MAFE 21 06 Rimsha

Internship Report
Internship Report
On
Bank of Punjab
Submitted by: Rimsha Chaudhary MAFE-21-06

MSc. Accounting and Finance 2021-2023
Department of Commerce
Department of Commerce,
Bahauddin Zakariya University, Multan.
Bank of Punjab Page 1

Internship Report
Contents
ACKNOWLEDGMENT.............................................................................................................................4
BANKING HISTORY IN PAKISTAN.......................................................................................................4
EXECUTIVE SUMMARY.........................................................................................................................5
Section 1......................................................................................................................................................6
1.1. HISTORICAL BACKGROUND OF BOP......................................................................................6
1.2. THE BANK OF PUNJAB...............................................................................................................7
1.2.1. INTRODUCTION TO BRANCH................................................................................................7
1.2.2. MISSION.....................................................................................................................................8
1.2.3. VISION.......................................................................................................................................8
1.2.4. OUR CORE VALUES.................................................................................................................8
Our Customers:........................................................................................................................................8
Profitability:............................................................................................................................................8
Corporate Social Responsibility:.............................................................................................................8
Recognition And Reward:.......................................................................................................................8
Excellence:..............................................................................................................................................8
Integrity:..................................................................................................................................................8
Respect:...................................................................................................................................................9
Section 2......................................................................................................................................................9
2.1. SCOPE OF THE BANK..................................................................................................................9
2.2. MANAGEMENT OF BANK..........................................................................................................9
2.3. SYMBOL OF BOP..........................................................................................................................9
2.4. AWARDS & ACHIEVEMENTS..................................................................................................10
2.5. DEPARTMENTS AT BOP...........................................................................................................11
Section 3....................................................................................................................................................16
1st Week of Internship................................................................................................................................16
Types of Accounts:................................................................................................................................16
2nd Week of Internship.............................................................................................................................23
REMITTANCES...................................................................................................................................23
3rd week of Internship................................................................................................................................25

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CLEARING...........................................................................................................................................25
4th Week of Internship...............................................................................................................................28
I-ISSUANCCE OF CHEQUE BOOK...................................................................................................28
II-STANDING INSTRUCTIONS.........................................................................................................32
LOCKERS.............................................................................................................................................33
Section 4....................................................................................................................................................40
 RATIO ANALYSIS..........................................................................................................................40
 SWOT ANALYSIS...........................................................................................................................44
 MARKETING ANALYSIS:..............................................................................................................47
 RECOMMENDATIONS...................................................................................................................49
CONCLUSION.........................................................................................................................................51

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ACKNOWLEDGMENT
All praises to Allah, the most beneficent, the most merciful, the most forgiving,
the most generous, the controller of the hearts and gazes and all knowing of what
that is open and what is hidden. I praise Him with the praise that is eternal
throughout the Night and the Day.
It is will of Allah that my honorable teachers have guided us to get training about
banking technicalities and complete our tasks.
Consequently I have taken upon my unworthy shoulders the responsibility of
preparing Internship Report.
I feel highly indebted and grateful and consider it my duty to pay my thanks to:
ALLAH ALMIGHTY: for the guidance, strength and courage originating from
Him, in accomplishment of this job.
My respectable teachers.
Staff in branch, especially Sir Asif Shahzad (Branch manager), Sir Javad Iqbal
(Operational Manager) in Bank of Punjab for their important role in completion of
this task.
BANKING HISTORY IN PAKISTAN
At the time of Pakistan’s formation on 14th August 1947, there were adequate
banking services available in the forming areas. Before the formation of Pakistan,
there was nearly 3500 branches in Sub Continent, out of these 3500 branches, 1500
branches were existing in Pakistan’s territory. It was agreed, at the time of
formation of Pakistan, the Reserve Bank of India should continue its functions in
Pakistan territory until September 30, 1948 as the central bank of Pakistan. It was
also agreed that Indian currency notes would use as legal currency of Pakistan until
September 30, 1948.

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After the independence, the relationships between Pakistan and India were not
good. Mostly banking was in the land of Hindus and they were shifting their
offices and assets to India, which results the down fall of banking sector in
Pakistan. The number of banking offices in Pakistan reduced to 200 on June 30,
1948. Imperial bank of India who was agent of The Reserve bank of India, has
started closing down its branch network in Pakistan. For making essential payment
of Pakistan, Reserve bank of India refused to make advance money to Pakistan
which was a great trouble for economy of Pakistan. Pakistan’s share of Rs.75
billion was also held with Reserve bank of India. At the stage of hopeless state
affairs it was agreed between two countries the Indian central would serve Pakistan
as monitory authority till June 30, 1948.
EXECUTIVE SUMMARY
The Bank of Punjab was established in 1989 under the Punjab Bank Act 1989. It is
scheduled bank governed by State Bank of Pakistan. Its head office is situated in
Lahore. Presently, it has more than 300 branches network all over the Pakistan, but
it mainly concerned in Punjab province. Bank of Punjab has equity of Pakistan
Rupees 10.773 Billion as on 31st December 2011. Its deposit based was Rs.237.897
billion with aggregate advances of Rs. 127.130 billion as on 31st December 2011.
Bank secured a profit of Rs. 348 million as on 31st December 2011.
During my stay at Bank of Punjab, I got the opportunity to work in various

departments in Bank including operation, credits, account opening, clearing and
foreign trade. In operation department I noticed how banker's cheques are issued
and paid. Similarly in clearing department I observed that how cheques are cleared
and possible reasons of unpaid of cheques. I observed that account opening is a

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most crucial department in Banking. It referred as a gate of entrance in the bank.

