oI parties, or
operation oI law, made security Ior payment oI money to another, and the
transaction does not amount to mortgage, the latter person is said to have the
charge on the property, and all the provisions herein beIore contained which
apply to a simple mortgage shall, so Iar as may be apply to such charge.
This means that a charge is a right oI payment out oI certain property.
The charge can be created by the act oI parties or by the operation oI the law
and although the property is made a security the payment oI loan, is still not
he mortgage.
Charges:
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Advances against Stock Exchange Securities:
Stock Exchanges Securities is the vast term which covers all gilt
edged securities such as:
Eederal and Provincial Government Bonds
Post trust or Municipal Bonds
Shares and debentures
Banker, as security Ior advances to the customer, Irequently accepts
these securities. Advances can be against:
PreIerence Shares
Ordinary Shares
PreIerred Shares
It can be
Quoted or Unquoted
Registered
Bearer
Inscribed
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ADVANCES AGAINST IMMOVABLE PROPERTY
A mortgage is the transIer oI and interest in speciIic immovable property Ior the
purpose oI securing the payment oI the money, advanced or to be advanced. By way oI
loan, and existing debts or the perIormances oI the engagement this may rise the
pecuniary liability.
The transIer is called the mortgager` and the transIeree the mortgagee` the principal
money and interest oI which payment is secured Ior the time being and instrument by
which the transIer is eIIected, is called the letter oI the mortgage deed.
Availability oI adequate Ilows oI credit Ior industry and agriculture are a sine qua non Ior
the growth and development oI an economy. This acquires added importance when
agriculture is the mainstay oI the economy as also the sector where the bulk oI the poor
are concentrated. Growth and productivity in Pakistan's agriculture has slowed down in
recent years and is, thereIore, oI serious concern given its importance Ior the economic
prosperity oI the country. Apart Irom various other weaknesses in
the inIrastructural support oI the agricultural sector, inadequacy and lack oI eIIicacy oI
credit, Ilows to support agriculture related activities has been a major constraining Iactor.
Agriculture is the largest sector oI the economy. It contributes 25 percent to GDP,
provides raw materials to 80 percent oI industry and employment to over 50 percent oI
the population. This is a sector that has the shortest gestation period Ior
investments and, thereIore, a remarkable capacity to bring about a turn around in the
economy. This important sector in Pakistan is suIIering Irom a number oI maladies and is
consequently witnessing stagnation in productivity.
Due to policy and administrative exigencies, the savings in the agriculture sector remain
low and, thereIore, the sector has perpetually remained capital starved. The pricing oI
input and output in agriculture over the years has Iorced the majority oI Iarmers in
Pakistan to plough back their incomes into agriculture and non-institutional credit, and
has more oIten than not served to sap their potential earnings. Needless to say, that
shortage oI savings and lack oI availability oI capital is one oI the major reasons Ior
The Bank of Punjab
poverty in the country. The agricultural and rural sectors in Pakistan in general and in
Punjab in particular are, thereIore, suIIering Irom severe under-development. Under a
desirable development model, Punjab can:
Increase agricultural production to meet the country's requirement oI essential Ioods
items and industrial raw materials.
Develop agro-based industry in the rural sector Ior economic value addition;
Generate additional employment opportunities in rural as well as adjacent small
towns/cities
Control massive migration to the urban centers that in turn is causing a number oI
social, administrative (i.e. law and order) and economic problems Ior the urban areas
Elevate poverty and improve the income generating capacity oI the agri-based
population.
AGRICULTURE SCHEME
There are many agriculture promotion schemes provided by BOP.
Green Tractor Lease Einance Scheme
Agri Einance Branches
Agricultural Einance Scheme
Kissan Dost Tractor Scheme
Second Hand Tractor Lease Einance Scheme
Kissan Dost Aabiari Scheme
Kissan Dost Mechanization Support Scheme
Kissan Dost Earm Transport Scheme
Kissan Dost Eslah-E-Arazi Scheme
Kissan Dost Live Stock Development Scheme
Livestock Breed Improvement Trough VVW
Kissan Dost Commercial Agro Services
The Bank of Punjab
Kissan Dost Agri Mall Einance Scheme
Corporate Earming Einance Scheme
Commercial Lease Einance Tractor Scheme
Demand Einance-Sheds Construction and Civil Works
Lease Einance Eacility Ior Milch Animals
Running Einance-Livestock/Poultry and Eish Earms
Kissan Dost Model Dairy Earms (PDDC)
Kissan Dost Model Milk Collection Center (PDDC)
Kissan Dost Green House Einance Eacility
Kissan Dost Cold Storage Einance Eacility
Scheme Ior Controlled Sheds
Lease Einance Eacility Ior Installation oI Biogas Plant
Group Einancing to Small Earmers
Clean Credit Eacility through Syngenta Eranchisees
Zarkaashat Drip Irrigation System
Markup oI Schemes
BUSINESS PROMOTION SCHEME
BOP Quick Cash
BOP Car Loan
BOP House Loan
BOP SME Loan
BOP Assaish Loan
BOP House Loan Eor Eederal Govt
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SERVICES
Commercial Banking
Corporate & Investment
Cash Management Services
Utility Bills
Lockers
COMMERCIAL BANKING
The Commercial Banking Group has been Iormed to cater the needs oI small & medium
size customers Ior increasing Bank`s business signiIicantly with clear Iocus,
repositioning oI resources and active marketing to improve Bank`s proIitability.
Commercial Banking will deal with customers having sales turnover and aggregate credit
exposure as per benchmarks prescribed in the SBP`s Prudential Regulations.
This Group`s emphasis will be to meet necessary business needs oI customers which are
numerous as compared to CIB clients but their individual credit requirements are
relatively much smaller. In view oI this peculiar nature oI this business segment that
involves a higher turn over a much wider network is needed. The SME will concentrate
on rebuilding its set up which suits to its peculiar needs on all locations.
CORPORATE & INVESTMENT BANKING
Corporate Banking
The BOP Corporate Banking endeavors to market new clients and retain the existing
relationships and build market share by oIIering superior services, competitive pricing
and wide product range to valued corporate clients including Public Sector Entities and
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Multi National Companies. BOP Iacilitates its customers Ior all sorts oI their banking
needs including working capital, trade Iinance, BMR and project Iinancing etc. BOP has
worked on some oI the local markets` largest and most complex transactions and
inIrastructure projects.
The BOP Corporate Banking Group comprises oI seasoned relationship management
team to meet the demanding service standards oI large corporations. The group delivers a
Iull range oI high quality advisory, Iinancing and operational service solutions tailored
according to customers` needs.
Investment Banking
The investment Banking Group is entrusted with the prime responsibility oI developing
and executing investment banking strategy to enhance and maximize shareholder value
and customer conIidence. IBG specializes in providing innovative and unique advice to
its clients to assist them in meeting challenges in an ever-changing market. The team oI
qualiIied proIessionals operates under a strict risk management Iramework, Iollowing
best practices within their Iields and continuously striving Ior excellence.
Investment Banking Unit oIIers Iull spectrum oI services, which include TECs,
Syndicated Einances, Structured Einances, Leveraged Buyouts, Project Einance,
Quasi-Equity Products, Independent Advice, Equity Placements, IPOs, Equity
Underwriting, Mergers, Corporate Restructuring, Acquisitions and other products. IBU
also works on and come up with providing Eund Management Eacilities
CASH MANAGEMENT SERVICE
Cash Management is a process oI collections & payments on behalI oI the Customers
using the Bank Network.The objective is to Iaciliate organizations with multiple
collection points in gathering Cash / Eunds and making them available in the customer
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operating Account. Similarly it Iacilitates disbursement oI Irequent and or Bulk payment
to multiple locations.
This should be accomplished with minimal supervision by the customer, supported by an
automated system to provide timely and requisite MIS / Reconciliation under agreed
Service Levels
UTILITY SERVICE
Customers can pay their utility bills e.g. electricity, water gas, telephone, mobile, at any
oI our 272 branches across Pakistan. Eor your convenience bills are collected on all
working days Irom 9:00 am to 5:00 pm (Monday to Eriday) except lunch & prayer breaks
and Irom 9:00 am to 1:30 pm on Saturday.
You can also pay your bills by availing our drop box Iacility. Just drop your Cheque
along with bill at your branch and collect the receipt in the evening, avoid the hastle oI
standing in queues and save your precious time
BOP LOCKER
Discover peace oI mind, enjoy personalized service and operate your locker in a Iriendly
and pleasant environment at The Bank oI Punjab.
Locker Size Annual Fee
Small Rs.1,200
Medium Rs.1,800
Large Rs.3,000
Extra Large Rs.6,500
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These are the other services provided by the BOP.
