Internship Report
On
The Bank of Khyber Munda Branch, Lower Dir
By
Mohammad Rehan Khan
Supervisor Name
Mr. Adnan Sheikh
Internship Report submitted to the Institute of Management Sciences, Peshawar,
In partial fulfillment of the requirements for the Degree of
BS-Accounting and Finance
INSTITUTE OF MANAGEMENT SCIENCES, PESHAWAR
Session: 2019-23
Internship certificate
i
Certificate of Approval
I certify that I have read the Internship Report on “The Bank of Khyber Munda Branch,
Lower Dir” by, and my opinion this work meets the criteria for approving an internship
report submitted in partial fulfillment of the requirements for the BS Accounting and
Finance at the Institute of Management Sciences, Peshawar.
Supervisor Name: Mr. Adnan Sheik
Designation: Faculty member
Signature: _______________
Coordinator Research & Development Department
Name: Dr. Saleem Gul
Signature: _______________
ii
Letter of Undertaking
To whom it may concern
I, Muhammad Rehan, am writing this letter to provide you with an undertaking regarding
the submission of my internship report for the internship program I completed at Khyber
bank Munda branch. I hereby confirm that I understand and accept the following terms
and conditions regarding the submission of my internship report:
●
I acknowledge that the internship report is a mandatory requirement for the
completion of my internship program at Khyber bank.
●
I understand that the internship report should be a comprehensive document that
reflects my learning, experiences, and observations during my internship period.
●
I commit to completing my internship report within the specified time frame, 3
months.
●
I will ensure that the internship report is an original piece of work, representing
my own thoughts, ideas, and analysis, unless otherwise specified by IMSciences.
●
I will follow the prescribed format and guidelines provided by IMSciences for the
internship report. This includes the structure, length, referencing style, and any other
specific requirements mentioned.
●
I understand that any delay in the submission of my internship report may
adversely affect my evaluation and overall assessment for the internship program.
●
I acknowledge that IMSciences reserves the right to use the internship report for
internal purposes, including but not limited to research, development, or training
activities.
●
I agree to provide IMSciences with an electronic copy and/or a printed copy of my
internship report, as per their preference.
●
I acknowledge that the evaluation of my internship report will be based on the
quality of content, clarity of expression, coherence of ideas, and adherence to the given
guidelines.
●
I understand that any form of plagiarism, including the use of others' work without
proper attribution or citation, is strictly prohibited and may result in disciplinary actions.
iii
By signing this undertaking, I affirm that I have read, understood, and agree to comply with
the terms and conditions stated above. I assure you that I will exert my best efforts to
complete and submit a comprehensive and insightful internship report.
Thank you for providing me with the opportunity to undergo an internship at Khyber bank.
I am grateful for the knowledge and experiences gained during my time with the
organization, and I am eager to contribute to its success in the future.
Please find my signature below as an affirmation of my commitment to the above
undertaking.
Yours sincerely,
Muhammad Rehan
BS A&F (2019-23) Group-B
___________________________
iv
Declaration
I, Mohammad Rehan Khan, hereby declare that the research thesis submitted to R&DD by
me is my own original work. I am aware of the fact that in case my work is found to be
plagiarized or not genuine, R&DD has the full authority to cancel my internship report and
I am liable to penal action.
Signature……………
Date: July, 2023
v
Executive Summary
Bank of Khyber maintains its position as Pakistan's premier financial institution by constantly
lifting the bar for excellence. The Bank of Khyber is a provincial government bank with 191
branches throughout Pakistan that is owned by the Government of Khyber Pakhtunkhwa. It
has its main office in Peshawar, Pakistan.
Banks' primary functions are to take deposits and lend money on interest. The have vast range
of financial product and services i.e. Deposit accounts (checking accounts, savings accounts,
certificates of deposit, and money market accounts); Loans, such as mortgage loans, auto
loans, and household loans; The provision of credit cards; Check-cashing services; financial
planning services; Insurance; Business financing. Banks profit by collecting money from
individuals at a lesser rate of interest and It is lent to investors at a higher interest rate. The
difference between these two rates of interest is the bank's profit.
It concentrates on promoting the financial growth of Pakistan through aggressive and
balanced lending policies, technology-driven products and services, as well as an extensive
network of local, international, and representative branches.
Report contain banking activities performed during internship such as account opining and
bookkeeping.
This report's objective is to evaluate The Bank of Khyber Munda branch's performancerelated operations, as well as BOK's overall performance, financial position, and
organizational structure. The head office manages his main accounting activity, while the
branch operating manager oversees the financial and accounting activity at the operational
level. Following the chairman is the CEO, five senior executive vice presidents, and nonclerical employees.
Academic solid theoretical foundation in subjects such as finance, economics, accounting,
and business administration. The understanding necessary to comprehend the fundamental
concepts and principles of the financial industry.
