1

INTERNSHIP REPORT ON

JS BANK LTD
PREPARED BY
HASAN QAMAR
2013-GCUF-15336
BBA (HONS)

REPORT SUBMITTED IN PARTIAL FULFILMENT OF

THE REQUIRMENT FOR THE DEGREE OF
BACHOLUR
IN
BUSINESS ADMINISTRATION

GOVERMNENT COLLEGE UNIVRSITY

FAISALABAD, SUB CAMPUS SAHIWAL

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DEDICATION

I would like to dedicate this accomplishment to my beloved and caring parents and to my teachers
with the support of whom I am standing at this step of my life.

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ACKNOWLEDGEEMENT
In the name of

the beneficent , the merciful

All the acknowledgements are for ALLAH who strengthened and enabled me to accomplish
this task.
No success can be achieved without mercy of ALLAH;
Who always guided me towards my destination, through the pessimistic channels, extracted me
out of the critical junctures, gave me strength to seek knowledge, then to implement with complete
harmony and satisfaction of my heart and filled my soul with the fragrance of knowledge.

&
I also acknowledges with all my soul to those whom I love most,

MY PARENTS
Who helped and encouraged me to achieve my life aims step by step.

&
Would be quite fair to acknowledge the efforts of all my seniors, friends who helped & guided
me in the accomplishment of this humble effort.

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TABLE OF CONTENT

EXECUTIVE SUMMARY…………………………………………………………….5
INTRODUCTION……………………………………………………………………...6
HISTORY OF BANK…………………………………………………………………..7
ABOUT JS BANK………………………………………………………………………8
VISION, MISSION……………………………………………………………………10
VALUES OF JS BANK………………………………………………………………..11
GOALS OF JS BANK…………………………………………………………………12
PRODUCT AND SERVICES…………………………………………………………13
DEPOSIT PRODUCTS………………………………………………………………..14
JS CARD PRODUCT……………………………………………………………….....17
FUNCTION OF JS…………………………………………………………………….17
ORGANIZATION CHART…………………………………………………………...21
MARKETING MIX……………………………………………………………………22
PEST ANALYSIS………………………………………………………………………25
SWOT ANALYSIS……………………………………………………………………..27
LEARNINGS IN MY INTERNSHIP………………………………………………….30
FINANCIAL STATEMENTS ANALYSIS……………………………………………36
RATIO ANALYSIS…………………………………………………………………….41
CONCLUSION…………………………………………………………………………45
SUGGESTIONS………………………………………………………………………...46
REFERENCE…………………………………………………………………………..48
CERTIFICATE………………………………………………………………………..49

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EXECUTIVE SUMMARY

JS Bank Limited is a majority-owned subsidiary of Jahangir Siddiqui & Co. Ltd. and incorporated
in 2007. JS Bank operates in commercial banking sector. The activities of JS Bank are categorized
into five business units. They are Retail Banking, Wealth Management, Corporate Banking,
Investment Banking and Treasury.

Department of Management Sciences demands every student of BBA program to go a procedure

of 4 to 6 weeks internship course and to present the report based on the observations and work
done during the training practice. It is actually the appraisal of any organization currently running
its business, having its competitors. It is also meant for discovering the weaknesses and
shortcomings and then giving the suggestions for perfection.
I have fulfilled my six weeks internship at JS Bank ltd, GCUF SAHIWAL CAMPUS and tried my
level best to achieve something sensibly from this opportunity. In my internship I opened many
accounts of the customers I also did a lot of work on the pension and salary days. As there is a
bunch of crowd on these days so I helped the staff of the bank by filling out the pension forms and
then recording the entries in the register of the Pension Records. In this way we winded up the
work quickly and in less time. This internship report starts from the introduction on word
‘BANKING’ and then history of JS Bank Limited of Pakistan i.e. how it helped the nation and
country in any way. Bank mission and vision statement shows that it focuses on overall
performance of bank and quality of service and products. The main objective of the bank is to
realize the real importance of its customers and is profit-oriented.

A bank performs basic functions that are:

 Accept money as deposit

 Investing deposits to earn profit

 Miscellaneous functions

Each branch of the bank is divided into different sections on the basis of these basic functions.

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Deposit Section opens different accounts of clients and maintains record of money deposits
from the customer and credited it into his account. It also maintains record of payment to the
customer when he presents cheque.

Remittance and Collection Section deals with customers who want to transfer or collect
their money from other city.

Clearance Department deals with the clearance of cheques of other banks and also the
cheques can be cleared at any branch of bank. I have also given the SWOT Analysis of JSBL
which shows that the bank as many Strengths and Weaknesses and also with many Opportunities
there are numerous Threats as well. After this I have suggested and recommended how bank can
improve its working and flourish. I also faced some challenges and problems before, during and
after my internship in the bank which I have added in the reporting the end I have given conclusion
of the entire report

INTRODUCTION

MEANING OF BANK:
The word “bank” has been derived from the French word “banque” or bancus which means bench,
office or institution for the keeping, lending and exchanging of money. Some authorities have the
opinion that “Bank” is derived from the “Germen” word back which to the meaning of “joint stock
fund”. The bank is a financial institution that borrows money from one party and lends to the other
party (Government, individual, business) and the difference between borrowing and lending rate
of profit/Interest for the bank. Bank borrows and lends money on interest basis. Banks are
classified according to their sphere of activity; the main types of banks are as under.

 Commercial bank
 Industrial banks.
 Agricultural banks.
 Saving banks.
 Cooperative banks

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COMMERCIAL BANK:
Commercial is engaged in performing the routine duties of banking business. Such bank collects
the money from the people (as borrowing) and extends the same money as a loan for development
purposes. Commercial bank plays a vital role in the economic development of a country by
performing the variety of function as given below:

1. Accepting of deposits (Current, saving and fixed account).

2. Making loans and advances (overdraft, cash credit, discounting bill).
3. Agency services to customers (Collection of cheques, dividends, electricity, water and gas
bills, and sale of securities, and acts as a trustee.
4. General utility services (Foreign business, Issue traveler cheques, providing trade
information).

HISTORICAL DEVELOPMENT OF BANK:

History of bank is very old; the history of bank is traced to as early as 2000 B.C. The priest in
Greece used to keep money and valuable of the people in temples. Its origin is also traced to early
goldsmiths. They used to keep strong safe, for storing the money and other valuable of the people.
People with surplus money deposited with them. The first stage in the development of banking
was the acceptance of deposits from people. Later on goldsmiths began to issue receipts for the
money deposited with them to settle transactions. These receipts were used in payment of debt and
acceptable to all. This was the second stage towards the development of banking. When goldsmiths
realized that they had surplus money therefore they intended to lend some portion of money to he
nearly traders and merchants who constantly requested for loans This business was quiet profitable
and they instead of charging interest from depositors began to give interest on the money deposited
with them to attract more people this was the third stage towards the development of banking.
They also planned to allow the customers to withdraw in excess of the amount deposited to meet
the customer’s needs. This facility is called overdraft and they used to keep some portion of money
for this purpose. After some time there was then started too much confusion in the banking system
and they were not able to meet the demands of customers. This failure on the part of money lender
to return money caused distress among the people. To overcome this problem people felt that
there must be a bank which control the banking activities of different lending organization. As a

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result of conference held in 1548 at Nuremberg. The decision was taken in favor of establishing a
bank that regulates the banking activities. The first bank was found in Geneva in 1587. Later on
many other banks were established will the same objective. We can conclude that commercial
banking system actually developed in nineteenth century. Now a days the banking activities has
greatly increased commercial banks are now multi serviced organizations and play an important
role in financial markets and in the economic development of the country.

