The Bank Of Punjab

INTERNSHIP REPORT ON The Bank of Punjab
Submitted to:

The Bank of Punjab
Submitted by:

Muhammad Tanveer Roll # MBK-O7-34 MBA (Banking & Finance) 3rd Semester Session 2007-2009

Institute of Management Sciences Bahauddin Zakariya University Multan

A Customer Focused Bank With Service Excellence

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The Bank Of Punjab

Dedication

Dedicated to my parents who gave me enough Courage to face the difficulties of my life. Whose love and prays always Accompanied me and guided me Like a shining star whenever I was in darkness and Enabled me to reach This stage, May
A Customer Focused Bank With Service Excellence
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The Bank Of Punjab

They live Long!

A Customer Focused Bank With Service Excellence

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..................................................................................24 BOP CAR FINANCING:.......................................... 8 Genral banking..........................................................................................................................................................................................................................................19 FUNDED.....................................................9 Clearing Department................................5 PREFACE......... 8 Mission...............26 Lady Entrepreneurship Financing …………………………………………………...........................................................................................26 Dealers/ Franchising Scheme ........................................................................................................14 Cash Department ............................................................................... 6 INTRODUCTION TO THE BANK OF PUNJAB..................................24 BOP ASSIAH LOAN:...................................................................24 BOP HOUSE LOAN:...............................................................................................................................................................26 NON FUNDED...................................................................................................................25 CNG Filling Station ................................................................22 AGRI-SCHEMES.....................................................................19 AGRICULTURE FINANCING.............................................15 CREDIT.........................................................................................................................................................................................23 CONSUMER FINANCING.........................19 ADVANCES......................................................................27 A Customer Focused Bank With Service Excellence 4 ..25 SMEproducts....8 Core Values................................................................................................................................................................25 SME FINANCING ...............................................................................................................................................................The Bank Of Punjab TABLE OF CONTENTS Acknowledgement............................................................................................................................9 Deposit Department...............24 BOP QUICK CASH LOAN:..........................................................................................7 Vision..

.......................27 TABLE OF CONTENTS................................ 8 ENTERIES....................................5 PREFACE..7 Mission........................................The Bank Of Punjab GUARANTEES .................6 INTRODUCTION TO The BANK OF PUNJAB.........................................................................................................13 Acknowledgement One is the first the Almighty ALLAH whose blessings are above each and every thing which make A Customer Focused Bank With Service Excellence 5 ....................................................................................................................................................................................................................................................4 Acknowledgement...........

All prays to HAZARAT MUHAMMAD (PBUH) who is the reason for creation of the universe and whose kindness came to my heart. Unless and until the students experience the novelty of practical work. their knowledge of what they study in theoretical courses remains incomplete. boosts morale and confidence of the perspective executives. On the successful completion of my report. And I feel utmost pride in acknowledging with sincere gratitude for the valuable guidance I have received from “My Teachers” PREFACE In MBA (Banking& Finance). So internship plays an indispensable role in their future success. Internship Program is an important part to give students an opportunity to have experience of practical field. I wish to express my gratitude and heart worthy acknowledgement to Team of The Bank of Punjab whose inspiration helped me in the completion of this report.The Bank Of Punjab me able to present my tiny effort. A Customer Focused Bank With Service Excellence 6 . By this subjective knowledge along with practical touch.

The Bank of Punjab.The Bank was accorded the status of a Scheduled bank by the State Bank of Pakistan on 19-09-1994 and as a consequences the bank was authorized to operate throughout the Pakistan as a full fledge Commercial Bank. Present Authorized capital of the Bank is one billion rupees and liability of the shareholders is limited.The Bank Of Punjab The most important point in an Internship Program is that the students should spend their time in a true manner and with the spirit to learn practical orientation of theoretical study framework. In this internship report I have tried to give details about the Bank of Punjab. This internship report is on my six weeks practical training at a well established and organized bank. Nothing in the companies ordinance 1984. Hussain Agahi Branch Multan. MUHAMMAD Tanveer MBA (Banking& Finance) MBK-07-34 INTRODUCTION TO The BANK OF PUNJAB The Bank of Punjab established under the Bank of Punjab Act 1989. The Bank was established under Section 28 of the federal list stated in the 4th Schedule of the constitution of Pakistan. shall apply to the bank and the bank shall not be placed in liquidation A Customer Focused Bank With Service Excellence 7 . working and the functions of different departments of the bank. 1989 as the first provincial bank of the country. It started functioning on November 15. 1973.

