Internship Report on

Bank of Azad Jammu And Kashmir

Submitted By

Waqar Hassan

BBA (Hons)
(Finance)
Registration No.

Session (2018-2022)

Department of Management Sciences

University of Azad Jammu and Kashmir

Chella Campus Muzaffarabad

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 Internship Report on

Bank of Azad Jammu And Kashmir

Submitted By

Waqar Hassan

Registration No.

Session (2017-21)

This Internship report is submitted in partial fulfillment of the requirements for the degree of Bachelor of

Business Administration awarded by the University of Azad Kashmir,

Muzaffarabad

Department of Management Sciences

University of Azad Jammu and Kashmir

Muzaffarabad Azad Kashmir

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 Department of Management Sciences

University of Azad Jammu and Kashmir

Muzaffarabad Azad Kashmir

Approval Sheet

1-Evaluator
Mr. /Ms_____________________________________ Signature____________

2-Chairman
Mr. /Ms _____________________________________ Signature___________

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 Student’s Declaration

I declare that this material, which I now submit for assessment, is entirely my own work and has
not been taken from the work of others, save and to the extent that such work has been cited and
acknowledged within the text of my work. I understand that plagiarism, collusion, and copying are
grave and serious offences in the university and accept the penalties that would be imposed on me.
I have read and understood the Assignment Regulations set out in the module documentation. I
have identified and included the source of all facts, ideas, opinions, and viewpoints of others in the
assignment references. Direct quotations from books, journal articles, internet sources, module
text, or any other source what so ever are acknowledged and the source cited are identified in the
assignment references. This assignment, or any part of it, has not been previously submitted by me
or any other person for assessment on this or any other course of study.

I have read and understood the referencing guidelines as recommended in the report guidelines.

Signature:

Name:

Registration #:

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 Scanned Copy of Internship Letter

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 Dedication

All Praise to Allah, the Most Merciful

I am grateful to Allah Almighty, for enabling me to complete the work presented in this
report. It is through His unending mercy that this task moved to success. This is my first
effort to my career.

I owe my greatest gratitude to my parents for continuous support, assistance, guidance, love
and patience without which I could not able to complete my report in such a short span of
time.

I am deeply indebted to my chosen organization. i.e. BANK OF AZAD JAMMU &

KASHMIR. I am thankful to the employees of the bank. Specially the branch manager who
gave me the detailed information of work...

I am also grateful to my honorable teachers for teaching me so that I observe things

practically which I read in books. I always wish prosperity for them and for institution.

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Table of Contents
Acknowledgement ................................................................................................................................
10
Executive summary ...............................................................................................................................
11
List of Abbreviations .............................................................................................................................
12
Chapter: 01 Introduction to the report ........................................................................
12
1.1 Introduction ...................................................................................................................... 12
1.2 Study Background ............................................................................................................. 12
1.3 Purpose of the Study ......................................................................................................... 12
1.4 Scope of Study ................................................................................................................... 13
1.5 Methodology of Study .......................................................................................................... 13
1.5.1 Primary Data ................................................................................................................. 13
1.5.2 Secondary Data ............................................................................................................. 13
Chapter: 02 ...........................................................................................................................................
15
Introduction to the organization ......................................................................................................
15
2.1 History of Bank of Azad Jammu & Kashmir .............................................................................
15
2.2 Products and Services .................................................................................................................
15
2.3.1 Commercial Financing loans ................................................................................................
15
2.3.2 Consumer Financing Loans ..................................................................................................
16
2.3.3 Micro Finance .......................................................................................................................
17
2.3.4 Agriculture Finance ..............................................................................................................
17

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 2.3.5 Cash Management ...............................................................................................................
17
2.3.6 Cheques ................................................................................................................................
17
2.3.7 Payable Management ..........................................................................................................
17
2.3.8 Receivables Management ....................................................................................................
18
2.4 Account types..............................................................................................................................
18
• 2.4.1 Basic Banking Account (BBA)/ Salary Account: ............................................................
18
• 2.4.2 Current Account: ..........................................................................................................
18
• 2.4.3 Saving Account: ............................................................................................................
18
• 2.4.4 Business Account: ........................................................................................................
18
2.5 Special deposit accounts .........................................................................................................
18
2.6 Insurance facilities ..................................................................................................................
19
2.7 Core values of AJK bank ..............................................................................................................
19
• 2.7.1 Quality: .........................................................................................................................
19
• 2.7.2 People: .........................................................................................................................
19
• 2.7.3 Trust: ............................................................................................................................
19
• 2.7.4 Innovation: ...................................................................................................................
19
• 2.7.5 Responsibility: ..............................................................................................................
19
• 2.7.6 Teamwork: ...................................................................................................................
20
2.8 Products and Services Offered By Upper Adda Branch, AJK Bank ..............................................
20
• 2.8.1 Accounts: ......................................................................................................................
20

