Zarai Taraqiati Bank Limited

EXECUTIVE SUMMARY

I did my internship at ZTBL Rahim Yar Khan. The objective of my internship was
learned about the professional life as well business operations of the organization.
My report is consisting on six main chapters. These six chapters are further sub
divided. The first chapter of my internship report consists on the brief history of
ZTBL. And also its vision, mission, values. The other many basic contents about
ZTBL are also mentioned in the first chapter. The second and third chapter of my
report is consisting on the SWOT analysis and the structure of the organization.
SWOT analysis is important for any organization so thats all stated in the first
section.
The fourth chapter of my report is consisting on strategies of the organizations. In my
chapter I explain only two types of strategies marketing and competitive strategies.
And also analyzed tease strategies in accordance with my branch. The fifth chapter
of my report describes business operation of ZTBL. I described the business
operations and also analyzed the business operations of ZTBL. The sixth chapter of
my report is about my leanings during internship. Sixth chapter of my report is further
subdivided. In this chapter I described my duties and my accomplishments during my
internship. And the end of this report I described the problems that I face and my
experience of internship.
 Zarai Taraqiati Bank Limited

TABEL OF CONTENTS

EXECUTIVE SUMMARY....................................................................1

CHAPTER NO 1.................................................................................................................................... 3
1.1 HISTORY AND BACKGROUND OF ON ZTBL..........................................................................3
1.2 VISION, MISSION & VALUES.................................................................................................... 4
1.3 OVERVEIW OF ZTBL................................................................................................................. 5
1.6 BOARD OF DIRECTORS:.......................................................................................................... 6
CHAPTER NO 2.................................................................................................................................... 7
2.1 ORGANIZATIONAL CHART....................................................................................................... 7
2.2 BRANCH ORGANIZATION STRUCTURE.................................................................................8
CHAPTER NO 3.................................................................................................................................... 9
3.1SWOT ANALYSIS:....................................................................................................................... 9
3.1.1 STRENGTHS..................................................................................................................... 10
3.1.2 WEAKNESSES.................................................................................................................. 11
3.1.4 THREATS.......................................................................................................................... 13
CHAPTER NO 4.................................................................................................................................. 14
4.1 COMPATITVE STRATEGY:.......................................................................................................... 14
4.3 Services Offered By Ztbl:........................................................................................................ 15
4.4 PRODUCTS:................................................................................................................................. 15
4.5 MARKETING STRATEGY......................................................................................................... 16
CHAPTER NO 5.................................................................................................................................. 17
5.1 BUSINEES PROCESS OF ZTBL:............................................................................................ 17
5.2 Account Opening and Cash Department...............................................................................21
5.3 Account Opening Procedure.................................................................................................. 21
5.4 Cheque Books:........................................................................................................................ 24
5.5 Daily Posting of Vouchers In The Books Of Accounts:........................................................25
5.6 It Department:.......................................................................................................................... 25
CHAPTER NO 6.................................................................................................................................. 27
6.1 LEARNING AS AN INTERNEE:................................................................................................ 27
6.2 New Knowledge Acquired....................................................................................................... 30
6.4 HOW EXPERIENCE IMPACTS MY CAREER:.........................................................................32
 Zarai Taraqiati Bank Limited

CHAPTER NO 1

1.1 HISTORY AND BACKGROUND OF ON ZTBL

Zarai Taraqiati Bank Limited (ZTBL) erstwhile agriculture development bank of
Pakistan (ADBP) is the primer financial institutions geared towards the development
of agriculture through provision of financial service technical know how. The
restructuring of farmer ADBP is being carried out with the aim to up lift the agriculture
and rural sector by raising farm productivity, streamlining community. ZTBL was
incorporated as a public Limited company on 14 th December, 2002 through repeal of
ADBP Ordinance of 1961.
The corporate structure redefines the bank status as a public limited company
registered under companys ordinance under1984 with an independent Board of
Directors which aims at ensuring good governance, autonomy delivering high quality.
ZTBL is a key R.F.I of Pakistan providing affordable, rural and agriculture
financial/non-financial service to the rural of Pakistan, comprising 68% of the total
population. The bank through a country wide network of 341 branches is serving
around half a million clients annually and one million accumulated account holders
with average loan size of around Rs.89, 000 serving 65%, 31% and 4% of
subsidence, economic and large growers respectively.
The total assets of the Bank stands at Rs.84 billion with the authorized capital of
Rs.25 billion as on 31.12.2005, with a nation wide working strength comprises 55
hundred employees. The share of ZTBL in the total national institutional agricultural
credit remains around 35%.
ZTBL was in-corporate as a Public Limited Company on 14th December, 2002
through repeal of Agricultural Development Bank of Pakistan Ordinance of 1961. 1

1
 Zarai Taraqiati Bank Limited

1.2 VISION, MISSION & VALUES

Vision
Dedicated to serve the needs of farmers community, by deliver the financial
products and the technical services on the competitive and sustainable basis,
in the convenient, of efficient and professional manners, leading to success of
the Bank and the farmers 2

