The Bank Of Punjab

Gujrat
INTERNSHIP REPORT

Internship report
ON
THE BANK OF PUNJAB
Internship report submitted to faculty of Management&
Administrative science in partial fulfillment of Requirement for
Degree of Masters of Business Administration

Program & Session M.B.A (Finance) 3.5years

University of Gujrat
Date: 15/09/2013

The Bank Of Punjab

Gujrat
INTERNSHIP REPORT

ACKNOWLEDGEMENT
I dedicated this report to my parents. Because of their prayers & encouragement I have been
able to complete this report. ALLAH is great and compassionate.. We submit to Allah, all
our effort before the Almighty. We offer a humble thanks to the most benevolent that made us
capable of completing this project well in time.
This is ritual of Department of commerce to conduct internship for it graduate in summer
vacation. The credit of this term goes to the esteem faculty of this Department, who gave a
chance to their students to work in an organization beside their theoretical background to
build a practical knowledge. For this, I am highly thankful to all the members of faculty and
Sir Qasim Raza for guiding me in preparing my internship report.
I would also like to have a word of thank to the people of BOP Ramtalai Road Branch Gujrat,
who shared their knowledge and experience with me in order to complete my period of
internship there I my special thanks to Mr. Qasim Raza, who accepted my internship proposal
and give me a chance to work in branch.
Last but b not least, my parents, who are in continuous phase of brining me up and in every
respect of my life by providing their moral help and resources.

Executive Summary
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The Bank Of Punjab

Gujrat
INTERNSHIP REPORT

Internship is an important part of MBA program and provides opportunity to all students to
learn about the partial working of organization and improves their personal skills, Business
problems are becoming more complex with the passage of time due to the achievement in
world. Students really get many benefits through this practical knowledge during studies.
This internship is not only helpful for making this report but this education gives a general
knowledge about the business, decisions and policies. In this way I personally feel that your
mind start thinking innovatively, broadly and dynamically. Facing challenges of day to day
life is not a difficult task to handle for individual. Internship training at the bank of Punjab is
aimed at providing the students a major unique opportunity to learn what bank is all about.
I try my level best to produce a most comprehensive internship report to bank of Punjab by
compiling all Practical learning in a systematic way, hence making report unique. All
informations this effort and my interest in internship can evaluate me in true prospective.

Contents:
Introduction --------------------------------------------------------------------------------------- 7
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The Bank Of Punjab

Gujrat
INTERNSHIP REPORT

Purpose-----------------------------------------------------------------------------------------------7
Background study-----------------------------------------------------------------------------------7
Organization ----------------------------------------------------------------------------------------7
Methodology ----------------------------------------------------------------------------------------7
Summary --------------------------------------------------------------------------------------------7
Banking history -----------------------------------------------------------------------------------8
Banking Act-----------------------------------------------------------------------------------------8
Banking evolution in Pakistan -------------------------------------------------------------------8
Privatization ----------------------------------------------------------------------------------------8

Organization
Introduction----------------------------------------------------------------------------------------8
Nature of Business -------------------------------------------------------------------------------9
Mission Statement --------------------------------------------------------------------------------9
Vision Statement ----------------------------------------------------------------------------------9
Core values ----------------------------------------------------------------------------------------9
Branch Introduction --------------------------------------------------------------------------10-16
Supervisors --------------------------------------------------------------------------------------- 10
Professional Training ----------------------------------------------------------------------------16
Credit card Facility -------------------------------------------------------------------------------16
Staff Relation --------------------------------------------------------------------------------------16
Relationship of Head office to Branch office -------------------------------------------------16

Banking Sector of Pakistan------------------------------------------------------------16-19

Role of BOP in Pakistan --------------------------------------------------------------------------19
Awards and Achievements ----------------------------------------------------------------------20
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The Bank Of Punjab

Gujrat
INTERNSHIP REPORT

Excellence Award by the Central board of Revenue-------------------------------------------20

3rdkissan time Awards -----------------------------------------------------------------------------20
Best corporate report award -----------------------------------------------------------------------20
16thBollan Excellence Award --------------------------------------------------------------------20
Achievement Award--------------------------------------------------------------------------------20
How to open account ----------------------------------------------------------------------------21
Documents to be attached------------------------------------------------------------------------22
Specimen Signature Card -------------------------------------------------------------------------22
Issuance of Cheaque book------------------------------------------------------------------------22
Closing account-------------------------------------------------------------------23
Dormant account------------------------------------------------------------------23
Activation of a dormant account------------------------------------------------23

Regional offices and branches--------------------------------------------------23

Current staff---------------------------------------------------------------------- 24
Current staff according to qualification and experience----------------------24
Salary structure-----------------------------------------------------------------24
Promotion system------------------------------------------------------------------------------------ 25
Incentives and motivation---------------------------------------------------------------------------25
Critical analysis of branch-------------------------------------------------------------------------- 25
Communication--------------------------------------------------------------------------------------26
Recruitment of the staff-----------------------------------------------------------------------------26
Short listing of the application --------------------------------------------------------------------26
Tests---------------------------------------------------------------------------------------------------26
Interviews---------------------------------------------------------------------------------------------26
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The Bank Of Punjab

Gujrat
INTERNSHIP REPORT

Morale of the employees----------------------------------------------------------------------------27

Physical facilities-------------------------------------------------------------------------------------27
Performance ------------------------------------------------------------------------------------------27

General banking -------------------------------------------------------------------28-30

Services of bop-------------------------------------------------------------------------30
ATM-----------------------------------------------------------------------------------------------------30
Pay order online banking------------------------------------------------------------------------------31

SWOT analysis -------------------------------------------------------------------------33

Organization structure -----------------------------------------------------------------34
Board of director---------------------------------------------------------------------- 35
Bop head office----------------------------------------------------------------------------------------- 37
Branches-------------------------------------------------------------------------------------------------40
Introduction to Departments----------------------------------------------------------------------- 40-43

Porter model----------------------------------------------------------------------------44
Recommendation ----------------------------------------------------------------------48
Conclusion ------------------------------------------------------------------------------50
Abbreviation---------------------------------------------------------------------------- 50
References -------------------------------------------------------------------------------51

Introduction
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The Bank Of Punjab

Gujrat
INTERNSHIP REPORT

Background of study
In the University of Gujrat required for the students to do an internship for at least six week
period of six weeks period of time in any business organization. So for my internship reports
I choose the bank of Punjab Ramtalai campus in my district. The bank of Punjab is very
emerging bank in our city and it will be good for me to gain some practical knowledge in that
kind of field of life.
Purpose
The purpose of this internship report is to learn the organization skill. When you are doing
internship in an organization, you will learn different kind of skills like accounting, reporting,
communication and managerial skills. So on six week period the purpose will be to enhance
the level of learning in business organization.
Organization
The bank of Punjab is becoming one of the most emerging banks. BOP introducing a lot of
new schemes to their customers and also it will a good experience for to choose the BOP,
because some of friends did their internship in this bank they find it very good for learning.
Research Methodology
There are two ways to collect the data

