BAHAWALNAGR CAMPUS

Contact # 0639240298

INTERNSHIP REPORT OF ZTBL

SUBMITTED TO:

DEPARTMENT OF COMMERCE

SUBMITTED BY: MUHAMMAD IKRAM B.COM (HONS) MS IT ROLL NO. 06 SESSION: 2007-2011

DEPARTMENT OF COMMERCE
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Dedication

To my parents whose unconditional love & support helped me in making this report. To my teachers for their cooperation and assistance. To my siblings for their gentle encouragement & valuable support. Also my dear mother for supporting me through out my tenure of learning as well as praying for my success through out my life and also in my future. Her prayers today make me so proud also my dear father for supporting me financially all my life, fulfilling my basic necessaries as well as luxuries of life. I am thankful to my parents for their support through out my study career. Today what I am, because of them.

Acknowledgement

Every praise to Allah Almighty the merciful, who knows about whatever is there in universe, hidden or evident. Who enables me to get such valuable knowledge, which definitely helped me in my professional life. I would like to thanks Mr. Murtaza Bodla who trust my abilities and gave me opportunity to use my skill. Thanks to all staff of ZTBL. They gave me their precious time and I learned lot from them. Thanks to all my friends and family who helped me.

Table of Content
S.NO PARTICUL ARS PAGE #

1. Executive Summary 2. Ch#1 Introduction of the organization

Corporate setup Organization Objectives Organizational Chart

3. CH#2 Financial Statement Analysis I. Common Size analysis (Horizontal+vertical) II. Ratio Analysis i. Efficiency Ratios ii. Leverage ratios iii. Profitability ratios iv. Coverage ratios v. Liquidity Ratios 4. CH#9 SWOT and PEST analysis 5. Learning as Internee 6. Recommendations 7. Conclusion B. Table of Annexure 1. Annexure A Income Statement 2. Annexure B Balance Sheet 3. Annexure C Sample Invoices

Executive Summary

The Zarai Traqiati Bank Limited (ZTBL) is single largest supplier of institutional agriculture credit in Pakistan. ZTBL is corporate body enjoying sami- autonomy in the conduct of its operations. The federal government together with state bank of Pakistan exercise policy control over bank. Both the availability of financial resources and quantum of lending programs of the bank are subject to their approval. The funds for lending are provided by State Bank of Pakistan at 2% below bank rate. The foreign loan obtained from IDA, Swedish International Development Authority, and Asian Development Bank. Lending is done for uptake of modern technology, tapping of underground water resources, application of chemical inputs and miscellaneous activities. My internship goals are to learn about different functions that are performed in branch. I have learned from internship how to carry out work, handle my responsibilities, and learned how to interact with others and what kind of organizational behaviors are acceptable and non acceptable. I leaned time management and work accomplishment effectively and efficiently. I observed there friendly environment, strong relationship among pears and computerized system which enabled organization to avoid problems related to manual system.

CHAPTER # 01 Introduction to ZTBL

Zarai Traqiati Bank Limited (ZTBL) erstwhile Agricultural Development Bank of Pakistan (ADBP) is the premier financial institution geared towards the development of agriculture sector through provision of financial services and technical know how. The restructuring of former ADBP is being carried out with the aim to uplift the agriculture and rural sector by raising farm productivity, streamlining the institutional credit and increasing income generating capacity of the farming community. ZTBL was incorporated as a Public Limited Company on 14th December, 2002 through repeal of ADB Ordinance of 1961. The new corporate structure redefines the bank's status as a public limited company registered under companies Ordinance'1984 with an independent Board of Directors which aims at ensuring good governance, autonomy, delivering high quality. For all practical purposes the Bank is an arm for Government for implementing overall agriculture policy for credit front. The design of credit is linked so for as possible with the periodic priorities and targets as laid down in annual development plans.

