University of Education
Division of management and administration sciences
Lower Mall Lahore
Internship Report
THE BANK OF PUNJAB
A REPORT SUBMITTED TO THE UE BUSINESS SCHOOL, UNIVERSITY OF
EDUCATION, LOWER MALL CAMPUS, LAHORE IN THE PARTIAL
FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF BACHELOR
OF BUSINESS ADMINISTRATION (4 YEARS)
Submitted by:
BSF2004430
Muhammad Haseeb Asif
Session: 2020-2024
03 May, 2024
University of Education
Division of Management and Administrative
Science
Lower Mall Campus, Lahore
LETTER OF UNDERTAKING
This internship report was submitted by
Muhammad Haseeb Asif
S/o
Muhammad Asif Roll no. BSF2004430 for the partial fulfillment of the requirements for
the degree of
BBA(Hons.)
Session (2020-2024)
With specialization in
BANKING AND FINANCE
and is hereby accepted by the evaluation committee
Internship supervisor
___________________
HOD/ Coordinator
___________________
External Examiner
___________________
Director
___________________
Main Haveli Lakha Branch
Phone#: 044-4775740
Email: bop0289@bop.com.pk
BOP/MAIN/SKP/ 18/62
August 17, 2023
INTERNSHIP CERTIFICATE
This has reference to your request for 06 six week Internship training of Mr.
Muhammad Haseeb Asif who is a student of your university.
It is certified that Mr.Muhammad Haseeb Asif S/O Muhammad Asif having
CNIC 35301-6333880-7 Resident of Railway Road P/O Haveli Lakha & Distt.
Okara has completed his 06 weeks internship training at our branch w.e.f
19-06-2023 to 17-08-2023. During this period he was strictly under my supervision
and control.
His conduct, attendance and attitude towards leering was very good. I wish him a
prosperous future. He work on following fields and shown excellent skills of
learning
 Account opening and dormant activation
 Profile updation of accounts
 Call deposit and pay order issuance
 General banking related to operations.
Regards,
Moeen Ahmad
Moin ul Atiq
Branch Manager
Branch Operation Manager
Pakpattan Road, Haveli Lakha
Dedication
I dedicate this project to Allah Almighty My Creator, my strong pillar, my source of
inspiration, wisdom, knowledge, and understanding. I also dedicate my work to my Parents,
who have supported me all the way and their help and encouragement have made sure that I
have given all my best to finish this work that I started. My love for you can never be
quantified.
Acknowledgment
I would like to express my gratitude to Almighty Allah for His great kindness to us. After
that, I would like to express my respect and gratitude to my parents for all that done for me. I
am what l am today all because of them.
I want to give special thanks to Prof Faran Ali, UE Business School, and the University of
Education for being my supervisor of the Internship Program.
I am also thankful to Mr. Moen ul Atique, operations manager, Mr. Tariq, Business
development officer, and Mr. Waqas Sattar of Cash department.
My sincere gratitude also goes to all other employees of The Bank of Punjab. In the end, I
express my overall gratitude to my department for providing me with such a great
opportunity of life to learn from the best.
Executive Summary
The Department of Business Administration demands every student of the BBA program to
go through from 6 to 8 week internship program and have to submit a report based on the
observations and work done during the training process. It is the review of any organization
currently running its business, having its competitors. The study of the functions of the
Finance department is the main purpose of this internship.
I have completed my bachelor's degree in Business Administration from University of
Education Lower Mall, and an internship is compulsory for this degree because the
University has recommended the internship. Internship helps us to get practical knowledge of
the field and we get a chance to implement our knowledge which we have gotten from our
sixteen years of education. We become aware of the field and its requirements and which
types of abilities we should have so that we can perform well in the field.
My internship program period is from 19th June 2023 to 17th August 2023 at BOP main
branch Haveli Lakha.
During my stay at the Bank of Punjab, I got the opportunity to work in various departments
of Bank including operation, credits, account opening, clearing, and remittance. In the
operation department I noticed how banker's cheques are issued and paid. Similarly, in
clearing department I observed that how cheques are cleared and possible reasons of unpaid
of cheques. I observed that account opening is a most crucial department in Banking. It is
referred to as a gate of entrance to the bank. The bank is advised to remain more vigilant by
the State Bank of Pakistan while opening account in bank. The most important step is Know
Your Customer and Anti Money Laundering in account opening. In the credit department, I
tried to understand all the financing products.
The main purpose of internship is to learn, by working in practical environment and to apply
the knowledge acquired, during the studies, in a real-world scenario to tackle problems. The
Bank of Punjab has highly qualified and experienced professionals. Like all banks, BOP also
defined their visions and missions. It has its values and objectives which the bank has to
achieve. It has many branches located in different areas. BOP was established on October 30,
1989 through an act of the Provincial Assembly.
Report starts with the industry profile which explain in brief or comprehensive summary of
essential industry information that offers a perspective on the economic health of the
industry. Company profile tells about the Bank of Punjab, its history, vision and mission
statement, and information about its other services and products. Then there is the description
of the business processes which is a collection of related, structured activities or tasks that
produce a specific service or product serve ( a particular goal) for a particular customer or
customers.
The business processes of BOP main branch Haveli Lakha, including Retail and Commercial
Banking, Financial Inclusivity and SME Empowerment, Cash Management Services, and
Corporate Banking processes, are shown in flowcharts as a sequence of activities with
relevant rules based on the data in the process. The next section is about the Organizational
Structure of The Bank of Punjab and the next section contains facts and the methodology of
the internship program as what I have learned during an internship, in this, I have discussed
my duties, accomplishments, new knowledge acquired, problems encountered and in last how
this experience impact on my career. Then the SWOT Analysis of the Bank of Punjab. After
the SWOT analysis, The last section is about the conclusion and recommendations.
Table of Content
Brief Introduction of Banking Sector ……………………………………………………… 3
Overview of the Organization ………………………………………………………............. 5
History of the bank……………………………………………………………………………... 5
Vision statement and mission statement .…………………………………...…………………. 6
Corporate Information ………………………………………...……………………………...... 7
Corporate objective ……………………………………………………………………………. 8
Policies of BOP ………………………………………………………………………………... 9
Competitors…………………………………………………………………………………...... 10
Product Lines…………………………………………………………………………………… 10
Organization Structure ………………………………………………………………………. 20
Organizational Hierarchy Chart ……………………………………………………………...... 20
Number of Employees…………………………………………………………………….……. 20
Main offices…………………………………………………………………………………...... 20
Brief Introduction of all Departments………………………………………………………...... 20
Comments on the Organizational Structure……………………………………………………. 24
Plan of Internship Program ………………………………………………………………...... 25
Introduction of Branch ………………………………………………………………………… 25
Starting and Ending Dates of Internship ………………………………………………………. 25
Name of Department …………………………………………...…………………………….... 25
Duration of Training …………………………………………………………...…………......... 25
Training Program ………………………………………………………….…………………. 26
Operations Performed by the Department ……………………………………………………... 26
Tasks Assigned to me …………………………………………………………………….......... 26
Structure of Finance Department …………………………………………………………… 30
Department Hierarchy …………………………………………………………………………. 30
Number of Employees Working in Finance Department………………………………………. 31
Marketing Functions …………………………………………………………………………. 33
4 Ps of the Organization ……………………………………………………………………….. 33
Products ………………………………………………………………………………………... 34
Pricing Strategies ………………………………………………………………………………. 34
Promotional Strategies ………………………………………………………………...………. 35
Distribution Channels (place) …………………………………………………………….......... 35
Human Resource Management ………………………………………………………………35
Employee Recruitment and Selection ………………………………………………………….35
Training and Development …………………………………………………………..................36
Performance Management ………………………………………………………………...........37
Compensation Management ……………………………………………………………………37
Financial Analysis …………………………………………………………………………….38
Ratio Analysis ………………………………………………………………………………….38
Vertical Analysis ……………………………………………………………………………….40
Horizontal Analysis …………………………………………………………………………….40
SWOT Analysis ……………………………………………………………………………….41
Strengths ……………………………………………………………………………………......41
Weaknesses …………………………………………………………………………………….42
Opportunities ……………………………………………………………………………….......42
Threats ………………………………………………………………………………………….43
Conclusion ……………………………………………………………………………………..43
Recommendations …………………………………………………………………………….44
References
45
………………………………………………………………………………….......
46
Annexes ………………………………………………………………………………………...
Brief Introduction of Banking Sector
At the time of Pakistan's formation on 14h August 1947, there were adequate banking
services available in the forming areas. Before the formation of Pakistan, there were nearly
3500 branches in Sub Continent, out of these 3500 branches, 1500 branches existed in
Pakistan's territory.
It was agreed, at the time of the formation of Pakistan, that the Reserve Bank of India should
continue its functions in Pakistan territory until September 30, 1948 as the central bank of
Pakistan. It was also agreed that Indian currency notes would use as the legal currency of
Pakistan until September 30, 1948.
After the independence, the relationship between Pakistan and India was not good. Most
banking was in the land of Hindus and they were shifting their offices and assets to India,
which resulted in the downfall of the banking sector in Pakistan. The number of banking
offices in Pakistan reduced to 200 on June 30, 1948. Imperial Bank of India was agent of The
Reserve Bank of India, has started closing down its branch network in Pakistan. For making
essential payments to Pakistan, the Reserve Bank of India refused to make advance money to
Pakistan which was a great trouble for the economy of Pakistan. Pakistan's share of Rs.75
billion was also held with the Reserve Bank of India. At the stage of hopeless state affairs, it
was agreed between the two countries the Indian central would serve Pakistan as a monitory
authority till June 30, 1948.
Nationalization:
Commercial banking grew favorably in Pakistan until 1974. Under the nationalization policy
implemented by Zulfiqar Ali Bhutto's government, thirteen banks were brought under full
government control. The considerations behind nationalization were:
 For uniformity in the policy of the commercial banks.
 To make the credit policy of the commercial banks more purposeful and effective. It
acts as an agent of the State Bank of Pakistan.
 To make the best use of the funds available at the disposal of these banks for the
economic development of the country.
 To eliminate unhealthy and uneconomic commercial banks.
 To develop a strong money market in the country.
The government didn't pay any attention to developing the banking sector, lending decisions
were not always commercially motivated, and many billions of rupees were funneled out of
the financial system as "bad loans".
Privatization:
In 1991, the Bank Nationalization Act was amended, and 23 banks were established - of
which 10 were domestically licensed. The Government of Pakistan was not satisfied with the
performance of nationalized banks. The areas which were severely criticized are the falling
standard of banking service. The complaints about the services like delay in home
remittances, dispatch of cheques, drafts, inefficient counter services, over staffing, bad debts,
unionism of the banks, number of bad debts, etc.
3
The Government, therefore, decided to privatize the banks. A Privatization Commission was
set up on January 22, 1991.
Banks supervision was strengthened substantially. Lending to small and medium enterprises
had previously been neglected, whereas consumer and mortgage finance had not developed
prior to reforms. Legal impediments and delays in the recovery of bad loans were streamlined
in 2001. There
are now 9,348 bank branches spread throughout the country, catering to the needs of some 28
million deposit account holders.
Types of banks







