internship report me

THE BANK OF PUNJAB

PREFACE

In Bachelor of Business Administration, Internship Program is an important part to give students

an opportunity to have experience of practical field. Unless and until the students experience the

novelty of practical work, their knowledge of what they study in theoretical courses remains

incomplete. The most important point in an Internship Program is that the student should spend

their time in a true manner and with the spirit to learn practical orientation of theoretical study

framework.

This internship report is on my six weeks practical training at The Bank of Punjab Abdul Hakim

Branch. In this internship report I have tried to give details about The Bank of Punjab, working

and the functions of different departments of the bank.

UNIVERSITY OF CENTRAL PUNJAB

THE BANK OF PUNJAB

ACKNOWLEDGEMENT

First of all, I thank my all respected teachers for providing me comprehensive knowledge about

Business Administration Courses and also for providing me the opportunity to complete my

internship program in The Bank of Punjab to enhance my practical knowledge about banking

sector of Pakistan.

I am highly thankful to the staff members of The Bank of Punjab. Who really cooperated with

me and provide me their complete guidance. As banks are very much sensitive about their

secrecy, even then after taking an understanding, they let me handle their delicate operations.

My special thanks to the in charge of internship and placement that arranged internship and

provided me with his kind guidance at each and every step whenever I felt difficulty.

_____________________

M. Ahmad Masood


THE BANK OF PUNJAB

DEDICATION

TO MY BELOVED PARENTS

Who always wishing and praying for

My success in every sphere of life I pray to Almighty Allah to

enable me to serve them so well and kindly as they did in my life

especially in my childhood

Aamin!


THE BANK OF PUNJAB

EXECUTIVE SUMMARY

This report has been prepared after getting internship in The Bank of Punjab Multan road Abdul

Hakim. I have given the task to complete my internship in any organization. So I have selected

The Bank of Punjab for getting practical knowledge. I have divided my work in various

departments of the bank so, I have divided my report in different portion

The first portions of my report consist on History of Bop, its board of Directors and review of committee. Further Readers will able to understand about BOP mission and Vision too. In the next coming pages, Report is giving a whole picture of BOP business volume, its products lines, what are the main clients, and what are the whole competitors. In the 3 rd portion, I have written BOP department’s information, its task, and all department function. So it will increase the awareness of the readers regarding to BOP Departments activities. The other main and vital portion of my report is my tasks which have been assigned during internship. In report I have mentioned all departments I worked and got practical knowledge. Here I want to mention these entire departments which I got training.

o Account Opening Departmento Remittance Departmento Clearing Departmento Account Departmento Credit Department

Working at BOP was indeed a great experience for me. It was first time I came to know that how to do practical work in real organizational setup. It took some time to adjust to the company’s culture and working environment as everything was new for me but with help of my colleagues and supervisor it was made possible very quickly. The Daily talks and discussion among the different staff members proved to be an effective one for me as it provided the necessary information I needed.


THE BANK OF PUNJAB

Table of ContentsPREFACE...................................................................................................................................................1

ACKNOWLEDGEMENT...........................................................................................................................2

DEDICATION............................................................................................................................................3

EXECUTIVE SUMMARY.........................................................................................................................4

Evolution of Banking..................................................................................................................................8

BANKING IN PAKISTAN.........................................................................................................................9

INTRODUCTION OF THE BANK OF PUNJAB....................................................................................10

Brief History..........................................................................................................................................10

VISION, MISSION AND VALUES.....................................................................................................11

VISION STATEMENT.....................................................................................................................12

MISSION STATEMENT..................................................................................................................12

CORE VALUES................................................................................................................................12

BUSINESSES OF THE BANK OF PUNJAB...........................................................................................13

BOP DEPOSIT PRODUCT..................................................................................................................13

Current Deposit Schemes..................................................................................................................13

Current Account................................................................................................................................13

Basic Banking Account.....................................................................................................................14

BOP Tijarat Account.........................................................................................................................14

PROFIT AND LOSS SHARING SCHEME..........................................................................................14

PLS Accounts....................................................................................................................................15

Pehlay Munafa Scheme.....................................................................................................................15

Senior Citizens Saving Account........................................................................................................15

Gharayloo Saving Account................................................................................................................15

Ziada Munafa saving Account...........................................................................................................16

PLS-Saving Profit plus Account........................................................................................................16

Munafa Hi Munafa............................................................................................................................16

Commercial Loan..................................................................................................................................16

Running Finance................................................................................................................................16

Corporate & Investment Banking......................................................................................................17

Investment Banking...........................................................................................................................18

BOP FINANCING SCHEME...............................................................................................................18


THE BANK OF PUNJAB

Clean Pakistan CNG filling Scheme..................................................................................................18

Lady Entrepreneur Scheme................................................................................................................18

Auto Lease Financing Scheme...........................................................................................................18

Car Dealer Financing Scheme...........................................................................................................18

Karobar Bharao Scheme....................................................................................................................18

Fertilizer Dealer Financing Scheme...................................................................................................18

Ali Akbar Group Franchise Financing Scheme.................................................................................18

Atlas Honda Limited-Authorized Dealer Financing Scheme.............................................................18

AGRICULTURE SCHEME..................................................................................................................19

Kisan Dost Agree Finance Schemes..................................................................................................19

Facility for Purchase of Tractor Under Green Tractor Scheme 2008-09"..........................................19

Kisan Dost Tractor Finance Scheme..................................................................................................19

Live Stock Development Scheme......................................................................................................19

Commercial Agro Services Finance Scheme.....................................................................................19

Running Finance Facility for Livestock / Poultry and Fish Farms.....................................................20

Landless People for Purchase of Buffaloes for Life Sustenance........................................................20

