INTERNSHIP REPORT ON BOP

INTERNSHIP REPORT ON BOP

INTERNSHIP REPORT

The Bank of Punjab

Name of Internship Assessor

Signature of Internship Assessor

DEDICATIOn

THIS REPORT IS DEDICATED TOAL MIGHTY ALLAH WHO GAVE US THE COURAGE AND STRENGHT TO ACCOMPLISH THIS REPORT

To our Loving Parents whose prayers make us able to complete this task.

To my affectionate teachers who have encouraged and supported me in the field of study, and every other field of life and to my friends who has helped me a lot.

executive summaryWe are living in a time of extraordinary change. The ecological and economic threat is looming large on the entire sphere of Pakistanis economy. Pakistani firms must design and make better products and services and should find better ways to market them. What was once regarded enough is no longer competitive. What were once limitless resources are now to be used more efficiently. Today an organization is on the leading edge, or it is on the bleeding edge.I have learned the lessons perhaps the hardest way, that is, though my mistakes. I have tried my best to peep into the generic as well as real cumulative problems faced by the pioneer of banking industry in Pakistan but that degree of objective analysis proved to be of little use since this bank is firmly entrenched in the laws of red royal bureaucracy.Several chapters have been inducted in the report but they seem to be very conventional in nature giving supplementary justification to the fact that BOP is the most conventional of the conventional bank.This report is an upshot of my internship in BOP branch Wazirabad. BOP posses an imperative and historical importance in the banking sector of Pakistan. It always remains the center of hustles in business activities. It always endows with great covenant of rally round in terms of funds and services at all epochs of its dynamism.

ACKNOWLEDGEMENT

All praises to Allah, the most Merciful, the most beneficent, the most forgiving, the most generous, the controller of the hearts and gazes and all- knowing of what that is open and what is hidden. I praise Him with the praise that is eternal throughout the night and the day. The path and teachings of the prophet Muhammad (Salal-a-ho Alai hi wasalam) induced enthusiasm and blessed me positive thinking.It is will of Allah that my honorable teachers have guided us to get training about banking technicalities and complete our tasks.Consequently I have taken upon my unworthy shoulders the responsibility of preparing Internship Report.I feel highly indebted and grateful and consider it my duty to pay my thanks to:ALLAH ALMIGHTY: for the guidance, strength and courage emanating from Him, in accomplishment of this job.

table of contents

Dedication..................................................1Executive summary. ..2 Acknowledgement.....3Chapter 11.0 Introduction.1.1 BACKGROUND OF THE STUDY1.2 PURPOSE1.3 SCOPE1.4 OBJECTIVES..1.5 METHEDOLOGY1.6 ORGANIZATION..1.7 SummaryCHAPTER#22.0 Introduction2.1 Banking sector of Pakistan.2.2 Role of BOP in Pakistan.2.3 Functions of BOP.2.3.1 CONSUMER PRODUCTS.2.3.2 FINANCE PRODUCTS..2.3.3 BOP CAR LOAN...............................2.3.4 BOP Aasaish Loan2.4 Organization in which once you are working..2.5 SummaryChapter 3: 3.0 Introduction:.3.1.1 Brief history of BOP:3.1.2 Relationship of head office to the branch office.3.1.3 Number of departments4.REMITTANCE DEPARTMENT.3.1.4 Regional offices and branches3.2 Current staff..3.2.3 Workload3.2.4 Salary structure3.2.5 Promotion system..3.2.6 Incentives and motivation3.2.7 Responsibilities and duties performed.3.3 Critical analysis of branch.3.3.1 Communication3.3.2 Recruitment of the Staff3.3.3 Morale of the employees.3.3.4 Physical facilities..3.4 Performance..3.5 Summary

Chapter#44.1 Introductions4.2 Policies4.3 Strategies..4.4 Successes..4.5 SummaryChapter55.1 Introduction..5.2 SWOT ANALYSIS.5.3 Porter model5.4 Summary..

CHAPTER # 11.0 Introduction: This chapter gives the information about the background of the study. This tells us what the purpose behind this internship report is and why we are undertaking internship followed by comprehensive report writing. The scope of the study is also illustrated in this chapter. The relevant areas discussed in this report are its scope. Apart from the main objective sub objective are also elaborated in this chapter. Sub objectives may vary person to person but the main objective remains the same. This chapter is all about why and how we have done internship and why it is followed by comprehensive report writing. In this chapter the methodology of the report and the data collection techniques are also explained. Primary and secondary data tools are discussed separately. At the end of the chapter the introduction of the organization is also given in which the internship has been undertaken/.this chapter is basically is an introduction of the study.1.1 BACKGROUND OF THE STUDY:The banking sector was the only one which was offering internship program on lenient bases. I also grab this opportunity with both hands and got my internship from a very well known organization BOP. The basic inspiration behind selecting BOP is its goodwill and adaptability to change. BOP also has a very charming outlook and wholesome physical facilities which also urged me to be an internee of BOP. 1.2 PURPOSE:The purpose of the study is to implement the knowledge of banking sector which I learnt and to observe the working environment in the bank.

1.3 SCOPE:This study is confined to the banking operations and critical analysis of the branch. An effort has been made to collect financial data and statistics of the bank to analyze the performance of the bank and its operations.1.4 OBJECTIVES:In the context of the purpose of the study there are following objectives of the study To analyze banking operations. To suggest recommendations. To improve report writing skills. To enhance interpersonal skills. To evaluate the application of knowledge learnt.1.5 METHEDOLOGY:Both primary data and secondary data are used in the preparation of this internship report. Tools used for collecting data are as followed. Primary data Observation Discussion with the bank personnels. Secondary data Brochures Annual reports Internet Previous literature and reports on BOP.1.6 ORGANIZATION:The Bank of Punjab was established in 1989 and was given the status of scheduled bank in 1994.The Bank of Punjab is working as a scheduled commercial bank with a network of almost 280 branches at all over major locations in the Punjab.The Bank provides 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 indeed entered a new era of science to the nation under experience and professional hands of its management. The Bank of Punjab plays a vital role in the national economy through mobilization of hitherto untapped local resources, promoting savings and providing funds for investments. The bank offers attractive rates of profit on all deposits, opening of foreign currency accounts and handling of foreign exchange business for example imports, exports and remittances, financing, trade and industry for working capital requirements and money market operations. The lending policy of bank is not only cautious and constructive but also based on principles of prudent lending with maximum emphasis on security. Scope of The Bank of PunjabBeing a commercial bank, The Bank of Punjab performs all such functions as are attributed to commercial banking institution both in the area of resources mobilization, loans and investment. The bank is thus providing all types of advances to business, trade and commerce on seasonal and annual basis, and is ensuring, through the product policy, the safety and protection of its loan portfolios, as the resources base of the bank expands, projects financing will also be brought into its fold.Hierarchical View of Management Shah dula road branch Total number of employees in Shah dula road Road branch where I did my internship is eleven. The branch was headed by Branch manager Mr syed tassawar haider shah. The flow of responsibilities and designations are shown in managements hierarchy.

