Ztbl Final Project Report

1. Final Project Report
ZARAI TARAQIATI BANK LTD.
Submitted to:
Prof. Farooq
Submitted by:
Arslan Ahmad
Reg#:
V1F15MCOM0003
MCOM: 2105-2017

2. ACKNOWLEDGEMENT
Every project big or small is successful largely due to the effort of a number of wonderful
people who have always given their valuable advice or lent a helping hand. We sincerely
appreciate the inspiration; support and guidance of all those people who have been
instrumental in making this project complete.
At this juncture we feel deeply honored in expressing our sincere thanks to our great teacher
Prof. Farooq for making the resources available at right time and providing valuable insights
leading to the successful completion of our project.
I am the student of University of Central Punjab, Lahore, we are extremely grateful to Zarai
Taraqiati Bank for the confidence bestowed in us and entrusting our project report.
Last but not the least we place a deep sense of gratitude to our family members and our
friends who have been constant source of inspiration during the preparation of this project
work.

3. Contents
1. Introduction
 History
 Reasons to change ADBP to ZTBL
 Mission
 Vision
 Objectives
 Head office
 Branches
 Board of Directors
2. Infrastructure of ZTBL
(i) Board of Committees
 Audit Committee
 Human Resource Management (HRM) Committee
 Risk Management Committee
 Information Technology (IT) Committee
(ii) Management Committee
 Assets Liabilities Management Committee
 Executive Coordination Committee
 Organizational Structure
 Shareholding
 ZTBL staff college
 Vision
 Mission
 Functions
 Approaches of Training
 Subsidiary (KSSL)
 Audit Department
(i) Pre Audit
(ii) Post Audit

4. Contents
3. Products & Services of ZTBL
(i) Treasury
 Scope and objectives of treasury
 Investments as per investment policy
(ii) Deposit schemes
(iii) Loan schemes
 Types of loans
 Production scheme
 Supervised agriculture scheme
 Zarkhaiz (one window scheme)
 Sada Bahar scheme
 Tea financing scheme
 Crop Maximization project
 Development loan scheme
 Types of security
 Payments period
 Recovery procedure
 Other schemes
(iv) Hajj Scheme
(v) Locker Facility

5. Contents
4. Analysis
(A) SWOT analysis
 Strengths
 Weaknesses
 Opportunities
 Threats
(B) PEST analysis
 Political
 Economic
 Social
 Technological
(C) Financial analysis
5. Annual Report
6. Findings and Recommendations
7. Conclusion

6. 1. Introduction:
The Zarai Taraqiati Bank Limited (ZTBL) (formerly known as Agricultural
Development Bank of Pakistan) is the largest public sector financial development institution
in Pakistan. Authorized capital of ZTBL is Rs.25, 000,000,000/- divided into 2,500,000,000
ordinary shares of Rs.10 each. Paid up capital of ZTBL are 12,522,440,670/-. The bank
serves around half a million clients annually and has over one million accumulated account
holders and a wide network of 32 Zonal Offices, 9 Audit Zones and 408 branches in Pakistan.
The total number of employees is 5,326, while 982 employees is provided by the KSSL. The
ZTBL make investment in some listed companies such as Nestle Milk pak Limited, Uqab
Breeding Farm Limited, Mubarik Dairies Limited & Dadabohy Agriculture Leasing Limited
in order to generate profit.
 History:
Pakistan is basically an agricultural country, and finance has been needed for its rapid
development. With a view to meet this basic need the Agricultural Development Finance
Corporation was set-up in 1951, and was entrusted with the task of providing financial
facilities for the development of agriculture including:
 Forestry
 Fishery
 Animal Husbandry
 Poultry
 Dairy Farming
Later on the Agricultural Development Bank of Pakistan was also established in
September 1957, under the Agricultural Development Bank Act. The Bank is to provide
credit in cash or in kind, warehousing and storage facilities to agriculturists, cooperative
societies and other bodies, of which the majority of members are agriculturists. As the
functions of the Agricultural Development Finance Corporation and Agricultural

7. Development Bank were similar and since both were working with
capital provided by the Government, they were merged into one organization known as
Agricultural Development Bank of Pakistan on February 18. 1961. The Agricultural
Development Bank of Pakistan is a banking company for the purpose of the Banking
Companies Ordinance and the State Bank of Pakistan Act. Zarai Taraqiati Bank Limited
(ZTBL) erstwhile Agricultural
DevelopmentBank of Pakistan (ADBP)is the premier financial institution geared towards the
development of agriculture sector through provision of financial services and technical
knowhow. The restructuring of former ADBP is being carried out with the aim:
 To uplift the agriculture and rural sector by raising farm productivity.
 Streamlining the institutional credit.
 Increasing income generating capacity of the farming community.
ZTBL was incorporated as a Public Limited Company on 14th December,
2002through repeal of ADB Ordinance of1961.
The new corporate structure redefines the bank's status as a Public LimitedCompany
registered under Companies Ordinance'1984with an independent Board of Directors which
aims at ensuring good:
 Governance,
 Autonomy,
 Delivering high quality
 Reasonto Change ADBP to ZTBL:
The restructuring of the former ADBP is being carried out with the aim to uplift the
agriculture and rural sector by raising farm productivity, streamlining the institutional credit
and increasing the income generating capacity of the farming community.

