INTERNSHIP REPORT

FIRST WOMEN BANK LIMITED

(The worlds only bank for women)

A unique financial institution A commercial bank $ DFI Catering to the socio-economic needs of women, run and managed by women
PRESENTED BY UNSA PARVEEN MC070403584 MBA (Final year) Completed on ( 29-06-2009 ) VIRTUAL UNIVERSITY OF PAKISTAN

2. DEDICATION
With unique encouragement and involvement of my parents and bank staff, I completed my report I concede the politeness and guidance of my respectable parents. Therefore, this report is devoted to my parents.

3. ACKNOWLEGEMENT
I am thank full to the management of First Women Bank Limited , all of its office staff , all of its sales department , who give me a chance to complete my internship program in a better way. All the staff of FWBL gives me full support and give me every piece of information which I asked them. I am specially thanking full to Manager Miss Shakira Mirza who give me permission for doing internship in this organization. Many thanks also go to my friends and classmates at my campus, with whom I had shared ideas on different topics and had really nice time with them.

4. Executive summary

As part of the academic requirement for completing MBA (Banking and Finance) Master .Business Administration of the students are required to under go six weeks of internship with an organization. The internship is to serve the purpose of acquainting the students with the practice of knowledge of the discipline of banking administration. This report is about First Women Bank Limited. FWBL was established in 1989 and since then, it has expended its network, becoming the largest women Bank of the country.

In this Report I have discussed the followings topics of the bank 1The brief history of the organization is described in the start, the bank was introduces in 1989 and it has 535 number of employees and 38 branches in all over the Pakistan 2The nature and product lines of the organization are explained in the banging. The bank has many products such as first car, first house, first choice ,Micro Financing ,SME Financing, Business Loans for Women ,Women, Personal etc 3Afterwards its some major competitors are discussed 4The bank has many departments in its branches. Each is discussed in very detail. Cash department, remittances, clearing, advances and deposits departments are important departments of the FWBL 5The brief introduction of FWBL Gujarat branch where I have got my internship is explained. Its cooperative staff and its working are described. 6As an internee in First Women Bank Limited the main focus of my study research was on General banking procedures in one of the branches of First Women Bank Limited. These operations include Remittances, deposits, advances and foreign exchange. Similarly different aspects of overall of FWBL are also covered in this report. 7Financial department of the FWBL is discussed its electronic working is explained. The bank uses the AUTOBANKER for the record of its daily transactions and customers statements. 2Future prospects are Phone banking Call center Internet banking Utility bills payments Point of sale terminals Debit cards, etc

2Financial ratios are discussed. Three years financial comparison is conducted in this report. How and at which ratio profit of the organization is increasing day by day 3SWOT analysis is also described in this report, the strengths, weaknesses; opportunities and threat to the banking sector are described in detail. 1. Exploiting an organizations opportunities and strength.

2. Neutralizing it threats. 3. Avoiding or correcting its weakness. 4Competitors analysis of this organization is also conducted and certain conclusions are made. 5At the end some suggestions are suggested for enhancing the working capacity of the banking sector. 6References and sources which are used in my report are also illustrated at the end of the report. I have collected material from different books, from internet web sites and from newspapers. The banking site www.fwbl.com.pk is very helpful in my repost preparation. 7At the end of the report I have attached some financial statements, ratios analysis graphs and banking advances and deposits reprehensive graphs, from where I have collected material for the preparation of my internship report.

5. Scanned copy of the internship certificate

Table of Contents

CONTENTS
1. Title page 2. Dedication 3. Acknowledgement 4. Executive summary 5. Scanned copy of the internship certificate 6. Table of contents 7. Brief introduction of the organizations business sector. 8. Overview of the organization 9. Organizational structure 10. Plan of your internship program 11. Training program 12. Structure of the Finance Department 13. Functions of the Finance Department 14. Critical analysis 15. SWOT analysis of organization in the business sector 16. Conclusion & recommendations for improvement 17. Reference & Sources used 18. Annexes

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01 02 03 04 06 07 08 10 19 35 38 43 48 53 66 70 75 76

7.Brief introduction of the organizations business sector

The FWBL Business Center spells a new era of economics empowerment and development center of opportunities aimed at improving business run by women. There are three Business centers one is at Karachi, Lahore and Islamabad. Business Center Lahore and Islamabad started their operation in Feb 1999, while Karachi in May 1999.

Ours Aims
Developing new women Entrepreneurs Linking the center with branch network countrywide. Providing Women Entrepreneurs information and business advice relating to business panning and management Finance Sales & Marketing Export Quality standards. Exhibitions of products at Chamber of Commerce and Export Promotion Bureau and other places at concessionary rates. Lecture / Seminars on business, Management and Export.

TARGET GROUP OF WOMEN

House Wives Working Women Female Student

STRATEGY
Educations Economic of enlistment Welfare of women and their families

ACTIVITIES

To achieve the above mentioned aims and objectives the following activities are carried out on regular basis.

1. Shorts terms courses (One Month). 2. Workshops (Two or Three days). 3. Advanced Courses (More then one month ) 4. Exhibition & Display of products 5. Advisory Services & Counseling SUMMER CAMP
Business Center offered special courses for female students during their summer vacations at discounted rate.

ADMISSION PROCEDURE
An admission is granted on first come first served basis. Nominal fee is charged for each course. Registration fee of cost.

BUSINESS CENTER OFFICES

Karachi Lahore Islamabad

8. Overview of the organization

a. HISTORY of FWBL:

First Women Bank Ltd. is a unique financial institution, a scheduled Commercial Bank and a Development Financial Institution for socio-economic empowerment of women. First Women Bank Limited (FWBL) is located in Karachi, Sindh, Pakistan. First Women Bank Limited was incorporated as a Scheduled Commercial Bank in Public Sector as Public Company Ltd by shares on 21st November 1989 Under Companies Ordinance 1984 & Commenced its business on 2nd December 1989 with a paid up capital of Rs. 100 million (Now enhanced to Rs. 200 Million) 90% of which was contributed by five leading public sector Banks of the country viz: National Bank of Pakistan, Habib Bank Limited, Muslim Bank Commercial Limited, United Bank Limited and Allied Bank of Pakistan Limited in varying proportions and 10% had come from Federal Government.

ORGANIZATION:
The Bank is headed by Ms. Zarine Aziz, who took over as President in year 2001. FWBL suffered heavy FOREX loss in 1996. The situation further deteriorated due to negative equity, pending tax appeal, low capital base, and infected balance sheet. In 2001, the Government created an enabling environment for the Bank. The period from June 2001 to December 2006 was an era of Turnaround for the First Women Bank Ltd. with significant growth recorded in all financial activities. The Bank accomplished the highest ever results in all key areas during the years 2001 2006 over the previous 12 years and continued to progress in all spheres of financial and operational activities.The Bank crossed achieving consolidated net profit of Rs. 1.2 billion during last 6 years 2001 to 2006 (as on January 23, 2007)

Paid-up Capital was further enhanced to Rs.283 million with the injection of Rs. 40 million from the Ministry of Women Development, Government of Pakistan during 2004. The Pakistan Credit Rating Agency has upgraded the long and short-term credit ratings to AA and A1+, respectively. The rating demonstrates the Banks sustainability and financial strength. FWBL was the first Bank to launch Micro Credit in Pakistan. The Bank has disbursed Rs.10.8 billion to women, thereby proved the best outreach. In collaboration with ILO, FWBL directly financed women micro-borrowers in rural areas. The project identified 42 micro-businesses and provided skill training to 375 rural women. The Bank disbursed micro-credit to 972 women living below poverty line in 64 villages, with 100% recovery rate. Ms. Shafqat Sultana, the newly appointed President of First Women Bank Ltd. has assumed her office today in Karachi. She is the 3rd president of First Women Bank Ltd.Ms. Shafqat has been serving the FWBL as its Executive Vice President and General Manager Sindh and Balochistan for the past nine years. She was also member of Executive Committee of the Bank.

b. Nature of the organization:

1Receiving Deposits 2Advances of Money 3Safe Custody 4Transfer of Money 5General Utility Services c. Business volume FWBL crosses Rs. 1 Billion in Profit Best out reach to Rs. 8.5 Billion women (loan disbursed) Balance sheet size/ Rs. 10.503 Billion Total Assets PACRA credit Rating Long Term BBB+ Short Term A2 Recovery Rate 98%

Future Contracts planned for a particular period etc:

Human resource management and development: Several HRM and DI are planned for the future. The introduction of an automated HRIS will enable the effective tracking of all staff qualifications and experience, providing information for effective talent management, succession, planning and work life balance as another area of focus for the female workforce of the bank. Competency based learning initiatives will be introduced to develop skills of staff and will be cascaded throughout the bank. These initiatives will provide a solid foundation for the long term sustainability of the human resource assets of the bank. First women bank limited run and managed by the women, for the women of Pakistan, is committed to be the benchmark employer of women in the banking industry, with the best practice and the best financial services, in line with its vision. To be the lead bank for women: dynamic, adaptive and responsive to their special economic

needs, offering the best financial services and the best banking practices. Information technology: The bank is committed to provide more resources for the implementation of new innovation in the field of information technology for the benefit of our valuable clientele. After the successful launch of the online banking, the bank is improving its IT system, automation of Head office would be completed soon. Further, it is planned to consolidate and build on the improved infrastructure by upgrading of core banking applications, offering new products, such as 8Phone banking 9Call center 10Internet banking 11Utility bills payments 12Point of sale terminals 13Debit cards, etc.

d. Product lines
(A complete range of products/ services of the organization)
Products play a vital role in the success of any organization. They stimulate the organizational income to increase and populate the organization as well. The followings products are offered by the FWBL to its customers. 1.Micro Financing 2.SME Financing 3.Business Loans for Women 4.Education Loans for Women 5.Personal Loans for Women 6.First Choice 7.First Car 8.First Home 9.Financial Services Desk

MICRO FINANCING FWBL is amongst the pioneers in micro-finance. In 2001 Women World Banking acknowledged FWBL as leader in micro-finance for its innovative products and services. The three-pronged strategy of FWBL micro-finance model is: 1Extending micro-credit to the Urban and Rural Women; 2Offering wide-ranging support services; 3Research, documentation and compilation of women centric data; The Micro-Finance product we offer; 1Ranges from Rs. 5000 to highest credit amount in the industry; of Rs. 100,000 2Mark-up rates are amongst the lowest Thus retaining and elevating micro borrowers to higher micro-credit ceilings.

SME FINANCING The model of First Women Bank Ltd. is the way forward, which believes that a "microborrower" of today is a potential "SME" and a "Corporate Client" of the future. The Bank offers SME Loans to Women Entrepreneurs: 1Funds for start-ups 2Working capital / Export Finance Medium term loans to established SMEs can purchase new equipment BUSINESS LOANS FOR WOMEN FWBL extends loan to business women for establishment of new business/development of existing business, and for working capital. Women can get loans ranging from Rs. 0.1 Million to Rs. 2 Million. The Financial Services Desk of the bank assists the applicants of the loan in financial, legal, taxation, marketing and management issues.