The top most authority in a branch is the branch manager the rest of the staff come under his span of control. Then comes the operational manager then operational grade 1, operational grade 2, operation grade 3 and then clerical staff like cash officer and junior cash officer.The hierarchy according to the responsibilities performed is also classified as follows.The services in The Bank of Punjab are classified in different categories.Category ACategory BCategory CCategory D

PresidentOfficer Grade IClerical Staff

Non-Clerical Staff

Executive vice president (EVP)Officer Grade II..Driver

Senior vice president (AVP)Officer Grade IIIGuards

Vice President (VP)Cash OfficerGate Keepers

Assistant vice president (AVP)....................Tea Boys

Vision statement

"To be a customer focused bank with service excellence" Mission statement

To exceed the expectations of our stakeholders by leveraging our relationship with the Government of Punjab and delivering a complete range of professional solutions with a focus on programme driven products & services in the Agriculture and Middle Tier Markets through a motivated team. 1.7 Summary:In this chapter we have described the background of the study which explain why we do internship and why it is important for the students of MBA. The purposes of this internship is to give an idea to the student that how the knowledge is being implemented in the real life working environment. The banking sector and functions of the bank are considered to be the scope of the study. Both primary and secondary data are used in the complilation of this report. An overview of the organization is also given in which this internship has under taken.

CHAPTER#22.0 Introduction:In this chapter we will explain the overall banking sector of Pakistan and contribution made by the banking sector in the economy of the country. The whole banking sector and its history will also going to be a part of this chapter. The different phases through which our banking system has been undergone since 1947 .The role of BOP will also be explained in this section of the report. How is creating value for the people of the country. The role of BOP towards industrial and agricultural sectors will be discussed later in this chapter. The functions of BOP will be explained in detail in this chapter. The functions will include the core business activities performed by the BOP. Functions are the activities through which organization achieve its organization goals. The products and services offered by BOP will also be a part of this section. Products launched for different sectors of the economy such as industry and agriculture and household customer.2.1 Banking sector of Pakistan:Banks play very important role in the economy of a country and Pakistan is no exemption. Banks in Pakistan account for 95% of the financial sector. Pakistan has a well-developed banking system, which consists of a wide variety of institutions ranging from a central bank to commercial banks and to specialized agencies to cater for special requirements of specific sectors. The country started without any worthwhile banking network in 1947 but witnessed phenomenal growth in the first two decades. Pakistan came into being on 14th August, 1947; sufficient banking services were available in the areas forming Pakistan. Out of the total branches of the nearly 3,500 in the undivided India, as many as about 1,500 branches were existing in these areas.It was agreed between the two countries that reserve bank of India shall continue to function in the Pakistan territory until 30th September 1948 and that Indian notes would continue to be legal tender at Pakistan until 30th September 1948. Unfortunately, relationship between the two countries became most strained immediately after independence; banking was mostly in the lands of Hindus who immediately started transferring their offices and assets into India. As a result most of the banks in Pakistan were closed down and even those which were open were not doing any effective business.The number of banking office in Pakistan came down to about 200 on 30th June 1948. Branches of some European banks were also functioning in a limited manner, financing in export of crops, and their number was limited to about 20.It was only the Habib bank, which transferred its office from Bombay to Karachi Austral Asia bank was another bank, which was in existence in the Pakistan territory at the time of independence. Despite of best efforts on the part of government of Pakistan, no heady way could be made on this behalf and reserve bank of India was in no mood to help the new country. Imperial bank of India, agent of the reserve bank of India also started closing down its branches in Pakistan.Reserve bank also refused to advance money to Pakistan to make essential payments such as salaries etc, also Pakistans share of Rs.75 billion in cash balance was with held by bank, causing hardships to the newly born state. In view of these hopeless state affairs it was agreed between the two countries that reserve bank would serve as monetary authority in Pakistan only up to 30th June 1948. The era of 90s was the climax of privatization, deregulation and restructuring in the domestic banking industry and financial institutions. The Government only owns the National Bank but 80% of bank assets are in private sector. Banking assets rose three-folds over the last five years and the industry size are reaching Rs 4 trillion. The contribution of banking sector to GDP ratio is 55.6%. Pakistan has been ranked 2nd in performance and efficiency indicators among the South Asian countries by the World Bank. There are 68 scheduled banks of which the top five have 50% of the market share. Banking industry, in Pakistan, is currently under a wave of Mergers and Acquisitions (M & As). Government owned banks Privatized Banks:

Zarai Taraqiati Bank Limited Allied Bank Limited

Industrial Development Bank of Pakistan Habib Bank Limited

First Women Bank Limited MCB Bank Limited

Khushhali Bank Limited United Bank Limited

National Bank of Pakistan Development financial institution

The Bank of Khyber Pak Oman Investment Company Limited

SME Bank Limited House Building Finance Corporation

The Bank of Punjab National Investment Trust Limited

The Punjab Provincial Cooperative Bank Limited Pak Brunei Investment Company Limited

Private banksPak Iran Joint Investment Company Limited

Bank AL Habib Limited Pak Kuwait Investment Company

Meezan Bank LimitedPak Libya Holding Company (Pvt.) Limited

KASB Bank Limited Foreign Banks:

Habib Metropolitan Bank Limited Oman International Bank S.O.A.G., Pakistan

Faysal Bank LimitedHSBC Bank Middle East Limited, Pakistan

Emirates Global Islamic Bank Limited Citibank N.A., Pakistan

Dubai Islamic Bank Pakistan Limited Deutsche Bank AG, Pakistan

Dawood Islamic Bank Limited Private banks and development institution

Arif Habib Bank Limited Bank of Tokyo Mitsubishi UFJ Limited, Pakistan

Barclays Bank PLC, PakistanRozgar Micro Finance Bank Limited

Askari Bank Limited Tameer Micro Finance Bank Limited

Atlas Bank LimitedPak Oman Microfinance Bank Limited

Bank Alfalah LimitedPak-China Investment Company Limited

NIB Bank Limited Pak-China Investment Company Limited

The Royal Bank of ScotlandNetwork Micro Finance Bank Limited

Standard Chartered Bank (Pakistan) Limited KASHF Microfinance Bank Limited

Silkbank Limited Formerly Saudi Pak Commercial Bank LimitedSoneri Bank Limited

mybank LimitedSamba Bank Limited Formerly Crescent Commercial Bank Limited

2.2 Role of BOP in Pakistan:

BOP creating employment opportunities by increasing its number of branches and extending its reach to far off areas of Punjab. BOP is playing very positive role in the economy by mobilizing the resources and channelizing the funds. Agriculture is the backbone of our countrys economy. BOP is facilitating the agriculture sector by providing a number kisan dost schemes which are helping the lower and middle class of our villagers. BOP is committed to provide excellent services to the customer at very reasonable cost. BOP is playing a critical role in increasing the GDP. BOP is providing different types of loans to the industrial sector which are also helping the countrys output to increase The foreign exchange trade department is functioning very efficiently which is facilitating the businesses to import and export the merchandise. BOP financing the ideas of female entrepreneur which is producing fruitful results. Those women who have the abilities and skills but do not have the resources are availing this opportunity and using their talent to their best interests. The BOP is also providing loans to the mille class people by providing loans to the people for their shops and offices.2.3 Functions of BOP:The Bank of Punjab being a commercial bank performs all those function as are attributed to such banking institutions both in the areas of resources mobilization and investment. It is providing funds for commerce, trade, industry, and agriculture but its main emphasis is on accelerated development of agro-based industry. So the main objective of the bank is to channelize the resources into sectors, which have suffered from neglect. Banks perform their functions through their products and services provided to the customer. The major products of BOP are as follows.2.3.1 CONSUMER PRODUCTSa) Saving Accountsb) Current or demand accountsc) Fixed accounts

a) SAVING ACCOUNTS(PLS)These types of accounts are designed to encourage the saving habit of the customer and lead to long term or invest relationship. Bank saving account are in the nature of deposit accounts and are not normally available for drawings.Rates of interest are typically ahead, by a small margin. Savings accounts with the banking sector represent a very small proportion of total deposits. Customer can make withdrawals from this type of account. The cash reserve ratio is typically low then the current account because the withdrawals against this account are very low.b) CURRENT OR DEMAND ACCOUNTThese are those deposits, which can be drawn by the depositor at any time by representing a cheque to the bank. People deposits their money in this account they gave a ready command on their account in developed countries of world, a very significant part of money is kept under current or demand account. On this type of account of interest transfer of cash or by at sight. The cash reserve ratio for his account is very high. The operating cost for the handling of this type of account is very regular.c) FIXED OR TERMS ACCOUNTFixed accounts are those which are deposited for a fixed period of time and repayable after the expiry of stipulated time to the customer. Those people who have surplus funds and want to have save investment deposit the amount in the fixed account.The rate of interest given to depositor varies with the length of deposit, i-e. It is higher for longer period and lower for shorter period.The rate of this type of deposits is higher the saving bank accounts. The cash reserve against this deposit are vary low because there no fear of with draw of a month before the stipulated of time.2.3.2 FINANCE PRODUCTSa) Agriculture Schemesb) Business Promotion Finance Schemes

a) Agriculture SchemesThere are many agriculture promotion schemes provided by BOP. Kissan Dost Agricultural Finance Scheme Kissan Dost Tractor Finance scheme Kissan Dost Aabiari Scheme Kissan Dost Mechanization Support Scheme Kissan Dost Farm Transport Scheme Kissan Dost Eslah-E-Arazi Scheme Kissan Dost Live Stock Development Scheme Kissan Dost Live Stock SchemeSuch type of schemes provides farmers a real plate form to accelerate. Some facilities given by Kissan Dost Agricultural finance scheme are:b) Business Promotion Finance Schemes BOP Quick Cash BOP Car Loan BOP House Loan BOP SME Loan BOP Assaish Loan BOP House Loan For Federal Govt2.3.3 BOP CAR LOANBOP car loan is a demand financing facility to purchase brand new locally manufactured/Assembled cars for personal use. This facility can be availed by salaried person of different nature and by the business persons. All must have the holdings of NIC.2.3.4 BOP Aasaish LoanBOP Aasaish loan is demand finance facility for purchase of consumer durable goods like TV, Refrigerators, Mobiles, Microwave Oven, Fans, Audio/Video system etc with no down payment, in addition with the free home delivery. The financing tenure of this product is max 36 months. The nature of employment should be salaried or the business man.2.3.5 SERVICESThese are the services provided by the BOP.a) ATM Facility b) Letter of Creditc) Pay Orderd) On-Line Banking e) E-Bankingf) Debit Card g) Consumer Financing h) Agriculture Financing i) Corporate Financing j) Commission free Remittancek) Demand Draftsl) Collection of Utility billsm) Lockers Facilitya) Automated Teller Machine (ATM)Through the ATMs Customers have access to the various services such as withdrawal, balance enquiry and mini statement? Complete security is ensured because access to the account is only possible by entering a four digit personal identification number (PIN) known only to the account holder. Cash withdrawal limit is up to Rs.20, 000 per day. Annual charges of ATM is Rs.250/- per card.Online BankingBOP is currently offering window-based online banking to its customers, which gives access to information on their accounts and the liability to act on the latest information received over the net.b) LockersIt is one of the utility services that BOP provides to their customers for keeping jewellery important documents and other valuables.c) Demand DraftsBOP provides safe, speedy and reliable way to transfer money at vary reasonable rates. Any person whether an account holder of the bank or not, can purchase a Demand Draft from a bank branch.d) Letters of CreditBOP is offering its business customers the widest range of option in the area of money transfer. BOPs letter of credit service is with competitive rates, security, and ease of transaction, BOP Letter of credit is the best way to do the business transactions.e) Pay OrderBOP provides transfer of money using different facilities. Its pay orders are a secure and easy way to move the money from one place to another. The charges for this service are extremely competitive.f) Mail TransferMoves money safely and quickly from BOP Mail Transfer service. The rates for this service is quiet impressive as compare to the market.

