INTRODUCTION:

The bank was registered in 1924 to accomplish the three-tier system of

cooperative credit in the province of Punjab. It is engaged in all types of banking & credit business with societies
and individuals. Primary cooperative societies constituted the base; the central cooperative banks were at the
secondary level and at the top were the Punjab Provincial cooperative bank limited serving as an apex bank for
providing credit to the cooperatives.
The PPCBL gained the status of Scheduled Bank in 1955. PPCBL was organized and being managed on the
principal of voluntary and open membership, democratic member control, member economic participation,
autonomy, independence, self-help and mutual cooperation.
In October 1976, the Federal Government Promulgated the "Establishment
of Federal Bank for Cooperative and regulation of cooperative banking
ordinance", whereby the cooperative banking system in the Punjab was converted from three tiers into two tiers
resulting in the dissolution of 46 central/urbanandindustrial cooperative banks and banking unions. According to the
provisions of the ordinance, the undertakings of the Dissolved Cooperative Banks stood transferred to and vested by
in the Punjab provincial cooperative Bank Limited on the terms and conditions notified by the provincial
Government in order to manage and control the undertakings of the dissolved cooperative Banks.

Name of Zone No of Branches

Lahore 24

Gujranwala 18

Rawalpindi 17

Sargodha 17

Faisalabad 18

Bahawalpur 19

Multan 28

D.G.Khan 20

MANAGERIAL POLICIES:
 Promote growth of the Cooperative movement.

 Carry on banking and credit business to facilitate working of the member

Cooperative Societies.

 Accept deposits of money and other funds from the public, repayable on
demand or otherwise, and withdrawal by cheque, drafts, order or otherwise, for the
purpose of lending or investment;

 Borrow or raise money;

 Lend or advance money either upon or without security to member societies and any
other person in such manner as may be necessary;

 Serve as a balancing Centre for cooperative societies in its

area of operations

 Grant loans and overdrafts to depositors of the Bank against their

f i x e d deposits;

 Acquire, sell, mortgage or lease lands and buildings, and build structures, god
owns and houses for its own use or for those of its member societies;

Management hierarchy
PRESIDENT/CEO

ZONAL CHIEFS/ SVP

VICE PRESIDENT/SVP

HEADS/SVP
 Dy, HEADS/EVP

MANAGERS/AVP

OFFICERS GRADE II, III

CLERICAL & TECHNICAL STAFF

MANAGERIAL POLICIES

In PPCBL, the policies are of three types:

 Operational policies

 Credit policies

 Human recourse policies


OPERATIONAL POLICIES
Operational and system division is responsible for the formation of the operational policies.
Executive in charge of the system and the operation division is there to implement the
operational policies. It is the duty of executive-in-charge to:

 Monitor the overall operation of the bank

Activities performed by operation department of different branches

CREDIT POLICIES
Two division form credit policies:

 Credit Division

 Credit Monitoring Division

HUMAN RESOURCE POLICIES

The establishment of policies can help an organization demonstrate, both internally and
externally, that it meets requirements for diversity, ethics and training as well as its commitments
in relation to regulation and corporate governance of its employees. For example, in order to
dismiss an employee in accordance with employment law requirements, amongst other
considerations, it will normally be necessary to meet provisions within employment contracts
and collective bargaining agreements. The establishment of an HR Policy which sets out
obligations, standards of behavior and document disciplinary procedures, is now the standard
approach to meeting these obligations.
HR policies can also be very effective at supporting and building the desired organizational
culture.
Development of the professional skills and knowledge of the employees is essential for the
efficient functioning of the organization. At Bank appropriate design policies and practices have been instituted
to achieve strategic objective. HR policies are made by the Executive-in-charge of human
resource division. These policies are as follows:

 HR Development

 Type of Human Development

MARKETING MIX :

 Product
Anything that can be offered to a market for attention acquisition, use
or consumption that might satisfy a want or need‖

 Price
Price is the amount a customer pays for the product. The price is very important as it
determines the company's profit and hence, survival.
  Placement
Represents all of the methods of communication that a marketer may use to provide
information to different parties about the product

 Promotion
Represents all of the methods of communication that a marketer may use to provide
information to different parties about the product.