ATM Eacility
On-Line Banking
Lockers Eacility
Demand DraIts
Letter oI Credit
Pay Order
Mail TransIer
Debit Card
Collection oI Utility
AUTOMATED TELLER MACHINHE
Through the ATM`s Customers have access to the various services such as
withdrawal, balance enquiry and mini statement? Complete security is ensured because
access to the account is only possible by entering a Iour digit personal identiIication
number (PIN) known only to the account holder. Cash withdrawal limit is up to Rs.20,
000 per day. Annual charges oI ATM is Rs.250/- per card.
ONLINE BANKING
BOP is currently oIIering window-based online banking to its customers, which
gives access to inIormation on their accounts and the liability to act on the latest
inIormation received over the net.
LOCKERS
The Bank of Punjab
It is one oI the utility services that BOP provides to their customers Ior keeping
jewellery, important documents and other valuables.
DEMAND DRAFT
BOP provides saIe, speedy and reliable way to transIer money at vary reasonable
rates. Any person whether an account holder oI the bank or not, can purchase a Demand
DraIt Irom a bank branch.
LETTER OF CREDIT
BOP is oIIering its business customers the widest range oI option in the area oI
money transIer. BOP`s letter oI credit service is with competitive rates, security, and ease
oI transaction, BOP Letter oI credit is the best way to do the business transactions.
PAY ORDER
BOP provides transIer oI money using diIIerent Iacilities. Its pay orders are a
secure and easy way to move the money Irom one place to another. The charges Ior this
service are extremely competitive.
MAIL TRANSFER
Moves money saIely and quickly Irom BOP Mail TransIer service. The rates Ior
this service is quiet impressive as compare to the market.
The Bank of Punjab
DEBIT CARD
BOP Apna Cash Card is an ATM plus Debit Card.
1. The Iront oI the card will have the Iollowing matter on it:
Card Holder`s Name
International Bin Number (6 Digits - XXXXXX)
Magnetic Strip
Signature Panel
Conditions oI Usage
M-Net and M-Net logo
LIMITATIONS
Any non-personal account i.e. Companies, Organizations, Trust Account,
Government account and Collection account etc.
Dormant, inoperative, blocked or restricted accounts.
Accounts with 'NIL balance.
Term Deposit Accounts.
NIDE Accounts. (Non Interest Demand Einance Accounts)
Accounts requiring thumb / photo Ior operation (illiterate accounts) ATM/Debit
cards can only be issued on local currency accounts.
The Bank of Punjab
MARKETING MIX
~The set of marketing tools that the firm uses to pursue its marketing objectives in
the target market.
FOUR Ps OF MARKETING MIX
Marketing Mix is a Combination of Four P`s. Product, price, promotion and place.
1) Product Service Provided by Bank
2) Price Commission and Bank Charges Received
3) Promotion Promotion of Services
4) Place Placement of Services i.e. Network of its Branches
PRODUCTS / SERVICES
Due to trend setting and innovative banking, Punjab Bank presents a range oI quality
products with revolutionary perks and convenience. BOP provides a wide range oI
products/ services to its customers, which can be compared with any Ioreign, or national
bank in terms oI quality and reliability.
Here is an overview oI diIIerent products and services Iormulated by Punjab Bank.
Products Offered By Bank Of Punjab
The Bank of Punjab
House Loan
The Bank of Punjab
Particulars Bank`s Policy
About Scheme 'BOP House Loan is a long term finance facilitv for
Purchase of house/flat
Purchase of Plot & Construction thereon
Construction of house on self owned plot
Renovation/home improvement
provided for personal use onlv
Eeatures
Target Market Salaried Individuals (SI)
SelI Employed ProIessionals (SEP)
SelI Employed Businessmen (SEB)
Einance
Amount
PURPOSE OE LOAN
MINIMUM
AMOUNT
MAXIMUM
AMOUNT
DEBT /
EQUITY
Purchase &
construction oI House
/ Elat or Construction
300,000
No Limit as per
debt burden oI the
customer
Not to
exceed 70
oI ESV
Home Improvement /
Renovation /
Additions
200,000
No Limit as per
debt burden oI the
customer
Not to
exceed 30
oI ESV
The Monthly Instalment should not exceed 50 oI monthly net
income.
Tenure
Purpose Minimum Maximum
HOUSE/ ELAT
PURCHASE
03
YEARS
20 YEARS
CONSTRUCTION
03
YEARS
20 years with maximum 12 months
grace period, during this period mark
up will be on the Iinance Irom Iirst
draw down
HOME
IMPROVEMENT
03
YEARS
07 YEARS
Mark up Rate
TENURE MARK-UP RATE
EREQUENCY OE
CHANGE OE MARK-UP
RATE
3 to 20 Years,
or as per MOU
AAvg. 3 Years ask side
KIBOR 375 bps with
Iloor oI 16 p.a.
Eix Ior 3 Years & revise
aIter every 3 years
The Bank of Punjab
Charges
Details
Processing Charges
Upto Rs. 2(M) Rs. 4000/- per case
Above Rs. 2(M) to Rs. 4(M) Rs.5500/- per case
Above Rs.4(M) Rs. 6500/- per case
E-CIB Charges
Rs.300/- per case
Guarantor e-CIB Charges
Rs.50/- per report
Documentation Charges
Actual
Legal Eee
Actual
Valuation
Actual
Mortgage Charges/Eee
Actual
Pre-Payment
Penalty
NO Prepayment Penalty
Late Payment
Penalty
Principal
Amount
Cheque returned/
Instalment delayed upto
20 days per
cheque/instalment
Over 20 Days Past
Due on principal
amount on daily
product basis
Upto Rs
2.50 (M)
Rs.500/-
Additional mark-
up 1
Rs.500/-
Upto
Rs.5.00
(M)
Rs.1,000/-
Additional mark-
up 1
Rs,1,000/
Over Rs
5.00 (M)
Rs.1,500/-
Additional mark-
up 1
Rs.1,500/
Insurance Property insurance (iI loan amount exceeds value oI end) and liIe
insurance oI borrower Ior loan amount will be mandatory
Eligibility
Criteria ELIGIBILITY CRITERIA FOR SALARIED
INDIVIDUALS (SI)
Age between 25 and 60 Years or retirement date; whichever is
earlier (60 Years at maturity oI Iacility)
The Bank of Punjab
Minimum Take Home Salary is Rs. 10,000/-
Permanent. Employee with Minimum 03 Years oI continuous job
Experience including 01 year with current employer. (02 Year Ior
BOP Employees including probationary period).
Maintaining Salary Account in any bank.
Have valid CNIC
Residing or working in launching cities.
ELIGIBILITY CRITERIA FOR SEP/SEB
Minimum 03 Years in current business.
Minimum Monthly Net Income is Rs. 20,000/- (Established
through Tax Return or Income Estimation Report oI outsourced
agencies or Bank Statement).
Have valid CNIC
Tax Payer
Security oI
Loan
House/Elat purchased.
Plot on which construction is to be carried out.
House on which renovation is to be carried out.
10 Token Registered Mortgage
Equitable mortgage Ior the Iull marked up amount
Noting oI charge in revenue record
LiIe Insurance oI the borrower assigned in the name oI Bank
Insurance oI property
Three undated cheques Ior the marked up loan amount (principle
mark-up)
Documents
Required FOR SALARIED PERSON
Copy oI valid CNIC
Latest Salary Slip / Employer CertiIicate on organization`s letter
head (as per BOP specimen)
Two Recent Photographs
Bank Statement Ior last 6 months
Latest Copy oI utility bills (Electricity & phone)
Income Tax Return/Wealth Statement OR Non-Tax Payees Eorm,
iI applicant is a non-tax payer
FOR SELF EMPLOYED BUSINESSMEN /
PROFESSIONAL
The Bank of Punjab
CNIC
Bank Statement Ior last 01 Year oI Business Accounts
Latest Copy oI utility bills (Electricity & phone) oI Residence
Copy oI Rent agreement iI living in rented house
BUSINESS RELATED DOCUMENTS.
Latest copy oI utility bills (Electricity & phone) oI current
business address.
Documentary evidence in business or in the proIession Ior the last
05 years.
Proprietorship CertiIicate/Partnership deed
Copy oI ProIessional Degree (Eor ProIessionals)
Title document or rent deed oI the oIIice
II oIIice premises moved in the last 3 years details and evidence oI
last oIIice premises
Copy oI proIessional degree Ior selI-employed proIessionals
BUSINESS FINANCIAL DOCUMENTS.
Income Tax Return/Wealth Tax Statement
BOPance Sheet
ProIit & Loss Statement
Any other documents
PROPERTY RELATED INFORMATION TO BE
PLACED WITH THE BANK AS SECURITY
Copy oI Title document oI the property.
