The Bank of Punjab

THE BANK OF PUNJAB AN

INTERNSHIP REPORT

1
 The Bank of Punjab

An Internship Report

Submitted To:
Principal of
Management
Department
Supervised by:
Mr. Fahad Javed
Submitted By:
Manzar Ali Khan
FA08-MBE-032

Date:

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 The Bank of Punjab

COMSATS INSTITUTE OF INFORMATION AND

TECHNOLOGY Lahore

“All praises to almighty Allah, the most

beneficent and he most merciful”

Countless thanks to Almighty Allah, creator of all of us and all respect to His last Holy
Prophet (peace be upon him) who enabled us to recognize our creators.

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 The Bank of Punjab

“He, who does not thank people, is not thankful to Allah”

ACKNOWLEDGEMENT

I GET UNBOUNDED DELIGHTED TO EXPRESS ALL PRASES

TO Almighty ALLAH, the omnipotent, the Merciful, the
beneficent, Who enable me to understand some facts of
the universe and granted me the ability of making some
material efforts in my field. Although I admit the fact that
my contribution is like dew drop in the vast ocean of
knowledge and pragmatic tasks of this work.
I pay all my praises to the great prophet HAZARAT
MUHAMMAD (PBUH) with whose love my heart is
enlightened and I feel the surging waves of real mirth,
deep down my soul.
Here, I want to acknowledge with thanks the efforts and
guidance of my internship supervisor Mr. Muhammad
Fahad Javaid and the management of the “BANK OF
PUNJAB” who helped me in providing all the possible help
in the preparation of this report.

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 The Bank of Punjab

Executive Summary
Internship is an essential part of MBA Program and “COMSATS Institute of
Information And Technology” provides opportunity to all students to learn about the
practical working of organizations and improve their personal skills. Business
problems are becoming more complex with the passage of time due to the
advancement in the world. “Management” students really get much benefit
through this practical knowledge during studies.
Bank of Punjab is a well reputed bank in the Pakistan. It is playing its role in the field
of agricultural development and industrial development. The bank of the Punjab
Mission is to exceed the expectation of stakeholders by leveraging relationship with
the Govt. of Punjab and delivering a complete range of professional solutions with a
focus on program driven products and services in the agriculture and middle tier
markets through a motivated team.
During my internship at Bank of The Punjab I learned about the working of the
organization special the working of a bank. I learned about how to deposit money,
how to withdraw money, and how bank perform its other service activities i.e.
Clearing, ATM facility, Advances to Business, E-Banking etc. I also learned about
the structure of the bank, the detail of organization structure can be found inside the
report. Every organization or set-ups has its own problem, during my stay in the

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 The Bank of Punjab
bank I have tried to dig out some problems or inefficiencies which may harm for the
business. In the end I have made some recommendations to solve these problems.
I tried my level best to produce a most comprehensive internship report on The Bank
of Punjab by compiling all the practical learning in a systematic way, hence making
the report unique. All information which is provided in the report is based on the
observation, the information provided by the officials, and the information that I
gathered during my stay in the bank. This effort and my interest in internship can
evaluate me in true prospective.

Aims and Purpose of Internship:

➢ Internship provides opportunity to student to see the actual implications of

his/her study in different types of organization. Student sees what he has learned
and what are actual implications of his/her study.
➢ Internship allows the students to apply his/her technical skills in real
environment which he/she has learned in class room.
➢ Internship provides a chance to get basic know how about the working of
organization before entering in the organization as a regular worker.
➢ Internship experiences are an experience, hands-on work experience
opportunities.
➢ Increase in the confidence level and your mental approach become extensive.
➢ Dynamic thinking becomes part of your daily life during internship period and
that reflect changes in your life as well.
➢ Interaction of students with the working environment of organization and
make student to a good observer, communicator, build confidence and face
different sort of challenges but more focused on the learning process.
➢ Creating PR (personal relations) because on the bases of PR there are more
chances of progress no matter which ever field you choose for you career.

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 The Bank of Punjab

Table of Contents

CHAPTER NO. 1
BANKING HISTORY 9
Introduction 10
Historical Overview 11
Vision and Mission Statement 13
Core Values 13 BOP Management 14
Branch Network 16

CHAPTER NO. 2
BOP PRODUCTS AND SERVICES 17
Products 18
Deposit Products 18
Profit And Loss Sharing Products 21
Loans Products 27
Services of Bank of Punjab 31
Commercial Banking 32
Corporate and Investment Banking 32
Utility Bills, Lockers 34

CHAPTER NO.3

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 The Bank of Punjab
SWOT ANALYSIS 35
Strengths 36
Weaknesses 38
Opportunities39
Threats 40

CHAPTER NO.4
FIELD OF ACTIVITES 42
Account Opening 43
Signature card 46
Account closing 47
Cheque leave 48
Clearing 50
Inward clearing 50
Outward clearing 52
Remittance form 54
Pay order 56
Demand draft 58
Online Transfer 59
ATM card 62
CHAPTER NO.5
FINANCIAL ANALYSIS 65
Balance sheet 66
Profit and Loss Account 67
Ratio analysis 68
Branch senior staff 74
CHAPTER NO.6
CONCLUSION, OBSERVATIONS AND RECOMMENDATIONS 75
Observations 76
Conclusion 77
Recommendations 78
Appendix 79

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 The Bank of Punjab

Chapter No.
1

History of
The bank

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 The Bank of Punjab

INTRODUCTION

The Bank:
The Bank of Punjab is engaged in commercial banking and related services. The Bank
provides services, such as deposit in local currency, client deposit in foreign currency,
remittances, and advances to business, trade, industry and agriculture. It has five
segments: trading and sales, which includes fixed income, equity, foreign exchanges,
commodities, credit, funding, own position securities, lending and repose, and
brokerage debt; retail banking, which includes retail lending and deposits, private
lending and deposits, trust and estates investment advice, merchant / commercial and
private labels and retail; commercial banking, which includes project finance, real
estate, export finance, trade finance, lending, guarantees, bills of exchange and
deposits; payment and settlement, which includes payments and collections, funds
transfer, clearing and settlement, and agency service, which includes depository
receipts, securities lending (customers), issuer and paying agents. “THE BANK OF
PUNJAB” in short known as BOP and branch location is Mian Center Raiwind Road
Branch. In banking sector every branch have unique code and whole working is based
on these codes The Bank of Punjab Raiwind road code is 0277.

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 The Bank of Punjab

HISTORICAL OVERVIEW:

The Bank of Punjab (BOP) was established in Pakistan on 15 Nov 1989, under the
Bank of Punjab Act 1989 and was given the status of scheduled bank in 1994. The bank
is listed on Lahore, Karachi & Islamabad Stock Exchange. The majority shares of the
bank are held by the Government of the Punjab.
Recognizing the role of technology in effective/efficient operation of financial sector, the
bank has computerized all its branches which are inter-connected with online real time
system. Bank’s customers are facilitated by shared network of online ATMs in all major
cities of Pakistan.
Bank Enjoys Substantial share in economic growth, especially of agricultural and SME
sectors. Penetration into Agri-economic was made possible through strategic
positioning of branches and introduction of a number of Agri-based financing schemes
allowing the bank to play a vital role in the development of agriculture sector in Pakistan
The Bank of Punjab is working as a scheduled commercial bank with its network of 286
(2010) branches at all major business centers in the country and strength of employees
are 3500. Branches of this bank are increasing all over the country at a gradual speed
which shows that customers are placing confidence and satisfaction in the services of
BOP. In fact, it has made wonderful advancement in a very short time as compared to
other banks in Pakistan.
From the financial point of view, financial position of bank is very strong. Market value of
its shares is showing increasing trend, price earning ratio and other ratios are showing
favorable position of the bank so I decided to choose BOP for my important and
compulsory internship in the end of 4th semester. The bank's major customer is the
government. Other customers are various public sector enterprises from different
segments of the economy including textile, real estate, transport, agriculture, financial
institutions and individual customers. Currently, the bank operates with a network of 286

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 The Bank of Punjab
branches. In this year, bank has undergone significant structural changes in order to
strengthen its capital base and review its advances portfolio as a result it accumulated
lot of capital. Bank of Punjab is amongst a few banks which enjoy better credit rating by
Pakistan Credit Rating Agency (PACRA) like for long-term "AA-" and for short-term
"A1+".

BOP President

Mr. Naeemuddin Khan, newly appointed President, The Bank of Punjab, has experience
of more than 25 years in local and international banking industry with good repute.
Before joining the top slot of the BOP, he was the Chief Executive Officer and Managing
Director of the Pak-Libya Holding Company (Pvt) Limited.

Naeemuddin has also served in the Corporate and Industrial Restructuring Corporation
(CRIC) during the Shaukat Aziz’s government. In 2001, he was seconded by the then
Prime Minister, Shaukat Aziz and the then State Bank of Pakistan governor, Dr Ishrat
Hussain, to Corporate and Industrial Restructuring Corporation as the member,
banking. He developed functional layout of the corporation and successfully handled its
operations. He has also rendered services in the fields of remedial banking and
rehabilitation of sick industrial units.

Naeemuddin started his Banking career from Grindlays Bank in 1978 and worked as a
Branch Manager of Grindlays Bank in Islamabad, Rawalpindi and Lahore. In 1991, he
joined Emirates International Bank as a Chief Manager, Lahore. In 1998, he joined the
United bank Limited as SEVP/Head Special Assets Management Division. He
graduated from the Forman Christian College and completed his education from the
PACE University, New York, and USA. In 2004, he was awarded Muzaffar Memorial
Gold Medal by the SBP governor in recognition of meritorious services to the Banking
Industry in Pakistan.

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 The Bank of Punjab

Vision Statement:

“To be a customer focused bank with service excellence.”

Mission Statement:

“To exceed the expectation of our stakeholders by leveraging our relationship

with the Govt. of Punjab and delivering a complete range of professional
solutions with a focus on program driven products and services in the

agriculture and middle tier markets through a motivated team.”

