Internship Report BOP

FOR THE BANK OF PUNJAB CAVALRY GROUND BRANCH
3/25/2013
Authored by: Abdullah Javed
Internship Report
For the month of Jan 2013 to March 2013

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InternshipReport|3/25/2013
Acknowledgment
I am very thankful to “Almighty Allah” the most beneficent, the most mercy full who
has given the strength to complete this task. I am also thankful to branch manager and
operational manager respectively of the bank of the Punjab Cavalry Ground Branch.
Without whose guidance and support it would not have been possible for me to
accomplish this assignment.
Furthermore, I am indebted to the staff of the Bank of Punjab Cavalry Ground Branch.
From whom I have gained much experience regarding operational work of bank is
concerned.

2
Introduction of Banking in Pakistan
Banking plays a major role in a country’s economy. After partition of India and Pakistan
British government’s commission distribute the reserves between Pakistan and India.
In August 1947, various Banks transferred their headquarters and funds to India.
Before partition of Pak-o-Hind, some Banks were operated which were Chartered Bank,
Grind-lays Bank, Imperial Bank of India, Australasia Bank and Habib Bank. After the
independence of Pakistan, Muslim Commercial Bank Limited, Bank of Bahawalpur
Limited, Punjab National Bank and National Bank of Pakistan were providing banking
facilities to general public.
The State Bank of Pakistan was inaugurated by our great leader Muhammad Ali Jinnah.
On 1st July 1948. Australasia Bank and Habib Bank were providing facilities to the
Pakistan’s nation. After some period, Australasia Bank Limited was converted into
Allied Bank of Pakistan.
State Bank of Pakistan is a Central Bank of Pakistan. Other Banks are Commercial
Banks, Specialized Bank and Investment Banks.
Now a day in Pakistan, fifty four banks are operated with thousands of branches. Banks
are providing Banking facilities to their customers and clients by offering different
services and packages.
Pakistan’s banking sector consisting of Islamic Banks, Private Banks, Public Sector
Banks, and Micro Finance Banks. These Banks are doing Corporate Banking, Trade
Financing, Lease Financing and some Banks are providing online banking facilities,
ATM facility and money transfer facilities also.
Banking sector is a back bone of our economy. If this sector is making progress than
whole economy is also growing a lot. Our Agricultural sector, Industrial sector, Mining
sector, Export sector all depend on the banking industry because Banks provide long
term funds as well as short term funds to all these sectors to meet out their short term
as well as long term requirement. Hence, banking progress is necessary indeed.

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Overview of the Organization
The Bank of Punjab started functioning with the inauguration of its first branch of 7-
Egerton Road, Lahore on November 15, 1989. The founder of the bank Mr. Nawaz
Sharif performed the inauguration.
The Bank of Punjab is working as a scheduled bank with its 273 branches in all major
cities of the country. The bank provides all types of banking services such as Deposit
in Local currency, Client Deposits in Foreign currency, Remittances and Advances to
businesses, trade, industry and agriculture. The Bank of Punjab ahs entered into a new
era of science to the nation under the experienced and professional hands of its
management.
The Bank of Punjab has played a vital role in the national economy through
mobilization of untapped local resources, promoting savings and providing funds for
investments.
The Bank of Punjab has played a vital role in the economy through mobilization of
untapped local resources, promoting savings and providing funds for investment.
The Bank of Punjab has the privilege to discharge its responsibilities towards national
prosperity and progress. Within the couple of years of its scheduling, the bank has not
only carved out for itself prominent niche in the mainstream banking of the country
but in certain areas it has the distinction of taking the lead. In short span of time the
Bank has been able to evolve a distinct corporate culture through of its owned-based
policies, which are realistic and are on highly professional footings.

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Vision Statement
To be a customer focused bank with service excellence.
Mission Statement
To exceed the expectation of our stakeholders by leveraging our relationship
with the Government of Punjab
and delivering a complete range of professional solutions with a focus on
programmed driven products and
Services in the agriculture and middle tier markets through a motivated team.
BOP Core Values
Our Customers as our first priority
Profitability For the prosperity of our stakeholders
that allows us to constantly
Invest, improve and succeed
Corporate
Social Responsibility To Enrich the lives of community where
we operate
Recognition and Reward for the talented and high performing
employees
Excellence in everything we do
Integrity in all our dealings
Respect for our customers and each other

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

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Consumer Finance
Types of consumer finance offered by Bank of Punjab are:
 Aasaish 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

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Electronic Banking
Electronic Banking also said as “e-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

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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

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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.

