The Bank Of Punjab

INTERNSHIP REPORT ON The Bank of Punjab

Submitted to:

The Bank of Punjab

Submitted by:

Muhammad Tanveer Roll # MBK-O7-34 MBA (Banking & Finance) 3rd Semester Session 2007-2009

Institute of Management Sciences Bahauddin Zakariya University Multan

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The Bank Of Punjab

Dedication

Dedicated to my parents who gave me enough Courage to face the difficulties of my life. Whose love and prays always Accompanied me and guided me Like a shining star whenever I was in darkness and Enabled me to reach This stage, May
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The Bank Of Punjab

They live Long!

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The Bank Of Punjab

TABLE OF CONTENTS Acknowledgement.........................................................5

PREFACE............................................................................. 6 INTRODUCTION TO THE BANK OF PUNJAB............7 Vision..................................................................................... 8 Mission..................................................................................8 Core Values........................................................................... 8

Genral banking..................................................................9
Deposit Department........................................................................9 Clearing Department..............................................................................................14 Cash Department .....................................................................................................15 CREDIT......................................................................................................................19 ADVANCES.................................................................................................................19 FUNDED.....................................................................................................................19 AGRICULTURE FINANCING.....................................................22 AGRI-SCHEMES.......................................................................................................23 CONSUMER FINANCING.................................................................................24 BOP ASSIAH LOAN:.................................................................................................24 BOP QUICK CASH LOAN:......................................................................................24 BOP CAR FINANCING:...........................................................................................24 BOP HOUSE LOAN:.................................................................................................25 SME FINANCING .......................................................................25 SMEproducts...............................................................................................................25 CNG Filling Station .......................................................................................................26 Lady Entrepreneurship Financing ...26
Dealers/ Franchising Scheme .....................................................................................26

NON FUNDED...............................................................................27
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The Bank Of Punjab

GUARANTEES .........................................................................................................27

TABLE OF CONTENTS.....................................................4 Acknowledgement................................................................5 PREFACE............................................................................6 INTRODUCTION TO The BANK OF PUNJAB..............7 Mission.................................................................................. 8

ENTERIES...................................................................................................................13

Acknowledgement
One is the first the Almighty ALLAH whose blessings are above each and every thing which make
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The Bank Of Punjab

me able to present my tiny effort. All prays to HAZARAT MUHAMMAD (PBUH) who is the reason for creation of the universe and whose kindness came to my heart. On the successful completion of my report, I wish to express my gratitude and heart worthy acknowledgement to Team of The Bank of Punjab whose inspiration helped me in the completion of this report. And I feel utmost pride in acknowledging with sincere gratitude for the valuable guidance I have received from My Teachers PREFACE
In MBA (Banking& Finance), Internship Program is an important part to give students an opportunity to have experience of practical field. Unless and until the students experience the novelty of practical work, their knowledge of what they study in theoretical courses remains incomplete. By this subjective knowledge along with practical touch, boosts morale and confidence of the perspective executives. So internship plays an indispensable role in their future success.

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The Bank Of Punjab The most important point in an Internship Program is that the students should spend their time in a true manner and with the spirit to learn practical orientation of theoretical study framework. This internship report is on my six weeks practical training at a well established and organized bank, The Bank of Punjab, Hussain Agahi Branch Multan. In this internship report I have tried to give details about the Bank of Punjab, working and the functions of different departments of the bank.

MUHAMMAD Tanveer MBA (Banking& Finance) MBK-07-34

INTRODUCTION TO The BANK OF PUNJAB

The Bank of Punjab established under the Bank of Punjab Act 1989. It started functioning on November 15, 1989 as the first provincial bank of the country. The Bank was established under Section 28 of the federal list stated in the 4th Schedule of the constitution of Pakistan, 1973.The Bank was accorded the status of a Scheduled bank by the State Bank of Pakistan on 19-09-1994 and as a consequences the bank was authorized to operate throughout the Pakistan as a full fledge Commercial Bank. Present Authorized capital of the Bank is one billion rupees and liability of the shareholders is limited. Nothing in the companies ordinance 1984, shall apply to the bank and the bank shall not be placed in liquidation

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The Bank Of Punjab The Bank of Punjab is working as a scheduled commercial bank with its network of 272 branches at all major business centres in the country. The Bank provides all types of banking services such as Deposit in Local Currency, Client Deposit in Foreign Currency, Remittances, 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. Attractive rates of profit on all types of deposits, opening of Foreign Currency Accounts and handling of Foreign Exchange business such as Imports, Exports and Remittances, Financing, Trade and Industry for working capital requirements and money market operations are some facilities being provided by the Bank. The lending policy of Bank is not only cautious and constructive but also based on principles of prudent lending with maximum emphasis on security. As agriculture is considered as backbone of our economy the Bank of Punjab has introduced "Kissan Dost Agriculture Finance Scheme" to small farmers.

