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MUHAMMAD ALEEM
Submitted By:
Muhammad Ismail
SP09-MBA-077/LHR
MBA 3rd Semester
In The Name
COMSATS OfOF
INSTITUTE
ALLAH
INFORMATION TECHNOLOGY
LAHORE CAMPUS
The Most Beneficent And
COMSATS INSTIUTE OF INFORMATION TECHNOLOGY LAHORE 1
Merciful
COMSATS INSTIUTE OF INFORMATION TECHNOLOGY LAHORE 2
DECLARATION
An internship report submitted to department of management sciences CIIT
Lahore, in partial fulfillment of the requirement for M.B.A
DEDICATIONS
To my parents whose unconditional love & support helped me in making this
report.
To my teacher Muhammad Aleem for his cooperation and assistance.
To my siblings for their gentle encouragement & valuable support.
Also my dear mother for supporting me through out my tenure of learning as well
as praying for my success through out my life and also in my future.
Her prayers today make me so proud also my dear father for supporting me
financially all my life, fulfilling my basic necessaries as well as luxuries of life. I
am thankful to my parents for their support through out my study career. Today
what I am, because of them.
All praise and gratitude due to ALLAH ALMIGHTY who created man in His own
image and enjoyed upon him to travel on the earth and enter into a profound and
analytical study of Universe for spiritual appreciation of ALLAH’S unity and His
attribute as well as for harnessing the material manifestation of the world to the
mankind’s profitable utilization. In the first place, therefore we express our utmost
thanks to ALLAH.
At the next stage I offer our gratitude to our Apostle and prospector Prophet
Muhammad (P.B.U.H) for his golden saying “Gain knowledge is in China”.
In the end I would like to thank all the staff members of ZARAI TARAQIATI BANK
who cooperated with me in every department. They have cooperated with me in
every department. They have provided me with valuable information which
helped me a lot in completion of this report. It was relatively a new phenomenon
for me, but I am quite sure that I have learned a lot from this internship.
With an intention of grooming the best executives of the future, Comsats institute
of information technology Lahore has organized a comprehensive internship-
training program. All of us were placed in leading organizations of business
arena to gain first hand knowledge and insight into their management and
working. So, when I was given the chance of selecting an organization, I opted
for Zarai Taraqiati Bank Limited.
After the completion of internship program, internship report has been prepared
just in accordance with the practical exposure. In preparing this report, I have put
all of my best efforts and tried my level best to give maximum knowledge.
Despite all of my coherent efforts, I do believe that there will always be a room
for improvement in the efforts of learner like me.
MUHAMMAD ISMAIL
SP09-MBA-077
This report consists of my six weeks internship at Zarai Taraqiati Bank Limited
which is situated on Shahr Sultan at Alipur road. Consistently focusing on improving
performance so that risks can be left far behind. ZTBL was incorporated as a
Public Limited Company on 14th December, 2002 through repeal of formal
Agricultural Development Bank of Pakistan Ordinance of 1961. ZTBL started its
services in 1961 under the banking ordinance 1961 as ADBP (agricultural
development bank of Pakistan) till 2002, when it was transformed to Zarai
Taraqiati Bank Ltd. (ZTBL) as it was provided with the funds by federal
government, now ZTBL has to earn profit to sustain it as a financial institutions.
Corporate Mission:
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.
The total assets of the Bank stand at Rs.84 billion with authorized capital of
Rs.25 billion as of 31.12.2005, with a nation-wide working strength comprises
5500 employees. The share of ZTBL in total national institutional agricultural
credit remains around 35%.
