Internship Report On:

Z.T.B.L Bank ( Chowk Azam Branch)

Submitted To:

Sir Rashid Saeed sb

Submitted by :

Ghulam Mustafa Muzammil

MBL.17.02

MBA 5th MORNINNHG

BAHAUDDIN ZAKARIYA UNIVERSITY

BAHUDUR SUB CAMPUS LAYYAH

MBA BZU LAYYAH

IN THE NAME OF ALLAH, WHO IS THE MOST MERCIFUL AND THE MOST
BENEFICIAL

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 Dedication

I dedicate this report to

Almighty Allah, The Creator of worlds

And

Hazrat Muhammad (P.B.U.P), the cause of

The creation of the Universe

And

To my parents,

To the persons who loved me, persons whom

I loved and for all those who prayed for me.

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 Acknowledgement

Boundless praise and gratitude to Allah Almighty, the most beneficent, the most merciful, the
source of all knowledge, wisdom and guidance who taught man to read and write with pen and
blessed him with knowledge to not only embark upon this noble and sacred work.

We are nothing but what our great teachers made us, who enriched us with the light of
knowledge and in their guidance, who soar high to eternal heights of character and wisdom. The
completion of this report is only due to the assistance and encouraging attitude of our respected
instructor Sir Rashid Saeed Sb who enabled us to complete this internship.

“God helps those who help themselves”

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 Executive Summary

This report consists of Zarai Taraqiati Bank Limited which is situated Chowk Azam branch.
Consistently focusing on improving performance so that risks can be left far behind. ZTBL was
incorporated as a Public Limited Company on 14th December, 2002 through repeal of formal
Agricultural Development Bank of Pakistan Ordinance of 1961. ZTBL started its services in
1961 under the banking ordinance 1961 as ADBP (agricultural development bank of Pakistan)
till 2002, when it was transformed to Zarai Taraqiati Bank Ltd. (ZTBL) as it was provided with
the funds by federal government, now ZTBL has to earn profit to sustain it as a financial
institutions.

Banking is one of the most sensitive businesses all over the world. Banks play very important
role in the economy of every country all over the world and Pakistan is no exemption. This
report is about one of the leading Agriculture Bank of the Pakistan known as Zarai Taraqiati
Bank Limited. ZTBL is playing its one of the most important role in the development of the
Agriculture Sector of the Pakistan.. This Bank severs its venerated customers in the form of
different customized products. It is providing both type of severs financial and non-financials
mostly to its clients of the rural areas of the Pakistan, which comprises of 68% of the Pakistan’s
total population. The Bank has country-wide network in the form of 349 branches and is severing
round about half of the million clients annually and over accumulated account holder’s
with the average loan size of around Rs.89, 000 serving 65%, 31% & 4% of subsistence,
economic and large growers respectively.

Agricultural Development Finance Corporation was created in 1952 under a Central Act for the
purpose of expanding financial facilities and promoting the development and modernization of
agriculture in Pakistan. In 1957, the Agricultural Bank of Pakistan was established and advanced
both short and long term loans. Both these institutions were merged as Agricultural Development
Bank of Pakistan in February 1961. On December 14, 2002, the Federal Government converted
the Agricultural Development Bank of Pakistan (ADBP) into Zarai Taraqiati Bank Ltd (ZTBL).

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 Table of content
Contents Page No.

Dedications 03

Acknowledgement 04

Executive Summary 05

Introduction of company 07

Vision 07

Mission 07

Department and function 10

Objectives & Financial Statement 13

Financial Analysis 14

Swot Analysis 19

Work done during internship 21

Conclusion 23

References 24

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 INTRODUCTION

The Zarai Taraqiati Bank Limited (ZTBL) (formerly known as Agricultural Development
Bank of Pakistan) is the largest public sector financial development institution in Pakistan.
The bank serves around half a million clients annually and has over one million accumulated
account holders and a wide network of 32 Zonal Offices, 9 Audit Zones and 416 branches in
the country. ZTBL is also providing branch less banking facility to its customers through
Upaisa, a joint effort by ZTBL and U Microfinance Bank Limited.

The Company’s management, combining innovative strategies, aggressive marketing,

creative synergy and visionary approach together with a lean organizational structure capable
of efficient response, succeeded in establishing ZTBL as the largest loan provider to the
agricultural sector at international level.

President

SYED TALAT MEHMOOD

History
Pakistan is basically agricultural country. The finance has been needed for its rapid to meet
this basic need the agricultural development finance corporation was set up in 1951 and
interested with the task of providing financial facilities for the development of agriculture.

Head office

Head office of ztbl is in capital of Pakistan Islamabad.

