University of Education

Bank Road Campus, Lahore

Department of Economics and Business Administration

Internship Report
<< BANK OF PUNJAB>>

A REPORT SUBMITTED TO THE DEPARTMENT OF ECONOMICS AND BUSINESS

ADMINISTRATION, UNIVERSITY OF EDUCATION, LOWER MALL CAMPUS, LAHORE IN
THE PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION (HONS)

Submitted By:
<<Student Roll No.: BSF1600044>>
<<Student Name: MAHNOOR KHALID>>
<< Session: (2016-2020)>>
<<Submission Date: 29 SEPTEMBER 2020 >>

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 University of Education
Bank Road Campus, Lahore
Department of Economics and Business Administration
LETTER OF UNDERTAKING

This internship report was submitted by Mahnoor Khalid>> S/o/D/o. <<

Muhammad Khalid>> Roll No. << Complete Campus Roll No: BSF1600044. >> for the partial
fulfillment of the requirements for the degree of

BBA (HONS.)
Session (2016-2020)
with specialization in
<< HUMAN RESOURCE MANAGEMENT>>
And is hereby accepted by the evaluation committee .

Internship Supervisor ________________________

HOD / Coordinator ________________________

External Examiner ________________________

Principal ________________________

Dedication

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 With the help of Allah almighty and the prayers of our parents, teachers and staff of
Bank of Punjab that helped out to complete this internship report well in time. Without their prayers
and guidance we would not be able to complete it so we would like to dedicate our project to them.
God Bless Them. (Ameen)

Acknowledgement
This report is the combination of sincere hard work and dedication. While working on this report I
came across very cooperative personals both in BOP and university. With the help of whom I would
able to complete our internship report. I would like to thank Miss zaiba ,and Miss Sonia Saleem his
competent suggestions and guidance helped out to finalizing this report in different aspects. I am
thankful to the staff of BOP central model Branch and especially to their managers for their
cooperation, who provided me with all the information they could and provided me with an
opportunity to gather as much knowledge as I can. I am highly appreciate suggestions for
improvements in this report and its contents from everyone, especially from teachers as I strongly
believe that nothing is perfect in this world and there is always a room for improvement

Executive Summary

This internship report is a brief study of complete functions, operations, procedures accomplished in
Bank of Punjab central model Branch, Lahore.
This is the age of specialization; every person must be capable in his/her particular field. Some
practical experience is necessary to enter the field because only education given in the universities is
not enough to compete with the worldwide changing situation. The field work is difficult and
complicated. This is a good reason why the students of Bbba Hons. are being given a fair chance to
get the practical area in which students have to enter after completing education.
This report is the result of six weeks performance in the form of internship at BOP. All the
information in this report is based upon my observation, interviews and practical involvement in
different tasks during my internship at BOP and the experience was full of knowledge regarding
various aspects of banking sector. The strong banking sector is the back bone of the economy of any
country. One aspect of this powerful force is government policies and foreign investments. The
banks provide lending, borrowing, safety, availability and transferability of the resources to its
customers in a better way.
So this report is to analyze the financial analysis that perform by the BOP.  The first portions of my
report consist on History of Bop, its board of Directors and review of committee. Further Readers
will able to understand about BOP mission and Vision, main objectives, policy of the organization,
competitors, business volume and product lines too.  In the next portion, Report is giving a whole
picture of BOP hierarchy chart, employee’s information and main offices. In the 3 rd portion, I have
written BOP department’s information, its task, and all department function. So it will increase the
awareness of the readers regarding to BOP Departments activities. The other main and vital portion
of my report is my tasks which have been assigned during internship. In report I have mentioned all

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 departments I worked and got practical knowledge.  Here I want to mention these entire
departments which I got training.

 Account Opening Department

 Remittance Department
 Clearing Department
In the next portion in report, briefly describe the marketing functions, human resource function and
financial analysis. In marketing function, discuss the product and services offered by BOP, its
pricing strategies, distribution channel and promotional activities. In human resource function,
discuss the employees’ recruitment and selection process, training and development program,
performance management system and compensation or appraisal system. In financial ration,
calculate the liquidity ratio, financial leverage ratio, coverage ratio, profitability ratio and assets
turnover ratio.
The main portion of my report regarding to BOP its financial analysis in which discuss the ratio
analysis, horizontal or vertical analysis for last three years. Report will also show you the SWOT
analysis, where readers could able to understand BOP strength, weakness, opportunity and threats.
After that I have also written conclusion and necessary recommendation in light my finding.

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TABLE OF CONTENT
Dedication 3

Acknowledgement 3
Executive Summary 4
TABLE OF CONTENT
Banking History of Pakistan 8
Banking Evolution in Pakistan 8
Nationalization Act 8
Privatizations 8
Overview of BOP 9
Nature of Business 9
Mission Statement 9
Vision Statement 9
Corporate objective 10
Policy of the organization 10
Target achieved 10
Smooth Work 11
Customer Dealing 11
Clear out duties of employees 11
Staff punctuality 11
Competitors 11
Product lines 12
Deposits 12
Retail finance 12
Agriculture scheme 12
Services 13
Organizational structure 13
Organizational hierarchy chart 13
Number of employees 14
Main offices 14

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Introduction of all departments 15

Cash Department 15
Administration Department 16
Deposit Departments 7
Accounts Department 17
Foreign exchange Department 18
Lockers Departments 18
Customer Services Department 18
Marketing Department 19
Remittance Department 19
Plan of internship program 20
Introduction of branch 12
Starting and ending dates of internship 12
Department in which I got training 12
Training program 13
Operations performed by the department where I worked 13
Opening of new account 21
Clearing Department 24
Pension: 27
Day End: 28
Task assigned to me 28
st
1 week 28
2nd week 28
3rd week 29
4th & 5th week 31
6th week 31
Structure of our branch 32
Department hierarchy 32
Number of employees working in branch 33
Sub-department 33

Products and services offered 33

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BOP Current Account 33

BOP ASAAN Current Account 34
Basic Banking Accounts 34
BOP Tijarat Account 35
BOP Salary Plus Account 35
BOP Youth Education Account 36
PLS Saving Bank Account 36
BOP Young Lions Saving Account 36
BOP Behtareen Munafa Account 37
BOP ASAAN Saving Account 37
BOP PLS Direct Pension Credit Account 38
BOP Bai Misaal Term Deposit 38
Agriculture Schemes 36
Other Services 39
Marketing functions 39
Human Resource Management 37
Recruitment 42
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Selection criteria 38
Training and development 45
Methods used to provide the training 46
Employee Compensation and Benefits 47
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Ratio Analysis 40
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4. Error: Reference source not found

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b) SWOT Analysis 57
Strength 57
Weakness 57
Opportunity 58
Threats 58
ANNUAL FINANCIAL STATEMENTS 59
STATEMENT OF FINANCIAL POSITION 59
STATEMENT OF PROFIT AND LOSS ACCOUNT 60
STATEMENT OF COMPREHENSIVE INCOME 61
STATEMENTS OF CHANGE IN EQUITY 62
CASH FLOW STATEMENT 63
Conclusion 64
Recommendation 64
References and sources 65

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Banking Evolution in Pakistan

Our banking history starts with the establishment of the State Bank of Pakistan in 1948, at that
particular time the domestic banks was limited. The aim for the State Bank of Pakistan is to
develop the commercial banking system in Pakistan and make proper channel for financial
resources. So according to that agenda the banks established like National bank, Allied bank and
Habib bank.

Nationalization Act
Commercial banking was at peak in the late sixties and early seventies until the time our
Government declared the nationalization policy in 1974. With this policy 13 banks were taken
into the possession of Government and then merged into six banks.

Privatizations
In 1991, the nationalization act was ended and then again 23 banks were established. Muslim
commercial bank was privatized in 1991 and the management of the Allied bank of Pakistan
took most of its ownership. After that many banks established and by the end of 1997 there were
21 domestic banks and 27 foreign banks.

Overview of BOP
The Bank of Punjab was created under The Bank of Punjab act 1989 in the 16 November,
1889.The BOP established its first branch in Lahore. It was mended as non-scheduled bank on in
the Punjab Province. Because it was government support bank the main customers of the bank
were the Government employees. But with the passage of time they increase their target market.
So in 1994 The Bank of Punjab converted into a scheduled bank and then they opened branches
all over the Pakistan. Today they have 280 branches in all over the country. The Bank of Punjab
has indeed entered a new era of science to the nation under experience and professional hands of

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its management. The bank of Punjab plays a vital role in the national economy through
mobilization of hitherto untapped local resources, promoting saving and providing funds for
investments. The Bank of Punjab offers attractive rates of profit on all deposits, opening o
foreign currency accounts and handling of foreign exchange business for example imports,
exports remittances, financing, trade and industry for working capital requirements and money
market operations.

