Introduction of Banking in Pakistan:

Managing an account assumes a remarkable part in a nation's wealth after segment of

India and Pakistan British government's bonus dissolve the stores in the middle of
Pakistan and India.
In August 1947, different Banks exchanged their central authority and finances to
India. Before segment of Pak-o-Hind, a few Banks were worked which were Chartered
Bank, Grind-lays Bank, Imperial Bank of India, Australasia Bank and Habib Bank.
After the self-government of Pakistan, Muslim Commercial Bank Limited, Bank of
Bahawalpur Limited, Punjab National Bank and National Bank of Pakistan were
openhanded keeping money offices to overall populace.
The State Bank of Pakistan was introduced by our amazing pioneer Muhammad Ali
Jinnah. On 1st July 1948. Australasia Bank and Habib Bank were openhanded offices
to the Pakistan's country. After some times, Australasia Bank Limited was changed
over into Allied Bank of Pakistan.
State Bank of Pakistan is a Central Bank of Pakistan. Similar Banks are Commercial
Banks, Specialized Bank and Investment Banks.
Presently a day in Pakistan, fifty four banks are worked with a great many
branches. Banks are giving Banking offices to their customers and customers by
contribution diverse administrations and bundles.
Pakistan's business an account area comprising of Islamic Banks, Private Banks,
Public Sector Banks, and Micro Finance Banks. These Banks are doing Corporate
Banking, Trade Financing, Lease Financing and a few Banks are giving web based keep
money offices, ATM office and cash exchange offices moreover.

Overview of the Organization:

History:
The Bank of Punjab started functioning with the inaugural ceremony of its first
branch of 7-Egerton Road, Lahore on November 15, 1989. The founder of the bank Mr.
Nawaz Sharif performed the inauguration. The Bank of Punjab is working as a
scheduled bank with its 273 branches in all major cities of the country. The bank
provides all types of banking services such as Deposit in Local currency, Client
Deposits in Foreign currency, Remittances and Advances to businesses, trade,
industry and agriculture. The Bank of Punjab has entered into a new period of
science to the nation under the experienced and professional hands of its
management.
The Bank of Punjab has played a essential role in the national economy through
mobilization of available local resources, promoting savings and providing funds
for investments.
The Bank of Punjab has played a fundamental role in the economy through
mobilization of available local resources, promoting savings and providing funds
for investment.
The Bank of Punjab has the privilege to set free its responsibilities towards
national success and progress. Within the team of years of its scheduling, the bank
has not only impressed out for itself important position in the standard banking of
the country but in certain areas it has the distinction of taking the lead. In
short span of time the Bank has been able to evolve a distinct corporate culture
through of its owned-based policies, which are realistic and are on highly
professional footings. The Bank of Punjab has assumed an imperative part in the
economy through activation of undiscovered neighborhood assets, advancing reserve
funds and giving assets to scheme. The Bank of Punjab has the benefit to release
its duties towards national booming and advance. Branches of the bank of Punjab are
1. Lahore Central-I Region 2. Multan Region 3. Lahore Central-II Region 4.
Faisalabad Region 5. Lahore North Region 6. Gujranwala Region 7. Lahore South
Region 8. Gujrat Region 9. Peshawar Region 10. Bahawalpur Region 11. Islamabad
Region 12. Jhelum Region 13. Rawalpindi Region 14. Sheikhupura Region 15. Sialkot
Region 16. Sahiwal Region 17. Bahawalnagar Region 18. Khushab Region. RFD is
catering needs of individual customers by offering them a mix of consumer products
as well as of commercial/SMEs customers through its caravan’s fleet financing
product. RFD has designed its innovative Products to meet customers’ needs &
provide state of the art services through dedicated Consumer Financing Centers
(CFCs) current across Pakistan. Moreover, we are initiate bank in solar financing
and we are offering customized solutions on very reasonable rates to many market
segments.
RFD is also playing active role in supporting GOP’s vision of providing employment
opportunities & sheltering to masses of Punjab through Yellow Cab, Apna Rozgar
Scheme & Ashiana Housing Finance Schemes. The Bank of Punjab has in fact enter
another period of science to the country under experience and specialist hands of
its direction. The Bank of Punjab assumes an essential part in the national economy
through activation of previously available neighborhood assets, advancing reserve
funds and giving assets to speculation. The bank offers interesting rates of
benefit on all stores, opening of remote currency accounts and action of outside
trade business for occasion imports, sends out and remittances, financing, exchange
and industry for working capital requirements and money advertise operation. The
loaning agreement of bank is careful and useful as well as in view of principles of
sensible loaning with most extreme stress on security. The Bank gives all types of
saving money administrations, for example, Deposit in Local Currency, Client
Deposit in Foreign Currency, Remittances, Advances to Business, Trade, Industry and
Agriculture An wholly possessed support of BOP First Punjab Mod Arabia (FPM) was
build up in 1992 and is being oversee by Punjab Modaraba Services (PVT) Ltd, a
fully owed supporting of The Bank of Punjab. Lending below Islamic method of fund,
fundamental vehicle are Morabaha, Ijarah &Musharika to envelop provisions of
corporate, business and individual customers.
Vision and Mission statement:
Vision Statement
To be a customer centered save money with management Excellence
Mission Statement
To improve on the desire of our followers by utilize our association with the
management of Punjab and transmission a total scope of skilled arrangements with an
importance on program determined items what's more, administrations in the
horticulture and center markets
during a drive.
Awards and Achievement of BOP:
• Excellence Award by the Central Board of Revenue
• 3 Best Corporate Report Awarded Kissan Time Awards
• 16th Bolan Excellence Award
• Achievement Award
i. Excellence Award by the Central Board of Revenue
The Central Board of Revenue obtainable "Excellence Award" to the Bank of Punjab in
appreciation of the contribution ended by the bank towards Government exchequer.
ii. 3rd Kissan Time Awards
In recognition of Bank's contribution in growth and development of agricultural
sector, the Bank grateful with "Top Bank for Agriculture Finances" and "Best Bank
Crop Insurance" under 3rd Kissan Time Awards year 2006.
iii. Best Corporate Report Award
Annual Report of the Bank for the year 2005 won 5th position for "The Best
Commercial Report Award" for the financial sector, adjudicate jointly by the
society of Chartered Accountants of Pakistan and the Institution of Cost and
Management Accountants of Pakistan.
iv. 16th Bolan Excellence Award
The Bank was award Best Bank Award under 15th Bolan merit Awards circulated in
2006.
v. Achievement Award
The Lahore Chamber of Commerce & Industry awarded the Bank "LCCI Achievement Award"
2006
Organizational Hierarchy chart

