Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
assignment no 2
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The Bank of Punjab
The Bank of Punjab was established in November 1989, the first branch which
opened was the Main Branch Lahore. In 1989 BOP was mended as a non-scheduled
Bank in the province of Punjab. The Bank of Punjab started functioning with the
The total number of staff of BOP is approx.4000. The staff of BOP is highly qualified
and hard working. Most of the employees are Master Degree Holder. If we highlight
the fact of network BOP is the 6th largest among both the local and foreign banks, in
the last year ratings it was at 7th position among the top ten banks in Pakistan. Bank
earned a pre-tax profit of Rs. 124.739 million.
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is based on such deposits without these deposits it is difficult for the bank to run
effectively. Deposits are capital of bank and it is more than bank own capital fund.
This deposit is a form of borrowing for bank. Bank then uses these deposits by lent
out it other parties that generate profits and bank is shared as well in such profit as
well. Such deposit formation is done through opening an account in the bank account
opening department.
Basic Tasks
Cash Department
This department is considered as most likely to risk in any bank. The requirement to
work in this department is that the very careful, capable, competent and alert are
required. Balance of payments actually has a diligent staff with considerable skills
and to work. There is a department of box in which the head of the department of
housing and deeply controlling all the money on their activities
Basic Tasks
Issuance of Token.
Receiving of cash/payment.
Receiving of utility, credit card bills.
Receiving of school fee.
Handling and keeping records of said department.
Marketing for branch deposit.
Alternate of Cash Officer on Alternate Saturday.
Any other duty will be assigned by the Manage at any time
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Clearing Department
The function of this department is to make the arrangements for collection of bank
cheques. But in the traditional banking system it is not the legal obligation of the
banker to collect cheques drawn upon other bank for a customer. But, in today
banking system scenario through modern banking practices it is now easy the
collection of cheques and bills on behalf of the customer.
Remittance Department
Transfer of money or equivalent to money from one branch to another branch of the
same bank is called remittance. This service is specially provides to the regular
customer of the bank. The main function of this department is transfer of funds.
Fundamental function of this department is under below
Basic Tasks
Demand Draft.
Travellers Cheque
Telegraphic transfer.
Mail transfer.
Pay order.
OBC.
Credit Department
Credit department is also one of the most important departments of the bank. It's
called the brain bank. This department controls the relations of the bank or finance-
related loans. The credit department of the balance of payments also performs the
functions of connecting to the credit management and credit accounts. Skilled
professionals offer modern corporate banking services in personal behavior. The
commitment to maintain steady long-term relationships and long term relationships
with our customers, the Bank's balance of payments services change combined with
the technological capacity to offer banking solutions complicated.
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Hierarchy of BOP
branch
manager
operational
manager
advances account
opening
Remittances
& credit
mortgage short term
loans loans
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SWOT Analysis
SWOT analysis is one of the most important steps in formulating strategy using the
organization mission as a context; managers assess internal strengths distinctive
competencies & weaknesses and external opportunities & threats. The goal is to then
develop good strategies and exploit strengths and opportunities, neutralize threats and
avoid weaknesses.
Strengths
BOP has signed an MOU with Government of the Punjab to provide facility
regarding to SME financing to the engineering firms of Government of the
Punjab for managing infrastructure
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The bank of the Punjab is rated among top six banks in Pakistan; in
perspective of remittance business as compare other province banks
BOP has high credit rating as compare to other province bank, because BOP is
performing positive role in economic progress through reengineered
operations and innovative financial products
The BOP in strength that it is managing the Chief Minister self employment
scheme for unemployed educated youth.
The BOP has employ energetic work ethics conducive to merit, integrity
better then peers and exceeding customers expectations as compare to other
province banks
BOP has huge branches in commercial areas even remote area to meet the
consumers desired
BOP is following roles and regulation very strictly which received from
Punjab Government, so it makes the environment in disciplined
BOP has strength due to its name “Punjab” so Majority people prefer to
deposit money in this bank
BOP in strength because it has reliable, user friendly internal computer system
for their consumers
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BOP has very sound financial strength as compare to others bank
Weaknesses
Poor performance of the employees because most the employee did not
communicate with the managers related to task issue or for effective planning
Lack of coordination: employee could not coordinate each other if any worker
face any dispute during the work, so there is need coordination in decision
making, problem solving, in any issues if raise during working hours.