The bank is advised to remain more vigilant by State Bank of Pakistan while
opening account in bank. The most important step is Know Your Customer and
Anti Money Laundering in account opening. In credit department, I tried to
understand all the financing products.
I find that since Bank of Punjab is considered as a government bank and its main
customer comes from public sector. I observed that customer service is not
compatible with private banks. Bank of Punjab is also for-behind in applying
modern techniques of information technology. Online system is not working
properly. Software used by bank is of old nature which was applied from 2001, it
required a great deal of up-gradation.
Finally Bank of Punjab should launch reforms for the improvements for customer
service and its operational system to remain competitive in banking sector.
Section 1
1.1. HISTORICAL BACKGROUND OF BOP
The Bank of Punjab started its functions on November 15, 1989 with the
inauguration of its first branch in Lahore. The bank of Punjab was given the status
of scheduled bank in 1994 and now is working as a commercial bank with almost
273 branches in Punjab. Its primary functions are accepting the deposits of the
people and lend it to the persons who are in need of finance for their business to
commence and enhance. It also deals with customer’s foreign currency, remittance,

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trade, industry and agriculture sections to provide better banking facilities to its
client.
The Bank of Punjab also provide and offers attractive rates and percentages of
profit on all kinds of deposits, investment, opening of foreign currency account and
handling the issues related to foreign exchange business like import & export and
remittances, financing, trade and industry for working capital requirements.
In 1990’s the bank has provided two major services to the nation on the national
scene of appearance of Bank of Punjab as a new bank.
(i) The saving base of economy has effectively enlarged and hence the
opportunities for investment have increased.
(ii) The services of the bank in fact of severe competition have improved
considerably so that now consumer are left with extensive choice to do or undo
their business relations with these banks keeping in view quality of their services.
1.2. THE BANK OF PUNJAB
1.2.1. INTRODUCTION TO BRANCH

The branch where I was appointed for my internship is located at Modal Town
Multan. This is a good opportunity for the branch to do business with such kind of
people there is also a great competitive environment is not easy to deal with.
Because all major banks have branches in same area.
During my internship, the branch has large number of staff. It has more than 20
employees ranking from branch manager to teller. Other than these officers there
are 8 employees ranging from security guard to sweeper.
The main reason of bank’s existence is to accept the deposits of people who have
surplus money and lend it to those who need it for their business.

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1.2.2. MISSION
Our mission is to provide the services that enable people and businesses to extend
themselves so they can reach new heights, fulfill their ambitions and achieve the
best that's on offer. We are determined to be a truly customer-driven business with
our customer knowledge and perception. We are committed to providing customer
satisfaction, evolving business integrity, and forming pride in the people.
1.2.3. VISION
Our aim is to deliver more & contribute to the prosperity of Pakistan with the
fortified pride in who we are and the passion for innovation.
1.2.4. OUR CORE VALUES

These are the values we celebrate
Our Customers:
As 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
Excellence:
In everything we do
Integrity:
In all our dealings

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Respect:
For our customers and each other
Section 2
2.1. SCOPE OF THE BANK
As bank of Punjab is a scheduled and commercial bank of Pakistan, it performs all

the functions which commercial banks do. It performs its functions in both areas of
resource mobilization, loans and investment. It is also providing the advances to
business, trade, industry, agriculture and seasonal business on soft terms to
enhance the performance of these sectors.
2.2. MANAGEMENT OF BANK
At the level of Decision-making, senior management of bank takes important

decisions regarding the human resource and all other kinds of essential decisions.
Senior management have rich experience in banking profession both domestic and
internationally.
Complete responsibilities of formulation of policies regarding management have
been placed under the law and board of directors.
2.3. SYMBOL OF BOP
The sun rising over the five curvy lines represents the dawn of the new hope of
progress and prosperity for the land of five rivers and all over the Pakistan. The

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main purpose of the cotton flowers and spikes of wheat in the symbol is to present
the fact that the economy of Punjab stands on its agriculture products especially
cotton & wheat.
2.4. AWARDS & ACHIEVEMENTS
 Excellence Award By The Central Board Of Revenue
The Central Board of Revenue presented "Excellence Award" to the Bank of

Punjab in recognition of the contribution made by the bank towards Government
exchequer.
 3rd Kissan Time Awards
In recognition of Bank's contribution in development and growth of agricultural

sector, the Bank honoured with "Top Bank for Agriculture Loans" and "Best Bank
Crop Insurance" under 3rd Kissan Time Awards year 2006.
 Best Corporate Report Award
Annual Report of the Bank for the year 2005 won 5th position for "The Best
Corporate Report Award" for the Financial sector, adjudicated jointly by the
Institute of Chartered Accountants of Pakistan and the Institute of Cost and
Management Accountants of Pakistan.
 16th Bolan Excellence Award
The Bank was awarded Best Bank Award under 15th Bolan Excellence Awards
distributed in 2006.
 Achievement Award

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The Lahore Chamber of Commerce & Industry (LCCI) awarded the Bank "LCCI
Achievement Award" 2006.
2.5. DEPARTMENTS AT BOP

ACCOUNT OPENING
Account opening is the first step to establish a professional relationship between

the customer and the bank. The Bank of Punjab is offering mainly two types of
accounts:
 Current Deposit Account
 Profit & Loss Sharing Account
The first condition for a customer, who wants to open an account with the bank of
Punjab, is introduction, which is preferably by the bank officers or any account
holder of the bank. The different categories of accounts that are available are as
under.
 Individual account
 Joint Account
 Partnership Account
 Limited Company Account
 Clubs, Society, Association, or Trust Account
 Foreign Currency Deposit
CLEARING DEPARTMENT

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Clearing is the for the most part important department of the bank performing
various functions.
Clearing House:
A clearinghouse is a group of the member banks, working under State Bank of

Pakistan and which is for the purposes of setting inter banks claims resulting from
spread of funds from one bank to another. The cheque’s/instruments of branch are
credited into the account of the customer.
REMITTANCE DEPARTMENT
Remittance is a key function of the bank. It is the transfer of money from one place
to another place. The need for transfer of funds is usually feel in commercial life
mainly and in everyday life commonly.
By proving this service to the customers the Bank of Punjab earns a lot of income
in the form of service charges.
The Bank of Punjab deals with the following type of remittances: -
Demand Draft (DD)
Mail Transfer (MT)
Telegraphic Transfer (TT)
Pay Order
ADVANCES / CREDIT DEPARTMENT
“Major source of bank’s Income”

