13170920-018 - INternship report askari bank PDF

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INternship report askari bank...

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4. Brief Executive Summary:

This report is prepared after getting internship in Bank of Punjab. Bank of is the oldest bank that is still operating in the t provide financial services to the residents of Pakistan. The reports precisely discuss the banking sector its contributions to the economy of Pakistan, and about all the activities that are performed in a bank while facilitating the customers. This report holds the information about the history of Bank of Punjab, Departments and hierarchical information, SWOT analysis, product or Service line, Awards and all other detail about the Brach located in Kachehri Chowk, Sialkot Road, Wazirabad. This report also contains the analysis of banking environment, my experiences, and enhanced skills after internship. Bank of Punjab started operating its functions in Pakistan in 16 November, 1989. Bank quickly expanded its operations In Punjab. There are 237 branches of BoP in Punjab. At start BoP was not registered in central bank later in 19 th September, 1994 it started operating as schedule bank. BOP has 405 branches all over the country. As bank of Punjab was established to facilitate government operations, majority of its shares is holed by Government of Pakistan. My internship duration was 6 weeks starting from 13 th June to 27 th July. During My internship I worked in the following departments:  Account Opening Department  Remittance Department  Credit Department  Clearing Department  account Department

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Bank of Punjab (BoP) utilizes the NIFT (National Institutional Facilitation Technologies) for clearing. It collects Cheques, demand drafts, traveler cheques etc. In accounts department different types of are offered to customers. These accounts include Current account, fixed accounts, profit and loss account, saving accounts etc. that are opened individually as well as joint accounts. For opening an account in the bank of Punjab the customer has to fill the account opening form.

If the customer wants to close an account, she/he has to inform the bank authorities and also has to mention the reasons for closing his/her account. When the account of the customer is closed the remaining amount in the account is sent at the address provided by the customer. Upon the closure of the account customer returns the unused cheques. If the customer has not operated his account for two years and has nil balance, Bank has authority to close the account without giving notice to the customer. At the end there are conclusions and recommendations in this report and the references from where I collect the data for completion of my internship report.

5. Main Body: 5.1 Introduction:

Banks are now the main source of funding routine activities, though mainy other financial institutions are working to facilitate public , but bank is one the most popular financial institutions. Each and every person has easy access to banks. Every city of the country has banks that are located very common places and even, now people has access to banking activities through the shops that are located on the corner of a street.

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In section reader will come to know about the internship organization, scope, vision and mission.

The Bank of Punjab In summer vacations task of doing internship is given to students. The purpose of giving such tasks to students is to aware them about the markets situations they may had to face after completion of their degrees as well as gaining practical knowledge and skills related to their chosen organization. I selected a Bank for doing my internship as it was due to the curiosity of knowing the internal working of the bank. I have read many of the banking activities thorough out I-Com and BBA but that was just reading knowledge, I was not aware of practical knowledge. Vision Statement: “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 services in the Agriculture and Middle Tier Markets through a motivated team”

Scope: The scope of doing internship in the Bank is that it will help me for doing job in a bank after the completion of my Bachelors degree. I have gained a lot of knowledge after doing internship. I tried fully to do work in each department so that I may have complete knowledge of banking operations. Objectives:  To gain exposure and practical experience  To analyze the services provided by banks  To handle the customer in a rush situation  To know about the different kinds of customers and their behavior Iffat Azmat Ullah 13170920-018

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 To experience the working environment under Supervisors  To know about the customer’s satisfaction level towards bank  To expand my skills and competences  To develop business contacts, that later help for job  To analyze the my capacity to do job in a bank  To observe the bank’s investment and saving trends

5.2: Over view of the organization: Bank of Punjab is well reputed bank in Pakistan. It was inaugurated in November 1989 by Nawaz Sharif.Its first branc was opened in Lahore. After getting the status of Schedule bank it opened its branch in Islamabad. Now Bop is on of the well reputed bank in Pakistan and made a place im customer’s mind within a short span of time. It has its branches all over the Pakistan. It not only provides commercial banking service ( Local and Foreign accounts, remittances, loans for personal and commercial use) but also Islamic banking facilities through First Punjab Mudarba (FPM). This bank has not much older history like HBL, MCB, United Bank etc. but it has strong network within the country.

