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1. CASE STUDY ON
CRM IMPLEMENTATION
IN
THE BANK OF PUNJAB
By: AHMAD MEHMOOD

2. INTRODUCTION:
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, for long periods of time that the gap in savings and investment and trade deficit has
posed a serious threat to target levels of growth-related ailments budget deficit and public debt,
both external and internal add up. Interestingly, although growth in such adverse circumstances
in the real sector during the previous year showed a favorable exchange, which speaks of hidden
potential and strength of the economy.BOP is essentially a financial organization. The bank is
concerned about the commercial banking and related services in Pakistan and abroad. The nature
of the operations of the bank is different and unique from other banks / financial institutions
working in Pakistan. Balance of payments is the largest commercial bank in Pakistan. After
redefining its role has become a modern commercial bank rather than a public sector
organization. Bank services are accessible to people, the government and the business sector. It
also deals with treasury operations of the Government of Pakistan as an agent for the State Bank
of Pakistan (SBP in places where no presence). It has a diversified business portfolio and is now
a front-end player in the market for debt securities, agricultural finance, corporate investment
banking, retail and consumer banking, treasury services and are taking a growing interest in
development of small and medium businesses. It is also fulfilling its social responsibilities as a
corporate citizen.BOP is a Governmental Organization. It implements the policies of State Bank
of Pakistan as it is the agent of SBP. It deals all Government Revenue, collection and payments
of salaries, pensions and also payments related to the Government Treasury. The bank also
provides services as trustee to National Investment Trust (NIT) and Long-Term Credit Fund
(LTCF).
HISTORY OF THE BANK OF PUNJAB:
1989: The bank was established pursuant to The Bank of Punjab Act 1989.
1992: First Punjab Modaraba (FPM), a wholly owned subsidiary of the bank, was established
and is being managed by Punjab Modaraba Services (Pvt) Ltd.

3. 1994: was given the status of a retail bank.
2003: BOP introduced e-banking.
2005: Annual report for the year 2005 won the 5th
position for the “best corporate report award”
2006: Bank honored with “top bank for agriculture loans”.
2007: Bank started providing ATM facility
2013: BOP open first Islamic banking branch in Lahore
SHARE OF THE MARKET PATTERN:
SR
no.
Sector Deposit %age Advances %age
1 Public investment 33.77% 5.42%
2 Private investment 66.23% 94.58%
TOTAL 100% 100%
RETAIL ORIENTATION OF BOP:
There are 334 branches of BOP all over the province ( Punjab) and other of them 7 branches are
of Islamic banking. Bank offers current deposit , saving deposit and term deposit.
Current deposit:
1.Bop Tijarat Account: This is a chequing account deposit product especially designed to
cater the needs of business Individuals as well as Business entities including Partnerships,
Limited / Unlimited Companies, Not for Profit organizations, Trusts and any other
business oriented government / Semi government entity. This is a Non profit bearing
account with many value added features on maintaining monthly average balance of
Rs.25,000/- and over
2.Bop Life Current Account:This is a current chequing account deposit product available
for individuals with a Free of Cost Life Insurance Cover.This is a Non profit bearing
account with value added features on maintaining monthly minimum average balance of
Rs.5,000/-
3.Bop salary plus account: This is a current chequing account product which can be opened
by any salaried individual who is working for an organization that is maintaining its

