The bank-of-khyber

Internship Report On BoK

CHAPTER # 1

INTRODUCTION

INTRODUCTION OF BANK OF KHYBER

The Bank of Khyber was established through an Act of NWFP

assembly called, “The BoK Act, 1991, “passed in June 1991 the

bank was formally launched on November 01, 1991.

The Bank of Khyber initially started as a provincial Bank and later

declared as Scheduled Commercial Bank by SBP in September,

1994.The initial paid up capital of the Bank was Rs. 153 million,

which has now been raised to Rs. 1 billion.

SCHEDULED BANK STATUS

Since 1994 the Bank of Khyber has come under the regulatory

framework of SBP, and operate as Scheduled Bank at the National

level.

While compliance with requirements and other regulatory

restrictions had a negative impact on Bank’s profitability in 1995,

however the ensuring growth in business expanded the profits of the

bank reaching Rs 85 million in the year 1997.

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COMMERCIAL AND DEVELOPMENT

The Bank of Khyber is unique because is not only acts as a

commercial bank but also strives to be a development bank through

its emphasis on financial support, especially to small and medium

sized businesses whose access to credits is not always easy.

It has set up a project Finance Department and Micro Business and

Rural Development Department for achieving its objectives of

encouraging and supporting small and medium sized businesses and

bringing them into the mainstream and economic development.1

PURPOSE OF STUDY

The purpose of the study is to know the practical implementation of

the theoretical knowledge, in an organization. The study on The

bank of Khyber was carried out to find the answers to the

shortcomings that were observed during the internship. Based on

the analysis and findings some recommendations are presented to

the management for improvement of its operations.

Apart from this, the internship report is an important and

compulsory requirement for the Bachelor of Business

Administration Degree.

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SCOPE OF WORK

The internship was done at Bank of Khyber, Head Office,

Peshawar. The scope of the study is confined to a HRD department

of the Bank of Khyber as I have spent time in Personnel and

Establishment department of the Bank of Khyber.

The study basically includes area of management , HR department,

and to develop the confidence, while interacting with highly

qualified personnel in the bank.

METHODOLOGY OF THE STUDY

The data/ information for the internship report was gathered

through different sources i.e primary as well as secondary, a detail

of these is given below:

PRIMARY DATA

The interviews, discussions with management and staff members,

briefings given by mangers, questionnaire filled by the staff and my

personal observation during the internship were the sources of

primary data.

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SECONDARY DATA

The broachers, manuals, annual reports of the Bank of Khyber

other booklets of The Bank of Khyber about the rules and

procedures, articles from news papers and journals, information on

the website of The Bank of Khyber were the sources of secondary

data.

SCHEME OF THE REPORT

The scheme of report shows a brief review of the different chapters

of the report. These are as follows:

CHAPTER 1: INTRODUCTION

It provides information related to the report, it is a brief overview of

the study of internship report. It includes Introduction of Bank of

Khyber, Purpose of study, Scope of study. Methodology of research

and Scheme of report, banking sector in Pakistan, Mission

statement and objectives of the bank of Khyber.

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CHAPTER 2: ADMINISTRATIVE AND FUNCTIONAL

SETUP OF BOK

It includes different topics related to Organizational structure of the

bank of Khyber., Head office, HRD department, Functions of HRD

department.

CHAPTER 3: PERSONNEL POLICES

Recruitment policy, Terms and Conditions of services, Human

Resource Development and training, Allowances and Fringe

Benefits, Leave Rules, Loans and Penalties.

CHAPTER 3: ANALYSIS

It includes administrative analysis, personnel management

analysis, political analysis and SWOT Analysis of The Bank of

Khyber.

CHAPTER 4: FINDINGS AND RECOMMENDATIONS

This section shows the favorable and unfavorable findings of The

Bank of Khyber, that were observed during the internship and

recommendations were developed for these weak areas of the bank.

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BANKING

A bank is an Institution, which deals in money. Broadly speaking,

Banker draw surplus money from the people who are not using it at

the time and lend to those who are in a position to use it for

productive purposes.

BANKING SECTOR IN PAKISTAN

The money market structure in Pakistan comprises the following:

1)SBP 2) Commercial Banks 3) Exchange banks 4)Cooperative

Banks 5) Cooperative Credit Banks 6) Saving Banks 7) Specialized

Credit Institution.

SBP operates as the controller of money market. It is the Central

Bank of country.

Commercial Banks in Pakistan can be classified in two broad

categories: Local and Foreign Banks. Local banks includes: 3

Public Sector 3 Denationalized 2 provincial bank (now allowed to

operate nationally) and is newly established bank. The 21 Foreign

banks operating in the country focus on a selective clientele due to

their fewer branches.

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BANKING SECTOR IN NWFP

There are about 22 Pakistani Scheduled banks operating in the

NWFP having 1147 branches or about 15% of all the branches of

scheduled Pakistani banks, in the country. In addition 3 foreign

scheduled banks with a total of 3 branches are also operating in the

province.

Historically banks in the NWFP have been able to mobilize

substantial amounts of the total deposits of the country. However

their share of investment in the province has not been within the

province has also increased creating a demand for banking services.

A large expatriate community from NWFP residing overseas

especially in the Middle East are also offering opportunities to

banks operating in the province.2

MISSION STATEMENT

The Bank of Khyber being an organization has mission. The

mission, documented in the mission statement is as follows:

“To increase shareholders’ value and provide excellent service

and innovative products to customers through effective

corporate governance, friendly work environment, and

contributing towards an equitable socioeconomic growth.”3

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CORE VALUES

• Highest quality of service.

• Professionalism, Integrity and Team Work.

• Innovation and utilization of latest technology.

• Corporate Social Responsibility.4

MAIN OBJECTIVES OF THE BANK

The BoK was established to:

• Meet demand of the business community to have a Bank with

its Head Office in the Province.

• Have accessibility of local businessmen to senior

management of the Bank for prompt credit decision making

thereby accelerating investment in NWFP.

• Have maximum utilization of funds raised in the Province for

economic development of NWFP.

• To mobiles private savings and public funds for diverting

the same into productive channels and ensure their

availability.

• To promote industrial agricultural and soico economic

processes through the active participation of private and

public sector in the province.

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• Help under developed areas and create employment

opportunities, specially in the rural areas of the province.

Further, to guide and assist the people of NWFP serving

overseas to effectively and profitably invest their foreign

savings in the province as well as in other parts of Pakistan.

• Create a diversified and sound portfolio for utilization of idle

funds and their investment in the existing and new ventures

specially in the pioneering of high-tech agro based export

oriented and engineering projects to ensure maximum

returns.

• Participate and seek of the province in the capital market of

Pakistan by way of subscription through locally pooled

resources in the leading stock exchanges of the country and

eventually paving the way for establishing a stock market in

the province.

• One of the purpose behind the establishment of BoK was to

fulfill the demand of the business community of NWFP, and

to have a commercial bank its head office in the province to

serve more effectively the people of the province.5

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REFERENCES

1.The Bank of Khyber, Information Memorandum 1998, pp 3-4

2.The Bank of Khyber, Information Memorandum 1998, p – 2

3.The Bank of Khyber, Annual Report, 2003, p – 4

4. The Bank of Khyber, Annual Report, 2003, p – 5

5.The Bank of Khyber, Information Memorandum 1998, p – 3

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CHAPTER # 2

ADMINISTRATIVE AND FUNCTIONAL

SETUP OF BOK

ORGANIZATIONAL STRUCTURE OF BANK OF KHYBER

The Bank of Khyber is one of the modern organizations, it being

managed by a competent staff. It is a centralized organization and

the authority flows from up to bottom.

