INTERNSHIP REPORT ON BANK OF PUNJAB

Internship Report submitted to the Faculty of Master of Business Administration in Partial Fulfillment of the Requirements for the Degree of Master of business Administration.Program & Session MBA (Finance)

UNIVERSITY OF GUJRATDate of Submission

Name of Program Coordinator ___________________Signature of Program ___________________

ACKNOWLEDGementAll praises to Allah, the most merciful, kind and beneficent, and the source of all knowledge, wisdom within and beyond my comprehension. He is the only God, who can help us in every field of life. All respect and possible tributes goes to my Holy Prophet (SAW), who is forever guidance and knowledge for all human beings on earth.I am proud to say that I am very grateful to my family whose kind prayers and cooperation helped me at every step of my work. Special thanks go to my parents for the cooperation for the sake of my knowledge,I am greatly indebted to my learned teachers, who have great influence on me during my formative years. This report reflects the knowledge which I have gain from my teachers. I acknowledge with great attitude the invaluable help extended to me by Mr. Touqir Ahmad one of the officer of the Bank of Punjab.I am really very thankful to Mr. operational manager and all the bank staff for their cooperative attitude during my internship.In the end thanks are due to one of my friend for his cooperative attitude during the completion of report.

EXECUTIVE SUMMARY

To interpret my skills and educational knowledge of Finance I done my internship in Bank of Punjab Circular Road Branch and to know how I will work in financial institutions and among various types of people have different attitude. The objective of this Internship was to explore the issues relating to Finance and to find out problems regarding the theoretical concepts with practical experience working in an organization during the internship and study the system of Bank of Punjab. There are many possible improvements, which we can make positive changes in the system.The report is based on my Six weeks internship program in Bank of Punjab. The methodology reported for collection of data is primary as well as secondary data. The biggest source of information is my personal observation while working with staff and having discussion with them. The report summarizes the Bank of Punjab with its working divided into three parts first part deals with the description of the BOP the second part covers the theory and practices adopted by BOP and third part discuss the financial position of BOP, its analysis and at the end concluding remarks and suggestions are given for improvements. It was too much difficult for me to describe the functioning of such a vast organization within the limits. In spite of this I tried my best to describe.Finally, for any all errors and omissions in the writing of the report only I am responsible for which I hope that all concerning regards of this report will forgive me.

BRIEF CONTENTSIntroduction and Bank of Punjab 6-9 Banks Profile Introduction Overview of OrganizationHistorical Background 10 BackgroundOrganizational Structure 11-17Organizational Network 18-20 Registered and Head office Share Registration Office Branch network Present Status of BankManagement of BOP 21-24 Management System Management Structure Corporate informationDepartments 25-43 Departmentalization in BOP General Banking Department Deposit section Account Opening section Locker Service Section Cash Dealing Department Cleaning Section Remittance Section Advances Department Accounts Department Billing and Government Receipt/Payment DepartmentCommercial and Retail Banking 44-48 Commercial Banking Retail Banking Product LineSWOT Analysis 49-51 SWOT AnalysisWork Performed 52-63 Learning and Personal Experience Branch Profile Branch Hierarchy Departments of Training Issues Faced By BranchFindings and Conclusions 64-71 Dilemmas Faced By Organization Recommendation Conclusion Bibliography

INTRODUCTION & BANK OF PUNJAB

In this section three topics are discussed Banks Profile BOP Introduction Overview of Organization Vision Mission Core Values Goals

Banks ProfileType Public

Established1989

Headquarter Lahore, Pakistan

Key people Naeemuddin Khan, PresidentKhalid Timizey, Deputy CEO

Industry Banking, Capital Market

Products Financial Services

RevenuePKR 19,700 Million

Net IncomePKR 7000 Million

Employees6900

Home Pagewww.bop.com.pk

INTRODUCTIONThe Bank of Punjab is working as a scheduled commercial bank with its network of 284 branches at all major business centers in the country. The Bank provides all types of bankingservices suchas Deposit inLocal Currency, Client Deposit inForeign Currency, Remittances, and Advances to Business, Trade, Industry and Agriculture. The Bank of Punjab has indeed entered a new era of science to the nation underexperience and professional hands of its management. The Bank of Punjab plays a vital role in the national economy through mobilization of hither to untapped local resources, promoting savings and providing funds for investments. Attractive rates of profit on all types of deposits, opening of Foreign Currency Accounts and handling of Foreign Exchange business such as Imports, Exports and Remittances, Financing, Trade and Industryforworkingcapitalrequirementsandmoneymarketoperationsaresome facilities being provided by the Bank. The lending policy of Bank is not only cautious and constructive but also based on principles of prudent lending with maximum emphasis on security. Asagriculture is considered asbackbone ofour economy theBank of Punjab has introduced "Kissan Dost Agriculture Finance Scheme" to small farmers.

OVERVIEW OF THE ORGANIZATION

VISION To be customer focused bank with service excellence.

MISSION To exceed the expectation of our stakeholders by leveraging our relationship with the Government of Punjab and delivering a complete range of professional solutions with a focus on program driven products and services in the agriculture and middle tier markets through a motivated team.

OUR CORE VALUES

These are the values we celebrate; Our Customers:As our first priority Profitability:For the prosperity of our stakeholders that allows us to constantly invest, improve and succeed Corporate Social Responsibility:To enrich the Lives of community where we operate Recognition And Reward:For the talented and high performing employees Excellence:In everything we do Integrity:In all our dealings Respect:For our customers and each other

Historical Background

The Bank of Punjab started functioning with the inauguration of its first branch of 7-Egerton Road,Lahore on November 15, 1989. The architect of the bank Mr. Nawaz Sharif then, the Chief Minister of Punjab, performed the inauguration.

In Pakistan, over long period of time the gap in saving and investment and balance of trade benefit has posed serious threat to target level of growth. Interestingly even such adverse circumstances growth of real sector during the preceding year registered a favorable change which speaks of hidden potential and strength of economy.

The new bank on the national scene in 1990s has done two services to the nation.

1. The saving base of the economy has effectively enlarged and hence the investment opportunities have increased.2. The services of the banks in the fact of severe competition have improved so now consumer are left with extensive choice to do or undo their business relations with these banks keeping in view quality of their services.

ORGANIZATIONAL STRUCTURE

In this section topic is:

Overall organizational structure of BOP and its hierarchical view. Comment on Organizational Structure.

Division of Labor Span of Control Communication

ORGANIZATIONAL STRUCTURE

In BANK OF PUNJAB , the head is called Chairman or President of the Bank. And after President there is Five Broad of Directors. BANK OF PUNJAB has eleven Groups which control the working of the Divisions, Wing, Department, Section and Regional of the national bank of Pakistan. In BOP Department is called Wings.

Chairman & President

Board of Directors

Presidents Secretariat

Secretary Board of Directors

Compliance GroupCorporate & Investment Banking Group

Audit & Inspection GroupCredit Management Group

HRM & Administration Group

Operation GroupCommercial & Retail Banking GroupTreasury Management Group

I.T. GroupSpecial Assets Management GroupOverseas Management Group

Bank of Punjab divided their task in to separate jobs. Basically BOP having different groups, and each group perform different task specialization in their department. Bank of Punjab categories their departments through their work specialization. And NBP hire their employees also through work specialization. The following Chart shows the Work Specialization in the bank. HRM & Administration, Operation, Commercial & Retail Banking, and I.T Group are performing different working in the Organization.

