MRK Spring2011 FINI619 BankofPunjab

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Virtual University of Pakistan
Evaluation Sheet for Internship Report
Spring 2011
FINI619: Internship Report (Finance)
Credit Hours: 3
Name of Student:
Students ID:
http://vustudents.ning.com/
1
Evaluation Criteria Result
Report writin Pass
!resentation " #iva
voce
Final Result
PASS
Dear Student, keeping in view of your over all work, you
are declared PASS in your written work. Start preparing
for presentation & viva voce and improve your work
according to the given instructions and guidelines
available at V!"S of your course under the icon
D#$%!#ADS after clicking &#'S( $()S*+( at
V!"S. Also read lesson , - of this course in this for
effective preparation of your presentation slides.
See evaluated *%+('%S.*P '(P#'+, follow the
guidelines and instructions and remove deficiencies /if
any0 till your presentation according to the given
instructions.
1our concepts regarding your internship work and ratio
analysis should be very strong for delivering an
effective presentation.
For any further guidance about your presentation and viva,
ask your queries via MDB or email at fini619vu!edu!pk
The Bank of Punjab
Main Branch Circular Road, Near Fawara Chowk, Gujrat (011
2
Fall !00"#$%rin& !011
$ub'i((ion )ate*
5
th
August, 2011
Virtual University of a!istan

)edication
"
# dedicate this report to my loving mother and sister and friends $ithout
$hose help and encouragement it $ould not have %een possi%le. &or me
accomplish this tas! $ithin the specific time limit. # $as provided $ith
every facility %y my mother $ho $as necessary in order to complete this
challenge assignment.
+cknowled&e'ent
'
# am very than!ful to ,+l'i&ht- +llah. the most %eneficent, the most mercy full $ho
has given the strength to complete this tas!. # am also than!ful to %ranch manager and
operational manager respectively of the %an! of the un(a% circular )oad near &a$ara
*ho$! +u(rat. ,ithout $hose guidance and support it $ould not have %een possi%le for
me to accomplish this assignment.
&urthermore, # am inde%ted to the staff of the staff of the -an! of the un(a%. *ircular
)oad .ear &a$ara *ho$!, +u(rat. &rom $hom # have gained much e/perience regarding
operational $or! of %an! is concerned.
0he last %ut not the last # convey my credit and than!fulness to the virtual universities
Authorities. ,ithout $hose $ell in time support and guidance it $ould %e much difficult
for me to achieve this tas! successfully.

/0ecuti1e $u''ar-
5
0he %an! of un(a% 1-23 esta%lished in 1454 and got the status of scheduled %an! in
144'. 0he %an! of un(a% offer num%er of products in their customer. 0here are 24"
%raches of -2 in the $hole country. &unctionally the %an! of un(a% is divided in the
division and the each division is headed %ye the general managers.
0he government of the un(a% holds the ma(ority of the shares in -2. #t is doing
%usiness in commercial %an!ing and the retail %an!ing. *orporate %an!ing treasury and
investment and trade finance. 0he shares of -2 are traded in all three stoc! 6/changes
of the a!istan.
7y internship program period is 2"
rd
April 2011 to 8
th
9une 2011. :uring internship, #
$or!ed in Accounts opening :epartment, Accounts :epartment, *learing :epartment,
)emittance :epartment, Advance and *redit :epartment and -ill for *ollection
:epartment.
As for as the different ratios of the -an! 2f the un(a%, they all give the healthy sign
regarding financial position of the -an! as $ell as the operation results of the different
financial years. All ratios are fully in accordance $ith the %an!ing industry;s standard and
norm $hich is a yard stic! to measure the performance of any %an!. 0hese ratio depict
and indicate that the financial strength of the on a higher side and further prospect of the
-an! is %righter.
At the end the conclusion and the recommendations are the part of the report.
-i%liography is the part, $hich contain all the references from #, o%tained data to prepare
this report.

Table of Content(
Title Pa&e<<<<<<<<<<<<<....................................................01
Cha%ter 01
8
2ntroduction of Bankin&<<<<<<<<<<<<<<<<<<...... 05
Cha%ter 0!
31er1iew of the Bank of Punjab
!41 5i(tor-666666666666666664444440"
!4! 7i(ion and Mi((ion $tate'ent(66666666610
2." 2rgani=ations >ierarchical *hart<<<.....................11
2.' -usiness Volume<<<<<<<<<<<<<<..12
2.5 roduct ?ines <...........................................................1"
2.8 *ompetitors<<<<<<<<<<<<<<<......18
2.@ #ntroduction of All departments<<<<<<<<...18
2.5 &unctional >ierarchy of -2<<<<<<<<<<14
2.4 *omments on Atructure<<<<<<<<<<<<..20
Cha%ter 08
2ntern(hi% Pro&ra'
".1 #ntroduction 2f circular )oad 7ain -ranch <<<<21
".2 Atarting and ending dates of internship <<<<.<<21
"." .ame of training departments and duration<<<<...21
Cha%ter 09
Trainin& Pro&ra'
'.1 0raining rogram<<<<<<<<<<<.<<<..22
Cha%ter 0:
Ratio +nal-(i(
5.1 &inancial Atatements of -2 <<<<<<<<<<.2@
Cha%ter 0;
Future Pro(%ect( of B3P<<<<<<<<<<<<<<<<<<<<.58
Cha%ter 0<
Conclu(ion<<<<<<.<<<<<<<<<<<<<<<<<<<...5@
Cha%ter 0=
Reco''endation(<<<<<<<<<<<<<<<<<<<<<........55
Cha%ter 0"
Biblio&ra%h- <<<<<<<<<<<<<<<<<<<<<<<<.<54

2ntroduction of Bankin& in Paki(tan

@

-an!ing plays a ma(or role in a country;s economy. After partition of #ndia and a!istan
-ritish government;s commission distri%ute the reserves %et$een a!istan and #ndia.
#n August 14'@, various -an!s transferred their headBuarters and funds to #ndia. -efore
partition of a!CoC>ind, some -an!s $ere operated $hich $ere *hartered -an!, +rindC
lays -an!, #mperial -an! of #ndia, Australasia -an! and >a%i% -an!. After the
independence of a!istan, 7uslim *ommercial -an! ?imited, -an! of -aha$alpur
?imited, un(a% .ational -an! and .ational -an! of a!istan $ere providing %an!ing
facilities to general pu%lic.
0he Atate -an! of a!istan $as inaugurated %y our great leader 7uhammad Ali 9innah.
2n 1
st
9uly 14'5. Australasia -an! and >a%i% -an! $ere providing facilities to the
a!istan;s nation. After some period, Australasia -an! ?imited $as converted into Allied
-an! of a!istan.
Atate -an! of a!istan is a *entral -an! of a!istan. 2ther -an!s are *ommercial
-an!s, Apeciali=ed -an! and #nvestment -an!s.
.o$ a day in a!istan, fifty four %an!s are operated $ith thousands of %ranches. -an!s
are providing -an!ing facilities to their customers and clients %y offering different
services and pac!ages.
a!istan;s %an!ing sector consisting of #slamic -an!s, rivate -an!s, u%lic Aector
-an!s, and 7icro &inance -an!s. 0hese -an!s are doing *orporate -an!ing, 0rade
&inancing, ?ease &inancing and some -an!s are providing online %an!ing facilities, A07
facility and money transfer facilities also.
-an!ing sector is a %ac! %one of our economy. #f this sector is ma!ing progress than
$hole economy is also gro$ing a lot. 2ur Agricultural sector, #ndustrial sector, 7ining
sector, 6/port sector all depend on the %an!ing industry %ecause -an!s provide long term
funds as $ell as short term funds to all these sectors to meet out their short term as $ell
as long term reBuirement. >ence, %an!ing progress is necessary indeed.

31er1iew of the 3r&ani>ation
5

5i(tor-
0he -an! of un(a% started functioning $ith the inauguration of its first %ranch of @C
6gerton )oad, ?ahore on .ovem%er 15, 1454. 0he founder of the %an! 7r. .a$a= Aharif
performed the inauguration.
0he -an! of un(a% is $or!ing as a scheduled %an! $ith its 2@" %ranches in all ma(or
cities of the country. 0he %an! provides all types of %an!ing services such as :eposit in
?ocal currency, *lient :eposits in &oreign currency, )emittances and Advances to
%usinesses, trade, industry and agriculture. 0he -an! of un(a% ahs entered into a ne$ era
of science to the nation under the e/perienced and professional hands of its management.
0he -an! of un(a% has played a vital role in the national economy through mo%ili=ation
of untapped local resources, promoting savings and providing funds for investments.
0he -an! of un(a% has played a vital role in the economy through mo%ili=ation of
untapped local resources, promoting savings and providing funds for investment.
0he -an! of un(a% has the privilege to discharge its responsi%ilities to$ards national
prosperity and progress. ,ithin the couple of years of its scheduling, the %an! has not
only carved out for itself prominent niche in the mainstream %an!ing of the country %ut in
certain areas it has the distinction of ta!ing the lead. #n short span of time the -an! has
%een a%le to evolve a distinct corporate culture through of its o$nedC%ased policies,
$hich are realistic and are on highly professional footings.

