Download - ZTBL interenship Report by Fakhr-e-alamkhan
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CHAPTER 1
INTRODUCTION
1.1 BACKGROUND OF STUDY
The Zarai Taraqiati Bank Limited is the premier financial institution geared
towards the development of agriculture sector by providing financial products and
services to their customers. It is a common practice at universities during the
completion of the masters and bachelors program to attain practical experience in
different fields. Students are required to undergo an internship program of two months
to fulfill the requirement for their degree completion. The selection of the firm is
based on the choice of the student. The institute requires an internship report based on
the theoretical and practical learning of the student.
The Internship is the bridge between academic qualification and professional
career of fresh graduates”. This internship report is mainly focused on the working of
the Finance division of ZTBL. Moreover, the internship is a unique aspect of
education that integrates study with planned and supervised career-related work
experience. The students are involved as non-paid “authentic employees” receiving
academic credit for work experiences. The purpose of the internship program is to
develop and strengthen the student’s educational and career preparation. By doing
internship in any organization obviously exposes the interpersonal relationships not
only with employees but also with supervisor that are essential in obtaining a
successful and satisfying career.
1.2 PURPOSE OF THE STUDY
The purpose of conducting this study is to develop some insight into the
working of the Finance division of ZTBL and to gain the experience regarding the
overall operations and procedures of the bank, in order to complete the BBA (Hons)
Finance, degree as well. The purpose of the internship program is to develop and
strengthen the student’s educational and career preparation, which they gain from
university. Another important aspect of the internship program is that internee is
placed to various departments. It provides a glance of each department, as the period
is too short for learning in detail. Other objectives of the study are as follows:
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1. To gather relevant information then interpret and analyze it in a useful
manner.
2. To highlight the facilities and products offered by the ZTBL to its customers.
3. Internship can develop good work habits and to reduce student dropouts.
4. To develop, enhance and strengthen the communication skills.
5. To observe and participate in a professional work situation which represents
an area of career interest.
6. To develop an understanding of the organization, its mission, objectives and
management philosophy.
7. To acquire good work habits and gain an awareness of the community’s vastresources.
8. To be responsible and work toward specific achievable goals.
9. To analyze the bank through different analysis such as Ratio & SWOT
analysis.
1.3 SCOPE OF THE STUDY
The scope of the conducting this study is given as under;
1. It is a compulsory requirement for the award of Bachelor’s Degree in Business
Administration from the IBMS KP, Agricultural University Peshawar.
2. This report is concerned with the performance, functions and objectives of the
“Finance Department of the ZTBL” Chota Lahore Branch Swabi.
3. It will help the students in making assignments and writing reports on the
ZTBL.
4. It can provide help to the management of the ZTBL in identifying their
Strengths, Weaknesses, Opportunities and Threats.
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6. It can provide help to the management of the ZTBL in recruiting, selection,
training and performance evaluation.
1.4 METHODOLOGY OF RESEARCH
During the internship at the ZTBL Chota Lahore Branch Swabi, the most
important task was to collect as much as information on the bank in order to have a
full productive report. For the collection of information and data, I used two methods
which are given as under;
Primary Data Collections: In primary data collection method, I interviewed different
officers for this purpose. The interviews were not of formal nature but it went along
with time and the questions arose with identification of problems. I prepared many
questions and discuses with Bank officers asked all the detailed function and
procedures of there departments. All officers fully cooperated with me and provided
all the necessary information which was required to me. The interviews have been
taken from the bank officers and also the discussion was conducted with the heads of
different departments. For collecting primary data, I use my own observation and
discuss my problems with previous internees.
Secondary Data Collection: The data that are previously collected and assembled
for the some projects other than the one at hand. It is also called as historical data.
This method can almost always be gathered faster and at a lower cost than primary
data. The secondary data is collected from following sources;
7. Annual Reports & Accounts manual.
8. ZTBL web site & Internet.
9. Brochures.
10. Pamphlets.
11. Newspapers.
12. Business journals.
13. Books.
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1.5 SCHEME OF THE REPORT
The internship report on the Finance of the ZTBL is arranged in 6 chapters. The
report is arranged in the following sequence.
Chapter 1:
This is an introductory chapter which describes the introduction, background,
purpose, scope, research methodology, limitations and scheme of the report.
Chapter 2:
This chapter includes brief history of ZTBL, nature of ZTBL, business volume,
product lines, competitors, and brief introduction of the branch where I did my
internship.
Chapter 3:
This chapter briefly describes the hierarchy chart of ZTBL, numbers of employees,
main offices of ZTBL and introduction of the finance department of ZTBL and its
functions.
Chapter 4:
This chapter is concerns with the comparison and evaluation of the current strategies
of ZTBL. It also includes comparison of our theoretical concepts and current
strategies carried out by ZTBL.
Chapter 5:
This chapter describes the SWOT analysis of ZTBL.
Chapter 6:
This chapter describes conclusion and recommendations about the ZTBL.
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CHAPTER 2
OVERVIEW OF THE ORGANIZATION
2.1 BRIEF 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 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 on 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 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 ADPB were transferred and vested in the ZTBL
on 14th December, 2002 by the Federal Government.
2.2 NATURE OF ZTBL
The main purpose of the ZTBL is to provide sustainable rural finance and
services particularly to small farmers and low-income households to strengthen the
rural and agricultural sector, mitigate poverty, capital market and investment activities
and other banking business.
Products and services
1. Supervised Agricultural Credit Scheme
2. Deposits (Fixed, Saving, Current Accounts & Zarai Bachaat Scheme)
3. Micro Credit Scheme
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4. Credit to Women Program
5. One Window Operation
6. Revolving Finance Scheme (RFS)/Sada Bahar Scheme (SBS)
7. Crop Maximization Project
2.3 BUSINESS VOLUME OF ZTBL
Zarai Taraqiati Bank Limited (ZTBL) has recovered 89 percent of agriculture
loans in 2010 against 86 percent in 2009 and 81 percent in 2008 respectively.
Recovery of agriculture loans of the Bank stood at Rs 69.5 billion during 2010 against
Rs 58 billion and Rs 65.9 billion during 2008 and 2009 respectively. During the year
2010 loans amounting to Rs 77.6 billion were disbursed as compared to Rs 55.9
billion during the year 2008 with a 26 percent growth. While, Rs 70.6 billion loans
were disbursed in the year 2009.
For the calendar year 2010 ZTBL had planned a credit target of Rs 75 billion
against which loans of Rs 77.6 billion have been disbursed with a pace of 104 percent
by the end of the year 2010. By this the bank not only achieved the given target but
surpassed with a margin of about Rs 2 billion.
