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THE BANK OF PUNJAB INTRODUCTION TO THE BANK OF PUNJAB

The Bank of Punjab is working as a scheduled commercial bank with its network of 254branches at all major business centers in the country. M ! P"#$" has awarded the Bank with the credit rating ""% for &ong term and "'( for !hort term) based on its financial results for the year ended as on *'st +ecember 2,,4. The Bank -ro.ides all ty-es of banking ser.ices such as +e-osit in &ocal #urrency) #lient +e-osit in /oreign #urrency) $emittances) and "d.ances to Business) Trade) 0ndustry and "griculture. The Bank of Punjab has indeed entered a new era of science to the nation under e1-erience and -rofessional hands of its management. The Bank of Punjab -lays a .ital role in the national economy through mobili2ation of hitherto unta--ed local resources) -romoting sa.ings and -ro.iding funds for in.estments. "ttracti.e rates of -rofit on all ty-es of de-osits) o-ening of /oreign #urrency "ccounts and handling of /oreign 31change business such as 0m-orts) 31-orts and $emittances) /inancing) Trade and 0ndustry for working ca-ital re4uirements and money market o-erations are some facilities being -ro.ided by the Bank. The lending -olicy of Bank is not only cautious and constructi.e but also based on -rinci-les of -rudent lending with ma1imum em-hasis on security. "s agriculture is considered as backbone of our economy the Bank of Punjab has introduced 56issan +ost "griculture /inance !cheme5 to small farmers. HISTORY 3stablished in '787) in -ursuance of The Bank of Punjab "ct '787 and was gi.en the status of scheduled bank in '774. 0t is -rinci-ally engaged in commercial banking and related ser.ices with its registered office at 7%3gerton%road &ahore. VISION To be customer focused bank with ser . i ce e1 cellence MISSION STATEMENT To e1 ceed the e1-ec tat ions of our s take holder s by le.eraging our relat ionshi- wi th the 9o.ernment of Punjab and del i .er ing a com-lete range of -rofessional solutions with a focus on -rogrammed dri.en -roducts : ser.ices in the "griculture and Middle Tier Markets through a moti.ated team. OUR VALUES 7

Our Customers as ;ur first -riority Prof i t !i " i t# for the -ros-erity of our stakeholder that allows us to constantly) im-ro.eand succeed Cor$or te so%i " to 3nrich the &i.es of community where res$o&si!i " i t# we o-erate Re%o'&i t io& &( for talented and high -erforming re) r( em-loyees E*%e" "e&%e in e.ery thing we do I&te'r i t# in all our dealing Res$e%t for our customer and each other <ision !tatement To be a customer focused bank with ser.ice e1cellence. Mission !tatement To e1ceed the e1-ectation of our stakeholders by le.eraging our relationshi- with the 9o.ernment of Punjab and deli.ering a com-lete range of -rofessional solutions with a focus on -rogramme dri.en -roducts and ser.ices in the agriculture and middle tier markets through a moti.ated team. #ore <alues ;ur #ustomers Profitability to constantly $ecognition and $eward 31cellence 0ntegrity $es-ect as our first - riority for the -ros-erity of our stakeholders that allows us in.est) im-ro.e and succeed to enrich the li.es of community where we o-erate for the talented and high -erforming em-loyees in e.erything we do in all our dealings for our customers and each other

#or-orate !ocial $es-onsibility

This re-ort has been -re-ared after getting internshi- in B;P branch &a4at $oad !ahiwal. The .irtual uni.ersity has gi.en me task to done it in any organi2ation. !o 0 ha.e selected the bank of the Punjab for getting -ractical knowledge. 0 ha.e di.ided my re-orts in .arious -ortions. The main -ur-ose of this re-ort is to analy2e the =$ acti.ities ado-t by the B;P. The first -ortions of my re-ort consist on =istory of Bo-) its board of +irectors and re.iew of committee. /urther $eaders will able to understand about B;P mission and <ision too. 0n the ne1t coming -ages) $e-ort is gi.ing a whole -icture of B;P business .olume) its -roducts lines) 7

what are the main clients) and what are the whole com-etitors. 0n the * rd -ortion) 0 ha.e written B;P de-artment>s information) its task) all de-artment function. !o it will increase the awareness of the readers regarding to B;P +e-artments acti.ities. The other main and .ital -ortion of my re-ort is my tasks which ha.e been assigned during internshi-. 0n re-ort 0 ha.e mentioned all de-artments 0 worked and got -ractical knowledge. =ere 0 want to mention these entire de-artments which 0 got training '. 2. *. 4. 5. "ccount ;-ening +e-artment $emittance +e-artment #learing +e-artment "ccounts +e-artment #redit +e-artment