All the available information about the organization’s management

and structured are given in this chapter. Based on BoK Act, the

general superintendence and direction of the affairs and business of

the bank has been entrusted to the Board of Directors (BOD). The

Board of five directors comprising four directors nominated by the

government of N.W.F.P.1

BOK’S BOARD OF DIRECTORS

According to the Bok Act, the Board of directors comprises of nine

as follows:-

Four directors nominated by the govt.

One director nominated by the Foreign Equity Holder

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Three directors elected by the shareholders

The managing Director shall be the ninth director2

The list of board of directors is attached as annexure – 1

MANAGEMENT

The day to day operations of the bank are run by a capable team led

by Mr. Bashir Ahmad who is a competent, well qualified and highly

respected banker. He has served with the World Bank, and as

Federal Secretary to the government of Pakistan. He has also served

as the managing Director of PICIC, IDBP, NIT and chairman,

ADBP during his career. He holds a degree in economics from the

London school of Economics. Over the past few years, Mr. Bashir

Ahmad has gathered a team of professionals and well qualified

senior executives of the bank.

EMPLOYEES

The bank currently employs 351 regular officers in various cadres

of the bank. They include 2 ph.D.,181 post graduates including 75

MBAs/M.com, 93 M.A/M.Sc, 13 LLB from foreign and local

universities and 169 graduates. Regular Clerical/ Non-Clerical

Cadre does not exist in the Bank.

The bank provides them with on the job training, as well as

exposure to advance courses and seminars conducted by the

institute of Banker in Pakistan and other professional institutes.3

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HEAD OFFICE

Bank of Khyber have its Head Office. It is situated in cantt. This

office is equipped with latest scientific tool. It has internet software.

It provide all the important information. Head office has two

divisions; as given below:

The banking division

Administrative division

These are further classified for the purpose of administrative

convenience. There is also other 2 independent departments.

long term projects

Audit department

Long term projects handles the invest proposals of huge industrial

projects whereas audit department is meant to have an internal

control:

DIFFERENT DEPARTMENT IN HEAD OFFICE

1. Branch operation department

2. Micro business and Rural development

3. Investment

4. Personnel and establishment

5. Accounts and treasury

6. Monitoring and recovery

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7. Long term projects

8. Computer

9. Foreign exchange

10. Public relation

11. Credit

12. RRMC/RC

13. International banking

DEPARTMENTS

1. BRANCH OPERATION

The branch operation department have direct control on operation

of branches. It handles all these issue that are directly related to the

operation of branches e.g.

• Handles and legal issues

• Budget projection

• Test key

2.MICRO-BUSINESS AND RURAL DEVELOP

DEPARTMENT

This department deal specially with the due of cotton industry and

small businesses, the aim of establishment this department was to

fulfill the finance need of small businesses in NWFP. This

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department also provide loans to women development and rural

area.

3. INVESTMENT

This is a relatively new establishment department. The purpose is to

pinpoint the invest opportunity and to develop investment

programs. This department also forecast threat associated with these

opportunity and give expertise.

4. PERSONNEL AND ESTABLISHMENT DIVISION

i) Personnel.

ii) Establishment

Human are the backbone of organization. Its success is largely

dependent on its personnel. The personnel department handle all the

issue related to its employee it handle from recruit to promotion

from ACR preparation to punishment and incentives etc.

In order to develop its talented employee personnel section in

collaboration with M/S department which was establishment

recently aims at providing, preserving and enhancing new as well as

existing employee competence in their jobs through improving their

knowledge, skill, abilities and other characteristics by providing

them training opportunity.

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ACCOUNT AND TREASURY

This department keep entire record relating to accounts. This

department as its name signifies is responsible for handling the

account of cash of bank of Khyber.

This department is further divided into two department

ACCOUNT DEPARTMENT

Account department is responsible for repairing quarterly income

statement, cash flow statement and Balance statement.

TREASURY DEPARTMENT

Treasury department is responsible for managing funds and to

avoiding chance of misuse of funds.

MONITORING AND RECOVERY

In strict sense this department is legal hand of bank of Khyber. This

department negotiates all the debts and if its efforts go in vain then

they file litigation. This department provides full assistance to

branches in enforcement of actual recoveries of debt through legal

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process. They trace borrowers and their assets and servicing of

summons.

LONG TERM PROJECTS

This department is concerned with primarily with long term

projects. This duty is to identify those long term project that will

add significantly to development and progress of NWFP in

particular and Pakistan in general.

COMPUTER DEPARTMENT

No modern organization can be visional without computer. This

department is responsible for computerization of various branches

of Bank of Khyber. This department has developed network

software “internet” for the Head office etc.

FOREIGN EXCHANGE

This department is responsible for

• Maintaining FCA

• Dealing in telegraph drafts in foreign currencies

• Facilities of imports and exports to client

PUBLIC RELATION

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This department suggests how to improves relation with the public,

how to attract customers and how to enhance people to invest in

bank.

CREDIT DEPARTMENT

Credit division is for large loan sanction. This department handles

the request and proposal of borrowers. This department is

responsible for handling the lending activities of the bank. It

provides accounts the terms and conditions to clients. It is

responsibility of this department to accept or reject a proposal.

RRMC/RC

• Recovery of stuck off loans.

• Negotiate with customer.

• Banking court.

• Mortgages.

INTERNATIONAL BANKING

(2 Sections In Karachi)

a) It deals in foreign exchange.

b) It up-to-date information about foreign currency.4

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HUMAN RESOURCE DIVISION

Human resource division (HRD) plays a vital role in carving the

present and future image of an organization by managing

employees in the most beneficial and effective manner, the

functional arena of HRD consists of recruitment, training,

performance appraisals, planning and career development and

above all grooming of staff to adhere to office ethics and social

norms.

At BOK, they believe that manpower is the most important and

precious asset. The HRD tries to create an environment of mutual

trust and dignity and trying hard to pursuit the expression: “We

rather than I” so as to ensures best positive results. It is playing a

proactive role in capacity building, experience sharing,

strengthening analytical and policymaking, skill up-graduation to

help the staff in their endeavors to make BoK competitive, dynamic

and one of the best banks in the country.

HRD provides on the job as well as off-site training to the staff in

diverse areas of banking and management. The training relies on

both external courses at institutes of repute in the country and

internally arranged courses. The management is very cautious about

the training needs of the staff and every year a handsome budget is

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allocated for this purpose, our policy is to provide every employee

at least one opportunity to attend training program in each calendar

year.

In addition to above, BoK acknowledges professional acumen,

experience and expertise of its staff through regular financial

benefits in the shape of competitive salaries, cash awards,

promotions, academic, sponsorships and other incentives so as to

boost their morale for greater input towards betterment of the bank.5

HRD department includes:

1. Personnel and Establishment department

2. Public Relation department

3. Stationary department

ESTABLISHMENT SECTION

Establishment is another major section in P& E department; this

section is responsible for the following activities;

• Establishment of new Branches.

• Maintenance of existing Branches.