The non-performing Loans (NPLs) indicate a very significant indicator
depicting intrinsic health of the financial institution in banking sector. In ZTBL NPLs
were 29.4 percent of portfolios at the beginning of year 2008, which has significantly
reduced to 14.4 percent at the end of 2010. The reduction in cumulative NPLs by the
extent of 14.9 percent is excellent, which brought it to the lowest level.
ZTBL is extending its all out efforts to enhance the deposit volume to strengthen its
resources for the maximum coverage of credit needs of the farming community.
Although it was increased from Rs 4.3 billion in 2008 to Rs 8.8 billion in 2010 with
over 100 percent growth.
The profit of ZTBL stood at Rs 4.9 billion in 2010 against Rs 3.9 billion and
Rs 1.7 billion during 2009 and 2008 respectively. The agriculture credit provision to
the borrowers has increased to 567, 415 borrowers in 2010 as against 475,000 in
2008.
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As tractor plays important role in productivity enhancement as well as
transportation so special emphasis was given on tractor financing, which was
increased to 21,609 during 2010 as compared to 10,275 in 2008.
For the first time in the history of the bank, steps were taken to arrange
enlisting the bank for receipt of Hajj applications and bank successfully handled the
Hajj Operations 2009 and earned profit of Rs 4 million. The Deposit Solicitation has
been activated and expected to achieve Deposit Target of Rs 50 billion till 2012.
2.4 PRODUCTS & SERVICES OF ZTBL
ZTBL has provided many products and services for their customers. The
product and services of ZTBL can raise the living standards of rural areas and develop
the agriculture sectors of a country as well. Pakistan is an agriculture country and the
products and services of ZTBL plays very important role in increasing the GDP and
accelerates economic growth. For this purpose, ZTBL provides many facilities for
their customers, such as provides schemes and loans, obviously help the customers to
invest money in their businesses, to get maximum profit from it and to pay low
interest rates.
2.5 SCHEMES OF ZTBL
The ZTBL provides various schemes for customers, in order to strengthen the
rural and agricultural sector of econnomy, mitigate poverty and accelerate growth.
The Schemes of the ZTBL are briefly explained as under;
a. Sairab Pakistan Scheme
The ZTBL can raise the irrigated area for the purpose to accelerate the rate of
economic growth and to facilitate the farmers. The ZTBL has assigned the
collaboration agreement with the KSB Pumps Company Limited under the Sairab
Pakistan Scheme. The ZTBL will provide loans to the farmers for installation of tube
wells and turbines whereas KSB Pumps Company Limited will provide quality
pumps, turbines and equipments to borrowers for efficient pumping of waters. The
water can plays vital role to improve per acre yield. Out of total 31 million hectors
area of the Pakistan, 22 million hectors is cultivated while 9 million hectors is not
cultivated & waste mainly due to non-availability of water. More over increase in
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water supply being a key input is required to raise cropping intensity and hence the
income of the farmer. Since inception the ZTBL financed over 143000 tube wells
amounting to Rs.15 billion. The KSB Pumps Company will provide quality
machinery and equipments for efficient pumping of water. The company will also
provide after sale services including replacement of parts and availability of spares
through its network of dealers. Despite technological advancements and rapid growth
of industrial sector, agriculture is still the back bone of the Pakistan's economy. It
contributes 22% towards the GDP and employs nearly 45% of country's labor force.
b. Supervised Agriculture Credit Scheme
Under this scheme agriculture loans are given for short, medium and long term
up to Rs.1 million per borrower. The loans are sanctioned for fats, livestock, orchard,
tractor, agricultural machinery, tube well and irrigation facilities. Under the scheme
besides provision of credit, information are given to the farmers for planning the farm
production, guidance for implementation of the scheme, marketing and repayment of
loans.
c. White Revolution Scheme
In order to modernize the dairy farming for increasing milk supply, mitigate
poverty and improving the living standards of the rural areas in Pakistan for the
purpose to achieve growth and development in agriculture sector of Pakistan, the
ZTBL may start the “Strategic Partnership” agreement with the Pakistan Dairy
Development Company (PDDC) and the Nestle Pakistan Limited (NPL) under the
white revolution scheme. Under this participatory approach, the diary sector would be
modernized with a view to increase milk supply, mitigate poverty and improve the
living standard of the rural population. The ZTBL has earmarked funds to the tune of
Rs.5000 millions for financing of 50,000 animals (buffaloes and imported cows)
during the five years period 2007 to 2011. The PDDC will also help the ZTBL in the
selection of clients and processing of loan cases. Initially the schemes will be for
modernization of 5000 farmers during 5 years period involving Rs.700 million.
The Nestle Pakistan Limited would help to select and identify good clients for
the ZTBL to improve quality breed of foreign and local dairy animals. The NPL can
provide technical guidance to the farmers through nestle veterinary doctors. The NPL
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would purchase milk through its network and make weekly payments of milk sale to
the ZTBL for the adjustment of loan.
d. Micro Credit Scheme
This Scheme has been launched since 15th July, 2000 for the uplift of rural
poor. The landless poor such as; tillers, harries and small land owners having land not
exceeding 2 acres may avail loan under Micro Credit Scheme. It is operational in all
branches of the ZTBL through all the Mobile Credit Officers. Both men and women
may obtain loans under the scheme as an individual or as a member of group of 5-10
members. The minimum credit limit is Rs. 5,000 while maximum credit limit is
Rs.25, 000. The loan may be advanced against one surety with 50% solvency of the
assessed value of property owned by the guarantor or security of tangible property.
Being small loans involving high cost 18% per annum mark-up is charged, whereas
2% rebate is given on timely repayment. All loans under these Schemes are
recoverable within 18 months after disbursement of loan.
e. Zarkhaiz Scheme (One Window Operation)
For timely and conveniently provision of credit to purchase inputs, loans are
provided to the borrowers under this scheme being conducted twice a week during
Rabi & Kharif seasons. All the related departments such as revenue, agriculture, post
office….etc attend the focal points which are established at convenient places. The
farmers get their pass books prepared and loan 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.
f. Sada Bahar Scheme
For providing timely input loans for crops and working capital for poultry and
fishery etc, the ZTBL has launched a Sada Bahar Scheme. This scheme is also known
as “Revolving Finance Scheme”. The 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.5 Lake. The salient features of the
scheme are given as under:
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1. Revolving Credit Limit is fixed to cater production credit and ancillary
requirements of the farmers during one year period.