Vision Statement: “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 services in the Agriculture and Middle Tier Markets through a motivated team” Core Values: Iffat Azmat Ullah 13170920-018

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Following are the values that Bank of Punjab have:  Customers Ban of Punjab gives first priority to its customers, either individuals or corporations  Profitability Purpose of running a business is to earn profit bank of Punjab also focuses on availing profitable opportunities but its first priority is its customers  Customer Social Responsibility Bank of Punjab also does the activities related to customer social responsibility. It introduces the Green Tractor Scheme for Farmer  Excellence Bank of Punjab does everything in an excellent manner and effectively  Integrity Bank of Punjab performs its functions with integrity and dignity  Respect Bank of Punjab gives respect to each and every customer regardless of its status Competitors of Bank of Punjab: Following are the names of some banks that are continuous competing with BoP in Pakistan:  Habib Bank Limited  National Bank Limited  Allied Bank Limited  Unite Bank Limited  Bank-al-Flah  J.S Bank  Soneri Bank Limited  Faisal Bank Limited

5.2.1: Brief History:

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Bank of Punjab was cooperated on 16 November, 1989 as a non-schedule bank ( banks which are not registered in central bank) later in September 1994 it was given status of schedule bank. Its main branch and head office is located In Lahore.The Bank was inaugurated by Current prime Minister of Pakistan Mr. Nawaz Sharif and first branch was opened in Lahore. In 1994 after becoming schedule bank it opened its branch in Blue area, Islamabad. Since it is operating as schedule bank it has more than 273 branches in province Punjab. At start majority of the deposits were of Government as it was established to facilitate the government of Punjab. Shares of Bank of Punjab are traded in Stock exchange of Pakistan. The Bank of Punjab provides all types of banking services such as deposits in foreign and local currency, Tem deposits with different maturity periods, mortgage loans, Agricultural loans. The Bank of Punjab plays essential role for the betterment of Pakistan’s economy by providing funds for investment and promoting saving trends in the country. Bank collects saving amount for people and providing these funds to facilitate trade activities. Bank of Punjab has contributed in the development of the country by keeping balance between liquidity and productivity.

A wholly owned subsidiary of BoP First Punjab Modarba (FPM) that was established in 1992 and is operated by Punjab Modarba Service(pvt) Ltd. It provides the services of Murabha (Sale Contract), Ijara (lease), Musharika (Partnership) to dacilitate corporate and individuals.

5.2.2 Nature of organization:

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Bank of Punjab is a financial service provider Organization. It provides all types of commercial banking and related facilities in Pakistan. BoP is engaged in lending and borrowing of money accept marketable securities at discount, deals with bill of exchange, Certificates of Deposits (CDs), Promissory notes etc. Bank also deals with foreign exchange including foreign notes and issue on commission. Bank of Punjab has successfully established the ideological based by getting customer loyalty, by providing services with dedication and developing a wide range of products (Services) for customers. Individuals, corporate sectors and Government have access to bank’s services. State Bank of Pakistan has appointed BoP as an agent for the collection of taxes from Punjab. This appointment is given to facilitate the provincial and federal government for the betterment of the tax collection system. BoP provides debt securities, agricultural finance, corporate investment banking, retail and consumer banking, treasury Services. Bank of Punjab is also involved in purchasing and selling of foreign exchange, it provides the services of underwriting for business, deals in stocks, shares, debentures, bonds. Bank of Punjab creates its deposits in other banks and earns interest that are part of its income. It also generates income by earning dividends on its investments.

5.2.3: Business volume, reward honors & success stories etc. during last 5 years: 5.2.3.1: Business Volume: The Bank of Punjab had shown a dramatic increase after the realization of losses in 2009. Capital adequacy ratio in 2009 was 1.5% but in 2015 it was 11.33%.

