1.

1 Background of Zarai Taraqiati Bank

The Zarai Taraqiati Bank Limited is the premier financial institution geared towards the
development of agriculture sector by providing financial products and services to their
customers. It is a common practice at universities during the completion of the masters and
bachelors program to attain practical experience in different fields. Students are required to
undergo an internship program of two months to fulfill the requirement for their degree
completion. The selection of the firm is based on the choice of the student. The institute requires
an internship report based on the theoretical and practical learning of the student. The Internship
is the bridge between academic qualification and professional career of fresh graduates.
This internship report is mainly focused on the working of the Finance and Accounts Division of
the ZTBL. Moreover, the internship is a unique aspect of education that integrates study with
planned and supervised career-related work experience. The students are involved as non-paid
authentic employees receiving academic credit for work experiences. The purpose of the
internship program is to develop and strengthen the students educational and career preparation.
By doing internship in any organization that obviously exposes the interpersonal relationships
not only with employees but also with supervisor that are essential in obtaining a successful and
satisfying career. This background of the study is mainly focus on the performance, functions
and objectives of the Finance and Accounts Division of the ZTBL and its internal working and
operations of this division. While, the internship is any experience where students learn by taking
on responsible roles as workers in organizations and observing and reflecting on what happens
while they are in the workplace.
It provides many advantages to student that helps him throughout his life. Some advantages
of internship program are given as under:

To gain professional experience and receive academic credit

To enhance independence, responsibility and self-confidence

To Interact and collaborate confidently with employees

To share ideas with one another.

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To translate classroom knowledge into the professional work environment and to make plan,
how to carry the activities.

1.2 Corporate Information

1.2.1 Board of Director

Syed Yawar Ali

Chairman

Syed Talat Mahmood

President/CEO

Mr.Saeed Ahmad
Director

Mr.Majyd Aziz Balagamwala

Director

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Mr.Zia-ul-Mustafa Awan
Director

Mr.Abdul Bari Tareen

Director

Mr.Asif Sharif
Director

Mr. Muazam Ali

Company Secretary

1.2.2 Board Audit Committee

i.
ii.
iii.
iv.
v.

Mr. Zafar Iqbal Chairman

Dr. Amir Muhammed Member
Dr. Khalid Ahmad Khokhar Member
Mr. Abdul Wajid Araim Member
Chief Internal Auditor Secretary

1.2.3 Board Human Resource

i.
ii.
iii.
iv.
v.
vi.

Mr. Abdul Wajid Arain Chairman

Mr. Muhammad Iftikhar Khan Mohmand Member
Dr. Amir Muhammed Member
Dr. Khalid Ahmad Khokhar Member
President, ZTBL Member
Head Human Resource Secretary

1.2.4 Board Risk Management Committee

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i.
ii.
iii.
iv.
v.
vi.

Dr. Amir Muhammed

Chairman
Mr. M.Yaqoob Vardag Member
Mr. Muhammad Iftikhar Khan Mohmand Member
Mr. Zafar Iqbal Member
Mr. Muhammad Nawaz Shah Member
Head, RMD
Secretary

1.2.5 Information Technology (IT) Committee:

i.
ii.
iii.
iv.
v.

Dr. Khalid Ahmad Khokhar Convener

Mr. Mahmood Nawaz Shah Member
Mr. Zafar Iqbal Member
Mr. Muhammad Iftekhar Khan Member
Mr. Muhammad Yaqoob Vardag Member

1.3 Organization Hierarchy Chart

The organizational structure of the ZTBLis shown in below diagram;

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1.4 Vision, Mission & Values

1.4.1 Vision Statement
To develop and operate the ZTBL as a commercially viable bank with focus on rural and agriculture finance
and to serve the needs of farming community, by delivering financial products and services.

1.4.2 Mission Statement

To play an 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,

products&

services,

and

to

promote

career

development

opportunities

for

increasing professionalism, technical proficiencies & trainings of employees.

1.4.3

Core Values

1.5

Loyalty to ZTBL Vision and Mission

Integrity and Meritocracy
Quality and Efficiency
Well-Trained Human Resource
Credit with Technology

Scope of the Study

The scope of the conducting this study is given as under:

It is a compulsory requirement for the award Masters Degree in Business Adminstration

This report is concerned with the performance, functions and objectives of the Finance &
Accounts Division of the ZTBL Multan Branch.

It will help the students in making assignments and writing reports on the ZTBL.

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It can provide help to the management of the ZTBL in identifying their Strengths,
Weaknesses, Opportunities and Threats.

It can also provide assistance for the students in seeking annual reports for the purpose to
calculate and interpret financial ratios, in order to check the liquidity, leverage and
profitability of the ZTBL.

Furthermore, students are able to analyze the human resources & analyze the marketing of
products and services schemes that the ZTBL provide his customers.

1.6 CORPORATE OBJECTIVES:

To assist rural community, particularly the small farmers, in raising their productivity and income
levels through timely delivery of credit, advisory and ancillary services.

To build the image of the ZTBL as a proactive, client friendly, financially & operationally sustainable
with indigenous product deployment.

To establish and provide backward and forward linkages to strengthen the agriculture and industrial
sector.

