Passion Reborn": Internship Report On Bank of Punjab
Passion Reborn": Internship Report On Bank of Punjab
Passion Reborn": Internship Report On Bank of Punjab
BANK OF PUNJAB
Introduction of the bank and the banks history along with the administration, the audit
committee, the branch banking, and the products offered by the bank. The bank in
which I performed my internship has departments division like this:
Most of the department’s functions are being learned during the internship period.
The report also contains the skills and the work performed during the tenure. Ration
analysis, interpretation of the ratios, and SWOT analysis of the bank.
Table of Contents
Pages
Executive Summary 7
Acknowledgement 8
Dedication 9
Introduction to report 9
Objectives 13
Organizational Structure/Hierarchy 14
Products/Services/ Departments 19
Work Done By me 72
Financial Analysis 83
SWOT Analysis 88
Recommendations 92
Conclusion 95
Bibliography 96
Glossary 96
Annexure 97
Executive Summary
Getting opportunities, learning and observing is always a very special thing for
starting professional career. An imaginative and farsighted person will always try to
use these opportunities to groom his/her own education, personality and attitude. As a
student one is benefited by acquiring awareness and practical knowledge for starting
the professional career. The process of learning in the well established and
professional environment is very vital for building a career. This process of learning
acts as the cornerstone to enhance career prospects, develop the confidence in the
students.
Cash Department
Deposit Department
Clearing Department
Remittance Department
Bills Department
Account Department
All the main functions and features of these departments will be briefly highlighted in
this report in next pages. The bank’s infrastructure, policies and plans all are geared
toward promoting speedy services to all their valued customers. Bank of Punjab’s
overall performance is better as compared to other scheduled banks. The management
believes that Bank of Punjab’s main objective is service oriented. The slogan of BOP
is:
“PASSION REBORN”
2) Acknowledgement
“All praise and thanks for Almighty Allah who is entire source of knowledge and
wisdom to mankind.
The internship offer the opportunity for fresh graduates, masters to get
practical knowledge and analytic know how about the professional
3) Dedications
Honorable teacher
4) Introduction to report.
History of BOP
The Bank of Punjab was established in 1989 and was given the status of scheduled
bank in 1994.The architect of the bank Mr. Nawaz Sharif then, the Chief Minister of
Punjab, performed the inauguration. Authorized capital of The Bank of Punjab is
RS.50.0 Billion.
The bank of Punjab is listed at Lahore and Karachi Stock Exchanges. Fifty one
percent (51%) of the share capital is held by the Government of Punjab and the rest is
owned by Pakistani individuals/firms and foreigners. The Bank of Punjab is working
as a scheduled commercial bank with a network of almost 327 branches at all over
major locations in the Punjab.
The Bank provides all types of banking services such as Deposits in Local Currency
and client foreign currency, remittances, and advances to business, trade, industry and
agriculture. The Bank of Punjab has indeed entered a new era of science to the nation
under experience and professional hands of its management.
An overview
The branch is almost 02 years old. I think It is one of the latest branches of bank’s
being started in the area. It has a vast customer base. There are many old customers
who have opened their accounts when the branch started its operations in the area.
The supportive environment is comparatively less hectic than foreign banks, and easy
working and approaches make the Bank of Punjab a quick choice for customers. The
branch location is good because it is located in customer focused area as it’s a market
area.
Educational Institutes
Agriculturists
WAPDA
Pharmaceutical Companies
WASA
TMO
BOP still makes a difference in attracting customers with minimum deduction for
special services. A huge number of illiterate customers walk in the bank and are
facilitated by the staff, and such customers are always demand for less deduction on
special facilities like Pay order, Demand Draft, BOP online etc.
Vision Statement
Mission Statement
“To exceed the expectations of our stakeholders by leveraging our relationship with
the government of Punjab and delivering a complete range of professional solutions
with a focus on program driven products and services in the agriculture and middle
tire markets through a motivated team.”
Core values
Objectives
The Bank of Punjab being a commercial bank performs all those function as are
attributed to such banking institutions both in the areas of resources mobilization and
investment. It is providing funds for commerce, trade, industry, and agriculture but its
main emphasis is on accelerated development of agro-based industry. So the main
objective of the bank is to channelize the resources into sectors, which have suffered
from neglect. Other objectives included.
Head Office:
Head Office and the main branch of BOP are in Gulberg 3 Lahore &
Egerton road Lahore Respectively.
Regional Offices
The Bank has been divided into seven regions each consists of number of branches.
The administrate control, operational control and increasing business volume is the
responsibility of the Regional chief.
Rests are the branches working under these regions which are almost 324 in all over
Pakistan.
Name Designation
CHAIRMAN
BOARD OF DIRECTORS
MANAGING DIRECTORS
DIVISIONS
BRANCHES
BOARD OF DIRECTORS
CHAIRMAN
CASH OFFICER
Chairman
Managing
Director
General
Manager
Regional
Officer
Area
Manager
Branch
Manager
Operation
Manager
Deposit Products:
In modern times very few business enterprises are carried out solely with the capital
of the owners. Borrowing funds from different sources has becomes an essential
feature of today business enterprise. But in the case of an entire banking system is
based on it. The borrowed capital of the bank is much greater then their own capital.
Banks borrowing is mostly in the form of deposits.
These deposits are lent out to different parties. The larger the difference between the
rate at which the deposits are borrowed and the rate at which they is lent out the
greater of the profit margin of the bank. Furthermore, the larger the deposit the larger
will be the funds available for employment; larger the funds lent out the greater will
be the profit of the bank.
BOP TAQWA Islamic banking Division,is all set with its rebranded and revived
outlook to provide customers with distinct Shariah Complaint Banking Service
in the Islamic Financial Market.
Allhamdulilah, BOP TAQWA has proved to be a successful story where the Pakistan
largest conversion project was successfully completed and resultantly an
extended network of branches spread across Punjab , KPK and AJK is fully
operational and serving market needs.
TAQWA IBD still has a long way to go. We are in continuous process of Growth and
development. Our team is rigorously working on development of distinctive
Riba Free and Shariah Complaint products to serve the needs of all sectors of
economy including corporate, commercial and consumer.
Mufti Muhammad Zahid has authored various publications including ?????? ???????
?? ???????)) (translation from English to Urdu of the work of Mufti Muhammad
TaqiUsmani).
Dr. Ejaz Ahmed Samdani is an eminent Shariah scholar and has sound experience of
Islamic Banking & Finance. Dr. Samdani has strong academic background in Islamic
Studies and Islamic Economics. He completed his all religious qualifications such as
Takhassus fi Iftaa & Shahdatul Aalimiyah from Jamia Dar ulUloom, Karachi.
Dr. Samdani has done his Masters of Arts in Islamic Studies and LLB from
Bahauddin Zakariya University and Sindh Muslim Govt. College respectively
Further, he did his Doctorate (PhD) from Karachi University (on the topic of Islamic
Banking and Gharar (uncertainty).