7i(ion and Mi((ion (tate'ent
4
7i(ion $tate'ent

D0o %e a customer focused %an! $ith service 6/cellenceE
Mi((ion $tate'ent
D0o e/ceed the e/pectation of our sta!eholders %y
?everaging our relationship $ith the government of
un(a% and delivering a complete range of professional
Aolutions $ith a focus on program driven products
And services in the agriculture and middle mar!ets
0hrough a motivated teamF

3r&ani>ational 5ierarch- chart
10

11
Chair'an
Board of )irector(
Chief /0ecuti1e
3fficer
/0ecuti1e Co''ittee
/0ecuti1e 2nchar&e(
+rea Mana&er North +rea Mana&er $outh
Bu(ine(( 7olu'e
Total Nu'ber of $tock 5older(
:irectors 0
rovincial +overnment 284,858,882
Associated *ompanies 0
&oreign Ahareholders "@,58@,804
#ndividuals 82,528,255
#nsurance *ompanies/7odara%a 7utual &unds "2,44",5'0
?easing *ompanies 45@,@01
*harita%le 0rust 2@",411
*ooperative Aocieties 18,011
.#* Units ",205,80@
#* 44,00
9oint Atoc! *ompanies 14,5'8,555
2thers 101,@1",242
Total nu'ber of (hare( :!=,<"=,8<;

12
Product ?ine
)e%o(it( Product(
*urrent Account
-asic -an!ing Account
0i(arat Account 1?*G3
Aupreme *urrent Account 1&*G3
Goung ?oin Aaving Account 1 .e$ roduct 2010 3

Profit ?o(( $harin& Ter' +ccount
rofit and ?oss sharing 0erm Accounts offered %y -an! of un(a% are:
?A Aaving Account
Aenior *iti=en Account
+harayloo Aaving Account
Hiada 7unafa Aaving Account
?ACAaving rofit plus Account
*orporate remium Account
Aupreme Aaving Account 1?A3
Aupreme Aaving Account 1&*G3
*orporate remium Account
Con(u'er Finance
0ypes of consumer finance offered %y -an! of un(a% are:
Aasaih ?oan
Iuic! *ash
*ar ?oan
>ouse ?oan
Amall *ash ersonal ?oan
-2 7otorcycle ?oan

1"
Co''ercial Finance

0he -an! of un(a% offers follo$ing *ommercial &inancing ?oans:
)unning &inance
*ash &inance
:emand &inance
*.+ &illing Atation Acheme
Auto ?ease &inancing Acheme
*ar ?ease &inancing Acheme
Jaro%ar -arao Acheme
&ertili=ers :ealers &inancing Acheme
Ali A!%ar +roupK &ranchise &inancing Acheme
Atlas >onda ?imited KAuthori=ed :ealers &inancing Acheme
&inancing AchemeK urchase of 2ffice/Ahops
/lectronic Bankin&

6lectronic -an!ing provides nonCstop %an!ing convenience, t$enty four hours a day,
seven days a $ee!.
Visa :e%it *ard
#nternet -an!ing
A07 .et$or!
-2 Iuic! pay
*all *enter
$er1ice(
0he -an! of un(a% is dedicate in its efforts to provide a Buality %an!ing e/perience to
our customer via a range of uniBue -an!ing Aervices
*ommercial -an!ing
2nline -an!ing
*ash 7anagement Aervices
Utility -ills
?oc!ers
1'
0reasury
,estern union 7oney 0ransfer

+&riculture Credit
Agriculture credit is provided to the farmers and livestoc! organi=ations.
-an! of un(a% provides follo$ing agriculture loans $ith a specific mar!up rate:
+reen 0ractor ?ease &inance
Agri &inance -ranch
Agri &inance Acheme
Jissan :ost &inance Acheme
Aecond >and 0ractor ?ease &inance Acheme
Jissan :ost Aa%iari Acheme
Jissan :ost 7echani=ation Aupport Acheme
Jissan :ost &arm transport Acheme
Jissan 6slahiCeC6ra=i Acheme
Jissan :ost ?ive Atoc! :evelopment Acheme
?ivestoc! -reed #mprovement 0rough VV,
Jissan :ost *ommercial Agro Aervices
Jissan :ost Agri 7all &inance Acheme
*orporate &arming &inance Acheme
*ommercial ?ease &inances 0ractor Acheme
:emand &inance Aheds *onstruction and *ivil ,or!
?ease &inance &acility for 7il!ed Animals
)unning &inance ?ivestoc! oultry
Jissan :ost 7odel dairy &arms 1::*3
Jissan :ost 7odel 7il! *entre 1::*3
Jissan :ost +reen >ouse &inance &acility
Jissan :ost *old Atorage &inance &acility
Acheme for *ontrolled Ahed
?ease &inance &acility for #nstallation of -ioCgas lant
+roup &inance to Amall farmers
*lean *redit &acility through Ayngenta &ranchises
Har!aashat :rip #rrigation Aystem
7ar!up of Achemes
Trade Finance
15
0rade finance is a loan provided to the importers and e/porters to ma!e their
transaction effective. 0his enhances the glo%al %usiness. 0he -an! of un(a% ma!es some
trade processing centers to cooperate the e/porters and also to the importers in different
cities of a!istan such as ?ahore, #slama%ad, )a$alpindi and Jarachi.
Co'%etitor(
0he competitors of the -an! of un(a% are the other commercial %an!s in a!istan such
as:
7uslim *ommercial -an! ?imited, Aoneri -an! ?imited, United -an! ?imited,
Allied -an! ?imited, As!ari -an! ?imited, &aisal -an! ?imited, Atandard
*hartered -an! ?imited, >a%i% -an! ?imited, >a%i% 7etropolitan -an! ?imited,
And -an! AlC>a%i% ?imited
2ntroduction to +ll )e%art'ent(
0he departments and divisions of -an! of un(a% are as follo$s:
)etail -an!ing :ivision
Apecial Assets 7anagement :ivision
*redit Administration :ivision
>uman )esource :ivision
&inance division
#nformation 0echnology :ivision
2perations :ivision
*redit )is! 7anagement :ivision
*orporate -an!ing :ivision
*ontrol and *ompliance :ivision
0raining, )esearch, *ommunication and u%lic :ivision
*onsumer %an!ing :ivision
18
Audit and #nspection :ivision
?a$ :ivision

Retail Bankin& )i1i(ion
)etail %an!ing division of the %an! deals $ith the customers and e/ecutes their
transaction directly. #t provides the services of saving account, mortgage loans, personal
loans, de%it cards, accounts chec!ing, credit cards, A07 cards.
$%ecial +((et( Mana&e'ent )i1i(ion
0he -an! $ill invest on %ehalf of its clients and give them access to a $ide range of
traditional and alternative product offerings that $ould not %e to the average investor. #t
includes the automatic s$eep of cash %alances into a money mar!et fund, as $ell as
%ro!erage services.
Credit +d'ini(tration )i1i(ion
#n this division, %an!s deals $ith the credit, %an!s give loans to individuals and to the
corporations.
5u'an Re(ource )i1i(ion
0his division performs the duty of hiring the employees, training the employees as $ell
as retaining the employees and if necessary, firing the employees.
Finance )i1i(ion
0his division controls the overall activities relating to finance i.e. monitoring the
investment activities, financing activities, :e%it and *redit of funds and reasons there of
$ith proofs.

