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A FARMER FRIENDLY BANK
www.ppcbl.com.pk
Internship Report On The Punjab Provincial Co-operative Bank
Ltd
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Introduction!
 Student Name
 Muhammad Zubair Anjum
 Student ID
 BC080201453
 Degree Program
 BS-Business Administration
 Area of Specialization
 Finance
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Contents!
Intro of the Organization
1
Org Hierarchy Chart
2
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Training Program
3
Ratio Analysis
4
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Conclusion
5
6
Recommendation
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Organization Introduction!
Creation of Bank
 PPCBL created through cooperative societies act 1924
 Funding to central cooperative banks & societies
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 Setup was created at Tehsil & District Level
Major Objectives
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 To promote cooperation through cooperative societies
 To reduce poverty by providing less markup loans
 To increase production of agriculture sector
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Organization Introduction!
Products
 Bank provides two types of loaning products
 Crop loans to cooperative societies
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 Loans like goat sheep finance to individual farmers
 Medium term tractor finance & livestock projects finance
Services
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 Remittance
 Crop insurance, Pension scheme
 Utility bills collection & lockers facilities
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Organization Introduction!
Branch Network
 Extensive network of 159 branches
 Eight zonal offices throughout Punjab
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 Head office bank square Share-Qaid-E-Azam Lahore
Business Volume
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 Approximately 14.35 billion rupees in total assets
 Approximately 4.65 billion rupees liabilities
 Shareholders equity is 6 Billion
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Detailed Business Volume
Description of Accounts
In 2009
Rs.(Mil )
In 2010
Rs.(Mil)
In 2011
Rs.(Mil)
Profit Before tax
(979.071)
(174.826)
508.403
(979.071)
87.361
8177.689
13711.922
(179.626)
2304.214
7385.647
15245.873
479.773
6089.755
6020.045
14359.198
Profit After Tax / Net Inc
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Equity balance total
Advance and Net
Total Assets
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Deposits & Other A/C
Investments
Total Current Liabilities
1837.175 3820.343
451.012
799.673
10016.170 9355.390
2443.098
1503.620
4655.248
Earning Per Share
(225.80)
110.53
(41.41)
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Organization Competitors
Farmer Banking Competitors
 Zarrai Taraqiati Bank Ltd
 Khushali Bank Ltd
General Banking Competitors
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 MCB Bank Limited
 Habib Bank Limited
 SILKBANK Limited
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 United Bank Limited
 Allied Bank Limited
 Askari Commercial Bank Limited
 Habib Metropolitan Bank Limited
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Organizational Hierarchy Chart
Boar of Directors
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Board Sub
Committee of Audit
Secretary
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President / CEO
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Organizational Hierarchy Chart
President
/
CEO
C.F.O
Head
C.R.M.D
&
CAD
Head
Operation
I.T
Head
SAM &
Legal
Head
H.R
Head
Internal
Cont &
Compliance
Deputy
Head
Reconciliation
Deputy
Head
Credit Risk
Deputy
Head
Operations
Deputy
Head
SAM
Deputy
Head
Admin & Estt
Deputy
Head
Internal
Control
Deputy
Head
Accounts
Deputy
Head
C.A.D
Deputy
Head
I.T
Deputy
Head
Legal
Deputy
Head
Staff
Benefit & Tax
Deputy
Head
Compliance
Deputy
Head
Training
Compliance
Officers
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Business
Developm
ent
Deputy Head
Retail /
Corporate
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Deputy
Head
Treasury
Deputy Head
Engineering
&
Properties
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Organizational Hierarchy Chart
Zonal / Divisional
Head
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Deputy Zonal Head
(Operation & H.R)
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Officer(s)
Deputy Zonal Head
Credit & Recovery
Deputy Zonal Head
Statistics &
Consolidation
Computer
Computer
Officer(s)
Officer(s)
Operator
Operator
Computer
Operator
Branch Manager
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Organizational Hierarchy Chart
Branch Manager
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Compliance
Officer
Officer Branch
Operation
Agri Credit &
Recovery Officer(s)
Officer(s)
Supporting Staff
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Cashier
Messenger
/ Guards
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Training Program
Account Opening Department Tasks
 Filling account opening form
 Opening accounts & issuing checque books
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 Preparation of vouchers
Bill Collection Department Tasks
 Receiving utility bills
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 Making entries in scroll book
 Calculation gross amount and commission
 Printable scroll for balancing & record keeping
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Training Program
I. T Department Tasks
 Preparation of weekly / monthly affairs
 eCIB verification & societies loan statements
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 Printing editing and sharing online documents
Agri-Credit & Recovery Department Tasks
 Filling loan set
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 Calculation of average sale value
 Markup calculation of borrowers
 Reminder phone calls to borrowers for installments
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Financial Statements
Statements are available at!
