IN THE NAME OF ALLAH, THE MOST MERCIFUL, THE MOST BENEFICIAL.

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THE BANK OF PUNJAB

Passion reborn…

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INTERNSHIP REPORT

ACKNOWLEDGMENT

All praises to Allah, the most beneficent, the most merciful, the most forgiving, the most

generous, the controller of the hearts and gazes and all knowing of what that is open and

what is hidden. I praise Him with the praise that is eternal throughout the Night and the Day.

It is will of Allah that my honorable teachers have guided us to get training about banking

technicalities and complete our tasks.

Consequently I have taken upon my unworthy shoulders the responsibility of preparing

Internship Report.

I feel highly indebted and grateful and consider it my duty to pay my thanks to:

ALLAH ALMIGHTY: for the guidance, strength and courage originating from Him, in

accomplishment of this job.

My respectable teachers.

Staff in branch, especially Mr. Rao Abid Mehmood Khan (Branch Manager), Mr. Asmai

Tariq Rathore (Manager Operations) in Bank of Punjab for their important role in

completion of this task.

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TABLE OF CONTENTS

Acknowledgment

Dedication

Preface

History of Banking in Pakistan

Executive Summary

Introduction to Report

Historical Background

Introduction to Branch

Mission

Vision

Core Values

Scope of the Bank

Management of Bank

Symbol of Bop

Awards & Achievements

Human Resources Actions

Organizational structure

Board of Directors

Departments at BOP

List of Products

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Work Done By Me:

1 st Week Of Internship

Account Opening

2 nd Week Of Internship

Remittance

3 rd Week Of Internship

Clearing

4 th Week Of Internship

Issuance of Cheque Book

5 th Week Of Internship

Cash Department

6 th Week Of Internship

Lockers

Utility Bills

Ratio Analysis

Swot Analysis

Recommendations

Conclusions

References

Annexure

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BANKING HISTORY IN PAKISTAN

At the time of Pakistan’s formation on 14th August 1947, there were adequate banking

services available in the forming areas. Before the formation of Pakistan, there was nearly

3500 branches in Sub Continent, out of these 3500 branches, 1500 branches were existing in

Pakistan’s territory. It was agreed, at the time of formation of Pakistan, the Reserve Bank of

India should continue its functions in Pakistan territory until September 30, 1948 as the

central bank of Pakistan. It was also agreed that Indian currency notes would use as legal

currency of Pakistan until September 30, 1948.

After the independence, the relationships between Pakistan and India were not good. Mostly

banking was in the land of Hindus and they were shifting their offices and assets to India,

which results the down fall of banking sector in Pakistan. The number of banking offices in

Pakistan reduced to 200 on June 30, 1948. Imperial bank of India who was agent of The

Reserve bank of India, has started closing down its branch network in Pakistan. For making

essential payment of Pakistan, Reserve bank of India refused to make advance money to

Pakistan which was a great trouble for economy of Pakistan. Pakistan’s share of Rs.75 billion

was also held with Reserve bank of India. At the stage of hopeless state affairs it was agreed

between two countries the Indian central would serve Pakistan as monitory authority till June

30, 1948.

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EXECUTIVE SUMMARY

The Bank of Punjab was established in 1989 under the Punjab Bank Act 1989. It is scheduled

bank governed by State Bank of Pakistan. Its head office is situated in Lahore. Presently, it

has more than 300 branches network all over the Pakistan, but it mainly concerned in Punjab

province. Bank of Punjab has equity of Pakistan Rupees 10.773 Billion as on 31 st December

2011. Its deposit based was Rs.237.897 billion with aggregate advances of Rs. 127.130

billion as on 31st December 2011. Bank secured a profit of Rs. 348 million as on 31 st

December 2011.

During my stay at Bank of Punjab, I got the opportunity to work in various departments in

Bank including operation, credits, account opening, clearing and foreign trade. In operation

department I noticed how banker's cheques are issued and paid. Similarly in clearing

department I observed that how cheques are cleared and possible reasons of unpaid of

cheques. I observed that account opening is a most crucial department in Banking. It referred

as a gate of entrance in the bank. The bank is advised to remain more vigilant by State Bank

of Pakistan while opening account in bank. The most important step is Know Your Customer

and Anti Money Laundering in account opening. In credit department, I tried to understand

all the financing products.

I find that since Bank of Punjab is considered as a government bank and its main customer

comes from public sector. I observed that customer service is not compatible with private

banks. Bank of Punjab is also for-behind in applying modern techniques of information

technology. Online system is not working properly. Software used by bank is of old nature

which was applied from 2001, it required a great deal of up-gradation.

Finally Bank of Punjab should launch reforms for the improvements for customer service and

its operational system to remain competitive in banking sector.

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HISTORICAL BACKGROUND OF BOP

The Bank of Punjab started its functions on November 15, 1989 with the inauguration of its

first branch in Lahore. The bank of Punjab was given the status of scheduled bank in 1994

and now is working as a commercial bank with almost 273 branches in Punjab. Its primary

functions are accepting the deposits of the people and lend it to the persons who are in need

of finance for their business to commence and enhance. It also deals with customer’s foreign

currency, remittance, trade, industry and agriculture sections to provide better banking

facilities to its client.

The Bank of Punjab also provide and offers attractive rates and percentages of profit on all

kinds of deposits, investment, opening of foreign currency account and handling the issues

related to foreign exchange business like import & export and remittances, financing, trade

and industry for working capital requirements.

In 1990’s the bank has provided two major services to the nation on the national scene of

appearance of Bank of Punjab as a new bank.

(i) The saving base of economy has effectively enlarged and hence the opportunities for

investment have increased.

(ii) The services of the bank in fact of severe competition have improved considerably so that

now consumer are left with extensive choice to do or undo their business relations with these

banks keeping in view quality of their services.

THE BANK OF PUNJAB

INTRODUCTION TO BRANCH

The branch where I was appointed for my internship is located at Gondlanwala Road Branch,

Gujranwala. This is a good opportunity for the branch to do business with such kind of

people there is also a great competitive environment is not easy to deal with. Because all

major banks have branches in same area.

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During my internship, the branch has large number of staff. It has more than 20 employees

ranking from branch manager to teller. Other than these officers there are 8 employees

ranging from security guard to sweeper.

The main reason of bank’s existence is to accept the deposits of people who have surplus

money and lend it to those who need it for their business.

MISSION

Our mission is to provide the services that enable people and businesses to extend themselves

so they can reach new heights, fulfill their ambitions and achieve the best that's on offer. We

are determined to be a truly customer-driven business with our customer knowledge and

perception. We are committed to providing customer satisfaction, evolving business integrity,

and forming pride in the people.