8.  Mission:
To play effective role in the promotion of economic growth, by enhancing
theavailability of credit to the agriculture sector, through reliable access to sustainablefinanci
ng,special lending programs,technicalassistance, and otherproducts& services,and to promote
career development opportunities for increasing professionalism and technical proficiencies
of employees.
 Vision:
Dedicated to serve the needs of the farming community, by delivering
financial products and technical services on a competitive and sustainable basis, in a
convenient, efficient and professional manner, leading to success of the Bank and
the farmers.
 Objectives:
 Develop and operate as a financially and operationally sustainable R.F.I of the
country.
 Assist rural community, particularly the small farmers, in raising their productivity
and income levels through timely delivery of credit, advisory and ancillary services.
 Build ZTBL's image as a proactive, client friendly, financially & operationally
sustainable with indigenous product deployment.
 Establish and provide backward and forward linkages to strengthen agri. value added
commodity chains.
 Engage in public - private and wholesale - retail partnership to deepen outreach and
reduce operating cost.
 To function as a rural commercial bank to mobilize rural capital formation and to
commercialize the agri. sector by delivering the true value of credit to the client.
Provide a wide range of risk insurance products to its clients.
 Open up its venues of operation to Domestic & International Banking Industry to
avail comparative advantages.

9.  Head Office:
Head office of ZTBL is located at Islamabad.

10. Board of Directors:
Mr. Mehboob
Hussain (Seceratory)
Mr. Asif Sharif
(Director)
Mr. SaeedAhmed
Director)
Mr. Abdul Bari
(Director)
Mr. Majyd Aziz
(Director)
Mr. Mohsin Aziz
(Director)
Mr. Asif Sharif
(Director)

11. Mr. Zia ul Mustafa
Awan (Director)

12. 2. Infrastructure of ZTBL:
The overall management, functions, meetings of the ZTBL is control by two committees
known as “Board & Management Committees”. The sub-committees of these two committees
are explaining as under;
(i) Board Committees:
 Audit Committee:
This committee has one chairman, four members that are the directors of the ZTBL and one
secretary from the Audit Department. The designation of secretary is the “Chief Internal
Auditor” of Audit Department.
 Human Resource Management (HRM) Committee:
This committee has one chairman & president of the ZTBL, four members that are the
directors of the ZTBL and one secretary from the HRM Department. The designation
of secretary is the “Head” of the HRM Department.
 Risk Management Committee:
This committee has one chairman & three members that are the directors of the ZTBL. But
one member designation is the risk manager. But in risk management committee, the
company secretary act as member and secretary as well.
 Information Technology (IT) Committee:
This committee has one convener & two members that are the directors of the ZTBL. One
member is from IT Department & his designation is the Chief information officer. While one
secretary (Head) of IT Department.

13. (ii) Management Committees:
 Assets Liabilities Management Committees:
This committee has one convener (CEO) & three members. The designation of the first
member is the SEVP of Operation Department. The designation of the second member is the
risk manager. But the third member (Chief Financial Officer) acts as member and secretary as
well.
 Executive Coordination Committee:
This committee has one
convener (CEO), one secretary (Compliance Officer) & three members. Thedesignation of
the first member is the SEVP. The designation of the second member is the EVP. The
designation of third member is the risk manager.
 OrganizationStructure of ZTBL:
The general direction and superintendence of the affairs of the bank are entrusted to a
12 members Board of Directors consisting of a chairman appointed by the Federal
Government, the Federal Government officers from the Ministries of Finance and Food and
Agriculture. There are four officers of the four Provincial Governments and one non official
nominated by each province. One member on this board represents the State Bank of Pakistan
also. In ZTBL, the president supervises and directs the senior executive who supervises and
directs the senior vice president, and senior vice president control voice president, who
control Assistant vice president, who finally supervise officers. The management hierarchy of
bank is as follows;

14.  Shareholding of Zarai Taraqiati Bank Limited (as on 31.12.2012)
SR. NO. NAMES OF SHARE HOLDERS NO. OF SHARES AMOUNT (Rs).
01 Government of Pakistan 1,251,189,067 12,511,890,670
02 Government of Punjab 292,340 2,923,400
03 Government of Sindh 125,545 1,255,450
04 Government of KPK 71,740 717,400
05 Government of Balochistan 37,875 378,750
06 Government of Erstwhile East Pakistan 527,500 5,275,000
Total:- 1,252,244,067 12,522,440,670
Board of Directors
President
Committees of ZTBL
Management
Committees
Board Committees
Executive
Coordination
Committee
Assets
Liabilities
ManagementC
ommittee
Audit
Committee
HRM
Committee
Risk
Management
Committee
Information
Technology
Committee

15.  ZTBL Staff College:
 Vision
Develop core and general competencies at different tiers of management, improve the
training infra-structure and develop the Staff College as Model Banking Training Institute of
the country.
 Objectives
(i) To unleash the hidden potential of the employees.
(ii) To identify and build right set of competencies in employees to optimize their
performance
(iii)To provide equal learning and development opportunities to employees across the
bank by enhancing their understanding of new Financial & Commercial products,
regulatory requirements and technological innovations for achieving future
organizational goals.
 Functions
(i) Identify, develop and impart best possible training & development innovative
solutions.
(ii) Assess training & development needs of all employees in the Organization.
(iii)Ensure that the Bank possess trainers who are adequately trained to design, deliver in
accordance with the training & development programs.
(iv)Establish an environment for trainees conducive to learning.
(v) Liaise with all major training agencies, trainers & vendors to the Bank’s advantage.
(vi)Overall responsibility of implementation of HR policies and programs in areas of
training, development and career planning.
(vii) Obtain feedback on various HR policies, procedures and programs to
recommend improvements.
(viii) Evaluate, propose nominations for overseas training programs through
International Banking Institutes.
(ix)Plan, arrange and conduct induction courses for new inductees, at all levels.
(x) Arrange internships for students of HEC recognized Universities, in the field and at
Head Office.
(xi)Process and finalize Employees Education requests to encourage the Employee’s to
improve their academic / professional qualification not only for their career growth