Traditional approach Because BOP is still using old method for working and
for documentation
BOP has good product and service but it cannot participate in promoting its
product on electronic media. Less promotion activities
Poor customers dealing as compare to other banks, employee did not behave
with consumers in sweat manners
Opportunities
Due to huge Government Deposit BOP has the opportunity to expand its
network in remote areas.
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The BOP management have been improved by the new management, now
there is opportunity to considered adequate effectively implemented and
monitored
Due to huge revenue, BOP has opportunity to introduce new scheme related to
Consumers finance, in Retail banking, and in Agriculture loan scheme to
obtained maximum market share
Due to increasing in deposit BOP could increase its investment and financing
in banking sector
Threats
Inflation is big causes, Modern type of banking, these are the big threats for
BOP, it leads to reduce the deposit by reducing the consumers as well as
working condition
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Due to usability among country and its economic condition investor feel
hesitate to investment their revenue
Modern marketing concept, efficient service adopt by the competitors are also
threat to BOP
Muslim community hate the consumers banking, it is also threat for BOP
PEST analysis of any industry investigates the important factors that affect the
industry and influence the companies operating in the sector. PEST stands for
Political, Economic, Social and Technological analysis. The PEST Analysis is a
tool to analyze the forces that drive the industry and how those factors can
influence the industry.
POLITICAL
ECONOMICAL
SOCIO CULTURAL
TECHNOLOGICAL
Political-Legal
The political condition of our country is not satisfactory. Every government has its own
policies. Every government cut off polices of previous Government also is trying to
implement new tax policies and other regulation to encourage the economy. When the
political environment is not satisfactory, the foreign investors would not like to come and
make investment due to which foreign investment would go down.
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•Agriculture contributes to poverty reduction for vast majority of the poor live in rural areas.
Government has taken initiatives in agriculture and rural development.
•Government of Pakistan through SBP has provided backing to the banking industry by
decreasing cash reserve requirements (CRR) to 6% from 8%. This has provided liquidity to
banks worth Rs. 180 Billion
•Improvement in law and order and elimination of political unrest are very much imperative
for the Government in order to provide investment conducive environment to both local and
foreign investors.
Economic
The bank of Punjab is operating its business in present economy. The economic condition of
this country is not up to mark. Heavy loans and increasing inflation rate make the business
environment strict. Increasing inflation rate cause of production due to which our countries
products well out at a high prices with low margin.
•It appears that the economy will face tremendous challenges and some difficult decisions in
2008-09, as inflationary risks persist. The uptrend witnessed in CPI inflation during the last
few months is largely a result of continued rising food prices.
•Energy crisis is looming in the country, because of an increase in demand and a rather slow
improvement in supply.
•Economic instability prevailing in worldwide financial markets & investors are loosing their
confidence in banks
Social cultural
In this environment, many processes can effect the organization like attitudes, values
behavior and beliefs of people living in different areas. The bank of Punjab is providing
services according to the varying demands and changing life styles.
•Visible chaos in society is prompting people to take out their investments &valuables from
banks as there are huge chances of banks’ liquidation
•The huge culture of opening bank accounts, investment making, and credit & debit cards
now seems to moving towards declining phase
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Technological
Technical achievement is very important tool to provide services and customers changing
demands. The development and application of advanced technology help this organization to
compete in the global market place.
Entry barriers
The Pakistani market is highly regulated by the government and also by the central
bank. A lot of decisions such as regularization of interest on loans and deposits as
well as money supply Is controlled by the state bank of Pakistan.
Rivalry among the existing competitor
When it comes to the banking sector in the country we could include in whole lot of
public as well as private banks along with NBFC and micro finance institutes widely
spread in the country. The banking sector of the country has 56 banking institutions
which include public sector, Islamic banks, foreign banks, development financial
institution specialized banks and micro finance institutions.
Bargaining power of suppliers
The supplier of banks is the people from who bank raise funds. So major sources
funds come from their customer who becomes the supplier in this case.
Bargaining power of the customer
The customer and the depositors have a high bargaining power in the markets. Any
bank giving the higher rate of interest would effects the large number of customer,
because there are number of banks operating in the market which offer similar
services.