2nfor'ation Technolo&- )i1i(ion
1@
0his department controls and record the data related $ith the %an!. 0he %ac!up of all
%ranches is sent to #0 department on daily %asis.
3%eration( )i1i(ion
0his division controls the $hole operation of all the %ranches and controls the cash
activities, cheBues, account opening and other things a%out operations.
Trainin&, Re(earch, Co''unication @ Public )i1i(ion
0his division conducts research on ne$ products, trains ne$ly hired employees, train old
employees on ne$ and innovative circulars in %an!ing sector. #t also provides training on
customer relation management.
+udit and 2n(%ection )i1i(ion
0his department of %an! includes the Audit of all the %ranchesL they do audit of the
%ranches and give some opinions to e/ecute their transactions.
?aw )i1i(ion
#n this division of -2, la$yers are employee to solve the cases of the %an!.
15
14
resident of
-2
>)
:ivision
*redit Administration
:ision
)tail -an!ing
:ivision
Audit
:ivision
#nternational
:ivision
&inance
:ivision
>u%
*ommercial
Assets
7anagement
)egional
0eams
)eport to
Atate -an! of a!istan
)egions
-ranches
#0
:ivision
Functional 5ierarch- of the Bank of Punjab
20
*hairperson of -oard of
+overnor
resident of -2
resident of
-2
Apecial Assets 7anagement
:ivision
>)
:ivision
*redit Administration
:ivision
)etail -an!ing
:ivision
Audit
:ivision
#nternational
:ivision
&inance
:ivision
)*A:
:epartment
>u%
*ommercial
Assets
7anagement
*orporate
Assets
7anagement
)egional
0eams
)eport to
Atate -an! of a!istan
)egions
Areas
-ranches
#0
:ivision
)is!
7anagement
Co''ent on 3r&ani>ational $tructure of Bank of Punjab
)i1i(ion of ?abor
0he structure of the -an! of un(a% is divided into division and these divisions are
further divided into departments. 0his type of structure helps the management in
controlling the operations of the %an! effectively. 6ach division is responsi%le for its
respective duties.
$%an of Control
Apan of control among hierarchical structure is clearly defined. 6ach department reports
to the central department and then this central department reports to the head office.
Co''unication
*ommunication among the organi=ational departments is easy. >ori=ontal and vertical
communication among departments is very effective.
21
Plan of -our intern(hi% %ro&ra'
-an! of un(a% 7ain %ranch *ircular )oad, .ear &a$ara *ho$!, +u(rat
-an! of un(a% opened its %ranch *ircular )oad, .ear &a$ara *ho$!, +u(rat in 200".
0he code of %ranch is 011.
2perations of the %ranch are controlled %y -ranch 7anager and 2perations 7anager.
Ataff of the %ranch is consist on -ranch Aystem Administrator, 2perations Ataff
1including +rade # officer, +rade ## officer, +rade ### officer and t$o cash officers3.
$tartin& and endin& date( of 2ntern(hi%*
# started internship on 2"rd April, 2011 $hich ended on 8th 9une, 2011
Na'e of trainin& de%art'ent( and duration*
0he duration of the internship program $as si/ $ee!s. 0he staff of the %ranch $as much
cooperative. 0hey imparted me training in all departments of the %ranch i.e. Accounts
2pening, Accounts :epartment, )emittance :epartment, *learing :epartment, -ills /
*ollection, *redit and Advance.
.
&rom 2"rd April, 2011 to 24th April, 2011. # $or!ed in Accounts 2pening :epartment in
$hich # learnt ho$ to open an account, ho$ to close an account and ho$ to operate an
account.
&rom "0th April, 2011 to 8th 7ay, 2011. # $or!ed in Accounts :epartment in $hich #
learnt ho$ to use 7anual &action of Accounts :epartment.
&rom @th 7ay, 2011 to 1'th 7ay, 2011. # $or!ed in )emittance department $here at #
learnt and $or!ed in 6ntry of remittance instruments in the system and preparation of
physical instruments
&rom 15th 7ay, 2011 to 22nd 7ay, 2011. # $or!ed in *learing :epartment $here at #
learnt a%out #n$ard *learing, 2ut$ard clearing.
&rom 2"rd 7ay, 2011 to "0th 7ay, 2011. # $or!ed in -ill for *ollection department
$here at # learnt a%out 2ut$ard -ill for *ollection 12-*3 and #n$ard -ills for
*ollection 1#-*3.
&rom "1st 7ay, 2011 to 8th 9une, 2011. # $or!ed in Advance and *redit 1&inance
department3 $here at # learnt a%out the allocation of funds in different portfolios.
22

Trainin& %ro&ra'
Fir(t )a- in Bank of Punjab
# started my internship program on 2"
rd
April, 2011 at the %an! of un(a% $hich ended on
8
th
9une, 2011. 2n first day of my program # $as %riefed %y the %ranch manager a%out
different %ranches of the %an! # $as also told the ma(or rules and regulations $hich $ere
%eing o%served %y the management of the %an! # $as also giving some %riefing %y the
7anager 2peration $hich proved as a miles stone during my internship program. # also
met different mem%ers of the staff in different %ranches of the %an! $here at # A,20 for
%asic !no$ledge a%out those %ranches. 0hen # started my $or!ing in accounting opening
department.
+ccount 3%enin& )e%art'ent
#n this department, # $or!ed for the period from 2"
rd
April, 2011 to 24
th
April, 2011.
+ccount 3%enin& Procedure*
+ccount 3%enin& For'
*ustomer approach to %an! and an account opening is given to him for competing and
signed %y the account holder at different places of the form.
Co'%letion of the For'
Account form is completed in all respect and chec!ed %y the %an! officer and is duly
signed %y the customer $hich is also verified %y the 2peration 7anager.
$%eci'en $i&nature Card ($$C
Aignature specimen card is compulsory for opening an account in the %an!. ,ithout
getting signature of customer you can not open the account.
$i&nature )ifference For'
#f client signature differs from the *.#*, the signature of the client is ta!en on a
signature difference form
2"
Co'%uteri>ed Checkin&
0he %an! officer connected via internet to the .A:)A $e%site chec!s the record of his
customer;s social life. #f the record of the person is o!, then the officer of the %an!
authenticates the record under his signature and stamp and send it to the -ranch 7anager
+ccount Nu'ber
Account num%er is $ritten on the cheBue %oo! reBuisition. After completion of all
procedures, the %an! prepares a letter and sends it to the client at his postal address to pay
gratitude to the customer.
CheAue Book 2((uance
0he first cheBue %oo! consists of 25 leaves and no charges are deducted from the account
the account of client. 0here after %an! sends a recommendation for 25, 50 and 100 leaves
$ith different prices and charges are deducted from the account of clients.
Procedure for Clo(in& of an account
#f customer $ants to close the account, he fills up an account closing form and signs there
in, account %alance should %e =ero, approval is ta!en from the -ranch 7anager Apecimen
card is ta!en %ac! and is attached $ith the form and account is closed.
Procedure of i((uance of Bank $tate'ent
A reBuisition slip is ta!en from the customer duly signed and the period from $hich the
customer $ants to ta!e the statement. After verification of signature -an! Atatement is
issue to the customer and )s. 55 are deducted from account of customer

Procedure for +TMBP2N 2((uance
-an! of un(a% provides the A07 facility to its *ustomers and they can $ithdra$ their
amount at any time through A07. &or issuance of A07, customer has to sign an A07
form and -an! office ma!e an entry in the system and $ithin 15 days %an! receives A07
card from >ead 2ffice $hich is given to the customer.
2'
+ccount( )e%art'ent
,hen # completed my training in Account 2pening :epartment, the -ranch 7anager
sent me to Account :epartment. # $or!ed in Accounts :epartment from "0th April, 2011
to 8th 7ay, 2011.
Account department is responsi%le for %udgeting !eeping record of the revenue and
e/penses all transaction that are ta!e place in the %an! and their physical prove 1voucher3
are come to the account department ne/t day these voucher are also posted to computer
and the computer generated report of daily transaction is created in #0 department and
then they send to the account department to match or tell to computer generated report
and their voucher of daily transaction and save it as a physical record that these
transaction are ta!e place in the %an! at follo$ing date. 0he report generated %y the
accounts department on a daily, $ee!ly, monthly, %iCyearly and yearly is $ritten in a
proper format. #t is neither necessary nor possi%le to get acBuainted %y all of these reports
in a short period of time.
Aome of the common reports are: 7onthly Assets M ?ia%ilities, 7onthly -udget )evie$
)eport, 7onthly 7onitory statement, 7onthly erformance )evie$ )eport and 7onthly
fi/ed investment. &or these statements, five reports carry e/treme importance. 0he five
reports are: :aily position of advances and deposit, Atatement of affairs, :aily e/change
position report, fi/ed assets statement and 7onthly revie$ of performance.
0he account department of -2 has to record even the minor e/penses of the %ranch li!e
tea for staff, stationery for the %ranch.
Re'ittance )e%art'ent
# $or!ed in )emittance :epartment from @th 7ay, 2011 to 1'th 7ay, 2011
)emittance department transfers the fund form one %an! to another %an! and one place to
another place. #n this department collection ta!e place. 0he %an! of un(a% ma!es
payment of only open cheBue on the counter and prohi%its the payment of crossed
cheBues. -an! of un(a% transfer money from one place to another place %y $ay of
payment order, demand draft, in$ard collection, out$ard collection.
)e'and )raft
An order to pay money to the payee $ho is residing outside the city, :emand draft can %e
for a customer $ho may or may not have and account in the %an! %ut the other person;s
25
account must %e maintained $ith the %an! for $hich the payer has demanded the demand
draft.
Pa-'ent 3rder

