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M.B.A (Finance 3.5 years)

Bank of Punjab

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Internship report on The Bank of Punjab submitted to the

department of the Assistant Director of Academic for the
requirement for the degree of Master of Business Administration
August 22, 2013

Bank of Punjab

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I would like to dedicate my this effort, which are m y first step
towards my practical career, to my Parents, all Teachers, all
Friends, all beloved peoples and who contribute to expand my
knowledge, to understand this world for recognizing Allah


Bank of Punjab

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First of all I like to express my thanks and gratitude to Allah Almighty, He give me strength
to complete this task of internship report.
My 6 weeks internship o the Bank of Punjab management system has become the latest topic
for me and I completely accomplish my task individually with the help of my father, So I
wish to give credit to all my colleagues, supervisor and contributors to enhance my
experience bout the practical training in the Bank of Punjab.

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Chapter one:
1.0 Background of study-------------------------------------------------------------8
1.1 Purpose-----------------------------------------------------------------------------9
1.2 Scope-----------------------------------------------------------------------------10
1.3 Objectives-------------------------------------------------------------------------10
1.4 Methodology----------------------------------------------------------------------11
1.5 Organization----------------------------------------------------------------------10
1.6 Summary---------------------------------------------------------------------------11

Chapter two:
2.1 Overall respective sector in Pakistan--------------------------------------------11
2.2 Role of the organization in Pakistan--------------------------------------------11
2.3 Overall Organization and function of the org in Pakistan---------------12-17
2.4 Organization office in which you are working--------------------------------17
2.5 Summary----------------------------------------------------------------------17

Chapter Three: Organization

3.1 Brief history of the organization---------------------------------------------18-21
3.1.2 Relationship of head office to the branch offices-------------------------21
3.1.3 Number of departments--------------------------------------------------21
3.2 Current staff----------------------------------------------------------------------30
3.2.1 Current staff of the branch according to qualification and experience31
3.2.2 Training received by no. of people or no. of employee--------------------31

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3.2.3 Workload (it is based on no. of hours worked) -----------------------------32
3.2.4 Salary structure------------------------------------------------------------32
3.2.5 Promotion system---------------------------------------------------------32
3.2.6 Incentives and motivation-------------------------------------------------33
3.3 Critical analysis of the branch----------------------------------------------33
3.3.1 Communication system----------------------------------------------------34
3.3.2 Hiring system-----------------------------------------------------------------35
3.3.3 Morale of staff-----------------------------------------------------------------35
3.3.4 Physical facilities-----------------------------------------------------------------35
3.4 Performance---------------------------------------------------------------------36
3.5 Summary------------------------------------------------------------------------------37

Chapter Four:
4.1 Policies--------------------------------------------------------------------38
4.2 Strategies----------------------------------------------------------------------39
4.3 Successes------------------------------------------------------------------------40
4.4 Summary------------------------------------------------------------------------41

Chapter Five:
5.1 SWOT---------------------------------------------------------------------------41
5.2 PEST analysis---------------------------------------------------------------------44
5.3 Summary--------------------------------------------------------------------------45

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Chapter # 1
This is the first chapter of my internship report. This chapter include background of
my study, Scope, Purpose of internship, Objective, methodology which I used to
collect information, organization in which I done our internship is BOP (The Bank of
Punjab Established in Pakistan on 15 Nov 1989, in pursuance of The Bank of Punjab
Act 1989and was given the status of scheduled in 1994), and the last summary of this
chapter. The background of my study include inspirational factors due to which I
selected BOP, in scope the learning in functional departments, purpose is to meet the
requirements of degree, organization tells about the history and methodology shows
the methods of data collection for report. I explained all these elements in detail. At
the end the summary of this chapter is given.


Back Ground of study:

The economic growth of a country, among many other factors, depends mainly on the
strength of the financial institution operating in a country. The banking sector is one
of the example of financial institution which can play a very vital role in development
of the overall economy of a country.
Banking sector has now become a very challenging field with the advent of modern
technology and increased competition.
For internship my selected bank was THE BANK OF PUNJAB in short known as
BOP in banking sector.
Established in Pakistan on 15 Nov 1989, in pursuance of The Bank of Punjab Act
1989 and was given the status of scheduled bank in 1994.
The Bank of Punjab is working as a commercial bank with its network of 2/2 (2007)
branches at all major business centers in the country and strength of employees are
2373 employees.

Branches of this bank are increasing all over the country at a gradual
speed, which shoes that customers are placing confidence and
satisfaction in the services of BOP.
In fact, it has made wonderful advancement in a very short time as
compared to other bands in Pakistan.
From the financial point of view, as I am student of MBA, financial
position of bank is very strong. Market value of its shares is showing
increasing trend, price earning ration and other ratios are showing
favorable position of the bank so I decided to choose BOP for my
important and compulsory internship in final semester.

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One of the major aims of internship to make student under all those
concepts that we learn in university are almost same to the practical
working in any organization.
Interaction of students with the working environment of organization
and make student to a good observer, communicator, build confidence
and face different sort of challenges but more focused on the bases of
PR more chances of progress no matter which ever field you chose for
you career.

Scope of Work:
Banking sector owes a pivotal importance in the economy of any
country through its vibrant functions. This is the deep-seated motivator
that geared up me to join any bank for internship. Moreover, the
practice and familiarity learned during this tenure would also attest
very helpful and alleviating in the awaiting proficient life. There are
different department in bank like
Cash department
Credit department
Remittance department
Foreign exchange department

In practice I cannot covered all areas of banking system but cover

Account opening
Account closing


Internship provides us practical learning along with our bookish
knowledge that we got from the university.
Internship polishes our skills.
Concepts become clearer and we will feel the difference between
our past learning and this practical work.
Increase in the confidence level and our mental approach become
Dynamic thinking becomes part of our daily life during this period
of internship period and that reflect changes in our life as well.
Think out of the box more we have question answerer section our
mental approach become versatile.


Methodology of the student:

The data collected for the first time is called primary data which was through

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The senior and the experienced staff at the branch level were
interviewed to know their views about the different problems faced
by them in their routine duties.
Begin an internee, different methods, procedures, rules and
regulations used by the staff members while working their routine
jobs were observed.

