REPORT ON BANK OF PUNJAB

Submitted to:
Sir Ahmad Tisman Pasha

Submitted by:
Muhammad Hamza Tariq Khan ADPM-20-15
Hafiz Mehr Ali ADPM-20-50
Uneeb-Ul-Hassan ADPM-20-18
Hafiz Abdur Rehman ADPM-20-21
Contents
Acknowledgement.................................................................................................................................1
Executive Summary:..............................................................................................................................2
Introduction:..........................................................................................................................................3
Objective of Bank of Punjab:.................................................................................................................3
Mission & Vision Statement:.................................................................................................................4
Vision:................................................................................................................................................4
Mission:.............................................................................................................................................4
Core Values:.......................................................................................................................................4
Awards & Credit Rating:........................................................................................................................5
Awards:..............................................................................................................................................5
Ratings:..............................................................................................................................................6
Credit management process:.................................................................................................................7
Products & services:..............................................................................................................................8
Accounts:...........................................................................................................................................8
Loan/Financing:.................................................................................................................................8
Types of Securities:..............................................................................................................................10
Credit process:.....................................................................................................................................11
CSR of Bank of Punjab:........................................................................................................................12
Competitors:........................................................................................................................................14
SWOT Analysis:....................................................................................................................................15
Strength:..........................................................................................................................................15
Weakness:.......................................................................................................................................15
Opportunities:.................................................................................................................................16
Threats:............................................................................................................................................16
Conclusion:..........................................................................................................................................17
 Acknowledgement

First of all, a great thanks to Almighty Allah, who enable me to complete this task and then I

am thankful to my Respected Teacher for providing such a friendly atmosphere and guideline

regarding my report. I own my gratitude and thankful to all those who helped me in preparing

this report by sharing there best of knowledge. It is due to endless efforts of my friends,

fellow members and especially, I am really very thankful to my beloved parents who have

always been a source of inspection for me.

1|Page
 Executive Summary:

The Bank of Punjab (BOP) is a well-established public sector bank in Pakistan with a long

history of providing financial services to its customers. Established in 1989, the bank has

grown over the years to become one of the leading banks in the country, with a network of

branches spread across Pakistan and a range of innovative products and services. In recent

years, the banking industry in Pakistan has experienced significant growth and competition,

and the Bank of Punjab has faced several challenges in maintaining its position as a leading

player.
Introduction:

The Bank of Punjab was founded by Tajammal Hussain and it functions as a Scheduled

Commercial Bank, with a network of over 587 branches in Major Business centers

throughout the country It is the seventh largest Commercial Bank of the Country. It provides

a wide range of banking services including deposit in Local Currency; client deposit in

foreign currency; Remittances; and advances to Business, Trade, Industry and Agriculture.

Currently, the Bank of Punjab is headed by Zafar Masood who joined

as President and CEO on April 16, 2020

Objective of Bank of 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, trade, industry and agriculture sections to provide

better banking facilities to its client.

Mission & Vision Statement:

Vision:

Your banking partner in creating value and improving lives

Mission:

Meet customer needs through innovative technology products/services to drive business growth while

promoting financial inclusion, diversity and prosperity across the nation with a motivated team

through culture of excellence and empathy

Core Values:

1. Prioritizes the Customers:

Customers are the priority of the Bank of Punjab.

2. CSR (Corporate Social-Responsibility):

The bank focuses on enriching the lives of individuals where the bank

operates. 

3. Profitability: 

For stakeholder’s prosperity, that allows the bank to improve, succeed, and

invest continuously.

4. Excellence:

In every action, the bank performs.

5. Reward & Recognition:

To encourage high-performing, talented and dedicated employees.

6. Respect:

The bank encourages respectful behavior for staff and customers.

7. Integrity:

Integrity is followed in all bank operations and dealings.