Commercial & Retail Banking GroupHRM & Administration GroupI.T. GroupOperation Group

Bank of Punjab is structurally divided into Groups and groups are also subdivided into Departments, Wings, and Divisions. Bank of Punjab has different Department in the Group and each department performing work, as their task assign. Department also subdivided into working bases.

Credit Management Group(Functional Deptt)

Credit Policy & SME WingIndustrial Research WingCredit Monitoring WingAdministration Wing

GEOGRAPHIC DEPARTMENT

Special Assets Management Group(Geographic Dept)

SAMG Head OfficeSAMG South(Karachi)SAMG - North (Lahore)

PROCESS DEPARTMENT

Compliance Group(Process Dept)

Administration WingSBP InspectionMarket & Liquidity RiskCredit Risk

CUSTOMER DEPARTMENT

Operation Group(Customer Dept)

Financial Institutional & Cash Management.Customer Facilitation & Admn.Customer Services & Govt. Business

Bank of Punjab provides Services through more than 284 branches in Pakistan. All Branches of National Bank of Pakistan report to five Head of RMT Members. And these five members reported to regional Offices. Regional Offices report to the Group Chief of the Groups. All the process is working very quickly and it not consume more time. And the Group Chief of each Group Report to the President of the BOP. All the data were proceed to the President of the bank.

Chairman & President

Operation Group ChiefCompliance GroupChiefAudit & Inspection Group ChiefHRM Group Chief

North RegionSouth RegionOverseas RegEast RegionWest Region

Head 5Head 4Head 3Head 2Head 1

Branch 3Branch 4Branch 5Branch 2Branch 1

Bank of Punjab is relatively Wide span of control and Flat Structure. Bank of Punjab is less layers of management to pass a message through, so the message reaches more employees faster. More skillful Group Chief Managers can control a greater number of employees. Bank of Punjab the internal Control environment is showing signs of improvement as compared to previous year in all areas of the Bank.

C. M WingHRM GroupOperation GroupCMGAdmn. WingC. M WingTMGTech WingT & S WingIRD WingOD WingAdmn. WingChairman & President

Bank of PunjabGrade Officers (Group)President (NBP)AVP (Group)SVP or VP (Group)Group Chief (Group) is having Decentralization in the Bank. And give the authority of Decision Making to their Group Chief of every Group, to take decision, which is benefit for the Organization. Bank of Punjab provides facility of making decision to their Senior Vice President as well as Vice President of the every Group.

Bank of Punjab has low Formalization in the bank. And Employees are free to take action or decision in their work specialization. Employees are following the rules and regulation in the bank is very little formalized. Employees behavior is little bit guided by rules and regulation. Bank of Punjab follows the Organic Model Organization. In BOP, there are Cross- Functional teams, as well as Cross-hierarchical teams. There are free flow of Information and Wide span of Control. BOP is Decentralization in nature and very low formalization in the bank. Basically it is high diagonal Differentiation and every employee of any department can easily communicate to other department of the Bank.Comment on Organizational StructureDivision of Labor The structure of the Bank of Punjab is divided into division and these divisions are further divided into departments. This type of structure helps the management in controlling the operations of the bank effectively. Each division is responsible for its respective duties. Span of Control Span of control among hierarchical structure is clearly defined. Each department reports to the central department and then this central department reports to the head office. Communication Communication among the organizational departments is easy. Horizontal and vertical communication among departments is very effective.

ORGANIZATIONAL NETWORK

In this section topics are:

Registered and Head office Share Registration Office Share Capital Branch Network Global Network Domestic Network Present Status of Bank

ORGANIZATIONAL NETWORK

REGISTERED & HEAD OFFICE

Head office of BOP, BOP Tower, 10-B, Block E-11, Main Boulevard Gulberg-III, Lahore.

SHARE REGISTRATION OFFICE

M/s. CORPLINK (Pvt) Limited, Wings Arcade,1-K, Commercial, Model Town, Lahore.

BRANCH NETWORKPresently the Bank is divided into 10 Groups headed by SEVPs/EVPs. 20 Regions reporting to as many Regional Chiefs and Branch Zones headed by Zonal Chiefs; 12 corporate branches and 284 domestic branches headed by Branch Managers control its field operations.With the geographical development of its branches, the Bank has been able to extend its services to a much larger number of Pakistanis all over the country. Today it has more than 8.5 million accounts. Bank maintains its presence in all the major financial centers of the world through its 18 overseas branches.

PRESENT STATUS OF BANKThe new management team having extensive experience of management of large financial institutions both within and outside the country is expected to further enhance the profitability and operational efficiency of the Bank.ProspectsThe Bank's principal strategic going forward objective is to make the transition from a public service institution to a modern commercial bank. Being the country's largest financial institution, the Bank is uniquely positioned to leverage its large branch network and its 8.5 million-customer base to consolidate its core businesses as well as develop new revenue generating opportunities. The new management team is in place combining the Bank's existing personnel with professionals recruited from outside. Operating procedures are being re-defined and internal controls strengthened utilizing a revamped IT architecture. A brief on the progress on some critical areas is as follows:Corporate & Investment BankingA new approach to corporate banking is underway. The Bank has initiated a structured approach to corporate banking by introducing a single point of contact through Relationship Managers (RMs). For this purpose, new RMs as well as team leaders have been inducted to expedite this process. Area Managers will be appointed to manage relationships and to better service the needs of multinationals and large local corporate.In investment banking team has also been formed to offer specialized services to major relationships including advisory and debt syndications (TFCs). Furthermore, to stem the growth in non-performing loans, the existing risk / credit management practices at the Bank are being revamped.Treasury / International BankingThe deregulation of foreign exchange treasury business has ensured that a growing Volume of business now flows through the inter-bank market where rates are determined by the market forces. This can prove to be an immense profitable proposition for the Bank. Towards this objective, the Bank is shifting focusing on expanding its market share in trade finance, home remittance and foreign investment related forex-denominated flows.

MANAGEMENT OF BOP

In this section topics are: Management System New Management Structure Corporate Information Board of Directors Audit committee Auditors Legal Advisors Senior Management

MANAGEMENT OF ORGANIZATION

Management is the distinct process of planning, organizing, actuating and controlling performed to determine and accomplish stated objectives with the use of human being and other resources.MANAGEMENT SYSTEMThere are two types of management: Centralized DecentralizedCentralized tends to concentrate decision making at the top of the organization.Decentralized disperses decision making and authority throughout and further down the organizational hierarchy.Management StructureThus therefore, all nationalized commercial banks are controlled by the Pakistani banking council being subject to State bank of Pakistan regulation as well. The federal ministry is responsible for bank operations in the ministry of finance. Recently by the order of president of Pakistan, banking council of Pakistan is removed.Board of Directors An executive board composed of six senior executives of the bank and the president who is also the chief executive supervises the affairs and business of the bank, called the Board of Directors. Management CommitteeAlso there is a Management Committee consisting of nine senior executives of the bank, called the members and the president who is also the chairman of the committee.Training and Management Development WingBank of Punjab has its 3 training and development centers. Lahore Islamabad Karachi In these centers the banking training is provided to the officers, managers, and to the potential managers. It arranges courses and seminars for middle and higher management.CORPORATE INFORMATIONBoard of DirectorsMr. Ghafoor Mirza Chairman