VISION

Our aim is to deliver more & contribute to the prosperity of Pakistan with the fortified pride

in who we are and the passion for innovation.

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OUR CORE VALUES

These are the values we celebrate

Our Customers:

As our first priority

Profitability:

For the prosperity of our stakeholders that allows us to constantly invest, improve and

succeed

Corporate Social Responsibility:

To enrich the Lives of community where we operate

Recognition And Reward:

For the talented and high performing employees

Excellence:

In everything we do

Integrity:

In all our dealings

Respect:

For our customers and each other

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SCOPE OF THE BANK

As bank of Punjab is a scheduled and commercial bank of Pakistan, it performs all the

functions which commercial banks do. It performs its functions in both areas of resource

mobilization, loans and investment. It is also providing the advances to business, trade,

industry, agriculture and seasonal business on soft terms to enhance the performance of these

sectors.

MANAGEMENT OF BANK

At the level of Decision-making, senior management of bank takes important decisions

regarding the human resource and all other kinds of essential decisions. Senior management

have rich experience in banking profession both domestic and internationally.

Complete responsibilities of formulation of policies regarding management have been placed

under the law and board of directors.

SYMBOL OF BOP

The sun rising over the five curvy lines represents the dawn of the new hope of progress and

prosperity for the land of five rivers and all over the Pakistan. The main purpose of the cotton

flowers and spikes of wheat in the symbol is to present the fact that the economy of Punjab

stands on its agriculture products especially cotton & wheat.

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AWARDS & ACHIEVEMENTS

Excellence Award By The Central Board Of Revenue

The Central Board of Revenue presented "Excellence Award" to the Bank of Punjab in

recognition of the contribution made by the bank towards Government exchequer.

3rd Kissan Time Awards

In recognition of Bank's contribution in development and growth of agricultural sector, the

Bank honoured with "Top Bank for Agriculture Loans" and "Best Bank Crop Insurance" under

3rd Kissan Time Awards year 2006.

Best Corporate Report Award

Annual Report of the Bank for the year 2005 won 5th position for "The Best Corporate

Report Award" for the Financial sector, adjudicated jointly by the Institute of Chartered

Accountants of Pakistan and the Institute of Cost and Management Accountants of Pakistan.

16th Bolan Excellence Award

The Bank was awarded Best Bank Award under 15th Bolan Excellence Awards distributed in

2006.

Achievement Award

The Lahore Chamber of Commerce & Industry (LCCI) awarded the Bank "LCCI Achievement

Award" 2006.

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ORGANIZATIONAL STRUCTURE

MANAGEMENT HIERARCHY

Administration Organization & Methods

Operations Information technology

Business Development Officers training institute

Credit Shares

International Law

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REGIONAL NETWORK

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DEPARTMENTS AT BOP

ACCOUNT OPENING

Account opening is the first step to establish a professional relationship between the customer

and the bank. The Bank of Punjab is offering mainly two types of accounts:

Current Deposit Account

Profit & Loss Sharing Account

The first condition for a customer, who wants to open an account with the bank of Punjab, is

introduction, which is preferably by the bank officers or any account holder of the bank. The

different categories of accounts that are available are as under.

Individual account

Joint Account

Partnership Account

Limited Company Account

Clubs, Society, Association, or Trust Account

Foreign Currency Deposit

CLEARING DEPARTMENT

Clearing is the for the most part important department of the bank performing various

functions.

Clearing House:

A clearinghouse is a group of the member banks, working under State Bank of Pakistan and

which is for the purposes of setting inter banks claims resulting from spread of funds from

one bank to another. The cheque’s/instruments of branch are credited into the account of the

customer.

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REMITTANCE DEPARTMENT

Remittance is a key function of the bank. It is the transfer of money from one place to another

place. The need for transfer of funds is usually feel in commercial life mainly and in

everyday life commonly.

By proving this service to the customers the Bank of Punjab earns a lot of income in the form

of service charges.

The Bank of Punjab deals with the following type of remittances: -

Demand Draft (DD)

Mail Transfer (MT)

Telegraphic Transfer (TT)

Pay Order

ADVANCES / CREDIT DEPARTMENT

“Major source of bank’s Income”

It is the loan function, which produces the major person of bank’s income, and as such it is

the major areas of professional banker’s concern and attention.

Principles while advancing

Basically there are five principles that must be duly observed while advancing money to

borrowers.

Safety

Liquidity

Disposal

Remuneration

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Suitability

Forms of Lending

Many there are two types of advances:

Short-term (maturity within one year)

Long term (maturity with the period of more than one year)

However they are further classified as:

Running Finance

Demand Finance

Cash Finance

Letter of Guarantee

SERVICES AND BUSINESS PROCESS

1. SERVICES PROVIDED TO THE CUSTOMERS:

Following are the services provided to the customers.

Deposits acceptance

Granting loans

Foreign exchange services transaction

Utility services

Facility of lockers

Instant fund transfer service (SPEDFAX)

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BOP gives special importance to the business that is earning fee or remuneration. As part of

diversification of the banks utility services, the collection of bills of INSTAPHONE (mobile

phone network) was added to existing collection arrangements for WAPDA, SUI GAS,

WASA, PTCL, and PAKTEL. By using bank's extensive branch network, effort have been

made to maximize the exploitation of this source in view of its rich potential of yielding

business and deposit direct earning of commission

2. DEPOSIT SECTION:

In recent, borrowing funds from different sources has become an important element of today

business enterprise rather than carried out only with the capital of the owners. Borrowed

funds of the bank are much greater than own capital and the borrowing of banks is mostly in

the form of deposits.

Deposits are lent out to different parties. The difference between the rate at which deposits

are borrowed and the rate at which these deposits are lent out to other party is the profit

margin of the bank. The more the difference of rate of borrowed deposits and the lent out

deposits, the more will be the profit margin of the bank.

The major function of all commercial banks is to collect the deposits. The purpose of

collecting these deposits is not to save them only but to accept these deposits as debts. When

deposits are accepted from customers, a relationship is established between the bank and the

customer, where as customer will be called as creditor and bank will be a debtor. When the

amount of deposit is received by the bank, he becomes its owner but the amount owned

would be paid back by the bank after a specified period.

