History of Bank of Punjab

8/3/2019 History of Bank of Punjab

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HISTORY OF BANK OF PUNJABHISTORY OF BANK OF PUNJAB The Bank of Punjab started functioning with the inauguration ofThe Bank of Punjab started functioning with the inauguration of

its first branch of 7its first branch of 7--egerton road, Lahore on November 15,egerton road, Lahore on November 15,1989. The architect of the bank was Mr. Nawaz Sharif Chief1989. The architect of the bank was Mr. Nawaz Sharif ChiefMinister of Punjab at that time performed the inauguration.Minister of Punjab at that time performed the inauguration.

The emergence of new bank on the national scene in the earlyThe emergence of new bank on the national scene in the early

1990s has done two important services to the nation.1990s has done two important services to the nation. The savings base of the economy has effectively enlarged andThe savings base of the economy has effectively enlarged and

hence the investment opportunities have increased.hence the investment opportunities have increased.

The services of the banks in the fact of severe competition haveThe services of the banks in the fact of severe competition haveimproved considerably so that now consumer are left withimproved considerably so that now consumer are left with

extensive choice to do or undo their business relations with theseextensive choice to do or undo their business relations with thesebanks keepings in view of the services.banks keepings in view of the services.


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CONTDCONTD

The Bank of Punjab is working as a scheduledThe Bank of Punjab is working as a scheduledcommercial bank with its network of 260commercial bank with its network of 260branches at all major business centers in thebranches at all major business centers in the

country. The bank provides all types ofcountry. The bank provides all types ofbanking services such as deposits in localbanking services such as deposits in localcurrency, client deposits in foreign currency,currency, client deposits in foreign currency,remittances, and advances to business, trade,remittances, and advances to business, trade,industry and agriculture. The Bank of Punjabindustry and agriculture. The Bank of Punjabhas indeed entered a new era of science to thehas indeed entered a new era of science to the

nation under experience and professional handsnation under experience and professional handsof its management.of its management.


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CONTDCONTD

The Bank of Punjab plays a vital role in the national economyThe Bank of Punjab plays a vital role in the national economythrough mobilization of hitherto untapped local resources,through mobilization of hitherto untapped local resources,promoting savings and providing funds for investments.promoting savings and providing funds for investments.

Attractive rates of profit on all types of deposits, opening ofAttractive rates of profit on all types of deposits, opening of

foreign currency accounts and handling of foreign exchangeforeign currency accounts and handling of foreign exchangebusiness such as imports, exports and remittance, financing,business such as imports, exports and remittance, financing,trade and industry for working capital requirements and moneytrade and industry for working capital requirements and moneymarket operations are some facilities being provided by the bank.market operations are some facilities being provided by the bank.

The lending policy of bank is not only cautious and constructiveThe lending policy of bank is not only cautious and constructivebut also based on principles of prudent lending with maximumbut also based on principles of prudent lending with maximum

emphasis on security. As agriculture in considered as backboneemphasis on security. As agriculture in considered as backboneof our economy the Bank of Punjab has introduced Kissanof our economy the Bank of Punjab has introduced KissanDost Agriculture Finance Scheme to small farmer andDost Agriculture Finance Scheme to small farmer andcultivators.cultivators.


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MISSION STATEMENTMISSION STATEMENT

Be a dynamic resource of economicBe a dynamic resource of economic

development and growth fordevelopment and growth forstakeholders through servicestakeholders through service

excellence, achieving high standardsexcellence, achieving high standards

of professionalism, dedication,of professionalism, dedication,

integrity and team work.integrity and team work.


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VISION STATEMENTVISION STATEMENT

To be a customer focused bankTo be a customer focused bankwithwith service excellence.service excellence.


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COREVALUESCOREVALUES

Our CustomerOur Customer As our first priority.As our first priority.