g) Short Term InvestmentBOP offers excellent rates of profit on all its short term investment accounts. The packages are starting from 3 months. BOPs rates of profit are extremely attractive, along with the security and service only BOP can provide.h) Agricultural FinanceIt help farmers utilize funds efficiently to further develop and achieve better production. Provides farmers an integrated package of credit with supplies of essential inputs, technical knowledge, and supervision of farming.2.4 Organization in which once you are working:I have done my internship in shah dula road branch of BOP. It is situated in the heart of the city. It covers almost all the circular road area which is a trade centre in Gujrat. This branch has a very good outlook. It is an online branch. It is also one of those branches which are proving profitable and meeting their targets.2.5 Summary:Pakistan has a very dynamic banking system. It has a great potential and it covers the 70 percent of the whole financial sector. The banking sector is a mix of private and state owned banks. Specializes and development banks are also a part of the banking sector. The banking system helps in mobilizing the resources of the country.BOP is also working in the interest of the country by channelizing the funds and providing the safe and sound cash transfer from one place to another. BOP performs all the functions of a commercial bank such lending accepting deposits and acting as an agent on behalf of its customers. The role of the BOP is to facilitate the household and business community. BOP has launched a number of products and services through which it performs all the functions of a commercial bank. Currently the banking sector is going under a depression. High regulations are applied from the SBP.

CHAPTRT#33.0 Introduction:This chapter is all about the branch in which I have done my internship. The introduction of the current staff and their qualification and their experience will also be discussed. The responsibilities performed by the employees and the promotion system are a matter of concern of this section. In this section of the report the brief history of the organization will be explained. How old the organization is? And for what purposes it was established will be explained in this chapter. The communication system of the head office and branch will also be discussed in this portion. The number of departments and their functioning in the branch will be discussed in detail. The salary structure of the employees and incentives for their motivation are also elaborated in this chapter. The physical facilities of the branch and its critical analysis are also done in the coming pages. The workload of the employees and the performance of the branch are also included in the topics and discussed briefly. The level of customer satisfaction and the hierarchy of the branch are a part of this chapter.3.1.1 Brief history of BOP:The Bank of Punjab was established in 1989 and was given the status of scheduled bank in 1994.The Bank of Punjab is working as a scheduled commercial bank with a network of almost 280 branches at all over major locations in the Punjab.The Bank provides 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 indeed entered a new era of science to the nation under experience and professional hands of its management. The Bank of Punjab plays a vital role in the national economy through mobilization of hitherto untapped local resources, promoting savings and providing funds for investments. The bank offers attractive rates of profit on all deposits, opening of foreign currency accounts and handling of foreign exchange business for example imports, exports and remittances, financing, trade and industry for working capital requirements and money market operations. The lending policy of bank is not only cautious and constructive but also based on principles of prudent lending with maximum emphasis on security. Mission StatementTo exceed the expectations of our stakeholders by leveraging our relationship with the government of Punjab and delivering a complete range of professional solutions with a focus on program driven products and services in the agriculture and middle tire markets through a motivated team.Vision Statement To be a customer focused bank withservice excellence.Core values: Our customer as our first priority. Profitability for the prosperity of stakeholders that allows us to constantly invest, improve and success. Excellence In everything we do. Integrity In all our dealings. Respect in our customer and each other.3.1.2 Relationship of head office to the branch office:The relationship of head office to the branch office is also termed as the management of hierarchy. There is a certain method of communication between head office and branch office. If head office want communicate it will first communicate with the regional office, the regional office will communicate with the area branch office and than the area branch office will finally communicate with branch office.Head officeregional officearea branch branch office3.1.3 Number of departments:1. Account Opening Department2. Clearing department3. Collection department4. Remittance department1. Account opening department:Its mean cash and deposit department. The jobs of this department are following:a) Account Openingb) Account Closingc) Cheque Book Issuinga) Account Opening ProcedureWhen a customer wants to open an a/c he comes in this department of the bank, and submits an application for opening an a/c. The officer of this department gives him an application form. This application form is useful for all accounts opening e.g. PLS CD etc. The requirements of application form are those information which bank wants to know. Following are in the bank:Types of accounts

Individual Account

Proprietorship

Joint Account

Partnership/Firms

Club, Society, Association of Persons Trust

Limited Company

Necessary information, which a bank requires

Name Operating Instructions

Address Introducer

Telephone # Country of residence

Zakat Deduction Nature of Business

Signature of the Applicant Account (local or foreign currency)

Details of other Banks Accounts Special Instruction Regarding the Account

Documents to be attached Attested Photo Copy of NIC/Passport of account holder, Proprietor, Partner, Directors and Office Bearers as the Case may be. Certified true copy of the certificate of incorporation or registration (in case of companies and registered bodied only). Certified True Copy of the Certificate of Commencement of Business (in case of public limited companies only). Certified True Copy of the Memorandum and Articles of Association (in case of limited companies). Certified True Copy of Rules and Regulations or By-Laws (in case of limited companies). Certified True Copy of the Resolution of the Board of Director/Managing Committee/Governing Body regarding conduct of the account. List containing names and signatures of the Director/Office Bearer duly certified by Registration Authority. Letter of partnership or Certified Copy of Partnership dead (in case of partnership). Trust deed and Board Resolutions, for Trust accounts.SPECIMEN SIGNATURE CARDWhen an account is opened with account opening form a specimen signature card is given to the customer, which contains; Branch Code Date Account No. Title of A/c Special Instructions Names Signatures Approved ByThe customer fills this card and returns it to bank officer. For illiterate persons thumb impressions are taken and two latest passport photographs shall be taken. This specimen signature card is scanned in the computer system. So that whenever the account holder cheque will come the bank officer will verify his signature to the computer. b) Cheque Book Issuing:A chequebook contains a number of cheques, which enables the customer to make withdrawal from his account or make payment by issue of cheque. After account opening a chequebook requisition, which is infact, a request to acquire a chequebook. This requisition form is given just for first time getting chequebook or for new a/c holders. When the a/c holder is old then a chequebook slip is already in his chequebook before 10 leaves of the chequebook. So when the account holder reaches to this slip after issuing the first cheques, he fills this slip and presents it to the bank. This slip contains: Title of the Account Date (in 2 places) Account # Cheque Book from_____to_____ Signature of Account HolderWhen the new or old customer presents the requisition form or cheque slip the bank officer fills a bank chequebook slip. In this cheque book he fills the;NIFT keeps the record of these issued chequebooks. These cheques are sent to the bank. NIFT also sends a summary of these cheques books containing the account numbers and title of accounts. The bank also keeps records of these cheque books. The bank officer receives these cheque books with clearing. He writes the title of account and number of account at the first page. He brings out the cheque books slips and vouchers. He fills the cheque book slips by seeing the numbers of cheque book leaves. He enters these cheque books in computer system. He files the summary of the cheque book in a separate file. However, big mills or companies who a number of cheque books at a time need may present the more cheque book slips. c) Closing of AccountThe customer can close his account by submitting an application form. The account is closed and balance is paid after deducting the closing charges and application is filed in account closing file. Cheque book is returned to the bank. The bank officer cancels all the cheques. Dormant AccountWhen any customer does not operate his account for 6 months, then computer, automatically, includes that account holder in inactive account. This is dormant account. Now account holder cannot operate his account. Bank informs him that your account is now inactive.Activation of a Dormant AccountFor activating a dormant account the account holder submits an application that he wants to activate his inactive account, with N.I.D. copy. Then the bank officer fills an account, which is Account Activating form. The bank manager signs on the stamp of Allowed to operate. Now account holder can operate his account but for activating his account, he has to pay some charges.

