Complete Internship Report (BANK OF PUNJAB)

3. Internship Report
The Bank of Punjab (Dargai Branch KPK)
For
Associate Degree in Commerce
Accounting & Finance Specialization
Name: Muhammad Siddique.
Roll#: BN422748 .
Registration #: 17-NMD-00458
Contact#: +92343-9135299 .
Department of Commerce
ALLAMA IQBAL OPEN UNIVERSITY ISLAMABAD
Department of Commerce, Block13, Allama Iqbal Open University H-8, Islamabad
[Session 2017-2021]

4. IN THE NAME OF ALLAH, THE MOST MERCIFUL, THE
MOST BENEFICIAL.

5. - 1 -
DECLARATION
I, Muhammad Siddique student of A.I.O.U. Roll# BN422748 final semester of ADC, hereby
confirm that the Internship report I have provided is my own efforts. I did not copy my report
particularly or completely from any other student or from any other source either against
payment or free and I did not provide any plagiarized material in any section of my report.
I further confirm that the documents (Internship completion certificate & evaluation form) that
I have provided are genuine (i.e., not forged/fake) and have been issued by the authorized
person in the organization. If I am found guilty of mistaking, misleading, or concealing the fact
about my activities (either academic or non-academic but relevant to this course) at any stage,
the university is authorized to take disciplinary action against me according to university
policies and regulations.
I hereby also confirm that I have carefully read and understood all the guidelines, rules, and
regulations provided by the program coordinator.
This is the record of my original work under the guidance of the BANK OF PUNJAB
DARGAI Branch manager.
This report is never been submitted anywhere else for a reward of any degree or diploma.
Name: ----------------------
Signature of the student: ----------------------
Place: ----------------------
Date: ----------------------

6. - 2 -
COPY OF INTERNSHIP COMPLETION LETTER

7. - 3 -
DEDICATION
I dedicate this internship report to the individuals who have supported and inspired me
throughout my academic journey.
To my family, for their unwavering love, encouragement, and sacrifices. Your belief in me has
been the driving force behind my accomplishments, and I am eternally grateful for your
constant support.
To my advisor, for their guidance, expertise, and patience. Thank you for pushing me to explore
new ideas, challenging me to think critically, and providing invaluable feedback that has
shaped the outcome of this report.
To my friends and classmates, for their camaraderie, motivation, and shared experiences. Your
presence has made the long hours of research and study more enjoyable and fulfilling.
To the staff and faculty at AIOU, for creating an enriching academic environment that fosters
learning, growth, and intellectual curiosity.
Lastly, I dedicate this internship report to all the individuals who believe in the power of
knowledge and its ability to transform lives. May our collective efforts contribute towards a
brighter future and a better world.

8. - 4 -
ACKNOWLEDGEMENT
Praise be to Almighty Allah, the most merciful and magnificent and to his Holy Prophet
Muhammad (Peace be Upon him) who is forever a torch of guidance and knowledge for
humanity as a whole.
I would like to express my deepest appreciation and gratitude to the following individuals who
have contributed to the completion of this report:
My supervisor, for their invaluable guidance, expertise, and continuous support throughout this
report endeavor. Their insightful feedback, constructive criticism, and unwavering
commitment to excellence have been instrumental in shaping this report.
The faculty members of the AIOU, for their dedication to teaching and for imparting
knowledge that has laid the foundation for this report. Their passion for their respective fields
has been a constant source of inspiration. My family, for their unwavering love,
encouragement, and understanding. Their belief in my abilities and their sacrifices have been
the driving force behind my academic achievements. My friends and classmates, for their
companionship, encouragement, and the countless discussions that have broadened my
perspective and enriched my understanding of the subject matter.
The staff at the AIOU, for their assistance in locating and procuring the necessary research
materials. Their efficiency and willingness to help have been invaluable. The participants of
my study, for generously offering their time and sharing their insights. Without their
willingness to participate, this report would not have been possible. Lastly, I would like to
acknowledge the countless unnamed individuals whose contributions, directly or indirectly,
have influenced this report. Their work, publications, and research findings have provided a
solid foundation upon which this study is built.
I am deeply grateful for the support and encouragement provided by all those mentioned above.
Their contributions have significantly enriched this report, and I am honored to have had the
opportunity to work with such exceptional individuals.

