Internship report

ON
“THE BANK OF PUNJAB”
 Preface
It is the requirement of the BZU MULTAN that all students of BBA have to spend Six weeks in
any organization to get practical exposure and to get familiarized with the ways to live in the
organizational environment which is dramatically different from the educational environment.
That six weeks period called “Internship Period “, if spent properly and sincerely, enables the
students to be more confident, more knowledgeable, more responsible and, above all, more
committed to its work in the practical field. I have also been assigned to do internship of six
weeks period in BOP BRANCH DAIRA DIN PANNAH. It has enabled me to understand the
practical scenario and sharpen our decision making power and utilizing the resources in an
effective manner, so that our resources generate maximum profit. In preparing this report, I have
put all of my best efforts and tried my level best to give maximum knowledge. Despite of my all
the coherent efforts, I do believe that there will always be a room for improvement in the efforts
of learner like me.
 Acknowledgement:
In the name of ALLAH, the most kind and merciful. First of all I am very thankful to almighty
Allah. I am also thankful to my parents who pray for my success.
No one can say that I am perfect everyone should admit that without the help of ALLAH and his
people a man can’t get anything so, I bow my head before almighty ALLAH with gratitude. I am
also very much thankful and presents salute too many individuals who have helped me in
shaping this report .I am also very much thankful to lot of My respected staff and especially I
Am very thankful to the respected teachers of this course and all the students of BBA Hons.
 Executive Summary

is one of the leading banks of Pakistan incorporated in 1947. BOP Bank has made significant
contribution in building and strengthening both corporate and retail banking sector in pakistan.
This report is an upshot of my Eight weeks internship in Muslim Commercial Bank of Pakistan.
BOP Pakistan possesses an imperative and historical importance in the banking sector of
Pakistan .It always remains the center of hustles in business activities.
In this report I have mentioned different aspects of this banking organization which I evaluate
and observe during the course of my internship. First of all I mention the names of the persons
which help me for the completion of my report. In my report I also high light the overview of the
organization like about its history back ground, different hierarchical levels , I also mention in
my report the no of share and who owned how much shares,
In this report the detailed analysis of the organization has been done and all the financial,
technical ,managerial and strategic aspects have been evaluated to analyze the current position of
the organization .Along with it , the background analysis , the prevailing analysis ,the business
process analysis,and the internal environment and external environment of the organization have
been discussed and the recommendations & suggestions for the improvement have been made
whatever required.
There are many departments in BOP bank but I can just mention that departments in which I
visited and gather the information and learnt the working methods in those departments I also
name these departments and there workings. During my eight weeks internship program , I
mainly worked in many departments
 INTRODUCTION
The Bank of Punjab was founded by Tajammal Hussain and it functions as a scheduled commercial bank, with
a network of approximately 490 branches in major business centres throughout the country. It is the seventh
largest commercial bank of the Country. It provides a wide range of banking services including deposit in local
currency; client deposit in foreign currency; remittances; and advances to business, trade, industry and
agriculture. First Punjab Modaraba (FPM), a wholly owned subsidiary of the bank, was established in 1992,
and is being managed by Punjab Modaraba Services (Pvt) Ltd.

Vision Statement
The vision statement is “To be the leading financial provider, partnering with our customers for a
more prosperous & secure future”

Mission Statement
And mission statement is “We are a team of committed professionals, providing innovative
and efficient financial solutions to create and nurture long-term relationships with our
customers. In doing so, we ensure that our shareholders can invest with confidence in us”
 Organizational Hierarchy chart

Chairman

Board of Directors

Chief Executive
Officer

Executive Committee

Executive Incharges

Area Manager North Area Manager South

 Product Line
Deposits Products
 Current Account
 Basic Banking Account
 Tijarat Account (LCY)
 Supreme Current Account (FCY)
 Young Loin Saving Account ( New Product 2010 )

Profit Loss Sharing Term Account

Profit and Loss sharing Term Accounts offered by Bank of Punjab are:

 PLS Saving Account

 Senior Citizen Account
 Gharayloo Saving Account
 Ziada Munafa Saving Account
 PLS-Saving Profit plus Account
 Corporate Premium Account
 Supreme Saving Account (PLS)
 Supreme Saving Account (FCY)
 Corporate Premium Account

