INTERNSHIP REPORT ON

BANK OF PUNJAB

Internship Report submitted to the Faculty of Management & Administrative

Sciences in Partial Fulfillment of the Requirements for the Master of
Business Administration.

Program & Session MBA (4th) H

UNIVERSITY OF GUJRAT
Date of Submission

Name of Program Coordinator ___________________

Signature of Program Coordinator_________________

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MBA 4th
Dedication

I Dedicate This Work To My

Honorable Parents

Who have been a great source of love,

affection and encouragement throughout my academic career and their
matchless sacrifices in the process of my upbringing make me respectful to
all human talk.

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Acknowledgement

Praise be to Almighty Allah, the Most Merciful and Magnificent and to his Holy
Prophet Muhammad (Peace Be Upon Him) who is forever a torch of guidance
and knowledge for humanity as a whole.

I feel deep sense of gratitude to HASSAN NAWAZ manager of The Bank of

Punjab khiali Gate Gujranwala Branch for allowing to me to do my internship
and also providing me necessary assistant and guidance. I am also highly
grateful to Mr.salman (Agri. Relationship Manager) & Mr. Kamran (OG III)
who helped me during my training while performing complex tasks as well as
the departmental heads of the bank especially operations related
department.

I owe depth of gratitude to my affectionate parents, and other peoples who

supported me morally and inspired me to the higher ideas of life.

My gratitude also goes to all those friends who provided me any assistance
in what so ever manner in the preparation of this study.

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Executive Summary

I have presented my report into 3 main sections. In the 1st section I have
described the introduction, nature and history of BOP. Details of products and
services, introduction of all departments and the branch where I did my
internship and the task done by me during my training.

In the 2ndsection I’ve made the complete ration analysis, vertical and
horizontal analysis and BOP comparison with the industry. In 2008 critical
analysis does not provide satisfactory results, the main reason is the loss on
revaluation of assets (Hamas Khan Fraud cause).

In the 3rd section I have suggested some recommendations in the light of

ratios and SWOT analysis. BOP has negative working capital in all the three
years so it is essential to increase current assets and reduce investment in
fixed assets. Annexes and reference and sources used are also described in
this section.

Since the incorporation the Bank has grown manifold showing remarkable
growth in all aspects. Especially, after the current management took over the
affairs of the bank in 2007 there has been tremendous growth in all its facets
of operations as a result of application of prudent and pragmatic policies with
futuristic approach. Owing to its significant performance, profitability,
financial standing and market penetration the Bank has attained reputation

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of a responsible corporate citizen playing a pivotal role in economic and
social development of the country.

Sound financial footing, improved profitability and competent management

are the key factors taken into consideration by PACRA, the credit rating
agency, while assigning to the Bank highly credible ratings of AA for long-
term and A1 for short-term which is the highest rating in this category.

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Table of Content

Title Page
Dedication
Acknowledgement
Executive Summary
AboutBankOFPunja..…………………………………... 8
Mission and Vission Statement….……………………... 9
Punjab Govt Show Faith In The Bank Of Punjab…… 9
CORE VALUE………………………………….……..... 9
AWARDS AND ACHIEVEMENT……………………. 9
PRODUCTS……………………………………………. 10
Depositsproducts…...……………………….. 10
BOP Basic BAnk Account………………….. 10
BOP Tijarat Account……………………….. 12
BOP FCA Supreme
Account………………………… 13

PROFIT AND LOSS SHARING TERMS ACCOUNT.. 15

Product……………………………………….. 15
Premature Encashment…………………….. 16
Miscellaneous………………………………… 17
Corporate premier Term
Account……………… 17

General Corporate
Entities…………………………… 17

Munafa Hi Munafa Term

Account………………… 17

Bai Missal Term Deposit

Account……………….. 18

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 PROFIT LOSS SHARING CHEQPNG
ACCOUNTS……………………… 19

PLS Saving
Account……………………………………… 19

Senior Citizens Saving

Account…………………….. 21

Gharayloo Saving
Account……………………….. 22

ZaidaMunafa Saving
Account………………….. 24

LOANS
PRODUCTS…………………………………………………………….
25

Commercial
Finance………………………………….. 25

Against GOVT
Securities………………………….. 27

Against Hypothecation Of
stocks……………. 28

CASH
FINANCE…………………………………………. 29

CONSUMER
FINANCE………………………………………………………… 30

Asian Loan……………………………………………………
30
Quick
Cash…………………………………………………… 34

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 Car Loan………………………………………………………
37

AGRICULTURE
CREDIT………………………………………………………. 41

AGRICULTURE
LOANS………………………………………………………. 42

Kisan dost scheme…………………………….

43
Agriculture Schemes Markup…………………
44
Scheme for Controlled Shed………………….
46
Agriculture Finance Scheme…………………
48
Model Dairy Farms……………………………
49
TRADE PROCESSING CENTERS…………………….. 53

COMMERCIAL BANKINGS…………………..
54

CORPORATE AND INVESTMENT BANK….

54

CASH MANGEMENT SERVICE……….. 56

UTILITY BILLS…………………………….. 56

LOCKER FACILITIES…………………….. 56

ATM LOCATIONS………………………….. 57

1 LINK NETWORKS………………………….. 57

SUGGESTIONS…………………………………………… 59

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 SWOT ANALYSIS………………………………………… 59
CONCLUSION……………………………………………………………………
. 64

Reference and Sources Used………………………………….. 66

About Bank of punjab

Established in 1989, in pursuance of The Bank of Punjab Act 1989 and was given the
status of scheduled bank in 1994. The Bank of Punjab is working as a scheduled
commercial bank with its network of 273 branches at all major business centers in the
country. The Bank provides all types of banking services such as Deposit in Local
Currency, Client Deposit in Foreign Currency, Remittances, Advances to Business,
Trade, Industry and Agriculture A wholly owned subsidiary of BOP First Punjab
Modaraba (FPM) was established in 1992 and is being managed by Punjab Modaraba
Services (Pvt) Ltd.( 272 branches )

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 Vision statement

To be a customer focused bank with service excellence"

Mission statement

To exceed the expectations 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 & services in the Agriculture and Middle Tier
Markets through a motivated team.

Punjab Government Shows Faith in Bank of Punjab

Punjab Government wishes to state that being the major stake holder in the Bank of
Punjab it has full faith in the new management and operations of the Bank. The
government further pledges its unequivocal support to the Bank and firmly believes that
the affairs of the Bank are sound and its financial health robust. (Finance Department)

Core Values

Our Customer As our first priority

Profitability For the prosperity of our stakeholders that allows us to constantly invest,

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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 every thing we do.
Integrity In all our dealings
Respect For our customers and each other.

Awards & Achievements

Excellence Award by the Central Board of Revenue

The Central Board of Revenue presented "Excellence Award" to the Bank of Punjab in
recognition of the contribution made by the bank towards Government exchequer.

3rd Kissan Time Awards

In recognition of Bank's contribution in development and growth of agricultural sector,

the Bank honoured with "Top Bank for Agriculture Loans" and "Best Bank Crop
Insurance" under 3rd Kissan Time Awards year 2006.

Best Corporate Report Award

Annual Report of the Bank for the year 2005 won 5th position for "The Best Corporate
Report Award" for the financial sector, adjudicated jointly by the Institute of Chartered
Accountants of Pakistan and the Institute of Cost and Management Accountants of
Pakistan.

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16th Bolan Excellence Award

The Bank was awarded Best Bank Award under 15th Bolan Excellence Awards
distributed in 2006.

Achievement Award

The Lahore Chamber of Commerce & Industry (LCCI) awarded the Bank "LCCI
Achievement Award" 2006.

Products

Deposit Products:
Current Accounts

The Accounts shall be opened upon submission of duly filled-in Bank’s prescribed
Account Opening Form properly introduced in the manner provided and on submitting
all such documents as may be revised by the Bank. The Bank reserves the right to
demand such relevant documents even after opening of account as deemed necessary.

The Accounts shall be opened with an initial/minimum deposit as stipulated by the Bank
from time to time unless specifically exempted.

The Accounts may be opened singly in one name or jointly in two or more names.

A distinctive number shall be allotted to every account and this number should be
quoted in all correspondence relating to the account and at the time of making a deposit
or withdrawal. The Bank reserves the right to change the Account Number or any part of

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it in order to meet its book keeping/administration requirement. However, intimation of
change in the account number shall be sent to the account holder.

Account for the recipient of Zakat or recipient of grants from Bait-ul-Mall, maybe
opened with an initial deposit of Rs.100/-

Deposit may be accepted from minors provided the account is opened and operated
through a guardian. The Account thus opened will continue to be operated upon by the
guardian even if the minor attains the age of majority. The necessary consent to this
effect will be obtained at the time of opening of the account. The orders of the court will,
however, are followed in case the guardian is appointed by the court.

All monies/instruments to be deposited in an account should be accompanied by pay-in-

slip showing the title and number of the account. The entry of transaction shall be
authenticated by putting Bank’s stamp under the joint signatures of two officers of the
Bank on the pay-in-slip and counterfoil thereof. However in case of branches where
teller system has been introduced, teller only shell authenticate the transactions up to
the prescribed limits.

Withdrawals are not allowed against postdated (payable on any future date) and stale
(06 months after issuance date) Cheques and against un-cleared funds.

Where any account is not conducted to the satisfaction of the Bank, the account may be
closed without any notice and the balance will be remitted to the depositor at the
address given by the Account Holder(s).

The Bank has the right to refuse to open an Account without assigning any reason.

For New Customer

All CD accounts which are not operated upon by the account holders for a period of one
year will be classified as dormant. After passing one year in the dormant status, that is,
no operation in the account for a continuous period of two years, the account shall be

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MBA 4th
classified as inoperative. This entails certain restrictions on the operation of such
accounts, for reactivation, the account holder must in person request for a change of
status and will produce original CNIC or Passport or Pakistan Origin Card (POC) or
National Identity Card for Overseas Pakistani (NICOP) with photo copy for Branch /
Bank attestation. After passing further 8 years in inoperative status,i.e., if a CD account
is not operated upon by a customer for a continues period of ten years, it will be
classified as unclaimed deposit account and will be surrendered to SBP as per the
provisions (section 31) of Banking Companies Ordinance 1962

For Existing Account Holders

The period of conversion of a normal CD account to dormant has been enhanced from
06 months to one year, since last opertaion in the account, with effect from January
2008.