Threat from substitutes
There are number of substitutes in retail finance industry such as money leader NBFC
micro finance and also the insurance companies. Banks are seeing there competition
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rising from unconventional companies. Markets like Pakistan customer have high
propensity towards switching to other substitutes.
Primary and secondary stakeholders
Lahore
Kha
n CEO B, Block-E-II, Main Boulevard, Gulberg-III,
Lahore.
Secretariat, Lahore.
Director
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Court, Lahore.
Khawaja Lahore.
Name Designation
Mr. Khalid Siddiq Tirmizey Deputy CEO & Head Islamic Banking
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Mr.Moghis Rafiuddin Bokhari Group Head, Human Resources
Mr.Ijaz ur Rehman Qureshi Group Head, Audit & Risk Asset Review
(CSR)With a vast network of 536 branches, strategically located across country, and having
diverse clientele of over two million, The Bank of Punjab is playing its due role in social,
environmental and financial uplift of the society through its Corporate Social Responsibility
(CSR) initiatives. The Bank’s CSR initiatives are also aimed at improving inancial inclusion
in the country thereby achieving the objective of a balanced growth with due participation of
all segments of society.
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BANK AL-FALAH LIMITED
Bank Al Falah Limited was incorporated in June 21st, 1997 as a public limited company under
the Companies Ordinance 1984. Its banking operations commenced from November 1st ,1997.
The bank is engaged in commercial banking and related services as defined in the Banking
companies ordinance 1962. The Bank is currently operating through 223 branches in Pakistan,
with the registered office at B.A.Building, I.I. Chundrigar, Karachi.
The portfolio concentrates on all aspects of conventional banking as well as the financial needs
of corporate sector. Dynamic and high value product includes Car Financing, Home Financing,
Rupee Travellers Cheques, Credits Cards, Debit Cards, On line Banking, ATM and consumer
Durables. In addition to this, Islamic Banking Division is a recent initiative, which operates as
separate branch. It offers Shariah Compliant products through a network of five branches, which
will increase to 50 by the year 2007.
The bank perceived the requirements of customers and matches them with quality products and
service solutions. During the past five years, bank has emerged as one of the foremost financial
institution in the region endeavoring to meet the needs of tomorrow as well as today. To
continually upgrade the quality of service to the customers, training of team members in all the
integral aspects of banking, customer service and IT was specially focused.
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Operations Department
Operation department of Bank Alfalah Main Branch Multan is responsible for the overall
operations of the bank. Here operations officer is responsible to make the daily report of
operation and solve the queries of different branches remaining under the policies of Bank
Alfalah.
b) Cash Department
c) Clearing
d) Remittances
Types of Accounts
a) Current Accounts
No interest or profit shall be payable on current account to allow the customer to
overdraw the Account, the bank shall charge Markup/Interest. The minimum balance
required for opening the current account is rupees 5000/- inter bank fun transaction
are handled by current account.
b) Saving Account
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The purpose of this account is to introduce the debit of saving individuals in the
neighborhood. The profit on saving account is paid on the basis of profit and loss
sharing at 2% six monthly. The minimum balance requirement for opening the
account is Rs. 2500/-
c) Notice Deposits
Notice Deposits are kind a fixed deposits the minimum balance requirement for
opening account is Rs. 2500/- and payment is drawn on maturity of the specific
period. Notice Deposit is of Two Types: One for which a prior notice of 30 days and
is required from the customer before withdrawing deposited amount and for which
rate return is 6.10%. Second for which a prior notice of 30 days and above is required
from the customer before withdrawing deposited amount and for which the rate of
return is 7.50%.
d) Term Deposit
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 withdraw the principal amount. The rate of
return of this amount varies from 2.5% to 5.75%. The term deposit account varies
from one month to 5 years and the minimum balance requirement is Rs. 2500/-
Credit Department
Type of Borrowers:
This section classifies and describes various types of borrowers in the market along
with specific lending guide lines. The policy should be read and understood carefully
as the bank may enter into a business relationship with them at any point in time.
Following are the three broad categories of borrowers.