1.4.2 Secondary Data:

The data, which has gone through mathematical and statistical techniques after its
collection, is called secondary data. The main sources of secondary data are different
publications of BOP. These include annual repots, manuals, newsletters, website of
BOP and brochures etc.

The Bank of Punjab Established in Pakistan on 15 Now 1989, in pursuance of The
Bank of Punjab A ct 1989 and was given the status of scheduled banks in 1994.The
Bank of Punjab is working as a scheduled commercial bank with its network of 282
(2007) branches at all major business centers in the country and strength of employees
are 2373 employees.


Branches of this bank are increasing all over the country at a gradual speed,
which shows that customers are placing confidence and satisfaction in the
services of BOP.
In fact, it has made wonderful advancement in a very short time as compared
to other banks in Pakistan.
From the financial point of view, as I am student of MBA, financial position of
bank is very strong Market value of its shares is showing increasing trend,
price earning ratio and other ratios are showing favorable position of the bank
so I decided to choose BOP for my important and compulsory internship in the


The summary of this chapter included all the basics details of The Bank of Punjab that
are discussed in the chapter. This is the end of chapter one which contained the
introduction of my internship report in the Bank of Punjab the Kutachary Road
Branch, Gujart has given. In this chapter it is described the inspirational factors due to
which I selected bank of Punjab. Scope of my study are also given. The brief history
of organization as well as the purpose of internship is also mentioned in this chapter.
The summary of this chapter included all the basics of Bank of Punjab that are
discussed in the chapter.
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Chapter # 2
This is the second chapter of the report. In this chapter also different aspects of my study are
mentioned in detail. In this chapter the focus of my study is on overall respective sector in
Pakistan, role of the organization that lays a vital role in the economy of Pakistan,
organization overall functions that are performed by organization. And the organization office
in which I has done my intership. I explained all these elements in detail. At the end the
summary of this chapter is given.

2.1 Overall Respective sector in Pakistan:

Pakistan is having a very developed banking system in south Asia. Pakistans banking sector
is developing at a very fast pace and banking sectors contribution is increasing toward the
development of economy. The Bank of Punjab is also one of the most popular banks in
Pakistan In fact, it has made wonderful advancement in a very short tiem as compared to
other banks in Pakistan.

2.2 Role of the Organization:

Perform proactive and pivotal role in economic progress and prosperity through reengineered
operations and innovative financial products.

To exceed the expectation of our stakeholders by leveraging our relationship
with the Govt. of Punjab and delivering a complete range of professional
solutions with a focus on program driven products and services in the
agriculture and middle tier through a motivated team.

Market Positioning:

The Bank of Punjab is increasing all over the country at a gradual speed,
which shoes that customers are placing confidence and satisfaction in the
services of BOP. In fact, it has made wonderful advancement in a very short
time as compared to other banks in Pakistan.
Market value of its shares is showing increasing trend, price earnings ratio and
other ratio are showing favorable position of the bank.

2.3 Overall organization and functions of organization in

2.3.1 Consumer products
1. Saving account
2. Current of demand accounts
3. Fixed account

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Saving account (PLS)

These types of accounts are designed to encourage the saving habit of the customer and lead
to long team or invest relationship. Bank saving account in the nature of deposit accounts and
are not normally available for drawings. The cash reserve ratio is typically low then the
current account because the withdrawals against eh account are very low.


These are those deposits, which can be drawn by the depositor at any time by representing a
cheque to the bank. People deposit their money in this account they gave a ready command
on their account in developed countries of world, a very significant part of money is kept
under current ot demand account. The operating cost for the handling of this type of account
is very regular.


Fixed accounts those which are deposited for a fixed period of time and repayable after the
expiry of stipulated time to the customer. Those people who have surplus funds and what to
have investment deposit the amount in the fixed account.
The rate of this type of deposits is higher the saving bank accounts. The cash reserve against
this deposit are very low because there no fear of with draw of a month before the stipulated
of time.


1. Agriculture schemes
2. Business promotion finance schemes
Agriculture Schemes
There are many agriculture promotion schemes provided by BOP.

Kissan dost agriculture finance scheme

Kissan dost tractor finance support scheme
Kissan dost mechanization support scheme
Kissan dost farm transport scheme

Such type of schemes provides framers a real plate from to accelerate. Some facilities given
by kissan dost.

Agricultural finance scheme are:

Bank of Punjab

Provision of financial facility for purchase of inputs (seed,
fertilizer, pesticides, fungicides etc)
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Maximum of Rs.500000 according to per acre limit of the crop.
Charge on agriculture land through agriculture pass book.
The borrower will have to arrange life assurance under the
Banks charges.
9% mark-up per annum.

Business Promotion Finance Schemes

BOP car loan

BOP house loan
BOP assaish loan
BOP house loan for federal Govt


BOP car loan is a demand financing facility to purchase brand new locally
manufactured/assembled cars for personal use. All must have the holding of NIC.

BOP Aasaish loan

BOP asaish loan is demand finance facility for purchase of consumer durable goods like tv,
refrigerators, mobile, microwave oven, fans, audio/video system etc with no down payment,
in addition with the free home delivery.

These are the services of provided by the BOP.

Bank of Punjab

ATM facility
Letter of credit
Pay order
On-line banking
Debit card
Consumer financing
Agriculture financing
Corporate financing
Commission financing
Commission free remittance
Demand draft
Collection of utility
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Lockers facility

Automated teller machine(ATM)

Through the ATMs customers have access to the various service such as withdrawal, balance
enquiry and mini statement? Cash withdrawal limit is up to Rs.20,000 per day. Annual
charges of ATM is Rs.250/- per card. It is one of the utility seavices that BOP provides to
their customers for keeping jeweler, important documents and other valuable.

Demand Drafts
BOP provides safe, speedy and reliable way to transfer money at very reasonable
rates. Any person whether an account holder of the bank or not can purchase a
Demand draft from a bank branch.

Letters of Credit
BOP is offering its business customers the widest of option in area of money transfer.
BOPs letter of credit is the best way to do the business transaction.