Industry and Agriculture. Remittances. Attractive rates of profit on all types of deposits.The Bank Of Punjab The Bank of Punjab is working as a scheduled commercial bank with its network of 272 branches at all major business centres in the country. Client Deposit in Foreign Currency. Trade and Industry for working capital requirements and money market operations are some facilities being provided by the Bank. promoting savings and providing funds for investments. The Bank of Punjab has indeed entered a new era of science to the nation under experience and professional hands of its management. Exports and Remittances. opening of Foreign Currency Accounts and handling of Foreign Exchange business such as Imports. As agriculture is considered as backbone of our economy the Bank of Punjab has introduced "Kissan Dost Agriculture Finance Scheme" to small farmers. Trade. The Bank of Punjab plays a vital role in the national economy through mobilization of hitherto untapped local resources. Financing. Vision A Customer Focused Bank with Service Excellence Mission To exceed the expectations of our stakeholders by leveraging our relationship with the Government of Punjab and delivering a complete range of professional solutions with a focus on programmed driven A Customer Focused Bank With Service Excellence 8 . Advances to Business. The Bank provides all types of banking services such as Deposit in Local Currency. The lending policy of Bank is not only cautious and constructive but also based on principles of prudent lending with maximum emphasis on security.

The Bank of Punjab provides following types of services to the general public. • Deposit Department • Cash Department  Remittances 9 A Customer Focused Bank With Service Excellence .The Bank Of Punjab products & services in the Agriculture and Middle Tier Markets through a motivated team. improve and succeed to enrich the lives of community where we operate for the talented and high performing employees in everything we do in all our dealings for our customer and each other GENERAL BANKING: In general banking. Core values Our customer Profitability Corporate social Responsibility Recognition and reward Excellence Integrity Respect as our first priority for the prosperity of our stakeholders that allows us to constantly invest.

100. there balance in BBA’s remaining "NIL" for a continuous 6-month period.The Bank Of Punjab • Clearing Department Deposit Department In deposit department following functions are performed: Opening of Account: The primary operation of bank is opening of account. In the cases. by a small margin. The cash reserve ratio is typically low than the current account because the withdrawal against this account is very low. the Charges of these Banks shall be applicable for such transaction. In case of withdrawals from BBA though the ATM Machine of other Banks. Unlimited free of charge ATM withdrawals from Ban's own ATM's will be allowed. The types of account normally used in the bank are: • SAVING ACCOUNTS • CURRENT OR DEMAND ACCOUNTS • FIXED ACCOUNTS Saving Accounts (PLS): These types of account are designed to encourage the saving habit of the customer and lead to long-term or invest relationship. No profit will be Payable. 000. Account holder will be allowed a maximum of 2 deposit transactions and 2 checking withdrawals. Basic Banking Account (BBA) The minimum initial deposit will be Rs. which can be drawn by the depositor at my time by representing a cheque to the bank. Rates of interest are typically ahead. Savings accounts with the banking sector represent a very small proportion of total deposits. Bank saving accounts are in the nature of deposits accounts and are not normally available for drawings. free of charge either through cash or through clearing per month otherwise service charges of a regular banking account shall be applicable for that month as per Bank's Schedule of Charges. such accounts will be closed. Customer can make any withdrawals from type of account. Current or Demand Account: These are those deposits. No fee (service charges) for maintaining such accounts will be charged. People deposits their money in A Customer Focused Bank With Service Excellence 10 .

AN ACCOUNT OPENING FORM IS FILLED IN A prescribed printed account opening form in duplicate is provided to the applicant for opening a new account. The cash reserve against this deposit are very low because there no fear of with drawl of a month before the stipulated of time. The cash reserve ratio for his account is very high. The operating cost for the handling of this type of account is very high because with drawls are very regular. BOP formatted a single form for all types of accounts. Some other accounts are given as • • • Escrow account Trust account Staff account PROCEDURE OF OPENING AN ACCOUNT: Before giving the procedure for opening an account with BOP. Those people who have surplus funds and want to have save investments deposit the amount in the fixed account. he/she is also required to deposit three recent passport size photographs.e. If the person intending to open the account can’t sign. i. it is higher for longer period and lowers for shorter period. In case the applicant is an illiterate person. a very significant part of money is kept under current or demand account. The form is filled in and signed by the person intending to open the account at specified places. The rate of this type of deposits is higher than saving bank accounts. the banker fills in the form according to information A Customer Focused Bank With Service Excellence 11 . The rate of interest given to depositor varies with the length of deposit. Fixed or Terms Account: Fixed accounts are those. which are deposited for a fixed period of time and repayable after the expiry of stipulated time to the customer. it is important to note that a copy of National Identity Card is deposited with the bank when opening a new account. On this type of account of interest transfer of cash or by cheque takes place at sight. No paying books or passes book or cheque is issued to the customers against these depositors.The Bank Of Punjab this account they gave a ready command on their account in developed and under developed countries of the world.

