40347717 Bank of Punjab

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The Bank of Punjab

THE BANK OF PUNJAB MAIN BRANCH

LAHORE

Internsh ! Re!ortON BU"INE"" PRACTICE" AT THE BANK OF PUNJAB

"UBMITTE# TO$"IR "UFA%AN "AN#U

"UBMITTE# B%$MUHAMMA# &A"IM MUNA'AR

COM"AT" Inst tute of Infor(at on Te)hno*o+, Lahore

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The Bank of Punjab

ACKNO'LE#-EMENT

I am really pleased here to acknowledge the sheer efforts and extreme of numerouspeople, those who have provided me their relentless service in the completion of my

internship report on Business practices at The Bank of Punjab !

I would like to express my gratitude to my advisors in The Bank of Punjab who support

me to under stand the working in the bank, during my internship! They really helped me

a lot to gain practical knowledge about general banking and corporate banking! I am

also grateful to "r! "a#har $"anager% and all my supervisors during internship period!

&ithout their guidance, this exercise of internship would not have resulted in a success!

'econdly I would like to thank my advisor "adam (yesha for her assistance and

inspiring attitude! I am highly obliged to my respectable advisor and state my gratitude

for her valued guidance and her concern about my internship!

A#P .A))ount n+ / F nan)e0


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The Bank of Punjab

#E#ICATION

I dedicate this report to my lovingparents without their guidance Iwould have gone astray.


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The Bank of Punjab

Tab*e of Content

E1ECUTI2E "UMMAR% 33333333333333333333333333333333333333333333333333333333333

INTRO#UCTION TO THE BANK OF PUNJAB 33333333333333333333333333333333333)I'T*+ !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!.I'I*/!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"I''I*/ 'T(T0"0/T!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1

BANK PROFILE 33333333333333333333333333333333333333333333333333333333333333333333B*(+2 *3 T )0 2I+04T*+'!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"(/(60"0/T!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!7

OR-ANI7TIONAL CHART 333333333333333333333333333333333333333333333333333333333

B+(/4) )I0+(+4) !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!COMPARATI2E ANAL%"I" 3333333333333333333333333333333333333333333333333333333B (/9I/6 I/2:'T+ !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!4 *"P(+I'*/ &IT) *T)0+ B(/9' !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!4 :++0/T 3 I/(/4I(; P*'ITI*/ *3 T)0 B (/9 *3 P :/

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The Bank of Punjab

E1ECUTI2E "UMMAR%

This report is about The Bank of Punjab, its history, and the functions of the bank!This report contains detail about what I have learned in my eightDweek internship in

The Bank of Punjab! It starts with the short history and background and brief

introduction about the management of The Bank of Punjab! The vision of the bank

along with its mission and existing status has also been discussed! This report

contains detail about business practices in The Bank of Punjab!

The purpose of this exercise was to learn while working in the practical field!

'pecially, the knowledge related to the 6eneral Banking, foreign exchange and

advances! It has really helped me observe to what extent the bookish knowledge is

being practiced in real field!

This report contains the 4omparison of other banks with the bank of Punjab, current

financial position of the bank, the business process of the bank and all my learning,

during the internship period!

A#P .A))ount n+ / F nan)e0


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The Bank of Punjab

In t ro=u) t on to The Bank o f Pun jab

The Bank of Punjab is working as a scheduled commercial bank with its network of =@?

branches at all major business centers in the country! "E' P(4+( has awarded theBank with the credit rating ((D for ;ong term and (7F for 'hort term, based on its

financial results for the year ended as on >7st 2ecember =88?! The Bank provides all

types of banking services such as 2eposit in ;ocal 4urrency, 4lient 2eposit in 3oreign

4urrency, +emittances, and (dvances to Business, Trade, Industry and (griculture! The

Bank of Punjab has indeed entered a new era of science to the nation under experience

and professional hands of its management! The Bank of Punjab plays a vital role in the

national economy through mobili#ation of hitherto untapped local resources, promoting

savings and providing funds for investments! (ttractive rates of profit on all types of

deposits, opening of 3oreign 4urrency (ccounts and handling of 3oreign 0xchange

business such as Imports, 0xports and +emittances, 3inancing, Trade and Industry for

working capital reGuirements and money market operations are some facilities being

provided by the Bank! The lending policy of Bank is not only cautious and constructive

but also based on principles of prudent lending with maximum emphasis on security! (s

agriculture is considered as backbone of our economy the Bank of Punjab has

introduced H9issan 2ost (griculture 3inance 'chemeH to small farmers!

HI"TOR%

0stablished in 7A5A, in pursuance of The Bank of Punjab (ct 7A5A and was given the

status of scheduled bank in 7AA?! It is principally engaged in commercial banking and

related services with its registered office at 1D0gertonDroad ;ahore!

2I"ION

To be cu s tomer focused bank w i th s e rv ice exce l l ence


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The Bank of Punjab

MI""ION "TATEMENT

To e x c e e d t h e e x p e c t a t i o n s o f o u r s t a k e h o l d e r s b y l e v e r a g i n g o u r

re la t i onsh ip wi th the 6overnm ent o f Punjab and de l iver ing a complete

range of professional solutions with a focus on programmed driven products servicesin the (griculture and "iddle Tier "arkets through a motivated team!

OUR 2 ALUE"

O u r C u s t o ( e r s as *ur first priority

P r o f t a b * t , for the prosperity of our stakeholder

that allows us to constantly, improve

and succeed

C o r ! o r a t e s o ) a * to 0nrich the ;ives of community where

r e s ! o n s b * t , we operate

R e ) o + n t o n a n = for talented and high performing

r e > a r = employees

E ? ) e * * e n ) e in every thing we do

I n t e + r t , in all our dealing

R e s ! e ) t for our customer and each other


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The Bank of Punjab

Bank Pro f *e

BOAR# OF The #IRECTOR"

M r 3 " h a h @ a = H a s s a n P e r e @

C h a r ( a n

( 'erving 6radeD== 6ovt! *fficer, having wide management

administrative experience! ;ast assignment 'ecretary "inistry of

'cience Technology 6overnment of Pakistan!

M r 3 H a ( e s h K h a n

P r e s = e n t

Professional Banker! "B( from :'(!

Mr3 "a* (an " == u e

# r e ) t o r

' e rv ing a s ' e c r e t a ry 3 in an ce D 6 ove rnmen t o f P u n jab

M r 3 " k a n = a r M u s t a f a K h a n

# r e ) t o r

( n eng inee r b y p r o fe s s ion J 4ha i rman 4h ie f 0xecu t ive " i l l a t Trac to r s ; imi t ed !


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The Bank of Punjab

M a n M u h a ( ( a = L a t f

# r e ) t o r

( p rominen t In du s t r ia l i s tD 4 hen ab 6r oup !

" , e = " a * ( a n A * " h a h

# r e ) t o r

( n 0c ono mis t by p ro fe s s ion h o ld ing P h2 $ f inanc e% f r om9 el le y ' ch oo l o f B us in e ss (d mi ni st ra ti on , I nd ia na:n ivers i ty, : ' ( !

Mr3 "h eh @a= A* Ma* k

# r e ) t o r

( l e ad ing Ind us t r i a l i s t f rom the 6u a rd 6 r o up o f 4ompan ie s !

M r 3 - o h a r E j a @

# r e ) t o r

4h ie f 0xecu t ive 0 j a# 6 rou p o f 4o mpan ie s !

M r 3 & a s a r 7 u * f a a r K h a n

# r e ) t o r

( r en own ed ag r i cu l tu r i s t ! 6 r adu a te f r om 4ambr idg e !

M r 3 J a h a n + r " = = u


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The Bank of Punjab

# r e ) t o r

( p ro min en t Inves tm en t (d v is o r!