Nature of Business
One of the most important businesses in the word is banking. In our country banks plays vital
role in the national economy. Banks are like backbone of our country they provide money for
different sectors of the economy keeping our economy progress. They provide finance to the
agriculture sectors which is vital to our economy so they are mobilizing our resources indirectly
or directly.

Mission Statement
“To exceed the expectations of our stakeholders by leveraging our relationship
with the government of Punjab and delivering a complete range of professional
solutions with a focus on program driven products and services in the agriculture
and middle tire markets through a motivated team.”
Vision Statement
“To be a customer focused bank with service excellence.”

Corporate objective

Core Values
Our Customers our first priority.
Profitability For the prosperity of our stakeholders that allows us to constantly invest, Improve
and succeed.
Corporate Social Responsibility to Enrich the Lives of community where we operate.
Recognition and Reward For the talented and high performing employees.

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Respect For our customers and each.

Excellence In everything we do
Integrity In all our dealings
And remittances, financing, trade and industry for working capital requirements and money
market operations.

Market standing
Entity Ratings by PACRA

Long Term: AA

Short Term: A1+

Rating Definition:
Long Term Rating AA: Very High Credit Quality. AA Ratings denote a very low expectation of
credit risk. They indicate very strong capacity for timely payment of financial commitments.
This capacity is not significantly vulnerable for foreseeable events. Short Term Rating A1+:
Obligations supported by the highest capacity for timely repayment.

Policy of the organization.

There are five basic polices. They are as following:

● Target achieved
● Smooth Work
● Customer Dealing
● Clear cut duties of Employees
● Staff Punctuality

Target achieved
In bank every manager gets many targets which top management order to manager. It depend
upon him how he achieve particular targets in this manager has liberty to achieve target. He can
use his personal relation to achieve some targets so a manger has liberty in this.

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Smooth Work
In bank every manager very important policy is smooth work in the bank. No ups and down in
the bank if any conflict arise than immediately take correction action to resolve it.

Customer Dealing
In managerial policy every duty to deal every customer accordingly to his requirements and
fulfills his desire as important in case any customer complain against anything than take every
possible solution to solve it.

Clear out duties of employees.

In managerial policy every manager have right to order straight forward to every employee and
perform accordingly.

Staff punctuality.
In bank every manager have right to notice every employee punctuality if any employee arrive
on time and not obey than every manager has right to issue memo against particular person.

Competitor.
The competitors of the Bank of Punjab are the other commercial banks in Pakistan such as:
Muslim Commercial Bank Limited

 Soneri Bank Limited

 United Bank Limited,
 Allied Bank Limited
 Askari Bank Limited
 Faisal Bank Limited
 Standard Chartered Bank Limited
 Habib Bank Limited
 Habib Metropolitan Bank Limited,
 Bank Al-Habib Limited.

Business Volume

These are the quick facts of the business in December 2019..

At that instant BOP’s business volume is as under:

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Assets (Current + Fixed) PKR 649,709,442,000

Loans PKR 603,005,560,000
Deposits PKR 619,869,564,000

Product Lines
BOP products includes all those services which customer normally required for effectively
managing his business. BOP offers following financial products and services to its customers;
● Deposits
● Retail finance
● Agriculture scheme
● Services

Deposits
One of the basic function of commercial banking is to receive deposits. BOP accepts deposits in
both local and foreign currency.
● Current account
● Asaan account (current and saving)
● PLS saving account
● Basic banking account
● BOP Tijarat account
● BOP life current account
● BOP salary plus account
● BOP youth educational account
● BOP behtareen munafa account
● BOP young lion saving account
● BOP PLS direct pension credit account
● BOP bai misaal term deposit

Retail finance
We are offering the following products:
● Advance Salary loan
● Auto Financing (CarGar)
● Fleet Financing
● House Financing

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● Apna Rozgar Scheme

● BOP Solar

Agriculture scheme
● Kissan Dost Production Loan
● Kissan Dost Lease Finance Facility
● Kissan Dost Cold Storage Finance Facility
● Kissan Dost Green House Finance Scheme
● Kissan Dost Livestock Development Scheme

Services
BOP offers various services which are following;
Trade processing center
 Collection of cheque
 Utility bills
 BOP lockers
 ATM / debit card services
 Mobile banking

Organizational Hierarchy Chart

Chairman

Board of directors

Managing Directors

General Managers

Finance Admin Operation Audit Marketing Treasury

Division Division Division Division Division Division

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Regional Chief

Lahore Karachi Multan Faisalabad Gujranwala Rawalpindi

Region Region Region Region Region
Region
Branch Managers

Advances Remittance Foreign Deposit Locker

Department Department Exchange Department Department
Departmen

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

Main offices
 Karachi region
 Islamabad region
 Lahore region
 Rawalpindi region
 Faisalabad region
 Gujranwala region
 Gujarat region
 Multan region
 Bahawalpur region
 D.G Khan region

Introduction Of All Departments

BOP has many departments are following:
● Cash Department
● Administration Department
● Deposit Department
● Bills Department
● Accounts Department
● Foreign exchange Department

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● Lockers Department
● Remittance Department
● Customer service department
● Marketing department
Cash Department
Working; The main purpose of cash department is that it deals in money. As bank is borrowing
and lending institution, therefore cash is the top most priority of Bank. Another aspect is that
cash department is for the security purpose, security in a sense that there should be no
embezzlement of funds or in money leaded to bank by any party or person. The efficiency of
bank is also related to this department the more efficient the bank is the stronger and busy is the
cash department.
Cash department is divided into two categorize.
1) Receipts
The receipts side deals in
● Collection of funds.
● Acceptance of deposits.
● Collection of utility bills.
2) Payments
The payments side deals with
● Payments of check
● Remittances.

Administration Department
● Staff matters and salaries bonuses etc.
● Branch security documents
● Security matters
● HO various circulars and correspondence
● Staff matters
● Scanty and other benefits
● Audient of various kinds of laws
● Staff duties and assignments
● Security matters
● Branches internal / external matters

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Deposit Departments
Working :It refers to the money received by bank from people, parties, institutions etc. The
Bank keeps these funds. People keep these funds with bank because of following purposes:
● Security
● Profits
● Gifts Schemes
● Proper usage of funds
Mostly the bank keeps these funds in two shapes i.e.
● Current A/C
● Profit & Loss A/C
There is no profit on current A/c and there is no limit of transactions. As there is a percentage of
profit gives on PLS saving A/c and the number of transactions are limited.

Local Payment:
For local payment through Pay Order (PO) , Call Deposits receipt (CDR).

Outward Payments:
For outward through Demand Draft (DD) , , Telegraphic Transfer (TT) , Mail Transfer (MT).

Accounts Department
● Pension and payments of cheques.
● Posting for preparing vouchers through general ledgers accounts
● Balancing of various heads of accounts on weakly/monthly/half yearly/yearly basis.
● Preparation of internal / external various statements and reports
● Deposits of Government Treasury.
Foreign exchange Department
● Opening of Foreign Currency Accounts.
● Collection of Foreign Currency Accounts.
● Outwards Foreign Bills for Collections.
● Inward Foreign Bills for Collections

Lockers Departments
Locker Size Annual Fee

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Small Rs.1,200

Medium Rs.1,800

Large Rs.3,000

Extra Large Rs.6,500

Customer Services Department

● Receipt of Cheques from customers.
● Preparation of transfer delivery /clearing.
● Maintenance of clearing proceed account.
● Preparation and realization of OBC
● DD payable advises posting and vouchering.
● Early settlement of DD-II entries.
● Balancing of DD payable.
● Payment of DD/TT/MT’s & vouchering.
● Pak account reconciliation
Marketing Department
The marketing department of the Bank of Punjab doing wonderful job. Because of competition
in market there are many other Bank is exiting in the market at that time.

Remittance Department
It is very important department of the bank. Remittance is a transfer of funds from one place to
another or from one person to another or to the same person. Modes or ways of Transfer the
following are basis modes in which funds are transferred.
● Demand Draft
● Mail Transfer
● Traveler Cheque
● Pay order / Pay slip
● Call Deposit Receipt
Bank provides these services to its customers and also charge commission for that.

Demand Draft
It is also called banker instrument. It is an instrument which is issued by banker at the request of
purchaser which is drawn on another branch of the same bank. Demand draft is just like a cheque
basic different is that it is always drawn on the branch of same bank where as cheque can be

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drawn on any bank. Just like a cheque demand draft may be opened or crossed. It is negotiable
instrument because it can be endorsed from one person to another.

Demand Draft Issuance Registers:

Whenever any draft is issued they are recorded in draft issuance register. These drafts are given
control number via no. of draft issued to particular branch.