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It is the loan function, which produces the major person of bank’s income, and as
such it is the major areas of professional banker’s concern and attention.
Principles while advancing
Basically there are five principles that must be duly observed while advancing
money to borrowers.
 Safety
 Liquidity
 Disposal
 Remuneration
 Suitability
Forms of Lending
Many there are two types of advances:
 Short-term (maturity within one year)
 Long term (maturity with the period of more than one year)
However they are further classified as:
 Running Finance
 Demand Finance
 Cash Finance
 Letter of Guarantee

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SERVICES AND BUSINESS PROCESS
1. SERVICES PROVIDED TO THE CUSTOMERS:
Following are the services provided to the customers.
 Deposits acceptance
 Granting loans
 Foreign exchange services transaction
 Utility services
 Facility of lockers
 Instant fund transfer service (SPEDFAX)
BOP gives special importance to the business that is earning fee or remuneration.
As part of diversification of the banks utility services, the collection of bills of
INSTAPHONE (mobile phone network) was added to existing collection
arrangements for WAPDA, SUI GAS, WASA, PTCL, and PAKTEL. By using
bank's extensive branch network, effort have been made to maximize the
exploitation of this source in view of its rich potential of yielding business and
deposit direct earning of commission
2. DEPOSIT SECTION:
In recent, borrowing funds from different sources has become an important

element of today business enterprise rather than carried out only with the capital of

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the owners. Borrowed funds of the bank are much greater than own capital and the
borrowing of banks is mostly in the form of deposits.
Deposits are lent out to different parties. The difference between the rate at which
deposits are borrowed and the rate at which these deposits are lent out to other
party is the profit margin of the bank. The more the difference of rate of borrowed
deposits and the lent out deposits, the more will be the profit margin of the bank.
The major function of all commercial banks is to collect the deposits. The purpose
of collecting these deposits is not to save them only but to accept these deposits as
debts. When deposits are accepted from customers, a relationship is established
between the bank and the customer, where as customer will be called as creditor
and bank will be a debtor. When the amount of deposit is received by the bank, he
becomes its owner but the amount owned would be paid back by the bank after a
specified period.
LIST OF PRODUCTS
N SCHEME/PRODUCT TENURE
o
01 BOP MUNAFA-HI-MUNAFA – III. PLS – TERM DEPOSIT
02 BOP BAI MISAAL TERM DEPOSIT PLS – TERM DEPOSIT
03 BOP PAHLAY MUNAFA DEPOSIT PLS – TERM DEPOSIT

SCHEME
04 BOP SENIOR CITIZEN TERM DEPOSIT PLS – TERM DEPOSIT
05 BOP KISSAN DOST TERM DEPOSIT PLS – TERM DEPOSIT
06 CORPORATE PREMIER TERM PLS – TERM DEPOSIT

ACCOUNT
07 BOP YOUNG LIONS SAVINGS PLS – Running Account

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ACCOUNT
08 BOP SENIOR CITIZENS SAVING PLS SB – Running Account
ACCOUNT.
09 BOP GHARAYLOO SAVING ACCOUNT. PLS SB – Running Account
10 BOP ZIADA MUNAFA SAVING PLS SB – Running Account
ACCOUNT.
11 BOP PLS SUPREME SAVING ACCOUNT. PLS SB – Running Account
12 BOP FCY SUPREME CURRENT & PLS FCY – Running Account
SAVING
ACCOUNT. US$, EURO & U.K. Pound
13 CORPORATE PREMIER ACCOUNT PLS– Running Account
14 BOP TIJARAT ACCOUNT. CD – Running Account
Section 3
1st Week of Internship

Types of Accounts:
Basically there are two types of accounts
 Term/Fixed Deposit Account
 Demand Deposit Account
1-OPENING AN ACCOUNT
The first requirement for opening an account is to fill the account opening form.
First of all the customer will state the address of branch where he is going to open

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his account. Then he will state the title of account in which he will state his name.
Then he will have to select that which account he is going to open whether he is
going to open.
o Individual account
o Joint, sole proprietorship
o Public Ltd.
o Private Ltd account
o Partnership
o Trust account
o Society/ club/ association
o Others
Then he will state his type of account which he is going to open
 Saving, current
 Term deposit
 Foreign currency account
Then he will state the suffix that is the number of the PKR currency.
AOF includes such clauses as,

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Name, father name, mother’s maiden name, marital status, date of birth, Gender,
NTN No that is optional, occupation, name of employer, job title, address of
employer, country of residence,, nationality, CNIC No, current residential address,
permanent address, Email Id, Fax No, Tel No, Mobile No etc.
Specimen Signature Card
Customer is required to fill two specimen signature cards. Each specimen signature
card has four blocks. Customer will give his signatures two times on each card..
II-TYPES OF ACCOUNT
 Individual account
 Salaried person account:
Branches may be required to open accounts for employees of their corporate

customers as employees of other organizations maintaining account
relationships with BOP. In each cases, branches shall make reasonable
efforts to confirm the employment details of an applicant. Single account is
an account that is operated by a single person. To open an account following
types of documents are required.
o CNIC
o Salary Slip
 Student Account
This is the account being operated by the student. Documents required are
o Fresh copy of latest ID Card of institute or letter from an institute

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 Minor Account
This is the account operated by the person of age less than 18 years. This
account remains active till the person is minor. When he reaches the age of
maturity, his account will automatically be terminated.
 Retired person account
He must have
o CNIC
o Proof of retirement
 Joint accounts
These are the accounts of two or more parties who are not partners,
executors, administrator’s and trustees. Common joint account is husband
and wife joint account. Parties must clearly mention the signing authority to
operate the account.
 Sole proprietorship account
This is the account of a businessman who is the only and the single owner of
the business. Account holder is solely responsible for profit and losses.
Documents required for this account are:
o CNIC of sole proprietor
o Sole proprietors declaration on personal capacity