CONSUMER FINANCE.......................................................................................................................20

Target Market....................................................................................................................................20

Products Available.............................................................................................................................20

BOP Aasaish Loan Scheme...............................................................................................................22

REMITTANCE OF MONEY................................................................................................................25

Demand Drafts (DD).........................................................................................................................25

Pay Order...........................................................................................................................................25

Mail Transfer (MT)...........................................................................................................................25

Telegraphic Transfer (TT).................................................................................................................26

On Line Banking Facility..................................................................................................................26

BOP Services.........................................................................................................................................28

Utility Bill Collection........................................................................................................................28

Lockers..............................................................................................................................................28

PLAN OF INTERNSHIP..........................................................................................................................29

Training program...................................................................................................................................30

Account Opening Department...........................................................................................................30


THE BANK OF PUNJAB

Types of clearing...............................................................................................................................33

ORGANIZATION STRUCTURE OF THE BANK OF PUNJAB............................................................34

Structure of HRM Department in BOP......................................................................................................37

SWOT ANALYSIS OF BOP....................................................................................................................38

Strength.................................................................................................................................................38

Weakness...............................................................................................................................................38

Opportunity...........................................................................................................................................39

Threats...................................................................................................................................................39

Recommendations.....................................................................................................................................40

CONCLUSIONS...........................................................................................................................................41

REFERENCES AND SOURCES..............................................................................................................42

APPENDIX...............................................................................................................................................43


THE BANK OF PUNJAB

Evolution of Banking

The word “Bank” is derived from the word “Banqwe”. The history of banking is traced as early

as 2000 B.C. when the priests in Greece used to keep money and other valuable of the people in

temples. The priests thus acted as agents. In seventeenth and eighteenth centuries, there was a

new and important step in the history of banks. When people used to keep their gold and silver

with the goldsmiths, the goldsmiths, in return, issued receipts for the gold, promising to hand it

over on demand. Slowly people felt that if a person buys something against the payment of gold,

the seller might agree accept, instead of gold, only the receipts of the goldsmith. As there was

much convenience insuring bits of papers instead of heavy gold, the circulation of goldsmith’s

receipts grew wider. Later with the passage of time, the professional bankers, who specialized, in

issuing notes, replaced the goldsmiths. These notes were backed by precious metal and were

convertible in this metal on demand.

Therefore, in order to create confidence among the people, steps were taken to regulate the

banking organization. In this regard a conference was held in November 1548. It was decided

that the bank should be set up by the state, which should streamline the banking organization and

techniques. The first Central Bank was formed in Geneva in 1578 and the Bank of England was

established in 1694.


THE BANK OF PUNJAB

BANKING IN PAKISTAN

Banking in Pakistan starts with partition of sub continent in August 1947. At that time of

independence Pakistan laid 631 offices of 45 scheduled banks out of which 487 were located in

West Pakistan. There were also Five Hundred non-scheduled banks at that time. The Foreign

Banks at that time had a total of 19 branches in Pakistan but their roles were limited. After the

partition The Indian Banks shifted their head offices to India. The migration and shifting of

capital caused a lot of trouble for Pakistan in the field of banking.

As a result the number of offices of scheduled banks decreased from 631 to 195 by the end of

June 1948. In West Pakistan this number fell from 487 to 81, in East Pakistan from 144 to 114

and then to 69 by June 30, 1951. Among these banks Habib Bank Limited had 25 brandies and

Austria Bank had 19 branches both were run by the Muslims who shifted their head offices to

Pakistan. Pakistan made an agreement with the Reserve Bank of India (RBI) to serve as The

Central Bunk in Sep. 30, 1948. The RBI started the policies against Pakistan's interest. Due to

this reason the govt. of Pakistan with the consultation of India govt. asked the RBI to finish the

agreement from June 30, 1948 instead of Sep. 30, 1948. The govt. of Pakistan decided to

establish the State Bank of Pakistan (SBP) as its Central Bank from July 1, 1948. In the same

year the first Pakistan note of rupees 5, 10&100 were issued and Indian currency was withdrawn

from the circulation. It proved a landmark in the banking field of Pakistan. Foreign Banks were

restricted to port towns or big cities. HBL was encouraged to establish new branches all over the

country. And govt. was also advised to establish a bank as an agency for SBP. In 1947 MCB

(Muslim Commercial Bank) was established in Calcutta, then after partition its headquarter was

shifted to Dhaka, then finally to Karachi. It was the first hank which was privatized. Allied Bank

Limited was also privatized. In Bhutto regime all the commercial banks were nationalized.

National Bank of Pakistan was established in 1949 to finance jute trade in East Pakistan and took

over the agency functions from Imperial

Bank of India (IBL).Currency Chest are present in NBP in ''very large city which is protected

strictly with the State Bank assistance of SBP supervisory.


THE BANK OF PUNJAB

INTRODUCTION OF THE BANK OF PUNJAB

Brief History

Established in 1989, in pursuance of The Bank of Punjab Act 1989 and

was given the status of scheduled bank in 1994. The Bank of Punjab is working as a scheduled

commercial bank with its network of 273 branches at all major business centers in the country.

The Bank provides all types of banking services such as Deposit in Local Currency, Client

Deposit in Foreign Currency, Remittances, and Advances to Business, Trade, Industry and

Agriculture A wholly owned subsidiary of BOP First Punjab Modaraba (FPM) was established

in 1992 and is being managed by Punjab Modaraba Services (Pvt) Ltd.

The Bank of Punjab is headed by a Chairman and assisted by the Executive Directors appointed

by Govt. of the Punjab. Since its incorporation the Bank has grown manifold showing

remarkable growth in all aspects. Especially, after the current management took over the affairs

of the bank in 2008 there has been tremendous growth in all its facets of operations as a result of

application of prudent and pragmatic policies with futuristic approach. Owing to its significant

performance, profitability, financial standing and market penetration the Bank has attained

reputation of a responsible corporate citizen playing a pivotal role in economic and social

development of the country.

