mba final report hrm zahorr
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1. OBJECTIVES OF THE STUDYING THE BANK OF
PUNJAB
As I completed my MBA (Marketing) and my internship report is to study the functions
of the marketing department and to relate the theoretical concepts to practical
experiences. Following are objectives of studying the organization. The Bank of
Punjab
The Bank of Punjab is one of the government commercial bank in the
country.
I had been there many times before internship, there working environment
always attract me thats also the reason to choose BOP.
BOP provides opportunity to its staff members to learn more and more by
rotating work assignment creating team building and cross function
concepts.
BOP has large and wide range of product line so the opportunity of
learning about maximum numbers of product.
BOP always supportive to formers, it provides agree loan so great
opportunity to learn about agricultural finance.
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2. INTRODUCTION OF BANK
Formal Definition of Bank
Bank is an institution, which receives money from one party and lends to another party.
There are large numbers of definitions which are offered by the different authors keeping
view the various definitions we may define the bank in the following words.
a Bank is reliable financial institution which receives the money from one group of
people and lends to other group of people. So bank performs the duty of financial
intermediary among the people and creates the credit money.
These are the following types of banks
Central Bank
Commercial Bank
Industrial Bank
Exchange Bank
Saving Bank
EVOLUTION OF BANKING
Bank Origin. There are different views about origin of the world Bank. According to
some people the word Bank is derived from the world Bancus which means a
Bench. They argue their point by this transacted their business of money exchange on
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the benches. If the business of any businessman failed, his bench was destroyed by the
people. Due to this practice the word Bankrupt was also used.
On the other hand some people say that the world Bank is derived from German time
the word Bank was replaced by the word Bank which is called Banco in
Italian language.
History of Banking
The history of banking evolution is very interesting. In the early ages human like and
wealth was not secure. Due to fear of loot-mar and theft people buried their wealth under
land but this method was not satisfied. People started to search the custodians of wealth.
The evolution of banking started and it has crossed the following stages.
First Stage of Evolution
Second Stage of Evolution
Third stage of Evolution
Fourth Stag of Evolution
In the present age bank is modernized shape of those institutions. But to earn more profit
every bank started issuing overdraft facility without maintaining adequate cash reserves
to meet the demands of the depositors. This inability created the financial crises. Now to
maintain the good will of the banks perform their duties. All the commercial banks
perform their duties keeping in view the instructions of the Central Bank.
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GROWTH OF BANKING IN PAKISTAN
The entire banking business was controlled buy the non-Muslims before the partition of
the sub-continent. When Hindus became sure about the divisions of the sub continent,
they secretly began to transfer their capital to the safe places in India. The funds and
other valuables were transferred to India.
Establishment of State Bank.
The state bank was established soon after the independence of Pakistan as a central bank
which will govern the all other banks and financial institutions. It will make rules and
regulations and implement them. It also issues currencies.
To remove the financial difficulties and to establish sound banking system Govt.
established the State Bank on Ist July 1948. in the development, to banking system it
played very important role as a Central bank of the country.
Specialized Financial Institutions
Government of Pakistan established the specialized financial institutions like ADBP,
IDBP NDFC, PICIC, HBFC. These financial institutions financed the particular sectors
like agriculture, industry and housing.
Development of Commercial bank
Commercial banks are companies which transact business of banking in Pakistan.
Commercial banks have constituted the most important source of institutional credit in
the economy of Pakistan.
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New branches were opened in the country with the development of banking system.
These banks also extended their braches to foreign countries.
COMMERCIAL BANKING SCENARIO IN PAKISTAN
At the time of independence in 1947, there were 38 scheduled banks with 195 offices in
"Pakistan. But by December 31, 1973 there were 14 scheduled Pakistani Commercial
Banks with 3,233 offices all over Pakistan and 74 offices in the foreign countries.
Nationalization of Banks was not done 1st January, 1974 under the Nationalization Act
1974 due to certain objectives. But it had negative effects on the efficiency of the banking
sector. The commission transferred many banks to the private sector i.e. MCB and ABL.
INTRODUCTION OF THE BANK OF PUNJAB
The Bank of Punjab owes its existence to an act of provincial assembly, the bank of
Punjab act 1989; it commenced its operations, under the purview enshrined, as far back
as October 1989 with up capital 60.00 million. BOP is an alluring symbiotic epitome,
worth-emulation, of public and private partnership. The bank has earned a relevant
recognition and abundant accolades for its stellar growth and phenomenal progress;
posting historic results in all facets of its operation. Ranked as countrys premier financial
activity and honored with some of the most prestigious awards. Nurtured, nourished and
looked after with steadfast resilience yet doting tenderness against odds and obstacles, the
sapling in a span of a little over one and half a decade, has grown into a towering tree
with verdant foliage, blossoms; its balmy bower, soothing shade and shelter provide
solace and calmness as the preferred choice of thousands who bank on and repose trust in
ambience, courteous prompt and personalized service excellence to mutually beneficial
advantage.
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Bop Awards & Achievements
Excellence Award by the Central Board of Revenue
The Central Board of Revenue presented "Excellence Award" to the Bank of Punjab in
recognition of the contribution made by the bank towards Government exchequer.
3rd Kissan Time Awards
In recognition of Bank's contribution in development and growth of agricultural sector,
the Bank honored with "Top Bank for Agriculture Loans" and "Best Bank Crop
Insurance" under 3rd Kissan Time Awards year 2006.
Best Corporate Report Award
Annual Report of the Bank for the year 2005 won 5th position for "The Best Corporate
Report Award" for the financial sector, adjudicated jointly by the Institute of Chartered
Accountants of Pakistan and the Institute of Cost and Management Accountants of
Pakistan.
16th Bolan Excellence Award
The Bank was awarded Best Bank Award under 15th Bolan Excellence Awards
distributed in 2006.
Achievement Award
The Lahore Chamber of Commerce & Industry (LCCI) awarded the Bank "LCCI
Achievement Award" 2006.
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3. OVERVIEW OF THE BANK OF PUNJAB
3.1 Brief History
The Bank of Punjab, established under The Bank of
Punjab Act, 1989, was given status of scheduled
bank on September 19, 1994. The Bank is listed on
Lahore, Karachi & Islamabad Stock Exchanges.
The Government of Punjab is the major
shareholder. The Bank has fully owned subsidiary
M/s Punjab Modaraba Services (Pvt.) Ltd, which is
profitably managing a modaraba company.
Since its incorporation the Bank has grown manifold showing remarkable growth in all
aspects. Especially, after the current management took over the affairs of the bank in
2003 there has been tremendous growth in all its facets of operations as a result of
application of prudent and pragmatic policies with futuristic approach. Owing to its
significant performance, profitability, financial standing and market penetration the Bank
has attained reputation of a responsible corporate citizen playing a pivotal role in
economic and social development of the country.
