Chapter No 01: 1.1. Executive Summary

ZARAI TARQATI BANK LIMITED
Chapter No 01
INTRODUCTION
1.1. EXECUTIVE SUMMARY
The basic purpose of this internship report was to fulfill the degree requirement and to build
my own work capacity in official environment. I made this report after working in
ZaraiTaraqiati Bank Limited. ZTBL was incorporated as a public limited company in 2002
under Companies Ordinance, 1984. The bank provides agriculture credit and banking
services to farmers across the country, it is contributing its part for the development of the
country. The bank continues to remain the largest public-sector agriculture development
financial institution in the country. ZTBL has a limited banking license which restricts the
institution from undertaking broad range of banking business. The bank has applied for
commercial banking license to the State Bank of Pakistan (SBP). The bank serves around half
a million clients annually and has over one million accumulated account holders and a wide
network of 32 Zonal Offices and 452 branches in the country as on 31 December 2016. It is
concluded that according to SWOT analysis ZTBL is filling the gap of employee skill
building through staff college and has a good attention towards employees and customers. It
is suggested that bank must pay attention towards agricultural production declining because
of some natural and unnatural causes, ZTBL should start the commercial banking practices
and its specialization together.
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1.2. INTRODUCTION:
The ZTBL which stand for Zarai Tarqaiti Bank Limited (formerly known as ADBP-
Agricultural Development Bank of Pakistan) is the largest public sector Specialized financial
development institution in Pakistan. Zarai Taraqiati Bank Limited (ZTBL) was incorporated
as a public limited company in 2002 under Companies Ordinance, 1984. The bank provides
agriculture credit and banking services to farmers across the country, banks basic purpose is
to empower agriculture through filling credit needs of formers for the production. The bank
continues to remain the largest public-sector agriculture development financial institution in
the country. ZTBL has a limited banking license which restricts the institution from
undertaking broad range of banking business. The bank has applied for commercial banking
license to the State Bank of Pakistan (SBP), however, no decision has yet been taken with
regards to the same.
The bank serves around half a million clients annually and has over one million accumulated
account holders and a wide network of 32 Zonal Offices, 9 Audit Zones and 452 branches in
the country as on 31 December 2016. Around 54% of the branches are located in Punjab
followed by Sindh (21%), KPK (14%), Baluchistan (7%), AJK (3%) and GBC (2%). ZTBL is
also providing branch less banking facility to its customers through Upaisa, a joint effort by
ZTBL and U Microfinance Bank Limited.
Zarai Taraqiati Bank Limited (ZTBL) erstwhile Agricultural Development Bank of Pakistan
(ADBP) is the premier financial institution geared towards the development of agriculture
sector through provision of financial services and technical know-how. The restructuring of
former ADBP is being carried out with the aim to uplift the agriculture and rural sector by
raising farm productivity, streamlining the institutional credit and increasing income
generating capacity of the farming community.
The main purpose of the Bank is to provide sustainable rural finance and services particularly
to small farmers and low-income households to strengthen the rural and agricultural sector,
mitigate poverty, capital market and investment activities and other banking business.
ZTBL is promoting agriculture and serving their customers through different types of
accounts, agriculture loan schemes and machinery schemes in which they provide all type of
machines on a cheap interest. Now a days ZTBL is getting a good image in agriculture
market.
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1.3. PUROPOSE OF STUDY:
The purpose of this study is to fulfill my academic requirement which is that during the
semester I have to go to an organization for work and this task is as a subject, whose purpose
is to enable the candidate for organizational work and to know how official work is to be
done, how to survive within an organization when you go firstly, how they work in a
systematic way, how to co-ordinate with employees and how the employees communicate to
his senior or superior.
1.4. RESEARCH METHODOLOGY:
After internship in ZTBL branch office in Badin Sindh. The most important task was to
collect as much as information about ZTBL Bank in order to have a full productive report.
For the collection of information and data. I used two methods for collecting of data for the
preparation of internship report such as primary and secondary collection methods, which are
given as under.
1.4.1. Primary Data:


Lectures given by trainer of ZTBL Badin

Working and general discussion with bank officers.

Personal Observations
1.4.2. Secondary Data:
Which is also called as historical data, the data was collected through following sources.

Official Website of ZTBL

Wikipedia and internet

Annual Reports of ZBTL

Business journals

Internship reports
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1.5. LIMITATION OF THE STUDY
Limitations which I had faced during internship at ZTBL Badin A branch.


Limited short time for internship of 6 week which is too short to understand the whole
organization.

The internship report is for academic purpose also its certificate none of any my
professional will rely on this.
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Chapter No.02
OVERVIEW OF BANKING SECTOR & ZTBL
2.1. BANKING:
Human left the need of when they used the money as a medium of exchange.
A financial institution which deals with money and credit, it accepts deposit from individuals,
firms and companies, give them low interest rate while it charges high interest rate that needs
the credit.
2.2. HISTORY OF BANKING IN PAKISTAN:
2.2.1. Before independence:
Most of banking business was in the hands of Hindus of British people and only two banks
were in the hands of Muslims and one bank was already in Pakistan.
There were 19 non-Indian foreign banks in Pakistan before independence whose policies and
operations were controlled by their head offices abroad. These banks were engaged in export
of crops from Pakistan.
2.2.2 Banks established just few months before independence and after shifted in
Pakistan

Habib Bank was established in early 1947 in Bombay (India).

Muslim Commercial Bank was established in July 1947 in Calcutta (India).