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The report is being made to fulfill the requirement of 8 weeks Internship done during
the course of ACCA.
The purpose of research work is to analyze the organization and the working of the
Banking System in Bank’s Branches of Bank of Punjab. My Internship Program was at
Cavalry Ground Branch of Bank of Punjab. It was experience of a lifetime to do
internship as it’s provided me an opportunity to learn all the basics and advance
procedure of the Banking System works in Branch of the Banks.
In this report, it contains the Basics and elements of this Cavalry Ground
Branch of BOP which I have learned from the Opera tional Manager Ghulam
Mujtaba and Mr Khalid Qureshi (who has now been Transferred to BOP
Wahdat Road Branch) and from Mr. Riasat Ali . The report contain only
those information I have learned through my Internship Program and I
have assumed it that this is the Best I have learned and worked.
Banking System
The purpose of the Bank is to accept the deposits , give the loan , collect the payments
for utility payments of Electricity , Gas , Water and providing the statement which is
called as Scrolls for the evidence that payment has been made.
Giving Loan by the bank has different criteria for different purposes, for example , the
client require loan for his manufacturing Business like Factories etc, he would be
offered for “Industrial Loan , some client needed for their retail Business like
Supermarkets ,Shop would be offered for Commercial loan and client needed loan for
only his personal assets would be offered as Personal loan.
All the rates and the system of all Banks are governed by State Bank of Pakistan.
The Deposits are made by opening an account in the bank by Account Opening Officer
who takes responsible for the account opening and maintaining of accounts to
customers . Customers are required that before opening of any account, Different
Documents are required for Different Customers.
For example:
Individuals who are working would be required to give proof of their work as a letter
from their Employers Respectively. It is explained at next page.

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Account Opening Requirements
Business such as Proprietorship would be required to present their National Tax
Number Certificate copy with the Firm’s Letter .
Other Business like Partnership would be required to present the Attested Copy of
Partnership deed signed by all Partners and also the Registration Certificate. Business
working as Limited Liability Company which is not listed in stock Exchange would be
require the “Certificate of Incorporation “ , the “List of Directors , Memorandum and
Articles of Association and the last resolution passed “. The Businesses listed in Stock
Exchange would require the Certificate of Commencement of Business, Copy of
Certified Form-29 issued by Security and Exchange Commission of Pakistan.
Any Non-Profit Organization would require the following Documents
-Copy of Rules/By-Laws
-Copy of Registration Certificate
-List of Executive Members, Management Committee, and Management Board etc
-the Last Resolution Passed
-A Document in writing for any changes in the Management Committee /Authorized
persons would be required and sent to Bank .
Every Account Opening Types Requires CNIC Copy with Relevant Documents.
Account Opening Process
After the completion of Required Documents, the account opening takes places as give
below
Account opening form is given to customer for competing and signed by the account
holder at different places of the form.
Account form is completed in all respect and checked by the bank officer and is duly
signed by the customer which is also verified by the Operation Manager.

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Signature specimen card (SSC) is compulsory for opening an account in the bank.
Without getting signature of customer you cannot open the account.
If client signature differs from the CNIC, the signature of the client is taken on a
signature difference form
The bank officer connected via internet to the NADRA website checks the record of his
customer’s social life. If the record of the person has clear report, then the officer of
the bank authenticates the record under his signature and stamp and send it to the
Branch Manager
The Account number is written on the cheque book requisition. After completion of all
procedures, the bank prepares a letter and sends it to the client at his postal address
to pay gratitude to the customer.
The first cheque book consists of 25 leaves and no charges are deducted from the
account the account of client. There after bank sends a recommendation for 25, 50
and 100 leaves with different prices and charges are deducted from the account of
clients.
Account Closing Process
When some circumstances happen that customer wants to close his account, the
procedures are that he fills up an account closing form and signs there in and
approval is taken from the Branch Manager . The Specimen card is taken back from
customer and is attached with the form and hence , account is closed.
Note: account balance should be at ‘nil’
Bank Statement Requisition
A requisition slip is taken from the customer duly signed and the period from which
the customer wants to take the statement. After verification of signature Bank
Statement is issue to the customer and Rs. 55 are deducted from account of customer

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Procedure for ATM/PIN Issuance
Bank of Punjab provides the ATM facility to its Customers and they can withdraw their
amount at any time through ATM. For issuance of ATM, customer has to sign an ATM
form and Bank office make an entry in the system and within 15 days bank receives
ATM card from Head Office which is given to the customer.
I have learned that Accounts works in 2 types. Saving Account and Current Account.
The Bank of Punjab has different account of Saving Accounts and Different Accounts
for Currents Accounts as a Product form.
Cash Deposits and Remittance
During the First and Second weeks , I have learned and applied how Cash are
deposited with deposit slips available, and how other than Cash like Cheques , Drafts
are posted in banks.
Cheque Processing
With Reference to Operational Manager Mr. Ghulam Mujtaba (in Training) . I have
learned the the Cheques process . There are two types of Cheques for processing.
-Open Cheques
-Crossed Cheques
Open Cheques can be cashed ,a customer can withdraw from his account in cash or it
can use it to pay others and Payee can withdraw cash from it
Crossed Cheques cannot be cashed or endorsed, it is only used for clearing and online
transfer from one account to another account , the amount is transferred using online
system using Remittance . Crossed Cheques can be simple crossed which is made by