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Currently, the Bank of Punjab is regarded as one of the most profitable banks of the
country both in absolute & real terms. Branch network of the bank consists of 266
branches, which is sixth largest network in Pakistan.
Sound financial footing, improved profitability and competent management are the key
factors taken into consideration by PACRA, the credit rating agency, while assigning to
the Bank highly credible ratings of AA for long-term and A1+ for short-term which is the
highest rating in this category.
Recognizing the role of technology in effective/ efficient operations of financial sector
BOP has computerized all its branches, which are inter connected vide online system on
real time basis. Bank's customers are facilitated by shared network of on line ATMs in all
major cities of Pakistan.
Bank's share in economic growth, especially agricultural and SME sectors cannot be
undermined. Penetration into Agri-economic was made possible through strategic
positioning of branches and introduction of a number of Agri-based financing schemes
allowing the bank to play a pivotal role in strengthening this neglected sector of our
economy.
3.2 Nature of the Organization
The Bank of Punjab was established under the act of Punjab Assembly, viz .The Bank of
Punjab act, 1989. The bill to this effect was passed by government of Punjab in
accordance with the provision of the constitutions on July 26, 1989 and later on was
given the status of scheduled bank in 1994.
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The act provided the foundation on which edifice of the bank was created. The entire
responsibility of policy formulation and management has been placed, under the act, with
the board of directors.
The Bank of Punjab is working as a scheduled commercial bank with its network of 273
branches at all major business centers in the country. The Bank provides all types of
banking services such as Deposit in Local Currency, Client Deposit in Foreign Currency,
Remittances, and Advances to Business, Trade, Industry and Agriculture. The Bank of
Punjab has indeed entered a new era of science to the nation under experience and
professional hands of its management. The Bank of Punjab plays a vital role in the
national economy through mobilization of hitherto untapped local resources, promoting
savings and providing funds for investments. Attractive rates of profit on all types of
deposits, opening of Foreign Currency Accounts and handling of Foreign Exchange
business such as Imports, Exports and Remittances, Financing, Trade and Industry for
working capital requirements and money market operations are some facilities being
provided by the Bank. The lending policy of Bank is not only cautious and constructive
but also based on principles of prudent lending with maximum emphasis on security. As
agriculture is considered as backbone of our economy the Bank of Punjab has introduced
"Kissan Dost Agriculture Finance Scheme" to small farmers.
Vision statement
To be customer focused bank with the service excellence.
Mission statement
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To exceed the expectations of our stakeholders by leveraging our relationship with the
Government of Punjab and delivering a complete range of professional solutions with a
focus on programme driven products & services in the Agriculture and Middle Tier
Markets through a motivated team.
Core values
Our customers as our first priority
Profitability for the prosperity of our stakeholders that allows us
Corporate social constantly invest, improve and succeed
Responsibility to enrich the lives of community where we operate
Recognition and reward for the talented and high performing employees
Excellence in every thing we do
Integrity in our dealings
Respect for our customers and each other
Punjab Government Shows Faith in Bank of Punjab
Punjab Government wishes to state that being the major stake holder in the Bank of
Punjab it has full faith in the new management and operations of the Bank. The
government further pledges its unequivocal support to the Bank and firmly believes that
the affairs of the Bank are sound and its financial health robust.
Social and Economic Commitment of the Organization
The banks provide various products & services to its customer to cater their need of
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Investments and other social or business requirements. BOP is now leading the way to
the most modern and dynamic banking in the country.
Being a Banking company BOP is performing normal Banking transactions as well as
providing many job opportunities. As a govt. bank perform many social and economic
functions e.g. payment of pensions, receipts & payments of govt. funds, special services
to farmers.
3.3 Business Volume
Financial Performance
Financial highlights for the past five years ended May 31 st 2009. are presented along with
key performance indicators.
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Year Wise Growth
Year Close Income Close Expense Profit Loss Growth(%)
2002 1,615,550,270.94 -1,173,946,907.82 441,603,363.12 BASE LINE
2003 1,632,667,268.55 -1,097,946,012.40 534,721,256.15 21%
2004 2,869,338,029.73 -1,676,959,562.82
1,192,378,466.9
1 123%
2005 7,840,303,996.67 -4,462,674,531.28
3,377,629,465.3
9 183%
2006 17,835,532,927.95 -11,951,293,782.43
5,884,239,145.5
2 74%
2007 28,518,593,936.67 -21,769,277,662.42
6,749,316,274.2
5 15%
2008 35,041,452,374.16 -29,691,225,055.73 5,350,227,318.4 -21%
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3
2009 14,691,276,785.95 -15,062,093,781.04 -370,816,995.09
-107% Till
May 2009
3.4 Profile of Employees
BOP Management
Mr. Naveed Hafeez Shaikh General Manager HR
Mr. Nadeem Amir General Manager Finance
Mr. Sharjeal Masud General Manager Operations
Mr. S. M. Atif Addl. General Manager
Mr. Muhammad Salim Mirza General Manager TreasuryMr. Shaheen N. Qureshi General Manager Special Assets
Mr. Mahmood Sadiq General Manager I&PSL (LDD)
Mr. Zalmai Azam DurraniGeneral Manager Broad Base
Liability
Dr. Shahid A. ZiaGeneral Manager T.R.C.& P
Division
Mr. Feisal Azmat Khan General Manager IT
Mr. Mohammad Nauman Acting Country Risk Manager
Mr. Abdul Rehman General Manager Audit &Inspection
Mr. Salman Saeed Head Credit Policy
Mr. Hafeez ud Din Acting Country Head C&IBG
Mr. Aseer Ahmad Khan Acting Country Commercial Head
Mr. Moazzam M ManekaHead Agriculture Credit
Department
Board of Director
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0
1
Mr. Safdar Javaid Syed Chairman
02
Mr. Naeemuddin Khan President
0
3
Mr. Tariq Mahmood Pasha Director
0
4
Mr. Shafqat Ellahi Director
05
Mr. Azhar Hamid Director
0
6
Mr. Shafqat Mahmood Director
0
7
Mr. Muhammad Naveed Masud Director
0
8
Mr. Waqar Ahmed Khan Director
01 Mr. Raza Saeed Secretary
To The Board
Audit Committee
01Mr. Waqar Ahmed Khan Director
02Mr. Azhar Hamid Director
3.5 BOP Product Lines
1. BOP Deposit Products
2. BOP Loan Products
3. BOP Finance Schemes
4. Remittance of Money
5. BOP Term Deposit Receipt
6. BOP Services
BOP Deposit Products
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Current Deposit Schemes
(i) Current Account
(ii) Basic Banking Account
(iii) BOP Tijarat Account
Current Account
The Accounts shall be opened upon submission of duly filled-in Banks
prescribed Account Opening Form properly introduced in the manner provided
and on submitting all such documents as may be revised by the Bank. The Bank
reserves the right to demand such relevant documents even after opening of
account as deemed necessary.