The report concludes with a SWOT analysis and recommendations that highlight the most
significant strengths, weaknesses, opportunities, and threats of the organization. Which
includes trust and reputation, product variety, cyber security risk, intense competition, and
economic volatility. In addition, recommendations are provided to address gaps and
enhance the performance of the organization.
vi
A comprehensive conclusion is drawn at the end, on the basis of analysis and
recommendations, a remedy to surmount weaknesses and improve performance is
proposed.
vii
Acknowledgement
I would like to express my sincere gratitude to all individuals who have contributed to the
successful completion of my internship and the preparation of this final report. I am
immensely grateful to Mr. Adnan Sheikh for their guidance, support, and valuable
insights throughout my internship journey.
I would also like to extend my appreciation to the entire staff at The Bank of Khyber
Munda Branch, Lower Dir for their cooperation and assistance during my internship
period. Furthermore, I would like to thank my university, professors, and fellow
colleagues for their continuous encouragement and support. Finally, I am thankful to my
family and friends for their unwavering support and encouragement throughout this
internship experience.
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Table of Contents
Internship certificate ........................................................................................ i
Certificate of Approval ....................................................................................ii
Letter of Undertaking .................................................................................... iii
Declaration........................................................................................................ v
Executive Summary ........................................................................................ vi
Acknowledgement ........................................................................................ viii
Chapter 1 Introduction to organization ........................................................ 1
1.1 Hierarchy and Organization flow chart ............................................... 2
1.2 Organizational Structure of Bank of Khyber ...................................... 3
1.2.1 The Board of Directors (BOD) ........................................................... 3
1.3 Head Office ............................................................................................. 3
1.4 Departments. ........................................................................................... 4
1.5 Purpose of Study .................................................................................... 6
Sources of Data Compilation for the Internship Report .......................... 7
Field of Banking in Pakistan ....................................................................... 8
1.5.1 Financial products of BOK ................................................................ 9
Chapter - 2
internship activities ....................................... 12
Introduction to the Branch ........................................................................ 12
2.1 Activity performed during internship ................................................ 12
2.1.1
Account-opening ............................................................................ 12
2.1.1.1 Raast Current Account .............................................................. 12
2.1.1.2 Raast Saving Account ................................................................. 13
2.1.5 Cash Department............................................................................... 13
2.1.6 Credit approval ................................................................................. 14
2.1.7 Branch bookkeeping ......................................................................... 14
2.1.8 Khyber bank as a KPK government institution ............................. 14
2.1.9 Branch administrative expense ........................................................ 15
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2.1.10 Internal Audit .................................................................................. 15
Chapter 3
S.W.O.T Analysis report .......................................................... 17
3.1 S.W.O. T Analysis of the Bank of Khyber ......................................... 17
3.1.1 Strengths ............................................................................................ 17
3.1.2 Weakness ............................................................................................ 18
3.1.3 Opportunities ..................................................................................... 18
3.1.4 Threats................................................................................................ 19
3.2 Administrative Review ......................................................................... 19
Political Analysis ........................................................................................ 21
3.3 Recommendations ................................................................................ 21
Chapter 4
Role of IMsciences in this internship report ......................... 24
4.1 Theoretical Understanding .................................................................. 24
4.2 Contextual Knowledge ......................................................................... 24
Chapter 5 An Assessment of the Internship in Khyber Bank .................. 26
Chapter 6 Conclusion .................................................................................... 28
Reasons ........................................................................................................ 28
Remedies ..................................................................................................... 28
Reference List ................................................................................................. 29
x
Chapter 1
Introduction to organization
With 216 branches around Pakistan, The Bank of Khyber is a provincial government bank
operated by the Government of Khyber Pakhtunkhwa. It is headquartered in Peshawar.
Act No. XIV, approved by the “Provincial Legislative Assembly of the Khyber
Pakhtunkhwa Province of Pakistan”, established it as a state-owned regional bank in
1991. In September 1994, it was given the designation of scheduled bank. The Bank of
Khyber is in a special position among Pakistan's other banks, stands apart, and has the
honor of being counted among the nation's only five government banks. It provides
traditional banking, Islamic banking, and loans for microfinance.
Since 1991, the Bank of Khyber has operated as a scheduled national bank under the
supervision of the State Bank of Pakistan (SBP). Compliance with requirements and strict
regulatory restrictions indirectly impact profitability bank's profitability in 1991, but the
bank's profits increased to $1 million due to business growth.
The Bank of Khyber bank branches are located strategic business location, which is
centralized by head office. Khyber bank expend its business network through passage of
time according to business requirement
Mission Statement
The Bank of Khyber has a mission as an organization. As stated in the mission statement,
the mission is as follows:
“To increase shareholders' value and provide excellent service and innovative products
to customers through effective corporate governance, friendly work environment, and
contributing towards an equitable socioeconomic growth.”
