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Cultura Documentos
BANK OF PUNJAB
(PASSION REBORN)
Internship Report
(2014)
Internship Report
Bachelors in Business Studies program
Name:
Reg. #:
Specialization:
Telephone:
E-mail:
Institution:
Umair Shaukat
FA13-BBS-011
Finance
0312-5337918
umairshaukat15@gmail.com
COMSATS Institute of Information Technology
Company Name:
Main Telephone #s:
Postal Address:
Supervisor Name:
Telephone Number:
Faheem Nazeer
0321-5091872
02 -July- 2014
30 -August- 2014
Report Date:
11-December-2014
051-4545148, 9, 4542150
Chock Sarai Kala, G T Road, Taxila
EVALUATION
Umair Shaukat
Completed Internship at
Bank of Punjab
Internship report submitted for the final Evaluation in Partial Fulfillment of
the requirements for the Degree of
1.
____________________________________________
2.
____________________________________________
3.
____________________________________________
4.
____________________________________________
ACKNOWLEDGEMENTS
All Praises to Almighty Allah (The most merciful the most beneficial), who helped me to
complete my Internship program and the report in spite of various difficulties. I would
also like to acknowledge my debts to those officers of Bank of Punjab who have been
extremely helpful for me.
Faizan, Mr. Javaid Ahmad, Ms. Samina BiBi, Mr. Habib-ullah chudary, and Mr. Abdul
Rasheed for the helpful hand they extended towards me at any time.
In short, I would always be thankful to all the managers and officers, for their courteous
and compassionate treatment given to me.
Thanks to all
PREFACE
For a Business Graduate the understanding and memorizing of some concepts during a
degree is not only the knowledge enough for him but its practical implementation or
observation of practical implementation makes it almost a complete knowledge.
After the completion of internship program, internship report has been prepared just in
accordance with the practical exposure.
Umair Shaukat
CONTENTS
EXECUTIVE
SUMMARY
CHAPTER 1 :-
1.2
1.3
1.4
1.5
1.6
CHAPTER 2 :-
2.2
2.3
2.4
2.5
Internship policy
CHAPTER 3 :-
Products
3.2
Services
CHAPTER 4 :-
Customer Services
4.2
Account Opening
CHAPTER 5 :-
Ratio Analysis
5.2
Horizontal Analysis
5.3
Vertical Analysis
CHAPTER 6 :-
6.2
CHAPTER 7 :-
Conclusion
7.2
Recommendations
BIBLIOGRAPHY
APPENDIX
EXECUTIVE
SUMMARY
Banks do play a central role in the development process. They being the channels,
through which the savings of the society pass from savers to investors, transform surplus
resources into productive investments. Bank of Punjab being the same but one of the
government banks of Pakistan.
My internship report on the bank of the Punjab consists on various dimensions, which I
have learned through my observation, interviewing the bank officers and customers
during the internship period. For more accurate and up to date data, I took help from the
internet as the websites used are mentioned in Bibliography.
This report includes the background information of the bank, its emergence through
different phases, its present status and the vision and mission with core philosophies
adopted by bank of Punjab. This study mainly relates the commercial banking rather than
the Islamic banking of Bank of Punjab. By studying the Annual statement of BOP, I have
done the financial calculations and then by examining the most related reasons going
around for changing trends in calculations, i have done the financial analysis to my best
understandings. Finally, the conclusion and recommendations are given at the end as per
my best knowledge and understandings of Bank of Punjab.
CHAPTER 1 :-
11
Achievement Award
The Lahore Chamber of Commerce & Industry (LCCI) awarded the Bank "LCCI
Achievement Award" 2006.
Educational Institutes
Agriculturists
WAPDA
Pharmaceutical Companies
12
WASA
MDA
Branch Network
The Bank continued the strategy of growth and to extend the outreach to every corner of
the country, 28 new branches were opened during the year 2013 making the overall
branch network 334 with most of the branches opened in traditionally neglected areas to
provide banking services and to capitalize on market potential. The bank strived for
improving its ATMs network by increasing the number to 166, just to provide 24/7
banking services to the customers.
Multan Region
Faisalabad Region
Gujranwala Region
Gujrat Region
13
Peshawar Region
Bahawalpur Region
Islamabad Region
Rawalpindi Region
Jhelum Region
Sialkot Region
Sheikhupura Region
Vehari Region
Sahiwal Region
Jhang Region
Sargodha Region
Karachi Region
Credit Ratings
Credit rating by PACRA (Pakistan Credit Rating Agency) rated bank of Punjab is AA
Long Term and A1 Short Term. Both ratings are investment grade and denote very high
credit quality and very low expectation of credit risk.