16. but also to prepare the Human Resource of the bank to meet the future challenges on
self sustainable basis
 Approaches of Training:
(i) Overview of subject presented by the Speaker/ Resource Person
(ii) Group discussions
(iii)Multimedia
(iv)Computer Lab Practices
(v) Case Studies
 Subsidiary (KSSL):
The ZTBL has one subsidiary which is known as the “Kissan Support
Services Limited”. It was incorporated as owned subsidiary of the ZTBL thatfunction
independently effective from 1st January 2006. The KSSL is a separate and distinct legal
entity that is controlled by the ZTBL. The KSSL has an authorized capital of Rs.100 million.
Its aim is to provide a support to the management of the ZTBL such as to focus on core
banking business and assign non-core activities. The KSSL operates under the Memorandum
and Article of Association.
Services:
Kissan Support Services Limited provides the following services to the Bank:
 Sports:
ZTBL has been involved in different games activities and tournaments at national level.
Being its noncore activity, the Bank handed over this responsibility to KSSL. To carry out
sports activities, KSSL has developed sports department whose duty is to arrange
participation of ZTBL teams of cricket (men & women), Shooting Ball, Squash (Men
& women), Football, Tennis (men & women) and Golf at national level tournaments
organized by PCB and different Sports Federations of Pakistan.
KSSL sports department also arranges Inter Regional/Inter Department competitions
to promote sports and recreational activities for Bank employees. Training camps are also
arranged for the players in order to keep them fit, physically as well as mentally.
Security Services:

17. Providing security services to ZTBL is a non core activity of the Bank which is given
to KSSL. To execute this responsibility, KSSL has its Security Department whose
responsibility is to undertake security measures for the protection of ZTBL’s assets,
employees and material. This department also maintains effective liaison system with Zonal
Offices, Staff, Customers, Government & Intelligence Agencies, and other Regulatory
Bodies. Physical monitoring by patrolling and check system, CCTV link up system, and
control room system are also developed by the Security Department of KSSL in order to
provide full proof security to the Bank.
Provision of man power:
Providing security services to ZTBL is a non core activity of the Bank which is given
to KSSL. To execute this responsibility, KSSL has its Security Department whose
responsibility is to undertake security measures for the protection of ZTBL’s assets,
employees and material. This department also maintains effective liaison system with Zonal
Offices, Staff, Customers, Government & Intelligence Agencies, and other Regulatory
Bodies. Physical monitoring by patrolling and check system, CCTV link up system, and
control room system are also developed by the Security Department of KSSL in order to
provide full proof security to the Bank.
Administrative Services:
 Some of the administrative services were also handed over to KSSL by the Bank as its
noncore activities. These services include:
 Provision of Janitorial Services to ZTBL building.
 Photocopying services.
 Provision of uniforms/liveries to Naib Qasids and Drivers.
 Maintenance of security equipments.
 Taking care of no profit no loss bases café for ZTBL and KSSL employees.

18. Sr.
NO.
Categories of Employees Provided by
KSSL
No. of
Employees
01 Darban and armed Guards 526
02 Drivers 291
03 Naib Qasids 25
04 Mali 25
05 Typists, Assistants and senior assistants. 41
06 Security supervisors 03
07 Sweepers 07
08 Players 20
09 Others 15
Total 982

19.  Audit Department:
(i) Pre Audit:
 Ensure availability of sanction of the Competent Authority.
 Ensure all government, regulatory and statutory requirements are being fulfilled.
 Ensure all BOD decisions are being followed while making payments.
 Ensure Competence vis-à-vis Financial Power of Approving Authority.
 Check Budget availability of the concerned GL Head.
 Check completeness of documentation and verification of arithmetic accuracy.
 Check Procedural Compliance.
 Perform any other assignment as & when assigned.
(ii) Post Audit:
 Review compliance with all the policies and procedures in place.
 To know all the relevant instruction applicable on KSSL.
 Report results and make recommendations to the management whenever necessary.
 Follow up on the process of implementation of the recommendations.
 Ensure that all internal control procedures are effectively enforced.
 Ensure proper vouching/book keeping is maintained. Ensure booking of transactions
in proper GL Heads and availability of supporting documents.
 Ensure that the payments are made as sanctioned by the Competent Authority and
pre-audited.
3. Products and Services of ZTBL:
(i) Treasury:
The Treasury Division of ZTBL was formally established on May 08, 2012 after the
approval of Board of Directors (BOD). To run treasury operations on professional grounds,
BOD also approved Treasury Investment Policy, Treasury Manual, and Contingency Plan
and Brokerage lines. It has been ensured that Treasury Division (TD) will strictly work under

20. approved policies and guidelines for BOD and will operate within pre-specified line and
limits. It is responsibility of each member of treasury division to ensure compliance of terms
and conditions laid down in this policy documents according to his/her role and as defined in
Treasury Manual and their specific job description. All funds available to TD will be utilized
optimally, timely and in a professional manner. Any exception may be granted based on its
rationale and justification and prior approval from ALCO.
The objectives of the above policy documents are to define the minimum standards
and controls that need to be complied to cover risks while placing, investing or borrowing
funds. These risks relate to interest rate risk, market risk, exposure risk, and liquidity and
delivery risks. Therefore, it is an area where significant control and review measures need to
be adopted by concerned departments/division specifically and by ALCO in general.
 Scope & Objectives of Treasury Division:
The Scope and objectives of Treasury Division covers all the Treasury & Investment
related activities within ZTBL; whereas the main objectives are as under:
(i) To maintain sufficient liquidity for the bank to honor its commitments as they fall
due.
(ii) To maximize overall return on managed assets.
(iii)To manage liquidity, utilizing excess funds efficiently and arrange/borrow in case of
anticipated shortfall
(iv)To keep ZTBLs funding cost as low as possible.
(v) ZTBLs ability to withstand immediate liquidity shocks or longer term liquidity
management problems depend on its capacity to make rapid decisions using factual
data and take timely actions to bridge the funding gap.
(vi)To establish appropriate early warning signals that will help in identification of the
liquidity problems.
(vii) To maintain liquidity in accordance with regulatory requirements.