Saving Banks
Commercial Banks
Industrial Banks / Development Banks
Central / Federal / National Bank
Co-operative Banks
Consumers Banks
Exchange Banks
4
Overview of The Organization
History
The Bank of Punjab started its functions on November 15, 1989 with the inauguration of its
first branch in Lahore. The Bank of Punjab was given the status of a scheduled bank in 1994
and now is working as a commercial bank with almost 273 branches in Punjab. Its primary
functions are accepting the deposits of the people and lend it to the persons who are in need
of finance for their business to commence and enhance. It also deals with customers' foreign
currency, remittance, trade, industry, and agriculture sections to provide better banking
facilities to its clients.
The Bank of Punjab also provides and offers attractive rates and percentages of profit on all
kinds of deposits, investments, opening of foreign currency accounts, and handling the issues
related to foreign exchange business like import & export and remittances, financing, trade,
and industry for working capital requirements.
In the 1990's the bank provided two major services to the nation on the national scene the
appearance of the Bank of Punjab as a new bank.
(i) The saving base of the economy has effectively enlarged and hence the investment
opportunities have increased.
(ii) The services of the bank in fact of severe competition have improved considerably so
that now consumer are left with extensive choices to do or undo their business relations with
these banks keeping in view the quality of their services.
Overview
The Bank of Punjab is a Pakistani bank which is based in Lahore, Pakistan. It serves Pakistan
and functions as an International Bank and is one of the prominent financial institutions of
the country holding AA ratings from the Pakistan Credit Rating Agency (PACRA).
The Bank of Punjab was founded by Tajammal Hussain and it functions as a Scheduled
Commercial Bank, with a network of over 587 branches in Major Business centers
throughout the country. It is the seventh-largest Commercial Bank in the Country. It provides
a wide range of banking services including deposits in Local Currency; client deposits in
foreign currency; Remittances; and advances to Business, Trade, Industry and Agriculture.
First Punjab Modaraba (FPM), a wholly owned subsidiary of the bank, was established in
1992, and is being managed by Punjab Modaraba Services (Pvt) Ltd.
Currently, the Bank of Punjab is headed by Zafar Masud who joined as President and CEO
on April 16, 2020, after being appointed by the Government of Punjab, Pakistan earlier and
later being approved by the State Bank of Pakistan.
5
AWARDS & ACHIEVEMENTS:
 Excellence Award By The Central Board Of Revenue
The Central Board of Revenue presented "Excellence Award" to the Bank of Punjab
in recognition of the contribution made by the bank towards Government exchequer.
 3rd Kissan Time Awards
In recognition of Bank's contribution in development and growth of agricultural
sector, the Bank honored with "Top Bank for Agriculture Loans" and "Best Bank
Crop Insurance" under 3rd Kissan Time Awards year 2006
Vision
"Your banking partner in creating value and improving lives".
Mission
"Meet customer needs through innovative technology products/services to drive business
growth while promoting financial inclusion, diversity and prosperity across the nation with a
motivated team through a culture of excellence and empathy”
Core Values
The intrinsic values, which are corner stones of BOP are;