Mr. Naeemuddin Khan President

Mr. Javaid Aslam Director

Mr. Tariq Bajwa Director

Mr. Tariq Mahmood Pasha Director

Khawaja Farooq Saeed Director

Mr. Saeed Anwar Director

Mr. Junaid Ashraf Khawaja Director

Mr. Raza Saeed Sectary to the board

Central Audit Committee Khawaja Farooq SaeedChairman

Tariq Mehmood PashaMember

Saeed AnwarMember

AuditorsM. Yousuf Adil Saleem & Co.Chartered accountant

DEPARTMENTALIZATION

In this section topics are: General Banking Department Deposit section Accounts opening section Lockers services Cash dealing section Clearing section Remittance section Advances department Accounts department Government Receipt & Payment Department

DEPARTMENTALIZATION

Dividing an organization into different parts according to the functions is called departmentalization. BOP branch offer a wide range of services to public and private sector.The Bank Of Punjab has various departments. Brief description of all these departments is given here one by one under. General Banking Department Account opening Section Deposit Section Cash Dealing Clearing Section Remittance Credit and Advances Department Accounts Department Government Department Consumer & Retailing Department Foreign Exchange Department Import and Export Department

GENERAL BANKING DEPARTMENTGeneral banking involves the following sections1. Deposit Section2. Accounts Opening Section3. Cash dealing Section4. Clearance Section5. Remittance Section6. Lockers Handling SectionDeposit SectionDeposits are the lifeblood of banks. The main function of a commercial bank is to mobilize deposits of money from the savers and lend into for most profitable purposes. The process of collection deposits is deposit mobilization. Commercial bank donor receives these deposits for safe keeping purpose only but they accept deposits as debts. When bank receive deposits from a customer becomes a creditor and the bank is debtor. When the bank receives the amount of deposits as a debtor, it becomes the owner of it but there is an implicit agreement that the amount owned would be paid back by the bank to depositor on demand or often at specified time.The classification is based on duration and purpose for which the deposits are to be kept at the bank before the depositor can withdraw them. Deposits should be divided into two categories.There are two categories of deposits: Time deposits Demand deposits

Time DepositsDemand Deposits

These are payable on maturity Receive profit with respect to time period All TDRs, saving accounts and other profit bearing accounts are included. These are not payable of maturity but on demand No profit is given on demand deposits They include current accounts and call deposits etc.

TYPES OF ACCOUNTS1. Current Accounts 2. Saving Accounts3. Call Deposit Accounts 4. Fixed Accounts5. Foreign Currency Accounts

1. Current Account

This account is also known as running balance account. Simply we can say A bank account which may be used to lodge payments or to withdraw money on demand.Its main purpose is to serve the businessman. Form is provided to the person to open the account. It is a statutory requirement to maintain current account.

Its main features are: - Minimum amount for opening this account is Rs.1000 Any person can open the account with the bank. According to inter banks agreement interest is not paid on current account. Bank act as custodian of money. Over draft facility is provided to the customers. Customer can withdraw money through cheque supplied by bank. No limitation to the number of withdrawal. No zakat is deducted on current account

2. Saving account / Basic Bank Account (BBA)BBAs are opened on proper introduction and submission of required documents. BBAs are opened for individuals single or joint only. Free ATM issuance Minimum balance is 1000/-. In BBAs maximum two deposits transactions and two chequing withdrawals are allowed free of charge through cash/clearing in a month. Nil accounts are closed after 3 months

This type of account is designed to encourage the saving habit of the customer and lead to a long-term banking or investment relationship. Bank saving accounts are in the nature of deposits accounts and are not normally available for drawings. Rates of interest are typically ahead, by a small margin.

BOP offered the three types of saving accountsa. Profit and Loss Sharing/Saving Account (PLS Acc)b. National Income Daily Account (NIDA account)3. Call Deposits Call deposits are the sorts of deposits, which are deposited in the bank against any tender. This is without interest deposit and may be with interest provided. The depositor has agreed to keep this amount with the bank for some fixed period.

4. Fixed Deposit Account

This account is the major source of funds for the banks. This account is best for people who have surplus money and dont need such funds in nearer future. The rates on this type of deposits are higher than the saving bank accounts.

5. Foreign Currency AccountsThese are the accounts in US $, Pound, Euro, yen etc. of different account holders and either saving or current accounts. Profit is fluctuating as determined by the State Bank of Pakistan on six monthly bases whereas return on Term deposits/SNTD will paid on maturity. The transactions in these accounts are translated into Pak. Rupees at the exchange rate prevailing on the date of transaction.

Account Opening SectionAccount opening section of the bank can be considered the most important department because banking starts with the account opening. Every customer of the bank either he is of credit section or foreign section or any other department must have his account in order to get benefit and transaction with the bank. Therefore it is considered the most important section of the bank. Account opening officer take special consideration for the proper recognition of the customers. This section performs the following functions: Opening of Accounts Issuance of cheque books Closing of accountsCLOSING OF ACCOUNTS Account Closing by Customer Account Closing by Bank

Locker Services Section BOP also provides lockers facility in the country. It means a box operate by a customer of holder on permanent basis. Locker operation account is allowed for a account holder, Non-account holder not able to operate it. There are four types of locker depending upon the size of lockers operate in banks. Small size locker Medium size locker Large size locker Extra large size locker

Cash Dealing DepartmentCash department of BOP is given the complete responsibility of handling all receipts & disbursements of cash as a result of transaction in both local and foreign currencies & near cash items such as traveler's cheque etc. (when they are issued against cash).As a consequence it is also responsible for the book keeping of these transactions & the safe custody of cash and near cash securities of BOP.

Cash department of BOP is separate close part; no one other than cash departments employees is allowed to enter into that area. Cash department performs the following functions. Cash receipts for receive deposits. Cash payment for encashment of cheques.

Receipt The money, which either comes or goes out from the bank, its record should be kept. Cash department performs this function. The deposits of all customers of the bank are controlled by means of ledger accounts. Every customer has its own ledger account and has separate ledger cards.Payments It is a bankers primary contract to repay money received for this customers account usually by honoring his cheques.Types of collected Cheques Bearer Cheques Bearer cheques are cashable at the counter of the bank. These can also be collected through clearing.Order Cheques These types of cheques are also cashable on the counter but its holder must satisfy the banker that he is the proper man to collect the payment of the cheque and he has to show his identification. It can also be collected through clearing. Crossed Cheques These cheques are not payable in cash at the counters of a banker. It can only be credited to the payees account. If there are two persons having accounts at the same bank, one of the account holder issues a cross-cheque in favor of the other account holder. Then the cheque will be credited to the account of the person to whom the cheque.Clearing SectionClearing"The transfer of funds from one branch of bank to the other branch of the same bank or the other bank on which the instrument is drawn , without involving cash through State banks clearing house "We can say that cheques which cannot be cashed at the cash counter of the bank or cross cheques go through the clearing process. Clearing Department

The major function of Clearing Department is to receive the cheques, which are drawn on some other bank. The customer can get the money in his account at BOP, from the cheques drawn on another bank. The bank accepts these cheques and collects the amount from that bank on which cheque is drawn through the Clearing House. Bank charges some commission for this function.Clearing HouseA clearing house is an association of commercial banks set in State Bank of Pakistan for the purpose of interchange and settlement of credit claims.National Institutional Facilitation Technology (NIFT) Pvt. Limited is performing the function of clearing and charges commission against it. Before the NIFT, the State Bank of Pakistan (SBP) with efficient controlling staff performed the process of clearing. If SBP had no office at a place, then NBP, as a representative of SBP acted as a clearinghouse.NIFT is a joint venture between a six major banks and private sector. The clearing operations were commenced by the establishment of first centre at Karachi and now it has been extended to all major cities of Pakistan. At such places where the area is not covered by NIFT the clearing and settlement services are provided by National Bank of Pakistan.TYPES OF CLEARING Local Clearing Short Credit Service Local Short Credit Inter City

Local Clearing

All cheques and other Negotiable Instruments payable locally is presented through the local clearing system. NIFT provides the local and intercity services. Cheques deposited at branch counters presented for clearing on the same day. Bank give credit to the customer's account on the day when clearing settlement takes place. No charges levied for local collection of cheques or instruments which are collected through local clearing.

