BOP Report

INTERNSHIP REPORT
The Rise School of Accountancy Mussaret Nazim

INTERNSHIP REPORT

INTERNSHIP REPORT
INTERNSHIP REPORT ON BOP

The Bank of Punjab
SUBMITTED TO: Area Manager : Amir Zafar

&
The Operation Manager
Mr Mehmood Ahmed
PREPARED BY:
Mussaret Nazim
ROLL NO 00131
MBA 3.2 (Finance)
Scession 2013 to 2017
Registration No . 2011-qdl-158
The Rise School Of Accountancy

Affiliated By:
University of the Punjab LHR.

INTERNSHIP REPORT
Dedication
I dedicate this report to my loving mother, sister, friends and
my mentor Miss Sadaf Aslam and Mr Naseem Tahir Mr
Qasim Khan Khichi ,Mr Hassan ,Mr Basshir,Mr Touseef
and others bop staff without whose help and encouragement
it would not have been possible. For me accomplish this task
within the specific time limit. I was provided with every
facility by my mother who was necessary in order to complete
this challenge assignment.

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Aknowledgement
Most greatfull to almighty allah who enabled me to utilized
my knowledge and skills for the prepration and completation
of this internship report. I want to express my most humble
gratitude to my supervisor and all other teachers and class
fellows who furnished me with the opportunity to complete
report . I am also thankfull to my operational manager, i am
also gratefull to my colleagues and friends who provided with
the moral support during the completation of this report.
Mohsin Abbas

INTERNSHIP REPORT

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Table of Contents
Overview of the Organization (BOP) --------------------------------------- (15-16)
Brief History
Nature of the Organization
Introduction of the organization..(17 25)

Economic review
Present status of the organization
Business Volume
Competitors of the BOP
Comparison with same other organization
Awards and Achievements of NBP
Corporate and investment banking
Awards and Achievements of BOP
Corporate and investment banking
Main sponser
Owner ship

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Division of the BOP . .( 26 28)

Operation Division
Business Development
Credit Division
International Division
Finance Division
Recovery Division
Audit and Inspection
Vision .. (29)
Mission (29)
Core Values (29)
Goals . (30)
Objectives .. (30)
Part # 2
Organizational Structure ----------------------------------------------------- (32-35)
Organizational Hierarchy Chart

Central Management Hierarchy
Hierarchy on the basis of power
Structure of the region office
Comments on the Organizational Structure
2. Policy Formulation Process .. (36)
Employes personnel in various section (36 37)

Employees Designation and number
Job Assignment,Qualification and Matching Benefits ..

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Cash dep job specification

Deposit job specification
Advance dep job specification
Issuing of L/G job specification
Customer service dep job specification
Board of Directors
Matching Benefits
Carrer Ladders (45)
Job Discription (46)
Methods
Recuritment
Selection
Orientation
Employees Trainaing
Insentives
Major Managerial policies .. (48 50)

Planning
Organizing
Communication
Leading
Motivational Techniques used in BOP . (50 52)
Organization Behaviour
Controlling
Controlling against Fruads
Part # 3
Management Administrative style . ( 53 56)
Population Management:

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Human Resource Management
Security and Facility Management
Correctional Leadership and Effective Public Administration:
Inmate Programs and Services:
Building Partnerships:
Counter-Terrorism:
Code of principal
Impact on the moral and effeicency of Employees
Part # 4
Production facilities
BOP product line . (58 61)
Deposit Products include
Profit Loss Sharing Term Accounts
Profit Loss Sharing Cheque Accounts

Commercial Finance
Consumer Finance
Agriculture Credit
Production operations
BOP Current Account:
Basic Banking Accounts:
BOP Tijarat Account (LCY):
FCY Supreme Current Account:
Profit Loss Sharing Term Accounts:
BOP PAHLAY MUNAFA DEPOSIT SCHEME
Munafa Hi Munafa Term Account III:
BOP Bai Missal Term Deposit:
Profit Loss Sharing Cheque Accounts:
BOP Senior Citizen Saving Accounts:
BOP Gharayloo Saving Account:

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BOP Ziada Munafa Saving Account:

BOP Profit Plus Account
Commercial finance
Demand Finance:
Cash Finance
Womens Entrepreneur Finance Scheme:
Agriculture Credit Department:
Part # 5
Marketing mix ..
Marketing mix of BOP
Marketing department
Publication
Product / services of BOP .
Analysis of Bop marketing procedure
Pricing policy .
Promotion procedure
Part # 6
Finance / accounting system
Verticaly Ratio Analysis
Liquidity Analysis
Current ratio
Quick Ratio
ACTIVITY ANALYSIS
Receivable Turnover Ratio
Payable Turnover Ratio
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Inventory Turnover Ratio

Profitability Ratios
Profitability In Relation To Sale
Gross Profit Margin
Net Profit Margin
Profitability in relation to investment
Return on Investment or on Assets
Return on Equity
COMPARATIVE ANALYSIS OF INCOME STATEMENT
Trend Analysis Of Balance Sheet
Common-Size Analysis
SWOT ANALYSIS Error! Bookmark not defined.

Strengths
Weaknesses
Opportunities
Threats
Part # 7
MY ACTIVITIES IN BOP DURING INTERNSHIP
Administrative work
_Toc366059280 Part # 8
CONCLUSION AND RECOMMENDATIONS
Bibliography ---------------------------------------------- (127)

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ACKNLODGEMENT
Up and above everything, all praise goes to ALLAH ALMIGHTY. I am profoundly thankful
to ALLAH ALMIGHTY, the most gracious, compassionate and beneficent and His
PROPHET (S.A.W.W) who is forever a true torch of guidance for the whole humanity.
My special thanks to the management of The bank of Punjab, regional office, Lahore, who
provided me the opportunity to have a real practical exposure to the banking sector of
Pakistan during my 6 weeks internship period.
I have my keen regards for Mr. Numan Afzal, the manager of the regional office Lahore,
whose kind guidance and friendly attitude not only facilitate me in learning but also help me
get familiar with the environment of bank and removed my prior strains regarding internship
joining.
I would like to give special thanks to my mentor Miss Nabila Shafi, who supported and teach
me at each and every step of my practical exposure during my internship period. She not only
facilitate me towards learning in true meanings but she also inspired me in her styles of
management and infect it would be a very difficult for me to learn how HR actually practice
in the bank without her corporation and encouragement.
I would also like to give special thanks to other staff of regional office BOP, their friendly
attitude encouraged me to discuss about various issues regarding HR, management, BOP
culture and their problems and learning about many managerial aspect of banking sector.
Last but not the least; I would like to thanks my Prestigious Institute, Punjab University and
my department Institute of Business Adminstration who provided me this wonderful
opportunity of practical exposure.

INTERNSHIP REPORT
PRFACE
Banking sector owes a pivotal importance in the economy of any country through its vibrant
functions. This is the deep seated motivator that geared up me to join any bank for internship.
Moreover the practice and familiarity learned during this tenure would also attest very helpful
and alleviating in the awaiting proficient life.
This report is an upshot of my eight week internship in Bank of Punjab, Regional office,
Lahore. Bank of Punjab posses an imperative importance in the banking sector of Pakistan. It
always remains the centre of hustles in business activities. It always endows with great
covenant of rally round in term of funds and services at all epochs of its dynamism.
Although a derisory period of eight week is not enough to learn the complex operations of
bank yet I made industrious efforts to converse them comprehensively in this report.
Particularly I have remunerated more accents on study of distinguishing features and services
of Bank of Punjab. I have made maximum venture to elaborate this report with the material
read, listened and observed.
I have strong believe that this report will guide and ease the reader to understand how the HR
practice in the bank and also get good knowledge about the bank of Punjab, one of the most
trusty and leading bank in Pakistan.
Dear readers I hope that you will appreciate my report and sense that reading my report is not
like to waste the time in any respect.

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TRANSMITTAL MEMORANDUM
To:
Institute Of Business Administration
University of the Punjab
From:
Mahjabeen Ehsan
ROLL# BBAE2009045
House#6 street#2 Bismillah chock pico road, Lahore
E-Mail:mahaehsan13@gmail.com
SUBJECT: INTERNSHIP REPORT ON THE
BANK OF PUNJAB
Internship report on any organization is a necessary element to get the BBA (Hons) degree
from any university. I have written an internship report on BOP and review its HR system /
procedures adopted for such purpose.

INTERNSHIP REPORT
My major recommendation is this: BOP should improve their contact with middle & lower
level employees especially supervisory level and establish internal performance appraisal
system to avoid the future complications & to evaluate the employee performance &
encouraging them. That conclusion was arrived at after Eight weeks extensive practical
training/study in the HR department of the company. I am grateful to my seniors, and
subordinates who assist me to complete this comprehensive report in an excellent way.
If the members of the review committee of this report have any additional questions, I Insha
Allah will try my best to do it more well way. At last I thankful to the University who give
me an opportunity to review/study the Revenue system/process of company.
EXECUTIVE SUMMARY
TITLE: AN INTERNSHIP REPORT ON
The Bank of Punjab LHR.
AUTHORIZATION: This report is a necessary part of BBA
(Hons) degree program.
REOCMMENDATION:Department of business administration of the university

advised every student to submit. It was done after the
completion of all subjects. The main purpose of this report is,
review of the all departments mainly HR department its
techniques & systems adopted by the organization. Find out
their weaknesses and give suggestions for improvements. I
strongly recommend that bank should improve their contact
with middle & lower level employees and personally
connected with clients for the purpose of bad debts recovery,

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PROCESS OF REVIEW:Data from different sites and organization were taken for
analysis.
METHODOLOGY: HR practices followed by the bank seen practically whether the

bank adopted them according to the international law standards
or not.
PROBLEMS: A central problem in the HR department the bank is lack of

Resources to their employees there is a lack of co-ordination
between of the organization as well as into a specific branch.

Another problem is lack of political pressure for
Transfers/postings etc on middle management. Likewise lake of

new systems causing the delay in work and negatively affecting
the overall performance of the bank. I point out those weak
areas, and hope that bank if, adopted my suggestion and
recommendation can overcome the problems. This will also
benefit for the other systems of the bank.
TIME FRAME: Finally, if the recommendations are accepted, the programme

could be, put into effect within six months.

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PART ONE
INTRODUCTION OF THE
ORGANIZATION:

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History:
The Bank of Punjab started functioning with the inauguration of its first branch of 7-Egerton
Road, Lahore on November 15, 1989. The architect of the bank Mr. Nawaz Sharif then, the
Chief Minister of Punjab, performed the inauguration.
In Pakistan, for long periods of time that the gap in savings and investment and trade deficit
has posed a serious threat to target levels of growth-related ailments budget deficit and public
debt, both external and internal add up. Interestingly, although growth in such adverse
circumstances in the real sector during the previous year showed a favourable exchange,
which speaks of hidden potential and strength of the economy.
Passion Reborn At BOP:

With a strong company positioning of Passion reborn driving us, the management of the
bank has implemented strategies and policies to carve a distinct position in the market place.
Fortified with years of banking expertise and driven by the strategic goals set out by our
board of directors and senior management, the bank has invested in revolutionary technology
to have an extensive range of products and services. This facilitates our commitment to repay
the trust and confidence of our stakeholders, and also to a culture of innovation.
BOP has emerged as on one of the foremost financial institutions in the country, focused on
spurring an economic revival by end evoking to meet the needs of tomorrow as well as today.
Our extensive portfolio encompasses all facets of banking.
Introduction:
The bank of Punjab established in 1989,in pursuance of the bank of Punjab Act 1989 and was
given the status of scheduled bank in 1994. The bank of Punjab stated functioning on
November 15, 1989. It was established under the provisions of section 28 of the federal list
included in the 4th scheduled of the constitution of the Islamic republic of Pakistan 1973.
The bill to this effect was passed by provisional assembly on July 3rd 1989 and assented to
by Governor Punjab in accordance with the provision of the constitution on 26 July 1989.
This act provided for the foundation for which the structure of bank was erected. It also

INTERNSHIP REPORT
included and provided for various modalities concerning the structure, the organization and
scope of the bank laying down the objectives, share capital and principal of lending.
The entire responsibility of policy formulation and management has been placed, under the
act, with the board of director. The Board is headed by the Chairman/Managing Directors
appointed by the Govt. that runs the affairs of the bank as per guidelines provided by the bank
of Punjab has a progressive and a dynamic human resource philosophy.
The bank believes in transforming its human capital into a key source of competitive
advantage. There is a strong value system in place, which is driven by result orientation,
adaptability to change humility and respect for sub ordinates and peers. The bank believes
that investment in human capital is critical for achieving and sustaining growth.
The banks constant endeavour is to create a performance driven work culture with focus on
employee satisfaction and retention.
BOP strongly believes that the interest of the bank and the employees are inseparable. They
try to create WE culture where there is a mutual trust and respect for each other. BOP
encourages ownership behaviour so that everyone feels responsible for the performance and
reputation of the bank. The bank committed to develop and enhance each employees skills
and capabilities through extensive in-house and external training programs and job rotation.
The efficient, hardworking, talented and qualified human resources are the main drivers
behind the success of any organization. Especially for those who working in the service
industry human resource is the key to success. Fortunately BOP is gifted with talented and
dedicated employees who not only know and understand the vision of the bank but also do
great effort to achieve organizations goals and objectives.
NATURE OF THE ORGANIZATION
BOP is essentially a financial organization. The bank is concerned about the commercial
banking and related services in Pakistan and abroad. The nature of the operations of the bank
is different and unique from other banks / financial institutions working in Pakistan. Balance
of payments is the largest commercial bank in Pakistan. After redefining its role has become
a modern commercial bank rather than a public sector organization.
Bank services are accessible to people, the government and the business sector. It also deals
with treasury operations of the Government of Pakistan as an agent for the State Bank
of Pakistan (SBP in places where no presence). It has a diversified business portfolio and is
now a front-end player in the market for debt securities, agricultural finance, corporate
investment banking, retail and consumer banking, treasury services and are taking a growing

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interest in development of small and medium businesses. It is also fulfilling its social
responsibilities as a corporate citizen
BOP is a Governmental Organization. it implements the policies of State Bank of Pakistan as

it is the agent of SBP. It deals all Government Revenue, collection and payments of salaries,
pensions and also payments related to the Government Treasury. The bank also provides
services as trustee to National Investment Trust (NIT) and Long-Term Credit Fund (LTCF).
Economic Review:
Control expenditures and year 2013 shall see how effective implementation of these measures
ultimately remains. However, despite deteriorating economic conditions, inflation was
Contained significantly during 2012. This was primarily why SBP slashed its discount rates
by 250 basis points after August 2012 so as to ease monetary flow. With a lenient policy rate,
a slight stimulation in private investment was also seen. Further reduction in inflation could
Prove to be a stepping stone for accelerated economic expansion in 2013 and onwards. The
industrial sector is still suffering from adverse effects of the gas shortfall and energy crisis.
Hence if the energy crisis is resolved to some extent, a major chunk of the economy could
benefit and facilitate achievement of economic development targets. If not dealt with, this
crisis will continue to be a binding constraint through the whole of next year However; the
agriculture sector did recover with cotton, wheat, rice and other major crops benefiting from
post flood recovery. A volatile political environment coupled with deteriorating law & order
was also seen towards the close of the year. With political uncertainty and a volatile security
situation, the economy was bound to suffer.
However, on a brighter note, upcoming political restructuring might be able to bring back
economic stability and allow a faster pace of growth.
Pakistans economy has now been put to a test of structural changes, which might be the only
solution to more prosperous 2013. Broadening of the tax base, elimination of elements
draining public finances and stability in the power sector are key in allowing this to happen.
Present status of the organization:

The bank of Punjab is now working as a scheduled commercial bank with with its network of
273 branches at all major business canters in the country. The bank provides all types of
banking services such as deposit in local currency, client deposit in foreign currency,
Remittances, and Advances to Business, Trade, Industry and Agriculture.
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 of Punjab plays a vital role in the
national economy through mobilization of untapped local resources, promoting savings and
providing funds for investment.