Pay Order
BOP provides transfer of money using different facilities. Its pay order is a secure and
easy way to move the money from one place to another. The charges for this service are
extremely competitive.

Mail Transfer
Moves money safely and quickly from BOP mail transfer service. The rates for this
service is quiet impressive as compare to the market.

Short Tern Investment

BOP offers excellent rates of profit on all its short tern investment accounts. The packages
are starting from 3 months. BOPs rates of profit are extremely attractive, along with the
security and service only BOP can provide.

Agricultural Finance
It help farmers utilize funds efficiently to further develop and achieve better production.

2.3.4 FUNCTIONS OF THE Account/Finance

Functions of finance department
The management of BOP comprises of two ie chairmans secretariat & president secretariat.
Chairmans secretariat deals with finance division. Mr. Nadeem Amir is general manger of

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finance division of mentioned secretariat. The financial analyst related to BOP mattes of
chairmans secretariat is Mr. Masroor Zaigham

Use of electronic data in decision making

Electronic data gives exact values and figures which top level management required. Because
of electronic data they came across to know those minute things which impact a lot on final
place. Electronic data make management able to take decision at any point of time.

Sources of funds trend

The major sources of funds are:

Public Source
As the largest regional bank Pakistan according to asset base
with specialized in agriculture has a large deposits 80% from
the rural areas of the Punjab.
Money Market
Figurative expression for the informal network of dealers and
investors over which short-term debt securities are purchased
and sold.

Corporate treasuries and Government Institutions

Corporate sector one of the major sources of funds in all types of banking. All major
organization, financial institution and government & private organization are the major
sources of the funds e.g WAPDA.

Allocation of Funds trend

BOPs funds are allocated to the following departments. The banks major focus is no short
term financing. Major allocation of funds is on these divisions.

Long Term Financing

Long term financing includes tenure more than one year.
Short term financing
Short term financing includes tenure more than one year.
From the above it is further sub distributed to
1. Agriculture financing
2. Consumer financing
3. Corporate financing

Agriculture financing
The bank provides adequate and timely financial assistance to the farmers to improve
production potential of agriculture sector. Insurance of leased assets, animal, crops and life
assurance of borrowers are all source of money for the bank.

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The bank has a centralized database that is web-enable. All the services that the bank has
permitted on the internet are displayed in menu.

Utility bills
The bank also makes possible the payment of electricity, gas and telephone bills for its
customers charging some commission on each payment.

Commission charged on lockers provided by bank for customers, is also a source of inflow
for the bank.

Consumer financing
Personal financing, mortgage finance, business finance, smart cash, auto financing and
travelers cheques are all source for the bank.

Agriculture financing
The bank provides adequate and timely financial assistance to the farmers to improve
production potential of agriculture sector.

2.4 Organization Office which you are working

For internship my selected bank was THE BANK OF PUNJAB in short as BOP and branch
location is G.T road Sarai Alamgir and branch code is 0189.

2.5 Summary
The summary of this chapter include the details regarding functioning process of
organization. Chapter two is the all about how the organization is working. In this chapter it
is described that how organization plays an important role in the national economy by
providing facilities to the valuable customers. Details about overall respective sector in
Pakistan are also mentioned.

Chapter # 3
This is the third chapter of my internship report This chapter is related to organization and its
analysis. This chapter the focus of my study is on the history and nature of organization and
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also its relevant information, the data is related to that branch in which I have done work.
There are four departments cash department, remittance, foreign exchange and credit
department. This chapter includes history of organization, relationship of head office to
branch office, number of departments offices, current staff their qualification, training.
Workload, salary structure, promotion, communication and hiring system, morale of staff,
critical analysis, physical facilities, performance I discussed all these elements in detail. At
the end the summary of this chapter is given.

3.1 Brief History of Organization

Pakistan came into being on 14th August, 1947; sufficient banking services were available in
the areas foaming Pakistan. Out of the total branches of the nearly 3,500 in the undivided
India, as many as about 1,500 branches were existing in these areas.
It was agreed between the two countries that reserve bank of India shall continue to function
in the Pakistan territory until 30th September 1948 and that India notes would continue to be
legal tender at Pakistan until 30th September 1948. Unfortunately, relationship between the
two countries became most strained immediately after independence; banking was mostly in
the lands of Hindus who immediately started transferring their offices and assets into India.
As a result most of the banks Pakistan were closed down and even those which were open
were not doing any effective business.
The number of banking office in Pakistan came down to about 200 on 30th June 1948.
Branches of some European banks were also functioning in a limited manner, financing in
export of crops and their was limited to about 20.
It was only Habib bank, which transferred its office from Bombay to Karachi Austral.

Nationalization of Banks
The principle of nationalization of banks is to stream line the operation of commercial banks
in such away that it may be conductive to the development activities in process in the
Since the commercial bank were owned controlled by big business groups of the century it
was feared that these banks would not maintain uniformity in their operational and would be
instrumental to inflationary pressure. However, the considerations behind nationalization are:

To form uniformity in the policy of the commercial banks so they may serve
the best national interest.
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To make the operation of commercial banks highly sensitive and responsive
to the policy of the government relation to financial matters.
To make the credit policy of the commercial banks more purpose full and
effective in the development of economic sectors of the country. It acts as an
agent of the state Bank of Pakistan.
To make the best use of the funds available at the disposal of these banks for
the economic development of the country.
To eliminate unhealthy and uneconomic competition among commercial
To development strong money banks market in the country so that the value
of currency may be maintained at stable level both in national facilities to
exporter and agriculturists which have not been satisfactory in the past years.

History & Nature of BOP

The bank of Punjab was established in 1989 and was given the status of scheduled bank in
1994. The bank of Punjab is working as a scheduled commercial bank with a network of
almost 280 branches total over major locations in the Punjab. The bank provides all types of
banking services such as Deposits Local Currency and client foreign currency, remittances,
and advances to business, trade, industry and agriculture.

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Vision Statement
To be a customer focused bank with services excellence

Mission Statement
To exceed the expectation of our stakeholders by leveraging our relationship with the
government of Punjab and delivering a complete range of professional solutions with a focus
on program driven products and services in the agriculture and middle tire markets through a
motivated team.

