Bank of the Punjab Internship Report

8/7/2019 Bank of the Punjab Internship Report

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The Bank of Punjab Internship Report

BANKING HISTORY

Banking In fact is as primitive as human society, for ever since mancome to realize. The importance of money as a median of exchange. Thenecessity of a controlling or regulating agency or institution was naturallyfelt.

Origin. of banking in the world as priests "Trusted to Take case ofValuable" Particularly goods andservices,

In Britain 7 ' 1 ' century Gold Smith flourished not only as person whocould be trusted to keep deposit of Gold and silver for safe keeping.In 1844 Bank Charteract promulgated by the Govt, by which all privatebank were merged into Joint Stock companies,

Due to the veracity of resources of money bank have been placed invarious categories such as.

Central Bank Investmenr Bank Mortagage Bank Commercial Bank Merchant Bank


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INTRODUCTIONThe Hank of Punjab wall. established in 16 November, 19'89 under.

The Bank of PUnjab act ]989. the first Branch which opened Wi: \S the MainBranch Lahore, II] 1989 BOP was mended as a non ~ scheduled bank on inthe province of Punjab.

In beginning the main deposits were the government. Because i. t was'opened to support the government of Punjab.In [994 the BOP was convened into a scheduled Bank it opened itsBranches in allover the country,

To day they established 251. Branches allover the country as:

CITES NO. OF 8RANCHESProvince in Punjab 237

2Islamabad3Queta

3Karachi3A.J ..Kashmir3Peshawar

Total Branches: - 251

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The total numbers of staff of BOP is 3.pprox.

4000 most of the employees are master degree holder and are highlyqualified and has working.

In the beginning the main area of procurement of deposits were thegovernment - based organizations. The reason being that, it was ope TIledtosupport the government of Punjab, It quickly expanded its operations in thecity of Punjab by opening branches through out the province. Approximately(me branch was opened a day. The strength O f branches in. the province ofPunjab i5237.

In 191h Sept] 994 the Bank of Punjab was converted into a scheduledbank,

The permission being given by the Government of Punjab. Afterbeing convened into scheduled bauk it opened its first branch in thecity ofIslamabad (Blue Area) on the date ]9'" Sept 1994. now the total number ofbranches is 252 .. being towards the roads of prosperity and establishmentBOP expanded its network throughout the country the details O f branches areas under.

The total number of staff of BOP is approx, 4000. The staff of BOP ishighly qualified and hard working. Most of the employees are Master degreeholder.. If we highlight the fact of network BOP is the 6~' largest among both

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the local ,& . foreign banks, in the last years, ratingsit was at 7Lh position

among the top len banks in Pakistan.Bank earned a pre - Tax profit of Rs, 124.739 million and the

deposits of the Bank R~. 15,014.100 million as on 31- 12-1999.The Bank's paid-up capital in 1999 Rs. 851.880 million,

Macro economic management is the major concern of an economy ..InPakistan over a long period of time, the gaps in saving and investment andbalance of trade deficit have become the serious problem to achieve thedesire level of growth.

The Bank of Punjab by the grace of ALLAH has the privilege todischarge its responsibilities to words national progress and prosperity within the li ttle period if its scheduling.

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CORPORA TE OBJECTIVES

M1SSION srATEMENTTo provide a Comprehensive range of financial and related services

and so earn profit.GOALSTo achieve this objective me bank aims. to:

}- Ensure that its performance in all facts of its operations rnore thanmarches that of its competitors,

;.. Maintains- a comprehensive range of domestic and international activities.~ Maximize contributions from its key sources- of personal machinesbrands representation and capital

}- Be innovative progressive and the need of its customers with in the framework of operational and prudent risk taker.

;.. Act as a reputable efficient and responsible organization.}- Pursue personal policies which recognize the aspirations andperformanceof individual and which are suited! to the devise levels ofskills.

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SEGMENTATION ANALYSIS GEOGRAPHIC SEGMENTDividing a market into dlifferent geographical units such as nasions

states regions, countries, cities.The bank of Punjab also segment tile geographical in Pakistan specially bysector and by business and agricultural community.

ANALYSISGeographically segmentation Pakistan in 1999 as.

Profit before tax Rs. J24.739(M)

Total Assets employed IRs. L8 21 4 .1 S 4 (M )

Segment by business class' and agriculture.

Bank of Punjab specially target to the business commodity andagriculture because me mostly business based on agriculture so they arerelated to one an other.