ay order is order money %ut this payment is to %e made $ithin city. #n other $ords it can
%e said that the payee and the payer should %e in one city. #n pay order payment can %e
made in cash, clearing and transfer.
Clearin& )e%art'ent
# $or!ed in clearing department from 15
th
7ay, 2011 to 22
nd
7ay, 2011. # learnt their
a%out clearing of different cheBues and remittance handling. # $as told there the main
o%(ects of clearing.
# received all the clearing cheBues and made a schedule of these cheBues after ma!ing
entries in out$ard and in$ard clearing registers and sent the same to main %ranch $here
at all the cheBues $ere sent to .#&01.ational #nstitutional &acilitation 0echnology3
N2FT
.#&0 stand for .ational #nstitutional &acilitation 0echnologies. *learing house of A-
has shifted a part of its $or! to private institution names .#&0. .#&0 collets cheBues,
demand draft, pay order, travelers cheBues etc. from all %ranches of different %an!s
$ithin city through its carriers and send them to the %ranches on $hich these are dra$n
for clearing. .#&0 prepare a sheet for each %ranch and send it to each %ranch as $ell as to
Atate -an! of a!istan $here accounts of -an!s are settled.
T-%e( of clearin&
2nward clearin&*
,hen cheBues of other -an!s are deposited in our %an!, after clearing these cheBues
through .#&0 %y the other -an!s on $hich these are do$n. Accounts of customers are
credited.
3utward clearin&*
,hen cheBues of our %an! are deposited in other -an!s and these cheBues are sent to us
for verification, $e de%it the of our client after verification their account.
28

Bill for Collection )e%art'ent
# $or!ed in -ill for *ollection from 2"rd 7ay, 2011 to "0th 7ay, 2011.
-ill for collection is the clearing procedure for cheBue, draft, %ill of e/change, and
promissory note in case that a collection %ranch and a paying %ranch are located in
different clearing areas.
-ill of collection provides service to their customer to get payment from the nearer %an!
at nominal chargers.
+d1ance and Credit )e%art'ent
# $as $or!ed in advance and credit department from "1
st
7ay, 2011 to 8
th
9une, 2011.
Advances and credit department is the most important department in the %an! in this
department advances are giving to the %usiness man, e/porter etc. %efore giving advance,
credit $orthiness of the %orro$er is ta!en into account i.e. character, capacity, collateral,
credit terms etc. advances are also given to different %an!s.
Princi%le( while +d1ancin&
&ive principle that must %e properly pragmatic $hile advancing money to %orro$ers i.e.
safety, liBuidity, disposal, remuneration and suita%ility
Calculation of ?iAuidit- ratio
*alculation of liBuidity ratio i.e. *urrent ratio and Iuic! ratio
T-%e( of ?endin&
0here are three types of lending short term, medium term and long term. >o$ever they
are further classified i.e. )unning finance, :emand &inance, *ash &inance and ?etter of
+uarantee

2@
Ratio +nal-(i(
)atio analysis is helpful to the management of the organi=ation as $ell as for the
investors and creditors. An investor !eeps an eye on the company;s financial statement
and ma!es decisions $hether to invest funds in that company or not. Aimilarly a creditor
also analysis the financial statements and ma!es decisions $hether to grant loan or not.
Financial $tate'ent(
# used &inancial Atatements of -an! of the un(a% for the last three years 2008, 200@ and
2005 %ecause -an! of the un(a% have no &inancial Atatements of 2004 and 2010, due to
court case
&inancial Atatements of -an! of the un(a% for the last three years 2008, 200@ and 2005
are,
The Bank of Punjab
Profit and ?o(( +ccount
+( on 81
(t
)ece'ber
!00;
R(4 (000
!00<
R(4 (000
!00=
R(4 (000
7ar!up/ return/interest earned 11,8'",48" 1@,5"4,5"5 1@,@52,852
7ar!up/return/ interest e/pensed @,5@",@22 1",4"4,"@@ 18,81',000
Net 'arku%Bintere(t inco'e 9,0<0,!91 8,;00,1;1 1,18=,;:!
rovision against nonCperforming loans and
advancesCnet
"'0,828 1,818,'21 15,58",550
rovision for diminution in the value of
investments
"",000 2','@4 "55,@5@
-ad de%ts $ritten off directly 100 2'8,584 CCCC
"@",@28 1,55@,@84 14,252,""@
Net 'arku%Bintere(t inco'e after
%ro1i(ion(
8,;";,:1: 1,<1!,8"! (1=,118,;=:
N3N M+RCDEPB2NT/R/$T 2NC3M/
25
&ee, commission and %ro!erage income '@",212 854,'55 5@4,520
:ividend income 1,"55,5@5 1,512,5@0 2,025,180
#ncome from dealing in foreign currencies 2"4,50' "@@,2"" "2',"2@
+ain on Aale of Aecurities "54,08" 2,0"4,5"5 @"",@5@
Unreali=ed +ain / ?oss on )evaluation of
#nvestments classified as held for trading
CCC CCCC CCCCCCCC
2ther income '88,'"5 5'@,8"5 528,158
Total non 'arkDu%Bintere(t inco'e 2,45',"54 5,'"8,@81 ',155,450
;,;:0,"09 <,19",1:8 (18,"!9,<0:
N3N M+RCDEPB 2NT/R/$T /FP/N$/$
Administrative e/penses 1,@51,4@0 2,255,"'2 2,505,5"5
rovision against lending to financial
#nstitution
1"0,000 CCCCCCCC 10,101
rovision against off -alance Aheet #tems 1@5 242 CCCC
rovision against receiva%le from .#0 CCC CCCC CCC
2ther charges "5 "@,450 11',@00
Total nonD 'arku%B intere(t e0%en(e( (1,==!,1=8 (!,!"8,:=9 (!,"88,;8;
9,<;=,<!1 9,=::,:;" (1;,=:=,891
6/traordinary /unusual items CCCCCCCC CCCCCCCCC CCCCCCCCC
PR3F2T B/F3R/ T+F+T23N 9,<;=,<!1 9,=::,:;" (1;,=:=,891
Ta0ation
&or the year N*urrent 550,44@ 1@0,@00 20@,800
C:eferred
&or prior year N*urrent CC 114,4213 1,052,000
C:eferred 5",'84 250,@@2 5,0"",001
48','88 '01,551 8,@@",'01
PR3F2T +FT/R T+F+T23N 8,=09,!:: 9,9:9,01= (10,0=9,"90
UnCappropriate profit %/f 184,51@ ",228,481 ",'85,458
)eversal of 6/cess management fee accrued
last year
CCCC CCCCC 8,250
0ransfer from surplus on revaluation of &i/ed
assets N net of ta/
8,1@' 5,588 5,5@2
1@5,441 ",2"2,52@ ",'85,2@5
Profit a1ailable for a%%ro%riation 8,"=0,!9; <,;=;,=9: (;,;1;,;;!
24
The Bank of Punjab
Balance $heet
+( on 81
(t
)ece'ber
!00;
R(4 (000
!00<
R(4 (000
!00=
R(4 (000
+$$/T$*
*ash and -alances $ith treasury -an!s 1',05',554 1',210,"02 10,855,055
-alances $ith other -an!s ",@22,054 1,42@,882 2,1@5,'55
?endingOs to financial institutions 11,5'8,52" 2,'50,000 8"","""
#nvestments 25,2"",211 @",'81,84" 22,854,805
Advances 101,"14,45' 1"",544,1'" 1"1,@2',11"
2ther assets ",804,'5@ 5,@54,118 8,122,'08
2perating fi/ed assets 2,085,@'' ",252,@54 ",'@1,5"5
:eferred 0a/ assets CCCCCCCCCC CCCCCCCCC 5,"55,182
Total +((et( 1;9,=::,18< !89,""0,;<: 1=:,="!,"<8
?2+B2?2T2/$
-ills paya%le 558,''5 4"@,8'@ 1,214,501
-orro$ings from financial institutions 8,454,'2' 1@,5'2,415 12,2@5,@@"
:eposits and 2ther accounts 1"@,@2@,808 141,485,"@@ 18',0@1,@"2
Au%ordinated ?oans CCCCCC CCCCCCCC CCCCC
?ia%ilities against assets su%(ect to
finance lease
'0,455 '0,"21 "0,8"2
2ther lia%ilities 2,518,"'1 2,45",4@@ ',58','51
:eferred 0a/ lia%ilities 245,818 2,205,5"0 CCCCCCC
Total ?iabilitie( 19=,<!",9!8 !1:,"<=,<;< 1=!,1;:,91"
Net +((et( 1;,1!:,<19 1",011,"0= 8,<!<,::9
)epresented -y:
Ahare *apital 2,402,'40 ',2"0,"@4 5,25@,4@'
)eserves ',5"@,@"2 @,'2@,2"2 @,'2@,2"2
UnCappropriate rofit ",214,2'8 ",'85,458 1@,8@',25@3
Total /Auit- 10,;:=,";= 1:,1!;,:;< :,090,"9"
"0
$ur%lu( on Re1aluation of +((et( :,9;;,<9; 8,==:,891 (1,818,8":