Currently, the Bank of Punjab is regarded as one of the most profitable banks of the country both

in absolute & real terms.


THE BANK OF PUNJAB

VISION, MISSION AND VALUES


THE BANK OF PUNJAB

VISION STATEMENT

“To be customer focused bank with service excellence”

MISSION STATEMENT

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

CORE VALUES

Our customers as our first priority

Profitability for the prosperity of our stakeholders that allows us

Corporate social constantly invest, improve and succeed

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 our dealings

Respect for our customers and each other


THE BANK OF PUNJAB

BUSINESSES OF THE BANK OF PUNJAB

The banks provide various products & services to its customer to cater their need of investment

and other social and business requirement. BOP is now leading the way to the most modern and

dynamics banking in the country.

Being a Banking company BOP is performing normal Banking transactions as well as providing

many job opportunities. As a govt. bank perform many social and economic functions e.g.

payment of pensions, receipts & payments of govt. funds, special services to farmers.

BOP PRODUCT LINE

o BOP Deposit Products

o BOP Loan Products

o BOP Finance Schemes

o Remittance of Money

BOP DEPOSIT PRODUCT

Current Deposit Schemes

o Current Account

o Basic Banking Account

o BOP Tijarat Account

Current Account

The Accounts shall be opened upon submission of duly filled-in Bank’s prescribed Account

Opening Form properly introduced in the manner provided and on submitting all such documents

as may be revised by the Bank. The Bank reserves the right to demand such relevant documents

even after opening of account as deemed necessary.


THE BANK OF PUNJAB

The minimum initial deposit will be Rs.1000.

No profit will be Payable.

Services Charges Rs. 50/- will be deducted if blow the monthly balance Rs.10000/-

The Accounts may be opened singly in one name or jointly in two or more names.

ZAKAT is livable on the assets as described in the Zakat & Ushr Ordinance 1980 (as

amended from time to time)

Basic Banking Account

The minimum initial deposit will be Rs.1000.

o No profit will be Payable.

o No fee (service charges) for maintaining such accounts will be charged.

o There will be no limit for maintain minimum balance. In the cases, there balance in

BBA’s remaining "NIL" for a continuous 6 month period, such accounts will be

closed.

Account holder will be allowed a maximum of 2 deposit transactions and 2 checking

withdrawals, free of charge either through cash/through clearing per month.

BOP Tijarat Account

The rent free locker facility will be allowed on availability of locker and after maintaining

average balance for six months. The reduction in rate of mark up on Consumer finance will be on

loan amount equal to twice of last month’s average balance. The incentive package will be

reviewed on quarterly basis and on the deposit procured vis-à-vis cost.

PROFIT AND LOSS SHARING SCHEME

o PLS Account

o Pehlay Munafa Scheme

o Senior Citizens Saving Account

o Gharalyoo Saving Account


THE BANK OF PUNJAB

o Ziada Munafa Saving Account

o PLS-Saving Profit Plus Account

Corporate Premium Account

Munafa hi Muanafa Account

PLS Accounts

PLS Savings Accounts may also be opened by charitable institutions, for Provident Funds and

other funds of benevolent nature by Local Bodies, Autonomous Corporations, Companies,

Associations, Societies, Educational Institutions, Firms etc. and in all other cases where such

accounts are required to be opened under the orders of Competent Court of Law

The rates of profits may vary from period to period via January to June/July to December each

year. Calculation of Profit on PLS Saving Accounts will be made for each calendar month on the

lowest credit balance of an account between the close of the 6th day and the last day of the

month.

Pehlay Munafa Scheme

Recently this scheme is introduced to attract investors. According to this scheme profit is paid in

advance which can be reinvested. Profit rate charge is multiplier e.g. more you invest and more

the rate will apply. Period for this scheme is three, six, nine, twelve and eighteen months.

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. The account can be opened

singly or preferably jointly (husband & wife) provided either of them is of 60 years or above.

This product is designed to attract procure deposit/savings of senior citizens by offering

attractive, innovative incentives and higher rate of profit to senior citizens.

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


THE BANK OF PUNJAB

product is designed to attract procure deposit/savings of ladies particularly housewives of

expatriates & students.

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.

PLS-Saving Profit plus Account

o Individuals, corporations, organizations and various provincial / federal government

departments can open accounts under the scheme.

o This is an operating account

o The accounts can be opened in individual or joint names.

o The deduction of Zakat and Withholding tax will be applicable as per law of the land.

o Average balance during a calendar month will be taken to determine the deposit slabs

and applicable profit rate for that month for the purpose of creating provisions.

Munafa Hi Munafa

This is a term deposit product. The term is from 1 month to 5 years and the profit is paid on

monthly basis. The minimum amount of deposit is Rs.80,000/-. The rate of profit is from 6.0 %

p.a. to 8.50 % p.a. depending on the tenure which is higher than Bank’s normal term deposits.

This product is governed under PLS rule i.e. the rates mentioned are expected and the Bank

reserves the right to revise the rates and terms & conditions of profit under Profit & Loss sharing

system.

Commercial Loan

o Running Finance

o Corporate Finance


THE BANK OF PUNJAB

Running Finance

Running sanctioned by bank and only mark up will be charged on amount withdrawal for

business need not on sanctioned amount finance facility provided by the bank to its selective

customers for business purpose only. A limit of amount is sanctioned to borrower keeping in

view the financial worth of his business. Customer has drawing power equal to loan.

The loan is sanctioned against three modes.

