INTERNSHIP REPORT Up

Virt ual University of Pakist an
Evaluat ion Sheet for Internship Report
SPRING 2022
FINI620: Internship Report (Finance) Credit Hours: 3
Evaluation Criteria Result

Name of Student: Nimra Eijaz
Report writing PASS
Presentation & Viva voce
Student’s ID: BC180407258
Final Result
INTERNSHIP REPORT ACCEPTED Formatted: Justified
EXCELLENT WORK!!....
Congratulations you have successfully PASSED the written stage of your

Internship report.
Carefully read Lesson No.6 and prepare your presentation slides

accordingly. Template of PPTs is available in downloads link for your
guidance about how to prepare the presentation slides. Very soon an
assignment will be opened for PPTs submission. Regularly check
course announcement and assignment page for this.
Prepare well for your presentation & viva voce session just like you
prepared your internship report.
Keep checking your VU Gmail account. You will be informed about

presentation and viva voce call by email.
For any relevant query and information, you can contact via MDB, or
Email ([email protected]) and telephone 0423-6373047 – 49,
6373032-4 (Extension: 8857) in this regard.
INTERNSHIP REPORT | THE BANK OF PUNJAB
INTERNSHIP REPORT
THE BANK OF PUNJAB
A REPORT SUBMITTED TO THE DEPARTMENT OF MANAGEMENT SCIENCES,

VIRTUAL UNIVERSITY OF PAKISTAN IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE DEGREE OF BACHELORS IN BUSINESS
ADMINISTRATION
SUBMITTED BY:
Student Name: Waseem Ahmed

Student ID: BC180408348
Session: 2018 – 2022
Submission Date: 26 Aug, 2022
Department of Management Sciences,
Virtual University of Pakistan

i
ii
Acknowledgement
I thanks to Almight Allah who gave me strenght to complete this task. I am thankful to my
teachers who provide us a friendly atmosphere and guidelines during our four year
remarkable experience.
It was such a pleasant Experience to work in The Bank of Punjab I express my special
thanks of gratitude to all those who helped me in preparing this internship report by
sharing there best of knowledge.
It is due to endless efforts of my family and friends and especially employees of BOP who
provided me every favor and have always been a source of inspection for me.
iii
EXECUTIVE SUMMARY:
I have completed my internship at The Bank of Punjab Adyala Road Rawalpindi. There are four
departments in the branch, I worked as an assistant in that branch.
First Three weeks I worked in Account Opening department under the supervision of Mr. Faisal Fiaz, where
I learn following tasks:
➢ Account opening requirements
➢ Types of accounts
➢ How to open account
➢ Fill up the KYC (Know Your Customers)
After that I was assigned to checking of vouchers to confirm the correct posting of instruments has been
done. I check the following details:
➢ Cheque shouldn’t be post or anti dated.
➢ Tallies the amount in words and figures
➢ Signature and stamp verification
Then they transfer me to the discrepancies department where I was assigned to gather missing information
from the customer or check the existing data to resolve discrepancies.
➢ Read the discrepancies
➢ Call the customer for missing information
➢ Check the mistakes from our end
➢ Resolve the discrepancies
➢ Submit to the department
iv
Table of Content
Sr # Topic Page #
01 Overview of The Banking Sectors 01
02 Overview (The Bank of Punjab) 03

2.1 Brief History 04
2.2 Organizational Hierarchy Chart 05
2.3 Organizational Structure and Departments 07
2.4 Brief Introduction of Departments 08
2.5 Business Volume 10
2.6 Competitors 11
2.7 Product Line 12
2.8 Comments on the Organizational Structure 16
03 Internship Program 18
04 Training Program 19
05 Learning Experience 23
06 Ratio Analysis 24
07 Future Prospects of the Organization 39
08 Conclusion 40
09 Recommendations for Improvement 41
10 Reference & Sources 42
11 Annex 42
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Overview of Banking Sector

History:
In 2000 BC Assyria, India and Sumeria began with the first prototype banks. The merchants of the
world gave loans to the farmers and trader who supplied goods. Later, in ancient Greece and The
Roman Empire, the landers gave loans, accept deposits and perform the change of money in their
palaces and temples.
Modern Banking System:
In 1944 after World War II, International Monetary Fund (IMF) and the World Bank established.
Both are financial institutions that provides loans and grants to the governments of low- and
middle-income countries for the purpose of pursuing capital projects.
The World Bank Group is an extended family of five international organization, the collective
name given to the first two listed organizations, the IBRD and the IDA:
➢ International Bank for Reconstruction and Development (IBRD)
➢ International Development Association (IDA)
➢ International Finance Corporation (IFC)
➢ Multilateral Investment Guarantee Agency (MIGA)
➢ International Certre for Settlement of Investment Disputes (ICSID)
Banking in Pakistan:
Banking in Pakistan began in 1947 after the freedom from British Raj. Pakistan as a nation in the
globe, the extent of banking in Pakistan has been expanding and extending constantly. Pakistan’s
most established bank is the State Bank of Pakistan, which is additionally the national bank of the
country. Prior to autonomy on August 4th 1947 the Reserve Bank of India was the national bank
of this continent.
After freedom M. Ali Jinnah (The founder of Pakistan) took activities to build up a national bank
in Pakistan which brought about the new establishing of the State Bank of Pakistan, with its central
command to be situated in Karachi.
On July 1st 1948 Father of Pakistan and our great leader Muhammad Ali Jinnah inaugurate The
State Bank of Pakistan. At that time Australasia Bank and Habib Bank were providing facilities to
the nation of Pakistan. Later, Australasia Bank was converted into Allied Bank Limited.
There are fifty-four banks currently working in Pakistan with thousands of branches. Pakistan’s
banking sector consisting of Islamic Banks, Private Banks, Public Banks and Micro Finance
Banks. These banks provide banking facilities to their customers and clients by offering different
services and packages.
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Banking sector is considered as a spinal cord of our economy. Our Agriculture, Industrial, Mining
and Export, all business sectors are dependent on the Banking Industry because banks provide
short term and long-term funds to the other business to meet their goals.
Page|3
Overview (The Bank of Punjab):

