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CHAPTER# 01
INTRODUCTION TO ZTBL
Zarai Taraqiati Bank Limited
The Zarai Taraqiati Bank Limited (ZTBL) formally known as
Agricultural Development Bank of Pakistan is a public sector largest
financial development institution with a wide network of 27 Zonal
Offices, 09 Audit Zones and 342 branches in the country.
1.1 Brief on ZTBL:
Zarai Taraqiati Bank Limited (ZTBL) formerly known as Agricultural Development
Bank of Pakistan (ADBP) is the premier financial institution towards the development of
agriculture sector through provision of financial services and technical know-how. 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 and
increasing income generating capacity of the farming community.
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Zarai Taraqiati Bank Limited
1.2 History of ZTBL
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 and modernization of agriculture, including:
Forestry,
Fishery,
Animal Husbandry,
Poultry,
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.
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Zarai Taraqiati Bank Limited
1.3 Reason to Change ADBP to ZTBL:
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.
KARACHI (December 14 2002), The Federal Government has converted the
Agricultural Development Bank of Pakistan (ADBP) into Zarai Taraqiati Bank Ltd
(ZTBL) and the new venture has started its operation with immediate effect.
The new corporate structure redefines the banks status as a public limited company with
an independent Board of Director which aims are to ensure good governance, autonomy,
delivering high quality, viable and timely financial services to a greater number of clients
in the agricultural and rural segment of the country.
1.4 President of ZTBL
The Principal Officer of the ZTBL is the president. The current President of Zarai
Taraqiati Bank Ltd is Muhammad Zaka Ashraf who took over the charge
from Mr. Mansur Khan in September 2008 for a three years term.
1.5 Board of Directors
Mr. Syed Qamar-uz-Zaman Shah, Chairman Board
Mr. Muhammad Zaka Ashraf, President & CEO
Mr. Shafqat Hussain Naghmi
Mr. Iftikhar Khan Mohammad
Mrs.Nazrat Bashir
Dr. Khalid Ahmad Khokhar
Mr. Imam Bux Sheikh
Mr. Tauqir Ahmad Faiq
Mr. Muazam Ali, Company Secretary
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Zarai Taraqiati Bank Limited
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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
1.6 Vision Statement
To play effective role in the promotion of economic growth, by enhancing
the availability of credit to the agriculture sector, through reliable access to
sustainable financing, special lending programs, technical assistance, and
other products & services, and to promote career development opportunities
for increasing professionalism and technical proficiencies of employees.
1.7 Mission Statement
Zarai Taraqiati Bank Limited
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Non-clerical staff Clerical Staff
Grades of Bank
SEVP
EVP
SVP
VP
AVP
Grade-1
Grade-2
Grade-3
Assistants
Zarai Taraqiati Bank Limited
1.8 Organizational Chart
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CHAPTER# 02FINANCE AND ACCOUNT DIVISION
Zarai Taraqiati Bank Limited
1.9 Zones and Branches:
Total No. of Branches 342
Zonal offices 27
Area Offices 8
1.10 Division of ZTBL:
President's Secretariat
HR Division
Finance & account division
Credit Division
Research & Planning
Information System
Operations
Recovery & SAM
Field Audit
Legal & Vigilance
Services
Agriculture Technology
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Zarai Taraqiati Bank Limited
I worked as internee in finance and accounts division for six weeks. Following are
the aim, objective and function of this division.
2.1 Aim of Finance and Accounts Division:
Preparation of financial statements and maintenance of accounting record of the
bank.
To arrange sufficient funds and other resources the liquidity of the bank.
2.2 Objective of Finance and Accounts Division:
Submission of accounting results to the management for carrying out functions of
coordination, motivation, credit/financial planning, budgeting and control.
2.3 Functions of Finance and Accounts Division:
Issuance of instructions relating to accounting policies, procedures and closing
of accounts.
Reconciliation of inter-branch transactions/suspense accounts.
Preparation of periodical financial statements of the bank and to deal with all
related matters.
Preparation of payroll of head office and payments of all expenses incurred at
head office level.
