Replacing despair with hope and confidence in a better future.

Sukkur City Branch, Sindh, Pakistan

MUHAMMAD AMEEN UJJAN

Roll No; BBA-14-57 (Finance)

INTERNSHIP REPORT SUPERVISOR

PROF; DR. MENHON KHAN LAGHARI

DEPARTMENT OF BUSINESS ADMINISTRATION

FACULTY OF MANAGEMENT SCIENCES
SHAH ABDUL LATIF UNIVERSITY KHAIRPUR MIR’S,
SINDH, PAKISTAN
2017
I
 Dedication

At first dedicating this work to Almighty Allah, without his mercy and sympathy I was not able to

accomplish my work.

I also dedicate my entire work to my loving teachers and parents who are the best source of inspiration

and best gift of life from Almighty Allah.

II
 Acknowledgment.

All praise to Almighty Allah, the most merciful and compassionate, who give me skills and abilities

to complete this report successfully.

I am grateful to my parents who are always been a source of encouragement for me throughout my

life and from start to the end of this report

I express my greatest gratitude to my kind hearted Mr. Zameer Hussain (Area Manager) who was

the Person who made me able to write this report, His enthusiasm shows the way forward to me to

achieve this success and who kept me in high spirit through his appreciation.

After this I thankful to Honorable Mr. Ghulamullah Bhutto (Branch Manager). He helped me a lot

each time I went to him.

In the last but not the least I also very thankful to my Bank Internship trainer Miss Noor-Ul-Ain for

supporting and encouraging me each time and at every step during the entire time period of my
internship.

In short I am thankful to all staff member of FMFB (Sukkur) who helped me a lot to learn all the

necessary things that I had to require.

I found every one very co-operative and helpful for providing me the Theoretical as well as practical

knowledge about the functions and operations of the bank.

Muhammad Ameen Ujjan

BBA-14-57 (Finance)

Department of Business Administration

Shah Abdul Latif University Khairpur

III
 Executive Summary

The internship report on Operations & Functions in Banks: A look from FMFB Bank Limited as

required by the HR department of Bank & my University Supervisor, Department of Business

Administration, Shah Abdul Latif University Khairpur. The objectives of the report are to study & to

analyze the credit management, identify the problems of credit management & recommend policies

to overcome the problems of FMFB Bank Ltd. Both primary & secondary data are used to prepare
this report.

First Microfinance Bank is to provide sustainable services to the people of Pakistan, particularly to

vulnerable groups such as women, based on financial products. It is making accessible, retail services

to underserved rural and urban populations and wholesale funds to other organizations with the same

commitment. It is aiming for a high level of outreach through the country, at the same time covering

its inflation-adjusted costs from its own revenues over the long term. Particular emphasis is being

placed on building up a sound deposit base, recognizing that learning to save regularly and promoting

financial discipline is the key to helping people graduate out of poverty.

In this report you will find the detail about the bank right from in its incorporation to the current

position. Along with it, the process, policies and procedure of bank are also discussed in detail. This

internship report covers many important aspects which are basically related with the operations and

financial aspects of bank.

This Report is divided into two portion first portion is consist on the prefatory part like dedication,

preface and acknowledgement to express my praise and gratitude to all the people who encouraged

me and support me to complete my internship program & this report. Execute summary is also be

included in this portion to summarized this report.

IV
And Second portion is contains of body parts, which are divided into seven chapters. First chapter will

describe the brief introduction about the organization through historical perspective, background

overview and role in Pakistan, Policy of Organization and Competitors in the market of Pakistan. In

order to understand the Banks on which the study is carried on, the second chapter of the study deals

with some theoretical concept about Profile of FMFB Bank Limited described as the vision and

mission statement of organization, product and services provided to the customers in varies course of

requirements. Organization Main offices, Structure of Organization and number of Employees.

The Third chapter is about the profile description of branch at where the internship scheduled, starting

& ending date of internship, in last but not least about the branch management Hierarchy structure and

finally about the business position about the branch regarding to the number of loan disburse, number

of clients and quantity of the amount deposited up to my second last day of training.

The Fourth chapter begins with conceptual framework of operational and functional activities of

FMFB Bank done by the employees on daily basis. The list of achievements that I achieved and short

description about tasks that the management assigned to me.

The Fifth chapter is about the different types of analysis and findings on evaluation on sales, cash &

operation department management activities. In reflective journal writing, I will reflect on all activities

during each day of internship in that organization and then will enter in reflective journal on daily

basis. And critical analysis relate the theoretical concepts with my practical experience during my

internship in the organization.

The Second last chapter is about SWOT analysis, clearly describe all the strengths, weaknesses,

opportunities and threats of the organization and conclusions and recommendations which are drawn

by analysis of whole study.

The main findings of the study are as follows FMFB loan policy is very restrictive, the bank has little

concern about advertising process, the bank has no written lending guidelines, loan sanctioning
process is lengthy etc.

V
Some recommendation of the study are micro credit policy should be moderate, the bank should be

concentrate about advertising process, the bank should maintain written lending guidelines, the bank

should maintain quick loan sanctioning process.

The final chapter covered the references and sources from where I collected the primary and secondary

information for the use of this report and end with annexes, some attachments that I used during my

training program.

VI
 Table of Contents

Chapter 1. Overview of the Organization….………………………….…..….… (01)

1.1. Introduction through Historical Perspective….……..…….…….………………......… (01)

1.2. Background Overview………………………………..……………….…………...….. (03)

1.3. Role in Pakistan…………………..……………………....……………………….…... (04)

1.4. Policy of Organization………..…...……………………..………….………………… (06)

1.5. Competitors of the Organization………………………………..…………………….. (06)

Chapter 2. Profile/Organizational Structure.……………………....................... (07)

2.1. Vision & Mission…………...……………………………………..….…...…….…….. (07)

2.2. Core Values…………………………………………….………………..……………. (07)

2.3. Strategic Objectives……………………………………….……..………….……..….. (08)

2.4. Business Development Services…………………………….…………………...……. (08)

2.5. Products & Services………………………………………….……….………..…..….. (09)

2.6. Main Offices Linked with Organization….……………………….………..…………. (10)

2.7. Organization Hierarchy Chart…….……….…………………..………………………. (11)

2.8. Departments of Organization……….……….…………………………………..…...... (12)

2.9. Comments on Organization Structured….…….……………………………....……… (15)

Chapter 3. Plan of Internship Program.…………...…..………............................ (16)

3.1. Internship Scheduled………………………..….………………….………..…..……. (16)

3.2. Branch Profile……………………………………………..………..….………….….. (16)

3.3. Branch Staff Structure…………………… …………………..…………….….…… (17)

Chapter 4. Internship Training Program.….………...…….…………..….......... (18)

4.1. The operations/activities performed by the department…………..…..…………….…... (18)

4.1.1. Activities performed in Cash Department…..……….………………….……………. (18)

4.1.2. Activities performed in Operations Department……...………….….……...…..…….. (18)

4.1.3. Activities performed in Sales Department……..…………………….……………….. (20)

VII
 4.2. Projects/ Tasks assigned to me during training Program………………..………….….. (21)

4.2.1. Direct Marketing….……………………………..…………………….……………… (22)

4.2.2. Filling and Completing Loan Forms……………………...…….………………….…. (23)

4.2.3. Account Opening……………………………………………….………………….…. (24)

Chapter 5. Internship Training Workout.…………...…..………........................ (26)