Items

2011

2012

2013

2014

2015

Investment

92,492,813

129,552,044

23,973,891

154,943,890

176,079,79

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Advances

102,107,501

149,565,885

157,239,598

3 170,273,415 219,356,02

Borrowing Deposits

24,963,566 237,896,692

44,683,826 266,055,761

22,802,482 306,560,694

44,742,624 342,290,396

0 55,236,429 374,960,98

Reserves Profit EPS

1,914,956 294,924 0.56

1,187,433 1,744,556 3.30

1,539,659 1,914,720 2.33

2,081,243 2,841,535 1.97

6 2,329,001 4,717,799 3.03

5.2.3.2: Rewards and honors: 1. Excellence Award by the Central Board of Revenue: The Central Board of Revenue gave "Excellence Award" to the Bank of Punjab in respect of the contribution made by the bank towards Government exchequer. 2. 3rd Kissan Time Awards: In appreciation of Bank's contribution in growth and development of agricultural sector, the Bank honored with "Top Bank for Agriculture Loans" and "Best Bank Crop Insurance" under 3rd Kissan Time Awards year 2006. 3. Best Corporate Report Award: Annual Report of the Bank for the year 2005 won 5th position for "The Best Corporate Report Award" for the financial sector, decided mutually by the Institute of Chartered Accountants of Pakistan (ICAP) and the Institute of Cost and Management Accountants of Pakistan (ICMA). 4. 16th Bolan Excellence Award: The Bank was awarded Best Bank Award under 15th Bolan Excellence Awards distributed in 2006. 5. Achievement Award:

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The Lahore Chamber of Commerce & Industry (LCCI) awarded the Bank "LCCI Achievement Award" 2006 5.2.3.3: Success Stories: Bank of Punjab (BoP) president Naeemuddin Khan said that BoP has increased its deposits 117% in last six years. Bank of Punjab was also involved in major Government Projects. It provides finance for Lahore and Islamabad metro project.

5.2.4: Product/Service Line: Bank of Punjab provides the following services to individuals and businesses.

5.2.4.1: Deposits Products: 1.

BoP Asaan Account:

This is the account for low risk individuals there are too many formalities for opening an account. This account can be opened with minimum requirement.  This account can be opened with RS.100 initial amount  Can be opened as minor, Individual and Joint  No service charges  Cheque book of 25 leaves is free 2.

BoP Basic Banking Account:

This account is specially offered for students, pensioners, benevolent fund grant.  This account can opened with 100 minimum amount  No service charges  Free e-banking facility  Account remains nil for 6 months, account will be closed  2 deposit transactions free of charges Iffat Azmat Ullah 13170920-018

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3.

BoP Tijarat Account:

This account is maintained by business institutions including partnership, ltd. Companies, Trusts etc.  Monthly average balance must 25000.  Free online facility  Issuance of cheque book is free  Free locker facility 4.

FCY supreme Current Account:

This is foreign currency current account, and is available to those who meet the criteria described by bank. Minimum balance is USD 10,000, Euro 8,000.  One cheque book per month is free.  Free locker facility  Availability of free SMS facility  Free issuance of DD/TT in PKR (Rs.5/-)

5.2.4.2: PLS saving accounts: 1. BoP Pehly Munafa Deposit Scheme: This is PLS-Saving bank account all the customers who are illegible to open an account can avail this opportunity.  Minimum amount of deposit is 50,000/ No limit of maximum amount  Term of these deposits is 3, 6, 12, 15 and 18 months.  Issuance of ATM card is free 2. Corporate Premier Term Account:

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This account is offered to business entities to meet their need. This account can be opened jointly or individually.  Minimum amount of deposit is 500m  No limit for maximum amount  Terms periods are for 1, 3, 6 months, 1, 5 years or more  Profits are paid at maturity with principle amount 3. Bai Misaal Term Deposit Account:

 This is fixed deposit account  Minimum criteria of investment is 100,000 / No limit for maximum amount  1 and 2 years of maturity are available

