Assignment

Arooj Fatima M14BBA069

Iram Shahzadi M14BBA065

Misha Rehman M14BBA059

Submitted By :

Submitted to : Prof. Riaz Ahmed Mian

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Dedicated to

LATE Prof. Dr. Khawaja Amjad Saeed

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ACKNOWLEDGEMENT

Every project big or small is successful largely due to the effort of a number of wonderful people who have always given their valuable advice or lent a helping hand. We sincerely appreciate the inspiration; support and guidance of all those people who have been instrumental in making this project complete.

At this juncture we feel deeply honored in expressing our sincere thanks to our former principal Mr. Khawaja Amjad Saeed who have been inspiration for us and great teacher Prof. Riaz Ahmed Mian for making the resources available at right time and providing valuable insights leading to the successful completion of our project.

We are the student of Hailey College of Banking and Finance, we are extremely grateful to Zarai Taraqiati Bank for the confidence bestowed in us and entrusting our project report.

Last but not the least we place a deep sense of gratitude to our family members and our friends who have been constant source of inspiration during the preparation of this project work.

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Contents

1. Introduction

History

Reasons to change ADBP to ZTBL

Mission

Vision

Objectives

Head office

Branches

Board of Directors

2. Infrastructure of ZTBL

(i) Board of Committees

Audit Committee

Human Resource Management (HRM) Committee

Risk Management Committee

Information Technology (IT) Committee

(ii) Management Committee

Assets Liabilities Management Committee

Executive Coordination Committee

Organizational Structure

Shareholding

ZTBL staff college

Vision

Mission

Functions

Approaches of Training

Subsidiary (KSSL)

Audit Department

(i) Pre Audit

(ii) Post Audit

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Contents

3. Products & Services of ZTBL

(i) Treasury

Scope and objectives of treasury

Investments as per investment policy

(ii) Deposit schemes

(iii) Loan schemes

Types of loans

Production scheme

Supervised agriculture scheme

Zarkhaiz (one window scheme)

Sada Bahar scheme

Tea financing scheme

Crop Maximization project

Development loan scheme

Types of security

Payments period

Recovery procedure

Other schemes

(iv) Hajj Scheme

(v) Locker Facility

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Contents

4. Analysis

(A) SWOT analysis

Strengths

Weaknesses

Opportunities

Threats

(B) PEST analysis

Political

Economic

Social

Technological

(C) Financial analysis

5. Annual Report

6. Findings and Recommendations

7. Conclusion

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1. Introduction:

The Zarai Taraqiati Bank Limited (ZTBL) (formerly known as Agricultural Development

Bank of Pakistan) is the largest public sector financial development institution in Pakistan.

Authorized capital of ZTBL is Rs.25, 000,000,000/- divided into 2,500,000,000 ordinary shares

of Rs.10 each. Paid up capital of ZTBL are 12,522,440,670/-. The bank serves around half a

million clients annually and has over one million accumulated account holders and a wide

network of 32 Zonal Offices, 9 Audit Zones and 408 branches in Pakistan. The total number

of employees is 5,326, while 982 employees is provided by the KSSL. The ZTBL make

investment in some listed companies such as Nestle Milk pak Limited, Uqab Breeding Farm

Limited, Mubarik Dairies Limited & Dadabohy Agriculture Leasing Limited in order to generate

profit.

History:

Pakistan is basically an agricultural country, and finance has been needed for its rapid

development. With a view to meet this basic need the Agricultural Development Finance

Corporation was set-up in 1951, and was entrusted with the task of providing financial facilities

for the development of agriculture including:

Forestry

Fishery

Animal Husbandry

Poultry

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Dairy Farming

Later on the Agricultural Development Bank of Pakistan was also established in

September 1957, under the Agricultural Development Bank Act. The Bank is to provide credit in

cash or in kind, warehousing and storage facilities to agriculturists, cooperative societies and

other bodies, of which the majority of members are agriculturists. As the functions of the

Agricultural Development Finance Corporation and Agricultural Development Bank were

similar and since both were working with

capital provided by the Government, they were merged into one organization known as

Agricultural Development Bank of Pakistan on February 18. 1961. The Agricultural

Development Bank of Pakistan is a banking company for the purpose of the Banking Companies

Ordinance and the State Bank of Pakistan Act. Zarai Taraqiati Bank Limited (ZTBL) erstwhile

Agricultural

DevelopmentBank of Pakistan (ADBP)is the premier financial institution geared towards thedev

elopment of agriculture sector through provision of financial services and technical knowhow.

The restructuring of former ADBP is being carried out with the aim:

To uplift the agriculture and rural sector by raising farm productivity.

Streamlining the institutional credit.

Increasing income generating capacity of the farming community.

ZTBL was incorporated as a Public Limited Company on 14th December, 2002through

repeal of ADB Ordinance of 1961.

The new corporate structure redefines the bank's status as a Public LimitedCompany

registered under Companies Ordinance'1984with an independent Board of Directors which aims

at ensuring good:

Governance,

Autonomy,

Delivering high quality

Reason to Change ADBP to ZTBL:

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The restructuring of the former ADBP is being carried out with the aim to uplift the

agriculture and rural sector by raising farm productivity, streamlining the institutional credit and

increasing the income generating capacity of the farming community.

Mission:

To play effective role in the promotion of economic growth, by enhancing

theavailability of credit to the agriculture sector, through reliable access to sustainablefinancing,

special lending programs, technical assistance, and other products

& services,and to promote career development opportunities for increasing professionalism andte

chnical proficiencies of employees.

Vision:

 Dedicated to serve the needs of the farming community, by delivering financial products

and technical services on a competitive and sustainable basis, in a convenient, efficient and

professional manner, leading to success of the Bank and the farmers.