4. salary disbursement account with BOP.The main focus is on employees of govt/semi
govt organizations, their allied corporations, autonomous bodies and private sector
entities.This is a Non profit bearing account
Saving deposit:
This is a profit bearing chequing account product. The deposit product is available for all types
of general public, govt/semi govt organizations, companies, business entities etc who are eligible
to open account as per bank’s criteria.
1. BOP Gharayloo Saving Account: This is a PLS Saving Bank deposit product available
for all females who are eligible to open a saving account as per Bank’s criteria. The
account can be opened singly or jointly with husband. A customer can open only one
BOP Gharayloo Saving Account singly or jointly with husband regardless of the branch.
2. BOP Ziada Munafa Saving Account: This is a PLS Saving Bank deposit product
available for all types of general customers who are eligible to open account as per
bank’s criteria. The account can be opened singly or jointly. This product is designed to
attract general public particularly salaried and small investors.
3. BOP Behtareen Munafa Account:This is a PLS Saving Bank deposit product for general
public, govt/semi govt organizations, companies, business entities etc who are eligible to
open account as per bank’s criteria.
4. BOP Senior Citizen Saving Account: This is a PLS Saving Bank deposit product
available for all Senior Citizens i.e. persons of 55 years and above who are eligible to
open a saving account as per Bank’s criteria. The account can be opened singly or jointly
(husband & wife) provided either of them is of 55 years or above.
5. 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.
Numerous services/incentives are offered. These are applicable on last month average
balance maintained by the customer.
Term deposit:
1. BOP Pahlay Munafa Scheme: This is a PLS Saving Bank deposit product and is available
for all types of customers who are entitled to open bank account.This is a Fixed Deposit
scheme. Minimum amount of investment is Rs.50, 000/-
2. BOP Kissan Dost Term Deposit: This is a PLS Saving Bank deposit product designed to
encourage saving habits in farmers especially during the wheat and cash crop seasons for
short term. All the farmers are eligible to invest in Kissan Dost scheme who are eligible
to open saving account as per bank’s criteria. The term account can be opened singly or
jointly.

5. 3. BOP Bai Misaal Term Deposit:This is a PLS Saving Bank deposit product available for
general customers who are eligible to invest as per bank’s criteria. The term account can
be opened singly or jointly.This is a Fixed Deposit scheme. Minimum amount of
investment is Rs.100,000/-. No limit for maximum amount.
Retail finance:
 Bop offers:
 Car Lease-CarGar
 Apna Ghar House Financing
 Advance Salary Personal Loan
 Motorcycle Lease Scheme
 Carvaan Fleet Financing
 BOP Solar
 Payment Services Group
Banking beyond the ordinary:
BOP provide a wide range of products and services to corporate & commercial clients and
financial institutions, including domestic and cross-border payments, receivable management,
professional risk mitigation for international trade and the provision of agency, depositary and
related services. Transaction Banking is not just about moving cash, it's about the security
requirements that come with it. It's about the assurance that the processes are as streamlined as
possible.
Transaction Banking constitute of following functions:
 Financial Institutions
 Cash Management
 Trade Services
 Home Remittance
Agriculture loans:
Our countrywide network of branches, that too predominantly at Tehsil level/remote rural locales
and environs, affords us advantageous flexibility, outreach and demographic coverage to access
and serve the Agrarians at their convenience on their doorsteps. Our staff includes over 125
professionally qualified and well trained Agriculture Credit Officers, fully conversant with latest
farming procedures and practices and well versed in customs, norms, social ethos and aspirations
of our tillers.
We posess the scientific wherewithal to encourage farmers to invest in state of the art equipment,
tools and implements etc. in the Dairy sector, especially in the wake of ever rising demand for

6. Dairy Products. We have also recently launched Livestock Development initiatives, while our
scheme for Fish Farming too has gained great popularity and success.
BOP ISLAMIC BANKING:
During the year 2013, the Bank of Punjab entered into a new era by setting up Islamic Banking
Operations. Recognizing the potential market of Islamic banking, Bank has opened 7 Islamic
Banking branches offering a range of Shariah Compliant products and services to the valued
customers. Although Islamic Banking Operations are quite new in BOP, however, substantial
growth has been made in short period of time. Besides offering deposits products with lucrative
returns, the Bank The Bank has also taken initiatives under Alternate Delivery Channel (ADC) to
provide different services to its valuable clients.
The Bank has successfully introduced following services:
 Current Account
 PLS Saving Account
 Riba Free Certificates (RFCs)
 Loss Sharing
CRM PRACTICES:
CRM in BOP essentially focus on providing optimal value to customers through the way how it
communicates with them, how to sells to them, and how it services them as well as through the
traditional means of product, price, promotion, and place of distribution. The bank recognizes
that costumers make buying decisions based more on their overarching experience that includes
product, price, service recognition and support than just price and product. The bank believes
that if it can get all those factors right consistently, it will be rewarded with ongoing customer
loyalty and value.
In BOP, CRM is hugely technology driven. The bank philosophy behind CRM is massive use of
technology .The technology might push costumers away from the branch and get most of the
requirements fulfilled through machines outside the branch. It believes that this effort to bring
costumers least to the branch might help in reducing factor of costumer ignorance, poor
employee behavior, inadequate parking and so on.CRM at BOP is viewed as a discipline as well
as a set of discrete software technologies which focus on automating and improving the business
processes associated with managing relationships in the areas of sales, marketing, customer
service and support. The organization aims to achieve the end goal of one to one marketing.
The CRM software applications are not only intended to facilitate the coordination of multiple
business functions but also supposed to coordinate multiple channels of communications with