Copy oI approved building plan and completion certiIicate oI
house.
Copy oI property tax payment receipt (PT1/PT 10)
NEC
Any other documents advised by legal counsel
NOC to mortgage leasehold property to the bank should also be
obtained Irom the respective LESSOR (iI applicable) and to
ensure that there are no restrictive covenants in the Lease
Agreement / Deed. NOC to mortgage Irom concerned society
The Bank of Punjab
Car Loan
The Bank of Punjab
About Scheme A lease facilitv for the purchase of vehicles for personal use.
Eeatures
Einance
Amount
Minimum: Rs. 200,000/- Maximum: 5,000,000/-
Tenure Minimum: 01 Year Maximum: 05 Years
Mark up Rate
Tenure Mark-up Rate
1 year
Avg. 1 Year ask side KIBOR 400 bps with
Iloor oI 17 p.a.
2 Years
Avg. 2 Years ask side KIBOR 400 bps
with Iloor oI 17 p.a.
3 & 5
Years
Avg. 3 Years ask side KIBOR 400 bps
Minimum
Equity
Govt. / BOP Employees Pvt. Employees SEP/SEB
10 15 20
Down
Payment
Equity Processing Charges Eirst Year Insurance Eirst Monthly
Instalment
Charges
Details
Processing Charges
Rs. 5,000/-
E-CIB Charges
Rs.300/- per case
Guarantor e-CIB Charges
Rs.50/- per report.
Actual
Insurance Rate
4 Irom Insurance company on bank` panel
Registration Charges
Actual. Payable directly by the customer
Pre-Payment
Penalty
Pre-payment penalty 5 on principal outstanding .However, II the
customer repays in order to obtain Iinance Ior new vehicle no penalty may
be charged.
Debt Burden The monthly payments oI all loans/lease/limits Irom all EIs/banks should
not exceed 50 oI Take Home Salary / Net Income.
Late Payment
Penalty
5 on the amount oI instalment Maximum Rs. 1000/- Cheque
Dishonouring Charges (as per schedule oI charges oI the bank)
The Bank of Punjab
Eligibility
Criteria ELIGIBILITY CRITERIA FOR GOVT. EMPLOYEES &
BOP EMPLOYEES
Permanent Govt. Employee with Minimum 03 Years oI job
Experience. (01 Year Ior BOP Employees).
Contractual Employees are also eligible but loan should be
adjusted beIore 06-months oI the expiry oI contract. Moreover,
departmental undertaking / one Personal Guarantee oI Govt.
Employee oI grade 17 & above shall be obtained Ior contractual
employees (Einancial commitment oI Guarantor should be
established through E-CIB report & Salary Slip/Employer
CertiIicate/Bank Statement oI salary account showing monthly
credits oI salary amount).
Have valid Driving License & CNIC
ELIGIBILITY CRITERIA FOR PRIVATE EMPLOYEES
Permanent Pvt. Employee with Minimum 03 Years oI job
Experience including 01 year with current employer.
Maintaining Salary Account with any bank.
ELIGIBILITY CRITERIA FOR SEP/SEB
Minimum Monthly Net Income is Rs. 20,000/- (Established
Documents
Required FOR SALARIED PERSON
The Bank of Punjab
Copy oI valid CNIC
Latest Salary Slip / Employer CertiIicate on organization`s letter
head (as per BOP specimen)
Bank Statement Ior last 6 months
Latest Copy oI utility bills (Electricity & phone)
FOR SELF EMPLOYED PROFESSIONAL
/BUSINESSMEN
Copy oI CNIC
Bank Statement Ior last 01 Year oI Business Accounts
business address.
2 years.
Security Car will be registered in the name oI Bank as per lease agreement.
Comprehensive Insurance Policy (Insurance CertiIicate/policy will
be sent directly to the branch by the Insurance Company).
Post Dated Cheques as per the repayment schedule.
Three (03) undated cheques oI marked up amount (Principal
Mark-up) Any additional guarantee, iI required as per the contents
oI the approval letter
The Bank of Punjab
Asaish Loan
The Bank of Punjab
About Scheme "BOP Aasaish Loan is personal loan facilitv for banks target market for
the purchase of Consumer durable goods for their personal use,
repavable on easv instalments"
Eeatures
Brands/
Products
All renowned brands including PEL, LG, Sony, Samsung etc. Ior all
products like ReIrigerator, TV, Microwave Oven, AC, Washing machine
etc.
Down
Payment
0
Tenure / Loan
Amount /
Mark-up Rate
Tenure
Mark-up Rate
(Reducing BOPance method)
6 months 0
9 Months 8 p.a
12 Months 11p.a.
18 Months 15p.a.
24 Months 18p.a.
Charges
Details
Processing Charges
Rs. 500/- per case
E-CIB Charges
Rs.125/- per case Upto Rs. 100,000/-
Rs.200/- per case over Rs. 100,000/-
Actual
Pre-Payment
Penalty
No Penalty
Late Payment
Penalty
3 on the amount oI instalment per day Ior the days the amount remains
overdue Max. Rs. 500/- Cheque Dishonouring Charges (as per schedule
oI charges oI the bank)
Eligibility
Criteria Eligibility Criteria for Govt. /Armed Forces/BOP
Employees
Minimum Take Home Salary is Rs.7,000/-
The Bank of Punjab
Permanent Employee with Minimum 01 Year oI job Experience.
departmental undertaking / one Personal Guarantee oI equivalent
or senior grade shall be obtained Ior contractual employees
(Einancial commitment oI Guarantor should be established
through E-CIB report & Salary Slip or Employer CertiIicate or
Bank Statement oI salary account showing monthly credits oI
salary amount).
Have valid CNIC
Eligibility Criteria for Private Employees
Have valid CNIC
Eligibility Criteria for SEP/SEB
Minimum Monthly Net Income is Rs.15,000/- (Established
through Tax Return or Einancial Statements or Bank Statement).
Have valid CNIC
Documents
Required For Govt. /Armed Forces/BOP Employees
Copy oI valid CNIC
Latest Salary Slip (Employer CertiIicate, iI salary slip is not
provided by employer)
Employer CertiIicate on organization`s letter head (as per BOP
specimen)
Bank Statement Ior last 06 months (where salary is being
transIerred).
Latest Copy oI utility bills (Electricity & phone) (oI present living
address).
The Bank of Punjab
For Private Employees
Copy oI valid CNIC
specimen)
transIerred).
address)
iI applicant is a non-tax payer In case oI non-tax payee, one
personal guarantee is required. one Personal Guarantee oI
equivalent or senior grade shall be obtained Ior contractual
employees (Einancial commitment oI Guarantor should be
established through E-CIB report & Salary Slip or Employer
CertiIicate or Bank Statement oI salary account showing monthly
credits oI salary amount)
For self employed business professional
Copy oI valid CNIC
Bank Statement Ior last 06 months oI Business Accounts
iI applicant is a non-tax payer. In case oI non-tax payee, one
personal guarantee is required.
Business related documents.
business address.
2 years.
Security Post Dated Cheques
LiIe Insurance oI Borrower.
Three (03) undated cheques oI marked up amount (Principal
Mark-up) Any additional guarantee, iI required as per the contents
oI the approval letter.
The Bank of Punjab
BOP ATM / Debit Card
The Bank of Punjab
BOP Apna Cash Card is an ATM pIus Debit
Card.
1. The front of the card will have the following matter on it:
Card Holder`s Name
International Bin Number (6 Digits - XXXXXX)
Card Number (YYYYYYYYYY) (total IMDCARD num has to be 16
2. The back of the card will have:
Magnetic Strip
Signature Panel
Conditions oI Usage
M-Net and M-Net logo
1. Service
The BOP Debit Card holders will be able to transact at any of the 1000 + Merchants across the
country. The following services can be utilized at the Point of Sale (POS) terminals:
1.1.Purchasing
Your BOP Debit Card can be used in place of cash at all outlets where the M-Net logo is
displayed. This is a service which lets you pay directly from your account without using cash.
When a payment is made through the debit card, your account is directly debited.
1.2.BOPance Enquiry
The Point of Sale (POS) terminal also lets you view your BOPance of all the linked accounts to
your card.
2. Sites
BOP Debit Card Holders can transact at any of M Net merchant locations country wide. These
POS terminals are available at Shopping Malls to Petrol Stations. The list of country-wide
merchants is attached as Annexure . All merchants who display the M-Net logo will accept the
BOP Debit Card.
3. Plastic with M-Aet logo
All new plastic that will be ordered from now on will bear the M-Net logo. The existing plastic will
be used for customers who want the debit card facility, as the cost of the wastage of scrapping
our existing stock is too high. Merchants will have to be informed to accept all BOP plastic,
irrespective of M-Net logo. New order of plastic will bear M-Net logo.
