Internship Report

Zarai Taraqiati Bank Limited

Submitted by:

Muhammad Salman Ashraf

BSBA-7th (B)

Reg. No: 04151513080

Session 2015-19

Supervised by:

Ms. Perkha

Quaid-I-Azam School of Management Sciences,

Quaid-I-Azam University, Islamabad

 Acknowledgement

First and main, I would love to specific my way to Allah due to His love and energy that

He has given to me to finish this logbook as my internship record. I do thank for His

blessings to my everyday lifestyles, precise health, healthy mind and correct thoughts.

I would like to express my gratitude to all my teachers for giving me type guidance and

supplying me a threat to paintings in this venture right through from the start of my

courses. I am also grateful to the Management of Zarai Tarqiati Bank Limited for

answering my every question concerning the system of business enterprise. I am obliged

to group of workers participants of ZTBL for the precious data supplied by way of them

within the respective fields, I am grateful for their cooperation throughout the period of

my assignment.

I perceive this possibility as a huge milestone in my career improvement. I will try to use

received talents and understanding inside the great possible way, and I will continue to

paintings on their improvement, on the way to achieve desired profession objectives.

 Executive Summary

Banking is one of the most essential and touchy commercial enterprise. This

document is set one of the leading agriculture financial institution of Pakistan referred to

as Zarai Taraqiati Bank Limited. ZTBL is one of the most important roles inside the

improvement of the agriculture area in Pakistan. On 14th December 2002, underneath the

ordinance of the agriculture development of Pakistan nineteen sixty one, ZTBL turned

into integrated as public restricted corporation. The financial institution serves its clients

in the form of its customized merchandise. It is providing both styles of services financial

and non-economic often to its customers of rural regions which is ready 68% populace of

Pakistan. The bank has Pakistan-huge network inside the form of 401 branches and is

serving spherical approximately half of of the million clients yearly.

This report briefly discusses the functioning of Finance department; the skills that

I have acquired tasks and projects that I have performed during my Six weeks (6-weeks)

of internship program.
 List of Abbreviations

Terms Abbreviations

ZTBL Zarai Taraqiati Bank Limited

ABP Agricultural Bank of Pakistan

SBP State Bank of Pakistan

BFRD Budgeting & Fund Reconciliation Department

ADBP Agricultural Development Bank of Pakistan

KSSL Kissan Support Services Limited

HRD Human Resource Development

FAD Finance and Accounts Division

CAD Central Accounts Department

HOAD Head Office Accounts Department

IBTU Intra Branch Transaction (Reconciliation) Unit

RRD Regulatory Reporting Department

BFRD Budget & Fund Reconciliation Department

 Table of Contents
CHAPTER 1: INTRODUCTION OF ORGANIZATION..............................................................1
Background...............................................................................................................................1
Vision statement....................................................................................................................3
Mission statement.................................................................................................................3
Products and Services...............................................................................................................4
Divisions of ZTBL.....................................................................................................................6
Finance and Accounts Division................................................................................................7
Classification of Finance and Accounts Division................................................................8
Central Accounts Department.................................................................................................9
Head Office Accounts Department........................................................................................10
CHAPTER 2: PERSONAL WORKING AND LEARNING EXPERIENCE...............................11
Introduction to Internship Experience..................................................................................11
Regulatory Reporting Department (Week-1st & 2nd)......................................................11
Employees Fund Department (Week-3rd & 4th).................................................................16
Budgeting Department (Week-5th & 6th)............................................................................20
CHAPTER 3: SWOT ANALYSIS...............................................................................................28
Strengths:................................................................................................................................28
Weaknesses:............................................................................................................................29
Opportunities:.........................................................................................................................30
Threats:...................................................................................................................................31
CHAPTER 4: FINDINGS & RECOMMENDATIONS...............................................................32
Findings...................................................................................................................................32
Recommendations...................................................................................................................32
Conclusion...............................................................................................................................33
Organizational Hierarchy......................................................................................................34
References....................................................................................................................................35
 1

CHAPTER 1: INTRODUCTION OF ORGANIZATION

Background

` The Zarai Taraqiati Bank Limited (ZTBL) formally known as Agricultural

Development Bank of Pakistan is a public sector largest monetary improvement group

with a huge network of 27 Zonal Offices, 09 Audit Zones and 492 branches in Pakistan

and making plans to make bigger its outreach to a huge client base and characteristic as a

possible industrial entity. (https://en.wikipedia.org/wiki/Zarai_Taraqiati_Bank_Limited)

About ZTBL

` Zarai Taraqiati Bank Limited (ZTBL) erstwhile Agricultural Development Bank

of Pakistan (ADBP) is the gold standard monetary organization geared closer to the

improvement of agriculture sector thru provision of monetary services and technical

knowhow. The restructuring of former ADBP is being finished with the goal to uplift the

agriculture and rural quarter by means of raising farm productivity, streamlining the

institutional credit score and increasing earnings generating ability of the farming

community.

