THE INTERNSHIP REPORT ON

THE BANK OF AZAD JAMMU AND

KASHMIR

(July 2023- August 2023)

Submitted: Noman Saheed

Registration No: 2018-tcm(c)-004415
Session: 2022-2024
(July 2023) - August (2023)

DEPARTMENT OF MANAGEMENT SCIENCES UNIVERSITY OF

AZAD JAMMU & KASHMIR
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iii
 DEPARTMENT OF MANAGEMENT SCIENCES
UNIVERSITY OF AZAD JAMMU & KASHMIR
MUZAFFARABAD

Approval Sheet

Supervisor

Chairman

Examiner

iv
 TABLEOF CONTENTS
STUDENT’S DECLARATION .................................................................................................... vii

PREFACE ...................................................................................................................................... viii

ACKNOWLEDGEMENT .............................................................................................................. ix

1. INTRODUCTION TO THE REPORT ...................................................................................... 1

1.1. INTRODUCTION ................................................................................................................ 1

1.2 SCOPE OF STUDY (Objective) .......................................................................................... 2

CHAPTER NO.2 .............................................................................................................................. 3

Introduction of BAJK ..................................................................................................................... 3

The BAJK ..................................................................................................................................... 3

PRODUCTS& SERVICES ............................................................................................................. 5

PRODUCTS ................................................................................................................................. 5

Services ......................................................................................................................................... 7

SWOT ANALYSIS....................................................................................................................... 8

STRENGTHS ............................................................................................................................... 8

WEAKNESS Est .......................................................................................................................... 8

OPPORTUNITIES ...................................................................................................................... 9

THREATS .................................................................................................................................... 9

Board of Directors:..................................................................................................................... 10

FINANCIALSTATEMENT .......................................................................................................... 10

BALANCESHEETOFFIVEYEARSIN RUPEE BAJK`44 .................................................... 10

Profit and loss Statement off five years in rupees................................................................... 11

Horizontal ANALYSIS OF BalanceSheet ............................................................................... 12

Organizational Structure .......................................................................................................... 15

Organization Hierarchy Chart ................................................................................................. 16

The Network of Branches: ........................................................................................................ 16

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CHAPTER NO.3 ............................................................................................................................ 21

JOBDISCRIPTIONANDANALYSIS .......................................................................................... 21

MYLEARNING EXPERIENCE .................................................................................................. 21

Account Opening: ...................................................................................................................... 21

Issuance of Cheque Book .......................................................................................................... 21

loan Issuance .............................................................................................................................. 22

Credit Section ............................................................................................................................. 22

Remittance Department ............................................................................................................ 22

Clearing Department ................................................................................................................. 22

WHAT I LEARNT .................................................................................................................... 23

RATIOANALYSIS ANDINTERPRETATION ...................................................................... 23

Ratio Analysis ............................................................................................................................ 23

Asset Turnover Ratio: ............................................................................................................... 23

Current Ratio ............................................................................................................................. 24

Debt to Total Assets ................................................................................................................... 24

Debt to Equity Ratio: ............................................................................................................... 25

Net Profit Margin ...................................................................................................................... 26

FINDINDS& RECOMMENDATIONS ................................................................................ 26

BIBLIOGRAPHY .......................................................................................................................... 31

vi
 STUDENT DECLARATION’S

I declare that this material, which I now submit for assessment, is entirely my own work and has
not been taken from the work of others, save and to the extent that such work has been cited and
acknowledged within the text of my work. I understand that plagiarism, collusion, and copying are grave
and serious offences in the university and accept the penalties that would be imposed should I engage in
plagiarism, collusion or copying. I have read and understood the assignment regulations set out in the
module documentation. I have identified and included the source of all facts, ideas, opinions, and
viewpoints of others in the assignment references. Direct quotations from books, journal entries, internet
sources, module text or any other source whatsoever are acknowledge and the source cited are identified
in the assignment references. This assignment or any part of it, has not been previously submitted by me
or any other person for assessment on this or any other course of study.

I have read and understood the referencing guidelines as recommended in the report guidelines.

Signature: Noman Saheed

Roll no: 02

vii
 PREFACE

Practical training is a privilege, which is provided to the students of Master with an objective
to help the min pursuance of sound career in future. Practical training program for students is
the important and beneficial part of the course.

An internship report is academic requirement for student of M.Com for completing the degree.
Internship report is compiled after completing six weeks of internship in any organization. I am
thankful to management of Bank of Azad Jammu & Kashmir for providing me an opportunity to
increase my knowledge and experience as an internee in main branch.

The field of banking has always been a source of inspiration for me during my entire academic
career. To work in a bank, to acquaint with its working mechanism was always a point of golden
opportunity to complete my internship at AJK Bank Upper adda branch Azad Kashmir. Where I
learnt enough knowledge from my seniors. Who really supported me to gain a professional know
how about the functionality of commercial bank. In this report, I have tried to provide valuable
information about the services provided by the Bank of Azad Jammu and Kashmir under certain
areas namely commercial banking, consumer banking, financial services and corporate finance.

No matter how efficiently a study is considered, it cannot be perfect in all aspects. The study
may not include broad explanation of facts and figures due to the nature of the study. Secondly
the limitation that affects the study is the restriction on mentioning every fact of the bank due to
the problem of secrecy of the bank. Also, the availability of required data was a problem as all
the documents and files are kept strictly under lock and key due to their confidential nature.
Thirdly, the problem of short time period also makes the analysis restricted as one cannot
properly understand thus analyze all the operations of the bank just in 6 weeks.

viii
 ACKNOWLEDGEMENT
Innumerable thanks to Almighty ALLAH, whose unlimited and unpredictable sources help made
me able to win honors of life. I also pay all my respect to last Holy Prophet Muhammad (PBUH) who is
a beacon to well wishes of mankind and his faithful. Companions, who are forever a true torch of
guidance for humanity as a whole.
The internship reported in his manuscript was conducted under the kind supervision Prof. Dr.
Mudassar Hussain the University of Azad Jammu & Kashmir Muzaffarabad, most grateful to
acknowledgment his help, cooperation, valuable suggestions and sympathetic attitude throughout the
course of this research work.
I am also thankful to the Manager Mr.Asad Qadeer and other staff members of The Bank of
Azad Jammu & Kashmir upper Adda Branch. I would feel it incomplete without saying thanks to my
parents and other family member who supported me and encouraged me throughout my educational
career.