The Bank of Punjab was launched by Tajammal Hussain and inaugurated by Mr. Nawaz Sharif on
November 15th, 1989 BOP first branch was located on 7 Egerton Road, Lahore. The Bank of
Punjab is working as a scheduled bank with 662 branches in all major cities of Pakistan.
BOP offers all types of banking services such as:
➢ Deposit in Local Currency
➢ Deposit in Foreign Currency
➢ Remittances
➢ Corporate Financing
➢ Provide funds to industries and agriculture
In national economy of Pakistan, The Bank of Punjab played extraordinary role by promoting
savings and providing funds for investments.
The Bank of Punjab is one of the fastest growing banks, and has the privilege to discharge its
responsibilities towards national prosperity and progress. In couple of years BOP schedule the
bank has not only carved out for itself prominent niche in the mainstream banking of the country
but in certain areas it has the distinction of taking the lead. In very short span of time the bank has
been able to evolve a distinct corporate culture through of its owned-based policies, which are
realistic and are on highly professional footings.
Branches
Conventional Branches 548

Islamic Branches 114
ATM 614
Total count of branches are 662 and 614 ATMs are currently working in Pakistan.
Page|4
Brief History
The Bank of Punjab was established under the provisions of section 28 of Federal list included in
the 4th schedule of the Constitution of the Islamic Republic of Pakistan 1973. The Bill was passed
by the Provincial Assembly on July 3rd, 1989
The Bank of Punjab was launched by Tajammal Hussain in October 1989 and given the status of
a retail bank in 1994. It functions as a commercial bank, with a network over 662 branches in
major business centers throughout the country.
Mr. Nawaz Sharif inaugurate the first branch of The Bank of Punjab on 7-Egerton Road, Lahore
on November 15th, 1989, Mr. Nawaz Sharif was the Chief Minister of Punjab. Over the long period
of gap in saving and investment and balance trade deficit has posed serious threat to the target
levels of growth. The ailments related to the budgetary deficit and public debt, both foreign and
domestic are in addition.
Interestingly even such adverse circumstances growth of real sector during the preceding year
registered a favorable change, which speaks of hidden potential and strength economy.
It is seventh largest bank in Pakistan and it provides a wide range of banking services, client deposit
in foreign and local currency, remittances, and advances to business, trade, industry and
agriculture.
First Punjab Modaraba (FPM), a wholly owned subsidiary of the bank was established in 1992. It
is managed by Punjab Modaraba Services (Pvt) Ltd. The current CEO of The Bank of Punjab is
Zafar Masud, he joined as president and CEO on April 16th 2020.
Awards and Rewards:

1. Excellence Award by the Central Board of Revenue
2. 3rd Kissan Time Awards
3. Best Corporate Report Award
4. 16th Bolan Excellence Award
5. Achievement Award
BOP receives Top Performing Bank Award for the highest disbursement under Kamyab Jawan
Program aimed at socio-economic empowerment and gender mainstreaming of the youth.
Total Amount Disbursed Rs. 6 billion

Disbursement to Small Farmers More than Rs. 2 billion
Total Beneficiaries 5000 Households
Jobs Created for 15000 Youth
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Organizational Hierarchy chart

P a g e |6
The Bank of Punjab

Branch Structure
Branch Manager
Operations Manager Sales Manager
RM
CRO RO CM CO
RO
P a g e |7
Organizational structure and Departments

The Government of Punjab holding 57.47 percent shares of The Bank of Punjab. The Chairman
of the Board is nominated by the Government of Punjab. The Chairman is a person who preside
over meetings of Board of Directors and shall have a casting vote, but he shall not exercise any
executive authority or power.
Board of Directors
1. Mr. Zafar Masud President & CEO
2. Mr. Mohammad Jahanzeb Khan Director
3. Dr. Muhammad Amjad Saqib Director
4. Syed Ghazanfar Abbas Jilani Director
5. Mr. Mohammad Mudassir Amray Director
6. Mr. Asif Reza Sana Director
7. Ms. Nadia Rehman Director
8. Mr. Muhammad Naeem Khan Director
Top Management
1. Mr. Zafar Masud President and CEO
2. Mr. Farid Ahmed Khan Group Chief Corporate and Investment Banking
3. Mr. Zahid Mustafa Group Chief Consumer and Digital Banking
4. Mr. Nadeem Amir Chief Financial officer
5. Mr. Ijaz Ur Rehman Qureshi Group Head Operations
6. Mr. Asif Riaz Group Head Retail and Priority Sector Lending
7. Mr. Khawar Shahid Ansari Group Head Treasury and FI
8. Mr. Faisal Ejaz Khan Chief Information officer
9. Mr. Arslan Muhammad Iqbal Chief Risk officer - Additional Charge as Group Head
SAMD
10. Ms. Alia Zafar Group Head People and Organizational Excellence
11. Mr. Nofel Daud Chief of Staff and Strategy
12. Mr. Umer Iqbal Sheikh Group Head Islamic Banking
13. Mr. Waqas Mahmood Chief Compliance officer
14. Mr. Hamza Khalid Randhawa Chief Legal officer
15. Mr. Asadullah Khan Chief Internal Auditor
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Brief Introduction of all the departments
Human Resource Department