Consumer Finance
Types of consumer finance offered by Bank of Punjab are:
 Aasaih Loan
 Quick Cash
 Car Loan
 House Loan
 Small Cash Personal Loan
 BOP Motorcycle Loan
Commercial Finance
The Bank of Punjab offers following Commercial Financing Loans:

 Running Finance
 Cash Finance
 Demand Finance
  CNG Filling Station Scheme
 Auto Lease Financing Scheme
 Car Lease Financing Scheme
 Karobar Barao Scheme
 Fertilizers Dealers Financing Scheme
 Ali Akbar Group_ Franchise Financing Scheme
 Atlas Honda Limited _Authorized Dealers Financing Scheme
 Financing Scheme_ Purchase of Office/Shops

Electronic Banking
Electronic Banking provides non-stop banking convenience, twenty four hours a day, seven days
a week.

 Visa Debit Card

 Internet Banking
 ATM Network
 BOP Quick pay
 Call Center
Services

The Bank of Punjab is dedicate in its efforts to provide a quality banking experience to our
customer via a range of unique Banking Services

 Commercial Banking
 Online Banking
 Cash Management Services
 Utility Bills
 Lockers
 Treasury
 Western union Money Transfer

Agriculture Credit
Agriculture credit is provided to the farmers and livestock organizations.
Bank of Punjab provides following agriculture loans with a specific markup rate:

 Green Tractor Lease Finance

 Agri Finance Branch
 Agri Finance Scheme
 Kissan Dost Finance Scheme
  Second Hand Tractor Lease Finance Scheme
 Kissan Dost Aabiari Scheme
 Kissan Dost Mechanization Support Scheme
 Kissan Dost Farm transport Scheme
 Kissan Eslahi-e-Erazi Scheme
 Kissan Dost Live Stock Development Scheme
 Livestock Breed Improvement Trough VVW
 Kissan Dost Commercial Agro Services
 Kissan Dost Agri Mall Finance Scheme
 Corporate Farming Finance Scheme
 Commercial Lease Finances Tractor Scheme
 Demand Finance Sheds Construction and Civil Work
 Lease Finance Facility for Milked Animals
 Running Finance Livestock Poultry
 Kissan Dost Model dairy Farms (PDDC)
 Kissan Dost Model Milk Centre (PDDC)
 Kissan Dost Green House Finance Facility
 Kissan Dost Cold Storage Finance Facility
 Scheme for Controlled Shed
 Lease Finance Facility for Installation of Bio-gas Plant
 Group Finance to Small farmers
 Clean Credit Facility through Syngenta Franchises
 Zarkaashat Drip Irrigation System
 Markup of Schemes
Trade Finance
Trade finance is a loan provided to the importers and exporters to make their transaction
effective. This enhances the global business. The Bank of Punjab makes some trade processing
centers to cooperate the exporters and also to the importers in different cities of Pakistan such as
Lahore, Islamabad, Rawalpindi and Karachi.

Competitors
The competitors of the Bank of Punjab are the other commercial banks in Pakistan such as:
Muslim Commercial Bank Limited, Soneri Bank Limited, United Bank Limited,
Allied Bank Limited, Askari Bank Limited, Faisal Bank Limited, Standard
Chartered Bank Limited, Habib Bank Limited, Habib Metropolitan Bank Limited,
And Bank Al-Habib Limited
 Introduction to All Departments
The departments and divisions of Bank of Punjab are as follows:

 Retail Banking Division

 Special Assets Management Division

 Credit Administration Division

 Human Resource Division

 Finance division

 Information Technology Division

 Operations Division

 Credit Risk Management Division

 Corporate Banking Division

 Control and Compliance Division

 Training, Research, Communication and Public Division

 Consumer banking Division

 Audit and Inspection Division

 Law Division

Retail Banking Division

Retail banking division of the bank deals with the customers and executes their transaction
directly. It provides the services of saving account, mortgage loans, personal loans, debit cards,
accounts checking, credit cards, ATM cards.
Special Assets Management Division

The Bank will invest on behalf of its clients and give them access to a wide range of traditional
and alternative product offerings that would not be to the average investor. It includes the
automatic sweep of cash balances into a money market fund, as well as brokerage services.

Credit Administration Division

In this division, banks deals with the credit, banks give loans to individuals and to the
corporations.

