Acknowledgement

I am very thankful to Almighty Allah the most beneficent, the most mercy full who has given the strength to complete this task. I am also thankful to branch manager and operational manager respectively of the bank of Punjab 7, Egerton road. Without whose guidance and support it would not have been possible for me to accomplish this assignment. EXECUTIVE SUMMARY
I selected The Bank of Punjab main branch for my internship, as it has a large network in Pakistan especially in Punjab and its serving the entire country. The bank provides a 24 hours banking convenience with the large ATM network in country. During my Six week internship at BOP main branch, I tried to learn the procedure of corporate banking; therefore I spent more time working in Account Department, Clearing Department, Remittance Department, Online Banking and cash Department and Credit department.

Account Opening department Clearing Department Remittance Department Credit department

1 week 1 week and 2 days 1 day 1 day 1 week

Cash Department

During My work in various departments, I tried to observe the flow of information, different cases or documents. How to handle problems, how to arrange important documents and their filling. I tried to learn the procedure of and practices through discussion and asking question with the staff, going through instructions or manuals and finally practical in the work up to the extend the bank policies allow me.

HISTORY OF BANKING IN PAKISTAN

Pakistan came into being on 14th August, 1947; sufficient banking services were available in the areas forming Pakistan. Out of the total branches of the nearly 3,500 in the undivided India, as many as about 1,500 branches were existing in these areas. It was agreed between the two countries that reserve bank of India shall continue to function in the Pakistan territory until 30th September 1948 and that Indian notes would continue to be legal tender at Pakistan until 30th September 1948. Unfortunately, relationship between the two countries became most strained i m m e d i a t e l y a f t e r i n d e p e n d e n c e ; b a n k i n g w a s m o s t l y i n t h e l a n d s o f H i n d u s w h o i m m e d i a t e l y s t a r t e d transferring their offices and assets into India. As a result most of the banks in Pakistan were closed down and even those which were open were not doing any effective business. The number of banking office in Pakistan came down to about 200 on 30th June 1948. Branches of some European banks were also functioning in a limited manner, financing in export of crops, and their number was limited to about 20. It was only the Habib bank, which transferred its office from Bombay to Karachi Austral Asia bank was another bank, which was in existence in the Pakistan territory at the time of independence. Despite of best efforts on the part of government of Pakistan, no heady way could be made on this behalf and reserve bank of India was in no mood to help the new country. Imperial bank of India, agent of the reserve bank of India also started losing down its branches in Pakistan. History & Nature of BOP The Bank of Punjab was established in 1989 and was given the status of scheduled bank in 1994. The Bank of Punjab is working as a scheduled commercial bank with a network of almost 272 branches at all over major locations in the Country. The Bank provides all types of banking services such as Deposits in Local Currency and client foreign currency, remittances, and advances to business, trade, industry and agriculture. The Bank of Punjab has indeed entered a new era of science to the nation under experience and professional hands of its management. The Bank of Punjab plays a vital role in the national economy through mobilization of hit her to untapped local resources, promoting savings and providing funds for investments. The bank offers attractive rates of profit on all deposits, opening of foreign currency accounts and handling of foreign exchange business for example imports, exports and remittances, financing, trade and industry for working capital requirements and money market operations. The lending policy of bank is n o t o n l y c a u t i o u s a n d c o n s t r u c t i v e b u t a l s o b a s e d o n principles of prudent lending with max imum emphasis on security. Overview:

The Bank of Punjab functions as a scheduled commercial bank, with a network of 272 branches in major business centers throughout the country. It provides a wide range of banking services, including deposit in local currency; client deposit in foreign currency; remittances; and advances to business, trade, industry and agriculture. First Punjab Modaraba (FPM), a wholly owned subsidiary of the bank, was established in 1992 and is being managed by Punjab Modaraba Services (Pvt) Ltd.

Vision, Mission and values Statement: Vision, mission, goals and values are key milestones for any organization. Overall Vision: The board of directors has approved the following vision, mission and values of the bank: To be a 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 program driven products and service in the agriculture and middle tire markets through a motivated team GOALS: To achieve this objective the bank aims to: Ensure that its performance in all facts of its operations more than matches that of its competitors. Maintains a comprehensive range of domestic and international activities.

Maximize contributions from its key sources of personal m a c h i n e s b r a n d s representation and capital. Be innovative progressive and the need of its customers with in the frame work of operational and prudent risk taker. Act as a reputable efficient and responsible organization. Pursue personal policies which recognize the aspirations and performance of individual and which are suited to the devise levels of skills

Our Core Values These are the values we celebrate;

Nationalistic : Concerned about our people and our land

Trusting: We believe in building strong relationships with our customers

Reliable: We believe our customer are number one:

We will never let them down; We can be counted on to deliver more

Optimistic: We have a positive outlook for the future

Forward looking: Always expecting the best possible outcome

Professional: We are passionate about giving our customers a world-class service

Caring: Have genuine concern for the well-being and success of customers andcolleagues: Being open, honest and empathetic; Being interested and engaging with customers and colleagues.

Organizational Structure Bank of Punjab is mainly divided into two main heads, Divisions and Departments. Under the head of division department several further departments are working. These include administration, operation, business development and others etc. Similarly, department head is further categorized into several sub departments, each of it working and handling entire system at its own end. These includes Organization and Model serving its institute by providing best rules and regulations that suits banking sector, information and technology deals with updating software, developing new software, deals with online transfer and also it handles security and protective measures. Similarly, department of shares deals with share price, number of shares and its allocation etc.