PROCEDURE OF ESTABLISHING NEW BRANCH

1.The management committee decides whether a new branch

should be established or not keeping in view the available

development funds.

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2.Establishment section assigned the responsibility to pre pare the

survey report for the establishment of new branch such as bank

name, number of branches capital structure, total deposits, liquidity

position, etc. the part two contain details about new branch,

information regarding the following items.

• Name of the proposed branch.

• Location of the proposed branch or other arrangements.

• Means of communications available at the proposed location.

• Confirmation of the branch location that whether it falls

within the municipal town area.

• Names, location and distance of nearest other bank’s

branches.

• Population of the area.

• The volume and value of agricultural mineral, industrial

production, import and export of area of branch operations.

• Detail of exiting schemes for agriculture mineral or industrial

development and their probable effect on the volume and

volume and value of present production, import and exports.

• Estimate income which the branch exports to earn within

three years of its operations, details of sources such as

interest return on advances, communion, funds, placed with

head office.

• Estimating the recurring expenditure for the proposed branch

profit/loss anticipated.

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• The survey officer submits with the survey reports with SBP.

SBP makes the final decision of granting license for.

• Once license is granted by SBP, establishment of new

branch, which involves some of the following:

• Legal contract with the owner of proposed branch building, if

any prior arrangement have been for the location of new

branch.

• Purchasing, leasing of necessary equipments (such as

computers, fax machines, safes, lockers) through bidding for

new branch.

• Insurance of branch equipment with the approved insurance

Companies.

MAINTENANCE OF EXISTING BRANCHES

The Maintenance involves all sort of expenditures which are

incurred either for the repair of capital assets or for conditions to

available capital assets, within the exiting branches and bank’s

residences the establishment section premium on issues capital to

the concerned branch, establishment section also handles the

vehicles payment of token face and replacement of any part of the

vehicles, office equipment.6

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FUNCTIONS OF ESTABLISHMENT DEPARTMENT

1. Acquisition, Disposal/ replacement of fixed Assets, including

vehicles.

2. Maintenance, up-keep of equipment/ renovation of fixed

Assets.

3. Routine visits to Branches, HO Department regarding

supervision of maintenance and branch requirements.

4. Negotiation, liaison with suppliers, contractors, Architects

and Landlords (lessor).

5. Arrangement of premises for branches, HO and execution of

lease agreements.

6. Inviting of tenders/ quotations for such job/works/goods.

7. Preparation of approval/ sanction notes.

8. Obtaining approval from P& W committees for such works/

goods.

9. Processing/ payments of bills, pertaining to such works/ jobs/

procurements.

10. Preparation of capital budget of the bank.

12. Supervision of Administrative matters and general

condition/ cleanliness of branches.

13. Liaison with branches regarding up-keep, maintenance,

acquisition of such assets & general condition of

branches.

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14. Security arrangement i.e. provision of security Guards,

Burglar Alarm System etc. to Head office and branches.

FUNCTIONS OF PERSONNEL DEPARTEMENT

1. They are engage in Personnel policy and Recruitment

Planning.

2. They are concern with promotion and transfers of the

employees.

3. Give loans, Medical leaves and Disciplinary actions to the

employees.

4. They give training to the employees.

5. They are engage in Human resource Development, Job

Rotation, Training, Career Development, Employee

Relation, Health Fitness Program

6. They arrange board meeting in the organization.

7. They also deals internees.

8. They forecast future needs and human resource planning.

9. They give salaries to the employees.

10.They are engage in screening and selection of employees.

11.It also give Post Retirement Benefits to the employees of the

bank.

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FUNCTIONS OF PUBLIC DEPARTMENT

1. Design & launch publicity of the bank of Khyber.

2. Arrange high level meetings with Governor/ chief minister/

provincial & federal Ministers arrange high-level

Government officials.

3. Accompany the managing director at the meetings as

principal staff officer.

4. Generate English bulletin on political/ cultural/ social

economic news.

5. Conduct protocol duties with the visiting dignitaries,

delegations & other luminaries.

6. Prepare press release in English & Urdu.

7. Keep close liaison with all Pakistani political/social leaders.

8. Keep liaison with all the international organizations like

UNHCR/ICRC/UNOCHA/Afghan commissioner ate, NWFP,

Peshawar too coordinate in relation to issue of BOK.

9. Keep close contract with local industrialists, businessmen &

Sarhad chamber of commerce & industry for promoting

mutual trade relations.

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FUNCTIONS OF STATIONERY DEPARTMENT

1. Administration and overall supervision of the department as

Incharge of the Department .

2. Putting notes for seeking prior administrative approvals for

procurement of printed and security stationery from purchase

committee and after approval ; order are placed to printer.

After receipt of respective consignments ;payment notes are

submitted to purchase committee.

3. Correspondence with HO/Branches/Departments.

4. Being the Secretary of Stationary Committee, meeting of the

committee are arranged for making decision with regard to

introduction of new items; amendments of existing forms and

pads with consultation and consent of members of

committee.

5. Rectification of audit objections and removal of any

complaint of the Branch/Department in respect of supply of

items at the stationery required.

6. Any other matter which management wants to discuss in

respect of supply of printed and security stationery items.7

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REFERENCES

1. Noor Rehman. (1997-1999). An Internship Report on the The

Bank of Khyber. IMS, Peshawar, p –12, unpublished material.

2. Sir Ahmar, personnel department, The bank of Khyber

3. The Bank of Khyber, Information Memorandum 1998, p – 5

4. Waqar- ul –Haq, Session (2000-2003), IMS Peshawar, pp

20-26, unpublished material.

5. The Bank of Khyber, Annual Report, 2003, p- 21

6. Nauman Amin, Session (1999-2002), IMS Peshawar, pp 49-51,

unpublished material.

7. HRD department, The bank of Khyber, Head office Peshawar

cantt.

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CHAPTER # 3

PERSONNEL POLICES

RECRUITMENT POLICY

OBJECTIVES

Financial institutions require sound management and a high degree

of technical expertise as well as competence and integrity.

Recognizing that the quality of Human Resources will determine

the future of the bank certain objective have been laid down as the

cornerstone of our recruitment policy which are:

1. That the highest standards of efficiency and integrity be

maintained by merit being the sole criteria for selection.

2. That induction of officers be made through a competitive

process based on well defined criteria in line with prevailing

practice in the banking industry.

3. That regular and permanent induction be made in officer

cadre only without clerical and other non-clerical staff.

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4. That the bank may pay competitive remuneration in line with

other banks, to attract staff of higher professional caliber, for

induction at an appropriate level.

POLICY AND PROCEDURE

1. Appointment shall be made both through direct recruitment and

by promotion from lower posts on merit.

2. Appointment to the posts of officers and supporting staff shall be

made by the Competent Authority on the recommendation of

selection Committee to be constituted from time to time.

APPOINTMENT CONDITIONS

FOR EXPERIENCED BANKERS

Graduate with at least three years banking experience. Preference

will be given to the candidates who have passed banking diploma

examinations. The above conditions may however be relaxed by

competent Authority on merit of each case.

FOR FRESH CANDIDATES;

OFFICER GRADE-II AND ABOVE

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Master’s Degree with a minimum of 60% marks from any

recognized with preference to MBA, MPA, M.Com. and

Economics.