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 • 2.8.2 Loan Applications: ........................................................................................................
20
• 2.8.3 Cheques:.......................................................................................................................
20
• 2.8.4 Utility Bills: ...................................................................................................................
20
• 2.8.5 Lockers: ........................................................................................................................
20
2.9 Customers of BAJK Upper adda Branch are: ...............................................................................
20
2.13.1 Diagram: .............................................................................................................................
21
2.14 Financial Analysis of Upper Adda Branch .................................................................................
22
2.15 The BAJK’s Organogram ............................................................................................................
23
2.16 SWOT Analysis of Upper Adda Branch: .....................................................................................
23
2.16.1 Strengths ............................................................................................................................
23
2.16.2 Weaknesses .......................................................................................................................
23
2.16.3 Opportunities .....................................................................................................................
24
2.16.4 Threats ...............................................................................................................................
25
2.17 PEST ANALYSIS ..........................................................................................................................
25
• Political Analysis: ...................................................................................................................
25
• Economic Analysis: ................................................................................................................
25
• Social Analysis: ......................................................................................................................
26
• Technological Analysis: .........................................................................................................
26
Chapter: 03 ...........................................................................................................................................
27
Job Description and Analysis .............................................................................................................
27

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 3.1 Brief Introduction ....................................................................................................................
27
3.2 Starting and Ending Date of Internship ...................................................................................
27
3.3 Details of the Branch ...............................................................................................................
27
3.4 Number of employees ............................................................................................................
27
3.4 Detail of job description and position .....................................................................................
27
Chapter: 04 ...........................................................................................................................................
30
FINDINGS & RECOMMENDATIONS ...................................................................................................
30
4.1 Findings ...................................................................................................................................
30
4.1.1 Lack of Technology in Documentation Procedures. ............................................................
30
4.1.2 Qualified Staff ......................................................................................................................
30
4.1.3 Slow Internet Service ...........................................................................................................
30
4.1.4 Punctuality ...........................................................................................................................
30
4.1.5 Promotion of Employees......................................................................................................
30
4.1.6 Basic Facilities ......................................................................................................................
31
4.1.7 Level of Motivation ..............................................................................................................
31
4.2 Recommendations ...................................................................................................................... 31
4.2.1 Branch Space: .......................................................................................................................
31
4.2.2 Good Internet Connection ...................................................................................................
31
4.2.3 Improve Digital Working ......................................................................................................
31
4.2.4 Salary of Employees .............................................................................................................
31

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 4.2.4 Better Management .............................................................................................................
31
4.2.5 Fast Internet Connection .....................................................................................................
32
4.2.6 Stationary for Internees .......................................................................................................
32
4.2.7 Security of the Branch ..........................................................................................................
32
4.2.8 Strict Rules and Regulations .................................................................................................
32
4.3 Conclusion ................................................................................................................................... 32
REFERENCES ...................................................................................................................................... 33
BIBLOGRAPHY ................................................................................................................................... 33

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 Acknowledgement

I have taken efforts in this report. However, it would not have been possible without the kind
support and help of many individuals and organizations. I would like to extend my sincere
thanks to all of them.

I am highly indebted to the employees of the bank of Azad Jammu & Kashmir Upper Adda
branch for their guidance and constant supervision as well as for providing necessary
information regarding the report & also for their support in completing the project.

I would like to express my gratitude towards my parents for their kind co-operation and
encouragement which help me in completion of this project. I would like to express my
special gratitude and thanks to industry persons for giving me such attention and time.

My thanks and appreciations also go to my colleague in developing the report and people who
have willingly helped me out with their abilities.

