IN THE NAME OF ALLAH THE MOST GRACIOUS AND THE MOST

MERCIFUL

INTERNSHIP REPORT
ON
THE BANK OF PUNJAB

SUBMITTED BY:
Muhammad Arshad Raza
BBIT (Hons) 7th Semester
Roll No. F12BB024
Section B Morning

Institute of Business and Information Technology

University of the Punjab Lahore

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Table of Contents
Content

Page number

Executive summary

03

Acknowledgement

04

History of the bank

05

Board of directors

06

Branch network of BOP

08

Vision/Mission/Core values

09

Products

10

Functions of BOP

20

SME Finance

24

What I have learned in my internship?

26

Tax deductions

43

New things learned

52

Marketing divisions

53

SWOT Analysis

55

Dilemmas faced by the bank

57

Recommendations

60

Concluding remarks

61

References

64
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 Source

65

EXECUTIVE SUMMARY
The text of the report is organized first to provide a background of the BANK OF
PUNJAB which is established in 1989, in pursuance of The Bank of Punjab Act 1989 and
was given the status of scheduled bank in 1994. Bank of Punjab is working as a
scheduled commercial bank with its network of 272 branches at all major business
centers in the country and is headquartered in Lahore, Pakistan. and then to focus on the
products of the bank and then operational aspects in detail. Its products includes Deposit
Products (Current Accounts, BOP basic banking Account ,Profit loss Sharing, PLS
Saving Account, Senior Citizens Saving Account, Gharayloo Saving Account, Ziada
Munafa saving Account, PLS-Saving profit Plus Account, Corporate Premier Account,
Corporate Premier Term Account, Munafa Hi Munafa Term Account , BOP Tijarat
Account (LCY), BOP PLS Supreme Saving Account, BOP FCY Supreme Current
Account, BOP FCY Supreme Saving Account), Loan Products (Commercial Finance,
Running Finance, Demand Finance, Cash Finance, Consumer Finance, Aasaish Loan,
Quick cash, Car Loan House, Loan Smart), Debit Card, SME Finance, Agriculture
Credit.The work done by me includes, cheque book issuance, in which I have learned
how to issue first cheque book to customer, then after that second cheque book. What to
do when the requisition for the second cheque book lost. Then I have mentioned what is
clearing of cheques, it includes inward clearing and outward clearing. What is collection
of cheques from within city and from out of the city; it includes inward bills for
collection and outward bills for collection. After that, I have mentioned how to transfer
the cheques from one account to another account or one branch to another branch; it
includes intercity transfer and internal transfer. What is the procedure when a customer
submits the utility bills in bank in form of cash or in form of cheque? How to issue and
operate locker to the customer is mentioned in it, the whole table of lockers rent and
security is mentioned in it.
Then this report includes complete financial analysis (ratio analysis and trend analysis) of
the Bank of Punjab with necessary annexure of balance sheet, cash flow statement and
subscribed capital details.
At the end I have given my observations about bank which includes both its strengths and
dilemmas and then conclusion of my analysis about Bank of Punjab is given.
3

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ACKNOWLEDGEMENT

I acknowledge our indebtedness:

To ALLAH for inspiration, guidance and persistence survival despite our sins. Words are
wholly inadequate to express my appreciation to those in my family (particularly my
parents) for all they have endured for me.
Thanks to all staff members of Bank of Punjab Chunian. Who helped me a lot
throughout my internship duration and provided me all practical knowledge about my
internship. I feel very lucky because under the supervision of such a cooperative team I
learned so many things and gain knowledge.
After that I am very thankful to the Branch manager (Muhammad Irfan) who guided
me and provided me enormous volume of oral as well as documentary information that
making the majority of my work easy.
After that I would like to thanks my loving parents whose prayers and provided all
resources that I required in this internship make me able to complete this task.

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HISTORY OF BOP
Established in 1989, in pursuance of The Bank of Punjab Act 1989 and was given the
status of scheduled bank in 1994. The Bank of Punjab is working as a scheduled
commercial bank with its network of 272 branches at all major business centers in the
country. The Bank provides all types of banking services such as Deposit in Local
Currency, Client Deposit in Foreign Currency, Remittances, 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
hitherto untapped local resources, promoting savings and providing funds for
investments. Attractive rates of profit on all types of deposits, opening of Foreign
Currency Accounts and handling of Foreign Exchange business such as Imports, Exports
and Remittances, Financing, Trade and Industry for working capital requirements and
money market operations are some facilities being provided by the Bank. The lending
policy of Bank is not only cautious and constructive but also based on principles of
prudent lending with maximum emphasis on security.
In Pakistan, over long periods of time the gap in saving and investment and balance of
trade deficit has posed serious threats to the target levels of growth the ailments related to
the budgetary deficit and public debt, both foreign and domestic are in addition. Investing
even such adverse circumstances registered a favorable change, which speaks of hidden
potential and strength of economy.
Fortunately, the banking sector of the country has the well organized and properly
institutionalized system, which is the major vehicle not only for mobilization of resources
to finance trade, agriculture, and industry but also for the effective conduct of monetary
policy.
The emergence of new bank on national scene in the early 1990s has done two important
services to the nation.
The services of the bank in the fact of severe competition have improved considerably so
that now consumer are left with extensive choice to do or undo their business relations
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Board of Directors

01

MR. GHAFOOR MIRZA

CHAIRMAN

02

MR. NAEEMUDDIN KHAN

ACTING PRESIDENT

03

MR. TARIQ MEHMOOD PASHA

04

MR. TARIQ BAJWA

05

MR. RIZWAN ULLAH KHAN

06

MR.
JUNAID
KHAWAJA

07

MR. M.NAVEED MASUD

08

MR. FAROOQ AHMED AWAN

09

MR. RAZA SAEED

DIRECTOR

DIRECTOR

DIRECTOR

ASHRAF DIRECTOR

DIRECTOR
DIRECTOR

DIRECTOR

BOP Management
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Mr. Naveed Hafeez Shaikh

Acting General Manager HR

Mr. Nadeem Amir

General Manager Finance

Mr. Sharjeal Masud

General Manager Operations

Mr. Muhammad Salim Mirza General Manager Treasury

Mr. Shaheen N. Qureshi

General Manager Special Assets

Dr. Shahid A. Zia

General Manager T.R.C. & P Division

Mr. Feisal Azmat Khan

General Manager IT

Mr. Muhammad Hanif

Head Audit & Inspection

Mr. Salman Saeed

Head Credit Policy

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Branch Network of THE BANK OF PUNJAB

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Vision
To be a customer focused bank with service excellence.

Mission
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 programme driven products & services in the Agriculture and Middle Tier
Markets through a motivated team.

Core Values
Our Customer

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 operate

Recognition
Reward

for the talented and high performing employees

and

Excellence

in every thing we do

Integrity

in all our dealings

Respect

for our customers and each other

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PRODUCTS OF BANK OF PUNJAB

DEPOSIT PRODUCTS:

a. 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.
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 postdated (payable on any future date)
and stale (06 months after issuance date) Cheques and against un-cleared funds.

b. Basic Banking Account:

The minimum initial deposit will be Rs.1000.

No profit will be Payable.

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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.

Unlimited free of charge ATM withdrawals from Bank'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.

c. 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.

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. The
necessary consent to this effect will be obtained at the time of opening of the
11

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account. The orders of the court will, however, be followed in case the guardian is
appointed by the court.

d. 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 Banks 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.
Minimum Monthly Balance
Rs. 0
upto 10,000/Rs.10,001 upto 200,000/Rs.200,001 upto 400,000/Rs.400,001 upto 500,000/-

* Expected rate of profit

Normal PLS SB rate
5 % p.a.
7 % p.a.
8 % p.a.

This product is governed under PLS rule of Profit & Loss sharing system. The
rates mentioned are expected and the Bank reserves the right to review/revise the
profit rates quarterly.

Maximum profit @ 8.0 % p.a. as per different slabs shall be paid on minimum
monthly deposit upto Rs.500,000/-. Deposit can exceed Rs.500,000/- but no profit
will be paid on amount over and above Rs.500,000.