2. The borrowers can draw the credit in lump sum or in installments according to
his requirement.
3. The borrowers can repay in lump sum or in installments during the year when
his cash position allows him.
4. The Pass Book containing transactions in his account is supplied to every
borrower free of cost.
g. Tea Financing Scheme
In order to increase the tea cultivation in Mansehra, Swat, Mutta and Dir in
Malakand Division, the tea financing scheme has been introduced which would not
only save the hard earned foreign exchange but would also help to improve the socio-
economic condition and living standard of the inhabitants of the area. The salient
features of the scheme are given as under:
1. The maximum credit ceiling of Rs.60,000 per acre has been fixed.
2. All the farmers owing land up to five acres are eligible to avail loans.
3. The amount of credit will be given in three installments; the first year
installment is Rs.30,000, second year installment is Rs.15,000 and third
installment is year Rs.15,000.
4. The credit would be repayable within 11 years with 6 years grace period with
prescribed markup of 9% per annum.
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2.7 COMPETITORS OF ZTBL
The main competitors of ZTBL are as under:
1. Commercial Banks
These banks are engaged in performing the routine duties of banking business.
They collect surplus money from the people. They make loans and advances in the
form of overdrafts, cash credits, discounting bills of exchange. The commercial banks
also manufacture credit money. They also provide agency services and general utility
services. These banks are considered the lifeblood of the economic society. Some
commercial banks are owned and controlled by the government which is called as
public sector banks. For e.g., NBP, HBL, UBL…etc while other commercial banksthat are owned by corporations is called as private sectors banks. For e.g., MCB,
ABL, City Bank…etc.
2. Exchange Banks
As name signifies, these banks mainly deal with international trade. These
banks take the responsibility of settlement of foreign exchange and arrange the
foreign business. In Pakistan, all the nationalized commercial banks have been
allowed to do the business of exchange banks.
3. Saving Banks
Saving banks are those banks which collect and keep the small savings of the
public. They are called also thrift promoting institutions. The saving banks invest the
funds in the safest government securities. The Post offices and saving centers perform
the business of saving banks in Pakistan.
4. Industrial Banks
The industrial banks mainly provide medium and long term credit to the
industries. Since the industrial banks have long term deposits, they are in a position to
permit long term investment in industries. In Pakistan, the Industrial Development
Bank was set up in 1961. The other institutions engaged in providing financial
assistance to industries are PICIC, NDFC….etc.
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2.8 BRIEF INTRODUCTION OF THE BRANCH WHERE I DID MY
INTERNSHIP
As I mention above that ZTBL have multiple branches throughout Pakistan so I did
my internship in the ZTBL Chota Lahore Branch, Swabi this branch is located at the
Chota Lahore. This branch provide all the financial facilities to the all the residence of
that area. Like the other branches of ZTBL it also provides the deposit facilities and
advancing loans to its loyal customers. It also provides the remittances, online fund
transfer and cheque clearance facilities and have approximately more then 3000
Account holders. In the staff of this branch includes Manager, Operation manager,
computer operation officer, clerical staff, cashiers and non managerial staff.
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CHAPTER 3
ORGANIZATIONAL STRUCTURE
3.1 ORGANIZATIONAL HIERARCHY CHART OF ZTBL
The organizational hierarchy chart of the ZTBL is shown in below diagram;
Fig. 3.1
3.2 NUMBER OF EMPLOYEES IN ZTBL
The ZTBL has a subsidiary which is known as the “Kissan Support Services
Limited”. It was incorporated as owned subsidiary of the ZTBL that function
independently effective from 1st January 2006. The KSSL is a separate and distinct
legal entity that is controlled by the ZTBL. The KSSL has an authorized capital of
Rs.100 million. Its aim is to provide a support to the management of the ZTBL such
as to focus on core banking business and assign non-core activities. The KSSL
operates under the Memorandum and Article of Association.
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The KSSL has recruited and developed support staff of following table
categories in ZTBL, Head Office as well as in field offices;
Table 3.1 Number of employees
S.No. Category of Employees Provided No. of Employees
01 Darbans and Armed Guards 52602 Drivers 29103 Naib Qasids 5404 Mali / Beldars 2505 Typists, Assistants & Senior Assistants 4106 Security Supervisor 0307 Sweepers 0708 Players 2009 Others 15
Total 982
3.2.1 Board of Directors
The ZTBL has one chairman, one president and ten directors. The seven
meetings of the board are held during each year. The main responsibility of the BOD
is to establish and maintain a system of internal control, prepare and present the
financial statements with approved accounting standard and requirement of the
‘’Banking Companies Ordinance, 1962’’ and the “Companies Ordinance 1984”. Thenew corporate structure redefines the bank's status as the Public Limited Company
registered under “Companies Ordinance 1984”, with an independent BOD which aimsat ensuring good governance, autonomy, delivering high quality. The list of the BOD
is given as under;
Table 3.2 List of Board of Director
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3.3 MAIN OFFICES OF ZTBL
In public sector, the ZTBL is largest financial development institution with a
wide network of 25 zonal offices and 342 branches in the Pakistan. The head office of
ZTBL is located in Blue Area Islamabad. The network of the ZTBL Head Office is
given as under;
Table 3.3 Main offices
S.No. Province Zonal offices Branches
1 Punjab 12 159
2 Sindh 6 87
3 KP 4 50
4 Balochistan 3 34
5 Azad Kashmir - 7
6 Festerally Administrated Northern Areas - 5
Total 25 342
3.4 INTRODUCTION OF THE DEPARTMENTS
Control or main Books consist of the following:
i. Day Book.
ii. General Ledger.
iii. Daily cash and transfer transaction scroll.
iv. General Ledger Abstract.
v. Statement of Affairs.
Where the branch are fully computerized, Day Book and General Ledger
are not maintained but are produced by the Computer any how some detail of
these books are as Under.
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3.4.1 Day Book or journal
It is a basic book used in the bank in which all types of daily transaction
are recorded. Transaction made wide Debit Cash Voucher, Credit Cash
Voucher and Transfer Voucher are recorded in Day Book accordingly. In short
it is like a Journal.
3.4.2 General Ledger or Ledger
It collects all the information or transaction from Day Book, which
recorded separately in General Ledger or Ledger. In other words Day Book
transactions are posted to General ledger. It also shows Debit and Credit
position of each loan case or account.
3.4.3 Daily Cash and transfer transaction
It is a Book or Scroll, which shows transaction regarding the
cash/money and other transfer transaction in each and every Account.