1
1.1 Hierarchy and Organization flow chart
Organization
Board of directors
Managing directors
Long term projects
resident directors
audit
Managing committee
Personnel and
establishment
Banking operation
division
Investment
department
Branch operations
department
Information
department
Account and treasure
department
Risk management
division
International banking
department
Human resource
department
Credit department
Public relation
department
Marketing department
Assets management
department
2
1.2 Organizational Structure of Bank of Khyber
One of the contemporary businesses is the Bank of Khyber, which is run by knowledgeable
employees. Since it is a centralized organization, power is distributed evenly throughout.
This chapter contains all of the information that is currently known on the structure and
management of the organization.
1.2.1 The Board of Directors (BOD)
The Board of Directors (BOD) has been given broad supervision and management of the
bank's affairs and business in accordance with the Bok Act. The five-member board
includes four members chosen by the KPK government.
Management
Mr. Ali Gulfaraz brings with him an extensive professional experience of 25 years in global
corporate and investment banking. He started working for Bank of America in Pakistan
before relocating to London. Mr. Ali Gulfaraz joined Mizuho Corporate Bank in London
after leaving Bank of America, where he worked his way up to the position of Managing
Director-Head of Corporate & Investment Banking for the UK, Ireland, and Nordic nations.
He stayed connected to the Fauji Foundation as a Member, Board of Directors, until joining
the Bank of Khyber.
Staff Members
Over 500 permanent officers serve in the bank's several departments at present. Doctorates,
postgraduates, and graduates from both international and domestic institutions are
represented. The Bank does not employ a traditional Clerical or Non-Clerical Cadre. The
bank sends them to advanced courses and seminars hosted by the institute of Banker in
Pakistan and other professional institutions, in addition to providing them with on-the-job
training.
1.3 Head Office
Bank of Khyber has a central office. It resides within a cantt. This facility contains stateof-the-art scientific equipment. It includes internet-related software. It contains all the
relevant details.
The headquarters has the following two divisions:
The finance division Administrative division
3
These are further classified for administrative convenience. There are also two additional
distinct departments.
Long term endeavors Audit Department Long-term projects manage investment proposals
for large industrial projects, whilst audit is responsible for internal control:
Department in Head Office
Branch operations for microbusiness and rural development are divided.
Investing in Personnel and Administration
Treasury Accounting and Financial Accounting
1.4 Departments.
Branch Operation
The branch operations department exercises direct control over branch operations. It
manages all of these issues that are directly associated with the operation of branches,
such as legal and administrative matters.
Micro-Business and Rural Development
The establishment of this department was intended to meet the financial requirements of
KPK's minor enterprises. This department also provides financing for rural and women's
development.
Investment
This department is comparatively new to the organization. The objective is to identify
investment opportunities and develop investment programmers. This division also
forecasts the risk associated with this opportunity and provides expert knowledge.
Personnel and Establishment Division
Personnel and Establishment Humans are the organization's backbone. Its success is
largely dependent on its personnel. The personnel department handles all employeerelated issues, including recruitment, promotion, ACR preparation, punishment, and
incentive programmers.
Account and Treasury
This department accountable for book keeping and cash management.
4
Each branch office report to head office
Account Department
Account department is responsible for repairing quarterly income statement, cash flow
statement and Balance statement.
Compatible and Treasury
This department maintains all account-related documentation. As its name suggests, this
department is responsible for managing the bank of Khyber's currency account. This
division is further divided into two divisions.
Account department
The accounting department is responsible for restoring the quarterly income statement,
cash flow statement, and balance sheet.
Treasury Department
The Treasury Department is accountable for administering funds and preventing their
misuse.
5
Supervising and Recovery
In the strictest sense, this division is the legal arm of the Bank of Khyber. This
department negotiates any outstanding debts, and if its efforts are unsuccessful, it initiates
legal action. This department offers complete support to branches pursuing genuine debt
recovery through legal means. They track down debtors and their assets and serve
summonses.
This department is primarily concerned with long-term endeavors. This responsibility is
to identify those long-term projects that will considerably contribute to the development
and progress of KPK and Pakistan.
There's no modern organization can be "visionary" without an IT department. This part of
the organization is responsible for computerizing the numerous Bank of Khyber branches.
This division has developed internet software for networks for the headquarters.
Foreign Exchange
This division takes charge for MCA maintenance, transacting in foreign currency
telegraph draughts, and client import/export facilities.
Public Relation
This department suggests ways to strengthen public relations, attract consumers, and
encourage people to invest in the bank.
Credit Division
The credit division is for approving sizable loans. This department manages creditor
requests and proposals. This department is responsible for managing the bank's financing
operations. It provides clients with account terms and conditions. This department is
responsible for accepting or rejecting a proposal.
1.5 Purpose of Study
The goal of this report is to understand how theoretical information is applied practically
in an organization. To address the issues that were discovered during the internship, a
study of the Khyber Bank was conducted. According to the analysis and conclusions, the
management is given some advice for how to enhance its operations. In addition, the
6
internship report is a significant and required component for the Bachelor in Accounting
and finance.
An internship at The Bank of Khyber Munda Branch was completed. The Munda branch
of the Bank of Khyber in KPK, with its accounts, cash, clearing, credit, and remittance
departments, is the major subject of this study's financial research.