Primary data
Secondary data

Primary data based on the observation, knowledge gathered from questionnaires and
interviews.
Secondary data contains material with the help of internet articles and with courtesy of
the employees of BOP.
Summary
I am student of UOG and doing MBA and my specification is in finance. As our
university required doing internship in any Organization for the practical knowledge, I
choose the BOP ramtalai branch of the internship of six weeks. The objective of my
internship is to enhance my professional managerial skills in that field and also enter in
practical life.
Banking History of Pakistan

The Bank Of Punjab

Gujrat
INTERNSHIP REPORT

Banking Evolution in Pakistan

Our banking history starts with the establishment of the state bank of Pakistan in 1948, at that
particular time the domestics banks was limited .the aim for state bank of Pakistan is to
develop the commercial banking system in Pakistan and make proper channel for financial
resources so according to that agenda the bank establishes like national bank, Allied bank and
Habib bank.
Nationalization Act
Commercial banking was at peak in the late sixties and early seventies until the time our
Government declared the nationalization policy in 1974 with the policy thirteen banks were
taken into the possession of Government and then merged into six banks.

Privatizations
In 1991, the nationalization act was ended and then again 23 banks were established, Muslim
commercial bank was privatized in 1991 and the management of Allied bank of Pakistan took
most of ownership. After that many banks established and by the end of 1997 there were 21
domestic banks and 27 foreign banks.
Organization

Introduction
The bank of Punjab was created under the bank of Punjab act 1989 in the 16 November,
1889. The bank of Punjab established its first branch in Lahore. It was mended as non
scheduled bank in the Punjab province. Because it was government support bank the main
customer of the bank were the Government employees. But with the passage of time they
increase their target market, so in 1994 the bank of Punjab converted into schedule bank and
then they opened branches all over the Pakistan. Today they have 280 branches all over the
country. 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 Punjab plays a vital role in
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The Bank Of Punjab

Gujrat
INTERNSHIP REPORT

the national economy through mobilization of local resources, promoting saving and
providing funds for investment. The bank of Punjab offers attractive rates of profit on all
depo---sits, oing of foreign currency accounts and handling of foreign exchange business for
example imports, exports and remittance, financing trade and industry for working capital
requirements and money market operation.
Nature of business
One of the most important businesses in the world is banking. In our country banks plays
vital role in the national economy. Banks are like backbone of our country they provide
money for different sectors of economy keeping our economy progress. They provide finance
to the agriculture sectors which is vital to our economy so they are mobilizing our resources
indirectly or directly.
Mission Statement
To exceed the expectations of our stakeholders by leveraging our relationship with the
government of Punjab and delivering a complete range of professional solutions with a focus
on program driven products and services in the agriculture and middle tire markets through a
motivated team.
Vision Statement
To be a customer focused bank with service excellence.
Source: http://www.bop.com.pk/
Core Values

Our customers are our first priority.

Profitability for the prosperity of our stake holders that allow as to constantly
investing, improve and succeed.
Corporate social responsibility is to enrich the lives of community where we operate.
Recognition and Reward is for the talented and performing employees Excellence in
everything we do.
Integrity is in all our dealing.
Respect for our customer and each.

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

Branch introduction
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The Bank Of Punjab

Gujrat
INTERNSHIP REPORT

Total number of employees in Ramtalai Road branch is seven. The branch was handled
branch manager Mr.fasial. The flow chart of responsibilities and designation are shown in
management hierarchy.

Branch
Manger

Operation
Manger

Credit

Remittan
ces

Advanc
es

Short Term
Loans

Mortgage
Loans

Foreign
trade

Account
Opening

Import

Export

The top most authority in a branch is the branch manger the rest of staff comes under his
span of control. Then comes the operational manager then operational grade 1, operational
grade 2, operational grade 3 and then clerical staff like cash officer junior cash officer.
The hierarchy according to the responsibilities performed is also classified as follows. The
services in bank of Punjab are classified in different categories.

Category A

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Category B

Category C

Category D
Non-Clerical

The Bank Of Punjab

Gujrat
INTERNSHIP REPORT

President

Executive vice
president (EVP)
Senior vice
president (AVP)
Vice President (VP)
Assistant vice
president (AVP)

Officer Grade I

Clerical
Staff

Staff

Officer Grade II

..

Driver

Officer Grade
III
Cash Officer

Guards

Gate
Keepers

..................

Tea Boys

.
.

Supervisors
I did my internship in BOP ramtalai branch. The supervisor has been assigned to me is Mr.
Qasim. When I started my internship in bank they provided me full support.

Faisal
Branch Manager
Layaqat Ali
Operating Manager
Miss Anila
Account Opening Officer
Mr. Qasim Ali Raza Foreign account opening officer
2 Casher Officer

Weekly Timetable:
Weekly details of my internship according to date and day are as under: through the
strategies. The board guidelines laid down by the SBP are strictly followed by BOP.

1st Week:
1st Week

Remittances
Date
22.7.2012
23.6.2012
24.6.2012
25.6.2012

Day
Monday
Tuesday
Wednesday
Thursday

26.6.2012

Friday

11

Department:
Internship Activity
Introduction of Remittance
Western Union, Foreign Remittance
Foreign exchange dealings
Cash Deposits Receipts, Cheque
Deposits Receipts
Data Recorded for Internship Report

The Bank Of Punjab

Gujrat
INTERNSHIP REPORT

2nd Week:
2nd Week
Date
29.07.2012
30.7.2012
31.7.2012
1.8.2012
2.8.2012

Department: Operations
Day
Monday
Tuesday
Wednesday
Thursday
Friday

Internship Activity
Introduction of Operations
Supervision of clearing
Online Transfer of Funds
Demand Draft, Cashier Cheque
Data Recorded for Internship
Report

3rd Week:
3rd Week
Date
19.8.2012
20.8.2012
21.8.2012
22.8.2012

Department: Operations
Day
Monday
Tuesday
Wednesday
Thursday

Internship Activity
Check deposits
Inter City Clearing, Outward Clearing
Inward Clearing, Outward Clearing
Data Recorded for Internship Report

4th Week:
4th Week
Date
23.8.2012
26.8.2012

Department: Cash
Day
Friday
Monday

Internship Activity
Checque collection, verification & payments
Data recorded for internship Report

5th Week:
5th Week
Date
26.8.2013
27.8.2013
28.8.2013
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Department: Cash
Day
Monday
Tuesday
Wednesday

Internship Activity
Cash received, cash payments & management
Order objection, voucher & ATM problems
Foreign remittance payments and deposit
receipts

The Bank Of Punjab

Gujrat
INTERNSHIP REPORT

29.8.2013

Thursday

Data recorded for internship report

6th Week:
6th Week
30.8.2013
2.9.2013
3.9.2013
4.9.2013
5.9.2013

Department: Account
Friday
Monday
Tuesday
Wednesday
Thursday

6.9.2013

Friday

Internship Activity
Account Opening Procedure
account types and risky account opening
Foreign Accounts filled
Minor account opening forms filled &
stamped
Data recorded for internship report

Details of Departments of Internship

During my internship I have been working in following departments, which are, operations
Department, cash Department, remittance Department, Clearing Department and sales
Department. Details of these departments along with activities being carried out there are as
under:
Operations Department
In Operation Department, activities are requiring nature are handled. Operation manager are
handle all quires and problems of customer of branches and Employees as well. Activities of
operation Department are as under:

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Cash Deposits
Chaque payments
Chaque Deposits
Supervision of clearing
Online transfer of funds
Demand Draft

The Bank Of Punjab

Gujrat
INTERNSHIP REPORT

Cashier chaque

Account Department
In account Department, activities of different account opening and verification are handled.

