The Bank of Punjab

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THE BANK OF PUNJAB MAIN BRANCH LAHORE

Internship Report
ON BUSINESS PRACTICES AT THE BANK OF PUNJAB

SUBMITTED TO: MADAM AYESHA AZIZ

SUBMITTED BY: RAO ISHFAQ AHMAD
CIIT/SOO4-MBA-028/LHR

COMSATS Institute of Information Technology Lahore

The Bank of Punjab

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ACKNOWLEDGEMENT

I am really pleased here to acknowledge the sheer efforts and extreme of numerous people, those who have provided me their relentless service in the completion of my internship report on “Business practices at The Bank of Punjab”. I would like to express my gratitude to my advisors in The Bank of Punjab who support me to under stand the working in the bank, during my internship. They really helped me a lot to gain practical knowledge about general banking and corporate banking. I am also grateful to Mr. Mazhar (Manager) and all my supervisors during internship period. Without their guidance, this exercise of internship would not have resulted in a success. Secondly I would like to thank my advisor Madam Ayesha for her assistance and inspiring attitude. I am highly obliged to my respectable advisor and state my gratitude for her valued guidance and her concern about my internship.

Rao Ishfaq Ahmad

COMSATS Institute of Information Technology Lahore

The Bank of Punjab

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DEDICATION

I dedicate this report to my loving parents without their guidance I would have gone astray.

COMSATS Institute of Information Technology Lahore

The Bank of Punjab 4 COMSATS Institute of Information Technology Lahore .

..................................32 Consumer Financing........... 11 ORGANIZTIONAL CHART................................................................28 BUSINESS PROCESS ANALYSIS..................................................................................................................................7 HISTORY.7 MISSION STATEMENT..................................................................................................................................................................................................................................................................................................................................................................................................................................66 GLOSSARY.......................14 BRANCH HIERARCHY...........7 VISION..........................................55 DUTIES.......................................................................................................................................................................................................................................................48 Trade Services.......................................................49 OBECTIVES OF INTERNSHIP.......................................................................................................................... 56 SWOT ANALYSIS........................................................................................ 16 COMPARATIVE ANALYSIS ..................................................65 CONCLUSION................................................................................................................................................................................9 MANAGEMENT............................8 BANK PROFILE........................................................23 SIX YEAR AT GLANCE.......................................................... 70 COMSATS Institute of Information Technology Lahore ......................................................................................................17 BANKING INDUSTRY .......................................................................................................................30 Online banking............................................................. 65 BIBLIOGRAPHY..............................................................................................................................................................................................................................................................1 INTERNSHIP REPORT.........................33 Agriculture Financing...........................................................................................................9 BOARD OF THE DIRECTORS..............17 CURRENT FINANCIAL POSITION OF THE BANK OF PUNJAB.............................................53 LEARNING AS A STUDENT INTERN.......................................................................................................................................................................... 67 APPENDIX...................................................................................................................................................................................................................................................................................................................................................6 INTRODUCTION TO THE BANK OF PUNJAB......................... 17 COMPARISON WITH OTHER BANKS.....................The Bank of Punjab 5 Table of Content THE BANK OF PUNJAB MAIN BRANCH LAHORE.........................................................55 NEW KNOWLEDGE ACQUIRED..........................................30 ATM Facility..........................................................................................................................62 RECOMMENDATIONS ...............................................................................................................................................................................................48 Corporate Financing......................1 EXECUTIVE SUMMARY............................................................

This report contains the Comparison of other banks with the bank of Punjab. Specially. the business process of the bank and all my learning. the knowledge related to the General Banking. during the internship period. The purpose of this exercise was to learn while working in the practical field. and the functions of the bank. This report contains detail about “business practices in The Bank of Punjab. It has really helped me observe to what extent the bookish knowledge is being practiced in real field. its history. foreign exchange and advances. current financial position of the bank. It starts with the short history and background and brief introduction about the management of The Bank of Punjab. Rao Ishfaq Ahmad COMSATS Institute of Information Technology Lahore . This report contains detail about what I have learned in my eight-week internship in The Bank of Punjab.The Bank of Punjab 6 EXECUTIVE SUMMARY This report is about The Bank of Punjab. The vision of the bank along with its mission and existing status has also been discussed.

HISTORY Established in 1989.for Long term and A1+ for Short term. The lending policy of Bank is not only cautious and constructive but also based on principles of prudent lending with maximum emphasis on security. Remittances. Trade. The Bank provides all types of banking services such as Deposit in Local Currency. Exports and Remittances. Attractive rates of profit on all types of deposits. opening of Foreign Currency Accounts and handling of Foreign Exchange business such as Imports.The Bank of Punjab Introduction to The Bank of Punjab 7 The Bank of Punjab is working as a scheduled commercial bank with its network of 254 branches at all major business centers in the country. and Advances to Business. Trade and Industry for working capital requirements and money market operations are some facilities being provided by the Bank. VISION To be customer focused bank with service excellence COMSATS Institute of Information Technology Lahore . M/S PACRA has awarded the Bank with the credit rating AA. The Bank of Punjab has indeed entered a new era of science to the nation under experience and professional hands of its management. in pursuance of The Bank of Punjab Act 1989 and was given the status of scheduled bank in 1994. It is principally engaged in commercial banking and related services with its registered office at 7-Egerton-road Lahore. Client Deposit in Foreign Currency. Financing. As agriculture is considered as backbone of our economy the Bank of Punjab has introduced "Kissan Dost Agriculture Finance Scheme" to small farmers. The Bank of Punjab plays a vital role in the national economy through mobilization of hitherto untapped local resources. promoting savings and providing funds for investments. Industry and Agriculture. based on its financial results for the year ended as on 31st December 2004.

The Bank of Punjab MISSION STATEMENT 8 To exceed the expectations of our stakeholders by leveraging our r e l a t i o n s h i p w i t h t h e G o v e r n m e n t o f P u n j a b a n d d e l i v e r i n g a complete range of professional solutions with a focus on programmed driven products & services in the Agriculture and Middle Tier Markets through a motivated team. OUR VALUES Our Customers Profitability as Our first priority for the prosperity of our stakeholder that allows us to constantly. improve and succeed Corporate social responsibility Recognition and reward Excellence Integrity Respect to Enrich the Lives of community where we operate for talented and high performing employees in every thing we do in all our dealing for our customer and each other COMSATS Institute of Information Technology Lahore .

Last assignment Secretary Ministry of Science & Technology Government of Pakistan.Government of Punjab Mr. having wide management & administrative experience. Officer. Mr. Salman Siddique Director Serving as Secretary Finance . Mr. MBA from USA. Sikandar Mustafa Khan Director An engineer by profession – Executive Millat Tractors Limited. Shahzad Hassan Pervez Chairman 9 A Serving Grade-22 Govt. Chairman & Chief COMSATS Institute of Information Technology Lahore . Hamesh Khan President Professional Banker.The Bank of Punjab Bank Profile BOARD OF The DIRECTORS Mr.

Qaisar Zulfaqar Khan Director A renowned agriculturist. Mr. Mr. Shehzad Ali Malik Director A leading Industrialist Companies.Chenab Group. Jahangir Siddiqui COMSATS Institute of Information Technology Lahore .The Bank of Punjab Mian Muhammad Latif Director A prominent Industrialist. Gohar Ejaz Director Chief Executive Ejaz Group of Companies. 10 Syed Salman Ali Shah Director An Economist by profession holding PhD (finance) from Kelley School of Business Administration. USA. Indiana University. from the Guard Group of Mr. Graduate from Cambridge. Mr.

