Bank And Scope Of Banking Finance Essay

This chapter starts with a background to the chosen industry taking to a farther treatment of the study. Afterward, the intent & A ; the range of the survey is presented.

A bank is an establishment for the detention, loan or exchange of money for approving recognition, for reassigning financess by domestic and foreign measures of exchange. It is a grapevine through which currency moves into and out of circulation. As it is clear from the definition of banking, the chief activity or map of banking is borrowing and loaning of money with a border of addition. However, every bit far as the present twenty-four hours banking is concerned, there are a figure of different Bankss, set up under specific different aims, executing assorted maps. Chiefly all Bankss gather temporarily idle money for the intent of loaning to other and investing addition in the signifier of return, net incomes and dividends etc. nevertheless, due to the truth of resources of money and the diverseness in loaning and investing operations, bank has been place in assorted classs, such as commercial, salvaging, merchandiser, mortgage, consumer, investing and cardinal bank. In the developed societies, the Bankss do non hold to do many attempts in mobilising nest eggs, as it has become a 2nd wont with the people. The commercial Bankss are financing the short and long-run capital demands of the concern. The loans and price reductions of commercial Bankss include existent province mortgages and long term loans, which extend to as long a period as 10 old ages. These Bankss besides administer estates, acts as insurance agents and investment bankers, provide securities firm services and implement domestic every bit good as foreign economic policies of the authorities. Commercial Bankss in developing states have to do vigorous attempts of resource mobilisation at all degrees. However, with the transition of clip the commercial banking operations are under traveling singular qualitative alteration. In Pakistan for case, banking installations are being extended to the un-banked topographic points. Planned attempts are being made to heighten the supply of bank progresss to the new precedence sectors in consonant rhyme with the present twenty-four hours socio-economic demands. A particular strategy to invest commercial Bankss in the field of agricultural recognition was introduced in December 1972. The strategy provides for short and average term loans to husbandmans under a much-simplified process. State Bank ‘s steps aimed at increasing the flow of recognition to the little adult male in concern and industry every bit good as to lodging and non-traditional exports have besides yielded positive consequences. The big hazard to the commercial Bankss in the domain of agricultural finance and little loans are being covered to a sensible extent by the “ Credit Guarantee Scheme ” . Mandatory marks for little loan recognition to the agribusiness sector and for lodging have been prescribed and are being enforced. Corporate banking is besides being reorganized and reactivated on lines that are more feasible. Banks play a critical function in the economic development of a state. They accumulate the idle nest eggs of the people and do them available for investing. They besides create new demand sedimentations in the procedure of allowing loans and buying investing securities. They facilitate merchandise both inside and outside the state by accepting and discounting of measures of exchange. Banks besides increase the mobility of capital. They provide a assortment of installations for remitting a big sum of money from one topographic point to another by the transportation of a little faux pas of a paper.

In a state like Pakistan, which is still in the initial phases of economic development, a well-organized banking system is the demand of the twenty-four hours. There is acute deficit of capital in Pakistan. The Bankss have to play an of import function in advancing capital formation, in commanding guess in keeping a balance between demands and handiness and in directing physical resources in to coveted channels. In advanced states of the universe like America, Japan, Germany, the rate of capital formation ranges from 12 % to 25 % of their Gross National merchandise. Where as, in Pakistan, the rate of salvaging has varied from 5 % to 8 % merely. In order to speed up the rate of economic development the Government has been geting foreign capital. The Bankss by establishing a vigorous run in both the small towns and metropoliss can mobilise the idle nest eggs and can increase the rate of investing. The state therefore becomes independent of foreign capital, which

in fact has let us down on about all the important occurrences in the state. This lack of capital accretion is due to so many grounds like, lower per capita income, disparity of wealth, un-organized banking system, uneffective financial steps etc. One ground of this capital lack is the non-adoption of modern selling tools, such as market research, gross revenues organisation, gross revenues preparation, gross revenues direction, publicizing etc. for pulling sedimentations. Therefore, these are the new challenges for Bankss, which are to be achieved for the improvement of the economic system.

1.2 Purpose

As portion of the academic demand for finishing Master of Business Administration, The pupils are required to under travel for six hebdomads of internship with an organisation. The internship is to function the intent of introducing the pupils with the pattern of cognition of the subject of organisation ‘s disposal and system.

1.3 Scope of the Study

This survey can be helpful for private banking sectors in Pakistan to offer advanced merchandises and services to its clients. It can ease the leaders to accommodate the effectual leading behaviour that can ease them for accomplishing the personal every bit good as the organisation ‘s ends or aims. This survey can be utile for supplying the bank a competitory border in offering instant services to its patronage. This acquisition will besides help other economic systems and civilizations related to that of Pakistan.

1.4 Restriction of the Study

Something is better than nil. No affair how expeditiously a survey is conducted, it can non be perfect in all respects. The survey may non include wide accounts of facts and figures due to the nature of the survey. The restriction is the limitation on adverting every fact of the bank due to the job of secretiveness of the bank. In add-on, the handiness of required information was a job as all the paperss and files are kept purely under lock and cardinal due to their purely confidential nature. Third, the job of short clip period besides makes the analysis restricted as one can non decently understand and therefore analyse all the operations of a bank merely in a really short clip of six hebdomads.

Chapter 02

THE BANK OF PUNJAB

2 THE BANK OF PUNJAB ( BOP )

This chapter starts with a history of BOP with its vision & A ; mission. Discuss its organisational construction and operations with merchandise & A ; services. Later portion consist human resource direction of BOP.

2.1 Brief History

Established in 1989, in pursuit of The Bank of Punjab Act 1989 and was given the position of scheduled bank in 1994.

The Bank of Punjab is working every bit scheduled commercial bank with its web of 272 subdivisions at all major concern centres in state. The Bank provides all types of banking services such as Deposit in Local Currency, Client Deposit in Foreign Currency, Remittances, and Advances to Business, Trade, Industry and Agriculture. The Bank of Punjab has so entered a new epoch of scientific discipline to the state under experience and professional custodies of its direction. The Bank of Punjab plays a critical function in the national economic system through mobilisation of hitherto untapped local resources, advancing economy and supplying financess for investings. Attractive rates of net income on all types of sedimentations, gap of Foreign Currency Accounts and handling of Foreign Exchange concern such as Imports, Exports and Remittances, Financing, Trade and Industry for working capital demands and money market operations are some installations being provided by the Bank. The loaning policy of Bank is non lone cautiousnesss and constructive but besides based on rules of prudent loaning with maximal accent on security. As agribusiness is considered as anchor of our economic system the Bank of Punjab has introduced “ Kissan Dost Agriculture Finance Scheme ” to little husbandmans.