The branches shall ensure completion of all the formalities required by State Bank of
Pakistan vide Prudential Regulation No.M-1with regard to KNOW YOUR CUSTOMER.
\

BOP Basic Banking Account

The minimum initial deposit will be Rs.1000.

No profit will be Payable.

No fee (service charges) for maintaining such accounts will be charged.

There will be no limit for maintain minimum balance. In the cases, there balance in
BBA’s remaining "NIL" for a continuous 6 month period, such accounts will be closed.

Account holder will be allowed a maximum of 2 deposit transactions and 2 chequing

withdrawals, free of charge either through cash/through clearing per month otherwise
service charges of a regular banking account shall be applicable for that month as per
Bank's Schedule of Charges.

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Unlimited free of charge ATM withdrawals from Bank's own ATM's will be allowed. In
case of withdrawals from BBA through the ATM Machine of other Banks, the Charges of
these Banks shall be applicable for such transactions.

Note

If any existing customer desire to get his regular banking account converted into Basic
Banking Account, he / she may kindly contact the branch where his / her account is
being maintained. The facility for conversion into BBA will be provided free of charge

BOP TIJARAT ACCOUNT (LCY) :

MINIMUM MONTHLY AVERAGE BALANCE

INCENTIVE
FROM RS. 50,000 OVER

Inter-city/within-city On-line
Rs.5/- flat
deposit/withdrawal

Issuance of ATM/Debit Card Free

Renewal of ATM/Debit Card Free

Issuance of Cheque Book Free – No limit

Issuance of Duplicate A/c Statement Free – No limit

Rental Charges for Lockers Free - Locker of your choice subject to

(small/medium) availability

Key deposit for lockers Free

Issuance of PO/DD/MT/TT Rs.5/- flat

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MBA 4th
 DD Cancellation Charges Free – No limit

Courier Charges Free- No limit

Free - on equal to thrice of last month’s average

Commission in Outward Bills for
balance and above this amount as per SOC
Collection charges
(commission @ 0.15%)

Cheque return charges for cheques

presented in clearing as collecting Free
banker.

Call Deposit Receipt Free

N.B 1) the rent free locker facility will be allowed on availability of locker and after
maintaining average balance for six months.
2) In order to further facilitate the managers in targeting customers, it will be at the
discretion of the manager to offer the incentive package from day one. However it will
be the responsibility of the branch to ensure that customer completes the criteria as per
above table otherwise recover the charges waived
3) The incentive package will be reviewed on the basis of deposit procured vis-à-vis
cost/benefit and it can be revised downward.

BOP FCY SUPREME CURRENT ACCOUNT:

Foreign Currency Accounts can be opened in four currencies namely US Dollar, UK

Pond Sterling, Yen and Euro at any of the authorized branch

INCENTIVE PACKAGE FOR BOP FCY SUPREME CURRENT A/Cs

MINIMUM BALANCE $ 10, 000 OR
INCENTIVE
EURO 8,000 OR U.K. POUND 7,000

Issuance of ATM/Debit Card for Pak Rs. A/c One Card

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 Renewal of ATM/Debit Card for Pak Rs. A/c Allowed

Issuance of Cheque Book One per month

Issuance of Duplicate A/c Statement 1 per month

01 Allowed with same title (at any

Lockers (small / medium) *
branch of Bop)

Outward Bills for Collection CD account in PKR, with same title

Free Cancellation of DD/PO/MT/TT/CDR in

CD account in PKR, with same title
PKR

No Cheque Return Charges - for cheques

CD account in PKR, with same title
presented in clearing as collecting banker

No key deposit for lockers For Free Locker, mentioned above

Free Issuance of DD/ PO/ MT/ TT/ CDR in

Rs. 5/- flat per transaction
PKR

On – Line Transactions from PKR account

Rs. 5/- flat per transaction
(Intercity / Within City – Deposit / Withdrawal)

N.B.

1. The rent free locker facility will be allowed on availability of locker and after
maintaining average balance for six months.

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 2. In order to further facilitate the managers in targeting customers, it will be at the
discretion of the manager to offer the incentive package from day one. However it will
be the responsibility of the branch to ensure that customer completes the criteria as per
above table otherwise recover the charges waived.

3. The incentive package will be reviewed on quarterly basis. The Bank reserves the
right to change, modify the package.

Profit Loss Sharing Term Accounts

BOP PEHLAY MUNAFA SCHEME:

PRODUCT

This is a Fixed Deposit product with free ATM/Debit Card. The tenure will be 3, 6, 12, 15
and 18 months.

WHO CAN INVEST

The product is available for all types of customers who are eligible to invest in term
deposit as per Bank’s criteria. The term account can be opened singly or jointly.
Benevolent/Charitable Funds, Trusts, Cooperative Societies, Clubs etc can also invest.

AMOUNT OF DEPOSIT
 Minimum deposit is Rs.50,000/-
 While No Maximum deposit limit

BOP PAHLAY MUNAFA DEPOSIT SCHEME (Profit in Advance)

The detail of profit rates are as follows

TERM PROVISIONAL * PROVISIONAL MULTIPLIER EFFECTIVE

PROFIT TO BE PAID PROFIT RATE P.A. FACTOR RATE OF
IN ADVANCE (WHT (ANNUALIZED RATE EXPECTED

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 OF EXPECTED
TO BE DEDUCTED) RETURN
RETURN)

03
Rs. 2,500 10.00 % 0.025 10.25 %
months

06
Rs. 5,000 10.00 % 0.050 10.53 %
months

12
Rs. 10,350 10.35 % 0.1035 11.54 %
months

15
Rs. 12,800 10.24 % 0.128 11.74 %
months

18
Rs. 14,000 9.333 % 0.140 10.85 %
months


 * This product is governed under PLS rule of Profit & Loss sharing system. The
rates mentioned are expected and the Bank reserves the right to review/revise the
profit rates half yearly and terms & conditions of profit and scheme
 The provisional profit will be paid in advance i.e. at the time of investment.
 Zakat will be deducted as per law, wherever applicable.
 With holding tax will be deducted as per law.

The above expected rates are effective from 08-06-2010 for all fresh deposit
procured/accounts opened under the BOP PahlayMunafa Scheme. These rates will not
be applicable to deposits already booked in these schemes till the time they are
matured.

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MBA 4th
PREMATURE ENCASHMENT:

The profit shall be paid on prevalent normal term deposit rates. Rules governing normal
PLS Term Deposit shall apply i.e. In case of pre-mature encashment, corresponding
rate applicable to the period of retention then declared by the Bank will be paid,
provided deposit is kept for a period not less than 7 days. The difference amount will be
recovered from the principal amount.

With-holding Tax deducted in advance and paid to Tax Authorities shall not be refunded
at the time of pre-mature encashment. However Advance Tax Deduction Certificate will
be issued to the customer for claiming refund from the Tax Authorities.

MISCELLANEOUS

The provisional profit will be paid in advance i.e. at the time of investment. The
provisional profit will be credited into customers PLS/CD account.

For further details, please contact your nearest Branch

CORPORATE PREMIER TERM ACCOUNT

His account has been introduced for corporate clients. This is a non operating/chequing
account. Minimum amount of investment is Rs.500 (M). The deduction of Zakat and
Withholding tax will be applicable as per law of the land.

Profit payable at maturity

GENERAL CORPORATE
ENTITIES

01 Month 5.00%

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03 Month 5.50%

06 Month 5.75%

01 Year 6.00%

05 Years &
6.50%
Above

MUNAFA HI MUNAFA TERM ACCOUNT - III

The product is available for all types of customers who are eligible to invest in term
deposit as per Bank's criteria. The term account can be opened singly or jointly.

PROFIT PAYMENT ON
*EXPECTED
MINIMUM AMOUNT MONTHLY BASIS (WITH
TERM PROFIT
OF DEPOSIT RS HOLDING TAX TO BE
RATES P.A.
DEDUCTED)
1 month 7.00 % 100,000/- Rs.583
3 months 8.75 % 100,000/- Rs.729
6 months 9.25 % 100,000/- Rs.771
1 year 11.40 % 100,000/- Rs.950
2 year 11.60 % 100,000/- Rs.967

• This product is governed under PLS rules i.e. the rates mentioned are provisional and
the Bank reserves the right to revise/revisit the profit rates under Profit & Loss sharing
system and terms & conditions of scheme.
• The above expected rates are effective from 26-04-2010 for all fresh deposit
procured/accounts opened under the Munafa-Hi-Munafa Scheme III. These rates will

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MBA 4th
 not be applicable to deposits already booked in these schemes till the time they are
matured.
* Please note the rates will be reviewed on monthly basis.

Main terms & conditions are as follows:

 Minimum deposit is RS.100,000/-
 No Maximum deposit limit
 The profit will be paid on monthly basis
 Withholding Tax and Zakat will be deducted as per law, wherever applicable
* All other terms & conditions circulated earlier will remain the same

BAI MISAAL TERM DEPOSIT ACCOUNT

The product is available for all types of customers who are eligible to invest in term
deposit as per Bank's criteria. The term account can be opened singly or jointly.

TOTAL AMOUNT TO BE
*EXPECTED MINIMUM PROFIT TO BE PAID ON
PAID ON MATURITY
TERM PROFIT AMOUNT OF MATURITY (WHT TO BE
(WHT TO BE
RATES P.A. DEPOSIT RS DEDUCTED)
DEDUCTED)
1 year 12.00 % 100,000/- Rs. 12,000 Rs. 112,000
2 year 12.25 % 100,000/- Rs. 24,500 Rs. 124,500

 This product is governed under PLS rules i.e. the rates mentioned are provisional
and the Bank reserves the right to revise/revisit the profit rates under Profit &
Loss sharing system and terms & conditions of scheme.
The above expected rates are effective from 26-04-2010 for all fresh deposit
procured/accounts opened under the BaiMisaal Term Deposit Scheme. These rates will
not be applicable to deposits already booked in these schemes till the time they are
matured.

 Please note the rates will be reviewed on monthly basis.

Main terms & conditions are as follows:

 Minimum deposit is RS.100,000/-

 No Maximum deposit limit
 The profit will be paid on maturity along with principal amount
 Withholding Tax and Zakat will be deducted as per law, wherever applicable

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Rules governing normal PLS Term Deposit shall apply i.e. In case of pre-mature
encashment, corresponding rate applicable to the period of retention then declared by
the Bank will be paid, provided deposit is kept for a period not less than 7 days. Please
note profit shall be paid on prevalent normal term deposit rates.
All other terms & conditions circulated earlier will remain the same.