Human Resource Division

This division performs the duty of hiring the employees, training the employees as well as
retaining the employees and if necessary, firing the employees.

Finance Division
This division controls the overall activities relating to finance i.e. monitoring the investment
activities, financing activities, Debit and Credit of funds and reasons there of with proofs.

Information Technology Division

This department controls and record the data related with the bank. The backup of all branches is
sent to IT department on daily basis.

Operations Division
This division controls the whole operation of all the branches and controls the cash activities,
cheques, account opening and other things about operations.

Training, Research, Communication & Public Division

This division conducts research on new products, trains newly hired employees, train old
employees on new and innovative circulars in banking sector. It also provides training on
customer relation management.
Audit and Inspection Division
This department of bank includes the Audit of all the branches; they do audit of the branches and
give some opinions to execute their transactions.

Law Division
In this division of BOP, lawyers are employee to solve the cases of the bank.

MY TASKS & ACTIVITIES

1st and 2nd WEEK

ACCOUNT OPENING DEPARTMENT
Account opening and closing is the function of accounts departments. Bank’s customer may be
individual (single or Joint ).
BASIC TO OPEN AN ACCOUNT
During the span of mine internship in BOP, I learned and observed a lot of about the opening of
an account . Basically I think that the opening of an account is the establishment of a contractual
relationship between the banker and the customer. By opening an account at a bank a person
becomes a customer of a bank .Further I am going to express the basic requirements and steps
involved in the opening of an account
SPECIMEN SIGNATURE CARD
When an Account is opened with BOP customer provides to the bank a specimen of the form of
signature which would appear on all his cheques to express his authority for the payment of
cheques drawn on his banker. This specimen is taken generally on card specially designed for
this purpose and rules for the customers , full name and account number are entered on it.

PROCEDURE TO OPEN AN ACCOUNT

According to my practice in BOP , when a customer wants to open an account ,the bank officer
gives him an application form .All information which is necessary to be known by the bank ,are
requirements of the application form .
Title of Account
Full name of applicants
Occupation
Address
Telephone No
Nature of business
Signature of the applicant
ISSUANCE OF CHEQUE BOOK
When a customer opens an account with the bank he is provided with cheque book for
withdrawals
From account .However, the first cheque book is given to the customer only when all the
required documents are checked. A cheque book contains Ten ,twenty five ,fifty or hundred
leaves . The cheque book also carries a requisition slip for the issuance of the new cheque book.
This slip is duly filled and signed by the customer .The signature of customer is verified by the
bank and new cheque book is issued to the customer and serial number of the cheque are duly
entered in the book of the bank

3rd WEEK
Working with auditors
During my internship I Work with auditors in second week .Each year the bank has an audit .
Auditors work on all departments .I worked with sir M. ZAHID and sir FIAZ AHMAD. During
with auditors work I learnt something new as dormant of account ,vouchers ,different binders,
general ledger and fixed deposits etc.
During the visit of auditors in BOP BRANCH DAIRA DIN PANNAH. I also met with
ROM(Regional Operation Manager) MALIK RABBANI HANJRA.
 4th WEEK
WORK ON DEPOSITE AND ONLINE SLIP :
In third week I also work on different slips these slips may be as deposits or online slips .
Deposits slips are those slips in which customers used two papers one is deposit slip other page
is carbon copy, one customer use these two pages slip for one time deposits money into their
account .
In deposit slip date ,name of branch amount in figures and amount in words ,title of account,
Account number ,contact number and customer signature are required .sometimes customers fill
those slips by itself but during my internship I fill those slip for many customers .Different
industries as THAL industry deposits their slip in their BOP Account and I am also fill deposit
slip for THAL industries customer .

5th WEEK
WORKING WITH GBO
During my internship I have spent a lot of time with (GENERAL BANKING OFFICER) SIR
PERVAIZ IQBAL. GBO perform many task as clearing ,Account opening ,scanning ,Account
number holder ,salary posting ,ATM issuer etc. I have not an access to a system but I perform
manual work .I observe GBO how complete all work with efficiency and effectiveness

6th WEEK
UTILITY BILLS COLLECTION
I worked in the utility bills collection departments as the BOP collects utility bills on behalf of
WAPDA,SUI GAS companies and Pakistan Telecommunication corporation by putting the
stamp on the utility bills “PAID”, Date of payment ,signature of the officer receiving the utility
bills . After receiving utility bills a list is made on the form which is called bills scroll form .
One copy of scroll is with the bank for evidence whereas the original copy with the receipt of the
bills is sent to the billing department of the respective corporation . The bank charge commission
on the bills .