ProfitabilityProfitability For the prosperity of ourFor the prosperity of ourstakeholders that allows us to constantlystakeholders that allows us to constantly

invest, improve and succeed.invest, improve and succeed. Corporate Social ResponsibilityCorporate Social Responsibility To EnrichTo Enrich

the Lives of community where we operatethe Lives of community where we operate

Recognition and RewardRecognition and Reward For the talentedFor the talented

and high performing employeesand high performing employees ExcellenceExcellence In every thing we do.In every thing we do.

IntegrityIntegrity In all our dealings.In all our dealings.

RespectRespect For our customers and each other.For our customers and each other.


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MAJOR CUSTOMER OF BOPMAJOR CUSTOMER OF BOP

Some of the major customers of Bank ofSome of the major customers of Bank of

Punjab are:Punjab are:

Educational InstitutesEducational Institutes

AgriculturistsAgriculturists

Pakistan Telecommunication PrivatePakistan Telecommunication Private

LimitedLimited

WAPDAWAPDA Pharmaceutical CompaniesPharmaceutical Companies

WASAWASA


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WORLD WIDE WEB SITEWORLD WIDE WEB SITE

httphttp://www.punjab://www.punjab bank.com/bank.com/

This is the official website ofThe Bank of PunjabThis is the official website ofThe Bank of Punjab--establishedestablishedin 1989, in pursuance ofThe Bank of Punjab Act 1989 andin 1989, in pursuance ofThe Bank of Punjab Act 1989 andwas given the status of scheduled bank in 1994. The Bank ofwas given the status of scheduled bank in 1994. The Bank of

Punjab is working as a scheduled commercial bank with itsPunjab is working as a scheduled commercial bank with itsnetwork of 260 branches at all major business canters in thenetwork of 260 branches at all major business canters in thecountry. The Bank provides all types of banking services suchcountry. The Bank provides all types of banking services suchas deposit in local currency, client deposit in foreignas deposit in local currency, client deposit in foreigncurrency, remittances, and advances to business, trade,currency, remittances, and advances to business, trade,industry and agriculture. Information regarding the shareindustry and agriculture. Information regarding the shareholder, foreign currency rates, branch networks, balanceholder, foreign currency rates, branch networks, balance

sheet etc can be accessed through links on this website.sheet etc can be accessed through links on this website.

EE--mail: [email protected]: [email protected]


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PRODUCTS AND SERVICEPRODUCTS AND SERVICE


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VERTICAL ANALYSIS OF BOPVERTICAL ANALYSIS OF BOP

Balance sheetBalance sheet 20112011 20102010

Cash and balances with treasury banksCash and balances with treasury banks 8%8% 9%9%

Balances with other banksBalances with other banks 1%1% 1%1%

Lending to financial institutionsLending to financial institutions 1%1% 1%1%

InvestmentsInvestments -- netnet 33%33% 22%22%

AdvancesAdvances -- netnet 50%50% 59%59%

Operating fixed assetsOperating fixed assets 4%4% 4%4%

Deferred tax assetsDeferred tax assets -- netnet

Other assetsOther assets -- netnet 5%5% 4%4%

Total AssetsTotal Assets 100%100% 100%100%


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CONTDCONTDLiabilitiesLiabilities 20112011 20102010

Bills payableBills payable 2%2% 2%2%

BorrowingsBorrowings 9%9% 5%5%

Deposits and other accountsDeposits and other accounts 72%72% 74%74%

SubSub--ordinate loanordinate loan

Deferred tax liabilitiesDeferred tax liabilities 1%1% 0%0%

Other liabilitiesOther liabilities 3%3% 5%5%

Net assetsNet assets 14%14% 13%13%

Total LiabilitiesTotal Liabilities 100%100% 100%100%


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HORIZONTAL ANALYSIS OFHORIZONTAL ANALYSIS OF

BOPBOPBalance sheetBalance sheet 20112011 20102010AssetsAssets

Cash and balances with treasury banksCash and balances with treasury banks 98%98% 100%100%