He has delivered several lectures at local and international forums and has issued
about more than three thousand fatawas on different Islamic topics especially in
Islamic Finance and family law. He has written many books on different Shariah
matters and his several research topics have been published in various well renowned
newspapers and magazines.
Dr. MUHAMMAD MUSHTAQ AHMED
He is teaching Shariah and Islamic banking courses since 2006. He has delivered
lectures in various national and international programs about Islamic Banking, his
research papers on Islamic Banking and Finance and social issues have also been
published in international research Journals.
TAQWA ISLAMIC BANKING has stepped in the Islamic Financial Market with its
assorted products and services which are both industry compatible and competitive.
Under the kind supervision of our worthy Shariah Board, TAQWA IBD is providing
Shariah compliant solutions to its financial customers.
We are confident that we will be BOPe to expand our Islamic Financing Services to
all sectors of economy including Consumers, SME, Commercial and Corporate
sectors across Pakistan. Presently, we are offering following products;
We are determined to facilitate our valued customers through adding more beneficial
schemes to our product basket.
Minimum investment is Rs. 100,000/- while maximum deposit limit is Rs. 3,000,000
Savings accounts with the banking sector represent a very small proportion of total
deposits. Customer can make withdrawals from this type of account. Withdrawals
against this account are very low.
However for renewal, charges will be applicBOPe. Free first 25 leaves cheque book
will be issued at the time of account opening.
Loan Products:
A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of
financial assets over time, between the lender and the borrower. In a loan, the
borrower initially receives or borrows an amount of money, called the principal, from
the lender, and is obligated to pay back or repay an equal amount of money to the
lender at a later time.
Commercial Finance:
1. Running finance
2. Demand Finance
3. Cash Finance.
1. Running Finance:
Running finance is the advance which is given by allowing the customer to withdraw
more money from his current account than he has in it. Running finance at The Bank
of Punjab can be against pledge of shares, Government securities, and hypothecation
of stock.
3. Cash Finance:
This facility is generally provided against pledge of goods. Under this type of
financial accommodation the facility amount is disbursed in specially opened account
for the purpose. The pledged goods are released to the borrower against cash payment
only. In case the goods pledged are seasonal in nature, the customer would be
required to adjust the facility before the season ends. Rollover shall not be allowed.
Agriculture Credit
There are many agriculture promotion schemes provided by BOP.
Financial facility provided to the farmers and non farmers (those who provide tractors
to farmers on rental basis for various tractor related operations), for purchase of
Tractor on Lease Finance Basis. Resident Self Cultivator having Agriculture Land
minimum 5 acres and maximum 50 acres. Maximum limit is of Rs. 750,000/-.10% to
20% of the cost of Tractor will be paid by the borrower on case to case basis. Lease
Tractor (to be registered in the name of Bank); Charge on Agriculture Land through
Agri. Pass Book; One personal guarantee of reputBOPe person. Two written
satisfactory market checking reports. 10 equal half yearly installments (within five
years).
Financial facility provided to the farmers for installation of Tube well, turbines etc.
Resident Self Cultivator having Agriculture Land minimum 5 acres and maximum 50
acres.Maximum Rs 500,000/-. 20% of the cost of project will be paid by the borrower.
Lease Assets i.e. Engine, Tube well and other related implements (The vendor will
issue receipt in the name of Bank). Charge on Agriculture Land through Agri. Pass
Book. Guarantee of reputBOPe person acceptBOPe to Bank. Two written satisfactory
market checking reports. The maximum amount of Finance will be allowed upto 75%
of the Oast Bai Value of land (Oast Bai is verified by Revenue Officer).8-10 equal
half yearly installments (within four to five years).
3. Quick Cash:
You are thinking of sending your child abroad for higher education or a daughter’s
wedding perhaps. However, you do not see to fulfill them as you do not have money.
Don’t get troubled as Bank of Punjab has the answer to this in the form of Quick
Cash.
Commercial Banking
The Commercial Banking Group has been formed to cater the needs of small &
medium size customers for increasing Bank’s business significantly with clear focus,
repositioning of resources and active marketing to improve Bank’s profitability.
Cash Management
Cash Management is a process of collections & payments on behalf of the Customers
using the Bank Network. The objective is to facilitate organizations with multiple
collection points in gathering Cash / Funds and making them availBOPe in the
customer operating Account.
All branches of BOP across Pakistan working with partners for payment of inward
remittance from UAE, USA, Europe and other countries.
Lockers
It is one of the utility services that BOP provides to their customers for keeping
jewellery, important documents and other valuBOPes.
Pay Order
BOP provides transfer of money using different facilities. Its pay orders are a secure
and easy way to move the money from one place to another. The charges for this
service are extremely competitive.
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.
It help farmers utilize funds efficiently to further develop and achieve better
production. It provides farmers an integrated package of credit with supplies of
essential inputs, technical knowledge, and supervision of farming.
RFD is also playing active role in supporting GOPb’s vision of providing employment
opportunities & sheltering to masses of Punjab through Yellow Cab, Apna Rozgar
Scheme & Ashiana Housing Finance Schemes.
Wholesale Banking
The Bank of Punjab has recently created a new segment of “Wholesale Banking
(WB)” targeted at providing seamless banking services to its Commercial and
Corporate clients by sharing maximum value with its relationships and to ensure
improved services under one roof. In order to take the bank one step further, 10
branches have been dedicated for this Division. The Corporate & Investment Banking
Group and Commercial Banking Group have been replaced by two new units namely,
Wholesale Banking-I (Karachi, Sialkot, Multan, Gujranwala, Faisalabad & Jhang) and
Wholesale Banking-II (Lahore, Rawalpindi, Islamabad,). The proposed change is
expected to bolster relationships with our valued customers.
Apart from regular branch banking offered at these 10 branches, the following
products are also being offered:
Project Finance
Debt Syndications and Consortium Financing
Corporate Finance
Long Term/Demand Finance
Working Capital Finance
Letter of Credit, Contracts and Export collection services
FE Loans, Pre and Post Shipment Export Financing
Import Financing
Bills Discounting
Letter of Guarantees
Cash Management Services and etc.
Accounts opening department is one of the departments that come under the general
banking facilities provided by The Bank of Punjab. Account opening is the first step
towards establishing a relationship between the customer and the bank.
Account Opening
The person would like to open his account is required to meet with the manager or
second officer, who will give him an Application form specifically used for account
opening. Along with the form a card for specimen signature is also supplied to the
customer. Manager has every right not to accept this contract if he is not satisfied with
Partnership Account
Joint Stock Company Account
Clubs, Society, Association or Trust Account
Individual’s Accounts
When a single man or women opens an account in his or her own name and has a
right to operate, that account is called as individual account
Documentation:
For opening an individual accounts following documents are required:
Copy of CNIC
Source of fund
Proper identification (introduction)
Two passport size photographs (if required)
Copy of CNIC of next to kin
Proprietorship Account
Proprietorship account is concern with the business operated by one person who is the
proprietor of the business concern however he can nominate his any representative to
operate the account on his behalf. Authority letter to this effect obtained by the
account holder.