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 Executive summary

Being a student of Department of Management Sciences, University of Azad Jammu and

Kashmir Chella Campus Muzaffarabad. I had to complete a 6 to 8 weeks of mandatory
internship at a recognized company/Enterprise/Bank. I got this opportunity at the Bank of
Azad Jammu & Kashmir to get to know about the basics and the practical knowhow about the
field work related to my studies. I joined the BAJK for almost 6 weeks from Sep-21-2021 to
Nov-01-2021. During my internship in BAJK I learned a lot about how the banks work and
what are its different departments supposed to do. It includes about all of my activities which
I performed in 6 weeks and some of the additional work too which enabled me to understand
the banking system and functionality. The significant motivation behind this report is to
accumulate data and find out about my work. It also explains all of my activities, exercises
and work which I performed during my internship and it assists me with understanding the
financial framework and the working of banks. The report is divided into four chapters. First
Chapter is basically about the Study Background, Purpose of the study & Scope of the study.
Second Chapter is about the History & current information about the organization in which I
did my internship. Third Chapter is about the job description and analysis. This section
includes each and every task which I have performed during my 6 weeks’ time frame. Fourth
Chapter incorporate the discoveries and suggestions by me base upon my temporary job
insight of the organization. This section includes my personal recommendations on how can
BAJK improve its functionality and customer service.

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 List of Abbreviations

Abbreviations Meanings
BBA Bachelor of Business Administration

UAJK University of Azad Jammu & Kashmir

ATM Automatic Teller Machine

BAJK Bank of Azad Jammu and Kashmir

CD Current Deposit

DD Demand Draft

FC Foreign currency

HO Head Office

IBC Inwards bills for collections

IC Inward Clearing

LBC Local Bills for Collections

LCY Local Currency

MT Mail Transfers

OBC Outwards bills for collections

PLS Profit & Loss Saving Account

RF Running Finance

SBP State Bank of Pakistan

SDA Special Deposit Accounts

SNTD Short Notice Term Deposit

SVP Senior Vice President

TDR Term Deposit Receipts

TT Telegraphic Transfers

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Chapter: 01 Introduction to the report

1.1 Introduction

This report is an essential part of a BBA program at the Department of Management Sciences
Chella Campus Muzaffarabad. This is an essential academic requirement to show our
internship work during six week in a reputed organization. This report encompasses the
experience, learning and analysis during the internship period at the bank in light of which
recommendations are made. This Internship report has been written on “The Bank of Azad
Jammu & Kashmir”.

1.2 Study Background

Banks play a central role in the transmission of monetary policy, one of the government's
most important tools for achieving economic growth without inflation. The central bank
controls the money supply at the national level, while banks facilitate the flow of money in
the markets within which they operate. The bank also entertains most of the sectors like
Industries, Commerce and Agriculture because these sectors need financial assistance. I got
an opportunity to understand the practical banking operations during my internship at The
Bank of Azad Jammu & Kashmir, Upper Adda Branch Muzaffarabad. This report is about
how the branch generally works.

1.3 Purpose of the Study

This study is the requirement for the completion of a BBA (Hons.) degree at the Department
of Management Sciences University of Azad Jammu & Kashmir, as well as for acquiring
some practical knowledge about the how an organization works. The basic purpose was to
gain first-hand exposure of working of a bank in the real world. It allowed me to harness the
skill, knowledge, and theoretical practice I have learnt in the University Business Department
during my bachelor program. Doing an internship has given exposure to me new people in a
more controlled and stable environment.

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1.4 Scope of Study

As an internee in Bank of Azad Jammu And Kashmir, the main focus of my study research
was on general sales & finance division of the bank. I also worked with the credit division of
the branch so as to learn some basics about the different types of loans being offered by the
bank and different rules and procedures which are to be followed when granting loans to the
customers of the branch. Additionally I was taught about the cheque clearance system of
Bank.
These include how to deal with financial prospects on professional level covering all aspects

1.5 Methodology of Study

In this report most of the data has been obtained through the primary source. For example my
own observation during the internship at the bank and very little data has been obtained from
secondary sources just like website of the AJK bank, Annual Reports of past 2 to 3 years of
the bank etc.

The Instruments used in data collection are following:

1.5.1 Primary Data

The information, which is collected for the first time and exists in raw form, is known as Primary
Data. It contains the following:

• Personal observations.

• Practical work done personally during the internship at the branch.

• Discussion with staff of the BoAJK.