Lending under Islamic manner of finance, chief vehicles are morabaha, ifarah musharika to embrace demands of corporate, commercial and single clients.

2.2 Vision

The bank of punjab vision is To be a client focused bank with service excellence.

2.3 Mission

“ To transcend the outlooks of our stakeholders by leveraging our relationship with the Government of Punjab and presenting a complete scope of professional solutions with a focal point on coder driven merchandises & A ; services in the Agriculture and Middle Tier Markets through a motivated squad ”

SEHEDULED BANK STATUS: –

Consequent on programming, in conformity with the State Bank of Pakistan prescribed ordinances, the Bank had a diversify assets mix. It has started keeping minimal hard currency modesty demands with the State Bank of Pakistan since the day of the month of programming, and is bit by bit constructing up statuary liquidness modesty in the signifier of sanctioned Government Securities. The Year 1995 would, hence, be a twelvemonth of reorganising the Bank ‘s fiscal.

In add-on to this Bank has started working as a fully fledged scheduled commercial bank, besides covering in those maps antecedently non allowed to it e.g. foreign trade and exchange minutess, money market operations and other committee gaining concern.

The bank would, with broad-based subdivision web, earn net incomes from the concern sections thereby counterbalancing the decrease in pre-scheduling net income gaining assets.

2.5 Goals

In Bank of Punjab, while certain enterprises are approaching completion, new enterprises have been launched therefore picturing Bop uninterrupted desire to better the ways of making concern. The most outstanding being the information engineering enterprise which is aimed to better quality offerings, client service, and controls to run into the hereafter challenges.

2.6 Future Prospectus of the Organization

Bop is to the full cognizant of the developments taking topographic point in the Pakistan, every bit good as the alterations happening in the economic and societal status within the state. The bank is determined to run into new challenges by redefining its ends and scheme every bit good as by the accommodation of its operational policies.

The bank planning to establish major betterments, particularly in client service launch advanced merchandises to guarantee that the bank continues to play a dynamic function in the development of the state.

2.7 Branchs of Bank of Punjab

The Bank is to the full cognizant that the subdivision web has direct deductions on the services that it provides to its clients. We offer services through a web of 272 subdivisions and 272 province of the art ATMs.

Conventional braches

Abroad subdivisions

ATM machines

2.8 Organizational Structure

Bank of Punjab is managed by board of managers who are commanded by president. Afterward, CEO and COO controlled bank operations through group caputs and general troughs of different division. Bop organisational construction could be described by following chart.

Chairman

Board of Directors

Chief Executive Officer

Chief Operating Military officer

Group Heads

Chief Compliance Officer

Recognition

Relationship managment

Retail & A ; Middle Market, North

Retail & A ; Middle Market, South

Corporate & A ; Investment Banking

Consumer Finance

Audited account and Inspection

Technology & A ; Operationss

Chief Financial Officer

Operationss

Learning

GM ( HR & A ; QA )

GM ( Strategic Planning )

GM ( Legal & A ; Company Secretary )

GM ( Risk Management )

GM ( Information Technology )

Retail & A ; Middle Market, Central

GM ( Establishment & A ; Administration )

2.9 Human Resource Department in Bop

The function of Human Resources section is to help the concern lines and to supply conditions where the employees can accomplish their ultimate potency.

Recruitment

Recruitment is the procedure of pulling persons in a sufficient Numberss and appropriate makings for promoting them for occupations with an organisation. Applications with makings most related to occupation analysis. In Bop both internal and external enlisting are taking topographic point with a transition of clip although there are obviously good effects for bank from following a policy of make fulling vacancies within the bank as possible but there are built-in jobs and restrictions besides.

2.9.2 Job Analysis

A occupation analysis is a systematic geographic expedition of the activities within a occupation. It is a proficient process used to specify the responsibilities, duties, and answerabilities of a occupation. In Bop, occupation analysis method is utilizing an person ‘s interview method, a squad of occupation officeholders is choosing and extensively interviewed. The consequences are combined into a individual occupation analysis. This method is effectual for measuring occupations. The information amassed and written down from the occupation analysis procedure generates three results occupation description, specifications and rating.

2.10 Human Resource Management in Bop

There are following chief procedures:

2.10.1 Human Resource Planning

Resource planning parallels the programs for the concern as a whole. HRP means different things to different people ; general understanding exists on its ultimate objective-namely the most effectual usage of scarce endowment in the involvements of the worker and the organisation. HRP loosely act as an attempt to expect future concern and environmental demands on an organisation and to supply qualified people to carry through that concern and satisfy those demands.

Job Analysis plays a important function in pull offing the personal/human resources map. Job analysis is defined what is meant by a occupation. The smallest component of activity that employees are asked to execute is called a undertaking, word processing, filing, computations and replying the telephone are all undertakings. A group of logically connected activities are combined into a place. When different persons occupy different places but perform the same group of undertakings, this is called a occupation. Job analysis is the systematic procedure of depicting the intent of a occupation along with its constituent activities.

Besides included in this description are makings and demands of the employees. Job analysis defines that the specific activities that have to be performed, the duties and answerabilities of the employee, the expected consequences, mission or result of the activities performed.

2.10.1.1 Human Resource Forecasting

We define occupation analysis because occupation analysis is the foundation for calculating the demand for human resources every bit good as for programs for such activities as preparation, transportation or publicity. The intent of Human Resource prediction is to gauge the employees ‘ demands at some future clip period. Education is increasing twenty-four hours by twenty-four hours in developing states. Machines become old quickly due to innovation of new engineering. Culture, wonts and manners are ever altering after a period of clip. To carry through the necessities of their client, it is necessary to follow new techniques and engage new professionals that fulfill the demand of their clients. It is complete competitory country harmonizing to the production. Every worker wants their development harmonizing to engineering and harmonizing to money. So, it is really of import to calculate HR demand. Some employees are retired, enlargement of being work, publicities and put off are all the factors that assess the demand of HR demand.