9. - 5 -
PREFACE
The internship program grows the student’s potential and energetic activity to done the work
in better manner.
Student can learn more through internship program to enhance their working abilities to
compete the market, to assume responsibilities, cooperation, team work, and hallmarks of
modern management.
I got a chance to join the “The Bank of Punjab” to perform my internship. During the internship
program I learned about its functions, working and objectives and especially dealing with
subscriber which are useful tools for an organizational structure.
This report is structured to cover various aspects of the Bank of Punjab, starting with an
introduction that provides background information on the bank, its establishment, and its
mission. It also highlights the significance of studying this institution and the rationale behind
the chosen research objectives. The subsequent chapters delve into different areas of interest,
such as the bank's organizational structure, its range of products and services, risk management
practices, and its technological advancements. The analysis of financial statements and key
performance indicators is also incorporated to assess the bank's financial health and growth
trajectory.
However, during my internship I was to grasp the process, procedures, and basic functions of
the entire office working for the Pakistan professionals to raise the organizational structure.

10. - 6 -
LIST OF CONTENTS
DECLARATION____________________________________________________________- 1 -
COPY OF INTERNSHIP COMPLETION LETTER____________________________________- 2 -
DEDICATION _____________________________________________________________- 3 -
ACKNOWLEDGEMENT _____________________________________________________- 4 -
PREFACE ________________________________________________________________- 5 -
LIST OF CONTENTS ________________________________________________________- 6 -
EXECUTIVE SUMMARY _____________________________________________________- 9 -
INTRODUCTION TO BRANCH ______________________________________________ - 10 -
OBJECTIVES OF STUDYING THE ORGANIZATION_______________________________ - 10 -
WORK DONE BY ME: ____________________________________________________ - 10 -
HISTORY OF BANKING IN PAKISTAN ____________________________________________ I
BANKS IN PAKISTAN __________________________________________________________ I
Public sector commercial banks____________________________________________ i
Local private banks ______________________________________________________ i
Foreign Banks __________________________________________________________ii
Specialized Banks _______________________________________________________ii
THE BANK OF PUNJAB_________________________________________________________ II
Vision_________________________________________________________________ii
Mission _______________________________________________________________ii
Introduction ___________________________________________________________ii
Awards and achievements _____________________________________________ iii
Excellence Award by the Central Board of Revenue _________________________ iii
3rd Kissan Time Awards _______________________________________________ iii
Best Corporate Report Award __________________________________________ iii
16th Bolan Excellence Award ___________________________________________ iii
BRANCHES NETWORK ________________________________________________________ IV
ORGANIZATIONAL STRUCTURE _______________________________________________ V
INTRODUCTION _____________________________________________________________V
Comment on Organizational Structure _____________________________________ vi

11. - 7 -
Division of Labor _____________________________________________________ vi
Span of Control ______________________________________________________ vi
Communication ______________________________________________________ vi
PRODUCT LINES __________________________________________________________ VII
DEPOSIT DEPARTMENT _______________________________________________________ VII
NATURE OF DEPOSIT ________________________________________________________ VII
CURRENT DEPOSIT _________________________________________________________ VIII
SAVING DEPOSIT __________________________________________________________ VIII
SHORT NOTICE TERM DEPOSITS ________________________________________________ VIII
CALL DEPOSIT ____________________________________________________________ VIII
TERM DEPOSIT RECEIPTS_____________________________________________________ VIII
REMITTANCE DEPARTMENT ___________________________________________________ VIII
Types of Remittance ____________________________________________________ ix
Demand Draft (DD) ___________________________________________________ ix
Mail Transfer (MT) ___________________________________________________ ix
Telegraphic Transfer (TT) _______________________________________________x
Pay Order____________________________________________________________x
LIST OF PRODUCTS __________________________________________________________ XI
MAIN FEATURES OF EACH PRODUCT _______________________________________ xi
BOP MUNAFA-HI-MUNAFA – III _________________________________________ xi
BOP BAI MISAAL TERM DEPOSIT ________________________________________ xi
BOP PAHLAY MUNAFA DEPOSIT SCHEME:_________________________________ xi
BOP SENIOR CITIZEN TERM DEPOSIT SCHEME: _____________________________ xi
BOP KISSAN DOST TERM DEPOSIT SCHEME: _______________________________ xi
CORPORATE PREMIER TERM DEPOSIT: ___________________________________xii
BOP YOUNG LIONS SAVINGS ACCOUNT: __________________________________xii
WHO CAN INVEST ____________________________________________________xii
BOP SENIOR CITIZENS SAVING ACCOUNT _________________________________xii
BOP GHARAYLOO SAVING ACCOUNT_____________________________________xii
BOP ZIADA MUNAFA SAVING ACCOUNT __________________________________xii
BOP PLS SUPREME SAVING ACCOUNT ___________________________________ xiii