1.5.2 Secondary Data

The information, which has undergone through statistical techniques and exists in refined form,
is known as secondary data. It contains the following:

• Annual Report: Annual report of The BoAJK, issued by the bank for the years 2019 and
2020.

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 • Information Memorandums: Various information memorandums issued by the
management and HR division for the information of the Clients and Staff.

• Internet: Internet is used to get updated information from the official website of the Bank
as well as other web based information available.

• Documents published by bank: Various documents and Broachers printed by the

commercial banks for their clients.

• Banking manuals: Different kind of manuals issued by banking operation division for
various departments.

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 Chapter: 02

Introduction to the organization

2.1 History of Bank of Azad Jammu & Kashmir
Keeping in view the long desire of the people of Azad State of Jammu & Kashmir having a financial

institution with in the state, the Government of Azad Jammu & Kashmir started working for

establishment a financial institution in 1974; however, the idea could not be grownup. However,

in 2005, then the Government started working on the idea with great zeal. For the purpose,

expertise of Mr. Muhammad Ahsan, former chairman of Pakistan Banking Council and Mr.

Masood Ahmed Sheikh (late), former Deputy Chief Executive, The Bank of Punjab was hired who

started working on the project.

Gnawed nationally and globally as a house hold name for market competitive products and

efficient as well friendly services.

2.2 Products and Services

2.3.1 Commercial Financing loans
There are many types of commercial financing loans being offered by the BAJK. Some of the
loans are listed as below:

2.3.1.1 Demand Finance loans

In this category, once the loan has been granted and transferred to the customer’s account, the
customer will have to pay back the interest on the loan even if the customer doesn’t use the
loan.

2.3.1.2 Running Finance Loan

In this category, even if the loan has been granted, the customer is not liable to pay the
interest on the loan until and unless the amount is withdrawn from the bank account. This
type of loan is usually offered to the business organizations so as to manage their working
capital and pay interest only on the amount which the business uses.

2.3.1.3 House Finance Loans

This type of loan is being offered to those who cannot afford their own houses. The
applications are required to show a land on their name and after the bank checks the eligibility
of the borrower, the loan is granted for the house construction purpose.

2.3.1.4 Auto Finance Loan

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Under this category the bank offers its customers to get a vehicle on easy installment basis for
a tenor of 5 to 7 years. The customer has to pay a down payment of approximately 10% to
15% amount of the vehicle in advance. The remaining amount along with interest is paid in
installments.

2.3.1.5 Tourism Promotion Finance Loan

Purpose of this loan scheme is to finance the infrastructure facilities to promote/facilitate
tourists activities and movements in tourist attractions in AJK. The tourists infrastructural
facilities include establishment of tourist Huts, refurbishment/renovation of existing guest
houses, erecting additional accommodation within existing residential houses of the locals in
AJK.

2.3.1.6 Health Services Finance Loan

BAJK offers financial facility to setup/expansion/renovation/modernization of medical/health
facilities in AJK

2.3.2 Consumer Financing Loans

This type of loan is actually acquired by the direct consumers/individuals. The customers
usually acquiring this type of loan is the end user. There are many types of consumer
financing loan which are as follows:

2.3.2.1 Advance Salary:

This is a type of loan which is usually given to the AJK government employees. The
employees can avail their 20 salaries in advance.

2.3.2.2 Car Finance:

Under this loan the banks provide a vehicle on installment basis with a tenor of 3 to 7
years depending on the interest of the customer.

2.3.2.3 House Finance:

This nature of this type of loan is similar to the car finance scheme. The only
difference is, the bank provides loan to construct a new house and the tenor of the
loan is about 10 to 20 years.

2.3.2.4 Motorcycle Finance:

The purpose of this loan is to help the poor people in getting their own motorcycle who
cannot afford expensive cars. This loan has a maturity period of almost 1 year.

2.3.2.5 Gold Loan:

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 The bank also offers its customers a loan on the basis of gold. The bank takes gold as
a security and provides loan of almost 80% value of the gold. The consumer has to
pay back the principal amount and the interest charged by the bank within 5 years. As
soon as the loan is returned to the bank, the customer gets his/her gold back.

Apart from consumer and commercial loans, there are also many other types of the loans which
are being offered by the Bank of Azad Jammu and Kashmir which are as follows:

2.3.3 Micro Finance

• Micro Enterprise Loani
• Desi Murghbani

2.3.4 Agriculture Finance

• Agri Production
• Agri Development
• Poultry Loan
• Dairy Loan

2.3.5 Cash Management

The bank offers full range of product and services to enhance client’s cash management.
These services broadly include making collections and disbursements for the companies,
liquidity management and providing information of activities.