History of ZTBL

It turned into considered after independence of Pakistan that the existing

institutional resources i.e. Taccavi and Cooperatives, have been insufficiently meeting the

credit score wishes of farmers. Need for status quo of a 3rd supply of agricultural credit
 2

score changed into essentially percolated so that you can fulfill the credit score

necessities of farmers now not handiest for Production but even for the development

purposes. Consequently, Agricultural Development Finance Corporation become

delivered into life in 1952 beneath a Central Act for the reason of expanding monetary

facilities and promoting the development and modernization of agriculture in Pakistan.

Subsequently in 1957, Agricultural Bank of Pakistan become installed. The Bank

superior each quick (for Production) and long term (for Development) loans. Both these

institutions had been merged collectively as Agricultural Development Bank of Pakistan

in February 18, 1961. As required under section three of the Agricultural Development

Bank of Pakistan (Reorganization and Conversion) Ordinance, 2002, Zarai Taraqiati

Bank Ltd changed into integrated as a public confined organization under the Companies

Ordinance, 1984 on October 23, 2002. On November 18, 2002, all the belongings.

(https://www.scribd.com/doc/39246294/Internship-report-on-ZTBL-by-mumtaz-Ali-

Hulio)

Reason to change ADBP to ZTBL

The restructuring of ADBP is executed to uplift the agriculture and rural area by

using elevating farm productiveness, streamlining the institutional credit and increasing

the earnings producing potential of the farming community.

The Federal Government has transformed the Agricultural Development Bank of

Pakistan (ADBP) into Zarai Taraqiati Bank Ltd (ZTBL) and the brand new challenge has

started its operations with instant effect.

 3

The company structure of ZTBL in hazard mitigating elements and organizational

top-quality mix stands ready to acclimatize with agriculture needs and to be a proactive

monetary group for monetary development and sustainable agriculture growth.

(https://www.scribd.com/doc/39246294/Internship-report-on-ZTBL-by-mumtaz-Ali-

Hulio)

KSSL Subsidiary of ZTBL

KSS Aim

To provide support staff to ZTBL & under takes its non-core

activities.

KSS Operation

Kissan Support Services operate under its Memorandum & Articles of Association.

Vision statement

• To develop and operate the ztbl as commercially viable bank with focus on rural

areas and agriculture finance by delivering the product and services at low

finances it serves the needs of the farmers. (https://www.ztbl.com.pk/about/)

Mission statement

• To play an effective role in the promotion of economic growth by enhancing the

availability of credit to the agriculture sector. Through reliable access to easy

financing, lending programs, products and services and to promote career

development opportunities for increasing professionalism, technical proficiencies

and training of employees. (https://www.ztbl.com.pk/about/)

 4

Restricting plan of ZTBL

The proscribing method activity regarding growth or contraction of organization’s

operations or modifications in its assets. The restructuring plan includes the following

factors:

1. Governance

The ZTBL set up and environment that facilities suitable governance and

accountability.

2. Systems

The ZTBL modernized operations via use of era, networking and communication

gear.

3. Business processes

The streamline products and handing over structures of ZTBL are to lessen

transaction fees, simplify operations and growing outreach.

4. Products and Services

ZTBL provide services and products that are financially precise for the human

beings to elevate their earnings and to growth their productiveness.

5. Human Recourse Development

Having a good HRD department ZTBL is grooming the standards and skills of

their employees and also strengthening the training capacity

 5

6. Information Technology

ZTBL introduced a new software and hardware system known as ERP to support

their management information system, and accounting system.

(https://www.scribd.com/doc/39000470/Internship-Report-on-ZTBL-Prepared-by-

Wasim-Uddin-Orakzai-Student-of-Finance-2010-KUST-2)

Nature of Business

Zarai Taraqiati Bank is to offers credit score to the farmers, together with hiring

and renting of something which it is able to increase way of mortgage and the supply for

ware hosing facilities of such terms and subjects to such situations as may be prescribed

via its rile to agriculturists for the reason of agriculture and to folks engaged in cottage

industries in rural regions and offer sustainable rural financing offerings, specifically to

small farmers. (https://www.scribd.com/doc/39000470/Internship-Report-on-ZTBL-

Prepared-by-Wasim-Uddin-Orakzai-Student-of-Finance-2010-KUST-2)

Types of Loans

Banks offer loans through various merchandise and schemes for short, medium

and long term depending upon the cash glide of the debtors. The bank offers unique

awareness and significance to fulfil the real and actual wishes of small farmers in terms

of manufacturing loans (fertilisers and seeds, pesticides and labour expenses and so on)

as well as for running capital purpose. The bank additionally gives development loans to

farming community like tractors, loans for hen and cattle, fisheries, plantation and
 6

irrigation schemes. (https://www.scribd.com/doc/39000470/Internship-Report-on-ZTBL-

Prepared-by-Wasim-Uddin-Orakzai-Student-of-Finance-2010-KUST-2)

Maximum credit limit

Maximum credit score restriction of loan is RS 1.00 million per borrower.