JUNIOR OFFICER AND OFFICER GRADE-III

Graduate/Post Graduate from any recognized university. Suitability

of a candidate for the grate shall be determined by the Selection

Committee.

Every candidate must be declared physically fit by a registered

Medical Practitioner appointed by the bank before entering the

service of the bank.

APPOINTMENT PROCEDURE FOR OFFICER GRADE-II

AND ABOVE

1. All the available vacancies for fresh recruitment shall be

advertised in the National/CL newspapers as and when deemed

appropriate by the Bank.

2. The upper age limit for fresh candidates shall be 28 years.

Appropriate age relaxation may be granted to candidates possessing

qualification of Chartered accountant, ICMA or Ph.D.

3. A merit list on the basis of marks obtained by each candidates in

test and interview shall be prepared for recruitment.

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4. The Selection Committee may relax the requirement of written

test in case of candidates possessing qualifications of Chartered

Accountant, ICMA and ph.D.

APPOINTMENT PROCEDURE OF OFFICER GRADE-III/

JUNIOR OFFICERS

All such appointment shall be made by the Selection Committee

and suitability of a candidate for the appropriate grade shall be

determined by the Selection Committee.

APPOINTMENT IN NON-OFFICER CADRE/ DRIVER AND

SECURITY STAFF

Appointment to all such posts shall be made by the selection

committee on the suitability and fitness of the candidate,

irrespective of educational qualifications.1

The nomenclature of the various posts in the Bank shall be as

under:

• Executive Vice President

• Senior Vice President

• Vice president

• Assistant Vice President

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• Officer Grade-I

• Officer Grade-II

• Officer Grade-III

• Junior Officer

• Driver

TERMS AND CONDITIONS OF SERVICE

PROBATION AND CONFIRMATION

The probationary period in respect of officers and subordinate staff

will be one year and shall be extendable at the discretion of the

Competent Authority. However, in case of officers recruited on the

basis of previous experience, the Competent Authority may either

condone or relax the probation period up to six months.

In the event of an employee failing to show satisfactory progress

during the probation period, the period of probation may be

extended further on his services dispensed with or without any

notice. The probationary period shall automatically stand extended

if the bank does not issue confirmation orders. The Managing

Director or any person duly authorized by him may confirm the

services of an employee.

TERMINATION OF SERVICES

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i. The bank may dispense with the service of a permanent

employee by giving him/her one month’s notice or pay in

lieu of the notice period. The power to terminate the service

of an employee shall be exercised by the Managing Director

or any officer authorized by him. Such termination of service

of an employee is at the absolute discretion of the bank and it

shall not be entitled to any form of compensation from the

bank.

ii. The bank reserves the right of dismissing an employee

without any notice/ assigning reasons if he is found guilty of

misconduct, fraud, breach of trust, or any neglect from duty.

RESIGNATION

A permanent employee shall not resign from the service of bank

without giving three month’s prior notice to the bank in written

(one month will be considered of 30 days). Failure to give such

notice shall make the employee liable to pay the bank a sum equal

to his three-month’s salary. The temporary employees shall be

required to give one month’s notice to resign his appointment or to

pay the bank a sum equal to one month’s salary.

TRANSFERS

All employees of the Bank are liable to be transferred to the Head

Office or Branch/office of the Bank anywhere in Pakistan. In the

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event of non-compliance by the employee, he shall be liable to be

terminated from the services of the Bank.

PROMOTION

i. Promotions to various posts of officers shall be made on

merit and no employee shall have a claim to be promoted by

virtue of seniority alone. In case, any employee in the higher

post shows signs of deterioration, he shall be liable to

immediate reversion to the lower post previously held by

him.

ii. For promotion to the posts for which special qualifying

examinations or other conditions have been specifically laid

on, only the employee who passes such examination and

fulfills such other conditions, shall be eligible and no

relaxation shall be made in this belief except, in special cases,

by the Competent Authority.

SENIORITY

(a) For proper administration of cadres/grades, the bank shall cause

a seniority list of the employees to be prepared in January each year

and circulated amongst the employees but nothing contained in the

seniority list shall be construed to confer any vested right to a

particular seniority in such cadre or grade, as the case may be.

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(b) In the case of direct recruits:

• Persons who are selected for appointment earlier by a

Selection Board or Committee shall rank senior to those

selected later.

(c) In the case of departmental promotes:

i) Employees who are approved on the recommendations of the

Promotion Committee for promotion to the higher grade on an

earlier date shall rank senior to those who are approved on a later

date, provided that an employee eligible for promotion who is

inadvertently omitted from consideration in the original reference

and is thus overlooked, when he is subsequently considered and

approved for promotion shall take his seniority with the original

batch.2

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HUMAN RESOURCE DEVELOPMENT AND TRAINING

BACK GROUND

The bank of Khyber recognizes the need to enhance the

productivity, performance and value of its employees through

continued training/education. The bank initiated the preparation of

human resource development policy and plan by keeping in mind

these objectives.

POLICY FEATURES

The salient policy objectives of human resource development

program are:

1. To develop skills to insure that every officer at a minimum is

capable and qualified for his/her current position.

2. To offer an orientation course for new employees (General

Banking):

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a. To promote a common culture of the bank of Khyber.

b. To familiarize the new entrants to the services rules of

the BOK.

TRAINING & DEVELOPMENT

The banking of Khyber’s training and development programs aims

to improve current and future employee performance by increasing,

through learning, an employee’s ability to perform, usually by

increasing his or her skills and knowledge.

OBJECTIVES

Increase Bank’s productivity by:

• Improving performance of employees

• Increasing adaptability and flexibility of each employee

• Increasing the level of commitment

• Reducing the employee turnover and absenteeism

PURPOSE

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• The major purpose of BoK training plant is to remove

performance deficiencies, whether current or anticipated, that

are the result of employee’s inability to perform at the desired

level, and be more productive.

• BoK training plan is also very important because ever

changing financial/banking sector demand flexibility and

adaptability in the employees.1

Training & development program of the bank of Khyber is designed

in three phases:

1. Assessment phase

2. Implementation phase

3. Evaluation phase

ASSESSMENT OF TRAINING NEEDS

The Assessment of training needs was simplified and a training

needs survey was used to gather data on the employee’s perceived

need for training as well as the immediate supervisor’s assessment.

The employees name was recorded for each course where his

choice matched that of that supervisor.

IMPLEMENTATION

The implementation phase of training plan involves the actual

delivery of training. This requires resolving issues such as

40


determining course content, scheduling courses, contracting

/assigning instructors, choosing training methods, media and venue.

The following ideas may be considered:

1. CURRICULUM COMMITTEE

In order to ensure that the course content is relevant and current and

the course schedule reflects the needs of the organization, it is ,

suggested that a Curriculum Committee be set up which will be

responsible for the approval of course schedule and course content

as well as serve as the advisory body for training.

2. COURSE SCHEDULE FOR IN-HOUSE TRAINING

The courses scheduled have been chosen based on;

• Continuation of the core competencies banking courses in

General Banking, Advances and Foreign Exchange.

• Suggestion of External Auditor and others.

3. REGIONAL FOCUS

BoK are looking to organize training at regional levels, the concept

being that BoK take the training to the employees rather than

41


bringing the employees to the training, where ever possible, The

regional centers are likely to be Karachi, Lahore, Islamabad,

Abbottabad, D.I.Khan and Mardan. In the connection, BoK will be

required to develop trainers locally.