COMSATS INSTIUTE OF INFORMATION TECHNOLOGY LAHORE 9
Sr. No. Provinces zone No of branches
1 Punjab 12 158
2 Sindh 6 90
3 Khyber Pakhtonkha 4 61
4 Baluchistan 3 31
5 Azad Kashmir 1 7
6 Gilgit Baltistan 1 1
Total 27 348
Under this scheme agriculture loans are given for short, medium and long
term loans up to Rs.1.00 million per borrower/per case. The loans are
sanctioned for In Fats, livestock, orchard, tractor, agricultural machinery, tube
well and irrigation facilities etc. under the scheme besides provision of credit,
information are to the farmers for planning the farm, production, guidance for
implementation of the scheme, marketing and repayment of loans.
Water plays vital role to improve per acre yield. Out of total 31 million hectors
area of Pakistan, 22 million hectors is cultivated while 9 million hectors is
cultivable waste mainly due to non-availability of water. More over increase in
water supply being a key input is required to raise cropping intensity and hence
the income of the farmer. Since inception ZTBL financed over 143000 Tube wells
amounting to Rs.15 billion. For raising irrigated area to accelerate the economic
growth and to facilitate the farmers ZTBL has signed collaboration agreement
with M/s KSB Pumps Company Limited (Company) on 28th May, 2007. Farmers
of at least 3 acres land holding will be eligible to avail financing under the
scheme provided loan proposal is feasible. ZTBL will disburse Rs.6 billion to the
farmers for installation of 30,000 Tube wells/Turbines during the next five years.
KSB Pumps Company will provide quality machinery/equipment for efficient
pumping of water. The company shall also provide after sale service including
replacement of parts/availability of spares etc. through its network of dealers.
For providing timely input loans for crops and working capital for poultry and
fishery etc, the Bank has launched a Sada Bahar Scheme. Assessment for
inputs requirements for the whole year is made at the time of first application.
The amount so assessed is treated as Revolving Limit provided it is within the
security limit. The Managers are authorized to sanction such loan limits up to
Rs.O.500 million. Scheme's main features are as under:
In order to increase the tea cultivation in District Mansehra, Swat, Matta, Shangla
par and Dir in
Malakand Division, tea financing scheme has been introduced which would not
only save the hard earned foreign exchange but would also help improve the
ZTBL is the only institution with total focus on agriculture, the back bone of
Pakistan's economy, and a key player for alleviating poverty by ensuring greater
outreach for cost effective and timely availability of credit to the farming
community. Private sectors initiative is understandably lacking in this important
economic sector with inherent risks. Therefore the agricultural loans provided by
commercial banks are mostly tied to large agro based industrial projects in
sectors like sugar, milk and juice plants etc. The real needs of the small farmers
are production loans for agri inputs, and development loans for farm machinery
and implements, which are almost catered by ZTBL. In addition ZTBL is required
to play another important role in uplifting rural areas with special focus on
women.
The Bank is increasingly meeting the growing demand of the farming community
in line with the Government's policy to revitalize the agriculture sector to play its
role in strengthening the Pakistan's economy. During the year 2009 the
disbursement of agri loans has increased from Rs. 55.9 billion in the year 2007 to
Rs. 77.6 billion, registering an increase of Rs. 22 billion in just one and a half
year since my taking charge of the Bank.
Products and non-traditional items. The objective was to gain knowledge and
experience from these countries and to apply such experience locally to increase
the income of the poor farmers, I am glad to share with you that as an out come
of these interactions ZTBL will not only benefit in obtaining technology but
arrangement of credit lines through these visiting delegations is also expected as
they are patronized by their governments. We plan to continue such interactions.
The Bank's vision is to be the lead bank dedicated to serve the financial and
technical needs of the farming community efficiently, competitively and on a
sustainable basis to strengthen the agriculture sector leading to success of the
Bank and the farming community. I feel immense pleasure to say that ZTBL has
now become a vibrant and self-sustainable financial institution, while new
agricultural technologies and various innovative packages of customer friendly
products and services have also been introduced. This is all due to hard work,
dedication and motivation of ZTBL team, which has resulted in taking financial
health of the institution to new heights as well as meeting the credit and
technological needs of our farmers contributing to the overall development of the
agriculture sector.
