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Internship report on

Trust Plaza Branch Gujranwala (0006)

In the Name of

Most Merciful and Compassionate the Most Gracious and

Beneficent whose help and guidance I always Solicit at
every step, at every moment.


Feeling grateful or appreciative of someone or something in your life

actually attracts more of the things that you appreciate and value in to your
( Northrup Christiane )
First of all I am indebted to the Lord of our life & of everything in the universe
for His help in the project. The task was impossible without Almighty Allahs
help and concurrence. I am also thankful to my Parents for their tiresome
efforts in bringing us to this stage.
I wish to express my profound gratitude & sincerest appreciation to the
respected branch manager, Mr. Rao Safdar Khan for his persistent guidance,
constructive criticism, friendly discussions & continuous encouragement
throughout the design phase, which gave me a kind of enthusiastic feelings
towards the accomplishment of this report.

I am also grateful to the BOP main branch Staff Gujranwala as they have
been really supportive and co-operative during my internship which enabled
me to complete this report.

ACKNOWLEDGEMENTS........................................................................................................................... 3
EXECUTIVE SUMMARY:............................................................................................................................ 5
PART I (INTRODUCTION).......................................................................................................................... 7






OVERVIEW OF ORGANIZATION............................................................................................. 9
1.1).1Brief History................................................................................................ 9
1.2.2).Organization Structure............................................................................. 11
1.2.3) Awards & Achievements............................................................................... 11
1.2.4) Product/Service Lines............................................................................... 12
1.2.5) PESTL Analysis......................................................................................... 13
1.2.6) Role of BOP in Economic Development:.........................................................14


ORGANIZATIONAL Hierarchy STRUCTURE.......................................................................... 16

1.3.1)Organizational Hierarchy Chart.................................................................16
1.2.2)Number of employees............................................................................... 16
1.2.3)Main Offices.............................................................................................. 18

1.2.4) Functions of
1.2.5) Nature of
1.3.6) Introduction of all Departments...........................................22-23


............................................................................................... 42

1.4.1) The departments worked in........................................................................... 46

1.4.2)Detailed description of activities performed................................................43

1.4.3)Summary of Learning.................................................................................. 56

CONCLUSIONS OF THE REPORT............................................................................................. 58

2.1 Summary of key conclusions.......................................................................... 58
2.2 General observations about Banking sector...................................................59
2.3 SWOT Analysis .............................................................................................. 60


RECOMMENDATIONS............................................................................................................. 63


Executive Summary:
I chose Bank of Punjab (BOP) for my internship after careful
consideration as it is the leading commercial bank of Pakistan.
This is the age of specialization; every person must be capable in
his/her particular field. Some practical experience is necessary to enter the
field because only education given in the universities is not enough to
compete with the world wide changing situation. The field work is difficult
and complicated. This is a good reason why the students of business
administration are being given a fair chance to get the practical area in
which students have to enter after completing education.
Internship is a vital part of Bachelors of Business Administration
program. This report is a result of six week practice as internee at BOP Main
branch Gujranwala Trust Plaza. Experience was full of knowledge regarding
various facets of banking sector. This report consists of practical experience,
which I attained during internship program.

At the commencement of internship at BOP, I was aware of what I am

going to learn and observe. People usually use to say that practical works is
quite different from books or what has been educated in colleges and
universities. In real life, one has to get in touch with public, and how to deal
with them, its not taught in colleges and not in books even. Its what you get
through practical work when you enter in market.
All the information in this report is based upon my observation,
interviews and practical involvement in different tasks during my internship
at BOP
This report is being divided into two parts:
First is introductory portion which introduces the reader with the aim,
scope and objective of choosing and studying BOP and then organizational
Structure, organizational hierarchy chart, how many employees work in the
organization, the location of the main offices of the organization. Introduction
of all departments of the organization is described.
Second part is related to my internee work and introduction of the
branch where I worked in, the detail of supervisors and branch departments
is given. In the last, observations regarding the banking sector, the SWOT
analysis, final Recommendations & Suggestions are given to overcome
loopholes& troubles that are being faced by Bank of Punjab.

Introduction, overview
of organization and
organization structure.
Bank of Punjab is one of the largest commercial bank operating in
Pakistan. It has redefined its role and has moved from a public sector
organization into a modern commercial bank. The Bank's services are
available to individuals, corporate entities and government. While it
continues to act as trustee of public funds and as the agent to the State
Bank of Pakistan (in places where SBP does not have presence). It has
diversified its business portfolio and is today a major lead player in the debt
equity market, corporate investment banking, retail and consumer banking,
agricultural financing, treasury services and is showing growing interest in
promoting and developing the country's small and medium enterprises and
at the same time fulfilling its social responsibilities, as a corporate citizen.

1.2. Objectives of studying the Organization

The primary purpose of this study is to fulfill the requirements of the
four years honors degree in bachelors of business administration. For this

purpose each student of this particular course was required to undertake

training in a relevant organization selected by them, for a period of 1 to 6
The secondary purpose of this internship is to understand how the
theoretical knowledge can be applied to the practical situations and examine
an organizations financial issues and identification of its opportunities/
problems and also suggestion of corrective measures. This internship is also
very necessary to gain confidence and become aware of the mechanism of
an organization. As an internee I want to achieve following objectives during
my internship and organization study:

To familiarize with a business organization.

To familiarize with the different departments in the organization and


their functioning.
I was also keen to gain professional experience in an actual testing


I want to develop my skills in the application of theory to practical


work situations.
To develop my attitude conducive to effective interpersonal


To acquire good work habits and sense of responsibility.
To enhance my learning experience by application of fundamental
concepts previously learned.


To observe, analyze and interpret the relevant data competently and in a

useful manner.


To develop my interpersonal communication.