Type of account.Card) Deposit of Initial Money: The account opener fills in pay -in-slip and deposit the initial money with which he willing to open the account.at present.S. The Cheques that are presented for either A Customer Focused Bank With Service Excellence 12 . This contains some (10. which are read by him or read to him. 500/. Payment of Cheques: It is considered. as the simplest work in consumer banking operations. The name. 25. Important rules and regulations applicable to this account and The signature along with the account number of the introducer. Status of account. the specimen signature of the account opener is obtained on the specimen signature card and held as specimen signature card (S. Type of Currency. The bank holds the original account opening form and duplicate copy is provided to the account holder for record. Minimum cash for opening of account is Rs2. profession / business. The account opening form contains the following information.The Bank Of Punjab provided by the applicant and obtains his/her thumb impressions (right for female and left for male) at the signature places. but actually it is not that simple. the banker issues a “Cheque Book” to the account holder. No account to be opened without cash. Issuance of Cheque Book: When the account has been opened. Declaration: The signature of the account opener is also obtained on a “Declaration” by which he binds himself to abide by rules and regulations of the bank. Specimen Signature Card (S. Initial Deposit of Money. Name of operating person and capacity. address. account # and signature of the introducer. NIC # etc The name.S card): After the account opening form has been properly filled up. 50 or 100) leaves to be used for withdrawing money from the bank.

Transfer Delivery. There are few points to be noted while scrutinizing a cheque for payment or deposit. Provincial tax Customer Account Cash Account Maintenance: The second major department in consumer banking is the Maintenance of different types of Accounts. This department Marjory consists of the following works.e. But the cheques. As the cheques are taken for deposit in customer’s account. i. which are presented for deposit in accounts of customers.The Bank Of Punjab payment or for deposit are the main points where most of the frauds occur.. Clearance or Collection. are not taken against tokens.    Account opening procedures Issuance of cheque books Deposit and withdrawal of cash 13 A Customer Focused Bank With Service Excellence . scrutinized and the presenter is issued a token. ENTERIES Entry name Opening of account Issuance of cheque book Deposited in account Drawings Cash Customer account Cash Customer’s account Dr Cr Customer’s account I. rather a pay-in-slip is to be filled in and the cheque is presented along with that slip. Date of the cheque Signatures of drawer Signature of Presenter Amount in figures and words Branch stamp Account number of the drawer Crossing in favor of any other person Cheques for cash payment are taken from presenter. Central excise duty II. a Cheques Receipt Summary is prepared in which cheques are entered according to their category.

Requirements • • • • • Specific request containing valid reasons for reopening of closed account Copy of CNIC Fresh know your customer form Fresh introduction Written application by the customer to the bank of Punjab manager Transfer of account All the banks specially the bank of Punjab provide the of the transfer of account from one branch to another branch within the city and outside the city of the same bank without any charges. I have done many of these works with my own hands and watched carefully the remaining procedures.The Bank Of Punjab  Monthly provision of profit        Posting of deposit and withdrawals in computer Issuance and payment of Term Deposit Receipts Issuance of Call Deposit Receipts Daily balancing of accounts in computer with other summary sheet Printing of daily transactions Printing of Balances of all types of accounts (Jotting) Checking of print-outs All these procedures. Reopening of closed account Closed accounts are not allowed to reopen but inoperative and unclaimed account can be reopened. except few. Dormant and inoperative accounts Type of A/C PLS/BBA CD Period for dormant 12 month of last operation 6 month of last operation Period for inoperative 24 month of last operation 24 month of last operation A Customer Focused Bank With Service Excellence 14 . are daily repeated.

shortly all other important remaining cities would be covered by the system The introduction of the automated clearing involved creating local stands for encoding cheques and other instruments. A Customer Focused Bank With Service Excellence 15 . sorted out bank wise and then sent to SBP for debit/credit to the account of the concerned bank.one copy head office of concerned bank and one copy and instruments send to the relative branch.The Bank Of Punjab CLEARING DEPARTMENT Collection of Cheque: Collecting the proceeds of Cheques/drafts of BOP and other banks is also one of the primary functions of The Bank of Punjab. sent directly to those branches. assisting banks in preparing standard code line. Then the banker enters the details of the cheque in the system The banker then sends the cheque for clearing through NIFT. However. The automated clearing system came in to operation in Karachi as the first center in 1996.Peshawer. For collection purposes all the Cheques drawn on the other branches of The Bank of Punjab. the Cheques drew on a bank other than The Bank of Punjab is collected through “clearing”.Hyderabad.Islamabad. Then NIFT sort all the cheques bank wise and branch wise after sorting the cheques they make the summery and one copy send to SBP.Rawalpindi. What Is NIFT? Until a few years ago the cheque sent in clearing used to be collected at the main branch of each bank. The balancing was manual and delays were a common feature.By the end of 2005 it has spread to Lahore.Multan. In 1996 a private company was incorporated by the name of National Institutional Facilitation Technology Limited to handle this most important segment of banks business. The system operation has proven to be a very successful arrangement. PROCEDURE INVOLVED IN COLLECTION OF CHEQUE The procedure is that when a cheque is deposited with the BOP for collection first of all bank puts its “Crossing stamp” on the cheque and fills in credit -slip the counterfoil of which is provided to the depositor.Faisalabad.Quetta.