Core Values:
Customers: As our first priority
Profitability: For the prosperity of our stakeholders that allows us
to constantly invest, improve and succeed.
Corporate social responsibility:To enrich the lives of community where we live.
Recognition & Reward: For the talented and high performing employees.
Excellence: In everything we do.
Integrity: In all our dealings.
Respect: For our customers and for each other.

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 The Bank of Punjab

BOP Management

Mr. Javed Mehmood Chairman

Mr. Naeemuddin Khan President
Mr. Khalid Siddiq Trimizey Dy Chief Executive Officer
Group Head Special Assets Management
Mr. Sajjad Hussain
(SAM)
Mr. Shahid Waqar
Head Retail Banking
Mahmood
General Manager Special Assets
Mr. Shaheen N. Qureshi
Management (SAM)
Mr. Nadeem Amir General Manager Finance
Mr. Sharjeal Masud General Manager Operations
Mr. Mahmood Sadiq Khan General Manager I&PSL (LDD)
Mr. Zalmai Azam Durrani General Manager Broad Base Liability
Mr. S. M. Atif Head Consumer Banking Division (CBD)
Mr. Azhar Hussain
Head IT
Dilawari
Mr. Khawar S.Ansari Head Treasury
Mr. Ijaz ur Rehman
Head of Audit & RAR
Qureshi
Mr. Main Muhammad
Head CAD
Sharif
Mr. Salman Saeed Head Credit Policy
Mr. Moazzam M Maneka Head Agriculture Credit Department
Mr. Amir Hameed Head TPC
Mr. Sajid Arif Nomani Head Establishment
Mr. Irfanuddin Head C&CD
Mr. Naveed Hafeez Shaikh Acting General Manager HR
Mr. Mohammad Nauman Acting Country Risk Manager
Mr. Hafeez ud Din Acting Country Head C&IBG
Mr. Aseer Ahmad Khan Acting Country Commercial Head
Mr. Momin Hyat Advisor Islamic Banking
Mr. Raza Saeed C.M & Secretary to Boad of Director

Board of Director

MR. SAFDAR JAVAID SYED CHAIRMAN

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 The Bank of Punjab

MR. NAEEMUDDIN KHAN PRESIDENT

MR. TARIQ MAHMOOD PASHA DIRECTOR

MR. AZHAR HAMID DIRECTOR

MR. SHAFQAT MAHMOOD DIRECTOR

MR. VIQAR AHMED KHAN DIRECTOR

MR. NAVEED MASUD DIRECTOR

MR. HAROON KHAWAJA DIRECTOR

MR. SHAFQAT ELLAHI DIRECTOR

Audit Committee
MR. HAROON KHAWAJA CHAIRMAN

MR. AZHAR HAMID MEMBER

MR. NAVEED MASUD MEMBER

Branch Networks

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 The Bank of Punjab

Corporate Region
Lahore North Region Lahore South Region
Rawalpindi Region Faisalabad Region
Gujranwala Region Multan Region
Peshawar Region Karachi / Quetta Region

Head Office Main Branch, Lahore

10-B, block E-II, Main 7 Egerton Road Lahore
Boulevard Tel: (042)
Gulberg III,lahore. 9200419,9200187
Tel: (042) 5783700-10 Fax: (042) 9200351

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 The Bank of Punjab

Chapter No
2

BOP
PRODUCTS
& Services

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 The Bank of Punjab

PRODUCTS
1. Deposit products
2. Profit and loss sharing products
3. Loans products

DEPOSIT PRODUCTS
CURRENT ACCOUNT:
 The Accounts shall be opened upon submission of duly filled-in Bank’s
prescribed Account Opening Form properly introduced in the manner
provided and on submitting all such documents as may be revised by the
Bank. The Bank reserves the right to demand such relevant documents even
after opening. The Bank has the right to refuse to open an Account without
assigning any reason.

 The Accounts shall be opened with an initial/minimum deposit as stipulated

by the Bank from time to time unless specifically exempted.

 A distinctive number shall be allotted to every account and this number

should be quoted in all correspondence relating to the account and at the time
of making a deposit or withdrawal. The Bank reserves the right to change the
Account Number or any part of it in order to meet its book
keeping/administration requirement. However, intimation of change in the
account number shall be sent to the account holder.

 Account for the recipient of Zakat or recipient of grants from Bait-ul-Mall,

maybe opened with an initial deposit of Rs.100/- (introduced vide Inst
Cir#97/129 dated 25.11.1997 & Inst Cir 98/53 dated 03.06.1998)

 The Accounts may be opened singly in one name or jointly in two or more
names.

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 The Bank of Punjab
 Withholding Tax at the rate notified by the Government of Pakistan from time
to time will be deducted out of profits payable to the Account Holders.

 ZAKAT is leviable on the assets as described in the Zakat & Ushr Ordinance
1980 (as amended from time to time) on balances which will fall within the
definition of zakatable assets as notified by the Government of Pakistan on
valuation date each year, provided Declaration (original/attested photocopy)
for exemption from compulsory deduction of zakat is filed on the prescribed
proforma (CZ-50) in the prescribed manner one month preceding the
valuation date except in the case of newly opened accounts.

 The branches shall ensure completion of all the formalities required by State
Bank of Pakistan vide Prudential Regulation No.M-1with regard to KNOW
YOUR CUSTOMER.

BASIC BANKING ACCOUNT:

 No profit will be Payable.

 No fee (service charges) for maintaining such accounts will be charged.

 There will be no limit for maintain minimum balance. In the cases, there
balance in BBA's remain "NIL" for a continuous 6 month period, such
accounts will be closed.

 Account holder will be allowed a maximum of 2 deposit transactions and 2

checking withdrawals, free of charge either through cash/through clearing per
month otherwise service charges of a regular banking account shall be
applicable for that month as per Bank's Schedule of Charges.

 Unlimited free of charge ATM withdrawals from Ban's own ATM's will be
allowed. In case of withdrawals from BBA though the ATM Machine of other
Banks, the Charges of these Banks shall be applicable for such transaction.

PROFIT AND LOSS SHARING

PLS ACCOUNT:

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 The Bank of Punjab
 PLS Savings Accounts may also be opened by charitable institutions, for
Provident Funds and other funds of Benevolent nature by Local Bodies,
Autonomous Corporations, Companies, Associations, Societies, Educational
Institutions, Firms etc. and in all other cases where such accounts are required to
be opened under the orders of Competent Court of Law

 Not more than one PLS Savings Account may be opened at a branch in any one
name except in the name of a parent or guardian for more than one child or for
keeping funds of specified nature category by an entity, with the Bank’s prior
approval.

 Profit payable or Loss recoverable on PLS Saving Accounts to be credited or

debited will be determined by the Bank at its sole discretion on the basis of its net
working results at the end of each half-year within the time prescribed by SBP
from the date of the close of the half-yearly books of accounts of the Bank. The
rates of profits may vary from period to period viz January to June/July to
December each year. Calculation of Profit on PLS Saving Accounts will be made
for each calendar month on the lowest credit balance of an account between the
close of the 6th day and the last day of the month. However, profit accrued even
for Re. 1/- after deducting withholding tax will be payable to all Account Holders.
When an account is CLOSED before declaration of profit rates, the accrued profit
will be first credited in the account at the profit rates previously declared by the
Bank. However, no recovery or payment of profit as a result of increase/decrease
in the rate of profit will be affected upon such A/C holders after announcement of
half-yearly profit rates by the Bank.

Deposit Slip

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 The Bank of Punjab

SENIOR CITIZENS SAVING ACCOUNT:

This is a saving bank product available for all senior citizens i.e. persons of 60 years
and above who are eligible to open a saving account as per our Bank’s criteria. The
account can be opened singly or preferably jointly (husband & wife) provided either of
them is of 60 years or above. This product is designed to attract procure
deposit/savings of senior citizens by offering attractive, innovative incentives and higher
rate of profit to senior citizens.

The Main Features are:

 A customer can open only one BOP Senior Citizens Saving Account singly or
jointly regardless of the branch. In case it is found out that more than one
account exists under this category, the Bank reserves the right to recover &
forfeit the profits paid or not to give any profit.

 The account can be opened with a minimum initial deposit of Rs.10,000/-.

However in case average deposit during the month falls below Rs.10,000/-,
account maintaining charges shall be levied as per Bank’s Schedule of Charges.

GHARAYLOO SAVING ACCOUNT:

This is a saving bank product available for all females who are eligible to open a saving
account as per our Bank’s criteria. The account can be opened singly or jointly with
husband. This product is designed to attract procure deposit/savings of ladies
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 The Bank of Punjab
particularly.housewives.of.expatriates.&.students.

The Main Features are:

 A customer can open only one BOP Gharayloo Saving Account singly or jointly
regardless of the branch. In case it is found out that more than one account
exists under this category, the Bank reserves the right to recover & forfeit the
profits paid or not to give any profit.

 Maximum profit @ 7.25 % p.la. Shall be paid on minimum monthly deposit upto
Rs.250,000/- but over Rs.10,000/-. Deposit can exceed Rs.250,000/- but no profit
will be paid on balance over and above Rs.250,000.

 The profit will be calculated on monthly basis based on the minimum monthly
balance maintained by the customer during that particular month.

 The profit will be credited on monthly basis in the respective account.

 Profit once disbursed will not be recovered in case of decrease in rate at the time
of announcement of Half Yearly profit rates. However in case of rise in profit rate
the difference amount will be paid.

 Existing females account holders can also open account under this scheme.

 In case they wish to close their existing PLS or other account, same may be
allowed without deducting account closure charges

 Zakat will be deducted as per law like any other saving/profit bearing account.

 Withholding tax will be deducted from the profit as per law in force.

PLS-SAVING PROFIT PLUS ACCOUNT:

 Individuals, corporations, organizations and various provincial / federal
government departments can open accounts under the scheme.