4. Customer Eligibility
The Bank of Punjab
The ATM Card will be issued to Savings and Current Account holders who maintain their
accounts with the bank and in terms of the account opening documentation are authorized to
operate the account singly or jointly.
For Joint Accounts, which are operated on the signature of any one of the account holders, ATM /
Debit card can be issued. The joint accountholders will be jointly & severally liable for any
transactions processed by the use of the cards and the terms and conditions as laid down shall
be jointly & severally binding on all account holders.
Cards wiII not be issued on the foIIowing accounts:
i. Any non-personal account i.e. Companies, Organizations, Trust Account,
Government account and Collection account etc.
ii. Dormant, inoperative, blocked or restricted accounts.
iii. Accounts with 'NIL BOPance.
iv. Term Deposit Accounts.
v. NIDE Accounts. (Non Interest Demand Einance Accounts)
vi. Accounts requiring thumb / photo Ior operation (illiterate accounts)
ATM/Debit cards can only be issued on local currency accounts.
The Bank of Punjab
Smart Cash PersonaI Loan
The Bank of Punjab
About Scheme 'BOP Smart Cash Personal Loan Scheme is personal DF facilitv for
meeting personal needs & repavable through monthlv instalments.`
Eeatures
Einance
Amount
Equivalent to 25 Net take home salaries/ income, maximum limit
Rs.500,000/-
Minimum amount Maximum amount
Rs.50,000/-
Rs.500,000/-
(Rs.1.0 Million on selective basis)
Mark-up Rate
Tenure Mark-up Rate
1 year
Avg. 1 Year ask side KIBOR 900 BPS
2 Years
3 & 5
Years
Charges
Details
Processing Charges
Rs. 500/- per case
E-CIB Charges
Rs.125/- per case Upto Rs. 100,000/-
Rs.200/- per case over Rs. 100,000/-
Actual
Repayment In 12 - 60 Equal Monthly instalments.
Late Payment
Penalty
3 on the amount oI instalment per day Ior the days the amount remains
overdue Max. Rs. 500/- Cheque Dishonouring Charges (as per schedule
oI charges oI the bank)
Eligibility
Criteria ELIGIBILITY CRITERIA FOR GOVT. /ARMED
FORCES/BOP EMPLOYEES
Minimum Take Home Salary is Rs. 10,000/- The condition may
be relaxed to Rs.5,500/- subject to IulIilment oI Iollowing
conditions; a. Maintaining Salary Account with BOP Irom last six
The Bank of Punjab
months. b. Departmental Undertaking c. Two Personal Guarantees
oI senior grade employee but not less than grade 16 oIIicer.
(Einancial commitment oI Guarantor should be established
through E-CIB report & Salary Slip/Employer CertiIicate/Bank
Statement oI salary account showing monthly credits oI salary
amount).
Permanent Employee with Minimum 03 Year oI job Experience
including 01 Year with current employer. (01 Year Ior BOP
Employees including probation period).
departmental undertaking / one Personal Guarantee oI senior
grade but not less than grade 16 oIIicer, shall be obtained Ior
contractual employees (Einancial commitment oI Guarantor
should be established through E-CIB report & Salary
Slip/Employer CertiIicate/Bank Statement oI salary account
showing monthly credits oI salary amount).
Have valid CNIC
ELIGIBILITY CRITERIA FOR PRIVATE EMPLOYEES
Have valid CNIC
ELIGIBILITY CRITERIA FOR SEP
Age between 25 and 57 Years (57 Years at maturity oI Iacility)
Minimum 03 Years in current proIession.
Minimum Monthly Net Income is Rs.20,000/- (Established
Have valid CNIC
Documents
Required FOR GOVT. /ARMED FORCES/BOP EMPLOYEES
Copy oI valid CNIC
The Bank of Punjab
specimen) exempt Ior BOP employees.
Copy oI Contract Letter (Ior contractual employees)
transIerred). (exempt Ior BOP employees)
address) (exempt Ior BOP employees)
FOR PRIVATE EMPLOYEES
Copy oI valid CNIC
specimen)
transIerred).
address)
Income Tax Returns oI last two years.
FOR SELF EMPLOYED PROFESSIONALS
CNIC
Bank Statement Ior last 01 Year oI Business Account.
Income Tax Returns oI last two years.
business address.
03 years.
Copy oI ProIessional Degree
Security Departmental Undertaking (waived Ior Govt. OIIicers oI grade 17
& above and executives oI corporate clients)
Two Personal Guarantees oI employees oI equivalent/senior
grades to the client or where no equivalent/senior grade oIIicer is
available then Personal Guarantee oI two oIIicers oI grade 17 or
above shall be obtained. (Einancial commitment oI Guarantor
should be established through E-CIB report & Salary
The Bank of Punjab
Slip/Employer CertiIicate/Bank Statement).
n cases where the departments show intention to stand as guarantor, an
agreement shall be signed between the concerned Department/Organization
and Bank (through Regional Chief) whereby the Organization shall undertake to
deduct the amount due at its own and then deposit the same into client's
account.
THREE undated cheque Ior the Iull marked up amount i.e
(Principle Mark-up oI 01 year)
LiIe Insurance oI Borrower.
Post Dated Cheques
Any additional guarantee, if required as per the contents of the approval letter.
The Bank of Punjab
Karobar Barhao Scheme
The Bank of Punjab
The Bank of Punjab
Live Stock DeveIopment
Scheme
Purpose:
Provision of financial facility for purchase of animals (Milk & meat production, cattle farming,
Poultry Farming and Fish farming) to the farmers and non farmers (those who have their own live
stock farm/fish farm for commercial purposes)
Eligibility:
Sufficient experience to handle Dairy Farm, Cattle Farm, Goat Farm, Poultry and Fish
Farming.The persons who have their self owned Dairy Farms for production of milk on
commercial basis).The applicant should be having adequate arrangements to sell out the
products properly e.g. supply contract with milk processing company.
Amount:
80% of cost of animals (Maximum facility can be granted upto 50% of forced sale value of
property).
Security:
Leased Animals (receipt will be issued in the name of Bank).Charge on Agriculture Land through
Agri Pass Book OR Charge on urban immovable property through equitable/registered mortgage.
The property will be cleared by Bank's approved legal counsel and will be assessed by Bank's
and PBA's approved surveyor. Liquid security in the shape Bank's Fixed Deposited
Receipts/DSC/NSC or Regular ncome Certificates.
The Bank of Punjab
Margin on Security:
50% margin on landed property (Agri/Urban). 25% margin in case of liquid security
Insurance:
The Lessee will arrange comprehensive insurance of Animals. n case of Poultry and Fish
farming Borrower will have to arrange comprehensive insurance of poultry and fish stock himself
form Bank's approved A rated company life assurance of lessee under the Bank's charge.
Mark-up:
18% Per Annum
Period:
5 Years
Repayment:
20 equal quarterly installments (within Iive years).
The Bank of Punjab
Kisan Dost Aabiari Scheme
Purpose:
Provision of financial facility to the farmers for installation of Tube well, turbines etc.
Eligibility:
Resident Self Cultivator having Agriculture Land minimum 5 acres and maximum 50 acres.
Amount:
Maximum Rs 500,000/-.
Equity:
20% of the cost of project will be paid by the borrower.
Security:
1. Lease Assets i.e. Engine, Tube well and other related implements (The vendor will issue
receipt in the name of Bank).
2. Charge on Agriculture Land through Agri. Pass Book.
3. One personal guarantee of reputable person acceptable to Bank.
4. Two written satisfactory market checking reports.
Margin on Collateral Security:
50% Margin on Agri land assessed by Surveyor. 25% margin Agri land as per value in revenue
record. The maximum amount of Finance will be allowed upto 75% of the Oast Bai Value of land
(Oast Bai is verified by Revenue Officer)
Insurance:
The Lessee will arrange comprehensive insurance of implements/assets. Life assurance of
lessee under the Bank's charge.
Mark-up:
18% Per Annum
Repayment: 10 equal halI yearly installments (within Iive years).
The Bank of Punjab
Kissan Dost Green House Finance FaciIity
At present, the agriculture business is the most rewarding avenue of the Bank of Punjab. Due to
the increasing demand of off seasoned vegetables, we are rolling out a special scheme by the
name of "GREEN HOUSE FNANCE FACLTY for farmers who intend to establish Green House
to grow off seasoned vegetables.
Purpose
The purpose of this loan is to encourage the farmers to establish green houses. This will also
curtail the shortage of vegetables. Moreover the rate of vegetables will also decrease when they
are in abundance in the markets.