Treatment For Lost Draft

If customer loses the draft, he will be approach to issuing bank. Bank will ask the customer to fill
the application form, then issuing bank will inform paying bank about the loss of draft. Paying
bank after receiving this information will mark stop payment on its draft payable register and
send confirmation to issuing bank about stop payment.

Mail Transfer
It is also one of the modes of remittance and is used for transferring money from one place to
another. The person desirous to remit money through MT shall fill an application form called
MT application form. The applicant shall provide all the necessary information to the bank. The
remitter of the funds signs this application form. The officer gets all the bank charges and
amount from the customer and issues M.T. in this case no instruction is handed over to the
remitter. The message for the payment is conveyed to the paying branch through inter branch
credit advice, payment is made to customer.

Travelers Cheque
It is just a shape of demand draft. The difference is that it is not drawn on specified branch. It
can be drawn on any branch of same bank. The paying bank has to be verified the signature and
after verification payment is made.

Pay Order
It is used to secure the payment. In case of pay order issuing and paying branches are same. Pay
order can be endorsed if it is not crossed. The amount of pay order together with bank’s charges
is paid by the purchaser in cash or by cheque or on the letter of authority. Pay order may be
presented for payment by the payee either over the counter for cash payment or the payee may
transfer credit to his account. The person who makes the pay order cannot stop payment. The
person in whose favor the pay order is made can release payment of pay order. Pay order is valid
for six months.

Call Deposit Issuance Of CDR

The following is the procedure for the issuance of a call deposit receipt:

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● Deposit is acceptable in cash or through cheque and processed in the books of the bank
accordingly
● Depositor / purchaser is required to make a written request for the issuance of a CDR on bank’s
prescribed form.
● In addition to the amount of the call deposit commission at a flat rate or Rs. 10 is also to be
received from non-account holder
● After the receipt of that amount CDR is to be issued. The receipt also contains the following
information:
● Name of issuing branch
● Printed serial number of the receipt.
● Date of issue
● Name of beneficiary / payee along with the made of depositor / purchaser.
● In case deposit is made by the purchaser in favor of government/ semi government department.
Receipt is issued in the name and designation of the concerned official of the department.
Account of the purchaser/ Tenderer.
CDR must be signed by two duly authorized officers of the branch.

Comments on the organizational structure of Bank of Punjab

Division of Labor
The structure of the Bank of Punjab is divided into division and these divisions are further divided into
departments. This type of structure helps the management in controlling the operations of the bank
effectively. Each division is responsible for its respective duties.

Span of Control
Span of control among hierarchical structure is clearly defined. Each department reports to its
general manager and then this central department reports to the chief executive.

Communication
Communication among the organizational departments is easy. Horizontal and vertical
communication among departments is very effective.

Plan of internship program

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Introduction of branch
I did my internship in BOP central model school branch. The supervisor has been assigned to
me is Miss Zaiba when I start my internship in bank they provided me full support.
Muhammad Asif branch manager
Tayyab Maqsood operation manager
Miss zaiba Talib CSO
Waqas shahid cash manager
Farooq makhdoom BSA/MI
Khizar Shah RTO
Muhammad Omer cash officer
Muhammad Tayyab cash officer

Starting and ending dates of internship

Starting date of my internship is 01 July and ending date of my internship is 20 August Complete
my 6 weeks internship in different departments.

Department in which I got training

Names of the department in which I got training are following as;
● Account opening department (3 weeks)
● Clearing department (1 week)
● Remittance department (2 weeks)
Training program
Operations performed by the department where I worked

Opening of new account

The opening of new account is the establishment of customer banker relationship. In this Section
I gain the practical knowledge about opening account. In this regard customer can Open
following accounts in BOP:
● Current account (CD)
● Profit and loss Saving account (PLS)
● Basic Banking Account (BBA)
● Saving Plus Account (SSA)
● Foreign Currency Current Account (FCN)
● Foreign Currency Saving Account (FSN)

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In this department, I gain the practical knowledge about opening account. This department deals
with opening current and saving account for its customers opening current/saving accounts
can categorized as following
● Individual
● Firms
● Company
● Trust
● Staff
● Salaried person
● Joint
● Proprietorship
● Club/society/trust
● Security account
● corporation
● Others

When customer wants to open an account in a bank he visits the particular branch and bank
officer suggests him that which type of account suits its needs. Bank of Punjab offers various
types of products (accounts or deposits) to its customer. Those are mentioned above.
On account opening form following things are also marked:

● Branch
● Branch code
● Account number allotted to customer
● State bank code according to type of account
● Date
● Currency of account that can be PKR, USD, GBP, JPY, EUR etc
● Photographs
● Title of account
● Father/ husband name
● Mailing address
● Telephone numbers
● E-mail address
● Nationality
● Signature
● Introducer’s (if any) account number, CNIC, signature
● Applicant’s signature or thumb impression
● Applicant’s CNIC number
● Mentioning Nominee in case of expiry of three years from the date of last transaction

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● Usual mode of transaction that can be cash, collection, clearing, remittances etc
● Initial deposit
● Type of customer that can be walk in, marked, referred by etc
● Source of funds that can be salary, business. Agriculture etc.

Precautions before opening an account:

● Before opening of an account, the banker should obtain satisfactory introduction of the applicant.
● A banker should obtain specimen signature of opener on the account opening form and also on
the card.
● The account opening form must be filled completely, correctly and with proper attention.
● The banker should get personal information about the character and capital of the customer
tactfully.
● New accounts must be opened with cash. A cheque may create problems.
How to Issue A New Check Book?
When account opens we take a new requisition form signed from customer (anexF-11) and sent
it to NIFT (National Institutional Facilitation Technologies).

NOTE:
● Simple cheque book means charges will be deducted when issuing cheque book to customer.
● If we type “P” then system will show cheque number automatically.
● If we type”S” then we have to enter cheque number by ourselves.
Then N for Normal entry and In BTA’s accounts if the balance remains up to RS.100, 000 or
more than RS.100, 000, then the cheque book will be issue free of cost.
Procedure of Issue Cheque Book to Customer
● Take out the requisition slip which we received from the customer during account opening.
● Then we enter present date, title of account, account number and first cheque number to last
cheque number.
● Then we enter cheque book in system through respective module, here we enter account number
then “P” for personalized cheque book and “S” for simple cheque book.
● Personalised cheque book means that charges had been already deducted from the customer
account.
● E for entry and note the transaction number for
authentication from another officer.

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Important Note:
If we are issuing a cheque book to account holder whose account is photo, then we have to affix
the following stamp on each and every page of the cheque book.
“All the cheques signed/ Thumb impression to be affixed in the presence of the officer and
attested by him”

Procedure of Issue 2nd Cheque Book to Customer:

Take out the requisition slip which we received from the customer from old cheque book.
● Then we enter present date, title of account, account number and first cheque number to last
cheque number.
● Then we enter cheque book in system through respective module, here we enter account number
then “P” for personalized cheque book and “S” for simple cheque book.
● PERSONALISED cheque book means that charges had been already deducted from the
customer account.
● SIMPLE cheque book means charges will be deducted when issuing cheque book to customer.
● If we type “P” then system will show cheque number automatically.
● If we type ”S” then we have to enter cheque number by ourselves.
● Then N for Normal entry and E for entry and note the transaction number for authentication from
another officer.

Clearing Department
In this department, I have worked for one week and prepared the clearing myself. My
responsibility was to receive all the clearing cheque and to make a schedule of these cheque after
making an entry in the inward or outward clearing registers and then to submit these schedules
along with the cheque schedules along with the cheque to the main branch. Main branch receives
the cheques from all of its branches and makes the lots of these cheques again. Main branch send
these cheques to the State Bank of Pakistan where a clearinghouse exists. In this clearinghouse
the representatives receive their cheques and go back to their bank’s main branch. Then main
branch sends these cheques to their relevant branches where the validity of these cheques are
verified and the accounts of the relevant clients are affected. Then an advice is sent to the issuing
bank that the cheque is honored. In case, if the cheque is dishonored a memorandum is issued to
the bank on which various reasons of dishonor are printed and one or more reasons are marked
due to which the cheque is dishonored. The statement of clearing was submitted before 1.00
P.M. daily. The whole procedure of clearing is completd within 2 days.

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Types Of Clearing
Clearing department deals with the two types of clearance.

1) Inward Clearing
When the cheques of other banks are deposited in our bank these cheques are verified from the
issuing bank first after due verification these are credited into the account holder’s account. This
is called inward clearing.
Procedure Of Inward Clearing:
In outward clearing we receive an advice, but in inward clearing we receive the schedule of
cheques which had been came to us for clearing.
STEP#1:

We will enter the total amount of schedule of the cheques and number of cheques in the
respective module.

