Internship Report
Internship Report
Internship Report
Internship provide you practical learning along with your bookish knowledge
Polish your skills
Concept becomes clearer
Increase your confidence level
Dynamic thinking becomes part of your daily life during this period of
internship period
Think out of box you have more questions answers session because of
which you becomes more versatile.
Prohibited area was strong room where vault register and cash is kept only
three employees are allowed who got the key of strong room as Manager,
Operation Manager and cashier.
Not allowed to fill blank cheque for customer
In August 1947, various Banks transferred their headquarters and funds to India.
Before partition of Pak-o-Hind, some Banks were operated which were Chartered
Bank, Grind- lays Bank, Imperial Bank of India, Australasia Bank and Habib
Bank. After the independence of Pakistan, Muslim Commercial Bank Limited,
Bank
of
Jinnah. On 1 July 1948. Australasia Bank and Habib Bank were providing
facilities to the Pakistans nation. After some period, Australasia Bank Limited was
converted into Allied Bank of Pakistan.
State Bank of Pakistan is a Central Bank of Pakistan. Other Banks are
Commercial Banks, Specialized Bank and Investment Banks.
Now a day in Pakistan, fifty four banks are operated with thousands of branches.
Banks are providing Banking facilities to their customers and clients by
offering different services and packages.
Pakistans banking sector consisting of Islamic Banks, Private Banks, Public
Sector Banks, and Micro Finance Banks. These Banks are doing Corporate
Banking, Trade Financing, Lease Financing and some Banks are providing
online banking facilities, ATM facility and money transfer facilities also.
Banking sector is a back bone of our economy. If this sector is making progress
3
than whole economy is also growing a lot. Our Agricultural sector, Industrial
sector, Mining sector, Export sector all depend on the banking industry because
Banks provide long term funds as well as short term funds to all these sectors to
meet out their short term as well as long term requirement. Hence, banking
progress is necessary indeed.
the
State bank sharia board approves essential and modal agreements for
surrended by banks
Banking sector supervision in Pakistan
Micro finance
Small medium interprises
Minimum capital requirements for banks
Rimittance facility in Pakistan
Opening of foreign currency account with banks in Pakistan under new
scheme
Guidelines on different risk management
Guidelines on commercial paper
Guidelines on securitization
SBP scheme for agriculture financing
Bank of Punjab
First Women Bank
Sindh Bank
Specialized banks
Industrial Development Bank
Zaria Taraqiati Bank Limited
The Punjab Provincial Cooperative Bank Ltd
Card Issuer
Commercial banks
Askari Bank
Bank Alfalah
Bank AL Habib
Barclays Bank Pakistan
First Women Bank
Habib Bank Limited
Habib Metropolitan Bank
Habib Bank AG Zurich
JS Bank
5
Microfinance banks
Ad vans Pakistan Microfinance Bank
Apnea Microfinance Bank Ltd. (formerly NMFB)
Kashf Microfinance Bank (KMFB)
KhushhaliBank Limited
National Rural Support Programmed Bank Ltd. (NRSP Bank)
Pak-Oman Microfinance Bank Ltd. (POMFB)
Rozgar Microfinance Bank Ltd. (RMFB)
Tameer Microfinance Bank Ltd. (TMFB)
The First Micro Finance Bank Ltd. (FMFB)
The Punjab Provincial Cooperative Bank Ltd
Waseela Microfinance Bank
Islamic Banks
Privatized Banks
Private Banks
Foreign Banks
The Bank of Punjab started functioning with the inauguration of its first branch of 7Egerton Road, Lahore on November 15, 1989. The founder of the bank Mr. Nawaz
Sharif performed the inauguration.
It was given the status of scheduled bank in 1994.There are 284 branches all over
the country and it has given employment to 5500 employees. Branches of this bank
are increasing gradually which is showing that customers are placing confidence and
satisfaction in the services of bank.Actully it made wonderful achievement in very
short period of time. From financial point of view we say that bank is improving itself
very rapidly.
The Bank of Punjab is working as a scheduled bank with its branches in all major
cities of the country. The bank provides all types of banking services such as Deposit
in Local currency, Client Deposits in Foreign currency, Remittances and Advances to
businesses, trade, industry and agriculture. The Bank of Punjab ahs entered into a
new era of science to the nation under the experienced and professional hands of its
management.