MANA-EMENT

P r e s = e n t " e ) r e t a r a t

" r ! ) am esh 9ha n P r e s id en t

" r s ! (n jum (mi r P r inc ipa l ' t a ff * ff i c e r

I n f o r ( a t o n Te ) h n o * o + , # s o n" r ! (n is IGbal 0 ! . !P! E 6enera l "anage r " r! ( bd u l + a sh i d 9 h an ' ! .!P! E In D c ha rge

A = ( n s t r a t o n # s o n" r ! ( ami r I f t i kha r (hmed 6ene ra l " anage r " r ! + ia# (k h ta r 0 !*!4 ! E 4h ie f "a nag e r

O ! e r a t o n # s o n" r ! < aved (hmed9haw a ja 0! . !P! E 6ener a l "ana ger

" r ! (t h a r (# i# 2oga r * !* !4 ! E 4h ie f "ana ge r " r ! ' a j i d ( r i f / oman i 0 !* !4 ! $4onsu l t an t%

F n a n ) e # s o n" r ! / ad eem (mi r * ff i c i a t in g 6 ene ra l " anag e r " r ! + a sh id " ehboob 3 inanc ia l (na ly s t" r ! / ad eem (mir ( ! .!P! E 4h ie f "an a g e r

I n t e r n a t o n a * / Tre a s u r , # s o n" r ! " uhammad ' a l im" i r#a

0 !* !4 ! E 6ene ra l " an age r

" r! B ab a r 'a e ed 9 h an ( ! .!P! E " an a g er $ I nt e rn a ti o na l 2 iv i si o n%"r s ! ' aba 3a r ru kh ( ! .!P E4h ie f 2 ea le r


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The Bank of Punjab

A u = t / I n s ! e ) t o n # s o n" r ! " u hammad ) an i f ) e ad"r ! +a#a ' aeed . !P

C r e = t R s k M a n a + e ( e n t # s o n" r ! (# i# :l )ameed 0 !*!4 ! E 4o u n t ry +i sk "an age r " r ! (b id "ah mo od .!P"r ! ) a fe e# :d 2 in .!P" r ! Tar iG

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The Bank of Punjab

" r ! "u ha mm ad )a ni f 0 !*!4 ! E 0x ec ut iv e I nD ch ar ge" r ! Tajammal )u s sa in ( ! .!P

O ff ) e r D s Tr a n n + I n s t t u t e

" r ! / aveed ) a f ee#' ha ikh ' ! . !P! E (dmin is t ra to r

" r ! Tar iG "ahmoo d" ugha l

( ! .!P

L a > # e ! a r t ( e n t' i r da r (h med < ama l' ukhe ra

; ega l 4o nsu l t an t E 4oo rd in a to r

" s ! Ku bia + am#an In D c ha rg e

B O P 8 s t P u n j a b M o = a r a b a" r ! ' a lm an ' a eed 4h ie f 0 xe cu t ive" r! " uh a mm ad ' a lm a n 4 or p or at e ' ec re ta r y

A + r ) u * t u r e C r e = t # e ! a r t ( e n t" r ! " uhammad < aved" u#a ff e r

' ! . !P! E )ea d

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" anek a

0 !* !4 E " a rk e t ing 4oo rd ina to r

" h a r e s # e ! a r t ( e n t" r ! "u ha mm ad I Gb al ( !.!P! E (s si s ta nt ' e cr et ar y

C o ( ! * a n ) e C e * *a# i "u ha mm ad ; at if 0 !* !4 ! E 4h ie f 4o mp li an ce * ff i ce r

R e + o n a * O f f ) e L a h o r e" r ! Ka lma i (# am .!P! E + eg io na l 4 h ie f " r ! (#har /awa# ( ! . !P! E +eg iona l "anage r

R e + o n a * O f f ) e R a > a * ! n =" r ! (mi r "u mta # ( ! .!P! E + eg io na l 4h ie f " r ! (b d u l ' a l am + eg ion a l "ana ge r


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The Bank of Punjab

R e + o n a * O f f ) e F a s a * a b a =" r ! (mi r (l i 'ad iGu e .!P! E +eg ion a l 4h ie f " r ! ' a eed (hmad + ah i + eg iona l " anage r

R e + o n a * O f f ) e - u j r a n > a * a" r ! ' ! " ! ( t i f 0 !*!4 ! E +e g io na l 4h ie f " r ! ' a r f r a# (hma d + eg iona l "an a ge r

R e + o n a * O f f ) e M u * t a n" r ! / a eem u l ) a s san" ehmo o d

( ! .!P! E + eg io na l 4 h ie f

" r ! I j a# IG ba l + eg ion a l " anage r

R e + o n a * O f f ) e K a r a ) h" r ! (mir )assa n ( ! . !P E +eg ion a l 4h ie f

" r ! In a m ud 2in (kba r "a nag er


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The Bank of Punjab

OR-ANI7TIONAL CHART

The Bank of PunjabOrganizational chart


Cha r(an / Boar=

of # re)tors

Mana+ n+ # re)tor

Re+ ona*Off )e Lahore

-MO!erat on

-MTreasur,

-M A=( n-MF nan)e

-ML ab * t,

-M"!e) a*

M+t3 # 3

-MCountr,R sk M+r3

-M "ME# 3

Re+ ona*Off )e Mu*tan

Re+ ona*Off )e F"#3

Re+ ona*Off )e R'P3

Re+ ona*Off )e Kara)h

Re+ ona*Off )e

-ujran>a*a

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The Bank of Punjab

LAHORE RE-ION

In ;ahore region The Bank of Punjab have -@ branches out of which 77 branches are

dealing in foreign exchange! In ;ahore region regional office is at 1 0gerton roads

;ahore!

FAI"ALABA# RE-ION

In 3aisalabad region The Bank of Punjab have >5 branches, out of which ? branches

are dealing in foreign exchange!

-UJRAN'ALA RE-ION

In 6ujranwala +egion, there are ?@ branches! In this region @ branches are providing

foreign exchange banking facility!

RA'ALPIN#I RE-ION

In +awalpindi region B*P have ?7 branches with ? branches dealing in foreign

exchange!

MULTAN RE-ION

In "ultan region Bop have -8 branches, out of which 1 branches are providing theforeign exchange services facility!

KARACHI RE-ION

There are only four branches in this region! (ll these branches are dealing in foreign

exchange!? branches

!


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The Bank of Punjab

Bran)h h erar)h,Ma n Bran)h Lahore


Mana+er A= an)es

Fore?3 Mana+er Bran)hMana+er

Ch efCor!orate

(dvances2ept!

(ccounts2ept!

+emittances 2ept !

3orx!2ept!

(cc!opening

2ept 3

4ashE2eposit 2ept !

4onsumer3inances

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The Bank of Punjab

Co(!a ra t e Ana* ,s s

Bank n+ In=ustr,

Banking is one of the most sensitive businesses all over the world! Banks play very

important role in the economy of a country and Pakistan is no exemption! Banks are

custodian to the assets of the general masses! The banking sector plays a significant

role in a contemporary world of money and economy! It influences and facilitates many

different but integrated economic activities like resources mobili#ation, poverty

elimination, production and distribution of public finance! It is purchase of car or buildingof a home, banks are always there to provide the services! It is playground or any

educational or healthy societal activities the money of banks nurtures them! It is an

industrial project or agricultural development of the country the sponsorDship of banks is

very much involved! Banks play very positive and important role in the overall economic

development of the country!

Pakistan has a wellDdeveloped banking system, which consists of a wide variety of

institutions ranging from a central bank to commercial banks and to speciali#ed

agencies to cater for special reGuirements of specific sectors! The country started

without any worthwhile banking network in 7A?1 but witnessed phenomenal growth in

the first two decades! By 7A18, it had acGuired a flourishing banking sector!