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 Partnership account
It is the type of business in which many persons jointly invest in business

and share the profits and losses in pre described proportionate. The
documents required for that are, partnership deed containing information
o Name of all partners
o Partner’s power to instruct bank on financial matters & operation of

bank accounts.
o Dissolution of partnership
o Death of a partner
o AOF signed by all partners
o Authority letter in favor of person to operate the account
o SSC signed by all partner’s
o CNIC of all partner’s
o Attested copy of registration from registrar of firm
 Company’s account
AOF must be completed and supported by certified copies of delegating

board resolution together with any other documents like powers of attorney
authorizing that he has specified powers. Company may be public limited or
it may be private limited. The documents required for them are:
o CNIC of all the director’s or signatories other than director’s of

company
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o List of all director’s
o Certificate of incorporation
o Certificate of commencement of business
o Copy of MOA & AOA
o Board resolution for the type of account and the person authorized to
operate the account of company
 Society/ club/ association
Various professional’s bodies and societies are incorporated as companies,

and may not necessarily include the word “limited” in the company name.
The unincorporated clubs & societies which are not legal entities should at
least be registered with appropriate authorities.
The resolution passed by club committee must include authorization to

establish bank account and specify the signing power on the accounts.
These are the institutions for the social welfare of general public. Documents
required for them are:
o AOF
o Signature of all authorized signatories
o Signature of all authorized signatories on SSC
o Resolution by a government body to authorize any person to open an

account specifying the powers of authorized person

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o An undertaking signed by authorized person to inform the bank in

case of change taking place in the person authorized to operate the
account
 Trusts account
o AOF
o Signature of all authorized signatories on SSC
o Authorized copy of registered trust deed
o Resolution to authorize a person to operate the account
o List of trustees
o CNIC of all trustees
 Agent account
He is a person doing his business out of city and he nominates a certain

person to operate his business locally then that person is called an agent. The
agent can be authorized by the principal to open an account in his own name
to deal and manage the matters of the principal. This account can be opened
by obtaining the “powers of Attorney” from principal. Principal has the right
to cease this agent account whenever he realizes that the agent is not
managing the matters fairly. Following documents are required to open this
account
o Certified copy of powers of Attorney
o CNIC of agent

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 Government account
These are the accounts for any official authority like Finance Minister. Any
government school, Government hospital or any officer of Federal,
Provincial or Local Government.
Documents required for this account are:
 CNIC of minister or any other official
 Request of AO from Chief Secretary or secretary
 Gazette copy Attested by chief Secretary/secretary
2nd Week of Internship

REMITTANCES
Types of Customer’s Cheque’s:
 Bearer Cheque’s
Bearer cheques are the cheques that can be withdrawn by any party. The
account holder can withdraw the amount or he may refer any person for
payment can be made to the bearer of cheques. Bank requires the CNIC of
bearer and bearer has to sign on the back of cheques while presenting the
cheques with his CNIC. Then cashier while giving payment again request
the bearer to sign again on the back of the cheques to verify the signature of
the bearer. This type of cheque can be presented on the counter for payment
and is called open cheque.
 Order Cheque’s

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Order cheque is the type of open cheque that can be presented on the counter
for payment but in this type the payee is nominated or mentioned the word
“OR Bearer” is cancelled to eliminate its effect.
 Cross Cheque
It is the type of cheque that cannot be presented on the counter for cash
payment but cheques can be transferred the balance from the account holder
to the bearer or specified person. Person has to fill up the “Pay in slip” only.
Both the bearer and order cheques can be crossed.
 Types of Cross Cheques:
There are two types of cross cheques
o Simple crossing
o Special crossing
o Simple crossing
This is the type of crossing which is crossed on the face of the cheque
and state.
It means that amount can be transferred from the account of account

holder in the account.
o if we cross the cheque from the front and write:
Then still it will be the category of Simple Crossing.
o If we cross the cheque on the front side and write the words “& co
Then it means that Mr.A must have the company.

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 Special Crossing
It is the type of crossing in which the payee is strictly restricted for payment
is called Special Crossing.
This cheque is crossed on the front side ant the word “Account Payee Only”
is written
Then it means that the amount can be transferred in the account of

Mr.Ahmad even if the words or bearer is not cancelled.
It means that cheque can be paid to the specified person’s specified account.
It can be paid to any bearer even if the word “Or Bearer” has not been
cancelled.
3rd week of Internship

CLEARING
Clearing means to clear the cheque by making and receiving payments. This is the
case in which different banks clear the cheques drawn upon each other. There are
different types of clearing:
o Outward clearing
o Inward clearing
o Intercity clearing
o Local clearing
o Online clearing

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o Outward clearing
It is basically the clearing of the cheques deposited in our customer’s accounts

that customer’s of other banks have given to account holders of BOP.
Example: if person A has account in bank Alfalah and he has to pay Mr. B who
has account in BOP. Mr. A gives cheque of alfalah to Mr.B. Mr. B will deposit
this cheque at BOP. BOP puts three stamps on this cheque.
o Crossing stamp
o Payee’s account will be credited stamp
o Clearing stamp of the next day means they will be cleared on n next day
o BOP will credit the customer’s account.
At the same time Alfalah bank will pass entry:
Mr. A Account (DR) -------
State bank of Account (CR) ------
After receiving such an entry BOP will pass this entry:
State bank account (DR) ----------
Head office account (CR) ---------
Another entry will be:
Head office account (DR) ----------
B’s account (CR) ----------