http://www.ppcbl.com.pk
http://www.ppcbl.com.pk/financial
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Ratio Analysis
Ratio
Analysis
The Punjab Provincial Co-operative Bank Ltd
Formula: Net profit / (loss) After Tax / Net sale *100
Year 2009
Year 2010
Year 2011
Net
(979071) /1193637 (179626)/1553750 479773/1647318
Profit
=
=
=
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Margin
-82.02 %
-11.56 %
29.12%
50
0
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-50
-100
Net Profit
Margin
2009
2010
2011
-82.02
-11.56
29.12
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Ratio Analysis
Ratio
The Punjab Provincial Co-operative Bank Ltd
Analysis Formula:MarkupEarn–MarkupExpense/MarkupEarn
Year 2009
Year 2010
Year 2011
Gross 1193637 / 1570956 1553750 /965655 1647318/386027
=
=
=
yourSpread
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Ratio
-31.61 %
37.85 %
76.56%
100.00%
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50.00%
0.00%
-50.00%
Gross Spread
Ratio
2009
2010
2011
-31.16%
37.85%
76.56%
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Ratio Analysis
Ratio
Analysis
The Punjab Provincial Co-operative Bank Ltd
Formula: Non Interest Income/Total Income
Year 2009
Year 2010
Year 2011
Non
77394 / 1271031
interest to
=
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total
6.08%
income
76830 /1630580 73906 / 1721224
=
=
4.71%
4.29%
10.00%
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5.00%
0.00%
Non Interest
Income to Total
Income ratio
2009
2010
2011
6.08%
4.71%
4.29%
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Ratio Analysis
Ratio
Analysis
The Punjab Provincial Co-operative Bank Ltd
Formula: Interest Earned / Interest Expense
Year 2009
Year 2010
Year 2011
Spread 1193637 / 1570956 1553750 / 965655 1647318 /386027
Ratio
=
=
=
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0.75 times
1.60 times
4.26 times
5
4
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3
2
1
0
Spread Ratio
2009
2010
2011
0.75
1.6
4.26
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Ratio Analysis
Ratio
Analysis
The Punjab Provincial Co-operative Bank Ltd
Formula: (Net profit after tax/total assets) * 100
Year 2009
Return (979071)/13711922
on Asset
*100
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Ratio
= -7.1%
Year 2010
(179626)
/15245873*100
= -1.17%
Year 2011
479773 /
14359198*100
= 3.34%
5.00%
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0.00%
-5.00%
-10.00%
Return on Asset
2009
2010
2011
-7.10%
-1.17%
3.34%
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Ratio Analysis
Ratio
Analysis
The Punjab Provincial Co-operative Bank Ltd
Formula: Net Income/Sales x Sales/Total Assets x100
Year 2009
Year 2010
Year 2011
DuPont (979071)/1193637 (179626)/1553750 479773/1647318
Return
=
=
=
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on Asset
-7.14
-1.17
3.34
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4
2
0
-2
-4
-6
-8
Dupont Return on Asset
2009
2010
2011
-7.14
-1.17
3.34
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Ratio Analysis
Ratio
The Punjab Provincial Co-operative Bank Ltd
Analysis Formula: Net profit or loss after tax/total Equity x 100
Year 2009
Return (979071)/87361
on
=
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Equity
-1120.70
Year 2010
(179626)/2304214
=
-7.79
Year 2011
479773/6089755
=
7.87
500
0
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-500
-1000
-1500
Return on Equity
2009
2010
2011
-1120.7
-7.79
7.87
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Ratio Analysis
Ratio
Analysis
Debt
Ratio
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The Punjab Provincial Co-operative Bank Ltd
Formula: (Total Debt / Total Assets)*100
Year 2009
10016170/
13711922
= 0.73%
Year 2010
9355390/
15245873
= 0.61%
Year 2011
4655248/
14359198
= 0.32%
0.80%
0.60%
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0.40%
0.20%
0.00%
Debt Ratio
2009