Analysis
For the analysis, management and the investors make some ratio analysis, in which Liquidity
Ratios, Profitability Ratios, Market Ratios, Activity Ratios, Leverage ratios are familiar.

Ratios
In order to analysis the financial performance of the bank, investors and management use the
ratio analysis in which following ratios are calculated:

1. Liquidity Ratios
2. Leverage Ratios
3. Profitability Ratios
4. Activity Ratios
5. Market Ratios

Liquidity Ratios
Liquidity ratios means to measure short term solvency of the company. Ability of the company
to pay off its short term debt. Following ratios are calculated in order to measure the short term
solvency of the company

 Current Ratio
 Acid Test Ratio
 Working Capital
Current Ratio
Current Assets = Cash and Balance with Treasury Banks + Balance with other Banks
+Lending to Financial Institution + Short Investment + Short Advances +
Other Assets

Current Liabilities = Bill Payables + Short Borrowing + Short Deposit + Other

Liabilities

Current Ratio = Current Assets / Current liabilities

 Year 2006 Year 2007 Year 2008
=Rs.122,347,224 / Rs. 94,274,512 =Rs.173,120,729/ Rs.140,202,371 =Rs.128,967,953/ Rs.107,914,057
= 1.3 : 1 = 1.23 : 1 = 1.19 : 1

Workings:
For 2006
Current Assets = 14,054,859 + 3,722,089 + 11,846,823 + 20,501,978 +68,612,018 +
3,609,457
= Rs.122, 347, 224

Current Liabilities = 856, 448 + 6, 989, 424 + 83, 612, 299 + 2,816, 341
= Rs. 94,274,512

For 2007
Current Assets = 14,210,302 +1,927,662 + 2,450,000 + 65,857,861 + 82,885,788+
5,789,116
= Rs.173, 120,729

Current Liabilities = 937,647 + 15,857,522 + 120,423,225 + 2,983,977

= Rs. 140,202,371
For 2008
Current Assets = 10,685,057 + 2,178,455 + 633,333 + 20,038,517 + 89,323,454 +
6,109,137
=Rs. 128,967,953

Current Liabilities = 1,219,801 + 10,601,169 + 91,528,830 + 4,564,257

= Rs. 107,914,057

Acid Test Ratio

Current Assets = Cash and Balance with Treasury Banks + Balance with other Banks
+Lending to Financial Institution + Short Investment + Short Advances +
Other Assets

Current Liabilities = Bill Payables + Short Borrowing + Short Deposit + Other

Liabilities
Prepaid expenses = Advances, deposits, advance rent and other prepayments
 Acid Test Ratio = Current Assets – (Inventories + prepayments) / Current liabilities
Year 2006 Year 2007 Year 2008
= Rs.122, 347, 224- Rs.102, 571/Rs. = Rs.173, 120,729- Rs. 159,438/ =Rs. 128,967,953-Rs.161,553/
94,274,512 Rs. 140,202,371 Rs. 107,914,057
= 1.29 = 1.23 = 1.19

Workings:

For 2006
Current Assets = 14,054,859 + 3,722,089 + 11,846,823 + 20,501,978 +68,612,018 +
3,609,457
= Rs.122, 347, 224

Current Liabilities = 856, 448 + 6, 989, 424 + 83, 612, 299 + 2,816, 341
= Rs. 94,274,512
Prepaid Expenses = Rs.102, 571

For 2007
Current Assets = 14,210,302 +1,927,662 + 2,450,000 + 65,857,861 + 82,885,788+
5,789,116
= Rs.173, 120,729

Current Liabilities = 937,647 + 15,857,522 + 120,423,225 + 2,983,977

= Rs. 140,202,371
Prepaid Expenses = Rs.159, 438
For 2008
Current Assets = 10,685,057 + 2,178,455 + 633,333 + 20,038,517 + 89,323,454 +6,109,137
=Rs. 128,967,953