Security

The bank presents loans underneath agri-skip ebook gadget in addition to

collateral perfect to the financial institution. Simplification of mortgage documents is

accomplished a good way to facilitate the farmers. The financial institution has simplified

the mortgage documentation to be relevant for 3 years of loan intervals. The principal

loan documents which are presently being used inside the branches of banks are as

beneath software shape IB-& revised mortgage settlement-cum-guarantee charge creation

certificate/sanction mutation entered in the financial institution want sanction latter for

mortgage. (https://www.scribd.com/doc/39000470/Internship-Report-on-ZTBL-Prepared-

by-Wasim-Uddin-Orakzai-Student-of-Finance-2010-KUST-2)

ZTBL Services

 Supervised agriculture credit scheme

 Zarakhazi

 Sairab Pakistan Scheme

 Lockers facility
 7

Divisions of ZTBL

 President's Secretariat

 HR Division

 Finance & Account Division

 Credit Division

 Research & Planning

 Information System

 Operations

 Recovery & SAM

 Field Audit

 Legal & Vigilance

 Services

 Agriculture Technology

(https://www.scribd.com/doc/39000470/Internship-Report-on-ZTBL-Prepared-by-

Wasim-Uddin-Orakzai-Student-of-Finance-2010-KUST-2)

Finance and Accounts Division

I worked as internee in finance and accounts department.

Functions of the FAD

The main functions of the FAD are given as under:

 To provide a proactive monetary policy and timely strategic monetary making

plans and risk control.

 8

 To control the asset and liabilities of financial institution

 To oversee the inner processing of financial transactions Accounts, budgets,

and credit score of the bank.

 To reconcile the price range given to all zones and branches.

 Functions of FAD also involve monitoring and controlling the bank’s loan and

portfolios.

 The cash inflows and out flows are also managed by FAD.

 To maintain a books of debts.

 FAD additionally coordinate a business planning after which helps it,

budgeting and to formulate the budgeting estimates of revenue and capital

expenditure.

 To manage and then correcting the money owed of zones and braches.

 Develop the economic statements of zonal offices and braches, for you to

make financial selections.

 To put together yearly, half every year and quarterly financial statements and

its schedule for presentation to the Audit Committee and the BOD &

additionally to prepare annual capital adequacy ratio for certification via

external auditors.

 Finance and account division ensure that all collections are received and

financial obligations are met.

(https://www.scribd.com/doc/39246294/Internship-report-on-ZTBL-by-mumtaz-Ali-

Hulio)
 9

Classification of Finance and Accounts Division

In order to categorize the finance and money owed department of ZTBL, there are

four departments, which plays very crucial position in financial affairs and maintaining

the information of all of the transaction which are carried out through financial institution

zones and branches, guidance of debts, financial statements of the bank, distribute and to

reconcile price range of all zonal places of work and branches of the ZTBL Head Offices.

Finance and accounts department consist of four major departments and their sub

departments/ sub units.

1. Central Accounts Department (CAD)

2. Head Office Accounts Department (HOAD)

3. Regulatory Reporting Department (RRD)

a) Regulatory & Internal Reporting Unit (RIRU)

b) Financial management Information Unit (FMISU)

4. Budget & Fund Reconciliation Department (BFRD)

a) Budget Planning Unit

b) Budget Analysis Unit

c) Treasury Unit

d) Fund Reconciliation Unit (FRU)

(https://www.scribd.com/doc/39000470/Internship-Report-on-ZTBL-Prepared-

by-Wasim-Uddin-Orakzai-Student-of-Finance-2010-KUST-2)
 10

Central Accounts Department

Introduction of CAD

Many accounting rules, tactics and methods are used inside the CAD. To present

the real economic function of the financial institution in economic statements; the

accountants formulate the accounting policies and strategies. This branch maintains the

actual accounts of the ZTBL. In this department the balance sheet and profit and loss

account is also prepared for monetary year, to get idea of profitability or loss and to make

monetary choice.

Objectives

• Formulate and hold accounting policies and methods manual consistent with

applicable accounting standards make sure dissemination and implementation

across the bank.

• Preparation of monetary statements as consistent with requirement of statue.

• Ensure proper accounting of property, liabilities, earnings & expenditure.

(https://www.scribd.com/doc/39246294/Internship-report-on-ZTBL-by-mumtaz-Ali-

Hulio)

Head Office Accounts Department

Introduction of H.O.A.D

The goal of head office debts branch is to preserve accounting functions of all

around the financial institution and to centralize the bills. In head office accounts branch

the particularly designed accounting software program and the COBOL administrative
 11

gadget is used for recording the transactions, financial statistics and to deduct tax from

salaries of the personnel.

Objectives

• Disbursement relating to Head Office.

• Pay-out salaries and allowances to Head Office employees.

• Maintenance of subsidiary ledgers of House Building, Conveyance, Rain and

Rent Advances, Suspense Accounts, Sundry Deposit Accounts, Items in Transit

Accounts and Bank reconciliation.

• Operations of Trust Funds of personnel and upkeep of Books of Accounts

including finalization of monetary statements.

• Investment of Trust Funds as per Trust deeds.