I want to enhance my knowledge of the discipline of banking


1.2. Overview of the organization

1.2.1. HISTORY:

The Bank Of Punjab (BOP) born with the vision of Passion Reborn and
provided all communities way to explore new opportunities so far. Almost
every facility or services provided by this Bank of Punjab. People are more
focused upon after sale services in Pakistan. Best Complaints registration
and Resolution of Complaints and any such services are available here
through complete guidance what is optimal way to utilize their services.
Many kinds of queries for which can be solvable through visits of Punjab Bank
could be solved through Online Registration services in Pakistan. They are
exists to provides best Quality feedback for retaining images among
customers eye.
There are many Basics Banking services provided named as Retail
Finance, Retail Banking, Agriculture, and Corporate Banking as well as
facilitating Commercial services so far. E-Banking is also there to facilitate
the customer to take eye on their deposits over there in their Bank. Bank of
Punjab is already Customer Focused Bank and always providing quality
Services in Punjab Bank. All other Banks provides Agricultural Facilities own

their own but only Bank of Punjab considered as facilitates more in this Bank
as well.
Agricultural Facilities are named as Agri Finance Branches, Kissan ,
Dost Running Finance Facility, Kissan Dost Lease Finance Facility, Kissan Dost
Cold Storage Finance Facility, Kissan Dost Green House Finance Scheme,
Kissan Dost Livestock Development Scheme and many other Agriculture
Schemes Markup are there to gives their best in facilitating this sector own
their own.

To developed Bank of Punjab into an aggressive and dynamic financial
institution having the capabilities to provide personalized service to the
customers with cutting edge technology and a wide range of products, and
during the process to ensure maximum return on assets with ultimate goal of
serving the economy and society.
To exceed the expectation of our stakeholders by leveraging our
relationship with the Government of Punjab and delivering a








programmed driven products and services in the agriculture and

middle tier markets through a motivated team.

1.2.2. Organizational Structure










requirement for the success of any organization. It provides the basic framework
within which functions and procedures are performed. This chapter describes the
organizational structural of Bank Of Punjab. At present the bank operates through
one central and one head office, four provincial headquarters, twenty circle offices,
307 branches throughout Pakistan. The affairs of the bank are looked after by the
president and Executives Committee. Each provincial head quarter is headed by a
provincial chief and assisted by regional managers. The provincial head quarter
controls the branches in their area.

1.2.3. Awards & Achievements

Excellence Award By The Central Board Of Revenue
The Central Board of Revenue presented "Excellence Award" to the
Bank of Punjab in recognition of the contribution made by the bank towards
Government exchequer.

3rd Kissan Time Awards:

In recognition of Bank's contribution in development and growth of
agricultural sector, the Bank honoured with "Top Bank for Agriculture Loans"
and "Best Bank Crop Insurance" under 3rd Kissan Time Awards year 2006.


Best Corporate Report Award:

Annual Report of the Bank for the year 2005 won 5th position for "The
Best Corporate Report Award" for the Financial sector, adjudicated jointly by
the Institute of Chartered Accountants of Pakistan and the Institute of Cost
and Management Accountants of Pakistan.

16th Bolan Excellence Award:

The Bank was awarded Best Bank Award under 15th Bolan Excellence
Awards distributed in 2006.

Achievement Award:
The Lahore Chamber of Commerce & Industry (LCCI) awarded the Bank
"LCCI Achievement Award" 2006.

1.2.4: Types Of Products:

Bank of Punjab is dealing in different types of account. These are

BOP Current Account
Basic Banking Accounts
BOP Pahlay Munafa Scheme
PLS-SB- Accounts

BOP Senior Citizen Saving Accounts

BOP Gharayloo Saving Account
BOP Ziada Munafa Saving Account
BOP Profit Plus Account
Corporate Premier Account
Corporate Premier Term Account
Munafa Hi Munafa Term Account - III
PLS Supreme Saving Account
FCY Supreme Current Account
FCY Supreme Saving Account
BOP Bai Misaal Term Deposit
BOP Karobar Dost Account
BOP Kissan Dost Term Deposit
BOP Young Lions Saving Account
BOP Senior Citizen Term Deposit
BOP Behtareen Munafa Account


1.2.5: PESTL Analysis

Political and legal environment:









considerations. As the political instability prevails with in the country it

badly affects the working of the bank. This also has its greatest
influence on the profit of the bank and can be result in reduction of
profit. So to reduce the influence of political environment on any
business sector following rules must be applied

To protect banking companies from unfair competition.

To protect consumers from unfair business practices adopted by

banking companies
To protect the interest of the society from unbridled business

Economic trends:
As target of any bank is to maximize its profit and satisfied its
customers. Because of this target banking market requires better consumer
market in volume along with higher borrowing power. This borrowing power
depends on:

Consumer income.
Saving rates.
Consumption patrons.
Rates of interest.
Budget deficit.
Exchange rates.
Cost of living.

Socio-cultural environment:
A society is shaped by beliefs, norms and values. People in a society







organization, society and nature. Following are the main factors which arise
because of change in socio-cultural environment:

Consciousness about services

Concern for environment
Improved customer relation

Technological factors:
Forces of technological advancement have played the most dramatic
role in shaping the lives of people. The rate of change of technology has
greatly affected the rate of growth of economy. New technology is creating
deep rooted affects which could be observed in long run. The improvement
techniques involved in on line banking. In brief PEST analysis affects the
overall banking companies and provides us the information about the
external macro condition.

1.2.6: Role of BOP in Economic Development:

Banks play significant role in promoting the economic activities and ec
onomicdevelopment of a country. Industry, agriculture, trade, commerce and
many other economic activities are highly dependent on banks. Banks help




also help in promoting the growth of internal resources for

development by

attracting deposits into productive loan and investment. Banks not only

collects the savings of the people but also give loans for the development of
industry, trade and commerce. BOP has been playing a major role in
financing and developmental activities in Pakistan. It helps in the growth of
economy in all spheres of our national life. It has contributed significantly to
economic growth of the country and has served to trade and industry in wide
sphere of operations. The BOP was the first bank to introduce scheme of
credit to small borrowers like farmers etc., for the promotion of agriculture.
The bank advances liberal credit for rural and agricultural development.
Small short-term loans are given to the farmers free of interest. These

can be




of fertilizers,




implements. The BOP is able to attract large amount of deposits through its
large number of branches all over the country and thus is able to provide
large amount of loans to different sectors. The BOP is also providing finances
to small-scale industries for the period up to five years; it has introduced the










andmore liberal scale than before. The bank also contributes towards the
earning of foreign exchange though its foreign exchange business in Pakistan
and abroad.