The minimum initial deposit will be Rs.100.
No profit will be Payable.
Services Charges Rs. 50/- will be deducted if blow the monthly balance
Rs.10000/-
The Accounts may be opened singly in one name or jointly in two or more names.
ZAKAT is leviable on the assets as described in the Zakat & Ushr Ordinance
1980 (as amended from time to time)
Basic Banking Account
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The minimum initial deposit will be Rs.1000.
No profit will be Payable.
No fee (service charges) for maintaining such accounts will be charged.
There will be no limit for maintain minimum balance. In the cases, there balance
in BBA's remain "NIL" for a continuous 6 month period, such accounts will be
closed.
Account holder will be allowed a maximum of 2 deposit transactions and 2 checking
withdrawals, free of charge either through cash/through clearing per month.
BOP Tijarat Account (BTA)
The rent free locker facility will be allowed on availability of locker and after
maintaining average balance for six months.
The reduction in rate of mark up on Consumer finance will be on loan amount equal to
twice of last months average balance.
The incentive package will be reviewed on quarterly basis and on the deposit procured
vis--vis cost
Profit & Loss Sharing Schemes
(i) PLS Account
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(ii) Pehlay Munafa Scheme
(iii) Senior Citizens Saving Account
(iv) Gharalyoo Saving Account
(v) Ziada Munafa Saving Account
(vi) PLS-Saving Profit Plus Account
(vii) Corporate Premium Account
(viii) Munafa hi Muanafa Account
PLS Accounts
PLS Savings Accounts may also be opened by charitable institutions, for Provident
Funds and other funds of Benevolent nature by Local Bodies, Autonomous
Corporations, Companies, Associations, Societies, Educational Institutions, Firms etc.
and in all other cases where such accounts are required to be opened under the orders
of Competent Court of Law
The rates of profits may vary from period to period viz January to June/July to
December each year. Calculation of Profit on PLS Saving Accounts will be made for
each calendar month on the lowest credit balance of an account between the close of
the 6th day and the last day of the month.
Pehlay Munafa Scheme
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Recently this scheme is introduced to attract investors. According to this scheme profit is
paid in advance which can be reinvested. Profit rate charge is multiplier e.g. more you
invest and more the rate will apply. Period for this scheme is three, six, nine, twelve and
eighteen months.
Senior Citizens Saving Account
This is a saving bank product available for all senior citizens i.e. persons of 60 years
and above who are eligible to open a saving account as per our Banks criteria. The
account can be opened singly or preferably jointly (husband & wife) provided either
of them is of 60 years or above. This product is designed to attract procure
deposit/savings of senior citizens by offering attractive, innovative incentives and
higher rate of profit to senior citizens.
Gharayloo Saving Account
This is a saving bank product available for all females who are eligible to open a saving
account as per our Banks criteria. The account can be opened singly or jointly with
husband. This product is designed to attract procure deposit/savings of ladies particularly
housewives of expatriates & students.
Ziada Munafa saving Account
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This is a saving bank product available for general public i.e. persons who are eligible to
open a saving account as per our Banks criteria. The account can be opened singly or
jointly. This product is designed to attract procure deposit/savings of general public
particularly salaried and small investors
PLS-Saving Profit Plus Account
Individuals, corporations, organizations and various provincial / federal
government departments can open accounts under the scheme.
This is an operating account
The accounts can be opened in individual or joint names.
The deduction of Zakat and Withholding tax will be applicable as per law of the
land.
Average balance during a calendar month will be taken to determine the deposit
slabs and applicable profit rate for that month for the purpose of creating
provisions.
Munafa Hi Munafa - III
This is a term deposit product. The term is from 1 month to 5 years and the profit is paid
on monthly basis. The minimum amount of deposit is Rs.80,000/-. The rate of profit is
from 6.0 % p.a. to 8.50 % p.a. depending on the tenure which is higher than Banks
normal term deposits.
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This product is governed under PLS rule i.e. the rates mentioned are expected and the
Bank reserves the right to revise the rates and terms & conditions of profit under Profit &
Loss sharing system.
Commercial Loan
(i) Running Finance
(ii) Corporate Finance
Running Finance
Running finance facility provided by the bank to its selective customers for business
purpose only. A limit of amount is sanctioned to borrower keeping in view the financial
worth of his business. Customer has drawing power equal to loan sanctioned by bank and
only mark up will be charged on amount withdrawal for business need not on sanctioned
amount.
The loan is sanctioned against three modes.
1. Against Pledge of Shares
2. Against Government Securities
3. Against Hypothecation of Stocks
Pledge of Shares
This facility is generally extended to companies or individuals on selective basis against
pledge of tangible securities such as Shares. The facility is required to be adjusted
periodically or within the period as specified in the Sanction Advice/DAC.
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Government Securities
Government Securities include Defense Saving Certificates (DSCs), Special Saving
Certificates (SSCs), Regular Income Certificates (RICs), Behbood Certificates, US Dollar
Bonds & NIT Units etc, issued by National Saving Centre Government of the
Pakistan/National Investment Trust.
Hypothecation of Stocks
Banks in such cases although do not have a physical custody of the goods, however have
a legal Charge/Lien established, thereon, providing a legal recourse to the Bank to take
custody of the stocks, in the event the borrowers default to repay the loan or fail to meet
their obligations, as agreed. Criteria to merit this facility is provided in the Banks Credit
Policy Manual, which is care fully assessed by Risk Managers, while recommending a
credit proposal to credit committee.
Corporate & Investment Banking
This group performs its function through its following two units:
1- Corporate Banking
2- Investment Banking
Corporate Bank
The Corporate Banking shall endeavor to market new clients and retain the existing
relationships and build market share through offering superior services, competitive
pricing and wide product range to valued corporate clients including the Multi National
Companies (MNCs). This Unit taking advantage of tremendous growth potentials of
corporate accounts will continue its endeavor to remain a major contributor to Banks
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earnings.
Investment Banking
Investment Banking Unit offers full spectrum of services, which include TFCs,
Syndicated Finances, Structured Finances, Leveraged Buyouts, Project Finance, Quasi-
Equity Products, Independent Advice, Equity Placements, IPOs, Equity Underwriting,
Mergers, Corporate Restructuring, Acquisitions and other products. IBU shall also work
on and come up with providing Fund Management Facilities
BOP Financing Schemes
SME Finance
Clean Pakistan CNG filling Scheme
BOP is providing finance for the establishment of CNG filling stations.