2.10.1.2 Goal Setting and Strategic Planning

There are four wide types of internal moves. These moves correspond to publicities ( up ) , demotions ( down ) . Transportations and resettlements ( over ) and layoffs, retirements and surrenders ( out ) .

1. Promotion of employees normally assumes greater duty and authorization in Saturn for higher wage and benefits. Bop caput of section look into the status of work and exhaustively detect the whole public presentation of the employee harmonizing to the nature of the work. If Head of section wholly satisfy from the whole public presentation employee so he urge that employee for publicity and send on his petition for publicity to HR section. HR section gives the publicity signifier to the employee and employee fills this signifier and return to HR section after blessing of HR section. HR section cheque this employee papers file ( subject, duly, personality ) and attach whole record with the publicity signifier along with SEVP HR comments and forward to the VP for blessing. When procedure has been completed so publicity is to be given.

2. In demotion opposite procedure is carried out in the same manner.

3. Transportations and resettlements are carried out on the duplicate footing.

4. Layoffs, Retirement and Resignation: Under probation period employees can give the 24 hours resign but lasting employees give the one month notice and after completion of one month clearance procedure has been carried out. Employee gives the resign to the caput of section. Head of section O.K. this surrender and forward to HR section. SEVP HR approves this surrender and files it till completion of one month. All dues are paid on every Thursday without any hold. If company layoff or disregard to any employee the company pay one wage in progress to the lasting employee and employee leave the gate in 24 hours. After completion of 15 old ages in BOP employee can take the retirement with full benefits.

2.10.1.3 Program Implementation and Evaluation

Bop implements different employee oriented plans after rating through following ways:

A ) Performance Appraisal

HR section with the aid of Head of section look into the public presentation, subject, wellness, personality, corporation and candidly of employees and supply the necessary suggestion to the caput of section and their employees.

B ) Career Path Planning

If the organisation every bit good as the person do non hold a thorough apprehension of the demand of available occupation and how occupations at wining degrees relate to one another. HR section provides effectual calling way planning.

2.10.2 Employee Recruitment

Recruitment begins with a clear statement of aims based on the types of cognition, accomplishments, abilities and other features that an organisation demands. Recruitment is a signifier of concern competition. Just as corporation compete to develop, industry and market the best merchandise or service, so they must besides vie to place, pull and engage the most qualified people. Banks focuses specifically on the procedure of planning, managing and measuring enlisting attempts.

A ) Internal Resources

Campaigners are those people who want the occupations. Promotions, Transfer, Lay off, decease and enlargement factors came into being in the companies. Hundreds of people are performed their services in the company. When vacancies become vacant or new vacancies are generated due to enlargement and alteration of the company so these information range to those campaigners who desire the occupation or carry through the necessities of new/old vacancies. These campaigners should be their close relations, friends and some other peoples which have some sort of links with these people. Some employees have their name in the employee market due to their better public presentation. Management tries to engage those employees which perform their services in other Bankss at better benefits. Professionals have close nexus in every company and alter their occupation at the better benefits and Management besides desire to name the experience individuals.

B ) External Resources

Four most popular external enlistings are university relation, executive hunt houses, employment bureaus, enlisting advertisement. Some companies and institutes have information about the vacancies and supply labor/professional to the desire companies. On the footing of these information campaigners apply for the occupations and face the complete choice procedure.

2.10.3 Employment Selection, Orientation and Placement Process

Recruitment Begins by stipulating Human Resource demand ( Numberss, accomplishments mix, degrees, clip frame ) which is the typical consequence of occupation analysis and HR planning activities. It is necessary to stipulate the work to be done and the personal features necessary to make the work ( cognition, accomplishments, abilities and other features ) before one can stipulate the Numberss and types of people needed to make the work. The measure following enlisting is initial showing and it was done merely on the footing of physical features. But physical features entirely do non supply hints about a individuals potency for direction for any sort of work for that affair. What is needed, of class are samples of behaviour, either through trials and personal interviews or through the testimony of others about a campaigner. After choice procedure, the following measure is the debut to the Bank policies and benefits is an orientation may take up several hours or several hebdomads ; it may be formal, informal or some combination of the two. Placement occurs after orientation. Placement is the assignment of persons to occupations. In general, persons may be selected ab initio on the footing of their possible to win in general direction. After they have been observed and assessed during an intensive direction preparation plan, nevertheless the organisation is in a much better place to delegate them to specific occupations within broader occupation households, such as selling, production or gross revenues. The proficient expertness and the resources necessary to implement are required. Optimum Placement plans ( choice, orient, and so topographic point ) are found largely in the organisation. Once new employees are selected, oriented and placed, they can be trained to accomplish a competent degree of occupation public presentation.

Finally, public presentation assessment, one constituent of a public presentation direction system, provides feed back to employees sing their yesteryear and present occupation public presentation proficiency every bit good as a footing for bettering public presentation in the hereafter.

2.10.4 Training and Development

Training and development consist of planned advancement designed to better public presentation at the single group and or organisational degrees. Improved public presentation in tern implies that there have been mensurable alterations in cognition, accomplishments, attitudes and societal demands. Training is to better accomplishments related to occupation and development is to better employee ability and is long term oriented.

2.10.4.1 Training Need Assessment

The assessment serves as a foundation for the full preparation attempt. Both preparation and development depend on inputs from appraisal. The intent of appraisal is to specify what is the employee should larn in relation to want occupation behaviours. There are three degrees of analysis for finding the demands that preparation can carry through. Organization analysis focuses on placing where with in the organisation preparation is needed. Operationss analysis efforts to place the content of preparation. What an employee must make in order to execute aptly. Analysis determines how good each employee is executing the undertakings that make up his or her occupation. Finally, there is single analysis. At this degree, developing demands may be defined in footings of the undermentioned general thoughts ; the difference between desired public presentation and existent public presentation is the person ‘s preparation demand. Performance criterions identified in the operations analyses. A spread between existent and coveted public presentation may be filled by preparation. At the organisational degree, senior directors who set the organisation ‘s ends should analyse demands. At the operations degree, the directors ( or Team ) stipulate how the organisation ‘s ends are traveling to be achieved should analyse demands. At the single degree, the Managers and workers who do the work to accomplish those ends should analyse demands.