Objectives:

Develop and operate as a financially and operationally sustainable R.F.I of the country.

Assist rural community, particularly the small farmers, in raising their productivity and

income levels through timely delivery of credit, advisory and ancillary services.

Build ZTBL's image as a proactive, client friendly, financially & operationally

sustainable with indigenous product deployment.

Establish and provide backward and forward linkages to strengthen agri. value added

commodity chains.

Engage in public - private and wholesale - retail partnership to deepen outreach and

reduce operating cost.

To function as a rural commercial bank to mobilize rural capital formation and to

commercialize the agri. sector by delivering the true value of credit to the client. Provide

a wide range of risk insurance products to its clients.

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Open up its venues of operation to Domestic & International Banking Industry to avail

comparative advantages.

Head Office:

Head office of ZTBL is located at Islamabad.

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Board of Directors:

Mr. Mehboob Hussain (Seceratory)Mr. Asif Sharif

(Director)

Mr. Saeed Ahmed Director)

Mr. Abdul Bari (Director)

Mr. Majyd Aziz (Director)

Mr. Mohsin Aziz (Director)

Mr. Asif Sharif (Director)

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Mr. Talat Mehmood President/ CEO

Mr. Yawar Ali (Chairman)

Mr. Zia ul Mustafa Awan (Director)

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2. Infrastructure of ZTBL:

The overall management, functions, meetings of the ZTBL is control by two committees

known as “Board & Management Committees”. The sub-committees of these two committees

are explaining as under;

(i) Board   Committees:

Audit Committee:

This committee has one chairman, four members that are the directors of the ZTBL and one

secretary from the Audit Department. The designation of secretary is the “Chief Internal

Auditor” of Audit Department.

Human Resource Management (HRM) Committee:

This committee has one chairman & president of the ZTBL, four members that are the directors

of the ZTBL and one secretary from the HRM Department. The designation of secretary is the

“Head” of the HRM Department.

Risk Management Committee:

This committee has one chairman & three members that are the directors of the ZTBL. But one

member designation is the risk manager. But in risk management committee, the company

secretary act as member and secretary as well.

Information Technology (IT) Committee:

This committee has one convener & two members that are the directors of the ZTBL. One

member is from IT Department & his designation is the Chief information officer. While one

secretary (Head) of IT Department.

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(ii) Management   Committees:

Assets Liabilities Management Committees:

This committee has one convener (CEO) & three members. The designation of the first member

is the SEVP of Operation Department. The designation of the second member is the risk manger.

But the third member (Chief Financial Officer) acts as member and secretary as well.

Executive Coordination Committee:

This committee has one

convener (CEO), one secretary (Compliance Officer) & three members. Thedesignation of the

first member is the SEVP. The designation of the second member is the EVP. The designation of

third member is the risk manger.

Organization   Structure   of   ZTBL:

The general direction and superintendence of the affairs of the bank are entrusted to a 12

members Board of Directors consisting of a chairman appointed by the Federal Government, the

Federal Government officers from the Ministries of Finance and Food and Agriculture. There are

four officers of the four Provincial Governments and one non official nominated by each

province. One member on this board represents the State Bank of Pakistan also. In ZTBL, the

president supervises and directs the senior executive who supervises and directs the senior vice

president, and senior vice president control voice president, who control Assistant vice president,

who finally supervise officers. The management hierarchy of bank is as follows;

Board of Directors

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Shareholding of Zarai Taraqiati Bank Limited (as on 31.12.2012)

SR. NO. NAMES OF SHARE HOLDERS NO. OF SHARES AMOUNT (Rs).

01 Government of Pakistan 1,251,189,067 12,511,890,670

02 Government of Punjab 292,340 2,923,400

03 Government of Sindh 125,545 1,255,450

04 Government of KPK 71,740 717,400

05 Government of Balochistan 37,875 378,750

06 Government of Erstwhile East Pakistan 527,500 5,275,000

Total:- 1,252,244,067 12,522,440,670

President

Committees of ZTBL

Management Committees

Board Committees

Executive Coordination Committee

Assets Liabilities

ManagementCommittee

Audit Committee

HRM Committee

Risk Management

Committee

Information Technology Committee

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ZTBL Staff College:

Vision

Develop core and general competencies at different tiers of management, improve the

training infra-structure and develop the Staff College as Model Banking Training Institute of the

country. 

Objectives

(i) To unleash the hidden potential of the employees.

(ii) To identify and build right set of competencies in employees to optimize their

performance

(iii) To provide equal learning and development opportunities to employees across the

bank by enhancing their understanding of new Financial & Commercial products,

regulatory requirements and technological innovations for achieving future organizational

goals.

Functions

(i) Identify, develop and impart best possible training & development innovative solutions.

(ii) Assess training & development needs of all employees in the Organization.

(iii) Ensure that the Bank possess trainers who are adequately trained to design,

deliver in accordance with the training & development programs.

(iv)Establish an environment for trainees conducive to learning.

(v) Liaise with all major training agencies, trainers & vendors to the Bank’s advantage.

(vi)Overall responsibility of implementation of HR policies and programs in areas of

training, development and career planning.

(vii) Obtain feedback on various HR policies, procedures and programs to recommend

improvements.

(viii) Evaluate, propose nominations for overseas training programs through

International Banking Institutes.

(ix)Plan, arrange and conduct induction courses for new inductees, at all levels.

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(x) Arrange internships for students of HEC recognized Universities, in the field and at Head

Office.

