HAILEY COLLEGE OF BANKING & FINANCE

University of the Punjab (Lahore)

INTERNSHIP REPORT ON
Punjab provincial cooperative bank

Report has been submitted by

Name
Maha Shafaq
Roll No
MI18MBA31

SESSION
2018-2022

Table of Contents
The INTERNSHIP REPORT FORMAT

In the start before executive summary include following pages:

 Front Page: Blank

 Title Page: Name of Company, Name, Roll No, Department Name,

 Paste your experience certificate and visiting card of an organization manager.

 Declaration

 Acknowledgement

 Dedication

 Table of content with page nos

The report should contain following chapters

Executive Summary

INTRODUCTION

History

The Role of organization in Economy

Contact Us

Business Philosophy

Vision Statement

Mission Statement

Corporate Objectives

Market Standing

MANAGEMNT SYSTEM

Organizational Structure
Management Hierarchy

Company Profile

Management Responsibilities

Policy Formation Process

Process Guide

MARKETING MIX

Product

Promotion

Place

Price

SWOT ANALYSIS

Situation Analysis

Competitors Analysis

FINANCIAL STATEMENT ANALYSIS

Horizontal Analysis

Ratio Analysis

TRAINING PROGRAM

Methodology

Departmental Detail

Training Program

PROBLEMS & SUGESSTIONS

CONCLUSION
 Dedication
I dedicate this report to my beloved Parents and Respected Teachers because
whatever I am today is all due to their prayers and support. Especially I would like to
dedicate this report to my respected Teachers and Hailey College of Banking and Finance. I
also would like to dedicate this project to my colleagues for their support and prayers.
Executive Summary
This internship report is about the prone and cons of my internship period that I spent
in the biggest agricultural bank of Pakistan “Punjab Provincial cooperative Bank Limited”.

The basic goal of this report is to provide information about the company about the
Organizational background of the company, History, Role of Organization in the economy,
Business Philosophies, Vision Statement, Mission statement, core values, top management of
PPCBL, Corporate Objectives and Marketing standings. rules and regulations implemented in
PPCBL, Policy Formation Process, Process Guide, Working under the Business Manager the
branch, work which I had performed, internal and external learning during the internship,
finding and my humble recommendations.

This Report begins with brief introduction of the Organization PPCBL is also provide
information of agricultural loans which describe the whole history of development of the
bank in Pakistan Specially in Punjab. There after it introduce the Punjab Provincial
cooperative Bank Limited how it forms and from how long it works as monopolistic
organization then how its competitors develop and make the environment into pure
competition. Then it discusses PPCBL company profile and also tells about its division of
shares among Government and General Public.

After the introduction phase of the company the history of this Organization is
defined how it developed from different phases and become the leading organization in
agricultural loan providing industry of Punjab. The strategic statements of the company have
been given which include the vision statement, mission statement and core values. These
statements provide the reader essential information about the future strategic scheduled of the
company.

Then next part of the internship report is related to marketing mix of the Organization which
describe about 4Ps of Marketing including Price, Product, Placement and Promotion.
Right after that there is Strength weakness opportunity and threat analyses also including its
two perspectives Situation Analysis and Competitors Analysis.

In next phase I have described about training ways of the organization their
methodology of training and departments for training.

The next phase of the report is related to my positive and negative learning from the
internship. This has been provided separately as positive and negative points. These points
are my very personal opinions generated after spending 6 weeks in the organization and may
vary for others.

Next part in which the subsequent section is related to the skills that I have gained and
utilized in order to perform my tasks and duties in a professional manner have been
mentioned.

The internship has enabled me to not only gain new skills but also provided me a practical
scenario to improve my current skills.

Then I have mentioned the challenges faced by me in the internship. Some of these
challenges were related to the work and others were in general. I was able to muddle through
with the help of my senior colleagues in an effective manner.

The next part of the internship report provides to information about the influence that
the internship has created on my future plans. The report ends with the recommendations and
conclusion section.
Chapter No: 1
Introduction
1.1: Introduction of banking sector
Importance of banking sectors:
Banking is one of the most susceptible businesses all over the world. Banks play very vital
role in the economy of a country and Pakistan is no immunity. Banks are custodian to the
assets of the general ample. The banking sector plays a significant role in a contemporary
world of money and economy. It manipulates and facilitates many different but incorporated
economic activities like resources recruitment, poverty removal, production and distribution
of public finance.

The major changes that have occurred in the banking sector during the last decade or
so can be summarized as follows:

 The banks that were hampered with the non-performing and defaulted loans have
cleared up their balance sheets in an open transparent, across-the-board manner.
Contrary to the popular myth the main beneficiaries of the write-offs of the old
outstanding and unrecoverable loans have been from almost 25 percent to 6.7 percent
by Dec. 2005. Small individual borrowers the ratio of non-performing loans of the
Commercial Banks to total advances has declined.
  The quality of new assets has improved as stringent measures are taken to appraise
new loans, and assure the underlying securities. Online Credit Information Bureau
reports provide updated information to the banks about the credit history and track
record of the borrowers. Loan approvals on political considerations have become
passé. Non-performing loans account for less than 3 percent of all new loans
disbursed since 1997.

 80 percent of the banking assets are held by the private sector banks and the
privatization of nationalized commercial banks has brought about a culture of
professionalism and service orientation in place of bureaucracy and apathy.

 The banks that were losing money due to inefficiencies, waste and limited product
range have become highly profitable business. These profits are, however, being used
to strengthen the capital base of the banks rather than paying out to the shareholders.
The minimum capital requirements have been raised from Rs. 500 million to Rs. 6
billion over an extended period in a phased manner. The consolidation of the banking
sector into fewer but stronger banks will lead to better management of risk.

 Banking Technology that was almost non-existent in Pakistan until a few years ago is
revolutionizing the customer services and access on-line banking, Internet banking,
ATMs, mobile phone banking and other modes of delivery have made it possible to
provide convenience to the customers while reducing the transaction costs to the
banks. Credit Cards, Debit Cards, Smart Cards etc. are a thriving and expanding
business in Pakistan. Once the RTGS is put in place the payment system in Pakistan.
Would enter a new phase of modernization.

 The foreign exchange market that was highly regulated through a system of direct
exchange controls over suppliers and users of foreign exchange has been liberalized
and all purchases and sales take place through an active and vibrant inter-bank
exchange market. All restrictions have been removed with full current account
convertibility and partial capital account convertibility. Foreign investors can now
bring in and take back their capital, remit profits, dividends and fees without any prior
removal and directly through their banks. Similarly, foreign portfolio investors can
also enter and exit the market at their own discretion.

Banking sectors in Pakistan

At the time of independence, the areas which now constitute Pakistan were producing only
food grains and agricultural raw material for Indo-Pakistan subcontinent. There were
practically no industries, and whatever raw material was produced was being exported from
Pakistan. However, commercial banking facilities were provided fairly well here. There were
487 offices of scheduled banks in the territories now constituting Pakistan
For studying the growth of this sector we can divide it into three stages, which are as
follows

Pre-Nationalization

Nationalization

Post Nationalization

 Pre-Nationalization

In the formative years of development of banking in Pakistan, governments intervened in the

banking system in three ways. First, a central bank i.e. the State Bank of Pakistan was
established and given a multiplicity of functions: regulating monetary and credit system,
fostering economic growth, undertaking money market operations, and supporting the
development of the capital market. Second, low cost financing was made available both
through the commercial banks. Third the increase in the number of branches allowed a
profound increase in bank credit, based on the increase in commercial bank deposits. But
these steps had some negative implications also. First the government policy supported
lending to specific industrial groups. Second considerable proportion of the bank investments
was directed towards government debt securities. Also high premium on liquidity made the
banks frequently reverting to SBP for additional credit.

 Nationalization

During nationalization the system of credit ceiling, quotas, and control affected the
performance of Nationalized Commercial Banks. A substantial part of their investment was
maintained in low yield government securities, given interest rate ceiling, banks controlled
deposit rates, thus leading to a negative real interest rate. These trends affected the ability of
financial system to generate resources for economic development. Negative real interest rates
encouraged disintermediation from the formal to informal financial sector, where nominal
rates of return were sustainability high. By 1990, the financial performance of the
Nationalized Commercial Banks had declined sustainability.

 Post-Nationalization

From 1991, a liberalization policy introduced by government, involving disinvestments of

state-owned commercial banks and deregulation of financial and monetary controls, had far
reaching effects on banking system. The changing financial structure was accompanied by
reforms which had an impact on the inter-linkage between financial and money markets.

These advancements included:

 Introduction of a competitive auction market for government debt.
 An across-the-board increase in yields on government debt.
 An increase in rupee deposit rates to make them more attractive to investors.
 Permission for banks to raise deposits to attract funds from informal sector.
 And revised prudential ratios on both credit expansion and maximum lending and
deposit rates.

Role of state bank of Pakistan

The State Bank of Pakistan (SBP) is the central bank of Pakistan. While its constitution, as
originally laid down in the State Bank of Pakistan Order 1948, remained basically unchanged
until January 1, 1974, when the bank was nationalized, the scope of its functions was
considerably enlarged. The State Bank of Pakistan Act 1956, with subsequent amendments,
forms the basis of its operations today. The headquarters are located in the financial capital of
Pakistan, Karachi with its second headquarters in the capital, Islamabad.

Under the State Bank of Pakistan Order 1948, the Bank was charged with the duty to
"regulate the issue of Bank notes and keeping of reserves with a view to securing monetary
stability in Pakistan and generally to operate the currency and credit system of the country to
its advantage". The scope of the Bank’s operations was considerably widened in the State
Bank of Pakistan Act 1956, which required the Bank to "regulate the monetary and credit
system of Pakistan and to foster its growth in the best national interest with a view to
securing monetary stability and fuller utilization of the country’s productive resources".
Under financial sector reforms, the State Bank of Pakistan was granted autonomy in February
1994. On 21st January, 1997, this autonomy was further strengthened by issuing three
Amendment Ordinances (which were approved by the Parliament in May, 1997) namely,
State Bank of Pakistan Act, 1956, Banking Companies Ordinance, 1962 and Banks
Nationalization Act, 1974. The changes in the State Bank Act gave full and exclusive
authority to the State Bank to regulate the banking sector, to conduct an independent
monetary policy and to set limit on government borrowings from the State Bank of Pakistan.
The amendments in Banks Nationalization Act abolished the Pakistan Banking Council (an
institution established to look after the affairs of NCBs) and institutionalized the process of
appointment of the Chief Executives and Boards of the nationalized commercial banks
(NCBs) and development finance institutions (DFIs), with the State Bank having a role in
their appointment and removal. The amendments also increased the autonomy and
accountability of the Chief Executives and the Boards of Directors of banks and DFIs.

1.2: Roles of the State Bank of Pakistan

 Banker to the Government: 

As banker to the government, SBP:

o Receives deposits on behalf of the federal government.

o Disburses payments on behalf of the federal government.
o Manages the national debt
o Lends money to the federal government as needed

 Head to Banks: 

As head to the scheduled banks, SBP:

o Holds deposits made by them as a part of their required reserves.
o Lends them funds as a “lender of the last resort”

 Acts as a Clearing House:

Provides facilities, physical and/or electronic, to scheduled banks to clear cheques and
other claims drawn against each other—deposited by their customers for collection--by
adding up what they owe or owed them and transfer funds from their accounts at SBP.

 Custodian of all Financial Institutions:

 One of the fundamental responsibilities of the State Bank is regulation and
supervision of   the financial system to ensure its soundness and stability as well as to protect
the   interests of depositors. The banking activities are now being monitored through a system
of ‘off-site’ surveillance and ‘on-site’ inspection and supervision.

 Issuer of Paper Currency:

State Bank has the sole authority to issue paper notes.  It has the prime
responsibility to control its supply in order to ensure a stable price of money, i.e., its
value or purchasing power.  Its notes, however, are not convertible into gold or silver.

 Exchange Rate Management and Balance of Payment:

The Bank is responsible to keep the exchange rate of the rupee at an appropriate
level and prevent it from wide fluctuations in order to maintain competitiveness of our
exports and maintain stability in the foreign exchange market.  As the custodian of country’s
external reserves, it is responsible for management of the foreign exchange reserves.

 Enriching Roles of SBP:

The Bank’s participation in the development process has been widened in the form of
remedy of banking system,

o Development of new financial institutions and debt instruments

o Establishment of Development Financial Institutions,
o Directing the use of credit according to selected development priorities,
o Providing subsidized credit,
o Development of the capital market.

 Non-traditional Role:

The non-traditional or promotional functions, performed by the State Bank include:

o Development of financial framework

o Institutionalization of savings and investment
o Provision of training facilities to bankers
o Provision of credit to priority sectors

 To Define and Implement the Monetary Policy of Pakistan

The tools of the monetary policy are:

 o Changing the monetary base:
o Changing the reserve requirements: 
o Changing the discount rate: 

1.3: List of banks busy in Pakistan

 PUBLIC SECTOR BANKS

First Women Bank Limited
The Bank of Khyber
National Bank of Pakistan
The Bank of Punjab

 ISLAMIC BANKS
BankIslami Pakistan Limited
Emirates Global Islamic Bank
Dawood Islamic Bank Limited
Meezan Bank Limited
Dubai Islamic Bank Pakistan Limited

 PRIVATE BANKS
The Royal Bank of Scotland Limited
JS Bank Limited
Allied Bank Limited
KASB Bank Limited
ArifHabib Bank Limited
MCB Bank Limited
Askari Bank Limited
Mybank Limited
Atlas Bank Limited
NIB Bank Limited
Bank Alfalah Limited
Saudi Pak Commercial Bank Limited
Bank Al Habib Limited
Soneri Bank Limited
Crescent Commercial Bank Limited
Standard Chartered Bank (Pakistan)
Limited
Faysal Bank Limited
United Bank Limited
Habib Bank Limited
 Habib Metropolitan Bank Limited

 FOREIGN BANKS
Albaraka Islamic Bank B.S.C. (E.C.),
The Bank of Tokyo-Mitsubishi UFJ
Limited – Pakistan Operations
Citibank N.A. – Pakistan Operations
HSBC Bank Middle East Limited
Pakistan
Deutsche Bank AG – Pakistan
Operations
Barclays Bank PLC
Oman International Bank S.A.O.G
Pakistan Operations

 DEVELOPMENT FINANCIAL INSTITUTIONS

House Building Finance Corporation
Pakistan Kuwait Investment Company Limited
Pak Brunei investment Company Limited
Pak Oman Investment Company Limited
Pak Iran Joint Investment Company
Saudi Pak Industrial & Agricultural Investment
Company Limited
Pak Libya Holding Company Limited
China Investment Company Limited

 SPECIALIZED BANKS
Industrial Development Bank of Pakistan
The Punjab Provincial Cooperative Bank Ltd
SME Bank Limited
ZaraiTaraqiati Bank Limited

 MICRO FINANCE BANKS / INSTITUTIONS

Khushhali Bank Limited
Rozgar Microfinance Bank Limited
Network Microfinance Bank Limited
Tameer Micro Finance Bank Limited
Pak Oman Microfinance Bank Limited
The First Micro Finance Bank Limited

1.4: EVOLUTION OF BANKING

Banks are in some senses a very old profession, but the modern way of banking affecting the whole
of society so much is of course very new. The first banks were probably religious temples of
the ancient world. In them was stored gold in the form of easy-to-carry compressed plates. Their
owners justly felt that temples were the safest places to store their gold as they were
constantly attended, well-built and were sacred, thus deterring would be thieves. There are
extant records of loans from the 18th century BC in Babylon that were made by temple
priests to merchants.