Documentation:
For opening a proprietorship accounts following documents are required:
Copy of CNIC/Passport copy
Proper identification (introduction)
Copy of Certificate of Registration of firm with some Govt./semi Govt/Trade
organization/professional body etc.
Request letter on company’s letter head
Copy of sole proprietorship declaration to be signed in a personal capacity.
Sole Proprietorship stamp
Partnership Account
Partnership account is opened by partners of the firm who some times authorize one
of the partners or managing partner of the firm.
Account Closing
When a person wants to close his account because of any reason, he has to give a
hand written application to the head of the operations department to close his account,
plus remaining leaves of cheque book.
The operation manager first verifies the signatures of account holder, and then closing
is done form register on the computer where the account was opened. In the file of
account holder, his account opening form is also crossed and all the remaining
checques in a checque book are canceled.
Dormant Account
When any customer does not operate his account for 6 months, then computer,
automatically, includes that account holder in inactive account. This is dormant
account. Now account holder cannot operate his account. Bank informs him that
your account is now inactive.
Procedure
All the account opening formalities must be completed before, issuance of cheque
book. Particulars of the cheque book requisition should be completed containing title
If customer is unable to collect his cheque book, then he can give authority to the
third person to collect his cheque book on his behalf by signing on the back of the
requisition. in such case the particulars of the third party are required like name of the
person, CNIC number and signature of that person on requisition and cheque book
issuance register.
Cheque book is taken out from the safe. Particulars are entered in the cheque book
issuance register. It is assured that account number and cheque number are printed on
every leaf of the cheque book and those leaves are counted, Name of the account
holder is written on the cover of the cheque book and the requisition on the cheque
book for further issuance is properly filled stamped and signed by the officer of the
bank.
Cheque book is delivered to the customer and his signatures are taken
into the cheque book issuance register. Cheque serial number is entered
in the system. Stock of cheque books are balanced at the end of each day.
Terms & Conditions
The following words and expressions shall, unless the context otherwise so requires,
have the following meanings:
b) Account Opening Form means the form prescribed by the Bank, as modified
or amended from time to time, which is to be completed by the customer for
opening an account.
c) ATM Services means services offered by the Bank to the account holders as
per the ATM Terms and Conditions prescribed by the Bank from time to time.
f) Business Income means total income of a pool from Business (es) for a given
period.
h) Direct Expenses means all direct costs and expenses attributable to a pool in
relation to a Business for the purpose of deriving Business Income.
i) Hiba means a part of profit that is due to the Bank, which the Bank may
relinquish, on the date of distribution, in favor of depositors.
l) Investment Risk Reserve (IRR) means the amount appropriated by the Bank
out of the income of investment account holders, after allocating the Mudarib
share on the basis of Tabarru, in order to cater against future losses for
investment account holders.
m) Loss / Net loss means loss of respective Pool(s) after charging all direct
expenses and write offs (if any), which shall be calculated on an accrual basis
and in conformity with the generally accepted accounting principles applied on a
consistent basis.
n) Mudaraba means a form of partnership where one party provides the funds
while the other provides expertise and management. Any profits accrued are
shared between the two parties on a pre-agreed basis, while loss is borne by the
provider of the capital.
t) Profit / Net profit means profit of respective Pool(s) after charging all direct
expenses and write offs (if any), which shall be calculated on an accrual basis
and in conformity with the generally accepted accounting principles applied on a
consistent basis.
v) SBP means the State Bank of Pakistan, established under the State Bank of
Pakistan Act, 1956, and includes it successors in- interest.
w) The Bank means BOP – Islamic Banking Division having its principal office
at 10-B, Block II Main Boulevard, Gulberg III, Lahore Pakistan.
y) The Terms or "These Terms" means these and any supplementary terms and
conditions, as amended from time to time.
2. Opening an Account
The Account shall be opened upon submission of duly filled-in Bank's prescribed
Account Opening Form properly in the manner provided and on submitting all such
documents and information as may be requested by the Bank. Further, the Bank
reserves the right to demand such relevant documents and information even after
opening of account as deemed necessary. In the event of failure of the Customer to
provide such documents and information, the Bank may, at its sole discretion
withhold operations of the Account or close such Account.
The Account shall be opened with an initial / minimum deposit as stipulated by the
Bank from time to time unless specifically relaxed / exempted by SBP.
A distinctive number will be allotted to every account and this number should be
quoted in all correspondence relating to the account and at the time of making a
deposit or withdrawal. The Bank reserves the right to change the Account Number or
any part of it in order to meet its book keeping / administration requirement.
However, intimation of change in the account number shall be sent to the account
holder.
The Accounts may be opened singly in one name or jointly in two or more names.
3. Minor Account
Deposit may be accepted from minors provided the account is opened and operated
through a guardian.
The Account thus opened will continue to be operated upon by the guardian even if
the minor attains the age of majority. The necessary consent to this effect will be
obtained at the time of opening of the account. The orders of the court will, however,
be followed in case the guardian is appointed by the court.
4. Joint Accounts
If an account is opened in the names of two or more persons, the balance to the credit
of that account and any accruals thereon shall at all times belong to the persons who
are signatories to the account opening form. Such persons shall also be jointly and
severally liable for all liabilities incurred in relation to the account and the services.
The customer authorizes the Bank to pay or deliver to either or survivor(s) of the
person(s) in whose names the account has been opened, or the legal representative(s)
of such survivor(s), any monies, securities or properties standing to the credit of the
joint account or held by the Bank.
In the case of joint accounts, following further provisions shall also apply:
a) Each of the signatory to the account shall be deemed to have authorized and
empowered the other signatories:
i) to endorse and deposit for credit to such account, any and all cheques,
drafts, notes or other instruments or the payment of money, payable or
purporting to belong to other person(s) named in the account, and should
any such instrument(s) be received by the Bank without being so endorsed,
ii) To issue any cheques, drafts, notes or other instruments that may be
drawn against such account.
c) In the event the Bank receives conflicting instructions from the signatories to a
joint account, the Bank shall be entitled to suspend the operation of such account,
without any prior notice.
In the event of a death of any one or more of the account holders having operational
instructions, in the case where the credit balance in a joint account is payable either to
any one or more of the account holders or survivors of them; in the absence of a
contract to the contrary, the credit balance will become payable to the survivor(s)
without reference to the legal heirs of the deceased person or persons. In all other
cases, the credit balance will be payable to the legal heirs of the deceased account
holder(s) along with the remaining account holder(s) as per bank's procedure.
5. Cheque Books
Where a person is sent to take delivery of a Cheque Book on behalf of the account
holder, such person must be in possession of a written authority form the account
holder to do so as well as a Cheque Book requisition slip.
The account holders in their own interest and to reduce the risk of fraud are requested
to keep their Cheque Books under lock & key and to ensure that their Cheque Books
do not get into unauthorized hands. In case of loss or theft of Cheque book, if the
customer reports the concerned Branch before payment, he will not be liable for any
loss or damages. However, in any case, bank is liable to observe due diligence in good
faith.