1. Against Pledge of Stocks / Shares

2. Against Government Securities

3. Against Hypothecation of Stocks

Pledge of Shares

This facility is generally extended to companies or individuals on selective basis against pledge

of tangible securities such as Shares. The facility is required to be adjusted periodically or within

the period as specified in the Sanction Advice/DAC.

Government Securities

Government Securities include Defense Saving Certificates (DSCs), Special Saving Certificates

(SSCs), Regular Income Certificates (RICs), and Behold Certificates, US Dollar Bonds & NIT

Units etc, issued by National Saving Centre Government of the Pakistan/National Investment

Trust.

Hypothecation of Stocks

Banks in such cases although do not have a physical custody of the goods, however have a legal

Charge/Lien established, thereon, providing a legal recourse to the Bank to take custody of the

stocks, in the event the borrowers default to repay the loan or fail to meet their obligations, as

agreed. Criteria to merit this facility are provided in the Banks Credit Policy Manual, which is

carefully assessed by Risk Managers, while recommending a credit proposal to credit committee.


http://www.bop.com.pk/HypoStocks.aspx

http://www.bop.com.pk/GovtSecu.aspx

http://www.bop.com.pk/PledgeofShares.aspx

THE BANK OF PUNJAB

Corporate & Investment Banking

Corporate Bank

The Corporate Banking shall endeavor to market new clients and retain the existing relationships

and build market share through offering superior services, competitive pricing and wide product

range to valued corporate clients including the Multi National Companies (MNCs). This Unit

taking advantage of tremendous growth potentials of corporate accounts will continue its

endeavor.

Investment Banking

Investment Banking Unit offers full spectrum of services, which include TFCs, Syndicated

Finances, Structured Finances, Leveraged Buyouts, Project Finance, Quasi-Equity Products,

Independent Advice, Equity Placements, IPO’s, Equity Underwriting, Mergers, Corporate

Restructuring, Acquisitions and other products. IBU shall also work on and come up with

providing Fund Management Facilities

BOP FINANCING SCHEME

Clean Pakistan CNG filling Scheme

BOP is providing finance for the establishment of CNG filling stations.

Lady Entrepreneur Scheme

Females are encouraged through micro finance schemes to start business with lower fiancé.

Auto Lease Financing Scheme

BOP as also lease auto mobiles to fulfill the need of society.

Car Dealer Financing Scheme

Finance is provided to dealers especially to car dealers at term and conditions keeping in view

the need of business.

Karobar Bharao Scheme

This scheme is introduced to expend the running business.


THE BANK OF PUNJAB

Fertilizer Dealer Financing Scheme

Loans are offered in rural areas to farmers to purchase of fertilizer periodically.

Ali Akbar Group Franchise Financing Scheme

According to agreement with Ali Akbar Group fiancé will be provided for its franchises

Atlas Honda Limited-Authorized Dealer Financing Scheme

An agreement is made with Atlas Honda Ltd. for financing.

AGRICULTURE SCHEME

Kisan Dost Agree Finance Schemes

Provision of financial facility to farmers for purchase of inputs (Seed, fertilizers, pesticides,

fungicides etc). Resident Self Cultivator having maximum 50 acres. The applicant should not be

defaulter of any other Bank and property should be free from any encumbrances.

Amount Maximum Rs.500,000/- according to per acre limit of the crop.

Facility for Purchase of Tractor Under Green Tractor Scheme 2008-09"

All Farmers who have been declared successful through computerized balloting, the applicant

should be a resident, owner/self cultivator of minimum 05 Acres of agriculture land free from all

encumbrances. Existing BOP borrowers having land under Bank's charge are also eligible under

this scheme.

Kisan Dost Tractor Finance Scheme

Provision of financial facility to the farmers and non farmers (those who provide tractors to

farmers on rental basis for various tractor related operations), for purchase of Tractor on Lease

Finance Basis.

Eligibility: Resident Self Cultivator having

Amount: Maximum Rs. 750,000/-

Live Stock Development Scheme

Provision of financial facility for purchase of animals (Milk & meat production, cattle farming,

poultry Farming and Fish farming) to the farmers and non farmers those who have their own live


THE BANK OF PUNJAB

stock farm/fish farm for commercial purposes) Installments are 16 equal quarterly installments

within four years excluding one year dry period.

Commercial Agro Services Finance Scheme

Provision of financial facility to the commercially viable entities with immaculate track record

for acquisition of Agri implements and equipments i.e. tractor trolleys, harvesters e.g. for

services to farmers. Commercially viable entities with immaculate track record with providing

agri the Bank/Other financial institutions.

Running Finance Facility for Livestock / Poultry and Fish Farms

Running Finance Facility for purchase of animals, cost of feed, medicines and other

running expenses of the Farm. Running Finance Facility will be provided for the type

of Live stock Farming:

o 1. Calves Fattening Farms 2. Broilers Farming. 3. Layer Farming.

o 4. Fish Farming. 5. Semen Production Unit.

Landless People for Purchase of Buffaloes for Life Sustenance

Lease Financial Facility for purchase of Milk producing Animals for landless people.

The applicant should be having space to keep animal domestically.

Maximum limit is Rs.50,000/- against only one personal guarantee.

CONSUMER FINANCE

A personal loan facility for the purchase of consumer durable goods (like TV, Refrigerator,

Cooking Oven) for their personal use repayable on easy installments.

Target Market

All serving Personnel of Armed Forces irrespective of ranks including civilian employees.

o Govt./Semi Govt. Organizations/ Autonomous Bodies

o Armed Forces, BOP Employees

o Limited Companies/ Multinational/Educational Institutions

o Registered Firms/Financial Institutions etc.