21.  Investments as per investment policy:
(i) Government Securities which includes Treasury Bills (T-bills), Pakistan Investment
Bonds (PIB) and GoP Ijara Sukuk.
(ii) TDRs
(iii)Certificate of Investments
(iv)To keep ZTBL's funding cost as low as possible.
(v) Certificate of Musharika/Modaraba
(vi)Term Finance Certificates (TFCs)
(vii) Corporate Sukuk
(viii) Mutual Funds Investments
(ix)Equity Investment
(x) Money market activities, Reverse Repo/ Repo/Clean/Call etc
(ii) Deposit Schemes:
 Current Account
 PSL- saving Account
 Business Deposit Account (Special Account A/C)
 Rozana Bachat Account (Special Account A/C)
 Basic Banking Account
 PSL- Term Deposit
 Zarai Munafa Term Deposit Certificate (ZMTDC)
 MINFA Revolving Fund Deposit A/C (MRFDA)
 MINFA Special Saving Deposit A/C (MSSDA)

22. Types of Deposits Rate of Return Terms & Conditions
CURRENT A/C NIL
1. Initial deposit is Rs.200/-
2. Un-remunerative charges
@ Rs.50/- pm shall be
deducted on halfyearly basis.
3. Non Remunerative
Account.
4. No limit of transactions.
PLS-SAVING A/C (Regular
Saving A/c)
7% pa
1. No initial deposit.
2. Max. 8 debit transactions
during the month are allowed
for calculation ofprofit.
3. Profit shall be calculated on
the basis ofaverage balance
during the month.
4. Profit shall be credited to
a/c on half yearly basis.
BUSINESS DEPOSIT A/C
(Special deposit A/C)
7% pa
1. Initial deposit is Rs.10,000/-
2. Profit shall be calculated on
the basis ofdaily product.
3. No limit of withdrawals.
4. Profit shall be credited into
account on half yearly basis.
ROZANABACHATA/C
(Special deposit A/C)
7% to 8% pa (slabs from
Rs.10000/- to Rs.10 million )

23. BASIC BANKING A/C NIL
1. Min. initial balance is
Rs.1000/-
2. It is non-remunerative a/c.
3. Max. two deposit & two
chequing withdrawals during
a month are free ofcharge
4. If balance remains NIL, for
continuous period of6 Month
such account will be closed.
PLS-TERM DEPOSIT ( slab
rates per circular )
7% TO 8% (terms 3 months
to 60 months & above)
1. Min. initial balance is
Rs.1000/-.
2. Minimum holding is 3
months.
3. PLS saving a/c rate shall be
applied in case ofpremature
encashment & after
maturity.
4. Request ofroll over shall be
made in sufficient time before
its maturity otherwise it will
be transferred to TDR
Matured a/c
ZARAI MUNAFA TERM
DEPOSIT CERTIFICATE
(ZMTDC)
8%
1. Initial deposit if0.100
million.
2. Scheme is restricted for
Bank employees& their
relatives.
3. Profit shall be paid at
maturity.
4. Premature encashment OR
after maturity PLS-Saving a/c
rate shall be applied.

24. 5. Deposit ofthis scheme shall
not fall into the ambit of ROs
performances.
MUSTAQBIL MEHFOOZ
A/C
8%
1. Short term deposit scheme
for a fixed period of3 and 6
months.
2. Min. deposit is Rs.50,000/-.
3. In case ofpremature
encashment OR after
maturity PLS-saving a/c rate
shall be applied.
ZARAI TERM DEPOSIT
CERTIFICATE (ZTDC)
7.60 % pa(Irrespective of
premature period)
1. Minimum deposit is
Rs.25,000/-
2. Scheme is for a fixed period
of 3 years.
3. Minimum holding is 3
months
4. If depositor maintains
Rs.2,00,000/- , he will be
eligible to get agri. Loan from
ZTBL without any appraisal
fee.
MINFA REVOLVING FUND
DEPOSIT A/C. (MRFDA) 7.5% pa
1. Minimum deposit is
Rs.500/-
2. Introduced for village
organizations only.
MINFA SPECIAL SAVING
DEPOSIT A/C (MSSDA) 7.5% pa
1. Minimum deposit is
Rs.500/-
2. Introduced for village
organizations only.

25. (iii) Loan Schemes:
Zarai Taraqiati Bank Limited (ZTBL) is a specialized bank providing
agricultural credit in rural areas of the country. Pakistan is an agricultural country and near
about 60% of its population is working directly or indirectly related to agriculture industry.
But instead of being an agricultural country Pakistan is still not gaining benefits from
this sector which it can gain. Some time we even does not able to fulfill our food requirement
and sometime we have bumper crop but does not have facilities to store them properly, in this
way we are wasting our resources. To gain benefit from agriculture sector it is required to be
modernized to increase the per acre production and also to build ware houses to store. The
main hindrance in the modernization
of agriculture is the unavailability of finance. The other financial institutions feel reluctant in
giving finance to farmers due to high level of risk in the production of this field. To facilitate
farmers and to help in modernization of agriculture sector the government has established
this bank which is contributing its part in achieving government objective from many
decades. ZTBL is offering a blend of products to fulfill the need of different types of
customers.
Types of Loans
1. Short Term Loans:
Short term loans are loans for shorter period of less than a year. It includes, crop prod
uction working capital loans recoverable in lump sum commencing after theharvest/marketin
g of respective crops and within maximum period of 12 months.
2. Medium Term Loans:
Medium term loans are for a period of more than a year but less than 5 years. In
includes, dairy farming and livestock etc. The installments of these loans are usually paid
able in quarterly or half yearly basis.
3. Long Term Loans:
Long term loans are for a period of more than 5 years. These are development loans which
require large amount and also need some time to show its result in the shape
of better production. It includes loans for tractor, agricultural machinery, poultry farming, go
downs and orchard in yearly/half yearly installments within maximum period of 8 years.