Ultimately, I am on board because of the honorable lecturers of my faculty, my class and well-
wishers.

Noman saheed

M.COM

ix
 CHAPTER NO.1

INTRODUCTION TO THE REPORT

INTRODUCTION

This is an essential academic requirement to complete an internship program of 6 weeks

in an organizations. Report writing that is an integral part in fulfilment of requirements follows
the internship for degree of M.Com. A report encompasses the experience of the internee, his
learning and analysis in light of which recommendations are made. This Internship report has
been written on “BAJK”.

EXECUTIVE SUMMARY
In the name of ALLAH, the Gracious and the Merciful who guides us in thedarkness and
helps in difficulties and all praises to him and respects are for his Holly Prophet (PBUH).
It is and academic requirement of the students of management sciences to undergo six
weeks of internship program for the award of Master degree. The aim of this report is to analyze
the operational working and overall performance of the Bank of Azad Jammu & Kashmir
Muzaffarabad District Complex branch Muzaffarabad.
In particular. Practical training is a privilege, which is provided to the students of masters,
objectively to help them in pursuance of sound carrier in future. While availing this compulsory
facility student not only enjoy this opportunity to test the accuracy of their theoretical knowledge
but also to learn as how they can put their best to earn a place in their ever-growing world.
I already know that member of standard banks in Pakistan are very limited due to different
circumstances, so I feel proud that I got an opportunity to work with the esteemed organizations
“The Bank of Azad Jammu & Kashmir” which is considered as the leading bank, a sleeping grant
in economy of Pakistan. I would like to mention here that I got a marvelous experience at
BOAJK which opened my mind and eyes. During my job Experience what I have seen, what I
have learned, what I have observed, what I have perceived and what finally I have achieved. You
can find all this in this report. I feel pleasure to submit this report to the Department. In the end I
wish to say thanks to all those who helped me in learning at BOAJK and in preparing my
internship report.
Purpose of the study
This report is based on study carried out the fulfilment of the degree requirement of the
Master in Management Sciences at the University of Azad Jammu and Kashmir.

The purpose of the study is to do practical work in field and apply the knowledge of
classroom lectures to the real life situations.
• To understand the various operations of the bank.
• To make possible recommendations in the light of the analysis.
• To improve long report writing skills.

10
Scope of the study
This report may help students in future to understand banking practices in our country. It
would also attempt to evaluate the overall performance of the bank of AJ&K through & detailed
analysis of its daily working.

Limitations of the Study

No matter how the efficiently a study is considered, it cannot be perfect in all aspects.
This study was conducted in accordance with the objectives of the study. The study may not
include broad explanation of facts and figures due to the nature of study. Secondly the
limitations that affects the study is the restriction on mentioning every fact of the bank due to the
problem of secrecy of the bank. Also, the availability of required data was a problem as all the
problem of secrecy and files are kept strictly under lock and key due to their confidential nature.
Thirdly, the problem of short time period also makes the analysis restricted as one cannot
properly understand thus analyze all the operations of the bank just in six weeks.

11
 CHAPTER NO.2

INTRODUCTION OF BANK OF AJK

The bank of state of Jammu & Kashmir was established under the bank of the state of
Jammu & Kashmir act 2005 and is principally engaged in commercial banking and related
services as a non-schedule bank of Azad Jammu & Kashmir. In the wake of an age long desire of
the people of the state of Jammu & Kashmir, the Azad Government of the state has since
established the Bank of Azad Jammu & Kashmir. The bank in legal parlance took its birth
through an enactment passed by the legislative assembly of state Azad Jammu and Kashmir in
the year 2005. The bill passed by the assembly was finally assented by the president of Azad
Kashmir. As per the enactment, the authorized capital of the bank is two billion rupees divided
into two hundred million ordinary shares of ten rupees each. However, the initial paid up capital
of the bank is five hundred million rupees. Further, the state government at all times has to
maintain equity contribution of not less than 51%. For remaining part of the equity, participation
from the private sector shall be sought. In this concern we are receiving a good response and, on
our way, to accept subscription from such parties who have strong presentation in the private
sector.
Effective November 01, 2006, the bank started functioning as a non-scheduled
commercial bank. To date, the bank has network of 36 branches all over the state of Azad
Jammu and Kashmir. As the time goes on, the bank is flourishing and marching towards its
destination for locating a better standing in the banking arena. Further, the government intends to
get the bank scheduled with the State Bank of Pakistan in the shortest possible time.

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 Vision Statement
To emerge as a premier financial institution foresting socio-economic development of the
people of AJK .
2.3 Mission Statement
To acquire market leadership through quality banking services, customized products,
business practices, merit and performance culture and participation in development of the state
for the well-being of its people.

2.5 Core Values

• Integrity
• Commitment
• Team Work
• Excellence in Service

http://www.bankajk.com/vision

http://www.bankajk.com/mission

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PRODUCTS & SERVICES
Deposits Schemes:

Current Account:

• Free to Investors

• Individuals, corporations, organizations and government departments can open

accounts under the scheme.

• The Accounts may be opened singly in one name or jointly in two or more names.

• The Account shall be opened with an initial/minimum deposit of RS. 500/-

• There is No withdrawal Limit for customers.

• No Profit will be paid on Current Account.

• No Zakat Will be deducted on Current Account.

PLS Savings Accounts:

• The Accounts shall be opened with an initial/minimum of Rs.100/-.

• The Accounts may be opened singly in one name or jointly in two or more names.

• No with drawl Limit.

• Profit will be paid on Six Monthly Basis.

• Withholding Tax will be deducted out of profits payable to the Account Holders.
• ZAKAT is liable on deposits if Zakat Exemption Certificate (CZ-50)is not provided

Special Deposit Accounts (SDA):

• Free to Investors.

• No Withdrawal Limit
• Individuals, corporations, organizations and government departments can open
accounts under the scheme.

• This is an operating/checking account

• The accounts can be opened in individual or joint names.

• The deduction of Zakat and Withholding tax will be applicable as per law of
the land.

• Profit is paid on daily product basis.