12. - 8 -
BOP TIJARAT ACCOUNT_______________________________________________ xiii
ACCOUNTS OPENING ______________________________________________________ XIV
PROCEDURE _____________________________________________________________ XIV
DEPOSIT SECTION__________________________________________________________ XIV
PROCEDURE OF WITHDRAWALS _________________________________________________ XV
PROCEDURE OF CROSS CHEQUES_________________________________________________ XV
PENSION SECTION __________________________________________________________ XV
2. CASH DEPARTMENT ______________________________________________________ XVI
PROCEDURE _____________________________________________________________ XVI
For deposit: __________________________________________________________ xvi
For withdrawals: ______________________________________________________ xvi
For pension receipt ____________________________________________________ xvi
CASH RECEIPTS PROCEDURE___________________________________________________ XVII
USE OF INFORMATION TECHNOLOGY IN DECISION MAKING_______________________________ XVII
ELECTRONIC BANKING SYSTEM_________________________________________________ XVII
BANK BRANCH OFFICE ______________________________________________________ XVII
ISSUES FACED BY THE BRANCH _________________________________________________XVIII
RECOMMENDATIONS______________________________________________________ XX
CONCLUSION ____________________________________________________________ XXI
BIBLIOGRAPHY __________________________________________________________ XXII
GENRAL ABBREVIATIONS__________________________________________________ XXIII
INCOME STATEMENT ABBREVIATIONS _______________________________________ XXIII

13. - 9 -
EXECUTIVE SUMMARY
The Bank of Punjab was established in 1989 under the Punjab Bank Act 1989. It is scheduled
bank governed by State Bank of Pakistan. Its head office is situated in Lahore. Presently, it has
more than 300 branches network all over the Pakistan, but it mainly concerned in Punjab
province. Bank of Punjab has equity of Pakistan Rupees 10.773 billion as on 31st December
2011. Its deposit based was Rs.237.897 billion with aggregate advances of Rs. 127.130 billion
as on 31st December 2011. Bank secured a profit of Rs. 348 million as on 31st December 2011.
During my stay at Bank of Punjab Dargai Branch KPK, I got the opportunity to work in various
departments in Bank including operation, credits, account opening, clearing and foreign trade.
In operation department and I noticed how banker's cheques are issued and paid. Similarly in
clearing department and I observed that how cheques are cleared and possible reasons of unpaid
of cheques and that account opening is a most crucial department in Banking. It referred as a
gate of entrance in the bank. The bank is advised to remain more vigilant by State Bank of
Pakistan while opening account in bank. The most important step is knowing your customer
and anti-money laundering in account opening. In credit department, I tried to understand all
the financing products.
I find that since the Bank of Punjab is considered a government bank and its main customer
comes from the public sector. I observed that customer service is not compatible with private
banks, but the Bank of Punjab is also applying modern techniques of information technology
and the online system is working properly compare to other banks. Software used by other
banks is of old nature which was applied in 2001, it required a great deal of up-gradation.
Finally Bank of Punjab should launch reforms for the improvements for customer service and
its operational system to remain competitive in banking sector.

14. - 10 -
INTRODUCTION TO BRANCH
The branch where I was appointed for my internship is located at Dargai Malakand Road KPK
Pakistan. This is a good opportunity for the branch to do business with such kinds of people
there is also a great competitive environment that is not easy to deal with it because all major
banks have branches in the same area.
During my internship, the branch has a large number of staff. It has more than 20 employees
ranking from branch manager to teller and other than these officers there are 8 employees
ranking from security guard to sweeper.
The main reason for a bank’s existence is to accept the deposits of people who have surplus
money and lend it to those who need it for their business.
MISSION
Our mission is to provide the services that enable people and businesses to extend themselves
so they can reach new heights, fulfill their ambitions and achieve the best that's on offer. We
are determined to be a truly customer-driven business with our customer knowledge and
perception. We are committed to providing customer satisfaction, evolving business integrity,
and forming pride in the people.
VISION
Our aim is to deliver more & contribute to the prosperity of Pakistan with the fortified pride in
who we are and the passion for innovation.
OBJECTIVES OF STUDYING THE ORGANIZATION
The primary purpose of this study is to fulfillment of the requirements for the degree of MBA
(Banking & Finance). For this connection each student of this particular course is required to
undertake training (internship) in a relevant organization selected by them, for a period of 6-8
weeks.
WORK DONE BY ME:
1st Week of Internship Organizational structure
2nd Week of Internship Account Opening
3rd Week of Internship Remittance and Clearing
4th Week of Internship product lines and Issuance of Cheque Book
5th Week of Internship Cash Department
6th Week of Internship Lockers and Utility Bills