Maintenance of books of accounts of head office.
Deal with tax matters relating to salaries/payments and submission of
statements to concerned quarters.
Payments and maintenance of record of staff advances at H.O
Arrange adequate resources for banks operations.
Optimize return on the resources of bank through efficient cash management
and investment activity.
Provide funds to branches requiring funds and receive back from branches
having surplus funds with them.
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CHAPTER# 03
BUDGET AND FUND MANAGEMENT DEPARTMENT
Zarai Taraqiati Bank Limited
Issuance of budget.
Compilation and processing information for preparation of annual budget.
Submission of budget proposals to the board of directors for approval.
Periodic evaluation/review of operational expenditure against budget
provision.
Preparation and submission of weekly, monthly, quarterly expenditure
monitoring report.
2.4 Departments in Finance and Accounts Division:
Finance and accounts division have four departments.
Budget and Fund Management Department
Head office Accounts Department
Regulatory Reporting Department
Central Accounts Department
3.1 Aim of Budget and Fund management Department:
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Zarai Taraqiati Bank Limited
Preparation of financial plan for Bank’s credit limits, funds review and their
application.
To arrange adequate resources for efficient disbursement, timely discharge of
liabilities and operations of Bank.
3.2 Units of Budget and Fund management Department:
Budget Planning Unit
Budget Analysis Unit
Treasury Unit
Fund Reconciliation Unit
3.3 Functions of Budget Planning Unit:
Develop departmental policies, procedures and standards for financial
management.
Develop budget planning process and parameters.
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Zarai Taraqiati Bank Limited
Communicate with administrative and governance groups on the budget process
and budget issues.
Issuance of budget calls memos.
Compilation and processing information for preparation of annual budget.
Arrange allocation of departmental code number with the change in
organizational set up whenever required.
Automation of budget making process and data.
Appropriation of capital and revenue expenditure for additional funds from
contingency/unforeseen reserves for new schemes introduced.
3.4 Functions of Budget Analysis Unit:
Prepare, analyze, coordinate and assess data reflecting performance information
of department wise financial activities.
Monitoring trend in expenses for ensuring financial discipline.
Take remedial administrative/financial steps for excess expenditure.
Communicate with administrative and governance groups.
Develop assumptions and strategy for the future budget cycle.
Quarterly evaluation/review of expenditures against provision and its submission
to audit committee.
Provide information and analysis to support institutional planning and decision
making.
Arrange training and support to departments and divisions throughout the budget
development cycle.
3.5 Functions of Treasury unit:
Arrangement of funds when required and maintaining record relating thereto.
Operation of Bank accounts with SBP and commercial banks.
Remittance of funds to the needy branches on daily basis.
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Zarai Taraqiati Bank Limited
Remittance of funds on weekly basis to the relevant branches for payment to
tractor manufacturing companies and maintenance/updating record.
Ensure that appropriate cash balance is maintained in branches.
Preparation of periodic statement showing movement of SBP loans and position
of Government Securities.
Attend various audit and inspection report of accounts of the Bank.
Maintenance/Monitoring of cash reserve with SBP.
Record keeping of cash inward/outward.
Matters relating to investment in securities/placement of surplus funds.
Coordination with SBP/Commercial/internal and external auditors with reference
to the matters of treasury unit.
Coordination with Accounts Unit in finalization of quarterly, semiannual and
annual accounts on issue regarding treasury unit.
Deposit rate declaration.
Fixation of cash limit.
3.6 Functions of Fund Reconciliation Unit:
Reconciliation of Bank Accounts being maintained with Commercial Banks at
Head Office.
Accounting of funds remitted/received to/from branches and other transactions
relating to department.
Responding of advices issued by the branches relating to un-changed deposits,
SBP penalties etc.
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CHAPTER# 04
HEAD OFFICE ACCOUNT DEPARTMENT
Zarai Taraqiati Bank Limited
Preparation of daily cash position relating to remittance/receipt of funds to/from
branches.
Monitoring of reconciliation of bank accounts of branches with other commercial
banks.
Monitoring of excess cash with branches.