Mission
To play the effective role in the promotion of economic growth, by enhancing
the availability of credit to the agriculture sector, through reliable access to
sustainability financing, special lendings programs, technical assistance, and
other products & services, to promote the career development opportunities
3
for increasing the professionalism and technical proficiencies of employees

Core Values

Integrity
Excellence in service
High performance

Innovation and growth4

2
3
4
 Zarai Taraqiati Bank Limited

1.3 OVERVEIW OF ZTBL

General Information
The bank formally ADBP was established in 1961 through an Ordinance by merger
of the then ADFC and ADB. ZTBL was incorporated Reasons for low yield in
agriculture sector lack of operational funds for Agri experts & research institutes.
Weak marketing mechanism for all the inputs and outputs of agriculture ineffective
cooperative structure in adequacy of effective structure less interest in inter cropping
and multiple cropping poor extension services weak research extension & education
linkage.
Poor risk bearing ability & managerial capability scarcity of irrigation water logging
and salinity small farm size fragmentation of holdings low organic matter in soil
nitrogen and phosphorous deficiencies in soil lack of technical know how poor
cultural practices
1.5 ZTBL IMAGE BUILDING

PUBLIC DEALING

ATTITUDE Islamic Ideology, rights and obligation as a human

being

CONDUCT Good moral character, code of Ethics, INTEGRITY

Humanity.

BEHAVIOUR civilized, positive, kid hearted, polite, courteous,

helpful, cooperative.

CUSTOMER SERVICES enquires/ information courteous, display of sign

boards, visitors book, complaint box,, drinking
water, seating arrangements redresser of
complaints
 Zarai Taraqiati Bank Limited

PROFESSIONALISM Knowledge of rules and regulations, polices,

procedures, agriculture practices, dictation and
comment, organizational interest, objectivity, loyalty and
faithfulness.5

1.6 BOARD OF DIRECTORS:

Following are the names of the Chairman, Chief executive officer, and Board of
Directors of ZTBL:

CHAIRMAN:
Mr. Syed Yawar Ali
CEO:
Mr. Mr. Syed Talat Mehmood
DIRECTORS:
Mr. Syed Yawar Ali
Mr. Syed Talat Mehmood
Mr. Saeed Ahmed
Mr.Majyd Aziz Balagamwala
Mr.Zia-ul-Mustafa Awan
Mr. Zahid Idris Mufti
Mr.Abdul Bari Tareen
Mohammad Tanvir Butt
Mr.Abdul Ghafoor Mirza
Mr.Muazam Ali

5
 Zarai Taraqiati Bank Limited

CHAPTER NO 2

2.1 ORGANIZATIONAL CHART

CHAIRMAN

CEO

Senior Executive Vice

President

Senior Vice President

Executive Vice President

Assistant Vice President

Grade-1 Grade-2 Grade-3

Non Clerical
Staff
 Zarai Taraqiati Bank Limited

2.2 BRANCH ORGANIZATION STRUCTURE

Branch Manager

Customer Service
Manager

MTO (Acct MTO Cash MTO (Clearing MTO (CD

opening Book Officer Officer) In charge)
Officer)

Cashier Teller
 Zarai Taraqiati Bank Limited

CHAPTER NO 3

3.1SWOT ANALYSIS:
SWOT stands for
Strengths
Weaknesses
Opportunities
Threats
Overview of the Institution
Zarai Taraqiati Bank Limited (ZTBL), formerly, Agricultural Development Bank of
Pakistan (ADBP), was formed through the repeal of ADB Ordinance 1961. ADBP
was established following the merger of Agricultural Development Finance
Corporation and Agricultural Bank of Pakistan. ZTBL took over all assets, business,
contracts and liabilities of ADBP and started its countrywide operations as a public
limited banking company on December 14, 2002. The bank has the express
mandate to provide finance and credit facilities to small farmers and low-income
households.
Financial Analysis
The banks balance sheet footing increased to Rs.102.3b (FY07: Rs. 93.4b) as at
December 31 2008. The growth is largely manifested in both advances portfolio and
balances with other banks while investment portfolio declined to Rs. 5.1b (FY07:
Rs.7.6b) on account of maturing cOIs that were subsequently channeled towards the
aforesaid avenues.
 Zarai Taraqiati Bank Limited