Value of the bank

Bank of Punjab

As our first priority

For the prosperity of our stakeholders
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That allows us to constantly invest,
Improve and succeed.
Corporate social responsibility To enrich the lives of community
where we live.

Relationship of head office to the branch office

The management of the head office has deep relationship to its branch offices to check the
performance. The Head Offices management also has check and balance on the branch
offices to achieve their desires goals.

3.1.3 Number of departments

BOP is one of the largest private banks of Pakistan. It offers a well-organized structure of
specialized services distributed among its various departments. This departmental segregation
provides BOP with more proper and professional approach and efficient means of performing
each service. Departmentalization makes the services more proficient and specialized
procedures for every job are used.
Each branch is divided into the following departments:
1. Cash department
2. Remittance department
3. Foreign exchange department
4. Credit department

Cash Department
The main function of this department is Payments and receipts. It collects and pays
money to the customers, on behalf of their account, through cheques or any other
negotiable instruments. There are three main functions of the cash department:
1. Payment
2. Clearing
3. Receipts

The cash department issues payments on request. The checks are received by the department
and after their clearance cash is issued to the check-holder.
The payment deals with that customer who withdraws money through cheques or any other
negotiable instruments. The cashier keeps the record of all payments in the register book. At

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the end the payment and receipt cashier checks the balance and count the cash. They verify
that both register cash and the in hand are balance.

Another main aspect in the clearance of checks. It includes verification of proper data,
amount, endorsements, such as issue stamp, clearing stamp and back-side stamp, and
signature. After proper verification of checks the payments are issued. At the issuance of cash
the cash is debited in the clients account.

It is responsible for taking cash deposits from its clients who want to store or invest their
surplus reserves. In the receipt section, the cashier receives money from the customers on
behalf of any individual of the company. Most of the receipt goes through the accounts of the
BOP. The cash receipts are done in two forms:
1. Collection of money from customers in their accounts
2. Collection of utility bills

Collection of money from the customer in accounts

The cash is received from the customers in their accounts. At the time of cash receipt, the
clients accounts are credited.
Every account holder can deposit money in his account at any time in working hour of the
bank, they deposit the money through the bank receive voucher, which is of specific nature
i.e. it may be PLS, current or MBLS etc. So the cashier deposits the money that is received.
He keeps in record the voucher no, amounts, a/c no etc and then presents to the computer
department for posting.

BOP also offers the facility of payment of utility bills. The customer can deposit electricity,
gas, and telephone bills through the bank. The bills are received, stamped and kept in record.
Then it is posted in the corresponding accounts of the bank in which the money is deposited.
It also provides this convenience to private companies as well. Private companies also deposit

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their bills in the BOP accounts, which are similarly receive, kept in record and deposited in
the corresponding accounts.

Remittance Department
Remittance department is related to funds transferring. There are two main kinds of
remittances in which this department deals. These are:
1. Foreign remittances
2. Local remittances
Foreign remittances
Foreign remittances include foreign demand drafts, foreign telegraphic transfers, and online

Local remittances
Local remittances include pay order, demand drafts, telegraphic transfer; rupee travelers
check and mail transfer. All these remittances can be categorized into four main kinds:

Demand Draft
Pay Order
Telegraphic Transfer
Mail Transfer

Demand Draft

Demand Draft is, as its name implies, payable on demand. Demand draft is used for the
transfer of money from one city to another city. This is issued by one branch and payable at
other branch of same bank of other banks branch e.g. Demand Draft issued by BOP payable
by NBP.

Cancellation of DD
On receiving the application for cancellation along with original DD, the signature of the
applicant is verified. This signature should tally with the signature on DD application form.
Then cancellation is marked in DD issued register and the drawee branch is informed about

Pay Orders
Pay order is a kind of instrument issued and paid in the same branch.
Procedure of Issuance of Pay order:

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The client fills the remittances application form and checks on the pay order item. Then a pay
order is issued to him after receiving chargers. All pay orders are crossed i.e. Payees account
only. Pay order can only by cancel by the beneficiary.

Telegraphic Transfer
Telegraphic transfer is used usually when the money is needed to be sent abroad. It is a
facility provided by the bank through which a customer can send or transfer any amount
immediately. The person who wants to transfer the funds may not have the account in the
bank. The customer fills an application form called the Application for Remittance. He
mentions the name of the bank to which he wants to transfer the funds and the name of the
payee, his account number, and his own address etc. The bank charges for this special facility
to the person who is the funds.
There are two kinds of telegraphic transfer:
1. Ordinary Telegraphic Transfer
2. Telegraphic Transfer
Ordinary Telegraphic Transfer reaches to its destination after two days after it is
dispatched. For ordinary TT only two vouchers are prepared:
Commission Voucher
Postage Voucher
Telegraphic Transfer reaches to its payee immediately because the payee branch is
informed immediately through telephone and fax. For this, three vouchers are prepare:
Telephone charges
Foreign Exchange Department
The clearing and cash departments deal in Pak Rupees. Foreign exchange department is
related to foreign currency accounts maintenance. It uses the same procedures as cash and
clearing departments but all the transactions are done in foreign currency. Foreign transfer of
money (FTT) is also used to transfer money in Pakistani Rupee to any other currency, such as
US dollars.
In foreign exchange department, the major things to be dealt with are:

Foreign Currencies Deposits

Foreign Trade
Foreign Exchange Rate

The foreign exchange department deals with the foreign currency accounts. It deals in
following main foreign currencies:
1. US Dollar
2. UK pound
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3. Euro
4. AUD
For Account opening minimum balance for each of these currencies is 500 in the respective
currency. The accounts in which foreign currency accounts can be opened are PLS, Current
Account and Fixed Account etc. These accounts are opened in the currencies other than
Pakistani currency.

