Internship Report

ON

KHUSHHALI BANK LTD

Submitted To:

Mr.Rashid Saeed

Submitted By:

Zia Ul Rehman

Roll No:

BBAML-16-02 (M)

BZU Bahadur Campus Layyah

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 Preface

It is the requirement of the BZU,BAHADUR SUB CAMPUS LAYYAH MULTAN that all
students of BBA have to spend Six weeks in any organization to get practical exposure and to get
familiarized with the ways to live in the organizational environment which is dramatically
different from the educational environment. That six weeks period called “Internship Period “, if
spent properly and sincerely, enables the students to be more confident, more knowledgeable,
more responsible and, above all, more committed to its work in the practical field. I have also
been assigned to do internship of six weeks period in KHUSHHALI BANK LIMITED KAROR
BRANCH. It has enabled me to understand the practical scenario and sharpen our decision
making power and utilizing the resources in an effective manner, so that our resources generate
maximum profit. In preparing this report, I have put all of my best efforts and tried my level best
to give maximum knowledge. Despite of my all the coherent efforts, I do believe that there will
always be a room for improvement in the efforts of learner like me.

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 Acknowledgement

In the name of ALLAH, the most kind and merciful. First of all I am very thankful to almighty
Allah. I am also thankful to my parents who pray for my success.No one can say that I am
perfect everyone should admit that without the help of ALLAH and his people a man can’t get
anything so, I bow my head before almighty ALLAH with gratitude. I am also very much
thankful and presents salute too many individuals who have helped me in shaping this report .I
am also very much thankful to lot of My respected staff and especially I Am very thankful to the
respected teachers of this course and all the students of BBA Hons.

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 Executive summary

Department of business administration demands every student of BBA program to go a process

of 6 month internship program and to submit the report based on the observations and work done
during the training process. It is actually the review of any organization currently running its
business, having its competitors. The study of the functions of the human resources department
is the main purpose of this internship. It is also meant for finding the weaknesses and
shortcomings and then giving the suggestions for improvement. Moreover, the employees are not
trained according their specialized task performed by him/her .They are given general training so
while performing the specified task, it is difficult for him to be more accurate and it affects
his/her efficiency. In the era of specialization, the employee should be trained according to
specified task and the refreshing process should be conducted time to time.

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 Table of Content
Acknowledgement ........................................................................................................................................ 3
Introduction ................................................................................................................................................... 6
Vision ............................................................................................................................................................ 6
Mission.......................................................................................................................................................... 6
Values ........................................................................................................................................................... 6
Our Mandate ................................................................................................................................................. 6
Environment.................................................................................................................................................. 7
Product & Services ....................................................................................................................................... 8
Savings Account ....................................................................................................................................... 8
Term Deposits Account ............................................................................................................................ 8
Insurance policies...................................................................................................................................... 8
Health Insurance ....................................................................................................................................... 8
Life insurance............................................................................................................................................ 9
Departments .................................................................................................................................................. 9
SWOT Analysis .......................................................................................................................................... 13
Pest Analysis ............................................................................................................................................... 15
Political ............................................................................................................................................... 15
Social................................................................................................................................................... 15
Technological ...................................................................................................................................... 16
Financial Analysis ........................................................................................................................................ 16
Application of class room learning in organization .................................................................................... 17
Suggestion and Recommendations: ............................................................................................................ 18
Conclusion: ................................................................................................................................................. 19

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 Introduction
Founded in the year 2000, Khushhali Microfinance Bank Limited (formerly known as Khushhali bank
Limited) was a part of the Government of Islamic Republic of Pakistan's Poverty Reduction Strategy and
its Microfinance Sector Development Program (MSDP). MSDP was developed with the facilitation of
Asian Development Bank (ADB). With its headquarters based in Islamabad, Khushhali Microfinance
Bank (KMBL) operates under the supervision of the State Bank of Pakistan (SBP). The bank's board
comprises of nine members including leading commercial bankers, fund managers and microfinance
experts from across the globe. The mandate remains to retail microfinance services and to act as a catalyst
in stabilizing the country's newly formed microfinance sector.

Vision
To be a leading Micro Finance Bank providing financial services to Micro, Small and Medium
Enterprises and low income households across Pakistan.

Mission
To strive for excellence and to adopt sustainable practices for the best long term interest of all
Stakeholders.