Main Offices: Head Office and the main branch of BOP is in Gulberg 3, Lahore & Egerton, Lahore Respectively. The Bank has been divided into seven regions Each consisting a number of branches. Lahore Region Faisalabad Region Gujranwala Region Rawalpindi Region Karachi/Quetta Region Multan Region/Peshawar Region

Rest are the branches working under these regions. Which are almost 270 in all over Pakistan. LAHORE REGION:

In Lahore region The Bank of Punjab have 65 branches out of which 11 branches are dealing in foreign exchange. In Lahore region regional office is at 7 Ejerton roads Lahore. FAISALABAD REGION: In Faisalabad region The Bank of Punjab have 38 branches, out of which 4 branches are dealing in foreign exchange. GUJRANWALA REGION: In Gujranwala Region, there are 45 branches. In this region 5 branches are providing foreign exchange banking facility. RAWALPINDI REGION: In Rawalpindi region BOP have 41 branches with 4 branches dealing in foreign exchange. MULTAN REGION: In Multan region Bop have 60 branches, out of which 7 branches are providing the foreign exchange services facility. KARACHI REGION: There are only four branches in this region. All these branches are dealing in foreign exchange branches. Annexure of Organizational structure is attached at the end of report. Branch Structure: Bank of Punjab (7, Ejerton road, Lahore) is a main branch. It is headed by Chief Manager. All the operations are carefully looked after by Chief Operation Manager of the branch .Rest of the officers i.e. Operation Supportive and Cash Officers, credit officers are governed by Chief operation manager of branch. Branch offers loans, remittance, online facility, clearing,

account opening facility to customers. It is a main branch so it has some features not common as all branches which are as follows: Cash vault is only in main branch which is responsible to send cash to local branches of the bank. Only this branch can transfer funds to out stations This branch is responsible for clearing distribution. Cheques after the NIFT procedure firstly present in main branch and this branch distribute them among different branches. Working and allocations of officers to different departments are depicted by branch structure annexure, provided at the end of report.

SWOT Analysis SWOT stands for strength , weakness ,opportunity ,Threats. Strength and weakness is internal and opportunity and threats are external. So we can say SWOT analysis is the internal as well as the external analysis of the organization. SWOT analysis of the BOP is given as follow:

STRENGTH BOPs branches are scattered all over the country to provide services to their customers. Unlike the many other bank BOP deals with every customer. Either a salaried person or High profile customer. BOP provides cheque book and ATM within A week which is very efficient as compare to other banks. In the BOP account is opened within the day while some banks take a week for the process. The branchs employees are very polite and deal the customers as thy are their own people. Bop is the Punjab government bank so it enjoys some political benefits as well. In the syndicated loan to agriculture Bop share is most of all the other banks. The branch staff is very talented and hardworking

WEAKNESSES Formalities in the branch are very high. For example to open a account customer has to sign at least 15-20 times on a form which irritates them. The online system of the branch is poor. Some time customer has to wait 2-3 hours to avail the services. Charges in the branch are very high. For example like the other banks BOP does not provide free clearing service, free cheque book And etc The IT facilities in the branch are very poor. Systems are out of age which delays the process. In the branch employees are overburdened. A single person is performing 3-4 duties at a time

OPPORTUNITIES BOP can extend its customer base by increasing the no. of branches in other cities. Product Development: Introduction of new products and service in other segments and markets (mobile banking, credit cards) International Market: BOP can venture into the international market and extend its network Aggressive Strategy: BOP can use aggressive marketing techniques to increase its market share

THREATS The competitive environment of the bank is very hostile and aggressive Government being the major stock holder of the bank can release its share to some other party and stop supporting the bank The economic condition of the country are not stable political instability is also very dangerous for the bank as it is semi government organization.

BOP is losing its market share to the completion due to t r a d i t i o n banking practice

Conclusion The Bank has recovered much faster after a major shock, now it is traveling on t h e road of success with a steady pace. It is contri buting a lot t o w a r d s t h e i n d u s t r i a l development and mid tier segment of the P a k i s t a n s e c o n o m y . A s i d e f r o m t h e g e n e r a l banking, the development of the agriculture sector of Pakistan is a phenomenal objective which no other financial institution has yet achieved with such success. The Bank of Punjab has always strived to remain in the line of leading banks and has consistently shows steady growth in every aspect of its solutions. The vision and mission of the Bank of Punjab are true image of its existence

Recommendations BOP top management should have to revise the formalities in order to facilitate the customers. The charge on different services should be revised to compete the market. The IT facilities should be improved. The ATM machine has to be replaced as early as possible In the branch staff workshops should be organised for technical knowledge. The management has to take serious steps to recover the loans. The pressure of work and shortage of time creates negative effects; BPOs management should provide adequate facilities and allocate sufficient staff according to the requirements of each branch. Bop should launch bank cheque books to attract the customers.

Marketing Strategy

The concept of marketing is very important in the business l i t e r a t u r e . Marketing strategy is a combination of a number of marketing elements according to a m a r k e t s i t u a t i o n . I f a b u s i n e s s e n t e r p r i s e r a t i o n a l l y b l e n d s t h e e l e m e n t s o f marketing into a program of m i x , t h e n i t c o m p e t e s , s t a y s a n d e a r n s p r o f i t i n t h e market. In case, the integration of the various elements of marketing is defective, the firm cannot fight out its rivals in the market and ultimately suffers losses. Marketing strategy is defined as The set of controllable tactical marketing tools that the firm blends to produce in response to wants in the target market. The various elements of marketing strategy are as follows; Products Promotion Price Place Marketers use numerous tools to elicit desired responses from t h e i r t a r g e t market. These tools constitute a market mix. Marketing mix is a set of marketing tools that the firms use to p u r s u e i t s marketing objectives in the target market.