Area manager area manager

Business Volume;
Total Number of Stock Holders

Directors
0
Provincial Government
269,686,663

Associated Companies
0
Foreign Shareholders
37,567,610

Individuals
62,526,256

Insurance Companies/Modaraba Mutual Funds

32,993,539

Leasing Companies
958,701

Charitable Trust
274,911

Cooperative Societies
18,011

NIC Units
3,235,607

ICP
99,20

Joint Stock Companies 19,846,858

Others

101,713,295

Total number of shares 568,798,476

Product Line
Deposits Products:
Current Account
Basic Banking Account
Tijarat Account (LCY)
Supreme Current Account (FCY)
Young Loin Saving Account (New Product 2010)
Profit Loss Sharing Term Account:
Profit and Loss sharing Term Accounts offered by Bank of Punjab are:
PLS Saving Account
PLS-Saving Profit plus Account
Consumer Finance:
Types of consumer finance offered by Bank of Punjab are:
Aasaih Loan
Quick Cash
Car Loan
House Loan
Small Cash Personal Loan
BOP Motorcycle Loan
Electronic Banking:
Electronic Banking provides non-stop banking convenience, 24hours a day,4 days a
week.
Visa Debit Card
Internet Banking
ATM Network
BOP Quick pay
Call Center
Services:
The Bank of Punjab is dedicate in its hard work to provide a quality banking
experience to our customer via a collection of unique Banking Services
Commercial Banking
Online Banking
Cash Management Services
Utility Bills
Lockers
Treasury
Western union Money Transfer
Agriculture Credit:
Agriculture credit is provided to the farmers and livestock organizations.
Bank of Punjab provides following agriculture loans with a definite markup rate:
Green Tractor Lease Finance
Agri Finance Branch
Agri Finance Scheme
Kissan Dost Finance Scheme
Second Hand Tractor Lease Finance Scheme
Kissan Dost Aabiari Scheme
Kissan Dost Mechanization Support Scheme
Kissan Dost Farm transport Scheme
Kissan Eslahi-e-Erazi Scheme
Kissan Dost Live Stock Development Scheme
Livestock Breed Improvement Trough VVW
Kissan Dost Commercial Agro Services
Kissan Dost Agri Mall Finance Scheme
Corporate Farming Finance Scheme
Commercial Lease Finances Tractor Scheme
Demand Finance Sheds Construction and Civil Work
Lease Finance Facility for Milked Animals
Running Finance Livestock Poultry
Kissan Dost Model dairy Farms (PDDC)
Kissan Dost Model Milk Centre (PDDC)
Kissan Dost Green House Finance Facility
Kissan Dost Cold Storage Finance Facility
Scheme for Controlled Shed
Lease Finance Facility for Installation of Bio-gas Plant
Group Finance to Small farmers
Clean Credit Facility through Syngenta Franchises
Zarkaashat Drip Irrigation System
Markup of Schemes
Trade Finance:
Trade finance is a loan provided to the import and export to make their
transaction efficient. These enhance the international business. The Bank of Punjab
makes some trade handing out centers to cooperate the export and also to the import
in similar cities of Pakistan such as Lahore, Islamabad, Rawalpindi and Karachi.
Competitors:
The competitor of the Bank of Punjab is the other commercial banks in Pakistan such
as:
Muslim Commercial Bank Limited, Soneri Bank Limited, United Bank Limited, Allied
Bank Limited, Askari Bank Limited, Faisal Bank Limited, Standard Chartered Bank
Limited, Habib Bank Limited, Habib Metropolitan Bank Limited and Bank Al-Habib
Limited
Introduction to All Departments:
The departments and divisions of Bank of Punjab are as follows:
Retail Banking Division
Special Assets Management Division
Credit Administration Division
Human Resource Division
Finance division
Information Technology Division
Operations Division
Credit Risk Management Division
Corporate Banking Division
Control and Compliance Division
Training, Research, Communication and Public Division
Consumer banking Division
Audit and Inspection Division
1. Retail Banking Division
Retail saving money partition of the bank manages the customers and executes their
exchange particularly. It gives the administrations of careful documentation,
contract advances, individual advances, charge cards, accounts checking,
Mastercards, ATM cards.