5.1. Reflective Journal Entries……..……………………….……………………..……….… (26)

5.1.1. First week….……………………….………………………………………….. (26)

5.1.2. Second week.………………………………………………………………….. (27)

5.1.3. Third week….…………………………………………...…………………….. (28)

5.1.4. Forth week…………………………………………...………………………... (30)

5.1.5. Fifth week……………………………………………………………………... (31)

5.1.6. Sixth week…………………………………………………………………….. (32)

5.1.7. Seventh week………………………………………………………………….. (34)

5.1.8. Eighth week…………………………………………………………………… (35)

5.2. Challenges during the internship………………………………………………….…... (37)

5.3. Skills used during Internship……………………………...…………………….....….. (38)

5.4. Skills gained during Internship……………...……………...……………………..….. (39)

5.5. Critical Analysis……..…………………………..…………………..……………….. (40)

Chapter 6. Learning Outcomes………….………………...…………….............. (41)

6.1. SWOT Analysis………………………………….…...………………………….……. (41)

6.2. Recommendation & Suggestions…………….……………..…………...……….…… (42)

6.3. Conclusion……………………………………………..……....……………………… (44)

Chapter 7. Attachments to Report……….….….…..……………….................... (45)

7.1. References & Sources……………………..…….……………………………………. (45)

7.2. Annexes………………………………..…………………………….……………...… (45)

VIII
 Chapter 1; Overview about the Organization.

1.1 Introduction through the Historical Perspective.

The First Microfinance Bank is a product of twenty years of partnership of the Aga Khan Rural

Support Program (AKRSP) - a private, non-profit organization- with the communities of the Northern

Areas and Chitral District of Pakistan. Hence, it is deemed necessary to first present a brief

introduction of AKRSP and create the setting for the First Microfinance Bank.

The Aga Khan Rural Support Program was established by the Aga Khan Foundation in 1982 with the

mission to alleviate rural poverty through promoting sustainable livelihoods of the mountain

communities of Northern Pakistan. The program area is rugged and mountainous, located among four

of the world highest mountain ranges, - the Himalaya, Karakoram, Pamir and Hindukush. It has a

combined population of above one million (more than 11,000 households) living over 1,000 villages

and scattered over 74,200 sq. km. An estimated 90% of the region’s population makes its living from

subsistence farming. Income from agriculture is insufficient to sustain most families at even a
subsistence level, and has to be supplemented by off-farm income.

AKRSP enters into a partnership for development with villagers of its project area in return for a

demonstrated commitment to establish Village or Women Organizations (V/WOs) and rely on them

as the primary vehicle for village development.

There are both formal and informal sources of credit accessible to rural inhabitants of Northern

Pakistan. Shopkeepers are the most common source of informal credit while the Agriculture

Development Bank, commercial banks; cooperative banks and AKRSP are the institutional sources.

AKRSP first began providing credit services to the poor farmers in 1983, beginning with a small

amount of funds from its own resources. The products introduced were directed to meet the needs of

the communities- Corporate Village Organization Credit (CVOC), Enterprise Credit Program (ECP),

Micro Enterprise Credit Program (MECP), Short-term Loan (STL), Medium Term Loan (MTL) and

Village & Women Organization Credit Program (V/WOCP).

1
In 1998, all the above loan products were eliminated and replaced by two products Individual loan and

Group loan on the basis of sixteen years experiences. During the year 2001 two new products, Business

Group loan and Business Committee loans were launched to see the need of micro-entrepreneurs in

market towns of Northern Pakistan. When First Microfinance Bank established, the bank is using all

the four loan products of AKRSP (Microfinance Section) as a loan Product of Bank.

In 1994 AKRSP decided to seek a license for a ‘microfinance bank’ in order to create a sustainable

institution with the capacity to provide a complete range of microfinance services and not just credit,

to the communities of Northern Pakistan as well as the rest of the country’s poor population,

particularly women.

The mission of the First Microfinance Bank is to provide sustainable services to the people of Pakistan,

particularly to vulnerable groups such as women, based on financial products. It is making accessible,

retail services to underserved rural and urban populations and wholesale funds to other organizations

with the same commitment. It is aiming for a high level of outreach through the country, at the same

time covering its inflation-adjusted costs from its own revenues over the long term. Particular

emphasis is being placed on building up a sound deposit base, recognizing that learning to save

regularly and promoting financial discipline is the key to helping people graduate out of poverty.

The First Microfinance Bank began operating in January 2002, but is preceded by work undertaken

by AKRSP in credit provision, since 1983.

The main purpose of the First Microfinance Bank is to provide easy doorstep service to the rural as

well as urban communities of Pakistan. Therefore, the First Microfinance Bank is starting a mobile

banking system throughout Pakistan, particularly in remote rural areas. Every individual will be able

to benefit from the deposit, credit, remittance and other financial services.

All the products have been designed for rural & urban communities based on research and experience.

The most vulnerable group of the society in Pakistan, especially in Northern Pakistan is women. There
are equal opportunities for men and women in AKRSP & First Microfinance Bank.

2
There is no any kind of financial institute, which is directly focused on that group. Secondly, according

to the policy of bank, the bank will work 60% with women and 40% with those people whose income

are less than $ 85 per month.

The First Microfinance Bank is owned by AKRSP and the Aga Khan Fund for Economic

Development. It will operate on a national level, opening 30 branches all over the country in the first

five years. Half of the branches will be in Northern Pakistan, as it absorbs AKRSP’s existing program.

Some experts of First Microfinance Bank are also working outside Pakistan, the micro-credit program

of Aga Khan Development Network Afghanistan being one example. It is expected in future, that

AKDN will launch regional microfinance banking system in Pakistan, Afghanistan and Central Asian

countries.

1.2 Background Overview.

The First Microfinance Bank Ltd. (FMFB) came into existence in November 2001 as a non-listed

public limited company and as a licensed Microfinance Institution (MFI) under the provision of the

Microfinance Institutions Ordinance 2001 in January 2002.

The initial sponsors of the bank included the Aga Khan Support Program (AKRSP) and the Aga Khan

Fund for Economic Development (AKFED) with a start-up capital of Rs. 500 million Later on the

International Finance Corporation (IFC) joined the venture in September 2002 with an additional
capital of Rs. 160 million raising the total capital to Rs. 660 million (US $11 million).

FMFB was created to expand upon the highly successful Aga Khan Rural Support Program (AKRSP)

which had served the populations of Northern Pakistan since 1982 and contributed significantly

towards the objective of poverty alleviation.

The bank operates on the principles of long-term sustainability and broad outreach, in terms of services

and beneficiaries, in order to attain maximal impact.

3
FMFB’s central mission is to reach out to the vulnerable urban and rural communities, particularly

women, who are currently not able to receive adequate financial services from the formal institutions.

FMFB seeks to marry entrepreneurship with capital formation. It wishes to give people scope to

expand their economic base, and over time, to support diversification beyond traditional small

enterprises. It aims to provide to the poor, particularly women, opportunities to access credit, thereby

enhancing the welfare of their families and their contribution to the economy.

1.3 Microfinance in Pakistan.

The financial sector landscape continues in most developing countries in the Asian Pacific region with

continuing liberalization, improvement in information technology and increasing competition in the

sector. The expansion of microfinance during the last decade has added a new dimension to these

changes in many countries because it is gradually allowing access by the poor and low income

households to institutional financial services for the first time and is therefore setting in motion, a

process towards ending their financial exclusion.

Formal credit and savings for the poor are not recent invention. For decades, underprivileged and

marginalized customers-neglected by commercial banks-have been served by credit cooperatives and

development finance institutions. These organizations have legal charters that govern their financial

operations and allow them access to savings or other public funding.

