INTERNSHIP REPORT ON KASB BANK Submitted By: Nasir Akram F-38026 BBA-19(Session 2008) Bank Supervisor Name: Mr.

Syed Nadeem

Submitted On: 26th Feb 2013

Army Public College of Management Sciences Ordnance Road, Rawalpindi

UNIVERSITY OF ENGINEERING AND TECHNOLOGY TAXILA

Table of Contents
ACKNOWLEDGEMENT ............................................................................................................................ 4 EXECUTIVE SUMMARY .......................................................................................................................... 5 CHAPTER 1 ................................................................................................................................................. 6 a. Company Overview .................................................................................................................................. 6 b.Vision ......................................................................................................................................................... 6 c. Mission ...................................................................................................................................................... 7 Objectives ................................................................................................................................................. 7 We Aim To Be An Organization That Is Founded On ................................................................................ 7 We Shall Work To...................................................................................................................................... 7 We Aim To Be People Who ....................................................................................................................... 7 d. Organization Table.................................................................................................................................... 8 e. List Of Product And Services.................................................................................................................... 9 f. Business Volume ..................................................................................................................................... 10 CHAPTER 2 ............................................................................................................................................... 11 Function Of Department Where Internship Was Done ............................................................................... 11 Structure Of Marketing Department ...................................................................................................... 11 CHAPTER 3 ............................................................................................................................................... 13 Students Role As An Internee.................................................................................................................... 13 1st Month .................................................................................................................................................... 13 a. Account opening department ............................................................................................................. 13 b. Cash department ................................................................................................................................ 14 2nd Month ................................................................................................................................................... 15 Credit department .................................................................................................................................. 15 3rd Month ................................................................................................................................................... 16 Clearing department ............................................................................................................................... 16 Inward clearing ....................................................................................................................................... 17 Outward clearing .................................................................................................................................... 18 CHAPTER 4 ............................................................................................................................................... 19 SWOT Analysis .......................................................................................................................................... 19 STRENGTHS ............................................................................................................................................. 19

WEAKNESSES .......................................................................................................................................... 19 OPPORTUNTIES ....................................................................................................................................... 19 THREATS........................................................................................................................................... 20 Conclusion And Recommendations ............................................................................................................ 21

ACKNOWLEDGEMENT
I am very gratifying to Almighty Allah who permitted me to be trained in a real world organization, KASB BANK, as well as to complete this report in a very limited time. My thanks are also due to the young, dynamic, congenial, and qualified staff of KASB who never let me alone in different situations related to my internship. Without their humble help, it was not easy.

EXECUTIVE SUMMARY

Banking sector owes a pivotal importance in the economy of any country through its vibrant functions. This is the deep seated motivator that geared me up to join any bank for internship. Moreover, the practice and familiarity learned during this tenure would also attest very helpful and alleviating in the awaiting proficient life. This report is an upshot of my three months internship in KASB BANK. KASB posses an imperative and historical importance in the banking sector of Pakistan. It always remained 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. Although, a derisory period of three months is not enough to learn the complex operations of KASB, yet I made industrious efforts to converse them comprehensively in this report. Particularly, I have remunerated more accents on study of distinguishing features and services of KASB. I have made maximum venture to elaborate this report with the material read, listened and observed. I have strong belief that this report will guide and ease the readers to understand the operations of banking system and more prominently have good knowledge about KASB Bank, one of the most trusty and leading banks in Pakistan.

CHAPTER 1

a. Company Overview
KASB BANK maintains its position as Pakistanis premier Bank determined to set higher standards of achievements. It is the major business partner for the government of Pakistan with special emphasis on fostering Pakistanis economic growth through aggressive and balanced lending policies, technologically oriented branches. The KASB BANK came into existence on October 13,1994 as platinum commercial bank and then changed to KASB bank on February 21,2003.It is a semipublic bank and functions like other commercial banks. Therefore it receives funds from the depositors and provides loans/credit facilities in all sectors including trade, industry and agriculture. It also functions as an agent of the Central Bank and operates the treasuries at places where no branch of State Bank of Pakistan exists. The KASB BANK was also nationalized, along with other banks. The Bank of Bahawalpur was also merged into this Bank. An Executive Board composed of six Senior Executives of the Bank and the President who is also the Chief Executive supervises the affairs and business of the Bank. The authorized capital of the Bank is Rs.2500 million divided into 100 million ordinary shares of Rs.10 each. After nationalization, all the shares held by persons other than the Federal Government or Corporations i.e., owned and controlled by the Federal Government were considered as transferred and vested in the Government.