Kinds of Foreign Exchange Transaction

The foreign exchange transactions are usually put into four categories:

Current transactions
Capital transactions
ST financial transactions
Working balances

Current Transactions
As regards the current transactions, they are further divided in to clauses.
Visible Trade:
Visible trade is based on the import and export of physical goods known as merchandise.
Invisible Trade:
The invisible trade has no direct relation with import and export of physical goods. It is the
payment made to or received from the foreigners for the shipping, banking, insurance
services received or provided to tem. Interest on capital, dividend or remittance of profits,
etc.; from one country to another also fall in the category of invisible trade.
Capital Transactions
Capital transactions are different from financial transactions. When country grants aid or
gives long-term loans or invests employing foreign exchange in another country, a capital
transaction is then said to have operated.
Short term financial Transaction
If the citizens of one country, due to political or economic reasons, transfer their foreign
exchange resources to another country for a short period, it is then said to be a short-term
financial transaction of foreign exchange.
Working balance
The commercial banks sometimes keep their working balances in foreign currencies in other
countries for earning higher profits or due to the fear of devaluation in the home currency or

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unfavorable political conditions in the home country. In all such cases, the demand for and
supply of foreign exchange is affected.
Imports mean bringing commodity into Pakistan from outside, by sea, land or area. In import
LC play an active role for settlement of payments in international trade service offered by
bank to its customer. The gap between import and export bills partially covered by
regulations, controls and measures covered by SBP and partly by international credit aid, loan
agencies. SBP controls the import by imposing cash margin restrictions on import of general
item from time to time. To restrict to only genuine requirement and to discourage import of
non-commercial and luxury items.

Credit Department
Credit department basically provides two types facilities.

Criteria for Granting loans


The criteria that a banker measures for the advances are as follow.

The person is of sound mind.

He himself is interesting in the loan.
The customer has good character, he has capital, and he has the capacity to pay back.
He has good condition of business.
He never became default of any bank.
The sector in which he is investing is productive.
That sector is important according to nation.
The remuneration on the loan is good.
There is dispersal in the sectors of investment.
The loans are structured on the basis of underlying project characteristics and cash flows
of the business.

Credit proposals
When a customer comes with a request for credit, the credit officer in consultation checks
whether it will be feasible to grant credit to that particular customer or not. After the bank
decides to extend the credit facility to a customer a credit proposal is executed on the
prescribed forms published by the bank. The initiating officer should submit a Credit
Proposal one month prior to its expiry date. The General Managers office must also ensure
that all the basic requirements are complete before processing the proposal any further. The
basic requirements of Credit proposal are:
Analysis of latest financial statement and comparison of borrowers present status with
his historical performance (3 Years). Explanation of any significant variation should be
obtained. Also last annual are being observed.
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Past approval conditions are being observed.
Past performance of the customer in repayments/meeting his obligation.
Comments on:
a) Changes in security position (If any).
b) Management.
c) Future prospects (For the next year).
Return /Income of the corporation.
Bank checking from other lending banks (Every 3 years).
Full complained of SBP Prudential Regulations.
Latest SBP-CIB report to be attached. If there are any company/group over dues, there
must be fully explained. Also the banks action plan is view of overdue to be given.
If group account exists, the entire individual Credit Proposals to have the same expiry
date. In such a case Credit Proposal for each individual account to be attached with a
group summary sheet.

Procedure for submitting Detailed credit Proposal

The customer fills a prescribed form named Credit Proposal.
For short-term accommodation not exceeding period of 90 days form title Short Credit
Proposal is submitted.
For considering the proposal the following points must keep in mind by the bank:

The type of facility, its opening terms & conditions and mode of repayments.
Rates of Mark-up, Charges, Commission, Percentage of Margin.
Security position should be clearly defined. i.e. Security & types of charges over the same
in the banks favor and value of security (Stating basis of estimation).

Manager/Chief Manager must also consider the following factors to motivate his decision to
recommend the credit.

Customers background, financial standing & Integrity.

Profitability & value of the account.
Quantum of business, as banks share, if other banks are involved.
Nature/Value of security easily realizable & adequate to fully cover all facilities afforded.
Careful examination of the following aspects.
Dormancy, if any, in the financing.
Proper spread of bill draws.
Bill dishonored/Overdue for payment.
Critical appraisal of the customers audited/un-audited accounts.\
Strict conformity with all SBP exchanges control.
Examine any facility, which is un-usual.

Credit Approval Process

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As per loan amount and discretionary powers the case is forwarded if the limit amount is in
discretionary powers manager of chief manager the sanction advice is issued in the branch.
The discretionary powers are kept confidential to outsiders. The chain of authority of approve
a loan is as follows

Branch manager
Chief manager
Regional manager
General manager
SEVP corporate
Area credit executive

Credit Proposal Scrutiny Checklist

It includes the following:

Name of the Customer

Expiry Date
Routing Sheet
Basic Information Record attached (For limit excess of Rs.0.5 Million)
Latest Call Report attached
Latest audited financial analysis (Latest financial reports attached)
Credit risk checklist attached

3.1.4 Main Offices

Head office and the main branch of BOP is in Gulberg 3, Lahore & Egerton, Lahore
The Bank has been divided into seven regions
Each consisting a number of branches.

Lahore Region
Faisalabad Region
Gujranwala Region
Rawalpindi Region
Karachi/Quetta Region
Multan Region
Peshawar Region

3.2 Current Staff

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There are 8 employees both managerial. and non-managerial work in the organization.



Sami UllahNazAwan


Arshad Jan

OPS Manager

M farhan Jaffar

Banking Officer

Munir Ahmad

Cash officer

Zaheer Abbas


Niaz Ahmad

Day & Night duty guard

Wahid Hussain Shah

Day Duty Guard

M Ilyas


3.2.1 Current Staff of Branch according to qualification




Sami UllahNazAwan


Arshad Jan

OPS Manager


M FarhanJaffar

Banking Officer

B.Com, ACMA part2

Munir Ahmad

Cash Officer


Zaheer Abbas



Niaz Ahmad

Night & Duty Guard


Wahid Huassain Shah

Day Duty Guard


M Ilyas



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3.2.2 Training received by no. of employees

I received training Arshad Jan Operation manager inSarai Alamgir branch of the Bank of

3.2.3 Workload (No. of hours worked)

9 am to 5 pm business working hours

Non Stop Banking
9.00am to 5.30 pm business working hours
In Friday the timing of bank are:
9 am to 5.00 pm business working hours
1.0 pm to 2.30, Juma Prayer Break.