• Profit payable on half yearly basis.

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Bemisal Mahana Bachat Account (BMBA):

• The Bank of AJK has launched a New & Unique deposit Scheme with value
added features. The details of the new Scheme are as under

• Free to Investors

• Minimum Deposit Limit for profit is Rs. 25,000/-, however, the account can be
opened with Rs. 1,000/-

• Customer can conduct maximum of two debit transactions between 6th and last day
of month. However, withdrawal before 6th of month will not be treated as
deviation.

• Free lockers facility will be offered to clients having minimum balance of Rs. 1.00
M.

Term Deposit Account (TDR):

• The Bank of AJK also offers Bemisal Term Deposits Scheme with salient features
as under:-

• Minimum deposit requirement(0.1M for Individuals & 1.0M for Corporate

Customers)

• No profit to be paid in case of encashment before completion of 03 months.

General Term Deposit Accounts:

• The Bank of AJK also offers Term Deposit Accounts where deposits are
Years accepted on nuisance basis with different maturities from 03
Months to 5.
• The deduction of Zakat and Withholding tax will be applicable as per law of the
land.

Services
Remittance:
Demand Draft:
• Clients of the bank of AJK are also facilitated by issuance of Demand Drafts. If the
client intends to transfer funds within the State, the same is done by issuing DD on BOAJK
branches whereas in case the funds are remitted outside the state, the same is done through
UBL as the Bank of AJK is having agency arrangements with United Bank Limited.
Mail Transfer:
• Within the State of AJK, remittances are also carried out through Mail Transfer between
different branches.

15
Payment Order:
• For payments with in the City,Payment Orders are also issued by all the branches.
Call Deposit Receipts:
• Call Deposit Receipts are also issued to the Customers of the Bank as well as general
public.
• No charges are recovered on issuance of CDRs
Utility Bills:
• All the branches of the Bank are authorized to collect Water & Electricity Bills.
Collection of Telephone Bills will be started very soon.
Lockers:
• Lockers’ facility is available in main branches in three different sizes Small, Medium and
Large on annually fee with one time Security Deposit respectively to the size of locker.
Locker holders need to have an account in the Bank.

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SWOT Analysis of upper adda Branch
Strengths
The main strength of the upper adda branch is its location it is located in good place where it
receives healthy amount of deposit every year additionally the branch has a very qualified staff.
as most of the costumers are in government sector due to branch location it mostly deals in
government accounts which are a good source of earning for a bank.
Weakness
Along with the strength of this branch it also has many weaknesses which are not good and
cause hurdles in the operation of the bank. Some of its weaknesses are as follows.
High-cost deposit:
The branch has a very high-cost deposit ratio this mean that majority of the customers of this
branch have opened a saving account. The more the number of saving accounts in the branch the
profit branch has to pay its customer. This is because many of the customers try to unprofitable
on their savings.
Slow internet service:
The city of Muzaffarabad itself has a connectivity issue. The bank suffers due to this cause more
often. The upper adda branch is also facing the internet issue due to which the customer some
time have to wait a long period of time for getting their queries solved by the bank.
No ATM & debit card:
The AJK bank does not have any of its own ATM and debit card. This lack of facility prevents
many of the new customers in Muzaffarabad to seek services from AJK bank.
Opportunities
Offer Better Services to Government Employees:
Due to branch location it has a good opportunity to provide the government employees a good
service to the employees which will eventually result in more deposit to the branch the
employees.
Trainings Programs
Comprehensive trainings programs can be develop to upgrade the core skills of the existing staff
as well as integrate high quality hiring of the new employees
Merit - Based Culture
To improve the motivation of staff a merit based culture has to promote. Secondly the branch
can increase its efficiency by introducing incentives to its employees for good work
Threats
Following are the major threats which the branch is facing:
Competitors
The major threat for the upper adda branch of the AJK bank is its competitors other Bank branch
which is also located near this branch. The other banks branch provides more convenient
services as compared to the AJK bank because other bank is scheduled bank which also deals in

17
 the Islamic banking.
Secondly, other bank offers debits and credit cards which provides its customers in edge of
accessing their money at any place and time by just using an ATM machine.
Board of Directors:

• Dr.Ijaz Munir, Chairman

• Mr. Imran Samad, Managing Director,

• Mr. Farid Ahmad Tarar, Director

• Mr. Fayyaz Ali Abbasi, Director

• Syed Zahoor-ul-Hassan Gillani, Director

• Raja Tariq Masood Khan, Director

• Mr. Ejaz Hussain Rathore, Director

• Raja Mumtaz Ali, Director

• Mr. Naveed Sadiq, Director

http://www.bankajk.com/bod/bod.html

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FINANCIAL STATEMENT
BALANCE SHEET OF FIVE YEARS IN RUPEE BAJK `
44
ASSETS
2018 2019 2020 2021 2022
Cash and balances with 970,020 367,469 306,368 300,844 873,616
treasury banks
Balances with other banks 2,120,390 3,434,016 3,628,344 3,368,668 3144,100
Landing to financial 6,334 - - - -
Institutions
Investments 297,877 225,397 203,549 1,172,192 1150.465
Advances 952,880 1,101,286 1,678,147 2,256,907 2833,606
Operating fixed assets 32,951 91,156 97,983 111,354 -
Deferred tax assets - - - - -
Other assets 133,231 182,009 290,032 375,0887 326,479
Total Assets 4,513,683 5,401,333 6,204,423 7,585,052 8,328,266
LIABILITIES
Bills payable 3,356 6,218 4,460 5,551 7634
Borrowings - - - - -
Deposits and other accounts 3,883,035 4,599,756 5,367,895 6,642,949 7440877
Subordinate loans - - - - -
Liabilities against assets - - - - -
Subject to finance lease
Deferred tax liabilities 1,635 3,322 3,280 488
Deferred Government grant 36 27 18 9
Other liabilities 76,742 98,496 86,248 110,822 117642
3,964,804 4,707,819 5,461,901 6,759,819 7566153
NET ASSETS 548,879 693,514 742,522 825,233 762113
REPRESENTED BY
Share capital 478,125 525,938 654,981 654,981 785977
Reserves - 50,152 - - -
In appropriate profit - - 75,347 155,350 94519
478,125 576090 730,328 810,331 -
Surplus on revaluation of 10,945 9614 12,194 14,902 8781
assets–net
48,9070 58,5704 742,522 825,233 889277