Below is a breakdown of the main and secondary resources used to compile the internship
report's data.
7
Sources of Data Compilation for the Internship Report
A majority of the information comes from meetings, discussions with managers and
employee, manager briefings and discussions, and my own observations made throughout
my internship.
Assistant Information
Brochures, manuals, annual reports, publications by and about Bank of Khyber's policies
and procedures, journals, and content from the Bank of Khyber's website were mined for
secondary data.
Field of Banking in Pakistan
The following elements make up Pakistan's money market structure:
Savings Banks, Cooperative Credit Banks, Commercial Banks, Exchange Banks,
Cooperative Credit Institutions, and Specialized Credit Institutions
KPK's Banking Industry
The banking industry consists of 31 institutions, 22 of which are privately held, 5 are
government-owned, and 4 are based in other countries.
In all, there are branches of foreign scheduled banks in the province. KPK banks have
always been able to attract a significant amount of national deposits. There is now a
greater demand for financial services as a result of the owner's growing percentage of
investment outside the jurisdiction. Additionally, a sizable KPK expat population,
particularly in the middle east, is providing prospects for the province's banks.
The Primary Goals of the Bank.
The Bank of Khyber (BoK) was founded in response to the business community's need
for a financial institution with its primary headquarters located within the Province.
The provision of local businessmen with access to senior management of the
The aim is to optimize the utilization of funds raised within the province of Khyber
Pakhtunkhwa for the purpose of promoting economic development. This involves
mobilizing both private savings and public funds and redirecting them towards productive
channels, with the goal of ensuring their availability for this purpose. The objective is to
encourage the implementation of industrial agricultural practices and robust economic
processes by involving both private and public sectors in the province. The aim is to
provide aid to less developed regions and generate job prospects, particularly in rural
8
areas of the province. Additionally, the objective is to offer guidance and support to KPK
residents residing abroad to efficiently and lucratively invest their foreign earnings in the
province and other regions of Pakistan.
9
1.5.1 Financial products of BOK
Most of the financial products offered by the BoK's Islamic branch are compliant with
Islamic law, or "sharia."
Saving Account
The BoK savings deposit account allow multiple withdrawals up to the credit balance,
while account holder earn interest.
Term Deposit Account
The BoK Term Deposit Account provides the double advantage of attractive yields and
high liquidity. Profit may be taken monthly, quarterly, semiannually, annually, or at
maturity. Profit is recorded daily on a Balance Basis There is no consequence for
imprudent encasing. owner, in the event of an early encasement the precious tender rate
will be applied.
10
Call Deposit Receipts (CDR)
This is a confirmation by the bank, per the depositor's instructions, that the amount of the
SDT is held by the bank and will be paid whenever requested by the CDR beneficiary.
ATM Service
BoK has determined that the electronic infrastructure of m net switch is required for ATM
service in order to keep up with technological advances. This will benefit consumers by
granting them access to their funds through the country's existing ATM network. In
March 2014, the BoK Munda branch installed an ATM to better serve their customers.
National id cards The MTCN (money transfer control number
11
Chapter - 2
internship activities
Introduction to the Branch
The BOK Munda branch ranks as one of the most significant branches with the 0169
branch code. It performs all of the responsibilities of a commercial bank, including
deposits, advances, remittances, etc., because it is one of the commercial locations (the
principal center of Dir lower). The Munda BOK branch is renowned for being the
busiest location in the vicinity. The branch's location is optimal. The new branch office
is sufficiently spacious to accommodate both employees and customers. The bank's
personnel are highly committed to customer service.1. Accounts Section 2. Cash
Section 3. Clearing Section 4. Remittances Section
2.1 Activity performed during internship
Tasks performed during internship are:
2.1.1
Account-opening
Banks have stringent regulations that cause them to avoid the majority of consumers
who meet minimum requirements.
Basic Requirements for Account Opening are CNIC finger print
Accounts opening department is one of the departments that come under the
retail/general banking facilities provided by Bank of Khyber. Due to security issue
customer information insert in T24 software which verify his identity and give detail
whether person involved in illegal activities or not. Some of the major deposit
Accounts opened by Bank of Khyber are as follows:
2.1.1.1 Raast Current Account
On a “Qard” basis, deposits to current accounts are received. Current Account funds are
not used for any interest-bearing banking transactions. The capability to establish an
account is available at all Islamic Banking Branches management did proper advertisement
Supervisor's name: MR. Farman Job title: branch service officer
12
2.1.1.2 Raast Saving Account
Deposits in BOK Islamic Banking's Raast Savings Account are accepted on a “musharaka”
basis (Profit & Loss), which is strictly in accordance with the norms of Islamic Shariah.
The deposits that are received in the Raast Saving Account are then invested in Islamic
assets such as “Murabaha”, “Ijarah”, Diminishing “Musharaka” or Islamic “Sukuks”, etc.,
all of which meet the requirements set out by the Shariah Board.