Vision
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Mission
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 programmed driven

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The Bank Of Punjab

products & services in the Agriculture and Middle Tier Markets through a motivated team.

Core values
Our customer Profitability Corporate social Responsibility Recognition and reward Excellence Integrity Respect as our first priority for the prosperity of our stakeholders that allows us to constantly invest, improve and succeed to enrich the lives of community where we operate for the talented and high performing employees in everything we do in all our dealings for our customer and each other

GENERAL BANKING:
In general banking, The Bank of Punjab provides following types of services to the general public. Deposit Department Cash Department Remittances
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Clearing Department

Deposit Department
In deposit department following functions are performed:

Opening of Account:
The primary operation of bank is opening of account. The types of account normally used in the bank are: SAVING ACCOUNTS CURRENT OR DEMAND ACCOUNTS FIXED ACCOUNTS

Saving Accounts (PLS):

These types of account are designed to encourage the saving habit of the customer and lead to long-term or invest relationship. Bank saving accounts are in the nature of deposits 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 any withdrawals from type of account. The cash reserve ratio is typically low than the current account because the withdrawal against this account is very low.

Basic Banking Account (BBA)

The minimum initial deposit will be Rs.100, 000. No profit will be Payable. No fee (service charges) for maintaining such accounts will be charged. In the cases, there balance in BBAs remaining "NIL" for a continuous 6-month period, such accounts will be closed. Account holder will be allowed a maximum of 2 deposit transactions and 2 checking withdrawals, free of charge either through cash or through clearing per month otherwise service charges of a regular banking account shall be applicable for that month as per Bank's Schedule of Charges. Unlimited free of charge ATM withdrawals from Ban's own ATM's will be allowed. In case of withdrawals from BBA though the ATM Machine of other Banks, the Charges of these Banks shall be applicable for such transaction.

Current or Demand Account:

These are those deposits, which can be drawn by the depositor at my time by representing a cheque to the bank. People deposits their money in

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The Bank Of Punjab this account they gave a ready command on their account in developed and under developed countries of the 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 cheque takes place 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 high because with drawls are very regular.

Fixed or Terms Account:

Fixed 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 investments 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 lowers for shorter period. The rate of this type of deposits is higher than saving bank accounts. The cash reserve against this deposit are very low because there no fear of with drawl of a month before the stipulated of time. No paying books or passes book or cheque is issued to the customers against these depositors.

Some other accounts are given as

Escrow account Trust account Staff account

PROCEDURE OF OPENING AN ACCOUNT:

Before giving the procedure for opening an account with BOP, it is important to note that a copy of National Identity Card is deposited with the bank when opening a new account. If the person intending to open the account cant sign, he/she is also required to deposit three recent passport size photographs.

AN ACCOUNT OPENING FORM IS FILLED IN

A prescribed printed account opening form in duplicate is provided to the applicant for opening a new account. BOP formatted a single form for all types of accounts. The form is filled in and signed by the person intending to open the account at specified places. In case the applicant is an illiterate person, the banker fills in the form according to information

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The Bank Of Punjab provided by the applicant and obtains his/her thumb impressions (right for female and left for male) at the signature places. The bank holds the original account opening form and duplicate copy is provided to the account holder for record. The account opening form contains the following information; Type of account, Type of Currency, Status of account. Initial Deposit of Money. Name of operating person and capacity. The name, address, profession / business, NIC # etc The name, account # and signature of the introducer. Important rules and regulations applicable to this account and The signature along with the account number of the introducer.

Declaration:
The signature of the account opener is also obtained on a Declaration by which he binds himself to abide by rules and regulations of the bank, which are read by him or read to him.

Specimen Signature Card (S.S card):

After the account opening form has been properly filled up, the specimen signature of the account opener is obtained on the specimen signature card and held as specimen signature card (S.S.Card)

Deposit of Initial Money:

The account opener fills in pay -in-slip and deposit the initial money with which he willing to open the account. Minimum cash for opening of account is Rs2, 500/- at present. No account to be opened without cash.

Issuance of Cheque Book:

When the account has been opened, the banker issues a Cheque Book to the account holder. This contains some (10, 25, 50 or 100) leaves to be used for withdrawing money from the bank.