Australian Bank renamed Allied Bank was established in 1942 Lahore (Pakistan).
2.2.3 Phases of Banking Sector in Pakistan After Independence
Phase 1. 1947 to 1974 Establishment of commercial banking system.
Phase 2. 1974 to 1979 Nationalization of banks.
Phase 3. 1979 to 1991 Islamisation process.
Phase 4. 1991 to 2000 Deregulation process.
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2.2.3.1 1947 to 1974 Establishment of commercial banking system.
This was first phase of Pakistan’s commercial banking system. In subcontinent, Reserve
Bank of India was central bank. The bank of India closed down most of its offices in
Pakistan, which had been working as the agent of Reserve Bank of India was not willing to
purchase even token amount of the government of Pakistan. Securities and Indian reserve
bank’s issued notes were not marketable declared by India government. The Reserve Bank of
India was hardly of any help. It refused to help the govt. of Pakistan so salaries and other
obligations did not fulfill. After independence of Pakistan 1947, on December, 1948 British
government decided to divide the reserves of India central bank 30% reserves for Pakistan
and 70% reserves for India. After taking this reserve.
In May 1948 “Muhammed Ali Jinnah” immediately established State Bank of Pakistan.
After one year in November 1949, National Bank of Pakistan was established in Dacca
(East Pakistan). The main purpose was to act as an agent of State Bank of Pakistan.
Number of more banks were established according to the need of a country with the passage
of time.
2.2.3.2 1974-79 Nationalization of Banks
In Bhutto government nationalized the banking system. Thus, through the Nationalization
Bank Act. 1974, SBP and all commercial banks in Pakistan and carrying on business in or
outside the country were brought under the government ownership with effect from 1974.
The ownership and management of all Pakistan banks stood transferred and rested in the
federal government. The chairman, director and chief executive of various banks were moved
from their offices other than those appointed by the federal government and the state bank. At
the time of nationalization, there were 14 Pakistani commercial banks with 3323 offices
overall Pakistan and 74 offices in foreign countries.
A Pakistani banking council was established for nationalized banks to co-ordinate their
activities. The Pakistani council prepared a scheme for the recognition of banks. This scheme
was notified in 1974, according to it small banks combined with big banks.
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2.2.3.3 1979-91 Islamisation Process
Interest was an important target in this phase. The Islamic bank was made and it receive
deposit without guaranteeing any return. The Islamic bank cannot finance the project of an
investor, the bank will have to be a partner in the project.
2.2.3.4. 1991-2000 Privatization and Deregulation Process
In 1991, the government of Prime Minister Mr. Nawaz Sharif was not fully satisfied with the
performance of nationalized. He took step towards privatization of banks, industries, So
Pakistani banking sector is categories as State Bank of Pakistan, National Scheduled Banks,
Private Scheduled Banks, Foreign Banks, Investment Banks. Specialized Banks.
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2.3. ZTBL PROFILE
2.3.1. President's Message
I welcome you for visiting our virtual home, the “website of Zarai Taraqiati Bank Limited
(ZTBL)” which is a useful source of information on variety of subjects. Let me introduce that
I have joined ZTBL on 30th April 2014 as a President & CEO of this largest Bank in
agriculture sector, carrying an extensive experience of more than 30 years in the national and
international banking. Our role at ZTBL is to augment national economic interest by serving
the agriculturists of the country & play a leading role for sustainable growth through the
network of 436 branches with the well trained 1303 Mobile Credit Officers across the
country.
As our site, we are constantly endeavoring to modernize the dashboard which can reflect the
outstanding quality and excellence. We have designed the website to provide more interactive
and user friendly online experience for our visitors.
Our online visitors can rightly expect the broad range of information regarding the services
we offer in our physical environment. Those who are already familiar with the site will
discover that every visit creates a new excitement, a range of business opportunities and
guidelines through innovative products in agriculture sector. I am confident that visitors will
find our redesigned home quite enriching in finding out & learning everything one needs to
know about ZaraiTaraqiati Bank Limited (ZTBL), ranging from its corporate structure,
business processes & product offerings, besides whole lot of reading materials and data on
agricultural sector of Pakistan.
We will appreciate if you contact us or, is there anything you think, we need to do to enhance
the utility of the website & the work we are doing.
In the end if you are looking for any investment opportunity in the agri. sector or having
some agri. business produce, ZTBL would more than happy, to join hands with you to further
handle your financial & technical needs.
Last but not least, I would never see what has been done, but only see what remains to be
done.
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2.3.2. Brief on ZTBL:
The Bank's registered and principal office is situated at 1-Faisal Avenue (Zero Point),
Islamabad. Zarai Taraqiati Bank Limited (ZTBL) known as ADBP bank of Pakistan,
incorporated as a public limited company in 2002 under Companies Ordinance, 1984. The
bank provides agriculture credit and banking services to farmers to uplift the agriculture. The
bank is having around half a million clients annually and has over one million accumulated
account holders and a wide network of 32 Zonal Offices, 9 Audit Zones and 452 branches in
the country as on 31 December 2016. The bank has applied for commercial banking license
to the State Bank of Pakistan (SBP), however, no decision has yet been taken with regards to
the same.
The Bank is constantly striving to serve its clientele` with increased efficiency and
effectiveness. In this pursuit, several financial products and delivery mechanisms such as
Sada Bahar Scheme, Awaami Zarai Scheme and Kissan Dost Scheme under Supervised
Agricultural Credit System, have been devised and introduced over the years in the entire
country. Recently developed products include Asan Qarza, Khawateen Rozgar,Shamsi
Tawanai& Tawanai Bachat Schemes.
2.3.3. History of ZTBL:
ZTBL was incorporated as a Public Limited Company on 14th December, 2002 through
repeal of ADB Ordinance of 1961. Thereby transforming the bank as a corporate entity to
serve as R.F.I
The new corporate structure redefines the bank's status as a public limited company registered
under companies Ordinance'1984 with an independent Board of Directors which aims at
ensuring good governance, autonomy, delivering high quality
ZTBL is a key R.F.I of Pakistan providing affordable, rural and agriculture financial/non-
financial services to the rural Pakistan, comprising 68 % of the total population. The Bank
through a country-wide network of 440 branches is serving around half a million clients
annually and over one million accumulated account holders with the average loan size of
around Rs.162331 serving 68%, 29% & 3 % of subsistence, economic and large growers
respectively.
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The total assets of the Bank stand at Rs.123 billion with authorized capital of Rs.25 billion as
of 31.12.2011, with a nation-wide working strength comprises 5789 employees. The share of
ZTBL in total national institutional agricultural credit outstanding is 40% as on 30.06.2013.
2.3.4. ZTBL Vision:
Dedicated to serve the needs of the farming community, by delivering financial products and
technical services on a competitive and sustainable basis, in a convenient, efficient and
professional manner, leading to success of the Bank and the farmers.
2.3.5. ZTBL Mission:
To play effective role in the promotion of economic growth, by enhancing the availability of
credit to the agriculture sector, through reliable access to sustainable financing, special
lending programs, technical assistance, and other products & services, and to promote career
development opportunities for increasing professionalism and technical proficiencies of
employees.
2.3.6. Corporate Objectives:


Develop and operate as a financially and operationally sustainable R.F.I of the country.

