The Bank of Punjab

Internship Report

BANK OF PUNJAB

The Bank of Punjab

“INTERNSHIP REPORT ON BOP BRANCH”
Duration of internship: 8 Weeks Starting Date: Completion Date:
Submitted To:

01-07-2010 30-08-2010

FARHAT ULLAH KHAN
Submitted By:

MHAMMAD IMRAN AWAN MBA (B & F) 4th Term
DEPARTMENT OF D.B.A Gomal University Dera Islamail Khan (KPK)

The Bank of Punjab

Table of Contents
Original/Attested Internship Letter……………………………………I Executive Summary…………………………………………………….II 1.0 Introduction ……………………………………………………........4 1.1 Introduction of Banking in Pakistan…………………………………..5 1.2 BOP Background (History)…………………………………...10 1.3 Objectives………………………………………………….…...13 1.4 Organizational Structure…..……………………………….....…13 1.5 Products or Services Offered……………………………………15 1.5.1 Products/Services Details (A) ………………………….16 1.5.2 Products/Services Details (B) ………………………….33 2.0 Learning and Experience……………………………………………36 2.1 Internship Duration and Rationale for Selection……………….36 2.2 Details of training department wise/Tasks performed …………38 2.2.1 Task Performed (a) (Details) ………………….……….…39 2.2.2 Task performed (b) (Details) ……………………………..48 2.3 SWOT Analysis of organization…………..………………….....54 2.4 Recommendations……………………….………………..……..57 Conclusion………………………………………………………...…….....59 References………………………………………………………………....59 APPENDICES……………………………………………………….........59 ACKNOWEDGEMENTS………………………………………………..62 Personal Resume…………………………………………………………63

He gave me small introduction of the bank and introduced me to some staff of the bank.And in Bhakkar there is no other opportunity to do internship. Apart of completing a course requirement. During my internship I am able to learn practical aspect of business. .And I have also a reference in Punjab bank. This report is about my internship that I have undergone at Punjab Bank Limited Bhakkar Branch from 01-07-2008 to 20-08-2008. and get good working experience. Also worked in the operations department that has clearing. I have learned more about the credit. In this rotation the stay in department is usually a week or fifteen (15) days. The working environment in Punjab bank is something that can be found only in a challenging and in a reputed multinational corporation. So in order to learn more this was my choice. Every internee is rotated among the bank’s departments and so was I. For my MBA course requirement I got an opportunity to work as an internee in any organization. One is provided with plenty of opportunities to groom his career and to learn while working this sort of an environment. On the very first day of my internship I reported to Operation Manager Sajjad Haider Khan. This rotation is done in order to have general concept regarding bank’s functions. Foreign Trade and accounts department. I decided to take up Punjab bank Limited for my internship because I really like to work in banking sector. I learnt a lot from this internship in terms of how to deal with people while you are on a job. The senior staff is always open for any kind of suggestions and help for the junior staff and the internees.I apply in some banks. account opening and remittances have given below the caption of activities I was involved in during the period of seven weeks.First of all Punjab bank call me to work as an internee in Bank of Punjab. operations and policies.The Bank of Punjab Executive Summary: Internship programs are designed to make students known to the practical work and to give them proper experience that would help them in their future endeavors.

banking was mostly in the lands of Hindus who immediately started transferring their offices and assets into India.The Bank of Punjab Chapter 1 Introduction HISTORY OF BANKING IN PAKISTAN Pakistan came into being on 14th August. as many as about 1. relationship between the two countries became most strained immediately after independence. It was agreed between the two countries that reserve bank of India shall continue to function in the Pakistan territory until 30th September 1948 and that Indian notes would continue to be legal tender at Pakistan until 30th September 1948.500 in the undivided India. Out of the total branches of the nearly 3. It was only the Habib bank. financing in export of crops. 1947. The number of banking office in Pakistan came down to about 200 on 30th June 1948. Unfortunately. Branches of some European banks were also functioning in a limited manner.500 branches were existing in these areas. and their number was limited to about 20. As a result most of the banks in Pakistan were closed down and even those which were open were not doing any effective business. sufficient banking services were available in the areas forming Pakistan. which transferred its office from Bombay to Karachi .

which was in existence in the Pakistan territory at the time of independence. agent of the reserve bank of India also started closing down its branches in Pakistan. In view of these hopeless state affairs it was agreed between the two countries that reserve bank would serve as monetary authority in Pakistan only up to 30th June 1948. no heady way could be made on this behalf and reserve bank of India was in no mood to help the new country. Since the commercial banks were owned controlled by big business groups of the country it was feared that these banks would not maintain uniformity in their operational and would be instrumental to inflationary pressure. the considerations behind nationalization are  To form uniformity in the policy of the commercial banks so they may serve the best national interest. Imperial bank of India. Despite of best efforts on the part of government of Pakistan.  To make the operation of commercial banks highly sensitive and responsive to the policy of the government relation to financial matters. also Pakistan’s share of Rs.The Bank of Punjab Austral Asia bank was another bank.75 billion in cash balance was with held by bank. NATIONALIZATION OF BANKS The principle of nationalization of banks is to stream line the operation of commercial banks in such a way that it may be conductive to the development activities in process in the country. causing hardships to the newly born state. . Reserve bank also refused to advance money to Pakistan to make essential payments such as salaries etc. However.

It acts as an agent of the State Bank of Pakistan  To make the best use of the funds available at the disposal of these banks for the economic development of the country.The Bank of Punjab  To make the credit policy of the commercial banks more purpose full and effective especially in the development of economic sectors of the country.   To eliminate unhealthy and uneconomic competition among commercial banks. Public Sector Commercial Banks National Bank First Women Bank Limited The Bank of Khyber The Bank of Punjab Local Private Banks NBP FWB KB BOP Askari Commercial Bank Limited Bank Al-Falah Limited Bank Al Habib Limited Meezan Bank Limited Faysal Bank Limited Silk Bank Limited Soneri Bank Limited Union Bank Limited Muslim Commercial Bank Limited . To development strong money banks market in the country so that the value of currency may be maintained at stable level both in national facilities to exporter and agriculturists which have not been satisfactory in the past years.

which means a bench. Industrial Development Bank of Pakistan Punjab Provincial Cooperative Bank Limited It has not so far been decided as to how the word ‘Bank’ originated. G. this word is derived from the word ‘Bancus’ or ‘Banque’. Some author’s opinion is that. Zurich Mashreq Bank PJSC Oman Bank Barclays Bank Standard Chartered Bank Specialized Banks Zari Tarqiati Bank Ltd.The Bank of Punjab Allied Bank of Pakistan Union Bank Limited Foreign Banks ABN Amro Bank CITI Bank Habib Bank A. . It is therefore so much difficult to decide as to which opinion is correct. Others authors hold the opinion that the word ‘Bank’ is derived from the German word ‘Back’. which means joint stock fund.

of which 487 were located in West Pakistan alone. At the time of independence there were 631 offices of the scheduled banks in Pakistan. the necessity of a controlling or regulating agency or institution was naturally felt.1948 Thus a landmark was made in the history of banking when the State Bank of Pakistan assumed full control of banking and currency in Pakistan. The Govt. . forever since man came to realize the importance of money as a medium of exchange. There were 19 foreign banks with the status of small branch offices that were engaged solely in export crop from Pakistan. It is evident that the temples of the Babylon were used as ‘Banks’ because of the prevalent respect and confidence at the clergy. Consequently the Governor General of Pakistan Quaid-e-Azam inaugurated the State Bank of Pakistan on July 1. Similarly the Reserve Bank of India was not in the favor of Govt.The Bank of Punjab Banking in fact is primitive as human society. the customers of the banks are not satisfied with the uncertain condition of banking. Habib Bank. the number of officers of scheduled banks in Pakistan declined from 631 to 255. of Pakistan. and Australasia Bank. September 1948. The non Muslims started transferring their funds and accounts to India. Therefore the expert committee recommended that the Reserve Bank of India should continue to function in Pakistan until 30. while there were only two Pakistani institutions. could be settled between India and Pakistan. By the end of June 1948. of Pakistan decided to establish a full-fledge central bank. Perhaps it was the Babylonians who developed banking system as early as 2000bc. As a new country with resources it was very difficult for Pakistan to run its own banking system immediately. exchange etc. so that problems of time and demand liability. coinage currencies.

Exports and Remittances. Remittances. Attractive rates of profit on all types of deposits. performed the inauguration. . 1. The Bank of Punjab plays a vital role in the national economy through mobilization of hitherto untapped local resources. in pursuance of The Bank of Punjab Act 1989 and was given the status of scheduled bank in 1994. Financing. Lahore on November 15.1Company Background (History): The Bank of Punjab started functioning with the inauguration of its first branch of 7Egerton Road. 1989.The Bank of Punjab 1 Punjab Bank Limited-An Introduction: Established in 1989. Trade. opening of Foreign Currency Accounts and handling of Foreign Exchange business such as Imports. The Bank of Punjab is working as a scheduled commercial bank with its network of 272 branches at all major business centres in the country. The lending policy of Bank is not only cautious and constructive but also based on principles of prudent lending with maximum emphasis on security. promoting savings and providing funds for investments. As agriculture is considered as backbone of our economy the Bank of Punjab has introduced "Kissan Dost Agriculture Finance Scheme" to small farmers. The Bank of Punjab has indeed entered a new era of science to the nation under experience and professional hands of its management. The Bank provides all types of banking services such as Deposit in Local Currency. Client Deposit in Foreign Currency. and Advances to Business. Nawaz Sharif then. Industry and Agriculture. Trade and Industry for working capital requirements and money market operations are some facilities being provided by the Bank. the Chief Minister of Punjab. The architect of the bank Mr.