Payment of Cheques:
It is considered, as the simplest work in consumer banking operations, but actually it is not that simple. The Cheques that are presented for either

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The Bank Of Punjab payment or for deposit are the main points where most of the frauds occur. There are few points to be noted while scrutinizing a cheque for payment or deposit, Date of the cheque Signatures of drawer Signature of Presenter Amount in figures and words Branch stamp Account number of the drawer Crossing in favor of any other person Cheques for cash payment are taken from presenter, scrutinized and the presenter is issued a token. But the cheques, which are presented for deposit in accounts of customers, are not taken against tokens, rather a pay-in-slip is to be filled in and the cheque is presented along with that slip. As the cheques are taken for deposit in customers account, a Cheques Receipt Summary is prepared in which cheques are entered according to their category, i.e., Transfer Delivery, Clearance or Collection.

ENTERIES
Entry name Opening of account Issuance of cheque book Deposited in account Drawings Cash Customer account Cash Customers account Dr Cr Customers account I. Central excise duty II. Provincial tax Customer Account Cash

Account Maintenance:
The second major department in consumer banking is the Maintenance of different types of Accounts. This department Marjory consists of the following works; Account opening procedures Issuance of cheque books Deposit and withdrawal of cash 13

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The Bank Of Punjab Monthly provision of profit Posting of deposit and withdrawals in computer Issuance and payment of Term Deposit Receipts Issuance of Call Deposit Receipts Daily balancing of accounts in computer with other summary sheet Printing of daily transactions Printing of Balances of all types of accounts (Jotting) Checking of print-outs

All these procedures, except few, are daily repeated. I have done many of these works with my own hands and watched carefully the remaining procedures.

Reopening of closed account

Closed accounts are not allowed to reopen but inoperative and unclaimed account can be reopened.

Requirements
Specific request containing valid reasons for reopening of closed account Copy of CNIC Fresh know your customer form Fresh introduction Written application by the customer to the bank of Punjab manager

Transfer of account
All the banks specially the bank of Punjab provide the of the transfer of account from one branch to another branch within the city and outside the city of the same bank without any charges.

Dormant and inoperative accounts

Type of A/C PLS/BBA CD Period for dormant 12 month of last operation 6 month of last operation Period for inoperative 24 month of last operation 24 month of last operation

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The Bank Of Punjab

CLEARING DEPARTMENT
Collection of Cheque:
Collecting the proceeds of Cheques/drafts of BOP and other banks is also one of the primary functions of The Bank of Punjab. For collection purposes all the Cheques drawn on the other branches of The Bank of Punjab, sent directly to those branches. However, the Cheques drew on a bank other than The Bank of Punjab is collected through clearing.

What Is NIFT?
Until a few years ago the cheque sent in clearing used to be collected at the main branch of each bank, sorted out bank wise and then sent to SBP for debit/credit to the account of the concerned bank. The balancing was manual and delays were a common feature. In 1996 a private company was incorporated by the name of National Institutional Facilitation Technology Limited to handle this most important segment of banks business. The automated clearing system came in to operation in Karachi as the first center in 1996.By the end of 2005 it has spread to Lahore,Islamabad,Faisalabad,Hyderabad,Rawalpindi,Multan,Peshawer,Quetta.shortly all other important remaining cities would be covered by the system The introduction of the automated clearing involved creating local stands for encoding cheques and other instruments, assisting banks in preparing standard code line. The system operation has proven to be a very successful arrangement.

PROCEDURE INVOLVED IN COLLECTION OF CHEQUE

The procedure is that when a cheque is deposited with the BOP for collection first of all bank puts its Crossing stamp on the cheque and fills in credit -slip the counterfoil of which is provided to the depositor. Then the banker enters the details of the cheque in the system The banker then sends the cheque for clearing through NIFT. Then NIFT sort all the cheques bank wise and branch wise after sorting the cheques they make the summery and one copy send to SBP,one copy head office of concerned bank and one copy and instruments send to the relative branch.

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The Bank Of Punjab The receiving branch will post the cheque in the ledger/computer and write it in the Transfer Book. Then it will send an Inter Branch credit advice (IBCA) to the chequesending branch that will then credit the amount of the cheque to depositor account. In case the cheque is sent to a bank, which has to go through clearing.

CASH DEPARTMENT
The main purpose of cash department is that it deals in money. As bank is borrowing and lending institution, therefore cash is the top most priority of Bank. Another aspect is that cash department is for the security purpose, security in a sense that there should be no embezzlement of funds or in money leaded to bank by any party or person. The efficiency of bank is also related to this department the more efficient the bank is the stronger and busy is the cash department. Cash department is divided further in two category i.e. Receipt Payment

Receipts: The receipts side deals in * * Collection of funds. * Acceptance of deposits.