ABOUT JS BANK LIMITED

JS Bank Limited was formed in 2006 by the merger of Jahangir Sidiqqui Investment Bank Ltd.
and the commercial banking operations of American Express Bank (Pakistan) Ltd. JS Bank
Limited also possesses a Primary Dealer License for Government Securities from the State Bank
of Pakistan. JS Bank is one of the fastest growing banks in Pakistan in terms of deposit growth. JS
bank Ltd. key activities can be divided into four business units namely: retail and consumer
banking, treasury, corporate and commercial banking and investment banking. From 150 branches
in 2015, JS Bank has grown rapidly to 238 branches in 122 cities in Pakistan.

JS Bank Limited in four years has more than doubled its top line revenues and bottom line profits.
That is despite the tough economic conditions that prevailed for most of the four year period. The
remarkable profit growth makes it one of the fastest growing commercial banks in the country,
which is a clear achievement. JS Bank has done what the big players have i.e. to cash on
Government securities. The bank's investment to deposit ratio stands at 62% as at September end,
having touched the highest of 73% by March 2014. The ADR has remained in the mid-40s. It
would be unfair to say that all focus has been on Government securities, as the ADR has jumped
from 33% a year ago to a healthy 45% now. But most of the deposit growth has been parked in
Government papers, because that is where the returns have been of late, and risk free one at that.
The focus has been lately on Pakistan Investment Bonds as the returns have skyrocketed. There
has been some signs of JS Bank's openness about private sector lending. Banking sector spreads
have been sluggish for quite some times. The deposit growth has been nothing sort of exemplary,
having crossed Rs. 100 Billion mark recently. JS Bank's Current Account and Saving Account
(CASA) has been hovering at 60% and has decrease of late. Most bigger banks have shifted their
focus towards zero growth in deposits while improving CASA. The cost to income ratio could

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still be improved , but one has to bear in mind that JS Bank is growing its network, which can
result in comparatively higher cost to income ratio, than more settled banks. JS Bank has the honor
of being the first bank in Pakistan to implement one of the most sophisticated and advanced core
banking systems Temenos T24. This is a shift from the previous SBS system and it will allow the
bank to launch new products and provide improved services to its customers.

JS Bank has earned 9 month profit before tax of Rs. 610.55 million till September 30th, 2014. The
bank is positioned as a robust mid-sized bank with strong liquidity and sound capital base of Rs.
10.92 billion. During past nine months JS Bank deposits have increased by 26%, with almost Rs.
21 billion in growth since December 2013. This is a direct result of customer's trust and confidence
also strength of relationship between the Bank and its customers. Some of the key numbers are
presented below:

JS BANK LIMITED
(ALL AMOUNTS IN SEP 2015 DEC 2013 DEC 2011
RS MILLION)

DEPOSITS 101,936 80,916 7,198

ADVANCES 45,637 33,763 1,693

EQUITY 11,050 9,139 3,004

TOTAL ASSETS 130,264 112,770 12,545

PROFIT BEFORE
611 501 0.406
TAX

ADR 45% 42% 24%

NO. OF BRANCHES 212 211 4

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VISION STATEMENT:

To provide quality and innovative range of banking services and products to our customers through
a highly motivated team of professionals, while maintaining high ethical and regulatory standards,
thereby generating sustainable returns to our shareholders.

MISSION STATEMENT:

To be a preferred partner of our customers by providing complete financial solutions exceeding

service expectations, and to do so through a single relationship via convenient distribution
channels, both conventional and non-conventional.

We help you “Our Customer” not as a buying agent but as a partner of choice by Brands, trades,
people and developers. JS Sourcing is an organization constantly learning to improve its
services, testing compliances, audit capacities and customer service through research,
professional development and technological innovation. It is a company consistently pushing the
envelope of accepted CSR (Corporate Social responsibility) to create better value for customers.

We attain customer satisfaction and environmental requirements by continuously improving our

products and technologies. To acknowledge and uphold our corporate social responsibility, as
expressed in our commitment and achievement of its goals in compliance with all legal
requirements and to uphold and where applicable to continuously improve, we ensure:

 Quality products and processes

 Safe and healthy workplaces
 Safe machinery and thus the safety of third parties, and
 An intact environment

We meet our mission by:

 Recognizing and fulfilling customer and end user needs
 Ensuring that our employees are experienced, conscientious and kept well-informed
 A certified management system
 Documented process control and fault detection and avoidance

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 On-going fostering of in-house quality consciousness and environmental and safety

awareness
 Fostering preventative approaches and active staff involvement in the fields of
occupational safety and plant safety
 Intensive collaboration with suppliers, business partners and regulatory authorities
 Environmentally-compatible improvements to our production processes
 Regular review of our vision and mission

VALUES OF JSBL:

 Integrity:
For us, integrity means a synergic approach towards abiding our core values. United with
the force of shared values and integrity, we form a network of a well-integrated team.

 Meritocracy:
At every level, from selection to advancement, we have designed a consistent system of
human resource practices, based on objective criteria throughout all the layers of the
organization. We are, therefore, able to achieve a specific level of performance at every
layer of the organization.

 Team Work:
Our team strives to become a cohesive and unified force, to offer you, the customer, a
level of service beyond your expectations. This force is derived from participative and
collective endeavors, a common set of goals and a spirit to share the glory and the
strength to face failures together.

 Culture of Innovation:
we aim to be proactively responsive to new ideas, and to respect and reward the agents,
leaders and creators of change.

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GOALS OF JSBL:

1. To mobilize private savings and public funds for diverting the same into productive
channels and ensure their availability. To promote industrial agriculture and
socioeconomic process through the active participation of private and public sector in the
province.
2. Help under developed areas and create employment opportunities, especially in the rural
areas of the province. Further, to guide and assist the people of Pakistan serving overseas
to effectively and profitably invest their foreign savings in the province as well as in other
parts of Pakistan.
3. Create a diversified and sound portfolio for utilization of idle funds and their investment
in the existing and new ventures especially in the pioneering of high-techs agro-based
export oriented and engineering project to ensure maximum returns.
4. Participative and seek the share of the country in the capital market of Pakistan by way of
subscription through locally peopled resources in the leading stock exchange of the country
and eventually paving the way for establishing a stock market in the province.

WHEN JSBL PREEDY GATE IS ESTABLISHED:

This Branch was established on May 10, 2009 to facilitate two giant Business community and
inhabitant of JSBL Sahiwal Branch, besides providing series of general banking to the citizens and
nearby areas. Currently it an on-line bank.

BASIC FUNCTIONS:

Accepting of deposits:

a. Current account b. Saving account c. Fixed deposit account

Advancing of loans:

a. Loans and advances b. Cash credits

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Agency functions:

Collection of cheques
 Transfer of funds from one place to another.
 Handling of Salaries and Pensions of federal/provincial employees and defense
personnel.
 Assisting to Agriculture
 Act as an agent or representative of his customers
 Collection of Negotiable Instruments
 Issuing Guarantees and Indemnities
 Granting of letter of credit

General utility services:

 Utility Bills collection

 Sale and encashment of Prize Bonds
 Issue of Travelers Cheques
 Supplying of Trade information
 Act as a referee
 Financing of Foreign Exchange
 Preparation of feasibility reports for small industrial units
 Collection of fees and money for people proceeding on “Hajj” providing pilgrimage
services

PRODUCTS AND SERVICES:

JS Bank offers a variety of products and services for both depositors and borrowers at competitive
rates. Please note that Zakat, Withholding tax, or any other tax/ conditions are applicable as per
SBP Regulations. To get further details, please click on to the specific Product or Service in the
drop down menu.