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SEGMENT BY CLASS & BUSINESSS.No. Class of Business Deposits % Advances %1. Agri Forestry & Fishing 0.56 I 11.39'2. Chemical 0.05

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2.543. Food Industry 0.37 '1.374. Ins m an ce 0.07 I 0.005. Cement 0.09 8.706. Textile 0:23 22.887. Mining 0.07 0.008. Manufacturing Industries 0.60 I 9.729. Real Estate Dealers 2.17 0.0010. Services 1.20 0.0011. Transport 2.78 2.9812. Wholesaler & Retailer 4.92 8.2213, Financial Institute 4.53 5.7414. Electricity 0.78 4.6415. C o n s tr uc tion 0.57 1.9416. Trust 1.19 0.0017 . Others 79.82 19.92

TOTAL: 100.00 100.00

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SEGMENT BY SECTORBank of Punjab segment the moral the sector T IO inc the range and

share of the market 3,11dthey divided into two sector p

S.No. Sedor nepos-its % age Advances %age

1. Public InvestmentI

33.77% 5.42%

2. Private Investment 66.23% 94.58%

Tota) :. 100.00% 100.00%

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SOURCE OF BANK

The bank of Punjab releaze funds for the purpose of his business from thefollowing sources.1. Capital2. Reserves3. Liquid Assets4. International BankS. Enter Bank( ) . Deposits

1. Capital: -The main source of fund realization of the BOP is itsown capital, The

bank use its capital for the purpose of investment, lending and otheractivities to earn profit.2. Reserve Fund: -

It is the rule of the BOP that when they earn profit. He does dividedwhole the trading profit some portion of such profit which are undividedprofit are keep as reserve by bank.

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Ii) Advance: -Of RS. 39.273 million for the"year 1998. The clearly indicates the

improved performance of the Bank during the year 1999.advances stand atRS .6150.648 million showing an increase of lOo/~over the year 1998.ill) Investments: ~

Investments were at RS.4990.619 million at end of year 1999. Whichfrom 6581 millionas shown in 1998.

OPERATIONAs the year ended December 31 ,1999.the banks pre-division and

pretax profit was RS.20S.96 million as against a profit

FOREIGN TRADE &FOREIGN EXCHANGEDuring the year under the review, the foreign exchange business of

bank registered a steady growth. the foreign currency deposit rose by [44per cent and the numberof Foreign. currency account registered a:n increaseof Over 102% . import and export business rose by 20% the number ofauthorized branches dealing in foreign currency has also grown to 34 ascompared to 22 branches of proceeding year.

To provide the Bank's Customers with a range of services , we haveconcluded agency arrangement with a construction and real estate business

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7 , 80 per .cent ,(exule industry 5.93 % .services industry 7.42 per cent an d

other miscellaneous sector 24.54 per Cent

FOLLOW~UP& RECOVERIESThe year 1997 has been are mark able year for the recovery and

regularization of problematic finances .besides adopting State Bank ofPakistan's incentive scheme for loan, defaulters, voluntarily .strenuousefforts were also made t o retrieve banks precious assets .which showedhealthy results. We hope to achieve better results future.

FUTUR.E OUT-LOOKIn the wake of various bold and revolutionary measures initiated by

the government to restructure and revive the economy, it is expected thatdifferent economic sectors would shortly start registering the desired growth.In this era of revitalization of economy, the Bank of Punjab with all itsresources is well prepared to playa vital role in achievement of goals ofnational importance.

Lastly, I would like toavailthis opportunity to express gratitude 10 thebank's staff and clients for their support and cooperation for the preparationof til is report.

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WORKING OF THEBRANCH

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CASH DEPARTMENTJOB SPECIFICATIONWorking: .

The main pUirpose of cash department is that it deals ill money. Asbank: is borrowing and lending institution, therefore cash is the top mostpriority of Bank. Another aspect is that cash department is for the securitypurpose, security in a sense that there should be no embezzlement of fundsor in money leaded to bank by any patty or person. The efficiency of bank isalso related to this department the more efficient Ihe bank II > the more strongand. busy is the cash department. Cash department is divided into two i.e,

Receipts:-The receipts side deals in

Collection of funds. Acceptance of deposits.* ' Collection of utility bills.

PAYMENTSThe payments side deals with Payments of check Remittances.

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DEPOSITJOB SPECIFICATIONWorking: .

It refers to the money received by bank from people, parties, institutionsetc. The.Bank keeps these funds. People keep these funds with bank becauseof following purposes:

* SecurityGifts Schemes

Profit

" Proper usage of fundsMostly the bank keeps these funds in two shapes .i.e.* Current AIC Profit & Loss AIC

There is no profit on. CUITen~Ale and there is no limit of transactions.There is .3 . facility of credit also available that is running finance on currentaccount, As there is a percentage of profit gives on PLS saving A/c and thenumbe r of transactionsare limited upto 7 in a month.

