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Assignment
Arooj Fatima M14BBA069
Iram Shahzadi M14BBA065
Misha Rehman M14BBA059
Submitted By :
Submitted to : Prof. Riaz Ahmed Mian
3
ACKNOWLEDGEMENT
Every project big or small is successful largely due to the effort of a number of wonderful people who have always given their valuable advice or lent a helping hand. We sincerely appreciate the inspiration; support and guidance of all those people who have been instrumental in making this project complete.
At this juncture we feel deeply honored in expressing our sincere thanks to our former principal Mr. Khawaja Amjad Saeed who have been inspiration for us and great teacher Prof. Riaz Ahmed Mian for making the resources available at right time and providing valuable insights leading to the successful completion of our project.
We are the student of Hailey College of Banking and Finance, we are extremely grateful to Zarai Taraqiati Bank for the confidence bestowed in us and entrusting our project report.
Last but not the least we place a deep sense of gratitude to our family members and our friends who have been constant source of inspiration during the preparation of this project work.
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Contents
1. Introduction
History
Reasons to change ADBP to ZTBL
Mission
Vision
Objectives
Head office
Branches
Board of Directors
2. Infrastructure of ZTBL
(i) Board of Committees
Audit Committee
Human Resource Management (HRM) Committee
Risk Management Committee
Information Technology (IT) Committee
(ii) Management Committee
Assets Liabilities Management Committee
Executive Coordination Committee
Organizational Structure
Shareholding
ZTBL staff college
Vision
Mission
Functions
Approaches of Training
Subsidiary (KSSL)
Audit Department
(i) Pre Audit
(ii) Post Audit
5
Contents
3. Products & Services of ZTBL
(i) Treasury
Scope and objectives of treasury
Investments as per investment policy
(ii) Deposit schemes
(iii) Loan schemes
Types of loans
Production scheme
Supervised agriculture scheme
Zarkhaiz (one window scheme)
Sada Bahar scheme
Tea financing scheme
Crop Maximization project
Development loan scheme
Types of security
Payments period
Recovery procedure
Other schemes
(iv) Hajj Scheme
(v) Locker Facility
6
Contents
4. Analysis
(A) SWOT analysis
Strengths
Weaknesses
Opportunities
Threats
(B) PEST analysis
Political
Economic
Social
Technological
(C) Financial analysis
5. Annual Report
6. Findings and Recommendations
7. Conclusion
7
1. Introduction:
The Zarai Taraqiati Bank Limited (ZTBL) (formerly known as Agricultural Development
Bank of Pakistan) is the largest public sector financial development institution in Pakistan.
Authorized capital of ZTBL is Rs.25, 000,000,000/- divided into 2,500,000,000 ordinary shares
of Rs.10 each. Paid up capital of ZTBL are 12,522,440,670/-. The bank serves around half a
million clients annually and has over one million accumulated account holders and a wide
network of 32 Zonal Offices, 9 Audit Zones and 408 branches in Pakistan. The total number
of employees is 5,326, while 982 employees is provided by the KSSL. The ZTBL make
investment in some listed companies such as Nestle Milk pak Limited, Uqab Breeding Farm
Limited, Mubarik Dairies Limited & Dadabohy Agriculture Leasing Limited in order to generate
profit.
History:
Pakistan is basically an agricultural country, and finance has been needed for its rapid
development. With a view to meet this basic need the Agricultural Development Finance
Corporation was set-up in 1951, and was entrusted with the task of providing financial facilities
for the development of agriculture including:
Forestry
Fishery
Animal Husbandry
Poultry
8
Dairy Farming
Later on the Agricultural Development Bank of Pakistan was also established in
September 1957, under the Agricultural Development Bank Act. The Bank is to provide credit in
cash or in kind, warehousing and storage facilities to agriculturists, cooperative societies and
other bodies, of which the majority of members are agriculturists. As the functions of the
Agricultural Development Finance Corporation and Agricultural Development Bank were
similar and since both were working with
capital provided by the Government, they were merged into one organization known as
Agricultural Development Bank of Pakistan on February 18. 1961. The Agricultural
Development Bank of Pakistan is a banking company for the purpose of the Banking Companies
Ordinance and the State Bank of Pakistan Act. Zarai Taraqiati Bank Limited (ZTBL) erstwhile
Agricultural
DevelopmentBank of Pakistan (ADBP)is the premier financial institution geared towards thedev
elopment of agriculture sector through provision of financial services and technical knowhow.
The restructuring of former ADBP is being carried out with the aim:
To uplift the agriculture and rural sector by raising farm productivity.
Streamlining the institutional credit.
Increasing income generating capacity of the farming community.
ZTBL was incorporated as a Public Limited Company on 14th December, 2002through
repeal of ADB Ordinance of 1961.
The new corporate structure redefines the bank's status as a Public LimitedCompany
registered under Companies Ordinance'1984with an independent Board of Directors which aims
at ensuring good:
Governance,
Autonomy,
Delivering high quality
Reason to Change ADBP to ZTBL:
9
The restructuring of the former ADBP is being carried out with the aim to uplift the
agriculture and rural sector by raising farm productivity, streamlining the institutional credit and
increasing the income generating capacity of the farming community.
Mission:
To play effective role in the promotion of economic growth, by enhancing
theavailability of credit to the agriculture sector, through reliable access to sustainablefinancing,
special lending programs, technical assistance, and other products
& services,and to promote career development opportunities for increasing professionalism andte
chnical proficiencies of employees.
Vision:
Dedicated to serve the needs of the farming community, by delivering financial products
and technical services on a competitive and sustainable basis, in a convenient, efficient and
professional manner, leading to success of the Bank and the farmers.
