Passion Reborn": Internship Report On Bank of Punjab

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INTERNSHIP REPORT ON

BANK OF PUNJAB

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Internship Report of Bank of Punjab

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Scanned Copy of Training Completion Certificate

Areas Covered by Report

The report I am submitting to my honorable teacher contains the following areas:

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:

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o Treasury / Finance Department
o Foreign Trade Department
o Human Resource Department
o Consumer Banking / Operation Department
o Credit and Advances Department
o Risk Management Department
o Audit & Inspection Department
o Sales Marketing and Media Department
o Islamic Banking Department
o International Banking Divisions

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

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Mission Statement/Vision Statement 12

Objectives 13

Organizational Structure/Hierarchy 14

Products/Services/ Departments 19

General Banking at BOP 37

Work Done By me 72

Ratio Analysis& Interpretation and

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.

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According to my internship program, I completed my six weeks internship at
Bank of Punjab, Nowshera virkan Branch disst.Gujranwala. Bank of Punjab was
established in 1989 and was given the status of a scheduled bank in 1994. The bank of
Punjab is listed at Lahore and Karachi Stock Exchanges and the Bank is working as a
scheduled commercial bank with a network of almost 324 branches at all over major
locations in the Punjab.Its 7 main departments are:

 Account opening Department

 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

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environment and to make optimal use of the supervised on job training. Sound
interaction with colleagues and learn the art of public dealing and managing
crisis in the crucial situations and polish their skills in problem solving.
 I consider myself fortunate that I can avail this opportunity to do internship in
one of the leading Commercial bank named “Bank of Punjab, Nowshera
Virkan branch Disst. Gujranwala”. The branch is composed of highly
qualified and competent professional staff and equipped with latest
technology. The staff members are articulate, diligent, well manner and are
honest to their job and working under the dynamic supervision and guidance
of innovative Branch manager Mr. Mohammad Riaz Cheema.
 I want to mention the staff members those are encouraged, helped and support
me in completing the internship and compilation of this internship report.
Without their help, support and sincere appreciation, I would not be BOPe to
complete this task.As banks are generally very much sensitive to their secrecy,
this branch has been extraordinarily kind to let me handle their delicate
operations and also assign me some assignment and tasks.
 Throughout the tenure, the staffs were forthcoming, supportive and
approachBOPe. I feel that the experience was highly rewarding. Bank of
Punjab was really ideal and inspirational venue to understand the internship.
My time at Bank has flown away very quickly. It has been a brilliant and very
informative professional experience. My six weeks tenure at Bank of Punjab
has been very rich and valuable on job work experience. I feel confident
looking towards the future professional undertaking.
 At the end, I wish to thanks all the staff members who encourage, appreciate
and support me in every moment when I need help I have made in such a short
time and also I shall always remember this short memorable training
experience which flourish our studied things at University of the Punjab
Gujranwala Campus and make our professional skills effectively.

3) Dedications

I Dedicate This Work To My

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Honorable Parents

 Who have a great source of love, affection and encouragement throughout my


academic career and their matchless sacrifices in the process of my upbringing
make me respectful to all human talk. And who are always a great source of
support & encouragement for me they would be very proud to see this report.

Honorable teacher

 Dedicated to my teachers without whom I wouldn’t be able to be the same.


 I want to thank Sir Hafiz Imran Akram for the support and dedicated
assistance throughout the session.

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.

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The Bank of Punjab plays a vital role in the national economy through mobilization of
local resources, promoting savings and providing funds for investments. The bank
offers attractive rates of profit on all deposits, opening of foreign currency accounts
and handling of foreign exchange business for example imports, exports and
remittances, financing, trade and industry for working capital requirements and
money market operations. The lending policy of bank is not only cautious and
constructive but also based on principles of prudent lending with maximum emphasis
on security. As agriculture is considered as backbone of our economy the Bank of
Punjab has introduced "Kissan Dost Agriculture Finance Scheme" to small
farmers.

 BOP Nowshera Virkan Branch

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.

Structure of the Branch


The branch has got sufficient staff to meet the needs. The staff is less and present
officers got burdened when some times more than usual customers come especially in
the beginning of every month. The request for more staff has been sent to the

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Regional office since 2015 but no appropriate actions have been taken still now. If we
compare it to the other banks we come to know this staff is far less than them. There
is no system administrator, only one cash officer and one billing officer is there which
is not appropriate for such a busy branch. The burden is accumulated on few peoples
and there is no chance of relief in near future.

Designation No. of Employees


Branch Manager 1
Operation Manager(OG-l) 1
Officer Grade ll 1
Officer Grade lll 2
Cash Officer 1
Messenger 1
Gun Man 2
Peon 1

Major Customers and Markets of BOP


Almost people of every field of life are the customers at this branch. During my stay I
encountered government servants, businessmen, pensioners, house wives, zakat
deserving peoples and some walk in customers.

Some of the major customers of Bank of Punjab are:

 Educational Institutes

 Agriculturists

 Pakistan Telecommunication Private Limited

 WAPDA

 Pharmaceutical Companies

 WASA

 TMO

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Market is really very dynamic and challenging. It is really tough job to survive in a
locality where 3 private and 2 other semi government banks are already operating.
Every bank gives its own attraction and gains customer’s loyalty at times through
marketing activities and with more advanced services.

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.

5 ) VISION AND MISSION STATEMENT

 Vision Statement

“To be a customer focused bank with service excellence.”

 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

 Our Customer: As our first priority.


 Profitability: For the prosperity of our stakeholders that allows us to constantly
invest, improve and succeed.

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 Corporate Social Responsibility: To Enrich the Lives of community where we
operate
 Recognition and Reward: For the talented and high performing employees
 Excellence: In every thing we do.
 Integrity: In all our dealings.
 Respect: For our customers and each other

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.

1. To provide speedier services to the common man.


2. To provide the highest rate of return to the shareholders by achieving good
profitable growth.
3. Ensure that its performance in all facts of its operations more than matches
that of its competitors.
4. To enter into financing contracts and to mobilize resources in local and now in
foreign currencies consistent with the objects of the bank.
5. Maintains a comprehensive range of domestic and international activities.
6. Act as a reputable efficient and responsible organization.

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6 ) Organizational Structure

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.

1. Regional Office Lahore.

2. Regional Office Rawalpindi.

3. Regional Office Gujranwala.

4. Regional Office Faisalabad.

5. Regional Office Multan.

6. Regional Office Karachi / Quetta.

7. Regional Office Peshawar

Rests are the branches working under these regions which are almost 324 in all over
Pakistan.

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Board of Directors

Name Designation

Mr. Safdar Javaid Syed Chairman


Mr. Naeemuddin Khan President
Mr. Azhar Hameed Director
Mr. Haroon Khawaja Director
Mr. Farooq Ahmed Awan Director
Mr. Naveed Masud Director
Mr. Mujtaba Jamal Chaudhry Director
Mr. Shafqat Ellahi Director
Mr. Shafqat Mahmood Director
Mr. Tariq Mahmood Pasha Director
Mr. Viqar Ahmed Khan Director
Mr. Raza Saeed Secretary To The Board

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Organizational Hierarchy

Central Management Hierarchy

CHAIRMAN

BOARD OF DIRECTORS

MANAGING DIRECTORS

DIVISIONS

BRANCHES

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Bank Management Hierarchy

BOARD OF DIRECTORS

CHAIRMAN

SENIOR EXECUTIVE VICE PRESIDENT

EXECUTIVE VICE PRESIDENT (EVP)

VICE PRESIDENT (VP)

ASSISTANT VICE PRESIDENT (AVP)

OFFICER GRADE-I (OG-1)

OFFICER GRADE-II (OG-2)

OFFICER GRADE-III (OG-3)

CASH OFFICER

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Hierarchy on the Basis of Power

Chairman

Managing
Director

General
Manager

Regional
Officer

Area
Manager

Branch
Manager

Operation
Manager

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 7 ) PRODUCTS /SERVICES/ DEPARTMENTS

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.