The main -ortion of my re-ort regarding to B;P =$M acti.ities will be start after my training -rogram. 0 ha.e written the structure of =$M de-artment) its recruiting -rocess) selecting -rocess) hiring -rocess) training and de.elo-ment) o--ortunities and benefits) labor management relation conduct by the B;P. "fter this -ortion) you will be able to read about #ritical analysis with my true obser.ation. $e-ort will also show you the !?;T analysis) where readers could able to understand B;P strength) weakness) o--ortunity and threats. "fter that 0 ha.e also written conclusion and necessary recommendation in light my finding. Com$ r ti+e A& "#sis B &,i&' I&(ustr# Banking is one of the most sensiti.e businesses all o.er the world. Banks -lay .ery im-ortant role in the economy of a country and Pakistan is no e1em-tion. Banks are custodian to the assets of the general masses. The banking sector -lays a significant role in a contem-orary world of money and economy. 0t influences and facilitates many different but integrated economic acti.ities like resources mobili2ation) -o.erty elimination) -roduction and distribution of -ublic finance. 0t is -urchase of car or building of a home) banks are always there to -ro.ide the ser.ices. 0t is -layground or any educational or healthy societal acti.ities the money of banks nurtures them. 0t is an industrial -roject or agricultural de.elo-ment of the country the s-onsor%shi- of banks is .ery much in.ol.ed. Banks -lay .ery -ositi.e and im-ortant role in the o.erall economic 7

+e.elo-ment of the country. Pakistan has a well%de.elo-ed banking system) which consists of a wide .ariety of institutions ranging from a central bank to commercial banks and to s-eciali2ed agencies to cater for s-ecial re4uirements of s-ecific sectors. The country started without any worthwhile banking network in '747 but witnessed -henomenal growth in the first two decades. By '77,) it had ac4uired a flourishing banking sector. Com$ riso& )it- ot-er ! &,s @ationali2ation of banks in the se.enties was a major u-set to domestic banking industry of the country) which changed the whole com-le1ion of the banking industry. ?ith irrational decision at the to- all the commercial banks were made subser.ient to the -olitical leadershi- and the bureaucracy. !-eciali2ed banking institutions were already working in the -ublic sector. The new accountability -aradigm changed the business ethics in the banking industry) and with this change started the disaster. @ationali2ation of banking industry was accom-anied by .iolent changes in the e1ternal .alue of ru-ee. The commercial banks thus lost their assets management e4uilibrium) initiati.e and growth momentum. They ceased to be a business concern and became big bureaucracies. This was accom-anied by indiscreet loaning under -olitical -ressure. They suffered from three terminal diseasesA non%-erforming loansB higher intermediation cost. The era of nineties was the clima1 of -ri.ati2ation) deregulation and restructuring in the domestic banking industry and financial institutions. The Muslim #ommercial Bank was the first bank to -ri.ati2e. /ollowed by "llied Bank limited) Cnited Bank &imited and now the =abib Bank &imited ha.e been -ri.ati2ed. ;ne thing good for that -articular -eriod was the recruitment of fresh officers in the domestic banking industry through well%organi2ed -olicies of Banking #ouncil. ?ith the decay of Banking #ouncil there was flood of insincere) non-rofessional) incom-etent candidates directly a--ointed recruited in all the domestic banks of the country. Pu!"i% se%tor ! &,s @ational Bank of Pakistan @BP /irst ?omen Bank &imited /?B 7