Assist rural community, particularly the small farmers, in raising their productivity and
income levels through timely delivery of credit, advisory and ancillary services.

Build ZTBL's image as a proactive, client friendly, financially & operationally sustainable
with indigenous product deployment.

Establish and provide backward and forward linkages to strengthen agri. value added
commodity chains.

Engage in public - private and wholesale - retail partnership to deepen outreach and
reduce operating cost.

To function as a rural commercial bank to mobilize rural capital formation and to
commercialize the agri. sector by delivering the true value of credit to the client. Provide
a wide range of risk insurance products to its clients.
Open up its venues of operation to Domestic & International Banking Industry to avail
comparative advantages.
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2.3.7. Functions:

Identify, develop and impart best possible training & development innovative solutions.

Assess training & development needs of all employees in the Organization.

Ensure that the Bank possess trainers who are adequately trained to design, deliver in
accordance with the training & development programs.

Establish an environment for trainees conducive to learning.

Liaise with all major training agencies, trainers & vendors to the Bank’s advantage.

Overall responsibility of implementation of HR policies and programs in areas of
training, development and career planning.

Obtain feedback on various HR policies, procedures and programs to recommend
improvements.

Evaluate, propose nominations for Overseas training programs through International
Banking Institutes.

Plan, arrange and conduct induction courses for new inductees, at all levels.

Arrange internships for students of HEC recognized Universities, in the field and at Head
Office.

Process and finalize Employees Education requests to encourage the Employee’s to
improve their academic / professional qualification not only for their career growth but
also to prepare the Human Resource of the bank to meet the future challenges on self-
sustainable basis.
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2.3.8. BOARD OF DIRECTORS (ZTBL)
DESIGNATION NAME
Chairman Syed Yawar Ali
President Syed Talat Mahmood
Director Mr. Zahid Idris Mufti
Director Mr. Abdul Ghafoor Mirza
Director Mohammad Tanvir Butt

Company Secretary Mr. Muazam Ali
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2.3.9. ORGANIZATIONAL STRUCTURE
Board of
Directors
President
Committees of
ZTBL
Board Management
HRM Risk Information Audit

Committee Assets Liabilities Executive
Management Technology Committee
Management Coordination
Committee Committee Committee Committee
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2.3.10. ZONES AND BRANCHES:
In public sector, the ZTBL is largest financial institution with a wide network of 32 zonal
offices and 438 branches in Pakistan. The network of ZTBL Head Office is given as under.
S.NO Provinces Zonal Offices Branches

1 Sindh 12 159
2 Punjab 6 89
3 N.W.F.P 4 62
4 Balochistan 5 32
5 Azad Kashmir - 7
6 Federally Administrated Northern Areas - 5
27 354
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2.4. PRODUCTS & SERVICES OF ZTBL
2.4.1. BANK ACCOUNTS:

2.4.1.1. Current Account
PLS- Saving Account
Business Deposit Account (Special Deposit A/C)
Rozana Bachat Account (Special Deposit A/C)
Basic Banking Account
PLS- Term Deposit
Zarai Munafa Term Deposit Certificate (ZMTDC)
Musaqbil Mehfooz
Zarai Term Deposit Certificate (ZTDC)
MINFA Revolving Fund Deposit A/C (MRFDA)
MINFA Special Saving Deposit A/C (MSSDA)
ZTBL Junior Account (ZJA)
ZTBL Senior Citizen's Account (ZSCA)
2.4.2. AGRICULTURE LOAN SCHEMES:
Production Loan Schemes
Awami Zarai Scheme (Farm Credit)
Kissan Dost Scheme
Sada Bahar Scheme (SBS)
Awami Zarai Scheme (N. farm Credit)
SBP one window Op. Scheme
Govt of Punjab Markup Free Agriculture E- Credit Scheme
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2.4.2.1 Loan Schemes of ZTBL (Farmers)
2.4.2.1.1 Short Term Loans
Short term loans are loans for shorter period of less than a year. It includes, crop production
working capital loans recoverable in lump sum commencing after the harvest /marketing of
respective crops and within maximum period of 12 months.
2.4.2.1.2. Medium Term Loans

Medium term loans are for a period of more than a year but less than 5 years. It includes dairy
farming and livestock etc. the installments of these loans are paid able in quarterly or half
year basis.
2.4.2.1.3. Long Term Loans

Long term loans are for a period of more than 5 years. These are development loans which
require large amount and also need some time to show its result in the shape of better
production. It includes loans for tractor, agricultural machinery poultry farming go downs and
orchid in yearly/ half yearly installments within maximum period of 8 years.
2.4.2.2. Development Loan Scheme

Financing for Hay Packing
Financing to Service Provider/Crop Production Companies
Warehouse Receipt Financing Scheme
Camel Rearing Scheme
Agriculture Financing Scheme (Cut: Flower)
Khawateen Rozgar Scheme
Shamsi Tawanai Scheme (Solar Pumpr)
Tawanai Bachat Scheme (Biogas Unit)
Tahfuz-e-Samar Scheme (Veg & Fruits)
Soghat-e-Shireen Scheme (Gurr Making)
Scheme for Gilgit Balochistan
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Tahfuz -e-Ajnas scheme
Tabacco Barn Financing Scheme
Financing Package for Karachi
Special Product Milk Chilling Unit
Khushk Ratab Scheme (Chuhara)
Red Meat Scheme
Rural Development Scheme
Asaan Qarza Scheme
2.4.2.3. Other Schemes
Crop Loan Insurance Scheme
Model Village Establishment
NAVTTC Trained Rural Youth as Service Provider
2.4.3. SOFTWARE LIST
Official Software List
ENB - Electronic News Board (Intranet)
SDMS - Security Document Management System
ICRMS- Internal Credit Risk Management System
NIVS- National Identity Verifications System
RRIS- Regulatory Reporting Information System
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2.4.4. DEPOSIT SCHEMES IN ZBTL
Current Account
PLS-Saving Account
Business deposit Account (Special Deposit A/C)
RozaanaBachat A/C (Special deposit A/C)
Basic Banking A/C
PLS-Term Deposit (slab rates per circular)
ZaraiMunafa Term Deposit Certificate (ZMTDC)
MUSTAQBIL MEHFOOZ A/C
ZARAI TERM DEPOSIT CERTIFICATE (ZTDC)
ZTBL Junior Account (ZJA)
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2.4.5. TYPES OF ACCOUNTS
Types of Deposits Rate of Return Terms & Conditions

CURRENT A/C NIL 1. Initial deposit is Rs.200/-
2. Un-remunerative charges @
Rs.50/- pm shall be deducted on half
yearly basis.
PLS-SAVING A/C 3.75 % pa 1. No initial deposit.

