Internship Report

Bank Of Punjab
Main Branch

SUBMITTED BY: Rani Bakhtawer MBA 4th Semester DURATION: 25-AUG-2012 to 21-SEP- 2012 INSTITUTE: HAILEY COLLEGE OF BANKING & FINANCE, UNIVERSITY OF PUNJAB

Acknowledgement:
I am very thankful to Almighty Allah the most beneficent, the most mercy full who has given the strength to complete this task. I am also thankful to branch manager and operational manager respectively of the bank of Punjab 7, Egerton road. Without whose guidance and support it would not have been possible for me to accomplish this assignment.

Executive Summary:
I selected The Bank of Punjab main branch for my internship, as it has a large network in Pakistan especially in Punjab and its serving the entire country. The bank provides a 24 hours banking convenience with the large ATM network in country. During my Six week internship at BOP main branch, I tried to learn the procedure of corporate banking; therefore I spent more time working in Account Department, Clearing Department, Remittance Department, Online Banking and cash Department and Credit department.

o o o o

Account Opening department Clearing Department Remittance Department Credit department

2 weeks 1 week and 3 days 1 week 1 week

During My work, I tried to observe the flow of information, different cases or documents.I tried to learn the procedure of and practices through discussion and asking question with the staff.

History & Nature of BOP:

The Bank of Punjab was established in 1989 and was given the status of scheduled bank in 1994.
The Bank of Punjab is working as a scheduled commercial bank with a network of almost 272 branches at all over major locations in the Country. The Bank provides all types of banking services such as Deposits in Local Currency and client foreign currency, r emittances, and advances to business, trade, industry and agriculture. The Bank of Punjab has indeed entered a new era of science to the nation under experience and professional hands of its management. The Bank of Punjab plays a vital role in the national economy through mobilization of hit her to untapped local resources, promoting savings and providing funds for investments. The bank offers attractive rates of profit on all deposits, opening of foreign currency accounts and handling of foreign exchange business.

Vision, Mission and values Statement:

Vision, mission, goals and values are key milestones for any organization.

Overall Vision:
The board of directors has approved the following vision, mission and values of the bank: To be a customer focused bank with service excellence.

Mission Statement:
To exceed the expectations of our stakeholders by leveraging our relationship with the government of Punjab and delivering a complete range of professional solutions with a focus on program driven products and service in the agriculture and middle tire markets through a motivated team

GOALS:
To achieve this objective the bank aims to: Ensure that its performance in all facts of its operations more than matches that of its competitors. Maintains a comprehensive range of domestic and international activities. Maximize contributions from its key m a c h i n e s b r a n d s representation and capital. sources of personal

Be innovative progressive and the need of its customers with in the frame work of operational and prudent risk taker. Act as a reputable efficient and responsible organization. Pursue personal policies which recognize the aspirations and performance of individual and which are suited to the devise levels of skills

Our Core Values: These are the values we celebrate;

Nationalistic : Concerned about our people and our land

Trusting: We believe in building strong relationships with our customers

Reliable: We believe our customer are number one:

Optimistic: We have a positive outlook for the future

Forward looking: Always expecting the best possible outcome

Professional: We are passionate about giving our customers a world-class service

Caring: Have genuine concern for the well-being and success of customers and colleagues:

Organizational Structure: Bank of Punjab is mainly divided into two main heads, Divisions and Departments. Under the head of division department several further departments are working. These include administration, operation, business development and others etc.

Main Offices:
Head Office and the main branch of BOP is in Gulberg 3, Lahore & Egerton, Lahore Respectively. The Bank has been divided into seven regions Each consisting a number of branches. Rest are the branches working under these regions. Which are almost 270 in all over Pakistan. LAHORE REGION: In Lahore region The Bank of Punjab have 65 branches out of which 11 branches are dealing in foreign exchange FAISALABAD REGION: In Faisalabad region The Bank of Punjab have 38 branches, out of which 4 branches are dealing in foreign exchange. GUJRANWALA REGION: In Gujranwala Region, there are 45 branches. In this region 5 branches are providing foreign exchange banking facility. RAWALPINDI REGION: In Rawalpindi region BOP have 41 branches with 4 branches dealing in foreign exchange.