Risky account
Foreign account
Minor account

Remittances Department
In remittance Department, matters of transfer of cash from foreign countries and other banks
are handled, bill for collection are also handled. Main activities of this Department are as
under:

Bill for collection

Inward Bill for collection
Outward Bill for collection
Western Union
Aftaab exchange
Lulo exchange
Easy paisa
Habib express
Express money
Remittance Inward
Remittance outward

Clearing Department
In clearing Departments check drawn on POB by others banks are handled. Core activities
are this Department is:

Outward clearing
Inward clearing

Cash Department
In cash Department, dealing of cash received and cash payment is handled . cash recieots are
in the form of deposits in account, Demand draft , transfer commission and other instruments
that can be sold in the market. Main activities of cash Department are:

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Cash receipts
Cash payments

The Bank Of Punjab

Gujrat
INTERNSHIP REPORT

Cash management
Handling of fresh cash

Summary of learning

During my internship I have learned a lot,I have learned;

How handle customers
How to attract new customers (marketing strategies &schemes)
How to works professionally
How to solve problems of customers in bank and provide them gaudiness in
problems
How to open account

Kinds of Responsibilities Undertaken During Internship:

Following responsibilities I have undertaken during my internship:
Responsibilities of sending cheques through clearing
Responsibilities of sending new accounts to Head Office
Responsibilities of Accounts opening and verification
Responsibilities of cash management.
Responsibilities of Foreign account managements and dealings.
Working in different departments
During my internship I observed that other internees in the bank use to stick with one
department only. An internee with specialization in Finance was of the view that he should be
in Finance department same was the case with other specialized internees .But I would
suggest that one must works in department for some time to gain a hand on experience of all
the departments. As in real working environment employee have to coordinate with other
departments, so he/she must know what the other Departments operations are how they work.
Correlation of internship Activities with classroom knowledge
I have observed during my internship that classroom knowledge and internship Activities are
correlated positively somehow.
Professional Training
Seriously the staff is needs some professional training. the methods are not up dated they are
using old method to do their jobs. They do not bring change and want to do same routine
work. So for that purpose BOP should provide training facilities to its employees.
Credit card facility
Currently there was no credit card facility in our bank. So efforts must be made by
introducing credit card facility at our branch.
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The Bank Of Punjab

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INTERNSHIP REPORT

Staff Relations
During my internship I witnessed that staff relation were not up to the mark. Most of the
employees behavior was not good to each other. So it my suggestion to the employees to
build the strong professional relationship. Respect in our customer and each other.
Relationship of head office to the branch office:
The relationship of head office to the branch office is also termed as the management
hierarchy. There is a certain method of communication between head office and branch
office. If head office want communicate with the regional office, the regional office will
communicate with the area branch office and then the area branch office will finally
communicate with branch office.
Head office

regional office

area branchbranch office

Banking sector of Pakistan

Bank play very important role in the economy of a country and Pakistan is no exemption.
Banks in Pakistan account for 95% of the financial sector. Pakistan has a well developed
banking system, which consist of a wide variety of institutions ranging from central banks to
commercial banks and to specialized agencies to cater for special requirements of specific
sectors.
Pakistan came in to being on 14th August, 1947 sufficient banking services were available in
the areas forming Pakistan. Out of the total branches of the nearly 3500 in the undivided
India, as many as about 1500 branches were existing in these areas.
It was agreed between the two countries that reserve bank of India shall continue to function
in Pakistan territory until 30th September 1948 and that Indian notes would continue to be
legal tender at Pakistan until 30th September 1948. Unfortunately, relationship between two
countries becomes most strained immediately after independence. Banking was mostly in
lands of Hindus who immediately started transferring their offices and assets into India. As a
result most of banks in Pakistan were closed down and even those which were open were not
doing any effective business.
The number of banking office in Pakistan came down to about 200 on 30 th June 1948.
Branches of some European banks were also functioning in a limited manner, financing in
export of crops, and their number was limited to about 20.
It was only the Habib bank which transferred its office from Bombay to Karachi Austral Asia
bank was into another bank, which was in existence in Pakistan territory at the time of
independence. Despite of best efforts on the part of government of Pakistan, no heavy way
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Gujrat
INTERNSHIP REPORT

could be made on this behalf and reserve bank of India was in no mood to help the new
country. Imperial bank of India, agent of reserve bank of India also started closing down its
branches in Pakistan.
Reserve bank also refused to advance money to Pakistan to make essential payments such as
salaries etc, also Pakistans share of Rs. 75 Billion in cash balance was with the held by bank,
causing hardship to the newly born state. In view of these hopeless state affairs it was agreed
between the two countries that reserve bank would serve as monetary authority in Pakistan
only up to 30th June 1948. The era of 90s was the climax of privatization, Deregulation and
restructuring in the domestic banking industry and financial institutions, the Government only
owns the national bank but 80% of the bank assets are in private sector. Banking assets arose
three-folds over the last five years and industry size is reaching Rs 4 trillion. The contribution
of banking sector to GDP ratio is 55.6%. Pakistan has been ranked 2 nd in performance and
efficiency indicators among the south Asian countries by the World Bank. There are 68
scheduled banks of which the top five have 50% of market share. Banking industry in
Pakistan is currently under a wave of Mergers and Acquistions.

Government owned banks

Privatized Banks:

ZaraiTaraqiati Bank Limited

Allied Bank Limited

Industrial Development Bank of

Pakistan

Habib Bank Limited

First Women Bank Limited

MCB Bank Limited

Khushhali Bank Limited

United Bank Limited

National Bank of Pakistan

Development financial
institution

The Bank of Khyber

Pak Oman Investment Company

Limited

SME Bank Limited

House Building Finance

Corporation

The Bank of Punjab

National Investment Trust Limited

The Punjab Provincial

Cooperative Bank Limited

Pak Brunei Investment Company

Limited

Private banks

Pak Iran Joint Investment

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The Bank Of Punjab

Gujrat
INTERNSHIP REPORT

Company Limited
Bank AL Habib Limited

Pak Kuwait Investment Company

Meezan Bank Limited

Pak Libya Holding Company

(Pvt.) Limited

KASB Bank Limited

Foreign Banks:

Habib Metropolitan Bank Limited

Oman International Bank

S.O.A.G., Pakistan

Faysal Bank Limited

HSBC Bank Middle East Limited,

Pakistan

Emirates Global Islamic Bank

Limited

Citibank N.A., Pakistan

Dubai Islamic Bank Pakistan

Limited

Deutsche Bank AG, Pakistan

Dawood Islamic Bank Limited

Private banks and development

institution

ArifHabib Bank Limited

Bank of Tokyo Mitsubishi UFJ

Limited, Pakistan

Barclays Bank PLC, Pakistan

Rozgar Micro Finance Bank

Limited

Askari Bank Limited

Tameer Micro Finance Bank

Limited

Atlas Bank Limited

Pak Oman Microfinance Bank

Limited

Bank Alfalah Limited

Pak-China Investment Company

Limited

NIB Bank Limited

Pak-China Investment Company

Limited

The Royal Bank of Scotland

Network Micro Finance Bank

Limited

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The Bank Of Punjab

Gujrat
INTERNSHIP REPORT

Standard Chartered Bank

(Pakistan) Limited

KASHF Microfinance Bank

Limited

Silkbank Limited Formerly Saudi

Pak Commercial Bank Limited

Soneri Bank Limited

mybank Limited

Samba Bank Limited Formerly

Crescent Commercial Bank
Limited

Role of BOP in Pakistan:

BOP creating employment opportunities by increasing its number of branches and
extending its reach to for off areas of Punjab.
BOP is playing very positive role in the economy by mobilizing the resources and
channelizing the fund.
Agriculture is the backbone of our countrys economy. BOP is faciliting the
agriculture sector by providing a number Kisan dost scheme which are helping the
lower and middle class of our villagers.
BOP is committed to provide excellent services to the customer at very reasonable
cost.
BOP is playing a critical role in increasing the GDP.
BOP is providing different types of loans to the industrial sectors which are also
helping the countrys output to increase.
The foreign exchange trade department is functioning very efficiently which is
facilitating the businesses to import and export the merchandise.
BOP financing the ideas of female Entrepreneur which is producing fruitful
results.
The BOP is also providing loans to the mille class people by providing loans to
the People for their shops and offices.
Awards and Achievements
Excellence Award by the central board of Revenue
The central board of Revenue presented Excellence Award to the bank of Punjab in
recognitions of contribution made by the bank toward Government Exchequre.
3rd Kissan Time Awards

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The Bank Of Punjab

Gujrat
INTERNSHIP REPORT

In Recognition of banks contribution in development and growth of agricultural sectors, the

bank honored with the bank of agriculture Loans and Best bank of crop insurance under 3rd
kissan time Awards year 2006.
Best Corporate Report Award
Annual Report of bank for the year 2005 won 5th position for the best corporate repot
Award for the financial sector, adjusticated jointly by the institute of chartered Account of
Pakistan and the Institute of cost and management Account of Pakistan.
16th Bolan Excellence Award
The bank was awarded best bank Award under 15th Bloan Excellence awards distribute in
2006.
Achievement Award
The Lahore chamber of commerce & industry (LCCI) awarded the bank LCCI achievement
Award 2006.
How to open Account
When a customer wants to open a/c. he comes in this Department of bank, and submits an
application for opening an a/c. the officer of this department gives him an application form.
The application form is useful for all account opening e.g. PLS CD etc. the requirements of
application form are this information which bank wants to know. Following are in the bank:

Types of accounts
Individual Account
Proprietorship
Joint Account
Partnership/Firms
Club, Society, Association of Persons Trust
Limited Company

Necessary information, which a bank requires

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The Bank Of Punjab

Gujrat
INTERNSHIP REPORT

Name

Operating Instructions

Address

Introducer

Telephone #

Country of residence

Zakat Deduction

Nature of Business

Signature of the Applicant

Details of other Banks

Accounts

Account (local or foreign

currency)
Special Instruction Regarding
the Account

Document to be attached

Attested photo copy of NIC/passport of account holder, proprietor, partner

Directors and office Bearers as the case may be.
Certified true copy of the certification on incorporation or registration (in case of
companies and registered bodies only).
Certified true copy of the certified of commencement of business (in case of
public limited companies only)
Certified true copy of the memorandum and articles of association(in case of
limited companies).
Certified true copy of rules and regulation or by-law(in case of limited
companies).
Certified true copy of the Resolution of the Board of Director/Managing
committee/Governing Body regarding conduct of the account.
List containing names and signatures of the Director/Office Bearer duly certified
by registration authority.
Latter of partnership or certified copy of partnership dead (in case of partnership).
Trust deed and board Resolution, for trust accounts.

Specimen signature card

When an account is opened with account opening form a specimen signature card is given
to the customer who contains:

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Branch code
Date

The Bank Of Punjab

Gujrat
INTERNSHIP REPORT

Account No.
Title of account
Special instruction
Names
Signatures
Approved by

The customers fill this card and return to bank officer. For illiterate person thumb
impression are taken and to latest passport photograph shall b taken. The specimen
signature card is scanned in the computer system, so that whenever the account holder
cheque will come the bank officer will verify his signature to the computer.
Issuance of cheque Book
Any account holder that has opened the account he/she credit his/her account and for this
purpose there should be a cheque book, so he/she could be able to credited the need
amount whatever he/she wishes. For the issuance of the cheque book a person is advice to
fill a requisite slip with his/her full name and their account with two verified signature.
These signatures are checked and then another requisite slip prepared by bank staff send
to the NIFT, and it issue the printed cheques books after completion of the procedure in
two or three days. Account holder another person could also take the cheque book only
he/she authorized signature of the account holder. When the cheque is issued they are feed
in the computer system from the requisite slip so when the cheque is given for the credit /
transfer of amount they could checked. In this way neither the cheque could be repeated
nor could the invalid cheque claimed.
Closing of Account
The customer can close his account by submitting an application form. The account is closed
and balance is paid after deducting the closing charges and application in filled in account
closing file. Cheque book is returned to the bank. The bank officer cancels all the cheques.
Dormant Account
When any customer does not operate his account for 6 months, then computer automatically,
includes that account holder in an active account. This is dormant account. Now account
holder cannot operate his account. Bank informs him that your account is now in active.
Activation of a Dormant Account
For activation a dormant account the account holder submits an application that he wants to
activate his inactivate account, with N.I.D. copy. Then the bank officer fills an account, which
is account activating form the bank manager sigs on the stamp of Allow to operate. Now
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Gujrat
INTERNSHIP REPORT

account holder can operate his account but for activating his account, he has to pay some
charges.
Regional office and branches:

Necessary information, which a bank requires

Name

Operating Instructions

Address

Introducer

Telephone #

Country of residence

Zakat Deduction

Nature of Business

Signature of the Applicant

Details of other Banks

Accounts

Account (local or foreign

currency)
Special Instruction Regarding
the Account

The total number of branches of BOP is 272 in the whole country. It has no branch in foreign
countries.
Current staff:
There are seven employees in the branch. They are much qualified have knowledge of
general banking. There is a proper hierarchy in the branch and everyone knows his
responsibilities.
Current Staff according to qualification and experience:
Names

Qualification

Experience

Faisal

MSC Physics

11 years

Layaqat Ali

M.Com

07 years

Miss Anila

MSC Physics

09 years

Qasim Ali Raza

M.A

05years

Economics
Salary
structure:

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The Bank Of Punjab

Gujrat
INTERNSHIP REPORT

BOP is offering handsome salary packages to its employees. Its salary structure is as follows:

Designation
Cash officer
Officer Grade 3
Officer Grade 2
Officer Grade 1

Starting salary in rupees

8000
16000
24000
35000

Apart from the salary the other incentives are also provided.
Promotion system:

The employees are promoted to reinforce the desire able performance. There are
certain criteria on which employees are evaluated.
Employees are promoted on the basis of performance and their commitment
toward their jobs.
Employees are also promoted on the basis of their experience and qualification.
The highest rank in a branch is OG1.
The performance is evaluated on the basis of working as well as number of
deposits brought by that employee.