EDUCATION LOANS FOR WOMEN Often women are deprived of their right to pursue higher education mainly because of the financial constraints many family face. Society does not realize that well-educated enlightened women health by rearing an equally enlightened future generation. First Women Bank Ltd Offer education loan at an attractive rate, with special bonus for the bright students.

PERSONAL LOAN FOR WOMEN Providing you just that extra spending power around the house no matter what your needs might be! Get greater spending power with personal loans for women. FIRST CHOICE First Women Bank Ltd. proudly present loans for buying consumer durables through "FIRST CHOICE" Scheme. Through this scheme, women can buy electrical appliances for their home and kitchen with the convenience of paying on a monthly basis. First Choice scheme facilitates women in buying items of necessities to luxuries instantly, which they otherwise could not afford due to budgetary constraints.

FIRST CAR The scheme "First Car" is designed to assist women from all walks of life to conveniently avail car loan facility from the bank on low markup rates. The scheme is specially designed for working women who often face problems in commuting to their workplace. FWBL's 'First Car' offers competitive financing rates, low down payment, flexible repayment option, quick processing and insurance coverage from reputable companies.

FIRST HOME First Women Bank Ltd. offer home loans under the brand "First Home". Women can get a loan up to Rs. 7.5 million from the bank.

These loans are offered to all classes of working women i.e. salaried, self-employed (proprietor), professionals in business. Another great advantage that only FWBL offers is that these Home Loans can be availed singly or jointly i.e. with spouse or a male earning member of the family. FINANCIAL SERVICES DESK Women in developing countries are often unable to access financial and non financial resources that might help them in attaining a level of economic self-sufficiency. There are both practical obstacles as well as social constraints faced by women who are interested in improving their economic prospects. Credit can only be effective when it is understood as one aspect of an integrated set of support service to strengthen women's-economic activities. Financial Services Desk (FSD) serves as a powerful tool for economic empowerment and support to women, by providing support and advise on Credit Management, Legal issues, Taxation and Marketing.

Our objectives are to: 1Assist women in interacting with government organizations, trade bodies, taxation authorities, as well as non- government institutions. 2Provide technical support to export oriented entrepreneurs. 3Help women attain higher economic standards, through specific consumer loan products.

e. Competitors
The followings are the main competitors of the first women bank limited. 1National Bank of Pakistan 2Habib Bank Limited 3Muslim Bank Commercial Limited 4United Bank Limited and 5Allied Bank of Pakistan Limited 6& ALL COMMERCIAL BANKS

9. Organizational structure
1ZARINE AZIZ (PRESIDENT) 2Charmaine Hidayatullah Head of Legal & Security, EVP 3Shahid Siddique Amjad Mughal Head of Finance & Planning 4Shafqat Sultana Head of SME, EVP 5Tauqir A. Siddiqui CIO & Head of Information Technology 6Naushaba Shehzad Dy. Head Credit 7Mustansir Rao Treasurer 8Ferozeali Hussaini Dy. Head Risk Management Division 9Mr. Abdul Ghafoor Head of HRD

a.Organizational Hierarchy chart

b. Number of employees The numbers of employees have been changed during the period of time. Numbers of employees are increasing day by day as the tasks are increasing. Permanent Temporary on contractual basis Daily wages Banks own staff strength Outsourced Total 323 192 20 535 535

c.Main offices
a. b. c. d. e. f. g. Sindh & Baluchistan Region Imperial Court Branch Karachi Punjab Region Main Boulevard Branch Lahore Islamabad Region Blue Area Branch Islamabad NWFP Region the Mall Branch Peshawar

d. Introduction of all the departments

MANAGEMENT Management is a distinct process consisting of activities of planning, organizing, actuating and controlling performed to determine and accomplish stated objectives with the use of human being and other resources.8 The management has two types. 1 Centralized. 2 Decentralized. Centralized Management tends to concentrate decision making at the top of the Organization. Decentralized disperses decision making and authority throughout and further down the Organizational hierarchy. FWBL have a centralized type of management because all the decisions are taken by the top management.

Departments 1. CASH DEPARTMENT

Cash department performs the following functions

Receipt
The money, which either comes or goes out from the bank, its record should be kept. Cash department performs this function. The deposits of all customers of the bank are controlled by means of ledger accounts. Every customer has its own ledger account and has separate ledger cards.

Payments
It is a bankers primary contract to repay money received for this customers account Usually by honoring his cheques.

The Requisites of Cheque

There is no prescribed form of words or design of a Cheque, but in order to fulfill the Requirements mentioned in Section 6 above the Cheque must have the following. a) It should be in writing b) The unconditional order c) Drawn on specific banker only d) Payment on Demand

e) Sum certain in money f) Payable to a specific person g) Signed by the drawer

Parties to Cheque
The normal Cheque is one in which there is a drawer, a drawee banker and a payee, or no payee but bearer. a) The Drawer b) The Drawee c) The Payee

Types of Cheques
Bankers in Pakistan deal with three types of cheques a) Bearer Cheques Bearer cheques are cashable at the counter of the bank. These can also be collected through clearing. b) Order cheque These types of cheques are also cashable on the counter but its holder must satisfy the banker that he is the proper man to collect the payment of the cheque and he has to show his identification. It can also be collected through clearing. c) Crossed Cheque These cheques are not payable in cash at the counters of a banker. It can only be credited to the payees account. If there are two persons having accounts at the same bank, one of the account holder issues a cross-cheque in favour of the other account holder. Then the cheque will be credited to the account of the person to whom the cheque was issued and debited from the account of the person who has actually issued the cheque.

Payment of Cheques
It is a bankers primary contract to repay money received for his customers account usually by honoring his cheques. Payment of money deposited by the customer is one of the root functions of banking. The acid test of banking is the receipt of money etc. from the depositors, and repayment to them. This paying function is one, which is the distinguishing mark of a banker and differentiates him from other institutions, which receive money from the public. However the bankers legal protection is only when payment is in Due Course. The payment in due course means payment in accordance with the apparent tenor of the instrument, in good faith and without negligence to any person in possession thereof under circumstances, which do not afford a reasonable ground of believing that he is not entitled to receive payment of the amount therein mentioned. It is a contractual obligation of a banker to honor his customers cheques if the following essentials are fulfilled.

a) Cheques should be in a proper form: b) Cheque should not be crossed: c) Cheque should be drawn on the particular bank: d) Cheque should not mutilate: e) Funds must be sufficient and available: f) The Cheque should not be post dated or stale:

2. CLEARANCE DEPARTMENT
A clearinghouse is an association of commercial banks set up in given locality for the purpose of interchange and settlement of credit claims. The function of clearinghouse is performed by the central bank of a country by tradition or by law. In Pakistan, the clearing system is operated by the SBP. If SBP has no office at a place, the fwbl, as a Representative of SBP act as a clearinghouse. After the World War II, a rapid growth in banking institutions has taken place. The use of cheques in making payments has also widely increased. The collection as settlement of mutual obligations in the form of cheques is now a big task for all the commercial bank. When Cheque is drawn on one bank and the holder (payee) deposits the same in his account at the bank of the drawer, the mutual obligation are settled by the internal bank administration and there arises no inter bank debits from the use of cheques. The total assets and total liabilities of the bank remain unchanged. In practice, the person receiving a Cheque as rarely a depositor of the cheque At the same bank as the drawer. He deposits the cheque with his bank other than of payer for the collection of the amount. Now the bank in which the cheque has been deposited becomes a creditor of the drawers bank. The depositor bank will pay his amount of the cheque by transferring it from cash reserves if there are no offsetting transactions. The banks on which the cheques are drawn become in debt to the bank in which the cheques are deposited. At the same time, the creditors banks receive large amounts of cheques drawn on other banks giving claims of payment by them. The easy, safe and most efficient way is to offset the reciprocal claims against the other and receive only the net amount owned by them. This facility of net inter bank payment is provided by the clearinghouse. The representatives of the local commercial banks meet at a fixed time on all the business days of the week. The meeting is held in the office of the bank that officially performs the duties of clearinghouse. The representatives of the commercial banks deliver the cheques payable at other local banks and receive the cheques drawn on their bank. The cheques are then sorted according to the bank on which they are drawn. A summary sheet is prepared which shows the names of the banks, the total number of cheques delivered and received by them. Totals are also made of all the cheques presented by or to each bank. The difference between the total represents the amount to be paid by a particular bank and the amount to be received by it. Each bank then receives the net amount due to it or pays the net amount owed by it.

In-Word Clearing Books

The bank uses this book for the purpose of recording all the cheques that are being received by the bank in the first clearing. All details of the cheques are recorded in this book.

Out-Word Clearing Book:

The bank uses outward clearing register for the purpose of recording all the details of the cheques that the bank has delivered to other banks.

3. ADVANCES DEPARTMENT
Advances department is one of the most sensitive and important departments of the bank. The major portion of the profit is earned through this department. The job of this department is to make proposals about the loans. The Credit Management Division of Head Office directly controls all the advances. As we known bank is a profit seeking institution. It attracts surplus balances from the customers at low rate of interest and makes advances at a higher rate of interest to the individuals and business firms. Credit extensions are the most important activity of all financial institutions, because it is the main source of earning. However, at the same time, it is a very risky task and the risk cannot be completely eliminated but could be minimized largely with certain techniques. Any individual or company, who wants loan from FWBL, first of all has to undergo the filling of a prescribed form, which provides the following information to the banker.

Name and address of the borrower

a) Existing financial position of a borrower at a particular branch. b) Accounts details of other banks (if any). c) Security against loan. d) Exiting financial position of the company (Balance Sheet & Income Statement). e) Signing a promissory note is also a requirement of lending, through this note borrower promise that he will be responsible to pay the certain amount of money with interest.