Lady Entrepreneur Scheme
Females are encouraged through micro finance schemes to start business with lower
fianc.
Auto Lease Financing Scheme
BOP as also lease auto mobiles to fulfill the need of society.
Car Dealer Financing Scheme
Finance is provided to dealers especially to car dealers at term and conditions keeping in
view the need of business.
Karobar Bharao Scheme
This scheme is introduced to expend the running business.
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Fertilizer Dealer Financing Scheme
Loans are offered in rural areas to farmers to purchase of fertilizer periodically.
Ali Akbar Group Franchise Financing Scheme
According to agreement with Ali Akbar Group fianc will be provided for its franchises
Atlas Honda Limited-Authorized Dealer Financing Scheme
An agreement is made with Atlas Honda Ltd. for financing.
Agriculture Credit
Kisan Dost Agree Finance Schemes
Provision of financial facility to farmers for purchase of inputs (Seed, fertilizers,
pesticides, fungicides etc).
Resident Self Cultivator having maximum 50
acres. The applicant should not be defaulter of any other Bank and property should be
free from any encumbrances
Amount: Maximum Rs.500,000/- according to per acre limit of the crop.
Lease Finance Facility for Purchase of Tractor under Green Tractor
Scheme 2008-2009
Facility For Purchase Of Tractor Under Green Tractor Scheme 2008-
09"
All Farmers who have been declared successful through computerized balloting. The
applicant should be a resident, owner/self cultivator of minimum 05 Acres of agriculture
land free from all encumbrances. Existing BOP borrowers having land under Bank's
charge are also eligible under this scheme.
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Kisan Dost Tractor Finance Scheme
Provision of financial facility to the farmers and non farmers (those who provide
tractors to farmers on rental basis for various tractor related operations), for purchase of
Tractor on Lease Finance Basis.
Eligibility: Resident Self Cultivator having
Amount: Maximum Rs. 750,000/-
Live Stock Development Scheme
Provision of financial facility for purchase of animals
(Milk & meat production, cattle farming,
Poultry Farming and Fish farming) to the farmers and
non farmers (those who have their own live stock
farm/fish farm for commercial purposes) Installments are 16 equal quarterly installments
within four years excluding one year dry period
Commercial Agro Services Finance Scheme
Provision of financial facility to the commercially viable entities with immaculate track
record for acquisition of Agri implements and equipments i.e. tractor trolleys, harvesters
e.g. for providing agri services to farmers.
Commercially viable entities with immaculate track record with the Bank/Other
financial institutions.
Running Finance Facility for Livestock / Poultry and Fish Farms
Running Finance Facility for purchase of animals, cost of feed, medicines and other
running expenses of the Farm. Running Finance Facility will be provided for the type
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of Live stock Farming:
1. Calves Fattening Farms 2. Broilers Farming. 3. Layer Farming.
4. Fish Farming. 5. Semen Production Unit.
Landless People for Purchase of Buffaloes for Life Sustenance
Lease Financial Facility for purchase of Milk producing Animals for landless people.
The applicant should be having space to keep animal domestically.
Maximum limit is Rs.50,000/- against only one personal guarantee.
Consumer Finance
About Scheme
A personal loan facility for the purchase of consumer durable goods (like TV,
Refrigerator, Cooking Oven, for their personal use, repayable on easy installments.
Target Market
All serving Personnel of Armed Forces irrespective of ranks including civilian
employees.
Govt./Semi Govt. Organizations/ Autonomous Bodies
Armed Forces, BOP Employees
Limited Companies/ Multinational/Educational Institutions
Registered Firms/Financial Institutions etc.
Self Employed Professionals (SEP)
Doctors, Chartered Accountants, Architects, Engineers
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Products Available
TVs, Refrigerator, ACs, Washing Machine, Computer Notebook/Laptop Bicycles,
Mobiles, Vacuum Cleaners and many more products of all renowned brands.
Down Payment
0%
Tenure/Loan Amount/ Mark-up Rate
Tenure Minimum Loan
Amount
Mark-Up
06 Months Rs. 4,000/- 0%
12 Months Rs. 6,000/- 0%
18 Months Rs. 8,000/- 09%
24 Months Rs. 12,000/- 12%
36 Months Rs. 15,000/- 18%
Eligibility Criteria
1. Age between 21 and 59 Years or retirement date; whichever is earlier
(59 Years at maturity of facility)
2. Minimum Take Home Salary is Rs. 5000/-
3. Permanent Employee with Minimum 01 Year of service with Army.
4. Have valid CNIC
Experience:
Permanent Employ: 2 years in current business
Valid CNIC
Documents Required
1. Application From
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Maximum Tenure: 05 year
Quick Cash
A Personal running finance facility for meeting the personal needs.
Loan Amount
Minimum loan amount Rs. 50,000/-
Maximum Loan amount Rs. 5, 00,000/-
Tenure:
01 Year (Renewable)
BOP Car Loan
Demand finance facility to purchase brand new locally manufactured / assembled cars /
imported cars, Chevrolet & for personal use only.
Finance Amount
Rs. 2,00,000/- to Rs. 50,00,000/-
Down Payment
10% for Govt. and 15% for Pvt.
Tenure
1 to 5 years
Payment Mode
In monthly installments
BOP Motorcycle Loan
Salary requirement (10000/- govt. Rs. 15000/- Pvt. Employees)
3 Years job experience and valid driving license & age 25-58 years
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Period of loan, 1-3 years
Amount of facility, Rs. 20,000/- to 2, 00,000/-
Down Payment, 10%
BOP House Loan Scheme
It is a long term facility for purchase of house, flat, construction of house on self owned
plot or for renovation / improvement of home.
Who can avail:
1. Salaried persons
2. Self-employed professional (SEP) [Chartered Accounts, Engineers,
Architects & Doctors / Dentists]
3. Self-employed business persons(SEB)
Finance AmountPurchase of house/flat
construction of house/flat
Minimum
Rs.3 lac
Maximum
No limit*
Additional/Improvement
Renovation of house
Minimum
Rs.3 lac.
Maximum
No limit*
TenurePurpose Minimum Maximum
Purchase of House/flat 3 years 20 years
Purchase of plot & construction thereon
or construction only
3 years 20 years with 01 year grace
period*
Renovation/ improvement 3 years
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Smart Cash Loan
BOP ATM / Debit Card
BOP Apna Cash Card is an ATM plus Debit Card.
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Service
The BOP Debit Card holders will be able to transact at any of the 1000 +
Merchants across the country. The following services can be utilized at the
Point of Sale (POS) terminals:
Purchasing
Your BOP Debit Card can be used in place of cash at all outlets where the M-
Net logo is displayed. This is a service which lets you pay directly from your
account without using cash. When a payment is made through the debit card,
your account is directly debited.