7. costumers face to face call centers, ATM, web, telephone, kiosk, bank, branch, sales, associates,
etc so as to enable the bank to carry out cradle to grave costumer management more efficiently.
It should allow the bank to engage in one to one marketing by tracking complete costumer life
cycle.
Technological initiatives for CRM:
Autosoft software:
To accomplish the above objectives through specific software, BOP has rolled out customer
relationship management software, Autosoft. The costumer touches the bank from a number of
channels, namely, call centre, bank branch, BOP centers, ATM, web and SMS. Autosoft provide
a common platform so as to have an integrated single view of the end costumer across product
lines and channels. To begin with, it will automate process flow tracking in the product sales
process, and enable to generate customized reports and promote cross selling. It will help in
efficient campaign management by providing a software interface for definition, tracking,
execution and analysis of campaigns. Similarly, even the costumer’s service and support function
also has well-defined processes depending on the nature and the type of query and complaints.
Autosoft primarily addresses the following points:
1. Complaint and query management: Autosoft addresses complaints in a systematic
manner. Any case requiring the authorization of an officer automatically goes to the
officer’s mail box and moves forward only after his approval. Service requests and
complaints can b routed to the respective departments this turn out to be effective control
and redressed of complaints.
2. Customer retention: The software enables the branch head to know exactly when and
which account is showing any abrupt behavior. He/she then know its reason and
ultimately check his or her detachment from the bank.
3. Cross-selling and up-selling: the software can be used for cross selling and up selling
purposes. If a costumer intends to purchase a property or car, the sales team may even
peruse for their own home or auto loans.
4. Customer contact management: Autosoft enables the bank to record complete profile,
and contact history of its customers. It also helps in greeting costumers at various
occasions such as birthdays, wedding days, and insurance premium submission date.
These help the bank in inducing personal touch with customers.
5. Sales force automation: Autosoft endeavors to track all banking accounts related
opportunities from the point a prospect expresses interest in the product till the sale
process gets logically closed. It even calculates incentive compensation for the outbound
sales team.
Call Centre:

8. To facilitate CRM, the bank has an effective call center to support. so, for most of the
banking requirements and for almost all types of customer complaints, costumers are only
required to call to the call centers of the bank and the rest is bank’s job.
Automated Teller Machines:
In order to provide 24/7 banking services to the customers, ATMs network has been
increased to 166. The Bank continues to improve and secure its IT related technologies. All
branches of the Bank are linked with online connectivity. Besides offering withdrawal
facility through 166 ATM network, Inter Bank Fund Transfer Facility has been made
available. During the year, Bank has also successfully launched Debit MasterCard product
with features of Point of Sale Transactions (POS) and withdrawal through local and
international ATMs.
BOP Phone Banking:
In order to leverage technology, the bank wants to provide the most superior service. Phone
banking is part of that strategy. Through phone banking
 Customer can receive information on numerous BOP products and services.
 They may activate and block BOP debit master card.
 Check account balance, transaction history and transfer funds.
 Instruct the issuance of BOP debit Master card, cheque book, pay orders, demand drafts
and other requests.
 Request e-statement for multiple accounts.
 Register their comments, suggestions and complaints.
Offer Customization:
Some personalized services which are offered by BOP to its customers are
 Dedicated officer at the bank
 Separate interaction area in the branch
 Anywhere banking facility
Competitive Pricing:
 Reduced rates for products and services
 Complimentary offers
 Value linked benefits
Offers:
The Bank of Punjab has recently launched Debit Card powered by MasterCard that offers its
customers a wide range of lifestyle benefits ranging from worldwide acceptance and an

