INTERNSHIP REPORT ON

BANK OF KHYBER
JINNAH ROAD BRANCH ABBOTTABAD (0113)

Submitted by: Ahmed Arsalan

Roll # S-005-2011

Supervised by: Dr. Amjad Rafiq

Government College of Management Sciences Abbottabad

SESSION
2012-2015

INTERNSHIP REPORT ON
BANK OF KHYBER
JINNAH ROAD BRANCH ABBOTTABAD (0113)

Submitted by: Ahmed Arsalan

Roll # S-005-2011
Supervised by: Dr. Amjad Rafiq

This internship report is submitted in partial fulfillment of the

requirements for the degree of Master of Business
Administration awarded by the Hazara University
Mansehra

Government College of Management Sciences Abbottabad

SESSION
2012-2015

Government College of Management Sciences

Abbottabad

Aproval Sheet
Approval Committee
1. External Examiner

Mr.________________________

Signature_______________

2. Supervisor

Dr. Amjad Rafiq

Signature_______________

Associate Professor

3. Head of Department

Mr.Mushtaq Ahmed_________
Principal

Signature_______________

ABSTRACT
Internship report is an opportunity for the students to apply theoretical knowledge and to
gain practical experience about public and private organizations and their practices and
procedures. Training plays an important part in developing the managerial skills of the
people. Every organization is in search of capable & efficient administrators, who are
properly trained. This training opportunity is provided to the students of Bachelors of
Business Administration through the internship program.
I choose to do my internship in BOK Jinnah Road Abbottabad City Branch because
of the fact that it is a part of the most successful organizational setup in the country and
have had in recent years BOK has shown the will that it wants to stay the best bank in
Pakistan with constant innovations in its products and services, and by making use of the
emerging technologies.
Two months period is not sufficient to understand the operations of organizations. But still it
was a great experience to have a feel of the practical world and keeping in view the
limitations of the study, this seems a reasonable attempt. Internship in BOK Jinnah Road
Abbottabad Branch was a true learning experience for me. I have exclusively studied and
observed the organizational structure, Remittances department and customer services.

TABLE OF CONTENT

CHAPTER NO
CHAPTER NO 1

CONTENT

PAGE NO

INTRODUCTION TO REPORT

1.1

Introduction

1.2

Purpose of study

1.3

Scope of study

1.4

Limitation

1.5

Methodology of study

1.6

Scheme of study

INTRODUCTION TO BANK/Banking

2.1

Origin of Banking

2.2

Defecation and Purpose of Bank

2.3

Banking in Pakistan

2.4

Historical back Ground of BOK

2.5

Scheduled Bank Status

2..6

The Paid up Capital of the Bank

2.7

Branches in Pakistan

2.8

Vision Statement of Bok

2.9

Mission statement of BOK

2.10

Core Values of BOK

10

2.11

Objective and function of BOK

10

BOARD OF DIRECTOR S

13

3.1

Board of Director

13

3.3

Manpower Position

13

3.4

Organizational Structure of BOK

14

3.5

Organization Hierarchy

16

3.6

Departmentalization of BOK

16

3.7

Credit Department:

17

3.8

Finance Division

17

3.9

Islamic Banking Division (IBD):

17

3.10

Internal Audit Division (IAD):

17

3.11

Information Technology Division

18

CHAPTER NO 2

CHAPTER NO 3

3.12

Human Resource Division (HRD):