Remittance of Money
The Bank of Punjab, like other Commercial Banks undertakes to remit or transfer money
from one place to any part of the country and outside the country. The money is remitted
by means of:
1. Demand Draft (DD)
2. Pay Order (PO)
3. Mail Transfers (MT)
4. Telegraphic Transfers (TT)
5. On line Transfer
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Demand Drafts (DD)
The most common means of remittance in the bank is Demand Draft. When a person
wants to transfer his money to anther person having account with any other bank, he can
do so by obtaining a Demand Draft. The purpose of DD is to secure the amount which we
have. DD is a very secure method of transferring the money from, one place to another.
Pay Order
Pay order is a guaranteed document issued by the bank, the payment of which is made by
the same branch issuing this pay order. Pay order is used to transfer the funds within the
city while Demand Draft used to transfer the funds between the cities.
Mail Transfer (MT)
To transfer money from one place to another through a bank the second means of
remittance is Mail Transfer generally called MT. Money is Transferred through MT
mainly because the transferor, unlike in case of DD does not want to obtain and take care
of any instrument like DD and, of course, to present it at the Drawee Bank. So in order to
avoid above mentioned risks, which may contribute to the loss or delay on the part of
both the banker and the DD holder, the money transferor resorts to the MT.
Telegraphic Transfer (TT)
The quickest means of remittance in The Bank of Punjab is Telegraphic Transfer
normally called TT. The application procedure involved in the TT is almost the same as
is in the case of MT. In fact in The Bank of Punjab the Application form for DD, MT,
and TT is the same.
On Line Banking Facility
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According to this facility the customer can make remittances and draw amount from their
account through network of branches with in the country from BOP owns branches. It is
real time on line transaction facility. Nominal commission is charged on these
transactions keeping in view the amount remitted or withdrawn.
BOP ONLINE Banking
With BOPs state of the art online banking, you can access your account from
more than 272 branches located in 65 cities across Pakistan.
Now BOP enables you to do all the following transactions in minutes through
designated ONLINE Branches.
Salient features of online banking are:
Cash Deposit
Cheque Encashment
Stop Payment
Account Statement
Funds Transfer (Account to account / IBCA)
Term Deposit Receipt
1. SNTDR-7 Days
2. SNTDR-30 Days
3. TDR -1 & Above Years
4. MIS
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Special Notice Term Deposit -7 Days Scheme (Sntd-7 Days)
Under this scheme, the rate of profit is given on retention of deposit for minimum 7 days.
After lapse of seven days, the customers will earn profit on same rate .The rate of profit
paid in last half year i.e. in December 2008 was 0.5 % per annum. For this purpose the
customers are issued certificate of different denomination as required by them. On their
encashment principal amount along with their profit is paid to customers through their
account maintained with the concerned branch
3. Special Notice Term Deposit -30 Days Scheme (Sntd-30 Days)
It is similar to above mentioned scheme in operation except the difference of 30 days.
The customer who with draw money before 30 days will earn profit proportionate to
number of days passed. The profit rate lastly announced i.e. in Dec. 2008 on this scheme
was 1%. per annum.
4. Term Deposit Receipt (TDR)
On these schemes the profit is given according to different terms and conditions agreed
between the customers and the Bank. The customers are issued different certificates for
different terms and are en-cashed on their request.
5. Monthly Income Scheme. (MIS)
This is a term deposit which is placed for 5 years and profit is payable on monthly basis.
The certificates are issued in denomination of ten thousands and multiple of 10
thousands. The rate of profit currently being paid is 11% per annum.
BOP Services
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1. Utility Bill Collection
2. BOP Locker Facility
Utility Bill Collection
BOP has over 272 branches collecting electricity, gas, telephone and WASA,
and other utility bills like demand notice for telephone connection during
business hours.
Almost all the branches have special utility bills collection counters with sun-
shelters and drinking water.
Separate booths for utility bill collection are available at all major cities for the
convenience of the public.
Branches in all major cities have electronic bill collection machines. And now-
a-days BOP management is trying to launch on-line banking system in all over
the Pakistan. For this purpose some of the branches have been equipped with
this on-line facility.
For the customers convenience, BOP accepts cheques for payment of utility
bills.
Lockers
Provision of lockers is safe custody service that the bank of Punjab provides to their
customers for keeping jewelry, important documents and other valuables.
1. Custodian
The bank is called the Custodian.
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Licensee
The customer who is permitted by the bank to use the locker is called the
Licensee..
2- Lockers Security
Security of all lockers is Equivalent to two years Rent for respective locker. Late
payment fee 5% per month of annual rent or Max of 25% of the annual rent. The
breaking charges are actual or Rs.2000/- which ever is higher.
4. ORGANIZATIONAL STRUCTURE
36
President
Commercial
& Retail
BankingGroup Chief
Regional
BusinessChief
Corporate &
Investment
BankingGroup Chief
Corporate Head
North &
Corporate Head
South
Corporate
Branches
Operations
Group
Chief
RiskManagement
Group Chief
RegionalMarketing
Manages
Regional
Operations
Chief
BranchManager
RegionalCompliance
Chief
OperationsDepartments
of The Region
BranchOperationsManager
Regional Risk
Management
Chief
Credit
Department ofThe Region
Branch
CreditOfficers
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HIERARCHY AT BRANCH LEVEL
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4.1 Main Offices
Regional Chief, Regional
Operational Head
CreditCommittee
Branch Manager,Operational Manager
InternalAudit
Cash &
Clearing
Bills &
RemittAccounts
AdvancesConsumerFinance
Customer
Deposit
I .TForeign
Exchange
NON-CLERICAL STAFF
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Registered Office/BOP Head Office
10-B, Block E-II, Main Boulevard
Gulberg III,lahore.
Tel: (042) 5783700-10
Main Branch
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7 Egerton Road Lahore
Tel: (042) 9200419,9200187
Fax: (042) 9200351
Branch Network
The Bank of Punjab has opened 273 branches. All the branches are well located in
commercial and some residential areas, thus entering to the need business community and
private individuals. All branches are air-conditioned, well furnished, and equipped with
modern facilities to, provide services in congenial atmosphere.
CITIES NO.OF BRANCHES
Faisalabad 44
Gujranwala 45
Karachi/Quetta 08
Lahore 67
Multan 63
Peshawar 08
Rawalpindi 38
Total branches 273
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REGIONAL OFFICES
The network of the branches of BOP is divided in to seven Regions in all Pakistan. The
administrate control, operational control and increasing business volume is the
responsibility of the Regional chief. The following Region has been establishedup till now.