3.4.4 General Ledger Abstract or Trial Balance
It is an Account which does not maintained under the branch but it is
provides by the Regional Branch after finished of the week. Under this Ledger
a few account are maintained. It shows the Closing Blanches of each item in
the end of the week.
3.4.5 Statement of Affairs
It is like a General Ledger Abstract and provides by Regional Branch
after the end of each month. It shows the closing balances of each item in the
end of the month. Under this Book all the item are given in detail.
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3.5 SUBSIDIARY BOOKS/ SUPPLEMENTARY LEDGERS
The second categories of books are known as "Subsidiary Books" which
includes: -
3.5.1 Current Account Ledger
It is a book of account used in the bank. This Ledger used for recording
all the transaction of the Current Account. It means that all the transaction of
the opening of Account in the bank is recorded.
3.5.2 Income Account
It is another book in which all the transaction of the income are recorded
occurred during the transaction of the bank.
3.5.3 Expense Account
It is an account, which is used for recording all the expense of the bank,
occurred.
3.5.4 Sundry Deposit Account
It is a kind of Account used in the bank at certain type of money
temporary depositing in sundry Account for specific purpose repaid /adjusted
after fulfillment of same purpose. It is spare pocket of the bank. Amount kept
in Sundry Deposit will be payable i.e. self-contribution, recovery deduct above
the due amount wrongly etc.
3.5.5 Suspense Account
It is a kind of Account, which is used in the bank that the amount
temporary withdrawn for a specific purpose, which is lather on, recovered or
adjusted. Amount of suspense account will be recoverable i.e. advance
payment for training, advance fee, advance bill etc.
3.5.6 Bank Reconciliation Account
It is another book of account maintain in the bank. Normally ZTBL of
Regional Office Peshawar Deposit and withdraw the amount from Muslim
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Commercial Bank Ltd. So this account is maintained to reconcile the passbook
of ZTBL Regional Office Peshawar with the cashbook of Muslim Commercial
Bank Peshawar.
3.5.7 Staff Ledger Account
It is a kind of account used in the bank for maintaining the salary of the
staff of the bank of ZTBL Regional Office Peshawar.
3.6 REGISTERS
In addition to Book of Accounts of Control Books and Subsidiary Books
branch are required to maintained the following Registered: -
3.6.1 Stock Register
It is a registered maintain in the bank for recording all the stationary of
stock in the bank. It shown the position of stationary of consumes and remains
in the stock and regarding this information bank make order for the stationary
to the Head office to deliver these stationary recording to their requirement.
3.6.2 Token Register
In the bank payer are gives a token this token are shown to cashier in
order to make payment to required person. The number of these Token are five.
Token are gives to cheque i.e. (3291 to 3295) and recorded .in the
register is known as Token Register.
3.6.3 Cheques or Receipt Books Register
It is a register used in the bank for the purpose of recording of cheques
or receipt. If Branch received the cheques or receipt then recorded in the
register. These cheque or receipts are issued to account section and MCO
(Mobile Credit Officers). Cheque is issued to account section in order to make
payment to the loany and receipt is issued to MCO in order to received
recovery and received LA fee (loan application fee), LA form and postal
charges. In short all these are recorded in a register is known as Cheques or
Receipt Books Register.
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3.6.4 Payroll Register
It is a register in which the salaries of the staff of ZTBL Regional Office
Peshawar are recorded. In this register all the deduction and addition in the
salary of the staff of the branch are recorded in the details.
3.6.5 Dispatch Register
It is a register which is used for the purpose of recording of all the
dispatched. If the loan are sanction to the farmer than 3 copies of sanction letter
are prepared out of this one copy is send to Regional Manager office, one copy
is send to farmer, one copy is retain in branch for the record of former. So all
these dispatch are recorded an a register is known as Dispatch Register.
3.6.6 Receipt Dairy Register
It is a register, which is used for recording all the receipt of letter.
3.6.7 Balance Book Register
It is a register that is used for the purpose of recording of balance of
Current Account, PLS and Term Deposit Account at the end of each month.
3.6.8 Keys Register
In ZTBL Regional Office Peshawar there are 4 Keys and these keys are
delivering to different employee.
So this register are used for the purpose of recording the key and the
name of employee to whom delivered the key.
3.6.9 Safe File Register
It is a register in which some records of the farmers are kept to whom
the loan sanction. It consists of the information about date of entry on payment,
loan case no., name and full address of the borrowers and total amount.
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3.6.10 Loan Application Register
It is a register that is used for the recording of loan case of the former. It
consist of all the records of the former i.e. date of receipts of application,
amount sanctions, loan case no. And address of the loany or former.
3.6.11 Daily Basis Closing Cash Blanches Register
It is another register in which all the closing cash balances in the end of
the day are recorded. It consists of recording all the currency at the shape of
number.
3.6.12 Cash Safe Register
It is another register used in the ZTBL Regional Office Peshawar. It is
also called night safe register because this register are maintains and recorded
the transaction in the end of the day and at the beginning of day. It consists of
three columns In, Out and balance. If transactions during the day are finished
than it recorded in the In & Balance Columns. On other hand at the beginning
of the day it recorded in the Out column.
3.6.13 Staff Register
It is another register used in the Bank. In this register all the transaction
i.e. Salary Transfer, deposits of cash and withdrawals of cash all these entries
of the bank staff are made in this Register.
3.6.14 Daily Cash Transaction Register
Another register name is daily cash transaction register. It is used for
recording of all the transaction of payment and receipts are made recording
during the day. In this register first of opening balance broad forward are
recorded rather than other receipts and payment.
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3.7 TYPES OF ACCOUNTS AND VOUCHER
3.7.1 TYPES OF ACCOUNTS
The ZTBL used three types of accounts. These accounts are mentioned
below:
1) Current Account.
2) Profit and Loss Sharing Account.
3) Business Deposit Account.
These three types of accounts discussed below in detail one by one.
3.7.1.1 Current Account
Current account is the account that is open by ZTBL from Rs, 500. This
is an account in which account holder has deposit or withdrawals cash at any
time as he wish. The ZTBL does not paid any interest on current account to
account holder because it may be withdrawals at any time. In current account
has no fixed period of time. Current account holder has withdrawals cash at any
time according to the need and demand.
3.7.1.2 Profit and Loss Sharing Account
Profit and loss sharing account is an account that is open by ZTBL from
Rs, 500. PLS account holder has paid interest after six month. Interest depend
upon on the profit of the bank if profit is high interest will be high and if profit
is low interest will be low. In case of loss it also share with account holder
because it name indicate that profit and loss will be shared. PLS has no fixed
duration or time. Account holders of PLS can withdrawals cash at any time as
he wish.