9. extremely safe and secure system. This cash alternative from BOP for everyday transactions
further enriches their shopping experience.
Basic Banking Accounts:
 This is a Nonprofit bearing chequing account product
 The deposit product is available especially for customers like students, mustehkeen-e-
zakat, salary accounts of government and semi government employees, pensioners,
widows and children of deceased employees eligible for family pension/benevolent
fund grant
 The Account can be opened with an initial/minimum deposit of Rs.1,000/-
 No fee (service charges) for maintaining such accounts will be charged
 There is no limit for maintaining minimum balance in the account. However; if balance
in BBA account remain "NIL" for continuous (06) months period, such accounts will be
closed by the bank
 Account holder will be allowed a maximum of 2 deposit transactions and 2 chequing
withdrawals, free of charge either through cash/through clearing per month otherwise
service charges of a regular banking account shall be applicable for that month as per
Bank's Schedule of Charges
 Unlimited free of charge ATM withdrawals from Bank's own ATM's will be allowed
 Free e-banking facility to view account balance and statement of account is available
Society Friendly Initiatives:
Senior Citizens and Special Persons: The Bank takes special care of senior citizens visiting the
branches and offices of BOP. Separate counters have been established for senior citizens in line
with the directives of Government of Pakistan and State Bank of Pakistan. Besides extended
employment opportunities to the special persons, the Bank also takes care of customers with
disabilities. All efforts are made to extend full cooperation to provide personalized services.
BOP Young Lions Saving Account": The Bank of Punjab introduces Young Lions Savings
Account - a whole new banking experience for the aspiring youngsters. Children under the age of
18 can now enjoy the privileges of their very own bank account (with guardian) accompanied
with many exciting features.
Corporate social responsibility: The Bank of Punjab recognizes its obligations to act
responsibly, ethically and with integrity in its interactions with all stakeholders be they, staff,
customers, community and the environment as a whole. The Bank, being one of the leading
commercial Bank of the country and financial arm of the provincial Government of the Punjab,
takes pride in actively participating in the programs and initiatives designed at the uplift of less
privileged communities regardless of their geographical locations and ethnic division. The Bank
primarily focuses the areas of education, sports, promotion of art & culture and social welfare
under its Corporate Social Responsibility (CSR) initiative.

10. Uplift of Less privileged communities and areas: The Bank keenly focuses on the uplift of less
privileged areas and communities of the country. While expanding branch network, special
consideration is given to less developed areas, thereby ensuring easy access of banking services
to residents of those areas. During the year 2013, the bank has opened several branches in the
remote areas of the country with full functionality of online connectivity and complete range of
products suitably tailored for them. The Bank also encourages participation of woman in
economic and social activities. Women’s Entrepreneur Finance Scheme
(WEFS) has been specifically designed for empowering women and help them to contribute
toward national economy. Further, in order to inculcate habit of savings among the children and
housewives, products like Young Lions Saving Scheme and Gharalyoo Saving Scheme have
been introduced.
The Bank of Punjab has played an instrumental role in supporting Government of Punjab
initiative for providing vehicles for commercial use to educated unemployed youth of the
country. In this regard, 20,000 vehicles have been financed, which are being used for commercial
purposes by the un-employed youth of the country.
Sports and culture: The Bank fully recognizes the importance of sports and culture in the
society. Accordingly, sports and cultural festivals are being sponsored throughout the year. The
Bank encourages participation of the talented youth in annual youth festivals every year. The
Bank also extends support to Regional cultural festivals and programs to promote local heritage
of the country. Further, with a view to promote different sports, tournaments of cricket squash
and polo etc. are also being sponsored by the Bank.
Environment protection and energy conservation: Considering the persistent energy crises in the
country, utmost efforts are being made to minimize the consumption of electricity in the Bank.
The management encourages steps for maximum utilization of day light in the Head Office and
all the Branches of the Bank. The use of generators is also strictly monitored for rational
utilization and measures are taken to reduce noise pollution.
In order to encourage alternative energy resources, the Bank has introduced Solar Penal
financing scheme with an objective to reduce energy woes of common man and help produce
low cost environment friendly energy.
BOP A Road Ahead:
The bank would continue to follow comprehensive strategies of business expansion ,
improvement in asset quality, procurement of low cost deposits, strengthening of internal
controls, bringing efficiency to control cost, rebuilding of brand image and strengthening the
capital base during 2014.