Co(!ar son > th other banks

/ationali#ation of banks in the seventies was a major upset to domestic banking

industry of the country, which changed the whole complexion of the banking industry!&ith irrational decision at the top all the commercial banks were made subservient to

the political leadership and the bureaucracy! 'peciali#ed banking institutions were

already working in the public sector! The new accountability paradigm changed the

business ethics in the banking industry, and with this change started the disaster!


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The Bank of Punjab

/ationali#ation of banking industry was accompanied by violent changes in the external

value of rupee! The commercial banks thus lost their assets management eGuilibrium,

initiative and growth momentum! They ceased to be a business concern and became

big bureaucracies! This was accompanied by indiscreet loaning under political pressure!

They suffered from three terminal diseasesL nonDperforming loansM higher intermediation

cost!

The era of nineties was the climax of privati#ation, deregulation and restructuring in the

domestic banking industry and financial institutions! The "uslim 4ommercial Bank was

the first bank to privati#e! 3ollowed by (llied Bank limited, :nited Bank ;imited and now

the )abib Bank ;imited have been privati#ed! *ne thing good for that particular period

was the recruitment of fresh officers in the domestic banking industry through wellD

organi#ed policies of Banking 4ouncil! &ith the decay of Banking 4ouncil there wasflood of insincere, nonprofessional, incompetent candidates directly appointedE recruited

in all the domestic banks of the country!

Pub* ) se)tor banks

/ational Bank of Pakistan

/BP3irst &omen Bank ;imited 3&B

The Bank of 9hyber 9B

The Bank of Punjab B*P

The government of Pakistan permitted small private sector banks to operate, which

indulged in doubtful policies to promote business! The public sector banking, which

constituted the backbone, thus continued to suffer because of their approach, si#e and

carried over liabilities! "ehran Bank is the prime example of that kind of lax banking in

the country, which ultimately merged into /ational bank of Pakistan i!e! last resort of

domestic banking industry!


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The Bank of Punjab

Lo)a* Pr ate Banks

(skari 4ommercial Bank ;imited

Bank (lD3alah ;imitedBank (l )abib ;imited

Bolan Bank ;imited

3aysal Bank ;imited

"etropolitan Bank ;imited

Platinum 4ommercial Bank ;td

Prime 4ommercial Bank ;imited

'audi Pak 4ommercial Bank ;td

PI4I4 4ommercial Bank ;imited'oneri Bank ;imited:nion Bank ;imited

"uslim 4ommercial Bank ;imited (llied Bank of Pakistan:nion Bank ;imited"ashreG Bank

In the meanwhile, western banks started entering into the business! They, with the

support of ruling elite, concentrated on the big business, leaving the routine business to

the local banks! This reduced the profitability of the local banks!


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The Bank of Punjab

(4B @7,1>= >8,8>@ =-,1@A

B() >?,=?8 =>,11@ 75,5>7

B*P =>,1-1 -,-=7

5,=A@

BB1,1-7 >,=A5 7,>=5

3B =?,@@? =7,A>@ -,5?=

:/I*/

B(/9

>=5,75= 7-1,@=> 7?=,511

9B =,-?8?A8

=,775

"B @,81A >,@>= 5@-

"etro =5,@7@ 7A,??? 7@,87>

"4B 75=,18- 15,A=? 5A,-78

/BP >-=,5-- 7?8,@?1 7?>,@=@

P4B =7,7@@ 78,51- 78,>8-

PB 7?,-?8 A,87- 1,@>?'PB 7=,>?7 5,@==-,>-@

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77,>15A,5??

:B>1,1-8 =5,5A8 77,5==

:B;7@?,A7@ 1?,771 -A,>5@


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The Bank of Punjab

Co(!arat e Ana*,s s of Earn n+ !er "hare of =o(est ) Bank n+ In=ustr, of

Pak stan

Na(e of the Bank 8& 7>N

Bank (l )abib 8!18 7!?? 781N

Bank of Punjab 8!=> 7!71 ?81N

Bolan Bank 8!81 8!78 ?>N

3aysal 4ommercial

Bank

7!A7 7!>A D=5N

9('B Bank 8!7- 8!8@ D-5N

"4B =!=7 7!A= D7>N

"ee#an Bank 8!71 8!>5 7=-N

"etropolitan Bank 7!8A 7!-5 @?N

PI4I4 4ommercial

Bank

8!@- 7!8@ 55N

Prime 4ommercial

Bank

8!?- 8!1- --N

'audi Pak 4ommercial

Bank

8!A= 8!>- D-7N

'oneri Bank 8!-8 7!=7 78=N

:nion Bank 8!@? 8!-= 7>N


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The Bank of Punjab

E8;;

;

8;;

th Rate .earn n+ !er share0 ACB

BAH

BOP

BB

FCB

KB

MC

MB

Met

PIC

PCB"PC

"B

(bove chart show the growth of all local banks! The bank of Punjab has highest growth

among its local competitors!

-ross Assets of # fferent #o(est ) Banks of the Countr, .Rs3 n M ** on0

-ross Assets

Bank 5@,>51

B() ?A,?>1 @5,7?5

B*P =A,@=@ ?>,-=7

BB 78!@A@ 77,1=-

3B >-,-17 ?1,-8-

9B ?,8>1 5,AA8

"B -,A17 77,78=


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The Bank of Punjab

"etro ?7,>57 @5,A5=

"4B =>@,7>A =1=,>=?

/BP ?>=,58> ?17,5-8

P4B =1,A5= ?8,7>?

PB =7,->1 =A,@--

Total A@@,A81 7,7>A,??-

A=( n strat e E?!enses of # fferent #o(est ) Banks

Bank 58 >1@

3B -7A 5>@

9B =8? >=1

"B 7A@ =@@

"etro @7> --=

"4B 5,81A 1,@1@

P4B >=- @-?

PB @7= 17A


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The Bank of Punjab

Tota* E u t, of # fferent #o(est ) Banks .Rs3 M ** on0

Bank 7,=7-

"B 7,?1- 7,->1

"etro =,81? =,1@>

"4B -,>7? 1,1=-

/BP 7?,=1A 75,7>?

P4B 7,>=> 7,15?

PB 7,>58 7,@>-

Current F nan) a* !os t on of The Bank of Punjab

# re)torDs Re!ort

*n behalf of the Board of 2irectors, I am pleased to present accounts of the Bank of

Punjab for the half year ended 8, =88@!

2uring six months period under review, PakistanOs economy has gained significant

momentum with broad based economic growth in all sectors, which can be attributed to

consistent application of wideDranging structural reforms, prudent macro economic

policies, confidence in private sector and financial discipline! +esultantly, the country

economic growth rate has exceeded eight percent and the economy has positioned

itself as the second fastest growing economy in (sia!


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The Bank of Punjab

"anufacturing agricultural sectors exceeding their targeted growth rates denote that

positive affects of growth in these important sectors of our economy shall be transferred

to other sectors of the economy augmenting their growth in periods to come!

It gives me immense pleasure to inform you that your bank has achieved an unD

precedented results for the six month period under review by earning highest ever profit

$both before after tax% 0P' for any half yearly period since its operations! Profit

$before tax% of +s!7,A85 million indicates growth of +s!1A7 million $17N% from last year

corresponding period figure of +s!7,771 million! &hile Profit $after tax% of +s! 7,@>7

million shows increase of +s!-?? million $1>N% resulting in 0P' of +s!5!?1! This

impressive performance is essentially ascribable to increase in net markup income of

+s!15A million $787N% showing consistence in banks reliance on earning from its core

activity! Total asset base of the bank has risen by +s!7A,==A million to +s!5@,@?5 million! (dvances have reached a level of +s! ?-,5?8 million, signifying growth of 7AN in high

return asset of the bank from the figure on 2ecember >7, =88?, while deposits have

increased to +s!18, ?57 million showing growth of =AN! BankOs determined focus on

improving its deposits base has resulted in phenomenal rise in deposits, which apart

from providing much reGuired liGuidity also lowered bankOs advances to deposits ratio to

a healthy satisfactory Nage of --N!