1. Regional Office Lahore.
2. Regional Office Rawalpindi.
3. Regional Office Gujranwala.
4. Regional Office Faisal Abad.
5. Regional Office Multan.
6. Regional Office Karachi / Quetta.
7. Regional Office Peshawar
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5. HRM PROCESS IN THE BANK OF PUNJAB
There are 4982 employees working in The Bank of Punjab:
1. Total numbers of regular employees are 2839
2. Total numbers of contractual employees are 2143
3. Total numbers of executives are 487
4. Total numbers of officers are 3213
5. Total numbers of non clerical staff are 1282
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HIERARCHY OF MARKETING DEPARTMENT
5.1 HUMAN RESOURCE PLANNING AND FORECASTING
The processes by which management ensures that it has the right personnel, who are
capable of completing those tasks that help the organization, reach its objectives. Another
par of the current assessment is the job analysis.
Human resource planning can be condensed into three steps.
1. Assessing current human resources.
2. Assessing future human resource needs.
3. Developing a program to meet future.
HRP PROCESS
Major steps in the Human resource planning process are to ascertain:-
1. Goals and plans of organization
2. Current human resources situation
3. Human resource forecast
4. Implementation programs
5. Audit and adjustment
At The Bank of Punjab this process of planning is done at Head office Lahore and
Regional Offices implement all these strategies which are determined during the planning
at Head Office.
FORECASTING HR REQUIREMENTS
Forecasting of HR requirements, at BOP is made on the following parameters:-
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Staffing Level
Number of employees needed to meet the strategic plans of the bank.
Staffing Mix
There are following categories of working staff in BOP as mentioned below:-
o Executives
o Officers
o Clerical staff
o Non-clerical staff
Organization and Job Design
Proposed projects for launching as per the future requirements.
Available / projected sources
As per following method e.g:-
Projected employees 125
Available employees 100_____
Net requirements __25_
3. Action Plans
Staffing authorizations
The Regional office is authorized to hire employees by outsourced companies e.g.
Security guards, Janitorial services, Sales & Marketing staff.
Recruitment
All the new recruitments on permanent basis is made according to the laid down
procedure and policies at Head Office Level. So, all the major decisions are taken by
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the Senior Executive management of the bank regarding recruitment of permanent
staff.
However, recommendations / suggestions are taken by the Head Office from
Regional Offices time to time.
Promotion & Transfer
Normally after every 03 years Promotion / Move-over is given to the employees on the
basis of their ACRs (Annual Confidential Reports), performance reports,
recommendations, seniority and so on.
Organizational changes
As per the requirement of the bank, organizational changes are also taken whenever bank
management feels the changes necessary for the bank.
Training & Development
Training & Development is necessary to equip the employees with new technologies. Its
also helpful for career growth and development. Employees learn and develop new skills,
or areas of development in new Techniques and latest information, so that, after the
necessary training on specific fields, better & accurate functions and operations may be
executed in the bank.
Recruitment Planning
Recruitment begins with a clear specification of
1. the number of people needed through H R Forecast
2. when they are needed
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Compensation & Benefits
Compensation and benefits are given to employees.
Labour Relations
The information for job analysis is better for both management and unions for
resolving disputes.
METHODS TO FORECAST HR NEEDS
At BOP, HR forecasting is being done according to the following model:-
Forecasting Model
Current
Strength
Losses /
Withdrawal
Back-up In Future
Requirements
Surplus /
Shortage
Plans of BOP may include the following course of actions:-
- Inauguration of new branches.
- No. of pensioners.
- No. of utility bills
- No. of A/c holders
- New products to go launching in future
5.2 EMPLOYEE RECRUITMENT AND SELECTION
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Sources of candidates
a) Internal sources
b) External sources
Employee Recruitment & Selection Process
The start of the recruitment process gives the business time to reassess the nature of
peoples jobs and consider future requirements.
The recruitment and selection process will be:
1. Vacancy arises
2. Job analysis
3. Job description
4. Job specification
5. Job advertised in appropriate media
6. Application forms and short listing
7. Interviews and selection
8. Vacancy filled Steps
Job Analysis
Job analysis is the foundation for forecasting the need for human resources.
Supply Analysis
Supply Analysis focuses on identifying organizational competencies, analyzing staff
demographics, and identifying employment trends.
Demand Analysis
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Demand Analysis deals with measures of future activities and workloads, and describing
the competency set needed by the workforce of the future.
Gap Analysis
Gap analysis is the process of comparing information from the supply analysis and
demand analysis to identify the differences, the gaps, between the current organizational
competencies and the competency set needed in the future workforce.
Action Plan
Action Plan is the process of developing strategies for closing gaps in competencies and
reducing surplus competencies.
H R Planning
HRP is becoming more important in bank as a result of globalization, new
technologies, organizational restructuring and workforce diversity.
The right number of people with the right skills, experiences, and competencies
in the right jobs at the right time.
Recruitment
Recruitment starts with the objectives of bank and the specification of HR
requirements.
Initial Screening
Initial screening is the basic step of employee recruitment. Here the
separation down of the qualified and un-qualified candidates.
Selection
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Selection of New employees by the bank through written tests, &
interview process.
Orientation
Orientation is particularly important for familiarization visual,
presentation, briefing about the BOP policy, procedures and benefits.
Placement
After completion of recruitment process, the employees are posted at needy
positions / branches.
Training
According to job descriptions and specifications training programmes are
arranged in BOP.
Performance Appraisal
Annual Performance Appraisal is made after 31st Dec of every year. Its not kept a
confidential. All points discussed with the Appraise by the Appraiser. Following
are the Parts & Sections contained in The Bank of Punjab in Annual Performance
Appraisal.
Section-I (To be filled by the concerned Branch / Region)
Name
Fathers Name
Designation
Grade
Basic Pay
Regular / Contractual
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Current Posting
Reporting to
Date of Joining BOP
Date of Last Promotion
Academic Qualification
Professional Qualifications
Status of Disciplinary actions, if any
Section-II (To be filled by the Appraise)
Mention most important achievements during the year
Section-III (To be filled by the Appraise)
What Training would you like to undertake to benefit you
Part-B
Section-I
Performance, Achievement against job objectives (Already agreed)
Rate the performance against objectives:
(1=poor, 2=Satisfactory3=Good4=Very Good 5=Excellent)
Five Objectives Score (1 to 5)
1. Deposit
2. Advances
3. Profit
4. Reduction of Bad debts
5. Reduction of Complaints
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Total score / No. of objectives x 0.7 (Score of Section-I)
Section-II
Behavioral Skills
1. Job Knowledge
2. Communication Skills
3. Attitude, Behaviour & Response to Controlling Offices
4. Initiative
5. Attendance & Punctuality
6. Commitment to Job & Organization
7. Team Work
8. Analytical Ability
9. Development of subordinates
10. Personal appearance and grooming
Total score / No. of objectives x 0.3 (Score of Section-II)
Grand Total:_________________
Section-III
- Signature of Appraisee & Date
(with comments, if any)
- Signature of Appraiser & Date
(with comments, if any)
(Immediate Supervisor)- Countersigned by the Appraisers Supervisor & Date
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Sources of candidates
a) Internal sources
Any employee who has the requisite qualification can apply through proper
channel after getting permission (NOC) from his department Head / Region. BOP
allows its employees to apply for the suitable positions within the organization for
enhancement of proper status.
b) External sources
External sources i.e. through solicited methods MTOs/RMs (Management Trainee
Officers/Relationship Managers) appointed through Head Office. Training &
Development are given at Staff Colleges in different Provincial cities. After that
placement is done at different Regions.