The rate of interest 01 1 PLS Saving Ale is 6%, other list of interest isgiven below.

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ADVANCE DEPARTMENTJOB SPECIFICATIONWorking: -

Advances department deals in following transaction.L Preparation and submission of proposals of Running finance, Cashfinance, Demand finance, Export finance, Staff finance, Financeagainst imported merchandise etc for sanction of finance limit from

the hire authority.2. Preparation and posting of vouchering of all type of finance.3. Accruals & recovering of Markup on finances on periodical basis.4. Approval of transfer of funds through DDIT, PO,. MT, meo etc tovarious branches by debiting the limits.

5. Preparation of weekly, monthly, quarterly, and annuallystatement tothe hire authority.

6. Transfer of funds From one account to another .account of the partytaking the authority letter,

7. Preparation of advances record,S. Timely submission of returns/reports, daily. weekly, monthly &quarterly"

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9. Checking of computer outputs of thedepartment on daily basis,

I'O.Bnlancing ofall financing heads.ll.Maiarenance of Stamp on hank & Balancing.I2.Recovery of finances Installment.

A statement is prepared for th e purpose of calculating average rate ofmarkup on different finances ..

ISSUING OF LlGBank issues guaranties on behalf of its customers, whenever

customer's wants to completea project

PRODUCER OF ISSlJING OF LtGWhen a limit of LlG is approved by the bank authority counter

guarantees form I-B 30 is signed by the party. On the next stage the bankkept cash margin on various percentage. O r on the requirement of partyT.D.R. are issued equal to cash margin on the requirement of the party,However commission the rate: of OAO% per quarterly are kept oat bank. Oron the approved rate of commission by the authority is recovered from theparty.

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CUSTOMER SERVICES DEPARTMENTJOB SPECIFICATIONWorking: .

L Receipt of Cheques from customers.2. Preparation of transfer delivery /clearing,3. Maintenance of clearing proceed account.4. Preparation and realization of OBC5. DD payable advises posting and vouchering ..6. Early settlement of DD-ll entries.7. Balancing ofDD payable.8. Payment of DD/TTMrs & vouchering.9. Pakaccount reconciliation10. Correspondence relating department1I. Filling. of respective Deptt,

Any other duties assigned by the AVPIAGM operation or managercustomer services.

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MARKETINGDEPARTMENT

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MARKETING DEPARTMENTThe marketing department of the Bank of Punjab doing wonderful

job. Because of competition in market [here are may other Bank is exiting 1 . 1 1the market at that time Bank of Punjab also Tuna marketing campaignspecially in . cotton balt for limit from Ginner &OJ] Miller.

Bank o f Punjab use a marketing strategy with different way anddifferent scheme.

UTILITY SERVICESKeeping in view the difficulties faced by the general public BOP has

taken the initiative to provide service for collection /receipt of utility bills onbehalf of WAPDA, SU!i Gas ,Paktel .Instaphone and WASA from 9.00am4.00 p.m. all the branches throughout the countries are observing thispractice ro ease the long queues lined ~l1P at the counters of banks.COMPUTER[ZATIONIMODERNIZA TlON

In order to keep up with the pace of innovation the informationindustry; the bank has launched irs Web site, Readers can view our web pageand covers with the management and can also send their queries /suggestionon the E-mail at the:address given 00 the last page.

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The bank of Punjab has also planned to complete its branch

automation through computerization for its major working branches at theend of the year J 998. So far 29 branches have been computerization . thetreasury at Karachi has been linked with our head office. through on -dinesystem exclusively designed developed for eliminating the communicationgap. 'REUTERS' information system has been installed al internationaldivision so maintain track record oil' foreign exchange and currencyfluctuation. in order to safeguard the interest of depositor .close circuit TVcamerashave also been installed attall the main branches of the bank ..

PUBLICATIONSThe Bank's biannual magazine 'Pakistan Banker' is expanding the

circle of itsacknowledgemenr, Owing [0 the diversity of topics and literalstandards of material, the magazine has won top awards of best publicationin the country ..The Bank's monthly in house Newsletter serves as a sourceto develop aclose inrra-insritutional association.

HUMAN RESOURCES AND TRAINING ACTIVlTIESThe, Bank of Punjab avails a rich and diverse human resource

porenti at. In addressi ng tile need for upgrading the academic andprofessional expertise of staff upto the+current day's requirements, the

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HEAD OFFICE STRUCTURE

Legal

Support Staff Co. Secretary

Co. Affairs

Area Affairs

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Documents

Bank of the Punjab Internship Report