(Regular Saving A/c) 2. Max. 8 debit transactions during
the month are allowed for
calculation of profit.
3. Profit shall be calculated on the
basis of average balance during the
month.
4. Profit shall be credited to a/c on
half yearly basis.
BUSINESS DEPOSIT A/C 3.75% pa 1. Initial deposit is Rs. 10,000/-

(Special deposit A/C) 2. Profit shall be calculated on the
basis of daily product.
3. No limit of withdrawals.
4. Profit shall be credited into
account on half yearly basis.
ROZANABACHAT A/C 4.25% to 5.25% pa 1. Initial deposit is Rs. 10,000/-

(Special deposit A/C) (slabs placed) 2. No limits of withdrawals.
3. Profit shall be calculated into a/c
on Quarterly basis
4. Two DDs & two POs shall be
issued free of charge during the
month if average balance of Rs.2,
00,000/- maintained.
BASIC BANKING A/C NIL 1. Min. initial balance is Rs.1000/-

2. It is non-remunerative a/c.
3. Max. two deposit & two chaining
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withdrawals during a month are
free of charge
PLS-TERM DEPOSIT 4.15% TO 5.75% 1. Min. initial balance is Rs.1000/-.
(slab rates per circular) (slab placed) 2. Minimum holding is 3 months.
3. PLS saving a/c rate shall be
applied in case of premature
encashment & after maturity.
4. Request of roll over shall be made
in sufficient time before its maturity
otherwise it will be transferred to
TDR Matured a/c.
ZARAI MUNAFA TERM 5.75% 1. Initial deposit if 0.100 million.

DEPOSIT CERTIFICATE 2. Scheme is restricted for Bank
(ZMTDC) employees & their relatives.
3. Profit shall be paid at maturity.
4. Premature encashment OR after
maturity PLS-Saving a/c rate shall
be applied.
MUSTAQBIL MEHFOOZ 4.75% 1. Short term deposit scheme for a

A/C fixed period of 3 and 6 months.
2. Min. deposit is Rs. 50,000/-.
3. In case of premature encashment
OR after maturity PLS-saving a/c
rate shall be applied.
ZARAI TERM DEPOSIT 3.75 % To 4.85 % 1. Before 6 months

CERTIFICATE (ZTDC) pa 2. 6 month & before 12 months.
3. 12 month & before 24 months
4. 24 month & before 36 months.
ZTBL Junior Account Prevailing PLS 1. Initial deposit of Rs. 1000/ - after
(ZJA) Savings completing all pre-requisites
Account Rate stipulated by SBP/Banks procedure
in vogue.
2. Profit calculation on daily
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product basis to be credited in the
account on quarterly basis.
3. Account to be opened in the name
of Minor and operated by
Parent/Guardian.
4. Single debit transaction restricted
to Rs. 50,000/-
5. Free 1st cheque book.
6. Welcome Pack at the time of
account opening.
7. Birthday surprises via SMS.
2.4.6. REPAYMENT PERIODS
S.NO TYPES OF LOANS RECOVERY PERIOD

1 Short Term Loans Maximum period of 12 months.
2 Medium Term Loans More than 1 year less than 5 years paid able in
quarterly or half year basis.
3 Long Term Loans Period of more than 5 years. in yearly/ half yearly
installments within maximum period of 8 years.
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2.4.7. TYPES OF LOANS ADVANCED ON THE BASIS OF TYPES OF BUSINESS
2.4.7.1. Production Loans:

These loans are given to farmers for seed, fertilizer, pesticides, labor charges etc. to grow
crop and vegetables including working capital for poultry, dairy, orchard and fishery and are
recoverable within one and half year.
2.4.7.2. Development Loan:

The loan for purchases of items like farm machinery, tractors, irrigation, land development,
orchard, green houses, dairy, fishery, livestock, farming etc. are recoverable up to one to eight
years.
2.4.8. TYPES OF SECURITIES:
2.4.8.1. Immovable Property

Under pass book system 80%
Outside pass book system 70%
Under Alienability Certificate 66%
Commercial/Industrial Land under pass book 80%
2.4.8.2. Outside Passbook System

Urban Residential/Commercial plots inn all locations outside passbook 75%
Alienability certificate 66%
Residential/Commercial Buildings 70%
Lease hold rights of a leased land of CDA/KDA with 99 years lease 70
2.4.8.3. Moveable Property and Guarantees
2.4.8.3.1. Unconditional Bank Guarantee from Scheduled Bank

Up to maximum amount of an un-conditional bank guarantee after keeping sufficient margin
for un-paid mark-up, cost, charges and expenses.
2.4.8.3.2. Guarantee Issued by Central of Provincial Government

Full amount of loan plus return and other charges.
2.4.8.3.3. Government Securities

85% of face value of market value whichever is less.
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2.4.8.3.4. Defense Savings and FEB Certificates
75% of value of certificate presented as security.
2.4.8.3.5. Fix Term Deposits Receipts

85% of face value of deposits receipts.
2.4.8.3.6. NIT Units

80% of the face value or market value whichever is less.
2.4.8.3.7. Life Insurance Policies

85% of surrender value.
2.4.8.3.8. Pledge of Potatoes/Seed Potatoes Price or Market Value whichever is Less