HISTORY OF ZTBL
It was considered after independence of Pakistan that the existing institutional sources of credit, such as, taccavi and cooperatives, were insufficiently meeting the credit needs of farmers. Therefore the need for establishment of a third source of agricultural credit was essentially percolated so as to fulfill the credit requirements of farmers not only for production but even for the development purposes. Consequently, the ADFC was brought into existence in 1952 for the purpose of expanding financial facilities and promoting the development and modernization of agriculture in the Pakistan. Subsequently in 1957, the ABP was established that can provide both short term loan for production and long term loan for development. The ADFC & ABP were merged together as the ADPB in 18th February 1961. The ADPB is the main credit supplier to the agriculture sector in the country. According to the Companies Ordinance 1984, the ZTBL was incorporated as a the public limited company on 23th October, 2002. The ZTBL is governed by Memorandum and Article of Association and registered with the SECP under Companies Ordinance 1984. Consequently, on 18th November, 2002, all the assets, contracts, liabilities, proceedings and undertakings of the ADBP were transferred and vested in the ZTBL on 14th December, 2002 by the Federal Government.

Organizational Setup

Board of Directors Audit committee Chief internal Auditor Interna l Audit Zones (7)

President

Head Office Divisions (10) Departments (36) Staff Office Zonal Offices (27+9 Area Offices)

Field

Branches (358) MCOs (1243)

Organization Objectives

To assist rural community, particularly the small farmers, in raising their productivity and income levels through timely delivery of credit, advisory and ancillary services. To build the image of the ZTBL as a proactive, client friendly, financially & operationally sustainable with indigenous product deployment.

To establish and provide backward and forward linkages to strengthen the

agriculture and industrial sector.

The ZTBL can engage in public and private, wholesale and retail partnership to
deepen outreach and reduce operating cost. The ZTBL act as rural commercial bank to mobilize rural capital formation and to commercialize the agriculture sector by delivering the true value of credit to the client.

ZONES & BRANCHES LOCATIONS

With an integrated network of over 27 zonal offices and 358 branches in Pakistan

Sr. No.
1 2 3 4 5 6 Total

Provinces
Punjab Sindh Khyber Pakhtonkha Baluchistan Azad Kashmir Gilgit Baltistan

zone
12 6 4 3 1 1 27

No of branches
162 93 61 32 8 2 358

Products and Services ZTBL Locker Facility

Zarai Taraqiati Bank Ltd. apart from its core functional activity marked with country based agri-business, has started to serve its valued customers by offering lockers facility. Initially, this facility is being offered at following 11 branches:S.No Name of Branch 1 Islamabad Branch 2 Main Branch Lahore 3 Peshawar Branch 4 Gujranwala Branch 5 Faisalabad Branch 6 Multan Branch 7 Sahiwal Branch 8 Sargodha Branch 9 Khan Pur Branch 10 Shafi Court Branch 11 Main Branch Gulshan-e-Johar

Following are the approved rates for rent of lockers and key deposits against which lockers will be allocated: Type Small Specification 6-1/2"x41/2"x23" Medium 13-1/2"x41/2"x23" Large 13-1/2"x81/2"x23" Rent Per Annum Rent after grace period Key Deposit Rs.1,200/Rs.1,500/Rs. 5,000/Rs.1,800/Rs.2,500/Rs.2,250/Rs.3,125/Rs. 10,000/Rs. 15,000/-

Life Time Locker Facility

On lump-sum payment of locker rent for ten years entitle the lessee to avail the locker facility for life time, without key deposit.

Types of Loans Advanced 1. Short Term Loans

Short term loans are loans for shorter period of less than a year. It includes, crop production working capital loans recoverable in lump sum commencing after the harvest/marketing of respective crops and within maximum period of 12 months.

2. Medium Term Loans

Medium term loans are for a period of more than a year but less than 5 years. In includes, dairy farming and livestock etc. The installments of these loans are usually paid able in quarterly or half yearly basis.

3. Long Term Loans

Long term loans are for a period of more than 5 years. These are development loans which require large amount and also need some time to show its result in the shape of better production. It includes loans for tractor, agricultural machinery, poultry farming, godowns and orchard in yearly/half yearly installments within maximum period of 8 years.