Competitive Strategy Value added services are provided. Pull and push strategy is adopted Performance is better. Welcome customer with smile. Innovations in banking Following software are used in The Bank Of Punjab BOP 2001 is used for transactions Symantec antivirus SWIFT software is used for foreign remittances VERISYSES is used for the recognition of the person from NADRA NAB Office of foreign asset control list(OFAC)

Kyc for risk evaluation

FINANCIAL ANALYSIS BALANCE SHEET of LATEST FIVE YEARS (000) 2011 Cash and balances with treasury banks Balances with other banks Lending to financial institutions Investment Advances Operating fixed assets Deferred tax assets Other assets Total assets Bills payable Borrowings Deposits and other accounts Subordinated loans Liabilities against assets Deferred tax liabilities Other liabilities Total liabilities Share Capital Reserves Inappropriate profit Accumulated loss 7,831 6,506,275 270,224,941 5,287,974 1,914,956 13,887 5,223,045 225,521,803 5,287,974 2,012,492 4,700,166 210,493,920 5,287,974 573,779 4,564,257 182,165,995 5,287,974 7,427,232 19,907 30,632 40,321 2,205,530 2,983,977 215,978,767 4,230,379 7,427,232 3,468,956 92,581,306 127,129,501 3,597,483 13,886,769 16,049,657 280,997,531 850,569 24,963,566 237,896,700 56,402,954 120,818,021 3,534,660 14,063,694 9,715,522 229,190,273 581,100 11,526,783 208,176,988 57,960,105 121,315,799 3,427,267 11,921,146 5,762,509 216,669,863 875,618 1,404,014 190,858,215 22,711,980 131,731,158 3,471,838 8,388,162 6,109,137 185,909,120 1,219,801 12,278,773 164,072,532 73,461,693 133,899,143 3,252,759 5,789,116 234,990,675 93,7647 17,842,915 191,968,377 7,447,375 7,309,587 1,053,550 633,333 2,450,000 3,607,107 3,276,234 2,185,782 2,178,455 1,927,662 16,698,333 2010 14,069,601 2009 13,043,705 2008 10,685,057 2007 14,210,302

(14,067,841) (14,352,989) (10,330,839) (7,658,686)

Share deposit money Surplus/(Deficit) on revaluation of assets Total owners equity

17,000,000 637,501 10,772,590

10,000,000 2,947,477 3,668,470

10,000,000 645,029 6,175,943

(1,313,395) 3,743,125

3,885,341 19,011,908

Figure 1- Balance sheet of latest 5 years

Income Statement of The Latest Five Years (000) 2011 Mark-up/return/interest earned Mark-up/return/interest expensed Net mark-up/ interest income Provision against nonperforming loans and advances Provision for diminution in the value of investments Bad debts written off directly Net mark-up/ interest income after provisions NON MARKUP/INTEREST INCOME Fee, commission and 724,499 561,688 657,114 577,630 659,488 2,244,320 (3,901,795) (13,563,498) (18,090,998) 1,712,392 941,183 366,387 246,869 531,654 2,760,724 9,241,653 18,863,580 24,479 (3,164,234) 559,604 (388,260) (581,467) (3,380,662) 1,138,969 1,616,421 21,073,271 18,801,642 19,022,494 16,614,000 3,600,161 20,685,011 2010 18,220,175 15,641,832 17,752,969 13,939,377 2009 2008 2007 17,539,538

brokerage income Dividend income Income from dealing in foreign currencies Gain on sale and redemption of securities Unrealized gain / (Loss) on revaluation of investments classified as held for trading Other income Total nonmarkup/interest income NON MARKUP/INTEREST EXP. Administrative expenses Provision against lending to financial institutions Provision against off balance sheet items Other charges Total nonmarkup/interest expenses Extra ordinary/unusual items PROFIT /(loss)BEFORE TAXATION Taxation current Prior years Deferred PROFIT/ (loss) AFTER 174,774 347,973 (2,157,119) (4,029,277) 78,491 (4,383,406) (10,069,005) 522,747 (6,186,396) (14,373,920) (16,832,906) 207,600 1,052,000 (8,033,001) (10,059,505) (6,186,396) 4,855,569 170,700 (19,921) 250,772 4,454,018 3,029,171 2,924,734 205 3,711,281 1,605 4,167,934 (244,111) 740,000 794 114,700 37,950 2,293,584 3,954,066 1,121 10,101 292 3,426,329 3,028,377 2,799,933 2,255,342 494,103 1,989,708 473,055 1,883,333 2,218,749 4,182,826 (1,193) 518,553 526,185 547,635 5,436,761 (5,383) 18,020 330,025 293,303 (124,238) 733,787 286,375 160,089 402,779 134,488 247,570 324,328 2,039,535 920,943 2,020,896 1,812,870 377,233

TAXATION Accumulated loss/ unappropriated profit Brought Forward Transfer to statuary reserve Transfer from surplus on revaluation of fixed assets - net of tax Accumulated loss carried forward Profit available for appropriation Basic Earnings/ (loss) per share Rupees Figure 2-income statement of last five year 0.66 (7.62) (19.04) (19.02) 10.53 7,686,845 (14,067,814) (14,352,989) (261,834) 2,400,819 6,770 7,127 7,502 5,572 5,866 (69,595) 2,894,000 (1,057,595) (14,352,989) (10,330,839) (7,658,686) 3,452,842 3,226,961

ACCOUNTS OPENING DEPARTMENT

Saving /PLS Account In Pakistan (PLS) saving account was introduces in January 1982. Individuals who wish to invest their money in order to get profit maintain these accounts. Features:

The minimum balance requirement for opening the account is Rs5000. There can be profit or loss on the investment of the customers fund deposited with the bank and this amount shall be acceptable to the customer. The profit is paid half yearly.

Deduction of zakat

Withholding tax on profit @ 10 %.

No service charges to close the account.

Service charges for maintaining minimum balance Rs50.

Online charges Rs.150

Basic Banking Account Basic Banking Account is BAL. The minimum amount deposit in this account is very small as compared to other accounts.

Features:-

Minimum Deposit amount is Rs1000.

1st two transactions are free of cost

Bank can close the Account after six month if balance is zero.

Current Deposits Account No profit is paid on CD A/C companies and firms are rusticated to cause to open CD A/C because of their frequently withdrawals A/C decreases the liquidity of bank.

Royal Profit Account Royal profit is also in BAL and it is not the most common account. Royal profit has some feature.