Profit Loss Sharing Chequing Accounts

PLS SAVING ACCOUNT

The Accounts shall be opened upon submission of duly filled-in Bank’s prescribed
Account Opening Form properly introduced in the manner provided and on submitting
all such documents as may be revised by the Bank. The Bank reserves the right to
demand such relevant documents even after opening of account as deemed necessary

The Accounts shall be opened with an initial/minimum deposit as stipulated by the Bank
from time to time unless specifically exempted.\

The Accounts may be opened singly in one name or jointly in two or more names.

A distinctive number shall be allotted to every account and this number should be
quoted in all correspondence relating to the account and at the time of making a deposit
or withdrawal. The Bank reserves the right to change the Account Number or any part of
it in order to meet its book keeping/administration requirement. However, intimation of
change in the account number shall be sent to the account holder.

Account for the recipient of Zakat or recipient of grants from Bait-ul-Mall, maybe opened
with an initial deposit of Rs.100/-

Deposit may be accepted from minors provided the account is opened and operated
through a guardian. The Account thus opened will continue to be operated upon by the
guardian even if the minor attains the age of majority. The necessary consent to this

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MBA 4th
effect will be obtained at the time of opening of the account. The orders of the court will,
however, are followed in case the guardian is appointed by the court.

All monies/instruments to be deposited in an account should be accompanied by pay-in-

slip showing the title and number of the account. The entry of transaction shall be
authenticated by putting Bank’s stamp under the joint signatures of two officers of the
Bank on the pay-in-slip and counterfoil thereof. However in case of branches where
teller system has been introduced, teller only shell authenticate the transactions up to
the prescribed limits.

Withdrawals will not be allowed against postdated (payable on any future date) and
stale (06 months after issuance date) Cheques and against un-cleared funds.

Where any account is not conducted to the satisfaction of the Bank, the account may be
closed without any notice and the balance will be remitted to the depositor at the
address given by the Account Holder(s).

PLS Savings Accounts may also be opened by charitable institutions, for Provident
Funds and other funds of benevolent nature by Local Bodies, Autonomous
Corporations, Companies, Associations, Societies, Educational Institutions, Firms etc.
and in all other cases where such accounts are required to be opened under the orders
of Competent Court of Law

Not more than one PLS Savings Account may be opened at a branch in any one name
except in the name of a parent or guardian for more than one child or for keeping funds
of specified nature category by an entity, with the Bank’s prior approval.

Profit payable or Loss recoverable on PLS Saving Accounts to be credited or debited

will be determined by the Bank at its sole discretion on the basis of its net working
results at the end of each half-year within the time prescribed by SBP from the date of
the close of the half-yearly books of accounts of the Bank. The rates of profits may vary

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MBA 4th
from period to period via January to June/July to December each year. Calculation of
Profit on PLS Saving Accounts will be made for each calendar month on the lowest
credit balance of an account between the close of the 6th day and the last day of the
month. However, profit accrued even for Re. 1/- after deducting withholding tax will be
payable to all Account Holders. When an account is CLOSED before declaration of
profit rates, the accrued profit will be first credited in the account at the profit rates
previously declared by the Bank. However, no recovery or payment of profit as a result
of increase/decrease in the rate of profit will be affected upon such A/C holders after
announcement of half-yearly profit rates by the Bank.

The Bank has the right to refuse to open an Account without assigning any reason.

Withholding Tax at the rate notified by the Government of Pakistan from time to time will
be deducted out of profits payable to the Account Holders.

ZAKAT is leviable on the assets as described in the Zakat &Ushr Ordinance 1980 (as
amended from time to time) on balances which will fall within the definition of zakatable
assets as notified by the Government of Pakistan on valuation date each year, provided
Declaration (original/attested photocopy) for exemption from compulsory deduction of
zakat is filed on the prescribed proforma (CZ-50) in the prescribed manner one month
preceding the valuation date except in the case of newly opened accounts.

The branches shall ensure completion of all the formalities required by State Bank of
Pakistan vide Prudential Regulation No.M-1with regard to KNOW YOUR CUSTOMER,

SENIOR CITIZENS SAVING ACCOUNT

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MBA 4th
This is a saving bank product available for all senior citizens i.e. persons of 60 years
and above who are eligible to open a saving account as per our Bank’s criteria. The
account can be opened singly or preferably jointly (husband & wife) provided either of
them is of 60 years or above. This product is designed to attract procure
deposit/savings of senior citizens by offering attractive, innovative incentives and higher
rate of profit to senior citizens.

The Main Features are:

A customer can open only one BOP Senior Citizens Saving Account singly or jointly
regardless of the branch. In case it is found out that more than one account exists under
this category, the Bank reserves the right to recover & forfeit the profits paid or not to
give any profit. The account can be opened with a minimum initial deposit of Rs.10,
000/-. However in case average deposit during the month falls below Rs.10, 000/-,
account maintaining charges shall be levied as per Bank’s Schedule of Charges.

The profit slab is as follows:

Minimum Monthly Balance * Expected rate of profit

Rs. 0 up to 200,000/- Normal PLS SB rate

Rs.200,001 up to 400,000/- 5 7 % p.a.

Rs.400,001 up to 500,000/- 8 % p.a.

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MBA 4th
Over Rs. 500,000/- 5 % p.a.

*This product is governed under PLS rule of Profit & Loss sharing system. The rates
mentioned are expected and the Bank reserves the right to review/revise the profit rates
quarterly.

Maximum profit @ 8.0 % p.a. as per different slabs shall be paid on minimum monthly
deposit up toRs.500; 000/-Deposit can exceed Rs.500, 000/- however will be paid at
normal PLS-SB-Account rate on amount over and above Rs.500, 000.

The profit will be calculated on monthly basis based on the minimum monthly balance
maintained by the customer during that particular month.

The profit will be credited on monthly basis in the respective account. Profit once
disbursed will not be recovered in case of decrease in rate at the time of announcement
of Half Yearly profit rates. However in case of rise in profit rate the difference amount
will be paid.

Existing senior citizen account holders can also open account under this scheme.

Withholding tax will be deducted from the profit as per law in force Preferably PLS SB
joint a/c should be opened with special instructions of “Either or Survivor” which must be
jointly authenticated under full signatures of the Joint A/c holders.

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MBA 4th
Unlimited transaction (debit/credit) Free complimentary issuance of first ATM/Debit Card
Free complimentary issuance of first Cheque Book of 25 leaves 25 % reduction in rental
charges of small or medium locker subject to availability.

Priority banking especially in utility bills payment, counter service etc

The product carries all characteristics/conditions pertaining to PLS SB account i.e.

issuance of DD/TT/MT/PO etc as per Bank’s Schedule of Charges except payment of
profit which shall be paid on monthly basis on minimum monthly deposit as per
admissible rates shown against each minimum monthly balance.

GHARAYLOO SAVING ACCOUNT:

This is a saving bank product available for all females who are eligible to open a saving
account as per our Bank’s criteria. The account can be opened singly or jointly with
husband. This product is designed to attract procure deposit/savings of ladies
particularly housewives of expatriates & students.

The Main Features are:

A female can open only one BOP Gharayloo Saving Account singly or jointly regardless
of the branch. In case it is found out that more than one account exists under this
category, the Bank reserves the right to recover & forfeit the profits paid or not to give
any profit. The account can be opened with a minimum initial deposit of Rs.10, 000/-.

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MBA 4th
However in case average deposit during the month falls below Rs.10, 000/-, account
maintaining charges shall be levied as per Bank’s Schedule of Charges

The profit slab is as follows:

MINIMUM MONTHLY BALANCE * EXPECTED RATE OF PROFIT

Rs. 0 up to 10,000/- Normal PLS SB declared rate

Rs. 10,001 up to 250,000/- 7.25 % p.a.

Over Rs.250,000/- Normal PLS SB declared rate

*This product is governed under PLS rule of Profit & Loss sharing system. The rates
mentioned are expected and the Bank reserves the right to review/revise the profit rates
quarterly.

Maximum profit @ 7.25 % p.la.Shall be paid on minimum monthly deposit up to Rs.250,

000/- but over Rs.10, 000/-. Deposit can exceed Rs.250, 000/- however, profit will be
paid at normal PLS-SB-Account rate on balance over and above Rs.250, 000.

The profit will be calculated on monthly basis based on the minimum monthly balance
maintained by the customer during that particular month.

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MBA 4th
The profit will be credited on monthly basis in the respective account. Profit once
disbursed will not be recovered in case of decrease in rate at the time of announcement
of Half Yearly profit rates. However in case of rise in profit rate the difference amount
will be paid.

Withholding tax will be deducted from the profit as per law in force. Preferably PLS SB
joint a/c should be opened with special instructions of “Either or Survivor” which must be
jointly authenticated under full signatures of the Joint A/c holders.

Unlimited transaction (debit/credit) Free complimentary issuance of first ATM/Debit Card

25 % reduction in rental charges of small or medium locker subject to availability Priority
banking especially in utility bills payment, counter service etc.

The product carries all characteristics/conditions pertaining to PLS SB account i.e.

issuance of DD/TT/MT/PO etc as per Bank’s Schedule of Charges except payment of
profit which shall be paid on monthly basis on minimum monthly deposit as per
admissible rates shown against each minimum monthly balance.

ZIADA MUNAFA SAVING ACCOUNT

This is a saving bank product available for general public i.e. persons who are eligible to
open a saving account as per our Bank’s criteria. The account can be opened singly or
jointly. This product is designed to attract procure deposit/savings of general public
particularly salaried and small investors.

A customer can open only one BOP ZiadaMunafa Saving Account singly or jointly
regardless of the branch. In case it is found out that more than one account exists under
this category, the Bank reserves the right to recover & forfeit the profits paid or not to
give any profit. The account can be opened with a minimum initial deposit of Rs.10,
000/-. However in case average deposit during the month falls below Rs.10, 000/-,
account maintaining charges shall be levied as per Bank’s Schedule of Charges.