(https://www.scribd.com/doc/39246294/Internship-report-on-ZTBL-by-mumtaz-Ali-

Hulio)

CHAPTER 2: PERSONAL WORKING AND LEARNING

EXPERIENCE

Introduction to Internship Experience

I started my internship on 13th August, 2018 in finance department of Zarai

Taraqiati Bank Limited. During my Internship, I was given various tasks and

Assignments on weekly projects assigned by my supervisor. I completed my 6-weeks of

internship on 24th of September, 2018 and had exemplary experience.

 12

Personal Practical Work

Regulatory Reporting Department (Week-1st & 2nd)

• I was given information about Finance department of ZTBL.

• Sir arranged me orientation sessions with the Different departments associating

Finance. Complete discussions were made and a proper questioning Session was

conducted with every Manager of the regarding department.

• I started my internship with Regulatory Reporting Department of finance of

which Mr. Ali Abbas was the Vice President. They briefed me about how

functions are held there.

• Now regulatory reporting department is further divided into 2 units. 

a) Regulatory & internal reporting unit

b) Financial MIS unit

Introduction of RRD

Regulatory reporting branch sends reports to State Bank of Pakistan. The ZTBL

has to talk and post extraordinary returns to the SBP. These reports are dispatched by 2

approaches, one approaches is to apply the courier provider and second is to send on-line.

In this branch, I discovered to put together stability sheet, profits statement and a way to

find ratios. The Regulatory reporting branch essentially gathers, manner, analyze,

customize and offer with the statistics to numerous stakeholders to fulfill their unique

requirement. The principal purpose of the RRD is to compliance to the statutory reporting

requirements & makes periodic monetary reporting to the control. This branch gathers
 13

records from region workplaces, branches, ITSSD, CAD and so on. And reports the facts

to the SBP after consolidation. (Retrieved from internal training material)

Aims

 Preparation of economic plan for Bank’s credit limits, budget evaluate and their

utility.

 Financial Planning and Control for achievement of corporate goals.

Objectives

 To improve effectiveness in assembly statutory reporting responsibilities.

 To prompt and accurate evaluation to useful resource choice-making.

 To make periodic financial reporting to the control. (Retrieved from internal

training material)

Functions

 To redesign gadget of records shooting, its consolidation and subsequent

reporting asper regulatory requirements.

 To ensure implementation of adjustments in reporting necessities as amended

every now and then.

 From time to time and to design and implement internal reporting mechanism.

 To coordinate with distinct departments and zonal workplaces for collection of

requisite statistics and to Issuance of suggestions for guidance and consolidation

of statistics.
 14

 To arrange compliance of internal or outside audit commentary on regulatory

reviews.

 To carry out periodic assessment and evaluation of economic consequences and

it’s reporting to worried. (Retrieved from internal training material)

Quarterly

1. Statements under Section 4 & 12 of the Banking Co. Rules-1963:

 Statement Showing the Names and Address of the Board of Directors

 Statement Showing Address of the Principal Office of the Bank

 Statement Showing Names Designation and Specimen Signature of

Officers Authorized to Sign the Returns Banking Companies Ordinance

 Statement Showing Names of Bank Branches in Form-VIII

2. Quarterly Report of Condition (Part-A)

 Statement of NPL (Part-B)

 Statement of Capital Adequacy Ratio (Part-C)

3. Quarterly Statement of Position (RCOA)

4. Statement of Minimum Capital Requirement (MCR-Basel-II based)

Semi Annually

Schedule Bank Returns Namely:

 Liabilities & Assets of Scheduled Banks

 Classification of Deposits and Debits to Deposit Accounts

 15

 Classification of Advances

 Classification of Investment in Securities and Shares

 Classification of Bills Purchased and Discounted

Annually

 Statement Showing Computation of Rate of Service Charges

 Statement of Minimum Capital Requirement (MCR) (Audited) (Mr. Hamza,

personal communication, Aug 15, 2018)

Internal Reporting Unit

Following statements are being reported internally within the bank on weekly basis

 Cash position of branches

 Position of deposits

 Position of disbursement & recovery

(https://www.scribd.com/doc/39246294/Internship-report-on-ZTBL-by-mumtaz-

Ali-Hulio)

Functions of Internal Reporting Unit

 Preparation and well timed submission of regulatory reports to SBP.

 Ensure and implementation of alternate in reporting necessities as amended

from time to time.

 Facilitate Risk Management Department in finalizing Basel Accord related

report and its submission to SBP.

 16

 Coordinate with Financial MIS Unit, head office and filed offices for

collection of requisite of data not available on through existing system.

 Issuance of hints for instruction / consolidation of records via discipline

functionaries and head workplace.

 Arrange compliance of inner/ outside audit remark on regulatory reports/

administrative functions.

 Perform administrative capabilities for the Unit which include sanction of

leaves, authorization of tour programs, tour allowance and many others.

(Retrieved from internal training material)

Financial MIS Unit

Functions of Financial MIS unit

 Redesign the system of information taking pictures, its consolidation and

subsequent submission to the Regulatory and Internal Reporting Unit asper

regulatory necessities.