 Current Account (CD):


Current account is a type of chequing account that banks offer, this account does not
provide any profit on it and neither zakat is deducted on this account. There is no limit
of transactions. There is a facility of credit also available that is running finance on
current account.
The major segments of this account are sole proprietors, partnerships, companies
(both private& public) and any other individual that wants to open their account and
not earn profit or pay zakat on their balances.

 BOP Basic Banking Account (BBA):


The minimum initial deposit will be Rs.1000. no profit will be payable. No fee
(service charges) charges for maintaining such account will be charged. There will be
no limit for maintain minimum balance. A customer with a BBA, does receives an
ATM card.
In the cases, there balance in BBA remains “NIL” for a continuous 6 month period,
such accounts will be closed. The segment that this account is targeted is towards the
salaried individuals that have just started their professional careers, students or any
other individual that may want to open an account with a small amount of money.

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 BOP Tijarat Account (BTA):
In order to further facilitate the managers in targeting customers, it will be at the
discretion of the manager to offer the incentive packages from day one. The product is
available for all customers who are eligible to open current account as per bank’s
criteria i.e.

1. Minimum monthly average balance from Rs. 50,000 & over.


2. Monthly account maintenance charges will be applicBOPe if account balance
falls below Rs 10,000/-
3. Inter-city/within-city On-line deposits/withdrawals charges are Rs 5/-flat
4. PO/D.D/MT charges as Rs 5/-flat

 BOP Supreme Current Account:


Foreign currency account can be opened in four currencies namely US Dollars, UK
pond sterling, Yen and Euro at any of the authorized branch.

Profit And Loss Sharing Term Accounts

BOP Pehlay Munafa Deposit Scheme (profit in advance):


This is a fixed deposit product with advance payment of profit and free ATM/Debit
Card. The deposit can be invested for 3, 6, 12, 15, and 18 months. The term account

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can be opened singly or jointly. Minimum investment is Rs. 50,000/-. No maximum
limit.

 Munafa hi Munafa term Account (monthly payment of profit):


The product is available to all type of customers who are eligible to invest in term
deposit as per bank’s criteria. . The term account can be opened singly or jointly.
Minimum investment is Rs. 100,000/-. No maximum limit. Profit will be paid on
monthly basis.

BOP TAQWA ISLAMIC BANKING

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.

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Shariah Board

MUFTI MYHAMMAD ZAHID

(Chairman Shariah Board)

Mufti Muhammad Zahid is a renowned personality in the field of Shariah having a


long association of 26 years while serving as a teacher in various branches of Islam &
Arabic language, Vice President of Jamia Imdadia Faisalabad and member of its Dar-
ul-Ifta since 1989.

Mufti Muhammad Zahid is working as General Secretary Centre for Islamic


Economics, Faisalabad, Member Regional Focus Group on Islamic Banking State
Bank of Pakistan, Member Shariah advisory cell International Islamic University
Islamabad, Member Executive Committee International League of Islamic Literature
(????? ????? ???????? ????????) Pakistan Chapter, External Examiner for viva-voce
of thesis of LLM (M. Phil.), Faculty of Sharia & Law, International Islamic
University, Islamabad, Member Board of Studies Faculty of Sharia & Law (Dep.
Islamic Law) International Islamic University Islamabad, Member Ulema Board PIPS
(Pak Institute for Peace studies), Member consultancy group Centre for Islamic
Business Riphah International University,Chairman of the Shariah Supervisory
Committee of Bank of Khyber and Chairman Shariah Board of Askari Bank Limited
and Shariah Board Member of MCB-ArifHabib Islamic Fund.

Mufti Muhammad Zahid has authored various publications including ?????? ???????
?? ???????)) (translation from English to Urdu of the work of Mufti Muhammad
TaqiUsmani).

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Mufti Muhammad Zahid holds Shahadh Al-Alamiyyah (????? ????????) from Wifaq-
ul-Madaris, Al- Arabiyyah Pakistan and Masters Degree in Arabic from International
Islamic University, Islamabad.

Dr. MUFTI EJAZ AHMAD SAMADANI

Member – Shariah Board

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 is the Faculty member of Centre for Islamic Economics, Vice Chairman of


“Takhassus fi Al Dawa” in JamiaDarulUloom, Chairman Shariah Board Maldives
Islamic Bank and Member Shariah board of various banking and non-banking
financial institutions in Pakistan.

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

Resident Member Shariah Board

Dr. Muhammad Mushtaq Ahmed is a renowned Shariah scholar with proven


experience of Islamic Banking and Finance. Dr. Mushtaq has preeminent academic
background in Islamic Studies & Islamic Banking and he did his Doctorate (Phd) in
Islamic studies/ Shariah with research topic of “Islamic Banking Practices - Shariah
Perspective”. He specialized in Fiqh, Iftaa and Shariah from DarulIftaaWalIrshaad
Karachi Pakistan; he has distinction as Gold Medalist in M.A Islamic Studies
(Shariah)/Aalimiyya from JamiaDarulUloom, Karachi.

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.

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Bai Misaal Term Deposit (profit on maturity): Islamic Products

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.

On deposit side, we are serving our customers with following products;

 BOP Taqwa Saving Account


 BOP Taqwa Current Account
 BOP Taqwa Riba Free Certificates
 Margin Munafa Account
 Cash Management Facility Account

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;

 Ijarah finance facility


 Murabaha finance facility
 Istasna finance facility
 Musharakah finance facility
 BOP Taqwa Car Ijarah

We are determined to facilitate our valued customers through adding more beneficial
schemes to our product basket.

Minimum investment is Rs. 100,000/-. No maximum limit. Profit will be paid on


maturity along with principal amount.

In case of pre-mature encashment, corresponding rate applicable to the period of


retention then declared by the bank will be paid, provided deposit is kept for a period
not less then 7 days. The profit shall be paid on normal term deposit rates of that time.

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 Senior Citizens Term Deposit (monthly payment of profit):
This is a fixed deposit product with high rate of profit payable on monthly bases with
a fixed tenure of one year. The product is available for senior’s citizens having age of
55 years and above and are eligible to invest in term deposit as per bank’s criteria.

Minimum investment is Rs. 100,000/- while maximum deposit limit is Rs. 3,000,000

Profit And Loss Sharing Chequing Accounts:

 Profit Loss Saving Accounts (PLS):


These types of accounts are designed to encourage the saving habit of the customer
and lead to long term or invest relationship. Bank saving account are in the nature of
deposit accounts and are not normally available for drawings. PLS saving accounts
can be opened with the minimum sum of Rs. 100

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.

 Young Lions Saving Accounts (YLS):


BOP introduces a whole new banking experience aspiring youngsters. The product is
availBOPe for all children less than the age of 18 years to open PLS minor saving
account with their parents/guardian as per bank rules. The profit will be credited on
monthly basis in the respective account.

However for renewal, charges will be applicBOPe. Free first 25 leaves cheque book
will be issued at the time of account opening.

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 Gharayloo Saving Account:
This is a saving bank product available for all housewives who are eligible to open a
saving account as per bank’s criteria. The account can be opened singly or jointly
with husbands.

Minimum initial deposit will be Rs. 10,000/-. Unlimited transactions (debit/credit). In


case balance falls below Rs. 10,000/- account maintenance charges will be applicable.