Up to 75% of Govt. support.
2.4.8.4. Personal Surety

Against a bond with two securities under general credit and one surety in special schemes up
to Rs. 25,000 or up to 50% of appraised value of properties of securities.
2.4.9. RECOVERY PROCEDURE
2.4.9.1.Recovery Schedule
Recovery schedule in each case of loan as per terms of sanction of loan is fixed and
communicated to the borrowers after disbursement of loan.
In case of default of failure in repayment of any instalment on due date the markup shall
continue to be charged and instalment due to this may differ from the amount of
instalment fixed at the time of disbursement.
2.4.9.2.Issuance of Notices
Demand notice issued before the due date of every instalment.
A legal notice is issued one month after the due date informing the borrower that if the
amount is not repaid within the next one month, further legal action will be taken to
recover the dues.
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2.4.9.3.Legal Action
Legal action can be initiated against the defaulter if loan is not repaid even after of legal
notice period.
Where the court is bank’s favor has decreed a case, amount is to be settled by recovery of
amount from the action of them or tagged property.
The bank may purchase the mortgaged property if consider feasible to depose it off later
on without intervention of court under financial institutions (recovery of finance)
ordinance 2001. Rescheduling of loan repayment facility.
2.4.9.4.Rescheduling of Loan Repayment Facility

ZTBL allows rescheduling of repayment of instalment to its borrowers in order to
maintain credit discipline and to mitigate their genuine problems in real hardship cases
and in areas declared as calamity hit by the respective provincial governments.
The rescheduling facility is to be considered by bank in case to case basis and is to be
allowed on borrower’s request only.
The relaxation in recovery period shall not be allowed beyond one year in any case.
The borrower shall have to execute a supplementary loan agreement on one judicial.
Stamp paper of appropriate value to give legal cover to extended period.
The borrower shall have to pay the return of extended period.
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Chapter No.03
FUNCTIONAL DEPARTMENTS OF ZTBL
3.1. FINANCE AND ACCOUNT DEPARTMENT
The finance and Accounts Division of the ZTBL is responsible for handling the financial
affairs and keeping the records of all the transactions, preparations of accounts, financial
statements and budgets and to manage, distribute and reconcile funds all zonal offices and
branches of the ZTBL . More over this division acts as the backbone for the bank, in order to
strengthen the rural and agricultural sector of Pakistan, to manage funds, mitigate poverty,
capital market and investment activities. The main aim and responsibility of this division is to
make policies, planning, mobilization and administration of the bank’s financial resources
such as products and services. This division provides schemes and loans for small and large
farmers. Getting loans and register with schemes, the farmers can invest money in their
businesses and to get maximum profit from it and to pay low interest rates. This division
manages the bank’s financial relations with the objectives of providing loans to borrowers.
The ZTBL lends money to individuals or corporations for consumption or investment and
charge interest on the loans. But besides this, finance is the science that deals with the funds
management such as saving and lending money while account is a arrangement between a
buyer and a seller in which payments are to be made in future. In short, this division can a
gain a tremendous importance over the other division in the ZTBL , through its functions and
truly be called as the backbone for the bank, in order to manage funds, mitigate poverty and
increase the living standard op people of rural areas.
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3.1.1. Functions of Finance and Accounts Division
This division mainly deals with concept of time , money and risk how they are inter related. It
also deals with how many is budgeted. However finance works most basically through
individuals and business organizations depositing money in a bank. The main function of the
FAD is given under;
To providing pro active financial policy , timely strategic financial planning and risk
management.
To managing the bank’s assets and liability portfolio.
To prepare, prompt and accurate financial reporting and preparing audited financial
statements for the bank’s annual report.
To overseeing internal controls in the processing of financial transactions accounts,
budgets and credit of the bank.
To reconcile funds of all zonal offices and branches of the ZTBL.
To administer, monitor and control the bank’s loan and portfolios, including management
and disbursement of loans.
To manage the cash inflows and out flows.
To maintain a books of accounts.
To coordinate and facilitate a business planning, budgeting and to formulate the
budgeting estimates of revenue and capital expenditure.
To consolidate all the financial statements of zonal offices and branches, in order to make
financial decisions.
To prepare quarterly, semi annually and annual financial statements. And its agenda for
presentation to the Audit Committee, BOD’s and also to prepare annual capital adequacy
ratio for certification by external auditors.
This division ensuring that all financial obligations are met and collections are made.
3.1.2. Classification of the Finance and Accounts Division:
In order to classify the finance and accounts division of ZTBL, there are four departments,
which pays very important role in the financial affairs and keeping the records of all the
transaction, preparation of accounts, financial statements, budgets and to manage, distribute
and to reconcile funds of all zonal offices and branches of the ZTBL Head office.
26
3.1.2.1.Central Accounts Department (CAD)
Policy Unit
Accounts Unit
Tax Unit
Fixed Asset Unit (FAU)
Pre-payment Verification Unit (PVU)
3.1.2.2.Head Office Accounts Department (HOAD)

Pay roll Unit
Fund Unit
Payment Unit
Intra Branch transaction (Reconciliation) Unit (IBTU)
3.1.2.3.Regulatory Reporting Department (RRD)