2.10.4.2 Training and Development Program for Employees

An efficient staff ensures the effectual bringing of services. Hence, it is of import for the development of employees to supply frequent preparation plans. These plans guarantee whether or non the employees are run intoing their occupation specifications. The basic map of such plans is:

To put emphasis on proviso of efficient service.

To review employees about their responsibilities.

To present them to new constructs.

To present a new service to be launched shortly.

To be able to accommodate with the altering environment.

Improve service quality.

Bop stands out owing to its high quality service. It has laid particular attending on the preparation of its employees to enrich their service quality to an even higher criterion. Another critical intent for such plans is for the employees to maintain abreast with the altering environment. Let us briefly expression at the salient of these preparation classs.

Types of Programs

Most of the preparation seminars/courses that are held at Bop are concerned in selling, intending thereby for those staff members who are working in the gross revenues & A ; selling section. These are called “ Management Training Programs ” . Very few such classs are held for those who do non cover straight with the clients.

A ) Frequency of the Program

Such classs are non held really often. However, their frequence is one time annually on the norm.

B ) Duration of the Program

The classs are held for non more than 2-3 yearss. However, in these twosome of yearss the attenders are given seminars and are in other activities for throughout the twenty-four hours.

C ) Selection Criteria

The choice of campaigners is through a well-structured system. The subdivision director of each subdivision forwards the names of a figure of staff members whom in his best of judgement are most eligible to go to these plans. These names are sent to the Head Office in Karachi for concluding blessing.

D ) Venue of the Program

Plans of such nature are normally held in Karachi, Lahore or Islamabad/Rawalpindi where selected members from all subdivisions gather.

Tocopherol ) Evaluation Methodology

Such courses/seminars are of no benefit until things are non implemented practically during work procedure. To guarantee whether an attender has gained any good out of such a plan there are two methods:

An after class feedback is taken from the members, where each member is asked what he/she has learnt/gained out of the class.

Another manner is that members are told to implement what they have learnt on their occupations. They are required to sporadically describe to the plan teacher or their immediate senior & A ; advise them whether or non they are using their new accomplishments or cognition on the occupation. In this instance, the immediate senior is the lone individual who is able to guarantee if the individual has really benefited or non.

2.10.5 Performance Management ( Puting Performance Standards and Expectations )

Bop has formed two groups, which are Investigation Group ( IG ) and Financial Control. These are responsible for mensurating public presentation of employees and subdivisions. Performance criterions translate occupation demands into degrees of acceptable or unacceptable employee behaviours. Performance criterions stipulate how well work is to be done. Such criterions may be quantitative ( e.g. clip, mistakes ) or qualitative ( e.g. quality or work, ability to analyse, say market research informations or a machine malfunction ) . More exactly, public presentation criterions define as ways of making the work in specified clip, quality of work that is performed. For illustration when a undertaking is given to the director so the processs or Techniques that director are used is known as public presentation criterions. The complete consequence is the outlooks. It is another thing that consequence fulfills the necessities of outlooks or non. When a occupation is given to the director so some criterions are supposed about their public presentation. This is known as public presentation criterion of those troughs. In the same manner, consequence is besides supposed this is known as outlook. The procedure which are carried out during his public presentation or making the work. The appraisal of this public presentation is known as public presentation assessment.

2.10.6 Employees Compensation and Benefits

An organisational wages system includes anything an employee values and desires that an employer contributes. To cover its employee cost and other disbursals, a bank must gain sufficient grosss through the gross revenues of its merchandises or services. More specifically, the wages system includes both fiscal and non fiscal wagess. Fiscal wagess include direct payment ( e.g. net payment ) plus indirect payments in the signifier of employee benefits. Non fiscal wagess include everything in a work environment that enhances a sense of ego regard and regard by others ( e.g. work environments are physically, socially and mentally healthy chance for preparation and personal development and effectual supervising. Although money is evidently a powerful tool to capture the heads and Black Marias of employee and to maximise their productiveness, yet the impact of non fiscal wagess should non be underestimated. Compensations are the benefits that authorities approves in their statute law. It is necessary for the company to pay the employees. For illustration, Social Security, Bonus, dual overtime, heath injection, Cafeteria, Cleanliness, Soft/cool H2O holidaies and defined working hours. The benefits are those which company provides their client to heighten production and make attractive force from the employee side and for the satisfaction of their clients.

Types of Compensation and Benefits

Government defines some regulations in their statute law, it is necessary for every company to obey these regulations and ordinances.

A ) Minimum rewards

Government define rupees- 8000/- for UN skilled labour. It is necessary for every company to pay minimal rewards rupees-8000.

B ) Social Security

All sums are 7 per centum of the wage paid by the company. This installation is besides available up to the rewards rupees 7000/- .

C ) Bonus

When Bank earns the net income in the fiscal twelvemonth, 5 % of his net incomes pay to the

D ) Overtime

Overall every Bank discourages the factor of overtime but in instance of utmost exigency, it is necessary for the company to pay the employee at the dual ratio of their wage.

E ) Health

It is necessary for the company to supply the free injection of hepatitis to all employees. These are all installations which are approved by the authorities and it is necessary for all companies to obey them.

F ) Other Benefits

Banks to successfully run their production provide the many installations like hard currency wages, periphery benefits and indirect benefits.

Bank at the terminal of fiscal twelvemonth assesses the public presentation and gives the hard currency award on the better public presentation. Banks provide the choice and bead installations to their employees, adjustment installations are provided to those employees which belong to for flung countries, neat and clean environment during their public presentation, Soft and cool imbibing H2O is provided. Cafeteria installation is provided on the minimal rate in contrast to the unfastened market. Visit installation to the foreign state is provided to the better performing artist. Employees ‘ engagement in determination devising ; effectual supervising and preparation chances are included in the non fiscal benefits.