Loan Schemes
ZTBL is offering the following loan schemes to the farmers.

Supervised agriculture scheme:

Under this scheme agriculture loans are given for short, medium and long term loans up to Rs. 1.00 million per borrower/per case. The loans are sanctioned for In Fats, livestock, orchard, tractor, agricultural machinery, tube well and irrigation facilities etc. under the scheme besides provision of credit, information are provided to the farmers for planning the farm, production, guidance for implementation of the scheme, marketing and repayment of loans.

Zarkhaiz (one window operation)

For timely and conveniently provision of credit to purchase inputs, loans are provided to the borrowers under One Window Operation being conducted twice a week during Rabi and Kharif seasons. Applications processed on the same day whereas sanction payments are made within three days at Branch. For Rabi Crops one window operation from October to January and for Kharif Crops from April to September each year which is extendable as per requirement of particular area.

Sada Bahar Scheme

For providing timely input loans for crops and working capital for poultry and fishery etc, the Bank has launched a Sada Bahar Scheme. Assessment for inputs requirements for the whole year is made at the time of first application. The amount so assessed is treated as Revolving Limit provided it is within the security limit. The Managers are authorized to sanction such loan limits up to Rs.O.500 million. Schemes main features are as under:

Revolving Credit Limit is fixed to cater production credit and ancillary requirements of the farmers during one year period. The documentation once completed remains applicable for three years with yearly cleanup/renewal without any further documents. The borrowers can draw the credit in lump sum or in installments according to his requirement. Like-wise he can repay in lump sum or in installments during the year when his cash position allows him. Pass Book containing transactions in his SBS Account is supplied to every borrower free of cost.

Tea financing scheme

In order to increase the tea cultivation in District Mansehra, Swat, Mutta, Shangla par and Dir in Malakand Division, tea financing scheme has been introduced which would not only save the hard earned foreign exchange but would also help improve the socioeconomic condition of the inhabitants of the area. The salient futures of the scheme are given as under:

Maximum Credit Ceiling of Rs.60, 000/- per acre has been fixed.

 Farmers owing land up to five acres are eligible to avail loans.

Credit will be given in 3 installments: first year Rs.30, 000/-, 2nd year Rs.15, 000/- 3rd year Rs.15, 000/- provided the disbursed loan is used properly.

The credit would be repayable within 1 year with 6 years grace period with prescribed markup of 9% per annum. Rebate of 1 % will be allowed in mark-up on timely repayment and proper utilization of the loan.

Crop maximization project

Ministry of Food, Agriculture and Livestock (MINF AL), Government of Pakistan has launched Crop Maximization Project in 109 villages in various districts throughout the country to increase the productivity/yield of crops. Under the project MINFAL has to provide funds of Rs, 299.893 million to ZTBL for disbursing loans to the project farmers for purchase of inputs. Till the time funds of Rs.468 Million have since been received by the Bank for the purpose. These funds are to be revolved for meeting input credit needs in the project villages till 30th June, 2014 after which Bank will return the principal amount to MINFAL. Accordingly Credit needs of the project farmers are being met by respective ZTBL branches through Village Organizations formed for the purpose. Duly the currency of the project Bank is authorized to charge 4% per annum mark-up on loans to project growers to meet its operational cost, however in case of default Banks normal rate of return i.e. 9% p will be applicable.

 PER ACRE CREDIT LIMITS Major Crops

Wheat Paddy (Rice) Sugarcane Cotton Maize 16,000 19,000 30,000 21,000 20,000

Minor Crops
Overall Credit Limit Per Borrower Sada Bahar Scheme under one window operation or otherwise Rs.1.000 Million Rs.0.500 Million