The Bank of 6hyber 6B The Bank of Punjab B;P The go.ernment of Pakistan -ermitted small -ri.ate sector banks to o-erate) which indulged in doubtful -olicies to -romote business. The -ublic sector banking) which constituted the backbone) thus continued to suffer because of their a--roach) si2e and carried o.er liabilities. Mehran Bank is the -rime e1am-le of that kind of la1 banking in the country) which ultimately merged into @ational bank of Pakistan i.e. last resort of domestic banking industry. Lo% " Pri+ te B &,s "skari #ommercial Bank &imited Bank "l%/alah &imited Bank "l =abib &imited Bolan Bank &imited /aysal Bank &imited Metro-olitan Bank &imited Platinum #ommercial Bank &td Prime #ommercial Bank &imited !audi Pak #ommercial Bank &td P0#0# #ommercial Bank &imited !oneri Bank &imited Cnion Bank &imited Muslim #ommercial Bank &imited "llied Bank of Pakistan Cnion Bank &imited Mashre4 Bank 0n the meanwhile) western banks started entering into the business. They) with the su--ort of ruling elite) concentrated on the big business) lea.ing the routine business to the local banks. This reduced the -rofitability of the local banks. Forei'& B &,s "B@ "mro Bank "l Baraka 0slamic Bank "merican 31-ress The Bank of Tokyo Mitsubishi 7

#0T0 Bank #redit "gricole 0ndo !ue2 +eutsche Bank +oha Bank 3mirates Bank =abib Bank ". 9. Durich =ong 6ong !hangai Banking #or-oration 0/0# Mashre4 Bank PE!# ;man Bank $u-ali Bank !tandard #hartered Bank S$e%i " B &,s Dari Tar4iati Bank &td. 0ndustrial +e.elo-ment Bank of Pakistan Punjab Pro.incial #oo-erati.e Bank &imited

Busi&ess $ro%ess & "#sis SERVICES The Bank of Punjab -ro.ide the following ser.ices to its customers ATM F %i"it# The Bank of Punjab -ro.ides "TM #ard facility to its customer) using M net system) gi.ing to customer 24%hour access to their accounts from any "TMs. S fet# Ti$s .u r( Your C r( To a.oid any damage kee- your ;nline #ash "TM card in a safe -lace. !ign on the back immediately after recei.ing your "TM card. @e.er write your P0@ or share it with anyone including the bank staff. 7

+on>t use your -hone number or other -ersonal information>s like your date of birth etc. as P0@. Fou can make ma1imum of three P0@ entries Gi.e. two entries in case you enter the wrong P0@ first timeH after which your card will be ca-tured by the "TM machine. Be Bri'-t 0n case you need to use an "TM after dark always choose an "TM) which is well lit. 0t is ad.ised to retain the recei-ts until you match them against your account statement. St # A"ert 0t is safe to check your surrounding before using "TM. <isit another "TM if the machine is obstructed or -oorly lit. COMSATS I&stitute of I&form tio& Te%-&o"o'# L -ore *, T-e B &, of Pu&/ ! !hield the screen and key-ad so anyone waiting to use the "TM cannot see your P0@ or transaction. ;n reali2ing anything or someone sus-icious in the area cancel your transaction and lea.e right away. Do&0t F" s- Your C s #ount your cash before lea.ing the "TM. +on>t try to count your money after lea.ing the "TM or at any other insecure -lace. Make sure to kee- your money) recei-t) and card safe in the wallet after making a withdrawal. A%t Imme(i te"# Pick your cash or reclaim your card in 2, seconds otherwise the "TM machine will ca-ture your card. $emo.e your card immediately because the "TM will only dis-ense cash after you remo.e the card. O&"i&e ! &,i&' 7

The Bank of Punjab -ro.ides the ;nline Banking /acility to its account holders at '47 Branches all o.er Pakistan. #ash may be acce-ted at a branch for crediting accounts at another branchB a branch can also -ay the #he4ues by debiting the customer>s account at another branch. There are '47 branches) which are -ro.iding online facility at this time. /ollowing facilities are a.ailable at Bank of Punjab>s ;nline Program for its customersA '. Payments of #he4ues. 2. #ash $ecei-ts. *. Transfer of /unds through #he4ues or #ash between Branches. Co&sumer Fi& &%i&' #onsumer financing refers to any financing allowed to indi.iduals by financial institutions to meet their -ersonal needs. 0t gi.es indi.iduals the ability to generate funds for their -ersonal consum-tion by borrowing against future income. 0t can range from financing a .acation) to buying a car or a house) etc. #onsumer financing de-artment of The Bank of Punjab is offering loans under the following schemes B;P Iuick #ash B;P "asaish &oan B;P #ar &oan B;P =ouse &aon B;P +emand /inance BOP 1UICK CASH The Bank of Punjab IC0#6 #"!= is a running finance facility -ro.ided to salaried indi.iduals through their bank accounts with the Bank for -urchase of consumer items or -ersonal needs. The facility is an alternati.e to consumer financing offered by other banks e1ce-t it is $ / instead of +emand finance) which is more fa.orable to the borrower. ELI.IBILITY CRITERIA Between 25 and 55 years of age Permanent em-loyee of selected organi2ations ha.ing at least * years of e1-erience 7