2.7 Duties of HR Management

Boardss of Directors are held responsible by the stock holders for the direction of the bank. Because of the range of duty and item of direction involved, they normally delegated some of the duty. Generally, following the shareholders meeting and their election, the Directors:

Elect one of their members as Chairman of the Board and depute to him the duty of presiding at all meetings.

Elect one of their members as President and Chief Executive Officer of the bank

Elect corporate records of the bank.

Approve the compensation to be paid to the assorted officers and employees of the bank.

2.8 Schemes of HR Management

The direction, expectancy the anterior twelvemonth ‘s provisioning in line with the ongoing banking sector reforms, has already initiated major re-engineering and re-organization of the Bank. The Bank had embarked upon a two-prolonged scheme of following a nationalized plan to convey down cost, introduce advanced merchandises and offers specialized fiscal solutions and services to clients. Measures, which have already been implemented, are set out below:

With the aim of accomplishing decentalisation and cutting down disbursals, the decision-making has been reduced from four to two tyres, 68 controlling offices, consisting of 4 provincial, 18 circles and 46 zonary offices have been consolidated into 16 regional offices.

With a position to bettering efficiency and right sizing the BOP web, 66 subdivisions have been closed or merged.

The corporate units have been re-structured by cut downing the figure of divisions and redefine their functional duties, so as to supply valuable support to field operations.

Treasury operation has been re-organized on a modern engineering platform.

A centralised Particular Asset Management Division has been established for expeditious recover and colony of non- acting loans.

Expensive sedimentations have been reduced, bettering the involvement border.

The execution of the aforesaid stairss has been successful in cutting down costs and bettering efficiencies, ensuing in enhanced operational net incomes.

2.9 Job Advertisement

The occupation is advertised through both electronic and print media. But normally, print media that are newspapers are preferred. In newspapers, the occupation is advertised without adverting the name of the bank instead P.O Box is used to call off bank ‘s individuality. This is done for avoiding any political or any other force per unit area, influence or attack for choosing any peculiar person or group of people.

2.10 Categorization of Staff

The lasting staff of the Bank shall be classified under the undermentioned classs:

2.10.1 Class I

Senior Executive Vice President/Executive Vice President: ( Executive class )

Senior Vice President: ( senior grade-I )

Vice President: ( senior grade-II )

Adjunct Vice President ( senior grade-III )

Officer Grade-I

Officer Grade-II

Officer Grade-III

2.10.2 Category II

Head Casher/Stenographer

Draftsman/Estimator/Overseer

Senior Casher/Stenographer/Tele-printer/Key clout operator

Assistant, typist, casher, travel down Keeper, machine and telephone operator, building supervisor, tracer and other techniques.

Category III

Electrician/Ferro Printers

Driver/Sweeper

Bank guard, ticker keeper, courier, electrician, plumber, carpenter, nurseryman and such other staff

Sanity worker

The board of managers shall hold the power to find the categorization of any new stations that may be created, if they do non fall under any of the categorizations in class I. In the instance of other Categories the categorization of such stations will be determined by the president.

2.11 Human Resource Development in Bop

The Bank now plans to concentrate on farther strategic aims, as set out below:

Training and Development

Employees services, Safety, Health & A ; Welfare

Salary Administration

Industrial Relation

System of Communication

Negociating with Union ; and

Footings & A ; Conditions of Employment, etc. in Bop

2.11.1 Training and Development of Employee

For the preparation and development of freshly recruited every bit good as bing employees, Bank of Punjab Limited has five preparation academies, two in Lahore, two in Karachi, and one in Islamabad. At these preparation academies, talks, seminars etc, are conducted throughout the twelvemonth on different sectors and field operations, like general banking, foreign exchange, missive of credits, progresss etc. New techniques and methods are used to maintain the employees intelligent and abreast of the repaid and new alterations due to swerve competition and globalisation. There is a monthly class on computing machine orientation to fit employees for cyber competition and war. Both in house every bit good as nomadic classs are held and conducted for the preparation and development of the employees. In add-on to above, trainers ‘ preparation is arranged and held at Institute of banker ‘s. For these foreigners, experts from every field and celebrated professors, physicians etc. are invited to present and portion their practical experience to smooth, prepare latent stills of the functionaries of the Bank.

2.11.2 Employees Safety, Health & A ; Welfare

As Bop is non an industrial concern, so there is as such no extra-ordinary demand for safety and precautional steps which are taken by about all industrial concern and mills which working on machines and large workss etc. As respects Health and Welfare of workers, occupation security is at that place. Medical allowances and compensation for inadvertent loses are granted. At Officer ‘s degree: 2 basic wages or medical specialty ; Basic wage is or consultancy, hospitalization and research lab charges etc lower degree: Medicine as a portion of salary and consultancy outgo are given. All these installations are given on re-imbursement footing that is to acquire the money after showing the measures.

Besides this, following allowances are given for public assistance of employees

Recognized Provident Fund

Post Job Allowances like Pension, Gratuity, Life clip Medial Facility even at abroad

Benevolence Grant

Old-age pension Fund

Group Insurance Scheme etc.

In add-on to above, the undermentioned types of foliages may be granted to an employee to ease him when they are submitted to competent authorization and through proper channel.

Privilege Leave

On Full Pay

On Half Pay

Extraordinary Leave

Leave non due

Particular Leave

Pregnancy Leave

Disability Leave

Leave ex-Pakistan

Leave Preparatory To Retirement

Causal Leave

For the societal public assistance of employees loans on really easy installments and mark-ups are given for house, conveyance etc. excessively. For illustration, for house buildings 80 B.S. is given out of which 40 are free and staying are on 7 % involvement, which is really low as compared to others.

2.11.3 Salary Administration

The Bank distributes salary on monthly footing to its employees. The sum of salary varies harmonizing to the graduated table or class of an employee. In add-on to Basic wage, Increments, periphery benefits, hard currency monetary values are given and installation to see abroad in particular instances is awarded. Besides this, following allowances ( other than going allowances ) are given to employees establishing upon their classs and occupation nature.

