INTERNSHIP REPORT ON

INTERNSHIP REPORT ON

Bank of KhyberJinnah road branch Abbottabad (0113)Submitted by: Naqash Ali KhanRoll # S-11-25Supervised by: Sardar Ejaz Ahmed Government College of Management Sciences Abbottabad

SESSION

2011-2014INTERNSHIP REPORT ON

Bank of KhyberJinnah road branch Abbottabad (0113)Submitted by: Naqash Ali KhanRoll # S-11-25

Supervised by: Sardar Ejaz Ahmed

This internship report is submitted in partial fulfillment of the requirements for the degree of Bachelors of Business Administration awarded by the Hazara UniversityMansehra

Government College of Management Sciences Abbottabad

SESSION

2011-2014Government College of Management Sciences

AbbottabadApproval Committee

1. External Examiner

Mr.________________________

Signature_______________

2. Supervisor

Sardar Ejaz Ahmed

Signature_______________

Assistant Professor3. Head of Department

Mr.Mushtaq Ahmed_________ Signature_______________

PrincipalAbstract Internship report is an opportunity for the students to apply theoretical knowledge and to gain practical experience about public and private organizations and their practices and procedures. Training plays an important part in developing the managerial skills of the people. Every organization is in search of capable & efficient administrators, who are properly trained. This training opportunity is provided to the students of Bachelors of Business Administration through the internship program.I choose to do my internship in BOK Jinnah Road Abbottabad City Branch because of the fact that it is a part of the most successful organizational setup in the country and have had in recent years BOK has shown the will that it wants to stay the best bank in Pakistan with constant innovations in its products and services, and by making use of the emerging technologies.

Two months period is not sufficient to understand the operations of organizations. But still it was a great experience to have a feel of the practical world and keeping in view the limitations of the study, this seems a reasonable attempt. Internship in BOK Jinnah Road Abbottabad Branch was a true learning experience for me. I have exclusively studied and observed the organizational structure, Remittances department and customer services.

