BANK OF PUNJAB VEHARI ROAD BRANCH

Submitted to
Ma’am Sumavia
Submitted By:
Muhammad Arslan
BBA (Hons)
Morning
Roll # 6424
Session (2015 to 2019)
SUBMISSION DATE
011-09-2019

DEPARTMENT OF MANAGEMENT SCIENCE

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Dedication
I dedicate this report to my Cousin and friends 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 them which was necessary in order to complete this challenge assignment.

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Acknowledgement
I am very thankful to “Almighty Allah” the most beneficent, the most mercy full who has given the
strength to complete this task. I am also thankful to branch manager and operational manager
respectively of the bank of the Punjab vehari road near jail mor , Multan . Without whose guidance and
support it would not have been possible for me to accomplish this assignment.

Furthermore, I am indebted to the staff of the staff of the Bank of the Punjab vehari road near jail mor
,Multan . From whom I have gained much experience regarding operational work of bank is concerned.

The last but not the last I convey my credit and thankfulness to the virtual universities Authorities.
Without whose well in time support and guidance it would be much difficult for me to achieve this task
successfully.

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 Executive Summary
The bank of Punjab (BOP) established in 1989 and got the status of scheduled bank in 1994. The bank of
Punjab offer number of products in their customer. There are 293 braches of BOP in the whole country.
Functionally the bank of Punjab is divided in the division and the each division is headed by the general
managers.

The government of the Punjab holds the majority of the shares in BOP. It is doing business in
commercial banking and the retail banking. Corporate banking treasury and investment and trade
finance. The shares of BOP are traded in all three stock Exchanges of the Pakistan.

My internship program period is 1st august 2019 to 12 september 2019 . During internship, I worked in
Accounts opening Department, Accounts Department, Clearing Department, Remittance Department,
Advance and Credit Department and Bill for Collection Department.

As for as the different ratios of the Bank Of the Punjab, they all give the healthy sign regarding financial
position of the Bank as well as the operation results of the different financial years. All ratios are fully in
accordance with the banking industry’s standard and norm which is a yard stick to measure the
performance of any bank. These ratio depict and indicate that the financial strength of the on a higher
side and further prospect of the Bank is brighter.

At the end the conclusion and the recommendations are the part of the report. Bibliography is the part,
which contain all the references from I, obtained data to prepare this report.

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 TABLE OF CONTENTS
Overview of the Organization ....................................................................................................................... 6
a. Brief History ...................................................................................................................................... 6
b. Introduction ...................................................................................................................................... 6
c. Policy of the organization ................................................................................................................. 7
d. Competitors ...................................................................................................................................... 8
Organizational Structure ............................................................................................................................... 9
Plan of internship programe : ..................................................................................................................... 12
e. Internship Branch Introduction....................................................................................................... 12
f. Number of Employees Working in the Branch ............................................................................... 12
g. Starting and Ending Date of Internship........................................................................................... 13
h. Names of Department where I worked .......................................................................................... 13
Training programme : ................................................................................................................................. 13
i. Account Opening Department ........................................................................................................ 14
j. Accounts Department ..................................................................................................................... 17
k. Remittance Department ................................................................................................................. 17
l. Clearing Department....................................................................................................................... 18
m. Bill for Collection Department .................................................................................................... 19
Reflective journal entries : .......................................................................................................................... 19
n. Formula D-I-E-P ............................................................................................................................... 19
Work sample : ............................................................................................................................................. 21
Critical Analysis ........................................................................................................................................... 22
Financial statement :................................................................................................................................... 24
o. Ratio Analysis .................................................................................................................................. 24
SWOT Analysis............................................................................................................................................. 27
a. Strength........................................................................................................................................... 27
b. Weaknesses: ................................................................................................................................... 27
c. Opportunities: ................................................................................................................................. 28
d. Threats: ........................................................................................................................................... 29
Conclusion ................................................................................................................................................... 29
Recommendations ...................................................................................................................................... 30
Annexes : ..................................................................................................................................................... 31
Refereces :................................................................................................................................................... 35

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 OVERVIEW OF THE ORGANIZATION

A. BRIEF HISTORY
The Bank of Punjab was founded by Tajammal Hussain and it functions as a scheduled commercial bank,
with a network of over 550 branches in major business centres throughout the country[4]. It is the
seventh largest commercial bank of the Country. It provides a wide range of banking services including
deposit in local currency; client deposit in foreign currency; remittances; and advances to business,
trade, industry and agriculture. First Punjab Modaraba (FPM), a wholly owned subsidiary of the bank,
was established in 1992, and is being managed by Punjab Modaraba Services (Pvt) Ltd.[citation needed]

Currently, The Bank of Punjab is headed by Mr. Khalid Siddiq Tirmizey who serves as bank's acting
president & CEO. [5]. He also has been Chairman of Board of Directors of First Punjab Modaraba.