Features:-

The minimum balance requirement for opening the account is Rs.50,000/.

Profit on Monthly Basis

Higher the amount higher the profit

Deduction of Zakat and withholding Tax

No services charges on minimum balance requirement but no profit for that month.

No charges to close to account

TERM DEPOSIT ACCOUNT A term deposit is a deposit that is made of a certain period of time. At the end of specific period the customer is allowed to with draw the principal amount.

Features:-

Fixed Profit

The longer the period for which the amount is kept higher is rate of interest.

Term Deposit usually for the period of three months, One year and five years.

Deduction of Zakat and withholding Tax @ 10%

TYPES OF ACCOUNTS.

1.

Accounts of General Customers

a) Minor Account. b) Illiterate Person Account. c) Joint Account.

2. Accounts of Special Customers

a) b) c) d) e) f) g)

Individual Account. Proprietorship Account. Partnership Account. Limited Company Account. Account of Club Societies and Association. Agents Account. Trust Account.

Minor Account.

Account opening procedure: The natural guardian who signs both Account Opening form and specimen signature Card can open account in the name of minor.

Title of Account: The title of account should clearly indicate both the names of minor as well as guardian in the following manners:

eg. Imran Rafique (minor) Muhammad Rafique (Guardian)

Special Instructions:

The guardian will continue to operate the account even if minor attain the age of majority.

Documents:

a) Computerized national Identity card of guardian b) From B OF minor c) In case guardian is appointed by the court of law then attested copy of guardianship certificate be obtained and placed on record. Illiterate Person/Photo Account: Before opening such account the illiterate person should be informed that he/she cannot issue Cheque in favor of any other person.

Account Opening Procedure:

Title of Account:

Special Instructions:

Personal Withdrawals only.

Documents:

a) Copy of Computerized National Identity Card b) Two attested photographs to be obtained for
specimen signature Card. c) Thumb impression. Male--------Left Hand Thumb Impression Female-----Right Hand Thumb Impression

pasting on AOF and other on

Joint Account These are the account of two or more persons who are neither partners nor trustees.

Accounts Opening Procedure:

Title of account:-

Title of account holder should mention the names of all the joint account holders.

Special Instruction:

At the of opening the account clear and specific instructions should be obtained regarding operation of the account and the balance at the death of one or more joint account holders in the following manners.

The account can be operate by:

Any joint account holders singly or Any two or more joint account holders or Any of two or more survivors jointly or All the joint account holders jointly or All the survivors jointly.

These instructions as far as possible should be obtained in handwriting of the parties concerned, under the signature of all the joint account holders.

Documents: a. Computerized national identity Card of all the joint account holder.

Mode of signature:

a. All joint account holders are required to sign as applicant and the column of special instructions.

b. Specimen signature of only those joint account holders are required who are authorized to operate the account.

Individual Account: When a single man or woman opens an account in his or her own name and has the right to operate, it is called individual A/C.

Account Opening Procedure:-

Title of Account

Title of account should mention the name of the person who operates the account.

Special Instructions:-

At the time of opening the account clear and specific instructions should be obtained regarding the nominee of the account holder means after the death of the account holder who will operate the account.

Documents: a) Computerized national Identity Card. b) Proof of income if he /she is a salaried person then he pay slip or salary certificate of that person. Proprietorship Account When the owner of the firm operating singly, pen an account in his firm name.

Account Opening Procedure:

Title of Account:

Title of account must be in the name of the proprietorship concern.

Special Instructions:

In case of proprietorship concern, the special instruction should cover the style of the account and the name of the person who will operate the account as sole proprietor .for example, f the account to open is in the name of Islamabad cloth store the person who is the sole proprietor should declare as such

Documents:-

a) b) c) d) e)

Computerized National Identity Card (CNIC) of proprietor. Declaration for proprietorship concern Proprietorship stamp Letter of request to op en the account on the letterhead of proprietorship. Third party Mandate, in case any other person has been authorized by the proprietor to operate the account. f) National Tax number (NTN) but it is optional. Partnership Account: Partnership is a relationship between persons who have agreed to share profits of a business carried on by all or any of them acting for all.

Account Opening Procedure:

Title of Account:

Title of account must be in the firm as declared by the partners.

Operational Instructions:

Operations on the account must be allowed strictly in accordance with the instruction given in partnership mandate and declaration (Part III) In terms of section 25 of Partnership Act 1932 according to partnership deed, if given.

Documents:

a) b) c) d) e) f) g)

Copy of Computerized National Identity Card of all the partners. Copy of registration certificates (if a registered firm) Letter of request to open the account on the letter of head partnership. Partnership Stamp. Partnership Deed. Third Party Mandate, if third party is authorized to operate the account. NTN (optional).

Limited Companies Account: Section 2 of the companies Act1913, define companies as: An association of individuals for the purpose of profit, possessing a common capital contributed by the members constituting it, such capital being commonly divided into shares; of which each possess one or more and which are transferable by the owners.

Title of Account:

Title of account should be exactly in the same name and style as mentioned on the memorandum and article of association.

Special Instruction:

All the special instructions should be given to the bank in the form of Resolution of Board of Director.

Documents:

a) Computerized National Identity Card (CNIC) the Director attested by company CEO b) Resolution of Board of Director passed under Companys seal to open account. c) Memorandum and Article of Association.

d) Certificate of Incorporation Form 29 (B) (LATEST COPY). Company secretary will certify all these copies. e) List of directors and authorized signatories. f) Certificate of commencement of business (for Public Limited Companys only).

Account of Club Societies And Association:

Account Opening Procedure:

Title of account:

Account must be opened in the name of organization in the following manner:

e.g. Islamabad Cricket Association

Operational Instructions:

a) All the parties must be in accordance with the clauses of the resolution. In case of death of officer bearer, account should be blocked until new resolution is received. b) Copy of bye-laws /regulation Like of members of managing/executive committee. c) Copy of certificate of registration(if registered) d) Copies of CNIC are of the members of Executive Committee. e) List of names of official authorized to sign on behalf of the organization along with the specimen signature under the signature of the secretary of the club/society.