(xi)Process and finalize Employees Education requests to encourage the Employee’s to

improve their academic / professional qualification not only for their career growth but

also to prepare the Human Resource of the bank to meet the future challenges on self

sustainable basis

Approaches of Training:

(i) Overview of subject presented by the Speaker/ Resource Person

(ii) Group discussions

(iii) Multimedia

(iv)Computer Lab Practices

(v) Case Studies

Subsidiary (KSSL):

The ZTBL has one subsidiary which is known as the “Kissan Support Services Limited”.

It was incorporated as owned subsidiary of the ZTBL thatfunction independently effective from

1st January 2006. The KSSL is a separate and distinct legal entity that is controlled by the ZTBL.

The KSSL has an authorized capital of Rs.100 million. Its aim is to provide a support to the

management of the ZTBL such as to focus on core banking business and assign non-core

activities. The KSSL operates under the Memorandum and Article of Association. 

Services:

Kissan Support Services Limited provides the following services to the Bank:

Sports:

ZTBL has been involved in different games activities and tournaments at national level.

Being its noncore activity, the Bank handed over this responsibility to KSSL. To carry out

sports activities, KSSL has developed sports department whose duty is to arrange

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participation of ZTBL teams of cricket (men & women), Shooting Ball, Squash (Men &

women), Football, Tennis (men & women) and Golf at national level tournaments organized

by PCB and different Sports Federations of Pakistan. 

KSSL sports department also arranges Inter Regional/Inter Department competitions to

promote sports and recreational activities for Bank employees. Training camps are also

arranged for the players in order to keep them fit, physically as well as mentally.

Security Services:

Providing security services to ZTBL is a non core activity of the Bank which is given to

KSSL. To execute this responsibility, KSSL has its Security Department whose responsibility is

to undertake security measures for the protection of ZTBL’s assets, employees and material. This

department also maintains effective liaison system with Zonal Offices, Staff, Customers,

Government & Intelligence Agencies, and other Regulatory Bodies. Physical monitoring by

patrolling and check system, CCTV link up system, and control room system are also developed

by the Security Department of KSSL in order to provide full proof security to the Bank.

Provision of man power:

Providing security services to ZTBL is a non core activity of the Bank which is given to

KSSL. To execute this responsibility, KSSL has its Security Department whose responsibility is

to undertake security measures for the protection of ZTBL’s assets, employees and material. This

department also maintains effective liaison system with Zonal Offices, Staff, Customers,

Government & Intelligence Agencies, and other Regulatory Bodies. Physical monitoring by

patrolling and check system, CCTV link up system, and control room system are also developed

by the Security Department of KSSL in order to provide full proof security to the Bank.

Administrative Services:

Some of the administrative services were also handed over to KSSL by the Bank as its

noncore activities. These services include:

Provision of Janitorial Services to ZTBL building.

Photocopying services.

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Provision of uniforms/liveries to Naib Qasids and Drivers.

Maintenance of security equipments.

Taking care of no profit no loss bases café for ZTBL and KSSL employees.

Sr. NO.

Categories of Employees Provided by KSSL

No. of Employees

01 Darban and armed Guards 526

02 Drivers 291

03 Naib Qasids 25

04 Mali 25

05 Typists, Assistants and senior assistants. 41

06 Security supervisors 03

07 Sweepers 07

08 Players 20

09 Others 15

Total 982

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Audit Department:

(i) Pre Audit:

Ensure availability of sanction of the Competent Authority.

Ensure all government, regulatory and statutory requirements are being fulfilled.

Ensure all BOD decisions are being followed while making payments.

Ensure Competence vis-à-vis Financial Power of Approving Authority.

Check Budget availability of the concerned GL Head.

Check completeness of documentation and verification of arithmetic accuracy.

Check Procedural Compliance.

Perform any other assignment as & when assigned.

(ii) Post Audit:

Review compliance with all the policies and procedures in place.

To know all the relevant instruction applicable on KSSL.

Report results and make recommendations to the management whenever necessary.

Follow up on the process of implementation of the recommendations.

Ensure that all internal control procedures are effectively enforced.

Ensure proper vouching/book keeping is maintained. Ensure booking of transactions in

proper GL Heads and availability of supporting documents.

Ensure that the payments are made as sanctioned by the Competent Authority and pre-

audited.

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3. Products and Services of ZTBL:

(i) Treasury:

The Treasury Division of ZTBL was formally established on May 08, 2012 after the

approval of Board of Directors (BOD). To run treasury operations on professional grounds, BOD

also approved Treasury Investment Policy, Treasury Manual, and Contingency Plan and

Brokerage lines. It has been ensured that Treasury Division (TD) will strictly work under

approved policies and guidelines for BOD and will operate within pre-specified line and limits. It

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is responsibility of each member of treasury division to ensure compliance of terms and

conditions laid down in this policy documents according to his/her role and as defined in

Treasury Manual and their specific job description. All funds available to TD will be utilized

optimally, timely and in a professional manner. Any exception may be granted based on its

rationale and justification and prior approval from ALCO. 

The objectives of the above policy documents are to define the minimum standards and

controls that need to be complied to cover risks while placing, investing or borrowing funds.

These risks relate to interest rate risk, market risk, exposure risk, and liquidity and delivery risks.

Therefore, it is an area where significant control and review measures need to be adopted by

concerned departments/division specifically and by ALCO in general.

Scope & Objectives of Treasury Division :

The Scope and objectives of Treasury Division covers all the Treasury & Investment

related activities within ZTBL; whereas the main objectives are as under:

(i) To maintain sufficient liquidity for the bank to honor its commitments as they fall due.

(ii) To maximize overall return on managed assets.

(iii) To manage liquidity, utilizing excess funds efficiently and arrange/borrow in case

of anticipated shortfall

(iv)To keep ZTBLs funding cost as low as possible.

(v) ZTBLs ability to withstand immediate liquidity shocks or longer term liquidity

management problems depend on its capacity to make rapid decisions using factual data

and take timely actions to bridge the funding gap.