Objectives:
Develop and operate as a financially and operationally sustainable R.F.I of the country.
Assist rural community, particularly the small farmers, in raising their productivity and
income levels through timely delivery of credit, advisory and ancillary services.
Build ZTBL's image as a proactive, client friendly, financially & operationally
sustainable with indigenous product deployment.
Establish and provide backward and forward linkages to strengthen agri. value added
commodity chains.
Engage in public - private and wholesale - retail partnership to deepen outreach and
reduce operating cost.
To function as a rural commercial bank to mobilize rural capital formation and to
commercialize the agri. sector by delivering the true value of credit to the client. Provide
a wide range of risk insurance products to its clients.
10
Open up its venues of operation to Domestic & International Banking Industry to avail
comparative advantages.
Head Office:
Head office of ZTBL is located at Islamabad.
11
Board of Directors:
Mr. Mehboob Hussain (Seceratory)Mr. Asif Sharif
(Director)
Mr. Saeed Ahmed Director)
Mr. Abdul Bari (Director)
Mr. Majyd Aziz (Director)
Mr. Mohsin Aziz (Director)
Mr. Asif Sharif (Director)
13
2. Infrastructure of ZTBL:
The overall management, functions, meetings of the ZTBL is control by two committees
known as “Board & Management Committees”. The sub-committees of these two committees
are explaining as under;
(i) Board Committees:
Audit Committee:
This committee has one chairman, four members that are the directors of the ZTBL and one
secretary from the Audit Department. The designation of secretary is the “Chief Internal
Auditor” of Audit Department.
Human Resource Management (HRM) Committee:
This committee has one chairman & president of the ZTBL, four members that are the directors
of the ZTBL and one secretary from the HRM Department. The designation of secretary is the
“Head” of the HRM Department.
Risk Management Committee:
This committee has one chairman & three members that are the directors of the ZTBL. But one
member designation is the risk manager. But in risk management committee, the company
secretary act as member and secretary as well.
Information Technology (IT) Committee:
This committee has one convener & two members that are the directors of the ZTBL. One
member is from IT Department & his designation is the Chief information officer. While one
secretary (Head) of IT Department.
14
(ii) Management Committees:
Assets Liabilities Management Committees:
This committee has one convener (CEO) & three members. The designation of the first member
is the SEVP of Operation Department. The designation of the second member is the risk manger.
But the third member (Chief Financial Officer) acts as member and secretary as well.
Executive Coordination Committee:
This committee has one
convener (CEO), one secretary (Compliance Officer) & three members. Thedesignation of the
first member is the SEVP. The designation of the second member is the EVP. The designation of
third member is the risk manger.
Organization Structure of ZTBL:
The general direction and superintendence of the affairs of the bank are entrusted to a 12
members Board of Directors consisting of a chairman appointed by the Federal Government, the
Federal Government officers from the Ministries of Finance and Food and Agriculture. There are
four officers of the four Provincial Governments and one non official nominated by each
province. One member on this board represents the State Bank of Pakistan also. In ZTBL, the
president supervises and directs the senior executive who supervises and directs the senior vice
president, and senior vice president control voice president, who control Assistant vice president,
who finally supervise officers. The management hierarchy of bank is as follows;
Board of Directors
15
Shareholding of Zarai Taraqiati Bank Limited (as on 31.12.2012)
SR. NO. NAMES OF SHARE HOLDERS NO. OF SHARES AMOUNT (Rs).
01 Government of Pakistan 1,251,189,067 12,511,890,670
02 Government of Punjab 292,340 2,923,400
03 Government of Sindh 125,545 1,255,450
04 Government of KPK 71,740 717,400
05 Government of Balochistan 37,875 378,750
06 Government of Erstwhile East Pakistan 527,500 5,275,000
Total:- 1,252,244,067 12,522,440,670
President
Committees of ZTBL
Management Committees
Board Committees
Executive Coordination Committee
Assets Liabilities
ManagementCommittee
Audit Committee
HRM Committee
Risk Management
Committee
Information Technology Committee
16
ZTBL Staff College:
Vision
Develop core and general competencies at different tiers of management, improve the
training infra-structure and develop the Staff College as Model Banking Training Institute of the
country.
Objectives
(i) To unleash the hidden potential of the employees.
(ii) To identify and build right set of competencies in employees to optimize their
performance
(iii) To provide equal learning and development opportunities to employees across the
bank by enhancing their understanding of new Financial & Commercial products,
regulatory requirements and technological innovations for achieving future organizational
goals.
Functions
(i) Identify, develop and impart best possible training & development innovative solutions.
(ii) Assess training & development needs of all employees in the Organization.
(iii) Ensure that the Bank possess trainers who are adequately trained to design,
deliver in accordance with the training & development programs.
(iv)Establish an environment for trainees conducive to learning.
(v) Liaise with all major training agencies, trainers & vendors to the Bank’s advantage.
(vi)Overall responsibility of implementation of HR policies and programs in areas of
training, development and career planning.
(vii) Obtain feedback on various HR policies, procedures and programs to recommend
improvements.
(viii) Evaluate, propose nominations for overseas training programs through
International Banking Institutes.
(ix)Plan, arrange and conduct induction courses for new inductees, at all levels.
17
(x) Arrange internships for students of HEC recognized Universities, in the field and at Head
Office.
(xi)Process and finalize Employees Education requests to encourage the Employee’s to
improve their academic / professional qualification not only for their career growth but
also to prepare the Human Resource of the bank to meet the future challenges on self
sustainable basis
Approaches of Training:
(i) Overview of subject presented by the Speaker/ Resource Person
(ii) Group discussions
(iii) Multimedia
(iv)Computer Lab Practices
(v) Case Studies
Subsidiary (KSSL):
The ZTBL has one subsidiary which is known as the “Kissan Support Services Limited”.