CASH DEPARTMENT The main purpose of cash department is that it deals in money. details of cash payments and received A Customer Focused Bank With Service Excellence 16 . PAYMENTS The payments side deals with • • Payments of check Remittances. * Acceptance of deposits.e. cash officer is responsible to maintain the cash balance book.The Bank Of Punjab The receiving branch will post the cheque in the ledger/computer and write it in the “Transfer Book”. security in a sense that there should be no embezzlement of funds or in money leaded to bank by any party or person.  Receipt  Payment Receipts: The receipts side deals in * * Collection of funds. The efficiency of bank is also related to this department the more efficient the bank is the stronger and busy is the cash department. Then it will send an “Inter Branch credit advice” (IBCA) to the chequesending branch that will then credit the amount of the cheque to depositor account. which has to go through clearing. therefore cash is the top most priority of Bank. Cash department is divided further in two category i. Another aspect is that cash department is for the security purpose. Collection of utility bills. As bank is borrowing and lending institution. In case the cheque is sent to a bank. opening balance. CASH BOOK BALANCE At the end of working day. The cash balance contains the date.

he can do so by obtaining a Demand Draft. DD is a very secure method of transferring the money from. 12345Date Amount of DD both in words and figures Name of the beneficiary Name of the city where this DD will be payable Signature and address of the applicant A Customer Focused Bank With Service Excellence 17 . When a person wants to transfer his money to anther person having account with any other bank. notes (currency). The money is remitted by means of: 123Demand Draft (DD) Mail Transfers (MT) Pay Order Demand Drafts (DD): The most common means of remittance in the bank is Demand Draft. one place to another.The Bank Of Punjab in figures Rs.e. like other Commercial Banks undertakes to remit or transfer money from one place to any part of the country and outside the country. closing balance. denomination of Govt. In this an application the applicant request the bank to transfer his money to the other place and that all the danger or risks will be born by him. The consolidated figure of receipt and payment of cash is entered in the cash book and the closing balance of cash is calculated from that i. (Opening balance +Cash receipts Payments =Closing Balance) - Remittance of Money: The Bank of Punjab. In this form following details are given. which we have. Procedure: The person who wants to obtain a DD first of all fills in a prescribed application form. And Ps. The purpose of DD is to secure the amount. It is checked by the manager.

the money transferor resorts to the MT. This advice is sent through a prescribed printed form called “Inter Branch Credit Order” (IBCO). Money is Transferred through MT mainly because the transferor. The Drawee bank will credit the proceeds of MT to the account of the person whose name and account number is written on the MT. and TT is the same. to present it at the Drawee bank. The banker after entering the details of the MT in the issued register issues a MT on prescribed leaf.The Bank Of Punjab The banker will calculate and write the amount of the commission. which may contribute to the loss or delay on the part of both the banker and the DD holder. So in order to avoid above mentioned risks. The cashier puts the received cash stamp on the form in the “DD issued register” and then he issues a DD on a prescribed printed leaf. Mail Transfer (MT): To transfer money from one place to another through a bank the second means of remittance is Mail Transfer generally called MT. Telegraphic Transfer (TT): The quickest means of remittance in the bank of Punjab is Telegraphic Transfer normally called TT. Finally the DD is signed by at least two officers of the bank. unlike in case of DD does not want to obtain and take care of any instrument like DD and. and postage. The Drawee branch on receiving the advice of DD will enter it in the “DD payable Register” and make a voucher by crediting the amount of DD to the DD payable account and debiting the originating branch of the DD through the same IBCO (in case of telegram will make separate debit the amount the DD from the Bills payable DD payable Account. of course. The application procedure involved in the TT is almost the same as is in the case of MT. The applicant only has to point out which of these A Customer Focused Bank With Service Excellence 18 . The DD may be either opened or crossed. In this form the applicant himself has to give name of the branch and account number of the payee where he wants to transfer the money. to be charged on the issuance of DD. The bank receives commission and postage charges along with the amount of the MT. In fact in the bank of Punjab the Application form for DD. The Drawee bank will make the payment on such a DD only after verifying the test number. The DD is then handed over to the applicant. So you may make the payment of this DD to the payee. Remittance of money through MT requires the filling in of the application form by the applicant just like in the case of DD. on the application form and will give the application form back to the applicant who will deposit the amount with the cashier. The bank after issuing DD sends the Drawee branch an advice to intimate that we have credited the proceeds of this DD at your end. with-holding tax. MT. To avoid any fraud the amount of DD is also “PROTECTOGRAPHED ON THE DD”. The bank through registered post to the Drawee bank sends the original MT.