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 senior citizen account holders can also open account under this scheme.

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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

Preferably PLS SB joint a/c should be opened with special instructions of Either
or Survivor which must be jointly authenticated under full signatures of the Joint
A/c holders.

Unlimited transaction (debit/credit)

kFree complimentary issuance of first ATM/Debit Card

Free complimentary issuance of first Cheque Book of 25 leaves

25 % reduction in rental charges of small or medium locker subject to availability.

Priority banking especially in utility bills payment, counter service etc

The product carries all characteristics/conditions pertaining to PLS SB account i.e.
issuance of DD/TT/MT/PO etc as per Banks Schedule of Charges except payment
of profit which shall be paid on monthly basis on minimum monthly deposit up to
Rs.500,000/- only as per admissible rates shown against each minimum monthly
balance.

e. 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 Banks 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.

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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 Banks Schedule of Charges.

The profit slab is as follows:

Minimum monthly balance

Rs. 0
upto 10,000/Rs.10,001 upto 200,000/Rs.200,001 upto 400,000/Rs.400,001 upto 500,000/-

* Expected rate of profit

Normal PLS SB rate
4.0 % p.a.
5.0 % p.a.
7.5 % p.a.

Maximum profit @ 7.5 % p.a. as per different slabs shall be paid on minimum monthly
deposit upto Rs.500,000/-. Deposit can exceed Rs.500,000/- but no profit will be paid on
amount over and above Rs.500,000.

f. 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.

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
provisions. 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.

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g.

Corporate Premier Account:

This account has been introduced for 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.

h.

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.

i. Munafa Hi Munafa III

This is a term deposit product. The term is from 1 month to 5 years and the profit is paid
on monthly basis. The minimum amount of deposit is Rs.100,000/-. The rate of profit is
from 6.0 % p.a. to 10.50 % p.a. depending on the tenure which is higher than Banks
normal term deposits as follows:

Term

*Expected
Profit
Rates p.a.

Minimum Profit payment on monthly

amount of basis (With Holding Tax to be
Deposit
deducted)
Rs.

6.00 %

100,000/-

Rs.500
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month
3
months

7.00 %

100,000/-

Rs.583

6
months

8.00 %

100,000/-

Rs.667

1 year

9.75 %

100,000/-

Rs.813

2 years

10.00 %

100,000/-

Rs.833

3 years

10.25 %

100,000/-

Rs.854

4 years

10.40 %

100,000/-

Rs.867

5 year

10.50 %

100,000/-

Rs.875

LOAN PRODUCTS
a.

Pledge of Shares:
This facility is generally extended to companies or individuals on selective basis
against pledge of tangible securities such as Shares. Such financing is supportive
to secondary Capital Market concept. The facility is required to be adjusted
periodically or within the period as specified in the Sanction Advice/DAC. Given
that Stock Market in Pakistan is volatile, banks are required to refrain from
extending loans to the market players who are engaged in speculations for short
term Gains, which quite often they fail to make, consequently rendering the
facility to non-performing ultimately.

b.

GOVERNMENT SECURITIES:
Government Securities include Defence Saving Certificates (DSCs), Special
Saving Certificates (SSCs), Regular Income Certificates (RICs), Behbood
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Certificates, US Dollar Bonds & NIT Units etc, issued by National Saving Centre
Government
of
Pakistan/National
Investment
Trust.
Large amount of funds representing Provident Fund, Benevolent Fund
collections are invested in the Government Securities, which are yielding better
return compared to placements with Commercial Banks. Banks also extend credit
facilities against pledge of Deposit Certificates or other instruments of value
issued in the name of Individuals, Joint Holders Public Bodies, and Firms, issued
by various Government regulated Investment/Saving Organizations, which at the
moment are restricted to Maximum of Rupees One Million and are subject to
change.

c.

Hypothecation of Stocks:

Industrial organizations have to invest a large sum of money to build stocks of raw
material to up keep their manufacturing line. This is apt to create liquidity constraints in
the Financial Balance Sheet of the customer. To manage such financial gaps/shortfall in
their cash flow they usually resort to borrowings from Banks against Hypothecation of
raw material/semi or finished goods held by them in their stocks.
Banks in such cases although do not have a physical custody of the goods, however have
a legal Charge/Lien established, thereon, providing a legal recourse to the Bank to take
custody of the stocks, in the event the borrowers default to repay the loan or fail to meet
their obligations, as agreed. Criteria to merit this facility is provided in the Banks Credit
Policy Manual, which is care fully assessed by Risk Managers, while recommending a
credit proposal to credit committee.

d.
BOP

BOP ATM/Debit Card:

Apna

Cash

Card

is

an

ATM

plus

Debit

Card.

(a) The front of the card will have the following matter on it:

Card Holders Name

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International Bin Number (6 Digits - XXXXXX)

Card Number (YYYYYYYYYY) (total IMD+CARD num has to be = 16

(b) The back of the card will have:

Magnetic Strip Signature Panel

Conditions of Usage

M-Net and M-Net logo

Service :
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.

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.

Plastic with M-Net logo:

All new plastic that will be ordered from now on will bear the M-Net logo. The
existing plastic will be used for customers who want the debit card facility, as the
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cost of the wastage of scrapping our existing stock is too high. Merchants will
have to be informed to accept all BOP plastic, irrespective of M-Net logo. New
order of plastic will bear M-Net logo.

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.
ii. Dormant, inoperative, blocked or restricted accounts.
iii. Accounts with NIL balance.
iv. Term Deposit Accounts.
v. NIDF Accounts. (Non Interest Demand Finance Accounts)
vi. Accounts requiring thumb / photo for operation (illiterate accounts)
ATM/Debit cards can only be issued on local currency accounts.

Functions of Bank of Punjab

Primary functions:

Acceptance of deposits:

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The fundamental function of bank is the acceptance of deposits. All other

functions are based upon this function. in order to attract general public and to
persuade people to deposit money in the bank, three basic type of accounts are
maintained:

Current Account:
Is the one where the depositor is allowed to withdraw his amount any time
he wishes. Normally the traders and merchants keep such accounts with
bank. This makes it possible for them to deposits or withdraws money at
their ease. As the amount from this account can be withdrawn at any time
so the bank does not pay any interest on such accounts.

Saving Account:
Saving accounts are helpful for those who have low levels of incomes and
savings. Saving account help in the mobilization of the savings of low
income people. Nominal rate of interest is paid by bank in such accounts.
The amount from this account can be withdrawn subject to certain terms
and conditions of the bank.

Fixed Deposits:
As the name implies this type of account are accepted by the banks for a
certain fixed period of time. The customers however can withdraw his
money during usual banking hours after giving reasonable prior notice.
Bank pays higher rate of return on this type of account.

Advancing Loans:
While advancing loans a complete legal systematic procedure is followed. As the banks
deal in some other peoples money, the bank management takes all necessary precautions
to make certain the return of the money advanced. The loans are normally advanced

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against securities which are valued by the banks experts. The amount of loan is credited
in the borrowers account and from there money can be withdrawn through cheques.

Secondary Functions
Agency Functions:
The bank performs different functions for their clients and while doing so they act as an
agent of their clients. These functions are as follows:

Collection of dividends:
Bank acting as an agent of its clients collect dividends and interest on stocks and shares
and charges a nominal commission against the provision of such services.

Collection of Cheques:
BOP act as an agent of its clients while collecting and making payments of bills,cheques
etc.

Selling and purchasing securities:

BOP share department sometimes purchases or sells securities or shares on behalf of its
clients.

Obeying standing instructions:

Sometimes client order the bank to make payments of regularly recurring nature directly.
Such payments may include subscription fees of clubs or journals, annual membership
fees etc. but Bank charges a minute amount for executing such instructions.

Executor or trustee:
A client may direct his bank to act as executor or trustee I dealing with other business
parties or while setting business disputes with other parties. He may ask the bank to
provide technical assistance or knowledge on certain particular matters. The bank shall
perform such functions in the interest of its client.

