PRESENTERSPRESENTERS

NAZLE PERVEEN NAZLE PERVEEN MI09MBA034 MI09MBA034

MAMOONA FAIZ MAMOONA FAIZ MI09MBA055 MI09MBA055

WAJIHA FAROOQWAJIHA FAROOQ MI09MBA068MI09MBA068

CONTENTS

History of BOP Vision Mission Goals Core values Organogram Achievements First Punjab Modaraba (FPM) Financial ups and downs of BOP

Brief history of the BOPBrief history of the BOP

The Bank of Punjab was established on 16The Bank of Punjab was established on 16thth November ,1989. November ,1989.

In 1994 BOP was converted into Scheduled In 1994 BOP was converted into Scheduled commercial bank.commercial bank.

Today BOP is working with its network of Today BOP is working with its network of more than 272 branches at all major more than 272 branches at all major Business centers in Pakistan.Business centers in Pakistan.

Almost all braches are connected via On-Almost all braches are connected via On-Line system.Line system.

The bank provides almost all banking The bank provides almost all banking services like Deposits in local currency , services like Deposits in local currency , Remittance , Advances to businesses , Remittance , Advances to businesses , Trade , Industry and Agriculture.Trade , Industry and Agriculture.

VISIONVISION

To be customer focused bank To be customer focused bank

with service excellence.with service excellence.

MISSION STATEMENTMISSION STATEMENT

To exceed the expectation of our To exceed the expectation of our stakeholders by leveraging our stakeholders by leveraging our relationship with the Government of relationship with the Government of Punjab and delivering a complete Punjab and delivering a complete range of professional solutions with range of professional solutions with the focus on programme driven the focus on programme driven products and services in the products and services in the Agriculture and Middle Tier Markets Agriculture and Middle Tier Markets through a motivated team through a motivated team

GOALSGOALS

Ensure its performance more than its Ensure its performance more than its matchesmatches

Maintaining a comprehensive rangeMaintaining a comprehensive range Be innovation progressive Be innovation progressive Act as reputable efficient and responsible Act as reputable efficient and responsible

organization organization Peruse personal policiesPeruse personal policies

CORE VALUESCORE VALUES

Our customer Our customer as our first priorityas our first priority Profitability Profitability for the prosperity of our stakeholdersfor the prosperity of our stakeholders Corporate Social ResponsibilityCorporate Social Responsibility to enrich the to enrich the

lives of community where we operatelives of community where we operate Recognition and reward Recognition and reward for the talent and high for the talent and high

performing employeesperforming employees Excellence Excellence in every thing we doin every thing we do Integrity Integrity in our dealingin our dealing Respect Respect For customers and each others For customers and each others

ORGANOGRAMORGANOGRAMBOD

President

Central audit Committee

GM Country RM GM IT GM Liability

Country Head

Unit Manager

Regional chief

Area Manager

Branch Manager

Officer training

The Organization ManagementThe Organization Management

Chairman Chairman Mr. Javed MehmoodMr. Javed Mehmood

Acting President Acting President Mr. Sajjad HussainMr. Sajjad Hussain

Secretary to Board Secretary to Board Mr. Raza SaeedMr. Raza Saeed

General Manager Operation General Manager Operation Mr. Sharjeel MasoodMr. Sharjeel Masood

Gneral Manager IT Gneral Manager IT Mr.Feisal Azmat KhanMr.Feisal Azmat Khan

Head Audit and Inspection Head Audit and Inspection Mr. Muhammed HanifMr. Muhammed Hanif

General Manager Finance General Manager Finance Mr.Nadeem AmirMr.Nadeem Amir

General Manager General Manager

Administration / HR Administration / HR Mr. Mohd. Sadiq KhanMr. Mohd. Sadiq Khan

BOP Awards and AchievementsBOP Awards and Achievements

Excellence Awards by the Central Board of Excellence Awards by the Central Board of

RevenueRevenue

Third Kisan Time AwardThird Kisan Time Award

Best Corporate Report AwardBest Corporate Report Award

1616thth Bolan Excellence Award Bolan Excellence Award

Achievement AwardAchievement Award

FIRST PUNJAB MUDARABA

HISTORYHISTORY

FPM was established in the year 1992 and FPM was established in the year 1992 and is being manage by Punjab Mudaraba is being manage by Punjab Mudaraba Services (Pvt) Ltd a wholly owned subsidary Services (Pvt) Ltd a wholly owned subsidary of THE BANK OF PUNJAB. The liability of THE BANK OF PUNJAB. The liability generation is through COM. FPM is working generation is through COM. FPM is working to introduce new and innovative products to to introduce new and innovative products to enhance its range of services.enhance its range of services.

VISIONVISION

To be a leading NBFC in country that To be a leading NBFC in country that recognizes its corporate responsibilities, recognizes its corporate responsibilities, focus on quality services and maintain a focus on quality services and maintain a work environment where achievements and work environment where achievements and innovative solutions are recognized and innovative solutions are recognized and rewarded.rewarded.

MISSIONMISSION

To achieve constant growth coupled with To achieve constant growth coupled with sustainable profitability and to participate sustainable profitability and to participate actively in the economic development of actively in the economic development of country through superior quality services country through superior quality services culture solution oriented approach culture solution oriented approach delivered through an efficient and delivered through an efficient and motivated sources. motivated sources.