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Attractive rates of profit on all types of deposits, opening of foreign currency account and
handling of foreign exchange business such as imports, exports and remittances, financing,
trade and industry for working capital requirements and money market operations are some
facilities being provided by the bank.
The lending policy of bank is not only cautious and constructive but also based on principles
of prudent lending with maximum emphasis on security. 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 shares are listed on all stock
exchanges in Pakistan i.e. Karachi, Lahore and Islamabad. The government of Punjab holds
the majority shares of the bank.
Current Business Volume:
Assets(Current + US$ 2.7

Fixed) Billion PKR 164.7 Billion
US$ 1.7
Loans Billion PKR 103.7 Billion
US$ 2.3
Deposits Billion PKR 140.3 Billion
Competitors of the BOP:

The competitors of the Bank of Punjab are the other commercial banks in Pakistan such as:
Muslim Commercial Bank Limited,
Soneri Bank Limited
United Bank Limited
Allied Bank Limited
Askari Bank Limited
Faisal Bank Limited
Standard Chartered Bank Limited

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Habib Bank Limited
Habib Metropolitan Bank Limited
Bank Al-Habib Limited
Comparison with same other organization:

National Bank of Pakistan is one of the largest commercial bank operating in Pakistan.
It has redefined its role and has moved from a public sector organization into a modern
commercial bank. The Bank's services are available to individuals, corporate entities and
government. While it continues to act as trustee of public funds and as the agent to the State
Bank of Pakistan (in places where SBP does not have presence). It has diversified its business
portfolio and is today a major lead player in the debt equity market, corporate investment
banking, retail and consumer banking, agricultural financing, treasury services and is
showing growing interest in promoting and developing the country's small and medium
enterprises and at the same time fulfilling its social responsibilities, as a corporate citizen.
National Bank of Pakistan is today a progressive, efficient, and customer focused institution.
It has developed a wide range of consumer products, to enhance business and cater to the
different segments of society. Some schemes have been specifically designed for the low to
middle income segments of the population. These include NBP Advance Salary, NBP Saiban,
NBP Kisan Dost, NBP Cash n Gold.
The bank has taken various measures to facilitate overseas Pakistanis to send their
remittances in a convenient and efficient manner. In 2002 the Bank signed an agreement with
Western Union for expanding the base for documented remittances. More recently it has
started Electronic Home Remittances Project. This project introduces technology based
system to handle inward remittances efficiently, by ensuring that the Bank's branches keep a
track of the remittance received from abroad till its final receipt. Bank has been signing
different agreements with other leading players in the remittance field for ensuring that
remittance services are available to most of the overseas Pakistanis.
A number of initiatives have been taken, in terms of institutional restructuring, changes in the
field structure, in policies and procedures, in internal control systems with special emphasis
on corporate governance, adoption of Capital Adequacy Standards under Basel II framework,
in the up-gradation of the IT infrastructure and developing the human resources.
National Bank of Pakistan has built an extensive branch network of 1310+ branches in
Pakistan and operates in major business centre abroad. The domestic branch network has
been automated and is online. The Bank has representative offices in Beijing, Tashkent,
Chicago and Toronto. It has agency arrangements with more than 3000 correspondent banks

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worldwide. Its subsidiaries are Taurus Securities Ltd, NBP Exchange Company Ltd, NBP
Capital Ltd, NBP Modaraba Management Company Ltd, and CJSC Bank, Almaty,
Kazakhstan. It has recently opened a subsidiary in Dushanbe, Tajikistan.
The Bank's joint ventures are, United National Bank (UK), First Investment Bank and
NAFA, an Asset Management Company (a joint venture with NIB Bank & Fullerton Fund
Management of Singapore).
Reward and Achievements of NBP:
"Domestic Technology and Operations Bank of the Year 2013 - Pakistan", "Asian
Banking & Finance Magazine", Owned by Charlton Media Group, Singapore.
"Listed in top 1000 banks of the world for the year 2013" by the world
renowned "The Banker magazine owned by the Financial Times Group, London.
Domestic Retail Bank of the Year 2013 - Pakistan, "Asian Banking & Finance
Magazine", Owned by Charlton Media Group, Singapore.
The National Bank of Pakistan (NBP) received Middle East Renewable Deal of the
Year 2012"award from Project Finance Magazine, a publication of Euro money PLC,
for its role in Pakistan's first ever 100 percent Islamic Finance Renewable Power
Projects Foundation Wind Energy 1 and 2.
3rd Global Human Resource Excellence Award - 2012" administered by Global
Media Links in collaboration with Better Pakistan.
"Listed in top 1000 banks of the world for the year 2012" by the world
renowned "The Banker magazine owned by the Financial Times Group, London.
2nd Global Human Resource Excellence Award - 2011" administered by Global

Media Links in collaboration with Better Pakistan.
"Pakistan: Transaction of the Year Award - 2011", awarded by Islamic Finance

News, for two wind farm projects of 50MW each in which the bank acted as
international inter-creditor agent (for the Islamic Development Bank, the Asian

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Development Bank and syndicates of local banks).
"Transaction of the Year Award - 2011", awarded by CFA Association of Pakistan for
the private placement and offer-for-sale of Engro Foods Limited.
"Bank of the Year" awarded for the year 2011 by the world renowned "The
Banker" magazine owned by the Financial Times Group, London.
"Top Corporate Finance House (Fixed Income) Award of the Year 2011", awarded by
the "CFA Association of Pakistan".
National Bank of Pakistan Awarded "Best Emerging Markets Bank 2011"

Awarded By Global Finance Magazine.
"Runner up of Corporate Finance House (Fixed Income) Award of the Year

2010", awarded by the "CFA Association Pakistan".
NBP is awarded "President of Pakistan Trophy", a top slot award by Federation of

Pakistan Chambers of Commerce and Industry in 2010.
NBP is awarded "Prime Minister of Pakistan Trophy", a top slot award by Lahore
Chambers of Commerce and Industry in 2010.

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Among the global leading banks, NBP is the only Pakistani bank appearing in top 500
banks of the world in The Banker" magazine owned by the Financial Times Group,
London.
"Worlds Best Foreign Exchange Bank 2008" awarded by worlds leading financial
journal "Global Finance"
Stable AAA/A-1+ (Triple A/A-One Plus) rating (Standalone Basis) by JCR-VIS (July
2007).
Best Return on Capital for 2006 amongst all Banks in Asia. - "Banker Magazine" in
July 2007.
Worlds leading financial journal, "Global Finance" has named NBP as the Best
Emerging Market Bank from Pakistan for the year 2006.
"Best Foreign Exchange Bank Pakistan" award for the year 2006 by worlds leading
financial journal Global Fin Due to consistent improvement in NBPs Core
Profitability, Asset Quality and Economic Capitalization in recent years, Moodys
Investors Service upgraded the Financial Strength Rating (FSR) rom E+ to D-, in
November 2005.
"Best Foreign Exchange Bank Pakistan" award for the year 2005 by worlds leading
financial journal Global Finance".
"Best Bank - Pakistan" award for the year 2005 by worlds leading financial
journal "Global Finance".

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The Asian Banker, a reputable financial journal, has published the report of its
research project on the ranking of 300 of Asias Strongest Banks based on a 11-
Dimensional Dynamic Scoring Criteria has adjudged National Bank of Pakistan as the
Strongest Bank in Pakistan.
"Number 1 Bank in Pakistan" by the prestigious Banker Magazine" in its issue of

July 2005.
The "Banker Magazine" in July 2005 recognized NBP as the 10th Best Bank in terms
of Profit on Capital in the world.
On an all Pakistan basis National Bank of Pakistan was awarded the "Kissan Times
Award" for the year 2005 by the Prime Minister, Mr. Shaukat Aziz, for its services in
the Agriculture Sector.
Worlds leading financial journal, "Global Finance in an exclusive survey has named
NBP as the Best Emerging Market Bank from Pakistan for the year 2005
"Euro money" Magazine, a leading and prestigious journal, published from London,
UK, in its issue of March 2005 has published Moodys Investors Service rankings in
which NBP is the only Pakistani bank which has been ranked among the Top 100
banks of Asia for it performance in the fiscal year 2003.
On the basis of overall financial performance during 2004, NBP has been
listed "Amongst top 1000 banks in the world".

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"Bank of the Year" award for the year 2004 by the world renowned "The
Banker" magazine owned by the Financial Times Group,
London.
WEBCOP-AASHA, an alliance against gender discrimination at workplace, presented

recognition Award to National Bank of Pakistan on December 18, 2004 for having
a Gender Sensitive Management.
In May 2004, NBPs standalone long-term rating was upgraded by JCR-VIS Credit
Rating Agency to AA (double A) from AA- (double A minus) with "stable outlook",
while standalone short-term rating was maintained at A-1+(A one plus). This is now
the best rating for a local commercial bank in Pakistan.
In its issue of March 2004, "Global Finance" has also declared NBP as "The Best
Foreign Exchange Bank" in Pakistan.
The "Banker Magazine" in July 2003 recognized NBP as the bank with the highest
return on capital in Asia and No.8 in the world.
Worlds leading financial journal, "Global Finance after a worldwide survey

declared NBP in its issue of May 2003 as one of the best banks in the emerging
markets.

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NBP maintained its position as one of the eminent players in this vital segment during 2012,
and has been successful in further strengthening its strong customer relationship with
premium corporate clients.

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Awards & Achievements of BOP:
Excellence Award By The Central Board Of Revenue

The Central Board of Revenue presented "Excellence Award" to the Bank of Punjab
in recognition of the contribution made by the bank towards Government exchequer.
3rd Kissan Time Awards
In recognition of Bank's contribution in development and growth of agricultural

sector, the Bank honoured with "Top Bank for Agriculture Loans" and "Best Bank
Crop Insurance" under 3rd Kissan Time Awards year 2006.
Best Corporate Report Award

Annual Report of the Bank for the year 2005 won 5th position for "The Best
Corporate Report Award" for the financial sector, adjudicated jointly by the Institute
of Chartered Accountants of Pakistan and the Institute of Cost and Management
Accountants of Pakistan.
16th Bolan Excellence Award
The Bank was awarded Best Bank Award under 15th Bolan Excellence Awards
distributed in 2006.
Achievement Award
The Lahore Chamber of Commerce & Industry (LCCI) awarded the Bank "LCCI
Achievement Award" 2006.
Corporate & Investment Banking Group:

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Corporate & Investment Banking Group (CIBG) at The Bank of Punjab is responsible for
providing banking services to the corporate customers, comprising origination & sales of
banking products and provision of services up to the expectations of leading corporate
entities of the country, products including corporate lending, trade finance and corporate
advisory are provided. Our clients come from both the public sector and the private sector.
We serve the entire range of corporate clients, from medium-sized businesses to large
national and multinational corporations/companies.
CIBG is subdivided into two divisions: CIBG-I (Islamabad & Karachi), CIBG-II (Lahore &
Faisalabad) Dedicated teams of Relationship Managers ensure the delivery of our entire range
of financial products and services to our clients and to provide tailored financial solutions to
the customers with respect to their business needs.
MAIN SPONSORS:
The bank of Punjab was incorporated under BOP act 1989; its shares are listed on all stock
exchanges in Pakistan i.e. Karachi, Lahore and Islamabad. The Govt. of Punjab holds the
majority shares of the bank.
OWNERSHIP:
In 1989, the Govt. of Punjab owned 60% ownership and autonomous bodies, general public
and foreigner owned 40%.
After that with the inclusion of foreign investors the ratio was disturbed as:
Govt. of Pakistan 51.1%
General public
Autonomous body 48.5%
Foreign investors
Due to inclusion of foreign investor the market price of the share of the bank of Punjab was
increased up to Rs. 150 from Rs. 13 and up to the end of 1991 it raised up to Rs. 175 which
was the maximum price in the history of the bank of Punjab.

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DIVISION & DEPARTMENTS OF BOP:

Human Resource Division:
This division deals with the problems relates to the staff administration. The main function
of this department is to arrange a comprehensive training program for recruited staff. Others
function includes:
1. Recruitment
2. Staff remuneration
3. Placing the staff
4. Providing and defining the opportunities for career development and growth
5. Devising and implementing services rules.
6. Promotion and demotion
7. Suspension and termination

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8. Transportation
9. Security, health and benefits.
Operation Division:
This Division is concerned with the operational working in general banking, which is
concerned with the routine working of the bank. Any problem or ambiguity arise in any
branch working are rectified and suggested for correction by this division. This Division
usually takes technical procedures involved the decisions like commissions.
1. The maintenance of the existing building of the bank
2. Opening new branches and their maintenance
3. Also deal with the stationary problems of the bank
Business Development Division:
It is the other name of the marketing division. It promotes the bank cause i.e. deposits and
work for the overall development of the bank. Deposits are the lifeblood of any bank.
Without deposits bank cannot perform any function of banking. This division fixes the
deposits target of every branch by keeping an eye over the potential customers in the area.
It gives motivation to branches to achieve their targets through different campaigns and
schemes like cash prizes and special increments. It publishes a bulletin in which those
branches are encouraged who achieves their monthly targets. The main function is to
develop and attract the customers and depositors. It also manages:
1. Advertising policy

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2. Sales promotion
3. Schemes offered by the bank
Credit Division:
This division control over all credit operations like sanction of loans, Inland Bill Purchased
(IBP) and also keeps check over securities mortgage, hypothecating or pledge. It also fix the
rate of mark-up and other decisions concerning with the credit.
There is a credit committee, which consists of senior officers; Branches send the credit
proposal to head office credit division. Credit committee approves it after making a thorough
analysis. It also prepare the policies regarding the sanctioning loan, monitor loans and credit,
look after the portfolio of the bank, define credit limits against specified securities.
International Division:
This division is providing important services to the bank regarding the matters of
International Trade, Import, Export Letters of Credit, Travellers cheque etc.
It develops Correspondent Relationship with others on commission basis and this

helps to deal with the clients having import export business.
It handles treasury operations.
The Marketing and Spot Inspection cell, which were introduced by the bank, are
showing positive results in terms of achieving foreign currency deposit targets and
other foreign related business
Finance Division:
It controls the routine financial matters. The permission of special expenditure incurred in the
branches, and other such cases. The daily position and HO Extracts are daily sent to this
division by all the branches. This division not only estimates the profit and loss of every
branch but also prepare overall income statement and balance sheet of the complete bank. It
also keeps record of total deposits of the bank and then their classification in the form of
loans into different sectors of economy.
The basic functions are:

Monitoring the fiscal and financial policies of the bank.

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Deals in exploring means for investing surplus bank funds.
Maintenance and investment of Gratuity and Pension Funds of

the employees.
Recovery Division:
The recovery division, which was established in 1994 to assist in regularizing the difficult
loan accounts, has rendered valuable services in this respect. To effect recoveries in an
efficient manner, a policy has been framed in accordance with the guidelines issued by the
State Bank of Pakistan Moreover, recovery cells at regional levels have been set up to assist
the head office. This division looks after the matters of recovery of loan with the assistance of
legal advisor.
Audit & Inspection:

This department ensures appropriate system of checks and balances. It checks all the
irregularities, errors and forgeries if any, under the rules and regulations formed by the
Government of Punjab. For this purpose it doesnt only keep an eye on the branches in their
vicinity but also conduct surprise and comprehensive audits of the branches. This strategy has
improved working at the branch level. It not only points out the discrepancies but also tries to
solve it. Surprise audit maintain a good check on the overall working of the branch especially
of the side of finance.
Vision:
To be customer focused bank with service excellence.
Mission Statement:
To exceed the expectation of our stakeholders by leveraging
our relationship with the Government of Punjab and

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delivering a complete range of professional solutions with a focus on programme driven

products and services in the agriculture and middle tier markets through a motivated team.
Core Values:
Customer:
Customers are the first priority of the bank of Punjab.
Profitability:
For the prosperity of our stakeholders that allows us to constantly invest,
improve and succeed.
Corporate social Responsibility:

To enrich the lives of community where they operate.
Recognition and Reward:

It is for the talented and high performing employees.
Excellence:
In everything they do excellence.
Integrity:
There is integrity in all dealings.
Respect:
They feel respect for their customers and each other.
Goals:
Ensure that its performance in all facts of its operations more than matches that of its
competitors.
Maintains a comprehensive range of domestic and international activities.

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Maximum contribution from its key sources of personal Machines, Brands,

Representation and Capital.
Be innovation progressive and the need of its customer with the frame work of
operational and prudent risk taker.
Act as a reputable efficient and responsible organization.
Pursue personal policies which recognize the aspiration and performance of individual
and which are suited to the level of skills.
Objectives:
The objective of the bank is to:
Promote economic growth in the Pakistan by diversifying its

sources of income
Assisting in the development of its industrial structure.
The bank aims both to aid the establishment of new industries

and consolidate and strengthen the existing one.
The bank is mainly dedicated to serve private and semi-private

enterprises engaged in industrial activities with minimum local/GCC equity
participation of 51%. In addition the bank provides other services required by
industrial sector.

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The main objectives are:
The bank is to channelize the resources into sectors, which have suffered from neglect. Other
objectives included.
1. To provide speedier services to the common man.
2. To provide the highest rate of return to the shareholders by achieving good profitable
growth.
3. To enter into financing contracts and to mobilize resources in local and now in foreign
currencies consistent with the objects of the bank.