5.3 TRAINING AND DEVELOPMENT
Training Need Assessment
Training and development phase and the evaluation phase depend on inputs form
assessment. The purpose of the assessment is to define what employee should learn in
relation to desired job behaviors. Methods and techniques, carefully delivered
systematically in a supportive, encouraging environment are based on sound principles of
learning. Training is essential for development of skill and knowledge of employees.
Training Programmes follow three phase sequence:-
1. Needs Assessment
2. Implementation
3. Evaluation
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Firstly, focus what is to be learned that is required as per job specification.
1. Continuous cycle of organization analysis
2. Operations analysis
3. Analysis of the training needs of employees.
In evaluating training programmers we measure change in terms of four categories.
1. Reaction
2. Learning
3. Behaviour
4. Results
Evaluation is involved in :-
1. Establishing indicators of success in training as well as on the job.
2. Determining exactly what job related changes have occurred as a result of
Training.
So, evaluation must provide a continuous feed back so that it can be used to
reconsider training needs.
Three levels of analysis for determining the needs that training can fulfill.
1. Organization Analysis
Focuses on identifying where within the organization training is needed.
2. Operations Analysis
Focuses to identify the content of training what an employee must do in order to
perform competently.
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3. Individual Analysis
Determines how well each employee is performing the tasks that make up his job.
So, it is essential to analyze the organizations external and internal environment.
Trends in the strategic priorities of a business, judicial decisions, civil rights laws, union
activity, productivity, absenteeism and on the job employee behavior will provide
relevant information at this level.
So, the important question is that whether training produce changes in employee behavior
which will contribute to our banks goal.
Operations analysis requires a careful examination of the work to be performed after
training. It involves:-
1. A systemic collection of information that describes how work is done.
2. Descriptions of how tasks of performance for that work can be determined.
3. The competencies necessary for effective task performance.
So, job analysis, performance appraisals, interviews and analysis of operating problems
all provide important inputs to analysis of training needs.
In individual analysis, difference between desired performance and actual performance
depends on the improvement of individuals capabilities needed for the proper working of
the bank.
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Employee Development
In The Bank of Punjab following courses are offered to the employees for development
during Training Calendar that are as under:-
1Core Banking
1.1 BOP Products & Services
1.2 Consumer Banking
1.3 Agriculture Finance
1.4 SME Financing
1.5 Commercial Finance
1.6 Corporate Banking
1.7 Treasury Management
1.8 Credit Management
1.9 Credit Administration1.10 Risk Management
1.11 Foreign Exchange
1.12 KYC / AML / Constituents Accounts
1.13 Branch Operations
1.14 Cash Management
1.15 Branch Accounting
Regulatory Compliance
2 2.1 SBP Prudential Regulations, FE Regulations and other Guidelines
2.2 Banking and Related Laws
2.3 Corporate Governance2.4 Basel-II
2.5 Audit and Compliance
3 Islamic Banking
3.1 Principles of Shariah Compliant Banking
3.2 Islamic Financing System
3.3 Shariah Compliant Products
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4 Marketing, Relationship Banking & Customer Service
4.1 CRM
4.2 Selling Skills
4.3 Customer Service / Customer Delight
5 Leadership & Management5.1 Leadership Skills
5.2 Stress and Time Management
5.3 Team Building
5.4 Personality and Attitude Development
5.5 Human Resource Management and Development
5.6 Executive Development Programme
6 Communications Skills
6.1 English Language Programme Basic / Intermediate / Advance
6.2 Communications Skills
7 Information Technology
7.1 MS Office (Complete Package)
7.2 MS Power Point
7.3 MS Excel Advance
7.4 E-mailing & MS Outlook
7.5 ATM Operations
7.6 BBO / VPN
7.7 EBS / IBT
7.8 CBR Collections
7.9 Core Banking Applications
8 Long Duration Courses
8.1 Basic Training Course8.2 Branch Management
8.3 Branch Operations Management
8.4 Foundation Courses (for Officers G-I, II & III)
8.4.1 Operations
8.4.2 Credit Management
8.4.3 Risk Management
8.4.4 Foreign Exchange
8.4.5 Accounting
8.4.6 Islamic Banking
8.4.7 I.T various aspects
8.5 Advance Courses (for Officers G-I, II & III)
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8.5.1 Credit Management
8.5.2 Risk Management
8.5.3 Foreign Exchange Management
8.6 Executive Development Programme (Junior, Middle, Senior levels)
5.4 PERFORMANCE MANAGEMENT
- Setting performance standards & expectations
- How performance reports are written
There are following three main things in performance Appraisal process in BOP:-
1. Goal Setting
2. Measuring Accomplishment
3. Regular Assessments of Progress
Result Oriented Rating Method
Main process is goal setting to establish objectives for the organization as a whole, for
each department for each manager within each branch and for each employee.
Three things involved to establish objectives:-
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1. To agree on the major objectives i.e Deposit, Advances, Profit etc for given
period of time 01 year in BOP.
2. Develop plans for how & when the objectives will be accomplished.
3. Agree on the yardsticks for determining whether the objectives have been met.
Progress reviews are held regularly in the bank until the end of the period for which the
objectives were established.
MBO (Management by Objectives) is a complete system of planning and control in the
bank. It promotes success of each employee, employees Manager, the department and
the bank.
Graphic Rating Scale
Level of Performance
Rating Factors
Points
1 2 3 4 5
Attendance & Punctuality
Unsatisfactory
Conditional
Satisfactory
AboveSatisfactory
Outstanding
Job Knowledge
Attitude, Behaviour & Response
To controlling offices / branches
Personal Appearance & grooming
Quality of work
Commitment to job & Organization / bank /
branch
Communication skills
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Performance Evaluation
1. Immediate Supervisor
2. Peers
3. Subordinates
4. Self Appraisal
5. Customers served
6. Computers
In BOP performance of employees is assessed by their immediate supervisors.