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DEPOSIT PRODUCTS:

Deposit Products

JS Premium Current Account

JS Premium Current Account provides unmatched convenience, protection and privilege,

designed around your banking and lifestyle needs. To make your life feel easy.

Asaan Current Account:

JS Asaan Current Account offers simplest banking to all Pakistanis. With our simplified account
opening process and documentation,we ensure banking is convenient and quick for every
individual. JS Asaan Current Account offers the following facilities:

 No Minimum Balance Requirement

 No Account Maintenance Charges
 Total of Rs. 500,000 transaction limit of Debit & Credit per month
 Option to avail all Alternate Delivery Channels services
 Country wide banking facility
For additional features of Asaan Current Account.

Platinum Business Account

JS Platinum Business Account offers a host of benefits, for the ultimate banking experience that
you deserve! By maintaining an average balance of Rs.150,000 you can avail the best of our
services designed around your business banking needs, absolutely free! For complete feature list
of JS Platinum Business.

Kamiyab Business Account

The Kamiyab Business Account offers great value for businessmen, to make business transactions
smoother and faster. The following services are offered absolutely free of charge:

 Online Inter-city Funds Transfer

 Return Cheque (outward)

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 Demand Draft and Pay Order Issuance

For additional features of Kamiyab Business Account,

Rupee Plus Account

JS Bank’s Rupee-Plus savings account is a high performing product, calculates profits on a daily
basis, giving maximum returns with the greatest flexibility. By opening a Rupee plus Account with
JS Bank, the following services can be availed absolutely free of charge: Online Inter-city Funds
Transfer. Return Cheque (outward). Demand Draft and Pay Order Issuance. For additional features
of Rupee plus Account,

Rupee Current Account

The Rupee Current Account primarily targets individuals and companies that have a high turnover
of cheques. Ideal for volume based businesses; Rupee Current Account has no initial balance
requirement. In addition, if an average monthly balance of PKR 100,000 is maintained in the Rupee
Current Account.

PLS Rupee Saving Account

The JS Bank PLS Saving Account is a Profit and Loss sharing account that offers competitive
returns on your savings with security and convenience. A PLS Rupee Saving Account holder gets
the following services absolutely free of charge:

 Online Inter-city Funds Transfer

 Return Cheque (outward)
 Demand Draft and Pay Order Issuance
For additional features of PLS Rupee Saving Account.

Rupee Basic Banking Account

This is a Rupee account that can be operated keeping a balance as low as Rs. 1,000/-. Ideal for
salaried individuals and persons with low transaction turnover, Rupee Basic Banking Account
has the following salient features:

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 No transactional charges up to 2 deposit transactions and 2 checking withdrawals per month.

 No minimum balance requirements.
 No charges to maintain the account.
 Country wide banking facility
 Foreign Currency Account
 Current and Savings accounts in US$, Pound Sterling and Euros.
For additional information about Rupee Basic Banking Account.

Muhib-e-Watan Account
It’s never easy when loved ones are living abroad. Now with the JS Bank Muhib-e-Watan Account,
you have peace of mind in knowing that you can get the best return on your funds even when your
loved ones are miles away. Designed specifically for the needs of foreign remittance beneficiaries,
the JS Bank Muhib-e-Watan Account gives you great benefits and a high rate of return so that you
can enjoy the very best of life.

Rupee Fixed Deposits

JS Banks offers account holders fixed deposit products with different tenures and competitive
rates. You can transfer your idle funds available in Current, Savings, Kamiyab Business or Rupee
Plus account(s) and reap benefits in the shape of optimum returns.

JS Rupee Travelers Cheque

JS Rupee Travelers Cheque is an easy-to-use Cheque instrument designed to facilitate transactions
in a secure and smart way, allowing customers great flexibility in conducting transactions on the
move. JS Rupee Travelers Cheque is very useful for individuals, particularly for customers who
need cash while travelling within Pakistan to conduct transactions, make payments and keep their
cash safe with them, with a secure and recognized tool that is as good as carrying cash.

Special Convertible Rupee Account

In light of State Bank of Pakistan (SBP) guidelines, Non-residents are allowed to trade freely in
the shares quoted on the Stock Exchange of Pakistan (Secondary Market). However, for this

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purpose non-residents are required to open Special Convertible Rupee Account (SCRA) with
Banks and CDC sub-accounts with participants of Central Depository Company in Pakistan.The
Operation of SCRA accounts is up to an extent of remittances received from abroad or by transfer
from a Foreign Currency Account maintained by non-resident investors in Pakistan. The balance
available therein can be used for purchase of any shares quoted on the Stock Exchange of Pakistan
(Secondary Market). The disinvestment proceeds against sale of previously purchased shares
through SCRA can be credited in this account. The SCRA accounts can also be credited with
dividend income against the shares held by non-resident investors

JS Card Products
JS Visa Debit Card
JS Bank Visa Debit Card gives you the convenience and freedom of using your card for shopping
directly wherever you see Visa sign in addition to cash withdrawal facility from ATM at any time.
No more worrying about carrying excess cash, your money is safe and always reachable.

JS Credit Card
Welcome to a World of Privileges, with JS Bank VISA Credit Cards. JS Bank offers you a Credit
Card which empowers you to shop at millions of locations worldwide facilitated with amazing
discounts offered globally at different outlets.JS Bank VISA Credit Card offers all services and
many more advantages which would fulfill your credit, spending and lifestyle needs. Your card is
accepted at any VISA-accepting outlets in Pakistan and throughout the world. To apply or for more
information.

FUNCTIONS OF JS BANK LIMITED

To fulfill the basic objective that is of socio-economic nature JSBL perform following important
functions.

 Commercial Banking
 Corporate Banking
 Investment Banking
 Retail Banking

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COMMERCIAL BANKING:

Enterprises operating in the middle market contribute significantly to the economy of a country.
Traditionally, this sector was the stronghold of JSBL’s business. During the early 90s, with the
liberalization of the financial sector in Pakistan, competition in the industry stiffened due to the
emergence of new banks in the private sector. The senior management at most of these banks
comprised personnel from JSBL. They not only knew the market but were also familiar with the
shortcomings of JSBL. Under the new set-up, they were able to address these shortcomings and
began to target JSBL’s customer base. With the inception of an alternative, JSBL customers started
migrating to the newly established banks this causing the erosion of JSBL’s market share. During
FY-2000 JSBL’s management decided to address this issue. Hence forth, Commercial Banking
was created to focus on the business needs of the middle market customers. On November 1, 2000
Commercial Banking came into being. At present, 18 Commercial Centers and Sub-Centers
functioning, located at Karachi, Lahore, Faisalabad, Sialkot and Gujranwala.

Goals:

The Goals of setting-up Commercial Banking was two-fold:

 First to stop the erosion of market share in the middle market;

 Second, to regain the lost market share
The strategy adopted to achieve the above objective was to position Commercial Banking segment
as the “Trade Finance Bank” for its customers. The rationale behind this strategic decision was to
capitalize on the existing marketing knowledge & strong contacts with the middle market
customers, who were loyal to the JSBL brand.

CORPORATE BANKING:

Corporate Banking Group serves large institutional and corporate customers in Pakistan through
10 dedicated corporate banking centers in all major cities. The CIBG portfolio consists of most of
the largest names in the market and represents all major industry groups, including textiles, large
scale manufacturing, telecommunications, petrochemicals, fertilizer, airlines, transportation and
services. It offers its clients a comprehensive range of banking services via a one-window interface
through designated relationship manager. Corporate Banking is recognized as a market leader due

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to its unique ability to meet the entire spectrum of a customer’s banking requirements. JSBL’s
large equity base allows to meet the financing needs of the largest corporate and it’s large network
and specialized teams are able to deliver and provide customized solutions. The Group has
increasingly focused on providing value addition services to the customers, e.g. payroll and cash
management services. The Bank has become a leader in cash management services by leveraging
its large domestic branch network and now provides such services to a range of large and medium
sized corporations, including the Pakistani units of some Fortune 500.companies.