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PART TWO
BANK MANAGEMENT
SYSTEM:

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ORGANIZATIONAL STRUCTURE:
Senior
Executive Vice
President
Executive Vice
President
Senior Vice
President
Vice President
Asst. Vice
President
Asst. Vice
President-1
OG-I
OG-II
OG-III

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Cash Officer
Junior Officer
Clarical & Non

Clarical Staff

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CENTRAL MANAGEMENT HIERARCHY:
CHAIRMAN
BOARD OF
DIRECTORS
MANAGING
DIRECTOR
DIVISIONS

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BRANCHES
HIERARCHY ON THE BASIS OF POWER:

BOP is highly centralized and partially decentralized organization. All the decisions are made
by board of directors, member of executive committee and division heads. The centralized
structure help them to make big decisions while decentralized structure provide authority to
area managers and branch managers to make any decisions regarding their field of interest.
Following is the structure of BOP:
CHAIRMAN
MANAGING
DIRECTOR
GENERAL
MENEGER
GENERAL
GENERAL Mussaret Nazim
The Rise School of Accountancy
MENEGER
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REGIONAL
CHEIF
MANAGER
CLERICAL &
NON CLARICAL
Structure of region office Central II:
Comment on Organizational Structure of Bank of BOP:

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Division of Labour:
The structure of the Bank of Punjab is divided into division and these divisions are further
divided into departments. This type of structure helps the management in controlling the
operations of the bank effectively. Each division is responsible for its respective duties.
Span of Control:
Span of control among hierarchical structure is clearly defined. Each department reports to
the central department and then this central department reports to the head office.
Communication:
Communication among the organizational departments is easy. Horizontal and vertical
communication among departments is very effective.
Subsidiary
Punjab Modaraba Services (Pvt) Limited, Banks wholly owned subsidiary, is electively
managing First Punjab Modaraba. The net assets of the subsidiary stood at Rs.53.4 million as
at the year-end as against Rs.106.4 million on December 31, 2010.
2. Policy Formulation Process:

The board of director fully participates in the policy formulation of the bank and meets every
third month for this purpose. To deal with day to day operations, Board constituted a
Managing committee comprising of six of its members, including the Managing director and
five other directors who meet at least once every month.
The entire responsibility of policy formulation and management has been placed, under the
act, with the board of director. The Board is headed by the Chairman/Managing Directors
appointed by the Govt. that runs the affairs of the bank as per guidelines provided by the
bank.
The lending policy of bank is not only cautious and constructive but also based on principles
of prudent lending with maximum emphasis on security. As agriculture is considered as
backbone of our economy the bank of Punjab has introduced Kissan Dost Agriculture
Finance Scheme to small farmers.
3.Employees personnel in various Section

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EMPLOYEES Designation and Number:

Sr No Names Designation
1 Ijaz Ur Rehman Qureshi Head Audit & Risk Asset Review
2 Liaqat Ali Head Commercial Banking
3 Mian Muhammad Sharif Head Credit Administration
4 Ahmad Razi Ghazali Head Consumer Banking Division
5 S.M Atif Head Agriculture Credit Department
6 Mustafa Hamdani Head Transaction Banking
7 Shahid Waqar Mehmood Head Retail Banking Division
8 Abdul Razzaq Head Risk Management
9 Syed Mudassar Hussain Naqvi Head Legal
10 Moghis Bukhari General Manager HR
11 Nadeem Amir General Manger Finance
12 Sharjeel Masud General Manager Operation
13 Khawar Shahid Ansari General Manager Treasury
14 Faisal Azmat Khan General Manager IT
15 Salman Saeed General Manager Special Asset
Job Assignments, Qualification and matching benefits:

CASH DEPARTMENT
JOB SPECIFICATION:
The main purpose of cash department is that it deals in money. As bank is borrowing and
lending institution, therefore cash is the top most priority of Bank. Another aspect is that cash
department is for the security purpose, security in a sense that there should be no
embezzlement of funds or in money leaded to bank by any party or person.
The efficiency of bank is also related to this department the more efficient the bank is the
more strong and busy is the cash department. Cash department is divided into two i.e.
Receipts: -
The receipts side deals in
* Collection of funds.
* Acceptance of deposits.

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* Collection of utility bills.
PAYMENTS:
The payments side deals with check and ATMS.
DEPOSIT
JOB SPECIFICATION
It refers to the money received by bank from people, parties, institutions etc. The Bank keeps
these funds. People keep these funds with bank because of following purposes:
* Security
* Profit
* Gifts Schemes
* Proper usage of funds
Mostly the bank keeps these funds in two shapes i.e.
* Current A/C
* Profit & Loss A/C
There is no profit on current A/c and there is no limit of transactions. There is a facility of
credit also available that is running finance on current account. As there is a percentage of

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profit gives on PLS saving A/c and the number of transactions are limited up to 7 in a month.
The rate of interest on PLS Saving A/c is 6% other list of interest is given below.
ADVANCE DEPARTMENT
JOB SPECIFICATION
Advances department deals in following transaction.
Preparation and submission of proposals of Running finance, Cash finance, Demand

finance, Export finance, Staff finance, Finance against imported merchandise etc for
sanction of finance limit from the hire authority.
Preparation and posting of vouchering of all type of finance.
Accruals & recovering of Markup on finances on periodical basis.
Approval of transfer of funds through DD-TT, PO, MT, IBCO etc to various branches by
debiting the limits.
Preparation of weekly, monthly, quarterly, and annually statement to the hire authority.
Transfer of funds from one account to another account of the party taking the authority
letter.
Preparation of advances record.

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Timely submission of returns/reports, daily, weekly, monthly & quarterly.
Checking of computer outputs of the department on daily basis.
Balancing of all financing heads.
Maintenance of Stamp on hank & Balancing.
Recovery of finances Instalments.
A statement is prepared for the purpose of calculating average rate of mark-up on

different finances.
ISSUING OF L/G
Bank issues guaranties on behalf of its customers, whenever customers wants to complete a
project.
PRODUCER OF ISSUING OF L/G
When a limit of L/G is approved by the bank authority counter guarantees form I-B 30 is
signed by the party. On the next stage the bank kept cash margin on various percentage. Or
on the requirement of party T.D.R. are issued equal to cash margin on the requirement of the
party. However commission the rate of 0.40% per quarterly are kept oat bank. Or on the
approved rate of commission by the authority is recovered from the party.
CUSTOMER SERVICES DEPARTMENT

JOB SPECIFICATION
Receipt of Cheques from customers.

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Preparation of transfer delivery /clearing.
Maintenance of clearing proceed account.
Preparation and realization of OBC
DD payable advises posting and vouchering.
Early settlement of DD-II entries.
Balancing of DD payable.
Pay instalment of DD/TT/MTs & vouchering.
Pak Accounts reconciliation

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BOARD OF DIRECTOR
The board of directors of the bank comprises of the bankers, industrialists, businessmen,
holding impeccable reputation in the business community. The board comprised of:
Name Designation
Mr. Abdul Ghafoor Mirza Chairman
Mr. Naeemuddin Khan President & CEO
Mr. Javaid Aslam Director
Mr. Tariq Bajwa Secretary Finance/ Director
Mr. Tariq Mahmood Pasha Director
Khawaja Farooq Saeed Director
Mr. Junaid Ashraf Khawaja Director
Mr. Saeed Anwar Director
Dr. Umar Saif Director
Mr. Raza Saeed Secretary to the Board
MR. GHAFOOR MIRZA:

Mr. Abdul Ghafoor Mirza is a retired senior civil servant having 33 years of administrative
and management experience of various Government Departments. During his illustrious
career he served in Ministry of Production, Finance & Economic Affairs, Defence & Cabinet
Division. He became Federal Secretary, Ministry of Finance in 1998 and his last assignment
includes advisor to Ministry of Finance and Revenue, Government of Pakistan in 2008. He
has done his M.Sc. in Chemistry, MA in Economics and M.Sc. in Defence Strategic Studies.
He is presently working as Managing Partner /MD of M/s. W. Wien &
Associates, a management consultancy firm.
MR. NAEEM UD DIN KHAN:

Mr. Naeemuddin Khan is serving the Bank of Punjab as President & CEO since Sept 2008.
He has over 33 years diversified International Banking experience. He has the honor of
delivering presentations at Asian Development Bank, Manila regarding setting up of
Restructuring Bodies in Asian Countries. He also represented Pakistan in Egypts
International Economic Forum Cairo and delivered presentations on the Pakistans Financial
reforms and resolutions of the non-performing loans in Pakistan. He started his banking
career in ANZ Grindlays Bank in 1978. He served as Branch Managers of Grindlays Bank in
Lahore, Islamabad and Rawalpindi and other senior positions. In 1991 he joined Emirates
International Bank as its Chief Manager later he joined United Bank Ltd.

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MR. JAVAID ASLAM:

Mr. Javaid Aslam is presently serving as a Chairman, Planning & Development Board
Punjab, Government of Punjab. He joined civil service in 1980. He holds Masters in English
Literature from University of Punjab and M.Sc. Administrative Science & Development
Administration from University of York, U.K. He also holds diploma in Banking from
Institute of Bankers in Pakistan and Diploma in Investment Appraisal & Management from
Harvard University, USA. He holds a diploma in Executive Leadership Development, from
John F. Kennedy School of Government, Harvard University, USA.
MR. TARIQ BAJWA:

Mr. Tariq Bajwa is a serving Government Officer, presently he is Finance Secretary,
Government of Punjab. He did his LLB from University of Punjab and MPA from Kennedy
School of Government, Harvard University, USA. He held various positions in Government
and has 32 years diversified experience. His professional expertises include Public Policy
Formulation and implementation with specialization in public and corporate finance.
MR. TARIQ MAHMOOD PASHA:

Mr. Tariq Mahmood Pasha is a serving Government Officer, presently he is Secretary Auqaf,
Government of Punjab.
KHAWAJA FAROOQ SAEED:

Khawaja Farooq Saeed is a retired Justice of Lahore High Court, Lahore and former
Chairman, Income Tax Tribunal Pakistan. He holds M.A and LL.B from Punjab University.
He holds Role of Honor from Government College, Lahore. He was awarded Pakistan
National Blue, three Gold, three Silver and three Bronze medals in National Games of
Pakistan. He has attended dozens of international conferences, seminars in the field of Fiscal
Law, enjoinment sports for all, sports for peace and sports leadership, in and outside Pakistan.
He also contributed various papers and delivered a number of lectures.
MR. JUNAID ASHRAF KHAWAJA:

Mr. Junaid Ashraf Khawaja is Chief Executive Officer of M/s. ASSAC Corporation, a
leading name in exports of hand knitted rugs and sporting goods. He has done his B.Sc.
(Textile Technology) from Philadelphia College of Textile & Sciences and MBA (Finance)
from Philadelphia University, Philadelphia, USA. His areas of expertise include Growth

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Management, Business Development, Leading & Developing Teams. Budgeting,

Forecasting, Supply Chain Management & E-Commerce Strategy & Development.
MR. SAEED ANWAR:

Mr. Saeed Anwar is a senior retired banker having 26 years of varied and rich banking
experience. He started his career in UBL in 1967 as an Officer; he rose to the position of
SEVP. He remained member Board of Directors United Bank Ltd. and Allied Bank of
Pakistan during the period from 1996 to 2002.
He was associated as a Chairman of National Savings Government of Pakistan on a brief

assignment during Oct-2000 to Jul-2001. Thereafter, he served on various advisory
assignments of United Bank Ltd., SMEDA, Zari Taraqiati Bank Ltd., Global Trade
Corporation, CANADA. Presently, he is a senior advisor of Abacus Consulting, Lahore.

He holds B.Sc. (Hons) Chemical Engineering and M.Sc. Chemical Technology from Punjab
University, Lahore. He is also a fellow of Institute of Bankers in Pakistan.
DR. UMAR SAIF:

Dr. Umar Saif is currently working as Chairman of the Punjab Information Technology
Board (PITB), heading all public sectors IT projects in the province of Punjab. He is a
tenured Associate Professor of Computer Sciences in the School of Science and Engineering
at Lahore University of Management Sciences (LUMS). He has been appointed as Vice
Chancellor of I.T University of the Punjab.
Dr. Umar Saif is a computer science research specialist, holding PhD from University of
Cambridge (2001) and post doctorate from Massachusetts Institute of Technology (MIT) in
2002, both in computer sciences. He has authored several influential publications which have
been featured in popular media including New York Times, Washington Post, Wall Street
Journal, CNN, BBC and Dawn News. He is the first Pakistani to be named as one of the top
35 young innovators in the world (TR35) in 2011 by MIT Technology Review.
Matching Benefits:
The employees are provided with compensation and benefit and also an employee can have
holidays named as privileged and casual leaves. There are scholarships and stipends for the
employees, children. Employees are also rewarded with bonus, medical facilities, insurance
and job security.

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Bell curve award:

it is a performance award. These are specific grader (A, B, C) given to every employee
according to his performance that the end of the year the employee with outstanding grades
gets a promotion or 7 basic salaries as a bonus.
Beside this Eid bonuses are also given to every employee on both Eids. There is a travelling
allowance TADA for auditors. Petrol is also given to the employees but this incentive is not
for every employee it start with assistant vice president (250 liter petrol per month) to top.
For top managers there are managerial allowances and mobile facility is also given to them.
Career Ladder:
The Bank selects and appoints staff with appropriate academic qualifications, talent, skills
and/or experience through a methodical selection process, free from discriminatory bias and
based soundly on the principle of EOE Equal Opportunity Employment).
Career development programs are designed to prepare employees to meet the challenges of
the workplace. All employees have an opportunity to take benefit from such programs which
are offered at all levels to meet the specific needs of the staff & organization.
The Bank has well defined Human Resource policies to ensure staff career progression and
growth through staff evaluation, job rotation, job enrichment, promotions and succession
planning. The Bank also pursues a compensation philosophy of establishing and maintaining
consistency and equity within the organization as well as aligning its overall remuneration
packages with the marketplace.
The bank is aware of continues training of its employees due to emergence of day to day
improved management and other business techniques. The bank has its officer training
institute (OTI). This OTI is full time dedicated towards the development of its employees.
Outside OTI employees are also provided with opportunity to attend training session and
seminars held by PBA, SBP and IBP etc.
To encourage the effort and loyalty of employees BOP rewarded them with promotions and
bonuses. The bank also facilitates them by providing group life insurance and medical
insurance. Human resource department play a vital role in the development of people within
the organization. Bank of Punjabs HR process include attracting talented people,
maintaining a well trained and highly motivated work force, managing diversity, dividing
effective compensation system and managing layoffs, healthcare and pension cost.

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JOB DISCRIPTION:
The job description form of the bank describes the job to the newly hired employee. The job
description form has the following format.
Name
Employee no
Grade
Designation
Posting
Department/ unit
Branch
Functional area
Specific function of this job
Principle task performed
Job workload

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Specific knowledge and skill needed
Education/ qualification
Work experience
Job depth

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Methods:
RECRUITMENT:
In the bank of Punjab the recruitment is done by attracting employees through internet,
newspapers and company website. Since the every outset the bank of Punjab has placed
great premium on merit. The bank devised its officer training schemes in early 1990s. The
policy of recruitment is purely on the basis of merit, found its fullest expression in the
diploma results announced by the institute of bankers in December 1991, July 1992 and
January 1993.
SELECTION:
Selection builds on recruiting and involves decisions about whom to hire. It is an exercise in
prediction. In BOP the managers follow a proper process of selection. They use a no of
selection tools like application forms, written test, and interview and background
investigation. The most used selection devises are preliminary test, final test, preliminary
interview and final interview.
ORIENTATION:
A new employee when he hired need some kind of introduction to his/her job and the
organization. In orientation the employee is made familiar to his/ her job, work environment
and realistic job interview. In BOP the newly hired employee is introduced with work unit,
working hours, pay procedure, rules and regulation and HR policies and benefit.
EMPLOYEE TRAINING:
In BOP the officer training institute is made for training the employees. Training of
employees is based on their required skills and position. They are trained with interpersonal
skills like communication, customer services, diversity and culture awareness, leadership
coaching, technical skills about their job, information technology and computer application
skills.
COMPENSATION & BENEFITS:

The employees are provided with compensation and benefit and also an employee can have
holidays named as privileged and casual leaves. There are scholarships and stipends for the
employees, children. Employees are also rewarded with bonus, medical facilities, insurance
and job security.
Bell curve award it is a performance award. These are specific grader (A, B, C) given to
every employee according to his performance that the end of the year the employee with

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outstanding grades gets a promotion or 7 basic salaries as a bonus. Beside this Eid bonuses
are also given to every employee on both Eids. There is a travelling allowance TADA for
auditors. Petrol is also given to the employees but this incentive is not for every employee it
start with assistant vice president (250 liter petrol per month) to top. For top managers there
are managerial allowances and mobile facility is also given to them.
Major Managerial policies:

When organization needs employees then they show job description and job specification.
But before that they analyze the job by gathering information from employees and identified
job specific characteristics. Currently bank is trying to revise its HR planning policy. In the
past few months the HR planning was not well as the shortage of staff indicates some loop
holes in this matter.
The bank face serious problem of employees shortage, with the emergence of foreign banks
and their attractive pay structure BOP employees move towards them. Now when I joined
the bank as an internee I found its HR is very well coordinated and managed and HR
planning is very strong. During my internship period I experienced 3 interviews session for
job candidate and training are held very frequently. Usually 2 training sessions per week
must be held at regional office.
PLANNING:
The planning process of BOP is much formalized; they follow clear cut rules and following
a hierarchy style. The BOP have integrated network of goals in which the accomplishment
of goals at the higher level serves as the mean for achieving the goals at the operational
level. Bank of Punjab has multiple goals but it is a profit seeking organization so it emphasis
on one profit making goal. The basic strategic plan of the bank of Punjab is establishing the
organizations basic goal that they desire to achieve for profit making.
The short term plans deal with the minor goals of the bank and long term deals with major
plans. The bank stated only those goals which give benefit to stakeholder. All long term and
short term goals are made and approved by the board of directors and BOP management.
The head office set the goals and makes plans for the achievement of goals according to the
standards set by state bank of Pakistan.
BOP use formal planning but prefer group decision making style for planning.The planning
procedure start with the planning document which is made by head office and then it
circulate in all branches of the bank. The branch manager shares these plans with the
employees working under him.