+nal-(i(
&or the analysis, management and the investors ma!e some ratio analysis, in $hich
?iBuidity )atios, rofita%ility )atios, 7ar!et )atios, Activity )atios, ?everage ratios are
familiar.
Ratio(
#n order to analysis the financial performance of the %an!, investors and management use
the ratio analysis in $hich follo$ing ratios are calculated:
14 ?iAuidit- Ratio(
!4 ?e1era&e Ratio(
84 Profitabilit- Ratio(
94 +cti1it- Ratio(
:4 Market Ratio(
?iAuidit- Ratio(
?iBuidity ratios means to measure short term solvency of the company. A%ility of the
company to pay off its short term de%t. &ollo$ing ratios are calculated in order to
measure the short term solvency of the company
*urrent )atio
Acid 0est )atio
,or!ing *apital
Current Ratio
Current +((et( G *ash and -alance $ith 0reasury -an!s P -alance $ith other
-an!s P?ending to &inancial #nstitution P Ahort #nvestment P
Ahort Advances P 2ther Assets
Current ?iabilitie( G -ill aya%les P Ahort -orro$ing P Ahort :eposit P 2ther
?ia%ilities
Current Ratio G Current +((et( B Current liabilitie(
Hear !00; Hear !00< Hear !00=
"1
QR(4122,"'@,22' / R(4 4',2@',512
Q 148 * 1
QR(41@",120,@24/ R(41'0,202,"@1
Q 14!8 * 1
QR(4125,48@,45"/ R(410@,41',05@
Q 141" * 1
Iorkin&(*
For !00;
Current +((et( Q 1',05',554 P ",@22,054 P 11,5'8,52" P 20,501,4@5 P85,812,015
P ",804,'5@
Q R(41!!, 89<, !!9
Current ?iabilitie( Q 558, ''5 P 8, 454, '2' P 5", 812, 244 P 2,518, "'1
Q R(4 "9,!<9,:1!
For !00<
Current +((et( Q 1',210,"02 P1,42@,882 P 2,'50,000 P 85,55@,581 P 52,555,@55P
5,@54,118
Q R(41<8, 1!0,<!"
Current ?iabilitie( Q 4"@,8'@ P 15,55@,522 P 120,'2",225 P 2,45",4@@
Q R(4 190,!0!,8<1
For !00=
Current +((et( Q 10,855,05@ P 2,1@5,'55 P 8"",""" P 20,0"5,51@ P 54,"2",'5' P
8,104,1"@
QR(4 1!=,";<,":8
Current ?iabilitie( Q 1,214,501 P 10,801,184 P 41,525,5"0 P ',58',25@
Q R(4 10<,"19,0:<
Gra%hical Re%re(entation*
"2
/0%lanation*
0he standard of this ratio is 2:1, means current assets are t$ice the current lia%ilities. -ut
-an! of un(a% has a lo$er current ratio to the standard rate. #n 2008 it $as 1.", in 200@,
1.2" and in 2005 it $ill %e 1.14 $hich is more than the 200@ %ut lesser the 2008.
+cid Te(t Ratio
Current +((et( G *ash and -alance $ith 0reasury -an!s P -alance $ith other
-an!s P?ending to &inancial #nstitution P Ahort #nvestment P
Ahort Advances P 2ther Assets
Current ?iabilitie( G -ill aya%les P Ahort -orro$ing P Ahort :eposit P 2ther
?ia%ilities
Pre%aid e0%en(e( G Advances, deposits, advance rent and other prepayments

+cid Te(t Ratio G Current +((et( J (2n1entorie( K %re%a-'ent( B Current liabilitie(
G R(4122, "'@, 22'C R(4102, 5@1/R(4
4',2@',512
G 14!"
Q R(41@", 120,@24C R(4 154,'"5B
R(4 1'0,202,"@1
Q 14!8
QR(4 125,48@,45"CR(4181,55"/
R(4 10@,41',05@
Q 141"
Iorkin&(*
For !00;
Current +((et( Q 1',05',554 P ",@22,054 P 11,5'8,52" P 20,501,4@5 P85,812,015
P ",804,'5@
Q R(41!!, 89<, !!9
""
Current ?iabilitie( Q 558, ''5 P 8, 454, '2' P 5", 812, 244 P 2,518, "'1
Q R(4 "9,!<9,:1!
Pre%aid /0%en(e( G R(410!, :<1
For !00<
Current +((et( Q 1',210,"02 P1,42@,882 P 2,'50,000 P 85,55@,581 P 52,555,@55P
5,@54,118
Q R(41<8, 1!0,<!"
Current ?iabilitie( Q 4"@,8'@ P 15,55@,522 P 120,'2",225 P 2,45",4@@
Q R(4 190,!0!,8<1
Pre%aid /0%en(e( G R(41:", 98=
For !00=
Current +((et( Q 10,855,05@ P 2,1@5,'55 P 8"",""" P 20,0"5,51@ P 54,"2",'5'
P8,104,1"@
QR(4 1!=,";<,":8
Current ?iabilitie( Q 1,214,501 P 10,801,184 P 41,525,5"0 P ',58',25@
Q R(4 10<,"19,0:<
Pre%aid /0%en(e( G R(41;1, ::8
"'
/0%lanation*
As the Acid test ratio from year 2008 to 2005 is: )s.1.24, )s. 1.2" and )s 1.14
respectively. #n all three years acid test ratio is slight more than is standard ratio.
#t must %e 1:1 in order to proof the short term solvency of the %an! to pay off
is short term %an!.
Iorkin& ca%ital
Iorkin& Ca%ital G Current +((et( J Current ?iabilitie(
QR(4122,"'@,22'CR(4 4',2@',512 GR(41@",120,@24C R(4 1'0,202,"@1 GR(4 125,48@,45"N R(410@,41',05@
Q R(425,0@2,@12 Q R(4"2,415,"55 Q R(421,05",548
Iorkin&(*
For !00;
Current +((et( Q R(41!!, 89<, !!9
Current ?iabilitie( Q R(4 "9,!<9,:1!
For !00<
Current +((et( Q R(41<8, 1!0,<!"
Current ?iabilitie( Q R(4 190,!0!,8<1
For !00=
Current +((et( Q R(4 1!=,";<,":8
Current ?iabilitie( Q R(4 10<,"19,0:<
"5
/0%lanation*
0he $or!ing capital is rapidly increasing from 2008 to 200@. -ecause the current assets
of -2 are rapidly, increase. #n 2005 it declined %ut not in a rapid as it gro$ 2008 to
200@.

