BOP Report

2023
Bank of Punjab Internship Report
Submitted By:
Sadia Mushtaq
BBA Morning
Section B
2019-2023
Roll No. BBA 19-139
Submitted To:
DR. Sameera BILAL
UNIVERSITY OF THE PUNJAB

Contents
EXECUTIVE SUMMARY ....................................................................................................................................4
NATIONALIZATION OF BANKS..........................................................................................................................7
HISTORY OF BOP............................................................................................................................................12
BOARD OF DIRECTORS…………………………………………………………………………………………………………………………..…….13
CORE VALUES..............................................................................................................................................16
VISION STATEMENT...................................................................................................................................16
MISSION STATEMENT................................................................................................................................16
AWARDS AND ACHIEVEMENTS......................................................................................................................17
MAJOR COMPETITORS & CUSTOMERS OF BOP................................................................................................20
BRANCH NETWORK.......................................................................................................................................21
ORGANIZATION CHART ……………………………………………………………………………………………………………………………….22
POLICIES OF THE BOP…………………………………………………………………………………………………………………………………...23
EMPLOYEES PERSONNEL IN VARIOUS SECTIONS......................................................................................................24

CODE OF CONDUCT ……………………………………………………………………………………………………………………………………..27
PRODUCTS AND SERVICIES OF BOP……………………………………………………………………………………………………………...31
DEPARTMENTS IN BOP………………………………………………………………………………………………………………………………...43
DEPOSIT DEPARTMENT..................................................................................................................................43
NATURE OF DEPOSIT.................................................................................................................................44
CURRENT DEPOSIT.....................................................................................................................................44
SAVING DEPOSIT.........................................................................................................................................44
SHORT NOTICE TERM DEPOSITS...........................................................................................................45
CALL DEPOSIT.............................................................................................................................................45
TERM DEPOSIT RECEIPTS........................................................................................................................45
ACCOUNT OPENING...................................................................................................................................45
CLEARING DEPARTMENT................................................................................................................................47
OUTWARD CLEARING...............................................................................................................................48
INWARD CLEARING....................................................................................................................................48
REMITTANCE DEPARTMENT...........................................................................................................................48
TYPES OF REMITTANCE............................................................................................................................48
DEMAND DRAFT (DD):................................................................................................................................49
PROCEDURE..................................................................................................................................................49
PARTIES INVOLVED...................................................................................................................................50
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PROCEDURE..................................................................................................................................................50
MANUAL FUNCTIONS OF ACCOUNTS DEPARTMENT.......................................................................................51
TYPES OF VOUCHERS................................................................................................................................51
CASH BOOK...................................................................................................................................................52
MAINTAINING & UPDATING LEDGERS................................................................................................52
COMPUTERIZED FUNCTIONS OF ACCOUNTS DEPARTMENT............................................................................53
BILLS DEPARTMENT.......................................................................................................................................54
ADVANCES/CREDIT DEPARTMENT.................................................................................................................54
PRINCIPLES WHILE ADVANCING...........................................................................................................55
RUNNING FINANCE.....................................................................................................................................55
DEMAND FINANCE......................................................................................................................................56
ADVANCES AGAINST IMMOVABLE PROPERTY.................................................................................56
FINANCIAL ANALYSIS.....................................................................................................................................58
CURRENT RATIO………………………………………………………………………………………………………………………………………..59
EFFICIENCY RATIO……………………………………………………………………………………………………………………………………..60
PROFIT BEFORE TAX TO TOTAL INCOME..........................................................................................61

RETURN ON TOTAL ASSET.......................................................................................................................62
RETURN ON EQUITY …………………………………………………………………………………………………………………………………63
PRICE EARNING RATIO.............................................................................................................................64

EARNING PER SHARE................................................................................................................................65
VERTICAL ANALYSIS.......................................................................................................................................66
HORIZONTAL ANALYSIS.................................................................................................................................67
INTERNEE WORK ……………………………………………………………………………………………………………………………………….…68
SUMMARY OF INTERNEE WORK ………………………………………………………………………………………………………………….68
ACCOUNT OPENING DEPARTMENT ……………………………………………………………………………………………………………..70
REMITTANCE DEPARTMENT...........................................................................................................................74
CLEARING DEPARTMENT………………………………………………………………………………………………………………………………77
CREDIT DEPARTMENT…………………………………………………………………………………………………………………………………..79
SWOT ANALYSIS............................................................................................................................................82
LEARNING AS A STUDENT …………………………………………………………………………………………………………………………….85
RECOMMENDATIONS…………………………………………………………………………………………………………………………………..86
BIBLIOGRAPHY……………………………………………………………………………………………………………………………………………..87
ANEXUERE …………………………………………………………………………………………………………………………………………………..88
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EXECUTIVE SUMMARY
The Bank of Punjab was established in 1989 and was given the status of scheduled bank
in 1994. The Bank of Punjab is working as a scheduled commercial bank with a
network of more than 500 branches at all over major locations in the Punjab. The
Bank provides all types of banking services such as Deposits in Local Currency and
client foreign currency, remittances, and advances to business, trade, industry and
agriculture. The Bank of Punjab has indeed entered a new era of science to the nation
under experience and professional hands of its management.
The Bank of Punjab plays a vital role in the national economy through mobilization of
hitherto untapped local resources, promoting savings and providing funds for
investments. The bank offers attractive rates of profit on all deposits, opening of foreign
currency accounts and handling of foreign exchange business for example imports,
exports and remittances, financing, trade and industry for working capital requirements
and money market operations. The lending policy of bank is not only cautious and
constructive but also based on principles of prudent lending with maximum emphasis on
security.
The Bank provides all types of banking services such as Deposit in Local Currency,
Client Deposit in Foreign Currency, Remittances, 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, a
wholly owned subsidiary of The Bank of Punjab.
My internship program consisted of 6 weeks. During my internship I worked in different

departments i.e., account department, remittance department, clearing department and
credit department. Financial analysis of the bank shows a healthy sign regarding
financial position of the bank as well as operational results of the financial years. All
ratios are according to standard of the banking sector. The analysis shows a brighter
future of the bank.
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At the end of the report swot analysis and recommendations are given. Bibliography is
also a par which contain all sources from where I get data for preparing report.
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 feel deep sense of gratitude to Mr. Abdul Malik manager of The Bank
Of Punjab Gondlanwala Branch district Gujranwala for allowing to me to do my
internship
and also providing me necessary assistant and guidance. I am also grateful to
the departmental heads of the bank especially operations related department.
I express my heartiest and sincerest sense of gratitude to respectable

persons Mr. Abdullah and Mr. Sharif coordinators during my internship.
Under whose proper guidance, skillful suggestions
and constructive criticism this work got its present shape.
I owe depth of gratitude to my affectionate parents, and teacher who

supported me morally and inspired me to the higher ideas of life.
My gratitude also goes to all those friends who provided me any
assistance in what so ever manner in the preparation of this study.
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Sadia Mushtaq
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.
Reserve bank also refused to advance money to Pakistan to make essential payments
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such as salaries etc., also Pakistan’s share of Rs.75 billion in cash balance was withheld
by bank, causing hardships to the newly born state. In view of these hopeless state
affairs, it was agreed between the two countries that reserve bank would serve as
monetary authority in Pakistan only up to 30th June 1948.
NATIONALIZATION OF BANKS
The principle of nationalization of banks is to stream line the operation of commercial

banks in such a way that it may be conductive to the development activities in process in
the country.
Since the commercial banks were owned controlled by big business groups of the
country it was feared that these banks would not maintain uniformity in their operational
and would be instrumental to inflationary pressure. However, the considerations behind
nationalization are as:
▪ To form uniformity in the policy of the commercial banks so they may serve the best
national interest.
▪ To make the operation of commercial banks highly sensitive and responsive to the policy
of the government relation to financial matters.
▪ To make the credit policy of the commercial banks more purpose full and effective
especially in the development of economic sectors of the country. It acts as an agent of
the State Bank of Pakistan.
▪ To make the best use of the funds available at the disposal of these banks for the
economic development of the country.
▪ To eliminate unhealthy and uneconomic competition among commercial banks.

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▪ To development strong money banks market in the country so that the value of currency
may be maintained at stable level both in national facilities to exporter and agriculturists
which have not been satisfactory in the past years.
PUBLIC SECTOR COMMERCIAL BANKS
N
National Bank B
P
F
First Women Bank
W
Limited
B
K
The Bank of Khyber
B
B
The Bank of Punjab O
P
Page | 8
LOCAL PRIVATE BANKS
Askari Commercial Bank Limited
Bank Al-Falah Limited
Bank Al Habib Limited
Meezan Bank Limited
Faysal Bank Limited
Silk Bank Limited
Soneri Bank Limited
Union Bank Limited
Muslim Commercial Bank

Limited
Allied Bank of Pakistan
Union Bank Limited
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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
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INTRODUCTION
It has not so far been decided as to how the word ‘Bank’ originated. Some author’s
opinion is that, this word is derived from the word ‘Bancus’ or ‘Banque’, which means a
bench. Others authors hold the opinion that the word ‘Bank’ is derived from the German
word ‘Back’, which means joint stock fund. It is therefore so much difficult to decide as
to which opinion is correct.
Banking in fact is primitive as human society, forever since man came to realize the
importance of money as a medium of exchange, the necessity of a controlling or
regulating agency or institution was naturally felt. Perhaps it was the Babylonians who
developed banking system as early as 2000bc. It is evident that the temples of the
Babylon were used as ‘Banks’ because of the prevalent respect and confidence at the
clergy.
At the time of independence there were 631 offices of the scheduled banks in Pakistan,
of which 487 were located in West Pakistan alone. As a new country with resources, it
was very difficult for Pakistan to run its own banking system immediately. Therefore,
the expert committee recommended that the Reserve Bank of India should continue to
function in Pakistan until 30, September 1948, so that problems of time and demand
liability, coinage currencies, exchange etc., could be settled between India and Pakistan.
The non-Muslims started transferring their funds and accounts to India. By the end of
June 1948, the number of officers of scheduled banks in Pakistan declined from 631 to
255. There were 19 foreign banks with the status of small branch offices that were
engaged solely in export crop from Pakistan, while there were only two Pakistani
institutions, Habib Bank, and Australasia Bank, the customers of the banks are not
satisfied with the uncertain condition of banking.
Similarly, the Reserve Bank of India was not in the favor of Govt. of Pakistan. The
Govt. of Pakistan decided to establish a full-fledge central bank. Consequently, the
Governor General of Pakistan Quaid-e-Azam inaugurated the State Bank of Pakistan on
July 1,1948 Thus a landmark was made in the history of banking when the State Bank of
Page | 11
Pakistan assumed full control of banking and currency in Pakistan.
Page | 12
HISTORY OF BOP
The Bank of Punjab was established in 1989 and was given the status of scheduled bank
in 1994. The Bank of Punjab is working as a scheduled commercial bank with a
network of more than 500 branches at all over major locations in the Punjab.
The Bank provides all types of banking services such as Deposits in Local Currency and
client foreign currency, remittances, and advances to business, trade, industry and
agriculture. The Bank of Punjab has indeed entered a new era of science to the nation
under experience and professional hands of its management.
The Bank of Punjab plays a vital role in the national economy through mobilization of
hitherto untapped local resources, promoting savings and providing funds for
investments. The bank offers attractive rates of profit on all deposits, opening of foreign
currency accounts and handling of foreign exchange business for example imports,
exports and remittances, financing, trade and industry for working capital requirements
and money market operations. The lending policy of bank is not only cautious and
constructive but also based on principles of prudent lending with maximum emphasis on
security.
The Bank provides all types of banking services such as Deposit in Local Currency,
Client Deposit in Foreign Currency, Remittances, 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, a
wholly owned subsidiary of The Bank of Punjab.
Lending under Islamic mode of finance, main vehicles are Murabaha, Ijarah &
Musharika to encompass requirements of corporate, commercial and individual
customers.
Page | 13
BOARD OF DIRECTORS
Dr. Muhammad Amjad Saqib......................................................................Director
Syed Ghazanfar Abbas Jilani......................................................................Director
Mr. Mohammad Mudassir Amray ................................................................Director
Mr. Asif Reza Sana .......................................................................................Director
Ms. Nadia Rehman .......................................................................................Director
Mr. Muhammad Naeem Khan ......................................................................Director
Mr. Zafar Masud ....................................................................................President & CEO
Mr. Kamran Hafeez ....................................................................... Secretary to the Board
BOARD AUDIT COMMITTEE
Mr. Mohammad Mudassir Amray ................................................................Chairman
Syed Ghazanfar Abbas Jilani .........................................................................Member
Mr. Mohammad Naeem Khan ........................................................................Member
RISK MANAGEMENT, COMPLIANCE AND NPL REVIEW COMMITTEE