Collection of utility bills.

PAYMENTS
The payments side deals with Payments of check Remittances.

CASH BOOK BALANCE

At the end of working day, cash officer is responsible to maintain the cash balance book. The cash balance contains the date, opening balance, details of cash payments and received

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The Bank Of Punjab in figures Rs. And Ps. closing balance, denomination of Govt. notes (currency). It is checked by the manager. The consolidated figure of receipt and payment of cash is entered in the cash book and the closing balance of cash is calculated from that i.e. (Opening balance +Cash receipts Payments =Closing Balance)

Remittance of Money:
The Bank of Punjab, like other Commercial Banks undertakes to remit or transfer money from one place to any part of the country and outside the country. The money is remitted by means of: 123Demand Draft (DD) Mail Transfers (MT) Pay Order

Demand Drafts (DD):

The most common means of remittance in the bank is Demand Draft. When a person wants to transfer his money to anther person having account with any other bank, he can do so by obtaining a Demand Draft. The purpose of DD is to secure the amount, which we have. DD is a very secure method of transferring the money from, one place to another.

Procedure:
The person who wants to obtain a DD first of all fills in a prescribed application form. In this an application the applicant request the bank to transfer his money to the other place and that all the danger or risks will be born by him. In this form following details are given. 12345Date Amount of DD both in words and figures Name of the beneficiary Name of the city where this DD will be payable Signature and address of the applicant

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The Bank Of Punjab The banker will calculate and write the amount of the commission, with-holding tax, and postage, to be charged on the issuance of DD, on the application form and will give the application form back to the applicant who will deposit the amount with the cashier. The cashier puts the received cash stamp on the form in the DD issued register and then he issues a DD on a prescribed printed leaf. To avoid any fraud the amount of DD is also PROTECTOGRAPHED ON THE DD. Finally the DD is signed by at least two officers of the bank. The DD is then handed over to the applicant. The DD may be either opened or crossed. The bank after issuing DD sends the Drawee branch an advice to intimate that we have credited the proceeds of this DD at your end. So you may make the payment of this DD to the payee. This advice is sent through a prescribed printed form called Inter Branch Credit Order (IBCO). The Drawee bank will make the payment on such a DD only after verifying the test number. The Drawee branch on receiving the advice of DD will enter it in the DD payable Register and make a voucher by crediting the amount of DD to the DD payable account and debiting the originating branch of the DD through the same IBCO (in case of telegram will make separate debit the amount the DD from the Bills payable DD payable Account.

Mail Transfer (MT):

To transfer money from one place to another through a bank the second means of remittance is Mail Transfer generally called MT. Money is Transferred through MT mainly because the transferor, unlike in case of DD does not want to obtain and take care of any instrument like DD and, of course, to present it at the Drawee bank. So in order to avoid above mentioned risks, which may contribute to the loss or delay on the part of both the banker and the DD holder, the money transferor resorts to the MT. Remittance of money through MT requires the filling in of the application form by the applicant just like in the case of DD. In this form the applicant himself has to give name of the branch and account number of the payee where he wants to transfer the money. The bank receives commission and postage charges along with the amount of the MT. The banker after entering the details of the MT in the issued register issues a MT on prescribed leaf. The bank through registered post to the Drawee bank sends the original MT. The Drawee bank will credit the proceeds of MT to the account of the person whose name and account number is written on the MT.

Telegraphic Transfer (TT):

The quickest means of remittance in the bank of Punjab is Telegraphic Transfer normally called TT. The application procedure involved in the TT is almost the same as is in the case of MT. In fact in the bank of Punjab the Application form for DD, MT, and TT is the same. The applicant only has to point out which of these

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The Bank Of Punjab means of remittance he wants to opt. The charges of TT is more than the charges of DD and MT. Originating branch fax TT Message to the Drawee branch with secret Test Number applied to it. The Drawee branch after getting the Test Number agreed respond the TT firstly crediting the Bills payable TT payable Account and debiting the originating branch and then by crediting the account number of the payee and debiting the Bills payable TT payable Account. So in this way money can be transferred from one place to another within 24 hours.

Pay Order:
Pay order is a guaranteed document issued by the bank, the payment of which is made by the same branch issuing this pay order. Pay order is used to transfer the funds within the city while Demand Draft used to transfer the funds between the city.