V. / General Manager Mr.C. / Manager (International Division) Mrs. Javed Ahmed Khawaja Mr. Muhammad Hanif Head Mr.O.V.O. / Chief Manager E. Anjum Amir President Principal Staff Officer Information Technology Division Mr. Athar Aziz Dogar Mr.P. Anis Iqbal E. 11 MANAGEMENT President Secretariat Mr. Babar Saeed Khan A.C.P.P Credit Risk Management Division Mr. / General Manager O.V.C. Nadeem Amir E. / In-charge Administration Division Mr. / Country Risk Manager COMSATS Institute of Information Technology Lahore .P.P.P/Chief Dealer Audit & Inspection Division Mr. Riaz Akhtar E. Sajid Arif Nomani Finance Division Mr. Abdul Rashid Khan S.V. Rashid Mehboob Mr.O. Aamir Iftikhar AhmedGeneral Manager Mr.O. / Chief Manager Operation Division Mr. / Chief Manager International & Treasury Division Mr. Muhammad Salim E.C. (Consultant) Officiating General Manager Financial Analyst A. Saba Farrukh A.C.The Bank of Punjab Director A prominent Investment Advisor. Nadeem Amir Mr. Hamesh Khan Mrs.O.V.P. / General Manager Mirza Mr.V. Aziz Ul Hameed E. Raza Saeed V.

C. Tariq Mahmood A.V. Shaheen Nazar E.O. Naveed Hafeez S.P Aslam Commercial Asset Development & Marketing Division Mr. Mahmood Sadiq E. / Corporate Head.P.O. Bilal Husnain E.C Chandan Liability & Consumer Products Development Division Mr.O.V.O.P V. / Administrator Shaikh Mr.P Mughal Law Department Sirdar Ahmed Jamal Sukhera Ms. (North) Islamabad Trade Processing Centre Mr.V. / General Manager Mr.V.P V. Sajjad Hussain S.C. Abid Mahmood Mr.The Bank of Punjab Mr. / Executive In-charge Mr.C. / Corporate Head. Zubia Ramzan Legal Consultant / Coordinator In-charge BOP 1st Punjab Modaraba COMSATS Institute of Information Technology Lahore . Haroon Aziz E. Faisalabad / Khan Multan Mr.C. / General Manager Khan Mr. Tajammal Hussain A.P Products / SME Division Mr.O. Muhammad Shoaib General Manager Qureshi Corporate Banking Head Mr.V. Muhammad Hassan E.P / General Manager Qureshi Mr. Muhammad Hanif E. Haji Muhammad V.P Officer’s Training Institute Mr. Hafeez Ud Din Mr.C.P 12 Special Asset Management Division Mr. Tariq Javed Butt V.O. Khalid Qaiyum E.

V. Amir Mumtaz A.P. S.O. Moazzam Mahmood E.P. Amir Hassan A.V.V.C.V. / Chief Compliance Officer Regional Office Lahore Mr. Muhammad Javed S.P. Amir Ali Sadique V.P.Atif E.P / Regional Chief Mr. Saeed Ahmad Rahi Regional Manager Regional Office Gujranwala Mr. Muhammad Salman Chief Executive Corporate Secretary 13 Agriculture Credit Department Mr. Abdul Salam Regional Manager Regional Office Faisalabad Mr.P. / Regional Chief Mr.C. / Assistant Secretary E.V. / Regional Manager Regional Office Rawalpindi Mr. / Regional Chief Mr.M. Naeem ul Hassan A.The Bank of Punjab Mr. Muhammad Iqbal Compliance Cell Qazi Muhammad Latif A. Inam ud Din Akbar Manager COMSATS Institute of Information Technology Lahore .O. / Head Muzaffer Mr.P. / Regional Chief Mehmood Mr.O. / Regional Chief Mr.P. / Regional Chief Mr. Azhar Nawaz A. Zalmai Azam V.C / Marketing Coordinator Maneka Shares Department Mr. Salman Saeed Mr. Ijaz Iqbal Regional Manager Regional Office Karachi Mr.V. Sarfraz Ahmad Regional Manager Regional Office Multan Mr.

GM SME Div. Div. GM IT. Country Risk Mgr. Regional Office Lahore Regional Office Multan Regional Office FSD. Regional Office RWP.The Bank of Punjab ORGANIZTIONAL CHART 14 The Bank of Punjab Organizational chart Chairman & Board of Directors Managing Director GM Finance GM Admin GM Operation GM Liability GM Treasury GM Special Mgt. Regional Office Karachi Regional Office Gujranwala COMSATS Institute of Information Technology Lahore 254 Branches .

4 branches . out of which 7 branches are providing the foreign exchange services facility. FAISALABAD REGION In Faisalabad region The Bank of Punjab have 38 branches. RAWALPINDI REGION In Rawalpindi region BOP have 41 branches with 4 branches dealing in foreign exchange. there are 45 branches. COMSATS Institute of Information Technology Lahore .The Bank of Punjab LAHORE REGION 15 In Lahore region The Bank of Punjab have 65 branches out of which 11 branches are dealing in foreign exchange. In Lahore region regional office is at 7 Egerton roads Lahore. MULTAN REGION In Multan region Bop have 60 branches. GUJRANWALA REGION In Gujranwala Region. All these branches are dealing in foreign exchange. KARACHI REGION There are only four branches in this region. In this region 5 branches are providing foreign exchange banking facility. out of which 4 branches are dealing in foreign exchange.

Acc. Advances Dept. COMSATS Institute of Information Technology Lahore . Consumer Finances Forx. Manager Cash/Dep osit Dept. Dept. Remittanc es Dept.The Bank of Punjab 16 Branch hierarchy Main Branch Lahore Chief Corporate Manager Advances Branch Manager Forex. Accounts Dept. opening Dept.

banks are always there to provide the services. The banking sector plays a significant role in a contemporary world of money and economy. which changed the whole complexion of the banking industry. which consists of a wide variety of institutions ranging from a central bank to commercial banks and to specialized agencies to cater for special requirements of specific sectors. Banks are custodian to the assets of the general masses. It is purchase of car or building of a home. It is playground or any educational or healthy societal activities the money of banks nurtures them. It influences and facilitates many different but integrated economic activities like resources mobilization. poverty elimination. production and distribution of public finance. The country started without any worthwhile banking network in 1947 but witnessed phenomenal growth in the first two decades. COMSATS Institute of Information Technology Lahore . Specialized banking institutions were already working in the public sector. and with this change started the disaster. With irrational decision at the top all the commercial banks were made subservient to the political leadership and the bureaucracy. Pakistan has a well-developed banking system.The Bank of Punjab 17 Comparative Analysis Banking Industry Banking is one of the most sensitive businesses all over the world. By 1970. Banks play very positive and important role in the overall economic development of the country. It is an industrial project or agricultural development of the country the sponsor-ship of banks is very much involved. Comparison with other banks Nationalization of banks in the seventies was a major upset to domestic banking industry of the country. Banks play very important role in the economy of a country and Pakistan is no exemption. it had acquired a flourishing banking sector. The new accountability paradigm changed the business ethics in the banking industry.

Public sector banks National Bank of Pakistan First Women Bank Limited The Bank of Khyber The Bank of Punjab NBP FWB KB BOP The government of Pakistan permitted small private sector banks to operate. incompetent candidates directly appointed/ recruited in all the domestic banks of the country. They ceased to be a business concern and became big bureaucracies. United Bank Limited and now the Habib Bank Limited have been privatized. size and carried over liabilities. The commercial banks thus lost their assets management equilibrium. nonprofessional. One thing good for that particular period was the recruitment of fresh officers in the domestic banking industry through well-organized policies of Banking Council. deregulation and restructuring in the domestic banking industry and financial institutions. last resort of domestic banking industry.e. initiative and growth momentum. With the decay of Banking Council there was flood of insincere. Followed by Allied Bank limited. which indulged in doubtful policies to promote business. They suffered from three terminal diseases: non-performing loans.The Bank of Punjab 18 Nationalization of banking industry was accompanied by violent changes in the external value of rupee. This was accompanied by indiscreet loaning under political pressure. Mehran Bank is the prime example of that kind of lax banking in the country. COMSATS Institute of Information Technology Lahore . higher intermediation cost. The Muslim Commercial Bank was the first bank to privatize. The public sector banking. which constituted the backbone. The era of nineties was the climax of privatization. which ultimately merged into National bank of Pakistan i. thus continued to suffer because of their approach.