Regulatory & Internal Reporting Unit (RIRU)
Financial Management Information Unit (FMIU)
27
3.2. HUMAN RESOURCE DEPARTMENT:
The organization is made up by three types of resources such as human, physical and
financial resources. Recently the ZTBL can properly utilize their resources more efficiently in
order to strengthen the rural and agricultural sector, mitigate poverty and investment
activities. But the most important is the human resource and which the key ingredient for
success of any organization. Hiring and retaining productive people is critical to the success
of every organization which is permanent, temporary or contract basis. The Human Resource
Division mainly involve in hiring of employees, training and development of employees,
employees motivation… etc.. “ Activities necessary for staffing the organization and
sustaining high employee performance” the achievements of the ZTBL and the
implementation plans for future can never be possible without skilled and motivated
employee, for this purpose the HRD makes continuous effort to attract highly educated,
skilled and trained man power in different fields especially in the field of IT, HR and Finance.
Trainings, workshops, seminars, support for higher education are the few activities being
carried out to upgrade the skills of professionals working. The ZTBL can motivate their
employees by providing compensation packages, house rent, medical allowance… etc. The
Human Resource analysis is briefly explained as under;
3.2.1. Hiring of Employees:
The ZTBL can hire the employee by submitting the CV I the human resource department. If
the person is eligible for the post, then the head of HRD will call to inform the person for the
interview. Recruitment staff including job description, perpetration, preparing advertisement,
checking application forms, short listing, interviewing and selecting candidate through the
selection procedure is done by HRD.
3.2.2. Training and Development of Employee
Once the employees are recruited by the HRD, it is very important to develop their skills.
There are two ways to develop their skills and to give trainings in the ZTBL Staff collage
such as theoretical and practical training. However, initial training or pre-service training is
given to the employees at initial stage of fresh candidates. This training covers the theory
related topics such as banking rules, regulations and operations. After completing the
theoretical training, they are placed on different branches for getting practical training.
28
3.2.3. Employees Motivation
The ZTBL can motivate their employee by providing different facilities. The employees, who
are motivated, exert a great effort to perform the assigned task effectively and efficiently,
then, those who are not motivated. Various measures are used in ZTBL for motivating
employees. The techniques are follows.
3.2.4. Compensation Package
The compensation is based on employee’s knowledge, education, skills and experience. There
is no fixed pay scale in the bank. Many people get different salaries even though they had
been selected for the same batch under the same circumstance with same qualification but
mostly depend on the grade on which the employee is ranked.
3.2.4.1. Promotions
The ZTBL can promote the employee to higher grades on the basis of performance during
each year.
3.2.4.2. House Rant
House rant is provided to all categories of staff, this allowance is not payable to those who
are provided with accommodation by the ZTBL. The ZTBL can also provide the
accommodation facility for their employees, in order to reduce the absenteeism.
3.2.4.3. Medical Allowance
The ZTBL reimburse the cost of medical advice and medicines, claimed by the employees for
themselves and their departments on production of medical certificates from employees
including disbursement made by him.
29
3.3. MARKETING DEPARTMENT
The marketing is a process of managing the performance of business activities designed to

plan product, price and promote, in order to achieve organizational objectives. Though is
sounds simple, the actual practice poses many challenges. The marketing analysis of an
organization plays a vital role in directing its future direction. A good marketing analysis can
give new heights, whereas a poorly designed analysis can prove to be disastrous. However,
the marketing is based on customer’s satisfaction through its value-added products and
services. The ZTBL regularly use different methods of marketing in order to aware and
attract customers regarding their products and services. The marketing analysis is done by
using various methods used by the ZTBL, those are defined as under.
3.3.1. Print Media Advertisement
The ZTBL give different advertisement regarding their products and services in order to
attract large number of customers from time to time.
3.3.1.1. The 4Ps

I. Product
The ZTBL strategy is offer most comprehensive portfolios of personalized financial solution
that are customer tailored to serve the requirements of customer.
II. Price
The ZTBL follows the strategy of “low margins, high volume” with its low markup and easy
payment schedule it tend to be more attractive even for customers with less money.
III. Promotion
The ZTBL effectively advertises its service and product through broaches, book let
magazines and low margin on loan is also the base of promotion.
IV. Placement
With a wide network of ZTBL the bank operates through 25 zonal offices with 324 branches
under them with over 1250 agriculture graduates known as MCO.
30
3.3.2. Internet and Electronic Media Advertisement
The ZTBL consistently give information regarding their product and services on the internet
and also give commercial on the television for awareness and attracting the large number of
customers.
3.3.3. Brochures
They have designed different brochures for each department and for each product, these are
given to customers for information and attraction purpose.
3.3.4. Sports Sponsorships
The ZTBL sponsor different sports promotion activities on television and radio like cricket,
hockey so forth.
31
Chapter No: 04
FINANCIAL ANALYSIS & RESULTS
4.1. FINANCIAL STATEMENTS

4.1.1. Income Statement
2016 2015
Mark-up / return / interest earned 19661749 18284436
Mark-up / return / interest expensed 5,455,516 6,013,775
Net mark-up / interest income 14,206,233 12,270,661
Provision for diminution in the value of investments -- -
net Provision / (reversal) against non-performing

loans and advances – net 1,778,030
Write so under relief packages 206,861 -573,110

Bad debts written o directly - 160009
1,984,891
Net mark-up / interest income after provisions 12,221,342 -413,101
NON-MARK-UP / INTEREST INCOME

Fee, commission and brokerage income 26,397 40,919
Dividend income 148,540 81,805
Income from dealing in foreign currencies - -
Gain on sale of securities – net 179,322 366,437
Unrealized loss on revaluation of investments
classic end as held for trading -80 -

Other income 4,036,011 5,086,001
Total non-mark-up / interest income 4,390,190 5,575,162
16,611,532 18,258,924
NON-MARK-UP / INTEREST EXPENSES
Administrative expenses 9,692,359 9,706,358
Provision against other assets – net 3,290 34,936
32
Other charges 214,348 23,974
Total non-mark-up / interest expenses 9,909,997 9,765,268
6,701,535 8,493,656
Extra ordinary / unusual items - -
PROFIT BEFORE TAXATION 6,701,535 8,493,656
Taxation - Current year 2,483,154 2,311,747
- Prior years 989,117 361,408
- Deferred -149,980 477,391
3,322,291 3,150,546
PROFIT AFTER TAXATION 3,379,244 5,343,110
Unappropriated prot brought forward 18,983,064 14,742,303
Prot available for appropriation 22,362,308 20,085,413
Basic earnings per share (Rupees) 2.7 4.27
Diluted earnings per share (Rupees) 2.7 4.27
33
4.1.2. Balance Sheet
ASSETS 2016 2015

Cash and balance with treasury banks 3,477,750 2,516,338
Balance with other banks 20,453,942 16,742,698
Lendings to financial institutes - -
Investments-net 37,018,541 19,665,649
Advance-net 135,765,150 129,552,744
Operating fixed assets 2,084,763 2,105,429
Deferred tax assets-net 680,968 507,162
Other asset-net 16,463,063 16,793,850
215,944,177 187,883,870
LIABILITIES
Bills payable 493,231 346,059
Borrowings 55,885,230 57,143,100
Deposits and other accounts 59,712,858 35,869,024
Sub-ordinated loan 3,204,323 3,204,323
Liabilities against assets subject to finance leas - -
Deferred tax liabilities net - -
Other liabilities 13,836,960 11,845,150
(133,132,602) (108,407,656)
NET ASSETS 82,811,575 79,476,214
REPRESENTED BY
Share capital 12,522,441 12,522,441
Reserves 6,298,157 5,643,290
Under appropriated profit 21,407,474 18,983,064
40,228,072 37,148,795
Share deposit money 40,155,992 40,155,992
Surplus on revaluation of assets-net of tax 2,427,511 2,171,427
82,811,575 79,476,214
34
4.2. FINANCIAL ANALYSIS
4.2.1. HORIZONTAL & VERTICAL ANALYSIS OF INCOME STATEMENT
Horizontal Analysis Vertical Analysis