#om-uteri2ed @ational 0dentity #ard holder @et take home salary is $s.'5,,, % : abo.e as mentioned on salary slisalary certificate Ge1cluding benefitsH. /or 9o.t. 3m-loyees net take home salary is $s.',) ,,, % Lo & mou&t2Limit Minimum amount is $s.5,) ,,, and ma1imum amount is $s. 2,,),,,J Te&ure of Lo & &oan is a.ailable for one year) further renewable subject to satisfactory conduct of account. M r,3u$ R te Most com-etiti.e rate in the market) which will be calculated on daily -roduct basis) which is /or senior Bureaucrats : 31ecuti.e ".erage si1 months 60B;$( K,,BP! of #or-orate #lient with floor rate of '4.5L -.a. /or all other client ".erage si1 month 60B;$ ( K,, BP! ?ith /loor rate of 'KL -.a. Ho) Lo & )i"" !e re$ i( &oan will be re-aid on +emand &um- sum. Pre3S &%tio& Do%ume&t Re4uireme&ts "--lication /orm #o-y of #@0# 2 recent -hotogra-hs &atest !alary !li- !alary certificate on #om-anyMs letterhead &atest #o-y of utility Bills #o-y of ser.ice 0+ card K months " # statement showing salary being credited Post3S &%tio& Do%ume&t Re4uireme&ts Two -ersonal guarantees Ge1-ected incase of B;P em-loyeeH /inancing "greement +.P. @ote &etter of hy-othecation Post +ated #he4ues 7

?hite +ocuments 0. &etter ;f authority 00. "uthori2ation consent 000. &etter of "rrangement 0<. +ebit "uthority <. &etter of 0nstallment T-e B &, of Pu&/ ! bank of Punjab is offering different ty-es of loan facilities) like +emand /inance) #ash /inance) $unning /inance o.er draft etc. /or cor-orate financing bank the financing limit for client on the basis of its asset and bossiness e1-osure. The #or-orate Banking 9rou- manages a high 4uality asset -ortfolio being an acti.e -layer in many sectors including te1tile) sugar) leather) -harmaceutical) fertili2er) -etrochemical) -ower) automoti.e) oil and gas distribution) marketing and refining and fast mo.ing consumer goods industries. 0n the dynamics en.ironments of business bank -ro.ide the short%term and long%term funding needs in the most efficient manner) drawing from the full range of our resources and ca-abilities. To -ro.ide finances bank must look at the affecti.ity and efficiency of the business. The bank of Punjab is offering the .ariety of working ca-ital financing facilities. The bank of Punjab is also -ro.iding the structured finance syndicate to its clients. Tr (e Ser+i%es The foreign e1change de-artment of bank of Punjab is offering the trade ser.ice to clients. The bank of Punjab offers a full range of documentary letter of credit ser.ices as well as discounting and reimbursements to su--ort any or e.ery -art of the customer trade transaction. 31-erienced -ersonnel use their s-eciali2ed e1-ertise to inno.ati.ely structure trade transactions and -rocess daily trade transactions) and ha.e end%to%end res-onsibility for your letters of credit) reimbursements) negotiation of documents) and in4uiries. They also handle e1-ort guarantee transactions and go.ernment donor flow intermediation. The bank of Punjab can -ro.ides trade related facilities) for an a--ro-riate -eriod) in line with working ca-ital cycle of client) to assist client in financing their im-orts e1-orts. There are two ty-es of &#) sight &# and usance &#. 0n sight &# bank -ay the amount when it recei.e the Bill &ading from #orres-ondent bank. 0n usance &#) there is limit of -ayment 7