1ypes of Green House
There are two types of green houses i-e Metallic Construction & Bamboo Construction
Eligibility
The applicant should be a genuine grower and should have a suitable land to establish a Green
house. The applicant should not be a defaulter of any other Bank and the land under cultivation
should be free from any encumbrance.
Aature & Amount of Facilities
MEDIUM TERM DEMAND FINANCE FACILITY
For Metallic Tunnels: For purchase of iron/steel, cement, concrete, polythene, mulching shopper,
green net For Bamboo Tunnels:
For purchase of bamboo, cement, concrete, polythene, mulching shopper, green net
MEDIUM TERM LEASE FINANCE FACILITY
For installation of Drip rrigation System for both Metallic & Bamboo Tunnels:
SHORT TERM FINANCE FOR RUNNING EXPENSES
Running finance facility for the purpose of purchasing seed/inputs and other running expenses
such as farm power, labor etc.
Disbursement:
n case of Medium Term Demand Finance Facility the loan will be disbursed as 30% for base
structure & for purchase of raw material, 40% for construction of green house/tunnels and rest of
30% for finishing purpose. Each tranche will be released after proper verification by Executive
ncharge Agriculture & respective ACO of the Branch. n case of Medium Term Lease Finance
The Bank of Punjab
Facility the payment will be made directly to the vendor after proper verification of leased asset. n
case of Short Term running Finance Facility the initial disbursement will be made as and when
required by the applicant.
Amount
70% of the cost of construction assessed by Bank's approved surveyor according to the proposed
plan of construction n case of lease finance 80% of the purchase price of leased assets. n case
of Running Finance, up to 80% of total running expenses.
Security
I. PRIMARY
Leased assets in case of lease finance facility (receipt will be issued in the name of bank).
Hypothecation of vegetables, equipment etc. in case of running finances facility.
II COLLATERAL
Charge on agriculture land through Agri. Pass book. OR Charge on urban immovable property
through equitable/registered mortgage. the property should be cleared by the banks approved
legal counsel and will assessed by the Banks and PBAs approved surveyor. OR Liquid security
in the shape of Banks Fixed Deposited Receipt/DSC/NSC or Regular ncome Certificates.
One personal guarantee of a reputable person. ACO along with Regional Chief can waive this
condition if they deem the borrower to be credit worthy.
Margin on Security
N CASE OF OAST BA:
The maximum amount of Finance will be allowed upto 75% of the Oast Bai Value of land (Oast
Bai is verified by Revenue Officer)
N CASE OF THE FORCED SALE VALUE F EVALUATED BY PBA /BANK'S APPROVED
SURVEYOR
Maximum Amount of Finance will Be 50% Of The Forced Sale Value, Evaluated By PBA/Bank's
Approved Surveyor.
Insurance
Comprehensive nsurance of the Leased/Hypothecated stock at borrowers cost assigned to BOP.
Life assurance of the borrower under the bank's charge assigned to BOP.
Mark up
For Demand Finance 18% Per Annum
The Bank of Punjab
For Lease Finance 18% Per Annum
For Running Finance 18% Per Annum
Recovery of Mark up
n case of lease finance & Demand Finance the mark up will be recovered along with the
installment on quarterly basis. n case of Running Finance Facility, the mark up will be recovered
on quarterly basis.
Jalidity
Running Finance to be settled in One Year along with mark up from the date of initial
disbursement of Running Finance. Five years in case of Lease Finance Facility. Five years in
case of Demand Finance Facility.
Repayment
20 equal quarterly installments (Principal and Mark up) in case of Lease/Demand Finance
Facility. Running Finance to be settled once a year along with total mark up.
The Bank of Punjab
PRICE
"1he amount of money the customers pay for the product of a company".
BOP provides diIIerent products and services to its customers, that have been discussed
in previous section. Pricing oI products means the commission to be paid by the customer
in return oI services provided by the bank. The commission paid Ior the services mainly
includes:
Mark up/ interest
Bank charges
Eees and bank commission etc.
These charges and commissions are prescribed on Schedule oI Bank Charges (SOC) that
keeps on changing time-to-time, and issued by the bank periodically (generally aIter six
months).
There has been a lot oI controversy regarding the price oI banking companies. Some
scholars argue that the mark up received by the bank is rent Ior capital that is used by
others. On the contrary, some call it purely Riba. This however is a very controversial
and sensitive issue and I would like not to give any comment on it.
PROMOTION
"All activities that a company undertakes to communicate and promote its products".
This is an age oI competition. Numerous organizations are providing Iinancial services to
the customer. These days every one is Iacing pressure oI competitors. In this world oI
growing competition, the only way to survive and grow, Ior an organization, in the
market place is the proper marketing and promotion oI its products. Same is the case with
banking companies. There is large number oI Ioreign and local banks working in the
country and it has been noticed that they are emphasizing much on their marketing
strategies. In this scenario, the key Ior a bank to succeed and attract its customers is
adequate promotion oI its products &services. The bank can attract and retain its
customers through:
The most prominent and important way to attract a large number oI customers is the
advertisement oI bank and its products/services. Punjab Bankhas adopted diIIerent
approaches Ior the accomplishment oI this purpose. Eor example, Iormation oI Punjab
Bank Lahore branch is a major step taken by BOP. It not only provides a source oI
recreation to the people but it serves as a major source oI marketing Ior the bank. Due to
Punjab Banl assistance Ior the construction oI Iountain in Liberty Market Square, it is
named as Punjab Bank Square. BOP Square, Ior being situated in such a business and
commercial area has its unusual importance and has resulted into banks promotion.
The Bank of Punjab
Construction oI Gul Barig as main branch Lahore is going to be the revolutionary step Ior
BOP. It would not serve just as a main branch only, but it would also be a great source oI
ever growing marking and promotion oI bank.
BOP issued its own rupee travellers cheques with highest denomination during the course
oI my internship. I have seen some coloured advertisements oI
However, one drawback or shortcoming is that, BOP has Iormulized a lot oI products and
services Ior its customers, even more than other commercial banks, but any advertisement
on electronic media has not been seen. Since, BOP s major competitor Union Bank
Limited has started large media campaign, so keeping in view these threats, Punjab Bank
should emphasize more on its advertisement.
Along with the advertisement, the bank is providing personal services to its clients with
maximum security as other banks provide. Bank also encourages the public relation
policy oI marketing.
Some brochures and promotional material has been printed but it is distributed mainly
through the clients who visit the branch Ior their day-to-day business or through the
customers who come to get inIormation about new schemes launched by the bank.
PLACEMENT
EVERYTHING WE DO IS EOR YOU 39
"1he activities a bank undertakes to make products and services easily available or
accessible to the customers".
Bank oI Punjab objective has been to expand its branch network to meet clients needs.
Bank is well positioned and geographically poised, to cater Ior increased business
demands, Irom its existing potential clientele. During last year under review, BOP
opened 8 new branches and presently it has 23 branches, spread all over Punjab covering
major business centers and principle cities. Bank plans to add more branches to his
growing network in the ensuing years.
At present, BOP has opened all its branches at commercial and business areas or near to
commercial areas so that the customers or clients Iace no problem in reaching the bank.
Head OIIice oI BOP is situated in Lahore. The detail description oI its branches is as
Iollows:
The Bank of Punjab
Head office of BOP
The Bank of Punjab
Karachi / Quetta Region Islamabad Region
Lahore Aorth Region Lahore South Region
Rawalpindi Region Faisalabad Region
Gujranwala Region Gujrat Region
Multan Region Bahawalpur Region
D.G. Khan Region
The Bank of Punjab
The Bank of Punjab
STRENGTHS
ensure a consistent and convenient customer experience.
structured and syndicated Iinancing arrangements, working capital
Iinance, Iinancing oI international trade, consumer credit, small business
loans, credit cards and ATM cards.
-
talent hiring, proIessional grooming, requisite training and merit based
reward system.
hospitalization plan, home loan insurance have added new dimensions to
the staII-care policy and motivated them to out-perIorm competitors.
ompetitive advantage over all domestic players by virtue
oI its leadership in technological innovations.
Bank has Iully automated transaction-processing systems Ior back-oIIice
support.
Bank's branch network is connected on-line real-time and customers have
access to oII-site as well as on-site ATMs, all over Pakistan.
Bank also is pioneer in e-commerce venture in Pakistan through a
major retail distributor.
Erom a humble beginning with just 10 branches in 1993, today bank
enjoys a network oI 242 outlets, spread across the country. A network
oI selI-service ATMs supports these outlets.
The Bank of Punjab
WEAKNESSES
Bank is providing credit Iacilities only to the urban areas not too much
attention is paid to the rural areas.
As Pakistan is agriculture country but no special schemes Ior the agri- loans.