3.2.4 Salary Structure





Sami UllahNazAwan




Arshad Jan

OPS Manager



M FarhanJaffar

Banking Officer

B.Com ACMA part 2


Munir Ahmad

Cash Officer



Zaheer Abbas




Niaz Ahmad

Night & Day Duty Guard



Wahid Hussain Shah

Day Duty Guard



M Ilyas




3.2.5 Promotion system

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Promotion based on performance and services of employees, otherwise they have also a
chance to get promotion after 3 years according to the policies of head office.
Normally promotion is done on seniority basis. A promotion is due after a person has
completed three years in the same grade.
Its on the basis of their length of service and the written tests and qualifications.



Six years service.


Four years service.


Two years service.

More over interviews and tests also contribute in promotion.

3.2.6 Incentives and Motivation

The bank provides the incentives in the form of health and loan facilities and also motivate
their employees through bonuses and increase in their salaries and sometimes provides
rewards on the basis of their performance.


Critical Analysis

This part of reports is the essence of the internship, as this will help other students to better
understand the working environment of the bank by finding the relationship between what is
written in the books and what is actually going on in fields. The theory written in the books in
cases is not implemented as it is. In some cases theory is implemented with a little
modification but in other cases theory has nothing to do with practice.
In accounting, banks dont prepare worksheet, but part of worksheet is prepared like trial
balance, but little differences, theory and practice has substantial relationship. The securities
for the loans are handled in the same way as theory says like mortgage, pledge,
hypothecation, advances against insurance polices or liquidation procedure is the same. The
difference is there in the case of loans. Theory talks about four or five terms of loans that is
cash finance, overdraft, loans etc. but in practice there are some more terms used like running
finance, demand finance etc. All other concepts of remittances, bills, foreign exchange
deposits, letters of credit are in accordance with theory almost. So for a internee it is more
important to learn new things which he/she has never heard about in his/her course book.
To me, Theory gives you the direction to understand the process and the terminologies going
across the World using best business practices in a broader view covering each and every
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aspect of possible business scenarios. On the contrary practical life is specific, enclosed in a
jar. In practical professionalism and firms environment is each and every thing. Professional
life only builds on the knowledge based on books even thought it may only use 1% of the
theoretical knowledge.
Computer system
The system has not totally shifted on computer. Manual procedure is still there hence
computer facility is not fully availed. There should be a system at each counter for quick

Right person for right job

During my internship I have observed the person who has came as customer Relationship
Officer was acting as Cashier. It should not be like this. The person should be posted
according to his qualification, profession skills and experience.
Customer problem
People have to wait for en-cashing their cheques for about 10-20 minutes, which is not good
for the reputation of bank; the delay is due to manual work. Therefore I suggest that
computers and other electronic machines should be installed in bank so that time could be
Deficiency in management
I felt at some places the BOP need to have employees, because a lot of work is to be done by
a single employee that will result in work overload and employee might not perform his/her
job with full devotion.

1.3.1 Communication system

Communication Department of the Bank of the Punjab is more effective with in and out of
the organization. He prepares the new Deposit Schemes of the Bank and makes the marketing
strategies of these products. Then communicates these plans to all the braches of the bank. He
is being assisted by Corporate Head and Corporate Head is being assisted by Regional Head.
The Bank of Punjab, consumers are treated very well. They are of the opinion that customers
must be satisfied with the services provided by the Bank. All of the Branches try to make sure
that customers are satisfied with services being provided by the Bank.

1.3.2 Hiring system

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Central office at Karachi is dealing with the appointments to different officers posts. And the
central office also fills other executive posts. For certain posts the executives also have right
to appoint the qualified persons. But the main criteria of appointment are by test and
BOP has a criteria already prepared for the appointments of employees. The criteria involve:

Academic work
Extra curricular activities
Working experience.

The candidates must be the citizens of Pakistan and the state of Jammu and Kashmir should
not be more than 25 and less than 18. However in certain cases the age can be relaxed.
Normally the citizen for under developed areas of Pakistan has the age relaxation. The
executives also have the power to employ an over age person etc.

3.3.3 Morale of staff

Good relationship among staff member leads to the peak performances in any organization. I
observed that the staff relationship was normal other wise but some time I noticed that there
exists little conformity among the staff members. The morale of staff is high incasing of
dealing with co-workers, with customers, subordinates and also with other branch members
and head office. They can also improve the morale of staff by giving bonuses and other

3.3.4 Physical Facilities

Bank provides the facilities to their employees. In jalalpurjattan branch there is separate room
for branch manager and also a big hall in which separate cabins for each worker like cashier,
operation manager etc. There is facility of kitchen for staff refreshment and lounge for
visitors. The facility fo electricity, water etc is also available in the branch.

3.4 Performance
Customer focus
Over the years BOP has developed strong relationships with its customers by understanding
their needs and treating them with respect, dignity and importance. The driving force behind
its commitment and services is its focus on customers, ensuring that it not only meets, but
exceeds their expectations.
Quest for Quality
BOP strives to achieve excellence by ensuring that every moment of out times is spent in
adding value, making sure that we do things rights, first time, and every time. With this quest
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for quality, BOP has always taken initiatives in bringing banking into a new arena; from cash
to the convenience of plastic; from branch banking to internet banking and from face-to-face
customer interaction to online accessibility.
Employees Respect
BOP encourages diversity and treats each of our employees with fairness. BOP gives
constructive feedback for their continuous development and seeks suggestions from all
employees for further improvement. The bank ensures that quality performance is
acknowledged and rewarded and exercise utmost responsibility in decision-making with
regards to our employees.
Team Based Approach
BOP believes in achieving its Mission and Vision by working together as a combined group.
BOP treats its employees as its internal customers and ensures that the requirements of
internal customer focus are always met. Equipped with in-depth product knowledge, and
recognizing the strengths in each individual, the bank strives for optimum-results from our
co-workers and bringing out peak Performances by working towards common goals and
objectives in todays dynamic banking environment.
Good Corporate Citizenship
BOP seeks to continuously improve the quality of life in our communities. The bank realizes
that it has a responsibility to the society in which it operates and it seeks ways of playing a
positive role for the betterment of the community at large for a progressive environment,
better living and a brighter future.