Strategic Focus
The Bank continued the strategy of growth and to extend the outreach to every corner of
the country, 28 new branches were opened during the year 2013 making the overall
branch network 334 with most of the branches opened in traditionally neglected areas to
provide banking services and to capitalize on market potential. The bank strived for
improving its ATMs network by increasing the number to 166, just to provide 24/7
banking services to the customers.
During the year 2013, The Bank of Punjab entered into a new era by introducing Islamic
Banking Operations. Now, BOP has 7 fully functional online Islamic Banking Branches,
offering a range of Shariah Compliant products and services to its clients. Besides
14
Future Outlook
The bank will continue to invest in banking innovations, which include Islamic Banking,
Leasing, Home Loan and other areas of Product development to provide higher levels of
service and value to the clients. With these developments Bank of the Punjab will
continue to embark on its strategy of network enhancement and deposit mobilization.
Excellence in Service
Quality Performance
Product Innovations
Our Customer
Profitability
15
Excellence
Integrity
Respect
Vision Statement
To be customer focused bank with service excellence..
Mission Statement
To exceed the expectation 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 products and
services in the agriculture and middle tier markets through a motivated team
16
Home Loans and other areas of product development to provide higher levels of services
and value to the clients.
CHAPTER 2 :-
Board of Directors
At the top of the human resource hierarchy sits the Board of Directors and Executive
Committee. The most important task of this level of management is strategic planning,
determining the goals and objectives and to formulate the policies.
Top Management
Top management mostly involves strategy formulation, technical planning, determining
how to best get the job done and control. Chief Managers and Branch Managers are
17
18
ORGANIZATIONAL HIERARCHY
The Chairmen
BOARD OF DIRECTORS
Executive Committee
EXECUTIVE INCHARGES
Area Manager
(North)
Area Manager
(South)
19
Designation
Chairman
Director
Secretary Finance/
Director
Director
Director
Director
Director
Director
Director
20
Deputy CEO
Group Head, HR
Mr. Irfanuddin
GroupHeadoperations
Corporate Information
Mr. Hamid Ashraf
Company Secretary
Auditors
BOP tower,
Head Office
21
In Taxila branch bank of Punjab there exists bureaucracy I that means there exists
Division of labor (jobs are broken down into routine well define tasks)
Formal Selection
Career orientation (Manager are career professional not owner of units they manage)
The organization structure and have following characteristics:
High Specializations.
Rigid departmentalization
Centralization
High Formalization
22
2 Mr. Faheem-Bin-Saleem
Designation
AVP
Branch Manager
Manager Operations
4 Mr.Habib-Ullah-Ch
Manager Operations
5 Mr. Nasir
OG-II
OG-II
8 Mr. Javaid
Incharge Accounts
Casher
23
24
General Provisions
(I) Duration of Internship
Up to maximum of two month
(II) Eligibility
Candidates for internships should be graduates or should be studying
For a graduate degree.
(III) Monthly Stipend
A stipend of Rs. 1,000/- per month shall be paid to interns upon
Completion of the internship period. Non-graduate student if accepted
for internship will not be eligible for any stipend.
(IV) Issuing Internship certificate
Internship Certificate is an official document and may only is issued under
the signatures of Branch Head or authorized officers. Copies of Internship
Evaluation Form and Internship Certificate should be retained in Branch/Unit
files for future reference.
25
1.
Deposits
Current Account
Individual Account
Joint Account
Partnership Account
SNTD
TDR
2.
Remittances
Remittance is a major function of the bank. It is the transfer of money from one place to
another place. The need for remittance is commonly felt in commercial life particularly
and in everyday life generally. By proving this service to the customers the Bank of
Punjab earns a lot of income in the form of service charges
Pay Order
26
27
28
PAY ORDER
A pay order is a written order issued by the bank on its own branch, drawn upon and
payable by itself to pay a specified sum of money to the person. The purpose of a pay
order is to transfer the fund from one place to another. It is usually not issued in favor of
the parties of other cities. Usually the pay order is issued for the local transfer of money
from one person to another or from the person to any other department. It is used for
different purposes. The purpose may be the repairs of the branch or renovation of the
branch.
PROCEDURE
The procedure of a pay order varies with the nature of the purpose. If the work is of huge
amount then first the manager writes a letter to the Zonal Chief in order
toget sanction of the work. Then the advertisement of the work is given in thenewspaper
in order to invite the contractors. But if the work is small then the branch
managerhasdiscretionary power to select the party whose rate is lowest. After finishing
the work the contractor submits the bill of work on his stamp pad. Then the bank issues a
pay order, against the pay order the contactor gets the amount from the issuing branch
3.
Lockers
4.
ATM cards
Master
Golden
5.