The ZTBL can engage in public and private, wholesale and retail partnership to deepen outreach and
reduce operating cost.

The ZTBL act as rural commercial bank to mobilize rural capital formation and to commercialize the
agriculture sector by delivering the true value of credit to the client.

Brief introduction of the branch where I did my internship:

I have completed my internship at Zarai Taraqiati Bank LTD Abdali Road Multan.
The Zarai Taraqiati Bank LTD Abdali Road Branch has many customers like Farmer as well
as outside of the area. Abdali road branch has good value in the area. It has good assets worth
and good profit ratio.

Starting and ending date of internship:

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I started my internship from June 29, 2015 and end of internship was on August 07 , 2015 at
ZTBL Multan Abdali road branch. My internship duration is of 6 weeks. I feel very lucky
myself as internee there as all the staff is very cooperative and friendly to me in my internship
duration. Because of this I learn and achieve all the knowledge very easily and free of burden.

Branch Staff:

Mr. Ch, Muhammad Saeed (Branch Manager)

Mr. Musharaf Waseem (Deputy Manager)
Mr. Ammar Yasir (AMO Operation)
Mr. Kamran Saquib (Officer Grade 3)
Mr. Rana Waqar Ahmed (Senior Assist)
Mr. Mubasir ahmed(Cash Officer)
Mr. sarfraz (AVP)

1.7 Name of Departments in which I got training:

1.8

Credit Administration Department(ACD)

Account opening Department(AOP)
Budget and Fund Reconciliation Department(BRD)

ZTBL Banking Products & Services

1.8. Products offered to Meet Finance Need of Farmers

Zarai Taraqiati Bank Limited (ZTBL) is a specialized bank providing agricultural credit in rural
areas of the country. Pakistan is an agricultural country and near about 60% of its population is
working directly or indirectly related to agriculture industry. But instead of being an agricultural
country Pakistan is still not gaining benefits from this sector which it can gain. Some time we
even does not able to fulfill our food requirement and sometime we have bumper crop but does
not have facilities to store them properly, in this way we are wasting our resources. To gain
benefit from agriculture sector it is required to be modernized to increase the per acre production
and also to build warehouses to store. The main hindrance in the modernization of agriculture is
the unavailability of finance. The other financial institutions feel reluctant in giving finance to
farmers due to high level of risk in the production of this field. To facilitate farmers and to help
in modernization of agriculture sector the government has established this bank which is
contributing its part in achieving government objective from many decades. ZTBL is offering a
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blend of products to fulfill the need of different types of customers.

1.8.1 Types of Loans Advanced

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. Medium Term Loans

Medium term loans are for a period of more than a year but less than 5 years. In includes,
dairy farming and livestock etc. The installments of these loans are usually paid able in
quarterly or half yearly basis.

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,
godowns and orchard in yearly/half yearly installments within maximum period of 8
years.

1.8.2 Deposit Schemes

i.

ii.

iii.

Current account
Rate of Return
Nill
Terms & Conditions
1.Initial deposit is Rs.200/2.Un-remunerative charges @ Rs.50/- pm shall be deducted on half yearly basis.

PLS-SAVING A/C (Regular Saving A/c)

Rate of Return
6.5% pa

Terms & Conditions

1. No initial deposit.
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 (Special deposit A/C)

Rate of Return

Terms & Conditions

1. Initial deposit is Rs.10,000/-

6.5% pa

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iv.

v.

vi.

vii.

viii.

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 (Special deposit A/C)
Rate of Return
6.5% to 7.5% pa (slabs placed )

Terms & Conditions

1. Initial deposit is Rs.10,000/2. 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
Rate of Return
Nill
Terms & Conditions
1. Min. initial balance is Rs.1000/2. It is non-remunerative a/c.
3. Max. two deposit & two chequing withdrawals during a month are free of charge
PLS-TERM DEPOSIT ( slab rates per circular )
Rate of Return
6.5% to 7.5% pa (slabs placed)
Terms & Conditions
1. Min. initial balance is Rs.1000/-.
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 DEPOSIT CERTIFICATE (ZMTDC)
Rate of Return
7.5%

Terms & Conditions

1. Initial deposit if 0.100 million.
2. Scheme is restricted for Bank 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 A/C
Rate of Return
7.5%
Terms & Conditions
1. Short term deposit scheme for a 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

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applied.
ix.

x.

xi.

ZARAI TERM DEPOSIT CERTIFICATE (ZTDC)

Rate of Return
7.10 % pa
Terms & Conditions
1. Minimum deposit is Rs.25,000/2. Scheme is for a fixed period of 3 years.
3. Minimum holding is 3 months
4. If depositor maintains Rs.2,00,000/- for at least months he will be elibible to get agri.
Loan from ZTBL without any appraisal fee
MINFA REVOLVING FUND DEPOSIT A/C. (MRFDA)
Rate of Return
7.5% pa
Terms & Conditions
1. Minimum deposit is Rs.500/2. Introduced for village organizations only.
MINFA SPECIAL SAVING DEPOSIT A/C (MSSDA)
Rate of Return
7.5% pa
Terms & Conditions
1. Minimum deposit is Rs.500/2. Introduced for village organizations only.