Current Liabilities = 1,219,801 + 10,601,169 + 91,528,830 + 4,564,257

= Rs. 107,914,057
 Working capital

Working Capital = Current Assets – Current Liabilities

Year 2006 Year 2007 Year 2008

=Rs.122,347,224-Rs. 94,274,512 =Rs.173,120,729- Rs. 140,202,371 =Rs. 128,967,953– Rs.107,914,057

= Rs.28,072,712 = Rs.32,918,358 = Rs.21,053,896

Workings:
For 2006
Current Assets = Rs.122, 347, 224

Current Liabilities = Rs. 94,274,512

For 2007
Current Assets = Rs.173, 120,729

Current Liabilities = Rs. 140,202,371

For 2008
Current Assets = Rs. 128,967,953

Current Liabilities = Rs. 107,914,057

Leverage Ratios
These ratios show the capital structure of the firm. Through these ratios we find that how the
firm finance their activities. It is more important for the lender to assess that the firm can repay
the loan amount ort not. Increasing debt increases the likelihood of bankruptcy of the firm.
Following ratios falls under this category,
 Time Interest Earned
 Debt Ratio
 Debt to Equity Ratio
 Debt to Tangible Net Worth
  Total Capitalization Ratio

Time Interest Earned Ratio:

Time Interest Earned = Profit before tax + Interest Expense (EBIT) / Interest Expense
Year 2006 Year 2007 Year 2008
=Rs.4,768,721/Rs.7,573,722 =Rs.4,855,569/Rs.13,939,377 =(Rs.16,832,906)/Rs.16,614,000
= 0.63 = 0.35 = -1.01

Working
Given in the Profit and Loss Account
For 2006
Profit before tax+Interest Expense = Rs.4, 768,721
Interest Expense = Rs.7, 573,722
For 2007
Profit before tax+Interest Expense = Rs. 4,855,569
Interest Expense = Rs. 13,939,377

For 2008
Profit before tax+Interest Expense = Rs. -16,832,90
Interest Expense = Rs. 16,614,000

Debt Ratio
Total Debt = Bills Payable + Borrowings from financial institutions + Deposits &
other accounts + Subordinate Loans + Liabilities against assets subject to
finance lease + deferred tax liabilities+ Other liabilities
Total Assets = Given in the Balance Sheet

Debt Ratio = (Total Debt / Total Assets) * 100

Year 2006 Year 2007 Year 2008
=Rs.148,729,423/Rs.164,855,137 =Rs.215,978,767/Rs.234,990,675 =Rs.182,165,419/Rs.185,909,120
= 90.21% = 91.90% = 97.99%
Working
For 2006
Total Debt = 856,448 + 6,989,424 + 137,727,606 + 0 + 40,988+298,616+2,816,341
= Rs.148,729,423

For 2007
Total Debt = 937,647 + 17,842,915 + 191,968,377 + 0 +40,321+2,205,530+2,983,977
` = Rs.215,978,767

For 2008
Total Debt = 1,219,801, + 12,278,773 + 164,072,532 + 0 + 30,632+ 0 +4,564,481
= Rs. 182,165,419

Debt / Equity Ratio

Total Debt = Bills Payable + Borrowings from financial institutions + Deposits &
other accounts + Subordinate Loans + Liabilities against assets subject to
finance lease + deferred tax liabilities+ Other liabilities
Total Equity = Share Capital + Reserves + Un-appropriated Profit

Debt to Equity Ratio = Total Debt / Total Equity

Year 2006 Year 2007 Year 2008

=Rs.148,729,423/Rs.10,658,9 =Rs.215,978,767/Rs.15,126,5 =Rs.182,165,419/Rs.5,040,94
68 67 9
= 13.95 = 14.27 = 36.13

Working
For 2006

Total Debt = 856,448 + 6,989,424 + 137,727,606 + 0 + 40,988+298,616+2,816,341

= Rs.148,729,423
Total Equity = 2,902,490 + 4,537,232 + 3,219,246
= Rs.10,658,968

For 2007
Total Debt = 937,647 + 17,842,915 + 191,968,377 + 0 +40,321+2,205,530+2,983,977
= Rs.215,978,767
Total Equity = 4,230,379 + 7,427,232 + 3,468,956 = Rs.15,126,567
 For 2008
Total Debt = 1,219,801, + 12,278,773 + 164,072,532 + 0 + 30,632+ 0 +4,564,481
= Rs.182,165,419
Total Equity = 5,287,974 + 7,427,232 + (– 7,658,686 (Loss)) = Rs.5,040,949