Industry and agriculture. the bank has not only carved out for itself prominent niche in the mainstream banking of the country but in certain areas it has the distinction of taking the lead. The Bank of Punjab was established under the provisions of Section 28 of Federal List included in the 4th schedule of the Constitution of the Islamic Republic of Pakistan 1973. Interestingly even such adverse circumstances growth of real sector during the preceding year registered a favorable change.  The services of the banks in the fact of severe competition have improved considerably so that now consumer are left with extensive choice to do or undo their business relations with these banks keeping in view quality of their services. and Advances to Business. Within the couple of years of its scheduling. The Bill to this effect was passed by the Provincial Assembly on July 3. which is the major vehicle not only for mobilization of resources to finance trade. both foreign and domestic are in addition. and industry but also for the effective conduct of monetary policy. The Bank was established under the Act of Punjab Assembly viz. which speaks of hidden potential and strength of economy Fortunately. agriculture. The emergence of new bank on the national scene in the early 1990s has done two important services to the nation. The Bank provides all types of banking services such as Deposit in Local Currency.  The saving base of the economy has effectively enlarged and hence the investment opportunities have increased. Trade. the banking sector of the country has the well organized and properly institutionalized system. Remittances. over long periods of time the gap in saving and investment and balance of trade deficit has posed serious threat to the target levels of growth The ailments related to the budgetary deficit and public debt. Client Deposit in Foreign Currency. The Bank of Punjab Act 1989. 1989 . . The Bank of Punjab is working as a scheduled commercial bank with its network of 266 branches at all major business centers in the country. The Bank of Punjab has the privilege to discharge its responsibilities towards national progress and prosperity.The Bank of Punjab In Pakistan.

by Governor Punjab in accordance with the Provisions of the Constitution on July 26. 1. 1. To carry on banking and credit business. 1989. 1. .. • • • • • • • • • • . and agriculture but its main emphasis is on accelerated development of agro-based industry. . To provide the highest rate of return to the shareholders by achieving good profitable growth. . To inspect.1 Corporate Vision: “To be a customer focused bank with Service excellence”. 1. To provide speedier services to the common man.2 Objectives: The Bank of Punjab being a commercial bank performs all those function as are attributed to such banking institutions both in the areas of resources mobilization and investment. trade. supervise and estimate credit of member societies.The Bank of Punjab and was passed to. Other objectives included. .2 Corporate Mission: • • To exceed the expectations of stakeholders by leveraging relationship with the Government of Punjab Delivering a complete range of professional solutions with a focus on programme driven products & services in the Agriculture and Middle Tier Markets through a motivated team. industry. To enter into financing contracts and to mobilize resources in local and now in foreign currencies consistent with the objects of the bank .3 Organizational Structure: . To help the growth of the cooperative movement. To afford financial assistance to members societies in such manner as may be necessary.3 Objectives: So the main objective of the bank is to channelize the resources into sectors.2.2. which have suffered from neglect. 1.2. It is providing funds for commerce.

any other responsible officer of the bank or a sub committee appointed by the board of directors. Board of Directors: 01 02 03 04 05 06 07 MR. SOHAIL AHMAD MR. Punjab Chief Auditor. SHAFQAT ELLAHI MR. general manager. Registrar. vice president. The board of directors may delegate all or any of the powers for proper and efficient conduct of the business of the bank to the president. ALMAN ASLAM MR.The Bank of Punjab Following members constitute the board of directors for general management of the bank. ANEEQ KHAWAR MR. JAVED MAHMOOD MR. SAJJAD HUSSAIN MR. Three nominated members by the Registrar Ex-Officio President Ex-Officio President Member Member The board of directors has 39 members. Punjab 34 duly elected members. Cooperatives. A nominee of the Federal Bank for cooperatives attends the meetings of the board of directors as observer. Cooperatives. The board of directors elect a vice president from amongst its members. one from each Distt. SHAFQAT MAHMOOD CHAIRMAN ACTING PRESIDENT DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR .

Muhammad Salim Mirza Mr.The Bank of Punjab BOP Management Mr. Qureshi Dr.4 Products or Services Offered: The products range is very wide and includes all the following points. 1.1(A) products: 1.R. Salman Saeed Mr.1.C. Shaheen N.4. & P Division General Manager IT Head Audit & Inspection Head Credit Policy Head Agriculture Credit Department 1.1. Moazzam M Maneka Acting General Manager HR General Manager Finance General Manager Operations General Manager Treasury General Manager Special Assets General Manager T. Feisal Azmat Khan Mr.4. Nadeem Amir Mr.1 Deposit products: • • • • • • • • • • Current A/C BOP Basic Banking A/C PLS Saving account Senior Citizens Saving Account Gharayloo Saving Account Ziada Munafa Saving Account PLS-Saving profit Plus Account Corporate premier Account Corporate premier Term Account Munafa Hi Munafa Term Account. Naveed Hafeez Shaikh Mr.4. Muhammad Hanif Mr.4. Sharjeal Masud Mr.1.III 1.2 -Profit and loss Sharing 1. Shahid A. Zia Mr.3 Loan products: .

The Accounts shall be opened with an initial/minimum deposit as stipulated by the Bank from time to time unless specifically exempted.1(A) products: 1.1-Deposit products: 1.4.The Bank of Punjab • Running Finance • • Demand Finance Cash Finance 1.1.1 Current Accounts: • The Accounts shall be opened upon submission of duly filled-in Bank’s prescribed Account Opening Form properly introduced in the manner provided and on submitting all such documents as may be revised by the Bank.4.1.4. The Bank reserves the right to demand such relevant documents even after opening of account as deemed necessary. A distinctive number shall be allotted to every account and this number should be quoted in all correspondence relating to the account and at the time of making a deposit or withdrawal. • The Bank has the right to refuse to open an Account without assigning any reason. intimation of change in the account number shall be sent to the account holder.4. The Bank reserves the right to change the Account Number or any part of it in order to meet its book keeping/administration requirement.2(b) Services: o Commercial Banking o Corporate and investment banking o Cas h management services o Utility bills o Lockers 1. • • . However.1.

be followed in case the guardian is appointed by the court. Deposit may be accepted from minors provided the account is opened and operated through a guardian. teller only shell authenticate the transactions up to the prescribed limits.1998) • The Accounts may be opened singly in one name or jointly in two or more names.11. ZAKAT is leviable on the assets as described in the Zakat & Ushr Ordinance 1980 (as amended from time to time) on balances which will fall within the definition of zakatable assets as notified by the Government of Pakistan on valuation date each year. The orders of the court will. • • All monies/instruments to be deposited in an account should be accompanied by a pay-in-slip showing the title and number of the account.06.The Bank of Punjab • (a) Account for the recipient of Zakat or recipient of grants from Bait-ul-Mall. The Account thus opened will continue to be operated upon by the guardian even if the minor attains the age of majority. The entry of transaction shall be authenticated by putting Bank’s stamp under the joint signatures of two officers of the Bank on the pay-in-slip and counterfoil thereof. however. maybe opened with an initial deposit of Rs.100/. the account may be closed without any notice and the balance will be remitted to the depositor at the address given by the Account Holder(s). provided Declaration (original/attested photocopy) for exemption from compulsory deduction of zakat is filed on the prescribed • . • Withholding Tax at the rate notified by the Government of Pakistan from time to time will be deducted out of profits payable to the Account Holders. However in case of branches where teller system has been introduced.(introduced vide Inst Cir#97/129 dated 25. • Where any account is not conducted to the satisfaction of the Bank. The necessary consent to this effect will be obtained at the time of opening of the account. • Withdrawals will not be allowed against postdated (payable on any future date) and stale (06 months after issuance date) Cheques and against un-cleared funds.1997 & Inst Cir 98/53 dated 03.

No fee (service charges) for maintaining such accounts will be charged. • Account holder will be allowed a maximum of 2 deposit transactions and 2 checking withdrawals. . The facility for conversion into BBA will be provided free of charge. there balance in BBA's remain "NIL" for a continuous 6 month period. free of charge either through cash/through clearing per month otherwise service charges of a regular banking account shall be applicable for that month as per Bank's Schedule of Charges.1000.2 Basic Banking Account: The minimum initial deposit will be Rs. There will be no limit for maintain minimum balance.1. he / she may kindly contact the branch where his / her account is being maintained. • • • No profit will be Payable. • The branches shall ensure completion of all the formalities required by State Bank of Pakistan vide Prudential Regulation No.The Bank of Punjab proforma (CZ-50) in the prescribed manner one month preceding the valuation date except in the case of newly opened accounts. such accounts will be closed. In case of withdrawals from BBA though the ATM Machine of other Banks.4.1. • Unlimited free of charge ATM withdrawals from Bank's own ATM's will be allowed. Note If any existing customer desire to get his regular banking account converted into Basic Banking Account. the Charges of these Banks shall be applicable for such transaction.M-1with regard to KNOW YOUR CUSTOMER. In the cases. 1.