Values
 Empowerment
 Excellence
 Ethical

Our Mandate
Being a commercial based microfinance institution, our purpose is to:
 Establish a sustainable platform of financial services to the poor accompanied with
retail delivery mechanisms
 Facilitate an environment where microfinance can prosper within Pakistan

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  Assist the central bank in setting up an appropriate and a responsive framework where
microfinance institutions operate on sustainable grounds, thereby expanding their
outreach to the poor
 Promote transparency, financial firmness and high quality governance as leading
indicators within country’s microfinance sector.

Environment
Khushhali Microfinance Bank operates under the Microfinance Sector Development Program
(MSDP) which was initiated by the Government of Pakistan through a Microfinance
Development Policy. MSDP has an important objective – to provide affordable financial and
social services to the poor, for a significant impact on poverty reduction through:
 Increased income of poor households
 Enhanced outreach particularly to women
 Build social capital
 Reduce risks faced by the poor

The MSDP provides an integrated package of policy reforms and most optimum means for
institutional development, with the objective of outreaching expansion to facilitate growth of the
microfinance sector.

Competitor:

 Muslum commercial bank

 Standard charted
 NRSP Bank
 ZTBL
 Soneri Bank Ltd
 The Bank of Punjab
 Bank AL-Habib
 ABL
 Faysal Bank Ltd
 National Bank

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 Product & Services
Credit Policies/ Types of Loan:

 Khushhali Sarmaya(Micro Enterprise Lending)

 Khushhali Qarza
 Khushhali Livestock Loan
 Khushhali School Loan
 Agriculture Loan
 Sarsabz Karobar Khushhali
 Khushhali Asan Qarza
 Shandar Bachat Sacheme
Types of Deposits Account

Current Account

a) Current Deposits Account

b) Assan Account

Savings Account
a) Mahfooz Account
b) Bahtreen Bachat Account
c) Karobari Munafa

Term Deposits Account

a) Khushhali Amdani Certificate
b) Khushhali Izafa Certifacte

Insurance policies

Health Insurance
a) Sehat Khushhali
b) Sehat Khushhali Plus
c) Sehat Khushhali Family

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 Life insurance
a)Khushhali Mutaqbal

Remittance &Other Products

 Remittance
 Other products
a) Call Deposits Receipts
b) Khushhali ATM Card
a) Blue Card
b) Gold Card

Departments
 Account Opening Department
 Cash Department
 Clearing Department
 Remittance Department
 Advances & Credit Department
 Foreign Exchange Department
Departments where I worked During my internship period

I work in as internee

 Account Opening Department

 Cash Department
 Clearing Department
 Remittance Department
 Advances & Credit Department
 Foreign Exchange Department

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 Work Experience
1st week:

In my first weeks worked in the account opening departments. It is important department of the bank
because all the working of the bank base on account and the bank account shows the deposit of the bank if
any person working with the bank or the organization then first step is the account opening and my work is
in the department is to open the new account for a valuable customer and I learned that there is few many
document which is use in the opening of new account. There are many Current account, Saving account,
(PLS) Profit and loss account, KBA(Khushali Bachat Account) these have different specification of the
customer which will gave benefit of him.

The document which is used in the opening a new account is as under

 Account opening form

 The name of person who request for opening the new account
 The type of the account
 Check the expiry date
 Filled the opening form
 Signature of the person
 SS Card (Specimen Signature Card)
 Mother name
 Father name
 Present address
 Permanent address
 KYC Foam (Know your Customer)
 CNIC Required for KIN
2nd week:

During my internship I spent my 2nd week in the cash department and cash department is totally deals with
the cash whether the cash comes in the bank or out

from the bank during the learning in the cash department I learn the all the activities which is perform in the
cash department .in the cash department there is various sub

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department according to the categories which are performing by the different persons in the department in
the cash department there are four to five counters in which include

 The issuance the token

 Receipt counter or the cash deposit counter
 Payment of cash and checks
 Verification and clearance the check and account counter
 Bill and fee receive counter
During my learning process I learned that first of all issue the token to the customer and then in the
receipt counter receive the cash and maintained the account and then if a customer have a check then the
cheque is verifies by the verification person and then the casher makes the payment against the cheque and
also transfer the money online and maintained the all activities which is casher duties i.e. give the cash to
the valuable customer and the bill and the fees receive counter receive the bill payment and the fees and
maintain all the activities related to bill and fees collection.