2010
2011
0.73%
0.61%
0.32%
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Ratio Analysis
Ratio
Analysis
The Punjab Provincial Co-operative Bank Ltd
Formula: Total Liabilities / Shareholders Equity
Year 2009
Debt to 10016170 / 87361
=
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Ratio
114.65 %
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Year 2010
Year 2011
9355390/2304214 4655248/6089755
=
=
4.06%
0.76%
200.00%
180.00%
160.00%
140.00%
120.00%
100.00%
80.00%
60.00%
40.00%
20.00%
0.00%
Debt / Equity Ratio
2009
2010
2011
114.65%
4.06%
0.76%
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Ratio Analysis
Ratio
Analysis
The Punjab Provincial Co-operative Bank Ltd
Formula: EBIT / Total Interest
Year 2009
Times 591885/1570956
Interest
=
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Earned
0.37 times
Year 2010
790829/965655
=
0.81 times
Year 2011
894430/386027
=
2.31 times
3
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2
1
0
Time Interest Earned
Ratio
2009
2010
2011
0.37
0.81
2.31
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Ratio Analysis
Ratio
Analysis
The Punjab Provincial Co-operative Bank Ltd
Formula: Total Advances/ Total Deposits
Year 2009
Year 2010
Year 2011
Advances 8177689/1837175 7385647/3820343
Deposit
=
=
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site
Ratio
4.45
1.93
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6020045/
2443098 =
2.46
10
8
6
4
2
0
Advances / Deposit
Ratio
4.45
1.93
2.46
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Ratio Analysis
Ratio
Analysis
Operating
cash
flow
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family
site
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The Punjab Provincial Co-operative Bank Ltd
Formula:Net cash of Operating activities/CurrentLiabilities
Year 2009
(321956)/
10016170
= -0.0321
0
-0.1
-0.2
-0.3
-0.4
-0.5
-0.6
Operating Cash Flow Ratio
Year 2010
(2135260)/
9355390
= -0.2282
Year 2011
(2529962)/
4655248
= -0.5434
2009
2010
2010
-0.0321
-0.2282
-0.5434
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Ratio Analysis
Ratio
Analysis
The Punjab Provincial Co-operative Bank Ltd
Formula: Net income/ Outstanding No. of Shares
Year 2009
Earning (979071000)
Per
/4335068
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Share = -225.8
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200
100
0
-100
-200
-300
Earning Per Share
Year 2010
(179626000)/
4337440
=-41.41
Year 2011
479773000/
4340625
=110.53
2009
2010
2011
-225.8
-41.41
110.53
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Ratio Analysis
Dividend Per Share: Due the losses in previous
some years bank could not paid any dividends to
its shareholders.
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Price Earning Ratio: data are not available due to
unlisted organization.
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Conclusion!
 Increase markup revenue and reduce expenses
 Increase its non interest income
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 Inefficient utilization of assets in previous years
 Improve return on equity
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 Improve its debt/equity ratio
 PPCBL Improve its liquidity
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Recommendations!
 Reduce expenses to better profit margin
 Increase its non interest income from commissions etc
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 Efficiently utilize assets to increase return on assets
 Improve ROE so that investors should invest more.
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 For equity investors PPCBL improve its debt/equity ratio
 PPCBL Improve its liquidity by increasing OCF ratio.
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Thank You!
www.ppcbl.com.pk
CELL: +92-333-6204958
FAX: +00-0-0000-0000
E-mail:bc080201453@vu.edu.pk
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