Financing Services
Consumer Finance
Demand Finance
Agriculture Loan
I. Consumer Finance
29
2. Demand Finance
A Customer having 17 scales can avail this loan up to 25 basic salaries
30
3.2 SERVICES
1. ATM facility.
2. On-line banking.
3. E-banking.
4. Debit Card.
5. Consumer Financing.
6. Agricultural Financing.
7. Corporate Financing.
8. Commission free remittance.
9. Zarco exchange remittance.
10. Collection of utility bills.
11. Lockers Facility.
12. Download scheduled of charge.
13. Download account opening form.
14.UAE exchange payments.
1. Online Banking
Today the competition is based on the innovation. The one who brings a product or
service prior to its competitors gets an edge. The role of technology is very important as
far as the innovation is concerned. The Bank of Punjab proudly offers the online banking
facility to its customers. It is our commitment to provide the latest technology based
services to our customers. Online banking is one of the many services that we are going
to introduce.
2.
E-banking
Not only online banking, but also through E-banking you can avail a wide range of
services by just staying at your office or home. BOP is planning to introduce Mobile
banking facilities to its customers in near future.
3.
Debit card
31
In our endeavor to provide you versatile banking options to fulfill your financial
needs, , a Debit Card which gives you unlimited access to your current / savings account
with a simple swipe at millions of retail shops and ATMs worldwide. The BOP ATM
debit comes with a host of conveniences and benefits combined with the wide reach of
Visa Network.
5.
E-Banking
6.
Consumer Financing
In consumer finance Gov. employ, business man, Gov. semi employ can take house hold
product
7.
Agricultural Financing.
32
Electricity
Gas
Water
Property
Telephone
9. Lockers Facility
BOP Provide Lockers Facility to customers
Discover peace of mind, enjoy personalized service and operate your locker in friendly
and pleasant environment at The Bank of Punjab.
Types
Small
Medium
Large
Extra large
33
ATM Facility
On-Line Banking
Demand Drafts
Letter of Credit
Pay Order
Mail Transfer
Debit Card
ATM Facility
Through the ATMs Customers have access to the various services such as withdrawal,
balance enquiry and mini statement? Complete security is ensured because access to the
account is only possible by entering a four digit personal identification number (PIN)
known only to the account holder. Cash withdrawal limits up to Rs.20, 000 per day.
Annual charges of ATM is Rs.250/- per card.
On-Line Banking
BOP is currently offering window-based online banking to its customers, which gives
access to information on their accounts and the liability to act on the latest information
received over the net.
Demand Drafts
BOP provides safe, speedy and reliable way to transfer money at vary reasonable rates.
Any person whether an account holder of the bank or not, can purchase a Demand Draft
from a bank branch
Letter of Credit
BOP is offering its business customers the widest range of option in the area of money
transfer. BOPs letter of credit service is with competitive rates, security, and ease of
transaction, BOP Letter of credit is the best way to do the business transactions.
Pay Order
BOP provides transfer of money using different facilities. Its pay orders are asecure and
easy way to move the money from one place to another. The charges for this service are
extremely competitive.
34
35
CHAPTER 4 :-
On the very first day of internship, I was advised by Mr. Faheem Nazeer (The Operations
Manager) that I should start my session from the Credits Department I remained there for
approximately two weeks.
Credit department is one of those core departments that are helping BOP Taxila branch to
earn huge revenues. I was very much pleased to hear this as I had a great desire to work
and learn something regarding Credits. In this department I have done work in personal
loans and Home finance.
So, I was sent to Mr. Faheem Bin Nazeer, Manager, who is a very nice and
helpful hand for me. I was then advised by Mr. Faheem to work with Mr. Faizan Husain.
36
CUSTOMER FINANCE
The Bank of Punjab Taxila provides the customer finance facility to Gov. employ,
business man, Gov. semi employ can take house hold product This facility is provided
only by Bank of Punjab Taxila branch and generate too much revenue.
Following steps must be taken while giving a loan facility
Credit line proposal which contain detailed information about the individual.
Undertaking of institute and personal guarantee that the money is pay back by the
individual.
Insurance of individual.
Letter of installment tells in how many installments the loan will be recovered.
Amortization schedule provide information about number of installments in
HOME FINANCE
After one and a half week .I was moved to Home finance department. Mr. Faheem is
incharge of Hone finance as well as Customer relationship Manager. Mr. Faheem Nazeer
incharge of agri finance but supporting in Home finance also. From these both officers I
learnt much about this department.
37
38
Copy of CNIC.
Recent photographs.
CIB report.
Lawyers opinion.
39
Types of accounts
The types of accounts, which can be opened by a customer, are as under:
Partner Ship
Corporate
40
Current account
Tijarat accounts
Gharayloo account
Current Accounts
Following are the main features of current account:
Free debit card can be used to withdraw cash and make purchases at
thousands of outlets across Pakistan which provides access to funds 24
hours a day.
For online funds transfer service charges of Rs. 50 plus withholding tax
are debited in the current account holders account.
