The Bank of Punjab
THE BANK OF PUNJAB MAIN BRANCH
LAHORE
Internship Report
ON BUSINESS PRACTICES AT THE BANK OF PUNJAB
SUBMITTED TO:MADAM AYESHA AZIZ
SUBMITTED BY:RAO ISHFAQ AHMADCIIT/SOO4-MBA-028/LHR
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The Bank of Punjab
ACKNOWLEDGEMENT
I am really pleased here to acknowledge the sheer efforts and extreme of numerous
people, those who have provided me their relentless service in the completion of my
internship report on “Business practices at The Bank of Punjab”.
I would like to express my gratitude to my advisors in The Bank of Punjab who support
me to under stand the working in the bank, during my internship. They really helped me
a lot to gain practical knowledge about general banking and corporate banking. I am
also grateful to Mr. Mazhar (Manager) and all my supervisors during internship period.
Without their guidance, this exercise of internship would not have resulted in a success.
Secondly I would like to thank my advisor Madam Ayesha for her assistance and
inspiring attitude. I am highly obliged to my respectable advisor and state my gratitude
for her valued guidance and her concern about my internship.
Rao Ishfaq Ahmad
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The Bank of Punjab
DEDICATION
I dedicate this report to my loving parents without their guidance I
would have gone astray.
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The Bank of Punjab
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The Bank of Punjab
Table of Content
EXECUTIVE SUMMARY...........................................................................................5
INTRODUCTION TO THE BANK OF PUNJAB..................................................6
HISTORY.........................................................................................................................6VISION.............................................................................................................................6MISSION STATEMENT...................................................................................................7
BANK PROFILE..........................................................................................................8
BOARD OF THE DIRECTORS.........................................................................................8MANAGEMENT.............................................................................................................10
ORGANIZTIONAL CHART....................................................................................14
BRANCH HIERARCHY....................................................................................................17
COMPARATIVE ANALYSIS..................................................................................18
BANKING INDUSTRY..........................................................................................................18COMPARISON WITH OTHER BANKS.....................................................................................18CURRENT FINANCIAL POSITION OF THE BANK OF PUNJAB..................................................26
SIX YEAR AT GLANCE..........................................................................................30
BUSINESS PROCESS ANALYSIS......................................................................32
1. ATM Facility.....................................................................................................322. Online banking.................................................................................................343. Consumer Financing........................................................................................354. Agriculture Financing.......................................................................................495. Corporate Financing........................................................................................506. Trade Services.................................................................................................50
OBECTIVES OF INTERNSHIP......................................................................................54
LEARNING AS A STUDENT INTERN................................................................56
DUTIES............................................................................................................................56NEW KNOWLEDGE ACQUIRED...........................................................................................57
SWOT ANALYSIS.........................................................................................................63
RECOMMENDATIONS..................................................................................................66CONCLUSION...............................................................................................................66BIBLIOGRAPHY..............................................................................................................67GLOSSARY....................................................................................................................68Appendix......................................................................................................................71
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The Bank of Punjab
EXECUTIVE SUMMARY
This report is about The Bank of Punjab, its history, and the functions of the bank.
This report contains detail about what I have learned in my eight-week internship in
The Bank of Punjab. It starts with the short history and background and brief
introduction about the management of The Bank of Punjab. The vision of the bank
along with its mission and existing status has also been discussed. This report
contains detail about “business practices in The Bank of Punjab.
The purpose of this exercise was to learn while working in the practical field.
Specially, the knowledge related to the General Banking, foreign exchange and
advances. It has really helped me observe to what extent the bookish knowledge is
being practiced in real field.
This report contains the Comparison of other banks with the bank of Punjab, current
financial position of the bank, the business process of the bank and all my learning,
during the internship period.
Rao Ishfaq Ahmad
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The Bank of Punjab
Introduction to The Bank of Punjab
The Bank of Punjab is working as a scheduled commercial bank with its network of 254
branches at all major business centers in the country. M/S PACRA has awarded the
Bank with the credit rating AA- for Long term and A1+ for Short term, based on its
financial results for the year ended as on 31st December 2004. The Bank provides all
types of banking services such as Deposit in Local Currency, Client Deposit in Foreign
Currency, Remittances, and Advances to Business, Trade, Industry and Agriculture.
The Bank of Punjab has indeed entered a new era of science to the nation under
experience and professional hands of its management. The Bank of Punjab plays a vital
role in the national economy through mobilization of hitherto untapped local resources,
promoting savings and providing funds for investments. Attractive rates of profit on all
types of deposits, opening of Foreign Currency Accounts and handling of Foreign
Exchange business such as Imports, Exports and Remittances, Financing, Trade and
Industry for working capital requirements and money market operations are some
facilities being provided by the Bank. The lending policy of Bank is not only cautious and
constructive but also based on principles of prudent lending with maximum emphasis on
security. As agriculture is considered as backbone of our economy the Bank of Punjab
has introduced "Kissan Dost Agriculture Finance Scheme" to small farmers.
HISTORY
Established in 1989, in pursuance of The Bank of Punjab Act 1989 and was given the
status of scheduled bank in 1994. It is principally engaged in commercial banking and
related services with its registered office at 7-Egerton-road Lahore.
VISION
To be cus tomer focused bank w i th se rv ice exce l lence
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The Bank of Punjab
MISSION STATEMENT
To exceed the expec ta t ions o f our s takeho lders by leverag ing our
re la t ionsh ip w i th the Government o f Pun jab and de l i ve r ing a complete
range of professional solutions with a focus on programmed driven products & services
in the Agriculture and Middle Tier Markets through a motivated team.
OUR VALUES
Our Customers as Our first priority
Prof i tab i l i ty for the prosperity of our stakeholder
that allows us to constantly, improve
and succeed
Corporate soc ia l to Enrich the Lives of community where
responsib i l i ty we operate
Recogni t ion and for talented and high performing
reward employees
Excel lence in every thing we do
In tegr i ty in all our dealing
Respect for our customer and each other
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The Bank of Punjab
Bank Profi le
BOARD OF The DIRECTORS
Mr. Shahzad Hassan Pervez
Chai rman
A Serving Grade-22 Govt. Officer, having wide management &
administrative experience. Last assignment Secretary Ministry of
Science & Technology Government of Pakistan.
Mr. Hamesh Khan
Pres ident
Professional Banker. MBA from USA.
Mr. Sa lman S iddique
Director
Serv ing as Secre ta ry F inance - Government o f Pun jab
Mr. S ikandar Mustafa Khan
Director
An eng ineer by p ro fess ion – Cha i rman & Ch ie f Execu t i ve Mi l l a t T rac to rs L im i ted .
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The Bank of Punjab
Mian Muhammad Lat i f
D i rector
A prominen t Indus t r ia l i s t - Chenab Group .
Syed Salman Al i Shah
Director
An Economis t by p ro fess ion ho ld ing PhD ( f inance) f rom Ke l ley Schoo l o f Bus iness Admin is t ra t ion , Ind iana Un ivers i t y , USA.
Mr. Shehzad Al i Mal ik
Di rector
A lead ing Indus t r ia l i s t f rom the Guard Group o f Compan ies .
Mr. Gohar E jaz
Di rector
Chie f Execu t i ve E jaz Group o f Compan ies .
Mr. Qaisar Zu l faqar Khan
Director
A renowned agr i cu l tu r i s t . Gradua te f rom Cambr idge .
Mr. Jahangi r S idd iqui
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The Bank of Punjab
Director
A prominen t Inves tment Adv isor .