1.8.3 Loan Schemes

ZTBL is offering the following loan schemes to the farmers.
Supervised agriculture scheme:
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 provided to the farmers for planning the farm, production,
guidance for implementation of the scheme, marketing and repayment of loans.

Zarkhaiz (one window operation)

For timely and conveniently provision of credit to purchase inputs, loans are provided to the
borrowers under One Window Operation being conducted twice a week during Rabi and Kharif
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seasons. Applications processed on the same day whereas sanction payments are made within
three days at Branch. For Rabi Crops one window operation from October to January and for
Kharif Crops from April to September each year which is extendable as per requirement of
particular area.
Sada Bahar Scheme
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. Schemes main features are as under:

Revolving Credit Limit is fixed to cater production credit and ancillary requirements of
the farmers during one year period.
The documentation once completed remains applicable for three years with yearly
cleanup/renewal without any further documents.
The borrowers can draw the credit in lump sum or in installments according to his
requirement.
Like-wise he can repay in lump sum or in installments during the year when his cash
position allows him.
Pass Book containing transactions in his SBS Account is supplied to every borrower free
of cost.

Tea financing scheme

In order to increase the tea cultivation in District Mansehra, Swat, Mutta, 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 socio-economic condition of the
inhabitants of the area. The salient futures of the scheme are given as under:

Maximum Credit Ceiling of Rs.60, 000/- per acre has been fixed.
Farmers owing land up to five acres are eligible to avail loans.
Credit will be given in 3 installments: first year Rs.30, 000/-, 2nd year Rs.15,000/- 3rd

year Rs.15,000/- provided the disbursed loan is used properly.

The credit would be repayable within 1 year with 6 years grace period with prescribed
markup of 9% per annum. Rebate of 1 % will be allowed in mark-up on timely
repayment and proper utilization of the loan.

1.8.4 Repayment Periods

S.

Types of

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Recovery Period
Page 11

No.
1

Loans
Short Term
Loans

Medium Term
Loans

Long Term
Loans

Crop production working capital loans recoverable in lump

sum commencing after the harvest/marketing of respective
crops and within maximum period of 12 months.
Dairy farming and livestock etc. In yearly/half
yearly/monthly installments and within maximum period of
5 years.
Tractor, agricultural machinery, poultry farming, godowns
and orchard iIn yearly/half yearly installments within
maximum period of 8 years and. above.

1.8.5 Recovery Procedure

A) Recovery Schedule
Recovery schedule in each loan case as per terms of sanction of loan is fixed and
communicated to the borrowers after disbursement of loan.
In case of default or failure in repayment of any installment on due date the mark-up shall
continue to be charged and last installment due to this may differ from the amount of
installments fixed at the time of disbursement.
b) Issuance of Notices
Demand notice is issued before the due date of every installment.
A Legal Notice is issued one month after the due date informing the borrower that if the
amount is not repaid within next one month, further legal action will be taken to recover
the dues.
c) Legal Action
Legal action can be initiated against the defaulter if loan is not repaid even after expiry of
legal Notice period.
Where the court in bank's favour has decreed a case, account is to be settled by recovery
of amount from the auction of the mortgaged property.
The bank may purchase the mortgaged property if considered feasible to dispose it off
later on through auction or in any manner deemed fit for getting the best price.

The bank may dispose off the mortgaged properties of defaulters

for satisfaction of its dues with out intervention of courts under
Financial Institutions (Recovery of Finances) Ordinance
2001.Rescheduling of Loan Repayment Facility .
d) Rescheduling of Loan Repayment Facility
ZTBL allows rescheduling of repayment of installments 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
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The Rescheduling facility is to be considered by bank on 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 borrowers shall have to execute a supplementary loan agreement on Non Judicial
Stamp Paper of appropriate value to give legal cover to extended period.
The borrowers shall have to pay the return for the extended period.

d) Down Payment for Rescheduling of Loans

Rescheduling Number

Rate of down payment as against due

installments to be rescheduled
10%
20%
30%

1st
2nd
3rd

1.8.3 Types of Security

Immovable Property

Agricultural Land

Under Pass Book System 80%

Outside Pass Book System 70%
Under Alienability Certificate 66%
Commercial/Industrial Land under Pass Book 80%

Outside Passbook System

Urban Residential/Commercial Plots in all localities outside Pass Book 75%

Alienability Certificate 66%
Residential/Commercial Buildings 70%
Lease hold rights of a leased land of CDA/KDA with 99 years lease 70%
Moveable Property and Guarantees

1. Unconditional Bank guarantee from scheduled Banks

Up to maximum amount of an un-conditional Bank guarantee after keeping sufficient
margin for un-paid mark-up, cost, charges and expenses.

2. Guarantee issued by Central or Provincial Government

Full amount of loan plus return and other charges.

3. Government securities
85% of face value or market value whichever is less.

4. Defense Savings & FEB Certificates

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75% of value of certificates presented as security.

5. Fix Term Deposits Receipts

85% of face value of deposits receipts.

6. NIT Units
80% of the face value or market value whichever is less.

7. Life Insurance policies

85% of surrender value

8. Pledge of Potatoes/Seed Potatoes price or market value which ever is

less
Up to 75% of Govt. support.