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LIST OF PRODUCTS

No SCHEME/PRODUCT TENURE

01 BOP MUNAFA-HI-MUNAFA – III. PLS – TERM DEPOSIT

02 BOP BAI MISAAL TERM DEPOSIT PLS – TERM DEPOSIT

03 BOP PAHLAY MUNAFA DEPOSIT SCHEME PLS – TERM DEPOSIT

04 BOP SENIOR CITIZEN TERM DEPOSIT PLS – TERM DEPOSIT

05 BOP KISSAN DOST TERM DEPOSIT PLS – TERM DEPOSIT

06 CORPORATE PREMIER TERM ACCOUNT PLS – TERM DEPOSIT

07 BOP YOUNG LIONS SAVINGS ACCOUNT PLS – Running Account

08 BOP SENIOR CITIZENS SAVING ACCOUNT. PLS SB – Running Account

09 BOP GHARAYLOO SAVING ACCOUNT. PLS SB – Running Account

10 BOP ZIADA MUNAFA SAVING ACCOUNT. PLS SB – Running Account

11 BOP PLS SUPREME SAVING ACCOUNT. PLS SB – Running Account

12 BOP FCY SUPREME CURRENT & SAVING

ACCOUNT. US$, EURO & U.K. Pound

PLS FCY – Running Account

13 CORPORATE PREMIER ACCOUNT PLS– Running Account

14 BOP TIJARAT ACCOUNT. CD – Running Account

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MAIN FEATURES OF EACH PRODUCT

1) BOP MUNAFA-HI-MUNAFA – III

This is a term deposit product. The term is from 1 month to 2 years and the profit is paid on

monthly basis. The minimum amount of deposit is Rs.100, 000/-. The rate of profit is from

7.0 % p.a. to 11.35 % p.a. depending on the tenure which is higher than Bank’s normal term

deposits.

2) BOP BAI MISAAL TERM DEPOSIT

This is a term deposit product. The term is from 1 year to 2 years and the profit is paid on

maturity. The minimum amount of deposit is Rs.100, 000/-.

3) BOP PAHLAY MUNAFA DEPOSIT SCHEME:

This is a Fixed Deposit product allied with state of the art BOP modern banking facilities

with high rate of provisional profit paid in advance. The tenure will be 3, 6, 12, 15 and 18

months with free ATM/Debit Card.

4) BOP SENIOR CITIZEN TERM DEPOSIT SCHEME:

This is a Fixed Deposit product with high rate of profit paid on monthly basis with a fixed

tenor of one year only. The product is available for senior citizens of age 55 years &

above who are eligible to invest in term deposit as per Bank’s criteria.

The account can be opened singly or preferably jointly (husband & wife) provided either

of them is of 55 years or above (Retirement is not a condition of eligibility)

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5) BOP KISSAN DOST TERM DEPOSIT SCHEME:

This is a Fixed Deposit product with high rate of profit paid on maturity along with

principal amount with a fixed tenor of six months & one year.

6) Corporate Premier Term Deposit:

7) BOP Young Lions Savings Account:

The product is available for all children less than the age of 18 years to open PLS Minor

saving account (checking/running) with their Parent/Guardian as per our Bank’s criteria.

The account will be opened with Parent/Guardian i.e. Child (M)/Guardian (G).

The product carries all characteristics/conditions/rules pertaining to PLS SB account

except profit will be calculated on daily product basis and payment of profit shall be paid

on monthly basis.

WHO CAN INVEST

Children (less than the age of 18 years) would be eligible to open a Minor Bank Account

with their Parent/Guardian. This is a Saving Account product with a slightly better profit

rate with other value added benefits. The rules of operations will apply as specified in

BOP Instructions Circular No. 93/68 dated Dec 16, 1993.

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AMOUNT OF DEPOSIT

Minimum deposit to open account as per bank policy for PLS saving accounts.

No Maximum deposit limit

PROFIT RATES/CALCULATION/DISBURSEMENT OF PROFIT

The BOP Young Lion Saving Account is a profit bearing account. The present

applicable profit rate is 6 % per annum on all the balances without any lower or upper

limit.

VALUE ADDITIONS

Free issuance of first ATM Card. However for renewal, charges will be applicable as

per bank’s schedule of charges.

Free first 25 leaves cheque book will be issued at the time of account opening. This

will be one time facility.

Free access will be allowed to view account statements through BOP e-Banking

facility.

On opening of the A/C with Rs.50,000/- and maintaining it for 30 days at least, a free

Gift will be given to the Young Lion as a token of becoming BOP Customer at the

discretion of the management.

No Account maintaining charges

8) BOP SENIOR CITIZENS SAVING ACCOUNT

This is a saving bank product available for all senior citizens i.e. persons of 60 years and

above who are eligible to open a saving account as per our Bank’s criteria.

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9) BOP GHARAYLOO SAVING ACCOUNT

This is a saving bank product available for all females who are eligible to open a saving

account as per our Bank’s criteria. The account can be opened singly or jointly with

husband. This product is designed to attract procure deposit/savings of ladies particularly

housewives of expatriates & students.

10) BOP ZIADA MUNAFA SAVING ACCOUNT

This is a saving bank product available for general public i.e. persons who are eligible to

open a saving account as per our Bank’s criteria. The account can be opened singly or

jointly. This product is designed to attract procure deposit/savings of general public

particularly salaried and small investors.

11) BOP PLS SUPREME SAVING ACCOUNT

This is a saving account product available for all customers who are eligible to open a PLS SB

account as per our Bank’s criteria.

14) BOP TIJARAT ACCOUNT

This is a current account product available for all customers who are eligible to open a

current account as per our Bank’s criteria.

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1 st Week of Internship

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Types of Accounts:

Basically there are two types of accounts

Term/Fixed Deposit Account

Demand Deposit Account

1-OPENING AN ACCOUNT

The first requirement for opening an account is to fill the account opening form. First of all

the customer will state the address of branch where he is going to open his account. Then he

will state the title of account in which he will state his name. Then he will have to select that

which account he is going to open whether he is going to open.

o Individual account

o Joint, sole proprietorship

o Public Ltd.

o Private Ltd account

o Partnership

o Trust account

o Society/ club/ association

o Others

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Then he will state his type of account which he is going to open

Saving, current

Term deposit

Foreign currency account

Then he will state the suffix that is the number of the PKR currency.

AOF includes such clauses as,

Name, father name, mother’s maiden name, marital status, date of birth, Gender, NTN No

that is optional, occupation, name of employer, job title, address of employer, country of

residence,, nationality, CNIC No, current residential address, permanent address, Email Id,

Fax No, Tel No, Mobile No etc.

Specimen Signature Card

Customer is required to fill two specimen signature cards. Each specimen signature card has

four blocks. Customer will give his signatures two times on each card..