But the past two decades have seen the emergence of powerful new methodologies for delivering

microfinance services, especially micro credit. Much of this innovation has been pioneered by non-

governmental organizations (NGOs). However, governments, donors and practitioners are now talking

about new legal structures for microfinance in many developing countries. Microfinance regulation

and supervision has suddenly become a mainstream development agenda with an international

spotlight.

4
The banking approach also enables the generation of a much stronger institutional ownership; this

provides the strength and the ability to maintain a balance between the community, institutional

interest as well as the option to offer stocks to the general public.

It is undoubtedly more conducive to striking a balance between the corporate and social mission of

the institution and assists in maintaining equilibrium between achieving profitability and maintaining

its focus on serving the marginalized urban and rural sectors.

Today microfinance industry is at crossroads- poised for transaction on a grand scale yet unable to

achieve it, it is time for another revolution, one that will mainstream microfinance. The ultimate goal

is to catalyze the development and implementation of standards and Infrastructure that will mainstream

microfinance making small loans, savings and the financial vehicles available to all types of people

everywhere, regardless their economic status.

The primary beneficiaries of this initiative will be the worlds underserved urban and rural poor,

especially entrepreneurs and their families. It is our goal to integrate existing solution components and

develop new pieces to fill existing gaps, it is believed that successful implementation will enable

microfinance industry to move from its current ability to serve 40 – 50 million people.

This industry or movement - as some call it – has created an important nexus between diverse groups

of individuals all around the world. These partnerships have included poor households. Leaders of

microfinance institution, donors, microfinance networks, finance ministers, central bankers and indeed

commercial bankers. And it is partnerships like these that have put Pakistan on to map of

“microfinance friendly” countries, and helped to construct institution and financial architectures that

support the inclusion of larger numbers of rural and urban poor in to the institutions of relevant

financial systems that promote access to viable financial services for millions of poor families.

5
1.4 Policy of Organization.

 Foster an open door policy, which encourages interaction, discussions and ideas to improve

the work environment, thus increase our productivity.

 Be an institution to promote habit of savings amongst the under privileged and optimize return

on their resources.

 Be a bank, which adopts best practices in all its endeavors.

 Deliver competitive, impeccable service to our customers.

 Make “Do it Right the First Time” Bank commitment as a team will assure continued growth

and prosperity.

1.5 Competitors in Pakistan.

 Khushali Microfinance Bank.

 Tameer Microfinance Bank.

 NRSP Microfinance Bank.

 Apna Microfinance Bank.

 Rozgar Microfinance Bank.

 Pak-Oman Microfinance Bank.

 Kashif Microfinance Bank.

 Advans Pakistan Microfinance Bank.

 Waseela Microfinance Bank.

 National Rural Support Programme Bank.

 Ufone Microfinance Bank.

 Jazz Microfinance Bank.

6
 Chapter 2 Profile of the Organization
2.1 Vision.
To enable the disadvantaged population to build a sound and secure future with dignity and pride and

not merely to survive; alleviation of poverty through sustainable economic development.

 Mission

To help strengthen the entrepreneurial base of the economically disadvantaged population across the

country by seeking to marry entrepreneurship with capital formation in not only rural areas but also

the major population centers.

To provide people the scope to expand their economic base, and over time, to support diversification

beyond traditional small enterprises.

2.2 Core Values:

Trust.

Respect.

Integrity.

Professionalism.

The Bank will endeavor to introduce good practices, ethical precepts and the highest standards of

rectitude in the conduct of business and will remain respectful of the needs of the poorest segments of

society.

7
2.3 Strategic Objective:

Outreach; Increase access to financial services to the poor populations in urban and rural areas,

particularly women.

Sustainability; Ensure permanence of services to the poor by covering inflation adjusted costs only.

Impact; Careful targeting, monitoring and evaluation, and development of social indicators to

maximize impact on the poor.

Transparency; Good practices, integrity, ethical precepts and highest standards of rectitude in

business conduct.

2.4 Business Development Services (BDS).

Based on its vision, FMFB has institutionalized Business Development Services as an integral part of

its operations. The BDS activities focus on developing entrepreneurial capacities and providing

opportunities for capital formation to the chronic poor segment, which in turn will make them
bankable.

Undertaking an intra-enterprise approach, FMFB currently offers market-driven intensive business

startup and management trainings coupled with mentoring services to facilitate business set up and

growth.

 Reaching Out with the Pakistan Post.

The First Microfinance Bank entered into a unique and innovative partnership with the Pakistan Post,

whereby FMFB will be utilizing 4000 Pakistan Post Offices to increase access and outreach to quality

and sustainable microfinance services for the very poor and vulnerable populations, especially women,

residing in the rural and rural areas of Pakistan.

8
2.5. Products and Services;

FMFB offers an evolving menu of products and services to meet the unique needs of the poor

population.

Micro Credit (Loan) Services.

 Cash flow based lending in line with borrower’s requirements.

 Solidarity approach/Village Organizations.

 Focus on Women entrepreneurs.

 Social collateral only.

 No legal procedures.

 Quick loan processing.

Loan Products

 Village Group Financial Services.

 Urban Group Financial Services.

 Housing Finance.

 Micro Enterprise Finance.

 Low Salary Employees Loan for Private.

 Micro Pensioner Loan.

 First Karubari Sarmaya.

 First Kisan Sarmaya.

Savings and Deposits Services.

 Account can be opened with PKR 5/= only.

 No minimum balance required

 Safety and security of funds

 Competitive / Market based rates of return.

9
Savings Products.

 First Gharana Bachat Account (PLS Saving Account)

 First Current Account.

 First Term Deposits.

 First Micro Cash Maximizer.

 First Special Micro Saving Certificate.

 First Bachat Tanzeem

Insurance.

Offered with credit and saving services to reduce vulnerability to life cycle events and shocks.

Outstanding loan amount written off in case of death or permanent disability. In addition, the family

receives:

Rs.10000 in case of natural death.

Rs.20000 in case of accidental death.

2.6 Main Offices.

FMFB Head Office, Islamabad. (Country Office).

(Sindh Region Offices).

 FMFB Regional Office Korangi, Karachi, Sindh.

 FMFB Area Office Clifton, Karachi. (Lower Sindh-1)
 FMFB Area Office, Hyderabad. (Lower Sindh-2).
 FMFB Area Office, Sukkur. (Upper Sindh-1).
 FMFB Area Office, Ranipur. (Upper Sindh-2).

10
 2.7 Organizational Hierarchy Chart.

The First Microfinance Bank Ltd.

President

Departments

Product Finance Business Operations

RMD Admin Audit HRD

 Country Head.
Fig.1 The First Microfinance Bank Organizational Structure.
 Regional Head.
 Vice President.
 Area Manager.
 Assistant Vice President.
 Managers
 Asst. Manager
 Team Leaders
 Branch Operations Incharge.
 Teller

11
2.8 Departments of Organization.
 Risk Management Department.
Risk Management is a discipline at the core of every financial institution and encompasses all the

activities that affect its risk profile. It involves identification, measurement, monitoring and controlling

risk to ensure that:

 The individual who take or manage clearly understand it.

 The organization’s risk exposure is within the limits established by the management.

 Risk taking decisions are in line with business strategy and objectives set by the management.

 Risk taking decisions are explicit and clear.

 Sufficient capital as a buffer is available to take risk.

The mission of risk management department is to develop strong culture of internal control among

FMFB staff and provide excellent services to clients by adopting a systematic approach to identify

measure, monitor and manage credit, FMFB is now able to effectively highlight identify and prioritize

risks and further develop strategy to measure and mitigate the prospective risks.

 Internal Audit & Compliance Department.