5.3.1: Hierarchy chart of BOP














1.3.2: Number of Employees:

There are currently 62127 qualified employees working in Bank of
Punjab which have always played a key role in the continuous success of the
organization in all fields.

1.3.3: Main Offices:

The BOPs head office is located in Karachi. Its branch details are given


Karachi Branch
Hyderabad Branch
Lahore Branch
Faisalabad Branch
Rawalpindi Branch
Peshawar Branch
Muzafarabad (A.K.) Branch
Mir Pur (A.K.) Branch



United States of America (2)
France (1)
Germany (1)
Bahrain (1)
Bangladesh (4)
Kingdom of Saudi Arabia (1)
Hong Kong (2)
Republic of Korea (1)
Japan (2)
Afghanistan (4)
Turkmenistan (1)
Kyrgyzstan (1)
Azerbaijan (1)


USA (Chicago)
Kingdom of Saudi Arabia
South Korea
China (Beijing)
Uzbekistan (Tashkent)
Kyrgyz Republic

BOP REGIONAL OFFICES (Extensive Local Coverage)

Karachi (South)
Karachi (West)
Lahore (Central)
Lahore (East)
Dera Ghazi Khan

Dera Ismail Khan

1.3.4: Functions of the Branches
All the actual banking functions are carried out in the branches. Thus the
function of the branch includes the following:

The primary function of the branch is collection for deposits, which

are the lifeblood of a bank.

The branches also channel the deposits into productive investment

through the proper channel.

The branches deal with the public courteously and efficiently.

The branches are carrying out all the banking function etc.


Bank Of Punjab offers a range of business for their customers:
1. Retail Banking
2. Corporate Banking



Retail Banking

Refers to banking in which individual customers of BOP use local

branches for their financial activities.

In this type of banking BOP do transactions directly with consumers,

rather than corporations or other banks.

Services that BOP Bank offers include;

Account Holder

Savings and Cheque in their Accounts.

Loan on Mortgages.

Personal Loans.

Issuance of ATM/Debit Cards.


Account Department
Trade Department


i) General Banking Department

Account Opening
Foreign Currency Department

ii) Credits Department

Consumer Finance
Corporate Finance


Small and Medium Enterprises

Agriculture Finance


Accounts Department

Accounts Department is one of the most important departments

operating in a bank. The major functions of the Accounts Department are;
the preparation and Reconciliation Statement of BOP Statement with SBP,
maintenance of the entire Voucher records in their respective head and
physical records of all the transaction. For which the bank officer maintain a
beg for each day. Account Department also maintains the day to day
miscellaneous expenses like; stationary, refreshment etc. or we can say
maintenance of petty cash book account.



Trade department is further divided into two sections:

1. Export
2. Import

v) Export Department
Export department is an important department in corporate sector. It comes
under trade department which is the second profit earning department after
The exporter must contain the following registration criteria to export:

The exporter must have export registration from EPB (Export Promotion

It must also have registration with LCCI (Lahore Chamber of Commerce
and Industry)

It also has to be registered with Exporter Association with the

particular product it exports.

The exporter must have account with BOP.

International Trade is done in the following four currencies;

Japanese Yun

Amount receivable for all products is maximum 180 days except for carpet.
The receivable for carpet is allowed up to 270 days because of its slow
The transaction is done in four ways in this regard;

Open Account
Advance Payment
Letter of Credit(LC)


Open Account:

In open account exporter and importer agrees on a certain rate and

exporter make commercial invoice. The importers make payment in to the
exporters account.

Advance Payment:
In this transaction the exporters have trust deficit on the importer. So
the exporter demands an earlier payment before shipment.

LC (Letter of Credit):

Letters of credit are used primarily in international trade, for deals

between a supplier in one country and a customer in another. The parties to
a letter of credit are usually a beneficiary who is to receive the money, the
issuing bank of whom the applicant is a client, and the advising bank of
whom the beneficiary is a client. Almost all letters of credit are irrevocable.

Steps Involved In Opening L/C

After a contract is finalized between buyer and seller, buyer's bank

supplies a letter of credit to seller.

Seller sends the commodities to a carrier in exchange for a bill of

lading in case of ship and air way bill in case of Airplane.

Seller provides bill of lading/Airway bill to receive payment. Seller's

bank exchanges bill of lading for payment from buyer's bank. Buyer's
bank exchanges bill of lading for payment from buyer.

Buyer provides bill of lading to carrier and takes delivery of goods.

Documents required for LC:

Documents required for LC are as follow;

Documents of the exporter under their letter head

Commercial Invoice
Packing List
Certificate of Origin from LCCI
Bill of Lading
Inspection Certificate

Additional Certificate:

Declaration certificate from Custom

Scrutiny Memo (In case BOP found any difference in fund, charge and

Receipt from DHL (Curiour of the bank through which bank sends the

documents to importers bank)

Copy of LC

Types of Letter of Credit:

There are two types of letter of credit that are given below;

Revocable Letter of Credit


Irrevocable Letter of Credit

Revocable Letter of Credit

A revocable letter of credit may be revoked or modified for any reason,
at any time by the issuing bank without notification. It is rarely used in
international trade and not considered satisfactory for the exporters but has
an advantage over that of the importers and the issuing bank. It should be
indicated in LC that the credit is revocable. If there is no such indication the
credit will be deemed as irrevocable.

Irrevocable Letter Of Credit:


In this case it is not possible to revoke or amend a credit without the

agreement of the issuing bank, the confirming bank, and the beneficiary.
From an exporters point of view it is believed to be more beneficial. An
irrevocable letter of credit from the issuing bank insures the beneficiary that
if the required documents are presented and the terms and conditions are
complied with, payment will be made.


Cycle of Refinance

Bank of

Bank Of


Refinance Interest Rate:

Refinancing interested rate is 11% of which 10 % is of SBP and 1% is
for BOP.