STEP#2:
Then we enter the cheques of inward clearing, here we enter the type of the instrument (cheque,
pay order, demand draft, etc), account number, amount of the instrument, number of the
instrument, code of the bank etc.
We have to see “clearing stamp” “crossing stamp” on front and “payee’s account credited” on
back of the cheques of inward clearing.
We have to apply the “signature Verified stamp” and “transfer stamp” of today date on the
cheques of inward clearing and outward clearing paid on the same date after there entries in
system.
NOTE: If there are two stamps of crossing then in back there should be a stamp of “Our branch
endorsement confirmed”. If there is no stamp like this on back of the cheque then there must be
“cancellation stamp” on first branch crossing.

NOTE: When a cheque is issued in favour of a bank in inward clearing, then another additional
stamp known as “Received payment for bank…….” Is placed on back of the cheque.

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STEP#3:

After the above procedure, we will do main entry in JV, here we,
DEBIT……..STATE BANK OF PAKISTAN ACCOUNT.
CREDIT…….HEAD OFFICE ACCOUNT.
Then some options appear.
For sending inward clearing we select “O” Originality.
For receiving outward clearing we select “R” Responding.
Then we do the entry of cheque returned as follows;
DEBIT…….CHEQUE RETURNED CHARGES.
CREDIT…….MISCELLENOUS EARNIGS.
We will do the above entry in system and manually in “cheque returned register”
STEP#4:
The last step is we attach memo with the returned cheque and send it back to the person, through
the person sending by NIFT.
2) Outward Clearing
When the cheques of our banks are deposited in other banks and those banks are send these
cheques to us for verification. It is called outward clearing. After due verification we debit the
account of client with same amount.
CLEARING HEAD IS “STATE BANK OF PAKISTAN”

Local Bills for Collection (LBC):

When a customer receives the cheque of his same bank, but the branch is different, then he
submits the cheque in his own bank (the branch in his account is present) then that branch send
the cheque to the respective branch for collection, this procedure is called Local bills for
collection.
For Example: Customer of Chaburji branch receives the cheque of Gulshan-r-Ravi branch, then
the chaburji branch sends that cheque in Gulshan-e-Ravi branch for collection, then credited the
account of the customer in his own branch. This is called local bills for collection.

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Outward Bills for Collection (OBC):

When a customer receives the cheque of his bank or any other bank, which is situated out of city
then he submits that cheque in his own bank branch (where his account is present) for collection
from another bank. This is called outward bills for collection for that bank.
How To Send Outward Clearing And Collection:
First of all we do outward clearing lodgment, in the whole day customers gives us their clearing
cheques then in afternoon we lodge these cheques to their respective banks through the person of
NIFT in the afternoon, but we place vouchers of the cheques with us for proof. Before lodgment
we place the stamps of “clearing stamp of next day” and “crossing” on cheques and vouchers and
“Payee’s account credited” stamp on back of the cheques. Then we enter the clearing entries in
the system in their modules. Then we enter the collection entries in the system in their modules.
For collection lodgment we place the “crossing stamp and payee’s account credited on
realization” on front and no stamp on vouchers.
Next procedure of outward clearing in the morning is as follows:

STEP#1:
After sending outward clearing we receive an advice from our head office main branch. Advice
contains:
● Total amount of cheques send.
● Total amount of rejected cheques.
● Net amount after rejection.
Then in the system we reject that cheque which is rejected in advice, and then match the total of
advice with the total of the system.

STEP#2:
Then we enter the advice total amount in the system. Here we
DEBITS………HEAD OFFICE ACCOUNT.
CREDIT………STATE BANK OF PAKISTAN ACCOUNT.
Then we save it and note the transaction number.
STEP#3:

Then in the system we enter the rejected cheques and closing of outward clearing.
On all the vouchers we place the stamp of “transfer” and “signature verified” and on advice we
place the stamp of “signature verified”.

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STEP#4:
If cheques are rejected due to some reason (either they are of inward clearing or outward
clearing) then a memo is attached to it, and the reason of rejection is mentioned on the memo.
After attaching memo we enter the rejected cheque in “cheque returned register” and then send it
back to the respective bank through NIFT person.

Cheque Returned Memo:

Cheque returned memo includes the following:

● Branch name…….
● Branch code……
● Title of account…..
● Date…….
● Cheque number…….
● For rupees………

Pension:
Different companies give pension to their employees through the bank. Companies send their
pensions in the bank. The pension account has no deductions. When the employee comes to the
bank they show a card to the bank which the company gave them, then the cash officer make
entries of the pension in JV.
DEBIT…… PENSION A CCOUNT.
CREDIT…….. PESIONARS’S ACCOUNT.
Then save it and note the transaction number.
Then go to the cash account module in the system and there DEBIT the account of the
PESIONAR’S and gave the cash amount of the pension to the pensioner.

Online Payments
Customer Side Procedure:
When the payment is end by the sender which is sitting out of country, the code of 10 digits is
issued to the sender by Exchange Company of foreign country. Then the sender tell that code in
Pakistan to the receiver of the payment, then receiver go to the bank, give his ID card copy and
code to the bank receives payment.

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Bank Side Procedure:

When the receiver of the payment (customer) comes to our bank and told us the code which he
had received from sender of the payment, name of the sender, his own name Our operational
manager feeds that code in the website of the exchange company, then the whole information,
such as;
● Name of the sender.
● Name of the receiver.
● Amount of payment send.
● Date of the payment send.
Appears in front of the manager, and then if the information is correct he takes the printout of all
the information, attach the photocopy of ID card of the receiver with it and give him the
payment.
After that manager go to the respective module, enter the code of Exchange Company, enter the
amount and respective information, and then note the transaction number.
If the code is of 16 digits then it is understood that the payment is from the UAE.
Online payments are also done between the respective branches of the banks, from one account
to another account.

Day End:
At the end of every working day, bank has to close the day transactions in the system. So, at the
end he has to note the number of transactions, cash on hand, date, deposits etc.
All these figures are obtained by running day end in the system in their respective module.
Then next working day, he has to put all these figures in day start module in the system. After
this whole procedure, system will allow us to work in the next working day. Otherwise the
system will not allow to work and asks us that we had not closed the last working day.

Task assigned to me
1st week
During my first week of internship, my supervisor gave me a brief detail of the stamps that are
used for daily transactions and cheques, as well as she directly deals with all types of customers.
I met with different types of employees as well in this department who are very helping and

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friendly. I really had a great experience of customer dealing. She taught me how to deal with
different type of customers and how to react in awkward situations.
In my first week I also had an experience of issuing cheque books to the account holders. Issuing
cheque books was quite easy and simple task. It includes the following steps,
● When a customer opens an account and made a relationship with the bank, at the time of filling
the account opening from the account holder requests the bank to issue a cheque book to
him/her.
● Then the bank considers the request and within a week, the bank send a cheque book to the
relative branch where the account holder has its account.
● The bank posts a letter to the customer that his/her cheque book has given to the branch, after
that the customer can come to branch at any time within a time span of 2 months. And if
customer does not come to get his/her cheque book within this time then his/her cheque book is
destroyed and the customer had to again send a request to the bank.

2nd week
In the second week, my supervisor assigned me the work to cheque vouchers. Vouchers contain
the cheques, remittance forms, payment orders, payroll, pension forms, clearing cheques, in short
all the records of the transactions that a bank handles daily.
In those vouchers, I had to cheque that all the documents are properly filled and there is no
deficiency left. And if there is any deficiency, I had to fill that deficiency by the concern of my
supervisor. Mostly those vouchers had a problem of stamping, means the stamps are not properly
marked on those documents. Or the denomination was not there.
By checking those vouchers I came to know that how to fill cheques and deposit slips and
remittance form, what stamps should be required to fill up those documents.

3rd week
In the third week, I gain the practical knowledge about opening account. In this regard customer
can
Open following accounts in BOP:
● Current account (CD)
● Profit and loss Saving account (PLS)
● Basic Banking Account (BBA)
● Saving Plus Account (SSA)
● Foreign Currency Current Account (FCN)
● Foreign Currency Saving Account (FSN)

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In this department, I gain the practical knowledge about opening account. This department deals
with opening current and saving account for its customers opening current/saving accounts can
categorized as following
● Individual
● Firms
● Company
● Trust
● Staff
● Salaried person
● Joint
● Proprietorship
● Club/society/trust
● Security account
● corporation
● Others
When customer wants to open an account in a bank he visits the particular branch and bank
officer suggests him that which type of account suits its needs. Bank of Punjab offers various
types of products (accounts or deposits) to its customer. Those are mentioned above.