4. SPECIALIZED TRAINING

As laid out in the career path proposals, it is intended that

employees will enter specialized streams or career paths. They will

then be imparted specialized training in their relevant fields to

become specialist in that field. Thus, BoK will have to tailor the

training programme to provide the required specialist training.

5. MODULARIZATION

To provide more flexibility and reduce time away from work, the

courses have been modularized. Thus for example the General

banking course may now be delivered in ten modules of modules

BB1through LB4instead of one, two-week course.

6. TRAINING MATERIALS

The training Materials used must be relevant which the curriculum

committee will insure. Further they must address the skill base at

42


the level of the participants and must be compiled that any trainer at

any location can use them.

7. BANKING DIPLOMA EXAMS

The personal Department has been planning to offer some

assistance with DAIBP exams since last year, at the repeated

requests of employees.

It is going to be difficult to arrange lectures for all the bank’s staff

over a two to three months period. Therefore, it is planned, that an

information packet on the subject will be prepared and distributed

to all interested.

8. TEACHING METHODS

It is felt that BoK teaching methods needs to be changed from

classroom lecture style to a more participatory workshop approach.

Further, BoK plan to work in a way so that least amount of time is

spent away form the job and learning is reinforced with actual on

the job training.

EVALUATION

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Any training programme undertaken is than evaluated to analyze

if objectives are being achieved and if the benefits justify the cost.

Evaluation techniques used could be feed back surveys of trainees,

tests, and results as mirrored through customer comments,

profitability, decrease in Audit Objections, External Audits, Results

on industry standard tests such as DAIBP and comments of the

employee’s immediate supervisor. BoK believe that an evaluation

survey method may be the best option for evaluation of the

programme and plan to use an evaluation from which will be

designed in due course.

TRAINING AND DEVELOPMENT

The Bank of Khyber started its operations in 1991 with a staff of 20

officers. Initially the bank hired experienced staff from other banks

who were assigned to the newly opened branches of the Bank. As

the Bank grew and consolidated its operations the need for training

both for emerging now issues, as well as strengthening of basic

competencies, began to be addressed.

In the year 2001, the Bank sent 61 officers for training at external

institutes and arranged training at the Head Office for 67 officers. It

may also be noted that training courses of the IBP are now also

being arranged at regional centers.

This year the bank has arranged courses arranged courses for

groups of 20 to 25 participants of the following important subjects:

44


• Credit Management, Evaluation, Documentation &

Recovery.

• Customer service in Banks.

• Applied Accounting.3

ALLOWANCES AND FRINGE BENEFITS

The Allowance and other Benefits admissible to the permanent

employees of the Bank of Khyber shall be prescribed by the board

and changed/modified from time to tome. The existing Allowances

and benefits of the bank are as under:

UTILITIES

All officers are entitled to utility charges at the rate of 10 % of the

basic pay. The charges are admissible during tours and training

within the country/abroad and leave of full pay except extra

ordinary leave.

REFRESHMENT CHARGES

The Officers who are required to sit late in connection with bank’s

work or required to attend the office on closed holidays may be

allowed refreshment charges up to Rs. 200/- per day by the

45


Personnel and Establishment Deptt., on the recommendation of

their controlling officers.

INCREMENT

1. Annual increments shall be granted to the employees on 1st

January each year provided the work and conduct of the employee

concerned is satisfactory and clearance has been granted by P & E

Department.

2. The following provisions prescribe the condition in which service

counts for increments in a time scale:-

i) All duty in a post on a time-scale and periods leave other

than extra-ordinary leave count for increment in that scale.

ii) An employee who has rendered at least six months service

in a scale shall be entitled to annual increment on 1st

January. However, this condition may be relaxed in case

of officers recruited on the basis of previous experience.

GRANT OF HONORARIUM

The Managing Director may grant honorarium to an employee from

the funds of the Bank as remuneration for work performed which is

occasional in character and is either so laborious or of such special

merit so as to justify a special reward.

46


DISBURSEMENT OF SALARIES

Pay and allowances of the employees will be disbursed on the 25th

day of the month. On special occasions such as Eid-ul-Fitr and Eid-

ul-Azha(for Muslim employee) and Christmas (for Christian

employees) the Managing Director may authorize advance payment

of salaries to the Bank employees.

The Managing Director may allow any extra facility over and above

the entitlement of any officer of the bank in the interest of Bank’s

business or under unavoidable circumstances etc.

CONVEYANCE ALLOWANCE/ MAINTENANCE

ALLOWANCE

All officers not provided with an official transport will be entitled

to conveyance allowance or Motorcycle/ Motorcar Maintenance

allowance at the rates and subject to the conditions specified below:

i) Conveyance Allowance/ Rs. 500.00

Motorcycle Maintenance per month

(for all Allowance employees)

ii) Motorcar Maintenance Rs. 1000.00

Allowance per month

(for Officers only)

TRAVELING ALLOWANCE/ DAILY ALLOWANCE RULES

47


● Daily allowance will be admissible for each day of absence from

head quarter, to cover the ordinary charges incurred by an

employees as consequences of such absence & can be drawn on

tour & also on relieving

● The employees up of senior Vice President may stay in

government Guest houses, public Sector Corporation rest Houses &

Hotels, they can claim room rent charges on production of receipts

subjects to a maximum of three L.A, at all station accept provincial

& federal capitals where the following Vales will be allowed for

room rent.

OG II & below officer Grade III up to Rs.1000/-per day.

OG I & AVP up to Rs.2000/- per day.

VP & SVP up to Rs.2500/-per day.

● Executive Vice Presidents may stay in Hotel & claim actual

charges including room rent, food charges, telephone & other allied

expenses if incurred in connection with Bank’s business/ work.

● The employees may claim T.A advance equal to 80% of their

entitlement & adjust the same on the return from tour. The T.A, bill

shall be submitted written two months after the tour to regularize

claim.

CONVEXANCE CHARGES

48


Actual avoidance charges are admissible to officer for official

journey at an outstation while on tour & also for local official

journey on furnishing a certificate with the T.A, bill that the amount

was actually spent & no official transport was used such journey.

Other employees will be emitted to actual fare of public transport.

ENITLEMENT OF OFFICERS FOR OFFICAIL JOURNEY

i) All the officers are entitled to travel buy air in economy class

both on domestic as well as inter national flights subjects to

approval of controlling officer & will claim actual fare of the

economy class, the competent authority may allow fare of other

class.

ii) Other employees are entitled to travel by train in economy class

or by bus or flying coach. While traveling by train they are entitled

to actual fare of second/economy class & while traveling by road

they are entitled to actual fare of bus/flying coach.

TRANSFER GRANT

Transfer Grant will be admissible to all the employees at a uniform

rate as under once in a calendar year, unless the transfer is required

in the interest of the bank & is not at the personal request of the

employee whereby it may be allowed more than one time a year.

49


Employee possessing family = one month salary

Employee not possessing family = half month salary

FOREIGN T.A RULES

The bank shall generally follow the T.A Rules of the Federal Govt.

expect that incidental charges covering transportation, telephone,

entertainment etc shall be admissible at the rate of 20% of the D.A

entitlement to the officers proceeding on officer tour/training

abroad.