Agent Account:-

Account Opening Procedure:-

Title of Account: Account must be opened in the name of agent.

Special Instructions:

a) Manager should ensure compliance of contract between principle and agent. b) Agent cannot delegate powers to third party. c) Transfer between principle and agent account should be in accordance to agreement. d) In case of death /insolvency /insanity of principle agency transaction are automatically terminated. Documents:-

a) Attested photocopy of Computerized National Identity Card (CNIC) of the agent. b) Certified copy of power of attorney.

Procedure for opening of Account.

The account opening form:When a client comes to the bank, and makes a request for opening of A/C. The officers says that first fill up a prescribed application form.

Completion of the Form:-

The name, occupation, and complete address of the person opening the account are written in the columns that are provided in the form. Signatures are obtained forms the customer where it is required .These signatures should be usual signature stamp he would operate the account with them Introduction:The introduction of a current account holder is accepted for the opening of either a current account or a saving account. The introduction should be Account Holder introducing is obtained at the place provided for in the account opening form

Specimen Signature Card, Cheques books Requistion, online Form:The signatures of the client are obtained on a specimen Signature card Cheque book requisition and online form .these specimen signature cards are obtained in duplicate with two signatures on each card form the customer .every time a Cheque is received for a payment from the client, the signature on the cheque are verified by comparing them with the specimen Signature Card

Signature Difference Form:-

The signature of the client are obtained on a signature difference form if his /her signature in a language other then English.

Account Number: When all the formalities are completed then the final approval of an account has to be taken from the Branch Manager an account number is allotted to the customer all the customer all the information is entered into the computer. Then that account number is written on the cheque book, Specimen signature cards and account opening form. Send the form to Head office:-

After fulfill all the requirement and verify the form from operation manager the account opening form send to head office Karachi and make a request to issue the printed cheque book.

Issuance Of A Cheque Book:-

After opening an A/C with the bank, the A/C holder receive the letter of thanks from Head Office Karachi then after receiving this letter client come to bank and makes a request in the name of bank for the issuance of Cheque Book. The A/C holder mention the title of account, A/C number, signs it properly. Normally Balance issue a cheque book having 25 leaves for saving account and 50 leaves cheque Book to Current Account Holder .every Cheque book also contains one leaf that is issued for another issue of a Cheque book

REMITTANCE DEPARTMENT:-

Meaning of remittances:-

Remittance is transfer of funds from one place to another or from one person to another

A remittance is an important service provided by banks to customers as well as non customers. Since it is not a free service it is a source of income for the bank.

Parties involve in remittances

Four parties involved in remittances:

1. Remitter 2. Remit tee 3. Issuing Bank

4. Paying Bank Remitter:-

One who initiate, or request for a remittance. The remitter comes to the issuing or originating branch, ask for a remittance to be made, and deposits the money to be remitted. The bank charges him a commission for this service. He may or may not be a branchs customer.

Remitee:

A remitee is also called the beneficiary, or the payee .The person in whose name the remittance is made. A remittee is also the one who receive the payment.

Issuing Bank:

The bank that sends or affects the remittance, through demand drafts, telegraphic transfers, or Mail transfers.

Paying Bank:

Paying bank also knows as the drawer branch. The branch on which the instrument is drawn. It has to make the payment (usually located in a different city country).

Kind of remittance:-

1 Transfer within the branch

2 Transfer from one branch to another 3 Transfer from one bank to another bank in the same city 4 Transfer from one bank to another bank in these cities. Instruments used in remittance 1. Demands Drafts (DD) 2. Pay Order (PO) 3. Pay Slip 4. Call Deposit Receipt (CDR) 5. Telegraph Transfer 6. Rupees Traveler Cheque (RTC) 7. Cancellation of PO, DD &CDR 8. Advance Tax against Remittance

Demand draft:-

Demand draft is a negotiable instrument which is drawn by one branch to another branch of the same bank. In cause of agency arrangement demand draft can also be issued by one branch of the bank payable to other branch of the branch of the other banking. DD issued by the BOP payable by UBL.

Demand draft:-

1. Issue of DD against each payment

2. Issue of DD AGAINST Debit of the account

3. The current rate schedule of DD is as follows;-

4. Up to Rs.10, 000 0.02% or RS. 25

5. Which ever is higher

6. RS. 10,001 to RS. 100,000 0.025 OR RS. 40

7. Which ever is higher

8. Rs. 100,001 to RS.10, 00,000 0.010% or RS. 200

9. Which ever is higher

10. RS. 10, 00,001 to RS. 20, 00,000 0.075% or RS. 1000

11. Which ever is higher

12. Above RS. 20, 00,000 0.06% or RS. 2000

13. Which ever is higher

Process of issuance of DD:-

When a customer request BOP to provide him a DD made on his account or against cash payment for a particular city like Islamabad.

Then after having a total amount including commission demand draft is issued in favor of the specified person in that city and is drawn on BOP Islamabad branch.

So, when payee in any bank presents this demand draft it constituted the inward clearing of BOP Islamabad branch.

When BOP receives the demand draft then it passes the followings entry:-

Entries:-

Dr .Head office account with treasury

Cr .Demand draft payable Account

Entry when bank issue demand draft

Dr. Customer Account

Cr transit Account

Then:-

Dr. Transit Account

Cr. Head Office Account with treasury

At the end of day the transit account will be zero

Entry of commission that BOP received from customer:-

Dr. Customer Account

Cr. Commission on Remittance account

Entry of Excise duty recovered account

Pay order:-

Pay order is a negotiable instrument made by the bank on account of the customer to pay on order the specific amount to the directed person.