MANAGEMENT
Pres ident Secretar ia t
Mr. Hamesh Khan Pres iden t
Mrs . An jum Ami r Pr inc ipa l S ta f f O f f i ce r
In format ion Technology Div is ionMr. An is Iqba l E .V .P . / Genera l ManagerMr . Abdu l Rash id Khan S.V .P . / In -charge
Adminis t ra t ion Div is ion
Mr. Aami r I f t i khar AhmedGenera l ManagerMr . R iaz Akh ta r E .O.C. / Ch ie f Manager
Operat ion Div is ion
Mr. Javed Ahmed Khawa ja
E.V .P . / Genera l Manager
Mr . A thar Az iz Dogar O.O.C. / Ch ie f ManagerMr . Sa j id Ar i f Noman i E .O.C. (Consu l tan t )
Finance Div is ion
Mr. Nadeem Ami r Of f i c ia t ing Genera l ManagerMr . Rash id Mehboob F inanc ia l Ana lys t Mr . Nadeem Ami r A .V .P . / Ch ie f Manager
In ternat ional & Treasury Div is ion
Mr. Muhammad Sa l im Mi rza
E.O.C. / Genera l Manager
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The Bank of Punjab
Mr. Babar Saeed Khan A.V .P . / Manager ( In te rna t iona l D iv is ion)Mrs . Saba Far rukh A.V .P /Ch ie f Dea le r
Audi t & Inspect ion Div is ion
Mr. Muhammad Han i f Head Mr . Raza Saeed V .P
Credi t R isk Management Div is ion
Mr. Az iz U l Hameed E.O.C. / Count ry R isk ManagerMr . Ab id Mahmood V.PMr . Ha feez Ud D in V.PMr . Tar iq Javed Bu t t V .P
Specia l Asset Management Div is ion
Mr. Shaheen Nazar Quresh i
E .V .P / Genera l Manager
Mr . B i la l Husna in Chandan
E .O.C
Liab i l i ty & Consumer Products Development Div is ion
Mr. Mahmood Sad iq Khan
E.O.C. / Genera l Manager
Mr . Ha j i Muhammad As lam
V.P
Commerc ia l Asset Development & Market ing Div is ion
Mr. Haroon Az iz E .O.C. / Genera l ManagerMr . Sa j jad Hussa in S.V .P
Products / SME Div is ion
Mr. Muhammad Shoa ib Quresh i
Genera l Manager
Corporate Banking Head
Mr. Muhammad Hassan E .O.C. / Corpora te Head, Fa isa labad /
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The Bank of Punjab
Khan Mul tanMr . Kha l id Qa iyum E.O.C. / Corpora te Head, (Nor th ) I s lamabad
Trade Processing Centre
Mr. Muhammad Han i f E .O.C. / Execu t i ve In -chargeMr . Ta jammal Hussa in A.V .P
Off icer ’s Tra in ing Inst i tu te
Mr. Naveed Hafeez Sha ikh
S.V .P . / Admin is t ra to r
Mr . Tar iq Mahmood Mugha l
A .V .P
Law Depar tment
Si rdar Ahmed Jamal Sukhera
Lega l Consu l tan t / Coord ina to r
Ms. Zub ia Ramzan In -charge
BOP 1st Punjab Modaraba
Mr. Sa lman Saeed Ch ie f Execu t i ve Mr . Muhammad Sa lman Corpora te Secre ta ry
Agr icu l ture Credi t Depar tment
Mr. Muhammad Javed Muzaf fe r
S .V .P . / Head
Mr . Moazzam Mahmood Maneka
E.O.C / Marke t ing Coord ina to r
Shares Depar tment
Mr. Muhammad Iqba l A .V .P . / Ass is tan t Secre ta ry
Compl iance Cel l
Qaz i Muhammad La t i f E .O.C. / Ch ie f Compl iance Of f i ce r
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The Bank of Punjab
Regional Of f ice Lahore
Mr. Za lma i Azam V.P. / Reg iona l Ch ie fMr . Azhar Nawaz A .V .P . / Reg iona l Manager
Regional Of f ice Rawalp indi
Mr. Ami r Mumtaz A.V .P . / Reg iona l Ch ie fMr . Abdu l Sa lam Reg iona l Manager
Regional Of f ice Fa isa labad
Mr. Ami r A l i Sad ique V.P . / Reg iona l Ch ie fMr . Saeed Ahmad Rah i Reg iona l Manager
Regional Of f ice Guj ranwala
Mr. S .M.A t i f E .O.C. / Reg iona l Ch ie fMr . Sar f raz Ahmad Reg iona l Manager
Regional Of f ice Mul tan
Mr. Naeem u l Hassan Mehmood
A .V .P . / Reg iona l Ch ie f
Mr . I j az Iqba l Reg iona l Manager
Regional Of f ice Karachi
Mr. Ami r Hassan A .V .P / Reg iona l Ch ie fMr . Inam ud D in Akbar Manager
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The Bank of Punjab
ORGANIZTIONAL CHART
The Bank of PunjabOrganizational chart
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Chairman & Board of Directors
Managing Director
Regional Office Lahore
GM Operation
GM Treasury
GM AdminGM Finance
GM Liability
GM Special
Mgt. Div.
GM IT.Country Risk Mgr.
GM SME Div.
Regional Office Multan
Regional Office FSD.
Regional Office RWP.
Regional Office Karachi
Regional Office
Gujranwala
254 Branches
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The Bank of Punjab
LAHORE REGION
In Lahore region The Bank of Punjab have 65 branches out of which 11 branches are
dealing in foreign exchange. In Lahore region regional office is at 7 Egerton roads
Lahore.
FAISALABAD REGION
In Faisalabad region The Bank of Punjab have 38 branches, out of which 4 branches
are dealing in foreign exchange.
GUJRANWALA REGION
In Gujranwala Region, there are 45 branches. In this region 5 branches are providing
foreign exchange banking facility.
RAWALPINDI REGION
In Rawalpindi region BOP have 41 branches with 4 branches dealing in foreign
exchange.
MULTAN REGION
In Multan region Bop have 60 branches, out of which 7 branches are providing the
foreign exchange services facility.
KARACHI REGION
There are only four branches in this region. All these branches are dealing in foreign
exchange.4 branches
.
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The Bank of Punjab
Branch hierarchyMain Branch Lahore
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ManagerAdvances
Forex. ManagerBranch Manager
Chief Corporate
AdvancesDept.
Accounts Dept.
Remittances Dept.
Forx. Dept.
Acc. opening Dept.
Cash/Deposit Dept.
Consumer Finances
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The Bank of Punjab
Comparative Analysis
Banking Industry
Banking is one of the most sensitive businesses all over the world. Banks play very
important role in the economy of a country and Pakistan is no exemption. Banks are
custodian to the assets of the general masses. The banking sector plays a significant
role in a contemporary world of money and economy. It influences and facilitates many
different but integrated economic activities like resources mobilization, poverty
elimination, production and distribution of public finance. It is purchase of car or building
of a home, banks are always there to provide the services. It is playground or any
educational or healthy societal activities the money of banks nurtures them. It is an
industrial project or agricultural development of the country the sponsor-ship of banks is
very much involved. Banks play very positive and important role in the overall economic
development of the country.
Pakistan has a well-developed banking system, which consists of a wide variety of
institutions ranging from a central bank to commercial banks and to specialized
agencies to cater for special requirements of specific sectors. The country started
without any worthwhile banking network in 1947 but witnessed phenomenal growth in
the first two decades. By 1970, it had acquired a flourishing banking sector.
Comparison with other banks
Nationalization of banks in the seventies was a major upset to domestic banking
industry of the country, which changed the whole complexion of the banking industry.
With irrational decision at the top all the commercial banks were made subservient to
the political leadership and the bureaucracy. Specialized banking institutions were
already working in the public sector. The new accountability paradigm changed the
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The Bank of Punjab
business ethics in the banking industry, and with this change started the disaster.
Nationalization of banking industry was accompanied by violent changes in the external
value of rupee. The commercial banks thus lost their assets management equilibrium,
initiative and growth momentum. They ceased to be a business concern and became
big bureaucracies. This was accompanied by indiscreet loaning under political pressure.
They suffered from three terminal diseases: non-performing loans; higher intermediation
cost.
The era of nineties was the climax of privatization, deregulation and restructuring in the
domestic banking industry and financial institutions. The Muslim Commercial Bank was
the first bank to privatize. Followed by Allied Bank limited, United Bank Limited and
now the Habib Bank Limited have been privatized. One thing good for that particular
period was the recruitment of fresh officers in the domestic banking industry through
well-organized policies of Banking Council. With the decay of Banking Council there
was flood of insincere, nonprofessional, incompetent candidates directly appointed/
recruited in all the domestic banks of the country.