II-TYPES OF ACCOUNT

Individual account

Salaried person account:

Branches may be required to open accounts for employees of their corporate

customers as employees of other organizations maintaining account relationships with

BOP. In each cases, branches shall make reasonable efforts to confirm the

employment details of an applicant. Single account is an account that is operated by a

single person. To open an account following types of documents are required.

o CNIC

o Salary Slip

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Student Account

This is the account being operated by the student. Documents required are

o Fresh copy of latest ID Card of institute or letter from an institute

Minor Account

This is the account operated by the person of age less than 18 years. This account

remains active till the person is minor. When he reaches the age of maturity, his

account will automatically be terminated.

Retired person account

He must have

o CNIC

o Proof of retirement

Joint accounts

These are the accounts of two or more parties who are not partners, executors,

administrator’s and trustees. Common joint account is husband and wife joint

account. Parties must clearly mention the signing authority to operate the account.

Sole proprietorship account

This is the account of a businessman who is the only and the single owner of the

business. Account holder is solely responsible for profit and losses.

Documents required for this account are:

o CNIC of sole proprietor

o Sole proprietors declaration on personal capacity

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Partnership account

It is the type of business in which many persons jointly invest in business and share

the profits and losses in pre described proportionate. The documents required for that

are, partnership deed containing information

o Name of all partners

o Partner’s power to instruct bank on financial matters & operation of bank

accounts.

o Dissolution of partnership

o Death of a partner

o AOF signed by all partners

o Authority letter in favor of person to operate the account

o SSC signed by all partner’s

o CNIC of all partner’s

o Attested copy of registration from registrar of firm

Company’s account

AOF must be completed and supported by certified copies of delegating board

resolution together with any other documents like powers of attorney authorizing that

he has specified powers. Company may be public limited or it may be private limited.

The documents required for them are:

o CNIC of all the director’s or signatories other than director’s of company

o List of all director’s

o Certificate of incorporation

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o Certificate of commencement of business

o Copy of MOA & AOA

o Board resolution for the type of account and the person authorized to operate

the account of company

Society/ club/ association

Various professional’s bodies and societies are incorporated as companies, and may

not necessarily include the word “limited” in the company name.

The unincorporated clubs & societies which are not legal entities should at least be

registered with appropriate authorities.

The resolution passed by club committee must include authorization to establish bank

account and specify the signing power on the accounts.

These are the institutions for the social welfare of general public. Documents required

for them are:

o AOF

o Signature of all authorized signatories

o Signature of all authorized signatories on SSC

o Resolution by a government body to authorize any person to open an account

specifying the powers of authorized person

o An undertaking signed by authorized person to inform the bank in case of

change taking place in the person authorized to operate the account

Trusts account

o AOF

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o Signature of all authorized signatories on SSC

o Authorized copy of registered trust deed

o Resolution to authorize a person to operate the account

o List of trustees

o CNIC of all trustees

Agent account

He is a person doing his business out of city and he nominates a certain person to

operate his business locally then that person is called an agent. The agent can be

authorized by the principal to open an account in his own name to deal and manage

the matters of the principal. This account can be opened by obtaining the “powers of

Attorney” from principal. Principal has the right to cease this agent account whenever

he realizes that the agent is not managing the matters fairly. Following documents are

required to open this account

o Certified copy of powers of Attorney

o CNIC of agent

Government account

These are the accounts for any official authority like Finance Minister. Any

government school, Government hospital or any officer of Federal, Provincial or

Local Government.

Documents required for this account are:

CNIC of minister or any other official

Request of AO from Chief Secretary or secretary

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Gazette copy Attested by chief Secretary/secretary

2nd Week of Internship

31

REMITTANCES

Types of Customer’s Cheque’s:

Bearer Cheque’s

Bearer cheques are the cheques that can be withdrawn by any party. The account

holder can withdraw the amount or he may refer any person for payment can be made

to the bearer of cheques. Bank requires the CNIC of bearer and bearer has to sign on

the back of cheques while presenting the cheques with his CNIC. Then cashier while

giving payment again request the bearer to sign again on the back of the cheques to

verify the signature of the bearer. This type of cheque can be presented on the counter

for payment and is called open cheque.

Order Cheque’s

Order cheque is the type of open cheque that can be presented on the counter for

payment but in this type the payee is nominated or mentioned the word “OR Bearer”

is cancelled to eliminate its effect.

Cross Cheque

It is the type of cheque that cannot be presented on the counter for cash payment but

cheques can be transferred the balance from the account holder to the bearer or

specified person. Person has to fill up the “Pay in slip” only. Both the bearer and order

cheques can be crossed.

Types of Cross Cheques:

There are two types of cross cheques

o Simple crossing

o Special crossing

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o Simple crossing

This is the type of crossing which is crossed on the face of the cheque and

state.

It means that amount can be transferred from the account of account holder in

the account.

o if we cross the cheque from the front and write:

Then still it will be the category of Simple Crossing.

o If we cross the cheque on the front side and write the words “& co

Then it means that Mr.A must have the company.

Special Crossing

It is the type of crossing in which the payee is strictly restricted for payment is called

Special Crossing.

This cheque is crossed on the front side ant the word “Account Payee Only” is written

Then it means that the amount can be transferred in the account of Mr.Ahmad even if

the words or bearer is not cancelled.

It means that cheque can be paid to the specified person’s specified account. It can be

paid to any bearer even if the word “Or Bearer” has not been cancelled.

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3 rd week of Internship

34

CLEARING

Clearing means to clear the cheque by making and receiving payments. This is the case in

which different banks clear the cheques drawn upon each other. There are different types of

clearing:

o Outward clearing

o Inward clearing

o Intercity clearing

o Local clearing

o Online clearing

o Outward clearing

It is basically the clearing of the cheques deposited in our customer’s accounts that

customer’s of other banks have given to account holders of BOP.

Example: if person A has account in bank Alfalah and he has to pay Mr. B who has

account in BOP. Mr. A gives cheque of alfalah to Mr.B. Mr. B will deposit this cheque at

BOP. BOP puts three stamps on this cheque.

o Crossing stamp

o Payee’s account will be credited stamp

o Clearing stamp of the next day means they will be cleared on n next day

o BOP will credit the customer’s account.