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Funds transfers:
BOP can transfer funds from one bank or branch to another. This gives an ease to its
clients and in a way increases the liquidity of the money deposited in the bank. A client
can use his cheque book even at a place where his bank has no branch.

Agent, Representative:
BOP may act as an agent of its client in dealing with the other banks or financial
institutions. A bank can also be representative and correspondent of its client as required
by the circumstances.

General utility services

Providing lockers:
BOP provides lockers for their clients. This is a mean of providing safe custody to the
valuables of the clients. This has minimized the risk of loosing valuables due to robbery.

Issuance of credit instruments:

BOP issues various forms of credit instruments and through this they play a unique role
in increasing the liquidity power of their clients. It issues travelers cheques and drafts etc
which are now considered more convenient and safe substitute for cash.

Providing trade information:

BOP has a separate panel of experts which provide necessary trade information as
required by different clients.

Financing foreign trade:

BOP discount foreign bills of exchange. While performing this function they play their
role in foreign trade and in facilitating exports.

L/C operations:
BOP plays an important role in foreign trade by performing L/C operations. L/C is just a
guarantee given by one bank to a third party i.e., exporter. The guarantee ensures that he
will receive payment of his goods provided he performs certain obligations. It also
ensures importer that payment will only be made when goods have been received. L/C
ensures reliable import/ export deal.
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L/G operations:
BOP also issues letter of Guarantee for its clients. The main difference between L/C and
L/G is that no trade of goods and documents, services involved.

Miscellaneous/others
Zakat collection:
BOP collects zakat from the account holders which have more than Rs.15000 in their
profit bearing account. Zakat is deducted from the account on 1 st of RAMZAN at the rate
of 2.5% on total deposit on behalf of government. Main branch of every bank gets credit
of Zakat then it goes to BAIT UL MAAL (religion ministry). CZO (collection Zakat
Officer) does make this transfer from bank to BAITUL MAAL.If someone wants the
exemption of Zakat he has to give declaration with the same contents which are specified
in a letter format known as CZ50.

Collection of utility Bills:

BOP on behalf of government collect utility bills from the general public. In this way it
becomes convenient for the masses to pay off the utility bills in time. Rs.8 commission is
charged by bank on utility bills. Concerned department is credited with the amount of bill
and cash is debited.

Encashment services:
BOP also plays their role in the encashment of foreign exchange bearer certificates or
other different bonds.

Guarantee, indemnity business:

BOP also involved in guarantee and indemnity business.
Guarantee is a contract to perform the promise or discharge the liability of a
third person in case of his default.
In indemnity, one person promises to compensate other from the loss which
may arise due to the conduct of any person.
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Hajj services:
BOP helps pilgrims in submission of HAJ applications and they also guide
them in other procedural matters.

SME Finance
Clean P HYPERLINK "http://bop.com.pk/CNGFilling.aspx"akistan - CNG
Filling Station Scheme
Lady Entrepreneur Financing Scheme
Auto Lease Financing Scheme
Car Dealers Financing scheme
Karobar Barhao Scheme
Fertilizer Dealers Financing Scheme
Ali Akbar Group - Franchise Financing Scheme
Alas Honda Limited - Authorized Dealers Financing Scheme
Financing Scheme - Purchase of Office/Shops

Agriculture Credit:

Kissan Dost Tractor Scheme

Second Hand Tractor Lease Finance Scheme
Kissan Dost Aabiari Scheme
Kissan Dost Mechanization Support Scheme
Kissan Dost Farm Transport Scheme
Kissan Dost Eslah-E-Arazi Scheme
Kissan Dost Live Stock Development Scheme
Livestock Breed Improvement Trough VVW
Kissan Dost Commercial Agro Services
Kissan Dost Agri Mall Finance Scheme
Corporate Farming Finance Scheme
Commercial Lease Finance Tractor Scheme
Demand Finance-Sheds Construction and Civil Works
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Landless People for Purchase of Buffaloes

Lease Finance Facility for Milch Animals
Running Finance-Livestock/Poultry and Fish Farms
Kissan Dost Model Dairy Farms (PDDC)
Kissan Dost Model Milk Collection Center (PDDC)
Financing For Potato Grower
Kissan Dost Green House Finance Facility
Kissan Dost Cold Storage Finance Facility
Scheme for Controlled Sheds
Lease Finance Facility for Installation of Biogas Plant
Group Financing to Small Farmers
Clean Credit Facility through Syngenta Franchisees
Zarkaashat Drip Irrigation System

Non Fund Based Products:

Documentary letter of credit

Standby letter of credit

INTERNSHIP ACTIVITIES
Opening of new account:
The opening of new account is the establishment of customer banker relationship. In this
section I gain the practical knowledge about opening account. In this regard customer can
open following accounts in BOP:

Current account (CD)

Profit and loss Saving account (PLS)
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Basic Banking Account (BBA)

Business trading account(BTA)
Young line saving account(BTA)

These accounts can be categorized

Individual
Firms
Company
Trust
Staff
Salaried person
Joint
Proprietorship
Club/society/trust
Security account
corporation
Others
When customer wants to open an account in a bank he visits the particular branch and
bank officer suggests him that which type of account suits its needs. Bank of Punjab
offers various types of products (accounts or deposits) to its customer. Those are
mentioned above.
On account opening form following things are also marked:

Branch
Branch code
Account number allotted to customer
State bank code according to type of account
Date
Currency of account that can be PKR, USD, GBP, JPY, EUR etc
Photographs
Title of account
Father/ husband name
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Mailing address
Telephone numbers
E-mail address
Nationality
Signature
Introducers (if any) account number, CNIC, signature
Applicants signature or thumb impression
Applicants CNIC number
Mentioning Nominee in case of expiry of three years from the date of last
transaction

Precautions before opening an account:

Before opening of an account, the banker should obtain satisfactory

introduction of the applicant.
A banker should obtain specimen signature of opener on the account
opening form and also on the card.
The account opening form must be filled completely, correctly and with
proper attention.
The banker should get personal information about the character and
capital of the customer tactfully.
New accounts must be opened with cash. A cheque may create
problems.

HOW TO ISSUE A NEW CHECK BOOK?

When account opens we take a new requisition form signed from customer (anexF-11)
and sent it to NIFT (National Institutional Facilitation Technologies).

NOTE:
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In BTAs accounts if the balance remains up to RS.100, 000 or more than RS.100, 000,
then the cheque book will be issue free of cost.

PROCEDURE OF PERSONALISED CHEQUE BOOKS

SENT TO NIFT:

Make requisition card of NIFT with name and account number for printed cheque
book.

Deducted cheque book charges from account through systems respective module,
here enter account number and number of pages, then system will deducted charges.

Then we will enter E for entry and note the transaction number for authentication.

PROCEDURE WHEN WE RECEIVE CHEQUE BOOKS

FROM NIFT:

We enter number of cheque books we received from NIFT, cheque number, starting
number of 1st cheque book and last cheque number of last cheque book in security
stationary register for security purpose.

Then we enter the above information in respective module. Here also we enter the
account number, number of pages.

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Then we enter first cheque number of cheque book received, system will
automatically show the last cheque number, date of sending cheque book to NIFT and
charges which had been already deducted from account through system.

PROCEDURE OF ISSUE CHEQUE BOOK TO

CUSTOMER:

Take out the requisition slip which we received from the customer during account
opening.

Then we enter present date, title of account, account number and first cheque
number to last cheque number.

Then we enter cheque book in system through respective module, here we enter
account number then P for personalized cheque book and S for simple cheque
book.

PERSONALISED cheque book means that charges had been already deducted
from the customer account.

SIMPLE cheque book means charges will be deducted when issuing cheque book
to customer.

If we type P then system will show cheque number automatically.

If we type S then we have to enter cheque number by our selves.

Then N for Normal entry and E for entry and note the transaction number for
authentication from another officer.