41
Free debit card can be used to withdraw cash and make purchases at
thousands of outlets across Pakistan which provides access to funds 24
hours a day.
Services charges on online funds transfer are Rs. 100 plus withholding tax.
MUNAFA HI MUNAFA
This a/c is open with minimum amount of 01 lake. On this a/c profit is monthly
basis and profit will be credits in youre a/c automatically
Initial deposit for account opening is Rs. 1,000 with no minimum BOP
requirement.
Free debit card can be used to withdraw cash and make purchases at
thousands of outlets across Pakistan which provides access to funds 24
hours a day.
Any Pakistani resident over the age of 18 can open this account. This
account is for individual/joint customers only. Other customers like
companies, corporate etc are not eligible for opening of this account.
Minimum BOP requirement for opening this account is Rs. 10,000/- with
a maximum of Rs.1, 000,000/-
42
Limited Company:
Memorandum of Association.
List of Directors.
Partnership:
43
FINANCIAL ANALYSIS
To analyze the financial position of BOP, different tools are use, which includes Ratio
Analysis, Common size Analysis of the last five years. Importance of Financial Analysis
IMPORTANCE OF FINANCIAL ANALYSIS
Financial analysis involves the use of various financial statements. These statements do
several things. First the balance sheet and the second is income statement. The balance
sheet summarizes the assets, liabilities, and owners equity of a business at a point in
time, while the income statement summarizes revenues and expenses of a firm over a
particular period of time. A conceptual framework for financial analysis provides the
analyst with an interlocking means for structuring the analysis.
CHAPTER 5 :-
2013
2012
2011
2010
2009
7.90%
7.07%
14.20%
-222.0%
-645.0%
INTERPRETATION:
44
2013
2012
2011
2010
2009
0.62%
0.65%
0.12%
-1.94%
-5.28%
INTERPRETATION:
Bank of Punjab has received more deposits as well the increased markup, hence profit
has increased more rapidly as compared to deposits.
2013
2012
2011
2010
2009
1.12%
1.16%
0.023%
-3.0%
-8.32%
INTERPRETATION:
This ratio shows how much profit the bank is earning from the total advances given for
earnings. Profit has been earned upon advances but as compared to previous years there
is a slight increase in profits with respect to advances but in 2013 it is a decrease.
45
2012
2011
2010
2009
0.0142
0.0134
0.0003
0.0717
0.174
INTERPRETATION:
The ROI shows how profitable a company's assets are in generating revenue.
I.e. how many rupees of earnings they derive from each rupee of assets. This ratio for
Bank of Punjab is high of this year because of higher profits earned this year by the bank.
Return on Equity =
2013
2012
2011
2010
2009
14.2%
14.1%
2.7%
-11.20%
-16.40%
INTERPRETATION:
ROE measures the rate of return on the owners equity of the common stock. It measures
a firm's efficiency at generating profits from every rupee of net assets, and shows how
well a company uses investment rupees to generate earnings growth. As we can see that
this year the equity of the shareholders has been utilized efficiently as compared to
previous years.
46
2013
2012
2011
2010
2009
25.20
25.84
25.34
62.47
34.31
INTERPRETATION:
This ratio shows the capital structure of the firm that how leveraged is the firm. This year
it is a green signal as debt ratio has been decreased.
2012
2011
2010
2009
0.96
0.96
0.96
0.98
0.97
INTERPRETATION:
This ratio is a measure of debts of a company as compared to its total assets. As banks
deal in debts so if banks increase with the passage of time, its advances should also
increase in parallel. This ratio for bank of Punjab has been quite consistent over the years
and quite equal to it s total assets. If these debts are increasing then these should be
properly utilized so that total assets can also be increased in parallel. But the management
should try to decrease this ratio in upcoming years.
47
2012
2011
2010
2009
0.0718
0.12
0.97
-0.099
0.091
INTERPRETATION:
This ratio shows the portion of the profit or net income paid to the shareholders in the
form of cash dividend. As the net income of 2013 has increased but ratio has decreased,
the main reason is that this year bank has issued stock dividend to shareholders instead of
cash dividend.
2012
2011
2010
2009
0.068
0.074
0.073
0.079
0.072
INTERPRETATION:
48
2012
2011
2010
2009
0.039
0.038
0.039
0.016
0.029
INTERPRETATION:
This ratio shows the comparison of equity to total liabilities. This year increase in ratio
shows more utilization of equity.
2012
2011
2010
2009
0.51
0.56
0.53
0.58
0.63
49
INTERPRETATION:
This ratio shows the outflow versus the inflow of cash in the form of advances and
deposits respectively. As the ratio has slight change due to increase in deposit but in 2013
it slightly decreases.