Import Department:
Import department works under trade department which facilitate
importers. There are many types of payment for imports which are;
1. Advances
2. Contract
3. L/C

In advances the bank can send up to US$ 10,000 to the exporting bank.
The bank only pays for the imports of raw material or machinery in parts.
The bank does not finance importing of finished goods.
The procedure of advance is Customer firstly negotiating with the exporter.
Performa Invoice is received from exporter and if third party is involved the
third party writes indent to importer on his letter head after negotiating with
the exporter.
In case of advance the bank need the following documents

I Form
Performa Invoice

When the bank feel that all requirements are fulfill edit take rate from the
treasurer and transfer to NASTRO A/C.

Bank Of Punjab also issue L/C to facilitate international trade. The document
required for L/C opening are;

Performa Invoice
Insurance of goods


Parties Involved In Letter of Credit

There are normally five parties involved in L/C.


Buyers Bank

Sellers Bank


Insurance Company

Letter of Credit Opening Charges

When an LC is opened, the bank collect certain charges from
importer, these are;


Postage charges



General banking is divided into four sections;

a) Account Opening
b) Clearing
c) Remittances
d) Cash


1) Account Opening Department

Types of Account Opening Form
The types of account opening form are;

For single, sole proprietorship and joint personal.

For partnership, limited company, trust, clubs, etc.

Requirements for Single, Sole Proprietorship & Joint

Personal Account

CNIC Photocopy.

Introducer must have an account in the same branch.


NTN Certificate (for sole proprietorship)

World Check.

Letter head in case of sole proprietorship.

Basic Banking Account

This account is for salaried persons. Normally different companies,
schools, colleges keep their deposits in this account.


No Zakat Deduction.

No Service Charges.

BOP Debit Card.

ii) Current Account

Current is a nonprofit account flexible account with a great convenience
for individuals (in single or joints names), minors (to be operated by the






companies, firms, associations, educational institutions etc.

Salient Features

Minimum Rs. 10,000 required opening an account.

Service charges will be deducted.

BOP saving Account

BOP savings account provides an opportunity to small and medium
income group people, with an attractive return.

Salient Features
Minimum Rs. 5,000 required opening an account.
No minimum charges.
Zakat will be deducted.
Up to Rs. 100,000 expected profit 5% p.a.
BOP Debit and Credit Card.
Cheque account facility with no limit on a number of transactions.

Free cash deposit and withdrawal facilities through your bank


Profit and Loss Saving Account

PLS saving bank account is a simple, straight forward saving bank
account with a great convenience for individuals (in a single or joint names),
minors ( to be printed by the guardians), charitable institutions, provident
fund and other funds of benevolent nature local bodies, autonomous
corporations, limited companies, firms associations, educational institutions,
etc. the account may be opened with any amount; however accounts with
balance below Rs. 5,000 on any day shall be subjected as per their schedule
of charge in force.


Cheque account facility with no limit on a number of transactions.

Free cash deposit and withdrawal facilities through your bank


Free clearing facility to deposit cheques of other banks within the


Online funds transfer through cheques to any account across

Pakistan through your bank branch.

2) Clearing Department
Clearing is the second most important part of general banking. The
following functions come under this form of transaction;

Banker Cheques
Standing Instruction
Daily Fund Transferring
Types of Clearing
Realization and Un-Realization

Standing Instruction
Standing instructions are given by the customer to the banker. In this
cash is to be transferred to second partys account according to the
instruction given by the customer.

Daily Fund Transferring

In daily fund transferring the bank transfer the funds to customers main
account where he wants.

Orient has an account in different cities, like Karachi, Multan, Lahore,
Islamabad, and Faisalabad. The accounts manager of the company instructs
the bank that bank should transfer their fund to their main account in
Karachi. So BOP instruct their branches that they should transfer the funds of
Uniliver to companys main account in Karachi.

Types of Clearing

There are three types of clearing.

a) Normal Clearing
b) Special Clearing
c) Intercity Clearing

a) Normal Clearing
Normal clearing is further divided into two types.

Internal Cheque

External Cheque

Internal Cheques
Internal cheques are given by the customer of the same branch. The
clearing department check the status of the account if the status of
account is okay, then they credit the account of the second party and
debit the account of their customer.

External Cheques
External cheque comes from different bank to BOP but from the
same city. These cheques are delivered by NIFT. Clearing department
check the status of the account. If the status of the account is okay, then
they pass the transaction. If not they return the cheque to NIFT.

b) Special Clearing


NIFT deliver these cheques to the bank and instruct the bank to
transfer the amount to respected account. Bank is liable to pass the
transaction according to the instruction given by the customer.
Charges of special clearing are Rs. 500. These charges are charged by NIFT
and bank debit these charges from customer accounts.

c) Intercity Clearing
In intercity clearing, clearing between cities are done. For example in
Karachi, branch of Bank of Punjab exists, BOP branch Lahore sends the
cheque through NIFT to main branch which will further sends to BOP Karachi
branch for clearing and at the same process they send back the advice.

Outward Bills for Collection (OBC)

OBC send by one bank to another bank, where State Bank does not exists.

If a BOP customer receives a cheque by a party of HBL DG-Khan. BOP
Lahore sends OBC to HBL DG-Khan for clearing. When HBL DG-Khan
clear the cheque they send clearing notice to BOP Bank, then BOP
credit the account of customer.

vii) Inward Bills for Collection (IBC)

IBC is sent by one bank to another bank where State Bank does not exist.
If one bank sends OBC to other bank, for other bank OBC would be IBC.


If BOP Gujranwala receives a cheque of Askari Commercial Bank Multan.

They send the cheque to BOP-Multan, then Multan branch send the cheque in
normal clearing to Askari Commercial Bank Multan. If ACB clear the cheque,
then BOP send notice to Gujranwala branch for clearing through DAK, and
credit the account of customer.

National Institutional Facilitation Technologies (NIFT)








incorporated in September 1995 as joint venture between a consortium of six

banks and entrepreneurs from the private sector. All commercial banks and
their branches in major cities avail NIFTs services. As of June 2005, 43
commercial banks and their 3000 branches in 9 major cities utilize NIFTs
NIFT has setup elaborate data centers aimed to provide automated
services for document processing particularly in the payment activities.
Modern image based facilities have been established at Karachi, Lahore,
Islamabad, Peshawar, Rawalpindi, Hyderabad, Multan, Faisalabad and
Quetta. The services include cheques clearing, collection & delivery,
reconciliation, return (unpaid) cheques processing, same day clearing
(express - 2 hrs. clearing service), intercity clearing and inter branch
&interbank settlement. Services are provided at individual branch level to
over 3000 branches in nine major cities and 30 smaller cities.
NIFT also provides exclusive item processing services to financial
institutions and turnkey clearing preparation support to selected banks.