normally 7, days. OBECTIVES OF INTERNSHIP This internshi- was the -art of my study course) so objecti.e of this internshi- was to learn and gain some -ractical e1-erience. +uring the MB" -rogram) 0 studied many courses about finance) management etc. =ere my aim was to see the a--lication of this bookish knowledge and its -ractical im-lementation. =ow it is useful in -ractical life. 0 saw the differences in bookish knowledge and its a--lication. 0n all jobs related to finance) there is in.ol.ement of banks. !o my aim was to learn how banks deal with cor-orate and general information about rules and regulation of banks. My second objecti.e of this internshi- was to learn about general banking) as customer 0 tried to get e1-erience) how to work with -eo-le of different age) different educational background) and different interests. =ow 0 can be a best team -layer) how to interact with officer and deal with subordinates. . Ne) K&o)"e('e A%4uire( "s this was my first e1-erience in any bank) so all working of bank was new for me. A!out %%ou&t o$e&i&' "ccount o-ening is a sim-le -rocess but it becomes com-licated in case of cor-orate accounts. /or indi.idual or joint account) account o-ens on following sim-le re4uirements. #o-y of national 0+ card ?ritten e.idence of what a--licant is doing "n introducer Ga -erson who already holds account in the bankH for account o-ening. $e4uirement for com-any account are as follows ?ritten re4uest on the letterhead of com-any from an authori2ed -erson to o-en com-any>s account #hief e1ecuti.e) com-any secretary and director along with common seal must sign resolution "ttested #@0# co-ies of all directors /orm 27 attested from registrar of joint stock com-anies Memorandum and articles of association. 7

#ertificate of incor-oration #ertificate of commencement of business only in case of -ublic limited com-any "fter the com-letion of these re4uirements) bank will o-en the account and sends letter of thanks to its customer. ?hen account holder comes with letter of thanks bank will issue che4uebook to account holder. 0f che4uebook is lost the account holder has to gi.e written a--lication for the sto- -ayment of che4ues of that che4uebook and fill a form for issuance of new che4uebook. Remitt &%e Banks offers different ty-es remittance ha.ing different s-ecification. These remittances are demand draft) for out station -ayment. Mail transfer is to transfer the amount by mail in any account of same bank. Telegra-hic transfer is same like the MT but here fa1 machine is use instead of mail. Pay order is used for intercity -ayment. This is main difference between +emand +raft and Pay ;rder. #all de-osit recei-t is used in case of tender or auction. CLEARIN. #learing is used to -ay or recei.e -ayments to other banks. There are 2 ty-es of clearing 0nward clearing ;utward clearing I&) r( %"e ri&' #he4ues of our branch that are de-osited at other banks are brought to us by @0/T. This is called inward clearing. 0n inward clearing we +3B0T a c of our a c holder and #$3+0T other branch. Out) r( %"e ri&' 0n outward clearing che4ues of other banks are -resented in our branch. 0n it we check certain factors such as words and figure difference) date of che4ue etc.* stam-s are stam-ed in these che4ues #learing stam #rossing stam Payees a c credited stam0n outward clearing we +3B0T sus-ense a c and #$3+0T a c no. of our a c 7

holders. CHE1UE RETURN IN OUT5ARD CLEARIN. 0f che4ue is returned in outward clearing we make an entry of the returned che4ue in the register and gi.e it back to our customer after ha.ing his signatures in the register. CHE1UE RETURN IN IN5ARD CLEARIN. 0f the che4ue is returned in inward clearing) we fine our a c holder $s ',, as a -enalty and also make an entry in the register. INTER BRANCH CREDIT TRANSACTION 6IBC7 0B# ad.ice is made for both inward and outward clearing. CASH #ash de-artment -erform the res-onsibilities to deal with cash) transfer amounts from one account to other accounts and calculate the -rofit for different ty-es of accounts. ?hen che4ue is -resented to bank) officer match the word and figure of che4ue. 0f words and figure is correct then officer .erify the signature and check the date. " che4ue can be con.erted in to cash within si1 month. "fter si1 month che4ue e1-ires. /or P&! account bank calculate the -rofit on the minimum balance in account from Kth to 27th of the month. Bank -ays this -rofit after si1 moth or transfer in account of account holder after si1 month. /or cor-orate account -rofit is calculated on daily basis. Profit is credited after a moth in the #P" account. /ormula used to calculate the -rofit is Profit N #a-ital O days O GLH *K5 O ',, FOREI.N TRADE /oreign trade is di.ided in two -arts) 0m-ort and 31-ort Im$orts /or im-ort any -roduct) im-orter first contact with foreign e1-orter. There are three -ossibilities for trade) one is the ad.ance -ayment of the im-orted -roduct) second is contract between two -arties and is the &#) when both -arties im-orter do not rely on foreign e1-orter. "d.ance -ayment and contact is sim-le -ayment through bank) but in &# bank guarantee about the foreign e1-orter. To o-en &# im-orter re4uest for issuance of &# on legal re4uired -a-er with Performa in.oice) 0 forms and insurance of the -roduct. 0m-orter also gi.es detail of condition of &#. "fter this re4uest bank will send &# through 7