1.5: Contemporary BANKING:

Banking in its modern form and structure started in Britain when many of the Lombardy merchants came
to England in the 14THCentury and settled in the parts of the city of the London now calledLombard
Street.
The King Edward-III established the office of Royal Exchanger in 1565 for changing
foreign money at a profit for the benefit of crown. At that time moneychangers were already
called bankers, though the term "bank" usually referred to their offices, and did not carry the
meaning it does today. Around the time of Adam Smith (1776)there was a massive growth in the
banking industry. Within the new system of ownership and investment, money holders were able
to reduce the State's intervention in economic affairs, remove barriers to competition, and, in
general, allow anyone willing to work hard enough-and who also has access to capital-to
become a capitalist. It wasn't until over
100 years after Adam Smith, however, that US companies
began to apply his policies in large scale and shift the financial power from England to America. By
the end of 2000, a year in which a record level of financial services transactions with a
market value of $10.5 trillion occurred, the top ten banks commanded a market share of
more than 80% and the top five, 55%. Of the top ten banks ranked by market share, seven
were large universal-type banks(three American and four European), and the remaining three
were large U.S. investment banks who between them accounted for a 33% market share. This
growth and opportunity also led to an unexpected outcome: entrance into the market of other
financial intermediaries: nonbanks. Large corporate players were beginning to find their way
into the financial service community, offering competition to established banks. The main
services offered included insurances, pension, mutual, money market and hedge funds, loans
and credits and securities.

Indeed, by the end of 2001 the market capitalization of the world's 15 largest financial
services providers included four nonbanks.

1.6: DEFINITIONS OF BANK

“Banks are guardian distributor of money”
 
“Banks do business of money. Rather banks do business of lending & borrowing money”
 
“Banker or a banker or a person or a company carrying on the business receiving moneys and
collecting drafts for customer’s subject to the obligation of honoring cheques drawn upon them
from time to time by the customer to the extent of the amount available on their current accounts”
 
1.7: Categories OF BANKS
Commercial banks:
The term used for a normal bank to distinguish it from an investment bank. After the Great
Depression, the U.S. Congress required that banks only engage in banking activities, whereas
investment banks were limited to market activities. Since the two no longer have to be under
separate ownership, some use the term "commercial bank" to refer to a bank or a division of a
bank that mostly deals with deposits and loans from corporations or large businesses.

Community banks:
Locally operated financial institutions that empower employees to make local decisions to
serve their customers and the partners.

Community development banks: 

Regulated banks that provide financial services and credit to under-served markets or
populations.

Postal saving banks:

Saving banks associated with national posting systems.

Private banks:
Banks that manage the assets of high net worth individuals.

Offshore banks: 
Banks located in jurisdictions with low taxation and regulation. Many offshore banks are
essentially private banks.

Savings banks:
In Europe, savings banks take their roots in the 19th or sometimes even 18th century. Their
original objective was to provide easily accessible savings products to all strata of the
population. In some countries, savings banks were created on public initiative; in others,
socially committed individuals created foundations to put in place the necessary
infrastructure. Nowadays, European savings banks have kept their focus on retail banking: payments,
savings products, credits and insurances for individuals or small and medium-sized enterprises.
Apart from this retail focus, they also differ from commercial banks by their broadly
decentralized distribution network, providing local and regional outreach and by their socially
responsible approach to business and society.

Ethical banks:
Banks that prioritize the transparency of all operations and make only what they consider to
be socially-responsible investments.

Types of investment banks:

Investment banks:
Investment Banks are Non-Banking Financial companies (NBFC) and are regulated by Securities &
Exchange Commission of Pakistan (SECP). An NBFC is a financial institution which does not
have banking license, but do provides banking services. 

1.8: INTRODUCTION TO THE ORGANIZATION

1.8(i): History
The bank was registered in 1924 to accomplish the three-tier system of
cooperative credit in the province of Punjab. It is engaged in all types of banking & credit
business with societies and individuals. Primary cooperative societies constituted the base;
the central cooperative banks were at the secondary level and at the top were the Punjab
Provincial cooperative bank limited serving as an apex bank for providing credit to the
cooperatives.
The PPCBL gained the status of Scheduled Bank in 1955.  PPCBL was organized and being
managed on the principal of voluntary and open membership, democratic member control,
member economic participation, autonomy, independence, self-help and mutual cooperation.
In October 1976, the Federal Government Promulgated the "Establishment
of Federal Bank for Cooperative and regulation of cooperative banking
ordinance", whereby the cooperative banking system in the Punjab was converted from three
tiers into two tiers resulting in the dissolution of 46 central/ urban and industrial cooperative
banks and banking unions. According to the provisions of the ordinance, the undertakings of
the Dissolved Cooperative Banks stood transferred to and vested by in the Punjab provincial
cooperative Bank Limited on the terms and conditions notified by the provincial Government
in order to manage and control the undertakings of the dissolved cooperative Banks

1.8(ii):The Participation of organization in Economy

Cooperatives play an important role worldwide in poverty reduction, facilitating people in
construction of homes, provision of agric-loans, economic growth and social development
however the cooperative societies of today suffer a lot of setbacks in Pakistan due to tilted
attitude of the government authorities.

 Element of Pakistan’s Economy:

The recently devastating floods that have rampaged the northern areas, parts of central and
southern Punjab and the area of Sindh, will adversely impact the economy of Pakistan as
donors and investors’ concerns are growing over the disaster’s impact on an already fragile
economy. The country’s economic growth target for the fiscal year 2010-2011 would have to
be revised downwards once the exact extent which as regards direct loss to major crops
according to initial estimates is Rs 281 billion.

 Bank’s performance:
Despite present conditions by the grace of Allah your Bank. Which is a part of the Punjab
Cooperative Movement, has made a slow but steady progress as can be seen from the
attached financial statements for the year ended on 30,2010. The total assets of the Bank
stood at Rs 15.3bln, an increase of 11.7% over the corresponding period. The bank focused
and realigned its efforts to recover Rs 0.8bln which consequently lead to a drop in its non-
performing loan taking the accumulated figure to Rs 1.6bln as at June 30, 2010.

 Reestablishment Plans:
The bank continues to implement its restructuring plans already submitted to the state bank of
Pakistan. In light of this plan several manual such as The Operational Manual, business
continuity plan, Audit Manual, Risk Management policy, Anti audit framework internal
credit risk policy and human resource manual have been prepared put in place. The
preparation of other manuals is in progress and is expected to be in place well before June 30,
2011. Moreover, a professional an experienced banker as its president

And three other senior executives via Head of Business Development, Head of Recovery and
legal and Chief Financial Officer have been hired and are expected to guide and steer the
Bank towards stability and progress.

 Future Outlook
In addition to rolling out an impressive non-performing loan’s strategy for recovery of stuck
up loans the litigation process has been vigorously initiated. To show great resilience in
future to infected portfolio, all stuck up loans have been referred to the concerned courts and
almost 75% verdicts have been awarded in the Bank’s favor. Execution is in progress to get
the defaulter’s properties transferred in the bank’s name. The Management is quite hopeful
that in the coming financial year a good majority of the infected portfolio will be cleaned up.
1.9: Business Philosophy
The Punjab provincial cooperative bank limited is a scheduled Bank, at
present, having 161 branches at district, tehsil headquarters and important midtowns. Over
38000 cooperative societies are affiliated with the Bank. The paid up share Capital of the
bank amounts to Rs. 112.518 million, out of which the Provincial Government subscribes
shares worth Rs.16.235 million. The authorized share capital of the Bank consists of
unlimited number of shares of Rs. 100 each. A member cooperative society, which has to
borrow loan from the Bank for its members, has to purchase at least shares equal to 2% of the
MCL of the society fixed with the Bank.

1.10: Vision of Organization

To be a well-structured and efficient Cooperative financial institution for helping its members
and individuals to unite voluntarily for building up their resources and meeting their common
socioeconomic needs through democratically controlled enterprise.

1.11: Mission of Organization

To be a well structured and efficient Cooperative financial institution for helping its members
and individuals to unite voluntarily for building up their resources and meeting their common
socioeconomic needs through democratically controlled enterprise.

1.12: Main Ambition of the Bank 

 Promote growth of the Cooperative movement.

 Carry on banking and credit business to facilitate working of the member

Cooperative Societies.
 Accept deposits of money and other funds from the public, repayable on
demand or otherwise, and withdrawal by cheque, drafts, order or otherwise, for the
purpose of lending or investment;

 Borrow or raise money;

 Lend or advance money either upon or without security to member societies and any
other person in such manner as may be necessary;

 Serve as  a balancing  Centre  for cooperative  societies  in  its

area of operations;

 Take measures designed to improve the working and thereby the usefulness of the
member societies;
 Inspect, supervise and estimate credit of member societies and any
other person;

 purchase, sell, transfer, endorse, pledge or otherwise negotiate securities of the

Government, Government of Pakistan, promissory notes, bonds, municipal and
port trusts bonds, debentures, shares and other securities specified under
section 37 of the Act for legitimate investment of surplus funds of the
Bank or for the members or depositors without incurring any financial
responsibility and to draw return thereon and to do other things incidental to
such business.

 Act as agents for the Government or public bodies or member societies and their
members or any other bank with the previous sanction of the Registrar.

 Receive for safe custody securities, documents and ornaments upon such
terms as may be fixed by the Board of Directors or any office-
b e a r s o r   officers authorized by the Board of Directors;

 Establish, support, or aid in establishment funds, trusts and

conveniencesc a l c u l a t e d   t o   b e n e f i t   e m p l o y e e s   o r   e x - e m p l o y e e s  
o f   t h e   B a n k   o r   t h e dependents and grant pensions;

 Advance loans and overdrafts to the members of the staff of the

B a n k , against sufficient securities acceptable to the Bank, in accordance with the
rules framed in this behalf by the Bank and approved by the Registrar;

 Grant loans and overdrafts to depositors of the Bank against their

f i x e d deposits;

 Acquire, sell, mortgage or lease lands and buildings, and build structures,
god owns and houses for its own use or for those of its member societies;

 Manage, sell and realize any property which may come into the possession of the
bank in satisfaction or part satisfaction of any of its claims;
  provide educational assistance and training to members of the member societies or
staff of the Bank or of the member societies;
 
 Afford financial assistance including donations to co-operative societies and
institutions engaged in promoting the cause of co-operative movement and
co-operative education and training;

 Open branches, sub-branches, sales & service centers and booths and to
transact business, with the permission of the regulators, so as to provide
banking services to the public;

 Grant and issue letters of credit and travelers’ cheques;

 Collect and transmit money and securities;

 Negotiate loans and advances;

 Carry on and transact every kind of guarantee and indemnity business;

 Use computer or other electronic systems or delivery channels for banking products
and services;

 Enter into participation arrangement(s) with any other bank or banks

or financial institutions with the object of making loans and advances;

 Acquire, manage and undertake the whole or part of  business of any

other cooperative society;

 Help the growth of the co-operative movement;

1.13: Market Existence of Organization:

 Strong clientele base earned over 85-years.

 Deep rooted penetration / bearing in agriculture community.

 Extensive Branch Network at grass root level.

 Catering to financial requirements of around 0.3 million small farmers of members
societies and individual borrowers in a year.

 Lending products launched without large scale publicity–immediately responded by

the target group.

 Allocated funds often fall short in meeting demands of the borrowers PPCBL with
its extensive network of 161 branches at grass root level has all the
necessary resources to be successful Bank. The Punjab Provincial
Cooperative Bank Limited is a leading Cooperative Bank in the field. PPCBL
will also have its commercial banking operations diversified dealing in
similar lines as other successful banks do. The Bank paramount
objective is not profit maximization but to help needy people. But it will
utilize its resources to the best to provide maximum effectiveness and also provide
quality services to its customers.

 The current manual procedures of operations will be automated.

 The Bank is contemplating to diversify its operations in other lines of business.

 Developing a sense of urgency and high degree of motivation among the employees.

 Control over fraud and risks.

 Recovery of non-performing loans.

 Separate operation of internal control department which will be strengthened.

 The control environment in the Bank.

 Innovative solutions to all current problems and contingencies in Bank.

 Chapter No: 2
Management System
2.1: Organizational Structure:
             

                            

General Body
 1 . S u b j e c t t o t h e p r o v i s i o n s o f t h e A c t a n d r u l e s , t h e supreme authority
of the Bank shall vest in the General Body.

2. The General Body shall consist of:

a) Ex-officio members of the Bank:

b) Nominated professional members of the Bank; and

c) District delegates elected in the district meetings

of member societies.
Board of Directors
The Board of Directors shall consist of –

(a) Registrar, who shall be its Chairman;

(b) President;

(c)Two non-official professionals nominated by the registrar under By law

(d) Three elected a member, who is qualified to be elected as  Director under the

election rules.

Management of the Bank

Under the overall supervision, control and administration of the President, the
management of the Bank shall run day-to-day affairs and operations of the Bank
strictly in accordance with the objectives, strategies, plans, rules,  policies
and regulations approved  by the General Body or the Board of Directors, the
Act, rules and regulations or instructions of the State Bank of Pakistan.

Governing Body of the Bank

The supreme authority of the Bank is general body represented by all the
shareholders through 660 delegates, elected at the rate of 1 per 50
shareholders. The general management of the Banks subject to the control of
elected Board of Directors Ownership
 PPCBL has a unique status being a ‘peoples’ bank and is owned by around 33, 0000
cooperative societies, mostly the agricultural thrift and credit cooperative societies
(shareholding pattern: General public 3% and Cooperative Societies 97%).
: Banking Affairs

It is performing all the main banking functions of deposit mobilization, supply of

credit and provision of remittance facilities with limited banking products and
functionally specialists in agriculture related products. PPCBL, as a principle, does not
pursue the goals of profit maximization. It has strong linkages with rural agricultural
economy. There exists strong nexus between Bank and Cooperative Movement / Department.
Thus PPCBL has been the main pillar of Cooperative Movement having a history of
over 80 years playing a pivotal role with its service oriented approach.