3.7.1.3 Business Deposit Account
Business deposit account is an account that is open by ZTBL from Rs,
10000. The Bank paid interest to the account holder of business deposit
account after six month. Interests on such account also depend upon on profit.
If profit is high interest will be high on other hand if profit is low interest will
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be low. Account holder of business deposit withdrawals cash at any time there
is no fixed duration for deposit.
3.8 VOUCHERS
A voucher being the transaction accounting tools is'an important
document. No Debit\Credit transfer transaction can be effected recorded in the
banks books of accounts unless the respective voucher supports it. Vouchers
preparation\signing\ handing, therefore, warrants special care e.g.
1. To carefully prepare\ check and sign all types of vouchers and ensure
that the following general instructions\ practices are observed in this regard:
a) The officer making vouchers will (as general procedure) be different
from the signing officers". One of the two signing officers of vouchers
must be Manager\ Sub-Manager\ Operation officer.
b) The cashier shall not prepare debit and cash vouchers.
c) The narration of vouchers should be precise but complete.
d) Vouchers regarding debit to loan accounts cash with
banker\expenses\income\suspense\sundry\deposit accounts must be
signed by the manager. The sub-manager shall sign these vouchers in
lieu of manager during his short absence on leave tour observing of
course limitations in accounts manual and subject to subsequent
confirmation by countersignatures (Devolving responsibility of
signatures) of manager.
e) Vouchers\ cheques shall be signed by authorized signatures as per their
passing powers.
f) Before signing vouchers the signing officers shall check all entries and
also ensure that proper and correct codes are incorporated (where
applicable) in the vouchers.
23
g) The carbon papers used while preparing vouchers shall be removed
before signing the vouchers signing officers shall make their signature in
ink on all copies of vouchers.
To ensure that the Word Canceled shall be written on all copies of
canceled vouchers.
To ensure that all the voucher of a day are stitched together along with
daily cash transactions register (ACF-34) sheet under cover of a duly sealed
wrapper and that detail of all vouchers is recorded on face of the wrapper as
well as in vouchers register maintained month\ date-wise and initialed jointly
by operation officer and Manager\ Sub-Manager.
To ensure safe custody of the daily vouchers and also the Dr-Cash
voucher Book not in use which require extra care loss misplacement of
vouchers if any shall be reported procedurally to RM\ HO and duplicate of lost
vouchers shall be reconstructed after permission of head office.
3.9 TYPES OF LOANS
There are many types of loan provided by ZTBL for the development of
agriculture sector in Pakistan.
3.9.1 Production Loan
The main objectives of ZTBL to increase Agriculture production in the
county. There are many types of Loan provided by ZTBL for the boosting of
agriculture production
Known as production loan. Which are discussed below in detail.
3.9.2 Surety Loan
This type of loan provide by the bank for a short period of time. It is also
called short-term loan. It is given for the period of six months. This type of
loan is provided against securities. The maximum limit of short-term loan is
twenty-five thousands. The bank will recover the loan after six months in
24
lumsum with interest. It is payable on the due dates, 7th January and 7th July
every year. It is provided for the purpose of Seeds, Fertilizers and Pesticides.
3.9.3 Secured Loan
This type of loan is provided against the security of agriculture land. It is
also called medium term loan. In this type of loan maximum limit is five laces.
The loan is provided for three years for example revolving loan, revolving
means that it will be renewed after six month.
3.9.4 Land Leveling loan
This type of loan is provided on the basis of Acres. The purpose of this
type of loan is to enable the land for agriculture. This type of loan is providing
for the period of five years and each installment is paid yearly. The first two
years the bank will be received the principle amount of installment but the
farmers cannot pay any interest. The principle amount is divided on the
remaining three years and paid every years.
25
CHAPTER 4
CRITICAL ANALYSIS
This Chapter is about the critical and financial analysis of ZTBL. Financial Analysis
is an evaluation of a firm’s past performance and its prospects for the future. It
consists of applying analytical tools and techniques to financial statements and other
relevant data to obtain useful information. Its main purpose is to give a clear picture
of the financial position of an organization.
It includes Consolidated Statement of Financial Position, Consolidated Profit and
Loss Account Statement, Consolidated Statement of Comprehensive Income,
Consolidated Cash Flow Statement and Ratio Analysis.
These financial statements are responsibility of the Bank’s management. The auditors
responsibility is to express their opinion on these financial statements based on their
audit.