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:

Commercial finance is of three types:

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.

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2. Demand Finance:

Credit facilities extended against registered mortgage of property (i.e., land/buildings


constructed or to be constructed) is by nature classified as a Secured Advance. A
formal charge on the property is established and recorded with the Registrar Land and
Property termed as registered mortgage. Advances are also made against equitable
mortgage of property, whereby the original Title Deed, are deposited with the Bank as
Security and the charge is registered with the registrar SECP.
In case the Finance is allowed to Limited Companies, where the original title
documents of Land/Building and other Fixed Assets are held by the senior charge
holders, our charge (Pari-Pasu or ranking) as approved by Credit Committee, shall be
recorded with the Registrar Securities & Exchange Commission of Pakistan (SECP).
However, in case of Pari-Pasu Charge, NOCs from the senior Charge Holders shall be
obtained before registration of charge with SECP. In case of borrower’s failure to
liquidate the obligation or on classification of the advance to “Non-Performing” the
Bank has a legal recourse to apply for a decree in a court of law, to sell off the
mortgaged property through auction as ordered by the court.

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.

1. Kissan Dost Agricultural Finance Scheme


Such type of scheme provides farmers a real plate form to accelerate. The basic
purpose of this scheme is to provide financial facility to farmers for purchase of inputs
(Seed, fertilizer, pesticides, fungicides etc). Maximum limit is of Rs.500000
according to per acre of the crop. Security is charges on Agriculture Land through

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Agriculture Pass Book. The borrower will have to arrange life assurance under the
Bank’s charge.10% mark-up per Annum.

2. Kissan Dost Tractor Finance Scheme

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).

3. Kissan Dost Aabrari Scheme:

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).

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 Business Promotion Finance Schemes (Consumer Finance)
1. BOP Car Loan
2. BOP Assaish Loan
3. Quick Cash
4. House Loan

1. BOP Car Loan


BOP car loan is a demand financing facility to purchase brand new locally
manufactured/Assembled cars for personal use. This facility can be availed by
salaried person of different nature and by the business persons. All must have the
holdings of CNIC.

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2. BOP Aasaish Loan
BOP Aasaish loan is demand finance facility for purchase of consumer durBOPe
goods like TV, Refrigerators, Mobiles, Microwave Oven, Fans, Audio/Video system
etc with no down payment, in addition with the free home delivery. The financing
tenure of this product is max 36 months. The nature of employment should be salaried
or the business man.

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.

It is a running finance facility provided to salaried individuals through their bank


accounts. You can get up to 50,000 and 500,000, base on your income.

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4. House Loan:

If you are a government employee, you are in private employment, businessman or a


professional, you can avail this facility.

The amount of loan that can be availed:

 For the purpose of purchase of house flat or construction of house the


minimum loan is Rs.100, 000 and the maximum depends on the amount of
debt. Debt/equity should be 70:30
 For house improvement and renovation the minimum amount is Rs. 25,000
and the maximum depends on the amount of debt. Debt/equity should be 20%
of assessed value

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 SERVICES

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.

Online cheque deposit


Taking another step towards customer convenience, BOP now offers transactional
convenience across all its 273 branches.

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Customer can deposit cheques/instruments in any branch of BOP across Pakistan and
can receive credit in account maintained with parent branch. Charges are applicBOPe
according to the accounts.

Inward Home Remittance


BOP provides the services of inward home remittance from anywhere in the world. It
is easy, safe, reliable, and fast way of transfer of money.

All branches of BOP across Pakistan working with partners for payment of inward
remittance from UAE, USA, Europe and other countries.

Automated Teller Machine (ATM)


Through the ATM’s Customers have access to the various services such as
withdrawal, balance enquiry and mini statement? Complete security is ensured
because access to the account is only possible by entering a four digit personal
identification number (PIN) known only to the account holder. Cash withdrawal limit
is up to Rs.20, 000 per day.

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E- Banking
BOP is currently offering window-based online banking to its customers, which gives
access to information on their accounts and the liability to act on the latest
information received over the net.

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.

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Agricultural Finance

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.

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Agriculture Loans

Nurtures the best in nature

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Our Strategic Business Plan identifies Agriculture as a priority sector. Agriculture is
the base on which the edifice of national economy is built and, needless to emphasize,
also constitutes the fulcrum for poverty alleviation, employment generation and over
all prosperity of the farmer.

Our countrywide network of branches, that too predominantly at Tehsil level/remote


rural locales and environs, affords us advantageous flexibility, outreach and
demographic coverage to access and serve the Agrarians at their convenience on their
doorsteps. Our staff includes over 125 professionally qualified and well trained
Agriculture Credit Officers, fully conversant with latest farming procedures and
practices and well versed in customs, norms, social ethos and aspirations of our tillers.
Through our team, we are actively involved in disseminating information, imparting
knowledge and rendering practical assistance at the level of every individual
customer.
We posess the scientific wherewithal to encourage farmers to invest in state of the art
equipment, tools and implements etc. in the Dairy sector, especially in the wake of
ever rising demand for Dairy Products. We enBOPe our customers to achieve even
greater productivity by enBOPing enhanced milking capacity, quality assurance,
proper preservation and secure storage, as well as transportation to processing
facilities. We have also recently launched Livestock Development initiatives, while
our scheme for Fish Farming too has gained great popularity and success.

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Retail Finance

RFD is catering needs of individual customers by offering them a mix of consumer


products as well as of commercial/SMEs clients through its carvan fleet financing
product. RFD has designed its innovative Products to meet customers’ needs &
provide state of the art services through dedicated Consumer Financing Centers
(CFCs) present across Pakistan. Moreover, we are pioneer bank in solar financing and
we are offering customized solutions on very reasonBOPe rates to various market
segments.

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.

The activities are focused on achievement of desired objectives on following RFD


core functions;

 Manager Business Development, marketing, promotion, Processing and


collection & recovery of following products

o Advance Salary loan


o BOP Solar
o Car Lease-Cargar
o Apna Ghar House Financing
o Carvaan Fleet Financing
o Yellow Cab Scheme
o Ashaiana Housing Scheme
o Apna Rozgar Scheme

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.

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Services being offered through these 10 branches include origination & sales of
banking products that meet the expectations of its ever growing client base. Dedicated
teams of Relationship Managers ensure the delivery of our entire range of financial
products and services to our clients and provide tailored financial solutions to the
customers with respect to their business needs.

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.

 General Banking of the Bank of Punjab

ACCOUNTS OPENING DEPARTMENT

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.

 Major Responsibilities of Account Opening Department

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

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the details provided by the customer. But in case the contract is acceptBOPe to both,
the next step is official account opening.

The Bank of Punjab is offering basically two types of account:


 Current Deposit Account
 Profit and Loss Sharing Account

1. Current Deposit Account


Current account is a running account that is continuously in operation, by the
customers on all the working days of the bank. Customers can withdraw the amount
from the bank without prior notice. Bankers usually don’t pay interest on these
deposits as they can withdraw without notice.
These accounts are of various types:
 Individual Account
 Joint Account
 Proprietorship account

 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

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Joint Account
When two or more persons neither partners, nor trustees, open an account called as
joint account
Documentation:
For opening a joint account following documents are required:
 Copy of CNIC of both the partners
 Source of fund
 Proper identification (introduction)
 Two passport size photographs of both the partners (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.