swift. "fter recei.ing &# documents) foreign im-orter shi-s the -roduct and sends the bill of lading or "?B to local bank. Bank checks the &# and bill of lading. 0f there is any discre-ancy) bank takes the acce-tance from im-orter about the discre-ancies. To clear the im-orted -roduct from -ort) im-orter takes the bill of lading from bank after the -ayment of &#. 0f im-orter cannot -ay the amount there is two facilities from bank) /0M and /"T$. 0n /0M the im-orted -roduct remain in the custody of bank. 0m-orter has facility to reali2e the 4uantity of -roduct as after -ayment of that 4uantity. /"T$ facility is normally for '2, days. This facility is for the reliable customers. 0n this facility customer release the whole im-orted -roduct. E*$ort 31-ort is just like im-orts but here we act as e1-orter bank. 0n e1-ort we -erform all that acti.ity which foreign banks -erform in case of im-ort. 31-orter -ro.ides the documents like bill of e1change) "?B) certificate of origin) -acking list and all other document re4uired in contract or &# with 3 form. Bank sends these documents to foreign bank. ;n recei.ing these documents) bank -ays the amount according to conditions in &#. ;r #ontact. 0n e1-ort bank -ro.ides the refinancing and -urchasing facility to customers. ?hen customer has relied on foreign im-orters then bank take risk and -urchase the e1-orts after shi-ment. 31-orter recei.es -ayment from bank) now whole risk of this trade is con.erted to bank. This facility is called negotiation or -urchasing. 0n refinancing bank finance the local e1-orter according to -rudential regulation of state bank. A(+ &%es Main working of "d.ances is de-artment is to -ro.ide loan to cor-orate client. This main job of this de-artment is to maintain the credit limit of client) offer loan) a--ro.e loans and like other work related to cor-orate loan. @ormally banks offer the loan in form of +emand finance) cash finance) running finance and other schemes according to customer re4uirements. $unning finance facility is to meet the day%to%day e1-enses. 0n running finance bank debit the account of cor-orate client and issue the che4uebook. #lient can cash the re4uire amount from this account. #ash finance facility is to meet seasonal re4uirement of cash. /or e1am-le in cotton season) te1tile related com-anies re4uire cash to buy cotton. Bank -ro.ide loan and cotton remain in custody of bank) to -ro.ide different loans banks re4uire different securities like &ien) Pledge) =y-othecation and Mortgage. 7

&ien is marked on li4uid assetsB mortgage is for the assets like land or building. Pledge is offered for cash finance or seasonal finance. KARACHI8 T-e B &, of Pu&/ ! 6BoP7 fi& ""# &&ou&%e( its &&u " resu"ts o& Fri( # fter $erio( of t-ree #e rs &( $oste( &omi& " $rofit of Rs9:; mi""io& for <=>>? &( Rs: !i""io& i& <=>= &( <==@? fo""o)i&' si'&ifi% &t &et "osses of Rs>= !i""io& res$e%ti+e"#A The bank had sto--ed -ublishing its accounts since 2,,8 when the in.estigations began against the irregularities of the bank in 2,,7. The stock>s -erce-tion remained negati.e since 2,,7 on account of limitation of the sco-e regarding determining -ro.isions on $s8.K billion loans to three com-anies) mainly =aris 9rou-. "s e1-ected) the bank -osted losses during 2,,7 and 2,', on account of high -ro.isions and write%off of $s',.2 billion and $s*.* billion) res-ecti.ely. "long with the -ro.isions) the net interest income G@00H also remained in negati.e) owing to higher de-osit rates so as to kee- their de-osit base intact. =owe.er) with the re.ersal in -ro.ision against loans of $s*.2 billion in 2,'' led to a -ositi.e line for the bank) nonetheless) @00 still remained negati.e. "s a result) the bank was able to -ost earning -er share of KK -aisas in 2,'' against the losses of earning -er share of $s7.K2 and an earning -er share of $s'7.,4 in 2,', and 2,,7) res-ecti.ely. "nalysts attributed the nominal -rofit for 2,'' to -ro.ision of write%offs) otherwise the banks remained in the red 2one. PThe net -rofit is mainly due to -ro.isioning re.ersal and net income was not enough to -ost growth)Q said /aisal 6han) =ead of $esearch) "rif =abib 7