Use of pay order:-

Pay order are used to make payment or to transfer money with in the same city. Pay order is always drawn on the bank that has issued it. The main advantage of pay order is that it cannot be dishonored by the bank. Pay order can be endorsed if it is not crossed. The payee may present pay order for payment either over the counter for cash payment or the payee may transfer credit to his account.

CLEARING DEPARTMENT

Clearing Process:I worked in clearing department for one week. I learnt there about different kinds of clearing. I was told there the main objective of the clearing. i was told in this department about the different types of clearing in

which THE bank of Punjab deals and about there stamping. The bank of Punjab Deals in the following types of clearing: Normal/ Local clearing Same day Clearing Intercity clearing Outward bill of collection(OBC)

The Bank Of Punjab charge fee against the Same day clearing and against the cheques which are dishonored. During the work in clearing department I also learn the different types of stamps for clearing

Stamps for Normal Clearing Crossing stamp at the face of cheque. Clearing stamp of the next working day at the face of the cheque. Discharge stamp at the back of the cheque with officer signature.

Stamps For Same Day Clearing Crossing stamp at the face of cheque. Clearing stamp of the next working day at the face of the cheque. Discharge stamp at the back of the cheque with officer signature Same Day Clearing Stamp at the face of the cheque.

Stamps for Intercity Clearing Crossing stamp at the face of cheque. Clearing stamp of the next working day at the face of the cheque. Discharge stamp at the back of the cheque with officer signature Intercity Clearing Stamp at the face of the cheque.

Stamps for outward bills of collection Crossing stamp at the face of cheque. Clearing stamp of the next working day at the face of the cheque. Discharge stamp at the back of the cheque with officer signature

If the cheque In favor of the BANK OF PUNJAB branch outside the Lahore city then this cheque will not sent in intercity clearing. This cheque will directly cash. Stamping for this is as same as for others. In the clearing department I also observe the different types of crossing. i.e. Simple crossing

In simple crossing these two lines are drawn on the Left top corner of the cheque. It means amount can be transferred in any persons account. Payees account only crossing Payees account only

In this type of crossing two parallel line are drawn on the left top corner of the cheque and payees account only is written between these lines. these types of cheques can only transferred into mentioned persons account only. These cheques can be transferred into any other A/c only when the issuer cancelled the stamp Simple crossing and co & co.

Two parallel lines are drawn on the left top corner of the cheque with the addition of the word & co. Theses types of cheques can be transfer into any person account after endorsement. The person who endorses the cheque will sign on the back of cheque. The person whose name the cheque is endorsed will write on the back of cheque and will verify the signatures. Some times not negotiable is written on some cheques it means amount can transfer only into the mentioned persons account. These cheques are not transferable in other persons account

5. National institutional Facilitation Authority:-

After putting these three stamps on cheque & other negotiable instrument, they are sent to NIFT,. NIFT after segregation the cheque of different banks delivers them to their concerned banks.

6. Send Repot To The Bank:After delivering the cheque to different banks NIFT send repot to BOP Lahore, then the banks staff tally the amount of that repot for its own record.

7. Delivered Cheque To Respective Bank:Next morning these cheques are delivered to the respective banks between the 9:00 to 9:30. in the same manner other banks present their clearing drawn on BOP. Total number of cheques and their amount delivered to other banks and received from them are written on the Clearing House schedule branch for their payment. After proper security of cheques, verification of signatures and confirmation of balance in the account, the Officer Clearing Department Debit the customer Account. If any cheque is not passed due to insufficient balance or any other reason, Officer Cash Department returns the same cheque by attaching a cheque return memo containing reason for return.

8. Credit The Customer Account:If the cheques are clear then the BOP Lahore credits the customer account. If the bank receives the outward return due to any reason then this cheque is entered into the cheque returned register and bank charges are deducted according to the schedule of charges.

Then send the outward and return inward as IBDA (inter branch Debit Advise) to Main Branch. And it sends outward return and inward to BOP Lahore.

Kinds of Crossing:-

Legally there are two kinds of crossing

1. General Crossing 2. Special Crossing General Crossing:-

In cause of General Crossing the payment can only be deposited into the payees account.

Special Crossing:-

In cause of Special Crossing the payment can only be made to bank named therein the cheque.

Cheque Encashment Procedure:-

Cheque Encashment Procedure are made in four steps, these are:-

1. Receiving of Cheque 2. Verification of Signature 3. Computer Terminal Process 4. Payment of Cash

1. Receiving of Cheque:-

The cash is paid against the cheque of client. The following points are important.

1. cheque is drawn on BOP 2. Cheque is not posy dated

2. Amount in words and figure are same 3. it should be a bearer cheque so the word bearer should not cross 2. Verification of signature:After receiving the cheque the officer verify the signature of the account holder and the signature on the cheque. If the signature is not same it is returned back otherwise forward to computer terminal. Computer terminal Process:The cheque is receive in computer terminal, where the computer operator checks the balance of the account holder,. The operators also see the stop payment. Instructions are received from the account holder or not. After considering these points computer operator post the cheque in account holder ledger and returned back to the officer 3. Payment of Cash:After posting the cheque the officer cancelled the cheque and returned back to cashier. The cashier enters the cheque in cash paid registered and pays against the second signature of receiver on the back of the cheque If the payment is Rs. 50000 the cashier can make it on its own. If the amount is greater than Rs 50000 to Rs. 100,000 the cashier and cash deposit in charge will sign it. Then the payment will be made. But if the amount is greater than Rs.100000 to Rs.1000, 000 the manager operation will also verify the check and sign it so that the payment can be made. If the amount is greater than Rs. 1000,000 the Branch Manager will also verify the check and sign it. Otherwise the payment will not be made. TRADE FINANCE DEPARTMENT:-

Trade Finance involves the import and export activities. This department provides protection to the rights of importer and exporter. The function of this department is to serve as a bridge between the importer and exporter in order to settle a transaction.