 This is an operating/checquing account

 The accounts can be opened in individual or joint names.

 The deduction of Zakat and Withholding tax will be applicable as per law of the
land.

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 The Bank of Punjab
 Average balance during a calendar month will be taken to determine the deposit
slabs and applicable profit rate for that month for the purpose of creating
provisons. However, in case the average balance in any month falls below Rs.
1(M) being the minimum slab, the account for that particular month will be treated
as an ordinary Pls-sb account and profit will be calculated on minimum balance
during the month at the normal rate declared for Pls- sb account.

 Profit payable on half yearly basis.

ZIADA MUNAFA SAVING ACCOUNT:

This is a saving bank product available for general public i.e. persons who are eligible to
open a saving account as per our Bank’s criteria. The account can be opened singly or
jointly. This product is designed to attract procure deposit/savings of general public
particularly salaried and small investors.

 A customer can open only one BOP Ziada Munafa Saving Account singly or
jointly regardless of the branch. In case it is found out that more than one
account exists under this category, the Bank reserves the right to recover &
forfeit the profits paid or not to give any profit.

 The account can be opened with a minimum initial deposit of Rs.10,000/-.

However in case average deposit during the month falls below Rs.10,000/-,
account maintaining charges shall be levied as per Bank’s Schedule of Charges.

CORPORATE PREMIER ACCOUNT:

 This account has been introduced f

 or corporate clients.

 This is an operating/checquing account

 Profit on the account will be calculated on daily product basis by determining the
slab on the basis of average balance maintained in the account.

 The deduction of Zakat and Withholding tax will be applicable as per law of the
land

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 The Bank of Punjab

CORPORATE PREMIER TERM ACCOUNT:

 This account has been introduced for corporate clients.

 This is non operating/checquing account

 Minimum amount of investment is Rs.500(M).

 The deduction of Zakat and Withholding tax will be applicable as per law of the
land.

 Profit payable at maturity

MUNAFA HI MUNAFA

 This is a term deposit product. The term is from 1 month to 1 years and the profit
is paid on monthly basis. The minimum amount of deposit is Rs.100,000/-. The
rate of profit is from 8.0 % p.a. to 12 % p.a. depending on the tenure which is
higher than Bank’s normal term deposits as follows:
Term *Expected Minimum Profit payment on
Profit Rates amount of monthly basis (With
p.a. Deposit Rs. Holding Tax to be
deducted)
1 month 7.00 % 100,000/- Rs.583
3 months 8.75 % 100,000/- Rs.729
6 months 9.25 % 100,000/- Rs.771
1 year 10.00 % 100,000/- Rs.833

* This product is governed under PLS rule i.e. the rates mentioned are expected
and the Bank reserves the right to revise the rates and terms & conditions of
profit under Profit & Loss sharing system.

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 The Bank of Punjab

 BOP TIJARAT ACCOUNT (LCY)

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 The Bank of Punjab

INCENTIVE Average Average Average

Balance Balance from Balance from
from Rs.500,001 Rs.1,000,001 &
Rs.100,000 To Over
To Rs.1,000,000/
Rs.500,000/- -
Free Inter- Free – Free – Free – unlimited
city/within-city unlimited unlimited transaction
deposit/withdrawal transaction transaction
Free Issuance of One Card One Card One Card
ATM/Debit Card
Free Renewal of Allowed Allowed Allowed
ATM/Debit Card
Free Issuance of One 50 Two 50 leaves Free – No limit
Cheque Book leaves per per month
month
Free Issuance of
Duplicate A/c 1 per month 2 per month Free – No limit
Statement
Free Rental One Small One Medium
Charges for NONE subject to subject to
Lockers availability availability
(small/medium)
No key deposit for No Key No Key No Key deposit
lockers deposit deposit equivalent of
equivalent of equivalent of medium locker
small locker small locker
Commission free Free – Free – Free – unlimited
issuance of unlimited unlimited transaction
PO/DD/MT/TT transaction transaction
Free/reduction in Free - on Free - on Free - on equal
Outward Bills for equal to last equal to twice to three times of
Collection charges month’s of last month last month’s
average average average balance
balance and balance and and above this
above this above this amount reduced
amount amount commission @
reduced reduced 0.25%
commission commission @
@ 0.32% 0.28%
No Cheque return
charges for 3 per month 5 per month Free – No limit
cheques
presented in
clearing as
collecting banker.
Free Call Deposit No charges, if No charges, if No charges, if in
26
 The Bank of Punjab
Receipt in own name in own name own name or in
or in favour of or in favour of favour of deptt
deptt on a/c deptt on a/c on a/c holders or
holders behalf holders or on on other
for other contractor’s
earnest/bid contractor’s behalf for
money by behalf for earnest/bid
debiting own earnest/bid money by
account money by debiting own
debiting own account
account
CONSUMER
FINANCING
Reduction in
processing upto 10% upto 25% upto 50%
charges from 10
to 50 %
Reduction in rate
of markup upto 50 upto 25 bps upto 40 bps upto 50 bps
bps

 The rent free locker facility will be allowed on availability of locker and after
maintaining average balance for six months.
 The reduction in rate of markup on Consumer finance will be on loan amount
equal to twice of last months average balance.

Loans Products
1. COMMERCIAL FIANCE
2. CONSUNER FINANCING
3. CONSUMER BANKING
4. AGRICULTURE CREDIT
5. NON FUND BASED PRODUCT

COMMERCIAL FIANCE
• Running finance
• Cash finance
• Demand finance
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 The Bank of Punjab

CONSUNER FINANCING
• Quick cash
• Car loan
• House loan
• Aaisaish loan
• Smart cash personal loan

• Furniture and crockery loan

CONSUMER BANKING
• Clean Pakistan- CNG filling station scheme

• Lady entrepreneur financing scheme

28
 The Bank of Punjab

• Auto lease financing scheme

• Car dealer financing scheme

• karobar barhao scheme

• fertilizer dealers financing scheme

• Ali akbar group franchise scheme

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 The Bank of Punjab

• Alas Honda limited- authorized dealers franchise scheme

• Financing scheme for the purchase of shop/office

AGRICULTURE CREDIT
• Second hand tractor lease financing scheme
• Kissan dost aabiari scheme
• Kissan dost mechanization support scheme
• Kissan sost form transport scheme
• Kissan dost eslah-arazi scheme
• Kissan dost live stock development scheme
• Livestock bread improvement
• Kissan dost commercial agro service scheme
• Corporate farming finance scheme
• Commercial lease finance tractor scheme

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 The Bank of Punjab
• Demand finance sheds construction and civil works
• Landless people for purchase buffaloes
• Lease financing facility for milk animals
• Running finance- livestock/poultry and fish farming
• Kissan dost model dairy forms

NON FUND BASED PRODUCT

• Documentary letter of credit
• Standby letter of credit

Services of Bank of Punjab:

The Bank provides all types of banking services such as:

• Deposit in Local Currency

• Client Deposit in Foreign Currency

• Advances to Business

• Trade

• Industry and Agriculture.

• ATM Facility

• On-Line Banking

• E-Banking

• Debit Card

• Consumer Financing

• Agriculture Financing

• Corporate Financing

• Commission free Remittance

• ZARCO Exchange Remittance

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 The Bank of Punjab
• Collection of Utility

• Lockers Facility

• Account Opening Form

Service
s
• Commercial Banking
• Corporate & Investment
• Cash Management Services
• Utility Bills
• Lockers

Commercial Banking:
The Commercial Banking Group has been formed to cater the needs of small & medium
size customers for increasing Bank’s business significantly with clear focus,
repositioning of resources and active marketing to improve Bank’s profitability.
Commercial Banking will deal with customers having sales turnover and aggregate
credit exposure as per benchmarks prescribed in the SBP’s Prudential Regulations.

This Group’s emphasis will be to meet necessary business needs of customers which
are numerous as compared to CIB clients but their individual credit requirements are
relatively much smaller. In view of this peculiar nature of this business segment that
involves a higher turn over a much wider network is needed. The SME will concentrate
on rebuilding its set up which suits to its peculiar needs on all locations.

Corporate & Investment Banking

This group performs its function through its following two units:

1- Corporate Banking

2- Investment Banking

32
 The Bank of Punjab

Corporate Bank:

The Corporate Banking shall Endeavour to market new clients and retain the existing
relationships and build market share through offering superior services, competitive
pricing and wide product range to valued clients including the Multi National
Companies (MNCs). This Unit taking advantage of tremendous growth potentials of
corporate accounts will continue its Endeavour to remain a major contributor.

The human resources of CIB shall be beefed up by inducting adequate number of

professionals and approval process streamlined by installing credit committees of
various tiers at all Regional locations. The benchmark for Corporate Banking clients
would be as per criteria laid down in the SBP’s Prudential Regulations.
Investment Banking:

IBG specializes in providing innovative and unique advice to its clients to assist them
in meeting challenges in an ever-changing market. The Unit shall be equipped with
experienced professionals. IBU will either lead or participate in the major TFCs in
market.
Investment Banking Unit offers full spectrum of services, which include TFCs,
Syndicated Finances, Structured Finances, Leveraged Buyouts, Project Finance,
Quasi-Equity Products, Independent Advice, Equity Placements, IPOs, Equity
Underwriting, Mergers, Corporate Restructuring, Acquisitions and other products.
IBU shall also work on and come up with providing Fund Management Facilities.
Cash Management Service:

Cash Management is a process of collections & payments on behalf of the

Customers using the Bank Network. The objective is to facilitate organizations with
multiple collection points in gathering Cash / Funds and making them available in the
customer operating Account. Similarly it facilitates disbursement of frequent and or

33
 The Bank of Punjab
Bulk payment to multiple locations.
This should be accomplished with minimal supervision by the customer, supported
by an automated system to provide timely and requisite MIS / Reconciliation under
agreed Service Levels.
Utility Bills:

The bank collects all kinds of utility Bills including Electricity, Gas and Telephone
from customer. All Branches of the Bank collect Utility Bills during banking hours
which are paid through cash and cross checks
BOP Locker:

The Bank of Punjab Lockers are available in three different sizes Small, Medium and
Large on an annually fee with one time Security Deposit respectively to the size of
locker. Locker holders need to have an account in the Bank.