IMPORTANT NOTE:
If we are issuing a cheque book to account holder whose account is photo, then we have
to affix the following stamp on each and every page of the cheque book.
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All the cheques signed/ Thumb impression to be affixed in the presence of the
officer and attested by him

PROCEDURE OF ISSUING 2ND CHEQUE BOOK TO

CUSTOMER:
For issuing second cheque book, customer will give us requisition slip from the old
cheque book.

PROCEDURE OF PERSONALISED CHEQUE BOOKS

SENT TO NIFT:

Make requisition card of NIFT with name and account number for printed cheque
book.

Deducted cheque book charges from account through systems respective module,
here enter account number and number of pages, then system will deducted charges.

Then we will enter E for entry and note the transaction number for authentication.

PROCEDURE WHEN WE RECEIVE CHEQUE BOOKS

FROM NIFT:

We enter number of cheque books we received from NIFT, cheque number, starting
number of 1st cheque book and last cheque number of last cheque book in security
stationary register for security purpose.

Then we enter the above information in respective module. Here also we enter the
account number, number of pages.
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Then we enter first cheque number of cheque book received, system will
automatically show the last cheque number, date of sending cheque book to NIFT and
charges which had been already deducted from account through system.

PROCEDURE OF ISSUE 2ND CHEQUE BOOK TO

CUSTOMER:
Take out the requisition slip which we received from the customer from old cheque book.

Then we enter present date, title of account, account number and first cheque
number to last cheque number.

Then we enter cheque book in system through respective module, here we enter
account number then P for personalized cheque book and S for simple cheque
book.

PERSONALISED cheque book means that charges had been already deducted
from the customer account.

SIMPLE cheque book means charges will be deducted when issuing cheque book
to customer.

If we type P then system will show cheque number automatically.

If we typeS then we have to enter cheque number by our selves.

Then N for Normal entry and E for entry and note the transaction number for
authentication from another officer.

PROCEDURE OF ISSUING CD 25 LEAVES CHEQUE

BOOK:
CD 25 leaves cheque book is banks own cheque book and it is hand made cheque book,
it is not delivered from NIFT.
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First of all take the requisition slip from the customer then enter the stamp of account
number, affix the stamp on every leave of the cheque book.
This cheque book is issued to customer on the same day when he gives the requisition
slip
Other procedure is same as above in issuing first cheque book.

WHEN THE REQUISITION FOR 2ND CHEQUE BOOK

LOST:
When the requisition slip for issuance of the second cheque book lost, then the account
holder fills another slip called LOST CHEQUE BOOK REQUISITION and requests
the bank to issue a new cheque book on this requisition because the original requisition is
lost by the account holder.Bank will deduct 75 rupees charges of cheque book and will
deduct 200 rupees extra charges from the account of the respective person.

Marking of Account CD/PLS as

Dormant/Inoperative/Unclaimed:

In case a CD and PLS account is not operated for a period of 1 year (this
period is decided by bank from time to time), the account will be classified
as DORMANT. Then the account holder has to give application for
activation with reason of not operating his account.
In case a CD and PLS account is not operated for a period of 2 year (this
period is decided by bank from time to time), the account will be classified
as Inoperative. Then the account holder will have to come personally to
meet branch manager for activation.
All such inoperative accounts which remain inoperative for other 3 years
they will be transferred to UNCLAIMED deposit accounts.
All unclaimed deposits which will remain inoperative for 10 years or more
from the day of last operation or transaction, their entire balances will be
transferred to the SBP as per their statutory require
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INWARD CLEARING:
When a customer of the bank paid to the third party, then the cheque come to the bank of
the customer for clearing this type of clearing is called inward clearing of customers
bank.

OUTWARD CLEARING:
When the third party pays payment to the customer of the bank then the customer submits
that cheque in his bank from clearing from other banks, this is called outward clearing.
OUTWARD CLEARING IS ALSO CALLED LODGMENT TO OTHER BANKS.
CLEARING HEAD IS STATE BANK OF PAKISTAN

LOCAL BILLS FOR COLLECTION (LBC):

When a customer receives the cheque of his same bank, but the branch is different, then
he submits the cheque in his own bank (the branch in his account is present) then that
branch send the cheque to the respective branch for collection, this procedure is called
Local bills for collection.

FOR EXAMPLE:
Customer of Chubourgi branch receives the cheque of Samnabad branch, then the
chubourgi branch sends that cheque in Samnabad branch for collection, then credited the
account of the customer in his own branch. This is called local bills for collection.

OUTWARD BILLS FOR COLLECTION (OBC):

When a customer receives the cheque of his bank or any other bank, which is situated out
of city then he submits that cheque in his own bank branch (where his account is present)
for collection from another bank. This is called outward bills for collection for that bank.

OBC ADVICE:
When we receive OBC advice, then the procedure of realize it is as follows;
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Go to the respective module.

Enter the required information.

1st reconciliation

2nd required data entries from advice.

Then note the transaction number.

HOW TO SEND OUTWARD CLEARING AND COLLECTION:

First of all we do outward clearing lodgment, in the whole day customers gives us their
clearing cheques then in afternoon we lodge these cheques to their respective banks
through the person of NIFT in the afternoon, but we place vouchers of the cheques with
us for proof. Before lodgment we place the stamps of clearing stamp of next day and
crossing on cheques and vouchers and Payees account credited stamp on back of the
cheques. Then we enter the clearing entries in the system in their modules.Then we enter
the collection entries in the system in their modules. For collection lodgment we place the
crossing stamp and payees account credited on realization on front and no stamp on
vouchers.Next procedure of outward clearing in the morning is as follows:
STEP#1:
After sending outward clearing we receive an advice from our head office main branch.
Advice contains:

Total amount of cheques send.

Total amount of rejected cheques.

Net amount after rejection.

Then in the system we reject that cheque which is rejected in advice, and then match the
total of advice with the total of the system.
STEP#2:
Then we enter the advice total amount in the system. Here we
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DEBITSHEAD OFFICE ACCOUNT.

CREDITSTATE BANK OF PAKISTAN ACCOUNT.
Then we save it and note the transaction number.
STEP#3:
Then in the system we enter the rejected cheques and closing of outward clearing.
On all the vouchers we place the stamp of transfer and signature verified and on
advice we place the stamp of signature verified

STEP#4:
If cheques are rejected due to some reason (either they are of inward clearing or outward
clearing) then a memo is attached to it, and the reason of rejection is mentioned on the
memo. After attaching memo we enter the rejected cheque in cheque returned
register and then send it back to the respective bank through NIFT person.

CHEQUE RETURNED MEMO:

Cheque returned memo includes the following:

Branch name.

Branch code

Title of account..

Date.

Cheque number.

For rupees

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IS RETURNED FOR REASON MARKED X:

FUNDS NOT SUFFICIENT.

AMOUNT IN WORDS AND FIGURE DIFFERS.

ACCOUNT CLOSED/DECEASED.

CLEARING/CROSSING STAMP REQUIRED.

CROSSED CHEQUE MUST BE PRESENTED THROUGH A BANK.

ALTERATIONS REQUIERS DRAWERS FULL SIGNATURES.

NOT DRAWN ON US.

..PAYEES
REQUIRED.

PAYMENT STOPPED BY THE DRAWER.

BANKS DISCHARGE IRREGULAR.

CHEQUE IS POST DATED/OUT OF DATE/MUTILATED.

DRAWERS SIGNATURE DIFFER/REQUIRED.

OTHERS..

ENDORESEMENT

IRREGULAR/ILLEGIBLE/

OFFICER/BRANCH STAMP
TEST AGREED STAMP:
Stamp of TEST AGREED is used to agreed on code of four digits by different banks.
Test number is used to avoid the fake advices.
Test number is placed on the advice whose amount is more than RS.25000.
Then the bank receiving that advice confirms that code;
If code is correct, then the stamp TEST AGREED OFFICER is applied on it.
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If the code is incorrect, then the bank calls the other bank (who apply the
code)

And confirms whether they issue the advice or not?

If the other bank says YES then the receiving bank asks to correct the test
number.

If the other bank says NO then it is understood that the advice is fake.