3.1.1 STRENGTHS
Govt. Supports.
The first most important strength of this bank is Government. as a major share
holder to this bank. The bank enjoys sovereign guarantee of the federal government
that covers its debt obligations to State Bank of Pakistan (SBP) and ensures safety
of deposits under the Banks (Nationalization) Act 1974.
Strong Reputation in Agriculture Finance Market
The bank has strong reputation in case of large product portfolio with low mark ups
with compare to other financial institutes and also to facilitate the poor farmer to earn
from his limited resources.
Countrywide Coverage
The other most important strength is a great market cover by this bank with help of
its mobile credit officers. And also the new markets which it can grasp by introducing
it are under processing projects.
Mobile Credit Officers
Gross root level contact with farmers through mobile credit officers in order to
implement its all the purposed plans effectively and efficiently is also a great
strength of Zarai Taraqiati Bank Ltd.
Large Product Portfolio
The main and crucial strength of this bank is a greatly diversified portfolio of its
products in order to facilitate the agriculture sector of the country and to develop the
agriculture base industry of the country.
Simplicity of Operating System
The requirements for loan sanctioning and processing are very simple and
understandable by the uneducated farmers. Thus make it easy to them to work with
the bank on continual basis.
Low Mark Up & Loan Processing Fee
It is the core strength of ZTBL to have low mark up and loan processing fee
capsulated by the Govt. and the State Bank of Pakistan. The GOP has imposed a
cap on lending that requires the bank to charge a maximum markup rate of 8% on
loans against 14% charged previously.
 Zarai Taraqiati Bank Limited

More Then One Loan Facilities

Individuals can avail maximum loan facilities is the basic banking strength of ZTBL
as no other bank is providing a facility in agriculture segment.

3.1.2 WEAKNESSES
Staff Behavior
The behavior of the staff with the customer is very ill. Thats why customer
satisfaction with the bank goes with increasing rate which may become a threat in
future while the main purpose of its privatization is to improve the environment of
bank like public institutes.
Manual Working
Although it is the first organization to introduce IT department in Pakistan but its own
working is mostly manual which a great weakness in its progress is.
Poor Inner Culture
The working environment is not proper which create dissatisfaction not in the
employees but also in the customer thus hinder the banks progress.
Larger Influence of Political Parties
Most of the senior staff is hired through political reference thus exploiting the rights of
other comparatively more educated and competent staff in the organization.
Bribe & Other Ill Moral Values
The cultural evils like bribe, favoritism and nepotism are on the peaks in this bank
which pose the main difficulty in the progress of the bank although with strong capital
structure.
Employee Incentive and Promotion Strategies
Employee incentive and promotion strategies are not good enough in the bank as it
is highly corrupted by political influences. Thats why the deserving is always denied
and non deserving is always granted.
Poor Audit Department
The audit department of the bank is very poor because the employees of that
department have no formal education about audit. If one does not learn how to make
a voucher then how it is possible for that one to check the vouchers analytically.
 Zarai Taraqiati Bank Limited

Uneducated & Less Trained Staff

Not only of audit department but most of the staff in ZTBL is ill trained and less
educated then the seats they have thus limits its working and progress.
Un-secure Loaning
Due to the large political interference and no proper training of staff and other factors
the loans are issued with very low security check and balance and loan recovery is
not up to the mark.
No Proper Publicity
Bank has a large portfolio of products but the customer is unaware about those
products due to the weak marketing practices.
Poor Customer Service Department
Bribe and other social evils and also some banking policies like employee incentive
schemes make the employees to treat in lazy way thus make the performance of this
department low.
3.1.3 OPPORTUNITIES
Indirect Lending Possibility
It has great opportunity for direct lending indirectly i.e. to the small and medium
industry to improve the base of industry.
Expansion Potential
It has great expansion potential both horizontally and vertically. It can increase its
branch network, its product portfolio like start of commercial banking.
Commercial Banking
It can start commercial banking under the same roof in order to strengthen its
financial position and also to grasp non agriculture market.
Awareness Opportunity
If the customer become aware about banks product portfolio and the new researches
under this bank then it become a big opportunity for the bank.
 Zarai Taraqiati Bank Limited

3.1.4 THREATS
COMPETITORS:
The main competitors of ZTBL are BANK AL-FALAH, FAYSAL BANK, KASB BANK,
MCB. Due to tuff competition with these banks ZTBL is forced to sanction loans at
less interest rates, so that to attract the customers. The threat of these competitors is
a very big hurdle in the way of success of ZTBL.
CHARGES BY GOVERNMENT:
Government has increased the taxes and charges on all the services of finance and
banking sector, because of these increased charges ZTBL has to increase the
charges on every service to the customers, which is really affecting the working of
ZTBL and all other banks as well. As a government keeps on revising the taxes on
continuous basis ,which is not at all in the interest of the banking sector.
POLICIES OF ZTBL:
The employees are given promotions on reference basis, which causes frustration
among employees and overall graph of the performance comes down. So ZTBL
should reconsider their policies so that the bank may remain in the race.
Natural Risk with Agricultural Products:
The natural risk associated with the agriculture products is the major threat to the
ZTBL as its whole lending is in agriculture.
Political Interference:
Political interference is the basic threat to the working of the bank. As the
interference is remained uncontrolled the working of the bank goes on reducing
trend.6