It was incorporated as owned subsidiary of the ZTBL thatfunction independently effective from
1st January 2006. The KSSL is a separate and distinct legal entity that is controlled by the ZTBL.
The KSSL has an authorized capital of Rs.100 million. Its aim is to provide a support to the
management of the ZTBL such as to focus on core banking business and assign non-core
activities. The KSSL operates under the Memorandum and Article of Association.
Services:
Kissan Support Services Limited provides the following services to the Bank:
Sports:
ZTBL has been involved in different games activities and tournaments at national level.
Being its noncore activity, the Bank handed over this responsibility to KSSL. To carry out
sports activities, KSSL has developed sports department whose duty is to arrange
18
participation of ZTBL teams of cricket (men & women), Shooting Ball, Squash (Men &
women), Football, Tennis (men & women) and Golf at national level tournaments organized
by PCB and different Sports Federations of Pakistan.
KSSL sports department also arranges Inter Regional/Inter Department competitions to
promote sports and recreational activities for Bank employees. Training camps are also
arranged for the players in order to keep them fit, physically as well as mentally.
Security Services:
Providing security services to ZTBL is a non core activity of the Bank which is given to
KSSL. To execute this responsibility, KSSL has its Security Department whose responsibility is
to undertake security measures for the protection of ZTBL’s assets, employees and material. This
department also maintains effective liaison system with Zonal Offices, Staff, Customers,
Government & Intelligence Agencies, and other Regulatory Bodies. Physical monitoring by
patrolling and check system, CCTV link up system, and control room system are also developed
by the Security Department of KSSL in order to provide full proof security to the Bank.
Provision of man power:
Providing security services to ZTBL is a non core activity of the Bank which is given to
KSSL. To execute this responsibility, KSSL has its Security Department whose responsibility is
to undertake security measures for the protection of ZTBL’s assets, employees and material. This
department also maintains effective liaison system with Zonal Offices, Staff, Customers,
Government & Intelligence Agencies, and other Regulatory Bodies. Physical monitoring by
patrolling and check system, CCTV link up system, and control room system are also developed
by the Security Department of KSSL in order to provide full proof security to the Bank.
Administrative Services:
Some of the administrative services were also handed over to KSSL by the Bank as its
noncore activities. These services include:
Provision of Janitorial Services to ZTBL building.
Photocopying services.
19
Provision of uniforms/liveries to Naib Qasids and Drivers.
Maintenance of security equipments.
Taking care of no profit no loss bases café for ZTBL and KSSL employees.
Sr. NO.
Categories of Employees Provided by KSSL
No. of Employees
01 Darban and armed Guards 526
02 Drivers 291
03 Naib Qasids 25
04 Mali 25
05 Typists, Assistants and senior assistants. 41
06 Security supervisors 03
07 Sweepers 07
08 Players 20
09 Others 15
Total 982
20
Audit Department:
(i) Pre Audit:
Ensure availability of sanction of the Competent Authority.
Ensure all government, regulatory and statutory requirements are being fulfilled.
Ensure all BOD decisions are being followed while making payments.
Ensure Competence vis-à-vis Financial Power of Approving Authority.
Check Budget availability of the concerned GL Head.
Check completeness of documentation and verification of arithmetic accuracy.
Check Procedural Compliance.
Perform any other assignment as & when assigned.
(ii) Post Audit:
Review compliance with all the policies and procedures in place.
To know all the relevant instruction applicable on KSSL.
Report results and make recommendations to the management whenever necessary.
Follow up on the process of implementation of the recommendations.
Ensure that all internal control procedures are effectively enforced.
Ensure proper vouching/book keeping is maintained. Ensure booking of transactions in
proper GL Heads and availability of supporting documents.
Ensure that the payments are made as sanctioned by the Competent Authority and pre-
audited.
21
3. Products and Services of ZTBL:
(i) Treasury:
The Treasury Division of ZTBL was formally established on May 08, 2012 after the
approval of Board of Directors (BOD). To run treasury operations on professional grounds, BOD
also approved Treasury Investment Policy, Treasury Manual, and Contingency Plan and
Brokerage lines. It has been ensured that Treasury Division (TD) will strictly work under
approved policies and guidelines for BOD and will operate within pre-specified line and limits. It
22
is responsibility of each member of treasury division to ensure compliance of terms and
conditions laid down in this policy documents according to his/her role and as defined in
Treasury Manual and their specific job description. All funds available to TD will be utilized
optimally, timely and in a professional manner. Any exception may be granted based on its
rationale and justification and prior approval from ALCO.
The objectives of the above policy documents are to define the minimum standards and
controls that need to be complied to cover risks while placing, investing or borrowing funds.
These risks relate to interest rate risk, market risk, exposure risk, and liquidity and delivery risks.
Therefore, it is an area where significant control and review measures need to be adopted by
concerned departments/division specifically and by ALCO in general.
Scope & Objectives of Treasury Division :
The Scope and objectives of Treasury Division covers all the Treasury & Investment
related activities within ZTBL; whereas the main objectives are as under:
(i) To maintain sufficient liquidity for the bank to honor its commitments as they fall due.
(ii) To maximize overall return on managed assets.
(iii) To manage liquidity, utilizing excess funds efficiently and arrange/borrow in case
of anticipated shortfall
(iv)To keep ZTBLs funding cost as low as possible.
(v) ZTBLs ability to withstand immediate liquidity shocks or longer term liquidity
management problems depend on its capacity to make rapid decisions using factual data
and take timely actions to bridge the funding gap.