I take this opportunity to congratulate and appreciate all my colleagues and every
member of our team who's untiring efforts have made it possible to achieve the
highest ever performance of the bank in all sphere of its operations i.e.
disbursement, deposit, gross profit, and reduction in non- performing loans*(Link
for Performance Indicators). This commendable performance in the last two
years of the present Government has been due to the dynamic leadership,
support, vision and direction of the Honorable President of Pakistan Mr. Asif Ali
Zardari and Honorable Prime Minister of Pakistan Syed Yousaf Raza Gillani for
mechanization of farms, uninterrupted credit supply, expanded outreach that
guided the Bank's management to translate the vision of the People's
Government into reality.
Now that ZTBL team has been assured that all good work would be rewarded, I
do hope that the present pace and dedication would continue by our
professionally competent team. Every member should resolve to surpass the last
PAKISTAN ZINDABAD
• The total assets of the Bank stand at Rs.84 billion with authorized capital
of Rs.25 billion as of 31.12.2005, with a nation-wide working strength
comprises 5500 employees.
• The share of ZTBL in total national institutional agricultural credit remains
around 35%.
• ZTBL has a recovery ratio of 85%.
• ZTBL has a social network of MCOs that work in every remote corner of
country, where any other commercial bank can’t dare to work.
• Utility bills, hajj schemes applications are being collected by ZTBL.
• It has introduced locker facility in some limited branches.
• They have good cooperation with farmers; they meet them at least one
time in a week, which produces good cooperation among them.
Weaknesses:
• ZTBL has a less number of people who have technical skill of computer
and information technology.
• Up till now many branches could not be brought to online system.
• As the ZTBL has to deal with the illiterate farmers that is why it has to
keep itself as simple as the farmer’s mentality.
• The employees are promoted after a very long time that causes a distress
among employees.
• Many branches still practice their daily transaction by book, which makes
banking laborious and time consuming.
• Branches of ZTBL are ill equipped, less and poor quality furniture is
provided.
Opportunities:
• ZTBL has a great potential to serve general banking.
• Deposit system introduction can generate funds for the bank.
• By making investment in new areas.
• Senior employees’ compliance with coordinators can enhance their
working abilities.
• By developing technical education, the bank can increase its progress.
Threats:
• Book keeping is proven to be a greater threat for ZTBL as there is danger
of record loss.
• There is no availability of online record which can produces confusions
among loonies.
• Although the recovery ratio is round about 85% but it is only window
dressing and not the actual one.
• There is no maintenance of duties by the staff.
• Their interest ratio is round about 9% per annum, which is very low from
other commercial banks.
Operations Division
Field operations unit 11 Field operations unit 11 Audit compliance Business development unit Marketing unit
ZONAL CHIEF
SENIOR OFFICER
SENIOR OFFICER OPERATION COMMUNICATION OFFICER SENIOR OFFICER SAM ADMINISTRATION
DEPUTY MANAGER
SO
The bank has made an agreement with CDBPAK, as consultants to quantify and
capitalize carbon credits for ZTBL Carbon Credit, it added. It said that in view of
changing climate patterns the agriculture sector was undergoing phenomenal
changes including water scarcity, temperature variations, low soil fertility,
increasing population, decreasing farm sizes and require a paradigm shift in the
approach towards the agriculture
The target clients of the ZTBL are farmers, who need to be apprised about using
cheap and renewable sources of energy as well as water conservation
techniques to reduce carbon emission and at the same time enhancing the
agriculture productivity at their end, it added. Realizing the challenges of the
global climate changes in the 21st century ZTBL has emerged as a pioneer in the
COMSATS INSTIUTE OF INFORMATION TECHNOLOGY LAHORE 30
sector, the press release said adding that it has assumed the role of a green
bank by adopting an environment friendly approach Agencies.