Source of Financing
.
 In the year 2002, Federal Bank for Cooperatives was placed under liquidation. After that the
State Bank of Pakistan (SBP) started providing funding support to PPCBL through its
Agricultural Credit Portfolio. The funding remunerated at GOP T. Bills Rate
ranging between 8 to 9 percent. However, the funding support was withdrawn
by the SBP in

01.07.2007 due to change in its monetary policy Thereafter, the bank is

managing its business operations through refinancing of recoveries from own
sources.

Branch Chain

The Bank has an extensive network of 161 branches servicing the small farmers. It is the
only surviving Cooperative Bank in the four Provinces being a Specialized
Scheduled Cooperative Bank.

Rules &Regulation

Being Scheduled Bank, PPCBL falls under the regulatory control of SBP and
bound to follow  SBP Prudential  Regulations to the extent applicable.
Being Cooperative Bank, it functions under the supervision of Registrar Cooperative,
Societies, and Punjab.

Prevailing Threats
 Liquidity problems due to withdrawal of credit line by SBP

 Rightsizing of Board of Directors

 Weak system and procedures

  Lack of I.T. infrastructure

 Recovery of overdue loans

 Sustaining operating losses mainly due to high cost debt servicing to SBP

 HR Development issues

Restructuring
Currently, an extensive restructuring exercise has been undertaken to make the PPCBL
available and self-sustained Bank for rural masses. For this purpose, a 5-Years Restructuring
Plan was prepared and submitted to State Bank of Pakistan (copy
a t t a c h e d ) . R e f o r m initiatives taken so far as under:

 Organizational Structure revamped

 A full time Managing Director / COO appointed

 Board of Directors right-sized (now consists of 7 members instead of 40)

 Credit, Audit, Operations and Risk Management Manuals prepared

 Audit & Inspection Cells at Zonal Offices Shifted to H
e a d   O f f i c e   a n d reorganized in 4 Teams

 Automation of systems & procedures initiated

 S u r p l u s   s t a f f   l a y   o f f   a n d   i n d u c t i o n   o f   q u a l i f i e d   p r o f e s s i o n a l s   – 
p r o c e s s initiated.

Management hierarchy
PRESIDENT/CEO

ZONAL CHIEFS/ SVP

 VICE PRESIDENT/SVP

HEADS/SVP

Dy, HEADS/EVP

MANAGERS/AVP

OFFICERS GRADE II, III

CLERICAL & TECHNICAL STAFF

Corporate Profile

The complete profile of the people who serves as the think tank of Punjab
provincial Cooperative Bank is given in hierarchical order in the following
lines.
  
 

 
Management Duties:

The Duties of the President

The  President  /  CEO  shall  supervise  general  management  and
administration of the affairs and business of the Bank in accordance with the
objectives, strategies, plans, rules, policies and regulations approved by the General Body or
the Board of Directors;

 To oversee Administrative functions.

  To ensure banking operating procedures are developed and implemented.

 To improve organizational structure of  the bank in the best interest of the

bank.

 To supervise the recruitment and efficient control on the Human Resource.

 To ensure the performance of management, training and developm
e n t process of all the departments in the bank.

 To set performance targets, monitor and provide guidance for development of banking

activities.

 To prepare and develop policies surrounding investment, loan and interest reserve
policies according to the best practices in vogue.

 To communicate with the regulators.

 To represent the bank in all forums.

 To supervise and plan for the budgets and financial activities of the Bank.

 To supervise any other affairs of the bank 

The Duties of the Executive Vice President:
Predominantly dealing with the Assets, Liability and Operational aspects of the
bank and monitoring, strategizing and controlling the business
needs/requirements and assigned targets.

(A)Strategic Role:

 New business development  

 Brand Building Strategies
 Identification and segregation of potential Market Segments
 Revenue generation through new account development and key account management

(B)Operational Role:

 Responsible for achieving sales target
 Defining the exact marketing processes and  responsible for executing the
same.
 Developing relevant business proposals
 Monitor market Intelligence within the industry in terms of market
development, new projects, competitive activity, new customers etc.
 Handling meeting with key clients
  Provide necessary training to sales team as and when needed

(C) Organizational Role:

 To enhance organizational effectiveness  through setting up appropriate

marketing strategies
 Consistent follow-through and resourcefulness, in order to achieve
organizational goals and objectives

The Duties of Board of Directors:

The general superintendence and direction of the affairs and business of the Bank and
overall policy making in respect of its operations have been vested in the Board
of Directors which may exercise all such powers and do all such acts, deeds and
things i n t h e i n t e r e s t , w e l f a r e a n d p r o m o t i o n o f t h e B a n k . T h e p o w e r s
a n d d u t i e s o f t h e Board of Directors to run the affairs of the Bank are:-
1. To approve and monitor the objectives, strategies and overall business plans
and to oversee that the affairs of the Bank are carried out prudently within the frame work of
Cooperative Societies Act, 1925, the Rules framed there under, these Bye-laws,
prudential regulations of SBP and other laws to the extent applicable.
2. To supervise the maintenance of accounts of all moneys received and paid;
3. To allow opening of accounts in the name of the Bank with the State Bank
of Pakistan or such other Banks / institutions subject to the approval of President;
4. To approve and ensure implementation of policies, including but not limited to, in areas of
Risk Management, Credit, Treasury & Investment, Internal control system and audit, IT
security, Human resource, Expenditure, Accounting & Disclosure, and any other operational
area which the board and/ or the management may deem appropriate from time to time, and
to review and update them periodically or whenever it is desirable.
5. To supervise the maintenance of up to date record of members;

6. To issue new shares and to confirm transfer of shares;

7. To fix limits for advances and guarantees to various member

societies and individuals with the general permission of the registrar.  

8. To prepare annual budget of the bank for approval of

general meeting;

9. To decide the terms / periods and the rates of mark-up at which loans
and guarantees are to be given and to arrange for the recovery of loans
and guarantees and mark-up;
10. To decide the terms / period and the rates of mark-up at which deposits are to
be received and to arrange for their payment or return of deposits and to grant loans and
overdrafts to depositors of the Bank;

11. To enter into arrangements for the raising of loans, to enhance other capital are solved in
general meeting and to pledge the bank’s assets for such purposes.

12. To institute, conduct, defend, compromise refer to arbitration or abandon legal

proceedings by or against the Bank or its committee or officers or employees, concerning the
affairs of the bank, through any member or officer or employees of the bank.

13. To examine the accounts and to sanction requisite expenditure;

14. To summon General Meeting under byelaws No.19;

15. To facilitate annual audit and to prepare and submit to the General Meeting
the annual report and audited balance-sheet.

16. To appoint, subject to the recommendation of the President, Management
executives as may be considered necessary for the conduct of bank’s business.
 
17. To form committees with well-defined objectives, authorities and tenure on its behalf.

18. To ensure existence of an effective ‘Management Information

System’ to remain fully conversant of the activities, operating
performance and financial condition of the Bank, the environment in
which it operates the various risks it is exposed to and to evaluate
performance of the Management at regular intervals;

19. To purchase, sell, transfer, endorse, pledge or otherwise negotiate securities of

Government of Pakistan, and Provincial Government, Promissory Notes, Bonds, Securities,
debentures, Shares and other securities specified under section 37 of the cooperative societies
Act 1925 for legitimate investment of surplus funds of the bank and to draw return thereon
and to do other things incidental to such kind of business;

20. To fix terms and conditions to receive for safe custody and to re-
p l e d g e securities and other valuable and to authorize any office bearers or officers of the
Bank in this behalf.

21. To determine terms and conditions of commission to act as agent

f o r t h e member Cooperatives Societies.

22. To decide the terms / period and the rates of mark-up at which
l o a n s a n d advances to staff members are to be made and recovered and to frame rules in
this behalf subject to the approval of the Registrar;
23. To approve and decide matters of urgent importance in the absence of the
general meeting

24. To sanction financial assistance including donation to Cooperative Societies

and Institutions engaged in promoting cause of Cooperative movement and
Cooperative Training and Education

25. To draw, accept, endorse, discount, buy, sell bills of exchange, and
o t h e r   instruments.
 
26. To buy, acquire, hire, lease or sell lands and buildings, to build structures, go
downs and houses for its own use or those of its Member Cooperative
Societies.
27. To ensure that the work of the Bank is carried out in accordance
w i t h i t s objects and to exercise such powers or take appropriate actions;
28. To hear appeals against the orders and decision of the Management
o r t h e Authorities / Committees
29. To appoint President/Chief Executive Officer of the Bank, who meets fit and
proper Test criteria of the State Bank of Pakistan for a period not less than two years on such
terms and conditions specifically prescribed

For the p o s t o n t h e r e c o m m e n d a t i o n o f t h e R e g i s t r a r C o o p e r a t i v e s a n d t o
e x e c u t e service contract with the person so appointed;
30.  The President / CEO shall supervise general management and
administration of the affairs and business of the Bank in accordance
with the objectives,, strategies, plans, rules, policies and regulations
approved by the General Body or the Board of Directors.
31. The Board of Directors shall prudently conduct affairs of the Bank and shall
be responsible for any loss caused by negligence or any willful act;
32. To arrange for Internal Audit, External Audit and to
facilitate SBP Inspection of the Bank;
33. To arrange compliance of Internal Audit, External Audit or SBP Inspection reports; to
arrange for internal audit of the bank as well as its branches for which a separate cell may be
created.
34. To frame and amend service rules of the employees of the Bank to govern,
administer and regulate their services, subject to the approval of the Registrar;
35. To lay the procedure and manner in which the capital of the Bank
m a y b e increased or reduced.

POLICY FORMATION PROCESS:

Punjab provincial cooperative bank limited policy formulation process is carried out by the
top level managers. Executive committee is responsible for designing policies in order to achieve strategic
objective. The committee holds meetings on monthly basis and half year basis. The committee
consists of members including;
 
 Board of Director

 
 Chief Executive Officer

 
 Executive-in-charge of strategic planning and global marketing.

: MAJOR ACTIVITIES

Major functions performed by the executive committee are as follows;

 
 Analyzing the overall growth of bank.

 Defining the features of policy.

 
 Do the virtual testing.

 
 Remove the flaws.

 
 Implementation of the policy.

: MANAGERIAL POLICIES
In PPCBL, the policies are of three types:

 Operational policies

 Credit policies

 Human recourse policies

OPERATIONAL POLICIES
Operational and system division is responsible for the formation of the operational policies.
Executive in charge of the system and the operation division is there to implement the
operational policies. It is the duty of executive-in-charge to:
 
 Monitor the overall operation of the bank 

 Activities performed by operation department of different branches

 Analyzing the workflow of different departments such as remittance, current depositd
epartment, and account department

 Rate of increase in deposits of different branches

 Specify the rules regarding the account maintenance Executive in charge also designs
the motivational policies for:
 
 Agricultural Finance

 Gold finance

 Leasing

CREDIT POLICIES
Two division form credit policies:

 
 Credit Division

 Credit Monitoring Division

CREDIT DIVISION
Major purpose of credit division is to approve corporate loans, short and long term loans.
Real earning for the bank comes from the credit division. Executive-in-charge of the credit division is
responsible for making lending policies that are duly approved by the board of directors and
followed by different branches. Credit division design the policies after taking into account
the credit policies made by SBP. Credit department of all branches must follow all the
instructions given by the Executive-in-charge of the credit division.

CREDIT MONITORING DIVISION

Credit monitoring division monitor overall credit exposure and takes analytical and
systematic approaches to its credit structure categorized by group industry. This division has
built up and maintains a sound loan portfolio in terms of well-defined credit policy. Bank
credit a valuation system comprises of well-defined credit appraisal, sanctioning and review
procedures for the purpose of emphasizing prudence in its lending activities.

HUMAN RESOURCE POLICIES

The establishment of policies can help an organization demonstrate, both internally and
externally, that it meets requirements for diversity, ethics and training as well as its
commitments in relation to regulation and corporate governance of its employees. For
example, in order to dismiss an employee in accordance with employment law requirements,
amongst other considerations, it will normally be necessary to meet provisions within
employment contracts and collective bargaining agreements. The establishment of an HR
Policy which sets out obligations, standards of behavior and document disciplinary
procedures, is now the standard approach to meeting these obligations.
HR policies can also be very effective at supporting and building the desired organizational
culture.
Development of the professional skills and knowledge of the employees is essential for the
efficient functioning of the organization. At Bank appropriate design policies and practices have been
instituted to achieve strategic objective. HR policies are made by the Executive-in-charge of
human resource division. These policies are as follows:
 

 HR Development

 
 Type of Human Development

 
 Type of loans provided to staff member

 
 Setting the career path of the employees

 
 Staff training programs

 
  Promotion of the staff members according to the performance

 
 Policies about the staff bonuses and staff benefits scheme

 Recruitment of staff

 Transfer of staff

 On job Training of staff

 Union issues

 Evaluation of staff

 Equal job opportunities

 Personnel information system

Process Guide:

In the Process guide we are discuss:

Management and Administrative Styles:

Management style can best be described as somewhat bureaucratic despite the fact
that organization is Semi Government. The officers have an equal opportunity for
development and grow, though the pattern is not the same for all employees of the
organization. People are recruited into the company based on references, head hunting and
sometimes on merit too and with disregard to considerations of gender, race, color or creed.
Performance evaluations are conducted on the basis of the employee category. Promotions
are similarly guided by merit and the suitability of an employee to the position for which he
or she is being considered. Leadership follows the principle of 'management by walking
around', where managers are expected to make daily rounds of all areas of responsibility, and
have first-hand information of all significant happenings.
 This informal style of management may seem arbitrary, but is serious without being
intimidating and has stood the company in good stead over the years. Working environment
is quite friendly, however, Autocratic Style is being followed i.e., Decision environment is
not participative. Heads of different departments participate to some extent in decision
making but the executive level employees don’t participate in goals setting and strategies
formulation. They just follow, what their managers ask them to do. There is an environment
of “Yes Boss” around the organization.

Impact on Motivation of Employees:

No doubt, employees of management level are highly motivated to enhance the
performance of the organization and to achieve the desired goals; despite highly centralized
environment, employees at executive level are very motivated towards achievement of the
goals of the organization and to enhance the performance of the organization. The salary
package is change during the new budget and well placed in keeping the executive level staff
motivated and satisfied.

Impact on Productivity of the Employees:

Employees at clerical level don’t exhibit high efficiency and productivity due to lack of
participative environment and intrinsic and extrinsic rewards. Executives exhibit satisfactory
productivity; they fulfill their responsibilities and duties in time and possess and exhibit the
morale to exceed the standards or to increase performance levels to drive their organization
forward. Also, employees at management level exhibit high efficiency level due to their
participation in goals making and satisfactory salary packages.