INVESTMENT BANKING:
An Investment Banking Unit has been established which focuses on loan syndications,
development of local currency corporate bonds (TFCs) and advisory services.

RETAIL BANKING:
The Retail Banking network, with 175 branches, is the core strength of JS Bank. Its extensive
reach in all geographic locations – urban and rural – throughout the country provides access to
over 5 Million customers across all sectors of the economy. The network provides JSBL with the
largest diversified low cost deposit base of any bank in Pakistan, and forms the basis for many of
its other business lines: corporate and investment banking and treasury activities.

Retail Banking Group (RBG) has two principal areas of activity;

 The retail network for deposit mobilization

 The consumer-banking group.
JSBL is the only major bank to have a very dedicated group to serve the Small & Medium
Enterprises (SME) sector. JSBL believes that the SME sector can be an engine of growth for the
economy and represents an area of opportunity for the Bank. RBG was therefore established in
late 2000 to provide banking services and credit on a structured and systemized basis. It now covers
25 branches in the six major industrial cities of Pakistan. The Group now works closely with its
customers, which cover all segments of the economy including the textile sector, vendors and
suppliers to structure the finances and improve their capabilities. We have been very encouraged
by the outcome that reaffirms its belief in the potential of this sector.

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There is a growing propensity for consumer spending to uplift living standards.

Recognizing that consumer demand can be a major driver of investment and
economic growth, the Government has also moved towards an enabling regulatory framework and
has also taken initiatives to create an appropriate legal regulatory framework to enable the
development of a housing finance market. With its extensive branch network and large customer
base, JSBL has an important role to play in the development of this sector of the economy in which
it expects substantial growth in the next five years.

JSBL has moved aggressively and has already introduced three major products;

 Personal Loans,
 Car Financing
 Consumer Durable Financing
In association with major suppliers of consumer products. These have been well received and
volumes have been building up steadily. It is the intention of JSBL to be a leader in consumer
financing. Plans are also underway to develop mortgage financing for the housing sector.
Agriculture is the most important contributor to Pakistan’s economy. JSBL, which has been a
leader in agriculture financing, plans to increase further its credit to this sector with a particular
focus on providing a wider range of products to small and medium size farmers.

In our Retail network, we have an unmatched distribution network, which provides us many
opportunities for growth, and we plan to use this to soon provide additional services, including
wealth management services.

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ORGANIZATION CHART:

HEAD BRANCH Next Higher Superior's position

BANKING

REGIONAL
OPERATIONAL
HEAD

BRANCH
MANAGER

BRANCH OPERATIONS
MANAGER

CASHIER / OPERATIONS
TELLER STAFF

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Marketing Mix

Marketing mix:
Marketing mix is the heart of the marketing. Marketers make marketing mix decision
for influencing their trade channel as well as their customers. Once they understand these groups,
marketer makes or customize an offering or solution, inform customers recognizing that may
other sources of information also exist set price that offer real value, and choose place where the
offering will be accessible.

Product;
“Product” refers to goods and services you offer to your customers. Apart from the
physical product itself, there are elements associated with your product that customers may be
attracted to JS Bank have the various products which are given below in detail.
Asaan Current Account:

JS Asaan Current Account offers simplest banking to all Pakistanis. With our simplified account
opening process and documentation,we ensure banking is convenient and quick for every
individual. JS Asaan Current Account offers the following facilities:

 No Minimum Balance Requirement

 No Account Maintenance Charges
 Total of Rs. 500,000 transaction limit of Debit & Credit per month
 Option to avail all Alternate Delivery Channels services
 Country wide banking facility
For additional features of Asaan Current Account.

Platinum Business Account

JS Platinum Business Account offers a host of benefits, for the ultimate banking experience that
you deserve! By maintaining an average balance of Rs.150,000 you can avail the best of our
services designed around your business banking needs, absolutely free! For complete feature list
of JS Platinum Business.

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Kamiyab Business Account

The Kamiyab Business Account offers great value for businessmen, to make business transactions
smoother and faster. The following services are offered absolutely free of charge:

 Online Inter-city Funds Transfer

 Return Cheque (outward)
 Demand Draft and Pay Order Issuance
For additional features of Kamiyab Business Account,

Rupee Plus Account

JS Bank’s Rupee-Plus savings account is a high performing product, calculates profits on a daily
basis, giving maximum returns with the greatest flexibility. By opening a Rupee Plus Account
with JS Bank.

Rupee Current Account

The Rupee Current Account primarily targets individuals and companies that have a high
turnover of cheques. Ideal for volume based businesses; Rupee Current Account has no initial
balance requirement. In addition, if an average monthly balance of PKR 100,000 is maintained in
the Rupee Current Account, the following services would be absolutely free of charge:

 Chequebook Issuance (25 leaves)

 Small Locker*
 ATM Card Issuance**
For additional features of Rupee Current Account.
PLS Rupee Saving Account
The JS Bank PLS Saving Account is a Profit and Loss sharing account that offers competitive
returns on your savings with security and convenience. A PLS Rupee Saving Account holder gets
the following services absolutely free of charge:

 Online Inter-city Funds Transfer

 Return Cheque (outward)

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 Demand Draft and Pay Order Issuance

For additional features of PLS Rupee Saving Account.

Price:

There are different prices of the products that JS Bank providing like they open the current
account then open from 1000 as always. They set the price according to the products then set like
they open the current account and saving account as like always others banks.

Placement:

The placement strategies of the JS Bank are very effective and strong. They have over 230
branches in the major cities of the Pakistan. The products and services are provided to the
consumers at the branches. They set place according to the market JS Bank set this according to
the market because this branch is in middle of the Sahiwal city where they open the branch most
of the customer attract form it. Another things is that it logo is very attractive most of the people
attract from this logo and open the account in this branch and in Sahiwal there is two branch and
there position is good in Sahiwal.

 Check Market Standard

 Check Professionalism
 Check Environment

Promotion:

Promotion is the last p of the marketing mix. And the some marketers say that the most
important part of the marketing mixis promotion. Organizations are very.care full about the prom
otion of their products in the market; adopt the promotional strategies for the effective promotion
of their products.JS Bank uses the different strategies for the promotion of their products according
to the environment of the market for capturing the most of the customers in the
market. Thety used strategies such as

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 Sale Promotion
 Introducing new products
 Direct Marketing through BDO
 Advertisement
 Internet Media Use
 Television

PEST ANALYSIS

Political factors:
The events in the last couple of years; the bomb blast of May 28th 1998 and the subsequent freezing
of the FCA’s, the declaration that Riba is Un-Islamic, and a volatile political scenario that saw the
overthrow of the Nawaz Sharif regime, all contributed in highlighting the important role
of government in the local economy. The freezing of the FCA’s destroyed the confidence
of foreign depositors. Also, the declaration that Riba is against the Sharia ,is likely to cause
tremendous uncertainty in the banking sector. After this Pakistan’s army totally holds on the
government and push back the economy. Stability under the new regime is also very important for
the economy as a whole. Continuous political changes have disrupted the policies and objectives
as each regime brings with it its own agenda. Organizations need time to adjust to one regime and
then work with it towards economic enhancement. Due the wrong policies of the government the
talibanization also develop in Pakistan and become the international issue in Pakistan and badly
affected the Pakistan repute in the world and promote the uncertain conditions for the business in
the Pakistan. Due to this the investors are not interested in the Pakistan.