Chapter # 2

My Grooming

2.1 Name Of the Departments in Which I Got Training

Brief Introduction to Departments:
2.1.1CREDIT ADMINISTRATION DEPARTMENT
INTRODUCTION OF CAD:
The CAD is abbreviated to Credit Administration Department. This department maintains the
files and proper records of the loans . In this department, I was attached actually to maintain the
loan case files, and check CIB reports.

Duties OF CAD:

CAD is working smoothly in branch to check the disbursement/ Lending property against the security
of the Bank.

CAD responsibility is to hold the loan case files properly and safely.

CAD is responsible to implement the SBP regulation Standards.

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CAD officer is responsible to maintain the clear CIB ,ORR , NIVCS in loan case files.

2.1.2 Account Opening, and locker Department

I was learnt in how to account open and locker facility. To provided me complete knowledge
about the process of account opening, and locker and also explain which way to deals with the
different types of customers.

1 ZTBL Locker Facility

Zarai Taraqiati Bank Ltd. apart from its core functional activity marked with country based
agri-business, has started to serve its valued customers by offering lockers facility. Initially, this
facility is being offered at following 11 branches:S.No

Name of Branch

Islamabad Branch

Main Branch Lahore

Peshawar Branch

Gujranwala Branch

Faisalabad Branch

Multan Branch

Sahiwal Branch

Sargodha Branch

Khan Pur Branch

10

Shafi Court Branch

11

Main Branch Gulshan-e-Johar

Following are the approved rates for rent of lockers and key deposits against which lockers will
be allocated:
Type

Specification

Small

6-1/2"x4-1/2"x23" Rs.1,200/-

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Rent Per Annum

Rent after grace period Key Deposit

Rs.1,500/-

Page 15

Rs. 5,000/-

Medium 13-1/2"x41/2"x23"

Rs.1,800/-

Rs.2,250/-

Rs. 10,000/-

Large

Rs.2,500/-

Rs.3,125/-

Rs. 15,000/-

13-1/2"x81/2"x23"

Life Time Locker Facility

On lump-sum payment of locker rent for ten years entitle the lessee to avail the locker facility for
life time, without key deposit.

2ACCOUNTS OPENING DEPARTMENT

Opening of Current Account
In the ZTBL, the current account usually opened only when the person comes there for a
loan. On the approval of loan, his sanctioned amount is usually credited to his current
account. The procedure of opening of Current Account is not very complicated. The
following are the main point in the opening of a new account:

1.
2.
3.
4.
5.
6.
7.
8.
9.

Acquiring original CNIC

Filling the Current Account Form
Filling of Know Your Customer
Filling of Current Account Card
Registering name in the Current Account Register, (Issuance
of A/C No.)
Filling of deposit slip of starting amount
Signing by AMO and Manager
Issuance of Cheque book
Opening account in the ledger of bank

i: Acquiring Original CNIC

It is mandatory to check the original CNIC of the person before opening of current
account. In the ZTBL it is routine to open account when manager sanctioned and signed
the amount of loan. Because at that stage it becomes essential to have an account in
the bank otherwise the amount of loan will not be paid.

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The other documents required to attach with the forms are:

2 recent pictures
Copy of CNIC.
ii: Filling Current Account Form
After obtaining original CNIC the form for current account is filled with the information
written on the CNIC. The form includes the following information:

Type of account
Branch Name
Branch Code
Name
Father Name

CNIC Number
Address
Occupation
Nationality
Contact number
Date of birth
Marital status
Mother name
Name, CNIC, Contact of MCO who knows the person personally
Next of Kin (The person who will have right to operate the account in the event of the

account holders death or any other mishap)

Starting amount

iii: Filling of Know Your Customer Form

The Know Your Customer form is also attached with the current account opening form and
contains the following information:

Name
Account number
CNIC number
Address
Purpose of opening of account
Monthly income
Source of income
Type of customer (i.e. Walk in)
Public figure
Usual mode of transaction (i.e. in cash, cheque)

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Etc.

iv: Current Account Specimen Card

Name:
Adress:

Account No.
Type of Account:

Name of Account Holder

Name of Account Holder

This side is used to write the name of

account holder both in Urdu and English.

This side is used to obtain the signatures

of the account holder for verification of
cheques in the future if required.

Signing Authority:

One side is used to obtain the signature of account holder; I usually take 3 signature of him in the
right side of card. While the left side of card is used to write the account holder name in both
Urdu and English.

2.1.3 BUDGET & FUND RECONCILIATION DEPARTMENT

INTRODUCTION OF BFRD:
The BFRD stands for Budget & Fund Reconciliation Department. This department is also known
as Budget & Fund Management Department. In this department, I have learnt that how to
respond for application of note received from branch or any department, and issue the fund or
budget to the needy department or branch. This department maintains budget and fund for
branches and other needy departments. The BFRD receives the intimation and they transfer fund
and to receive the surplus fund form the branches. The branches send their records to BFRD.
This department monitors their record which receives from zonal offices and branches in order to
fulfill the requirements. Here ZTBL remits the needs of the branches through commercial banks
such as, National bank of Pakistan, Habib Bank Limited, United Bank Limited, Allied
Bank Limited and Muslim Commercial Bank Limited However, this department prepares the
budget for upcoming financial year or monitors the previous budget and to create funds. The
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main aim of this department is to preparation of financial plan for banks credit limits, funds
review and their application.
A budget is a road map that facilitate where one is and where one want to goand how can one go
to ones desired goal point. While, budgeting is an effective toolof planning and control
exercised in the ZTBL to help management, in order to getthe desired goals of stakeholders
value enhancement. However, budgets are used for, owner oversight, goal focus and financial
control. The main purpose of budget is to plan, communicate, motivate, control and evaluate.
The more clear, accurate and wellthought out budgets in the beginning the more likely you will
be able to:

To adjust plans, activities and spending as needed.