Job Satisfaction of Employees:

As discussed earlier, the staff at all levels at PPCBL is satisfied with their packages and jobs
in general. The employee turnover is not very high, though many engineers view PPCBL as a
very lucrative opportunity to start their career with. Also, the market reputation supports their
thinking and PPCBL holds a great standard for the entrants.

Issues:
Board of directors’ issue is unresolved for more than 5 years. Now all the decisions
are taking by the Administrator/Sec cooperative.

 Right downsizing
 Employee Morale
Downsizing because of Corruption:

Organization dismissed or fired some employees because of corruption and other ethical
issues involved in it.

Employee Morale

After the deregulation, an issue arise which is employee morale. It is seemed that due
to deregulation employees has threat about their jobs. When privatization was made there are
many employee layoffs, due to which it distorts the moral of the employee, they even have no
hope of their job. In this regard, PPCBL takes the steps for the moral of employees, job surety
and gives the incentives, accommodation, house rent allowance, school fee of the Childs
hospital facilities only for high rank employees etc.

Chapter No: 3
Marketing Mix
MARKETING MIX :
Now, we discuss the marketing mix,

Marketing mix is the set of controllable, tactical marketing tools ___ product, price, place and
promotions that work together to achieve company's objectives.

 Product
 Price
 Placement
 Promotion

PRODUCT:
Product is one of the important of the marketing mix

It is defined as:

“Anything that can be offered to a market for attention acquisition, use or consumption that
might satisfy a want or need‖’’.

 OR 

“A tangible object or an intangible service that is produced in massive level or manufactured

on a large scale with a specific volume of units. Intangible products are often service based.

A product is seen as an item that satisfies what a consumer needs or wants. It is a tangible
good or an intangible service. Intangible products are service based like the tourism industry,
the hotel industry and the financial industry. Tangible products are those that have an
independent physical existence. Typical examples of mass-produced, tangible objects are the
motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a
computer operating system.

Every product is subject to a life-cycle including a growth phase followed by a

maturity phase and finally an eventual period of decline as sales falls. Marketers must do
careful research on how long the life cycle of the product they are marketing is likely to be
and focus their attention on different challenges that arise as the product moves through each
stage.

The marketer must also consider the product mix. Marketers can expand the current
product mix by increasing a certain product line's depth or by increasing the number of
product lines. Marketers should consider how to position the product, how to exploit the
brand, how to exploit the company's resources and how to configure the product mix so that
each product complements the other. The marketer must also consider product development
strategies.

Price:
The price is the amount a customer pays for the product. The price is very important as it
determines the company's profit and hence, survival. Adjusting the price has a profound
impact on the marketing strategy, and depending on the price elasticity of the product, often it
will affect the demand and sales as well. The marketer should set a price that complements
the other elements of the marketing mix.

When setting a price, the marketer must be aware of the customer perceived value for
the product. Three basic pricing strategies are: market skimming pricing, market penetration
pricing and neutral pricing. The 'reference value' (where the consumer refers to the prices of
competing products) and the 'differential value' (the consumer's view of this product's
attributes versus the attributes of other products) must be taken into account.

Promotion:
Represents all of the methods of communication that a marketer may use to provide
information to different parties about the product. Promotion comprises elements such as:
advertising, public relations, personal selling and sales promotion.

Advertising covers any communication that is paid for, from cinema commercials,
radio and Internet advertisements through print media and billboards. Public relations is
where the communication is not directly paid for and includes press releases, sponsorship
deals, exhibitions, conferences, seminars or trade fairs and events. Word-of-mouth is any
apparently informal communication about the product by ordinary individuals, satisfied
customers or people specifically engaged to create word of mouth momentum. Sales staff
often plays an important role in word of mouth and public relations (see 'product' above).

Place:
Refers to providing the product at a place which is convenient for consumers to access. Place
is synonymous with distribution. Various strategies such as intensive distribution, selective
distribution, exclusive distribution and franchising can be used by the marketer to
complement the other aspects of the marketing mix

Organization Marketing Mix:

Products of Organization:
 Due to trend setting, PPCBL presents a range of quality products with revolutionary
perks and convenience. PPCBL provides a wide range of quality products/services to its
customers, which can be compared with any foreign bank in terms of quality and reliability.
Here is an overview of products and services offered by PPCBL.

General Banking

 Deposit Accounts
 Current Accounts
 PLS Accounts
 PLS Term Deposits
 Short Notice Time Deposit
 Monthly Income scheme
 Remittances
 Bank Drafts
 Demand Draft / pay orders
 Mail Transfer (MT)

Lockers
 Small
 Medium
 Large
*Key Security refundable

Credit Products
 Agriculture Loan Through Cooperative Societies

 Production Loans

 Revolving Credit Crop Loan

 Live Stock Revolving Finance

 Medium Term Finance

 Live Stock Project Finance

 Individual Loan

 Live Stock Goat Sheep and Cattle Scheme

 Live Stock Project Finance Scheme

  Medium Term Finance

 Finance against Gold

 Finance against DSCs / SSCs

 Non Agricultural Loans

 Industrial Loans

 Finance to women Coop: Societies

 Computer Finance

 PPCBL Finance against salary

 Car / Auto Finance

Most important are as follow:

CURRENT ACCOUNT:
Noninterest bearing checking account Minimum account opening requirement of Rs. 5000
only No restriction on number of withdrawals and on number of deposits

PLS SAVINGS ACCOUNT:

Profit & Loss Sharing Saving Bank Account Minimum account opening requirement of Rs.
5,000 only No restriction on number of withdrawals and number of deposits. Profit on saving
accounts is credited to the customer account on half-yearly basis.PLS TDR A/C from 3
months to 5 years with different profit rates.

BASIC BANKING ACCOUNT:

Initial deposit for account opening is Rs. 500 with no minimum balance
requirement .Noninterest bearing checking account Maximum 2 deposits & 2
withdrawals through cheque is allowed.

Lockers:
Most branches of Punjab corporative Bank offer lockers for lease, in a variety of size sat
very competitive rentals. Locker facility is available to all customers maintaining
minimum balance requirements in their respective account categories

Late Payment Fee 20% of the annual rent amount:

Business related Rent Free Locker Facility may be allowed to the following CD A/C Holders.

1. An A/c Holder maintaining Min. Credit balance of Rs.0.3 M for the last one
quarter - Small Locker 

2. An A/c Holder maintaining Min. Credit balance of Rs.0.5 M for the last one
quarter - Medium Locker 

3. An A/c Holder maintaining Min. Credit balance of Rs.1.0 M for the last one
quarter - Large Locker 

Subject to availability in the branch where the A/c is maintained. Key Deposit
and breaking charges to be recovered provided however, that A/c holder is not availing

Loans Cooperative loans:

Agricultural Production Loans (Short Term)

 It was being disbursed on the funding of State Bank of Pakistan (SBP) and on the
guarantee of Government of Punjab. The SBP was sanctioning an annual
credit line to be remunerated on GOP T-bills rate. For the  financial year 2007-0 8 ,
SBP has not  sanctioned annual credit line of Rs.8,000 million
d u e t o which we are accommodating the small farmers from our own
sources. The current lending rate is 16% p.a.17% in case of default. The loaning is
being made as under:

 The loaning facility provided for sowing of Rabi (Oct –Jan) and Kharif (April-June)
crops for a period ranging from 8 to 10 months.

 Society to be registered under Section 10 of the Cooperative Societies Act,

1925 by the Cooperatives Department.

 Maximum Credit Limit of the Society to be fixed by the Co
o p e r a t i v e s Department as per Rule 7 & 8 and approved by the Bank.

 Society to submit credit demand statement of its members along with

other loan documents (Demand Promissory Note, Agreement, Audit Note, etc.) duly
recommended  by  Field  Staff  of  the  Cooperative  Department,  with the affiliated
Branch of the Bank.
  Loan documents of the Society scrutinized by the Branch Manager 
Advance disbursed after getting signatures or thumb impressions 
o f   t h e Managing Committee in person before him.

 Resolution of the Society for obtaining crop loan to be recommended by

the Cooperatives Field Staff.

 Credit Demand Statement.

 Managing Committee list bearing attested signatures.

 Land Ownership Certificate of Managing Committee issued by the Inspector, Coop:

Societies to be got verified from the Revenue Dept: after every 3-years.

 Resolution regarding Custodian of Society Books.

 Latest Audit Note of the Society.

 Loan Agreement between the Bank and Society.

 Demand Promissory Note.

 Financing facility provided 100% in cash as per policy and convenience of the
Borrower to get inputs of his choice from the Market.

 The society in its turn disburses loan to its members as per theirdemandstatement and
submitscredit disbursement statement within 7-days to the concerned Branch for end-
use verification of Coop: Department and Bank Officers.

 The society required to clear the loan with mark-up accrued thereon after two months
of the harvest of crop to become eligible for next crop loaning.

Development Loans for Members for Purchase of Tractors, etc. (Medium Term) This was
earlier granted on the funding of Federal Bank for Cooperatives
(under liquidation) and thereafter from SBP funding and now from own resources. The
salient features / procedures of the finance are as under: For purchase of Agricultural
Implements (Tractor-Actual Price, Thrashers. 150000/ Rotator, Rs.70,000, Discherro,
Rs.50,000, Trolley, Rs.100,000/ Meat &Mitch Cattle, Livestock and for installation of the
tube well/Turbine. Period of finance up to 5 years repayable in half yearly installments with
Mark-up @18% P.A in case of default 20 % P.A. loaning provided to a member through
respective affiliated registered Cooperative Society on fixation of special MCL for the
purpose by the Coop: Department duly approved by the bank management as well as special
MCL fixed by the society itself for incurring outside liability up to a maximum of Rs. 0.5
million. Borrowing member required to deposit margin money @20% of the loan demand,
with the Bank.

Loan advanced against Security of immovable property / agri. Land having value
double the amount of loan demand either through registered Mortgage Deed o r A g r i . P a s s
B o o k S y s t e m u n d e r t h e L a w o f L a n d M i n i m u m S e c u r i t y 4 0 Kanals of
Agricultural Land irrigation or 100 kanalsofbarrani lands. Complete Loan documents with
quotations, on the choice of Borrower, to be provided with the loan application duly
recommended by the field staff of the Coop. Department. Sanction of loan Branch level and
after having CIB report from the SBP. Loan cases to be processed and finalized within 15
days. Delivery of tractor through local dealer approved by the company and for implements,
etc. Issuance of pay order in favor of the supplier. Tractor/implements required to be got
comprehensively insured from any of the approved insurance company on the panel of the
bank for the five years at the time of issuance of finance and delivery of tractor. For the
convenience of the small farmers a booklet (in Urdu) containing procedure and relevant loan
documents available in all branches. MTF for members of Cooperative Societies up to
Rs.20,00,000/ @5,00,000 per borrower under General permission of MCL of RCS for a
period of 5 years repayable in 10 equal installments against 5 acre per borrower.

Development Loans for non-member Agriculturists:

On the emphasis of Government of Punjab for liberal financing towards
agricultural sector, PPCBL introduced this scheme for individuals (non-
members). The salient features are: -Admissible to Individual farmer for purchase of Farm
Machinery, viz. Tractor, Tube well, Thrashers, Trolley, etc. ad Transport for carriage
from farm to market (agro. Purpose) Net amount of finance up to actual cost of
tractor @ 18% Equity participation-minimum 10% period of finance up to 5
years repayable in quarterly or half yearly installments, as per choice of
borrower security through agricultural pass book system or registered mortgage
of immoveable property (rural or urban) minimum security 40 kanals
disbursement within 15 daysloans against pledge of gold/gold ornaments for
agriculture purposes (short term) on the directions of SBP, the bank is providing
micro-financing against gold/gold ornaments preferably for agricultural purposes
to non-members individuals on easy terms. The salient features are: loaning
facility provided for agricultural/personal needs/ purposes to any individual
against pledge of gold/ gold ornaments up to 60% of the value duly assessed by
their glistered shroof / Goldsmith. Period of advance is up to 6 months at mark-
up rate of 16%. Mark-up is payable at the end of each half year.
Branch Manager and Arco (Credit Committee) has a sanctioning power up to
Rs.30,000/-,Comprehensive Insurance of Net Value of Gold from any of
the approved insurance company on the panel of the Bank.
 
INFORMATION TECHNOLOGY LOAN:
As per directives of the State Bank of Pakistan, the Bank is extending micro-financing for
Promotion of Information Technology. The salient features are:
 Citizen  of  Pakistan  &  resident  of  Punjab  and  permanent  employee  of Govt.
Departments / Organizations (selected).Period of finance up to three years Limit of finance
up to Rs.25, 000/- @ 16% p.a. Repayable in 36 equal monthly installments Sanction of
Finance by the Branch Manager. 

Livestock Micro-Financing for Purchase of Meat & Milk

Cattle and Goat & Sheep (Short Term)

Live Stock Revolving Credit to Societies (Revolving Credit)

The net maximum amount of finance Rs.8, 00,000/- per society and Rs.1, 00,000/-
per borrower Margin money 10% of the purchase price of cattle Period of finance three years
@ mark-up of 13% p.a.

One time documentation for three years:

The society/beneficiary  entitled for any number of withdrawals and 
r e p a y m e n t s (multiple operation), within the limit during three
Years with annual clean up from the date of first withdrawal, on a date mutually settled.
Individuals The Net Maximum amount of finance Goat, Sheep & cattle Rs. 20,000/ per
borrower of two acres security, in case of one acre Rs. 1,00,000/ period of finance one year
mark-up rate: 15.80% repayment in half yearly or quarterly equal installments or culture and
within the one year as per choice of borrower in case of meat and Mitch cattle the security
double the value of net finance either in the shape of agriculture land through agriculture pass
book system or urban property through registered mortgage. However, the borrowers of rural
areas must be the owner of 1-2 acres of agriculture land. Case processing fee Rs 500/.

 During the 2004 the Bank signed

a Memorandum of Understanding with Livestock & Dairy
Development Department, Government of Punjab in presence of
the Chief Minister, Punjab. The scheme aims at extending loans to
farmers for the development of Livestock and dairy Development
projects in the Punjab. Under this arrangement, District Officer
(Livestock) would act as Focal person who would not only
provide feasibilities free of cost but would also provide animal
health coverage before and after the implementation of the
project. Both members of cooperative societies and individuals
can borrow funds from this scheme for specified projects.

 The salient features of this product are: -

 Cooperative Societies

 Net amount of finance, Rs.5 laces per borrower – 8 members can avail loan. Margin
money is 10%.

 Period of finance 5 years, recoverable in 10 equal half yearly installments

including mark-up accrued thereon. Rate of Mark-up is 13%.
  Case processing fee Rs.1, 000/-.

 Individuals

 Maximum amount Rs.5 laces in case of group of persons Rs.1million.

 Margin money 20%.