6
 Zarai Taraqiati Bank Limited

CHAPTER NO 4

4.1 COMPATITVE STRATEGY:

ZTBL has this strategy that it always gives priority to its customers , as compared to
other banks it has made it its motive that its foremost priority are its customers
service . According to this strategy it is demand and need of customers which should
me given priority and importance, so that they will get what they really want then
definitely they will be satisfied and prefer that bank over others. Another important
thing which differentiates them is that, ZTBL believes that making your existing
customers loyal is very important, because it is really the existence of your already
existing customers that attracts new people to come and try, like a famous saying
that money attracts money so in the same way loyal customers attract new
customers. To achieve this motive, ZTBL has made it its policy to give its customers
full time and attention, to introduce them with new policies, through their employees,
help line number, pamphlets, magazines, and it is made the duty of its employees to
deal with customers in such a manner that they feel very safe, that they have got all
the safety of their wealth, full attention and interest by the bankers.
It has following types of competitive strategies to remain in the market.
Low cost strategy
The bank offers much lower rate of interest as compared to its competitors thus is
more attracting for its target market. It offers 9% interest on all types of loans while in
market it prevails 14%.The pay remaining cost of loan from its own pocket in order to
achieve its basic goal of rural development.
4.2 TARGET MARKET
The target market of ZTBL is both the Retail banking and the corporate banking.
All the salaried persons, house wives, retired people, labors and all those type of
people who have a Normal amount of savings are included in banking. Where as a
big business men and big investors, financers, and those customers who take large
amounts of loans and finance are included in corporate banking, simple all those
customers which are included in corporate sector.
 Zarai Taraqiati Bank Limited

4.3 Services Offered By Ztbl:

ZTBL provides many remarkable services to its customers which really serves it as
its competitive strategy. All these performance of a bank mainly depends on the
services provided by it to its customers, better and higher the services greater the
performance. All the new customers and the already existing ones really get
attracted by these core competencies of the ZTBL.
The most prominent service offered by ZTBL, which differentiates it by other banks is
the Kissan Support Service provided by ZTBL. ZTBL is that one bank which has
the largest network all over the country to provide this facility; this service is provided
in each and every smallest branch of ZTBL. Other services are include lockers,
Home remittances, Hajj services. ZTBL uses these services to win its customers and
their level of satisfaction as its competitive strategy.

4.4 PRODUCTS:
LOCKERS:
ZTBL is a part from its core functional activity marked with country based agri
business, has started to serve its valued customers by offering lockers facility.
Initially, this facility is being offered 11 branches.
ZTBL has given its customers the facility of lockers, so that they can secure their
valuable things in the lockers, for example, gold, any important documents, or
anything which a person wants to keep very safely.
ZTBL lockers are available in three different sizes large, medium, and small on a
yearly fee. Locker holders are need not have an account in the bank. The customers
have to get back the security fees when they close their locker facility by the bank.
SAFE DEPOSIT LOCKERS INSURANCE:
The bank has already informed its safe deposit locker holders through half yearly
statement of accounts as on 30-06-08 that the bank has arranged insurance cover at
its own cost subject to the terms and conditions of the insurance policy for the losses
sustained and discovered by the reasons of damage, destruction or loss by fire,
burglary and locker breaking.
Maximum insurance ceiling provided the each category of lockers is mentioned here
under:
 Zarai Taraqiati Bank Limited

Serial Locker size Rent Per Annum Key Deposit

number
1 Small Rs. 1200/- Rs. 5,000/-

2 Medium Rs. 1800/- Rs. 10,000/-

3 Large Rs. 2500/- Rs. 15,000/-

Life Time Locker Facility

On the lump-sum payment of lockers rent for ten years entitle the lessee to avail the
locker facility for life time, without key deposit.

4.5 MARKETING STRATEGY

As marketing strategy it uses DIRECT MARKETING STRATEGY. As the target market of
this bank is small farmer who are unable to understand the complex marketing
strategies due to high illiteracy rate. The bank uses its own marketers plus credit
officers commonly known as MOBILE CREDIT OFFICERS (MCOs) they went from
door to door in their allotted areas where the farmers are willing to take benefit from
this low cost loaning. As it has secured market segment with no competition at this
level thus not require any complex strategy to be implemented in the market.
For any new scheme or policy it normally uses banners, leaflets and publicity
strategy.
 Zarai Taraqiati Bank Limited

CHAPTER NO 5

5.1 BUSINEES PROCESS OF ZTBL:

Like all other commercial banks this banks main working is to lend money to the
borrower at a specified rate. And unlike other commercial banks it has very low
interest rate even lower then authorized by state bank, the main purpose is to
develop the aggri sector. It has multiple departments working in different sectors of
the economy but lies only in the head office or in some selective zones. While some
departments are working in all zones in order to smoothly run the business.
Main Features of ZTBL:
To make lending for agriculture purpose for development
To effect recovery of all due loans advanced to the agriculture farming community
To promote/ mobilize deposits in different types of schemes focusing to generate
funds for such purposes.
In order to implement and promote such sort of business ZTBL has efficient
management comprising of following divisions/ departments etc.
Human Resource/ personnel division
Credit division
Recovery and Sam division
Finance and accounts division
Computer division
Planning and agriculture technology department
Credit Division
It is the main division in reference to its working and banks objectives. We may say
that it is the back bone of the bank. The whole structure of bank and working of its
other departments depends on the working of credit division.
Major lending schemes
Supervised agriculture credit scheme
Sada bahar scheme
Crop maximization project
White revolution scheme
 Zarai Taraqiati Bank Limited