Principles of Advances
There are five principles, which must be duly observed while advancing money to the borrowers. 1Safety 2Liquidity 3Dispersal 4Remuneration 5Suitability Bankers funds comprise mainly of money borrowed from numerous customers on various accounts such as Current Account, Savings Bank Account, Call Deposit Account, Special Notice Account and Fixed Deposit Account. It indicates that whatever money the banker holds is that of his customers who have entrusted the banker with it only because they have full confidence in the expert handling of money by their banker. Therefore, the banker must be very careful and ensure that his depositors money is advanced to safe hands where the risk of loss does not exist. The elements of character, capacity and capital can help a banker in arriving at a conclusion regarding the safety of advances allowed by him. 1Character: It is the most important factor in determining the safety of advance, for there is no substitute for character. A borrowers character can indicate his intention to repay the advance since his honesty and integrity is of primary importance. If the past record of the borrower shows that his integrity has been questionable, the banker should avoid him, especially when the securities offered by him are inadequate in covering the full amount of advance. It is obligation on the banker to ensure that his borrower is a person of character and has capacity enough to repay the money borrowed including the interest thereon. 2Capacity: This is the management ability factor, which tells how successful a business has been in the past and what the future possibilities are. A businessman may not have vast financial resources, but with sound management abilities, including the insight into a specific business, he may make his business very profitable. On the other hand if a person has no insight into the particular business for which he wants to borrow funds from the banker, there are more chances of loss to the banker. 3Capital: This is the monetary base because the money invested by the proprietors represents their faith in the business and its future. The role of commercial banks is to provide shortterm capital for commerce and industry, yet some borrowers would insist that their bankers provide most of the capital required. This makes the banker a partner. As such the banker must consider whether the amount requested for is reasonable to the borrowers own resources or investment. 4Liquidity: Liquidity means the possibilities of recovering the advances in emergency, because all he money borrowed by the customer is repayable in lump sum on demand. Generally the borrowers repay their loans steadily, and the funds thus released can be used to allow fresh loans to other borrowers. Nevertheless, the banker must ensure that the money he is lending

is not blocked for an undue long time, and that the borrowers are in such a financial position as to pay back the entire amount outstanding against them on a short notice. 5In such a situation, it is very important for a banker to study his borrowers assets o liquidity, because he would prefer to lend only for a short period in order to meet the shortfalls in the wording capital. If the borrower asks for an advance for the purchase of fixed assets the banker should refuse because it shall not be possible for him to repay when the banker wants his customer to repay the amount. Hence, the baker must adhere to the consideration of the principles of liquidity very careful. 6Dispersal: The dispersal of the amount of advance should be broadly based so that large number of borrowing customer may benefit from the bankers funds. The banker must ensure that his funds are not invested in specific sectors like textile industry, heavy engineering or agriculture. He must see that from his available funds he advances them to a wide range of sector like commerce, industry, farming, agriculture, small business, housing projects and various other financial concerns in order of priorities. Dispersal of advances is very necessary from the point of security as well, because it reduces the risk of recovery when something goes wrong in one particular sector or in one field. 7Remuneration: A major portion of the bankers earnings come form the interest charged on the money borrowed by the customers. The banker needs sufficient earnings to meet the following: a) Interest payable to the money deposited with him. b) Salaries and fringe benefits payable to the staff members. c) Overhead expense and depreciation and maintenance of the fixed assets of the bank. d) An adequate sum to meet possible losses. e) Provisions for a reserve fund to meet unforeseen contingencies. f) Payment of dividends to the shareholders. h. Suitability The word suitability is not to be taken in its usual literary sense but in the broader sense of purport. It means that advance should be allowed not only to the carefully selected and suitable borrowers but also in keeping with the overall national development plans chalked out by the authorities concerned. Before accommodating a borrower the banker should ensure that the lending is for a purpose in conformity with the current national credit policy laid down by the central bank of the country.

Forms of Loans
In addition to purchase and discounting of bills, bankers in Pakistan generally lend in the form of cash finance, overdrafts and loans. FWBL provides advances to different people in different ways as the case demand.

A) Cash Finance
This is a very common form of borrowing by commercial and industrial concerns and is made

available either against pledge or hypothecation of goods, produce or merchandise. In cash finance a borrower is allowed to borrow money from the banker up to a certain limit, either at once or as and when required. The borrower prefers this form of lending due to the facility of paying markup/services charges only on the amount he actually utilizes. If the borrower does not utilize the full limit, the banker has to lose return on the unutilized amount. In order to offset this loss, the banker may provide for a suitable clause in the cash finance agreement, according to which the borrower has to pay markup/service charges on at least on self or one quarter of the amount of cash finance limit allowed to him even when he does not utilize that amount.

b) Overdraft/Running Finance
This is the most common form of bank lending. When a borrower requires temporary accommodation his banker allows withdrawals on his account in excess of the balance, which the borrowing customer has in credit, and an overdraft thus occurs. This accommodation is generally allowed against collateral securities. When it is against collateral securities it is called Secured Overdraft and when the borrowing customer cannot offer any collateral security except his personal security, the accommodation is called a Clean Overdraft. The borrowing customer is in an advantageous position in an overdraft, because he has to pay service charges only on the balance outstanding against him. The main difference between a cash finance and overdraft lies in the fact that cash finance is a bank finance used for long term by commercial and industrial concern on regular basis, while an overdraft is a temporary accommodation occasionally resorted to.

c) Demand Financing/Loans
When a customer borrows from a banker a fixed amount repayable either in periodic installments or in lump sum at a fixed future time, it is called a loan. When bankers allow loans to their customers against collateral securities they are called secured loans and when no collateral security is taken they are called clean loans. The amount of loan is placed at the borrowers disposal in lump sum for the period agreed upon, and the borrowing customer has to pay interest on the entire amount. Thus the borrower gets a fixed amount of money for his use, while the banker feels satisfied in lending money in fixed amounts for definite short periods against a satisfactory security 4.

REMITTANCE DEPARTMENT

Remittance means a sum of money sent in payment for something. This department deals with either the transfer of money from one bank to other bank or from one branch to another branch for their customers. FWBL offers the following forms of remittances. a) Demand Draft b) Telegraphic Transfer c) Pay Order d) Mail Transfer

Demand Draft
Demand draft is a popular mode of transfer. The customer fills the application form. Application form includes the beneficiary name, account number and a senders name. The customer deposits the amount of DD in the branch. After the payment the DD is prepared and given to the customer. FWBL officials note the transaction in issuance register on the page of that branch of FWBL on which DD is drawn and will prepare the advice to send to that branch. The account of the customer is credited when the DD advice from originating branch comes to the responding branch and the account is debited when DD comes for clearance. DD are of two types. a) Open DD: Where direct payment is made. b) Cross DD: Where payment is made though account. FCHARBLGES FOR DD5 I. Up to Rs. 50,000/- is Rs 50/- only II. Over Rs. 50,000/- is 0.1%

Pay Order
Pay order is made for local transfer of money. Pay order is the most convenient, simple and secure way of transfer of money. FWBL takes fixed commission of Rs. 25 per pay order from the account holder and Rs. 100 from a non-account holder.

Telegraphic Transfer
Telegraphic transfer or cable transfer is the quickest method of making remittances. Telegraphic transfer is an order by telegram to a bank to pay a specified sum of money to the specified person. The customer for requesting TT fills an application form. Vouchers are prepared and sent by ordinary mail to keep the record. TT charges are taken from the customer. No excise duty is charged on TT. The TT charges are: Telegram/ Fax Charges on TT = Actual-minimum Rs.125. Cable telegram transfer costs more as compared to other title of money. In cable transfer the bank uses a secret system of private code, which is known to the person concerned with this department and branch manager.

Mail Transfer
When the money is not required immediately, the remittances can also be made by mail transfer (MT). Here the selling office of the bank sends instructions in writing by mail to the paying bank for the payment of a specified amount of money. Debiting to the buyers account at the selling office and crediting to the recipients account at the paying bank make the payment under this transfer. NBP taxes mail charges from the applicant where no excise duty is charged. Postage charges on mail

transfer are actual minimum Rs. 40/- if sent by registered post locally Rs.40/- if sent by registered post inland on partys request.

5.HUMAN RESOURCE MANAGEMENT Human Resource plays a vital role in the success of every service organization. They interact between man and machine. Their attitude can win or loose the customer. The positive attitude could only be created in a conducive environment, which can make the staff dedicated towards the organization and its objectives. In reality the man is more important than machine as it is the human which could get maximum out of machine to keep a happy customer. However, most organizations give little importance to this very important asset. Various aspects related to human resource of National Bank of Pakistan are critically examined in the following text:

Selection & Recruitment

Although the Bank believes in merit but in practice the selection of employees is not done on merit. Most of the employees are low educated. This shows that candidates with some strong family background or political pressure are given preference in recruitment and qualified candidates are sometimes left behind.

Job for Life

Like the employee of public sector organizations in Pakistan, the employees OF FWBL also enjoy their job for life. Since there is no risk of early retirement or redundancy in rank, they do not perform with their full potentials. This is one redundancy in rank, they do not perform with their full potentials, and this is one of the reasons responsible for the low productivity of the employees of the Bank.

Performance Appraisal
The performance of employees of the Bank are appraised though their annual confidential reports at the end of each year. This has become an outdated method of performance appraisal and no longer used due to the following reasons:

1. The performance of employees is evaluated after quite a long time. 2. Element of subjectivity is involved in this method. 3. Employees participation is not ensured in the process of evaluation. 4. Objectives of employees are not quantified.

Inter Personal Relationship

Modern management acknowledges human resources as one of the most important assets of an organization. But by their very nature, human beings are also the most unpredictable. Where a number of persons work together, interactions among them, of necessity, will lead to conflicts and FWBL is no exception. Most interpersonal conflicts in FWBL can be traced back to the following major heads. Lack of Communication reasons for conflict. Not only it is due to the failure to send a massage but to an interpretation given to the massage by the receiver is different from that intended.

Diversity in Values
Diversity in values, perceptions, cultural background and life-style is another reason responsible for inter personal conflicts in NBP. Different values and perceptions about the same issue, event or personality hinder understanding. When things come to such a pavement, therefore, interpersonal conflicts are generated. The dominant trend in all modern industrial societies of the world is merit and expertise, which helps promote cohesion and reduce conflicts. But the feudalistic mindset is still very strong in our set up and there is no tradition of tolerance for differing viewpoints. Hence, interpersonal conflicts are generated.

Corruption
Our social acceptance of corruption gives rise to corruption at every level of social and organizational set up. Corruption involves financial embezzlement, favoritism, nepotism, cronyism and other number of such practices. All these cause resentment that keep building up and lead to conflict sooner or later. In the past few years, some cases of frauds have happened in different branches. The reasons can be linked with the employee dissatisfaction of FWBL.

Discipline & Authority

Maintaining discipline and implementation of authority (tables) in letter and spirit is the key to success of any organization. In FWBL, The authority tables are not strictly maintained. Line managers are not fully equipped with the authority with no vertical or horizontal interference.

6. DEPOSIT DEPARTMENT: It controls the following activities: a) A/C opening. b) Issuance of cheque book. c) Current a/c d) Saving a/c e) Cheque cancellation f) Cash

Account opening
The opening of an account is the establishment of banker customer relationship. Before a banker opens a new account, the banker should determine the prospective customers integrity, respectability, occupation and the nature of business by the introductory references given at the time of account opening. Preliminary investigation is necessary because of the following reasons. i. Avoiding frauds ii. Safe guard against unintended over draft. iii. Negligence. iv. Inquiries about clients. There are certain formalities, which are to be observed for opening an account with a bank. Formal Application Introduction Specimen Signature Minimum Initial Deposit Operating the Account

a)Qualification of Customer
The relation of the banker and the customer is purely a contractual one; however, he must have the following basic qualifications. He must be of the age of majority. He must be of sound mind. Law must not disqualify him. The agreement should be made for lawful object, which create legal relationship Not expressly declared void.

b)Types of Accounts

Following are the main types of accounts 1) Individual Account 2) Joint Account 3) Accounts of Special Types 1 Partnership account 2 Joint stock company account 3 Accounts of clubs, societies and associations 4 Agents account 5 Trust account 6 Executors and administrators accounts 7 Pak rupee non-resident accounts 8 Foreign currency accounts1
9

Current account
These are payable to the customer whenever they are demanded. When a banker accepts a demand deposit, he incurs the obligation of paying all cheques etc. drawn against him to the extent of the balance in the account. Because of their nature, these deposits are treated as current liabilities by the banks. Bankers in Pakistan do not allow any profit on these deposits, and customers are required to maintain a minimum balance, failing which incidental charges are deducted from such accounts. This is because the depositors may withdraw Current Account at any time, and as such the bank is not entirely free to employ such deposits. Until a few decades back, the proportion of Current Deposits in relation to Fixed Deposits was very small. In recent years, however, the position has changed remarkably. Now, the Current Deposits have become more important; but still the proportion of Current Deposits and Fixed Deposits vary from bank to bank, branch to branch, and from time to time.