2.1.3 Remittances Section
Remittances of funds, referred to as money transfer services, are one of the duties
conducted by institutions around the globe. Transferring funds by means of banking
channels saves time, is less expensive, and eliminates the hazards associated with
physically transferring money.
Types of Remittances
Remittances can broadly be classified as outward and inward remittances.
Outward remittances and inward remittances are two main categories of remittances.
Outward Transfer
While a bank or branch instructs another financial institution or branch to make a
remittance or payment, this is referred to as an outward remittance.
Inward Remittance
When a bank or branch processes a payment or disbursement on behalf of another bank
or branch, it is managing an inward remittance.
Modes of Money Transfer
Different modes and means of remittance are discussed below. BOK transfers funds
through the following methods:
Demand draft (DD)
Telegraphic transfer (TT)
Mail transfer (MT Order to pay (P/O Mr. Farman is the name of the supervisor. Position
Title: branch service officer
2.1.4 Cash Department
The significance of the currency department derives from the fact that it is a major point
for communication between the bank and its most significant customers. This division
represents the bank to the public and conveys the institution's commitment to professional
13
in both its processes and practices, as well as its dedication to providing courteous and
helpful customer service. This division is in charge of payments and receipts. Effective
control of cash is needed for payments to be made, receivables to be collected, and liquidity
to be maintained.
currency Collection and payment by cash are the sole activities of the currency department.
Supervisor’s name: MR. Farman
Job title: Cashier
2.1.5 Credit approval
during the credit approval process, BoK follow flow chart which provide by head office
which over sight by internal control management, basically it contains a guide line to
evaluate several factors to determine whether to approve or deny the credit application.
These factors include Credit history, Income and employment, Debt-to-income ratio, Credit
score, Purpose of credit.
2.1.6 Branch bookkeeping
Bank of Khyber use automated accounting processes which help streamline financial
tasks, reduce errors, and improve overall efficiency. BoK use T24 software which process
financial transection to generate financial statements, on basis of this statement head office
make decision.
2.1.7 Khyber bank as a KPK government institution
The majority of provincial financial banking activities and procedures are carried out by
Khyber bank.
Government tenders
The financial documentation for KPK construction and other project bids is processed by
the Khyber bank.
The compensation and pensions of government employees
The majority of government salaries and pensions are paid by the Khyber bank.
14
Government agency account
Government accounts have a distinct procedure for opining, in contrast to other accounts.
The account is opened in the name of the institute's point of contact.
2.1.8 Branch administrative expense
Branch operational manager accountable for managing utility expenditures such as rent,
electric bills, generator gas costs, and stationary.
Any variance between budgeted and actual costs must be reported to the head office.
Name of the manager: Mr.yasir
2.1.9 Internal Audit
Before an internal audit, the regional manager visits each branch and verifies that all
banking activities comply with state bank regulations.
The head office forms auditing teams for each region. Following are the procedures taken
during an audit:
I.
Step 1
Planning: The planning phase initiates the auditing procedure. Auditors determine the
audit's scope and objectives, identify the essential areas to be examined, and develop an
audit plan.
II.
Step 2
Auditors collect pertinent information regarding the bank's operations, financial statements,
internal controls, and other pertinent documents. This may require an examination of
financial records, policies, and procedures, interviews with bank personnel, and analytical
procedures.
III.
Step 3
Risk Assessment: The auditors evaluate the financial, operational, and compliance risks
associated with the bank's operations. They assess the efficacy of the bank's internal
controls and identify potential risk or vulnerability areas.
15
IV.
Step 4
The auditors conduct exhaustive testing procedures to evaluate the accuracy and
dependability of the financial records and internal controls of the bank. This may involve
testing samples of transactions, confirming the existence of assets and liabilities, and
evaluating compliance with applicable laws and regulations.
V.
Step 6
Findings and Recommendations: Based on the results of their testing, the auditors
document any discrepancies or anomalies they have discovered. In addition, they may make
suggestions for enhancing the bank's internal controls, risk management processes, and
compliance procedures.
VI.
Step 7
Auditors compile a final audit report that summarizes their findings, conclusions, and
recommendations. Typically, this report is shared with the bank's management, board of
directors, and regulatory bodies.
16
Chapter 3 S.W.O.T Analysis report
The acronym SWOT stands for Strength, Weakness, Opportunities, and Threats.
SWOT analysis is a thorough evaluation of a company's internal strengths and
vulnerabilities, as well as its external opportunities and threats.
Strategies for SWOT Analysis, capitalizing on opportunities and strengths, Mitigating
its weaknesses and threats
SWOT Analysis is predicated on the notion that cautious administration ensures the
success of an organization. An essential technique for assessing the whole situation is
the SWOT analysis. regardless of the manner in which an organization conducts its
commercial activities, each problem is still pertinent and helpful in the development of
corporate strategy.