2.3.6 Cheques
• 2.3.6.1 Open Cheque:
It is a type of a cheque which can be cashed by anyone. The bank processes the cheque
and offers cash to the customer.

• 2.3.6.2 Cross Cheque:

A type of cheque which cannot be cashed directly. The amount of cross cheque is directly
transferred to the bank account of the recipient.

2.3.7 Payable Management

• Payment of Pensions of Employees
• Payment of salaries of government employees.

2.3.8 Receivables Management

• Collections

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 • Sale of Application Forms of Govt. Departments, Corporations and Housing Schemes

2.4 Account types

Generally there are 4 types of account which are being used on daily basis.

• 2.4.1 Basic Banking Account (BBA)/ Salary Account:

So as to expand the entrance of financial services to under privileged and to
encourage and give essential financial facilities to the low salary individuals in
Pakistan, every single commercial bank offer Basic Banking Accounts (BBA) facility.

• 2.4.2 Current Account:

A current account, also known as financial account is a type of deposit account
maintained by individuals who carry out significantly higher number of transactions
with banks on a regular basis. Current accounts also allows to make payments to
creditors through the cheque facility offered by the bank.

• 2.4.3 Saving Account:

A savings account is a basic type of bank account that allows you to deposit money,
keep it safe, and withdraw funds, all while earning interest. Savings accounts offered
by most banks, credit unions, and other financial institutions are FDIC insured and
typically pay interest on your deposits.

• 2.4.4 Business Account:

A business bank account is an account that helps the business owner keep business
transactions separate from personal finances, and usually comes with special
conditions for businesses. This helps business owners track their expenses, mange
cash flow, and make it easier to calculate tax liabilities.

2.5 Special deposit accounts

• This account can be opened in individual or joints names.
• Individuals, corporation, organization and government departments can open accounts
under the scheme

• No withdrawal limit.
• The deduction of Zakat and Withholding tax will be applicable as per law of the land.

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 • Free to investors
• Competitive Insurance rates. Insurance will be mandatory where first year`s insurance
will be taken up front.
• Processing fee will be 1% of finance amount.

2.6 Insurance facilities

• Upfront for 1st year.
• Premium for subsequent year to be recovered in advance with equal Monthly Installments
(no insurance premium to be recovered in last year of loan).

2.7 Core values of AJK bank

• 2.7.1 Quality:
The bank of Azad Jammu and Kashmir takes pride in providing high value products
and services that it stands behind, which ensures customer satisfaction, profitability
and the future of its employees and growth.

• 2.7.2 People:
The main focus of AJK bank is to provide superior service quality through diversification
and development of its people.

• 2.7.3 Trust:
The bank will not compromise on integrity. Zero tolerance for corruption,
mismanagement and it believes in doing the right thing.

• 2.7.4 Innovation:
The executives of the bank are determined towards building a work environment
where creative thinking is encouraged and rewarded in order to create opportunities
for process improvement and more cost-effective sustainable products and services,
providing value to both employees and our customers.

• 2.7.5 Responsibility:
Embracing the value of Responsibility means being accountable, being committed, and
accepting ownership for one's decisions, actions, and behavior.

• 2.7.6 Teamwork:

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 Making personal goals secondary to group goals may seem difficult, but it pays off
for everyone in the end. The greatest advantage of teamwork is that it achieves what
individuals can't, through the medium of simple cooperation. AJK bank has a focus
on developing an environment where teamwork is promoted.

2.8 Products and Services Offered By Upper Adda Branch, AJK Bank
• 2.8.1 Accounts:
The Upper Adda branch offers all types of accounts mentioned above in this report.

• 2.8.2 Loan Applications:

The applications for loans offered by the AJK bank are accepted in upper adda branch.

• 2.8.3 Cheques:
Upper Adda branch accepts the open cheque as well as the cross cheque

• 2.8.4 Utility Bills:

The Upper Adda branch of AJK bank is authorized to collect Telephone & Electricity
Bills.

• 2.8.5 Lockers:
Lockers` facility is available in main branches in three different sizes Small, Medium
and Large on annually fee with one-time security Deposit respectively to the size of
locker, Locker holders need to have an account in bank but the applications are also
accepted by Upper Adda branch which are then forwarded to the main branches.