PROCEDURE OF INWARD CLEARING:

In outward clearing we receive an advice, but in inward clearing we receive the schedule
of cheques which had been came to us for clearing.
STEP#1:
We will enter the total amount of schedule of the cheques and number of cheques in the
respective module.
STEP#2:
Then we enter the cheques of inward clearing, here we enter the type of the instrument
(cheque, pay order, demand draft, etc), account number, amount of the instrument,
number of the instrument, code of the bank etc.
We have to see clearing stamp crossing stamp on front and payees account
credited on back of the cheques of inward clearing.
We have to apply the signature Verified stamp and transfer stamp of today date on
the cheques of inward clearing and outward clearing paid on the same date after there
entries in system.
NOTE: If there are two stamps of crossing then in back there should be a stamp of Our
branch endorsement confirmed. If there is no stamp like this on back of the cheque then
there must be cancellation stamp on first branch crossing.

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NOTE: When a cheque is issued in favor of a bank in inward clearing, then another
additional stamp known as Received payment for bank. Is placed on back of the
cheque.
STEP#3:
After the above procedure, we will do main entry in JV, here we,
DEBIT..STATE BANK OF PAKISTAN ACCOUNT.
CREDIT.HEAD OFFICE ACCOUNT.
Then some options appear.
For sending inward clearing we select O Originality.
For receiving outward clearing we select R Responding.
Then we do the entry of cheque returned as follows;
DEBIT.CHEQUE RETURNED CHARGES.
CREDIT.MISCELLENOUS EARNIGS
STEP#4:
The last step is we attach memo with the returned cheque and send it back to the person,
through the person sending by NIFT.

INTERCITY CLEARING:
When the cheques come directly to bank from other cities that is called INTERCITY
CLEARING. There is only the one entry of intercity clearing in JV as follows;
DEBIT.CHEQUE
CREDITS..HEAD OFFICE ACCOUNT.

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TRANSFER:
When a cheque is transfer from one account to another account of same branch or
another branch of same bank, then it is called TRANSFER OR INTER BANK
TRANSFER
Entry of the inter bank transfer will be as follows;
DEBIT.CHEQUE
CREDIT.ACCONT NUMBER WRITE ON DEPOSIT SLIP.
Inter bank transfer requires four stamps as follows;

Crossing

Transfer

Signature Verified.

Payees account credited (on back of the cheque).

INTERNAL TRANSFER:
When our any customer sends us a cheque and some names of his employees, with the
letter of request that with this (any) amount on check debited (less) my account and
credited (paid) to those employees in their accounts.
Then we do the entries in the respective persons account as we;
DEBIT.ACCOUNT OF THE CUSTOMER
CREDITACCOUNTS OF THE EMPLOYEES.
NOTE:
Do not tell the balance of any account to another person (other than the account holder)
Always tell the balance of the account to the account holder only.
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NOTE:
Place the stamp of token (on back of the cheque) on the token number.

HOW TO VIEW CUSTOMER ACCOUNT DATA?

To view the customers account data (payments and receipts) we have to enter;

Account number &

Date.

HOW TO VIEW TRANSACTIONS?

To view any transaction, you only have to enter the transaction number in respective
module. Then the transaction of today date appears, if you want to view the transaction of
2004 or 2005 then you only have to change the date on upper right corner of the screen.

HOW TO FIND OUT THE ACCOUNT NUMBER FROM

TITLE OF THE ACCOUNT?

Go to the respective module.

Enter the title of the account for whom you want to check the account number.

The system will display the different account numbers with different full names.

You have to tally the full name of the account, and then get your required account
number.

DEPOSITS OF UTILITY BILLS THROUGH CHEQUES:

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People can deposit their utility bills through cheque, but the condition is, that cheque
must be as of the same amount as of the bill.
Entry of that cheque will be done in the system in JV here we;
DEBITBILL HOLDERS ACCOUNT.
CREDITRESPECTIVE HEAD OF THE UTILITY BILL.
Stamp of the transfer will be applied on the bill, in case, when the bill is deposited
through cheque.
Stamp of the cash received will be placed on the bill, in case, when the bill is deposited
through cash payment.

DEPOSITS OF UTILITY BILLS THROUGH CASH:

When the customer deposits his utility bill through cash, then the cashier cut the bill in to
two parts by applying the cash received stamp, then the one part gave to customer and
second part held with the bank, also the cashier must enter the bar code of the bill into the
system in his respective head.
At the end of the deposit period, cashier sum up all the bills and calculate his total, then
tally the total with the total of the system. Cashier also calculates the total of the bills
manually to avoid mistakes and in order to balance his cash at the end correctly.
Then a deposit slip is prepared against the head of the utility bill (for example, LESCO,
WASA, etc) in order to deposit the cash of the bills in their account.
Then scroll of the bills are prepared and that scroll and bills receipts send to the
respective department.

How to cash cheques?

Cash cheque requires the following stamps before payment:

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COMPUTER POSTED STAMP:

When we entered these cheques in system, then we apply the computer posted stamp on
the cheque on front.

SIGNATURE VERIFIED STAMP:

This stamp is applied on the front of the cheque when we verify the signatures of the
account holder from the SSC (signature specimen card) in the system, then the cash
officer also give signature on this stamp for more verification.

TOKEN STAMP OR TOKEN NUMBER:

This stamp is applied on back of the cheque when the token is issued to the customer for
receiving payment; this stamp is used to write token number on it.

How to stop the payment of the cheque?

Whenever a customer lost his written cheque or wants to stop the payment of the cheque,
then he has to write an application to the manager of the bank, in which he has to
mention;

Account number.

Lost cheque number.

Amount of the cheque.

Date of the cheque.

The subject must be that he has lost his cheque or want to stop the payment of the cheque
whose number is mentioned above. Then the bank will give him the Performa of STOP
PAYMENT then the above mentioned information is also put in to that Performa then
the stamp of signed verified is applied on it.
After the above all procedure, the whole information is entered in to the system, in their
respective module. So, after that whenever the lost cheque comes to the bank for
payment, system will not accept it and gives message that the payment of this cheque is
stopped earlier.

TAX DEDUCTIONS:
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The tax is deducted by the bank and then sent it to the tax authorities through TAX
PAYMENT RECEIPT PERFOFMA.
Tax is deducted from the following 4 heads:

Cash withdrawal.

Profit.

Rent.

Salaries.

CASH WITHDRAWAL:
If any person withdraws amount more than RS.25000 at he same time, tax is deducted
from his account at the rate of 0.3%.
If the amount is insufficient in his account then the cash officer asks him to deposit some
amount in your account then the cheque will be cashed otherwise not.

PROFIT:
On PLS accounts profit, tax is deducted at he rate of 10%, bank have to send this tax on
profit to income tax department minimum twice in a month and maximum four times in a
month, bank have to sent it at any time in the month.

RENT:
Bank has to send tax on rent of the branch at he rate of 5% to income tax department
between 25th dates to 30th date of every month.

SALARIES:
Bank has to send tax on staff salaries on 25th date of the every month. The rate of tax in
this case changes with the amount of salary.

PENSION:
Different companies give pension to their employees through the bank. Companies send
their pensions in the bank. The pension account has no deductions. When the employee
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comes to the bank they show a card to the bank which the company gave them, then the
cash officer make entries of the pension in JV.
DEBIT PENSION ACCOUNT.
CREDIT.. PESIONARSS ACCOUNT.
Then save it and note the transaction number.
Then go to the cash account module in the system and there DEBIT the account of the
PESIONARS and gave the cash amount of the pension to the pensioner.

HOW TO ENTER THE MAILS RECEIVED IN INWARD

MAIL REGISTER?
Whenever the bank receives e-mail from any department, the printout of that email has to
attach in the INWARD MAIL REGISTER and enter the following in register:

Serial number.

Letter number.

Date of entry.

Received from.

Subject of e-mail.

HOW TO ENTER MAIL SENDED IN OUTWARD MAIL

REGISTER?
When the bank receives any mails then we have to enter in the inward mail register, but
when the bank sends mails to other departments, then we have to enter them in
OUTWARD MAIL REGISTER.