Audit department play a key role in every organization. The audit department of FMFB independently

appraises activity within an organization for the review of operations as a service to management. The

Major role of FMFB audit department is as:-

 To ensure compliance with the process and guidelines.

 To add value to the process and system.

 Offer advise at every stage of the implementation of the policy especially compliance with the rule

of the game, university and government contract procedures, statutory deductions like taxes and

approval limit.

12
  Administration Department.

The Administration Department is responsible for a wide range of administrative services including

property management, setup of new branches, cost-effective procurement of goods and services,

Logistic Support etc.

Transformation of Administration Department into a dynamic, professionally sound and time efficient

Department capable to play meaningful role in achieving FMFB‘s objectives by planning, direction

and coordination of Management according to maximum strategic use of human and material
resources.

Services provide by Administration Department.

 Property management.

 Branch Setup.

 Procurement.

 Logistic Support.

 Maintenance

Logistic Support provide by Administration Department.

 Travel arrangements.

 Air ticket and hotel arrangement.

 Training Arrangement.

 On time and safe delivery of asset and other items.

 Process of expense claims.

 Supplier complains.

13
  Credit Department.

Credit (Loan) is the most important function for the bank and has thus being given the Maximum

weight age in the rating methodology. This function deals with the issues of and the rating is based

on;

 Framework for loan management.

 Lending Policies & Procedures.

 Credit analysis.

 Credit administration.

 Credit monitoring.

 Credit delinquency & Credit collection.

 Credit Committees at branches.

 Physical verification of borrowers.

 Portfolio at Risk.

 Adherence to internal & external legislation

 Cash Department.

The evaluation of cash & collection involves;

 Cash receipt procedures;

 Cash withdrawal procedures;

 Safe/ vault operations;

 Safe keys maintenance;

 Cash count;

 Fund Transfers procedures

14
  Operation Department.

Account openings since it’s a very sensitive part of documentation. It checks whether the

administration is abiding by the rules and Regulations. It keeps a track if the documentations are

complete and account opening.

Forms properly filled .The various activities include;

 Adherence with Prudential Regulations.

 Account Opening forms properly filled with relevant information.

 SS cards completed and scanned.

 Deduction of Zakat according to prevailing laws.

 Deposit rates are correct & profit credited according to policy.

 Term Deposit forms completely filled & requirement of changes in Signatories.

 Account c closures marked properly in the system.

2.9. Comments on Organization Structure.

Organizational structure of the First Microfinance bank of Pakistan is centralized. I have to face the

organization structure which was highly Managerial in which there is centralized decision making

authority and you just have to obey the order no matter, right or wrong beside this at the end incumbent

is the only person who will be responsible for the results so, you have to act according to the situation

and have to remain vigilant. Speaking about the FMFB Sukkur office, the central authority in the hands

of Area Manager (AM) for the whole Area’s Branches operations, and Sukkur branch office is under

supervision of Branch Manager.

I think the FMFB uses the fine organizational structure hierarchy, where the risk of mistakes is

minimized because as I noted in the Sukkur office, there are various checks for the making the each

task. The staff officers make the transections but those transections should be authorized by head of
the unit to process the transactions. Concisely, the FMFB uses the right organization structure.

15
 Chapter-3 Plan of Internship.

3.1 Position.
Internee (As per scheduled for the requirement of University)

Bank Location Information.

Following are the related information regarding to the location status of Bank.

City; Sukkur

Branch Status; Sukkur office

Address; D-516-176, Sukkur Branch office, Near Ghanta Ghar, Biraj Road, Sukkur, Sindh.

Contact; +92 0715617149

sukkur@mfb.com.pk

3.2 Duration of Internship.

It was about two months Internship Program.

Starting date of Internship; 6th of the month July during the year of 2017.

Ending date of Internship; 6th of the month September during the year of 2017.

Departments of Branch.

Two types of department available in the Branch.

 Cash Department.

 Operation Department.

 Sales Department.

16
 3.3. Sukkur Branch Staff Structure.

The First Microfinance Bank Sukkur Branch

Branch Manager

Mr. Ghulamullah Bhutto

BOM CO RM/TL

Mr. Yaseen Ahmed BBO Mr. Akram Mangi Mr. Naveed Ahmed Unar

Miss. Noor-Ul-Ain

TELLER LOAN OFFICER

Miss. Tarana Mr. Hussain Ahmed Sundarani

Mr. Muneer Ahmed Ansari

Miss. Farhana Baloch

Mr. Kalimullah Sundrani

17
 Chapter-4 Internship Training Program.

4.1 The operations/activities performed by the department.

4.1.1 Cash department;

 Functions of Teller:
Handles the cash management system within the branch to take payments from the customers and to

make payments to the customers. Cancellation of cheques and other instruments after proper scrutiny.

Reconcile all cash transactions at the end of the day. Ensure transactions and activity reports are

accurate and complete. Ensure loyalty to all regulatory guidelines while making/receiving payments.

Handles all customers’ requests in timely manner. Looks for ways to improve efficiency and reduce

turnaround time. Ensure that the instrument for payment is in order/valid and carry no defect.

Maintain and balance petty cash vouchers on monthly basis balancing the cash books before leaving

the seat temporarily during the day and at the day end. Lodgment of outward clearing instruments

and scrutiny of inward clearing instrument. Ensure establishment and maintenance of the strong

rapport with the client. Ensure post sale service to the client.

4.1.2 Operations department;

 Functions of Branch Operation Manager:

Managing cash requirement of the Branch in liaison with HO. Responsible for supervision of all

operations functions like account opening documentation, /Loan documentation, cash

receipt/payments, clearing/remittance, branch security and cleanliness/general maintenance etc.,

Ensuring correct and timely implementation of HO circulars. Supervise custody and record keeping

of Cheque Books / Security stationary /Loan documentation.

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Ensure that all the processes are completed successfully before the end of the day. Supervise branch

administration related work. Ensure service delivery within the agreed turnaround time. Ensure secure

maintenance and restricted access of all customers’ account/signature documentation. Ensure all

operations staff is aware of internal and external regulatory framework and it complied with

Monitoring of all outstanding suspense accounts. Immediate reporting and follow-up of fraud /

forgery ,litigation and AML, KYC, policy deviation with RO/HO. Ensure timely reporting of

different periodical statements/returns to RO/HO or any other information asked for time to time.

Ensuring resolution of compliance observation / audit reports.

 Functions of Branch Manager:

Enhance the branch’s business by increasing the number of profitable accounts/relationships and

increase revenue & profit. Along with the Regional Executive, plan, manage and execute a strategy

to achieve target financial results and a quality of service superior to competitors which is in line with

KMBs service quality benchmarks. Ensure adherence to KYC and Anti Money Laundering guidelines

while initiating and reviewing customer relationships. Act as mentor to all staff in the Customer

Services by answering queries in relation to procedures, policy etc. Maintain high level of staff morale

through support, direction and coaching. Ensure a high level of customer service. Ensure compliance

to internal policies and procedures. Achieve an overall favorable audit/compliance rating. Discuss

and set Specific, Measurable, Attainable, and Realistic & Time based goals for staff working under

him and monitor their performance in line with their set objectives. Discuss and undertake the annual

appraisals of all reporting staff. Retain and grow share of existing customer base to sustain and

increase profitable business by:

 Retaining profitable existing set customers by consistently meeting or exceeding customer

expectations.

 Pro-actively developing and maintaining a detailed understanding of customers business and

financial service needs.