 Ensure and implementation of alternate in reporting requirements as amended

from time to time.

 Coordinate with exceptional departments and discipline officers for

collection of needful information.

 Issuance of suggestions for coaching/ consolidation of statistics via field

functionaries and head office.

 Assist R&IRU in wearing out periodic overview/ evaluation of statutory

reporting results and its reporting to the worried.

 17

 Ensure implementation of ERP through ISD in line with regulatory

reporting requirements.

 Perform every other job as and while assigned via controlling authority.

(https://www.scribd.com/doc/39246294/Internship-report-on-ZTBL-by-

mumtaz-Ali-Hulio)

Employees Fund Department (Week-3rd & 4th)

I started my internship with Employees Fund Department of finance of which Mr.

Muhammad Ali was the Vice President, briefed me about how functions are held there.

Employee Funds department worked as a unit under Accounts department but in

2015 ZTBL made it a separate department. Further Muhammad Ali Khan told me the functions

of this department.

In employee funds unit, I have learnt how as a fund the deductions are made in

employee’s salary. The primary characteristic of this unit is to hold the e-book of debts,

worker’s contributory funds together with contributory provident fund, and the funding of

surplus price range in accredited schemes.

Funds in ZTBL have 10 types of deductions which are:

• ZTBL Employees gain fund

• Benevolent fund (officials)

• Benevolent fund (personnel)

• General provident fund (officers)

• General provident fund (body of workers)

• Contributory provident fund

 18

• Pension fund

• Gratuity fund

• Employees provident fund

• Gratuity 2005 Fund believe (M. Ali, personal communication, Aug 27, 2018)

Functions of Employee Funds Department:

 Providing pension.

 Providing benevolent funds for officers and workers.

The important feature of EPF is to offer a retirement advantage for employees of the

company and personal sector who do not belong to any other pension or provident fund

in order for them to comfy a higher widespread of living at retirement."

In order to carry out the main aim of EPF, the Labour Department is concerned in

registering employers and personnel, imposing on delinquent employers and processing

housing loan guarantee programs and refund applications at the same time as the Central

Bank is concerned in accumulating monthly contributions from employers, making an

investment the price range, maintaining member’s accounts and making payments of

refunds on utility.

ZTBL has taken new steps and now they mainly focus on benevolent funds. The concept

of Pension is about to end in ZTBL. (M. Abbasi, personal communication, Aug 29, 2018)

Mainly I did following work there,

 Collect the advices being sent from all branches for clearance of pension and

benevolent funds.
 19

 Check the advice whether they are fake or not.

 Further passing the entry of that amount in the favour of that person.

 After the clearance is done using oracle software, and one copy is sent to Head of

Department containing all the entries.

 At last they print out two copies. One is sent to Head Branch and one is kept with

themselves.

Writing of Vouchers

Vouchers are the critical proof of all the transactions takes place inside the bank.

In the money owed department of ZTBL it is the lower back bone, each transaction of

financial institution with regards to cash required a voucher to be drawn in opposition to

it.

The vouchers are of three types: 

1) Debit Voucher (Receipt of Amount)

2) Credit Voucher (Payment) 

3) Transfer Voucher

Debit Voucher

Debit Voucher is used when financial institution received any quantity from all

of us. The example is of deposited amount with the aid of the depositors, the price of loan

by means of the loanee and so forth.

Credit Voucher

It is used for the charge of any amount by means of the bank to anyone. Like the

cheque drawn on financial institution, the charges of financial institution itself etc.

Transfer Voucher
 20

As the call indicates it's far used while the amount is needed to transfer from one

head to some other. The instance is the switch of utilities payments regularly occurring

by using the financial institution to the reputable utilities supplied organization (MEPCO,

PTCL and so on.). The switch of go back to the profits account of financial institution, it's

also used when the loan is sanctioned so it's miles required to transfer amount of

mortgage to the loanee account. Another use of transfer account is to accurate mistakes

within the ledger, for instance if an account is mistakenly debited in region of any other

account. So the transfer voucher can be written to credit score the primary account and

debit the second one to accurate the error.

In the stop of day all of the vouchers written at some stage in the day is required

to be write down inside the everyday Scroll (to be able to be mentioned afterward) and

then all of the vouchers of day is sewed after which sealed so that no new voucher can be

positioned or eliminated from the report. These vouchers used to store in file room and

that they hold piling up there. Every voucher has minimum copies, one for the patron and

one for the bank report. For easy popularity the vouchers are made of various colors.