26.  Production Scheme:
The examples of production loan items are given below:
1. Seeds, fertilizers and fuel
2. 2.Pesticides, insecticides and herbicides manual sprayers
3. Poultry feed, chicks and medicines
4. Hire charges of farm power
5. Water charges and electric charges for tube well
6. Production loan for growth of mushroom
7. Hired labor, water rates & fuel wood for tobacco curing.
 Supervised agriculture scheme:
Under this scheme agriculture loans are given for short, medium and long term loans
up to Rs. 1.00 million per borrower/per case.
The loans are sanctioned for In Fats, livestock, orchard, tractor, agricultural machinery, tube
well and irrigation facilities etc. under the scheme besides provision of credit, information are

27. provided to the farmers for planning the farm, production, guidance for implementation of the
scheme, marketing and repayment of loans.
 Zarkhaiz (one window operation):
For timely and conveniently provision of credit to purchase inputs,loans are provided
to the borrowers under One Window Operationbeing conducted twice a week during Rabi an
d Kharif seasons.Applications processed on the same day whereas sanction payments are
made within three days at Branch. For Rabi Crops one window operation from October to
January and for Kharif Crops from April to
September each year which is extendable as per requirement of popular area.
 Sada Bahar scheme:
For providing timely input loans for crops and working capital forpoultry and fishery etc,
the Bank has launched a Sada Bahar Scheme. Assessment for inputs requirements for the
whole year is made at the time of first application. The amount so assessed is treated as
Revolving Limit provided it is within the security limit. The Managers are authorized to
sanction such loan limits up to Rs.O.500 million. Scheme’s main features are as under:
• Revolving Credit Limit is fixed to cater production credit andancillary requirements of the
farmers during one year period.
• The documentation once completed remains applicable for three
years with yearly cleanup/renewal without any further documents.
• The borrowers can draw the credit in lump sum or in installments according to
his requirement.
• Like-wise he can repay in lump sum or in installments during the year when his cash
position allows him.
• Pass Book containing transactions in his SBS Account is supplied to every borrower free of
cost.
 Tea financing scheme:
In order to increase the tea cultivation in District Mansehra, Swat,Mutta, Shangla par and Dir
in Malak and Division, tea financing
schemehas been introduced which would not only save the hard earnedforeign exchange but

28. would also help improve the socio-economiccondition of the inhabitants of the area. The
salient futures of the scheme are given as under:
• Maximum Credit Ceiling of Rs.60, 000/- per acre has been fixed.
• Farmers owing land up to five acres are eligible to avail loans.
• Credit will be given in 3 installments: first year Rs.30, 000/-,2nd year Rs.15,000/-
3rd year Rs.15,000/- provided thedisbursed loan is used properly.
• The credit would be repayable within 1 year with 6 years
grace period with prescribed markup of 9% per annum.Rebate of 1 % will be allowed in mar
k-up on timely repayment and proper utilization of the loan.
 Crop maximization project:
Ministry of Food, Agriculture and Livestock (MINF AL), Government of Pakistan
had launched Crop Maximization Project in 109 villages in
various districts throughout the country to increase the productivity/yield of crops. Under the
project MINFAL had to provide funds of Rs, 299.893 million to ZTBL for disbursing loans
to the project farmers for purchase of inputs. Initially funds of Rs.468 Million had been
received by the Bank for the purpose. These funds were to be revolved for meeting input
credit needs in the project village’s till 30th June, 2014 after which Bank had to return the
principal amount to MINFAL. Accordingly Credit needs of the project farmers are being met
by respective ZTBL branches through Village Organizations formed for the purpose. Duly
the currency of the project Bank is authorized to charge 4% per annum mark-up on loans to
project growers to meet its operational cost, however in case of default Bank’s normal rate of
return i.e. 9% p will be applicable.
 Development Loan Scheme:
The loans for purchase of items like farm machinery, tractors, irrigation, land
development, orchard, green houses, dairy, poultry, fishery, livestock, farming…..etc
are recoverable up to one to eight years.

30. Per Acre Credit Limits
Major Crops
Wheat 16,000
Paddy (Rice) 19,000
Sugar Cane 30,000
Cotton 21,000
Maize 20,000
Minor Crops
Overall Credit Limit per Borrower Rs. 1.000 Million
Sada Bahar Scheme Rs. 0.500 Million
Potato 36,000 Bajra 11,000
Tobacco 29,000 Jawar 11,000
Mustard Mug 11,000 Gram 12,000
Tomato 19,000 Guar 3,000
Mash 3,000 Caster Oil 6,000
Lentil 11,000 Barley 9,000
Groundnut 14,000 Berceme 49,00
Sunflower 15000 Janter 4,000
Soya Bean 12,000 Garlic 26,000
Canola 13,000 Turmeric 25,000

31. Rape Seed 11,000 Ginger 30,000
Till (sesame) 12,500 Lacern & Shaftal 45,00
Sugar Beet 12,000
 Types of Security
Immovable Property
Agricultural Land
• Under Pass Book System 80%
• Outside Pass Book System 70%
• Under Alienability Certificate 66%
• Commercial/Industrial Land under Pass Book 80%
Outside Passbook System
• Urban Residential/Commercial Plots in all localities outside Pass Book 75%
• Alienability Certificate 66%
• Residential/Commercial Buildings 70%
• Lease holds rights of a leased land of CDA/KDA with 99 years lease70%
Moveable Property and Guarantees
1. Unconditional Bank guarantee from scheduled Banks
Up to maximum amount of an un-conditional Bank guarantee after keeping sufficient margin
for un-paid mark-up, cost, charges and expenses.
2. Guarantee issued by Central or Provincial Government
Full amount of loan and other charges are guaranteed.
3. Government securities
85% of face value or market values whichever is less.
4. Defense Savings & FEB Certificates
75% of value of certificates presented as security.