MULTAN REGION: In Multan region Bop have 60 branches, out of which 7 branches are providing the foreign exchange services facility. KARACHI REGION: There are only four branches in this region. All these branches are dealing in foreign exchange branches.

Learning in Departments: ACCOUNT OPENING DEPARTMENT:

Bank and customer relationship starts with the opening of account so it is very sensitive department. I start my internship with account opening department and spend ten days under the supervision of the account opening officer. Here I learnt lot of things which are as follow How to fill the account opening form of the individual/joint account or a company Documents which are necessary for the different customers to open an account like for individual CNIC card is enough for sole proprietor NTN number or introduction of any BOP staff person whichever is available is compulsory. Different types of stamps for different forms like signature verified stamp, signature admitted stamp, original CNIC seen stamp in case of the account of illiterate person Mark of identification stamp, signature affix in my presence and verified stamp. Verisys from NADRA to cobfirm the person identity NAB and office of foreign asset control list(OFAC) Signature specimen card(SS card) How to close the account. Check filling Deposit slip filling

 REMITTENCE DEPARTMENT:

After the account opening department next department was the remittance department. I spend a week in the remittance department. Remittance department transfer the funds from one bank to another bank of from one place to another place. Bank of Punjab transfers the money through Demand Draft. Pay order. the Bank of Punjab provides the following facilities in the remittance department Demand draft Pay order Online banking With the modernization in bank TT and MT are closed now .people prefers the Online Facility and if online facility is improved DD and Pay orders will also me rare.

o DEMAND DRAFT:
An order to pay the money to the payee who is residing out side the city, Demand draft can be for a customer who may or may not have the account in the bank but the other persons account must be maintained with the bank for which the payer demanded the demand draft. If the Demand draft request is against the Cash the Bank of Punjab charge its fees. There are no fees of demand draft for the person who is the account holder of the Bank branch.

o PAY ORDER:
Pay order is the order money but this payment is to be maid within the city. In other worts it can be said that the payee and the payer should be in one city. In pay order payment can be made in cash. Clearing and transfer.

 CLEARING DEPARTMENT:
I worked in clearing department for one week and 2 days. I learnt there about different kinds of clearing. I was told there the main objective of the clearing. i was told in this department about the different types of clearing in which THE bank of Punjab deals and about there stamping. The bank of Punjab Deals in the following types of clearing: Normal/ Local clearing Same day Clearing Intercity clearing Outward bill of collection(OBC)

The Bank Of Punjab charge fee against the Same day clearing and against the cheques which are dishonored. During the work in clearing department I also learn the different types of stamps for clearing

o Stamps for Normal Clearing

Crossing stamp at the face of cheque. Clearing stamp of the next working day at the face of the cheque. Discharge stamp at the back of the cheque with officer signature.

o Stamps For Same Day Clearing

Crossing stamp at the face of cheque. Clearing stamp of the next working day at the face of the cheque. Discharge stamp at the back of the cheque with officer signature Same Day Clearing Stamp at the face of the cheque.

o Stamps for Intercity Clearing

Crossing stamp at the face of cheque. Clearing stamp of the next working day at the face of the cheque. Discharge stamp at the back of the cheque with officer signature
8

Intercity Clearing Stamp at the face of the cheque

o Stamps for outward bills of collection

Crossing stamp at the face of cheque. Clearing stamp of the next working day at the face of the cheque. Discharge stamp at the back of the cheque with officer signature

TERM DEPOSIT AND RECEIPT

During my internship I also avail the chance to study the different term deposit schemes of the bank of Punjab main branch Lahore. I spend three days hare and learn the procedure of fixing the money. Customer can fix the money either in cheque of cash form A form is filled and signed by the customer along with SS card. A certificate is given to the customer normally Pay order against the cheque or cash which ever is presented for fixing the money. If the customer want to withdraw the money before the time period specified he has to fill the form and sign it After completing the formality amount is credited in the customer account along with the profit.

PRODUCT LINES: Deposit Product(s): Current Account:

The Accounts shall be opened upon submission of duly filled-in Banks 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 of account as deemed necessary. The Bank has the right to refuse to open an Account without assigning any reason.
9

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.