Branches in Layyah

In district layyah there are total six branches head branch Layyah branch and Chowk Azam,
Karor. Fattah Pur branch and Choubara branch, kot sultan branch.

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 Vision
To meet the needs of the farming community by delivering financial products and technical
services on a competitive and sustainable basis in a convenient efficient and professional
manner leading to the success of the bank and the farmers.

Mission

To play effective role in the promotion of economic growth, by enhancing the availability to the
agricultural sector through reliable access to sustainable financing. Special lending programs,
technical assistance and other products and services, and to promote career development
opportunities for increasing professionalism.

Objectives
Develop and operate as a financially and operationally sustainable R.F.I of the country.

Assist rural community, particularly the small farmers, in raising their productivity and income
levels through timely delivery of credit, advisory and ancillary services.

Build ZTBL's image as a proactive, client friendly, financially & operationally sustainable with
indigenous product deployment.

Establish and provide backward and forward linkages to strengthen agri. value added commodity
chains.

Engage in public - private and wholesale - retail partnership to deepen outreach and reduce
operating cost.

To function as a rural commercial bank to mobilize rural capital formation and to commercialize
the agri. sector by delivering the true value of credit to the client. Provide a wide range of risk
insurance products to its clients.

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 Management chart:

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 DEPARTMENTS AND FUNCTIONS:
CENTRAL ACCOUNTS DEPARTMENT OF ZTBL
Functions

Central accounting department issues instructions related to accounting policies and

procedures.

Central Accounts Department of ZTBL consists of five units like Policy Unit, Accounts Unit,
Corporate Tax Unit, Fixed Asset unit, Prepayment Unit

Functions / Interest Rate

ZTBL charge different rates on different products when loaning in cash rate of
interest is 12% and when loaning off seeds and agricultural machinery the interest rate of is 13%
to 15.3%.

Budget and Fund Management Department Functions

Budget and fund management department of ZTBL mainly develops the policies, procedures
and standards for the budget planning and analysis. It coordinate and cooperate with
administrative and government in order to resolve budget issues. It automates budget process
and preserves the data and obtains approval from Board of Directors for annual budget. It
gather the data of various departments and analysis that for their performance. Further it
consists of four units as described below.

Budget Planning Unit

Budget Analysis Unit

Treasury Unit

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PRODUCTS AND SERVICES

Supervised Agricultural Credit Scheme

Deposits (Fixed, Saving, Current Accounts & Zarai Bachaat Scheme)

Upaisa (Branch less banking facility)

Loan Schemes

Home Remittance

Hajj applications

One Window Operation

Revolving Finance Scheme (RFS)/Sada Bahar Scheme (SBS)

Crop Maximization Project.

REGULATORY REPORTING DEPORTMENT

The regulator gives instructions what to do, when to do and how to do as Government agencies
and SBP etc., while reporting means perpetrations of the reports and submission of the reports.

To the regulators. That’s why this department reports certain information to the regulators and
ensures it that bank has compiled all instructions.

Functions

It reformulates and redesigns system of data capturing, its consolidation and subsequent
reporting keeping in mind regulatory requirements. It ensures the implementation of updated
reporting requirements, which are update time by time.

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 Loan Schemes of ZTBL (Farmers)
Short Term Loan
A loans for shorter period of less than a year. It includes, crop production working capital
loans recoverable in lump sum commencing after the harvest /marketing of respective crops
and within maximum period of 12 months.

Medium Term Loans

Medium term loans are for a period of more than a year but less than 5 years. It includes
dairy farming and livestock etc. the installments of these loans are paid able in

quarterly or half year basis.

Long Term Loans

Long term loans are for a period of more than 5 years. These are development loans which
require large amount and also need some time to show its result in the shape of better production.
It includes loans for tractor, agricultural machinery poultry farming go downs and orchid in
yearly/ half yearly installments within maximum period of 8 years.

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 HUMAN RESOURCE DEPARTMENT:
The organization is made up by three types of resources such as human, physical and
financial resources. Recently the ZTBL can properly utilize their resources more efficiently
in order to strengthen the rural and agricultural sector, mitigate poverty and investment
activities. But the most important is the human resource and which the key ingredient for
success of any organization. Hiring and retaining productive people is critical to the success
of every organization which is permanent, temporary or contract basis. The Human Resource
Division mainly involve in hiring of employees, training and development of employees,
employees motivation… etc... “ Activities necessary for staffing the organization and
sustaining high employee performance” the achievements of the ZTBL and the
implementation plans for future can never be possible without skilled and motivated
employee, for this purpose the HRD makes continuous effort to attract highly educated,
skilled and trained man power in different fields especially in the field of IT, HR and
Finance. The Human Resource analysis is briefly explained as under;

Hiring of Employees:

The ZTBL can hire the employee by submitting the CV I the human resource department. If
the person is eligible for the post, then the head of HRD will call to inform the person for the
interview. Recruitment staff including job description, perpetration, preparing advertisement,
checking application forms, short listing, interviewing and selecting candidate through the
selection procedure is done by HRD.