32. 5. Fix Term Deposits Recipients
85% of face value of deposits receipts.
6. NIT Units
80% of the face value or market values whichever is less.
7. Life Insurance policies
85% of surrender value
8. Pledge of Potatoes/SeedPotatoes price or market value whichever is less
Up to 75% of Govt. support.
Personal Surety
Against a bond with two sureties under General Credit and one surety in
Special Schemes up to Rs.25,000/- or Up to 50% of appraised value of properties of sureties
 RepaymentsPeriod
Sr.
No. Types of Loans RecoveryPeriod
1. Short term loans
Crop production working capital loans recoverable
lump sum commencing after the harvest/marketing of
respective crops and within maximum period of12
months.
2. Medium term loans Dairy farming and livestock etc. In yearly/ half
yearly/monthly installments and within a period of
5years.
3. Long term loans Tractor, agricultural machinery, poultry farming go
downs and orchards in yearly/ half yearly
installments within maximum period of 8 years and
above.

33.  RecoveryProcedure
a) Recovery Schedule
• Recovery schedule in each loan case as per terms of sanction
of loan is fixed and communicated to the borrowers afterdisbursement of loan.
• In case of default or failure in repayment of any installment ondue date the mark-
up shall continue to be charged and lastinstallment due to this may differ from the amount of
installments fixed at the time of disbursement.
b) Issuance of Notices
• Demand notice is issued before the due date of every installment.
• A Legal Notice is issued one month after the due date informing the borrower that if the
amount is not repaid within next one month, further legal action will be taken to recover the
dues.
c) Legal Action
• Legal action can be initiated against the defaulter if loan is not repaid even after expiry of
legal Notice period.
• Where the court in bank's favor has decreed a case, account isto be settled by recovery of
amount from the auction of them or tagged property.
• The bank may purchase the mortgaged property if
consideredfeasible to dispose it off later on through auction or in any manner deemed fit for
getting the best price.
• The bank may dispose of the mortgaged properties of defaulters for satisfaction of its dues
without intervention of courts
underFinancial Institutions (Recovery of Finances) Ordinance2001.Rescheduling of Loan
Repayment Facility.

34. d) Rescheduling of Loan Repayment Facility
• ZTBL allows rescheduling of repayment of installments to itsborrowers in order to maintain
credit discipline and to
mitigatetheir genuine problems in real hardship cases and in areasdeclared as calamity hit by t
he respective ProvincialGovernments
• The Rescheduling facility is to be considered by bank on case to-case basis and is to be
allowed on borrower's request only.
• The relaxation in recovery period shall not be allowed beyond one year in any case.
• The borrowers shall have to execute a supplementary loanagreement on Non Judicial
• Stamp Paper of appropriate value to give legal cover to extended period.
• The borrowers shall have to pay the return for the extended period.
e) Down Payment for Rescheduling of Loans
Rescheduling Number
Rate of down payment as against due
installments to the rescheduled
1st 10%
2nd 20%
3rd 30%

35.  Other Schemes:
(iv) Hajj Applications:

36. (v) LockerFacility:
Zarai Taraqiati Bank Ltd. apart from its core functional activity marked with country
based agri-business, has started to serve its valued customers by offering lockers facility.
Initially, this facility is being offered at following 12 branches:
S.No Name ofBranch Phone No. Address
1 H.O Branch Islamabad 051-9252782 Head Office Building, 1 Faisal Avenue Zero Point
Islamabad
2 Islamabad Branch 051-9252022 Block-7/F, ZTBL Officer Colony G-7/2, Islamabad
3 Lahore Branch 042-7353380 47-C, Sharah-e-Quaid-e-Azam,Lahore
4 Peshawar Branch 091-2262279 Chughalpura, GT Road Reshawar
5 Gujranwala Branch 055-9200206 D.C Road, Gujranwala
6 Faisalabad Branch 041-9210008 Opposite Punjab Medical College, Faisalabad
7 Multan Branch 061-9200509 61-A Abdali Road, Multan
8 Sahiwal Branch 040-9200424 915-D Block Farid Town Sahiwal
9 Sargodha Branch 048-9230491 Katchery Road, Sargodha
10 Khan Pur Katora Branch 068-5573079 Model Town- Near Paradise Cinema Khan Pur Katora
(RYK)
11 Shafi Court Branch 021-99206006 Shafi Court Building Mere weather Road KarachiSouth
12 Main Branch Gulshan-e-
Johar
021-34613618 St 4/3-A Block No.1 KDA Scheme-36 Gulistan- e -
Jauhar Karachi
Following are the approved rates for rent of lockers and key deposits against which lockers
will be allocated:
Type Specification Rent Per Annum
Rent after one month
from due date
Key Deposit
Small 6-1/2"x4-
1/2"x23"
Rs.1,200/- Rs.1,500/- Rs. 5,000/-
Medium 13-1/2"x4-
1/2"x23"
Rs.1,800/- Rs.2,250/- Rs. 10,000/-
Large 13-1/2"x8-
1/2"x23"
Rs.2,500/- Rs.3,125/- Rs. 15,000/-
Break Opening charges is Rs. 1500/- or Actual which-ever is higher