(RMC&NPLRC)
Syed Ghazanfar Abbas Jilani .........................................................................Chairman
Mr. Mohammad Mudassir Amray....................................................................Member
Dr. Muhammad Amjad Saqib ..........................................................................Member
Ms. Nadia Rehman ...........................................................................................Member
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Mr. Mohammad Naeem Khan ..........................................................................Member
HUMAN RESOURCE, COMPENSATION, PERFORMANCE EVALUATION

AND NOMINATION COMMITTEE (HRCPE&NC)
Mr. Asif Reza Sana .........................................................................................Chairman
Dr. Muhammad Amjad Saqib ...........................................................................Member
Syed Ghazanfar Abbas Jilani .............................................................................Member
STRATEGY, ISLAMIC AND PRIORITY SECTORS’ FNANCING COMMITTEE

(SI&PSFC)
Dr. Muhammad Amjad Saqib ...........................................................................Chairman
Mr. Asif Reza Sana ..................................................................................Member
Ms. Nadia Rehman ..................................................................................Member
Mr. Mohammad Naeem Khan .................................................................Member
INFORMATION TECHNOLOGY AND COMMUNICATIONS COMMITTEE

(ITCC)
Ms. Nadia Rehman.....................................................................................Member
Mr. Asif Reza Sana.....................................................................................Member
Mr. Mohammad Mudassir Amray .............................................................Member
Mr. Zafar Masud ........................................................................................Member
AUDITORS
Page | 15
A.F. Ferguson & Co. Chartered Accountants
REGISTRAR
M/s. Corplink (Pvt) Limited Wings Arcade, 1-K, Commercial, Model Town, Lahore.
Telephones: +92 42 35916714, 35916719, 35839182
Fax No. +92 42 35869037
REGISTERED OFFICE
BOP Tower, 10-B, Block-E-II, Main Boulevard, Gulberg-III, Lahore.
Telephones: +92 42 35783700–10
Fax No. +92 42 35783975
UAN: 111 200 100
WEBSITE
www.bop.com.pk
Page | 16
CORE VALUES
 Our Customer As our first priority.
 Profitability For the prosperity of our stakeholders that allows us to

constantly invest, improve and succeed.
 Corporate Social Responsibility to Enrich the Lives of community where we operate
 Recognition and Reward For the talented and high performing employees
 Excellence In everything we do.
 Integrity In all our dealings.
VISION STATEMENT
“To be a customer focused bank with service excellence.”
MISSION STATEMENT
“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.”
Page | 17
AWARDS AND ACHIEVEMENTS
BOP & Lahore Qalandars Partnership
Lahore Qalandars won PSL 2022. BOP was the official bank partner of Lahore
Qalandars.
Best Bank for Small & Medium Businesses
The Bank of Punjab was awarded Best Bank for Small & Medium Businesses at the
Pakistan Banking Awards in December 2022.
Best Corporate Report Award
The Bank of Punjab was awarded Best Corporate Report Award of the year 2021 by
Institute of Chartered Accountants of Pakistan.
Pakistan’s Best Bank for CSR
The Bank of Punjab was bestowed international award for Pakistan’s Best Bank for CSR
by Asiamoney in Singapore.
Corporate Finance House of the Year
The Bank of Punjab was awarded Corporate Finance House of the Year by CFA Society
Pakistan in 2022.
Best Digital Channel/Platform Implementation & Best Project Implementation
Awarded to BOP & Ndc. Tech at the Global Fintech Innovation Awards in 2022.
Certificate of Merit
The Bank of Punjab was awarded Certificate of Merit for the year 2021 in the category
of Public Sector banks by South Asia Federation of Accountants on the Annual Report of
the bank.
Top Mid-Size Bank Award
Page | 18
The Bank of Punjab was awarded Top Mid-Size Bank Award for Agriculture Financing
by the State Bank of Pakistan in 2022.
Umber One Bank Award
BOP was awarded Number One Bank Award by J.P. Morgan against Highest Straight
Through Processing (STP). Rate of 96.12% achieved against Euro payments processed
in the year 2021.
Fastest Credit Card Launch
The Bank of Punjab was awarded Fastest Credit Card Launch across MENA in Edge
2022.
Power Deal of the Year
The bank was awarded Power Deal of the Year award by the Asset-Triple A.
Number 1 Bank Award for Kamyab Jawan Program
The Bank of Punjab (BOP) has been given Top Bank Award under Kamyab Jawan
Program by the Honorable Prime Minister of Pakistan Mr. Imran Khan at the “Kamyab
Jawan Convention 2021” held at Jinnah Convention Center, Islamabad on 24 November
2021.
Top Performing Bank in Kamyab Jawan Program
In December 2020, the Prime Minister of Pakistan awarded trophy to the Bank of Punjab
for being the Top Performing Bank in Prime Minister’s Kamyab Jawan Program (Youth
Employment Scheme) Disbursement.
Page | 19
Number One Bank by J.P. Morgan Bank
The Bank of Punjab has been awarded Number one bank by J.P. Morgan Bank against
highest STP rate of 96.12% achieved against EUR payments processed in the year 2020.
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.
Achievement Award
The Lahore Chamber of Commerce & Industry (LCCI) awarded the Bank "LCCI
Achievement Award" 2006.
Page | 20
MAJOR COMPETITORS OF THE BANK OF PUNJAB
United bank limited

Mezan bank
MCB
Soneri bank
Bank ALFALAH
Bank Al Habib
Allied bank limited
National bank of Pakistan
Silk bank limited
Standard chartered
Summit bank
MAJOR CUSTOMERS OF BOP
Some of the major customers of Bank of Punjab are:
 Educational Institutes
 Agriculturists
 Pakistan Telecommunication Private Limited
 WAPDA
 Pharmaceutical Companies
 WASA
 MDA
Page | 21
BRANCH NETWORK
 Lahore Region
 Rawalpindi Region
 Karachi Region
 Quetta Region
 Multan Region
 Gujrat Region
 Faisalabad Region
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 Gujranwala Region
ORGANIZATIONAL CHART OF BOP
Page | 23
POLICIES
Page | 24
Introduction
The BOP has its policies of compliance with the regulations of the SBP. It has
formulated the policies to avoid irregularities. The broad guidelines are laid down for its
day-to-day activities. The branch has laid down the strategies to achieve the goals. The
branch has the policy to increase deposit and decrease lending. It has enjoyed the ever
number of increasing deposits.
Know your customer policy and anti-money laundering policy
In order to achieve desired KYC standards @ prevent the bank of Punjab

from being used for money laundering, terrorist financing, transfer or induction of illegal
ill-gotten money in to the banking system, the KYC Policy has been developed and
implemented. In the present scenario of international as well as local banking the
importance of know your customer.
The KYC Policy has been developed to ensure and to obtain the proper verifiable answer
to the following questions.
Do you know who you are dealing with?
Do you know what your customer’s needs and circumstances are?
Can your customer be engaged in money laundering?
Implementation of KYC policy, on one hand provides protection against unforeseen

events, money laundering to the bank and satisfaction protection to branch management
staff on the other.
Obtaining maximum realistic information about the customers is the basic principle
of good KY C policy. Branch officers and staff should prudently ensure that at the time
of account.
Purpose of policy
The purpose of the KYC/AML policy is to:
Adhere to know your customer KYC policies and procedures.
Page | 25
Comply with all applicable money laundering laws and regulations and internal policies
and procedures
Protect the bank from being used as a channel for illegal transactions arising from money
laundering activity.
Protect the reputation of the bank and clearly disassociate from theincreasing danger of
organized criminal activity and money laundering.
On detection of suspicious activity, take appropriate action at management level.
Accounting policies
Foreign currencies:
Transactions in foreign currency are translated to rupees at the exchange rates prevailing
on the date of transaction.
Foreign bills purchased are valued at forward rates applicable to their respective
maturities. All exchange differences are charged to income.
EMPLOYEE’S PERSONNEL IN VARIOUS SECTIONS
Bank Teller Job Description: Top Duties and Qualifications