THE BANK OF PUNJAB

o Self Employed Professionals (SEP)

o Doctors, Chartered Accountants, Architects, Engineers.

Products Available

TVs, Refrigerator, ACs, Washing Machine, Computer Notebook/Laptop Bicycles, Mobiles,

Vacuum Cleaners and many more products of all renowned brands.

Down Payment 0%

Tenure/Loan Amount/ Mark-up Rate

Tenure Minimum Loan

Amount

Mark-Up

06 Months Rs. 4,000/- 0%

12 Months Rs. 6,000/- 0%

18 Months Rs. 8,000/- 09%

24 Months Rs. 12,000/- 12%

36 Months Rs. 15,000/- 18%

Eligibility Criteria

o Age between 21 and 59 Years or retirement date; whichever is earlier (59 Years at

maturity of facility)

o Minimum Take Home Salary is Rs. 5000/-

o Permanent Employee with Minimum 01 Year of service with Army.

o Have valid CNIC

Experience


THE BANK OF PUNJAB

Permanent Employ: 2 years in current business

Valid CNIC

Documents Required

o Application From

o Copy of valid CNIC

o Latest Salary Slip/ Employee Certificate on organization’s letter head or on letter duly

stamped. ( Specimens of certificates for (a) Salary received through BANK ACCOUNT

& (b) Salary received in CASH are enclosed herewith).

Security

o Life insurance of Borrower.

o undertaking by Employee & Concerned of concerned Army Unit (specimen enclosed)

o Hypothecation of Asset itself.

o One Un-dated cheque of Marked up Amount.

o

Payment Mode

In monthly installments

BOP Aasaish Loan Scheme

Nature: Personal Loan Facility for purchase of consumer durable goods from Asaish

Partners for personal use, repayable on easy installments. The maximum financing amount Rs.

5,00,000/-, No mark up for tenure up to 12 months.

Consumer Demand Finance Scheme (CDC)

A personal Demand Finance facility for meeting their personal needs & repayable through

monthly installments.

Minimum loan Amount Rs. 50,000/-

Maximum Loan Amount Rs. 5,00,000/-


THE BANK OF PUNJAB

Tenure

Minimum Tenure: 01 Year

Maximum Tenure: 05 year

Quick Cash

A Personal running finance facility for meeting the personal needs.

Loan Amount

Minimum loan amount Rs. 50,000/-

Maximum Loan amount Rs. 5, 00,000/-

Tenure

01 Year (Renewable)

BOP Car Loan

Demand finance facility to purchase brand new locally manufactured / assembled cars / imported

cars, Chevrolet & for personal use only.

Finance Amount

Rs. 2,00,000/- to Rs. 50,00,000/-

Down Payment

10% for Govt. and 15% for Pvt.

Tenure

1 to 5 years

Payment Mode

In monthly installments


THE BANK OF PUNJAB

BOP Motorcycle Loan

Salary requirement (10000/- govt. Rs. 15000/- Pvt. Employees)

3 Years job experience and valid driving license & age 25-58 years

Period of loan, 1-3 years

Amount of facility, Rs. 20,000/- to 2, 00,000/-

Down Payment, 10%

BOP House Loan Scheme

It is a long term facility for purchase of house, flat, construction of house on self owned plot or

for renovation / improvement of home.

Who can avail?

o Salaried persons

o Self-employed professional (SEP) [Chartered Accounts, Engineers, Architects

& Doctors / Dentists]

o Self-employed business persons(SEB)

Finance Amount

Purchase of house/flat

construction of house/flat

Minimum

Rs.3 lac

Maximum

No limit*

Additional/Improvement

Renovation of house

Minimum

Rs.3 lac.

Maximum

No limit*

Tenure

Purpose Minimum Maximum


THE BANK OF PUNJAB

Purchase of House/flat 3 years 20 years

Purchase of plot & construction thereon

or construction only

3 years 20 years with 01 year grace

period*

Renovation/ improvement 3 years

The BOP Debit Card holders will be able to transact at any of the 1000 + Merchants across the

country. The following services can be utilized at the Point of Sale (POS) terminals:

Purchasing

Your BOP Debit Card can be used in place of cash at all outlets where the M-Net logo is

displayed. This is a service which lets you pay directly from your account without using cash.

When a payment is made through the debit card, your account is directly debited.

REMITTANCE OF MONEY

The Bank of Punjab, like other Commercial Banks undertakes to remit or transfer money from

one place to any part of the country and outside the country. The money is remitted by means of:

o Demand Draft (DD)

o Pay Order (PO)

o Mail Transfers (MT)

o Telegraphic Transfers (TT)

o On line Transfer

Demand Drafts (DD)

The most common means of remittance in the bank is Demand Draft. When a person wants to

transfer his money to another person having account with any other bank, he can do so by

obtaining a Demand Draft. The purpose of DD is to secure the amount which we have. DD is a

very secure method of transferring the money from, one place to another.


THE BANK OF PUNJAB

Pay Order

Pay order is a guaranteed document issued by the bank, the payment of which is made by the

same branch issuing this pay order. Pay order is used to transfer the funds within the city while

Demand Draft used to transfer the funds between the cities.

Mail Transfer (MT)

To transfer money from one place to another through a bank the second means of remittance is

Mail Transfer generally called MT. Money is Transferred through MT mainly because the

transferor, unlike in case of DD does not want to obtain and take care of any instrument like DD

and, of course, to present it at the Drawer Bank. So in order to avoid above mentioned risks,

which may contribute to the loss or delay on the part of both the banker and the DD holder, the

money transferor resorts to the MT.

Telegraphic Transfer (TT)

The quickest means of remittance in The Bank of Punjab is Telegraphic Transfer normally called

TT. The application procedure involved in the TT is almost the same as is in the case of MT. In

fact in The Bank of Punjab the Application form for DD, MT, and TT is the same.

