KMBL Gujrat Internship Report

Internship report on kmbl
INTERNSHIP REPORT ON KMBL
BRANCH NAME
KMBL Gujrat
INTERNSHIP PERIOD
26 July 2013 to 9 Sep 2013
SUBMISSION DATE
13 September
CLASS
MBA finance (2011-2015)
EXECUTIVE SUMMARY
The report is specially meant for the students of UOG. It is concerned to a brief study of
operations, functions, tasks and services of Kashf Micro-finance Bank Limited of Pakistan. It is
the requirement of the MBA (3.5yearz) course in university of Gujrat that all the students of
MBA have to spend six weeks in any organization to get practical exposure and to get
familiarized with the ways to survive in the organization environment which is totally different
from the educational environment. These six weeks period is called the INTERNSHIP
PERIOD. I have also been assigned to do the internship of six weeks period in Kashf Microfinance Bank Limited, Faisal gate circular road Gujarat branch. It has enabled me to understand
the practical scenario and sharpen my decision making power and utilizing the skills in an
effective and efficient manner I have put all of my efforts and tried my level best to gain
maximum knowledge about practical work of my bank. During the internship period I worked in
different departments like operating, teller and liability to know briefly about the working
operations of bank
In preparation of this report I have tried my best to provide all possible information about the
operations, functions, tasks and the corporate information of Kashf Micro-finance Bank Limited
in brief and comprehensive form.
The internship report ends with some recommendation after identification of problems that I
observed during the course of my internship training.
INTRODUCTION:
The practical training is essential exercise that all the students are required to undergo during
specified period of compulsory training in private or public organization during their studies. the
student performance during the training is assessed and considered as partial fulfillment of the
requirements for award of MBA degree. However the practical training is a complement to the
knowledge acquired in the two years of classroom lessons. The training period is for 6 weeks.
I have done 6 weeks internship in Kashf micro finance bank limited Faisal gate branch Gujrat
because of feasibility as this branch is situated at walk in distance from my home and there is an
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inspirational factor to join this bank as now a days Micro finance sector is growing very rapidly
in Pakistan
I am also very thankful to the branch manager sir Adil and operation manger mam Shumaila
khan that they help in training and learning of different operations of bank.
Purpose
The basic aim of my internship is to observe the working of organization and to get practical
experience of my class room knowledge I just dont get the knowledge about the company I also
want to see that isnt this the best option to do a job in this sector. Because during internship you
can easily understand the working condition of that particular company
Scope:
The internship is a 6 weeks live experience to gain knowledge about organizational matters. This
is also very important to gain confident and become aware of the mechanism of an organization.
As an internee I want to achieve following objectives during my internship and organization
study
It will provide students the opportunity to test their interest in a practical career before
permanent commitments are made.

The students will develop skills in the application of theory to practical work situation.
Internship will develop the skills and techniques directly applicable to their careers.
It will aid students in adjusting from college to full time employment.
It will provide students the opportunity to develop attitudes conductive to effective
interpersonal relationship.
It will increase the student sense of responsibility.
Students will require good working habits.
It will help the students to enter into full time employment in their area of specialization
upon masters.
References that will enhance employment opportunities
Students will have higher levels of academic performance.
It will provide students opportunities to understand
informal
organizational
interrelationship.
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It will provide students knowledge of the formal functional activities of practicing

organizations.
Introduction of KMBL
Micro-finance:
Microfinance refers to a variety of financial services that target low-income clients. Since the
clients of microfinance institutions (MFIs) have lower incomes and often have limited access to
other financial services, microfinance products tend to be for smaller monetary amounts than
traditional financial services. These services include loans, savings, insurance, and remittances.
Microloans are given for a variety of purposes. The diversity of products and services offered
reflects the fact that the financial needs of individuals, households, and enterprises can change
significantly over time, especially for those who live in poverty
Kashf Micro-finance Bank Limited (KMBL):

KMBL Was established in June 2008 with a vision to become Pakistans leading microfinance
bank serving all to become a prosperous, equitable and poverty free Pakistan. KMBL offers a
diversified range of financial products and services to low income wage earners as well as the
self-employed of Pakistan.
KMBL has initiated its lending operations from 1st November 2008 and also commenced
liability operations from June 2009. Currently, our presence is in 26 cities of Pakistan with a
network of 31 branches. In 5 years, we plan to open 100 branches across 31 cities reaching out to
more than 1 million clients.
Our Vision
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KMBL vision is to be Pakistan leading Microfinance bank serving all to build a prosperous
equitable and poverty-free Pakistan.
Our Mission
KMBL will become the provider of choice by offering a full range of financial services to micro
and small entrepreneurs, especially women, to equitably expand economic opportunities and to
maximize value for all stakeholders.
Core values:
Core values of kmbl are;
1.
2.
3.
4.
5.
Loan sanction
Respect
Excellence
Customer satisfactory
Innovations
Shareholders:
Kashf holdings (Pvt) limited
International finance cooperation (IFC)
Shore cap international, limited
WWB microfinance equity fund
History:
Kashf Foundation began with many firsts. It was the first specialized Microfinance institution in
Pakistan, it was the first Microfinance institution targeting only women from low income
communities and it was also the first Microfinance institution to charge a sustainable price for its
services. Since its inception Kashf Foundation has continued to trail blaze in 1999 it introduced
the first pro-women consumption loan in the sector, in 2001 it was the first Microfinance
institution to offer micro-insurance services by collaborating with one of Pakistans oldest
insurance companies, in 2003 it was the first Microfinance institution to become financially
sustainable, in 2004 it was the first Microfinance institution to obtain an investable credit rating
and in 2007 it has been able to close over $36 million in commercial deals with key local and
international banks.
Nature of organization:
Kmbl aim to be an organization that is founded on
Growth by formation of sustainable relationships with customers.
Caution to guide our business conducts.
Give the business and personal loans to the customer
Kmbl shall work to
Meet the expectations by Market-based solutions and products.
Reward for entrepreneurial efforts.
Creation of value for stakeholders.
Kmbl aim to be peopling who
Concern about relationships.
Lead through the strength of our commitment and willingness to our class.
Do integrity, sincerity and hard work.
Kmbl have confidence that tomorrow we will be
Leaders in our industry.