3.1 S.W.O. T Analysis of the Bank of Khyber
3.1.1 Strengths
Following are the strengths of organization
1. the first bank in Pakistan to provide services in accordance with Islamic law.
2. The people have faith in and support for the provincial administration (KPK govt),
which is made possible by the existence of the government bank.
3. It has access to modern technology and a wealth of resources.
4. The crew is comprised of a variety of young and experienced professionals that have
a wide range of competence.
5. Officer may periodically provide customers with higher discounts and intriguing
promotional opportunities.
6. The capacity of the Bank of Khyber to provide customers with products and services
throughout the whole year has earned it the respect of the market.
7. The Bank of Khyber is able to deal with the stress brought on by the presence of
other financial institutions.
17
8. The Bank has a positive reputation among the general public, which serves as an
advantage for the institution.
9. The leadership of the bank is driven by a desire to make it the premier financial
institution in the nation.
3.1.2 Weakness
1 Motivated employee are scarce. Bank has no restrictions, which lowers efficiency.
2. A communication gap exists between management levels.
3. The lower level management lacks managerial depth and clear direction.
4. A lack of seasoned commercial bankers in positions of power
5. The absence of contemporary financial techniques including online banking and
ATMs.
6. The bank has strong marketing capabilities, yet they are underrepresented in various
media.
7. Pay structure that is below that of rivals.
8. Unable to compete against other banks.
9. A lack of resource employees with advanced training. Bad lending trends are on the
rise.
3.1.3 Opportunities
1. Opportunity to establish branches in northern regions due to the more than 80
percent current deposit.
2 Since every branch is computerized, there is no issue. When considering online
banking.
3. The bank should show interest in emerging market sectors including the software
and IT industries.
4. The addition of a new product line. specifically, Islamic financial products which
have great market demand in northern areas.
5. Extending loan opportunities to lower-income groups, which lowers the risk of loss
and enhances the bank's reputation.
6. To establish an office in Afghanistan to help traders and businessmen.
18
3.1.4 Threats
1.The nation's political and economic position. a decline in commercial activity in the
nation.
2. A decline in public confidence in investor uncertainty related to banks.
3. Other commercial banks utilize contemporary technologies.
4. Establishing Islamic banking poses risks to BoK because a failure would result in a
significant loss for the company. Now every bank has their own Islamic finance
products
5. The number of private and international banks in the nation is rising.
6. Decreasing savings rates across various demographic groups.
7. Development of technology worldwide.
8. Commercial banks and Bank Alfalfa pose the greatest danger to Bok.
9. Professionals employed by other banks
According to the results of the "SWOT analysis, bank management should plane for
will growth and for this the should speak with all bank management levels, identify
new client categories, and provide consumers with incentives.
Similar to this, Bank of Khyber must concentrate on potential clients and pay close
attention to each client's needs before it can rank among the most prominent and
comprehensive banks. Emphasis should be placed on existing clients by providing
them with personalized services and focusing on new private clients rather than
government deposits with high interest rates. non-performing loan trend is becoming
worse
19
3.2 Administrative Review
Space Shortage
It has been discovered that branches lack adequate capacity. The seating layout is
inadequate relative to the number of employees and clients.
Centralization
The organization known as Bok is very centralized. There is no delegation of power to
the employees or management that is subordinate. In order to increase the productivity
of the workforce and raise their confidence, some of the managerial responsibilities
need to be assigned to those in lower positions.
Deficiency in Specialized Training
Bok education is not based on specialization but on generalization. Once someone has
completed their training, they are "inducted" into that profession. He or she has
difficulty finishing the assignment because of a lack of information.
Ignorance of The Rules and Regulations
Due to poor communication, Bank officials often break rules. They must communicate
promptly and inform staff of negligent fines.
Poor Job Rotation
Officers rotation is not up to the mark; it is observed that an experienced financier from
the Deposit section is unaware of the operations of the Remittance department. In order
for them to have a comprehensive understanding of the entire system, they must be
rotated through each department. Improper Distribution of Duties
In Bok, duties and responsibilities are improperly distributed. Observations indicate
that an officer of the same grade may occasionally have less or more responsibility
than another officer of the same grade.
working setup
Observations indicate that there are deficiencies in the branch's layout, which generates
additional disruption and excessive movement, which in turn affects employee
productivity and, by extension, that of the entire organization.
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Political Analysis
Internal Political Environment
There are no systematic rewards in personnel and administration, resulting in decreased
employee motivation. Due to this, experienced project officers frequently depart the
personnel and organization. This results in an ongoing project officer scarcity.
There is a lack of coordination between personnel and establishment employees. It
functions as a factor towards its effectiveness.
There doesn't exist political pressure for robust coordination between various
institutions to reduce employee costs.
There is a great deal of political influence in the bank's recruitment system, which leads
to inefficient management and, in the long run, a poor portfolio.
Having a 51% stake in Bank of Khyber, the provincial government constantly
interferes with the bank's regular operations, which has a significant impact on the
bank's efficacy.