FINANCIAL STATEMENT ANALYSIS

Horizontal analysis of PPCBL:

Punjab provincial cooperative bank

BLANCE SHEET

ASSETS 2009 2010

Rs ‘000’ Rs ‘000’

Cash balances with other treasury banks 115,827,868 115,442,360

Balances with other banks 28,405,564 30,389,664

Lending to financial institutions 19,587,176 23,025,156

Investments 217,642,822 301,323,804

Advances 475,243,431 477,506,564

Operating fix assets 25,147,192 26,888,226

Deferred tax assets 3,062,271 6,952,66

Other assets 59,316,438 53,496,240

Total assets 944,232,762 1,035,024,680

 LIABILITIES 2009 2010

Bills payable 10,621,169 8,006,631

Borrowing from financial institutions 45,278,138 20,103,591

Deposits & other accounts 726,464,825 832,151,888

Subordinated loans - -

Liabilities against assets of leasing 42,629 106,704

Deferred tax liabilities-net - -

Other liabilities 42,269,623 46,160,038

Total liabilities 824,676,384 906,528,852

Net assets 119,556,378 128,495,828

RATIO ANALYSIS

Ratio analysis enables the analyst to compare items on a single financial statement or to examine
the relationships between items on two financial statements. After calculating ratios for each
year's financial data, the analyst can then examine trends for the company across years. Since
ratios adjust for size, using this analytical tool facilitates intercompany as well as intercompany
comparisons. Ratios are often classified using the following terms: profitability ratios (also
known as operating ratios), liquidity ratios, and solvency ratios. Profitability ratios are gauges of
the company's operating success for a given period of time. Liquidity ratios are measures of the
short-term ability of the company to pay its debts when they come due and to meet unexpected
needs for cash. Solvency ratios indicate the ability of the company to meet its long-term
obligations on a continuing basis and thus to survive over a long period of time. Financial ratios
allow for comparison:
  Between companies
 Between industries
 Between different time periods for one company
 Between a single company and its industry average

PROFITABILITY RATIOS
 The continued viability of any bank depends on its ability to earn an appropriate return on
its assets and capital. Good earnings performance enables a bank to fund its operations,
remain competitive in the market and increase or decrease in market funds. Profitability
ratios relate profit to sales and investments. These ratios indicate the firm’s overall
effectiveness.

 Operations and give us idea how well firm utilized its resources in generating profit and
shareholder value.

GROSS PROFIT MARGIN RATIO

 Gross profit margin ratio is used to assess the profitability of a Bank's core activities.
Gross profit margin indicates the relationship between gross profit and interest earned. A
high gross profit margin indicates that a Bank can make a reasonable profit.

 Formula = Gross Profit / Interest earned (Revenue)

Year 2019 2020

Ratio % 48.0 48.85

5

ANALYSIS
The both Years have been outstanding year with the bank recording the higher profit .The Punjab
provincial cooperative bank wide range of product offering, large branch network and committed
workforce are some of fundamental strengths that enabled PPCBL to achieve exceptional in a
very competitive market. The gross profit in 2010 is higher than previous year 2009.

NET PROFIT MARGIN RATIO

Net profit margin measures the percentage of revenue remaining after all cost and expenses,
including interest and taxes have been deducted.

Formula = Net Profit after Taxes / Interest earned

Year 2019 2020

Ratio % 22.5 19.85

3

The Debt to Equity Ratio

Formula = Total Liabilities/ Total Shareholder’s equity

 Debt To Equity
8.775
8.77
8.765
8.76
8.755 Debt To Equity
8.75
8.745
8.74
8.735
8.73
8.725
2009 2010

Analysis

The Punjab Provincial Cooperative Bank Capital funds to Total Assets ratio is increased during
years. The ratio is 0.09 in 2009, representing lowest. The ratio is increased in 2010 as the graph
shows ratios of as well.

WORKING EXPERIENCE DURING INTERNSHIP

My internship provided me a great opportunity to learn & experience different

banking practices. During the three months of my internship I got a good chance to seewhat the
actual banking is regarding the operations performed in the back office and in the main branch.