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An institution maintaining the confidence of stakeholders.
A revolutionary, motivated and energetic institution responding to the changing needs of

the internal and external environment.
Objectives
Following are some main objective of kmbl
To earn profit for the Bank itself and maximize its shareholders value.
To provide solutions for multiple requirements of clients of diverse financial nature.
To manage with the changing trends of the modern day financial market.
To be a diversified bank by offering all basic consumer services and specialized services.
Honest and ethical conduct, including ethical handling of actual or apparent conflicts of
interest between personal and professional relationship.
To provide employment opportunities to people.
To help in development and industrialization of the country.
PRODUCTS/SERVICES OF KMBL
Lending products
Deposited accounts
Free banking
Genral banking
Funds transfer products
Clearing
Obc collection
Outward remmittance
Online banking
Atms
Lending products:
Following are the lending products of kmbl
Kashf raqam barwaqt
Kmbl can provide the running finance for the business to the applicant to boost up their business
without the hurdles of any finance. To get this loan the applicant age is from 21 to 60.
The applicant business duration limit is minimum 6 months. The bank can charge the mark up
only on used amount and it also has insurance facility. Applicant has to provide the computer id
card copy and copy of utility bills
Kashf sunehre karza
Kmbl can also provide loan on gold ornaments to facilitate its customer and they can fulfill their
finance needs. The documents required are the same that can be used in the other financing loans
The bank can charge the mark up only on used amount and it also has insurance facility.
Applicant has to provide the computer id card copy and passport size pictures.
Business Surmaya Loan
Clients requiring loans below Rs 500,000 cannot obtain access to formal financial sources, since
such amounts are still too small for commercial banks. A quick estimate can show that the
potential market for small enterprises is about 6 million with a negligible outreach to such
entrepreneurs by the banking and the microfinance sector as a whole. Kashf targets fast moving
small entrepreneurs through the BSL the entire methodology of which is based on a credit
scoring model. The BSL is advanced to clients with a minimum of 2 years running experience of
their businesses and has no collateral requirements. Generally the loan has a minimum
processing time of less than 5 days.
Insurance
Credit for life insurance has been a popular product amongst Kashf clients, since economic
upheavals are a regular part of their lives. Kashf was one of the pioneer organizations to
introduce life insurance for poor clients in order to deal with emergency periods such as the
death of a bread winner. This service is provided to the client and her spouse at a minimal
premium. The insurance covers all outstanding loan balances plus a small burial payout at the
time of the death of either party. This means that the family is able to cope with the
consequences of such an event and faces no liabilities at that time. This is in stark contrast to the
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exploitative lending practices of the traditional money lender, where the burden of repayment of
the loan is transferred to the remaining family members.
Rates:
Purpose of Loan:
To meet working capital or fixed assets requirements only.
Loan Amounts
First Loan Cycle:
Rs. 50,000-Rs.100,000
Second Loan Cycle:

Rs. 50,000-Rs.100,000
Tenure
First Loan Cycle
3 months 12 months
Age of the clients:
Age
of
Guarantor:
Business:
Type of Activity:
Experience:
Business Location:
Third Loan Cycle:

Rs. 50,000-Rs.150,000
Second Loan Cycle and beyond:

3 months 15 months
For all loan cycles: 23-60 (at the time of sanction of the loan)
the
Age of the guarantor: 23-60 (at the time of sanction of the loan)
It should be an operational business owned by the client.
Trade, production, services or livestock raising
At least 2 years of experience in the same business.
Business operating in the same location for at least 1 year.
Deposits products &accounts:
Kashf Tahaffuz term deposit

Kashf Kamaal committee
Kashf Sahulat account
Kashf Ahtimad Bachat account
High yield saving account
Kashf Winspiration institutional term deposit

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This account ranging from three months to thirty six months tenure with profit payable on monthly,
quarterly, bi-annually and yearly basis.
Features
Minimum investment of Rs.5,000/-
No account opening and closing charges
No minimum balance required

A programmed savings goal oriented account. The purpose of this account is to encourage savings for
different occasions and necessities e.g. marriage, old age benefit, education, transportation, consumer
durables, Hajj, Umara etc. This will serve as a substitute for committee system. An edge that this
product has over the traditional committee system is that profit is given on the deposit. Investment
limits range from Rs. 500 Rs. 5,000 while the tenure for this product is 1, 3, 5, and 10 years.
Features
Minimum investment of Rs.500/-
Kashf Sahulat account

A basic non interest-bearing, karobari current checking account.
Features
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Initial deposit to open account is Rs. 100/-
No account opening charges
Kashf Ahtimad Bachat account

A checking, basic low balance savings instrument. This product represents KMBLs standard savings
product. While there is no minimum balance requirements, profit is only be payable on balances
greater than Rs. 25,000.
Features
Initial deposit to open account is Rs.100/-
No account opening charges
Profit bearing checking account
High yield saving accounts

This product has been introduced to facilitate Micro and other entrepreneurs who wish to place funds
for short run due to their business seasonal cycles and who want to earn competitive profit. It
functions just like a regular savings account, and added benefit is higher profit rate as compared to a
regular savings account, upon maintaining a certain level of deposit balance.
Features
No Minimum balance requirement

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Free banking above RS. 1,000,000/-
Kashf Winspiration account

Is a term deposit account. Balances kept in this account are divided into three tiers: Rs. 1,000,001 to
Rs. 2,000,000; Rs.2, 000,001 to Rs. 5,000,000 and the third tier is for balances in excess of Rs.
5,000,001. The tenure for this product ranges from 1 month to 36 months.
Features
Minimum investment of Rs.1,000,001/-
Relationship Manager for each account
Rates
Rs 5000 and above
Term/profit frequency
Monthly
Quarterly
Bi-annually
1 month
3 months
6 months
12 month
10.50%
10.95%
11.15%
11.00%
11.25%
11.65%
11.45%
24 months
36 months
11.50
11.65%
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11.85%
11.85%
12.00%
Yearly
Maturity
10.50%
11.00%
11.50%
11.75%
12.00%
11.25%
12.50%
13.00%