2.9 Customers of BAJK Upper adda Branch are:

Government Servants

• Walk in persons
• Proprietors
• Partners

2.13.1 Diagram:

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 • 2.13.2 Intensity of Industry Rivalry
There are multiple factors that can impact the intensity of rivalry of AJK bank in the
industry. Concentration of rivals – the more competitors, the more intense the rivalry,
Product homogeneity – banking industry is selling very similar products to the
products offered by AJK bank due which its becoming more competitive, Brand
loyalty – rivalry is high when customers have low brand loyalty.

• 2.13.3 Threat of Potential Entrants

The threat of potential entrants is impacted by things such as government regulation –
industries with strict government regulation pose a higher barrier to potential new
entrants, High fixed costs – things such as specialist equipment, properties, and land
are examples of high fixed costs

• 2.13.4 Bargaining Power of Buyers

The bargaining power of buyers is high when customers are large or concentrated, so
their decisions to purchase a product/service have bigger impacts on the bank,
Customer have good information about the product, such as product pricing and
demand
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 • 2.13.5 Buyers are price-sensitive when:
There are many industry competitors, giving the customers more choices with lower
prices and better product attributes, there are many substitutes available and product
homogeneity is high

2.14 Financial Analysis of Upper Adda Branch

As an internee it was not possible for me get the branch related figures to calculate the
financial position of the organization because the branch related specific data is only with the
head offices of the bank. The only data I had access to, was from the annual reports and my
observations during my internship. I roughly got to know that the upper adda branch of AJK
bank earns almost 70-80K. This is a healthy amount to survive and grow in this competitive
banking industry.

2.15 The BAJK’s Organogram

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2.16 SWOT Analysis of Upper Adda Branch:
2.16.1 Strengths
The main strength of the upper adda branch is its location. It is located in the Upper Adda
where it receives a healthy amount of deposit every year. Additionally, the branch has a
very qualified staff which helps the customers through a very well organized procedure.
As most of the customers are businessmen due to branch’s location, it mostly deals in
business accounts which are a good source of earning for a bank.

2.16.2 Weaknesses
Along with the strengths of this branch, It also has many weaknesses which are not good and
cause hurdles in the operations of the bank. Some of its weaknesses are as follows

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 •
High Cost Deposit:
The branch has a very high cost deposit ratio. This means that majority of the customers of
this branch have opened a saving account. The more the no. of saving accounts in a branch,
the profit branch has to pay its customers. This is because many of the customers try to earn
profit on their savings.

• Non-Performing Loans:
It usually means that the borrower is default and hasn't made any scheduled payments of
principal or interest for some time. Many of the customers or loan seekers of Upper Adda
branch haven’t paid installments for a long period of time which eventually disturbs the
whole income mechanism of the branch.

• Slow Internet Service:

The city of Muzaffarabad itself has a connectivity issue. The banks suffer due to this cause
more often. The upper Adda branch is also facing the internet issue due to which the
customers sometimes have to wait for a long period of time for getting their queries solved by
the branch. Moreover, the employees of the bank also face problems while performing their
daily activities.

• No Online Systems:
The Upper Adda branch mostly works on paper based system. Most of its activities are
performed on the paper based network.

• No ATMS & Debit Cards:

The AJK Bank doesn’t have any of its own ATMS and Debit cards. This lack of facility
prevents many of the new customers in Muzaffarabad to seek services from AJK bank.

• Shortage of Space:
The branch has a shortage of space. The total area of the branch is about 70m 2 which is not
sufficient for the employees.

2.16.3 Opportunities
• Offer Better Services to Businessmen
Due to the branch’s location it has a good opportunity to provide the businessmen a good
service to the shop keepers which will eventually result in more deposits to the branch the
shop keepers.

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 •
• Training Programs
Comprehensive training programs can be develop to upgrade the core skills of the existing
staff as well as integrate high quality hiring of the new employees.
Merit-Based Culture
To improve the motivation of staff a merit-based culture has to be promoted. Secondly the
branch can increase its efficiency by introducing incentives to its employees for good work.