2015 2016 2015 2016
Mark-up / return /interest earned 41 0.07 100 100
Mark-up / return /interest expensed 55 0 32.8 28
Net Mark-up /interest income 35 0.157 67 72
Provision for diminution in the --
value of investments-net ---
Reversal / provision against non- -45

performing loans and advances-net --- 0 0
Impairment in the value of --

investment -- 0 9.04
Write offs under relief packages 1923 -1.36 -3.13 1.05

Bad debts written off directly -- 0.87
-61 0 10.09
Net mark-up / interest income after 58
provision -30 -2.25 62.15
0 0
NON MARK-UP / INTEREST
INCOME 0 0
Free commission and brokerage 203

income -0.35 0.22 0.13
Dividend income 58 0.81 0.44 0.75

Income for trending in govt:
securities
Income for dealing in foreign --

currencies -0.51 2.00 0.91
Gain of sale of securities 1105 0 0

Unrealized gain on revaluation of --
investments classified as held for
treading -0.46
35
Other income 6 -0.20 27 20.5
Total non mark-up / interest income 14 -0.21 30 22
41 -0.09 99 84
NON MARK-UP / INTEREST
EXPENSES 0 0
Administrative expenses 27 0 53 49
Provision / (reversal) against other -4
assets-net -0.9 0.19 0.16
Other charges 5067 7.94 0.13 1.09

Total non mark-up / interest 27
expenses 0.014 53 50
62 -0.211 46 34.5
EXTRA ORDINARY / UNUSUAL
ITEMS
Profit Before Taxation 62 -0.211 46 34

Taxation – Current year 25 0.074 13 12.6
Prior year 582842 1.7 2 5
Deferred 5257 -1.3 3 -0.76
74 0.05 17 16.89
Profit After Taxation 56 -0.5 29 17
Unappropriatedprofitbrought 19
forward 0.2 81 96.5
Profit available for appropriation 27 0.1 110 114

Basic earnings per share 56 -0.5 2 1.37
Diluted earnings per share -0.5 2 1.37
36
4.2.2. HORIZONTAL & VERTICAL ANALYSIS OF BALANCESHEET
Horizontal Analysis % Vertical Analysis %

ASSETS 2016 2015 2016 2015
Cash and balance with -31 3
treasury banks 0.38207 4.19959
Balance with other banks 0.22166 80 24.6994 21

Lendings to financial -- --
institutes
Investments-net 0.8824 -16 44.7021 25

Advance-net 0.04795 36 163.945 164
Operating fixed assets -0.0098 56 2.51748 3
Deferred tax assets-net 0.3427 -- 0.82231 1
Other asset-net -0.0197 42 19.8801 21
0.14935 26 260.766 237
LIABILITIES
Bills payable 0.42528 -51 0.5956064 0
Borrowings -0.022 4 67.484805 72
Deposits and other 0.66475 141 45
accounts 72.106898
Sub-ordinated loan 0 0 3.8694144 4

Liabilities against assets -- --
subject to finance leas 0
Deferred tax liabilities net -100 0 0

Other liabilities 0.16815 -72 16.708969 15
0.22807 -7 -160.7657 137
NET ASSETS 0.04197 144 100 100