Debt to Tangible Net Worth

Tangible Net Worth = Total Assets – Liabilities – Intangible Assets

Debt to Tangible Net Worth = Total Debt / Tangible Net Worth

Year 2006 Year 2007 Year 2008
=Rs.145,614,466/Rs.16,095,2 =Rs.210,789,260/Rs.18,993,7 =Rs.177,601,738/Rs.3,735,61
48 25 3
= 9.05 = 11.10 = 47.54

Working
For 2006

Tangible Net Worth = 164,855,137 – 148,729,423 – 30,466

= Rs.16,095,248

For 2007

Tangible Net Worth = 234,990,675 – 215,978,767 – 18,183

= Rs.18,993,725

For 2008

Tangible Net Worth = 185,909,120 – 182,165,995 – 7,512

= Rs.3,735,613

Total capitalization Ratio

 Long Term Debt
Total Capitalization Ratio =
Long Term Debt + Shareholder's Equity
Year 2006 Year 2007 Year 2008
=Rs.36,296,156/ Rs.46,955,124 =Rs.55,571,712/Rs. 70,698,279 =Rs. 46,755,209/ Rs.51,796,158
= 0.9026 Times
= 0.7729 Times = 0.7860 Times

Long Term Debt = Deposit and other account + Liabilities against assets subject to finance
lease + Deferred tax liabilities + other liabilities

Working
For 2006
Long Term Debt = 35,880,568+ 23168+298,616+ 93,804
= Rs.36,296,156
= 36,296,156/ (36,296,156+10,658,968)
= 36,296,156/ 46,955,124

For 2007
Long Term Debt = 53,219,973+30615+2,205,530+115,594
= Rs.55,571,712
=55,571,712/ (55,571,712 + 15,126,567)
=55,571,712/ 70,698,279

For 2008
Long Term Debt =46,555,790+19859+0+ 179,560
= Rs.46,755,209
= 46,755,209/ (46,755,209+ 5,040,949)
= 46,755,209/51,796,158

Profitability Ratios
Profitability ratios measure the earning ability of the firm. Following ratios are calculated:
  Net Profit Margin
 Return on Assets
 DuPont Return on Assets
 Operating Income Margin
 Return on operating Assets
 Return on Total Equity
 Gross Profit Margin

Net Profit Margin

Net Profit = Profit after Taxation

Total Revenue = Markup/ return/interest earned

Net Profit Margin = Net Profit / Total Revenue

Year 2006 Year 2007 Year 2008
= Rs.3,804,255 / Rs.11,643,963 = Rs.4,454,018 / Rs. 17,539,538 = (Rs.10,084,940) / Rs.17,752,652
= 32.67% = 25.39% = -56.81%

Working
For 2006
Net Profit = Rs.3,804,255
Total Revenue = Rs.11,643,963
For 2007
Net Profit = Rs.4,454,018
Total Revenue = Rs.17,539,538

For 2008
Net Profit = Rs.-10,084,940
Total Revenue = Rs.17,752,652

Return on Assets

Net Profit = Profit after Taxation

Total Assets = Given in the Balance Sheet
 ROA = Net Income / Total Assets
Year 2006 Year 2007 Year 2008
= Rs.3,804,255 / Rs.164,855,137 = Rs.4,454,018 / Rs.234,990,675 = (Rs.10,084,940)/ Rs.185,892,973
= 2.31% = 1.895% = -5.425%

Working
For 2006
Net Profit = 3,804,255
Total Assets = 164,855,137

For 2007
Net Profit = 4,454,018
Total Assets = 234,990,675

For 2008
Net Profit = 10,084,940
Total Assets = 185,892,973

Activity Ratios
Activity ratios measure a firm’s ability to convert different accounts within their balance sheets
into cash or sales.