The end of the chapter there is a complete introduction of the Bank of Punjab Kutachary
Road Branch has given. Chapter three is all about how the branch is working. In this chapter
it is described that how the head office communicates to the branches. What are the
communication channels in branch itself? Details of different departments working in branch
are also given. Details of offices and field offices are also given. Other head contains data
regarding the current staff of BOP. Details of qualifications and experience of employees is
also given. Training of employees, their workload, salary structure, promotion system,
incentive and motivation of employees is also the part of the system. Morale of employees is
necessary to increase. Physical facilities have their necessary to describe. Then performance
and output is measured not only in terms of customer satisfaction but also in terms of account
holders, employees, etc

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This chapter is related to organization rules and regulations which are adopted by its branches
in order to meet the desired goals. Branch office use the policies made by head office and set
strategies on the base of these policies and get success through this strategies. This chapter
includes Policies, strategies, and successes. I discussed all these elements in detail. At the end
the summary of this chapter is given.



The function of board in making policies are:

Policy formation.
Management of bank. (All branches)
Statement of ethics and business practices.
Corporate strategy.
Others functions.

For policy formation, directors meet once a month. In the meeting policies of the last month
are usually discussed. If there is a need of review, then the directors have he right to do that,
but collectively.
In this the board discussion about the management of all the branches, performance of the
managers of each branch is discussed individually. On the basis of the performance, it is
decided whether a branch manager deserves a reward of his performance or he must be
punished because of his negligence.
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Different departments in The Bank of Punjab perform different functions. There are
department lie shares; customer, credit and they have their respective functions.
Administration department only interferes at the time where there is a problem about the
staff. In the branches, every manager has a direct link with his sub-ordinates. The branch
manager assigns employees of the bank a particular job. Usually there is job rotation is
avoiding the difficulties at the time of absence of any employee. The Board of directors or
higher management sets goals to the managers or middle and lower level of management. The
task specifies not only what is to be done, but also how it is to be done and exact time
allowed of doing it. The board consisting of ten directors and a managing director interviews
managers and upper level management.
Statement of ethics and business practices is prepared and circulated annually by the board of
directions in order to establish a standard of conduct for directors and employees, which
statement shall be signed by each director and employee in acknowledgement of his
understanding and acceptance of standard of conduct.



The board of directors adopt a vision/mission statement and overall corporate strategy for the
listed company and also formulate significant policies, having regard to the level of
materiality, as may be determined it.
The board of directors also performs the following important function:
Risk management
Human resource management including preparation of a succession plan
Procurement oft goods services
Determination of terms of credit and discount to customers
Write-off of bad/doubtful debts, advances and receivables
Acquisition/disposal of fixed assets
Determination and delegation of financial powers
Health, safety and environment
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Borrowings of money and the amount in excess of which borrowing shall be

sanctioned by a general meeting of shareholders

Donations, charities, contributions and other payments of a similar nature.

To be competitive the Bank has further reinforced its position in the Consumer Banking arena
by streamlining and re-launching the consumer financing products and introducing more
convenience based solutions. With the re-launch of auto finance and house finance products,
the Bank pushed the products with full thrust. The Bank also launched a running finance
facility against mortgage of property.
Technology continued to play an important role in improving and expanding product
offerings. The Bank introduced more IT based products to cater to the changing lifestyles and
needs of the customers. BOPs operations continued to be streamlined with focus on
rationalization of expenses, re-alignment of back-end processing to increase productivity,
enhancement of customer service standards, process efficiency and controls. The Banks has
taken the lead in introducing the innovative concept of centralizing Trade Services in the
country by providing centralized foreign trade services to branches with a view to improve
efficiency, expertise and reduce delivery cost.
Management of Human Resources has been one of our core focus areas. BOP is committed
towards attracting, retaining and motivating outstanding people. Challenge for BOP is to
provide an environment in which employees can better realize their potential. The Bank
introduced reward for performance where high potential officers were identified and
rewarded accordingly. In view of the competitive environment, the Bank is focusing on
performance and introducing a more robust performance management system. BOP is also
strongly committed to training its staff at all levels.
4.4 Summary
The summary of the chapter includes following details about policies, strategies, successes
and introduction. What are the policies of organization which are adopted by branch in order
to set strategies and to meet desired objectives mentioned in this chapter details about the
successes achieved by organization by implementing strategies are also mentioned.

Chapter # 5
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This is the fifth and last chapter of my internship report. In this chapter the focus of my study
is on the different types of analysis. This chapter includes SWOT analysis and PEST analysis.
SWOT analysis that stands for strengths, weaknesses, opportunities, ad threats. SWOT
analysis is careful evaluation of an organizations internal strengths and weakness as well as
its environment opportunities and threats.
PEST analysis stands for Political, Economic, Social, and Technological analysis and
describes a framework of macro-environmental factors used in the environmental scanning
component of strategic management. I explained these two types o f analysis in detail. At the
end the summary of this chapter is given.


Swot Analysis

SWOT analysis is an acronym that stands for strengths, weakness, opportunities, and threats
SWOT analysis is careful evaluation of an organizations internal strengths and weakness as
well as its environment opportunities and threats.
SWOT analysis is a situational which includes strengths, weaknesses, opportunities and
threats that affect organizational performance. The overall evaluation of a company
strengths, weaknesses, opportunities and threats is called SWOT analysis.
In SWOT analysis the best strategies accomplish an organizations mission by:

Exploiting an organizations opportunities and strength.

Neutralizing it threats.
Avoiding or correcting its weakness.