The Accounts shall be opened with an initial/minimum deposit as stipulated by the Bank from time to time unless specifically exempted. A distinctive number shall be allotted to every account and this number should be quoted in all correspondence relating to the account and at the time of making a deposit or withdrawal.1 PLS Saving Account: • The Accounts shall be opened upon submission of duly filled-in Bank’s prescribed Account Opening Form properly introduced in the manner provided and on submitting all such documents as may be revised by the Bank. however. The orders of the court will.06. maybe opened with an initial deposit of Rs.4.1.4. • • • (a) Account for the recipient of Zakat or recipient of grants from Bait-ul-Mall.1997 & Inst Cir 98/53 dated 03. The necessary consent to this effect will be obtained at the time of opening of the account. The entry of transaction shall be authenticated by putting Bank’s stamp under the joint signatures of two officers of the Bank on the pay-in-slip and counterfoil thereof.2 -Profit and loss Sharing: 1.The Bank of Punjab 1. be followed in case the guardian is appointed by the court. The Bank reserves the right to change the Account Number or any part of it in order to meet its book keeping/administration requirement.1998) • • The Accounts may be opened singly in one name or jointly in two or more names. • All monies/instruments to be deposited in an account should be accompanied by a pay-in-slip showing the title and number of the account.100/. However.(introduced vide Inst Cir#97/129 dated 25.2.11.1. The Bank reserves the right to demand such relevant documents even after opening of account as deemed necessary • The Bank has the right to refuse to open an Account without assigning any reason. However in case of . The Account thus opened will continue to be operated upon by the guardian even if the minor attains the age of majority. Deposit may be accepted from minors provided the account is opened and operated through a guardian. intimation of change in the account number shall be sent to the account holder.

teller only shell authenticate the transactions up to the prescribed limits. Associations. 1/. the account may be closed without any notice and the balance will be remitted to the depositor at the address given by the Account Holder(s). profit accrued even for Re. Where any account is not conducted to the satisfaction of the Bank. Companies. with the Bank’s prior approval. • • PLS Savings Accounts may also be opened by charitable institutions. . Societies. no recovery or payment of profit as a result of increase/decrease in the rate of profit will be affected upon such A/C holders after announcement of half-yearly profit rates by the Bank. Autonomous Corporations.The Bank of Punjab branches where teller system has been introduced. for Provident Funds and other funds of Benevolent nature by Local Bodies. The rates of profits may vary from period to period viz January to June/July to December each year. However. Calculation of Profit on PLS Saving Accounts will be made for each calendar month on the lowest credit balance of an account between the close of the 6th day and the last day of the month. Educational Institutions. • Withdrawals will not be allowed against post-dated (payable on any future date) and stale (06 months after issuance date) Cheques and against un-cleared funds. Firms etc. However. When an account is CLOSED before declaration of profit rates. • Profit payable or Loss recoverable on PLS Saving Accounts to be credited or debited will be determined by the Bank at its sole discretion on the basis of its net working results at the end of each half-year within the time prescribed by SBP from the date of the close of the half-yearly books of accounts of the Bank. the accrued profit will be first credited in the account at the profit rates previously declared by the Bank. and in all other cases where such accounts are required to be opened under the orders of Competent Court of Law • Not more than one PLS Savings Account may be opened at a branch in any one name except in the name of a parent or guardian for more than one child or for keeping funds of specified nature category by an entity.after deducting withholding tax will be payable to all Account Holders.

2 Senior Citizens Saving Account: This is a saving bank product available for all senior citizens i.2. The account can be opened singly or preferably jointly (husband & wife) provided either of them is of 60 years or above. account maintaining charges shall be levied as per Bank’s Schedule of Charges.M-1with regard to KNOW YOUR CUSTOMER 1.000/-. However in case average deposit during the month falls below Rs. • ZAKAT is leviable on the assets as described in the Zakat & Ushr Ordinance 1980 (as amended from time to time) on balances which will fall within the definition of zakatable assets as notified by the Government of Pakistan on valuation date each year. the Bank reserves the right to recover & forfeit the profits paid or not to give any profit. innovative incentives and Higher rate of profit to senior citizens The Main Features are: • A customer can open only one BOP Senior Citizens Saving Account singly or jointly regardless of the branch. In case it is found out that more than one account exists under this category. • The account can be opened with a minimum initial deposit of Rs.10. This product is designed to attract procure deposit/savings of senior citizens by offering attractive.1.4.e. provided Declaration (original/attested photocopy) for exemption from compulsory deduction of zakat is filed on the prescribed proforma (CZ-50) in the prescribed manner one month preceding the valuation date except in the case of newly opened accounts.10. • The profit slab is as follows: . • The branches shall ensure completion of all the formalities required by State Bank of Pakistan vide Prudential Regulation No.The Bank of Punjab • Withholding Tax at the rate notified by the Government of Pakistan from time to time will be deducted out of profits payable to the Account Holders. persons of 60 years and above who are eligible to open a saving account as per our Bank’s criteria.000/-.

001 upto 500.000. • *This product is governed under PLS rule of Profit & Loss sharing system.0 % p. The rates mentioned are expected and the Bank reserves the right to review/revise the profit rates quarterly.001 upto 400.001 upto 200. Deposit can exceed Rs. • The profit will be calculated on monthly basis based on the minimum monthly balance maintained by the customer during that particular month.400.a. The profit will be credited on monthly basis in the respective account. Withholding tax will be deducted from the profit as per law in force Preferably PLS SB joint a/c should be opened with special instructions of “Either or Survivor” which must be jointly authenticated under full signatures of the Joint A/c holders. • • • • • • Unlimited transaction (debit/credit) Free complimentary issuance of first ATM/Debit Card Free complimentary issuance of first Cheque Book of 25 leaves . Profit once disbursed will not be recovered in case of decrease in rate at the time of announcement of Half Yearly profit rates. 0 upto 10.a. However in case of rise in profit rate the difference amount will be paid.000/-.000/Rs.500. 8 % p. • • • • Existing senior citizen account holders can also open account under this scheme.a. • Maximum profit @ 8.200.but no profit will be paid on amount over and above Rs. 7 % p.a.000/Rs. as per different slabs shall be paid on minimum monthly deposit upto Rs.The Bank of Punjab Minimum Monthly Balance Rs.000/Rs. same may be allowed without deducting account closure charges Zakat will be deducted as per law like any other saving/profit bearing account.000/.500.10.000/- * Expected rate of profit Normal PLS SB rate 5 % p. In case they wish to close their existing PLS or other account.500.

The Bank of Punjab • 25 % reduction in rental charges of small or medium locker subject to availability.

Priority banking especially in utility bills payment, counter service etc

The product carries all characteristics/conditions pertaining to PLS SB account i.e. issuance of DD/TT/MT/PO etc as per Bank’s Schedule of Charges except payment of profit which shall be paid on monthly basis on minimum monthly deposit upto Rs.500,000/- only as per admissible rates shown against each minimum monthly balance. 1.4.1.2.3 Ziada Munafa saving Account: This is a saving bank product available for general public i.e. persons who are eligible to open a saving account as per our Bank’s criteria. The account can be opened singly or jointly. This product is designed to attract procure deposit/savings of general public particularly salaried and small investors.

A customer can open only one BOP Ziada Munafa Saving Account singly or jointly regardless of the branch. In case it is found out that more than one account exists under this category, the Bank reserves the right to recover & forfeit the profits paid or not to give any profit.

The account can be opened with a minimum initial deposit of Rs.10,000/-. However in case average deposit during the month falls below Rs.10,000/-, account maintaining charges shall be levied as per Bank’s Schedule of Charges.

The profit slab is as follows:

Minimum monthly balance Rs. 0 upto 10,000/Rs.10,001 upto 200,000/Rs.200,001 upto 400,000/Rs.400,001 upto 500,000/-

* Expected rate of profit Normal PLS SB rate 4.0 % p.a. 5.0 % p.a. 7.5 % p.a.

The Bank of Punjab This product is governed under PLS rule of Profit & Loss sharing system. The rates mentioned are expected and the Bank reserves the right to review/revise the profit rates quarterly.

Maximum profit @ 7.5 % p.a. as per different slabs shall be paid on minimum monthly deposit upto Rs.500,000/-. Deposit can exceed Rs.500,000/- but no profit will be paid on amount over and above Rs.500,000.

The profit will be calculated on monthly basis based on the minimum monthly balance maintained by the customer during that particular month. The profit will be credited on half yearly basis in the respective account as per rules of PLS SB. Existing account holders can also open account under this scheme In case they wish to close their existing PLS or other account, same may be allowed without deducting account closure charges Zakat will be deducted as per law like any other saving/profit bearing account. Withholding tax will be deducted from the profit as per law in force. Preferably PLS SB joint a/c should be opened with special instructions of “Either or Survivor” which must be jointly authenticated under full signatures of the Joint A/c holders.

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Unlimited transaction (debit/credit) Free complimentary issuance of first ATM/Debit Card.

The product carries all characteristics/conditions pertaining to PLS SB account including payment of profit on half yearly basis i.e. issuance of DD/TT/MT/PO etc as per Bank’s Schedule of Charges on minimum monthly deposit upto Rs.500,000/- only as per admissible rates shown against each minimum monthly balance.