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This account is opened on provision of partnership deed which can be registered as
well as unregistered. A letter of partnership deed is also being obtained for opening an
account signed by all partners.
Documentation:
For opening a partnership accounts following documents are required:
 Copy of CNIC/Passport copy of all partners
 Proper identification (introduction)
 Status of the firm (in case of registered firm)
 Attested copy of partnership deed (in case of registered firm) duly signed by
all partners of the firm
 Stamp of partnership firm.
 Attested copy of Certificate of Registration of firm issued by Registrar of the
firm.
 If firm is unregistered clearly written UNREISTERED on AOF
 Letter showing the authority of one or more partners to act on

Joint Stock Company Account


Documentation:
For opening a joint stock company accounts following documents are required:
 Certified copy of Resolution of board of directors
 Certified copy of Memorandum of association
 Certified copy of Article of association
 Certified copy of Certificate of incorporation
 Form 29(B) (lasted copy)
 List of directors with address, signatures, and CNIC
 Authorized person to operate the account
 Undertaking that in case of any changes they will have to inform the bank and
the chairman signatures undertaking

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2. Saving Accounts
These types of accounts are for those persons who want to make small savings.
Saving accounts are of various types.
1. Individual account
2. Joint account
3. Either or survivor account
4. Resident or non-resident
5. With occupation
6. With application of zakat

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.

Cheque Book Issuance


When the account is opened, then, a cheque book is issued to the customer so that he
can withdraw his money whenever he wants during banking hours.

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

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of account, account number, type of currency, number of leaves and signatures of the
customer.

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

Terms and Conditions for Opening of an Account:

The following words and expressions shall, unless the context otherwise so requires,
have the following meanings:

a) Account means basic banking, savings or current (Pakistani Rupee or foreign


currency) account(s) maintained by the customer with the Bank.

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.

d) Business means business, transactions and products approved by the Shariah


Advisor, for the purpose of making investments from funds availBOPe in the
pool(s).

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e) Business Day means a day when the relevant branch of the Bank is open to
conduct banking business and any day not specified as non-business day for
banks by SBP.

f) Business Income means total income of a pool from Business (es) for a given
period.

g) Customer means any individual person, firm, company or any other


association or organization, maintaining an account with the Bank, and includes
(where appropriate) any person authorized by the customer to give instructions
on customer’s behalf in relation to customer’s account.

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.

j) Internet Banking Service means the service to be provided by the Bank,


which would enable the customer to obtain information from and give
instructions to the Bank by logging-on to the Bank’s Website.

k) Internet Banking ID means the unique identifier which is issued to the


customer by the Bank, and which would enable the customer to access the
Internet Banking Service.

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.

o) Mudarib means the party in a Mudaraba agreement that provides the


expertise and management for managing the funds of the person who provides
the funds.

p) Musharaka means a relationship established under a contract by the mutual


consent of the parties for sharing of profits and losses in the joint business. It is
an agreement under which the Bank provides funds which are mixed with the

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funds of the business enterprise and others. All providers of capital are entitled to
participate in management, but not necessarily required to do so. The profit is
distributed among the partners in pre-agreed ratios, while the loss is borne by
each partner strictly in proportion to respective capital contributions.

q) Password means an alphabetical and / or numeric code initially assigned to


the customer by the Bank and includes any other code as may be subsequently
adopted by the customer for accessing the Bank’s Internet Banking Service.

r) PIN means Personal Identification Number initially assigned by the Bank at


the time of issuance of ATM Card and includes such other code as may be
subsequently adopted by the customer for accessing the Bank’s ATM Services.

s) Profit Equalization Reserves (PER) means the amount appropriated by the


Bank, from net income of the pool on the basis of Tabarru, in order to maintain a
certain level of return in investment for investment account holders and increase
owners’ equity.

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.

u) Rab-ul-Mal meansthe party in a Mudaraba agreement that provides the funds


and accordingly shares the accrued profit with the Mudarib on a pre-agreed basis
and solely bears the loss (if any) faced by the Mudaraba.

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.

x) The Bank’s Website mean BOP’s website at www.bop.com.pk as modified


and / or re-designed from time to time.

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.

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The Bank will not refuse opening of account for prospective clients who meet the
requirements laid down in the Prudential Regulations, other instructions issued by
SBP from time to time and Bank's own policies.

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,

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the Bank is authorized in the absence of any specific instruction to the
contrary, to endorse the same on customer's behalf and deposit it to the
credit of such account; and

ii) To issue any cheques, drafts, notes or other instruments that may be
drawn against such account.

b) If prior to acting on instructions received from a signatory, where a joint


account is operated on the basis of either or survivor of the signatories, the Bank
receives contradictory instructions from any joint account holder(s), then the
Bank may, at its absolute discretion, choose to act on the instructions of all the
signatories, notwithstanding that any relevant existing mandate or instructions
require otherwise.

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

Applications for issuance of Cheque Books should be made on prescribed requisition


slips and thereafter for further issuance of Cheque Books on the requisition slip
inserted in the Cheque Book already issued.

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.

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Cheques or other negotiable instruments deposited by the customer that have been
dishonored may be returned by post or special messenger to the customer at his last
known mailing address with the Bank at the risk and expense of the customer
concerned, unless prior arrangement otherwise has been made for its collection.

6. Statement of Account

The statement of account will be dispatched to the account holder at periodical


intervals, as per frequency stipulated by SBP, and charges as per rules set by SBP.

The statement of accounts will be sent in following manner:

a) Where closing balance in an account, as on 30 June and 31 December, is less


than 10,000/- free of charge statement of account will be dispatched at least once
in a calendar year within one month from the close of calendar year (i.e., by 31st
January). Statement of accounts for balances less than 10,000/-, which is
dispatched through regular post, customers may notify any discrepancies in
statement of account within 45 days from the date of issue, after which Bank's
statement will be considered final.

Where closing balance in an account, as on 30 June or 31 December, is greater


than or equal to 10,000/-, free of charge statement of account will be dispatched
twice in a year on, six monthly bases, within one month from the close of half
year (i.e., June 30 and December 31).

However, no statement of account shall be dispatched to dormant / inoperative


accounts during the period of dormancy / in-operation till such time accounts are
reactivated. However, statements to all such accounts shall be dispatched on due
dates, starting from the period preceding or equal to the date account was flagged
dormant.

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.

Duplicate copies of statement of accounts shall be provided by the Bank by debiting


the customers’ account as per the schedule of charges.

7. Deposits

All monies / instruments to be deposited in an account should be accompanied by a


pay-in-slip showing the title and number of the account. The entry of transaction shall
be authenticated by putting Bank's stamp under the joint signatures of two officers of
the Bank on the pay-in-slip and counterfoil thereof. The depositor should satisfy
himself / herself that the transaction has been so verified on the counterfoil.

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All cheques to be deposited for credit to the account should be payable to the account
holder and be "crossed" before deposit. Also particulars of the cheques (name of the
Drawee Bank, Cheque number etc.) should be correctly written both on pay-in-slip
and the counterfoil thereof. The Bank shall not be responsible in case of any loss
where the above requirements are not complied. In case of delay or loss occasioned in
collection of cheques, the bank will follow-up with the concerned for swift resolution.

Remittance received through mail will be acknowledged by return post. An account


holder who does not receive such acknowledgement should communicate with the
Bank immediately.

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:

a) Either or any one or more of them or the survivors of them; or

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.

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In case of:

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.

10. Closing of Account

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.

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11. Death / Bankruptcy of Account Holder(s)

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.

12. Current Account

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.

13. Basic Banking Account (Current Account)

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.

No fee will be charged for maintaining BBA.

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.

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Statement of account will be issued once in a year, duplicate copies of the statements
of accounts will be provided on request upon payment of relevant 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.