HOUSE RENT ALLOWANCE

All employee not provided with residential accommodation by the

Bank are entitled to house rent allowance at all stations at 70% of

the basic pay. This allowance is admissible during the period of

joining time, tour, training and leave on full pay except extra-

ordinary leave.4

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LEAVE RULES

CASUAL LEAVE

An employee will be entitles to 20 days. Casual leave pay in each

calendar year. Such leave will not be carried forward to the

following year & will lapse if not availed during the year. The

casual leave will not normally be granted for more then 5 days at a

time.

• Casual leave is intended to meet unforeseen Circumstances.

• Casual leave will not be combined with any leave.

EARNED LEAVE

(a) The entitlement/admissibility of the earned leave to an employee

enrolled on the strength of the BoK shall be whorled out from the

date of joining as under:

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1. Earned of 48 days shall be admissible in every calendar year.

2. Leave for periods of less than one year will be calculated on

prorate basis ignoring decimal fraction.

3. Earned leave of 48 days will be credited only after completing

one year of services.

(b) The earned leave may be accumulated & availed by the

employees up to a maximum of one year in the entire service.

PAY DURING LEAVE ON FULL PAY

Pay admissible during leave on full pay shall be the same as drawn

in the preceding month subject to pass.

LEAVE WITHOUT PAY

RECREATION LEAVE

RL may be granted for 7 days outside the leaves account once in a

calendar year. Recreation allowance equal to one basic pay will be

admissible to the employees.

MATERNITY LEAVES

52


ML shall be admissible to female officers three (3) times in the

entire service. The leave may be granted to the extent of 90 days in

all from the date of the commencement or forty five days from the

date her confinement, which ever be earlier the leaves so granted

will be leave on full pay, but will be first adjusted against the

earned leave balance of the employee & the remaining period will

be created as leave on full pay outside the leave account.

MEDICAL LEAVE & STUDY LEAVE

Medical leave and study leave can only be availed with the prior

written consent of the competent authority such leave shall not be

claimed as a matter of right & will be decided on the merit of each

case. In case of medical leave an opinion from the bank’s approved

medical advisor may be sought when seen fit by the competent

authority. Medical leave or study leave if granted will be deducted

from the earned leave account of the employee on full pay & the

remaining duration treated as leave without pay.

ENCASHMENT OF EARNED LEAVE

Encashment of earned leave up to six months on full pay shall be

admissible to an employee during the entire services provided he

has completed 4 years of service on the date of application.5

53


LOANS AND PENALTIES

LOANS FOR STAFF

The BOK offers the following types of loans to their staff.

1.House building finance

2.Car/motor cycle

3.Personel loans

4.Car lease finance

PURPOSE OF STAFF LOANS

The basic purpose of staff loans is to relieve their employees or

staff members from any type of problem they are facing regarding

their accommodation, connivance or any problem that is going to

hurt their performance while they are on the job.

54


TOTAL SHARE OF THE STAFF LOAN

Bok offers 5% of the total deposits of the year for the staff loans.

For example, if the total deposits for the year are 100,000/- then the

staff loan for that year will be 5% of 100,000/- i.e. 5000/-

PROCEDURE FOR THE STAFF LOANS

Every November 15 to December 15 a Circular is circulated to all

branches of the BoK in order to make aware all the wishing

employees if they want to avail this facility offered by the Bank to

them during this periods. These employees or staff members then

forward their applications to the concerned person in the Personnel

Department. These applications are then checked according to the

criteria given for each type of loan, those found eligible, their

applications are accepted according to the set procedure and are

forwarded for the due procession.

CRITERIA AND PROCEDURE FOR HOUSE BUILDING

The criteria and procedure followed for the House Building Finance

is as follows;

• The employee applying for this loan should have a length of

service of three years.

55


• The selected employee for the loan will be paid a loan equal

to his eighty (80) basics pays.

• This loan will be paid in two equal installments. The first

installment will be paid when the application is accepted and

the second installment is given after the property on which

the house is going to be build is Mortgaged with the Bank.

• The length of recovery for this type for loan is twenty years

(20) OR 240 installments.

CRITERIA AND PROCEDURE FOR CAR/MOTOR CYCLE

LOAN

• The criteria and procedure for this type of loan is followed

as;

• The person applying for this loan should have a service

period of at least one year.

• The amount of loan payable for the car is one hundred and

fifty thousand rupees only. (150,000/-) with a mark up rate of

8%.

• The amount of loan payable for the motor cycle is forty

thousand rupees only (40,000/-). There is no mark up on

these loans; it is free of mark up.

• The recovery period for this type of loan is 10 years.

HOUSE BUILDING ENHANCEMENT

56


This type of loan comes into the frame when an employee or staff

member who has already applied for the house building loan and is

accepted for that purpose as well and during this course he either

gets Promotion or his salary increases by any special increment so

he becomes eligible for this loan, two things should be checked

while giving this loan;

Evaluation of the property, what is the value of the property for

which he is asking for this type of loan? For example, if he the loan

available for him is 150,000, then the value of the property should

be round about 170,000/-

Legal opinion must be taken from the lawyers in order to avoid the

complications of Audit.

PERSONAL LOANS

Their criteria and procedure for the Personal loan is that the

applicants should have.

• Completed at least one year of his service.

• The applicant is entitled for three basic pays for the loan.

• The rate of markup for this loan is 11%.

• It is payable within three (3) years.

• The employee can avail this loan for three to four times

during his/her service.

CAR LEASE

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This loan was first started on commercial basis for general public,

but due to the consistent demand of the staff members of the BoK,

the higher authorities approved it and the bank started offering this

to its own employees as well.

Lease is an Islamic mode of financing and is in accordance with the

statement of the BoK as well, which states that the bank will

develop into a full fledge Islamic bank with the passage of time.

CRITERIA AND PROCEDURE FOR CAR LEASE

The criteria and procedure for the car lease is as follow;

• The employee applying for this should have five (5) years as

a length of service.

• He/she will have to pay 10% as a sown payment.

• The markup rate will be 6%.

• He/she will have to pay 3%as an Insurance per annum..

• The vehicle should be newly purchased.

• The vehicle should be registered at the name of the bank.

• If the employee has already availed the car loan then it

should be adjusted before disbursement.

• Junior officer, O.G-I, O.GII can avail up to Rs.300, 000/-

• O.G-I and AVP and above can avail up to Ts.700, 000/- 6

58


DISCIPLINARY AND GENERAL CONDUCT RULES

GROUNDS FOR PENALTY

Where an employee of the Bank, in the opinion of the authority

i) Is inefficient or has ceased to be efficient ;OR

ii) Is guilty of misconduct ;OR

iii)Is corrupt, or may reasonably be considered corrupt

PENALTIES

The following are the minor and major penalties, namely :-

MINOR PENALTIES:

i) Censure

ii) Withholding, for a specified period, promotion or increment,

otherwise than for unfitness for promotion or financial

advancement in accordance with the rules or orders pertaining to

the service or post;

iii) Recovery from pay of the whole or any part of any pecuniary

loss caused to the Bank by negligence or breach of orders;

MAJOR PENALTIES:

59


1. Reduction to a lower post or time-scale, or to a lower stage in

a time-scale:

2. Compulsory retirement;

3. Removal from service; and

4. Dismissal from service.7

REFERENCES

1. The Bank of Khyber Employees Service Rules (1998), pp 6-8


3. Sir Zahid, Personnel department, The bank of Khyber Peshawar



6. Miss. Tayyaba Akhtar, Personnel department, The bank of

Khyber.