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oInward Clearing
it refers to the clearing of all the cheques drawn upon our bank, in which
customer’s make payments to the account holder’s of other banks and the same
procedure is repeated as stated in the example of outward clearing.
Following types of stamps will be required:
o Verification stamp
o Posted stamp
Mr. B’s account (DR) -------
State bank account (CR) -------
Against it other bank whose customer’s account is going to be credited will pass
following entry:
State bank account (DR) --------
Head office account (CR) ----------
Another entry will be :
Head office account (DR) ----------
A’s account (CR) ---------
oLocal Clearing

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State bank has specified the region for local clearance. The area which lies
under clearing is from Kamonki to Gujrat. It includes many cities and towns
like Gakkhar, wazirabad, Daska etc.
oIntercity Clearing
This clearing is among the cities from Lahore to Jhelum is called intercity
clearing. It takes days for clearing unlike local clearing that takes one day for
clearing.
oSame Day Clearing
This is the clearing for the cheques of more than Rs: 5,00,000. In this type of
clearing the bank usually accepts the cheques for outward clearing upto10’O clock.
The bank informs NIFT about this special type of clearing called same day
clearing. NIFT has special clearing boys for the same day clearing. These boys
pass the cheques from other banks on the same day and NIFT credits BOP on the
same day. BOP gives the credit to the account on the customer on the same day.
Unlike other types of clearings BOP charges fee Rs: 200 to 300 for the same day.
4th Week of Internship

I-ISSUANCCE OF CHEQUE BOOK
We request for the issuance of cheque book from the customer in person or
through customer’s representatives. For new accounts cheque book requests are
to be obtained for. Record date on requisition slip.
 Verify the customer’s signature and sign as evidence on CRS.
 Check and ensure that there is no restriction on account that prevents the
issuance of cheque book.
 Supervision of system

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o Verify the details from the original source and the system
o Supervise the details on the system
o Keep the requisition slip on the pending folder up to the delivery of

cheque book to the customer by BSS (banking services supervisor)
 Receive cheque book
o Receive cheque book along with the “cheque serial range report” from
CBPC in sealed envelop
o Count each and every leaf of the cheque book and insure that none is
missing and the serial number is in order
o Verify the details from the cheque range report with the cheque
requisition. Any discrepancy must be immediately reported to CBPC
with the copy to head of centralized operations
o Cheque range report with the requisition slip will be filed at branch end
in order
o Copy of cheque range will also be used as cheque book delivery register
 Recovery of cheque book charges
Upon the receipt of cheque book from CBPC, BOP processes the transaction
to cover the cheque book charges from the customer, copy of cheque range
report will also be used as source document for recovery of charges.
 Cheque book report

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Cheque range report will be filed in date order and this report will be used
in place of cheque book acknowledgement/ delivery register.
 Delivery of cheque book to customer
o Customer signature must be verified on acknowledgement slip and on

range report against customer detail before delivery of cheque book
o Deliver the cheque book to customer after obtaining their signatures on

cheque book record as acknowledgement of receipt
o Update cheque boom delivery record i.e date of delivery to the

customers.
o Officer delivery the cheque books sign as evidence of delivery
 Recovery of cheque book to the representative
Receive request letter signed by the customer with the details of

representatives like name CNIC number or specimen signature duly attested
by the customer to deliver the cheque book
o Verify the customer signature on request
o Verify the CNIC details/ signature of representative
o Obtain signature on the delivery record (range report) against relevant

customer’s record
o Verify signature from the signature on authority letter
o Attach authority letter with cheque range report and file in date order
at branch end

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o Deliver cheque book
o Officer delivering the cheque book will sign as evidence of delivery
 Update the system
On receipt of acknowledgement slip input the serial number of cheque book in

account on the system and initials it.
 Supervision
o Supervise the serial number of cheque book on the system and initial as
supervisor on source and file
o Cheque book range report along with requisition will be filed in date
order at branch end
 Importance of Loose cheque
 Request CBPC for issuance of loose cheque book
 Cheque book will be prepared without account/ cheque series number

and dispatch to the respective branch by recording the details of cheque
leaves in stock register
 ATM Issuance
o ATM cards will be issued to saving ,current and other specific products
accounts
o ATM cards should only be linked to the account types/products like

savings, current, khazana, Azadi accounts.

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o ATM cards can also be issued to the joint account holders having either
survivor condition.
o ATM cards can also be issued to the accounts held by sole Proprietors by
giving the owners name as card title.
o ATM cards can only be issued to the Pak Rupee accounts.
 ATM Cards cannot be issued in following cases
o Any non personal account (companies, organization)
o Dormant, inoperative, blocked, restricted accounts
o Partnership accounts
o FCY accounts
o Non residence accounts
o Jointly operated accounts
o Mandate holders
II-STANDING INSTRUCTIONS
 Bank also acts as an agent on behalf of the customer and provides various
services.
 Instructions containing full details will be received in writing on the bank

standard format annexure SI.
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 Standing instructions handled by the bank will be subject to the charges if

any, prescribed in the schedule of charges.
 Bank shall maintain the record of standing instructions received.
 The customer’s signature should be duly verified from the signature of

AOF.
 Standing instructions must be maintained in SI diary showing complete

record.
 Improper handling of standing instructions can adversely affect the banks

reputation.
 For al manual SI following card format is used and details are recorded in
it.
 Procedure
 Received application for standing instructions
 Report the date of receipt
 Verify customer signature and sign as evidence
 Setup SI in standard bank application
 For manual management branch will maintain SI card
 On due date execution are recorded on SI card
 If branches are unable to execute the SI they should specify the reason
like

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 Insufficient balance in the account and bank is not liable to execute SI on

the next day when there is sufficient balance in the account
LOCKERS
Rental of Lockers:
 BOP advices customer about the locker availability i.e size and charges
of different lockers.
 Branch service officer gets locker form properly completed.
 BSO explains the rules and regulations governing the lease of lockers.
 He checks the documents if not in order, advice the customer and seeks
the clarification.
 If the documents are in order, then he approves the agreement and rental
of locker.
 He assigns the locker number and enters details in locker register.
 Then posts the entry in banking application for locker rental charges.
 Recover the sealed envelope of keys of lockers rented and hand over it to
the customer along with the rules and regulations governing the
operations of locker.
 Then obtains the acknowledgement from the customer that he has

received the keys.