Supervised agriculture credit scheme

Under this scheme agriculture loans are given for short, medium and long term loans
up to Rs.1.00 million per borrower/per case. The loans is sanctioned for In Fats,
livestock, orchard, tractor, agricultural machinery, tube well and irrigation facilities
etc. under this scheme besides provision of credit, information are to the farmers for
planning the farm, production, guidance for the implementation of the scheme,
marketing and repayment of loans.
White Revolution Scheme
PDDC (Pakistan Dairy Development Company) shall recommend good dairy farmer
to ZTBL and send the loan request to the bank along with necessary documents.
Initially the scheme will be for modernization of 5,000 farms during the 5 years
period. The modernization of dairy farm will be carried out through financing milk
cooling tank, generator, voltage stabilizer, hot water geezer, water pump, cooling pad
and other dairy equipment.
Sada Bahar scheme
For providing timely input loans for crops and working capital for poultry and fishery
etc, Bank has launched a Sada Bahar Scheme. Assessment for the inputs
requirements for the whole year is made at the time of first application. The amount
is so assessed is treated as Revolving Limit provided it is within the security limit.
The Managers are authorized to sanction such loan limits up to Rs.600 million.
This Scheme's main features are as under.
Revolving the Credit Limit is fixed to cater production credit and ancillary
requirements of the farmers during the one year period.
The documentation is once completed remains applicable for three years with
yearly cleanup or renewal without any further documents.
The borrowers can draw the credit in lump-sum or installments according to
his requirement.
Like-wise he can repay in lump-sum or installments during these year when
his cash position allows him.
Pass Book has containing transactions in his SBS Account is supplied to
every borrower free of cost.
 Zarai Taraqiati Bank Limited

Crop Maximization Project

Ministry of Food, Agriculture and Livestock, Government of Pakistan has launched
Crop Maximization Project in 109 villages in various districts through out the country
to increase the productivity/yield of crops. Under the project of MINFAL has to
provide funds of Rs.398.798 million to ZTBL for disbursing loans to the project
farmers for purchase of inputs. Till the time of funds of Rs.168 Million have since
been received by the Bank for the purpose. These funds are to be revolved for
meeting input credit needs in the project villages after which Bank will return the
principal amount to MINFAL. According to Credit needs of the project farmers are
being met by respective ZTBL branches through Village Organizations formed for the
purpose. Duly the currency of the project Bank is authorized to charge 4% per
annum mark-up on loans to project growers to meet its operational cost, however in
case of default Bank's normal rate of return i.e. 10%. 7
Pass book
A title deed which contain particulars of a land owner, details of holding and kind of
land, proportionate share of the land owner, details of mutation attested, number of
PIU and its value, value with reference of three years mutation and charge creation
and redemption of land.
Owner
Land owner includes a person to whom a holding has been transferred, or an estate
or holding has been let under the land revenue act 1967 for the recovery of an arrear
of land revenue or of a sum recoverable as such as arrear, any other person who is
in possession of an estate or any share or portion thereof, or in enjoyment of any
part of he profit of an estate but does not include a lessee or mortgagee.

7
 Zarai Taraqiati Bank Limited

Proper Documentation
Then the credit department has o maintain or complete the proper document file of
the borrower for sanctioning of loan this filing and its up to date maintenance is the
responsibility of the credit department.
And for this accomplishment it has to work with the operations and IT department.
The documents it need for the opening of a new account are as follows.
For The Individual Account.
Attested photocopy of the CNIC or passport of the individual. In case the CNIC does
not contain photograph then other document like driving license is required by the
bank for verification
In case of salaried person the attested copy of his service card or any evidence that
prove his service In case of illiterate person a passport size photograph of the new
account holder besides taking his right and left thumb impression on the specimen
signature card.
Partnership
Photocopy of CNIC of partners
Partnership deed
Registration certificate
Authority letter in original
Joint stock company
Resolution of board of directors for opening of new account
Memorandum and article of association
Certificate of incorporation
Certificate of commencement of business
Attested copies of CNIC of all directors
Issuance of Pass Book
Duty of revenue officer to complete and issue pass book in duplicate with in one
month on land owner request and payment of prescribed authentication of entries of
the pass book by the revenue officer.
 Zarai Taraqiati Bank Limited

The green copy is in the possession of bank now ad red in possession of revenue
office for record purpose recovery of amount in default It may be recovered from the
arrears of land revenue.