15. i
Chapter 1
HISTORY OF BANKING IN PAKISTAN
Pakistan came into being on 14th August, 1947; sufficient banking services were available in
the areas forming Pakistan. Out of the total branches of the nearly 3,500 in the undivided India,
as many as about 1,500 branches were existing in these areas.
It was agreed between the two countries that reserve bank of India shall continue to function
in the Pakistan territory until 30th September 1948 and that Indian notes would continue to be
legal tender at Pakistan until 30th September 1948. Unfortunately, relationship between the
two countries became most strained immediately after independence; banking was mostly in
the lands of Hindus who immediately started transferring their offices and assets into India. As
a result, most of the banks in Pakistan were closed down and even those which were open were
not doing any effective business.
The number of banking office in Pakistan came down to about 200 on 30th June 1948. Branches
of some European banks were also functioning in a limited manner, financing in export of
crops, and their number was limited to about 20.
It was only the Habib bank, which transferred its office from Bombay to Karachi Austral Asia
bank was another bank, which was in existence in the Pakistan territory at the time of
independence. Despite of best efforts on the part of government of Pakistan, no heady way
could be made on this behalf and reserve bank of India was in no mood to help the new country.
Imperial bank of India, agent of the reserve bank of India also started closing down its branches
in Pakistan.
Banks in Pakistan
Public sector commercial banks
• National bank of Pakistan
• First women bank limited
• The bank of Khyber
• The bank of Punjab
Local private banks
• Askari Commercial Bank Limited
• Bank Al-Falah Limited
• Bank Al Habib Limited
• Meezan Bank Limited
• Faysal Bank Limited
• Silk Bank Limited

16. ii
• Soneri Bank Limited
• Union Bank Limited
• Muslim Commercial Bank Limited
• Allied bank of Pakistan
• Union bank limited
Foreign Banks
• ABN Amro Bank
• CITI Bank
• Habib Bank A. G. Zurich
• Mashreq Bank PJSC
• Oman Bank
• Barclays Bank
• Standard Chartered Bank
Specialized Banks
• Zari Tarqiati Bank Ltd.
• Industrial Development Bank of Pakistan
• Punjab Provincial Cooperative Bank limited
The Bank of Punjab
Vision
“To be a customer focused bank with service excellence.”
Mission
“To exceed the expectations of our stakeholders by leveraging our relationship with the
Government of Punjab and delivering a complete range of professional solutions with a focus
on programmed driven products & services in the Agriculture and Middle Tier Markets through
a motivated team”
Introduction
Established in 1989, in pursuance of The Bank of Punjab Act 1989 and was given the status of
scheduled bank in 1994. The Bank of Punjab is working as a scheduled commercial bank with
its network of 273 branches at all major business centers in the country. The Bank provides all
types of banking services such as Deposit in Local Currency, Client Deposit in Foreign
Currency, Remittances, and Advances to Business, Trade, Industry and Agriculture A wholly
owned subsidiary of BOP First Punjab Modaraba (FPM) was established in 1992 and is being
managed by Punjab Modaraba Services (Pvt) Ltd. Lending under Islamic mode of finance,

17. iii
main vehicles are Morabaha, Ijarah & Musharika to encompass requirements of corporate,
commercial and individual customers.
Liability generation through COM’s (Certificate of Musharika) offers attractive returns to
individuals and institutional depositors for fixed tenure instruments. FPM is working to
introduce new and innovative products to enhance its range of services.
The Bank of Punjab. BOP which is also known as the Bank of Punjab this is the best bank
regarding the customer point of view. The Bank of Punjab (BOP) is only the bank that’s
modifies its products and services regarding the Customers of The Bank of Punjab (BOP).
Customer is always true and your totally business is depended upon the Customer. Customer
is satisfied you can imagine that Business is growing. The Bank of Punjab (BOP) works for to
exceed the expectations of our stakeholders by leveraging our relationship with the
Government of Punjab and delivering a complete range of professional solutions with a focus
on programme driven products & services in the Agriculture and Middle Tier Markets through
a motivated team.
Awards and achievements
The bank of Punjab is performing excellently in the banking sector and also playing a vital role
in the economy for which it has be awarded with many awards. Some of them are as follow:
Excellence Award by the Central Board of Revenue
The Central Board of Revenue presented "Excellence Award" to the Bank of Punjab in
recognition of the contribution made by the bank towards Government exchequer.
3rd Kissan Time Awards
In recognition of Bank's contribution in development and growth of agricultural sector, the
Bank honored with "Top Bank for Agriculture Loans" and "Best Bank Crop Insurance" under
3rd Kissan Time Awards year 2006.
Best Corporate Report Award
Annual Report of the Bank for the year 2005 won 5th position for "The Best Corporate Report
Award" for the financial sector, adjudicated jointly by the Institute of Chartered Accountants
of Pakistan and the Institute of Cost and Management Accountants of Pakistan.
16th Bolan Excellence Award
The Bank was awarded Best Bank Award under 15th Bolan Excellence Awards distributed in
2006.