 Total Assets Turnover

 Fixed Assets Turnover

Total Assets Turnover

Total Assets Turnover Ratio = Interest or Markup / Total Assets

Year 2006 Year 2007 Year 2008
=Rs.11,643,963/Rs.164,855,137 =Rs.17,539,538/Rs.234,990,675 =Rs.17,752,652/Rs.185,892,973
 = 0.071 times = 0.075 times = 0.095 times
Working
Give in the Profit and Loss Account and Balance Sheet

For 2006
Markup/ return/interest earned = Rs.11, 643,963
Total Assets = Rs.164, 855,137

For 2007
Markup/ return/interest earned = Rs.17, 539,538
Total Assets = Rs. 234,990,675

For 2008
Markup/ return/interest earned = Rs.17, 752,652
Total Assets = Rs. 185,892,973

Fixed Assets Turnover

Fixed Assets Turnover Ratio = Interest or Markup / Fixed Assets
Year 2006 Year 2007 Year 2008
=Rs.11,643,963/Rs.2,068,744 =Rs.17,539,538/Rs.3,252,759 =Rs.17,752,652/Rs.3,471,838
= 5.63 times = 5.39 times = 5.11 times

Working
Give in the Profit and Loss Account and Balance Sheet
For 2006
Interest or Markup = Rs.11, 643,963
Fixes Assets = Operating Fixes Assets= Rs.2, 068,744
For 2007
 Interest or Markup = Rs.17, 539,538
Fixes Assets = Operating Fixes Assets = Rs.3, 252,759

For 2008
Interest or Markup = Rs. Rs.17, 752,652
Fixes Assets = Operating Fixes Assets = Rs.3, 471,838

Market Ratios
Market ratios are commonly used by the investors to access the performance of a business as an
investment and also the cost of issuing stock.

 Dividend per share

 Earning per Share
 Price / Earning Ratio

Dividend per share

Dividend per share = Dividend paid to Shareholders / Number of shares outstanding

Note: Bank of Punjab has not paid dividend so this ratio is not calculated

Earning Per Share

Earning Per Share = Net Income / Average No. of Shares Outstanding

Year 2006 Year 2007 Year 2008
=Rs.3,804,255,000/Rs.289,602,365 =Rs.4,454,018,000/Rs.423,037,901 =(Rs.10,084,940,000)/Rs.528,797,376
= Rs.13.14 = Rs.10.53 =Rs.(-19.07 )
Price / Earning Ratio

Price to Earning Ratio = Market Price per Share / Earning per Share
Year 2006 Year 2007 Year 2008
= 101 / 13.14 = 97.85 / 10.53 = 13.20 / -19.07
= Rs.7.69 = Rs.9.29 = Rs.( -6.50)
 SWOT ANALYSIS
Strengths:
Strength can be defined as an area where a company is best at doing something or a feature that
puts the company at an advantage in comparison to its competitors. BOP enjoys the following
strengths:
 BOP is a well-established bank enjoying long history of over 55 years of experience and
profitable operation.
 BOP was the first privatized bank that gives it an edge over other nationalized banks as it
can develop any strategy consistent with the demand of market and free from any
political or bureaucratic influence.
 BOP is the largest private bank in Pakistan and third largest bank among all banks.
 It has the largest branch network among private banks of Pakistan.
 BOP is the market leader in introduction of e-banking and it has the largest ATM
network in the country.
 The Banks’ Rupee Traveler Cheques have been market leaders for the past six years.
 BOP rated the best domestic bank for two consecutive years of 2000 and2001 by euro
money, a leading international publication.
 BOP has forged strategic alliances with international banks for expanding its network
further, both locally and internationally.
 BOP has forged strategic alliances with international banks for expanding its network
further, both locally and internationally.
 BOP has the ability to bring innovative products and services like personalized service,
electronic funds transfer, sophisticated financial products such as electronic banking,
auto-teller machines and evening banking.
 BOP has been very effective in controlling costs as it successfully restructured itself after
its privatization. During this process more than1, 600 employees were relieved under a
golden handshake scheme and 110 branches were closed.

Weaknesses:
A weakness is defined as an area in an organization where the organization is not as good at
doing something as its competitors or a thing which an organization lacks thus putting the
organization at disadvantage in comparison to its competitors. Based on the above definition,
BOP has the following weaknesses.