b.Vision
Our vision is that we want to be the preeminent financial institution in Pakistan and achieve market recognition both in quality and delivery of services as well as the range of product offering.

c. Mission
Our mission to be recognized in the market place by institutionalizing a merit and performance culture, creating a powerful and distinctive brand identity, achieving top-tier financial performance, and adopting and living out our core values.

Objectives
o Lowest rates on exports and other borrowings. o Serve the corporate sector and private as well. o Provide agriculture loans also. o Highest rates of return to attract the savings. o Largest contribution towards Government and Semi-Government requirements. o Sale and encashment of Defense Savings and Special Savings Certificate.

We Aim To Be An Organization That Is Founded On

o Growth through creation of sustainable relationships with our customers. o Prudence to guide our business conduct. o A national presence with a history of contribution to our communities

We Shall Work To
o Meet expectations through Market-based solutions and products. o Reward entrepreneurial effort o Create value for all stakeholders

We Aim To Be People Who

o Care about relationships. o Lead through the strength of our commitment and willingness to excel.

o Practice integrity, honesty and hard work. We believe that these are measures of true success.

d. Organization Table
Organizing is a process of breaking down the overall tasks of the enterprise into individual assignments/activities and then getting them put together in units or departments or groups along with the delegation of authority to a manager of a unit/departments/group. KASB BANK organizational structure is given in the following.

Board of Directors

Audit Committee

Executive Committe e President & Chief Executive

Internal Audit

Credit Card

Retail Banking

Corp/Inv Banking

Treasury & FIs

Regions / Areas

Operation s & Credit

Planning & Corp.

Human Resource

Finance

Agriculture Credits

Assets Products

Corporate Banking

Internationa l

Rwp / Islamabad

Credit

Electronic Technology Karachi

East

Compliance & Data

South I

System & Operation s Legal

South II

West

e. List Of Product And Services

Automated Teller Machine (ATM) KASB BANK Credit Cards Major Deposits o Current Deposit. Business Flex o Saving Deposit Mahana Khazana KASB BANK SAMAR o Term Deposit Maheena Asaan KASB BANK SAMAR Lockers Agricultural Finance Home Loans Personal Loans Treasures Visa Debit Card Home Remittance Provides corporate banking Provides investment banking Collection Of Electricity Bills Demand Drafts Mails Transfers Pay Orders Letter of Credit Short Term Investments Equity Investments

f. Business Volume
Year 2006 2007 2008 2009 2010 2011 Assets 26,539 40,891 51,799 59,504 56,711 71,263 Deposits 21,276 33,132 35,087 43,900 46,274 61,263 Advances 14,113 25,143 32,240 29,499 29,528 28,473 Investments 5,049 7,278 9,454 15,970 13,893 16,884 Shareholder Equity 527 887 1,113 1,653 2,182 3,290

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CHAPTER 2 Function Of Department Where Internship Was Done Structure Of Marketing Department
KASB BANK gives the employer variety. The whole bank comprises of committed and dedicated members with passion to serve in their respective functional areas. When I talk about the structure of marketing department in KASB BANK, it is very clear that Business Development Department, Cash Management, Account Opening, Credit Department, Financing Department, Human Resource Department, Consumer Finance Department and the Marketing Departments, Dispatch Departments, Clearing Departments, Account Departments in KASB BANK is a commercial bank. The marketing career path is full of challenges and opportunities. The Bank has absolutely open culture where members share and communicate freely the most important asset of KASB BANK is its people. There are following function of marketing Department Recommend reward and promotion for the employees Focus on the Customer Give equity opportunities for all the applicants. Create New Ideas. Manage a Budget. Communicate Internally. Select the most suitable person for the marketing function. Understand the ROI. For the purpose of selection conduct interviews, tests Own the Brand Set the Strategy, Plan the Attack, and Execute. Monitor the Competition Find & Direct Outside Vendors.