The Accounts may be opened singly in one name or jointly in two or more names. Deposit may be accepted from minors provided the account is opened and operated through a guardian. The Account thus opened will continue to be operated upon by the guardian even if the minor attains the age of majority.

All monies/instruments to be deposited in an account should be accompanied by a pay-in-slip showing the title and number of the account. Withdrawals will not be allowed against post dated (payable on any future date) and stale (06 months after issuance date) Cheques and against un-cleared funds.

Basic Banking Account:

The minimum initial deposit will be Rs.1000. 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 BBAs remaining "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.

10

PLS Account:
The Accounts shall be opened upon submission of duly filled-in Banks 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 of account as deemed necessary 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. The Accounts may be opened singly in one name or jointly in two or more names.

PLS-Saving Profit plus Account:

Individuals, corporations, organizations and various provincial / federal government departments can open accounts under the scheme. This is an operating/cheque 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. Profit payable on half yearly basis.

11

Consumer Financing Schemes: Existing schemes:

BOP House Loan Scheme. BOP Car Loan Scheme. BOP Quick cash scheme. BOP Smart Cash Personal Loan. BOP Aasaish Loan Scheme. BOP Motorcycle Leasing Scheme.

BOP House Loan Scheme:

The government of Pakistan has desired that bank should launch housing schemes for all segments of society particularly low& middle classes. State bank of Pakistan has also amended its policy on housing finance to facilitate banks in developing and marketing their housing finance products.

Purpose: BOP house loan term finance facility for purchase of house/ flat or construction of house on self owned plot or for renovation/ home improvement.

Target Market: Salaried Individuals (SI) Self Employed Professionals (SEP) Self Employed Businessmen (SEB

12

BOP Car Loan Scheme:

In order to equip our field force with new products of financing for credit expansion and in line with the policy of state bank of Pakistan for consumer financing, our bank is launching car loan scheme. This scheme will also overcome the competition of other bank and will also meet the growing demand of our customers/ general public. Purpose: BOP car loan is a lease facility for purchasing brand new locality manufactured/ assembled car for personal use & light commercial vehicles. The light commercial vehicles are available only for corporate customers. Target markets are; Salaried Individuals (SI) Self Employed Professionals (SEP) Self Employed Businessmen (SEB)

Security:
Car will be registered in the name of Bank as per lease agreement. Comprehensive Insurance Policy (Insurance Certificate/policy will be sent directly to the branch by the Insurance Company). Post Dated Cheques as per the repayment schedule. Three (03) undated cheques of marked up amount (Principal + Mark-up) Any additional guarantee, if required as per the contents of the approval letter.

BOP Quick Cash Scheme: Description:

The state bank of Pakistan has been emphasizing to promote consumer financing in Pakistan. This has importance as it is strongly linked with the growth of industrial and

13

trading activities in the country. SBP has followed bank to provide financing facilities to general public for purchase of locally manufactured customer durable. In order to meet the other objectives the bank has decided to launch a new scheme under the name and style of BOP quick cash.

Purpose:
BOP Quick Cash is personal running finance facility for Salaried Class for meeting their day to day personal needs

BOP Smart Cash Personal Loan Scheme:

Purpose:
BOP Smart Cash Personal Loan Scheme is personal DF facility for meeting personal needs & repayable through monthly installments.

Target Market:
Salaried Individuals (SI) Self Employed Professionals (SEP)

Security:
Departmental Undertaking (waived for Govt. Officers of grade 17 & above and executives of corporate clients) Two Personal Guarantees of employees of equivalent/senior grades to the client or where no equivalent/senior grade officer is available then Personal Guarantee of two officers of grade 17 or above shall be obtained. (Financial commitment of Guarantor should be established through E-CIB report & Salary Slip/Employer Certificate/Bank Statement).

14

BOP Aasaish Loan Scheme:

Further to our four new computers finance scheme launched recently, we are pleased to announce for another new scheme titled BOP Aasaish loan to meet the demand of general public. BOP Aasaish Loan is personal loan facility for banks target market for the purchase of Consumer durable goods for their personal use, repayable on easy installments". Target Market:

Salaried Individuals (SI) Self Employed Professionals (SEP) Self Employed Businessmen (SEB)

Eligibility Criteria: Eligibility Criteria for BOP Employees: Age between 21 and 59 Years or retirement date; whichever is earlier (59 Years at maturity of facility). Minimum Take Home Salary is Rs.7,000/Permanent Employee with Minimum 01 Year of job Experience. Contractual Employees are also eligible but loan should be adjusted before 03months of the expiry of contract. Maintaining Salary Account in any bank. Have valid CNIC.