/ Deposits
2013
2012
2011
2010
2009
0.091
0.076
0.085
0.085
0.079
INTERPRETATION:
This ratio shows comparison of how much our cash is deposited against deposits of
others in our bank. In 2007 our deposits were higher than our clients.
2012
2011
2010
2009
0.077
0.065
0.53
0.070
0.068
INTERPRETATION:
This ratio indicates the reserve which a bank has maintained against the deposits of others
(customers). The reserve for deposits has increased as compared to previous year.
50
Horizontal analysis is a technique for evaluating a series of financial data over a period of
time to determine the amount and percentage increase OR decrease that has taken place.
Actually this analysis shows the trend in performance and position of the company over
the number of years which makes it easy to understand and compare the performance of
the concern.
I have used the financial statement data years 2009-2013 and compared the each item of
the financial statements and showed the Banks trend from one year to another.
51
Horizontal Analysis
BANK OF PUNJAB
Balance Sheets
Balance sheet
Assets
cash and balance with treasury banks
balance with other banks
lendings to financial institutions
investments
advances
operating fixed asset
differed fixed assets-net
other assets
Liabilities
bills payables
borrowings
deposits and other accounts
sub ordinated loans
liabilities against assets subject to financial
lease
deferred tax liabilities
other liabilities
Presented by
share capital
discount on issue of shares
reserves
accumulated losses
share deposited money
surplus on revaluation of assets -net of tax
2013
2012
2011
2010
2009
182.62
195.14
1082.76
214.03
129.63
102.55
105.92
274.22
162.8
132.62
14.19
148.35
223.66
123.3
101.35
109.64
251.02
153.31
128.02
165.03
706.88
159.68
104.78
104.97
116.49
278.16
129.66
107.87
149.89
693.81
97.3
99.58
103.13
117.97
168.46
106.14
100
100
100
100
100
100
100
100
100
172.03
162.41
160.62
0
11.99
171.39
318.26
139.4
0
18.09
97.14
177.8
124.65
0
39.34
66.36
82.1
109.07
0
69.76
100
100
100
0
100
0
177.54
161.15
0
159.47
151.9
0
138.49
128.41
0
111.12
121.39
0
100
100
199.53
-43.91
-14.03
249.98
85.67
228.66
100
220.8
116.14
138.97
2635.54
195.5
100
356.09
129.23
154.68
2635.54
182.59
100
374.22
131.35
-15.76
1550.32
52.63
100
100
100
100
100
100
140.23
219.36
254.01
201.65
98.83
173.78
111.78
58.84
100
100
52
Horizontal Analysis
BANK OF PUNJAB
INCOME STATMENT
PROFIT AND LOSS ACCOUNT
2013
2012
2011
2010
2009
Markup/returned/interest earned
Markup/returned/interest expense
Net mark up /interest income
Provision against non-performing loans
and advances-net
Provision for diminutions in the value of
investments-net
Bad debts written off directly
154.88
106.24
118.72
-7.28
157.68
118.40
63.26
-10.45
132.23
110.78
-11.57
-34.24
116.48
98.84
-17.27
6.06
100
100
100
100
2.30
22.55
60.33
289.55
100
0.00
-6.38
-34.36
0.00
-7.35
-21.28
0.00
-25.38
-16.17
0.00
32.63
28.80
0
100
100
118.03
14.93
59.55
-1120.33
116.04
24.00
65.83
-1166.97
110.25
31.16
64.66
-265.64
85.60
43.88
54.32
-236.08
100
100
100
100
360.10
221.55
162.12
-72.73
-722.55
112.98
143.81
-53.52
451.22
95.29
89.68
-36.85
-1510.48
91.23
83.63
17.83
100
100
100
100
171.29
0.00
0.00
5934.89
173.89
-20.68
0.00
-20.77
146.06
0.00
0.00
-5112.09
150.22
-10.52
0.00
-10.56
130.31
0.00
0.00
25.82
0.00
-25.81
0.00
-3.28
113.06
0.00
0.00
202.14
0.00
-29.01
0.00
43.25
100
0
0
100
100
100
0
100
53
0.00
-17.91
-24.70
-18.97
166.05
-921.09
-8.07
5.34
-17.28
184.77
0.01
-3.99
-4.06
-2.92
187.79
1.86
49.21
50.07
40.09
135.06
100
100
100
100
100
-11.29
-2.40
0.00
100
0.00
0.00
0.00
100
0.00
90.24
95.00
100
5222.61
12286.17
-14.12
-14.12
5217.76
13670.85
-2.81
-2.81
3736.40
13894.63
38.44
38.44
100
100
100
100
54
55
VERTICLE ANALYSIS
BANK OF PUNJAB
BALANCE SHEET
Balance sheet
Assets
cash and balance with treasury banks
balance with other banks
lendings to financial institutions