The profit slab is as follows:

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MBA 4th
MINIMUM MONTHLY BALANCE * EXPECTED RATE OF PROFIT
Rs. 0 up to 400,000/- Normal PLS SB rate
Rs.400,000 up to 500,000/- 7.5 % p.a.
Over Rs.500,000 Normal PLS SB rate

*This product is governed under PLS rule of Profit & Loss sharing system. The rates
mentioned are expected and the Bank reserves the right to review/revise the profit rates
quarterly.
Maximum profit @ 7.5 % p.a. as per different slabs shall be paid on minimum monthly
deposit up to Rs.500, 000/-Deposit can exceed Rs.500, 000/- however, profit will be
paid at normal PLS-SB-Account rate on amount over and above Rs.500, 000.

The profit will be calculated on monthly basis based on the minimum monthly balance
maintained by the customer during that particular month. The profit will be credited on
half yearly basis in the respective account as per rules of PLS SB.

Withholding tax will be deducted from the profit as per law in force. Preferably PLS SB
joint a/c should be opened with special instructions of “Either or Survivor” which must be
jointly authenticated under full signatures of the Joint A/c holders. Unlimited transaction
(debit/credit) free complimentary issuance of first ATM/Debit Card

The product carries all characteristics/conditions pertaining to PLS SB account including

payment of profit on half yearly basis i.e. issuance of DD/TT/MT/PO etc as per Bank’s
Schedule of Charges on minimum monthly deposit as per admissible rates shown
against each minimum monthly balance.

Loan Products

COMMERCIAL FINANCE:

 Against Pledge of Shares

 Against Government Securities

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MBA 4th
  Against Hypothecation of Stocks

Against Pledge of Shares

His facility is generally extended to companies or individuals on selective basis against

pledge of tangible securities such as Shares. Such financing is supportive to secondary
Capital Market concept. The facility is required to be adjusted periodically or within the
period as specified in the Sanction Advice/DAC. Given that Stock Market in Pakistan is
volatile, banks are required to refrain from extending loans to the market players who
are engaged in speculations for short term “Gains”, which quite often they fail to make,
consequently rendering the facility to non-performing ultimately.

POLICY

Advances against shares shall not be allowed to:

 Take exposure against the security of shares/TFCs issued by them.

 Provide unsecured credit to finance subscription towards floatation of share

capital and issue of TFCs.

 Take exposure against the non listed TFCs or the shares of companies not listed
on the Stock Exchange(s).

 Take exposure on any limited company against the shares/TFCs of that

company or its group companies.

 Take exposure against sponsor director’s shares (issued in their own name or in
the name of their family members) of banks/DFIs.
 Take exposure on any one person (whether singly or together with other family
members or companies owned and controlled by him or his family members)

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MBA 4th
 against shares of any commercial bank/DFI in excess of 5% of paid up capital of
the share issuing bank/DFI.

 Take exposure against the shares/TFCs of listed companies that are not
members of the Central Depository System.

 Take exposure against unsecured TFCs or non rated TFCs or TFCs rated below
‘BBB’ or equivalent.

 Unless otherwise adequately secured by other acceptable collaterals, Advance

to finance “Subscription”, towards floatation of “Share Capital” of public limited
company, is not allowed, under Credit Policy.

 Advances approved shall be within “Per Party Limit” (i.e, 30% of un-impaired
equity of Bank for fund based and non fund based subject to condition that the
maximum outstanding against fund based exposure doest not exceed 20% of
Bank’s equity) and supported by positive CIB/DFIs confidential reports.

 Loans exceeding Rs. 500,000/- (Total Accommodation) shall not be more than
10 times of Borrowers’ Equity i.e. Capital and Reserves minus losses and 04
times in case of fund based facility, as disclosed in their balance sheets.

 Financing shall be allowed against shares registered in the name of “Borrower”,

however in case the shares tendered for pledge are registered in the name of a
“Third Party”, the letter of lien shall be signed by the Third Party and not by the
Borrowers.

 Advances Department Head or RCAD shall conduct a monthly review of

financing against shares and exercise vigilance over: - Market Rates of pledged
shares. Their marketability. Dividend/Bonus declarations etc
Minimum Margin Requirements

1. Exposure against Shares of Listed Companies shall be subject to minimum margin of

30% of their current market value as per prevalent Prudential Regulations, which may at
the discretion of the Bank be set higher. However, in terms of the Prudential Regulations
the Bank shall monitor the margin on at least weekly basis and shall take appropriate

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MBA 4th
action for top-up and sell out, on the basis of approved Credit Policy and prior written
authority from the borrower.

AGAINST GOVERNMENT SECURITIES:

Government Securities include Defense Saving Certificates (DSCs), Special Saving

Certificates (SSCs), Regular Income Certificates (RICs), and Behbood Certificates, US
Dollar Bonds & NIT Units etc, issued by National Saving Centre Government of
Pakistan/National Investment Trust.

Large amount of funds representing “Provident Fund”, Benevolent Fund collections are
invested in the Government Securities, which are yielding better return compared to
placements with Commercial Banks. Banks also extend credit facilities against pledge
of “Deposit Certificates” or other instruments of value issued in the name of Individuals,
Joint Holders Public Bodies, and Firms, issued by various Government regulated
Investment/Saving Organizations, which at the moment are restricted to Maximum of
Rupees One Million and are subject to change.

1) POLICY

a. All Credit Financing against pledge of Securities require Credit Limit

approved by Credit Committee, even if 100% covered by cash or
collateral.

b. Documents complete in all respect duly vetted by Bank’s legal counsel

signature verified shall be obtained ensuring their validity in a “Court of
Law”. Signatures shall be verified in pencil on each document.

AGAINST HYPOTHECATION OF STOCKS:

Industrial organizations have to invest a large sum of money to build stocks of raw
material to up keep their manufacturing line. This is apt to create liquidity constraints in

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MBA 4th
 the Financial Balance Sheet of the customer. To manage such financial gaps/shortfall in
their cash flow they usually resort to borrowings from Banks against Hypothecation of
raw material/semi or finished goods held by them in their stocks. Banks in such cases
although do not have a physical custody of the goods, however have a legal
Charge/Lien established, thereon, providing a legal recourse to the Bank to take
custody of the stocks, in the event the borrowers default to repay the loan or fail to meet
their obligations, as agreed.

Criteria to merit this facility is provided in the Banks Credit Policy Manual, which is care
fully assessed by Risk Managers, while recommending a credit proposal to credit
committee. Some of the basic requirements are as follows which are included for
general understanding of the Processing Officers at Branches/CAD:- It shall be ensured
that the borrowers have absolute title to the goods and the same are not encumbered or
previously hypothecated to any other Bank.

Formal charge (First/Second/PariPassu) is created in the name of the Bank. Goods

offered are not perishable, or have short expiry period and do not warrant special
storing. Stocks offered for hypothecation are easily marketable and its price is not highly
fluctuating, otherwise the Bank retains higher margin. Stocks under hypothecation are
not restricted by SBP/Government as a policy to maintain market supply.

POLICY

Advances against hypothecation of goods is subject to the policies as applicable to

other loans, and as spelled out in the Credit Policy Manual with the exceptions given
below:-

 Stock reports, duly signed by borrowers, are received periodically at a frequency

as spelled out in the DAC/Credit Proposal etc.

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MBA 4th
 Limits are adjusted by CAD in the system in accordance with the Drawing Power
worked out each time a stock reports is received and value of stocks reassessed by
applying latest Pricing Index.
 Negative Variance between the net value of stocks (i.e, market value less
margin) and the outstanding advance shall be reported to the relationship/Risk Manger,
who shall advise the borrowers to cover the shortfall by additional stocks or adjust the
facility accordingly.

Cash Finance

This facility is generally provided against pledge of goods. Under this type of financial
accommodation the facility amount is disbursed in specially opened account for the
purpose. The pledged goods are released to the borrower against cash payment only. In
case the goods pledged are seasonal in nature, the customer would be required to
adjust the facility before the season ends. Rollover shall not be allowed.

POLICY:-

Basic criteria to qualify for advances against pledge of goods are as follows:-

Facility is disbursed in specially opened CF A/C for the purpose It shall be ensured that
Goods tendered for pledge are:-

 Free from credit restrictions imposed by State Bank of Pakistan Not perishable,
do not require special Storing arrangements / conditions and have short expiry period.
 Easily marketable and their price is not highly fluctuating.
 If so higher margins shall have to be approved & retained Where variation in
pricing is observed during periodic evaluation, the customer shall be advised to make
good the shortfall in the drawing power.
 Where variation in pricing is observed during periodic evaluation, the customer
shall be advised to make good the shortfall in the D.P.
 The borrowers hold an absolute un-encumbered title to the goods

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MBA 4th
 Consumer Finance

 Aasaish Loan
 Quick cash
 Car Loan
 House Loan
 Smart Cash Personal Loan

BOP Aasaish Loan

Particulars Bank’s Policy

About "BOP Aasaish Loan is personal loan facility for bank’s target market for
Scheme the purchase of Consumer durable goods for their personal use,
repayable on easy instalments"

Features

Target  Salaried Individuals (SI)

Market  Self Employed Professionals (SEP)
 Self Employed Businessmen (SEB)

Brands/ All renowned brands including PEL, LG, Sony, Samsung etc. for all
Products products like Refrigerator, TV, Microwave Oven, AC, Washing machine
etc.

Down
0%
Payment

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MBA 4th
 Tenure /
Mark-up Rate
Loan Tenure
(Reducing balance method)
Amount /
Mark-up
Rate 6 months 0%

9 Months 8% p.a

12 Months 11%p.a.

18 Months 15%p.a.

24 Months 18%p.a.

Charges Processing Charges

Details
= Rs. 500/- per case

E-CIB Charges

= Rs.125/- per case UptoRs. 100,000/-

Rs.200/- per case over Rs. 100,000/-

Documentation Charges

= Actual

Debt The monthly payments of all loans/lease/limits from all FIs/banks

Burden should not exceed 50% of Take Home Salary / Net Income.