The Bank of Punjab has played a vital role in the national economy through
mobilization of untapped local resources, promoting savings and providing funds for
investments.
The Bank of Punjab has played a vital role in the economy through mobilization of
untapped local resources, promoting savings and providing funds for investment.
The Bank of Punjab has the privilege to discharge its responsibilities towards
national prosperity and progress. Within the couple of years of its scheduling, 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 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.
Selected bank
I have selected this bank for my internship. Shortly it is known as BOP and the
branch at which I have done my internship is at Walton road Lahore. In banking
sector each branch has its own unique code and whole working is based on this
code and my branch code is 158.
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VISION STATEMENT
TO BE CUSTOMER FOCUSED BANK WITH SERVICE EXCELLENCE
MISSION STATEMENT
To exceed the expectation of our stakeholders by leveraging our relationship with
the Government of Punjab and delivering a complete range of professional solutions
with a focus on programme driven products and services in the agriculture and
middle tier markets through a motivated team
Our Customers:
Profitability:
Excellence:
In everything we do
Integrity:
Respect:
9
Aasaih Loan
Quick Cash
Car Loan
House Loan
Agriculture financing
Corporate financing
Commission free Remittance
Zarco Exchange Remittances
Collection of utility
Lockers facilit
Account Opening form
Types of Accounts
Current account
Saving Account
Fix Account
Foreign Currency account
Agriculture Schemes
Trade loans
Trade finance is a loan provided to the importers and exporters to make their
transaction effective. This enhances the global business. The Bank of Punjab makes
some trade processing centers to cooperate the exporters and also to the importers
in different cities of Pakistan such as Lahore, Islamabad, Rawalpindi and Karachi.
Commercial finance
Running Finance
Cash Finance
Demand Finance
Earnings of BOP
Bank of Punjab make income From following sources
By investing deposits further in business following the principal of
diversification
By lending money to needy customer keeping in view the full safety
and making sure that money is going into safe hands
Bop also generate revenue by opening of letter of credit that is shortly
is known as L/C.
Bank of Punjab also make revenue from the collection of utility bills as
BOP charge 7 rupee per bill.
Organizational Structure
Chairman
Board of directors
Executive Committee
12
Executive Incharges
Branch Manager
Manager
Operation
Branch Staf
Policy Formation
For policy formation directors meet once in a month.In meeting policies of last month
are usually discussed.If there is need of review, then the directors have right to do
that but collectively.
Management of Bank
13
Corporate strategy
The board of directors adopt vision mission statement and over all coporate strategy
for listed company and also formulate significant policies,having regard to the
materiality,as may be determined it.
My Internship Program
Starting Date:
26 March 2015
Ending Date:
23 June 2015
2 weeks
Clearing Department
2 weeks
Remittance Department
2 weeks
2 weeks
Cheque
An
unconditional
order
in
writing
drawn
on
specied
banker,signed
by
Types of Cheque
There are following types of cheque as.
Bearer Cheque
It is also known as Open cheque. Holder of this cheque can cash this cheque from
bank. We can receive payment of this cheque at cash counter.
Order cheque
This cheque contain the name of particular individual to whom payment will be maid.
Holder of this cheque cannot cash this cheque.
Cross cheque
Cheque whose top left side contain two perrallel lines is called cross cheque.we
cannot receive payment of this cheque from cash counter first we will have to open
account then we can receive payment of this cheque.There are two types of crossing
General Crossing
16
When two parllal lines on the face of cheque are just contain Account payee,&Co,Not
negotiable it is called general Crossing
Special Crossing
When two parallel lines on the face of cheque contain name of banker it is called
special crossing. For special crossing two parallel lines are are not necessary just
name of banker name will convert the crossing in special crossing.Here there is no
fear of making wrong payment. Just banker whose name has written will be able to
receive payment.
Blank Cheque
This cheque just contain signature.No any other content has been filled.we can fili
this cheque according to our own will and can cash.
Mutilated Cheque
Cheque that contain wear and tear. Banker must see that cheque is not mutilated
because if banker will ignore this point he will be liable to this. However mutilation by
accident may be accused if drawer dclare about this fact.
Traveler Cheque
This is a cheque that is used in place of hard currency.These are used when we are
going any where or foreign and we do not want to carry cash with us.then we go to
bank and get cheque equal to amount carry.If it is lost it is re-issued.