The activities of the cash department of KHUSHHALI BANK (Ltd) is as under

 Source of cash
 Management of cash
 Deposits
 Demand draft and the online maintains
 Treatment of surplus cash
 Treatment of the cash deficit
 Cash transit
 Issuance of cash
 Security arrangements
 Verification of cheque
 Receive the bill and the fees collection
This is the most important department of the bank I leaned while working in this department that
there is all about maintains of the cash in this department in the staff work very carefully make sure there is
no mistake and in the closing at evening both the sides of the cash account is balanced or equal then the
banks makes the profit.

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3rd week:

My 3th week during my internship in the credit department the credit department is the one of the most
important department of the bank. The credit department is works with maintain the loan and credit and also
issue the credit after necessary verification and the security and the guarantee to the desire limit and there is
the rule and the regulation to issue the credit and loan to the customers.

4th week

In this week I learned Credit department of KHUSHHALI BANK (Ltd) deals with different type of running
finance and the type of loan is as under

 Cash finance
 Demand finance
 Term finance
 Short term and loan term loan

If the individual wants to take the loan from the bank then there is the limits of the loan which provided
by the bank to any person or the organization. I leaned that for the purpose of loan giving by the bank there
is few many document and the guarantee required by the bank according to the loan type the requirements is
as under

1. Account number of the borrower and the account type

2. Nature of the business and the main products
3. Name of the borrower
4. Purpose of the loan whether it is for partnership or proprietor business
5. Type of the business
6. Details in case of firm and companies associated with the loan
7. And the current financial position of the business
8. And the accurate financial statement of the business last two years or more

5th week:

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My 5th week is all about the clearing department. I learned the work and the function which is performed in
the clearing department. This department the important department of the bank

I learn that clearing is the process in which bankers settle there mutual accounts by the claming the
arising account of various instruments presented by one bank drawn on the other banks in a same city or the
outside the city through NIFT (National Institutional Facilitation Technologies). NIFT is the department of
collection of clearing cheques of each branch, these plays middlemen of the bank and client.

There are two types of clearing going in the bank Inward clearing and the Outward clearing .we can say that
the clearing is clear those cheque which cannot be cash at the cash counter of the bank . the representative of
the respective bank collect all the cheque and the instrument which drawn on there and settle the account
and doing the clearing function this assembly of the representative of the bank is called Clearing house
NIFT perform the clearing on the behalf of the commercial banks in all the cities throughout the country.

6th week:

My last week is about working in the remittances department. It is very important department in the current
scenario in this department the bank deals with transfer money and different type of fund and also receive
fund from abroad form the Pakistani community and others as well which is called remittances

The KHUSHHALI bank transfer different type of fund through the different services in which the some is
mentioned below.

I learnt that the money transfer and remittances have following features

1. Quick and hassle free transfer

2. There is little charges of transfer
3. And same day devilry to KHUSHHALI BANK account holder

SWOT Analysis
The SWOT analysis of Khushhali Bank is presented below..

Strengths:
 Fastest growing Microfinance Institution
 Major Partners
 Extended Network

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  Rural development
 Credit facilities- collatral
 Agricultural development
 Women Empowerment
 Increase Entrepreneurial Skills
 domestic marke
 high profitability and revenue
Weaknesses:
 small business units
 natural disasters
 Inefficient to Reduce Poverty
 Transitory poor are neglected
 Inefficient Sustainability
 providers must provide services efficiently over time
 drive for a “supply-push” of loans caused a focus on gaining new customers
 Inefficient to Reach Women
Opportunities:
 Global markets
 Growth rates and Profitability
 Growing economy
 Income level is at a constant increase

Threats:

 Increasing costs
 External business analysis

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 Pest Analysis
Political
The current situation of the government in Pakistan is directly affecting the policies of banks.
However, KHUSHHALI BANK LIMITED tries hard to keep its business away from the politics
but it is not an easy task. KBL has no accounts of political leaders or parties. However, its
Customer Service Department faces peer pressure from such political parties.

As KBL is trapped in dual sanctions from the State Bank of Pakistan (SBP) and from the
European Union so the changing political environment is not so beneficial for the bank to
operate freely. The changing policies of the government, affects SBP which in return affects the
KBL rules and policies.

The government of Pakistan has privatized most of the banks. The number of government owned
banks have declined constantly, so these changes directly affect KBL.

Economical

The economy of any country has deep impact on any financial organization. Economic indicators
include Gross Domestic Product (GDP), inflation, balance of payment, debt of the government.
These below graphs will explain how economic conditions of Pakistan are adversely affecting
the banking system of Pakistan.