Training and Development of Employee

Once the employees are recruited by the HRD, it is very important to develop their skills.
There are two ways to develop their skills and to give trainings in the ZTBL Staff collage
such as theoretical and practical training. However, initial training or pre-service training is
given to the employees at initial stage of fresh candidates. This training covers the theory
related topics such as banking rules, regulations and operations. After completing the
theoretical training, they are placed on different branches for getting practical training.
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 Employees Motivation

The ZTBL can motivate their employee by providing different facilities. The employees, who
are motivated, exert a great effort to perform the assigned task effectively and efficiently,
then, those who are not motivated. Various measures are used in ZTBL for motivating
employees. The techniques are follows.

Compensation Package
The compensation is based on employee’s knowledge, education, skills and experience.
There is no fixed pay scale in the bank. Many people get different salaries even though they
had been selected for the same batch under the same circumstance with same qualification
but mostly depend on the grade on which the employee is ranked.

Promotions

The ZTBL can promote the employee to higher grades on the basis of performance during
each year.

Medical Allowance

The ZTBL reimburse the cost of medical advice and medicines, claimed by the employees
for themselves and their departments on production of medical certificates from employees
including disbursement made by him.

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 OPERATIONS DEPARTMENT:
Function

Monitor Branch operations.

Monitor the performance of Zonal offices.

Supervise operations of the branches for identifying the problems and locating weak areas for
remedial measures.

Locate and identify reasons/causes of loss sustained by branches during the year and suggest
remedial measures to make them profit earning.

Evaluate performance of Field functionaries for purpose of awards on good performance.

Evaluate and advise on opening/merger/shifting/closing of branches and bifurcation/merger of

MCO circles.

Examine the suitability of the location of branches.

Handle all administrative matters such as employee training and development, manpower
planning, departmental budget, sanctioning of leaves and tour programs and TA bills of Zonal
Chiefs.

Maintenance of fee of SBP license and ensure their availability in branches for display and
record.

Ensure loan and deposit accounts balancing of branches.

Develop and implement system to record and resolve customer complaints without
compromising on controls.

I am work done by operation department in working performed by customer relationship

manager

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 MARKETING DEPARTMENT
The marketing is a process of managing the performance of business activities designed to
plan product, price and promote, in order to achieve organizational objectives. Though is
sounds simple, the actual practice poses many challenges. The marketing analysis of an
organization plays a vital role in directing its future direction. A good marketing analysis can
give new heights, whereas a poorly designed analysis can prove to be disastrous. However,
the marketing is based on customer’s satisfaction through its value-added products and
services. The ZTBL regularly use different methods of marketing in order to aware and
attract customers regarding their products and services. The marketing analysis is done by
using various methods used by the ZTBL, those are defined as under.
Print Media Advertisement

The ZTBL give different advertisement regarding their products and services in order to
attract large number of customers from time to time.

Product

The ZTBL strategy is offer most comprehensive portfolios of personalized financial solution
that are customer tailored to serve the requirements of customer.

Price

The ZTBL follows the strategy of “low margins, high volume” with its low markup and easy
payment schedule it tend to be more attractive even for customers with less money.

Promotion
The ZTBL effectively advertises its service and product through broaches, book let
magazines and low margin on loan is also the base of promotion.

Placement
With a wide network of ZTBL the bank operates through 25 zonal offices with 324 branches
under them with over 1250 agriculture graduates known as MCO.
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 WORK DESCRIPTION
1st Week:

I spend my first week of Internship at ZTBL Layyah Branch. As I wanted to the

get information and knowledge about work which is going on grass root level, where the basic
work is performing. And rotating in accounts department.

2nd Week:

In second week I learned about

Job was rotated from customer relationship manager working performed.

I calculate the working days of employees and last year and the prepare bonuses for the
employees and allowance to employees to have full attendance last year.

3rd Week:

In this week I learned about

Accounts management and learned that how to manage accounts of customer.

4thWeek:

In fourth week I learned the core issue of banking like account opening and writing
transfer.

5th Week:
In his week I learned about

It ensures the implementation of updated reporting requirements, which are update time by time
and cash scroll, inward and outward remittances and collection of cheques.

6thweek:

In this part I learned and gained a lot of knowledge about system working behind data entering
and customer relationship manager.

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 Financial analysis of ZTBL:

Financial Analysis is the most important analysis which is conducted to check the financial
position of any organization. The brief financial analysis of Zarai Taraqiati Bank limited.