Balances with other banksBalances with other banks 149%149% 100%100%

Lending to financial institutionsLending to financial institutions 73%73% 100%100%

InvestmentsInvestments -- netnet 173%173% 100%100%

AdvancesAdvances netnet 97%97% 100%100%

Operating fixed assetsOperating fixed assets 104%104% 100%100%

Deferred tax assetsDeferred tax assets -- netnet 116%116% 100%100%

Other assetsOther assets -- netnet 115%115% 100%100%


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CONTDCONTD

LiabilitiesLiabilities

Bills payableBills payable 78%78% 100%100%

BorrowingsBorrowings 197%197% 100%100%

Deposits and other accountsDeposits and other accounts 111%111% 100%100%

Deferred tax liabilitiesDeferred tax liabilities 732%732% 100%100%

Other liabilitiesOther liabilities 74%74% 100%100%LiabilitiesLiabilities 114%114% 100%100%

Net AssetsNet Assets 119%119% 100%100%


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HORIZONTAL ANALYSIS OF BOPHORIZONTAL ANALYSIS OF BOPINCOME STATEMENTINCOME STATEMENT

Profit & Loss AccountProfit & Loss Account 20112011 20102010MarkMark--up / return / interest earnedup / return / interest earned 100%100%

MarkMark--up / return / interest expensedup / return / interest expensed 100%100%

Net markNet mark--up / interest incomeup / interest income 100%100%Provisions & write offProvisions & write off 100%100%

Net markNet mark--up / interest income after provisionsup / interest income after provisions 100%100%

NonNon--markmark--up / interest incomeup / interest income 100%100%

NonNon--markmark--up / interest expensesup / interest expenses 100%100%

Profit before taxationProfit before taxation 100%100%

TaxationTaxation 100%100%

Profit after taxationProfit after taxation 100%100%


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VERTICAL ANALYSIS OF BOPVERTICAL ANALYSIS OF BOPINCOME STATEMENTINCOME STATEMENT

Profit & Loss AccountProfit & Loss Account 20112011 20102010

MarkMark--up / return / interest earnedup / return / interest earned 100%100% 100%100%

MarkMark--up / return / interest expensedup / return / interest expensed --31%31% --29%29%

Net markNet mark--up / interest incomeup / interest income 69%69% 71%71%

Provisions & write offProvisions & write off --14%14% --10%10%

Net markNet mark--up / interest income after provisionsup / interest income after provisions 55%55% 61%61%

NonNon--markmark--up / interest incomeup / interest income 11%11% 14%14%NonNon--markmark--up / interest expensesup / interest expenses --21%21% --21%21%

Profit before taxationProfit before taxation 45%45% 55%55%

TaxationTaxation --15%15% --16%16%

Profit after taxationProfit after taxation 30%30% 38%38%


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INTERPRETATIONINTERPRETATION The interpretation of Vertical and Horizontal analysisThe interpretation of Vertical and Horizontal analysis Vertical analysis is used in comparing the financial statementsVertical analysis is used in comparing the financial statements

of the firms they differ in size. As in balance sheet the assets asof the firms they differ in size. As in balance sheet the assets aswell as the liability and equity are each expressed as a 100%well as the liability and equity are each expressed as a 100%and each item in these categories is expressed percentage of theand each item in these categories is expressed percentage of therespected total while in Income statement its in percentage ofrespected total while in Income statement its in percentage of

Sale.Sale. The Horizontal financial statement analysis is done by restatingThe Horizontal financial statement analysis is done by restating

amount of each item or groups of items as a percentage areamount of each item or groups of items as a percentage arecalculated by selecting a base year and assign a weight of 100 tocalculated by selecting a base year and assign a weight of 100 tothe amount of each item in the base year statement.the amount of each item in the base year statement.

When we compare the BOP position with the previous year netWhen we compare the BOP position with the previous year netassets are increasing continuously.assets are increasing continuously.