Bounce Cheque
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Contents of cheque
Pay
Rupees in words
Rupees in figures
Cheque No
Date
Name of bank on left side of cheque
Signature
Branch code
Cheque NO.
Date
Pay
Rupees
Rs.
Signature
Specimen of cheque
Cash Cheque
If any person want to cash cheque of any other person then very first we will demand
id card copy then original id copy then we match the copy with original id card then
payment is made.
If any one want to cash cheque his own then we will just match signature on cheque
with ss card.
Clearing
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Inward Clearing
When our customer give cheque to any other bank and then that particular bank
send cheques to NIFT then through NIFT we receive our cheque .It is called inward
clearing.
customer and similarly in accounts of all customers if there is amount in all accounts
that particular will deduct amount from accounts of customers
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and send bach device to NIFT regarding that these particular cheques are cleared
,these accounts have amount in accounts then NIFT send this device to our bank
and then we will transfer the amount to our customer account by crediting our head
office account.
Cheque
send to
NIFT
NIFT send
cheque to
branch
whose
cheque is
Other bank
receive
cheque and
see the
following
BOP=Bank of Punjab
158= Branch code
A/C=Account number
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Bank debit
account of
customer,credit
a/c Of NIFT
NIFT Transfer
amount to drawee
bank
BOP cheque
go to other
party
CHQ holder
goes where he
has own
Account
Bank keep
cheque and
make
transection
At evening
Bank send
CHQ to NIFT
NIFT transfer
amount to drawer
bank
BOP=Bank of Punjab
158=Branch code
21
A/C=Account Number
NIFT=Natioal institute of facilities tehnology
Branch Code
The bank of Punjab Walton road Lahore cantt code is 158.Every branch has
its own code for separate identification. Here customer write code of that
branch where he wants to open his account.On right side of form that contain
three attributes are account number, and date must be filled by officer who
open an account
SBP code
Else there is also code of state bank of Pakistan that must be fulfilled by
concerned officer
Balance require to open this account is 500/This account is suitable for salary earner and wage earner etc.
Minimum maintenance balance is 10000/In case balance below this 10000/- 75 rupee per month will be charged
Customer get benefit @ 1.75% per annum.
Balance require to open this account 1000/No fee for maintaining the BBA Account
If BBA Account is Nil for six month then bank can close this account
Customer get profit of @ 2.75% per annum
Currency of Account
Here Customer have to select currency that in which currency customer will
deal because each currency has its own rules and regulation as of foreign
currency.Zakat is exempted on foreign currency account.
Title of account
Here customer has to write title of account and title of account may be
individual partnership or joint company.Actully here will be the name of
customer.
Contact
In this all information of customer is mentioned like mailing address,alternate
address,phone no.mobile number,fax number or E-mail Address and it is very
important part because in specific circumstances bank has to contact with
account holder.
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Category of account
Here customer has to select account which type of account he wants to open.
Category of account may be individual joint or any business account.
Customer has to select these accounts carefully because all these accounts
have their own requirements.
Occupation
Customer has to tick on occupation
Zakat
Zakat is not applicable to current account ,not applicable to account of nonmuslim,foreign nation, or also not applicable on account of foreign currency.
Operational Instruction
Here
customer has to write name who will operate the account.In case
Introducer
In case when any customer wants to open account in our branch,we
will require introduction of any one who is our already account holder.Because in
case any fraud we may ask to introducer.
ATM card
Customer also tick either he wants to take facility of ATM card or not.
E-Banking
Here customer also has to mark either he has to get online banking or not.
Applicant
In this section we record the information of applicant as his name ,father
name,Marital Status,gender,Nationality,CNIC,expiry date,issuing date,source
of fund.
Next of Kin
Here we record the information of that individual with whom bank can contact
else accountholder here we record information as Name Father/Husband
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Additional Information
Additional
information
that
banker
take
is
type
of
customer,Public
Business information
In case business account we will get information as name of business,nature
of business,type of industry,yearly income,or may be NTN number.
Information
Very first we get information of different type as purpose of opening an account,
which type of account you want to open.
Documents
Then we require documents of different types which necessary to open an Account.I
will let you know later that what are these documents.
Opening of Account
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business proof.