60


CHAPTER # 4

ANALYSIS

ADMINISTRATIVE ANALYSIS

1. SPACES SHORTAGE

It is observed that branches suffer from space shortage. The seating

arrangement is not sufficient as compared to the number of

employees and customer.

2. SLOW CAREER GROWTH

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Promotion is one of the motivational tools, promotion policy of

Bank of Khyber is very slow. The opportunities for upward

advancement are very few.

3. CENTRALIZATION

BoK has a centralized structure. There is no delegation of authority

to the lower management/staff. In order to improve the performance

of the staff and to build their confidence, some authority must be

delegated to the lower management.

4. LACK OF SPECIALIZD TRAINING

In BoK training is provided on basis of generalization rather than

specialization. After completion of training he/she is inducted into a

specific field. Due to lack of knowledge he or she faces difficulty to

perform the assigned job.

5. NEGLIGENCE OF RULES AND REGULATIONS

It has been noted that the Bank’s officers usually neglect the rules

and regulations either intentionally or unintentionally, because

these have not properly communicated to them. Their prompt

communication must be ensured and the employees must be

informed about the penalties in cases of negligence.

62


6. POOR JOB ROTATION

Branch officers are not properly rotated. It is noted that an

experience banker from Deposit section doesn’t know about the

work of remittance department. So they must be rotated in all the

departments of the banking order to get familiar with the working

of different department in order to have a know how of the whole

system.

7. IMPROPER DISTRIBUTION OF DUTIES

In BoK there is improper distribution of duties and responsibilities.

It is being observed that sometimes an officers of the same grades

may less or more responsibility than another officer of this grade.

8. PRODUCT RATES

When BoK’s product rates are compared with the competitors, one

can notice that they either have the same or lower rates. So in order

to attract the customers, BoK must offer rates above the market to

have a better market share.

9. WORKING SETUP

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It is observed that there are some deficiencies in the branch setup,

which creates extra disturbance, and excessive movement, which in

turn effect, the efficiency of employees and thus that of the whole

organization also.

10. SEPARATION OF ACTIVITIES

There is no separation of activities e.g. clearing of cheques. This is

partially done in deposit department and partially in accounts. This

creates confusion and conflicts. In order to avoid mishaps, there

should be complete separation of activities.

PERSONNEL MANAGEMENT ANALYSIS

1. NEED FOR BETTER TRAINING PROGRAM

It has been noticed that the training program of BoK is not

adequate. Special marketing training should give to employees who

are concerned with marketing. They should learn new methods for

motivating customers. The training program of the bank should

include scientific techniques to improve the decision-making, and

Inter personal as well as individual needs of the employees.

2. MARKUP CHARGES

64


Like all the other charges a higher rate of markup on short- term

loans in comparison to other commercial banks. This may causes

reduction in its clients.

3. MARKETING VISITS

A very useful mode of contact is through personal marketing visits.

Such visits are an important by product such as gaining information

about the customer’s financial and business position, about his

marketing reputation and creating a feeling of importance in the

minds of client.

4. LACK OF PUBLIC COMMUNICATION

Communication plays a vital role in any business circle, however, it

has been noticed that BoK employees are lacking the skills of

effective communication. Proper attention must be given to enhance

the communication skills of the employees from top to bottom.

5. MARKETING AT DESK

Bank employee come in daily contact with many people who

happen to deal with the bank as casual remitter or beneficiaries,

drawer of bills, safe custody service holder, travelers and variety of

other people with whom that bank has no account or regulars

65


relationship. The bank officers are doing very little on their own to

explore the possibilities of selling banking services to them as a

marketing contributor.

POLITICAL ANALYSIS

INTERNAL POLITICAL ENVIRONMENT

1. In personnel and establishment is no systematic reward that result

is lower employee motivation. Due to which the experience project

officers frequently leave personnel and establishment. This result in

constant shortage of project officer.

2. There is a very weak coordination among employee of personnel

and establishment. It serve as factor toward is efficiency of which

on it.

3.There is no political pressure for strong coordination between

different institutions so as to lower the cost of employees.

66


4. There is lot of political interference in the recruitment system of

the bank that result in inefficient management which in the long run

result eventually in bad portfolio.

5. Having 51% share of Bank of Khyber provincial government

always interfere in regular operation of bank which has strong

impact on efficiency of bank.

SWOT ANALYSIS

STRENGTH

1. First bank to start Islamic banking in Pakistan.

2. Provincial government backing and confidence of people due

to government bank.

3. It has modern technology and resources.

4. Staff has combination of young and rich in experience and

working skill.

5. Officer attractive schemes and ,more saving for customer

from time to time.

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6. The Bank of Khyber has market confidence in providing

products and services to the customers over the year.

7. Bank of Khyber has the ability to cope with pressure of

competition.

8. Bank has the good with of the people and it is also an assets

to it.

9. Bank’s management has the motivation to make it best bank

of the country.

WEAKNESS

1. Employees are lacking motivation. Bank is not limits and

thus reducing the efficiency.

2. Communication gap between different levels of management.

3. The lower level management lacks clear direction and is not

having the managerial depth.

4. Lack of experienced commercial bankers in the top

management positions

5. Lack of modern banking approaches like ATM and

commerce on line banking.

6. Marketing skills of the bank are good but they have little

presence at different media.

7. Low salary structure as compare to competitors.

8. Not in the position to compete with other banks.

9. Lack of highly trained resource staff. Increasing trend of bad

loans.

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10. Lack of modern technology.

OPPORTUNITIES

1. Opportunity to open branches in northern areas specially

Timergara etc because there is 100% current deposit.

2. Extending banking hours and providing more branches

facilities to customers.

3. All branches are computerized therefore no difficulty

in thinking it into on line banking.

4. Bank should take interest in the new market segments like IT

business, software business etc.

5. A new serves to its product line.

6. Increasing credit facilities to lower income groups, thus

reducing the risk of loss and also improving the image of the

bank.

7. To open a branch in Afghanistan.

THREATS

1. Political, economical situation of the country. Reduction in

the business activities in the country.

2. Deteriorating confidence of people in bank uncertainties of

the investors.

3. Modern technology used by other commercial banks.

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4. Starting Islamic banking is threats for BoK because if it is

flop it will be a big loss for BoK.

5. Increasing number of private/foreign banks in the country.

6. Reducing the rates of savings in different segments of people.

7. Global technological advancement.

8. Bank Alfalah and other commercial banks is the biggest

threat for BoK.

9. Qualified staff working in other banks.

For “SWOT” analysis we can conclude that the management of the

bank should adopt systematic planning for the bank growth, talking

with them all management levels of the banks, discover new

segments of the customers, offering schemes for its customers.

Similarly Bank of Khyber has to focus on potential customers and

give proper attention to every customer and their need then it will

become one of the leading and comprehensive bank.

Emphasis on present customers by giving them personal Services

and targeting the private potential customers instead of Government

70


deposits at high interest rates. Creeping trend of non-performing

loans.

CHAPTER # 5

RECOMMENDATION

The following findings and recommendations are based on personal

observations and analysis. The given recommendations will help to

cope the problems being faced by the bank and will enhance the

efficiency and performance of the bank of Khyber.