 Period of finance 5 years, recoverable in 10 equal half yearly installments

including mark-up accrued thereon.

 Rate of mark-up 13%.

 Case processing fee Rs.1, 000/-.

 Minim agriculture land requirement 5 acre per borrower valuing double

the a m o u n t o f   l o a n .   I n   c a s e s e c u r i t y   n o t s u f f i c i e n t ,   b o r r o w e r   c a n
give urban property. In case of blood relation, accumulate land of
5 acres of two borrowers is acceptable.

LOANS AGAINST DSCs / SSCs for Agriculture purposes:

The salient features are: -·
        
 Finance limit – Rs.1.00 lacs

 Mark-up rate – 16% p.a.

 Repayment period – 1 year.

 Security – lien mark on DSCs / SSCs

 Net Finance up-to 75% of face value of DSCs/SSCS

WOMEN COOPERATIVE SOCIETIES LOAN:

For the sake of supplementing the income of women for their economic uplift
and poverty alleviation, a new scheme has been recently launched.
The salient features of the policy are:
Finance limit – Rs.2.00 laces.
Mark-up rate is 11%, Repayment period is 3 years with 6 months grace period.
Security – mortgage of property rural or Urban
AUTO FINANCING LOAN:

Auto Financing (Medium / Long Term

This is the latest financial product. The salient features are: Eligibility criteria – Permanent
Govt. of Punjab employees and Autonomous Bodies and Financial Institutions having
good rating in BPS-16 & above or equivalent & above.
Finance limit – Rs.4 to 9 lacs as per entitlement at mark-up rate of 12%.Margin requirement –
10% of the value of vehicle Repayment period – 5 years through monthly installments
Security – joint registration of vehicle and lien mark on funds Rate of Markup 14% P.a

LOANS FOR OTHER SCHEMES:

The Bank is also providing loans to Non-Agriculture / industrial
societies, the biggest venture in industrial loaning is the Pakistan cycle
Industrial Cooperative society Ltd, the manufacturer of Rustam&Sohrab
Cycle / Motorcycle.

Staff House Building Loan (For Staff Only):

1. Eligibility:

You may apply for PPCBL Home Loan.

 If your age is between 23 and 60 years at the time of application (Subject to maximum
age of 65 at the time of maturity)
 If you are in continuous employment in a permanent position for the last 2
years or more OR 
 If you have existing 3 years (or more) of business or professional experience
 If your gross annual income is Rs: 240,000/-or more [Your spouse’s
income (up to50%) can also be combined with yours.
 If you require a financing requirement starting from at least Rs: 500,000/-

Y o u   m a y   a p p l y   f o r   P P C B L   H o m e   l o a n   f o r   a   m i n i m u m   p e r i o d 
o f   3   y e a r s   a n d a maximum repayment 20 years.

Salaried Persons:
 Maximum 48 times monthly gross income

 Latest salary certificate

 Certificate from the employer regarding leftover service

  Estimates and other related approved documents

 30% take home pay.  

Housing Loans for Business & Self-employed persons

 4 times the gross annual income

 Income Tax Returns

 Auditor Certificate

 Estimates and other related approved documents

2. Documents
Basic Documents:
 2 recent passport size photographs

 Copy of Computerized National Identity Card. (Original to be sho
w n   a t branch)

 Copies of complete chain of title documents of the property being offered

(If identified)

 Processing Fee Cheque favoring by PPCBL.

 Letter of Understanding.

Car/Motorcycle Loan (For Staff Only)

1. Benefit & Features

 Hassle-free processing
  Personalized service

 Low Down payment (as low as 10%)

 Flexible tenors - up to 5 years

 Competitive Insurance rates 

 Advance Booking Facility

 Early Settlement Option (Nominal Charges apply)

 Co-Borrower Facility

 No hidden charges

 Lowest down payment in town.

PPCBL believe in sharing the joy of its customers by giving them benefits, which are
aimed at making customer’s car buying experience an exciting event. Its highly trained
executives will take care of its financing requirements. The only thing you need to worry
about is choosing the car and its color. 

2. Eligibility
You may apply for PPCBL Car Loan to purchase a brand new car:

 Pakistani National Identity Card holder.

 Over 20 years of age (Maximum 60 years in case of salaried.

 Salaried, of Punjab Govt. Employees.

3. Documents
  2 recent passport size photographs.

 Copy of Computerized National Identity Card.

 Last six months bank statement

 Most recent Salary Slip/ Copy of Registration with 
R e s p e c t i v e   b o d y   ( i f   applicable)

 NTN certificate (in case of advance payments).

 Salary certificate (for salaried individual).

Promotion:
Promotion and Marketing strategies of PPCBL:
There are a number of marketing strategies of Punjab Provincial
C o o p e r a t i v e   B a n k Limited some of these strategies are listed below;

Crop Insurance:
The Benazir Credit Card Schemes and Crop Loan Insurance Schemes have also
been introduced for the benefit of cotton, rice and other crops growers. Crop insurance
Schemes have been considered an impractical dream by the insurance sector
for quite long, but innovative solutions designed by National Insurance have made it
a practical option. NICL and National Bank of Pakistan have prepared an Agricultural Loan
Insurance Policy properly supported and backed by the re-insurance arrangements
at reasonable competitive cost. Through this collaboration, agricultural
loans of more than Rs.30 billion have been provided insurance cover. Similarly, PPCBL has
also been provided the facility of Agricultural Insurance Cover.

Tractor Scheme:
The Tractor Scheme was launched to provide tractors to the farmers at a subsidized price.
A large number of tractors are to be distributed among t h e   f a r m e r s o n   v e r y l o w
i n t e r e s t   r a t e s .   T h e   P P C B L i s   s u p p l y i n g h i g h Efficiencyirrigation system to
farmers to improve agricultural activity in areas of scarce water. PPCBL
provides tractor to farmers that have 12.5 acres agricultural land. The recovery of loan is on
easy terms. The farmer shaves to pay back the loan in 8 years. The installment is semiannually which is
round about 50,000 rupees. In this way the farmers can easily pay back the amount.

Availability of Quality Seeds:

PPCBL decided to ensure the supply of quality seed, one of the most important inputs in crop
production, to have maximum yields in all
crops. As a result, production of almost all major crops, including wheat, rice, maize, gram,
mooing and pearl millet, rose significantly. A special project of improving vegetables seeds at local
level has also been initiated.

Agricultural Loans:
During 2008-2009, the Government earmarked Rs.250 billion, higher by20% over the preceding
year, for banks to finance the farming community. This amount for the current fiscal is Rs.260
billion for major and minor crops, orchards and forestry. Credit limit was increased
because of rising prices of all inputs including electricity. Crop loan insurance scheme was
also introduced to enhance the access of farmers to agricultural loans. Provision of
agricultural credit to farmers facilitated them to procure the
c o s t l y i n p u t s   i n   o r d e r   t o   e n s u r e   t h e   t a r g e t   p l a n t i n g a n d   p r o d u c t i o n   o f   vario
us crops. A new Agriculture Mode Village Program has been initiated in 26 villages under
the auspices of Punjab Provincial cooperative Bank Limited(PPCBL). The objective is to
organize the farming community at the village level ensuring farmers easy access to
agricultural credit.

PPCBL and Field Work:

One of the main marketing strategies of Punjab provincial Cooperative Bank Limited is the field work.
Through which the PPCBL officers visit the agricultural land and meet the people, in this
way they are able to know about the forming land and also about the people. And the people
too became conversant with t h e o f f i c e r s a n d i n t h i s w a y t h e y a r e a b l e t o k n o w
a b o u t t h e l e n d i n g schemes. PPCBL is also promoting Hajj and Umrah schemes.
 

Charges of Organization:

Pay Order
Issuance of pay order:- Rs.50/- (Flat)
1. For account holder Rs.100/-(Flat)Rs.25/- (Flat) from
2. For non-account holder student for payment of fee favoring
educational institution.
3. For Students
Issuance of duplicate Pay Rs.100/- (Flat)
order:- Rs.150/-(Flat)
1. For account holder
2. For non-account holder
Issuance of call deposit receipt:-
1. For account holder
2. For non-account holder Rs.100/- (Flat)
Rs.150/-(Flat)
(Opening commission) Annual
Business Up to Rs.50 (M) 0.40% per
Inland Letters of Credit quarter or Up to Rs.75(M) 0.35% part
thereof Up to Rs.100(M)
0.25% Above 100 (M) Negotiable
Minimum Rs.1,000/=

Bills:
Collection:

Documentary Bills 0.40% minimum Rs .50/- postage

and courier charges

Clean(including cheques/dividend  0.20% minimum Rs .50/- plus

warrants/bank drafts etc) postage and courier charges as
mentioned
Above
 For PPCBL on cheque own 0.15% minimum Rs .50/- plus
applicable postage and courier
charges

Purchase of bills, cheques etc. 0.25% minimum Rs .50/- plus

applicable postage and courier
Documentary Bills other than charges
thosedrawn against Letters of
Credit

0.40% minimum Rs .25/- plus

Clean Bills (trade cheques, bank
applicable postage and courier
draft etc.) charges

Lockers Charges:
Locker size Key deposit Annual Rent
Charges
Small Rs 4000/- Rs 2400/-per annum

Medium Rs 5000/- Rs 5000/-per annum

Large Rs 6000/- Rs 5000/-per annum

Place:
PPCBL covers small villages and rural areas of the Punjab. PPCBL has its branches in
approximately in every zone of Punjab. PPCBL has also its farmer customer’s services
societies throughout the Punjab in every district to provide better facilities to the farmers.

Farmers are visiting the PPCBL for the of lands loan. PPCBL societies are strategically
located to the every district of Punjab for the ease of farmers reach. PPCBLemployee’s
courteous and friendly staff is trained to handle customers from varying backgrounds and
different walks of lives. PPCBL Board of Directors designed to facilitate customers and
provide all the convenience under one roof.
Name of Zone No of Branches

Lahore 24

Gujranwala 18

Rawalpindi 17

Sargodha 17

Faisalabad 18

Bahawalpur 19

Multan 28

D.G.Khan 20

 Book keeping is proven to be a greater threat for Bank as there is danger of record loss.

 There is no availability of online record which can produces confusions

among loonies.

 Although the recovery ratio is round about 85% but it is only windowdressing and not

the actual one.

 There is no maintenance of duties by the staff.

 Their interest ratio is round about 9% per annum, which is very low from other
commercial banks.
 Chapter No: 4
FINANCIAL STATEMENT
ANALYSIS
Horizontal Analysis:
Horizontal Analysis Overview:
 Horizontal analysis is the comparison of historical financial information over a series
of reporting periods, or of the ratios derived from this financial information. The analysis is
most commonly a simple grouping of information that is sorted by period, but the numbers in
each succeeding period can also be expressed as a percentage of the amount in the baseline
year, with the baseline amount being listed as 100%.

A common problem with horizontal analysis is that the aggregation of information in

the financial statements may have changed over time, due to ongoing changes in the chart of
accounts, so that revenues, expenses, assets, or liabilities may shift between
different accounts and therefore appear to cause variances when comparing account balances
from one period to the next.

When conducting a horizontal analysis, it is useful to conduct the analysis for all of
the financial statements at the same time, so that you can see the complete impact of
operational results on a company's financial condition over the review period. For example,
in the two examples below, the income statement analysis shows a company having an
excellent second year, but the related balance sheet analysis shows that it is having trouble
funding growth, given the decline in cash, increase in accounts payable, and increase in debt.

Horizontal analysis of financial statements can be performed on any of the item in

the income statement, balance sheet and statement of cash flows. For example, this analysis
can be performed on revenues, cost of sales, expenses, assets, cash, equity and liabilities.
It can also be performed on ratios such as earnings per share (EPS), price earning ratio,
dividend payout, and other similar ratio.

Horizontal analysis can be performed in one of the following two different methods
i.e. absolute comparison or percentage comparison.

 Absolute Comparison:

One way of performing horizontal analysis is comparing the absolute currency

amounts of some items over the period of time. For example, cash in hand at the end of an
accounting period can be compared to other accounting periods. This method is helpful in
identifying the items which are changing the most.

 Percentage Comparison:

In the second method of horizontal analysis, percentage differences in certain items

are compared over a period of time. The absolute currency amounts are converted into the
percentages for the purpose of comparison. For example, a change in cash from $5,000 to
$5,500 will be reported as 10% increase in cash. It can also be reported as 110%, which
means that the cash is 110% of the cash at the end of previous accounting period. This
method is useful when comparing performance of two companies of different scale and size.
Horizontal analysis of PPCBL:

Punjab provincial cooperative bank

BLANCE SHEET

ASSETS 2009 2010

Rs ‘000’ Rs ‘000’

Cash balances with other treasury banks 115,827,868 115,442,360

Balances with other banks 28,405,564 30,389,664

 Lending to financial institutions 19,587,176 23,025,156

Investments 217,642,822 301,323,804

Advances 475,243,431 477,506,564

Operating fix assets 25,147,192 26,888,226

Deferred tax assets 3,062,271 6,952,66

Other assets 59,316,438 53,496,240

Total assets 944,232,762 1,035,024,680

LIABILITIES 2009 2010

Bills payable 10,621,169 8,006,631

Borrowing from financial institutions 45,278,138 20,103,591

Deposits & other accounts 726,464,825 832,151,888

Subordinated loans - -

Liabilities against assets of leasing 42,629 106,704

Deferred tax liabilities-net - -

Other liabilities 42,269,623 46,160,038

Total liabilities 824,676,384 906,528,852

Net assets 119,556,378 128,495,828

REPRESENTED BY 2009 2010

Share capital 10,763,702 13,454,628

Reserves 22,681,707 24,450,244
Un appropriated profit 61,346,510 65,857,43
 94,791,919 103,762,31
Surplus on revaluation of assets 24,764,459 24,733,518
119,556,378 128,495,828

INCOME STATEMENT

PARTICULARS 2009 2010

Mark-up/return/interest earned 77,944,697 88,472,134

Mark-up/return/interest expenses 39,489,649 45,250,476

Net mark-up/ interest income 38,458,048 43,221,65

Provisions against non performing 11,043,469 7,011,046

advances
Provision for/(reversal of) diminution in 605,629 2,954,678
the value of investment

Provision against off balance sheet 20,237 3,965

obligations

Bad debt written off directly - -

11,669,335 9,969,689

Net Mark-up/interest Income after 26,788,713 33,251,969

provisions

Non-Mark-up/interest Income

Fee, commission and brokerage income 8,930,391 9,631,579

Dividend income 1,920,336 1,099,493

Income from dealing in foreign 3,028,165 2,211,139

currencies

Gain on sale and redemption of 4,591,894 2,512,363

securities-net

Unrealized/(loss) on revaluation of 2,355 6,730

investments

classified as held-for-trading

Other income 552,216 2,171,336

Total Non-Mark-up/interest Income 19,025,357 17,632,640

45,814,070 50,884,609

Non-Mark-up/interest expenses

Administrative expenses 22,571,470 26,202,577

 Other provisions/write offs 620,780 148,026

Other charges 321,647 118,887

Total Non-Mark-up/interest expenses 23,513,897 26,469,490

22,300,173 24,415,119

Extraordinary/unusual items 22,300,173 24,415,119

Profit Before Taxation

Taxation-current 9,221,513 9,835,048

-prior years - -

-deferred (999,904) (2,043,887)

4,088,327 6,851,905

Profit After Taxation 18,211,846 17,563,214

Un-appropriated profit brought forward 52,456,204 60,696,510

Transfer from surplus on revaluation of 123,934 117,738

fix assets

Profit available for appropriation 7,0791,984 78,377,462

RATIO ANALYSIS

Ratio analysis enables the analyst to compare items on a single financial statement or to
examine the relationships between items on two financial statements. After calculating ratios
for each year's financial data, the analyst can then examine trends for the company across
years. Since ratios adjust for size, using this analytical tool facilitates intercompany as well as
intercompany comparisons. Ratios are often classified using the following terms: profitability
ratios (also known as operating ratios), liquidity ratios, and solvency ratios. Profitability
ratios are gauges of the company's operating success for a given period of time. Liquidity
ratios are measures of the short-term ability of the company to pay its debts when they come
due and to meet unexpected needs for cash. Solvency ratios indicate the ability of the
company to meet its long-term obligations on a continuing basis and thus to survive over a
long period of time. Financial ratios allow for comparison:

 Between companies
 Between industries
 Between different time periods for one company
 Between a single company and its industry average

PROFITABILITY RATIOS

The continued viability of any bank depends on its ability to earn an appropriate return on its
assets and capital. Good earnings performance enables a bank to fund its operations, remain
competitive in the market and increase or decrease in market funds. Profitability ratios relate
profit to sales and investments. These ratios indicate the firm’s overall effectiveness of

Operations and give us idea how well firm utilized its resources in generating profit and
shareholder value.