Chapter no.
34
 The Bank of Punjab

SWOT
Analysis

What is a SWOT?
SWOT analysis is a process to identify where we are strong and where we are
vulnerable, where we should defend and where we should attack. It tells us our
strengths, our weaknesses, the opportunities which prevail in the market and the
threats which we may face from our competitors and other from other potential

35
 The Bank of Punjab

factors.

This analysis can be performed on a product, on a service, a company or even on an

individual.

SWOT Analysis of Bank Of The Punjab

Here i have applied this very useful technique to identify the strengths, weaknesses,
opportunities and threats of Bank of the Punjab

Strengths:
Strong Financial Position

As we can see in the financial statements of the bank, the financial position of the
organization is very sound and its profitability is in increasing. The Earning per share
has been increased. It is Rs.3.24 per share which was Rs.1.24 in 2007. On the other
hand the government of the Punjab also finances the bank.

Educated Employees

The bank has highly qualified and skilled workforce and it has succeeded to attract
the best banking professionals from across the country due to its growing pace and
sound reputation. Bank of the Punjab conduct a test before hiring and only qualified
candidates are offered to job.

Good Environment

The management of the bank of the Punjab is very much concerned with the
development of and improvement of the working environment. The bank has state of
the art and purpose built branches where all the modern technologies are provided to
get the efficiency of the workforce and the customer satisfaction.

Govt. Support and Encouragement

As the bank of the Punjab is working under Government of the Punjab so it is fully
supporting the bank in financial matters and in other management aspects.

Fastest Growing Financial Institution

Due to its successful business policies and the strong financial position the bank has
36
 The Bank of Punjab

achieved the reputation of fastest growing financial institution in the country. It has
greatly increased the customer’s confidence in the bank.

Two hundred and eighty six Branches

Due to its strong financial position the bank has undergone a huge expansion plan to
compete with the existing bank all over the country and with the passage of time the
branch network is expanding at a very good pace. At this time 286 branches are
operating in all over the country.

Young and Energetic Workforce

The bank of the Punjab has injected young and energetic force with capability of
marketing. The bank has hired business Development Officers (BDO). These BDO’s
are playing there role to attract valuable customers.

Agricultural support:

The bank has injected 100 Million Rupee for agricultural financing. It is helpful for the
bank to introduce itself in agricultural consumers. By this way it has also impact on
overall agricultural growth in the country.

Weaknesses
ATM facility on Few Branches.

The bank of the Punjab provide facility of ATM machine on few branches, due to this
the customers hesitate to open an account with bank of the Punjab, it is need to
install ATM machines on the maximum branches of bank of the Punjab to gain the
confidence of the customers.

Poor Work distribution

in the bank of the Punjab it can be observed that untrained employees are also
working they does not have much know how about the work so the burden on few
employees remain constant and some employees have no or little work to do. These

37
 The Bank of Punjab

employees should be trained to play there role as a effective employees

Over work Load on Employees

It is observed in the branch that as compared to huge business the bank is dealing in,
the no. of employees is lesser and thus there is an increased workload on the
employees. Due to this the efficiency of the employees is reduced.

Lake of Motivation:

The workload is high and therefore the employees, especially the clearing section
have to do late sittings to complete their tasks. On the other hand the employees
work even after working hour, they are not paid for over time.

Opportunities
Rapidly Growing Economy

At present the Pakistan’s Economy is growing on a very fast pace. The rapid growth
of economy has resulted in the increase in the growth rate of all economic sectors
especially in the banking sector which is growing at a fastest speed than ever and in
future the growth is expected to increase even a higher rate.

Increased Interest Rates

The SBP has revised the interest policy and the interest rates have been linked with
the Karachi Inter Bank Offer Rate (KIBOR) rates. Due to which the banks interest rate
has been substantially increased which will greatly increase the banks’ profitability.

Mega Projects Financing

As the increase in overall business activity in the country, the investors are launching
various types of Mega Projects especially in housing and textile the bank has a great
opportunity to finance these projects at very profitable term.

Huge Demand for Consumer Financing

The increase in per capita income and overall economy has resulted into a great
demand for the consumer financing especially for home finance and car financing and
it is said that this trend will increase more in future. The bank can earn a lot by
focusing on its consumer financing sections.

38
 The Bank of Punjab

Growing Trend of Islamic Banking

There is a very good growth trend in the Islamic banking in the country and in the
world as well. Bank of the Punjab has the advantage of having full fledged Islamic
Banking network and the growth in this particular field can be very fruitful for the bank.

Spending Practices of Mass

As the Pakistani’s are known for their extravagant practices, and to fulfill their funds
requirements they don’t hesitate from getting loans from banks. Thus there is a very
good scope for the bank to run successful business in such circumstances.

Threats
Uncertainty of Economy

Although the economy is growing at a good pace, but there are many factors which
results in the uncertain position of the economy. Such as political uncertainty, WTO,
increase in poverty etc. etc. As a result there are permanent threats of future risks
and losses for the bank.

High Rate of Inflation

The inflation rate of the country has gone above the 10%. This can result into an
unfavorable situation for the bank. And especially when the ownership of the bank is
UAE based, the net spread for them can substantially decrease.

Trend of Mergers

There is a trend of mergers among the banks to become prominent in the market and
to get the maximum market share. This trend can result into the union of some
leading banks which can give tough time to the bank and it will become difficult for the
bank to compete with them.

Privatization of Banks

Due to its privatization policy, the govt. is privatizing the state owned banks. The
change in management may result in the increase in the efficiency and productivity of
the banks. Thus it can become a threat for the bank.

39
 The Bank of Punjab

Risk of Defaults
As discussed earlier that there is a trend of launching mega projects in the country.
And every one is involved in this trend without taking any measure for the
successfulness of these projects. This can result into the failure of this project which
can make it difficult for the banks to recover their funds from these defaulters.

Chapter no.
4
40
 The Bank of Punjab

FIELDS OF
Activities

Account Opening
This form is used to open account in the bank and for every customer who want to open
account in bank will mandatory fill this form.

Rationale of Account Opening:

Account opening with heavy amount is the one of the major objectives of the bank
because when customer open account in the bank than deposit belongs to that branch
and business is done on these bases.
While filling the account form a customer must keep eye on the following points.
Branch Name

41
 The Bank of Punjab
In this rationale customer write the branch name of the Bop (where it is situated)
Branch Code:
The bank of Punjab Raiwind road branch code is 277. Every branch has its own code
for contracting with other branches. In this rationale customer write the branch code of
that branch where he wants to open account.
On the left hand side of the form are that contains three attributes which are account
number, SBS code and date must be filled by the officer who open the account.
Type of Account
In this rationale, customer writes the type of account that he want to open in the bank
whether he is opening current account, saving account, Basic Banking Account or
foreign currency account because these all accounts have their own rules and
regulations.
• Current Deposit Account:
➢ Balance required to open this account is Rs 10,000/-
➢ This account is usually open by those customers who want to make
transaction on daily bases.
➢ Maintaining of account required minimum Rs 10,000/ balance must keep
in account.
➢ In case if the balance in account is less then 10000/ then bank will charge
Rs 75/- per month.
➢ The businessman prefers current account.
• PLS (Profit and Loss Account):
➢ Balance required to open this account is Rs 10,000/-
➢ This account is usually open by those customers who earn salary and
transaction performed infrequently.
➢ Maintaining of account required minimum Rs 10,000/ balance must keep
in account.
➢ In case if the balance in account is less then 10000/ then bank will charge
Rs 75/- per month.
➢ Customer gets profit @ 1.75% per annum.
• BBA basic banking account:
➢ Balance required to open this account is Rs 1,000/-

42
 The Bank of Punjab
➢ No fee for maintaining the BBA account.
➢ If the BBA account is nil for six month then branch can close this account.
➢ Customer get profit @ 2.75% per annum
• Super saving Account:
➢ This account is particular for those customers who want to save money for
as longer period of time.
➢ Customer get profit @ 8.75% per annum
Currency of Account
In this rationale customer write with what type of currency he will deal because there are
also specific rules for foreign currency e.g. zakat is exempted on foreign currency
accounts.
Title of Account
In this rationale the name of the customer is written in (capital letters) that will deal with
the bank. The title of the bank may be individual, partnership, or joint company.
Contact
In this all the information of the customer is mention like; mailing Address, Alternate
address, phone no., mobile no. fax no. and E-mail address. This is very important
rationale because in specific circumstances Bank has to contact with the account
holder.
Category of Account
In this rationale customer write the category of account whether he want to open
individual, joint, proprietorship, Public ltd, or Private ltd company account. These all
types of accounts have different requirement for opening account in the Bank of Punjab.

Occupation:
Must tick your occupation.
Zakat:
Not applicable in case if you are non-Muslim, foreign nation.
Operational Instructions:
In this A/c holder write the name of person who will operate the account that may be
Manger, personal secretary or any other relative of the account holder.
Introducer:
43
 The Bank of Punjab
In this, the name of the introducer of that customer is mention. This is very important
because if new customer committed in a fraud then BOP may ask from the introducer of
that account holder.
Applicant:
In this the name of applicant is mention that may be account holder self or any other
manager or agent of account holder.
Know Information Next (KIN):
This is very important rationale; in this customer write the name and other contact
information of any relative or other person. If the account holder does not contact till
continuously three years then BOP contact that person whose name is mention in KIN.
Additional Information
In this A/C holder mention if he has any account in other BOP Branch or any other bank
branch. This shows the strength of the customer that many its business is expanded.
Account opening checklist
This is for the bank use only. In this bank check and tick on all the information that were
required for opening a bank account. This helps the managers or officer who opens the
account for not missing any information or attached document.