Loss of Cheque leaves or Cheque Book or the Cheque Book Requisition Slip should
be immediately notified by the Account holder to the Bank in writing.
If the Cheque book is not collected within sixty (60) days of the issuance, it will be
destroyed by the bank at customer's cost.
6. Statement of Account
The Bank will take care to see that credit and debit entries are correctly recorded in
all accounts but in case of any error, the Bank shall be within its right to make the
correct / adjusting entries and recover any amount wrongly paid or credited and
inform the account holder subsequently. The Bank shall not be liBOPe for any loss or
damage to the account holder due to such errors or corrections thereof.
7. Deposits
8. Withdrawals
Withdrawals from the account can be made only by means of Cheque supplied by the
Bank in printed form or any other mode approved by the Bank. Cheque should be
written in un-vanish able / un-erasable ink and be signed as per specimen signature(s)
supplied to the Bank and any alterations in the instrument must be authenticated by
the drawer(s) under his / her / their full signature(s) as the case may be.
Illiterate customers will not be liable for cuttings and alterations on cheques unless
duly authenticated.
The credit balance in an account in the name of two or more persons will be payable
as per Operational instructions given / signed by all the account holders in Account
Opening Form. However, the possible cases can be as under:
b) All of them.
Withdrawals will not be allowed against postdated (payable on any future date) and
stale (06 months after issuance date) cheques and against un-cleared funds.
If payments from an account are at any time forbidden by any one or more of the
account holders, the amount will only be payable on the discharge of all the account
holders or the survivor or survivors of them.
9. Dormant Account
All depository accounts like current / savings / BBA etc. which remain non operative
for a period of six months in case of current and BBA account and for a period of one
year in case of saving account, will be classified as dormant accounts.
a) Current / BBA account, after passing one and half year in dormant status, if there is
still no operation in the account for continuous period of two years; the account shall
be classified as inoperative.
b) Saving account after passing two years in dormant status, if there is still no
operation in the account for continuous period of three years; the account shall be
classified as inoperative.
This entails certain restrictions on the operation of such accounts and for reactivation,
the account holder must in person request for a change of status and will produce
original CNIC or Passport or Pakistan Origin Card (POC) or National Identity Card
for Overseas Pakistani (NICOP) and Photo copy for Branch / Bank attestation.
After passing further 8 years in inoperative status, in current / BBA account and 7
years in inoperative status, in saving accounts i.e., if an account is not operated upon
by a customer for a continuous period of ten years; it will be classified as unclaimed
deposit account and will be surrendered to SBP as per the provisions of Section 31 of
the Banking Companies Ordinance 1962.
The Bank may at its sole and absolute discretion close any account, which is not
being operated in a manner satisfactory to the Bank or for any other reason
whatsoever, with or without any prior notice to the customer. The Bank also reserves
the right to terminate, at the Bank’s sole discretion, any other type of relationship(s)
with the customer, e.g. lockers, safe custody, relationship cards, etc. at any time
without assigning any reason.
In case the account is closed the balance will be remitted to the depositor at the
address given by the account holder(s).
Upon closure of an account, the customer must return to the Bank any unused
cheques relating to customer’s account. Alternatively, the customer must confirm in
writing to the Bank’s satisfaction that the unused cheques have been destroyed.
The Account Holder(s) wishing to close the account must withdraw the outstanding
balance, if any, after depositing account closing charges as stipulated by the Bank.
. All accounts where there is no customer's initiated operation since two years and
have nil balances, shall be closed by the bank without giving any notice.
In case of death / bankruptcy, the Bank will stop operation in the account
immediately, after the receipt of official notice or as and when become aware of it
from any other reliable source.
In the event of a death of any one or more of the account holders of Joint account:
a) In case the credit balance in an account in the name of two or more persons,
will be payable to either or any one or more of account holders or the survivors
of the account holders, as instructed by all the account holders in Account
Opening Form (as per Operational instructions), and in the absence of a contract
to the contrary, the credit balance will become payable to the survivor(s) without
reference to the legal heirs of the deceased person or persons.
b) In all other cases, the credit balance will be payable to the legal heirs of the
deceased account holder(s) along with the remaining account holder(s) as per
bank's procedure.
Current Account is opened on the basis of Qard Hasna and offers the account holder
the flexibility to withdraw funds from time to time at his / her convenience.
The depositors shall be made aware that no profit shall be payable on Current
Account. The deposits received by the Bank under Current Account can be used by
the Bank as its equity at its sole discretion for its business purposes including
investments and financings under Shariah compliant modes in any manner the Bank
considers appropriate after approval of its Shariah Advisor.
The minimum initial deposit for this type of account will be Rs. 1,000/ or as per
amount prescribed by SBP.
The account will be non remunerative account, i.e. no profit shall be paid on the
deposit in Basic Banking Account (BBA).
No limit on minimum balance. In cases, where balance in BBA remains 'nil' for a
continuous six month period, such accounts will be closed.
Free of charge ATM withdrawals from the bank's own ATMs. In case of withdrawal
from BBA through the ATM machines of other banks, bank shall recover charges as
per schedule of charges.
14. Profit and Loss Sharing Savings Account & Riba Free Certificates
The relationship between the Bank and customers holding savings and / or Riba Free
Certificate (RFC) shall be based on the principles of Mudaraba, where the Bank shall
be Mudarib and customers shall be Rab-ul-Maal. Further, the relationship is based on
unrestricted Mudaraba arrangement.
Funds deposited by the customer in saving and / or RFC shall be collected in pool(s)
of funds. The Bank may, at its sole discretion, commingle customer’s funds with that
of the other depositors in the pool and / or with the funds of the Bank.
The funds in such pool(s) shall, at the Bank’s sole discretion, be deployed in Shariah
compliant modes such as Murabaha, Ijarah, Musharaka or any other Islamic modes of
financing and or investment.
The updated and prevailing Mudarib share and Profit Weightages applicable to
Savings Account and other investors in the Mudaraba pool will be available at the
Bank’s website, displayed in the Bank’s branches, may be obtained from the Bank
from time to time and/or shall be communicated to the Customer in any other mode,
whether electronic or otherwise, in accordance with the Bank’s prevailing practice.
Shares of Profit / Losses for each calendar month shall be determined under the
policies as mentioned in section 15 below and credited to the customers’ account
within eight (8) working days after end of each period, for the preceding profit
allocation period or on such dates or intervals which the Bank may determine and
calculate as per policy in vogue.
b) Not more than one PLS Savings Account may be opened at a branch in any
one name except in the name of a parent or guardian for more than one child or
for keeping funds of specified nature category by an entity, with the Bank's prior
approval.
Profit and loss on the Mudaraba based deposits would be computed and distributed
on the basis of average daily balance in customer’s account during the profit
computation period.