2. Special Assets Management Division:

The Bank will contribute for the advantage of its clientele and give them right to
use to an general variety of conservative and option item contributions that would
not be to the normal financial expert. It incorporates the programmed extent of
money parities into a currency advertise support, and in addition business
administrations.
3. Credit Administration Division :
Division, banks manages the credit, banks offer advances to people and to the
enterprises.
4. Human Resource Division:
Union performs to the duty of hiring employees, training employees as well as
retaining the employees and if basic, firing employees.
5. Finance Division:
Division to controls the overall activities connecting to finance i.e. investment
activities to check, financing activities, funds of debit and credit
6. Information Technology Division:
This department verification and control the data related with the bank. The backup
of all branches is sent to IT department on daily basis.
7. Operations Division:
Division to controls the whole operation of all the branches and to controls the
cash activities, cheques, account opening and other things about operations.
8. Training, Research, Communication & Public Division:
Division conduct research on new products, trains hired new employees, train old
employees on new and improvement circulars in banking sector. It also provides the
training to customer relation management.
9. Audit and Inspection Division:
Department of bank include the audit of all the branches; they do audit of the
branches and give some opinion to perform their transactions.

Comment on Organizational Structure of Bank of Punjab:

Division of Labor:
The construction of the Bank of Punjab is divided into partition and these
divisions are further divided into departments. Division of labor arrangement helps
the management in controlling the operations of the bank efficiently. Each division
is legally responsible for its own duties.
Span of Control
Span of control among a variety of leveled structure is unambiguously
characterized. Every office reports to the central division and after that this
main office reports to the head office.
Communication
Communication among the hierarchical offices is simple. Flat and vertical
communication among offices is very powerful.
Functional Hierarchy of the Bank of Punjab:

Internship program:
Bank of Punjab branch shahdola gate Gujrat. The code of branch is 023.
Operations of the branch are restricted by operational Manager and branch Manager.
Staff of the branch is based on Branch System Administrator, Operations Staff.
Starting and ending dates of Internship:
I started internship on 1st July , 2016 which ended on 20th June, 2016
Name of training departments and duration:
Duration of the internship was six weeks. The staff of the bank was much
accommodating. They impart me training in all departments of the branch i.e.
Accounts opening, Accounts department, Remittance department, Clearing department,
Bills / Collection, Credit and Advance.
1st week
I worked in accounts opening department. In which I learnt how to open an
account, how to close an account and how to keep the record of account.
2nd week.
I worked in accounts department in which I learnt how to use the Manual Faction of
accounts department.
3rd week.
I worked in remittance department where I work entry of remittance instruments in
the system and preparation of physical instruments
4th weak.
I worked in clearing department where I learn about inward Clearing, outward
clearing.
5th week.
I worked in bill for collection department where at I learnt about outward Bill for
collection and inward bills collection.
6th week.
I worked in advance and credit where I learnt about the allocation of funds in
different range.

Training program
First Day in Bank of Punjab :
I started my internship on 1st July , 2016 at the bank of Punjab which ended on
20th June, 2016. On first day of my program I was informed by the branch director
about various branches of the bank I was likewise told the important principles and
controls which were being seen by the administration of the bank I was in addition
giving some instructions by the Manager Operation which confirmed as a miles stone
amid my temporary position program. I also met various individuals from the staff
in various branches of the bank where at I SWOT for necessary information about
those branches. At that point I began my working in bookkeeping opening office.

1. Account Opening Department :

Account Opening Procedure:
Account Opening Form :
Customer way to deal with bank and a record opening is given to him for contending
and marked by the record holder at better places of the frame.
Completion of the Form :
Account form is completed in all the respect and checked by the bank officer and is
duly signed by the customer which is also too verified by the Operation Manager.
Specimen Signature Card (SSC):
Signature specimen card is necessary for opening an account in the bank. Without
getting signature of customer you can not open the account.
Signature Difference Form:
If customer signature differs from the CNIC, the signature of the customer is taken
on a signature difference form
Computerized Checking :
The bank officer connected via internet to the NADRA website checks the record of
his client social life. If the record of the person is ok, then the officer of the
bank authenticates the record under the signature and stamps and sends it to the
Branch Manager.