General rules and Regulations

In this all the rules and regulations for opening an account in Bop are mention. A/C
holder read and signs at bottom of every page of rules and regulations. This is very
important because if customer committed into fraud then Bop may suit or take action in
the light of those rules and regulations
Most important points or Rules that BOP fellows:
➢ Officer must view customer original CNIC and attached photo copy of NICI.
➢ Introducer
➢ NICI copy of next to kin.
SECUNET SIGNATURE CARD

44
 The Bank of Punjab
This card is necessary to be filled by the account holder. On this card the account
holder makes his signature. He can take cash from his account only if the signature on
cheque matched with the signature provided on this card.
SOECUNEB SUGBATYRE CARD

Account Closing
One Application Form is available that help the customer to close his/her account.

Rationales
Whenever customer wants to close the account and customer feel that no need of that
account the customer close the account.
➢ Only bank responsibility is to collect the issued chequebook form customer.
➢ Secondly only filling of application is required.

Flow Chat of Account Closing:

Cheque book
45
return by the
customer
 The Bank of Punjab

Submit application
form

Officer closed the

Account and no
charges take by BOP

Payment of all balance

Cheque Cash By theincustomer:
the account by the
bank
When the customer wants to take to debit amount form his/her account then

customer have to use the cheque.

Cheque leave

The Bank of Punjab cheque No: 35210007

(Established under the Bank of Pakistan Act 1989)

Raiwind Road Branch Lahore Date:_________

Pay________________________________________________________
__
ORBEARER
46
 The Bank of Punjab

Rupees_____________________________________________________
__

____________________________________________________________
_

PLS A/C No 0000040008 KAWAJA MUHAMMAD TARIQ

------------------------------------------------------------------------------------------------------------
Don’t writ below this line

634715 ? 11 0830277:  0005930003” !

Rationale
Cheque No:
Every cheque has unique number. If the cheque book is of 25 pages then each leave
have series of number.
Stamp of Branch:
This stamp is important because this identifies that cheque of that branch. For example
Raiwind road branch Lahore identifies that the account of that customer is in that
branch.
PLS or CD, A/C No, Sign and Title of Account:
Account number and title of account is mention in the end. Where the title is
KAWAJA MUHAMMAD TARIQ and the account holder have to sign just above title of
account.
Date:
Date is very important in case of post dated and due dated (after 6 month) cheque will
not present.
Pays:
➢ Self Open cheque any person can cash the cheque.

➢ Name Only that person can cash the cheque whose name is
mention

47
 The Bank of Punjab

➢ Cash Cash is like self

Cross Cheque:
In case of double line or “Payees Account Only” then the process is through transfer
entry or clearing.
Rupees and ORBEARER:
In rupees we write amount in words where in box under ORBEARER amount in
numbers is mention and its very important that both things must match.
If the BEARER is cut:
In case of cutting of bearer then no cash payment from the cash counter. whole process
is LBC,OBC Or clearing is apply which ever it pertain.
➢ In case of same branch cheque than transfer is done.
Computerized number:
634715 ?11 0830277: 0005930003” ! This
computerized number is used by NIFT where this whole number has segregation:
➢ 634715 Cheque #
➢ 0830 Bank Code
➢ 277 Branch Code
➢ 0005930003 Account number in 10 digits.

NOTE:
➢ In case of cutting then sign of account holder is required near cutting area.
➢ If any cutting made on (pays account only and double line) then sign required
near cutting and cheque will consider an open cheque.
➢ Post and due dated cheques are not presentable.
➢ In case of return of cheque, bank charge as per schedule from the customer.
This is the income of bank.

Clearing
There are two type of clearing which are as follows:

• Inward clearing
48
 The Bank of Punjab

• Outward clearing

Inward clearing:
In this type of clearing supposed that customer of BOP give payment to party from
cheque and this party have account in other bank may be MCB, UBL, Soneri bank,
national bank e.t.c. When the customer deposit the cheque of BOP in his/her bank
along with the deposit form then this process is know as inward clearing because this
become the responsibility of the receiver’s bank to collect the amount and credit in the
bank account of the receiver. This is called clearing.

Procedure of Inward Clearing:

In this type of clearing NIFT (National instituted of facilities) are involved. Major task of
this institute is to help in the clearing of cheques and issuances of cheque book to
customer on demand of bank or branch.

Before clearing was done by the State Bank of Pakistan (SBP) or National Bank of
Pakistan (NBP).
NIFT involve twice when clearing is performed.

When the BOP cheque of branch is received the following entry is follow

Customer Account Dr
Head office Cr

Than BOP branch is the originating branch and send the schedule to head office.
Where head office is the responding branch and passes the following entry
Head office Dr
Head Cr
If the cheque return to drawer due to any reason following slip is attached with the
cheque before returning it to the drawer.

49
 The Bank of Punjab

Out Word Clearing

When an account holder having some receivables and the other person give payment in
Cheque rather than cash and Cheque is not of the same bank the account holder
comes and gives Cheque of other bank in that branch where he has an account.
That bank make payment to the account holder and at the evening that branch send
Cheque to the concerned bank and collect that amount which branch paid to its account
holder on the Cheque of that bank.

Flow Chart of Out Ward Clearing

50
 The Bank of Punjab

A/C holder of At evening bank Their own branch

other bank send that CHQ instrument
gives cheque to NIFT Date of instrument
to the A/C Date of clearing
holder of BOP Over writing
NIFT send BOP Amount in figures
CHQ next and words
The A/C morning to that
holder of branch
BOP whose
Cheque is.
present cheque
in Bop
Other Bank Dr. the
A/C of his customer
and Cr. A/C of
NIFT

Bank keeps
CHQ and Other Bank
receives CHQ NIFT transfer
makes amount to the
transaction and checks the
following things drawee bank

Remittance Form

51
 The Bank of Punjab

Remittance form deal in the following matters

➢ Online Transfer (OT)

➢ Call Deposit
➢ Pay Order (PO)
➢ Demand Draft (DD)
➢ Mail Transfer
➢ Telegraphic transfer/swift
Procedure:For all of the above mention remittances Bank of Punjab have one
structure. In order to get this facility customer have to fill this form and must give
details about Beneficiary and Benefactor
Rationale
➢ Beneficiary Informant:

52
 The Bank of Punjab
Beneficiary is the person who is the receiver and all information must be fill by the
applicant or the Benefactor and that includes information such as name of
beneficiary (Receiver), Account No, Amount, Account Title, C.I.N.C No., Beneficiary’s
bank, branch code, address and City.
➢ Benefactor’s Detail:
The sender of the remittance is called the benefactor he has to fill these requirements
name, Copy of C.N.I.C No, Address, City, Contact number.
 Date
This rationale printed on every type of forms and instruments that provides information
about the transaction day.
 Account Number
After opening account in the bank, bank issue an account number to the customer.
Names may be same but A/C # will never same
 Customer branch name
The name of the branch is very important. From this head other people can understand
where from the instrument came
 Branch code
Branch code is also very important. This code allocated by the bank management that
shows in which branch this instrument and customers come. More than one branch can
be in one city and at the same name of place but the branch code will distinguish
between the branches.
 Amount (in words & figures)
This head is also very important. It shows that how much amount is demanded of the
instrument. Amount should written in words and figures both because in figures can
arise mistake. So, when amount mentioned in words that mistake can be solve.
 Telephone number of customer
Contact number of customer is very in this modern period. In case of emergency you
can call your customer and problem can be solve very quickly.
When application is completed then signs by customer and officer. Then payment from
cash counter by the benefactor’s (including commission charges). Next step is the
preparation of instrument (dd, Payment order, call deposit).again sign required by the
benefactor on that printed instrument and this can be given to the party or the
beneficiary .The officer prints a pay order, containing the name and branch of Drawer’s
53
 The Bank of Punjab
bank and the Drawee’s bank along with their codes. This application remittance form
remains with the bank (branch) and treated in the voucher in general and amount will
be credit. When the issued instrument received by bank may be form clearing then this
is the property of bank and this attached with the supplementary sheets amount will be
on debit because this liability of bank finishes.

Important Rationale of Remittance:

➢ Demand Draft, pay order, BOP online the customer requires any of the
instruments because he has to make payment to party and in this case bank
is involved and gives guarantee against this instrument that cash is available.
➢ Party satisfaction is also involved because in case of cheque chances that
might be balance not available in benefactor account and cheque can be
dishonor but not in case of CDR, and Pay order and DD.

Payment Order
In case of same city pay order is made for local payment purpose to party.
It’s a Government or Bank instrument it cannot be dishonor (means that the bank take
the payment from customer and make the payment order in the favor of party).
Whenever bank receives the payment order must have to pay to party.

Bank charge
Charges
Payment order
Issuance of order Rs 50 for account holder
Rs 200 for non account holder
Cancellation of payment order Rs 100 for account holder
Rs 200 for non account holder
Issuance of duplicate Rs 100 for account holder
Rs 200 for non account holder

• And there are no charges for the issuance of pay order to the Government. The
amount can be paid through cash or cheque.
• Payment order that is printed by the officer is of yellow color.
Payment Order

54
 The Bank of Punjab

The Bank of Punjab Payment Order No: 2010/00275

Raiwind Road Branch Issued No: 18/08/2010

Pay: Punjab Public Service Commission Rs=500/-

Rupees: Eighty four thousand nine hundred thirty two only
PKR: *************500/-

From the Bank Of Punjab

____________________ ___________________
Authorized Signature Authorized Signature

When Payment order received from clearing

Stamps used by sender Bank
1) NBP clearing
2) Pay Account Credited (at Back)
Stamp used issuer of Pay order:
1) Transfer stamp
2) Sign of two officer are required (after posting and authentication)

Demand Draft
Demand Draft is used where the payment has to be made out of city the process of
Demand Draft is similar to the Pay Order process.
When ever customer want demand draft then must fill the remittance from must provide
all the information about the beneficiary (Receiver), Account No, Amount, Account Title,
C.I.N.C No., Beneficiary’s bank, branch code, address and City. It’s not necessary that
the receiver is the account holder of BOP you just have to mention the name of

55
 The Bank of Punjab
receiver. On the other hand Demand Draft, payment order and Call deposit can also
issued to the non-account holder applicant.
Note: Any one can have this facility whether customer is account holder or
not.
Procedure
Customer fills the form for demand draft, payment of DD on the cash counter and
cashier will issue customer copy form, present this form in front of officer in order to
acquire the DD first Officer post and second office authenticate the demand draft and
makes entry in the computer. Officers Prints the DD (demand draft) and DD is ready
and issued to customer

When the DD issued then branch not the following entry and head office is involved
in DD and online transfer.