Head office accounts department have four units and each unit perform its own
functions.
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Zarai Taraqiati Bank Limited
Employees Fund Unit
Payments Unit
Payroll Unit
Inter Branch Reconciliation Unit
4.1 Functions of Employees Fund Unit:
Recording of contributions towards employee’s funds and maintenance of
individual’s accounts in provident funds where applicable.
Investment of surplus funds, maintenance of books of accounts of trust funds and
arrangement of audit from the Chartered Accountants firm.
Payments of benefits of Benevolent Fund, Pension, Provident, Gratuity and Group
Term Insurance (GTI) to beneficiaries.
Payment of miscellaneous benefits like death compensation/donation to deceased
employee’s family, marriage grant to clerical staff etc.
Adjustment of outstanding staff advances of employees who die during bank
service.
Recoveries funds provident fund advances
4.1.1 Administration of Trust Fund:
Trustees are the administrators of trusts. Head of accounts department is the chief
trustee.
President of the bank nominates two or more employees to be the trustees of
funds.
Each trustee has one vote, decision of two third of trustees shall be final of whom
one shall be chief trustee.
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Zarai Taraqiati Bank Limited
4.1.2 Board of Trustees:
President ZTBL/Patron in Chief
Mr. Haider Ali Jan Arbab, SVP(HO Accounts)/Chief Trustee
SVP(HR)/Trustee
Mr. Ghulam Muhammad, VP(Employees Funds)/Trustee
Mr. Zahid Mahmood, AVP.Trustee
Mr. Muhammad Altaf, Officer (Payments)/Trustee
4.2 Function of Payments Unit:
Make all payments at Head Office and application of Income Tax as applicable.
Payment at H.O Level includes;
Payments to employees
Payments to Outside Agencies
4.2.1 Payments to Employees:
Payments of Misc. Advances (Petty Cash, Procurement Advances), T.A.
Advances, House Rent Ceiling Advances.
Procurement of Vehicle.
Entertainment charges, Furnishing Limit.
Payment related to Kissan Support Services (Pvt) Ltd.
4.2.2 Payment to Outside Agencies:
Payments of Budget and Fund Department Bills.
Payments of Stationery and press etc.
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Zarai Taraqiati Bank Limited
Payments of Repair bills of pool Vehicles.
Payments of Fee to teaching Institutions.
Payments of Hotel bills.
Payments of Consultancy charges.
Payments of Computer maintenance charges/New charges.
Payments of Medical and Utility bills.
4.3 Functions of Payroll Unit:
Preparation of Payroll of Employees posted at Head Office and disbursement to
them.
Payment of Leave Encashment, Overtime, Education Allowance/Stipend and
Lecture Fee etc.
Issuance of Last Pay Certificate (LPC) and No Demand Certificate (NDC)
Management of staff advances (House building, Conveyance, Personal, Computer
Advances etc.)
Maintenance of record/responding of advices regarding expenses of all Head
Office Units in the field.
4.4 Functions of Inter Branch Reconciliation Unit:
Timely reconciliation of inter branch transactions and communication in this
regard with Branches and Zonal Offices.
Generating reports of Inter Branch Transactions, Originating & Responding
outstanding entries.
Providing list of outstanding entries to the branches and those concerned at HO,
for reconciliation.
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CHAPTER# 05
REGULATORY REPORTING DEPARTMENT
Zarai Taraqiati Bank Limited
Coordinate with concerned Departments at Head Office for follow-up and timely action for reconciliation of outstanding entries.
Regulatory reporting department have main to units:
Financial management information system unit(FMISU)
Regulatory and internal reporting unit(R&IRU)
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Zarai Taraqiati Bank Limited
5.1 FMISU:
Financial Management Information Unit collects information from Field Offices
and various departments and provides this information to R&IRU for preparation of
reports.
5.2 R&IRU:
Regulatory and Internal Reporting Unit prepare and submits regulatory reports to
State Bank of Pakistan and Ministry of Finance.
5.3 Aims of Regulatory Reporting Department:
Compliance to the statutory reporting requirements.
Provide periodic financial reporting to the management.