5.2 Account Opening and Cash Department

Borrowing the funds from different sources has become an essential feature of
today's business enterprises. But in the case of ZTBL bank lending of money to the
deserving borrower is the main aim of the ban as its main objective is to develop the
agriculture sector in the country.
Types of Accounts
In ZTBL, there are the following types of accounts:
Current Account (01)
Personal Saving Account (02)
Junior Account (15)
Rozana Bachat Account (04)

5.3 Account Opening Procedure

For the checking accounts (C/A), there are different types of account holders are
required for all these types of account holders. The operation or procedure
requirement that is needed for " Individual Account " differ greatly from " Joint
account " proprietorship "Partner ship , "Limited Company"
And "Club society or Association as explained below.
Individual's Account
When the single man or women opens an account in his or her own name and has
the right to operate it is called individual Account.
Documentation Requirement
For the illiterate person copy of National Identity Card is required as a primary
requirement. For the illiterate person and Veiled Women, along with the copy of
National Identity Card requirement he or she must come in person for opening the
account.
Operation
The person place a "Check Mark in the type of account and type of operation
required. He or She fills in part-I of the form , a fix his /her either two or four similar
 Zarai Taraqiati Bank Limited

signature (or thumb expression in the signature space and get it introduced and
signed by a person who already has an account with the bank and write his account
no in the specific rows in a specific space.

The person fills the "next of Kin position where he or she father, mother, husband or
wife or any other relative's name, his or her address, phone no and affix his or her
signature to certify this requirement. This requirement is needed because in his or
her absence bank can have correspondence with the specific person.
The person put her or his signature "or thumb expression on the signature
Specimen Card (S.S CARD) similar in the area on the form. One the back of S.S
card mailing address, telephone no, Person to contact and introducer space is filled
in. All these requirements are the necessary for future.
The person deposits the initial amount for opening his account to the cash counter.
The person put his signature on form-A (check book requisition) on two places in
"authorized signature" and fills the "Title of Account space by writing his name.
If the persons put his signature in Urdu and any language other than English, he
signed a "Vernacular form" where under take that affixed signature are original and
his own signature and two postal size photos are needed. The next day is opening of
the account.
Joint Account
When the two or more persons, neither partners, nor trustees, open an in their name
is called joint Account. Husband or wife two persons of same sex can open joint
account.
Documentation
For joint account copy of National Identity Card of all the persons is obtained other
things remaining same as in individuals account.
Operation
The person checks the type of account and type of operation required in the
respective box on the form. The persons fill the Part-I and part-II in the form.
Signatures of both persons are obtained on the form in the area specified for
signature and S.S. Card.
 Zarai Taraqiati Bank Limited

In the title of account space are allowed in the names of all the persons are
mentioned. Accounts holder specified the form that they will operate the form singly
or jointly.

Proprietorship Account
When an owner of a firm operating singly, opens an account in his firm name, this
Account is called a proprietorship Account the proper himself liable for all his acts.
Documentation Required
For this kind of account, an application for opening the account on the firm letter -pad
(having the firm name) is required along with the N-I-C- Card of proprietor.
Operation
Al l operation remains the same except that the firm name is written in the "Title of
the Account" area and signature of the proprietor are affixed in the S.S. Cards the
area specified for signatures on the form.
Partner Ship Account
The account is opened in the firm name and all partner designate one two persons to
act on behalf of the partner ship firmer all acts on behalf of firm. The partners are
that the partnership firm is liable for the acts of the firm jointly and severely. Every
partner has in the firm has an implied authority bind his co. partners are drawing and
enclosed cheques.
Documentations
Copy of N.I. card of all partners application to open the account on the firm letter pad
partner ship deed in case registered partnership firm letter showing the implied
Authority of one or more partners to act on behalf of the firm. In this case of non-
registered partnership firm, understanding on behalf of the firm to remain liable for all
the acts of the firm.
Name, address of all partners is written to the pad.
Operation
All other requirement remain same except that the form is dully signed by all partners
cards are signed by all those partners who will act on behalf of the firm and along
filling part-I , Part-Iv is also filled.
 Zarai Taraqiati Bank Limited

5.4 Cheque Books:

Cheque books are issued after three days of opening of account, the first cheque
book issuance charges costs rupees 100, second and so on cheque books are
issued on request of the customer paid 50 Rupees, and the customer has to submit
a request form for issuance of another cheque book, and the charges of these
cheque books are 215 rupees.
There are the two types of cheque books,
The first one is the 50 leaves and
The second one is the 25 leaves.
Cheque Book Issuing
Check books are the issued only for checking the account such as current Account
and saving Account. That is not issue for the other fixed or term deposits because of
their Long term Accounts nature.
Cheque Book Issuing Procedure
Signatures on the cheque book requisition are the verified by the matching with
signatures on DMS software which the bank are used. Cheque book leaves number,
account number, account holders name are mentioned in the cheque book is made
by mentioning the and the total of sum of excise duty and provincial tax.
The name of A/c holder and date of cheque book issuance is written on cheque book
requisition the account-opening officer puts his initials on requisition leave.
A/c number is stamped over the leaves of cheque book and finally authorized person
affix his signature over the debit voucher and cheque book is handed over to the
customer.
Verification of Signature
 Zarai Taraqiati Bank Limited

After affixing the two stamps i.e. paid stamp and branch stamp, the cheque is sent to
the accountant for the verification of signature from signature card. After
authentication a cheque is sent to cash department
Deduction of Zakat
Form the profitable accounts zakat is deducted at the rate of Rs. 2.5 % .annually on
the outstanding balance of accounts on the first day of every valuation dale i.e.
First day of the Ramadan. The Central zakat Authority fixes minimum balance for the
deduction of zakat before the valuation date.
Withholding Tax
Whenever a profit is paid on any deposit it is subjected to the withholding tax @ 10%
annually.