Trade finance Department handles two activities:-

1. Import

2. Export

IMPORT:-

Import Department of BOP deals with the import of merchandise. Import can be defined as:-

The bringing of commodities into Pakistan from outside by sea land or air.

Requirement for the importer:-

These requirement/ document must be fulfilled from importer before doing he import:-

1. NTN 2. Sale Registration Certificate 3. Membership from Chamber of Commerce Method of Doing Import:-

1. Letter of Credit(LC) 2. Registration Counter(RC) 3. advance Payment 4. Open Account Letter Of Credit (LC):-

A letter of credit is a financial instrument issued by a bank on behalf of the registered customers it gives surety to the Exporter that his account is safe.

The letter of credit is a written instrument issued by a buyers bank authorizing the seller to draw in accordance with certain terms and conditions.

Parties involve in a Letter of Credit:-

There are four basic parties involved

1. Importer

2. Issuing banker

3. Exporter (Beneficiary)

4. Advancing Bank

Registered Contract (RC)

These are the contract on which there is no liability of the bank. Bank charge commission against the service.

Main Reason of Bank evolvement.

Bank involve in contract for that purpose.

The record of this foreign exchange entered in State Bank of Pakistan.

Advance Payment:-

In mean some part of payment is made before shipment and remaining is made after shipment. Advance Payment is through TT (Telegraphic Transfer). But State Bank of Pakistan allows limit of Rs.10, 000 it means that Advance Payment does not exceeds Rs. 10,000.

In cause of Advance Payment the importer show the document to BOP after four months as a proof of import.

Open Account:-

Open Account is reciprocal of Advance Payment. In this cause importer first receives the shipment and then makes the payment. And there is no limit involved in open Account. Importer makes payment of any amount.

In open Account there is no as such restriction from State Bank of Pakistan (SBP) importer simply show the document and make payment after one year means no restriction of time is involved.

In all these four methods Letter of Credit is mostly used in BOP Lahore.

Requirement of Opening a Letter of Credit:-

For opening L/C the importer has to submit the following documents

1. Performa invoice

2. Indent

3. Application for Importer

4. Annexure B

5. Insurance of consignment

6. Promissory Note

7. L/C Margin

8. L/C Commission

Import Process:-

1. An L/C FORM FIELD.

2. The customer prepares insurance document from any insurance company.

3. Filled the SBP application from that is called appendix B.

4. Performa invoice is prepared.

5. Undertaking from the customer on letter head.

6. Prepare four copies of Form1 (Form I example the detail of import that are helpful for the SBP.

7. Approval from Area office

8. Prepare voucher and make entries in the system

9. Preparation of L/C

10. These forms are then sent to swift centre of BAL.

These forms are then sent to the swift centre of BPL.

Swift Centre Machine:-

It is the faster and safest mode of financial communication in the world. These are according to the rules and regulation of UCP-500 just like prudential regulations of SBP.

1. Now this is received by the exporters bank.

2. When BOP receives shipment documents and documents are either rejected or accepted within 7 days.

3. If accepted the payment from the importer is made.

4. AN IBCA is received of that account and send to the exporters bank

5. Now during these transactions both the bank receives profit in the form of commission.

BOP strictly receives commission/ charges from the importer.

Conversion of foreign currency into Pakistan rupees.

6. Payment against Document (PAD)

In cause the payment is not made then an account of PAD is opened. The bank the issuing bank on the customers behalf of the letter of credit, pays the negotiating or advancing bank, and debit the PAD account, till its payment by customer. Until the realization of the amount a full set of documents representing title to the goods shipped by the foreign exporter, is held by the bank as security.

Dr. Payment against Document (PAD)

Cr. Bank Current Accounts

When the importer brings payment then

Dr. Current Account

Cr. Payment against Documents (PAD)

EXPORTS:-

Exports are major source of earning foreign exchange and play an important role in the economic development of the country. It helps to utilize excess resources of the country.

Exports mean selling goods to another country.

Export of all eligible commodities through authorized banking channels are admissible under exchange control regulation.

Requirement for the exports:-

These requirement/ document must be fulfilled from exporter before doing the export:-

1. NTN

2. Sale registration Certificate

3. Membership from Chamber Of Commerce

As well as the market stability. Reputation, financial position of the exporter is first of all checked

Document to Be Attached For Export:-

1. Commercial Invoice

2. Bill of Landing

3 Packing List

Total quantity

Net weight/carton

Gross weight/ carton

Total net weight/carton

Total gross weight

4. Bill of Exchange (original or draft)

5. E-form: initial document on which total export proceeding is based. In this form, all the condition are given, which are necessary for export.

6. Letter of Credit: it is written agreement between importer and exporter.

7. Certificate of Origin (Form- A)

8. Insurance 9if any)

Procedure:-

1. Receipt of Letter of Credit 2. Issuance of E-Forms that is verified by an authorized signatory. These are four copies of it. Copies of E-Form:-

i. ii. iii. iv.

original: is sent to the custom officer Duplicate: Bank receive the duplicate Triplicate: is sent to State Bank of Pakistan Quadruplicate: is kept by the exporter for his personal record.

v.Verification of E- Form

vi. Exports document

vii. Scrutiny of the documents

viii. Dispatch

ix. Realization of export proceeds. First week Duties

In my first week in Bank of the Punjab, they assigned me work in Account Opening Department. Miss Noreen trained me very nicely and I learned lot of things in this department. He told me different accounts names and their codes. How to open the account? New Computerized national identity card is must for opening of new account. For current account 10,000 and for saving 5,000 are required. What are the necessary requirements of different accounts to be opened? Other activities are How to fill the deposit Slip if anyone wants to transfer cash in the account or online transfer How to fill the different accounts Form How to fill the voucher for issuing of the Cheque Book for the first time

How to fill the requisition slip for the second time issuance How to issue the Cheque Book How to enter it in the register What are the procedures for the ATM card Accomplishments I m fully trained in this job how to open the different accounts ,how to issue the cheque book and enter it in the register and how to transfer the amount through cash or cheque to an account and how to issue a Debit Card.