Improve effectiveness in meeting statutory reporting obligations.
5.4 Functions of Regulatory Reporting Department:
Redesign system of data capturing, its consolidation and subsequent reporting as
per regulatory requirements.
Ensure implementation of changes in reporting requirements as amended from
time to time.
Design and implement internal reporting mechanism.
Coordinate with different departments and field offices for collection of requisite
data.
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Zarai Taraqiati Bank Limited
Issuance of guidelines for preparation/consolidation of data.
Arrange compliance of internal/external audit observation or regulatory reports.
Carry out periodic review/analysis of financial results and it reporting to
concerned.
Perform any other job as and when assigned by controlling authority.
5.5 Statements Prepared by Regulatory Reporting Department:
Regulatory reporting department collects information from various sources i.e. zonal
offices, field offices and consolidate this information and after verification and validation
generate Report and submit following statements to concern.
5.5.1 Weekly Statement
Weekly statement of position (Balance sheet), which contains assets and
liabilities.
5.5.2 Monthly Statements
Statement of cash balances with bank’s abroad
Statement of prize bonds
Monthly funds flow statement.
Statement of liabilities and assets-monthly for scheduled banks (new)
Statement of advances classified by securities/borrowers
Statement of advances classified by borrowers (online)
Statement of basic banking accounts
Statement of unsecured loans and advances.
Statement of rate of return on loans & deposits
5.5.3 Quarterly Statements
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CHAPTER# 06
CENTRAL ACCOUNTS DEPARTMENT
Zarai Taraqiati Bank Limited
Statements under section 4 & 12 of the banking co. Rules-1963:
Statement showing the names and address of the board of directors
Statement showing names designation and specimen signature of officers
authorized to sign the returns banking companies ordinance
Statement showing names and address of the higher management
Statement showing names of bank branches.
Quarterly statement of position.
Statement of minimum capital requirement.
5.5.4 Half yearly Statements
Schedule bank returns namely:
Liabilities & assets of scheduled banks
Classification of deposits and debits to deposit accounts
Classification of advances classification of investment in securities and
shares
Classification of bills purchased and discounted
5.5.5 Yearly Statements
Statement showing computation of rate of service charges
Statement of minimum capital requirement (audited)
6.1 Objectives of Central Accounts Department:
Formulation of accounting policies and procedures with a view to present the true
financial position of the bank in financial statements.
Preparation of financial statements as per requirement of statue.
Ensure proper accounting of assets, liabilities, income & expenditure.
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Zarai Taraqiati Bank Limited
6.2 Units of Central Accounts Departments:
Policy Unit
Accounts Unit
Tax Unit
Prepayment Verification Unit
6.3 Functions of Policy Unit: Plan accounting procedure for accounting in the branches as well as at head
office.
Arrange compliance of internal/external audit observation relating to field & head
office in respect of accounting matters.
Coordinate with other departments in the head office on policy matters.
Deal with policy matters relating to maintenance and operation of accounts.
Provide guidance to the branches regarding settlement of accounting errors and
audit observations.
Coordinate with credit rating Company for providing information for credit rating
of the bank.
Issue instructions relevant to books of accounts
Prepare agenda of management letters & executive summary for submission to
audit committee of board of directors.
6.4 Functions of Accounts Unit:
Coordinate with concerned departments for timely production of statement of
affairs.
Arrange compilation/merger of statement of affairs on country level.
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Zarai Taraqiati Bank Limited
Compile balances under relevant group of heads from trial balances for
preparation of financial statements.
Produce list of abnormal entries/balances for rectification.
Prepare quarterly, half yearly and yearly financial statements and its agenda for
presentation to audit committee & board of directors.
Provide statement of affairs of every branch and country to auditors for auditing
purposes.
Cooperate with external auditors, commercial auditors & SBP inspection team
regarding periodical accounts
6.5 Functions of Tax Units:
Issue guidelines regarding deduction of tax at source under the income tax
ordinance, 2001.
Collect tax payment documentary evidences for tax deducted at source from the
branches for submission, to tax advisor & tax department.