Branch Dr
General ledger Cr

When branch receives the DD the following entry is noted

General ledger Dr
Customer Account/customer Cr

Online Transfer
When the customer wants to transfer the money to the other branch of Bank of
Punjab, within city or out of city then online transfer is preferable because its
requires less time.

Procedure

➢ After filling the form and deposal of money the bank officer get connected to the
online status and enter the branch code of the other branch.
56
 The Bank of Punjab
➢ Then the account number of the receiver is entered. All information about the
account holder is queried on the screen then the entry is made.
➢ First officer post the entry and write transition number.
➢ Then the other officer authenticates the entry then the amount is credited in the
account of the receiver. This process is called online transfer.
Charges

Transaction Type Charges

Upto Rs. 10,000/-
Rs. 10,001 to Rs. 100,000/-
Rs. 100,001 to Rs. 500,000/-
Rs. 500,001 to Rs. 1,000,000/-
Over Rs.1,000,000/-
0.15% - Min. Rs 25
0.10% - Min. Rs. 50
0.06% - Min. Rs. 200
0.04% - Min. Rs. 300
0.04% - Min. Rs. 500

In case If Online Credit Not Possible

Credit Advice:
➢ When ever customer wants to credit amount at the spot then online is use.
➢ In case if the customer wants only online credit and due to some problem
with the online sever then the branch Fax credit advice in order to
perform this urgent task and the amount will be credit directly to customer
account at the same time.
➢ Credit advice delivered to the belong branch the very next day credit in the
account at the spot.
Branch which makes this credit advice is now as originating branch and when other
branch received this credit advice then responds this credit advice
Important Note:
• In the remittance form only these three options that are mention above use more
frequently use and mail transfer and telegraphic transfer are not used now a
days.
• CDR and Pay order are local payments

Brach deposit until paid

57
 The Bank of Punjab
• In DD payment is done out side city not from the branch who issue demand draft.
• Head office is involves in case of DD and Online transfer and work as a
middleman. Main task of head office is to take money form one branch and
transfer to other branch of BOP.
CDR
CDR stands for call deposit receipt; main purpose of CDR is that when every
customer wants to do some contract or project with Government or any other agency
then it required CDR for payment by the bank. Normally the security or token money
of the project is paid through CDR e.g 10% of the total amount of the project. This
CDR is like security or token money and when project finished then discharged by
the owner, government, or institute “whose name is mention on this CDR”.
Stamp and sign on CDR:
• Sign by two officers one who post and other who authenticate.
• At back of CDR After checking voucher and verified sign date e.t.c.
• Pays account credited “this stamp knows as endorsement “which mean that the
amount has been credit.
• Crossing stamp “pays account only” when discharge by the owner of CDR
then CDR become open by the name of Town Nazim Iqbal Town Lahore name
mention on the form attached on next page.
•
The Bank of Punjab Main Center
1KM Raiwand Road Lahore
11 AUGUST 2010
TRANSFER
This stamp means that the amount is transfer form one account to another account

FORM (CDR)

Date 08/07/2007

No:00420448
CALL DEPOSIT RECEIPT

The Bank of Punjab Transferable

Raiwand Road Lahore
58
 The Bank of Punjab
Rs 5000/- CRD NO: 0000004358
ISSUE NO: 21/07/07
The Bank Of Punjab Main Center 1 KM Raiwind Road Lahore

Received from: Town Nazim Iqbal Town Lahore

No A/C OF Muhammad Javed Sindhu

The sum of Rs: Five thousand only

Rs *****,5000.00

As a deposit repayable at call

For the Bank of Punjab

____________________ ___________________
Authorized signature Authorized signature

When payment is required this receipt must be returned to the bank duty discharged by the depositor
under the words received payments.
NOTE: The Bank reserves the right to refund the amount to the purchaser in the absence of payees
discharge
________________________________________________________________________
Do not write below this line

Vouchers:

Voucher used to keep the record of all the work performed by branch through out the
day and organizes by the officer at the end of day.

ATM Debit Card

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 The Bank of Punjab

ATM stand for automatic teller machine. This is one of the product of Bank of Punjab
in order to provide convenient to customer after bank timing and he/she can withdraw
amount form account by using this ATM Debit Card

Procedure of ATM:
• When customer want ATM Debit card he/she must account holder of Bank Of
Punjab.
• Fill the application form ATM card
• BOP takes ATM charges deducted
• Information sends to IT department
• After process by IT then card send to BOP Branch, which required it
• Issue card to customer

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 The Bank of Punjab
• Activate the card by calling on universal number

Flow Chat of ATM Card

Fill the application With in 10 Days card
form ATM card send by IT dep. to BOP
Branch
For activation must fill
date of birth and
mother name

ATM charges
deducted Rs 250 Issue card to customer

Process byCharges
IT For ATM Debit Card: Activate the card by
calling on universal
1 Issuance of ATM Rs 250 number
per card (except
for staff)
2 Renewal charges Rs 250 per card (except
for staff)
3 Cash withdrawals “self customer + ATM” Rs1 0 per transaction
(except for staff)
4 Cash withdrawals “self customer + other ATM” Rs 30 per transaction
(except for staff)
5 Cash withdrawals “other customer + self ATM” Rs 15 per transaction
(except for staff)
6 Balance query Rs 10 per transaction
(except for staff)
7 Mini statement Rs 10 per page(except for
staff)
8 80 column statement Rs 15 per page(except for
staff)

Rationale:

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 The Bank of Punjab
• Less time required as compare cash withdraw from cheque.
• Cash is available at your disposal 24 hour.
• No need to rush to bank for withdraw.

Bank security policy related to ATM:

• Issuance of card after one week.
• Then PIN code come to branch from IT department of BOP.
Above two items take 10 days to complete.
• Application must fill in case if customer lost the ATM card.
• Manager send covering letter to IT department.
• For the re-issuance of ATM Debit Card Rs 250 is charge

Chapter no.5
FINANCIAL
ANALYSIS
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 The Bank of Punjab

FINANCIAL ANALYSIS
Financial analysis, though varying according to the particular interests of the analyst,
always involves the use of various financial statement primarily the balance sheet and
income statement. The balance sheet summarizes the assets, liabilities, and owner’s
equity of a business at a point in time, and the income statement summarizes revenues
and expenses of the over a particular period of time. A conceptual framework for
financial analysis provides the analyst with an interlocking means for structuring.

The Bank of Punjab

Balance Sheet as on December 31,2008
Assets 2008 2007
(Rs.000) (Rs.000)
Cash and balance with Banks 79,155,081 70,944,010
Balances with other Banks 30,001,482 29,150,948
Lending to financial Institutions 18,749,309 15,939,501
Investments 71,759,449 72,609,081
Advances 170,319,096 140,318,362

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 The Bank of Punjab
Other Assets 36,952,148 35,944,790
Operating fixed Assets 7,199,835 6,729,046
Deferred Tax Assets 952,590 Nil
Total Assets 415,088,990 371,635,738

Liabilities
Bills Payable 2,245,349 2,152,050
Borrowing from financial Institution 11,424,963 10,298,970
Deposits and other accounts 349,617,068 316,493,342
Liabilities against Assets 46,092 _____
Other Liabilities 34,185,081 25,274,874
Deferred tax Liabilities _____ 433,585
______1____
__________
Total Liabilities 397,578,553 354,652,821
Net Assets 17,510,437 16,982,917

Represented By
Share Capital 3,730,384 1,463,880
Reserves 7,476,063 9,728,799
Unappropriated profit 752,226 184,848
Total 11,958,673 11,377,527
Surplus on Revaluation of Assets 5,551,764 5,605,390
Total 17,510,437 16,982,917

The Bank of Punjab

Profit & loss Account
For the year ended December 31st, 2008

Particulars 2008 2007

(Rs.000) (Rs.000)
Net markup/Interest income 10,272,710 7,141,959
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 The Bank of Punjab
Non markup/Interest income 4,501,568 4,030,248
Total Income 14,774,278 11,172,207
Operating Expenses
Administrative expenses 8,709,895 8,008,620
Other provisions 332,912 (516,463)
Loss of joint venture 6,456 Nil
Other charges 8,790 17,788
Total opr expenses 9,058,053 7,509,945
Amortization of deferred cost 2,700,596 2,629,862
Total Expenses 11,758,649 10,139,807
Profit before taxes 3,015,629 1,032,400
Net Taxes Payable 1,867,100 571,173
Profit after taxes 1,148,529 461,227
Unappr:profit/loss 184,848 (230,256)
Profit available for appropriation 1,333,377 230,971
Appropriation:
Statutory reserves 114,853 46,123
Cash dividend 466,298 Nil
Total 581,151 46,123
Unapproprated profit 752,226 184,848
Earning per share 3.08 1.24

Ratios Analysis

There is almost an infuriate number of ratios which can be used particularly by the
management to construct financial mode to determine the impact of increase or
decrease in the cost of inputs .The financial ratios which have a universal application
almost all types of an organization are the follows.

1. Liquidity Ratios.
2. Management Ratios.

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 The Bank of Punjab
3. Profitability Ratios.
4. Market value Ratios.