Security: Post Dated Cheques. Life Insurance of Borrower. Three (03) undated cheques of marked up amount (Principal + Mark-up). Any additional guarantee, if required as per the contents of the approval letter.

15

TYPES OF ACCOUNTS.

1.

Accounts of General Customers

a) Minor Account. b) Illiterate Person Account. c) Joint Account.

2. Accounts of Special Customers

a) b) c) d) e) f) g)

Individual Account. Proprietorship Account. Partnership Account. Limited Company Account. Account of Club Societies and Association. Agents Account. Trust Account.

Minor Account:

Account opening procedure: The natural guardian who signs both Account Opening form and specimen signature Card can open account in the name of minor. Title of Account: The title of account should clearly indicate both the names of minor as well as guardian in the following manners:

16

Special Instructions: The guardian will continue to operate the account even if minor attain the age of majority. Documents: a) Computerized national Identity card of guardian b) From B OF minor c) In case guardian is appointed by the court of law then attested copy of guardianship certificate be obtained and placed on record.

Illiterate Person/Photo Account:

Before opening such account the illiterate person should be informed that he/she cannot issue Cheque in favor of any other person.

Documents:

a) Copy of Computerized National Identity Card b) Two attested photographs to be obtained for
specimen signature Card. c) Thumb impression. Male--------Left Hand Thumb Impression Female-----Right Hand Thumb Impression

pasting on AOF and other on

Joint Account
These are the account of two or more persons who are neither partners nor trustees.

Accounts Opening Procedure: Title of account:Title of account holder should mention the names of all the joint account holders.

17

Special Instruction: At the of opening the account clear and specific instructions should be obtained regarding operation of the account and the balance at the death of one or more joint account holders in the following manners.

The account can be operated by:

Any joint account holders singly or Any two or more joint account holders or Any of two or more survivors jointly or All the joint account holders jointly or All the survivors jointly.

These instructions as far as possible should be obtained in handwriting of the parties concerned, under the signature of all the joint account holders.

Documents: a. Computerized national identity Card of all the joint account holder.

Mode of signature:

a. All joint account holders are required to sign as applicant and the column of special instructions. b. Specimen signature of only those joint account holders are required who are authorized to operate the account.

Individual Account:
When a single man or woman opens an account in his or her own name and has the right to operate, it is called individual A/C.

18

Account Opening Procedure:-

Title of account should mention the name of the person who operates the account.

At the time of opening the account clear and specific instructions should be obtained regarding the nominee of the account holder means after the death of the account holder who will operate the account.

Documents: a) Computerized national Identity Card. b) Proof of income if he /she is a salaried person then he pay slip or salary certificate of that person.

Proprietorship Account
When the owner of the firm operating singly, he can open an account in his firm name.

Title of Account: Title of account must be in the name of the proprietorship concern.

Special Instructions: In case of proprietorship concern, the special instruction should cover the style of the account and the name of the person who will operate the account as sole proprietor .for example, f the account to open is in the name of Islamabad cloth store the person who is the sole proprietor should declare as such

19

Documents:-

a) b) c) d) e)

Computerized National Identity Card (CNIC) of proprietor. Declaration for proprietorship concern Proprietorship stamp Letter of request to op en the account on the letterhead of proprietorship. Third party Mandate, in case any other person has been authorized by the proprietor to operate the account. f) National Tax number (NTN) but it is optional.

Partnership Account:
Partnership is a relationship between persons who have agreed to share profits of a business carried on by all or any of them acting for all.

Account Opening Procedure:

Title of Account: Title of account must be in the firm as declared by the partners.

Operational Instructions: Operations on the account must be allowed strictly in accordance with the instruction given in partnership mandate and declaration (Part III) In terms of section 25 of Partnership Act 1932 according to partnership deed, if given.