Some other function of cash department are given as

Physical verification of cash Issuance of foreign currency notes Issuance of fresh currency notes

Prize bond selling and buying Travelers cheque

CREDIT
It may be defined as The sale of goods and services and money claims in the present in exchange for a promise to pay in future. The most important activity of the bank is the granting of credit to the customers. BOP provides short term, long terms financing for domestic and international trade. Board of directors and Credit committee of BOP design all types of decisions for extending credit and inform about these decisions to the branch managers. Manager can grant the credit limit to each customer with in the declared limits approved by the controlling offices. There is a clear hierarchy that has been approved by Board of Directors circulated through document of empowerment. Banks grant credit to the customers for a certain period of time. The banks provide credit to the customers so that they can purchase ahead of their liability.

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The Bank Of Punjab By giving these facility to the customers large scale production of commodity can be achieved and economic growth rate can be increased. The power to sanctioned loans had been delegated for controlling different offices, according to amount of loan. The Bank of Punjab provides following three types of credits to the customers. ADVANCES GUARANTEE

ADVANCES
Advances provided by bank are of the following two types. FUNDED NON-FUNDED

FUNDED
In fund based bank contributes a large amount of the fund based on clarified as follows. DEMAND FINANCE TERM FINANCE RUNNING FINANCE CASH FINANCE AGRICULTURE FINANCE CONSUMER FINANCE STAFF FINANCE

They are provided primarily to fulfill mandatory credit targets assigned by the State Bank of Pakistan or in return for refinance provided by the S.B.P. The details are as under.

Running Finance:
Among the various modes of Bank Financing, credit lines afforded to customers under the above head (Running Finance) are the most commonly used. Withdrawals on the Current account are allowed in excess of the credit balance which the customer has maintained, thereby creating a Running Finance. Under this type of financial accommodation, the borrower is required to adjust the finance provided by the Bank within the stipulated expiry period. Running Finance facility is given to meet the Working Capital needs of business. Running Finance facility is provided

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The Bank Of Punjab against the Hypothecation of tangible prime securities and collaterally secured against the mortgage of properties i.e. land, building, residential houses etc.

Characteristics:
Running Finance is shown as a debit balance (-ve). It is a multi transaction account. The customer has full liberty to draw money as and when needed. To deposit the same in the account when not needed. The balance may increase or decrease within the finance limit. R.F. Limit can be renewed time and again at the discretion of the bank. Bearing in mind its revolving nature, we can regard it not as a single continuous finance, but as a series of short-term finances. Mark up on Running Finance is calculated on the basis of daily debit balance, which is done automatically by the computer.

Cash Finance:
Cash Finance is also provided on mark up basis, on reducing balance system, as explained in case of Running Finance. It is provided either against pledge or hypothecation of goods, produce or merchandise. The customer would be required to adjust the advance within the expiry period, but could operate the account freely, within the sanctioned limit.

Characteristics:
1Exactly like running finance (R.F.), cash finance is also a multi transaction account. The customer is allowed the facility of withdrawals and deposits of funds at his convenience. 23Just like running finance, cash finance can be renewed. Bank receives return on C.F. on the actual amount utilized on daily balance basis.

4Cash finance generally provided against goods and merchandise like raw materials, semi-finished goods, finished goods, spares, etc5. All the facilities are as running finance.

Demand Finance:
Under the above classified head, a fixed amount of financing accommodation allowed to the borrower for a fixed period, repayable either in periodic installments or in lump sum, at a fixed future date.

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The Bank Of Punjab This accommodation is extended in lump sum for the mutually agreed period and the borrower has to repay the entire amount of finance, together with mark-up at the agreed rate on or before the expiry date.

Characteristics:
1According to terms of the agreement, Demand Finance is repayable on demand but practically its repayment period may be up to 3 to5 years. 2It may be repayable in lump sum or in periodical installments.

3Unlike R.F & C.F, D.F. is a single transaction account. The monthly paid into the account reduces the original finance and is meant to clear the same. The installment once paid cant be taken back, 4In contrast to R.F & C.F. It cant be renewed.

5the return on D.F is received on the full amount of finance for the whole period for which it is provided. 6D.F. is mostly against the security of fixed assets or properties.

Term Finance:
Term Finance is medium and long-term finance. It is for a fixed period and repayable within that period in periodical installments. As we have described earlier bank does not like such finance. It includes the following kinds of finances:

A-Hire Purchase Finance:

It is medium term finance and its repayment period is up to four years. It is for financing Machinery, Vehicles, Equipment, etc.

B-Fixed Asset Finance:

Fixed Asset Finance is medium-cum-long term finance and its period is from 5 to 10 years. It is for financing fixed capital investment in industry and agriculture, like installation of new plant etc.