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 Then accompanies the customer to locker the test keys and records in
locker operation register.

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Collection of Rentals:
 For the collection of rentals, debit the customer’s account at time of

allotment of locker and on the exact due date.
 Prepare the reminder of rental payment to the customer in case overdue 30

days, and place notice on locker as “Rent Due”.
 If the authority has been given to debit the account of customer, then he
supervises the transaction in banking application.
 After 6 months from the date of expiring rentals the customer will be
advised by certified courier that locker will be cut open.
 If still the reply is not received within three months, the approval from the
head office will be sought to cut off the locker for recovery and it will be
advertised in news paper.
 Locker will be cut open in the presence of at least 2 officers; one of them
must be Branch Manager.
 The content and copy of inventory will be retained to Head Office and
Compliance.
 Any valuable found in the area after the customer left the bank that will be
handed over to the Branch Manager to keep in safe custody for safe delivery
to owner/ customer.
 In case the customer wants to appoint the other person as a operator of

locker on his behalf then he will have to the authority letter to that person
along with the copy of CNIC of that person.

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 Partnership concerns and joint stock companies will have to specify the
person to have locker and to handle the operations of the lockers.
UTILITY BILLS
 This is in reference to SBP circular 03, whereby all branches of the banks
are directed to collect the utility bills of the customer for the following
companies:
o PTCL
o WAPDA
o SNGPL
o EDUCATIONAL INSTITUTES
 To provide this service BOP has developed software through which the
utility bills are paid.
 System provides the UB collections of all companies and will and will auto
adjust cash in hand account and utility company collection account.
 Branches are needed to transfer funds for the main accounts of utility
companies and zero the account on daily basis.
SERVICES:
Branches must ensure that:
 All branches of the bank will provide bill collection service over its counter
during normal counter hours.

Internship Report
 The collection branches of the bank will strictly follow the instruction of
head office and utility company, issued from time to time regarding Bill
collection.
 Branches must display a notice on notice board or main door showing that
all UB are accepted here during banking hours.
 Branches must ensure that adequate counters are available for UB

consumers to avoid long ques.
 Separate drop box should be available for Bill collection.
COLLECTION OF UTILITY BILLS:
 Branches are authorized to collect cash or cheque, pay order, demand draft
as a mode of payment for UB.
 Outstation cheques are not entertained.
 On receipt of UB for the payment at the bank counter teller will receive the
cash payment. Post transaction in UB software. Stamp both consumer’s
upper part and bank’s lower part, the copies cash received stamp indicating:
o Amount
o Date of payment
o Name of branch
o Signature of receiving officer.

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 In case of cheque drawn on BOP immediately posted through UB system

and on clearness the bill stamped as “cheque received utility bills stamp”
 In case of other bank cheque, pay order, demand draft, branches will affix
the stamp “provincial subject to realization of cheque” on the bills and
bank’s copy.
 Cheques will be processed under normal clearing in transit/ wash amount

and no entry will be passed in UBS.
 Next day, on the realization transit account will be debited and cash in hand
account will be credited manually. Immediately the teller will post that bill
in UBS.
 The clearing cheques will be reported after realization in a scroll on

realization date. If cheque is bounced, same will be handled as per normal
clearing return procedure.
 In case of domestic/ commercial bill where payment is made by consumer

after due date total amount of bill including late payment surcharge
mentioned against total amount due after due date shall be received by bank.
 In case of industrial bills bank will ensure that no payment is accepted after
due date given on the bill.
Dispatch of collection schedule:
At the close of business every day, scroll of utility bills collection received will be
granted from utility bills system, the format of which is as follows:
Scroll format
o Bank name (Bank of Punjab)

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o Branch name & code (Trust plaza 006)
o Date
o Utility company (e.g. WAPDA, PTCL)
S. no. Bill/ customer Bill Amount Bop reference

Remarks (if
no.
any)
One day of scroll and remains along with online advice should be sealed in
envelope and marked to:
Utility company service provider
(Address of utility company)
At its own expenses utility company service provider’s courier will pickup sealed
envelops on the day following the collection by the branch. If not branch will send
the sealed envelope to the local address of utility company through courier/ by
hand.
A copy of scroll acknowledgement by service provider courier must be retained by

branch from its record.
BOP collection should be reported, as nil position.
MONTHLY REPORTING
Bank statement:
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Collection branch will provide monthly statement of Collection Account to

Regional Accountant/ Utility Company nominated office of concerned regional
office as per arrangement.
Nil balance certificates:
All collection branches will provide nil balance certificates for collection amount
at the close of month to Utility Company Local Office address.
Section 4
 RATIO ANALYSIS
1-LIQUIDITY RATIO
“Liquidity ratios measure the ability of the unit to meet its short term
obligations.”
Name of ratios Result for Result for Favorable/

2019 2020 unfavorable
Current ratio 94% 96% Unfavorable
Absolute current 49% 46% Unfavorable

ratio
A- CURRENT RATIO
Current ratio is also known as working capital ratio. It is unfavorable for BOP
because there are not sufficient assets available to meet the current liabilities
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according to the rule thumb for current ratio i.e. 2:1. It shows the poor
management of utilization of resources.
B- ABSOLUTE LIQUID RATIO
Absolute liquid ratio relates to the cash, bank, and, marketable securities available
to meet the current liabilities. This ratio is also unfavorable for BOP. As it says,
that minimum 50% of these current assets should be there to meet the short term
liabilities. Absolute liquid ratio lays down very strict and exacting standard of
liquidity therefore; acceptable norm of this ratio is 50%.
II- PROFITABILITY RATIO
Name of ratios Result for Result for Favorable/

2019 2020 unfavorable
Return on Equity 3.23% 3.20% Unfavorable
Return on asset 0.53% 0.50% Unfavorable

Return on 47% 10% Unfavorable
operating fixed
asset
“It shows the overall effectiveness of management to utilize its resources to

generate profit.”
RETURN ON EQUITY
Return on equity for BOP is unfavorable because of loss in previous year.