B. INTRODUCTION
Banking plays a major role in a country’s economy. After partition of India and Pakistan British
government’s commission distribute the reserves between Pakistan and India.

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In August 1947, various Banks transferred their headquarters and funds to India. Before partition of Pak-
o-Hind, some Banks were operated which were Chartered Bank, Grind-lays Bank, Imperial Bank of India,
Australasia Bank and Habib Bank. After the independence of Pakistan, Muslim Commercial Bank Limited,
Bank of Bahawalpur Limited, Punjab National Bank and National Bank of Pakistan were providing
banking facilities to general public.

The State Bank of Pakistan was inaugurated by our great leader Muhammad Ali Jinnah. On 1st July 1948.
Australasia Bank and Habib Bank were providing facilities to the Pakistan’s nation. After some period,
Australasia Bank Limited was converted into Allied Bank of Pakistan.

State Bank of Pakistan is a Central Bank of Pakistan. Other Banks are Commercial Banks, Specialized
Bank and Investment Banks.

Now a day in Pakistan, fifty four banks are operated with thousands of branches. Banks are providing
Banking facilities to their customers and clients by offering different services and packages.

Pakistan’s banking sector consisting of Islamic Banks, Private Banks, Public Sector Banks, and Micro
Finance Banks. These Banks are doing Corporate Banking, Trade Financing, Lease Financing and some
Banks are providing online banking facilities, ATM facility and money transfer facilities also.

Banking sector is a back bone of our economy. If this sector is making progress than whole economy is
also growing a lot. Our Agricultural sector, Industrial sector, Mining sector, Export sector all depend on
the banking industry because Banks provide long term funds as well as short term funds to all these
sectors to meet out their short term as well as long term requirement. Hence, banking progress is
necessary indeed.

C. POLICY OF THE ORGANIZATION

The Bank of Punjab is working as a programmed commercial bank with a setup of almost 284 branches
at all over main locations in the Punjab.BOP offers all types of banking services such as deposits in Local
currency and client foreign currency,remittances,and advances to business, trade, industry and
agriculture. The Bank of Punjab has infact entered a new age of technology to the nation under skillful
and specialized hands of its management. The bank of Punjab plays an essential role in the economy
through enlistment of local resources, promoting savings and providing funds for investments.

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Decision making at BOP is decentralized due to its operations at different regions so they all are doing
their own planning’s but all the vital decisions must be approved by higher management at Head office
directors at bop have worked with the best organization in the world. So they have put in a cognisant
effort to inculcate a tradition which has centralization only to the need where it requires. BOP
decentralized system motivates the employees a lot as they get the sensation of being a part of
organizational decision making.

There are 8 major divisions in BOP which includes Audit and Inspection Recovery Division
responsible for checking and reporting on the management compliance with the policies and
directives. Finance Division Prepare the policies regarding the sanctioning loan and define
credit limits against specified securities International division which is providing important
services to the bank regarding the matters of International Trade, Import, Export Letters of
Credit, Travelers cheque etc.Credit Division which is concerned with the operational working in
general banking, which is concerned with the routine working of the bank Business Development
Division It promotes the bank basis i.e. deposits and work for the overall development of the bank and
Human Resource Division which includes recruitment, staff training and evaluation Operations Division.

Bank of Punjab believes that people are their most important assets so one of the strategic objectives of
organization is to hire best individual for the organization that’s why recruitment department have
stressed on the quality of people. BOP recruitment procedure includes screening of CV and evaluation
based on fixed criteria. After selection the employee’s serves probation period of three months after its
completion the board evaluates the employees and grant him the letter of confirmation.

D. COMPETITORS
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

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 Chartered Bank Limited, Habib Bank Limited, Habib Metropolitan Bank Limited,

And Bank Al-Habib Limited

ORGANIZATIONAL STRUCTURE

Organizational Hierarchy chart

Chairman

Board of Directors

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 Chief Executive Officer

Executive Committee

Executive Incharges

Area Manager North Area Manager South

b.Bank of Punjab
/Number of employees : Number of employees in Bank of Punjab are 6,092 and total branches are
1126.

c.Main Offices
Head office bank of Punjab is held at

Main Boulevard Gulberg #3 Lahore

Main branch is held in Lahore

Officer Training Institute

Upper Mall, Lahore

ATM Call Centre

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Consumer Banking

d. Introduction to All Departments

The departments and divisions of Bank of Punjab are as follows:

• Retail Banking Division

• Special Assets Management Division

• Credit Administration Division

• Human Resource Division

• Finance division

• Information Technology Division

• Operations Division

• Credit Risk Management Division

• Corporate Banking Division

• Control and Compliance Division

• Training, Research, Communication and Public Division

• Consumer banking Division

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• Audit and Inspection Division

• Law Division

e. Comment on Organizational Structure of Bank of Punjab

Division of Labor
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.