Saving account
Savings Deposits account can be opened with very small amount of money, and the depositor is issued a cheque book for withdrawals. Profit is paid at a flexible rate calculated on six-month basis under the Interest-Free Banking System. There is no restriction on the withdrawals from the deposit accounts but the amount of money withdrawn is deleted from the amount to be taken for calculation of products for assessment of profit to be paid to the account holder. It discourages unnecessary withdrawals from the deposits. In order to popularize this scheme the State Bank of Pakistan has allowed the Savings Scheme for school and college students and industrial labor also. The purpose of these accounts is to inculcate

the habit of savings in the constituents. As such, the initial deposit required for opening these accounts is very nominal.

Issuing of cheque book:

This department issue cheque books to account holders. Requirements for issuing cheque book a) The account holder must sign the requisition slip b) Entry should be made in the cheque book issuing book c) Three rupees per cheque should be recovered from a/c holder if not then debit his/her account.

Cheque cancellation:
This department can cancel a cheque on the basis of; a) Post dated cheque b) Stale cheque c) Warn out cheque d) Wrong sign etc

FOREIGN EXCHANGE/DEPARTMENT
This department mainly deals with the foreign business. The main functions of this department are: a) L/C dealing. b) Foreign currency accounts dealing. c) Foreign Remittance dealing.

L/C dealing
FWBL IS committed to offering its business customers the widest range of options in the area of money transfer. If you are a commercial enterprise then our Letter of Credit service is just what you are looking for. With competitive rates, security, and ease of transaction, FWBL Letters of Credit are the best way to do your business transactions.

Foreign currency account dealing

This department deals with the foreign currency accounts which mainly include dollar account, euro

account etc.

Foreign Remittance dealing

This is very important function of this department.

Cash
This department also deals with cash. Payment of cheques, deposits of cheques etc.

10. Plan of your internship program

a. A brief introduction of the branch where you did your internship

As part of the academic requirement for completing MBA (Banking and Finance) Master .Business Administration of the students are required to under go six weeks of internship with an organization. The internship is to serve the purpose of acquainting the students with the practice of knowledge of the discipline of banking administration. This report is about First Women Bank Limited. FWBL was established in 1989 and since then, it has expended its network, becoming the largest women Bank of the country.

Purpose of the Studies

The main of the study in hand is together relevant information to compile internship report on FWBL. To observe, analyze and interpret the relevant data competently and in a useful manner. To work practically in an organization. To develop interpersonal communication.

Scope of Studies
As an internee in First Women Bank Limited the main focus of my study research was on General banking procedures in one of the branches of First Women Bank Limited. These operations include Remittances, deposits, advances and foreign exchange. Similarly different aspects of overall of FWBL are also covered in this report.

Research Methodology
The report is based on my two months internship program in FIRST WOMEN Bank of Pakistan. The methodology reported for collection of data is primary as well as secondary data. The biggest source of information is my personal observation while working with staff and having discussion with them. Formally arranged interviews and discussions also helped me in this regards.

Primary data: Personal observation Interviews of staff Secondary data:

Manuals Journals Magazine Annual reports Internet

b. Starting and ending dates of your internship

The duration of my internship was from 16-06-2009 to 30-05-2009. During this period I learnt much, the previous views about banking was changed and I was able to work in the bank with hard work. Before going there I was not much interested in banking work but after this I have developed the respect for bankers. They are really playing a big/ vital role in our economy.

c. Names of the departments in which you got training and the duration of your training

Details of departments during the internship program Name of departments Tokens and cheques interpretation Clearings I.T Remittances From(dates) 16-04-2009 25-04-2009 05-05-2009 19-05-2009 To (dates) 24-04-2009 04-05-2009 18-05-2009 30-05-2009

During my period of internship, the following assignments were assigned to me:

1.From 16-04-2009 to 24-04-2009 To receive the cheques from clients, check the date and tally the amount in figures and words then take the signature of the bearer at the back of the cheque. After that assign a token number on the cheque and hand over the relative token to the client for payment and forward the cheque to the CD/SB in charge Mrs. Naheed firdous for further process. 2.From 25-04-2009 to 4-05-2009

After that I was assigned the work of accounts as an assistance of Mrs. Naheed firdous. In this department I have learn about the clearing process. How to receive cheques for clearing, and how to make clearing for NIFT. Also I have learned some matters of account opening.
3.From 05-05-2009 to 18-05-2009

I have also assigned the work of I.T as assistance of Miss Humaira nazli. I have learned how to start and end the day, how to post the utility bills, how to make collection vouchers and how to post them.
4.From 19-05-2009 to 30-05-2009 Spending sufficient time there, the next task which was assign to me was remittances matters. Fill the DD, MT, TT application form, make them, enter in the relevant books etc

10.Training program

a.Detailed description of the operations/activities performed in the department(s) I worked in

I have attended internship from 16-04-2009 to 30-05-2009. During this period I have given orientation in cash, accounts, clearings, and remittances. The brief description of each department is given below.
DEPARTMENTATION OF FWBL Gujrat branch in which I work Dividing an organization into different parts according to the functions is called departmentation. So FWBL gujrat branch is divided into two main parts. 1. Cash Department 2. General Banking Department.

Cash Department:
Cash department mainly deals in cash. The Head of department is miss humaira nazli and two cashier nasreen mushtaq and saiqa munawer The objective of cash department are: To facilitate people in the payments of their bills and taxes and repayments of cash There are two main functions of cash department. i. Payment ii. Receipts i. Payments are the function that they pay their cheques and pay cash. ii. Receipts mean collection of utilities bills, taxes etc. Receipt The money, which either comes or goes out from the bank, its record should be kept. Cash department performs this function. The deposits of all customers of the bank are controlled by means of ledger accounts. Every customer has its own ledger account and has separate ledger cards. Payments It is a bankers primary contract to repay money received for this customers account Usually by honoring his cheques. The Requisites of Cheque There is no prescribed form of words or design of a Cheque, but in order to fulfill the

Requirements mentioned in Section 6 above the Cheque must have the following. a) It should be in writing b) The unconditional order c) Drawn on specific banker only d) Payment on Demand e) Sum certain in money f) Payable to a specific person g) Signed by the drawer Parties to Cheque The normal Cheque is one in which there is a drawer, a drawee banker and a payee, or no payee but bearer. a) The Drawer b) The Drawee c) The Payee Types of Cheques Bankers in Pakistan deal with three types of cheques a) Bearer Cheques Bearer cheques are cashable at the counter of the bank. These can also be collected through clearing. b) Order cheque These types of cheques are also cashable on the counter but its holder must satisfy the banker that he is the proper man to collect the payment of the cheque and he has to show his identification. It can also be collected through clearing. c) Crossed Cheque These cheques are not payable in cash at the counters of a banker. It can only be credited to the payees account. If there are two persons having accounts at the same bank, one of the account holder issues a cross-cheque in favour of the other account holder. Then the cheque will be credited to the account of the person to whom the cheque was issued and debited from the account of the person who has actually issued the cheque.

Cheques payment It is a bankers primary contract to repay money received for his customers account usually by honoring his cheques. Payment of money deposited by the customer is one of the root functions of banking. The acid test of banking is the receipt of money etc. from the depositors, and repayment to them. This paying function is one, which is the distinguishing mark of a banker and differentiates him from other institutions, which receive money from the public. However the bankers legal protection is only when payment is in Due Course. The payment in due course means payment in

accordance with the apparent tenor of the instrument, in good faith and without negligence to any person in possession thereof under circumstances, which do not afford a reasonable ground of believing that he is not entitled to receive payment of the amount therein mentioned. It is a contractual obligation of a banker to honor his customers cheques if the following essentials are fulfilled. a) Cheques should be in a proper form: b) Cheque should not be crossed: c) Cheque should be drawn on the particular bank: d) Cheque should not mutilate: e) Funds must be sufficient and available: f) The Cheque should not be post dated or stale: g) Cheque should be presented during banking hours:

General Banking
In this section of the bank the general banking function is performed. It is divided into five departments. 1Remittances Department. 2Computer Department. 3Advances Department. 4Clearing Department. 5Establishment Department. Remittances Department: This department is header by Mrs. Naheed firdous a very competent person. The objective of this department is: To transfer the money of people from one place to another place in safe and comparable way The main functions of this department are: i. Issuing of demand draft. ii. Issuing of Mail transfer. iii. Issuing of Telegraphic transfer. iv. Issuing of payment order. v. Issuing of call deposit. vi. Pension payments etc. vii. Closing and scrolling of government collections. Issuing of cheque book: This deptt issue cheque books to account holders. Requirements for issuing cheque book a) The account holder must sign the requisition slip b) Entry should be made in the cheque book issuing book c) Three rupees per cheque should be recovered from a/c holder if not then debit his/her account.

Advances department: Every bank has a department, which advances money to borrowers. In FWBL gujrat branch the advances department is head by the miss azmmat bibi the sub manager of the branch and Operation Manager Both are very competent persons. The objective of Advances Department is To facilitate people by giving short term and long term loans on easy terms and conditions. The main function of this Department is to take surplus money from the people at low rates and lend this money to borrowers at high rates to earn profit.

Clearing Department: A clearinghouse is an association of commercial banks set in State Bank of Pakistan for the purpose of interchange and settlement of credit claims. Clearing proceeds through NIFT In FWBL gujrat Branch this department is headed by Mrs. naheed firdous having Of about thirty years. The objective of this department is to To facilitate customers for payment their Cheques of other banks. Two type of clearing books are maintained. I. In word clearing books: The bank uses this book for the purpose of recording all the cheques that are being received by the bank in the first clearing. All detail of the cheques are recorded in this book. ii. Out word clearing book: The bank uses outward clearing register for the purpose of recording all the details of the cheques that the banks have delivered to other banks. Computer Department: This department headed by the accountant and two other persons are performing the real function. The objective of this Department is to facilitate customers in payment of their cheques. The main functions performed by this department are: a) Checking balance. b) Deduction from balance on clearing cheques. c) Issuing bank statements. d) Dealing Western Union. Establishment Department: FWBL gujrat Branch having an Establishment Department. This Department is controlled by Manager Shakira Mirza very competent and experienced person. This department mainly deals with the branch employees. The main objective of this department is to

To regulate bank business Main functions of this department are: a) Keeps the record of attendance of employees. b) Employees salaries distribution. c) Employees bonuses etc.

b. Detailed description of the tasks assigned to you.