investments
advances
operating fixed asset
differed fixed assets-net
other assets
Liabilities
bills payables
borrowings
deposits and other accounts
sub ordinated loans
liabilities against assets subject to financial lease
deferred tax liabilities
other liabilities
Presented by
share capital
discount on issue of shares
reserves
accumulated losses
share deposited money
surplus on revaluation of assets -net of tax
2013
2012
2011
2010
2009
7%
1%
3%
35%
45%
1%
4%
4%
100%
5%
0%
0%
39%
45%
1%
4%
4%
100%
6%
1%
3%
33%
45%
1%
5%
6%
100%
6%
1%
3%
25%
53%
2%
6%
4%
100%
6%
1%
0%
27%
56%
2%
6%
3%
100%
11%
169%
2278%
0%
0%
0%
62%
2521%
0%
78%
-2%
11%
-84%
4%
93%
0%
7%
100%
12%
361%
2151%
0%
0%
0%
61%
2585%
0%
43%
10%
-103%
-51%
137%
87%
0%
13%
100%
8%
234%
2231%
0%
0%
0%
61%
2535%
0%
50%
18%
-133%
-65%
159%
94%
0%
6%
100%
16%
319%
5767%
0%
0%
0%
145%
7078%
0%
146%
56%
-399%
20%
277%
80%
0%
20%
100%
14%
229%
3111%
0%
0%
0%
77%
3431%
0%
86%
9%
-179%
-74%
11%
89%
0%
11%
100%
56
VERTICLE ANALYSIS
BANK OF PUNJAB
INCOME STATMENTS
PROFIT AND LOSS ACCOUNT
2013
2012
2011
2010
2009
Markup/returned/Interest earned
Markup/returned/Interest expense
Net mark up /Interest income
Provision against non-performing loans and
advances-net
Provision for diminutions in the value of
investments-net
Bad debts written off directly
100%
83%
17%
-3%
100%
91%
9%
-4%
100%
102%
-2%
-15%
100%
103%
-3%
3%
100%
122%
22%
59%
0%
1%
3%
15%
6%
0%
-3%
19%
0%
0%
-3%
12%
0%
0%
-13%
11%
0%
0%
18%
-21%
0%
0%
65%
-87%
0%
3%
1%
1%
6%
0%
0%
5%
15%
34%
3%
1%
1%
6%
0%
0%
2%
13%
25%
4%
1%
1%
2%
0%
0%
2%
10%
20%
3%
2%
1%
2%
0%
0%
3%
10%
-11%
4%
6%
2%
-1%
0%
0%
3%
14%
-73%
21%
0%
0%
0%
22%
12%
0%
0%
18%
1%
0%
0%
19%
6%
0%
0%
19%
0%
-1%
0%
0%
18%
0%
0%
19%
0%
4%
0%
0%
23%
0%
0%
19%
0%
0%
0%
19%
-92%
0%
0%
57
12%
1%
0%
3%
4%
8%
-53%
6%
1%
-3%
1%
-1%
7%
-57%
2%
0%
0%
1%
1%
1%
-70%
-34%
0%
0%
-12%
-12%
-22%
-57%
-92%
0%
1%
-28%
-28%
-65%
-49%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
-2%
0%
0%
-1%
0%
0%
0%
0%
0%
0%
0%
0%
19%
29%
0%
-54%
-47%
0%
0%
-59%
-52%
0%
0%
-70%
-69%
0%
0%
-57%
-79%
0%
0%
-2%
-1%
0%
0%
CHAPTER 6 :-
58
SWOT analysis is an acronym that stands for strengths, weakness, opportunities, and
threats SWOT analysis is careful evaluation of an organizations internal strengths and
weakness as well as its environment opportunities and threats.SWOT analysis is a
situational which includes strengths, weaknesses, opportunities and threats that affect
organizational performance. The overall evaluation of a company strengths, weaknesses,
opportunities and threats is called SWOT analysis In SWOT analysis the best strategies
accomplish an organizations mission by:
SWOT analysis is one of the most important steps in formulating strategy using the
organization mission as a context; managers assess internal strengths distinctive
competencies and weakness and external opportunities and threats. The goal is to then
develop good strategies and exploit opportunities and strengths neutralize threats and
avoid weaknesses
STRENGTH
The Bank officers of BOP are considered as one of the most able professionals in the
banking world. However, they have added some local flavor in accordance with their
targeted segmented. In my observation that they interact with their clients as if they are
their personal friends and discuss about their problems as their own.
As a result of the compassionate and personalized services of the officers, the
clients perception for BOP is very high. They have trust and feel themselves to
be secure while dealing with BOP.
BOP has opened all its branches at commercial areas so that the customers or
clients face no problems in reaching to the bank.
BOP has got a reliable and easy to use internal computer system. Every
information regarding the transactions in customers deposits has been
computerized. Data are properly maintained.