37. 4. Analysis
Introduction:
The analysis is a tool, which is used for checking the overall performance of any
organization. It is not only used on national level but also on international level for the
purpose of checking internal and external factors that influence the organization, positively
or negatively and leads the organization towards failure to success.
There are various analyses, such as the SWOT and PEST.
(A) SWOT Analysis:
The word “SWOT” is abbreviated to strengths, weakness, opportunities and threats
while analysis is a tool, which is used for checking the overall performance of any
organization. The SWOT analysis is strategic tool used to evaluate the
overall organization’s strengths, weakness, opportunities & threats and involves specifying
the objective of the organization and identifying the internal and external factors that are
favorable and unfavorable to achieve that objective.
The SWOT analysis is designed to lead an organization from failure to success.
Finally, we do the strength & opportunities because it is helpful while we avoid the
weaknesses and threats which are harmful for organization, which is shown in below figure.
Internal
Threats
Helpful
External
Threats
Harmful
Strengths
Opportunities
Weaknesses
Threats

38. 1. Strengths:
Strengths are the attributes of the organization which are helpful in achieving the
objective. In other words, strengths mean, the activities that an organization does well
favorable chances or positive factors in the internal environment due to which organization
achieve the objective. The strengths of the ZTBL are given as under;
(i) Strong Supervision and Management:
The supervision and management of the ZTBL is very strong such as step by step,
effective and efficient that leads the bank toward failure to success.
(ii) Provide many Facilities for Employees:
ZTBL provides the facility of health, safety and employee relations & training for the
purpose of maintaining the employees.
(iii) Employee’s Traits:
All staff members are well mannered in attitude, communications & following the ethics.
(iv) Risk Management:
The risk management of the ZTBL is still in the process of restructuring and efforts
have been put in place to adequately equip the risk management function with credit review,
credit risk rating and value at risk models. Pakistan is an agriculture country with major
portion of its economy dependent on agricultural sector. ZTBL recognizes this responsibility
and thus also caters to agriculture sector which promises high returns.
(v) Expansion of ZTBL:
The ZTBL is expanding day by day because customer accepts it. Its network expanded to
406 branches and 32 zonal offices in the Pakistan, which will attract large number of
customers.
(vi) The Elevator and Cameras Systems:
In the age of globalization, the elevator makes it possible to save time. While the cameras
in ZTBL, make the employees to stress on their work which is assigned or given.

39. 2. Weakness:
The attributes of the organization which are harmful in achieving the objective are
calledweaknesses. In other words, weakness means, the activities that anorganization lakes or
unfavorable chances or negative factors in the internalenvironment due to which
organization do not achieve the objective. The weakness of the ZTBL is given as under;
(i) Understaffing:
The total number of employees is 5,326 in the ZTBL Head office. In age of technology
and globalization, the understaffing may cause unnecessary work burden on employees
decreasing their efficiency.
(ii) Lack of Refreshment Courses:
Although the ZTBL has its own Training and Development Canter
but it needs to give refreshment courses to its employees more frequently so that they can
explore new dimensions and conquer worlds.
(iii) Seniority BasedPromotion:
Promotion in the ZTBL is purely on seniority basis rather than on performance. This
really de-motivates the employees because they know that it doesn’t matter whether they
perform well or bad.
(iv) Lake of Job Rotation:
Most of the employees work in a particular department and they specialize only in one
department. In case of absence of one employee, any other employee cannot perform this
work. In this way bank not only loses the business but also results in dissatisfaction of the
customer.
(v) Shortage of skillful Labor:
The shortage of skillful labor or manpower leads the organization from success to failure.
Because in the ZTBL, there are many contract and temporary based employees that has lake
of managerial& financial skills.
(vi) Lake of Qualification:
The employees working on the same position may have different degrees like B.Sc.,
B.A.… etc which devaluate the students of MBA, BBA, and other well qualified staff.

40. So there is a lack of professional
staff in different departments and lack of theoretical knowledge of the employees as well.
(vii) The Rate of Absenteeism and Turnover:
The absenteeism & turnover rate is too high that it results the conflicts in the
organization.
3. Opportunities:
The attributes of the organization which are helpful in achieving the objective are
called opportunities. In other words, opportunities means, the activities that an
organization does well or favorable chances or positive factors in the external environment
due to which organization achieve the objective. The opportunities of the ZTBL are given as
under;
(i) Proper Utilization of Recourses:
The Organization is made up three types of recourses, such as human, physical &
financial resources which come from external environment. However, in the age of
globalization for achieving growth, the competent, skillful and the English speaking
employees are one of the requirements of the organization.
(ii) Increasing Extensive Advertisements:
The ZTBL can increase the extensive advertisements of new products, services,
vacancies, in order to increase customers & heir competent employees from external
environment.
(iii) Mobile Credit:
The ZTBL can start mobile credit which is the best way to effectively utilize its present
resources to gain a competitive edge.
(iv) Increasing the Amount of Loans and Capital:
The ZTBL increases the amount of loan for their customers, which is five lacks, in
order to attract the large number of customers. The ZTBL issue a large amount of capital to
agriculture sector, in order to, utilize its resources more efficiently and to earn more profit.