PLAN OF INTERNSHIP PROGRAME :

E. INTERNSHIP BRANCH INTRODUCTION

I started my internship at the vehari branch from August 1st, 2019 to Sept 12th, 2019. It’s the Branch of
bank of Punjab that is situated in vehari road near jail mor .

F. NUMBER OF EMPLOYEES WORKING IN THE BRANCH

The following are the names of employees that are designated at various places in the bank.

Name Designation
Mr .kashif mehmood Branch Manager

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 Mr. arshad Operation Manager
Mr. furqan Officer
Mr. haris Officer
Mr. rehan Officer
Mr. uzair Officer
Mr. umair Cashier

G. STARTING AND ENDING DATE OF INTERNSHIP

From: August 1st , 2019
To: September 12th , 2019

H. NAMES OF DEPARTMENT WHERE I WORKED

I have worked in the following departments during my internship at Bank of Punjab.

Account Opening

Remittance and Bill Section

Deposit

Govt receipts and Payment

In account opening I just learned about the account opening procedure that how can we open an
account first thing that is required to open a account is biomatric of that person then we do the
screening . After that we will do screening in which we will filter the people first we will check that this
person is involve in terrorism or not . then we will check that this person is in linked with any political
party . then we will check his private info . and then we will check account opening form current or
saving .after that I work in remittance and bill section . and then we work in deposit department where
we check deposit . and then at last we work in govt receipt and payment .

TRAINING PROGRAMME :

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First Day in Bank of Punjab

I started my internship program on 1st august, 2019 at the bank of Punjab which ended on 12th
September , 2019. On first day of my program I was briefed by the branch manager about different
branches of the bank I was also told the major rules and regulations which were being observed by the
management of the bank I was also giving some briefing by the Manager Operation which proved as a
miles stone during my internship program. I also met different members of the staff in different
branches of the bank where at I SWOT for basic knowledge about those branches. Then I started my
working in accounting opening department.

I. ACCOUNT OPENING DEPARTMENT

In this department, I worked for the period from 1st August , 2019 to 7th August 2019.

Account Opening Procedure:

Account Opening Form

Customer approach to bank and an account opening is given to him for competing and signed by the
account holder at different places of the form.

Completion of the Form

Account form is completed in all respect and checked by the bank officer and is duly signed by the
customer which is also verified by the Operation Manager.

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Specimen Signature Card (SSC)

Signature specimen card is compulsory for opening an account in the bank. Without getting signature of
customer you can not open the account.

Signature Difference Form

If client signature differs from the CNIC, the signature of the client is taken on a signature difference
form

Computerized Checking

The bank officer connected via internet to the NADRA website checks the record of his customer’s social
life. If the record of the person is ok, then the officer of the bank authenticates the record under his
signature and stamp and send it to the Branch Manager

Account Number

Account number is written on the cheque book requisition. After completion of all procedures, the bank
prepares a letter and sends it to the client at his postal address to pay gratitude to the customer.

Cheque Book Issuance

The first cheque book consists of 25 leaves and no charges are deducted from the account the account
of client. There after bank sends a recommendation for 25, 50 and 100 leaves with different prices and
charges are deducted from the account of clients.

Procedure for Closing of an account

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If customer wants to close the account, he fills up an account closing form and signs there in, account
balance should be zero, approval is taken from the Branch Manager Specimen card is taken back and is
attached with the form and account is closed.

Procedure of issuance of Bank Statement

A requisition slip is taken from the customer duly signed and the period from which the customer wants
to take the statement. After verification of signature Bank Statement is issue to the customer and Rs. 55
are deducted from account of customer

Procedure for ATM/PIN Issuance

Bank of Punjab provides the ATM facility to its Customers and they can withdraw their amount at any
time through ATM. For issuance of ATM, customer has to sign an ATM form and Bank office make an
entry in the system and within 15 days bank receives ATM card from Head Office which is given to the
customer.

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 J. ACCOUNTS DEPARTMENT

When I completed my training in Account Opening Department, the Branch Manager sent me to
Account Department. I worked in Accounts Department from 8th August 2019 to 14th August , 2019.

Account department is responsible for budgeting keeping record of the revenue and expenses all
transaction that are take place in the bank and their physical prove (voucher) are come to the account
department next day these voucher are also posted to computer and the computer generated report of
daily transaction is created in IT department and then they send to the account department to match or
tell to computer generated report and their voucher of daily transaction and save it as a physical record
that these transaction are take place in the bank at following date. The report generated by the
accounts department on a daily, weekly, monthly, bi-yearly and yearly is written in a proper format. It is
neither necessary nor possible to get acquainted by all of these reports in a short period of time.