(vi)To establish appropriate early warning signals that will help in identification of the
liquidity problems.
(vii) To maintain liquidity in accordance with regulatory requirements.
23
Investments as per investment policy:
(i) Government Securities which includes Treasury Bills (T-bills), Pakistan Investment
Bonds (PIB) and GoP Ijara Sukuk.
(ii) TDRs
(iii) Certificate of Investments
(iv)To keep ZTBL's funding cost as low as possible.
(v) Certificate of Musharika/Modaraba
(vi)Term Finance Certificates (TFCs)
(vii) Corporate Sukuk
(viii) Mutual Funds Investments
(ix)Equity Investment
(x) Money market activities, Reverse Repo/ Repo/Clean/Call etc
(ii) Deposit Schemes:
Current Account
PSL- saving Account
Business Deposit Account (Special Account A/C)
Rozana Bachat Account (Special Account A/C)
Basic Banking Account
PSL- Term Deposit
Zarai Munafa Term Deposit Certificate (ZMTDC)
MINFA Revolving Fund Deposit A/C (MRFDA)
MINFA Special Saving Deposit A/C (MSSDA)
24
Types of Deposits Rate of Return Terms & Conditions
CURRENT A/C NIL
1. Initial deposit is Rs.200/-
2. Un-remunerative charges @
Rs.50/- pm shall be deducted on half
yearly basis.
3. Non Remunerative Account.
4. No limit of transactions.
PLS-SAVING A/C (Regular Saving
A/c)7% pa
1. No initial deposit.
2. Max. 8 debit transactions during
the month are allowed for
calculation of profit.
3. Profit shall be calculated on the
basis of average balance during the
month.
4. Profit shall be credited to a/c on
half yearly basis.
BUSINESS DEPOSIT A/C (Special
deposit A/C)
7% pa
1. Initial deposit is Rs.10,000/-
2. Profit shall be calculated on the
basis of daily product.
3. No limit of withdrawals.
4. Profit shall be credited into
account on half yearly basis.
ROZANABACHAT A/C (Special
deposit A/C)
7% to 8% pa (slabs from
Rs.10000/- to Rs.10 million )
25
BASIC BANKING A/CNIL
1. Min. initial balance is Rs.1000/-
2. It is non-remunerative a/c.
3. Max. two deposit & two chequing
withdrawals during a month are
free of charge
4. If balance remains NIL, for
continuous period of 6 Month such
account will be closed.
PLS-TERM DEPOSIT ( slab rates
per circular )
7% TO 8% (terms 3 months to 60
months & above)
1. Min. initial balance is Rs.1000/-.
2. Minimum holding is 3 months.
3. PLS saving a/c rate shall be
applied in case of premature
encashment & after maturity.
4. Request of roll over shall be made
in sufficient time before its maturity
otherwise it will be transferred to
TDR Matured a/c
ZARAI MUNAFA TERM
DEPOSIT CERTIFICATE
(ZMTDC)
8%
1. Initial deposit if 0.100 million.
2. Scheme is restricted for Bank
employees & their relatives.
3. Profit shall be paid at maturity.
4. Premature encashment OR after
maturity PLS-Saving a/c rate shall
be applied.
5. Deposit of this scheme shall not
fall into the ambit of ROs
performances.
1. Short term deposit scheme for a
fixed period of 3 and 6 months.
2. Min. deposit is Rs.50,000/-.
26
MUSTAQBIL MEHFOOZ A/C 8% 3. In case of premature encashment
OR after maturity PLS-saving a/c
rate shall be applied.
ZARAI TERM DEPOSIT
CERTIFICATE (ZTDC)
7.60 % pa(Irrespective of
premature period)
1. Minimum deposit is Rs.25,000/-
2. Scheme is for a fixed period of 3
years.
3. Minimum holding is 3 months
4. If depositor maintains
Rs.2,00,000/- , he will be eligible to
get agri. Loan from ZTBL without
any appraisal fee.
MINFA REVOLVING FUND
DEPOSIT A/C. (MRFDA) 7.5% pa
1. Minimum deposit is Rs.500/-
2. Introduced for village
organizations only.
MINFA SPECIAL SAVING
DEPOSIT A/C (MSSDA) 7.5% pa
1. Minimum deposit is Rs.500/-
2. Introduced for village
organizations only.
(iii) Loan Schemes:
Zarai Taraqiati Bank Limited (ZTBL) is a specialized bank providing
agricultural credit in rural areas of the country. Pakistan is an agricultural country and near about
60% of its population is working directly or indirectly related to agriculture industry.
But instead of being an agricultural country Pakistan is still not gaining benefits from this
sector which it can gain. Some time we even does not able to fulfill our food requirement and
sometime we have bumper crop but does not have facilities to store them properly, in this way
we are wasting our resources. To gain benefit from agriculture sector it is required to be
modernized to increase the per acre production and also to build ware houses to store. The
27
main hindrance in the modernization
of agriculture is the unavailability of finance. The other financial institutions feel reluctant in
giving finance to farmers due to high level of risk in the production of this field. To facilitate
farmers and to help in modernization of agriculture sector the government has established
this bank which is contributing its part in achieving government objective from many decades.
ZTBL is offering a blend of products to fulfill the need of different types of customers.
Types of Loans
1. Short Term Loans:
Short term loans are loans for shorter period of less than a year. It includes, crop producti
on working capital loans recoverable in lump sum commencing after theharvest/marketing of
respective crops and within maximum period of 12 months.
2. Medium Term Loans:
Medium term loans are for a period of more than a year but less than 5 years. In includes,
dairy farming and livestock etc. The installments of these loans are usually paid able in quarterly
or half yearly basis.