3.3 Recommendations
The following conclusions and recommendations have been derived from independent
research and analysis. The advice provided will aid in resolving the bank's problems
and enhance the efficiency and performance of Khyber Bank.
Space Shortage
During the course of my training at the Munda Branch, I discovered that the branch
has a capacity problem. There is no suitable and appropriate seating arrangement for
customers. To resolve this issue, the bank may either rent the adjacent building or
relocate to a different location.
Better Training Programs
Insufficient BoK training programmer. Motivating consumers requires marketing
training for staff. The bank's training plan should use technology to enhance employee
decision-making, interpersonal skills, and individual requirements.
Decentralization
Some powers and duties should also be delegated to lower-level employees, so that
they perceive themselves as essential and accountable. This will also serve as a
motivator for them, resulting in increased productivity
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Correct Checking
The bank's gateway lacks a reliable means of inspection. For safety purposes,
additional security measures should be implemented in addition to the surveillance
apparatus at the primary entrance.
Better Communication
To have a stronger feedback system engagement in the bank operation, BoK
management should focus on enhancing upward communication.
Merit Basis Recruitment
No candidates should get any additional perks, and banking posts should only be
appointed on the basis of merit.
The Bok connection is significantly impacted by recruiting decisions. Particularly for
jobs in business administration, finance, computerization, and marketing, hiring should
be based on relevant education and experience. In the end, this will help the bank hire
more skilled personnel.
Marketing Visits
Personal market visits are a highly effective strategy. Such visits should be routinely
scheduled with adequate planning.
Training Academy
The Bok has no training academy of their own. Newly hired employees receive training
at the training academies of other institutions. The same holds true for current
employees. To fulfill the educational needs of both new and current staff members so
that they receive training on the peculiar and specific working procedures of the BOK.
Availability of Employees in Market
A shortage of staff members increases the burden of existing employees, thereby
decreasing their output and motivation. To solve this issue, job descriptions should be
updated and merged together to generate new positions.
It is necessary to conduct recruitment in order to cover these new vacancies. Thus, the
burden of employees will be minimized operations will be streamlined, and employees
will feel more at ease carrying out their responsibilities.
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Friendlier Environment
It is necessary to establish a friendlier environment since this will help to increase
employee engagement. Office noise should be reduced because it negatively affects
the working environment. Each distinct duty should have its own location or section,
and more space should be provided. It would also be of greater assistance in
establishing a welcoming environment.
Enhanced Customer Services
In today's competitive environment, constant development in customer service is
required. To attract more consumers, personalized banking must be implemented. All
consumers should be treated with equal courtesy.
International Banking
Bok should expand its branch network not only within Pakistan, but also
internationally.
Latest Computer Equipment’s
In order to improve the computer's data processing performance, the bank should
implement the most recent software.
Customer Service Counter
Customer satisfaction is essential to achieving success. They require appropriate care.
The head office lacks sufficient staff and its employees are overworked, which makes
it more difficult for customers to disturb and interrupt them while they are working.
For the benefit of customers and the efficient operation of the bank, there must be a
customer service counter to advise and assist customers.
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Chapter 4
Role of IMsciences in this internship report
Academic studies are essential to an internship because they provide a firm foundation of
knowledge and skills that can be applied to actual work experiences. Here are a few ways
that academic studies can contribute to a productive internship:
4.1 Theoretical Understanding
Academic studies provide a theoretical comprehension of the apprenticeship field's
pertinent concepts, principles, and frameworks. This theoretical knowledge is the
foundation for understanding the industry, its practices, and the internship's specific
responsibilities.
4.2 Contextual Knowledge
Academic studies provide a more comprehensive understanding of the industry's
historical, economic, and social contexts. This contextual understanding enables interns to
comprehend the big picture and make meaningful connections between theoretical
concepts and practical applications.
4.3 Analytical and Critical Thinking
Academic studies develop analytical and critical thinking skills, which are necessary for
identifying problems, analyzing data, and proposing solutions during an internship. These
abilities enable trainees to approach duties and initiatives with a strategic and reflective
mindset.
4.4 Communication and Presentation Skills
Academic studies frequently include assignments, presentations, and group projects that
improve communication and presentation abilities. Interns must convey ideas, collaborate
with colleagues, and interact with clients or customers in a professional manner; therefore,
effective communication is essential.
4.5 Research skills
Academic studies cultivate research skills, such as information collection, data analysis,
and literature review. These skills are useful for undertaking research or analysis for
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internship projects, comprehending market trends, and keeping abreast of industry
advancements.
4.6 Integrity, and professionalism
ethical behavior is emphasized in academic studies. These values are transferable to an
internship environment, where interns are expected to uphold ethical standards, maintain
confidentiality, and exhibit professionalism in their interactions with colleagues,
customers, and stakeholders.
4.7 Problem-Solving Skills
Interns acquire problem-solving skills through academic studies by completing
assignments, case studies, and research projects. During their internship, this problemsolving mindset empowers interns with the ability to identify obstacles, evaluate
alternatives, and develop creative solutions.