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BOP use multi techniques for planning that are forecasting and benchmark. Bank of Punjab
use strategic planning with time frame of long term and the nature of planning normally
directional which can be change according to the requirement.
ORGANIZING:
Organizing of BOP involves assembling and coordinating the human, financial, physical
information and other resources needed to achieve goals. It include attracting people to the
organization, specifying job responsibilities, grouping jobs into work units, marshalling and
allocating resources and creating condition so that people and thing work together to
maximize success.
The bank of Punjab has formal arrangements of jobs. In bank work specialization is an
important organizing mechanism. The bank of Punjab is departmentalize on the basis of
geographical territory and functions such as credit policy division, treasury and international
division, marketing division, administration division, finance and share department etc. the
bank of Punjab running its 273 branches at all major business canters.
So a single manager had to handle a large no of employees at one time which is a difficult
task for him. He has to keep an eye on their work and monitor them. Top level managers tell
the other managers what to do so the chain of command in the bank is not very stick.
Top level management takes all the decisions about the organization. Employees have no
right to take decision but they can give their opinion and suggestions to the top management.
Now the bank moving towards the decentralized approach as since the lower level managers
have more detailed knowledge about the problems and their decisions than do top managers
so the authority has been pushed down to the regional and operational levels and top level
managers take their suggestions into their consideration. Employees in the bank are guided
by the rules and procedure about the organization. The bank of Punjab is moderately
formalized.
RULES AND REGULATION:

The bank has proper rules and regulation policies. The bank is following a presidential
order system. The bank follows service rules that are issued by secretariat.
COMMUNICATION:
Communication in the bank of Punjab is very friendly and formalized. They use modern and
traditional system for communication.BOP use both downward and upward communication
system.

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Meetings are held in all major regional offices, to provide a forum where by employees can
interact with senior management and discuss market trends and business update with them.
They also provide a platform for employees to voice their concern and suggestions. Any sort
of information communicated in the bank is through group meetings, telephone, formal
presentation, memos, traditional mails, fax machines, employees publications, conferences
and electronic mails.
LEADING:
The bank of Punjab is one of the leading banks in Pakistan. It has always maintained an
optimistic view on the future outlook for Pakistan. Bop ranks as 2nd top ten traded
companies and as holds the 7th position in top 10 gainers of the countries.
LEADERSHIP STYLE:
In BOP the top level managers and supervisors use different leadership style to attain their
goals and influence their employees. Their motivating styles could be in the form of their
task, relationship, delegation, participation and communication.
MOTIVATION TECHNIQUES USED IN THE BANK:

Motivating high level of employee performance is an important issue of any organization.
The bank of Punjab has highly motivated employees because BOP knows this fact that they
can not go forward without their human resource, so they give lots of rewards, incentives
and recognition for their employees performance. It includes bonus, medical facilities,
insurance and job security.
The organization gives loan for automobiles houses and other things with low rate of
interest. Employees can also get some cost of living allowances by BOP like medical
allowances, house rent and manage allowances. BOP facilitates their every regular
employee with EFU insurance facility and it is also offered to their children and wife as
well. Medical facilities are also given.
TEAM WORK:
Nowadays all the organization promotes team working atmosphere because it increase the
productivity level. Especially in the banking sector team and group task are more
encouraged. BOP also work in team form. Although every employee is trained to do every
kind of work individually but there is a division of labour.

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ORGANIZATION BEHAVIOR:
CONTROLLING:
The official work of BOP is done under the supervision of two authorities. One is state bank
of Pakistan as they make rules and regulation that must be followed by bank and 2nd head is
BOP head office which are consist of board of directors, audit & inspection, president and
general managers who make policies and rules for the bank and all the branches work
according these polices and rules & regulation.
The bank of Punjab uses two approaches of control to monitor employee performance and
activities.
1. Bureaucratic control
2. Clan control
The bank use mix of both control. The bank use rules and regulation for bureaucratic control
and values believes and norms for clan control.
Controlling in the bank of Punjab is important because of 3 main reasons:
1. To check whether things are going as they are planned
2. To avoid wrong use of empowerment
3. To protect bank from sudden crisis, security alert, because

companies who have aggressive control can face less disruption of their business.
The bank does not use the whole controlling process to monitor activities and performance.
It just measures the performance of employee and managers take immediate action to
correct the deviations and inadequate standards.
CONTROLLING PERFORMANCE OF BANK:

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The overall performance of bank is measured in two ways
1. The performance of all branches and regional offices
2. The overall performance of bank
The performance of bank is measured by checking the quality and quantity of services being
provided to customers and also through audit.
CONTROLLING AGAINST FRAUDS AND ILLEGAL

ACTIONS:
BOP has its own audit department that measured the performance and checks the illegal
work and frauds on yearly basis; and now most precisely it is done regularly after six month.
There are two types of audit external and internal. Internal audit is usually both for branches
and the whole organization. There are normal inspections and supervise inspections to check
the performance of bank and it is done by the audit committee.
External audit is done by some other audit organization. BOP has its external audit. Its
purpose is to check that there should not be any irregularity in the revenues, profit, lose,
services or accounts of the bank. The external audit is usually done by state bank of
Pakistan.

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PART 3:
MANAGEMENT/
ADMINISTRATIVE STYLE

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Management/Administrative style:
The Federal Bureau of Prisons (BOP) uses a strategic planning approach to management.
Strategic planning is driven by the BOP's mission and vision statements, which are
supported by seven broad correctional goals, each of which, in turn, is supported by specific
objectives. The BOP's Executive Staff holds regular planning sessions to ensure that the
agency's strategic goals continue to address the major issues and challenges that face the
agency both today and into the future. The BOP's national strategic planning goals keep
resources and efforts focused on activities that directly support the agency's mission
Population Management:
The Federal Bureau of Prisons (BOP) will proactively manage its offender population to
ensure safe and secure operations, and work toward ultimately achieving an overall
crowding level in the range of 15 percent.
Human Resource Management

The BOP will have a competent, diverse workforce operating within a professional work
environment prepared to meet the current and future needs of the organization.
Security and Facility Management

The BOP will maintain its facilities in operationally sound conditions and in compliance
with security, safety, and environmental requirements
Correctional Leadership and Effective Public Administration:

The BOP will manage its operations and resources in a competent and effective manner
which encourages creativity and innovation in the development of exemplary programs, as
well as excellence in maintaining the basics of correctional management. The BOP
continually strives toward improvements in its effective use of resources and its efficient
delivery of services.

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Inmate Programs and Services:

The BOP provides services and programs to address inmate needs, providing productive
use-of-time activities, and facilitating the successful reintegration of inmates into society,
consistent with community expectations and standards.
Building Partnerships:
The BOP will continue to seek opportunities for expanding the involvement of community,
and local, state, and Federal agencies, in improving the effectiveness of the services it
provides to offenders and constituent agencies. The active participation by BOP staff to
improve partnerships will allow the BOP to carry out its mission within the criminal justice
system and to remain responsive to other agencies and the public. The BOP will develop
partnerships to focus the shared responsibility for the establishment of a supportive

environment promoting the reintegration of offenders into the community
Counter-Terrorism:
The BOP will provide for public safety and security by focusing on the prevention,
disruption, and response to terrorist activities.
CODE OF BUSINESS PRINCIPLE

Act with honesty and integrity including ethical handling of
actual or apparent conflicts of interest between their personal, financial, commercial
interest and responsibility to BOP.
Give a true a fair view of the state of affairs of the bank in the
reports and documents that BOP files with or submit to shareholders. Government
authorities and stock exchange or otherwise makes public
Respect the confidentiality of information acquire in the course

of their work, except or otherwise legally obligated to disclose and not to use such
confidential information of third party, which BOP has rightfully received under on

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disclosure agreement a well:
Achieve responsible use of and control over all assets and

resources employed or entrusted.
Exercise good judgment to ensure the safety and welfare of its

employees, agents and contractor and to maintain a corporative efficient, positive
harmonious and productive work environment and business organization.
To comply with the trading codes of conduct as lay down by

BOP.
Proactively promote and be an example of ethical behaviour as

a responsible partner among peers, in the work environment and community.
Impact on the moral and efficiency of the workers:

The Bank has a defined guiding principle for all its social initiatives. An essential element of
the Banks Corporate Responsibility is its community initiatives which aim at empowering
individuals at the bottom of the pyramid through developmental initiatives.
The major measures taken by BOP include:
Womens Entrepreneur Finance Scheme (WEFS) to assist women to launch or

expand their business.
In order to promote the habit of saving, Gharalyoo Saving Scheme for household
ladies and Young.

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Lions Saving Scheme for children have been introduced.
Financing of 20,000 vehicles to educated unemployed youth.
Expansion of Branch network in less developed areas.
Participation in different social events:
Punjab Youth Festival
Celebrating Womens Day
Tennis training camp for Youth & Children
Lahore open polo Tournament
PART 4

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PRODUCTION FACILITES
BOP PRODUCT LINE

Deposit Products include
Current Account
BOP Basic Banking Account
BOP Tijarat Account (LCY)
BOP FCY Supreme Current Account
Profit Loss Sharing Term Accounts
BOP Pehlay Munafa Scheme

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Corporate Premier Term Account
Munafa Hi Munafa Term Account III
Bai Missal Term Deposit Account
Profit Loss Sharing Cheque Accounts
PLS Saving Account
Senior Citizens Saving Account
Gharayloo Saving Account
Ziada Munafa saving Account
PLS-Saving Profit Plus Account
Corporate Premier Account
BOP PLS Supreme Saving Account
BOP FCY Supreme Saving Account
Commercial Finance
Running Finance
Demand Finance
Cash Finance
CNG Filling Station Scheme
Auto Lease Financing Scheme
Car Dealers Financing scheme
Karobar Barhao Scheme

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Fertilizer Dealers Financing Scheme
Ali Akbar Group - Franchise Financing Scheme
Atlas Honda Limited - Authorized Dealers Financing Scheme
Financing Scheme - Purchase of Office/Shops
Consumer Finance
Aasaish Loan
Quick cash
Car Loan
House Loan
Smart Cash Personal Loan
BOP Motorcycle Loan
Agriculture Credit
Green Tractor Lease Finance Scheme
Agric Finance Branches
Agricultural Finance Scheme
Kissan Dost Tractor Scheme
Second Hand Tractor Lease Finance Scheme
Kissan Dost Aabiari Scheme

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Kissan Dost Mechanization Support Scheme
Kissan Dost Farm Transport Scheme
Kissan Dost Eslah-E-Arazi Scheme
Kissan Dost Live Stock Development Scheme
Livestock Breed Improvement Trough VVW
Kissan Dost Commercial Agro Services
Kissan Dost Agric Mall Finance Scheme
Corporate Farming Finance Scheme
Commercial Lease Finance Tractor Scheme
Demand Finance-Sheds Construction and Civil Works
Lease Finance Facility for Milk Animals
Running Finance-Livestock/Poultry and Fish Farms
Kissan Dost Model Dairy Farms (PDDC)
Kissan Dost Model Milk Collection Canter (PDDC)
Kissan Dost Green House Finance Facility
Kissan Dost Cold Storage Finance Facility
Scheme for Controlled Sheds
Lease Finance Facility for Installation of Biogas Plant
Group Financing to Small Farmers
Clean Credit Facility through Syngenta Franchisees
Zarkaashat Drip Irrigation System

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Markup of Schemes
SERVICES
ATM facility
Online banking
E banking
Debit card
Consumer financing
Agriculture financing
Corporate financing
Commission free remittance
ZARCO exchange remittance
Collection of utility bills
Lockers facility
Account opening
Prize bond

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Production Operations:
BOP Current Account:
The Accounts shall be opened upon submission of duly filled-in Banks prescribed
Account Opening Form on submitting all such documents as may be revised by the
Bank. The Bank reserves the right to demand such relevant documents even after
opening of account as deemed necessary.
The Accounts shall be opened with an initial/minimum deposit as stipulated by the Bank
from time to time unless specifically exempted. The Accounts may be opened singly in
one name or jointly in two or more names.
Account for the recipient of Zakat or recipient of grants from Bait-ul-Mall, maybe
opened with an initial deposit of Rs.100/-
For New Customer

All CD accounts which are not operated upon by the account holders for a period of one
year will be classified as dormant. After passing one year in the dormant status, that is,
no operation in the account for a continuous period of two years, the account shall be
classified as inoperative.
For Existing Account Holders

The period of conversion of a normal CD account to dormant has been enhanced from
06 months to one year, since last operation in the account, with effect from January
2008.
The branches shall ensure completion of all the formalities required by State Bank of
Pakistan vide Prudential Regulation No.M-1with regard to KNOW YOUR
CUSTOMER.
Basic Banking Accounts:

The minimum initial deposit will be Rs.1000.
No profit will be Payable.
No fee (service charges) for maintaining such accounts will be charged.

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There will be no limit for maintain minimum balance. In the cases, there balance in BBA
does remain "NIL" for a continuous 6 month period, such accounts will be closed.
Account holder will be allowed a maximum of 2 deposit transactions and 2 cheque

withdrawals, 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.
BOP Tijarat Account (LCY):
1) The rent free locker facility will be allowed on availability of locker and after maintaining
average balance for six months.
2) In order to further facilitate the managers in targeting customers, it will be at the

discretion of the manager to offer the incentive package from day one. However it will be
the responsibility of the branch to ensure that customer completes the criteria as per above
table otherwise recover the charges waived
3) The incentive package will be reviewed on the basis of deposit procured vis--vis
cost/benefit and it can be revised downward.
FCY Supreme Current Account:

Foreign Currency Accounts can be opened in four currencies namely US Dollar, UK Pond
Sterling, Yen and Euro at any of the authorized branch
Banks Policy:
Any person having valid CNIC or Passport with valid VISA (in case of foreign national)
FCY account can also be opened by tendering cash
Account can be opened with $500 or equivalent in other currencies

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Profit Loss Sharing Term Accounts:
BOP Pahlay Munafa Scheme:

PRODUCT:
This is a Fixed Deposit product with free ATM/Debit Card. The tenure will be 3, 6, 12, 15
and 18 months. The product is available for all types of customers who are eligible to invest
in term deposit as per Banks criteria. The term account can be opened singly or jointly.
Benevolent/Charitable Funds, Trusts, Cooperative Societies, Clubs etc can also invest.
AMOUNT OF DEPOSIT:
Minimum deposit is Rs.50,000/-

While No Maximum deposit limit
BOP PAHLAY MUNAFA DEPOSIT SCHEME

(Profit In Advance):
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 half
yearly and terms & conditions of profit and scheme.
The provisional profit will be paid in advance i.e. at the time of investment.
Zakat will be deducted as per law, wherever applicable.
Withholding tax will be deducted as per law.
The above expected rates are effective from 23-07-2013 for all fresh deposit
procured/accounts opened under the BOP Pahlay Munafa Scheme. These rates will not be
applicable to deposits already booked in these schemes till the time they are matured.
Munafa Hi Munafa Term Account III:
The product is available for all types of customers who are eligible to invest in term deposit
as per Bank's criteria. The term account can be opened singly or jointly.