3. Long Term Loans:
Long term loans are for a period of more than 5 years. These are development loans which
require large amount and also need some time to show its result in the shape of better production.
It includes loans for tractor, agricultural machinery, poultry farming, go downs and orchard in
yearly/half yearly installments within maximum period of 8 years.
Production Scheme:
28
The examples of production loan items are given below:
1. Seeds, fertilizers and fuel
2. 2.Pesticides, insecticides and herbicides manual sprayers
3. Poultry feed, chicks and medicines
4. Hire charges of farm power
5. Water charges and electric charges for tube well
6. Production loan for growth of mushroom
7. Hired labor, water rates & fuel wood for tobacco curing.
Supervised agriculture scheme:
Under this scheme agriculture loans are given for short, medium and long term loans up
to Rs. 1.00 million per borrower/per case.
29
The loans are sanctioned for In Fats, livestock, orchard, tractor, agricultural machinery, tube
well and irrigation facilities etc. under the scheme besides provision of credit, information are
provided to the farmers for planning the farm, production, guidance for implementation of the
scheme, marketing and repayment of loans.
Zarkhaiz (one window operation):
For timely and conveniently provision of credit to purchase inputs,loans are provided to t
he borrowers under One Window Operationbeing conducted twice a week during Rabi and Khari
f seasons.Applications processed on the same day whereas sanction payments are made within
three days at Branch. For Rabi Crops one window operation from October to January and for
Kharif Crops from April to September each year which is extendable as per requirement of
popular area.
Sada Bahar scheme:
For providing timely input loans for crops and working capital forpoultry and fishery etc, the
Bank has launched a Sada Bahar Scheme. Assessment for inputs requirements for the whole year
is made at the time of first application. The amount so assessed is treated as Revolving Limit
provided it is within the security limit. The Managers are authorized to sanction such loan limits
up to Rs.O.500 million. Scheme’s main features are as under:
• Revolving Credit Limit is fixed to cater production credit andancillary requirements of the
farmers during one year period.
• The documentation once completed remains applicable for three
years with yearly cleanup/renewal without any further documents.
• The borrowers can draw the credit in lump sum or in installments according to his requirement.
• Like-wise he can repay in lump sum or in installments during the year when his cash position
allows him.
• Pass Book containing transactions in his SBS Account is supplied to every borrower free of
cost.
30
Tea financing scheme:
In order to increase the tea cultivation in District Mansehra, Swat,Mutta, Shangla par and Dir in
Malak and Division, tea financing
schemehas been introduced which would not only save the hard earnedforeign exchange but wou
ld also help improve the socio-economiccondition of the inhabitants of the area. The salient
futures of the scheme are given as under:
• Maximum Credit Ceiling of Rs.60, 000/- per acre has been fixed.
• Farmers owing land up to five acres are eligible to avail loans.
• Credit will be given in 3 installments: first year Rs.30,
000/-,2nd year Rs.15,000/- 3rd year Rs.15,000/- provided thedisbursed loan is used properly.
• The credit would be repayable within 1 year with 6 years
grace period with prescribed markup of 9% per annum.Rebate of 1 % will be allowed in mark-
up on timely repayment and proper utilization of the loan.
Crop maximization project:
Ministry of Food, Agriculture and Livestock (MINF AL), Government of Pakistan had
launched Crop Maximization Project in 109 villages in
various districts throughout the country to increase the productivity/yield of crops. Under the
project MINFAL had to provide funds of Rs, 299.893 million to ZTBL for disbursing loans to
the project farmers for purchase of inputs. Initially funds of Rs.468 Million had been received by
the Bank for the purpose. These funds were to be revolved for meeting input credit needs in the
project village’s till 30th June, 2014 after which Bank had to return the principal amount to
MINFAL. Accordingly Credit needs of the project farmers are being met by respective ZTBL
branches through Village Organizations formed for the purpose. Duly the currency of the project
Bank is authorized to charge 4% per annum mark-up on loans to project growers to meet its
operational cost, however in case of default Bank’s normal rate of return i.e. 9% p will
be applicable.
31
Development Loan Scheme:
The loans for purchase of items like farm machinery, tractors, irrigation, land development,
orchard, green houses, dairy, poultry, fishery, livestock, farming…..etc are recoverable up to one
to eight years.
32
Per Acre Credit Limits
Major Crops
Wheat 16,000
Paddy (Rice) 19,000
Sugar Cane 30,000
Cotton 21,000
Maize 20,000
Minor Crops
Overall Credit Limit per Borrower Rs. 1.000 Million
Sada Bahar Scheme Rs. 0.500 Million
33
Potato 36,000 Bajra 11,000
Tobacco 29,000 Jawar 11,000
Mustard Mug 11,000 Gram 12,000
Tomato 19,000 Guar 3,000
Mash 3,000 Caster Oil 6,000
Lentil 11,000 Barley 9,000
Groundnut 14,000 Berceme 49,00
Sunflower 15000 Janter 4,000
Soya Bean 12,000 Garlic 26,000
Canola 13,000 Turmeric 25,000
Rape Seed 11,000 Ginger 30,000
Till (sesame) 12,500 Lacern & Shaftal 45,00
Sugar Beet 12,000
Types of Security
Immovable Property
Agricultural Land
• Under Pass Book System 80%
• Outside Pass Book System 70%
• Under Alienability Certificate 66%
• Commercial/Industrial Land under Pass Book 80%
Outside Passbook System
• Urban Residential/Commercial Plots in all localities outside Pass Book 75%
• Alienability Certificate 66%
34
• Residential/Commercial Buildings 70%
• Lease holds rights of a leased land of CDA/KDA with 99 years lease70%
Moveable Property and Guarantees
1. Unconditional Bank guarantee from scheduled Banks
Up to maximum amount of an un-conditional Bank guarantee after keeping sufficient margin for
un-paid mark-up, cost, charges and expenses.