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pen and used for collection processing. Special Crossed are often Banker’s Cheques
and already crossed and cannot be endorsed in cash, it is only Transferred from one
account to another account by clearing respectively.
I have been also told the reason for signing the cheque at back as it is to verify the
signatures are matched with the front of the check to avoid any misuse. The signs at
back are only made when the cheque is presented to the Banker.
Cheque Processing through Clearing
The transactions in clearing of cheques were little complicated to understand and
through the discussion I have learned from Operational Manager that how Cheques are
processed . The Process are explained Below
The Bank receive cheques and make a schedule of these cheques after making entries
in outward and inward clearing registers and sent them to main branch where at all
the cheques are sent to NIFT (it stands for National Institutional Facilitation
Technologies. Clearing house of SBP has shifted a part of its work to private institution
names). NIFT collects cheques, demand draft, pay order, travelers cheques etc. from all
branches of different banks within city through its carriers and send them to the
branches on which these are drawn for clearing. NIFT prepare a sheet for each branch
and send it to each branch as well as to State Bank of Pakistan where accounts of
Banks are settled.

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Types of clearing
There are Two Types of Clearing Process happens in Banks.
Inward clearing:
When cheques of other Banks are deposited in our bank, after clearing these cheques
through NIFT by the other Banks on which these are drawn. Accounts of customers are
credited.
Outward clearing:
When cheques of our bank are deposited in other Banks and these cheques are sent to
us for verification, we debit the of our client after verification their account.
What are the Advice and Vouchers ?
The Advices are any printed form to inform the bank that amount has been credited
/debited from the other banks
Vouchers are any form of slip like Cheque , Drafts that has been posted in the branch.

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Remittance
Remittance department transfers the fund form one bank to another bank and one
place to another place. In this department collection take place. The bank of Punjab
makes payment of only open cheque on the counter and prohibits the payment of
crossed cheques. Bank of Punjab transfer money from one place to another place by
way of payment order, demand draft, inward collection, outward collection.
Demand Draft
An order to pay money to the payee who is residing outside the city, Demand draft can
be for a customer who may or may not have and account in the bank but the other
person’s account must be maintained with the bank for which the payer has demanded
the demand draft.
Payment Order
Pay order is order money but this payment is to be made within city. In other words it
can be said that the payee and the payer should be in one city. In pay order payment
can be made in cash, clearing and transfer.

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Trade Finance
Advances and credit department is the most important department in the bank in this
department advances are giving to the business man, exporter etc. before giving
advance, credit worthiness of the borrower is taken into account i.e. character,
capacity, collateral, credit terms etc. advances are also given to different banks.
Principles while Advancing
Five principle that must be properly pragmatic while advancing money to borrowers i.e.
safety, liquidity, disposal, remuneration and suitability
Types of Lending
There are three types of lending short term, medium term and long term. However
they are further classified i.e. Running finance, Demand Finance, Cash Finance and
Letter of Guarantee
I have been told that this is mostly used in Trading purpose especially for the
Import/export Business by Cross-Border Letter of Credit (Outside the Country). it is
efficient for many Export business where they can easily find the buyer through the
bank by Commission Agent .
The Exporter can be informed by Agent that who sells and buys what . And the Bank
helps sending the Application to perspective buyer about the seller. Bank do not take
responsible for any qualities for goods sent to the buyer . The Bank also inform the
seller about the buyer’s bank and the Application is sent to buyer’s bank for the
possible trade from the seller of other countries. This will help the Cross Border
Trading Easy and Efficient of Import/Export Business. Bank earns the commission from
the Trade of Goods of seller.

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Conclusion
Though I have not been allowed to learn the whole Transactions in detail about the
banks due to security reasons, However, I have learned and access the General
Vouchers that all cheques and deposits have been correctly entered in the system.
Therefore I have made myself familiar with the whole bank how it works and deals with
the customers. I have volunteered myself by taking some time at the entrance of bank
and received customers and have deal with them effectively.
For the analysis and the brief history of the Bank of Punjab, his financial Statements, I
attain data by using internet from different websites, in which,
History of The Bank of Punjab Retrieved 10 June 2011 from Bank of Punjab web site
https://www.bop.com.pk/AboutUs.aspx
Product Detail. Retrieved 15 June 2011 from Bank of Punjab web site
https://www.bop.com.pk/Products.aspx
Annual Report, Retrieved 20 June 2011 from Bank of Punjab web site
https://www.bop.com.pk/Financial/AnnualAccounts.aspx

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