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  Functions of Branch Business Officer;

Retaining profitable existing set customers by consistently meeting or exceeding customer

expectations. Pro-actively developing and maintaining a detailed understanding of customers business

and financial service needs .Responsible to guide customers about different products, Bank policies

and requirements regarding different types of accounts. Replying to customers queries regarding

Account opening Form.

Account Opening Form, receipt of initial deposit, input into the system, generation of Account

number. To make sure that KYC should be properly filled in. To make sure that the entire specimen

signature cards should be scanned properly. Issuance of different types of certificates. Responsible to

process and check that all Cheque books are delivered on time without any printing error. Responsible

for all account closing and to make sure that the charges should be deducted and profit (if any) paid

before closure. Ensure establishment and maintenance of the strong rapport with the client. Ensure

post sale service to the client.

4.1.3 Sales Department:

 Functions of Loan Officer:

Find potential clients individuals or businesses in need of loans.

Establish strong rapport with the clients.

Act as salesperson, persuading clients to obtain loans.

Help clients apply for loans.

Analyze and verify the application to determine the client's worthiness.

To complete documentation as per banks policy.

To get the approval before disbursement from the BCC.

Disbursement of loan after complete satisfaction of related formalities.

Help client understand loan repayment schedule.

20
Manage the repayment schedules of customers for timely recovery of their monthly installments.

Follow up on delayed installments.

 Functions of Team Leader/Relations Manager:

To arrange for appointments and visit existing and new potential clients.

To sell the liability products to the existing and potential clients.

To resolve customer queries and present acceptable solutions.

To provide marketing and promotional material to prospective clients.

To achieve all business targets within allocated time.

To search for references from existing clients.

Facilitate problem solving and collaboration.

Encourage creativity, risk-taking, and constant improvement.

4.2 Projects/ Tasks assigned to me during training Program and policies that I
used to complete them.
While I was doing my internship at FMFB I noticed that the theoretical concepts that I have studied at

SALU were implemented in almost the whole Branch. The theory and the examples that I studied in

financial accounting about Bank Reconciliation, ledgers, balance sheets were actively and strictly

followed. The defined hierarchy of the organization was strictly followed. POLCA function was at its

best, the manager of the Bank plans, controls and defines the work flow and ensures that the staff is

doing its best. I noticed that our Manager was following Theory X as he was keenly observing each
and every staff activity and was also angry sometimes.

The activities mentioned above gave me experience and learning opportunities. Manager was working

as a true leader and was guiding the team very positively, sometimes as he was a short tempered person

and followed all the rules and regulations so I can say that he was a very strict Manager.

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During my 2 months internship programs I have learnt a lot about the functions and operations

performed by the operational manager and other staff members of bank. Some of the main tasks or

assignments that management facility assigned me to do are discussed below.

After two weeks of my joining date the first task the branch manager assigned me to make at least two

groups of customer by marketing the products and features of loan process of bank. For completing

this I followed the process of Direct marketing Policy.

4.2.1 Direct Marketing;

My approach to solidarity group lending is through effective direct marketing/personal selling and

awareness program. Because without proper marketing, financial services shall not start. For the

purpose of making the groups before visiting the area I contacted with social activist/local

representative /respectable elder. I also explored Mohallah/business Committees for Bank’s financial

service marketing. Mohallah/business committees are prepared market for microfinance service

delivery, I meted individuals of the area, and informal groups to conduct door to door marketing. And

with grace of God I found 10 people who are willing to take loan from the bank.

First of all I introduced them about bank introduction, vision, mission, objectives, policies, procedures,

financial products and services delivery mechanism and competitive advantages of the bank in a

comprehensive manner so that communication is clearly listened, understood by the audience.

Communication Package, then I asked them for dialogue/bank introduction meeting and fixed time,

date and venue/place for meeting in future date. And in last Bank printed pamphlets (loans & deposits)

I distributed among all. This was in Urdu or local language version.

On next day, potential clients visited FMFB branch after group formation in order to complete their

loan documentation (Loan Application Forms) and establish relationship with bank for long term. I

welcomed them and introduced them with branch manager with that my task have been completed.

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The day after completing the first task the second task assigned for me to meet the clients that are

coming to branch for loan, brief them about the bank loan process, check the all requirements, verify

all documents by seen originals, fill their forms and arrange them in groups.

4.2.2 Filling Loan Application forms and meeting with the group members;

First of all I meted all members individually and organized meeting in U shape, after that I asked

individually for what purpose they want loan and analyzed them during communication conversion

then after introduced them about bank introduction, vision, mission, objectives, policies, procedures,

financial products and services delivery mechanism and competitive advantages of the bank and

overall loan process.

After given briefly information about the bank process I took the following requirements by the

customer in order to apply for the loan:

 Three passport size photo of customer.

 One CNIC Copy of customer.

 Two CNIC Copies of Customer Kens.

 Nadra verysis.

 Customer loan History.

 ECIB statement. (Electronic credit information Bureau)

 Filled one month salary cheque (in case of Third Party Loan Application)

 Photo copy and Original Pension Pass book ( In the case of MPL)

After completing the documentation requirements I filled the forms of every one individually and

properly by getting all information that required for filling the form completely.

Different type of forms were filled that are mentioned below.

 Checklist form.

 CIF Form.

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  Loan Application Form.

 Account Opening Form.

 Loan Appraisal Form.

After completing the forms of all I took sign or thumb of individual on their each form and informed

them for further process and said good bye to them, my task was also complete by completed the form.

4.2.3 Full Account Opening Process: Thirdly, from 6th week of joining I have assigned a task to open

different type of accounts and particularly to open current account.

Before starting opening an account, I shortly interviewed the client that which type of account he or

she is wanted to open, then a sample of their signature is taken in order to decide whether he or she is

eligible for opening photo or non- photo account.

If the customer’s signature is shaky, photo account is opened and if the customer has original sign

which means some symbol which is not easily copied by others, non- photo account is opened. The

things required to open an account in case of photo account are three passport size photos, CNIC and

the CNIC of Next Of Kin which means that if the customer dies, he or she will maintain the account

on behalf of the client In case of non-photo account, other things remain same just passport size photos

are not required. After providing the required documents, a person is eligible to open an account.

Account opening form consists of following documents:

 Check Book Requisition.

 One Specimen Signature Cards

 Account opening form.

 KYC (Know Your Customer).

 Indemnity for Urdu or shaky Sign (if required).

 Indemnity for sign changing Sign (if required).

 NADRA Verysis (if required).

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Cheque Book Requisition: The purpose of cheque book requisition is to fulfill official requirements

on the time of issuance of cheque book to the customer. It consists of two options whether the cheque

book is issued to the customer itself or to any other person or blood relations, but they mainly focus

on issuance of cheque book to the customer itself because it involve less risk.

Specimen Signature Cards: It is used to admit the customers signature for the purpose of opening

account, if the signature of customer is in Urdu or shaky, two passport size photos are paste on

Specimen Signature cards, but if the signature of the customer is original which means it is not easily

copied by others, non- photo account is opened and customer signature is taken two times on SS cards,

and put the stamp of Signature Admitted on the center of SS cards

Account opening form: Account opening form consist of the necessary information about the

customers like residential address, permanent address, contact numbers, account number, name and

NIC number of the customer and name of customer parents and the name and address of Next Of Kin

which means if the customer dies or becomes insolvent, he or she will pay the amount of loan taken

by the customer, or in case of any fraud, he will be responsible to pay that amount.

25
 Chapter-5 Internship Training Workout

5.1 Reflective Journal Entries.

Early in the morning of 6th July, 2017. Normally I wanted rest and recreation after this tiring exams in
June but this time I am anxiously waiting for the start of Internship. I have completed own Eight weeks
practical training till September 6th, 2017.