Empathy
Teamwork
Innovation
Meritocracy
Excellence
to ensure best in class customer service
6
Corporate Information
President & CEO
Mr. Zafar Masud
Chief Financial Officer
Mr. Nadeem Amir
Company Secretary
Mr. Kamran Hafeez
Auditors
EY Ford Rhodes (CA)
Legal Advisors
Salim Baig & Associates
Share Registrar
CORPLINK (Pvt) Limited,Wings Arcade, 1K, Commercial, Model Town, Lahore
Registered Head Office
BOP Tower, 10-B,Block E-II, Main Boulevard
Gulberg III Lahore
UAN
111-200-100
FAX
(042) 35783713-35783975
Registration Number
0020565
NTN Number
0800543-5
Website
www.bop.com.pk
7
Corporate Objective
The objective of BOP is to promote economic activity to empower the people of Pakistan and
create employment opportunities, bringing upon it an onerous responsibility to deliver results.
Bank's policies are focused on:
 Enhancing small farmer's access to institutional credit and supporting national
strategy for increasing agricultural output by funding farm and non-farm projects.
 Promoting the SME sector by providing financial solutions to small and mediumsized entrepreneurs.
 Funding projects yielding economic benefits to the country.
 Supporting projects that empower women.
 Providing banking facilities in the unbanked areas, particularly in the province of
Punjab.
 Providing e-banking services to enable the Bank's customers to have fast and easy
access meeting their banking requirements by installing the most modern and efficient
technological applications that satisfy customers' expectations.
 The Bank of Punjab is a market leader in Corporate Social Responsibility; spreading
numerous social and public welfare initiatives. As a treatment to BOP's efforts, Asia
money - a prestigious international organization has awarded Bop the " Best Bank for
CSR in Pakistan" award for the Year 2022.
 Bank will provide free of cost education insurance coverage to students amounting to
Rs. 20,000/-per month for 24 months in case of natural death.
 BOP provides facility to remit foreign exchange to educational institutions abroad on
behalf of students.
8
Policies of the BOP
 Credit Policy:
This policy outlines the BOP's criteria for granting loans and credit facilities,
including factors such as creditworthiness assessment, loan approval process, loan
pricing, collateral requirements, and risk management practices.
 Risk Management Policy:
BOP have comprehensive risk management policies to identify, assess, and mitigate
various types of risks they face, including credit risk, market risk, liquidity risk,
operational risk, and compliance risk. These policies define risk tolerance levels, risk
assessment methodologies, risk monitoring mechanisms, and risk mitigation
strategies. And also identifies the responsibilities of Board of Directors regarding
these risk
management.
 Anti-Money Laundering (AML) and Know Your Customer (KYC) Policy:
Banks are required to have policies and procedures in place to prevent money
laundering, terrorist financing, and other illicit activities. AML and KYC policies
include customer due diligence, ongoing monitoring of customer accounts, reporting
suspicious transactions, and compliance with applicable laws and regulations.
 Customer Service Policy:
This policy outlines the bank's commitment to providing quality customer service,
including guidelines for handling customer inquiries, complaints, and dispute
resolution. It may cover aspects such as account opening procedures, transaction
processing, privacy and confidentiality, and customer communication channels.
 Information Security Policy:
BOP has policies to protect sensitive customer information and maintain the security
of their information technology systems. These policies address data protection,
access controls, security protocols, incident response procedures, and compliance with
cyber security regulations.
 Corporate Governance policy:
The Bank of Punjab establish corporate governance policies to ensure effective
oversight, transparency, and accountability in their operations.
These policies define the roles and responsibilities of the board of directors,
management, and committees, as well as guidelines for ethical behavior, conflicts of
interest, and disclosure of information.
 Compliance Policy:
BOP is required to comply with a wide range of laws, regulations, and industry
standards. Compliance policies outline the bank's commitment to complying with
these requirements and provide guidance on regulatory compliance, internal controls,
reporting obligations, and ethical conduct.
9
Competitors
The competitors of the Bank of Punjab are the other commercial banks in Pakistan are:
o
o
o
o
o
o
o
o
o
o
Muslim Commercial Bank Limited
Soneri Bank Limited
United Bank Limited
Allied Bank Limited
Askari Bank Limited
Faisal Bank Limited
Standard Chartered Bank Limited
Habib Bank Limited
Habib Metropolitan Bank Limited
Bank Al-Habib Limited
Product line
NO
SCHEME/PRODUCT
TENURE
01
BOP MUNAFA-HI-MUNAFA - III.
PLS – TERM DEPOSIT
02
BOP BAI MISAAL TERM DEPOSIT.
PLS – TERM DEPOSIT
PLS – TERM DEPOSIT
04
BOP PAHLAY MUNAFA DEPOSIT
SCHEME
BOP SENIOR CITIZEN TERM DEPOSIT.
05
BOP KISSAN DOST TERM DEPOSIT.
PLS – TERM DEPOSIT
CORPORATE PREMIER TERM
ACCOUNT
BOP YOUNG LIONS SAVINGS
ACCOUNT
BOP SENIOR CITIZENS SAVING
ACCOUNT.
PLS – TERM DEPOSIT
03
06
07
08
PLS – TERM DEPOSIT
PLS – RUNNING ACCOUNT
PLS SB – RUNNING
ACCOUNT
PLS SB – RUNNING
ACCOUNT
PLS SB – RUNNING
ACCOUNT
PLS SB – RUNNING
ACCOUNT
09
BOP GHARAYLOO SAVING ACCOUNT.
10
BOP ZIADA MUNAFA SAVING
ACCOUNT.
11
BOP PLS SUPREME SAVING ACCOUNT
12
BOP FCY SUPREME CURRENT &
SAVING ACCOUNT. US$, EURO & U.K.
Pound
PLS FCY - RUNNING
ACCOUNT
13
CORPORATE PREMIER ACCOUNT
PLS – RUNNING ACCOUNT
14
BOP TIJARAT ACCOUNT
CD – RUNNING ACCOUNT
10
 Consumer banking
 Agriculture loans
 Home remittance
MAIN FEATURES OF EACH PRODUCT
1) BOP MUNAFA-HI-MUNAFA – III:
This is a term deposit product. The term is from 1 month to 2 years and the profit is
paid on a monthly basis. The minimum amount of deposit is Rs.100, 000/-. The rate
of profit is from 7.0 % p.a. to 11.35 % p.a. depending on the tenure which is higher
than Bank's normal term deposits.
2) BOP BAI MISAAL TERM DEPOSIT:
This is a term deposit product. The term is from 1 year to 2 years and the profit is paid
on maturity. The minimum amount of deposit is Rs.100, 000/-.
3) BOP Pahlay Munafa Deposit Scheme:
This is a Fixed Deposit product allied with state-of-the-art BOP modern banking
facilities with high rate of provisional profit paid in advance. The tenure will be 3, 6,
12, 15 and 18 months with free ATM/Debit Card.
4) BOP Senior Citizen Term Deposit Scheme:
This is a Fixed Deposit product with high rate of profit paid on monthly basis with a
fixed tenor of one year only. The product is available for senior citizens of age 55
years & above who are eligible to invest in term deposit as per Bank's criteria.
The account can be opened singly or preferably jointly (husband & wife) provided
either of them is of 55 years or above (Retirement is not a condition of eligibility)
5) BOP Kissan Dost Term Deposit Scheme:
This is a Fixed Deposit product with high rate of profit paid on maturity along with
principal amount with a fixed tenor of six months & one year.
6) Corporate Premier Term Deposit:
General Corporate Entities
Time Period
Percentage
01 Month
03 Months
06 Months
5.00%
5.50%
5.75%
01 Year
6.00%
11
05 years & above
6.50%
7) BOP Young Lions Savings Account:
The product is available for all children less than the age of 18 years to open PLS
Minor saving account (checking/running) with their Parent/Guardian as per our
Bank's criteria. The account will be opened with Parent/Guardian i.e., Child
(M)/Guardian (G). The product carries all characteristics/conditions/rules of PLS SB
account except profit will be calculated on daily product basis and payment of profit
shall be paid on monthly basis.
Who can invest?
Children (less than the age of 18 years) would be eligible to open a Minor Bank
Account with their Parent/Guardian. This is a Saving Account product with a slightly
better profit rate with other value-added benefits. The rules of operations will apply as
specified in BOP Instructions Circular No. 93/68 dated Dec 16, 1993.
Amount of deposit
o Minimum deposit to open account as per bank policy for PLS saving accounts.
o No Maximum deposit limits
Profit rates/calculation/Disbursement of profit
The BOP Young Lion Saving Account is a profit bearing account. The present
applicable profit rate is 6 % per annum on all the balances without any lower or upper
limit.
Value additions
o Free issuance of first ATM Card. However, for renewal, charges will be
applicable as per bank's schedule of charges.
o Free first 25 leaves cheque book will be issued at the time of account opening.
This will be one time facility.
o Free access will be allowed to view account statements through BOP eBanking facility.
o On opening of the A/C with Rs.50,000/- and maintaining it for 30 days at
least, a free Gift will be given to the Young Lion as a token of becoming BOP
Customer at the discretion of the management.
o No Account maintaining charges
8) BOP Senior Citizens Saving Account:
This is a saving bank product available for all senior citizens i.e. persons of 60 years and
above who are eligible to open a saving account as per our Bank's criteria.
9) BOP Gharyaloo Saving Account:
12
This is a saving bank product available for all females who are eligible to open a
saving account as per our Bank's criteria. The account can be opened singly or jointly
with husband. This product is designed to attract procure deposit/savings of ladies
particularly housewives of expatriates & students.
10) BOP Ziada Munafa Saving Account:
This is a saving bank product available for general public i.e. persons who are eligible
to open a saving account as per our Bank's criteria. The account can be opened singly
or jointly. This product is designed to attract procure deposit/savings of general public
particularly salaried and small investors.
11) BOP PLS Supreme Saving Account:
This is a saving account product available for all customers who are eligible to open a
PLS SB account as per our Bank's criteria.
12) BOP Tijarat Account:
This is a current account product available for all customers who are eligible to open a
current account as per our Bank's criteria.
Consumer Banking
BOP brings products that serve your need, whether you need cash or thinking of buying of
car of your choice. We are here to serve your financing needs.
 Auto Finance
 Home Finance
 Personal Loans
13
1) Auto Finance
Particulars
Purpose
Types of Vehicles
Age of Vehicle
Target market
Tenor of Lease
Variable Pricing
Market Value of the
vehicle
Bank Policy
Amidst rising car prices and record inflation, strong emergence of
used car segment is the future of the auto industry.
All locally assembled/manufactured brand new/used vehicles
Used Car up to 4 years age.
Age will be determined from the date of invoice of the vehicle
Only leasing to individuals
Up to 5 years
Lease period for 1000CC below vehicles may be considered up to 3
years considering the usable life of such brands.
Ask side 1 year KIBOR plus + 4% spread
Up-to 1000 CC: 20% LKM of Market Value (MV)
Above 1001 CC: 30% LKM of Market Value (MV)
Evaluation report of PBA-approved Evaluator OR
Valuation of Used
Evaluation form 3S Dealer OR
Vehicle based on the
Evaluation from Digital Platforms i.e. Pak Wheels, OLX and Car First
following
etc.
Processing charges
(Including FED)
Value charges of
vehicle
Vehicle Insurance
Payment
BTF
Title of vehicle
Basic required
Documents
For Men Rs. 6,000/- per case
For Women Rs. 4,000/- per case
As Actual
Comprehensive insurance will be obtained through the insurance
companies on bank's panel as per Auto loan policy.
Payment will be made to the dealer/ seller after transfer of the vehicle
in favor of the Bank of Punjab.
BTF is not allowed whereas Sales & Leaseback is allowed in used
car segment.
Title of vehicle to be clear. In case of used vehicles, FSV shall be
considered as the final value/ price of the vehicles, based on the
evaluation reports of the bank's approved evaluators. However due
consideration shall be given to LKM in such cases to keep a balance.
Verification agencies will ensure proper vehicle checkup and will
submit their verification report on the basis of fair judgment.
Copy of valid identity document (CNIC/SNIC/NICOP)
Latest Salary slip (employer certificate, if salary slip is not provided
by employer) in case of variation in salary additional supporting
documents to be provided
One recent photograph
14
Bank statement for last 6 months
Lease Key
Money(LKM)
Minimum Job/
Business Experience
Debt Burden
Minimum Monthly
Gross Salary
Age Requirement
Debt Burden
Vehicle Insurance &
Tracker Cost
Security
Pre-Payment/ Early
Termination/
Balloon payment
Late payment
penalty
The minimum LKM to be deposited is 30%
Permanent employee with minimum 1 year of job experience.
Contractual employees with 2 years of job experience
Should not exceed 40% of disposable income.
Permanent employee Rs. 30,000/Contractual employee Rs. 40,000/Age between 21 (at the time of application) and 60 Years or
superannuation (whichever is earlier)
Should not exceed 40% of disposable income.
First year insurance in full and minimum LKM. Total monthly rental /
installment includes principal, mark-up and insurance amount.
Vehicle shall be registered in the name of BOP as per lease/ loan
agreement.
Further the vehicle financed by the bank shall be properly secured by
way of hypothecation.
Comprehensive insurance of the lease/ loan/ financed vehicle.
5% of principal outstanding against lease/ loan account.
Re. 1/- per thousand per day of installment amount from due date till
actual payment.
15
2) Home Finance
BOP "APNA GHAR" Housing Finance Scheme
Purchase of Constructed House/ Purchase of Plot and construction, thereon/
Construction of house on selfowned Plot/ Renovation of house
Finance amount :
Term of the finance:
Mark-up type:
Loan to value ratio:
Processing Fee:
As per Schedule
As per Schedule
As per Schedule
As per Schedule
SI/ SEP = PKR 8,000/Others = PKR 10,000/-
As per Repayment Schedule: The monthly installment amount may vary with the
change in KIBOR rate at the time of annual resetting.
3) Personal Loan:
Salient Features
o
o
o
o
o
o
o
Tenure of loan from 1 to 5 years
Fixed mark up for complete tenure
Easy monthly installments
Financing Limits from (50,000) to (1,000,000)
No pre-payment penalty
Avail loan with minimum documentation
Life assurance is also provided
Basic required Documents
o Copy of valid computerized national identity card (CNIC)
o Latest salary slip
Eligibility Criteria
o Age limit 19 years to 59 years
o Minimum Gross Salary 17,500 monthly
16
Agriculture Loans
Particulars
Purpose
Target Market
Bank's Policy
To provide short-term facility to the Individual & Corporate
farmers for purchase of Farm Inputs (Seeds, Fertilizers,
Pesticides, Fungicides etc)
The scheme shall provide short-term facility to the
a) Owner + family land (only spouse & Children)
b) Owner / Self-cultivator/resident farmers