1.4.1.2.4 PLS-Saving Profit Plus Account

The Bank of Punjab • Individuals, corporations, organizations and various provincial / federal government departments can open accounts under the scheme.
• • •

This is an operating/checquing 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. Average balance during a calendar month will be taken to determine the deposit slabs and applicable profit rate for that month for the purpose of creating provisons. However, in case the average balance in any month falls below Rs. 1(M) being the minimum slab, the account for that particular month will be treated as an ordinary Pls-sb account and profit will be calculated on minimum balance during the month at the normal rate declared for Pls- sb account.

Profit payable on half yearly basis.

1.4.1.2.5 Corporate Premier Account: • • • This account has been introduced for corporate clients. This is an operating/checquing account Profit on the account will be calculated on daily product basis by determining the slab on the basis of average balance maintained in the account.

6 Corporate Premier Term Account This account has been introduced for corporate clients.1.4. Profit payable at maturity .2. • • • • This is non operating/checquing account Minimum amount of investment is Rs. The deduction of Zakat and Withholding tax will be applicable as per law of the land.The Bank of Punjab • The deduction of Zakat and Withholding tax will be applicable as per law of the land • Profit payable on monthly basis 1.500(M).

1.1 Running Finance .00 % 7. to 10.75 % 10.The Bank of Punjab 1. the rates mentioned are expected and the Bank reserves the right to revise the rates and terms & conditions of profit under Profit & Loss sharing system.50 % Minimum amount of Deposit Rs.25 % 10.00 % 8.000/100.e.000/100.0 % p. depending on the tenure which is higher than Bank’s normal term deposits as follows: Term *Expected Profit 1 month 3 months 6 months 1 year 2 years 3 years 4 years 5 years Rates p.7 Munafa Hi Munafa .III This is a term deposit product.a.1.000/-.583 Rs.40 % 10.667 Rs. The term is from 1 month to 5 years and the profit is paid on monthly basis.4.3 loan products 1.854 Rs.000/100. 100.100.a.00 % 10.000/100. The rate of profit is from 6.00 % 9.000/100.50 % p.4.875 This product is governed under PLS rule i.2.a.000/100.500 Rs. 1.833 Rs. The minimum amount of deposit is Rs.4.000/Profit payment on monthly basis (With Holding Tax to be deducted) Rs.1.3.000/100. 6.867 Rs.813 Rs.

The Bank of Punjab • Against pledge of shares • • Governments securities Hypothecation of stock 1. Advance to finance . The facility is required to be adjusted periodically or within the period as specified in the Sanction Advice/DAC.1. Take exposure on any limited company against the shares/TFCs of that company or its group companies. Unless otherwise adequately secured by other acceptable collaterals. Take exposure on any one person (whether singly or together with other family members or companies owned and controlled by him or his family members) against shares of any commercial bank/DFI in excess of 5% of paid up capital of the share issuing bank/DFI. Take exposure against the non listed TFCs or the shares of companies not list eon the Stock Exchange(s). banks are required to refrain from extending loans to the market players who are engaged in speculations for short term “Gains”. Take exposure against sponsor director’s shares (issued in their own name or in the name of their family members) of banks/DFIs. Provide unsecured credit to finance subscription towards floatation of share capital and issue of TFCs. Take exposure against the shares/TFCs of listed companies that are not members of the Central Depository System.1 Against pledge of shares: This facility is generally extended to companies or individuals on selective basis against pledge of tangible securities such as Shares. Given that Stock Market in Pakistan is volatile. Take exposure against unsecured TFCs or non rated TFCs or TFCs rated below ‘BBB’ or equivalent. Such financing is supportive to secondary Capital Market concept.1. consequently rendering facility to non-performing ultimately. POLICY: Advances against shares shall not be allowed to: Take exposure against the security of shares/TFCs issued by them. which quite often they fail to make.3.4.

shall be subject to a minimum margin of 10%. Advances Department Head or RCAD shall conduct a monthly review of financing against shares and exercise vigilance over: Market Rates of pledged shares. which may at the discretion of the Bank be set higher. is not allowed.3. Financing shall be allowed against shares registered in the name of “Borrower”. the letter of lien shall be signed by the Third Party and not by the Borrowers.  Their marketability. Exposure against Shares of Listed Companies shall be subject to minimum margin of 30% of their current market value as per prevalent Prudential Regulations. in terms of the Prudential Regulations the Bank shall monitor the margin on at least weekly basis and shall take appropriate action for top-up and sell out. However. towards floatation of “Share Capital” of public limited company. as disclosed in their balance sheets. 2. Loans exceeding Rs. however in case the shares tendered for pledge are registered in the name of a “Third Party”. MINIMUM MARGIN REQUIREMENTS : 1.2 Government Securities: . on the basis of approved Credit Policy and prior written authority from the borrower. 500. 1. Exposure against TFCs rated “A” and above.3. 30% of un-impaired equity of Bank for fund based and non fund based subject to condition that the maximum outstanding against fund based exposure doest not exceed 20% of Bank’s equity) and supported by positive CIB/DFIs confidential reports.1.4.000/(Total Accommodation) shall not be more than 10 times of Borrowers’ Equity i.e. Advances approved shall be within “Per Party Limit” (i. under Credit Policy.e.The Bank of Punjab “Subscription”. while the exposure against TFCs rated “A-” and “BBB” shall be subject to a minimum margin of 20%. by State Bank of Pakistan approved Credit Rating Agency. Capital and Reserves minus losses and 04 times in case of fund based facility.  Dividend/Bonus declarations etc.

Documents complete in all respect duly vetted by Bank’s legal counsel signature verified shall be obtained ensuring their validity in a “Court of Law”. 1. 2. even if 100% covered by cash or collateral.The Bank of Punjab Government Securities include Defence Saving Certificates (DSCs). as agreed. Banks also extend credit facilities against pledge of “Deposit Certificates” or other instruments of value issued in the name of Individuals.3. however have a legal Charge/Lien established. Joint Holders Public Bodies. and Firms. which at the moment are restricted to Maximum of Rupees One Million and are subject to change. Signatures shall be verified in pencil on each document. issued by National Saving Centre Government of Pakistan/National Investment Trust. which are yielding better return compared to placements with Commercial Banks. POLICY 1.1. Special Saving Certificates (SSCs). while recommending a credit proposal to credit committee. US Dollar Bonds & NIT Units etc. Banks in such cases although do not have a physical custody of the goods. in the event the borrowers default to repay the loan or fail to meet their obligations. issued by various Government regulated Investment/Saving Organizations. This is apt to create liquidity constraints in the Financial Balance Sheet of the customer. thereon. Large amount of funds representing “Provident Fund”. Behbood Certificates.3 Hypothecation of Stocks Industrial organizations have to invest a large sum of money to build stocks of raw material to up keep their manufacturing line. All Credit Financing against pledge of Securities require Credit Limit approved by Credit Committee. Regular Income Certificates (RICs). Benevolent Fund collections are invested in the Government Securities.4. which is care fully assessed by Risk Managers. Criteria to merit this facility is provided in the Banks Credit Policy Manual. .3. providing a legal recourse to the Bank to take custody of the stocks. To manage such financial gaps/shortfall in their cash flow they usually resort to borrowings from Banks against Hypothecation of raw material/semi or finished goods held by them in their stocks.

who shall advise the borrowers to cover the shortfall by additional stocks or adjust the facility accordingly.Stock Reports. Limits are adjusted by CAD in the system in accordance with the Drawing Power worked out each time a stock reports is received and value of stocks reassessed by applying latest Pricing Index. and as spelled out in the Credit Policy Manual with the exceptions given below:2. 1. A formal charge on the property is established and recorded with the Registrar Land and Property termed as registered mortgage. Formal charge (First/Second/Pari Passu) is created in the name of the Bank.Negative Variance between the net value of stocks (i. Advances are also made against equitable mortgage of .Advances against hypothecation of goods is subject to the policies as applicable to other loans.2 Demand Finance Credit facilities extended against registered mortgage of property (i. POLICY 1.1. Goods offered are not perishable. 3.4.e.The Bank of Punjab Some of the basic requirements are as follows which are included for general understanding of the Processing Officers at Branches/CAD:• • • • • It shall be ensured that the borrowers have absolute title to the goods and the same are not encumbered or previously hypothecated to any other Bank. or have short expiry period and do not warrant special storing. Stocks under hypothecation are not restricted by SBP/Government as a policy to maintain market supply.e. land/buildings constructed or to be constructed) is by nature classified as a Secured Advance. duly signed by borrowers. are received periodically at a frequency as spelled out in the DAC/Credit Proposal etc. Stocks offered for hypothecation are easily marketable and its price is not highly fluctuating.3. otherwise the Bank retains higher margin. market value less margin) and the outstanding advance shall be reported to the relationship/Risk Manger.

however in rare cases DAC shall be issued where some of the secondary nature documents are not received for acceptable reasons and that the deferment is approved for a specified period by the level of the authority as given below: 1. NOCs from the senior Charge Holders shall be obtained before registration of charge with SECP. 2. In case the Finance is allowed to Limited Companies. or on classification of the advance to “Non-Performing” the Bank has a legal recourse to apply for a decree in a court of law. In case of borrower’s failure to liquidate the obligation. are deposited with the Bank as Security and the charge is registered with the Registrar SECP.The borrowers hold an absolute un-encumbered title to goods. However.3. in terms of Credit Policy. if required further shall require appropriate level of credit approval. Under this type of financial accommodation the facility amount is disbursed in specially opened account for the purpose.DAC issued where receipt of some of the documents is deferred shall clearly highlight the deferment approval and the period of deferment. CAD shall issue DAC only when charge Documents & Securities as spelled out in the Sanction Advice have been received and lodged in the safe vault. The pledged goods are released to the borrower against cash payment only. whereby the original title Deeds. 1. shall be recorded with the Registrar Securities & Exchange Commission of Pakistan (SECP). our charge (Pari-Pasu or ranking) as approved by Credit Committee.3 Cash Finance This facility is generally provided against pledge of goods.1. In case the goods pledged are seasonal in nature. where the original title documents of Land/Building and other Fixed Assets are held by the senior charge holders. to sell off the mortgaged property through auction as ordered by the court.Formal approval for deferment of specified documents from Credit Committee shall be necessary. Extension in the deferment period.The Bank of Punjab property. in case of Pari-Pasu Charge. POLICY: Facilities are disbursed or allowed to be availed by the customers only on receipt of a formal DAC issued by RCAD & duly signed by CAD Head. 3.4. the customer would be required to adjust .