At the end of each calendar month; Bank and the pool members shall share Profit or
Loss accruing from Business(es) after deducting all direct expenses pertaining to the
Mudaraba at actual in the following manner:
b) Balance of profit after deducting the Bank’s share determined under clause (a)
above; shall be distributed amongst the pool members on the basis of
predetermined weightages. Losses, if any, shall be distributed amongst the pool
members under the principles of Mudaraba on the basis of pool members’ ratio
of investment.
c) In case of loss has been incurred by the Business and was caused by the gross
negligence or willful default of the Bank, the Customer will not be liable to share
in such a loss as contemplated by clause 15.3 (c) above.
For the purpose of smoothening of profit the bank may create Profit Equalization
Reserve (PER) or give Hiba to depositors by reduction of its share of profit sharing
ratio.
PER, IRR and other provisions may be created, maintained and utilized as follows:
a) The Bank may at its sole discretion as per SBP rules, in order to maintain a
certain level of return on investment of depositors, provide for a PER, after
approval of the Shariah Advisor, an amount from the net income of the pool.
b) The Bank may fully or partly utilize the amount of PER to improve the returns
to the depositors during periods when the pool’s profits are below market
expectations.
e) Ratio of PER will be displayed on the notice board of the Branches before start
of the relevant period.
Hiba, may be provided to depositors by the Bank through reduction its profit, for the
following purpose:
a) In order to account for displaced commercial risk, the Bank in the capacity of
Mudarib may relinquish a part of the profit that is due to the Bank, in the favor of
depositors, only after the balance in the PER is fully utilized.
The Bank may at its sole discretion as per SBP rules, in order to mitigate risk of
future losses to investment depositors, provide for an Investment Risk Reserve (IRR),
after approval of the Shariah Advisor, an amount from the depositors profit i.e.
distributable profit net of mudarib share.
Only existing depositors will qualify for share in IRR. As such, the depositor agrees
that he / she / it do not have any right to claim the share in IRR (if any) after the
withdrawal of the deposit.
Allocated but unpaid profits which are not reinvested as per the mutual agreement
will be recognized as liability of the Bank.
5% of all dividend and capital gain on shares income shall be transferred to Dividend
Income provisioning and Capital Gain/Loss provisioning respectively at the time of
liquidation of the pool, part of the provisioning corresponding to interest income of
the company’s total income during that period as declared in published accounts
(whether audited or unaudited) shall be paid in charity and remaining income, if any
shall be reversed so as to become part of net income of the pool. The remaining
portion thus reversed shall be based on Tabarru from the pool contributors at the time
of creation of such provisioning.
In the event that the entire deposit in a Saving Account is withdrawn at a time
during the month when the Mudaraba profits for that profit calculation period
cannot be ascertained, the profit amount in such case shall be calculated using
the profit rate applicable for the immediately preceding profit calculation
period and paid to the customer as soon as possible following which the
account will stand closed.
This payment of profit will be based on the principle of Takharuj i.e. such
allocation and payment to the customer shall be in full and final discharge of
Bank’s obligations to the customer and no further claim whatsoever shall be
made or entertained.
In consideration of receiving the profit amount calculated using the profit rate
for the immediately preceding profit calculation period, the customer agrees to
waive any right he / she / it may have to receive the profit amount calculated
in accordance with the profit rate for the then applicable profit calculation
period and agrees that any such profit amount shall be applied to the benefit of
the remaining account holders, and the date such amount or amounts are paid
shall be the profit payment date for that account.
Foreign Currency current and saving accounts may be established in US Dollars and /
or such other currencies as may be determined by the Bank, as allowed by relevant
regulations in force from time to time.
The Terms and Conditions contained in clause 15 herein above applicable to saving
account shall also apply to Foreign Currency saving accounts.
Foreign Currency accounts, both current and saving are opened and maintained
subject to Foreign Exchange Control regulations and directives of the Government of
Pakistan, or any of its organs / agencies and the SBP from time to time.
The Bank shall use its best endeavors to provide smooth and efficient services to the
customers. Notwithstanding the same, the customer hereby agree and confirm to hold
the Bank and its officers, directors, employees and representatives, agents and
contractors, completely harmless and indemnified, from and against any and all costs,
losses, damages, liabilities, payments and obligations and expenses (including but not
limited to reasonBOPe legal costs) incurred, suffered, sustained, paid or imposed
upon the Bank, arising out of, inter alia:
b) Any claim by the customer or any third party concerning the amount, transfer,
delivery or non-delivery of any product requested through any of the Bank’s
services or any other matter relating to the services.
c) Any action taken by the Bank in reliance upon customer’s instructions which
are:
d) Any taxes or other levies paid or due to be paid by the Bank on payments
made or to be made by the customer, through or pursuant to the Bank’s services.
g) For any instruction not complied with, due to reasons beyond the Bank’s
reasonable control.
The customer acknowledges that nothing in these Terms and Conditions shall be
construed as being a warranty or a representation by the Bank of any guaranteed
profits in respect of funds mobilized on the basis of Mudaraba.
19.3. The customer is aware that all deposits in the Mudaraba pool are exposed to
potential losses arising out of a loss incurred in respects of assets in the Mudaraba
pool. Any losses incurred by the Mudaraba pool in a Profit Allocation Period shall be
borne solely by the Customer (in the capacity of Rab-ul-Maal). If however, the Bank
has also invested its own funds in the Mudaraba pool as Shareek then such losses
shall be shared between the Customer and the Bank proportionately in accordance
with the respective amounts invested by the Customer and the Bank.
The ATM Service shall be subject to the ATM Terms and Conditions.
The customer will be responsible to keep itself fully informed and updated with
regard to ATM Terms and Conditions.
Miscellaneous
Zakat and Withholding Tax and / or other tax (es) levied from time to time shall
be deducted as per prevailing laws of Pakistan. All amounts recovered by the
Bank as additional amounts in relation to a Saving Account shall be paid by the
Bank into the Charity Fund.
ZAKAT is leviable on the assets as described in the Zakat & Ushr Ordinance
1980 (as amended from time to time) on balances which will fall within the
definition of zakatable assets as notified by the Government of Pakistan on
Valuation date each year, provided Declaration (original / attested photocopy) for
exemption from compulsory deduction of zakat is filed on the prescribed
proforma (CZ-50) in the prescribed manner one month preceding the valuation
date except in the case of newly opened accounts.
Charges for services provided by the Bank shall be levied according to the
Schedule of Charges. Charges for transaction on foreign currency accounts will
be recovered in foreign currency only.
The Bank will not obtain any prior permission from the customer for debiting
customer’s account for any expenses, fees, commission, profit, Zakat, tax, stamp
duty, excise duty, etc. payable to the Government (or what so ever) arising out of
any dealing between the Bank and the customer.
The Bank may, without any further express authorization from the customer
debit customer’s account maintained with the Bank for the amount of any or all
losses, claims, damages, expenses or other amounts which the Bank may suffer,
sustain or incur as a consequence of acting upon any of the customer’s
instructions.
Amendment in Rules
Legal
These Terms shall be solely governed by the substantive and procedural laws of
Pakistan. Courts all over Pakistan shall have exclusive jurisdiction in respect of
any dispute relating to any matter contained herein.