(vi)To establish appropriate early warning signals that will help in identification of the

liquidity problems.

(vii) To maintain liquidity in accordance with regulatory requirements.

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Investments as per investment policy:

(i) Government Securities which includes Treasury Bills (T-bills), Pakistan Investment

Bonds (PIB) and GoP Ijara Sukuk.

(ii) TDRs

(iii) Certificate of Investments

(iv)To keep ZTBL's funding cost as low as possible.

(v) Certificate of Musharika/Modaraba

(vi)Term Finance Certificates (TFCs)

(vii) Corporate Sukuk

(viii) Mutual Funds Investments

(ix)Equity Investment

(x) Money market activities, Reverse Repo/ Repo/Clean/Call etc

(ii) Deposit Schemes:

Current Account

PSL- saving Account

Business Deposit Account (Special Account A/C)

Rozana Bachat Account (Special Account A/C)

Basic Banking Account

PSL- Term Deposit

Zarai Munafa Term Deposit Certificate (ZMTDC)

MINFA Revolving Fund Deposit A/C (MRFDA)

MINFA Special Saving Deposit A/C (MSSDA)

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Types of Deposits Rate of Return Terms & Conditions

CURRENT A/C NIL

1. Initial deposit is Rs.200/- 

2. Un-remunerative charges @

Rs.50/- pm shall be deducted on half

yearly basis. 

3. Non Remunerative Account.

4. No limit of transactions.

PLS-SAVING A/C (Regular Saving

A/c)7% pa

1. No initial deposit.

2. Max. 8 debit transactions during

the month are allowed for

calculation of profit.

3. Profit shall be calculated on the

basis of average balance during the

month.

4. Profit shall be credited to a/c on

half yearly basis.

BUSINESS DEPOSIT A/C (Special

deposit A/C)

7% pa

1. Initial deposit is Rs.10,000/- 

2. Profit shall be calculated on the

basis of daily product. 

3. No limit of withdrawals. 

4. Profit shall be credited into

account on half yearly basis.

ROZANABACHAT A/C (Special

deposit A/C)

7% to 8% pa (slabs from

Rs.10000/- to Rs.10 million )

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BASIC BANKING A/CNIL

1. Min. initial balance is Rs.1000/- 

2. It is non-remunerative a/c. 

3. Max. two deposit & two chequing

withdrawals during a month are

free of charge

4. If balance remains NIL, for

continuous period of 6 Month such

account will be closed.

PLS-TERM DEPOSIT ( slab rates

per circular )

7% TO 8% (terms 3 months to 60

months & above)

1. Min. initial balance is Rs.1000/-. 

2. Minimum holding is 3 months. 

3. PLS saving a/c rate shall be

applied in case of premature

encashment & after maturity. 

4. Request of roll over shall be made

in sufficient time before its maturity

otherwise it will be transferred to

TDR Matured a/c

ZARAI MUNAFA TERM

DEPOSIT CERTIFICATE

(ZMTDC)

8%

1. Initial deposit if 0.100 million. 

2. Scheme is restricted for Bank

employees & their relatives. 

3. Profit shall be paid at maturity. 

4. Premature encashment OR after

maturity PLS-Saving a/c rate shall

be applied.

5. Deposit of this scheme shall not

fall into the ambit of ROs

performances.

1. Short term deposit scheme for a

fixed period of 3 and 6 months. 

2. Min. deposit is Rs.50,000/-. 

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MUSTAQBIL MEHFOOZ A/C 8% 3. In case of premature encashment

OR after maturity PLS-saving a/c

rate shall be applied.

ZARAI TERM DEPOSIT

CERTIFICATE (ZTDC)

7.60 % pa(Irrespective of

premature period)

1. Minimum deposit is Rs.25,000/- 

2. Scheme is for a fixed period of 3

years. 

3. Minimum holding is 3 months 

4. If depositor maintains

Rs.2,00,000/- , he will be eligible to

get agri. Loan from ZTBL without

any appraisal fee.

MINFA REVOLVING FUND

DEPOSIT A/C. (MRFDA) 7.5% pa

1. Minimum deposit is Rs.500/- 

2. Introduced for village

organizations only.

MINFA SPECIAL SAVING

DEPOSIT A/C (MSSDA) 7.5% pa

1. Minimum deposit is Rs.500/- 

2. Introduced for village

organizations only.

(iii) Loan Schemes:

Zarai Taraqiati Bank Limited (ZTBL) is a specialized bank providing

agricultural credit in rural areas of the country. Pakistan is an agricultural country and near about

60% of its population is working directly or indirectly related to agriculture industry.

But instead of being an agricultural country Pakistan is still not gaining benefits from this

sector which it can gain. Some time we even does not able to fulfill our food requirement and

sometime we have bumper crop but does not have facilities to store them properly, in this way

we are wasting our resources. To gain benefit from agriculture sector it is required to be

modernized to increase the per acre production and also to build ware houses to store. The

27

main hindrance in the modernization

of agriculture is the unavailability of finance. The other financial institutions feel reluctant in

giving finance to farmers due to high level of risk in the production of this field. To facilitate

farmers and to help in modernization of agriculture sector the government has established

this bank which is contributing its part in achieving government objective from many decades.

ZTBL is offering a blend of products to fulfill the need of different types of customers.

Types of Loans

1. Short   Term   Loans:

Short term loans are loans for shorter period of less than a year. It includes, crop producti

on working capital loans recoverable in lump sum commencing after theharvest/marketing of

respective crops and within maximum period of 12 months.

2. Medium Term   Loans:

Medium term loans are for a period of more than a year but less than 5 years. In includes,

dairy farming and livestock etc. The installments of these loans are usually paid able in quarterly

or half yearly basis.