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BOP Bai Missal Term Deposit:

The product is available for all types of customers who are eligible to invest in term deposit
as per Bank's criteria. The term account can be opened singly or jointly.
The profit will be paid on maturity along with principal amount Withholding Tax and Zakat
will be deducted as per law, wherever applicable.
Rules governing normal PLS Term Deposit shall apply i.e. In case of pre-mature
encashment, corresponding rate applicable to the period of retention then declared by the
Bank will be paid, provided deposit is kept for a period not less than 7 days. Please note
profit shall be paid on prevalent normal term deposit rates.
All other terms & conditions circulated earlier will remain the same.
Profit Loss Sharing Cheque Accounts:

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 reserves the right to change the Account Number or any part of it in order to meet
its book keeping/administration requirement. However, intimation of change in the account
number shall be sent to the account holder.
Account for the recipient of Zakat or recipient of grants from Bait-ul-Mall, maybe opened
with an initial deposit of Rs.100/-
Deposit may be accepted from minors provided the account is opened and operated through
a guardian. The Account thus opened will continue to be operated upon by the guardian
even if the minor attains the age of majority. The necessary consent to this effect will be
obtained at the time of opening of the account. The orders of the court will, however, be
followed in case the guardian is appointed by the court.
BOP Senior Citizen Saving Accounts:

This is a saving bank product available for all senior citizens i.e. persons of 55 years and
above who are eligible to open a saving account as per Banks criteria. The account can be
opened singly or jointly (husband & wife) provided either of them is of 55 years or above.
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

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category, the Bank reserves the right to recover and forfeit the profits paid or not to give any
profit. The profit slab is as follows:
Minimum Monthly Balance * Expected rate of profit
200,000/- 6.00 %
Rs.200,001 up to 400,000/- 6.50 %
Above Rs.400,000 7.50 %
This product is governed under PLS rule i.e. the rates mentioned are expected and the Bank
reserves the right to revise the rates and terms & conditions of profit and the scheme under
Profit & Loss sharing system.
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
monthly basis in the respective account.
Profit once disbursed will not be recovered in case of decrease in rate at the time of
announcement of Half Yearly profit rates. However in case of rise in profit rate the difference
amount will be paid. Unlimited transactions (debit/credit) allowed.
BOP Gharayloo Saving Account:

This is a saving bank product available for all females who are eligible to open a saving
account as per Banks criteria. The account can be opened singly or jointly with husband.
The Main Features Are:

A customer can open only one BOP Gharayloo Saving Account singly or jointly with
husband 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 and forfeit the profits paid or not
to give any profit.
Minimum Monthly Balance * Expected rate of profit
Rs. 0 up to 10,000/- 6.00 % p.a.

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Above Rs. 10,000/- 6.75 % p.a.
This product is governed under PLS rule i.e. the rates mentioned are expected and the Bank
reserves the right to revise the rates and terms & conditions of profit and the scheme under
Profit & Loss sharing system.
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
monthly basis in the respective account.
Profit once disbursed will not be recovered in case of decrease in rate at the time of
announcement of Half Yearly profit rates. However in case of rise in profit rate the
difference amount will be paid.
BOP 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 Banks 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 Banks Schedule of Charges.
BOP Profit Plus Account

Individuals, corporations, organizations and various Provincial / Federal government
departments can open accounts under this 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 provisions.

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Corporate Premier Account

This account has been introduced for corporate clients. This is an operating/cheque 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. The deduction of Zakat and Withholding
tax will be applicable as per law of the land. Profit payable on monthly basis
Commercial finance
Running Finance
Against Pledge of Share
Against Government Securities
Against Hypothecation of Stocks
Pledge Of Shares:
This facility is generally extended to companies or individuals on selective basis against

pledge of tangible securities such as Shares. Such financing is supportive to secondary
Capital Market concept. The facility is required to be adjusted periodically or within the
period as specified in the Sanction Advice/DAC. Given that Stock Market in Pakistan is
volatile, banks are required to refrain from extending loans to the market players who are
engaged in speculations for short term Gains, which quite often they fail to make,
consequently rendering the 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.
Provide unsecured credit to finance subscription towards floatation of share capital

and issue of TFCs.
Take exposure against the non listed TFCs or the shares of companies not listed on
the Stock Exchange(s).

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Take exposure on any limited company against the shares/TFCs of that company or
its group companies.
Take exposure against sponsor directors shares (issued in their own name or in the
name of their family members) of banks/DFIs.
Take exposure against the shares/TFCs of listed companies that are not members of
the Central Depository System.
Minimum Margin Requirements:

Exposure against Shares of Listed Companies shall be subject to minimum margin of 30%
of their current market value as per prevalent Prudential Regulations, which may at the
discretion of the Bank be set higher. However, 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, on the basis of approved Credit Policy and prior written authority from
the borrower. Exposure against TFCs rated A and above, by State Bank of Pakistan
approved Credit Rating Agency, shall be subject to a minimum margin of 10%, while the
exposure against TFCs rated A- and BBB shall be subject to a minimum margin of
20%.
Demand Finance:
Credit facilities extended against registered mortgage of property (i.e., land/buildings
constructed or to be constructed) is by nature classified as a Secured Advance. A formal
charge on the property is established and recorded with the Registrar Land and Property
termed as registered mortgage. Advances are also made against equitable mortgage of
property, whereby the original title Deeds are deposited with the Bank as Security and the
charge is registered with the Registrar SECP.
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.
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, however in rare
cases DAC shall be issued where some of the secondary nature documents are not

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received for acceptable reasons and that the deferment is approved for a specified
period by the level of the authority as given below: -
Formal approval for deferment of specified documents from Credit Committee shall
be necessary, in terms of Credit Policy.
DAC issued where receipt of some of the documents is deferred shall clearly
highlight the deferment approval and the period of deferment. Extension in the
deferment period, if required further shall require appropriate level of credit
approval.
Cash Finance
This facility is generally provided against pledge of goods. Under this type of financial
accommodation the facility amount is disbursed in specially opened account for the purpose.
The pledged goods are released to the borrower against cash payment only. In case the
goods pledged are seasonal in nature, the customer would be required to adjust the facility
before the season ends. Rollover shall not be allowed.
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, do
not require special Storing arrangements / conditions and have short expiry period.
Easily marketable and their price is not highly fluctuating.
If so higher margins shall have to be approved & retained where variation in pricing
is observed during periodic evaluation, the customer shall be advised to make good
the shortfall in the drawing power.
Where variation in pricing is observed during periodic evaluation, the customer shall
be advised to make good the shortfall in the D.P. The borrowers hold an absolute un-
encumbered title to the goods .
Womens Entrepreneur Finance Scheme:

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BOP launched a Womens Entrepreneur Finance Scheme (WEFS) a one of its kind
financing scheme. Under this scheme an amount of RS. 2 billion has been allocated to assist
women to launch or expand their business across Punjab.
The scheme provides working capital for businesses related to day care unit, personal care &
grooming, eateries, fitness & fashion, vocational institutes, educational & teaching
institutes, catering & event management and furniture & other projects.
All eligible women aging between 30 to 55 years with proper documentation and a
minimum 3 years experience in relevant field can apply for the loan.
Agriculture Credit Department:

Our strategy on agriculture credit is to selectively grow our asset book on one side and focus
on recoveries from non performing loans on the other. The Bank is focusing on corporate
farmers, commercial entities and individuals dealing in agriculture to provide production
loans. Besides, tractor financing and loans for farm mechanization, green houses, cold
storage etc are areas of interest for the Bank.
The products being offered by Agriculture Credit Department include:
Kissan Dost Running Finance Facility
Kissan Dost Lease Finance Facility
Kissan Dost Cold Storage Finance Facility
Kissan Dost Green House Finance Scheme
Kissan Dost Livestock Development Scheme

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PART 5:
BANK MARKETING
MIX:

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Marketing mix of the BOP:

The concept of marketing is very important in the business literature.
Marketing strategy is a combination of a number of marketing elements according program
of mix, then it competes, sta ys and earns profit in the market.
In case, the integration of the various elements of marketing is defective, the firm cannot
fight out its rivals in the market and ultimately suffers losses.
Marketing strategy is defined as:

The set of controllable tactical marketing tools that the firm blends to producein response to
wants in the target market.
The various elements of marketing strategy are as follows;
Products
Promotion
Price
Place
Marketers use numerous tools to elicit desired responses from their target
market. These tools constitute a market mix.
Marketing mix is a set of marketing tools that the firms use to pursue its
marketing objectives in the target market.
The marketing mix of Bank of the Punjab while successfully penetrating

the key domestic markets through strategic expansion
And business diversification, we remain alive to the challenges emanating from the
developments in the global financial markets; the opportunities and threats engendered by
greater deregulation, and increased customer expectations. These provide us the impetus to
make the best use of available resources, including modern technology, to meet the
challenges ahead.
Historicall y, BOPs core marketing focus for its asset base has been the
middle and upper middle business houses (including wholesales and manufacturers)
operating in the large urban canters of Pakistan, which are primarily oriented towards foreign
trade. This segment contributes significant revenues to the Bank. The liability side remains
focused on the middle and upper middle class, retired and serving government and
armed forces personnel, and mid size business houses.

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Marketing deportment the bank of Punjab:

The marketing department of the Bank of Punjab doing wonderful job.
Because of competition in market there are many other Bank is exiting in the market at that
time Bank of Punjab also run a marketing campaign specially in cotton belt for limit from
Ginner & Oil Miller. Bank of Punjab use a marketing strategy with different way
and different scheme
UTILITY SERVICES:
Keeping in view the difficulties faced by the general public BOP has taken the initiative to
provide service for collection /receipt of utility bills on behalf of WAPDA,Sui Gas ,Paktel
,Interphone and WASA from 9.00am 4.00 p.m. all the branches throughout the
countries are observing this practice to ease the long queues lined up at the counters of
banks.
COMPUTERIZATION/MODERNIZATION:
In order to keep up with the pace of innovation the information industry; the bank
has launched its Web site. Readers can view our web page and covers with the
management and can also send their queries /suggestion on the E-mail at the
address given on the last page.
The bank of Punjab has also planned to complete its branch automation
through computerization for its major working branches at the end of the year 2005.So for
29 branches have been computerization. The treasury at Karachi has been linked with
our head office through on line system exclusively designed developed for eliminating the
communication gap.
REUTERS information system has been installed at international division to

maintain track record of foreign exchange and currency fluctuation. In order
to safeguard the interest of depositor, close circuit TV cameras have also been installed
at all the main branches of the bank.
PUBLICATIONS:
The Banks biannual magazine Pakistan Banker is expanding the circle of its a
acknowledgement. Owing to the diversity of topics and literal standards of material, the
magazine has won top awards of best publication in the country. The Banks
monthly in house Newsletter serves as a source to develop a close intra-institutional
association.

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Benefiting from the banks growing balance sheet size, this division is no w gaining
momentum and our long term aim is to develop it into an independent
strategic business unit (SBU). This would enable the bank to acquire, develop and
retain specialized abilities, and enhance our focus on serving the emerging needs of the
corporate clients.
Products/services of the bank of Punjab:

HOUSING FINANCE
Transport finance
General purpose finance
SERVICES
ATM facility
Online banking
E banking
Debit card
Consumer financing
Agriculture financing
Corporate financing

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Commission free remittance
ZARCO exchange remittance
Collection of utility bills
Lockers facility
Account opening
Prize bond
Analysis of bank marketing/sales procedure:

HOUSING FINANCE:
Entitlement:
100 basic salaries or CSR of 50% whichever is lower, up to max. Of Rs15M.
Type of Property:
Residential house/apartments/flats/plot (urban)
Rate of Markup:
Cost of funds with a capital of 6% p.a.
Amount up to Rs300, 000 is mark-up free for non-clerical staff.
Tenure of Loan:
25 years from the date of disbursement of remaining length of service whichever is
less.

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Eligibility:
3 years of continuous service with BOP.
For experienced staff total 5 years including 1 year of continuous service.
Disbursement:
For purchase of constructed house,

100% payment through cross payment order/demand draft in the name of seller.
For purchasing plot on land and construction there on,

The amount of loan will be released in four instalments
50% purchase of plot
10% for foundation
20% for raising structure
If the employee already owns a plot in his/her own name or in the name of
spouse,
the finance amount sanctioned for construction of house will be dispersed within 3
instalments.
10% for foundation
40% for raising structure
40% for finishing
For purchase of semi-constructed house and/or construction/renovation

there on,
The finance amount sanctioned will be disbursed as under
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Payment of value of semi-constructed house to the seller through cross payment

order/demand draft.
Amount approved for additional construction will be dispersed as per requirement.
For additional construction of semi-constructed house or renovation,

The financing amount sanctioned will be dispersed on the basis of amount needed for
completing the property.
RE-AVAILMENT:
Terms and conditions for applying the enhanced limit are as follows
Employees who have already availed the housing facility previously and adjusted it.
Who have already availed it which is still outstanding?
At least 7 years of period should lapse between the new requests.
2nd finance can be availed only once.
The facility will be availed for following purposes:

In case of further construction or for acquiring better alternative.
For financing purchase price of new property after utilizing the sale proceeds of old
propert

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2nd finance up to 75% of the entitlement available for purchase of new property.
SUBSTITUTION OF SECURITY:
Employee can avail it without enhanced limit only once.
Those who availed 2nd finance facility cant avail it.
Minimum of 5 year period should be lapsed between date of sanction of finance and
request of security.
The alternative property should be in the employees name.
Value of n new property should be more than that of existing.
SWAPPING OF HOUSING FINANCE:

Swapping process shall be initiated if the borrowing is secured by way of mortgage.
House loan availed from other banks/institutions against property in the name of
employee or spouse only will be taken over.
The property in question must be urban.
No substitution of property shall be allowed in this case.
AMENDMENTS IN STAFF FINANCE POLICY
Finance will be allowed for carrying out transaction between employees and their
family members in case of inherited property.

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Re-validation of housing finance is three months (for future period).
RELEASE OF SECURITY DOCUMENTS/ISSUANCE OF

NOC:
Release of security documents and issuance of NOC for staff housing and transport finance
shall be issued by the branch manager/branch manager operations of the finance disbursing
branch and shall also be countersigned by the respective head RCAD.
WAIVERS FOR DOCUMENTS RELATING TO STAFF

HUSING FINANCE:
Conditions are given.
Certified copy of Mutation favoring the bank.
Approved building plan and/or completion certificate, where value of land fully
covers the amount of finance.
Comprehensive insurance, in case where land value covers the entire exposure of
mortgage finance. However, if otherwise it would be arranged only to cover the
building value/finance amount, whichever is lower.
3rd staff housing finance:
Mark up rate:

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6 months KIBOR + 200 bps p.a, to be determined on the last working day of the respective
quarter.
Terms and conditions:
Employees who have already availed 2nd housing finance and adjusted the same in
full (principals + markup)
The properties acquired through earlier housing finance are not retained by the
employees (documentary evidence to be submitted )
A period of 7 years should have lapsed between the request for their house finance
and the date of 1st installment of
2nd housing finance.
Transport finance
Entitlement:
Motor cycle Rs 90,000/- or CSR of 30% whichever is low.
Motor car 35 basic salaries or CSR of 30% whichever is low, up to max of
Rs2 million.
Rate of Markup:

INTERNSHIP REPORT
Cost of funds with a cap of 7% p.a.
Tenure of loan:
7 years and 6 months or remaining length of service whichever is less.
Eligibility:
6months service (after conformation) with BOP.
Terms and conditions:

Joint registration of vehicles in the name of the employee and the bank will be
mandatory.
Transport finance for car will not be available for if the model is more than 3 years
old and 5 year in case of un-registered/imported vehicle.
Transport finance of motor cycle will not be available if the model is more than 2
years old.
Purchase of commercial vehicles is not allowed.
Car finance will be available for officers and above.
An employee can apply for new transport finance after five years of the pervious
sanction. Till the adjustment of loan the employee shall arrange a comprehensive
insurance of the vehicles each year and assign it to bank.
Swapping:
The current market value of vehicle (to be swapped) forms any 3 approved/reputed car
dealers.

INTERNSHIP REPORT
General purpose finance:

Entitlement:
5 basic salaries or CSR of 30 % whichever is less, up to max do Rs
1 million.
Rate of Markup:
Cost of funds.
Tenure of loan:
3 years or remaining length of service.
Eligibility:
All employees of bank on completion of probation period.
Fresh loan can be availed after expiry of pervious loan or 6

months after adjustment of previous loan.
Swapping:
Swapping of loans like cash lines/ RF facilities /Demand finance or Credit cards etc
to the extent of entitlement of employee.
Disbursement shall only be allowed through Cross payment order / Demand draft.
Clearance / Adjustment letter should be submitted within 1 month of disbursement of

loan.
Pricing policies/procedures/strategies:

INTERNSHIP REPORT
Housing finance:
Rate of Markup:
Cost of funds with a capital of 6% p.a.
Amount up to Rs300, 000 is mark-up free for non-clerical staff.
3rd staff housing finance:
Mark up rate:
6 months KIBOR + 200 bps p.a, to be determined on the last working day of the
respective quarter.
Transport finance:
Entitlement:
Motor cycle Rs 90,000/- or CSR of 30% whichever is low.
Motor car 35 basic salaries or CSR of 30% whichever is low, up to max of
Rs2 million.
Rate of Markup:
Cost of funds with a cap of 7% p.a.

INTERNSHIP REPORT
General purpose finance:
Entitlement:
5 basic salaries or CSR of 30 % whichever is less, up to max do Rs 1 million.
Rate of Markup:
Cost of funds.
Promotional policies:
The Banks biannual magazine Pakistan Banker is expanding the circle of its a
acknowledgement. Owing to the diversity of topics and literal standards of material, the
magazine has won top awards of best publication in the country. The Banks
monthly in house Newsletter serves as a source to develop a close intra-institutional
association.
Benefiting from the banks growing balance sheet size, this division is now gaining
momentum and our long term aim is to develop it into an independent
strategic business unit (SBU). This would enable the bank to acq uire, develop and
retain specialized abilities, and enhance our focus on serving the emerging needs of the
corporate clients.
Competitive Strategy of BOP:

Value added services are provided.
Pull and push strategy is adopted
Performance is better.
Welcome customer with smile.
Innovations in banking.