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Pension Copy
Bill Copy
Business proof
College id
copy,cheque copy
Filling of Account
opening form
Pension copy
Document
Required
ID copy, Cover
letter,KYC,NAB
Employee letter
Verification of
documents
Account number is
entered in account
opening form
Final verification by
manager
Computer generate
account Number
Account of
customer is opened
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Signature
Four signatures are obtained in boxes and else it we obtained signature on each
page of form.
Stamps
In boxes we paste stamp of Signature Admitted and on page of form we paste
stamp of Signature Verify
Account Closing
One application form is available to help the customer to close his account.
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Remittance
I know how to deal with customer who has come to receive remiitance..Pakistani
who sent money from abroad he also give a code to Pakistani receipiant.then
Pakistani recipient comes to bank to get money.
we will have software that will be separate for Xpress money and separate for
westeron.then we write code in conserned software if the money has come fom
broad then a form will get open which contain the detail of sender and receipiant
then we write recepiant CNIC no on form then ask how much cash has sent your
relative then a button is pressed at right side at bottom then a form get open. We will
get print of that form.
We attach id card copy of that customer and also see original id card and paste
stemp ORIGIONAL SEEN AND VERIFY on form.
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Then on right side we paste our sign and on left side we get sign of customer then 2
sign more are obtained on the back side of print and say to customer,go to cash
counter and receive your money.
Pension
When any one come to receive pension we just see pension book make entry
in computer, we also make entry on pension book. Lastly we fill cheque of that
customer and refer toward cash counter.
Cheque book
To withdraw cash back from his account, we need cheque. Cheque Book may be
contain of 25 cheque,50 cheque 75 cheque,100 cheques.There will be different
charges for different cheque books..
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Sign of two
authorized
officer
Cheque No.after
issue of cheque
book
Date
2 sin of
customer
Account No
Title of account
Address
31
# of leaves
Name
BOP =
Bank of Punjab
158 =
Branch code
A/C
NIFT =
Account number
National institute of facilities Technology
BOP=Bank of Punjab
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Important Information
In case to cancel the leaves of old cheque book and issue new cheque book whole
process is done.
Terms in Remittance
There are following terms
Online Transfer
Call Deposit
Pay Order
Demand Draft
Online Transfer
For transferring of amount
outside the city then online transfer is preferable because it require less time. There
is a remittance form..Sender of amount is called benefactorand receiver is called
beneficiary.On form following information is written
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Name of benefactor
Obviously name of benefactor is written on form
Date of remittance
Date will provide us information regarding transaction day.
Account No of benefactor
It is much necessary in case when amount is transferred from account.
Amount in words and figure
Amount in figure and words should write and should match to avoid any mistake.
Branch code
Branch code is much necessary for information that from which branch money is
being trasfered.
Customer branch name
Here we will write our branch name.
Telephone number
Here benefactor will also write his cell number so that in case any problem we may
able to call benefactor.
Same Information is put on form regarding beneficiary
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Authentication
by other officer
by signing on
form
Customer
Filling of
online
deposite form
Back to officer
Amount
deposite at
Enter other
branch code
and account
number of
Form
presented to
Entry is made
and transition
number is given
Posting by
officer
Other officer
authenticate the
entry
Amount is
transferred in
account of
Pay Order
It is used to make payment within city Eg I purchase a car from tyota for rupees
2000000/- and I give cheque to Tyota they say give us pay order.
Then we will o to bank we fill online deposite slipe and deposite 2000000/- in bank
then bank make pay order and giv us and
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Charges
Rs 50 for account holder
Issuance of duplicate
Payment Order
The Bank of Punjab
Payment order
NO.2012/00241
Walton Road
Branch
Issued NO.25/7/2012
Rs=20,
00,000/-
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Customer
Cashier
collect the
amount and
return the
form
Preent the
form to
officer and
ask for the
pay order
Posting by first
officer
Demand Draft
It is used to make payment outside city. Normall to pay fee etc. Eg.we have to pay
fee in Faisalabad .Here we will go to bank and receive DD by filling online deposite
slip and depositing fee.then we send this DD to institute by post where we have to
pay fee.before DD is received by institute ,we will send Advice to our main branch in
Faisalabad and then that institute will cash the DD from our main branch.
37
Customer
Posting by
officer
Authentication
by other officer
Filling of DD
form
Officer Prints
the DD
Pay DD
amount at
cash counter
DD is ready and
is given to
customer
Cashier collect
amount and
return form
Present to
officer and
ask for DD
Date 14/7/2013
No:00420448
Call Deposit
Receipt
The bank of
Punjab Walton
Road Lahore
ATM card
ATM Card stands for Automated teller Machine. This is one of the products of the
bank of Punjab in order to provide convenient to customer after ban timing. He/she
can withdraw money from his account using this card.