Negotiable Instruments
a) Draft on Demand
b) Pay Orders
c) ATM Cards

a) Draft on Demand
If one party does not trust the other party they request for Draft on
Demand instead of cheque. Draft on Demand minimizes the risk. D.D is the
bankers instrument. Bank issue the draft after verifying the status of
account of the party who is making this note in the favor of other party. After
issuing the draft now its banks responsibility to pay the cash to the party.

Draft used for outside the city.

Its validity is for six months.

b) Pay Order
If a party is not certain about other then the party requests for pay
order instead of cheque. Pay order minimize the risk. Pay order is the banks
instrument; bank issue the pay order after checking the status of account of
party who is making this note in the favor of other party.


After issuing the pay order now its bank responsibility to pay the cash to

Pay order used within the city.

Its validity for six month.

c) ATM Cards
BOP Card offers convenient and 24-Hours-a-day, 365 days a year access
to ATMs across the country. When traveling within Pakistan, use the Card at
BOP own network of ATMs and hundreds of ATMs displaying either the 1-link
or M-Net symbols.

You can also apply for a Debit Card services if you are having BOP Card, if
you are maintaining a BOP PKR Current or Savings account, Single or Joint
account with either signatory authorized to operate the account, a further
supplementary card can also be issued to the second account holder. All BOP
Card holders use debit card facility.

ATM Access Across All Over Pakistan

Now cash withdrawals and Balance Inquiry services are available by any
of the ATM in Pakistan.

Available Services at All ATMs

Cash Withdrawal

You can withdraw cash from your account(s) up to Rs. 25,000

per day in multiples of Rs. 500, and Rs. 1,000 currency notes.

Balance Enquiry
You can see the available balance in your account displayed
on the screen or obtain a printed advice.


Fast Cash
You can withdraw up to Rs. 1000, 3000, 5000, 7000 and
10,000 upto 50,000 cash from your account(s).

The ATM shall provide you with an instant mini-statement of
your ATM linked accounts (declared by you on the application)
listing 10 last transactions in the account(s).

Request for Cheque Book

Request for fresh cheque book may be made through the ATM.
The cheque book may be collected from your branch after 3 working
days against surrender of duly signed cheque book requisition slip.

Request for Statement of Account

Request for a detailed statement is processed at the push of a
button. Requested statement shall be dispatched by your branch at
your registered address within 4 working days.

Pin Change

You may change the Personal Identification Number (PIN) through the own
ATMs any number of times.

3) Cash Department
The following books are maintained in the cash department.

Scroll Book

Receiving Cashier Book

Token Book

Paying Cashier Book

Cash Balance Book

When cash is received in counter, it is entered in the Scroll book and cash
receiving cashier book. At the close of the day these are balanced with each
other. When cheque or any negotiable instrument is presented at counter for
payment, it is entered in the token book and token is issued to the customer.
The token and cashier make entry in the payment book and after that
payment is made to the payee. At the closing of the day, the token book and
paying cashier book is balanced.
Opening Balance + Receipt Payments = Closing Balance

This is very important department because cash is the most liquid asset and
mostly frauds are made in this department, therefore, extra care is taken in
this department and nobody is allowed to enter or leave the area freely.


4) Pension Disbursement Department

The Bank of Punjab is Pakistans leading institution which performs the
function of pension payments or disbursements to pensioners. The pension
disbursement department is responsible for making pension payments to
Government Pensioners. The person who wants to receive his/her pension
from BOP can open an account with any branch of BOP. This department
performs following functions:

Making Pension Payments

Opening of Account of Pensioner
Entry of amount paid to pensioner in Government Pensioners

Verifications of Signatures of Pensioners

ATM Network
BOP gives withdrawal facility anywhere within the boarder at any time
(24/7) service through its ATM machines. It is one of the banks whose ATM
machines are more than its branches. Currently BOP have 251 branches and
125 ATM machines spread in 74 cities of Pakistan.BOP provides Visa Debit
Card which allows customers to have unmatched transactional facility at
ATMs within the country or Outside with the additional advantages of making
purchase at Points of Sales machines anywhere in the world.

Internet Banking
You can access your account anywhere at any time through BOP Direct
Internet Banking. You can get your balance, can view your statement, can
transfer funds, can pay utilities and bills, or can view your history.

Phone Banking
You can access your account through BOP phone banking by giving your card
number and T-Pin 24/7. You can call Customer Service Call Center and can get
instant access to all the information that you need.


In the branch, departments do their jobs in accordance with the bank

regulations and policies depending on their size and business volume. Given
below are the departments I worked in:

Clearing Department

Remittance Department

Deposits Department

Credit Department

Account Opening Department

Government Department

Six week schedule of internship at main branch BOP Trust Plaza

Gujranwala (0006) is given at the next page which describes the day to day
record of my activities and work accomplishments.



With the help of deposit slips, customers can deposit any amount of
cash, cheque, demand deposit, pay order etc. into their account. I was
instructed specifically to take into account the following information while
filling deposit slip:
The correct date indicating when the amount is deposited. If the
amount is deposited today then date should be the same day.
Account Number given to the individually to account holders by the

The title of account which may be the account holders name or the
name of his firm.
Amount given in figures and words on the slip should match each
Currency should be mentioned whether euro, PKR, US$.
Any instrument number (cheque #, demand deposit #, pay order #
etc.) should be mentioned.
Signature by depositor at the left bottom of the slip.
After filling deposit slip I used to give receipt to the specific account holder
and voucher was then placed in pink basket for bank further proceeding.
There were basically two types of deposit slip:
Current account deposit slip was available for only current account
holders only. It was available in blue color. Current account holders
could use this slip for depositing their amount into account.
PLS Saving Deposit Slip was available in green color for all other
account holders either it is saving, term deposit etc.