2.16.4 Threats
Following are the major threats which the branch is facing:

• Competitor:
The major threat for the Upper Adda branch of AJK bank is its competitor NBP bank’s
branch which is also located in Upper Adda. The NBP bank’s branch provides more
convenient services as compared to the AJK bank because NBP bank is a scheduled bank
which also deals in the foreign currency which helps the traders of the market to do payments
out of the country.

Secondly, NBP bank offers debits and credit cards which provides its customers an edge of
accessing their money at any place and time by just using an ATM machine.

2.17 PEST ANALYSIS

• Political Analysis:
As the state of Azad Jammu & Kashmir is independent. Due to this reason the AJK bank
usually follows the guidance of the AJK government and not the State Bank of Pakistan.
This is the reason AJK bank is not recognized by the SBP. Eventually AJK bank has no
access to the international money transfers which is important for any type of bank in this
competitive industry.

Secondly, As soon as the government of AJK changes, it makes changes in the regulatory
framework of AJK bank which take time to be implemented. These changes in the
regulatory framework slow down the innovation process of the AJK bank.

• Economic Analysis:
Interest rates, inflation, unemployment, GDP, rise and fall of the middle class also effects
any kind of Industry’s economy. Due to the previous government policies like rise in

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 •
interest rate, inflation, increase of unemployment impact badly the economy of AJK
Social Analysis:
Due to change in demographics (age, growth rate, and education level etc) BoAJK
Company needs to work accordingly along with innovation. BoAJK is working according
to the measures. As workspace and lifestyle changed BoAJK adapted the new
environment up-to demand. BoAJK has worked very hard on Public Relation side that is
why they have gained trust in market.

• Technological Analysis:
Bank of Azad Jammu & Kashmir lacks the facility of using technological tools. In this
modern era technology has completely changed the working style of the banks. But, the
AJK bank and more specifically the Upper Adda branch of AJK bank is till currently
working on paper based system which has to be changed to compete within this industry.

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 •

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 Chapter: 03
Job Description and Analysis
3.1 Brief Introduction
I did my Internship at BoAJK Upper Adda Branch. This branch is located in the capital city
Muzaffarabad.

3.2 Starting and Ending Date of Internship

I worked in the, BoAJK for seven weeks from 21 Sep 2021 to 01 Nov 2021
3.3 Details of the Branch

• Branch Name Upper Adda Branch Muzaffarabad

• Branch Code 0061
• Address Upper Adda District Muzaffarabad A.K
• City Muzaffarabad
3.4 Number of employees
The number of employees in the BoAJK Upper Adda Branch are 11 including myself.

• Branch Manager : Mr; Asad Qadeer

• Credit Manager : Mr; Rizwan Khan

• Operation officer Mr; Ehsan

• Cashier :Ms; fatima

• Security Guards

• Office Boys

3.4 Detail of job description and position

My job description as an internee at BoAJK was as follows

I worked as an internee at the branch for 7 weeks. The details of my working routine is
mentioned as below

• Week 1:

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 During the first week I was given general orientation about my internship work at the
branch and was informed about the activities which I will be performing in the next
few weeks.

• Week 2 to week 4:
During this period of my internship program Mr. RIZWAN (Credit manager of the
branch) taught me the account opening procedures. First of all the account opening
form has to be filled with the brief introduction of the customer, after form a
specimen form has been filled which remains in the bank for verification. Bank
checks the eligibility of the customers and sometime ask for further documents as a
proof.

After filling the form account is registered in account opening registered and number
of account according to the register is given to the customer.

Cheque book issuing procedure

The cheque book is provided by the head office after the successful opening of the
bank account. The charges for issuance of the check book are automatically deducted
from the account.

Ledger posting
Mr. Ehsaan (Operation officer) was my Instructor in Ledger posting activities. During
my internship period I concentrated on the work of posting the daily transactions in
the ledger

• Week 5 to Week 7:
In the last 3 weeks of my internship period at the branch my activities were as follows:

Daily reports
I have also made the daily reports. I had to record all the transactions done by the
bank on daily basis. I have also gained experience on the cash department I learned
how cash is managed and defected notes can be rectified.

Form fills for the loan process.

I came to know about the procedure to apply for the loan schemes such as gold loan,
agricultural loan etc. I kept dealing with new customers coming to the branch. I used
to explain them different types of loans being offered by the Bank of Azad Jammu&
Kashmir.

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 Advisory service
During my internship in the BAJK I also provided advisory services to deal with their
queries and problems. My job was to note down the complains done by the customers
and forward those complains to the manager of the branch .