Account Number:
Account number is composed on the check book demand. After consummation of all
systems, the bank readies a letter and sends it to the customer at his postal
deliver to pay appreciation to the client.
Cheque Book Issuance:
The principal check book comprises of 25 leaves and no charges are deducted from
the record the record of customer. There after bank sends a suggestion for 25, 50
and 100 leaves with various costs and charges are deducted from the record of
customers.
Procedure for Closing of an account :
The principal check book comprises of 25 leaves and no charges are deducted from
the record the record of customer. There after bank sends a proposal for 25, 50 and
100 leaves with various costs and charges are deducted from the record of
customers.
Procedure of issuance of Bank Statement:
The primary check book comprises of 25 leaves and no charges are deducted from the
record the record of customer. There after bank sends a suggestion for 25, 50 and
100 leaves with various costs and charges are deducted from the record of
customers.
Procedure for ATM/PIN Issuance :
Bank of Punjab provides the ATM benefit to its client and they can be withdraw
their amount at any time through ATM. For issuance of ATM, client has to sign an
ATM form and Bank office make an entry in the system and within 15 days bank
receives ATM card from Head Office which is given to the customer.
2. Accounts Department:
When I completed my training in Account Opening Department, the Branch Manager
sends me to Account Department. Account distribution is in charge of planning
keeping documentation of the income and costs all exchange that are arise in the
bank and their material demonstrate (voucher) are remaining to the record office
following day these voucher are similarly presented on PC and the PC produced
report of day by day exchange is made in IT office and afterward they send to the
record office to match or advise to PC created report and their voucher of day by
day exchange and spare it as a physical record that these exchange are happen in
the bank at taking after date. The report produced by the records office on a day
by day, week after week, month to month, bi-yearly and yearly is composed in a
lawful organization. It is neither fundamental nor imaginable to adjust by these
reports in a brief timeframe.
A portion of the normal reports are: Monthly Assets and Liabilities, Monthly Budget
Review Report, Monthly Monitory explanation, Monthly Performance Review Report and
Monthly settled venture. For these announcements, five reports convey extraordinary
significance. The five reports are: Daily position of advances and store, Statement
of issues, Daily trade position report, settled resources proclamation and Monthly
survey of execution. The record bureau of BOP needs to record even the minor costs
of the branch like tea for staff, stationery for the branch
3. Remittance Department:
Arrangement union exchanges the reserve figure one bank to another bank and one
place to anywhere else. In this office assemblies occur. The bank of Punjab makes
repayment of just open beware of the counter and restrict the installment of
crossed checks. Bank of Punjab exchange cash starting with one place then onto the
next put in by method for installment request, request draft, internal assembly,
and outward growth.
Demand Draft:
A request to pay cash to the payee who is income outside the city, Demand draft can
be for a consumer who could possibly have and account in the bank however the other
individual's record must be reserved with the bank for which the payer has
requested the request draft.
Payment Order:
Pay request is request cash yet this installment is to be made inside city. At the
end of the day one might say that the payee and the payer ought to be in one city.
In pay arrange installment can be made in real money, clearing and exchange.
4. Clearing Department:
I learnt their about clearing of a range of checks and resolution taking care of. I
was told there the principle objects of clearing. I got all the clearing checks and
made a calendar of these checks in the get up of making sections in outward and
internal clearing registers and sent the same to fundamental branch where at all
the checks were sent to NIFT(National Institutional Facilitation Technology)
NIF:
NIFT stand for National Institutional Facilitation Technologies. Clearing place of
SBP has encouraged a piece of its work to private foundation names NIFT. NIFT
collets checks, request draft, pay arrange, voyager’s checks and so on from all
branches of a range of banks inside city through its transporters and send them to
the branches on which these are drawn for clearing. NIFT set up a page for every
branch and send it to every branch and in accumulation to State Bank of Pakistan
where records of Banks are settled
Types of clearing
a) Inward clearing:
At the point when checks of different Banks are store in our bank, in waken of
clearing these checks through NIFT by exchange Banks on which these are down.
Records of consumers are credited.
b) Outward clearing:
At the point when checks of our bank are reserved in different Banks and these
checks are sent to us for authentication, we charge the our customer after
verification their record.
5. Bill for Collection Department:
Charge for addition is the clearing approach for check, draft, bill of trade, and
promissory note on the off chance that that a gathering branch and a paying branch
are placed in various clearing territories. Bill of accumulation gives direction to
their client to get payment from the closer bank at superficial chargers.
6. Advance and Credit Department:
Advances and credit division is the most essential office in the bank in this
office advances are providing for the industrialist, exporter and so forth before
giving development, credit value of the borrower is considered i.e. character,
limit, insurance, credit terms and so on advances are additionally given to various
banks.
Principles while Advancing:
Five rule that must be appropriately down to earth while propelling cash to
borrowers i.e. security, liquidity, transfer, compensation and appropriateness
Financial Statements:
I used Financial Statements of Bank of the Punjab for the last three years 2013,
2014and 2015 because Bank of the Punjab have no Financial Statements of 2016.
Financial Statements of Bank of the Punjab for the last three years 2013, 2014and
2015 are,

The Bank of Punjab

P & L Account
As on 31st December

2013
Rs. (000) 2014
Rs. (000) 2015
Rs. (000)
Markup/ return/interest earned 11,643,963 17,539,538 17,752,652
Markup/return/ interest expensed 7,573,722 13,939,377 16,614,000
Net markup/interest income
4,070,241 3,600,161 1,138,652
Provision against non-performing loans and advances-net 340,626 1,616,421
18,863,580
Provision for diminution in the value of investments 33,000 24,479
388,757
Bad debts written off directly 100 246,869 ----
373,726 1,887,769 19,252,337
Net markup/interest income after provisions 3,696,515 1,712,392 (18,113,685)
NON MARK-UP/INTEREST INCOME
Fee, commission and brokerage income 473,212 659,488 579,520
Dividend income 1,385,875 1,812,870 2,025,160
Income from dealing in foreign currencies 239,804 377,233 324,327
Gain on Sale of Securities 389,063 2,039,535 733,787
Unrealized Gain / Loss on Revaluation of Investments classified as held for trading
--- ---- --------
Other income 466,435 547,635 526,186
Total non mark-up/interest income
2,954,389 5,436,761 4,188,980
 6,650,904 7,149,153 (13,924,705)
NON MARK-UP/ INTEREST EXPENSES
Administrative expenses 1,751,970 2,255,342 2,808,835
Provision against lending to financial Institution 130,000 -------- 10,101
Provision against off Balance Sheet Items 175 292 ----
Provision against receivable from NIT --- ---- ---
Other charges 38 37,950 114,700
Total non- markup/ interest expenses
(1,882,183) (2,293,584) (2,933,636)
4,768,721 4,855,569 (16,858,341)
Extraordinary /unusual items -------- --------- ---------
PROFIT BEFORE TAXATION
4,768,721 4,855,569 (16,858,341)
Taxation
For the year –Current 880,997 170,700 207,600
-Deferred
For prior year –Current -- (19,921) 1,052,000
-Deferred 83,469 250,772 8,033,001
964,466 401,551 6,773,401
PROFIT AFTER TAXATION
3,804,255 4,454,018 (10,084,940)
Un-appropriate profit b/f 169,817 3,226,961 3,468,956
Reversal of Excess management fee accrued last year ---- ----- 6,250
Transfer from surplus on revaluation of Fixed assets – net of tax 6,174 5,866
5,572
175,991 3,232,827 3,468,278
Profit available for appropriation
3,980,246 7,686,845 (6,616,662)