When we compared the other liabilities of the BOP we see thatWhen we compared the other liabilities of the BOP we see thatdecrease in the present year.decrease in the present year.

The total liabilities increases as compared to previous years.The total liabilities increases as compared to previous years. BOP position in current year is not good because profit asBOP position in current year is not good because profit as

compared to the previous years is low.compared to the previous years is low.


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RATIO ANALYSISRATIO ANALYSIS

The relationship of one item to anotherThe relationship of one item to anotherexpressed in simple mathematical form isexpressed in simple mathematical form isknown as a ratio. A single ratio in itself isknown as a ratio. A single ratio in itself ismeaningless because it does not furnish ameaningless because it does not furnish a

complete picture. A ratio becomescomplete picture. A ratio becomesmeaningful when compared with somemeaningful when compared with somestandard. So we have taken ratios andstandard. So we have taken ratios andpercentage of the BOP based in its recordpercentage of the BOP based in its recordof the past financial and operatingof the past financial and operating

performance. On the following pages, Iperformance. On the following pages, Imake the analysis of the financialmake the analysis of the financialstatements of BOP by using related itemsstatements of BOP by using related itemsfor the last five years.for the last five years.


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LIQUIDITY RATIOSLIQUIDITY RATIOS

Liquidity ratios means to measure e shortLiquidity ratios means to measure e shortterm solvency of the company. Ability ofterm solvency of the company. Ability ofthe company to pay off its short term debt.the company to pay off its short term debt.Following ratios are calculated in order toFollowing ratios are calculated in order tomeasure the short term m solvency of themeasure the short term m solvency of thecompanycompany


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CURRENT RATIOCURRENT RATIO

Current assets=cash and balanceCurrent assets=cash and balanceterarey banks + balance withterarey banks + balance withother+ banks+ lending toother+ banks+ lending tofinancial institution+ shortfinancial institution+ shortinvestment+ short advance+investment+ short advance+other assests.other assests.


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LEVEARAGE RATIOLEVEARAGE RATIO

These ratios show the capital structure ofThese ratios show the capital structure ofthe firm. Through these ratios we find thatthe firm. Through these ratios we find thathow the firm finance their activities. It ishow the firm finance their activities. It is

more important for the lender to assessmore important for the lender to assessthat the firm can repay the loan amount ortthat the firm can repay the loan amount ortnot. increasing debt increases thenot. increasing debt increases thelikelihood of bankruptcy of the firm.likelihood of bankruptcy of the firm.Following ratios falls under this category,Following ratios falls under this category,

Time interest earnedTime interest earned Debt ratioDebt ratio Debt to equity ratioDebt to equity ratio Debt to tangible ratioDebt to tangible ratio Total capitalization ratioTotal capitalization ratio


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TIME EARNED INTERESTTIME EARNED INTERESTRATIORATIO

YearYear20092009=Rs.4,768,721/Rs.7,573,722= 0.63=Rs.4,768,721/Rs.7,573,722= 0.63

YearYear

20102010=Rs.4,855,569/Rs.13,939,377 ==Rs.4,855,569/Rs.13,939,377 =0.350.35

YearYear

20112011=(Rs.16,832,906)/Rs.16,614,000 ==(Rs.16,832,906)/Rs.16,614,000 =--1.011.01


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DEBT RATIODEBT RATIO

Total Debt = Bills Payable + BorrowingsTotal Debt = Bills Payable + Borrowingsfrom financial institutions + Deposits &from financial institutions + Deposits &other accounts + Subordinate Loans +other accounts + Subordinate Loans +Liabilities against assets subject to financeLiabilities against assets subject to finance

lease + deferred tax liabilities+ Otherlease + deferred tax liabilities+ Otherliabilitiesliabilities

Year 2009Year 2009=Rs.148,729,423/Rs.164,855,137 ==Rs.148,729,423/Rs.164,855,137 =90.21%90.21%