2. Clearing DepartmentAs implied from the name that this department is for clearing the cheque,which are drawn on the bank or drawn on another bank.There are three types of clearing: a) Inward Clearing b) Outward Clearing c) Within Bank Clearing a) Inward ClearingInward clearing means the cheques which are to be honored by the bank but which are received through other banks representatives. These are the cheque, which BOP account holder gives to such account holders who have their accounts in other banks other than BOP. So those banks submit their cheque books to NIFT.NIFT-National Institutional Facilitation Technologies (Pvt) Ltd.The facility of clearing is provided by SBP. Each bank collects the cheque on behalf of their customers of other banks and hands over this cheque to NIFT. When NIFT collects the cheque in the evening from every bank, then at night all cheque are sorted according to their banks and then according to their branches. Then cheques of one branch e.g. of BOP shah dula road are kept in one bag with the detail summary of cheques e.g. number of cheques, total number of cheques and amount. This bag is locked with the special plastic key.Next day before bank starts its work the NIFT representative gives this bag to clearing department head and returns. Clearing department head sorts these cheques according to PLS, CD, PO, DD and counts that cheques number are equal to summary cheque number. Reason of ReturningAfter all this the bank officer enters these cheques in inward clearing register regardless of returned cheques. Then these cheques total is matched with NIFT summary. Then these cheques are entered in computer and debited the accounts of those account holders who issued these cheques. In posting when the officer finds that account holder has not sufficient fund or signature are not verified by SSC then he returns these cheques with memorandum. After doing all these cheques are again kept in that bag which is locked with special plastic key. With returning cheques a pink colour slip is attached which has the title Clearing Return. After half an hour NIFT representative comes back and takes this bag back and goes away. The officer circles with red pen in register those cheques which are returned and writes R. Then he prepares an IBCA.

b) Outward Clearing.Outward Clearing means the collection of cheques on behalf of customers. These cheques are those, which are drawn on other banks. This clearing can be local or out station. When customer brings such cheque, he fills the deposit slip. He keeps counterfoil and the remaining part is stapled with the cheque. The bank officer stamps the crossing stamp. He also stamps the clearing stamp of next day and endorsement stamp. In this clearing the bank receives the cheque whole day and enters those cheques in outward clearing register c) Within bank TransferIf the cheques are drawn on same bank or on other branches of thisbank then it is called clearing within bank. Such Cheques are marked with transfer bank.3. Collection Department:The collection of cheques and other instruments has become very important services that commercial banks render to their clients. While collecting cheques and other instruments, a bank acts as an agent of its customer. Therefore the banker customer relationship changes in this case from debtors and creditors to the agent and principal besides the we commission. It increases the interaction between the bank and the business community.Bills of CollectionThere are two types:a. OBC (Outward Bills for Collection)Cheques and other instruments drawn on other bank in other cities are known as Outward Bills for Collection. In this case instrument goes out and funds come in. Therefore it is favorable cheque. Our branch sends the instruments to other branch in that city that branch receives payment from the other bank and credits our branch and we credit our customer a/c.b.IBC (Inward Bills for Collection.)Bank receives cheques, draft and other instruments for collection from branches of other banks, which are not included in local clearing house arrangements. They are Inward Bills For Collection. In it, instruments come and funds go out. Therefore it is unfavorable.Other branches send cheques and schedule to us and we send an advice to the Drawee branch.

4.REMITTANCE DEPARTMENTThis department has following remittances:a) Demand draft(D.D) b) Pay orderc) SDR

a) Demand draft:Thats an order to pay money. It is drawn by one branch of bank upon another branch of the bank for a sum of money payable to order or demand purpose to be endorsed by or on behalf of the payee. The bank is discharged by payment in due course.

b) Pay order (P.O) It is an instrument, which is payable on demand and only presentable within the city. Pay order is also called the bankers cheque, drawn upon the issuing branch itself. Though, an order instrument, which means transferable, it is not negotiable and therefore bankers tend to cross the instrument Payees A/C only to avoid the possibility of dealing with instrument with forged endorsement. The dept of the bank, for making payment on presentation of P.O. the bank is liable to pay the amount to customer.c) SDR (Security Deposit Receipt) :When any company wants to participate in any tender that orders for an SDR. If he wins the tender then its ok. But in case when he does not win the tender then tender, making company will cross it and write on it Released. Before it many companies made just one SDR and would use it for many tenders. So for avoiding such deeds that tender making company crosses it. And that person can encash it from the bank.3.1.4 Regional offices and branches:Regional officeNo. of branches

1. Faisalabad 43

2. Lahore 67

3. Gujranwala45

4. Multan 64

5. Karachi 07

6. Rawalpindi 38

7. Peshawar08

The total number of braches of BOP is 272 in the whole country. It has no branch in foreign countries.