Awards & Credit Rating:

Awards:
 Lahore Qalandars won PSL 2022. BOP was the official bank partner of Lahore
Qalandars.
 The Bank of Punjab was awarded Best Bank for Small & Medium Businesses at the
Pakistan Banking Awards in December 2022.
 The Bank of Punjab was awarded Best Corporate Report Award of the year 2021 by
Institute of Chartered Accountants of Pakistan.
 The Bank of Punjab was bestowed international award for Pakistan’s Best Bank for
CSR by Asia money in Singapore.
 The Bank of Punjab was awarded Corporate Finance House of the Year by CFA
Society Pakistan in 2022.
 Awarded to BOP & NdcTech at the Global Fintech Innovation Awards in 2022.
 The Bank of Punjab was awarded Certificate of Merit for the year 2021 in the
category of Public Sector banks by South Asia Federation of Accountants on the
Annual Report of the bank.
 The Bank of Punjab was awarded Top Mid-Size Bank Award for Agriculture
Financing by the State Bank of Pakistan in 2022.
 BOP was awarded Number One Bank Award by J.P. Morgan against Highest Straight
Through Processing (STP). Rate of 96.12% achieved against Euro payments
processed in the year 2021.
 The Bank of Punjab was awarded Fastest Credit Card Launch across MENA in Edge
2022.
 The bank was awarded Power Deal of the Year award by the Asset-Triple A.
 The Bank of Punjab (BOP) has been given Top Bank Award under Kamyab Jawan
Program by the Honorable Prime Minister of Pakistan Mr. Imran Khan at the
“Kamyab Jawan Convention 2021” held at Jinnah Convention Center, Islamabad on
24 November 2021.
 In December 2020, the Prime Minister of Pakistan awarded trophy to the Bank of
Punjab for being the Top Performing Bank in Prime Minister’s Kamyab Jawan
Program (Youth Employment Scheme) Disbursement.
  The Bank of Punjab has been awarded Number one bank by J.P. Morgan Bank against
highest STP rate of 96.12% achieved against EUR payments processed in the year
2020.
 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.
 In recognition of Bank's contribution in development and growth of agricultural
sector, the Bank honored with "Top Bank for Agriculture Loans" and "Best Bank
Crop Insurance" under 3rd Kissan Time Awards year 2006.
 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.
 The Bank was awarded Best Bank Award under 15th Bolan Excellence Awards
distributed in 2006.
 The Lahore Chamber of Commerce & Industry (LCCI) awarded the Bank "LCCI
Achievement Award" 2006. 

Ratings:
• Long-term credit rating of "AA-" and short-term credit rating of "A1+" by the
Pakistan Credit Rating Agency (PACRA).

• Long-term credit rating of "AA-" and short-term credit rating of "A1+" by JCR-VIS
Credit Rating Company.

• Foreign Currency Long-term credit rating of "B" and Foreign Currency Short-term
credit rating of "B" by Fitch Ratings.
Credit management process:

Credit management is the process of deciding which customers to extend credit to and

evaluating those customers' creditworthiness over time. It involves setting credit limits for

customers, monitoring customer payments and collections, and assessing the risks associated

with extending credit to customers.

Credit management process of Bank of Punjab includes

1. Credit Division

2. Credit committee

Credit Division control over all credit operations like sanction of loans, Inland Bill

Purchased (IBP) and also keeps check over securities mortgage, hypothecating or pledge. It

also fixes the rate of mark-up and other decisions concerning with the credit.

Credit committee consists of senior officers; Branches send the credit proposal to head

office credit division. Credit committee approves it after making a thorough analysis. It also

prepares the policies regarding the sanctioning loan, monitor loans and credit, look after the

portfolio of the bank and define credit limits against specified securities. 
Products & services:

Accounts:
Bank of Punjab offers a wide range of accounts & each account has its own benefits & restrictions.

The accounts that are offered by Bank of Punjab are:

1. BOP Tijarat Account

2. BOP Life Current Account

3. BOP Salary Plus Account

4. BOP Youth Education Account

5. BOP Asaan Current Account

6. BOP Asaan Remittance Current Account

7. BOP Kissan Dost Current Account

8. BOP Behtareen Munafa Account

9. Corporate Premium Account

10. BOP Asaan Saving Account

11. Kissan Dost Saving Account

Loan/Financing:

In banking, a loan is a financial product that allows a borrower to receive a specific amount

of money from a lender with the understanding that the borrower will repay the loan over

time with interest.