REMITTANCES
Remittances include;
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CDR (Call Deposit Receipt).

PO (Payment Order).

DD (Demand Draft).

TDR (TERM DEPOSIT RECEIPT):

CALL DEPOSIT RECEIPT (CDR):

CDR is a type of document which is used by the contractors to pay security to get
tenders.
It is prepared through cheque.
When an account holder go to the bank and ask them to make a CDR for him, with this
(any) amount the bank prepares a CDR. Then the contractor give it to the respective
person as security.
CDR is the most popular way of giving security because it contains no element of fraud
in it. The reason is that the name of payment giver and receiver both are mentioned in
CDR. Basically government needs CDR.
When the contractor wants his security back, he gets his CDR back. This benefit of CDR.

PAY ORDER (PO):

Pay order is a type of document which is prepared on a request of a customer, when he
has to pay to third party within the city.
FOR EXAMPLE:
When a customer of a bank go to the bank and asks that he has to pay to the third party a
heavy amount which is risky, then bank suggest him to make a pay order in the favor of
third party. In this pay order bank requests the bank of third party to pay the certain
amount to that party.

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DEMAND DRAFT (DD):

Demand draft is a type of document which is prepared on a request of a customer, when
he has to pay to third party out of the city.
FOR EXAMPLE:
When the customer of the bank has to pay to the third party, but the party is out of city
then the bank prepares a demand draft in favor the third party. Then this demand draft is
sent out of city to the third party, and then the third party receives payment from the bank
by giving them demand draft. Then the bank of the customer debits his account and
credits the account of the third party.

TERM DEPOSIT RECEIPT (TDR):

It is a type of account which is usually fixed; the customer cannot withdraw his amount
before the fixed period of time.
In this type of receipt profit slabs are different at different rates.

ONLINE PAYMENTS
CUSTOMER SIDE PROCEDURE:
When the payment is end by the sender which is sitting out of country, the code of 10
digits is issued to the sender by Exchange Company of foreign country. Then the sender
tell that code in Pakistan to the receiver of the payment, then receiver go to the bank, give
his ID card copy and code to the bank receives payment.

BANK SIDE PROCEDURE:

When the receiver of the payment (customer) comes to our bank and told us the code of
10 digits which he had received from sender of the payment, name of the sender, his own
name Our operational manager feeds that code in the website of the exchange company,
then the whole information, such as;

Name of the sender.

Name of the receiver.

Amount of payment send.

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Date of the payment send.

Appears in front of the manager, and then if the information is correct he takes the
printout of all the information, attach the photocopy of ID card of the receiver with it and
give him the payment.
After that manager go to the respective module, enter the code of Exchange Company,
enter the amount and respective information, and then note the transaction number.
If the code is of 16 digits then it is understood that the payment is from the UAE.
Online payments are also done between the respective branches of the banks, from one
account to another account.

DAILY POSITION:

DAILY POSITION IS THE REPORT WHICH IS PREPARED ON

THE BASIS OF STATEMENT OF AFFAIRS IN WHICH ROUTINE
TRANSACTIONS ARE MENTIONED AND WE HAVE TO SEND
THEM TO THE REGIONAL OFFICE.

STATEMENT OF AFFAIRS:
STATEMENT OF AFFAIR IS COMPUTER GENERATED REPORT WHICH IS
OBTAINED AFTER THE EXECUTION OF DAY END STEPS.

DAY END:
At the end of every working day, bank has to close the day transactions in the system. So,
at the end he has to note the number of transactions, cash on hand, date, deposits etc.
All these figures are obtained by running day end in the system in their respective
module.
Then next working day, he has to put all these figures in day start module in the system.
After this whole procedure, system will allow us to work in the next working day.
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Otherwise the system will not allow to work and asks us that we had not closed the last
working day.

HOW TO MAKE DAILY POSITON?

Statement of affairs has two portions;

Liabilities.

Assets.

We obtain figures from liabilities and assets to make daily position.

LOCAL CURRENCY DEPOSITS (Liabilities):

STEP#1:
Firstly mention the amount of current deposits, from affairs in daily position.
STEP#2:
Total of current deposits and sundry deposits amount from affair in daily position and the
formula is given below;
Demand deposit = Current deposit + Sundry deposit
STEP#3:
Put the SSA (profit plus saving account) figure in daily position from affair.
STEP#4:
Now we have to find PLS (profit and loss account) figure by using the following formula:
PLS figure = total of PLS SSA
STEP#5:
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PLS Term deposit figures (fixed deposits).

PLS term deposit below 6 months = PLS term deposit for 1 month + PLS
term deposit for 3months.

PLS term deposit for 6 months and less than 1 year = figure of six months

PLS term deposit for 1 year = PLS term deposit 1 year + corporate premium
TDRs +Munafa hi Munafa TDR scheme + BOP Bemisal TDR

(Above we write consolidated figure of 1 year of different TDRs scheme)

PLS term deposit over 1 year = for 2 years + for 3 years + for 5 years (PLs
TDR + MHM scheme)

STEP#6:
To find total deposit, formula is given below;
Total deposit = demand deposit + SSA + PLS + PLS TDR below 6 months + PLS
TDR 6 months & less than 1 year + PLS TDR 1 year + PLS TDR over 1 year.
This total should tally with the total deposit of affair.

ADVANCES (Assets):
STEP#1:
Put the figure in staff finance from affair and then in total advances.
To find out general advances we use the following formula:
General advances = total advances staff finance
STEP#2:
LIQUIDITY POSITION:
Local currency = from affair figure of cash on hand.
Total cash will remain same to local currency figure because foreign currency is 0
Formula is;
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Total cash on hand = local currency + foreign currency

It must be tally with affair.
STEP#3:
Daily data of currency submission to SBP, formula is given below;
Total notes of local currency = total cash on hand total coins of local currency
STEP#4:
Summary of other advances, formula is given below and this portion should be in
millions, means amount of advances should be divided by 10, 00,000.
Other advances = total advances (R/F + D/F + Staff finance)

Daily account opening detail also mention in daily

IMPORTANT NOTE:
THE WHOLE DAILY STATEMENT SHOULD TALLY WITH THE STATEMENT OF
AFFAIRS

LOCKERS:
The locker is a safe place provided by the bank to its account holders for keeping their
expensive and costly things in it, for example gold jewellary, important documents of
business and many more.
The banks of Punjab lockers are available in 3 different sizes. Small, medium and large
on an annual fee with one time security deposit respective to the size of the locker, which
is refundable. Only the account holders can hire a locker in the bank.

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PROCEDURE TO HIRE A LOCKER:

Locker form filled by the hirer and sign on its terms and conditions and on
lockers card.

Original ID card and its copy required with locker form.

Locker fee deducted from the account of the locker holder and credited to locker
G.L head and 5% F.E.D (federal excise duty) on its fee.

If the customer does not want that the charges deducted from his account and he
wants to pay cash, then the G.L head of the cash will debited and locker G.L head
will be credited.

Security which is twice to the lockers rent is also has some deduction procedure
and this security is refundable in the case of close of the locker.

A security receipt is to be given to customer, entering whole amount of lockers

rent, FED and security.

Annual locker rent to be recovered and before recovering annual locker rent, a
reminder is to send on customers address (one month before recovery).

Enter in locker register the name of the hirer, its locker number and key number
etc.

Whenever customer operates the locker, his attendance requires.

When a customer wants to surrender the locker, he has to submit written

application and his security receipt which is allotted him during issuing the locker.
LOCKE
R SIZE

REN
T

SECURITY

SMALL

1200

2400

MEDIU
M

1500

3000

LARGE

2500

5000
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NEW THINGS LEARNED

I learned different new things during my internship.

DIRECT CUSTOMER DEALING:

I learned how to deal the customer with different human natures. Customer is the most
important part of any organization. So, how we talk them? How we solve their different
problems.

COMMUNICATION:
In practical field, I learned a lot how to communicate with others who are your
colleagues? Who have power? Who report to whom?