With the help of cheque one can withdraw any amount of cash. It was the
clear instruction from my supervisor Mr. Nouman that there should be no
error, cutting or overwriting whilst writing a cheque. That is why I paid full
attention while filling cheques because a little mistake of mine in any word
and spell can create problems resulting in customer dissatisfaction.
The information to be provided when writing cheques was
Name of the Bearer.

Date when it should be withdrawn.

Amount in Words and Figure.
Three signatures or thumb impressions.
It is human nature that mistakes are made despite of full alertness or
attention. Thus if any mistake in cheque occurred then it was mitigated by
getting signature by account holder. There is a permission of almost 3
mistakes otherwise cheque will be rejected.

With the help of online payment, one can send its amount to any branch of
BOP which is online within few minutes.
Features of Online Payment
Money is only transferred from one branch to another branch of the
same bank.
Payer and Payee bank is the same but branches are different.
It is an unconditional form of payment.
Procedure for Online Payment
For online payment, a form was filled by the customer providing the following
Name and Account number of Receiver/ Beneficiary.
Amount which was transferred.
Place and Branch code where amount is payable.
The mode in which money is to be paid i.e. cash or through cheque.
Name and Account of the individual sending the money.

Online Payment can be sent by account holder and non-account holder both.
For non-account holder a copy of CNIC is required.
Online charges are not same for both account holder and non-account holder.

Demand draft is a tool through which individual can make payment
from one bank account to another. In this case, the drawer (the person
writing the draft) and drawee (bank giving money) bank is the same but
branches are different. Demand drafts are considered as a relatively secure
method for transferring funds or money. The major difference between
demand drafts and normal cheques are that demand drafts do not require a
signature in order to be cashed also known as Remotely Created Cheques.
For online payment, customer was required to fill voucher providing the
following information:
Name of the individual (Receiver/ Beneficiary).
Account number of Receiver (Optional).
Amount of cash which is to be transferred.
Specify the mode in which money is to be paid i.e. cash or through
Name and Account of the individual sending the money.
Place (branch name or code) where amount would be payable.
Charges were paid by customer other than their sending amount as
PKR 50 was charged up to the amount of PKR 50,000.
PKR 100 was charged up to the amount of PKR 100,000.
If the amount exceeded PKR 100,000 then 0.50% commission of

amount was charged by the bank.


This was another mode for funds transfer. For pay order, customer was
required to fill voucher providing the following information:

Name and Account number of the individual (Receiver/ Beneficiary).

The exact amount to be payable.
The mode in which money is to be paid i.e. cash or through cheque.
Name and Account of payer.

Pay Order charges for non-account holder are not same as Online
Charges, these are:

Commission charged for the pay order was 406/- and the Federal
Excise Duty was PKR 32/- (FED on each 100RS is 16)

Pay Order for branch account holder were as follow:


Commission charged for the pay order was 174/- and the Federal
Excise Duty was PKR 16/-

Only after submission of amount including charges by account or nonaccount holder was Pay Order issued.


A cheque book will not be issued till the customer deposits the amount
into its account. When he deposits his amount then a cheque book will be


issued where account number and title is printed. Mr. Adil while giving
cheque book to customer recorded its entry on Cheque Book Register.
A Cheque Book can be issued by consisting of 25, 50 and 100 Leaves
and rupees 3 are charged as per leave from customer.

Loss of cheque book

If a customer, in a case, lost his/her cheque book then a requisition slip

was filled first. Signature of account holder was verified and the lost cheque
books serial number was immediately cancelled and a new cheque book was
to be issued.
When cheque book is lost then customer was required to inform the
concerned officers by writing an application. Otherwise it can create
problems for the account holder.

The electronic system eliminates the use of paper bills, checks,
and mail, and it reduces the time and cost incurred presenting bills and
collecting payments. Many of the clearing houses belong to the Automated
Clearing House network to provide an electronic alternative to the traditional
paper-based check clearing systems. Clearing is the process of transmitting
and reconciling payment or transfer instructions, confirming payment orders,
or the security transfer instructions prior to settlement. Settlement is the


discharge of obligations with respect to the transfer of funds or securities

between two or more parties.

Following instruments were presented at the clearing department:


Demand drafts
Pay orders




Intercity Clearance:
When a cheque came for clearance that was outside from the range that
BOP set, it would be under the intercity clearing. This type of clearing had
some charges.

Local Clearance:

When a cheque came for clearance that was inside the range, it would be
under the local clearing. This type of clearing was free from all charges.

OBC (Outward bank collection)

In OBC cheques were drawn on other banks that were outside the

range. For this purpose, BOP took NIFT services and made CCs.

NIFT Services
NIFT (National Institutional Facilitation Technologies Private Limited)

was incorporated in September 1995 to provide services at individual branch

level to over 3000 branches in 9 major citiesand 30 smaller cities. These
services include cheques clearing, collection & delivery, reconciliation,
return (unpaid) cheques processing, same day clearing.

Recording in the Register

When a customer provided a cheque, which was drawn on other Bank

or Branch of different cities, it was recorded on a register that was called

Bills Register. After recording, bank sent that cheque for intercity

I used to place three different stamps on cheque. Two stamps were

posted at the front of cheque that was crossing & clearance and one on the
back that was endorsement.
i. Crossing Stamp (Indicated that cheque is under the possession of Bank)ii.
Clearing Stamp (Indicated that cheque is presented for clearance and it has
complete in all aspects and fulfill all requirements)

iii. Endorsement Stamp (Indicated that Payee's account will be credited on

realization for Bank).

Bundle Cover
Then cheques were attached with a Bundle Cover page in which total

amount & instrument number are mentioned and sent to the NIFT of that
city. NIFT directly presented cheques to the concerning bank/ branch.

Delivery Report
When cheques were presented to the NIFT then next day it sent a

Delivery Report which showed that the cheque had been delivered to the
After the Clearance, all cheques would be delivered to the main branch
of BOP. Main Branch will then send an advice to the Bank Square. On the
basis of that advice all accounts are credited.

CC (cheques for clearance)

Where the NIFT service was not available CC would be sent for clearance
of cheque.