This division handles issues pertaining to employee administration. This department's primary
responsibility is to put together a comprehensive training program for hired employees. Other
function includes:
• Recruitment
• Staff remuneration
• Placing the staff
• Providing and defining the opportunities for career development and growth
• Devising and implementing services rules.
• Promotion and demotion
• Suspension and termination
• Transportation
• Operations Divisions
The operational aspects of general banking, which deal with the regular operations of the bank,
are the focus of this division. This division resolves any issue or ambiguity that may develop in
any branch's operation and makes rectification suggestions. This Division typically participates
in technical decision-making processes like commissions. As well,
• maintaining the current structure that belongs to the bank.
• establishing new branches and maintaining them.
• It also addresses the bank's stationery issues.
Marketing Development:
It is the marketing division's alternate name. It advances the goals of the bank, namely deposits,
and contributes to the bank's overall growth. It encourages branches to meet their goals through
various campaigns and programs, such as cash rewards and special raises. It releases a message in
which it congratulates branches for meeting their monthly goals. The main function is to develop
and attract the customers and depositors. It also manages:
• Advertising policy
• Sales promotion.
• Schemes offered by the bank.
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Operations Department
This division control over all credit operations like sanction of loans, Inland Bill Purchased (IBP)
and also keeps check over securities mortgage, hypothecating or pledge. It also fixes the rate of
mark-up and other decisions concerning with the credit.
There is a credit committee, which consists of senior officers; Branches send the credit proposal
to head office credit division. Credit committee approves it after making a thorough analysis. It
also
• Prepare the policies regarding the sanctioning loan
• Monitor loans and credit
• Look after the portfolio of the bank
• Define credit limits against specified securities.
Finance Department
It has influence over every day financial operations. the approval of specific branch-related
expenses and other similar situations. All the branches provide the daily position and HO Extracts
to this division every day. This department also creates the overall income statement and balance
sheet for the whole bank, in addition to estimating the profit and loss for each branch. Additionally,
it maintains track of the bank's total deposits and divides them up into loans for various economic
sectors. The basic functions are:
• Monitoring the fiscal and financial policies of the bank.
• Deals in exploring means for investing surplus bank funds.
• Maintenance and investment of Gratuity.
Compliance and Audit Department

Compliance & Audit department deals with evaluating operational procedures, risk management,
control function and governance processes to ensure that the bank operate with integrity and adhere
to applicable laws, regulations and internal policies.
They focus to collect all the details of customer to ensure that what customer said is correct or not
if the details are invalid, they recommend to collect true details or close the account.
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Business volume
In the past five years, 209 new Branches have been opened around the nation in an effort to
improve the Branch Network and business volumes. Additionally, Bank's product lines have been
updated to better meet client demands while enhancing the effectiveness and quality of services.
As a result, the Deposits reached Rs. 1 trillion by the end of 2021 and were worth Rs. 1,003 billion
as opposed to Rs. 453 billion at the end of 2016, representing a CAGR of 17%. Through its digital
banking products and services, the Bank offers its devoted customers banking services around-the-
clock.
The branch network would be expanded to unbanked regions in accordance with the bank's
strategic business plan to ensure an increase in business volume and spread. The Bank will
concentrate on using new technology to enhance operational supervision and efficient monitoring
even further.
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Competitors
The Bank of Punjab is the seventh largest bank of Pakistan their competitors are as follow
1. Habib Bank Limited
Habib Bank limited is one of the fast-growing in local Banks of Pakistan with 1,685
Branches, 2,180 ATMs, 66,800 Konnect Agents, 39,272 POS, and 55,287 QR Codes.
2. National Bank Limited

The National Bank of Pakistan has established a vast branch network, with 1450 locations
operating within Pakistan and in important international economic hubs. Representative
offices for the Bank are located in Beijing, Tashkent, Chicago, and Toronto.
With more than 3000 correspondent banks around the world, it has agency agreements.
3. Bank Al Falah
With more than 779 branches spread throughout more than 200 cities in Pakistan and 12
branches abroad in Bangladesh, Afghanistan, Bahrain, and the United Arab Emirates, it is
one of the biggest private banks in the country.
4. Muslim Commercial Bank

The Bank runs a strong and extensive network in Pakistan that includes more than 1,400
branches, 1,450 ATMs, and a global presence in the United Arab Emirates, Bahrain, and
Sri Lanka.
5. United Bank Limited

The Bank offers Pakistan's largest network of over 40,000 client touchpoints, including more than
1,400 branches, more than 37,000 Omni Agents, and more than 1,400 ATMs, and has a customer
base of more than 4 million. UBL is present on four different continents.
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Product lines
The Bank of Punjab are offering two types of banking and they’ve a wide range of products.
The Bank of Punjab offers:
➢ Commercial Banking
➢ Islamic Banking
Commercial Banking
Retail Banking
Current Accounts Saving Accounts Term Deposit
BOP Tijarat Account PLS Saving Bank Account BOP Bonus Munafa Term Deposit
BOP Life Current Account BOP Behtareen Munafa PLS Term Deposit
Account
BOP Salary Plus Account Corporate Premium Account Foreign Currency Term Deposit
BOP Youth Education Account BOP FCY Supreme Saving
Account
BOP FCY Supreme Current BOP Young Lions Saving
Account Account
BOP Current Account BOP PLS Direct Pension
Credit Account
BOP Current Direct Pension BOP Asaan Saving Account
Credit Account
BOP Basic Banking Account BOP PLS LG Account
BOP Asaan Current Account Kissan Dost Saving Account
BOP Asaan Remittance Current BOP FCY Saving Account
Account
BOP Kissan Dost Current
Account
BOP GID Business Current
Account
BOP FCY Current Account
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Agriculture
Kissan Dost Production Loan BOP Tractor Lease
Kissan Dost Lease Finance Facility Kissan Dost Cold Storage Finance Facility
Kissan Dost Livestock Development BOP Agri Vehicle Leasing
Scheme
Financing Facility for Storage of
Agriculture Produce (FFSAP)
Retail Finance
Car Lease - CarGar Apna Ghar Low-Cost Housing Finance
Apna Ghar House Financing BOP Solar
Advance Salary Personal Loan BOP Smart Advance Cash
Carvaan Fleet Financing Apna Rozgar Scheme
Women on Wheels (WOW)
Corporate Banking
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 Import Financing
Financing
Bills Discounting Letter of Guarantees
Cash Management Services and etc. Housing & Construction Finance
Advisory Services Hospital Finance

Employee Banking
P a g e | 14
Small and Medium Enterprises (SMEs)
Product & Services Offered BOP Apni Dokan