Moreover, equity of BOP is increasing in current year. This is the reason of its
decrease.
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A- RETURN ON ASSET
Return on asset has decreased for BOP which is unfavorable. With the increase in
assets of the bank, the relevant profit should also be increased but it did not so.
Instead of profit there was loss and that is the reason for decrease in return on
asset.
B- RETURN ON OPERATING FIXED ASSET
Return on operating fixed assets has also been decreased because there is loss in
year 2011. On the other hand, there should be relevant increase in profit with the
increase in operating fixed asset. Only increase in asset is not enough. It shows the
poor management of utilization of resources to generate profit.
III- SOLVENCY RATIO
“Its sows the long-term debt paying ability.”
Name of ratios Result of 2019 Result of 2020 Favorable/

unfavorable
Debt ratio 0.96 times 0.95 times Favorable
Equity ratio 0.04 times 0.05 times Favorable
Debt to equity 25.11 times 25.06 times Favorable

ratio

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Fixed asset ratio 7.10 times 5.75 times Unfavorable
Debt ratio
Debt ratio tells about the assets invested by the outsiders. So, decrease in this
ratio is favorable which shows the amount contributed by the outsiders is being
decreased, which is a positive trend as it decreases the institute’s degree of
indebtedness.
A- Equity ratio
Equity ratio for BOP is increasing. This is favorable for shareholders as equity
increases, their share of profit and dividend also increases. This ratio provides a
cushion against using debt and leverage.
B- Debt to equity
Debt to equity ratio is being decreased which shows the positive trend for BOP.
As increase in debt is less than the increase in equity. The higher ratio gives
satisfaction to shareholder but reduce the satisfaction of investors.
C- Fixed asset ratio
This ratio established the relationship between the long term funds and fixed
assets. Its shows the negative trend because the net fixed asset are not enough
available to meet long term obligations.

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 SWOT ANALYSIS
SWOT analysis is a short form for strengths, weakness, opportunities, and threats.
It is an analysis of internal strengths and weakness of an organization as well as

external opportunities and threats. SWOT analysis affects the organizational
performance. The overall evaluation of a company strengths, weakness,
opportunities and threats is called SWOT analysis. An organization's mission is
accomplished by best strategies in SWOT analysis by:
 Taking advantage of organizations opportunities and strengths.
 Reducing effect of threats.
 By avoiding the weaknesses.
Organizations missions are used as a context and SWOT analysis is one of the
most important steps in formulating strategy; managers avoid weaknesses and
assess internal strengths.
STRENGTH:
 BOP bank officers are considered as the most able professionals in the
banking world. In my observation BOP officers interact with the customers
as they are their personal friends and used to solve their problems as their
own.

Internship Report
 The customer's perception for BOP is very high due to compassionate and
personalized services of the officers. Customers feel secure while dealing
with BOP and they also have trust.
 The branches of BOP are opened in commercial areas in order to save

customers from facing problems to reach the bank.
 The security system is very good in BOP.
 Employees are given with good facilities.
 Internal computer system in BOP is very reliable and easy to use. Every
information is computerized.
 There is properly maintained data.
 BOP is 51% owned by Punjab government. BOP has an asset base of Rs.
165 billion and total deposits of Rs. 138 billion.
 The management prepares a financial statement which shows the state of

affairs, cash flows, the result of operations of state of affairs, & equity
changes.
 BOP follows the timelines specified by SBP for implementation of

recommendations of Basel-II committee for risk management and
management.
 BOP is adopting measures to monitor and minimize risks that are related to
banking industry.
WEAKNESS:

Internship Report
 There is lack of proper internal control in BOP which is pointed by the

auditor in his review.
 BOP has number of products and services more than commercial banks but
any advertisement on electronic media is not given.
 During my internship, I observed that employees have a lot of burden of

work. The work should be distributed equally between the employees on the
basis of their capabilities and their post
 Selection of employees should be biased.
 There is a lot of concern of SBP on the bank's control that is the weakness of
BOP.
 Due to more influence of the government there is negative behavior of the

staff with the customer.
 Staff is not too much motivated due to no proper rewards or less

remuneration.
 There is no time management principle for customer care.
 There is lack of proper internal control.
 BOP has negative profitability every year as its director and presidents
played trick with the bank by involving themselves in a fraud of billion of
rupees.
OPPORTUNITIES:
 There can be a great increase in deposits of BOP by commencement of new

schemes.
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 There should be emphasis on e-banking.
 BOP should adopt the diversification, innovation and mission driven

approach which are keys to success.
 A number of financial schemes like special deposit accounts that have

unique features are introduced by BOP. In past few years, deposits of BOP
have been increased by 40%.
 Information technology is the future of this dynamic world. So BOP should

emphasize on it. Like other foreign banks, bank can design universal account
to enhance online facilities.
 BOP is satisfying customer needs. A number of products are introduced by

BOP especially in retail banking and customers are becoming more loyal to
the bank. And due to optimum prices and brand products, customers feel
secure and convenient.
THREATS:
 Credit crisis have an adverse affect on BOP.
 BOP is facing a strong competition by other banks as business is growing at

very high speed.
 Customers are lacking trust in BOP due to which deposit growth
 MARKETING ANALYSIS:

Internship Report
BOP has lack of promotional activities due to which marketing department is very
weak.
But recently print media advertising is started which will increase customer base
and helps in developing BOP's reliability.
BOP MARKETING MIX:
1. Product:
Products involved are Finance, customers, & agriculture.
2. Price:

Internship Report
Due to economic crisis price charged is high and the lending rate ranges from
18-19%. The whole banking system is under the influence of price factor. So it
is very important.
3. Promotion:
BOP is cutting down its cost by cutting off its advertising expenditures.
4. Place:
BOP does not involve middleman and sellers as it is selling its services and
products through its branches that are spread across the country.
MARKETS SERVED:
The following markets are served by the bank of Punjab.
Agriculture market:
 Corporate customers.
 Commercial customers that involves middle & low income group.
 Household customers that involves low & middle income group.
 RECOMMENDATIONS
Following are the recommendations that may be prove successful to the bank by
studying the organization and during internship.
 The main intention should be consciousness in the general public and should
launch a well planned advertising campaign to capture a considerable share
in the banking sector of the country.
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 The bank should have physical facilities like furniture, parking facilities for
their clients as these facilities play an important role in enhancing image of
the bank.
 BOP can attract intelligent and capable persons and professionals by making
the salaries and pays of officers compatible to other private banks.
 Expenses should be minimized by BOP.
 Hardworking employees who give extra-ordinary performance in their work

should be given special awards.
 BOP should do innovations and launch new products by keeping in mind

that what people want to have and what the banks are providing actually.
 There should be more concentration on advances rather than on investments.
 Such services and products should be launched by BOP in which there is no

need for the customers to come to the bank like telephone banking.
 Those banks are successful only which provides standard, accurate and
fastest services for the product and loan delivery to the customers. So BOP
should use latest and advance technology like fax and computerization.
 Authority should be given to management.
 MIS of BOP should be improved for delivery of information at time through

a network by connecting branches & regional offices to the head office.
 Loans should be given on merit and management of BOP should avoid all
political pressures.

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 At the time of staffing and selection of employees, BOP should prefer the
candidates with professional qualifications like C.A, MBA, and ACMA.
 While recruiting employees, interviews should be taken to check personality,

communication skills, and how much he is social.
 TH bank should make all possible efforts to save the bank from interruption
of provincial government.
 In order to convey the messages of employees to the authority, there should

be union of employees.
 BOP should provide facilities to the research scholars and make a policy to
provide accommodation to them who want to study the banking issues.
CONCLUSION
BOP is contributing more in the industrial progress and capital formation in the
whole country. As shown in financial analysis, it is revealed from the data that
bank is sharing major banking business of the country which is concerned with
bank's financial performance.
In addition, the schemes and policies are of great importance for the bank which
helps in trading & non trading growth.
Trade is facilitated by BOP both inside and outside of the country. BOP is
constantly showing incredible growth in all areas of the country and is remain on
the front position of modern financial institutions. However its growth of profit is
reduced due to stress on consolidation and controlled providing of loans. BOP has
uniform policies and going on efficiently. The employees are awarded with
compensation and other possible facilities for their hard work and best efficiency.

Internship Report
In all activities, BOP adopts merit policy. Administration planned to avoid all
issues, drawbacks and problems by comparing it with other banks. BOP has proper
and progressive management policies.
The devoted, motivated & passionate employees will soon bring the time when the
bank will touch the peak of success, progress & development. REFERENCES
Websites
www.google.com.pk
www.answer.com
www.bop.com.pk
Books consulted:
Principle of managerial finance
Financial management by Gitman
Brochures and pamphlets provided by bank
ANNEXURES

MAFE 21 06 Rimsha

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Internship Report

Submitted by: Rimsha Chaudhary MAFE-21-06

Bank of Punjab Page 1

Bank of Punjab Page 2

Bank of Punjab Page 3

BANKING HISTORY IN PAKISTAN

Bank of Punjab Page 4

During my stay at Bank of Punjab, I got the opportunity to work in various

Bank of Punjab Page 5

most crucial department in Banking. It referred as a gate of entrance in the bank.

1.1. HISTORICAL BACKGROUND OF BOP

Bank of Punjab Page 6

1.2. THE BANK OF PUNJAB

1.2.1. INTRODUCTION TO BRANCH

Bank of Punjab Page 7

1.2.4. OUR CORE VALUES

Corporate Social Responsibility:

Recognition And Reward:

Bank of Punjab Page 8

2.1. SCOPE OF THE BANK

As bank of Punjab is a scheduled and commercial bank of Pakistan, it performs all

2.2. MANAGEMENT OF BANK

At the level of Decision-making, senior management of bank takes important

2.3. SYMBOL OF BOP

Bank of Punjab Page 9

2.4. AWARDS & ACHIEVEMENTS

 Excellence Award By The Central Board Of Revenue

The Central Board of Revenue presented "Excellence Award" to the Bank of

 3rd Kissan Time Awards

In recognition of Bank's contribution in development and growth of agricultural

 Best Corporate Report Award

 16th Bolan Excellence Award

Bank of Punjab Page 10

2.5. DEPARTMENTS AT BOP

Account opening is the first step to establish a professional relationship between

 Current Deposit Account

 Profit & Loss Sharing Account

 Limited Company Account

 Clubs, Society, Association, or Trust Account

 Foreign Currency Deposit

Bank of Punjab Page 11

A clearinghouse is a group of the member banks, working under State Bank of

The Bank of Punjab deals with the following type of remittances: -

Demand Draft (DD)

Mail Transfer (MT)

Telegraphic Transfer (TT)

ADVANCES / CREDIT DEPARTMENT

“Major source of bank’s Income”

Bank of Punjab Page 12

Principles while advancing

Many there are two types of advances:

 Short-term (maturity within one year)

However they are further classified as:

Bank of Punjab Page 13

SERVICES AND BUSINESS PROCESS

1. SERVICES PROVIDED TO THE CUSTOMERS:

Following are the services provided to the customers.

 Foreign exchange services transaction

 Instant fund transfer service (SPEDFAX)

In recent, borrowing funds from different sources has become an important

Bank of Punjab Page 14

02 BOP BAI MISAAL TERM DEPOSIT PLS – TERM DEPOSIT

03 BOP PAHLAY MUNAFA DEPOSIT PLS – TERM DEPOSIT