3. Long   Term   Loans:

Long term loans are for a period of more than 5 years. These are development loans which

require large amount and also need some time to show its result in the shape of better production.

It includes loans for tractor, agricultural machinery, poultry farming, go downs and orchard in

yearly/half yearly installments within maximum period of 8 years.

Production Scheme:

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The examples of production loan items are given below:

1. Seeds, fertilizers and fuel

2. 2.Pesticides, insecticides and herbicides manual sprayers

3. Poultry feed, chicks and medicines

4. Hire charges of farm power 

5. Water charges and electric charges for tube well

6. Production loan for growth of mushroom

7. Hired labor, water rates & fuel wood for tobacco curing.

Supervised agriculture scheme:

Under this scheme agriculture loans are given for short, medium and long term loans up

to Rs. 1.00 million per borrower/per case.

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The loans are sanctioned for In Fats, livestock, orchard, tractor, agricultural machinery, tube

well and irrigation facilities etc. under the scheme besides provision of credit, information are

provided to the farmers for planning the farm, production, guidance for implementation of the

scheme, marketing and repayment of loans.

Zarkhaiz (one window operation):

For timely and conveniently provision of credit to purchase inputs,loans are provided to t

he borrowers under One Window Operationbeing conducted twice a week during Rabi and Khari

f seasons.Applications processed on the same day whereas sanction payments are made within

three days at Branch. For Rabi Crops one window operation from October to January and for

Kharif Crops from April to September each year which is extendable as per requirement of

popular area.

Sada Bahar scheme:

For providing timely input loans for crops and working capital forpoultry and fishery etc, the

Bank has launched a Sada Bahar Scheme. Assessment for inputs requirements for the whole year

is made at the time of first application.  The amount so assessed is treated as Revolving Limit

provided it is within the security limit. The Managers are authorized to sanction such loan limits

up to Rs.O.500 million. Scheme’s main features are as under:

• Revolving Credit Limit is fixed to cater production credit andancillary requirements of the

farmers during one year period.

• The documentation once completed remains applicable for three

years with yearly cleanup/renewal without any further documents.

• The borrowers can draw the credit in lump sum or in installments according to his requirement.

• Like-wise he can repay in lump sum or in installments during the year when his cash position

allows him.

• Pass Book containing transactions in his SBS Account is supplied to every borrower free of

cost.

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Tea financing scheme:

In order to increase the tea cultivation in District Mansehra, Swat,Mutta, Shangla par and Dir in

Malak and Division, tea financing

schemehas been introduced which would not only save the hard earnedforeign exchange but wou

ld also help improve the socio-economiccondition of the inhabitants of the area. The salient

futures of the scheme are given as under:

• Maximum Credit Ceiling of Rs.60, 000/- per acre has been fixed.

• Farmers owing land up to five acres are eligible to avail loans.

• Credit will be given in 3 installments: first year Rs.30,

000/-,2nd year Rs.15,000/- 3rd year Rs.15,000/- provided thedisbursed loan is used properly.

• The credit would be repayable within 1 year with 6 years

grace period with prescribed markup of 9% per annum.Rebate of 1 % will be allowed  in mark-

up on timely repayment and proper utilization of the loan.

Crop maximization project:

Ministry of Food, Agriculture and Livestock (MINF AL), Government of Pakistan had

launched Crop Maximization Project in 109 villages in

various districts throughout the country to increase the productivity/yield of crops. Under the

project MINFAL had to provide funds of Rs, 299.893 million to ZTBL for disbursing loans to

the project farmers for purchase of inputs. Initially funds of Rs.468 Million had been received by

the Bank for the purpose. These funds were to be revolved for meeting input credit needs in the

project village’s till 30th June, 2014 after which Bank had to return the principal amount to

MINFAL. Accordingly Credit needs of the project farmers are being met by respective ZTBL

branches through Village Organizations formed for the purpose. Duly the currency of the project

Bank is authorized to charge 4% per annum mark-up on loans to project growers to meet its

operational cost, however in case of default Bank’s normal rate of return i.e. 9% p will

be applicable.

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Development Loan Scheme:

The loans for purchase of items like farm machinery, tractors, irrigation, land development,

orchard, green houses, dairy, poultry, fishery, livestock, farming…..etc are recoverable up to one

to eight years.

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Per Acre Credit Limits

Major Crops

Wheat 16,000

Paddy (Rice) 19,000

Sugar Cane 30,000

Cotton 21,000

Maize 20,000

Minor Crops

Overall Credit Limit per Borrower Rs. 1.000 Million

Sada Bahar Scheme Rs. 0.500 Million

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Potato 36,000 Bajra 11,000

Tobacco 29,000 Jawar 11,000

Mustard Mug 11,000 Gram 12,000

Tomato 19,000 Guar 3,000

Mash 3,000 Caster Oil 6,000

Lentil 11,000 Barley 9,000

Groundnut 14,000 Berceme 49,00

Sunflower 15000 Janter 4,000

Soya Bean 12,000 Garlic 26,000

Canola 13,000 Turmeric 25,000

Rape Seed 11,000 Ginger 30,000

Till (sesame) 12,500 Lacern & Shaftal 45,00

Sugar Beet 12,000

Types of Security

Immovable Property

Agricultural Land

• Under Pass Book System 80%

• Outside Pass Book System 70%

• Under Alienability Certificate 66%

• Commercial/Industrial Land under Pass Book 80%

Outside Passbook System

• Urban Residential/Commercial Plots in all localities outside Pass Book 75%

• Alienability Certificate 66%

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• Residential/Commercial Buildings 70%

• Lease holds rights of a leased land of CDA/KDA with 99 years lease70%

Moveable Property and Guarantees

1. Unconditional Bank guarantee from scheduled Banks

Up to maximum amount of an un-conditional Bank guarantee after keeping sufficient margin for

un-paid mark-up, cost, charges and expenses.