They. concentrated on the big business. with the support of ruling elite. western banks started entering into the business.The Bank of Punjab Local Private Banks 19 Askari Commercial Bank Limited Bank Al-Falah Limited Bank Al Habib Limited Bolan Bank Limited Faysal Bank Limited Metropolitan Bank Limited Platinum Commercial Bank Ltd Prime Commercial Bank Limited Saudi Pak Commercial Bank Ltd PICIC Commercial Bank Limited Soneri Bank Limited Union Bank Limited Muslim Commercial Bank Limited Allied Bank of Pakistan Union Bank Limited Mashreq Bank In the meanwhile. leaving the routine business to the local banks. COMSATS Institute of Information Technology Lahore . This reduced the profitability of the local banks.

935 167.298 21.621 3.035 23. Industrial Development Bank of Pakistan Punjab Provincial Cooperative Bank Limited Comparative Analysis of Domestic Banking Industry of Pakistan (Rs. G.775 6. million) Bank ACB BAH BOP BB FB UNION BANK COMSATS Institute of Information Technology Lahore 20 Deposit 51.761 24.295 1.554 328.The Bank of Punjab Foreign Banks ABN Amro Bank Al Baraka Islamic Bank American Express The Bank of Tokyo Mitsubishi CITI Bank Credit Agricole Indo Suez Deutsche Bank Doha Bank Emirates Bank Habib Bank A.759 18.877 .240 23.523 Investments 26.182 Advances 30.842 142.831 8.767 7. Zurich Hong Kong Shangai Banking Corporation IFIC Mashreq Bank PJSC Oman Bank Rupali Bank Standard Chartered Bank Special Banks Zari Tarqiati Bank Ltd.328 6.732 34.

547 10.515 182.68 1.17 407% 0.079 28.46 0.522 11.915 490 3.05 0.706 362.640 12.23 1.876 9.444 78.378 28.44 107% 0.525 10.155 14.76 -68% -13% 126% 54% 88% 66% COMSATS Institute of Information Technology Lahore .532 19.09 0.39 -28% 0.56 0.890 74.610 143.17 1.013 89.760 154.822 69.16 2.534 6.385 21 Comparative Analysis of Earning per Share of domestic Banking Industry of Pakistan Name of the Bank Askari Comm.05 1.The Bank of Punjab KB MB Metro MCB NBP PCB PB SPB SB UB UBL 2.016 8.92 0.91 1.70 1.844 11.07 0.924 140.43 13% 0.365 9.341 20.866 21.21 0.117 2.38 1.10 43% 1.118 856 15.306 7.16 2. Bank Bank Al Habib Bank of Punjab Bolan Bank Faysal Commercial Bank KASB Bank MCB Meezan Bank Metropolitan Bank PICIC Commercial Bank Prime Commercial 1Q2003 1Q2004 Growth 2.640 5.545 37.

92 Bank Soneri Bank Union Bank 0.971 2003 85.54 22 0.525 10.The Bank of Punjab Bank Saudi Pak Commercial 0.148 43.037 6.62 -61% 102% 13% Growth Rate (earning per share) 500% ACB BAH BOP BB FCB 400% KB 300% MCB MB 200% Metro 100% PICIC PCB 0% SPCB -100% SB UB Above chart show the growth of all local banks.102 COMSATS Institute of Information Technology Lahore .437 29.606 8.313 49. in Million) Gross Assets Bank ACB BAH BOP BB FB KB MB 2002 70.990 11.595 36. Gross Assets of Different Domestic Banks of the Country (Rs.387 58.60 0.21 0.621 11. The bank of Punjab has highest growth among its local competitors.36 1.671 4.726 47.

The Bank of Punjab
Metro MCB NBP PCB PB Total 41,381 235,139 432,803 27,982 21,637 955,907 58,982 272,324 471,860 40,134 29,566 1,139,446

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Administrative Expenses of Different Domestic Banks Bank ACB BAH BOP BB FB KB MB Metro MCB PCB PB 2002 1,090 760 900 380 619 204 195 513 8,079 326 512 2003 1,436 1.062 999 375 835 327 255 662 7,575 564 719

Total Equity of Different Domestic Banks (Rs. Million) Bank BB FB KB MB Metro MCB NBP PCB PB 2002 1,113 4,120 593 1,476 2,074 6,314 14,279 1,323 1,380 2003 1,092 5,080 1,216 1,637 2,753 7,726 18,134 1,784 1,536

Current Financial position of The Bank of Punjab

COMSATS Institute of Information Technology Lahore

The Bank of Punjab
Director’s Report

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On behalf of the Board of Directors, I am pleased to present accounts of the Bank of Punjab for the half year ended June 30, 2005. During six months period under review, Pakistan’s economy has gained significant momentum with broad based economic growth in all sectors, which can be attributed to consistent application of wide-ranging structural reforms, prudent macro economic policies, confidence in private sector and financial discipline. Resultantly, the country economic growth rate has exceeded eight percent and the economy has positioned itself as the second fastest growing economy in Asia. Manufacturing & agricultural sectors exceeding their targeted growth rates denote that positive affects of growth in these important sectors of our economy shall be transferred to other sectors of the economy augmenting their growth in periods to come. It gives me immense pleasure to inform you that your bank has achieved an unprecedented results for the six month period under review by earning highest ever profit (both before & after tax) & EPS for any half yearly period since its operations. Profit (before tax) of Rs.1,908 million indicates growth of Rs.791 million (71%) from last year corresponding period figure of Rs.1,117 million. While Profit (after tax) of Rs. 1,531 million shows increase of Rs.644 million (73%) resulting in EPS of Rs.8.47. This impressive performance is essentially ascribable to increase in net markup income of Rs.789 million (101%) showing consistence in banks reliance on earning from its core activity. Total asset base of the bank has risen by Rs.19,229 million to Rs.85,548 million. Advances have reached a level of Rs. 46,840 million, signifying growth of 19% in high return asset of the bank from the figure on December 31, 2004, while deposits have increased to Rs.70, 481 million showing growth of 29%. Bank.s determined focus on improving its deposits base has resulted in phenomenal rise in deposits, which apart from providing much required liquidity also lowered bank.s advances to deposits ratio to a healthy & satisfactory %age of 66%. Owing to splendid performance & sound financial footing M/s PACRA have upgraded long term credit rating of your bank from A+ to AA- (double A minus) and short term
COMSATS Institute of Information Technology Lahore

The Bank of Punjab

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rating from A1 to A1+ which is the highest benchmark in short term rating scale. Your bank is in compliance with all regulatory rules & regulations including compliance with recommendations of Basel-II Committee. Keeping in view excellent results the Board of Directors of your bank have approved an interim dividend for its shareholders in the form 30% stock dividend. Apart from remunerating stakeholders this bonus issue shall make your bank in compliance with minimum paid-up capital requirement of Rs. 2,000 million well before specified date. Management is consistently in pursuit of opportunities to improve the Bank.s performance and improve operational aspects of the bank, both qualitatively and quantitatively, benefits of which shall accrue in future. We extend our utmost appreciation to the management for their record performance. The Board of Directors is also grateful to the Government of Punjab for its consistent support, State Bank of Pakistan for its guidance, valued customers for their patronage and business and to its staff for their untiring effort to make the organization a success.

COMSATS Institute of Information Technology Lahore

620 46.923 1.692.831.593.197. 2005 31.702 1.118.899.944 1.955 61.083 REPRESENTED BY Share capital Reserves Unappropriated profit 1.790 7.944.506.676 70.311 81.795 567.930 85.418.011.486 66.438.645 143.452 2.320.The Bank of Punjab THE BANK OF PUNJAB BALANCE SHEET AS AT JUNE 30.933 4.242 1.964 58.739 14.373 74.548.480.908 7 10.201 689.230 2.839.411 LIABILITIES Bills payable Borrowings from financial institutions Deposits and other accounts Sub-ordinated loans Liability against assets subject to finance lease Other liabilities Deferred tax liability NET ASSETS 333.951.420.587.346 7.476 3.590 4.947.479 3.132.839.882 4.505 39.899.540 8.113 2. 2004 (Rupees in thousand) 7.277.642 1.328 7.770.840.649.174 10.618 Surplus on revaluation of assets Contingencies and commitments COMSATS Institute of Information Technology Lahore .605 54.807.989 743.579.481.867.764 5. 2005 (UN-AUDITED) June ASSETS Cash and bank balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Other assets Operating fixed assets 5 6 Note 26 December 30.083 1.019.021.027.566 2.465 3.964 5.488 16.724.790 267.