Manager can grant the credit limit to each customer with in the declared limits approved by the controlling offices. Board of directors and Credit committee of BOP design all types of decisions for extending credit and inform about these decisions to the branch managers. The charges of TT is more than the charges of DD and MT. long terms financing for domestic and international trade.The Bank Of Punjab means of remittance he wants to opt.” The most important activity of the bank is the granting of credit to the customers. Banks grant credit to the customers for a certain period of time. Pay order is used to transfer the funds within the city while Demand Draft used to transfer the funds between the city. BOP provides short term. The Drawee branch after getting the Test Number agreed respond the TT firstly crediting the Bills payable TT payable Account and debiting the originating branch and then by crediting the account number of the payee and debiting the Bills payable TT payable Account. So in this way money can be transferred from one place to another within 24 hours. The banks provide credit to the customers so that they can purchase ahead of their liability. There is a clear hierarchy that has been approved by Board of Directors circulated through document of empowerment. Pay Order: Pay order is a guaranteed document issued by the bank. Some other function of cash department are given as • • • Physical verification of cash Issuance of foreign currency notes Issuance of fresh currency notes • Prize bond selling and buying • Travelers cheque CREDIT It may be defined as “The sale of goods and services and money claims in the present in exchange for a promise to pay in future. A Customer Focused Bank With Service Excellence 19 . Originating branch fax TT Message to the Drawee branch with secret Test Number applied to it. the payment of which is made by the same branch issuing this pay order.

the borrower is required to adjust the finance provided by the Bank within the stipulated expiry period.B. thereby creating a Running Finance. • • ADVANCES GUARANTEE ADVANCES Advances provided by bank are of the following two types. Running Finance facility is provided A Customer Focused Bank With Service Excellence 20 . according to amount of loan. The power to sanctioned loans had been delegated for controlling different offices. • • FUNDED NON-FUNDED FUNDED In fund based bank contributes a large amount of the fund based on clarified as follows. Withdrawals on the Current account are allowed in excess of the credit balance which the customer has maintained.The Bank Of Punjab By giving these facility to the customer’s large scale production of commodity can be achieved and economic growth rate can be increased. Running Finance facility is given to meet the Working Capital needs of business.P. Running Finance: Among the various modes of Bank Financing.        DEMAND FINANCE TERM FINANCE RUNNING FINANCE CASH FINANCE AGRICULTURE FINANCE CONSUMER FINANCE STAFF FINANCE They are provided primarily to fulfill mandatory credit targets assigned by the State Bank of Pakistan or in return for refinance provided by the S. The details are as under. The Bank of Punjab provides following three types of credits to the customers. credit lines afforded to customers under the above head (Running Finance) are the most commonly used. Under this type of financial accommodation.

The customer has full liberty to draw money as and when needed. building. The balance may increase or decrease within the finance limit. spares. repayable either in periodic installments or in lump sum. R. semi-finished goods. we can regard it not as a single continuous finance. The customer is allowed the facility of withdrawals and deposits of funds at his convenience. but could operate the account freely. at a fixed future date. but as a series of short-term finances. produce or merchandise.F. finished goods. All the facilities are as running finance. cash finance can be renewed. as explained in case of Running Finance. It is provided either against pledge or hypothecation of goods. The customer would be required to adjust the advance within the expiry period. which is done automatically by the computer. It is a multi transaction account. residential houses etc.The Bank Of Punjab against the Hypothecation of tangible prime securities and collaterally secured against the mortgage of properties i. Mark up on Running Finance is calculated on the basis of daily debit balance. a fixed amount of financing accommodation allowed to the borrower for a fixed period. 23Just like running finance.F. Demand Finance: Under the above classified head. within the sanctioned limit. Bearing in mind its revolving nature. A Customer Focused Bank With Service Excellence 21 . on the actual amount utilized on daily balance basis. Characteristics: 1Exactly like running finance (R. Bank receives return on C.F.). Cash Finance: Cash Finance is also provided on mark up basis. cash finance is also a multi transaction account. Limit can be renewed time and again at the discretion of the bank. To deposit the same in the account when not needed.e. land. on reducing balance system. Characteristics: Running Finance is shown as a debit balance (-ve). etc5. 4Cash finance generally provided against goods and merchandise like raw materials.

Equipment.F.F. is a single transaction account. It can’t be renewed.F. As we have described earlier bank does not like such finance. B-Fixed Asset Finance: Fixed Asset Finance is medium-cum-long term finance and its period is from 5 to 10 years.F & C. It includes the following kinds of finances: A-Hire Purchase Finance: It is medium term finance and its repayment period is up to four years. The installment once paid can’t be taken back. Demand Finance is repayable on demand but practically its repayment period may be up to 3 to5 years.F & C.F is received on the full amount of finance for the whole period for which it is provided. It is for financing fixed capital investment in industry and agriculture. Characteristics: 1According to terms of the agreement. D. 6D.F. Term Finance: Term Finance is medium and long-term finance. 3Unlike R. The monthly paid into the account reduces the original finance and is meant to clear the same. It is for a fixed period and repayable within that period in periodical installments.The Bank Of Punjab This accommodation is extended in lump sum for the mutually agreed period and the borrower has to repay the entire amount of finance. like installation of new plant etc. Vehicles. is mostly against the security of fixed assets or properties. 4In contrast to R. A Customer Focused Bank With Service Excellence 22 . etc. It is for financing Machinery. 5the return on D. 2It may be repayable in lump sum or in periodical installments. together with mark-up at the agreed rate on or before the expiry date.