2008 2007
(Rs.000) (Rs.000)
1. Current Assets. 237570059 224588330
2. Current Liabilities 47961485 38159479
3. Owners Equity 11958673 11377527
4. Total Assets 415088990 371635738
5. Advances 170319096 140318362
6. Profit Before taxes 3015629 1032400
7. Profit after taxes 1148529 461227
8. Paid up capital 3730384 1463880
9. No of equity shares 373038.4 146388
10. Outsider funds 361102031 326792312
11. Total income 14774278 11172207
12. Total deposits 349617068 316493342
13. Total Liabilities 397578553 354652821

1.The Current Ratio

Formula: (Current assets / Current Liabilities)

2008
(Rs.237570059000/47961485000)=1:4.95
2007
(Rs.224588330000/38159479000)=1:5.89

Interpretation:

This ratio is showing a decreasing trend as it is 1:4.95 in 2008 and 1:5.89 in 2007 and
according to the recommendation of State Bank of Pakistan a ratio of 2:1 is considered
good. So the current ratio of the Bank is very good.
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 The Bank of Punjab

2.Working Capital :

Formula: (Current Assets -Current Liabilities)

2008
(237570059000-47961485000)=Rs: 189608574000
2007
(224588330000-38159479000)=Rs: 186428851000
Interpretation:
This ratio is showing an increasing trend as it is Rs: 189608574 in 2008 and Rs:
186428851 in 2007. So the working capital of the Bank shows an increasing trend.
3. Return on Share Holders Investment:
Formula: (Net profit after taxes/Share Holder equity *100)
2008
Rs: 1148529000/11958673*100=9.60%
2007
Rs: 461227000/11377527*100=4.05%
Interpretation:
This ratio is showing an increasing trend as it is 9.60% in 2008 and 4.05% in 2007. So
the return on share holders’ investment of the Bank is excellent.
4.Return on Equity Capital:

Formula: (Net profit after taxes /paid up equity capital *100)

2008
Rs 1148529000/ Rs 3730384000 *100=30.79%
2007
Rs 461227000 / Rs 1463880000*100=31.51%

Interpretation:

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 The Bank of Punjab
Return on equity capital ratio shows a decrease in a ratio. In 2007 it was 31.51% while
in 2008 it is 30.79% it shows that the return on equity capital is decreased in 2008.
5. Earning per Share:
Formula: (Net profit after taxes / no of equity shares)
2008
Rs 1148529000/373038000 =Rs.3.08 per share.
2007
Rs 461227000/146388000 =Rs.3.15 per share.
Interpretation:
Earning per share ratio shows a decrease in a ratio. in 2007 it was Rs.3.15 per share
While in 2008 it is 3.08 per share it shows that the earning per share decreased in 2008.
6.Debt Equity Ratio:
Formula: (Outsiders funds / Share Holder equity)

2008
Rs.361102031000/ 11958673000=1:30.20
2007
Rs.326792312/11377527=1:28.72
Interpretation:

Debt to equity ratio is increased in 2008 as compared 2007

7. Equity Ratio:

Formula: (Share Holder Funds/Total Assets *100)

2008
Rs. 11958673000/415088990000*100=2.88%
2007
Rs. 9978164000/371635738000*100=2.68%
Interpretation:
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 The Bank of Punjab

Equity ratio is increased to 0.20% in 2008 as compared to 2007

8.Current Assets to Proposition funds ratio:

Formula: (Current Assets / Share Holder funds)

2008
Rs.237570059000/11958673000=1:20.89
2007
Rs.224588330/11377527=1:19.74
Interpretation:
The ratio is showing an increasing trend in 2008 as compared to 2007
9.Return on Assets:
Formula: (Net profit after taxes / Total Assets * 100)
2008
Rs.1148529000/415088990000*100=0.27%
2007
Rs.461227000/371635738000*100=0.12%
Interpretation:
Return on assets shows a favorable position in 2008.
10.Assets turn over Ratio:

Formula:(Total Income/Total Assets)

2008
Rs.14774278000/415088990000=1:0.0355
2007
Rs.11172207000/371635738000=1:0.030
Interpretation:
The ratio is showing an increasing trend in 2008 as compared to 2007
11. Return on Deposits:
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 The Bank of Punjab

Formula: (Net profit after taxes/Total Deposit)

2008
Rs.1148529000/349617068000=1:0.0032
2007
Rs.461227000/316493342=1:0.0014
Interpretation:
Return on Deposit shows of favorable position in 2008 as compare to 2007
12.Advances to Deposits:
Formula: ( Advances/Total Deposits*100)
2008
Rs. 170319096000/349617068000*100=48.71%
2007
Rs. 140318362000/316493342000*100=44.3%
Interpretation:
Advances to deposits in 2008 48.71% and in 2007 44.3% which shows a increasing
position as compared to 2007
13.Solvencey Ratio:
Formula: (Total Assets / Total Liabilities)
2008
Rs. 415088990000/397578553000=1:1.044
2007
Rs. 371635738000/354652821000=1:1.047

Interpretation:
Solvency Ratio has been decreased to 0.003 in 2008 as compared to 2007 which is
a satisfactory.

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 The Bank of Punjab

Branch senior staff

Names Designation Contact#

Rana Liaqat Ali Khan Manager 0321-8419825

M.Asharaf Gondal Manager Operation 0333-4380799

Maryam Khalid BDO 03324677326

Khalil Ahmed O.G 1 0321-9407301

Sohail Ahmad O.G 3 0300-9211123

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 The Bank of Punjab

CHAPTER
NO. 6

Conclusion,
Observations &
recommendations

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 The Bank of Punjab

My observation during internship:

Following are the things that I observed during my

internship:
➢ Unfortunately here in BOP a man with suit and tie is treated well and a customer
in low quality shilwar qameez is not treated well. This poor customer service in
this branch is a big hurdle for making goodwill. According to my point of view all
employees of this branch need training for improving customer service.
➢ Over employment is also a big dilemma which I feel there because if there is
need of 10 employees, there are 14 working here. This is burden on the
performance of bank.
➢ Distribution of work or assignments is not balanced.
➢ For the safety of the cheques the employees who have duty of authentication
and posting should be sit near to each other. Its also helpful to reduce the
transaction time.
➢ Employees of Bank of Punjab Raiwind road branch work more than their working
hours, this shows the willingness of the workers to perform their duty.
➢ Overall working environment is friendly and comfortable.
➢ Management is very strong and above that it’s a government bank and it has a
financial support of Government of the Punjab.

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 The Bank of Punjab

Conclusion

Finally I conclude that with the cooperation of branch employees I have been able to
learn many new things related to banking sector, I was able to run the day end
successfully at the end of each day, plus arranging all the vouchers, maintaining record
of branch, filling account opening form of customers and handle other tasks as well.
On the other hand I am able to complete this report under the super vision of
my Advisor and make all concepts clear in proper way.
The Bank of Punjab (BOP) is a good Organization in the way that it can be the dream
of every person to join it for his/ her long-term career. Overall working environment is
friendly and comfortable. Management is very strong and above that it’s a government
bank.
Employees of Bank of Punjab Raiwind road branch work more than their working hours,
this shows the willingness of the workers to perform their duty. It also shows their
loyalty, commitment to organization. Due to all these commitment and loyalty of workers
it is considered in best branch of THE BANK OF PUNJAB. Within short period of time
this branch reached in top six branches of Bank of Punjab due to employee’s efforts.

Recommendations
After doing a deep study I am able to recommend so following are my recommendation:
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 The Bank of Punjab

➢ Special loan on lower interest rate should be offered to the employees for the
purchase of house, car, education etc.
➢ Extra staff should be transferred to other branches.
➢ To retain customer, bank should adopt competitive rates for its services.
➢ Employees should be train for better customer service.
➢ Improvement in the salary package of lower staff (messenger, office boy)
➢ There should be some criteria for bonuses on the bases of performance of each
employee reward should be assigned.
➢ ATM machine must be installed so that increases the income of branch.
➢ No entrance in the cash counters because this area is very sensitive and only the
cashier is allowed no other staff member. Cashier’s major responsibility is to
balance the cash at the end of day. When the cash is balance then other task
can proceed such as

○ Backup of after, before, offsite and week end day.

○ Print all the sheets
○ Send data to IT department
○ Keep back up in order to maintain hand copy of data.
➢ Online banking system for the entry of transaction was limitation because every
employee is responsible for his/her assigned task. In case if any wrong entry is
made then this will out the cash balance and create problem at the end of day.
➢ Prohibited area is strong room where vault register and cash is kept only three
employees are allowed who got the keys of strong room i.e. Manager, operation
manager and the casher.
➢ There should be three security personnel in the bank. One at outer side of main
gate, other on inner side and the third near lockers.
➢ There should be quos near cash counter instead of scattered customers asking
for cash.

Appendix
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 The Bank of Punjab

A
ATM

Cash machine: an unattended machine (outside some banks) that dispenses money
when a personal coded card is used.

Agricultural credit

Any of several credit vehicles used to finance agricultural transactions, including loans,
notes, bills of exchange and banker's acceptances. These types of financing are
adapted to the specific financial needs of farmers, which are determined by planting,
harvesting and marketing cycles.
Amortization:

In business, amortization is the distribution of a single lump-sum cash flow into many
smaller cash flow installments, as determined by an amortization schedule. Unlike other
repayment models, each repayment installment consists of both principal and interest.

Account holder

Any and all persons designated and authorized to transact business on behalf of an
account. Each account holder's signature needs to be on file with the bank. The
signature authorizes that person to conduct business on behalf of the account.

Authorized signature

This is the signature of a senior executive such as the operation manager, manger.

Assets:

Anything of material value or usefulness that is owned by a person or company.

B
Branch code

This code allocated by the bank management that shows in which branch this
instrument and customers come. More than one branch can be in one city and at the
same name of place but the branch code will distinguish between the branches.