Public sector banks
National Bank of PakistanNBP
First Women Bank Limited FWB
The Bank of Khyber KB
The Bank of Punjab BOP
The government of Pakistan permitted small private sector banks to operate, which
indulged in doubtful policies to promote business. The public sector banking, which
constituted the backbone, thus continued to suffer because of their approach, size and
carried over liabilities. Mehran Bank is the prime example of that kind of lax banking in
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The Bank of Punjab
the country, which ultimately merged into National bank of Pakistan i.e. last resort of
domestic banking industry.
Local Private Banks
Askari Commercial Bank Limited
Bank Al-Falah Limited
Bank Al Habib Limited
Bolan Bank Limited
Faysal Bank Limited
Metropolitan Bank Limited
Platinum Commercial Bank Ltd
Prime Commercial Bank Limited
Saudi Pak Commercial Bank Ltd
PICIC Commercial Bank Limited
Soneri Bank Limited
Union Bank Limited
Muslim Commercial Bank Limited
Allied Bank of Pakistan
Union Bank Limited
Mashreq Bank
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The Bank of Punjab
In the meanwhile, western banks started entering into the business. They, with the
support of ruling elite, concentrated on the big business, leaving the routine business to
the local banks. This reduced the profitability of the local banks.
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The Bank of Punjab
Foreign Banks
ABN Amro Bank
Al Baraka Islamic Bank
American Express
The Bank of Tokyo Mitsubishi
CITI Bank
Credit Agricole Indo Suez
Deutsche Bank
Doha Bank
Emirates Bank
Habib Bank A. G. Zurich
Hong Kong Shangai Banking
Corporation
IFIC
Mashreq Bank PJSC
Oman Bank
Rupali Bank
Standard Chartered Bank
Special Banks
Zari Tarqiati Bank Ltd.
Industrial Development Bank of
Pakistan
Punjab Provincial Cooperative Bank
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The Bank of Punjab
Limited
Comparative Analysis of Domestic Banking Industry of Pakistan (Rs. million)
Bank Deposit Advances Investments
ACB 51,732 30,035 26,759
BAH 34,240 23,775 18,831
BOP 23,767 6,6218,295
BB7,761 3,298 1,328
FB 24,554 21,935 6,842
UNION
BANK
328,182 167,523 142,877
KB 2,640490
2,118
MB 5,079 3,532 856
Metro 28,515 19,444 15,013
MCB 182,706 78,924 89,610
NBP 362,866 140,547 143,525
PCB 21,155 10,876 10,306
PB 14,640 9,016 7,534
SPB 12,341 8,5226,365
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The Bank of Punjab
SB20,545
11,3789,844
UB37,760 28,890 11,822
UBL154,915 74,117 69,385
Comparative Analysis of Earning per Share of domestic Banking Industry of
Pakistan
Name of the Bank 1Q2003 1Q2004 Growth
Askari Comm. Bank 2.16 2.43 13%
Bank Al Habib 0.70 1.44 107%
Bank of Punjab 0.23 1.17 407%
Bolan Bank 0.07 0.10 43%
Faysal Commercial
Bank
1.91 1.39 -28%
KASB Bank 0.16 0.05 -68%
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The Bank of Punjab
MCB 2.21 1.92 -13%
Meezan Bank 0.17 0.38 126%
Metropolitan Bank 1.09 1.68 54%
PICIC Commercial
Bank
0.56 1.05 88%
Prime Commercial
Bank
0.46 0.76 66%
Saudi Pak Commercial
Bank
0.92 0.36 -61%
Soneri Bank 0.60 1.21 102%
Union Bank 0.54 0.62 13%
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The Bank of Punjab
Above chart show the growth of all local banks. The bank of Punjab has highest growth
among its local competitors.
Gross Assets of Different Domestic Banks of the Country (Rs. in Million)
Gross Assets
Bank 2002 2003
ACB 70,313 85,387
BAH 49,437 58,148
BOP 29,525 43,621
BB 10.595 11,726
FB 36,671 47,606
KB 4,037 8,990
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The Bank of Punjab
MB 6,971 11,102
Metro 41,381 58,982
MCB 235,139 272,324
NBP 432,803 471,860
PCB 27,982 40,134
PB 21,637 29,566
Total 955,907 1,139,446
Administrative Expenses of Different Domestic Banks
Bank 2002 2003
ACB 1,090 1,436
BAH 760 1.062
BOP 900 999
BB 380 375
FB 619 835
KB 204 327
MB 195 255
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The Bank of Punjab
Metro 513 662
MCB 8,079 7,575
PCB 326 564
PB 512 719
Total Equity of Different Domestic Banks (Rs. Million)
Bank 2002 2003
BB 1,113 1,092
FB 4,120 5,080
KB 593 1,216
MB 1,476 1,637
Metro 2,074 2,753
MCB 6,314 7,726
NBP 14,279 18,134
PCB 1,323 1,784
PB 1,380 1,536
Current Financial position of The Bank of Punjab
Director’s Report
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The Bank of Punjab
On behalf of the Board of Directors, I am pleased to present accounts of the Bank of
Punjab for the half year ended June 30, 2005.
During six months period under review, Pakistan’s economy has gained significant
momentum with broad based economic growth in all sectors, which can be attributed to
consistent application of wide-ranging structural reforms, prudent macro economic
policies, confidence in private sector and financial discipline. Resultantly, the country
economic growth rate has exceeded eight percent and the economy has positioned
itself as the second fastest growing economy in Asia.
Manufacturing & agricultural sectors exceeding their targeted growth rates denote that
positive affects of growth in these important sectors of our economy shall be transferred
to other sectors of the economy augmenting their growth in periods to come.
It gives me immense pleasure to inform you that your bank has achieved an un-
precedented results for the six month period under review by earning highest ever profit
(both before & after tax) & EPS for any half yearly period since its operations. Profit
(before tax) of Rs.1,908 million indicates growth of Rs.791 million (71%) from last year
corresponding period figure of Rs.1,117 million. While Profit (after tax) of Rs. 1,531
million shows increase of Rs.644 million (73%) resulting in EPS of Rs.8.47. This
impressive performance is essentially ascribable to increase in net markup income of
Rs.789 million (101%) showing consistence in banks reliance on earning from its core
activity. Total asset base of the bank has risen by Rs.19,229 million to Rs.85,548
million. Advances have reached a level of Rs. 46,840 million, signifying growth of 19%
in high return asset of the bank from the figure on December 31, 2004, while deposits
have increased to Rs.70, 481 million showing growth of 29%. Bank.s determined focus
on improving its deposits base has resulted in phenomenal rise in deposits, which apart
from providing much required liquidity also lowered bank.s advances to deposits ratio to
a healthy & satisfactory %age of 66%.
Owing to splendid performance & sound financial footing M/s PACRA have upgraded
long term credit rating of your bank from A+ to AA- (double A minus) and short term
rating from A1 to A1+ which is the highest benchmark in short term rating scale. Your
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The Bank of Punjab
bank is in compliance with all regulatory rules & regulations including compliance with
recommendations of Basel-II Committee. Keeping in view excellent results the Board of
Directors of your bank have approved an interim dividend for its shareholders in the
form 30% stock dividend. Apart from remunerating stakeholders this bonus issue shall
make your bank in compliance with minimum paid-up capital requirement of Rs. 2,000
million well before specified date.
Management is consistently in pursuit of opportunities to improve the Bank.s
performance and improve operational aspects of the bank, both qualitatively and
quantitatively, benefits of which shall accrue in future.
We extend our utmost appreciation to the management for their record performance.
The Board of Directors is also grateful to the Government of Punjab for its consistent
support, State Bank of Pakistan for its guidance, valued customers for their patronage
and business and to its staff for their untiring effort to make the organization a success.