 Debit Voucher (Have three copies and in white shade)

 Credit Voucher (Have two copies and in blue coloration)

 Transfer Voucher (Have two copies and in yellow shade)

Daily Transaction Scroll Daily transaction scroll is written by operations officer

every day in a bank. It is the report of all the coins inflows, outflows and transferred on a

selected day. Both cashier and operation officer writes his own scroll on the stop of day

after they have to near the cash. The closing balance in both those scrolls must be equal

otherwise there are a few transactions which have not been recorded efficiently both
 21

through the cashier or the operation officer. (H. Mehreen, personal communication, Sept

4, 2018)

Budgeting Department (Week-5th & 6th)

I started my internship with Budgeting of finance and the Vice President briefed me

about how department works. (A. Rehman, personal communication, Sept 10, 2018)

Introduction to Budgeting Department

This branch is also known as Budget & Fund Management Department. In BFRD

I even have learnt that the way to respond for utility of word received from department or

any department, and difficulty the fund or budget to the branch. This department keeps

finances and fund for branches and other departments. The BFRD receives the thought

and they switch fund and to receive the surplus fund shape the branches. The branches

ship their records to BFRD. This branch monitors their report which receives from zonal

places of work and branches as a way to satisfy the necessities. The major purpose of

budget is to devise, talk, inspire, manage and evaluate.

The greater clear, correct and well concept out budgets in the beginning the more likely

you'll be able to;

• To regulate plans, activities and spending as needed

• To spend cash value-efficiently.

• To reach the specific dreams you have set.

• To electricity the internal control device.

 22

• To examine, compile record and to control price range.

Moreover, the principle sources of budget are number one & secondary statistics, treasury

& treasury statistics, annual reviews and so on.

Aims

 Financial Planning and Control for achievement of corporate goals.

 Preparation of economic plan for Bank’s credit score limits, funds evaluate

and their utility.

Objectives

 Arrange good enough sources for preservation of adequate liquidity position

for green Credit disbursement, and well timed discharge of liabilities

operations of the Bank.

 Optimize return on assets of the Bank via efficient cash control and

investment activities.

Budget and Fund

Reconciliation
Department

Funds
Budget planning Budget analysis
Treasury unit reconciliation
unit unit
units
 23

 Develop a budget procedure which surely identifies problems, includes

planning, establishes responsibility elements and provides follow-up

reporting.

 Facilitate Operations Division in setting appropriate benchmark and

assessment criteria for the Bank’s various areas of activities.

 Generate consciousness to conserve resources commensurate with

responsibility.

 Effective monitoring, evaluation, analysis and reporting.

Functions

• To develop rules, strategies and requirements for price range planning and

analysis.

• To coordinate with administrative and governance organizations on the difficulty

referring to the finances.

• This department is primarily based at the strategic making plans of the financial

institution arranging price range estimates from all around the bank.

• To allocate of departmental code numbers with the change within the

organizational set up as per requirement.

• The Automation of finances process, upkeep of the statistics and acquiring

approval from the BOD for annual budget.

• To managing topics relating to the appropriation and re-appropriation of capital

and sales costs in addition to reserves for contingencies all through the 12 months.
 24

• To put together the facts concerning performance of branch-smart monetary

activities and their analysis in line with the information reflecting to the overall

performance.

• To monitor the prices for ensuring monetary discipline and taking remedial steps

for excess costs. (A. Rehman, personal communication, Sept 10, 2018)

Units of Budgeting Department

1. The Budget Planning Unit

This unit can develop departmental rules, techniques, price range making plans

technique and parameters and standards for financial management. This unit can talk with

administrative and governance organization on the budget technique and price range

troubles. (M. Amjad, personal communication, Sept 12, 2018)

 Develop Departmental policies, approaches and standards for monetary control.

 Develop price range planning process and parameters.

 Communicate with administrative and governance groups on the budget manner

and price range problems.

 Issuance of Budget calls memos.

 Compilation and processing records for coaching of annual price range.

 Arrange allocation of departmental code number with the exchange in

organizational set-up each time required.

 Automation of price range making method and records.

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 Finalization of price range and approval from BOD and its stream.

 Appropriation of capital and sales expenditure for additional budget from

contingency/unexpected reserves for brand spanking new schemes added

throughout the year.

 Special mission assigned with the aid of the higher government from time to time.

 Perform administrative functions for the Department including sanction of leaves,

approval of excursion programs, approval of tour allowance etc.

The capital and revenue expenditure is likewise suitable for extra budget from

contingency and unexpected reserves for new schemes introduced. But the general

expenditure can evaluates and reviews on quarterly basis against budget provision and its

submission to the Audit Committee. This unit now not best presents information and

evaluation to guide institutional planning and selection making however also offer help to

branch and divisions throughout the BDC.

2. The Budget Analysis Unit:

The most important goal of this unit is to put together, examine, coordinate and verify

facts concerning financial sports that reflecting the records concerning the performance

of the departments. This unit can provide records and analysis to support institutional

planning and decision-making. However, this unit can take administrative and financial

steps for excess expenditure. For this purpose this unit can speak with administrative and

governance companies. (M. Amjad, personal communication, Sept 14, 2018)

 Prepare, analyze, coordinate and investigate facts reflecting performance of

branch smart financial sports.

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 Monitoring fashion in prices for ensuring financial area.

 Take remedial administrative/financial steps for extra expenditure.

 Communicate with administrative and governance businesses.

 Develop assumptions and approach for the destiny price range cycle.

 Quarterly assessment/review of expenditure against price range provision and its

submission to Audit Committee of the Board.