5.2.4.3: PLS Chequing Accounts: 1. PLS Saving Account: This account is available for all type of customers; individuals, corporations, Government institutions etc.  Profit on this account is calculated by monthly average balance method  Payment of profit is made after 6 months  Free e-banking facility to check balance 2. PLS Saving Profit Plus Account: General public, companies, provincial/federal government institutions can operate this account. This account can be opened jointly.  Deduction of Zakat and withholding taxes are applicable  Average balance method is used for profits Iffat Azmat Ullah 13170920-018

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3. Senior Citizen Saving Account: This account is offered to senior citizens; who are 55 years or above and illegible as per bank’s criteria.  Payment of profit is made on monthly basis  No limitation of debit/credit transactions  Priority in utility bill payments, counter services  Free issuance of free cheque book of 25 leaves 4. BoP FCY saving Account:

This is a foreign current account and only those customers who meet criteria of bank to open FCY account can operate this. Minimum limit of deposit is USD 15,000 or Euro 10,000.  Free Debit and Credit account for PKR account  Issuance of cheque book per month is free  Free locker facility  Payment of utility bill is free 5. Gharyaloo Saving Account: This is the bank account only for females but it can also be opened jointly with their husband.  This is a chequing account  Free e-banking facility  Priority for utility bill payments  Unlimited debit and credit transactions 6. PLS- Salary Plus Account:

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This is a current account for salaried persons who work in an organization that pays salaries through Bank of Punjab.  This is a non-profit bearing account  First Master Card is freely issued for the first time  Free collection of outstation cheques  Facility to avail advance salary loan

5.2.4.4: Commercial Finance: 1. Running Finance 2. Demand Finance 3. Car Dealers Financing Scheme 4. Fertilizer dealer financing scheme 5. Karobar Barhao Scheme 6. Financing Scheme – purchase of office/shop

5.2.4.5: Consumer Finance: 1. BoP Quick Cash: 2. BoP Car Loan 3. BoP House Loan: 4. BoP Aasaish Loan:

5.2.4.6: Agriculture Scheme: There is large amount of products that are offered by Bank of Punjab to promote agriculture in Pakistan. 1. Kissan Dost Agricultural Scheme: This loan is offered to those farmers who have minimum 10 acres agricultural land. The is person who has no default record can enjoys the benefit of this scheme.  Minimum of amount of loan is 500,000/- and maximum is 30,000,000/ 6 month KIBOR + 600 BPS without floor or caps rate Iffat Azmat Ullah 13170920-018

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2. Kissan Dost Tracter Scheme 3. Form Transport Scheme 4. Live Stock Development Scheme 5. Islah-e-arazi Scheme 6. Commercial Agro Services 7. Zarkaasht Drip Irrigation System 8. Group Financing to small Farmers 9. Markup of Schemes 10.Agri Finance Branches 11. Cold Storage Finance Facility 12.Kissan Dost Mechanization Support Scheme Such schemes are offered to framers to actively accelerate their procedure of producing crops. Purpose: Purpose of such schemes is to facilitate customers for buying inputs e.g. seed, fertilizers.

5.2.4.7: Electronic Banking: E banking is the facility of having cash 24 hours due to the modern technology and internet. It provides non-stop banking accessibility. 1. Visa Debit Card: 2. Internet Banking 3. ATM network 4. BoP Quick Pay 5. Call Center

5.2.4.8: Islamic Banking:

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Bank of Punjab not only deals with commercial banking but also provides the Islamic banking services to its customers. Bank of Punjab owned first Punjab Modaraba (FPM). For facilitating customers with Islamic banking facilities Bank of Punjab launches “TAQWA” Islamic Banking. Under this bank provides the following services to customers. 1. Basic Banking Account 2. Current Account 3. Profit and loss Sharing Account 4. Riba Free Certificates (Term Deposits) 1. Basic Banking Account: This banking account is based on Islamic principle Qard-e-Hasana, in it Bank is the borrower and the depositor is the lender. This is especially for low income people. Features:  This account can be opened with 1,000/- initial deposit  No limitation of minimum balance, if remai...