Year 2010Year 2010=Rs.215,978,767/Rs.234,990,675 ==Rs.215,978,767/Rs.234,990,675 =91.90%91.90%

YearYear

20112011 =Rs.182,165,419/Rs.185,909,120 ==Rs.182,165,419/Rs.185,909,120 =97.99%97.99%


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DEBT/ EQUITY RATIODEBT/ EQUITY RATIO

Deposits & other accounts +Deposits & other accounts +Subordinate Loans + LiabilitiesSubordinate Loans + Liabilitiesagainst assets subject to finance leaseagainst assets subject to finance lease+ deferred tax liabilities+ Other+ deferred tax liabilities+ Other

liabilitiesliabilities Total Debt = Bills Payable + BorrowingsTotal Debt = Bills Payable + Borrowings

from financial institutions Total Equityfrom financial institutions Total Equity= Share Capital + Reserves + Un= Share Capital + Reserves + Un--appropriated Profitappropriated Profit

Debt to Equity Ratio = Total Debt / Tot al EquityDebt to Equity Ratio = Total Debt / Tot al Equity Year 2009Year 2009 =Rs.148,729,423/Rs.10,658,968= 13.95=Rs.148,729,423/Rs.10,658,968= 13.95

Year 2010 =Rs.215,978,767/Rs.15,126,567 = 14.27Year 2010 =Rs.215,978,767/Rs.15,126,567 = 14.27Year 2011 =Rs.182,165,419/Rs.5,040,949 = 36.13Year 2011 =Rs.182,165,419/Rs.5,040,949 = 36.13


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STRENGHTSSTRENGHTS The major shares of BOP are owned by the Government of theThe major shares of BOP are owned by the Government of the

Punjab, so it can develop a good image & trust among itsPunjab, so it can develop a good image & trust among itscustomers.customers.

Stability of Bank is strength of any bank. The Bank of PunjabStability of Bank is strength of any bank. The Bank of Punjabhas growth since its establishment.has growth since its establishment.

The Bank of Punjab provides the loan facility on sound basisThe Bank of Punjab provides the loan facility on sound basisthat is very crucial for any bank to recover the loan. The Bankthat is very crucial for any bank to recover the loan. The Bankof Punjab has conservative policy for advances. So there areof Punjab has conservative policy for advances. So there arevery few bad debts.very few bad debts.

Personal selling has key role in banking services. The officersPersonal selling has key role in banking services. The officers

of the Bank of Punjab go to the potential customers to developof the Bank of Punjab go to the potential customers to developthe business. By the relationship with customers, they achievethe business. By the relationship with customers, they achievethe deposit targets.the deposit targets.

The promotion criteria of the bank are on the basis of theThe promotion criteria of the bank are on the basis of theefficiency and passing the diploma examination of Institute ofefficiency and passing the diploma examination of Institute ofBankers, Pakistan.Bankers, Pakistan.


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WEAKNESSWEAKNESS The Bank of Punjab is centralized organization. The authorityThe Bank of Punjab is centralized organization. The authority

is not given to the branch level. Branch Managers have to takeis not given to the branch level. Branch Managers have to takepermission from the Regional office or Head office for creditpermission from the Regional office or Head office for creditexcept Quick Cash. Managers had to get permission if theyexcept Quick Cash. Managers had to get permission if theyhave to given more rate of profit to the customers. So thehave to given more rate of profit to the customers. So thecustomers have to wait for days, which may cause the changecustomers have to wait for days, which may cause the change

of customers. Managers cannot negotiate with customersof customers. Managers cannot negotiate with customerswithout the permission of Head office.without the permission of Head office. The Bank of Punjab has less modern technology. Most ofThe Bank of Punjab has less modern technology. Most of

branches are computerized but not online. Due to lack ofbranches are computerized but not online. Due to lack ofonline facility, the banks services are low and foreign banksonline facility, the banks services are low and foreign banksand other online banks have large market share. In this eraand other online banks have large market share. In this era

modern technology like Online and ATM are very necessary formodern technology like Online and ATM are very necessary forcompetition.competition.