Time Frame The customer's account credited in respect of local cheques on next day from the date of acceptance of the cheque. Short Credit Services (SC)

For small cities where there are no NIFT services then branch bank clears the cheque either through mail/ TCS or bank can own provide service and charge commission for providing services. Bank give credit to the customer's account on the day when clearing settlement takes place. Time Frame The customers account are credited in respect of outstation cheques on 4th 0r 5th day from the date of acceptance of the cheques.Local Short Credit (LSC)

This arrangement has been set up if the customer wants amount in his account on urgent basis. Bank then provide service to its customer for those in house cheques when presented and draw on BOP. Both can be of different branches of the bank but must be located within the city. No Bank charges are recovered from customers for these services. Time Frame The customer's account credited in respect of local cheques on the same day from the date of acceptance of the cheque.Inter City

NIFT Pvt. limited is responsible for the clearance of the outstation cheques. Cheques drawn on bank's own branches at outstation centers or outstation other banks both are collected using the inter city arrangements maintain by NIFT network. Its offices are present in all the large cities of Pakistan. NIFT network is present in: Islamabad KarachiTime Frame The customer's account credited in respect of local cheques on the 2nd day from the date of acceptance of the cheque.CLEARING PROCESSThe process of clearing is carried in two categories.i. Inward clearing ii. Outward clearing

i. Inward Clearing

Cheque received of other parties after clearing are lodged in the system by vouching date, signature, documents numbers is noted. The cheque without sufficient balance, changing in amount, signature and verifying other formalities returned to the customer by attaching return memo explaining the cause of cheque return. Return cheques also enter into the return register by writing dates, causes of return, and amount. After posting summary of cheques is prepared and cheques return to third parties through NIFT.ii. Outward Clearing

These are the cross cheques deposited by the customers for credit the same amount to its account. Before posting following is being performed. Crossing cheque stamp if not place it. Title of account and account number from deposit slip is checked. The deposits slip is handed over to the customers by branch stamping. Entry is done in daily register. Add list is being prepared. Special crossing clearing stamp of next day is affixed. The payees amount will credit stamp is affixed on back of the cheque. In case of outside city clearing Inter-Branch Clearing Stamp is affixed. Place all the cheque in a bag with special closing and sent to NIFT.

Excess of outward clearing over inward clearing produces a net increase in clearing account balance. Excess of inward clearing over outward clearing produces a net decrease in clearing account balance. The first case is reffered to as favorable clearing & the second case is unfavorable clearing.Remittance SectionRemittance means a sum of money sent in payment for something. This department deals with either the transfer of money from one bank to other bank or from one branch to another branch for their customers. BOP offers the following forms of remittances.Main modes of remittance are: Pay Order Mail Transfer Demand Draft

PAY ORDERPay order issued from one branch is only payable from the same branch. It is issued for payment in the same city.MAIL TRANSFERThe same application form is used for draft and mail transfers generally in BOP. The mail transfer is not delivered to purchaser but instead the issuing office to beneficiarys branch on its own risk and responsibility sends it. This type of remittance facility is provided only when the beneficiary happens to be customer of the bank. It is the quick and safe mode of transfer of funds. Application form submission is same as DD. In MT funds are transfer through system within seconds if 2nd branch is online. Funds transfer only same branch of the banks. It is necessary that the customer must have the Branch Code of the host branch, account number of a drawer, name of place, etc. Inter-Branch Clearing Advice is involved.DEMAND DRAFTA method used by individuals to make transfer payments from one bank account to another. Demand drafts are marketed as a relatively secure method for cashing checks. It is made for both account holders and non account holders. Secret test apply on DD. If the amount is less than 5000/- Rs. then test will not apply.

ADVANCES DEPARTMENTAdvances department is one of the most sensitive and important departments of the bank. The major portion of the profit is earned through this department. The Credit Management Division of Head Office directly controls all the advances. As we known bank is a profit seeking institution. It attracts surplus balances from the customers at low rate of interest and makes advances at a higher rate of interest to the individuals and business firms. Credit extensions are the most important activity of all financial institutions, because it is the main source of earning. However, at the same time, it is a very risky task and the risk cannot be completely eliminated but could be minimized largely with certain techniques. TYPES OF ADVANCESi. Demand Finance

One time disbursement of the whole amount sanctioned, as the limit for the credit allows. Any person, individual, group, company, firm and all others can achieve this Mode of financing. The mark-up or interest is calculated on the total amount disbursed and requires to be paid before the date of final adjustment. Regarding the amount, limit and period, it depends on the nature of the case in review. ii. Cash FinanceIn this mode of financing the borrower is allowed to make withdrawals of funds as he requires, but the total amount outstanding cannot exceed the limit sanctioned. The mark-up/interest is calculated on the amount outstanding on his account. The calculation of mark-up/interest is based on the number of days a specific amount is withdrawn. This finance if normally borrowed by small traders or individuals for their petty matters involving cash transactions up to rupees three hundred thousand maximum.iii. Running Finance

To assist a large-scale business operator to carry on his day to day requirements of liquid funds, this account is opened is made operation in his favor. Running finance is provided where the amount goes beyond rupees three hundred thousand. The mark-up/interest is calculated the same way as in case of cash finance. Security against running finance is that which is easily convertible in to cash and bank kept 25% margins with it.iv. LoansWhen a customer borrows a fixed amount from a banker repayable either in periodic installments or in lump sum at a fixed future time, it is called a "loan". When bankers allow loan to their customers against collateral securities they are called secured loan and when no collateral; security is taken it is called "clean loans"Types Of LoansThe credit department of NBP has providing the following types of loans Short term loans Long term loans Working capital loan Syndicate (project) loan Monitoring

ACCOUNTS DEPARTMENTThe main function of account department of BOP is to maintain general ledger accounts and after the business hours the function of the account officer is to close books. There are many other important functions performed by accounts department of BOP so broadly they can be categorized in three heads Routing of expenses vouchers. Preparation of daily activity reports. Preparation of weekly and monthly statements. Preparation of statements for tax purpose.

ROUTING of EXPENSESVouchers of all expenses and material purchases are routed out through this department. As far as the expenses are concerned, they include the Heads of salaries paid to confirmed employees of bank. Wages paid to employees that are on contractual basis. Rent of the building. Lease installment. Insurance premium paid to insurance company for the insurance of vehicles and cash in safe and counter. Utility bill, which consists of courier, electricity, water and gas bills. Medical expenses.