INTERNSHIP REPORT
PART 6 :
BANK ACCOUNTING /
FINANCE SYSTEM:

INTERNSHIP REPORT
Ratio Analysis:
Ratio analysis is helpful to the management of the organization as well as for the investors
and creditors. An investor keeps an eye on the companys financial statement and makes
decisions whether to invest funds in that company or not. Similarly a creditor also analysis
the financial statements and makes decisions whether to grant loan or not.
Analysis
For the analysis, management and the investors make some ratio analysis, in which Liquidity
Ratios, Profitability Ratios, Market Ratios, Activity Ratios, Leverage ratios are familiar.
Ratios
In order to analysis the financial performance of the bank, investors and management use the
ratio analysis in which following ratios are calculated:
1. Liquidity Ratios
2. Leverage Ratios
3. Profitability Ratios
4. Activity Ratios

INTERNSHIP REPORT
5. Market Ratios
Liquidity Ratios:
Liquidity ratios means to measure short term solvency of the company. Ability of the
company to pay off its short term debt. Following ratios are calculated in order to measure
the short term solvency of the company
Current Ratio
Acid Test Ratio
Working Capital
Current Ratio:
Current Assets = Cash and Balance with Treasury Banks + Balance with other Banks
+Lending to Financial Institution + Short Investment + Short Advances + Other
Assets
Current Liabilities = Bill Payables + Short Borrowing + Short Deposit + Other Liabilities
Current Ratio = Current Assets / Current liabilities
Year 2010
=Rs. 122,347,224 Rs. 94,274,512
= 1.3 : 1
Year 2011
=Rs. 173,120,729 Rs. 140,202,371

INTERNSHIP REPORT
= 1.23 : 1
Year 2011
=Rs. 128,967,953 Rs. 107,914,057
= 1.19 : 1
Workings:
For 2010
Current Assets
= 14,054,859 + 3,722,089 + 11,846,823 + 20,501,978 +68,612,018 + 3,609,457
= Rs.122, 347, 224
Current Liabilities
= 856, 448 + 6, 989, 424 + 83, 612, 299 + 2,816, 341
= Rs. 94,274,512
For 2011
Current Assets
= 14,210,302 +1,927,662 + 2,450,000 + 65,857,861 + 82,885,788+ 5,789,116
= Rs.173, 120,729
Current Liabilities
= 937,647 + 15,857,522 + 120,423,225 + 2,983,977

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= Rs. 140,202,371
For 2012
Current Assets
= 10,685,057 + 2,178,455 + 633,333 + 20,038,517 + 89,323,454 + 6,109,137
=Rs. 128,967,953
Current Liabilities
= 1,219,801 + 10,601,169 + 91,528,830 + 4,564,257
= Rs. 107,914,057
Graphical Representation:
Explanation:
The standard of this ratio is 2:1, means current assets are twice the current liabilities. But
Bank of Punjab has a lower current ratio to the standard rate. In 2006 it was 1.3, in 2007, 1.23
and in 2008 it will be 1.19 which is more than the 2007 but lesser the 2006.
Acid Test Ratio:

INTERNSHIP REPORT
Current Assets
= Cash and Balance with Treasury Banks + Balance with other Banks +Lending to Financial
Institution + Short Investment + Short Advances + Other Assets
Current Liabilities
= Bill Payables + Short Borrowing + Short Deposit + Other Liabilities
Prepaid expenses
= Advances, deposits, advance rent and other prepayments
Acid Test Ratio = Current Assets (Inventories + prepayments) / Current liabilities
Year 2010
= Rs.122, 347, 224 - Rs.102, 571 / Rs. 94,274,512
= 1.29
Year 2011
= Rs.173, 120,729- Rs. 159,438/ Rs. 140,202,371
= 1.23
Year 2012
=Rs. 128,967,953-Rs.161,553/ Rs. 107,914,057
= 1.19
Workings:
For 2010
Current Assets
= 14,054,859 + 3,722,089 + 11,846,823 + 20,501,978 +68,612,018 + 3,609,457
= Rs.122, 347, 224
Current Liabilities
= 856, 448 + 6, 989, 424 + 83, 612, 299 + 2,816, 341

INTERNSHIP REPORT
= Rs. 94,274,512
Prepaid Expenses
= Rs.102, 571
For 2011
Current Assets
= 14,210,302 +1,927,662 + 2,450,000 + 65,857,861 + 82,885,788+ 5,789,116
= Rs.173, 120,729
Current Liabilities
= 937,647 + 15,857,522 + 120,423,225 + 2,983,977
= Rs. 140,202,371
Prepaid Expenses
= Rs.159, 438
For 2012
Current Assets
= 10,685,057 + 2,178,455 + 633,333 + 20,038,517 + 89,323,454 +6,109,137
=Rs. 128,967,953
Current Liabilities
= 1,219,801 + 10,601,169 + 91,528,830 + 4,564,257
= Rs. 107,914,057

INTERNSHIP REPORT
Prepaid Expenses
= Rs.161, 553
Explanation:
As the Acid test ratio from year 2006 to 2008 is: Rs.1.29, Rs. 1.23 andRs 1.19
Respectively. In all three years acid test ratio is slight more than is standard ratio.
It must be 1:1 in order to proof the short term solvency of the bank to pay off
Is short term bank.

INTERNSHIP REPORT
Working capital
Working Capital = Current Assets Current Liabilities
Year 2010
=Rs.122,347,224-Rs. 94,274,512
= Rs.28,072,712
Year 2011
=Rs.173,120,729- Rs. 140,202,371
= Rs.32,918,358
Year 2012
=Rs. 128,967,953 Rs.107,914,057
= Rs.21,053,896
Workings:
For 2010

INTERNSHIP REPORT
Current Assets = Rs.122, 347, 224
Current Liabilities = Rs. 94,274,512
For 2011
Current Assets = Rs.173, 120,729
For 2012
Current Assets = Rs. 128,967,953
Ex
planation:
The working capital is rapidly increasing from 2006 to 2007. Because the current assets of
BOP are rapidly, increase. In 2008 it declined but not in a rapid as it grows 2006 to 2007.
Leverage Ratios:

INTERNSHIP REPORT
These ratios show the capital structure of the firm. Through these ratios we find that how the
firm finance their activities. It is more important for the lender to assess that the firm can
repay the loan amount or not. Increasing debt increases the likelihood of bankruptcy of the
firm. Following ratios falls under this category.
Time Interest Earned
Debt Ratio
Debt to Equity Ratio
Debt to Tangible Net Worth
Total Capitalization Ratio
Time Interest Earned Ratio:

Time Interest Earned = Profit before tax + Interest Expense (EBIT) / Interest Expense
Year 2010
=Rs.4,768,721/Rs.7,573,722
= 0.63
Year 2011
=Rs.4,855,569/Rs.13,939,377
= 0.35
Year 2012
=(Rs.16,832,906)/Rs.16,614,000
= -1.01
Working
Given in the Profit and Loss Account

INTERNSHIP REPORT
For 2010
Profit before tax Interest Expense = Rs.4, 768,721
Interest Expense = Rs.7, 573,722
For 2011
Profit before tax Interest Expense = Rs. 4,855,569
Interest Expense = Rs. 13,939,377
For 2012
Profit before tax Interest Expense = Rs. -16,832,906
Interest Expense = Rs. 16,614,000
Explanation:
The Time Interest Earned Ratio of BOP is not better. The ratio is consistently is
declining even in 2008 it went negative. This graph is showing that the bank EBIT is
not enough to cover its interest expenses.

INTERNSHIP REPORT
Debt Ratio:
Total Debt
= Bills Payable + Borrowings from financial institutions + Deposits & other accounts +
Subordinate Loans + Liabilities against assets subject to finance lease + deferred tax
liabilities+ Other liabilities
Total Assets
= Given in the Balance Sheet
Debt Ratio = (Total Debt / Total Assets) * 100
Year 2010
=Rs.148,729,423/Rs.164,855,137
= 90.21%
Year 2011
=Rs.215,978,767/Rs.234,990,675
= 91.90%
Year 2012
=Rs.182,165,419/Rs.185,909,120
= 97.99%
Working
For 2010

INTERNSHIP REPORT
Total Debt
= 856,448 + 6,989,424 + 137,727,606 + 0 + 40,988+298,616+2,816,341
= Rs.148, 729,423
Total Debt
= 937,647 + 17,842,915 + 191,968,377 + 0 +40,321+2,205,530+2,983,977
= Rs.215, 978,767
For 2012
Total Debt
= 1,219,801, + 12,278,773 + 164,072,532 + 0 + 30,632+ 0 +4,564,481
= Rs. 182,165,419
Explanation:

INTERNSHIP REPORT
Debt ratio is measure of debt with the total assets. The graph shows that the debt ratio is
consistently increasing that indicates the dependence on debt is increasing and in 2008 it is at
the higher level. From 2007 to 2008 it rapidly increased. In 2008 the total Debt was the
almost 97% of Total Assets.
Debt / Equity Ratio

Total Debt
= Bills Payable + Borrowings from financial institutions + Deposits & other accounts +
Subordinate Loans + Liabilities against assets subject to finance lease + deferred tax
liabilities+ Other liabilities
Total Equity
= Share Capital + Reserves + Un-appropriated Profit
Debt to Equity Ratio = Total Debt / Total Equity
Year 2010
=Rs.148,729,423/Rs.10,658,968
= 13.95
Year 2011
=Rs.215,978,767/Rs.15,126,567
= 14.27
Year 2012
=Rs.182,165,419/Rs.5,040,949
= 36.13
Working

INTERNSHIP REPORT
For 2010
Total Debt
= 856,448 + 6,989,424 + 137,727,606 + 0 + 40,988+298,616+2,816,341
= Rs.148, 729,423
Total Equity
= 2,902,490 + 4,537,232 + 3,219,246
= Rs.10, 658,968
For 2011
Total Debt
= 937,647 + 17,842,915 + 191,968,377 + 0 +40,321+2,205,530+2,983,977
= Rs.215, 978,767
Total Equity
= 4,230,379 + 7,427,232 + 3,468,956
= Rs.15, 126,567
For 2012
Total Debt
= 1,219,801, + 12,278,773 + 164,072,532 + 0 + 30,632+ 0 +4,564,481
= Rs.182, 165,419
Total Equity
= 5,287,974 + 7,427,232 + ( 7,658,686 (Loss))
= Rs.5, 040,949

INTERNSHIP REPORT
Explanation:
As we already observed that the debt is increasing, in this graph we compare it with the
equity. We find the consistent increase in the debt to equity ratio. In 2008 it was at the higher
level. The debt exceeded the equity.
Debt to Tangible Net Worth:

Tangible Net Worth = Total Assets Liabilities Intangible Asset

INTERNSHIP REPORT
Debt to Tangible Net Worth = Total Debt / Tangible Net Worth
Year 2010
=Rs.145,614,466/Rs.16,095,248
= 9.05
Year 2011
=Rs.210,789,260/Rs.18,993,725
= 11.10
Year 2012
=Rs.177,601,738/Rs.3,735,613
= 47.54
Working
For 2010
Tangible Net Worth
= 164,855,137 148,729,423 30,466
= Rs.16, 095,248
For 2011
Tangible Net Worth
= 234,990,675 215,978,767 18,183
= Rs.18, 993,725

INTERNSHIP REPORT
For 2012
Tangible Net Worth
= 185,909,120 182,165,995 7,512
= Rs.3, 735,613
Graphical Represented
Explanation:
As the graph is showing that the debt to tangible net worth ratio is increasing. From 2006 to
2007 it slightly increased but from 2007 to 2008 it rapidly increased due to the increase in
debt. So the BOP has not Net Tangible Net Worth to cover the Debt.

INTERNSHIP REPORT
Total capitalization Ratio

Long Term Debt
Total Capitalization Ratio =
Long Term Debt + Shareholder's Equity
Year 2010
=Rs.36,296,156/ Rs.46,955,124
= 0.7729 Times
Year 2011
=Rs.55,571,712/Rs. 70,698,279
= 0.7860 Times
Year 2012
=Rs. 46,755,209/ Rs.51,796,158
= 0.9026 Times
Long Term Debt = Deposit and other account + Liabilities against assets subject to
finance lease + Deferred tax liabilities + other liabilities
Working
For 2010
Long Term Debt
= 35,880,568+ 23168+298,616+ 93,804
= Rs.36, 296,156
= 36,296,156/ (36,296,156+10,658,968)
= 36,296,156/ 46,955,124

INTERNSHIP REPORT
For 2011
Long Term Debt
= 53,219,973+30615+ 2,205,530+115,594
= Rs.55, 571,712
=55,571,712/ (55,571,712 + 15,126,567)
=55,571,712/ 70,698,279
For 2011
Long Term Debt
=46,555,790+19859+0+ 179,560
= Rs.46, 755,209
= 46,755,209/ (46,755,209+ 5,040,949)
= 46,755,209/51,796,158

INTERNSHIP REPORT
Explanation:
The total capitalization ratio compares the total debt with the sum of debt and equity. The low
capitalization ratio indicates the financial fitness of the firm. According to the graph, I can
see that the ratio in 2008 is higher. In 2007, it was at the lowest level in selected years.
Profitability ratios measure the earning ability of the firm. Following ratios are calculated:
Net Profit Margin
Return on Assets
DuPont Return on Assets
Operating Income Margin
Return on operating Assets
Return on Total Equity
Gross Profit Margin
Net Profit Margin

Net Profit
= Profit after Taxation
Total Revenue
= Markup/ return/interest earned

INTERNSHIP REPORT
Net Profit Margin = Net Profit / Total Revenue
Year 2010
= Rs.3,804,255 / Rs.11,643,963
= 32.67%
Year 2011
= Rs.4,454,018 / Rs. 17,539,538
= 25.39%
Year 2012
= (Rs.10,084,940) / Rs.17,752,652
= -56.81%
Working
For 2010
Net Profit = Rs.3, 804,255
Total Revenue = Rs.11, 643,963
For 2011
Net Profit = Rs.4, 454,018

INTERNSHIP REPORT
For 2012
Net Profit = Rs.-10,084,940
Explanation:
The net profit margin is declining from 2006 to 2008, as shown in graph. In 2006 the net
profit margin is 32.67% which is higher in selected three years. After this it start to decline
and in 2008 The Bank of Punjab has to bear a loss.
Return on Assets
Net Profit =
Profit after Taxation
Total Assets =
Given in the Balance Sheet

INTERNSHIP REPORT
ROA = Net Income / Total Assets
Year 2010
= Rs.3,804,255 / Rs.164,855,137
= 2.31%
Year 2011
= Rs.4,454,018 / Rs.234,990,675
= 1.895%
Year 2012
= (Rs.10,084,940)/ Rs.185,892,973
= -5.425%
For 2010
Net Profit = 3,804,255
Total Assets = 164,855,137
For 2011

INTERNSHIP REPORT
For 2012
Net Profit = 10,084,940
3.00%
2.00%
1.00%
0.00%
-1.00%
Return on
-2.00% Assets
-3.00%
-4.00%
-5.00%
-6.00%
2006 2007 2008
Explanation:
It is simple Return on Assets, which calculate through net income, and total assets but the
result is same as in Du-Pont ROA. It is showing the consistent decline in the return on Assets.
DuPont Return on Assets Ratio

Net Profit
= Profit after Taxation
Total Revenue
= Markup/ return/interest earned
Total Assets
= Given in the Balance Sheet

INTERNSHIP REPORT
Du-Pont ROA = (Net Income / Total Revenue) x (Total Revenue / Total Assets)
Year 2010
= (3,804,255/11,643,963) x (11,643,963/164,855,137)
= 2.31%
Year 2011
= (4,454,018/17,539,538) x (17,539,538/234,990,675)
= 1.894%
Year 2012
= (-10,084,940/17,752,652) x (17,752,652/185,892,973)
= -5.425%
For 2010
Total Revenue = 11,643,963
For 2011
For 2012
Net Profit = -10,084,940

INTERNSHIP REPORT
Explanation:
DuPont ROA Analysis is the approach to calculate the Return on Assets by taking Net
Income, Total Revenue and Total Assets. It shows the effect of revenue on the net income
and the total assets. When we calculate the DuPont ROA of BOP, we find consistently the
decline in the return on assets. Net Profit Margin is Declining on the other hand the total
Asset were not generating enough revenue. Therefore, the Return on Assets decline in 2008
and it goes to negative.