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The Bank of Punjab
THE BANK OF PUNJABBALANCE SHEET AS AT JUNE 30, 2005 (UN-AUDITED)
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The Bank of Punjab
ASSETS
June December30, 2005 31, 2004
Note (Rupees in thousand)
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The Bank of Punjab
Cash and bank balances with treasury banks 7,944,933 5,579,566
Balances with other banks 4,593,346 2,118,242
Lendings to financial institutions 7,867,739 1,019,488
Investments 5 14,587,620 16,197,505
Advances 6 46,840,452 39,438,923
Other assets 2,021,944 1,277,201
Operating fixed assets 1,692,930 689,48685,548,964 66,320,411
LIABILITIES
Bills payable 333,479 267,113
Borrowings from financial institutions 3,027,676 2,831,605
Deposits and other accounts 70,480,955 54,724,311
Sub-ordinated loans - -
Liability against assets subject to finance lease 61,989 81,795
Other liabilities 743,702 567,540
Deferred tax liability 1,373 8,96474,649,174 58,481,328
NET ASSETS 10,899,790 7,839,083
REPRESENTED BY
Share capital 1,807,476 1,506,230
Reserves 3,011,642 2,770,645
Unappropriated profit 1,132,764 143,5905,951,882 4,420,465
Surplus on revaluation of assets 4,947,908 3,418,618
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The Bank of Punjab
Contingencies and commitments 710,899,790 7,839,083
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The Bank of Punjab
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The Bank of Punjab
Six year at glance
Profitability related ratios
Balance sheet & Relevant Ratios
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The Bank of Punjab
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The Bank of Punjab
Business process analysis
SERVICES
The Bank of Punjab provide the following services to its customers
1. ATM Facility
The Bank of Punjab provides ATM Card facility to its customer, using M net system, giving
to customer 24-hour access to their accounts from any ATMs.
Safety Tips
Guard Your Card
To avoid any damage keep your Online Cash ATM card in a safe place.
Sign on the back immediately after receiving your ATM card.
Never write your PIN or share it with anyone including the bank staff.
Don’t use your phone number or other personal information’s like your date of
birth etc. as PIN.
You can make maximum of three PIN entries (i.e. two entries in case you
enter the wrong PIN first time) after which your card will be captured by the
ATM machine.
Be Bright
In case you need to use an ATM after dark always choose an ATM, which is
well lit.
It is advised to retain the receipts until you match them against your account
statement.
Stay Alert
It is safe to check your surrounding before using ATM. Visit another ATM if
the machine is obstructed or poorly lit.
Shield the screen and keypad so anyone waiting to use the ATM cannot see
your PIN or transaction.
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The Bank of Punjab
On realizing anything or someone suspicious in the area cancel your
transaction and leave right away.
Don’t Flash Your Cash
Count your cash before leaving the ATM. Don’t try to count your money after
leaving the ATM or at any other insecure place.
Make sure to keep your money, receipt, and card safe in the wallet after
making a withdrawal.
Act Immediately
Pick your cash or reclaim your card in 20 seconds otherwise the ATM
machine will capture your card.
Remove your card immediately because the ATM will only dispense cash
after you remove the card.
ATM Charges
Sr. Transaction Type Charges
1 Issuance of ATM Rs.250/- Per Card (except for
staff)
2 Annual Charges Rs.250/- ATM Card (except for
staff)
3 Cash Withdrawals “Self Customer +ATM” Rs.10/- per Transaction(except for
staff)
4 Cash Withdrawals “Self Customer +
Other ATM”
Rs.30/- per Transaction (except for
staff)
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The Bank of Punjab
5 Cash Withdrawals “Other Customer +
Self ATM”
Rs.15/- per Transaction (except for
staff)
6 Balance Query Rs.10/- per Transaction (except for
staff)
7 Mini Statement Rs.10/- per page (except for staff)
8 80 column Statement Rs.15/- per page (except for staff)
2. Online banking
The Bank of Punjab provides the Online Banking Facility to its account holders at 147
branches all over Pakistan. Cash may be accepted at a branch for crediting accounts at
another branch; a branch can also pay the Cheques by debiting the customer’s account at
another branch. There are 147 branches, which are providing online facility at this time.
Following facilities are available at Bank of Punjab’s Online Program for its customers:
1. Payments of Cheques.
2. Cash Receipts.
3. Transfer of Funds through Cheques or Cash between Branches.
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The Bank of Punjab
Online banking charges
Sr. Transaction Type Charges
12
For Transfer- Account to Account 1) For Cash Transactions;
i) Up to Rs.500, 000/-
ii) Above Rs.500, 000/- to Rs.1000, 000/-
iii) Above Rs.1000, 000/-
Rs.50
0.02% Min Rs.50/-
Rs.100/- (Flat)
Rs.200/- (Flat)Note 1) (Staff members will be exempted)2) (The charges will be applicable on depositor in case of deposits and from payee in case of cheque encashment)
3. Consumer Financing
Consumer financing refers to any financing allowed to individuals by financial institutions to
meet their personal needs. It gives individuals the ability to generate funds for their
personal consumption by borrowing against future income. It can range from financing a
vacation, to buying a car or a house, etc.
Consumer financing department of The Bank of Punjab is offering loans under the following
schemes
BOP Quick Cash
BOP Aasaish Loan
BOP Car Loan
BOP House Laon
BOP Demand Finance
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The Bank of Punjab
BOP QUICK CASH
The Bank of Punjab QUICK CASH is a running finance facility provided to salaried
individuals through their bank accounts with the Bank for purchase of consumer items or
personal needs. The facility is an alternative to consumer financing offered by other banks
except it is R/F instead of Demand finance, which is more favorable to the borrower.
ELIGIBILITY CRITERIA
Between 25 and 55 years of age
Permanent employee of selected organizations having at least 3 years of
experience
Computerized National Identity Card holder
Net take home salary is Rs.15000/ - & above as mentioned on salary slip/
salary certificate (excluding benefits). For Govt. Employees net take home
salary is Rs.10, 000/-
Loan amount/Limit
Minimum amount is Rs.50, 000 and maximum amount is Rs. 200,000?
Tenure of Loan
Loan is available for one year, further renewable subject to satisfactory conduct of account.
Mark-up Rate
Most competitive rate in the market, which will be calculated on daily product basis, which
is
For senior Bureaucrats & Executive Average six months KIBOR+ 600BPS of
Corporate Client with floor rate of 14.5% p.a.
For all other client Average six month KIBOR + 600 BPS
With Floor rate of 16% p.a.
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The Bank of Punjab
Other Charges
Non-refundable fee Rs.450/
Processing Fee Rs. 1,850/
Documentation charges Rs. Actual
How Loan will be repaid
Loan will be repaid on Demand / Lump sum.
Pre-Sanction Document Requirements
Application Form
Copy of CNIC
2 recent photographs
Latest Salary Slip/Salary certificate on Company's letterhead
Latest Copy of utility Bills
Copy of service ID card
6 months A/C statement showing salary being credited
Post-Sanction Document Requirements
Two personal guarantees (expected incase of BOP employee)
Financing Agreement
D.P. Note
Letter of hypothecation
Post Dated Cheques
White Documents
I. Letter Of authority
II. Authorization /consent
III. Letter of Arrangement
IV. Debit Authority
V. Letter of Installment
VI. Under taking regarding KIBOR
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The Bank of Punjab
BOP AASHAISH LOAN
0% Mark-Up (12 months)
0% Down Payment
FREE Home Delivery
Financing Tenures of 18, 24 & 36 months are also available with nominal
markup
Easily Affordable & Flexible Installments
Quick Processing
No Hidden Cost, No Insurance cost
Product
The Bank of Punjab Aasaish Loan is Demand finance facility for purchase of consumer
durable goods like TV, Refrigerators, Mobiles, Microwave Ovens, and Fans, Audio/Video
system
ELIGIBILITY CRITERIA
Salaried Person
Confirmed permanent employee with one year experience
Salary is routed through a bank account
Private Employees
In addition to the above mentioned condition:
Having age between 25 and 59 years OR date of retirement, whichever is
earlier
Having minimum Take Home salary of Rs.10,000/-(Rupees Ten Thousand)
per month
Self-employed business / Professional
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The Bank of Punjab
In addition to above condition
Having age between 25 and 57 years (57 Years at maturity of facility).