There are multiple types of loans that are being offered by Bank of Punjab. Some of the loans
that are being offered upon the requirements of customers are as follows

Retail loans:

1. Car Lease
 2. Apna Ghar House Financing

3. Apna Ghar Low-Cost Housing Finance

4. BOP Smart Advance Cash

5. Personal Loan

6. BOP Solar loan

7. Apna Rozgar

8. Women on wheel

Agriculture loans:

1. Kissan Dost Production Loan

2. BOP Tractor Lease

3. Kissan Dost Cold Storage Finance Facility

4. Kissan Dost Livestock Development Scheme

5. BOP Agri Vehicle Leasing

6. Financing Facility for Storage of Agriculture Produce (FFSAP)

Types of Securities:

Bank of Punjab may accept different types of securities against loans depending on the nature

of the loan and the risk involved. Some of the common types of securities that Bank of

Punjab may accept against loans are:

1. Immovable Property:

This includes land, buildings, and other real estate properties, which can be

mortgaged as collateral against the loan. The bank may conduct a valuation of the

property before accepting it as collateral.

2. Securities:

Bank of Punjab may also accept securities such as shares, bonds, and

debentures as collateral for loans. The value of the securities pledged will be

considered while determining the loan amount.

3. Gold:

Bank of Punjab may also accept gold jewelry, coins, or bars as collateral for

loans. The bank may conduct a valuation of the gold and determine the loan amount

based on the market value of gold

4. Real Estate:

These are physical properties such as land, buildings, and apartments that can

be pledged as collateral for loans or other credit facilities.

5. Government Securities:

These are securities issued by the government, such as Treasury Bills, Bonds,

and Notes, and are considered to be low-risk investments.

Credit process:
The credit management process of Bank of Punjab involves the following steps:

1. Application:

The customer applies for a loan or credit facility and submits the necessary

documents and information.

2. Evaluation:

The bank evaluates the customer's creditworthiness by analyzing factors such

as their credit history, income, employment status, and collateral (if any).

3. Approval:

If the customer meets the bank's criteria, the loan or credit facility is approved.

The terms and conditions of the loan, such as the interest rate, repayment schedule,

and security requirements, are established.

4. Disbursement:

The bank disburses the loan amount or credit facility to the customer.

5. Monitoring:

The bank monitors the customer's creditworthiness and financial performance

throughout the term of the loan. This includes reviewing their credit report and

financial statements, as well as conducting site visits (if applicable) to ensure that the

loan is being used as intended.

6. Collection:

The bank collects the loan payments from the customer according to the

agreed-upon schedule. If the customer defaults on their payments, the bank may take

legal action to recover the amount owed.

7. Recovery:
 In the event of a default, the bank may attempt to recover the outstanding amount

through various means, such as selling collateral or pursuing legal action.

CSR of Bank of Punjab:

CSR stands for Corporate Social Responsibility, which refers to the actions and policies of

a company, including banks, that aim to have a positive impact on society and the

environment.

In the case of banks, CSR involves activities that go beyond their traditional role of financial

intermediation and profit-making, and instead focus on promoting sustainable development

and contributing to the well-being of their stakeholders. This can include initiatives such as

supporting education, healthcare, environmental sustainability, and community development

programs.

The Bank of Punjab (BOP) is a market leader in Corporate Social Responsibility (CSR);

spearheading numerous social and public welfare initiatives. As a testament to BOP’s efforts,

Asiamoney – a prestigious international organization has awarded BOP “Best Bank for CSR

in Pakistan” award for the year 2022.

Some of the initiatives carried on by Bank of Punjab for the welfare of Society are as follows:

1. During Covid-19:

BOP’s CSR strategy is to ensure that growth in its business goes hand in hand

with contributions to society, strengthening financial inclusion and changing the lives

of people across the country. That was particularly so during the waves of Covid-19

that have shaken the economy since 2020. BOP ramped up online and mobile

offerings to ensure business continuity. It implemented emergency protocols for

frontline staff, while also ensuring that all branches remained at least minimally
 operational throughout the pandemic. Staff members working during the pandemic

received cash bonus and hardship pay.

2. Collaboration with Punjab Social Protection Authority:

The Bank continue to facilitate Government of Punjab (GOPb) in

disbursement of financial assistance to thousands of needy persons under various

initiatives of Punjab Social Protection Authority through its specially designed

Branchless banking operations and Cash Management Services.