4.1 CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Table 4.1 Consolidated Statement of Financial PositionAssets 2011
(Rupees '000')
2010
(Rupees '000')
Cash and balances with treasury banks 7,969,044 8,836,474
Balances with other banks 1,486,560 2,952,593
Lending’s to financial institutions 14,666,918 6,429,166
Investments 47,786,041 50,209,083
Advances 60,861,513 74,583,584
Operating fixed assets 2,722,863 2,751,703
Intangible assets 3,785,755 4,147,736
Deferred tax assets – net 10,958,166 9,395,264
Other assets 4,588,151 5,251,463
154,825,011 164,557,066
Liabilities
Bills payable 1,738,422 1,335,493
Borrowings 47,382,031 42,361,934
26
Deposits and other accounts 85,472,247 99,111,741
Sub-ordinate loans 3,994,400 3,996,000
Liabilities against assets subject to finance
lease
- -
Deferred tax liabilities - -
Other liabilities 2,574,241 3,866,958
Net Assets
141,161,341
13,663,670
150,672,126
13,884,940
Source: Annual Report 2011
4.2 CONSOLIDATED PROFIT AND LOSS ACCOUNT STATEMENT
Table 4.2 Consolidated Profit and Loss Account Statement2011
(Rupees '000')
2010
(Rupees '000')
Mark-up / Return / Interest earned 14,250,121 16,482,767
Mark-up / Return / Interest expensed
Net Mark-up / Interest Income
12,155,613
2,094,508
13,467,526
3,015,241
Provision against non-performing loans and
advances
2,355,074 9,872,524
Provision for diminution in the value of
investments
178,913 115,134
Bad debts written off directly 15,802 53,359
Non Mark-Up / Interest Income
(2,549,789)
(455,281)
(10,041,017)
(7,025,776)
Fee, commission and brokerage income 1,024,307 977,919
Dividend income 137,055 150,517
Income from dealing in foreign currencies 526,577 469,449
Gain on sale of securities 273,144 307,541
Unrealized loss on revaluation of
investments
classified as held-for-trading
(7,053) -
Other income 22,854 28,348
27
Total Non Mark-up / Interest income
Non Mark-Up/ Interest Expense
1,976,884
1,521,603
1,933,774
(5,092,002)
Administrative expenses 4,823,582 7,055,824
Other provisions / write offs 200,912 158,359
Other charges 42,497 121,918
Workers welfare fund
Total Non Mark-up / Interest expense
(2,101)
5,064,890
859
7,336,960
Share of income of associates 51,278 339,960
Extraordinary / Unusual items
Profit / (Loss) Before Taxation
-
(3,492,009)
-
(12,089,002)
Taxation – Current 202,619 228,733
- Prior years 30,658 385,655
- Deferred
Profit / (Loss) After Taxation
Accumulated loss brought forward
(1,657,864)
(1,424,587)
(2,067,422)
(41,009,961)
(2,996,630)
(2,382,242)
(9,706,760)
(7,081,729)
Accumulated Loss Carried Forward (43,077,383) (16,788,489)
Profit / (Loss) attributable to:
Equity shareholders of the Bank (2,067,422) (9,706,760)
Non-controlling interest -
(2,067,422)
-
(9,706,760)
Basic / diluted Loss per share (Rupees) (0.34) (2.40)
Source: Annual Report 2011
28
4.3 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Table 4.3 Consolidated Statement of Comprehensive Income2011
(Rupees '000')
2010
(Rupees '000')
Profit / (Loss) after taxation for the
year
(2,067,422) (9,706,760)
Other comprehensive income
Total comprehensive income for the
year
-
(2,067,422) (9,706,760)
Source: Annual Report 2011
4.4 Consolidated Statement of Cash Flows
Table 4.4 Consolidated Statements of Cash Flows2011(Rupees '000')
2010(Rupees '000')
Cash Flow From OperatingActivitiesLoss before taxation (3,492,009) (12,089,002)Dividend income (137,055)
(3,629,064)(150,517)(12,239,519)
Adjustments for non-cash itemsDepreciation 280,538 394,062Amortization 370,534 371,719Workers welfare fund (2,101) 859Gain on sale of securities (273,144) (307,541)Gain on sale of operating fixed assets (2,574) (464)Provision against non-performingloans and advances
2,355,074 9,872,524
Bad debts written off directly 15,802 53,359Fixed assets written off - 159,676Provision for diminution in the valueof investments
178,913 115,134
Unrealized loss on revaluation ofinvestments classified as held-for-trading
7,053 -
Other provisions / write offs 200,912 158,359Share of income of associates (51,278)
3,079,729(549,335)
(339,960)10,477,727(1,761,792)
(Increase) / decrease in operatingassetsLending’s to financial institutions (8,237,752) (747,279)
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Net investments in held-for-tradingsecurities
(95,540) -
Advances 11,351,195 (488,061)Other assets (excluding advancetaxation)
541,631 1,798,010
Increase / (decrease) in operatingliabilitiesBills payable 402,929 (238,714)Borrowings 5,020,097 (20,161,431)Deposits and other accounts (13,639,494) 6,272,863Other liabilities (excluding currenttaxation)
(1,290,521)(6,496,790)
(741,554)(16,067,958)
Income tax paidNet cash used in operating activities
(312,508)(6,809,298)
(872,814)(16,940,772)
Cash Flow From Investing ActivitiesNet Investments in available-for-salesecurities
2,277,767 10,731,652
Net Investments in held-to-maturitysecurities
(22,089) (35,501)
Net Investments in associates 376,351 (808,666)Dividend received 137,055 212,830Payments for capital work in progress (191,617) (126,035)Acquisition of property and equipment (62,329) (114,845)Acquisition of intangible assets (7,834) (4,184)Sale proceeds of property andequipment disposed ofNet cash from investing activities
4,103
2,511,407
5,007
9,860,258Cash Flow From FinancingActivitiesRedemption of sub-ordinate loans (1,600) (1,600)Issue of share capital 2,222,640 -Advance against proposed rights issue - 6,352,360Dividend paid (86) (138)Right shares issue costNet cash from financing activitiesNet increase / (decrease) in cash andcash equivalents
(256,526)1,964,428(2,333,463)
-6,350,622(729,892)
Cash and cash equivalents atbeginning of the yearCash and cash equivalents at end ofthe year
11,789,067
9,455,604
12,518,959
11,789,067
Source: Annual Report 2011
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4.5 VERTICAL ANALYSIS
Vertical analysis is the procedure of preparing and presenting common size
statements. Common size statement is one that shows the items appearing on it in
percentage form as well as in dollar form. Each item is stated as a percentage of some
total of which that item is a part.
Table 4.5 Vertical Analysis
2010 2011
Assets Cash and balances with
treasury
9.40% 9.80%
Lending to financial institutions 3.00% 7.60%
Investments – net 23.30% 18.60%
Advances – net 57.70% 57.20%
Operating Fixed assets 2.50% 2.60%
Other assets 4.10% 4.30%
Liabilities Customer deposits 83.80% 81.70%
Inter bank borrowings 5.00% 7.30%
Bills payable 1.30% 0.90%
Other liabilities 2.30% 2.00%
Total Liabilities 92.40% 93.00%
Share capital 2.30% 1.80%
Reserves 2.40% 1.90%
Un – appropriated profit / (loss) 1.40% 2.25%
Equity 6.70% 6.40%
Surplus on revaluation of assets 0.80% 0.60%
Total Equity 7.60% 7.00%
Source: Annual Report 2011
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4.6 FINANCIAL RATIO ANALYSIS
Ratio analysis is an important and age-old technique of a financial analysis. It
is widely used tool of financial analysis. It is defined as the systematic use of a ratio to
interpret the financial statements so that the strengths and weakness of a firm as well
as its historical performance and current financial conditions, can be determined. It
simplifies financial statements, helps in planning, makes inter-firm comparison
possible and helps in investment decisions.
4.6.1 Liquidity Ratio:
4.6.1.1 Current Ratio
Formula:
Current Ratio = Current Assets × 100
Current Liabilities
Table 4.6 Current Ratio
Years 2010 2011
Current Ratio 1.1702 1.1875
Interpretation
Current ratio shows the firm’s ability to cover its current liabilities with its
current assets. The higher the current ratio, the greater the firm’s ability to pay its
bills. The ZTBL Bank’s current ratio has an increasing trend from year 2010 to year
2011 i.e. it rises from 1.1702 to 1.1875, which shows that its ability to cover the
current liabilities has increased in the year 2009 as compared to previous years.