TEAM WORK:
In my working environment, all the officers are working in the branch like a team. Due to
team work, work becomes easy and smooth. So, I realized that team work is very
important for BOP.

FINANCIAL SKILLS:
I got experience of different documents that are using for demand and running finance. I
learned the procedure of all types of credits and finances.

ADMINISTRATION:
Administration is integral part of any organization. It is responsible for the supervision
and operations of the organization. So, I learned that how everything is in discipline?
How employee can be motivated?

MANAGEMENT:
The management of Bank of Punjab is very hard working and always ready to face any
challenge of environment. I observed that management styles how they are taking their
decisions in hard situation?
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DESCRIPTION OF MARKETING DIVISIONS:

In the marketing division, the first and the foremost department is
LLD (LIABILITY DEVELOPMENT DEPARTMENT).
There are two General Managers appointed at the top:

General Manager (corporate)

General Manager (commercial)

Then there are two..Vice Presidents (VPs).

Then below the rank of VPs:
There are four Assistant Vice Presidents (AVPs).
The above six people help the two GENERAL MANAGERS.
Then below the rank of AVPs:
There is oneRegional Chief.
Then there are...Regional Marketing Managers.
(Place of posting of regional marketing managers are different regional offices).
Then there are...Branch Managers.

FUNCTION OF VICE PRESIDENTS AND ASSISTANT VICE

PRESIDENTS:
The function of VPs and AVPs is to develop new liability products which are
compatible with other commercial banks.
To control the cost of deposit or to monitor cost of deposit of the bank funds.
AVPs developed the products and then passes them from GMs. They should not capture
the high cost products.
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FUNCTIONS OF THE BRANCH MANAGERS:

The main duty of the branch manager is to collect deposits from different sources;
this is the main essence of marketing.

Managers are also customer friendly because they have to deal with different type
of people.

Different types of loans are given by the manager because people come to the
manager for getting loans.

All the formalities of big loans to valued customer are fulfilled by the manager of
the branch.

Managers are also staff friendly because if they are not so it is not possible to
create a good and healthy environment for work.

It is also the duty of the manager to help the internees in different matters, for
example to pursue them to work hard, learn more from the bank and not to waste
time.

HOW TO IMPROVE MARKETING DIVISIONS?

Bank of Punjab should continue to expand its business, by increasing its deposit portfolio
through aggressive market penetration strategies.
Bop needs to use more marketing channels to make the public aware of its products and
services. In the presence of intense competition Bank of Punjab has to realize the
importance of marketing.One of the most pressing needs of the time is to advertise Bank
of Punjab in the electronic media. Bop has not, till date, employed advertisement in
electronic media as full fledge marketing tool. I think it is high time that bop does this.

SWOT Analysis
Strength:
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Fundamentally sound bank

core strong customer base

Well-entrenched Brand Image

Dominant position in Indo-Gang ethic Plain No competition

A leader amongst Public Sector Banks

High proportion of customer base in deposits

Strong Risk Management Practices

Redefined processes through technology initiatives like CBS, ATM, Internet Banking

100% CBS branches.

Weaknesses:

State Ownership has affected level playing field and competitive ability

Less flexibility in dealing with strategic HR & operational issues

Imbalance in presence in less developed areas leading to high operating cost

Complacency (Structural & Environmental)

Weak & Inconsistent MIS rendering decision making difficult

Limited International presence Low NRI business

More dependence on conventional low margin business

No Income from Financial Products such as Insurance, Mutual Fund, Credit Card
etc.

Threats:

Aggressive marketing by competitor banks

Expansion of peer Banks/Private Sector Banks in Indo-Gang ethic belt eroding our
dominance
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Loss of savings business to Mutual Fund/ Insurance Products which are

aggressively marketed as being more remunerative

Technological parity of competitor banks

Aggressive strategy and innovative products, larger risk appetite of other banks.

Suggestions For Removing Weaknesses:

Internal Control

Professional Training

Delegation of Authority

DILEMMAS FACED BY THE BOP:

The following are those dilemmas faced by the bop which are very harmful for BOPs
competitive advantage and for personal improvement of the BOP:

There is very slow introduction of new services.

Most of the employees are overloaded with work. There is uneven distribution of
work and promotions are not very timely.

The computer system and the IT system of bop are not so efficient.

There is a trend of favoritism in recruitment so, unskilled people are employed.

Foreign banks are still little more prestigious.

Bank of the Punjab has less foreign network.

Less advertisement in electronic media.

It is step behind in using new technology as compared to other banks.

Disproportionate presence of old staff in the upper management hierarchy.

There is no job rotation as there is no skill set of the employees.

Size of the BOP is very small.

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All the employees at Bank of the Punjab feel discontentment when compare their
salary package with the employees of the other banks, especially the employees of
the private banks. The main reason behind this which I personally observed that
employees work very hard and their salary is much lower than their work.

Recently when establishment of private banks increased and they offered high
salary package as compared with public sector banks. Employees at bank of the
Punjab felt dissatisfaction and they moved to private banks. This high turnover
may hurt the smooth running of banks profitability and goodwill.

I personally feel that this high turnover may cause the damage to banks goodwill
and also it will be a step towards disaster.

The bop heavily relied on the one market segment that is; textile.

If Pakistani banks (especially state owned banks) backed by huge network

improves the service they give and their employee skill set.

There is inconsistency in government policies.

Image of the Pakistan, our beloved country is terrorist.

How Bank of Punjab was criminally assaulted?

By Muhammad Ahmad Noorani:
In-house investigations conducted by management of the Bank of Punjab (BoP) have
revealed that unique ways were adopted by criminals for committing the biggest financial
scandal of the recent times to deceive the banking system, including use of fake NICs,
fake company documents and fake collateral of barren and useless land situated at the
banks of rivers having no market value.A fraud of Rs 13 billion was committed in
connivance with the old management of the bank. The National Accountability Bureau
(NAB) and other concerned departments have started an investigation after The News
revealed the scandal in 2012 during the Musharrafs regime. The then Bop president
Hamesh Khan was said to be a close friend of General (retd) Pervez Musharraf. A top
NAB official confided to The News that after the NAB had started the investigations, the
presidency had attempted to influence the process and even one of the top men of the
NAB, at its headquarters in Islamabad, tried to halt the investigations. Somehow, the
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investigations continued and the case turned into the biggest financial bank scandal of the
NABs history. The officials said the NAB had recovered assets of around Rs 5 billion
from the mafia involved in this case. However, the recent developments regarding the
case are leading the case towards a situation where the mafia may succeed in getting
away with billions of rupees of poor depositors.According to BoP records, the petitioners
of the present petition being heard in the Supreme Court for shifting of the case from
Lahore High Court (LHC) to the apex court, namely Muhammad Munir,
MuhammadAfzal and Jamil, all possess more than one NIC, something confirmed to the
BoP and the NABby the NADRA. Muhammad Munir, director Haris Steel, possess two
NICs.
Petitioner Jamil also has two NICs. The NADRA has verified to the Bop and the NAB
that both the NICs possessed by Jamil bear the same photograph and signature but
different NIC numbers and addresses. The financial facility Muhammad Munir obtained
from the BoP for the companies, Haris Steel, Wisdom Trading (Pvt) Ltd, Al-Hammad
Enterprises and Better Traders was by using all fake documents. According to the BoP
officials, the last three companies were fake. On disclosure of the fraud, Muhammad
Munir managed to merge the accounts of the last three companies into the account of
Haris Steel in connivance with former BoP chief Hamesh Khan. BoP officials say that by
doing so, Munir had admitted the fraud he had committed. A top BoP official said any
superior court before hearing or making any order should first decide as to what
petitioner it was giving justice, Muhammad Munir or Muhammad Jamil. The other major
financial facility was obtained in the name of Ali Ijaz forcompanies Haider Steel, Unique
Enterprises and Lucky Enterprises. The last two companies were fake. Ali Ijaz, who
basically is an accountant in Haris Steel, also possessed multiple NICs, which he used in
committing this fraud. A total of Rs 5 billion financial facility was availed in the names of
Haris Steel and Haider Steel directly while the remaining amount of around Rs 4 billion
was all in the name of 23 fake companies. This entire amount, which now increased to
more than Rs 13 billion, was merged into the three accounts of Haris Steel, Haider Steel
and Prime Steel and the former BoP president and its former board of directors only a
few days before leaving their charge not only facilitated this merger of accounts but also
rescheduled the whole amount with no mark up. The third major financial facility was
obtained by a person of the same mafia. Waris Malik obtained financial facility for Prime
Steel and Roshan Enterprises by using fake documents. Waris also possesses multiple
NICs.
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The most important aspect of this third major facility is that the NADRA has
identified Waris Malik as Abid Raza, and that Waris never used his original name
and documents for committing this fraud.
According to the Bop officials, it was an irrefutable fact that the mafia, with the
aide, abetment and assistance of each other, committed forgery for the purpose of
cheating and obtaining huge benefits through illegal means and intentionally,
dishonestly and fraudulently caused huge financial lose to a public institution
the Bank of Punjab and in turn the public at large.This top BoP official also
made it clear that even if the BoP bears this loss, it will be a burden on the
depositors and loss of the common and poor people as they will be deprived of
many benefits that the bank might have given to them. On the other hand, the
NAB officials, while confirming the details, say the allegation of the mafia that
they had been illegally harassed by the NAB is baseless and mala fide and is an
effort to mislead the process of investigation and, in turn, to cause loss to a public
institution and to the depositors and the general public.