What is
Eligibility
Criteria
Amount of
Facility
Markup
Insurance
Security
Resident/Self Cultivating farmers having cultivated
agriculture land minimum 10 Acres
 Should not be a defaulter of any Financial Institution
 Should have security free of all encumbrances to be
offered as collateral
 Should have Computerized National Identity Card
 Age Limit: 21-60 years (till maturity)
Production Loan
(Running Finance Facility)
Minimum Rs. 500,000/- & Maximum up to Rs. 30,000,000/- The
limit will be determined on the basis of crop pattern and area
under cultivation.
6-month KIBOR (H) + 600BPS without floor or cap rate P.A.
The Crop Insurance is mandatory for all borrowers availing
production loan from BOP for all crops including five major
crops i.e. Wheat, Cotton, Sugarcane, Maize and Rice and minor
crops.
 Charge on Agri Land Through pass book
OR
 Mortgage of Urban/Commercial Property
OR
 Liquid security in shape of Bank's Fixed Deposit
Receipts, Defense Saving Certificate/National Saving
Certificate or Regular Income Certificate
 Two written satisfactory market verified reports
17
Particulars
Approved Tractors
Tenure
Eligibility Criteria
Markup Rate
Equity/LKM
Repayment
Securities:
Processing Fee
including FED (Nonrefundable)
Insurance & Tracker
Cost
Down Payment
Bank's Policy
Millat Tractors / Messay Ferguson
All Models
Al Ghazi Tractors
All Models
05 Years maximum
 Minimum land ownership of 5 Acres (irrigated land)/
10 Acres (Arid land)
 Age should be between 21-65 ( Max. 65 years at
maturity)
 * Should not have write off history
Fixed Rate: 6-Months KIBOR + 7%% p.a.Rate will remain
fixed for whole tenure Land Holding (Acres)
Land Holding (Acres)
LKM
Irrigated land: 15 Acres OR
20%
Arid land: 30 Acres
Irrigated land: 10 Acres OR
25%
Arid land: 20 Acres
Irrigated land: 5 Acres OR
30%
Arid land: 10 Acres
10 installments(Biannually). 1st May & 1st November

Registration of Tractor in the name
of bank

Bank's charge on Agri land through
Zari Passbook
Rs. 5,000 per tractor. ( The bank will not charge for ECIBs,
Nadra Verisys and cost of Charge documents)
Actual (to be paid by lessee)
LKM + Processing feet insurance Premium of full tenor &
tracker charges + Registration charges (At Actual)
Home Remittances
BOP Remittance Service offers you three ways of receiving money
1.
2.
3.
1)
Account to Account Transfer
Cash Payment
BOP ASAAN Remittance Current Account
Account to Account Transfer:
Real Time credit to BOP's Account holders.
Same day credit to other bank Account holder
18
Fast, prompt and hassle free funds transfer No Limit of funds to receive in Account
Free of charge
Requirements: Complete BOP's account number/ IBAN number.
2)
Cash Payment
Receiver's account in BOP is not required
Instant cash payment of up to Rs. 500,000/- can be made to the beneficiary at any
branch Fast and hassle-free service
Requirements: Remittance Reference Number and original CNIC provided by the
receiver/ beneficiary
3)
BOP ASAAN Remittance Current Account:
Opening of a bank account to receive home remittances from our loved ones is not
easy nowadays and involves a long list of formalities. The Bank of Punjab now
introduces "BOP Asaan Remittance Current Account" to facilitate opening of bank
accounts by low risk customers to receive home remittances through proper accounts
instead of resorting to traditional cash over the counter transactions. These segments
of society may include but are not limited to skilled/unskilled work force, farmers,
less educated/uneducated people, laborers/daily wagers, women/housewives, selfemployed individuals, pensioners, young adult population etc.
Salient Features
o
o
The account will open in PKR currency as current account only.
This account shall be fed through Home Remittances from abroad
only.
o
o
o
o
o
o
o
o
o
o
Only "Individuals"can open this account in Single or Joint capacity.
There is no requirement of initial deposit and minimum balance.
No charges on opening or closing of the account.
Silver Debit Card will be issued and renewed at subsidized price of
PKR 300 per annum.
No commercial remittances shall be deposited in the account.
No local credit shall be allowed in the account.
No outward remittance will be allowed.
Maximum credit balance of upto PKR 2,000,000.
Cash withdrawal upto PKR 50,000 per day.
Fund transfer from Asaan Remittance Current Account to any other
account upto PKR 50,000 per day.
19
Organizational Structure
An organizational structure is a system that outlines how certain activities are directed in
order to achieve the goals of an organization. These activities can include rules, roles, and
responsibilities. The organizational structure also determines how information flows between
levels within the company.
REGIONAL NETWORK
NUMBER OF EMPLOYEES
Employees are the backbone of any organization, and as you might expect, studies show that
happy employees are more motivated, productive and committed. In BOP main branch,
Haveli Lakha, the total strength of the employees is more than 15.
MAIN OFFICES (without address)
BOP Main Boulevard Gulberg, Lahore.
Description of Departments
The Bank of Punjab typically has various departments to handle different aspects of banking
operations.
Here is a brief description of each department:











Financial Accounts Division
Finance Division
Remittance Department
Audit Department
Human Resource Department
Marketing Department
Asset Management Division
Consumer Banking Group
Credit Administration Department
IT Department
Foreign Trade Department Main offices
Financial Account Division:
Financial Accounts Division performs the following functions as under:
20

Preparation of Annual Financial Statements Accounting Polices for
the bank








. Preparation of Weekly Statement of Affairs for issuance in the
Government Gazette as
Provided in the State Bank of Pakistan Act, 1956.
Quarterly profit updates to the Central Board of Directors.
to provide information for right decision-making.
Monitoring of contraction and expansion of Currency operations.
Consolidation of Departmental Budgets.
Preparation of daily balance position and communication thereof to
the Federal Finance
Decision and Provincial Finance Departments.
Marketing Department:
The marketing department handles the activities regarding the promotional activities that are
held time to time and making agreements with different retailers for getting factory prices of
14 their products in order to make their products more attractive to the customers by cutting
down prices on buying from their credit cards, like special discount on purchase from credit
card.
Human Resource Department:
HR Division is responsible for attracting, selecting and recruiting the right people from the
market. BOP is proud of its highly professional, transparent and objective approach in its
recruitment and selection processes. After applying the eligibility criteria, which depends on
the Job grade, a series of selection procedures are applied before hiring employees. Normally
the candidates go through the process of test, group discussion and interview. The Interview
is conducted by a team of internal as well as external professionals of the related area.
Sophisticated recruitment and selection tools data management system; online application
and behavioral based interviewing techniques have been introduced. Human resource
department has a check on the entire system and make sure that the employees are
performing their best. Some activities performed by HR department are:






Hiring new employees.
Contract Renewals.
Performance Appraisals
Increment in salaries
Bonuses Decisions
Leaves
The Consumer Banking:
It provides financial facilities to individuals through a diverse product line. Its success
depends on the design of versatile and effective products and comprehensive communication
and marketing strategies. Agility in monitoring the portfolio and following up with its
21
customer base, which is wholly comprised of Individuals, is also an essential requirement.
This group operates in nearly all major cities of Pakistan. This group offers Products such as
home loans, personal loans, auto loans, business loans, and credit card facilities, Consumer
banking requires regular training of its workforce and the need for imparting basic product
knowledge to sales staff is highly pronounced in this group as they are in direct contact with
the customer base. This group conducts business based on structured products that fit into the
needs of its target market.
Product process manuals are developed for these products and are provided with the Credit
Policy and Procedure guidelines. Risk management for the consumer has to play a dominant
role in formulation and revision 16 of credit policies, monitoring of portfolio quality and
devising effective strategies aimed at minimizing the inherent risks.
Retail Banking Department:
This department focuses on providing banking services to individual customers, such as
personal accounts, loans, credit cards, and other retail products.
Finance Department:
The finance department of bank is responsible for managing and overseeing the financial
aspects of the bank. It plays a critical role in ensuring the bank's financial stability,
profitability, and adherence to regulatory requirements. Here are some key functions typically
performed by the finance department of BOP:


Financial Planning and Analysis: The finance department prepares
financial forecasts, budgets, and financial models to guide the bank's strategic
planning. It analyzes financial data and key performance indicators to provide insights
and recommendations for improving financial performance.
Financial Reporting: The finance department is responsible for
preparing accurate and timely financial statements, including income statements,
balance sheets, and cash flow statements.
These reports are used to provide information to stakeholders, regulators, and auditors.