This was stated by President ZTBL Ch. Zaka Ashraf while talking to APP here.
He said under a special package, ZTBL provides 90% investment to the growers
And all out efforts are being made to make them self-reliant and bring prosperity
to the country. Ch. Zaka Ashraf told that 10,000 tractors have been provided to
the farmers while 20,000 more tractors will be given to growers under Benazir
Tractor scheme, adding loans will also be given to the growers under the
scheme.
President ZTBL said that loans worth Rs. 72 billion will be given to the farmers
while solid steps are also being taken for the recovery of Rs. 75 billion from the
defaulters. He said, the government wanted to bring green revolution in the
country. Latest methods are being introduced and utilized to achieve the target,
he added.
• Vast Majority of poor live in rural areas (nearly 80% of all poor live in rural
areas).
• Poor are mainly dependent on agriculture for their food and livelihood
security Livestock is an important of livelihood for the poor.
• Livestock fattening.
• Fruit processing.
Accelerated growth of agriculture, especially of high value
agricultural activities, will continue to be cornerstone of Government overall
strategy to reduce poverty. ZTBL and micro-finance institutions; need to
increase flow of rural credit.
• During 2005-06 ZTBL disbursed Rs48 billion credits and total credit
137 billion, meeting less than one third of the total demand for Credit.
• Cumbersome legal process and lack of political will creates problem for
loan recovery.
Crop Insurance:
The Benazir Credit Card Schemes and Crop Loan Insurance Schemes
have also been introduced for the benefit of cotton, rice and other crops
growers. Crop insurance Schemes have been considered an impractical
dream by the insurance sector for quite long, but innovative solutions
designed by National Insurance have made it a practical option. NICL and
National Bank of Pakistan have prepared an Agri Loan Insurance Policy
properly supported and backed by the re-insurance arrangements at a
reasonable competitive cost. Through this collaboration, agri loans of
more than Rs.30 billion have been provided insurance cover. Similarly,
ZTBL has also been provided the facility of Agri Insurance Cover.
Which is round about 50,000 rupees? In this way the farmers can easily
pay back the amount.
ZTBL decided to ensure the supply of quality seed, one of the most
important inputs in crop production, to have maximum yields in all crops.
As a result, production of almost all major crops, including wheat, rice,
maize, gram, moong and pearl millet, rose significantly. A special project
of improving vegetables seeds at local level has also been initiated.
Agricultural Loans:
During 2008-2009, the Government earmarked Rs.250 billion, higher by
20% over the preceding year, for banks to finance the farming community.
This amount for the current fiscal is Rs.260 billion for major and minor
crops, orchards and forestry. Credit limit was increased because of rising
prices of all inputs including electricity. Crop loan insurance scheme was
also introduced to enhance the access of farmers to agricultural loans.
Provision of agricultural credit to farmers facilitated them to procure the
costly inputs in order to ensure the target planting and production of
various crops. A new Agriculture Mode Village Program has been initiated
in 26 villages under the auspices of Zarai Taraqiati Bank Limited
(ZTBL). The objective is to organize the farming community at the
village level ensuring farmers easy access to agri credit.
The present study was conducted to examine the utilization and effects of
short-term credit from Zarai Taraqiati Bank Ltd. (ZTBL) at Tehsil Kabul area of
district Swat in August 2003. Eighty respondents were selected in which forty
were the beneficiaries of ZTBL and the remaining forty were the non-
beneficiaries selected from the same area. Paired sample t-test was used to
compare the production and income of the beneficiaries without credit and
with credit. Independent sample t-test was used to compare the production
and income of beneficiaries with non-beneficiaries. On overall basis
beneficiaries’ farmer utilized 78.84% of the amount of credit for the purpose it
was received. While the remaining amount i.e. 21.15% was mis-utilized. Per
acre production of beneficiaries with credit for tomato, wheat, maize and
onion were 170.4 maunds (1 maund equal to 50kg), 24.6 maunds, 39.4
maunds and 152.4 maunds, respectively. In case of beneficiaries without
credit it was 139.6 maunds, 18.93 maunds, 30.3 maunds and 130.7 maunds,
respectively on per acre basis. While in case of non-beneficiaries it was 144.5
mounds, 19.25 maunds, 32.2 maunds and 135.3 maunds, respectively on per
acre basis. Net return of beneficiaries with credit for tomato, wheat, maize
After a considerable lapse of time; ZTBL has experienced in the last two years a
most productive growth. The executive management has managed to
successfully convert the highly demoralized non-productive HR workforce into
productivity mode. Through the newly revamped productive HR workforce the
Bank has posted an overall 1.6 billion rupees in profits..