2. Guarantee issued by Central or Provincial Government

Full amount of loan and other charges are guaranteed.

3. Government securities

85% of face value or market values whichever is less.

4. Defense Savings & FEB Certificates

75% of value of certificates presented as security.

5. Fix Term Deposits Recipients

85% of face value of deposits receipts.

6. NIT Units

80% of the face value or market values whichever is less.

7. Life Insurance policies 

85% of surrender value

8. Pledge of Potatoes/Seed Potatoes price or market value whichever is less

Up to 75% of Govt. support.

Personal Surety

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Against a bond with two sureties under General Credit and one surety in

Special Schemes up to Rs.25,000/- or Up to 50% of appraised value of properties of sureties

Repayments Period

Sr. No. Types of Loans Recovery Period

1. Short term loansCrop production working capital loans recoverable lump sum commencing after the harvest/marketing of respective crops and within maximum period of 12 months.

2. Medium term loans Dairy farming and livestock etc. In yearly/ half yearly/monthly installments and within a period of 5years.

3. Long term loans Tractor, agricultural machinery, poultry farming go downs and orchards in yearly/ half yearly installments within maximum period of 8 years and above.

Recovery Procedure

a) Recovery Schedule

• Recovery schedule in each loan case as per terms of sanction

of loan is fixed and communicated to the borrowers afterdisbursement of loan.

• In case of default or failure in repayment of any installment ondue date the mark-

up shall continue to be charged and lastinstallment due to this may differ from the amount of inst

allments fixed at the time of disbursement.

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b) Issuance of Notices

• Demand notice is issued before the due date of every installment.

• A Legal Notice is issued one month after the due date informing the borrower that if the

amount is not repaid within next one month, further legal action will be taken to recover the

dues.

c) Legal Action

• Legal action can be initiated against the defaulter if loan is not repaid even after expiry of

legal Notice period.

• Where the court in bank's favor has decreed a case, account isto be settled by recovery of

amount from the auction of them or tagged property.

• The bank may purchase the mortgaged property if

consideredfeasible to dispose it off later on through auction or in any manner deemed fit for

getting the best price.

• The bank may dispose of the mortgaged properties of defaulters for satisfaction of its dues

without intervention of courts

underFinancial Institutions (Recovery of Finances) Ordinance2001.Rescheduling of Loan

Repayment Facility.

d) Rescheduling of Loan Repayment Facility 

• ZTBL allows rescheduling of repayment of installments to itsborrowers in order to maintain

credit discipline and to

mitigatetheir genuine problems in real hardship cases and in areasdeclared as calamity hit by the 

respective ProvincialGovernments

• The Rescheduling facility is to be considered by bank on case to-case basis and is to be allowed

on borrower's request only.

• The relaxation in recovery period shall not be allowed beyond one year in any case.

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• The borrowers shall have to execute a supplementary loanagreement on Non Judicial

• Stamp Paper of appropriate value to give legal cover to extended period.

• The borrowers shall have to pay the return for the extended period.

e) Down Payment for Rescheduling of Loans

Rescheduling Number

Rate of down payment as against due

installments to the rescheduled

1st 10%

2nd 20%

3rd 30%

Other Schemes:

(iv) Hajj Applications:

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(v) Locker Facility:

Zarai Taraqiati Bank Ltd. apart from its core functional activity marked with country

based agri-business, has started to serve its valued customers by offering lockers facility.

Initially, this facility is being offered at following 12 branches:

S.No Name of Branch Phone No. Address

1 H.O Branch Islamabad 051-9252782 Head Office Building, 1 Faisal Avenue Zero Point Islamabad

2 Islamabad Branch 051-9252022 Block-7/F, ZTBL Officer Colony G-7/2, Islamabad

3  Lahore Branch 042-7353380 47-C, Sharah-e-Quaid-e-Azam, Lahore

4 Peshawar Branch 091-2262279 Chughalpura, GT Road Reshawar

5 Gujranwala Branch 055-9200206 D.C Road, Gujranwala

6 Faisalabad Branch 041-9210008 Opposite Punjab Medical College, Faisalabad

7 Multan Branch 061-9200509 61-A Abdali Road, Multan

8 Sahiwal Branch 040-9200424 915-D Block Farid Town Sahiwal

9 Sargodha Branch 048-9230491 Katchery Road, Sargodha

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10 Khan Pur Katora Branch 068-5573079 Model Town- Near Paradise Cinema Khan Pur Katora (RYK)

11 Shafi Court Branch 021-99206006 Shafi Court Building Mere weather Road Karachi South

12 Main Branch Gulshan-e-Johar

021-34613618 St 4/3-A Block No.1 KDA Scheme-36 Gulistan- e -Jauhar Karachi

Following are the approved rates for rent of lockers and key deposits against which lockers will be allocated:

Type Specification Rent Per AnnumRent after one month from due date

Key Deposit

Small 6-1/2"x4-1/2"x23" Rs.1,200/- Rs.1,500/- Rs. 5,000/-

Medium 13-1/2"x4-1/2"x23"

Rs.1,800/- Rs.2,250/- Rs. 10,000/-

Large 13-1/2"x8-1/2"x23"

Rs.2,500/- Rs.3,125/- Rs. 15,000/-

Break Opening charges is Rs. 1500/- or Actual which-ever is higher

4. Analysis

Introduction:

The analysis is a tool, which is used for checking the overall performance of any organization. It

is not only used on national level but also on international level for the purpose of  checking

internal and external factors that influence the organization, positively or negatively and leads

the organization towards failure to success.