Capital Management: The finance department monitors the bank's
capital position and ensures compliance with regulatory capital adequacy
requirements. It assesses the need for additional capital and manages capital-raising
activities, such as issuing debt or equity securities.
Liquidity Management: Maintaining adequate liquidity is crucial for a
bank's operations. The finance department monitors and manages the bank's liquidity
position, ensuring that it has sufficient funds to meet its obligations and regulatory
requirements.
Risk Management: The finance department works closely with the
risk management department to identify, measure, and mitigate various financial risks
faced by the bank, including credit risk, market risk, liquidity risk, and operational
risk. It implements risk management strategies and monitors risk exposure.
22
REMITTANCE DEPARTMENT:
Remittance is a key function of the bank. It is the transfer of money from one place to another
place. The need for transfer of funds is usually feel in commercial life mainly and in
everyday life commonly. By proving this service to the customers the Bank of Punjab earns a
lot of income in the form of service charges.
The Bank of Punjab deals with the following type of remittances: 1.
2.
3.
4.
Demand Draft (DD)
Mail Transfer (M1)
Telegraphic Transfer (TT)
Pay Order
Clearing Department:
All the external functions of clearing are carried by NIFT (National Institute of Facilitation
lechnology) while the internal operations are performed by clearing department. It is just like
any courier service which takes the cheques of other banks and delivers the cheques of that
branch for Clearing. It is a system by which banks exchange cheques and other negotiable
instruments drawn on each other within a specified area and thereby securing the payment for
its clients through the clearing house. A clearing house is a general organization of the banks
at a given place, its main purpose is offsetting the cross obligation of cheques. When there are
many banks in the country each will receive a number of cheques drawn on other banks,
deposited within for collection. A clearing house is an organization where these cheques are
brought and the virtual claims of each bank on the other are offset and a settlement is made
by the payment of differences. They deliver cheques that their bank may have negotiated and
receive in exchange cheques drawn on their bank negotiated by bank. The responsibility of
smooth cooperation of the clearing function lies with the State Bank of Pakistan.
Corporate Banking Department:
This department caters to the banking needs of corporate clients, including large businesses
and corporations. It handles services like corporate accounts, trade finance, project financing,
and cash management.
Treasury Department:
The treasury department manages the bank's funds, investments, and foreign exchange
operations.It deals with treasury bills, bonds, currency trading, and liquidity management.
Credit Department:
23
This department is responsible for assessing the creditworthiness of individuals and
businesses applying for loans or credit facilities. It evaluates loan applications, sets credit
limits, and manages loan portfolios.
Operations Department:
The operations department handles various operational tasks, such as account opening and
maintenance, transaction processing, clearing and settlement, and customer service.
Compliance Department:
This department ensures that the bank operates within the regulatory framework and follows
antimoney laundering (AML) and Know Your Customer (KYC) guidelines. It monitors and
reports any suspicious activities and ensures compliance with legal and regulatory
requirements.
Risk Management Department:
This department assesses and manages various risks faced by the bank, including credit risk,
market risk, operational risk, and liquidity risk. It develops risk management strategies and
monitors the bank's overall risk exposure.
IT Department:
The IT department manages the bank's technology infrastructure, including networks, servers,
databases, and software systems. It ensures the smooth functioning of online banking
services, data security, and technological innovations.
These departments work together to support the overall operations of bank, serving the needs
of individual and corporate customers while ensuring compliance with regulatory
requirements and managing risks.
Comments on Organizational Structure:
The organizational structure of BOP Sheikhupura portrays that the tasks are assigned to
different sections to let them know to whom they report to. The hierarchy of the Sheikhupura
branch reflects the organization's objectives and the strategies chosen.
The structure of BOP Haveli Lakha consists of:




Span of Administration
Unity of Command
Objective Setting
Authority & Responsibility
BOP focuses on the relationship with people because people are most valuable asset. BOP
also committed to a result-oriented culture. The goals are clear and merit is the only criterion
for reward.
24
25
Plan of Internship Program
Brief introduction of the branch:
Code:
0289
Address:
Okara
Haveli Lakha Pakpattan Road, Haveli Lakha, Tehsil Depalpur, Distt:
City/ District:
Haveli Lakha, Okara
Phone:
044-4775740 & 044-4775739
Email:
bop0289@bop.com.pk
Fax:
044-4775740
I have completed my internship in the BANK OF PUNJAB. The management team of the
BOP is very friendly and takes care of all kind of employees working in it.
Starting and Ending Date of Internship:
Starting Date
Ending Date
June 19, 2023
August 17, 2023
Office time
9:00 A.M to 5:00 P.M
Department Name and Duration
I have done my 6 weeks internship in different departments of bank under the supervision of
experienced persons of respective departments. I have learnt a lot. I learn how to deal with
the customers and different general banking operations of the bank.
26
Internship Program
Detailed description of task Assigned to Me:
First week:
In the first week of my internship in BOP Haveli Lakha branch. I was being introduced and
guided by Account Opening Officer Muhammad Tariq about how to deal with customers,
how to fill the deposit slips and cheques. Different types of the slips were given to me to fill
them.
The experience was good and I enjoyed working in this week.
The first requirement for opening an account is to fill the account opening form. First of all
the customer will state the address of branch where he is going to open his account. Then he
will state the title of account in which he will state his name. Then he will have to select that
which account he is going to open whether he is going to open.












Individual account (Salaried person account, student account, minor
account, retired person account)
Joint, sole proprietorship
Public Ltd account
Private Ltd account
Partnership
Trust account
Society/ club/ association
Government account
Then he will state his type of account which he is going to open
Saving, current
Term deposit
Foreign currency account
Then he will state the suffix that is the number of the PKR currency.
AOF includes such clauses as,
Name, father name, mother's maiden name, marital status, date of birth, Gender, NTN No that
is optional, occupation, name of employer, job title, address of employer, country of
residence, nationality, CNIC No, current residential address, permanent address, Email Id,
Fax No, Tel No,
Mobile No etc.
Specimen Signature Card:
Customer is required to fill two specimen signature cards. Each specimen signature card has
four blocks. Customer will give his signatures two times on each card
27
Enter the complete address and the nearest landmark.
Source of income:
Now the state bank of Pakistan has also added the regulation that to know about your
customer source of income and it is compulsory to the person who want to open their account
in the bank must show his source of income to the bank.
Second week:
In second week of my internship Mr.Muhammad Tariq help me to deal with customers and
open their account personally. I check all the required documents and then fill the form and
attach all the required documents with the form also verify the signatures of the customer.
Then Mr.Muhammad Tariq told me about the different stamps and their use.
Third Week:
In this week, I worked in the department where cheques books are issued and how to receive
cheque books, recovery of cheque book, charges, delivery of cheque book to customer,
recovery of cheque book to the representative and importance of Loose cheque. I also earned
about ATM Issuance and in which cases ATM can't be issued.
Issuance of cheque book
We request for the issuance of cheque book from the customer in person or through
customer's representatives. For new accounts cheque book requests are to be obtained for.
Record date on requisition slip.


Verify the customer's signature and sign as evidence on CRS.
Check and ensure that there is no restriction on account that prevents
the issuance of cheque book.
ATM Issuance

ATM cards will be issued to saving ,current and other specific
products accounts

ATM cards can also be issued to the joint account holders having
either survivor condition.

ATM cards can also be issued to the accounts held by sole Proprietors
by giving the owners name as card title.