SWOT analysis is one of the most important steps in formulating strategy using the
organization mission as a context; managers assess internal strengths distinctive
competencies and weakness and external opportunities and threats. The goal is to then
develop good strategies and exploit opportunities and strengths neutralize threats and avoid


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The Bank officers of BOP are considered as one of the most able professionals in the
banking world. In my observation that they interact with their clients as if they are their
personal friends and discuss about their problems as their own.
As a result of the compassionate and personalized services of the officers, the clients
perception for BOP is very high. They have trust and feel themselves to be secure while
dealing with BOP.
BOP has got a reliable and easy to use internal computer system. Every information
regarding the transactions in customers deposits has been computerized. Data are
properly maintained.
Good security system.
Not excellent but good facilities are given to employees.

Lack of proper internal controls is one of the major weaknesses of BOP. It is also pointed
by the auditor in his review.
BOP has formulized a lot of products and services for its customers, even more than other
commercial banks, but any advertisement on electronic media has not been seen.
I observed during my internship that some of the employees were burdened with over
work. So I think that the work should be distributed according to their post and
Biased selection of employees.

Satisfy dynamic consumer needs, BOP has made significant in roads in its entire service
A lot of products have been introduced especially in Retail Banking (Agriculture side)
and people are increasingly becoming loyal to the bank and because of feasible
transactions. Optimum pricing and branding strategies of the bank are helping to make
customer feel secure and convenient.
All the opportunities of the 21st century are to be availed in the information technology.
Information technology is the future of this dynamic world. Therefore BOP should
emphasize much on IT, especially on E-Banking. Bank can design a universal account
like other foreign banks, to enhance online facilities.
BOP has introduced a number of financial schemes including special Deposit Account.
These accounts have their unique features. During the last three years, BOP deposits have

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been increasing @ 40%, which is a very healthy sign. Therefore, with the commencement
of new schemes there can even be a greater increase in its deposits.

Despite the difficult circumstances that confronted the banking sector in particular and the
country in general, BOP has been still highly profitable. But, the facts cant be denied and
there might be an adverse impact of such situation.
BOP is facing a strong competition by its competitors, Business of all these Banks are
growing at very high pace.


Pest analysis

Political/Legal Environment
The political environment for BOP has been very conducive so far. But as it is clear that the
political instability affects the operations of any institution so it also has an effect on the
working of BOP.

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The September 11 attacks and frequent terrorism in Pakistan are major reasons of the political
instability in the country. The Afghan war and Pakistan being the front line state, has lessened
foreign investments and remittances.

Economic Environment
The economic situation in Pakistan is not so good and mostly there is depression in the
economy. High inflationary rates and international reversionary trends have shown a negative
impact on our economy. These things make the investor more reluctant in investing his

Social Environment
People usually dont have the right information about the products and services that the banks
are offering them. Secondly there is a culture of distrust between the borrower and the lender,
people hesitate to deal with the banks due to their complicated and lengthy procedures, also
due to the fear of higher interest rated. BOP has been successful in maintaining its goodwill
in the society.

Technological Environment
As the world is coming closer and closer day-by-day, new and innovative technologies are
being introduced in the market. The educated customers of the 21st century are more aware of
their needs as they were some years back. Keeping these things in mind, BOP has always
worked and is still working to enhance its technology in order to provide its customers a
better service to its customers. M-NET and online banking services are the examples of the
policies of BOP made for the customer service.



The summary of this chapter includes details regarding analysis of organization. This is the
end of chapter five. In this chapter SWOT and pest analysis are mentioned. SWOT analysis
that stands for strengths, weakness, opportunities, and threats SWOT analysis is careful
evaluation of an organizations internal strengths and weakness as well as its environment
opportunities and threats PEST analysis stands for Political, Economic, Social, and
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Technological analysis and describes a framework of macro-environmental factors used in
the environmental scanningcomponent of strategic management all these are mentioned in
detail in above chapter.

Chapter # 6
After doing a deep study I am able to recommend so following are my recommendation:

ATM machine must be installed so that increases the income of branch.

Improvement in the salary package
On the bases of performance reward should be assigned.
Lack of staff there are only two employees in cash counter so it must be four person to
proper handling of cash because of heavy rush for the payment of utility bill and salary so
two employee must handle utility bills. Third on receives receipts and forth employee

performs all the payments. In this way easily manage all tasks of cash.
To retain customer, bank should adopt competitive rates for its services.
Branch should focus on the consumer banking as will because its a good source of
income to branch.
Transfer is not properly carried out. Some of the employees are continually serving at the
same post. They are simply rotated at the same branch. Therefore it is recommended that
evenly rotation of every employee should take place after every three years in different
braches of the bank.
BOP should start its operation in credit card. These cards are very helpful for the ordinary
customer in general and the business people in particular. To make it mores secure and to
eliminate the misuse of it, the management is required to keep proper security against the
There should be an information desk to provide the information and to receive the
complaints of the customer in the bank. There is no complaint box available in the branch
and not any person appointed to hear the complaints. Every person cannot go to the
manager for the complaint because most of the people are hesitant. So I suggest
management to install a complaint box in the branch, and recruit a special person for that
guidance of the customer when they are unable to manage some difficulties in banking
BOP staff lacks professionalism. They lack the necessary training to do the job efficiently
and properly. Although staff colleges are in all major cities of the Punjab but they are not
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performing well. For this purpose these staff colleges should be reorganized and their
syllabus should be made in such a way which can help the employee understand the everchanging global economic scenario.
Banking council of Pakistan should also initiate some programs to equip the staff with
much needed professional training.

Finally I conclude that due to the cooperation of all branch members I have been able to
learn many new things related to banking sector, I was able to run the day end
successfully at the end of each day, plus arranging all the vouchers, maintaining record of
branch, filling account opening form of customers and handle other tasks as well.
By analysis the financial statements of the bank, I came across to know that it is one of
the most growing banks in the subcontinent. Now they should carry on with the present
management which too k it from one of the ordinary bank to this level. No doubt
professionalism and internal controls of the bank are one of the major issues which may
results some major losses to the bank Bias in hirings and between colleagues should be
THE BANK OF PUNJAB is a good Organization in the way that any body can join it for
his/her long-term career. Overall working environment is comfortable. Management is
very strong and above that its a government bank.

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Sami UllahNazAwan Branch Manager
Arshad Operational Manger
Munir Ahmad Cash Officer

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