Potato Tobacco Mustard Mung Tomato Mash Lentil Groundnut Sunflower Soyabean

36000 29000 11000 19000 3000 11000 14000 15000 12000

Bajra Jawar Gram Guara Caster Oil Barlay Berceme Janter Garloc

11000 11000 12000 3000 6000 9000 4900 4000 26000

Canola Rape Seed Til(Sesame) Suger beet

13000 11000

Turmeric Ginger Lacern & Shaftal

25000 30000 4500

Mature Orchard/Fruits crops 12500

12000

Growing Orchards

S. No. 1 2 3 4 5 6 7 8 9

Trees Mango Citrus Apple Banana Jujuba Guava Coconut Palm Oil Dated

1st Year 24,000 21,000 23,000 29,000 19,000 21,000 29,000 18,000 33,000

2nd Year 13,000 12,000 12,000 20,000 9,000 12,000 6,000 6,000 12,000

3rd Year 13,000 11,000 12,000 23,000 10,000 11,000 6,000 7,000 11,000

4th Year 13,000 13,000 12,,000 30,000 10,000 13,000 7,000 7,000 12,000

5th Year 14,000 13,000 14,000 26,000 10,000 13,000 8,000 7,000 13,000

Types of Security Immovable Property Agricultural Land

Under Pass Book System 80% Outside Pass Book System 70% Under Alienability Certificate 66% Commercial/Industrial Land under Pass Book 80%

Outside Passbook System

Urban Residential/Commercial Plots in all localities outside Pass Book 75% Alienability Certificate 66% Residential/Commercial Buildings 70% Lease hold rights of a leased land of CDA/KDA with 99 years lease 70%

Moveable Property and Guarantees 1. Unconditional Bank guarantee from scheduled Banks
Up to maximum amount of an un-conditional Bank guarantee after keeping sufficient margin for un-paid mark-up, cost, charges and expenses.

2. Guarantee issued by Central or Provincial Government

Full amount of loan plus return and other charges.

3. Government securities
85% of face value or market values whichever is less.

4. Defense Savings & FEB Certificates

75% of value of certificates presented as security.

5. Fix Term Deposits Receipts

85% of face value of deposits receipts.

6. NIT Units
80% of the face value or market value whichever is less.

7. Life Insurance policies

85% of surrender value

8. Pledge of Potatoes/Seed Potatoes price or market value which ever is less

Up to 75% of Govt. support.

Personal Surety Against a bond with two sureties under General Credit and one surety in Special Schemes up to Rs.25,000/- or Up to 50% of appraised value of properties of sureties.

Recovery Procedure
A) Recovery Schedule

Recovery schedule in each loan case as per terms of sanction of loan is fixed and communicated to the borrowers after disbursement of loan. In case of default or failure in repayment of any installment on due date the mark-up shall continue to be charged and last installment due to this may differ from the amount of installments fixed at the time of disbursement.
b) Issuance of Notices

Demand notice is issued before the due date of every installment. A Legal Notice is issued one month after the due date informing the borrower that if the amount is not repaid within next one month, further legal action will be taken to recover the dues.

c) Legal Action

Legal action can be initiated against the defaulter if loan is not repaid even after expiry of legal Notice period. Where the court in bank's favour has decreed a case, account is to be settled by recovery of amount from the auction of the mortgaged property. The bank may purchase the mortgaged property if considered feasible to dispose it off later on through auction or in any manner deemed fit for getting the best price. The bank may dispose off the mortgaged properties of defaulters for satisfaction of its dues with out intervention of courts under Financial Institutions (Recovery of Finances) Ordinance 2001.Rescheduling of Loan Repayment Facility .
d) Rescheduling of Loan Repayment Facility

ZTBL allows rescheduling of repayment of installments to its borrowers in order to maintain credit discipline and to mitigate their genuine problems in real hardship cases and in areas declared as calamity hit by the respective Provincial Governments

 The Rescheduling facility is to be considered by bank on case to-case basis and is to be allowed on borrower's request only. The relaxation in recovery period shall not be allowed beyond one year in any case. The borrowers shall have to execute a supplementary loan agreement on Non Judicial Stamp Paper of appropriate value to give legal cover to extended period. The borrowers shall have to pay the return for the extended period.
e) Down Payment for Rescheduling of Loans
Rescheduling Number 1st 2nd 3rd Rate of down payment as against due installments to be rescheduled 10% 20% 30%

Financial Analysis
In this report financial analysis is done in two ways: Trend analysis Horizontal analysis Vertical analysis Ratio analysis

Trend Analysis
Trend analysis is done in two steps and first one is Horizontal Analysis:

Horizontal Analysis
An analysis of percentage financial statements where all balance sheet or income statement figures for a base year equal 100% and subsequent financial statement items are expressed as percentages of their values in the base year. It is also called Index Analysis. Here I have done Horizontal analysis using fixed base method. For which values of the year 2008 are taken as base.