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The Bank Of Punjab

AGRICULTURAL FINANCE
Purpose of finance:
Four renowned companies of the country such as M/S Ali Akbar Group, Millat Tractors, PSO and Angro Services have established a joint venture company in the name of the Agrimall (Pvt) Ltd to provide agro services under one roof through its Franchisees. The Agrimall (Pvt) Ltd has approached our Bank to provide financial help to their franchisees to establish and run these Agrimall under their specialized management through out the country. We have launched a Kissan Dost Agrimall Finance Scheme. All facilities required by the Franchisees of the Agrimall (Pvt) Ltd will be provided through this scheme. The farmers, who will be the clients of Franchisees, will also be provided production loans through Banks Kissan Dost Agriculture Finance Scheme (For purchase of inputs).

Amount of finance:
The amount of Finance will be 9.5 (M) maximum for all package of facilities mainly as under:

Demand Finance:
Maximum Rs.2.5 (M) for construction of site.

Lease Finance:
Maximum Rs.1.50 (M) for purchase of tractors and machinery.

Running Finance:
Maximum Rs.3.0 (M) for stocks of seed, fertilizers, pesticides and oil etc.

L/C Limit:
Maximum Rs.2.5 (M) for import of pre-engineered construction material for construction of site one time transaction

The Schemes are:

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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-Araz Scheme Kissan Dost Live Stock Development Scheme Kissan Dost Live Stock Scheme Kissan Dost Commercial Agro Services Finance Scheme

CONSUMER FINANCE
The Bank of Punjab also performs some special function in the field of consumer finance. It also maintains the governments accounts. In this regard, various taxes and other central and provisional obligation can be paid in it. It also disburses the salary among the govt. Employees of various departments according to the advice provided by treasury office. It also provides the facility of pension to the retired employees of the government. Along with it BOP launching new and new schemes in consumer finance. Some are as follows:

BOP ASSAISH LOAN:

It is a demand finance loan to purchase specified consumer goods of renowned companies like LG, PEL, Haier, Philips, Samsung, Super Asia, Daikin & Daikool Air conditioners, Raffles Branded Computer Systems on installment basis. 0% Mark up (12 month) 0% Down Payment Free Home Delivery Tenure 12,18,24,36 months

BOP QUICK CASH:

A running finance loan for salaried persons to meet all kinds of personal needs. Limit Rs.50,000 to Rs.200,000 24

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The Bank Of Punjab Markup Rate & Annual Fee Lowest in the market Period one year(further renewable)

BOP CAR LOAN:

A demand finance loan to purchase locally assembled and manufactured cars for personal use. Limit Rs.200,000 to Rs.1,000,000 Down Payment 10% to 20% Mark up Rate Lowest in the market Repayment 3 to 5 years in equal monthly installments

BOP HOUSE LOAN:

A demand finance loan to purchase house/flat or construct house or renovate existing house. Limit for purchase/construct Rs.300,000 to Rs.7,500,00 For Renovation Rs.300, 000 to Rs.3, 000,000 Bank Financing For purchase/construction up to 70% of assessed Value For Renovation up to 20% of assessed value Markup Rate Lowest in the market Repayment For purchase/construction 3 to 15 years For Renovation 3 to 5 years

SME Financing
SME means an entity ideally not being a public limited company which does not employ more than 250 persons (if it is a manufacturing concern ) and 50 persons (if it is a trading concern ) and fulfils the following criteria A trade/services concern with total assets at cost excluding land and buildings up to RS 50 million Manufacturing concern with total assets at cost excluding land and building up to RS 100 million 25

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The Bank Of Punjab Any concern trades services or manufacturing with net sales not exceeding RS 300 million as per latest financial statements

SME Products
CNG Filling Stations LADY Entrepreneur Financing Dealers / Franchising Scheme Motor cycle Dealer Franchising Scheme

CNG Filling Station

Features Their features are Working Capital loan CF facility for 1 year Project Financing Demand Financing facility for 5 years Limit amount PKR 2Million-30Million Markup rate will be based on floating rate

Lady Entrepreneurship Financing

Features Its features are C.F facility to meet working capital requirement Limit amount Rs. 1 million 5 million Markup rate based on floating rate C.F. facility is for 1 year

Dealers/ Franchising Scheme

Features Its features are C.F facility to meet working capital requirement Limit amount Rs. 2 million 20 million Markup rate on floating rate based C.F. facility is for 1 year and renewable of satisfactory conduct of account

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The Bank Of Punjab

COLLATERAL
The security or collateral to taken in giving advances Hypothecation of stocks Owners commercial building Personal guaranties / partners / directors Mortgage of properties