Pre-
Payment No Penalty
Penalty

Late 3% on the amount of instalment per day for the days the amount
Payment remains overdue Max. Rs. 500/- + ChequeDishonouring Charges (as

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MBA 4th
 Penalty per schedule of charges of the bank)

Eligibility Eligibility Criteria for Govt. /Armed Forces/BOP Employees

Criteria  Age between 21 and 59 Years or retirement date; whichever is
earlier (59 Years at maturity of facility)
 Minimum Take Home Salary is Rs.7,000/-
 Permanent Employee with Minimum 01 Year of job Experience.
 Contractual Employees are also eligible but loan should be
adjusted before 03-months of the expiry of contract. Moreover,
departmental undertaking / one Personal Guarantee of equivalent or
senior grade shall be obtained for contractual employees (Financial
commitment of Guarantor should be established through E-CIB report
& Salary Slip or Employer Certificate or Bank Statement of salary
account showing monthly credits of salary amount).
 Maintaining Salary Account in any bank.
 Have valid CNIC
Eligibility Criteria for Private Employees
 Age between 24 and 59 Years or retirement date; whichever is
earlier (59 Years at maturity of facility)
 Minimum Take Home Salary is Rs. 10,000/-
 Permanent Pvt. Employee with Minimum 02 Years of job
Experience including 01 year with current employer.
 Maintaining Salary Account with any bank.
 Have valid CNIC
Eligibility Criteria for SEP/SEB
 Age between 25 and 57 Years or retirement date; whichever is
earlier (57 Years at maturity of facility)
 Minimum 02 Years in current business.
 Minimum Monthly Net Income is Rs.15,000/- (Established
through Tax Return or Financial Statements or Bank Statement).
 Have valid CNIC
 Residing or working in launching cities.

Documents For Govt. /Armed Forces/BOP Employees

Required  Copy of valid CNIC
 Latest Salary Slip (Employer Certificate, if salary slip is not

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MBA 4th
 provided by employer)
 Employer Certificate on organization’s letter head (as per BOP
specimen) –
 Bank Statement for last 06 months (where salary is being
transferred).
 Latest Copy of utility bills (Electricity & phone) (of present living
address).
For Private Employees
 Copy of valid CNIC
 Two Recent Photographs
 Latest Salary Slip (Employer Certificate, if salary slip is not
provided by employer)
 Employer Certificate on organization’s letter head (as per BOP
specimen)
 Bank Statement for last 06 months (where salary is being
transferred).
 Latest Copy of utility bills (Electricity & phone) (of present living
address)
 Income Tax Return/Wealth Statement OR Non-Tax Payees
Form, if applicant is a non-tax payer – In case of non-tax payee, one
personal guarantee is required. one Personal Guarantee of equivalent
or senior grade shall be obtained for contractual employees (Financial
commitment of Guarantor should be established through E-CIB report
& Salary Slip or Employer Certificate or Bank Statement of salary
account showing monthly credits of salary amount)
For self employed business professional
 Copy of valid CNIC
 Two Recent Photographs
 Bank Statement for last 06 months of Business Accounts
 Latest Copy of utility bills (Electricity & phone) of Residence
 Income Tax Return/Wealth Statement OR Non-Tax Payees
Form, if applicant is a non-tax payer. In case of non-tax payee, one
personal guarantee is required.
Business related documents.
 Latest copy of utility bills (Electricity & phone) of current
business address.

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MBA 4th
  Documentary evidence in business or in the profession for the
last 2 years.
 Proprietorship Certificate/Partnership deed
 Copy of Professional Degree (For Professionals)

Security  Post Dated Cheques

 Life Insurance of Borrower.
 Three (03) undated cheques of marked up amount (Principal +
Mark-up)
 Any additional guarantee, if required as per the contents of the
approval letter.

Quick Cash

Particulars Bank’s Policy

About “BOP Quick Cash is personal running finance facility for Salaried Class
Scheme for meeting their day to day personal needs”

Features

Target
The facility shall be available for Salaried Individuals (SI) only.
Market

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MBA 4th
 Finance
Minimum amount Maximum amount
Amount
Rs.50,000/- Rs.500,000/-

Tenure The facility is available for 1 year .However, It is renewable subject to

satisfactory Conduct of account, status/request of the borrower and
banks usual terms & condition.

Mark-up
Frequency of
Rate
Tenure Mark-up Rate Change of Mark-up
rate

Avg. 1 Year ask

Fixed for one year
1 side KIBOR + 900
and revised at the
year BPS with floor of
time of renewal.
19% p.a.

Charges Processing Charges

Details = Rs. 1,850/-

E-CIB Charges
= Rs.125/- per case UptoRs. 100,000/-
Rs.200/- per case over Rs. 100,000/-

Guarantor e-CIB Charges

= Rs.50/- per report

Documentation Charges
= Actual

Monthly 5% of outstanding amount at last date of the month OR Mark-up

Installment amount; whichever is higher (Payment of Monthly Instalment before
10th of every month)

Debt The monthly payments of all loans/lease/limits from all FIs/banks

Burden should not exceed 50% of Take Home Salary / Net Income.

Late
In case of delayed/non-payment, additional 2% mark-up shall be
Payment
charged. However, 03 grace days shall be allowed for payment
Penalty

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MBA 4th
 Eligibility  Age between 25 and 59 Years or retirement date; whichever is
Criteria earlier (59 Years at maturity of facility).
 Minimum Monthly Take Home Salary/Income is Rs. 15,000/-
 Permanent Employee with Minimum 03 Year of job Experience
including 01 year with current employer Contractual Employees are
also eligible but loan should be adjusted before 06 months of the
expiry of contract.
 Maintaining Salary Account in any bank.
 Have valid CNIC

Documents Copy of valid CNIC

Required  Latest Salary Slip (Employer Certificate, if salary slip is not
provided by employer)
 Employer Certificate on organization’s letter head (as per BOP
specimen)
 Bank Statement for last 06 months (where salary is being
transferred)
 Latest Copy of utility bills (Electricity & phone) (of present living
address)
 Two recent photographs
 Income Tax Return/Wealth Statement OR Non-Tax Payees
Form, if applicant is a non-tax payer – In case of non-tax payee

Security  Departmental Undertaking or Two Personal Guarantees of

employees of equivalent/senior grades to the client or where no
equivalent/senior grade officer is available then Personal Guarantee of
two officers of grade 17 or above shall be obtained. (Financial
commitment of Guarantor should be established through E-CIB report
& Salary Slip/Employer Certificate/Bank Statement)
In cases where the departments show intention to stand as guarantor,
an agreement shall be signed between the concerned
Department/Organization and Bank (through Regional Chief) whereby
the Organization shall undertake to deduct the amount due at its own
and then deposit the same into client’s account.
 THREE undated cheque for the full marked up amount i.e
(Principle + Mark-up of 01 year)
 Life Insurance of Borrower

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MBA 4th
 BOP Car Loan

Particulars Bank’s Policy

About
A lease facility for the purchase of vehicles for personal use.
Scheme

Features

Target  Salaried Individuals (SI)

Market  Self Employed Professionals (SEP)
 Self Employed Businessmen (SEB)

Finance
Minimum: Rs. 200,000/- Maximum: 5,000,000/-
Amount

Tenure Minimum: 01 Year Maximum: 05 Years

Mark up
Tenure Mark-up Rate
Rate

Avg. 1 Year ask side KIBOR + 400

1 year
bps with floor of 17% p.a.

Avg. 2 Years ask side KIBOR + 400

2 Years
bps with floor of 17% p.a.

3&5 Avg. 3 Years ask side KIBOR + 400

Years bps with floor of 17% p.a.

Minimum
Govt. / BOP Employees Pvt. Employees SEP/SEB
Equity

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MBA 4th
 10% 15% 20%

Down Equity + Processing Charges + First Year Insurance + First Monthly

Payment Instalment

Charges Processing Charges

Details
= Rs. 5,000/-

E-CIB Charges

= Rs.300/- per case

Guarantor e-CIB Charges

= Rs.50/- per report.

Documentation Charges

= Actual

Insurance Rate

= 4% from Insurance company on bank’ panel

Registration Charges

= Actual. Payable directly by the customer

Pre- Pre-payment penalty @5% on principal outstanding .However, If the

Payment customer repays in order to obtain finance for new vehicle no penalty
Penalty may be charged.

Debt The monthly payments of all loans/lease/limits from all FIs/banks

Burden should not exceed 50% of Take Home Salary / Net Income.

Late 5% on the amount of instalment Maximum Rs. 1000/- +

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MBA 4th
 Payment ChequeDishonouring Charges (as per schedule of charges of the bank)
Penalty

Eligibility ELIGIBILITY CRITERIA FOR GOVT. EMPLOYEES & BOP

Criteria EMPLOYEES
 Age between 25 and 59 Years or retirement date; whichever is
earlier (59 Years at maturity of facility)
 Minimum Take Home Salary is Rs. 10,000/-
 Permanent Govt. Employee with Minimum 03 Years of job
Experience. (01 Year for BOP Employees).
 Contractual Employees are also eligible but loan should be
adjusted before 06-months of the expiry of contract. Moreover,
departmental undertaking / one Personal Guarantee of Govt.
Employee of grade 17 & above shall be obtained for contractual
employees (Financial commitment of Guarantor should be established
through E-CIB report & Salary Slip/Employer Certificate/Bank
Statement of salary account showing monthly credits of salary
amount).
 Maintaining Salary Account in any bank.
 Have valid Driving License & CNIC
 Residing or working in launching cities.
ELIGIBILITY CRITERIA FOR PRIVATE EMPLOYEES
 Age between 25 and 59 Years or retirement date; whichever is
earlier (59 Years at maturity of facility)
 Minimum Take Home Salary is Rs. 15,000/-
 Permanent Pvt. Employee with Minimum 03 Years of job
Experience including 01 year with current employer.
 Maintaining Salary Account with any bank.
 Have valid Driving License & CNIC
 Residing or working in launching cities.
ELIGIBILITY CRITERIA FOR SEP/SEB
 Age between 25 and 57 Years or retirement date; whichever is
earlier (57 Years at maturity of facility)
 Minimum 03 Years in current business.
 Minimum Monthly Net Income is Rs. 20,000/- (Established

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MBA 4th
 through Tax Return or Income Estimation Report of outsourced
agencies or Bank Statement).
 Have valid Driving License & CNIC
 Residing or working in launching cities.