&imited. =e added that the bank would need time to im-ro.e its books. "s far as the balance%sheet is concerned) the BoP>s de-osit base grew by 25 -ercent since 2,,7 to $s2*8 billion) while ad.ances and in.estments witnessed a growth of fi.e -ercent and K, -ercent) res-ecti.ely) during the same -eriod. The bank>s e4uity) which had wi-ed down to $s*.7 billion in 2,,8) also reco.ered and rose to $s',.7 billion in 2,''. The rise in e4uity was mainly due to the in.estment by the Punjab go.ernment of $s7 billion to im-ro.e the financial health of the go.ernment owned financial institutions following the end of three years grace -eriod gi.en by the !tate Bank of Pakistan G!BPH. The Punjab /inance +e-artment has released this amount to the BoP on +ecember *,) 2,'' as the three years grace -eriod gi.en by the central bank to the Bank of Punjab ended on +ecember *') 2,''. "fter $s7 billion the Punjab go.ernment>s share in the BoP has increased to at least KK -ercent from 5' -ercent. The Punjab go.ernment has a--roached the central bank to allow the BoP to not release annual financial results for the three years -eriod after =aris !teel wrong lending case in BoP former -resident =amash 6han) which weaken the financial -osition of the bank and bring it on the .erge of colla-se.

S5OT ANALYSIS Stre&'t-s 0. The Punjab go.ernment is su--orting to PThe Bank of PunjabQ. 0t builds trust of client on Bank. 00. M ! P"#$" has awarded the Bank with the credit rating ""% for &ong term and "'( 7

for !hort term) based on its financial results for the year ended as on *'st +ecember 2,,4 000. The Bank of Punjab has a large network of branches. There are 254 branches all o.er the Pakistan 0<. The Bank of Punjab has com-uteri2ed banking system. <. The Bank of Punjab -ro.ides the online Banking facility to its customer. <0. To train its em-loyees Bank of Punjab ha.e training center. There are different training session are held for new and old em-loyees. <00. /inancial -osition of The Bank of Punjab is growing e.ery year. The Bank of Punjab has highest earning -er share. 5e ,&esses 0. The Bank of Punjab has only few branches out of -ro.ince Punjab. ;ther banks ha.e com-etiti.e edge. 00. "s Bank of Punjab has e1tensi.e branches within the Punjab -ro.ince. 0t is difficult to manage large number of branches) further it increase the cost. 000. The staff members of The Bank of Punjab are not satisfied with the -ay scale increments and -romotion criteria as com-are to other banks. 0<. The work res-onsibilities are broken into small -arts. <. The bank is offer regular -roduct line. There is need to enhance the -roduct line. <0. Turn o.er rate of em-loyees is increasing) as they are not satisfied with the -ay structure. O$$ortu&ities 0. "s economy is growing) there is more in.estment demand in Pakistan. Banks ha.e o--ortunity to enhance their business. 00. 0m-orts and e1-orts of the country are increasing. 000. ?ith the threat of ?T; !M3s re4uire more funds to enhance their infrastructure to im-ro.e the 4uality. Banks are the source of these funding. 0<. The number of salaried -ersons is increasing with the economy structure of the country. This creates o--ortunity in consumer financing. T-re t 0. The Bank of Punjab has major 9;<T. de-osits. ?ith change of go.ernment -olicies 7