To spend money cost-effectively.

To reach the specific goals you have set.

To strength the internal control system.

To analyze, compile report and to manage funds. Moreover, the main sources of budget
are primary & secondary data, treasury &treasury data, annual reports..etc

OBJECTIVES OF BFRD:

To arrange adequate resources for maintenance of adequate liquidity for efficient credit
disbursement.

To reconcile budget and fund in order to enhance the value of stakeholders.

Timely discharge of liabilities and all operation of the ZTBL.

FUNCTIONS OF BFRD:

To developing policies, procedures and standards for budget planning and analysis.

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To coordination with administrative and governance groups on the issues relating to the
budget.

1. This department is based on the strategic planning of the bank arranging budget estimates
from all over the bank.
2. Time horizon is planned for the preparation, approval and circulation of budget.
3.The call circular of budget is reviewed and finalized, which covers all guidelines and
instructions for preparation of budget proposal is issued along with budget performance to all
divisions, departments, zonal offices and branches of the ZTBL Head Office.
4. The budget criteria is prepare for budget allocation under revenue and capital expenditures.
Presently the budget allocation under major head is made on the following criteria:

Stationary and communication

Traveling Expenditure

Repair and maintenance

Salary and allowance

Rent, taxes, insurance and expenditure

Revenue and investment on securities

5. Approval of budget criteria recommended by the Budget Criteria Committee.

6. Examination & scrutiny of budget proposal received from all divisions, departments, zonal
offices and branches of the ZTBL Head Office and allocation of funds under revenue and capital
expenditures in accordance with the approved budget criteria.
7. The consolidation, computerization, verification and rectification of finalized proposed budget
data of all divisions, departments, zonal offices and branches of the ZTBL Head Office.
8. Preparation of the Budget Agenda, that contains revised estimates of current year and
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proposed budget estimates.

9. Presentation of the Budget Agenda for approval from the Budget Criteria Committee,
President and the BOD.
10. In final step, proposed budget estimates approved by the BOD are circulated to all zonal
offices and branches of the ZTBL Head Office for implementation through a budget circulating
letter containing detailed instructions for proper utilization of funds and judicious spending.

2.2 Project activities at Organization

Assignment No. 01:
During worked in advances department Mr. Musharaf Waseem assigned me the duty of checking
the customer business accounts statement like balance sheet and profit/loss statement items to
calculate the percentage of previous 2 year current ratio are favorable or unfavorable, net profit,
expanses and sales monthly and yearly are increased or not year to year and also property, plant
and equipment depreciation values.
Assignment No. 02:
During my work in accounts opening department Mr. Kamran Saquib assigned me the duty of
checking the files of previously opened accounts for any type of discrepancies like each account
opening form are attached with SS card, CIF form, CNIC copy and also checking the signature
and stamps by the customer and CSR officer etc. It was because an audit of these files in the
coming month is scheduled. Almost above 10% of the application forms were having
discrepancies of different types.
Another duty assigned me daily collect daak . Then open the daak mosty daak was wapda bills a
which are responded on the online system software (CFOYCS).

Making Entries in the Ledgers

In ZTBL the record of current accounts and loans are manually maintained. There are many
records which have been computerized but still the hand written ledgers are used. Making entries
in the Ledgers requires simple concept of debit and credit. However the understanding of
banking practices are required so that to follow the exact way of recording any transaction
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because usually the column written on the ledger books are not used for the purposes for which
they are made. The employee usually has established their own way of writing transactions in the
ledgers the way in which they feel easy. I have found many columns unused in the ledgers of
Sada Bahar Loan Scheme or they have been used to write other information which is different
from the heading of columns.

Writing of Vouchers
Vouchers are the important evidence of all the transactions takes place in the bank. In the
accounts department of ZTBL it is the back bone, every transaction of bank with reference to
cash required a voucher to be drawn against it.

The vouchers are of three types:

1. Debit Voucher (Receipt of Amount)
2. Credit Voucher (Payment)
3. Transfer Voucher

1. Debit Voucher
Debit Voucher is used when bank received any amount from anyone. The example is of
deposited amount by the depositors, the payment of loan by the loanee etc.

2. Credit Voucher
It is used for the payment of any amount by the bank to anyone. Like the cheque drawn on bank,
the expenses of bank itself etc.

3. Transfer Voucher
As the name shows it is used when the amount is required to transfer from one head to another.
The example is the transfer of utilities bills accepted by the bank to the respected utilities
provided company (Mepco, PTCL etc.). The transfer of return to the income account of bank, it
is also used when the loan is sanctioned so it is required to transfer amount of loan to the loanee
account.