This Group’s emphasis will be to meet necessary business needs of customers which are numerous as compared to CIB clients but their individual credit requirements are relatively much smaller. repositioning of resources and active marketing to improve Bank’s profitability.The Bank of Punjab the facility before the season ends. In view of this peculiar nature of this business segment that . Easily marketable and their price is not highly fluctuating. Commercial Banking will deal with customers having sales turnover and aggregate credit exposure as per benchmarks prescribed in the SBP’s Prudential Regulations.4. If so higher margins shall have to be approved & retained Where variation in pricing is observed during periodic evaluation. Rollover shall not be allowed. • • • 1. Commercial Banking The Commercial Banking Group has been formed to cater the needs of small & medium size customers for increasing Bank’s business significantly with clear focus.P.1 . the customer shall be advised to make good the shortfall in the D. the major of them are as follows: 1.2. Where variation in pricing is observed during periodic evaluation. do not require special Storing arrangements/conditions and have short expiry period. the customer shall be advised to make good the shortfall in the drawing power. Policy:Basic criteria to qualify for advances against pledge of goods is as follows:• • • • Facility is disbursed in specially opened CF A/C for the purpose It shall be ensured that Goods tendered for pledge are:Free from credit restrictions imposed by State Bank of Pakistan Not perishable.2(B) Services: The services that The Bank of Punjab extends to its customers throughout the country are very extensive.4.

The benchmark for Corporate Banking clients would be as per criteria laid down in the SBP’s Prudential Regulations. Structured Finances. competitive pricing and wide product range to valued corporate clients including the Multi National Companies (MNCs). Acquisitions and other products. Equity Underwriting. Equity Placements. 1. IPOs. This Unit taking advantage of tremendous growth potentials of corporate accounts will continue its endeavour to remain a major contributor to Bank’s earnings. The SME will concentrate on rebuilding its set up which suits to its peculiar needs on all locations.3 Cash management services Cash Management is a process of collections & payments on behalf of the Customers using the Bank Network. Investment Banking Unit offers full spectrum of services. The human resources of CIB shall be beefed up by inducting adequate number of professionals and approval process streamlined by installing credit committees of various tiers at all Regional locations. which include TFCs.2.The Bank of Punjab involves a higher turn over a much wider network is needed. The objective is to facilitate organizations with multiple collection points in gathering Cash / Funds and making them available in the customer . Mergers. IBU will either lead or participate in the major TFCs in the market. Independent Advice. 1.2. Corporate Restructuring. Investment Banking: IBG specialises in providing innovative and unique advice to its clients to assist them in meeting challenges in an ever-changing market. IBU shall also work on and come up with providing Fund Management Facilities. The Unit shall be equipped with experienced professionals. QuasiEquity Products.2 Corporate and Investment Banking This group performs its functions through its following two units: Corporate Banking: The Corporate Banking shall endeavour to market new clients and retain the existing relationships and build market share through offering superior services. Project Finance.4. Syndicated Finances. Leveraged Buyouts.4.

2.2.The Bank of Punjab operating Account.6 ATM network: The Bank of Punjab Debit Card could be used in an 1-Link network as well as in M-Net network. Medium and Large on an annually fee with one time Security Deposit respectively to the size of locker.4. This should be accomplished with minimal supervision by the customer.2. Similarly it facilitates disbursement of frequent and or Bulk payment to multiple locations..4. Locker holders need to have an account in the Bank. Customers are advised to use 1-Link network. 1. 1. In Pakistan.5 Lockers The Bank of Punjab Lockers are available in three different sizes Small. Gas and Telephone from customer. 1.4. supported by an automated system to provide timely and requisite MIS / Reconciliation under agreed Service Levels. Utility bills The bank collects all kinds of utility Bills including Electricity.4 . All Branches of the Bank collect Utility Bills during banking hours which are paid through cash and cross checks. the 1-Link ATM facilities can be availed at any of the following banks and locations: • • • • • • • • • • • • • ABN-Amro UBL Allied Bank Askari Commercial Bank Bank-al-Habib AlBaraka Islamic Bank Atlas Bank Bank Alfalah Limited Bank Islami Dubai Islamic Bank Faysal Bank National Bank of Pakistan Picic Commercial Bank .

The Bank of Punjab • My Bank • • • • • • • • Cresent Bank Emirates Global Islamic Bank Dawood Islamic Bank KASB Bank Standard Chartered Bank Soneri Bank Tameer Microfinance Bank NIB Bank and Mezzan Bank 1.4.7 Online Branch Network: Online Banking facilities are available to customers maintaining accounts at all online branches across the country. The following facilities are available: • Cash Deposit for immediate credit to remote branch • Remote Cheque Encashment from any online branch • Instant Funds Transfer between any 2 online branches • Remote Balance Enquiry and Statement of Account .2.

and get good working experience. The branch is working under the experienced hands of Branch manager Mr. The staff is very efficient here and deals the transactions of big business houses and public sector organizations on daily basis by providing them efficient and timely services. • • • • Cash Department Clearing Department Bills/ Remittance Department Account Opening Department . Duration of my internship at Punjab Bank Limited Bhakkar Branch is from 01-07-2008 to 20-08-2008. I decided to take up Punjab bank Limited for my internship because I really like to work in banking sector.First of all Punjab bank call me to work as an internee in Bank of Punjab. During my internship I am able to learn practical aspect of business. So in order to learn more this was my choice.The environment of the Branch is quite friendly and with the introduction of new customer logo it has further been improved which states that keep smiling.Bhakkar branch has the following departments on which it works or more precisely it performs the different functions in the following departments.1.And in Bhakkar there is no other opportunity to do internship.And I have also a reference in Punjab bank. My objectives are to analyze banking operations. As it is a large branch situated in the center of the city and serving mainly corporate and commercial clients so almost all the necessary banking functions are performed in this branch. Internship Duration and Rationale for Selection: The purpose of internship is to work in real life and to apply management skills.The code of the BOP Bhakkar Branch is 044.I apply in some banks. Near about 250-300 customers daily comi in the BOP Bhakkar branch. Muhammad Ibrahim Sheikh and operation manager Mr Sajjad Haider.The Bank of Punjab Chapter 2 Learning and Experience 2.

Abdul Rauf Mr. Ahmad Sher Mr.Iman Zad Mr. Imran Mr. internship program is an important part to give student an opportunity to have experience of practical field.2. Sajjad Haider Mr. Unless and until the student experience the novelty of practical work.2 Task Performed (b) .The Bank of Punjab Following is the management team in the Bhakkar Branch.2 Details of Training department wise/Tasks performed: Although the operations of a single bank are very wide but the branch in a specific location do not provide all those services and functions as per the requirement of the area or the customers residing in that area. Shehzad Mehmood Designation Branch Manager Operation Manager Agri credit officer(ACO) Agri credit officer(ACO) Cash officer Cash officer Junior officer Junior officer Cash Teller Cash Teller System Administrator In masters of business administration. Sumair Ahmad Mr. As an internee. Zaheer Shah Mr. Muhammad Ibrahim Mr.2. Name Mr. 2. I performed some tasks which are as follows: 2. The most important point is internship program is that the student should spend their time in a true manner and with the spirit to learn practical orientation of theoretical study of framework.1 Task Performed (a) : 1 Account of customer 2 Account opening 3 Miscellaneous 2. Imtiaz Ahmad Mr. their knowledge of what they study in theoretical courses remains incomplete. Ulfat Hussain Mr.

2.1 Task Performed (a) : First of all I performed some tasks related to the accounts.I f a person is employee somewhere he or she will have to produce the evidence of employment. Introduction and preliminary investigation the bank should check the customer’s integrity respectability occupation and the nature of the business. Negligence in this record may cause serious consequences for the banker.S card will also appear on all his cheques to express the authority for the payment of cheques drawn on his banker.1.S card is signed by the customer when account is opened. Clearing house 3.The Bank of Punjab 1. A person becomes a customer after he or she open an account with the bank. A banker make certain inquiries before opening a person’s account. Lockers 2. If the signature does not match with the specimen the banker can return the cheque unpaid Types of account . verify it from the NADRA. According to KYC the banker will obtain the CNIC in original.1 Accounts of customer Account opening is the establishment of banker customer relationship. Deposit/withdrawl of cash 2.I understand the procedure of account opening and the minimum requirements which are needed to open an account. The signs on S. Muhammad Ibrahim. 2.2. I started my internship training from accounts opening department and spend 3 weeks in it. In case of a business person evidence of such business will be provided Specimen signature card S.I come to know that what are the accounts of customer and what are the documents required for this. SBP has laid down the know your customer policy. In Bhakkar Branch accounts department is under the supervision of branch manager Mr. SS card generally bears the name account and the signature of the customer.