The Bank of Punjab

Balance Sheet
As on 31st December

2013
Rs. (000) 2014
Rs. (000) 2015
Rs. (000)
ASSETS:
Cash and Balances with treasury Banks 14,054,859 14,210,302 10,685,058
Balances with other Banks 3,722,089 1,927,662 2,178,455
Lending's to financial institutions 11,846,823 2,450,000 633,333
Investments 28,233,211 73,461,693 22,689,608
Advances 101,319,954 133,899,143 131,724,113
Other assets 3,609,457 5,789,116 6,122,406
Operating fixed assets 2,068,744 3,252,759 3,471,838
Deferred Tax assets
---------- --------- 8,388,162
Total Assets
164,855,137 234,990,675 185,892,973

LIABILITIES

Bills payable 856,448 937,647 1,219,801

Borrowings from financial institutions 6,989,424 17,842,915 12,278,773
Deposits and Other accounts 137,727,606 191,968,377 164,071,732
Subordinated Loans ------ -------- -----
Liabilities against assets subject to finance lease 40,988 40,321 30,632
Other liabilities 2,816,341 2,983,977 4,564,481
Deferred Tax liabilities 298,616 2,205,530 -------
Total Liabilities
148,729,423 215,978,767 182,165,419

Net Assets
16,125,714 19,011,908 3,727,554

Represented By:
Share Capital 2,902,490 4,230,379 5,287,974
Reserves 4,537,732 7,427,232 7,427,232
Un-appropriate Profit 3,219,246 3,468,956 (7,674,257)
Total Equity
10,658,968 15,126,567 5,040,949
Surplus on Revaluation of Assets
5,466,746 3,885,341 (1,313,395 )

Analysis:
For the analysis, administration and the investor make some ratio analysis, in
which Liquidity Ratios, Profitability Ratios, Market Ratios, Activity Ratios,
Leverage ratios are responsive.
Ratios:
In arrange to analysis the financial act of the bank; investor and management use
the ratio analysis in which following ratios are calculated:
1. Liquidity Ratios
2. Leverage Ratios
3. Profitability Ratios
4. Activity Ratios
5. Market Ratios
Liquidity Ratios :
Liquidity ratios means to part short term solvency of the company. Capability of
the company to pay off its short term debt. Following ratios are calculated in
order to measure the short term solvency of the company
• Current Ratio
• Acid Test Ratio
• Working Capital

• Current Ratio:
Current Assets = Cash and Balance with Treasury Banks + Balance with other Banks
+Lending to Financial Institution + Short Investment + Short Advances + Other
Assets
Current Liabilities = Bill Payables + Short Borrowing + Short Deposit + Other
Liabilities
Current Ratio = Current Assets / Current liabilities
Year 2013 Year 2014 Year 2015
=Rs.122, 347,224 / Rs. 94,274,512
= 1.3: 1 =Rs.173, 120,729/ Rs.140, 202,371
= 1.23: 1 =Rs.128, 967,953/ Rs.107, 914,057
s: = 1.19 : 1
Working:
For 2013
Current Assets = 14,054,859 + 3,722,089 + 11,846,823 + 20,501,978 +68,612,018 +
3,609,457
= Rs.122, 347, 224
Current Liabilities = 856, 448 + 6, 989, 424 + 83, 612, 299 + 2,816, 341
 = Rs. 94,274,512
For 2014
Current Assets = 14,210,302 +1,927,662 + 2,450,000 + 65,857,861 + 82,885,788+
5,789,116
= Rs.173, 120,729
Current Liabilities = 937,647 + 15,857,522 + 120,423,225 + 2,983,977
= Rs. 140,202,371
For 2015
Current Assets = 10,685,057 + 2,178,455 + 633,333 + 20,038,517 + 89,323,454 +
6,109,137
=Rs. 128,967,953
Current Liabilities = 1,219,801 + 10,601,169 + 91,528,830 + 4,564,257
= Rs. 107,914,057

Graphical Representation:

Explanation:
The standard of this section is 2:1, imply current income are double the present
liabilities. Be that as it may, Bank of Punjab has a lower current amount to the
standard rate..
• Acid Test Ratio:
Current Assets = Cash and Balance with Treasury Banks + Balance with other Banks
+Lending to Financial Institution + Short Investment + Short Advances + Other
Assets
Current Liabilities = Bill Payables + Short Borrowing + Short Deposit + Other
Liabilities
Prepaid expenses = Advances, deposits, advance rent and other prepayments
Acid Test Ratio = Current Assets – (Inventories + prepayments) / Current
liabilities
Year 2013 Year 2014 Year 2015
= Rs.122, 347, 224- Rs.102, 571/Rs. 94,274,512
= 1.29
= Rs.173, 120,729- Rs. 159,438/ Rs. 140,202,371
= 1.23
=Rs. 128,967,953-Rs.161, 553/ Rs. 107,914,057
= 1.19
Workings:
For 2013
Current Assets = 14,054,859 + 3,722,089 + 11,846,823 + 20,501,978 +68,612,018 +
3,609,457
= Rs.122, 347, 224
Current Liabilities = 856, 448 + 6, 989, 424 + 83, 612, 299 + 2,816, 341
= Rs. 94,274,512
Prepaid Expenses = Rs.102, 571
Current Assets = 14,210,302 +1,927,662 + 2,450,000 + 65,857,861 + 82,885,788+
5,789,116
= Rs.173, 120,729
Current Liabilities = 937,647 + 15,857,522 + 120,423,225 + 2,983,977
= Rs. 140,202,371
Prepaid Expenses = Rs.159, 438
For 2015