Term
6 months
1 year
Rate
8.00%
8.00%
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6 month
1 year
Kashf muhafiz term deposit

Monthly
maturity
Monthly
Maturity
12.50%
12.75%
13.00%
13.80%
Kashf savings
On minimum monthly balance
6%
High yield saving account

Amount
0-25000
25001-100000
100001-500000
500001-1000000
1000001-above
Rate
0.00%
6.00%
6.50%
7.50%
10.00%
Outward remittance
Pay order
Demand draft
Cal deposit receipt
Fund transfer
PEST ANAYLSIS
Political and Legal
The countries in which banks are running their operations are strongly affected by the political and
legal considerations. Political and legal structure of a country is composed of regulatory agencies and
government law, which influence and limit various organizations and individuals. Habitually county
changing political environment create new opportunities for business.
There is a political instability in Pakistan, so the countries laws and policies changes continuously,
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that may be in favor or in against the banking sector.

Political structure of Pakistan has effect on banking sector as,
Employment practices are expected to change.

Political interference regarding policies is estimated to increase as current government is in
race of power gain.

Due to lack of confidence on government investor is reluctant so mobilization of funds is
going to decrease.
Government policies are changing day by day and government stability is also not there
Economic
Economy of Pakistan is facing many serious issues about
Employment
Inflation
Illiteracy
Which hamper the business growth

The banking environment for stability requires two important things;
Better consumer markets

Higher borrowing powers
The main risk for bankers is the declining value of Pakistani currency. Whenever our currency value
depreciates, it decreases the foreign reserves of banks and liabilities increases. There is a continuity
changing situations in
Interest rates
Labor policies
In Pakistan, Inflation is very high which will decrease purchasing power.
Staff cost is increasing as basic wage rate has increased.
Operating costs are increasing due to inflation.
Interest rate is increasing so loan taking has decreased.
Value of rupee is decreasing which is pressurizing the economy.
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Cost of doing business in Pakistan is increasing day by day so business activities are badly
affected and in return it has bad effect on working of Banks.
Social
Society is shaped by norms, values and believes. Social factors often look at the cultural aspects and
include health consciousness, population growth rate, age distribution, changes in tastes and buying
patterns. . So understanding changes in this area can be vital. Banking sector is very important for the
well being of the society such as the bank activity participating in the Prime Minister self
employment Scheme.
Social culture of Pakistan affects the banking sector as,
There is lack of experts in our country concerning management so for this reason innovative
activities are slow and conventional methods are adopted.

Pakistani people have very luxurious life style as compared to their income; people dont
prefer to save money so culture is not very supportive for banking sector.
Cultural strain to savings is the reason due to which investment remains low.
Decline in work ethics which is mainly due to poverty, lack of training.
Inadequate Accountability, lack of good governance and lack of good infrastructure helps
creditor to cheat and heavy bad debts occur. Same situation is hoped to prevail.
Inadequate Empowerment is also a usual problem in our organization as every person
Want to get more power hence there is less delegation of authority and decision making.
Technological
Advances in technology have a major impact on bankers success. Technology is vital for competitive
advantage. The changes in technology have greatly affected the banking sector of Pakistan. So we can
say that PEST Analysis is a perfect tool for the managers and policy makers that help them,
in analyzing the forces that are driving their industry and

How these factors will influence their banks and the whole industry in general.
Technological management has helped the Bank in providing multiple delivery channels to the
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customers and satisfying their needs anytime & anywhere in the world.
Organization structure
Chief executive
Mohammad Mudassar Aqil (CEO)
President
Roshaneh Zafar
Management committee
Farhan Haider (Head Business Banking)

Nuvin Jatala (Head IT & ADC)
Mahmood Shamsher Ali (Head HR & Training)
Mobeen Yaqoob (Financial Controller)
Noshina Bukhari (Head Operations & Banking Services)
Ommara Raza Ali (Head Research & Product Development)
Asma Irfan (Company Secretary/Head Legal & Corporate Affairs)
Numan Ali Amjad (Head Internal Audit)
Executive committee
Chief executive officer

Chief operating officer
Chief financial officer
BOARD OF DIRECTORS
Roshaneh Zafar
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Ms. Roshaneh Zafar is the Founder and Managing Director of Kashf Foundation the first
specialized microfinance organization in Pakistan established in 1996.
Zar Wardak, Chairperson
Zar Wardak serves FINCA as chief executive officer of FINCA Afghanistan and as regional
director of the network MESA (Middle East South Asia) region.
Margarita Cherikbaeva
Margarita Cherikbaeva joined FINCA in June 2011. Prior to this she worked for ProCredit, a
German bank holding company, supervising the work of ProCredit Banks in Central Asia,
Western Africa and Latin America.
Salim Khan
Salim Khan is the chief operating officer for FINCA Afghanistan, responsible for all operational
aspects of that Subsidiary, including product and services delivery, human resources, information
technology, risk management, and compliance with parent company policies as well as relevant
local regulations.
Volker Renner
Volker Renner brings more than 15 years experience in managing microfinance operations in
Eastern Europe and Central Asia. He most recently held the position of Regional Director for
FINCA Eurasia and Vice President. Prior to joining FINCA in 2004, Mr. Renner held positions as
CEO of ProCredit Bank (Ukraine), member of the Audit Committee of ProCredit Bank
(Georgia).
Rupert Scofield
Rupert Scofield, FINCA International President and Chief Executive Officer, is an agricultural
economist with 40 years of experience in the developing countries of Africa, Latin America,
Eurasia and the Greater Middle East. He also serves as President and CEO of FINCA
Microfinance Holdings.
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Head office
387-E johar town
Lahore Pakistan
BRANCH INFORMATION
I did my internship in Kashf micro finance bank limited Faisal gate Gujrat, some important
information about my branch is as follows
Gujrat branch
Branch name
Branch code
Address
Phone no
Province
Region
Email
Kmbl Gujrat
9-7-2
Faisal gate, circular road Gujrat
053-3523467
Punjab
Sialkot
Kmbl.gujrat@kmfbank.com
Management of branch
Designation
Regional manager
Branch manager
Operational manger
Customer services officer
Customer service officer
Credit risk officer
Asst.branch manager
Asst.branch manager
Team leader
Loan officer
Loan officer
Teller
Guards
Office boy
Name
Khizar hayat Awan
Sm Adil
Shumaila khan
Qudsia hina
Sana mujtaba
Muhammad hanif
H.muhammad nouman saleem
Azhar riaz
Saqib ali
Mujahid
Mohsin
Khawar
M.inam & munawar hussain
Sajjad
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Supervisors
During my internship at kmbl I worked under the kind supervision of the whole branch staff
including the Branch manager, Operation Manager and CSO Manager.
Period of internship: 25 July 2013 --- 9 September, 2013