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 PROFIT AND LOSS STATEMENT OF FIVE YEARS IN RUPEES

BAJK
2018 2019 2020 2021 2022
DETAILS In ‘000
Mark-up/return/interest earned 347,278 425,887 555,254 561,905 723,400
Mark-up/return/interest expensed 145,644 176,427 292,931 319,836 377,681
Net mark-up/interest income 201,634 249,460 262,323 242,069 345,719
Provision against non-performing loans
997 4083 15,192 26,174 57,511
and advances
Reversal of provision/provision against
- 18,666 (6000) (8000) (4,666)
Landing to financial institutions
Provision for diminution in the value of
- 49940 - - -
investment
Bad debts written off directly - - - - -
997 72,689 9,192 18,174 52,845
Net mark-up/interest income after
200,637 176,771 253,131 223,895 292,874
provisions
NETMARK-UP/INTERESTINCOME
Fee, commission and brokerage income 7,077 7,993 10,150 15,078 19,605
Dividend income 979 6,619 3,463 6,810 4,433
Income from dealing in foreign - - - - -
currencies
Gain on sale of securities–net 16,684 2,828 29,908 21,258 29,712
Unrealized gain/(loss)on revaluation of
- - - - -
Investments classified as held for trading
Other income 2,017 1,262 2,714 2,217 2,745
Total non-markup/interest income 26,757 18,702 46,235 45,363 56,495
227,394 195,473 299,366 269,258 349,369
NONMARK-UP/INTEREST
EXPENSES
Administrative expenses 94,436 118,238 158,856 206,658 243,351
Other provisions/write offs 41 - - - -
Other charges - - - - -
Total non-markup/interest expenses 94,477 118,238 158,856 206,658 243,351
132,917 77,235 140,510 62,600 106,018

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Extraordinary/unusual items - - - - -
PROFITBEFORETAXATION 132,917 77,235 140,510 62,600 106,018
Taxation–current 40,472 23,556 44,077 16,501 29,108
Taxation–prior years - - - - -
Taxation–deferred (39) 831 619 (319) (3,093)
40,433 24,387 44,696 16,172 26,015
PROFITAFTERTAXATION n92,484 52,848 95,814 46,428 80,003
Basic/diluted earnings per share-Rupees 2.42 1.00 1.66 0.72 1.22

HORIZONTAL ANALYSIS OF BALANCE SHEET

BAJK
2018 2019 2020 2021 2022
DETAILS % % % % %
ASSETS
Cash and balances with
100.00 3000.60 1138.20 948.94 931.83
Treasury banks
Balances with other banks 100.00 79.48 128.72 136.00 126.27
Le ending to financial
100.00 12.67 0 0 0
Institutions
Investments 100.00 124.55 94.24 (85.11) 490.12
Advances 100.00 288.50 333.44 508.09 683.32
Operating fixed assets 100.00 143.34 396.54 426.23 484.40
Deferred text assets 0 0 0 0 0
Other assets 100.00 179.87 245.72 (391.56) 506.39
Total Assets 100.00 132.11 158.09 181.60 222.01
LIABILITIES
Bills payable 100.00 97.81 181.22 129.99 161.79
Borrowings 0 0 0 0 0
Deposits and other accounts 100.00 134.97 159.89 156.59 230.91
Subordinated Loans 0 0 0 0 0
Liabilities against assets
0 0 0 0 0
Subject to finance lease
Deferred tax liabilities 100.00 203.36 413.18 (407.96) 60.70
Deferred Government grant 100.00 80.00 60.00 (40.00) 20.00

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Other liabilities 100.00 165.83 212.88 186.40 239.51
10.00 134.43 160.82 186.58 230.91
NETASSETS 100.00 112.21 141.79 151.81 168.72

REPRESENTEDBY
-Share capital 100.00 125.00 13.85 171.24 171.24
Reserves 0 0 0 0 0
Un appropriated profit 100.00 0 0 (73.44) 151.43
100.00 98.56 118.76 150.55 167.04
Surplus on revaluation of assets
100.00 271.11 238.15 302.05 369.13
– net
100.00 99.98 119.74 151.81 168.72

22
Comments:

• Cash and balances of the BOAJK shows increasing trend in 2018 but there is a decrease
in 2019 & 2020 and further decrease in 2021.
• Balances with other banks shows increased trend as compared to base year 2018.
• The lending to financial institution shows a zero trend.
• The investments of the BOAJK also increase in 2018 & decreased in 2019&2020
however, it is higher in 2021.
• Advances made by BOAJK show an increasing trend through the five years.
• Operating fixed assets of BOAJK also shows an increasing trend during last five years.
• Other assets show an increasing trend from 2018, 2019 and 2020 and huge decrease in
2021 but increase in 2022.
• The share capital of BOAJK increases in 2018 but huge decrease in2019&hen shows
increasing trend in 2020 & 2021. This shows a positive sign for the bank.
• The surplus on revaluation of assets shows an increasing trend.
• The Bill payable also shows an increasing trend.
• The deposits and other accounts of the BOAJK show an increasing trend during the
years. The other liabilities also show increasing trend.

23
ORGANIZATION STRUCTURE & HIERARCHY
Organization makes management easier, effective and result oriented. An organization designed
and structured on planning lines promotes collaboration and negotiation among individuals in a group
and this improves the effectiveness and efficiency of communication within the organization. This
function creates clear cut lines of authority and responsibility in the organization.
The word “Organization” has two meanings, firstly it means an institution or structure, viz. a
bank is an institution with its organizational structure of Head Office, local office, district offices and
branches. Secondly, it means a process of an ongoing activity i.e., the process of organizing, locating
and bringing about relationships among men, money and services. In fact, organization establishes
relationships among the people so that they collectively contribute to the attainment of organizational
goals effectively. Thus, organization is a means to an end. It is also an important part of management.