InternalThreats

Helpful

External Threats

Harmful

Strengths

Opportunities

Weaknesses

Threats

40

There are various analyses, such as the SWOT and PEST.

(A) SWOT   Analysis:

The word “SWOT” is abbreviated to strengths, weakness, opportunities and threats while

analysis is a tool, which is used for checking the overall performance of any organization. The

SWOT analysis is strategic  tool used to evaluate the overall organization’s strengths, weakness,

opportunities & threats and involves specifying the objective of the organization and identifying

the internal and external factors that are favorable and unfavorable to achieve that objective.

The SWOT analysis is designed to lead an organization from failure to success. Finally,

we do the strength & opportunities because it is helpful while we avoid the weaknesses and

threats which are harmful for organization, which is shown in below figure.

41

1. Strengths:

Strengths are the attributes of the organization which are helpful in achieving the objective.

In other words, strengths mean, the activities that an organization does well favorable chances or

positive factors in the internal environment due to which organization achieve the objective. The

strengths of the ZTBL are given as under;

(i) Strong   Supervision   and   Management:

The supervision and management of the ZTBL is very strong such as step by step, effective

and efficient that leads the bank toward failure to success.

(ii) Provide   many   Facilities for Employees:

ZTBL provides the facility of health, safety and employee relations & training for the

purpose of maintaining the employees.

(iii) Employee’s   Traits:

All staff members are well mannered in attitude, communications & following the ethics.

(iv) Risk   Management:

  The risk management of the ZTBL is still in the process of restructuring and efforts have

been put in place to adequately equip the risk management function with credit review, credit

risk rating and value at risk models. Pakistan is an agriculture country with major portion of its

economy dependent on agricultural sector. ZTBL recognizes this responsibility and thus also

caters to agriculture sector which promises high returns.

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(v) Expansion of ZTBL:

The ZTBL is expanding day by day because customer accepts it. Its network expanded to 406

branches and 32 zonal offices in the Pakistan, which will attract large number of customers.

(vi) The   Elevator   and   Cameras   Systems:

In the age of globalization, the elevator makes it possible to save time. While the cameras in

ZTBL, make the employees to stress on their work which is assigned or given.

2. Weakness:  

The attributes of the organization which are harmful in achieving the objective are

calledweaknesses. In other words, weakness means, the activities that anorganization lakes or un

favorable chances or negative factors in the internalenvironment due to which organization do

not achieve the objective. The weakness of the ZTBL is given as under;

(i) Understaffing:

The total number of employees is 5,326 in the ZTBL Head office. In age of technology

and globalization, the understaffing may cause unnecessary work burden on employees

decreasing their efficiency.

(ii) Lack of Refreshment Courses:

43

Although the ZTBL has its own Training and Development Canter

but it needs to give refreshment courses to its employees more frequently so that they can

explore new dimensions and conquer worlds.

(iii) Seniority Based Promotion:

Promotion in the ZTBL is purely on seniority basis rather than on performance. This really

de-motivates the employees because they know that it doesn’t matter whether they perform well

or bad.

(iv) Lake of Job Rotation:

Most of the employees work in a particular department and they specialize only in one

department. In case of absence of one employee, any other employee cannot perform this work.

In this way bank not only loses the business but also results in dissatisfaction of the customer.

(v) Shortage of skillful Labor:

The shortage of skillful labor or manpower leads the organization from success to failure.

Because in the ZTBL, there are many contract and temporary based employees that has lake of

managerial& financial skills.

(vi) Lake of Qualification:

The employees working on the same position may have different degrees like B.Sc., B.A.…

etc which devaluate the students of MBA, BBA, and other well qualified staff.

So there is a lack of professional

staff in different departments and lack of theoretical knowledge of the employees as well.

(vii) The Rate of Absenteeism and Turnover:

The absenteeism & turnover rate is too high that it results the conflicts in the organization.

3. Opportunities:

44

  The attributes of the organization which are helpful in achieving the objective are called

opportunities. In other words, opportunities means, the activities that an

organization does well or favorable chances or positive factors in the external environment

due to which organization achieve the objective. The opportunities of the ZTBL are given as

under;

(i)  Proper Utilization of Recourses:

The Organization is made up three types of recourses, such as human, physical &

financial resources which come from external environment. However, in the age of globalization

for achieving growth, the competent, skillful and the English speaking employees are one of the

requirements of the organization.

(ii) Increasing Extensive Advertisements:

The ZTBL can increase the extensive advertisements of new products, services,

vacancies, in order to increase customers & heir competent employees from external

environment.

(iii) Mobile Credit:

The ZTBL can start mobile credit which is the best way to effectively utilize its present

resources to gain a competitive edge.

(iv) Increasing the Amount of Loans and Capital:

The ZTBL increases the amount of loan for their customers, which is five lacks, in order to

attract the large number of customers. The ZTBL issue a large amount of capital to agriculture

sector, in order to, utilize its resources more efficiently and to earn more profit.

(v) Creating Public Relations:

The ZTBL also, involves in creating public relations that will increase the image and

profitability of the bank. Often, public relations are conducted through the media that is,

newspapers, television, magazines, internet….etc that’s attract a large number of customers.

45

4. Threats:

  The attributes of the organization which are harmful in achieving the objective are called

threats. In other words, threats means, the activities that an organization lakes or negative factors

in the external environment due to which organization do not achieve the objective. The threats

of the ZTBL are given as under;

(i) Avoid Discrimination:

The ZTBL can avoid discrimination because it is harmful for the bank in achieving its

objective. The bank can hire the employees from external environment. The right person is for

right for job will leads the organization towards failure to success.