: GROSS PROFIT MARGIN RATIO

Gross profit margin ratio is used to assess the profitability of a Bank's core activities. Gross
profit margin indicates the relationship between gross profit and interest earned. A high gross
profit margin indicates that a Bank can make a reasonable profit.

Formula = Gross Profit / Interest earned (Revenue)

Year   2019 2020

Ratio % 48.0 48.85

 5

ANALYSIS

The both Years have been outstanding year with the bank recording the higher profit .The
Punjab provincial cooperative bank wide range of product offering, large branch network and
committed workforce are some of fundamental strengths that enabled PPCBL to achieve
exceptional in a very competitive market. The gross profit in 2010 is higher than previous
year 2009.

NET PROFIT MARGIN RATIO

Net profit margin measures the percentage of revenue remaining after all cost and expenses,
including interest and taxes have been deducted.

Formula = Net Profit after Taxes / Interest earned

Year   2019 2020

 Ratio % 22.5 19.85
3

ANALYSIS

The net profit margin has decreased as compared to previous year.The net profit margin is on
its lower level at the end of 2010 as it indicates a percentage of 19.85%. The primary reason
of this decline is current global economic conditions and current political crisis in Pakistan.

ASSETS TURNOVER

This ratio is useful to determine the amount of revenue that is generated from each Rupee of
assets. The Banks with low profit margins tend to have high asset turnover, those with high
profit margins have low asset turnover.
Formula = Revenue/ Total Assets

Year 2019 2020

Rati 0.082 0.085

o

ANALYSIS

The year 2009 represents a ratio of 0.082, lower than 2010. The Punjab provincial
cooperative bank assets turnover in 2010 is 0.085, peak ratio among all year
RETURN ON CAPITAL FUND

This ratio relates the net profits to the amount of capital funds that have been employed in
making that profit.

Formula = Net markup received / Capital Funds

Yea     2019 2020

r

Ratio 0.39 0.41

ANALYSIS

The above given ratios suggest that the profitability of the bank has a mixed trend during
previous years. However when we look at current years we see an increasing trend, indicating
more profitable operations of the bank. It was in the year 2009(.39) and has increased in
2010as the ratio was 0.41.
: RETURN ON INVESTMENT

This ratio indicates the profit earned by the bank on the resources employed.

Formula = Net income after taxes / Total Assets

Year 2019 2020

Rati 0.018 0.017

o

ANALYSIS

There was a decrease in the utilization of the resources showing 0.018 in year 2009 and
decreasing to 0.017 in the year 2010.

RETURN ON DEPOSITS
This ratio indicates to what extent deposits which represent funds mobilization on the part of
the bank contribute towards income generation

Formula = Net income before taxes / Total Deposits

Year 2019 2020

Ratio 0.0292 0.0293

ANALYSIS

During all previous years the return on deposits ratio of Punjab Provincial cooperative bank
limitedshows a mix trend. The year 2010 (0.0292) was the good year for bank in terms of its
funds mobilization. Although the ratio was decreasing in 2010 (0.0293), indicating Bank is
more keen to kept deposits and a change in policy of the Bank regarding its funds m

ADVANCES TO DEPOSIT RATIO

It demonstrate the degree to which bank has already used up its available resources to
accommodate the credit needs of its customers.
Formula = Advances / Total Deposits

Year     2019 2020

Ratio% 65.32 57.40

ANALYSIS

This ratio, a comparison of funds generation and its funds mobilization, indicates the total
loans sanctioned by the bank in relation to total amount of money deposited with the bank,
stands higher in 2009 ( 65.32%). This shows that the bank has greater potential to advance
additional loans.
During all other years the ratio is quite satisfactory representing Punjab Provincial
Cooperative Bank credit management decisions. In year 2010 the ratio is decreasing and is
57.40%.

Debt Ratios

These ratios give users a general idea of the Banks overall debt load as well as its mix of
equity and debt. Debt ratios can be used to determine the overall level of financial risk a
company and its shareholders face. In general, the greater the amount of debt held by a
company the greater the financial risk of bankruptcy

The Debt to Equity Ratio

The debt-equity ratio compares a company's total liabilities to its total shareholder’s equity.
This is a measurement of how much suppliers, lenders, creditors and obligors have
committed to the company versus what the shareholders have committed.

To a large degree, the debt-equity ratio provides another vantage point on a company's
leverage position, in this case, comparing total liabilities to shareholders' equity, as opposed
to total assets in the debt ratio. Similar to the debt ratio, a lower the percentage means that a
company is using less leverage and has a stronger equity position.

Formula = Total Liabilities/ Total Shareholder’s equity

Year 201 2020

9

Ratio 8.77 8.74

 Debt To Equity
8.775
8.77
8.765
8.76
8.755 Debt To Equity
8.75
8.745
8.74
8.735
8.73
8.725
2009 2010

Analysis

The debt to equity ratio of Punjab Provincial Cooperative Bankshows a ratio of 87.70 % in
2009. The ratio is decreased to 87.40% in the year 2010.The decreasing trend in the ratio
shows better and improved conditions.

Capital Adequacy Ratios

Capital Funds to Total Assets

This ratio indicates the extent of the funds employed by the bank in the total resources as
shown in the balance sheet.

Formula = Capital Funds / Total Assets

Year 2019 2020

Rati 0.09 0.100

o

Analysis

The Punjab Provincial Cooperative Bank Capital funds to Total Assets ratio is increased
during years. The ratio is 0.09 in 2009, representing lowest. The ratio is increased in 2010 as
the graph shows ratios of as well.
Operating Performance Ratios

Each of these ratios have differing inputs and measure different segments of a company's
overall operational performance, but the ratios do give users insight into the company's
performance and management during the period being measured.

These ratios look at how well a company turns its assets into revenue as well as how
efficiently a company converts its sales into cash. Basically, these ratios look at how
efficiently and effectively a company is using its resources to generate sales and increase
shareholder value. In general, the better these ratios are, the better it is for shareholders.

In this section, we'll look at the fixed-asset turnover ratio and the sales/revenue per employee
ratio, which look at how well the company uses its fixed assets and employees to generate
sales.

FIXED ASSETS TURNOVER

This ratio is a rough measure of the productivity of a company's fixed assets (property, plant
and equipment etc) with respect to generating revenue. For most companies, their investment
in fixed assets represents the single largest component of their total assets. This annual
turnover ratio is designed to reflect a company's efficiency in managing these significant
assets.

Formula = Revenue/ Operating Fixed Assets

Year 2019 2020

Ratio % 3.09 3.29

ANALYSIS

The fixed assets turnover ratio of Punjab Provincial Cooperative Bank has an increasing
trend. The ratio increases 3.09 (2009) to 3.29 (2010). The year 2010 represents highest fixed
assets turnover ratio for Punjab Provincial Cooperative Bank. The bank’s efficiency to utilize
these assets has been decreased in 2009.

SALES OR REVENUE PER EMPLOYEE

As a gauge of personnel productivity, this indicator simply measures the amount of Rupees
sales or revenue, generated per employee. The higher the Rupee figures the better.
Formula = Revenue/ Number of Employees

Year 2019 2020

Ratio 4797.4 5375.96

Revenue Per Employee

5500
5400
5300
5200
5100 Revenue Per Employee
5000
4900
4800
4700
4600
4500
2009 2010

ANALYSIS

The ratio has been showing an increasing trend by 4797.4 in 2009 and in 2010 that was 5375
an increasing trend

Chapter No:5
 TRAINING PROGRAM
7.1: WORKING EXPERIENCE DURING INTERNSHIP

My internship provided me a great opportunity to learn & experience different

banking practices. During the three months of my internship I got a good chance to seewhat
the actual banking is regarding the operations performed in the back office and in the main
branch.

1stand 2ndweek:
During the first and second week of my internship, I learnt these things
atthe account opening/maintenance department:

 To open the account

 To set the account no. stamp

 To fill the deposit slip

 To issue the cheque book 

To Open the Account:

 
During my internship, I opened two types of account;

 single account

 Joint account

1) Single Account:
I monitored three types of accounts under this head along
withdocumentation required for these accounts.

 Account of a literate person

 Account of a salaried person

 Account of an illiterate person

2) Joint Account:
 Besides opening this account I  was provided with
the followinginformation regarding JOINT ACCOUNT by manager operations.

How a joint account is affected by the death of one joint account holder:

3) Partnership Account:
 I did not open this account personally, but I know the following regardingPARTNERSHIP
ACCOUNT.

Documents needed to open this account

Moreover the operation manager told me these thingsregarding the partnership account:

Death of a partner:

Admission of new partner Documents required in case of a new partner 

3rdand 4thWeek:
My 3rdand 4thweeks were in the cash cabin and I performed following work there:

 To make the online transfer voucher via cash

 To post these vouchers

 To issue a cash

 To post the vouchers for this department

 Study of cash book

 Study of cash position book

 Visit to strong room

 How the cash is maintained in strong room

5th and 6thWeek:

During the 5th and 6thweeks, I worked with the operation manager and learnt about his
working.

How he checks the daily vouchers related to transfer, cash and clearance
departments
 I have some idea about the opening & closing of bank but not have a
through grip on it.

How the manager ops authorize various transactions

I also have some idea about the DAILY GENERALLEDGER REPORT

7th, 8th and 9thWeeks:

During my three weeks I work in the Admin, Establishment and HR section of HR
division.

In these sections I learnt the following things.

 Maintaining the employee personal data.

 Correspondence regarding employee issues.

 Maintaining the employee salary.

 Issue the employee salary.

 Issue the Show-causes to employees.

 Receiving and posting CV’s came for interviews.

 Shortlisting of CV’s and Calling for interview.

 Recruitment of new employees.

 Collecting and maintaining the personal files of new employees.

 Conducting TNA and arranging training programs for employees.

 Any other assignment assigned by the Managers.

10th,11th and 12th Weeks:

During my three weeks I work in the Staff Deposit Loans (SDL) Section of HR
division.

In this section I learnt the following things.

 Posting vouchers.

 Maintaining the Cash Securities of Staff.

  Posting in ledgers

 Maintaining the employee Provident Fund.

 Sanctioning loans to employees Against the following:

 Salary-Finance
 Car-Finance
 Motorcycle-Finance
 Wheat Finance
 House Building-Finance
 Provident Fund-Finance

 Maintaining the documents deposited by employees for their loans.

 Making payments to employees, whose loans are sanctioned

 Making payments to State Life for the premium of employees insurance against
employee Provident Fund.

 Making statements for audit department.

Department &Affairs Details:

Treasury Department:

1. Establish and maintain sound accounting and internal control

discipline / system within the department to ensure adequate,
effective and prescribed by the statutory bodies as well as the
bank’s internal policies.
2. Supervise the process for timely preparation of final and
i n t e r i m   f i n a n c i a l statements in accordance with the applicable financial reporting
framework and to present these financial statements to the Audit Committee/Board for
approval and onward publication and submission to the shareholders and relevant statutory
bodies.

3. Develop and supervise implementation of adequate systems and procedures to generate

and submit accurate and timely information to SBP in accordance with the
applicable regulation. 
4. Strategic business plans, budgets and forecasts and their submission to
theBoard / Board Committee, Senior Management and the reporting of
periodicvariations to the Board / Senior Management for effective monitoring at their end.
5. Provide inputs on the capital structure of the bank and initiating / coordinatingvarious
capital rising / restructuring initiatives along with seeking necessaryregulatory approvals.
6. Establish / direct tax strategies and accounting policies / procedures for
thebank and its subsidiaries.
7. Attend Board/Audit Committee meetings as Chief Financial
Officer, as required by the applicable regulations, Bank’s internal
policies or established practices.
8. Management, accounting, taxation and regulatory reporting.
9. To exercise independent check over the financial and
r e g u l a t o r y   r e p o r t i n g processes and communicating identified exceptions to
the concerned quarter  within the bank for resolution.

10. Perform other related functions that may be assigned by the Board / CEO fromtime to
time.
11. Responsible for maintaining the Banks Internal Control Standards, includingtimely
implementation of internal and external audit points.
1 2 .   E n s u r e   t h a t   a l l   t r a n s a c t i o n s   c o m p l y   w i t h   P r u d e n t i a l   R e g u l a t i o n s , 
L a w s   & Circulars issued by the State Bank of Pakistan.
13. Check and improve the operation of internal control system to  identify
weak links and establish the appropriate systems to prevent/eliminate or reduce therisks
arising from the operations.
14. To identify areas to improve the operational efficiency in the bank.

15. To conduct follow up reviews to ensure continued implementation of recommendations

made by SBP and auditors.