2. Guarantee issued by Central or Provincial Government
Full amount of loan and other charges are guaranteed.
3. Government securities
85% of face value or market values whichever is less.
4. Defense Savings & FEB Certificates
75% of value of certificates presented as security.
5. Fix Term Deposits Recipients
85% of face value of deposits receipts.
6. NIT Units
80% of the face value or market values whichever is less.
7. Life Insurance policies
85% of surrender value
8. Pledge of Potatoes/Seed Potatoes price or market value whichever is less
Up to 75% of Govt. support.
Personal Surety
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Against a bond with two sureties under General Credit and one surety in
Special Schemes up to Rs.25,000/- or Up to 50% of appraised value of properties of sureties
Repayments Period
Sr. No. Types of Loans Recovery Period
1. Short term loansCrop production working capital loans recoverable lump sum commencing after the harvest/marketing of respective crops and within maximum period of 12 months.
2. Medium term loans Dairy farming and livestock etc. In yearly/ half yearly/monthly installments and within a period of 5years.
3. Long term loans Tractor, agricultural machinery, poultry farming go downs and orchards in yearly/ half yearly installments within maximum period of 8 years and above.
Recovery Procedure
a) Recovery Schedule
• Recovery schedule in each loan case as per terms of sanction
of loan is fixed and communicated to the borrowers afterdisbursement of loan.
• In case of default or failure in repayment of any installment ondue date the mark-
up shall continue to be charged and lastinstallment due to this may differ from the amount of inst
allments fixed at the time of disbursement.
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b) Issuance of Notices
• Demand notice is issued before the due date of every installment.
• A Legal Notice is issued one month after the due date informing the borrower that if the
amount is not repaid within next one month, further legal action will be taken to recover the
dues.
c) Legal Action
• Legal action can be initiated against the defaulter if loan is not repaid even after expiry of
legal Notice period.
• Where the court in bank's favor has decreed a case, account isto be settled by recovery of
amount from the auction of them or tagged property.
• The bank may purchase the mortgaged property if
consideredfeasible to dispose it off later on through auction or in any manner deemed fit for
getting the best price.
• The bank may dispose of the mortgaged properties of defaulters for satisfaction of its dues
without intervention of courts
underFinancial Institutions (Recovery of Finances) Ordinance2001.Rescheduling of Loan
Repayment Facility.
d) Rescheduling of Loan Repayment Facility
• ZTBL allows rescheduling of repayment of installments to itsborrowers in order to maintain
credit discipline and to
mitigatetheir genuine problems in real hardship cases and in areasdeclared as calamity hit by the
respective ProvincialGovernments
• The Rescheduling facility is to be considered by bank on case to-case basis and is to be allowed
on borrower's request only.
• The relaxation in recovery period shall not be allowed beyond one year in any case.
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• The borrowers shall have to execute a supplementary loanagreement on Non Judicial
• Stamp Paper of appropriate value to give legal cover to extended period.
• The borrowers shall have to pay the return for the extended period.
e) Down Payment for Rescheduling of Loans
Rescheduling Number
Rate of down payment as against due
installments to the rescheduled
1st 10%
2nd 20%
3rd 30%
Other Schemes:
(iv) Hajj Applications:
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(v) Locker Facility:
Zarai Taraqiati Bank Ltd. apart from its core functional activity marked with country
based agri-business, has started to serve its valued customers by offering lockers facility.
Initially, this facility is being offered at following 12 branches:
S.No Name of Branch Phone No. Address
1 H.O Branch Islamabad 051-9252782 Head Office Building, 1 Faisal Avenue Zero Point Islamabad
2 Islamabad Branch 051-9252022 Block-7/F, ZTBL Officer Colony G-7/2, Islamabad
3 Lahore Branch 042-7353380 47-C, Sharah-e-Quaid-e-Azam, Lahore
4 Peshawar Branch 091-2262279 Chughalpura, GT Road Reshawar
5 Gujranwala Branch 055-9200206 D.C Road, Gujranwala
6 Faisalabad Branch 041-9210008 Opposite Punjab Medical College, Faisalabad
7 Multan Branch 061-9200509 61-A Abdali Road, Multan
8 Sahiwal Branch 040-9200424 915-D Block Farid Town Sahiwal
9 Sargodha Branch 048-9230491 Katchery Road, Sargodha
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10 Khan Pur Katora Branch 068-5573079 Model Town- Near Paradise Cinema Khan Pur Katora (RYK)
11 Shafi Court Branch 021-99206006 Shafi Court Building Mere weather Road Karachi South
12 Main Branch Gulshan-e-Johar
021-34613618 St 4/3-A Block No.1 KDA Scheme-36 Gulistan- e -Jauhar Karachi
Following are the approved rates for rent of lockers and key deposits against which lockers will be allocated:
Type Specification Rent Per AnnumRent after one month from due date
Key Deposit
Small 6-1/2"x4-1/2"x23" Rs.1,200/- Rs.1,500/- Rs. 5,000/-
Medium 13-1/2"x4-1/2"x23"
Rs.1,800/- Rs.2,250/- Rs. 10,000/-
Large 13-1/2"x8-1/2"x23"
Rs.2,500/- Rs.3,125/- Rs. 15,000/-
Break Opening charges is Rs. 1500/- or Actual which-ever is higher
4. Analysis
Introduction:
The analysis is a tool, which is used for checking the overall performance of any organization. It
is not only used on national level but also on international level for the purpose of checking
internal and external factors that influence the organization, positively or negatively and leads
the organization towards failure to success.