Bank of Punjab deduct charges Rs.316 for issuance of card to customer and same
amount is deducted annually.
In this step all information about about customer is sent to IT department
After it IT department start its process and then send card to BOP branch within one
week which require it/
Then card is issued to customer
ATM charges
deducted 316
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Within 10
days card
is sent by
IT
departmen
t
Issue card
to customer
Send information
to IT department
Activate
card by
calling on
universal
number
Process by IT
Department
Day End
Last of the day date is stored in separate plates and is also sent to IT department.
So that in case of any problem in the morning we may recover this date from our
plates or IT department
Ratio analysis
Liquidity Ratios
1. Current Ratio=Current Assets /current Liabilities
2011
2012
41
126773515/238747269
.53
162989034/267556490
.60
Graphical Representation
current Ratio
0.62
0.6
0.58
0.56
0.54
0.52
0.5
0.48
0.6
current Ratio
Linear (current Ratio)
0.53
2011
2012
Interpretation
The current ratio should ideally be 2:1.It mean for every 1 rupee liability there should
be 2 rupee. Here the situation of bank of Punjab is that in 2011 the bank of Punjab
had .53 rupee for every one rupee liability while in 2012 the bank had .60 rupee
liability for 1 rupee liability. Here what the data is showing the bank of Punjab is
moving toward betterment.
2011
20305440/238747269
.085
2012
20399421/267556490
.076
Graphical Representation
42
0.09
0.08
0.08
Acid Test Ratio
0.08
0.08
0.08
0.08
0.07
0.07
0.07
2011
2012
Interpretation
This ratio is calculated to see most liquidity position of bank.Ideally it must be 1:1.
Here the liquidity of Punjab bank in 2011 was .085 but in 2012 liquidity was .
076.Here the data has shown that sign of liquidity is not positive.Liquidity has
decreased.
2011
20305440/238747269
.085
2012
20399421/267556490
.076
Graphical Representation
43
0.09
0.08
0.08
0.08
0.08
0.08
0.08
0.07
0.07
0.07
2011
absolute liquid ratio
2012
Linear (absolute liquid ratio)
Interpretation
Here the standard is ratio must be of .5:1.but the ratio of Punjab bank in 2011 was .
08:1 and in 2012 ratio was .07:1.Data is showing that absolute ratio of Punjab bank
has decreased in 2012 that is not good sign.
2011
388260/20685011
1.88%
2012
2143106/24666024
8.69%
Graphical Representation
44
9.00%
8.00%
7.00%
6.00%
5.00%
4.00%
3.00%
1.88%
2.00%
1.00%
0.00%
2011
2012
Interpretation
Interest income in 2011 was 1.88% and 2012 was 8.69%.Bank has improved its
efficiency and interest earned % has increased in 2012 which is positive sign from
the side of bank.
2012
319739551/332111054
.9617
.962748
45
Graphical representation
Debt Ratio
0.96
0.96
0.96
0.96
Debt Ratio
Linear (Debt Ratio)
0.96
0.96
0.96
0.96
0.96
2011
2012
Interpretation
In case banks if debt ratio is up to 90 % then there is no problem .If debt ratio is
above 90% then situation will be alarming.If we tal about bank of Punjab it was
already in alarming siruation in 2011 with 96% debt ratio and in 2012 debt ratio has
increasd to some extent thats not good.
2011
7202930/280997531
.0256
2012
6475407/332111054
.0195
Graphical Representation
46
Equity Ratio
0.03
0.03
0.03
0.02
0.02
Equity Ratio
Linear (Equity Ratio)
0.02
0.01
0.01
0
2011
2012
Interpretation
Equity in 2011 was .0256 and in 2012 was .0195 .Data is showing that equity of
Punjab bank in 2012 has decreased and risk has increased. Decrease in debt and
increase in equity give positive sign.
2011
24963566/7202930
3.46
2012
44683000/10733000
4.16
Graphical Representation
47
4.5
4.16
4
3.5
3.46
3
2.5
1.5
1
0.5
0
2011
2012
Interpretation
Debt equity ratio in 2011 was 3.46 and this ratio was 4.16 in 2012.Data is showing
increase in debt and decrease in Equity. Because of increase in debt risk has
increased and decrease in equity is not showing a positive movement of bank.