Audit Department:

1. Execute risk assessment of various functions.
2. Develop systems and review objectives, procedures, techniques and reports for the internal
audit services.
3. Communicate and coordinate with other departments
f o r   c o m p l i a n c e   o f   established policies, plans, procedures and rules.
4. Initiate comprehensive audit programs for the institute concentrating on
highr i s k a r e a s i n t e r m s o f v a l u e o f a s s e t s , a d e q u a c y o f c o n t r o l s ,
l e v e l o f s t a f f   assigned and prior incident of breakdown of internal controls.
5. Implement internal audit programs in order that all aspects of transactions
areaudited and submit report to the Manger Internal Audit.
6. Conduct audit to review and appraise the soundness, adequacy and applicationof
accounting, financial and operational controls at Head Office as well as
atRegional offices.
7. Undertake special audit at the directive of the Competent Authority and reportregularly
with regard to progress of audit activities.
8. Undertake audit to ensure that fund allocations for projects are
appropriatelyutilized  and ensure that  any budget variations  are approved
by the competent authority.
9. Prepare reports containing observations, comments and recommen
d a t i o n s based on carried out work and submit the reports to the Competent Authority.
10. Perform internal audit activities/functions in accordance with the
approvedinternal audit plan.
"Internal auditing is an independent, objective assurance and consulting activity designed to
add value and improve an organization’s operations. It helps an organization accomplish its
objectives by bringing a systematic, disciplined approach to evaluate and improve the
effectiveness of risk management, control, and governance processes."

Major roles and responsibilities of internal audit function are summarized as below:
 Evaluates and provides reasonable assurance that risk management, control, and
governance systems are functioning as intended and will enable the organization’s
objectives and goals to be met.
 Reports risk management issues and internal controls deficiencies identified directly
to the audit committee and providerecommendations for improving the organization’s
operations, in terms of both efficient and effective performance.
 Evaluates information security and associated risk exposures
 Evaluates regulatory compliance program with consultation from legal counsel
 Evaluates the organization’s readiness in case of business interruption
 Maintains open communication with management and the audit committee
 Teams with other internal and external resources as appropriate
 Engages in continuous education and staff development
 Provides support to the company's anti-fraud programs.
Human Resource Department:

1. Plan, develop and implement strategy for HR management and

development(including recruitment and selection policy / practices, discipline,
grievance, counseling, pay and conditions, contracts, training, and
development, succession planning, morale and motivation, culture
development, performance appraisals and quality management issues-add
others if relevant).
2. Establish and maintain appropriate systems for measuring necessary aspects of HR
development.
3. Monitor, measure and report on HR  issues, opportunities and
development plans and achievements within agreed formats and timescales.
4. Manage and develop  direct reporting staff.
5. Manage and control departmental expenditure within agreed budgets.
6. Liaise with other functional / departmental managers so as to understand
allnecessary aspects and needs of HR development, and to ensure they are fullyinformed of
HR objectives, purposes and achievements.
7. Maintain awareness and knowledge of contemporary HR development
theoryand methods and provide suitable Interpretation to directors, managers
and staff within the organization.
8. Contribute to the evaluation and development of HR strategy and performancein
cooperation with the executives’ team.
9. Ensure activities meet with and integrate with organizational requirements
for q u a l i t y   m a n a g e m e n t ,   h e a l t h   a n d   s a f e t y ,
l e g a l   s t i p u l a t i o n s ,   e n v i r o n m e n t a l policies and general duty of care.

The bank has won repute in the field of agriculture, industrial loan and for the daily life
banking. It has been achieved only due to the proper and exact functionality of the Human
Resource Department. The Head of the Human Resource Department is the Head of HR
division and his team comprises of Dy, Heads and managers of the different sections. The
Human Resource Department may advice the administration and the board of directors on
special issues of the bank and then it offers services in order to accomplish the task. The
Human Resources are the ultimate deciders provided by the Human Resource Department. It
not only gives advice, offers services but also control the policies of the administration.

RECRUITMENT:
The department first determines the need of employees to be hired .The post against each
vacancy is advertised and then applications are invited from the applicants. If there is a post
of manager cadre, the general manager personally is the interviewer of the interviewees along
with his team.
TRAINING:
Then the qualified candidates undergo a training period under the banner of
Human Resource Department .There are co-operative training college at
Faisalabad and Bahawalpur Districts .Then the specified persons are appointed against each
specified post so the best results are expected and hence the performance and goodwill of the
bank is increased.

TRANSFER:
Human Resource Department of the bank also deals with the transfer of the
employees because the Human Resource Department knows the demands of

the job and the right person is employed over the right place by transferring
him to that post.

Health and safety matters are also handled by the Human Resource Department in the bank.
As there are no apparent dangers to the employees and customers, hence it is the
responsibility of the Human Resource Department to see through the matter.

EVALUATION:
The employees are then properly evaluated by different evaluation criteria and procedures in
order to motivate them and to enhance the performance.

The job appraisal system comprises of different questionnaire depending upon which the
whole system is forwarded.

UNION:
The union plays an essential part for the labor management relation .It bargains with the
management in the light of the demands of the employees.

It is the responsibility of the Human Resource Department which holds the formal talks and
the negotiations between the parties.

Human Resources Department is also responsible for the dealing with other
organizations running the same business.

Discipline and discharge is the necessity of each organization and it is

maintained by the Human Resource Department of the bank.

If an employee is creating problems for the administration for nothing, he may be warned and
depending upon the severity of the matter and allegation he may be suspended and even
terminated.
Work Place Training:
The work place training is the key factor of the policies of the Human
Resources Department .As the bank is public dealing entity so the work place training is the
integral factor for the good will and the status of the policies and services of the bank.

REFRESHING COURSES:
The refreshing courses enhance the potential capabilities of the staff and the
performance as well. The refreshing courses are conducted by different
financial institutions and are attended by the staff members on the
recommendations and behalf of the HR Department Refreshing courses are for the
managerial and clerical staff. So they are equally and firmly evaluated and enhancement of
their capabilities is achieved.

Pay Packages:
The packages are also determined by the Human Resources Department. These are
determined on the basis of performance, ACR, qualification and seniority.

It has comparatively low pay packages yet good ones.

The managerial posts are filled by the three methods by the Human Resource Department.

1)Direct
2)Graduate
3)Non-graduate

The promotions are on the seniority cum fitness basis .So the qualified and the efficient
workers are supposed to come up to the top.

Human Resource Department also deals with the retention and firing of the
employees.In case of deceased employee, one of his children gets the job in the
bank .According to qualification and skills it ensures the employee benefits.
More over the Human Resource Department also cares for the old age benefits of the
employees .It is obvious that the Human resources Department is of key importance and is
playing a complementary role in the development and promotion of the bank.

HUMAN RESOURCE PLANNING:

Another new function that has emerged in recent years in human resource planning (also)
called manpower planning). Sometimes a specific person
or office has this as its primary responsibility; more commonly the responsibilities are shared
by several people within the corporate personnel unit.

Human resource planning is the process by which is a firm insures that it has the right
number of qualified persons available at the proper times, programming jobs that are useful
to the organization, and which provide satisfaction for the individuals involved.

The principal elements involved in human resources planning are as follows:

(1) Goals and plans of organization;

(2) Current human resource situation including skills inventory;
(3) Human resource forecast including comparison of projected future demand for employees
with projected supply;
(4) Designing programs to implement the plans; and
(5) Audit and adjustment.

EQUAL EMPLOYMENT OPPORTUNITY:

Very commonly the chief personnel executive in a company bears the major
responsibility for insuring that the organization complies with the various equal employment
opportunity laws and regulations.

She or he often delegates the day-to-day detailed administration to someone within the HR
department who either specializes in this field of work or who performs these duties along
with others department such as the employment function.

Usually the chief executive officer (CEO) of a company, whether

she or he should be called the chairman of the board or the president, plays a key role in the
formulation and implementation of equal employment policy.

PERSONNEL INFORMATION SYSTEM:

Today, many organizations have staffs of people trained in mathematical analysis, computers,
and management information systems. Some companies have applied these capabilities to
personnel work. Among the applications have been human resources planning, skills
inventories, employee benefits analysis, and productivity studies.

INFORMATION TECHNOLOGY:
The information system is the core of the operations of the each and every
organization. If helps in the policy formulation and the running of the business affairs
properly by providing the 1st hand and accurate information.
The whole Human Resource Department functionality depends upon the information system.
Better the information system, better the Human Resource Department.

The Punjab cooperative bank has good information system and is serving the
Human Resource Department bitterly and efficiently and effectively.
Administration:
1. To manage operations and formulate business strategy to support its growth inline with the
corporate goals and targets.

2. To design and implement business development plans in line with bank’s longterm strategy

and to meet annual plans.

3. To transform the bank’s franchise in Pakistan into a profitable operations.

4. To maintain overall high operational standards.

5. To source, develop and motivate staff to maintain high

degree of staff productivity, retention and to develop a
professional team of international bank’s quality.

6. To strengthen the existing relationship with the corporate, and to bring to
our books new business relationship of multinational companies and rated domestic
companies.

7. To  introduce  new  products  to  improve  the  business  size  of  Pakistan operations.

8. To expand business in Pakistan through the existing branches

a s   w e l l   a s opening new branches in the locations having potential for banking business.

9. To maintain profitable and efficient operations of all the branches in Pakistan.

10. To maintain strong and close liaison with head office and to present to
theboard and the management update on the business development.

Credit Risk Management & Credit Administration D
e p a r t m e n t (CRMD & CAD):
1. Manage the credit administration function and coordinate with other functional in charges
for ensuring smooth execution of day-to-day activities in an effective and efficient manner.
2. Check documentation of the approved loan applications ensuring 
that the approval is sanctioned by the designated official within
prescribed limits delegated by the Board or refer the case to the
competent authority for further processing.
3. Check documents submitted along with the credit proposal of significant loans to
authenticate their validity for safeguarding Bank’s interests against future
default by the borrower by recovering the loan amount through liquidating thecollaterals.
4. Ensure that all legal documentation is submitted by
t h e   a p p l i c a n t , a r r a n g e proper registration of collaterals, verify and
physically authenticate the loan security quoted in the credit proposal by the applicant,
engage valuation firms for assessing fair value of the assets being mortgaged
before approving the loan application.
5. Coordinate with legal function in obtaining legal opinion as and when required to ensure
the authenticity of the borrowing party as well as the credit to be e x t e n d e d
in case of significant loans, and facilitate the legal advisor in all
possible ways to help in protecting the interests of the Bank.
6. Ensure compliance of the policies and procedures in disbursing the loans duly approved by
the credit committee / competent authority, check the disbursement schedule and
communicate the same to the concerned section for crediting the approved amount into the
respective party’s account as per agreed schedule.
7. Ensure safekeeping of all the documents related to the approved loan i.e.
loan application, collaterals / securities documents submitted by the borrower in the vault
after recording of the particulars in the respective vault register.
8. Constantly monitor activities after the disbursement of the loan, to ensure
that adequate security margins are maintained till the loan is recovered, and
refer to immediate supervisor in case security margins fall short of the desired level, so that
necessary action can be taken.
9. Follow-up with the borrowers for timely repayment of the loans, classify
the o v e r d u e c a s e s a s p e r t h e l a i d d o w n p o l i c i e s o f t h e B a n k a n d
r e p o r t d e f a u l t cases for provisioning and initiation of legal action against the defaulters.
10. Carry out work in accordance with the instructions of the competent authority and
established guidelines and procedures of the Bank and provide periodic
reports / information to the management in an effective and efficient
manner to facilitate them in decision-making.
11. Design the risk management framework based on the bank’s requirements,
dictated by the size and complexity of business, risk philosophy, market
perception and the existing level of capital.
12. Put in place proper systems for mitigating the deficiencies.
13. Review, assessment /  analysis and recommend / jointly approve of all
retail /corporate applications.
14. Ensure perfection of all documentation requirements and proper maintenanceof security
documents for all credit files.
15.To manage and co-ordinate Bank’s credit control activities
across all branches, ensuring value for money by maximizing
income cash flows minimizing losses through bad debts. Establish
and maintain best practice credit control techniques across the
bank.
16. To establish and maintain an effective credit control function and
creditcontrol processes across the Bank, through the management and out
postedstaff in different branches.
17. To manage and develop all staff within area of responsibility, in line
withagreed policies and procedures. As part of this to undertake an annualAppraisal
review, and identify and address own and team members training needs.
18. To lead on the development, documentation and implementation of a credit control
framework for corporate clients and regular customers, including, where appropriate, credit
checks, a dunning letters cycle and escalated reminder processes, sanctions management,
legal recovery processes, utilization of debt collectors and debt factoring.
19. To advise and support the other internal departments in effective credit controlpractices in
relation to clients and other charges, including the implementationof  billing procedures in to
the appropriate ledgers.

20. To establish credit control targets for clients, to monitor

p r o g r e s s a n d t a k e corrective action where necessary to minimize variances from targets
set.
21. To produce regular and accurate debt and credit control information for
senior management. Analyze debtor information to identify and respond trends andchanges
in funding regimes to ensure a focused approach to collection.
22.  To draft policies and procedures in relation to credit control and ensure that theyare
communicated appropriately across the Bank and implemented by the credit
control team.
 
23. To attend meetings and committees as appropriate to discuss
a n d p r e s e n t o n credit control activities.

BUSINESS DEVELOPMENT DEPARTMENT:

1. To manage operations and formulate business strategy to support its growth in line with the
corporate goals and targets.

2. To design and implement business development plans in line with bank’s long term

strategy and to meet the targets of annual plans.

3. To transform the bank’s into profitable operations.

4. To maintain overall high operational standards.

5. To secure, develop and motivate staff to maintain high

degree of staff productivity, retention and to develop a
professional team of international bank’s quality.
6. To introduce innovative banking suitable to the present market conditions and profitable to
the bank. 

7. To introduce new products of Assets & Liabilities to improve the business size/

profitability.

8. To expand business through the existing branches as well as

o p e n i n g n e w branches in the locations having potential for banking business.

9. To maintain profitable and efficient operations of all the branches.

10. To maintain strong and close liaison with Authorities and to update the board and the
management on the business development.

Retail Banking:
1. Plan, organize, direct and control retail banking activities and resources inorder to meet
retail banking objectives.

2. Assess market conditions, define, recommend, implement and  monitor

retailbanking strategy in order to gain and sustain the bank’s competitive edge andresults.

3. Review control the branches operating costs within the budget in

o r d e r t o maintain cost control.

4. Assess, analyze, define, recommend implement and follow up market i n t e l l i g e n c e ,

and marketing plans in order to meet retail banking
s t r a t e g i c objectives.

5. Identify customer needs initiate action and follow up in 
o r d e r   t o   m e e t customer expectations.

6. Identify training needs recommend guide rotate monitor and

follow up in order to improve staff competencies.

7. Direct and follow up with Head Operations on

implementing of aid it comments in order to avoid repeated
irregularities. Guide and direct Divisional/

Zonal Head to monitor control and follow up classified

accounts in order to avoid new NPL’s and improves
profitability.