The Customer will not participate in the management or in decisions concerning


investment of the Mudaraba funds and by signing this contract investor understands
that investor has given unrestricted right to Bank / Mudarib to invest these funds.

In addition to the above:

a) PLS Savings Accounts may also be opened by charitable institutions for


Provident Funds and other funds of benevolent nature by Local Bodies,
Autonomous Corporations, Companies, Associations, Societies, Educational
Institutions, Firms etc. and in all other cases where such accounts are required to
be opened under the orders of Competent Court of Law; and

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.

15. Distribution of Profit & Loss

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In case, where the Bank’s equity is comingled with the customer’s fund in a pool; the
Net Income / loss of pool would be allocated between the Bank’s equity and
customer’s fund in proportion to the respective share in pool.

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:

a) The Bank’s share in the Profit, in the capacity of Mudarib, would be


admissible only on profit allocated to depositors’ funds from the pool’s net
income and would be determined on the basis of a predetermined percentage,
capped at a maximum of 50% of the profit allocated to depositors’ funds from
the pool’s net income. The said percentage shall be determined by the Bank
before the beginning of each period and made available for the customer’s
information on the Bank’s Website and on notice boards in the Head Office and
branches. Loss, if any, shall be distributed amongst pool members under the
principles of Mudaraba on the basis of pool members’ ratio of investment.

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.

16. PER, IRR and other provisions

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.

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c) Only existing depositors will qualify for share in PER. As such, the depositor
agrees that he / she / it shall not have any right to claim the share in PER (if any)
after the withdrawal of the deposit.

d) PER will be created on the basis of Tabarru from pool contributors.

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.

IRR will be created on the basis of Tabarru from pool contributors.

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.

16.8. Clauses pertaining to calculation and distribution of Profit / Losses in this


document shall be in accordance with the prevailing laws of Pakistan and the
applicBOPe rules and regulations issued by the State Bank of Pakistan from time to
time that are not in contradiction with the rules and principles of Shariah and the
profit and loss distribution policy framework approved by the Shariah Advisor and the
Board of Directors of the Bank.

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17. Profit on Closing / Withdrawal of Deposits from Saving Account

 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.

18. Foreign Currency Accounts

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.

No profit is paid on any current account balance in respect of Foreign Currency


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.

19. Indemnity and Liability

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:

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a) Bank acting upon the customer’s written or verbal instructions to stop
payment, hold mail and / or to act on any other instructions, including standing
instructions issued by the customer to the Bank from time to time.

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:

i) revealed to be unauthentic, unauthorized or erroneous; and / or

ii) discovered to be fraudulent.

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.

e) Customer’s act, omission, error, neglect, or default or those of the customer’s


employees, agents, correspondent or participating bank or of their employees and
agents.

f) Subject to these Terms, any amendment to or variation in customer’s


instructions.

g) For any instruction not complied with, due to reasons beyond the Bank’s
reasonable control.

h) Any loss arising out of unauthorized or fraudulent access to the customer’s


account caused as a result of customer’s negligence or failure to take reasonable
care.

i) Loss or theft of cheque book or the ATM Card.

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.

20. ATM Services

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The Bank may, at its sole discretion, and subject to applicable charges issue ATM
Card to the customer to access the ATM Service.

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.

In case of a joint account with either-or-survivor(s) operating instructions, the ATM


Card shall be issued only in the name of one signatory to the account.

Miscellaneous

Zakat and Taxes

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 and Expenses

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

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The Bank reserves to itself the right to amend, alter or add to any or all of these
Rules through an advertisement in a newspaper or by means of a notice exhibited
in the Bank’s premises as thirty (30) days advance notice prior to such changes
take effect there after such amended, altered or additional Rules shall be deemed
to be binding on all concerned. However, in case of any dispute, matter should be
referred to SBP and the decision of SBP will be final and binding in that case.

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

Any change in the address of the account holder should immediately be


communicated to the Bank in writing so that any future correspondence may be
made to the new address. The post office and the agents for delivery should be
considered agents of the account.

Transfer of Account

An account may be transferred, on a written application by the account holder,


from one branch of the Bank to another on any working day, free of charge
without affecting the Profit / Loss position 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.

Data Protection and Disclosure

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

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A statement of account is issued to all customers of the BOP. Now a day these
statements are sent on the request of the customer. By this statement the customers
get the information of their account. Usually, the auditors of the big companies send
letter for statements of company or person account in order to know the detail of the
account. Then bank issues them the statements of account and takes charges for
issuing such 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.

Books Maintained by Cash Department:

Scroll Book:
When the cash is received at the counter it is recorded in the scroll book

Paying Cash Book:


Cashier makes entry in the paying cash book when cash is paid. The amount is paid
and cheque number is written on it.

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 Balance Book:


Consolidated figure of receipt and payment cash is entered in cash balance book.

 Functions Performed by Cash Department:


Cash department performs two main functions

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 Cash Deposits
 Cash Payments

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.

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DEPOSITS DEPARTMENT
Function of deposit department is to collect cash from the customers and to deposit it
into the accounts, maintained by them. Their classification is based on the duration
and purpose for which the account is maintained.

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.

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Profit & Loss Sharing Account:
This type of accounts is one step towards the Islamization of banking system in
Pakistan. There are two types of PLS Accounts.

 PLS Saving Account


 PLS-TDR (Profit & Loss Sharing Term Deposit Receipts)
PLS saving accounts can be opened with the minimum sum of Rs. 100 and PLS-TDR
account can be opened for a sum of Rs. 1000 or above. Profit is paid on both types of
the PLS account on half yearly basis.

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.

Term Deposits Account:


Fixed or time deposits are the major source of fund for commercial banks. The rate of
interest on fixed deposits is higher than that of saving deposits and it varies time by
time. The longer the period for which the amount is kept the higher the rate of interest
is. The holder of term deposit account cannot issue cheques for the withdrawal of the
amount.

The Bank of Punjab deals with two types of Term Deposit Accounts:

 Short Notice Term Deposits (SNTDs)


 Term Deposit Receipts (TDRs)

Short Notice Term Deposits (SNTD)


This kind of deposit is for a short period. The depositor may withdraw his
deposit at any time by giving seven days notice to the bank. This type of deposit
facilitates the depositor to withdrawn his amount with interest of the deposited period.

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Term Deposit Receipts (TDR)
This type of deposit is same as the SNTD. The difference is that SNTD is for
short period (7- 30 days) while TDR is for long period (1 month up to 5 years).

Foreign Currency Account:


These are the accounts in which deposits are accepted in foreign currency. These
deposits may be kept either in saving or in current foreign currency account.

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.

These are two types of clearing:

 Inward Clearing (Paying Bank)


 Outward Clearing (Presenting Bank, Collecting Bank)
 Within Bank Clearing

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

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account holder gives to such account holders who have their accounts in other banks
other than BOP. So those banks submit their cheque books to NIFT.

NIFT (National Institutional Facilitation Technologies (Pvt) Ltd):


Now a days a specialized institution named as NIFT performs services of clearing.
Each bank collects the cheque on behalf of their customers of other banks and hands
over this cheque to NIFT. When NIFT collects the cheque in the evening from every
bank, then at night all cheques are sorted according to their banks and then according
to their branches. Then cheques of one branch e.g. of BOP Gulshan-e-Ravi are kept in
one bag with the detail summary of cheques e.g.

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”.