On account opening form following things are also marked:

● Branch
● Branch code
● Account number allotted to customer
● State bank code according to type of account
● Date
● Currency of account that can be PKR, USD, GBP, JPY, EUR etc
● Photographs
● Title of account
● Father/ husband name
● Mailing address
● Telephone numbers
● E-mail address
● Nationality
● Signature
● Introducer’s (if any) account number, CNIC, signature
● Applicant’s signature or thumb impression
● Applicant’s CNIC number
● Mentioning Nominee in case of expiry of three years from the date of last transaction

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● Usual mode of transaction that can be cash, collection, clearing, remittances etc.
● Initial deposit
● Type of customer that can be walk in, marked, referred by etc.
● Source of funds that can be salary, business. Agriculture etc.

4th & 5th week

In the fourth and fifth week, I gain the knowledge about remittance department in which I
learned about the online payments such as;
● Xpress money payments
● Easy pay payments
● Western union payments
● Salaries pays to OZPAK employees
● PEEF scholarship payments

Online Payments
Customer Side Procedure:
When the payment is end by the sender which is sitting out of country, the code of 10 digits is
issued to the sender by Exchange Company of foreign country. Then the sender tell that code in
Pakistan to the receiver of the payment, then receiver go to the bank, give his ID card copy and
code to the bank receives payment.

Bank Side Procedure:

When the receiver of the payment (customer) comes to our bank and told us the code which he
had received from sender of the payment, name of the sender, his own name then we enter the
code in the website of the exchange company, then the whole information, such as;
● Name of the sender.
● Name of the receiver.
● Amount of payment send.
● Date of the payment send.
If the information is correct he takes the printout of all the information, attach the photocopy of
ID card of the receiver with it and give him the payment.
If the code is of 16 digits then it is understood that the payment is from the UAE.
Online payments are also done between the respective branches of the banks, from one account
to another account.

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6th week
During my last week, I got the opportunity to learn something from clearing department, but
unfortunately, I didn’t stay there for long time, maximum I spend three or four days and during
that time my responsibility was to receive all the clearing cheques and to make a schedule of
these cheques after making an entry in the inward or outward clearing registers and then to
submit these schedules along with the cheques schedules along with the cheques to the main
branch. Well, overall that was a good experience though.

Structure of our branch

Department hierarchy

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Number of employees working in branch

Total number of employees in central Model school branch lower mall campus Lahore is nine.
The branch is handled by branch manager Muhammad Asif.

Sub-department
There is no sub department exist in bank of Punjab Central Model School Branch.

BOP Current Account.

Current bank account is opened by businessmen who have a higher number of regular
transactions with the bank. It includes deposits, withdrawals, and contra transactions. It is
also known as Demand Deposit Account. Current account can be opened in co-operative
bank and commercial bank. In current account, amount can be deposited and withdrawn
at any time without giving any notice. It is also suitable for making payments to creditors
by using cheques. Cheques received from customers can be deposited in this account for
collection.

Features of Current Account

The main features of current account are as follows: -
 Current bank accounts are operated to run a business.
 It is a non-interest-bearing bank account.
 It needs a higher minimum balance to be maintained as compared to the savings account.
 Penalty is charged if minimum balance is not maintained in the current account.
 It charges interest on the short-term funds borrowed from the bank.
 It is of a continuing nature as there is no fixed period to hold a current account.
 It does not promote saving habits with its account holders.
 Banker requires KYC (Know your Customers) norms to be completed before opening a
current account.
 The main objective of current bank account is to enable the businessmen to conduct their
business transactions smoothly.

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 There is no restriction on the number and amount of deposits.

 There is also no restriction on the number and amount of withdrawals made, as long as
the current account holder has funds in his bank account.
 Generally, bank does not pay any interest on current account. Nowadays, some banks do
pay interest on current accounts.
BOP ASAAN Current Account
Opening of a bank account is not an easy task nowadays. A long list of formalities is required to
open a bank account. The Bank of Punjab is now introducing a simplified account "BOP Asaan
Current Account". This is a current account for low risk common people/individuals who face
difficulties in account opening due to strict requirements/formalities. These segments of society
may include but are not limited to self-employed, pensioners, students, farmers,
women/housewives, young adult population, work force etc.
● This is a non-profit bearing account with value added features.
● Account can be opened with a low as Rs.100/- initial amount.
● Account can be opened as individual, joint or minor type.
● Account can be opened with minimum formalities and on one pager account opening form.
● There is no minimum balance requirement.
● There are no Service Charges.
● The account will preferably be ATM/Debit Card based. However; cheque book may be issued as
per choice of the customer.
● Master Debit Card at subsidized rate of Rs.250 per annum for both issuance and renewals.
● 1st cheque book of 25 leaves is Free.
● SMS Alert service is available at subsidized rate of Rs.400/- (plus taxes) per annum.
● Per Month Total Debit Limit is Rs.500,000/-
● Total Credit Balance limit is Rs.500,000/-
● Account can be converted into normal current account after completion of remaining formalities
if later on, accountholder requires financial services for higher amounts than the above specified
limits.
● Existing Basic Banking Accounts (BBA) can be converted into BOP Asaan Current Account as
per terms & conditions.

Basic Banking Accounts

● This is a Non-profit bearing chequing account product.

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● The deposit product is available especially for customers like students, mustehkeen-e-zakat,
salary accounts of government and semi government employees, pensioners, widows and
children of deceased employees eligible for family pension/benevolent fund grant.
● The Account can be opened with an initial/minimum deposit of Rs.1,000/-
● No fee (service charges) for maintaining such accounts will be charged.
● There is no limit for maintaining minimum balance in the account. However; if balance in BBA
account remain "NIL" for continuous (06) months period, such accounts will be closed by the
bank.
● Account holder will be allowed a maximum of 2 deposit transactions and 2 chequing
withdrawals, free of charge either through cash/through clearing per month otherwise service
charges of a regular banking account shall be applicable for that month as per Bank's Schedule of
Charges.
Unlimited free of charge ATM withdrawals from Bank's own ATM's will be allowed.

BOP Tijarat Account

This is a chequing account deposit product especially designed to cater the needs of business
Individuals as well as Business entities including Partnerships, Limited / Unlimited Companies,
Not for Profit organizations, Trusts and any other business oriented government / Semi
government entity.
● This is a Non-profit bearing account with many value added features on maintaining monthly
average balance of Rs.25,000/- and over.
● Free online, IBFT Facility.
● ATM/Over the Counter Cash Withdrawal Insurance upto Rs.25,000/- per day.
● Business Assets Insurance up to Rs.1 million
● Free ATM/Debit Card ( Issuance is free and for subsequent years, if the annual average balance
is Rs. 25,000/- then NIL charges , otherwise as per SOC )
● Free issuance of Cheque Books (no limit).
● Free Locker facility (small & medium) subject to availability & on maintaining annual average
balance of Rs. 1,000,000/- and above. However, Key Deposit to be taken irrespective of
maintaining annual average balance of Rs. 1,000,000/- and above.
● Rs.5/- Flat for issuance of MT/TT.
● Free issuance of DD/PO/CDR.
● Free Collection of OBC up to thrice of last month’s average balance.

BOP Salary Plus Account

This is a current chequing account product which can be opened by any salaried individual who
is working for an organization that is maintaining its salary disbursement account with BOP.

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● The main focus is on employees of govt/semi govt organizations, their allied corporations,
autonomous bodies and private sector entities
● This is a Non-profit bearing account
● Free Issuance of 1st ATM/Master Debit Card
● Free Online Transfer Facility (up to 3 Gross Salaries in a Month)
● Free Collection of Outstation Cheques (up to 3 Gross Salaries in a Month)
● Free Life Insurance of Rs.500,000/- on maintaining Minimum Monthly Balance of Rs.50,000/-
(terms, conditions & exclusions of insurance company will apply)
● Consumer Loan Facility on Attractive Terms.
● Option to avail salary loan (terms and conditions apply)

BOP Youth Education Account

This is a current chequing account product especially designed for young students studying in
schools, colleges and universities with additional feature of Free of Cost Education Insurance
Coverage on maintaining Minimum Monthly Average Balance of Rs.100,000/-.
● The product is especially designed for students attending any kind of educational institution.
● This is a Non-profit bearing account.
● Students up to age of 30 years will be allowed to open the account in this scheme. If the age of
student is below 18 years, minor/guardian account will be opened and new/normal YEA account
will be opened upon submission of CNIC of the student, as per existing procedure.
● Account can only be opened in Minor/Guardian and Student categories. Joint Accounts are not
permitted.
● There is no minimum balance limit hence account maintaining charges will not be applicable.
● Free of cost ATM/Master Debit Card (issuance & subsequent renewals).
● Issuance of free of charges Payment Orders/ Demand Drafts favouring any Educational
Institution.
● The Student qualifying for education cover must be an account holder for at least One Calendar
Month.
● Student will be provided Insurance cover as long as he/she is less than 30 years of age or his/her
parent/guardian is in the age band of 18-60 years.
● Bank will provide free of cost education insurance cover to student amounting Rs.20,000/- per
month for 24 months in case of Natural Death and Permanent Total Disability of
Parent/Guardian (one person only), whose name has been reported to the bank at the time of
account opening.
● In case of Accidental Death, the insurance cover will be doubled to Rs.40,000/- per month for 24
months. Terms, conditions & exclusions of insurance company will apply.