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4.6.1.2 Cash Ratio
Formula:
Cash Ratio = Cash and Cash Equivalent × 100Current Liabilities
Table 4.7 Cash Ratio
Years 2010 2011
Cash Ratio 0.07 0.09
Interpretation
Cash Ratio Measure the ability of the firm to pay its current liabilities from its
available cash and cash equivalents. The overall cash position of the bank is almost
same no improvement from the year 2010 to 2011 i.e. from 0.7 to 0.09.
4.6.1.3 Net Working Capital Ratio
Formula:
NWC = Net Working Capital × 100Total Asset
Table 4.8 Net Working Capital Ratio
Years 2010 2011
Net working Capital Ratio –0.1 -0.25
Interpretation
Net Working Capital = Current Assets – Current Liabilities
This NWC shows the capability of an organization to pay all its current
liabilities from its current assets. Whereas the NWC ratio shows the proportion of
NWC from the total assets. The net working capital ratio of ZTBL declines from the
year 2010 to the year 2011.
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4.6.2 Activity Ratio
4.6.2.1 Asset Turnover Ratio
Formula:
Asset Turnover Ratio = Sales × 100Total Asset
Table 4.9 Asset Turnover Ratio
Years 2010 2011
Activity Ratio 0.0582 0.0689
Interpretation
The asset turnover ratio tells us the relative efficiency with which a firm
utilizes its total assets to earn Markup/return earned. The asset turnover ratio of ZTBL
Bank increased in year 2011 as compared to year 2010. The reason behind this
increase is an increase in both sales and total assets.
4.6.3 Capital Structure Ratio
4.6.3.1 Debt to Asset Ratio
Formula:
Debt to Asset Ratio = Total Debt × 100Total Asset
Table 4.10 Debt to Asset Ratio
Years 2010 2011
Capital Structure Analysis Ratios 0.78 0.77
Interpretation
Debt to Asset Ratio shows the extent to which the company’s assets are
financed by debt. ZTBL Bank debt ratio decrease a little in the year 2011 as compared
to the year 2010, which is because of the increase in total debt of the bank as
compared to previous year.
34
4.6.3.2 Debt to Equity Ratio
Formula:
Debt to Equity Ratio = Total Debt × 100Total Equity
Table 4.11 Debt to Equity Ratio
Years 2010 2011
Debt to Equity Ratio 0.2426 0.2209
Interpretation
Creditors generally like this ratio to be low. The lower the ratio the higher the
level of firm’s financing by shareholders. This ratio shows the extent to which the
firm is financed by debt. The lower the ratio the higher the level of the firms financing
that is being provided by the shareholders. The debt to equity ratio has decreasing
trend, which is because of the increase in total debt of the bank while increase in
equity is less than proportionately.
35
CHAPTER 5
SWOT ANALYSIS
The word “SWOT” is abbreviated to strengths, weaknesses, opportunities and
threats while analysis is a tool, which is used for checking the overall performance of
any organization. The SWOT analysis is a strategic planning tool used to evaluate the
overall organization’s strengths, weaknesses, opportunities & threats and involves
specifying the objective of the organization and identifying the internal and external
factors that are favorable and unfavorable to achieve that objective. The SWOT
analysis is designed to help an organization from failure to success. Finally, we do the
strength & opportunities because it is helpful while we avoid the weaknesses and
threats which are harmful for organization, which is shown in below figure.
5.1 STRENGTHS
Strengths are the attributes of the organization which are helpful in achieving
the objective. In other words, strengths means, the activities that an organization does
well favorable chances or positive factors in the internal environment due to which
organization achieve the objective. The strengths of the ZTBL are given as under;
i. The supervision and management of the ZTBL is very strong such as,
step by step, effective and efficient that leads the bank toward failure
to success.
ii. For maintaining the employees, the ZTBL provides the facility of
health, safety and employee relations & training.
iii. All staff members are well mannered in attitude, communications &
following the ethics.
iv. The report of Jun 22, 2008, the credit rating of the ZTBL was
reaffirmed the medium to long-term entity rating of ‘AAA’ (Triple A)
with a stable outlook and short term rating of A-1+ (A-One Plus)
assigned to the ZTBL.
v. The risk management of the ZTBL is still in the process of
restructuring and efforts have been put in place to adequately equip the
36
risk management function with credit review, credit risk rating and
value at risk models. Pakistan is an agriculture country with major
portion of its economy dependent on agricultural sector. ZTBL
recognizes this responsibility and thus also caters to agriculture sector
which promises high returns.
vi. The ZTBL is expanding day by day because customer accepts it. Its
network expanded to 342 branches and 25 zonal offices in the
Pakistan, which will attract large number of customers.
vii. In the age of globalization, the elevator makes it possible to save time.
While the cameras in ZTBL, make the employees to stress on their
work which is assigned or given.
5.2 WEAKNESSES
Weaknesses are the attributes of the organization which are harmful in
achieving the objective. In other words, weakness means, the activities that an
organization lakes or unfavorable chances or negative factors in the internal
environment due to which organization do not achieve the objective. The weakness of
the ZTBL is given as under;
i. The total number of employees is 5,326 in the ZTBL Head Office. In age of
technology and globalization, the understaffing may cause unnecessary work
burden on employees decreasing their efficiency.
ii. Although the ZTBL has its own Training and Development Canter but it needs
to give refreshment courses to its employees more frequently so that they
came explore new dimensions and conquer worlds.
iii. Promotion in the ZTBL is purely on seniority basis rather than on
performance. This really de-motivates the employees because they know that
it doesn’t matter whether they perform well or bad.
iv. Most of the employees work in a particular department and they specialize
only in one department. In case of absence of one employee, any other
employee cannot perform this work. In this way bank not only loses the
business but also results in dissatisfaction of the customer.
37
v. The shortage of skillful labor or manpower will lead the organization from
success to failure. Because in the ZTBL, there are many contract and
temporary based employees that has lake of managerial & financial skills.
vi. The employees working on the same position may have different degrees like
B.Sc., B.A.… etc which devaluate the students of MBA, BBA and other well
qualified staff. So there is a lack of professional staff in different departments
and lack of theoretical knowledge of the employees as well.
vii. The absenteeism & turnover rate is too high that’s results the conflicts in the
organization.