During my period of internship, the following tasks were assigning to me
5.To receive the cheques from clients, check the date and tally the amount in figures and words then take the signature of the bearer at the back of the cheque. After that assign a token number on the cheque and hand over the relative token to the client for payment and forward the cheque to the CD/SB in charge Mrs. Naheed firdous for further process. 6.After that I was assigned the work of accounts as an assistance of Mrs. Naheed firdous. In this department I have learn about the clearing process. How to receive the cheques for clearing, and how to make clearing for NIFT. Also I have learned some matters of account opening. 7.I have also assigned the work of I.T as assistance of Miss Humaira nazli. I have learned how to start and end the day, how to post the utility bills, how to make collection vouchers and how to post them. 8.Spending sufficient time there, the next task that was assigning to me was remittances matters. Fill the DD, MT, TT application form, make them, enter in the relevant books etc

12. Structure of the Finance Department a. Departmental hierarchy

Charmaine Hidayatullah Head of Legal & Security, EVP Ms. Charmaine Hidyatullah joined the First Women Bank Ltd in 1989 as Legal Advisor and Chief of Legal Department. She also remained Federal Nominee Director of FWBL from 1991 to

1994. In 1994 she was promoted to the cadre of SVP, since then she held several important portfolios such as Member of Executive Committee, Head of Business Centre, Head of Security Department, Head of Publicity and Public Relations and Head of Human Resources Department. She plays the key role in recovery of stuck-up finances of the Bank through Court and negotiations with defaulting Borrowers/ Judgment Debtors, Syndicate Financing, and matters pertaining to legal operations of the bank. She has done her Masters in Law from S. M. Law College, Karachi and specializes in Company Law. She started her career as a practicing Lawyer in Civil and High Courts of Sindh where she conducted several independent cases related to Banking, Corporate and Civil Law in the Courts and Banking Tribunals. She served as Legal Advisor for various domestic and foreign companies. Since 1981, she is also Vice President Status of Women of United Nations Section of all Pakistan Women Association. She has also served as Honorary General Secretary of Pakistan Red Crescent Society appointed by Government of Pakistan. Shahid Siddique Amjad Mughal Head of Finance & Planning Mr. Shahid Mughal joined First Women Bank Ltd., in February 2002. He is the Head of Finance & Planning/ CFO & Company Secretary. He is also member of the Executive Committee, IT Steering Committee and ALCO. He plays a pivotal role in strengthening the financial discipline, internal controls systems and in formulating policies and procedures for various activities. He was awarded as Best Executive for two consecutive years. Mr. Shahid Mughal is a Chartered Accountant, an Associate Member of the Institute of Chartered Accountants of Pakistan and Fellow Member of the Institute of Corporate Secretaries of Pakistan. He started his banking career in 1992 from Emirates Bank International in Internal Audit Pakistan, where he went up to the position of Manager Internal Audit Pakistan. In between, he was also the Manager Operations for EBI Sialkot Branch. In 1997 he was awarded by EBI as the Best Employee of the Year. Tauqir A. Siddiqui CIO & Head of Information Technology Mr. Tauqir A. Siddiqui has joined First Women Bank Ltd in the 2007 as a CIO and Head of information Technology and is a member of Banks Executive Committee. He is an MBA and has done various certifications from local and international Universities and organizations. Mr. Tauqir is responsible to provide the leadership and management for all information technology services and operations and participates in the formation of IT policies and procedures by making appropriate recommendations for improvements and additions that enhance the efficiency and effectiveness of the information technology services and operations to support the mission of the bank. He is responsible for infrastructure set up, and centralized control of core banking application, handling of SWIFT, RTGS, ASA Firewall, support of ATMs, Phoenix and ATM Switch, set up of Email Domain server, eCIB, development of DRP and building of I.S Security Policy and its implementation structure, etc.

For bringing the bank as technology leader, Mr. Siddiqui has planned for restructuring of the FWBL set up for high availability, secure network admission, day zero protection, IP Video Conferencing, Security Monitoring and response system and effective management of infrastructure along with anti-spam solution. The visionary IT Head; Mr. Tauqir A. Siddiqui and his dynamic team have done a commendable and excellence job, especially in view of non-existence of MIS in 2001. The launch of all above services has been extended in the last three years, which brought the bank in the fore front of technology. This enables our customers for Anywhere Banking to use their accounts all our branches and 3000 ATMs across the country. Naushaba Shehzad
o

Dy. Head Credit Ms. Naushaba Shehzad has dual responsibilities with the Bank. She is the Head of Financial Services Division and is also handling the Credit Portfolio of all Corporate Branches. She is also member of the Banks Executive Committee and Executive Credit Committee, and plays an active role in the policy-making arena. She has diversified Banking experience of 15 years with First Women Bank limited. She was awarded the Best Employee of the Year award in 2001, and Best Executive award for the next two consecutive Years. She is a Graduate of Lahore College for Women, and has an outstanding academic career, attaining Gold Medal in Masters of Sciences (MSc)-Statistics in 1988 and awarded with National Youth Talent Appreciation Award in 1991.

Mustansir Rao Treasurer Mr. Mustansir Rao joined FWBL in July 2002 as a Senior Vice President & Treasurer, and is a member of ALCO. He has 20 years of experience in Treasury business in Pakistan & the Gulf Region. Mr. Rao started his banking career in 1978 with HBL. In 1982 he joined Bank of Credit and Commerce Intl, Abu Dhabi-UAE in the Treasury Portfolio Management Division. He moved to National Investment & Securities Corp (NISCORP), Abu Dhabi-U.A.E in 1989 as Settlement Manager. In 1992 he joined Bank Al Habib Ltd., Karachi as Manager Treasury, where he was responsible for Forex & Money Market dealings. Before FWBL, he was Chief Dealer Treasury at Prime Commercial Bank Ltd, which he joined in 1995 and served for 7 years. He has done his Masters in Commerce.

Mr. Abdul Ghafoor Head of HRD

b. Number of employees working in the Finance department

The numbers of employee are not constant; they vary according to tasks and network increases. The all staff of the FIRST WOMEN BANK LIMITED is engaged in the financial working. All staff is considered as financial staff .the changes in staff during periods are shown below. 2000 2001 2002 2003 2004 2005 2006 2007 Variance since 2000 11%

No of 484 employees

484

496

524

507

513

531

535

c. Finance & accounting operations

First Women Bank Ltd. has been recognized by CIDA as a unique institution catering to the special needs of women in Pakistan. FWBL and CIDA have entered into a 3 years collaboration to provide financial assistance for the two important directions of the Bank i.e. setting up of Financial Services Desks and Training and Capacity Building of FWBL employees. Financial Services Desks, based in Karachi, Islamabad and Lahore, are facilitating women's access to financial services by providing support in the areas of credit management, legal counselling, tax consultancy and marketing. Through CIDA's assistance in Capacity Building of FWBL, a total number of 94 FWBL bankers have been trained at the Institute of Bankers, Pakistan and are serving the women of Pakistan in the most effective manner.

How FWBL banks operate: how they obtain their funds from agents who want to lend and channel those funds to agents who want to borrow. In the process of doing this, the chapter introduces us to a valuable analytic device Called a T-account. T-accounts will prove useful, not only in this part of the course on banking, but also in the next part of the course that looks at the money supply process. Finally, helps us identify and understand four basic principles of bank management: liquidity management, asset management, liability management, and capital adequacy management. 1. The Bank Balance Sheet Liabilities (Sources of Funds) Assets (Uses of Funds) 2. Basic Operation of a Bank: T-accounts 3. General Principles of Bank Management Liquidity Management Asset Management Liability Management Capital Adequacy Management In our overview of the financial system, we briefly considered the role that banks play in channelling funds from agents who have saved funds and want to lend to agents who need funds and want to borrow. We also identified the main sources and uses of funds that banks have.

13. Functions of the Finance Department

FINANCIAL ANALYSIS
Financial analysis, though varying according to the particular interests of the analyst, always involves the use of various financial statement primarily the balance sheet and income statement. The balance sheet summarizes the assets, liabilities, and owners equity of a business at a point in time, and thee income statement summarizes revenues and expenses of the over a particular period f time. A conceptual framework for financial analysis provides the analyst with an interlocking means for structuring the financing.

b. Finance system of the organization

The financial system of the FWBL is very strong. It takes the deposits from the clients and gives advances to the clients. The deposits rates are lower than advances rates; the difference between these rates is the profit of the organization. The organization is maximizing their profits in days. Women s is succeeding in every field of banking.

c. Use of electronic data in decision making

Accounting system
The bank use electronic data in decision-making. For daily records special software says AUTOBANKER is used. Every daily transaction is recorded in the auto banker, and after all transactions, the process of day end is preceded. The AUTOBANKER helps in balancing the daily transactions. The process of day end cannot be preceded, without balancing the daily transactions. Auto banker also keeps records of every transaction and statements, which wee can be used for many purposes. We can print out the clients statements and bank balance sheet, daily affairs, profit and loss, and many others

d. Mobilization of funds
The funds are mobilized electronically through DD, TT, PO, MT documents.
a) Demand Draft b) Telegraphic Transfer c) Pay Order d) Mail Transfer Demand Draft Demand draft is a popular mode of transfer. The customer fills the application form. Application form includes the beneficiary name, account number and a senders name. The customer deposits the amount of DD in the branch. After the payment the DD is prepared and given to the customer. FWBL officials note the transaction in issuance register on the page of that branch of FWBL on which DD is drawn and will prepare the advice to send to that branch. The account of the customer is credited when the DD advice from originating branch comes to the responding branch and the account is debited when DD comes for clearance. DD are of two types. a) Open DD: Where direct payment is made. b) Cross DD: Where payment is made though account.

FCHARBLGES FOR DD5 I. Up to Rs. 50,000/- is Rs 50/- only II. Over Rs. 50,000/- is 0.1% Pay Order Pay order is made for local transfer of money. Pay order is the most convenient, simple and secure way of transfer of money. FWBL takes fixed commission of Rs. 25 per pay order from the account holder and Rs. 100 from a non-account holder. Telegraphic Transfer Telegraphic transfer or cable transfer is the quickest method of making remittances. Telegraphic transfer is an order by telegram to a bank to pay a specified sum of money to the specified person. The customer for requesting TT fills an application form. Vouchers are prepared and sent by ordinary mail to keep the record. TT charges are taken from the customer. No excise duty is charged on TT. The TT charges are: Telegram/ Fax Charges on TT = Actual-minimum Rs.125. Cable telegram transfer costs more as compared to other title of money. In cable transfer the bank uses a secret system of private code, which is known to the person concerned with this department and branch manager. Mail Transfer When the money is not required immediately, the remittances can also be made by mail transfer (MT). Here the selling office of the bank sends instructions in writing by mail to the paying bank for the payment of a specified amount of money. Debiting to the buyers account at the selling office and crediting to the recipients account at the paying bank make the payment under this transfer. NBP taxes mail charges from the applicant where no excise duty is charged. Postage charges on mail transfer are actual minimum Rs. 40/- if sent by registered post locally Rs.40/- if sent by registered post inland on partys request.

e. Generation of funds
FUNDS ARE GENERATED THROUGH DIFFERENT TYPES OF ACCOUNTS.
Following are the main types of accounts 1) Individual Account 2) Joint Account 3) Accounts of Special Types 1 Partnership account 2 Joint stock company account 3 Accounts of clubs, societies and associations 4 Agents account 5 Trust account 6 Executors and administrators accounts 7 Pak rupee non-resident accounts

8Foreign currency accounts

f. Sources AND ALLOCATION of funds

Liabilities (Sources of Funds)

Checkable Deposits: Checkable deposits are deposits in bank accounts that allow their owners to write Checks. Checkable deposits include: Demand deposits = checking accounts that pay no interest. Negotiable Order of Withdrawal (NOW) accounts = checking accounts that pay Interest. Money Market Deposit Accounts (MMDAs) = high-yielding deposit accounts that allow limited check-writing privileges.