Formula:Vertical Analysis

Current Year / Base year * 100

Vertical analysis helps us to show the actual increase or decrease in various items of Profit and Loss Statement with regard to a specific base as Markup Interest Earned and for balance sheet items Total Assets are taken as base. This analysis is also called Common- size Analysis. Vertical analysis of the balance sheet shows the percentage increase and decrease in various items in terms of total assets. The above analysis is done by taking total assets as base and considered this figure equal to 100%.

Ratio Analysis
Ratio Analyses is a tool used in financial analysis. It is the most popular technique of financial analysis. A ratio is the indicator of the quantitative or arithmetical relationship between two variables. it can be expressed in terms of fraction, percentage or proportion. In financial analyses a ratio is used as a yardstick for evaluating the financial position and performance of a firm.

Liquidity Ratios:Liquidity represents the ability of a bank to efficiently and economically accommodate deposits withdrawal as well as fund increase in assets. A bank has a liquidity potential when it has the ability to obtain sufficient funds in a timely manner at a reasonable cost. Liquidity is a primary factor leading to a banks failure whereas high liquidity helps otherwise weak institutions to remain funded during the period of difficulty.

I.

Current Ratio

The calculation of current ratio of the ZTBL from 2006 to 2007 is calculated and interpreted as under; Formula: Current Assets/Current Liabilities 2006 1.32 2007 1.40 2008 0.99

Analysis: If we interpret the current ratio of the ZTBL, it is slowly increasing from 2006 to 2007. The current ratio in 2006 lower than rest of the years which is 1.32 which means that the bank is able to pay the current liabilities 1.32 times from its current assets. In 2007, the current ratio sharply increased to 1.40 and then decrease. However, the

higher the current ratio, the more the bank is considered to be liquid in order to satisfy short term obligation.

II.

Quick Ratio:

The calculation of quick ratio of the ZTBL from 2006 to 2007 is calculated and interpreted as under; Formula: Quick Assets/Current Liabilities 2006 2007 2008 0.26 0.37 Analysis: The quick ratio of 1.0 or greater is occasionally recommended but for the organizations, the quick ratio cannot provides a better measure of overall liquidity only when a firms inventory cannot be converted into cash, because the short term investment is lower than short term financing from 2005 to 2007.

Leverage Ratios
Any ratio used to calculate the financial leverage of a company to get an idea of the company's methods of financing or to measure its ability to meet financial obligations. There are several different ratios, but the main factors looked at include debt, equity, assets and interest expenses.
I.

Debt Ratio:-

A debt ratio of greater than 1 indicates that a company has more debt than assets; meanwhile, a debt ratio of less than 1 indicates that a company has more assets than debt. Used in conjunction with other measures of financial health, the debt ratio can help investors determine a company's level of risk. Formula: Total Liabilities/ total assets) *100 2006 83.85 2007 84.00 2008 83.03

Analysis: The debt ratio of the ZTBL in 2007 is 84.00%, which is a highest from the rest of the years while lower in 2006 which is 83.85%. The high the ratio, the more the bank is risky & having more leveraged while low ratio will leads a firm less risky & having less leveraged. The high leveraged consider to be unfavorable if the creditors of the bank can start to demand repayment of debt.

II.

Debt to Equity Ratio

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 debt/ Total shareholders equity) *100 2007 0.29 2008 0.20 2009 0.18

Analysis The debt to equity ratio of Zarai Taraqiati Bank of Pakistan does not show the strong position of financial position. It is continuously decreasing from last years.

III.