InternalThreats
Helpful
External Threats
Harmful
Strengths
Opportunities
Weaknesses
Threats
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There are various analyses, such as the SWOT and PEST.
(A) SWOT Analysis:
The word “SWOT” is abbreviated to strengths, weakness, opportunities and threats while
analysis is a tool, which is used for checking the overall performance of any organization. The
SWOT analysis is strategic tool used to evaluate the overall organization’s strengths, weakness,
opportunities & threats and involves specifying the objective of the organization and identifying
the internal and external factors that are favorable and unfavorable to achieve that objective.
The SWOT analysis is designed to lead an organization from failure to success. Finally,
we do the strength & opportunities because it is helpful while we avoid the weaknesses and
threats which are harmful for organization, which is shown in below figure.
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1. Strengths:
Strengths are the attributes of the organization which are helpful in achieving the objective.
In other words, strengths mean, the activities that an organization does well favorable chances or
positive factors in the internal environment due to which organization achieve the objective. The
strengths of the ZTBL are given as under;
(i) Strong Supervision and Management:
The supervision and management of the ZTBL is very strong such as step by step, effective
and efficient that leads the bank toward failure to success.
(ii) Provide many Facilities for Employees:
ZTBL provides the facility of health, safety and employee relations & training for the
purpose of maintaining the employees.
(iii) Employee’s Traits:
All staff members are well mannered in attitude, communications & following the ethics.
(iv) Risk Management:
The risk management of the ZTBL is still in the process of restructuring and efforts have
been put in place to adequately equip the risk management function with credit review, credit
risk rating and value at risk models. Pakistan is an agriculture country with major portion of its
economy dependent on agricultural sector. ZTBL recognizes this responsibility and thus also
caters to agriculture sector which promises high returns.
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(v) Expansion of ZTBL:
The ZTBL is expanding day by day because customer accepts it. Its network expanded to 406
branches and 32 zonal offices in the Pakistan, which will attract large number of customers.
(vi) The Elevator and Cameras Systems:
In the age of globalization, the elevator makes it possible to save time. While the cameras in
ZTBL, make the employees to stress on their work which is assigned or given.
2. Weakness:
The attributes of the organization which are harmful in achieving the objective are
calledweaknesses. In other words, weakness means, the activities that anorganization lakes or un
favorable chances or negative factors in the internalenvironment due to which organization do
not achieve the objective. The weakness of the ZTBL is given as under;
(i) Understaffing:
The total number of employees is 5,326 in the ZTBL Head office. In age of technology
and globalization, the understaffing may cause unnecessary work burden on employees
decreasing their efficiency.
(ii) Lack of Refreshment Courses:
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Although the ZTBL has its own Training and Development Canter
but it needs to give refreshment courses to its employees more frequently so that they can
explore new dimensions and conquer worlds.
(iii) Seniority Based Promotion:
Promotion in the ZTBL is purely on seniority basis rather than on performance. This really
de-motivates the employees because they know that it doesn’t matter whether they perform well
or bad.
(iv) Lake of Job Rotation:
Most of the employees work in a particular department and they specialize only in one
department. In case of absence of one employee, any other employee cannot perform this work.
In this way bank not only loses the business but also results in dissatisfaction of the customer.
(v) Shortage of skillful Labor:
The shortage of skillful labor or manpower leads the organization from success to failure.
Because in the ZTBL, there are many contract and temporary based employees that has lake of
managerial& financial skills.
(vi) Lake of Qualification:
The employees working on the same position may have different degrees like B.Sc., B.A.…
etc which devaluate the students of MBA, BBA, and other well qualified staff.
So there is a lack of professional
staff in different departments and lack of theoretical knowledge of the employees as well.
(vii) The Rate of Absenteeism and Turnover:
The absenteeism & turnover rate is too high that it results the conflicts in the organization.
3. Opportunities:
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The attributes of the organization which are helpful in achieving the objective are called
opportunities. In other words, opportunities means, the activities that an
organization does well or favorable chances or positive factors in the external environment
due to which organization achieve the objective. The opportunities of the ZTBL are given as
under;
(i) Proper Utilization of Recourses:
The Organization is made up three types of recourses, such as human, physical &
financial resources which come from external environment. However, in the age of globalization
for achieving growth, the competent, skillful and the English speaking employees are one of the
requirements of the organization.
(ii) Increasing Extensive Advertisements:
The ZTBL can increase the extensive advertisements of new products, services,
vacancies, in order to increase customers & heir competent employees from external
environment.
(iii) Mobile Credit:
The ZTBL can start mobile credit which is the best way to effectively utilize its present
resources to gain a competitive edge.
(iv) Increasing the Amount of Loans and Capital:
The ZTBL increases the amount of loan for their customers, which is five lacks, in order to
attract the large number of customers. The ZTBL issue a large amount of capital to agriculture
sector, in order to, utilize its resources more efficiently and to earn more profit.
(v) Creating Public Relations:
The ZTBL also, involves in creating public relations that will increase the image and
profitability of the bank. Often, public relations are conducted through the media that is,
newspapers, television, magazines, internet….etc that’s attract a large number of customers.
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4. Threats:
The attributes of the organization which are harmful in achieving the objective are called
threats. In other words, threats means, the activities that an organization lakes or negative factors
in the external environment due to which organization do not achieve the objective. The threats
of the ZTBL are given as under;
(i) Avoid Discrimination:
The ZTBL can avoid discrimination because it is harmful for the bank in achieving its
objective. The bank can hire the employees from external environment. The right person is for
right for job will leads the organization towards failure to success.
(ii) Avoid Illegal Activities:
The employees of the ZTBL can avoid the illegal activities in external environment that
will reduce the reputation and image of the ZTBL.