On Line Banking Facility

According to this facility the customer can make remittances and draw amount from their

account through network of branches with in the country from BOP owns branches. It is real

time on line transaction facility. Nominal commission is charged on these transactions keeping in

view the amount remitted or withdrawn.

BOP ONLINE Banking

With BOP’s state of the art online banking, you can access your account from more than 272

branches located in 65 cities across Pakistan.

Now BOP enables you to do all the following transactions in minutes through designated

ONLINE Branches.

Salient features of online banking are:


THE BANK OF PUNJAB

o Cash Deposit

o Cheque Encashment

o Stop Payment

o Account Statement

Term Deposit Receipt

1. SNTDR-7 Days

2. SNTDR-30 Days

3. TDR -1 & Above Years

4. MIS (Monthly Income Scheme)

Special Notice Term Deposit -7 Days Scheme (Sntd-7 Days)

Under this scheme, the rate of profit is given on retention of deposit for minimum 7 days. After

lapse of seven days, the customers will earn profit on same rate .The rate of profit paid in last

half year i.e. in December 2008 was 0.5 % per annum.

For this purpose the customers are issued certificate of different denomination as required by

them. On their encashment principal amount along with their profit is paid to customers through

their account maintained with the concerned branch

Special Notice Term Deposit -30 Days Scheme (Sntd-30 Days)

It is similar to above mentioned scheme in operation except the difference of 30 days. The

customer who with draw money before 30 days will earn profit proportionate to number of days

passed. The profit rate lastly announced i.e. in Dec. 2008 on this scheme was 1%. per annum.

Term Deposit Receipt (TDR)


THE BANK OF PUNJAB

On these schemes the profit is given according to different terms and conditions agreed between

the customers and the Bank. The customers are issued different certificates for different terms

and are en-cashed on their request.

Monthly Income Scheme. (MIS)

This is a term deposit which is placed for 5 years and profit is payable on monthly basis. The

certificates are issued in denomination of ten thousands and multiple of 10 thousands. The rate of

profit currently being paid is 11% per annum.

BOP Services

1. Utility Bill Collection

2. BOP Locker Facility

Utility Bill Collection

BOP has over 272 branches collecting electricity, gas, telephone and WASA, and other utility

bills like demand notice for telephone connection during business hours.

Almost all the branches have special utility bills collection counters with sun-shelters and

drinking water.

Separate booths for utility bill collection are available at all major cities for the convenience of

the public.

Branches in all major cities have electronic bill collection machines. And now-a-days BOP

management is trying to launch on-line banking system in all over the Pakistan. For this purpose

some of the branches have been equipped with this on-line facility.

For the customers’ convenience, BOP accepts cheques for payment of utility bills.


THE BANK OF PUNJAB

Lockers

Provision of lockers is safe custody service that the bank of Punjab provides to their customers

for keeping jewelry, important documents and other valuables.

1. Custodian

The bank is called the “Custodian”.

Licensee

The customer who is permitted by the bank to use the locker is called the

“Licensee”..

2- Locker’s Security

Security of all lockers is Equivalent to two years Rent for respective locker. Late payment fee

5% per month of annual rent or Max of 25% of the annual rent. The breaking charges are actual

or Rs.2000/- whichever is higher.

PLAN OF INTERNSHIP

THE Bank of Punjab branch, Abdul Hakim.

The code of branch is 0222.

Operations of the branch are controlled by Branch Manager and Operations Manager. Staff of

the branch is consist on Branch System Administrator, Operations Staff (including Grade I

officer, Grade II officer, Grade III officer and two cash officers).

Starting and ending dates of Internship:

I started internship on 14th July, 2014 which ended on 29th August, 2014.

Name of training departments and duration:

The duration of the internship program was six weeks. The staff of the branch was much

cooperative. They imparted me training in all departments of the branch i.e. Accounts Opening,


THE BANK OF PUNJAB

Accounts Department, Remittance Department, Clearing Department, Bills Collection, Credit

and Advance.

I worked in Accounts Opening Department in which I learnt how to open an account, how to

close an account and how to operate an account.

I worked in Accounts Department in which I learnt how to use Manual Faction of Accounts

Department.

I worked in Remittance department where am I learnt and worked in Entry of remittance

instruments in the system and preparation of physical instruments

I worked in Clearing Department where am I learnt about Inward Clearing, Outward clearing.

Training program

On first day of my program I was briefed by the branch manager about different branches of the

bank I was also told the major rules and regulations which were being observed by the

management of the bank I was also giving some briefing by the Manager Operation which

proved as a miles stone during my internship program. I also met different members of the staff

in different branches of the bank where am I SWOT for basic knowledge about those branches.

Then I started my working in accounting opening department.

Account Opening Department

Account Opening Form

Customer approach to bank and an account opening is given to him for competing and signed by

the account holder at different places of the form.

Completion of the Form


THE BANK OF PUNJAB

Account form is completed in all respect and checked by the bank officer and is duly signed by

the customer which is also verified by the Operation Manager.

Specimen Signature Card (SSC)

Signature specimen card is compulsory for opening an account in the bank. Without getting

signature of customer you cannot open the account.

Signature Difference Form

If client signature differs from the CNIC, the signature of the client is taken on a signature

difference form

Computerized Checking

The bank officer connected via internet to the NADRA website checks the record of his

customer’s social life.

Account Number

Account number is written on the cheque book requisition. After completion of all procedures,

the bank prepares a letter and sends it to the client at his postal address to pay gratitude to the

customer.

Cheque Book Issuance

The first cheque book consists of 25 leaves and no charges are deducted from the account the

account of client. There after bank sends a recommendation for 25, 50 and 100 leaves with

different prices and charges are deducted from the account of clients.