A Bank Teller, or Bank Clerk, is a bank employee who helps clients of the bank with
routine financial transactions. Their day-to-day duties include making deposits, handling
withdrawals and issuing money orders or cashier’s checks to bank customers.
A Bank Teller’s primary responsibility is customer service. Bank Tellers must be

knowledgeable about a range of bank operations and be able to answer any questions a
customer has. Other duties and responsibilities may include:
 Recording transactions, which involves logging checks and preparing transaction reports
 Counting and packaging currency
 Reconciling cash drawers
 Opening new accounts and helping with loan applications
 Exchanging foreign currency
 Promoting the bank’s products and services
 Keeping customers’ personal information confidential
Page | 26
 Communicating with other bank team members
Job Duties
Bank clerks process banking and other financial information. You may work for banks
and credit companies, investment companies or other financial institutions.
Generally, bank clerks:
 Keep records of deposits, withdrawals, loan and mortgage payments, cheques and
securities sales.
 Process loan and mortgage applications and payments, retirement savings plan
applications and contributions, term deposits, drafts and money orders.
 Check and balance automatic teller machine (ATM) transactions and ledger entries,
calculate service charges and interest payments and tell customers about discrepancies.
 Answer customer inquiries and provide information on banking products, policies and
services.
 Sell drafts, money orders, travelers’ cheques and foreign currency; rent safety deposit
boxes; and open and close savings, chequing and other accounts.
Essential Skills
As a bank clerk, you need to:
 Speak, read and write English.
 Understand and follow standard accounting procedures.
Page | 27
 Be very accurate in your work.
 Use word processing, spreadsheet, database and email software.
 Use financial software.
 Work well with other people and on your own.
Customer Service Representatives
Customer service representatives assist customers in opening new bank accounts,

modifying existing accounts, and completing paperwork for products such as
Certificates of Deposit. Additional duties include answering questions about the bank's
products and services and responding to customers' questions. Customer service
representatives may also be responsible for answering phone calls, assisting callers or
connecting them with the proper department.
Loan Officers
Bank staff duties and responsibilities include funneling loan candidates to the loan
officers. Bank loan officers meet with applicants and help them complete loan
applications. Loan officers answer questions about the different loan types the bank
offers and explain contract provisions. Once the application is completed, loan officers
verify the information and evaluate the applicant's potential to satisfy the loan terms. In
some financial institutions, loan officers make the final decision on loan approval or
denial. In others, loan officers make only a recommendation and a higher-level
executive makes the final decision.
Financial Managers
In the banking business, financial managers examine financial reports and prepare
statements for upper management and owners, according to the Bureau of Labor
Statistics. Financial managers often work in supervisory roles, managing other
employees such as bookkeeping and accounting clerks. In addition, financial managers
Page | 28
work closely with upper management, advising on ways to reduce costs and increase
profits.
CODE OF CONDUCT AND BUSINESS PRACTICES
All employees of the Bank of Punjab, hereafter called BOP, are required to follow a
Code of Conduct & Business Practices in all areas of professional conduct. They must
abide by the following:
LAWS/ RULES
 All employees shall conform to and abide by the Bank rules and obey all lawful orders
and directives which may from time to time, be given by any person or persons under
whose jurisdiction, superintendence or control they may, for the time being, be placed.
They undertake at all times to comply with and observe all applicable laws, regulations
and Bank's policies, wherever they operate.
 All employees stand firmly against supporting the activities of any Group or individual
that unlawfully threatens public order and safety. They shall not be a member of any
politica1 party, take part in, subscribe in aid of, or assist in any way, any political
movement in or out side of Pakistan or relating to the affairs of Pakistan. They shall not
express views detrimental to the ideology, sovereignty or integrity of Pakistan.
 No employee shall canvass or otherwise interfere or use his influence in connection with
or take part in any election as a candidate to a legislative / local body or issue an address
to the electorate or in any manner announce or allowed to be announced publicly as a
candidate or prospective candidate whether in Pakistan or elsewhere. He /She may,
however, exercise his/her right to vote.
 No employee shall bring or attempt to bring political or other pressure / influence

directly or indirectly to bear on the authorities / superior officers or indulge in derogatory
pamphleteering, contribute, or write letters to the newspapers, anonymously or in his/her
own name with an intent to induce the authority/ superior officers to act in a manner
inconsistent with rules, in respect of any matter relating to appointment, promotion,
transfer, punishment, retirement or for any other conditions of service of employment.
Page | 29
INTEGRITY
 All employees shall conduct their self with the highest standards of ethics, professional
integrity and dignity in all dealings with the public, clients, investors and fellow bankers
and not engage in acts discreditable to the Bank, profession and nation. If he/she
becomes aware of any irregularity that might affect the interests of the Bank, he/she shall
inform the senior management immediately.
 Employees shall maintain all books, data, information and records with scrupulous
integrity, reflecting in an accurate and timely manner all transactions/reports.
 Employees shall avoid all such circumstances in which there is personal interest conflict,
or may appear to be in conflict, with the interest of the Bank or its customers.
 Employee shall not use his/her employment status to seek personal gain from those
doing business or seeking to do business with BOP, nor accept such gain if offered, they
shall not accept any gift, favor, entertainment or other benefit the size or frequency of
which exceeds normal business contacts from a constituent or a subordinate employee of
the Bank or from persons likely to have dealings with the Bank and candidates for
employment in the Bank.
 Employees shall not accept any benefit from the estate of, or a trust created by a
customer, or from an estate or trust of which a Bank's Company or business unit is an
executor, administrator or trustee.
CONFIDENTIALITY
 All employees shall maintain the privacy and confidentiality of all the information
acquired during the course of professional activities and refrain from disclosing the same
unless otherwise required by statutory authorities of law after consultation with
approving authorities, if required in case of any ambiguity about disclosure. All such
information will remain as a trust and will only be used for the purpose for which it is
intended and will not be used for the personal benefit of any individual(s). Inside
information about Bank's customers/affairs shall not be used by them for own gain, or
for that of others either directly or indirectly.
 All employees to ensure meticulous compliance of the IT security policy of the Bank.
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CODE OF CONDUCT AND BUSINESS PRACTICES
PROFESSIONALISM
 Employees shall serve the Bank honestly and faithfully and shall strictly serve the Bank's
affairs and the affairs of its constituents. They shall use utmost endeavor to promote the
interest and goodwill of the Bank and shall show courtesy and attention in all
transactions / correspondence with officers of Government, State Bank of Pakistan, other
Banks & Financial Institutions, others Establishments dealing with the Bank, the Bank's
constituents and the public.
 Employees shall disclose and assign to BOP all interest in any invention, improvement,
discovery or work of authorship that he/she may make or conceive and which may arise
out of his/her employment with BOP. If his/her employment is terminated, all rights to
property and information generated or obtained as part of his/her employment
relationship shall remain the exclusive property of BOP.
 Employees shall be truthful in all advertisings and promotional efforts and shall publish
only accurate information about the Bank's operations under valid authority.
 No employee shall engage in Money Laundering and will be extremely vigilant in

protecting BOP from being misused by anyone to launder money by strictly complying
with "Know your customer" (KYC) policies & procedures.
BUSINESS / WORK ETHICS
 All employees will respect fellow colleagues and work as a team. They shall at all times
be courteous and not let any personal differences affect their work. They will treat every
customer of the Bank with respect and courtesy.
 Employees shall make sure, good attendance and punctuality and demonstrate a
consistently good record in this area. For any absence during working hours, he/she will
obtain written permission of his/her immediate supervisor. He/she shall not absent
himself/herself from his/her duties, nor leave his/her station overnight, without having
first obtained the permission of the Competent Authority. In case of emergency, if it is
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not possible to obtain prior permission, necessary permission confirmation will be

obtained from the Competent Authority within 24 hours.
 Employees shall maintain a standard of personal hygiene and dress appropriately for
attendance at work. Their appearance must inspire confidence and convey a sense of
professionalism.
 All employees shall, as personal responsibility, safeguard both the tangible and
intangible assets of BOP and its customer(s) that are under their personal control and
shall not use Bank assets for their personal benefits except were, permitted by BOP.
They shall not use any Bank facilities including a car or telephone to promote trade
union activities, or carry weapons into Bank premises unless so authorized by the
management, or carry-on trade union activities during office hours, or subject Bank
officials to physical harassment or abuse.
 Employees shall not indulge in any kind of harassment or intimidation whether

committed by or against any senior/junior, co-worker, customer, vendor or visitor. They
shall not use language, written or spoken in intra-office communication(s) or
communication (s) with individual(s) outside the office that may contain any statement
or material that is offensive to others. They shall never use the Bank's system to transmit
or receive electronic images or text containing ethnic slurs, social epithets or anything
that might be construed as harassing, offensive or insulting to others.
 Employees shall not indulge in any sexual advance, request for sexual favors or other
verbal or written communication or physical conduct of a sexual nature or sexually
demanding attitudes, causing interference with work performance or creating an
intimidating, hostile or offensive work environment.
 Employees to meet their responsibilities to fellow employees, customers and investors

they shall help in maintaining a healthy and productive work environment and shall not
engage in the selling, manufacturing, distributing, using, any illegal substance or being
under the influence of illegal drugs while on the job. Smoking is allowed only in
designated areas.
 Employees shall ensure strict adherence to all health and safety policies as may be
implemented from time to time by the Bank.
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 Employees shall not give any interview in the print /electronic media or have his/her
photograph displayed or act in television / stage plays or in cinema without having
permission from the Competent Authority.
 Employees shall intimate Human Resources Management of any changes in the personal
circumstances relating to their employment or benefits.
 Employees must raise concerns & suspicions, in confidence, about any actual or
operational illegal activity or misconduct complying with the Whistle Blowing policy
and Sexual Harassment policy. Failure to do so will result in employee being deemed a
party to the irregularity.
PRODUCTS AND SERVICES OF BOP
Details of some key conventional banking liability products of bank are as:
CURRENT DEPOSITS
BOP Tijarat current account
BOP Tijarat Account is a current account especially designed to cater needs of business
Individuals as well as Business entities including but not limited to Proprietorships,
Partnerships, Limited / Unlimited Companies, NGOs, NPOs, Trusts, business-oriented
government / Semi government entity and any legal entity.
Salient Features:
 Value added features on maintaining monthly average balance of Rs.25,000
 Free IBFT through ATM • Free Online Banking;
 ATM/Over the Counter Cash Withdrawal Insurance up to Rs.25,000/- per day (terms,
conditions & exclusions of insurance company will apply)
 Business Assets Insurance up to Rs.1 million (terms, conditions & exclusions of

insurance company will apply)
 Free issuance of Debit Card, for free renewals, monthly average balance criteria to be
met.
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 Free unlimited issuance of Cheque Books
 Free small or medium locker subject to availability & on maintaining monthly average
balance of Rs. 1,000,000. However, Key Deposit to be taken irrespective of maintenance
of annual average balance of Rs. 1,000,000/- and above.
 Free issuance of universal cheques • Free issuance of CDR
BOP LIFE CURRENT ACCOUNT
It is a current account especially designed to cater banking needs of individuals.
Salient Features:
 Value added features on maintaining monthly average balance Rs.25,000/-
 Free issuance of Silver Debit card, for free renewals, monthly average balance criteria to
be met.
 Free online banking
 Free issuance of universal cheques.
 Free Life Insurance cover equivalent to three times of last three months average balance
of account with an upper limit of Rs 2.0 million (terms, conditions & exclusions of
insurance company will apply).
 Free e-banking facility to view statement of account.
 SMS Alert facility is available subject to payment of annual charges as per bank’s
schedule of charges.
 Free of Cost Utility Bills Deposit Facility through BOP ATM Network, BOP Phone
Banking and self-service IVR system is available.
BOP salary plus account
It is a current account designed for salaried individuals working for an organization that
is maintaining its salary disbursement account with BOP with a focus on employees of
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govt/semi govt organizations, their allied corporations, autonomous bodies and private
sector entities.
Salient Features:
 Free issuance of Classic Debit card
 Free Collection of Outstation Cheques up to 3 Gross Salaries in a Month.
 Free Life Insurance of Rs.500,000/- on maintaining Minimum Monthly Balance of