Incentives and motivation:

Incentives:

Two bonuses on Eid ul fitr and Eid ul Azha. Each bonus is equal to one basic salary.
Performance bonus at the end of the year based on performance.
Provident fund
Medical allowance

Motivation:

24

Employees are motivated through the benefits and salary

Employees are motivated when their hard work is recognized.
The staff of branch is also motivated due the success of branch and organization.
There is no separate room for the manger of branch.
The environment of branch is very congested.

The Bank Of Punjab

Gujrat
INTERNSHIP REPORT

Critical analysis of branch:

The branch is situated in ramtalai road which is busies place of Gujrat. The trading
activities are on the rise where the branch is located so there is huge potential for
branch to increase its deposits and improve its market share.
The number of deposits is increasing day by day.
The attitude of staff toward their customer is very polite
The online banking facility is very quick and responsive.
The security system of the branch is not satisfactory, security may lapses may occur at
times.
Employees are not well dressed
The budget fir employee entertainment is very low.
Employees are highly trained.
The salary packages are not attractive as compare to other banks.
No refreshment is provided after meeting.
The latest computer systems are provided to the employees.

Communication
The communication between employees is not good; employees interact with each other
through the loud voices. There is no intercom system in branch. They interact with each other
with Punjabi. They communicate with customer with informal way and overall
communication system in not well in banking system.
Recruitment of staff
Recruiting is the discovery of potential skill of the employees to fulfill organizational needs
or we can say that it is linking activities of bring together employees with skills to fill the
vacancies. The recruitment procedure has following steps.
Short-Listing of the application
In this step, thousand of the candidates apply for limited posts available. The calls and send
by the head office to only those candidates who fulfill the requirement of job advertised.
Tests
NBP under the super vision of institute of bankers in Pakistan conduct test. After the
Test the applicants are further short- listed.
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Interviews
For the interview only those candidates are called who qualify the written test.
Different types of questions are asked from candidates by the interviewing board.
Interview questions include,
A) Question about personal background, extracurricular activities during education
and personal contacts.
B) About the rule of banking in current situation of economy.
C) Role of foreign enterprise in public economy etc.
Morale of the employees:
Morale of some employees is very high. Some of employees are not much dedicated as
others. Most of the employees are committed to their jobs and they look very involved in
their work. Overall the staff of branch is very motivated and they wanted to excel in their
respective fields.
Physical facilities:

Overall physical facilities in the branch are very good.

All the general banking operations are done through manually supported computer
system.
High speed branded computer are provided to the employees so that they can perform
their duties quickly.
Air conditioners are installed to provide comfort to employees and their client of BOP.
The branch is decorated with comfortable furniture. Good looking and durable
furniture is provided.
Cash officers cabin is well guarded to avoid any undesirable event.
Fax machine and laser printer are also provided.
It is online branch so internet connectivity is provided with throughout the working
hours.

Performance:
The performance of the branch has improved to a great extent; this is can be by the number of
deposits and degree of the satisfaction of customers.
Performance in the term of customers satisfaction:
The customers are much satisfied as I observed during my internship; there is a good
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relationship between employee and clients. The staff of branch is very quick to respond the
queries of customers.
Performance in the term of number of deposits:
The performance of branch can be measured from number of deposits. Currently the
performance of branch is very good. The number of deposits is increasing. The average
numbers of new account opened in a day are 5 to 6. This shows very good performance of the
branch.
General Banking
Deposit banking
Along with this bank is offering different schemes in all over province. Here is the detail list
of the products and services offered by BOP.
Deposit products

Current accounts
BOP basic banking account
BOP Tijarat account
BOP FCY supreme current account

Profit & loss sharing accounts:

BOP Pehlai Munafa Scheme

Corporate premier term account
Munafa hi Munafa term account 3
Bai Misaal term deposit Account

Profit loss sharing chequing Accounts

PLS saving Accounts

Senior citizen saving account
Gharayloo Saving Account
Ziada Munafa saving account
PLS saving profit plus Accounts
Corporate Premier Account
BOP PLS supreme saving Account
BOP FCY supreme saving Account

Commercial Finance

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Running Finance
Demand Finance
Cash Finance
CNG filling station Scheme
Auto lease financing
Ali Akbar Group Franchise Financing scheme
Altas Honda limited Authorized Dealer financing Scheme
Financing scheme purchase of office/shops

Agriculture credit

28

Green tractor Lease finance scheme

Agri Finance Branches
Agriculture finance scheme
Kissan Dost Tractor scheme
Second Hand tractor lease finance scheme
Kissan Dost Abiari scheme
Kissan Dost Mechanization support scheme
Kissan Dost Farm transport scheme
Kissan Dost Eslah E-Arazi scheme
Kissan Dost live stock Development scheme
live stock Breed Improvement Trough VVW
Kissan Dost commercial Agro Services
Kissan Dost Agri Mall scheme
Commercial lease finance Tractor scheme
Demand Finance Sheds Construction and civil works Lease finance
facility for Milch Animals
running finance Live stock/Poultry and fish Farms
Kissan Dost Model Dairy Farms(PDDC)
Kissan Dost Model Milk collection center(PDDC)
Kissan Dost Green House Finance facility
Kissan Dost Cold Storage finance
facility scheme for controlled Sheds
Lease finance Facility for installation of BIO gas Plant
Group Financing to small Farmers
Clean credit facility through Syngenta Franchisees
Zarkaashat Drip Irrigation system
Markup of scheme

The Bank Of Punjab

Gujrat
INTERNSHIP REPORT

Trade Finance

Trade processing Centers

Functions of Trade processing Centers
Source:

http://www.bop.com.pk/
Services of BOP
These are the services provided by BOP.