The Bank of Punjab 27 COMSATS Institute of Information Technology Lahore .

in m 30000 20000 10000 0 2004 2003 2002 2001 2000 1999 Years Advances Deposits COMSATS Institute of Information Technology Lahore .The Bank of Punjab Six year at glance Profitability related ratios 28 Profitability Ratios 10 8 6 4 2 0 2004 2003 2002 2001 2000 1999 Income/ Earning Average Expenseper share toatal Ratio assets turnover Balance sheet & Relevant Ratios 60000 50000 40000 Rs.

The Bank of Punjab 29 Advances to deposit ratio 80 70 60 50 40 30 20 10 0 % 2004 2003 2002 2001 2000 1999 Capital Adequacy ratio 20 15 10 5 0 % 2004 2003 2002 2001 2000 1999 COMSATS Institute of Information Technology Lahore .

using M net system.  Sign on the back immediately after receiving your ATM card.  Don’t use your phone number or other personal information’s like your date of birth etc. two entries in case you enter the wrong PIN first time) after which your card will be captured by the ATM machine.  Never write your PIN or share it with anyone including the bank staff.  It is advised to retain the receipts until you match them against your account statement. Safety Tips Guard Your Card  To avoid any damage keep your Online Cash ATM card in a safe place.e. Be Bright  In case you need to use an ATM after dark always choose an ATM. which is well lit. Stay Alert  It is safe to check your surrounding before using ATM. as PIN. COMSATS Institute of Information Technology Lahore .The Bank of Punjab B u s i n e s s p ro c e s s a n a l y s i s SERVICES The Bank of Punjab provide the following services to its customers ATM Facility 30 The Bank of Punjab provides ATM Card facility to its customer. giving to customer 24-hour access to their accounts from any ATMs.  You can make maximum of three PIN entries (i. Visit another ATM if the machine is obstructed or poorly lit.

per Transaction(except for staff) 4 Cash Withdrawals “Self Customer + Rs.  On realizing anything or someone suspicious in the area cancel your transaction and leave right away.10/.250/. receipt. Act Immediately  Pick your cash or reclaim your card in 20 seconds otherwise the ATM machine will capture your card.per Transaction (except for COMSATS Institute of Information Technology Lahore . and card safe in the wallet after making a withdrawal.  Remove your card immediately because the ATM will only dispense cash after you remove the card.The Bank of Punjab 31  Shield the screen and keypad so anyone waiting to use the ATM cannot see your PIN or transaction.Per Card staff) (except for 2 Annual Charges Rs. Don’t Flash Your Cash  Count your cash before leaving the ATM.  Make sure to keep your money.ATM Card (except for staff) 3 Cash Withdrawals “Self Customer +ATM” Rs. Transaction Type Charges 1 Issuance of ATM Rs. ATM Charges Sr.250/.30/. Don’t try to count your money after leaving the ATM or at any other insecure place.

3. a branch can also pay the Cheques by debiting the customer’s account at another branch.per Transaction (except for staff) 7 8 Mini Statement 80 column Statement Rs.10/. Following facilities are available at Bank of Punjab’s Online Program for its customers: 1.per Transaction (except for staff) Rs.15/. COMSATS Institute of Information Technology Lahore .per page (except for staff) 32 Online banking The Bank of Punjab provides the Online Banking Facility to its account holders at 147 branches all over Pakistan. which are providing online facility at this time.The Bank of Punjab Other ATM” 5 Cash Withdrawals “Other Customer + Self ATM” 6 Balance Query staff) Rs.10/.15/. 2. Transfer of Funds through Cheques or Cash between Branches.per page (except for staff) Rs. Cash may be accepted at a branch for crediting accounts at another branch. Payments of Cheques. Cash Receipts. There are 147 branches.

000/Note 1) (Staff members will be exempted) 2) (The charges will be applicable on depositor in case of deposits and from payee in case of cheque encashment) Rs. It gives individuals the ability to generate funds for their personal consumption by borrowing against future income.Account to Account For Cash Transactions.50/Rs. It can range from financing a vacation.(Flat) Rs.1000.50 Charges 0. i) Up to Rs.100/. Consumer financing department of The Bank of Punjab is offering loans under the following schemes  BOP Quick Cash  BOP Aasaish Loan  BOP Car Loan  BOP House Laon  BOP Demand Finance COMSATS Institute of Information Technology Lahore .The Bank of Punjab Online banking charges 33 Sr.500.1000. 1 2 Transaction Type For Transfer. 000/. etc.200/. 000/ii) Above Rs. to buying a car or a house.500. 000/iii) Above Rs.to Rs.(Flat) Consumer Financing Consumer financing refers to any financing allowed to individuals by financial institutions to meet their personal needs.02% Min Rs.

200. COMSATS Institute of Information Technology Lahore .a. Mark-up Rate Most competitive rate in the market.15000/ .a. which is For senior Bureaucrats & Executive Corporate Client For all other client Average six months KIBOR+ 600BPS of with floor rate of 14. which will be calculated on daily product basis. Average six month KIBOR + 600 BPS With Floor rate of 16% p. Employees net take home salary is Rs. The facility is an alternative to consumer financing offered by other banks except it is R/F instead of Demand finance. which is more favorable to the borrower. 000/Loan amount/Limit Minimum amount is Rs.000? Tenure of Loan Loan is available for one year.10. ELIGIBILITY CRITERIA  Between 25 and 55 years of age  Permanent employee of selected organizations having at least 3 years of experience  Computerized National Identity Card holder  Net take home salary is Rs. 000 and maximum amount is Rs.The Bank of Punjab BOP QUICK CASH 34 The Bank of Punjab QUICK CASH is a running finance facility provided to salaried individuals through their bank accounts with the Bank for purchase of consumer items or personal needs.50.& above as mentioned on salary slip/ salary certificate (excluding benefits).5% p. For Govt. further renewable subject to satisfactory conduct of account.

Note  Letter of hypothecation  Post Dated Cheques  White Documents I. Actual  Latest Salary Slip/Salary certificate on Company's letterhead  Latest Copy of utility Bills  Copy of service ID card  6 months A/C statement showing salary being credited Post-Sanction Document Requirements  Two personal guarantees (expected incase of BOP employee)  Financing Agreement  D. Letter of Arrangement IV. Authorization /consent III. Letter of Installment COMSATS Institute of Information Technology Lahore .P. Pre-Sanction Document Requirements  Application Form  Copy of CNIC  2 recent photographs Rs.The Bank of Punjab 35 Other Charges Non-refundable fee Processing Fee Documentation charges How Loan will be repaid Loan will be repaid on Demand / Lump sum. 1.450/ Rs. Debit Authority V.850/ Rs. Letter Of authority II.

24 & 36 months are also available with nominal markup  Easily Affordable & Flexible Installments  Quick Processing  No Hidden Cost.The Bank of Punjab VI. and Fans. Mobiles. Refrigerators. whichever is earlier COMSATS Institute of Information Technology Lahore . Microwave Ovens. Audio/Video system ELIGIBILITY CRITERIA Salaried Person  Confirmed permanent employee with one year experience  Salary is routed through a bank account Private Employees In addition to the above mentioned condition:  Having age between 25 and 59 years OR date of retirement. No Insurance cost Product The Bank of Punjab Aasaish Loan is Demand finance facility for purchase of consumer durable goods like TV. Under taking regarding KIBOR 36 BOP AASHAISH LOAN  0% Mark-Up (12 months)  0% Down Payment  FREE Home Delivery  Financing Tenures of 18.

50.000/OR above The Govt.10.  Bank Statement for last 3 months  Latest Copy of utility bills (Electricity & phone)  Income Tax Return/Wealth Statement COMSATS Institute of Information Technology Lahore .The Bank of Punjab 37  Having minimum Take Home salary of Rs.  Minimum 2 years in current business  Having minimum Net Income of Rs. ii. if loan is Rs. Latest Salary Slip Employer Certificate on letterhead Additional requirements for private employees The Private employees will submit the following three documents in addition to above documents mentioned.000/-(Rupees Ten Thousand) per month Self-employed business / Professional In addition to above condition  Having age between 25 and 57 years (57 Years at maturity of facility). 2 & 3 i.15.000/-(Rupees Fifteen Thousand) per month Documentation required for processing  Application form  Copy of NIC/CNIC  Customer Consent Form. employees will submit the following two documents in addition to documents mentioned in Serial # 1.