5.5 Daily Posting of Vouchers In The Books Of Accounts:

What is voucher?
Voucher is documentary evidence through which a transaction took place in any
business organization i.e. Banks, Insurance companies, partnership firms, joint stock
companies, public/ private offices etc.
Types of vouchers
There are three types of vouchers through which any business concern may start
their business in a specified schedule, time & date. In our ZTBL, following vouchers
are being used in the branches for several purposes:-
Debit cash voucher
Credit cash voucher
Transfer voucher
All these vouchers are prepared during business hours and after closing of cash
hours, vouchers are checked, edited, signed, stitched &sealed properly. Vouchers
are kept under proper safe custody after posting of all transactions into relevant
books of accounts. Assistant Manager (Operation) has been assigned for posting of
such vouchers into the books on daily basis.
 Zarai Taraqiati Bank Limited

5.6 It Department:
It department works side by side with the accounts department as its only purpose is
to maintain the balances and accounts information in the self designed softwares
namely
DMS
CFOCS
MIRS
In DMS there is management of data related to borrowers, like accounts detail
information, daily posting of vouchers, cash incoming and outgoing record. This will
help in early update about the bank processes then manually.
CFOS is the software contains detail about the loan and loanee. It tells how many
times a person acquired the loan facility under which L.C no. and what the date of
transactions and the up to date status of the loan.
MIRS are the credit investigation system in which one investigates about the loanee
from the nadra it also called nadra verification software.
 Zarai Taraqiati Bank Limited

CHAPTER NO 6

6.1 LEARNING AS AN INTERNEE:

Duties and accomplishment:
I have worked as an internee in the ZTBL Church Road Rahim Yar Khan for 6 week.
During my internship I learned a lot about the banking work. The branch was Normal
comparatively with others cities of main branches but it had all departments. I tried
my best level to gain from this internship experience.
On first day I and I report to the branch manager and Rao Rizwan Atif Deputy
Manager he guided me and gave me information about the branch. He told me about
the departments of the bank and some other basic information about the bank,
Cheques, records, etc.
In the next week He told me that now I have to start work in the different
departments. I started my internship from account department.
Account Opening
In this department daily many people came for open the accounts according to their
own choice of account. In PLS Saving account and current account procedure of
opening of account is the same except the initial deposit.
The account opening form contains the following informations.
The type of accounts which the any person want to be open, he has to select
that.
Particular of deposits (period for operation).
 Zarai Taraqiati Bank Limited

Complete address.
Telephone number.
Nature of business etc.
Detail of other accounts.
Operational instruction
Signature
Name of next of kin
Zakat deduction
Personal information.
Name.
Date of birth.
CNIC copy
Nationality etc.
Then signatures of the account holders and the bankers and manager.
Signature of the introducer, his account number and address
When this form is filled then signature of the person who want to open the account
are to be taken on the specimen signature card. For account opining three SS card
fill and take account holder signature and if account holder is illiterate then attach a
photo and identity mark also wrote in the side of SS cards then in PC all information
is recorded and issue the account number which are generate during record
information. A deposit slip gives the customer and they open their account only 1000
Rs. Then after a week letter or more then week after confirmation of the of head
office account holder can get Cheques book is which is issued to him. Now she/he
can withdraw the amount by fulfilling Cheques up to the extent of his balance in the
account.
Issuing of Cheque Book
I issued cheque books in the account opening department. The cheque book is
issued after opening of the account. The Account No. is stamped by the rubber
stamp on each cheque. Then it is given to the person. When all cheques books are
 Zarai Taraqiati Bank Limited