ATM facilities
Letter of credit
Pay order
Online banking
E- Banking
Debit Credit
Consumer Financing
Agriculture Financing
Corporate Financing
Commission free Remittance
Demand Draft
Collection of Utility Bills
Lockers facility

Issuance of ATM
Head office issue ATM cards with their Pin codes and when the customer claims for their
ATM cards they are checked From the list that is also issued from the head office, and Claim
is checked from the list and if the name is found than the card is issued taking the signatures
and their PIN codes are given to them by taking signature on their ATM forms. The ATM card
has been activated by the number provided at specific card.
Cancellation of ATM card
Cancellation of ATM card becomes necessary in the following conditions:
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INTERNSHIP REPORT

If folded are damaged

Stolen PIN code missed or forgotten

Card captured by machine and expired

If requested by customer

Online Banking
BOP is currently offering the online banking facility, you just have to fill the form of online
banking and they give your username and will access your account on the internet and will
latest information related to your account.
Pay Order
BOP is providing the pay order facility in which you transfer your money. Pay order is a safe
and secure way to move the money from one account to another. The charges are extremely
fair.
Mail Transfer
You can use BOP mail transfer facility and send your money safe and quickly. The rates are
very impressive and competitive.
Letter of credit
Bop is providing its customers the widest range of option in the area of money transfer. This
service is with fair rates, security, and ease of transactions, and good way to do business
transactions.
Lockers
It is one of main facility that BOP is providing at this time so the customer can keep their
valued things like gold in safe place.

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Demand Draft
Bop gives you the safe, speedy and reliable way to transfer money at very reasonable rates.
Any person with any account holder of the bank or not, can purchase a Demand Draft from a
bank branch.
Debit Cards
BOP provides Apna cash Card it is an ATM card along with Debit Card. The Front of the card
will have the following matter on it.

Cash Holder Name

International Bin number
Magnetic strip Signature panel condition of usage
M-Net and M-net logo

Business Volume
The BOP is conducting their business in Punjab. And their main customers are government.
Mostly government employees are customers for bank of Punjab. The fact and figures of the
business volume of the BOP are mentioned below. These facts and figure start from 2004 to
2007 because the bank does not provide any figures from there on.
2004

2005

2006

2007

Rs(ML)
Total assets

66,320

111,154

164,855

234,97
4

5,488

10,912

18,603

26562

4,420

6,777

10,659

15,110

16,198

18,026

28,233

54,724

88,465

137,728

39,439

63,624

101,320

73,462
191,96
8
133,89
4

1,368

2,353

3,804

4,446

9.08

10.01

13.14

10.51

Rs(ML)
Revenue
Shareholder's
Equity

Rs(ML)
Rs(ML)

Investment
Rs(ML)
Deposits
Rs(ML)
Advances (net)
Rs(ML)
Income
Rs
EPS (Rs/share)
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%
ROI

13

13

SWOT Analysis
BOP is one of the fastest Growing banks in Pakistan. In the light of these situations we can
make an analysis, SWOT analysis is overall evaluation of an organizations strength,
weakness, opportunities that effects the organizational performance. Best strategies can be
accomplished by using SWOT analysis:

Exploitation of organization opportunities and strength.

Neutralization of threats.
Correction and avoidance of weakness.

We can easily formulate Strategy with the help of SWOT analysis keeping the organization
mission in context, manager focus on the internal strength and competencies and asses the
weakness and threats for organization.
Strengths:
o The major share of BOP is owned by the Government of Punjab, so it can develop a
good image and trust among customer.
o Personal selling has key role in the banking services. The officers of bank of Punjab
go to the potential customer to develop the business. By the relationship with
customer, they achieve the deposit targets.
o The officer of BOP is considered very professional in their fields. They do their jobs
according to segment of target market. The main strength is to treat their customer as
a friend and discuss their problem with them.
o Using this method the officers created high perception of the bank in the customers
mind, and this is why customers have trust and loyal relationship with the bank.
o BOP rapidly opening their branches all over their country so that their customers can
easily excess to the bank. The bank of Punjab has very good internal system. The
records of customers are held in very secure way and easily accessible.
Weaknesses
A major weakness of BOP even mentioned by the Auditor is lack of internal controls.
Despite of BOP several services and products not even a single add is published on
electronic media.
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During my internship I observed some of the employees burdened with overwork, which I
think should be distributed according to their post and capabilities.
Favoritism of employees.
The BOP has very less staff in this branch as compare to upper Punjab. This creates problem
employees have spend most of their time in bank to complete their routine work. For this
reason their normal life is disturbing which create the irritating in the behaviors of
employees.
Opportunities
o BOP introduced large number of financial schemes especially Deposit Account.
o BOP should focus on IT, especially on E-banking as 21st century future is information
technology, like foreign bank BOP can design universal account to improve online
facility.
o Today the customers have different needs BOP introduced a lot of scheme that will
meet the demand of Dynamic customer, so with the wide range of product and
services people are becoming more loyal with the bank, also branding strategies of
bank or helping them.
Threats
o Business of all bank are growing day by day so BOP has to face strong competitors.
o There are very difficult circumstances in our country at this particular time, banking
sector is facing difficult situation, the BOP is making higher profit the adverse
situation can be harm the bank financially
o Businesses of all the banks are growing day by day so bop has to face strong
competitors.
o There are very difficult circumstances in our country at this particular time, banking
sector is facing difficult situation, although the BOP is making the higher profit the
adverse situation can harm the bank financially
Organizational Structure
Board of Directors

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President

Corporate
head

Consumer
Head

Commerci
al Head

Regional
Heads

Branches

Board of Directors

34

Retail
Head

The Bank Of Punjab

Gujrat
INTERNSHIP REPORT

Name

Designation

Mr. Abdul GhafoorMirza

Chairman

Mr. Farooq Ahmed Awan

Director

Mr. Junaid Ashraf Khawaja

Director

Mr. Muhammad NaveedMasud

Director

Mr. RizwanUllah Khan

Director

Mr. ShafqatMahmood

Director

Mr. Tariq Bajwa

Director

Mr. Tariq Mahmood Pasha

Director

Mr. Naeemuddin Khan

President

Mr. RazaSaeed

Secretary to the
Board

Bop Management
Sr. No
1
2

1
2
3

Designation
President Secretariat
President
Deputy CEO

Audit & Risk Asset Review

Group Head Audit & Risk Asset
Review
Head RAR & BASEL
Head MS & IS Audit
Commercial & Retail Finance
Group
Group Head Commercial Banking &
Retail Finance
Business Planning & Development

35

Name
Mr. Naeemuddin Khan
Mr. Khalid
SiddiqTirmizey
Mr.
IjazurRehmanQureshi
Mr. Mansoor Akbar
Mr. Imran Bashir

Mr. Liaquat Ali

The Bank Of Punjab

Gujrat
INTERNSHIP REPORT

1
1
2

1
2
1

Department
Head Business Planning &
Development Department
Retail Finance Division
Head Retail Finance Division

Mr. S.M. Atif

Credit Administration
Head Credit Administration Division
Deputy Head Credit Administration
Division

Mian Muhammad Sharif

Mr. ShahnawazSaeed
Khan

Compliance & Internal Control

Head Compliance & Internal Control
Head Compliance & Internal Control

Mr. Irfanuddin
Mr. Hafeezud Din

Corporate & Investment Banking

Head Corporate & Investment
Banking
Group-I
Head Corporate & Investment
Banking
Group-II