Individuals: Existing Account Holders Staff Members Close Relatives of Staff
Members Businesses sponsored by staff members Employees of other banks Joints
Accounts Business Entities: Sole Proprietorship Partnership Joint Venture Limited
Liability Company Group Accounts
Following are the different types or facilities offered by the bank Funded Credits
Non-Funded Credits a) Current Finance a) Letters of Credit b) Term Finance b)
Guarantees
Accounting Department Account department is the most important department of
the bank because it is concerned with: Revenue Income from sales of goods and
services, minus the cost associated with things like returned or undeliverable
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merchandise and just plain Revenue Expenses All operating, overhead and
production costs incurred in producing gross revenue.
Employees
We have always believed that investing in human capital is the key to achieving the Bank’s
strategic objectives. The Bank ensures that employees are kept motivated and committed
through productive trainings, development programmes, appreciation via various platforms and
engagement in activities other than the core business operations. Besides developing the
professional skills of individuals, the Bank promotes an environment of learning and self-
satisfying lifestyle through initiatives such as: • Periodic Employee Engagement Surveys •
Adventure and Lifestyle Societies • Recognition of Success Stories of individuals • Learning
and Development Programmes • Trainings and Development• Assistance Schemes for
Professional Qualifications to Top Performers• CEO’s Club and Chevron Awards
The Bank acknowledges the contributions of female employees and is proud to be an equal
opportunity employer.
Customers
Our customers are our focus, driving us to constantly engage with them and deliver services that
surpass their expectations. We want to inspire and enable our customers to pursue what they
want. Developing a deeper understanding of their evolving needs, offering innovative products,
and working on our customer insights has contributed greatly in achieving this objective. Our
SME Toolkit, Wealth Management Services, Islamic Banking operations, and Digital Banking
platforms all underline our commitment towards customer-centricity. We have always aimed to
maintain continuous service performance visibility across various product streams, branch
networks and other service touch-points to ensure that we meet our commitments to our
customers. These engagements are not only limited to the interactions made through our branch
network, but are extended across multiple channels like call centres, social media, surveys,
awareness sessions, roadshows, and other various advertising campaigns.
Regulatory Bodies
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regulators, both locally as well as overseas, or their authorised representatives. The Bank has
always appreciated the positive support of the State Bank of Pakistan, the Securities and
Exchange Commission of Pakistan, the Pakistan Stock Exchange, and other regulatory bodies.
Shareholders/Institutional Investors
One of our significant goals is to deliver long-term value to our shareholders. Shareholders’
trust sets the strategic direction of any institution and their support further facilitates the
achievement of key objectives. Engagement through AGMs and EOGMs certify that the
shareholders actively participate to ensure the business is sustainable in the years to come. Press
Releases and Annual Reports (Quarterly, Semi-Annually and Annually) are disseminated in a
timely manner to ensure shareholders’ engagements at all times.
Strengths
Since, inception of Bank Alfalah, it has moved rapidly in expanding branch network and
deposit base, along with making profitable advances and increasing the range of products and
services bank have made a break-through in providing premier services at an affordable cost
to our customers.
Bank Alfalah has been awarded an AA- (double A minus) and an A1+ (A one plus) in the
long and short term respectively by the PACRA. These rating denote very high credit quality
and very low expectation of credit risk.
The main source of a financial institution is public savings in this regard public confidence
plays a vital role. So, the confidence of customers are the main strength of Bank Alfalah.
Weaknesses
As per Bank policy, advertising and publicity is not extensively emphasized. Through
advertisement customers could be kept abreast with the products and services.
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The main focus of Bank is major cities of Pakistan. It is direly needed to extend its network
and people should be educated about the functioning of bank. Since, Bank Alfalah has strong
set up in UAE and Middle East, therefore, specifically those areas of Pakistan should be
targeted where large number of people are working abroad. Hence, bank could avail an
excellent deposit rate by using its annual budget specified for network extension.
Opportunities
In the prevailing scenario, Bank Alfalah could penetrate further and could capture various
corporate customers in addition to the retail customers by expanding their network.
In addition to the excellent routine banking, it has earned a good name by offering special
products like car financing, home financing and credit card. So, the penetration of these
products could enhance the market share.
In the rapidly growing industry of Pakistan, launching of another SBU, Alwarid Mobile will
be an excellent addition towards the credibility as well as enhancement of Bank Alfalah’s
market share.
Bank Alfalah has launched another division known as Islamic Banking. This new aspect will
also attract a large number of people, who don’t want to deal with interest bearing banking.
Hence, it’s a new opportunity where competitors are limited.