Minimum 2 years in current business
Having minimum Net Income of Rs.15,000/-(Rupees Fifteen Thousand) per
month
Documentation required for processing
Application form
Copy of NIC/CNIC
Customer Consent Form, if loan is Rs. 50,000/- OR above
The Govt. employees will submit the following two documents in addition to
documents mentioned in Serial # 1, 2 & 3
i. Latest Salary Slip
ii. Employer Certificate on letterhead
Additional requirements for private employees
The Private employees will submit the following three documents in addition to above
documents mentioned.
Bank Statement for last 3 months
Latest Copy of utility bills (Electricity & phone)
Income Tax Return/Wealth Statement
Additional requirements for self-employed professional/business Person
The Self-employed Professional/Businesspersons will submit the following
documents in addition to documents mentioned above following documents are attached.
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The Bank of Punjab
Bank Statement for last 6 months
Latest Copy of utility bills (Electricity & phone) of residence
Income Tax Return/Wealth Statement
Business related documents
Documentary evidence in business or in the profession for the last 2 years
Proprietorship Certificate/Partnership deed
Copy of Professional Degree (For Professionals)
Latest utility bills of current business address
Processing Charges: Rs.190/-
Documentation Charges: Actual
POST-SANCTION DOCUMENT REQUIREMENTS
Financing Agreement
D.P. Note
Letter of hypothecation
Post Dated Cheques
White Documents
I. Letter Of authority
II. Authorization /consent
III. Letter of Arrangement
IV. Debit Authority
V. Letter of Installment
BOP CAR LOAN
Easily Affordable & Flexible Installments
Quick Processing
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The Bank of Punjab
Minimum Down Payment
Minimum Insurance
Product
BOP car loan is a Demand Finance Facility to Purchase Brand new locally manufactured/
Assembled Cars for Personal Use
ELIGIBILITY CRITERIA
Salaried Person
Permanent employees of selected organizations with at least 3 years of service with a
minimum take home salary of Rs.15, 000. For Govt. Employees, Net take home salary is
Rs. 12,000/-
Self-employed
Business person and professional having minimum 3 years in current business
Holder of computerized national identity card
Between 25 and 57 years of age
Loan Amount
Minimum amount is Rs.200, 000 and maximum amount is Rs. 1,000,000
Tenure of Loan
Loan is available for a period of minimum 3 years and maximum 5 years
Down Payment
Down payment is (10 to20%) of the value of the car
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The Bank of Punjab
Mark up rate charged
Most competitive rate available in the market
For all customers average six moths KIBOR+ 375 BPS with
With Floor rate 10% p.a.
Other Charges
Non refundable fee Rs.450/-
Processing Fee/ Documentation charges Rs. 3,750/-
Registration Charges Actual
Insurance of the car
BOP has arranged insurance facility from its approved list of companies at discount rates
for the convenience of its customers. Insurance premium for the first year will be paid in full
up front with down payment and for subsequent years along with installment
Monthly Installment plan
L oan will be repaid in equal monthly installments through postdated cheques. Total monthly
installment includes principal, mark up and insurance amount.
We can easily calculate monthly installments by multiplying the loan amount with the
pricing factor:
Tenor of Loan Pricing Factor
3 Years 0.03111
4 Years 0.02418
5 Years 0.02004
DOCUMENTS REQUIRED
For salaried individuals:
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The Bank of Punjab
Copy of NIC
2 Recent Photographs
Latest Salary Slip / Certificates on Comp. Letterhead
Bank Statement for last 6 months
Latest Copy of Utility Bills
For self employed business persons/professionals
Copy of CNIC
Two recent photographs
Bank statement for the last I year of business account
If not banking with us Banking certificate from branch manager stating Title,
Account number, Business entity, Maintained since, Authorized signatory
Copy of Latest utility bills
Business Related Documents
Documentary evidence in business or in profession for the last 3 years
Income Tax return / wealth tax statement
Proprietorship/Partnership Deed
Articles & Memorandum of Association
Latest copy of paid utility bills (Phone & Electricity) of current business
address
Membership/payment receipts of Chamber of Commerce/Trade Association /
Anjuman-e-Tajiran, if available
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The Bank of Punjab
BOP DEMAND FINANCE (CLEAN)
ELIGIBILITY CRITERIA
Between 25 and 59 years of age
Permanent/ confirmed GOVT/ private employee/ professional maintaining
salary account in any bank, having at least 1 years of experience
Monthly installment should not exceed 40% of take home salary
Computerized National Identity Card holder
Loan amount/Limit
Up to 25 take home salaries (Maximum Loan amount + Rs. 500,000/-)
Tenure of Loan
Loan is given for the period of 1year to 5 year
Mark-up Rate
Most competitive rate in the market, which will be calculated on daily product basis, which
is
For all other client Average six month KIBOR + 550 BPS
With Floor rate of 14% p.a.
Other Charges
Non-refundable fee Rs.450/
Processing Fee Rs. 1,850/
Documentation charges Rs. Actual
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The Bank of Punjab
Pre-Sanction Document Requirements
Copy of CNIC
Latest Salary Slip/Salary certificate on Company's letterhead
Two personal guarantees with CNIC (exemption of BOP staff)
Employer Certificate on company’ letter head with joining date, current
designation, length of service, gross salary & certificate from HR department
for perks
Departmental Undertaking regarding salary rout though
Data check
Undertaking Regarding Payment of post dated cheques.
Post-Sanction Document Requirements
Two personal guarantees (expected incase of BOP employee)
Financing Agreement
D.P. Note
Letter of hypothecation
Post Dated Cheques
White Documents
I. Letter Of athoriety
II. Authorization /consent
III. Letter of Arrangement
IV. Debit Authority
V. Letter of Installment
VI. Under taking regarding KIBOR
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The Bank of Punjab
HOUSE LOAN
Product
The Bank of Punjab house loan is long-term finance facility for purchase of house/flat or
construction of house on self-owned plot or for renovation/ home
ELIGIBILITY CRITERIA
Salaried Person
Permanent employees of selected organizations with a minimum take home salary of
Rs.20, 000
Self-employed
Business person and professional having minimum 5 years in current business
Holder of computerized National Identity Card
Between 25 and 60 years of age
Loan Amount
PurposeMinimum
Amount
Maximum
AmountBank Rate
Purchase of House/Flat&
ConstructionRs. 300.000/- Rs. 7,500,000/-
Bank financing up
to 70% of
assessed value
Home Improvement/
Renovation / AdditionRs. 300.000/- Rs. 3,000,000/-
Bank financing up
to 20 % of
assessed value
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The Bank of Punjab
Tenure of the loan
Purpose Minimun Maximum
Purchase of House/
flat3 years 15 years
Construction 3 years15 years with maximum 12 months grace
period.
Home improvement 3 years 05 years
Mark up rate charged
Most Competitive rate in the market, which will be calculated on daily product basis, linked
with Average six months KIBOR +300 BPS; it will be reviewed every quarter.
(For each year new amortization schedule will be provided to the customer in case of any
change in mark up)
Other charges
Non-refundable fee Rs.450/-
Processing Fee Rs. 2,950/-
Valuation charges, legal charges Stamp duties, levies etc Actual
How will the loan be repaid?
Loan will be repaid in equal monthly installments through postdated cheques. Total monthly
installment includes principal, mark up and insurance amount.
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The Bank of Punjab
Monthly installment can easily be calculated for e.g. .if, you take a loan for Rs. 1,000,000
for 15 years. Simply multiply the 15-year factor by your amount Rs. 1,000,000 * 0.00985 =
Rs. 9850 will be your monthly installment payable excluding insurance (Life & Property).
Financing
periodPricing Factor
3 0.03157
4 0.02465
5 0.02052
6 0.01778
7 0.01584
8 0.01439
9 0.01328
10 0.01240
11 0.01169
12 0.01110
13 0.01061
14 0.01020
15 0.00985
(Insurance premium for the first year will be paid in full up front with down payment and for
subsequent years along with installments.)