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Marketing operation of KASB BANK bank is to identify the needs and wants of the consumer and provide the right product, right price, right place and right promotions. KASB BANK bank is mainly focus on this points that how to aware the customer on their product and service and how to convert their need into demand and aware the customer or target audience about organization. For this purpose the KASB BANK use different promotion scheme, such advertisement banner through different communication media like internet and newspaper for convey their message to target audience.

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CHAPTER 3 Students Role As An Internee

Detailed description of the tasks assigned to me during the internship program. Duration of my internship was three months in KASB Bank where I learned the detailed work of different departments, I worked in the various departments but I have explained those department in which I got full command during my learning process . The detail of the functions which I performed is mentioned as under

1st Month a. Account opening department

In my first two weeks l worked in the account opening departments. It is important department of the bank because all the working of the bank is based on account and the bank account shows the deposit of the bank. First step is the account opening and my work in the department was to open the new account for a valuable customer and I learned that there were many document which should be used in the opening of new account. There are many type of accounts the KASB BANK is offering to its customer which includes Current account, Saving account, (PLS) Profit and loss account, BBA (Basic Banking Account), these have different specification of the customer which will give benefit to him. For account opening the minimum amount required is 1000 Rs. The document which is used in the opening a new account is as under 1. Account opening form 2. The name of person who request for opening the new account 3. The type of the account 4. Computerized Copy of national identification card 5. Check the expiry date 6. Filled the opening form 7. Signature of the person 13

8. SS Card (Specimen Signature Card) 9. Mother name 10. Father name 11. Present address 12. Permanent address 13. KYC Foam (Know your Customer) 14. CNIC Required for KIN

The most important in account opening is SS Card signature because we identify the customer who withdraws the money is original customer or not, and other step is KYC Form, in this form we collect all secret information like client's Father and mother name, income of the business, his email address, postal address, and contact number. The last one is CNIC, which is required for those person who have a blood relation of client like father, mother, brother, sister.

b. Cash department
During my internship, in 3rd and 4th week I worked in the cash department. Cash department totally deals with cash whether it is moving inside or outside . During learning in the cash department I learned all the activities performed in the cash department . Cash department have various sub departments according to the categories consisting of four to five counters in which include: 1. The issuance the token 2. Receipt counter or the cash deposit counter 3. Payment of cash and checks 4. Verification and clearance the check and account counter 5. Bill and fee receive counter

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The activities of the cash department of KASB BANK is as under 1. Source of cash 2. Management of cash 3. Deposits 4. Demand draft and the online maintains 5. Treatment of surplus cash 6. Treatment of the cash deficit 7. Cash transit 8. Issuance of cash 9. Security arrangements 10. Verification of cheque 11. Receive the bill and the fees collection

This is the most important department of the bank which maintains the cash flow and it is the most sensitive section because it requires intense care without any mistake.

2nd Month Credit department

In 2nd month of my internship in credit department which is the most important. The credit department deals in maintaining loan and credit, issuing credit after necessary verification, security and guarantee up to the desired limit and there are rules and the regulation to issue credit and loan. Credit department of KASB BANK deals with different type of running finance and the type of loans mentioned as under Cash finance Demand finance 15

Term finance Short term and long term loan

Following information is required for credit and loan, which is as under 1. Name of the customer 2. Copy of CINC 3. Expiry date of the CNIC 4. Date of birth 5. Complete address 6. Income of the customer If the individual wants to take the loan from the bank then there is the limits of the loan is which provided by the bank to any person or the organization. Following documents and guarantee is required by the bank according to the loan type the requirements are as under 1. Account number of the borrower and the account type 2. Nature of the business and the main products 3. Name of the borrower 4. Purpose of the loan whether it is for partnership or proprietor business 5. Type of the business 6. Details in case of firm and companies associated with the loan 7. And the current financial position of the business 8. And the accurate financial statement of the business last two years or more 9. And the detail of the borrowers bank account with other banks