it may affect the bank 00. 3ntrance of foreign bank in com-etition with local bank is great threat for bank of Punjab. 000. The !tate Bank of Pakistan often im-oses .arious restrictions on banks. Therefore) none of banks is inde-endent in -olicy making and can launch any -roduct without the -ermission of the !tate Bank of Pakistan. 0<. 9o.ernment legislations about banking sector <. Political factor more influence on The bank of Punjab RECOMMENDATIONS &ast fi.e year -erformance of The Bank of Punjab shows that the bank of Punjab is increasing its -rofitability and its de-osits. Being the bank of go.ernment) the bank of Punjab has major go.ernment accounts. The bank of Punjab should try to maintain the accounts of di.ersified com-anies. This will reduce the risk of go.ernment -olicies To manage its all branches the bank of Punjab should establish the intranet system. To attract new customer bank should offer .alue added ser.ices The Bank of Punjab should increase the line of -roduct to attract the new clients. Those acti.ities) which a one -erson can -erform) should be integrated to sa.e time. The bank should re.ise its -ay structure and com-ensation -lan according to the market) in .iew to decrease the turn o.er rate CONCLUSION The bank of Punjab is the one the best bank in local banking sector. 0ts growth rate is highest among all local banks. There are some flaws like the small -roduct range) ha.e two are three major 9;<T accounts and like others. The bank of Punjab has -otential to become to- ranking bank in Pakistan banking industry. My basic -ur-ose of this internshi- is to learn about the working of bank. +uring my internshi- 0 got knowledge about general banking) foreign e1change and ad.ances. !taff 7

member of bank of Punjab are coo-erati.e with me and really hel- me to achie.e my objecti.e.

Bi!"io'r $-# htt-A www.bo-.com.-k htt-A www.sb-.org.-k 7

htt-A www.business%standard.com htt-A www.sheshunoff.com !taff of the bank of Punjab "nnual re-ort of the Bank of Punjab

."oss r# A(+i%e " bankMs written acknowledgement of a transaction ATM automated automatic teller machine Asset tur&o+er is a ratio focusing on the .olume of sales achie.ed by the business Asset $ortfo"io "llocating the funds to different assets classes A5B "ir way bill Bi"" of e*%- &'e "n order written by an e1-orter instructing an im-orter) or an 0m-orter>s agent) to -ay a s-ecified amount of money at a s-ecified time Bi"" of " (i&' " document issued to an e1-orter by a common carrier trans-orting merchandise. 0t ser.es as a recei-t) a contract) and a document of title. BPS Basic -oints G!et by the bank to adjust marku-H C $it " A(e4u %# #a-ital ade4uacy means ha.ing enough ca-ital funds to -rotect it from the risk that customer could lose their de-osits as a result of trading losses) e.g. from bad debt by the bank. CDR #all de-osit recei-t CPA #or-orate -remium account 7

Cre(it r ti&' A measured judgment) or formal o-inion) about the likelihood that 0nterst -ayments on -articular issue of bonds or other debt security will be -aid full and on time) and that debt -rinci-le will be re-aid in full at maturity. $atings are by s-ecialist agencies. The highest credit rating for long%term debt is """. Commer%i " ! &,s "n authori2ed institutions and -erform four functions. They acce-t de-osits) make loans) arrange -ayment of bills and -ro.ide a number of customer ser.ices D t C-e%, +ata check is a document has records of all loan of customer form all banks. DD +emand draft DAPA Note +emand -romissory note) a legal document Di+i(e&( Part of a com-anyMs -rofits -aid to shareholders E r&i&' $er S- re the -ortion of a com-anyMs -rofit allocated to each outstanding share of common stock E4uit# Total assets minus total liabilities. FIM /inance against im-orted merchandise FATR /inance against trust recei-t H#$ot-e% tio& KIBOR 6arachi 0nter bank offer $ate LC " bank issued document that guarantees -ayment for a -re%s-ecified -eriod and amount Letter Of ut-orit# " written agreement to allow Bank to de-osited or withdrawn from an account Lie& "n asset held in e1change for debt financing. 0n lien normally there are li4uid assets like bonds) shares. M r,u$ The charge you -ay if you borrow money or the income you get if Fou in.est it. MT Mail transfer Mort' 'e Mortgage is charge on immo.eable -ro-erty to secure the finance NIFT @ational 0nstitute of facilitation technology G-.tH 7

PLS %%ou&t Profit loss sharing account Profit !i"it# R tio The ratio used to measure the ability of a com-any to generate -rofits. P"e('e Pledge is the bailment of goods for security. 0n -ledge goods are in -ossession of bank. Si'-t LC 0n sight &# -ayment will be made on recei.ing the shi-mentdocuments. Sto%, (i+i(e&( " -ayment by the cor-oration in share of stock rather than cash S#&(i% te " grou- of banks acting together tem-orarily to loan money in a syndicated credit or to underwrite a new issue of bonds TT Tele gra-hic transfer Us &%e LC 0n usance &# -ayment will be made after 7, or '2, days of shi-ment 5or,i&' C $it " !tock -lus debtor minus short%term creditor