Debt to Total Assets Ratio:This ratio is very similar to the debt-equity ratio. A ratio under 1 means a majority of assets are financed through equity, above 1 means they are financed more by debt. Furthermore you can interpret a high ratio as a "highly debt leveraged firm".

Indicates what proportion of the company's assets are being financed through debt

Formula: (Total debt Total assets)*100

2006 0.17 Analysis:

2007 0.13

2008 0.10

The trend in above given table shows that the Total Debt to Total Asset Ratio decreases continuously, as in 2007 it was 0.17 and in 2009 it is 0.10. The reason is that the company is equity based and low financial leverage, accordingly there is very low Debt/Total assets ratio. This trend is continuing over the past five years.

Profitability Ratios:The profitability ratios indicate the efficiency of operations and the organizations pricing policies. Profitability imitates not only the quantity but also the trend of earning during a specified period but also influences the maintenance of earnings.
I. Earning per share:-

The EPS of the ZTBL is calculated & interpreted as under; Formula: Net Income / # of Outstanding Shares 2006 2007 0.350 0.870 Analysis: 2008 2.077

The EPS from 2006 to 2007 is gradually increasing from 0.350 to 0.870 respectively. A small increase is seen in 2006 due to increase in net income which is 419,806. While in 2007, the EPS is sharply increased to 0.870 and then continuous increase to 2.077 in 2008. Due to further increase in net income with same amount of total number of ordinary shares. Higher the EPS indicates that the ZTBL can earn on behalf of each share, but not the amount of earnings actually distributed to shareholders.

II.
return.

Total Asset Turnover:-

This ratio shows the overall efficiency of the bank in utilizing its assets to earn mark up Formula: (Interest of markup of return earned Total Asset)*100 2006 6.63 Analysis: 2007 7.45 2008 8.27

In 2007 it was 6.63and in 2008 it was increased to 7.45and it increased to 8.26 in 2009. So the year 2009 was best year from profitability point of view in these years .

III.

Return on Total Assets:-

This ratio indicates the profitability of the bank based on total assets, it means that what is the ratio of net profit after tax to total assets Formula: (Net profit after tax Total assets)*100 2006 0.49 2007 1.11 2008 4.43

Analysis: In 2007 it was 0.49% and then increased to 1.11% . This decrease shows the banks efficiency to generate net profit as compared to last year. The Higher the ROA ratio shows that the bank has efficiently managed its assets portfolio to earn a more money on total assets, achieving economic efficiency & more opportunities of financing in the year 2007 as compared to the rest of years.

IV.

Return on Equity:-

This ratio shows that what the ratio of profit is after tax to capital funds Formula: (Net profit after tax capital fund)*100 Capital fund = Share Capital + Reserves + Inappropriate Profit 2006 8.25 2007 13.65 2008 14.062

Analysis: In 2006 this ratio was 8.25% and it increased to 14.062% in 2008 that was a good sign especially for shareholders. This is a healthy increase in view to 2007 and 2008 and is due to the increase in profit after tax. The higher the ROE ratio, the greater will be the opportunities to earn high return & consider being favorable while lower the ROE ratio, the lower will be the opportunities to earn low return & consider to be unfavorable.

SWOT Analysis of Organization

The unique strengths are internal abilities of an organization that can be used to have a competitive advantage for the organization. Weaknesses inherent in organization are those that need improvement for better functioning of an organization. Opportunities are those which are available to organization currently as well as in the foreseeable future. Threats are those that organization faces from its competitors, regulatory bodies, and technological change or customer preferences. The identification and analysis of strengths, Weaknesses, opportunities and threats is focal to any strategic process. Strengths Enrich Agri-relation ship of 40 years Extensive countrywide network of 343 branches Grass root level contact with the farmers through functionaries Predominant position in agriculture finance market Support of Government, State Bank of Pakistan and International Development Supervised and diversified credit system Marketing is done with customer friendly cues and language Employs having first hand experience with farmers hired from remote areas Availability of Staff training facilities