ATM cards can only be issued to the Pak Rupee accounts.
Fourth week:
In this week, my supervisor gave detailed description of clearing department how it works.
Under the supervision of my supervisor I learned the different types of clearings which are
local clearing, same day clearing and intercity clearing. I was guided about the conditions
when to reject cheques or when to bounce a cheque which is presented to bank and why bank
28
stops payments. I learnt about the banking slips and the cheques, how to make the entry of
cheques that has to be returned without payments and what is the use of the different stamps.
Clearing:
Clearing means to clear the cheque by making and receiving payments. This is the case in
which different banks clear the cheques drawn upon each other. There are different types of
clearing as follows:
o
o
o
o
o
Outward clearing
It is basically the clearing of the cheques deposited in our customer's accounts that
customer's of other banks have given to account holders of BOP.
Inward Clearing
It refers to the clearing of all the cheques drawn upon our bank, in which customer's
make payments to the account holder's of other banks and the same procedure is
repeated as stated in the example of outward clearing.
Local Clearing
State bank has specified the region for local clearance. The area which lies under
clearing is from Bunga Hayat to Head sulemanki.
Intercity Clearing
This clearing is among the cities from Depalpur to Pakpattan is called intercity
clearing. It takes days for clearing unlike local clearing that takes one day for clearing.
Same Day Clearing
This is the clearing for the cheques of more than Rs: 5,00,000/-. In this type of
clearing the bank usually accepts the cheques for outward clearing upto 10'O clock.
The bank informs NIFT about this special type of clearing called same day clearing.
NIFT has special clearing boys for the same day clearing. These boys pass the
cheques from other banks on the same day and NIFT credits BOP on the same day.
BOP gives the credit to the account on the customer on the same day. Unlike other
types of clearings BOP charges fee Rs: 200 to 300 for the same day.
Fifth Week:
In the fifth week of my internship, I learned about how to deal with the customer and the
staff. Operational manager Mr.Waqas Sattar guided me about KYC (know your customers) of
account holders. During this week I had to recall the customers to come and verify their
account biometrically.
Sixth Week:
In the sixth week of my internship, I filled the deposit slips, filled the cheques of customers
and also checked the remittance entry manually and counted the ATM cards and cheque book
on daily basis and informed to Mr.Waqas sattar I was engaged with the staff and I was
receiving new cheque books to enter in the register, and then called the customers for
reminder.
29
REMITTANCES
Types of Customer's Cheque's:

Bearer Cheque's
Bearer cheques are the cheques that can be withdrawn by any party. The account
holder can withdraw the amount or he may refer any person for payment can be made
to the bearer of cheques. Bank requires the CNIC of bearer and bearer has to sign on
the back of cheques while presenting the cheques with his CNIC. Then cashier while
giving payment again request the bearer to sign again on the back of the cheques to
verify the signature of the bearer. This type of cheque can be presented on the counter
for payment and is called open cheque.

Order Cheque's
Order cheque is the type of open cheque that can be presented on the counter for
payment but in this type the payee is nominated or mentioned the word "OR Bearer"
is canceled to eliminate its effect.

Cross Cheque
It is the type of cheque that cannot be presented on the counter for cash payment but cheques
can be transferred the balance from the account holder to the bearer or specified person.
Person has to fill up the "Pay in slip" only. Both the bearer and order cheques can be crossed.

Types of Cross Cheques:
There are two types of cross cheques


Simple crossing
Special crossing
Simple crossing:
This is the type of crossing which is crossed on the face of the cheque and state.
It means that amount can be transferred from the account of account holder in the account.


If we cross the cheque from the front and write:
Then still it will be the category of Simple Crossing.
If we cross the cheque on the front side and write the words "& co
Then it means that Mr.A must have the company.
Special Crossing:
It is the type of crossing in which the payee is strictly restricted for payment is called Special
Crossing. This cheque is crossed on the front side ant the word "Account Payee Only" is
written Then it means that the amount can be transferred in the account of Mr. Ahmad even if
the words or bearer is not cancelled.It means that cheque can be paid to the specified person's
specified account. It can be paid to any bearer even if the word "Or Bearer" has not been
cancelled.
30
Structure of Finance Department
Finance department functions are to manage money, bookkeeping, taxes, investments, and
financial reporting for an organization. These functions can be divided into core areas like
financial administration, everyday financial services, and financial planning and analysis. The
finance department also supports the organization's mission, goals, and decisions with ethical
and practical advice and data.
Main Duties of Finance Department:
Finance department of BOP usually split into various sub-departments that perform certain
responsibilities. Some of the duties include:
Financial planning and analysis
Financial planning and analysis teams are responsible for determining annual operating and
capital budgets for bank strategies and objectives. They use data insights to make forecasts
about the bank's financial performance that allow company leaders to determine the
business's capacity for taking on new ventures and investing in new avenues. These teams
also set key performance indicators (KPIs) that make it easier to ascertain the financial health
and stability of the bank.
Some other common duties bank perform in this sub-department include financial modelling,
integrated financial planning and performance reporting. Financial planning teams allow the
company to look to the future without compromising budgets. It incorporates risk analysis to
exact a balance between generated revenues and regular costs and expenses.
31
Order-to-cash management
Order-to-cash management involves performing all duties associated with completing a
customer's order. Some tasks include receiving the pay order, sending invoices, collecting
payments and recording transactions. Order-to-cash management teams also keep up to date
on markup rates and customer credit.
Account management
Account management teams oversee accounts payable (AP) and accounts receivable (AR).
The AP department authorizes payments to outside parties for products or services. AR teams
monitor the money that comes into the bank from consumers or clients for products or
services.
This department usually sends reminders, late charges and interest charges to ensure clients
pay.
Accounting management involves tracking AP and AR using computer software to ensure
credits and debits.
Tax management
Tax departments manage bank's tax returns and compliance. They set up a favorable tax
regime for the bank to prevent it from paying more taxes than necessary. They also perform
tax calculations.
Risk management
Risk management involves monitoring operations, finances and market changes to inform
decision-making processes. Assessing risk ensures the bank develops plans in line with its
strategic goals and objectives. Where risk management teams identify problems, they look for
ways to mitigate issues and reduce potential losses.
Treasury
Treasury departments manage the bank's money to ensure it can support its day-to-day
obligations. They manage the bank's cash flow and maintain good relationships with banks to
guarantee funding and cash management. Treasury teams pinpoint the financial health and
prevent problems from occurring by applying risk management strategies.
Positions within a finance department
Some positions within a finance department and their main responsibilities include:
Chief financial officer (CFO)
CFOs are senior executives responsible for overseeing all financial actions of bank. They
provide insights and information on a financial strategy to the CEO and ensure teams
complete financial reports on time and accurately. They also take care of the bank's investor
relations, profit increase and cost reduction strategies and survey all finance divisions under
their purview.
32
Finance manager
Finance managers oversee the cash and investments of the bank and use their insight to
advise on business planning and aid decision-making. They also provide advice on bank
savings, pensions and insurance products. Finance managers set budget ranges for various
departments and monitor debt, credit and collections. Some other responsibilities include
doing business modelling and risk assessments, determining factors affecting performance
and managing accounting practices across the bank.
Financial controller
Financial controllers are responsible for overseeing daily accounting functions and preparing
financial documents, such as financial statements, payrolls and the general ledger. They
analyze cash flow using metrics such as credit card acceptance costs, cost of invoice
factoring, bad debt ratios and working capital trends. Other responsibilities include collecting
receipts and invoices, recording transactions correctly, streamlining accounting functions and
operations and developing plans for financial growth.
Account clerks
Account clerks maintain financial records and oversee the billing and accounting functions of
a bank, such as AP and AR. They also sometimes verify deposits and receipts and prepare
and maintain financial records. Some other job duties include assisting with the preparation
of annual statements, calculating and entering expenditures, reconciling bank statements with
the general ledger, completing tax returns and performing general administrative tasks, such
as photocopying and filing.
Number of Employees of Finance department in BOP
According to the website of BOP there are almost 107employees in finance department of
BOP.
And the number of employees in Haveli Lakha branch in finance department is 3.
33
Marketing Functions
Marketing function is an essential business function that helps in making the customers aware
of the products or services that are offered by a business. It is a role which helps a company
to identify and source potentially successful products for the marketplace they operate on and
then promote them by differentiating them from similar products.
BOP has lack of promotional activities due to which marketing department is very weak.But
recently print media advertising is started which will increase customer base and helps in
developing BOP's reliability and for this purpose different tools are used by bank.
Four P's:




Product
Price
Promotion
Place
PRODUCT
BOP offers various products and services to its customer. Customers can take benefits from
these products and services. This is the products strategy of BOP that they offer a large
number of products and services in less time and lower costs than competitors to fulfill the
needs of customer and to attract the customers. These products and services are always
available for customer in BOP.
Consumers Products



Saving Account
Fix Account
Current or Demand Account
Services
There are the services provided by the BOP










АТМ
Pay Order
E-Banking
Debit Card
Consumer Financing
Commission Free Remittance
Demand Drafts
Collection of Utility Bills
Locker Facility
Money transfer though Western Union
PRICING STRATEGY
BOP has used such pricing strategy which attracts the customers. There are any strategies that
promote their business. There are:
34




Earlier customers have to pay charges on every online transaction, but
now BOP doses not charge anything if the amount is PKR 25,000 or less. The charges
for online transactions of PKR 25,000 or more are PKR 166.
No charges are applied when people take money, through Xpress
money, western union.
When a person sends money through online services and if he is the
account holder of the bank and sending money into the account, no charges are
applied even if the amount is greater than 25000 rupees.
BOP Liaqat Road does not charge any amount when a person opens
new account. For opening an account, initially amount that the person deposit into the
account will remain into the account of account holder. No tax will be deducted from
this amount.
PROMOTIONAL STRATEGY
BOP also uses many promotional strategies to promote their business.