INTERNSHIP REPORT
Operating Income Margin

Operating Income Margin = Earnings Before tax + interest expenses / Total Revenue
Year 2010
=Rs.4,768,721/Rs.11,643,963
= 40.95%
Year 2011
=Rs.4,855,569/Rs.17,539,538
= 27.68%
Year 2012
=( Rs.2,443,41)/Rs.17,752,652
= -1.376%
For 2010
Earnings Before tax = 4,768,721
For 2011
Earnings Before tax = 4,855,569
For 2012
Earnings Before tax = -16,858,341

INTERNSHIP REPORT
Explanation:
Graph show a decline in the revenues. In 2006 BOP generate enough revenue but in 2008 the
provision of nonperforming loans decline the profit even it went in negative which is -
94.96%.
Return on Operating Assets

Operating Assets
= Cash and Balance with Treasury Banks + Balance with other Banks +Lending to Financial
Institution + Advances + Operating fixed Assets

INTERNSHIP REPORT
Return on Operating Assets = EBIT / Operating Assets
Year 2010
= Rs. 4,768,721/ Rs.133,012,469
= 3.58%
Year 2011
= Rs.4,855,569/Rs.155,739,866
= 3.12%
Year 2012
= Rs. -16,858,341/Rs.148,692,796
= -11.33%
For 2010
Earnings Before tax = Rs. 4,768,721
Operating Assets = 14,054,859 + 3,722,089

+11,846,823+101,319,954+2,068,744
= Rs.133, 012,469
For 2011
Earnings Before tax = Rs. 4,855,569
Operating Assets = 14,210,302 + 1,927,662 + 2,450,000 + 133,899,143 +

3,252,759
= Rs.155, 739,866

INTERNSHIP REPORT
For 2012
Earnings Before tax = Rs. -16,858,341
Operating Assets = 10,685,057 + 2,178,455 +

633,333+131,724,113+3,471,838
= Rs.148, 692,796
Explanation:
As the Return on Operating Assets from year 2006 to 2008 is: 3.58%, 3.12% and
-11.33% respectively. As for as index analysis concern return on operating assets has been an
decreasing from 2006 to 2008.it is much below standard in banking industry.
Return in Total Equity :

Average Stockholder Equity
= Share Capital + Reserves + Un-appropriated Profit

INTERNSHIP REPORT
ROE = (Net Income / Average Stockholder Equity) * 100
Year 2010
=Rs.3,804,255/Rs.10,658,968
= 35.69%
Year 2011
=Rs.4,454,018/Rs.15,126,567
= 29.45%
Year 2012
=(Rs.10,084,940)/Rs.5,040,949
= -200.06%
Working
For 2010
Average Stockholder Equity = 2,902,490+4,537,232+3,219,246
= 10,658,968
For 2011
Average Stockholder Equity = 4,230,379+ 7,427,232+ 3,452,842
= 15,110,453
For 2012
Net Profit = -10,084,940

INTERNSHIP REPORT
Average Stockholder Equity = 5,287,974+7,427,232+(-7,674,257)
= 5,040,949
Explanation:
Return on Owners Equity in the year 2006 is 35.69%, in the year 2007 is 29.35% and in the
year 2008 is -200.6% which shows an decreasing trend to a lesser extent from year on year
basis as well as it is not meet the standard of banking industry.

INTERNSHIP REPORT
Gross Profit Margin
Gross Profit Margin = (Gross Profit / Total Revenue) * 100
Year 2010
=Rs.4,070,241/Rs.11,643,963
= 34.96%
Year 2011
=Rs.3,600,161/Rs.17,539,538
= 20.53%
Year 2012
=Rs.1,138,652/Rs.17,752,652
= 6.41%
Working
Give in the Profit and Loss Account.
For 2010
Gross Profit = Net markup/interest income = Rs.4, 070,241
Total Revenue = Markup/ return/interest earned = Rs.11, 643,963
For 2011
Gross Profit = Net markup/interest income = Rs.3, 600,161
Total Revenue = Markup/ return/interest earned = Rs.17, 539,538

INTERNSHIP REPORT
For 2012
Gross Profit = Net markup/interest income = Rs. Rs.1, 138,652
Total Revenue = Markup/ return/interest earned = Rs. 17,752,652
Explanation:
This ratio also shows the decline in revenue of BOP. In 2006 it nearly 35% but after 2006 it
start to decline and in 2008 it merely 6.41%. Because the revenue of the BOP declines so the
Gross Profit automatically decline.
Activity Ratios
Activity ratios measure a firms ability to convert different accounts within their balance
sheets into cash or sales.
Total Assets Turnover
Fixed Assets Turnover

INTERNSHIP REPORT
Total Assets Turnover

Total Assets Turnover Ratio = Interest or Markup / Total Assets
Year 2010
=Rs.11,643,963/Rs.164,855,137
= 0.071 times
Year 2011
=Rs.17,539,538/Rs.234,990,675
= 0.075 times
Year 2012
=Rs.17,752,652/Rs.185,892,973
= 0.095 times
Working
Give in the Profit and Loss Account and Balance Sheet.
For 2010
Markup/ return/interest earned = Rs.11, 643,963
Total Assets = Rs.164, 855,137
For 2011:
Total Assets = Rs. 234,990,675

INTERNSHIP REPORT
For 2012:
Total Assets = Rs. 185,892,973
Explanation:
Total Asset turnover ratio measures the firms effectiveness in generating the revenue from
its investments in total assets. The graph is showing the increase in the total assets turnover
ratio. But its not real growth because when we analyze the Financial Statements of BOP we
find that in 2007 the income and assets increased so the ratio also increased but in 2008
income decreased whereas the assets decrease with more ratio. So this factor caused the
increase in the total assets turnover in 2008.

INTERNSHIP REPORT
Fixed Assets Turnover

Fixed Assets Turnover Ratio = Interest or Markup / Fixed Assets
Year 2010
=Rs.11,643,963/Rs.2,068,744
= 5.63 times
Year 2011
=Rs.17,539,538/Rs.3,252,759
= 5.39 times
Year 2012
=Rs.17,752,652/Rs.3,471,838
= 5.11 times
Working
Give in the Profit and Loss Account and Balance Sheet.
For 2010
Interest or Markup = Rs.11, 643,963
Fixes Assets
Operating Fixes Assets = Rs.2, 068,744

INTERNSHIP REPORT
For 2011
Interest or Markup = Rs.17, 539,538
Fixes Assets
For 2012
Interest or Markup = Rs. 17, 752,652
Fixes Assets
Explanation:
The fixed asset turnover ratio measures the company's effectiveness in generating sales from
its investment in fixed assets. The graph shows the decline in fixed assets turnover. It means
that the generation of revenue on the fixed assets is declining. The Bank of Punjab is not
using its fixed assets effectively.

INTERNSHIP REPORT
Market Ratios
Market ratios are commonly used by the investors to access the performance of a business as
an investment and also the cost of issuing stock.
Dividend per share
Earnings per Share
Price / Earnings Ratio
Dividend per share

Dividend per share =
Dividend paid to Shareholders / Number of shares outstanding
Note: Bank of Punjab has not paid dividend so this ratio is not calculated
Earnings Per Share


INTERNSHIP REPORT
Explanation:
The earnings per share was 13.14 in 2006, which decrease in 2007, and was 10.53. But in
2008 due to loss the dividend per share went in negative its mean that in 2008 shareholders
have to bear a loss.
Price / Earnings Ratio
Price to Earnings Ratio = Market Price per Share / Earning per Share
Year 2010
= 101 / 13.14
= Rs.7.69
Year 2011
= 97.85 / 10.53
= Rs.9.29
Year 2012
= 13.20 / -19.07
= Rs.( -6.50)

INTERNSHIP REPORT
Graphic Representation:
Explanation:
The P/E ratio was 7.69 in 2006. In 2007, it increased due to the decline in market price so the
shares of BOP look more attractive in 2007 because the P/E ratio is higher but in 2008 as we
already have seen in DPS and EPS calculation the P/E ratio went in negative. In 2008, BOP
has to bear a loss so the DPS and EPS declined so the P/E ratio was also decreased.

INTERNSHIP REPORT
The Bank of Punjab

Balance Sheet
As on 31st December
2012 2011 2010
Rs. (000) Rs. (000) Rs. (000)
ASSETS:
Cash and Balances with treasury Banks 17,298,251 16,698,333 10,685,058
Balances with other Banks 3,101,170 3,607,107 2,178,455
Lending's to financial institutions 1,56,2,946 7,447,375 633,333
Investments 129,552,044 92,492,813 22,689,608
Advances 149,565,885 127,107,501 131,724,113
Other assets 3,473,491 3,597,483 6,122,406
Operating fixed assets 13,070,614 13,886,769 3,471,838
Deferred Tax assets 14,486,073 16,052,311 8,388,162
Total Assets 332,110,474 280,889,692 185,892,973
LIABILITIES
Bills payable 1,500,709 850,569 1,219,801
Borrowings from financial institutions 44,683,826 24,963,566 12,278,773
Deposits and Other accounts 266,055,761 237,896,692 164,071,732
Subordinated Loans ------ -------- -----
Liabilities against assets subject to finance 3,601 7,831 30,632

lease

INTERNSHIP REPORT
Other liabilities 7,495,928 6,510,013 4,564,481
Deferred Tax liabilities ------------ --------------- -------
Total Liabilities 319,739,825 270,228,671 182,165,419
Net Assets 12,370,649 10,661,021 3,727,554
Represented By: ----------- ------------- ------------
Share Capital 5,287,974 5,287,974 5,287,974
Reserves 1,187,433 1,914,956 7,427,232
Un-appropriate Profit (12,743,218) (14,179,410) (7,674,257)
Total Equity 5,040,949

(6,267,811) (6,976,480)
Share deposit money 17,000,000 17,000,000
Surplus on Revaluation of Assets (1,313,395 )

10,732,189 10,023,520
1,638,460 24 637,501
12,370,649 10,661,021

INTERNSHIP REPORT
The Bank of Punjab

Profit and Loss Account
As on 31st December.
2012 2011 2010
Rs. (000) Rs. (000) Rs. (000)
Markup/ return/interest earned 24,662,361 20,682,061 17,752,652
Markup/return/ interest expensed 22,522,918 21,073,271 16,614,000
Net markup/interest income 2,139,443 (391,210) 1,138,652
Provision against non-performing loans and (965,430) (3,164,234) 18,863,580

advances-net
Provision for diminution in the value of 215,502 576,597 388,757

investments
Bad debts written off directly -------- --------- ----
(749,928) (2,587,637) 19,252,337
Net markup/interest income after provisions 2,889,371 2,196,427 (18,113,685)
NON MARK-UP/INTEREST INCOME
Fee, commission and brokerage income 762,490 724,499 579,520
Dividend income 220,985 286,375 2,025,160
Income from dealing in foreign currencies 162,980 160,089 324,327
Gain on Sale of Securities 1,449,814 330,025 733,787
Unrealized Gain / Loss on Revaluation of ---- --------

Investments classified as held for trading
8,620
Other income 585,856 (5,383) 526,186
Total non mark-up/interest income 3,190,745 494,103 4,188,980

INTERNSHIP REPORT
6,080,116 4,186,135 (13,924,705)
NON MARK-UP/ INTEREST EXPENSES
Administrative expenses 3,959,217 2,808,835
4,437,680
Provision against lending to financial 168,419 1,121 10,101
Institution
Provision against off Balance Sheet Items -------- (244,111) ----
Provision against receivable from NIT -------- ---- ---
Other charges (40,590) 205 114,700
Total non- markup/ interest expenses 4,565,509 3,716,432 (2,933,636)
1,514,607 469,703 (16,858,341)
Extraordinary /unusual items 1,514,607 469,703 (16,858,341)
PROFIT BEFORE TAXATION
Taxation
For the year Current 139,284 -------- 207,600
-Deferred 353,738 174,774
For prior year Current (722,971) 5 1,052,000
8,033,001
(229,949) 174,779 6,773,401
PROFIT AFTER TAXATION 1,744,556 294,924 (10,084,940)
Un-appropriate profit b/f (14,179,410) (14,411,509) 3,468,956
Reversal of Excess management fee accrued (326,769) (69,595) 6,250

last year
(14,487,774) (14,474,334) 3,468,278
Profit available for appropriation (12,743,218) (14,179,410) (6,616,662)

INTERNSHIP REPORT
Key financial ratios of

The bank of Punjab
(Vertically)
Mar 2013 Mar 2012 Mar 2011 Mar 2010

Investment Valuation Ratios
Face Value 10.00 10.00 10.00 10.00
Dividend Per Share 27.00 22.00 22.00 22.00
Operating Profit Per Share (Rs) 198.32 223.61 205.58 191.63
Net Operating Profit Per Share (Rs) 1,185.19 1,170.81 940.76 777.82
Free Reserves Per Share (Rs) -- 130.21 69.25 63.79
Bonus in Equity Capital
-- -- -- --
Interest Spread -- 4.51 4.67 4.46

Adjusted Cash Margin(%) 10.98 12.80 15.39 16.52
Net Profit Margin 10.29 12.09 14.56 15.64
Return on Long Term Fund(%) 97.26 113.95 108.49 116.11
Return on Net Worth(%) 14.52 18.52 22.12 24.06
Adjusted Return on Net Worth(%) 14.52 18.50 22.11 24.04
Return on Assets Excluding Revaluations 924.45 777.39 632.48 514.77
Return on Assets Including Revaluations
924.45 820.13 678.91 562.09
Management Efficiency Ratios
Interest Income / Total Funds 8.96 9.53 8.87 9.07

Net Interest Income / Total Funds 3.18 4.01 4.35 4.28
Non Interest Income / Total Funds 0.90 0.16 0.19 0.16
Interest Expended / Total Funds 5.78 5.52 4.52 4.79
Operating Expense / Total Funds 1.68 2.19 2.41 2.05
Profit Before Provisions / Total Funds 2.33 1.91 2.05 2.31
Net Profit / Total Funds 1.01 1.17 1.32 1.45
Loans Turnover 0.29 0.15 0.14 0.14
Total Income / Capital Employed(%) 9.86 9.69 9.06 9.24
Interest Expended / Capital Employed(%) 5.78 5.52 4.52 4.79
Total Assets Turnover Ratios 0.09 0.10 0.09 0.09
Asset Turnover Ratio 0.09 0.10 0.09 0.10

INTERNSHIP REPORT
Profit And Loss Account Ratios
Interest Expended / Interest Earned 64.54 63.18 56.25 60.30

Other Income / Total Income 9.14 1.68 2.12 1.75
Operating Expense / Total Income 17.02 22.56 26.64 22.19
Selling Distribution Cost Composition -- 0.09 0.13 0.16
Balance Sheet Ratios
Capital Adequacy Ratio 12.72 12.63 12.42 14.16

Advances / Loans Funds(%)
-- 77.17 78.98 77.31
Debt Coverage Ratios
Credit Deposit Ratio 38.10 77.39 76.25 74.34

Investment Deposit Ratio 32.75 31.45 30.75 30.74
Cash Deposit Ratio 4.72 6.10 7.49 7.71
Total Debt to Owners Fund 11.98 14.40 15.62 15.36
Financial Charges Coverage Ratio 0.42 0.36 0.47 0.50
Financial Charges Coverage Ratio Post
Tax 1.19 1.22 1.31 1.32
Leverage Ratios
Current Ratio 0.78 0.02 0.03 0.02

Quick Ratio
22.40 23.81 22.24 20.47
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit 23.51 17.75 18.27 20.74

Dividend Payout Ratio Cash Profit 22.03 16.75 17.27 19.62
Earning Retention Ratio 76.49 82.23 81.72 79.25
Cash Earning Retention Ratio 77.97 83.24 82.72 80.37
AdjustedCash Flow Times 77.29 73.39 66.77 60.43
Earnings Per Share 134.31 144.00 139.94 123.86

Book Value 924.45 777.39 632.48 514.77

INTERNSHIP REPORT
PART # 7
TRAINING PROGRAM.