2011
4234028/3711281
1.14
2012
5962241/4558349
1.30
Graphical Representation
48
1.3
1.25
1.2
1.15
1.14
1.1
1.05
2011
Category 2
Interpretation
This ratio shows either company will be to pay interest from its profit or not. This ratio
in 2011 was 1.14 but this ratio in 2012 was 1.30.Data is showing that capacity to pay
interest in 2012 has increased and it is a positive signal from the side of Punjab
bank.
Profitability Ratios
1. Gross profit Margin=gross profit /income
2011
522747000/4234028000
.12
2012
1403892/5962241
.23
Graphical Representation
49
0.23
0.2
Gross profit Margin
0.15
0.12
0.1
0.05
0
2011
2012
interpretation
More this ratio more will be better for bank. In 2011 this ratio was .12 and in 2012
this ratio was .23.Data is showing gross profit in 2011 was low but has increased in
2012.This increase is showing positive movement of bank of Punjab.
2011
347973/4234028
.082
2012
1633841/5962241
.27
Graphical Representation
50
0.27
0.25
0.2
0.15
0.1
0.08
0.05
0
2011
2012
Interpretation
More this ratio more will be better will be for bank. This ratio in 2011 was .082 and in
2012 was .27.Data is showing increase in net profit margin that is showing financial
improvement of bank of Punjab.
2011
237896700/127129501
53.44%
2012
149605002/266055781
56.23%
Graphical Representation
51
56.23%
56.00%
55.50%
55.00%
54.50%
Linear (Advances to
Deposit ratio)
54.00%
53.50%
53.44%
53.00%
52.50%
52.00%
2011
2012
Interpretation
In 2011 this ratio was 53.44% but in 2012
showing that deposits has increased and advances has also increased that is a
favorable for bank.
2011
237896700/7202930
33.02 times
2012
266055781/6475407
41.087 times
52
Graphical representation
Deposites to SHE
45
41.09
40
35
33.02
30
Deposites to SHE
25
20
15
10
5
0
2011
2012
Interpretation
In 2011 this ratio was 33.02 and in 2012 was 41.08.which shows better position of
bank to pay equity and increase in this ratio is favorable for bank.
2011
347973/528797
.66
2012
1633841/528797
3.089
Graphical representation
53
3.09
3
2.5
Earning per share
2
1.5
1
0.66
0.5
0
2011
2012
Interpretation
More the EPS more the financial worth of bank.EPS of bank of Punjab in 2011 was .
66 and in 2012 EPS was 3.089.Data is showing considerable increase in EPS which
is showing the efficient operation of bank.
2011
347973/280997531
.0012
2012
1633841/332111054
.00491
Graphical representation
54
0.01
0
0
0
0
0
2011
2012
Interpretation
More this ratio more will be better for bank.Return on total Asset in 2011 was low but
in 2012 has icreased which is showing improvement of bank of Punjab.
2011
347973/5287974
.0658
2012
1633841/5287974
.3089
Graphical representation
55
0.31
0.3
0.25
0.2
0.15
0.1
0.07
0.05
0
2011
2012
Interpretation
More this ratio better will be owners. This ratio was .065 in 2011 and in 2012 was .
3089.Data is showing that return was low in 2011 but has increased in 2012 that is
positive for Punjab banks owners.
Market Ratio
8. P/E Ratio= Market price/Earnings per share
2011
5.412/.66
8.20
2012
7.41/3.089
2.4
Graphical Representation
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8.2
8
7
6
4
3
2.4
2
1
0
2011
2012
Interpretation
More this ratio more the confidence level of investors. Confidence in sense that they
will say company will perform good in future. As P/E ratio of Punjab bank was 8.2 in
2011 and in 2012 was 2.4.Data is showing decrease in P/E ratio that will cause
decrease in confidence level of investors.
2011
5.412/10
.54
2012
7.41/10
.74
Graphical Representation
57
0.74
0.7
0.6
0.54
Market book Ratio
0.5
0.4
0.3
0.2
0.1
0
2011
2012
Interpretation
When the investors perceive positively any bank or company then investor is willing
to pay more than its book value. In case negative perception about company or bank
they will try to pay low than its book value. As in 2011 investors were willing to pay .