3.2 Current staff:There are 7 employees in the branch. They are very much qualified and have a reasonable knowledge of general banking. There is a proper hirarchy in the branch and every employee knows his responsibilities.3.2.1Current staff according to qualification and experience:NamesQualificationExperience

Syed.Tassawar shahMSC Physics 11 years

Rehmat ullah bashirM.Com07 years

Ikram ullahMSC Physics09 years

Umair ansir M.A Economics 02 years

Tahir mehmoodB.Com03 years

3.2.2Training received by no. of employees:i. Off the job trainingThere is a special department of BOP which trains every new recruits of BOP.This department is called Officers training institute. It is situated on upper Mall Lahore. Every newly hired employee of BOP is sent to Lahore for 5 weeks training in this institute.ii. On the job trainingJob rotation is one of the most common method of on the job training. Employees are rotated and their job descriptions are also altered to prepare the bank up for every post in the branch.3.2.3 WorkloadThe official timing of all the employees is 9:00 am to 5:00 pm.The average workload is 8 hours a day but mostly employees have to work for more than one hour without any extra benefit. The average workload is 10 hours a day.3.2.4 Salary structure:BOP is offering handsome salary packages to its employees. Its salary structure is as follows.DesignationStarting salary in rupees

Cash officer8000

Officer Grade 316000

Officer Grade 224000

Officer Grade 135000

Apart from the salary the other incentives are also provided.3.2.5 Promotion system:The employees are promoted to reinforce the desirable performance. There are Certain criteria on which employees are evaluated. Employees are promoted on the basis of performance and their commitment towards their jobs. Employees are also promoted on the basis of their experience and qualification. The highest rank in a branch is OG 1. The performance is evaluated on the basis of working as well as the number of deposits brought by that employee. If any employee is extracting huge number of deposits in his branch there is a bright chance of his promotion.

3.2.6 Incentives and motivation:Incentives: Two bonuses on Eid ul Azha and Eid ul fitr. Each bonus is equal to one basic salary. Performance bonus at the end of the year based on the performance. Provident fund Medical allowanceMotivation: Employees are motivated through benefits and salary Employees are motivated when their hard work is recognized. The staff of the branch is also motivated due to the success of their branch and organization. There is no separate room for the manager of the branch The environment of the branch is very congested. The sitting place for clients is 3.2.7 Responsibilities and duties performed:NamesJobs performed

Syed Tassawar shah

Designation:Branch manager

Overall affairs of the branch. Checking and ensure effectiveness of control system and working procedures. Meeting existing and New Customers. Marketing business/deposit development and public relations. Performance evaluation of reporting staff. Develop objectives for reporting staff. Conduct periodical meeting of the staff. Liaison with controlling offices. Follow-up for recovery of Non performing finances

Rehmat ullah bashir Designation:Officer manager Collection of bills Remittances Clearing On-line banking Supervision and authentication of cheques and deposits. Handle the affairs of ATM department Branch care taker. He also handle all the maintenance of the branch Also deals the affair of foreign remittance with Aftab exchange and Habib Express.

Ikram ullah DesignationOperation manager Supervision of all assigned operation department Ensure check and control systems are in place. Create cordial and customer friendly atmosphere in branch. Ensure continuous satisfactory service to the customers. Ensure compliance of bank/SBP and local regulations. Approval of opening of new accounts. Approval of expenses budget with delegated authority Develop duty list for all branch operation staff Develop objectives for operation staff Cross-training to the staff Management of staff attendance and vacation Conduct periodical meetings of operation staff

Umair ansir DesignationOperation manager Entry and supervision of cheques and deposit slips Issue of cheque books Clearing of bills Collection of bills Ensure continuous satisfactory service to the customers. Review of daily activity reports. Ensure compliance of bank/SBP and local regulations.

Tahir mehmood Designation Cash officer Receive cash Payment of cash Tally the cash in hand with the vouchers

3.3 Critical analysis of branch: The branch is situated on circular road which is the most busiest place of Gujrat. The trading activities are on the rise where the branch is located so there is a huge potential for the branch to increase its deposits and improve its market share. The number of deposits is increasing day by day. The attitude of the staff towards their customer is very polite. The online banking facility is very quick and responsive. The security system of the branch is not satisfactory. Security lapses may occur at times Employees are not well dressed There budget for employee entertainment is very low Employees are highly trained The salary package of the employees is not as attractive as compare to other banks. No refreshment is provided after the meeting The latest computer systems are provided to the employees3.3.1 Communication:The communication between employees is not very good. Employees interact with each other through loud voices. There is no intercom system in the branch. The employees interact with each other in Punjabi. The employees also communicate with customers in a very informal way. The overall communication is not very good as per todays banking system.3.3.2 Recruitment of the StaffRecruiting is the discovery of potential skills of the employees to fulfill organizational needs or we can say that it is the linking activity for bringing together employees with skills to fill the vacancies. The recruitment procedure has following steps:a) Short- listing of the ApplicationIn this step, thousands of candidates apply for limited posts available. The candidates are scrutinized and the test calls are sent to them. The calls are sent by the Head Office to only those candidates who fulfill the requirement of the job advertised.b) TestsNBP under the supervision of the Institute Of Bankers In Pakistan conducts test. After the tests the applicants are further short-listed.c) InterviewsFor the interviews only those candidates are called who qualify the written tests. Different types of questions are asked from the candidates by the interviewing board. Interview questions include,a. Questions about the personal background, extracurricular activities during education and about personal contacts.b. About the role of banking in current situation of economy.c. Role of foreign enterprise in public economy etcApart from these questions, the candidates personal interests are also discussed and an effort is made to have an understanding of the individuals personality. After these questions, an evaluation is made about whether the candidates will prove himself as a valuable asset to the organization or not.d) Merit ListAfter the final result, the successful candidates are sent the appointment letter and they are asked to sign the agreement with the bank.3.3.3 Morale of the employees:Morale of some of the employees is very high. Some of the employees are not as much dedicated as others. Most of the employees are committed to their jobs and they look very involved in there work. Overall the staff of the branch is very motivated and they want to excel in their respective fields.3.3.4 Physical facilities: Overall physical facilities in the branch are very good. All the general banking operations are done through manually supported computer system High speed branded computers are provided to the employees so that they can perform their duties quickly. Airs conditioned are installed to provide comfort to the employees and the clients of BOP. The branch is decorated with comfortable furniture. Good looking and durable furniture is provided. Cash officers cabin is well guarded to avoid any undesirable event. The branch is also privileged with the facility of generator in case of load shedding. Fax machine and laser printer are also provided. It is an online branch so internet connectivity is provided with throughout the working hours3.4 Performance:The performance of the branch has improved to a great extent. this can be by the number of deposits and the degree of the satisfaction of the customers.Performance in terms of customer satisfaction:The customers are very much satisfied as I observed during my internship. There is a good relationship between employees and clients. The staff of the branch is very quick to respond to the queries of the customers. Performance in terms of number of deposits:The performance of the branch can be measured from the number of deposits. Currently the performance of the branch is very good. The number of deposits is increasing. The average numbers of new accounts opened in a day are 5 to 6. This shows a very good performance of the branch. 3.5 Summary:the BOP is an re emerging bank and providing the services to the clients. It was established in 1989. It has regional offices as well as branches in far off areas. BOP has all \the departments in its each branch which needed to facilitate the clients. The staff of the branch where I have done internship is very much qualified and experienced. The employees are heavily loaded with work. Salary and incentives are given to the employees for motivation. They performed their duties assigned to them. The branch is very congested.