Unlike demand deposits and NOW accounts, MMDAs are not included in M1 and are not subject to reserve requirements. Checkable deposits are payable on demand: if the depositor requests a withdrawal or writes a check, the bank must pay immediately. Checkable deposits are a banks lowest-cost source of funds, since depositors are willing to accept a lower interest rate in exchange for the convenience of being able to write checks. But checkable deposits are also costly to maintain: the bank must process the checks, prepare monthly statements, maintain bank branches, etc. Nontransaction Deposits: Owners cannot write checks on no transaction deposits. But they pay higher interest rates than checkable deposits. No transaction deposits include: Savings deposits = funds can be withdrawn, without penalty, at any time. Small (under $100,000) time deposits (certificates of deposit or CDs) = have a fixed maturity, with penalty for early withdrawal. Large (over $100,000) time deposits (CDs) = also have a fixed maturity date, but they are negotiable, meaning that they can be resold in a secondary market. Borrowings: Borrowings include: Borrowings from the Federal Reserve = discount loans.

Borrowings from other banks = federal funds. Borrowings from non-bank corporations = repurchase agreements. Bank Capital: As noted above: Capital = Assets - Liabilities = Net Worth. And as well see below, bank capital is a cushion against a drop in the value of the banks assets, since the bank becomes insolvent (bankrupt) if the value of its assets falls below the value of its liabilities (i.e., it owes more than it can repay).

Assets (Uses of Funds)

Reserves: Reserves include: The banks deposits at the Federal Reserve. Vault cash = currency that is physically held by the bank. Reserves do not pay interest. Required reserves: By law, the bank must hold a certain fraction (10%) of every dollar of checkable Deposits (more precisely, demand deposits and NOW accounts) it receives as reserves. 10% = required reserve ratio. Excess reserves = additional reserves held by the bank to meet its customers requests for withdrawals. Cash Items in the Process of Collection: A check that had been deposited at the bank, but not yet collected from the check Writers bank is a cash item in the process of collection. Deposits at Other Banks: Many small banks hold deposits at larger banks. In return, the large banks provide services such as check collection and help with securities

purchases. This relationship between large and small banks is called correspondent banking, and is less important today than in was years ago, when check collection and securities transactions were considerably more difficult. Securities: Securities include: US government and US government agency securities, State and local government (municipal) securities. By law, banks can only hold debt instruments; they cannot own equities. Because they are default-free and highly liquid, a banks holdings of short-term US government securities (Treasury bills) are sometimes call its secondary reserves. Loans: Loans include: Commercial and industrial loans Real estate loans (mortgages). Consumer loans Interbank loans.

14. Financial Statement Analysis

Financial analysis is the process of identifying the financial strengths and weakness of the firm by properly establishing relation ship between the items of balance sheet and profit and loss account, in order to make rational decision in keeping with the objective of the organization, for that purpose the management use analytical tools. To evaluate the financial condition and performance of the business entity, the financial analyst needs to perform "checkups" on various aspects of the business financial health. A tools frequently used during these checkups is a financial ratio analysis, which relates two piece of financial data by dividing one quantity by the other we calculate ratios because in this way we get a comparison that may prove more useful than the raw number by themselves. The business itself and outside providers of capital (creditors and investors) all undertake financial statement analysis. The type of analysis varies according to the specific interest party involved. The nature of analysis is depending at the purpose of analyst.

2004 Current Ratio = Current Assets = 9380868 = 1.05:1 Current Liabilities 8974472 Current Assets = 567888+215845+3263159+3684825+1649124 Current Liabilities = 71573+213150+8689749 2005 Current Assets = 10147405 = 1.05:1 9629741 726003+295110+1313119+5351075+2462098 =

Current Liabilities = 67406+846150+8716185 2006 8642169 = 1.24:1 6965378 Current Assets = 705703+301056+1431628+3137533+3066249 Current Liabilities = 62057+931520+6965378 2007 = 8662596 = 1.11:1 7783923 Current Assets = 809657+384792+1245000+3159640+3063507 Current Liabilities = 193321+21543+7569059 =

2004 Acid Test Ratio = 2005

Acid Test Assets Current Liabilities

9380868 = 1.05:1 8974472

= 2006

10147405 = 1.05:1 9629741

Acid Test Ratio = Current Assets - closing Stock prepaid Expenses = 2007 = Working Capital = Current Assets - Current Liabilities 2004 = 9380868 8974472 = 2005 2006 2007 = 10147405 9629741 = 8642169 6935378 = 8662596 7783923 = = = 8662596 = 1.11:1 7783923 406396 517664 1706791 878673 8642169 = 1.24:1 6965378

Sales to Working Capital 2004 2005 2006 2007

Sales Working Capital = = = = 432986 = 1.07:1 406396 478527 = 0.92:1 517664 540796 = 0.32:1 1706791 578072 = 0.66:1 878673

Debt Equity Ratio 2004

Debt Equity/ Share holder fund =

213150 = 0.52:1 407292 Shareholder Fund = Capital + Reserve + Surplus - Deferred Exps. = 283650+ 115857 + 21800 14015 2005 2006 2007 = = = 846150 = 1.95:1 433795 931520 = 1.08:1 863943 21543 = 0.02:1 1028110

Debt to tangible Net worth Ratio = 2004 2005 2006

Long term Debt Tangible net worth 213150 = 1.71:1 124324 = 846150 = 6.33:1 133601 = 931520 165910 = 5.61:1 =

2007

= 21543 157887 Fixed Assets Fixed Liabilities = 81621 213150 = 79955 846150 = 153060 1799999 = 148686 1049659

= 0.14:1

Fixed Ratio = 2004 2005 2006 2007

= 0.38:1 = 0.09:1 = 0.085:1 = 0.14:1

Long Term Asset v/s Long term debt = Long term Assets Long term Debt 2004 2005 2006 2007 = 81621 = 0.38:1 213150 = 79955 = 0.094:1 846150 = 153060 = 931520 = 148686 = 21543 0.16:1 6.90:1

Debt Coverage Ratio = 2004 2005

Earning before Interest and tax Fixed interest charged = 432986 = 1.95:1 222277 = 478527 = 1.86:1 257907

2006 2007

= 540796 = 8.74:1 61874 = 578072 = 7.01:1 82485 Sales / Net Income Fixed Assets = 124324 = 1.52:1 81621 = 133601 = 1.67:1 79955 = 165910 = 1.08:1 153060 = 157887 = 1.06:1 148686 Net Profit x 100 Investment = 124324 x100 = 3.37% 3684852 = 133601 x100 = 2.50% 5351075 = 165910 x100 = 5.29% 3137533 = 157887 x100 = 5.00% 3159640

Sales to Fixed Assets = 2004 2005 2006 2007

Return on Investment = 2004 2005 2006 2007

Return on Total equity = 2004

Net Profit x 100 Equity = 124324 x100 = 29.51% 421307

2005 2006 2007

= 133601 x100 = 29.65% 450635 = 165910 x100 = 19.10% 868479 = 157887 x100 = 18.18% 868479

Comments on 3 years RATIO ANALYSIS

1Cash Ratio: This ration is obtained by dividing cash by current liabilities / liabilities. This ratio shows that the cash is enough for payment of current liabilities or not. It is calculated as cash Ratio=Cash/current liabilities It means that how much cash is available for payment its current liabilities. This ratio of FWBL shows a downward trend. Because of high advances cash is less to cover its current liabilities. 2Gross Profit Margin Ratio: This ratio shows the profit margin in sales/ revenue. This is calculated as. Gross profit/ interest earned G. profit margin relates profit of the organization to its sales (interest earned in case of Bank). From calculation it is very much clear that the gross profit margin ration have upward trend which shows that how much they using their deposits to earn interest. This show the profit of the firm relative to its revenue. It is a measure of the efficiency of the firms operations too. As it is clear that the ratio gong high this is the indication of good performance 3Net Profit Margin: Explanation: from the calculation and graph it is very much clear that the performance of FWBL is very good. And the trend is upward. It tells us a firms net income per rupee of revenue. As the trend

is upward it shows the high profits in revenue per rupee in case of FWBL. It is because of high advances the NBP has given to the people. 4Return on Equity: Dividing profit after taxation by share holders equity. ROE compares net profit after taxes to the Share holders Equity. Explanation: from the calculation it is clear that the ROE Ratio have an upward trend of FWBL. It is because of high net profit they have earned. It tells us the earning power on the shareholders investments. It is because of high investments by FWBL and effective expense management.

5Return On Assets: From calculation it is clear that this ration of FWBL is going high and high. It shows that FWBL using its assets very efficiently. That is why they are earning very high profits. This shows that how efficiently they investing the assets thats why they are earning high profits

VERTICAL AND HORIZONAL ANALYSIS OF THE ORGANIZATION

FUNCTIONAL ANALYSIS Formal Organization Formal organization includes the activities of two or more person, which are cautiously determined groups and coordinated towards a given objective. It provides base when people are able to communicate with other, when they have common purpose and they are willing to work. In FWBL, we find a formal organization. Bernard referred to an organization as a formal when the activities of two or more persons are coordinated towards a given objective. Difference between theory and practice A vast difference exists between theory and practice an FWBL has written procedure but practical work done by employees is a bit different from written procedures. Bank duty to maintain secrecy They dont care about maintaining secrecy, especially during the rush hours. They speak loudly about the account position and while getting clearance of cheque the person can easily get the whole information from the ledge. The deposit clerk must be careful while passing any cheque. In this regard another shortfall is in giving the information about the balance on telephone. Excessive paper work It is notified that due to the lengthy procedure of paper work the bank employee are over burdened.