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 Chapter: 04
FINDINGS &
RECOMMENDATIONS
4.1 Findings
There is no single professional organization in the world, which is “perfect”. There are
always some flaws within organizations which need to be revamped from time to time. For
this purpose, either the same organization has to make researches and analyses for
rectification of such flaws or some other agencies play its role to introduce means for
removing problems from professional organizations.

During my internship at Upper Adda branch of BoAJK, I concluded the following things

4.1.1 Lack of Technology in Documentation Procedures.

I found the flaw in documentation and information matters at the branch. The flow of
information about important matters and daily working practices were done on paper based
method. Moreover interbank transactions and mailings were also not done digitalized.

4.1.2 Qualified Staff

Despite of all the flaws all the staff members were well qualified and know their job very
well.
They were helping and kind to the customers of the bank and as well as to each other.

4.1.3 Slow Internet Service

The branch suffers due to slow internet service more often. The Upper Adda branch faces the
internet issue due to which the customers sometimes have to wait for a long period of time for
getting their queries solved by the branch. Moreover, the employees of the bank also face
problems while performing their daily activities.

4.1.4 Punctuality
As my internship was going on during the pandemic days so many of the staff members used
to work from home. But as soon as it became necessary to work in the office all of the branch
members reported on time.

4.1.5 Promotion of Employees

Promotion is one of the major motivational tools. The promotional policy of the BAJK is very
slow. The opportunities for upward advancement are very few. The salary packages of

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employees are also very low. More salary should be provided to employees and the
opportunities of promotion must be provided to increase employee’s morale and motivation

4.1.6 Basic Facilities

During my internship I noticed that this branch lacks the basic facilities which must be
provided to the internees as well as to the employees of the branch. Insufficient stationery is
one of them. There are not enough pens and other stationery in the branch to allow the
employees to perform their work smoothly.

4.1.7 Level of Motivation

The level of motivation among employees was very low. As the employees of the branch
needs to communicate to their online database every time. Sometimes there was a break down
in the internet connection, which interrupt their work and somehow customers suffer from
this.

4.2 Recommendations
I recommend the following points;

4.2.1 Branch Space:

The Upper Adda Branch currently doesn’t have a spacious area. Due to this reason at a time
more than 5 to 6 customers cannot be dealt at the same time. The branch should be shifted to
a specious big area where the employees can manage their own activities as well as manage
customers without any space problems.

4.2.2 Good Internet Connection

The branch should change its internet service provider to a better one. The speed of the
internet should be improved which help employees to make online transactions fast
eventually customers will not have to wait for long period of time.

4.2.3 Improve Digital Working

The branch mostly follows the paper based working procedure and doesn’t emphasize on
digital working procedures. The branch should adopt the technology based operation which is
fast and error free.

4.2.4 Salary of Employees

More salary should be provided to employees and the opportunities of promotion must be
provided to increase employee’s morale and motivation.

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4.2.4 Better Management
Management needs to encourage employees for their work to increase the employee’s Morale

and motivation.

4.2.5 Fast Internet Connection

Fast internet connection must be used to reduce the internet break downs.

4.2.6 Stationary for Internees

Basic stationery must be provided to internees as well as to employees.

4.2.7 Security of the Branch

The guard must be assigned his specific duty to provide safety to employees and to the
customers as well.

4.2.8 Strict Rules and Regulations

Their prompt communication must be ensured and the employees must be informed about the
penalties in case of negligence.

4.3 Conclusion
During my internship at BAJK Upper Adda branch Muzaffarabad, I learnt so many things
there & my work experience was great.

Especially the exposure to professional world was great.

The staff members were very friendly and they teach me a lot about the working of the bank.
They helped me a lot at every stage and I got detailed know how about how the banking
sector is working on daily basis and the way it operates.

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REFERENCES
• www.pakistaneconomist.com

• Annual Report 2019

• www.wikipedia.org.com

• www.businessfinance.com

• www.finananalysis.com

• https://bankajk.com

• https://bankajk.com/downloads/annual_report_2019.pdf

BIBLOGRAPHY
• Annual Report 2014
• Annual Report 2015
• Wikipedia
• Annual Report 2016
• Annual Report 2017
• Annual Report 2018

i
https://bankajk.com/micro-finance.php

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