Letter Of authority II. Authorization /consent III.  Bank Statement for last 6 months  Latest Copy of utility bills (Electricity & phone) of residence  Income Tax Return/Wealth Statement Business related documents  Documentary evidence in business or in the profession for the last 2 years  Proprietorship Certificate/Partnership deed  Copy of Professional Degree (For Professionals)  Latest utility bills of current business address Processing Charges: Rs. Note  Letter of hypothecation  Post Dated Cheques  White Documents I. Letter of Arrangement IV.P.The Bank of Punjab 38 Additional requirements for self-employed professional/business Person The Self-employed Professional/Businesspersons will submit the following documents in addition to documents mentioned above following documents are attached.190/Documentation Charges: Actual POST-SANCTION DOCUMENT REQUIREMENTS  Financing Agreement  D. Debit Authority COMSATS Institute of Information Technology Lahore .

12. For Govt.000 COMSATS Institute of Information Technology Lahore . Employees. Net take home salary is Rs.000.200. Letter of Installment 39 BOP CAR LOAN  Easily Affordable & Flexible Installments  Quick Processing  Minimum Down Payment  Minimum Insurance Product BOP car loan is a Demand Finance Facility to Purchase Brand new locally manufactured/ Assembled Cars for Personal Use ELIGIBILITY CRITERIA Salaried Person Permanent employees of selected organizations with at least 3 years of service with a minimum take home salary of Rs.The Bank of Punjab V. 1.000/Self-employed Business person and professional having minimum 3 years in current business  Holder of computerized national identity card  Between 25 and 57 years of age Loan Amount Minimum amount is Rs. 000 and maximum amount is Rs. 000.15.

750/Actual oan will be repaid in equal monthly installments through postdated cheques.450/Rs. We can easily calculate monthly installments by multiplying the loan amount with the pricing factor: Tenor of Loan Pricing Factor COMSATS Institute of Information Technology Lahore .a. mark up and insurance amount. Total monthly installment includes principal. Insurance premium for the first year will be paid in full up front with down payment and for subsequent years along with installment Monthly Installment plan L Rs. 3. Other Charges Non refundable fee Processing Fee/ Documentation charges Registration Charges Insurance of the car BOP has arranged insurance facility from its approved list of companies at discount rates for the convenience of its customers.The Bank of Punjab Tenure of Loan Loan is available for a period of minimum 3 years and maximum 5 years 40 Down Payment Down payment is (10 to20%) of the value of the car Mark up rate charged Most competitive rate available in the market For all customers average six moths KIBOR+ 375 BPS with With Floor rate 10% p.

Letterhead  Bank Statement for last 6 months  Latest Copy of Utility Bills For self employed business persons/professionals  Copy of CNIC  Two recent photographs  Bank statement for the last I year of business account 0.03111 0. Account number. Business entity. Authorized signatory  Copy of Latest utility bills Business Related Documents  Documentary evidence in business or in profession for the last 3 years  Income Tax return / wealth tax statement  Proprietorship/Partnership Deed  Articles & Memorandum of Association  Latest copy of paid utility bills (Phone & Electricity) of current business address COMSATS Institute of Information Technology Lahore . Maintained since.02004 41  If not banking with us Banking certificate from branch manager stating Title.02418 0.The Bank of Punjab 3 Years 4 Years 5 Years DOCUMENTS REQUIRED For salaried individuals:  Copy of NIC  2 Recent Photographs  Latest Salary Slip / Certificates on Comp.

if available COMSATS Institute of Information Technology Lahore .The Bank of Punjab 42  Membership/payment receipts of Chamber of Commerce/Trade Association / Anjuman-e-Tajiran.

1. 500. which will be calculated on daily product basis.450/ Rs. having at least 1 years of experience  Monthly installment should not exceed 40% of take home salary  Computerized National Identity Card holder Loan amount/Limit Up to 25 take home salaries (Maximum Loan amount + Rs. Actual Pre-Sanction Document Requirements COMSATS Institute of Information Technology Lahore .The Bank of Punjab BOP DEMAND FINANCE (CLEAN) ELIGIBILITY CRITERIA  Between 25 and 59 years of age 43  Permanent/ confirmed GOVT/ private employee/ professional maintaining salary account in any bank.850/ Rs. Other Charges Non-refundable fee Processing Fee Documentation charges Rs.a.000/-) Tenure of Loan Loan is given for the period of 1year to 5 year Mark-up Rate Most competitive rate in the market. which is For all other client Average six month KIBOR + 550 BPS With Floor rate of 14% p.

Authorization /consent III. current designation. length of service. Letter Of athoriety II. Debit Authority V. gross salary & certificate from HR department for perks  Departmental Undertaking regarding salary rout though  Data check  Undertaking Regarding Payment of post dated cheques.P. Letter of Arrangement IV. Note  Letter of hypothecation  Post Dated Cheques  White Documents I. Letter of Installment VI. Post-Sanction Document Requirements  Two personal guarantees (expected incase of BOP employee)  Financing Agreement  D. Under taking regarding KIBOR COMSATS Institute of Information Technology Lahore .The Bank of Punjab  Copy of CNIC  Latest Salary Slip/Salary certificate on Company's letterhead  Two personal guarantees with CNIC (exemption of BOP staff) 44  Employer Certificate on company’ letter head with joining date.

The Bank of Punjab HOUSE LOAN Product 45 The Bank of Punjab house loan is long-term finance facility for purchase of house/flat or construction of house on self-owned plot or for renovation/ home ELIGIBILITY CRITERIA Salaried Person Permanent employees of selected organizations with a minimum take home salary of Rs. 300.to 20 % of assessed value COMSATS Institute of Information Technology Lahore .20.000.Rs. 000 Self-employed Business person and professional having minimum 5 years in current business  Holder of computerized National Identity Card  Between 25 and 60 years of age Loan Amount Minimum Amount Maximum Amount Purpose Purchase of House/Flat& Construction Home Improvement/ Renovation / Addition Bank Rate Bank financing up Rs.500.000/.Rs. 7.000/.to 70% of assessed value Bank financing up Rs. 3.000/. 300.000/.

000 * 0. mark up and insurance amount.00985 = Rs. it will be reviewed every quarter. 2. levies etc Rs. Simply multiply the 15-year factor by your amount Rs. you take a loan for Rs. (For each year new amortization schedule will be provided to the customer in case of any change in mark up) Other charges Non-refundable fee Processing Fee Valuation charges.g. 05 years Maximum 46 Mark up rate charged Most Competitive rate in the market. Monthly installment can easily be calculated for e. which will be calculated on daily product basis. 1.The Bank of Punjab Tenure of the loan Purpose Purchase of House/ flat Construction Home improvement Minimun 3 years 3 years 3 years 15 years 15 years with maximum 12 months grace period.000.if. legal charges Stamp duties. Total monthly installment includes principal.000. 9850 will be your monthly installment payable excluding insurance (Life & Property).950/Actual How will the loan be repaid? Loan will be repaid in equal monthly installments through postdated cheques. 1. . linked with Average six months KIBOR +300 BPS.000 for 15 years. COMSATS Institute of Information Technology Lahore .450/Rs.

01061 0. gross salary & certificate from HR department for perks.03157 0.) Security of the loan  House/flat purchased  Plot on which construction is to be carried out  House on which renovation is to be carried out Documents are required  Copy of CNIC  Two recent photographs  Last three Salary slips/ salary certificate on company's letter head with joining date Current designation.01778 0.01110 0.The Bank of Punjab 47 Financing period 3 4 5 6 7 8 9 10 11 12 13 14 15 Pricing Factor 0.00985 (Insurance premium for the first year will be paid in full up front with down payment and for subsequent years along with installments.01439 0.02465 0.01240 0.(for salaried individuals) COMSATS Institute of Information Technology Lahore .01328 0. length of service.01020 0.02052 0.01169 0.01584 0.