3. Chief Minister Relief Fund:

The recent devastating rains and flash floods have inundated vast areas across

Pakistan. BOP is once again at the forefront to carrying out flood relief activities. The

Bank contributed Rupees 10 million to the Chief Minister’s Flood Relief Fund and

has been actively collecting relief funds by opening maximum number of channels for

customers, including branches, ATMs, Mobile App & Internet Banking, Raast, local

and international credit cards, foreign inward remittances through banking

channels/exchange companies and Roshan Samaaji Khidmat. BOP has also been

reaching out to its own customers through SMS messages on a daily basis for the

cause of collecting donations in CM Punjab, Baluchistan, and Prime Minister’s flood

relief accounts and over Rs. 2 billion have been collected hitherto.

Furthermore, BOP will be the first bank that would be providing support to the farmers

through suspension of Principal and Markup of Agri loans up to 12-months in the

government-declared calamity-affected areas. The farmers (BOP customers) can avail this

facility by simply submitting a written request to their respective branches. There will be no

minimum or maximum amount of loan benchmark to avail this scheme.

These initiatives are a continuation of BOP’s broader mission – consistent with its motto:

“#harfardkakhayal”.
Competitors:
The Bank of Punjab (BOP) is one of the leading commercial banks in Pakistan, and it faces

competition from several other banks operating in the country. Here are some of the main

competitors of Bank of Punjab in Pakistan:

1. Habib Bank Limited (HBL):

HBL is the largest bank in Pakistan in terms of assets and has a strong

presence across the country. It offers a wide range of products and services, including

retail banking, corporate banking, investment banking, and Islamic banking.

2. National Bank of Pakistan (NBP):

NBP is a state-owned bank and the second-largest bank in Pakistan in

terms of assets. It has a large network of branches across the country and offers a

range of financial products and services to both retail and corporate customers.

3. MCB Bank Limited:

MCB is a leading private sector bank in Pakistan and has a strong

presence in both retail and corporate banking. It offers a range of products and

services, including consumer banking, commercial banking, and Islamic banking.

4. United Bank Limited (UBL):

UBL is one of the largest banks in Pakistan in terms of assets and has a

large network of branches across the country. It offers a range of financial products

and services, including retail banking, corporate banking, and Islamic banking.

5. Allied Bank Limited (ABL):

ABL is one of the oldest banks in Pakistan and has a strong presence

across the country. It offers a range of financial products and services, including

consumer banking, commercial banking, and Islamic banking.

These are just a few examples of the many competitors of Bank of Punjab in Pakistan. Other

notable banks include

 Askari Bank

 Faysal Bank

 Standard Chartered Bank.

SWOT Analysis:
SWOT analysis is a strategic planning tool used to evaluate the

 Strengths

 Weaknesses

 opportunities, and

 threats (SWOT) of a business or organization.

The analysis is typically conducted to help organizations identify internal and external

factors that may impact their ability to achieve their goals and objectives.

SWOT analysis of bank of Panjab:

Strength:
1. Supported by Punjab Government

2. Rated among top 6 banks in Pakistan

3. High credit Rating

4. Locker’s availability

Weakness:
1. Can Only operate in Punjab

2. Political Influence

3. Extensive Work load on employees

 4. Poor performance of employees due to lack of check & balance as compared to

private banks

5. Fewer promotion activities

6. Shortage of staff

Opportunities:
1. Growing Demand for Islamic Banking

2. Expansion of Digital Banking

3. Expansion of Branch Network

4. Strong Govt Backing

Threats:
1. Competition in banking sector

2. Economic uncertainty

3. Cybersecurity threats

4. Political Instability
Conclusion:
The Bank of Punjab is a scheduled commercial bank in Pakistan with a network of over 587

branches throughout the country. It was founded by Tajammal Hussain and is currently

headed by Zafar Masood, who joined as President and CEO on April 16, 2020. Its primary

objective is to accept deposits from the public and lend them to those who require finance for

their businesses, while also providing banking facilities such as remittances, foreign currency

deposits, trade, industry, and agriculture sections. Its mission is to meet customer needs

through innovative technology products and services to drive business growth while

promoting financial inclusion, diversity, and prosperity across the nation with a motivated

team through a culture of excellence and empathy. The Bank of Punjab's vision is to be the

banking partner in creating value and improving lives. Its core values are prioritizing

customers, corporate social responsibility, profitability, excellence, reward and recognition,

respect, and integrity.