BRANCH PROFILE
Name of Branch Bank Of Azad Jammu & Kashmir upper adda
branch Muzaffarabad
Branch Code 061
Address Near Shah Inayat Darbar Upper Adda

Name of Manager Mr. Asad Qadeer

Name of Operation Manager Mr. Waseem
Total number of Employees 07
The Position of this Branch 02
Total Number of Account 5682
Number of Borrower 4512

AJK BANK UPPER ADDA BRANCH HIERARCHY

Mr. Asad Qadeer Branch Manager

Mr. Waseem Operation Manager

Mr. Rizwan Nazir Credit Manager
Mr. Mahmood Riaz Operation Officer
Mr. Mukhtiar Abbasi Credit Officer
Mr. Aslam Choudry Cash Officer/Assistant
Ms. Tayyaba BSO

24
 Organization Hierarchy Chart

www.bankajk.com/organogram.html

The Network of Branches:

The BOAJK has a network of 66 branches, which are located in different areas of Azad
Kashmir. In order to strengthen the operation network in the country, the management
is planning to open new branches at important cities and locations

BranchNetwork
Code Location Contact Details
TEL:05822 921181
Main Branch Muzaffarabad(0001)Bank
0001 Square, Chattar, Muzaffarabad FAX:05822921365
E-mail:manager0001@bankajk.com
TEL:05827 921448
Main Branch Mirpur(002) Chowk Shaheedan
0002 Mirpur FAX:05827921442
E-mail:manager0002@bankajk.com
TEL:05827 923069
Dadyal Branch(0003)MaqboolButt Shaheed
0003 Chowk, Dadyal FAX:05827923070
E-mail:manager0003@bankajk.com
TEL:05827 922663
Chaksawari Branch(0004)Opposite Al-
0004 Shahzad Hotel Chaksawari FAX:05822922664
E-mail:manager0004@bankajk.com

25
 TEL:05826 920241
Kotli Branch(0005)Poonch/Rawalpindi Road
0005 Kotli FAX:05826920242
E-mail:manager0005@bankajk.com
TEL:05824 920069
Rawalakot Branch(0006)Gulf Shopping
0006 Complex Katchary Road Rawalakot FAX:05824920068
E-mail:manager0006@bankajk.com
TEL:05826 923062
Sehnsa Branch(0007)Main Bazar Sehnsa AJK
0007 FAX:05826923063
E-mail:manager0007@bankajk.com
TEL:05821 920033
Athmuqam Branch(0008)Main Bazar
0008 Athmuqam District Neelum AJK FAX:05821920033
E-mail:manager0008@bankajk.com
Islamgarh Branch(0009)Main Bazar TEL:05827 922562
0009
Islamgarh District Mirpur AJK FAX:05827922562
TEL:05823 920103
0010 Bagh Branch (0010) Main BazarBagh AJK FAX:05823920104
E-mail:manager0010@bankajk.com
Arja Branch (0011) Bagh/Rawalakot Chowk TEL:05823 921005
0011 Arja District Bagh FAX:05823921006
AJK E-mail:manager0011@bankajk.com
TEL:05828 920505
Bhimber Branch(0012)Main Bazar Bhimber
0012 AJK FAX:05828920506
E-mail:manager0012@bankajk.com
TEL:05825 920010
Pulandri Branch(0013)Main Bazar Pulandri
0013 AJK FAX:05825920009
E-mail:manager0013@bankajk.com
TEL:05826 921060
Nar Branch(0014)Main Bazar Nar District
0014 Kotli AJK FAX:05826921061
E-mail:manager0014@bankajk.com
TEL:05827 920439
MirpurF-3Branch(0015)SectorF-3Mirpur AJK
0015 FAX:05827920440
E-mail:manager0015@bankajk.com
TEL:05824 920233
Hajeera Branch(0016)MainBazarHajeera
0016 District Rawalakot Azad Kashmir FAX:05824920234
E-mail:anager0016@bankajk.com
TEL:05822 922503
Geri-Dupata Branch(0017)MainBazar
0017 Geri-Dupata Muzaffarabad A.K FAX:05822922502
E-mail:manager0017@bankajk.com
TEL:05822 920466
Lower Plate Branch (0018) Near City Hospital
0018 Lower Plate Muzaffarabad A.K FAX:05822920464
E-mail:anager0018@bankajk.com
TEL:05822 922302
Chatter Klass Branch(0019)Main Bazar
0019 Chatter Klass Muzaffarabad A.K FAX:05822922301
E-mail:anager0019@bankajk.com
Brahtla Branch(0020)Main Bazar Brahtla TEL:05826 475094
0020
District Kotli A.K FAX:*******
TEL:05826 921863
Khui Ratta Branch(0021)MainBazar Khui
0021 Ratta District Kotli A.K FAX:05826921864
E-mail:manager0021@bankajk.com

26
 TEL:05822 922003
Chakaar Branch(0022)Main Bazar Chakaar
0022 District Muzaffarabad A.K FAX:05822922002
E-mail:manager0022@bankajk.com
TEL:05823 921213
Dheerkot Branch(0023)MainBazar
0023 Dheerkot District Bagh A.K FAX:05823921214
E-mail:manager0023@bankajk.com
TEL:05822 922108
Pathika Branch(0024)Main Bazar Pathika
0024 District Muzaffarabad A.K FAX:05822-922109
E-mail:manager0024@bankajk.com
TEL:05824 921027
Bandi Abbaspur Branch(0025)Main Bazar
0025 Bandi Abbaspur District Poonch A.K FAX:05824921028
E-mail:manager0025@bankajk.com
TEL:05826 921163
Sarsawa Branch(0026)Main Bazar Sarsawa
0026 District Kotli A.K FAX:05826921164
E-mail:manager0026@bankajk.com
TEL:05827 922260
Pulmenda Branch(0027)Main Bazar Pulmenda
0027 District Mirpur A.K FAX:05827922261
E-mail:manager0027@bankajk.com
TEL:05822 923126
Madina MarketBranch(0028)Madina
0028 Market District Muzaffarabad A.K FAX:05822923127
E-mail:manager0028@bankajk.com
TEL:05828 922064
Barnala Branch (0029) Main Bazar Barnala
0029 District Bhimber AK FAX:05828922063
E-mail:manager0029@bankajk.com
Khai-gala Branch (0030) Main Bazar Khai- TEL:05824 921027
0030
Gala District Poonch AK FAX:05824921028
TEL:05826 922361
Khad-Gujran Branch (0031) Main Bazar
0031 Khad-Gujran District Kotli AK FAX:05826922362
E-mail:manager0031@bankajk.com
TEL:05825 920224
Trar-khal Branch (0032) Main Bazar Trar- khal
0032 District Pullandri AK FAX:05825920223
E-mail:manager0032@bankajk.com
TEL:05828 922162
Chowki Branch (0033) Main Bazar Chowki
0033 District Bhimber AK FAX:05828922161
E-mail:manager0033@bankajk.com
TEL:05822 922632
Hattian Branch (0034) Main Bazar Hattian
0034 District Hattian AK FAX:05822922631
E-mail:manager0034@bankajk.com
TEL:05827-485533
Poona Branch (0035) Main Bazar Poona
0035 District Bhimber AK FAX:05827-485533
E-mail:manager0035@bankajk.com
TEL:05826-922165
Charhoi Branch (0036) Main Bazar Charhoi
0036 District Kotli AK FAX:05826-922165
E-mail:manager0036@bankajk.com
TEL:05822-921826
Chakothi Branch (0037) Main Bazar
0037 Chakhoti District Hattian AK FAX:05822-921826
E-mail:manager0037@bankajk.com
Kahotta Branch (0038) Main Bazar Kahotta TEL:05823-921772
0038
District Hawaili AK FAX:05823-921772