5.1.1. 1st Week. (Manual Study).

At the first day of my internship I reached bank at 08; 45 am, 15 minutes before bank opening time.

Firstly I went to the office Branch Mr. Ghulamullah Bhutto and showed him my internship letter. After

reading my letter he said me “Welcome to FMFB Sukkur Branch” then interviewed me by asking the

different type of questions from the subjects of Finance, Management, Marketing, Business, and

Banking etc.

With the end of interview he dialed a Phone call and called him/her to come in office. After 5 minutes

a lady came to office, manager introduced myself to her and herself to me as my internship Trainer

named Miss. Noor-ul-ain working at the designation of BBO in the Branch Operation Department.

I visited the whole branch by following the BM and my trainer, they introduced myself to remaining

staff of branch excluding their selves and shortly described functions and activities of all departments

and its staff members. After visiting I came to operation department along with my trainer. She also

interviewed me for an hour by asking different questions regarding to my subject studies, IQ level &

General Knowledge.

Having more than two and half hours in bank finally Miss. Noor-ul-Ain started my first lecture by

introducing the Bank and my whole first week came to end only on the manual study about the bank

functions, operations & process.

26
Following are the main topics that I learnt during my first week of internship.

 Introduction & History about Bank.

 Bank Objectives, Goals, Products & Services.

 Bank Business and Marketing.

 Bank Loan Procedure & Requirements.

 Customer verification Procedure.

 Customer residence verification Procedure.

 Accounting Maintenance and Cash Disburse process.

 Usage of Branch Stamps.

 Guidelines from Bank Operation and Credit Manual.

5.1.2. 2nd Week (Practical Work).

The first week was very enjoyable, as each day I got to know and observe new functions and activities

performed by the staff of bank. The First day of my second week started with the test conducted by

my trainer from the manual course learnt by me in first week. And with the grace of my God I did the

test in very nice manner and satisfied my trainer by giving valid answers. In second week after

completed manual training, finally my practical training was start. The functions and activities that I

learnt and done during second week of my internship are listed below.

 File Tagging.

 Stamp Updating & Uploading.

 Printing & Dispatching Of Statement of Accounts.

 Statement of Account on Customer's Request.

 Filling deposit slips & cheques.

 Cheque Book & ATM entry.

27
All the activities that are listed above were quite easy to perform but one of them file tagging was a

lengthy process. In that, I first carefully read the all forms attached in the file and completed them if

anything is missing from the file, then opened the pin of file and rearranged all the forms in a format

told by my trainer, and then used glue stick to paste the photos and CNIC copies on each form on their

specific place.

After that I rechecked the whole file one more time, after my checking my trainer also overviewed the

file after that I put the all required labels and paste all the stamps on the all forms of file, with that file

tagging process was completed. I tagged about 150 files during that week. In second week I managed

to learn few things as compared to first week due to the presence of the team of audit that was came

to the branch for the purpose of annual internal auditing because my trainer and other staff member

were busy in completing their remaining work.

5.1.3. 3rd Week (Sales department Practical Work).

During third week of my internship I shifted towards the department of Sales and Business under the

supervision of Miss. Farhana Baloch. She is very good in nature and quite good in communicating

with the clients. Miss. Farhana firstly asked me about the different types of loan bank provided and

procedure, I answered her with a short description of all types of loan and its procedure that I learnt

from the “Credit Manual of Bank” in my first week, also from the lectured delivered by my trainer.

After this Miss Farhana briefly described the all type of forms that are used to complete the loan

application of applicant or customer. She taught me how to fill the form then after what are the

requirements to fill the form and way to communicate with customers.

Suddenly, a group of five women came to branch with their entry Miss. Farhana said me let’s start

with Group Loan. Miss. Farhana filled their forms and showed me how to fill the form.

28
The number of things that I learnt during the third week of my training are outlined below.

Group Loan.

 Group Formation, Size and Limits.

 Dialogue Delivery.

 Direct Marketing.

 Know Your Customer.

 How to fill loan form.

 Full fill the necessary documents required.

 Nadra Verysis.

 Electronic Credit information Bureau (ECIB) form.

 1st, 2nd & 3rd meeting with the client. (Communication/ Dialogues)

Housing Finance

 Dialogue Delivery.

 Direct Marketing.

 Know Your Customer.

 How to fill loan form.

 Full fill the necessary all documents required.

 Nadra Verysis.

 1st, 2nd & 3rd meeting with the client. (Communication/ Dialogues)

On third day of third week of my joining date the branch manager assigned a task me to make at least

two groups of customer by marketing the products and features of loan process of bank and I done that

task successfully by using the direct marketing policy of organization.

On next day I completed my second task assigned by team leader Mr. Naveed Unar to fill the forms

of clients coming to the branch and informed them about the loan procedure of bank, briefly introduced
them about all the products, insurances and services provided by the bank in this competitive market.

29
Third week was quite very much profitable for me during that I learnt very much about bank credit

procedure and policy, and increased my communication skills by delivering information to people by

completing the task. During that week I also enjoyed a lot by attending the party given by Area

Manager Mr. Zameer Hussain to SO Shikarpur by getting 3rd Position in overall Pakistan SO’s

branches of FMFB.

5.1.4. 4th Week (Sales Department Practical Work).

In this week I stayed in sales department, during that week under the supervision of Miss. Farhana,

Mr. Kalimullah Sundrani, Mr. Hussain Sundrani, Mr. Muneer Ansari (A-MFO’S) and Mr. Akram

Mangi (CO) taught me remaining other types of loan, their procedure, features & field work. List of

the works that I learned during that week are mentioned below;

 Micro Enterprise Finance (Form filling process, & Documentation).

 Roshan Zar (Form filling process, & Documentation).

 Low Salary Employees Loan for Private (Form filling process, & Documentation).

 Last 5 Months Salary Bank statement.

 Micro Pensioner Loan (Form filling process, & Documentation).

 Pension Book (Original).

 One signed Check.

 Client Residential Verification Process.

 Physical Verification.

 Loan Approval Process.

 BCC & ACC Case Features.

On dated 27th of July, the First day of 4th week of my internship under supervision of Mr. Muneer

Ansari I learned about the MEF and filed the form of MEF client and then went to Old sukkur for

recovery along with Miss. Farhana & Mr. Hussain Sundrani to learn the way of talking they are using
to customer for the recovery of remaining 2 Months loan instalments.

30
On 2rd & 3rd day of that week I went to Local areas of Sukkur for giving follow up to clients, client

residential verification & for the recovery with Mr. Akram Mangi, Mr. Kalimullah & Mr. Hussain

Sundrani. And on dated of 1st August & 2nd August towards GPO Sukkur & NBP Sukkur.

During that week I also enjoyed a lot by attending the Birthday celebration party of Branch Manager

Mr. Ghulamullah Bhutto on 1st of August & Training Session with dinner party at Taj Mahal

Restaurant, Sukkur on 2nd of August, 2017. Trainer was the representor of Jubilee Insurance Company

Mr. Bilal Ahmed, who are came there for the purpose of launching new medical insurance program

for the clients of FMFB at Sukkur Branch. After doing the field week one thing I realized that Field

work is not an easy task to do in hot days especially of July and August.

5.1.5. 5th Week (Practical Work).

During the 5th week of my internship I have learnt all about the lending process by using Flex Cube

Software.

 Lending Process.

 Individual CIF Creation.

 Group CIF.

 Account officer tagging.

 Account Opening. (Repa Only).

 Signature Uploaded.

 Collateral.

 Gold Collateral.

 Settlements.