Bearer

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 The Bank of Punjab
The holder of an instrument.

Brokerage

A brokerage firm, or simply brokerage or broker in context, is a financial institution that

acts as a stock broker. Brokerage firms serve a clientele of investors who trade public
stocks and other securities.

BDO

Business Development Officer.

BBA

Basic banking Account

Bank Reserves

Bank reserves are banks' holdings of deposits in accounts with their central bank (for
instance state bank), plus currency that is physically held in bank vaults (vault cash).
The central banks of some nations set minimum reserve requirements.

Balance in Account
The amount of money in an account, equal to the net of credits and debits at that point
in time for that account. also called balance.

Benchmark

a standard by which something can be measured or judged; "his painting sets the
benchmark of quality.

C
Clearing

In banking and finance, clearing denotes all activities from the time a commitment is
made for a transaction until it is settled. Clearing is necessary because the speed of
trades is much faster than the cycle time for completing the underlying transaction.

Cross Cheque

A cheque that has two lines drawn across it to show that it can only be paid into the
bank account of the person whose name is on it

CD

Stands for current Deposit.

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 The Bank of Punjab

Cheque

A cheque is a piece of paper (usually) that orders a payment of money.

Clearing Bank

A bank designated by the member to receive the member's daily net settlement
advisement. The clearing bank will also conduct funds transfer activities with the net
settlement bank and maintain the member's clearing account. This bank may be the
member itself.

Commission

A fee charged by a broker or agent for his/her service in facilitating a transaction, such
as the buying or selling of securities or real estate.

Commercial Lease Agreement

A lease agreement is a contract between an owner, such as a landlord or car owner,

and an individual for the renting of property.

Consumer Finance:

Retail banking refers to banking in which banking institutions execute transactions

directly with consumers, rather than corporations or other banks. Services offered
include: savings and checking accounts, mortgages, personal loans, debit cards, credit
cards, and so forth.

Credit Advice

A note from a bank informing a customer that an amount of money has been put into
their account.

CDR
Call Deposit Receipt (CDR) is a security deposit for bids etc to the government, semi
government institutions or autonomous bodies, also payable at issuing branch only.

Current Ratio:
The current ratio is a financial ratio that measures whether or not a firm has enough
resources to pay its debts over the next 12 months. It compares a firm's current assets
to its current liabilities. It is expressed as follows:

D
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 The Bank of Punjab
Demand Draft
A method used by individuals to make transfer payments from one bank account to
another. Demand drafts are marketed as a relatively secure method for cashing checks.
The major difference between demand drafts and normal checks is that demand drafts
do not require a signature in order to be cashed.

Deposit Slip:

An itemized slip showing the exact amount of paper money, coin, and checks being
deposited to a particular account.

Drawee

the person (or bank) who is expected to pay a check or draft when it is presented for
payment.

Drawer:

One that draws, especially one that draws an order for the payment of money.

Drawee bank:

Bank named in a letter of credit on whom drafts are to be drawn for payment.

Debit Card:

Card (usually plastic) that enables the holder to withdraw money or to have the cost of
purchases charged directly to the holder's bank account.

DD

Demand Draft.

Documentary Letter of credit

A standard, commercial letter of credit (LC)is a document issued mostly by a financial

institution, used primarily in trade finance, which usually provides an irrevocable
payment.undertaking.

E
E-Banking:

an umbrella term for the process by which a customer may perform banking.
transactions electronically without visiting an actual bank.
Equity:
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 The Bank of Punjab

In accounting and finance, equity is the residual claim or interest of the most junior class
of investors in assets, after all liabilities are paid.

Exchanges:

Reciprocal transfer of equivalent sums of money (especially the currencies of different

countries); "he earns his living from the interchange of currency"

Economy:

The system of production and distribution and consumption.

F
Fixed Economy:

Fixed income refers to any type of investment that yields a regular (or fixed) return.

Finance:

Finance is the science of funds management. The general areas of finance are
business finance, personal finance, and public finance. Finance includes saving money
and often includes lending money.

Foreign Exchange:

The exchange of currency from one country for currency from another country.

Franchise:

An authorization to sell a company's goods or services in a particular place.

Foreign Currency:

Any currency that is in use in a foreign country, but not in one's own.

G
General Ledger:

The ledger that contains all of the financial accounts of a business; contains offsetting
debit and credit accounts (including control accounts).

Good will

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 The Bank of Punjab
An intangible asset valued according to the advantage or reputation a business has
acquired (over and above its tangible assets).

Guardian:

A person who cares for persons or property.

Guarantee

An unconditional commitment that something will happen or that something is true.

H
Hiring

Engage or hire for work.

Holders

A person who temporarily or permanently possesses something.

I
Inward clearing

Inward clearing means the cheques received by the bank from other banks. These -
Inward clearing - cheques are the cheques drawn by the bank/branch customers on
their account in favour of other parties.

Introducer

Someone or something that introduces.

Inflation

a general and progressive increase in prices.

Interest rate

the percentage of a sum of money charged for its use.

Investment:

money that is invested with an expectation of profit.

Income
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 The Bank of Punjab

the financial gain (earned or unearned) accruing over a given period of time.

J
Joint Venture

a venture by a partnership or conglomerate designed to share risk or expertise; "a joint

venture between the film companies to produce TV shows".

K
KIBOR

Karachi Inter Bank Offer Rate (KIBOR).

KIN

Stands for know information next. in this customer write the name and other contact
information of any relative or other person. If the account holder does not contact till
continuously three years then BOP contact that person whose name is mention in KIN.

L
Letter of credit

A standard, commercial letter of credit is a document issued mostly by a financial

institution, used primarily in trade finance, which usually provides an irrevocable
payment undertaking.

Lease

A lease is a contract calling for the lessee (user) to pay the lessor (owner) for use of an
asset. A rental agreement is a lease in which the asset is tangible property.

liquidity ratio

A liquidity ratio measures a company's ability to pay its bills. The denominator of a
liquidity ratio is the company's current liabilities, i.e., obligations that the company must
meet soon, usually within one year.

M
Mergers:

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 The Bank of Punjab

the combination of two or more commercial companies.

middleman

A slang term for an intermediary in a transaction or process chain. A middleman will

facilitate interaction between parties, typically for a commission or fee. Some critics say
that businesses and customers should try to "cut out the middleman" by dealing directly
with each other, avoiding any increased costs or commissions.

Management Ratio

A financial ratio (or accounting ratio) is a relative magnitude of two selected

numerical values taken from an enterprise's financial statements.

Market Value Ratio

Ratios that relate the market price of the firm's common stock to selected financial
statement items.

Management

Management in all business areas and organizational activities are the acts of getting
people together to accomplish desired goals and objectives efficiently and effectively,

Money

Money is anything that is generally accepted as payment for goods and services and
repayment of debts.

MNC’s

Multi national Companies

N
NIFT:

National Institutional Facilitation Technologies (Pvt.) Limited. NIFT is a joint venture

between a consortium of six major banks and private sector. It is responsible for the
establishment and management of automated clearinghouse facilities in Pakistan. NIFT
is proactively involved in the modernization of payment systems in Pakistan.

Net Profit:

net profit is equal to the gross profit minus overheads minus interest payable
plus/minus one off items for a given time period.

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 The Bank of Punjab

O
Outward Clearing
When an account holder having some receivables and the other person give payment in
Cheque rather than cash and Cheque is not of the same bank the account holder
comes and gives Cheque of other bank in that branch where he has an account.
That bank make payment to the account holder and at the evening that branch send
Cheque to the concerned bank and collect that amount which branch paid to its account
holder on the Cheque of that bank.
Owner Equity
Total assets minus total liabilities of an individual or company. For a company, also
called net worth or shareholders' equity or net assets.

Pay Order:

A document which instructs a bank to pay a certain sum to a third party. Such orders
are normally acknowledged by the bank which provides a guarantee that the payment
will be made.

PLS

Profit and loss saving account.

Q
Query:

pose a question

R
Remittnance form.

This is a form used for sending money online.

Running Finance:

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 The Bank of Punjab
Running finance/overdraft is the advance which is given by allowing the customer to
withdraw more money from his current account than he has in it.

Ratios

a ratio expresses the magnitude of quantities relative to each other.

Retail banking

Retail banking refers to banking in which banking institutions execute transactions

directly with consumers, rather than corporations or other banks.

Real Estate:

Property consisting of houses and land.

Risk of Default

The risk that companies or individuals will be unable to pay the contractual interest or
principal on their debt obligations.

S
Stakeholders

A corporate stakeholder is a party that can affect or be affected by the actions of the
business as a whole.

Standby Letter of Credit

Primarily a substitute for a performance bond or payment guaranty, this L/C is used
mainly in the US where banks are legally barred from issuing certain types of
guaranties. It serves as a parallel (collateral) payment source in case the primary
source fails to meet its obligations in part or in full.

SBP

State bank of Pakistan

U
UBL

United bank limited

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 The Bank of Punjab

Inappropriate Profit

The part of an organization's profit that is neither allocated to a specific purpose nor
paid out in * dividends.

V
Voucher

a document that serves as evidence of some expenditure.

Vault Cash

Currency held by banks on their premises.

Value

A numerical quantity measured or assigned or computed

Vulnerable

Capable of being wounded or hurt.

Valuable

Having great material or monetary value especially for use or exchange.

W
Workforce

The force of workers available.

Withholding tax

Withholding tax is the amount withheld by the party making a payment to another
(payee) and paid to the taxation authorities.

WTO

World trade organization.

Z
ZARCO

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 The Bank of Punjab

It is an exchange company.

Zakat:

The fourth pillar of Islam is almsgiving as an act of worship; "the zakat is earmarked for
the poor and disabled.

Reference
www.bop.com.pk
www.sbp.gov.pk
Operations Manager Ashraf Gondal (2010), BOP, Raiwind road Branch Lahore.
BOP employees Book

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