Stop Payments
All stop Payment instructions will be accepted in writing and signed by the
account holder(s).
Change of Address
Transfer of Account
However, the account, holder shall be required to submit fresh Account Opening
Form and complete all necessary formalities for opening of account at the Branch
where his / her account has been requested to be transferred.
The Bank shall make endeavors to preserve the secrecy of the account of the
customer. Nevertheless, the customer hereby expressly authorizes the Bank to
disclose the information if such is required by any investigating agency, any
government agency or such person as the Bank feels that such disclosure is
necessary.
Issuance of Statements
B) CASH DEPARTMENT
Cash department is the most important department of the bank. This is sensitive
department of the branch; no other person is allowed to enter in the premises of cash
department. It receives cash from the customers and then deposits it into their
accounts and maintained their balances.
Scroll Book:
When the cash is received at the counter it is recorded in the scroll book
Token Book:
When any cheque or any negotiable instrument is presented it is recorded in the token
book then token is issued. Token number, account number, amount and cheque
number is written on the token book.
Cash Deposits:
Cash officer receives cash along with pay-in slip from the customer. He checks if the
deposit slip is properly filled up containing title of account, account number, date and
amount in words and figures. He also verifies signatures with specimen signature
card. Detail on scroll book and cash receipt voucher should be the same. Cash is
received by the cash officer, twice counted and matched with the deposit slip. The
cash details are written on the back of the deposit slip and are also entered in the
scroll book/ cash receiving register. Cash received stamp is affixed on the deposit slip
along with the signatures of the cash receiving officer. Deposit slip is credited and
posted in the concerned account in the system.
Payment of Cheque:
Customer presents the cheque to officer he first of all checks the balance in the
account of the customer then the date, amount in words and amount in figures,
payee’s name crossing if any, account number,cheque serial number and signatures of
the customer. Account is debited and then the officer cancle the cheque. It is posted in
the system and posting stamp and transaction number is affixed on it. Cheque is
handed over to the cash officer for payment. One more signature on the back of the
cheque to match with the first one, and then cheque is payed to the payee. Cash detail
is written on the back of the cheque. Cash paid stamp is affixed on the cheque. Entry
is passed in the paying cash book.
If payment is of Rs. 50,000 the cashier can make it on its own. If the amount is greater
than Rs. 50,000 to Rs. 100,000 the cashier and officer verify the cheque and sign it
so, the payment will be made. But, if the amount is greater than Rs. 100,000 to Rs.
1000,000 the operation manager also verify the cheque and sign it so, the payment
will be made. If the payment is greater than Rs. 1000,000 the branch manager verify
the cheque and sign it, otherwise payment will not be made.
The bank does not receive these deposits for save keeping purpose only, but they
accept deposits as debts. When banks receive deposit from a customer, the
relationship of a debtor and creditor is established where by the customer become the
creditor and the bank a debtor. When the bank receives amount of deposit as a debtor,
it becomes the owner of it. It may, therefore use it as deems appropriate. But there is
an implicit agreement that the amount owned would be paid back by the bank to the
depositor after a specified period.
These deposits are lent out to different parties. The larger the difference between the
rate at which the deposits are borrowed and the rate at which they is lent out the
greater of the profit margin of the bank. Furthermore, the larger the deposit the larger
will be the funds available for employment; larger the funds lent out the greater will
be the profit of the bank.
Nature of Deposits
Following type of accounts are maintained for deposit purposes:
Current Deposits
Profit & Loss Sharing Accounts
Term Deposits Account
Foreign Currency Accounts
Current Deposits:
In this type of account the client is allowed to deposit or withdraw money as and
when he likes. Because of their nature, these deposits are treated as the current
liabilities of the bank. There is not profit on such deposits. Usually this type of
account is opened by the business.
Under PLS saving account the depositor undertakes to share profit or loss on the
deposits earned or sustained by the bank. Secondly the bank is at the liberty to invest
the funds of the deposits in any avenue, it deems fit. The PLS deposits are invested in
non-interested channels.
The Bank of Punjab deals with two types of Term Deposit Accounts:
CLEARING DEPARTMENT
Clearing is the most important department of the bank .This department receives the
cheque and other negotiable instruments drawn on local branches of other banks.
State bank of Pakistan has clearing house, in which cheque, and other negotiable
instruments are brought by each local bank representatives. Clearing settlement is
made by debiting and crediting the banker’s account, the daily difference in the
clearing between banks may considerable and many differences are adjusted by
means of debit and credit entries in the respective account. Clearing system is help
full for both the customer and saving currency, time and labor.
Clearing
Any instruments which drawn on BOP branches and other banks in same city that’s
instruments are called clearing. A clearing and date stamp is affixed on these
instruments.
INWARD CLEARING
Inward clearing means the cheques which are to be honored by the bank but which are
received through other banks representatives. These are the cheque, which BOP
number of cheques, total number of cheques and amount. This bag is locked with the
special plastic key.
Next day before bank starts its work at 9:00 am the NIFT representative gives this bag
to clearing department head and returns. Clearing department head sorts these
cheques according to PLS, CD, PO, D.D and counts that cheques number are equal to
summary cheque number. Then he checks that cheques are in order, clear writing,
signature of account holder, three stamps, amount in words and figures, date, no
limitation, and bank name.
If he finds any fault, he returns that cheque attaching memorandum, which comprises
of date, Cheque #, amount, Reason of returning. After all this the bank officer enters
these cheques in inward clearing register regardless of returned cheques. Then these
cheques total is matched with NIFT summary.Then these cheques are entered in
computer and debited the accounts of those account holders who issued these
cheques. In posting when the officer finds that account holder has not sufficient fund
or signature are not verified by SSC then he returns these cheques with memorandum.
After doing all these cheques are again kept in that bag which is locked with special
plastic key. With returning cheques a pink colour slip is attached which has the title
“Clearing Return”. After half an hour NIFT representative comes back and takes
this bag back and goes away. The officer circles with red pen in register those
cheques which are returned and writes “R”.
After this, these cheques are totaled and bundles of 50, 50 cheque are made attaching
a list which is named add list. Then two debit or credit vouchers are made with title of
suspense account and the total amount is entered in these vouchers. Then these
cheques are covered with clearing slip issued by NIFT. And these cheques are kept in
bag locked with key and in evening NIFT representative comes and takes that bag and
returns.
If the cheques are drawn on same bank or on other branches of this bank then it is
called clearing within bank. Such Cheques are marked with transfer bank.
Transfer Cheques:
The cheques which are collected and paid by the same branch of BOP.
Transfer stamp
Computer posted
Crossing/ Branch stamp
Payee account credited
Signature verified
Clearing Cheques:
The collecting bank can receive the amount of cheques from the paying bank from the
clearing house on behalf of the customer’s account.
REMITTANCE DEPARTMENT
Remittance is a major function of the bank. It is the transfer of money from one place
to another place or same person. By proving this service to the customers the Bank of
Punjab earns a lot of income in the form of service charges.