Procedure for Closing of an account

If customer wants to close the account, he fills up an account closing form and signs there in,

account balance should be zero, approval is taken from the Branch Manager Specimen card is

taken back and is attached with the form and account is closed.


THE BANK OF PUNJAB

Procedure of issuance of Bank Statement

A requisition slip is taken from the customer duly signed and the period from which the

customer wants to take the statement. After verification of signature Bank Statement is issue to

the customer and Rs. 55 are deducted from account of customer

Procedure for ATM/PIN Issuance

Bank of Punjab provides the ATM facility to its Customers and they can withdraw their amount

at any time through ATM. For issuance of ATM, customer has to sign an ATM form and Bank

office make an entry in the system and within 15 days bank receives ATM card from Head

Office which is given to the customer.

Accounts Department

Account department is responsible for budgeting keeping record of the revenue and expenses all

transaction that are take place in the bank and their physical prove (voucher) are come to the

account department next day these voucher are also posted to computer and the computer

generated report of daily transaction is created in IT department and then they send to the

account department to match or tell to computer generated report and their voucher of daily

transaction and save it as a physical record that these transaction are take place in the bank at

following date. The report generated by the accounts department on a daily, weekly, monthly, bi-

yearly and yearly is written in a proper format. It is neither necessary nor possible to get

acquainted by all of these reports in a short period of time.

Some of the common reports are: Monthly Assets & Liabilities, Monthly Budget Review

Report, Monthly Monitory statement, Monthly Performance Review Report and Monthly fixed

investment. For these statements, five reports carry extreme importance. The five reports are:

Daily position of advances and deposit, Statement of affairs, Daily exchange position report,

fixed assets statement and Monthly review of performance.

The account department of BOP has to record even the minor expenses of the branch like tea for

staff, stationery for the branch.


THE BANK OF PUNJAB

Remittance Department

Remittance department transfers the fund form one bank to another bank and one place to

another place. In this department collection take place. The bank of Punjab makes payment of

only open cheque on the counter and prohibits the payment of crossed cheques. Bank of Punjab

transfer money from one place to another place by way of payment order, demand draft, inward

collection, outward collection.

Demand Draft

An order to pay money to the payee who is residing outside the city, Demand draft can be for a

customer who may or may not have and account in the bank but the other person’s account must

be maintained with the bank for which the payer has demanded the demand draft.

Payment Order

Pay order is order money but this payment is to be made within city. In other words it can be said

that the payee and the payer should be in one city. In pay order payment can be made in cash,

clearing and transfer.

Clearing Department

I learnt their about clearing of different cheques and remittance handling. I was told there the

main objects of clearing.

I received all the clearing cheques and made a schedule of these cheques after making entries in

outward and inward clearing registers and sent the same to main branch where at all the cheques

were sent to NIFT(National Institutional Facilitation Technology)

NIFT

NIFT stand for National Institutional Facilitation Technologies. Clearing house of SBP has

shifted a part of its work to private institution names NIFT. NIFT collets cheques, demand draft,

pay order, travelers cheques etc. from all branches of different banks within city through its


THE BANK OF PUNJAB

carriers and send them to the branches on which these are drawn for clearing. NIFT prepare a

sheet for each branch and send it to each branch as well as to State Bank of Pakistan where

accounts of Banks are settled.

Types of clearing

Inward clearing

When cheques of other Banks are deposited in our bank, after clearing these cheques through

NIFT by the other Banks on which these are down. Accounts of customers are credited.

Outward clearing:

When cheques of our bank are deposited in other Banks and these cheques are sent to us for

verification, we debit the of our client after verification their account.

ORGANIZATION STRUCTURE OF THE BANK OF PUNJAB

Overview of The Bank of Punjab has the following portfolio working therein from the junior

most officers to the Chief Executive that is i.e.

o Chief Executive Officer

o Deputy Chief Executive Officer

o Group Heads

o Heads (General Manager)

o Regional Chiefs

o Area Managers

o Branch Managers

o Branch Operation Manager

o Team Leaders

o Relationship Manager


President

Commercial & Retail Banking Group Chief

Group HeadCorporate & Investment

Banking Group Chief

Corporate Head North &

Corporate Head South

Corporate Branches

Operations GroupChief

Risk Management Group Chief

Regional Manager

Regional Operations

Head

BranchManager

Regional Audit

Incharge

Operations Departments

of Region

Branch Operations Manager

Regional Commercial Head /

Unit Head

THE BANK OF PUNJAB

o Cash Officer

o Junior Officer

The portfolio of staff is as under gradually

o Messengers

o Telephone operators

o Gunman

o Electrician

o Drive


THE BANK OF PUNJAB

Registered Office/BOP Head Office

10-B, Block E-II, Main Boulevard

Gulberg III,lahore.

Tel: (042) 5783700-10

Main Branch

7 Egerton Road Lahore

Tel: (042) 9200419,9200187

Fax: (042) 9200351

Branch Network

The Bank of Punjab has opened 273 branches.