Documents:

a) b) c) d) e) f)

Copy of Computerized National Identity Card of all the partners. Copy of registration certificates (if a registered firm) Letter of request to open the account on the letter of head partnership. Partnership Stamp. Partnership Deed. Third Party Mandate, if third party is authorized to operate the account.
20

g) NTN (optional).

Limited Companies Account:

Section 2 of the companies Act1913, define companies as: An association of individuals for the purpose of profit, possessing a common capital contributed by the members constituting it, such capital being commonly divided into shares; of which each possess one or more and which are transferable by the owners.

Title of Account: Title of account should be exactly in the same name and style as mentioned on the memorandum and article of association.

Special Instruction: All the special instructions should be given to the bank in the form of Resolution of Board of Director.

Documents: o Computerized National Identity Card (CNIC) the Director attested by company CEO o Resolution of Board of Director passed under Companys seal to open account. o Memorandum and Article of Association. o Certificate of Incorporation Form 29 (B) (LATEST COPY). Company secretary will certify all these copies. o List of directors and authorized signatories. o Certificate of commencement of business (for Public Limited Companys only).

21

 Agent Account:-

Title of Account: Account must be opened in the name of agent.

Special Instructions: o Manager should ensure compliance of contract between principle and agent. o Agent cannot delegate powers to third party. o Transfer between principle and agent account should be in accordance to agreement. o In case of death /insolvency /insanity of principle agency transaction are automatically terminated. Documents:o Attested photocopy of Computerized National Identity Card (CNIC) of the agent. o Certified copy of power of attorney.

Account of Club Societies And Association:

Account Opening Procedure: Title of account: Account must be opened in the name of organization in the following manner: e.g. Karachi Cricket Association

Operational Instructions:

o All the parties must be in accordance with the clauses of the resolution. In case of death of officer bearer, account should be blocked until new resolution is received. o Copy of bye-laws /regulation Like of members of managing/executive committee.
22

o Copy of certificate of registration(if registered) o Copies of CNIC are of the members of Executive Committee. o List of names of official authorized to sign on behalf of the organization along with the specimen signature under the signature of the secretary of the club/society.

BOP ATM / Debit Card:

BOP Apna Cash Card is an ATM plus Debit Card: 1. The front of the card will have the following matter on it: Card Holders Name International Bin Number (6 Digits - XXXXXX) Card Number (YYYYYYYYYY) (total IMD+CARD num has to be = 16)

2. The back of the card will have: Magnetic Strip Signature Panel Conditions of Usage M-Net and M-Net logo

Service(s): The BOP Debit Card holders will be able to transact at any of the 1000 + Merchants across the country. The following services can be utilized at the Point of Sale (POS) terminals: Purchasing: Your BOP Debit Card can be used in place of cash at all outlets where the M-Net logo is displayed. This is a service which lets you pay directly from your account without using cash. When a payment is made through the debit card, your account is directly debited.
23

Balance Enquiry: The Point of Sale (POS) terminal also lets you view your balance of all the linked accounts to your card. Sites: BOP Debit Card Holders can transact at any of M Net merchant locations country wide. These POS terminals are available at Shopping Malls to Petrol Stations. The list of country-wide merchants is attached as Annexure I. All merchants who display the M-Net logo will accept the BOP Debit Card. Customer Eligibility: The ATM Card will be issued to Savings and Current Account holders who maintain their accounts with the bank and in terms of the account opening documentation are authorized to operate the account singly or jointly. For Joint Accounts, which are operated on the signature of any one of the account holders, ATM / Debit card can be issued. The joint accountholders will be jointly & severally liable for any transactions processed by the use of the cards and the terms and conditions as laid down shall be jointly & severally binding on all account holders. Cards will not be issued on the following accounts: Any non-personal account i.e. Companies, Organizations, Trust Account,

Government account and Collection account etc. Dormant, inoperative, blocked or restricted accounts. Accounts with NIL balance. Term Deposit Accounts. photo for operation (illiterate accounts). ATM/Debit cards can only be issued on LCY.

