Bank Of Khyber

Internship Report
ACKNOWLEDGMENT

We have no words to express our

gratitude to Almighty Allah, the most
Merciful and Compassionate, the
most Gracious and Beneficent, who
enabled us to complete this study.
This gratitude would remain
incomplete without paying Darood-o-
salam on the Rahmat-Ulil-Alamin
Hazrat Muhammad Mustafa (Peace be
upon him).

We extend our deepest gratitude and

profound regards to our advisor Mr.
Wisal Hassan and other teachers for
constant supervision, inspiring
guidance, valuable suggestions and
constructive criticism throughout the
course of this study. We are also
thankful to him for his moral support.

I am very thankful to my parents and

family members and my friends.

APPROVAL SHEET

Project Report

On
THE BANK OF KHYBER

Submitted By:

Name

MBA (FINANCE)

Roll no: 0000

Reg. No: _____________

OF

College Name

has been approved for submission to

the controller of Examinations,
University of Peshawar in partial
fulfillment of the requirements for the
degree of

MASTER OF BUSINESS
ADMINISTRATION

__________________
___________________

Date: ______________ Date:

______________

DEDICATED TO

I dedicate this humble

effort to my honorable parents

Especially to my sweet and loving

Mother who always prayed for

My success and supported me

Spiritually and financially

In Every stages of life,

My friends & teachers.

PREFACE
The Bank Of Khyber (BOK)
established in 1991, under the bank of
Khyber passed by KPK assembly. Its
objectives included promotion of
saving and investment in the KPK .In
1994 it acquired the status of a
scheduled bank that allowed at
opening branches outside the KPK
,becoming a member of clearing
house and engaged in trade finance
activities directly.

Doing this project has been an

enjoyable experience. Keeping pace
with time is the key to success, left
behind means lost. This report is an
essence of my degree requirement
and without writing report the whole
training process will end in smoke.
Computation and purification of data
become fruitful when it comes in the
shape of information. It is very hard to
convert data into information, it
requires wide span of time, but still it
was a great experience for me to have
a feel of the practical world.

My project on Bank Of Khyber branch

university road was a good
experience. I have learned a lot about
general banking, observed the
organization structure and different
departments and also their working. I
want to thank every one at the bank
who helped me to understand about
basic banking and also made my
internship at the bank a memorable
experience.

Since banking is a wide spread

profession, it is impossible to jot out
each and every function, so I
highlighted few functions of banking.
Being the student of Finance I tried
my level best to decimate as much
information as which was necessary.

I will like to thank all the staff of

BOK's university road branch,
especially Mr Zahir Shah (Manager)
for his support and guidance in cash
department who treated me with care
and answered all my quarries.

I also want to thanks all staff of BOK's

university road branch for there
Sports who guided me throughout
making of this report. Without their
valuable guidance it would have been
a much difficult task to do. In the end
I would also like to thank my parents
and friends who supported me
throughout my program.

SAYED ABAD

TABLE OF CONTENTS

Topic Page No.

CHAPTER 1:

INTRODUCTION TO REPROT: 1

1.1……..Objectives of study 1

1.2 ………Scope Of Study 1

1.3…………Importance Of study 1

1.4………….Research Methodology 2

1.5………..Background Of Study 2

1.6…………Purpose Of Study 3

1.7………..Problem Statement 3

1.8………….Methodology Of Report 4

Chapter 2

2.1………....History OF BOK 5

2.2…………….Vision Statement 6

2.3…………..Function Of BOK 7

Chapter 3

DEPARMENTAION: 10

3.1……..Departmentation of the
head office 11

Chapter 4

4.1……….IMPORTANCE OF
FINANCIAL PRODUCTS 18

AND SERVICES OF BOK:

4.2 ……………BOK Performance At

Glance 22

Chapter 5

BOK’S CREDITS/FINANCING 23

5.1………… Introduction 23

5.2…………Principles of Financing 23

5.3………..Types of Credits 25

5.4…………Types of Advances
Offered By BOK 26

5.5……….Procedure Of Applying For

Finance 32

5.6………..Market Appraisal
/commercial Finance 35

CHAPTER 6

“DEPOSITS” 39

6.1………..Introduction 39

6.2…………Deposits /Products By
BOK 39

6.3………..Account Opening
Procedure 42

6.4………Nature Of Account 43

CHAPTER 7

CRITICAL ANALYSIS 47

7.1……….Problem At the Branch 47

7.2 ………Functional Analysis 48

7.3……….Administrative Analysis 50

7.4……….Personnel Mgt Analysis 51

CHAPTER 8

FINANCIAL ANALYSIS 53-56

CHAPTER 9

SWOT ANALYSIS 57

9.1………Strength Of BOK Haripur

57

9.2………weaknesses of BOK
Haripur 57

9.3……….Opportunities Of BOK
Haripur 58

9.4………..Threats of BOK Haripur

59

CHAPTER 10

RECOMMENDATION & FINDING 60

10.1 ………Availability of Required

Staff 60

10.2……….Computerization of
Branch 60

10.3…………..Inter Departmental
Transfer 61

10.4…………..Customer Friendly
Environment 61

10.5………….Professional Attitude 62

10.6………….Personal Marketing 62

10.7…………Equal Distribution Of
Work Load 62

10.8………..ATM Facility 63

10.9………..Delegation Of Authority
63

10.10…………Role Of Presentation 63

10.11…………..Compensation 64

10.12 …………Consumer Satisfaction

64

10.13 …………Recommendation to
HRM 64

BIBLIOGRAPHY 67

EXECUTIVE SUMMARY
Bankers mean a person transacting
the business of accepting money for
the purpose Of lending or investment,
of deposits of money from the public,
repayable on demand or other wise
and withdraw able by cheques, drafts
or otherwise and includes any Post
Office Saving banks. Bank play with
the money of other peoples by taking
money from people at lower interest
rate and lending it to investors at a
higher rate of interest and the
difference between these two interest
rates are the bank profit.

Bank Of Khyber maintains its position

as Pakistan's premier bank
determined to set higher standards of
achievements. It is the major business
partner for the Government of
Pakistan with special emphasis on
fostering Pakistan's economic growth
through aggressive and balanced
lending policies, technologically
oriented products and services
offered through its large network of
branches locally, internationally and
representative offices.

The purpose of this report is to

analyze the performance activities of
The Bank of Khyber university road
branch and BOK overall performance
and its financial position and
organizational structure as well.
According to my knowledge BOK
chain of command is chairman of
BOK is the upper most position and
there are many directors under that
chairman then chief executive then
five senior executive vice president
and this hierarchy is going to end at
non clerical staff.

In this report we analyze different

departments of Bank Of Khyber
including Cash department, Accounts
opening department, Clearance
department, Advances / Credit
department, Remittance department,
Foreign Exchange department and
after analyzing these department we
have certain findings and
recommendation for that.

INTRODUCTION TO STUDY
“BOK’s

Chapter-1

1.1 Objective of the study

For completing the Master degree of

MBA, each student is required to
make a project report on a recognized
organization. The students are
required to work according to their
own field in which they are doing
their specialization.

Main purpose of this program is to

make students familiar with the
practical work, as there is great
difference between what they have
learnt during their course and how
the job is practically done.

Another important aspect of making a

project report is to implement the
knowledge so far one has acquired.

1.2 Scope of the study

1). It is a compulsory requirement for

the award of Master degree.

2). It will help the present and

prospective students of the
department in making assignments
and writing reports on the BOK,
evolution of banking, importance of
banking and different operations.

3). It can also provide help to BOK’s

management in identifying their
Strengths, Weaknesses, Opportunities
and Threats.

4). It can also provide assistance to

students about the banking system
and is management practices.

1.3 Importance of study

Banks play a central and very

important role in the economic life of
a country, that’s why they are
considered as the lifeblood of modern
economy. Today no one can deny the
importance of banking in the
economy. They facilitate and expedite
trade and commerce and provide a
variety of services that one can’t
imagine with out banks.

We have chosen the Bank Of Khyber

for our mini project because it has all
the departments a bank could have
and is the largest network nationwide.

Besides this, BOK plays an important

role in the economic development of
Pakistan.

1.4 Research methodology

The methodology that we adopted for

this research project is based on both
the primary as well as secondary data.
The sources of primary data were:

1 Formally arranged interview/

discussions with Management,
Director and Joint Directors.

2 Personal observations.

3 The sources of secondary data were;

4 Annual reports

5 Over view of the BOK

6 Relevant books.

7 Internet

1.5 BACKGROUND Of Study:

The socio economic growth of any

developing country depends mainly
on the health of its monetary based
institutions. The banking sector is one
such example, which plays a vital role
in the development of the economy.
Its involvement in the industrial
sector, trade and commerce of the
country makes it an integral organ of
the over all development of the
county.

Bank Of Khyber was established

under the ordinance 1949. The
primary objective of the setting of
BOK was the purchase of jute from
the growers in the former East
Pakistan and also to perform the
commercial banking

The bank is also authorized to act as

an agent and trustee of State bank
where the State bank of Pakistan
(SBP) has no branches. The bank
therefore performs dual responsibility,
one as commercial bank in its own
right and at the same time a trustee of
business finance.

1.6 Purpose of Study:

The purpose of this study is to fulfill

an important requirement of MBA
course that is to write an internship
report. The main focus of this study is
on retail banking.

Apart from this there are other

purposes such as:

a) To get practical knowledge about

the working of the bank, i.e. the
procedures followed for the retail
banking.

b) To get used to the working

conditions of an organization.

c) To analyze the weaknesses of the

said organization and give some
solutions to overcome these
weaknesses.

d) To have a working experience.

1.7 PROBLEM STATEMENT:

The following problems are in the

university road branch of BOK are as
under.

a)The ATM Machine facility are not

used in this branch.

b)The proper space is not for the bank

.The seating arrangement is not
sufficient as compared to the number
of employees and customers.

c)The bank hires new employees from

the external sources. in case where
the Bank has competent and
experienced officers the vacancies are
filled with internal employees. There
are certain posts in the Bank for
which internal as well as external
recruitment sources are used.