 Mission of BOP is not well defined. It restricts BOP from extending its operations to
other countries. This is evident from this sentence of the mission statement “Our mission
is to become the preferred provider of quality financial services in the country. “Either it
 means that BOP will not provide quality service in other countries where it operates or it
will not extend its operations to other countries. In either case, the bank suffers.
 The overseas branch network of BOP is limited. It has only four overseas branches
whereas HBL has twenty overseas branches, three subsidiaries, two affiliates, and one
representative office. Similarly NBP has fifteen overseas branches, one subsidiary, and
four representative offices.
 Employees at branch level are not properly motivated to work by heart. They take the all
routine activities as a boring job.
 Most of the employees lack managerial training as they are not properly educated.

Opportunities:

BOP bank has following opportunities such as:

 Develop E-transactions
 Enhance sales of RTC (Rupee traveler cheque)
 New products of financing services
 Advertisements
 Enlarge foreign network of branches
 Anti-money laundering techniques
 Improvement in Information technology

Threats:

BOP has following threats:

 Changing in government rules & regulations

 Low discount rates
 Decline in treasury bills discount rates
 Decrease in customer purchasing power

Applications Of Class Room Learning

I saw some practical application of some class room learning. I saw most of knowledge
application in Trade finance department, Credit Administration and Credit marketing. Operation
department had less knowledge application.
At Trade Finance Department, I got a lot of practical exposure of studying International Finance.
Since this department mostly deals with imports and exports, I saw t h e p r o c e s s i n g o f
letter of credit and the documents needed for imports and exports.
Customers were coming for the purpose of their business and they were informed about t h e
rules and regulation for importing and exporting. Letter of guarantees
w e r e a l s o issued by the department.
At the Credit Department, my practical learning was excellent. At this department, the
loans are to be disbursed. So for this purpose a complete interview with borrower is
conducted and borrower is asked about its financial strength then a CLP is made.
Loan is disbursed after the complete study of financial reports such as balance sheet
and income statement. Making of installments, interest charging and calculation and others all
were practically performed at the department. Strategic planning and quality control are two
processes that empower managers by providing vehicle for iteratively monitoring and modifying
performance in order to achieve a desired level of performance. In my view strategic planning
and quality control are interrelated processes. Strategic planning is an effort to produce
fundamental decisions and actions that shape and guide what an organization is, and what it
does. This is accomplished by setting or changing organizational objectives, identifying and
obtaining the resources required to meet these objectives, and determining the strategies,
programs, and policies needed to accomplish the objectives. Quality control can be defined as a
set of activities or devices that help to attain the excellence of something. It is a process of
establishing standards of comparison against which to check the results of a process. The control
of quality is accomplished by the establishment of measurable standards for comparison against
measures of quality characteristics. Quality characteristics are any properties that define or
describe the nature of a product.

Conclusion
The conclusion is that BOP now develop a good image in the market. Although there is a tough
competition in the market, but BOP is continuously going on its way to prosperity. And also
build up a good image in the mind of its customers. This is all due the company’s high quality
products & services
As I have studied and analyzed BOP Bank Ltd I found out that this a good bank as its working,
management is concerned.
First of all the reason of this is that there is no directive style in the management of 
BOP and which shows that there is decentralization in the Bank and every branch manager can
take decision according to the situation.
BOP is providing their customers with wide range of services including online banking,
virtual banking and some of their new products in the pipeline; include ATM network etc shows
that BOP Bank is taking good care of their customers. BOP Bank made heavy investments,
towards enhancing its capabilities in the area of automation and technology.
BOP is well positioned to meet client needs, with improved competitive advantage.

SUGGESTIONS

An organization considered to be lucky whose bad debts are recovered, the bank of Punjab
having too much bad debts due to preference of loans to dictators.
My opinion to raise the profit of BOP, first they recover their bad debts. If they do it,
Then their profitability ratio will exceed.

In my analysis, BOP consumes their operating incomes as regarding the year 2008. I will not say
to close their costs because these are not to be closed but these are to be reduced.

According to statements of 2008, in Bank of Punjab having no much shares of investors. The
bank of Punjab depends on the debt, who improves the price to earnings ratio. For the life of the
bank, the upper management will make some strong strategies, who compete it from the
competitors. In my internship program, I see mostly the persons of government job holders make
their accounts in the branch.

Reference & Sources

www.google.com
www.bop.com.pk
http://www.bop.com.pk/uploads/FCG/docs/Annual%20Report%202013_1.pdf
www.wikipedia.com