Documents
The document to be obtained from the customer Copy of CNIC Copy of Partnership Deed if partnership firm is apply for facility or Memorandum of Association Copy of Balance Sheet Copy of Financial Statement

NON-FUND
Non-fund base business is the business where the Bank is not involving its funds at the time of sanction of certain facility. But it is contingent liability of the bank & in the case of needs Bank is supposed to honor it promise. GUARANTEE Letter of credit

GUARANTEES
A person to responsible for the debt of another person defines a guarantee. A guarantee is a promise between one person to another person or party to answerable for the debt of the third party. The person provides bank issue guarantee after 100%cash collaterals with 35% in the form of cash. Bank accepts only other bank guarantee but in some cases personal guarantee is also accepted. The guarantee issued is treated as contingent liability. According to local rules and regulation the policy for issuance of guarantee can be charged. Both bank and guarantor can set the expiry of the guarantee. The minimum period is one year and the guarantee can be reissue for extra period with paying charges. The two officers whose signatures appears in the specimen signature book of bank and also counter sign by the controlling office must sign each guarantee. Both officers must also sign any amendment. Am amendment in the guarantee can be made after giving written 27

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The Bank Of Punjab application to issuing branch. If the value of guarantee is reduced by the amendment the liability amount will be reduced and if will value is increased additional liability entries will be passed. The bank provides following types of guarantees to the customers. BID BOND MOBILIZATION BOND PERFORMANCE BOND

BID BOND
The facility provided at the time of bid opening is called bid bond.

MOBILIZATION BOND
When the bid is accepted, the bank provides this type of facility to the customer.

PERFORMANCE BOND
When the project is completed, the contractor about the performance of the project provides a performance certificate for one year. During one year, if there is any mishap in the project the repair otherwise authorities claim the performance charges from the bank. Bank charges commission on issuances of guarantee as per their schedule of charges. If the party did not pay the amount in the stipulated time period, bank puts this case for recovery. If some is recovering then it is good otherwise bank deduct the amount from its profit and starts the legal procedure against the property pledged by the customer to bank

SWOT ANALYSIS
Following are the strengths, weaknesses, available opportunities and possible threats to The Bank of Punjab.

STRENGTHS
Strict adherence with the banking procedures requirements, SBPs prudential regulations requirement and its SROs and international banking requirement as well as to its own set policies. Strong and its attractive products. Better focus on customer services and customerization. Flexibility with the changing environment.

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The Bank Of Punjab Induction of the highly qualified professionals to change overall set up. Focus towards innovative and creative banking.

BOP has tried to move rapidly in expanding branches network and increasing the range of products and services. BOP developing & delivering the most innovative products manage customer experience, deliver quality service that contribute to brand strength, establishes a competitive advantage and enhances profitability, thus providing value to the stakeholders of the bank There is fastest processing. In comparison to other banks BOP providing high excellence services like home, car, agri-financing, which facilitate bank to get market excellence and move towards prosperity and development. Customers behavior shows that they feel proud to being as an account holder in BOP. Customer gives suggestion for the improvement of bank. Bank having good friendly environment, security system concentration like cameras installed and security guards available all the time. Modernized banking system with highly integrated informative system, record kept properly, online banking, and integrated circuits between branches and personal computer provided at every desk. Higher management committed to the development, quality, and continuous improvement. Strong policy and concepts are clear

WEAKNESSES
Process of development is bit slowly due to its conservative approach. Never prefer to be a leader and prefer to be a follower of others Slow improvement and acceptance of technological changes. More emphasis on deposit accumulation and less on their mobilization.

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The Bank Of Punjab Lack of professionalism.

People are not well aware about the products of BOP, it should advertise extensively. Mismanagement of time is another big mistake in BOP branches. Profit rate is higher. Short team No arrangements for staff training. No innovation in IBD product. Weak marketing strategies.
Bound to lease only new vehicles.

OPPORTUNITIES
Greater potential and opportunities for Credit Division if Liberal Policies being adopted. Can grab more market share for its ATMs, RTCs, remittances and forex department through effective promotional and liberal policies. Inclusion of highly qualified professional can change the whole scenario and position of the bank if they have given the due liberty in performing their duties. Adoption of information technology will improve the customer services. More mobilization of accumulated deposit is possible through innovative financing to: A. Agro Based Sector B. Leasing C. Personalized Financing D. Modaraba Business

THREATS
More innovation and creative banking by the local as well as foreign banks like introduction of profit on CD account by ABL other different schemes by UBL and personal financing schemes by banks as well as installation of ATMs and RTCs by

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The Bank Of Punjab these banks have broken the monopoly of the MCB and need development of new innovative and creative product. Introduction of credit marketing by local and foreign banks is badly affecting the mobilization of the BOPs deposits due to the non presence of such department in it. The privatization of other banks is also a threat for the Bank. Due to the

privatization of the different bank e.g. MCB; the competition has increased a lot. Introduction and adoption of information technology as well as promotion of the computer culture by the local as well as foreign banks will definitely affect the services and business of the BOP. Induction of the banking services through E-commerce is a great threat for its survival.