18. iv
Branches network
1.1. Regional network of branches
Regional network of branches
• Lahore Central-I Region • Multan Region
• Lahore Central-II Region • Faisalabad Region
• Lahore North Region • Gujranwala Region
• Lahore South Region • Gujrat Region
• Peshawar Region • Bahawalpur Region
• Islamabad Region • D.G. Khan Region
• Rawalpindi Region • Jhelum Region
• Sialkot Region • Sheikhupura Region
• Bahawalnagar Region • Sahiwal Region
• Jhang Region • Khushab Region
• Karachi Region

19. v
Chapter 2
ORGANIZATIONAL STRUCTURE
An organizational structure is a system that outlines how certain activities are directed in order
to achieve the goals of an organization. These activities can include rules, roles, and
responsibilities.
Introduction
In the 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”
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.
Chairperson Of Board Of Governor
President Of Bop
Finance
Division
Risk
Management
International
Division
HR
Division
IT
Division
Retial_Banking
Division
Report
To
State Bank
Of Pakistan
Special Assets Management Division
Commercial
Assets
Management
International
Division
Credit
Administration
Division
RCAD
Department
Hub

20. vi
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. 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.
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 Structure
Division 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.

21. vii
Chapter 3
PRODUCT LINES
The most precise definition of product is anything capable of satisfying needs, including
tangible items, services and ideas. In marketing, a product is anything that can be offered to a
market that might satisfy a want or need. Since 1575, the word "product" has referred to
anything produced. Since 1695, the word has referred to "thing or things produced”. The
economic or commercial meaning of product was first used by political economist Adam
Smith. In general usage, product may refer to a single item or unit, a group of equivalent
products, a grouping of goods or services, or an industrial classification for the goods or
services. The consumer banking products include personal accounts, credit cards, loans,
investment products, treasury products and many more. The National Bank of Pakistan offering
for sale several related products individually, which is commonly known as product lining. A
product line is defined as “A group of products that are closely related because they function
in a similar manner, are sold to the same customer groups, are marketed through same types of
outlets, or fall within the given price ranges”. The followings are the main consumer banking
products of BOP.
Deposit department
In modern times very few business enterprises are carried out solely with the capital of the
owners. Borrowing funds from different sources has becomes an essential feature of today
business enterprise. But in the case of a entire banking system is based on it. The borrowed
capital of the bank is much greater than their own capital. Banks borrowing is mostly in the
form of deposits.
These deposits are lent out to different parties. The larger the difference between the rate at
which the deposits are borrowed and the rate at which they is lent out the greater of the profit
margin of the bank. Furthermore, the larger the deposit the larger will be the funds available
for employment; larger the funds lent out the greater will be the profit of the bank.
To receive the deposit is the basic function of all commercial banks. The bank does not receive
these deposits for safe keeping purpose only, but they accept deposits as debts. When banks
receive deposit from a customer, the relationship of a debtor and creditor is established where
by the customer become the creditor and the bank a debtor. When the bank receives amount of
deposit as a debtor, it becomes the owner of it. It may, therefore use it as deems appropriate.
But there is an implicit agreement that the amount owned would be paid back by the bank to
the depositor after a specified period.
Nature of Deposit
Current or demand Deposits
Saving Deposit
Short Notice Term Deposit
Call Deposits
Fixed or Term Deposits

22. viii
Current Deposit
Current deposit is those which are payable to bank whenever demand by the customer. Bank
doesn’t pay any profit on current deposits. There are of different scheme of saving deposits,
which are classified under different duration purpose and rate of interest. Fixed deposits are
those which are by the bank under the conditions that will not be payable on demand but will
be payable under fixed or determinate future time date.
Saving Deposit
This type of accounts is one step towards the Islamization of banking system in Pakistan.
There are two types of PLS Accounts.
1. PLS Saving Account
2. PLS-TDR (Profit & Loss Sharing Term Deposit Receipts).
PLS saving accounts can be opened with the minimum sum of Rs. 100 and PLS-TDR account
can be opened for a sum of Rs. 1000 or above. Profit is paid on both types of the PLS account
on half yearly basis. Under PLS saving account the depositor undertakes to share profit or loss
on the deposits earned or sustained by the bank. Secondly the bank is at the liberty to invest
the funds of the deposits in any avenue, it deems fit. The PLS deposits are invested in non-
interested channels.
Short Notice Term Deposits
This kind of deposit is for a short period. The depositor may withdraw his deposit at any time
by giving seven days’ notice to the bank. This type of deposit facilitates the depositor to
withdrawn his amount with interest of the deposited period.
Call Deposit
Call deposits are the sorts of deposits, which are deposited with the banker against any tender.
This is without interest deposit. This may be with interest provided the depositor has agreed to
keep this amount with the bank for some fixed period.
Term Deposit Receipts
This type of deposit is same as the SNTD. The difference is that SNTD is for short period (7-
30 days) while TDR is for long period (1 month up to 5 years).
Remittance department
Remittance is a major function of the bank. It is the transfer of money from one place to another
place. The need for remittance is commonly felt in commercial life particularly and in everyday
life generally. By proving this service to the customers, the Bank of Punjab earns a lot of
income in the form of service charges.