27
 E-mail:manager0038@bankajk.com
TEL:05824-425143
Paniola Branch(0039)MainBazarPaniola
0039 District Rawalakot A.K FAX:05824-426482
E-mail:manager0039@bankajk.com
District ComplexMuzaffarabad Branch TEL:05822-920187
0040 (0040)OldSecretriate District Complex District FAX:05822-920187
Muzaffarabd E-mail:manager0040@bankajk.com
Bloch Branch(0041)Main Bazar Bloch TEL:05825-920317
0041
District Pullandri A.K FAX:05825-920317
TEL:05826-921461
Tatta-Pani Branch(0042)Main BazarTatta-
0042 Pani District Kotli A.K FAX:05826-921461
E-mail:manager0042@bankajk.com
TEL:***********
Sharda Branch(0043)Main Sharda Bazar
0043 District Neelum A.K FAX: ***********
E-mail:**********
TEL:05826-921865
Mi-Toti Branch(0044)MainBazarMi-toti
0044 District Kotli A.K FAX:05826-921865
E-mail:manager0044@bankajk.com
TEL:05827-922764
Jatlain Branch(0045)Main Bazar Jatlain
0045 District Mirpur A.K FAX:05827-922764
E-mail:manager0045@bankajk.com
TEL:05827-920442
Mian Muhammad Town Branch(0046)Main
0046 Muhammad Town District Mirpur A.K FAX:05827-920442
E-mail:manager0046@bankajk.com
TEL:05827-922564
Jhatti DheriBranch(0047)Jhatti Dheri Cross
0047 District Mirpur A.K FAX:05827-922564
E-mail:manager0047@bankajk.com
TEL:05826-921361
Dhanna Branch(0048)Dhanna Bazar
0048 District Kotli A.K FAX:05826-921361
E-mail:manager0048@bankajk.com
TEL:05826-471319
Talian Branch(0049)Main Bazar Talian
0049 District Sadhnutti A.K FAX:05826-471319
E-mail:manager0049@bankajk.com
TEL:05824 920069
Thorar Branch(0050)Main Bazar Thorar
0050 District Rawalakotr A.K FAX:05824920069
E-mail:manager0050@bankajk.com
TEL:05826 474441
Juna Branch(0051)Main Bazar Juna District
0051 Kotli A.K FAX:05826474441
E-mail:manager0051@bankajk.com
TEL:05821 920502
Joora Branch(0052)Main Bazar Joora
0052 District Neelum A.K FAX:*******
E-mail:
Ladies Branch,Muzaffarabad(0053)Hashim TEL:05822-923007-008
0053 Plaza, Poultry Farm Road, Muzaffarabad, FAX:*******
AJK E-mail:manager0053@bankajk.com
TEL:05827-920405
Ladies Branch,Mirpur(0054)HarisPlaza Chowk
0054 Shaheedan Sector C-2 Mirpur AK FAX:*******
E-mail:manager0054@bankajk.com
0055 Seharmandi Branch(0055)Main Bazar TEL:05826-923150

28
 Seharmandi,Tehsil Sehensa DistrictKotli FAX:*******
AK E-mail:manager0055@bankajk.com
TEL:05824-920544
CMH Road Rawalakot Branch(0056)CMH
0056 Road Rawalakot AK FAX:05824-920545
E-mail:manager0056@bankajk.com
TEL:05827-922508
Saranda Branch Mirpur (0057) Post Office
0057 Kanali SarandaTehsil&DistrictMirpurAK FAX:******
E-mail:manager0057@bankajk.com
Ratta Branch Mirpur (0058) Allah Abad TEL:05827-923011
0058 Market Main Road Ratta Tehsil Dadyal Distt. FAX:******
Mirpur E-mail:manager0058@bankajk.com
TEL:0533029731
Moil Branch Bhimber(0059)MainBazar Moil,
0059 Tehsil & District Bhimber. FAX:******
E-mail:manager0059@bankajk.com
TEL:05824-920911
Banbehk Branch(0060)Tehsil&District
0060 Rawalakot. FAX:******
E-mail:manager0060@bankajk.com
TEL:05822-920746
Upper Ada Branch (0061) Near Shah Anayat
0061 Darbar Upper Ada Muzaffarabad. FAX:******
E-mail:manager0061@bankajk.com
TEL:05822-922514
Chathian Branch (0062) Chathian, Garhi
0062 DupattaDistrict&TehsilHattianBala. FAX:******
E-mail:manager0062@bankajk.com
TEL:05821-920302
Kutton Branch
0063 Kutton,TehsilAuthmuqam,District Neelum. FAX:05821-920303
E-mail:manager0063@Bankajk.com
TEL:05826-923350
Jarahi Branch
0064 TehsilDolyaJattan,DistrictKotli. FAX:05826-923350
E-mail:manager0064@Bankajk.com
TEL:05826-480649
Goi Branch
0065 Village &P.OGoiTehsil&District Kotli, FAX:05826-480649
E-mail:manager0065@Bankajk.com
0066 Lorry Adda Branch TEL:05826-920247
Lorry Adda, Tehsil &District Kotli,AJK,
FAX:05826-920248
E-mail:manager0066@Bankajk.comE-

29
 CHAPTERNO.3

JOB DISCRIPTION AND ANALYSIS

MY LEARNING EXPERIENCE
I have accomplished my internship program of 6 weeks at BOAJK upper adda branch.
During internship I learned things regarding my personal experience. Really it was a useful
experience to deal with different types of Customers.