Good security system
Not excellent but good facilities are given to employees
WEAKNESSES
Lack of proper internal controls is one of the major weaknesses of BOP. It is also pointed
by the auditor in his review.
59
BOP has formulized a lot of products and services for its customers, even more
than other commercial banks, but any advertisement on electronic media has not
been seen.
I observed during my internship that some of the employees were burdened with
over work. So I think that the work should be distributed according to their post
and capabilities.
Biased selection of employees
OPPORTUNITIES
Satisfy dynamic consumer needs, BOP has made significant in roads in its entire service
spectrum. A lot of products have been introduced especially in Retail Banking
(Agriculture side) and people are increasingly becoming loyal to the bank and because of
feasible transactions. Optimum pricing and branding strategies of the bank are helping to
make customer feel secure and convenient.
All the opportunities of the 21st century are to be availed in the information
technology. Information technology is the future of this dynamic world. Therefore
BOP should emphasize much on IT, especially on E-Banking. Bank can design
universal account like other foreign banks, to enhance online facilities.
THREATS
Despite the difficult circumstances that confronted the banking sector in particular and
the country in general, BOP has been still highly profitable. But, the facts cant be denied
and there might be an adverse impact of such situation.
60
I.
PROFESSIONAL TRAINING
BOP staff lacks professionalism. They lack the necessary training to do the job efficiently
and properly. Although staff colleges are in all major cities of the Punjab but they are not
performing well. For this purpose these staff colleges should be reorganized and their
syllabus should be made in such a way which can help the employee understand the everchanging global economic scenario. Banking council of Pakistan should also initiate
some programs to equip the staff with much needed professional training.
II.
DELEGATION OF AUTHORITY
Employees of the bank should be given a task and authority and they should be asked for
their responsibility. The sense responsibility in employees mind is one of the most
important factors in the success of any organization.
III.
PERFORMANCE APPRAISAL
61
TRANSFERS
Transfer is not properly carried out. Some of the employees are continually serving at the
same post. They are simply rotated at the same branch. Therefore it is recommended that
evenly rotation of every employee should take place after every three years in different
braches of the bank
V.
Required, qualified staff should be provided to branch in order to improve the functioning
of the branch. Especially a telephone operator should be appointed
VI.
BOP should start its operation in credit card. These cards are very helpful for the ordinary
customer in general and the business people in particular. To make it mores secure and to
eliminate the misuse of it, the management is required to keep proper security against the
card.
VII.
As mentioned earlier, BOP is very conservative in advances and loans policy. It reduces
the investment opportunities. Also loans should be given to the small businessmen and
the other businesses on large scale like in agriculture sector at the low mark-up rate. It
should adopt flexible credit policy while giving credit to the agriculture sector.
VIII.
TECHNOLOGICAL IMPROVEMENT
I would like to suggest that at least all the main branches of BOP should be fully
computerized in order to expedite the dealing process among bankers and their
customers. Every department should be provided a computer with adequate training
(especially Advances, Deposits and Foreign Exchange departments). Daily records
should be entered directly into these computers, (instead entering the overall daily
transactions after the banking hours). It will not only reduce transaction time, will
increase accuracy but will also be efficient as well. Not only it will be economical but
will also reduce the extra burden of work of the bank. It will also help in reducing the use
of excessive paper work.
IX.
STAFF RELATIOSHIP
62
Good relationship among staff member leads to the peak performances in any
organization. I observed that the staff relationship was normal other wise but sometime I
noticed that there exists little conformity among the staff members. Another syndrome
from which the staff suffered was that all of them considered them selves more important
than others.
X.
In the branch during my internship I saw that when some of the employees are transfer to
other places, due to their relation with influential people and with top management they
can cancel their transfer in few weeks, when they are unsatisfied at that place. So I
suggest that in the organization there should be no favoritism, nepotism and politics and
their transfer and promotion should be made on merit and according to the rules and
regulations of the bank and provided favorable environment to the employee to show
their performances.
XI.
MARKETING POLICY
The branch should adopt various marketing strategy and promotion strategy to promote
the bank and its product. The most important in my opinion is personal marketing; it is
the most effective of all when you think in term of branch level. But on the whole
organization level, they should arrange the seminar with in the bank and outside the bank.
They should do more advertising through newspaper and media and through channel of
personal contacts.
XII.
Great care should be taking while extending the loan. Loans should be awarded against
reasonable securities, where market value should be equal to the loan granted. Policies
should be crafted in a way to ensure that no loan is extended on political pressure. SBP
regulation for loan approval should be strictly followed.