23. ix
Types of Remittance
The Bank of Punjab deals with the following type of remittances:
• Demand Draft (DD)
• Mail Transfer (MT)
• Telegraphic Transfer (TT)
• Pay Order
Demand Draft (DD)
Drafts drawn by one branch on another branch or on the Head Office of same bank or vice
versa, are not cheques or bills, as these have no distinct drawer and drawee. Section 85-A.
“Where any draft, that is, an order to pay money, drawn by one office of bank upon another
office of the same bank for a sum of money payable to order on demand, purports to be issued
by or on behalf of the payee, the bank is discharged by payment in due course”. Banker’s drafts
payable to order on demand are within the protection of Sections 10 and 131-A of the
Negotiable Instruments Act. However, if a demand draft drawn on a bank by its own branch
bears a forged endorsement, the person in possession of it cannot compel that bank to pay it.
As far as possible the banker’s draft should be crossed and it should never be drawn payable to
bearer. When a person requires a draft, he should be asked to complete the prescribed
application form in which he should state the amount of the draft, the name of the payee, and
the place of payment.
This application form should be signed by the purchaser or by those persons who have been
duly authorized to act on his behalf. When a customer requests his banker to provide him with
a banker’s draft, the amount of which is to be debited to his account, he should enclose with
his written request a cheque covering the amount of the required draft and other charges etc.
payable to banker. The Bank of Punjab provides demand drafts at very reasonable rates with
safety, speedy and reliable way to transfer money. Any person whether an account holder of
the bank or not, can purchase a Demand Draft form a bank
Mail Transfer (MT)
A Mail Transfer is a form of remittance in which the amount remitted by a customer or a
noncustomer is directly credited to the account of the beneficiary with another branch. Move
your money safely and quickly using BOP Mail Transfer service. And BOP also offer the most
competitive rates in the market. They charge Rs 50/- exchange rate and RS 75/- postage charges
on issuing mail transfer. When the money is not required immediately, the remittances can also
be made by mail transfer (MT). Here the selling office of the bank sends instructions in writing
by mail to the paying bank for the payment of a specified amount of money. Debiting to the
buyer’s account at the selling office and crediting to the recipient’s account at the paying bank
make the payment under this transfer. BOP taxes mail charges from the applicant where no

24. x
excise duty is charged. Postage charges on mail transfer are actual minimum Rs. 40/- if sent by
registered post locally Rs.40/- if sent by registered post inland on party’s request
Telegraphic Transfer (TT)
Telegraphic Transfer is a form of remittance, which is advised by telegram, telex or fax
machines. The fundamental principles of such transfer are otherwise identical with the Mail
Transfer. It is the message, which is sent from one branch to another on the order of payer to
payee through wire. It is one of the quickest means to transfer fund through the use of
telex/fax/internet or cable. Payment to the beneficiary is affected directly by the drawee office
upon identification or through credit into beneficiary’s bank account. As such remitting office
is not required to issue any instrument payment to the remitter for delivery to the beneficiary.
Pay Order
NBP provides another reason to transfer your money using our facilities. UBL pay orders are
a secure and easy way to move your money from one place to another. And, as usual, UBL
charges for this service are extremely competitive. The charges of UBL are very low all over
the Pakistan. It charges Rs 50/- for UBL account holders on issuing one payment order, and
charges Rs 100/- for NBP non-account holders on issuing one payment order. It charges Rs
25/- for students on payment of fees of educational institutions. If someone want a duplicate of
payment order they charges Rs 100/- for UBL account holders and Rs 150/- for non-account
holders.
No SCHEME/PRODUCT TENURE
01 BOP MUNAFA-HI-MUNAFA – III. PLS – TERM DEPOSIT
02 BOP BAI MISAAL TERM DEPOSIT PLS – TERM DEPOSIT
03 BOP PAHLAY MUNAFA DEPOSIT SCHEME PLS – TERM DEPOSIT
04 BOP SENIOR CITIZEN TERM DEPOSIT PLS – TERM DEPOSIT
05 BOP KISSAN DOST TERM DEPOSIT PLS – TERM DEPOSIT
06 CORPORATE PREMIER TERM ACCOUNT PLS – TERM DEPOSIT
07 BOP YOUNG LIONS SAVINGS ACCOUNT PLS – Running Account
08 BOP SENIOR CITIZENS SAVING ACCOUNT. PLS SB – Running Account
09 BOP GHARAYLOO SAVING ACCOUNT. PLS SB – Running Account
10 BOP ZIADA MUNAFA SAVING ACCOUNT. PLS SB – Running Account
11 BOP PLS SUPREME SAVING ACCOUNT. PLS SB – Running Account
12 BOP FCY SUPREME CURRENT & SAVING
ACCOUNT. US$, EURO & U.K. Pound
PLS FCY – Running Account
13 CORPORATE PREMIER ACCOUNT PLS– Running Account
14 BOP TIJARAT ACCOUNT. CD – Running Account