Bank is not giving emphasis on the small-scale businesses, which are
large in number in Pakistan.
There is enormous diIIerence between the bank-lending rate and
return on deposits.
The procedure and documentation while sanction loan is thorny, which is
a barrier Ior advances.
Bank gives targets to employees Ior deposits due to this reason they
pay more attention to IulIil these targets to save their jobs. This distracts their
attention Irom their duties.
No job security is there Ior the employees, and no union exits to secure them.
BOP has only agency arrangements with the Ioreign banks, no
branch exists outside the Pakistan, while their main competitors have their
own branch network outside the Pakistan.
To improve the services and to remove the problems oI customer the
bank has no customer complaint department.
Limited locker Iacility is there, which does not IulIil the requirements oI
customer and charges oI lockers are also very high.
The Bank of Punjab
OPPORTUNITIES
Bank has a small branch network so The Bank oI Punjab can increase its
turnover though increase the number oI branches.
Bank has no Ioreign branches so it should open its branches outside the
country especially in U.K, U.S.A and in U.A.E.
Eacilities like Iinancing oI housing should also be oIIered to general
public especially in the urban areas.
In agrarians cities like Rahim Yar Khan there is a potential Ior
giving credit Iacilities to Iarmers.
To increase its advances bank should Iocus small scale industries and
choose one among them and then a special scheme oI lending should be
introduced Ior that particular small scale industry.
THREATS
Law and order situation in Pakistan is Iaulty that is why people are not
conIident to invest anywhere.
The markets rates are now at extremely low levels, with very little chance
oI their going up during the rest oI the year. The low interest rate means
low proIits Ior the banks.
Saving rate in Pakistan is very low i.e.15 as compared to 30 in
China and 40 in Malaysia.
The Bank of Punjab
As the banking procedures are complicated that is why general
public takes interest into other options oI investments like in shares oI
companies and in Term Einance CertiIicates.
Now the world is a global village so competitors may rise Irom
anywhere in the world at anytime.
In near Iuture the world is going to be Iree trade zone so the concept oI "survival oI the
Iittest" will be in action.
AIter the 11 September incident and due to terrorist activities in
Pakistan the economy is moving very slow. It means less investment and as
a result low loan demands.
High rate oI taxes on banking companies.
SBP have a heavy penalty on banks Ior violating the Prudential
Regulation. So it requires greater care while advancing.
Increasing ATM trend among the banks also requires attention oI the
management to this side.
The Bank of Punjab
PEST ANALYSIS
PEST analysis oI any industry investigates the important Iactors that aIIect the
industry and inIluence the companies operating in the sector. PEST stands Ior Political,
Economic, Social and Technological analysis. The PEST Analysis is a tool to analyze the
Iorces that drive the industry and how those Iactors can inIluence the industry.
POLITICAL
ECONOMICAL
SOCIO CULTURAL
TECHNOLOGICAL
The Bank of Punjab
SOCIOCULTURAL
CHANGES IN
LIEE STYLE
LITERACY RATE
DEMOGRAPHIC
OE LARGE
POPULATION
SHIET TOWARDS
THE NUCLEAR
EAMILY
POLITICAL
GOVERNME
NT POLICY
& BUDGECT
BUDJECT
MEASURES
MONATORY
POLICY
EDI LIMIT
TECHNICAL
TECHNOLOGY IN
BANKS
CORE BANKING
SOLUTIONS
ATM
INTERNATE
I.T SERVES AND
MOBILE
BANKING
Organization
ECONOMICAL
GDP
MONSOON
INELATION
SAVINGS &
ACCOUNTS
AGRICULTURE
CREDIT
INTEREST RATES
RAISING LIVING
STANDRED
DISPOSABLE
INCOME
The Bank of Punjab
POLITICAL FACTORS
Government policies aIIect the banking sector. Sometimes looking into the
political advantage oI a particular party, the Government declares some measures to their
beneIits like waiver oI short-term agricultural loans, to attract the Iarmer`s votes. By
doing so the proIits oI the bank get aIIected. Various banks in the cooperative sector are
open and run by the politicians. They exploit these banks Ior their beneIits. Sometimes
the government appoints various chairmen oI the banks. Various policies are Iramed by
the SBP looking at the present situation oI the country Ior better control over the banks
FOCUS ON REGULATIONS OF GOVERNMENT
Government aIIects the perIormance oI banking sector most by legislature and
Iraming policy .government through its budget aIIects the banking activities
securitization act has given more power to banking sector against deIaulting borrowers.
MONETARY POLICY
Bank Rate: The Bank Rate has been retained unchanged
Repo Rate It has been reduced under the Liquidity Adjustment Eacility (LAE)
Reverse Repo Rate : It has been reduced under LAE by 25 basis points Irom 3.5 to
3.25 with immediate eIIect. RBI has retained the option to conduct overnight or longer
term repo/reverse repo under the LAE depending on market conditions and other relevant
Iactors.
FDI LIMIT
The move to increase Eoreign Direct Investment EDI limits to 49 percent Irom 20
percent during the Iirst quarter oI this Iiscal came as a welcome announcement to Ioreign
players wanting to get a Ioot hold in the Indian Markets by investing in willing Indian
partners who are starved oI net
worth to meet CAR norms. Ceiling Ior EII investment in companies was also increased
Irom 24.0 percent to 49.0 percent and have been included within the ambit oI EDI
investment
The Bank of Punjab
ECONOMIC FACTORS
Banking is as old as authentic history and the modern commercial banking are
traceable to ancient times., banking has existed in one Iorm or the other Irom time to
time. Every year SBP declares its 6 monthly policy and accordingly the various measures
and rates are implemented which has an impact on the banking sector. Also the Union
budget aIIects the banking sector to boost the economy by giving certain concessions or
Iacilities. II in the Budget savings are encouraged, then more deposits will be attracted
towards the banks and in turn they can lend more money to the agricultural sector and
industrial sector, thereIore, booming the economy. II the EDI limits are relaxed, then
more EDI are brought in India through banking channels
GROWING ECONOMY / GDP
It is great news that today the service sector is contributing more than halI oI the
Indian GDP. It takes PAKISTAN one step closer to the developed economies oI the
world. Earlier it was agriculture which mainly contributed to the GDP. The Pakistani
government is still looking up to improve the GDP oI the country and so several steps
have been taken to boost the economy. Policies oI EDI
LOW INTEREST RATES
SBP controls the Interest rate, which is based on several monetary policies.
Recently SBP has reduced the interest rate which stimulates the growth rate oI banking
industry. Call money rates (borrowing & lending) were in the range oI 1.50/3.47 per cent
as compared with 5.25/11.00 per cent on the corresponding date oI last year
INFLATION RATES
InIlation represents a rise in general level oI prices oI goods and services over a
period oI time. It leads to erosion in the purchasing power oI money. Resultantly, each
unit oI currency buys Iewer goods and services
DiIIerent Iiscal and monetary policies have curbed the InIlation rate. To Iight against the
slowdown oI the Economy, Government oI Pakistan & SBP took many Iiscal as well as
monetary actions. Clubbed with Iiscal & monetary actions, decreasing commodity prices,
decreasing crude prices and lowering interest rate, we expect that Indian Economy could
again register a robust growth rate in the year 2009-10
The Bank of Punjab
SAVINGS AND ACCOUNTS
As stated earlier Pakistan continues to remain one oI the high savings economies
among the emerging market economies. Gross Domestic Savings (GDS) oI the Pakistan
economy constitutes savings oI public, private corporate and household sectors. In the
recent period the high growth perIormance oI the Pakistan economy is driven by rise in
savings
AGRICULTURE CREDIT
Agriculture has been the mainstay oI our economy with 70 oI our population
deriving their sustenance Irom it. In the recent past, the sector has recorded a growth oI
about 4 per annum with substantial increase in plan allocations and capital Iormation in
the sector. The target Ior agriculture credit Ilow Ior the year 2009-10 is being set at
Rs.3,25,000 crore. To achieve this, I propose to continue the interest subvention scheme
Ior short term crop loans to Iarmers Ior loans upto Rs.3 lakh per Iarmer at the interest rate
oI 7 per annum. Eor this year, the government shall pay an additional subvention oI 1
as an incentive to those Iarmers who repay their short term crop loans on schedule
SOCIO CULTUREAL FACTORS
Socio culture Iactors also aIIect the business. They show in which people behave
in country. Socio-cultural Iactors like taboos, customs, traditions, tastes, preIerences,
buying and consumption habit oI people, their language, belieIs and values aIIect the
business. Banking industry is also operates under this social environment and it is also
aIIect by this Iactor.
These Iactor are changing continuously people`s liIe style, their behavior, consumption
pattern etc. is changing and also creating opportunities and threat Ior banking industry.