PLS Saving Bank Account

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● This is a profit bearing chequing account product.

● The deposit product is available for all types of general public, govt/semi govt organizations,
companies, business entities etc who are eligible to open account as per bank’s criteria.
● The Account can be opened with an initial/minimum deposit as stipulated by the Bank from time
to time unless specifically exempted.
● Calculation of profit is on monthly average balance method.
● Payment of profit is on half yearly basis.
● Free e-banking facility to view account balance and statement of account is available.
● SMS Alert facility is available subject to payment of annual charges as per bank’s schedule of
charges.
● Free of Cost Utility Bills Deposit Facility through BOP ATM Network, BOP Phone Banking and
self service IVR system is available.

BOP Behtareen Munafa Account

This is a PLS Saving Bank deposit product for general public, govt/semi govt organizations,
companies, business entities etc who are eligible to open account as per bank’s criteria.
● This is a chequing account product.
● Calculation of profit is on monthly average balance basis.
● Profit payment is on monthly basis.
● Free complimentary issuance of first ATM/Debit Card.
BOP Young Lions Saving Account
This is a PLS Saving Bank deposit product which provides a disciplined method of savings to all
the children. The account will be opened with Parent/Guardian
● This is a chequing account product.
● It is available for all children less than the age of 18 years.
● Account will be opened as Minor account with Child (M)/Parent or Guardian (G).
● Calculation of profit is on monthly average balance basis.
● Payment of profit is on monthly basis.
● Free complimentary issuance of first Cheque Book of 25 leaves.
● Free complimentary issuance of first ATM/Debit Card.

BOP ASAAN Saving Account

Opening of a bank account is not an easy task nowadays. A long list of formalities is required to
open a bank account. The Bank of Punjab is now introducing a simplified account "BOP Asaan
Saving Account". This is a saving chequing account for low risk common people/individuals
who face difficulties in account opening due to strict requirements/formalities. These segments

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of society may include but are not limited to self-employed, pensioners, students, farmers,
women/housewives, young adult population, work force etc.
● This is a profit bearing account (normal PLS Saving Bank profit rate as declared from time to
time) with value added features.
● Account can be opened with a low as Rs.100/- initial amount.
● Account can be opened as individual, joint or minor type.
● Account can be opened with minimum formalities and on one pager account opening form.
● There is no minimum balance requirement.
● There are no Service Charges.
● The account will preferably be ATM/Debit Card based. However; cheque book may be issued as
per choice of the customer.
● Master Debit Card is subsidized at Rs.250/- (plus taxes) per annum for both issuance and
renewals.
● Online facility (within city/ Intercity) available as per SOC.
● Per Month Total Debit Limit is Rs.500,000/-
● Total Credit Balance limit is Rs.500,000/-
● Account can be converted into normal saving account after completion of remaining formalities
if later on, accountholder requires financial services for higher amounts than the above specified
limits.

BOP PLS Direct Pension Credit Account

This account is being opened in light with Supreme Court’s SUO MOTO notice ( in year 2007)
regarding problems being faced by the pensioners and its subsequent order that pension may be
disbursed through all branches of all the licensed banks in Pakistan. PDP is a chequing account
which can be opened by any individual/single pensioner. The type of account is PDP – PLS
Direct Pension Credit Account. Purpose of account opening will be specifically mentioned on the
AOF as “Direct Credit of Pension” only
● Copy of Pension Book mentioning monthly amount of pension and other particulars will also be
required along with other documents as required in case of individual accounts.
● Pensioner & Co-indemnifier will indemnifying the bank (on stamp paper) to the extent of six
month’s aggregate pension amount or authorize the bank to mark lien on his/her account up to
this amount either by depositing cash or by no withdrawal of monthly pension up to six
consecutive months.
● No fee or service charges for maintaining such account will be charged.

BOP Bai Misaal Term Deposit

This is a PLS Saving Bank deposit product available for general customers who are eligible to
invest as per bank’s criteria. The term account can be opened singly or jointly

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● This is a Fixed Deposit scheme

● Minimum amount of investment is Rs.100,000/-
● No limit for maximum amount
● Product is available in 1 and 2 years tenure
● Best profit rates being offered in the market
● Payment of profit is at Maturity along with principal
● Upto 90% Financing Facility as per bank’s policy in vogue

Agriculture Schemes
Our Strategic Business Plan identifies Agriculture as a priority sector. Agriculture is the base on
which the edifice of national economy is built and, needless to emphasize, also constitutes the
fulcrum for poverty alleviation, employment generation and over all prosperity of the farmer.
We have also recently launched Livestock Development initiatives, while our scheme for Fish
Farming too has gained great popularity and success.
● Kissan Dost Production Loan
● Kissan Dost Lease Finance Facility
● Kissan Dost Cold Storage Finance Facility
● Kissan Dost Green House Finance Scheme
● Kissan Dost Livestock Development Scheme

MARKETING FUNCTIONS
Marketing mix consists on product, price, place, promotion of company

1.Products:
Deposits Products
 Current Account
 Basic Banking Account
 Tijarat Account (LCY)
 Supreme Current Account (FCY)
Profit Loss Sharing Term Account
Profit and Loss sharing Term Accounts offered by Bank of Punjab are:

 Ziada Munafa Saving Account

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 PLS-Saving Profit plus Account

 Corporate Premium Account
 Supreme Saving Account (PLS)
 Supreme Saving Account (FCY)
 Corporate Premium Account
Consumer Finance
Types of consumer finance offered by Bank of Punjab are:
 Aasaih Loan
 Quick Cash
 Car Loan
 House Loan Small
 Cash Personal Loan
 BOP Motorcycle Loan

Commercial Finance
The Bank of Punjab offers following Commercial Financing Loans:
 Running Finance
 Cash Finance
 Demand Finance
 Auto Lease Financing Scheme
 Car Lease Financing Scheme
 Electronic Banking
Electronic Banking provides non-stop banking convenience, twenty four hours a day, seven days
a week.

 Visa Debit Card

 Internet Banking
 ATM Network
 BOP Quick pay
 Call Center

Trade Finance
Trade finance is a loan provided to the importers and exporters to make their transaction
effective. This enhances the global business. The Bank of Punjab makes some trade processing

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centers to cooperate the exporters and also to the importers in different cities of Pakistan such as
Lahore, Islamabad, Rawalpindi and Karachi.

2) Price:
Pricing is one of the four Ps of the marketing mix. The other three aspects are product,
promotion, and place. Price is the only revenue generating element amongst the 4ps, the rest
being cost centers. Bank of punjab commercial bank use different price strategy for different
products and service to Achieve the organization Financial goals for each product it uses
different strategy when any new product is lunched by the bop commercial bank the top
management of the organization must the see the marketing objective Before selecting a suitable
price for a product.
The more clear the company's objectives the more easily to set a price Following are the
possible pricing objectives
a) Survival
b) Maximum current profit,
c) Maximum market share,
d) Maximum market skimming

Following are the steps in setting price for a product:

1. Selecting the pricing objectives;
2. Determining the consumers' demand;
3. Estimating costs.
4.Analyzing the competitors' costs, prices and offers
5. Selecting a pricing method
6. Selecting the final price.
Bank of Punjab see the nature of product and charge price according to product if the product is
innovative it charge higher margin before launching the new product the top management must
see and analyze the demand of product and estimate its costs analyzing competition cost price
and offer and then choose a pricing strategy according to company objective bank has different
product and services each is based on its own target market and expectation toward the customer
price is only key which generate the revenue for the organization to achieve its financial

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objective and the success and failure of product and service is depend on the price strategy.

3) Distribution strategy:
Distribution strategy is also one of the elements of marketing mix. Distribution strategy means
where and how the company is distributing its products. For this purpose bank of Punjab has
more than 560 branches in all over the country. Where the employees of the bank will distribute
its products to customers. Bop is distributing its products with the help of its branches in whole
country.