DEPARTMENTS:

HR

During my three weeks I work in the Admin, Establishment and HR section of HR

division.

In these sections I learnt the following things.

 Maintaining the employee personal data.

 Correspondence regarding employee issues.

  Maintaining the employee salary.

 Issue the employee salary.

 Issue the Show-causes to employees.

 Receiving and posting CV’s came for interviews.

 Shortlisting of CV’s and Calling for interview.

 Recruitment of new employees.

 Collecting and maintaining the personal files of new employees.

 Conducting TNA and arranging training programs for employees.

 Any other assignment assigned by the Managers.

 Manage and develop direct reporting staff.

 Manage and control departmental expenditure within agreed budgets.

 COMPLIANCE

SAM (Special Asset Management):

 1. Responsible for the overall functioning of the Special Assets Management.

 2. Responsible for formulation of strategy for the Group and setting direction
for reducing NPLs of the bank, through negotiations or legal interventions.


 3. Responsible for regulatory reporting to SBP and other Government Agencies.
 4. To provide leadership, motivation and opportunities for development for
theGroup.

 5. Responsible for interface between the group and the senior management
for day to day development and over all targets given to the Group.
 6. To manage recoveries from defaulters / NPLs.

 7. To formulate, implement and monitor remedial strategy for recovery/
reduction of non-performing credit portfolio.

 8. To supervise collections of NPLs from customers by
negotiation, legal intervention and out of court settlements.

 9. To conduct negotiations with customers for expediting repayments and
alternative repayment schedule.

 10. To identify training and development needs of team members and
ensuresongoing capability development.

 11. Presentation of annual budget of the group to senior management for approval.

 12. To evaluate performance of team members and provides feedb
a c k o n a n d ongoing basis. Coach team members and ensures that they are
motivated toperform effectively.

FINANCE
Treasury Department:

 1. Establish and maintain sound accounting and internal control
discipline / system within the department to ensure adequate,
effective and prescribed by the statutory bodies as well as the
bank’s internal policies.
 2. Supervise the process for timely preparation of final and
i n t e r i m f i n a n c i a l statements in accordance with the applicable financial reporting
framework and to present these financial statements to the Audit Committee/Board for
approval and onward publication and submission to the shareholders and relevant
statutory bodies.

 3. Develop and supervise implementation of adequate systems and procedures to
generate and submit accurate and timely information to SBP in accordance
with the applicable regulation.
 4. Strategic business plans, budgets and forecasts and their submission to
theBoard / Board Committee, Senior Management and the reporting of
periodicvariations to the Board / Senior Management for effective monitoring
  BRANCH BANKING

1stand 2ndweek:
During the first and second week of my internship, I learnt these things
atthe account opening/maintenance department:

 To open the account

 To set the account no. stamp

 To fill the deposit slip

 To issue the cheque book

To Open the Account:

During my internship, I opened two types of account;

 single account

 Joint account

1) Single Account:
I monitored three types of accounts under this head along with documentation
required for these accounts.

 Account of a literate person

 Account of a salaried person

 Account of an illiterate person

2) Joint Account:
Besides opening this account I was provided with the followinginformation
regarding JOINT ACCOUNT by manager operations.

How a joint account is affected by the death of one joint account holder:
3) Partnership Account:
I did not open this account personally, but I know the following regardingPARTNERSHIP
ACCOUNT.

Documents needed to open this account

Moreover the operation manager told me these thingsregarding the partnership account:

Death of a partner:

Admission of new partner Documents required in case of a new partner

CONCLUSION:

My Internship:

The internship is a golden chance for the students of MBA to develop the capability and polish
skills of administration and management in the practical environment of different organizations.
In the context, I selected the PPCBL (Punjab Provincial Cooperative Bank Limited). This report
shows and will guide the readers to have an idea about operations and the practices followed by
PPCBL. The reason for doing the internship in PPCBL is to get knowledge about Administrative
practices prevailing in this Bank.
I started my training in PPCBL Head Office Mall road Lahore. I joined on 15 thJuly 2013.
This training session lasts till 14 October 2013. During this internship I learnt how to implement
theory in practical. I tried my level best to polish my professional skills and enhance my practical
knowledge.