They are unable to give proper attention to the clients and face difficulties in getting their job done. One reason for lengthy procedure and excessive paper work in the bank is the lack of computerized technology. More accounts fewer deposits. Efficient banking is one, which does not emphasize on number of accounts but on greater amount of deposits. FWBL is more interested in increasing its number of account irrespective to its deposit. The main reason behind it is that bank does not provide personalize service to all the account holders and does not improve its quality and services

Delegation of authority Manager has very limited authority; he has to take the approval from his management authority i-e. In case of advance he has to take the approval of general and regional manager. The other problem is created, when the manager is not present in his office, the customer have to wait for hours. This discourages both customer and officers because they have to suffer a lot ADMINISTRATIVE ANALYSIS Job analysis is not effective Only on the basis of job analysis it can be decided how a right person can be hired, trained, compensated or promoted. It is very important for an organization that nature of the job is described and job specifications are mentioned. Most of the employees are simple graduate and do not have proper background about their job. This creates problems both for organization and for the employees. IN FWBL salaries are given according to the seniority and grades. People with simple or complex responsibility are getting the same salary and facilities. This creates dissatisfaction among employees. Carelessness in opening of account When customer comes to open an account, the staff does not bother to check his/her place phone number and permanent address. It is important because in case of overdraft by mistake or anything which places his account in debit it will be difficult to trace him. On the other hand he may be involved in any fraudulent activities against the bank. In this case the bank will be in awkward position. Lack of specialized training FWBL does not provide adequate facility of specialized training to their staff. Training is generalized rather than specialized. As the worker finishes his training, he is inducted into a specific field without having great deal of knowledge about the field. In the Hayatabad branch the newly recruited employee training was not imparted, they all learned

things on the job. Low Profit Rates Most of the customers shifted their account to the National Saving Center because of the low rates of saving deposit discourages the customers. Bank should increase their profit rates to attract customers. Poor job rotation. There is absence of job rotation in FWBL GUJRAT branch. A person placed in one department remains their forever. It reduces career opportunities as well boredom and in the end results in career platueing. Job rotation is very important for employee especially for those who are newly recruited. The newly recruit should be rated in all department of the banking in order to get familiar with working of different departments so that when they get a responsible position they have know how of the whole system. Delays in Loan Advancement It has been observed that there are delays in sanctioning of cases form the head office, which results in customer dissatisfaction. PERSONAL MANAGEMENT ANALYSIS Need for better training program Need of training is greatly emphasized all around the world. Training of the personnel is part of human resource management. It has been noticed that the training program of FWBL is not adequate. Once the candidate is selected and placed on the respective job. It becomes essential to train him adequately for the task. They should learn new methods for motivating customers. Recruitment policy Human resources are the lifeblood of the organization. If the personnel are recruited Carefully they can become asset to the organization in the case of carelessness a liability on the organization. Bank is not following its recruitment policy properly due to favoritism, nepotism and political pressure. Both the top authority and staff union tries there best recruit their favorites, indulgence of political pressure add salt to the wounds. The persons selected through these channels are infantile and do not work for the betterment for the bank. Promotions Promotion in FWBL is purely on the basis of seniority, so the new young person having high qualification remains behind for quite a lot of time. Top management and staff union put pressure for the promotion of their favorites, which gives a sense of deprivation to the deserving employee and their efficiency is affected. As the concept of promotion is attached with better in terms of greater responsibility, more prestige, greater skills and increased rate of salary. Thus a better and impartial policy of promotion needs to be followed.

Transfer Transfer means when a person is shifted from one place to another place. It is done either that person is needed more on the other branch or for improving his skill variety. It is the policy of the Bank to transfer each employee 3 to 4 years. Marketing at desk Bank employee come in daily contact with many people who happen to deal with the casual remittance, travelers cheques, safe custody, pensioners, depositing license fee and variety of other functions and variety of other people with whom the Bank has no account or regular business relationship. The Bank employees are doing very little on their own to explore the possibilities of selling banking services to them as a marketing contributor. Lack of business communication There is no proper way to give information to their customer. To avoid this minor dissatisfaction and tension in the mind of customer, and deficiency of the service, it is recommended that the bank should provide brochures etc containing information in details. Some general information should be placed in information notice board on the entrance where customer can see it easily or it should be self-attractive. Analysis of the Business: Proper analysis of the business reports should be conducted before extending any type of loan. For this purpose professional training of the stuff member is required. Organizational Commitment It is suggested that employees working on daily wages basis should be given some benefits, which the other employees are getting. Their salaries must increase according to efficiency, performance and service. Managerial Leadership In the analysis, we have discussed the difficulties of the assistant in taking any initiative; therefore it is recommended that the assistants should he given special training to make them ready for the leadership. Credit Monitoring The credit department of the bank should carries out vigilant credit monitoring. They should ensure the proper payment of installments and the mark-up by the borrower. The staff members who have done all the paper work of the loan extension should perform the monitoring, as he/she will be having more information about the borrower. Extended Banking Hours The banking hours may be extended up to six, as being practiced by HBL opposite to it. Some of the

business community due to law and order situation are now reluctant to keep the fund in their premises and would want to depart with it. Therefore, City Branch may extend the night banking to cater to demand of this business community. The branch could also be opened to cater the requirements of this business community Limited staff: Housing and House Hold Goods loans Bank should initiate these loans because most of banks customers are middle class and they cannot afford to buy house or house hold goods at once by their own Avoiding Bad Debts Great care should be taking while extending the loan. Loans should be awarded against reasonable securities, where market value should be equal to the loan granted. Policies should be crafted in a way to ensure that no loan is extended on political pressure. SBP regulation for loan approval should be strictly followed. According to which the current ration of borrowers business must be 1:1 and the debt to equity ratio should be 60:40, means the liquidity position of business should be healthy.

b. Organization analysis in comparison with its industry (Or with its competitors)

COMPETITIVE ANALYSIS
Porters five forces model: This approach is widely used for competitive analysis. It is because of the high intensity of competition among companies there five main competitive forces. Rivalry among competitive firms: It is a very powerful force among the competitive forces the strategies pursued by one firm can be successful only to extent that they provide competitive advantages over the competitor. These competitive strategies may be lowering prices, best quality series. The FWBL offering very low charges and demand draft, telegraphy transfer, mail transfer and give other additional services to the customers and to the Nation. Because FWBL is a Womens Bank.

Potential entry of new competitors: Whenever new firms ca easily enters a particular industry, the competition increases. The gout restriction, tariffs, patents etc can stop new firm to enter into the business as per Banking industry is concerned this market is already very situated in Pakistan and there are banks with quality services and low charges. So there is no threat to FWBL from potential entry and FWBL is also a public sector bank because of that no other new bank not takes over it. Potential Development of substitute products: This is the third factor affecting the competitions. There may be some other product can be substitute the product of that industry. For example banks offering sawing schemes in Pakistan and these schemes are also offered by GPOs in Pakistan so they must compete them in this field. If they offer low rates than GPOs so people will go to deposit in GPOs. People concentration high rates so thats why sawing PLS accounts are more then current accounts. The next examples will ATM which substitute presenting cheques at counter and encash it. The FWBL is lacking in this field. It must improve in this field to compete the competitors. Bargaining Power of Suppliers: The bargaining power of supplier affects the intensity of competition, especially when there are a large number of suppliers. In case of banks the suppliers are customers they supply the money to banks. Now they must offer good services, quality, and safety. Low charges etc to customers. In this field FWBL is very good. B/C at offers good quality services to customers. They charge low charges on remittances. So thats it is competitions other banks. Bargaining Power of Consumers: When customers are concentrated or large, or buy in volume, their bargaining power represents a major force affecting intensity of competition. Now the number customers in Pakistan for banks are very high. Banks offering variety of products and services to their customers. FWBL have a large number of customs. Now it must offer good services and products to their customers to attract them to come to FWBL.

C. Future prospects of the organization

Future Contracts planned for a particular period etc Human resource management and development Several HRM and DI are planned for the future. The introduction of an automated HRIS will enable the effective tracking of all staff qualifications and experience, providing information for effective talent management, succession, planning and work life balance as another area of focus for the female workforce of the bank. Competency based learning initiatives will be introduced to develop skills of staff and will be cascaded throughout the bank. These initiatives will provide a solid foundation for the long term sustainability of the human resource assets of the bank. First women bank limited run and managed by the women, for the women of Pakistan, is committed to be the benchmark employer of women in the banking industry, with the best practice and the best financial services, in line with its vision. To be the lead bank for women: dynamic, adaptive and responsive to their special economic needs, offering the best financial services and the best banking practices. Information technology: The bank is committed to provide more resources for the implementation of new innovation in the field of information technology for the benefit of our valuable clientele. After the successful launch of the online banking, the bank is improving its IT system, automation of Head office would be completed soon. Further, it is planned to consolidate and build on the improved infrastructure by upgrading of core banking applications, offering new products, such as

14Phone banking 15Call center 16Internet banking 17Utility bills payments 18Point of sale terminals 19Debit cards, etc.

15. SWOT analysis of organization in the business sector

SWOT ANALYSIS SWOT analysis is an acronym that stands for strengths, weakness, opportunities, and threats SWOT analysis is careful evaluation of an organizations 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 organizations mission by: 1. Exploiting an organizations opportunities and strength. 2. Neutralizing it threats. 3. Avoiding or correcting its weakness. 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.

STRENGTHS:
1OLDEST INSTITUTION: FWBL in one of the oldest bank of Pakistan and first Women bank Hence its customer base is strength from this plus point as customers have more confidence in the bank. The additional value services as the privilege for the bank.

2ALTERNATE DUTIES IN SBP ABSENCE The FWBL performs additional services for its customers as well as the other bank customer in the absence of SBP. 3MORE DEPOSITS THAN OTHER BANK FWBL has the relative competence in having more deposits than the other bank. This is because of the confidence the customer have in the bank. The bank being the privileged and oldest bank in banking sector of Pakistan enjoys this edge over all others, lacking it. 4EMPLOYEE BENEFITS The employers at FWBL are offered reasonable monetary benefit. Normally two bonuses are given Eid-Ul-Fitar & Eid-Ul-Azha. This serves as an additional benefit and competency for the bank and a source of motivation for the employees. 5BROAD NETWORK The bank has another competency i.e. it has broad-basses network of branches throughout the country also more than one branch in high productive cities. The customers are provided services at their nearest possible place to confirm customer satisfied. 6STRICTLY FOLLOWED RULES &REGULATION: The employees at FWBL are strict followers of rule & regulation imposed by bank. The disciplined environment at FWBL bolsters its image and also enhances the over all out put of the organization. 7PROFESSIONAL COMPETENCE The employees at FWBL here have a good hold on their descriptions, as they are highly skilled Professionals with background in business administration, banking, economics etc. These professional competencies enable the employees to understand and perform the function and operation in better way. 8HEALTHY ENVIROMNMENT The working condition in the FWBL branch here is very conductive and favorable for better output. The informal environment affects the performance of the employees in a positive way. 9RELATION BETWEEN STAFF AND OTHER EMPLOYESS The bank enjoys a good plus point when it comes to the employee manager relationship the hearing as removing of discrepancies if any, between the employees, and between the manager and employees.