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OUTWARD CLEARING
Outward clearing means the collection of cheques on behalf of customers. These
cheques are those, which are drawn on other banks. This clearing can be local or out
station. When customer brings such cheque, he fills the deposit slip. He keeps
counterfoil and the remaining part is stapled with the cheque.
The bank officer stamps the crossing stamp. He also stamps the clearing stamp of
next day and endorsement stamp. In this clearing the bank receives the cheque whole
day and enters those cheques in outward clearing register which has following
columns: date of next day, Serial #, Cheque #, Amount, Slip #, A/c # of Payee.

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.

Within Bank Clearing

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.

Functions of Clearing Department


 To accept transfer delivery and clearing cheques from customers of the bank
and to arrange for their collection.
 To arrange the payment of cheques drawn on the bank and given for collection
to any other branch of BOP or any other member or sub member of local
clearing house.
 To collect amount of cheques drawn on members, sub members of the local
clearing house, sent for collection by those BOP branches, which are not
represented at the local clearing house.

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Types of Cheques Collected By Clearing Department

Transfer Cheques:
The cheques which are collected and paid by the same branch of BOP.

Stamps on Transfer Cheques:

 Transfer stamp
 Computer posted
 Crossing/ Branch stamp
 Payee account credited
 Signature verified

Transfer Delivery Cheques:


The cheques which are collected and paid by two different branches of a bank situated
in the same city.

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.

Stamps on Clearing Cheques:

 Crossing/ Branch stamp


 Payee account credited
 Signature verified
 Clearing stamp of next working day

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.

The Bank of Punjab deals with the following type of remittances:-

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 Pay Order (P.O)
 Demand Draft (D.D)
 Mail Transfer (M.T)
 Telegraphic Transfer (T.T)

Pay Order (P.O):


Pay order is just like cash. It is an instrument, which is payable on demand and only
presentable within the city. Pay order is also called the banker’s cheque, drawn upon
the issuing branch itself. If someone wants to make payment to some other person he
can make payment through pay order slip.

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.

Procedure of Pay Order:

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

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control number to the instrument. Print out is taken on the block of payment order.
Two authorized officers of the branch then sign it. Instrument is then protectographed,
and given to the customer.

When instrument is presented for payment, it is posted in the system and canceled by
the remittances incharge after proper security.

Demand Draft (D.D):


Demand draft is an instrument given by one branch of a bank on behalf of customer to
another branch of the same bank to a certain amount to the certain person. It is made
by the bank, given to purchaser against cash or cheque. If a person wants to make
payment from one city to another then he can make payment through D.D. bank
charges commission for performing it according to the schedule rate, which is revised
after every 6 months.

Procedure of Demand Draft

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

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made to the purchaser only and it is called payment by cancellation. The drawer
branch is also informed about the same to make the entry in its book.

Parties involved in the Demand Draft

The following parties are involved in demand draft;

 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.

Mail Transfer (MT):


It is the transfer of money from one branch to another branch of the same bank
through mail service. In mail transfer there is no need of advice as the amount is
directly credited to the receiver’s account.

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.

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4. The cash officer gives the vouchers to the officer after affixing received cash
stamp and writing the amount in red ink.
5. Then the officer writes the amount paid in the cash scroll and gives the MT to
his assistant.
6. MT leaf is filled according to the information provided in credit voucher. He
also writes the same information in the MT register. Then he gives the MT leaf and
MT register to the officer for authentication.

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

Types of bills for collection


There are two types of bills for collection:

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 Outward Bill for Collection (OBC)
 Inward Bills for Collection (IBC)

Outward Bills for Collection


Cheques and other instruments drawn on other bank in other cities are known as
Outward Bills for Collection. Bills department receive cheque or other of bills from
its client whose account must be opened in that branch. The checking officer of bills
department will cross the cheque with special bank stamp before forwarding the
cheque. That branch receives payment from the other bank and credits our branch and
we credit our customer a/c.

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.

Inward Bills for Collection


Bank receives cheques, draft and other instruments for collection from branches of
other banks, which are not included in local clearing house arrangements. They are
Inward Bills for Collection. In it, instruments come and funds go out. Therefore it is
unfavorable. The branches which receive bill have to verify these bills for payment.
The party account must be opened in that branch. The responsibility of this branch is
to verify the bills for collection with in three days and send the advice to the
originating 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.

Receiving Foreign Payments


Customer can receive its amount from UAE, Xpress money, Aftab money exchange
and western union.

CNIC Is Must For Payment:

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 For payment original CNIC and copy of CNIC is required.
 On CNIC copy customer has to write: Pin code, Amount, and Contact number

If CNIC is expired no payment is given to customer.

Procedure For UAE Express Money:

Requirement:

 Copy of CNIC of customer and original CNIC.


 16 digit code.

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

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Account department is the backbone of a bank. It plays a vital in performing different
functions of a bank. Accounting books of different departments are maintained under
this department and with the help of these, accountant prepare the monthly quarterly,
semiannually and yearly financial statement and order statement of the whole bank.
All the transaction taking place is recorded daily in the books of accounts and in
computerized ledgers.

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

Functions of Clearing Department


Accounts department performs the following functions

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.

Income and Expense


The department also needs to calculate the revenues and expenses, control
expenditure and forecast profits every month.

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:

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 Collecting vouchers, cheques etc from all departments
 Sorting Vouchers
 Checking Activity
 Packing
Collecting Vouchers:
The first stage of activity checking is collecting all vouchers, cheques, DD’s, pay
order, pay slips etc from all departments of the bank. Mainly vouchers come from the
operations department. After collecting these vouchers etc from the departments, we
need to check if all stamps are stamped on these vouchers etc.
Sorting Vouchers:
After all vouchers are collected, they need to be sorted into eight categories:
1. Customer Debit: Includes debit vouchers and cheques
2. Customer Credit: Includes credit vouchers and credit slips
3. Income: Income vouchers
4. Expenditure: Expenses vouchers and payment vouchers
5. Others: Includes vouchers about excise duty, FED, teller, ATM,
payables etc
6. Online: Contain online vouchers and online credit slips etc
7. Head Office (H.O): Includes HO vouchers and DD advices
8. Bills Payable General (BPG): Includes vouchers and DD, Pay orders,
Pay slips etc
Checking Activity
After sorting takes place, daily activity is checked using the statement of account
activity, which contains all daily activity of the accounts in the bank. Activity
checking is done by seeing if the values and account numbers in the sorted vouchers
match that of the activity and whether or not there is any missing activity that is not in
the vouchers.
Packing
After the activity is checked, all sorted vouchers are counted, both debit and credit
and then packed by totaling the vouchers.

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 10 ) Work done during Internship Tenure

During my 6 weeks at the branch I have experienced different aspects of

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.

BOP Nowshera Virkan branch deals with:

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:

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1. Issuance of token
2. Posting of cheques in the computer
3. Posting of cash receipts vouchers in the computer
4. Authentication of cheques, receipts, and vouchers
5. Transfer of utility funds

REMITTANCE DEPARTMENT
For Second week, working in remittances department, under OGII Mr. Nasir
Hussain the duties assigned to me included:

1. Entry of remittance instruments in the system & preparation of physical


instruments
2. Entering the data into the system many times to understand the process of
making drafts and pay orders.
3. Making the entries (head office credit and party account debit) in daily book
and daily summary sheet and at the end balancing the sheet. The process is
rather a critical one because the balances of these sheets must tally with the
printed balances of computer each day.
4. Make credit and debit vouchers of charges recovered on remittances, as
advised to me by the officer.
5. I have made and processed some telegraphic transfers during my training
session.
6. Maintaining the balances of daily issued and paid Pay orders into the daily
working register.
7. I was also trained how to respond to telegraphic transfers which are received
by the bank from other branches. These are received through TCS at early
working hours. An action is required after receiving these transfers.

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.