*wing to splendid performance sound financial footing "Es P(4+( have upgraded

long term credit rating of your bank from (F to ((D $double ( minus% and short term

rating from (7 to (7F which is the highest benchmark in short term rating scale! our

bank is in compliance with all regulatory rules regulations including compliance with

recommendations of BaselDII 4ommittee! 9eeping in view excellent results the Board of

2irectors of your bank have approved an interim dividend for its shareholders in the

form >8N stock dividend! (part from remunerating stakeholders this bonus issue shall

make your bank in compliance with minimum paidDup capital reGuirement of +s! =,888

million well before specified date!

"anagement is consistently in pursuit of opportunities to improve the BankOs

performance and improve operational aspects of the bank, both Gualitatively and

Guantitatively, benefits of which shall accrue in future!


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The Bank of Punjab

&e extend our utmost appreciation to the management for their record performance!

The Board of 2irectors is also grateful to the 6overnment of Punjab for its consistent

support, 'tate Bank of Pakistan for its guidance, valued customers for their patronage

and business and to its staff for their untiring effort to make the organi#ation a success!


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The Bank of Punjab

THE BANK OF PUNJABBALANCE "HEET A" AT JUNE :;G >>,?1A =-1,77>

Borrowings from financial institutions >,8=1,-1- =,5>7,-8@

2eposits and other accounts 18,?58,A@@ @?,1=?,>77

'ubDordinate loans D

;iability against assets subject to finance lease -7,A5A 57,1A@

*ther liabilities 1?>,18= @-1,@?8

2eferred tax liability 7,>1> 5,A-?1?,-?A,71? @5,?57,>=5

NET A""ET" 78,5AA,1A8 1,5>A,85>

REPRE"ENTE# B%

'hare capital 7,581,?1- 7,@8-,=>8

+eserves >,877,-?= =,118,-?@

Inappropriate profit 7,7>=,1-? 7?>,@A8@,A@7,55= ?,?=8,?-@

'urplus on revaluation of assets ?,A?1,A85 >,?75,-75

Contingencies and commitments 710,899,790 7,839,083


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The Bank of Punjab


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The Bank of Punjab

" ? ,ea r a t +*an)e

Prof tab * t, re*ate= rat os

;8ED per Transaction $except for

staff%

@ 4ash &ithdrawals *ther 4ustomer F

'elf (T"

+s!7@ED per Transaction $except for

staff%


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The Bank of Punjab

- Balance uery +s!78ED per Transaction $except for

staff%

1 "ini 'tatement +s!78ED per page $except for staff%

5 58 column 'tatement +s!7@ED per page $except for staff%

! Transfer of 3unds through 4heGues or 4ash between Branches!


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The Bank of Punjab

BOP &UICK CA"H

The Bank of Punjab :I49 4(') is a running finance facility provided to salaried

individuals through their bank accounts with the Bank for purchase of consumer items or

personal needs! The facility is an alternative to consumer financing offered by other banks

except it is +E3 instead of 2emand finance, which is more favorable to the borrower !

ELI-IBILIT% CRITERIA

Between =@ and @@ years of age

Permanent employee of selected organi#ations having at least > years of

experience

4omputeri#ed /ational Identity 4ard holder

/et take home salary is +s!7@888E D above as mentioned on salary slipE

salary certificate $excluding benefits%! 3or 6ovt! 0mployees net take home

salary is +s!78, 888ED

Loan a(ount L ( t

"inimum amount is +s!@8, 888 and maximum amount is +s! =88,888

Tenure of Loan

;oan is available for one year, further renewable subject to satisfactory conduct of account!

Mark u! Rate

"ost competitive rate in the market, which will be calculated on daily product basis, which

is

3or senior Bureaucrats 0xecutive (verage six months 9IB*+F -88BP' of

4orporate 4lient with floor rate of 7?!@N p!a!

3or all other client (verage six month 9IB*+ F -88 BP'

&ith 3loor rate of 7-N p!a!


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The Bank of Punjab

*ther 4harges/onDrefundable fee +s!?@8EProcessing 3ee +s! 7,5@8E

2ocumentation charges +s! (ctual

Ho> Loan > ** be re!a =

;oan will be repaid on 2emand E ;ump sum!

Pre "an)t on #o)u(ent Re u re(ents

(pplication 3orm

4opy of 4/I4

= recent photographs

;atest 'alary 'lipE'alary certificate on 4ompanyQs letterhead

;atest 4opy of utility Bills

4opy of service I2 card

- months (E4 statement showing salary being credited

Post "an)t on #o)u(ent Re u re(ents

Two personal guarantees $expected incase of B*P employee%3inancing (greement

2!P! /ote

;etter of hypothecation

Post 2ated 4heGues

&hite 2ocuments

I3 ;etter *f authority

II3 (uthori#ation Econsent

III3 ;etter of (rrangement

I23 2ebit (uthority

23 ;etter of Installment

2I3 :nder taking regarding 9IB*+


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The Bank of Punjab

BOP AA"HAI"H LOAN

8N "arkD:p $7= months%

8N 2own Payment

3+00 )ome 2elivery

3inancing Tenures of 75, =? >- months are also available with nominal

markup

0asily (ffordable 3lexible Installments

uick Processing

/o )idden 4ost, /o Insurance cost

Pro=u)t

The Bank of Punjab (asaish ;oan is 2emand finance facility for purchase of consumer

durable goods like T., +efrigerators, "obiles, "icrowave *vens, and 3ans, (udioE.ideo

system


"a*ar e= Person

4onfirmed permanent employee with one year experience

'alary is routed through a bank account

Pr ate E(!*o,ees

In addition to the above mentioned conditionL

)aving age between =@ and @A years *+ date of retirement, whichever is

earlier

)aving minimum Take )ome salary of +s!78,888ED$+upees Ten Thousand%

per month

"e*f e(!*o,e= bus ness Profess ona*


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The Bank of Punjab

Bank 'tatement for last - months

;atest 4opy of utility bills $0lectricity phone% of residence

Income Tax +eturnE&ealth 'tatement

Bus ness re*ate= =o)u(ents

2ocumentary evidence in business or in the profession for the last = years

Proprietorship 4ertificateEPartnership deed

4opy of Professional 2egree $3or Professionals%

;atest utility bills of current business address

Pro)ess n+ Char+es$ +s!7A8ED

#o)u(entat on Char+es$ (ctual

PO"T "ANCTION #OCUMENT RE&UIREMENT"

3inancing (greement

2!P! /ote


Post 2ated 4heGues

&hite 2ocumentsI3 ;etter *f authority



I23 2ebit (uthority


BOP CAR LOAN

0asily (ffordable 3lexible Installments

uick Processing


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The Bank of Punjab

"inimum 2own Payment

"inimum Insurance

Pro=u)t

B*P car loan is a 2emand 3inance 3acility to Purchase Brand new locally manufacturedE

(ssembled 4ars for Personal :se


"a*ar e= Person

Permanent employees of selected organi#ations with at least > years of service with a

minimum take home salary of +s!7@, 888! 3or 6ovt! 0mployees, /et take home salary is

+s! 7=,888ED

"e*f e(!*o,e=

Business person and professional having minimum > years in current business

)older of computeri#ed national identity card

Between =@ and @1 years of age

Loan A(ount

"inimum amount is +s!=88, 888 and maximum amount is +s! 7,888,888

Tenure of Loan

;oan is available for a period of minimum > years and maximum @ years

#o>n Pa,(ent

2own payment is $78 to=8N% of the value of the car


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The Bank of Punjab

Mark u! rate )har+e=

"ost competitive rate available in the market

3or all customers average six moths 9IB*+F >1@ BP' with &ith 3loor rate 78N p!a!