Economic factors:
The Pakistan economy is more controlled economy, then one where market forces reignsupreme.
Several key institutions are stated owned. Thus a discussion of the economic forces that influence
the private organization such as bank Al Habib cannot ignore the substantial role played by the
government in determining the state of the economy. The biggest indicator of the heavy role
enjoyed by the government was evidence when foreign currency accounts (FCA’s) were frozen on
the orders of the ministry of finance in the wake of explosion tests on may 31st 1998.This and the
recent efforts by the state bank to artificially lower the interest rates by revising the reports

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downwards and encouraging lower bids for T-Bill, highlights the overwhelming role of the
government in the economy. Badla rates are a true indication of market rates at which financial
intuitions are willing to lend but the government, under the dictates of the IMF wants to artificially
lower the interest rates so as to provide investment liquidity within the economy. General
Musharaf period of government putt back the economy of the Pakistan due to the wrong policies
of the government for the economic growth in the Pakistan. Pakistan economy destroyed badly in
that 10 to 11 years of the government, and investors hesitated to invest in the Pakistan, and also
the load shading is another factor that effect the Pakistan economy badly. This not the end of the
story after this Pakistan’ economy face lot of problems like bomb attacks in Pakistan no electricity
and the unstable government, due to this the investor are not invest in the Pakistan and the existing
business men finish their business unit due to the loss.

Social factor:
A low saving culture has offset the huge population advantage this is enjoyed by Pakistan. Also
culture is dedicated by the religion, and in Pakistan a significant segment of the population is loath
to accept interest for their deposits due to the negative religious implications of such an act. About
70% of Pakistan’s population is based on rural areas, thus making it harder for banks to mobilize
their deposits within these regions.

Technological factor:
Banks in the developed world have been turning to heavy IT investments, which differentiate their
products, provide response times, enhance accessibility and improve customer satisfaction.
Though investing in state-of-the-art host banking solution (Fiserv, Kapiti, etc) , ATM and POS (
pointof sale) networks, visa, MasterCard, and Amex switches, smart cards, telebanking and
now internet banking are common IT investment in the developed world, it is now that these
products and services are gaining faster acceptance in Pakistan. JS Bank change their technology
in IT sector due to the requirements of the current time, before this they have the poor technology
of the IT and un less skilled person in that field but at this time they replace it with the heavy
installation of the IT instruments. They hired new skill employed and trained them for the efficient
and effective work.

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SWOT ANALYSIS

STRENGTH:

 Well behaved staff.

 Friendly staff due to which more and more customers attract to this branch.
 People have developed trust in this bank in a short time.
 Majority of people have opened accounts in this bank as compared to their competitors.
 This bank has become popular in a short time.
 Employees are willing to share some of the burden of other employees.
 Employees support each other emotionally which is important.
 Bank has a family-like environment.
 Employees greet their customers cheerfully and always ready for help also make customers
feel important which builds strong relationships with customers which in turn is beneficial
for the bank.
 Employee salaries are good as compared to competitors.
 Female protective culture prevails in JS Bank. Females are not held in office during hours
of darkness. If someone harasses females then females can complain to Head office and
punishments are given to the guilty person.
 Responsibility of Western Union payments is given to the Customer Service Officer who
is female because majority clients for this service are female and so that they are more
comfortable with female officer. Also in case of recognition of face females observing
purdah can easily show their face to a female officer.
 JS Bank is one of the pioneers in converting its bank branches to solar, including in various
philanthropic activities through its charitable arm.
 JS Bank has been nominated by Ministry of Religious Affairs, Government of Pakistan to
accept Hajj Pilgrimage for the year. This is due to service excellence and fast-track growth.
 Extended timings for Home Remittance Transactions. JS Branches remained opened from
8:30 am to 5:00 pm (Monday 13 August 2012 to Saturday 18 August 2012).

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WEAKNESSES:
 It's competitors have first mover advantage. Competitors have been in the industry way too
long.
 No name plates are displayed at any table of any officer or employee at JS bank branch.
 Employees should pay attention to clean desk policy.
 Absenteeism of employees.
 The branch size is small so during rush hours the branch looks over crowded.
 ATM service is sometimes down.
 The Branch has no locker facility available.
 JS Bank has small branch network in the country.
 Advertisement about JS bank is less as compared to its competitors.
 ATM card charges are high for JS Bank as compared to competitors like MCB etc.
 Majority of people are not well aware of the products of JS Bank. Therefore it should
advertise extensively.
 Mismanagement of time is another weakness, the official closing time is 5:30 pm but due
to mismanagement of time and work the staff are usually on their seats till 7 or 8pm.
 There is no overseas branch network of JS Bank. On the other hand its competitors like
MCB has 8 overseas branches while HBL has 20 and NBP has 15 overseas branches.
 There is no Human Resource person at Regional level so all the duties of Human Resource
like selection of candidates for jobs, Interviewing the candidates and giving jobs to
candidates is done by Branch Manager alone. This can cause biasness. There may occur
many errors in selection.

OPPORTUNITIES:
 JS Branch should increase branch size so that more employees should be hired.
 By increasing branch size gives the capacity to have more customers at any time and avoid
being over crowded.
 Hire more employees and more departments should be added so that more products and
services should be provided.
 JS Bank should increase its branch network in all across Pakistan.

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 No other bank branches are located at the far ends of the city so JS Bank should open
branches at the brink of the city so that customers should be at ease and more people will
definitely avail services of the bank that is in closest reach to them.
 Add more services like Money gram.
 Increase advertisement about JS bank so that more people should know about this bank.

THREATS:
 There are many competitors of JS Bank. The competition has become severe by the entry
of so many banks, so to exist one will have to prove itself in its services through excellent
management and will have to satisfy its shareholders. Otherwise that bank will be out of
the market.
 All the competitors are at the same place.
 Inconsistency in Government policies.
 Image of other banks in customer's mind is strong because other Banks are in the banking
industry for far too long.
 Government policies regarding tax change all the time and Government charge more tax
every time.
 Current economic conditions of the country.
 The decrease purchasing power of consumer in the current economic situation of the
country is affecting the speed of business activity and the result is low investment from
investors in new projects can cause problem for bank because it is working a lot in trade.
 Entrance of international banks in Pakistan.
 There is a risk of a terrorist opening an account with bank. So Bank has to be extra careful
in dealing with customers and do not open such accounts if there is even a hint that such
person is or might be involved in terrorist activities even if that person has high deposit.

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Learning of My Internship Duration

I worked as an internee in JS Bank for Six weeks as per required by the University. During my
internship there was tremendous and friendly atmosphere in JS Bank. I learned so many things
from their management like how to work in a standard place.