Importance of P.O
The main advantage of pay order is that it can not be dishonored by the bank. When
payment is required to make with in the city we can take this service because in case
of cheques there is a possibility of dishonoring by the bank but pay order can never be
dishonored.
An application form is given to the customer to fill. Two signatures are taken on the
form one for request and other for receiving the instrument. All the particulars of
application form are checked and bank commission charges and withholding tax is
written on the application form. If customer is maintaining his account with the
branch, he can give cheque for total amount of instrument plus bank charges. Cheque
and application form is then given to the officer. Officer post the
cheque and sign the application form in case of payment received. If the customer
wants to pay cash, then cash is deposited by the customer along with the bank charges
and withholding tax.
Application form is then given to the officer for issuance of instrument. He enters all
the particulars of the application form in the system and computer gives an auto
When instrument is presented for payment, it is posted in the system and canceled by
the remittances incharge after proper security.
1. A draft voucher is filled which contains the, name of the parties involved,
date, amount to be sent, account number (if D.D is crossed).
2. A credit voucher is filled in order to get the excise duty and exchange
commission.
3. The sender deposits the total amount.
4. Then the cashier sends the cash receipt voucher to the accounts department
and the account records the amount paid in his cash scroll.
5. Accountant gives the D.D leaf along with the D.D voucher to his assistant who
records the sender’s name, amount and receiver’s name. After writing all the
information in the D.D register he gives it to the officer along with the D.D for
authentication.
6. After authentication the D.D is handed over to the sender and bank sends the
advice to the concerned branch. So when the party presents the D.D in the
concerned branch its payment could be made.
Cancellation of D.D
In some cases the D.D is not presented for payment at the drawer bank but it is
presented for cancellation at the issuing branch. The payment of such draft is to be
Purchaser or Sender
The purchaser is the person who sends the money to a particular person payable at a
certain branch.
Issuing or Branch
The branch from where the demand draft is issued to another branch of the same
bank.
Drawer Branch
Branch in which the draft has drawn and called upon to pay the amount.
Payee
The person who is entitled to receive the amount after presenting the demand draft in
the drawer branch.
Procedure
1. First a voucher is filled in whish the sender writes the amount to be sent,
name, account number of the receiving person with the branch name and date.
2. A credit voucher is filled in order to deduct exchange, postage charges
according to the amount of the mail transfer.
3. The sender deposits the total amount in the cash department.
BILLS DEPARTMENT
This department deals in bills for collection for all kinds such as cheque, draft, and
pay orders, call deposits etc. with outstation branches of BOP or with other banks. It
provides service to their customer to get payment from the nearer bank at nominal
charges.
Types of bills:
There are two types of bills:
Clean Bills
Documentary Bills
Clean Bills
These are negotiable instruments sent for collection on behalf of customer i.e.
cheques, drafts etc
Documentary Bills
These are the bills accompanied by documents such bill of lading, trust receipt,
railway receipt, sales invoice, receipts of courier service etc having title on behalf of
their customer. If payment is made other than cheques then this mode is used. It is an
agreement between two parties. But in 99% cases clean bills are used
OBC register is also maintained for proper record keeping of outward bills. This
register is updated two times once at the time of receiving bill from clients and the
other when the confirmation advice of this cheque is received from the payable
branch.
In case of verification of bills is approved, banks debit the account of the respective
account holder and send a debit advice to the originating branch and at the same time
credit the head office account for inward bills IBC register is maintaining for keeping
the proper record of the bills.
Requirement:
Step:
Connect to www.expressmoney.com
Click receive now
Enter pin code
Match data of customer
Take print of verisys of customer and payment receipt
Attach ID card copy
Take signature of customer on payment receipt
Put stamp of signature verified and original CNIC stamp on copy of CNIC
Enter the amount in system module 30789 and send that voucher to print and
transaction number is given by system is written on payment receipt.
Debit voucher is authenticated and sign by the officer dealing with the whole
procedure. If transaction is 2 million or more then it is authenticated by
Operation Manager.
Two signatures of customer are taken on back of voucher then customer take
its payment from cash counter.
At the end of day entry of payment which is already entered in system the advice of
all payment is printed and has signature of operation manager and head of outward
and foreign payment dept.
ACCOUNT DEPARTMENT
For every transaction there is Voucher prepared and through these vouchers contra
entries are passed under different head. Good working of accounts mainly depends on
the voucher system. Accounts department is responsible for proper handling and
maintenance of vouchers of different department
Reports
It generates reports like Statement of Account Activity (a report on the activity of all
accounts at Bank, Statement of Affairs (a report on the assets and liabilities of Bank,
Statement of Profit & Loss (a report on the income and expenditures of Bank. These
reports can be generated at daily, weekly, monthly, quarterly or yearly basis as
required by the bank.
Storage of Records
Accounts Department also has the duty to store vouchers and system generated
reports.
Activity Checking
Daily activity checking and monitoring is done by the accounts department of the
whole bank
Stages of activity checking:
There are four stages in which activity checking takes place:
banking. Basically it was general banking which is usual in every branch of all the
commercial banks.
I have ingested all of the banking hours there and have a close eye how the work has
been done. The normal banking time is 9:00 am to 5:00 pm where as in Ramdan; the
timing is 8:30 am to 3:00 pm.
1. Deposits
2. Account Opening
3. Remittances
4. Clearing
5. Accounts
6. Utility Bills Collection
DEPOSITS DEPARTMENT
I spend first week of my internship in deposits department here I perform the
following tasks:
REMITTANCE DEPARTMENT
For Second week, working in remittances department, under OGII Mr. Nasir
Hussain the duties assigned to me included:
The account of the creditor for whom the telegraphic transfer are sent, is credited
and a message is sent to the originating branch that we have credited the account
of the relevant customer. A credit voucher is made for crediting the account of
customer.
Introduction of customer
NADRA Verification
Title of account
Address
CNIC number
And after all the bank internal inquires, the cheque book will be issued to
the customer within 10 days.
CLEARING DEPARTMENT
I spend fourth week of my internship Clearing is the banks function in which the
cheques of other banks are collected to deposit into the customer’s account. The
clearing department receives all kinds of cheques drawn at different banks and sent
1. The cheques and drafts are collected by the customer service officer. I use to
enter the daily collected cheques numbers, their amounts and relative bank in the
clearing register. It is necessary that it should be a crossed cheque as it will be
deposited in the customers account.
Those cheques which are of outstations branches are sent to their relative bank’s
branch via TCS at the end of the working hours. The drafts are sent to the relative
bank’s main branch. When these are returned in almost three days, then we deposit
the cheques amount in customer’s account because it’s the confirmation process.
NIFT
Send report to the bank
Delivered cheques to the respective bank
ACCOUNTS DEPARTMENT
I spend fifth week of my internship in accounts department.
I had to do daily activity checking, collecting vouchers, cheques etc from all
departments, sorting vouchers according to their categories, checking activity,
packing
I calculated debit and credit vouchers for head office and noted them in their
voucher covers.