Voucher SystemVoucher is written authorization sued in approving a transaction for recording and payment. Voucher is a system, which is generally designed to provide strong internal control over the transaction, which takes place during the business hours. It is prepared whenever. A transaction takes place in any department of the bank. One debit and one credit voucher is prepared At the end of the day these vouchers are collected and recorded,

In bank two vouchers are usedi. Debit Voucherii. Credit Voucher

Debit VoucherDifferent types of debit vouchers are used by the bank as an evidence of the transaction. For identification they are differentiated by using different colors.Credit VouchersDifferent types of credit vouchers having different colors and format are used by the bank. There are three types transaction in which credit vouchers are used.PREPARATION OF STATEMENTSSecond major function of accounts department is the preparation of various statements. These statements are:Weekly statementsThese weekly statements are sent first to BOP head office Lahore. These statements are generated on weekly basis for the purpose of sending it to Head Office. These also include: Statement of affair Deposit and advances position of the bank

Monthly statementsThese monthly statements are sent first to BOP head office Lahore and then these statements are sent to head office in consolidated form. All vouchers and statements signed and approved by manager accounts or who has authority to sign on behalf of the bank and whose signature appears in one of the banks book of specimen signature of a person who has authority to sign internal vouchers and record extents of its authority will be made by the counter manager. All vouchers prepared by different relative departments on computerTAX PURPOSE STATEMENTThe department also prepares two statements for the purpose of paying tax on monthly and annual basis. These statements are generated for the purpose of submitting to Central Board of Revenue. These are: Statement of deduction of income chargeable under the head salary under Section 53 (Tax deducted at source) Withholding Tax from the payments made to vendors, suppliers and other parties providing various services. The rate of withholding tax is as follows: Suppliers 3.5% For other parties 5%

BILLING & GOVERNMENT RECEIPT/ PAYMENT DEPARTMENTIn this department all types of Government receipts i.e. Revenues, Taxes, Agriculture Tax, Government Fees, EOBI Funds and Utility Bills are deposited. This way NBP is serving great job of revenue collection and charges commission for providing services. This department is performing following functions Payment of Provident Fund. Payment of Benevolent Fund. Payment of pension. Collection of utility bills. Collection of property taxes and Challans. Collection of dues of education institution. Payment of salaries. Payment of zakat.

The investment by the BOP in the provident fund for the benefit of their employees in 2012 is Rs. 8507300/- and in pension schemes reached to Rs. 17738992/-PAYMENT OF PROVIDENT FUNDProvident fund are maintained by many organizations for the benefit of their employees. There are three types of provident fund granted by the organizations. Government provident fund maintained by government institutions. Recognized provident fund: fund maintained by private organizations fulfils the conditions maintained by law. Unrecognized Provident Fund: fund maintained by private organization which has not been granted recognition by law.BENEOVALENT FUNDThe Funds are utilized for the relief of Government servants and their families by giving financial assistance to the families of deceased Government servants; to Government servants invalided out of service. COLLECTION OF UTILITY BILLSBOP as an agent of the SBP collects bills from the general public and charge commission for the services rendered. The commission on each type of bill is Rs. 8/- per bill. The branches collect the utility bills and the proceeds are then send to head office through Mail Transfers.PAYMENT OF PENSION Pension is the Post-retirement benefits that an employee might receive from some employers. It is a payment, not wages, made regularly to a person who has fulfilled certain conditions of service, reached a certain age. The date up to which pension is payable may vary depending upon the employee services. It can be payable for Life, Death , Remarriage.Types of Pensioni. Employment based Pensionii. State Pensioniii. Employees Old Age Benefits Employment-based pensions A retirement plan is an arrangement to provide people with an income during retirement when they are no longer earning a steady income from employment. Often retirement plans require both the employer and employee to contribute money to a fund during their employment in order to receive defined benefits upon retirement. The Government of Pakistan has been introduced two types of pension are given to the employees on retirement on the basis of the services which they have rendered.

Retirement Pension: This pension granted upon 25 year of services. Superannuation Pension: This pension granted upon 30 years of services.

State pensionsMany countries have created funds for their citizens and residents to provide income after their retirement. Government of Pakistan has been introduced pension for their employees which are working in the State Institutions; e.g WAPDA, WASA, PIA etc.

COMMERCIAL & RETAILBANKINGIn this section product line offered by the BOP is shown: Commercial Banking Retail Banking Product Line Deposit Products Profit Loss Sharing Term Account Consumer Finance Commercial Finance Electronic Banking Services Agriculture Credit Trade Finance

Commercial BankingThe Commercial Banking Group has been formed to cater the needs of small & medium size customers for increasing Banks business significantly with clear focus, repositioning of resources and active marketing to improve Banks profitability. Commercial Banking will deal with customers having sales turnover and aggregate credit exposure as per benchmarks prescribed in the SBPs Prudential Regulations.This Groups emphasis will be to meet necessary business needs of customers which are numerous as compared to CIB clients but their individual credit requirements are relatively much smaller. In view of this peculiar nature of this business segment that involves a higher turn over a much wider network is needed. The SME will concentrate on rebuilding its set up which suits to its peculiar needs on all locations.

Retail BankingCustomers are always the top priority for Retail Banking, and we offer a range of solution-driven and cost-effective products and services that cater to all segments of society. We believe in excellence and innovation. RBG has been striving to capitalize on the right opportunities for a mix of the population; we provide solutionsWith our strong presence through our wide spread network of 284 branches all over Pakistan, we offer a wide and innovative range of banking services, with a mix of value added services like Automated Teller Machines and Virtual Retail Banking, known asOnline Banking. To facilitate overseas Pakistanis, we provide Home Remittances services in all branches.Our customers are what make us a true peoples bank. We offer our expertise to all segments of the society, including dedicated products for senior citizens, ladies, agriculturists and minors, besides various products for business concerns.

Deposit Products Current Account Basic Banking Account Tijarat Account Supreme Current Account Young Loin Saving Account

Profit Loss Sharing Term AccountProfit and Loss sharing Term Accounts offered by Bank of Punjab are: PLS Saving Account Senior Citizen Account Gharayloo Saving Account Ziada Munafa Saving Account PLS-Saving Profit plus Account Corporate Premium Account Supreme Saving Account (PLS) Supreme Saving Account (FCY) Consumer Finance Types of consumer finance offered by Bank of Punjab are: Aasaih Loan Quick Cash Car Loan House Loan Small Cash Personal Loan BOP Motorcycle Loan Commercial Finance The Bank of Punjab offers following Commercial Financing Loans: Running Finance Cash Finance Demand Finance CNG Filling Station Scheme Auto Lease Financing Scheme Car Lease Financing Scheme Karobar Barao Scheme Fertilizers Dealers Financing Scheme Ali Akbar Group Franchise Financing Scheme Atlas Honda Limited Authorized Dealers Financing Scheme Financing Schem Purchase of Office/Shops Electronic Banking Electronic Banking provides non-stop banking convenience, twenty four hours a day, seven days a week. Visa Debit Card Internet Banking ATM Network BOP Quick pay Call Center Services The Bank of Punjab is dedicate in its efforts to provide a quality banking experience to our customer via a range of unique Banking Services Commercial Banking Online Banking Cash Management Services Utility Bills Lockers Treasury Western union Money Transfer Agriculture Credit Agriculture credit is provided to the farmers and livestock organizations. Bank of Punjab provides following agriculture loans with a specific markup rate: Green Tractor Lease Finance Agri Finance Branch Agri Finance Scheme Kissan Dost Finance Scheme Second Hand Tractor Lease Finance Scheme Kissan Dost Aabiari Scheme Kissan Dost Mechanization Support Scheme Kissan Dost Farm transport Scheme Kissan Eslahi-e-Erazi Scheme Kissan Dost Live Stock Development Scheme Livestock Breed Improvement Trough VVW Kissan Dost Commercial Agro Services Kissan Dost Agri Mall Finance Scheme Corporate Farming Finance Scheme Commercial Lease Finances Tractor Scheme Demand Finance Sheds Construction and Civil Work Lease Finance Facility for Milked Animals Running Finance Livestock Poultry Kissan Dost Model dairy Farms (PDDC) Kissan Dost Model Milk Centre (PDDC) Kissan Dost Green House Finance Facility Kissan Dost Cold Storage Finance Facility Scheme for Controlled Shed Lease Finance Facility for Installation of Bio-gas Plant Group Finance to Small farmers Clean Credit Facility through Syngenta Franchises Zarkaashat Drip Irrigation System Markup of Schemes Trade Finance Trade finance is a loan provided to the importers and exporters to make their transaction effective. This enhances the global business. The Bank of Punjab makes some trade processing centers to cooperate the exporters and also to the importers in different cities of Pakistan such as Lahore, Islamabad, Rawalpindi and Karachi. Trade Processing Centers Functions of Trade Processing Centers