Salaries of the officers and staff members are less as comparedSalaries of the officers and staff members are less as comparedto other private banks.to other private banks.

The Bank of Punjab has very less promotional activities. TheirThe Bank of Punjab has very less promotional activities. Their

advertising campaign is very weak. They only use personaladvertising campaign is very weak. They only use personalsellin and some news a ers advertisements.sellin and some news a ers advertisements.


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CONTDCONTD

It has been observed that most of the staff memberIt has been observed that most of the staff memberknowledge is limited. They only know their routineknowledge is limited. They only know their routineduties. If any thing other than normal routine occurs,duties. If any thing other than normal routine occurs,they are confused.they are confused.

It has a nonIt has a non--professional management.professional management. There is Lack of modern banking techniques like ATMs,There is Lack of modern banking techniques like ATMs,

online banking, credit cards, and traveler cheques.online banking, credit cards, and traveler cheques.

Employees are unsatisfied due to unfair promotionEmployees are unsatisfied due to unfair promotion

system. There is not a right criterion for promotion;system. There is not a right criterion for promotion;many of vacancies are filled at approach basis.many of vacancies are filled at approach basis.

Employees have Lethargic attitude especially in mainEmployees have Lethargic attitude especially in mainbranchesbranches..


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OPPERTUNITYOPPERTUNITY

Although commercial banks have launched may products but aAlthough commercial banks have launched may products but agap existing between the customers want and what the banksgap existing between the customers want and what the banksare providing. This is an opportunity for the Bank of Punjab toare providing. This is an opportunity for the Bank of Punjab tomove in and fill the gap between the ideal bank and the currentmove in and fill the gap between the ideal bank and the currentservice offerings by aggressive advertising, consumers friendlyservice offerings by aggressive advertising, consumers friendlyattitude products and service for attracting customers.attitude products and service for attracting customers.

The bank has opportunity to expand the branch network allThe bank has opportunity to expand the branch network allover the county, and it would be able to develop business andover the county, and it would be able to develop business andcan start many other schemes for investment.can start many other schemes for investment.

The Bank of Punjab has opportunity to use latest technology forThe Bank of Punjab has opportunity to use latest technology forproviding good services to customers.providing good services to customers.

There is an opportunity for more businesses if the BOP opensThere is an opportunity for more businesses if the BOP opensits branches in foreign countries.its branches in foreign countries.

There is an opportunity for more businesses if the BOP offeredThere is an opportunity for more businesses if the BOP offeredcredit cards.credit cards.

Different multinational are establishing their business inDifferent multinational are establishing their business inPakistan. So there is a lot of potential for future businessesPakistan. So there is a lot of potential for future businesses..


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CONTD.CONTD.

The presence of more technical and professional staff canThe presence of more technical and professional staff canhelp out the bank in making progress especially inhelp out the bank in making progress especially inmarketing department which should have effect onmarketing department which should have effect onBanks policy making, making schemes of bankBanks policy making, making schemes of bank

successful and can stabilize down its position.successful and can stabilize down its position. BOP should concentrate more industrial sector andBOP should concentrate more industrial sector and

agriculture sector. They should provide finances to theagriculture sector. They should provide finances to thefarmers both on short term and long term basis.farmers both on short term and long term basis.

New schemes for deposits and finances should beNew schemes for deposits and finances should beintroduced regularly.introduced regularly.

Proper advertising of the products of the bank.Proper advertising of the products of the bank.


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THREATSTHREATS

The salaries of the officers and staff members are less asThe salaries of the officers and staff members are less ascompared to other banks. It may cause experts drain from thecompared to other banks. It may cause experts drain from theBank of Punjab to other banks.Bank of Punjab to other banks.