63
www.bop.com.pk
www.Google.com
www.wikipedia.com
www.brecorder.com
www.sbp.org.pk
64
Liabilities
bills payables
borrowings
deposits and other accounts
sub ordinated loans
liabilities against assets subject to
financial lease
deferred tax liabilities
other liabilities
Presented by
share capital
discount on issue of shares
reserves
accumulated losses
share deposited money
surplus on revaluation of assets -net
2013
2012
2011
2010
2009
23820864
4265296
11407448
123973891
157239598
3514801
12627352
15825007
352674257
17298251
310170
1562946
129552004
149565885
3473491
13070614
14486073
332110474
16698333
3607107
7447375
92492813
127107501
3597483
13886769
16052311
280889692
14069601
3276234
7309587
56359404
120796694
3534660
14063694
9721900
229931774
13043705
2185782
1053550
57923172
121303368
3427267
11921146
5770905
216628895
1506335
22802482
306560694
0
2386
1500709
44683826
266055761
0
3601
850569
24963566
237896692
0
7831
581100
11526783
208176902
0
13887
875618
14040014
190858087
0
19907
0
0
0
0
0
8345203
7495928
6510013
5223152
4700569
339217100 319739825 270288671 255521824 210494195
10551132
-236158
1539659
-11275026
552607
12552607
5287974
1187433
-12743218
-6267811
17000000
10732189
5287974
1914956
-14179410
-6976480
17000000
10023520
5287974
2012492
-14411509
711043
10000000
2888957
5287974
537779
-10972082
-4510329
645029
5489671
904550
13457157
1638460
12370649
637501
10661021
720993
3609950
645029
6134700
65
INCOME STATMENTS
PROFIT AND LOSS ACCOUNT
2013
2012
2011
2010
2009
Markup/returned/interest earned
Markup/returned/interest expense
Net mark up /interest income
Provision against non-performing
loans and advances-net
Provision for diminutions in the value
of investments-net
Bad debts written off directly
24223658
20208687
4014971
-673081
24662361
22522918
2139443
-965430
20682061
21073271
-391210
-3164234
18217583
18801642
-584059
559604
15640701
19022494
3381793
9241653
21940
215502
576597
2767341
955744
241
-650900
4665871
0
-749928
2889371
0
-2587637
2196427
0
3326945
-3911004
10197397
-13579190
762490
220985
162980
724499
286975
160089
562469
404111
134488
657114
920943
247570
1449814
330025
293303
-124238
8620
585856
3190745
6080116
-5383
494103
1989708
4186135
18020
473055
1855446
-2025558
-1193
518533
2218749
-11360441
Administrative Expenses
Provision against Other assets
Provision against off balance sheet item
other charges
4437680
168419
0
-40590
4565509
1514607
3959217
1121
-244111
205
3435049
0
740000
1605
5204409
32945
325
47123
5284802
2977995
3716432
4176654
3038357
0
0
794
3039151
-14399592
2977995
278239
1514607
139284
469703
0
-6202212
0
-14339592
0
66
Liabilities
bills payables
borrowings
deposits and other accounts
sub ordinated loans
liabilities against assets subject to
0
785036
1063275
1914720
-12743218
-722971
353738
-229949
1744556
-14179410
5
174774
174779
294924
-14411509
1461
-2157119
-2155658
-4046554
-10364955
78491
-4383406
-4304915
-10094677
-7674257
10352
11604
814
6801
-387601
-326769
-69595
2894000
8391
4495350
-78486
6770
7127
7502
-13189746
-11275026
2.33
2.33
-14487774
-12743218
2.81
2.81
-14474334
-14179410
0.56
0.56
-10364955
-14411509
-7.65
-7.65
-277405
-103720
-19.9
-19.9
2013
2012
2011
2010
2009
23820864
4265296
11407448
123973891
157239598
3514801
12627352
15825007
352674257
17298251
310170
1562946
129552004
149565885
3473491
13070614
14486073
332110474
16698333
3607107
7447375
92492813
127107501
3597483
13886769
16052311
280889692
14069601
3276234
7309587
56359404
120796694
3534660
14063694
9721900
229931774
13043705
2185782
1053550
57923172
121303368
3427267
11921146
5770905
216628895
1506335
22802482
306560694
0
2386
1500709
44683826
266055761
0
3601
850569
24963566
237896692
0
7831
581100
11526783
208176902
0
13887
875618
14040014
190858087
0
19907
67
0
0
0
0
0
8345203
7495928
6510013
5223152
4700569
339217100 319739825 270288671 255521824 210494195
10551132
-236158
1539659
-11275026
552607
12552607
5287974
1187433
-12743218
-6267811
17000000
10732189
5287974
1914956
-14179410
-6976480
17000000
10023520
5287974
2012492
-14411509
711043
10000000
2888957
5287974
537779
-10972082
-4510329
645029
5489671
904550
1638460
637501
720993
645029
13457157
12370649
10661021
3609950
6134700
68
69