TABLE OF CONTENT

CHAPTER NOCONTENTPAGE NO

CHAPTER NO 1INTRODUCTION TO REPORT1

1.1Introduction 1

1.2Purpose of study1

1.3Scope of study1

1.4Limitation2

1.5Methodology of study2

1.6Scheme of study3

CHAPTER NO 2INTRODUCTION TO BANK/Banking 4

2.1Origin of Banking4

2.2Defecation and Purpose of Bank5

2.3Banking in Pakistan6

2.4Historical back Ground of BOK6

2.5Scheduled Bank Status7

2..6The Paid up Capital of the Bank7

2.7Branches in Pakistan8

2.8Vision Statement of Bok8

2.9Mission statement of BOK9

2.10Core Values of BOK10

2.11Objective and function of BOK10

CHAPTER NO 3BOARD OF DIRECTOR S13

3.1Board of Director13

3.3Manpower Position13

3.4Organizational Structure of BOK14

3.5Organization Hierarchy16

3.6Departmentalization of BOK 16

3.7Credit Department:17

3.8Finance Division17

3.9Islamic Banking Division (IBD):17

3.10Internal Audit Division (IAD):17

3.11Information Technology Division 18

3.12Human Resource Division (HRD):18

3.13 Treasury and Investment Division18

3.14Banking Operations Division18

CHAPTER NO 4SOURCES AND USES OF FUND 20

4.1Sources of fund of BOK20

4.2Uses of Funds21

4.3Sources of Income21

4.4Expense of Bok22

CHAPTER NO 5CASH, REMITANCES, CLEARING DEPARTMENTS23

5.1Deposited department23

5.1.1Cash Function by BOK23

5.1.2Opening of Account23

5.1.3Documents Required in account Opening23

5.1.4Types of Account23

5.1.5Nature of Account24

5.2Remittances department24

5.3Clearing of bills26

CHAPTER NO 6CREDIT30

CHAPTER NO 7SWOT ANALYSIS36

CHAPTER NO 8FINANCIAL ANALYSIS38

8.1FIVE YEAR BALANCE SHEET38

8.2FIVE YEAR PROFIT AND LOSS STATEMENT38

8.3RATIO ANALYSIS40

8.4VERTICAL ANALYSIS50

8.5HORIZONTAL ANALYSIS54

CHAPTER NO 9RECOMMENDATION & Conclusion 61

ACKNOWLEDGEMENT

I have great sense of gratitude for the most Beneficent and Merciful Allah who has always helped me in all matters of life. I tried but He rewarded me more than the tried. Billions of Darood-o-Salam upon Muhammad (PBUH) Last Prophet of Allah who is the savior of humanity.

I am thankful to my parents and to their blessings and support and allowing me to intern where I wanted. They have always soothed me, elevated me and their words and dua has floated me in the deep seas of troubles. All of my successes are due to my family. Great tributes to my beloved parents who taught me to strive for Rizq-e-Hilal and always trust in Almighty Allah! My father is my all times mentor.

I would also like to thank my supervisor Sardar Ejaz Ahmed all the staff of Bank of Khyber who gave me the confidence and guided me at every step of my internship period. It was great fun to write this report due to the fact that it was an explanation of what I experienced and learnt during my internship. It gave me a better idea of how things work practically and how important it is to deal with all aspects of FINANCE. This report gave me the opportunity to put into practice of what I had learnt during my internship.

I am thankful to all my teachers and friends whom cheerfulness and guidance is an asset for me.

Naqash Ali KhanList of Abbreviations

BOKBank of Khyber

IDBPIndustrial Development Bank of Pakistan

SBPState Bank of Pakistan

MNCsMulti-National Companies

ADBPAgricultural Development Bank of Pakistan

L/CLetter of Credit

L/GLetter of Guarantee

ATMAuto Teller Machine

APDAssets Product Division

IPDInvestment Product Division

ITInformation Technology

BTFBalance Transferred Facility

NITNational Investment Trust

FCForeign Currency

PLSProfit & Loss Sharing

HRMHuman Resource Management

SBUStrategic business unit

NDFCNational Development Finance Corporation

RTCsRupee Travelers Cheques

AIGPAmerican International Group Pakistan

MTMail Transfer

ETDElectronic Technology Department

MISManagement Information System

FDDForeign Demand Draft

FSFinancial Statement

ETDElectronic Technology Department

Executive Summary

The Bank of Khyber was established through the Bank of Khyber Act passed by the Provincial Assembly in June 1991. It is the only Bank in Pakistan having its head office at Peshawar.My report is comprised upon four section included nine chapters it. 1st section denote the introduction and 2nd is complete detail of bank and 3rd section denote that SWOT analyses 4th section denotes financial analyses & Recommendation of Bank of Khyber (BOK).

Chapter one explains about the introduction of the report. It is discussed that how the internship is important and what a student can learn from it. Chapter 2 is about the historical background of BOK and circumstances in which BOK was established and its growth is discussed here. Also discuses about Objectives, Mission and Vision Statement of BOK In chapter 3 includes Board of Directors and organizational structure of BOK. Hierarchy of staff and Departmentalization of BOK are discuses. In chapter 4th discusses Sources and uses of Funds. And chapter 5th about Cash Remittances and clearing departments of BOK and chapter 6th about credit department of BOK.In the chapter 7 discuses about SWOT analysis. In chapter 8 explain Financial statements are analyzed Common size analysis. Also the performance of the bank has been shown through ratio analysis and trend analysis. BOK Jinnah road branch Abbottabad City is getting better and better with every passing year which shows that bank has sufficient funds to overcome the liabilities. The profitability position shows decline with the passage of every years. It is not good because they have low profit and they will have not much to pay shareholder. In last chapter discuses about consolation and recommendation analysis of BOK like the Forecasting, cost minimizing policy, marketing policy, training programs, Misuse of office equipment and improvement in the branch network etc.