41. (v) Creating Public Relations:
The ZTBL also, involves in creating public relations that will increase the image and
profitability of the bank. Often, public relations are conducted through the media that is,
newspapers, television, magazines, internet….etc that’s attract a large number of customers.
4. Threats:
The attributes of the organization which are harmful in achieving the objective are
called threats. In other words, threats means, the activities that an organization lakes or
negative factors in the external environment due to which organization do not achieve the
objective. The threats of the ZTBL are given as under;
(i) Avoid Discrimination:
The ZTBL can avoid discrimination because it is harmful for the bank in achieving its
objective. The bank can hire the employees from external environment. The right person is
for right for job will leads the organization towards failure to success.
(ii) Avoid Illegal Activities:
The employees of the ZTBL can avoid the illegal activities in external environment
that will reduce the reputation and image of the ZTBL.
(iii) Internet Banking:
It is the main problem that was found to be a lack of trust in the new banking channel
by customer. However, effective complaint management
can increase customer’s loyalty and trust in Internet Banking.
However, “Crises Management Plan” has been developed which is under review by
the senior management. The objective of this plan is to have clear guidelines and
communication in the event of any crises occurrence, which may threaten the safety of its
staff, the security of its assets, the continuity of its operation and the reputation of the ZTBL.

42. PEST Analysis:
1. Politicalanalysis:
Despite all international and public perceptions today, Pakistan is a functioning
democracy and gradually there is a change in complexion and composition
legislatures with more educated people and women entering into politics. Similarly it
helps in developing best strategies to implement that can support the revival of bank
industry. Like in the era of nationalization bank had to suffer as other industry that is
why the impact is still found in the performance of this industry.
2. Economic analysis:
Although banking sector development is important at early stages of economic
growth, general liberalization presuming a homogeneous bank role may not
necessarily promote growth. The estimated cost structure indicated that state-owned
commercial banks are large enough, while development financial institutions and
private banks can expect to obtain cost saving advantages by expending their
operations. Since scope economies are significant, portfolio diversification generally
increases bank profit. In addition, private bank are the most efficient, followed by
foreign and private banks. Public banks are the least efficient.
3. Socialanalysis:
Banks have always been helpful for the people in improvement of living condition of
poor people in various forms like giving loans for starting business or directly providing them
the instruments that could enhance their living conditions. Similarly ZTBL always tried to
provide loans to the needy people on soft terms and also helped to eradicate unemployment
by providing job opportunities.
4. Technologicalanalysis:
 There is inadequate communication infrastructure.
 Smaller and lowest computer facilities.
 Inadequate IT training.
 There must be an efficient IT department.

43. (C) Financial analysis:
Financial Analysis is the most important analysis which is conducted to check the
financial position of any organization. The brief financial analysis of Zarai Taraqiati Bank
limited.
Zarai Taraqiati Bank Unconsolidated Condensed Interm Statement
Financial Position as at 31 March 2014.
Un-Audited
31st March 2014
Audited
31st March 2013
Total Assets 142,615,634 148,448,277
Total Liabilities 109,435,609 115,965,018
Net Assets 33,180,025 32,483,259
Zarai Taraqiati Bank Unconsolidated Condensed Interm Profit and Loss
Account for Three Months Period Ended 31st
March 2014
March 31st 2014 March 31st 2013
Total Profit 265,083 269,833
Zarai Taraqiati Bank Unconsolidated Condensed Interm
Statement of Comprehensive Income for Three Months Period
Ended 31st
March 2014
March 31st 2014 March 31st 2013
Total Comprehensive Income 696,766 511,178
Quarter Ended

44. Zarai Taraqiati Bank Unconsolidated Condensed Interm Cash
Flow Statement for Three Months Period Ended 31st
March 2014
March 31st 2014 March 31st 2013
Cash Flow from Operating Activities (6,971,265) (1,701,444)
Cash Flow from Investing Activities 1,782,548 (5,553,041)
Cash Flow from Financing Activities 7,553,037 5,270,582
6. FINDINGS & RECOMENDTIONS
A single visit of a single branch of an organization can never provide all the
information about that organization. So we have found only some of the problems which
have been pointed out. We have also recommended some possible solutions of these
problems. The finding and recommendation for ZTBL are given as under;
Findings:
I. The employees working on the same position may have different degrees like B.Sc.,
B.A.… etc which devaluate the students of MBA, BBA, and other highly qualified staff. So
there is a lack of professional staff in different departments.
II. There is no job rotation for employees which create job burning.
III. The absenteeism & turnover rate of the employees is too high that’s results the
misunderstanding and conflicts in the bank.
IV. In the ZTBL, there is problem is understaffing of employees. The total number of
employees is 5,326 in the ZTBL Head Office. In age of technology and globalization, the
understaffing may cause unnecessary work burden on employees decreasing their efficiency.
Quarter Ended

45. CONSLUSION:
During our assignment on ZTBL, we found that ZTBL has high level of
professionalism and challenging environment and its culture is friendly. ZTBL seems Top
Agriculture Financing in the future as indicated by the financial indicators. It keeps energy
and potential to serve the deserving clients in all over the world. The bank has set itself a
vision to be a world-class bank.
This can only be achieved with dedication and a passion to excel in every activity.
The bank is really working well and contributing a valuable part in the economy of Pakistan
through tax, giving loan to government, giving loans to the businesses for their survival and
expansion, generating a well skilled human resource and employment etc. We have learnt a
lot during this assignment.
Recommendations
ZTBL should improve the Management system. They should be employee and
customer oriented. They have to introduce the dress coat into the organization. Loaning
procedure should be easier and convenient to the customers and easy processing system.
They should adopt the new agriculture technology for the high level production to increase
the GDP level of the country. ZTBL has to play vital role for introducing new energies to
overcome the problems of the fuel and bio gas. Political involvement should be eliminated so
that they can take good decision and actions for the better disbursement. Marketing
department should play vital role for introducing new products. They should also play role
for advertise their products and features and functions of the products. ZTBL Head Office has
to update the annual reports and manuals annually. They should hire the employee on the
merit basis. Their employees should have knowledge about their organization and about its
department where they are working. Employees should be qualified and productive.