Departments
Operation department
Lending department
Risk department
Liability department
Description of activities of department

One main and basic purpose of banks is to provide services to the general public. Now-a-days
banks play a vital role in the overall development of the country and the functions performed by
these banks are changed and enhanced. Kmbl where I did my internship is a micro finance bank
main activities performed by different departments of kmbl are as follows:
Operation department
Operation is all about customer care. I have learnt many things from this department Mr. Khawar
is teller he deals with cash on counter. Ms Sana and Ms. Qudsia are customer services officers
they deal the customer on front desk. Ms Shumaila khan asst operation manger she deals with
HR/Admin and other branch matters. I have learnt following things from this department
Account opening
Know your customer
Disbursement of loan files
Inward and outward clearing
OBC
Record keeping
Voucher statistic
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How to meet deadlines

How to manage work in pressure
How to serve to delight a customer
Lending department
Lending department is about loan distribution in market that work with the logo prosperity with
dignity the work follow of this department is as follows
Mobilization
File making
File completion
Credit risk verification
Disbursement of loan
Risk department
Mr. Muhammad hanif is credit risk officer in Gujrat branch he deals with clients who are going
to take loan from kmbl.
He verifies the clients business and also makes shore that client is fulfilling all the requirements
of kmbl. He also keenly studies the file and makes necessary change he has the authority to reject
any loan with following reasons:
If applicant is involve in fraudulent activities

If applicant is not the actual owner of the business
If applicant is going to miss-utilize the loan
If there is policy violation
Credit risk officer visits the files and if file is ok than he marks the file discrepant and handed
over the file to loan officer for necessary changes. Loan officer completes the file and then credit
risk officer mark the file ok to proceed then file is ready to disburse otherwise operations
department is not allowed to disburse any file. This department is a check in market and branch.
Liability department
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Liability department works for deposit, mobilization and business department
WEEKLY WORK
1ST WEEK WORK
Introduction:
Introduction of staff and Departments was given. Observed the business process. Observed the
activities of all the staff, especially with the help of my supervisor Miss Shumaila khan. She
guided me that how to fill the deposit slip and what is the purpose of these slips. I treated some
customers of deposit slips and practiced that how to fill online and deposit slips. Learned that
how to fill cheque, how to issue new cheque books and how to total the demand notices and
purpose of demand notice. Also deal the customers of deposit slips. Treated all the customers of
online and deposit slips. Filled the cheque books.
Important notice:
Some important things that must keep in mind while filling slips:
a. No cutting and overwriting is allowed in amount.
b. Amount should be same in words and figures.
Online deposit slip transaction

In on line transaction the process is so simple in this the client receives a request form from the
customer for online transactions. In such case customer presence is not compulsory.
In this the following requirements are necessary to keep in mind. These are:
1. Sender name
2. Senders account number
3. Bank and branch number
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4.
5.
6.
7.
8.
Check number (if the customer has account in that branch)

Beneficiary branch number and address
Total deposit and date
Signature of the sender
CNIC of the customer (if the customer dont have account in that branch of the bank)
When writing a cheque keep in mind that

a. No cutting/overwriting is allowed
b. Signature should be matched with the ID card signature.
c. On the back of the cheque there should be the sign of the issuer
2ND WEEK WORK

Account opening procedure
Opening of New Account
Account opening is the basic procedure which creates a relationship between a customer and a
banker. When a customer opens his/her account it increases the business of the bank and worth of
the bank.
Banks open different types of accounts for their customers according to their
requirements. Customers may be
Individuals (Single or Joint),

Firms (partnership/proprietorship),
Limited Companies,
Local Bodies.
Kmbl normally opens following types of accounts,

1. Current account
2. Saving account
3. Term account
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Basics to Open an Account

I learned a lot about the account opening procedure and requirements during my internship
period. Its an establishment of contractual relationship between the bank and the customer.
Further I am going to express the steps involved in the opening of an account.
Opening of individual account:

There are a number of rules and regulations that are followed in banking, and requirements
Checked before opening an account for people similarly kmbl like all other banks in Pakistan
make sure whether the person who is going to open the account in the bank is a desirable
customer or not. After that kmbl determines the integrity, respectability, occupation and the
nature of business of the perspective customers through the introductory references which is
provided at the time of account opening. This initial investigation of the people asking for
account is important to conduct carefully because if it is not properly done may result serious
consequences not only for the banker concerned but also for other bankers and general public.
All the necessary information which bank wants to know about customer is written in the form.
Opening an account for the partnership

Copy of CNIC
Copy of CNIC of all the partners
Request letter of account opening
Company letter head
Copy of registered certificate (if registered)
Signature specimen duly attested
After all these requirements, the authorized officer attaches two signature specimen forms called
SSC (Signature Specimen Card) and one requisition form. On which the authorized officer put
his/her signature and pasted signature admitted and verified and bank stamp on it.
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Along with this form the copy of CNIC and a VeriSys form and form known as (KYC) is
attached with it. At the last a separate file is maintained for each of the customer for banks
record.
In case of employed person