Documents FOR SALARIED PERSON

Required  Copy of valid CNIC
 Latest Salary Slip / Employer Certificate on organization’s letter
head (as per BOP specimen)
 Two Recent Photographs
 Bank Statement for last 6 months
 Latest Copy of utility bills (Electricity & phone)
 Income Tax Return/Wealth Statement OR Non-Tax Payees
Form, if applicant is a non-tax payer
FOR SELF EMPLOYED PROFESSIONAL /BUSINESSMEN
 Copy of CNIC
 Two Recent Photographs
 Bank Statement for last 01 Year of Business Accounts
 Latest Copy of utility bills (Electricity & phone) of Residence
 Income Tax Return/Wealth Statement OR Non-Tax Payees
Form, if applicant is a non-tax payer
BUSINESS RELATED DOCUMENTS.
 Latest copy of utility bills (Electricity & phone) of current
business address.
 Documentary evidence in business or in the profession for the
last 2 years.
 Proprietorship Certificate/Partnership deed
 Copy of Professional Degree (For Professionals)

Security  Car will be registered in the name of Bank as per lease

agreement.
 Comprehensive Insurance Policy (Insurance Certificate/policy
will be sent directly to the branch by the Insurance Company).
 Post Dated Cheques as per the repayment schedule.
 Three (03) undated cheques of marked up amount (Principal +
Mark-up) Any additional guarantee, if required as per the contents of

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MBA 4th
 the approval letter

Agriculture Credit

Lease Finance Facility for Purchase of Tractor under Green Tractor Scheme 2008-2009

In the wake of Chief Minister, Punjab's agenda for promotion of Agriculture Sector,
Government of Punjab has decided to provide 10000 Tractors to small farmers on
subsidized rates. A subsidy of RS: 200,000/- per tractor will be provided to the farmers
declared successful through computerized balloting. The scheme has been titled as
"Green Tractor Scheme 2008-09". In order to facilitate farmers and to grasp maximum
business, our Management has approved a special product titled as "LEASE FINANCE
FACILITY FOR PURCHASE OF TRACTOR UNDER GREEN TRACTOR SCHEME
2008-09" with following terms & conditions:

ELIGIBILITY:

All Farmers who have been declared successful through computerized balloting

The applicant should be a resident, owner/self cultivator of minimum 05 Acres of agri

land free from all encumbrances. Existing BOP borrowers having land under Bank's
charge are also eligible under this scheme.

The applicant should not be a defaulter of any Financial Institution.

PRICE OF TRACTOR:

The price of Green Tractor would be less by RS: 200,000/- from market price of tractor.
Subsidy of RS: 200,000/- will be provided by Govt. Of Punjab directly to Tractor
Manufacturers

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MBA 4th
MAKE OF TRACTOR:

Government of Punjab has approved M/s Millat Tractors (Pvt.) Ltd. and Al-Ghazi
Tractors Limited as Local Manufacturers of tractors for the scheme.

AMOUNT OF FINANCE:

The amount of finance will be equal to the price of locally manufactured tractor less
subsidy amount of RS: 200,000/- to be provided by the Government of Punjab.
However, maximum amount of facility will not exceed the ex - factory price of tractor.

EQUITY:

No Equity for Tractors having price up to RS: 500,000 10% equity of Subsidized Price
(actual price - subsidy amount) for all Tractors having price above RS: 500,000/-

SECURITY:

• Leased Asset (Tractor) itself (Tractor will be registered solely in the name of The Bank
of Punjab).

• Charge on Agriculture Land through Agri. Pass Book.

• Two written satisfactory market checking reports

MARGIN ON COLLATERAL SECURITY:

• 25% margin on three years OstBai of Agri Land as assessed by Revenue Officials.

• 50% margin on FSV of Agri Land as evaluated by Bank's approved surveyor (s).

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MBA 4th
INSURANCE:

Asset Insurance and Life assurance of the Borrower (assigned to BOP) as per Bank's
policy Insurance, Registration and evaluation charges (if any) etc shall be borne by the
farmer.

MARK-UP:

18% per Annum

VALIDITY:

05 Years from the date of disbursement.

REPAYMENT:

10 Equal Half Yearly Installments (Principal + Mark up).

Agriculture loans

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 Kisan dost scheme
Agriculture Schemes Markup
Scheme for Controlled Shed
Agriculture Finance Scheme
Model Dairy Farms

Kisan Dost Tractor Finance Scheme

PURPOSE:

Provision of financial facility to the farmers and non farmers (those who provide tractors
to farmers on rental basis for various tractor related operations), for purchase of Tractor
on Lease Finance Basis

ELIGIBILITY:

Resident Self Cultivator having Agriculture Land minimum 5 acres and maximum 50
acres. OR The persons who are related with the business of providing services for
tractor related farming practices to the farmers on rental Basis.

AMOUNT:

Maximum Rs. 750,000/-.

EQUITY:

10% to 20% of the cost of Tractor will be paid by the borrower on case to case basis.

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SECURITY:

1. Lease Tractor (to be registered in the name of Bank)

2. Charge on Agriculture Land through Agri. Pass Book.

3. One personal guarantee of reputable person. Two written satisfactory market

checking reports

MARGIN ON COLLATERAL SECURITY:

50% Margin on Agri land assessed by PBA’s Approved Surveyor. 25% Agri land as per
value in revenue record. The maximum amount of Finance will be allowed upto 75% of
the OastBai Value of land (OastBai is verified by Revenue Officer)

INSURANCE:

The Lessee will arrange comprehensive insurance of tractor. Life assurance of lessee
under the Bank’s charge

MARK-UP:

18% per Annum

REPAYMENT:

10 equal half yearly installments (within five years).

Agriculture Schemes Markup

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 Name of Scheme Type Rate of Markup

FARM SECTOR

Kissan Dost Agrimall Finance

Development 18% p.a
Scheme (LEASE FINANCE)

Kissan Dost Agrimall Finance

Development 18% p.a
Scheme (LEASE FINANCE)

Forced D/F Agri Loan against L/G &

Development 18% p.a
L/C etc.

Kissan Dost Mechanization Support

Development 18% p.a
Scheme

K.D. Aabiari Scheme Development 18% p.a

Kissan Dost Islah-e-Arazi Scheme Development 18% p.a

K.D Commercial Agro Services

Development 18% p.a
Scheme

K. D. Green House Finance Scheme

Development 18% p.a
(D/F)

K. D. Green House Finance Scheme

Development 18% p.a
(L/F)

K.D. Cold Storage Finance Scheme

Development 18% p.a
(L/F)

K.D. Cold Storage Finance Scheme

Development 18% p.a
(D/F)

K.D. Drip Irrigation System Finance

Development 18% p.a
(L/F)

Green Tractor Scheme Development 18% p.a

K.D. Farm Transport Scheme Development 18% p.a

Kissan Dost Commercial Tractor

Development 18% p.a
Lease Finance Scheme

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 Kissan Dost Agriculture Finance
Production 18% p.a
Scheme

K.D Agriculture Corporate Farming

Production 18% p.a
Finance Scheme

Kissan Dost Agrimall Finance 6 month KIBOR + 350 BPS

Production
Scheme (R/F) with floor rate of 12% P.A

K.D. Cold Storage Finance Scheme

Production 18% p.a
(R/F)

K. D. Agriculture Corporate Farming

Production 18% p.a
Finance Scheme

K. D. Green House Finance Scheme

Production 18% p.a
(R/F)

Scheme for Controlled Sheds

PURPOSE

The purpose of this scheme is to provide finance: For Construction of new Controlled
Poultry Sheds For remodeling of existing Sheds in to Controlled Sheds For
modernization/remodeling of existing sheds by replacing equipment machinery Import of
Machinery/Equipments related to Controlled Sheds

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ELIGIBILITY

A genuine farmer engaged in Agri related activities directly or indirectly having a suitable
land to erect Controlled Sheds Not a defaulter of any Financial Institution Having land
free from all encumbrances to be offered as security

NATURE & AMOUNT OF FACILITIES

MEDIUM TERM DEMAND FINANCE FACILITY (D/F)

Amount of Finance

(For construction of Controlled Sheds for Poultry Farming) 70% of the cost of
construction as assessed by PBA’s approved surveyor according to the proposed plan
of construction.

EQUITY:

30% of the cost of construction as assessed by PBA’s approved surveyor according to

the proposed plan of construction.

MEDIUM TERM LEASE FINANCE FACILITY (L/F)

AMOUNT OF FINANCE

(For purchase of machinery and equipments for modernization/remodeling of existing

poultry sheds (Feeding System, Nipple System, Cooling Pads, Fans, Heaters,
Generators and Weighbridge etc) 80% of purchase price of Equipment/Machinery

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 Letter of Credit Facility L/C

Facility for import of equipments/machinery to be installed in the Controlled Shed

 Import L/C (sight) Cash Margin 20%

 Retired through L/F of 5 years period
 Lease Key Money 20%

TENURE OF FACILITIES

Five Years in case of Demand Finance with grace period of ONE YEAR

Five Years in case of Lease Finance

TYPE OF SECURITY

1. Primary

Leased Assets in case of Lease Finance Facility (receipt will be issued in the name of
the Bank of Punjab)

2. Collateral

Charge on agriculture land through Agri Passbook OR Charge on urban immovable

property through equitable/registered mortgage the property should be cleared by the
banks approved legal counsel and will be assessed by the Banks and PBAs approved
surveyor. OR · Liquid security in shape of Bank’s Fixed Deposit Receipt/DSC/NSC or
Regular Income Certificates. · One personal guarantee of a reputable person. ACO
along with Regional Chief can waive this condition if they deem the borrower to be
credit worthy.

Margin on Security

IN CASE OF OAST BAI

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The maximum amount of Finance will be allowed up to 75% of the OastBai Value (duly
verified by Revenue Officer) of Agri Land

IN CASE OF MARKET VALUE OF AGRI/URBAN/COMMERCIAL LAND

The maximum amount of Finance will be allowed up to 50% of the Forced Sale Value of
the property as evaluated by PBA/Bank’s approved surveyor.

INSURANCE

Comprehensive Insurance (assigned to BOP) of the Leased Assets at borrower’s cost

Life assurance of the borrower (assigned to BOP)

Application of Markup Rate

For Demand Finance 18% per Annum

For Lease Finance 18% per Annum

DISBURSEMENT

In case of Medium Term Demand Finance Facility the loan will be disbursed in the
following manner: 40% for base structure, foundation and purchase of raw materials
40% for construction of Boundary Wall and other civil works 20% for finishing purposes
Each tranche will be released after proper verification by Executive Incharge Agriculture,
Branch Manager and ACO of the respective Branch. In case of Medium Term Lease
Finance Facility the loan will be disbursed in the following manner. Payment will be
made directly to the vendors/suppliers. The original cash receipts/invoices will be in the
name of the Bank of Punjab.