Both right and left thumb impression are obtained on the SS card if the customer cannot sign at all. They must disclose the nature of the business. However bankers avoid opening an account of an illiterate pardanashin women due to the problem of identification and verification of thumb impression 2.1.1.3 Joint account account|: These are the accounts of two or more persons.1.4 Partnership account: A partnership account can be opened in the name of the firm and signed by all the partners.1 Illiterate person account: An illiterate person who cannot read or write in English or Urdu can open a bank account.2.1. the names and addresses of all the partners and those who are authorize to operate that account Documents required: Individual or Joint account holders: • • • CNIC Affidavit or declaration in case of zakat deduction Copy of service card or letter from employer .1.2.2.1.3 passport size photographs are obtained one is pasted on the form and the other is pasted on the SS card and 1 on the cheque book.The Bank of Punjab 2. The mandate given to the one or more persons to operate the account will be automatically revoked on the death and insolvency 2.1.1. The banker will obtain clear instructions whether one or more of them shall operate the account .A literate pardanashin woman can open and operate her account through her signatures.2. Any one of the joint account holder can stop payment from the account but the removal of stop payment instruction should be signed by all the account holders. He or she must affixed the thumb impression in the presence of the authorized officer of the bank who will verify him her from the photograph and confirm the thumb impression 2.2 Pardanashin women account: A household women whether observing purdha or not is known as pardhnashin women she must bear a photograph on the NIC.In the absence of such instructions the bank will pay on the signatures of all the joint account holders.

The Bank of Punjab • S. Basically I think that the opening of an account is the establishment of a contractual relationship between the banker and the customer. By .2 Account Opening: During the span of my internship in BOP I learned and observed a lot of about the opening of an account.S card Sole Proprietorship • • • Attested CNIC Copy of NTN certificate Request letter on company’s letter head Partnership/club/society: • • • • • • • • • • Attested CNIC Attested copy of partnership deed Registeration certificate of firm If firm is unregistered than it should be clearly mentioned on the account opening form stamp of the firm Authority letter in original in favour of the person authorized to operate the account of the firm Certified copy of registeration Certified copy of rules and regulations Certified copy of resolution Copy of NTN certificate Limited company accounts: • • • • • • • • Certificate of incorporation Certificate of commence business Memorandum of association Articles of association List of directors Copy of board resolution CNIC copies of signatories Copy of NTN certificate 2.1.S card • Cheque book order form • Particulars of CNIC in printed form confirmed from NADRA • Declaration if signature differ from the S.2.

2.1. Further I am going to express the basic requirements and steps involved in the opening of an account. 2.3 How to Open an Account: Before opening an account in BOP. .2.2. Negligence in this informal preliminary investigation may result in serious consequences not only for the banker concerned directly but also for other bankers and the general public who may be affected indirectly. Banker should establish true identity by way of obtaining proper introduction of the customer. 2. Careful analysis of new customer is required to prevent all possible chances of fraud and forgery. Account opening is the most sensitive portfolio.2. Customer has to accept the terms and conditions for account opening. Any party can file a suit in a court of law for breach of contract. • • • • • • • • It is a basic contract between banker and customer. • Another account holder of the bank should properly introduce the new customer. Then BOP determine the prospective customer’s integrity. 2. occupation and the nature of business by the introductory references given at the time of account opening.2 Account Opening Form: • • • For Business Customers.2.1. I observed that the following points must be considered in this regard.2. Both parties have rights and obligations to each other. a person becomes a ‘customer’ of a bank. For individual Customers. respectability. It should be handled with due diligence.The Bank of Punjab opening an account at a bank. For Additional Accounts.1.1 Brief Introduction of the Customer: Before opening an account BOP as like the other banks in Pakistan ascertain whether or not the person who is going to open the account is a desirable customer or not.

Cheque book requisition form. Certified true copy of the certificate of incorporation or registration (in case of limited companies & registered bodies only). 2. Allot account number. • Each account shall be allotted a distinct number that is to be quoted in all correspondence with the bank relation to the account.2. Partners.1. Introduction on AOF. Admittance of signature. Against submission of the Bank’s prescribed application form. The Bank reserves to itself the right to refuse to open and account without assigning any reason.4 Account Opening Procedure: • • • • • • • • • • Obtaining account opening form.C. Obtaining signatures on specimen signature card. Directors and office Bearers as the case may be.2.2.I. duly introduced in the manner provided and on supplying such document. Proprietor.2.1.The Bank of Punjab • The account holder should sign the account opening form in the presence of bank officer and the signature is duly verified. Attested photocopy of N. SS card to CD department. • • A copy of identity Card is required by Bank./Passport of Account Holder(s). 2. . • Minimum amount to open an account is required regarding the nature of account.5 Requirements for Opening of Account: • • • Duly filled prescribed A/C opening FORM. AOF TO CD department. as may be required and account may be opened. Obtaining copy of computerized national identity card. Depositing cash on counter.

Certified true copy of rules and regulations or By-Laws (in case of association etc.).6 Requirements for Fulfilling the Account Opening Form: According to my practice in BOP. Certified true copy of the resolution of the Board of Directors/Managing Committee/Governing Body regarding conduct of the account. • • • • • Certified true copy of the memorandum and articles of association (in case of limited companies). Address & Signatures Special instruction regarding the account .2. which is necessary to be known by the bank. when a customer wants to open an account.2. The bank also requires the essential documents to be attached by the customer. the bank officer gives him an application form. • • • Title of Account Full Name of Applicant Occupation • • • • • • Address Telephone No. List containing names and signatures of the Directors/Office Bearers duly certified by CLA/Registration Authority.The Bank of Punjab • Certified true copy of the certificate of commencement of business (in case of public limited companies only).1. 2. Letter of partnership or certified copy of partnership deed (in case of partnership). Currency of account Nature of Business Introducer’s Name. Basically following information is required to open an account with BOP. are requirements of the application form. All information.

1.7 Eligibility: • • All Pakistani’s Resident/Non-Resident. person should also write his full name & address.The Bank of Punjab • Initial Amount of the Deposit • Signature of the applicant 2. fifty or hundred leaves. Individuals (Single-Jointly) Companies/Firms etc.1. 2. This slip is duly filled and singed by the customer. Checking account No profit is paid. The signature of the customer is verified by the bank and new cheque book is issued to the customer and serial numbers of the cheque are duly entered in the book of the bank.2. The cheque book also carries a requisition slip for the issuance of the new cheque book. may ask the bank to stock as number of cheque books in their name and to point their name on these cheque books. twenty five.1000/.2.2. There is no restriction for withdrawals of amount and number of cheques.2.2.8 Features: • • • • • Account can be opened with Minimum Balance Rs. the first cheque book is given to the customer only when all the required documents are checked. 2.with no maximum limit. The officer keeps . I observed that when an account is opened then a cheque is issued to the customer for drawing his money as per rules. Usually only one cheque book is issued at a time. Statement of Account dispatched on quarterly basis or as requested.2. A cheque book contains ten. Along with the signature. however big concerns who need a number of cheque books at a time. Any Foreign National Individuals (Single-Jointly) having valid Resident Pakistan VISA/Work Permit can open and operate the Account. can open and operate the Account. However. When a customer opens an account with the bank. he is provided with cheque book for withdrawals from account.1.9 Issuance of Cheque Book: During my period of internship in BOP.

If the customer is the account holder. 2. The DD leaf is to filled carefully and after filling it.1. on account of a person.2. requesting it to pay the specified amount to the person named on it.The Bank of Punjab and maintains the cheque book register Cheque book inventory and cheque books issued are recorded in this register. The account number for which the cheque book is issued and the number of leaves are also recorded in this register when the cheque book issued an entry is passed in the cheque book issue register. We can define a demand draft as follows. The customer is charged for the services of issuing of demand draft (Commission and tax charges). and drawn on its branch in a specific city or on the branch of another bank in that city (in case bank does not have any branch there). Demand draft is issued on the request of the customer for the other party usually it is for the other city. The demand draft is made on the DD booklet that is to be filled by the concerned officer.1. he is charged less as compared to the non-account holder.3. 2. out of the city. I was not exposed to the practical training of that particular area but I observed it and I would like to mention a brief of them in the following.3MISCELLANEOUS: The term miscellaneous includes the issuance of demand draft andpay order etc. the amount . A demand draft register is maintained in which the entries are passed that contains the following.1 Demand draft: The demand drafts are used to make outstation payments or to transfer money. o The name of the part requesting for the DD o To whom the DD is issued o DD number o Amount of DD etc.2. “A Demand Draft is a negotiable instrument issued by the bank. Therefore a DD is always made for a particular city.” The procedure is as follows.