 Provide statistics and analysis to aid institutional making plans and decision-

making.

 Provide steerage and aid to departments and divisions all through the budget

development cycle.

But the general expenditure can evaluates and critiques on quarterly basis towards price

range provision and its submission to the Audit Committee. This unit also develops

assumptions and method for the budget for future and to tracking developments in fees.

3. Treasury Unit:

The primary intention of this unit is to arrange budget, to hold data of the ZTBL and

operations of bank money owed with the SBP and industrial banks. The remittance of

finances is to be done to the needy branches on each day foundation. Moreover, price to

tractor manufacturing corporations the remittance of funds is to be accomplished to the

needy branches on weekly basis. (M. Amjad, personal communication, Sept 17, 2018)

 Arrangement of price range as and whilst required and maintaining report

referring to thereto.

 Operation of Bank bills with SBP and different commercial banks.

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 Remittance of price range to the needy branches on day by day foundation.

 Remittance of funds on weekly basis to the relevant branches for the charge to

tractor corporations and renovation/updating of report.

 Ensure that suitable cash stability is maintained in branches.

 Preparation of periodic assertion displaying movement of SBP loans and role of

Government Securities.

 Attend numerous audit and inspection reports touching on bills of the Bank.

 Maintenance/Monitoring of liquid coins reserves with SBP.

 Accounting/record retaining of cash inward/outward.

 Matters referring to Investment in securities/placement of surplus price range.

(Principal + Return).

 Coordination with SBP/industrial/internal and outside auditors with regards to the

topics of Treasury Unit.

 Preparations of various statements as required by way of ALCO. (Support feature

to ALCO regarding fund control).

 Coordination with Accounts Unit of CAD in finalization of quarterly, biannual

and annual accounts on problems concerning Treasury Unit.

The treasury unit can prepare periodic assertion displaying movement of the SBP loans

and role of presidency securities. The subjects referring to investment in securities and

site of surplus finances is likewise take care of by means of this unit for the cause to

preserve the record of cash inflows and outflows, deposit fee announcement & fixation of

cash restrict. This unit no longer handiest coordinates with debts unit in finalization of

quarterly, semiannually and annual money owed but additionally coordinate with the
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SBP, business banks and internal & external auditors with reference to the subjects of

treasury unit.

4. Funds Reconciliation Unit:

The predominant goal of this unit is reconcile the bank accounts that are being

maintained with business banks on the ZTBL Head Office. This unit follows the

accounting requirements of budget consisting of how the quantity is remitted and

obtained from branches and different transactions referring to the branch of the ZTBL

Head Office. (A. Ahmed, personal communication, Sept 18, 2018)

 Reconciliation of Bank Accounts being maintained with Commercial Banks.

 Accounting of funds remitted/acquired to/from branches and different transactions

referring to the Department.

 Responding of advices issued by means of the branches relating to un-claimed

deposits, SBP penalties etc.

 Preparation of daily coins position relating to remittance/Receipt of Funds to/from

branches.

 Monitoring and reconciliation of Bank money owed of branches with different

business Banks.

 Monitoring of extra coins with branches.

This unit can monitor the extra coins and reconciliation of bank accounts in branches

with different commercial banks. However, the education of daily cash role regarding
 29

remittance and receipt of budget from branches is also coping with by this unit. However,

the Fund Reconciliation Unit can respond to advices issued through the branches relating

to un-claimed deposits, the SBP consequences, to match statistics and so forth.

CHAPTER 3: SWOT ANALYSIS

ZTBL is basically an agricultural bank. And about 80% of its complete population at once or

indirectly relies upon agriculture.

The significance of agriculture has declined almost all different countries of the sector.

Their strain is on specific industries but agriculture is the fundamental industry in Pakistan. It

continues to be the major career of Pakistani humans. So following are the strengths of ZTBL.

Strengths:

 It gives the loan at inexpensive hobby fee as evaluate to the opposite banks.

 ZTBL gets its maximum of the funds from unique developmental institutions

which include authorities, ADP, SBP and many others. In case of dealing with

bad money owed the bank don’t go through plenty.

 It has all sorts of agricultural machines and generation so it is able to without

problems attain its aim that is improvement in agriculture.

 ZTBL has a personnel college to teach its employees in Islamabad, via right

education extra efficient team of employees may be made which will be beneficial

in tough banking opposition.

 Middle competency of the financial institution is its MCOs due to the fact ZTBL

is the most effective financial institution which has exceedingly experienced and
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well skilled MCOs who can without problems disburse loan and may achieve

healing target fast subsequently danger of awful money owed is decreased.

 Through distinct computer software statistics is kept and maintained. ZTBL has

no competitors in the market, some banks started out lending facility for business

but due to loss of green team of MCOs those banks have suffered.

 The farmers have trust on ZTBL.

 Audit sector performing its activity in a better way to rectify the mistakes and

fraud cases.

Weaknesses:

As we know every organization has weaknesses so following are the weaknesses of

ZTBL.

 Sometimes the lending is performed on political foundation. Due to this they have

an impact on of political leaders the healing machine is affected and will increase

bad money owed.