Some of the common reports are: Monthly Assets & Liabilities, Monthly Budget Review Report, Monthly
Monitory statement, Monthly Performance Review Report and Monthly fixed investment. For these
statements, five reports carry extreme importance. The five reports are: Daily position of advances and
deposit, Statement of affairs, Daily exchange position report, fixed assets statement and Monthly review
of performance.

The account department of BOP has to record even the minor expenses of the branch like tea for staff,
stationery for the branch.

K. REMITTANCE DEPARTMENT

I worked in Remittance Department from 15th August , 2019 to 22nd August, 2019

Remittance department transfers the fund form one bank to another bank and one place to another
place. In this department collection take place. The bank of Punjab makes payment of only open cheque
on the counter and prohibits the payment of crossed cheques. Bank of Punjab transfer money from one
place to another place by way of payment order, demand draft, inward collection, outward collection.

Demand Draft

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An order to pay money to the payee who is residing outside the city, Demand draft can be for a
customer who may or may not have and account in the bank but the other person’s account must be
maintained with the bank for which the payer has demanded the demand draft.

Payment Order

Pay order is order money but this payment is to be made within city. In other words it can be said that
the payee and the payer should be in one city. In pay order payment can be made in cash, clearing and
transfer.

L. CLEARING DEPARTMENT

I worked in clearing department from 23rd August , 2019 to 30th August, 2019. I learnt their about
clearing of different cheques and remittance handling. I was told there the main objects of clearing.

I received all the clearing cheques and made a schedule of these cheques after making entries in
outward and inward clearing registers and sent the same to main branch where at all the cheques were
sent to NIFT(National Institutional Facilitation Technology)

NIFT

NIFT stand for National Institutional Facilitation Technologies. Clearing house of SBP has shifted a part of
its work to private institution names NIFT. NIFT collets cheques, demand draft, pay order, travelers
cheques etc. from all branches of different banks within city through its carriers and send them to the
branches on which these are drawn for clearing. NIFT prepare a sheet for each branch and send it to
each branch as well as to State Bank of Pakistan where accounts of Banks are settled.

Types of clearing

Inward clearing:

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When cheques of other Banks are deposited in our bank, after clearing these cheques through NIFT by
the other Banks on which these are down. Accounts of customers are credited.

Outward clearing:

When cheques of our bank are deposited in other Banks and these cheques are sent to us for
verification, we debit the of our client after verification their account.

M. BILL FOR COLLECTION DEPARTMENT

I worked in Bill for Collection from 31st August, 2019 to 6th September , 2019.

Bill for collection is the clearing procedure for cheque, draft, bill of exchange, and promissory note in
case that a collection branch and a paying branch are located in different clearing areas.

Bill of collection provides service to their customer to get payment from the nearer bank at nominal
chargers.

REFLECTIVE JOURNAL ENTRIES :

N. FORMULA D-I-E-P
Describe :
In this step we will describe that what happened in the bank what we see what we observe
in the bank . first of all I observe the behavior of employees with each other and with other customers .

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the behavior of employees with each other was very good as there is a term “the creativity of any
organization can be measured by the laughter meter” so that why they were so friendly with each other
and there was a good environment due to their positive energy and friendly behavior with each other .
they were also very friendly and co operative to us . they teach us everything and help us . the
environment of bank was very good .

1st of September was my first day in Bank of Punjab. I introduced myself to everyone. The audit was
executing that day. An officer from main branch was there to each point in his audit report. That process
was done in 3 to 4 days after my arrival. That in last days of 1st week I met with Haris shb who teach me
process of account opening. He told me the basics and briefly explained. On 12th of September, Haris
shb taught my in detail and luckily a customer wanted to open his account. He was a trader and he
wanted to open a business account. I watched it very carefully and also Haris shb expound it for me.
After Monday ,I contacted with Sir Furqan for Clearing and he taught me basic of clearing cheaque. In
further few days , I have learned the clearing process and he taught me with demos. That week I spend
in that . the next week was about Comprehensive at Univerty and we couldn’t learn any thing. And next
week, after spending 3 days of Bakra Eid , I rejoined bank and consider my further learning.in last two
days of that week, I learned about remmittence and next week I revised all methods and also visited
other departments.

Interpret :
there I saw and observe everything that how people are good to each other in practical life .
and how they do team work with coordination and with the help of eachother .they discuss their
problems with each others . I just learn many more things their related to the practical life by just
grounded by these people. My connections with other employees very good and very positive feeings
for them as they treat us like their family members like we are like their brothers . my hypothesis and
conclusion is that you need to be nice with your collages and customer stay positive good to others
never think negative for others just be good to others and belive in the goodness of life and life reward
you again and again.