INTERNSHIP REPORT
PERSONAL EXPERIENCE & INTERNSHIP

ACTIVITIES
The bank of Punjab given me the opportunity for internship at regional office Lahore and
give me a chance to explore how the HR practices done in the bank. As internship is a source
of practical training and it made me efficient in competitive business environment. I have
tried my best to use my previous knowledge about HR and I realized that previous knowledge
really prove fruitful.
The credit obviously goes to our faculty members and banks staff who guided me towards
banking system. eight weeks internship in this summer vacations was never favorite news for
all of us. We always consider it an extra burden and hassle in the way of our degree program.
But now when I have completed internship I would greatly appreciate my teachers and course
coordinators who have given this opportunity of learning experience before formally entered
into practical field. This internship has not only made me familiar with working environment
of banking sector but also has boost up my confidence level to enter in any practical field.
WEEK 1:
Audit & maintained leave record:
In the 1st week I maintained leave data of employees of regional office and kept it in file and
register and then update the data on system as well. In this specific task I have maintained
data from Jan 15th to July 31st 2013. I also audit the previous leave record of almost 60
employees and then put it on new register. And finally I prepaid statements of leave record on
their system.
WEEK 2
Maintained employee record & update:

INTERNSHIP REPORT
from this task I came to know how many employees is in the bank, whats their ranking and
how many employees are in each branch. I also understand the hierarchy by seeing the
organogram of each branch working under Lahore region. In each branch there is a seat for
manager, manager operation, operational staff, and credit and cash staff.
WEEK 3
Maintain employees personal file:
In my internship period I also given with the task to maintain employees personal file in
which all the written official documents are kept from his joining till his resignation or
retirement.
Maintain record of transfer cases:

I also maintained and record the transfer cases of employees in regional office. In this task I
came to know how many people is transfer either in or out the regional office since Jan 2013.
Initial information came from daily attendance register and then I prepare excel sheet and
finally update it on the main database of transfer records of BOP.
WEEK 4
Update training order:
I have also given with the opportunity to update the training orders on their system. There
are two types of training order 1st one is staff order in which there is a list of employees
who are nominated for specific training program. Usually each staff order contain 40 to 50
employees name. 2nd statement is given by OTI named as relieving order. OTI send this to
HR department when training is complete, so that HR department confirms that all employees
who are in staff order list had attended the training session. I update almost 50 statements on
their system.
WEEK 5
Short listing of CVs:
during my internship period BOP is engaged in hiring experienced staff for their new branch
and for this purpose CVs of job candidates are sent to its HR department. I my self short list
the CVs of candidate on the basis of their relative experience, qualification and expected
salary.

INTERNSHIP REPORT
Observe whole selection process:

I m so fortunate that during my presence there are 3 interview sessions held at regional
office Lahore. These interviews are for cash, operation and branch managers post. I keenly
observed the whole selection process and I learned a lot from interview process. I found my
self lucky to have an experience to observe an important function of Human resource i.e.
recruitment & selection.
WEEK 6
Maintained internship documents:
I personally arranged and kept all the internship cases in their official internship files, from
till the last date of my internship period.
Record the sanction approval order:

I also maintained and update the records of sanction approval of loan taken by employees of
regional office, on their system.
WEEK 7
I get the data of circular from the circular file and than make its points and write each and
every thing which was in circular file.
The main points of circular is:
Cleanliness and Maintenance
Attendance
Authorized Signatures
Transfer posting
Hiring

INTERNSHIP REPORT
Revision of grade hierarchy
Perk Allowance for Branch Manager and Manager Operation
Renewal of Health Insurance Policy
Age Limit:
Medical Allowance
WEEK 8:
In the last week i do the reminaning portion of the circular which contains these points:
Procedure for availing credit facility for treatment of hepatitis at EFOs panel
hospitals in major cities:
Pre & post Hospitalization Essences Benefits
Pre & post Natal Expense Benefits
Coverage of specialized investigation/test
Congenital (by birth) Ailments Coverage
Emergence Accidental Outpatient Cover

INTERNSHIP REPORT
LEAVE POLICY FOR THE THIRD PARTY.

In this work I learn the type of the leaves which are:
Privilege
Casual
Sick
PRIVELEGE LEAVE:
Employees are eligible for 15 days PL leaves after completion of 1 year of services.
This leave can neither be accumulated nor en-cashed.
CASUAL LEAVE:
Ten leaves during one year.
It can be ranging from one day to two days.
This leave can neither be accumulated nor en-cashed
SICK LEAVE:
Ten days within a calendar year.
If leaves are more than two days, he should provide medical certificate.

INTERNSHIP REPORT
Sick leave in excess of entitlement will be treated as leave without pay.
This leave can neither be accumulated nor en-cashed.
UNAUTHORIZED ABSENTS:
In case of unauthorized absents salary deduction or disciplinary action can be
taken.
In case of unauthorized or not granted absents of ten working days, peoples

management can dismiss without pay.
MODE OF APPLYING FOR LEAVES:

Application should be made on prescribed leave application with complete details.
Inform 3-4 days in advance.
Unapproved leaves from people management will be considered as leave without pay
and will be liable to disciplinary actions.

INTERNSHIP REPORT
SWOT ANALYSIS
An analysis indicating towards Organizations Strengths, Weaknesses, Opportunities and
Threats is termed as SWOT ANALYSIS.Sucn an Analysis is very important for the
Management in retaining their Strenght, overcoming their Weaknesses, capitalizing over the
Emerging Market Opportunities and carving ways to successfully tackle with the threats and
ultimately converting them in the strengths of the Organization.During my 8 weeks Practical
Training at MCB, I have come across the following Swot Analysis of the Bank.
Strengths:
Comprehensive Range of Money Transfer Operations

Through BOP, one has at ones Disposal a comprehensive range of Money Transfer including
Cashiers Order, Drafts and Telegraphic transfers. The bank ensures its Customers that
whether its Foreign or local currency transfer, the money will reach the destination safely
and quickly.
Automatic Operations
Operations performed by the Bank are highly automated that result in assurance for the
customers that their transactions are completely reliable, efficient and secure.
Banking Hours
One can avail the services provided at the bank during the Banking hours which is useful for
all types of Customers to visit the bank at their own Disposal.
ATM Network
The Bank has the largest ATM Network across the Country. The Customers of BOP can
access their funds at any time at more than 150 sites
Customized Solutions
The Management of the Bank believes in the Customer Focused Banking rather than the
Product Oriented banking. The Product and the Services Organized by the Bank are
specifically tailored to the individual need of its Customers.

INTERNSHIP REPORT
Priority Banking
The Priority Banking canters of the Bank offer an unmatched where the Customer receives
highly privileged facilities in a highly elegant environment. it gives the chance of
experiencing new standards in banking. Priority banking offers the very highest Levels of
personalized banking.
Electronic Banking
The revolution in the Banking in the form of Electronic Banking operations have opened new
avenues of excellent, efficient and quick services saving the time and costs of the customers
and fortunately BOP is among those few banks who are already reaping the benefits of
Electronic banking.
Attractive Facility Layouts
The layout of the service sector is very important for achieving the client customer goal of
fast service. the fast service is provided by the automatic operations, scanners etc.which are
widely used by BOP the use of ATM for banking Operations has assured reduced costs and
conveniences for the customers as well as for the management.
WEAKNESSES
In my opinion, the following points may be determinable to increase the profitability and also
the Efficiency of the Bank.
Low Job Satisfaction:

Understanding the effective management of the Human Resource is the most difficult
challenge faced not only by the bank but also by all the Organizations. Even though the
people have been sacrificed in new Organizational Developments, it is becoming clear that
the true lasting competitive advantage comes through human Resource and how they are
managed. BOP does not seem to be focusing on the issue of the job Satisfaction of the
Employees.
Lack of Specialization:

INTERNSHIP REPORT
This famous and useful concept given by Adam Smith in 1776 seems to be missing in the
bank. The Employees are constantly rotated from one job to another job of totally different
characteristics in the view of giving them of know-how of working in all the Departments.
But this is not a good tactic by the management
Centralization:
There is a high degree of Centralization. Almost all the decision-making is in the hands of the
Upper-Management located in Karachi. But Centralization is effective up to a certain level
otherwise it becomes inefficient and its time costly.
I personally observe that delay occurred in the Operations of Employees only due to the fact
that they had not any Instructions from The Head Office.
Lack of Training Facilities:

Presently there is a training Programme for the New Recruiters but there is a need to provide
them with extra Training so that they may use it successfully during their practical work .It
takes a little time for the new recruiter to have some know-how of the banking work because
he has pressure of not only the new work but also the responsibility that he has been entrusted
with.
Ambiguity in Job Design:

There is not a clearly defined set of activities for the employees of the bank apart from a few.
Same person is found working in more than one place.
OPPERTUNATIES
INTERNSHIP REPORT
The Bank according to my observation faces the following opportunities:
Wholesale/Corporate Banking:
The corporate Bond Market is still in infancy in Pakistan. Few companies such as PTCL,
WAPDA introduced corporate Bonds for General public and received good response but
other companies took no similar initiative. Market for corporate bonds needs to be developed,
as it will offer greater Opportunities to the bank.
Technological Advancement:
Effective use of advance technology represents a major opportunity to an Organization to get
a corporate edge over its rival. It has been the policy of BOP to adopt up-to-date technology
in all its operations, which have helped in efficient servicing, erased limitations of traditional
geographical Markets, and has saved time and energy. Use of Telecommunications,
Computers, Dataaccess and storage Devices; fax Machines, Online Database and software
show that BOP is properly capitalizing on its opportunity.
Market Development:
An Organization offering its products in large number of markets is in a better position to
ensure the better inflow of the economic benefits. Our economy shows huge Opportunities in
different territories of the Country BOP has lots of Branches in the different cities of the
Country and it is continue to opening branches not only in Big cities but in smaller cities as
well to have the convenience of their customers for the use of the ATM Machine.
Co-Operations among Competitors

Nowadays a trend has generated among the Competitors to join hands in order to reap large
profits. Strategies that stress co-operation among the Competitors are used frequently. So the
factor of co-operation must be kept in mind.

INTERNSHIP REPORT
THREATS
High Employees Turnover:

As discussed above, the Job Satisfaction level of the Employees is very low resulting in
higher turnover, which is bad for any organization as there are huge, monetary and non-
monetary costs involved in fresh Recruitments.
High Charges:
The schedule of charges indicates that fees charged by the bank on the various services it
provides are extremely high. it may result in decrease in the number of its existing
Customers. This could be very alarming situation for the bank in case competitor grasped the
opportunity and lowered the rates. The result will either be the lost of the market share or
decrease in the charges resulting in lowering banks income.
Less Attractive Rate of Return:

Considerable competition is faced by the commercial banks in attracting deposits from
individuals or small investors. In contrast, the Govt of Pakistan National Saving scheme
offers attractive package of the Rate of Returns.
Stiff Competition
BOP is strictly facing fierce competition from the Banks within the country and also the
foreign banks who enjoy a good Market position.
Less Experienced Staff

Owing to huge turnover of Employees, number of experienced and trained staff is very low.
Majority of the staff working in the Bank branches is quite young and inexperienced.

INTERNSHIP REPORT
Conclusion
As we know that internship is great tool for getting practical and professional knowledge. Ab
I have learnt lot of professional activities from this branch. I have worked in the various
department, learnt something new from each, explanation about tasks are available in training
program Report portion. After writing comprehensively report on BOP I have reached at this
point, on some aspects, BOP has strength over other banks as you have seen in the SWOT
analysis.
But on the other hand, during my stay at this branch and after write this report, I have found
some issue regarding BOP Promotion activities. BOP do not have a modern marketing
concept as compare to others, due to less participation in promotion activities BOP is facing
low sales or low deposit. Presently now till BOP has adopting tradition activities, but BOP
management cannot know it is age of competitions. As I have written in the critical analysis
BOP HR practice is also very poor. Employee motivation, employee job satisfaction is not up
to the market. BOP has not any sound Performance appraisal system, where employee could
get maximum benefits.
On the other hand BOP needs a good supervision and leadership because the role of
supervisor is very difficult. It requires sound leadership skills and ability to treat all
employees fairly. BOP should teach your supervisors, managers to use positive feedback. I
have also observed BOP is not offering attractive salary to their employees as compare to
other banks. Salary is not a motivator for workers. But they do want to be paid fairly. BOP
has to make sure that it has clear policies regarding to salaries and bonuses.
RECOMMENDATION
During my internship in Bank of Punjab I get some knowledge about banking system. Here,
I deeply observed the functioning of the branch. In the light of these observations, I suggest
the following recommendations for further progress of the Edgerton road branch, these
suggestions are:
Branch Premises:
Branch working environment should be improve and renovated with latest furniture and
interior decoration. External look of the branch is not seemed to be attractive so it should be
clean and well designed. Sufficient seating arrangements for customer is not available here,
so sufficient service area and seating arrangements must be provided for customers.

INTERNSHIP REPORT
Staff Behaviour
Staff behavior in term of customer dealing should be uniform for all customers, without any
favoritism and nepotism that discourage the other client.
Lengthy Procedure
The book keeping system and filling system of the bank is so lengthy and time taking. So
staffs document processing time, should be reduced to improve working efficiency through
proper training
Proper Check
During two months of my training, I feel that their cheques payment service and other bills
receiving service is very slow, in this way they deliberately waste the time of their customer.
Therefore, their should be a proper check of manager on them so that then can recognize and
understand their responsibilities.
To Be Conscientious
It is usually observed that staff members waste lot of valuable time while performing their
duties. During my training period, I feel that all staff members make a lot of unnecessary
telephone calls to their relatives while dealing with their customers. In this way they not only
waste a very precious time of their customers, but also waste the wealth of the country. So I
feel that staff members are very irresponsible in performing their duties. So, staff member
should be conscientious.
No Proper Security System

During my training, I feel that security system to safeguard the cash deposits of bank is not
book. The gunman of the bank is often busy in doing some irrelevant job. So bank should
take steps to improve its security system.

INTERNSHIP REPORT
Other Suggestions
New blood should be injected and young professionals should be recruited on merit to
induce enthusiasm in the bank. Customers should be focus of all activities to boost up
the business.
New marketing strategies should be developed to attract new customers.
Maximum automated machines should be used.
Security should be strengthening to minimize the chances of deceits.
The workers should be given a sense of teamwork and the manager should be trained
to manage the team as good leader.
There should be a proper check on staff member so that they become punctual and
conscientious.
Business promotional activities should be increased to enhance the business.
BIBLIOGRAPHY
Hienz Weihrich and Harold Koontz. Management, 10th edition, New York: Mc Graw-
Hill Inc.1994
.
BOP Annual Report 2010.
BOP Annual Report 2011
BOP Annual Report 2012

.
BOP HR Department
Sekran, U.2000 Research Methods of Business USA. John Willey & Sons, Inc
Thompson S.L. strategic Management concept& cases, New Delhi Tata Megra-Hill
publishing Company Ltd

INTERNSHIP REPORT
INTERNET SOURCES
https://www.bop.com.pk/index.aspx
https://www.bop.com.pk/index.aspx
https://www.bop.com.pk/Products.aspx
https://www.bop.com.pk/Branches.aspx
http://hrweb.berkeley.edu/guides/managing-hr/managing-successfully/performance-
management

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INTERNSHIP REPORT

The Rise School of Accountancy Mussaret Nazim

The Rise School of Accountancy Mussaret Nazim

INTERNSHIP REPORT ON BOP

SUBMITTED TO: Area Manager : Amir Zafar

MBA 3.2 (Finance)

Scession 2013 to 2017

The Rise School Of Accountancy

The Rise School of Accountancy Mussaret Nazim

The Rise School of Accountancy Mussaret Nazim

The Rise School of Accountancy Mussaret Nazim

The Rise School of Accountancy Mussaret Nazim

Overview of the Organization (BOP) --------------------------------------- (15-16)

Introduction of the organization..(17 25)

The Rise School of Accountancy Mussaret Nazim

Division of the BOP . .( 26 28)

Organizational Hierarchy Chart

2. Policy Formulation Process .. (36)

Employes personnel in various section (36 37)

The Rise School of Accountancy Mussaret Nazim

Cash dep job specification

Major Managerial policies .. (48 50)

The Rise School of Accountancy Mussaret Nazim

Human Resource Management

Security and Facility Management

Correctional Leadership and Effective Public Administration:

Inmate Programs and Services:

Impact on the moral and effeicency of Employees

Profit Loss Sharing Cheque Accounts

The Rise School of Accountancy Mussaret Nazim

BOP Ziada Munafa Saving Account:

Inventory Turnover Ratio

SWOT ANALYSIS Error! Bookmark not defined.

The Rise School of Accountancy Mussaret Nazim

The Rise School of Accountancy Mussaret Nazim

The Rise School of Accountancy Mussaret Nazim

University of the Punjab

House#6 street#2 Bismillah chock pico road, Lahore

SUBJECT: INTERNSHIP REPORT ON THE

The Rise School of Accountancy Mussaret Nazim

TITLE: AN INTERNSHIP REPORT ON

The Bank of Punjab LHR.

AUTHORIZATION: This report is a necessary part of BBA

(Hons) degree program.

REOCMMENDATION:Department of business administration of the university

The Rise School of Accountancy Mussaret Nazim

METHODOLOGY: HR practices followed by the bank seen practically whether the

PROBLEMS: A central problem in the HR department the bank is lack of

between of the organization as well as into a specific branch.

Transfers/postings etc on middle management. Likewise lake of

TIME FRAME: Finally, if the recommendations are accepted, the programme

The Rise School of Accountancy Mussaret Nazim

The Rise School of Accountancy Mussaret Nazim

Passion Reborn At BOP:

The Rise School of Accountancy Mussaret Nazim

NATURE OF THE ORGANIZATION

The Rise School of Accountancy Mussaret Nazim

BOP is a Governmental Organization. it implements the policies of State Bank of Pakistan as

Present status of the organization:

The Rise School of Accountancy Mussaret Nazim

Current Business Volume:

Assets(Current + US$ 2.7

Competitors of the BOP:

Muslim Commercial Bank Limited,