?e1era&e Ratio(
0hese ratios sho$ the capital structure of the firm. 0hrough these ratios $e find that ho$
the firm finance their activities. #t is more important for the lender to assess that the firm
can repay the loan amount ort not. #ncreasing de%t increases the li!elihood of %an!ruptcy
of the firm. &ollo$ing ratios falls under this category,
Ti'e 2ntere(t /arned
)ebt Ratio
)ebt to /Auit- Ratio
)ebt to Tan&ible Net Iorth
Total Ca%itali>ation Ratio
Ti'e 2ntere(t /arned Ratio*
Ti'e 2ntere(t /arned G Profit before ta0 K 2ntere(t /0%en(e (/B2T B 2ntere(t /0%en(e
QR(4',@85,@21/R(4@,5@",@22
Q 04;8
QR(4',555,584/R(41",4"4,"@@
Q 048:
Q1R(418,5"2,4083/R(418,81',000
Q D1401
Iorkin&
+iven in the rofit and ?oss Account
"8
For !00;
Profit before ta0K2ntere(t /0%en(e G R(4', @85,@21
2ntere(t /0%en(e G R(4@, 5@",@22
For !00<
Profit before ta0K2ntere(t /0%en(e G R(4 ',555,584
2ntere(t /0%en(e G R(4 1",4"4,"@@
For !00=
Profit before ta0K2ntere(t /0%en(e G R(4 C18,5"2,408
2ntere(t /0%en(e G R(4 18,81',000
/0%lanation*
0he 0ime #nterest 6arned )atio of -2 is not %etter. 0he ratio is consistently is declining
even in 2005 it $ent negative. 0his graph is sho$ing that the %an! 6-#0 is not enough to
cover its interest e/penses.
)ebt Ratio
Total )ebt Q -ills aya%le P -orro$ings from financial institutions P
:eposits M other accounts P Au%ordinate ?oans P ?ia%ilities
"@
against assets su%(ect to finance lease P deferred ta/ lia%ilitiesP
2ther lia%ilities
Total +((et( G +iven in the -alance Aheet
)ebt Ratio G (Total )ebt B Total +((et( L 100
QR(41'5,@24,'2"/R(418',555,1"@
Q "04!1M
QR(4215,4@5,@8@/R(42"',440,8@5
Q "14"0M
QR(4152,185,'14/R(4155,404,120
Q "<4""M
Iorkin&
For !00;
Total )ebt Q 558,''5 P 8,454,'2' P 1"@,@2@,808 P 0 P '0,455P245,818P2,518,"'1
G R(419=,<!",9!8
For !00<
Total )ebt Q 4"@,8'@ P 1@,5'2,415 P 141,485,"@@ P 0 P'0,"21P2,205,5"0P2,45",4@@
N G R(4!1:,"<=,<;<
For !00=
Total )ebt Q 1,214,501, P 12,2@5,@@" P 18',0@2,5"2 P 0 P "0,8"2P 0 P',58','51
G R(4 1=!,1;:,91"
/0%lanation*
:e%t ratio is measure of de%t $ith the total assets. 0he graph sho$s that the de%t ratio is
consistently increasing that indicates the dependence on de%t is increasing and in 2005 it
is at the higher level. &rom 200@ to 2005 it rapidly increased. #n 2005 the total :e%t $as
the almost 4@R of 0otal Assets.
"5
)ebt B /Auit- Ratio
Total )ebt Q -ills aya%le P -orro$ings from financial institutions P
:eposits M other accounts P Au%ordinate ?oans P ?ia%ilities
against assets su%(ect to finance lease P deferred ta/ lia%ilitiesP
2ther lia%ilities
Total /Auit- Q Ahare *apital P )eserves P UnCappropriated rofit
)ebt to /Auit- Ratio G Total )ebt / Total /Auit-
QR(41'5,@24,'2"/R(410,855,485
Q 184":
QR(4215,4@5,@8@/R(415,128,58@
Q 194!<
QR(4152,185,'14/R(45,0'0,4'4
Q 8;418
Iorkin&
For !00;
Total )ebt Q 558,''5 P 8,454,'2' P 1"@,@2@,808 P 0 P '0,455P245,818P2,518,"'1
G R(419=,<!",9!8
Total /Auit- Q 2,402,'40 P ',5"@,2"2 P ",214,2'8
G R(410,;:=,";=
For !00<
Total )ebt Q 4"@,8'@ P 1@,5'2,415 P 141,485,"@@ P 0 P'0,"21P2,205,5"0P2,45",4@@
G R(4!1:,"<=,<;<
Total /Auit- Q ',2"0,"@4 P @,'2@,2"2 P ",'85,458
G R(41:,1!;,:;<
For !00=
Total )ebt Q 1,214,501, P 12,2@5,@@" P 18',0@2,5"2 P 0 P "0,8"2P 0 P',58','51
G R(41=!,1;:,91"
Total /Auit- Q 5,25@,4@' P @,'2@,2"2 P 1N @,855,858 1?oss33
G R(4:,090,"9"
"4
/0%lanation*
As $e already o%served that the de%t is increasing, in this graph $e compare it $ith the
eBuity. ,e find the consistent increase in the de%t to eBuity ratio. #n 2005 it $as at the
higher level. 0he de%t e/ceeded the eBuity.
)ebt to Tan&ible Net Iorth
0angi%le .et ,orth Q 0otal Assets N ?ia%ilities N #ntangi%le Assets
)ebt to Tan&ible Net Iorth G Total )ebt B Tan&ible Net Iorth
QR(41'5,81','88/R(418,045,2'5
Q "40:
QR(4210,@54,280/R(415,44",@25
Q 11410
QR(41@@,801,@"5/R(4",@"5,81"
Q 9<4:9
Iorkin&
For !00;
Tan&ible Net Iorth Q 18',555,1"@ N 1'5,@24,'2" N "0,'88
G R(41;,0":,!9=
For !00<
'0
Tan&ible Net Iorth Q 2"',440,8@5 N 215,4@5,@8@ N 15,15"
G R(41=,""8,<!:
For !00=
Tan&ible Net Iorth Q 155,404,120 N 152,185,445 N @,512
G R(48,<8:,;18
/0%lanation*
As the graph is sho$ing that the de%t to tangi%le net $orth ratio is increasing. &rom 2008
to 200@ it slightly increased %ut from 200@ to 2005 it rapidly increased due to the increase
in de%t. Ao the -2 has not .et 0angi%le .et ,orth to cover the :e%t.
Total ca%itali>ation Ratio
'1
?ong 0erm :e%t
0otal *apitali=ation )atio Q
?ong 0erm :e%t P AhareholderOs 6Buity
QR(4"8,248,158/ R(4'8,455,12'
Q 04<<!" Ti'e(
QR(455,5@1,@12/R(4 @0,845,2@4
Q 04<=;0 Ti'e(
QR(4 '8,@55,204/ R(451,@48,155
Q 04"0!; Ti'e(
?on& Ter' )ebt Q :eposit and other account P ?ia%ilities against assets su%(ect to
finance lease P :eferred ta/ lia%ilities P other lia%ilities
Iorkin&
For !00;
?on& Ter' )ebt Q "5,550,585P 2"185P245,818P 4",50'
G R(48;,!";,1:;
Q "8,248,158/ 1"8,248,158P10,855,4853
Q "8,248,158/ '8,455,12'
For !00<
?on& Ter' )ebt Q 5",214,4@"P"0815P2,205,5"0P115,54'
G R(4::,:<1,<1!
Q55,5@1,@12/ 155,5@1,@12 P 15,128,58@3
Q55,5@1,@12/ @0,845,2@4
For !00=
?on& Ter' )ebt Q'8,555,@40P14554P0P 1@4,580
G R(49;,<::,!0"
Q '8,@55,204/ 1'8,@55,204P 5,0'0,4'43
G '8,@55,204/51,@48,155
'2
/0%lanation*
0he total capitali=ation ratio compares the total de%t $ith the sum of de%t and eBuity. 0he
lo$ capitali=ation ratio indicates the financial fitness of the firm. According to the graph,
# can see that the ratio in 2005 is higher. #n 200@, it $as at the lo$est level in selected
years.
Profitabilit- Ratio(
rofita%ility ratios measure the earning a%ility of the firm. &ollo$ing ratios are
calculated:
.et rofit 7argin
)eturn on Assets
:uont )eturn on Assets
2perating #ncome 7argin
)eturn on operating Assets
)eturn on 0otal 6Buity
+ross rofit 7argin
Net Profit Mar&in
Net Profit G rofit after 0a/ation
Total Re1enue Q 7ar!up/ return/interest earned
'"
Net Profit Mar&in G Net Profit B Total Re1enue
Q R(4",50',255 / R(411,8'",48"
G 8!4;<M
Q R(4','5',015 / R(4 1@,5"4,5"5
G !:48"M
Q (R(410,05',4'03 / R(41@,@52,852
G D:;4=1M
Iorkin&
For !00;
Net Profit G R(48,=09,!::
Total Re1enue Q R(411,;98,";8
For !00<
Net Profit G R(49,9:9,01=
Total Re1enue G R(41<,:8",:8=
For !00=
Net Profit G R(4D10,0=9,"90
Total Re1enue G R(41<,<:!,;:!
/0%lanation*
''
0he net profit margin is declining from 2008 to 2005, as sho$n in graph. #n 2008 the net
profit margin is "2.8@R $hich is higher in selected three years. After this it start to
decline and in 2005 0he -an! of un(a% has to %ear a loss.
Return on +((et(
Total +((et( Q +iven in the -alance Aheet