Information Technology (I.T):

1. Lead the IT department's operational and strategic planning, includingfostering innovation,
planning projects and organizing and negotiating the allocation of resources.
2. Manage the deployment, monitoring, maintenance, development, upgrade andsupport of all
IT systems, including telecommunications, servers, PCs,
operating systems, hardware, software, peripherals and office automation equipment.
3. Processing and appraisement of IT Proposal.
4. Can attend to Bank’s internal significant issues, State Bank queries and
other Regulatory bodies.
5. Analyze MIS statement.
6. Benchmark, analyze, report on and make recommendations for the
improvement and growth of the IT infrastructure and IT systems.
7. Oversee provision of end-user services, including help desk and
technical support services.
8. Work with stakeholders to define business and systems requirements for
newtechnology implementations.
9. Keep current with the  latest technologies.
10. Manage financial aspects of IT department, including purchasing, budgeting and budget
review.
11. Develop business case justifications and cost/benefit analyses for IT spendingand
initiatives.
12. Develop and implement all IT policies and procedures, including those
for architecture, security, and disaster recovery, standards, purchasing and serviceprovision.
13. Develop requests for proposal.
14. Negotiate and administer vendor, Outsource and consultant
contracts and service agreements. 
15. Practice asset management for IT hardware, software and equipment.
16. Establish and maintain regular written and in-person communications with
theorganization's executives, department heads and end users regarding pertinentIT activities.

Operations:

1. Ensure that the business targets assigned are met and exceeds.

2. Marketing of liability products and other asset products of the bank as well.
3. Advice Business Development Officers regarding account opening for client
and all related activities (Branch Involvement).
4. To ensure that all KYC regulations are observed in account
o p e n i n g .   ( B r   Support).
5. To ensure all audit procedures are followed.
6. Relationship Management of assigned accounts.
7. Cross selling products in SME and Corporate segments.

8. Account reactivation and account closing for their clients. (Special)

9. Courtesy call / visit of existing customers.

10. Preparation of Daily visit report.

11. Handling of customer / non-customer queries on phone / face-to-face.

12. To maintain superior and sustained service standards.

13. Timely attendance to customer complaints / acknowledgments.

14. Responsible for overall Business Development Officers activities.

SAM (Special Asset Management):

1. Responsible for the overall functioning of the Special Assets Management.

2. Responsible for formulation of strategy for the Group and setting direction for reducing
NPLs of the bank, through negotiations or legal interventions.

3. Responsible for regulatory reporting to SBP and other Government Agencies.

4. To provide leadership, motivation and opportunities for development for
theGroup.

5. Responsible for interface between the group and the senior management
for day to day development and over all targets given to the Group.
6. To manage recoveries  from defaulters / NPLs.

7. To formulate, implement and monitor remedial strategy for recovery/

reduction of non-performing credit portfolio.

8. To supervise collections of NPLs from customers by negotiation,

legal intervention and out of court settlements.

9. To conduct negotiations with customers for expediting repayments and

alternative repayment schedule.

10. To identify training and development needs of team members and

ensuresongoing capability development.
11. Presentation of annual budget of the group to senior management for approval.

12. To evaluate performance of team members and provides feedbac
k   o n   a n d ongoing basis. Coach team members and ensures that they are
motivated toperform effectively.

Legal:

1. To provide an optimal support to the Head Legal Affairs in dealing with
andresponding legal affairs of the organization.

2. assistingthe Head in rendering legal opinions regarding issues referred by thebank’s senior

management;

3. Rendering  legal  opinions  itself  regarding  issues  referred  by  the  filed management.
4. Providing guidance to the Manager, Senior Officer/Officers in rendering
legalopinions regarding issues referred by the filed management.
 
5. Drafting and Vetting of agreements / contracts for the bank, in context of
thebank’s day to day basis third parties’ contractual relationship.
6. Rendering legal opinions as to acceptability of collaterals offered against
thebank’s credits/advances based on in-depth scrutiny of collaterals titledocuments.
7. Scrutiny of legal documentation pertaining to the bank’s credits/advances.
8. Scrutiny of security documents for Consortium Financing & Consumer.
9. Financing; and suggesting changes to ensure a sound legal standing for
thebank.
10. Analyses of discrepancies and loopholes in security documents to strengthenfinance
facilities extended by the bank.
11. Advising Risk Management segment in farming policies for proper securitization
structure.
12. Providing legal support in development of new banking products for the
bank.Product structuring  with regards to legal aspects and drafting of relevanta
greements/documents.
13. Maintenance of records and follow up of all cases filed against the bank
for recovery, declaration, writ petition and rent cases;
14. Visiting the courts to gets information on proceedings to maintain all records on court
cases involving the Bank;
15. supporting the field staff in negotiating out of court settlements
w i t h t h e customer and advises on initiating a legal course of action;
16. Execution of legal audits of bank's properties and advising rectification, whenrequired;

17. Examination of cases related to complex legal issues 
such as opening of various accounts (Corporate Partnership, Trust
,   C o m p a n i e s ,   f u n d s ,   Z a k a t Committee, Foreign Currency etc.)

18. Consolidation of cases of contingent liability for reporting to Bank's Auditorsfor Balance
Sheet;

19. Recommending legal retainers and panel advocates to the Division Head
bytaking inputs from the field executives.

20. Dealing with cases against the bank, examining property documents,evaluation of
collaterals for loan disbursement, observing court proceedingsand assisting
field staff in complying with notices received from various government
agencies/authorities.

21. Mainly, Job Purpose of Unit Head is to provide an optimal support to the HeadLegal
Affairs in dealing with and responding legal affairs of the organization& to provide
supervisory guidance/ assistance to the Manager, S. Officer & Officer Legal
Affairs under the guidance of Head Legal Affairs, as a whole, soas to ensure a business
environment with minimum legal risk.
 My Internship:

The internship is a golden chance for the students of MBA to develop the capability and
polish skills of administration and management in the practical environment of different
organizations. In the context, I selected the PPCBL (Punjab Provincial Cooperative Bank
Limited). This report shows and will guide the readers to have an idea about operations and
the practices followed by PPCBL. The reason for doing the internship in PPCBL is to get
knowledge about Administrative practices prevailing in this Bank.
I started my training in PPCBL Head Office Mall road Lahore. I joined on 15 thJuly
2013. This training session lasts till 14 October 2013. During this internship I learnt how to
implement theory in practical. I tried my level best to polish my professional skills and
enhance my practical knowledge.

Chapter No: 6
 PROBLEMS&SUGESSTIO
NS

Problems:

1) The Human Resource Department is not up to the mark for the proper
appraisal system of the staff.

2)The policies of the bank are determined by the board of directors in

accordance with the H.R. Department. However there are certain policies in
which the Human Resource Department is dependent on the State Bank of the Pakistan e.g.
the mark up rate that is 14%. It limits its powers and dependency is increased and risks are in
creased.

3) Employees have developed a psychology that promotion criteria &

procedures of the Human Resource Department of the bank are not justified.

4) The mark up rate in many programs is much higher hence creating the
problems for customer.

5) Human Resource Department is lacking employee training centers. There

are only two training centers at Faisalabad and Bahawalpur which are
insufficient for the training and refreshing courses of the employees.

6) If an employee wants to study during the job, he has to take approval from the Human
Resource Department of the bank; there are certain bottle necks for taking such approval.

7) Proper evaluation of the employees is not in the normal functioning of the

bank.
8) Refreshing courses are on & off, not timely and frequently.

9) The proper information system is not in progress for the Human Resource
Department. The automation process by the Human Resource Department is
slow hence delaying the functioning of the bank.

10) Human Resource department lacks staff and it is very difficult for the
Human Resource Manager to do the right things for their organization and it
takes much time for normal working of the organization.

11) PPCBL has a less number of people who have technical skill of computer and information
technology.

12) Up till now many branches could not be brought to online system.

13) As the PPCBL has to deal with the illiterate farmers that is why it has to keep itself as
simple as the farmer’s mentality.

14) The employees are promoted after a very long time that causes a distress among employees.

15) Many branches still practice their daily transaction by book, which makes banking laborious
and time consuming.

16) Branches of PPCBL are ill equipped, less and poor quality furniture
is provided.

17) Record keeping is poorly practiced.

18) The current structure and operation of activities are vulnerable to following:

The current information system is manual.

There is no strong internal control department.

The current loaning procedure is susceptible to fraud and forensic issues.

The workforce seems impoverished and work patterns are not competitive.

19) The banking infrastructure is weak and not up
t o   d a t e   t o   c o n t e m p o r a r y c o m m e r c i a l banking practices.
 SUGGESTIONS
STRATEGIC REFORMS IN OPERATIONS:

Board and President/CEO:

In accordance with Section G1 (A) of the Prudential 
R e g u l a t i o n s   f o r   C o r p o r a t e Banking:

President of the Bank can be reappointed with professional banking experience.

Rationalization of the structure of the Board may be done.

Board of Directors can be appointed/elected as per FPT criteria as stipulated by State Bank
of Pakistan.

The Board can perform its functions and duties according to the combined code
of Corporate Governance as per SBP requirements.

Diversifying Commercial Banking

The  Punjab  Provincial  Cooperative  Bank  can  diversify  its  operation  in  also
contemporary commercial banking initiatives.

ATM cards can be introduced by bank. Online transfer of money would be possible.

 
Automation of Information System:
Automation:

The  current  manual  procedures  may  be  automated  by  the  aid  of computerization
making Punjab Provincial Cooperative Bank Limited a very flexiblemodern  structure  to
achieve  success  in contemporaryenvironment  of  sheer competition. This process of change
over has already been initiated. The required IT hardware has already been acquired or is in
process. This change over can be implemented with the help of professional IT consultants.
Customized software can be developed with collaboration of software developing house. The
software will be tested and

implemented in phased stages. Resulting in change from manually prepared books of

accounts to computerized transactions. One entry in journal will result in automatic updating
of all relevant accounts. Systems will also comprise of data archiving facility and audit trail
system. The head office will have an intranet which will connect all operations. All
transactions can be linked and checked. Archiving facility can lead to a secondary back up to
data base and available in case of any contingency and problem. Audit trial software can
result in aiding to find the track of data entries will help the external auditor when conducting
the final audit of the bank.
  
Cost Benefit Analysis of proposed MIS. The proposed MIS shall be implemented
with the help of IT consultants. It canbring following benefits to the Bank:The current
manual information system can be automated.This can lead to better performance of
employees and enhanced speed and accuracy of reporting, transaction entry.This
change over can result in quantum leaps as Bank will be only striking
distanceaway from other commercial banks.Changeover can also lead to  better
security and speedy processing of  all day-to-daytransactions.

Human Resource Plan: Objective:

Human Resource Department can craft its separate manual / policy framework and
procedural guidelines to the Human Resource Function in Punjab
ProvincialCooperative Bank. It shall provide a detailed guidance in the
documented form thesignificant policies frame work. Time to time related
policies in personnel related activities.

Human Resource Vision:

(Armstrong, 2008)The Human Resource function in the Bank is designed
toprovide an enabling environment for provide an enabling an environment for
highly efficient workforce, comparable to commercial banks in Pakistan. At
the same time, given the nature of Bank’s operations and clients, employees of
the bank have to project an image that they understand the needs of the
majority of the population who are familiar and often intimidated by the
conventional commercial banks by practicing friendless sensitivity and
community.

Following recommendations may be adopted by HR department in PPCBL for

betterment of HR division.

1). The Human Resources should take less time in recruitment and training the staff.

2). Refreshing courses should be adequate and more frequent during the year.

3). the promotional criteria by the Human Resource Department should be defined and be as per rules.

4). More training centers should be established. If there is lack of resources, it is difficult, the training
centers of the other organizations in the same capacity can be utilized by determining the terms and
conditions.

5) During the training by Human Resource Department the ethical values

should be more emphasized.

6) The proper and competitive evaluation of the methods and procedures

 adopted by other competitors will enhance the performance of Human
Resource Department.

7) This is the era of Information Technology. The functions and procedures of

the bank should be converted from manual to the automatic. It will enhance the
performance of the Human Resource Department and ultimately of the bank.
Human Resource Department should allocate resources for this purpose.

8) Human Resource Department may advice and train employees for one
window operation in order to reduce the time and conserve the resources.

9) Agents for the promotion of the bank policies and to facilitate the customers
by the Human Resource Department may be appointed with proper check and
balance system.

10) Pay packages may be revised in the light of profit earned by the
Organization.

Corporate ideas:
To play primary role in achievement of desired results to act as a helping handed removing
any kind of conflict and grievance in employees to motivate them to work hard.

Primary Policies:

(First Microfinance bank, 2008)

 To prepare a Manpower and Budget at least once a year as part of annual
budgeting exercise.

 To have a systematic methodology for requisitioning personnel for

filling vacant positions in the Bank.

 A personnel requisition may only be raised by concerned functional

head.
 
 To recruit on merit with suitable candidate.

 Training and development.

 To select the most appropriate incumbent for a vacant position.

 To provide new recruits with an appointment letter documentin
g   t h e   t e r m s   a n d conditions of the employment and to conduct an
orientation session to familiarize them with bank environment and corporate
goals.
 Chapter no: 7

CONCLUSION
C O N C L U S I O N:

To fulfill the requirement of the MBA degree program, I have completed my internship with
PPCBL for about three months. During this period I have gained a lot of knowledge and
practical experience. I have practically realized the importance of individual/practical work.

The very important things which I learnt are, like any other basic sphere of modern
socio-industrial activities, Telecommunication is a main and important field for the
development of any country. The staff of organization is highly qualified and their behavior
is friendly. Also the working environment of organization is very good. So I recommend all
students who do their internship in future, should do the training program with PPCBL
because this is very good institution of learning.

If I have to express my experience of internship in PPCBL I would briefly say:

PPCBL is a good Bank in the way that anybody can join it for his/ her long-term career.
Overall working environment is comfortable. Management of branch cares a lot of its
employees and considers them as the Asset of PPCBL. Behavior of senior executive of bank
is very polite and they are caring about the individual’s career and their growth.

Employees at PPCBL are quite efficient. Its employees have to bring their or among
the list of good. Therefore, they work more than their working hours and it is all according to
their will. It also shows their loyalty, commitment to organization.

During my internship training I gathered information regarding how a successful

organization aspect decorticated with the practical.

I found my training at PPCBL to be a very rewarding experience. It was beneficial

because it helped me to aware a real life working environment.
 Conclusion PPCBL is at the maturity stage now. They are following the cost
leadership strategy. They are providing the services to their customer by giving loans and
they are the only ones who are providing the services to such a big extent. I feel pleasure that
I have really gained a lot during three months and enjoyed working with experienced
cooperative and intelligent staff.