Evaluate :
In this step we will evaluate efficiency and effectiveness of what we observed . what I
observed is the work of bank is very easy but very risky only one mistake can create a big problem for
you . so that’s why we should do work very carefully and with full of concentration . and the second
thing I observed is we need to be good and nice to others than others automatically be nice to you .
sometimes you need to be quit if you other person can be hurt by your words because its one of the big
sin . and the teamwork and coordination is very necessary for doing better work . and always do sharing
. sharing things with other will strong your bond with others .

Plan :
in this step we will discuss that how this information is usefull for us in present or future . first of
all I want to tell you that this experience was very good and ive learned very much there that how to
deal with people how to talk with them how to deal with customer and how to make good connections
with others and this is just like a trailer for me for my future life and from this experience ive just
learned that how ill handle my practical life in future .

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 WORK SAMPLE :

1)DEMAND DRAFT
Demand draft is an order in writing given by one branch of the bank on the behalf of the customer to
another branch of the same bank with certain person.

PROCEDURE
1. A draft voucher contains the following information o Name of the parties involved o Date o Amount
to be sent o Account number (if DD is crossed)

2. Voucher is filled to earn excise duty and exchange commission.

3. Then cash receipt is sent to the account department to keep the record of the amount paid in cash
scroll.

4. Accountant hands over the DD leaf and DD voucher to his assistant to record sender’s name , amount

5. Payee’s name in the register then assistant gives it to the officer along with the DD for authentication.

6. After authentication of DD it is given the sender and advice to the concerned branch.

7. So as soon as party shows the DD payment is done through the concerned branch.

Parties Involved
In demand draft following parties are involved

1. Purchaser or Sender, A person who sends money to a certain person at a particular branch is
purchaser.

2. Issuing or Drawing Branch, The branch from where the draft issued to another branch of the same
bank.

3. Drawer Branch, Branch to which draft has been sent and has to pay the amount.

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4. Payee, Payee is a person who is named to receive the amount after showing the demand draft to the
drawer branch.

2)MAIL TRANSFER
Through mail directly credit is sent to the receiver’s account from one branch to another branch of the
same bank.

Procedure
1. Firstly the voucher is filled with the amount to be sent, name and account number of the payee, date
and the name of the branch to be sent.

2. Voucher is filled to earn income in order to exchange, postage the amount to the mail transfer.

3. The sender deposits the total amount in the cash department.

4. The cash officer affix received cash stamp & amount written on it with red link and hands it over the
voucher the officer.

5. The officer writes the cash amount in the scroll and gives it to his assistant.

6. Mt leaf is filled according to the information given on the voucher by the sender then this information
is noted on MT register which is sent to the officer for authentication.

CRITICAL ANALYSIS

Organizing

i. POOR FILING SYSTEM RECORD

During my internship in the bank, I observed that the filing system of the bank is not modern and thus, it
has a lot of potential for development and can be optimized and upgraded by using databases and
computerized system.

Human Resource Management

Job Analysis

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The job analysis of the bank made me realize that some people are simple graduates therefore during
the hiring trained, skillful and job oriented people are encouraged for the job.

i. EMPLOYEE APPRECIATION
Another very important thing which is ignored by the bank is appreciation which is given to the
employee on their good performance. Hard work and performance of employee is not recognized and
appreciated which crates dissatisfaction and performance decline.

Marketing Management and Customer Relation Management

i. CUSTOMER DEALING & SATISFACTION

In BOP the dealing between the customer and the teller is well organized but during the rush customers
have to wait for long periods therefore it is very hard for a potential customer to get the information.
Facilities for customer service are not proper and sometime customer feels hesitation before
approaching a system which is apparently complicated due to poor presentation.

ii. LACK OF SECRECY OF CUSTOMER

The Bank duty is based on secrecy but employee don’t maintain secrecy especially during the rush they
speak loudly account position and clearance of cheque so person can get whole information from the
ledge.

iii. LACK OF BUSINESS COMMUNICATION

There is no appropriate way to provide information to the customer. The Bank loses your confidence if a
minor dissatisfaction is created and tension in the mind of customer.

Information Technology

i. LACK OF COMPUTER TECHNOLOGY

One of the problems that were faced by the employees was the lengthy procedure of the paperwork.
Moreover, the lack of computer technology is burdened over the bank employee so they are unable to
give proper attention on the clients and understand their difficulties during the doing job.

Banking and Finance

i. LOW PROFIT
BOP provides low profit rate to their customer so most of the customers have shifted their account to
the National Saving Center due to their high profit. BOP should increase their profit rates in order to
attract the customer.