2. on account of a customer.” The procedure for the issuance of the pay order is almost the same as that of the demand draft.and more than 5000 Rs/. the DD leaf is handed over to the customer. The cancellation of the Pay Order is made at the request of the customer on certain charges. After careful filling the DD. The serial number from the DD register is marked over the DD leaf and the DD number is marked over the DD register for future correspondence.1 DEPOSIT / WITHDRAWL OF CASH: . 2.2. to pay on order the specified amount to the directed person (payee).2.2 Task Performed (b) : 2. The cancellation of DD is made by the bank on the request of the customer on certain charges.are issued on different booklets.2.1. for example “NOT OVER Rs/= 25000” Demand draft for upto 5000 Rs/. 2. and taking signatures from the requesting party.2 PAY ORDERS: Pay Order is defined as: “Pay Order is a negotiable instrument made by the bank. The only difference is that the DD and pay order register are different and requesting party must mention that he wants to a pay order of the mentioned amount to be issued.The Bank of Punjab is protected by the protectograph in the pattern.3.

account number. One leaf is returned back to the depositor and the other leaf with amount to be deposited is taken over by the cashier. signature of the depositor etc. • The cheque is used for the withdrawl of cash usually. Signature and the amount of the cash to be withdrawn must be written carefully. the cheque is taken from the customer and amount in the form of cash is handed over to the person bearing the cheque. b). but the concerned officer and the cashier must be very careful while giving cash to the person bearing the cheque. amount to be deposited. • • The cheque also holds two options. a). DEPOSIT OF CASH: • The deposit of cash to the account of the same person or to the account of another person in the same branch of the bank is done through the deposit slip. amount in figures and amount in words. holder or bearer. • The depositor fills the deposit slip. The Cashier will send that person to the officer for the confirmation of the signature and the verification that whether his account contains the amount he is asking to withdraw. The person must fill in the cheque carefully. • After verification.The Bank of Punjab The deposit and withdrawl of cash to and from the bank account has the following procedure to be followed by the account holder. which is easily available at the counter of the bank. WITHDRAWL OF CASH: • The procedure of withdrawl of cash is also very simple. it contains the tile of account. The cheque then presented to the cashier for withdrawl. . • • The depositor then takes this slip to the cash counter and the cashier receives it and pastes the received bank stamp over the both leaves of deposit slip.

” • It is process through which one may receive the amount of a cheque presented the bank while the cheque is drawn on any other bank. traveler cheques from all the branches of all the banks within a city through its carriers and send them to the branches on which these are drawn for clearing. • Clearing house of SBP has shifted a lot of its work to a private institution named as “National Institutional Facilitation Technologies” (NIFT). • • This system is operating within a specific city transfers. • Scrutinizing the cheque is . • NIFT collects all the cheques.2. • The officer at the clearing counter scrutinizes the cheque before accepting them for collection through clearing house.The Bank of Punjab • For 100% verification. pay orders. • A summary is prepared having the number of instruments and total amount of cheques sent to a specific branch and similar summary is sent to SBP where accounts are settled accordingly. In Pakistan State Bank of Pakistan acts as clearing house. (if the person bearing the cheque is suspicious) the account holder is contacted through telephone and then confirmation is taken prior to the withdrawl. 2.2.2 CLEARING: “It is a process by which the counter-claims of bankers are set off and balances are settled or cleared through the entries in the books of bank. demand drafts.

post dated.2. are entered in the system.2.  Depositor is a customer of bank  The title and no of account is mentioned • There are following types of clearing: 2.1 INWARD CLEARING: In inward clearing bank receives the cheque drawn on it. Then in the branch. these cheques are sorted out on the basis of parties. which are in Lahore City. In which these cheques are deposited and his signatures are seen there. not having sufficient balance.2. The cheques. which have an error i.The Bank of Punjab       That the cheque is not crossed The cheque is drawn on local bank The cheque is not mutilated or torn There in no unauthorized alteration in the cheque The amount in words and figures is same All alterations and addition or cancellation must bear drawer’s full signatures • Scrutiny of pay in slip and counterfoils is.e. which have no mistakes. Then the cheques. The main Branch receives cheques of other branches. First of all in the morning the representative from the NIFT office comes and give all the cheques that are drawn upon the branch but are presented in any other branch of the same bank of the same bank or any other bank. Following verifications are made. out . Amounts in words and figures The clearing stamps bears the date which is to come next date because the cheque are presents next day on the payee bank. Three stamps on cheques whether cheque is post dated or stale Signatures.

or due to any other reason i.e. On the next day the cheques go to their respective banks and if those bank are not satisfied then the cheques are come back and again are entered in the register on which the bank in which these were drawn and these are presented is writing and reason for their return is mentioned and are handed over to the customers by taking their signatures.2.2. bank collects their proceeds on the behalf of their customers. 2. then he deposits the cheque is his account through a credit slip and receiving the slip and cheques of other persons. 2. In the register the reason of the cheque is also given and the slip contains number wise reason which are also marked like this (X) then the cheques which are sends Accounts department in the forms of supplies and the treatment with thee cheques is made here. and amount in works and figures in written. the return slips are made for these cheques and on the slip. are attached with the photocopies of the cheques and are kept for banks record. the main Branch name. The cheques. on the back the stamps of authorized person and his initial are made. the sending or presenting bank may not properly present the cheques. The following procedure is followed.3 LOCKERS: . which are returned due to any reason.2 OUTWARD CLEARING: In outward clearing the instruments received by parties are processed at bank for clearing i.The Bank of Punjab of date. The cheques are handed over to SBP through NIFT. which returns these to the customers. Then all thee cheques are presented to another person for slip authenticated and verification it is because the error chances may be made minimum and at the time of closing the cheques are separated from the credit slips and.2. are returned to the presenting bank. Then the entry in the return is made and the signatures of the authorized persons are affixed on the register and on the return slip.e.2. When one of our customers receives cheques of another of bank or branch but does not have any account in that branch. An entry in the system is made and stamps containing payee’s account only and clearing stamps bearing the next coming date is affixed on both the slip and on the cheques and. Cheque #.2.

     • Request the custodians of Punjabbank for having a locker. This letter is for authorizing the bank for deducting locker rent directly from the account.  A “customer visit register” is maintained at Punjab bank. The form consists of following details. • bank. The customer has to fill an application form that is available with the officer. • facility.The Bank of Punjab Punjab Bank provides the facility of Safe Deposit Vaults to its customers. lockers are available for safe keeping of valuables and important documents at reasonable rentals. Mention the persons who will operate the locker. Another document filled by the customer is “Authority For Three types of documents are required for opening a locker with Punjab A person who is already a customer of Punjab Bank can avail this Recovery Of Rent From Account”. Procedure For Opening a locker is as follows. Identify the category of locker. Almost all of branches in major cities. It Name of the lessee Address of lessee or lessees Category of the safe deposit locker Date Signatures contains the following information. Business and home address. Name of the introducer. • Bank.     Finally a “Memorandum of Letting of Safe” is issued from Punjab  . Punjab Bank provides this facility with complete secrecy and confidentiality in a secure and comfortable environment. There is also the option of different locker sizes suiting the customer requirements.

Time of operating the locker Name of the person who is operating the locker at a specific Signatures of the custodian (the officer who is maintaining the • • There are certain conditions defined by the management of Punjabbank Access to the safe deposit vaults containing safes may be had from 9. if previously All the rentals of the lockers are strictly payable in advance and the bank reserves the The bank will not incur any liability or responsibility what so ever in the vent of loss case of joint lessees. or destruction of or damage to any articles.A. dacoity. • • • • • • On Friday the safe deposit vault will remain open from 9. with its key. fire or other accidents. documents. Saturdays.M regarding the lockers. recognized. written notice to give up possession (which may be given by either party) must be given one week prior to the termination of any period of the letting of the safe. is to be given up to the company at noon on the day of the termination of the letting. only his or her legal representatives shall be In case of death of any one of the joint lessees.The Bank of Punjab   time  records of lockers) . at any time in the said lockers. the survivors. • The safe deposit department of the bank should be notified of any change in the address of the lessee. or to any part therefore by theft. authorized by the deceased shall be entitled to have access to the safe. on all the working days except Fridays. right of refusing access to the lockers in the event if the rental is not paid when due.M to 1.P. Sundays and bank holidays.AM All of them or by any one of them can have access to the safe by the lessee and in In case of death of a sole lessee. . securities or valuables. • In order to terminate the lease.AM to 11.

3 SWOT ANALYSIS of BOP: SWOT analysis comprises Strengths. The safe deposit department will seek the permission from the regional office to break open the safe and make a duplicate key for that safe. • In case the lessee has lost his/her key. All the activity is done in the presence of customer. officer in charge and the branch manager. replacing the lost key and of changing the lock. All the breakage charges are recovered from the lessee. In this case the bank is not responsible for any mistake and the charge. range of quality products with revolutionary products with convenience. The bank may return the goods to the customer by way of parcel to the given address of the lessee. for opening the safe.The Bank of Punjab • Lessees are warned not to disclose the number of their safes and pass words. department without any previous intimation. It presents a Assessment of the needs and wants of customer is an ongoing process at BOP. STRENGTHS: • • Bank’s diverse product portfolio gives an edge over competitors. a notice is given in the newspaper or the lessee is informed in any other way. if the customer is not able to pay the rent. • • The lessees agree to abide by the above stated rules concerning the safe department. Opportunities and threats. lock or key. In case of Non-Payment of Rent. not to deliver their keys to any person other than duly authorizes agents. • • Exclusively workmen to be nominated by the company shall do all the repairs The bank reserves the right of changing the opening and the closing hours of the necessary to be done to the safe. . which helps to continually develop mew products and services. Weaknesses. Even after furnishing the notice he doesn’t come to pay his rent or operate his account. It may also be done that the bank retains and keeps the goods such other safe at an annual rent double than the amount of the rent mentioned by the bank. The SWOT Analysis of Punjab Bank Limited is as follows. it should be notified to the bank immediately. the bank shall have the right to break open the safe. 2. The lessee has to inform in writing about this loss.