Another use of transfer account is to correct mistakes in the ledger, for example if an account is
mistakenly debited in place of another account. So the transfer voucher can be written to credit
the first account and debit the second one to correct the mistake.
In the end of day all the vouchers written during the day is required to be write down in the daily
Scroll (which will be discussed later on) and then all the vouchers of day is sewed and then
sealed so that no new voucher can be placed or removed from the record. These vouchers used to
store in record room and they keep piling up there.
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Every voucher has at least two copies, one for the customer and one for the bank record. For easy
recognition the vouchers are made of different colors.

Debit Voucher (Have three copies and in white color)

Credit Voucher (Have two copies and in blue color)
Transfer Voucher (Have two copies and in yellow color)

2.3 Personal Learning Objectives

My internship at Bank ZTBL was a positive experience. This experience gave me a chance to
analyze and change myself for the better. An internship program provides me an opportunity to
bridge what I learn in the classroom with real life job requirement. As we know that when any
one enter into an organization for internship or for job, most important thing is his/her
communications skills. So the thing that helped me and boosted my confidence was
communication skill. As we have studied Business Communication Skills and presentation
during the MBA program, it gave me the confidence to speak in front of many people. While
working as an internee in the ZTBL, I observed that the first rule of game is to respect your
customer. As an employee one has to listen to whatever customer has to say with full attention
and patience. Moreover the right tactics for convincing customers on your view point requires
great communicational skills. The subjects such as Finance, Accounting, Statistics, Business
Mathetc that I studied during my MBA program that help me to understand the operations
&functions of the Finance & Accounts Division of the ZTBL.
During my internship I improve my soft skills, expand knowledge of related field and gain
experience by work under the highly experienced person, to see the norms and value of the
organization, which may be called the culture of the organization. Actually all the organizations
have their own culture, norms and value under which the organizations exist. In short, I am really
impressed with the friendly and challenging culture of the ZTBL having such a high level of
professionalism, task orientation and event celebrations like 14th August and 6th September. As
internee in the ZTBL, I utilize my communication skills, abilities, confident; what I have studied
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till 7th term & now it is time to convert the theoretical knowledge into the practical knowledge
because I will go in the practical life after some time, so we must aware about the internal
working of organization.

2.4 Comparison of practical experience of internship and teaching

method
Teaching method just tell us the way to do the work and gave the knowledge of work and but
when I applied it in practically it is something different thing. Theoretical Knowledge that I get is
not so much different from the practical knowledge, we just need to implement it.

2.5 Improvement knowledge and skills

I learn in the classroom with real life job requirement. As we know that when any one enter into
an organization for internship or for job, most important thing is his/her communications skills.
So the thing that helped me and boosted my confidence was communication skill. During my
internship I improve my soft skills, expand knowledge of related field and gain experience by
work under the highly experienced person, to see the norms and value of the organization, which
may be called the culture of the organization. Actually all the organizations have their own
culture, norms and value under which the organizations exist. In short, I am really impressed
with the friendly and challenging culture of the ZTBL.

CHAPTER # 3
Ratios Analysis
3.1 RATIO ANALYSIS
The term Ratiomeansthe relationship between any two variables, while analysis is a tool,
which is used for checking the over all performance of any organization. In other words, the
ratios analysis is used to identify the financial strengths and weaknesses. For this purpose, we
use ratio analysis of financial statements such as, balance sheet and income statement. However,
ratio analysis is a tool, which involves methods of calculating & interpreting financial ratios to

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analyze and monitor the firm performance. There are many ratios such as liquidity
ratios, profitability ratios, debt ratios, activity ratios. For this purpose, we use data from 2012
annual reports of the ZTBL, to check the liquidity, leverage and profitability.

3.1.1 Liquidity Ratios:

It is measured by its ability to satisfy short-term obligations when they become due. There are
many ratios of liquidity such as, current ratio, quick ratio and networking capital, which is given
as under:

The Current Ratio:

The calculation of current ratio of the ZTBL from 2012 is calculated and interpreted as under:
Current Assets
Years

Current Ratio
Current Liabilities
122,514,921

2012

0.24
98,092,019

Quick Ratio:

The calculation of quick ratio of the ZTBL 2012 is calculated and interpreted as under:
Quick Assets
Years

Quick Ratio
Current Liabilities
9,944,704

2012

0.10
98,092,019

Net Working Capital (NWC):

The calculation of the NWC of the ZTBLfrom 2012 is calculated and interpreted as under:

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Years

2012

Total Current Assets-Total

Current Liabilities

122,514,921-98,092,019

Net Working Capital

24,422,902

3.1.2 Leverage Ratios:

It measures the firm's ability to repay long-term debt that is used in a firmscapital structure.
There are many ratios of leverage; i.e. debt ratio, total debt to networth ratio & time interest
earned ratio which are given as under:

Debt Ratio:

The calculation of debt ratio of the ZTBL from 2012 is calculated and interpreted as under:
Total Liabilities
Years

Debt Ratio
Total Assets
98,092,019

2012

0.800
122,514,921

Total Debt to Net Worth Ratio:

The total debt to net worth ratio of the ZTBL, 2012 is calculated and interpreted as under:
Total Liabilites
Years