54 but after it because of its efficiency in 2012 they were willing to pay .74
2011
7202930/528797
14
2012
6475407/528797
12.24
Graphical Representation
58
14
13.5
13
12.5
12.24
12
11.5
11
2011
2012
Interpretation
More the book value ratio more the better for company. As book value ratio of Punjab
bank was 14 in 2011 and in 2012 was 12.24.Data is showing downward position of
bank of Punjab because of decrease in book value ratio of Bank.
SWOT ANALYSIS
Strengths
All we know that The bank of Punjab is supported by government of Punjab
which cause building of trust of clients on bank
It has been awarded with AA- for long term rating and A1+ for short term
rating. It has been awarded to bank because of its sound financial
results.Long term means here there is low credit risk and it has strong
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financial capacity to repay long term loan.Short term mean it can fulfill its short
term obligation very well.
It has large network of its branches.There are 284 branches in all over the
Pakistan.
The bank of Punjab has computerize banking system
The bank of Punjab provides online facilities to its customers.If any customer
want to see its statement at home he can use online facility of bank of Punjab.
There are many training center of Punjab bank to train its customer.There are
different training session are held for its old as well new employees.
It is bringing much efficiency in its operations.It is growing itself very rapidly.
Because of which it is getting improve its financial position day by day.
BOP has signed agreement with government of Punjab to provide facility
regarding to SME financing to the engineering firms of government of punja
for managing infrastructure.
The Punjab bank has been awarded among top six banks in Pakistan
regarding remittance.
Bank of Punjab is doing very well to improve its performance through Clint
focused policies to maximize value and satisfaction.
Wide range of agriculture loan scheme as compare to other province bank
It is managing the chief minister self employment scheme for unemployed
educated youth.
It is preparing different policies to exceed the customer expectatios.
BOP follow rules and regulation very strictly which received from Punjab
government.so it make the environment in disciplined
Because of name Punjab many people prefer to deposit money in this bank.
Weaknesses
Bank of Punjab has very few branches out of province Punjab but other bank
has branches in all other provinces as in Punjab province.thats why all other
bank has competitive edge over Punjab bank in all other provinces.
As pujab bank has numerous branches in province Punjab ,it is much difficult
to manage these branches further it increases the cost of operation.
Employees of bank of Punjab are not satisfied with pay scale increments and
permotion criteria as compared to other banks.
The Work Responsibilities are broken into small parts.
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Opportunities
As economy is growing There is more investment demand in Pakistan.Banks
can make considerable investment ,earning much profit and in this way they
can enhance their business.
Import and export is increasing It should increase its corporate branches to
get benefit from this trade.
SME require more fund to enhance its infrastructure to imorove its
quality.Banks are the main source of this funding.They can lend them and
much profit.
Because of large amount of deposit of government it has
opportunity to
Threats
Punjab bank has major deposite of government of punajb.With the change of
government policies ti may affect the bank
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Entrance of foreign bank in competition with local bank is major threat for
bank of Punjab.
The state bank often impose various restrictions on banks.Therefore none of
bank is independent in policy making and can lounch any product without
permission of state bank of Pakistan.
Government lagislation is also the major threat to the bank of Punjab.
Political factors more influence the bank of Punjab.
Inflation is big threat for BOP,It leads to reduce the deposite by reducing
the consumer as well as working condition
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Conclusion
I conclude that Bank of Punjab is the one best bank in all local banks.It is improving
itself very rapidly.It is bringing much efficiency in its operations.Because of having
numerous branches in province Punjab it has competitive edge over all other
banks.Here I also say that There are also some negative points in this bank that
are ,it has no unique product line it is offering product which are also being offered by
other banks.One point more that It has major accounts of government .so if because
of any reason if government go down then there will also be the probability to go
down for the Bank of Punjab.Because of its continouse imorovement any one can
join this bank for his long term career confidently.
I have learned many things related to banking sector during my internship.Staff of my
branch was very cooperative and supportive.whenever Iasked question they
supported me.They answered me very politely and
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Recommendations
64
65
References
Amin
Branch Manager
03334407471
Khalid Latif
Manager Operation
03214233911
Mehmood
03004202255
Ali
Clearing officer
03004487015
Sheheryar
Remittance officer
03224609938
Yasir
Pension officer
03317276804
www.bop.com.pk
History
Annual Report
66