Corporate Financing Relationship Managers. Mark up rate is different according to scheme. But there is little bit difference according to the scheme and amount of the loan. Amount of loan is different for different loans. Advances department provide the advance to the reliable corporate client. at the bank of Punjab are dedicated towards developing relationships with corporate clients to service their financial needs.The Bank of Punjab 48  Bank statement for last six months for salaried individuals and for the last I year incase of self-employed businessperson  Copy of utility bills  Fee slip of children if applicable  Income tax return / wealth statement  Copy of Rent agreement if living in rented house  Business proof (for a business person) Agriculture Financing The bank of Punjab is offering following agriculture schemes  Kissan Dost Agricultural Scheme  Kissan Dost Tractor Scheme  Kissan Dost Mechanization Scheme  Kissan Dost Farm Transport scheme  Kissan Dost Eslah-E-Arazi Scheme  Kissan Dost live stock development Scheme  Kissan Dost livestock Scheme  Kissan Dost Commercial Agro Services Scheme  Kissan Dost Agri Mall Scheme Basic requirement for all these schemes are same. The corporate finance department of COMSATS Institute of Information Technology Lahore . In most of the schemes the requirement is that the Brower should be resident of cultivated area and own a minimum 5-acre and maximum 50-acre area. For all these loan there must be some security for bank.

sight LC and usance LC. power. oil and gas distribution.The Bank of Punjab 49 bank of Punjab is offering different types of loan facilities. Trade Services The foreign exchange department of bank of Punjab is offering the trade service to clients. In sight LC bank pay the amount when it receive the Bill Lading from Correspondent bank. in line with working capital cycle of client. They also handle export guarantee transactions and government donor flow intermediation. drawing from the full range of our resources and capabilities. The Corporate Banking Group manages a high quality asset portfolio being an active player in many sectors including textile. fertilizer. for an appropriate period. The bank of Punjab is also providing the structured finance syndicate to its clients. sugar. In the dynamics environments of business bank provide the short-term and long-term funding needs in the most efficient manner. negotiation of documents. and have end-to-end responsibility for your letters of credit. There are two types of LC. In usance LC. To provide finances bank must look at the affectivity and efficiency of the business. and inquiries. For providing these facilities bank have following charges schedule. COMSATS Institute of Information Technology Lahore . pharmaceutical. there is limit of payment normally 90 days. leather. to assist client in financing their imports/exports. For corporate financing bank the financing limit for client on the basis of its asset and bossiness exposure. The bank of Punjab can provides trade related facilities. Running Finance over draft etc. petrochemical. reimbursements. marketing and refining and fast moving consumer goods industries. like Demand Finance. Cash Finance. automotive. The bank of Punjab offers a full range of documentary letter of credit services as well as discounting and reimbursements to support any or every part of the customer trade transaction. The bank of Punjab is offering the variety of working capital financing facilities. Experienced personnel use their specialized expertise to innovatively structure trade transactions and process daily trade transactions.

50% .50/Rs. 250/.50/- As per approval of Sanctioning Authority As per approval of Sanctioning Authority NOTE: * No Mark-up will be charged from the date of negotiation till the date of lodgement of documents received under Inland L/Cs. 200/-+ Courier Charges Rs. ii.) If retired after 3 days of lodgement. COMSATS Institute of Information Technology Lahore . 50 Negotiation commission @ 0.(Flat) Per Bill + Courier Charges Rs. where the payment as per reimbursement arrangement is made to the negotiating bank only on receipt of documents.The Bank of Punjab Charge schedule of the bank of Punjab Sight Bills a) At Negotiation end: I) b) Collection charges for restricted L/C (where negotiation is restricted to some other Banks and presented to us for forwarding). c) At opening end (at the time of retirement) Rates of Mark-up i.Min Rs.) If retired within 3 days from the date of lodgment.

Mark-up is to be recovered/charged as per approval of Sanctioning Authority Acceptance Commission @ 0.50/(I) In case of Sight L/Cs Mark-up is to be recovered/charged as per approval of Sanctioning Authority.(flat) COMSATS Institute of Information Technology Lahore . 51 2) Opening End a) At the time of Acceptance of the Bills.50/- (Flat) per bill + courier charges Rs.350/. (III) In case of Usance LCs of our own Bank.200/-Flat+Courier charges Rs.The Bank of Punjab 2 Usance Bills 1) Negotiating End i) Markup on documentary Bills Purchased /Negotiated under Inland L/C Negotiating commission Rs.500/.350/.250/Rs. (II) In case of Usance L/Cs Mark-up is to be recovered/charged as per approval of Sanctioning Authority.10% per month shall be recovered/charged for the usance Import Bills for the period beyond the date upto which the commission has already been charged at the time of opening of LC or thereafter any extension is made in the validity of the LC. Rs.(Flat). Rs.(Flat). b) At the time of booking c)At the time of maturity/due date At Collection End Collection Charges 3 Discrepancy Charges Rs.

Am Tucherpark 16.The Bank of Punjab 52 These all facilities are provided on the specific limit maintained by the corporate bank. CORRESPONDENT BANK Bank Name STANDARD CHARTERED BANK BANK SADERAT IRAN Address 23-25 Mahatama Ghandi Road.Box 1176 Feldeggstrasse 55. PAKISTAN France ABN AMERO BANK New York Branch. AV. P. Denmark Commerz Bank AG. N. Paris. New York.rue de la NATIONAL BANK OF Gauchetiere Quest CANADA Montreal H3B 4L3. DK-1092 Copenhagen K.01.O. P. P.4 Heidrun Koch-Vollbracht CAD 097613-228-00101 UNILCHZZ DABADKKK 27000 daba COBADEFF 00414152530 NBPADEFF 0041414103 SCBLGB2L 0051885951 UBAFFRPP 0042610334 NBPAFRPP 0042651828 CHF 859. The bank of Punjab is offering FIM.F. Switzerland Holmens Kanal 2-12.K. UND VEREINSBANK 80538 Munich Germany COMSATS Institute of Information Technology Lahore .O.O. PAKISTAN Germany STANDARD CHARTERED BANK U. Box 15745BSIRIRTH 0088-212352 631 Tehran. FATR facilities to its clients.6. 190 Avenue Charles de gualle 92523 Neuilly Cedex france EURO EURO EURO 491551 01-7087888-96 01-092225-00151-0 1210-1227-1-1870 90.A.03. 22205248426 Sepehr Tower Somayeh Ave.Box 4555/Grand Central Station. For foreign trade. Iran BNDCCAMMINT 00210525181 ACU $ 216/1/1/6501 Banque Nationale du Canada 600.B. The Bank of Punjab has collaboration with following foreign bank for correspondent. Frankfurt ZFO BC MITTE 9. FORT Mumbai 400 001 Swift & Telex SCBLINBB Currency ACU $ Account No.Y 10017 USA EURO ABNAUS33 0023-62734 HYVEDEMM EURO EURO 005747324350 69106935 BAYERISCHE HYPO. NATIONAL BANK OF Frankfurt Branch.001 DKK 3996077691 COMMERZ BANK EURO 400-8807406-00EUR Filale Frankfurt/M. DES ChampsNATIONAL BANK OF Elysees 75008. Canada UNITED BANK AG ZURICH DANSKE BANK AKTIESELKAB 8034 Zurich.. PARIS 37 Grace Church Street London EC3V OBX-U.