At the same time Alfalah bank will pass entry:

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Mr. A Account (DR) -------

State bank of Account (CR) ------

After receiving such an entry BOP will pass this entry:

State bank account (DR) ----------

Head office account (CR) ---------

Another entry will be:

Head office account (DR) ----------

B’s account (CR) ----------

o Inward Clearing

it refers to the clearing of all the cheques drawn upon our bank, in which customer’s

make payments to the account holder’s of other banks and the same procedure is

repeated as stated in the example of outward clearing.

Following types of stamps will be required:

o Verification stamp

o Posted stamp

Mr. B’s account (DR) -------

State bank account (CR) -------

Against it other bank whose customer’s account is going to be credited will pass following

entry:

State bank account (DR) --------

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Head office account (CR) ----------

Another entry will be :

Head office account (DR) ----------

A’s account (CR) ---------

oLocal Clearing

State bank has specified the region for local clearance. The area which lies under clearing

is from Kamonki to Gujrat. It includes many cities and towns like Gakkhar, wazirabad,

Daska etc.

o Intercity Clearing

This clearing is among the cities from Lahore to Jhelum is called intercity clearing. It

takes days for clearing unlike local clearing that takes one day for clearing.

oSame Day Clearing

This is the clearing for the cheques of more than Rs: 5,00,000. In this type of clearing the

bank usually accepts the cheques for outward clearing upto10’O clock. The bank informs

NIFT about this special type of clearing called same day clearing. NIFT has special

clearing boys for the same day clearing. These boys pass the cheques from other banks on

the same day and NIFT credits BOP on the same day. BOP gives the credit to the account

on the customer on the same day. Unlike other types of clearings BOP charges fee Rs:

200 to 300 for the same day.

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4 th Week of Internship

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I-ISSUANCCE OF CHEQUE BOOK

We request for the issuance of cheque book from the customer in person or through

customer’s representatives. For new accounts cheque book requests are to be obtained for.

Record date on requisition slip.

Verify the customer’s signature and sign as evidence on CRS.

Check and ensure that there is no restriction on account that prevents the issuance of

cheque book.

Supervision of system

o Verify the details from the original source and the system

o Supervise the details on the system

o Keep the requisition slip on the pending folder up to the delivery of cheque book

to the customer by BSS (banking services supervisor)

Receive cheque book

o Receive cheque book along with the “cheque serial range report” from CBPC in

sealed envelop

o Count each and every leaf of the cheque book and insure that none is missing and

the serial number is in order

o Verify the details from the cheque range report with the cheque requisition. Any

discrepancy must be immediately reported to CBPC with the copy to head of

centralized operations

o Cheque range report with the requisition slip will be filed at branch end in order

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o Copy of cheque range will also be used as cheque book delivery register

Recovery of cheque book charges

Upon the receipt of cheque book from CBPC, BOP processes the transaction to cover

the cheque book charges from the customer, copy of cheque range report will also be

used as source document for recovery of charges.

Cheque book report

Cheque range report will be filed in date order and this report will be used in place

of cheque book acknowledgement/ delivery register.

Delivery of cheque book to customer

o Customer signature must be verified on acknowledgement slip and on range report

against customer detail before delivery of cheque book

o Deliver the cheque book to customer after obtaining their signatures on cheque

book record as acknowledgement of receipt

o Update cheque boom delivery record i.e date of delivery to the customers.

o Officer delivery the cheque books sign as evidence of delivery

Recovery of cheque book to the representative

Receive request letter signed by the customer with the details of representatives like

name CNIC number or specimen signature duly attested by the customer to deliver

the cheque book

o Verify the customer signature on request

o Verify the CNIC details/ signature of representative

o Obtain signature on the delivery record (range report) against relevant

customer’s record

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o Verify signature from the signature on authority letter

o Attach authority letter with cheque range report and file in date order at branch

end

o Deliver cheque book

o Officer delivering the cheque book will sign as evidence of delivery

Update the system

On receipt of acknowledgement slip input the serial number of cheque book in account on

the system and initials it.

Supervision

o Supervise the serial number of cheque book on the system and initial as supervisor

on source and file

o Cheque book range report along with requisition will be filed in date order at

branch end

Importance of Loose cheque

Request CBPC for issuance of loose cheque book

Cheque book will be prepared without account/ cheque series number and

dispatch to the respective branch by recording the details of cheque leaves in stock

register

ATM Issuance

o ATM cards will be issued to saving ,current and other specific products accounts

o ATM cards should only be linked to the account types/products like savings,

current, khazana, Azadi accounts.

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o ATM cards can also be issued to the joint account holders having either survivor

condition.

o ATM cards can also be issued to the accounts held by sole Proprietors by giving

the owners name as card title.

o ATM cards can only be issued to the Pak Rupee accounts.

ATM Cards cannot be issued in following cases

o Any non personal account (companies, organization)

o Dormant, inoperative, blocked, restricted accounts

o Partnership accounts

o FCY accounts

o Non residence accounts

o Jointly operated accounts

o Mandate holders

II-STANDING INSTRUCTIONS

Bank also acts as an agent on behalf of the customer and provides various

services.

Instructions containing full details will be received in writing on the bank standard

format annexure SI.

Standing instructions handled by the bank will be subject to the charges if any,

prescribed in the schedule of charges.

Bank shall maintain the record of standing instructions received.

The customer’s signature should be duly verified from the signature of AOF.

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Standing instructions must be maintained in SI diary showing complete record.

Improper handling of standing instructions can adversely affect the banks

reputation.

For al manual SI following card format is used and details are recorded in it.

Procedure

Received application for standing instructions

Report the date of receipt

Verify customer signature and sign as evidence

Setup SI in standard bank application

For manual management branch will maintain SI card

On due date execution are recorded on SI card

If branches are unable to execute the SI they should specify the reason like

Insufficient balance in the account and bank is not liable to execute SI on the next

day when there is sufficient balance in the account

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5 th Week of Internship

44

CASH DEPARTMENT

A- Cash Deposits:

At the start of the day, all counter service officer stamps reflect the current date.

Receive cash from customer along with deposit slip.

Check following things to ensure:

o Deposits slip date.

o Amount in words and figure matches on deposit slip.

o No unauthorized alternation is allowed on deposit slip.

Account details on deposit slip must match with the account detail on application

form in bank.

In case of any discrepancy:

Advice the customer to rectify the error.

Authenticate the correction made by the customer.

B- Cash Withdrawal

At the start of the day, all counter service officer stamps reflect the current date but

the clearing stamp should reflect next working day.

Receive cheque from customer along with deposit slip.

Check following things to ensure:

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Cheque is not stale; post dated or has incomplete date.

Cheque is not mutilated.

Amount in words and figure matches on both cheque & deposit slip.