Other Char+es

/on refundable fee +s!?@8EDProcessing 3eeE 2ocumentation charges +s! >,1@8ED+egistration 4harges (ctual

Insuran)e of the )ar

B*P has arranged insurance facility from its approved list of companies at discount rates

for the convenience of its customers! Insurance premium for the first year will be paid in full

up front with down payment and for subseGuent years along with installment

Month*, Insta**(ent !*an

; oan will be repaid in eGual monthly installments through postdated cheGues! Total monthly

installment includes principal, mark up and insurance amount!

&e can easily calculate monthly installments by multiplying the loan amount with the

pricing factorL

Tenor of Loan Pr ) n+ Fa)tor > ears 8!8>777? ears 8!8=?75@ ears 8!8=88?

#OCUMENT" RE&UIRE#

For sa*ar e= n= =ua*s$

4opy of /I4


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The Bank of Punjab

= +ecent Photographs

;atest 'alary 'lip E 4ertificates on 4omp! ;etterhead

Bank 'tatement for last - months

;atest 4opy of :tility Bills

For se*f e(!*o,e= bus ness !ersons !rofess ona*s

4opy of 4/I4

Two recent photographs

Bank statement for the last I year of business account

If not banking with us Banking certificate from branch manager stating Title,

(ccount number, Business entity, "aintained since, (uthori#ed signatory

4opy of ;atest utility bills

Bus ness Re*ate= #o)u(ents

2ocumentary evidence in business or in profession for the last > years

Income Tax return E wealth tax statement

ProprietorshipEPartnership 2eed

(rticles "emorandum of (ssociation

;atest copy of paid utility bills $Phone 0lectricity% of current business

address

"embershipEpayment receipts of 4hamber of 4ommerceETrade (ssociation E

(njumanDeDTajiran, if available


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The Bank of Punjab

BOP #EMAN# FINANCE .CLEAN0


Between =@ and @A years of age

PermanentE confirmed 6*.TE private employeeE professional maintaining

salary account in any bank, having at least 7 years of experience

"onthly installment should not exceed ?8N of take home salary

4omputeri#ed /ational Identity 4ard holder

Loan a(ount L ( t

:p to =@ take home salaries $"aximum ;oan amount F +s! @88,888ED%

Tenure of Loan

;oan is given for the period of 7year to @ year

Mark u! Rate

"ost competitive rate in the market, which will be calculated on daily product basis, whichis

3or all other client (verage six month 9IB*+ F @@8 BP'

&ith 3loor rate of 7?N p!a!

*ther 4harges/onDrefundable fee +s!?@8EProcessing 3ee +s! 7,5@8E2ocumentation charges +s! (ctual

Pre "an)t on #o)u(ent Re u re(ents


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The Bank of Punjab

4opy of 4/I4

;atest 'alary 'lipE'alary certificate on 4ompanyQs letterhead

Two personal guarantees with 4/I4 $exemption of B*P staff%

0mployer 4ertificate on companyO letter head with joining date, current

designation, length of service, gross salary certificate from )+ department

for perks

2epartmental :ndertaking regarding salary rout though

2ata check

:ndertaking +egarding Payment of post dated cheGues!

Post "an)t on #o)u(ent Re u re(ents

Two personal guarantees $expected incase of B*P employee%3inancing (greement

2!P! /ote


Post 2ated 4heGues

&hite 2ocuments

I3 ;etter *f athoriety



I23 2ebit (uthority


2I3 :nder taking regarding 9IB*+


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The Bank of Punjab

HOU"E LOAN

Pro=u)t

The Bank of Punjab house loan is longDterm finance facility for purchase of houseEflat or

construction of house on selfDowned plot or for renovationE home


"a*ar e= Person

Permanent employees of selected organi#ations with a minimum take home salary of

+s!=8, 888

"e*f e(!*o,e=

Business person and professional having minimum @ years in current business

)older of computeri#ed /ational Identity 4ard

Between =@ and -8 years of age

Loan A(ount

Pur!oseM n (u(

A(ount

Ma? (u(

A(ountBank Rate

Purchase of )ouseE3lat

4onstruction+s! >88!888ED +s! 1,@88,888ED

Bank financing up

to 18N of

assessed value

)ome ImprovementE

+enovation E (ddition+s! >88!888ED +s! >,888,888ED

Bank financing upto =8 N of

assessed value


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The Bank of Punjab

Tenure of the *oan

Pur!ose M n (un Ma? (u(

Purchase of )ouseE

flat > years 7@ years

4onstruction > years7@ years with maximum 7= months grace

period!

)ome improvement > years 8@ years

Mark u! rate )har+e=

"ost 4ompetitive rate in the market, which will be calculated on daily product basis, linked

with (verage six months 9IB*+ F>88 BP'M it will be reviewed every Guarter!

$3or each year new amorti#ation schedule will be provided to the customer in case of any

change in mark up%

Other )har+es

/onDrefundable fee +s!?@8ED

Processing 3ee +s! =,A@8ED

.aluation charges, legal charges 'tamp duties, levies etc (ctual

Ho> > ** the *oan be re!a =

;oan will be repaid in eGual monthly installments through postdated cheGues! Total monthly

installment includes principal, mark up and insurance amount!

"onthly installment can easily be calculated for e!g! !if, you take a loan for +s! 7,888,888

for 7@ years! 'imply multiply the 7@Dyear factor by your amount +s! 7,888,888 S 8!88A5@

+s! A5@8 will be your monthly installment payable excluding insurance $;ife Property%!


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The Bank of Punjab

F nan) n+

!er o=Pr ) n+ Fa)tor

> 8!8>7@1? 8!8=?-@@ 8!8=8@=- 8!871151 8!87@5?5 8!87?>AA 8!87>=5

78 8!87=?877 8!877-A7= 8!877787> 8!878-77? 8!878=87@ 8!88A5@

$Insurance premium for the first year will be paid in full up front with down payment and for

subseGuent years along with installments!%

"e)ur t, of the *oan

)ouseEflat purchased

Plot on which construction is to be carried out

)ouse on which renovation is to be carried out

#o)u(ents are re u re=

4opy of 4/I4

Two recent photographs

;ast three 'alary slipsE salary certificate on companyQs letter head with joining

date 4urrent designation, length of service, gross salary certificate from )+

department for perks!$for salaried individuals%


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The Bank of Punjab

Bank statement for last six months for salaried individuals and for the last I

year incase of selfDemployed businessperson

4opy of utility bills

3ee slip of children if applicable

Income tax return E wealth statement

4opy of +ent agreement if living in rented house

Business proof $for a business person%

93 A+r )u*ture F nan) n+

The bank of Punjab is offering following agriculture schemes

9issan 2ost (gricultural 'cheme

9issan 2ost Tractor 'cheme

9issan 2ost "echani#ation 'cheme

9issan 2ost 3arm Transport scheme

9issan 2ost 0slahD0D(ra#i 'cheme

9issan 2ost live stock development 'cheme

9issan 2ost livestock 'cheme

9issan 2ost 4ommercial (gro 'ervices 'cheme

9issan 2ost (gri "all 'cheme

Basic reGuirement for all these schemes are same! But there is little bit difference

according to the scheme and amount of the loan! In most of the schemes the reGuirement

is that the Brower should be resident of cultivated area and own a minimum @Dacre and

maximum @8Dacre area! (mount of loan is different for different loans! 3or all these loan

there must be some security for bank! "ark up rate is different according to scheme!