Debt to Net Worth Ratio

Net Working
98,092,019

2012

7.833
12,522,441

Time Interest Earned Ratio:

The time interest earned ratio of the ZTBL from 2012 is calculated and interpreted as under:
Years
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Earning before interest and

Page 26

Time interst ratio

taxes
Interest Expense
3,321,006
2012

0.69
4,783,066

3.1.3 Profitability Ratios:

This ratio examines the relationship between the profits made on tradingactivities against the
sales. It is the indication of business ability to use capital, labor & management to generate
profit. There are many ratios of profitability, such asROA, ROE and EPS which is given as
under:

3.1.4 Return on Assets (ROA):

The return on asset of the ZTBL from 2012 is calculated and interpreted as under:
Net Income
Years

ROA
Total Assets
2,642,944

2012

0.021
122,514,921

3.1.5 Return on Equity (ROE):

The ROE of the ZTBL from 2012 is calculated and interpreted as under:
Net Income
Years

ROE
Total Assets
2,642,944

2012

0.211
12,522,441

Earnings Per Shares (EPS):

The EPS of the ZTBL is calculated &interpreted as under:

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Interpretation of EPS:
Basic EPs

1.734

Diluted EPs

1.734

3.2 Swot Analysis

3.2.1 Strength:

ZTBL has brand name in agricultural loaning.

It is first and large financial institution established in Pakistan to promote agricultural

financing.

The bank has more than 350 branches throughout Pakistan and has presence in all the
provinces of the country which enables it to capture and facilitate a large number of
customers.

The bank enjoys sovereign guaranty of Federal Government that covers its debt
obligation to State Bank of Pakistan.

The Bank has the most experienced and the least experienced staff, which is a good
combination of experienced heads and exuberance of youth.

The bank has ability to launch successful products for agricultural industry due to know
how of the agricultural system of the country.

Mobile Credit Officer is the unique concept which is helping in remaining more near to
its customers and also helps in recovery. Concept like these helps bank in safeguarding
itself in the risky adventure of financing to small farmers.

3.2.2 Weaknesses

ZTBL have not introduced any Islamic product in financing. Islamic banking is becoming
popular in these days and to sustain and increase the number of customers every bank is
felling need to start offering Islamic Products. This ZTBL requires noticing this changing
trend.

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In spite of the presence of technology many jobs are done manually. Almost all other
banks operations have been computerized but ZTBL is still working on manually written
ledgers etc.

Like other Government institutes the red tap dilemma also exists in ZTBL.

The staff is not motivated because the promotion mechanism is based on experience
rather than on the performance of the employees. This is the reason that usually
employees stop giving their full efforts after knowing the reality that their performance
pays a less role in their success.

The average loan disbursement amount is 85,000 to single person which is not a big
amount. Usually the loan obtained by the loanee can be used to meet working capital
requirement only it cannot be used to fulfill the dream of modernizing of agriculture
sector.

There is a lack between the planning of head office and the reality of environment
because the staff at high level have little know how of the real situation on the ground.

The infrastructure of the bank is also based on old style; the bank is not refurnishing its
branches like the other banks have done in this decade.

The situation at branch level is not good, there is lack of even furniture, fans etc.

3.2.3 Opportunities

The bank started computerizing its operation which if completed will result in increase of
the bank performance. The impact of computerization can be seen from the result of
recovery of 2009 which is 89%. The computerized system helps bank in reducing fraud.

Due to increase in the government attention toward the agriculture sector it is expected to
see the role of the bank increasing in the near future. As a result of different steps taken
by the government regarding the betterment of the agriculture, small borrowers are
attracted to get the financing and to start business. So, the ZTBL has an opportunity to
attract the customers by giving them more attracted schemes.

They have wide area network in all over the Pakistan, so ZTBL can make it possible the
fast delivery of funds to rural areas.

The flood of 2010 is challenge for the whole country. Because the most effected people
are farmers so the bank has a chance to increase its reputation by utilizing its full

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resources to help them. It is also expected that the relief which the government may
provide to them will also be delivered through the bank in the form of relaxation to the
loanees.

3.2.4 Threats

The biggest threat in the banking sector is the continuous downfall of the country
economy since the last few years.

Sudden rise and fall in the trade and industry conditions and stock exchange business of
the country also adversely affect the growth of banking sector.

The default ratio of customers who are availing the credit facilities from the ZTBL can
rise due to the economic recession in the country.

Government type of working style is also a threat to the bank which requires to be
changed to keep the banking growing.

Many commercial banks also started agriculture loaning scheme so it is expected that in
the future the farmers will have more choices to have finance from which will definitely
affect the customer base of the bank.

Political unrest is also a threat for the bank because it is a government owned bank and
the change in government can result a change in the strategy of the government which
can affect the plan made by the bank.

Natural Calamities is also a problem, the bigger part of the bank customers relies on the
environmental condition. Almost whole of the agriculture industry have threat from the
changing environment conditions. The example of 2010 flood is still in front of us those
who are affected are unable to pay their loans back.