Second Week and 2 days

In the Second Week and two days they assigned me work in Clearing Department. Mr. Irfan shehzad and Mr yousaf trained me very nicely and I learned lot of things in this department . Duties There are two types of clearing. 1. I/W (Inward clearing) 2. O/W (Outward clearing

In this week I entered the cheques lodged for inward clearing in clearing register as their cheque number account holder name, cheque amount and bank name amount to be paid. Secondly in this week I prepared (O/W) clearing for next day. Same as entered cheque number account holder name amount and Bank name. In this week I also entered cheque return in cheque return register and put cheque return slip on cheque . I perform following tasks relating to the banking system. 1. IBC (Inter bills clearing) 2. OBC In this week I worked for IBC (Inter bills clearing). IBC mean cheques lodged for clearing from other city. I entered these cheques in IBC register if it is BOP cheque then Mr. Irfan cleared or return this cheque and if it is cheque of other bank then it is again entered in O/W clearing registered and lodged next day for clearing. Secondly in this week I prepared OBC, filling of OBC slip as cheque number their amount OBC number and branch name. Accomplishments I am fully trained now in this particular job. How to fill cheque return slip? How to enter in I/W ,O/W clearing register. In this week I repeatedly performed this job and now I am fully trained in this job.

1 day in remittances

They assign me order preparation. Duties

work

for

Remittances

Demand

draft

a nd

Pay

Demand draft is for payment outside of city and pay order for local payment. It is a secure source of payment. There are no charges for Pay order while other banks charge for this service so it is an advantage going to BOP bank to attract customers. Accomplishments In this week I repeatedly perform the jobs and I am fully trained in s u c h t y p e o f operations i.e. to make the DD,Pay order and mark the Charges if Customer is not account holder of the Bank then 255 Rs commission of the Bank. 1 day in Credit department Credit department issued loans against some security and mark up specified by the state bank of Pakistan. Credit department calculates the mark up rate on finance and prepare the schedule for repayment of clients. The minimum and maximum value of mark up. Depends upon the negotiations skills of credit officer, market competitions as well as the financial health of client. Types of mark up rate TPMR Timely payment mark up rate is applicable in case of timely payment by the party and calculated on the basis of floor rate of the bank plus average six month KIBOR rate SMR Standard mark up rate is applicable in case of delayed re payments to adhere schedule of repayments. TPMR SMR

Types of consumer Finance scheme

BOP launch following four types of consumer Finance schemes to provide best services to its customers by keeping term and conditions to ease to cater the need of its customers.

Aasaish loan Quick cash Car loan House loan Smart cash personal loan Bop motorcycle loan

Fourth Week Duties In this week I worked Cash Department. In week they assign me work in cash department. In cash department I learned about Receipts and Payments and about how to receipt cash and how to enter it in computer. In the days of near eid they give me a work to enter a NIC copy number , name of person and how much copies of new currency given to a person in all this week i done this work. Accomplishments I am fully trained in this job i.e. to check that all the vouchers are scrutinized and matched with the activity There problems are also called as an internal problems. So these are discussing below.

Conclusion The Bank has recovered much faster after a major shock, now it is traveling on t h e road of success with a steady pace. It is contributing a lot t o w a r d s t h e i n d u s t r i a l development and mid tier segment of the P a k i s t a n s e c o n o m y . A s i d e f r o m t h e g e n e r a l banking, the development of the agriculture sector of Pakistan is a phenomenal objective which no other financial institution has yet achieved with such success.

The Bank of Punjab has always strived to remain in the line of leading banks and has consistently shows steady growth in every aspect of its solutions. The vision and mission of the Bank of Punjab are true image of its existence

Recommendations BOP top management should have to revise the formalities in order to facilitate the customers. The charge on different services should be revised to compete the market. The IT facilities should be improved. The ATM machine has to be replaced as early as possible In the branch staff workshops should be organised for technical knowledge. The management has to take serious steps to recover the loans. The pressure of work and shortage of time creates negative effects; BPOs management should provide adequate facilities and allocate sufficient staff according to the requirements of each branch. Bop should launch bank cheque books to attract the customers.

1. Lack of communication among the employees : During the period of my internship I found this problem as a biggest problem that, they are not very effective in communication between themselves. They do not share the experience with each other and do not care the other employee. If one employee has a problem, then he asked to other, but he does not give clear solution to that problems. They are shows the facial expressions against each other. They a r e t a l k a g a i n s t e a c h o t h e r i n f r o n t o f m e . S o f i n a l l y i t i s v e r y n e e d y f o r a p u b l i c services organization to keep atmosphere friendly among the management and employees. 2. Lack of computing skills: Computing skills are also low, some executive are very efficient in computing skills but some are not totally aware from this system. For example ATM machine at this branch is only handled to Mr. Amir anjum . When operation he is on leave branch faces problems about ATM machine. 3.Miss use of resources:

Resource are very needy, so there must be avoid to misuse the resources but in this branch it is reverse case, there is very wrong use of the resources, employees does not take care of resources and not used them in right direction. For example every person misuse telephone service even guards they use it for personal matters. 4. Technology is less In bop technology is very bad and its comes very slowly. For example if light is gone they have not efficient ups who control the burden of office equipments and all the systems are of due to electricity problems.

NEW KNOWLEDGE ACQUIRED During the internship there is practical knowledge acquired about the banking sector. What activities are performed by banks and how to d e a l w i t h p u b l i c ? A l s o commitment about work and operations of banks. Financing and credits and other public services are performed by the banks. What are implementations of banking rules in banking sector? And much learn about the various executives experiences and their skills. What is role of higher authority (manager) in decision making and how to solve the problems? How much money or reserves are used to meet the requirements in the branch. What are the du ties of operation manager and how to pay cheques and all procedure relating to opening account in the banks?