43 Cor!orate F nan) n++elationship "anagers, at the bank of Punjab are dedicated towards developing

relationships with corporate clients to service their financial needs! (dvances department

provide the advance to the reliable corporate client! The corporate finance department of


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The Bank of Punjab

bank of Punjab is offering different types of loan facilities, like 2emand 3inance, 4ash

3inance, +unning 3inance over draft etc!

3or corporate financing bank the financing limit for client on the basis of its asset and

bossiness exposure! The 4orporate Banking 6roup manages a high Guality asset portfoliobeing an active player in many sectors including textile, sugar, leather, pharmaceutical,

fertili#er, petrochemical, power, automotive, oil and gas distribution, marketing and refining

and fast moving consumer goods industries!

In the dynamics environments of business bank provide the shortDterm and longDterm

funding needs in the most efficient manner, drawing from the full range of our resources

and capabilities! To provide finances bank must look at the affectivity and efficiency of the

business! The bank of Punjab is offering the variety of working capital financing facilities!

The bank of Punjab is also providing the structured finance syndicate to its clients!

53 Tra=e "er )es

The foreign exchange department of bank of Punjab is offering the trade service to clients!

The bank of Punjab offers a full range of documentary letter of credit services as well as

discounting and reimbursements to support any or every part of the customer trade

transaction! 0xperienced personnel use their speciali#ed expertise to innovatively structuretrade transactions and process daily trade transactions, and have endDtoDend responsibility

for your letters of credit, reimbursements, negotiation of documents, and inGuiries! They

also handle export guarantee transactions and government donor flow intermediation!

The bank of Punjab can provides trade related facilities, for an appropriate period, in line

with working capital cycle of client, to assist client in financing their importsEexports! There

are two types of ;4, sight ;4 and usance ;4! In sight ;4 bank pay the amount when it

receive the Bill ;ading from 4orrespondent bank! In usance ;4, there is limit of payment

normally A8 days! 3or providing these facilities bank have following charges schedule!

Char+e s)he=u*e of the bank of Punjab

" +ht B **s


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The Bank of Punjab

I% a% (t /egotiation endL

b% 4ollection charges for restricted;E4 $where negotiation is restrictedto some other Banks and

presented to us for forwarding%!c% (t opening end $at the time of

retirement% +ates of "arkDupi!% If retired within > days from thedate of lodgment!ii!% If retired after > days oflodgement!

/egotiation commission U 8!@8N D "in +s!=88EDF 4ourier 4harges +s!@8ED

+s! =@8ED $3lat% Per Bill F 4ourier 4harges+s!@8ED

(s per approval of 'anctioning (uthority

(s per approval of 'anctioning (uthority

/*T0LS /o "arkDup will be charged from the date of negotiation till the date of lodgement ofdocuments received under Inland ;E4s, where the payment as per reimbursementarrangement is made to the negotiating bank only on receipt of documents!


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The Bank of Punjab

=

>

Usan)e B **s7% /egotiating 0nd

i% "arkup on documentary BillsPurchased E/egotiated

under Inland ;E4

8 =% *pening 0nd

a% (t the time of (cceptance of the

Bills!

b% (t the time of booking

c%(t the time of maturityEdue date

(t 4ollection 0nd

4ollection 4harges 2iscrepancy 4harges

/egotiating commission +s!=88ED3latF4ourier charges +s!@8ED$I% In case of 'ight ;E4s "arkDup is to berecoveredEcharged as per approval of

'anctioning (uthority!$II% In case of :sance ;E4s "arkDup is to berecoveredEchargedas per approval of 'anctioning (uthority!$III% In case of :sance ;4s of our own Bank,"arkDup is to be recoveredEcharged as per approval of 'anctioning (uthority

(cceptance 4ommission U 8!78N per monthshall be recoveredEcharged for the usanceImport Bills for the period beyond the date

upto which the commission has already beencharged at the time of opening of ;4 or thereafter any extension is made in thevalidity of the ;4!

+s!>@8ED $3lat%!

+s!>@8ED $3lat%!

+s!=@8ED $3lat% per bill F courier charges+s!@8ED

+s!@88ED $flat%


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The Bank of Punjab

These all facilities are provided on the specific limit maintained by the corporate bank! The

bank of Punjab is offering 3I", 3(T+ facilities to its clients!

3or foreign trade, The Bank of Punjab has collaboration with following foreign bank for

correspondent!

CORRE"PON#ENT BANK

Bank Na(e A==ress "> ft / Te*e? Curren), A))ount No3

'T(/2(+24)(+T0+02 B(/9

=>D=@ "ahatama6handi +oad, 3*+T"umbai ?88 887

'4B;I/BB (4: V ===8@=?5?=-

B(/9 '(20+(T I+(/'epehr Tower 'omayeh

(ve! P!*! Box 7@1?@D->7 Tehran, Iran

B'I+I+T) 8855D=7=>@= (4: V =7-E7E7E-@87

/(TI*/(; B(/9 *34(/(2(

BanGue /ationale du4anada -88,rue de la6auchetiere uest"ontreal )>B ?;>,4anada

B/244(""I/T 88=78D@=@757 4(2

8A1-7>D==5D88787

:/IT02 B(/9 (6K:+I4)

58>? Kurich, P!*!Box771- 3eldeggstrasse@@, 'wit#erland

:/I;4)KK 4)3 5@A!8>!87!887

2(/'90 B(/9 (9TI0'0;9(B

)olmens 9anal =D7=,29D78A= 4openhagen9, 2enmark

2(B(2999 =1888daba 299 >AA-811-A7

4*""0+K B(/9

4ommer# Bank (6,3rankfurt K3* B4"ITT0 A!-!? )eidrun9ochD.ollbracht

4*B(2033 88?7D?7@=@>8 0:+*

?88D5581?8-D88D0:+

/(TI*/(; B(/9 *3P(9I'T(/

3ilale 3rankfurtE"!3rankfurt Branch,6ermany

/BP(2033 88?7D?7?78> 0:+* ?A7@@7

'T(/2(+24)(+T0+02 B(/9

>1 6race 4hurch 'treet;ondon 04>. *BCD:!9!

'4B;6B=; 88@7D55@A@7 0:+* 87D1851555DA-

:!B!(!3!, P(+I'7A8 (venue 4harles degualle A=@=> /euilly4edex france

:B(33+PP 88?=D-78>>? 0:+*

87D8A===@D88@7D8

/(TI*/(; B(/9 *3P(9I'T(/

A8, (.! 20' 4hampsD0lysees 1@885, Paris,3rance

/BP(3+PP 88?=D-@75=5 0:+*

7=78D7==1D7D718

(B/ ("0+* B(/9

/ew ork Branch,P!*!Box ?@@@E6rand4entral 'tation, /ework, /! 78871 :'(

(B/(:'>> 88=>D-=1>? 0:+* 88@1?1>=?>@8

B( 0+I'4)0 ) P*D:/2 .0+0I/'B(/9

(m Tucherpark 7-,58@>5 "unich 6ermany

) .020"" 0:+* -A78-A>@


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The Bank of Punjab

(6 $) P*.0+0I/'B(/9%:/IT02 /(TI*/(;B(/9

75 3insbury 4ircus;ondon, 04=" 1B< :!9

/BP(6B=; 88@7D55?5A= 6BP

8887D8888->D887

'T(/2(+24)(+T0+02 B(/9

>1 6race 4hurch 'treet;ondon, 04>. *BC :!9

'4B;6B=; 88@7D55@A@7 6BP 87 1851555 87

/(TI*/(; B(/9 *3P(9I'T(/

>3, 1D?, =D4home, /ishi'himbashi, "inatoD9:,Tokyo 78@, -8>,:!'!(!