WEAKNESSES
10LACK OF MARKETING EFFORT: The bank does not promote its corporate image, services, etc on a competitive way.Hence lacks far behind in marketing effort .A need for aggressive marketing in there in the era marketing in now becoming a part of every organization. 11FWBL UNDER POLITICAL PRESSURE

The strong political hold of some parties and government and their dominance is affecting the bank in a negative way. They sometime have to provide loan under the pressure, which leads to uneven and adjusted feeling in the bank employees. 12FAVORITISM AND NEPOTISM The promotions and bonuses etc in the bank are often powered by seniors favoritism or depends upon their wills and decision. This adds to the negative factors, which denominate the employees thus resulting in affecting their performance negatively. 13LACK OF FINACIAL PRODUCT The bank falls far behind when the innovative and new schemes are considered. It has not been involved in the tug of war between the competitors to the accounts and strengthens the existing customer base. This stands out to be the major incompetence and weakness of the banks. 14INEFFICIENT COUNTER SERVICES IN THE RUSH HOURS During the rush hours, the bank is founded out to be a total flop to handle the mob of people peaking from windows and doors. The bank has deficiency to operate in the stages of rush hours where the people find them services entangled in a situation of nowhere because they are not well served. 15LACK OF COMPUTERIZED NETWORK The bank lack the strength of being powered by the network of computers, which have saved time, energy and would have lessened the mental stress, the employees have currently. This would add to the strength if it were powered by network of computers. 16LACK OF MODERN EQUIPMENT The bank lacks the modern Equipment that is note counting machine computers. Even if there is any equipment they lack to fall in the criteria of being rearmed as update and upgraded 17UNEQUAL WORK DISTIBUTION. The workload in FWBL is not evenly distributed and the workload tends to be more on some employees while others abscond away from their responsibilities, which server as a demodulations factor for employees performing above average work.

OPPORTUNITIES
18ELECTRONIC BANKING The world today has become a global village because of advancement in the technologies, especially in communication sector. More emphasis is now given to avail the modern technologies to better the performances. FWBL can utilize the electronic banking opportunity to ensure on line banking 24 hours a day. This would give a competitive edge over others. 19MICRO FINANCING Because of the need for micro financing in the market, there are lot of opportunities in this regard. Other banks have already initiated, now the time has arrived when the FWBL must realize it and take on step to cater an ongoing demand.

THREATS
20EMERGENCE OF NEW COMPETITORS The bank is facing threats with the emergence of new competitors especially in terms of foreign banks. These foreign banks are equipped with heavy financial power with excellent and innovative ways of promoting and performing their services. The bank has to take initiative in this regard or will find itself far back in competition. 21POLITICAL PRESSURE BY ELECTED GOVERNMENT The ongoing shift in power in political arena in the country effects the performance of the bank has to forward loans to politically powerful persons which create a sense of insecurity and demoralization in the customer as well as employees. 22DOWNSIZING The bank is currently acting upon the policy of downsizing which threaten the environment of the bank Employees feel insecurity in doing their jobs and work, hence affecting the over all performance of employees negatively. 23CUSTOMERS COMPLAINTS There exists no regular and specific system of the removal of customer complaints. Now a day a need for total customer satisfaction is emerging and in their demanding consequences customer's complaints are ignored

16. Recommendations for improvement

GENERAL SUGGETIONS and Conclusions:

FWBL is an effectively operating and profit making organization and carrying out its activities under a specified system of procedure. The main regulatory body is State Bank of Pakistan, which provides policy guidelines and ensures that the money market operates on sound professional basis. While the head office specifies the whole procedure of function and operations. This procedure has been modernized with the passage of time with a view to streamline the approach and underlying procedure for effective overhauling of its own capabilities so as to bring them at par with international practices. Here I am giving some suggestions, which in my view can add some input for efficiency and better performance of FWBL as an organization in genera and City branch in particular. The recommendations are as follows: Professional training FWBL staff lacks professionalism. They lack the necessary training to do the job efficiently and properly. Although staff colleges in all major cities but they are not performing well. For this purpose these staff colleges should be reorganized and their syllabus should be made in such a way to help the employee understand the ever changing global economic scenario. Banking council of Pakistan should also initiate some programs to equip the staff with much needed professional training. Delegation of authority Employees of the bank should be given a task and authority and they should be asked for their responsibility. Performance Appraisal The manager should strictly monitor the performance of every staff member. All of them should be awarded according to their performance and result in the shape of bonuses to motivated and incite them to work more efficiently. To Over Come Problem of Space and Furniture

In the critical analysis this, problem is discussed. To overcome this problem it is Suggested that a special section should be made inside the branch. Which should only handle the treasury function, salaries and pensions of federal personnel or the bank should do these functions in the evening time. Also management should purchase more furniture and arrange them in such a way which provides maximum space and convenient especially in deposit department and there should also be convenient sitting place for customers. Transfer Transfer is not properly carried out. Some of the employees are continually serving at the same post. They are simply rotated at the same branch. Therefore it is recommended that evenly rotation of every employee should take place after every three years in different braches of the bank. Changes in Policies There should not be any abrupt policies change by the upper management, as this practice hurts the customer confidences in the bank. Government should make long-term policies Need of Qualified Staff Required, qualified staff should be provided to branch in order to improve the functioning of the branch. Especially a telephone operator should be appointed. Utility Bill Charges Bank gets Rs. 2 to 3 to processes a utility bill, and it is very tire, tough and hard job despite this working resulting in a loss to then Rs 3 to5 per transaction. These charges should be increased to RS 10 per bill to enable the branch to cover their handling costs and make some profit. Link with the Head Quarter 100 major branches of FWBL should established a direct link with the, head quarter In Karachi, through Internet or Intranet. This will make the functions and decision making of the management easier and convenient. Credit Card FWBL should start its operation in credit card. These cards are very helpful for the ordinary customer in general and the business people in particular. To make it mores secure and to eliminate the misuse of it, the management is required to keep proper security against the card. Installing Validate and ATM Valuator machine is used to count the currency notes and its installation will help to Eliminate to counting errors and will save time. This branch is situated in the City, which is supported to be the hub of business activates. In this area an auto teller machine (ATM) is the need of the hour businessmen can easily check their balance in the bank and also with draw their money conveniently.

Interest on Overdraft: Overdraft is a short-term credit facility provided by the bank to its trustworthy customers free of interest. Only bank commission is charge small amount of mark-up on the overdraft, which will help the bank to improve its revenue position. Clean Loans Clean loan or clean overdraft is the credit facility extended to the customers to the customers without any security. These types of small term loans should not be extended to anybody, because sometime these loans are provided to blue-eyed people of the management and they become a part of bad debts. Cash Financing In this mode of financing the amount of credit not utilized by the borrower is remained tax-free. It is recommended that a small amount of interest should be charge on this amount as well because the bank gas kept-aside the amount for that borrower and can not advance it anywhere. Decreasing Administrative Expenses Bank should their administrative expenses. This was Rs 8 billion in the year 2000. That can be done by lying off the surplus pool of employee with golden handshakes scheme. The branches that are not much used could also be closed. Employee can also be how to control the bank expenses. That will give positive results in the future. Needs to be Flexible in credit Policy As mentioned earlier FWBL is very conservative in advances and loans policy. It reduces the investment opportunities. Also loans should be given to the small businessmen and the agriculture sector at the low markup rate. It should adopt flexible credit policy while giving credit to the agriculture sector. Technological Advancement I would like to suggest that at least all the main branches of FWBL should be fully computerized in order to expedite the dealing process among bankers and their customers. Every department should be provided a computer with adequate training (especially Advances, Deposits and Foreign Exchange departments). Daily records should be entered directly into these computers, (instead entering the overall daily transactions after the banking hours). It will not only reduce transaction time, will increase accuracy but will also be efficient as well. Not only it will be economical but will also reduce the extra burden of work of the bank. It will also help in reducing the use of excessive paper work. Staff Relationship

Good relationship among staff member leads to the peak performances in any organization. I observed that the staff relationship was normal other wise but some time I noticed that there existed a little conformity among the staff members. Another syndrome from which the staff suffered was that all of them considered themselves more important than others. Some of the officers used to say that if I am absent for a day the bank would stop working. So this sort of attitude is not good because it mars bank image and juniors willingness learn and work hard and in the end will hurt the whole team. Improper Distribution of Work Proper distribution work leads to success in every organization. Proper distribution of work prevents the employee from over and under work situation. So for a smooth running of an organization proper distribution of work is the hint to be followed. During my internship I observed that there was no proper distribution of work in the bank. I saw that some of the employee worked like ants other sat idle starting here and there. So this created a lot of over work situation for while relaxation for other. Favoritism and nepotism In the City branch during my internship I saw that when some of the employees are Transfer to other places, due to their relation with influential people and with top Management they can cancel their transfer in few weeks, when they are unsatisfied at that place. So I suggest that in the organization there should be no favoritism, nepotism and politics and their transfer and promotion should be made on merit and according to the rules and regulations of the bank and provided favorable environment to the employee to show their performances. Inter Departmental Transfer I watched during my internship that, there is number of employee who have worked on one seat for many a year. It can have negative effects motivation of employee who is hard working and intelligent. Take the example of advances section. In advance section if the employee is transfer after sixth month or seven month, how can he be able to show his performances and how can he be able to know the bank customer in a short period of time. Foreign currency Account For the internship the place I have selected was City branch, which is my forefather land and I know that from area many people have traveled to other country for different kind of jobs, and I have heard personal complaint about the unavailability of foreign currency account in banks. So I thick it is wonderful opportunity for the bank to open foreign currency account. Marketing Policy The branch should adopt various marketing strategy and promotion strategy to promote the bank and its product. The most important in my opinion is personal marketing; it is the most effective of all when you think in term of branch level. But on the whole organization level, they should arrange the seminar with in the bank and outside the bank. They should introduce various prizing schemes just like Allied

Bank. Karamad Scheme, Bank Al-Falah (monthly income earning scheme) and various others. They should do more advertising through newspaper and media and through channel of personal contacts. Complaints of Customer There should be an information desk to provide the information and to receive the complaints of the customer in the bank. There is no complaint box available in the branch and not any person appointed to hear the complaints. Every person cannot go to the manager for the complaint because most of the people are hesitant. So I suggest management to install a compliant box in the branch, and recruit a special person for that guidance of the customer when they are unable to manage some difficulties in banking matters.

17. Reference & Sources used

The report is based on my two months internship program in First Women Bank Limited. The methodology reported for collection of data is primary as well as secondary data. The biggest source of information is my personal observation while working with staff and having discussion with them. Formally arranged interviews and discussions also helped me in this regards. Primary data: Personal observation Interviews of staff Secondary data: Manuals Journals Magazine Annual reports Internet

References
1. Daft l Richerd Management 4th Edition 2. Kottler Philip Marketing Management Millennium Edition 3. Fred R. David Strategic Management Concepts Cases 7th edition.

18. Annexes

The following scan copies of financial statements are attached which I have used for the preparation of my internship report on FIRST WOMEN BANK LIMITED. 1Balance sheet of 2005,2006,2007 2Profit and loss statement of 2005,2006,2007 3change in equity statement of 2005, 2006, 2007 4Cash flow statement of 2005, 2006, 2007