REPAYMENT

20 equal quarterly installments (Principal + Mark up) in case of Lease Finance 16 equal
quarterly installments (Principal + Mark up) in case of Demand Finance Facility. This

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scheme would be a part of our existing Kissan Dost Livestock Development Finance
Scheme.

Kisan Dost Agree Finance Schemes

PURPOSE:

Provision of financial facility to farmers for purchase of inputs (Seed, fertilizers,

pesticides, fungicides e.t.c)

ELIGIBILITY:

Resident Self Cultivator having Agriculture Land minimum 5 acres and maximum 50
acres. The applicant should not be defaulter of any other Bank and property should be
free from any encumbrances

AMOUNT:

Maximum Rs.500, 000/- according to per acre limit of the crop

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SECURITY:

Charge on Agriculture Land through Agri. Pass Book. OR Registered / Equitable

mortgage of urban property assessed by PBA’s approved surveyor and cleared by
Bank’s legal counsel OR Liquid security in the shape Bank’s Fixed Deposited
Receipts/DSC/NSC or Regular Income Certificates One Personal guarantee of
reputable person. ACOs along with Regional Chief can waive this condition if they deem
the borrower to be very credit worthy two written satisfactory market checking reports.

MARGIN ON COLLATERAL SECURITY:

50% Margin on Agri land or urban property assessed by Surveyor 25% margin on liquid
security or Agri land as per value in revenue record. The maximum amount of Finance
will be allowed up to 75% of the OastBai Value of land (OastBai is verified by Revenue
Officer)

Insurance:

Borrower will to arranged Crop Insurance and Life assurance by company on bank’s
panel.

MARK-UP:

18% per Annum

REPAYMENT:

Principal Once in a year & Markup on half yearly basis

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 RENEWAL:

Automatic renewal upon adjustment of entire principal with full markup within one year
Fresh documents will be obtained after three years.

Model Dairy Farms (PDDC)

PURPOSE:

Lease Finance Facility to purchase Dairy Farm Machinery for up gradation of Farm
infrastructure. Following items will be permissible.

 Farm cooling tanks.

 Fodder harvesters.
 Hay bailers.
 Animal cooling systems.
 Any other machinery/equipment advised by PDDC that is necessary for Farm
up-gradation.

ELIGIBILITY:

I) the applicant should be having his owned/leased Dairy Farm.

II) Recommended by PDDC.

Amount:

Bank will provide Lease Finance between 70% to 90% of the cost of assets ( on case to
case basis).

EQUITY:

From 10% to 30% of the cost of Equipment (on case to case basis)

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PRIMARY SECURITY:

Leased assets in the name of the Bank (Cash Memo/Invoice in the name of
Bank).Hypothecation of stocks (if any)

Collateral Security:

Charge on Agriculture Land through Agri. Pass Book/Registered and Equitable

Mortgage of Urban Immovable property/Lien on liquid security (Bank’s Term Deposit
Receipts/National Saving Certificated)

MARGIN ON IMMOVABLE SECURITY:

25% to 50% margin on FSV of immoveable security (Agri land /urban property). & 10%
margin on liquid security. The maximum amount of Finance will be allowed up to 75% of
the OastBai Value of land (OastBai is verified by Revenue Officer)

INSURANCE:

Comprehensive Insurance of the Leased assets at the borrower’s cost. Life assurance
of the borrower, assigned to BOP.

MARK-UP:

Average 6 month’s KIBOR + 250 bps to 495 bps with floor of 10% per annum to be paid
by PDDC according to the repayment schedule of the principal amount.

VALIDITY:

Up to five years in case of Lease Finance Facility

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REPAYMENT:

Equal quarterly installments (Principal only)

Kisan Dost Aabiari Scheme

PURPOSE:

Provision of financial facility to the farmers for installation of Tube well, turbines etc

ELIGIBILITY:

Resident Self Cultivator having Agriculture Land minimum 5 acres and maximum 50
acres.

AMOUNT:

Maximum Rs 500,000/-.

EQUITY:

20% of the cost of project will be paid by the borrower.

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SECURITY:

1. Lease Assets i.e. Engine, Tube well and other related implements (The vendor will
issue receipt in the name of Bank).

2. Charge on Agriculture Land through Agri. Pass Book.

3. One personal guarantee of reputable person acceptable to Bank.

4. Two written satisfactory market checking reports.

MARGIN ON COLLATERAL SECURITY:

50% Margin on Agri land assessed by Surveyor. 25% margin Agri land as per value in
revenue record. The maximum amount of Finance will be allowed upto 75% of the
OastBai Value of land (OastBai is verified by Revenue Officer)

INSURANCE:

The Lessee will arrange comprehensive insurance of implements/assets. Life

assurance of lessee under the Bank’s charge

REPAYMENT:

10 equal half yearly installments (within five years).

Live Stock Development Scheme

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PURPOSE:

Provision of financial facility for purchase of animals (Milk & meat production, cattle
farming, Poultry Farming and Fish farming) to the farmers and non farmers (those who
have their own live stock farm/fish farm for commercial purposes)

ELIGIBILITY:

Sufficient experience to handle Dairy Farm, Cattle Farm, Goat Farm, Poultry and Fish
Farming The persons who have their self owned Dairy Farms for production of milk on
commercial basis).The applicant should be having adequate arrangements to sell out
the products properly e.g. supply contract with milk processing company.

AMOUNT:

80% of cost of animals (Maximum facility can be granted upto 50% of forced sale value
of property).

SECURITY:

Leased Animals (receipt will be issued in the name of Bank).Charge on Agriculture Land
through Agri Pass Book OR Charge on urban immovable property through
equitable/registered mortgage. The property will be cleared by Bank's approved legal
counsel and will be assessed by Bank's and PBA's approved surveyor. Liquid security in
the shape Bank's Fixed Deposited Receipts/DSC/NSC or Regular Income Certificates

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MARGIN ON SECURITY:

50% margin on landed property (Agri/Urban). 25% margin in case of liquid security

INSURANCE:

The Lessee will arrange comprehensive insurance of Animals. In case of Poultry and
Fish farming Borrower will have to arrange comprehensive insurance of poultry and fish
stock himself form Bank's approved A rated company life assurance of lessee under the
Bank's charge.

MARK-UP:

18% per Annum

PERIOD:

5 Years

Trade Processing Centers

Foreign Trade operations are centralized at The Bank of Punjab and being handled at
10 TPC (Trade Processing Centre) designated branches out of 273 branches country
wide. These Trade Processing Centers are well equipped with modern communication
technology like SWIFT, E-Mail & Fax etc. and manned by staff having expertise in their
field of work. Our non TPC branches route the trade related transactions of their
customers through these designated TPCs. All our TPCs extend full co-operation to the

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importers / exporters and also provide valuable guidance to execute their transaction in
line with the laid down procedures as per State Bank & Government policies.

SERVICES

 Commercial Banking
 Corporate & Investment
 Cash Management Services
 Utility Bills
 Lockers

Commercial Banking

The Commercial Banking Group has been formed to cater the needs of small & medium
size customers for increasing Bank’s business significantly with clear focus,
repositioning of resources and active marketing to improve Bank’s profitability.
Commercial Banking will deal with customers having sales turnover and aggregate
credit exposure as per benchmarks prescribed in the SBP’s Prudential Regulations.

This Group’s emphasis will be to meet necessary business needs of customers which
are numerous as compared to CIB clients but their individual credit requirements are
relatively much smaller. In view of this peculiar nature of this business segment that
involves a higher turn over a much wider network is needed. The SME will concentrate
on rebuilding its set up which suits to its peculiar needs on all locations.

Corporate & Investment Banking

This group performs its function through its following two units:

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CORPORATE BANKING

The BOP Corporate Banking endeavors to market new clients and retain the existing
relationships and build market share by offering superior services, competitive pricing
and wide product range to valued corporate clients including Public Sector Entities
and Multi National Companies. BOP facilitates its customers for all sorts of their banking
needs including working capital, trade finance, BMR and project financing etc. BOP has
worked on some of the local markets’ largest and most complex transactions and
infrastructure projects.

The BOP Corporate Banking Group comprises of seasoned relationship

management team to meet the demanding service standards of large corporations. The
group delivers a full range of high quality advisory, financing and operational service
solutions tailored according to customers’ needs.

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 INVESTMENT BANKING

The investment Banking Group is entrusted with the prime responsibility of developing
and executing investment banking strategy to enhance and maximize shareholder
value and customer confidence. IBG specializes in providing innovative and unique
advice to its clients to assist them in meeting challenges in an ever-changing market.
The team of qualified professionals operates under a strict risk management
framework, following best practices within their fields and continuously striving for
excellence.

Investment Banking Unit offers full spectrum of services, which include TFCs,
Syndicated Finances, Structured Finances, Leveraged Buyouts, Project Finance,
Quasi-Equity Products, Independent Advice, Equity Placements, IPOs, Equity
Underwriting, Mergers, Corporate Restructuring, Acquisitions and other products. IBU
also works on and come up with providing Fund Management Facilities.

SERVICES:

BOP provides a wide range of services to meet requirements of its valuable corporate
clients. Few of the services are.

 Working Capital Finance including overdraft, FE Loans etc.

 Pre and Post shipment Export Financing(PKR and USD based)
 Import Financing(PKR and USD based)
 LMM Funding
 Cash Management Services
 Trade Services including Letter of Credit, Letter of Guarantee and Standby Letter
of Credit, etc.
Corporate Centres
 CIBG, Head Office, Lahore
 CBU Faisalabad
 CBU Karachi
 CBU Islamabad

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 Corporate Branches
 Main Branch Lahore
 M.M. Tower Branch Lahore
 Railway Road Branch Faisalabad
 Quaid-e-Azam Road Branch Multan
 Jinnah Avenue Branch Islamabad
 Main Branch Rawalpindi
 I. I. Chudrigar Road Branch Karach

Cash Management Service

Cash Management is a process of collections & payments on behalf of the Customers

using the Bank Network.The objective is to faciliate organizations with multiple
collection points in gathering Cash / Funds and making them available in the customer
operating Account. Similarly it facilitates disbursement of frequent and or Bulk payment
to multiple locations.