Match account details on cheque with application.

Verify customer’s signature on cheque and put initial on it.

Check availability of balance in account.

C – For Account Transfer

I. Affix “Transfer” stamp on cheque and deposit slip and put initial.

II. Handover duplicate deposit slip to the customer.

III. Cash Requisition at Main Branch:

Send request letter or email for cash requisition to main branch.

Receive request cash in sealed bags from security agency guard.

Confirm that seal is intact and number of seal I same as appeared in receipt.

Break the seal in the presence of another person officer.

Count packets and verify the notes are either “Fresh currency” or Good quality re-

issuable notes.

Acknowledge receipt of cash by jointly signing the receipt.

Handover acknowledge receipt to security guard. One copy of acknowledgement

receipt remains with us.

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Pass entry in banking application as:

Cash Account (Dr) xxx

Branch Account (Cr) xxx

Email letter to the main branch.

D- Cash Surrender To Main Branch:

Prepare letter/email addressed to main branch conforming amount to be surrendered

by branch.

Fax/email the letter to the main branch and request security guard for cash pickups.

Arrange cash which is to be surrendered to main branch. Make sure that all necessary

branch stamps on the face and the back of packet are affixed and put initial with date

on wrapper.

Receive security agency guard verify identity and prepare receipt with details for the

amount surrendered to main branch is signed jointly.

Count the bundles and put the same in the bag.

‘SEAL’ the bag in the presence of Security Agency Guard.

Hand over the sealed bag along with the signed shipment receipt to the security

agency guard and get acknowledgment of cash receipt from security agency guards.

Pass entries in banking application

Branch account (Dr) xxx

Cash Account (Cr) xxx

SUPPLY OF FRESH CASH TO BRANCHES

Receive request letter/ email for cash supply from branches.

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Fax/ email letter to main branch and request Security guard for cash pickups.

Arrange cash which is to be surrendered to main branch. Make sure that all necessary

branch stamps on the face and the back of packet are affixed and put initial with date

on wrapper.

Receive security agency guard verify identity and prepare receipt with details for the

amount surrendered to main branch is signed jointly.

Count the bundles and put the same in the bag.

‘SEAL’ the bag in the presence of Security Agency Guard.

Hand over the sealed bag along with the signed shipment receipt to the security

agency guard and get acknowledgment of cash receipt from security agency guards.

Pass entries in banking application

Supervise transaction in banking application.

Hand over the sealed bag to the Security Agency Guard.

Obtain security guard acknowledgement for cash delivered and verify security guard

signature.

CASH TAKE OVER TO STATE BANK OF PAKISTAN

Bank of Punjab passes the entry in banking application and prepares requisition for issuance

of SBP cheque.

Cash xxx

Head office xxx

Then processors jointly with supervisor prepare and sign the SBP requisition form.

Bank of Punjab collects cheque from treasury Bank Office.

BOP arranges security agency guard to receive cash from SBP.

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At SBP:

Security agency guard presents the cheque at SBP, complete all formalities and

receive cash.

SAG receives and count the bundle received from SBP’s representatives.

Then he ensures that cash received from SBP is as per the cheques of SBP.

SBP representative prepare receipt, put cash in bag and seal the bag in presence of

Security Agency guard.

SBP representative handovers the bag to Security Agency guard after verification of

ID card and signature and obtain the acknowledgement for cash delivered.

BOP received requested cash in sealed bag from Security Agency guard.

SBP staff confirms that the seal is intact and the number of seal is as per the receipt of

cash.

Then he breaks the seal in presence of Security Agency guard to make sure that total

cash received from SBP as per the amount of cheque.

CASH SURRENDER TO STATE BANK OF PAKISTAN

Segregate the surplus cash mostly consist of soiled; defective, damaged, cut notes are

surrendered to SBP.

BOP prepares the deposit slip for the amount to be deposited.

Then arrange the security agency guard and verifies them by ID card and the

signature.

Then counts the bundle/ packets and prepare receipt, seal the bag in presence of

Security Agency guard.

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Then handovers the bag to Security Agency guard after verification of ID card and

signature and obtain the acknowledgement for cash delivered.

Then passes the entry in banking application.

Then supervise the entry in banking application.

At SBP:

Received cash in sealed bag from Security Agency guard.

Then confirms that the seal is unbroken and the number of seal is as per the receipt.

Then he breaks the seal in presence of Security Agency guard.

Then counts the bundle and acknowledges the receipt of cash by signing the receipt.

Then handovers the acknowledged receipt to Security Agency guard.

Then make sure that total cash received is as per the amount to be deposited.

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6 th Week of Internship

51

LOCKERS

Rental of Lockers:

BOP advices customer about the locker availability i.e size and charges of

different lockers.

Branch service officer gets locker form properly completed.

BSO explains the rules and regulations governing the lease of lockers.

He checks the documents if not in order, advice the customer and seeks the

clarification.

If the documents are in order, then he approves the agreement and rental of locker.

He assigns the locker number and enters details in locker register.

Then posts the entry in banking application for locker rental charges.

Recover the sealed envelope of keys of lockers rented and hand over it to the

customer along with the rules and regulations governing the operations of locker.

Then obtains the acknowledgement from the customer that he has received the

keys.

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Then accompanies the customer to locker the test keys and records in locker

operation register.

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Collection of Rentals:

For the collection of rentals, debit the customer’s account at time of allotment of

locker and on the exact due date.

Prepare the reminder of rental payment to the customer in case overdue 30 days, and

place notice on locker as “Rent Due”.

If the authority has been given to debit the account of customer, then he supervises the

transaction in banking application.

After 6 months from the date of expiring rentals the customer will be advised by

certified courier that locker will be cut open.

If still the reply is not received within three months, the approval from the head office

will be sought to cut off the locker for recovery and it will be advertised in news

paper.

Locker will be cut open in the presence of at least 2 officers; one of them must be

Branch Manager.

The content and copy of inventory will be retained to Head Office and Compliance.

Any valuable found in the area after the customer left the bank that will be handed

over to the Branch Manager to keep in safe custody for safe delivery to owner/

customer.

In case the customer wants to appoint the other person as a operator of locker on his

behalf then he will have to the authority letter to that person along with the copy of

CNIC of that person.

Partnership concerns and joint stock companies will have to specify the person to

have locker and to handle the operations of the lockers.

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UTILITY BILLS

This is in reference to SBP circular 03, whereby all branches of the banks are directed

to collect the utility bills of the customer for the following companies:

o PTCL

o WAPDA

o SNGPL

o EDUCATIONAL INSTITUTES

To provide this service BOP has developed software through which the utility bills

are paid.