At my first day in JS Bank, the branch manager and Area Manager Mr. Sardar Mumtaz Dogar
introduced me to all the employees in the bank that was orientation. After that I was handed-off to
Mr. Tahir Aziz, he is the operations manager, he was responsible for my learning in the bank.
I worked under him for two weeks. I learned many things specially how to work as a professional
and learned about his duties and job description in the bank at that post. After that I moved besides
Customer Service Officer Ms. Shaista Hanif. She was very helpful and extremely friendly. She
provided me with all the information that I asked for and co-operated with me very much. She
provided me with notes in the bank's archive and brochures that were necessary for me to gain
much knowledge about bank. Her way of teaching and dealing with me was very good. Bank
Manager was very supportive and much helpful. He also shared his professional knowledge about
products and services. I learned a great deal from him also.
The most important benefit of internship is that I got practical exposure of the workplace. I got
practical experience of working practices related with my field.
I learned process of account opening of individuals, checked vouchers, issued cheque books and
recorded them, issued ATM cards and kept record of them, learned about different types of ATM
cards, filled online and deposit slips, filled issuance of Visa Debit Card form, filled cheques of
customers who did not knew how to fill a cheque. I filled the "Funds Transfer Application Form"
it is for Pay Order, Demand Draft, Account to Account Transfer. It contains Transaction Details
like Amount in figures and in words, Purpose of sending money, Currency, Mode of payment like
Cash or Debit Account or through cheque. After that there is Beneficiary's detail like Name of
beneficiary (The person or organization to whom the money is sent) and at the end there is
Applicant's detail Name, Address, CNIC number, Contact number and relationship between
beneficiary and applicant e.g. student, if a person wants to send IELTS fees. I also learned about
Authorized signatures. I also learned how to do marketing of a product in 1 minute. I learned how
to use photo state machine and scanner.
I got to learn about "Account Services Form". This form is for multiple purposes.

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1. If customer wants to know about his account details then there is portion for this, Account
title, Account number, Telephone number, Cell number, and CNIC number is required.
2. In case the account of a customer is dormant account. Account becomes dormant if the
account holder has not used his account for one year or if the bank's management cannot
get in touch with the customer or if the account statement sent to the customer that has
been dispatched by the bank returns from the address to where it was sent. So in this case
Account Re-activation portion is filled where customer has to be present himself in the
bank and request this along with Deposit slip as certain sum of money is required and copy
of his CNIC.
3. If customer wants any kind of Bank certificate then "Bank Certificate" portion is to be
filled. These certificates include Withholding Tax certificate, Zakat Certificate, Balance
Certificate, A/c maintenance certificate. In this portion address of customer is written and
the duration or dates of the period that certificate is required.
4. Account statement portion is next in this Account number is written and dates.
5. If customer has changed contact details then "Contact Detail" portion is filled. Old address
and new address is written. In case of change of phone number then old and new one is
written.
6. This form also has portion about counter cheque and stop payment. Counter cheque is
Bank's book on which no account number is mentioned. When customer needs urgent cash
and he has neither his cheque book not ATM card with him then he requests Bank to issue
him a counter cheque so that customer can withdraw money from his account. One counter
cheque costs Rs. 100. On this cheque customer's name, account number and amount is
written. And stop payment is for stopping any payment again any cheque or Demand Draft
or Pay Order. This is for safety if the customer looses cheque then he requests bank to stop
that payment so in case the lost cheque got into the wrong hands. Charges are Rs. 300 per
cheque and Rs. 500 per series of cheques.
7. In case the customer wants to close his/her account then "Account Closure" portion is
filled. For this purpose reason for account closure is mentioned. Cheque book has to be
submitted to the bank or cheques that are not used are to be handed to the bank so that
bank can destroy them or in case the cheques are not provided then customer has to assure

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the bank that the unused cheques are destroyed by the customer. Also mention all the
services that are to be closed like Internet Banking, SMS Alert, Mobile Banking.
I learned about the "E BANKING SERVICES APPLICATION FORM". This form is for obtaining
VISA DEBIT CARD or for SMS Alerts service or E-STATEMENT or for using Internet banking
service for account. For obtaining any of the above mentioned service first of all personal
information of account holder is needed like Title of account, Mailing address, Account number,
Account type (joint or individual), CNIC number, Mother's maiden name, Mobile number, E-mail
Address.
During my internship, I dealt with many customers and that was a great experience to learn:
 How to deal with customers.
 How to work under pressure i.e. in rush hours.
 How to manage an office.
 My communication skills were improved.
 My confidence level boosted up.
On my first day at JS Bank I was given the orientation. Branch Manager introduced me to the
staff and told me that if the Branch Manager is not present in the branch then Branch Operations
Manager is incharge and in case he too is absent then Customer Service Manager is incharge. The
employees at JS Bank Sahiwal Branch are as follows:

Branch Manger

Sardar Mumtaz Dogar

BOM (Branch Operations Manger)

Tahir Aziz

CSM (Customer Service Manger)

Shaista Hanif

RM (Relations Mangers)

CH Adeel

CRO (Customer Relation Officer)

Sh Ahsan

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Branch Manager + Relations Manager + Customer Relation Officer are called CRBG (Corporate
and Retail Banking Group).Operations include Operations Manager +Customer Service Manager
+ Universal Tellers. I read the forms that were sent by Head Office for internee. I read the
Internship Learning Contract and also Internee responsibilities.

Responsibilities of Intern are as follows:

1. Adhere to JS Bank policies, procedures, and rules governing professional staff behavior.
2. Adhere to JS Bank policies governing observation of confidentiality and the handling of
confidential information.
3. Assume personal and professional responsibilities for his/her actions and activities.
4. Maintain professional relationship with the JS Bank employees, customers and so forth.
5. Utilize a courteous, enthusiastic, open-minded, critical approach to policies and procedures
within the profession.
6. Relate and apply knowledge acquired in the academic setting to the JS Bank setting.
7. Develop self-awareness in regard to attitudes, values, behavior patterns, and so forth that
influence work.
8. Prepare for and utilize interactions, meetings and other opportunities of learning afforded
in the JS Bank.
9. Be consistent and punctual in the submission of all work assignments to the supervisor.

Management Information System

JS Bank uses its MIS to generate large volume of reports and data on daily basis. It utilizes the
total branch computerization software packages to carry its transactions. These softwares don’t
accept any data packets from outside the network of JS Bank. All the transfers of data packets
takes place with in the bank JS network even the e-mail system is such that it works only on the
domain of JS Bank, no bank employee can send an email to any other domain neither he can
receive any message from another domain. Thus it is a very safe system. Every branch has its own
IT department which provides technical support to the branch computer network. With the help of
this system all the data is updated on daily basis and is sent to the area head quarters. This MIS
contains all the necessary functions which are required for modern day banking business. User
friendly interface makes it easy for bank employees to use it in the most efficient way.

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Employees Integrity
If the employees in the bank are not working according to the code of conduct specified by the
management then the organization will fail to achieve its goals. The management of JS Bank
understands this important concept. The competition and the competitors are tough so it is
extremely important that the bank employees adhere to good moral and ethical principles and
perform their roles with honesty. JS Bank promotes and practices transparent and honest work
behaviour for all its employees. The sense of responsibility inculcated in every member of the
organization demands impeccable and intact work ethic system.

Systematic Risk
As stated earlier that management of JS Bank has made its risk control framework even stronger
because of the financial conditions in Pakistan during the year 2011. It is true that the systematic
risk is often beyond the control due to the macroeconomic factors such as inflation, interest rates,
tax changes etc which change for the entire market. However at JS Bank now there is a Risk
Management Division (RMD) in place with the General Manager of RMD department reporting
directly to the CEO. Additionally the Board of Directors through its sub-committee called "Board
Risk Management Committee (BRMC)" oversees the overall risks faced by the bank. As this risk
is largely beyond control so the management has to adopt the reactive approach in order to deal
with the situation when the changes will occur. The conditions will change for everyone in the
banking business so the appropriate department after analyzing the situation will make necessary
changes in the bank policies and practices.

Un-systematic Risk
During my internship program and my experience of talking to the employees I was not able to
spot any risks that were unique to that particular branch of the bank or to the whole organization.
The employees looked satisfied and happy with the working environment and all the facilities
which the bank had provided them. So there is no such risk of a strike or anything similar. The
bank's management makes rules that suit their employees. Keeping them happy is one way of
boosting their productivity and thus the organization as a whole will prosper.