This should be accomplished with minimal supervision by the customer, supported by

an automated system to provide timely and requisite MIS / Reconciliation under agreed
Service Level

Utility Bills

Customers can pay their utility bills e.g. electricity, water gas, telephone, mobile, at any
of our 272 branches across Pakistan. For your convenience bills are collected on all

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 working days from 9:00 am to 5:00 pm (Monday to Friday) except lunch & prayer breaks
and from 9:00 am to 1:30 pm on Saturday.

You can also pay your bills by availing our drop box facility. Just drop your Cheque
along with bill at your branch and collect the receipt in the evening, avoid the hastle of
standing in queues and save your precious time.

BOP Locker

Discover peace of mind, enjoy personalized service and operate your locker in a friendly
and pleasant environment at The Bank of Punjab.
We are offering lockers facility at our following locations/branches:

Locker Size Annual Fee

Small Rs.1,200

Medium Rs.1,800

Large Rs.3,000

Extra Large Rs.6,500

 Key deposit equivalent to two years rent for respective locker is payable in
advance
 Locker holder need to have an account with us.
So put your valuables in a safe place and sleep well

ATM Locations

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 The Bank of Punjab has a network of 67 ATM branches across the Pakistan. To better
guide our customers, we have made the listing of all the branches. Click on the city and
get a look on all the ATM branches in that city.

Jhelum
Lahore Sargodha D.G Khan Kamoke
Islamabad Muridhke Layyah Peer
Rawalpindi Kasur Peshawar Mehal
Faisalabad Mianwali Abbottabad Ranjanpur
Multan Depalpur Karachi Muzaffarg
Gujranwala Lalamusa Bahawalnagar arh
Sialkot WahCantt Chiniot Vehari
Sheikhupura Sahiwal Attock Hyderaba
Gujrat Jauharabad Bhakkar d
Quetta

1Link Network

The Bank of Punjab Debit Card could be used in an 1-Link network as well as in M-Net
network. Customer areadviced to use 1-Link network. In Pakistan, the 1-Link ATM
facilities can be availed at any of the following banks and locations:

 AlBaraka Islamic Bank Limited

 Allied Bank Limited
 Askari Commercial Bank Limited
 Atlas Bank Limited
 Bank-al-Habib Limited
 Bank Alfalah Limited
 Bank Of Khyber
 Bank Of Punjab
 Bank Islami Pakistan Limited
 Barclays PLC
 Dawood Islamic Bank Pakistan Limited

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MBA 4th
 Dubai Islamic Bank Pakistan Limited
 Emirates Global Islamic Bank Limited
 Faysal Bank Limited
 Habib Bank Limited
 HabibMetropolatin Bank
 ArifHabib Bank
 Kashf Microfinance Bank
 JS Bank
 KASB Bank
 Mezzan Bank Limited
 My Bank (Bolan bank)
 National Bank of Pakistan
 NIB Bank Limited
 RBS (Royal Bank of Scotland)
 Samba Bank (Formally Crescent Commercial Bank Limited)
 Silk Bank Limited
 Soneri Bank Limited
 Standard Chartered Bank
 Tameer Microfinance Bank
 United Bank Limited

SUGGESTIONS

The suggestions for the findings from the study are follows:

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  Non financial incentive plans should also be implemented; it can improve the
Productivity level of the employees

 Organization should give importance to communication between employees and

gain
Co-ordination through it Skills of the employees should be appreciated.

 Better carrier development opportunities should be given to the employees for

their
Improvement

 If the centralized system of management is changed to a decentralized one, then

There would be active and committed participation of staff for the success of the
OrganizationSWOT Analysis

SWOT analysis is one of the most important steps in formulating strategy

using the organization mission as a context; managers assess internal
strengths distinctive competencies and weakness and external opportunities
and threats. The goal is to then develop good strategies and exploit
opportunities and strengths neutralize threats and avoid weaknesses.

SWOT analysis is an acronym that stands for strengths, weakness, opportunities, and threats
SWOT analysis is careful evaluation of an organization’s internal strengths and weakness as well
as its environment opportunities and threats.

“SWOT analysis is a situational which includes strengths, weaknesses,

opportunities and threats that affect organizational performance.”

In SWOT analysis the best strategies accomplish an organization’s mission by:

1. Exploiting an organizations opportunities and strength.

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MBA 4th
2. Neutralizing it threats.

3. Avoiding or correcting its weakness.

INTERNAL ASSESSMENT:

STRENGTH:

 The Bank of Punjab has lack of staff members than the required staff
level but its performance level is high as compared with its staff level.
 As a result of the compassionate and personalized services of the officers, the clients’
perception for BOP is very high. They have trust and feel themselves to be secure while
dealing with BOP.
 BOP has opened all its branches at commercial areas so that the
customers or clients face no problems in reaching to the bank
 The Bank of Punjab T.T.Singh branch is one of the busy branches in the
Distt.
 The Bank of Punjab is 4th largest branch in region according to
investment (more than 600 Million) as there are 46 branches in region.
 The BOP T.T.Sing Branch is the Ist largest branch in the District as there
are four branches in the Distt.
 One employee in the bank performs many duties.
 All staff members are well educated i.e. they hold masters degree e.g.
M.com, MBA etc
 There is also improvement in corporate loans and consumer loans.
 All staff members treat their account holders/general public with well
behavior.
 Punjab bank T.T.Singh Branch is business wise best branch.

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  Bank has higher level of deposits if we compare with other banks.
Deposit wise its number is 6th in Pakistani Industry.
 As it is business wise busy branch so its profit after tax has become
17% higher than previous year.
 In Punjab bank, there is computerized system so performance
automatically has been increased having better results.
 Compliance all risk mitigation policies and procedures. The bank’s
management realizes the necessity of existence of effective internal
controls to ensure smooth operations in current technical and swift
business environment.
 The management feels confident that all internal controls procedures
are adequate to effectively and efficiently meet the operational
requirements.
 Comprehensive risk management policies for credit, operational and
market risks are being implemented. Necessary steps have been taken
to ensure effective monitoring of risks and to observe compliance all
risk mitigation policies and procedures.
 The Bank officers of BOP are considered as one of the most able
professionals in the banking world (some belong to BCCI). However,
they have added some local flavor in accordance with their targeted
segmented. In my observation that they interact with their clients as if
they are their personal friends and discuss about their problems as
their own.
 Good security system, diversification of investments, foreign reserves.
 Not excellent but good facilities are given to employees.

WEAKNESS:

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  Level of bad debts is improving at higher level.
 There is yet no ATM machine in Punjab bank T.T.Singh Branch.
 There is also lack of workplace in the Bank.
 Lack of proper internal controls is one of the major weakness of BOP. It is also pointed
by the auditor in his review.
 BOP has formulized a lot of products and services for its customers, even more than other
commercial banks, but any advertisement on electronic media has not been seen.
 I observed during my internship that some of the employees were burdened with over
work. So I think that the work should be distributed according to their post and
capabilities.
 As each staff member performs many duties in one time so this
capture extra time which can slows down the performance.
 Due to lack of workplace, staff members as well as the general public
face disturbance in the bank.
 There is no corporate credit department in theT.T.Singh branch.
 Biased selection of employees.

EXTERNAL ASSESSMENT:

ENVIRONMENTAL OPPORTUNITY:

 The Bank of Punjab compete its competitors by encouraging

agriculture loans. So in such a way it plays an important role for
promotion of agriculture sector.
 All the opportunities of the 21st century are to be availed in the information technology.
Information technology is the future of this dynamic world. Therefore BOP should
emphasize much on IT, especially on E-Banking. Bank can design a universal account
like other foreign banks, to enhance online facilities.

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  Bank also encourages industrial sector. So in such a way most of
industrialists deal with Punjab Bank as a result Bank maintains large
size of deposits.
 However the year 2008 will prove to be another challenging year for
the bank with scattered opportunities and tough competition.
Diversification, innovation and mission driven approach are the key to
success.
 Management of the bank is committed to continue its efforts for
outstanding performance. Improvement in stakeholders’ value shall be
ensured through progressive but cautious business expansion with
strategic branch network extension and introduction of innovative
products in all areas of business.
 BOP has introduced a number of financial schemes including special ‘Deposit Accounts’.
These accounts have their unique features. During the last three years, BOP deposits have
been increasing @ 40%, which is a very healthy sign. Therefore, with the commencement
of new schemes there can even be a greater increase in its deposits.
 Great opportunity of starting Islamic banking system.

ENVIRONMENTAL THREAT:

 Currently The Bank of Punjab is facing major threat in Pakistan that is

private businessmen do not prefer the Bank of Punjab due to the
standard as compare to private bank.
 BOP is facing a strong competition by its competitors, Business of all
these Banks are growing at very high pace.
 Despite the difficult circumstances that confronted the banking sector in particular and
the country in general, BOP has been still highly profitable. But, the facts can’t be denied

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 and there might be an adverse impact of such situation. In recent Hameesh Khan
(Previous President Fraud) is an example.
 Low security, economic and political instability.

CONCLUSION

While making an analysis of The Bank of Punjab, as a financial institution, we

find that this institution came into existence in pursuance of Bank of Punjab
Act, 1989 passed in the legislative Assembly of Province of Punjab. In the
short span of about 15 years, it becomes the fifth largest bank in the county
with 272Branches net work all over the country. I have suggested some
recommendations in the light of ratios and SWOT analysis. BOP has negative
working capital in all the three years so it is essential to increase current
assets and reduce investment in fixed assets.

While having an opportunity to go for internship at the branch, I have

observed the following reservations:-

The Branch is housed in small a banking premises which does not suffice the
requirements of visiting clientele as well as corporate clients of the Bank. By
having a glance over the current business of the branch, the same should
immediately be shifted to some spacious building so that best banking
services can be offered to the bank customers. Moreover, though the branch
is automated yet required number of PCs etc has not been provided
resultantly, the staff has to wait their turn to accomplish their daily job.
Finally there is a immediate need for ATM Machine at present era.

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Reference and Sources Used

Web Sites.

www.bop.org..com

www.bop.org.pk

www.google.com

www.scribd.com

www.pba.com.pk

www.brecorder.com.pk‘Economic review of Pakistan’

http://en.wikipedia.org/wiki/Bank_of_punjab

www.bop.com/prducts/48

www.bop.com/products/35(https://www.bop.com.pk/index.php

https://www.bop.com.pk/Financial/AnnualAccounts.aspx

www.sbp.com.pk

www.bop.com.pk

http://www.antiessays.com/free-essays/74909.html

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http://www.scribd.com/doc/51440815/4/Business-Volume

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