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 ii. EFFICIENT BANKING
Efficient banking is don’t emphasize on number of accounts but grater amount of deposit while in BOP
account are more but depositing are low.

Controlling

i. MANAGER AUTHORITY
Manager has a limited authority he just approves the job so that when manager is not present in his
office. The customer having a wait for many hours and I observed that there are delays in sanctioning
loan cases form the head office which causes dissatisfaction to the customer.

Planning

i. INCOMPETENT HOD’S
I noticed during my work-span that the HOD’s in the bank used to slack during the peak hours,
HOD’s should be more active during the bank peak hours and interact more with the customers to
boost their confidence in the Bank. Theory X should not be followed but the Theory Y should be
followed to ensure more friendliness in the air and higher customer satisfaction.

ii. LACK OF PLANNING ABILITIES

I noticed that during the workload periods such as Pensioner’s first week of the Month, there was no
efficient plan devised by the Manger, he used to just sit around and wait for things to happen, while
employees do get frustrated and they do not work by heart which in turn effects the Bank’s productivity.

FINANCIAL STATEMENT :
O. RATIO ANALYSIS
For the analysis of the financial statements of the BOP we use the Ratio
Analysis in order to get a clear vision about the financial position with simple interpretation. For
this purpose, we can analysis the financial statements through the following ratios:

Current Ratio

Formula: Current assets/current liabilities

Years 2016 2017 2018

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 Current assets 26,891,546 24,897,231 27,345,001

Current 34,236,112 35,657,945 36,997,012

liabilities
Current ratio 78.54% 69.82% 73.91%

ROE (Return on Equity)

Formula: Net Income/ Total Equity*100

Years 2016 2017 2018

Net income 8200894 8999902 7282900

Total equity 63179222 75133715 71108931

ROE 12.98% 11.97% 10.24%

Debt Ratio

Formula: Total Liabilities/ Total Assets

Years 2016 2017 2018

Total liabilities 10964123 11525221 11986543

Total Assets 159795244 196470499 126383374

Debt Ratio 6.86% 5.86% 9.48%

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Debt to Equity ratio

Formula: Total debt/ Shareholders equity

Years 2016 2017 2018

Total liabilities 10964123 11525221 11986543

Shareholder equity 63179222 75133715 71108931

Debt to equity 17.35% 15.33% 16.85%

ratio

INTERPRETATION

1) Paid –up- capital remained same during the last four year no minor change has been
observes.
2) Reserves have remained same in 2016 & 2017 but these are increased as compared to2018
& 2017 the purpose may be was to retain more funds in hand for the planning &
development of the bank.
3) In total assets smooth change can be observed the reason may be the increase of clients of
banks because in only 2015 3 million clients bank with BOP. within the country &
overseas branches.
4) Total Deposit of the bank has increased in each previous year the main reason of this
increase is Bank’s foreign currency deposits in Pakistan have increased.
5) Advances increased through all four years because bank has continued its policy of
supporting the priorities established by Govt. and rendering services to all sectors of the
economy with specific emphasis.
6) The investment slightly declaimed due to increased diversion of bank’s resources for
financing the requirement of priority sectors of the economy.
7) Total Income & Total expenditure remained slightly unfavorable due to increasingly
competitive environment.

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 SWOT ANALYSIS

For the Environmental scanning of the organization SWOT analysis is done. It is the analysis
of Strengths, Weaknesses, Opportunities and different Threats an organization may face
from the external environment. BOP’s SWOT analysis is:

A. STRENGTH
Major Strength of Bank of punjab is its Brand Image and its Brand Name. BOP is considered
to be the Pillar of Pakistan’s economy. BOP has the caliber to compete with Pakistan’s best
Multi-National Banks and has the ability to keep up with the newly emerging trends of
modern banking and computer systems. Over the years, BOP’s reserved funds have been
increased. BOP is expanding business worldwide which truly is an advantage over rest of
the Banks in the Business. BOP holds a vast group of customers globally and locally. A few
more strengths of BOP are.

i. STRATEGIC MANAGEMENT
The top management of the Bank as stated earlier is highly strategic; they devise the
strategies after consulting with the researchers, and approve strategies which in turn
benefit the Bank in long run.

ii. HAVING THE LARGEST NUMBER OF ACCOUNTS IN PAKISTAN

Due to having branches in all over the country BOP has achieved the milestone of having
largest customer pool as compare to any other Bank in Pakistan.

iii. IT IS A GOVERNMENT BANK

Most of the Government Issues, like pensions, funds and other funds are dealt by BOP, being a
Government Bank; it serves the people in every way, where State Bank cannot reach.