Particular Duty Allowance

House Rent Allowance

Excess payment Allowance/Ceiling

Excess payment for Extra Work

Entertainment Expenses

Conveyance Allowance/Transportation Facility

Winter Allowance

Teaching Allowance

Flushing Banking Allowance

Unattractive Area Allowance

Education Allowance

Washing Allowance

Discomfort Allowance

Acting Allowance

Following is the list of assorted signifiers of Traveling Allowances

Daily Allowance, twenty-four hours, menu, milage etc.

Traveling Allowance Rates for employees in Category-I

Traveling Allowance Rates for employees in Category-II

Other Journeies

Traveling Allowance on first Appointment

Travel by shortest path

Journey/on con official responsibility

Traveling disbursals higher than entitlement

Certificate to attach to going measure

Transportation on petition

2.11.4 Industrial Relations

As Bop is a commercial bank, so it has strong industrial relationship with its fellow existences. The Bank ‘s cardinal strengths lie in its strong loaning capableness, every bit good as supplying a assortment of fiscal services, which has allowed Bop to diversify and heighten its sedimentation base and therefore good industrial relationship.

The bank has one of the most extended subdivision webs with deep incursion in both urban every bit good as rural Pakistan. This acts as a major competitory advantage over its more urban private sector rivals and foreign Bankss. The extended subdivision web has allowed these Bankss to tap into a moneymaking base of low cost and stable sedimentations.

There are figure of cardinal and celebrated houses to whom Bop has financed and lend loans. Bop is one of the largest semi authorities sector Bankss in Pakistan in footings of assets, sedimentations and progresss. Because of this, the Bank is in a place non to develop strong and healthy relationship but besides to keep prolonging them.

2.11.5 System of Communication

In Bop, upward and downward or go uping and falling or perpendicular communicating occurs for internal communicating. Top degree direction give direction to medium and lower degree direction by face-to-face meetings. Besides this, facsimiles, phones, electronic mails etc that is electronic media for handbills sing direction are besides used. The direction or organisational construction is split into different heads/divisions. These divisions are in a uninterrupted contact with each other to inform each other sing any issue, as they are dependent to a great extent on each other. Apart from electronic media, ordinary mails through TCS and other Swift messenger ‘s services are sent sing different issues and affairs. For communicating externally, a portion from direct face meeting, both print every bit good as electronic media is used. ATM ‘s and recognition cards are deriving Popularity in now a twenty-four hours fast and dynamic market and concern state of affairs.

2.11.6 Influence & A ; Role of Union

No 1 can deny the positive function of brotherhood. Union of any organisation truly works for the societal, economic public assistance of the workers of any house or organisation. It can truly contend for the employees and convert the direction to follow such system, which is necessary for the safety of guarding and protective shield against all malpractices of proprietors or direction. The brotherhood in Bop is established and is guided by Labor Act. Its function and influence varies from clip to clip. But Allied Bank ‘s brotherhood is strong plenty to play its function as it comprises of the employees of the Bank and the Bank is owned by the employees excessively. At the clip, when Government was ready to sell the portions of Bop to general populace, the Allied employees brotherhood was rather active at that clip and they purchased 51 % portions of the Bank. The brotherhood was rather consentaneous at the occasion. It was the existent representative of employees of the Bank. The bank ‘s president, at that clip, promoted and encouraged brotherhood activities to convert authorities to sell the Bank ‘s portion to its employees. Unfortunately, with the transition of clip, the brotherhood splited into sections due to different policies and involvements and is no more active and efficient as it was in the yesteryear.

2.11.7 Footings & A ; Conditions of Employment

Bop is governed by Service ( Staff ) Rules, 1981, so it has certain and specified footings and conditions for its employees which must to be fulfilled by them, so

Every employee shall corroborate to and stay by these regulations and shall detect, follow with and obey all orders and waies which may from clip to clip be given by any individual or individuals under whose supervision or control he may, for the clip being, be placed.

Every employee shall break up the bank candidly and dependably

And shall keep rigorous secretiveness sing the Bank ‘s personal businesss and the personal businesss of its components.

He shall utilize his extreme enterprises to advance the involvement of the Bank and shall demo courtesy and attending in all minutess which officers of Government, the Bank ‘s components and the Public.

No employee shall be member of any political party, take portion in, subscribe in assistance of, or help in any manner, any political motion in Pakistan or associating to the personal businesss of Pakistan.

No one shall show positions damaging to the political orientation of Pakistan

No employee shall go forth his station overnight, shall non remove from Bank without anterior permission from competent authorization.

No one shall do any personal representation direct to the Board of Director’s/Government/Government Agency.

No employees shall convey or try to convey political or other outside pressure/influence straight or indirectly to beet on the authorization.

No employee shall accept any gift from a component or a low-level employee of the Bank.

Except with the permission from competent, no employee incurs an unbarred debt to an extent transcending his emoluments of three months.

No guess in stocks, portions, giving of warrant without permission from competent authorization.

No employee shall get married a alien without permission of president except Muslim citizen of India.

No one shall open and keep an history with ay other bank is banker without old permission from competent authorization.

An employee guilty of conflicting any of the proviso of regulations mentioned will render himself apt to disciplinary action including dismissal from service.

2.11.8 Punishment

Without Prejudice to the other commissariats contained these regulations where an employee who commits breach of the regulations/other orders issued to him in connexion with his official work or who displays carelessness, inefficiency, or laziness or who cognizing does anything damaging to the involvement of the Bank or is guilty of any other act of misconduct or in subordination the competent authorization may enforce on him one or more of the undermentioned punishments:

Rebuke

Delay or arrest of increase or publicity

Forfeit of wage for any period of unauthorised absence from responsibility

Recovery from wage of the whole or portion of any monetary loss caused to

the bank by the employee

Degradation to a lower phase of wage in his class to a lower class

Compulsory retirement from service

Removal from service which does non unfit for future

Employment or calls upon an employee to vacate from service and dismissal which will affect lasting disqualification for future employment in the Bank.

2.12 SWOT ANALYSIS

This chapter presents the SWOT analysis of BOP where reader will happen strength, failings, chances and menaces faced by Bop in current country.

SWOT analysis is an acronym that stands for strengths, failing, chances, and menaces. SWOT analysis is careful rating of an organisation ‘s internal strengths and failing every bit good as its environment chances and menaces.