Copy of CNIC
Salary slip
A letter from employer
Initial deposit of Rs. 1000
Photo copy of utility bill
In case of non employed person

Copy of CNIC
Initial deposit of Rs. 1000.
Photo copy of utility bills
Issuance of Cheque Book

For withdrawing amount from account, a cheque book is provided by the bank to the customer.
When all the documents are checked then a cheque book is issued to the customer. The customer
brings the letter of thanks and gives to the authorized person. The person fills the check book
requisition slip for the customer and takes his signatures. Then the authorized person saves that
slip in his record and fills another slip and customer is asked to come after 5 days.
A cheque book contains 10, 25, 50or hundred leaves. There is a requisition slip in the cheque
book for the issuance of the new cheque book. This slip is duly filled and signed by the customer.
Bank verifies the signature of the customers and new cheque book is issued and serial numbers
of the cheque are entered in the book of the bank. Customer also has to write his full name and
address.
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Only one cheque book is issued at a time, however big concerns who need a number of cheque
books at a time, may ask the bank to stock as number of cheque books in their name and to point
their name on these cheque books.
Bank has a separate register for recording Cheque book inventory and cheque books issued.
Account number and the number of leaves are also recorded in this register. When the cheque
book issued an entry is passed in the cheque book issue register. The officer takes signature of
the customer and put a verify stamp on it with his on signature.
How to close an account?

Customer has the authority to close his account. For this customer has to submit an application
for closing the account.
Then the account is closed out. Account balance is paid to the customer. Cheque book is returned
back to bank. Officer cancels the remaining cheques in cheque book.
3RD WEEK WORK

Clearing
Nearly all the banks provide a wide variety of services to their depositors. Clearing also plays an
important role in performing the activities of the bank. The basic function of clearing is to
provide services to customers in collection of their cheque of other banks, whether they are in
city or outside the city. The customer can get the money in his account at kmbl from the cheque
drawn on another bank. The bank accepts the cheque in the clearing which it is drawn through
the clearing house i.e., SBP.
Clearing is the transfer of funds from one branch of bank to the other branch of the same bank
or the other bank on which the instrument is drawn, without involving cash through State
Banks clearing house or we can say in other that cheques which cannot be cash at the cash
counter of the bank.
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Types of clearing
Outward clearing
Inward clearing
Outward clearing:
Similarly cheques which are drawn on other bank and presented to kmbl my branch are known as
outward clearance for my Branch. So outward clearing results in inflow of funds from paying
bank into the clearing account maintained with clearing house increasing the balance in the
clearing account.
In case of outward clearing the customer give cheques for collection and receive deposit slip. In
clearing register the details about the account title, account number, amount of transaction,
drawee bank and instrument number is written. Then different stamps are put on the instruments
and deposit slips such as crossing stamps, clearing stamps and endorsement stamps. The amount
of these cheques is credited to the customers account but if the cheque is returned it is again
debited along with cheque. Then all these cheques along with the summary /delivery report (2
copies), bundle cover, clearing and add list are attached together and all this put in a bag. NIFT
representative come daily after the bank timing to take this bag to the branch of kmbl. Officer
after checking cheques, make badges in the system and credited the customers account.
Inward clearing
Cheque drawn on kmbl, presented to other Banks or handed over to kmbl in clearing house. That
is inward clearance for Kashf micro finance bank. So inward clearing results in outflow of funds
to collecting bands reducing the balance in the clearing account.
Cheques are brought daily in morning to the branch. Officer debit the amount from the account
after checking the following,
Signature specimen
Account balance
Proper discharge
26
Date etc
If the cheques are passed but if the cheque is not passed then it is returned along with cheque
return memo in which reason is written why cheque is returned. All the transactions are recorded
in a register for keeping banks records. At the end officer makes badges in the system and
debited the customers account.
Inter city clearing

Inter city includes big or major cities of Pakistan like Islamabad, Lahore etc. it is also recorded in
the same clearing register but to differentiate intercity stamp is used. Then these cheques are sent
in special envelop provided by NIFT to the main branch. The cheque is usually cleared in third
day.
In Gujrat Branch of kmbl the intercity clearing is considered out of the Gujranwala district. All
the cheques which are received from other banks but are outside the Gujranwala district are
considered in the intercity clearing. Like cheques from Lahore, Islamabad and Karachi are
considered in the intercity clearing.
Types of Cheques Collected
Transfer cheques: transfer cheques are those cheques, which are collected and paid by
the same branch of bank.

Transfer delivery cheques: transfer delivery cheques are those cheques, which are
collected and paid by two different branches of the same bank situated in the same city.
Clearing cheques: clearing cheques are those cheques, which are drawn on the branches
of the other banks located in the same city or in the same area. And which is covered by a
particular clearing house.

Collection cheques: collection cheques are those cheques, which are drawn on the
branches of either the same bank or of another bank, but those branches are not in the
same city or they are not the members of clearing house
27
Function of Clearing
First important function of clearing department is to accept transfer, transfer deliveries

and clearing cheques from the customer of the branch and to arrange for their collection.
Another important function is to arrange the payment of cheque drawn on the branch and
given for collection to any other branch of kmbl or any other members, or sub-members
of the local clearing house.
To collect amounts of cheques drawn on members, sub-members of the local clearing

house, sent for collection by kmbl branches which are not represented the local clearing
house. Bank charges some commission of these facilities. Now a days clearing is being
supervised and conducted by a private company NIFT.
4TH WEEK WORK