The Information Systems Division has been reorganized and revamped through
the induction of highly skilled and seasoned human resource and has enabled
the bank to do on-line loan processing using the bank’s own newly established
Wide Area Network (WAN). The efforts of the ISD development team towards the
successful modification of the architecture of the legacy loan processing system
has resulted in effectively conserving more than twenty years of continuous
business processes improvements of investment.
This radical new development in the Bank’s ICT infrastructure has offered
tremendous operational efficiency. For example in the past the Branch office staff
conducted business manually and then hardcopies of the transaction data was
manually fed into the system on a weekly basis at the zonal offices.
Upon completion of the data entry of all branch offices within a zone was
completed, the Zonal office would then dispatch the consolidated data on tape
cartridges through courier services to the head office. Due to this process; at
Times considerable delays were experienced by the Bank for the compilation of
consolidated nationwide bank position.
The Bank has selected ORACLE ERP in order to revamp the entire BackOffice
operations. In this regard, ORACLE University is currently conducting a two and
half months long rigorous training program for more than 120 bankers.
DMS has been designed to allow the bankers to post transaction themselves by
using most modern concepts like photo and signature verification on the screen.
With the deployment of the new system; all records would now be verified by
NADRA, checked for credit worthiness from the State Bank.
It has been planned that by the end of June, 2008, more than 250 branches
would be equipped with necessary hardware with preinstall DMS and NADRA
verified clients from on-line processing system.
Equipment to introduce new technologies and make available for the forming
sector. On successful demonstration the product will be marketed through kissan
support services. Speaking on the occasion, the president ZTBL Ch Muhammad
Zaka Ashraf expressed the hope that the agreements would a long way in
promoting the agriculture in the country besides benefiting the farmers.
Agricultural Credit:
Credit requirements of the farming sector have been increasing over the years
mainly due to the rise in the use of fertilizer, pesticides and mechanization. In
COMSATS INSTIUTE OF INFORMATION TECHNOLOGY LAHORE 41
order to cope with the Agriculture increasing demand for agricultural credit,
institutional credit to farmers is being provided through Zarai Taraqiati Bank
Limited (ZTBL), Commercial Banks, Punjab Provincial Cooperative Bank Ltd
(PPCBL) and Domestic Private Banks. The Government has allocated Rs 160
billion for agriculture credit disbursements for the year 2006-07 which is 23.1
percent higher than the allocation of the preceding year i.e. Rs 130 billion. The
allocations, however, are totally voluntary and indicative in nature as the
mandatory allocations policy has been totally phased out and the allocations for
commercial banks have also been made indicative. The elimination of mandatory
credit allocations coupled with active involvement of commercial banks in
agricultural finance is major milestone achieved towards mainstreaming of
Agricultural loans amounting to Rs. 104.8 billion were disbursed during (July-
March, 2006-07) as against Rs.91.2 billion during the corresponding period last
year, thereby registering an increase of 15 percent. The share of ZTBL in supply
of total agricultural credit by institutions increased and was 32.9 percent during
(July–March, 2006-07) while it was 31.8 percent during the same period last
year. However, the share of Commercial Banks has surpassed the share of
ZTBL; it was 46.8 percent of the total agricultural credit disbursed during July–
March 2006-07. While the share of PPCBL has also slightly increased as it stood
at 5 percent in supply of total agricultural credit by institutions. The share of
domestic private bank has increased; it was 15.3 percent as compared with 12
percent in the corresponding period of last year. Supply of agricultural credit by
various
COMSATS INSTIUTE OF INFORMATION TECHNOLOGY LAHORE 42
b) Loan under One Window Operation:
The major objective of this programme of ZTBL is to make credit more accessible
to rural women through Female Mobile Credit Officers (FMCOs). Under Credit to
Women Program, women can meet their credit needs through both Micro Credit
& General Credit Scheme. Presently, 17 FMCOs are exclusively looking after
credit needs of women in 17 branches of the Bank, whereas female borrowers
may also obtain loan through male MCOs throughout the country. During (July–
March, 2006-07) loans of Rs. 99.572 million have been disbursed under this
programme.