Agriculture Credit
Head Agriculture Credit

1
2

Finance
Chief Financial Officer
Deputy Head Finance

1
2
3
4

Human Resource
Group Head
Deputy Head (Acting)
Head / Principal Officer's Training
Institute
Head Security / Transport

Legal
36

Mr. Salman Saeed

Mr. Khalid Qaiyum

Mr. Asim Jahangir Seth

Mr. Abdul
QayyumSukhera
Mr. Nadeem Amir
Mr. Muhammad
IqbalShahzad
Mr. MoghisBokhari
Mr. SohaibQureshi
Syed Zaki Ahmad
Lt. Col. (Retd.) Sajid Ali
Khan

The Bank Of Punjab

Gujrat
INTERNSHIP REPORT

Head Legal

Retail Banking
Group Head Retail Banking

2
3
4

Head Media & Advertising

& R.C Lahore South
Regional General Manager North
Regional General Manager Center

Risk Management
Chief Risk Officer

1
2

Operations, I.T & General Services

Group Head Operations, I.T & GSD
Head Information Technology

Head Administration

Head General Services

Special Projects
Group Head Special Projects

1
2
1

37

Special Assets Management

Head Special Asset ManagementCommercial
Head Special Asset Management
Transaction Banking
Group Head Transaction Banking
Group & Equity Capital Market*
Treasury
Head Treasury

Syed
MudassarHussainNaqvi
Mr.
ShahidWaqarMahmood
Mr. Ahmed RaziGhazali
Mr. AmerMumtaz
Mr. Amir Hassan
Mr. Tariq Maqbool
Mr. Faqir Syed Azm Ali
Mr.
AzharHussainDilawari
Mr. Muhammad
Nauman
Col. (R) Tenwirul
Hassan
Mr. SajjadHussain
Mr. Aamir Malik
Mr. Mahboobul Hassan
Mr. Mustafa Hamdani

Mr. KhawarShahid
Ansari

The Bank Of Punjab

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INTERNSHIP REPORT

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

BOP Head Office

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

The main head office of the BOP is located in the main boulevard road, Gulberg, Lahore.
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Branches Network

Branches Network regions

Lahore central-I Region
Multan Region
Lahore Central-II Region
Faisalabad Region
Lahore north Region
Gujranwala Region
Lahore south Region
Gujrat Region
Peshawar Region
Bahawalpur Region
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Islamabad Region
D.G.Khan ] Region
Rawalpindi Region
Jhelum Region
Sialkot Region
Sheikhupura Region
Bahawalnagar Region
Sahiwal Region
Jhang Region
Khushab Region

Introduction to Departments
Bank of Punjab is one of the most emerging banks in our country. In recent times they have
increased their network of branches and now they are reaching to every one possible
customer, like the others banks the bank of Punjab works with mostly all banking operation.
There are following departments that are working in bank of Punjab.

Deposit Department
Remittances Department
Clearing Department
Account Department
Bill Department
Credit Department

Deposit Department
One thing is sure here those banks are mostly relying on their customer which gives them
their capital in form of the deposit. This deposit belongs to the different parties. Bank makes
huge profit if the spread between the lending and borrowed rate is wide. If the bank has larger
capital it gives more credit to parties and will earn more profit.
Bank does not take deposit for the purpose of the save keeping they take the deposit lend to
other parties. It becomes the relationship of the creditor and debtor. Customer is then become
the creditor for the bank and same vice versa. So bank must make proper investment of the
money to earn a profit Bank of Punjab provides different kind of deposits in their bank.
Some of them are written as follow

40

Current or demand Deposits

Saving Deposit

The Bank Of Punjab

Gujrat
INTERNSHIP REPORT

Notice Term Deposit

Call Deposits
Fixed or Term Deposits

Current Deposit
Current deposit is that kind of deposit that gives the customer right to demand the funds
whenever they want. Bank does not pay any profit in that kind of accounts. The current
deposits are usually taken by the business persons or the parties which requires money on
daily basis.
Saving Deposit
There are different scheme of saving deposits, which are considered the by the salaried class
persons. The saving deposit gives you the profit on fixed period of time. Although withdrawn
of the money will be restricted at fixed period of time.
Notice Term Deposit
This is opposite to the demand deposits; in this kind of deposit the client easy withdraw the
money at any time. These deposits are for the shorter period of time. In this kind of deposit
the customer will earn the profit out of its deposit.
Call Deposits
These deposits are given to the bank usually by the contractors against any tender. These
deposits are without interest rate, or may be interest can be provided with will of the bank.
Term Deposits
This type of deposit is same to the short notice term deposits, but the key difference is that
these deposits are for the longer period of time.
Remittance Department
Remittance is considered one of the main functions of the bank. It means transfer the money
from one place to another. This department is the responsible for the mobilization of the
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money. In our daily life there is a great need of the remittance. By providing this facility the
bank of Punjab is making the customer more loyal towards them.
Types of remittance
The bank of Punjab provide these remittances

Demand Draft
Mail Transfer
Telegraphic Transfer
Pay Order

Demand Draft
Demand draft is an order in writing given by one branch of the bank on the behalf of the
customer to another branch of the same bank with certain person.
PROCEDURE
1. A draft voucher contains the following information
o Name of the parties involved
o Date
o Amount to be sent
o Account number (if DD is crossed)
2. Voucher is filled to earn excise duty and exchange commission.
3. Then cash receipt is sent to the account department to keep the record of the amount
paid in cash scroll.
4. Accountant hands over the DD leaf and DD voucher to his assistant to record senders
name , amount and
5. Payees name in the register then assistant gives it to the officer along with the DD for
authentication.
6. After authentication of DD it is given the sender and advice to the concerned branch.
7. So as soon as party shows the DD payment is done through the concerned branch.
Parties Involved
In demand draft following parties are involved
1. Purchaser or Sender, A person who sends money to a certain person at a particular
branch is purchaser.

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2. Issuing or Drawing Branch, The branch from where the draft issued to another branch
of the same bank.
3. Drawer Branch, Branch to which draft has been sent and has to pay the amount.
4. Payee, Payee is a person who is named to receive the amount after showing the
demand draft to the drawer branch.
Mail Transfer
Through mail directly credit is sent to the receivers account from one branch to another
branch of the same bank.
Procedure
1. Firstly the voucher is filled with the amount to be sent, name and account number of
the payee, date and the name of the branch to be sent.
2. Voucher is filled to earn income in order to exchange, postage the amount to the mail
transfer.
3. The sender deposits the total amount in the cash department.
4. The cash officer affix received cash stamp & amount written on it with red link and
hands it over the voucher the officer.
5. The officer writes the cash amount in the scroll and gives it to his assistant.
6. Mt leaf is filled according to the information given on the voucher by the sender then
this information is noted on MT register which is sent to the officer for authentication.
Telegraphic Transfer
Most urgent way of sending money is Telegraphic Transfer TT by which the sender remits the
money urgently. Manager of the branch issues TT in this case to the sender.
Procedure
1. The manager and officer use coding technique for sending TT which is allotted as
bank branch code.
2. After all the conformation payment is done to the receiver but if sender wants to send
same massage.
3. Through telephone he has to pay extra charger along with TT charges.