4) Promotional strategy:

Promotion is a form of corporate communication that uses various methods to reach a targeted
audience with a certain message in order to achieve specific organizational objectives. Nearly all
organizations, whether for-profit or not-for-profit, in all types of industries, must engage in some
form of promotion. Bank of Punjab uses followings ways for promotion of its products

 Advertising
 Bill Boards
 Broachers
 Personal Selling
 Internet
 Social Media
 Public Relations
 Publicity
 Electronic Media Print Media

These are the ways by which bop is promoting its products to the market.

Human Resource Management Recruitment

1. Internal Recruitment
Yes BOP has the policies of internal recruitment when they are looking to fill the vacancies
through promotions.
Promotions
So far as existing employees are concerned, they are given the opportunity to work on higher
post that is lying vacant rather than hiring a new employee

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2. External recruitment
At Intermediate Level
At the intermediate level Triple As are hired by banks, these are additional administrative
assistants.
University Fresh Graduates and Masters
University graduates and masters are source of applicants for BOP. But it is to be considered
that Banks do not personally contact these Universities through sources but applicants have to
apply themselves for internships and jobs

Unemployed Masters and Graduates

Despite of this unemployed masters and graduates are also a source of applicants for BOP.
Unemployed masters and graduates are recruited through recruitment advertisements.
Military Personnel
So far as military personnel are concerned then these are usually army gun mans and just related
to security these solicited.
Competitive incentives
Mostly at the executive level, the competitive employees are welcomed from other Banks. But
this may take place at lower tier as it has been part of practice in bank.

Methods of Recruitment used in BOP. 

● Advertisements on newspaper and websites
● Through Internships

Advertisements
Advertisements are most common method of recruitment by the bank. These include websites
and news paperclip Package in this concern provides its services such as to draft, design and then
process the job advertisements that are then published in newspapers. It is also released on
website of IBP.

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Internships
Students are given the internship opportunities in the banks.

In BOP selection criteria varies depending upon the type of job such as when it is for
Cash officer post, then his education, competency, skills and abilities are more important, But
when it is for security guard, his experience, and personal characteristics take more importance.
But when is for executive level, then experience, qualification, skills and abilities, competencies
all of them assume the importance. So selection criteria vary depending upon what is actually
required for job. “Right person for right job” is the selection criteria for BOP. But the complete
selection process is discussed below and its main selection criteria is merit that involves passing
and clearing all the stages of selection such as pre-employment tests, group discussion, interview
and background investigation.

Screening
In BOP, the selection process starts with initial screening where those applicants that do not meet
the job’s specification and description are screened.

IBP Package includes as follows:

 Receive, Organize, Process CVs/ Job applications

 Replying to Questions.
 Making the list of eligible candidates
 Releasing the admit card
 Short listing of candidates
Interview
Type and Method of interviewing
The next phase is to call for interview those applicants that have passed the test. The interviews
involve both structured and unstructured pattern where not only job-related questions are asked
but also few general knowledge and other kind of questions are asked from applicants.

Board Interview
The type of interview that is in tradition of BOP is board interview in which representatives of
the bank and associated serving institutes usually take the interview.

“A senior level panel 2 from bank and 1 senior expert from IBP conducts the interview and
grades the participant”

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Background Investigation
In BOP the background investigation is done that is done by verification of educational back
ground from the universities. Also, from the record of police, their criminal record is also
checked. And also, previous employers are also contacted for the verification purposes. Personal
reference may be utilized for this purpose such as the contact number of two noble persons of
your area is asked for.

Appointment letters to candidates

Final results are send to respective bank where further short listing is done by the bank as per
their discretion. BOP then sends appointment letter directly to the addresses of the successful
candidat

Training and development
The newly hired employees generally starts as a clean slate on which nothing has yet been
written. Good training is an art. The training policy of the personnel department is different for
the New employee. Existing staff for the newly selected candidates it is compulsory for them to
get training There is a separate academy of the bank in Lahore, the Mall Branch which is called
the training institute, the following methods adopt in the training program,

Training Modes
On the job training is also provided with in these branches.

Onsite Training
Some banks and financial institutions demand that training programs should be held at their own
sites. In such a case IBP has to design the training programs after consulting with concerned
banks and objectives are also determined after mutual consultation. But BOP also facilities its
employees to attend the training workshops and seminars of IBP.

Methods Used to Provide the Training:

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 Multimedia and Lectures

 Role Playing

 Exercises.

 Simulation

 Internships

Multimedia and Lectures

The training is provided through lectures delivering them to employees and Multimedia and
Power point presentations are used to deliver them training lessons. “I also observed specimen of
Power point presentations and Window media player videos used to deliver the training lessons
to employees.” These were much similar to our VU teaching technique. Multimedia technique is
a traditionally used method in BOP to teach the training lessons.

Role Playing
Role playing is used in the sense that they may model their behavior according to the situation
encountered as how to react in any situation.

Exercises
In training the trainees are provided case and asked to solve this such as they are given
unbalanced balance sheets and asked to balance these Simulation “Training is provided in
simulated environment and it also follows the question and answers session.”

Internships
Internships are traditionally used method of on the job training.

Career Development.
Not any mentoring is seen and not any tuition is given related to this. But in case of problems
arising they can get coaching from respective superiors through emails from BOP email service.

Performance Appraisal and Management.

The performance appraisal of the staff is usually done through following three parties:
 Branch Manager
 Area Manager
 Regional chief Final appraisal result is declared by head Office.

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But there is exception for Credit officers Their appraisal is done by

 Unit Manager
 Then goes to General Manager
Employee Compensation and Benefits
Compensation to employees
Types of compensations: -
As direct financial compensation is considered these include following in their pay package
 Basic pay
 House allowances
 Medical allowances
 Utility allowances
 Conveyance allowances
 Bonuses
 Telephone Reimbursements

Compensation of Directors and Executives

 Fees
 Managerial Remuneration
 Bonuses
 Contribution to defined contribution Plan
 Rent and House maintenance
 Utilities
 Medical
 Other allowances

Bonuses
The bonuses are also given to employees on completion of targets in form of cash prizes.

Commission
BOP has just introduced the business development officers that will be paid commissions along
with other pay package items.

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Benefits
They also introduced some schemes for the benefit of employees in past such as employees plot
schemein past through this a lot of employees purchased the plots.

Life Insurance Schemes and Medical Insurance Schemes

The bank has also provided attractive group life insurance Schemes and Medical Insurance for
its staff.

FINANCIAL ANALYSIS

Ratio Analysis

.LIQUIDITY RATIOS
a) Current Ratio

Formula
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑅𝑎𝑡𝑖𝑜 =Current Assets/ Current Liabilities

Calculation
Items 2019 2018
Current Assets 847025629 696997128
Current Liabilities 814020619 669043529
Current Ratio 1.04 0.10

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current ratio

Category 4

0 0.2 0.4 0.6 0.8 1 1.2

2019 2018

Interpretation:
The current ratio for the year 2019 is 1.04 that is more favorable because of sufficient use of
resources. BOP has the ability to pay their short term current liabilities. Increase in this ratio
shows more favorable situation.

1. ACTIVITY RATIOS

a) Working Capital

Formula
𝑤𝑜𝑟𝑘𝑖𝑛𝑔 𝑐𝑎𝑝𝑖𝑡𝑎𝑙 = 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠 − 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
Calculation
Items 2019 2018
Current assets 847025629 696997128
Current liabilities 814020619 669043529
Working capital 33005010 27953599

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Interpretation
Net working capital of 2019 is more than 2018 that means firm has more money to spend.

2. SOLVENCY RATIOS

a) Debt ratio

Formula
𝐷𝑒𝑏𝑡 𝑅𝑎𝑡𝑖𝑜 = total liabilities / total assets∗ 100
Calculation
Items 2019 2018
Total liabilities 46866808 37875744
Total assets 869681837 714716413
Debt ratio 5.38 5.29

Debt ratio

5.24 5.26 5.28 5.3 5.32 5.34 5.36 5.38 5.4

2019 2018

Interpretation:
The analysis shows that the ratio of debt from 2018 to 2019 occurs change. Higher this ratio
means higher the financial risk so it’s a negative sign for bank.

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b) Time interest earned ratio

Formula
𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑐𝑜𝑣𝑒𝑟𝑎𝑔𝑒 𝑟𝑎𝑡𝑖𝑜 =EBIT/ Interest Expense
Calculation
Items 2019 2018
EBIT 14071981 12272044
Interest expense 54113537 26842449
Time Interest Earned 0.26 0.45
Ratio

2018
2019

0 0.5 1 1.5 2 2.5 3

Interpretation:
This ratio is decreasing because of increase in interest expense. It measures the ability of a firm
to meet its annual interest payments. It shows company ability to pay interest expenses. Its
increase shows a positive sign for bank.