5.3 OPPORTUNITIES
Opportunities are the attributes of the organization which are helpful in
achieving the objective. In other words, opportunities means, the activities that an
organization does well or favorable chances or positive factors in the external
environment due to which organization achieve the objective. The opportunities of the
ZTBL are given as under;
i. The Organization is made up three types of recourses, such as human, physical
& financial resources which come from external environment. However, in the
age of globalization for achieving growth, the competent, skillful and the
English speaking employees are on of the requirement of the organization.
ii. The ZTBL can increase the extensive advertisements of new products,
services, vacancies, in order to increase customers & heir competent
employees from external environment.
iii. The ZTBL can start mobile credit which is the best way to effectively utilize
its present resources to gain a competitive edge.
iv. The ZTBL increases the amount of loan for their customers, which is five
lacks, in order to attract the large number of customers. The ZTBL issue a
large amount of capital to agriculture sector, in order to, utilize its resources
more efficiently and to earn more profit.
38
v. The ZTBL also, involves in creating public relations that will increase the
image and profitability of the bank. Often, public relations are conducted
through the media that is, newspapers, television, magazines, internet….etc
that’s attract a large number of customers.
5.4 THREATS
Threats are the attributes of the organization which are harmful in achieving
the objective. In other words, threats means, the activities that an organization lakes or
negative factors in the external environment due to which organization do not achieve
the objective. The threats of the ZTBL is given as under;
i. The ZTBL can avoid discrimination because it is harmful for the bank in
achieving its objective. The bank can hire the employees from external
environment. The right person is for right for job will leads the organization
towards failure to success.
ii. The employees of the ZTBL can avoid the illegal activities in external
environment that will reduce the reputation and image of the ZTBL.
iii. It is the main problem that was found to be a lack of trust in the new banking
channel by customer. However, effective complaint management can increase
customer’s loyalty and trust in Internet Banking. However, the “Crises
Management Plan” has been developed which is under review by the senior
management. The objective of this plan is to have clear guidelines and
communication in the event of any crises occurrence, which may threaten the
safety of its staff, the security of its assets, the continuity of its operation and
the reputation of the ZTBL.
iv. If we interpret the current ratio of the ZTBL, it is slowly increasing from 2008
to 2010. The current ratio in 2008 lower than rest of the years which is 1.31
which means that the bank is able to pay the current liabilities 1.31 times from
its current assets. In 2009, the current ratio is 1.32 and then sharply increased
to 1.40 in 2010. However, the higher the current ratio, the more the bank is
considered to be liquid in order to satisfy short term obligation.
39
v. If we interpret the quick ratio of ZTBL, it is higher in 2008 while lower in
2009. 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 firm’s inventory cannot be converted into cash, because
the short term investment is lower than short term financing from 2008 to
2010.
vi. The NWC of the ZTBL from 2008 to 2010 is increasing gradually and has
positive working capital & considering favorable, because the total current
assets are greater than total current liabilities and the bank is better able to pay
its short term obligation as they become due. On the other hand, if total current
assets are lower than total current liabilities, the firm has negative working
capital & considering unfavorable. In this case the bank is not able to pay its
short term obligation as they become due.
vii. It measures the firm's ability to repay long-term debt that is used in a firm’s
capital structure. There are many ratios of leverage; i.e. debt ratio, total debt to
net worth ratio & time interest earned ratio.
40
CHAPTER 6
CONCLUSIONS AND RECOMENDTIONS
A two months internship program can never provide all the information about an
organization. One roughly gets to spend a single week in each department. So in this section
only some of the problems have been pinpointed and possible solutions have been
recommended the concerned personnel of the department narrated some of these problems.
The conclusion and recommendation for ZTBL Head Office are given as under;
6.4 CONSLUSION
While concluding my report, I would like to say that an internship report
normally covers one academic term and may be either paid or unpaid. The main
purpose of the internship is to develop and strengthen the student’s educational and
career preparation. I did my internship at ZTBL, working in the Finance Department.
My internship goals included completing the reports assigned to me, learning about
the ZTBL, which is public limited company and also developing positive relationships
with employees. Some of my activities as an internee post in the ZTBL are to
coordinate with employees, working on my giving tasks, performing full
concentration and preparation of my internship reports. So an internship is an
opportunity to gain real-life experience doing the work of an employee in your career
area of interest. Ideally, this experience allows me to try out many aspects of the job
and to apply skills learned in the classroom environment. An internship is any
experience where students learn by taking on responsible roles as workers in
organizations and observing and reflecting on what happens while they are in the
workplace.
41
6.2 RECOMMENDTIONS
1. The ZTBL has to improve its recovery system in order to meet the future
credit requirements.
2. The efforts have been taken to enhance timely disbursement to small
farmers with greater outreach through efficient governance which will
alleviate poverty in the rural sector.
3. Providing cheaper and timely funds to activate the entire value chain of
agriculture.
4. Branches and Mobile Credit Officers have to direct contact with the
farmers and rural people therefore both are playing an important and vital
role for the development and uplift of agriculture sector.
5. ZTBL has to eliminate the seniority base promotion.
6. Un-viable branches of the bank should be closed. This will reduce the
expenses of the bank.
7. New energetic and capable recruitment have been made in order to meet
the future challenges.
8. ZTBL is also involved in political base loaning. To reduce the bad debts
ZTBL has to close the chapter of the political base loaning, posting and
transferring.
9. ZTBL should take steps in order to motivate the farmer for using the latest
technology in order to increase the agricultural production. There should be
a proper program for this purpose keeping the illiterate farmer in mind.
10. Concentrate on small farmers instead of large farmers.
11. A strong research and training cell should be established at country level to
overcome the hurdles conform that textile exporters as well as agriculture
export.
42
12. The branches, regions and the head office must connect with each other
through computer system.
13. To over come the losses of the bank and to properly and efficiently utilize
the assets of the bank.
43
REFERENCES
Bateman, T.S. and S. A. Scott 1996. Management Building Competitive Advantage.
Third Edition. USA: Richard D. Irwin, Times Mirror Higher Education Group,
Inc.
ZTBL, 2009. Brochures. Chota Lahore Branch Swabi.
ZTBL, 2010. Annual Balance Sheet. Chota Lahore Branch Swabi.
Horne, V. James C. and Wachowicz, Jr., John M., 1998. Fundamentals of Financial
Management. Tenth Edition. USA: Prentice Hall, Inc.
Nasir, M. Saeed. 1998. Banking Currency and Finance”, Lahore: Pakistan Kitab
Markaz. Pp. 56-59.
Naz, N., 1999. “Internship Report on ZTBL”, Department of Public Administration,
IMS. Pp.12-13.