1.2.0 (M) for stocks of seed. We have launched a Kissan Dost Agrimall Finance Scheme. fertilizers. who will be the clients of Franchisees. pesticides and oil etc. PSO and Angro Services have established a joint venture company in the name of the Agrimall (Pvt) Ltd to provide agro services under one roof through its Franchisees. L/C Limit: Maximum Rs. Amount of finance: The amount of Finance will be 9. Millat Tractors. The farmers.2.3.The Bank Of Punjab AGRICULTURAL FINANCE Purpose of finance: Four renowned companies of the country such as M/S Ali Akbar Group. The Agrimall (Pvt) Ltd has approached our Bank to provide financial help to their franchisees to establish and run these Agrimall under their specialized management through out the country.5 (M) for import of pre-engineered construction material for construction of site one time transaction The Schemes are: A Customer Focused Bank With Service Excellence 23 . All facilities required by the Franchisees of the Agrimall (Pvt) Ltd will be provided through this scheme. Lease Finance: Maximum Rs.50 (M) for purchase of tractors and machinery.5 (M) for construction of site. will also be provided production loans through Bank’s Kissan Dost Agriculture Finance Scheme (For purchase of inputs).5 (M) maximum for all package of facilities mainly as under: Demand Finance: Maximum Rs. Running Finance: Maximum Rs.

18. various taxes and other central and provisional obligation can be paid in it. Raffles Branded Computer Systems on installment basis. It also maintains the government’s accounts. • Limit Rs. • • • • 0% Mark up (12 month) 0% Down Payment Free Home Delivery Tenure 12.000 24 A Customer Focused Bank With Service Excellence . Super Asia.50. Samsung.24.000 to Rs. It also provides the facility of pension to the retired employees of the government. In this regard. Employees of various departments according to the advice provided by treasury office. Daikin & Daikool Air conditioners. Haier. Along with it BOP launching new and new schemes in consumer finance. PEL. Some are as follows: BOP ASSAISH LOAN: It is a demand finance loan to purchase specified consumer goods of renowned companies like LG. Philips.36 months BOP QUICK CASH: A running finance loan for salaried persons to meet all kinds of personal needs.The Bank Of Punjab          Kissan Dost Agricultural Finance Scheme Kissan Dost Tractor Finance Scheme Kissan Dost Aabiari Scheme Kissan Dost Mechanization Support Scheme Kissan Dost Farm Transport Scheme Kissan Dost Eslah-E-Araz Scheme Kissan Dost Live Stock Development Scheme Kissan Dost Live Stock Scheme Kissan Dost Commercial Agro Services Finance Scheme CONSUMER FINANCE The Bank of Punjab also performs some special function in the field of consumer finance.200. It also disburses the salary among the govt.

000.7.00 For Renovation Rs.1.3.500.200.000.The Bank Of Punjab • • Markup Rate & Annual Fee Lowest in the market Period one year(further renewable) BOP CAR LOAN: A demand finance loan to purchase locally assembled and manufactured cars for personal use.300.300. • Limit for purchase/construct Rs.000 to Rs.000 Down Payment 10% to 20% Mark up Rate Lowest in the market Repayment 3 to 5 years in equal monthly installments BOP HOUSE LOAN: A demand finance loan to purchase house/flat or construct house or renovate existing house.000 • • • Bank Financing For purchase/construction up to 70% of assessed Value For Renovation up to 20% of assessed value Markup Rate Lowest in the market Repayment For purchase/construction 3 to 15 years For Renovation 3 to 5 years SME Financing SME means an entity ideally not being a public limited company which does not employ more than 250 persons (if it is a manufacturing concern ) and 50 persons (if it is a trading concern ) and fulfils the following criteria  A trade/services concern with total assets at cost excluding land and buildings up to RS 50 million  Manufacturing concern with total assets at cost excluding land and building up to RS 100 million 25 A Customer Focused Bank With Service Excellence . • • • • Limit Rs. 000 to Rs.000 to Rs.

F facility to meet working capital requirement  Limit amount Rs.F.F. 1 million – 5 million  Markup rate based on floating rate  C. 2 million – 20 million  Markup rate on floating rate based  C.F facility to meet working capital requirement  Limit amount Rs. facility is for 1 year and renewable of satisfactory conduct of account A Customer Focused Bank With Service Excellence 26 . facility is for 1 year Dealers/ Franchising Scheme Features Its features are  C.The Bank Of Punjab  Any concern trades services or manufacturing with net sales not exceeding RS 300 million as per latest financial statements SME Products • • • • CNG Filling Stations LADY Entrepreneur Financing Dealers / Franchising Scheme Motor cycle Dealer Franchising Scheme CNG Filling Station Features Their features are  Working Capital loan  CF facility for 1 year  Project Financing  Demand Financing facility for 5 years  Limit amount PKR 2Million-30Million  Markup rate will be based on floating rate Lady Entrepreneurship Financing Features Its features are  C.