U. New York. 2-Chome.Y 10017 USA HABL.O.Y. New York. 18th Floor Far East Finance Centre. 16 Harcourt Road.A.A UNITED BANK LIMITED 1 Madison Ave.Y 10010-3603.The Bank of Punjab AG (HYPO VEREINSBANK) UNITED NATIONAL BANK STANDARD CHARTERED BANK 18 Finsbury Circus London..Box 4555/Grand Central Station. Minato-KU. PSC HANYUS33 0023275859 MSHQUS33 0023239881 BNDCCAMMINT 00210525181 USD USD 20729586 70120078 Banque Nationale du Canada 600. Box 9917 Hong Kong 111 Wall Street. USD 097613-240-002001-01 NBPAUS33 0023232455 SCBLUS33 0023420117 UBAFHKHX 0080275386 USD 55804561 3582-040168001 60 030000 001 03 0/96 USD USD CITIUS33 UNILUS33 USD USD 36208954 040-0498-5 OBECTIVES OF INTERNSHIP This internship was the part of my study course. Japan ABN AMERO BANK New York Branch. management etc. Here my aim was to see the application of this COMSATS Institute of Information Technology Lahore . New York. 5th Floor / Zone 9 New York. N. EC2M 7BJ U. so objective of this internship was to learn and gain some practical experience. I studied many courses about finance. G. U. (HONGKONG) LIMITED CITIBANK N. UBAF. New York. 100167419 USA 255 Fifth Ave. Nishi NATIONAL BANK OF Shimbashi.S. PAKISTAN 10048 USA STANDARD CHARTERED BANK U. new York. NY 10005 30 Wall Street. Canada 100 Wall Street.S.P.K NBPAGB2L 0051884892 SCBLGB2L 0051885951 GBP GBP JPY 53 0001-000063001 01 7087888 01 21067 3F.A.. During the MBA program. NBPAJPJT 0072-23830 PAKISTAN Tokyo 105. 99 Madison Ave.rue de la NATIONAL BANK OF Gauchetiere Quest CANADA Montreal H3B 4L3.K 37 Grace Church Street London.O. EC3V OBX U.F. NY 10016 USA ABNAUS33 0023-62734 USD 574073243541 HABIB AMERICAN BANK MASHERQ BANK . New York N. NY. P. 21st NATIONAL BANK OF Floor. N.B. 7-4.A.

In all jobs related to finance. how to work with people of different age. how to interact with officer and deal with subordinates. So my aim was to learn how banks deal with corporate and general information about rules and regulation of banks. I saw the differences in bookish knowledge and its application. different educational background. How I can be a best team player. . there is involvement of banks. COMSATS Institute of Information Technology Lahore . My second objective of this internship was to learn about general banking.The Bank of Punjab 54 bookish knowledge and its practical implementation. and different interests. How it is useful in practical life. as customer I tried to get experience.

Shahid Mr. I worked in utility collection. I worked in cash department.The Bank of Punjab Learning As a Student Intern Duties Date 12 July to 16 July Description Account opening is the entrance to bank. Here major activities were to receive the cheques and send these for clearing to other bank after stamping and keeping in 27 July to 1 August 2 August to 4 August record. proprietor and companies. Amin Dogar 55 COMSATS Institute of Information Technology Lahore . Here we issued. Here I worked in import. TT. In consumer finance major job was “customer dealing” I worked in Clearing department. Raheel Mr. Here I learnt how they calculate profit on corporate accounts and transfer the 5 August to 6 August amounts. DD. I worked in foreign exchange department. Amir Butt. Mr. I worked in advances Manager advances Manager Foreign exchange. Export and Foreign currency accounts. Miss. Muhammad Afzal Supervisor Mr. MT and like other responsibilities. Aneela Mr. In this department I worked on different old account and open new account for 18 July to 23 July 25 July to 26 July individual. I performed different duties. In each of 24 August these. During this period. I worked in Consumer finance department. I worked in remittance department. Here I learnt how bank adjust the collection from other branches with the accounts of PTCL and 8 August to 23 August WAPDA. Pay order.

Requirement for company account are as follows  Written request on the letterhead of company from an authorized person to open company’s account  Chief executive. About account opening Account opening is a simple process but it becomes complicated in case of corporate accounts.  Copy of national ID card  Written evidence of what applicant is doing  An introducer (a person who already holds account in the bank) for account opening. so all working of bank was new for me. 56 New Knowledge Acquired As this was my first experience in any bank.The Bank of Punjab to 5 September department. For individual or joint account. When account holder comes with letter of thanks bank will issue COMSATS Institute of Information Technology Lahore . company secretary and director along with common seal must sign resolution  Attested CNIC copies of all directors  Form 29 attested from registrar of joint stock companies  Memorandum and articles of association. bank will open the account and sends letter of thanks to its customer.  Certificate of incorporation  Certificate of commencement of business only in case of public limited company After the completion of these requirements. account opens on following simple requirements.

Telegraphic transfer is same like the MT but here fax machine is use instead of mail. Outward clearing In outward clearing cheques of other banks are presented in our branch.The Bank of Punjab 57 chequebook to account holder. Mail transfer is to transfer the amount by mail in any account of same bank. Remittance Banks offers different types remittance having different specification. date of cheque etc.3 stamps are stamped in these cheques  Clearing stamp  Crossing stamp  Payees a/c credited stamp COMSATS Institute of Information Technology Lahore . Call deposit receipt is used in case of tender or auction. Pay order is used for intercity payment. If chequebook is lost the account holder has to give written application for the stop payment of cheques of that chequebook and fill a form for issuance of new chequebook. In it we check certain factors such as words and figure difference. for out station payment. These remittances are demand draft. In inward clearing we DEBIT a/c of our a/c holder and CREDIT other branch. CLEARING Clearing is used to pay or receive payments to other banks. This is called inward clearing. This is main difference between Demand Draft and Pay Order. There are 2 types of clearing  Inward clearing  Outward clearing Inward clearing Cheques of our branch that are deposited at other banks are brought to us by NIFT.

Bank pays this profit after six moth or transfer in account of account holder after six month. INTER BRANCH CREDIT TRANSACTION (IBC) IBC advice is made for both inward and outward clearing. For corporate account profit is calculated on daily basis. we fine our a/c holder Rs 100 as a penalty and also make an entry in the register. If words and figure is correct then officer verify the signature and check the date.The Bank of Punjab In outward clearing we DEBIT suspense a/c and CREDIT a/c no. When cheque is presented to bank. CASH Cash department perform the responsibilities to deal with cash. After six month cheque expires. of our a/c holders. A cheque can be converted in to cash within six month. transfer amounts from one account to other accounts and calculate the profit for different types of accounts. CHEQUE RETURN IN INWARD CLEARING If the cheque is returned in inward clearing. Profit is credited after a moth in the CPA account. For PLS account bank calculate the profit on the minimum balance in account from 6th to 29th of the month. CHEQUE RETURN IN OUTWARD CLEARING 58 If cheque is returned in outward clearing we make an entry of the returned cheque in the register and give it back to our customer after having his signatures in the register. Formula used to calculate the profit is Profit = Capital X days X (%) 365 X 100 COMSATS Institute of Information Technology Lahore . officer match the word and figure of cheque.

In FIM the imported product remain in the custody of bank. now whole risk of this trade is converted In this facility customer release the whole COMSATS Institute of Information Technology Lahore . Advance payment and contact is simple payment through bank. one is the advance payment of the imported product. On receiving these documents. This facility is for the reliable customers. If there is any discrepancy. I forms and insurance of the product. Exporter provides the documents like bill of exchange. bank pays the amount according to conditions in LC. Importer has facility to realize the quantity of product as after payment of that quantity. Import and Export Imports 59 For import any product. Or Contact.The Bank of Punjab FOREIGN TRADE Foreign trade is divided in two parts. To open LC importer request for issuance of LC on legal required paper with Performa invoice. but in LC bank guarantee about the foreign exporter. when both parties importer do not rely on foreign exporter. importer takes the bill of lading from bank after the payment of LC. Importer also gives detail of condition of LC. Export Export is just like imports but here we act as exporter bank. After receiving LC documents. bank takes the acceptance from importer about the discrepancies. packing list and all other document required in contract or LC with E form. Exporter receives payment from bank. In export bank provides the refinancing and purchasing facility to customers. second is contract between two parties and is the LC. foreign importer ships the product and sends the bill of lading or AWB to local bank. FATR facility is normally for 120 days. To clear the imported product from port. In export we perform all that activity which foreign banks perform in case of import. Bank sends these documents to foreign bank. AWB. Bank checks the LC and bill of lading. certificate of origin. FIM and FATR. After this request bank will send LC through swift. importer first contact with foreign exporter. There are three possibilities for trade. When customer has relied on foreign importers then bank take risk and purchase the exports after shipment. imported product. If importer cannot pay the amount there is two facilities from bank.