The Branch Manager introduces me with all staff of the Branch. Under the supervision of
Operational Manager of branch, I worked in following departments as an Internee.

Account Opening:
Account opening is a very sensitive procedure. It contains the basic information
regarding. An account opening from is given to the customer if he wants to open an
account. It also services as the purpose of giving complete record of account holder.
After completing all the requirements mentioned in account opening from an account
number is given to the customer. Then the customer becomes the holder of account and
can deposit or with draw money when and where required. Account opening register is
maintenance so that every customer has a unique account number. While in ledger, the
entry is posted along with the address and personal information of the account holder and
the mode of transaction he wants to make with the bank.

According to the type of account relation customer has with the bank, the summary of
closing balance of all the accountholders is then shifted to another book known as
“statement of affairs” under their particular heads, on a particular date.

Issuance of Cheque Book:

Amount from the account could only be withdrawn through cheque. There is a slip called
CBR (Cheque book Regulation) given to the customer on his request for issuance of
cheque book, after the account has been opened. The basic information on CBR is title of
account holder, account number, leaves the cheque book contains, signature of applicant,
signature of officer and the signature of operational manager. After verification of all the
information mentioned above cheque book is issued.

30
WEEKS JOB FUNCTIONS SUPERVISION
st nd
1 week to 2 Cash dealing I entered the cash amount, Mr. Asad
week section check s and account numbers Choudhary
in manually and on
computerized system.
3rd to 4th week Account opening I perform the following Ms. Tayyaba& Mr.
section and functions about opening of Waseem
issuance of letter accounts and issuance of check
of thanks books to customers and
attachment of letter of thanks
in customer accounts files.;2
5th week to 6th Loan issuance/ I write the entries of loan Mr. Mahmood Riaz
week credit section transactions on system of
customers and separate the
case files.

31
 WHAT I LEARNT:

During my internship period I learnt so many things, especially the exposure to

professional world was great. First of all, I came to know that how banks work and where
our banking industry is moving. BOAJK gave me the opportunity to learn many things as
follows:

➢ I learnt how to deal with customers.

➢ I learnt how to do multiple task together

➢ I learnt the basic function of banking institution.

➢ I have the background of M.Com. These two studies helped me a lot in my work
at BOAJK. For maintaining the accounts, I used the knowledge of M.Com where
we were taught debit and credit entries, conversion skills and how to
communicate effectively which helped me to deal with customers and my
colleagues and officers. Managing many things at time is the skill which I learnt
during M.Com program.

RATIO ANALYSIS AND INTERPRETATION

Ratio Analysis
Financial ratios are the tools, which are used to analyze the financial conditions and
performance. By using ratios, we get a comparison that may prove more useful than the
raw numbers by themselves.

Ratio analysis is a systematic use of rations to interpret the financial statement, so that the
strength and weakness of a firm can be determined.

Asset Turnover Ratio:

The amount of sales generated for every dollar's worth of assets. It is calculated by dividing
sales in dollars by assets in dollars.

32
 Asset Turnover Ratio=Net Sales/ Total Assets* 100

Year 2018 2019 2020 2021 2022

Ratio
10.16 9.44 10.28 9.06 9.53
%

Analysis:

This ratio is more useful for growth companies to check if in fact they are growing
revenue in proportion to assets. In 2018 the ratio is 10.16% in 2019 the ratio is 9.44% and
in 2020 the ratio is 10.28% which are greater than 2021. In the year 2018 the ratio is
9.06% and in 2022 it increase 9.53%.

Current Ratio:
Current ratio is a measure of liquidity position of an organization. It compares the current
assets with current liabilities of a business organization.

Current Ratio=Current Assets/Current liabilities*100

Year 2018 2019 2020 2021 2022

Ratio% 95.4 79.6 82.5 73.2 50.68

Analysis:

Current ratio of BOAJK is 95.4% in 2018 & a little bit decrease in 2019 which is 79.6%
but in 2020 it increase82.5% but in 2021 current ratio decrease to 73.2%. In 2022 we see
further decrease to 50.68%. Acutely bank is newly formed as compare other banks it
invested in fixed assets to increase branches and recruit more employs. That is bank have
low current ratio.

Debt to Total Assets:

This ratio serves a similar purpose to the debt-to-equity. It highlights the relative
importance of debt financing to the bank by showing the percentage of asset that is
supported by the debtfinancing. The higher this ratio the greater the financial risk the
lower this ratio the lower the financial risk.

Debt To Total Assets=Total liabilities/Total Assets

Year 2018 2019 2020 2021 2022

33
 Ratio 0.856 0.878 0.871 0.880 0.92

Times Times Times Times Times

Analysis:

From the above analysis it is observed that in year2018itwas0.856 in2019itincrease0.878

itislittlebitchangedecreasesin2020.Weseein smalldeficiency0.871 &in2021itis0.880 in
2022 there is increase to 0.92 here we observe it not fluctuate much just a little bit change
occur that is the unfavourable sign for organization .Organization need to increase assets
and decrease liabilities.

Debt to Equity Ratio:

Debt to Equity ratio is used to assess the extent to which the organization is using
borrowed money. This ratio in banks on the higher side as compared to the other
businesses, because of the nature of banking business, which is to take deposits and then
lend it to customers.

Debt to Equity Ratio=Total liabilities/ Share Holder Equity.

Year 2018 2019 2020 2021 2022

Ratio 7.65 8.29 8.95 8.33 10.32

Times Times Times Times Times

Analysis
In year 2018 debt to equity was 7.65 it increases in 2019 8.29 it shows positive sign for
organization because liability decreased. In 2020 it shows increasing trend that is
unfavorable for organization and in 2021 it slightly decreases 8.33 & in 2022 there is
increasing trend organization have need to increase shareholder equity & decrease liabilities.