25. xi
List of products
MAIN FEATURES OF EACH PRODUCT
BOP MUNAFA-HI-MUNAFA – III
This is a term deposit product. The term is from 1 month to 2 years and the profit is paid on
monthly basis. The minimum amount of deposit is Rs.100, 000/-. The rate of profit is from 7.0
% p.a. to 11.35 % p.a. depending on the tenure which is higher than Bank’s normal term
deposits.
BOP BAI MISAAL TERM DEPOSIT
This is a term deposit product. The term is from 1 year to 2 years and the profit is paid on
maturity. The minimum amount of deposit is Rs.100, 000/-.
BOP PAHLAY MUNAFA DEPOSIT SCHEME:
This is a Fixed Deposit product allied with state-of-the-art BOP modern banking facilities with
high rate of provisional profit paid in advance. The tenure will be 3, 6, 12, 15 and 18 months
with free ATM/Debit Card.
BOP SENIOR CITIZEN TERM DEPOSIT SCHEME:
This is a Fixed Deposit product with high rate of profit paid on monthly basis with a fixed tenor
of one year only. The product is available for senior citizens of age 55 years & above who are
eligible to invest in term deposit as per Bank’s criteria.
The account can be opened singly or preferably jointly (husband & wife) provided either of
them is of 55 years or above (Retirement is not a condition of eligibility)
BOP KISSAN DOST TERM DEPOSIT SCHEME:
This is a Fixed Deposit product with high rate of profit paid on maturity along with principal
amount with a fixed tenor of six months & one year.

26. xii
CORPORATE PREMIER TERM DEPOSIT:
BOP YOUNG LIONS SAVINGS ACCOUNT:
The product is available for all children less than the age of 18 years to open PLS Minor saving
account (checking/running) with their Parent/Guardian as per our Bank’s criteria. The account
will be opened with Parent/Guardian i.e., Child (M)/Guardian (G).
The product carries all characteristics/conditions/rules pertaining to PLS SB account except
profit will be calculated on daily product basis and payment of profit shall be paid on monthly
basis.
WHO CAN INVEST
Children (less than the age of 18 years) would be eligible to open a Minor Bank Account with
their Parent/Guardian. This is a Saving Account product with a slightly better profit rate with
other value-added benefits. The rules of operations will apply as specified in BOP Instructions
Circular No. 93/68 dated Dec 16, 1993.
BOP SENIOR CITIZENS SAVING ACCOUNT
This is a saving bank product available for all senior citizens i.e. persons of 60 years and above
who are eligible to open a saving account as per our Bank’s criteria.
BOP GHARAYLOO SAVING ACCOUNT
This is a saving bank product available for all females who are eligible to open a saving account
as per our Bank’s criteria. The account can be opened singly or jointly with husband. This
product is designed to attract procure deposit/savings of ladies particularly housewives of
expatriates & students.
BOP ZIADA MUNAFA SAVING ACCOUNT
This is a saving bank product available for general public i.e. persons who are eligible to open
a saving account as per our Bank’s criteria. The account can be opened singly or jointly. This
product is designed to attract procure deposit/savings of general public particularly salaried and
small investors.

27. xiii
BOP PLS SUPREME SAVING ACCOUNT
This is a saving account product available for all customers who are eligible to open a PLS SB
account as per our Bank’s criteria.
BOP TIJARAT ACCOUNT
This is a current account product available for all customers who are eligible to open a current
account as per our Bank’s criteria.