24

Use of Electronic Media In Decision Making: Electronic data gives exact values and figures which top level management required. Because of electronic data they came across to know those minute things which impacts a lot on final place. Through this they can measure exact profit and loss accounts, assets and liabilities up to a branch level from where they can decide which should be kept and which should not. Through this top level management is able to decide which product should be taken into course for further level or which should stop. Electronic data make management able to take decision at any point of time.

Following software are used in The Bank of Punjab BOP 2001 is used for transactions Symantic antivirus SWIFT software is used for foreign remittances VERISYSES is used for the recognition of the person from NADRA NAB Office of foreign asset control list(OFAC) Kyc for risk evaluation

25

FINANCIAL ANALYSIS BALANCE SHEET of LATEST FIVE YEARS (000)

2011 Cash and balances with treasury banks Balances with other banks Lending to financial institutions Investment Advances Operating fixed assets Deferred tax assets Other assets Total assets Bills payable Borrowings Deposits and other accounts Subordinated loans Liabilities against assets 7,831 13,887 19,907 30,632 40,321 13,886,769 16,049,657 280,997,531 850,569 24,963,566 237,896,700 14,063,694 9,715,522 229,190,273 581,100 11,526,783 208,176,988 11,921,146 5,762,509 216,669,863 875,618 1,404,014 190,858,215 8,388,162 6,109,137 185,909,120 1,219,801 12,278,773 164,072,532 5,789,116 234,990,675 93,7647 17,842,915 191,968,377 92,581,306 127,129,501 3,597,483 56,402,954 120,818,021 3,534,660 57,960,105 121,315,799 3,427,267 22,711,980 131,731,158 3,471,838 73,461,693 133,899,143 3,252,759 7,447,375 7,309,587 1,053,550 633,333 2,450,000 3,607,107 3,276,234 2,185,782 2,178,455 1,927,662 16,698,333 2010 14,069,601 2009 13,043,705 2008 10,685,057 2007 14,210,302

26

Deferred tax liabilities Other liabilities Total liabilities Share Capital Reserves Unappropriated profit Accumulated loss Share deposit money Surplus/(Deficit) on revaluation of assets Total owners equity

2,205,530

6,506,275 270,224,941 5,287,974 1,914,956 -

5,223,045 225,521,803 5,287,974 2,012,492 -

4,700,166 210,493,920 5,287,974 573,779 -

4,564,257 182,165,995 5,287,974 7,427,232 -

2,983,977 215,978,767 4,230,379 7,427,232 3,468,956

(14,067,841) 17,000,000

(14,352,989) 10,000,000

(10,330,839) 10,000,000

(7,658,686) -

637,501

2,947,477

645,029

(1,313,395)

3,885,341

10,772,590

3,668,470

6,175,943

3,743,125

19,011,908

Figure 1- Balance sheet of latest 5 years

Income Statement of The Latest Five Years (000)

2011 Markup/return/interest earned Markup/return/interest expensed Net mark-up/ interest income Provision against non-performing
27

2010 18,220,175

2009

2008

2007 17,539,538

20,685,011

15,641,832 21,073,271 18,801,642

17,752,969 13,939,377

19,022,494 (388,260) (581,467) (3,380,662) (3,164,234) 559,604 9,241,653

16,614,000 3,600,161 1,138,969 1,616,421 18,863,580

loans and advances Provision for diminution in the value of investments Bad debts written off directly Net mark-up/ interest income after provisions NON MARKUP/INTEREST INCOME Fee, commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale and redemption of securities Unrealized gain / (Loss) on revaluation of investments classified as held for trading Other income Total nonmarkup/interest 494,103 1,989,708 473,055 1,883,333 2,218,749 4,182,826 (1,193) 518,553 526,185 547,635 5,436,761 (5,383) 18,020 (124,238) 733,787 330,025 293,303 286,375 160,089 402,779 134,488 247,570 324,328 2,039,535 657,114 920,943 577,630 2,020,896 1,812,870 377,233 724,499 561,688 659,488 (13,563,498) (18,090,998) 2,244,320 (3,901,795) 1,712,392 941,183 366,387 246,869 531,654 2,760,724 24,479