Rs.50,000 (terms, conditions & exclusions of insurance company will apply)
 Consumer Loan Facility on Attractive Terms.
 Option to avail salary loan (terms and conditions apply)
 Free e-banking facility to view statement of account
BOP youth education account
It is a current account especially designed for young students of schools, colleges and
universities up to 30 years of age with additional feature of Education Insurance.
Salient Features:
 Students up to age of 30 years will be allowed to open the account in this scheme. If the
age of student is below 18 years, minor/guardian account will be opened and new/normal
YEA account will be opened upon submission of CNIC of the student, as per existing
procedure.
 Account can only be opened in Minor/Guardian and Student categories. Joint Accounts
are not permitted. • There is no minimum balance limit hence account maintaining
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charges will not be applicable.
 Free Pay Pak Debit card
 Free issuance of universal cheques favoring any Educational Institution.
 The student qualifying for education cover must be an account holder for at least One
Calendar Month.
 Student will be provided Insurance cover as long as he/she is less than 30 years of age or
his/her parent/guardian is in the age band of 18-60 years.
 Bank will provide free of cost education insurance cover to student amounting
Rs.20,000/- per month for 24 months in case of Natural Death and Permanent Total
Disability of Parent/Guardian (one person only), whose name has been reported to the
bank at the time of account opening.
 In case of Accidental Death, the insurance cover will be doubled to Rs.40,000/- per
month for 24 months. Terms, conditions & exclusions of insurance company will apply.
 Free e-banking facility to view statement of account.
BOP current direct pension credit account
It is a current account opened in the light of Supreme Court’s SUO MOTO notice (in
year 2007) regarding problems being faced by the pensioners and its subsequent order
that pension may be disbursed through all branches of all the licensed banks in Pakistan.
BOP Current Direct Pension Credit Account can be opened by any individual pensioner.
Purpose of account opening will be specifically mentioned on the AOF as “Direct Credit
of Pension” only
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Salient feature:
 No fee or service charges for maintaining such account will be charged.
 Copy of Pension Book mentioning monthly amount of pension and other particulars will
also be required along with other documents as required in case of individual accounts.
 Pensioner & Co-indemnifier will be indemnifying the bank (on stamp paper) to the
extent of six month’s aggregate pension amount or authorize the bank to mark lien on
his/her account up to this amount either by depositing cash or by no withdrawal of
monthly pension up to six consecutive months.
 Free e-banking facility to view statement of account
BOP Assan current account
Opening a bank account is not an easy task nowadays. A long list of formalities is
required to open a bank account. The Bank of Punjab has introduced a simplified
account "BOP Asaan Current Account". This is a current account for low risk/low
income unbanked/under banked individuals who face dificulties in account opening due
to strict requirements/formalities. These segments of society may include but are not
limited to self-employed, pensioners, students, farmers, women/housewives, young adult
population, work force etc.
Salient features:
 Account can be opened with minimum of Rs.100
 Account can be opened as individual, joint or minor type.
 Account can be opened with minimum formalities and on one pager account opening
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form.
 There is no minimum balance requirement, no account maintaining charges.
 The account will preferably be Debit Card based. However, cheque book may be issued
as per choice of the customer.
 Free 1st 25 leaf cheque book
 SMS Alerts service is available at subsidized charges of PKR 40 per month
 Per Month Total Debit Limit and total Credit Balance limit is Rs.500,000
 Account can be converted into normal current account after completion of remaining
formalities if later on, accountholder requires financial services for higher amounts than
the above specified limits.
BOP Kissan dost current account
BOP Kissan Dost Current Account is a current account Agricultural Business Solution to
cater to banking needs of agricultural sector.
Salient features:
 initial deposit required for account opening is Rs. 1,000
 Monthly Average Deposit Rs. 10,000 to be maintained for value added features
 Free issuance of Pay Pak Debit Card
 Free 1st 25 leaf cheque book
 Free 2 Universal cheques per month
 Rate break/discount of 1.00% per annum on all Agricultural (ACD) Financing Products
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BOP Asan remittance current account
Opening of a bank account to receive home remittances from our dear ones is not easy
nowadays and involves a long list of formalities. The Bank of Punjab has introduced
"BOP Asaan Remittance Current Account" to facilitate opening of bank accounts by low
risk/ low income unbanked/under banked customers for receipt of home remittances
directly into bank account instead of resorting to traditional over the counter cash
transactions. These segments of society may include but are not limited to
skilled/unskilled work force, farmers, less educated/uneducated people, laborers/daily
wagers, women/housewives, self-employed individuals, pensioners, young adult
population etc.
Salient features:
 The account will open in PKR currency as current account only.
 This account shall be fed through Home Remittances from abroad only.
 Only “Individuals” can open this account in Single or Joint capacity.
 There is no requirement of initial deposit and minimum balance.
 No account maintaining charges
 No commercial remittances shall be deposited in the account.
 No local credit shall be allowed in the account.
 No outward remittance will be allowed.
 Maximum credit balance of up to PKR 2,000,000.
 Cash withdrawal up to PKR 50,000 per day.
 Fund transfer from Asaan Remittance Current Account to any other account up to PKR
50,000 per day.
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 Account can be opened with minimum formalities and one pager account opening form.
SAVING DEPOSITS
 PLS Saving Bank Account
 BOP Behtareen Munafa Account
 Corporate Premium Account
 BOP FCY Supreme Saving Account
 BOP Young Lions Saving Account
 BOP PLS Direct Pension Credit Account
 BOP Asaan Saving Account
 BOP PLS LG Account
 Kissan Dost Saving Account
 BOP FCY Saving Account

TERM DEPOSITS
 BOP Bonus Munafa Term Deposit
 PLS Term Deposit
 Foreign Currency Term Deposit
BOP ROSHAN DIGITAL ACCOUNT
Roshan Digital Account is a major initiative of State Bank of Pakistan which provides
banking solutions for millions of Non-Resident Pakistanis. BOP offers Roshan Digital
Account for Non-Resident and Resident Pakistanis (with declared assets held abroad) to
invest in Pakistan with ease. Customer can open either Foreign Currency USD/
GBP/EUR or Pak Rupee denominated account, under Conventional Banking and Islamic
Banking, with exciting investment opportunities i.e., Naya Pakistan Certificates/ Islamic
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Naya Pakistan Certificate issued by government and Term deposit products/Riba Free
Certificates of the Bank.
BOP KHAAS BANKING
 BOP Khaas Current Account
 BOP Khaas Saving Account

BOP NAAZ ACCOUNT
 BOP Naaz Current Account
 BOP Naaz Saving Account

RETAIL FINANCE
 Car Lease – CarGar
 Residual Value – Auto Financing
 Used Car – Auto Financing
 Apna Ghar House Financing
 Apna Ghar Low-Cost Housing Finance
 Personal Loan
 Consumer Durables
 BOP Solar
 Caravan Fleet Financing
 BOP Smart Advance Cash
 Apna Rozgar Scheme
 Women on Wheels
AGRI FINANCE
 Kissan Dost Production Loan

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 BOP Tractor Lease
 Kissan Dost Lease Finance Facility
 Kissan Dost Cold Storage Finance Facility
 Kissan Dost Livestock Development Scheme
 BOP Agri Vehicle Leasing
 Financing Facility for Storage of Agriculture Produce (FFSAP)
 BOP Agri Vehicle Loan Bilingual Brochure
 BOP FFSAP Bilingual Brochure
 BOP Non-Farm Loan Bilingual Brochure
 BOP Production Load Bilingual Brochure
 BOP Tractor Load Bilingual Brochure
 EWRF Bilingual Brochure
SME PRODUCTS
 BOP Apni Dokan
 BOP Fori Sahulat
 BOP Kamyab Karobar
 BOP Shamsi Tawanai
 BOP Sonay pe Sohaga
 BOP Supply Chain Finance
GOVERNMENT INITIATIVES
Punjab Rozgar Scheme
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PRODUCTS OFFERED BY CORPORATE BANKING
 Project Finance
 Debt Syndications and Consortium Financing
 Corporate Finance
 Long Term/Demand Finance
 Working Capital Finance
 Letter of Credit, Contracts and Export collection services
 FE Loans, Pre and Post Shipment Export Financing
 Import Financing • Bills Discounting • Letter of Guarantees
 Cash Management Services and etc.
 Housing & Construction Finance
 Advisory Services
 Hospital Finance
 Employee Banking
DIGITAL BANKING & CASH MANAGEMENT
DIGITAL BANKING INITIATIVES
 E-Banking
 Digital Account Onboarding Portal
 Security of Digital Payments
 BOP Sadqah Jariyah
 WhatsApp Banking
 Mobile Banking
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 Debit Cards
 Credit Cards
 BOP Lahore Qalandar Debit Card
 BOP Contact Center
CASH MANAGEMENT INITIATIVES
Some of the key initiatives are as under:
 Khidmat Card Program for poor & marginalized communities
 Disbursement of Scholarships under Punjab Education Endowment Fund
 E-Stamping
 E-Challans
 PESSI
 Customized Collection / Receivable Management
 Payable Management
 Over the Counter Payment Solutions
 Hybrid Payment Solution
 BOP-BIZ – Corporate Portal
TAQWA ISLAMIC BANKING
LIABILITY PRODUCTS
 Basic Banking Accounts
 Current Accounts
 Profit and Loss Sharing Accounts
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 Taqwa Rahat Corporate Account
 Taqwa Rahat Account
 Riba Free Certificates (Term Deposits)
 Taqwa Asaan Current Account
 Taqwa Asaan Saving Account
 Taqwa Business Account
 Taqwa Meherbaan Certificate
 Taqwa Direct Pension Credit Account
 Taqwa Asaan Remittance Account
 Taqwa Committee Account
 Taqwa Kissan Dost Saving Account
 Sadqa Jaari’ah Certificates - SJCs
ASSET PRODUCTS
 Murabahah Financing
 Diminishing Musharakah Financing
 Kafalah (Bank Guarantees)
 Ijarah
 Istisna
 Running Musharakah
 Taqwa Tijarah Finance
 TAQWA SALAM FINANCE
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DEPARTMENTS IN 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 an entire banking system is based on it. The
borrowed capital of the bank is much greater then, 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 are 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.
NATURE OF DEPOSIT
➢ Current or demand Deposits
➢ Saving Deposit
➢ Short Notice Term Deposit
➢ Call Deposits
➢ Fixed or Term Deposits
CURRENT DEPOSIT
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Current deposits are 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.
 PLS Saving Account
 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.
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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).
ACCOUNT OPENING
Account opening is the first step towards establishing a relationship between the
customer and the bank. The Bank of Punjab is offering basically two types of account:
 Current Deposit Account