1. SPACE SHORTAGE:

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During my internship in the Head office Peshawar I observed that

there is shortage of space at branch. There is no proper and easy

seating arrangement for the customers. To over come this problem,

the bank either may hire the adjacent building or simply can shift to

some other place.

2. BETTER TRAINING PROGRAMS

It has been noticed that the training program of BoK is not

adequate. Special marketing training should be given to employees

for motivating customers. The training program of bank should

include scientific techniques to improve decision making and

interpersonal as well as individual needs of an employee.

3. DECENTRALIZATION

Some authority and responsibility should be delegated to the lower

grade staff as well so that they should also consider themselves

important and responsible. This will also be motivating factor for

them and results in greater efficiency.

4. PROPER CHECKING

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There is no proper checking system on the entrance of Head office.

For safety purposes, there should more security measures, besides

special checking instruments at the main entrance.

5. BETTER COMMUNICAION

The management of BoK should concentrate on improving upward

communication so as to have better feedback system involvement in

the bank operation.

6. INCREASE IN NUMBER OF TERMINALS

The BoK Head office is computerized but still, there is shortage of

terminals and personal computers. This thing also affects the speed

and accuracy. For the increase in number of terminals and purchase

of personal computers. The provisions of above facilities will

improve the accuracy and speed and will enhance the efficient

working.

7. INTRODUCING CAREER PLANING

As a matter of personnel policy, personnel department should

prepare career plan showing their future growth potential.

8. MERITORIOUS RECRUITMENT

73


Appointment in the bank should be strictly on merit basis with no

other favor given to any candidates.

In the BoK connection play an important role in recruitment

decisions. Recruitment should be based on relevant qualification

and experience particularly in the field of business administration,

financial management, and computerization and marketing expert

through competition, which will ultimately attract better competent

employees in the bank.

9. MARKETING VISITS

A very useful mode of conduct is personal market visit. Such visits

should be properly planned with regularly.

10. TRAINING ACADEMY

The BoK does not have its own training academy. The training to

newly recruited employees is given in the training academies of

other banks. Similar is the case for existing employees. To fulfill

the requirements of training of the new and existing employees to

receive training of the peculiar and specify working functioning of

the BoK.

11. SHORTAGE OF EMPLOYEES

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Shortage of employees increases the workload on existing

employees and ultimately reduces the output and motivation level

of employees. to overcome this problem job description should be

revised and grouped together in order to create new jobs.

Recruitment should be done in order to fill up these new vacancies.

In this way the workload on employees will be reduced, operations

will be stream lined and employees will feel comfortable in

performing their duties more effectively.

12. MORE FRIENDLY ENVIRONMENT

More friendly environment should be created because it will help to

gain the interest of employees in work. Noise in the office should

be reduced because it has unfavorable impact on the working

environment. Separate place or section should be created for each

separate task and more space should be provided. It would also be

of greater help in establishment of friendly environment.

13. USE OF MOTIVATORS

Individuals must have a competent enough job to motivate him, to

be a challenge for him. Jobs must be with responsibility of

achievement, recognition, advancement and growth. Such

motivators should be used for efficient working.

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14. ENHANCED CUSTOMER SERVICES

Constant improvement in customer services are needed in today’s

competitive environment. Personalized banking should be

introduced to attract more customers. Equal respect should be given

to all customers.

15. INTORDUCTION OF MANAGEMENT BY OBJECTIVES

The concept of MBO should be introduced in the bank where the

subordinates should be expected to formulate objectives by

themselves. This will ensure the setting up of objectives according

to the capabilities of the individuals. In addition, it will also help in

achieving goals because they are involved in the process of goal

setting.

16. PROPER JOB ANALYSIS

A detail and systematic study of the job should be done to know the

nature and characteristics of the people to be employed. This will

help in identifying the training needs, evaluating the job and in

appraising the performance of the employees.

17. INTERNATIONAL BANKING

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BoK should expand its branches, not only in Pakistan but also

outside the country now.

18. LATEST COMPUTER EQUIPMENTS

Latest software should be introduced in the bank so that the data

processing speed of the computer can be enhanced.

19. CUSTOMER CARE COUNTER

Customers satisfaction is the key to success. They need proper

attention. The Head office is understaffed and employees are over

loaded, it creates more problems for them when customers disturb

and interrupt them while working. Therefore, for the benefit of

customers and smooth working of bank, there should be a customer

care counter to guide and help the customers.

20. BRANCH NETWORK

The BoK has 29 branches all over the Pakistan and Azad Kashmir.

23 of the total branches are located in NWFP and there is only one

branch for the whole of Punjab province located in Lahore. For

Sindh province, there are two branches both located in Karachi and

similarly one branch for whole Azad Kashmir and one for

Islamabad.

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This branch network is too small to compete with other banks. The

branch network should be improved and number of branches should

increase to reach and provide services to maximum number of

customers.

21. SCHOLARSHIPS PROGRAMS FOR DESERVING

EMPLOYEES

Scholarships programs should be designed for deserving employees

of BoK for higher education and training in foreign universities.

Every year the bank should finance and send their employees for

further training within the country and abroad to enhance their

knowledge and skill.

This will enable the employees to attain the strategic objectives of

the bank and increase the over all business and profitability

portfolio of the BoK.

CHAPTER # 6

CONCLUSION

Based on the findings and recommendation made in the previous

chapter of the report, the action plan for scholarship programs to

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enhance the education and skill of the deserving employees is given

here as under:-

REASONS

1.The BoK has about 400 employees and most of them are simple

graduates.

2. Persons holding degrees of foreign universities are not keen and

willing to join the BoK. They are always trying to join the

multinational companies or foreign banks.

REMEDIES

The following remedies are suggested to cope with the situation.

• The BoK should stress on education and experience.

• The BoK should constantly give incentives and opportunities

to its employees to enhance and improve their education

profile.

For this purpose the best option, which the BoK can avail, is to

started scholarship program for its employees to study in country’s

best universities or aboard to get degree of MBA or MBA- banking

and finance and ph.D etc.

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BIBLIOGRAPHY

Decenzo, David A, and Stephen P. Robbin. (1996) Human

Resource Management. New york: John Wiley And Sons, Inc New

York: Mc Graw--- Hill Book Company.

Mamoria, C.B., Dr (1987). Personal Management (5th edition).

Bombay: Himalaya Publishing House.

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Koontz, Hoaried, Donnell, Cyrilo and Weihrich, Heinz. (1984).

Management (5th edition).New York: McGraw---Hill Book

Company.

Nasir, M Saeed (1996). Banking, Currency and Finance, Sixth

edition. Faisalabad: Nafees Printing Press.

The Bank of Khyber Employees Service Rules (1998)The Bank of

Khyber, Annual Report, 2003

The Bank of Khyber, personal and Administration Department

Manual, 2000.

The Bank of Khyber, Recruitment policy 2000.

http://www.thebankofkhyber.com.pk

Noor Rehman. (1997-1999). An Internship Report on the The Bank

of Khyber. IMS, Peshawar.

Waheed Zaman (2000-2002). An Internship Report on The Bank of

Khyber.

Roger Le E Rey Miller (1985). Modern Money and Banking in

Pakistan. N.Y, McGraw---Hill Book Company.

The Bank of Khyber, Information Memorandum 1998.

Asfar H. Siddiqi, (1993) practice and Law of Banking in Pakistan.

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Education

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