SWOT AnalysisSWOT analysis stands for the Strengths, Weaknesses, Opportunities and Threats. It is the evaluation of organizations internal strengths and weaknesses as well as its envoirnment opportunities and threats. In SWOT analysis the best strategies accomplish an organizations mission by: Exploiting an organizations opportunities and strength Neutralizing it threats Avoiding or correcting its weaknessSWOT analysis is one of the most important steps in formulating strategy using the organization mission as a context, managers assess internal strengths distinctive competencies and weakness and external opportunities and threats. The goal is to then develop good strategies and exploit opportunities and strengths neutralize threats and avoid weaknesses.

Strengths1. Firstly it is upported by the Punjab Governent, it build the people trust.2. Bank of Punjab is rated among top six banks in Pakistan in perspective of remittance business as compare with other province banks.3. BOP is performing Positive roll in economic progress through the operations and innovative products.4. BOP is working as right arm government of Pakistan as it is responsible for all claims of government for recovery as well as payment. All depositor of BOP are in relief that their money security is guaranteed by government of Pakistan. 5. It acts as an agent of the Central Bank wherever the State Bank does not have its own Branch.6. The working condition in the BOP branch here is very conductive and favorable for better output. The informal environment affects the performance of the employees in a positive way.7. Earning commission from SBP on Government transaction.8. Facing never problem of cash/currency being its Chest and Sub-chest.9. Holds largest deposit base in the market share in terms of number of accounts.10. Leading bank in agriculture financing amongst commercial banks with the market share of 15%.WEEKNESSES1. Lowest Internal Control and Compliance System, SBP rated Marginal which is alarming for the Bank.2. Unsatisfactory corporate culture of the Bank.3. Physical environment and atmosphere compare to other banks is not meet the standard.4. Less number of Online Branches.5. Ineffectively use of technologies i.e. Information technology.6. Shortage of staff- per employee customer is very high side.7. Technical education and training of staff is insufficient The workload in NBP is not evenly distributed and the workload tends to be more on some employees while others abscond away from their responsibilities, which server as a demonization factor for employees performing above average work. 8. In BOP the individual difference have strong impact on the organizations performance due to the wrong criteria of selection of the employee. So with the passage of time individual differences are increasing which are undermining the good will of the organization. 9. Uncertainly among the employees due to threat of downsizing.OPPORTUNITIES1. Being a Government Bank BOP having wide scope in economic market.2. Trust and reliability creates chances to enhance deposit and profitability.3. Its vast network of domestic branches can help to expand business.4. Banks deposit is increasing rapidly so there is a great opportunity to enhance its investment and financing.5. Being an agent of State Bank of Pakistan it can play vital role in local economy.6. Earning commission/exchange on Government transactions.7. The bank is reshaping its portfolios by investing into higher area of growth developing core competing as a result to get maximum return. 8. I.T and HR are important factors for development in any organization, BOP continue struggle to achieve this target. THREATS1. SBP penalties due to low internal control and compliance.2. Government, SBP and Prudential Rules and Regulations.3. Schedule banks and Multinational/International banks profit rates.4. Its staff switching over to other private banks due to more facilities.5. Other banks charming atmosphere and relaxation in documentation.6. BOP staff code of ethics and practices.7. Government Schemes, Government Revenue Collection.8. Payments and FBR Collections create heavy workload.

WORK PERFORMED

In this section topics are: Lesson Learned and Personal Experience Branch Profile Introduction of Branch Branch Hierarchy Training Departments Remittance and Account opening Deposit Section Pension Section Cash Section Use of Information Technology Issues Faced by the Branch

LEARNING AND PERSONAL INTERNSHIP PROGRAMMEIn University of Gujrat, the students are required to undergo for six weeks of internship to complete the internship program. For this reason, I carried out my internship in Bank of Punjab, Circular road Branch, Gujrat and tried to prepare my report.This branch was founded in 2000. From last many years this branch is not only achieving its targets of deposits and advances rather it remains above the targets. According to the financial record of last year this branch was earning more than 20% of total profit of the region.Every year the targets of this branch are increasing by 20 to 25 percent but still there is a potential in the market to meet these additional targets. This branch is performing its functions in traditional style but in spite of all challenges and lack of resources the branch is now trying to make most of its activities computerized.During the session of six weeks I work in different departments on weekly basis. The employees of the bank help me and provide me all required information. I studied major functions, objectives and future planning. I worked in different departments during working as an internee which proves to me very beneficial and me able to get basic concepts of banking operations.

BRANCH PROFILEName of BranchBank of Punjab Branch

RegionGujrat

Establishment 2000

Region Code

Branch Code011

AddressBank of Punjab, Circular roadFawara chowk branch Gujrat.

Phone Number053-9260180

Fax Number053-9260181

Name of Manager

Number of Working Staff

Branch category

Starting and Ending dates of internship Starting Date 05 July 2013 Ending Date 21 Aug 2013DEPARTMENTS OF TRAINIGDuring the internship period of 6 weeks I got training in various departments in the branch. This branch do not deals with foreign exchange and online bank but foreign remittance is carried out. The branch is divided into two parts:1. Cash Department2. Operations Manager Department3. General Banking DepartmentGeneral banking is divided into following sections;i. Remittance and Accounts Opening Sectionii. Deposit departmentiii. Pensioniv. EstablishmentBut I did my internship in deposit, remittance, pension and cash sections. The computer system was not allowed to me due to the secrecy and rules of the management. A brief introduction of the departments in which I performed my work is as under:

1. General Banking Department

i. Remittance and Accounts Opening SectionIt is transfer of money payable at a certain place within or outside the country through various way i.e. Bank draft, Telegraphic Transfer, Mail Transfer, Coupons, Govt. Draft. It works both inward and outward. It was my first department. Mrs. Rana Ahsaan-ul-Haq is the controller of section who is a very competent person. Duties performed by him are; Issuing of demand draft Issuing of Mail transfer Issuing of Telegraphic transfer Issuing of payment order Issuing of call deposit Closing of government collections Intercity and Short Credit Clearing Accounts opening Issuance of cheque books Handling of lockers Maintenance of outward Mail Register Issuance of Benevolent fund In this section I learnt about issuance of PO, DD, MT, and T.T. I made all the four categories of funds transfer. Sir. Rana helped me a lot to achieve this target. I only made vouchers of PO, CDR and DD. The Manger only does TT because it is a secret way of transfer funds. I sorted all the daily remittances; handed them to the respective officers. Sir Rana helped me a lot in general understanding of the bank functioning.I prepared several cheque books and enter the detail into the cheque books issuance register. I also learnt to cheque posting on system. In the cheque book posting something which are necessary, account number, cheque number and amount to be debit or credit should be matched. D.D & P.O: P.O is used locally and to transfer amount within the city whereas D.D is used for outside the city.Demand draft:Procedure First on the request of the customer all the details for issuance are demanded from customer The customer can be account holder or non- account holder. While issuing the bank draft the care is taken that draft should be free from alternations. All the details must be clearly written in ink. After deduction of charges, issuance of demand draft is handed over to the applicant . Its advice containing the particulars of the draft is sent to the drawer branch with its necessary information and payment of draft is make on its presentation.