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ACCOUNT OPPENING DEPARTMENT
I spend third week of my internship in accounts department with Mr. M. Rizwan
Rasheed and Mr.Usman . Accounts opening department includes opening and
closing of accounts, issuance of cheque books, record keeping, and issuance of ATM
cards.

Steps for Opening an Account:

 Introduction of customer

 NADRA Verification

 Filling out the account opening form which contains:

 Title of account

 Address

 CNIC number

 Next of kin’s CNIC number

 Signature and thumb print of the applicant

 Amount deposited (minimum 100/- required)

 K.Y.C. ( know You Customer) is an important section in which depositor’s


additional information is taken like type of customer, education, source of
funds, expected monthly income etc.

 And after all the bank internal inquires, the cheque book will be issued to
the customer within 10 days.

Duties and Responsibilities:

My duties and responsibilities in account opening department include:

1. Providing the customer with account opening form,


2. Filling in the form for customers who can’t fill in themselves and then use the
appropriate bank stamps to complete these forms.

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3. I also had to do a ‘Verisys’, a verification system started by NADRA on the
CNIC of the new account opener. A ‘Verisys’ tells, if more information pertaining
to the customer is needed to open the account or not.
4. Take print of NAB and OFAC to check the list either the person is black list or
not.
5. Guiding some customers about the requirements of opening an account
6. Entering the new record into account opening register
7. Stamping the account numbers on the manual cheque book
8. Entering the new cheque book serial numbers along with account numbers into
cheque book register
9. Filling in the application form requesting issuance of printed cheque books to
NIFT, at the end of day
10. Preparing and entering the letter of thanks into DAK dispatch register
 To Customer:
When a new customer has opened his account in the bank, the bank writes
a letter of thanks for account opening and posts it to the customer.
 To Introducer:
The bank writes a letter of thanks to introducer regarding his service for a
new account opening customer.
11. Receiving the authority letter from persons and obtaining their receiving on the
letter make entries in cheque book register and issue the cheque book to that
person.
12. I was to assist a customer towards the whole process of stopping payment. To fill
a form which is same as a cheque book requisition form and an indemnity form,
stating no responsibility on behalf of the bank if any illegal payment is made
before the time of announcing a cheque book lost.

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

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them to the clearing house. The clearing house in State Bank acts as a clearing agent
between the banks clears and verifies all kinds of cheques. All the banks have their
accounts with the SBP for clearing the balances. The main branch of the bank acts as
the clearing agent for the branches. Main branches of BOP at all the cities deal with
the NIFT. Each bank, after collection of all the cheques sent them to their respective
branches for clearance.

Unfortunately, my branch has no defined clearing department. Mr.Khushnood Sara


has to deal with clearing procedure and also received the mail (Dak) by courier for the
branch.

Duties and Responsibilities:

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.

2. I use to register the return cheques in a register


3. When cheque is presented in BOP Gulshan-e-Ravi to be deposited different
stamps are put on cheque before their lodgment in outward clearing.
Clearing held as following:
 Crossing the cheque
 Clearing stamp
 Endorsement stamp (payee’s account credited)

 NIFT
 Send report to the bank
 Delivered cheques to the respective bank

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As part of my internship, I was responsible to collect cheques from the customers that
they deposited, put the official stamps on the different kinds of cheques.

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.

UTILITY BILLS COLLECTION


Here, I worked under the guidance of Mr. Nasir Hussain for three days and
collected utility bills include the bills issued by the LESCO, WASA, PTCL, and
SNGPL and post them into the system and also prepare of billing scrolls. These bills
received by bank during working hours from general public. This branch is very busy
in this regard.

11 ) FINANCIAL ANALYSIS:

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Ratios:

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All the figures given below are in millions.
Earning Asset to Total Asset Ratio:

𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝐴𝑠𝑠𝑒𝑡/𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡=546855 / 991665


= 0.55
The earning asset of bank of Punjab are 546855 and total
asset are 991665 so its earning asset to total asset ratio is 0.55.

Return on Earning Asset Ratio:


=𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒/𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡=25503/991665
= 0.026
The net income of bank of Punjab is 25503 and its total
asset are 991665 so its return on earning ratio is 0.026.

Net margin to Earning Asset=

𝐼𝑛𝑣𝑒𝑠𝑡 𝑅𝑒𝑡𝑢𝑟𝑛 − 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐸𝑥𝑝 / 𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝐴𝑠𝑠𝑒𝑡 =(36149 – 35977)/54685


= 0.00031
The investment return of bank of Punjab is 36149 and its
interest expense are 35977 and its earning assets are 546855 so
its net margin to earning asset ratio is 0.00031.

Loan Loss Coverage Ratio:=

𝑃𝑟𝑒𝑡𝑎𝑥 𝐼𝑛𝑐𝑜𝑚𝑒 + 𝐿𝑜𝑎𝑛 𝐿𝑜𝑠𝑠𝑃𝑟𝑜𝑣𝑖𝑠𝑖𝑜𝑛 / 𝑁𝑒𝑡 𝐶ℎ𝑎𝑟𝑔𝑒 𝑜𝑓𝑓𝑠 =


(25503 + 19164 ) / 1649
= 27.08
The pretax income of bank of Punjab is 25503 and its loan
loss provision is 19164 and its net charge offs are 1649. Its loan
loss coverage ratio is 27.08.

Deposit Time Capital Ratio:=


𝑇𝑜𝑡𝑎𝑙 𝐷𝑒𝑝𝑜𝑠𝑖 / 𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟 𝐸𝑞𝑢𝑖𝑡𝑦 = 734596 / 11451
= 64.15
The total deposits of bank of Punjab are 734596 and its
equity is 64.14. Its Deposit Time Capital Ratio is 64.15.

Loan to Deposit Ratio:=


𝐿𝑜𝑎 / 𝐷𝑒𝑝𝑜𝑠𝑖𝑡 = 137960 / 734596
= 0.188
The Loan amount of bank of Punjab is 137960 and its
deposits are 734596 so its loan to deposit ratio is 0.188.

Price Earning Ratio:=


𝑀𝑎𝑟𝑘𝑒𝑡 𝑉𝑎𝑙𝑢𝑒 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟 / 𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝑝𝑒𝑟 𝑆ℎ𝑎𝑒𝑟 = 89.80 / 13.08
= 6.87
The market value of bank of Punjab share is 89.80, its

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earning per share is 13.08 including its capital gain. So its Price
Earning ratio is 6.87.

Dividend Yield Ratio:=


𝐴𝑛𝑛𝑢𝑎𝑙 𝐷𝑖𝑣𝑖𝑑𝑒𝑛 / 𝑃𝑟𝑖𝑐𝑒 𝑃𝑒𝑟 𝑆ℎ𝑎𝑟𝑒 = 7.12 / 89.80
= 0.0792
The Dividend per share of bank of Punjab is 7.12 and its
market price is 89.80 and its dividend yield ratio is 0.0792.

Dividend Payout Ratio:=


𝐷𝑖𝑣𝑖𝑑𝑒𝑛 / 𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 = 4360 / 25503
= 0.1709
The total dividend of bank of Punjab is 4360 and its net
income is 25503 and its dividend payout ratio is 0.1709.

Market to Book Value Ratio:=


𝑀𝑎𝑟𝑘𝑒𝑡 𝑉𝑎𝑙𝑢 / 𝐵𝑜𝑜𝑘 𝑉𝑎𝑙𝑢𝑒 = 89.66 / 85.80
= 1.044
The market value of bank of Punjab share is 89.66 and its
book value is 85.80 so its ratio is 1.044.