R3+ G Net 2nco'e B Total +((et(
Q R(4",50',255 / R(418',555,1"@
Q 2."1R
Q R(4','5',015 / R(42"',440,8@5
Q 1.545R
Q 1R(410,05',4'03/ R(4155,542,4@"
Q C5.'25R
Iorkin&
For !00;
Net Profit G 8,=09,!::
Total +((et( G 1;9,=::,18<
For !00<
Net Profit G 9,9:9,01=
Total +((et( G !89,""0,;<:
For !00=
Net Profit G 10,0=9,"90
Total +((et( G 1=:,="!,"<8
'5
/0%lanation*
#t is simple )eturn on Assets, $hich calculate through net income, and total assets %ut the
result is same as in :uCont )2A. #t is sho$ing the consistent decline in the return on
Assets.
)uPont Return on +((et( Ratio
Total Re1enue Q 7ar!up/ return/interest earned
Total +((et( Q +iven in the -alance Aheet

)uDPont R3+ G (Net 2nco'e B Total Re1enue 0 (Total Re1enue B Total +((et(
Q 1",50',255/11,8'",48"3 /
111,8'",48"/18',555,1"@3
G !481M
G 1','5',015/1@,5"4,5"53 /
11@,5"4,5"5/2"',440,8@53
G 14="9M
G 1C10,05',4'0/1@,@52,8523
/ 11@,@52,852/155,542,4@"3
G D:49!:M
Iorkin&
For !00;
Total Re1enue Q 11,;98,";8
Total +((et( G 1;9,=::,18<
For !00<
Total Re1enue G 1<,:8",:8=
Total +((et( G !89,""0,;<:
'8
For !00=
Net Profit G D10,0=9,"90
Total Re1enue G 1<,<:!,;:!
Total +((et( G 1=:,="!,"<8
/0%lanation*
:uont )2A Analysis is the approach to calculate the )eturn on Assets %y ta!ing .et
#ncome, 0otal )evenue and 0otal Assets. #t sho$s the effect of revenue on the net income
and the total assets. ,hen $e calculate the :uont )2A of -2, $e find consistently the
decline in the return on assets. .et rofit 7argin is :eclining on the other hand the total
Asset $ere not generating enough revenue. 0herefore, the )eturn on Assets decline in
2005 and it goes to negative.
3%eratin& 2nco'e Mar&in
3%eratin& 2nco'e Mar&in G /arnin&( Before ta0 K intere(t e0%en(e( B Total Re1enue
QR(4',@85,@21/R(411,8'",48"
Q 904":M
QR(4',555,584/R(41@,5"4,5"5
Q !<4;=M
Q1 R(42,''",'13/R(41@,@52,852
Q D148<;M
Iorkin&
'@
For !00;
/arnin&( Before ta0 G 9,<;=,<!1
Total Re1enue Q 11,;98,";8
For !00<
/arnin&( Before ta0 G 9,=::,:;"
Total Re1enue G 1<,:8",:8=
For !00=
/arnin&( Before ta0 G D1;,=:=,891
Total Re1enue G 1<,<:!,;:!
/0%lanation*
+raph sho$ a decline in the revenues. #n 2008 -2 generate enough revenue %ut in 2005
the provision pf non performing loans decline the profit even it $ent in negative $hich is
C4'.48R.
Return on 3%eratin& +((et(
3%eratin& +((et( G *ash and -alance $ith 0reasury -an!s P -alance $ith other
-an!s P?ending to &inancial #nstitution P Advances P 2perating
fi/ed Assets
'5
Return on 3%eratin& +((et( G /B2T B 3%eratin& +((et(
G R(4 ',@85,@21B R(41"",012,'84
G 84:=M
G R(4',555,584BR(4155,@"4,588
G 841!M
G R(4 D18,555,"'1/R(.1'5,842,@48
G D11488M
Iorkin&
For !00;
/arnin&( Before ta0 G R(4 9,<;=,<!1
3%eratin& +((et( G 1',05',554 P ",@22,054 P11,5'8,52"K101,"14,45'P2,085,@''
G R(4188, 01!,9;"
For !00<
/arnin&( Before ta0 G R(4 9,=::,:;"
3%eratin& +((et( G 1',210,"02 P 1,42@,882 P 2,'50,000 P 1"",544,1'" P ",252,@54
G R(41::, <8",=;;
For !00=
/arnin&( Before ta0 G R(4 D1;,=:=,891
3%eratin& +((et( Q 10,855,05@ P 2,1@5,'55 P 8"","""P1"1,@2',11"P",'@1,5"5
G R(419=, ;"!,<";
'4
/0%lanation*
As the )eturn on 2perating Assets from year 2008 to 2005 is: ".55R, ".12R and
C11.""R respectively. As for as inde/ analysis concern return on operating assets has
%een an decreasing from 2008 to 2005.it is much %elo$ standard in %an!ing industry.
Return in Total /Auit-
+1era&e $tockholder /Auit- G $hare Ca%ital K Re(er1e( K EnDa%%ro%riated Profit
R3/ G (Net 2nco'e B +1era&e $tockholder /Auit- L 100
QR(4",50',255/R(410,855,485
Q 8:4;"M
QR(4','5',015/R(415,128,58@
Q !"49:M
Q1R(410,05',4'03/R(45,0'0,4'4
Q D!0040;M
Iorkin&
For !00;
+1era&e $tockholder /Auit- Q 2,402,'40P',5"@,2"2P",214,2'8
G 10,;:=,";=
For !00<
+1era&e $tockholder /Auit- Q ',2"0,"@4P @,'2@,2"2P ",'52,5'2
50
G 1:,110,9:8
For !00=
Net Profit G D10,0=9,"90
+1era&e $tockholder /Auit- Q 5,25@,4@'P@,'2@,2"2P1C@,8@',25@3
G :,090,"9"
/0%lanation*
)eturn on 2$ner;s 6Buity in the year 2008 is "5.84R, in the year 200@ is 24."5R and in
the year 2005 is C200.8R $hich sho$s an decreasing trend to a lesser e/tent from year on
year %asis as $ell as it is not meet the standard of %an!ing industry.
Gro(( Profit Mar&in
Gro(( Profit Mar&in G (Gro(( Profit B Total Re1enue L 100
QR(4',0@0,2'1/R(411,8'",48"
Q 894";M
QR(4",800,181/R(41@,5"4,5"5
Q !04:8M
QR(41,1"5,852/R(41@,@52,852
Q ;491M
Iorkin&
+ive in the rofit and ?oss Account
For !00;
51
Gro(( Profit G .et mar!up/interest income G R(4', 0@0,2'1
Total Re1enue G 7ar!up/ return/interest earned G R(411, 8'",48"
For !00<
Gro(( Profit G .et mar!up/interest income G R(4", 800,181
Total Re1enue G 7ar!up/ return/interest earned G R(41@, 5"4,5"5
For !00=
Gro(( Profit G .et mar!up/interest income G R(4 R(41, 1"5,852
Total Re1enue G 7ar!up/ return/interest earned G R(4 1@,@52,852
/0%lanation*
52
0his ratio also sho$s the decline in revenue of -2. #n 2008 it nearly "5R %ut after 2008
it start to decline and in 2005 it merely 8.'1R. -ecause the revenue of the -2 declines
so the +ross rofit automatically decline.
+cti1it- Ratio(
Activity ratios measure a firm;s a%ility to convert different accounts $ithin their %alance
sheets into cash or sales.