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3. PROFITABILITY RATIOS

a. Gross Profit Margin

Formula
𝐺𝑟𝑜𝑠𝑠 𝑃𝑟𝑜𝑓𝑖𝑡 Margin =𝑔𝑟𝑜𝑠𝑠 𝑝𝑟𝑜𝑓𝑖𝑡 / 𝑠𝑎𝑙𝑒𝑠
Calculation
Items 2019 2018
Gross Profit 30810689 23820436
Sales 80961051 26842449
Gross Profit Margin 38.0 88.7

Gross profit margin

0 10 20 30 40 50 60 70 80 90 100

2019 2018

Interpretation:
Gross profit margin ratio is 38.0 %. Low gross profit margin ratio shows the bad impact on their
customers. Last year gross profit margin ratio is 88.7% because of decreased in interest
expensed.

b. Operating Profit Margin

Formula

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Operating profit margin= Operating profit / total sales

Calculation
Items 2019 2018
Operating profit 14071981 12272044
Sales 80961051 26842449
Operating profit margin 17.33 45.7

Operatin profit margin

0 5 10 15 20 25 30 35 40 45 50

2019 2018

c. Net Profit Margin

Formula
𝑛𝑒𝑡 𝑝𝑟𝑜𝑓𝑖𝑡 𝑚𝑎𝑟𝑔𝑖𝑛 =net profit / revenue

Calculation
Items 2019 2018
Net profit 8277550 7621378
Revenue 80961051 26842449

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Net Profit Margin 10.22 28.39

Net profit margin

0 5 10 15 20 25 30

2019 2018

Interpretation
Net Profit Margin gives us the net profit that the business is earning per dollar of sales. Net profit
margin ratio is 10.22% that is unfavorable situation for the company in 2019. Last year ratio is
28.39% because of increase in tax. low NPAT show bad impact on their customers.

4. Return on Investment

a) Return on Assets

Formula
𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐴𝑠𝑠𝑒𝑡𝑠 =𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒 / 𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠
Calculation
Items 2019 2018
Earnings available for 8277550 7621378
common stockholders
Total assets 869681837 714716413
Return on assets 9.51 0.01

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Return on assets

0 1 2 3 4 5 6 7 8 9 10

2019 2018

Interpretation:
Current return on assets ratio is 9.51%. This may have occurred because Square used more debt
financing in 2019 compared to 2018 which resulted in less interest cost and brought the Net
income high.

b) Return on Equity

Formula
𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐸𝑞𝑢𝑖𝑡𝑦 =𝑛𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒 / 𝑡𝑜𝑡𝑎𝑙 𝑒𝑞𝑢𝑖𝑡𝑦∗ 100

Calculation
Items 2019 2018
Net income 8277550 7621378
Total equity 822815029 676840669
Return on Equity 9.9 1.1

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Chart Title

0 2 4 6 8 10 12

2019 2018

Interpretation:
The return on equity ratio (ROE) measures how much the shareholders earned for their
investment in the company. The Return on Equity is 9.9% in 2019. Increasing in return on equity
ratio due to more efficient management is in utilizing its equity base and the better return is to
investor

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SWOT Analysis

“The overall evaluation of a company strengths, weaknesses, opportunities and threats is called
SWOT analysis.” In SWOT analysis the best strategies accomplish an organization’s mission by:

 Exploiting an organizations opportunities and strength.

 Neutralizing it threats.
 Avoiding or correcting its weakness.

Strength

 Firstly it is Supported by Punjab Government, or funded by the Punjab Government, it build

people trust
 BOP is doing well  in every facet of performance through clients focused policies to maximize
value and satisfaction as compare to other province bank
 Wide range of consumers financing, agriculture loans scheme as compare to others bank
 The BOP has employee energetic work ethics conducive to merit, integrity better then peers and
exceeding customers’ expectations as compare to other banks
 BOP in a strength because it have Government Deposit as compare to others
 BOP has opened all its branches at commercial areas so that the customers or clients face no
Problems in reaching to the bank. For example, liberty branch
 Not excellent but good facilities are given to employees
 It has hard working and customer orientated staff
 The bank also has started ATM facility in most of the branches 24 hours banking is now the
trend in Pakistan.
 Personal selling has key role in banking service. The officers of the Bank of Punjab go to the
potential customers to develop the business. By the relationship with customers, they achieve the
deposit targets.
 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.

Weakness
 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.

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 I observed during my internship that some of the employees were burdened with over work. So
think that the work should be distributed according to their post and capabilities.
 Biased selection of employees.
 The IT sector of BOP is not working satisfactory..
 There is no proper marketing planning to make plans for the new schemes and to promote the
Bank’s reputation as other banks are doing..
 Traditional approach Because BOP is still using old method for working and for documentation
 Biased selection of employees.
 Rate of interest on its various products have been reduced.
 The Bank of Punjab has less modern technology. Due to lack of modern technology, the bank’s
services are low and foreign banks have large market share. In this era modern technology is
very necessary for competitions.
 Salaries of the officers are less as compared to other private banks.

Opportunity
 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 Accounts’. These
accounts have their unique features. During the last three years, BOP deposits have 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.
 It can introduce many customer attracted schemes through proper planning.
 There is an opportunity for more businesses if the BOP offered credit cards.
 There is an opportunity for more businesses if the BOP opens its branches in foreign countries.
 The Bank has opportunity to use latest technology for providing good services to customers.
 The Bank has opportunity to expand the branch network all over the country, and it would be
able to develop business and can start many other schemes for investment.

Threats
 The salaries of the officers of the Bank of Punjab are less as compared to other private banks. It
may cause transfer of the experts from the Bank of Punjab to other banks.
 Expansion of newly establishment banks like Al-Falah Bank, Askari Commercial Bank, Allied
Bank etc. and their better performance may cause loss of the market share of the BOP

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 The Bank of Punjab is also forced to give loans on potential basis. Due to this the recovery of
such loans may become very difficult.
 Promotional activities of the BOP are not sufficient. Due this it may lose market share.
 BOP is facing a strong competition by its competitors, Business of all these Banks are growing at
very high pace

ANNUAL FINANCIAL STATEMENTS

STATEMENT OF FINANCIAL POSITION

As at December 31,2019

STATEMENT OF PROFIT AND LOSS ACCOUNT

For the year ended December 31, 2019

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Conclusion
As we know that internship is great tool for getting practical and professional knowledge. As you
have seen, I have done my internship in BOP branch at central model branch. I have learnt lot of
professional activities from this branch. I have worked in the various department, learnt
something new from each, explanation about tasks are available in training program Report
portion. After writing comprehensively report on BOP I have reached at this point, on some
aspects, BOP has strength over other banks as you have seen in the SWOT analysis.  But on the
other hand, during my stay at this branch and after write this report, I have found some issue
regarding BOP Promotion activities. BOP do not have a modern marketing concept as compare
to others, due to less participation in promotion activities BOP is facing low sales or low
deposit.  Presently now till BOP has adopting tradition activities, but BOP management cannot
know it is age of competitions.. On the other hand BOP needs a good supervision and leadership
because the role of supervisor is very difficult. It requires sound leadership skills and ability to
treat all employees fairly. BOP should teach your supervisors, managers to use positive
feedback. I have also observed BOP is not offering attractive salary to their employees as
compare to other banks. Salary is not a motivator for workers. But they do want to be paid
fairly.  BOP has to make sure that it has clear policies regarding to salaries and bonuses.

Recommendation
● I feel that BOP should increase more incentives, rewards and salary package for employees.
● Management should distribute work equally among different employees. Some of employees are
overburdened while some sections are overstaffed.
● Bank of Punjab should evolve a very serious management policy to attract multinational
corporations as its clients. This action if actualized would not only prove to be highly profit
generating, but it would also contribute a lot towards Bank of Punjab’s image building.
● Bank of Punjab needs to improve its website. More information relating to financial performance
of the bank should be available on the website.
● The Bank of Punjab should use the latest technology because the bank which can provide
speedy, accurate and standard services in the delivery of products, loans etc. to the customers
will be successful e.g. computerization, fax installation.
● Basically my suggestions focus on customer service that how a bank can maintain its
commitment to customer service while still moving to the highest technological level.

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References and Sources

● The first important thing is the discussions with the staff of the bank of Punjab.
● Surfing the website of the bank of Punjab (www.bop.com.pk)
● Reading the annual reports for 2019 of the bank.
● Sample internship reports from scribd.com
● http:://www.slideshare.net
● http://fp.brecorder.com/2017/03/20170310152686/
● http://www.studysols.pk/the-bank-of-punjab-bop-review/
● Surfing the website of pacra (www.pacra.com.pk)

“MAY ALLAH SHOWER HIS COUNTLESS BLESSINGS ON ENTIRE STAFF AND THE
WHOLE MANAGEMENT OF BANK.”

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