Sorting the cheques of different accounts and arrange them transaction wise. I
arranged the daily vouchers 3 times a day. Their arrangement was such that
first the PLS vouchers, then CD vouchers, and then they band in the same
pattern with a voucher cover. Ticking of voucher and the next day their entry
in the register is also an assigned task.
I made the product sheet on excel. These sheets calculated the semiannual
profit of individual client. There were statements being given to me from
whom I had to select the amount, profit etc and enter it in a prepared work
sheet.
11 ) FINANCIAL ANALYSIS:
MARKETING STRATEGY
Organizations missions are used as a context and SWOT analysis is one of the
most important steps in formulating strategy; managers avoid weaknesses and
assess internal strengths.
STRENGTH:
BOP bank officers are considered as the most able professionals in the banking
world. In my observation BOP officers interact with the customers as they are
their personal friends and used to solve their problems as their own.
The customer's perception for BOP is very high due to compassionate and
personalized services of the officers. Customers feel secure while dealing with
BOP and they also have trust.
The branches of BOP are opened in commercial areas in order to save customers
from facing problems to reach the bank.
Internal computer system in BOP is very reliable and easy to use. Every
information is computerized.
BOP is 51% owned by Punjab government. BOP has an asset base of Rs. 165
billion and total deposits of Rs. 138 billion.
BOP is adopting measures to monitor and minimize risks that are related to
banking industry.
WEAKNESS:
BOP has number of products and services more than commercial banks
but any advertisement on electronic media is not given.
There is a lot of concern of SBP on the bank's control that is the weakness
of BOP.
BOP has negative profitability every year as its director and presidents
played trick with the bank by involving themselves in a fraud of billion of
rupees.
OPPORTUNITIES:
A number of financial schemes like special deposit accounts that have unique
features are introduced by BOP. In past few years, deposits of BOP have been
increased by 40%.
THREATS:
Customers are lacking trust in BOP due to which deposit growth is slow.
MARKETING ANALYSIS:
BOP has lack of promotional activities due to which marketing department is very
weak. But recently print media advertising is started which will increase customer
base and helps in developing BOP's reliability
Product:
Products involved are Finance, customers, & agriculture.
Due to economic crisis price charged is high and the lending rate ranges from 18-
19%. The whole banking system is under the influence of price factor. So it is
very important.
Promotion:
BOP is cutting down its cost by cutting off its advertising expenditures.
Place:
BOP does not involve middleman and sellers as it is selling its services and
products through its branches that are spread across the country.
MARKETS SERVED:
Agriculture market:
Corporate customers.
FINDINGINS
During my internship period, I had found the following weaknesses:
Some employees in BOP just do the same job, they become master of that job
but they know nothing and or their knowledge about their job.
Pay scale of BOP employees is less than other banks, which is an indication of
discouragement among employees.
Employees don’t have direct access to higher authority. This creates a
frustration among employees.
The size of almost all branches of BOP is very small which creates difficulty
for both the customers and employees.
Based on findings, I would like to suggest some recommendations to BOP which will
enBOPe the bank to compete with other banks more efficiently. These suggestions are
based on my experience with the bank.
Many of the bank employees are just master in their own field. They don’t
know the job of other seats. It creates a problem for the Manager when any of
the staff members is absent. I would suggest that each employee should know
the job of almost every seat in his or her branch.
Specially, the old officers who are experienced in their relative fields don’t
know outside their working boundaries. They should have experience at all
outlooks of banking.
RBG has been striving to capitalize Customers are always the top priority for Retail
Banking, and we offer a range of solution-driven and cost-effective products and
services that cater to all segments of society. We believe in excellence and innovation.
RBG has been striving to capitalize on the right opportunities for a mix of the
population; we provide solutions!
With our strong presence through our wide spread network of 327
conventional branches all over Pakistan, we offer a wide and innovative range of
banking services, with a mix of value added services like Automated Teller Machines
and Virtual Retail Banking, known as Online Banking. To facilitate overseas
Pakistanis, we provide Home Remittances services in all branches.
Our customers are what make us a true people’s bank. We offer our expertise to all
segments of the society, including dedicated products for senior citizens, ladies,
agriculturists and minors, besides various products for business concerns.
Skills Acquired
During my internship i learned a lot of new things from the staff of bank. As working
in the bank was my first exposure to working environment so i learned m any skills
during this period. All staff was very helpful and was very co-operative in improving
my skills. The skills i learned during internship are as follow.
While working in the bank i learned how to deal with the customer. Customers are of
different human nature and we have to treat every customer according to his nature.
Customer are the most important part of any organization. So it’s very important for
organization that how they talk with them and how they solve their problems. This
thing i learned very well during internship.
Communication Skills:
In practical field, i learned how to communicate with other people, with your
colleagues with your authorized and with your employs. I also learned who have the
power and who reports to whom. During my exposure to working environment of the
bank i gained the practical knowledge of how to communicate with different people.
While working, i also learned how to manage time in difficult situations and how to
meet the deadlines of various operations. All staff members were very efficient and
co-operative in this regards. Some other skills and knowledge i learned during
internship are: account opening procedure, how to operate lockers, some other
financial terms and knowledge etc.
In the end i am grateful to all staff members who helped me a lot in improving my
skills.
14) CONCLUSION
Working with BOP bank was really a wonderful experience for me. During my
internship, although I got some limitation but I have learned a lot about the corporate
world. Though, it was my first practical training but it was really a great time to work
with such a bank. BOP has an edge over other local banks, as it was the government
bank. All the staff was very kind and appreciates my work.
This internship has also developed professionalism in me and was very helpful in
understanding the behavior of different customers and stakeholders with whom we
have to deal.
Conclusively, the bank is working hard to get into the race of being best and I am
looking a very prosperous and bright future for BOP as it is remaining continuous
updated with its customer’s needs and new technologies and innovations around.
15) BIBLIOGRAPHY
Oral
Books
Ghani, M.A. (2009), Advanced Accounting (13th ed.) PAK IMPERIAL BOOK
DEPOT
Meigs and Meigs (2008), Managerial Accounting (9th ed.) PEARSON BOOK
SELLER
Written
Annual Reports
Records
Internet
www.bop.com.pk
www.pakboi.gov.com
www.google.com
16) Glossary
LIQUID ASSETS
Assets that are held in cash or in a form that can be converted to cash readily, such as
deposits with other banks, bills of exchange, treasury bills.
MARKET CAPITALISATION
Number of ordinary shares in issue multiplied by the market value of share as at the
year end
PRICE EARNINGS RATIO (P/E RATIO)
Market price of a share divided byearnings per share
SUBSIDIARY COMPANY
A company is a subsidiary of anothercompany if the parent company holdsmore than
50% of the nominal value ofits equity capital or holds some share in itand controls the
composition of its Boardof Directors.
17) Appendix
Annexure-I
9. DATE OF JOINIG:01-08-2015to15-09-2015
10. DURATION:6 WEEKS
:
CERTIFICATION
under my guidance. This report has not been submitted to any other University or