Exploiting an organisations chances and strength

Neutralizing it menaces

Avoiding or rectifying its failing

SWOT analysis is one of the most of import stairss in explicating scheme utilizing the organisation mission as a context ; directors assess internal strengths typical competences and failing and external chances and menaces. The end is to so develop good schemes and exploit chances and strengths neutralize menaces and avoid failings. Here I have applied this really utile technique to place the strengths, failings, chances and menaces of Federal Bureau of Prisons. chances and menaces of Bank of Punjab are as follows.

2.12.1 Strengths of Bank of Punjab

Bank of Punjab has certain strengths which are different from the other Banks.

High Motivation of Employees

Strength is the high motive of employees to their work because they know that what so of all time they do, it will be in their ain benefit. They know that the net income, which they will gain, will be distributed among all the employees. So they work with high motive and concentration.

Good salary bundle

Wages are really sensible, so the employees are non financially disturbed and they devote their egos to the full to their work.

Huge web of subdivisions

They have broad country web in all over the Pakistan, so that they cover a batch of part of hard currency minutess and do client satisfied.

Customer Oriented Bank

The Bank has really rigorous regulations and ordinances about the client ‘s ailments. The clients are treated as really particular individuals in the Bank.

Strong Financial Position

As we can see in the fiscal statements of the bank, the fiscal place of the organisation is really sound and its profitableness is increasing.

Highly Qualified Employees

The bank has extremely qualified and skilled work force and it has succeeded to pull the best banking professionals from across the state due to its turning gait and sound repute.

Conducive Environment

The direction of the bank is really much concerned with the development and betterment of the on the job environment. The bank has province of the art and intent built subdivisions where all the modern engineerings are provided to acquire the efficiency of the work force and the client satisfaction.

Govt. Support and Encouragement

The of Punjab fundamentally semi authorities and the type of their investing in Pakistan is a authorities investing, the govt. is to the full back uping the bank direction, to acquire the economic prosperity.

Fastest Turning Fiscal Institution

Due to its successful concern policies and the strong fiscal place the bank has achieved the repute of fastest turning fiscal establishment in the state. It has greatly increased the client ‘s assurance in the bank.

Huge Expansion Plan

Due to its strong fiscal place the bank has undergone a immense enlargement program to vie with the bing Bankss all over the state and with the transition of clip the subdivision web is spread outing at a really good gait.

Young and Energetic Workforce

As the bank is a newer one in the state, the bank has an advantage over its rivals because the bulk of its work force is immature and non really much over aged. Thus the bank is acquiring maximal end product from its immature and energetic work force by passing relatively less on their wages.

2.12.2 Failings of Bank of Punjab

Lack of Entertainment Facilities

No amusement installations are available in the Bank when client goes to the Bank and delay for a longer clip. These installations can be the newspaper, magazines, etc.

Ad Is Not So Attractive

Ad of Federal Bureau of Prisons is non such goods as of other Bankss.

Mercantile establishments are Unattractive

Mentality of the some Bop subdivisions is non attractive to the people.

All Branchs Are Not Fully Centralized

As comparison to other private commercial Bankss the limited subdivisions of Bop are computerized and centralized.

Inexperienced Workforce

As the bulk of the work force consists of immature professional, they lack in their experience. And sometimes deficiency of experience becomes a hurdle while functioning to the clients. It is the point where they feel trouble while viing the other bank, which have a really experient work force.

Over Work Load On Employees

It was observed in the subdivision that every bit compared to immense concern the bank is covering in, the no. of employees is lesser and therefore there is an increased work load on the employees. Due to this the efficiency of the employees is reduced.

Employees Are Not Very Much Motivated

As discussed before, the work load is high and the employees, particularly the recognition section, have to make tardily posings to finish their undertakings. On the other manus the bank has revised its salary increases policy to diminish the increase rate, as a consequence a reduced motive degree of employees is observed.

Lack Of Self Marketing Department

In today ‘s fast growth universe, media is an of import beginning for marketing your merchandises. Bop lacks a ego selling section for publicizing its new merchandise benefits to clients on a big graduated table.

2.12.3 Opportunities for Bank of Punjab

Financial Sector Reforms

The policies of the new authorities to elate the economic system and pursue fiscal sector reforms are expected to give positive consequences in the banking industry of the state. The Bop is really good praised to avail promising chances.

Attraction for Small Borrowers

As a consequence of the different stairss taken by the Government sing the improvement of the economic system, little borrowers are attracted to acquire the funding and get down little concerns. So, the Bop has an chance to pull the clients by giving them attractive strategies.

Remittances From Abroad

They have broad country web in all over the Pakistan, if Bop can do it possible the fast bringing of fund from abroad through online banking, it can cover the major market of Pakistan which still is capturing by ‘Hundi ‘ .

Quickly Turning Economy

At present the Pakistan ‘s Economy is turning on a really fast gait. The rapid growing of economic system has resulted in the addition in the growing rate of all economic sectors particularly in the banking sector which is turning at a fastest velocity than of all time and in future the growing is expected to increase even a higher rate.

Increased Interest Ratess

The SBP has revised the involvement policy and the involvement rates have been linked with the KIBOR rates. Due to which the Bankss involvement rate has been well increased which will greatly increase the Bankss ‘ profitableness.

Mega Undertakings Financing

As the addition in overall concern activity in the state, the investors are establishing assorted types of Mega Projects particularly in lodging and textile the bank has a great chance to finance these undertakings at really profitable term.

Huge Demand for Consumer Financing

The addition in per capita income and overall economic system has resulted into a great demand for the consumer funding particularly for place finance and auto funding and it is said that this tendency will increase more in future. The bank can gain a batch by concentrating on its consumer funding subdivisions.

Spending Practices of Mass

As the Pakistani ‘s are known for their excessive patterns, and to carry through their financess demands they do n’t waver from acquiring loans from Bankss. Therefore there is a really good range for the bank to run successful concern in such fortunes.

2.12.4 Menaces for Bank of Punjab

Political Influence

First menace is that of political influence.Boards of managers are of authorities. So that they can act upon on the determinations of the Bop.

The Continuous Downfall in the Economy

The biggest menace in the banking sector is the uninterrupted ruin of the state economic system since the last few old ages. If this ruin remains for more few old ages so it may be the great hinderance in accomplishing the Bank ‘s aims.