(iii) Internet Banking:
It is the main problem that was found to be a lack of trust in the new banking channel by
customer. However, effective complaint management
can increase customer’s loyalty and trust in Internet Banking.
However, “Crises Management Plan” has been developed which is under review by the
senior management. The objective of this plan is to have clear guidelines and communication in
the event of any crises occurrence, which may threaten the safety of its staff, the security of its
assets, the continuity of its operation and the reputation of the ZTBL.
PEST Analysis:
1. Political analysis:
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Despite all international and public perceptions today, Pakistan is a functioning
democracy and gradually there is a change in complexion and composition legislatures
with more educated people and women entering into politics. Similarly it helps in
developing best strategies to implement that can support the revival of bank industry.
Like in the era of nationalization bank had to suffer as other industry that is why the
impact is still found in the performance of this industry.
2. Economic analysis:
Although banking sector development is important at early stages of economic growth,
general liberalization presuming a homogeneous bank role may not necessarily promote
growth. The estimated cost structure indicated that state-owned commercial banks are
large enough, while development financial institutions and private banks can expect to
obtain cost saving advantages by expending their operations. Since scope economies are
significant, portfolio diversification generally increases bank profit. In addition, private
bank are the most efficient, followed by foreign and private banks. Public banks are the
least efficient.
3. Social analysis:
Banks have always been helpful for the people in improvement of living condition of
poor people in various forms like giving loans for starting business or directly providing them
the instruments that could enhance their living conditions. Similarly ZTBL always tried to
provide loans to the needy people on soft terms and also helped to eradicate unemployment by
providing job opportunities.
4. Technological analysis:
There is inadequate communication infrastructure.
Smaller and lowest computer facilities.
Inadequate IT training.
There must be an efficient IT department.
(C) Financial analysis:
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Financial Analysis is the most important analysis which is conducted to check the
financial position of any organization. The brief financial analysis of Zarai Taraqiati Bank
limited.
Zarai Taraqiati Bank Unconsolidated Condensed Interm Statement Financial
Position as at 31 March 2014.
Un-Audited
31st March 2014
Audited
31st March 2013
Total Assets 142,615,634 148,448,277
Total Liabilities 109,435,609 115,965,018
Net Assets 33,180,025 32,483,259
Zarai Taraqiati Bank Unconsolidated Condensed Interm Profit and Loss Account for Three Months Period Ended 31st March 2014
March 31st 2014 March 31st 2013
Total Profit 265,083 269,833
Zarai Taraqiati Bank Unconsolidated Condensed Interm Statement of Comprehensive Income for Three Months Period Ended 31st
March 2014
Quarter Ended
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March 31st 2014 March 31st 2013
Total Comprehensive Income 696,766 511,178
Zarai Taraqiati Bank Unconsolidated Condensed Interm Cash Flow Statement for Three Months Period Ended 31st March 2014
March 31st 2014 March 31st 2013
Cash Flow from Operating Activities (6,971,265) (1,701,444)
Cash Flow from Investing Activities 1,782,548 (5,553,041)
Cash Flow from Financing Activities 7,553,037 5,270,582
6. FINDINGS & RECOMENDTIONS
A single visit of a single branch of an organization can never provide all the information
about that organization. So we have found only some of the problems which have been pointed
out. We have also recommended some possible solutions of these problems. The finding and
recommendation for ZTBL are given as under;
Findings:
Quarter Ended
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I. The employees working on the same position may have different degrees like B.Sc., B.A.…
etc which devaluate the students of MBA, BBA, and other highly qualified staff. So there is a
lack of professional staff in different departments.
II. There is no job rotation for employees which create job burning.
III. The officers of RRD face many problems during preparing different financial reports which
consume lot of time.
IV. The employees are not satisfied with the compensation package; they are just getting
experience and want to shift to another organization that has strong position in the agriculture
finance market.
V. The availability of staff training makes employees aware of work and is know done by the
ZTB Staff College which is provided by the KSSL.
VI. The absenteeism & turnover rate of the employees is too high that’s results the
misunderstanding and conflicts in the bank.
VII. In the ZTBL, there is problem is understaffing of employees. The total number of
employees is 5,326 in the ZTBL Head Office. In age of technology and globalization, the
understaffing may cause unnecessary work burden on employees decreasing their efficiency.
CONSLUSION:
During our assignment on ZTBL, we found that ZTBL has high level of professionalism
and challenging environment and its culture is friendly. ZTBL seems Top Agriculture Financing
in the future as indicated by the financial indicators. It keeps energy and potential to serve the
deserving clients in all over the world. The bank has set itself a vision to be a world-class bank.
This can only be achieved with dedication and a passion to excel in every activity. The
bank is really working well and contributing a valuable part in the economy of Pakistan through
tax, giving loan to government, giving loans to the businesses for their survival and expansion,
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generating a well skilled human resource and employment etc. We have learnt a lot during this
assignment.
Recommendations
ZTBL should improve the Management system. They should be employee and customer
oriented. They have to introduce the dress coat into the organization. Loaning procedure should
be easier and convenient to the customers and easy processing system. They should adopt the
new agriculture technology for the high level production to increase the GDP level of the
country. ZTBL has to play vital role for introducing new energies to overcome the problems of
the fuel and bio gas. Political involvement should be eliminated so that they can take good
decision and actions for the better disbursement. Marketing department should play vital role for
introducing new products. They should also play role for advertise their products and features
and functions of the products. ZTBL Head Office has to update the annual reports and manuals
annually. They should hire the employee on the merit basis. Their employees should have
knowledge about their organization and about its department where they are working. Employees
should be qualified and productive.