But it is contingent liability of the bank & in the case of needs Bank is supposed to honor it promise.The Bank Of Punjab COLLATERAL The security or collateral to taken in giving advances  Hypothecation of stocks  Owners commercial building  Personal guaranties / partners / directors  Mortgage of properties Documents The document to be obtained from the customer  Copy of CNIC  Copy of Partnership Deed if partnership firm is apply for facility or Memorandum of Association  Copy of Balance Sheet  Copy of Financial Statement NON-FUND Non-fund base business is the business where the Bank is not involving its funds at the time of sanction of certain facility. According to local rules and regulation the policy for issuance of guarantee can be charged. Am amendment in the guarantee can be made after giving written 27 A Customer Focused Bank With Service Excellence . The person provides bank issue guarantee after 100%cash collaterals with 35% in the form of cash. The two officers whose signatures appears in the specimen signature book of bank and also counter sign by the controlling office must sign each guarantee. Both officers must also sign any amendment. The guarantee issued is treated as contingent liability. • • GUARANTEE Letter of credit GUARANTEES A person to responsible for the debt of another person defines a guarantee. Both bank and guarantor can set the expiry of the guarantee. The minimum period is one year and the guarantee can be reissue for extra period with paying charges.” A guarantee is a promise between one person to another person or party to answerable for the debt of the third party. Bank accepts only other bank guarantee but in some cases personal guarantee is also accepted.

PERFORMANCE BOND When the project is completed. Bank charges commission on issuances of guarantee as per their schedule of charges. The bank provides following types of guarantees to the customers.  Better focus on customer services and customerization. During one year. SBP’s prudential regulations requirement and its SROs and international banking requirement as well as to its own set policies. STRENGTHS  Strict adherence with the banking procedures requirements.  Strong and its attractive products. available opportunities and possible threats to The Bank of Punjab. If some is recovering then it is good otherwise bank deduct the amount from its profit and starts the legal procedure against the property pledged by the customer to bank SWOT ANALYSIS Following are the strengths.  BID BOND  MOBILIZATION BOND  PERFORMANCE BOND BID BOND The facility provided at the time of bid opening is called bid bond. if there is any mishap in the project the repair otherwise authorities claim the performance charges from the bank. the bank provides this type of facility to the customer.The Bank Of Punjab application to issuing branch.  Flexibility with the changing environment. MOBILIZATION BOND When the bid is accepted. bank puts this case for recovery. If the value of guarantee is reduced by the amendment the liability amount will be reduced and if will value is increased additional liability entries will be passed. If the party did not pay the amount in the stipulated time period. A Customer Focused Bank With Service Excellence 28 . weaknesses. the contractor about the performance of the project provides a performance certificate for one year.

agri-financing. which facilitate bank to get market excellence and move towards prosperity and development. A Customer Focused Bank With Service Excellence 29 .  In comparison to other banks BOP providing high excellence services like home.  Never prefer to be a leader and prefer to be a follower of others  Slow improvement and acceptance of technological changes. car.The Bank Of Punjab  Induction of the highly qualified professionals to change overall set up.  Customer gives suggestion for the improvement of bank. and continuous improvement.  Focus towards innovative and creative banking. security system concentration like cameras installed and security guards available all the time. quality.  Bank having good friendly environment.  Higher management committed to the development.  More emphasis on deposit accumulation and less on their mobilization.  BOP has tried to move rapidly in expanding branches network and increasing the range of products and services. deliver quality service that contribute to brand strength.  BOP developing & delivering the most innovative products manage customer experience. establishes a competitive advantage and enhances profitability. record kept properly. and integrated circuits between branches and personal computer provided at every desk.  Customer’s behavior shows that they feel proud to being as an account holder in BOP. online banking.  Strong policy and concepts are clear WEAKNESSES  Process of development is bit slowly due to its conservative approach.  Modernized banking system with highly integrated informative system. thus providing value to the stakeholders of the bank  There is fastest processing.

Agro Based Sector B.The Bank Of Punjab  Lack of professionalism.  Mismanagement of time is another big mistake in BOP branches. it should advertise extensively. OPPORTUNITIES  Greater potential and opportunities for Credit Division if Liberal Policies being adopted.  Short team  No arrangements for staff training. Modaraba Business THREATS  More innovation and creative banking by the local as well as foreign banks like introduction of profit on CD account by ABL other different schemes by UBL and personal financing schemes by banks as well as installation of ATMs and RTCs by A Customer Focused Bank With Service Excellence 30 .  Adoption of information technology will improve the customer services.  Weak marketing strategies.  Can grab more market share for its ATMs. Personalized Financing D.  Bound to lease only new vehicles. RTCs.  No innovation in IBD product. Leasing C.  More mobilization of accumulated deposit is possible through innovative financing to: A.  Profit rate is higher.  Inclusion of highly qualified professional can change the whole scenario and position of the bank if they have given the due liberty in performing their duties. remittances and forex department through effective promotional and liberal policies.  People are not well aware about the products of BOP.