Record in the Register

For the Clearance of Cheques all cheques were recorded on Bills register
and CC number was allotted to those cheques. If these cheques were for any
other branch of BOP then they were directly sent to the branch of that city
and if cheques were for any other bank's branch then they were sent to BOP
Main Branch at that city where the bank sent these cheques for local


IBC (Inward bank collection)

In IBC cheques were drawn on Bank. Branch of that city confirmed
about that Cheque through fax which were drawn on BOP and follows the
reverse procedure as to outward bank collection
Following are the reasons given below due to which cheques could be
rejected for clearance purposes:

Cheques can be returned due to different reasons:

Payment stopped by drawer.
Discrepancy of mount in words and figures.
Cheque postdated/ out of date.
If there was no clearing banks endorsement.
If there was no clearing stamp.
If crossing stamp was not placed.
Advice not received by NIFT.
Account closed.
Insufficient fund.
Not drawn on that branch.
No title of account.
Different or incomplete or absence of drawers signature.
Cheque was incomplete etc.



Account opening

My next activity for learning was the opening of accounts. The

procedure for opening of account was as follow:
A person who wanted to open an account in BOP was required to fill
the account opening form and there should be no cutting and overwriting.
Account could be opened at the name of customer or in the name of her/his
business. It could be opened in any type of accounts like: Current, Saving,
Basic bank account etc. and in any currency of Pak Rupee or a Foreign.
When form was filled then signatures/ thumb impressions were taken from
customers at minimum three places. Two signatures were done at the
specimen signature card and at least one signed on the account opening
form. Signatures done by the customer were required to be the same as on
the ID Card. If a customer wanted to do a different signature, it must require
getting permission from Manager first.
Customer also came with anothers individual reference who was
already the account holder of bank called introducer. The introducer verified
the integrity, reliability and honesty of customer. If the introducer did not
sign on form, customer would not be able to open his/her account in BOP.
Assigning of Account Number
At this stage, account number was assigned to the customer.
Closing of account
There could be different reasons for closing of account by Bank:

If the account holder had no balance in its account and did not even try
to deposit any amount.
If account holder had involved in any unfair means.
Account could also be closed by the will of account holder itself

8) :Foreign Remittance Department:

There are numbers of companies linked with Bank of Punjab. People who
lived in foreign countries make payment to their relatives lived in Pakistan.
These are following companies are linked with BOP for making transaction
between two parties who lived in outside of Pakistan and inside of Pakistan.

Express Money
Weston Union
Aftaab Currency Exchange
Al Insari
Dex International
Lulu International
Hafiz Brothers
UAE Exchange


These companies have specific amount of numbers according to the

company for making the transaction.

Name Of Companies


Of Digits
Express Money
Weston Union
Aftaab Currency Exchange
Al Insari
Dex International
Lulu International
Hafiz Brothers
UAE Exchange


A person who wanted to get money from these companies which are sent by
their relatives is come to BOP and go to relative counter. Tells the company
name and give the number of the transaction which he already know by
his/her relative. The authorized member checks the details by entering the
number in computerized system which is linked by the company.
The name of the person who is sending the money is already know who
come for receiving the money is asked by the authorized person. If its match
and the amount is matched then the payment order print is made with the
copy of Identity Card of the person who receiving the money and then that
person go to the cash counter for getting the payment.



I chose to do an Internship to gain valuable work experience in the field
of my major (finance). Six week internship at the BOP main branch
Gujranwala Trust Plaza help me polished my oral and written communication
skills, customer service skills, teamwork skills, organizational skills and
various computer skills helpful in developing cash scrolls, government scroll,
intercity clearance lists, account opening etc. . Diplomacy and persuasion are
the other skills that I owe to my internship because it is really important to
get everyone on board with you when you have some dream idea or project
and you wish to realize your dream into reality. I gained confidence in
speaking my opinions and mind of thought with other people. I learned how
to manage my time effectively and out of all the general skills being an
active listener was the most important. The last professional skill that the
manager advises me was always to be open-minded, you may know what
you want to do with your degree, but the position may not be available in the
area. Develop other skills than those specific to what you want to do with
your degree.
Here I would particularly want to mention appreciate the whole branch
staff (who has substantial experience within the banking sector) who allowed
me to understand how the things I have learned about finance, marketing
and money and banking in classes can actually be implemented on a day-today basis in the real world. I feel that I have a better understanding of
banking sector after observing and practicing the bank routine activities all
along the six week duration. I cannot describe how grateful I am to have the
experience of doing an Internship directly related to my subject.


I fulfilled the responsibilities of doing remittance, account opening,

pension disbursements, loan sanctioning, clearance, checking the a/c
balances with the help and guidance of respective supervisors.
I feel like my Internship most benefited my career goals by giving me
experience in what a job in practical would really be like. Also, I think this
experience prepared me to better obtain a job in my career field and to
succeed in that career. Internship gave me an opportunity to apply
fundamentals learned in the classroom to real-world banking issues and thus
gave me an edge against competition when entering into the work force. The
Internship aided my career goals in that it helped raise my energy,
enthusiasm and intellectual interest for situations that are often in need of a
fresh perspective.
The experience I gained helps me remove hesitation and boost my
confidence to continually pursue for the excellence because overall the









convenience, flexibility and real world experience prior to graduation. It will

greatly influence my interaction with people on a professional level and in a
way that I would never have the chance to do in the classroom. Last but not
least it would look great on my resume.
Different financial, management, marketing and money & banking
concepts that I learned in the class greatly put me at ease from the start of
the internship because I was already familiar with most of the activities and
procedures performed there. I believe that students should do an Internship
to put the skills and information that they learned in their classes to practical


use as it aids us in learning new skills, developing our professional interests,

expanding our personal network and gaining valuable work experience.

The Bank Of Punjab plays a key role in the strategic national
development. The bank has historically been the financial arm of the
government and has enjoyed the blessings of state support in the form of
huge public sector funds and deposits.
In contrast to other banks populating the FSI sector, BOP is mandated
to uphold public interest. It is critical too as all other banks and NBF in public
sector have been closed down or merged with BOP.
The current management of Bank of Punjab was hired purely for their
international experience, business orientation to turn around a purely public
institution into a sustainable and commercially viable bank serving public
interest along the lines of a large modern commercial bank.
The BOP has effective budgeting system in place. Annual budget of the
bank is approved by the Board and monthly comparisons of actual results
with the budget are prepared and reviewed by the senior management.
The Bank of Punjab has a comprehensive framework of written policies
and procedures on all major areas of operations such as Credit, Treasury
Operations, Finance, Internal audit and Compliance approved by the Board.


