Bank of Punjab

Executive Summary:

I have done my internship at the Bank of Punjab, Mandi.Baha.udDin. There are four departments in the branch and I worked as assistant in the branch. For the first two weeks I worked in Cashier department under the supervision of Miss. Mudasra where I have to perform following tasks.

* Fill the deposit slips.

* Fill the pension forms and guide the pensioners in order to take their amounts.

* Manual work of account opening.

Afterwards I have learned about some more things like

* Fill the remittance forms.

* Entering information in KYC (Know Your Customer) forms.

* Take the verisys forms of account holders.

Another task for me was "issuing of the cheques books. It is one of the most interesting works that I have learned in the bank. Cheques books should be issued after all the formalities of account opening forms which have been checked by the branch manager after its completion.

Objectives of Studying the Organization:

Major objectives to study this organization are:

1. To get awareness about the business development & financial techniques

2. Comparison of the assets of organization with other organizations.

3. Policies followed by the organization enforced through laws of SBP.

4. Study the facilities provided by the organization to common public in various forms.

5. To study the terms & conditions for fringe benefits provided to employees of the organization at the age of superannuation.

6. To get MBA (Masters in Business Administration) degree.

7. To apply theoretical concepts in practical aspects

Overview of the Organization:

What is bank?

"Bank is a pipeline through which currency moves into and out of circulation."

Bank accepts deposits and repays cash to its customers on their demand. The Bank borrows money at a lesser rate of interest and lends it to the borrowers at a higher rate. It is thus a profit-lending concern. Bank cannot lend all the money that has been deposited with it. It has to keep a certain portion of the total deposits in cash with them in order to meet the cash requirements of the individuals and business concern.

History of Banking in Pakistan:

Pakistan came into being on 14th August, 1947; sufficient banking services were available in the areas forming Pakistan. Out of the total branches of the nearly 3,500 in the undivided India, as many as about 1,500 branches were existing in these areas.

It was agreed between the two countries that reserve bank of India shall continue to function in the Pakistan territory until 30th September 1948 and that Indian notes would continue to be legal

tender at Pakistan until 30th September 1948. Unfortunately, relationship between the two countries became most strained immediately after independence; banking was mostly in the lands of Hindus who immediately started transferring their offices and assets into India. As a result most of the banks in Pakistan were closed down and even those which were open were not doing any effective business. The number of banking office in Pakistan came down to about 200 on 30th June 1948. Branches of some European banks were also functioning in a limited manner, financing in export of crops, and their number was limited to about 20. It was only the Habib bank, which transferred its office from Bombay to Karachi. Austral Asia bank was another bank, which was in existence in the Pakistan territory at the time of independence. Despite of best efforts on the part of government of Pakistan, no heady way could be made on this behalf and reserve bank of India was in no mood to help the new country. Imperial bank of India, agent of the reserve bank of India also started closing down its branches in Pakistan. Reserve bank also refused to advance money to Pakistan to make essential payments such as salaries etc, also Pakistan's share of Rs.75 billion in cash balance was with held by bank, causing hardships to the newly born state. In view of these hopeless state affairs it was agreed between the two countries that reserve bank would serve as monetary authority in Pakistan only up to 30th June 1948.

NATIONALIZATION OF BANKS:

The principle of nationalization of banks is to stream line the operation of commercial banks in such a way that it may be conductive to the development activities in process in the country.

Since the commercial banks were owned controlled by big business groups of the country it was feared that these banks would not maintain uniformity in their operational and would be instrumental to inflationary pressure. However, the considerations behind nationalization are:

 To form uniformity in the policy of the commercial banks so they may serve the best national interest.

 To make the operation of commercial banks highly sensitive and responsive to the policy of the government relation to financial matters.

 To make the credit policy of the commercial banks more purpose full and effective especially in the development of economic sectors of the country. It acts as an agent of the State Bank of Pakistan.

 To make the best use of the funds available at the disposal of these banks for the economic development of the country.

 To eliminate unhealthy and uneconomic competition among commercial banks.

 To development strong money banks market in the country so that the value of currency may be maintained at stable level both in national facilities to exporter and agriculturists which have not been satisfactory in the past years.

Public Sector Commercial Banks:

Askari Bank

Askari Bank

First Women Bank Limited

FWB

The Bank of Khyber

KB