3rd Month Clearing department

My 3rd month was all about the clearing department. I learned the work and the functions which are performed in clearing department. This also is the important department of the bank in 16

which I learned that clearing is the process in which bankers settle their mutual accounts by claiming arising account of various instruments presented by one bank drawn from other banks in a same city or from trough NIFT (National Institutional Facilitation Technologies). NIFT is the department of collection of clearing cheques of each branch, this plays as middlemen between the bank and client. There are two types of clearing going in bank, Inward clearing and the Outward clearing . We can say that the clearing is to clear those cheque which cannot be cashed at the cash counter of the bank . The representative of the respective bank collects all the cheques and the instrument which drawn on there and settle the account and do the clearing function. This assembly of representative of the bank is called Clearing house NIFT perform the clearing on the behalf of the commercial banks in all the cities throughout the country. Types of the clearing is as under Inward clearing/ Local clearing Outward clearing/ Intercity clearing

Inward clearing
The instrument and the settlement or the claim by the other banks or by other branches of KASB BANK on our branch of KASB BANK which includes the cheque draft and etc, are drawn from other bank customer or from KASB BANK branches clearing the inward clearing process. There are few things included which are mentioned as under 1. Cross stamp on the face 2. Clearing stamp on the front and the back 3. The clearing stamp bearing the date of the next working day 4. Payees account is credited and the stamp on the cheque and signature of the operational manager 5. And before entering the cheque into the computer the stamp and the signature is to be verified and the cheque is posted and drafted.

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Outward clearing
I leant about outward clearing in KASB BANK clearing department. Outward clearing is the settlement of claims of our branch of KASB BANK or the other branches of KASB BANK drawn from other banks or other branches of KASB BANK deposited by our customer in our branch, presented by our branch of KASB BANK in out ward clearing . When cheques of outward clearing is received then it is entered into the clearing registers. Following details are entered in both registers, as follow 1. Serial No. 2. Account no. of the depositor 3. Depositor name 4. Drawer 5. Drawee 6. Cheque No. 7. Amount of the cheque 8. Cross stamp on the face of the cheque 9. And the clearing stamp 10. And the stamp on the back of the check payee account will be credited

The local clearing, a bundle cover is arranged including the branch code stamp, total amount and number of instruments. This amount should match the one that is kept in the Clearing Register. The cheques or the instrument with bundle cover and outline are packed in NIFT bag. Before putting these items in the bag, a plastic seal number is required and should be written on the bundle cover and the same seal should be used to close the NIFT bag. This is to ensure additional safety as when the seal is opened, it is non-replaceable. If the seal number on the bag and on the bundle cover does not match, it is a suggestion that the bag has been tamper with. Strict action can be taken by NIFT and the Bank consequently

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CHAPTER 4 SWOT Analysis STRENGTHS

Proven Management Strong Market image Product innovation ability Adequate financial resources Suitable location ATM (cased facility) Online facility Loan under proper security No defaulter

WEAKNESSES Work over load on staff Time miss management Too much centralized operation Rules violation Excessive emphasis on cost effective High management expenses Lack of employees in the bank Influence of army officer in the bank exploitation of other customers

OPPORTUNTIES
Rapidly growing economy Govt. incentives for banking sectors New bank technologies (SWIFT, ATM) credit card etc. 19

 Avail new promotional activities Computer technology improvement Potential in market Qualified individuals and banking professionals available to be taken use of if required. Opportunity in consumer financing Decentralization of operation Covering the entire world

THREATS
Cut throat competition Customer awareness about other banking substitute available in the market Customer exploitation of excessive competition among bank Other banks timing, cooperativeness, facilities attract the customers Some time rules violation against relationship occurred, customer are preferred as compared to the rules and regulations

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Conclusion And Recommendations

Untrained staff results in financial losses. Therefore it is very much necessary that bank should provide basic training to the employees which their work performance and is ultimately fruitful for the organization. Most of the bank employees are sticking to one set only, which results that they become master of one particular job and lose their grip on other banking operations. In my opinion all the employees have to rotate to different job so they know all the banking operations. Bank should give more incentives to employees in order to remove the conflicts between lower and higher officer and improve the working conditions of the branches. A system has to design that every employee who has problem with his senior officer can communicate it to redress his grievance. The Bank must introduce the check and balances to increases efficiency through reward and punishment system. Right man for the right job, according to his qualifications, professional skills and experience with the job specifications 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 have to posed as manager, but placed as second in command of on some heavy working department.

The Bank must send their employees to National Institute of banking and Financial Institutions (NIBAF) at Islamabad to keep them abreast with modern banking operations and procedures.

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