28. xiv
Chapter 4
ACCOUNTS OPENING
In 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 open 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.
Account opening is the first step to establish a professional relationship between the customer
and the bank. The Bank of Punjab is offering mainly two types of accounts:
• Current Deposit Account
• Profit & Loss Sharing Account
The first condition for a customer, who wants to open an account with the bank of Punjab, is
introduction, which is preferably by the bank officers or any account holder of the bank. The
different categories of accounts that are available are as under.
• Individual account
• Joint Account
• Partnership Account
• Limited Company Account
• Clubs, Society, Association, or Trust Account
• Foreign Currency Deposit
Procedure
• Customer fills A/C opening form prescribed by the bank.
• Then he submits the I.D card copy and other related documents
• Specimen signature card is filled
• 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 sent to customer.
• When letter is sent back to bank by customer then bank issue cheque book to
customer.
Deposit Section
All 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.
Niaz Ali Shaha with his colleague Mr. Salman khan has been performing the activities of this
section.
The main function of this department is.

29. xv
• 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/bearer cheques.
• Local clearing.
• Preparation of accounts holder activity report.
Procedure of Withdrawals
There 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 cheques
Whenever 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 Section
Mr. Akbar Ali is the head of pension department. The following activities are performed by
her;
• Maintenance of Pension Register
• Scrolling of Pensions Paid
• Aerials in case of any increase announced by government
• Maintenance of the Inward Mail Register

30. xvi
During my internship, I learnt how to handle with new pensioner’s 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 Department
i.
Cash Payment
Payments are the function that they pay their cheques and
pay cash.
Cash Receipts
This section deals with;
Receipts mean collection of utilities bills, taxes etc.
Cash Payment Procedure
In this branch of BOP, this section deals with the
• withdrawals of the cheques
• deposit of amount
• pension receipt
Procedure
For 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:
For pension receipt
After the approval of the pension officer the pensioner comes in this section for receiving
cash amount of pension.

31. xvii
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 making
Today 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 customer’s 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 System
EBS is used for any kind of transaction within the bank. i.e., Receipts and payments, Bills
Collection, Tax receipts, etc.
Bank Branch Office
BBO 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, customer’s 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.

32. xviii
Issues faced by the branch
I 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 customers 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:

33. xix
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:
The 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, bank’s communication system was not doing well

34. xx
RECOMMENDATIONS
As 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
customer’s requirements, understanding employee’s need, modern technology, to
making social responsibility and looking towards stakeholder’s 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 customer’s 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 consider 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 criterion.
• Promotions made conditional with qualifications.

35. xxi
CONCLUSION
The report is all about the Bank of Punjab, one of the leading banks in Pakistan's banking
industry with 284 nationwide and almost 18 branches operating in other countries. It has
maximum coverage with facilities for 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 a 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 that exist in almost every
branch. It is offering different deposit choices, advances, credits, securities, etc for its
customers.
The 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 been that it is acting as an Agent of the State
Bank of Pakistan, providing Agency arrangements for different government organizations
including WAPDA and PIA, Profitability and vide coverage throughout Pakistan through its
Corporate Branches, and also has comprehensive range of products it is offering in the market.
The challenge it is facing is 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 banks as others are using. There are many
workers and employee unions exist in the National Bank of Pakistan that use to play
organizational politics instead of doing productive work that leads to wastage of time.
As the analysis shows that BOP is a growing organization with the highest return on capital,
the largest market share amongst all Pakistani banks, and the cost-to-income ratio is the highest
in the banking sector. But there is a further need for improvement to overcome weaknesses and
to maintain its position.
As far as my internship and experience are concerned, I learned a lot during my internship. I
learn a lot about banking practices in Pakistan, rules and regulations and different procedures
followed by banks, and the organizational culture, and structure of the bank, Bank of The
Punjab.

36. xxii
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/managinghr/managingsuccessfully/performance-
management
• Annual report of the Bank of Punjab 2012 Staff of the bank of Punjab Dargai branch

37. xxiii
GENRAL ABBREVIATIONS
ACCG/ACCT Accounting
ADT Auditing
BUS/BSN Business
CAP Capital
CF Cash Flow
CFO Chief Financial Officer
COO Chief Operating Officer
CPA Certified Public Accountant
CR Credit
CUR Current
CURR Currency
DR Debit
GAAS General Accepted Accounting Standards
GL General Ledger
K $1000
ROI Return on Investment
VC Venture Capital
INCOME STATEMENT ABBREVIATIONS
C+MV Cost Plus Market Value
C/S Cost Sharing
COGS Cost of Goods Sold
COS Cost of Sales/Services
CPU Cost per Unit
EBITDA Earnings Before Interest, Taxes, Depreciation, and Amortization
EX/EXP Expense
F&A Facilities and Administrative Costs
FD Fund
FE Fixed Expenses
GP Gross Profit
GM Gross Margin
LLC Limited Liability Company
NI Net Income
OE Operation Expenses
P&L Profit and Loss Statement
PAT Profit after Tax
VE Variable Expenses