BOP banners are placed at different corners of each city on which
products and services of BOP are displayed in detail to attract the customers.
BOP deals with the customers very well and tell them about the
products and services with details. By doing this they promote their business.
BOP gives rewards to the efficient and hardworking employees.
BOP's employees attend all calls from customers and solve their
problems, hence satisfying customers and promoting the business.
BOP issues letter of thanks to all its customers and takes care of the
customers by periodically calling customers personally.
BOP provides quick services to the customers, which also attract the
customer.
PLACE
BOP does not involve middleman and sellers as it is selling its services and products through
its branches that are spread across the country.
Human Resource Management
EMPLOYEE'S RECRUITMENT AND SELECTION:
Business Development Manager
Candidates must have the ability boost up business by prompting Liability products and
building up deposit base of Bank. Eligibility: Preferably graduation from HE.O recognized
institution.
Credit Manager
35
The person should have sound knowledge of Credit Sales & Operations. Must be familiar
with banking regulations, policies and procedures. Preference will be given to candidates
Area Credit Manager
Candidate should be well versed with Credit sales & Operations prominently in Microfinance
sector. Eligibility: Commerce Graduate or MBA from H.E.0 recognized institute.
Operation Manager
This position requires ability to manage all operations at branch, needs good interpersonal &
communication skill. Must be conversant with banking regulations & ensure compliance.
Branch Manager
Candidates must have the ability to pace up Bank's business by promoting Assets & liability
products and building up deposit base. Must have good interpersonal communication skills.
TRANING AND DEVELOPMENT:
Laws and rules








All the employees are required to comply with all the laws, rules and
regulations governing BANK OF PUNJAB, including the Bank's policies, procedures
and standards, the State Bank of Pakistan and the Security and Exchange Commission
of Pakistan's regulations applicable to the Bank.
All employees must function with integrity within the scope of their
authorities and with complete honesty. follow directives given by the person(s) under
whose jurisdiction they are deputed
Core value of Integrity' must be promoted by upholding fairness,
equality and respect for all team members.
Discrimination, harassment of all types, intimidation and other
negative practices are strictly prohibited.
Harassment includes any unwanted, immoral act or attitude, including
abuse of authority, creating a hostile environment and retaliation to non compliance
with unethical demands, which is demeaning or detrimental to work performance or
the career of any employee in any capacity.
Adherence to designated time schedules is imperative. The Bank is
entitled to take disciplinary action in case of unauthorized absences.
No employee shall indulge in any political activity, including forming
or joining a political, ethnic or linguistic association; get elected to a legislative body,
in Pakistan or elsewhere, or indulge in any activity detrimental to the ideology of
Pakistan.
All full-time employees must devote their entire business day to their
work; avoid any outside activity that interferes with their judgment in the best interest
of the Bank and its clients.
36





Holds an outside directorship; carries on business activity outside;
holds majority shares/interest in a public or private business; takes direct advantage of
securities of a public listed company, or serves as a client's personal representative.
No employee shall bring political or other outside pressure/ influence to bear on the
authorities/superior officers or use the media with intent to induce them to act in a
manner inconsistent with rules in any matter relating to the Bank.
Employees are prohibited from any engagement outside the Bank
without prior approval from the Human Resource & Recruitment Department.
Employees with financial or other interest in any family business must declare in
advance by writing and seek no objection.
Employees shall not borrow from or lend personal funds or property
to any Client or Vendor who has a relationship with he Bank except on market terms
and conditions from financial institutions. Borrowing or lending in personal capacity
within the Bank is prohibited.
Employees shall be alert and vigilant with respect to frauds, thefts or
significant illegal activity committed within the office, reporting them immediately in
writing to higher authority for appropriate action to be taken. Employment or
Internship Certificates can only be issued by the Human Resource & Recruitment
Department. Receipts of funds can only be issued on prescribed forms.
Disciplinary action may be taken in case of misconduct or
unsatisfactory performance including breach of above mentioned rules; willful
insubordination; breach of confidential material; use of drugs or alcohol; falsification
of documents; violation of safety/health rules; insider trading; parallel banking;
money laundering and any act detrimental to the Bank's business.
Workplace Environment
The Bank is committed to create and maintain a working, learning and customer care
environment, which is free from violence and has zero tolerance for violence against any
employee or its property.

Employees are not allowed to play practical jokes or pranks on each
other, indulge in horseplay, or share immoral jokes with other employees or the
outside world, through Apna bank email server or computer, or cell phones.

Employees are prohibited to use, exchange, or sell intoxicants or
drugs in the work place or come to work under their influence.

Employees are required to maintain proper dress code, appear well
groomed and presentable at all the time. Livery staff should be in their proper
uniform. High standards of behavior and tidy work areas are to be maintained at all
times.
Responsibilities towards employees

Employees must raise concerns and suspicions, in confidence, about
any actual or potential illegal activity or misconduct according to the process in
Whistle Blowing Policy and the Anti Harassment Policy. Failure to do so will result
in employee being deemed a party to the irregularity.
37

Guidance must be sought from relevant department in case any
employee receives any demand or request for information from outside party
including law enforcement agencies.

Every employee must protect the Bank's assets, physical and
intellectual, and adhere to its Email and Internet Usage Policy and Acceptable Use
Policy.

Employees must maintain all records accurately and are prohibited
from making any false or misleading entries, forging or tampering with signatures to
compromise integrity of Bank's record.

Employees are required to identify all conflicts of interest and declare
them immediately, including all matters expected to interfere with their duty to the
Bank or ability to make unbiased and objective recommendations.
Performance Management:

All employees shall regard as strictly confidential any information
concerning the business of the Bank which is not intended to be made public unless
required to do so under the law, consulting the Human Resource & Recruitment
Department in case of ambiguity about a required disclosure. Confidential
information must only be shared with employees on a need to know basis consistent
with their job assignments as set out in Information Security and Governance Policies.

All customers' related information should be kept secret, used for
intended purpose only and any further use should be allowed only after prior consent
of the concerned customer.

Employees should protect the privacy and confidentiality of personnel
records, not sharing them inside or outside the Bank except after approval by Human
Resource & Recruitment Department.

Employees should not use Bank's facilities to access, download or
distribute personal or social information, including any material that may pose
reputational risk to the Bank.
Secrecy of passwords must be maintained to prevent unauthorized access
Compensation Management
Different kinds of compensation tools use such as:




Increments
Employee health plan
Employee leave
Bonuses
38
Financial Analysis
Ratio Analysis
Liquidity Ratio
“Liquidity ratio measure the ability of the unit to meet its short term obligations.”
Name of Ratios
Result for 2022
Result for 2021
Current Ratio
0.8282
0.8379
Absolute current ratio
0.9561
0.9542
A- CURRENT RATIO
Current ratio is also known as working capital ratio. It is unfavorable for BOP because there
are not sufficient assets available to meet the current liabilities according to the rule thumb
for current ratio i.e. 2:1. It shows the poor management of utilization of resources.
B- ABSOLUTE LIQUID RATIO
Absolute liquid ratio relates to the cash, bank, and, marketable securities available to meet the
current liabilities. This ratio is also unfavorable for BOP. As it says, that minimum 50% of
these current assets should be there to meet the short term liabilities. Absolute liquid ratio
lays down very strict and exacting standard of liquidity therefore; acceptable norm of this
ratio is 50%.
Profitability Ratio
Name of Ratios
Result for 2022
Result for 2021
Return on Equity
0.1753
0.2427
Return on Asset
0.0081
0.0109
Return on operating Fixed
Asset
0.1512
0.1424
39
"It shows the overall effectiveness of management to utilize its resources to generate
profit."
RETURN ON EQUITY
Return on equity for BOP is unfavorable because of loss in previous year. Moreover, equity
of BOP is increasing in current year. This is the reason of its decrease.
RETURN ON ASSET
Return on asset has decreased for BOP which is unfavorable. With the increase in assets of
the bank, the relevant profit should also be increased but it did not so. Instead of profit there
was loss and that is the reason for decrease in return on asset.
RETURN ON OPERATING FIXED ASSET
Return on operating fixed assets has also been decreased because there is loss in year 2011.
On the other hand, there should be relevant increase in profit with the increase in operating
fixed asset. Only increase in asset is not enough. It shows the poor management of utilization
of resources to generate profit.
Debt ratio
Debt ratio tells about the assets invested by the outsiders. So, decrease in this ratio is
favorable which shows the amount contributed by the outsiders is being decreased, which is a
positive trend as it decreases the institute's degree of indebtedness.
Equity ratio
Equity ratio for BOP is increasing. This is favorable for shareholders as equity increases,
their share of profit and dividend also increases. This ratio provides a cushion against using
debt and leverage.
Debt to equity
Debt to equity ratio is being decreased which shows the positive trend for BOP. As increase
in debt is less than the increase in equity. The higher ratio gives satisfaction to shareholder
but reduce the satisfaction of investors.
Fixed asset ratio
40
This ratio established the relationship between the long term funds and fixed assets. Its shows
the negative trend because the net fixed asset are not enough available to meet long term
obligations.
INTERPRETATION (VERTICAL ANALYSIS)
Investments & Advances remained major components of Asset Mix of the Bank. The Bank
opted o channelize incremental funds in Risk Free Investments and grow Advances Book in a
very careful manner. Accordingly, the mix of Advances reduced to 36% in 2020 as against
46% in year 2015, while the mix of Investments improved to 52% as against 37% in year
2015.
Owing to Branch Expansion and products diversification, the Bank was able to post a steady
growth in Deposits with a CAGR of 17%. Borrowings were the second largest component of
Liabilities which stood at 14% as against 12% in 2015.
Markup Income has shown a steady growth with main contribution from income on
Advances and Investments. The contribution of markup income constitutes 87% of the total
revenue for year 2020. Markup Expense has also increased due to growth in Deposit base and
change in minimum rate of profit on PLS Deposits. Concentration of Non-Markup Income
for year 2020 remained at 13% mainly on account of realization of capital gains. The
concentration of Non-Markup Expense remained at 18% for the year 2020 & 2019. The rise
in Non-Markup Expenses is in line with Branch Expansion, investment in new technologies
and inflationary parameters.
INTERPRETATION (HORIZONTAL ANALYSIS)
Bank's Asset Base has registered consistent growth during 2015-2020 and it crossed Rs. 1.0
Trillion mark in 2020. During year 2020, Total Assets registered the highest growth of 26%
while CAGR for 2015-20 remained at 18%.
Deposits also grew at a steady rate with a CAGR of 17%. Highest growth of 23% was
registered in year 2017 while YOY growth for year 2020 remained at 21%. During the period
2015-2020,
230 Branches were opened by the Bank.
41
Owing to consistent growth in profitability, the Equity registered a steady growth. The YOY
growth for year 2020 remained at 12%.
On profitability side, Markup Income of the Bank registered a CAGR of 22% during 20152020.
The main components were Markup earned on Advances & Investments. In line with Bank's
strategy to grow Advances portfolio cautiously and divert incremental funds towards
investment in risk free Government Securities, the major contribution came from Markup
Income on Investments.
Markup Expense also registered a CAGR of 25% due to above stated growth in Deposits. It
also includes impact of change in Minimum Profit Rates on PLS Deposits in line with change
in SBP Policy Rate. The Cost of Deposits was effectively managed by the Bank through
focus on low-cost CASA Deposits.
Non-Markup Income registered as CAGR of 11% during 2015-2020. The main contribution
was made by Capital Gains realized on Securities during different years. The Fee Based
Income also registered as steady growth.
Operating Expenses registered a CAGR of 18%. The rise is mainly on account of
personnel/property expenses in line with expansion in Branch network (230 Branches added),
inflation and investment in new technologies.
Provision Charge posted a CAGR of 13% with highest level of Rs. 14.7 Billion during year
2017 loretire LOCs issued by GOPb. The Charge of Rs. 6.9 Billion for year 2020 includes
General Provision of Rs. 3.3 Billion and Specific Provision of Rs. 1.7 on subjective basis.
SWOT Analysis
SWOT analysis a short form for strengths, weakness, opportunities, and threats.
It is an analysis of internal strengths and weakness of an organization as well as external
opportunities and threats. SWOT analysis affects the organizational performance. The overall
evaluation of a company strengths, weakness, opportunities and threats is called SWOT
analysis.
An organization's mission is accomplished by best strategies in SWOT analysis by:



Taking advantage of organizations opportunities and strengths.
Reducing effect of threats.
By avoiding the weaknesses.
Organizations missions are used as a context and SWOT analysis is one of the most
important steps in formulating strategy; managers avoid weaknesses and assess internal
strengths.
Strengths
42











BOP bank officers are considered as the most able professionals in the
banking world. In my observation BOP officers interact with the customers as they
are their personal friends and used to solve their problems as their own.
The customer's perception for BOP is very high due to compassionate
and personalized services of the officers. Customers feel secure while dealing with
BOP and they also have trust.
The branches of BOP are opened in commercial areas in order to save
customers from facing problems to reach the bank.
The security system is very good in BOP.
Employees are given with good facilities.
Internal computer system in BOP is very reliable and easy to use.
Every information is computerized.
There is properly maintained data.
BOP is 51% owned by Punjab government. BOP has an asset base of
Rs. 165 billion and total deposits of Rs. 138 billion.
The management prepares a financial statement which shows the state
of affairs, cash flows, the result of operations of state of affairs, & equity changes.
BOP follows the timelines specified by SBP for implementation of
recommendations of Basel-Il committee for risk management and management.
BOP is adopting measures to monitor and minimize risks that are
related to banking industry.
Weaknesses:











There is lack of proper internal control in BOP which is pointed by
the auditor in his review.
BOP has number of products and services more than commercial
banks but any advertisement on electronic media is not given.
During my internship, I observed that employees have a lot of burden
of work. The work should be distributed equally between the employees on the basis
of their capabilities and their post
Selection of employees should be biased.
There is a lot of concern of SBP on the bank's control that is the
weakness of BOP.
Due to more influence of the government there is negative behavior of
the staff with the
customer.
Staff is not too much motivated due to no proper rewards or less
remuneration.
There is no time management principle for customer care.
There is lack of proper internal control.
BOP has negative profitability every year as its director and presidents
played trick with the bank by involving themselves in a fraud of billion of rupees.
Opportunities:
43





There can be a great increase in deposits of BOP by commencement
of new schemes.
There should be emphasis on e-banking.
BOP should adopt the diversification, innovation and mission driven
approach which are keys to success.
A number of financial schemes like special deposit accounts that have
unique features are introduced by BOP. In past few years, deposits of BOP have been
increased by 40%.
Information technology is the future of this dynamic world. So BOP
should emphasize on it. Like other foreign banks, bank can design universal account
to enhance online facilities.
BOP is satisfying customer needs. A number of products are introduced by BOP especially in
retail banking and customers are becoming more loyal to the bank. And due to optimum
prices and brand products, customers feel secure and convenient.
Threats:



Credit crisis have an adverse affect on BOP.
BOP is facing a strong competition by other banks as business is
growing at very high speed.
Customers are lacking trust in BOP due to which deposit growth.
CONCLUSION
BOP is contributing more in the industrial progress and capital formation in the whole
country.
As shown in financial analysis, it is revealed from the data that bank is sharing major banking
business of the country which is concerned with bank's financial performance.
In addition, the schemes and policies are of great importance for the bank which helps in
trading & non trading growth.
Trade is facilitated by BOP both inside and outside of the country. BOP is constantly
showing incredible growth in all areas of the country and is remain on the front position of
modern financial institutions. However its growth of profit is reduced due to stress on
consolidation and controlled providing of loans. BOP has uniform policies and going on
efficiently. The employees are awarded with compensation and other possible facilities for
their hard work and best efficiency. In all activities, BOP adopts merit policy. Administration
planned to avoid all issues, drawbacks and problems by comparing it with other banks. BOP
has proper and progressive
management policies.
44
The devoted, motivated & passionate employees will soon bring the time when the bank will
touch the peak of success, progress & development.
45
RECOMMENDATIONS
Following are the recommendations that may be prove successful to the bank by studying the
organization and during internship.

















The main intention should be consciousness in the general public and
should launch a well planned advertising campaign to capture a considerable share in
the banking sector of the country.
The bank should have physical facilities like furniture, parking
facilities for their clients as these facilities play an important role in enhancing image
of the bank.
BOP can attract intelligent and capable persons and professionals by
making the salaries and pays of officers compatible to other private banks.
Expenses should be minimized by BOP.
Hardworking employees who give extra-ordinary performance in their
work should be given special awards.
BOP should do innovations and launch new products by keeping in
mind that what people want to have and what the banks are providing actually.
There should be more concentration on advances rather than on
investments.
Such services and products should be launched by BOP in which there
is no need for the customers to come to the bank like telephone banking.
Those banks are successful only which provides standard, accurate
and fastest services for the product and loan delivery to the customers. So BOP should
use latest and advance technology like fax and computerization.
Authority should be given to management.
MIS of BOP should be improved for delivery of information at time
through a network by connecting branches & regional offices to the head office.
Loans should be given on merit and management of BOP should
avoid all political pressures.
At the time of staffing and selection of employees, BOP should prefer
the candidates with professional qualifications like C.A, MBA, and ACMA.
While recruiting employees, interviews should be taken to check
personality, communication skills, and how much he is social.
TH bank should make all possible efforts to save the bank from
interruption of provincial government.
In order to convey the messages of employees to the authority, there
should be union of employees.
BOP should provide facilities to the research scholars and make a
policy to provide accommodation to them who want to study the banking issues.
46
REFRENCES
Websites:



www.google.com.pk
www.answer.com
www.bop.com.pk
Books consulted:



Principle of managerial finance
Financial management by Gitman
Brochures and pamphlets provided by bank
Annual Reports 2020-23





www.scribd.com
www.pba.com.pk
www.brecorder.com.pk Economic review of Pakistan'
http://en.wikipedia.org/wiki/Bank_of punjab
www.bop.com/prducts/48
47
ANNEXES
48
49
50
51