There are some socio-culture Iactors that aIIect banking in India have been analyzed
below.
The Bank of Punjab
SHIFT TOWARDS NUCLEAR FAMILY
Attitude oI people oI Pakistan is changing. Now, younger generation wants to
remain separate Irom their parents aIter they get married. Joint Iamilies are breaking up.
There are many reasons behind that. But banking sector is positively aIIected by this
trend. A Iamily need home consumer durables like Ireeze, washing machine, television,
bike, car, etc. so, they demand Ior these products and borrow Irom banks. Recently there
is boost in housing Iinance and vehicle loans. As they do not have money they go Ior
installments. So, banks satisIy nuclear Iamilies wants.
CHANGE IN LIFE STYLE
LiIe style oI Pakistan is changing rapidly. They are demanding high class
products. They have become more advanced. People want everything car, mobile, etc..
what their Iore Iather had dreamed Ior. Now teenagers also have mobile and vehicle.
Even middle class people also want to have well Iurnished home, television, mobile,
vehicle and this has opened opportunities Ior banking secter to tap this change. Every
thing is available so it has become easy to purchase anything iI you do not have lump
sum.
POPULATION
Increase in population is one oI the important Iactor, which aIIect the private
sector banks. Banks would open their branches aIter looking into the population
demographics oI the area. Percentage oI deposit in any branches oI banks depends upon
the population demographic oI that area. About 70 oI population is below 35 years oI
age. They are in the prime earning stage and this increase the earning oI the banks.
Deposits showed a subdued growth during 2004-05.Income distributions also aIIects the
operations and overall business oI private sector banks.
LITERACY RATE
Literacy rate in Pakistan is very low compared to developed countries. Illiterate
people hesitate to transact with banks. So, this impacts negatively on banks. But there is
positive side oI this as well i.e. illiterate people trust more on banks to deposit their
money; they do not have market inIormation. Opportunities in stocks or mutual Iunds.
So, they look bank as their sole and saIe alternative
The Bank of Punjab
TECHNOLOGICAL FACTORS
TECHNOLOGY IN BANKS
Technology plays a very important role in bank`s internal control mechanisms as
well as services oIIered by them. It has in Iact given new dimensions to the banks as well
as services that they cater to and the banks are enthusiastically adopting new
technological innovations Ior devising new products and services.
ATM
The latest developments in terms oI technology in computer and telecommunication have
encouraged the bankers to change the concept oI branch banking to anywhere banking.
The use oI ATM and Internet banking has allowed anytime, anywhere banking`
Iacilities. Automatic voice recorders now answer simple queries, currency accounting
machines makes the job easier and selI-service counters are now encouraged. Credit card
Iacility has encouraged an era oI cashless society. Today MasterCard and Visa card are
the two most popular cards used world over. The banks have now started issuing
smartcards or debit cards to be used Ior making payments. These are also called as
electronic purse. Some oI the banks have also started home banking through
telecommunication Iacilities and computer technology by using terminals installed at
customers home and they can make the balance inquiry, get the statement oI accounts,
give instructions Ior Iund transIers, etc.
IT SERVICES & MOBILE BANKING
Today banks are also using SMS and Internet as major tool oI promotions and giving
great utility to its customers. Eor example SMS Iunctions through simple text messages
sent Irom your mobile. The messages are then recognized by the bank to provide you
with the required inIormation. All these technological changes have Iorced the bankers to
adopt customer-based approach instead oI product-based approach. Technology
advancement has changed the Iace oI traditional banking systems. Technology
advancement has oIIer 24X7 banking even giving Iaster and secured service.
CORE BANKING SOLUTIONS
It is the buzzword today and every bank is trying to adopt it is the centralize banking
platIorm through which a bank can control its entire operation the adoption oI core
banking solution will help bank to roll out new product and services.
The Bank of Punjab
HR ACTIVITIES
The Bank of Punjab
Human Resource Department:
This Department does all the activities related to Human Resources (Hr) and
Personnel Management like job Analysis, Job Design, job Description, job
Redesign, job SpeciIication, Recruitment (is the process oI Iinding and attracting
capable applicants Ior employment through Advertising, Employee reIerrals,
Private Placement Agencies etc.), Selection by written tests and interviews,
Orientation, Training, Career Planning, PerIormance Appraisal (employee
perIormance and accountability), Compensation and Protection, Union-
Management Relations etc. It also involves in the Iollowing activities:
TransIers & Postings
Mandatory Leaves and its observance.
StaII leaves and other related staII matters
Goals oI all StaII
Monthly Statement oI StaII
Disciplinary Action Cases
Cases Retired employees & its Correspondence
Complaints and its correspondence
The Bank of Punjab
Activities I performed In THE BANK OF PUNJAB
During My Internship.
On the very Iirst day our manager Mr. serwer Malik guides me about the rules and
regulations oI the bank.
AIter this the bank oIIicer Mr. Shakeel guides me about the deposit clip to Iill.
And also guides me about the use oI deposit clip. AIter this guides I starts the
deposit clips to Iill oI diIIerent customers.
Then I get the inIormation about the account open in the bank Irom the bank
oIIicer mr. Anwar. But I cannot perIorm it because it was not allowed to the
internees in the bank.
I also get the inIormation about the process to issue the Demand DraIt. And Iill
the Iorm oI Demand DraIt Ior the related customers.
I also get perIormed the activity to Iill the perIorma oI Bank oI Punjab on line.
I also made the collections oI the branch Irom diIIerent branches oI the other
bank.
I also issued the cheque books to the customers.
I helped many times to our credit oIIicer to maintain the necessary papers oI
diIIerent account holders beIore the issuance oI credit.
I daily perIormed the activity to maintain the Signature Specimen card in
systematically.
The Bank of Punjab
MY LIMITATION IN THE BANK
1. The work on the computers oI the bank was not allowed to me.
2. I cannot personally debit and credit any account.
3. Work on the cash counter was not allowed to me.
4. Show the secret accounts oI the diIIerent customers was also prohibited
during my internship.
5. Issuance oI Demand draIt to the customers oI the Bank personally was not
allowed to me.
6. Show bad behaviour with any customer oI the bank.
7. Missguide any customer about the bank system.
The Bank of Punjab
The Bank of Punjab
Deposits
Advances
Years Deposits (Rs in Millions)
2005 17101
2006 15019
2007 17028
2008 19034
2009 23767
2005 5612
2006 5161
2007 6144
2008 5772
2009 6621
The Bank of Punjab
Investment
Capital & Reserves
2005 6581
2006 4991
2007 7866
2008 5970
2009 8295
2005 1795
2006 1823
2007 2180
2008 2391
2009 2313
The Bank of Punjab
Total Assets
Profit
2005 19886
2006 18215
2007 21275
2008 24802
2009 29532
2005 123
2006 28
2007 356
2008 222
2009 283
The Bank of Punjab
Growth of Shareholders
2005 5389
2006 5389
2007 5896
2008 6436
2009 5891
The Bank of Punjab
The Bank of Punjab
Balance Sheet
The Bank of Punjab
Horizontal Analysis
The Bank of Punjab
The Bank of Punjab
ProIit & Loss A/c
The Bank of Punjab
Horizontal Analysis
The Bank of Punjab
The Bank of Punjab
Vertical Analysis oI Balance Sheet
The Bank of Punjab
Vertical Analysis OI ProIit & Loss A/c
The Bank of Punjab
Comparative Financial Statement
Comparative Iinancial statement present Iinancial inIormation Ior the current period and
one or more past periods. In comparative analysis the statements predict about the
movements and trends oI the business with respect to past years, whether there is increase
in the business activities or decrease. It may also help to comments about the Iuture
expectations oI the ways in which the Iinancial and operating perIormance will go.
There are two type oI comparative Iinancial statement analysis.
Horizontal Analysis
Comparison oI two or more years` Iinancial statement is called Horizontal Analysis.
It shows the changes between years both in rupee and percentages Iorm. So in this
way it Iacilitates the analyst to predict about the ways iI the business in which it is
going. It emphasis the proportional relationship between the reporting periods, rather
than with in the reporting period.
In this report I shall use this type oI comparative Iinancial statement analysis to
analyze the perIormance oI The Bank oI Punjab.
Trend Percentage Analysis
Trend percentages state the several years` Iinancial data in terms oI a base year. The base
years equals to 100 with all other stated as some percentage oI this base year. In this
way it predict good and easy way inIormation about the business activities. By simple
looking at these percentages one can see the ways in which the business in going on
whether the business is making perIormance or not.
Comments on Comparative Analysis of 2009-2008
The results that I have perceived Irom the Comparative Analysis oI Balance Sheet and
ProIit & Loss Account oI 2009-08.