BOP Fori Sahulat BOP Kamyab Karobar
BOP Shamsi Tawanai BOP Sonay pe Sohaga
BOP Supply Chain Finance SBP Refinance Schemes
Export Finance Scheme Financing Facility for Storage of Agricultural
Produce
Long-term Financing Facility for Plant & Mark-up & Guarantee Facility for Rice
Machinery Husking Mills in Sindh
Refinance Scheme for Modernization of Refinance Scheme for Special Persons
SMEs
Refinance Scheme for Women Entrepreneurs Refinance Scheme for Working Capital
Financing of SEs & low-end MEs
BOP Khaas Banking
BOP Khaas Current Account BOP Khaas Saving Account
Government Initiatives Department

Punjab Rozgar Scheme
P a g e | 15
Islamic Banking
Liability Products
Basic Banking Accounts Current Accounts
Profit and Loss Sharing Accounts Taqwa Rahat Corporate Account
Taqwa Rahat Account Riba Free Certificates (Term Deposits)
Taqwa Asaan Current Account Taqwa Asaan Saving Account
Taqwa Business Account Taqwa Meherbaan Certificate
Taqwa Direct Pension Credit Account Taqwa Asaan Remittance Account
Taqwa Committee Account Taqwa Kissan Dost Saving Account
Sadqa Jaari’ah Certificates - SJCs
Asset Side Products

Murabahah Financing Diminishing Musharakah Financing
Kafalah (Bank Guarantees) Ijarah
Istisna Running Musharakah
Taqwa Tijarah Finance TAQWA SALAM FINANCE
Other Products
Credit Cards: The Bank of Punjab completes the testing of Credit Cards by giving it to their
employees. The Bank of Punjab launch Credit Cards in May 2022.
Remittance: Remittance is a key function of the bank that deals with the transfer of money from
one location to another. In both daily life and the business world specifically, there is a
fundamental requirement for remittance. By offering its clients this service, The Bank of Punjab
generates a great amount of income by providing this service to the customers.
Stamp Papers: BOP is assisting the Board of Revenue e-Stamping Project with the automation
of e-stamp papers, the introduction of low denomination white paper e-stamping, and the
collecting of its revenues on the government's behalf. The Baluchistan e-stamping project
contract has also been acquired by the Bank.
P a g e | 16
Comments on the organizational structure

By looking through the Strength Weakness Opportunity and Threat (SWOT) Analysis I found:
P a g e | 18
Comments on the organizational structure (You would have to comment or give your opinion on
the structure of the organization as a whole that whether the adopted structure and practices
fulfill the requirements of the organization or not.
• Whether there is Centralization or Decentralization?
• The structure is TALL or FLAT?
Internship Program
I finished my six-week internship at The Bank of Punjab. started on July 6th, 2022, where I gained
experience working in several departments and doing a variety of jobs. Because interns are not permitted
to use computers, I was given the task of doing paperwork.
For the first three weeks of the six-week period, I worked in Account Opening department where I learned
the following tasks from Mr. Faisal Fiaz:
First, I learn Account Opening techniques and the type of Accounts. I was assigned to the duty was to fill
up the form e.g., KYC, Annexure A, Annexure F etc.
I then received a task to examine vouchers to ensure that the instruments had been sent correctly. I check
the following details:
In this task I perform inspection to confirm that the information provided on the cheque is correct. I
Thoroughly check the date, name, amount in numbers as well as in alphabets and the signature and stamp.
After inspection the cheque move forward to the authorized person for further process.
Then they transfer me to the discrepancies department where I was assigned to gather missing information
from the customer or check the existing data to resolve discrepancies. I read the requirements mentioned
on the white page. If the information, signature, stamp, date etc. is missing from the branch side, I complete
the details and forward the compiled file to the officer for further processing. And, if the information,
signature, CNIC, address etc. is missing from the account holder side, I call them to visit the branch along
with the required documents.
In these six weeks I experience a quality time working with The Bank of Punjab.
My internship ends on 17th August 2022.
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Training Program
The Bank of Punjab is the fast-growing organization in Pakistan. BOP increase their branches to
662 this year. Working with the BOP was a great experience and I learn banking and improve my
skills i.e., communication skills, ability to do work and client management.
BOP helps me to experience a new environment which teach me punctuality, discipline and
improve my capability.
When I join the BOP, Ms. Saima Khursheed (BOM) guides me about the rules and gives
information about the departments inside the branch.
On the day one, I was assigned to the Accounts opening department where, Mr. Faisal Fiaz provide
me all the information about accounts opening and the documents requirements.
My duties were to fill up the forms i.e., deposit slips, Account Opening form, Annexure A,
Annexure F, Know Your Customer (KYC).
The documents bank requires to open a new account:
Personal Account:
• Customer CNIC
• Next of Kin CNIC
• Photograph (for Photo Account)
• Income Evidence (Job Confirmation Letter or Business Letter)
• Passport (for Overseas Pakistanis)
Business Account:
• Customer CNIC
• Next of Kin CNIC
• Business Letterhead
• Evidence of Business location (office Photograph or visiting card)
• NTN Number (if registered)
I spent three weeks in account opening department and learn to open accounts and collect
information and documents of the customer.
BOP offers accounts according to customer’s requirement i.e., Bank offers Asaan account for
Students and Housewives, Current accounts for business, salaried person and pensioners, Saving
Accounts and Term Deposit Accounts.
BOP dealing in conventional and Islamic banking, I was working at conventional branch. The
product they offers are same in both banking systems only names are different and the calculation
of profit may differ.
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On Term Deposit BOP offers 12.25 to 12.75 percent interest rate. The process of term deposit
account is same as the other accounts, the only difference in term deposit account is customer
bound his/ her money for specific time and take profit on his money.
PLS (Profit/ loss Saving account) are used to save money where, bank also gives profit on PLS
accounts but these accounts are not fixed or as term deposit accounts. Account holder withdraw
money whenever, wherever s/he wants but at the year end bank calculate the profit and deposit
profit to the account.
Current Accounts are the most common accounts, in this sort of accounts bank do not entertain
with the profit bank earned on account holder’s money.
BOP also offers:
➢ Credit Cards
➢ Loan
➢ Insurance
Credit Card:
These cards are visa or master cards like debit cards, the difference between credit cards and debit
cards are as follow:
• Credit card is a credit facility provided by the bank; it has a pre-approved credit limit
which allows customer to purchase anything within the credit limit.
• Debit cards are used to withdraw the money owned by the account holder while, the
credit card is a post-paid card if the credit card holder purchase anything through the
credit card, bank pay money on the behalf of customer.
• Credit card is considered as a hard money user cannot withdraw money from ATM but
via swiping user can pay the amount to the seller.
• It is interest or dent free if the user pay money back to the bank but if user fails to pay
the money before or on due date of billing bank charge interest on the money customer
use.
Loan:
BOP offers to borrow money from bank on easy installment from one year to seven or ten years.
For the borrowing money, borrower required to open account at least six months old account will
be eligible to borrow money from bank.
Interest rate for the loan is up to 39 percent. It depends which kind of financing customer required.
BOP offer two types of financings:
1. Borrower can borrow money in the exchange of property, car or gold. For this type of
borrower bank check the documents valuate the price and offer the percentage. Bank
P a g e | 21
also require the evidence of income if the borrower is a salaried person, bank require
salary slips and if the borrower is a business man, bank require income statement.
2. The BOP offers to buy property or car on the behalf of customer write the cheque of
full payment to the company or a person. It also required the same process i.e.; borrower
must open the account in the bank and provide income statement or salaried slip to the
bank and bank evaluate according the documents borrower provide and offer the
percentage.
Insurance:
BOP is currently working with IGI and EFU for insurance purpose, the price of insurance is
depending on the package.
BOP offer insurance for:
• Medical
• Transport
• Property
My Duties:
1. For the first three weeks I was assigned to assist Mr. Faisal Fiaz (Personal Banking
Officer), where my duties were:
o Collect and check the documents from customer and provide details about the
accounts and fill up the forms and collect the signatures and stamp of customer on
the form.
o Verify the data by rechecking the details i.e., Name, spellings, address, CNIC, etc.
before compiling.
o After preparing a file, I submit file for screening. They put customer details on the
software to check either s/he is convicted in any case of fraud or money laundering
etc. The department collect and attach the data from the software and send it back
for further processing.
o After the screening process, I submit the file to Ms. Rabia Naz (Customer Relation
Officer) for stamping and signatures.
o At the end of the day, Mr. Faisal and I we both upload the prepared account to the
bop software for further processing. Computers are not allowed for internees that’s
why I only assist in documents preparations.
2. After that, I was assigned to the verification department where Ms. Samar Liaqat assigns
me to do such verifications:
o To verify the vouchers
o Check the amount in figure as well as in alphabets
P a g e | 22
o Date
o Cutting
o Signature and stamps.
3. In my last two weeks, due to the shortage of employees Mr. Khawar Ashraf (Branch
Manager) assigned Me, Ms. Rabia Naz and Mr. Faisal Fiaz to resolve discrepancies.
o Mr. Faisal Fiaz forward printed files along with requirements to Ms. Rabia. Me and
Ms. Rabia check the requirements thoroughly and fill up the required information
if we already have, otherwise we call the account holder and ask them to visit our
branch along with the document required by the bank.
o At the end of the day Me and Mr. Faisal upload the resolved discrepancies to the
system.
o Ms. Taqdees, a fresh intern, entered the bank during the penultimate week of my
internship. She was collaborating with us to solve the discrepancies.
o Together, Ms. Rabia and Ms. Taqdees were filling out the missing details, calling
the account owners for information, and my duty was to revise their work to identify
any errors (if any) and assist Mr. Faisal in uploading.
o We almost resolve and upload 800+ discrepancies.
In my six weeks of internship, I learn:

➢ Managing bank accounts
➢ Opening and closing bank accounts
➢ Processing of deposits and payments
➢ Loan processing
➢ Cash closing
➢ Customer dealing
P a g e | 23
Learning Experiences
Learning with BOP was such a great experience I learn efficiency, punctuality and
discipline. They give me relax working environment and it help increase self-understanding,
independence and self-confidence.
The employees of BOP are professionals, they detailed me every single part of banking
sector. I gained knowledge about cash in/out (daily transection) and closings at the end of the day.
Interns were not allowed in the cash section but the operations manager brief me that how
they create closing where I found two different files. The BOP account holder’s data, bank
expenses and ATM transactions are tagged in one ledger and the second ledger made up with the
data of non-account holder.
Knowledge Gained:
I learned how banking works, what are the procedures. Etc.
Skills Learned:
➢ Communication Skills
➢ Workload Handling
➢ Work Efficiency
I efficiently apply my communication skills and workload management while dealing with BOP. Formatted: Highlight
I participate in every single assignment they give me and I finish it quickly. I double-check the
completed data for errors and fix them (if any) before sending it to the authorized department.
Attitudes/Values: I learn that sitting in the organization attitude does matter. Every employee is
dependent on other employees because there is nothing to do independently for example; If
employee submit the form to the management, s/he must follow the rules according to the law of
the organization and the management staff have full authority to cancel or reject it.
Most Challenging Task: Mr. Faisal Fiaz (Personal Banking Officer, gave me the assignment to
review the Customer Sales Officer's work and point out her errors. As an intern, that work was
challenging, but this one also makes me feel more confident.
P a g e | 24
Ratio Analysis
Ratio analysis is a quantitative method of gaining insight into a company's liquidity, operational efficiency,
and profitability by studying its financial statements such as the balance sheet and income statement. Ratio
analysis also the calculation and comparison of different ratios between two or more different companies.
The following ratios are required to be calculated for banking sector:
I. Net Profit Margin

Net profit margin ratio measures how much a company has net income or profit is generated as
percentage of its revenue. This ratio helps investors to assesses if company is earning enough profit
from its sales and also if operating costs is in control. Net profit margin is one of the most important
indicators of a company's overall financial health.
Formula: Net Profit / Revenue
Year 2021 Year 2020 Year 2019