COMSATS INSTIUTE OF INFORMATION TECHNOLOGY LAHORE 43
e) Micro Credit Scheme:
Under the Micro Credit Scheme of the ZTBL, all the Mobile Credit Officer working
in the branches process micro credit cases both for men and women to engage
rural poor in income generating activities/cottages industries. Financing under
this program is provided for 136 loanable items. All loans are recovered within 18
months of their advancement.
Explicit all service charges so that the borrower will not incur hidden charges
during the term of the loan.
• Growth in agricultural credit recovered in financial year 2008, after a
relative slowdown in the preceding two years. The agricultural credit
disbursements rose to Rs. 211 billion in financial year 2008, up by 25.4
percent. The domestic private banks fared well both in disbursements and
in the recoveries while specialized banks could not maintain their market
share. A strong resurge in the number of borrowers is also a welcome
development during financial year 2008. The number of borrowers
increased to 1.28 million during financial year 2008 as against a declining
trend in the previous three years. Despite, rise in interest rates amid
monetary tightening, a significant increase in agricultural credit and
number of borrowers during financial year 2008 is principally attributed to
5 Agricultural credit disbursement target for financial year 2009 is set at
Rs. 250 billion. The main thing to say is that about 25% of this agricultural
credit is taken from Zarai Taraqiati Bank Limited. The structural changes in
agricultural credit are shown below which manifests that the major share
of agricultural credit is received from specialized banks and ZTBL is the
leading one.
Duties
• Reconciliation of bank statements.
• I calculate the working days of employees and last year and the prepare
bonuses for the employees and allowance to employees to have full
attendance last year.
• Accounts management.
• This is the core part of my fresh knowledge that I gained while working
in the Bank.
• The overall working environment was very good in which I learned a lot.
• Got an opportunity to work in a well known organization.
• Completed all of my duties on time.
• Improved my confidence and communication skills by talking to advisor
and other managers.
• Learn about effective information dissemination within office environment.
Zarai Taraqiati Bank Limited is a well known well reputed and well established
organization in Pakistan; every thing in the organization is outstanding. All the
departments are working properly; working environment is very good after
spending 6 weeks in Finance department of the Zarai Taraqiati Bank Limited
Conclusion
Bank Limited was a mighty experience, in terms of learning, dealing with people,
getting the how know of the working of organizations and the intricacies of
helps one in choosing the area of work to adopt in professional life. This training
program sets a strong basis for students about to enter professional life to do the
integrate work with knowledge, their learning capacity and the ability to sustain
pressures.
Zarai Taraqiati Bank Limited is a huge name in the agricultural sector and a large
number of loans are provided to the agricultural sector by the Zarai Taraqiati
Bank Limited but I experienced some problems that should be encountered.
These problems are:
• Transportation facility is not provided to the whole employees, it should be
provided to them.
Recommendations
WWW.ZTBL.COM.PK
WWW. GOOGLE .COM.PK