Chapter#44.1 Introductions:The BOP has its policies of compliance with the regulations of the SBP. It has formulated the policies to avoid irregularities. The broad guidelines are laid down for its day to day activities. The branch has laid down the stratigies to achieve the goals. The branch has the policy to increase deposit and decrease lending. It has enjoyed the ever number of increasing deposits. 4.2 Policies: Know your customer policy and Anti money laundering policy:In order to achieve desired KYC standards & prevent the Bank of Punjab from being used for money laundering, terrorist financing, transfer or induction of illegal / ill-gotten money in to the banking system, the KYC Policy has been developed & implemented. In the present scenario of international as well as local banking the importance of Know Your Customer (KYC) / customer due diligence has been increased to many folds. The KYC Policy has been developed to ensure / obtain the proper / verifiable answer to the following queries. a) Do you know who you are dealing with? b) Do you know what your customers needs and circumstances are? c) Can your customer be engaged in money laundering?? Implementation of KYC policy, on one hand provides protection against unforeseen events / money laundering to the bank and satisfaction / protection to branch management / staff on the other. Obtaining maximum realistic information about the customers is the basic principal of good KYC policy. Branch officers / staff should prudently ensure that at the time of accountThe Know Your Customer (KYC) and Anti Money laundering (AML) policy of The Bank Of Punjab (BOP) has been formulated to ensure that Bank is performing its business in conformity with the regulatory requirements issued by the SBP & Controlling agencies at One hand and international KYC / AML policies & standards on other. Purpose of the policy The purpose of the KYC / AML policy is to: Adhere to Know Your Customer (KYC) policies & procedures. Comply with all applicable money laundering laws and regulations and internal policies and procedures Protect the Bank from being used as a channel for illegal transactions arising from money laundering activity. Protect the reputation of the bank and clearly disassociate from the increasing danger of organized criminal activity and money laundering. On detection of suspicious activity, take appropriate action at management level. Ensure that all detected suspicious activities are appropriately reported to the regulatory authorities in accordance with applicable laws.Accounting policies:Foreign currencies:Transactions in foreign currency are translated to Rupees at the exchange rates prevailing on the date of transaction. Forward exchange contracts and foreign bills purchased are valued at forward rates applicable to their respective maturities. All exchange differences are charged to income.Provisions:Provisions are recorded when the Bank has a present obligation as a result of a past event which it is probable will result in an outflow of economic benefits and a reliable estimate can be made of the amount of the obligation.Dividend distribution and appropriations:Dividend distributions and appropriation to reserves are recognized as a liability in the financial statements in the period in which these are approved. Transfer to statutory reserve and any of the mandatory appropriations as may be required by law are recognized in the period to which they relateImpairment:The carrying amounts of assets are reviewed at each balance sheet date for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be recoverable. If such indication exists, and where the carrying value exceeds the estimated recoverable amount, assets are written down to their recoverableThe resulting impairment loss is taken to the profit and loss account except for impairment loss on revalued assets, which is adjusted against the related revaluation surplus to the extent that the impairment loss does not exceed the surplus on revaluation of that asset.4.3 Strategies: Increase deposits through self marketing and quick responsive services to the customers. Decrease advances and lending to reduce the number of non-performing loans. Capture the market share in the area. Provide loans to the retailers against their inventory. Regaining the trust of the customers.

4.4 Successes: BOP has able to regain the trust of the people. The number of accounts and number of deposits has been increasing The number of non-performing loans has reduced. Customers are very much satisfied with working of the branch.4.5 Summary:The policies and strategies are proving fruitful for the bank and it has achieved its objectives through the strategies. The broad guidelines laid down by the SBP are strictly followed by the BOP.

Chapter55.1 Introduction:In this chapter analysis of the organization has been done. The swot analysis and porter model has been used to analyzed the external and internal environment. BOP has certain strengths and weaknesses. The external environment forcing the bank to change its policies.5.2 SWOT ANALYSISBOP is one of the fastest growing banks in Pakistan. In the light of these situations we can make an analysis. Strengths: The major shares of BOP is owned by the Govt. of the Punjab, so it can develop a good image & trust among it customers. Personal selling has key role in banking service. The officers of the Bank of Punjab go to the potential customers to develop the business. By the relationship with customers, they achieve the deposit targets. The promotion criteria of the bank are on the basis of the efficiency and passing the diploma examination of Pakistan Institute of Bankers. It is the policy of the management that requirements are made according to the principles of merit. The bank to train them in gives the staff banking. The past percentage of the candidates of Bank of Punjab is the highest among the entire commercial every year. People have trust in the Bank of Punjab because govt. of Punjab 52% shares of the bank. There is no union in the Bank of Punjab. Working environment is good. Officers and managers work together as a team. They are very cooperative with each other. Higher management is experienced. BOP has got a reliable and easy to use internal computer system. Every information regarding the transactions in customers deposits has been computerized. Data are properly maintained. Low cost than other major banks Increasing the number of branches in the country Successfully launching new Product LinesWeaknesses:Although the bank is growing fastly but it has some weaknesses which it should remove to make itself further strong. The staff is not satisfied with the salary structure Gives its staff less benefits Lack of proper internal controls is one of the major weakness of BOP. It is also pointed by the auditor in his review. BOP has formulized a lot of products and services for its customers, even more than other commercial banks, but any advertisement on electronic media has not been seen. I observed during my internship that some of the employees were burdened with over work. So I think that the work should be distributed according to their post and capabilities. Biased selection of employees. Corrupt former management has shattered the trust of the people. Now BOP regaining the trust of the people. Political influence is very high. Loans issued in the era of Hamesh khan are mostly non performing loans. Weak security system in the branches of south Punjab. The Bank of Punjab has very less staff in the branches of South Punjab as compared to Upper Punjab. This creates the problem employees have to spent most of their time in the bank to complete even their daily routine work. They have to sit till 7:00 to 8:00 PM before going back to their homes. For this reason their normal life is disturbing which create the irritation in the behavior of employees.