12440 / 81651 6944 / 86019 8249 / 80867
=0.1524 =0.0807 =0.102
15.24% 8.07% 10.2%
Net Profit Margin

20.00%
15.00%
10.00%
5.00%
0.00%
Net Profit Margin
Interpretation:
After calculation of net profit margin of each year, I have found out that, in 2021 BOP earned more
profit as compared to 2020 and 2019. This means that in 2021 BOP profit margin is much higher
than 2020 and 2019. BOP is doing good operations in 2021 which build a trust between the bank
and the customers. People are happier to keep their money in such a trusted bank.
P a g e | 25
II. Gross Spread Ratio

Gross spread ratio is the ratio of net markup income and gross markup income of the bank. It shows
how much times a bank has its net markup income as compared to the gross markup income.
Formula: Net Markup Income/Gross Markup Income

29876 / 81651 23325 / 86019 26757/ 80867
= 0.3659 = 0.2712 = 0.3309
36.6% 27.12% 33.09%
Gross Spread Ratio

40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Gross Spread Ratio
Interpretation:
The calculation of this ratio shows that The Bank of Punjab has more gross spread ratio in 2021 as
compared to 2020 and 2019. This shows the good financial performance of The Bank of Punjab.
P a g e | 26
III. Spread Ratio

Spread Ratio tells to investors how much bank has earned interest against expense held. Some expenses
associated with income earned. Investors observe the spread ratio, how much bank has earned income
with expense incurred.
Formula: Interest Earned / Interest Expensed

81651 / 51775 86019 / 62694 80867 / 54110
=1.58 1.37 1.49
1.58 Times 1.37 Times 1.49 Times
Spread Ratio
1.6
1.5
1.4
1.3
1.2
Spread Ratio
Interpretation:
The calculation of spread ratio and its comparison with other banks shows that Year 2021The Bank
of Punjab has higher spread ratio than the other two Years. This ratio helps the investors to decide
to invest and get the good return, After the calculation every investor wants to invest in BOP as it
has good interest income as compared the interest they are expensing out during the year.
P a g e | 27
IV. Non-Interest Income to Total Income Ratio

The non-interest income is the revenue generated from the non-core activities by the banks and
financial institutions such as loan processing fee, late payment fees, credit card charges, service
charges, penalties, etc.
Formula: Non-Interest Operating Income/Net Interest Income + Non-Interest Income

7904 / (81651 + 7904) 13046 / (86019 + 13046) 3940 / (80867 + 3940)
= 7904 / 89555 =13046 / 99065 =3940 / 84807
= 0.088 =0.132 = 0.046
8.8% 13.2% 4.6%
Non-Interest Income to Total Income Ratio

15.00%
10.00%
5.00%
0.00%
Non-Interest Income to Total Income Ratio
Interpretation:
After calculating the non-interest ratio of each bank from different sectors for each year and I found
that, in the year 2020 BOP earned high non-interest income as compared to 2021 and 2019. This
means in 2020 BOP earned good non-interest income like transaction fee, debit and credit card fee
and other fee as well which are its non-interest income. In the same time, the calculations have
showed that Year 2021 also earned a good non-interest income as compared to 2019.
P a g e | 28
V. Return On Assets (ROA)

Return on assets (ROA) is a metric for gauging how well a business uses its assets to make
money. ROA is a metric that managers, analysts, and investors use to assess a company's
financial standing.
Formula: Net Income/Average Total Assets

12440 / 6,944 / (1095446+868928)/2 8,249 / (868928+714380)/2
(1196952+1095446)/2 =982187 = 8249/791654
12440/1146199 =0.0071 =0.0104
= 0.0109
1.09% 0.71% 1.04%
Return on Assets (ROA)

1.20%
1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
Return on Assets (ROA)
Interpretation:
ROA is used to calculate the risk on the company, if the income is greater than 5% is
typically considered good, while 20% or above is considered great. The ROA analysis of
BOP is less than 5% while the lower ROA indicates there is room for improvement.
P a g e | 29
VI. Dupont Return on Assets Ratio

A good method for breaking down the various factors that affect a company's return on
Asset is DuPont analysis. An investor can use this information to identify the financial
activities that are primarily responsible for the variations in ROA. An investor can evaluate
the operational effectiveness of two companies that are similar using an analysis like this
one.
Formula: Net Operating Margin X Asset Utilization
0.3293 x 0.033 0.1909 x 0.037 0.2687 x 0.0388
= 0.0109 = 0.0071 = 0.0104
1.09% 0.71% 1.04%
Dupont Return on Assets Ratio

1.20%
1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
Dupont Return on Assets Ratio
Interpretation:
By calculating the DuPont analysis for Ratio on Assets shows that the 2021 is higher than
the 2020 and 2019. Ratio on Asset is an analysis method which shows the income status of
company by dividing with the Average Total Assets.
P a g e | 30
VII. Return On Equity (ROE)

The return on equity ratio is the measures of the profitability of a business as compare to the equity. It
is very important ratio because it helps the investors to see how much the shareholders are earning on
their investment. This ratio provides the exact picture for earning the profit by investing in the shares
of the same company.
Formula: Net Income/Shareholder's Equity

12440/56202 6944/46,306 8249/41,311
= 0.2213 = 0.1499 = 0.199
22.13% 14.99% 19.9%
Return On Equity (Roe)

25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Return On Equity (Roe)
Interpretation:
The calculation of the Return on Equity ratio of each year, 2021 is the showed the higher return on
equity ratio as compared to 2020 and 2019. In 2021 BOP earned good income or profit as compared
to the equity of the shareholders and obviously, in 2021 it has highest return to equity ratio as
compared to other two years.
P a g e | 31
VIII. Debt Ratio

Debt ratio is the ratio which indicates that how much assets a company or a business owned through
debt of the same company or business. It is the ratio of total debt over total assets. The term debt ratio
refers to a financial ratio that measures the extent of a company's leverage.
Formula: Total Liabilities / Total Assets