REPRESENTED BY
Share capital 0 0 15.756212 16
Reserves 0.11604 61 7.1006025 7
Under appropriated profit 0.12771 38 23.885214 24
0.08289 24 46.742029 47
37
Share deposit money 0 -- 50.525799 57
Surplus on revaluation of -24 3
assets-net of tax 0.11793 2.7321722
0.04197 100 100 100
38
4.2.3. Key Ratios
4.2.3.1. Current Ratio
Current Ratio
1.8
1.78
1.76
1.74
1.72
1.7
2016 2015
Current Ratio
It measures the firm’s ability to meet current obligations given a level of current assets. In
2015 Bank’s current ratio was low but in 2016, ZTBL increased its ability to meet its
liabilities.
4.2.3.2. Quick Ratio
0.23
0.22
0.21
0.2 Quick Ratio
0.19
0.18
0.17
2016
2015
It is a more refined measure of liquidity because it excludes stock which may not be easily
converted to cash in the short period. In 2015 ZTBL has so high quantity of securities those
are not able to convert in shot period but in 2016 it came down to 0.19.
39
4.2.3.3. Return on Assets (ROA)
Return on Assets (ROA)
2.33
2.35
2.3
2.25
2.2 2.1
2.15
2.1
2.05
2
1.95
2016 2015
Return on Assets (ROA)
It measures firm’s ability to generate a return to owners using total funds. 2015 was worse for
ZTBL, almost its performance was not better but in 2016 it has good ability to generate return
it increased from 2.1 to 2.33.
4.2.3.4. Return on Equity (ROE)
Return on Equity (ROE)
24.5
25
24
23
22 20.89
21
20
19
2016 2015
Return on Equity (ROE)
Measures the efficiency with which a company uses owner supplied funds to generate returns
to equity holders. As we observe that 2015 did not performed better, here is same the 2015 is
showing bad result however 2016 has increased from 20.89 to 20.5.
40
4.2.3.5. Earnings per Share (EPS)
Earnings per Share (EPS)
1.23
1.25
1.2
1.15
1.05
1.1
1.05
1
0.95
2016 2015
Earnings per Shares (EPS)
This indicates the amount that a shareholder expects to earn for every share held. In this
graph, we are having better performance of 2016 which increased from 1.05 to 1.23.
4.2.3.6. Debt Ratio
Debt Ratio
0.8 0.8
0.798
0.796
0.794 0.7922
0.792
0.79
0.788
2016 2015
Debt Ratio
This measures the extent to which the firm’s assets have been financed by non-owner
supplied funds. In 2015 ZTBL was borrowing high debt as compare to 2016 in which it has
decreased its borrowings from 0.8 to 0.79.
41
4.2.3.7. Net Working Capital
Net Working Capital
4.4
5
4
2.4
3
0
2016 2105
Net Working Capital
This measures the firm’s potential reserve of funds and can be related to net assets or capital
employed. For all these ratios, the higher the ratio, the more liquid the company is and
therefore the lower the financial risk. So, as we see that 2016 is having high ratio to 2015,
means 2016 have improved its liquidity from 2.4 to 4.4.
4.2.3.8. Times Interest Earned Ratio
Times Interest Earned Ratio
1.67
1.7
1.65
1.6 1.55
1.55
1.5
1.45
2016 2015
Times Interest Earned Ratio
This ratio measures the firm’s ability to meet its interest expense out of its annual operations
as shown by the operating profit. Firm has decreased its ability from 1.67 to 1.55.
42
4.3. SWOT ANALYSIS OF ZTBL
4.3.1. Strengths
A proper data base system through vouchers, receipts, Generals and software.
ZTBL has a staff college for the training of its employees in Islamabad, through a
proper training and more efficient team of employees can be made which shall be
beneficial in tough banking competition.
It provides the loan to the all needy farmers at cheaper rate of interest rate as compare
to the other private banks or institutions.
The farmers/borrowers have a trust on ZTBL because of its operations and the mobile
credit officers.
4.3.2. Weakness
They are lacking of banking online system
Sometimes the lending is done on political basis. Due to the influence of political
leaders the recovery system is affected which leads to bad debts.
The ZTBL bank has no any Treasury department
4.3.3. Opportunities
To hire creative, skillful and young employees on the basis of their eligibility and
experience.
More rewards and bonus schemes should be for management as well as for employees
and promotion should be on performance of employees.
The motivation level of the employees should be enhanced by increasing
compensation and giving extra fringe benefits.
The advertisements of the products and the services of the ZTBL should be done in a
proper way with a strategic management
4.3.4. Threats
Increasing probability of danger rains, floods which effect on agriculture as well as on
lands.
Decrease of crop’s rate while formers are going to sell.
Because of single specialized sector and uncertain losses, bank has small profit
margin.
43
Inefficient practices in commercial banking lead to face a several situations.
44
Chapter No: 05
CONCLUSION AND RECOMMENDATION
5.1. CONCLUSION
In the end of this internship report I would like to say that this act not only covers my
academic term but also gives me a lot of experience, knowledge to understand the official
work of organization that in which way there are delivering their services to the customers.
this internship has developed my skills, knowledge as a professional and it also helped me for
my future goals. During my internship in ZTBL some of my activities and observations were
the coordination between employees and from employees to manager, developing positive
relation with the employees of ZTBL, had worked on given task of internship an internship is
my experience where students learn by taking on responsible roles as worker in organizations
and observing, reflecting on what happens while they are in workplace.
5.2. RECOMMENDATION
I have worked as an internee in ZTBL for six weeks. During my internship, I learned a lot
about the banking work. On first day, I reported to the branch manager and he guided me and
gave me information about the branch. In first week, he had given me information about the
overall banking in this branch. He told me about the bank and some other basic information
about the bank, checks, records, etc.
During this internship, I observed that the coordination between staff is good and relation of
manager with his subordinators is also good, but manager should consider that the trainer that
he is hiring for internee, is able to be a trainer or not, because, trainer did not give proper time
and did not give proper time.
45
5.3. REFERENCES
Official website of ZTBL www.ztbl.com.pk
ZTBL Badin branch
Wikipedia
https://www.scribd.com/doc/43069201/Internship-Report-ZTBL-Hailey-College
https://www.scribd.com/doc/39246294/Internship-report-on-ZTBL-by-mumtaz-
AliHulio
Google search engine
46

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ZARAI TARQATI BANK LIMITED

1.1. EXECUTIVE SUMMARY

1.4. RESEARCH METHODOLOGY:

1.4.1. Primary Data:

1.4.2. Secondary Data:

Limitations which I had faced during internship at ZTBL Badin A branch.

OVERVIEW OF BANKING SECTOR & ZTBL

2.2. HISTORY OF BANKING IN PAKISTAN:

2.2.1. Before independence:

2.2.3 Phases of Banking Sector in Pakistan After Independence

Phase 1. 1947 to 1974 Establishment of commercial banking system.

Phase 2. 1974 to 1979 Nationalization of banks.

Phase 3. 1979 to 1991 Islamisation process.

Phase 4. 1991 to 2000 Deregulation process.

2.2.3.2 1974-79 Nationalization of Banks

2.2.3.4. 1991-2000 Privatization and Deregulation Process

2.3.1. President's Message

2.3.3. History of ZTBL:

2.3.4. ZTBL Vision:

2.3.5. ZTBL Mission:

2.3.6. Corporate Objectives:

President Syed Talat Mahmood

Director Mr. Zahid Idris Mufti

Director Mr. Abdul Ghafoor Mirza

Director Mohammad Tanvir Butt

HRM Risk Information Audit

S.NO Provinces Zonal Offices Branches

2.4.1. BANK ACCOUNTS:

2.4.2. AGRICULTURE LOAN SCHEMES:

Production Loan Schemes

Awami Zarai Scheme (Farm Credit)

Kissan Dost Scheme

Sada Bahar Scheme (SBS)

Awami Zarai Scheme (N. farm Credit)

SBP one window Op. Scheme

Govt of Punjab Markup Free Agriculture E- Credit Scheme

2.4.2.1.1 Short Term Loans

2.4.2.1.2. Medium Term Loans

2.4.2.1.3. Long Term Loans

2.4.2.2. Development Loan Scheme

Financing to Service Provider/Crop Production Companies

Warehouse Receipt Financing Scheme

Camel Rearing Scheme

Agriculture Financing Scheme (Cut: Flower)

Khawateen Rozgar Scheme

Shamsi Tawanai Scheme (Solar Pumpr)

Tawanai Bachat Scheme (Biogas Unit)

Tahfuz-e-Samar Scheme (Veg & Fruits)

Soghat-e-Shireen Scheme (Gurr Making)

Scheme for Gilgit Balochistan

Tabacco Barn Financing Scheme

Financing Package for Karachi

Special Product Milk Chilling Unit

Khushk Ratab Scheme (Chuhara)

Red Meat Scheme

Rural Development Scheme

Asaan Qarza Scheme

2.4.2.3. Other Schemes

Crop Loan Insurance Scheme