MANAGEMENT AND OWNERSHIPMANAGEMENT AND OWNERSHIP Management:Management:

The management of the Modaraba rest with the The management of the Modaraba rest with the Punjab Modaraba Services (Pvt.) Limited a wholly Punjab Modaraba Services (Pvt.) Limited a wholly owned subsidiary of The Bank of Punjab. Chief owned subsidiary of The Bank of Punjab. Chief Executive of the Modaraba is Mr. Fawzi Khawaja, Executive of the Modaraba is Mr. Fawzi Khawaja, who reports to the Board of Directors of First Punjab who reports to the Board of Directors of First Punjab Modaraba.Modaraba.

Ownership:Ownership:

Ownership break-up is as follows:    - Ownership break-up is as follows:    - PMSL & BOP39.17%   - PMSL & BOP39.17%   - NIT06.98%   - NIT06.98%   - Banks & NBFCs05.49%   - Banks & NBFCs05.49%   - Insurance Companies  03.74%   -Insurance Companies  03.74%   - Mutual Funds Etc. 09.16%   - Mutual Funds Etc. 09.16%   - General Public 35.46%General Public 35.46%

ISLAMIC BANKINGISLAMIC BANKING

There are two basic fundamentals of There are two basic fundamentals of Islamic financingIslamic financing

It has to be Asset based financingIt has to be Asset based financing

There has to be element of riskThere has to be element of risk

Ideal Modes of FinancingIdeal Modes of Financing

Based on above fundamental principles, the Based on above fundamental principles, the most ideal mode or instrument of financing most ideal mode or instrument of financing in SHARI’AH are MUSHARAKA and in SHARI’AH are MUSHARAKA and MUDARABA. MUDARABA.

LINES OF BUSINESSLINES OF BUSINESS

Lending under modes of financing main Lending under modes of financing main vehicles are vehicles are

MorabahaMorabaha

IjarahIjarah

Musharika Musharika

MORABAHA FINANCINGMORABAHA FINANCING

Refers to an agreement with the buyer (client) Refers to an agreement with the buyer (client) to provide specific goods/commodity at a to provide specific goods/commodity at a marked up price and determined period of marked up price and determined period of payment. payment.

The essential feature is the goods / commodity The essential feature is the goods / commodity is purchased from a third party which is is purchased from a third party which is further sold to the buyer (client) for purpose of further sold to the buyer (client) for purpose of value addition / trading. The buyer (client) value addition / trading. The buyer (client) agrees to repay for the goods / commodity at agrees to repay for the goods / commodity at deferred price which includes profit to the deferred price which includes profit to the actual cost to the Modaraba.actual cost to the Modaraba.

  

IJARAIJARA

Leasing is, an agreement between two Leasing is, an agreement between two parties whereby one party (the lesser) uses parties whereby one party (the lesser) uses the assets owned by the second party and the assets owned by the second party and pays rental on mutually agreed terms (rate, pays rental on mutually agreed terms (rate, payment frequency & tenor)payment frequency & tenor)

Islamic Investor

Modarabah agreement

Modareb

Decl. Of trust

Islamic Lessor

Islamic Lease

Client

Sale Vendor

Investemnt 85%

Investment 85%

Equity contribution 15%

MUSHARIKA FINANCINGMUSHARIKA FINANCING

Equity participation in a business Equity participation in a business venture on profit & loss sharing bases. venture on profit & loss sharing bases. The profit can be shared on mutually The profit can be shared on mutually agreed bases and the loss is shared on agreed bases and the loss is shared on proportionate capital deployment. proportionate capital deployment.

Musharika Finance permits the Musharika Finance permits the Modaraba to participate in the Modaraba to participate in the management of the business venture if management of the business venture if desired.desired.

CREDIT RATINGCREDIT RATING

First Punjab Modaraba is a quoted First Punjab Modaraba is a quoted Modaraba with all three stock exchanges of Modaraba with all three stock exchanges of Pakistan, established on December 23, 1992 Pakistan, established on December 23, 1992 under Modaraba Companies and Modaraba under Modaraba Companies and Modaraba (Floatation and Control) Ordinance 1980.(Floatation and Control) Ordinance 1980.

Pakistan Credit Rating Agency (PACRA) has Pakistan Credit Rating Agency (PACRA) has awarded the credit rating “A” for long term awarded the credit rating “A” for long term

and “A-1” for short termand “A-1” for short term

FINANCIAL UPS AND DOWNS OF BOPFINANCIAL UPS AND DOWNS OF BOP

Bop ‘s shares have risen 47% since Janury1, Bop ‘s shares have risen 47% since Janury1, 2006 more than twice as fast as benchmark 2006 more than twice as fast as benchmark stock indexstock index

BOP ‘s profit increases more than 10 times BOP ‘s profit increases more than 10 times from 284 million rupees in the year ended from 284 million rupees in the year ended December 2004.December 2004.

The bank ‘s default ratio fell to 2.1% as of The bank ‘s default ratio fell to 2.1% as of September 30, from 23% in 2003.September 30, from 23% in 2003.

Deposits rose to 115 billion rupees as of Deposits rose to 115 billion rupees as of September,30 , from 24 billion rupees at the September,30 , from 24 billion rupees at the end of 2002.end of 2002.

Loans increased to 89 billion rupees from 6.6 Loans increased to 89 billion rupees from 6.6 billion rupees . billion rupees .