(ii) Avoid Illegal Activities:

The employees of the ZTBL can avoid the illegal activities in external environment that

will reduce the reputation and image of the ZTBL.

(iii) Internet Banking:

It is the main problem that was found to be a lack of trust in the new banking channel by

customer. However, effective complaint management

can increase customer’s loyalty and trust in Internet Banking. 

However, “Crises Management Plan” has been developed which is under review by the

senior management. The objective of this plan is to have clear guidelines and communication in

the event of any crises occurrence, which may threaten the safety of its staff, the security of its

assets, the continuity of its operation and the reputation of the ZTBL.

PEST Analysis:

1. Political analysis:

46

Despite all international and public perceptions today, Pakistan is a functioning

democracy and gradually there is a change in complexion and composition legislatures

with more educated people and women entering into politics. Similarly it helps in

developing best strategies to implement that can support the revival of bank industry.

Like in the era of nationalization bank had to suffer as other industry that is why the

impact is still found in the performance of this industry.

2. Economic analysis:

Although banking sector development is important at early stages of economic growth,

general liberalization presuming a homogeneous bank role may not necessarily promote

growth. The estimated cost structure indicated that state-owned commercial banks are

large enough, while development financial institutions and private banks can expect to

obtain cost saving advantages by expending their operations. Since scope economies are

significant, portfolio diversification generally increases bank profit. In addition, private

bank are the most efficient, followed by foreign and private banks. Public banks are the

least efficient.

3. Social analysis:

Banks have always been helpful for the people in improvement of living condition of

poor people in various forms like giving loans for starting business or directly providing them

the instruments that could enhance their living conditions. Similarly ZTBL always tried to

provide loans to the needy people on soft terms and also helped to eradicate unemployment by

providing job opportunities.

4. Technological analysis:

There is inadequate communication infrastructure.

Smaller and lowest computer facilities.

Inadequate IT training.

There must be an efficient IT department.

(C) Financial analysis:

47

Financial Analysis is the most important analysis which is conducted to check the

financial position of any organization. The brief financial analysis of Zarai Taraqiati Bank

limited.

Zarai Taraqiati Bank Unconsolidated Condensed Interm Statement Financial

Position as at 31 March 2014.

Un-Audited

31st March 2014

Audited

31st March 2013

Total Assets 142,615,634 148,448,277

Total Liabilities 109,435,609 115,965,018

Net Assets 33,180,025 32,483,259

Zarai Taraqiati Bank Unconsolidated Condensed Interm Profit and Loss Account for Three Months Period Ended 31st March 2014

March 31st 2014 March 31st 2013

Total Profit 265,083 269,833

Zarai Taraqiati Bank Unconsolidated Condensed Interm Statement of Comprehensive Income for Three Months Period Ended 31st

March 2014

Quarter Ended

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March 31st 2014 March 31st 2013

Total Comprehensive Income 696,766 511,178

Zarai Taraqiati Bank Unconsolidated Condensed Interm Cash Flow Statement for Three Months Period Ended 31st March 2014

March 31st 2014 March 31st 2013

Cash Flow from Operating Activities (6,971,265) (1,701,444)

Cash Flow from Investing Activities 1,782,548 (5,553,041)

Cash Flow from Financing Activities 7,553,037 5,270,582

6. FINDINGS & RECOMENDTIONS

A single visit of a single branch of an organization can never provide all the information

about that organization. So we have found only some of the problems which have been pointed

out. We have also recommended some possible solutions of these problems. The finding and

recommendation for ZTBL are given as under;

Findings:

Quarter Ended

49

I. The employees working on the same position may have different degrees like B.Sc., B.A.…

etc which devaluate the students of MBA, BBA, and other highly qualified staff. So there is a

lack of professional staff in different departments.

II. There is no job rotation for employees which create job burning.

III. The officers of RRD face many problems during preparing different financial reports which

consume lot of time.

IV. The employees are not satisfied with the compensation package; they are just getting

experience and want to shift to another organization that has strong position in the agriculture

finance market.

V. The availability of staff training makes employees aware of work and is know done by the

ZTB Staff College which is provided by the KSSL.

VI. The absenteeism & turnover rate of the employees is too high that’s results the

misunderstanding and conflicts in the bank.

VII. In the ZTBL, there is problem is understaffing of employees. The total number of

employees is 5,326 in the ZTBL Head Office. In age of technology and globalization, the

understaffing may cause unnecessary work burden on employees decreasing their efficiency.

CONSLUSION:

During our assignment on ZTBL, we found that ZTBL has high level of professionalism

and challenging environment and its culture is friendly. ZTBL seems Top Agriculture Financing

in the future as indicated by the financial indicators. It keeps energy and potential to serve the

deserving clients in all over the world. The bank has set itself a vision to be a world-class bank.

This can only be achieved with dedication and a passion to excel in every activity. The

bank is really working well and contributing a valuable part in the economy of Pakistan through

tax, giving loan to government, giving loans to the businesses for their survival and expansion,

50

generating a well skilled human resource and employment etc. We have learnt a lot during this

assignment.

Recommendations

ZTBL should improve the Management system. They should be employee and customer

oriented. They have to introduce the dress coat into the organization. Loaning procedure should

be easier and convenient to the customers and easy processing system. They should adopt the

new agriculture technology for the high level production to increase the GDP level of the

country. ZTBL has to play vital role for introducing new energies to overcome the problems of

the fuel and bio gas. Political involvement should be eliminated so that they can take good

decision and actions for the better disbursement. Marketing department should play vital role for

introducing new products. They should also play role for advertise their products and features

and functions of the products. ZTBL Head Office has to update the annual reports and manuals

annually. They should hire the employee on the merit basis. Their employees should have

knowledge about their organization and about its department where they are working. Employees

should be qualified and productive.