Opportunities: Although commercial banks have launched many products but a gap exist between the customers want and what the banks are providing. This is an opportunity for the Bank of Punjab to move in and fill the gap between the ideal bank and the current service offerings by aggressive advertising, consumer friendly attitude products and service for attracting customers. The Bank has opportunity to expand the branch network all over the country, and it would be able to develop business and can start many other schemes for investment. The Bank has opportunity to use latest technology for providing good s There is an opportunity for more businesses if the BOP opens its branches in foreign countries. There is an opportunity for more businesses if the BOP offered credit cards. Different multinational are establishing their businesses in Pakistan. So there is a lot of potential for future businesses.Threats: Uncertain economic conditions Action taken by competitors Despite the difficult circumstances that confronted the banking sector in particular and the country in general, BOP has been still highly profitable. But, the facts cant be denied and there might be an adverse impact of such situation. BOP is facing a strong competition by its competitors, Business of all these Banks are growing at very high pace.

5.3 Porter model:1. Entry barriers (high)The Pakistani market is highly regulated by the government and also by central bank. A lot of decision such as regularization of interest on loans and deposits as well as money supply is controlled by the state bank of Pakistan2. Rivalry among the existing competitors (high)When it comes to the banking sector in the country we could include in whole lot of public as well as private banks along with NBFCs and micro finance institutes widely spread in the country. The banking sector of the country has 56 banking institutions which include public sector, Islamic banks, foreign banks, development financial institution, specialized banks, and micro fianc institutions. 3. Bargaining power of suppliers (medium)The supplier of banks is people from whom the bank raises funds. So the major source funds come from their customer (depositor), who becomes the supplier in this case4. Bargaining power of the customers (medium)The customers and the depositors have a high bargaining power in the market. Any bank giving the higher rate of interest would attract a large number of customers. Because there are number of banks operating in the market which offer similar service.5. Threat from substitutes (high)There are number of substitutes in retail fianc industry such as money lender, NBFCs, micro finance and also the insurance companies. Banks are seeing the competition rise from unconventional companies. Markets like Pakistan customer have high propensity towards switching to other substitutes

5.4 Summary:BOP has certain weaknesses and strengths. The external environment has a great influence on the performance of the bank. The regulations are very high the environment is very competitive.

In the light of the Knowledge obtained during internship and studying the organization, the following recommendations may prove to be successful to the bank.

In order to capture a considerable share in the banking sector of the country, the prime objective should be awareness in the general public. For this it should launch a well-planned advertising campaign in the general public. Physical facilities in a bank also play their role in enhancing its grade and sound image. The bank should keep these facilities like furniture, parking facilities for the customer. Salaries of the officers must be compatible to other private banks so that the BOP can attract professionals, intelligent persons. The Bank of Punjab should minimize its expenses. Special awards should be given to the hardworking employees who performed extra-ordinary in the bank. The bank should come up with new and innovative products. It would be advisable to make these products while keeping in mind the gap between what people want and what their banks are providing them. The Bank of Punjab should concentrate more on advances than on investments The bank should come up with such products or services in which the customers would not have to come to the bank at any stage i.e. Telephone Banking etc. The Bank of Punjab should use the latest technology because the bank which can provide speedy, accurate and standard services in the delivery of products, loans etc. to the customers will be successful e.g. computerization, fax installation. The authority should be delegated to the manager level. MIS should be improved by connecting all regional offices and branches to the head office through a network for timely delivery of information. Management of Bank of Punjab should try to avoid the political influences and should give loans on merit. The bank should make a plan to gear up its recovery function on war fooling and recognize the recovery function. The Bank of Punjab should give some extra credit to concern to professional qualifications such as MBA(IT)s, M.B.As, C.As A.C.M.As at the time of recruitment and selection. Interview should be conducted while recruiting personnel, to consider the personality characters, communications skills and sociability. The bank should adopt a policy to accommodate and facilitate the research scholars who want to study the banking affairs. The universities and other institutions can help to launch the studies regarding banking business. All possible efforts should be made to protect the bank from the interruption of Provincial government. There should be an association of employees to convey the voice of the employees to the administration. Participative management concept should be adopted, where ideas from the employees should also be taken, not only for developing products but also on service, efficiency, employee morale etc. in order to improve them.

Bank of Punjab is a very well established bank, but the number of air conditioners they have in the whole bank is very less. Bank should increase the number of its Split units, because summer stays longer in Lahore. The number of Fax machines and photocopying machine in the bank are also less than they are needed. For photocopying one has to go downstairs. So there should be more machines and also their placement should be at the right place. BOP should introduce more training programs for their employees. It will help less educated and less experienced staff to grow and be a valuable part of the bank.Conclusion:At present there is no such organization in the world that is free from problem and challenges. Every concern has to strive and struggle a lot to be more profitable and to get more competitive edge.The management of BOP is taking strategic steps to enable the bank to emerge as a strong and progressive institution. It is continuing to make efforts to refine its products and operations to make them more compatible. New deposit schemes have been introduced and an action plan to maintain revenue growth in future.As the business and economic conditions remain uncertain, BOP continues to develop the new products like it has been doing in past. BOP must reduce the political influence to regain the public trust and make prudent lending.

Bibliographyhttp://www.bop.com.pk/http://www.bop.com.pk/careers/index.aspxhttp://en.wikipedia.org/wiki/National_Bank_of_Pakistanhttp://www.sbp.org.pk/http://www.bop.com.pk/Publications/index.aspxhttp://www.pakistaneconomist.com/database2/pakbanks.asp

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