Expansion of newly establishing banks like Faysal Bank, PICICExpansion of newly establishing banks like Faysal Bank, PICICCommercial Bank, Union Bank, Bank Alfalah, AskariCommercial Bank, Union Bank, Bank Alfalah, Askari

Commercial Bank etc., and their better performance may causeCommercial Bank etc., and their better performance may causeloss of the market share of the BOP. According to the Worldloss of the market share of the BOP. According to the WorldBank report, the Pakistan has become an over bankedBank report, the Pakistan has become an over bankedeconomy. With the cutthroat competition for deposits in theeconomy. With the cutthroat competition for deposits in theindustry, the battle is on for the market share. The concept ofindustry, the battle is on for the market share. The concept of24 hrs banking, telephone and online banking, ATM and credit24 hrs banking, telephone and online banking, ATM and credit

card are a direct result of the intense competition. But BOP iscard are a direct result of the intense competition. But BOP isfar behind the above mentioned services and will not providefar behind the above mentioned services and will not providebetter services as compared to other banks; it will lose itsbetter services as compared to other banks; it will lose itsmarket share.market share.

The Bank of Punjab is also forced to give loans on potentialThe Bank of Punjab is also forced to give loans on potential

basis. Due to this the recovery of such loans may become verybasis. Due to this the recovery of such loans may become verydifficult.difficult.


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CONTD..CONTD..

Promotional activities of the BOP are not sufficient. DuePromotional activities of the BOP are not sufficient. Dueto this it may lose market share.to this it may lose market share.

Due to low entry barriers, there are more competitors;Due to low entry barriers, there are more competitors;

also the global competition has increased.also the global competition has increased. Because of unfair promotion system and absence ofBecause of unfair promotion system and absence of

proper recruitment techniques competent persons mayproper recruitment techniques competent persons maymove to o Financial environment is changing day to day,move to o Financial environment is changing day to day,new technologies are introduced by foreign banks thatnew technologies are introduced by foreign banks thatprovide customer efficient and quick services.provide customer efficient and quick services.

There is a need of proper marketing because certainThere is a need of proper marketing because certainschemes face failure due ignoring marketing of theschemes face failure due ignoring marketing of theproduct. Failure of the schemes or products is a threatproduct. Failure of the schemes or products is a threatbecause it becomes a cause of decrease in profits.because it becomes a cause of decrease in profits.


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AREAS FOR IMPROVEMENTSAREAS FOR IMPROVEMENTSFOR BOPFOR BOP

STRUCTURE> Workspecialization

>

Departmentalization> Chainofcommand> Spanofcontrol

> Centralization> Formalization

> Job redesign

PEOPLE> Attitudes> Expectations

> Perceptions> Behavior

TECHNOLOGY

> Work processes> Methods

> Equipments


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SUGESTIONS TO IMPROVESUGESTIONS TO IMPROVE

The banks overall objectives and strategies should beThe banks overall objectives and strategies should beformulated.formulated.

Major objectives should be allocated among divisionalMajor objectives should be allocated among divisionaland departmental units.and departmental units.

Regional chiefs collaboratively set specific objectives forRegional chiefs collaboratively set specific objectives fortheir units with their branch managers.their units with their branch managers. Specific objective must be collaboratively set with allSpecific objective must be collaboratively set with all

department members.department members. Defining how objectives are to be achieved, are specifiedDefining how objectives are to be achieved, are specified

and agreed upon by branch managers and employees.and agreed upon by branch managers and employees. The action plans should be implemented.The action plans should be implemented. Progress toward objectives must be periodicallyProgress toward objectives must be periodically

reviewed, and feedback is provided.reviewed, and feedback is provided. Successful achievement of objectives must be reinforcedSuccessful achievement of objectives must be reinforced

by performance based rewards.by performance based rewards.

Documents

History of Bank of Punjab