18

3.13

Treasury and Investment Division

18

3.14

Banking Operations Division

18

SOURCES AND USES OF FUND

20

4.1

Sources of fund of BOK

20

4.2

Uses of Funds

21

4.3

Sources of Income

21

4.4

Expense of Bok

22

CASH, REMITANCES, CLEARING

23

CHAPTER NO 4

CHAPTER NO 5

DEPARTMENTS
5.1

Deposited department

23

5.1.1

Cash Function by BOK

23

5.1.2

Opening of Account

23

5.1.3

Documents Required in account Opening

23

5.1.4

Types of Account

23

5.1.5

Nature of Account

24

5.2

Remittances department

24

5.3

Clearing of bills

26

CHAPTER NO 6

CREDIT

30

CHAPTER NO 7

SWOT ANALYSIS

36

CHAPTER NO 8

FINANCIAL ANALYSIS

38

8.1

FIVE YEAR BALANCE SHEET

38

8.2

FIVE YEAR PROFIT AND LOSS STATEMENT

38

8.3

RATIO ANALYSIS

40

8.4

VERTICAL ANALYSIS

50

8.5

HORIZONTAL ANALYSIS

54

RECOMMENDATION & Conclusion

61

References

62

CHAPTER NO 9

ACKNOWLEDGEMENT
I have great sense of gratitude for the most Beneficent and Merciful Allah who has always
helped me in all matters of life. I tried but He rewarded me more than the tried. Billions of
Darood-o-Salam upon Muhammad (PBUH) Last Prophet of Allah who is the savior of
humanity.

I am thankful to my parents and to their blessings and support and allowing me to intern
where I wanted. They have always soothed me, elevated me and their words and dua has
floated me in the deep seas of troubles. All of my successes are due to my family.
I would also like to thank my supervisor Dr.Amjad Rafiq all the staff of Bank of Khyber
who gave me the confidence and guided me at every step of my internship period. It was
great fun to write this report due to the fact that it was an explanation of what I experienced
and learnt during my internship. It gave me a better idea of how things work practically and
how important it is to deal with all aspects of FINANCE. This report gave me the
opportunity to put into practice of what I had learnt during my internship.
I am thankful to all my teachers and friends whom cheerfulness and guidance is an asset for
me.

Ahmed Arsalan

LIST OF ABBREVIATIONS
BOK
IDBP
SBP
MNCs
ADBP
L/C
L/G
ATM
APD
IPD
IT
BTF
NIT
FC
PLS
HRM
SBU
NDFC
RTCs
AIGP
MT
ETD
MIS
FDD
FS
ETD

Bank of Khyber
Industrial Development Bank of Pakistan
State Bank of Pakistan
Multi-National Companies
Agricultural Development Bank of Pakistan
Letter of Credit
Letter of Guarantee
Auto Teller Machine
Assets Product Division
Investment Product Division
Information Technology
Balance Transferred Facility
National Investment Trust
Foreign Currency
Profit & Loss Sharing
Human Resource Management
Strategic business unit
National Development Finance Corporation
Rupee Travelers Cheques
American International Group Pakistan
Mail Transfer
Electronic Technology Department
Management Information System
Foreign Demand Draft
Financial Statement
Electronic Technology Department

EXECUTIVE SUMMARY

The Bank of Khyber was established through the Bank of Khyber Act passed by the
Provincial Assembly in June 1991. It is the only Bank in Pakistan having its head office at
Peshawar.
My report is comprised upon four section included nine chapters it. 1 st section denote the
introduction and 2nd is complete detail of bank and 3rd section denote that SWOT analyses
4th section denotes financial analyses & Recommendation of Bank of Khyber (BOK).
Chapter one explains about the introduction of the report. It is discussed that how
the internship is important and what a student can learn from it. Chapter 2 is about the
historical background of BOK and circumstances in which BOK was established and its
growth is discussed here. Also discuses about Objectives, Mission and Vision Statement of
BOK In chapter 3 includes Board of Directors and organizational structure of BOK.
Hierarchy of staff and Departmentalization of BOK are discuses. In chapter 4th discusses
Sources and uses of Funds. And chapter 5th about Cash Remittances and clearing
departments of BOK and chapter 6th about credit department of BOK.In the chapter 7
discuses about SWOT analysis. In chapter 8 explain Financial statements are analyzed
Common size analysis. Also the performance of the bank has been shown through ratio
analysis and trend analysis. BOK Jinnah road branch Abbottabad City is getting better and
better with every passing year which shows that bank has sufficient funds to overcome the
liabilities. The profitability position shows decline with the passage of every years. It is not
good because they have low profit and they will have not much to pay shareholder. In last
chapter discuses about consolation and recommendation analysis of BOK like the
Forecasting, cost minimizing policy, marketing policy, training programs, Misuse of office
equipment and improvement in the branch network etc.