1142119/1196952 1043185/1095446 822245/868928
= 0.954 = 0.952 = 0.946
95.4% 95.2% 94.6%
Debt Ratio
95.60%
95.40%
95.20%
95.00%
94.80%
94.60%
94.40%
94.20%
Debt Ratio
Interpretation:
After calculating the debt ratio of three years, 2021 has highest amount of assets which are financed
by the debts of the bank. Approximately, 95.4% of the assets are financed through its debts. On the
other hand, 2020 also score 95.2% and 2019 score 94.6%. All three years has debt ratio less than 1
or 100% so this means that they have more assets than their debts.
P a g e | 32
IX. Debt / Equity Ratio

The debt-to-equity ratio is a financial ratio that indicates the relative proportion of equity and debt used
to finance a company's assets. This ratio is closely related to leverage, and is also known as risk,
indebtedness, or leverage. This ratio measures your company total debts relative to the amount of
money you invested initially and earning that you have retained over the period of time.
Formula: Debt / Total Shareholders’ Equity

109953/56202 176175/46,306 103176/41,311
= 1.96 = 3.8 = 2.5
Debt / Equity Ratio

4
0
Debt / Equity Ratio
Interpretation:
The calculation of debt-to-equity ratio of all three Year, it showed that in 2020 BOP’s debt-to-
equity ratio was highest as 3.8. A good debt to equity ratio ranges between 2 or 2.5. In year 2019,
ratio is recorded 2.5 which is the good debt ratio according to the benchmark ratios. While the
banks having more than the benchmark ratio. So, this means all these banks are very risky.
P a g e | 33
X. Times Interest Earned Ratio

Based on current income, the times interest earned (TIE) ratio assesses a company's capacity
to service its debt. Earnings before interest and taxes (EBIT) divided by the total interest due
on bonds and other debt is the calculation for a company's TIE number.
Formula: Earnings Before Interest, Taxes, Depreciation, and
Amortization (EBITDA)Interest Expense
81661/51775 86019/62694 54110/80867
= 1.22 = 1.37 = 1.5
Times Interest Earned Ratio

1.6
1.4
1.2
0.8
0.6
0.4
0.2
0
Times Interest Earned Ratio
Interpretation:
The Times Interest Earned Ratio is used to analyze the company’s performance. While
the good TIE ratio considered acceptable risk at 2.5 and lower than 2.5 is considered as
higher risk for bankruptcy. The Bank of Punjab recorded lower than 2.5 in last three
years which is not a good sign for growth.
P a g e | 34
XI. Advances / Deposits Ratio

The advances to deposits ratio measures loans (advances) as a percentage of deposits. A ratio of 100%
or less shows that the bank is funding all its loans from deposits rather than relying on wholesale
funding (funding from the capital markets or other banks).
Formula: Advances/Deposits and Other Accounts

484405/1002955 391161/835068 383313/691017
= 0.483 = 0.47 = 0.5547
48.3% 47% 55.47%
Advances / Deposit Ratio

58.00%
56.00%
54.00%
52.00%
50.00%
48.00%
46.00%
44.00%
42.00%
Advances / Deposit Ratio
Interpretation:
After calculating the advances and deposits ratios of The Bank of Punjab, in 2019 BOP Advance
and Deposit Ration increased to the 55.47% but in the last two years 2020 and 2021 it goes down.
No bank is using 100% of its deposits for funding of its loans. So, by comparing this ratio of each
year BOP is consistently using its almost 50% deposits to fund the loans.
P a g e | 35
XII. Operating Cash Flow Ratio

Operating Cash Flow Ratio tells us that how cash moves into and out of business and how company
pays its short-term liabilities. If its result is less than 1.0, it shows that the company is not generating
enough cash to pay of its current liabilities.
Formula: Operating Cash Flow / Current Liabilities

- 197878377/717396763 178767598/545814953
25022066/717254556 = 0.28 = 0.33
= -0.034
-0.034 Times 0.28 Times 0.33 Times
Operating Cash Flow

0.4
0.3
0.2
0.1
0
-0.1
Operating Cash Flow
Interpretation:
By calculating the operating cash flow ratio of each year, I found out that in last three-year operating
cash flow never reach to the 1. But the year 2020 and 2019 will considered positive cash flow and
the 2021 is recorded in negative. However, greater than 1 considered that the company generating
enough cash to pay of its current liabilities.
P a g e | 36
XIII. Dividend Per Share

The total of a company's declared dividends issued for each existing share of its common stock
is known as the dividend per share (DPS). The amount is determined by dividing the entire
dividends paid out by a company over a period of time, typically a year, including interim
dividends, by the total number of outstanding ordinary shares issued.
Formula: Total Dividends Paid / No. of Shares
3305/4132 2644/2644 1983/1488
Rs. 1.25 Rs. 1 Rs. 0.75
Dividend Per Share

1.4
1.2
1
0.8
0.6
0.4
0.2
0
Dividend Per Share
Interpretation:
Depending on the state of the market, a healthy dividend yield might range from 2% to
6%, although this range is often regarded as desirable.
P a g e | 37
XIV. Earnings Per Share

Rs. 4.71 Rs. 2.63 Rs. 3.12
Earning Per Share

5
0
Earning Per Share
Interpretation:
P a g e | 38
XV. Price/Earnings Ratio

The price earnings ratio is the ratio between share price and earnings per share. This ratio tells the
investors that how much is the worth of the company. In short, it is the goodwill of the business or the
company. The ratio is used to evaluate companies and see if they are overvalued or undervalued.
Formula: Share Price / Earnings Per Share

8.52/4.71 9.71/2.63 10.9/3.12
Price / Earning Ratio

4
0
Price / Earning Ratio
Interpretation:
The price Earnings ratio shows that what market is willing to pay today for the business on its past
or future earnings. After calculating this ratio of all three years the 2020 score the 3.7 highest price
earnings ratio as compared to other two years.
P a g e | 39
Future Prospects of the Organization