 Profit & loss sharing account
The necessary condition for a customer, who wants to open an account with the bank, 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
 SNTD
 TDR
 Foreign Currency Deposit
ACCOUNT OPENING PROCEDURE
The general banking department performs various functions among them the first and
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most important function is Account Opening. The bank reserves the right to open any
account, which in its opinion is suitable as a customer. The process of opening an
account is very simple and anybody that would like to open his account could do it
easily without any difficulty.
The person would like to open his account is required to meet with the manager or
second officer, who will give him an application form specifically used for account
opening. Along with the form a card for specimen signature is also supplied to the
customer. Manager has every right not to accept this contract if he is not satisfied with
the details provided by the customer. But in case the contract is acceptable to both, the
next step is official account opening.
This begins with the Account Opening Register which can be thought as a customer’s
master file. The manager records the necessary details into this register5 and allots an
“Account Number” from this account opening register. This register is maintained for
each type of accounts and the account numbers are allotted serially. Checking officer is
responsible to tally the manual data with computerized account opening file. For fix
deposit only the application form is needed, which is prepared manually, because most
of the procedures of fix deposit is done manually. Signature specimen card contains
three signatures of the applicant, applicant account number, account type, branch code,
and title of account. It will be attached with the account opening form. Banker uses this
card when he receives the cheque, he compares signature on the cheque with the
Specimen card, for avoiding the frauds.
CLEARING DEPARTMENT
This department receives the cheque and other negotiable instruments drawn on local
branches of other banks. State bank of Pakistan has clearing house, in which cheque, and
other negotiable instruments are brought by each local bank representatives and the
mutual claims of each bank on other and offset and a settlement is made by the payment
of difference. Clearing system is help full for both the customer and saving currency,
time and labor.
Investments which are collected
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 Cheques
 Demand Drafts
 Telegraphic transfers
 Mail Transfers
 Pay Order
CLEARING
Any instruments which drawn on BOP branches and other banks in same city that’s
instruments are called clearing. A clearing and date stamp is a fixed on these instruments
these are two types of clearing!
 Outward Clearing
 Inward Clearing
Inward clearing means the cheque drawn on BOP and outward clearing means the
Cheques drawn on others.
OUTWARD CLEARING
The instrument collected or stored bank wise and a schedule is prepared separately for
each bank mentioning the total number of instruments and the amount of the instruments.
Then these are recorded in a register called “OUTWARD CLEARING REGISTER” then
a main schedule is prepared showing the total number of cheque and their aggregate
amount being presented in the clearing.
The cheque/instruments are handed over the clearing branch. Central clearing branch
issue CREDIT ADVICE to the branch for passing credit to its customer immediately.
The branch on receiving credit advice debits the clearing account and credit the
respective customer accounts.
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INWARD CLEARING
On receiving cheque/instruments from central clearing branch, the in charge checks the
number and amount of cheque received in clearing must tally with the main schedule
received from central clearing branch.
These cheque/instruments are entered in “INWARD CLEARING REGISTER” for the
cheque/instrument passed in clearing is a credit advice for the aggregate amount of
cheque passed in clearing is prepared, drawn on central clearing branch.
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.
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
 Now we discuss all these in detail:
DEMAND DRAFT (DD):
Demand draft is a written order given by the one branch of a bank on behalf of customer
to another branch of the same bank to a certain amount to the certain person.
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PROCEDURE
1. A draft voucher is filled which contains the following information
 Name of the parties involved
 Date
 Amount to be sent
 Account number (if DD is crossed)
2. A credit voucher is filled in order to get the excise duty and exchange commission.
3. The sender deposits the total amount of the two vouchers i.e. the debit and credit
vouchers.
4. Then the cashier sends the cash receipt voucher to the accounts department and the
account records the amount paid in his cash scroll.
5. Accountant gives the DD leaf along with the DD voucher to his assistant who records the
sender’s name, amount and receiver’s name. After writing all the information in the DD
register, he gives it to the officer along with the DD for authentications.
6. After authentication the DD is handed over to the sender and bank sends the advice to
the concerned branch. So, when the party presents the DD in the concerned branch its
payment could be made.
PARTIES INVOLVED
The following parties are involved in demand draft;
1) Purchaser or Sender
The purchaser is the person who sends the money to a particular person payable at a
certain branch.
2) Issuing or Drawing Branch
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The branch from where the demand draft is issued to another branch of the same
bank.
3) Drawer Branch
Branch in which the draft has drawn and called upon to pay the amount.
4) Payee
The person who is entitled to receive the amount after presenting the demand draft in the
drawer branch.
MAIL TRANSFER
It is the transfer of money from one branch to another branch of the same bank through
mail service. In mail transfer there is no need of advice as the amount is directly credited
to the receiver’s account.
PROCEDURE
1) First a voucher is filled in which the sender writes the amount to be sent, name, account
number of the receiving person with the branch name and date.
2) A credit voucher is filled in order to deduct exchange, postage charges according to the
amount of the mail transfer.
3) The sender deposits the total amount in the cash department.
4) The cash officer gives the vouchers to the officer after affixing received cash stamp and
writing the amount in red ink.
5) Then the officer writes the amount paid in the cash scroll and gives the MT to his
assistant.
6) MT leaf is filled according to the information provided in credit voucher. He also writes
the same information in the MT register. Then he gives the MT leaf and MT register to
the officer for authentication.
ACCOUNT DEPARTMENT
Account department is the backbone of a bank. It plays a vital in performing different

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functions of a bank. The account department of is computerized as well as manual.

Accounting books of different departments are maintained under this department and
with the help of these, accountant prepare the monthly quarterly, semiannually and
yearly financial statement and order statement of the whole bank. All the transaction
taking place is recorded daily in the books of accounts and in computerized ledgers.
For every transaction there is Voucher prepared and through these vouchers’ contra
entries are passed under different head. Good working of accounts mainly depends on
the voucher system. Accounts department is responsible for proper handling and
maintenance of vouchers of different department
.
MANUAL FUNCTIONS OF ACCOUNTS DEPARTMENT
Accountant prepares vouchers for all daily activities of different departments. Checking
officer checks and tallies these vouchers with their daily transactions and posts their
entries under proper heads.
TYPES OF VOUCHERS
 Debit Voucher
 Credit Voucher
These two types of vouchers are again classified under following types: -
 Cash voucher
 Transfer voucher
 Clearing voucher
All the daily transaction in cash, transfer and clearing is done through these vouchers. A
sheet is prepared on which all the vouchers passed during one day are consolidated and
summarized. This sheet is called supplementary sheet. There are two types of
supplementary sheet.
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 Daily paid voucher sheet
 Daily receipt voucher sheet
Paid sheet is used for all debit vouchers and receipt sheet is used for all credit
vouchers.
CASH BOOK
Cash book is prepared daily to keep the record of daily paid vouchers. Cash book
contains the opening balance and the closing balance of a working day. Before writing
and balance the cash book firstly there is needed to properly arrange all the vouchers of
that day.
MAINTAINING & UPDATING LEDGERS
One of the functions of accounts department is to maintain and update the term deposit
ledgers and books manually. Term deposit receipt or TDR ledger is updated after every
month for estimating profit on customer’s accounts. Accountant prepares different ledger
for all schemes of term deposit. With the help of TDR ledger accountant prepares
“provisional ledger”. From this ledger accountant calculate the monthly product of each
account and estimate the profit for a half-year. The semiannual profit on each account
will be the expenses of branch.
COMPUTERIZED FUNCTIONS OF ACCOUNTS DEPARTMENT
Most of the daily working is done through ledgers. In BOP all the daily transaction in
deposit, cash, clearing, transfer, remittance and advance are performed these daily
ledgers; accounts department receives the following output of general ledger.
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 Daily general ledger expense
 Daily general ledger income
 Daily general ledger assets
 Daily general ledger liability
 Daily general ledger circle expense
 Daily general ledger audit expense
The formats of all these ledgers are same. They contain the following head account
no. description, previous balance. Codes are assigned to all these items.
Income will be credited in the branch account and expenses will be debited I the
branch at the month end.
All the expenses of circle, regional, audit, inspection office is debited in the head office
account, because it is the responsibility of the head office to bear the expenses of its
offices. For all the heads of general ledger there is closing balance and opening balance.
These ledgers are helpful in preparing the daily, monthly, semiannually and
yearly statements. Some of these statements are prepare for the purpose of record
keeping of branches and some are prepared to send to the circle office, head office
and state bank of Pakistan.
Some of these statements are
 Statement of provisional income
 Statement of provisional expense
 Statement of head office account
 Summary of income and expense
 Statement of profit and loss on PLS account
 Statement of profit and loss PLS 365 accounts
 Balance confirmation report

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 Statement of affairs
BILLS DEPARTMENT
This department deals in bills for collection for all kinks such as cheque, draft, and pay
orders, call deposits etc. with outstation branches of BOP or with other banks. It provides
service to their customer to get payment from the nearer bank at nominal charges. The
four main heads of bill department are as:
 Outward Bill for Collection (OBC)
 Inward Bills for Collection (IBC)
 Outward Documentary Bills for Collection (ODBFC)
 Inward Documentary Bills for Collection (IDBFC)
ADVANCES/CREDIT DEPARTMENT
It is the loan function, which produces the major person of bank’s income, and as such it
is the major areas of professional banker’s concern and attention.
PRINCIPLES WHILE ADVANCING
Basically, there are five principles that must be duly observed while advancing money to
borrowers.
 Safety
 Liquidity
 Disposal
 Remuneration
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 Suitability
FORMS OF LENDING
Many there are two types of advances:
 Short-term (maturity within one year)
 Long term (maturity with the period of more than one year) However they are further
classified as:
 Running Finance
 Demand Finance
 Cash Finance
 Letter of Guarantee
RUNNING FINANCE
This form of finance was previously known as “overdraft”. When a customer requires
the temporary accommodation, his bank allows withdrawal his account in excess of
credit balance, which the customer has in its account, a running finance occurs. The
accommodation is thus allowed collateral security. When it is against collateral
securities, it is called a “Secured Running Finance” and when the customer cannot offer
any collateral security except his personal security, accommodation is called a “Clean
Running Finance.” The customer is in advantageous position in running finance because
he has to pay the mark-up only the balance outstanding against him on daily product
basis.
DEMAND FINANCE
This is common form of financing to commercial and industrial concerns and is mad
available either against pledge or hypothecation of goods produce or merchandise. In
Demand Finance the party is financed up to a certain limit either at once or as and when
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required. The party due to facility of paying mark-up only on the amount it actually
utilizes prefers this form of financing
.
 Ordinary Shares
 Preferred shares
It can be
 Quoted or Unquoted
 Registered
 Bearer
 Inscribed
ADVANCES AGAINST IMMOVABLE PROPERTY
A mortgage is the transfer of and interest in specific immovable property for the purpose
of securing the payment of the money, advanced or to be advanced. By way of loan,
and existing debts or the performances of the engagement this may rise the pecuniary
liability.
The transfer is called the ‘mortgager’ and the transferee the ‘mortgagee’ the principal
money and interest of which payment is secured for the time being and instrument by
which the transfer is affected, is called the letter of the mortgage deed.
Availability of adequate flows of credit for industry and agriculture are a sine qua non
for the growth and development of an economy. This acquires added importance
when agriculture is the mainstay of the economy as also the sector where the bulk of the
poor are concentrated. Growth and productivity in Pakistan's agriculture has slowed
down in recent years and is, therefore, of serious concern given its importance for the
economic prosperity of the country. Apart from various other weaknesses in the
infrastructural support of the agricultural sector, inadequacy and lack of efficacy of
credit, flows to support agriculture related activities has been a major constraining factor.
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Agriculture is the largest sector of the economy. It contributes 25 percent to GDP,