Remittance
Remittance is the monitory transfer from one place to another place or from one country to
another country to fulfill the requirements of the customers by the order of the customer, through
legal means.
Remittance can be either domestic or international. Remittance can be divided into two sections
due to its activities.
Types of Remittance
Inward Remittance:
The branch receives the instrument directly from the customer or from the originating branch,
and is responsible to pay to part is called inward remittance.
28
Outward Remittance
The branch, which issue or sold the instrument to the responding branches, called outward
remittance.
Parties:
The parties involved in remittance process are,
Applicant
Beneficiary
Intermediaries like bank or Remittance Company
Functional Importance
Remittance is cheap as compared to other modes of remittances i.e. money order. Normally any
amount can be remitted through banks. Important source of earnings i.e. commission, service
charges, and FED. The risk involved in physical transportation of money is eliminated. Its a safe
and secure method of making payments to others.
Modes of Payment
Demand Draft (DD)
Pay Order (PO)
Telegraphic Transfer (TT).
Demand Draft (DD)

DD is a written draft drawn by the branch of the bank on the behalf of the customer to other
branch of the same bank for the purpose to pay the certain amount to the customer. DD are
issued for the particular place other than place of issuance.
29
DD is just like cheque and issued when the customer does not want to take cash with him
personally. DD is just to avoid the risk and burden of currency notes in huge quantity. Demand
draft easily be handled, whatever amount it has and the money can easily be taken from the bank,
when it is presented. In fact, to avoid the risk of frauds, the bank forces the customer to transfer
money by drafts. Drafts are issued only when the bank knows customer and bank has the
confidence in him.
Pay Order:
Pay order is a written order issued by the bank drawn and payable on itself. Customer must have
the account in pay order issuing bank. Pay order are more liquid as compared to cheques because
cheques may be dishonored while PO cant be. Pay order is used for local transfer of money
from one person to another person.
Procedure of issuing DD and PO:
If a regular customer wants to make DD or PO then in this case, customer has to fill up a
form. This form is known as FUNDS TRANSFER FROM on making this DD/PO
In the form all the mandatory places are compulsory to fulfill. Like, currency of
instrument, type of remittance, beneficiary details, particular of applicant, applicant
signature etc. these are such requirements that must be fill up.
And at the last the authorized officer puts his/her signature on DD/PO form and three
stamps are pasted on it;
a) Transfer stamp
b) Signature verified stamp
c) Crossing check stamp (in case if half payment is made through cash form, then a
check is fill up for this and attached with the DD/PO form)
And at the last the operational manager puts supervision on this and all the records are
transferred into computer for bank records. And at the final stage, all the transactions are
recorded in a register for keeping banks records.
30
5TH WEEK WORK

Cash department
Cash department provides different facilities to the customers such as receive cheques, receive
cash, pay cash, online transactions, collect bills etc. cash department maintains following books.
1.
2.
3.
4.
5.
Receiving Cash Book

Paying Cash Book
Token Book
Scroll Book
Cash Balance Book
When cash is received at the counter, an entry is made in the Scroll Book and Receiving Cashier
Book. These two are balanced with each other at closing.
When the cheque or any negotiable instrument is presented at counter for payment, it is entered
in the token book and then token is issued to the customer. After that the token clerk and the
Cashier make entries in the paying book and payment is made to payee. Then the Token Book
and Paying Cashier Book both are balanced at the closing.
The consolidated figure of receipt and payment of cash is entered in the cash balance book and
then drawn closing balance of cash.
Opening Balance + Receipts - Payments = closing Balance.
In Cash department customer after filling up the cheques give it to the authorized office. The
following information is required for further proceeding of the cheque.
Name of the customer

Exact amount in words
Date of the cheque
Signature of the Customer
After providing all the above mandatory places check is hand over to the relevant person.
The authorized person after receiving Cheque puts bank stamp on it
1. Checks the balance of the customer account
2. Verify the signatures of customer
3. Then gives the cash to the customer
31
The consolidated figure of receipt and payment of cash is entered in the cash balance book and
then drawn closing balance of cash.
OPENING BALANCE + RECEIPTS - PAYMENTS = CLOSING BALANCE
This section of general banking is very important because cash is the most liquid asset and
mostly frauds are made in this department, therefore, extra care is taken in this department and
nobody is allowed to enter or leave the area freely. Mostly, cash area is grilled and the doors of
this area are under supervision of the head of that department. All the books maintained in Cash
department are checked by an officer.
Utility bills collection:

Kmbl only collects utility bills on behalf of Sui Gas Companies, by putting the stamp on the
utility bills Paid, Date of payment, Signature of the officer receiving the utility bills.
I worked in the utility bills collection department and collect bills from the customers. After
receiving utility bills from people a list is made on the form which is called Bills scroll form.
One copy of the scroll is held with the bank for evidence whereas the original copy with the
receipt of the bills is sent to the billing department of the respective corporation. The bank charge
commission on the bills for collection.
6TH WEEK WORK

ATM Service
Kmbl ATMs services not only provide convenience and flexibility to customers but also help the
bank to reduce work load and cash handling cost at the branches counters. Kmbl offers ATM
facility to its customers.
A form is filled by customer where the basic information about the customer and if he
wants supplementary card, the details about that supplementary is given.

It is checked by the officer and sent to the head office.
Head office sends the card to the customer at the address given by the customer.
32
Pin code is held by the customer.

Then customer will come to the branch take pin code and the card become active.
1st time he has to use the card in the bank timings.
Charges for this facility are taken on annual basis.
ATM card charges:

Issuance charges: Rs.250/Annual renewal fee: Rs.250/-
TASKS ASSIDNED TO ME
During my internship at kmbl, Faisal gate Gujrat Branch I was assigned with different tasks such
as
Issuing Deposit Slips to Customers

Worked in clearing department, received cheques from customers and issued deposit slips to
them.
Fill the online fund transfer applications

During my internship period I filled online fund transfer applications on various times on the
behalf of customers. I learned about different scheme of charging charges of online transfer
money for the applicants.
Opening of an account
I have learned about different types of accounts that kmbl offers to its customers and the
requirements for opening a new account. Then I learned about the process of account opening.
33
After having a complete knowledge, I opened two individual accounts. My supervisor taught me
the whole process.
Vouchers
I made different vouchers day to day. I prepared debit vouchers for cheque book issuance, for
branch maintenance services, petty expenses, cheque return, lockers etc.
Issuance of cheque book