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Future Prospects of the Organization

The Management of JS Bank intends to widen its network of branches with in Pakistan in the
future. This intent has been shown by the senior management and the stress is on maintaining its
quality of service and its standards for its customers. The senior management has made a clear
statement that they will go aggressively in the fields of microfinance and SME lending. JS intends
to offer more innovative products in the department of SME. In addition to that the bank's
management has realized the potential of Islamic banking in Pakistan. A lot of people are taking
interests in the products currently offered by the Islamic banking system of JS Bank. Thus we
would see more Islamic Branches of JS Bank being established inside Pakistan. Their strategy
looks to be aggressive here too as the intent is to grab most of the market share by offering new
products to its customer and take an early lead in the competition

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Income Statement Horizontal Analysis
For the Year ended June 30, 2015
Base Current
Year Year Horizontal
Items 2015 2014 (2014) (2015) Analysis
Rupees in Millions Figures in %
Sales 123,404,537 122,091,652 100 101.08 1.08
Add / (Less):
Differential margin
/ (development
surcharge) 750,496 (9,514,600)
124,155,033 112,577,052 100 110.28 10.28
Cost of goods sold 109,107,461 99,168,250 100 110.02 10.02
Gross profit 15,047,572 13,408,802 100 112.22 12.22

Rental and service

income 916,351 828,140 100 110.65 10.65
interest on sales
arrears 703,328 673,241 100 104.47 4.47
Amortization of
deferred credit 790,289 591,354 100 133.64 33.64

Profit from
operations 17,457,540 15,501,537 100 112.62 12.62

Operating
expenses:
Distribution cost 11,797,778 10,692,061 100 110.34 10.34
Administrative
expenses 1,379,080 1,312,983 100 105.03 5.03

Other operating
expenses 957,194 241,324 100 396.64 296.64

Other operating
income 1,446,568 1,855,118 100 77.98 -22.02

Operating profit 4,770,056 5,110,287 100 93.34 -6.66

Finance cost 789,247 860,715 100 91.7 -8.3
Profit before
taxation and share
from associate 3,980,809 4,249,572 100 93.68 -6.32
Share in profit of
associate - before
tax 422 485 100 87.01 -12.99
Profit before
taxation 3,981,231 4,250,057 100 93.67 -6.33
Taxation 1,484,541 1,571,714 100 94.45 -5.55
Profit after
taxation 2,496,690 2,678,343 100 93.22 -6.78

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INCOME STATEMENT VERTICAL ANALYSIS

FOR THE YEAR ENDED JUNE30, 2015

Items Vertical
2015 2014 Analysis
Rupees in Figures in %
Millions
Gas sales 123,404,537 122,091,652
Add / (Less): Differential margin / (development 750,496 -9,514,600
surcharge)
Net Sales 124,155,033 112,577,052 100
Cost of goods sold 109,107,461 99,168,250 87.88
Gross profit 15,047,572 13,408,802 12.12

Rental and service income 916,351 828,140 0.74

Surcharge and interest on sales arrears 703,328 673,241 0.57
Amortization of deferred credit 790,289 591,354 0.64

Profit from operations 17,457,540 15,501,537 14.06

Operating expenses:
Distribution cost 11,797,778 10,692,061 9.5
Administrative expenses 1,379,080 1,312,983 1.11

Other operating expenses 957,194 241,324 0.77

Other operating income 1,446,568 1,855,118 1.17

Operating profit 4,770,056 5,110,287 3.84

Finance cost 789,247 860,715 0.64
Profit before taxation and share from associate 3,980,809 4,249,572 3.21
Share in profit of associate - before tax 422 485 0
Profit before taxation 3,981,231 4,250,057 3.21
Taxation 1,484,541 1,571,714 1.2
Profit after taxation 2,496,690 2,678,343 2.01

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Balance sheet Vertical Analysis
For the Year ended June 2015
Items
EQUITY AND LIABILITIES 2015 2014 Vertical Analysis
%
Share capital and Reserves (Rupees in
Millions)
Authorized share capital
ordinary shares of Rupees 10 each 1,500,000,000 1,500,000,000
Issued, subscribed and paid up capital 5,491,053 5,491,053 32.04
Revenue reserves 11,647,796 10,798,422 67.96

Total equity 17,138,849 16,289,475 100

Non-current liabilities
Long term financing:
Secured 62,500 662,500 0.12
Unsecured 2,717,963 3,710,181 5.32
Security deposits 9,068,102 7,270,407 17.73
Deferred credit 31,386,548 23,108,412 61.38
Deferred taxation 7,562,412 6,752,570 14.79
Employee benefits 336,667 331,754 0.66
Total non-current Liabilities 51,134,192 41,835,824 100
Current liabilities
Trade and other payables 27,416,384 22,810,592 93.33
Interest / markup accrued 396,323 467,452 1.35
Current portion of long term financing 1,561,895 2,281,243 5.32
Total current Liabilities 29,374,602 25,559,287 100
Total liabilities 80,508,794 67,395,111
TOTAL EQUITY AND LIABILITIES 97,647,643 83,684,586

ASSETS
Non-current assets
Property, plant and equipment 62,165,176 50,036,217 99.01
Intangible assets 29,441 17,713 0.05
Investment in an associate company 4,900 4,978 0.01
Long term loans 224,645 222,310 0.36
Employee benefits 357,140 54,756 0.57
Long term deposits and prepayments 7,138 6,406 0.01

Total Non-Current Assets 62,788,440 50,342,380 100

Current assets
Stores and spare parts 2,287,084 1,089,526 6.56
Stock in trade 525,370 473,404 1.51
Trade debts 18,757,385 16,229,067 53.81
Loans and advances 148,403 181,414 0.43
Trade deposits and short term 95,428 33,293 0.27
prepayments

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Interest accrued 40,988 72,756 0.12

Other receivables 2,235,441 1,319,206 6.41
Taxation – net 764,521 134,079 2.19
Sales tax recoverable 1,356,339 263,233 3.89
Short term investments 511,096 0 1.47
Cash and bank balances 8,137,148 13,546,228 23.34
Total current assets 34,859,203 33,342,206 100
TOTAL ASSETS 97,647,643 83,684,586

Balance sheet Horizontal Analysis

For the Year ended June 2015
Items
EQUITY AND 2015 2014 Base Current
LIABILITIES Year Year
(2014) (2015)
Share capital and (Rupees in Millions)
Reserves
Authorized share
capital
ordinary shares 1,500,000,000 1,500,000,000
of Rupees 10 each
Issued, 5,491,053 5,491,053 100 100 0
subscribed and
paid up capital
Revenue reserves 11,647,796 10,798,422 100 107.87 7.87

Total equity 17,138,849 16,289,475 100 105.21 5.21

Non-current
liabilities
Long term
financing:
Secured 62,500 662,500 100 9.43 -90.57
Unsecured 2,717,963 3,710,181 100 73.26 -26.74
Security deposits 9,068,102 7,270,407 100 124.73 24.73
Deferred credit 31,386,548 23,108,412 100 135.82 35.82
Deferred taxation 7,562,412 6,752,570 100 111.99 11.99
Employee 336,667 331,754 100 101.48 1.48
benefits

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Total non- 51,134,192 41,835,824 100 122.23 22.23

current
Liabilities
Current liabilities
Trade and other 27,416,384 22,810,592 100 120.19 20.19
payables
Interest / markup 396,323 467,452 100 84.78 -15.22
accrued
Current portion 1,561,895 2,281,243 100 68.47 -31.53
of long term
financing
Total current 29,374,602 25,559,287 100 114.93 14.93
Liabilities
Total liabilities 80,508,794 67,395,111 100 119.46 19.46
TOTAL 97,647,643 83,684,586 100 116.69 16.69
EQUITY AND
LIABILITIES