B. WEAKNESSES:
Downsizing has been the biggest weakness of BOP. Many devoted employees were asked to leave
because of the downsizing. Lot of confusion is found in the employees.

High level Managers are hired from famous institutes and organizations. As those employees have a
different background, it makes it difficult for them to make healthy decision which can be in benefit
of this bank. Downsizing caused many customers of NBP to leave. This downsizing caused threats to
the bank as the competitors took advantage. BOP is losing the Market share and its customer’s
streamline. Few major weaknesses of BOP are given below.

i. RURAL SECTOR DEVELOPMENT IS GIVEN LESS ATTENTION

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Keeping the fact in mind that I worked in the Main Lakki Marwat Branch, I observed that very little
attention was given to our bank, the more farther you go from big cities, the less attention is given
to the Banks.

ii. LACK OF NETWORK CAPABILITIES

Networking Infrastructure in our Bank was pathetic. Also the communication between the branches
is very hard and time consuming.

iii. POOR ADVERTISEMENT PLAN

During my internship and when I wasn’t doing internship, I have always seen BOP on a back foot
when it comes to advertisement. No advertisement plans are implemented; I could hardly find any
brochure or flare in our Branch.

iv. LACK OF TECHNICAL KNOWLEDGE

I observed the employees of the BOP are not technical y well equipped, they lack the basic know
how of the computer.

v. AMBIGUOUS JOB DESCRIPTIONS

Roles of the employees are not properly defined, I saw quiet a few workers changing seats, handling
cash, entertaining customers, the job descriptions shall be properly written and implemented
strictly.

C. OPPORTUNITIES:
A very bright professional future lies ahead of BOP. BOP has devised a huge plan to earn back its lost
position and the customer streamline from just like they had in the past and to increase their
profitability and regain the trust of the customers just like they used to have in the past.
Furthermore, BOP is the only bank which gives general public the ease of submitting their utility bills
all day long. The goodwill of the BOP is something that no competitor can achieve the way BOP has
done it.

i. GOOD IMAGE AMONG THE PEOPLE

Being the People’s bank and having trust of the customers is a great advantage for the Bank to
achieve new horizons of Banking and success.

ii. RAPID INDUSTRIAL GROWTH

Industrial growth in the country is a great opportunity for the Bank to introduce new opportunities and
schemes for industrial customers and increase the Bank’s Potential.

iii. NOW INTRODUCING THE MICRO FINANCING

Micro Financing has also been introduced to attract big investors.

iv. AGENT OF STATE BANK OF PAKISTAN

as stated few times earlier, being the trustee and agent of the State Bank Pakistan, this mark and
label can help the Bank to achieve success in the coming future.

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 v. TRAINING AND DISCIPLINE
Bank staff should be more professional and equipped with the Basic IT Knowledge and know how to
use the Computers.

D. THREATS:
Small Banks are not a threat to BOP’s reputation as the Customer Pool of BOP is full of huge
investors so these small banks cannot threat the integrity of BOP. But the major rivals of the Bank
include HBL and Bank Alfalah which can be a threat to BOP as they are emerging very fast. Some of
the other treats that BOP is facing are:

i. POLITICAL INSTABILITY IN THE COUNTRY

Political Instability in the Country is a very major threat for the Bank as the Bank is acting as the
trustee of State Bank Of Pakistan.

ii. NEWLY EMERGING COMPETITORS

Increasing competition is resulting in loosing the customers.

iii. LACK OF MODERN TECHNIQUES

BOP lacks the Modern Banking Techniques. Which gives its competitors an advantage to take over
the bank in customer number.

iv. INCREASING CUSTOMER COMPLAINTS

Customers are complaining about the incompetency of the staff.

v. COMPETITION IS INCREASING DAY BY DAY

New banks are opening, competition is increasing, BOP needs to improve quality or they will end up
losing their existing customers too.

CONCLUSION

During my entire training program, beginning from the internship till writing this report, I have
realized that the Bank of Punjab is a deliberate structured organization and it is serving its customers
all over Pakistan through its wide spread network of branches. It is offering many services and
products at easy markup rates to the valued customers. The customers are valued and are served at
the first priority. The employees of the Bank are very much cooperative and work whole heartedly
thus working hard for the success of the Bank.

Selections are made on the basis of merit but references and approaches are very much popular in
Bank of Punjab. The Bank serves the people well and it has initiated special moral initiatives while

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distributing pensions among people, especially the old age people who come from far areas to get
their pensions. They are dealt very kindly and the Bank atmosphere is very customer friendly.

RECOMMENDATIONS

The following are the some positive suggestion & recommendation for the BOP.

