COMSATS INSTITUTE OF INFORMATION TECHNOLOGY ISLAMABAD

SUBMITTED TO: Sir Wajid Shakeel

SUBMITTED BY:

Sohail Sadiq

Rafaqat Munsha

Muhammad Zohaib

Shahid Ishaq Awan

Zakir Hussain War

Muzahar Abass

Zeeshan Haider Bhatti

Wasim Tajj

DATE: October 13, 2010

 Brief
introduction about ZARI TARKYATI BANK OF PAKISTAN

Zarai Taraqiati Bank Limited (ZTBL) erstwhile Agricultural Development

Bank of Pakistan (ADBP) is the premier financial institution geared
towards the development of agriculture sector through provision of
financial services and technical know how. The restructuring of former
ADBP is being carried out with the aim to uplift the agriculture and
rural sector by raising farm productivity, streamlining the institutional
credit and increasing income generating capacity of the farming
community. ZTBL was incorporated as a Public Limited Company on
14th December, 2002 through repeal of ADB Ordinance of 1961.ZTBL
is a key R.F.I of Pakistan providing affordable, rural and agriculture
financial/non-financial services to the rural 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 over
one million accumulated account holders with the average loan size of
around Rs.89,000 serving 65%, 31% & 4 % of subsistence, economic
and large growers respectively.

The total assets of the Bank stand at Rs.84 billion with authorized
capital of Rs.25 billion as of 31.12.2005, with a nation-wide working
strength comprises 5500 employees. The share of ZTBL in total
national institutional agricultural credit remains around 35%. ZTBL was
incorporated as a Public Limited Company on 14th December, 2002
through repeal of formal Agricultural Development Bank of Pakistan
Ordinance of 1961. Thereby transforming the bank as a corporate
entity to serve as a R. F.I

Uncertainty factors to ZTBL

ZTBL suffers many uncertain conditions now a days in paksitan the

reason behind that is the current flood conditions of the country where
they invested a huge amount of loans in the country certainly they
faced a huge uncertain environment there is a doubtful condtion in
such an environment that one will hasitate to invest in such a
condition. It is also a doubt full condition for the investors that they
relectuant to invest in such a conditions. But for the bank it is much
more uncertainty to recover the amounts that they have invested in
such a places.
Risk Management Frame Work Organizational Structure:

Risk Management in the modern context is a dynamic process in order to ensure a sound
credit portfolio as well as to meet the standards laid down by SBP. With this objective the
office of Risk Manager has been established in ZTBL. The Bank has gained significant
momentum in some of the issues of credit risk management. The policies of Bank have
been broadened to align the risk management strategies with portfolio growth,
complexities to comply with Basel II standard.

Risk Management Policy and Charter:

The Risk Management Policy of the bank is in the process of implementation with
broader Risk Management Framework of the Bank. At present Credit Risk is reviewed at
the Bank level only. Credit portfolio, disbursement, recovery and security value are
Critically analyzed on a regular basis and Risk Gaps are reported to the Credit Risk
Management Committee proposing either to eliminate or to minimize the Risk Gaps.
During the last quarter of 2006, Risk Manager has also undertaken review of SAM
Portfolio. The process of developing recovery strategy for such loans is in progress.
Operational Risk Module comprising Key Risk Indicator (KRI), Control Self Assessment
(CSA) and Corporate Governance (CG) has been successfully implemented in seventeen
pilot branches of the ZTBL. This module will be rolled out to the remaining
Branches of the bank during 2007. Operational Risk at Head Office is reviewed on a
regular basis and Risk Gaps are reported to the Operational Risk Committee for
corrective measures so that the reported Risk Gaps could be eliminated or minimized