RECOMMENDATIONS:

I feel that bop should increased more incentives, rewards and salary package for
employees.

Management should distribute work equally among different employees. Some of

employees are overburdened while some sections are overstaffed.

The top management should immediately start thinking in terms of rotating the
employees in various departments, as this transform work force in to human
capital. If a particular person keeps on employing his or her efforts in one sphere
of banking it would not only create a sense of monotony and boredom, but also not
help improving the skill set of bop employees.

Bank of Punjab should evolve a very serious management policy to attract

multinational corporations as its clients. This action if actualized would not only
prove to be highly profit generating, but it would also contribute a lot towards
Bank of Punjabs image building.

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There are a disproportionate number of seasoned bankers in the top management

who have the responsibility if making strategic decisions. This think tang should
also include a reasonable proportion of young bankers whose mindset stem with
new creative ideas, which might prove to b invaluable for Bank of Punjab.

The number of women hired by Bank of Punjab is very less. Bank of Punjab
should employ more women. Moreover it should also recruit women for working
in credits.

Bank of Punjab should make more work teams in credits like other banks. It will
have a positive impact on the morale of the employees. Their performance will
improve as result of distribution of work and responsibility. And it will also enable
the bank to hire talented women in the credits as well.

Bank of Punjab needs to improve its website. More information relating to

financial performance of the bank should be available on the website.

CONCLUDING REMARKS:
The whole working environment of the BOP is very good, banking is basically a tough
field, and it requires a lot of attention in each and every activity.
In banking field practical knowledge is used instead of bookish knowledge. Staff is very
punctual and hardworking. All the staff working together for the benefit of the
organization, it has been my great pleasure to work with them. Every staff member is
always ready for the help of his colleague and internees.
Manager is very humble, polite and intelligent; he deals with the customers in very
professional style. Every staff member helps me and guides me whenever I need their
help. I am very thankful to manager who believes on my abilities and always guided me
for right path. As the Bank of Punjab is a commercial bank and commercial banks enjoy a
very distinctive and dominated status in the present day economy of Pakistan. BOP id one
of the most thriving commercial banks at present in Pakistan. More than 50% of its shares
are held by government of Pakistan. The organization is in the process of building itself
into a force to consider. The bank is doing all sorts of new things in order to accumulate a
set of distinctive competencies that could latter be transformed into a competitive
advantage of considerable value. In this process of developing, striving, facing, minor set
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backs motivate to strive with even more zeal. The bank enjoys strengths, needs to
improve upon some weaknesses, can exploit some opportunities and is hampered by few
threats.
The predominant strengths of Bank of Punjab are:

Humble management

Strength and commitment of sponsor

Efficiency

Phenomenal growth

Vastly experienced managemeny

Highly professional human resources

Crucial lolcation of branches

Image building activities

Bank is financially strong and has a huge deposit reserve

It cost of funds is less as compared to many of its competitors

Personnel of BOP are well trained and highly skilled. Majority of employees
has many years of experience in banking sector. They are an asset for the
banks. They are also loyal to their bank.
BOP has a wide network of branches at the ideal locations, catering the
financial needs of its clients
An important reason of our slow development is low rate of capital formation. Capital
formation refers to the increase in the stock of capital goods in an economy. No economic
development of remarkable degree is possible unless there is an ample stock of capital
flourishing in an economy. The role of commercial banks is to rove the capital deficiency
by stimulating savings and investments. BOP performs three basic functions in this
regard.
It attracts deposits by offering attractive and profitable schemes. It mobilizes and
scatters savings. It distributes these savings and makes their allocation among creative
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and productive sectors of the economy there by paving the way of a country towards
economic development.
Commercial banks are the factories that create credit. In fact the credit creating function
of a commercial bank plays an important role in the economy. To maintain high level of
economic activity credit expansion is essential. BOP makes a substantial contribution to
economic progress by making funds available for the development of infrastructure. This
not only raises the level of economic activity but also increases the speed of economic
development.
BOP helps in the process of balanced regional growth. BOP open branches over a large
area. This creates opportunity for the development of backward areas of a country. It also
helps in channeling of resources and funds from developed areas to under developed
areas.
In order to increase the pace of economic development and to meet current challenges
BOP have to frame new advanced policies. BOP in this regard should finances those
special sectors which produce direct effect on the basis economic indicators.
BOP help in the just and optimum allocation of resources. Bank lend only after observing
all necessary precautions. Mega loans are advanced only in the areas which have enough
potential and great scope of expansion.
BOP helps the central bank and other economic authorities in order to implement the
monetary policy. BOP as other Commercial banks enjoy an important and strategic
position in the financial set up and without their cooperation the monetary targets cannot
be met. Commercial banks channel the nations resources in the best national interest
seeking guidance from monetary policy given by central bank and responsible economic
authorities.
BOP help in the growth of new enterprises by providing funds and finances for their
development. This also helps in competing with technological advancements and
expansion of economy. Apart from this they provide finance to able entrepreneurs to take
risks and perform new experiments in the field of business and profession.
Commercial banks act as a factory that creates and distribute money. BOP channel
finances towards creative uses. It, as required by the circumstances, increase or decrease
the supply of money in an economy to attain macro economic stability and growth.
BOP helps in the expansion of trade and commerce .it help in the formation of sound
economic infrastructure in order to raise living standard and to expand trade and
commerce of an economy.
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A major problem of third world countries is foreign debts and dependence in other
countries. BOP provides incentive for the entrepreneurs to take risks and to use idle
resources for more and better production. This leads to outwards shifting of production
possibility frontier and helps in the process of attaining self sufficiency.
BOP helps in the growth and development of right type of industries which are directly
related with raising the living standard of local people. Also environment friendly
industries are encouraged.
BOP does sometimes provide finances for research and development institutions.
Writing this internship report was an evenly memorable experience as doing the
internship. I honestly try my level best to come up with an original piece of writing. I
truly hope that this report also certifies the fact all of my respectable teachers performed
their duty of academic guidance and moral mentoring with utmost efficiency and
effectiveness.

References

Annual Reports of bank of Punjab

News letter of BOP

Employees

http://www.bop.com.pk/

Personal observation

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Sources

http://www.bop.com.pk

www.google.com

Annual report

Personal observation

www.investopedia .com

http://www.sbp.com.pk/

http://www.wikipedia.org/

http://www.ibp.org.pk

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MAY ALLAH SHOWER HIS COUNTLESS BLESSINGS ON ENTIRE STAFF AND

THE WHOLE MANAGEMENT OF BANK AND INSTITUTE OF BUSINESS AND
INFORMATION TECHNOLOGY

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