Customer is provided with the cheque book for withdrawals from the account. The first cheque
book is issued to the customer after checking all the required documents. I issued cheque books
to the customers. I wrote account title and account number on cheque books, prepared their debit
vouchers. Then I entered date, account number and title and number of leaves in the cheque book
issuing register. When customer comes with later of thanks, I took signature on the register and
officer verifies it. Then I issued cheque book to him.
Making Entries in Clearing Register

I also worked in the clearing department. I made entries in the clearing registers (inward and out
ward clearing registers) and record the following information in the register
Name of the favoring party

Name of the bank on whom drawn
Account title
Account number
Cheque number
Amount of transaction
I also made intercity clearing. For Intercity Clearing a stamp of intercity posted on face of bill,
then amount, account number and city name is entered in a separate register and deposit slip is
attached in a specific file. And a stamp is posted on back of bill. A separate slip is filled for every
34
city given by NIFT. In the specified envelope is used for every city given by NIFT with printed
name of city.
If inward clearing is more than the out word clearing then it is against the bank. But if the
outward clearing is more than the inward clearing then it is in favor of the bank
I returned some cheques on the basis of different reasons by attaching cheque return memo and
recorded the entries in cheque return register by attaching one copy of memo.
Working as Customer Service Officer

I also worked as Customer Service Officer and provided the people with the general information
about how to open an account, how to fill up the form etc. I was also assigned a task in which I
have to call the customers to take their cheque books from the bank.
Issuing of ATM cards

I also issued ATM cards with the help of my supervisor both for current account holders and new
ones. I also recorded account number, name and address, date of ATM issued with ATM card
number in the register for the evidence.
LEARNING SUMMARY
According to the requirement of MBA fianc (3.5 years) degree, it is necessary for each student
to gain the practical knowledge of six week internship. I chose the kmbl for internship for
gaining basic knowledge of banking sector. I did my internship in kmbl Faisal gate branch.
It was such a great experience for me to work with such a well known and reputed bank. The
internship proves very valuable for me as it not only enhances my skills and qualifications but
also gives me experience and brings clarity in my future plans.
35
When I started my Internship I was a little bit confused as it was my first chance to do practical
work in any organization. But with the help and cooperation of the staff of the kmbl Gujrat
Branch, I learnt a lot about the banking field and tried my level best to get the maximum output
from the time available to me.
I gained a number of skills that will be beneficial for me in my future career some of these are
Enhanced my confidence level.

Strengthen my interpersonal and communication skills.
Improve my abilities how to deal with the customer and how to behave with the staff
members.
Helped to improve team work and leadership skills.
It gave me a lot of confidence and manners to behave in the working environment.
Improved time management skills and made me punctual.
It helps me to understand how to behave in different situations professionally.
It made me think critically in difficult situations and act accordingly.
Improved my decision making capability.
After doing internship I acquired good work habits
During my internship period I have worked in various departments of the bank like account
opening department, remittance department, cash department, clearing department. I learned the
working of these departments. My supervisors taught me all those things. I learned about
different forms, vouchers, applications, advices, stamps and record keeping of the bank. I
understood different procedures and process of the activities of the bank.
I was assigned by different task and duties. Which I fulfilled interestingly with the help of
my supervisors.
I filled deposit slips, vouchers, and online fund transfer applications.
I learned how to open a new account. And all about the documents which are necessary
for the account opening.
I work as a SCO and deal with customer. I was assigned a duty to call the customers to
take their cheque book from the bank. I also attended the phone calls and listened the
complaints of the customer.
I worked with the remittance officer.
Clearing officer assigned me a task to made entries in the clearing registers.
I also issued checkbooks to the customers.
36
Collection of utility bills was another interesting task assigned to me.

By working in all these departments I enhanced my knowledge. I also observed that how
different rules and regulations are too much important for the efficient working of the
organization and how each and every person perform his role in making an organization
prosperous.
Internship provides opportunities to experiment and purse careers that match academic and
personal interest. Planning about the career is always difficult as there are many doubts regarding
different possible opportunities and it is really difficult for the students to select the best possible
place for their future job because they do not have enough knowledge about different work
settings, they do not have the experience that can provide help to them in attaining the best
possible job alternative. So in this situation internship programs provides great help and gave the
students and the people who are looking for jobs for the first time, the opportunity to select the
best field in which they can show their full potential, can better utilize their skills and
knowledge, and most importantly that matches and suits to their temperament .
Universities provide opportunities to teach you the theoretical knowledge, that will be
implemented in your future practical life but there is great difference in theoretical and practical
knowledge that is why students face difficulties in the real situation in adjusting in the
practical environment of the organization. So being a student I encountered different sorts of
problems that was challenging for me.
I am always interested to get job in banking sector. But do not know what tasks bankers do, their
duties, timings etc. By this internship my doubts vanished. Now I have a clear vision about my
future. This internship brings a great change in me. I have learnt punctuality and the significance
of time in an organization. I have realized that time management is the most important element at
working environment. My practical learning has taught me to prioritize and organize my work
according to schedule that enabled me to complete my tasks in the allotted time.
37
My personal view about banking environment is that its a very good and safe for females. I
critically analyzed the banking sector as a whole and I can openly say that banking sector
provides conductive environment for career growth. After completing my education I will look
forward to join a well reputed bank like kmbl because I feel that the banking sector is where I
can better utilize my academic and personal interests.
Choosing kmbl for my internship was really a good decision and it created a big worth for me. It
was a very rewarding experience to work in such a disciplined organization with highly
experienced and cooperative staff. I really gained very beneficial knowledge about banking
during my 6 weeks internship and also enjoyed working with experienced and intelligent staff.
SWOT ANALYSIS
Strength
It can provide the loan to the individuals who are below the poverty line and cannot able
to access from the commercial banks