'4B;:'>> 88=>D?=8771 :'2

>@5=D8?87-5D887

:!B!(!3!$)*/69*/6%;I"IT02

:B(3, 75th

3loor 3ar0ast 3inance 4entre, 7-)arcourt +oad, 6!P!*!Box AA71 )ong 9ong

:B(3)9)C 8858=D1@>5- :'2

-8 8>8888 8878> 8EA-

4ITIB(/9 /!(777 &all 'treet, @ th 3loor E Kone A /ew ork, /7888@

4ITI:'>> :'2 >-=85A@?

:/IT02 B(/9;I"IT02

>8 &all 'treet, /ework, :!'!(! :/I;:'>> :'2 8?8D8?A5D@

O B E C T I 2 E " O F I N T E R N " H I P

This internship was the part of my study course, so objective of this internship was to

learn and gain some practical experience! 2uring the "B( program, I studied many

courses about finance, management etc! )ere my aim was to see the application of this


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The Bank of Punjab

bookish knowledge and its practical implementation! )ow it is useful in practical life! I

saw the differences in bookish knowledge and its application!

In all jobs related to finance, there is involvement of banks! 'o my aim was to learn how

banks deal with corporate and general information about rules and regulation of banks!"y second objective of this internship was to learn about general banking, as customer

I tried to get experience, how to work with people of different age, different educational

background, and different interests! )ow I can be a best team player, how to interact

with officer and deal with subordinates!

!


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The Bank of Punjab

Learn n+ As a " tu=en t In te rn

#ut es

2ate 2escription 'upervisor 7=

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The Bank of Punjab

to @

'eptember

department!

Ne> Kno>*e=+e A) u re=

(s this was my first experience in any bank, so all working of bank was new for me!

About a))ount o!en n+

(ccount opening is a simple process but it becomes complicated in case of corporate

accounts! 3or individual or joint account, account opens on following simple reGuirements!

4opy of national I2 card

&ritten evidence of what applicant is doing

(n introducer $a person who already holds account in the bank% for account

opening!

+eGuirement for company account are as follows

&ritten reGuest on the letterhead of company from an authori#ed person to

open companyOs account4hief executive, company secretary and director along with common seal

must sign resolution

(ttested 4/I4 copies of all directors

3orm =A attested from registrar of joint stock companies

"emorandum and articles of association!

4ertificate of incorporation

4ertificate of commencement of business only in case of public limitedcompany

(fter the completion of these reGuirements, bank will open the account and sends letter of

thanks to its customer! &hen account holder comes with letter of thanks bank will issue

cheGuebook to account holder! If cheGuebook is lost the account holder has to give written


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application for the stop payment of cheGues of that cheGuebook and fill a form for issuance

of new cheGuebook!

Re( ttan)e

Banks offers different types remittance having different specification! These remittances are

demand draft, for out station payment! "ail transfer is to transfer the amount by mail in any

account of same bank! Telegraphic transfer is same like the "T but here fax machine is use

instead of mail! Pay order is used for intercity payment! This is main difference between

2emand 2raft and Pay *rder! 4all deposit receipt is used in case of tender or auction!

CLEARIN-

4learing is used to pay or receive payments to other banks! There are = types of clearing

Inward clearing

*utward clearing

In>ar= )*ear n+

4heGues of our branch that are deposited at other banks are brought to us by /I3T! This is

called inward clearing! In inward clearing we 20BIT aEc of our aEc holder and 4+02IT other

branch!

Out>ar= )*ear n+

In outward clearing cheGues of other banks are presented in our branch! In it we check

certain factors such as words and figure difference, date of cheGue etc!> stamps are

stamped in these cheGues

4learing stamp

4rossing stamp

Payees aEc credited stamp

In outward clearing we 20BIT suspense aEc and 4+02IT aEc no! of our aEc

holders!


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CHE&UE RETURN IN OUT'AR# CLEARIN-

If cheGue is returned in outward clearing we make an entry of the returned cheGue in the

register and give it back to our customer after having his signatures in the register!

CHE&UE RETURN IN IN'AR# CLEARIN-

If the cheGue is returned in inward clearing, we fine our aEc holder +s 788 as a penalty and

also make an entry in the register!

INTER BRANCH CRE#IT TRAN"ACTION .IBC0

IB4 advice is made for both inward and outward clearing!

CA"H

4ash department perform the responsibilities to deal with cash, transfer amounts from one

account to other accounts and calculate the profit for different types of accounts! &hen

cheGue is presented to bank, officer match the word and figure of cheGue! If words and

figure is correct then officer verify the signature and check the date! ( cheGue can be

converted in to cash within six month! (fter six month cheGue expires! 3or P;' account

bank calculate the profit on the minimum balance in account from - th to =Ath of the month!

Bank pays this profit after six moth or transfer in account of account holder after six month!3or corporate account profit is calculated on daily basis! Profit is credited after a moth in the

4P( account! 3ormula used to calculate the profit is

Profit 4apital C days C $N%

>-@ C 788

FOREI-N TRA#E

3oreign trade is divided in two parts, Import and 0xport

I(!orts


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3or import any product, importer first contact with foreign exporter! There are three

possibilities for trade, one is the advance payment of the imported product, second is

contract between two parties and is the ;4, when both parties importer do not rely on

foreign exporter! (dvance payment and contact is simple payment through bank, but in ;4

bank guarantee about the foreign exporter! To open ;4 importer reGuest for issuance of ;4

on legal reGuired paper with Performa invoice, I forms and insurance of the product!

Importer also gives detail of condition of ;4! (fter this reGuest bank will send ;4 through

swift! (fter receiving ;4 documents, foreign importer ships the product and sends the bill of

lading or (&B to local bank! Bank checks the ;4 and bill of lading! If there is any

discrepancy, bank takes the acceptance from importer about the discrepancies! To clear the

imported product from port, importer takes the bill of lading from bank after the payment of

;4! If importer cannot pay the amount there is two facilities from bank, 3I" and 3(T+! In3I" the imported product remain in the custody of bank! Importer has facility to reali#e the

Guantity of product as after payment of that Guantity! 3(T+ facility is normally for 7=8 days!

This facility is for the reliable customers! In this facility customer release the whole

imported product!

E?!ort

0xport is just like imports but here we act as exporter bank! In export we perform all that

activity which foreign banks perform in case of import! 0xporter provides the documents

like bill of exchange, (&B, certificate of origin, packing list and all other document reGuired

in contract or ;4 with 0 form! Bank sends these documents to foreign bank! *n receiving

these documents, bank pays the amount according to conditions in ;4! *r 4ontact! In

export bank provides the refinancing and purchasing facility to customers! &hen customer

has relied on foreign importers then bank take risk and purchase the exports after

shipment! 0xporter receives payment from bank, now whole risk of this trade is converted

to bank! This facility is called negotiation or purchasing! In refinancing bank finance the

local exporter according to prudential regulation of state bank!


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A= an)es

"ain working of (dvances is department is to provide loan to corporate client! This main

job of this department is to maintain the credit limit of client, offer loan, approve loans and

like other work related to corporate loan! /ormally banks offer the loan in form of 2emandfinance, cash finance, running finance and other schemes according to customer

reGuirements! +unning finance facility is to meet the dayDtoDday expenses! In running

finance bank debit the account of corporate client and issue the cheGuebook! 4lient can

cash the reGuire amount from this account! 4ash finance facility is to meet seasonal

reGuirement of cash! 3or example in cotton season, textile related companies reGuire cash

to buy cotton! Bank provide loan and cotton remain in custody of bank, to provide different

loans banks reGuire different securities like ;ien, Pledge, )ypothecation and "ortgage!;ien is marked on liGuid assetsM mortgage is for the assets like land or building! Pledge is

offered for cash finance or seasonal finance!