issued to the customers then these are recorded in the CD Book or PLS saving
book. All cheque books are recorded with their a/c number and name of the person.
Cash Department
I spent one week in the cash department here only see the work of this department
because there is no permission to internee to work this department because it is so
risky after a week I understand the work in this department. One person issued token
to the customers and then recorded it into the token book. The procedure of issuing
the token is that when cheque is presented at the counter. Then following things are
checked.
The signatures on front and at the back.
Similarities in the signatures of the issuer of the cheque.
Amount whether tallies with the amount written in words.
Then token is issued to him and cheque is stamped at the back at which date and
token number is filled. Then all cheques are forwarded to the next counter where
signatures are compared with the signatures in the book and the balance of the
account is checked. If the cheque has not any fault on it then it is given to cash
payment counter and cash is paid to the customer up to the amount mentioned on
the cheque.
Accounts Department:
I also spent two weeks in clearing department. I also learned to fill the deposit
slips of current and saving account in this department.
I also learned to fill the cheques in this department, as most of the customers
do not know that how to fill the cheques and deposit slips ( mostly the labor
class and others who do baking by giving just thumb impressions).
I also learned the clearing of inward and outward cheques.
I learned to make Demand drafts
AND I also learned to enter the daily inward and outward proceedings in the
record.
Cheque Books and Lockers:
I also spent the two weeks in this department. I learned to send, cheques book and
lockers request of the customers. And I also learned to issue them the cheques
 Zarai Taraqiati Bank Limited

books and to operate lockers. Whenever any customer used to come to collect his or
her cheques book then I used to take his sign on the record register, do stamping,
write date of issuance, match his sign with sign card and then provide him his
cheques book. It was also my duty to explain the working procedure, so that if the
any customer had any query in his mind he could ask me the details.
It was also my duty to issue the lockers, that if any customer used to come to take
any locker It was my duty to let him operate his locker or note the operating time of
his locker, I also used to tell them about the rents and security of his lockers.

Diverse Duties:
Apart from my duties mentioned above, in the last week of my internship, I had to
perform some other duties as well. Calling was the one of those duties. It is the
manual checking of the record produced by the computer pertaining encashment,
transfer and collection of cheques and other instruments like deposit slips.
6.2 New Knowledge Acquired:
Issuance of Cheque Book
Whenever a person opens an account with ZTBL, then he is issued a cheque book
which is free of cost. But for his purpose he has to fill a requisition slip, and then after
about four days of opening of account he gets his cheque book, which comes from
Lahore.
There are two types of cheque books:
The first type of cheque book has 50 leaves.
The second type of cheque book has 25 leaves.
There is also another requisition slip inside each cheque book, which is used for
the purpose of reissuance of a new cheque book if the leaves of first cheque
book start finishing. There is written the title of account holder, his account
number, the stamp of ZTBL and the signatures of the authorized person on every
page of cheque book and also on the requisition slip.
 Zarai Taraqiati Bank Limited

After a few days the Bank sends or mails another copy of Letter of thanks to the
customer as well.

6.3 PROBLEMS ENCOUNTERED:

The biggest problem I had to face during my start of internship was the new
environment. In the beginning I felt very hard to mix with the employees of the
bank.As all of them were a kind of strangers for me thats why I couldnt feel
comfortable in the very first week. Basically it was all because of being in a new
place. But after a week I started adjusting with them and after two weeks I also felt
that I am a part of this bank.
The second problem was that I had to be very formal there, like as we are very
casual and free minded in university life, but when I was in the bank, I really felt that I
have to be very formal all the time.
Then another problem which I really faced was the hectic routine of the bank. I had
to go n time, work or at least to sit on a single place from 9 to 5 and be formal and
present minded all the time without being non serious. And as all the customers used
to come for things related to finance, which is a very sensitive issue thats why I had
to be very attentive all the time and no holiday on Saturdays.
The knowledge which we acquired through our books is very different from the
practical knowledge thats why I really had to learn a lot many new things every day.
And all those things which we have studied in our books in the form of different
theories when I had to apply them practically it was not so easy at the first time at
least.
 Zarai Taraqiati Bank Limited

6.4 HOW EXPERIENCE IMPACTS MY CAREER:

By doing internship for six weeks in ZTBL I have gained a lot of practical experience
of doing work, which was really different from the experience of student life. By doing
internship I really gained the knowledge of banking sector, which I didnt found so
easy, I have learnt the meaning of responsibility, time management, and
professionalism. Because of this experience now I can decide well that should I opt
to join banking field or should go for another one.
The real thing which I gained by doing this internship was the confidence and
knowledge, the confidence and knowledge which we gain from our student life is far
more different from this one, because whenever I used to talk or deal with those
bankers who are in banking sector from more then a decade they used to give me a
lot of knowledge to deal with daily routine matters of banking sector.
Whenever I used to interact with such highly professional bankers, I used to hesitate
in the beginning but with the passage of time I also gained that much confidence and
a little knowledge that I could interact with them more sense ably.
In the beginning really it was very difficult for me to interact and work with such
formal people in such a formal environment but as I said that I really leant to work
with them and talk to them with the passage of time and now I think I will not find any
difficulty in at least understanding the environment of organizations and offices when
I will start my job in near by future. I also feel that I have also understood the basic
culture and environment of professional life which is very important to understand for
doing any kind of job.
 Zarai Taraqiati Bank Limited

Now I really feel that the knowledge which I got by working ZTBL for six weeks will
be really helpful to me in future, as I have got the experience of General banking
during my student life in my vacations from university. This experience will also help
me in getting a good job in near future because now at least I have some experience
of work.