The pitiable economy of Pakistan and instable government is adversely affecting KBL and its
different departments; recently KBL has redundant many of its employees. The economy of our
Pakistan is very poor. Due to poor economy businesses are showing low profits and Pakistan
stock market is in great danger. Pakistan’s foreign debts are rising day by day, so such a situation
is a huge challenge for KBL to survive. Due to financial crisis in Pakistan the management of
KBL has to face stressful situations and also working environment. At present the KBL is not
extending loans but recovering the existing ones.

Social
KBL has been influenced by the socio-cultural factors. At present most of the European

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countries are keeping their eyes on Pakistan as being the terrorist country, so people of Pakistan
are emotionally getting affected by it. Most of the foreign investments have been stopped in
Pakistan. Pakistani people are traditionalists who do not like the modern banking environment of
KBL. Some of the customers do not use ATMs they still prefer cash counters, so these kinds of
socio-cultural factors affect the banking environment and its operations.

Technological
Technology has a deep influence on different kinds of organizations whether banks or any kind
social welfare organizations. In KBL technology has great effect on the working environment.
Mostly all banks use computers none of the banks keep data manually so the bank has to be
continuously in touch with the modern ways of task performance. MBL is always ahead to
introduce new computer systems for keeping its staff up to date. The intranet facility is playing
an important role in enhancing the knowledge of staff. Due to technology that bank staff keeps in
touch with the customers through e – mail; ATMs and online banking is only possible due to
technology. In this way technology is playing its key role in and is helping management to
further improve its functions.

Financial Analysis
Financial Statement DECEMBER.31 2018

Particulars Amount

Total Assets 70,471,952

Total liabilities 62,272,502

Net Assets 8,199,450

Net Profits 5,850,091

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Application of class room learning in organization
 Class room learning is always important for the student. First of all the discipline which
we learned in the class is very essential I feel no difficulty about discipline in the
organization.
 We study many subject in the class room about accounting, behavior and ethics these all
subject are perfectly applicable in the organization.
 In class room we build team work and coordination with each other team work has keen
importance in the organization.
 In class room teacher play a vital role and supervise the students and in the organization
boss plays this role.
 In class room teacher play a vital role and supervise the students and in the organization
boss plays this role.
 In class room main focus is on behavior and attitude of the students this give me great
assistance in the organization.
 We take confidence in the class by performing different activities like presentation and
demo this is greatly applicable in the organization.
 As an internee in khushhali bank i learnt that how practicle work is done in organization.
I also learnt,
 How company make SWOT ANALYSIS of organization
 Ethical values in the organization
 Studying money and banking was also a success for me while working in the
organization because the concepts of mortgage, pledge, letter of credit, letter of
guarantee, banks as a mode of financing etc were already been studied in the course. So
when I was questioned about what is debt financing, what is the difference between
pledge and mortgage, what is basically finance and what is the difference between fund
based and non fund based facility? I quickly responded to the questions and for that I
receive appreciation and our institute was also appreciated.
 The concept of debt financing which I have studied in finance, the concepts of mortgage,
pledge and lease which I studied money and banking, the concepts of payables and
receipts which I have studied in accounting and in the reporting.

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 If I was manager in organization:

 If I was manager out there I will just try to follow the rules and regulations.
 Be a Problem Solver
 Take on (Small) Management Opportunities
 Understand the Whole Company—Not Just our Role
 Be Professional
 Our vision is to be the leading financial services provider, partnering with our customer
for a more prosperous and secure future.

Suggestion and Recommendations:

 To reduce the poverty, it is necessary that disbursement should be focused to the point

 credit processes should have kept simple

 group members can reduce or increase according to population of working areas

 overcome the social and cultural gender biases against female participation

 increase focus on deposit mobilization to sustain their operations in future

 Establish incentives for retail providers to diversify funding sources

 Encourage innovation, new specialized actors, new approaches, and diverse financial
services

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 Conclusion:

 Microfinance is relatively less developed sector and a large scope is available to increase
the financial services

 GOP established KB as part of the Government of the Islamic Republic of Pakistan's

Poverty Reduction Strategy with assistance of ADB

 KB’s micro credit program has positive impacts on both economic and social indicators
of welfare, as well as income-generating activities

 KB's lending is predominantly geared to agricultural households with limited micro

enterprise activities

 The existing strategy of portfolio consolidation will continue and growth of clients will
stabilize to 18-20% over next five years with an outreach to 800,000 clients

 Growth retention is still a challenge

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 Reference

www.google.com

Annual Reports

www. Khushhali bank.com

visit khushhali bank

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