• The advertisement facility is not so good to attract the proper clientage and to reflect the true image of the bank. magazines. its profitability The Bank Of Punjab is a full service banking institution offering consumer. The rates of interest on many schemes at THE BANK OF PUNJAB are very low as compared to other banks that help a lot in attracting customers towards BOP. corporate and investment banking facilities to its customers. • The behaviour of the employees of the bank to the client is usually harsh that results in very rude atmosphere between the employees and the customers.The Bank of Punjab • Professional and dedicated staff and the loyalty of workforce towards organization have brought The Bank OF Punjab at this competitive stage of development. even no proper sitting arrangement is given to the customers. • No entertainment facilities are available in the Bank when customer goes to the Bank and wait for a longer time. etc. These facilities can be the newspaper. Bank revolves all the employees to all the areas of banking operations so that they get to know all the working areas of the bank. The customers want very much polite attitude from the bank’s side but do not get the expected attitude which pushes them away from the bank and to switch to some other bank. . BOP rules and regulations are very strict in terms of customer’s complaints.because of the workload the staff does not give the client that attention and quality of service that a client deserves. WEAKNESSES: • The level of services provided is not up to the mark. • • • • • Strong financial position depicted by its financial statements. Customers have to wait for a long time in rows. Every customer is treated to their best and tries their full to remove the complaint. especially in Sadiqabad and liquidities are boosting. Branch. It creates more ambiguity among the customers about the policies and the facility rendered by the bank.

OPPORTUNITIES: • Location of an organization is very important factor. • BOP is attracting more and more customers by adopting the new policies offered by the government so as to achieve the required clientage. BOP has an official website and when you become a BOP customers you automatically gain access to Online and do not have to register for Internet banking separately. but most of the branches are not having the proper presentation. It does not mean that all branches of BOP are outdated and gives an out of fashion look. It represents the basic strategy for accessing markets and may have significant impact on revenue. • Internet has become the need of the day. . Every pragmatic organization is taking advantage of this channel.The Bank of Punjab • The outer appearance of most of the branches of The Bank of Punjab is not so good. which helps them to deal with the customers in a better way. By capturing the share from the middle-income group by offering more economical schemes is a great opportunity to BOP. costs and service levels to customers and clients. All branches are situated at central points of the country. • Training programs are conducted for employees. These policies of government are in results of the steps taken by higher authorities for the welfare of the small borrower and middle level customer. • THE BANK OF PUNJAB is covering the major area of the country through its network in almost every area of the country as well as they can capture the market through fast delivery of funds. which is very helpful for them to learn about the products ofBOP.

The entrance of the new private and other foreign banks in the local market is also a big threat to the bank and its share in the market as they provide more services and they give a far better atmosphere and attitudes to their customers. feedback.  There should be proper sitting arrangements for the customers who have to wait for their turn.4 RECOMMENDATIONS: Employees are not satisfied with the Personnel policies. due to which level of recoveries is declining day by day.The Bank of Punjab THREATS: • • Political influence is a major threat to the bank as the changing government policies hits the effectiveness of the bank as compared to it gives benefits to bank. • Earlier recovery procedure of the bank was little bit strict due to which recoveries level was so good. Customer’s Satisfaction should be the aim for the employees of the bank. THE BANK OF PUNJAB should make the environment better and should give the first priority to its customers.  More telephonic facilities should be given to the customers. It also protects from having any dacoit inside the bank. 2. . transfer and promotion policies of the bank.  To get a competitive edge and a remarkable market share. They are not satisfied with the performance appraisal.  The hidden cameras should be erected inside the bank so as to get all videos about who entered in the bank and what he did and how the employees behaved with those outsiders. if a person wants to get any kind of information through telephone. But now the government have dictated that Punjab bank have to decline the strictness level.  BOP should give more attention and focus to the consumer banking side as its consumer banking and facilities related to it are not enough to compete in the market of many other banks. BOP has no proper telephonic facility such as telephone operator for full banking hours to serve the customers.

The employees are given all the possible facilities and generous compensation. that bank is sharing major banking business of the country. But the ban’s performances are in line with its set goals.  Proper training facilities should be provided to the employees of the bank to make them competent and aware of the banking world.  The employees who give outstanding performance. Chapter 3 Conclusions: The Bank of Punjab is contributing a lot towards the industrial development and capital formation in the country. As it is exhibit from the data regarding the bank’s financial performance as shows in the financial performance as shows in the financial analysis. Further more the policies and schemes as are introduced and carried on by the bank are of great source of help in its trading and non-trading growth They facilitate trade both inside and outside the country.The Bank of Punjab  More and more financing facility should be given by the bank specially to the small borrower and also provide some attractive packages to them  BOP should be more cautious about what kind of items is being placed inside the lockers.  Bank should revolve all the employees to all the areas of banking operations so that they get to know all the working areas of the bank. There should be some policy regarding the exposure of the contents of locker to the banker for the future security purpose. bank should have some different criteria to appraise them. However after scheduling. For example there should be some benefits for the outstanding work performance of the employees. The Bank if Punjab has endeavored to remain in the forefront of modern financial institutions and has consistently shows tremendous growth in all area of its activity. In return employees are stressed for their best efficiency. Administration . the growth of profit has somewhat declined. The policies of the bank are uniform and going very smoothly. Merit policy prevails in all the activities of the bank. due to its emphasis on consolidation and controlled lending.

The Bank of Punjab has studied the administration of all other banks.org.sbp.com http://www. Rrferance:  www. enthusiastic and motivated employees can bring that time even earlier. Therefore.sbp.htm   http://www.gov.com. the policies of the management are progressive and proper.pk  BOP Bhakkar Branch Employees  Bank of punjab Ltd Annual report  http://www.pk Appendix: .bop. and all their problems and drawbacks are planned to be avoided.google. The dedicated. The progressive approach and trend towards progress and prosperity reflects that bank will touch the zenith of development and progress.pk/bsd/2003/C7.

The Bank of Punjab ORGANOGRAM: Board of Directors Audit Committee President Internal Audit Corporat Investment & Commercial Retail Banking & Consumer Banking Treasury Risk Management Special Asset Management Information Technology Finance Operations Compliance Control Human Resource & Corporate Affairs .

The Bank of Punjab Networking of BOP: Established in 1989. The Bank of Punjab is working as a scheduled commercial bank with its network of 272 branches at all major business centres in the country CITES Province of Punjab ISLAMABAD QUETTA KARACHI A.KASHMIR PESHAWAR TOTAL BRANCHES NO.J. OF BRANCHES 256 2 3 3 3 3 272 Aknoledgement: All praise and gratitude due to ALLAH ALMIGHTY who created man in His own image and enjoyed upon him to travel on the earth and enter into a profound and analytical study of Universe for spiritual appreciation of ALLAH’S unity and His attribute as well . in pursuance of The Bank of Punjab Act 1989 and was given the status of scheduled bank in 1994.

They have provided me with valuable information which helped me a lot in completion of this report.Muhammad Ibrahim (Branch Manager of Bhakkar Branch) who provided me with the opportunity to work in Bank of Punjab as an internee who has persistently rendered his erudite guidance and professional assistance in compiling this report.The Bank of Punjab as for harnessing the material manifestation of the world to the mankind’s profitable utilization. Thank you all MUHAMMAD AAMIR KARIM MBA (B & F) 4th Term Muhammad Imran Awan Date of birth: 25-12-1987 Address: House Mohallah Railway station near masijd peer pathan. Darya Khan Distt. They have provided with me in every department. Among my contemporary benefactors I express my sincere gratitude to Mr. who cooperated with me in every department. therefore we express our utmost thanks to ALLAH. In the first place.U. At the next stage I offer our gratitude to our Apostle and prospector Prophet Muhammad (P.H) for his golden saying “Gain knowledge be in China”. but I am quite sure that I have learned a lot from this internship.B. In the end I would like to thank all the staff members of BOP. Bhakkar Tel: 0333-6541151 . I am thankful to all of my teachers and my class fellows and friends whom cheerfulness and guidance is an asset for me. It was relatively a new phenomenon for me.

Other skills:  Communication skills  Good Inter Personal Skills  M.demand drafts.The Bank of Punjab Email: Imran.  I am keen and determined to work whole heartedly any task assigned to me. accounts. Office  Positive Attitude Interest:  Books Reading  News Paper Reading  Cricket and Chess  Music Listening Languages: Sraiki Mother Tongue.  Fundamentals of clearing process  Knowledge about pay orders. English and Urdu .awan_manoo@yahoo.com Internship:  Bank Of Punjab (Darya Khan Branch  Work on accounts opening process. Work Experience:  Work as internee for 8 weeks in BOP Darya Khan.S. products and services of bank.