ASSETS
Non-current
assets
Property, plant 62,165,176 50,036,217 100 124.24 24.24
and equipment
Intangible assets 29,441 17,713 100 166.21 66.21
Investment in an 4,900 4,978 100 98.43 -1.57
associate
company
Long term loans 224,645 222,310 100 101.05 1.05
Employee 357,140 54,756 100 652.24 552.24
benefits
Long term 7,138 6,406 100 111.43 11.43
deposits and
prepayments
Total Non- 62,788,440 50,342,380 100 124.72 24.72
Current Assets
Current assets
Stores and spare 2,287,084 1,089,526 100 209.92 109.92
parts
Stock in trade 525,370 473,404 100 110.98 10.98
Trade debts 18,757,385 16,229,067 100 115.58 15.58
Loans and 148,403 181,414 100 81.8 -18.2
advances
Trade deposits 95,428 33,293 100 286.63 186.63
and short term
prepayments
Interest accrued 40,988 72,756 100 56.34 -43.66
Other receivables 2,235,441 1,319,206 100 169.45 69.45
Taxation – net 764,521 134,079 100 570.2 470.2
Sales tax 1,356,339 263,233 100 515.26 415.26
recoverable
Short term 511,096 0 100
investments
Cash and bank 8,137,148 13,546,228 100 60.07 -39.93
balances

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Total current 34,859,203 33,342,206 100 104.55 4.55

assets
TOTAL ASSETS 97,647,643 83,684,586 100 116.69 16.69

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Ratio Analysis
Days' Sales in Receivables:
Purpose of Ratio: It indicates the average time in days, that receivables are outstanding (DSO). It
helps determine if a change in receivables is due to a change in sales, or to another factor such as
a change in selling terms.

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Formula:

Gross Receivables
Annual Net Sales / 365

Calculation:

For year 2015:

18757385+1428181
124155033 / 365

= 59.3429 Days

For year 2014:

16229067+1122774
112577052 / 365

= 56.2465 Days

Competitor Days sales in Receivable: = 50.4 Days

YEAR 2015, YEAR 2014, Competitor

59.3429 56.2465 Value, 40.4

Interpretation:

 This ratio tells that our account receivable in one day sale is converted into cash in 59.3429
days

 Lower the ratio, better the company position and vice versa

 As compared to 2014, we are at weaker position as our ratio increase to 59.3429 days

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 We are at better condition than our competitors

Debt to equity ratio

Purpose of Ratio: Indicates how well creditors are protected in case of the company's insolvency

Formula

Total Liabilities___
Total Shareholder equity
Calculation:

For year 2015:

=80508794/17138849)×100

=104.69%

For year 2014:

= (67395111/16289475) ×100

= 104.1373%

Industry Average: = 103.08%

YEAR YEAR Industry

2015, 2014, Averages,
104.69% 104.14%Y 103.08%

Interpretation:
 We have 104.69%of total liability as compare to equity.
 The better the ratio the stronger the company
 We are at better condition than industry
 As compare to 2014 we are at Stronger position

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Debt to tangible net worth

Purpose of Ratio: To know the long term debt paying ability of the firm from tangible Assets

Formula

Total Liabilities
Total Shareholder equity – Intangible Assets
Calculation:

For year 2015:

=80508749/(17138849-29441)

= 4.705 ×100 = 104.705%

For year 2014:

= (6739511/(16289475-17713) ×100 = 104.14%

Interpretation:
 We have 104.705%of total liability as compare to net worth of equity.

 The better the Ratio, stronger for paying its liabilities

 As compare to 2013 we are at Stronger position

Sales to fixed assets

Purpose of Ratio: To know the profitability of the firm or to know how efficiently management
utilize fixed assets.

Formula

= Net sales_______
Average Net fixed assets
Calculation:

For year 2015:

Calculation of Average Fixed Assets = [(62165176-10269886)+(50036217-6513194)]/2

= 47709157

Putting the Value in Formula:

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= 124155033/47709157

= 2.60 time/year

For year 2014:

Calculation of Average Fixed Assets = [(50036217-6513194)+(43561473-5402146)]/2

= 2.7564 time/year

Competitor Ratio for 2015: = 2.56times per year

YEAR 2014, Competitor

YEAR 2015, 2.6 2.7564 Value, 2.56

Interpretation:

 Our fixed assets are converted into sales 2.60 times a year.

 The better the Ratio; the better the company position

 We are at better condition than our competitor

 Weaker position as compare to 20014.

CONCLUSION

The overall economy of the country is gradually improving and provided banks of all sizes to
take advantage. JS Bank has a fast growing deposit structure and it looks ready to lend, should
there be demand from private sector. JS Bank has a relatively clean book, with non-performing
loans well in check. An improvement in Current account and saving account (CASA) ratio and

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further drop in cost of deposit should be the next step forward. JS Bank has outperformed all the
Primary Dealers during what has been an extremely challenging year for Pakistani banking. JS
Bank is counted amongst the most performance driven banks on Pakistani landscape. All in all,
things look sound enough for JS Bank to continue to prosper in the near future.

SUGGESTIONS

I may like to suggest some points regarding improvement, development and competitive
environment for any good and required need of customers business. The bank's management has
to introduce new training programs in coordination with the HR Department. This program should
update the employees with the current economic situation of Pakistan, the latest trends and the

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possible outcomes in the future. This program should include training that would help the
employees to deal in a much better way with the customers. I sensed that there is a lack of
organizational citizenship in the employees of the bank. The reason is that the profits which the
bank is making due to their efforts is being used to cover losses faced by the sister companies of
JS Bank and so JS employees are not getting raise in their salaries, bonus or other financial benefits
. The top management and the Board of Directors must find a solution towards this problem.
Because if this continues it will cause dissatisfaction among the employees. They will either leave
the organization or will not work with the same level of commitment. JS Bank is in no position to
face this loss. The top management has to find ways to solve this problem soon and at the same
time what they can do is take some load off the employees temporality so that they don’t get over
stressed.Secondly the bank has to increase its advertising of products and services. Honestly I think
that the top management is quite reluctant to spend money on advertising. This is beyond my
understanding. The reason might be that it is looking to save its funds but this is not the proper
way to do it. As stated earlier that the bank is fairly new and the staff including the top management
has less banking experience. This is one of main reason that it is not paying the much needed
attention on advertising its products. Bank involvement in cricket advertising in the Gulf region is
commendable but it has to advertise about its products in the local print and electronic media in
the same way other banks are doing in Pakistan.

 Aggressive training and development programs should be launched in order to teach

employees basic skills and to increase them subsequently through mobile training programs
conducted at Regional level.
 Capacity building of officers should be increased to improve efficiency levels.
 Through processing and sanctioning Procedure’s have been streamlined in line with
modern lines but there is still lot to be done in this direction.
 Promotion policies should be based on academic and Professional qualification
performance rather than seniority.
 Intermediation and administrative cost should be reduced to minimum level.
 Proper teams should be constituted which should be made responsible for recovery of
overdue and watch and ward duties of pledged stock and surprise inspections of
Hypothecated stocks and constant liaison with borrowers.

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REFERENCES

www.jsbl.com

http://www.investopedia.com/articles/general/071213/retail-banking-vs-commercial-banking.asp

http://www.investorwords.com/16284/corporate_banking.html

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https://en.wikipedia.org/wiki/Investment_banking

http://www.wallstreetprep.com/knowledge/about-investment-banking/

http://www.deposits.org/dictionary/term/institutional-banking/

http://readanddigest.com/what-are-the-different-types-of-cheques/

https://en.wikipedia.org/wiki/Cheque

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