 Loan Booking.

 Disbursement.

31
On first day of this week, Mr. Saleem taught me how to create individual CIF, requirements used to

create the CIF, and finally to create the Group CIF in case of group loan. On 2nd day of this week I

shifted to the operation department under the supervision of Mr. Yaseen Ahmed Chachar (BOM) for

the sake of training about how to open the account, what types of accounts could be opened in bank

and what are the requirements for opening the account. Firstly, he taught me only about the Repa

Account then about the signature uploader procedure. After learning the process of account opening I

shifted back towards the sales department collateral & Gold collateral. Mr. Saleem gave me a great

lecture and showed me the process of settlement and loan booking.

Then after for the last I came once more to operation department. This time Mr. Yaseen taught me

about the disbursement process and gave me some cases to disburse for the practice.

During that week I have created the 20 individual CIF’s & 3 group CIF’s, opened the 30 Repa

Accounts & uploaded signature by scanning SSC card, and in last disburse 5 loan cases.

5.1.6. 6th Week (Practical Work).

After having the 5 weeks of internship training I was able explain that practical work is quite different

from the university classes’ course, in university we are bound to follow the procedure and policies of

doing any activity or work, but in practical we can make our own simple and easy procedure to do,

and policies to adopt better and effective as compared to earlier one.

In sixth week of internship I was transferred to operational department. Mr. Yaseen Ahmed Chachar

told me about further operational activities performed by him.

Following are activities I learned and performed during my 6th week of internship.

 Opening Of Account Procedure (All Types of Account).

 Signature Scanning / Verification.

 Account Maintenance.

 Third Party Mandate.

32
  Transfer of Account to another Branch.

 Closure of Account.

 Cheque Books

 Ordering Cheque Books.

 Delivery Cheque Books.

 Issuance of Counter Cheque.

 Cheque / cash deposit & withdrawal.

During this week I learned about the account opening procedure of all types of accounts, like as

 First Gharana Bachat Account (PLS Saving Account).

 First Current Account.

 First Term Deposits.

 First Micro Cash Maximizer.

Then after about features of Cheque book.

 How to order the cheque book?

 What are the requirements of ordering the cheque book?

 How to fill the cheque book request form?

 How to issue the counter cheque?

 How to deliver the cheque book?

On 11th of August during that week we celebrated the “independence Day of Pakistan”.

For sake of this we decorated the whole branch with the balloons, flags & stickers. I enjoyed a lot with

whole staff by cutting the cake, taking the photos along with great Mr. Zameer Hussain (Area

Manager), Ghulamullah Bhutto (BM), with all the other staff of branch, and in last by having the

Biryani in lunch.

33
5.1.7. 7th Week (Operations Department Practical Work).

During the 7th week of my training program under the guidance of Miss. Noor-Ul-Ain I have learnt

the following operations.

 Cash Deposit vouchers Posting.

 Wrong Posted Cash Reverse Process.

 Generating DD for Branch SO’s.

 Loan Closing.

 Generating Daily Reports.

 Disbursement listing.

 Falling due listing.

 Recovery Listing.

 Transaction journal History.

 Income & Expenditure Statement.

 Statement of Affair

 Statement of accounts.

 Deceased accounts.

 Dormant accounts.

On 1st day this week I have learnt and posted the cash vouchers of SO’ Shikarpur & SO’ Madeji and

then after about the wrong posted cash reverse process. During this week further I have learnt about,

 How to generate the DD?

 What is the importance of DD.?

 How to close the Loan?

 How to generate daily reports?

34
After that my trainer told about the Deceased & Dormant Account. She said In case of death or

bankruptcy, the bank will stop operation of the account immediately, after receipt of official notice or

as and when it becomes aware of the death or bankruptcy of the account holder from any other reliable

source, then applicant account converted into the deceased account.

And the accounts, which have not shown any activity in the past two years shall be marked "Dormant”

in the Flex cube.

5.1.8. 8th Week (Operations Department Practical Work).

In the last week of my internship program I have learnt important operations of the operation
department. Following list outlined the operations I have learnt during this week.

 Clearing.
 Clearing through NIFT.

 Intercity Clearing.

 Usage of Memo in Clearing.

 Outward / Inward Bills for Collection.

 Inland Remittances.

 Banker's Cheque.

 Mail Transfer.

 Cheque Verification.

 Currency (Notes) Verification Points.

 Quick Cash Counting Tips.

 Cash Daily Transaction Book Maintenance.

 Till and Vault Closing.

Clearing is the process through which participant banks in specific cities settle their financial claims

by lodging instruments drawn on each Clearing House Member banks. These instruments may include
cheques, demand drafts, pay orders / bankers' cheques, travelers; cheques, dividend warrants etc.

35
Intercity clearing facility should also be provided to customers in the cities, where NIFT is offering

such services. Outward clearing / collection cheques should be checked along with deposit slips while

receiving and signing on endorsement by BOM & BM to ensure that payees name on cheque is similar

to the title of account mentioned on deposit slip ( counterfoil & bank copy).

Last 3 days of my internship I transferred to the cash department under the supervision of Miss. Tarana

(Taller). During these days I have learnt,

 How to verify the cheque signature?

 How to verify the originality of cash notes.

 How to calculate the cash quickly and verify them.

My Eight weeks journey came to end on 6th September, I have submitted this internship report to

Branch Manager Mr. Ghulamullah Bhutto.

36
5.2. Challenges during Internship.

Following are the challenges that I faced during my internship.

Practical vs. Bookish knowledge.

Studies teach students theoretical aspects of practical field that is why students face difficulties in the

real situation in adjusting in the practical environment of the organization. So being a student I

encountered different sorts of problems that was challenging for me. I did not find much application

of my knowledge in the bank.

Lack of Banking Knowledge.

Although we have had a course of money and banking in an immediate prior semester to my internship,

still I found it of very minor help in the bank. If we were given a comprehensive and practical know

how in the course, it would have been an implementation of that knowledge in the real organization

instead of learning everything from the scratch.

Adjusting With the Employees.

In an organization I came across many people who were opposite to my personality and often found

them offensive and uncomfortable because of their attitude but I had to work and co-ordinate with

them which were very challenging for me.

Responding To Work Load.

As it was my first experience in the work environment, it took me some time to settle in the bank

setting. Learning new work especially in the beginning while at the same time responding to the

seniors who assigned me the tasks to be completed in short time; was a great challenge for me. Even

under such stress and strain marinating a positive attitude towards everyone was a line of challenge

for me. But with the passage of time being student of psychology I have fully command in these

challenges.

37
5.3. Skills Used During Internship.

The following are the skills that I got a chance to practice in the practical environment.

Interpersonal Skills.

This is most common and one of the most important skills during my internship period. This skill

helps a person to interact with others in much better and pleasant manner. It is an art to present one’s

views, thoughts, and ideas before its listeners. During my internship period it helped me to build good

rapport with the other employees who guided me in the best possible manner. My interaction and

dealings with the customers helped me to broaden my social network.

Communication Skills.

Communication means exchange of messages between people for the purpose of achieving common

meanings. It is an art to make information flow smoother. Today it is very necessary to communicate

well especially in organizational sector and especially for those who are seeking information. My

communication skills gave me self-confidence while interacting with everyone else.

Conceptual Skills.

I used my conceptual skills to gain an insight into the working of the bank: how the work is done?

What are the problems? Their relative contribution to the economy as a whole.

Stress Management Skills.

As this internship was my first experience in a practical environment so I faced a lot of mental strain

in terms of adapting to the new work environment, practical learning, cope with the challenges faced

etc. using my stress management skills I was able to list priorities and work accordingly.