Coordinate with tax consultant, SBP & income tax authorities on tax issues.
Pursue the tax refund case with income tax offices, through tax consultant.
Prepare statement & payment of advance tax
Guide branches for settlement of tax issues.
Arrange payments to tax advisor, appeals fee & other mandatory payments
required under the income tax ordinance, 2001.
Attend tax related audit observations and arrange compliance thereof.
Perform any other assignment as and when assigned by the competent authority.
6.6 Functions of Prepayment Verification Unit:
Verify all payments relating to head office.
Check availability of sanction of the competent authority.
Check completeness of documentation and verification of arithmetic accuracy.
Check procedural compliance.
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CHAPTER# 07
Zarai Taraqiati Bank Limited
Perform any other assignment as and when assigned by the competent authority.
SWOT ANALYSIS
7.1 Introduction:
Swot is an acronym that stands for strengths, weaknesses, opportunities and threats;
Swot has a long history as a tool of strategic and marketing analysis, it can be used to
gauge the degree of “fit” between the organisation’s strategies and its environment, and
to suggest ways in which the organisation can gain benefit from strengths and
opportunities and shield itself against weaknesses and threats
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Zarai Taraqiati Bank Limited
SWOT analysis is one of the most important steps in formulating any strategy or
for evaluation an organization’s performance.
7.2 Strengths:
Credit rating report of Jun 22, 2005 JCR-VIS credit Rating Company has assigned
medium to long-term entity rating of ‘AAA’ (Triple A) with a Stable outlook and short
term rating of A-1+ (A-One Plus) to ZTBL.
This credit rating rate can help ZTBL to expand their business volume.
7.3 Weakness:
There is understaffing in some of the branches which causes unnecessary work
burden on employees decreasing their efficiency.
Lack of modern software, ZTBL only focus on Ms-Excel which is not enough for
competition, ZTBL needs to acquire software that can compete with the market.
Financial oracles or ERP (electronic resource planning) are the market prevailing
software, so bank should adopt these to compete with the market.
There is a lack of professional staff in different departments. Employees should
be appointed according to their qualification on specified seats. There must be a
job description which clearly identify that only whose are eligible for certain
posts.
7.4 Opportunity:
ZTBL can start mobile credit which is the best way to effectively utilize its
present resources to gain a competitive edge.
ZTBL can invest large amount in agriculture sector now-a-days in Pakistan
because too much area affected by he flood. issue a large amount of capital to
agriculture sector utilize its resources effectively earn more profit.
7.5 Threats:
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CHAPTER# 08
CONCLUSION
Zarai Taraqiati Bank Limited
Internet Banking the main problem 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.
Furthermore a 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.
I have completed my internship in ZTBL Head Office in Finance and Account
Division for Six weeks. During my internship in Finance and Account Division I worked
in different departments and units of Finance and Account Division.
All the staff member of Finance and Account Division are very cooperative and
friendly. I have learnt a lot during this internship and worked practically and I hope this
Institute of Management Sciences, UST Bannu | 25
REFERENCES
Zarai Taraqiati Bank Limited
internship will help me in my future life. And also hope that this internship training will
help me in interview when applying for a job.
At the end again I say thanks to all the staff member of Finance and Account
Division who help me through out smy internship training.
a. ZTBL Annual Report 2008
https://www.ztbl.com.pk/aboutus/financial_report/report_2008/
b. ZTBL Annual Report 2007
https://www.ztbl.com.pk/aboutus/financial_report/report_2007/
Institute of Management Sciences, UST Bannu | 26
Zarai Taraqiati Bank Limited
http://www.privatisation.gov.pk/Finance/ubl/UBL.asp?q=intr-ubl
e. ZTBL Manual: guide.
f. http://www.ztbl.com.pk
List of Contacts
Head Office Address:
Head Office: 1 Faisal Avenue P.O. Box No. 1400. Islamabad, Pakistan Email Address: [email protected]
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Zarai Taraqiati Bank Limited
Internee’s Address:
ADNAN KHAN BBA-IT (Hons) Cell # 0334-8832120 Email Address: [email protected]
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