RECOMMENDATIONS
SUGGESTIONS FOR IMPROVEMENT
From the quantum of the profit and its financial data it can easily judged the after privatization The Bank of Punjab is performing well. Its deposits are growing dayby-day and so its profitability. The controlling body is responsible for the productive performance of the bank. Following are my observations and suggestion to improve the efficiency for the development of the bank.

INTRODUCTION OF VARIOUS PROFITABLE SCHEMES

A big portion of the home remittance is sent by Pakistani working abroad through The Bank of Punjab. As we know a big portion of this amount is wasted purchasing of luxuries. The people motivated to save money by offering the deposit through various investment schemes. The rate of profit should increase 1% or 2 % more than the other banks and it would be profitable step for bank.

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The Bank Of Punjab

TRAINING OF STAFF
Staff turnover particularly of trained staff result in financial and other losses. The amount spent by the bank on employment, induction and training of an outgoing officer constitutes to beat till another officer should ready prove his work. The exodus of bank officers in the past has worsened the situation.

CHANGE THE NATURE OF WORK

Most of the bank employees are sticking to one seat only with the result that they become master of one particular job and loose their grip on other banking operation. In my opinion all the employees should have regular job experience all out-look towards banking. Their promotion policy should be adjusted accordingly.

REFRESHER COURSES
Refresher courses for the staff are most important in any international organization. All the employees should have these courses according to their requirement. Foreign experts can also be called for this purpose.

SPECIAL TRAINING ABROAD

Every year some of the employees should be sent for training to other countries and employees from other branches should be brought here. Some more reading material should be provided the purpose should be to educate the employees with the advance studies in their field. The employee should be provided the opportunities to attend and participate in seminars and lectures on banking.

INCENTIVE TO EMPLOYEES
Bank should give some more incentive to its employees in order to remove the conflict between lower and higher officers and should try to improve the working condition of the bank. Such system should be designed that every employee who has some problems with his officers can communicate to the higher management and some steps must be taken to improve that.

COMPUTER SYSTEM
Though The Bank of Punjab installed computer yet the system has not totally shifted on computer. Manual procedure is still there hence computer 32

A Customer Focused Bank With Service Excellence

The Bank Of Punjab facility is not fully availed. It should be fully availed and system should be fully computerized.

REWARD AND PUNISHMENT

It is human nature one goes behind reward and incentives while and try to avoid from punishment. Like wise in commercial institution like bank this system should be introduced with full force means achieve smart, educated skilled, self spoken and well versed staff personal, should be reward and appreciated, while on the other hand lazy, lethargic, heard, rough-dealers and ill mannered must be warned penalized and punished but this all should be on merit and considering the policy of honesty is the best policy and not due to some personal liking, disliking prejudice and patrimonial. It is therefore suggested certain schemes and checks may be introduced in banks to increase efficiency through reward and punishment system.

SURVIVAL OF THE FITTEST

It is not nearly a sentence or idiom right man for the right job according to his qualification, profession skills and experience with the job specification must be considered while posting and placing the employees. It should not be like that a person who may be a very good worker but possessing lack of managerial capabilities should be posted as manager. But as second place in command or some heavy working department wished persons together with managerial qualities and manners in the same fashion should be posted and placed as manager.

OVER EMPLOYED
During my internship period I felt that at some place The Bank of Punjab is over employed which is causing in expenditure. I think that the best way out for this problem is to pen new branches in remote areas and encourages the employees to work for creating the habit of saving in the people.

CUSTOMER PROBLEM
People have to wait for en-cashing their cheques for about 10 to 12 minutes, which is not good for the reputation of bank. This delay is due to manual work. Therefore I suggest that computers and other electronic machines should be installed in the bank so that the time could be saved.

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The Bank Of Punjab

OTHERS
The period of internship should be divided in to the number of department of the Bank of Punjab. The internee should be given timetable mentioning the number of days he has to work at different places in the bank. On the first 4 days in each department internee should be given a lecture the officer of the department concerned about working of the department.

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