#o)u(entat on Re u re

6enerally for all types of loans, bank of The Bank of Punjab reGuire following documents!

#o)u(ent For (ccepted 3acility offer letter 3*;;etter of arrangement

2emand promissory note

;etter of continuity

;etter of authority

;etter of installment

(greement for financing


;etter of pledge

"emorandum of deposits of title deeds

4omprehensive insurance policy

Personal guarantee of the "ortgagorE 2irector

(ll facilities (ll facilities

(ll facilities

+unning finance

(ll facilities

2emand finance

(ll facilities

) P*Pledge

&here reGuired

&here reGuired

&here reGuired


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" 'OT ANAL%"I"

"tren+ths

I! The Punjab government is supporting to The Bank of Punjab ! It builds trust of client

on Bank!

II! "E' P(4+( has awarded the Bank with the credit rating ((D for ;ong term and (7F

for 'hort term, based on its financial results for the year ended as on >7st 2ecember

=88?

III! The Bank of Punjab has a large network of branches! There are =@? branches allover the Pakistan

I.! The Bank of Punjab has computeri#ed banking system!

.! The Bank of Punjab provides the online Banking facility to its customer!

.I! To train its employees Bank of Punjab have training center! There are differenttraining session are held for new and old employees!

.II! 3inancial position of The Bank of Punjab is growing every year! The Bank of Punjab

has highest earning per share!

'eaknesses

I! The Bank of Punjab has only few branches out of province Punjab! *ther banks

have competitive edge!

II! (s Bank of Punjab has extensive branches within the Punjab province! It is difficult

to manage large number of branches, further it increase the cost!


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III! The staff members of The Bank of Punjab are not satisfied with the pay scale

increments and promotion criteria as compare to other banks!

I.! The work responsibilities are broken into small parts!

.! The bank is offer regular product line! There is need to enhance the product line!

.I! Turn over rate of employees is increasing, as they are not satisfied with the pay

structure!

O!!ortun t es

I! (s economy is growing, there is more investment demand in Pakistan! Banks have

opportunity to enhance their business!

II! Imports and exports of the country are increasing!

III! &ith the threat of &T* '"0s reGuire more funds to enhance their infrastructure to

improve the Guality! Banks are the source of these funding!

I.! The number of salaried persons is increasing with the economy structure of the

country! This creates opportunity in consumer financing!

Threat

I! The Bank of Punjab has major 6*.T! deposits! &ith change of government policies

it may affect the bank

II! 0ntrance of foreign bank in competition with local bank is great threat for bank of

Punjab


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III! The 'tate Bank of Pakistan often imposes various restrictions on banks! Therefore,

none of banks is independent in policy making and can launch any product without

the permission of the 'tate Bank of Pakistan!

I.! 6overnment legislations about banking sector

.! Political factor more influence on The bank of Punjab


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RECOMMEN#ATION"

;ast five year performance of The Bank of Punjab shows that the bank of Punjab is

increasing its profitability and its deposits! Being the bank of government, the bank of Punjab has major government accounts!

The bank of Punjab should try to maintain the accounts of diversified

companies! This will reduce the risk of government policies

To manage its all branches the bank of Punjab should establish the intranet

system!

To attract new customer bank should offer value added services

The Bank of Punjab should increase the line of product to attract the newclients!

Those activities, which a one person can perform, should be integrated to

save time!

The bank should revise its pay structure and compensation plan according to

the market, in view to decrease the turn over rate

CONCLU"ION

The bank of Punjab is the one the best bank in local banking sector! Its growth rate is

highest among all local banks! There are some flaws like the small product range, have

two are three major 6*.T accounts and like others! The bank of Punjab has potential to

become top ranking bank in Pakistan banking industry!

"y basic purpose of this internship is to learn about the working of bank! 2uring my

internship I got knowledge about general banking, foreign exchange and advances! 'taff

member of bank of Punjab are cooperative with me and really help me to achieve my

objective!


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B b* o+ra!h,

httpLEEwww!bop!com!pk

httpLEEwww!sbp!org!pk

httpLEEwww!businessDstandard!com

httpLEEwww!sheshunoff!com

'taff of the bank of Punjab

(nnual report of the Bank of Punjab


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http://www.bop.com.pk/http://www.sbp.org.pk/http://www.business-standard.com/http://www.sheshunoff.com/http://www.bop.com.pk/http://www.sbp.org.pk/http://www.business-standard.com/http://www.sheshunoff.com/

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The Bank of Punjab

-*ossar,

A= )e ( bankQs written acknowledgement of a transaction

ATM automatedEautomatic teller machine

Asset turno er is a ratio focusing on the volume of sales achieved by thebusiness

Asset !ortfo* o (llocating the funds to different assets classes

A'B (ir way bill

B ** of e?)han+e (n order written by an exporter instructing an importer, or an ImporterOs agent, to pay a specified amount of money at a

specified time

B ** of *a= n+ ( document issued to an exporter by a common carriertransporting merchandise! It serves as a receipt, a contract, and a

document of title!

BP" Basic points $'et by the bank to adjust markup%

Ca! ta* A=e ua), C apital adeGuacy means having enough capital funds to protect it from the risk that customer could lose their deposits as a result of trading losses, e!g! from bad debt by the bank!

C#R 4all deposit receipt

CPA 4orporate premium account

Cre= t rat n+ A measured judgment, or formal opinion, about the likelihood that Interst payments on particular issue of bonds or other debt security will be paid full and on time, and that debt principle will be repaid in

full at maturity! +atings are by specialist agencies! The highestcredit rating for longDterm debt is (((!

Co((er) a* banks (n authori#ed institutions and perform four functions! They accept deposits, make loans, arrange payment of bills and provide a

number of customer services

#ata Che)k 2ata check is a document has records of all loan of customer form all banks


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## 2emand draft

#3P3 Note 2emand promissory note, a legal document

# =en= Part of a companyQs profits paid to shareholders

Earn n+ !er "hare the portion of a companyQs profit allocated to each outstandingshare of common stock

E u t, Total assets minus total liabilities !

FIM 3inance against imported merchandise

FATR 3inance against trust receipt

H,!othe)at on

KIBOR 9arachi Inter bank offer +ate

LC ( bank issued document that guarantees payment for a preDspecified period and amount

Letter Of author t, ( written agreement to allow Bank to deposited or withdrawn from an account L en (n asset held in exchange for debt financing! In lien normally there are liGuid assets like bonds, shares!

Marku! The charge you pay if you borrow money or the income you get if ou invest it!

MT "ail transfer

Mort+a+e "ortgage is charge on immoveable property to secure the finance

NIFT /ational Institute of facilitation technology $pvt%

PL" a))ount Profit loss sharing account

Prof tab * t, Rat o The ratio used to measure the ability of a company togenerate profits!

P*e=+e Pledge is the bailment of goods for security! In pledge goods are in possession of bank!

" +ht LC In sight ;4 payment will be made on receiving the shipment


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documents!

"to)k = =en= ( payment by the corporation in share of stock rather than cash

",n= )ate ( group of banks acting together temporarily to loan money in a

syndicated credit or to underwrite a new issue of bondsTT Tele graphic transfer

Usan)e LC In usance ;4 payment will be made after A8 or 7=8 days of shipment

'ork n+ Ca! ta* 'tock plus debtor minus shortDterm creditor


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A!!en= ?


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Documents

40347717 Bank of Punjab