The Bank of Punjab intends to open additional branches in a variety of locations to amuse
customers. The Bank of Punjab's primary goal is to strengthen the human resource system. HR
continues to pursue a multi-pronged approach in 2021 with an emphasis on learning and
development, career advancement, and fostering a pay for performance culture throughout the
firm.
A thorough succession plan has been implemented in accordance with organizational goals to give
internal Bank personnel advancement possibilities. The goal of the Succession 61 Planning Policy
is to provide a transparent framework for identifying, evaluating, and developing successors to
take on greater responsibilities in Key Positions within the Bank. The succession planning policy
aids the bank in fulfilling the following goal:
➢ Identifying future leaders of the Bank
➢ Ensure continuity of the Business & Resources
➢ Minimize disruption & knowledge loss caused by vacant slots
➢ Increase effectiveness of leadership development
➢ Provide growth opportunities and progression path to employees
developing high potential employees to serve as the foundation for long-term planning,
accomplishing future objectives, and enhancing organizational performance. Every year, a
succession planning exercise is carried out. An annual exercise in succession planning is done for
the Bank's critical positions.
P a g e | 40
Conclusion
The Bank of Punjab has made significant contributions to the nation's capital formation and
industrial growth. According to information about the bank's financial performance as shown in
the financial analysis, that bank is sharing the majority of the nation's banking business.
Additionally, the bank's announced and implemented policies and programs have been a
significant contributor to both trading and non-trading growth.
They support trade both inside and outside the country. The Bank of Punjab has worked hard to
maintain its position as one of the most cutting-edge financial institutions, and it continually
exhibits enormous growth in all areas of its operation. However, following scheduling, the increase
of earnings has somewhat slowed down as a result of its focus on consolidation and restricted
lending. However, the ban is performing in line with its intended objectives.
The bank's procedures are consistent and run very efficiently. All amenities are made available to
the staff, and they receive generous pay. Employees are under pressure to perform at their highest
level. In all of the bank's operations, the merit-based system is in place. The administration has
researched how other banks are run, and all of their issues and downsides have been planned to be
avoided.
As a result, the management's policies are appropriate and progressive.
P a g e | 41
Recommendations for Improvement

➢ The following suggestions may prove beneficial to the bank in light of the knowledge
gained through the internship and organization research.
➢ The main goal should be raising public awareness in order to take a sizeable chunk of the
nation's banking market.
➢ It should start a methodical public relations campaign for this purpose.
➢ A bank's physical amenities can help improve its standing and good reputation. For the
benefit of the consumer, the bank should maintain certain amenities like furniture and
parking spaces.
➢ In order for the BOP to draw in professionals and educated individuals, the salaries of the
officers must be competitive with those of other commercial banks.
➢ The Bank of Punjab should cut costs wherever possible.
➢ Special recognition should be given to the diligent workers who went above and above in
the bank.
➢ The bank has to develop creative products. It would be wise to create these solutions while
taking into account the discrepancy between what customers desire and what their banks
are offering.
➢ The Bank of Punjab should priorities advances above investments.
➢ The bank should develop services or solutions that allow consumers to conduct telephone
banking, for example, so that they never need to visit the bank.
➢ The Bank of Punjab should make use of cutting-edge technology, such as computerization
and fax installation, can provide loans, and other services to consumers quickly, accurately,
and in accordance with standards.
➢ The manager level should be given the authority.
➢ To ensure prompt information delivery, all regional offices and branches should be
networked to the corporate headquarters.
➢ The Bank of Punjab's management must to steer clear of political influences and award
loans based solely on merit.
➢ The bank needs to develop a strategy for preparing its recovery function for conflict and
acknowledge the recovery function.
P a g e | 42
Reference & Sources used
Wikipedia
Google
Bank of Punjab Management and Employees
Bank of Punjab Official Website
Annexes
https://www.bop.com.pk/Products.aspx
https://www.bop.com.pk/Documents/Financials/Annual%20Accounts/BOP%20Annual%2
0Report%202021.pdf

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Virt ual University of Pakist an

Evaluat ion Sheet for Internship Report

Evaluation Criteria Result

Congratulations you have successfully PASSED the written stage of your

Carefully read Lesson No.6 and prepare your presentation slides

Keep checking your VU Gmail account. You will be informed about

THE BANK OF PUNJAB

A REPORT SUBMITTED TO THE DEPARTMENT OF MANAGEMENT SCIENCES,

Student Name: Waseem Ahmed

Department of Management Sciences,

Virtual University of Pakistan

01 Overview of The Banking Sectors 01

02 Overview (The Bank of Punjab) 03

07 Future Prospects of the Organization 39

09 Recommendations for Improvement 41

10 Reference & Sources 42

Overview of Banking Sector

Overview (The Bank of Punjab):

Conventional Branches 548

Awards and Rewards:

Total Amount Disbursed Rs. 6 billion

Organizational Hierarchy chart

The Bank of Punjab

Operations Manager Sales Manager

Organizational structure and Departments

Brief Introduction of all the departments

Human Resource Department

Compliance and Audit Department

2. National Bank Limited

4. Muslim Commercial Bank

5. United Bank Limited

Advisory Services Hospital Finance

Small and Medium Enterprises (SMEs)

Product & Services Offered BOP Apni Dokan

BOP Khaas Banking

BOP Khaas Current Account BOP Khaas Saving Account

Government Initiatives Department

Asset Side Products

Comments on the organizational structure

In my six weeks of internship, I learn:

The following ratios are required to be calculated for banking sector:

I. Net Profit Margin

Formula: Net Profit / Revenue

Year 2021 Year 2020 Year 2019

Net Profit Margin

Net Profit Margin

II. Gross Spread Ratio

Formula: Net Markup Income/Gross Markup Income

Gross Spread Ratio

Gross Spread Ratio

III. Spread Ratio

Formula: Interest Earned / Interest Expensed

IV. Non-Interest Income to Total Income Ratio

Formula: Non-Interest Operating Income/Net Interest Income + Non-Interest Income

Year 2021 Year 2020 Year 2019

Non-Interest Income to Total Income Ratio

Non-Interest Income to Total Income Ratio

V. Return On Assets (ROA)

Year 2021 Year 2020 Year 2019