Uncertainty of Economy

Although the economic system is turning at a good gait, but there are many factors which consequences in the unsure place of the economic system. Such as political uncertainness, addition in poorness etc. As a consequence there are lasting menaces of future hazards and losingss for the bank.

High Rate of Inflation

The rising prices rate of the state has gone above the 14 % . This can ensue into an unfavourable state of affairs for the bank.

Tendency of Amalgamations

There is a tendency of amalgamations among the Bankss to go outstanding in the market and to acquire the maximal market portion. This tendency can ensue into the brotherhood of some taking Bankss which can give tough clip to the bank and it will go hard for the bank to vie with them.

Denationalization of Banks

Due to its denationalization policy, the govt. is privatising the province owned Bankss. The alteration in direction may ensue in the addition in the efficiency and productiveness of the Bankss. Thus it can go a menace for the bank.

Hazard of Defaults

As discussed earlier that there is a tendency of establishing mega undertakings in the state. And every one is involved in this tendency without taking any step for the prosperity of these undertakings. This can ensue into the failure of this undertaking which can do it hard for the Bankss to retrieve their financess from these defaulters.

.2.13 Competitive Strategy

Bop has this scheme that it ever gives precedence to its clients, as compared to other Bankss it has made it its motivation that its foremost precedence are its clients service. Harmonizing to their scheme it is the demand and demand of clients which should be given precedence and importance, so that if they will acquire what they truly want so decidedly they will be satisfied and prefer that bank over others. Another of import thing which differentiates them is that, Bop believes that doing your bing clients loyal is really of import, because it is truly the being of your already bing clients that attracts new people to come and seek, like a celebrated stating that money attracts money so in the same manner loyal clients attract new clients. To accomplish this motivation, Bop has made it its policy to give its clients full clip and attending, to present them with new policies, through their employees, aid line figure, booklets, magazines, and it is made the responsibility of its employees to cover with clients in such a mode that they feel really safe, that they have got all the safety of their wealth, full attending and involvement by the bankers.

2.15 Okara Branch

Bank of Punjab has been established in M.A Jinnah route. It is cardinal country of okara metropolis where other Bankss are located. It is one the most profitable bank in okara metropolis. It was incorporated on 16th September 2002.The bank is engaged in commercial banking and related services as defined in the Banking companies regulation, 1962, with the registered office at gulbrg11 Lahore. The fiscal place of bank is to portions of govt in a bank. Brief debut of Jhelum subdivision is as follows ;

Branch Name: Bank of Punjab M.a Jinnah route okara.

Branch Code 0018

Branch Manager: Mr.Hamid ali khan

Manager Operationss: Mr. Muhammad Faisal

Operations

( Clearing ) Contact Number: 0442-

2.14.1 Branch Organization Structure

OFFICER OPERATIONS

OFFICER OPERATIONS

Teller

CREDIT OFFICER

CONSUMER DEPARTMENT

Remittances

CASH DEPARTMENT

CREDIT DEPARTMENT

MANAGER OPERATIONS

HUB BRANCH MANAGER

Chapter 03

Learning AS A STUDENT INTERNSHIP

3 INTERNSHIP EXPERIENCE

This chapter presents my eight hebdomads experience tenor in Bop where I largely spend my clip in Operationss to research my cognition and apprehension and acquire the opportunity to hold a expression on execution of studious cognition in practically.

I have done internship at the Bank of Punjab Main Branch okara. I have worked in the HR sections of the bank. My internship was for the short span of clip i.e. two months. The undertakings performed in the bank are as under:

Name callings of Departments Where I Got Training

During my stay at Bank of Punab chief subdivision I worked in the undermentioned sections:

Customer Servicess

Account gap

Car finance

Operationss ( uncluttering )

Histories

Creditss

Their inside informations are as follows:

3.1 INTERNSHIP EXPERIENCE

3.1.1 Clearing section

It is one of the most of import sections of BOP and any of the Bank that non merely pays but besides collects checks from the clients.In Bop chief subdivision this section is run by Mr Asif, who performs her responsibilities with more concentration and devotedness as a minor error can do a large loss to the bank.All the work is performed through a “ glade house ”

3.1.1.1 Clearing House

A topographic point where all the reprensentives of all Bankss of a metropolis acquire together to settle the agreements of check grosss and payments. The advantages of glade house are manifold. It prevents the cost and waste involved in aggregation each and every check and claim which a banker holds against another across the counter with all the danger of loss in the theodolite incumbent upon it.

But now the undertaking is performed by NIFT. ( National Institutional Facilitation Technologies ) . NIFT is a joint venture between a pool of six major Bankss and private sector. It is responsible for the constitution and direction of automated clearinghouse installations in Pakistan. NIFT is proactively involved in the modernisation of payment systems in Pakistan. NIFT offers three types of services viz. ;

Local Clearing

Same Day Clearing

Intercity Clearing

There are two types of uncluttering i.e.

Inward Clearing

Outward Clearing

Many types of glade casts are used in the glade section. Each cast has its ain significance. Largely four glade casts are used. These are:

The Clearing Stamp

Stamp For Special Crossing

Stamp For Payee ‘s Account Credited

Stamp For Endorsement

NIFT delivers Local Inward Cheques early in the forenoon normally within half an hr after gap of bank. After having the mail, the following measure is to post them and debit the client ‘s history. These are really the checks of the same check book that was issued by our subdivision. After it the uncluttering procedure starts.

The procedure in which militias or financess are transferred among Bankss to settle the histories of checks written on one history and deposited into another is called uncluttering procedure. Cheque glade is the bosom and sole of day-to-day banking activity and the concluding measure in the usage of chequeable sedimentations as the medium of exchange for carry oning minutess in the economic system.

NIFT besides delivers local every bit good as intercity checks for uncluttering procedure. The above mentioned same procedure is repeated after having NIFT inward intercity checks. After posting these checks, Signature Verified cast is used to verify the client ‘s signature.

3.1.1.2 Inward Return

If all formal demand of the instruments ( checks, demand bill of exchange etc. ) are fulfilled so bank debit the client history in instance of inward glade but if anything is losing or non harmonizing to