 The financial institution has no treasury department due to which finances are not

being properly utilized and the bank is lacking exquisite opportunity to earn

profit.

 Some cases of nepotism are regularly seen inside the financial institution when

loans are given with the aid of the branch managers to their household and fake

information is maintained.

 Most of the worker’s even senior managers are computer illiterate. They can’t

even take a look at their mails properly.

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 They are lacking of banking on line device.

Opportunities:

 By utilising the efficient team of MCOs ZTBL can make heavy amount of

deposits.

 The bank is can have an opportunity to set up its treasury department in Karachi

for full utilization of the funds and for maximum profit earning.

 ZTBL can reduce its expenditures by laying-off non performing employees.

 Its employees are highly trained for agri business development planning so it can

also operate in Middle East because Arabs are now focusing on agriculture.

 ZTBL can be a leading commercial bank by slightly changing its culture. It is

already equipped with highly experienced bank officers.

 ZTBL has the opportunity to be the leading bank of Pakistan due to CPEC

because CPEC is the biggest project ever started in Pakaistan. It is going to

connect villages with cities. So they can give loans to farmers as most of our

population relies on agriculture.

 ZTBL can also avail the opportunity by using modern information technology

tactics. They should hire skilled employees who knows the effective and efficient

ways to increase the productivity using modern technology.

Threats:

 As the financial system scenario could be very horrific and the Pakistan is facing

liquidity crunch that’s why ZTBL may also should face problem in getting

finance.
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 To overcome the liquidity problem the bank has begun running inside the

industrial banking markets however due to inefficient industrial banking practices

ZTBL may additionally need to face excessive scenario

 The climate of the earth is swiftly changing because of which heavy rain falls and

floods are frequently predicted. It is alarming scenario for ZTBL to perform

inside the marketplace being an agri-lender.

 The bank has very small earnings margin because it gets funds from SBP at 6%

and provide funds to farmers at eight% best.

 Agricultural plants rate is decreasing every 12 months.

CHAPTER 4: FINDINGS & RECOMMENDATIONS

Findings

During these six week internship programs I got a better experience of job environment

in public sector.

• The personnel working on the same role can also have one-of-a-kind degrees like

B.Sc., B.A and so forth. Which devaluate the scholars of BBA, MBA and other

distinctly qualifies group of workers. So there is a lack of professional personnel

in distinct departments.

• There isn't any job rotation for personnel which create job burning.

• The officers of RRD face many issues whilst making ready extraordinary

economic reports which consumes a variety of time.

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• The personnel aren't satisfies with the compensation bundle. They are simply

getting revel in and need to shift to every other agency that has strong position in

the agriculture finance market.

• The absenteeism and turnover rate of the employees is just too excessive that

results in the misunderstanding and conflicts in the bank.

• In ZTBL, there may be additionally a hassle of understaffing. This reasons

pointless work burden on employees and lowering their work efficiency.

Recommendations

• ZTBL should improve the Management System in each branch.

• They need to be worker and patron orientated.

• They have to introduce formal dressing in the business enterprise.

• Loaning method have to be less complicated and handy to the clients and easy

processing gadget.

• They should undertake the new agriculture era for the high stage manufacturing to

boom the GDP stage of the gas and bio gasoline.

• Political surroundings have to be eliminated in an effort to take excellent

selections and moves for the higher disbursement.

• ZTBL Head Office have to update the annual and manual reports.

Conclusion

While concluding my document, I would like to say that an internship document

generally covers one academic term. The predominant cause of the internship is to

develop and enhance the people’s instructional and profession education. I did my
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internship at ZTBL, operating inside the Finance and Accounts Division. My internship

desires protected completing the reviews assigned to me, mastering about the ZTBL,

that's public confined agency and additionally growing wonderful relationships with

employees. Some of my sports as an internee publish within the ZTBL is to coordinate

with personnel, operating on my giving duties, appearing complete attention and

preparation of my internship reports. So an internship is an opportunity to advantage

actual-life experience. Ideally, this allowed me to attempt out many elements of the task

and to apply talents learned in the school room environment. An internship is any

experience where students study through taking the responsible roles as employees in

organizations and observing and reflecting on what happens whilst they're inside the

place of work.
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Annexure

Organizational Hierarchy

Chairman

Board of Directors

Excutive Committee

Senior Executive Vice President

Executive Vice President

Vice President

Officer Grade I
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References

 https://www.ztbl.com.pk/economic-data/annual-report/

 http://www.ztbl.com.pk/

 https://www.scribd.com/doc/39000470/Internship-Report-on-ZTBL-Prepared-by-
Wasim-Uddin-Orakzai-Student-of-Finance-2010-KUST-2

 https://en.wikipedia.org/wiki/Zarai_Taraqiati_Bank_Limited

 https://www.scribd.com/doc/39246294/Internship-report-on-ZTBL-by-mumtaz-
Ali-Hulio
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EMAIL

Emails Time/Date Yes No

1st email September 4,2018 

2nd email September 22,2018 

3rd email September 23,2018 