CITIES NO.OF BRANCHES

Faisalabad 44

Gujranwala 45

Karachi/Quetta 08

Lahore 67

Multan 63

Peshawar 08

Rawalpindi 38

Total branches 273


THE BANK OF PUNJAB

REGIONAL OFFICES

The network of the branches of BOP is divided in to seven Regions in all Pakistan. The

administrate control, operational control and increasing business volume is the responsibility of

the Regional chief. The following Region has been established up till now.

o Regional Office Lahore.

o Regional Office Rawalpindi.

o Regional Office Gujranwala.

o Regional Office Faisal Abad.

o Regional Office Multan.

o Regional Office Karachi / Quetta.

o Regional Office Peshawar

Structure of HRM Department in BOP

There are 4950 employees working in The Bank of Punjab:

o Total numbers of regular employees are 2742

o Total numbers of contractual employees are 2208

o Total numbers of executives are 473

o Total numbers of officers are 3211

o Total numbers of non clerical staff are 1266


THE BANK OF PUNJAB

SWOT ANALYSIS OF BOP

Strength

o Firstly it is Supported by Punjab Government, or funded by the Punjab Government,

it build people trust

o The bank of the Punjab is rated among top six banks in Pakistan, in perspective of

remittance business as compare other province banks

o BOP has high credit rating as compare to other province bank, because BOP is

performing positive role in economic progress through reengineered operations and

innovative financial products

o BOP is doing well in every facet of performance through clients focused policies to

maximize value and satisfaction as compare to other province bank

o Wide range of consumers financing, agriculture loans scheme as compare to others

province bank

o The BOP in strength that it is managing the Chief Minister self employment scheme

for unemployed educated youth.

o The BOP has employ energetic work ethics conducive to merit, integrity better then

peers and exceeding customers expectations as compare to other province banks

o BOP in a strength because it have Government Deposit as compare to others

o BOP has huge branches in commercial areas even remote area to meet the consumers

desired

Weakness

Poor performance of the employees because most the employee did not communicate with the managers related to task issue or for effective planning

Lack of coordination: employee could not coordinate each other if any worker face any dispute during the work, so there is need coordination in decision making, problem solving, in any issues if raise during working hours.

Traditional approach Because BOP is still using old method for working and for documentation


THE BANK OF PUNJAB

BOP has good product and service but it cannot participate in promoting its product on electronic media. Less promotion activities

Poor customers dealing as compare to other banks, employee did not behave with consumers in sweat manners

Lack of training and awareness program, BOP is not conducting extensive training to their employees, that’s why employee are not well trained in their job

Opportunity

o Due to huge Government Deposit BOP has the opportunity to expand its network in

remote areas

o The BOP management have been improved by the new management, now there is

opportunity to considered adequate effectively implemented and monitored

o BOP has opportunity it is earning commission on Government Transaction

o Due to huge revenue, BOP has opportunity to introduce new scheme related to

Consumers finance, in Retail banking, and in Agriculture loan scheme to obtained

maximum market share

o BOP Trust and reliability due to supported by Punjab Government create opportunity

to increase the deposit and profitability through expanding their products and services

to the peoples

o Due to increasing in deposit BOP could increase its investment and financing in

banking sector

Threats

o Inflation is big causes, Modern type of banking, these are the big threats for BOP, it

leads to reduce the deposit by reducing the consumers as well as working condition

o Punjab roles and regulation, the changing trend in Punjab Government policies also

become threat to BOP

o Political instability, changing or up and down in Politician parities also a big threat for

BOP, new candidate will come with new policies


THE BANK OF PUNJAB

o Due to usability among country and its economic condition investor feel hesitate to

investment their revenue

o Modern marketing concept, efficient service adopt by the competitors are also threat to

BOP

Recommendations

o BOP policy frame work should be clear and should be transparences

o BOP are required to motivate their supervisor, branch managers that they treat with their

employees fairly

o BOP should improve its Performance appraisal system and it must be on merit

o Employee training is essential, BOP should conduct training program for their workers.

o BOP should make a good working condition; e.g branch physical environment, working

desk etc. if possible avoid overcrowding and allow each worker his or her own personal

space.

o BOP should administer the associate performance review program

o BOP should build a formal recognition program, like employee of the month. Etc.

o BOP should give freedom, power to their workers to carry out their job, tasks so that they

feel they “own” the result. Because workers motivation will be increased if they have

ownership of their work.

o BOP should care employees bonus, incentives and stock options

o BOP should motivate its employee with effective communication

o BOP should follows the sound recruitment policy

o BOP should also adopting a good marketing concept, advertising strategy, promotional

activities


THE BANK OF PUNJAB

CONCLUSIONSAs we know that internship is great tool for getting practical and professional knowledge. As you

have seen, I have done my internship in BOP branch at Abdul Hakim. I have learnt lot of

professional activities from this branch. I have worked in the various department, learnt

something new from each, explanation about tasks are available in training program Report

portion. After writing comprehensively report on BOP I have reached at this point, on some

aspects, BOP has strength over other banks as you have seen in the SWOT analysis. But on the

other hand, during my stay at this branch and after write this report, I have found some issue

regarding BOP Promotion activities. BOP do not have a modern marketing concept as compare

to others, due to less participation in promotion activities BOP is facing low sales or low

deposit. Presently now till BOP has adopting tradition activities, but BOP management cannot

know it is age of competitions. As I have written in the critical analysis BOP HR practice is also

very poor. Employee motivation, employee job satisfaction is not up to the market. BOP has not

any sound Performance appraisal system, where employee could get maximum benefits. On the

other hand BOP needs a good supervision and leadership because the role of supervisor is very

difficult. It requires sound leadership skills and ability to treat all employees fairly. BOP should

teach your supervisors, managers to use positive feedback. I have also observed BOP is not

offering attractive salary to their employees as compare to other banks. Salary is not a motivator

for workers. But they do want to be paid fairly. BOP has to make sure that it has clear policies

regarding to salaries and bonuses.


THE BANK OF PUNJAB

REFERENCES AND SOURCES

Personal Experience

Regional Office Sahiwal

Regional Office Multan

Internet (www.google.com)

www.bop.com.pk


http://www.bop.com.pk/

http://www.google.com/

THE BANK OF PUNJAB

APPENDIX

o A copy of internship offer letter

o A copy of internship completion letter


internship report me

Documents

Transcript of internship report me