38
5.4. Skills Gained During the Internship Period.

I have gained and observe a lot from my internship. This helps me a lot to observe being a student of

Psychology. The following skills I gained during my internship session;

Time Management Skills.

During my internship period I have learnt punctuality and the significance of time in an organization.

I have realized that time management is an important element of work. My practical learning has

taught me to prioritize and organize my work according to schedule that enabled me to complete my

tasks in the allotted time.

Human Skills.

I learnt the human skills in BOP in true manner. Human skills associated with an employee’s ability

to work well with others both as a member of a group as well as individual leader who gets things

done through others.

Self-Control.

Our ability to exercise control over our own behavior by setting standards and providing consequences

for our own actions refers to self-control. As an internee this skill is really important because an

internee does not have much of authority.

Co-Ordination.

Co-ordination means the smooth flow of work that must be carried on consistently and systematically

without any breakage. In a corporate environment like banking there is need for integration making

co-ordination an essential environment.

39
5.5. Critical Analysis.

By critically analyzing the branch, there is biasness in providing jobs to the employees because
qualification is not given priority but experience matters within the branch.

Some of the following things that I critically analyzed during my internship program.

Poor Filing System Record & Communication system:

During my internship in the bank, I observed that the filing system of the bank is not modern and thus,
it has a lot of potential for development and can be optimized and upgraded by using databases and
computerized system.

There is smooth upward and downward communication between branch and head office, if there in
any conflict regarding to the performance of employees, they do communicate through telephone and
if there is any change in policy or in case of sending any notification or using official documents,
communication is done by email, because evidence is required from the branch in terms of email to
change the official documents which is required by the internal and external audit to avoid from
objections.

Hiring system & .Morale of staff:

The hiring system of employees is two ways process; firstly, the employee is interviewed by the branch
manager and then his/ her CV is transferred to the head office and he is again interviewed and give
test to the Human Resource Manager of FMFB and after fulfilling the whole requirements of policies
given by the Head Office, the employee is hired and he is given three days training in which he is
learnt how to perform his duties and overall view of the organization’s norms and values.

There is a good morale in staff of the whole branch, the staff deal with one another in a good manner
and there is no concept of leg pulling among all the staff of the branch. They all behave with me in a
good manner during the period of my internship and there is just like a family environment in the
branch.

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 Chapter-6 Learning Outcomes.

6.1. SWOT Analysis.

SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a business venture.

External Factors.

Strengths Weaknesses

 Micro financing.
 New in industry.
 First bank on concept of micro financing
 Less exposure.
in Pakistan.
 Less no of branches in urban areas.
 Branches and sub units in remote areas.
 Not efficient marketing.
 Easy term and conditions of
 Biasness in hiring related to religion.
disbursements.
 Good Organization culture.

SWOT
Analysis
Opportunities Threats

 Technology Advancement  High rate of employee dissatisfaction

 ATM introduction  Political environment
 Enhance product range  Insufficient pay of employees
 Increase services offered  Stiff competition because of new micro
 Urban areas can be served finance banks.
 Economic condition

Internal Factors

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6.2. Recommendation & Suggestion.

Marketing:
Brochures, handouts, pamphlets and other printed reports must be provided to customers, which
should provide all the information necessary to attract and retain customers and to satisfy the
customer’s need for more Personal contacts with the customers can help in providing information to
customers.
All the customers must be provided a chance to get the desired information by personal contact with
the Bank staff.

Customer Relationship:
Complaint and suggestion box should be maintained at the door of the Bank where the customer scan
point out drawbacks in the customer’s services and put forward their suggestions on his improvement
of the services quality of the Bank.

Financial Methodology:
Banks need to acquire an appropriate financial methodology to service the micro- enterprise sector –
financial innovations that permit a cost-effective analysis of creditworthiness, the monitoring of a large
number of relatively poor clients, and the adoption of effective collateral substitutes.

Cost-effectiveness:
The First Micro Finance lending program is costly because of the small size of their loans and because
banks cannot operate them with their traditional mechanisms and overhead structures, so I recommend
that bank adopt cost effective strategy.

Micro-deposits:
The First Micro Finance Bank relatively little about deposit mobilization methodologies that reach the
low income and micro-enterprise client.

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I recommend following activity for deposit mobilization:
 Open Liquid passbook savings accounts and low minimum balances.
 Depositories conveniently located.
 Real, positive interest rates on deposits.
 Incentive for saving such as lotteries.

Diversification.

The First Micro Finance Bank should diversify its portfolio into housing, health, education, transport
and security products.

Capital Market

The First Microfinance Bank is still in earlier stage of its development, and the financial sustainability
is also not satisfactory. In such situation, I recommend that bank raise funds at economical cost either
through debt or equity instruments of capital markets.

Job Training:

Although the bank is providing on job training to the fresh employees but bank should organizes
seminars and other behavioral classes to its employees to increase the effectiveness of the organization.

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6.3 Conclusion:
During my internship in First Micro Finance Bank, I came to know that how practically the work is
done in formal as well as informal environment & I have realized that the First Microfinance Bank of
Pakistan is a deliberate structured organization and it is serving its customers all over Pakistan through
its wide spread network of branches. It is offering many services and products at easy markup rates to
the valued customers. The customers are valued and are served at the first priority. The employees of
the Bank are very much cooperative and work whole heartedly thus working hard for the success of
the Bank .FMFB is now growing rapidly and achieving its targets on time. The management plays a
vital role in conducting all sorts of operations. The organization is working efficiently and effectively.

I have assist in working of risk rating sheets and observation follow ups and go through the audit
reports of different branches, by them I learn what is the reason of carelessness of employees and what
are the mistakes and frauds can be done in financial reports and banking sectors.Overall it was a nice
experience and FMFB as an organization is certainly at a higher position in micro finance banking
sector. Their financial highlight shows us its growth in very less time and future prospects. With all
the strengths FMFB own there are certain threats as well which FMFB should address to avoid any
downfall and keep its position. Office grade employees in FMFB are not well paid and dissatisfied
with their jobs but one thing I felt was very good environment for women and no gender
discrimination.

Work experience is an important factor in any organization and promotions, bonuses and increments
are work based. But in FMFB I found a bit of discrimination with low grade employees and ones who
don’t possess a relevant degree are neglected irrespective of the plenty of work experience. There are
also some conflicts of hiring because of their Ismaili religion, well it is only my observation.
They are committed to maintain long term customer relationship. There employees are fully
committed to their work. The bank is doing its best to provide maximum satisfaction to the customers.
They are striving to provide the maximum facilities to the poor and deprived population of the
Pakistan.

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 Chapter-7 Attachments with the Report.
7.1. Reference & Sources.
The data of report was collected from various resources and sources, in the form of primary and
secondary data. The Secondary data was collected form following sources.

 FMFB Official Home Page. (www.fmfb.com.pk.ltd)

 FMFB Annual Report 2016.
 FMFB Operation Manual.
 FMFB Credit Manual.
 FMFB Loan Polices 2017.
 FMFB Services & Products Manual.
And the primary data was collected from the practical work training of internship program and observe
through the activities performed by staff members of Bank. And also collected by taken the interview
from the following person.

 Mr. Zameer Hussain Ujjan. (Area Manager)

 Mr. Ghulamullah Bhutto. (Branch Manager)
 Mr. Akram Hussain Mangi. (Credit Officer)
 Mr. Ali Raza (Shikarpur & Madeji So’s Team Leader)

7.2. Annexes;
 Account Opening Form.

 Loan Size & Approval Matrix.

 Credit Appraisal Guidelines.

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