Financial Statement DECEMBER.31 2018

Particulars Amount

Total Assets 151,176,841

Total liabilities 115,865,664

Net Assets 35,311,177

Net Profits 15,775,425

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 SWOT ANALYSIS OF ZTBL

Strengths:

A proper data base system through vouchers, receipts, Generals and software.
ZTBL has a staff college for the training of its employees in Islamabad, through a proper training
and more efficient team of employees can be made which shall be beneficial in tough banking
competition.

It provides the loan to the all needy farmers at cheaper rate of interest rate as compare to the
other private banks or institutions.

The farmers/borrowers have a trust on ZTBL because of its operations and the mobile credit
officers.

Weakness:

They are lacking of banking online system.

Sometimes the lending is done on political basis. Due to the influence of political leaders the
recovery system is affected which leads to bad debts.

The ZTBL bank has no any Treasury department.

Opportunities:

To hire creative, skillful and young employees on the basis of their eligibility and experience. 2.
More rewards and bonus schemes should be for management as well as for employees and
promotion should be on performance of employees.

The motivation level of the employees should be enhanced by increasing compensation and
giving extra fringe benefits.

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Threats:

Increasing probability of danger rains, floods which effect on ell as on lands

Decrease of crop’s rate while formers are going to sell.

Because of single specialized sector and uncertain losses, bank has small profit margin.

PEST Analysis of ZTBL

Politicalanalysis:

Deposits all international and public perceptions today, Pakistan is a functioning democracy and
gradually there is a change in complexion and composition legislatures with more educated
people and women entering into politics. Similarly it helps in developing best strategies to
implement that can support the revival of bank industry. Like in the era of nationalization bank
had to suffer as other industry that is why the impact is still found in the performance of this
industry.

Economic analysis:

Although banking sector development is important at early stages of economic growth, general
liberalization presuming a homogeneous bank role may not necessarily promote growth. The
estimated cost structure indicated that state-owned commercial banks are large enough, while
development financial institutions and private banks can expect to obtain cost saving advantages
by expending their operations. Since scope economies are significant, portfolio diversification
generally increases bank profit. In addition, private bank are the most efficient, followed by
foreign and private banks. Public banks are the least efficient.

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Social analysis:

Banks have always been helpful for the people in improvement of living condition of poor
people in various forms like giving loans for starting business or directly providing them the
instruments that could enhance their living conditions. Similarly ZTBL always tried to loans to
the needy people on soft terms and also helped to eradicate unemployment by providing job
opportunities.

Technological analysis:

There is inadequate communication infrastructure.

Smaller and lowest computer facilities
Inadequate IT training.
There must be an efficient IT department.

WORK DONE BY ME DURING INTERNSHIP

I have worked as an internee in the Zarai Taraqiati Bank limited, Layyah branch for six weeks in
the next week he told me that now I have to start work in the different section. I started my
internship in customer relationship management section. The most of the working was conducted
in this section. There was a lot of burden of work in account section. In this section the following
are major activities are account opening, writing transfer and cash scroll, inward and outward
remittances and collection of cheques.

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 Application of Class Room Learning in Organization:
Practical world is different from that we studied in books. When students getting their degrees
from their institutions, everyone have its mind set goal, either he wanted to start his personal
business or wanted to get a good job. Internship is the compulsory academic requirement where
you are studying in the institute. As I’m student of MBA and I selected the ZTBL Bank for my
learning experience because ZTBL is the developmental organization of the Pakistan.
Its technology is used for the high production development, so that it was our nicer chance to get
into this to enhance the learning approach and get good experience from the organization.

Suggestions

Zarai Taraqiati Bank Limited is a huge name in the agricultural sector and a large number of
loans are provided to the agricultural sector by the Zarai Taraqiati Bank Limited but I
experienced some problems that should be encountered. These problems are:

Transportation facility is not provided to the whole employees, it should be provided to

them.

Recommendations

Top managerial personnel should be trained both at company premises and at the
international level.
Managers are required to get training in the modern scientific management control
methods.

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 Conclusion

Almost all the ratios show a positive trend, which indicates that profitability; solvency and
liquidity position of bank is sound. It means that the organization (ZTBL) is working
progressively and the management is performing its role in a very good manner.

I have worked as an internee in ZTBL for six weeks. During my internship I learned a lot about
the banking work. On first day I reported to the branch manager and he guided me and gave me
information about the branch. In first week he had given me information about the overall
banking in this branch. He told me about the bank and some other basic information about the
bank, customer relationship management etc.

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 References

http://www.ztbl.com.pk/economicReports.htm

http://www.ztbl.com.pk/briefOnZTBL.htm

http://ztbl.com.pk/LoanSchemes.aspx

ZTBL Layyah Branch

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