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Clearing Department
This department receives different kind of instrument of the behalf of customer. Instruments
with clearing and date stamp fixed on it drawn on banks as well as BOP in same city are
called clearing.
Types of Clearing
There are two types of clearing

Outward Clearing
Inward Clearing

Inward Clearing
These are those checks that are cleared inter branch and within the city. As the concerned
branch receive any type of clearing check first of all physical checking is taken place. For
clearing procedure there should be two days margin. These cheques have their vouchers and
the amount of the cheque and voucher should be identical. Than these cheques are stamped
and noted on receiving sheet as well as feed in to the computerized system.
Outward Clearing
These are those cheques that are cleared outside the city. For outward clearing cheques are
send because the home branch has their accounts but checks are of the other banks. Contras
of these cheques are vouchers that are recorded in the home branch.
Accounts Department
Account department is the main function of the bank. It plays a main function for the
performance of the bank. The account department is now become a computerized and all the
debit and credit entries are now made in the computer. The computer than create two types of
voucher. Debit voucher and credit voucher.
Bills Department

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As the name suggest this particular department handles the bills for collection. These bills
include cheque, draft, and pay order, call deposits etc. with outstation branches of BOP or
with other banks. He four main heads of bill department is.

Outward Bill for Collection (OBC)

Inward Bills For Collection (IBC)
Outward Documentary Bills For Collection (ODBFC)
Inward Documentary Bills For Collection (IDBFC)

Credit Department
This department deals with loan function of the bank. It produces the major bank income and
it is main area for bank concern. There are 5 principles that must observe while advancing
money to the borrowers

Safety
Liquidity
Disposal
Remuneration
Suitability

Porter model:
1. Entry barriers (high)
The Pakistani market is highly regulated by the government and also by central bank. A lot of
decision such as regularization of interest on loans and deposits as well as money supply is
controlled by the state bank of Pakistan
2. Rivalry among the existing competitors (high)
When it comes to the banking sector in the country we could include in whole lot of public as
well as private banks along with NBFCs and micro finance institutes widely spread in the
country. The banking sector of the country has 56 banking institution which include public
sector, Islamic banks, foreign banks, development financial institution, specialized banks, and
micro finance institutions.
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3. Bargaining power of suppliers (medium)

The supplier of banks is people from whom the bank raises funds. So the major source funds
come from their customer (depositor), who becomes the supplier in this case
4. Bargaining power of the customer (medium)
The customers and the depositors have a high bargaining power in the market. Any bank
giving the higher rate of interest would attract a large number of customers. Because there are
number of banks operating in the market which offer similar service.
5. Threat from substitutes (high)
There are number of substitutes in retail fianc industry such as money lender, NBFDs, micro
finance and also the insurance companies. Banks are seeing the competition rise form
unconventional companies. Markets like Pakistan customer have high propensity towards
switching to other substitutes
Summary:
BOP has certain weaknesses and strengths. The external environment has a great influence on
the performance of the bank. The regulations are very high the environment is very
competitive.

Recommendations

In the light of the Knowledge obtained during internship and studying the

organization, the following recommendations may prove to be successful to the bank.

In order to capture a considerable share in the banking sector of the country, the prime
objective should be awareness in the general public. For this it should launch a wellplanned advertising campaign in the general public.

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Physical facilities in a bank also play their role in enhancing its grade and sound
image. The bank should keep these facilities like furniture, parking facilities for the

customer.
Salaries of the officers must be compatible to other private banks so that the BOP can

attract professionals, intelligent persons.

The Bank of Punjab should minimize its expenses.
Special awards should be given to the hardworking employees who performed extra-

ordinary in the bank.

The bank should come up with new and innovative products. It would be advisable to
make these products while keeping in mind the gap between what people want and

what their banks are providing them.

The Bank of Punjab should concentrate more on advances than on investments
The bank should come up with such products or services in which the customers

would not have to come to the bank at any stage i.e. Telephone Banking etc.
The Bank of Punjab should use the latest technology because the bank which can
provide speedy, accurate and standard services in the delivery of products, loans etc.

to the customers will be successful e.g. computerization, fax installation.

The authority should be delegated to the manage level.
MIS should improved by connecting all regional offices and branches to the head

office through a network for timely delivery of information.

Management of Bank of Punjab should try to avoid the political influences and should

give loans on merit.

The bank should make a plan to gear up its recovery function on war fooling and

recognize the recovery function.

The Bank of Punjab should give some extra credit to concern to professional
qualifications such as BBA, MBA (IT)s, M.B.As, C.As A.C.M.As at the time of

recruitment and selection.

Interview should be conducted while recruiting personnel, to consider the personality

characters, communications skills and sociability.

The bank should adopt a policy to accommodate and facilitate the research scholars
who want to study the banking affairs. The universities and other institutions can help

to launch the studies regarding banking business.

All possible efforts should be made to protect the bank from the interruption of
Provincial government.

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There should be an association of employee to convey the voice of the employees to

the administration.
Participative management concept should be adopted, where ideas from the
employees should also be take, not only for developing products but also service,

efficiency, employee morale etc. in order to improve them.

Bank of Punjab is a very well established bank, but the number of air conditioners
they have in the whole bank is very less. Bank should increase the number of its Split

units, because summer stays longer in Lahore.

The number of Fax machines and photocopying machine in he bank are also less than
they are needed. For photocopying one has to go downstairs. SO there should be more

machines and also their placement should be at the right place.

BOP should introduce more training programs for their employees. It will help less
educated and less experienced staff to grow and be a valuable part of the bank.

Conclusions
I thoroughly checked the performance of the BOP and I realized that it is becoming one the
most growing bank in our country. The financial reports are very encouraging and the
shareholders are very happy about it. Also there are some flaws in their operations which they
need to overcome, if they want to reach at top. Continuous efforts should be made to increase
the quality of the products and services of the bank.
Internship is an interesting experience, which gave me the practical knowledge about banking
field. I observe banking activities very closely and become part of it. I learnt a lot from my
supervisor and understood the operations of banking. This internship enhances my experience
and skills.
Abbreviations
BOP (Bank of Punjab)
BOM (branch Operational Manager)

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The Bank Of Punjab

Gujrat
INTERNSHIP REPORT

References:
MrQasim
Annual report BOP: 2010
www.scribd.com
www.pba.com.pk
www.brecorder.com.pkEconomic review of Pakistan
http://en.wikipedia.org/wiki/Bank_of_punjab
www.bop.com/prducts/48
www.bop.com/products/35(https://www.bop.com.pk/index.php
https://www.bop.com.pk/Financial/AnnualAccounts.aspx
www.sbp.com.pk
www.bop.com.pk
http://www.antiessays.com/free-essays/74909.html
http://www.scribd.com/doc/51440815/4/Business-Volume

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