Current Assets = 10,685,057 + 2,178,455 + 633,333 + 20,038,517 + 89,323,454

+6,109,137
=Rs. 128,967,953

Current Liabilities = 1,219,801 + 10,601,169 + 91,528,830 + 4,564,257

= Rs. 107,914,057
Prepaid Expenses = Rs.161, 553

Graphical Representation:

Explanation:
In each of the three years basic analysis amount is insignificant more than is
typical proportion. It must be 1:1 so as to confirmation the transient
dissolvability of the bank to pay off Is fleeting bank.
• Working capital:
Working Capital = Current Assets – Current Liabilities

Year 2013
Year 2014 Year 2015
=Rs.122,347,224-Rs. 94,274,512
=Rs.173,120,729- Rs. 140,202,371 =Rs. 128,967,953– Rs.107,914,057
= Rs.28,072,712 = Rs.32,918,358 = Rs.21,053,896

Workings:
2013
Current Assets = Rs.122, 347, 224

Current Liabilities = Rs. 94,274,512

2014

Current Assets = Rs.173, 120,729

Current Liabilities = Rs. 140,202,371

2015
Current Assets = Rs. 128,967,953

Current Liabilities = Rs. 107,914,057

Graphical Representation:

Explanation:
The working capital is rapidly increasing from 2013 to 2014. Because the current
assets of Bank of Punjab are rapidly, increase. In 2015 it declined but not in a
rapid as it grows 2013 to 2014.
Leverage Ratios:
These ratios show the capital creation of the firm. Through these ratios we find
that how the firm money their actions. It is more important for the lender to
review that the firm can refund the loan sum or not. Increasing debt increases the
chance of insolvency of the firm. Following ratios falls under this category,

• Time Interest Earned

• Debt Ratio
• Debt to Equity Ratio
• Debt to Tangible Net Worth
• Total Capitalization Ratio

• Time Interest Earned Ratio:

Time Interest Earned = Profit before tax + Interest Expense (EBIT) / Interest
Expense
Year 2013 Year 2014 Year 2015
=Rs.4,768,721/Rs.7,573,722
= 0.63 =Rs.4,855,569/Rs.13,939,377
= 0.35 =(Rs.16,832,906)/Rs.16,614,000
= -1.01

Working:
Given in the Profit and Loss Account
2013
Profit before tax + Interest Expense = Rs.4, 768,721

Interest Expense = Rs.7, 573,722

2014
Profit before tax + Interest Expense = Rs. 4,855,569
Interest Expense = Rs. 13,939,377
2015
Profit before tax + Interest Expense = Rs. -16,832,82
Interest Expense = Rs. 16,614,000

Graphical Representation:

Explanation:
The Time Interest Ratio of Bank Of Punjab is not better. The ratio is time after
time is declining even in 2015 it went negative. This graph is showing that the
bank earnings before income tax not sufficient to cover its interest expenses.
• Debt Ratio:

Total Debt = Bills Payable + Borrowings from financial institutions + Deposits &
other accounts + Subordinate Loans + Liabilities against assets subject to finance
lease + deferred tax liabilities+ Other liabilities
Total Assets = Given in the Balance Sheet

Debt Ratio = (Total Debt / Total Assets) * 100

Year 2006 Year 2014 Year 2015
=Rs.148,729,423/Rs.164,855,137
= 90.21% =Rs.215,978,767/Rs.234,990,675
= 91.90% =Rs.182,165,419/Rs.185,909,120
= 97.99%
Working :
2013
Total Debt = 856,448 + 6,989,424 + 137,727,606 + 0 + 40,988+298,616+2,816,341
= Rs.148,729,4
2014
Total Debt = 937,647 + 17,842,915 + 191,968,377 + 0 +40,321+2,205,530+2,983,977
` = Rs.215, 978,76
2015
Total Debt = 1,219,801, + 12,278,773 + 164,072,532 + 0 + 30,632+ 0 +4,564,481

Graphical Representation:

Explanation:
Debt ratio is measure debt with the total assets. The graph shows that the debt
ratio is repeatedly rise that indicates the dependence on debt is collective and in
2015 it is at the higher level.
• Debt Equity Ratios:
Total Debt = Bills Payable + Borrowings from financial institutions + Deposits &
other accounts + Subordinate Loans + Liabilities against assets subject to finance
lease + deferred tax liabilities+ Other liabilities
Total Equity = Share Capital + Reserves + Un-appropriated Profit
Debt to Equity Ratio = Total Debt / Total Equity

Year 2006 Year 2007 Year 2008

=Rs.148,729,423/Rs.10,658,968
= 13.95 =Rs.215,978,767/Rs.15,126,567
= 14.27 =Rs.182,165,419/Rs.5,040,949
= 36.13
Working
2013
Total Debt = 856,448 + 6,989,424 + 137,727,606 + 0 + 40,988+298,616+2,816,341
= Rs.148,729,423
2014
Total Equity = 2,902,490 + 4,537,232 + 3,219,246
= Rs.10,658,96
Graphical Representation:

Explanation:
As we already practical that the debt is increasing, in this graph we compare it
with the equity. We find the dependable increase in the debt to equity ratio. In
2015 it was at the higher level. The debt overdone the equity.
• Debt to Tangible Net Worth:

Tangible Net Worth = Total Assets – Liabilities – Intangible Assets

Debt to Tangible Net Worth = Total Debt / Tangible Net Worth
Year 2013 Year 2014 Year 2015
=Rs.145,614,466/Rs.16,095,248
= 9.05 =Rs.210,789,260/Rs.18,993,725
= 11.10 =Rs.177,601,738/Rs.3,735,613
= 47.54
Working:
2013
Tangible Net Worth = 164,855,137 – 148,729,423 – 30,466
= Rs.16,095,248
2014
Tangible Net Worth = 234,990,675 – 215,978,767 – 18,183
= Rs.18,993,72
2015
Tangible Net Worth = 185,909,120 – 182,165,995 – 7,512
= Rs.3,735,613
Graphical Representation:

Explanation:
As the graph is present that the debt to tangible net value ratio is increasing.
From 2013 to 2014 it to some extent increased but from 2014 to 2015 it speedily
increased due to the increase in debt. So the BOP has not Net Tangible Net Value to
cover the Debt.

Total capitalization Ratio:

Year 2013 Year 2014 Year 2015
=Rs.36,296,156/ Rs.46,955,124
= 0.7729 Times =Rs.55,571,712/Rs. 70,698,279
= 0.7860 Times =Rs. 46,755,209/ Rs.51,796,158
= 0.9026 Times

Long Term Debt = Deposit and other account + Liabilities against assets subject
to finance lease + Deferred tax liabilities + other liabilities
Working
2013
Long Term Debt = 35,880,568+ 23168+298,616+ 93,804
= Rs.36,296,156
= 36,296,156/ (36,296,156+10,658,968)
= 36,296,156/ 46,955,124
2014
Long Term Debt = 53,219,973+30615+ 2,205,530+115,594
= Rs.55,571,712

=55,571,712/ (55,571,712 + 15,126,567)

=55,571,712/ 70,698,279
2015
Long Term Debt =46,555,790+19859+0+ 179,560
= Rs.46,755,209
= 46,755,209/ (46,755,209+ 5,040,949)
= 46,755,209/51,796,158

Graphical Representation:

Explanation:
The total capitalization ratio compares the total debt with the total of debt and
equity. The low capitalization ratio specifies the financial strength of the firm.
According to the graph, I can realize that the ratio in 2015 is higher. In 2014, it
was at the last level in selected years.
Profitability ratios
Measure the earning ability of the firm. Following ratios are calculated:
• Net Profit Margin
• Return on Assets
• DuPont Return on Assets
• Operating Income Margin
• Return on operating Assets
• Return on Total Equity
• Gross Profit Margin

• Net Profit Margin :

Net Profit = Profit after Taxation
Total Revenue = Markup/ return/interest earned
Net Profit Margin = Net Profit / Total Revenue
Year 2013 Year 2014 Year 2015
= Rs.3,804,255 / Rs.11,643,963
= 32.67% = Rs.4,454,018 / Rs. 17,539,538
= 25.39% = (Rs.10,084,940) / Rs.17,752,652
= -56.81%

Working
2013
Net Profit = Rs.3, 804,255
Total Revenue = Rs.11, 643,963
2014
Net Profit = Rs.4, 454,018
Total Revenue = Rs.17, 539,538
2015
Net Profit = Rs.-10,084,940
Total Revenue = Rs.17, 752,652
Graphical Representation:

Explanation:
The net profit margin is fading from 2013 to 2014, as shown in graph. In 2013 the
net profit margin is 32.67% which is developed in selected three years. After this
it start to decline and in 2015 The Bank of Punjab has to stomach a loss.
Return on Assets:
Net Profit = Profit after Taxation
Total Assets = Given in the Balance Sheet

ROA = Net Income / Total Assets

Year 2013 Year 2014 Year 2015
= Rs.3,804,255 / Rs.164,855,137
= 2.31% = Rs.4,454,018 / Rs.234,990,675
= 1.895% = (Rs.10,084,940)/ Rs.185,892,973
= -5.425%
Working
2013
Net Profit = 3,804,255
Total Assets = 164,855,137
2014
Net Profit = 4,454,018
Total Assets = 234,990,675
2015
Net Profit = 10,084,940
Total Assets = 185,892,973
Graphical Representation:

Explanation:
It is simple Return on Assets, which calculate complete net income, and total
assets but the result is same as in Du-Pont ROA. It is showing the reliable decline
in the return on Assets.