Threats
While doing business, threats are part of the game. Especially, in this era, most of the
financial institutions are working as Private Limited Company and facing or have a fear of
threat from their competitor as well as new entrants.
In order to maintain as well as to enhance the market share, banks always try to introduce
new schemes / packages. Hence, the environment is very much innovative and adaptive to the
needs of customers.
Though Bank Alfalah has a strong footing and maintain a good number of loyal customer,
still bank has threats in various sectors:
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a. In Car Financing MCB & UBL are threats however, the expected car
financing of ABN Amro could also be a threat for Bank Alfalah.
c. In credit cards, Bank Alfalah captured the market share of City Bank and
Standard Chartered Bank. Till yet the bank has no prominent threat. But, the
launch of Askari Bank Master Card and Union Bank Card might be threat
after some time.
Bank al-Falah is in Growth stage of the company life cycle. The reason behind this is that it
was launched in Pakistan in 1997 and from that date onward it is progressing and achieving
its aims and because of that it is in growth stage.
The overall banking industry in Pakistan is at maturity stage, because of the recent economic
crisis and the current economic conditions of Pakistan.
The external environment of Bank Al-Falah includes their external customers and
competitors etc. The country forces affecting the environment e.g. Political forces, Economic
forces, Socio-cultural forces, and Technological forces are the part of the external
environment.
Political
Political factors in any countries affect the organizations and institutions greatly. If there is a
stable political environment, the organizations flourish successfully but if there is instability
in political environment, then there is a bad effect on all institutions and organizations. If we
look Bank Al-Falah with the aspect of political environment, there are some rules made by
the government to follow. A regulatory approval is necessary from the State Bank of Pakistan
in order to launch a bank. Further more there is a requirement of State Bank of Pakistan that
the paid up capital of Bank Al- Falah should be Rs 10 billion by 2010, Rs 13 billion till 2011
and Rs 23 billion by 2013.
Economic
As we know the economic conditions of the country at the current is not so good, and there
was a huge economic crisis recently which affected many banks. Bank Al-Falah should
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consider short term and long term issues concerning economy of the country. It is obvious
that with the current situation, Bank Al- Falah like many other banks are being affected by
the challenges like inflation, unemployment and economic crisis.
Socio- Cultural
Every country has its own social values and cultures. Bank Al-Falah is doing good by
keeping in mind the cultural values of Pakistan. As we can see from its advertisements that it
reflects the true cultural and social values. And by doing this, Bank-Al Falah is attracting a
great deal of customers. Because it is natural that when some organization takes care of
customer’s social and cultural values, then the customers are naturally attracted towards that
particular organization.
Technological
The technology plays a very important role in today’s successful organization. Bank Al-Falah
is doing good in introducing technologies as and when required by the Bank. Further it trains
the employees to use those technologies.
Porter discussed five competitive forces in the competitive analysis of the company.
Here is Bank Al- Falah’s competitive analysis with respect to porter’s five competitive
forces.
It’s a threat of having the new entrance in the same industry. And for Bank Al-Falah this
threat is high as more new banks are being launched in the country. It’s negative for Bank Al-
Falah as they have now to more think about their product and services. The latest entrance in
this industry is of Barclays and RBS.
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Customers are influenced by the brand name Bank al-Falah “The Caring Bank” The bank sets
its own prices, not influenced by the customer, due to the low bargaining power, Bank Al-
Falah gets high profit and has positive effect on the company.
Bargaining power of supplier for bank Al-Falah is low. The suppliers for any particular bank
are their customers, investors and stake holders. Bank Al-Falah has many customers and
stake holders. Because its parent company is Abu Dhabi Company.
Threat of substitute
The threat in which customers move from your organization to another organization bearing
switching cost is called threat of substitute. The threat of substitute for Bank Al-Falah is high
and it creates negative effect on the company because the switching cost for the customers is
very low. Because it doesn’t cost much to open an account in another branch. And now a
days an individual person has many bank accounts. Due to which there is a great threat of
substitute for Bank Al- Falah.
At Bank Alfalah, we see Corporate Social Responsibility as one of the most important
aspects of our business. We believe that, by creating shared values, our success and our
customers’ successes are intertwined. As we continue to build responsible business practices
across the Bank, we ensure that we are also active in giving back to society.
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