MARKETING STRATEGY

The target market of the branch is all the salaried


persons, labors house wives, retired people and all those type
of people who want to save cash for their future life. Whereas
the big business men and big investors, financers can deposit
and withdraw their cash.

• As internee I saw that how this branch creates public relation


with others to contribute and bring about positive changes in
the area. Sometime branch organize concerts and games for
special children's who cannot participate in any game it mean
organize special children concert and also invited their parents
to provide information about the bank so this is a way to create
public relation. A Musical evening was also arranged for
children's; most of those students never had an opportunity to

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participate in any such lively event. This musical event creates a
will to do something and this day makes an unforgettable day
they will remember for many months to cone.

• Sometime branch organize matches between different villages


and support finance and gifts and some time the branch
distribute pamphlets.

• At the time of independence branch organize a big hall and


invited different schools children and their parents the students
perform their performance and after the end of the day they
distributes gills and provide entertainment to the whole crowd
and describe little address about the performance of the bank
and there is mention about the benefits of the bank.
Sometime branch organize quiz competition among different
schools students all the faculty member and parents of the
children are also invited the look the children performance and
enjoy it and after the end prizes distribution ceremony and little
address with crowed about the branch and the spending time
with village so from this way branch done his publicity.

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12 ) SWOT analysis:

Is a short form for strengths, weakness, opportunities, and threats.

It is an analysis of internal strengths and weakness of an organization as well as


external opportunities and threats. SWOT analysis affects the organizational
performance. The overall evaluation of a company strengths, weakness,
opportunities and threats is called SWOT analysis. An organization's mission is
accomplished by best strategies in SWOT analysis by:

Taking advantage of organizations opportunities and strengths.

Reducing effect of threats.

By avoiding the weaknesses.

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.

The security system is very good in BOP.

Employees are given with good facilities.

Internal computer system in BOP is very reliable and easy to use. Every
information is computerized.

There is properly maintained data.

BOP is 51% owned by Punjab government. BOP has an asset base of Rs. 165
billion and total deposits of Rs. 138 billion.

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The management prepares a financial statement which shows the state of affairs,
cash flows, the result of operations of state of affairs, & equity changes.

BOP follows the timelines specified by SBP for implementation of


recommendations of Basel-II committee for risk management and management.

BOP is adopting measures to monitor and minimize risks that are related to
banking industry.

WEAKNESS:

There is lack of proper internal control in BOP which is pointed by the


auditor in his review.

BOP has number of products and services more than commercial banks
but any advertisement on electronic media is not given.

During my internship, I observed that employees have a lot of burden of


work. The work should be distributed equally between the employees on
the basis of their capabilities and their post

Selection of employees should be biased.

There is a lot of concern of SBP on the bank's control that is the weakness
of BOP.

Due to more influence of the government there is negative behavior of the


staff with the customer.

Staff is not too much motivated due to no proper rewards or less


remuneration.

There is no time management principle for customer care.

There is lack of proper internal control.

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:

There can be a great increase in deposits of BOP by commencement of new


schemes.

There should be emphasis on e-banking.

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BOP should adopt the diversification, innovation and mission driven approach
which are keys to success.

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%.

Information technology is the future of this dynamic world. So BOP should


emphasize on it. Like other foreign banks, bank can design universal account to
enhance online facilities.

BOP is satisfying customer needs. A number of products are introduced by BOP


especially in retail banking and customers are becoming more loyal to the bank.
And due to optimum prices and brand products, customers feel secure and
convenient.

THREATS:

Credit crisis have an adverse affect on BOP.

BOP is facing a strong competition by other banks as business is growing at very


high speed.

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

BOP MARKETING MIX:

Product:
Products involved are Finance, customers, & agriculture.

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Price:

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:

The following markets are served by the bank of Punjab.

Agriculture market:

Corporate customers.

Commercial customers that involves middle & low income group.

Household customers that involves low & middle income group.

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.

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 Some people in the bank are over burdened with work. For this the work
should be divided equally.
 ATM facility is only availBOPe in some branches.

 13 ) RECOMMENDATIONS FOR THE BANK OF PUNJAB

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.

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 Bank should revise its rewards and incentives systems. Proper incentives are
to be given to employees on their overtimes specifically on closing dates.
Personal achievements of staff members must be awarded.
 General look of the premises of internal/external should be clean and
presentable.
 Following should be displayed on notice board:
 Opening, closing cash timing.
 List of prize bonds.
 Parking should be providing.
 Staff must look smart, energetic, enthusiastic, and eager to serve.
 There should be an information desk to provide the information and to receive
the complaints of the customer in the bank. There is no complaint box
available in the branch and not any person appointed to hear the complaints.
 BOP should start its operation in credit card. These cards are very helpful for
the ordinary customer in general and the business people in particular. To
make it mores secure and to eliminate the misuse of it, the management is
required to keep proper security against the card.
RECOMMENDAION FOR A BETTER WORLD RETAIL 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.

 RECOMMENDATIONS FOR HCC

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Some recommendations for University of the Punjab Gujranwala Campusare:

 Educational tours should be conducted for better understanding of


course contents practically
 Hailey should introduce this degree in the market by conducting
seminars in different institutions and organizations so that people may
get aware of it
 Hailey should arrange some meeting with the industrialist, bankers and
other top authorities of different companies just to inform them that
their students have capabilities to work in this challenging environment
 The specialization must also be offered in more areas like IT

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.

Direct Customer Dealing:

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.

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Time Management:

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

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Much oral information was provided by Mr. Syed Zahid Hussain Branch Operation
Manager and Mr. Nasir, and Mr. Rizwan Rasheed.

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

BILLS FOR COLLECTION


A bill of exchange drawn by the exporter usually at a term, on an importer overseas
and brought by the exporter to this bank with a request to collect the proceeds.
CONTINGENCIES
A condition or situation existing at Balance Sheet date where the outcome will be
confirmed only by occurrence of one or more future events
EARNINGS PER SHARE
Profit after taxation divided by the weighted average number of ordinary share in
issue.
GUARANTEES

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An agreement involving a promise by a person (the guarantor) to fulfill the
obligations of another person owning debt if that person fails to perform
HISTORICAL COST CONVENTION
Recording transactions at the actual value received or paid.

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

Scanned Copy of Letter of Authorization

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17) ANNEXURE

Annexure-I

UNIVERSITY OF THE PUNJAB GUJRANWALA CAMPUS

1. Student Name: Fahad Nabi


2. Roll No:BC12106
3. DEPARTMENT: COMMERECE
4. Contact Number: 92-345-4485496
5. E-mail ID: fahadvirk22@yahoo.com
6. NAME OF COMPANY:
BANK OF PUNJAB NOWSHERA VIRKAN BRANCH
7. AREA OF LEARNING
HRM(admin)
ACCOUNTS
AUDIT(internal)
FINANCE(receipt/payment)
8. ADDRESS:

BOP TATLAY AALI ROAD NOWSHERA VIRKAN BRANCH DISST.


GUJRANWALA, (PUNJAB) PAKISTAN

9. DATE OF JOINIG:01-08-2015to15-09-2015
10. DURATION:6 WEEKS
:

LANDLINE#055 6762311-13, MOBILE#0300-7433028

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Annexure-II

CERTIFICATION

This is to certify that this report FAHAD NABI

Submitted in partial fulfillment for the award of DegreeB.COM (Hons) Department of

Commerce, Punjab University Gujranwala Campus was carried out by

MR.RIAZ AHMED CHEEMA Manager of BOP

under my guidance. This report has not been submitted to any other University or

Institution for the award of any degree/diploma/certificate.

Good Bye ! best of luck.

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“Passion Reborn” Page 99 of 99

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