System provides the UB collections of all companies and will and will auto adjust

cash in hand account and utility company collection account.

Branches are needed to transfer funds for the main accounts of utility companies and

zero the account on daily basis.

SERVICES:

Branches must ensure that:

All branches of the bank will provide bill collection service over its counter during

normal counter hours.

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The collection branches of the bank will strictly follow the instruction of head office

and utility company, issued from time to time regarding Bill collection.

Branches must display a notice on notice board or main door showing that all UB are

accepted here during banking hours.

Branches must ensure that adequate counters are available for UB consumers to avoid

long ques.

Separate drop box should be available for Bill collection.

COLLECTION OF UTILITY BILLS:

Branches are authorized to collect cash or cheque, pay order, demand draft as a mode

of payment for UB.

Outstation cheques are not entertained.

On receipt of UB for the payment at the bank counter teller will receive the cash

payment. Post transaction in UB software. Stamp both consumer’s upper part and

bank’s lower part, the copies cash received stamp indicating:

o Amount

o Date of payment

o Name of branch

o Signature of receiving officer.

In case of cheque drawn on BOP immediately posted through UB system and on

clearness the bill stamped as “cheque received utility bills stamp”

In case of other bank cheque, pay order, demand draft, branches will affix the stamp

“provincial subject to realization of cheque” on the bills and bank’s copy.

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Cheques will be processed under normal clearing in transit/ wash amount and no entry

will be passed in UBS.

Next day, on the realization transit account will be debited and cash in hand account

will be credited manually. Immediately the teller will post that bill in UBS.

The clearing cheques will be reported after realization in a scroll on realization date.

If cheque is bounced, same will be handled as per normal clearing return procedure.

In case of domestic/ commercial bill where payment is made by consumer after due

date total amount of bill including late payment surcharge mentioned against total

amount due after due date shall be received by bank.

In case of industrial bills bank will ensure that no payment is accepted after due date

given on the bill.

Dispatch of collection schedule:

At the close of business every day, scroll of utility bills collection received will be granted

from utility bills system, the format of which is as follows:

Scroll format

o Bank name (Bank of Punjab)

o Branch name & code (Trust plaza 006)

o Date

o Utility company (e.g. WAPDA, PTCL)

S. no. Bill/ customer Bill Amount Bop reference

no.Remarks (if any)

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One day of scroll and remains along with online advice should be sealed in envelope and

marked to:

Utility company service provider

(Address of utility company)

At its own expenses utility company service provider’s courier will pickup sealed envelops

on the day following the collection by the branch. If not branch will send the sealed envelope

to the local address of utility company through courier/ by hand.

A copy of scroll acknowledgement by service provider courier must be retained by branch

from its record.

BOP collection should be reported, as nil position.

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MONTHLY REPORTING

Bank statement:

Collection branch will provide monthly statement of Collection Account to Regional

Accountant/ Utility Company nominated office of concerned regional office as per

arrangement.

Nil balance certificates:

All collection branches will provide nil balance certificates for collection amount at the close

of month to Utility Company Local Office address.

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RATIO ANALYSIS

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1-LIQUIDITY RATIO

“Liquidity ratios measure the ability of the unit to meet its short term obligations.”

Name of ratios Result for 2011 Result for 2012 Favorable/ unfavorable

Current ratio 94% 96% Unfavorable

Absolute current ratio 49% 46% Unfavorable

A- CURRENT RATIO

Current ratio is also known as working capital ratio. It is unfavorable for BOP because there

are not sufficient assets available to meet the current liabilities according to the rule thumb

for current ratio i.e. 2:1. It shows the poor management of utilization of resources.

B- ABSOLUTE LIQUID RATIO

Absolute liquid ratio relates to the cash, bank, and, marketable securities available to meet the

current liabilities. This ratio is also unfavorable for BOP. As it says, that minimum 50% of

these current assets should be there to meet the short term liabilities. Absolute liquid ratio

lays down very strict and exacting standard of liquidity therefore; acceptable norm of this

ratio is 50%.

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II- PROFITABILITY RATIO

Name of ratios Result for 2011 Result for 2012 Favorable/ unfavorable

Return on Equity 3.23% 3.20% Unfavorable

Return on asset 0.53% 0.50% Unfavorable

Return on operating fixed asset

47% 10% Unfavorable

“It shows the overall effectiveness of management to utilize its resources to generate

profit.”

RETURN ON EQUITY

Return on equity for BOP is unfavorable because of loss in previous year. Moreover, equity

of BOP is increasing in current year. This is the reason of its decrease.

A- RETURN ON ASSET

Return on asset has decreased for BOP which is unfavorable. With the increase in assets of

the bank, the relevant profit should also be increased but it did not so. Instead of profit there

was loss and that is the reason for decrease in return on asset.

B- RETURN ON OPERATING FIXED ASSET

Return on operating fixed assets has also been decreased because there is loss in year 2011.

On the other hand, there should be relevant increase in profit with the increase in operating

fixed asset. Only increase in asset is not enough. It shows the poor management of utilization

of resources to generate profit.

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III- SOLVENCY RATIO

“Its sows the long-term debt paying ability.”

Name of ratios Result of 2011 Result of 2012 Favorable/

unfavorable

Debt ratio 0.96 times 0.95 times Favorable

Equity ratio 0.04 times 0.05 times Favorable

Debt to equity ratio 25.11 times 25.06 times Favorable

Fixed asset ratio 7.10 times 5.75 times Unfavorable

Debt ratio

Debt ratio tells about the assets invested by the outsiders. So, decrease in this ratio is

favorable which shows the amount contributed by the outsiders is being decreased, which

is a positive trend as it decreases the institute’s degree of indebtedness.

A- Equity ratio

Equity ratio for BOP is increasing. This is favorable for shareholders as equity increases,

their share of profit and dividend also increases. This ratio provides a cushion against

using debt and leverage.

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B- Debt to equity

Debt to equity ratio is being decreased which shows the positive trend for BOP. As

increase in debt is less than the increase in equity. The higher ratio gives satisfaction to

shareholder but reduce the satisfaction of investors.

C- Fixed asset ratio

This ratio established the relationship between the long term funds and fixed assets. Its shows

the negative trend because the net fixed asset are not enough available to meet long term

obligations.

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SWOT ANALYSIS

65

SWOT analysis is a short form for strengths, weakness, opportunities, and threats.