By providing small loans to this people Micro finance helps in reducing the poverty.
For borrower there are many small and medium size MFIs are available in even remote
areas.
Kmbl have experienced and skilled staff.
Its performance is improving day by day
Kmbl is continuously trying to develop new and innovative products to attract their target
market
It has strong culture and has professional staff
Customer relationship of kmbl is very strong.
Asset utilization of kmbl is very efficient.
Weaknesses
Rules and Regulation of Micro Finance Institutions are not regulated properly.
38
In the absent of the rules and regulation there would be high case of credit risk and
defaults.
High number of people access to informal sources
Level of job satisfaction of employees is not good
Majority of the people are not well aware off its products.
To give everyone equal protocol is lacking among employees Customers having account
with small amount are not given same services like dealing to others who have high
account.
Promotions of employees are generally done on seniority basis.
Opportunities
Micro Finance helps the poor people by not only providing them with loan but also helps
them in their business.
Micro Finance helping in increase the employment opportunity for them and for the
society.
Many Pvt. Banks are shying away from to serve the people are unable to access big loans,
because of the high intervention of the Govt. but the door open for the Pvt.
Greater profitability can be achieved through strong internal control.
Flexible environment provides many opportunities for the growth.
Although provide services to their existing customers, but word of mouth can also be
helpful in increasing the number of customers to have a competitive advantage over
its growing number of competitors.
Professional training is given to the staff which gives elimination to the risk of fraud.
Threats
The formal source of finance through Micro Finance is beginner, and the rules are also
not properly placed for it.
39
This is the biggest that threat that many MFIs are facing. Because the excess of anything
is injurious, so in the same way the excess involvement of Govt. is a serious threat for the
MFIs.
Current economic situation of Pakistan is a threat for banking industry
Mergers & acquisition activities are getting fame in Pakistan day by day, and
consolidating the banking sector

Political uncertainty in Pakistan and poor law and order situation are also big threats for
the working of bank.

Cost of doing business in Pakistan is increasing day by day so its very hard to compete
with financial sector.

Political instability in Pakistan is also a great threat for operations of the bank
Strong competition in banking industry in Pakistan.
Deposit rates are increasing day by day
RECOMMENDATIONS
Kmbl is performing well, can be judged through its financial data and profitability ratios. Its
deposits are growing and also its profitability. Following are some recommendations and
suggestions for the better working of the bank.
Open communication should be there. In which every employee who has some problems
with his officers can communicate it to the higher management and some steps must be
taken to improve that.
There is no proper timing about the bank and unnecessary delay in transactions. Bank
should have to improve this for future prosperity of the bank.
Recruitment must be on merit basis and training should be after proper and extensive
training.
Old and lazy staff should be replaced by young and qualified staff.
Working environment, equipment, furniture and staff dressing should be according to the
modern banking style.
40
Mismanagement of resources must be avoided as much as possible as it decreases profit

but also discourage hard worker and honest employees.
Proper attention should be paid to upgrade customer services.
Bank should adopt the global organizational banking structure to meet the international
standards of banking sector.
Refresher courses for the staff are most important for them to increase and enhance their
knowledge.
CONCLUSION
KMBL has completed 5 years since its privatization, it is evident from its continuing success that
Kmbl is making progress by leaps and bounds. All of its success is purely based on its
management capability, its Directors and, in no small measure, to the entire KMBL team for its
dedication, concerted efforts and excellent team spirit.
Therefore, I conclude that KMBL has a very prosperous present and future, which assures the
shareholders of wealth maximization. There is always room of improvement in each and every
thing. No doubt KMBL is performing very well but I think that if bank would be able to cover
and control on the below mentioned recommendations then it would be in such a situation that
will really lead it towards the road of prosperity, development and integrity.
KMBL is performing well but some hurdles regarding customers and staff are also there. For the
proper working of the bank customers should also cooperate with the bank which will be really a
good, ambitious and diligent condition for the bank. Hence, KMBL can better perform and
position itself for to compete its competitors in the country.
References
http://www.kmfbank.com/
41
Guide lines from ms shamaila khan operational manager at Kashf micro finance bank limited,
Faisal gate Gujrat
42

KMBL Gujrat Internship Report

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Internship report on kmbl

INTERNSHIP REPORT ON KMBL

Internship report on kmbl

Internship report on kmbl

permanent commitments are made.

Internship report on kmbl

It will provide students knowledge of the formal functional activities of practicing

Kashf Micro-finance Bank Limited (KMBL):

Internship report on kmbl

Kashf holdings (Pvt) limited

International finance cooperation (IFC)

Shore cap international, limited

WWB microfinance equity fund

Internship report on kmbl

Growth by formation of sustainable relationships with customers.

Caution to guide our business conducts.

Give the business and personal loans to the customer

Kmbl shall work to

Meet the expectations by Market-based solutions and products.

Reward for entrepreneurial efforts.

Creation of value for stakeholders.

Kmbl aim to be peopling who

Concern about relationships.

Do integrity, sincerity and hard work.

Kmbl have confidence that tomorrow we will be

Leaders in our industry.

Internship report on kmbl

An institution maintaining the confidence of stakeholders.

A revolutionary, motivated and energetic institution responding to the changing needs of

To provide solutions for multiple requirements of clients of diverse financial nature.

To provide employment opportunities to people.

To help in development and industrialization of the country.

Internship report on kmbl

Internship report on kmbl

To meet working capital or fixed assets requirements only.

Second Loan Cycle:

Third Loan Cycle:

Second Loan Cycle and beyond:

Deposits products &accounts:

Kashf Tahaffuz term deposit

Kashf Tahaffuz term deposit

Internship report on kmbl

Minimum investment of Rs.5,000/-

No account opening and closing charges

No minimum balance required

Kashf Kamaal committee

Minimum investment of Rs.500/-

No account opening and closing charges

No minimum balance required

Kashf Sahulat account

Internship report on kmbl

Initial deposit to open account is Rs. 100/-

No account opening charges

No minimum balance required

Kashf Ahtimad Bachat account

Initial deposit to open account is Rs.100/-

No account opening charges

No minimum balance required

Profit bearing checking account

High yield saving accounts

No Minimum balance requirement

No account opening and closing charges

Internship report on kmbl

Free banking above RS. 1,000,000/-