Net Profit Margin

A ratio of profitability calculated as net income divided by revenues, or net profits divided
by sales. It measures how much out of every dollar of sales a company actually keeps in
earnings.
Profit margin is very useful when comparing companies in similar industries. A higher
profit margin indicates a more profitable company that has better control over its costs
compared to its competitors.

34
 Net Profit Margin=Net Profit/Net Sales*100

Year 2018 2019 2020 2021 2022

Ratio% 26.63 12.40 17.18 8.26 11.05

Analysis:

In the year of 2018 the Profit Margin Ratio of the Bank shown 26.63% which decreased
to 12.40% in 2019, but it increases to 17.18% in 2020 which show positive trend. In 2021
the ratio is 8.26%. In year 2022 it increases to 11.05%.

CHAPTER04

FINDINDS & RECOMMENDATIONS

Findings
Although AJK bank is government bank but like other organizations and banks, it faces many
problems which need to be solved. During my internship I find many problems in AJK bank and
also discussed in SWOT analysis. These problems are discussed below and also give
recommendations for solving these problems.
In the branch there is unequal distribution of wealth. The work is not properly distributed in all
staff members. Some employees work all day and some other have nothing to do all day.
There is not proper decision-making system. All decisions are dependent on head office, without
the permission of head office the branch cannot take any decision.
There is no ATM facility for customers and due to this customer face problems in cash
withdrawal.
Records are not properly maintained. When certain record is needed the staff require more time
for finding data.
Number of accounts are opened in daily basis for withdrawal of cash, but the depositors are less
that’s why face cash problem branch many times.
Half of the staff is not well trained for solving problems when arises. Because no proper training
sessions are organized.
There is absence of job rotation in AJK Bank and many members do same job for long time
period.
Another very important thing which is ignored by bank is appreciation if employees on their
good performance.
35
Recommendations
Following are some of the suggestions and recommendations that I want to give on the basis of
shortfalls or weaknesses found in the bank. Study of the branch helped mw evaluate the
organization in comparison to its future and competitors.
• The data obtained from the analysis of its present and future in combination with my
professional studies resulted in some suggestions and implementation plans, which can help
to increase the profitability and operational success of the upper adda branch branch. some of
the major findings/suggestions are discussed.
• The branch should emphasis on the organization of effective training and development
programs for its new as well as existing employees so that these are gradually updated
regarding the recent developments in the field of banking.
• The lighting system must be improved and all the out of use lights must be replaced.
• Cleaning and shining system are boring at all. Should be improved.
• Automatic generators and AVR (automatic voltage regulator) should be made available to
the branch to minimize the disruptions due to power failure.
• Newspaper should be provided to the customers to avoid the pain of waiting long.
• A cash counting machine can help reduce the time spent in counting cash.
• The branch needs research, which should be engaged in evaluating and interpreting the ways
in which the bank can flourish more and more.
• Bank should plant to expand overseas and add branches and employees at home even as
economic growth slows after the worst floods in the nation’s history.
• The branch should develop strategy, employs the policy and emphasize to increase deposits
reserves that enable to reduce borrowings. Therefore, this branch must a clear plan for
increasing the number of accounts.
• The branch should be fully prepared in its management of financial crises and its business
continuity planning, within the standing committee framework, and should work with others
to strengthen national crises management preparations.
• Every depositor should be given equal importance and there should be no differentiation
between customers so that every customer feels himself as much important as the other
customer.
• Attitude of staff should be friendly to all customers. The customers should be taken to the
concerned person or guided friendly if the concerned persons is not available. The attitude of
that’s not my job should not exist anymore.
• Personal contacts with the customers can help in providing information to the customers. All
the customers must be provided a chance to get the desired information by personal contact
with the bank staff.
• Complaint and suggestion box should be maintained at the door of the bank where the
customers can point out drawbacks in the customer's services and put forwards their
suggestions on his improvement of the services quality of the bank.

36
 • The financial audit of the branch is conducted on regular basis both as a surprise and routine
audit. However, the performance and system audits are completely ignored which, otherwise
should have been a compulsory part of the auditing services of the bank.
• They should increase customer ratio through efficient marketing.
• The bank must hire efficient marketing professionals.

Conclusion
As this was not an easy task to execute successfully this study. But with the grace of Allah
Almighty, it become not so difficult for me, and I successfully executed the task. AJK bank id
one of the great names in the banking sector of AJK. Its mission and vision policies and
procedures, objectives and strategies, performances and it is current market position obviously
denotes its strengths and soundness. It is playing a vital role in the economic growth of the state
and country. During my internship period at AJK bank, I got the opportunity to learn the
complex banking system. During this period, after analyzing the working of the bank, some
comings are also focused which are discussed as recommendations. In order to build on image,
public relation department should also be well established and well organized.
In short after through study and analysis of AJK the overall situation, it is market position its
internal soundness and its capable management can be green signal for AJK's management.

LIST OF ABBREVIATION/ACRONYMS
Abbreviations Meanings

AJK Azad Jammu & Kashmir

ATM Automatic Teller Machine

CD Current Deposit

DD Demand Draft

FC Foreign Currency

HO Head Office

IBC Inwards Bills for Collections

IC Inward Clearing

LBC Local Bills For Collections

LCY Local Currency

37
MT Mail Transfers

OBC Outwards Bills for Collection

PLS Profit and Loss Saving Account

RF Running Finance

SBP State Bank of Pakistan

SDA Special Deposit Account

SNTD Short Notice Term Deposit

SVP Senior Vice President

TDR Term Deposit Receipts

TT Telegraphic Transfers

BC Banker Check

SWOT Strength, Weakness, Opportunity, Threat

38
BIBLIOGRAPHY
ONLINE REFERENCE:

• http://www.bankajk.com/bod/bod.html
• http://www.bankajk.com/core_values
• http://www.bankajk.com/loans_schemes.html
• http://www.bankajk.com/mission
• http://www.bankajk.com/vision
• http://www.bankajk.com/res.php?=010004
• http://www.bankajk.com/res.php?sgv=010008

39