It is an analysis of internal strengths and weakness of an organization as well as external

opportunities and threats. SWOT analysis affects the organizational performance. The overall

evaluation of a company strengths, weakness, opportunities and threats is called SWOT

analysis. An organization's mission is accomplished by best strategies in SWOT analysis by:

Taking advantage of organizations opportunities and strengths.

Reducing effect of threats.

By avoiding the weaknesses.

Organizations missions are used as a context and SWOT analysis is one of the most

important steps in formulating strategy; managers avoid weaknesses and assess internal

strengths.

STRENGTH:

BOP bank officers are considered as the most able professionals in the banking world.

In my observation BOP officers interact with the customers as they are their personal

friends and used to solve their problems as their own.

The customer's perception for BOP is very high due to compassionate and

personalized services of the officers. Customers feel secure while dealing with BOP

and they also have trust.

The branches of BOP are opened in commercial areas in order to save customers from

facing problems to reach the bank.

The security system is very good in BOP.

Employees are given with good facilities.

Internal computer system in BOP is very reliable and easy to use. Every information

is computerized.

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There is properly maintained data.

BOP is 51% owned by Punjab government. BOP has an asset base of Rs. 165 billion

and total deposits of Rs. 138 billion.

The management prepares a financial statement which shows the state of affairs, cash

flows, the result of operations of state of affairs, & equity changes.

BOP follows the timelines specified by SBP for implementation of recommendations

of Basel-II committee for risk management and management.

BOP is adopting measures to monitor and minimize risks that are related to banking

industry.

WEAKNESS:

There is lack of proper internal control in BOP which is pointed by the auditor in his

review.

BOP has number of products and services more than commercial banks but any

advertisement on electronic media is not given.

During my internship, I observed that employees have a lot of burden of work. The

work should be distributed equally between the employees on the basis of their

capabilities and their post

Selection of employees should be biased.

There is a lot of concern of SBP on the bank's control that is the weakness of BOP.

Due to more influence of the government there is negative behavior of the staff with

the customer.

Staff is not too much motivated due to no proper rewards or less remuneration.

There is no time management principle for customer care.

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There is lack of proper internal control.

BOP has negative profitability every year as its director and presidents played trick

with the bank by involving themselves in a fraud of billion of rupees.

OPPORTUNITIES:

There can be a great increase in deposits of BOP by commencement of new schemes.

There should be emphasis on e-banking.

BOP should adopt the diversification, innovation and mission driven approach which

are keys to success.

A number of financial schemes like special deposit accounts that have unique features

are introduced by BOP. In past few years, deposits of BOP have been increased by

40%.

Information technology is the future of this dynamic world. So BOP should

emphasize on it. Like other foreign banks, bank can design universal account to

enhance online facilities.

BOP is satisfying customer needs. A number of products are introduced by BOP

especially in retail banking and customers are becoming more loyal to the bank. And

due to optimum prices and brand products, customers feel secure and convenient.

THREATS:

Credit crisis have an adverse affect on BOP.

BOP is facing a strong competition by other banks as business is growing at very

high speed.

Customers are lacking trust in BOP due to which deposit growt

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MARKETING ANALYSIS:

BOP has lack of promotional activities due to which marketing department is very weak.

But recently print media advertising is started which will increase customer base and helps in

developing BOP's reliability.

BOP MARKETING MIX:

1. Product:

Products involved are Finance, customers, & agriculture.

2. Price:

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Due to economic crisis price charged is high and the lending rate ranges from 18-19%.

The whole banking system is under the influence of price factor. So it is very important.

3. Promotion:

BOP is cutting down its cost by cutting off its advertising expenditures.

4. Place:

BOP does not involve middleman and sellers as it is selling its services and products

through its branches that are spread across the country.

MARKETS SERVED:

The following markets are served by the bank of Punjab.

Agriculture market:

Corporate customers.

Commercial customers that involves middle & low income group.

Household customers that involves low & middle income group.

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RECOMMENDATIONS

Following are the recommendations that may be prove successful to the bank by studying the

organization and during internship.

The main intention should be consciousness in the general public and should launch a

well planned advertising campaign to capture a considerable share in the banking

sector of the country.

The bank should have physical facilities like furniture, parking facilities for their

clients as these facilities play an important role in enhancing image of the bank.

BOP can attract intelligent and capable persons and professionals by making the

salaries and pays of officers compatible to other private banks.

Expenses should be minimized by BOP.

Hardworking employees who give extra-ordinary performance in their work should be

given special awards.

BOP should do innovations and launch new products by keeping in mind that what

people want to have and what the banks are providing actually.

There should be more concentration on advances rather than on investments.

Such services and products should be launched by BOP in which there is no need for

the customers to come to the bank like telephone banking.

Those banks are successful only which provides standard, accurate and fastest

services for the product and loan delivery to the customers. So BOP should use latest

and advance technology like fax and computerization.

Authority should be given to management.

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MIS of BOP should be improved for delivery of information at time through a

network by connecting branches & regional offices to the head office.

Loans should be given on merit and management of BOP should avoid all political

pressures.

At the time of staffing and selection of employees, BOP should prefer the candidates

with professional qualifications like C.A, MBA, and ACMA.

While recruiting employees, interviews should be taken to check personality,

communication skills, and how much he is social.

TH bank should make all possible efforts to save the bank from interruption of

provincial government.

In order to convey the messages of employees to the authority, there should be union

of employees.

BOP should provide facilities to the research scholars and make a policy to provide

accommodation to them who want to study the banking issues.

CONCLUSION

BOP is contributing more in the industrial progress and capital formation in the whole

country. As shown in financial analysis, it is revealed from the data that bank is sharing major

banking business of the country which is concerned with bank's financial performance.

In addition, the schemes and policies are of great importance for the bank which helps in

trading & non trading growth.

Trade is facilitated by BOP both inside and outside of the country. BOP is constantly

showing incredible growth in all areas of the country and is remain on the front position of

modern financial institutions. However its growth of profit is reduced due to stress on

consolidation and controlled providing of loans. BOP has uniform policies and going on

efficiently. The employees are awarded with compensation and other possible facilities for

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their hard work and best efficiency. In all activities, BOP adopts merit policy. Administration

planned to avoid all issues, drawbacks and problems by comparing it with other banks. BOP

has proper and progressive management policies.

The devoted, motivated & passionate employees will soon bring the time when the bank will

touch the peak of success, progress & development.

REFERENCES

Websites

www.google.com.pk

www.answer.com

www.bop.com.pk

Books consulted:

Principle of managerial finance

Financial management by Gitman

Brochures and pamphlets provided by bank

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ANNEXURES

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