provides raw materials to 80 percent of industry and employment to over 50 percent of
the population. This is a sector that has the shortest gestation period for investments
and, therefore, a remarkable capacity to bring about a turnaround in the economy. This
important sector in Pakistan is suffering from a number of maladies and is consequently
witnessing stagnation in productivity.
Due to policy and administrative exigencies, the savings in the agriculture sector remain
low and, therefore, the sector has perpetually remained capital starved. The pricing of
input and output in agriculture over the years has forced the majority of farmers in
Pakistan to plough back their incomes into agriculture and non-institutional credit, and
has more often than not served to sap their potential earnings.
Needless to say, that shortage of savings and lack of availability of capital is one of the
major reasons for poverty in the country. The agricultural and rural sectors in Pakistan in
general and in Punjab in particular are, therefore, suffering from severe under-
development.
FINANCIAL ANALYSIS
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To analyze the financial position of BOP, different tools are used, which includes Ratio
Analysis, Common size Analysis of the last five years. Importance of Financial Analysis
IMPORTANCE OF FINANCIAL ANALYSIS
A financial analysis will not only help you understand your company's financial
condition, helping you determine its creditworthiness, profitability and ability to generate
wealth, but will also provide you with a more in-depth look at how well it operates
internally. This analysis is therefore a valuable health check-up that will help you better
understand your company's needs. It can provide you with a more comprehensive
overview of your company's tax situation and help you optimize its management, which
could ultimately lead to greater profits and increased financial security.
Financial analysis involves the use of various financial statements. These statements do
several things. First the balance sheet and the second is income statement. The balance
sheet summarizes the assets, liabilities, and owner’s equity of a business at a point in
time, while the income statement summarizes revenues and expenses of a firm over a
particular period of time.
This method is helpful in asset management, liquidity, debt management, market value,
the financial performance of the various departments, and profitability of the business
parts.
The three most important are the balance sheet, income statement, and statement of cash
flows. Balance sheets communicate a company's worth and list assets, liabilities, and
equity for a reporting period. Managers can use this data to understand their business's
financial position.
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CURRENT RATIO
The current ratio is a liquidity ratio that is used to calculate a company's ability to meet
its short-term debt and obligations, or those due in a single year, using assets available
on its balance sheet. It is also known as working capital ratio. A current ratio of one or
more is preferred by investors.
A current ratio less than one is an indicator that the company may not be able to service
its short-term debt. On the other hand, a current ratio greater than one can also be a sign
that the company has too much unsold inventory or cash on hand.
Current ratio = current asset/current liabilities
2022 2021 2020 2019 2018

1.11 1.12 1.08 1.08 1.08
current ratio
1.12
1.11
1.08 1.08 1.08
2022 2021 2020 2019 2018
Interpretation
The current ratio is a liquidity ratio that is used to calculate a company's ability to meet
its short-term debt and obligations, or those due in a single year, using assets available
on its balance sheet. A current ratio less than one is an indicator that the company may
not be able to service its short-term debt. On the other hand, a current ratio greater than
one can also be a sign that the company has too much unsold inventory or cash on hand.
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If we analyze the past 5 years current ratio, bank has ratio more than 1 which indicates
that BOP has too much cash to meet short term obligations.
EFFICIENCY RATIO
An efficiency ratio is a metric that enables business leaders to measure how well a
company uses its resources. Managers may use these ratios to gain insights into where
they can improve operational, asset management and other business practices.
Efficiency ratio = expense/revenue
2022 2021 2020 2019 2018

59.58% 53.04% 57.81% 51.22% 49.05%
efficiency ratio
59.58% 57.81%
53.04% 51.22%
49.05%
2022 2021 2020 2019 2018
Interpretation
Ratio measures how effectively a company collects and spends its money and uses
assets. An efficiency ratio of 50% or under is considered optimal. If the efficiency ratio
increases, it means a bank's expenses are increasing or its revenues are decreasing.
Efficiency ratio of the BOP of last 5 years shows that ratio is increasing and in 2022 its
value is highest as compared to previous 5 years.
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PROFIT BEFORE TAX TO TOTAL INCOME
Profit before tax is a measure that looks at a company's profits before the company has to
pay corporate income tax. It essentially is all of a company's profits without the
consideration of any taxes. Profit before tax can be found on the income statement as
operating profit minus interest.
Operating income less operating cost (profit before tax).
2022 2021 2020 2019 2018

13.49% 22.54% 13.94% 17.37% 26.03%
profit before tax ratio
26.03%
22.54%
17.37%
13.49% 13.94%
2022 2021 2020 2019 2018
Interpretation
This ratio tells what percent of total income is earned before paying all the taxes. BOP
has a high value of profit before tax to total income and they are decreasing after 2018
because of increase in admin expenses and righting off the bad debts.
The main reasons for reduction in the profitability were additional provision against NPL
due to the elimination of benefit of FSV and downturn in consumer and individual
banking while in 2021 this ratio improves as compared to previous 2 years while again in
2022 it decreased.
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RETURN ON TOTAL ASSET
Return on assets (ROA) ratio is a metric used to evaluate how efficiently a company is
able to generate profit with the assets it has available. It measures the percentage of how
much income a company's net operating profit, after taxes, has earned annually on
average over three years from all the business operations and investments.
ROA shows what happened with a firm's historically acquired resources. It gives an idea
as to how efficient the management is at using its assets to generate earnings. Expressed
as a percentage, a higher ROA indicates a more efficient use of company resources.
Return on assets= Profit after tax / Total Assets
2022 2021 2020 2019 2018

0.81% 1.09% 0.71% 1.04% 1.10%
return on asset
1.09% 1.10%
1.04%
0.81%
0.71%
2022 2021 2020 2019 2018
Interpretation
This ratio gives an idea of returning net profit generated by the bank in comparison with
assets. It is an indicator of how profitable a company is relative to its total assets. ROA
gives an idea as to how efficient management is at using its assets to generate earnings.
By seeing the trend of this ratio, we can say that in 2018, 2019 and 2021 bank is earning
more revenue.
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RETURN ON EQUITY
Return On Equity, or ROE, is a measurement of financial performance arrived at by

dividing net income by shareholder equity.
Because shareholder equity is equal to a business's assets minus its debts, ROE can also
be considered the return on net assets.
ROE, therefore, is sometimes used to estimate how efficiently a company's management

is able to generate profit with the assets they have available.
Return on equity = net income/shareholder’s equity
2022 2021 2020 2019 2018

17.53% 24.27% 15.58% 21.77% 24.68%
return on equity
24.27% 24.68%
21.77%
17.53%
15.85%
2022 2021 2020 2019 2018
Interpretations
Return on equity measures a corporation's profitability by revealing how much profit a

company generates with the money shareholders have invested. In the above calculation
the ROE is good in 2018 & 2021 as compared to other years of the past 5 years.
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PRICE EARNING RATIO
P/E ratio, or the Price-to-Earnings ratio, is a metric measuring the price of

a stock relative to its earnings per share (EPS).
The P/E ratio is derived by taking the price of a share over its estimated earnings.
As such, a higher value generally indicates a greater cost for a lower return, and a lower
value generally indicates a greater return for a lower cost.
Price Earnings Ratio= Market price of a share/ EPS
From this ratio it is analyzed what % of EPS is the part of MPS. What percent earned
from a share equivalent to the worth of 1 RS MPS by the bank or a firm.
2022 2021 2020 2019 2018

1.72 2.04 3.74 3.94 3.92
times times times times times
price earning ratio
3.92
3.74
3.49
2.04
1.72
2022 2021 2020 2019 2018
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Interpretation;
A valuation ratio of a company's current share price compared to its per-share earnings.
The price earnings ratio of BOP was good in 2018 to 2020 but it shows decreasing trend
from 2021 to onwards.
EARNING PER SHARE
Earnings per share (EPS) is calculated as a company's profit divided by the outstanding
shares of its common stock. The resulting number serves as an indicator of a company's
profitability. It is common for a company to report EPS that is adjusted for extraordinary
items and potential share dilution.
EPS = Net Income/ total shares
Through this ratio it can be analyzed what percent of 1RS share is earned.
2022 2021 2020 2019 2018

364 418 263 312 286
earnings per share

418
364
312
286
263
2022 2021 2020 2019 2018
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Interpretation
Earnings per share serve as an indicator of a company's profitability. By analyzing the

earnings per share of the past 5 years we can say that in 2020 EPS decreased due to
corona virus but in 2021 its EPS increased as compared to previous years while in 2022
it again slightly decreased.
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VERTICAL ANALYSIS
STATEMENT OF FINANCIAL POSITION
2022 2021 2019 2018 2017
Assets
Cash and balances with treasury 5% 6% 6% 6% 6%

banks
Balances with other banks 0% 1% 0% 1% 1%
Lending’s to financial institutions 5% 3% 1% 0% 4%
Investments - net 43% 44% 52% 42% 29%
Advances - net 40% 40% 36% 44% 53%
Fixed assets 2% 2% 1% 2% 1%
Intangible assets 0% 0% 0% 0% 0%
Deferred tax assets - net 1% 1% 1% 1% 1%
Other assets - net 4% 3% 2% 4% 4%
LIABILITIES
Bills payable 0% 1% 0% 0% 1%
Borrowings 5% 6% 14% 9% 6%
Deposits and other accounts 83% 84% 76% 80% 83%
Subordinated debts 1% 1% 1% 1% 1%
Other liabilities 6% 4% 4% 5% 4%
NET ASSETS 4% 5% 5% 5% 5%
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HORIZONTAL ANALYSIS
2022 2021 2019 2018 2017
Assets
Cash and balances with treasury 3% 3% 30% 23% 3%

banks
Balances with other banks -45% 264% -77% 78% -5%
Lending’s to financial institutions 125% 93% 296% -85% 13%
Investments - net 20% -6% 57% 72% -13%
Advances - net 22% 24% 2% 0% 29%
Fixed assets 53% 34% -3% 73% 11%
Intangible assets 61% 60% -13% -11% 42%
Deferred tax assets - net 6% 76% 18% -18% -26%
Other assets - net 69% 38% -25% 23% 2%
LIABILITIES
Bills payable -37% 143% 22% -4% 6%
Borrowings 13% -54% 101% 84% 7%
Deposits and other accounts 22% 20% 21% 16% 7%
Subordinated debts 121% 15% -23% 0% 96%
Other liabilities 70% 18% 1% 56% 8%
NET ASSETS 19% 5% 12% 24% 27%
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TRAINING PROGRAM
DEPARTMENTS VISITED BY INTERNEE
A. ACCOUNT DEPARTMENT
B. REMITTENCE DEPARTMENT
C. GENERAL BANKING OPERATIONS
D. CLEARING DEPARTMENT
E. CREDIT DEPARTMENT
DEPARTMENT TIME TYPE OF ATTENDED OBSERVATION &