Institution in respect of restructuring

Weaknesses poor perceived image political interference in operational and administrative matters of bank centralized administrative and financial authority Skill mis-match of staff Aging work force Over- supervised management structure Lack of commercial mindset Weak and cumbersome systems and procedures Strongly entrenched resist to change Around 600 pending disciplinary cases

Opportunities

Huge untapped ruler market potential of about Rs. 300 billion Huge untapped micro finance market segments Potential for bringing huge uncultivated areas under production Potential for expansion through mobilization of rural and urban savings Potential for marketing new product lines on commercial basis Post restructuring potential for obtaining financial credit lines

Threats Competitive commercial banks External pressure to implement non-commercial directives Various unrecovered loans taken by big guns Political and economic instability and law and order situation Water disputes within country

Public sector organization

10.1 10.5.1

Pest analysis Political

Pakistan despite all international and public perceptions, today is a functioning democracy and gradually there is a change in complexion and composition of legislatures with more educated people and women (27% of National Assembly and 17% of Senate) entering into politics. Similarly it helps in designing best strategies to implement that could support the revival of bank industry. Like in the era of nationalization bank had to suffer as other industry thats why that impact is still found in the performance of this industry.

10.5.2

Economical
Although banking sector development is important at the early stage of economic growth, general liberalization presuming a homogeneous bank role may not necessarily promote growth. The estimated cost structure indicates that state-owned commercial banks are large enough, while development financial institutions and private banks can expect to obtain cost-saving advantages by expanding their operations. Since scope economies are significant, portfolio diversification generally increases bank profits. In addition, privatized banks are the most efficient, followed by foreign and private banks. Public banks are the least efficient.

10.5.3

Social
Banks always helped people in improvement of living condition of poor people in various forms like giving loans to poor for starting business or directly providing them the instruments that could enhance their living conditions. Similarly ZTBL always tried to provide the needy people loans on soft terms and also helped to eradicate unemployment by providing job opportunities Recent high growth trends coupled with enhanced spending on social and 2007/2008 has together begun to pay some dividends.

Technological
There is Inadequate Communication infrastructure. Smaller and lowest computer facilities. Inadequate IT training. Their must be an efficient IT department.

Learnings
During my stay in ZTBL (6 weeks) I worked in

Dispatching System

Beside this I also worked in Dispatching System Main purpose of this system is to keep record of all incoming and outgoing letters, emails, and applications. These letters are circulated inside (between departments and units) and outside organization (stake holders or suppliers). For this purpose using MS Office Master File is produced in which details about letter received (receiving date, from whom it is received and whom to forward with date) and then detail about letter Delivery (delivered date and name of department or person where it has to be delivered. A copy of letter is attached in hard form in Master file. Another record is maintained side by side called Employee Diary In this record of sender and receiver is kept.

Analysis New knowledge Acquired

The core of my internship was the knowledge I acquired. Before internship I was entirely ignorant of a banks business processes. But this internship program has

made me aware of most of banks business processes and hence it has built in me, immense confidence to step into bank and carry out the routine banking tasks.

New Exposure
My internship experience has given me a completely new industry exposure in the banking sector, which includes both the consumer banking and branch banking.

People Diversity:
Being an introvert personality, I never had the precious experience in people diversity. During this internship period, I interacted with so many people both customers and employees with diverse personalities and behaviors, different age groups, some far too senior and experienced that it has given me confidence to interact efficiently with people.

Tactful communication; a MUST

From this internship program, I have realized that the skill to communicate tactfully is the thing we should learn and polish, especially in dealing with customers. It is not the most important if you dont have the required skills at this moment. Rather, being creative in problem solving and being a quick learner are the keys to success in the fast growing banking sector.

Career Awareness
This program was a career awareness program as well in the sense that it helped me in identifying my interests. What I have identified is that I want to do some thing dynamic and not an assembly line kind of job. Moreover, I have found that in Pakistan, it doesnt matter what is your field of education meaning that as long as you have the slightest idea of job in hand and you are an active learner, you can work wonders.