Security of the loan
House/flat purchased
Plot on which construction is to be carried out
House on which renovation is to be carried out
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The Bank of Punjab
Documents are required
Copy of CNIC
Two recent photographs
Last three Salary slips/ salary certificate on company's letter head with joining
date Current designation, length of service, gross salary & certificate from HR
department for perks.(for salaried individuals)
Bank statement for last six months for salaried individuals and for the last I
year incase of self-employed businessperson
Copy of utility bills
Fee slip of children if applicable
Income tax return / wealth statement
Copy of Rent agreement if living in rented house
Business proof (for a business person)
4. Agriculture Financing
The bank of Punjab is offering following agriculture schemes
Kissan Dost Agricultural Scheme
Kissan Dost Tractor Scheme
Kissan Dost Mechanization Scheme
Kissan Dost Farm Transport scheme
Kissan Dost Eslah-E-Arazi Scheme
Kissan Dost live stock development Scheme
Kissan Dost livestock Scheme
Kissan Dost Commercial Agro Services Scheme
Kissan Dost Agri Mall Scheme
Basic requirement for all these schemes are same. But there is little bit difference
according to the scheme and amount of the loan. In most of the schemes the requirement
is that the Brower should be resident of cultivated area and own a minimum 5-acre and
maximum 50-acre area. Amount of loan is different for different loans. For all these loan
there must be some security for bank. Mark up rate is different according to scheme.
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The Bank of Punjab
5. Corporate Financing
Relationship Managers, at the bank of Punjab are dedicated towards developing
relationships with corporate clients to service their financial needs. Advances department
provide the advance to the reliable corporate client. The corporate finance department of
bank of Punjab is offering different types of loan facilities, like Demand Finance, Cash
Finance, Running Finance over draft etc.
For corporate financing bank the financing limit for client on the basis of its asset and
bossiness exposure. The Corporate Banking Group manages a high quality asset portfolio
being an active player in many sectors including textile, sugar, leather, pharmaceutical,
fertilizer, petrochemical, power, automotive, oil and gas distribution, marketing and refining
and fast moving consumer goods industries.
In the dynamics environments of business bank provide the short-term and long-term
funding needs in the most efficient manner, drawing from the full range of our resources
and capabilities. To provide finances bank must look at the affectivity and efficiency of the
business. The bank of Punjab is offering the variety of working capital financing facilities.
The bank of Punjab is also providing the structured finance syndicate to its clients.
6. Trade Services
The foreign exchange department of bank of Punjab is offering the trade service to clients.
The bank of Punjab offers a full range of documentary letter of credit services as well as
discounting and reimbursements to support any or every part of the customer trade
transaction. Experienced personnel use their specialized expertise to innovatively structure
trade transactions and process daily trade transactions, and have end-to-end responsibility
for your letters of credit, reimbursements, negotiation of documents, and inquiries. They
also handle export guarantee transactions and government donor flow intermediation.
The bank of Punjab can provides trade related facilities, for an appropriate period, in line
with working capital cycle of client, to assist client in financing their imports/exports. There
are two types of LC, sight LC and usance LC. In sight LC bank pay the amount when it
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The Bank of Punjab
receive the Bill Lading from Correspondent bank. In usance LC, there is limit of payment
normally 90 days. For providing these facilities bank have following charges schedule.
Charge schedule of the bank of Punjab
I)
Sight Billsa) At Negotiation end:
b) Collection charges for restricted L/C (where negotiation is restricted to some other Banks and presented to us for forwarding).
c) At opening end (at the time of retirement) Rates of Mark-upi.) If retired within 3 days from the date of lodgment.ii.) If retired after 3 days of lodgement.
Negotiation commission @ 0.50% - Min Rs. 200/-+ Courier Charges Rs.50/-
Rs. 250/- (Flat) Per Bill + Courier Charges Rs.50/-
As per approval of Sanctioning Authority
As per approval of Sanctioning Authority
NOTE:* No Mark-up will be charged from the date of negotiation till the date of lodgement of documents received under Inland L/Cs, where the payment as per reimbursement arrangement is made to the negotiating bank only on receipt of documents.2 Usance Bills
1) Negotiating End
i) Markup on documentary Bills Purchased /Negotiated under Inland L/C
0 2) Opening End
a) At the time of Acceptance of the Bills.
Negotiating commission Rs.200/-Flat+Courier charges Rs.50/-(I) In case of Sight L/Cs Mark-up is to be recovered/charged as per approval of Sanctioning Authority.(II) In case of Usance L/Cs Mark-up is to be recovered/charged as per approval of Sanctioning Authority.(III) In case of Usance LCs of our own Bank, Mark-up is to be recovered/charged as per approval of Sanctioning Authority
Acceptance Commission @ 0.10% per month shall be recovered/charged for the usance Import Bills for the period beyond the date upto which the commission has already been charged at the time of opening of LC or thereafter any extension is made in the validity of the LC.
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The Bank of Punjab
3
b) At the time of booking
c)At the time of maturity/due date
At Collection End
Collection Charges
Discrepancy Charges
Rs.350/- (Flat).
Rs.350/- (Flat).
Rs.250/- (Flat) per bill + courier charges Rs.50/-
Rs.500/- (flat)
These all facilities are provided on the specific limit maintained by the corporate bank. The
bank of Punjab is offering FIM, FATR facilities to its clients.
For foreign trade, The Bank of Punjab has collaboration with following foreign bank for
correspondent.
CORRESPONDENT BANK
Bank Name Address Swift & Telex Currency Account No.