0otal Assets 0urnover
&i/ed Assets 0urnover
Total +((et( Turno1er
Total +((et( Turno1er Ratio G 2ntere(t or Marku% B Total +((et(
QR(411,8'",48"/R(418',555,1"@
Q 040<1 times
QR(41@,5"4,5"5/R(42"',440,8@5
Q 040<: times
QR(41@,@52,852/R(4155,542,4@"
Q 040": times
Iorkin&
+ive in the rofit and ?oss Account and -alance Aheet
For !00;
Marku%B returnBintere(t earned G R(411, ;98,";8
Total +((et( G R(41;9, =::,18<
For !00<
Marku%B returnBintere(t earned G R(41<, :8",:8=
Total +((et( G R(4 !89,""0,;<:
For !00=
Marku%B returnBintere(t earned G R(41<, <:!,;:!
Total +((et( G R(4 1=:,="!,"<8
5"
/0%lanation*
0otal Asset turnover ratio measures the firm;s effectiveness in generating the revenue
from its investments in total assets. 0he graph is sho$ing the increase in the total assets
turnover ratio. -ut its not real gro$th %ecause $hen $e analy=e the &inancial Atatements
of -2 $e find that in 200@ the income and assets increased so the ratio also increased
%ut in 2005 income decreased $hereas the assets decrease $ith more ratio. Ao this factor
caused the increase in the total assets turnover in 2005.
Fi0ed +((et( Turno1er
Fi0ed +((et( Turno1er Ratio G 2ntere(t or Marku% B Fi0ed +((et(
QR(411,8'",48"/R(42,085,@''
Q :4;8 ti'e(
QR(41@,5"4,5"5/R(4",252,@54
Q :48" ti'e(
QR(41@,@52,852/R(4",'@1,5"5
Q :411 ti'e(
Iorkin&
+ive in the rofit and ?oss Account and -alance Aheet
For !00;
2ntere(t or Marku% G R(411, 8'",48"
Fi0e( +((et( G 2perating &i/es Assets G R(42, 085,@''
For !00<
2ntere(t or Marku% G R(41@, 5"4,5"5
Fi0e( +((et( G 2perating &i/es Assets G R(4", 252,@54
5'
For !00=
2ntere(t or Marku% G R(4 R(41@, @52,852
Fi0e( +((et( G 2perating &i/es Assets G R(4", '@1,5"5
/0%lanation*
0he fi/ed asset turnover ratio measures the companyOs effectiveness in generating sales
from its investment in fi/ed assets. 0he graph sho$s the decline in fi/ed assets turnover.
#t means that the generation of revenue on the fi/ed assets is declining. 0he -an! of
un(a% is not using its fi/ed assets effectively.
Market Ratio(
7ar!et ratios are commonly used %y the investors to access the performance of a
%usiness as an investment and also the cost of issuing stoc!.
:ividend per share
6arning per Ahare
rice / 6arning )atio
)i1idend %er (hare
)i1idend %er (hare G )i1idend %aid to $hareholder( B Nu'ber of (hare( out(tandin&
55
Note* Bank of Punjab ha( not %aid di1idend (o thi( ratio i( not calculated
/arnin& Per $hare
/arnin& Per $hare G Net 2nco'e B +1era&e No4 of $hare( 3ut(tandin&
QR(4",50',255,000/R(4254,802,"85
Q R(418419
QR(4','5',015,000/R(4'2",0"@,401
Q R(4104:8
Q1R(410,05',4'0,0003/R(4525,@4@,"@8
QR(4(C1"40< 3
/0%lanation*
0he earning per share $as 1".1' in 2008, $hich decrease in 200@, and $as 10.5". -ut in
2005 due to loss the dividend per share $ent in negative its mean that in 2005
shareholders have to %ear a loss.
Price B /arnin& Ratio
Price to /arnin& Ratio G Market Price %er $hare B /arnin& %er $hare
Q 101 / 1".1' Q 4@.55 / 10.5" Q 1".20 / C14.0@
58
Q R(4@.84 Q R(44.24 Q R(4( C8.50
Re%re(entation*
/0%lanation*
0he /6 ratio $as @.84 in 2008. #n 200@, it increased due to the decline in mar!et price so
the shares of -2 loo! more attractive in 200@ %ecause the /6 ratio is higher %ut in 2005
as $e already have seen in :A and 6A calculation the /6 ratio $ent in negative. #n
2005, -2 has to %ear a loss so the :A and 6A declined so the /6 ratio $as also
decreased
Future Pro(%ect( of the 3r&ani>ation
0he success and gro$th of -an! of un(a% depends on the +overnment;s political agenda
and its efforts to %ring a%out a greater degree of optimism amongst investors and %usiness
community.
5@
0he prevailing money mar!et scenario $ith e/tremely lo$ rates of interest and stagnant
private sector credit is a serious hurdle for %an!ing sector in a!istan. 0his situation $ill
force %an!ing sector to shift their focus from conventional %an!ing approach to retail
%an!ing. -an!ing ta!ing lead in this shift process $ill %e least affected %y the prevailing
unfavora%le interest rate scenario.

0he mission to transform 0he -an! of un(a% into a moderni=ed %usiness oriented
organi=ation is sailing smoothly and in this direction %y no$ computeri=ation of 2'"
%ranches has %een completed successfully. -an! of un(a% has decided to fi/ facility of
A07 at its selected %ranches for $hich it has (oined hands $ith 7*-.
-an! is highly !een to offer the facility of inter %ranch %an!ing services $ithin year
2011.
Conclu(ion
#nternship is an interesting program, $hich gave me the practical touch of the %an!ing
field. 0hrough this, # learnt that $hat is the %an!ing and its activities. # learnt from the
%an! officer and understood the operations of %an!ing. 0his training program enhanced
my !no$ledge a%out the %an!s.
55
)atio analysis sho$s that the year 2005 pro%lematic for the -2. As in this year, -2
has to %ear the loss. 7ain reason of this loss is the nonCperforming loans and the other as
$ell as >amish Jhan scandal. 0he other reason is increasing de%t. :ue to this, the %an!
has to pay more interest on the de%t. 0his factor increased the interest e/penses. #n 2005
the 6A and :A more declined so the /6 ratio also declined so the Ahares of -2 $ere
not attractive for the investors. 0herefore, the -an! of un(a% has to %ecome dependent
on the de%t.
0he administrative e/penses almost 80R increased from 2008 to 2005. #t seems that the
management of the -2 almost fails to overcome the administrative e/penses. 0his thing
also decreased the profit.
0he investments, $hich are the part of earning assets, also decline. 0herefore, the sources
of the other income also decreased.
Almost 40R %ranches of -2 are located in un(a% even in Jarachi the hu% of economic
activities of a!istan only 11 %ranches. 0herefore, the mar!et coverage of -2 is much
lo$er. 0he political factor cannot %e avoided in this regard %ecause the +overnment of
un(a% holds the ma(ority of the shares so the government intervenes in the %an!
activities.
Reco''endation( for 2'%ro1e'ent
An organi=ation considered to %e luc!y $hose %ad de%ts are recovered, the %an! of
un(a% having too much %ad de%ts due to preference of loans to dictators.
7y opinion to raise the profit of -2, first they recover their %ad de%ts. #f they do it,
0hen their profita%ility ratio $ill e/ceed.
54
#n my analysis, -2 consumes their operating incomes as regarding the year 2005. # $ill
not say to close their costs %ecause these are not to %e closed %ut these are to %e reduced.
According to statements of 2005, in -an! of un(a% having no much shares of investors.
0he %an! of un(a% depends on the de%t, $ho improves the price to earnings ratio. &or
the life of the %an!, the upper management $ill ma!e some strong strategies, $ho
compete it from the competitors. #n my internship program, # see mostly the persons of
government (o% holders ma!e their accounts in the %ranch.
.o much account of social individuals are come to open their account in the %an!.
0herefore, my opinion is to motivate the individuals to open their accounts in -2.
0o %ecome profita%le the -2 should overcome its nonCproductive e/penses. #ts
management has to ta!e effective decision to reduce its administrative e/penses. 0he
%an! has to control the nonCperforming loans, $hich are the main reason of this heavy
loss in 2005.
As name sho$s, D-an! of un(a%E refers to the un(a% provision only, and a head office
in Jarachi 1Aindh3. #t is essential for -2 to ma!e its %ranches in the $hole country of
a!istan %ecause the competitors are spread over the country.
0his is very important for -2 to reduce the operating cost. 0herefore, the operating
profit $ill increase. 0he management of -2 should focus on shortCterm deposits.
Biblio&ra%h-
&or the analysis and the %rief history of the -an! of un(a%, his financial Atatements, #
attain data %y using internet from different $e%sites, in $hich,
80
>istory of 0he -an! of un(a% )etrieved 10 9une 2011 from -an! of un(a% $e% site
https://$$$.%op.com.p!/A%outUs.asp/
roduct :etail. )etrieved 15 9une 2011 from -an! of un(a% $e% site
https://$$$.%op.com.p!/roducts.asp/
Annual )eport, )etrieved 20 9une 2011 from -an! of un(a% $e% site
https://$$$.%op.com.p!/&inancial/AnnualAccounts.asp/
-2 &inancial Atatements 2008
-2 &inancial Atatements 200@
-2 consolidated )eport 2005
-an!ing )atios, 2%tained from the site:
http://$$$.investopedia.com/features/industryhand%oo!/%an!ing.asp
81

MRK Spring2011 FINI619 BankofPunjab

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