Document  Accepted Facility offer letter “FOL”  Letter of arrangement  Demand promissory note  Letter of continuity  Letter of authority  Letter of installment  Agreement for financing  Letter of hypothecation  Letter of pledge For All facilities All facilities All facilities Running finance All facilities Demand finance All facilities HYPO Pledge Where required COMSATS Institute of Information Technology Lahore . For example in cotton season. running finance and other schemes according to customer requirements. cash finance. Cash finance facility is to meet seasonal requirement of cash. In running finance bank debit the account of corporate client and issue the chequebook. mortgage is for the assets like land or building. Hypothecation and Mortgage. Bank provide loan and cotton remain in custody of bank. Pledge is offered for cash finance or seasonal finance.The Bank of Punjab 60 to bank. offer loan. bank of The Bank of Punjab require following documents. Lien is marked on liquid assets. Pledge. to provide different loans banks require different securities like Lien. approve loans and like other work related to corporate loan. Normally banks offer the loan in form of Demand finance. This facility is called negotiation or purchasing. Advances Main working of Advances is department is to provide loan to corporate client. Client can cash the require amount from this account. Running finance facility is to meet the day-to-day expenses. In refinancing bank finance the local exporter according to prudential regulation of state bank. Documentation Require Generally for all types of loans. textile related companies require cash to buy cotton. This main job of this department is to maintain the credit limit of client.

The Bank of Punjab  Memorandum of deposits of title deeds  Comprehensive insurance policy  Personal guarantee of the Mortgagor/ Director Where required Where required 61 COMSATS Institute of Information Technology Lahore .

There are 254 branches all over the Pakistan IV. Financial position of The Bank of Punjab is growing every year.The Bank of Punjab SWOT ANALYSIS Strengths 62 I. further it increase the cost. It builds trust of client on Bank. M/S PACRA has awarded the Bank with the credit rating AA. based on its financial results for the year ended as on 31st December 2004 III. It is difficult to manage large number of branches. As Bank of Punjab has extensive branches within the Punjab province. V.for Long term and A1+ for Short term. Other banks have competitive edge. VI. The Bank of Punjab has a large network of branches. The Bank of Punjab has only few branches out of province Punjab. COMSATS Institute of Information Technology Lahore . The Punjab government is supporting to “The Bank of Punjab”. The Bank of Punjab has highest earning per share. Weaknesses I. The Bank of Punjab has computerized banking system. To train its employees Bank of Punjab have training center. II. The Bank of Punjab provides the online Banking facility to its customer. VII. There are different training session are held for new and old employees. II.

III. VI. Opportunities I. deposits. II. The staff members of The Bank of Punjab are not satisfied with the pay scale increments and promotion criteria as compare to other banks. IV. Banks are the source of these funding. There is need to enhance the product line. IV. Turn over rate of employees is increasing. Entrance of foreign bank in competition with local bank is great threat for bank of Punjab COMSATS Institute of Information Technology Lahore . as they are not satisfied with the pay structure. V. Imports and exports of the country are increasing. With the threat of WTO SMEs require more funds to enhance their infrastructure to improve the quality. With change of government policies it may affect the bank II. As economy is growing. Threat I. The number of salaried persons is increasing with the economy structure of the country.The Bank of Punjab 63 III. This creates opportunity in consumer financing. The work responsibilities are broken into small parts. The bank is offer regular product line. The Bank of Punjab has major GOVT. Banks have opportunity to enhance their business. there is more investment demand in Pakistan.

The State Bank of Pakistan often imposes various restrictions on banks. IV. Government legislations about banking sector V. Political factor more influence on The bank of Punjab COMSATS Institute of Information Technology Lahore . Therefore. none of banks is independent in policy making and can launch any product without the permission of the State Bank of Pakistan.The Bank of Punjab 64 III.

the bank of Punjab has major government accounts. Its growth rate is highest among all local banks. foreign exchange and advances. Staff member of bank of Punjab are cooperative with me and really help me to achieve my objective.The Bank of Punjab RECOMMENDATIONS 65 Last five year performance of The Bank of Punjab shows that the bank of Punjab is increasing its profitability and its deposits. which a one person can perform. should be integrated to save time.  To attract new customer bank should offer value added services  The Bank of Punjab should increase the line of product to attract the new clients. in view to decrease the turn over rate CONCLUSION The bank of Punjab is the one the best bank in local banking sector.  The bank of Punjab should try to maintain the accounts of diversified companies.  The bank should revise its pay structure and compensation plan according to the market.  Those activities. COMSATS Institute of Information Technology Lahore . have two are three major GOVT accounts and like others. The bank of Punjab has potential to become top ranking bank in Pakistan banking industry. Being the bank of government. My basic purpose of this internship is to learn about the working of bank. There are some flaws like the small product range. During my internship I got knowledge about general banking. This will reduce the risk of government policies  To manage its all branches the bank of Punjab should establish the intranet system.

bop.The Bank of Punjab Bibliography http://www.pk http://www.sheshunoff.business-standard.com.sbp.com http://www.org.pk http://www.com Staff of the bank of Punjab Annual report of the Bank of Punjab 66 COMSATS Institute of Information Technology Lahore .

They accept deposits. and that debt principle will be repaid in full at maturity. and a document of title. Basic points (Set by the bank to adjust markup) Capital adequacy means having enough capital funds to protect it from the risk that customer could lose their deposits as a result of trading losses. to pay a specified amount of money at a specified time A document issued to an exporter by a common carrier transporting merchandise.The Bank of Punjab 67 Glossary Advice ATM Asset turnover Asset portfolio AWB Bill of exchange A bank's written acknowledgement of a transaction automated/automatic teller machine is a ratio focusing on the volume of sales achieved by the business Allocating the funds to different assets classes Air way bill An order written by an exporter instructing an importer. It serves as a receipt. arrange payment of bills and provide a number of customer services Data check is a document has records of all loan of customer form all banks Bill of lading BPS Capital Adequacy CDR CPA Credit rating Commercial banks Data Check COMSATS Institute of Information Technology Lahore . Ratings are by specialist agencies. An authorized institutions and perform four functions. or formal opinion. Call deposit receipt Corporate premium account A measured judgment. from bad debt by the bank. or an Importer’s agent. a contract. e. make loans. about the likelihood that Interst payments on particular issue of bonds or other debt security will be paid full and on time.g. The highest credit rating for long-term debt is AAA.

P. a legal document Part of a company's profits paid to shareholders the portion of a company's profit allocated to each outstanding share of common stock Total assets minus total liabilities. shares. The charge you pay if you borrow money or the income you get if You invest it. Mail transfer Mortgage is charge on immoveable property to secure the finance National Institute of facilitation technology (pvt) Profit loss sharing account The ratio used to measure the ability of a company to generate profits. In pledge goods are in possession of bank. In sight LC payment will be made on receiving the shipment COMSATS Institute of Information Technology Lahore . Finance against imported merchandise Finance against trust receipt 68 A written agreement to allow Bank to deposited or withdrawn from an account An asset held in exchange for debt financing. Note Dividend Earning per Share Equity FIM FATR Hypothecation KIBOR LC Letter Of authority Lien Markup MT Mortgage NIFT PLS account Profitability Ratio Pledge Sight LC Karachi Inter bank offer Rate A bank issued document that guarantees payment for a pre-specified period and amount Demand draft Demand promissory note.The Bank of Punjab DD D. In lien normally there are liquid assets like bonds. Pledge is the bailment of goods for security.

Stock dividend Syndicate TT Usance LC Working Capital A payment by the corporation in share of stock rather than cash A group of banks acting together temporarily to loan money in a syndicated credit or to underwrite a new issue of bonds Tele graphic transfer In usance LC payment will be made after 90 or 120 days of shipment Stock plus debtor minus short-term creditor 69 COMSATS Institute of Information Technology Lahore .The Bank of Punjab documents.

The Bank of Punjab Appendix 70 COMSATS Institute of Information Technology Lahore .

The Bank of Punjab 71 COMSATS Institute of Information Technology Lahore .

The Bank of Punjab 72 COMSATS Institute of Information Technology Lahore .

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