4.8 Adaptability and Continuous Learning
Academic studies cultivate adaptability and a mindset of lifelong learning. Interns who
have developed these characteristics are more likely to accept new responsibilities, learn
from feedback, and adapt to altering circumstances in their internship environment.
Internships provide practical experiences and opportunities for hands-on learning, while
academic studies provide a foundation. The combination of academic knowledge and
internship experience produces a well-rounded skill set that can be beneficial for future
career endeavors in the selected field.
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Chapter 5 An Assessment of the Internship in Khyber Bank
The purpose of this evaluation is to assess the impact of the Khyber Bank internship on the
intern's personal and professional development. The evaluation will analyze the internship's
strengths, limitations, opportunities, and challenges, highlighting the lessons learned and
improvement areas.
Objectives and Expectations:
This section reviews the objectives and expectations established at the outset of the
apprenticeship at Khyber Bank. It investigates the extent to which these objectives were
met and their congruence with the internship's purpose and the intern's personal and
professional objectives.
Exposure to Banking Operations:
The intern's exposure to numerous banking operations at Khyber Bank is evaluated. It
evaluates the intern's participation in retail banking, corporate banking, customer service,
and other relevant duties, projects, and procedures. The evaluation evaluates the intern's
level of practical experience and comprehension of the bank's operations.
Knowledge Acquisition
This section evaluates the knowledge gained at Khyber Bank during the apprenticeship. It
evaluates the extent to which the intern's academic studies complemented the internship
experience, allowing the intern to comprehend the theoretical foundations and apply them
to real-world financial scenarios. The intern's understanding of banking concepts,
regulations, and industry trends is evaluated.
Skill Development
This section evaluates the development of skills throughout the apprenticeship at Khyber
Bank. It assesses the intern's proficiency in financial analysis, risk assessment, customer
relationship management, communication, and other fundamental banking skills. The
intern's proficiency in using banking software, conducting transactions, and responding to
consumer inquiries is evaluated.
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Professional Growth
This section evaluates the intern's professional development during his or her
apprenticeship at Khyber Bank. It evaluates the intern's adaptability to a professional work
environment, collaboration with colleagues, professionalism in client interactions, and
adherence to ethical standards. The evaluation also considers opportunities for networking,
mentoring, and exposure to the organizational culture of Khyber Bank.
Challenges and Lessons Learned
This section examines the difficulties encountered during the internship at Khyber Bank
and the lessons learned as a result. It evaluates the intern's ability to overcome obstacles,
effectively manage time, and develop resilience in the face of adversity. The evaluation
emphasizes the most important lessons learned and how they contributed to the intern's
personal and professional development.
feedback and evaluation
This section contains feedback and evaluation from Khyber Bank's supervisors, mentors,
and colleagues. It evaluates the intern's contribution to the bank's operations as well as his
or her performance, strengths, and areas for improvement. The evaluation integrates
internship-related feedback and considers its impact on personal and professional
development.
Conclusion
The conclusion summarizes the main findings of the evaluation, emphasizing the positive
aspects of the Khyber Bank internship experience as well as areas for improvement. It
highlights the value obtained from the apprenticeship, such as knowledge acquisition, talent
development, professional development, and lessons learned. The evaluation concludes
with reflections on the internship's contribution to future career aspirations and suggestions
for improving Khyber Bank's internship program.
Overall, this evaluation provides a thorough analysis of the Khyber Bank apprenticeship
experience, highlighting its influence on personal and professional development within the
financial industry. It is a valuable instrument for self-reflection, learning, and development,
informing future career decisions and facilitating continuous improvement at Khyber bank
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Chapter 6 Conclusion
Based on the suggestions made in the prior section of the report, the following is the action
plan for scholarship schemes to improve the education and skills of employees.
Reasons
The majority of The Bok's roughly 400 employees are basic graduates.
Individuals with degrees from foreign institutions are not eager to join the BoK.
They are constantly attempting to join multinational corporations and foreign institutions.
Remedies
The following solutions are proposed to address the situation:
i.
The Bok needs to emphasize education and experience.
ii.
The Bok should consistently provide incentives and opportunities for its personnel
to improve their educational profile. BoK's best option for accomplishing this
objective is to establish a scholarship program for its employees to obtain degrees
in MBA or BBA in finance or banking, Ph.D., etc. from the country's top
universities or abroad.
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Reference List
The Bank of Khyber, personal and Administration Department Manual, 2000.
• The Bank of Khyber, Recruitment policy 2000.
• The Bank of Khyber, Information Memorandum 1998
• NWFP Act No. XIV. (1991)
• Personal working during internship period.
http://www.bok.com.pk/
http://www.wikipedia.com/
• Consulate General of Switzerland, (2011), Pakistan Banking sector, Karachi
• Bank of Khyber information memorandum. (2009). Information Memorandum
Peshawar
Bank of Khyber (2022). Annual Report. Peshawar
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