Recommendations
I. Although sill, there is cooperative environment in the ZTBL, but there is a need to further boost it up. There must be cooperation among staff members, management, customer and shareholders. II. III. IV. V. The job rotation of duties of employees should be implemented to improve the performance which will enhance their skills and confidence. The motivation level of the employees should be enhanced by increasing compensation and giving extra fringe benefits. The advertisements of the products and the services of the ZTBL should be done in a proper way with a strategic management. To hire creative, skillful and young employees on the basis of their eligibility and experience but not on discrimination basis. The recruitments should be strictly on merit basis and induction should be after proper and extensive training. VI. To remove the file keeping barriers, which waist a lot of time on searching of files. There should be a proper check and balance. The documentary records of the ZTBL should be correct and complete. VII. More rewards and bonus schemes should be for management as well as for employees and promotion should be based on performance of employees and not on favoritism. VIII. IX. X. The ZTBL has developed a web site but still only its front home page has been developed while other banks have good attractive sites. The efforts should be made to reduce the employee turnover and absenteeism rate because it creates misunderstanding and conflicts in the ZTBL. In order to increase cooperation among employees, management has to arrange different parties or get together which will create love, care and cooperation among employees. XI. The MIS is still not fully understood by all of the employees. To cope with this situation, the management should arrange workshops and short courses, so that the employees can benefit fully from the MIS.

XII. XIII.

The employees attitude and behavior towards work and customers must In order to increase the motivation, job satisfaction, and organizational

be positive and polite way at time of conversation. commitment the organization should give special incentives to all the old as well as new employees. This may be in the form of promotion or increase in pay or other facilities provided to them on performance basis. XIV. XV. The promotions should be given to the employees of ZTBL on the basis of performance rather than seniority, time period or designation. The job rotation techniques should be adopted so as to make the staff knowledgeable of the operation of various departments of the ZTBL.

Conclusion

At the completion of six weeks business internship in ZTBL As an internee draws the following: I am able to work in financial institutions. Deal with various types of people have different attitude The premier financial institution geared towards the development of agriculture sector Enrich Agri-relation ship of 40 years Lack of commercial mindset Around 600 pending disciplinary cases Potential for bringing huge uncultivated areas under production Potential for expansion through mobilization of rural and urban savings Reshaping and reconstructive.

As an internee draws the following about ZTBL:

BIBLOGRAPHY

WWW.ZTBL.COM.PK

WWW. GOOGLE .COM.PK

AUDIT REPORT 2007

AUDIT REPORT 2008

Annexure C

Sample of Debit/Credit Voucher Zarai Tarqiati Bank Ltd.

Branch----------------Name-----------------Parentage-----------Village---------------Tehsil----------------Debit Cash Voucher (Cash Receipt) Branch Code Date Serial No.
N o. Particul ars Loan Case no./ A/c no./ Advi ce no. G.L He ad TR Co de RO Co de Effecti ve Date Amou nt

154700
Reco rd no./C A Code

Contra Voucher/Co ntra Branch no.

Tota l

Amounts in words:--------------------------------------------Enclose:----------------------------------------------------------Prepared by:----------------------------------------------------Checked by:-----------------------------------------------------Authorized Signature:---------------------------------------

Annexure C II

Sample of Transfer Voucher Zarai Tarqiati Bank Ltd.

Branch----------------Name-----------------Parentage-----------Village---------------Tehsil----------------Transfer Voucher Branch Code Date

Serial No.
No. Particulars Loan Case no./ A/c no./ Advice no. G.L Hea d TR Code RO Code Effecti ve Date

154700
Contra Voucher/Co ntra Branch no. Recor d no./CA Code

Amou nt

Total
No. Particulars Loan Case no./ A/c no./ Advice no. G.L Hea d TR Code RO Code Effecti ve Date Amou nt Contra Voucher/Co ntra Branch no. Recor d no./CA Code

Total

Amounts in words:--------------------------------------------Enclose:----------------------------------------------------------Prepared by:----------------------------------------------------Checked by:-----------------------------------------------------Authorized Signature:---------------------------------------