 In my opinion the transaction process should be short so that the time is saved for
both the customers and the bank. I am not saying that the system is week just to
advise the bank to be more efficient in internet banking
 Staff strength should be optimized and professional qualified persons should be
hired on the basis of merit.
 Remove the Nepotism & Create Delegation of Authority.
 It is recommended that proper training should be provided to the staff members
which will ultimately increase the performance of Bank over all.
 To sustain the job satisfaction, BOP needs to offer promotions and incentives from
time to time.
 Environment and Atmosphere should be more renovated and decorated at the
Branch offices.
 The bank should spend more on renovation of the branches to improve
environment and atmosphere to attract the customers.
 BOP needs to implement computer software to handle the load of work.
 There is lack of counters in the bank; more counters shall be introduced to facilitate
the customers.
 BOP needs to launch mobile banking
 Only two guards were present at the branch, the security level was not so good at
the branch; security needs to be looked after.
 For old aged customers and pensioners the Bank needs to introduce a new counter
as well which is dedicated to them all day long.
 I saw no inspection team come in for inspection during my work span, inspection
teams should work more efficiently.
 At our branch there was no separate counter for Utility bills, there should be a
separate counter for all sorts of utility bills.
 They need to enhance the process of allotting loans to be in a quicker manner.

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  Provide real information to the Shareholders.
 BOP is now needed to invest in those industries which are profitable for it e.g.
Pakistan Film Industry, Once again Establish the Textile Industry, Armed Force
Weapon Industry & also provide the Micro finance for the Home Industry.
 All of the above eventually provide satisfaction to the customer.

ANNEXES :
2016, 2017, & 2018

3 years summarize balance Sheet of BOP

Year 2016 2017 2018

ASSETS

Cash and Balances 56,533,134 78,346,465 30,900,737

with treasury banks
Balance with other 39,364,297 40,366,687
16,422,727
banks
Lending of financial 5,352,873 6,876,864 7,542,175
institutions
Operating fixed assets 14,751,252 6,193,878 17,386,508
Deferred tax assets 9,205,244 12,186,848 13,564,012
Other assets 34,588,444 41,116,582 40,567,215
Total assets 34,588,444 196,470,499 126,383,374
Liabilities

Bills payable 9,828,082 10,041,542 10,419,732

Borrowings 36,523,765 52,542,978 10,419,732

Deposits and other 597,090,545 682,750,079 10,419,732

accounts

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32
Sub ordinate loans 3,954,925 4,212,080 4,345,087

Liabilities against 25,633,411 29,862,144 30,425,071

subject to finance lease
Deferred tax liabilities 683,498,128 779,408,823 778,225,143

Other liabilities 10,964,123 11,525,221 11,986,543

Total liabilities 1,377,930,379 1,570,342,867 1,7,065,87420

Net Assets 66,308,587 84,369,798 84,224,704

Represented by

Share capital 7,590,000 9,108,000 9,507,001

Reserves 23,656,046 27,527,380 26,564,009

Inappropriate profit 31,933,178 38,498,335 35,037,921

Total equity 63,179,222 75,133,715 71,108,931

attributable to
shareholders of bank
Minority interest 890,099 1,143,241
---------
Surplus on revaluation 2,239,266 8,092,842
of assets ---------------
129,487,809 159,503,513 141,266,940

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3 Years summarized profit & loss statement of BOP
Years 2016 2017 2018

Description

Markup/return/interest 15,755,990 14,126,332 15,889, 70

earned

Less: Cost/return on 9,351,947 7,223,950 8,536,911

deposit etc.

6,404,043 6,902,382 7,352,159

Fee, commission & 901,444 906,955 907,981

brokerage

Net profit/loss from 2,924 211,795 215,998

investment securities

Dividend income 40,245 158,909 150,670

Other operating 852,238 819,861 811,004

income

(1,796,851) (2,097,520) (2,154,912)

8,200,894 8,999,902 7,282,900

Operating expenses

Administrative 7,112,651 7,180,113 7,980,512

expenses
Provision in value of 257,144 46,048 47,098
investment

Provision against non 601,791 --------

performing advances ---------

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 Other provisions 60,570 30,000 32,221

Bad debt written off 39,424 483,943 531,000

directly

7,469,789 8,341,903 6,656,876

731,105 657,999 665,871

Other income 479,434 663,796 556,923

Profit before taxation 1,210.539 1,321,795 1,323,543

Taxation 641,589 587,066 543,990

Profit after taxation 568,950 734,729 779,553

Inappropriate profit 1,136 1,161 1,172

brought forward

Profit available for 570,086 735,890 724,771

appropriation

REFERECES :
From Wikipedia : https://en.m.wikipedia.org/wiki/Bank_of_Punjab

The official website of bank of Punjab : https://www.bop.com.pk/bop

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