STANDARD CHARTERED BANK
23-25 Mahatama Ghandi Road, FORT Mumbai 400 001
SCBLINBB ACU $ 22205248426
BANK SADERAT IRAN
Sepehr Tower Somayeh Ave. P.O. Box 15745-631 Tehran, Iran
BSIRIRTH 0088-212352
ACU $ 216/1/1/6501
NATIONAL BANK OF CANADA
Banque Nationale du Canada 600,rue de la Gauchetiere Quest Montreal H3B 4L3,
BNDCCAMMINT 00210-525181
CAD 097613-228-001-01
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The Bank of Punjab
Canada
UNITED BANK AG ZURICH
8034 Zurich, P.O.Box 1176 Feldeggstrasse 55, Switzerland
UNILCHZZ CHF 859.03.01.001
DANSKE BANK AKTIESELKAB
Holmens Kanal 2-12, DK-1092 Copenhagen K, Denmark
DABADKKK 27000 daba
DKK 3996077691
COMMERZ BANK
Commerz Bank AG, Frankfurt ZFO BC MITTE 9.6.4 Heidrun Koch-Vollbracht
COBADEFF 0041-4152530
EURO400-8807406-00-
EUR
NATIONAL BANK OF PAKISTAN
Filale Frankfurt/M. Frankfurt Branch, Germany
NBPADEFF 0041-414103
EURO 491551
STANDARD CHARTERED BANK
37 Grace Church Street London EC3V OBX-U.K.
SCBLGB2L 0051-885951
EURO 01-7087888-96
U.B.A.F., PARIS190 Avenue Charles de gualle 92523 Neuilly Cedex france
UBAFFRPP 0042-610334
EURO01-092225-001-
51-0
NATIONAL BANK OF PAKISTAN
90, AV. DES Champs-Elysees 75008, Paris, France
NBPAFRPP 0042-651828
EURO1210-1227-1-18-
70
ABN AMERO BANK
New York Branch, P.O.Box 4555/Grand Central Station, New York, N.Y 10017 USA
ABNAUS33 0023-62734
EURO 005747324350
BAYERISCHE HYPO-UND VEREINSBANK AG (HYPO VEREINSBANK)
Am Tucherpark 16, 80538 Munich Germany
HYVEDEMM EURO 69106935
UNITED NATIONAL BANK
18 Finsbury Circus London, EC2M 7BJ U.K
NBPAGB2L 0051-884892
GBP0001-000063-
001
STANDARD CHARTERED BANK
37 Grace Church Street London, EC3V OBX U.K
SCBLGB2L 0051-885951
GBP 01 7087888 01
NATIONAL BANK OF PAKISTAN
3F, 7-4, 2-Chome, Nishi Shimbashi, Minato-KU, Tokyo 105, Japan
NBPAJPJT 0072-23830 JPY 21067
ABN AMERO BANK
New York Branch, P.O.Box 4555/Grand Central Station, New York, N.Y 10017 USA
ABNAUS33 0023-62734
USD 574073243541
HABIB AMERICAN BANK
HABL, 99 Madison Ave., New York, NY. 10016-7419 USA
HANYUS33 0023-275859
USD 20729586
MASHERQ BANK , PSC
255 Fifth Ave. New York, NY 10016 USA
MSHQUS33 0023-239881
USD 70120078
NATIONAL BANK OF CANADA
Banque Nationale du Canada 600,rue de la
BNDCCAMMINT 00210-525181
USD 097613-240-002-001-01
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The Bank of Punjab
Gauchetiere Quest Montreal H3B 4L3, Canada
NATIONAL BANK OF PAKISTAN
100 Wall Street, 21st Floor, new York, N.Y. 10048 USA
NBPAUS33 0023-232455
USD 55804561
STANDARD CHARTERED BANK
1 Madison Ave., New York N.Y 10010-3603, U.S.A.
SCBLUS33 0023-420117
USD3582-040168-
001
U.B.A.F. (HONGKONG) LIMITED
UBAF, 18th Floor Far East Finance Centre, 16 Harcourt Road, G.P.O. Box 9917 Hong Kong
UBAFHKHX 00802-75386
USD60 030000 001
03 0/96
CITIBANK N.A111 Wall Street, 5th Floor / Zone 9 New York, NY 10005
CITIUS33 USD 36208954
UNITED BANK LIMITED
30 Wall Street, New York, U.S.A.
UNILUS33 USD 040-0498-5
OBECTIVES OF INTERNSHIP
This internship was the part of my study course, so objective of this internship was to
learn and gain some practical experience. During the MBA program, I studied many
courses about finance, management etc. Here my aim was to see the application of this
bookish knowledge and its practical implementation. How it is useful in practical life. I
saw the differences in bookish knowledge and its application.
In all jobs related to finance, there is involvement of banks. So my aim was to learn how
banks deal with corporate and general information about rules and regulation of banks.
My second objective of this internship was to learn about general banking, as customer
I tried to get experience, how to work with people of different age, different educational
background, and different interests. How I can be a best team player, how to interact
with officer and deal with subordinates.
.
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The Bank of Punjab
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The Bank of Punjab
Learning As a Student Intern
Duties
Date Description Supervisor
12 July to
16 July
Account opening is the entrance to bank.
In this department I worked on different
old account and open new account for
individual, proprietor and companies.
Mr. Amin Dogar
18 July to
23 July
I worked in Consumer finance
department. In consumer finance major
job was “customer dealing”
Mr. Muhammad Afzal
25 July to
26 July
I worked in Clearing department. Here
major activities were to receive the
cheques and send these for clearing to
other bank after stamping and keeping in
record.
Mr. Amir Butt.
27 July to 1
August
I worked in remittance department. Here
we issued, DD, Pay order, TT, MT and
like other responsibilities.
Mr. Shahid
2 August to
4 August
I worked in cash department. Here I
learnt how they calculate profit on
corporate accounts and transfer the
amounts.
Mr. Raheel
5 August to
6 August
I worked in utility collection. Here I learnt
how bank adjust the collection from other
branches with the accounts of PTCL and
WAPDA.
Miss. Aneela
8 August to
23 August
I worked in foreign exchange department.
Here I worked in import, Export and
Foreign currency accounts. In each of
Manager Foreign
exchange.
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The Bank of Punjab
these, I performed different duties.
24 August
to 5
September
During this period, I worked in advances
department.
Manager advances
New Knowledge Acquired
As this was my first experience in any bank, so all working of bank was new for me.
About account opening
Account opening is a simple process but it becomes complicated in case of corporate
accounts. For individual or joint account, account opens on following simple requirements.
Copy of national ID card
Written evidence of what applicant is doing
An introducer (a person who already holds account in the bank) for account
opening.
Requirement for company account are as follows
Written request on the letterhead of company from an authorized person to
open company’s account
Chief executive, company secretary and director along with common seal
must sign resolution
Attested CNIC copies of all directors
Form 29 attested from registrar of joint stock companies
Memorandum and articles of association.
Certificate of incorporation
Certificate of commencement of business only in case of public limited
company
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The Bank of Punjab
After the completion of these requirements, bank will open the account and sends letter of
thanks to its customer. When account holder comes with letter of thanks bank will issue
chequebook to account holder. If chequebook is lost the account holder has to give written
application for the stop payment of cheques of that chequebook and fill a form for issuance
of new chequebook.
Remittance
Banks offers different types remittance having different specification. These remittances are
demand draft, for out station payment. Mail transfer is to transfer the amount by mail in any
account of same bank. Telegraphic transfer is same like the MT but here fax machine is
use instead of mail. Pay order is used for intercity payment. This is main difference
between Demand Draft and Pay Order. Call deposit receipt is used in case of tender or
auction.
CLEARING
Clearing is used to pay or receive payments to other banks. There are 2 types of clearing
Inward clearing
Outward clearing
Inward clearing
Cheques of our branch that are deposited at other banks are brought to us by NIFT. This is
called inward clearing. In inward clearing we DEBIT a/c of our a/c holder and CREDIT other
branch.
Outward clearing
In outward clearing cheques of other banks are presented in our branch. In it we check
certain factors such as words and figure difference, date of cheque etc.3 stamps are
stamped in these cheques
Clearing stamp
Crossing stamp
Payees a/c credited stamp
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The Bank of Punjab
In outward clearing we DEBIT suspense a/c and CREDIT a/c no. of our a/c
holders.
CHEQUE RETURN IN OUTWARD CLEARING
If cheque is returned in outward clearing we make an entry of the returned cheque in the
register and give it back to our customer after having his signatures in the register.
CHEQUE RETURN IN INWARD CLEARING
If the cheque is returned in inward clearing, we fine our a/c holder Rs 100 as a penalty and
also make an entry in the register.
INTER BRANCH CREDIT TRANSACTION (IBC)
IBC advice is made for both inward and outward clearing.
CASH
Cash department perform the responsibilities to deal with cash, transfer amounts from one
account to other accounts and calculate the profit for different types of accounts. When
cheque is presented to bank, officer match the word and figure of cheque. If words and
figure is correct then officer verify the signature and check the date. A cheque can be
converted in to cash within six month. After six month cheque expires. For PLS account
bank calculate the profit on the minimum balance in account from 6th to 29th of the month.
Bank pays this profit after six moth or transfer in account of account holder after six month.
For corporate account profit is calculated on daily basis. Profit is credited after a moth in the
CPA account. Formula used to calculate the profit is
Profit = Capital X days X (%)
365 X 100
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FOREIGN TRADE
Foreign trade is divided in two parts, Import and Export
Imports
For import any product, importer first contact with foreign exporter. There are three
possibilities for trade, one is the advance payment of the imported product, second is
contract between two parties and is the LC, when both parties importer do not rely on
foreign exporter. Advance payment and contact is simple payment through bank, but in LC
bank guarantee about the foreign exporter. To open LC importer request for issuance of LC
on legal required paper with Performa invoice, I forms and insurance of the product.
Importer also gives detail of condition of LC. After this request bank will send LC through
swift. After receiving LC documents, foreign importer ships the product and sends the bill of
lading or AWB to local bank. Bank checks the LC and bill of lading. If there is any
discrepancy, bank takes the acceptance from importer about the discrepancies. To clear
the imported product from port, importer takes the bill of lading from bank after the payment
of LC. If importer cannot pay the amount there is two facilities from bank, FIM and FATR. In
FIM the imported product remain in the custody of bank. Importer has facility to realize the
quantity of product as after payment of that quantity. FATR facility is normally for 120 days.