Payment orderProcedure Two applications forms called credit vouchers for payment and for bank commission are made. Application form is attached with cheques debit authority or make payment in cash. Then the payment order is made. Then payment order is given to the customer. Pay order for clearing again come to Bank of PunjabMail transferThis is the facility just for account holders. Amount of M.T & T.T is transferred in account of payee. Mail transfer is time consuming while telegraphic transfer is fast.Procedure Filling of application form. Then make payment. Preparation of M.T advice. Then fanfold is made on F15. M.T advice plus fanfold ( red copy ) is sent to responding branch. M.T code is 22.Telegraphic Transfer:Procedure Filling of application/ request form. Then payment is made. Then make massage voucher (telephone number is written at top of it ). Then telegram transfer confirmation is made (F-15). Massage is sent immediately by fax and T.T confirmation is sent by telegram. F15 blue is filled and original red is sent to responding branch. T.T code is 21.

Accounts OpeningIn this department, I also gain the practical knowledge about account opening also, as this department also deals in opening account and saving account for its customers and all matters regarding thereof. The customers mainly opens current and saving account and these can be opened by Individual , firms , Company , Trust , staff etc. I got training in this department for one week and after understand the basic concept I practically opened account of walk-in-customers.Procedure Customer fills A/C opening form prescribed by the bank. Then he submit the I.D card copy and other related documents Specimen signature card is filled 2 officers attested the form. The form is entered into computer and account opening register. The amount in Rupees is submitted in new account. Then letter of thanks is send to customer. When letter is send back to bank by customer then bank issue cheque book to customer. Deposit SectionAll banks depend on deposits. It is a very important department where customers deposit and withdrawal their money. Banks use this money for loaning on higher rate to earn profit. Mr. Shahid with his colleague Miss. Shazia has been performing the activities of this section. The main function of this department are Maintaining records of saving, current, call deposit, and NIDA account holders. Record of signatures of account holders. Record of balances of customers. Scrutiny of cheques issued. Withdrawal through order/berarer cheques. Local clearing. Preparation of accounts holder activity report.

Procedure of WithdrawalsThere is a complete process in case of cash withdrawal. Customer deposited cheque in deposit department for withdrawals or transfer of amount through cross cheques. The deposit department verifies the signature of the account holder through SS and other requisites of the cheque. In case of any discrepancy the cheque is returned to the customer. The deposit department checks the balance in the account of the customer through computer in BBO. If the a/c of the account holder has balance equal to the cheque amount they passes the cheque to cash department and post a Cash Paid stamp on it. Deposit department debit A/C holder in computer and cash scroll register. The cash department pays the amount to the customer on counter and cancels the original cheque.SS cards verification is one of the most difficult works of this department; I also go through only specific activities in which the heads of verified informed me.Procedure of Cross chequesWhenever customer deposit amount in his account through cross cheques or security documents by transferring he has to fill the cheque pay-in-slip and is deposited into the deposit department. The deposit department after verification and scrutiny of cheque passed the cheque to remittance department.Pension SectionMr. Touqir Ahmad is the head of pension department. The following activities are performed by her; Maintenance of Pension Register Scrolling of Pensions Paid Arials in case of any increase announced by government Maintenance of the Inward Mail RegisterDuring my internship, I learnt how to handle with new pensioners cases, entries made into the pension register, recommend payments of pension on monthly basis, transfer of payments into the accounts of the customer. The most obligatory thing for payment of pension is to check pension slip in form of cash payment P.P.O.No., name of the pensioner, signature, and payment period. In case of pension holder does not come to receive, it is legally recommended that the pensioner holder issue authority letter to the desire person otherwise pension will never be paid in cash. 2. Cash DepartmentThis section deals with;i. Cash PaymentPayments are the function that they pay their cheques and pay cash.ii. Cash Receipts Receipts mean collection of utilities bills, taxes etc.Cash Payment ProcedureIn this branch of BOP, this section deals with the withdrawals of the cheques deposit of amount pension receiptProcedureFor deposit: Whenever account holder deposit amount in their accounts they fill cash-pay-in-slip. Then handed over cash and slip to the cahier Cashier after counting amount sign the slip and stamped it with cash received after entering it to the cash scroll register The counterfoil is given to the customer after signing while the adjacent credit voucher is held by the bank

For withdrawals:After the clearance of the cheque from deposit department the customer recived cash from the cahier by giving him token. The original cheque is then crossed by the cashier.

For pension receiptAfter the approval of the pension officer the pensioner comes in this section for receiving cash amount of pension.Cash Receipts Procedure Customer deposited their bills and taxes to cashier Cashier after counting the amount signs the receipts of bill and taxes and affixed stamp of BOP and cash received stamp. A portion of receipt is handed over to customer. The cashier entered the amount into the scrolls. At the end of day all the total and balances of receipts is transferred to the remittance section. Use of Information Technology in Decision makingToday banking is becoming more and more complex with the introduction of new products, services and enhancing regulatory compliance requirements. It is the use of information technology that can improve the customers services and reduce the cost at the same time. BOP adopted IBM Software for service providing motives, the IBM Software categories into two sections. BBO (Bank Branch Office) EBS (Electronic Banking System)Electronic Banking SystemEBS is used for any kind of transaction within the bank .i.e. Receipts and payments, Bills Collection, Tax receipts, etc.Bank Branch OfficeBBO is use for remittances. The use of IBM Software is one of the main purposes of collection electronic data for the bank that further helpful in future in decision making. Now a day, the bank plans for transformation of the entire I.T. architecture by implementing a core Banking Solutions. The bank prepares financial statements, agricultural reports, customers management, risk management and other reports for decision-making purposes. The I.T. system of the bank not only increases distribution capabilities but also simplify internal procedures there by reducing the cost and lead-time for services. Now Branch of BOP is trying to computerize its all of activities for this purpose various aspects of extension and development have been taking into consideration.

ISSUES FACED BY THE BRANCHI got practical experience during the internship which does not match with theoretical concepts in MBA Program. There is some critical analysis:

i. Training: BOP does not facilitate their employees for training of new technologies. This situation creates difficulty for handling new challenge.

ii. Departmentalization: An employee deals with various nature of work.

iii. Staff Attitude: the attitude of staff does not ideal for any organization due to heavy load where public dealing is at large scale.

iv. Work Environment: The work environment was not ideal in branch due to heavy customers visit in a single day.

v. Shortage of Staff: The bank staff is very small. The number of customer is very high. Cash department is suffering very badly and facing great deal of over workload.

vi. Less use of Technologies: Bank staff hesitates to use new technologies especially the cash department.

vii. Communication Gap: I feel that there is communication gap between top management and workers. They have fewer chances to communicate effectively.

viii. Unjustified Appraisal Criteria: No justified appraisal criteria are implemented for annual increase in salary and promotion of staff. That makes employee unsatisfied.

ix. Pensioner's sitting Arrangement: Bank should take step for the sitting arrangement of the old age employees and pensioners for. Also management should purchase more furniture and arrange them in such a way which provides maximum space and convenient especially in deposit department and there should also be convenient sitting place for customers.

x. Need of Telephone Operator: Branch has the problem of telephone operator which can save the time of not only manager but other staff as well. On the other hand banks communication system was not doing well.