Future Prospects of the Organization:

The reaching and growth of Bank of Punjab relies on upon the Government's following
motivation and its events to understand a more remarkable level of positive
thinking between financial expert and business group.
The common currency broadcast position with to great degree low rates of premium
and inactive private area credit is a real problem for keeping money section in
Pakistan. This incident will constrain keeping money part to move their
concentration from traditional managing an account way to deal with retail saving
money. Managing an account taking lead in this move procedure will be least amount
unfair by the major horrible financing cost situation.
The mission to change The Bank of Punjab into a updated business situated
association is cruising easily and in this heading at this point automation of 243
branches has been finished in effect. Bank of Punjab has chosen to resolve office
of ATM at its chose branches for which it has held hands with MCB. Bank is
extremely quick to offer the office of bury branch keeping money benefits contained
by year 2011.
SWOT Analysis of BOP:
Strength:
The Punjab government behind to "the bank of Punjab" its collect trust of customer
on bank. M/S PACRA has arranged the keep money with the FICO assessment AA-for the
long haul and the A+1 for the brief in light of its monetary outcome for the year
finished as on 31st December 2004 The bank of the Punjab has an extensive system of
branches there are 272 branches everywhere throughout the Pakistan. The bank of
Punjab has modernized managing an account framework. The bank of Punjab gives the
internet saving money offices to its clients. To prepare its government the bank of
Punjab have preparing focus there are distinctive instructional course are held for
new and old workers. The fiscally location the bank of Punjab developing each year
the bank of Punjab most noteworthy win per share.
Weakness:
The bank of Punjab has just few branches out of province Punjab. Different banks
have focused rim. As the bank of Punjab has a broad branch inside the Punjab area.
It is worrying u deal with the extensive number of branches, further increment the
cost, the staff individual from the bank of Punjab are not happy with the reward
scale augmentations and advancement criteria as look at different banks. The work
obligations are broken into little parts. There is offer customary product
offering. There is have to improve the product offering. Turnover rate of
unemployed increment as they are not fulfilling inside the compensation structure
OPPORTUNITY :
As economy is developing there is more assumption request in Pakistan. Banks have
chance to improve their business. Imports and fares of the nation are growing.
With the risk of WTO SMEs require more subsidizes to upgrade their framework to
enhance the quality. Banks are the spring of these subsidizing. The quantity of
paid people is expanding with the economy structure of the nation this makes
opportunity in buyer financing.

Threat :
The bank of Punjab has real government supplies with change the administration
approaches it might influence the bank. An entrance or remote bank in rivalry with
nearby bank is extraordinary danger of bank of Punjab. The state bank of Pakistan
frequently forces different limitations on banks as a result none of bank is in
depended in strategy making and can post any item without the consent of the state
bank of Pakistan. Government enactments about saving money area. Political believe
more artificial the bank of Punjab
Conclusion:
Temporary job is attractive system, which gave me the useful touch of the managing
an account ground. Through this, I learnt that what are the keeping money and its
movements. I learnt from the bank officer and comprehend the operation of managing
an account. This research program upgraded my coming about the banks.
Proportion examinations demonstrate that the year 2015 tricky for the BOP. As in
this year, BOP needs to hold up under the misfortune. Primary reason of this
trouble is the non-performing advances and alternating and in addition Hamish Khan
outrage. The other reason is increasing obligation. Because of this, the bank needs
to pay more enthusiasm on the obligation. This element expanded the intrigue costs.
In 2008 the EPS and DPS more declined so the P/E quantity additionally declined so
the Shares of BOP were not alluring for the speculators. In this manner, the Bank
of Punjab needs to end up distinctly reliant on the obligation.
The regulatory costs very nearly 60% expanded from 2013 to 2015. It appears that
the administration of the BOP practically neglects to conquer the managerial costs.
This thing likewise diminished the benefit.
The speculations, which are the piece of gaining resources, likewise decay. In this
manner, the wellsprings of the other pay likewise diminished.
Right around 90% branches of BOP are situated in Punjab even in Karachi the center
point of monetary exercises of Pakistan just 11 branches. Along these lines, the
market scope of BOP is much lower. The political calculate can't be stayed away
from this respect on the grounds that the Government of Punjab holds most of the
shares so the administration mediates in the bank exercises

Recommendation :
An organization exact to be lucky whose bad debts are recovered, the bank of Punjab
unbearable too much bad debts due to favorite of loans to dictators.
My opinion to raise the profit of BOP, first they improve their bad debts. If they
do it,
Then their profitability ratio will increase.
In my analysis, BOP consumes their operating incomes as concerning the year 2008. I
will not say to close their costs because these are not to be closed but these are
to be complete.
According to statements of 2015, in Bank of Punjab have no many shares of
investors. The bank of Punjab depends on the debt, who improves the price to
earnings ratio. For the life of the bank, the upper management will make some
strong strategies, which complete it from the competitors. In my internship
program, I see mostly the persons of government job holders make their accounts in
the branch.
No much account of social individuals are come to open their account in the bank.
Therefore, my opinion is to motivate the individuals to open their accounts in BOP.

To become profitable the BOP should overcome its non-productive expenses. Its
management has to take effective decision to reduce its administrative expenses.
The bank has to control the non-performing loans, which are the main reason of this
heavy loss in 2015.
As name shows, “Bank of Punjab” refers to the Punjab provision only, and a head
office in Karachi. It is essential for BOP to make its branches in the whole
country of Pakistan because the competitors are spread over the country.
This is very important for BOP to reduce the operating cost. Therefore, the
operating profit will increase. The management of BOP should focus on short-term
deposits.
Reference:
For the analysis and the brief history of the Bank of Punjab, his financial
Statements, I get data by using internet from different websites, in which,

History of The Bank of Punjab Retrieved from Bank of Punjab web site
https://www.bop.com.pk/AboutUs.aspx

Product Detail. Retrieved from Bank of Punjab web site

https://www.bop.com.pk/Products.aspx

Annual Report, Retrieved from Bank of Punjab web site

https://www.bop.com.pk/Financial/AnnualAccounts.aspx

Financial Statements of BOP 2006

Financial Statements of BOP 2007
Consolidated Report of BOP 2008

Banking Ratios and SWOT Analysis, Obtained from the site:

http://www.investopedia.com/features/industryhandbook/banking.asp