The people motivated to save money by offering the deposit through various investment schemes. INTRODUCTION OF VARIOUS PROFITABLE SCHEMES A big portion of the home remittance is sent by Pakistani working abroad through The Bank of Punjab. RECOMMENDATIONS SUGGESTIONS FOR IMPROVEMENT  From the quantum of the profit and its financial data it can easily judged the after privatization The Bank of Punjab is performing well.  Following are my observations and suggestion to improve the efficiency for the development of the bank. the competition has increased a lot.  Induction of the banking services through E-commerce is a great threat for its survival. MCB. A Customer Focused Bank With Service Excellence 31 .  Introduction of credit marketing by local and foreign banks is badly affecting the mobilization of the BOP’s deposits due to the non presence of such department in it.The Bank Of Punjab these banks have broken the monopoly of the MCB and need development of new innovative and creative product. As we know a big portion of this amount is wasted purchasing of luxuries. The controlling body is responsible for the productive performance of the bank.  The privatization of other banks is also a threat for the Bank.  Introduction and adoption of information technology as well as promotion of the computer culture by the local as well as foreign banks will definitely affect the services and business of the BOP. The rate of profit should increase 1% or 2 % more than the other banks and it would be profitable step for bank.g. Due to the privatization of the different bank e. Its deposits are growing dayby-day and so its profitability.

The amount spent by the bank on employment. Some more reading material should be provided the purpose should be to educate the employees with the advance studies in their field. REFRESHER COURSES Refresher courses for the staff are most important in any international organization. INCENTIVE TO EMPLOYEES Bank should give some more incentive to its employees in order to remove the conflict between lower and higher officers and should try to improve the working condition of the bank. Foreign experts can also be called for this purpose. Such system should be designed that every employee who has some problems with his officers can communicate to the higher management and some steps must be taken to improve that. Their promotion policy should be adjusted accordingly.The Bank Of Punjab TRAINING OF STAFF Staff turnover particularly of trained staff result in financial and other losses. Manual procedure is still there hence computer 32 A Customer Focused Bank With Service Excellence . induction and training of an outgoing officer constitutes to beat till another officer should ready prove his work. In my opinion all the employees should have regular job experience all out-look towards banking. All the employees should have these courses according to their requirement. SPECIAL TRAINING ABROAD Every year some of the employees should be sent for training to other countries and employees from other branches should be brought here. The exodus of bank officers in the past has worsened the situation. COMPUTER SYSTEM Though The Bank of Punjab installed computer yet the system has not totally shifted on computer. CHANGE THE NATURE OF WORK Most of the bank employees are sticking to one seat only with the result that they become master of one particular job and loose their grip on other banking operation. The employee should be provided the opportunities to attend and participate in seminars and lectures on banking.

OVER EMPLOYED During my internship period I felt that at some place The Bank of Punjab is over employed which is causing in expenditure. profession skills and experience with the job specification must be considered while posting and placing the employees. CUSTOMER PROBLEM People have to wait for en-cashing their cheques for about 10 to 12 minutes. A Customer Focused Bank With Service Excellence 33 . SURVIVAL OF THE FITTEST It is not nearly a sentence or idiom right man for the right job according to his qualification. I think that the best way out for this problem is to pen new branches in remote areas and encourages the employees to work for creating the habit of saving in the people. It should be fully availed and system should be fully computerized. It should not be like that a person who may be a very good worker but possessing lack of managerial capabilities should be posted as manager. Like wise in commercial institution like bank this system should be introduced with full force means achieve smart. Therefore I suggest that computers and other electronic machines should be installed in the bank so that the time could be saved. should be reward and appreciated. while on the other hand lazy. educated skilled. This delay is due to manual work. disliking prejudice and patrimonial. lethargic. But as second place in command or some heavy working department wished persons together with managerial qualities and manners in the same fashion should be posted and placed as manager. self spoken and well versed staff personal. REWARD AND PUNISHMENT It is human nature one goes behind reward and incentives while and try to avoid from punishment. rough-dealers and ill mannered must be warned penalized and punished but this all should be on merit and considering the policy of honesty is the best policy and not due to some personal liking. which is not good for the reputation of bank. heard.The Bank Of Punjab facility is not fully availed. It is therefore suggested certain schemes and checks may be introduced in banks to increase efficiency through reward and punishment system.

A Customer Focused Bank With Service Excellence 34 . The internee should be given timetable mentioning the number of days he has to work at different places in the bank.The Bank Of Punjab OTHERS The period of internship should be divided in to the number of department of the Bank of Punjab. On the first 4 days in each department internee should be given a lecture the officer of the department concerned about working of the department.

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