28

income NON MARKUP/INTEREST EXP. Administrative expenses Provision against lending to financial institutions Provision against off balance sheet items Other charges Total nonmarkup/interest expenses Extra ordinary/unusual items PROFIT /(loss)BEFORE TAXATION Taxation current Prior years Deferred PROFIT/ (loss) AFTER TAXATION Accumulated loss/ unappropriated profit Brought Forward 174,774 347,973 (2,157,119) (4,029,277) 78,491 (4,383,406) (14,373,920) (16,832,906) 207,600 1,052,000 (8,033,001) (10,059,505) 522,747 (6,186,396) 4,855,569 (6,186,396) 3,029,171 2,924,734 205 3,711,281 1,605 4,167,934 (244,111) 740,000 794 114,700 37,950 2,293,584 10,101 292 1,121 3,954,066 3,426,329 3,028,377 2,799,933 2,255,342

170,700 (19,921) 250,772 4,454,018

(10,069,005) (14,352,989) (10,330,839) (7,658,686)

3,452,842

3,226,961

29

Transfer to statuary reserve Transfer from surplus on revaluation of fixed assets - net of tax Accumulated loss carried forward Profit available for appropriation Basic Earnings/ (loss) per share Rupees

(69,595)

2,894,000

(1,057,595)

6,770

7,127

7,502

5,572

5,866

(14,067,814) (14,352,989)

(261,834)

2,400,819

7,686,845

0.66

(7.62)

(19.04)

(19.02)

10.53

SWOT Analysis
SWOT stands for strength , weakness ,opportunity ,Threats. Strength and weakness is internal and opportunity and threats are external. So we can say SWOT analysis is the internal as well as the external analysis of the organization. SWOT analysis of the BOP is given as follow:

STRENGTH
BOPs branches are scattered all over the country to provide services to their customers. Unlike the many other bank BOP deals with every customer. Either a salaried person or High profile customer. BOP provides cheque book and ATM within A week which is very efficient as compare to other banks. In the BOP account is opened within the day while some banks take a week for the process. The branchs employees are very polite and deal the customers as thy are their own people.
30

Bop is the punjab government bank so it enjoys some political benefits as well. In the syndicated loan to agriculture Bop share is most of all the other banks. The branch staff is very talented and hardworking

WEAKNESSES
Formalities in the branch are very high. For example to open a account customer has to sign at least 15-20 times on a form which irritates them. The online system of the branch is poor. Some time customer has to wait 2-3 hours to avail the services. Charges in the branch are very high. For example like the other banks BOP does not provide free clearing service, free cheque book And etc The IT facilities in the branch are very poor. Systems are out of age which delays the process. In the branch employees are overburdened. A single person is performing 3-4 duties at a time

OPPORTUNITIES
BOP can extend its customer base by increasing the no. of branches in other cities. Product Development: Introduction of new products and service in other segments and markets (mobile banking, credit cards) International Market: BOP can venture into the international market and extend its network Aggressive Strategy: BOP can use aggressive marketing techniques to increase its market share

31

THREATS
The competitive environment of the bank is very hostile and aggressive Government being the major stock holder of the bank can release itsshare to some other party and stop supporting the bank The economic condition of the country are not stable political instability is also very dangerous for the bank as it is semi government organization. BOP is losing its market share to the completion due to t r a d i t i o n banking practice

Conclusion
The Bank has recovered much faster after a major shock, now it is traveling on t h e road of success with a steady pace. It is cont ributing a lot t o w a r d s t h e i n d u s t r i a l development and mid tier segment of the P a k i s t a n s e c o n o m y . A s i d e f r o m t h e g e n e r a l banking, the development of the agriculture sector of Pakistan is a phenomenal objective which no other financial institution has yet achieved with such success. The Bank of Punjab has always strived to remain in the line of leading banks and has consistently shows steady growth in every aspect of its solutions. The vision and mission of the Bank of Punjab are true image of its existence

32

Recommendations:

BOP top management should have to revise the formalities in order to facilitate the customers. The charge on different services should be revised to compete the market. The IT facilities should be improved. The ATM machine has to be replaced as early as possible In the branch staff workshops should be organised for technical knowledge. The management has to take serious steps to recover the loans. The pressure of work and shortage of time creates negative effects; BPOs management should provide adequate facilities and allocate sufficient staff according to the requirements of each branch.

Bop should launch bank cheque books to attract the customers.

33

34