The Bank of Punjab provides sustainable financing for growth of

industries of critical national importance such as energy, education,
healthcare, transport, shipping, Research & development.

2.2 )General Observations about the Banking sector

Pakistans banking sector reforms have transformed the sector into an
efficient, sound and strong banking system. They have resulted in a more
efficient and competitive financial system. In particular, the predominantly
state-owned banking system has been transformed into one that is
predominantly under the control of the private sector. The legislative
framework and the State Bank of Pakistans supervisory capacity have been
improved substantially. As a result, the financial sector is sounder and
exhibits an increased resilience to shocks.
80 percent of the banking assets are held by the private sector banks and
the privatization of nationalized commercial banks has brought about a
culture of professionalism and service orientation in place of bureaucracy
and apathy.
The banks that were losing money due to inefficiencies, waste and limited
product range have become highly profitable business. These profits are,
however, being used to strengthen the capital base of the banks rather than
paying out to the shareholders.
The quality of new assets has improved as stringent measures are taken
to appraise new loans, and assure the underlying securities. Online Credit

Information Bureau reports provide updated information to the banks about

the credit history and track record of the borrowers. Loan approvals on
political considerations have become faded.
The human resources base of the banks has been substantially upgraded
by the adoption of the principles of merit and performance throughout the
industry. Recruitment is done through a highly competitive process and
promotions and compensation are linked to training, skills and high
performance. The banks now routinely employ MBAs, M.Coms, Chartered
Accountants, IT graduates, economists and other highly educated persons
rather than Clerical and Non Clerical Workers. The banking industry has
become the preferred choice of profession among the young graduates.
Competition among the banks has forced them to move away from the
traditional limited product range of credit to the government and the public
sector enterprises, trade financing, big name corporate loans, and credit to
multinationals to an ever-expanding menu of products and services. The
borrower base of the banks has expanded four fold in the last six years as
the banks have diversified into agriculture, SMEs, Consumers financing,
mortgages, etc. The middle class that could not afford to buy cars or
apartments as they did not have the financial strength for cash purchases
are the biggest beneficiaries of these new products and services.

2.3 ) SWOT Analysis


Network in foreign countries:


BOP starts opening branches in foreign countries and it has opportunities to

develop them very strongly, like it open a branch in Kabul, which proves to
be very beneficial.

Gain economies of scale:

Being the bank with largest branch network and capital structure in
Pakistan.BOP can avail economies/of scale by increasing monopolistic hold.

Conduct large workshops for Training and Development:

Due to its strong financial position the bank can conduct workshops for
the development of its staff effectively and can bear all the costs easily.

Support of SBP:

The SBP is providing complete Support to the BOP by its different policies
and other supporting activities.

Better Competitive Position:

Having monopolistic hold on the economy the BOP gain competitive edge
over other banks, the bank maintain better financial as well as physical and
other non-physical advantages.

Market Recognition

For the second consecutive year, BOP was recognized as the best bank in
Pakistan by the prestigious periodical, " The Banker" UK (a subsidiary of
Financial Times Group).


It is an external situation, which an organization can benefit from. BOP
can grab the following opportunities:
Growing policies of the Government on business and commerce sector
provides BOP an opportunity to efficiently meet the business people's
requirements of instant cash financing facilities.
Customer's feedback on different products and services has really
improved the bank's performance and encouraged the atmosphere for
other future policies.
Due to efficient and experienced management group, BOP can improve
and expand its foreign operations successfully.

Increasing need and potential of leasing in Pakistan provides BOP an

opportunity to utilize its skills and efficiencies in leasing business as welt
For general public interest concern there are no service standards
benchmarks and guidelines available in BOP. There is only re-crafting of old
documents only. The Bank of Punjab+
is incurring large expenses in running those branches, which are not
producing any income and up gradation of human resource is very slow.
It is an external situation posed to harm organization. BOP worries about the
A tremendous number of foreign banks are opening their branches in
the country.
Also the increasing operations of private banks pose threat to BOP.

Highly specialized and attractive services offered by foreign banks

to/their customers.
Lack of consistency in Government's policies regarding business and
economic sector.
Growing global technological advancement.
Strict regulations of the Government over credit facilities to the
customers as well as to meet the prudential regulations.
Loss of confidence of overseas customers due to freezing of accounts.


The management should develop elaborate strategic plans for

capitalizing the available opportunities.

One area where the bank has done some work is the improvement in
customer services. But to get the desired results, the bank should
develop long-term objectives and prepare appropriate courses in order

to achieve them.
The bank should maintain principle of professional management and
adhere to the sound and sophisticated banking rules and regulations to
build confidence of the people in the institution.

Regulatory authority should pay heed related to the disciplinary

A committee of senior qualified expert staff should be physically
present at bank to receive complains by customers and catch the

guilty person red handed.

Complain box should be such that no one can bring the compliant

papers out of box.

Security cameras should be placed to provide the customers with

sense of security.
A check and balance should be imposed on all employees violating
rules and regulations and a large amount of fine should be charge to

the guilty employees.

Training session should be held at different intervals in a financial year
to make employees more competent in order to get a competitive

Separate information desk must be established in bank to facilitate the

customers and making prompt reply to the queries of the customers.

Favoritism and nepotism should be strictly dealt. Any employee
whether of lower rank or upper rank found involved in favoritism and

nepotism should be removed on the spot.

A separate investigation team should be formed to investigate the

market situations and keep the working be up to date.

New qualified and competent employee must be hired to fill the gap.

1., accessed 5sep




3., accessed 5 Jan 2013

4., accessed 10Sep 2013
5. Face to face interviews with:

Branch manager Mr. Rao Safdar Khan19 Aug 2013 around 12 o clock
Management training officer Mr. Dilshaad & Mr Baryaar, 28,29 Aug 2013
Customer Facilitation Officer Ms. Wajiha, 9Sep 2013 3:00am
Cash Officer Mr. Fahad Mughal 13 Sep 2013 11:00am