3.3 Pest Analysis

3.3.1 Political:
Pakistan despite all international and public perceptions, today is a functioning democracy and
gradually there is a change in complexion and composition of legislatures with more educated
people and women (27% of National Assembly and 17% of Senate) entering into politics.
Similarly it helps in designing best strategies to implement that could support the revival of bank
industry. Like in the era of nationalization bank had to suffer as other industry thats why that
impact is still found in the performance of this industry.
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3.3.2 Economical:
Although banking sector development is important at the early stage of economic growth,
general liberalization presuming a homogeneous bank role may not necessarily promote growth.
The estimated cost structure indicates that state-owned commercial banks are large enough,
while development financial institutions and private banks can expect to obtain cost-saving
advantages by expanding their operations. Since scope economies are significant, portfolio
diversification generally increases bank profits. In addition, privatized banks are the most
efficient, followed by foreign and private banks. Public banks are the least efficient.

3.3.3 Social & Cultural:

Banks always helped people in improvement of living condition of poor people in various forms
like giving loans to poor for starting business or directly providing them the instruments that
could enhance their living conditions. Similarly ZTBL always tried to provide the needy people
loans on soft terms and also helped to eradicate unemployment by providing job opportunities
Recent high growth trends coupled with enhanced spending on social and 2007/2008 has
together begun to pay some dividends.

3.3.4 Technological:
There is Inadequate Communication infrastructure.
Smaller and lowest computer facilities.
Inadequate IT training.
Their must be an efficient IT department.

3.4 FINDINGS
i.

The employees working on the same position may have different degrees like
M.Sc.,B.Sc(Hons.), B.Sc., B.A. etc which devaluate the students of MBA, BBA,
and other well qualified staff. so there is a lack of professionalism/professional staff

ii.
iii.

in different departments.
There is no job rotation for employees.
The officers of RRD face many problems during preparing different financial reports
which consume lot of time.

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iv.

The employees are not satisfied with the compensation package; they are just getting
experience and want to shift another organization that has strong position in

v.

the agriculture finance market.

The availability of staff training makes employees awareness of work and ZTBL Staff

vi.

College is providing effectively.

In the ZTBL, In era of technology and globalization, the understaffing may
cause unnecessary work burden on employees decreasing their efficiency.

3.5 Recommendations
i.

Although sill, there is cooperative environment in the ZTBL, but there is a need to
further boost it up. There must be cooperation among staff members, management,

ii.

customer and shareholders.

The job rotation of duties of employees should be implemented to

iii.

improve the performance which will enhance their skills and confidence.
The motivation level of the employees should be enhanced by increasing

iv.

compensation and giving extra fringe benefits.

The advertisements of the products and the services of the ZTBL should be done in a

v.

proper way with a strategic management.

To hire creative, skillful and young employees on the basis of
their eligibility and experience but not on discrimination basis. The
recruitments should be strictly on merit basis and induction should be after

vi.

proper and extensive training.

To remove the file keeping barriers, which waist a lot of time on searching of files.
There should be a proper check and balance. The documentary records

vii.

of the ZTBL should be correct and complete.

More rewards and bonus schemes should be for management as well as for
employees and promotion should be based on performance of employees and

viii.

not on favoritism.
The ZTBL has developed a web site but still only its front home page has been

ix.

developed while other banks have good attractive sites.

The efforts should be made to reduce the employee turnover and
absenteeism rate because it creates misunderstanding and conflicts in

x.

the ZTBL.
In order to increase cooperation among employees, the management has to

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arrange different parties or get together which will create love, care
xi.

and cooperation among employees.

The MIS is still not fully understood by all of the employees. To cope with this
situation, the management should arrange workshops and short courses,

xii.

so that the employees can benefit fully from the MIS.

The employees attitude and behavior towards work and customers must be

xiii.

positive and polite way at time of conversation.

In order to increase the motivation, job satisfaction, and organizational commitment
the organization should give special incentives to all the old as well as new
employees. This may be in the form of promotion or increase in pay or other

xiv.

facilities provided to them on performance basis.

The promotions should be given to the employees of ZTBL on the basis of performance rather
than seniority, time period or designation.

3.6 Conclusion
While concluding my report, I would like to say that an internship report normally covers one
academic term and may be either paid or unpaid. The main purpose of the internship is to
develop and strengthen the students educational and career preparation. I did my internship at
ZTBL, working in the Finance and Accounts Division. My internship goals included completing
the reports assigned to me, learning about the ZTBL, which is public limited company and also
developing positive relationships with employees. Some of my activities as an internee post in
the ZTBL is to coordinate with employees, working on my giving tasks, performing full
concentration and preparation of my internship reports.
So an internship is an opportunity to gain real-life experience doing the work of an employee in
your career area of interest. Ideally, this experience allows me to try out many aspects of the job
and to apply skills learned in the classroom environment. An internship is any experience where
students learn by taking on responsible roles as workers in organizations and observing and
reflecting on what happens while they are in the workplace

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4.2 References

Mr. Ch, Muhammad Saeed (Branch Manager)

Mr. Musharaf Waseem (Deputy Manager)
Mr. Ammar Yasir (AMO Operation)
Mr. Kamran Saquib (Officer Grade 3)
Mr. Rana Waqar Ahmed (Senior Assist)
Mr. Mubasir ahmed(Cash Officer)
Mr. sarfraz (AVP)

Muhammad Usman Javaid

0333-8556007
Usmanmalik044@gmail.com

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