This facility is for the reliable customers. In this facility customer release the whole
imported product.
Export
Export is just like imports but here we act as exporter bank. In export we perform all that
activity which foreign banks perform in case of import. Exporter provides the documents
like bill of exchange, AWB, certificate of origin, packing list and all other document required
in contract or LC with E form. Bank sends these documents to foreign bank. On receiving
these documents, bank pays the amount according to conditions in LC. Or Contact. In
export bank provides the refinancing and purchasing facility to customers. When customer
has relied on foreign importers then bank take risk and purchase the exports after
shipment. Exporter receives payment from bank, now whole risk of this trade is converted
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to bank. This facility is called negotiation or purchasing. In refinancing bank finance the
local exporter according to prudential regulation of state bank.
Advances
Main working of Advances is department is to provide loan to corporate client. This main
job of this department is to maintain the credit limit of client, offer loan, approve loans and
like other work related to corporate loan. Normally banks offer the loan in form of Demand
finance, cash finance, running finance and other schemes according to customer
requirements. Running finance facility is to meet the day-to-day expenses. In running
finance bank debit the account of corporate client and issue the chequebook. Client can
cash the require amount from this account. Cash finance facility is to meet seasonal
requirement of cash. For example in cotton season, textile related companies require cash
to buy cotton. Bank provide loan and cotton remain in custody of bank, to provide different
loans banks require different securities like Lien, Pledge, Hypothecation and Mortgage.
Lien is marked on liquid assets; mortgage is for the assets like land or building. Pledge is
offered for cash finance or seasonal finance.
Documentation Require
Generally for all types of loans, bank of The Bank of Punjab require following documents.
Document For
Accepted Facility offer letter “FOL”
Letter of arrangement
Demand promissory note
Letter of continuity
Letter of authority
Letter of installment
Agreement for financing
Letter of hypothecation
Letter of pledge
All facilities
All facilities
All facilities
Running finance
All facilities
Demand finance
All facilities
HYPO
Pledge
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Memorandum of deposits of title deeds
Comprehensive insurance policy
Personal guarantee of the Mortgagor/ Director
Where required
Where required
Where required
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SWOT ANALYSIS
Strengths
I. The Punjab government is supporting to “The Bank of Punjab”. It builds trust of client
on Bank.
II. M/S PACRA has awarded the Bank with the credit rating AA- for Long term and A1+
for Short term, based on its financial results for the year ended as on 31st December
2004
III. The Bank of Punjab has a large network of branches. There are 254 branches all
over the Pakistan
IV. The Bank of Punjab has computerized banking system.
V. The Bank of Punjab provides the online Banking facility to its customer.
VI. To train its employees Bank of Punjab have training center. There are different
training session are held for new and old employees.
VII. Financial position of The Bank of Punjab is growing every year. The Bank of Punjab
has highest earning per share.
Weaknesses
I. The Bank of Punjab has only few branches out of province Punjab. Other banks
have competitive edge.
II. As Bank of Punjab has extensive branches within the Punjab province. It is difficult
to manage large number of branches, further it increase the cost.
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III. The staff members of The Bank of Punjab are not satisfied with the pay scale
increments and promotion criteria as compare to other banks.
IV. The work responsibilities are broken into small parts.
V. The bank is offer regular product line. There is need to enhance the product line.
VI. Turn over rate of employees is increasing, as they are not satisfied with the pay
structure.
Opportunities
I. As economy is growing, there is more investment demand in Pakistan. Banks have
opportunity to enhance their business.
II. Imports and exports of the country are increasing.
III. With the threat of WTO SMEs require more funds to enhance their infrastructure to
improve the quality. Banks are the source of these funding.
IV. The number of salaried persons is increasing with the economy structure of the
country. This creates opportunity in consumer financing.
Threat
I. The Bank of Punjab has major GOVT. deposits. With change of government policies
it may affect the bank
II. Entrance of foreign bank in competition with local bank is great threat for bank of
Punjab
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III. The State Bank of Pakistan often imposes various restrictions on banks. Therefore,
none of banks is independent in policy making and can launch any product without
the permission of the State Bank of Pakistan.
IV. Government legislations about banking sector
V. Political factor more influence on The bank of Punjab
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RECOMMENDATIONS
Last five year performance of The Bank of Punjab shows that the bank of Punjab is
increasing its profitability and its deposits. Being the bank of government, the bank of
Punjab has major government accounts.
The bank of Punjab should try to maintain the accounts of diversified
companies. This will reduce the risk of government policies
To manage its all branches the bank of Punjab should establish the intranet
system.
To attract new customer bank should offer value added services
The Bank of Punjab should increase the line of product to attract the new
clients.
Those activities, which a one person can perform, should be integrated to
save time.
The bank should revise its pay structure and compensation plan according to
the market, in view to decrease the turn over rate
CONCLUSION
The bank of Punjab is the one the best bank in local banking sector. Its growth rate is
highest among all local banks. There are some flaws like the small product range, have
two are three major GOVT accounts and like others. The bank of Punjab has potential to
become top ranking bank in Pakistan banking industry.
My basic purpose of this internship is to learn about the working of bank. During my
internship I got knowledge about general banking, foreign exchange and advances. Staff
member of bank of Punjab are cooperative with me and really help me to achieve my
objective.
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Bibliography
http://www.bop.com.pk
http://www.sbp.org.pk
http://www.business-standard.com
http://www.sheshunoff.com
Staff of the bank of Punjab
Annual report of the Bank of Punjab
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Glossary
Advice A bank's written acknowledgement of a transaction
ATM automated/automatic teller machine
Asset turnover is a ratio focusing on the volume of sales achieved by the business
Asset portfolio Allocating the funds to different assets classes
AWB Air way bill
Bill of exchange An order written by an exporter instructing an importer, or an Importer’s agent, to pay a specified amount of money at a specified time
Bill of lading A document issued to an exporter by a common carrier transporting merchandise. It serves as a receipt, a contract, and a document of title.
BPS Basic points (Set by the bank to adjust markup)
Capital Adequacy Capital adequacy means having enough capital funds to protect it from the risk that customer could lose their deposits as a result of trading losses, e.g. from bad debt by the bank.
CDR Call deposit receipt
CPA Corporate premium account
Credit rating A measured judgment, or formal opinion, about the likelihood that Interst payments on particular issue of bonds or other debt security will be paid full and on time, and that debt principle will be repaid in full at maturity. Ratings are by specialist agencies. The highest credit rating for long-term debt is AAA.
Commercial banks An authorized institutions and perform four functions. They accept deposits, make loans, arrange payment of bills and provide a number of customer services
Data Check Data check is a document has records of all loan of customer form all banks
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DD Demand draft
D.P. Note Demand promissory note, a legal document
Dividend Part of a company's profits paid to shareholders
Earning per Share the portion of a company's profit allocated to each outstanding share of common stock
Equity Total assets minus total liabilities.
FIM Finance against imported merchandise
FATR Finance against trust receipt
Hypothecation
KIBOR Karachi Inter bank offer Rate
LC A bank issued document that guarantees payment for a pre-specified period and amount
Letter Of authority A written agreement to allow Bank to deposited or withdrawn from an account Lien An asset held in exchange for debt financing. In lien normally there are liquid assets like bonds, shares.
Markup The charge you pay if you borrow money or the income you get if You invest it.
MT Mail transfer
Mortgage Mortgage is charge on immoveable property to secure the finance
NIFT National Institute of facilitation technology (pvt)
PLS account Profit loss sharing account
Profitability Ratio The ratio used to measure the ability of a company to generate profits.
Pledge Pledge is the bailment of goods for security. In pledge goods are in possession of bank.
Sight LC In sight LC payment will be made on receiving the shipment
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documents.
Stock dividend A payment by the corporation in share of stock rather than cash
Syndicate A group of banks acting together temporarily to loan money in a syndicated credit or to underwrite a new issue of bonds
TT Tele graphic transfer
Usance LC In usance LC payment will be made after 90 or 120 days of shipment
Working Capital Stock plus debtor minus short-term creditor
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Appendix
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