NAME SPENT LEARNING OFFICER COMMENTS
(WEEKS)
ACCOUNT 02 WEEKS Method of Mr. Ahmad How to fill account
DEPARTMENT opening Shiraz Saleem opening form and
& GENERAL account Cash Officer requirements of
BANKING Entry of debit, account opening.
OPERATIONS credit vouchers Updating of daily
in the system. routine working with
2. Account respect to
Opening 3. posting/journalizing
Customer Care the Dr/Cr entries in
4. On Line the system. A
Banking wonderful job which
updates the daily
activities/transactions
of their customers
and other allied
concerns of the unit
Page | 72
in the relevant
automation.
REMITTENCE 01 WEEKS Entry of Mr. Qasir Provision of services
DEPARTMENT remittance Naeem for remittance of
instruments in Operation money. A sensitive
the system & Manager job which demands
preparation of extra care to safe
physical guard the
instruments Institution’s financial
interest apart from
who availed the
services from the
Bank.
CLEARING 01 WEEKS 1.Types of Mr. Akram Perfectly Lodgement
DEPARTMENT clearing and on the realization
2. Lodgment of of the amount by the
clearing other bank credited
3. the customer’s A/C.
Representation It’s a tough job if the
of Dishonored banker makes a
cheques after mistake in the
the removal of Lodgement of
past objection Cheques and Cheque
dishonor then he will
be liable for this.
CREIDT 02 WEEKS Understanding Waheed A good source of
DEPTARTMENT of Ahmad Credit earning for the bank
documentation Officer in conformity with
of Credit the Institutional
Proposals Credit Policy.
Glance at Requires proper
Page | 73
Financial expertise and

Analysis of dedication to safe
various SMEs guard the bank’s
money lend to the
public against
security of
paper/other collateral
ACCOUNT OPENING DEPARTMENT
1ST & 2ND WEEK
I spend my 1st & 2nd week of internship in account department. My supervisor

gave information about basic requirement of opening account in bank. I knew
procedure and important documents required for opening account. I also help the
customer in form filing procedure and receive documents from customers and
issue cheque books to customers. The information I learned in this department is
as:
Types of Accounts:
Basically, there are two types of accounts
 Term/Fixed Deposit Account
 Demand Deposit Account
OPENING AN ACCOUNT
The first requirement for opening an account is to fill the account opening form.
First of all, the customer will state the address of branch where he is going to
open his account. Then he will state the title of account in which he will state his
name. Then he will have to select that which account he is going to open whether
he is going to open.
 Individual account
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 Joint, sole proprietorship
 Public Ltd.
 Private Ltd account
 Partnership
 Trust account
 Society/ club/ association
 Others
Then he will state his type of account which he is going to
open
 Saving, current
 Term deposit
 Foreign currency account
Then he will state the suffix that is the number of the PKR currency.
AOF includes such clauses as, Name, father name, mother’s maiden name,
marital status, date of birth, Gender, NTN No that is optional, occupation, name
of employer, job title, address of employer, country of residence, nationality,
CNIC No, current residential address, permanent address, Email Id, Fax No, Tel
No, Mobile No etc.
Specimen Signature Card
Customer is required to fill two specimen signature cards. Each specimen

signature card has four blocks. Customer will give his signatures two times
on each card.
TYPES OF ACCOUNT
 Individual account
1. Salaried person account:
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Branches may be required to open accounts for employees of their corporate

customers as employees of other organizations maintaining account relationships
with BOP.
In each case, branches shall make reasonable efforts to confirm the employment
details of an applicant. Single account is an account that is operated by a single
person. To open an account following types of documents are required.
o CNIC
o Salary Slip
2. Student Account
This is the account being operated by the student.
Documents required are
o Fresh copy of latest ID Card of institute or letter from an institute
3. Minor Account
This is the account operated by the person of age less than 18 years. This account
remains active till the person is minor. When he reaches the age of maturity, his
account will automatically be terminated.
4. Joint accounts
These are the accounts of two or more parties who are not partners, executors,
administrator’s and trustees. Common joint account is husband and wife joint
account. Parties must clearly mention the signing authority to operate the account.
5. Sole proprietorship account
This is the account of a businessman who is the only and the single owner of the
business. Account holder is solely responsible for profit and losses.
Documents required for this account are:
o CNIC of sole proprietor
o Sole proprietors’ declaration on personal capacity
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I perform the following functions in this department
ISSUANCCE OF CHEQUE BOOK
We request for the issuance of cheque book from the customer in person or
through customer’s representatives. For new accounts cheque book requests are to
be obtained for. Record date on requisition slip.
 Verify the customer’s signature and sign as evidence on CRS.
 Check and ensure that there is no restriction on account that prevents the
issuance of cheque book.
Supervision of system
o Verify the details from the original source and the system
o Supervise the details on the system
o Keep the requisition slip on the pending folder up to the delivery of cheque
book to the customer by BSS (banking services supervisor)
Receive cheque book
o Receive cheque book along with the “cheque serial range report” from CBPC in
sealed envelop
o Count each and every leaf of the cheque book and ensure that none is missing
and the serial number is in order and verify the details from the cheque range
report with the cheque requisition. Any discrepancy must be immediately
reported to CBPC with the copy to head of centralized operations
o Cheque range report with the requisition slip will be
filed at branch end in order
o Copy of cheque range will also be used as cheque book
delivery register.
Delivery of cheque book to customer
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o Customer signature must be verified on acknowledgement slip and on range

report against customer detail before delivery of cheque book
Deliver the cheque book to customer after obtaining their signatures on cheque
book record as acknowledgement of receipt
o Update cheque boom delivery record i.e., date of delivery to the customers.
o Officer delivery the cheque books sign as evidence of delivery
3RD WEEK
I spent second week in remittance department. Operations officer gave me some

knowledge about these things. Purpose of these products is to ensure safe
payment. It is in favor of payee only. There are less chances of its miss use
because these can be deposited only in payee account. in case of loss, bank will be
responsible.
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.
TYPES OF REMITTANCE
The Bank of Punjab deals with the following type of remittances
 Demand Draft (DD)
 Mail Transfer (MT)
 Telegraphic Transfer (TT)
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DEMAND DRAFTS (DD)
DD is a written order given by the branch of the bank on behalf of the customer to
another branch of the same bank to pay the certain amount to the customer. DD
are issued for the particular place other than place of issuance. A draft is a Cheque
drawn by a bank on its own branch or any other branch of another bank at a
different place requesting it to pay on demand a specified amount of money,
which is already received, to the person named on it. DD is of following two
types:
DD payable
DD Paid Suspense a/c
In the first type as advice reaches for payment the immediately pay to the
customer while in later as DD presented by the customer, it is paid and the
suspense account is debited.
Documentation:
A printed application form is provided for filling in completely and signing by the
applicant. After depositing an amount of draft and commission of the bank, duly
completed and signed by two authorized officers, then it is handed over the
applicant and credit order is dispatched to drawer branch. Following are the pre-
requisites for the processing of DD:
Bank Serial No
No. of Rs.60 Postage charges
0.02% Withholding tax
In 2nd day of 4th week, I learned about the other clearing instrument called as pay
order in detail and also get knowhow about CDR.
PAY ORDER
For this kind of remittance, the payer must have the account in the issuing bank.
Pay order are more liquid as compared to cheques because cheques may be
dishonored while PO can’t be. It is written order issued by the bank drawn and
Page | 79
payable on itself. It is used for local transfer of money from one person to another
person. The public also uses it for depositing money with Government or Semi
Government department.
Documentation:
The party who requires a pay order will get a printed application from the bank.
He will fill it and deposits the amount and commission. The bank charges are
same as on demand draft.
Bank Serial No.

No. of PO
Central No.
0.02% withholding tax
In case DD and PO gets dormant after 6 months of issue. Dormant account
needed to revalidate. Issuer should go to drawer branch and request for
revalidation, bank changes the date and authorized signatory signs the document
again. Credit advice is generated having information about company on which it
is generated in the favor of which company. One copy is sent to drawee branch
and the other is sent to head office.
CALL DEPOSIT RECEIPT:
Bank has no advantage of issuing DD and PO. CDR is issued for Govt. contracts.
CDR can be issued only to account holder
This day I learned about other clearing instruments known as Bills collection.
BILL COLLECTIONS
Bills department performs the following functions.
Inward Bills for Collection (IBC)
Outwards Bill for Collection (OBC)
Inward bills for collection (IBC)
Page | 80
These are bills or cheques etc., which are collected locally. They are received
from outstation branches banks and parties. If intercity clearing services of NIFT
are not available in the area in which branch of our bank is located. Cheques and
DDs are sent through IBC & OBC.
Outwards bill for collection (OBC)
These are bills or cheques etc., which are sent intercity for collection.
Clean bills:
These are negotiable instruments, drawn on outstation branches, bills sent for
collection on behalf of the customers i.e. cheques, drafts or treasury bills etc.
Documentary bills:
These are bills accompanied by documents such as R.R.T.R Bills of landing etc.
having title to goods, collected by the bankers on behalf of their customers.
4th day I learned about clearing, its types, its documents and stamps marked in
detail.
4TH WEEK
CLEARING
During my internship in BOP, I spend my 4 th week in clearing department. I also

learned a lot in this week about clearing procedure and basic terms. In old times
one representative of each bank had to go to SBP every day for record of clearing.
This was hard task to perform. To avoid this time taking task, SBP made contract
with OCS and made an institution called “NIFT”.
Representative of “NIFT” collects outwards in the evening and provide inwards in

morning time.
Types of clearing:
Inward clearing:
Checks of Al-Baraka bank if submitted in other banks, those banks sends the
checks to Al-Baraka bank for clearing, this is called inward clearing.
Page | 81
Outward clearing:
Cheques of other banks if submitted by customer in Al-Baraka bank, the bank