From Balance Sheet
* The current assets increased by 21, this is mainly due to a higher increase in
Balance with other Banks i.e. 139but cash is reduced which is not good Ior
the Short term solvency oI the bank. Account receivable also increases as
compared to last year but other assets decrease i.e. 33.
* Total Assets are increased by 23.7.
* Eixed Assets are increased by 43.
* The increase in Balance with other banks by 139 is a good sign Ior the
The Bank of Punjab
short-term solvency oI the bank.
* The Account receivable is increased by 15 in this period.
As a whole total assets and total liabilities plus owner`s equity is increased by 19 which
corresponds with the increase in service revenue.
From Profit and Loss Account
* The service revenue oI the bank is increased by 1 than that oI 2008, with the
decrease oI 7 in the cost return on deposits. So service decreased less than
that oI return on deposits.
* This less decrease, service revenue than that oI return on deposits results in an
increase oI 21 oI Gross proIit.
* The other income oI the bank also increased in 2009 then that oI in 2008.
These are increased by 194.
* As the service revenue increased, the administrative expenses also increased
by 11.
* Overall proIit aIter tax also increased by 39 in 2005 then that oI 2009.
From Balance Sheet
* The current assets increased by 51, this is mainly due to a higher increase in
cash i.e. 170 but balance with other bank is reduce which is not good Ior the
Short term solvency oI the bank. Account receivable also increases as
compared to last year.
* Total Assets are increased by 23.
* Eixed Assets are increased by 8.2.
* The decrease in Balance with other banks by 1.3 is not good sign Ior the
As a whole total assets and total liabilities plus owner`s equity is increased by 23 which
corresponds with the increase in service revenue.
* The service revenue oI the bank is increased by 8 than that oI 2007
increase oI 41 oI Gross proIit.
by 26.
* Overall proIit aIter tax also increased by 64 2001 then that oI 2007.
The Bank of Punjab
The results that I have perceived Irom the Comparative Analysis oI Balance Sheet
and ProIit & Loss Account oI 2008-2009.
From Balance Sheet
* The current assets decreases by -8, this is mainly due to a higher decrease in
Balance with other Banks i.e. -82 and cash is also reduced by -31, which
is not good Ior the Short-term solvency oI the bank. Account receivable
increase as compared to last year but other assets decrease i.e. 14.
* Total Assets are increased by 10.
* Eixed Assets are increased by 8.
* The decrease in Balance with other banks by -82 is not a good sign Ior the
* The service revenue oI the bank is decreased by -9 than that oI 2009, with
the decrease oI 15 Mark up interest on deposits. So service decreased less
than that oI Mark-up Interest.
* This less decrease, service revenue than that oI mark-up on deposits results in
an increase oI 14 oI Gross proIit.
* The other income oI the bank increased highly in 2005 then that oI in 2009.
* As the service revenue decreased, the administrative expenses also decreased
by -7.
Overall proIit aIter tax also increased by 105 in 2005 then that oI 2009.
The results that I have perceived Irom the Comparative Analysis oI Balance Sheet
and ProIit & Loss Account oI 2007-2008.
From Balance Sheet
* The current assets decreases by 3.8, this is mainly due to a higher decrease
in Account Receivable but increased in Balance with other Banks i.e. 5 and
cash is also increased by 15.7 which is good Ior the Short term solvency oI
the bank.
* Total Assets are decreased by -8.4.
* Eixed Assets are also decreased by -1.2.
* The Account receivables are decreased by -62 in this period.
The Bank of Punjab
* The service revenue oI the bank is increased by 1 than that oI 2008, with the
decrease oI 14 in the cost return on deposits. So service decreased less than
that oI return on deposits.
increase oI 43.7 oI Gross proIit.
by 20.
Overall proIit aIter tax decreased by -77 in 2005 then that oI 2009.
The Bank of Punjab
The Bank of Punjab
This table and graph shows the trend oI Gross Income, proIit beIore tax, and Net
income.
The Bank of Punjab
This table and graph shows the trend oI current Liabilities, DeIerred Liabilities
and Long Term Liabilities during the period 2005-09
The Bank of Punjab
RATIO ANALYSIS
The relationship oI one item to another expressed in simple mathematical Iorm is known
as a ratio. A single ratio in itselI is meaningless because it does not Iurnish a complete
picture. A ratio becomes meaning Iull when compared with some standard. So we have
taken ratios and percentage oI the BOP based in its record oI the past Iinancial and
operating perIormance. On the Iollowing pages, I make the analysis oI the Iinancial
statements oI BOP by using related items Ior the last Iive years.
ProfitabiIity vs. Investment
Remarks.
The return on assets shows a increasing trend, which is good sign for the BOP.
Return on deposits is also not stable; in starting years it increases and then
decreases and knows again increase. This is due to an increase in deposits and
less increase in profit.
The ROE ratio of five years of BOP indicates that the profitability of the bank with
equity is increasing day by day. This looks to be very positive sign.
The Bank of Punjab
Profitability Ratios.
Remarks.
The net proIit margin oI Iive years indicates that the income oI the BOP aIter
paying its non-productive expenses is increasing year by year, which is a very good sign
Ior the bank. As I see the operating proIit oI the bank shows a increasing trend in ratio.
This shows that the earning capacity oI the bank is increasing year by year.
The Bank of Punjab
Earning Per Share
Remarks:
Earning oI BOP shows the increasing trend. This shows that the earning capacity
oI a single share is increasing and shareholders are earning increase every year. This is
very good sign Ior BOP. This ratio should be as high as possible because it has a great
importance Ior an investor to invest in the Bank oI Punjab.
Regulatory Ratios:
Remarks.
Advances to deposits ratio oI The Bank oI Punjab shows that the portion
oI loan in total deposit oI the bank is not stable, 1st three year Irom 2005 to 2007 increase
then decrease. It means that the credit (advances) circulation oI the bank has Iallen Irom
36 to 28 during the last Iive years, which is a not good sign. And the cash to deposits
ratio is also decrease Irom 42 to 12.
The Bank of Punjab
Capital adequacy Ratios:
Remarks:
This ratios is showing increasing trend, in 2009 it decreased. This means that deposit oI
the banks are decreased in 2009 and assets are also decreased in 2009, which is not good
Ior the Bank oI Punjab.
The Bank of Punjab
Efficiency Ratios:
The Bank of Punjab
Suggestions & Recommendation
Survive in the Market
The bank should not relay on its present sources and Iacilities but also it should establish
new ways oI acquiring, managing and sharing market inIormation to survive in the
industry and to earn proIits.
Computer Specialis
The bank should increase the computer specialist at branch level.
Customer Compliant Department
The bank should improve the services and remove the problems oI customer by making a
vast customer complaint department.
Locker Facility
The bank should increase locker Iacility and decrease the charges oI lockers.
Security Measurement
Bank has low security measurement in branches. Bank should increase the number oI
guards and other technical security tools.
Improve and Update Website
The Bank should improve and keep the up to date inIormation on web site.
Hire New Talent
Instead oI preIerring the old employees oI the other banks, management should hire new
and well-educated talent. This will contribute to the long-term beneIits oI the bank.
Credit Policy
Credit policy should cover both the rural and as well as urban areas. Credit Iacilities
should be enhanced to small-scale businesses.
Bonus
Employees who perIorm extraordinary and achieve more than their targets should be
given bonus.
The Bank of Punjab
Conclusion
The Bank oI Punjab is contributing a lot towards the industrial development and
capital Iormation in the country. As it is exhibit Irom the data regarding the
bank`s Iinancial perIormance as shows in the Iinancial perIormance as shows in the
Iinancial analysis, that bank is sharing major banking business oI the country.
Eurther more the policies and schemes as are introduced and carried on by the
bank are oI great source oI help in its trading and non-trading growth.
They Iacilitate trade both inside and outside the country. The Bank iI Punjab
has endeavored to remain in the IoreIront oI modern Iinancial institutions
and has consistently shows tremendous growth in all area oI its activity.
However aIter scheduling, due to its emphasis on consolidation and controlled
lending, the growth oI proIit has somewhat declined.But the bank`s perIormance is
in line with its set goals.
The policies oI the bank are uniIorm and going very smoothly. The employees are given all
the possible Iacilities and generous compensation. In return employees are stressed Ior their
best eIIiciency. Merit policy prevails in all the activities oI the bank. Bank
Management has studied the administrative policies oI all other banks, and all their
problems and drawbacks are planned to be avoided. ThereIore, the policies oI the
management are progressive and proper.
The progressive approach and trend towards progress and prosperity reIlects that
bank will touch the zenith oI development and progress. The dedicated,
enthusiastic and motivated employees can bring that time even earlier.

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