DILEMMA FACED BY ORGANIZATION

BOP is the bank for customers satisfaction. But like any other organization it is also not free from problems. In SWOT analysis I have already discussed the major internal weaknesses and flaws of the system. In this topic the most important problems are included which are widely present at the branch level. So the topic is divided into four parts. Problems at the branch. Functional Problems Administrative Problems. Personal managements Problems

PROBLEMS AT THE BRANCH

Customer SatisfactionIn BOP customer dealing is will, but during rush hour the customer has to wait for a long time for their turn. Its quite hard for a new customer or potential customer to get the required information. Poor record management and filing systemI observed in my internship that filing system of branch is not good. When certain record is needed the staff has to struggle to find it out and a lot of time is wasted. Unequal distribution of workWork is not equally distributed. On one hand some employee have to work all day without relaxing while some others have nothing to do at all. This not only creates confusion among employees but also hurting and disturbing for overall setup of the bank.

Marketing visitsThe useful contact is the personal marketing. Such visits are important in informing and perusing the existing and potential customers about the products and creating a sense of belongingness with them.FUNCTIONAL PROBLEM Formal OrganizationFormal organization includes the activities of two or more person, which are cautiously determined groups and coordinated towards a given objective. It provides base when people are able to communicate with other, when they have common purpose and they are willing to work. In BOP, we find a formal organization. More accounts fewer depositsEfficient banking is one which does not emphasize on number of accounts but on greater amount of deposits. BOP is more interested in increasing its number of account irrespective to its deposit. ADMINISTRATIVE PROBLEMS Lack of specialized training BOP does not provide adequate facility of specialized training to their staff. Training is generalized rather than specialized. As the worker finishes his training, he is inducted into a specific field without having great deal of knowledge about the field. Poor job rotationThere is absence of job rotation in branch. A person placed in one department remains their forever. It reduces career opportunities as well boredom and in the end results in career plaguing. The newly recruit should be rated in all department of the banking in order to get familiar with working. Lack of appreciationAnother very important thing which is ignored in the bank is appreciation if the employee on their good performance. If hard work and performance of employees is not recognized and appreciated they become dishearten which results in decline in performance.PERSONAL MANAGEMENT PROBLEMS

Need for better training programNeed of training is greatly emphasized all around the world. Training of the personnel is part of human resource management. It has been noticed that the training program of NBP is not adequate. Developing Managerial LeadershipLeadership is a practical term of visible, clear on objective and communicating better control on financial and administrative matters. Manager is not only responsible for their own units in business, but also in people terms i.e. training, recruiting, grievance handling and taking immediate initiative in crisis situation to take major decision affection the future of the bank and banking community. Recruitment policyHuman resources are the lifeblood of the organization. If the personnel are recruited carefully they can become asset to the organization in the case of carelessness a liability on the organization. Bank is not following its recruitment policy properly due to favoritism, nepotism and political pressure. PromotionsPromotion in BOP is purely on the basis of seniority, so the new young person having high qualification remains behind for quite a lot of time. Top management and staff union put pressure for the promotion of their favorites. TransferTransfer means when a person is shifted from one place to another place. It is done either that person is needed more on the other branch or for improving his skill variety. It is the policy of the Bank to transfer each employee 3 to 4 years. Lack of business communicationThere is no proper way to give information to their customer. To avoid this minor dissatisfaction and tension in the mind of customer, and deficiency of the service, it is recommended that the bank should provide brochures etc containing information in details.

RECOMMENDATIONSAs analysis shows that BOP is a most growing organization with highest return on capital, the bank has been able to strategically manage and build on its competitive advantage, by knowing customers requirements, understanding employees need, modern technology, to making social responsibility and looking towards stakeholders values. But there is further need for improvement. To overcome weaknesses and to maintain its position following recommendations are made: Staff strength should be enhanced and professional qualified persons should be recruited. It is recommended that proper training be provided to the staff members that will ultimately increase the performance of Bank over all. It is suggested that promotion be given to the staff in due time and on the basis of performance to provide job satisfaction. The bank should spend more on renovation of the branches to improve environment and atmosphere to attract the customers. There should be a proper desk for customers information in every branch. Sitting arrangement, air conditioning and new furniture should be facilitated The Bank should introduce the computers software to cope the heavy load of work and better control. All Branches of the Bank must be online. The Bank should increase profit rate on deposits and saving schemes for pensioners and old age citizens. For improvement of internal control and system the compliance wing and surprise inspection system should work more effectively.

These and many other that can make a good set of recommendations, which have to be made possible to escape from the threats and weaknesses and the risks in environment that surrounds the Bank. The management do considers the policy matter that is not helping the Bank, but are still in practice due the absence of prudentially regulated system to protect them and the Bank.Efforts have been made with serious concern to give BOP a status that it has to maintain by having practices of: Right sizing of the employees. By closing unprofitable branches. By introducing a merit based selection criteria. Promotions made conditional with qualifications.

CONCLUSION

The report is all about Bank of Punjab, one of the leading bank of Pakistan banking industry with 284 nationwide and almost 18 branches operating in other countries. It has maximum coverage with facilities of ATM and online banking throughout Pakistan. It is a part of State Bank of Pakistan and it is its major strength. It is providing different facilities to its customers. Inside the bank, in branch banking it has Clearing and Collection Department, Government Receipts Processing Department, Account Opening Department, Remittance Department, Customer Services Department Cash Department, Deposit Department, Advances and Credit Department. These are the most common departments exist in almost each branch. It is offering different deposit choices, advances, credits and securities etc for its customers.Its Human Resource is its major strength that is leading this bank in this way but there is much gap to cover yet. The other strengths this bank has are that it is acting as Agent of State Bank of Pakistan, providing Agency Arrangements for different government organizations include WAPDA and PIA, Profitability and a vide coverage throughout Pakistan through its Corporate Branches. And also it has comprehensive range of products it is offering in market.The challenge it is facing are currently the lack of implementation of rules and regulations that may lead to weak organizational culture, old organizational culture, no regular promotions practices and not much use of IT technology in bank as other are using. There are many workers and employees unions exist in National Bank of Pakistan that use to play organizational politics instead of doing productive work that leads to wastage of time.As analysis shows that BOP is a most growing organization with highest return on capital, largest market share amongst all Pakistani banks and cost to income ratio is the highest in banking sector. But there is further need for improvement to overcome weaknesses and to maintain its position.As far as my internship and experience is concern, I learnt a lot during my internship. I learn a lot about banking practicing in Pakistan, rules and regulations and different procedures followed by banks, the organizational culture and structure of the bank, Bank of The Punjab.

Bibliography For the analysis and the brief history of the Bank of Punjab, his financial Statements, I attain data by using internet from different websites, in which, History of The Bank of Punjab Retrieved 19 August, 2011 from Bank of Punjab web site https://www.bop.com.pk/AboutUs.aspx Product Detail. Retrieved 25 August, 2013 from Bank of Punjab web site https://www.bop.com.pk/Products.aspx http://www.bop.com.pk http://www.sbp.org.pk http://www.business-standard.comhttp://www.sheshunoff.com https://www.bop.com.pk/index.aspx https://www.bop.com.pk/Products.aspx https://www.bop.com.pk/Branches.aspx http://hrweb.berkeley.edu/guides/managing-hr/managing-successfully/performance-management Annual report of the Bank of Punjab 2012 Staff of the bank of Punjab

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