sends cheques to other banks for clearing, this is called outward clearing. It is
drawn by our bank on other.
Local clearing:
Within city clearing is named as local clearing.
Same day clearing:
Cheques having amount more than Rs. 100,000/- can be cleared in same day
clearing. Only specific branches are members of same day clearing. If cheques are
objectionable, they can be returned back. In this case Standard hours for NIFT
service is 24 hours
Intercity clearing:
Clearing between the cities in which NIFT provides its services i.e. Karachi,
Lahore, Peshawar, Gujranwala etc. if cheque is cleared through intercity clearing,
there will be no deduction in the amount of cheque. Standard hours are 48.
If SBP does not play its role in clearing then NBP is authorized to perform this
function.
Instruments of clearing:
cheque
Pay order
Demand draft
Challan form
Stamps on clearing cheque:
Stamp of crossing
Stamp of clearing
Page | 82
5th day I was absent while 6 th day I spent in clearing my ambiguities and revising
the work done in this department.
5TH & 6TH WEEK
CREDIT DEPARTMENT
I spent 5th & 6th week in credit & marketing department with credit officer of the
bank. Mr. Waheed Ahmed in this department I got the opportunity to learn about
how bank valuate their customers before lending them money.
1st day I spent in this department in learning its objective of learning and
existence and how a customer is captured.
CREDIT & MARKETING
Main objective of this department is to identify the parties who are interested to
get loan. After identifying them, bank investigates whether that party has the
capability and willingness to pay back the loan. I viewed the documents and
information needed for this purpose.
2nd day I learned the main objective of financial institutions and came to know
that it is very important for an economy.
Functions of financial institutions
Main functions of financial institutions are as follows:
To enlarge economy
To make flow of funds better
Financial system is a system which ensures the flow of funds between demanders
and suppliers of funds. It creates interface between supplier and demanders of
funds.
Categories to perform lending function
Credit marketing
Risk management
Page | 83
Credit administration
This day we properly started to learned the real working of this department.
CREDIT MARKETING:
Main objective of this category is the identification of clients in the market who
needs credit. The main role of this category is “to develop credit portfolio for
investment of money”.
RISK MANAGEMENT:
In this category risk attached to credit is managed. Main role of category is “risk
evaluation of proposal and if it matches to credit rules of SBP”.
CREDIT ADMINISTRATION:
Main role of this category is the “legal documentation of risk management”.
Analysis performed:
Economic analysis
Industry analysis
Firm analysis
If bank want to lend some amount to a specific firm, it needs to analyze the
economy at first, then it needs to analyze the whole industry. After that analysis of
the firm is conducted. In analyzing we do see two things; one is Risk and other is
Return.
Financial system hesitates to give credit to dying industry or sector like textile etc.
rising industry is food and livestock. It would be beneficial for banks to give
credit to this industry.
4th day I learned the main thing of this department and that was the process of
developing a relationship with a customer.
Develop relationship:
After identifying particular industry, we find ways to create relationship with that
industry. For developing relationship, the following tasks are performed like:
Page | 84
Detail study of credit rating
Identify the risk involved
Identify areas of risk
Components of credit:
Capacity of repayment
Willingness to pay
5th day I spent in discussing my various queries related with my previous work
done in this department and then learned about the 5c’s of credit analysis which
are kept in mind while granting money to any customer.
5 Cs of credit analysis:
Character
Personal attributes of any person are determined in this analysis.
Capacity
Capacity to repay is checked through this.
Cash flow
Operating cycle to generate cash flow is determined to find that whether person
has sufficient cash to repay.
Capital
Company’s equity against debt is determined to find that whether the firm’s
position
Conditions
Past, present and future condition of firm is determined.
Bank sometimes conduct PEST analysis to make decision of lending. PEST

means political, economic, social and technological analysis.
6th day I further discussed queries which were raised in my mind and learned
more which something was new for me.
Page | 85
CPRMG:
It stands for credit policy and risk management group. Function of risk
management is performed by this group in head office of bank. This group
implements the credit risk policy and manages risk. It tells the bank, to which
industry bank should advance credit.
It ensures the credit policy implementation
It manages deviations from policy
In credit policy deviation, CPRMG checks that whether the procedure adopted is
according to policy defined and if there is any deviation. It gives approval upon
certain terms and conditions.
Credit authorization department checks the compliance of terms and conditions

given by CPRMG relating to issues of credit and its approval.
6th C added to credit risk components is “collateral”, which is security against

credit. It is the latest in components.
SWOT ANALYSIS
SWOT analysis is an acronym that stands for strengths, weakness, opportunities,

and threats SWOT analysis is careful evaluation of an organization’s internal
strengths and weakness as well as its environment opportunities and threats.
SWOT analysis is a situational which includes strengths, weaknesses,
opportunities and threats that affect organizational performance.”
“The overall evaluation of a company strengths, weaknesses, opportunities and
threats is called SWOT analysis
In SWOT analysis the best strategies accomplish an organization’s mission by:
• Exploiting an organizations opportunities and strength.
• Neutralizing it threats.
• Avoiding or correcting its weakness.
Page | 86
SWOT analysis is one of the most important steps in formulating strategy using
the organization mission as a context; managers assess internal strengths
distinctive competencies and weakness and external opportunities and threats. The
goal is to then develop good strategies and exploit opportunities and strengths
neutralize threats and avoid weaknesses.
STRENGTH
• The Bank officers of BOP are considered as one of the most able professionals in
the banking world. However, they have added some local flavour in accordance
with their targeted segmented. In my observation that they interact with their
clients as if they are their personal friends and discuss about their problems as
their own.
• As a result of the compassionate and personalized services of the officers, the
clients’ perception for BOP is very high. They have trust and feel themselves to
be secure while dealing with BOP.
• BOP has opened all its branches at commercial areas so that the customers or
clients face no problems in reaching to the bank.
• BOP has got a reliable and easy to use internal computer system. Every
information regarding the transactions in customers’ deposits has been
computerized. Data are properly maintained.
• Not excellent but good facilities are given to employees
WEAKNESSES
• Lack of proper internal controls is one of the major weaknesses of BOP. It is also
pointed by the auditor in his review.
Page | 87
• BOP has formulized a lot of products and services for its customers, even more
than other commercial banks, but any advertisement on electronic media has not
been seen.
• I observed during my internship that some of the employees were burdened with
over work. So I think that the work should be distributed according to their post
and capabilities.
• Biased selection of employees.
OPPORTUNITIES
• Satisfy dynamic consumer needs, BOP has made significant inroads in its entire
service spectrum. A lot of products have been introduced especially in Retail
Banking (Agriculture side) and people are increasingly becoming loyal to the
bank and because of feasible transactions. Optimum pricing and branding
strategies of the bank are helping to make customer feel secure and convenient.
• All the opportunities of the 21st century is to be availed in the information
technology. Information technology is the future of this dynamic world.
Therefore, BOP should emphasize much on IT, especially on E-Banking. Bank
can design a universal account like other foreign banks, to enhance online
facilities.
• BOP has introduced a number of financial schemes including special ‘Deposit
Accounts’. These accounts have their unique features. During the last three years,
BOP deposits have been increasing @ 40%, which is a very healthy sign.
Therefore, with the commencement of new schemes there can even be a greater
increase in its deposits.
THREATS
 BOP is facing a strong competition by its competitors
Page | 88
 BOP is facing major threat in Pakistan because major businesses don’t prefer
BOP in business dealings due to its comparison with private banks.
 Misrepresentations
LEARNING AS A STUDENT
Duties
 Deposit slips
 Pay order
 Cheques
 Atm form
 Account opening form
 Issuing cheque book
 Issuing ATM cards
 Providing help to newly come customers
New knowledge acquired
I acquired plenty of knowledge through my internship in this bank. When I was

doing my internship there first thing, I have learned how to face customers and to
deal with them.
Page | 89
Experience impact career
The experience which I get from internship will be helpful to me in my future. I

have learned all major functions of the organization. I got practical experience; it
is very compliment for me in near future after completion of my study for joins
any organization.
RECOMMENDATIONS
 Employees of the organization should be given the task and authority. They
should be asked for their responsibilities.
 Good relationship among staff leads to the peak performances in any

organization. I observed relationship among staff was normal.
 There should be information desk to provide information to the customers and

receive complaints of the clients.
 The behavior with the customers should be improved.
 Section of utility bills should be improved.
 Need of necessary training to do work professionally.
 Qualified staff should be needed to improve functioning.
 Bank should decrease its administrative expense.
 There should not be nepotism and favoritism in organization.
 Branch should adopt various marketing strategy to promote its products.
Page | 90
BIBLIOGRAPHY
www.bop.com.pk
www.google.com
BANK MANAGER
BRANCH STAFF
Page | 91
ANNEXURE
Page | 92
Page | 93
Page | 94

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2023

Bank of Punjab Internship Report

UNIVERSITY OF THE PUNJAB

POLICIES OF THE BOP…………………………………………………………………………………………………………………………………...23

EMPLOYEES PERSONNEL IN VARIOUS SECTIONS......................................................................................................24

PRODUCTS AND SERVICIES OF BOP……………………………………………………………………………………………………………...31

PROFIT BEFORE TAX TO TOTAL INCOME..........................................................................................61

PRICE EARNING RATIO.............................................................................................................................64

ACCOUNT OPENING DEPARTMENT ……………………………………………………………………………………………………………..70

My internship program consisted of 6 weeks. During my internship I worked in different

I express my heartiest and sincerest sense of gratitude to respectable

I owe depth of gratitude to my affectionate parents, and teacher who

HISTORY OF BANKING IN PAKISTAN

The principle of nationalization of banks is to stream line the operation of commercial

▪ To eliminate unhealthy and uneconomic competition among commercial banks.

PUBLIC SECTOR COMMERCIAL BANKS

LOCAL PRIVATE BANKS

Askari Commercial Bank Limited

Bank Al-Falah Limited

Bank Al Habib Limited

Meezan Bank Limited

Faysal Bank Limited

Silk Bank Limited

Soneri Bank Limited

Union Bank Limited

Muslim Commercial Bank

Union Bank Limited

ABN Amro Bank

Zari Tarqiati Bank Ltd.

Pakistan assumed full control of banking and currency in Pakistan.

Dr. Muhammad Amjad Saqib......................................................................Director

Syed Ghazanfar Abbas Jilani......................................................................Director

Mr. Mohammad Mudassir Amray ................................................................Director

Mr. Asif Reza Sana .......................................................................................Director

Ms. Nadia Rehman .......................................................................................Director

Mr. Muhammad Naeem Khan ......................................................................Director

Mr. Zafar Masud ....................................................................................President & CEO

Mr. Kamran Hafeez ....................................................................... Secretary to the Board

BOARD AUDIT COMMITTEE

Mr. Mohammad Mudassir Amray ................................................................Chairman

Syed Ghazanfar Abbas Jilani .........................................................................Member

Mr. Mohammad Naeem Khan ........................................................................Member

RISK MANAGEMENT, COMPLIANCE AND NPL REVIEW COMMITTEE

Syed Ghazanfar Abbas Jilani .........................................................................Chairman

Mr. Mohammad Mudassir Amray....................................................................Member

Dr. Muhammad Amjad Saqib ..........................................................................Member

Ms. Nadia Rehman ...........................................................................................Member

Mr. Mohammad Naeem Khan ..........................................................................Member

HUMAN RESOURCE, COMPENSATION, PERFORMANCE EVALUATION

Mr. Asif Reza Sana .........................................................................................Chairman

Dr. Muhammad Amjad Saqib ...........................................................................Member

Syed Ghazanfar Abbas Jilani .............................................................................Member

STRATEGY, ISLAMIC AND PRIORITY SECTORS’ FNANCING COMMITTEE

Dr. Muhammad Amjad Saqib ...........................................................................Chairman

Mr. Asif Reza Sana ..................................................................................Member

Ms. Nadia Rehman ..................................................................................Member

Mr. Mohammad Naeem Khan .................................................................Member

INFORMATION TECHNOLOGY AND COMMUNICATIONS COMMITTEE