Staff Motivation to improve performance in BOP
1. Communicate Frequently
2. Encourage subordinates to learn about modern technologies
3. Encourage participation
4. Judge performance, Not Personality
5. Avoid destructive criticism
6. Set mutually agreeable goals
7. Be specific & be an active listener
8. Continue to communicate and Assess progress toward goal regularly
9. Make organizational rewards contingent on performance
Performance Management requires willingness and a commitment to focus on improving
performance at the level of the individual every day.
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Broad Process of Performance Management
1. Define Performance
Ensure that an employee individually and the department as a whole know what is
expected to them.
i. Goal setting is a vital role in improving performance and success. So,
improvement and productivity increase by using goal setting.
ii. To measure the extent to which goals have been accomplished.
iii. Regular assessment of progress toward goals focuses the attention and
efforts of an employee.
2. Facilitate Performance
Managers who are committed to managing for maximum performance
recognize that one their major responsibilities are to eliminate roadblocks to
successful performance.
Outdated or poorly maintained equipment, delays in receiving supplies,
inefficient design of work spaces and ineffective work methods are the
obstacles that inhibit maximum performance.
Once roadblocks to successful performance have been eliminated the next step
is to provide adequate resources i.e capital resources, material resources or
human resources.
Its immoral not to give people tools to meet tough goals.
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Final aspect of performance facilitation is the careful selection of employees.
Therefore, top management at Head Office, Karachi involved in selecting new
employees.
3. Encourage Performance
To encourage performance, especially repeated good performance managers must
provide a sufficient number of rewards that employees really value in a timely
and fair manner, Pay, benefits, free time, special privilege etc.
5.5 EMPLOYEE COMPENSATION AND BENEFITS
Types of compensation and benefits
Compensation includes direct cash payments and indirect payments in the form of
employee benefits and incentives to motivate employees for higher levels of
productivity.
Pay for performance is the new mantra. An organizational reward system includes
anything e.g; an employee values and desires that a bank is able and willing to offer
for employee contributions.
Reward Systems
Financial Non-Financial
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Direct Payments(Salaries)
Indirect Payments(benefits)
Protection Programs
Employee involvement indecision making
Effective Supervision
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Reward system includes both
- Financial
- Non Financial rewards
Financial rewards include direct payments and indirect payments.
Non Financial rewards include everything in a work environment that enhances a
worker / employees sense of self respect, chance for training and personal development
etc.
Benefits
- Medical benefits
- Pensions
- Group Term Insurance
- Loan Facility
- Bonuses (02 Eid & 01 Closing year end i.e Total 03)
- Marriage Grant i.e Rs.50000/-
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Recognition
Training OpportunitiesSupportive company culture
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5.6 ORGANIZATIONAL CAREER MANAGEMENT
o Employee Job Changes
Job Changes within the organization
o Promotion
o Transfer
o Demotion
Separations
o Layoff
o Termination
o Resignation
o Retirement
Promotions
Transfers / Layoffs
Relocations RetirementsResignations
Demotions
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There are four broad types of internal moves:-
Up, down, over & out. These moves correspond to Promotions, Demotions, Transfers and
layoffs.
Promotion
Promoted employees feel greater responsibility and authority in return for higher pay,
benefits and privileges.
Promoted individuals tend to increase their commitment, more output, zeal and zest in his
work / assignments:-
Transfers
Transfer / Relocation means increased prestige and income. However, costs of moving,
up setting routines are the main hurdles. In BOP, transfer of the employees continuously
done within a Region according the policy and when bank feels. However, status of the
employees remain same. Job rotation also done within the branch. Usually the staff is
rotated after every three years.
Demotions
Employee demotions means to cut in pay, status, privilege or chance i.e increments,
grade etc. Disciplinary action are executed only when someone shows inability to handle
the requirements of a higher level job / health suffers problems or changing interests.
Separations
Lay off
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Involuntary layoffs are never pleasant. Layoffs are intended to reduce costs; some costs
may in fact increase i.e. recruiting, training and retaining pension, severance pay etc.
In BOP a good number of employees have been layed off in 1998 & 2002, but their
separation was under Golden Hand Shake Schemes and very Handsome amount was paid
to employees, who opted to separate from service under Golden Hand Shake Scheme.
Termination
Its a disciplinary action taken by the bank owing to financial corruption, repeat
misconduct and so on. Employeeswho! remain loyal, trustable, `motivated, productive
the (asset of bank and prestige of bank.)
Resignation
Resignation or voluntary employee turnover is allowed in BOP. If employee wishes!
Togive! Resign, he must give one month advance / prior notice.
Retirement
At BOP employees can go to the retirement after attaining the age of"60 years. HR
department also organize (pensions and Group life insurance. Pension is allowed to all
employees after retirement and whose the employee dies his widow can avail this facility
till death. Even if the widow takes, the daughter/son of employee can avail pension till
she/he attain the age of majority i.e. 18 years or she/he married, whichever is happened
earlier.
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6. LABOUR MANAGEMENT RELATIONS
Industrial relations are the processes by which human beings and their organizations
interact at the workplace to establish the terms and condition of employment.
Union Management Agreements are as under:-
Working conditions
Recognition and union membership
Rates of Pay
Working hours and overtime
Holidays
Vacations
Seniority
Adjustment of complaints and grievances
Discharge of employees
Management Functions
Safety and Health
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Negotiation of an agreement is a process of collective bargaining and in collective
bargaining unions are pattern setters in establishing wage level, fringe benefits and
working conditions.
Union Membership
Labour Management relations are relating the needs of people. Employees often join
unions in order to have a method of collectively resisting actions of management. When
employers cut wages, pay low wages, dismiss employees, unpleasant working conditions,
employees may resist by joining unions. Union employees may petition management for
changes and if unsuccessful they may resort to concerted work stoppage a strike.
Labour Management relations are concerned with the relationships that exist between
those persons who perform work and those who supervise it.
Supervisory relations involve the exercise of authority and the use of power. So, Labour
Management relations involve the use of power by managers and employees.
When there are disagreements and disputes, the unrestrained use of power can result in
disruptive conflicts. In some cases, the conflict imposes harm only on the employer and
the workers immediately involved. In other cases, the broader community may also suffer
loss.
Collective Bargaining
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Collective Bargaining is a process by which management and unions establish terms and
conditions of employment. The process is bargaining because it involves give and take,
the making of contract.
Labour management negotiations involve three major participants.
1. Union
2. Management
3. Employees
Conducting A Strike
When no decision is made between union leader and negotiating committee to solve the
problems, then great influence by union leaders to enforces workers to gather for a
strike.
A strike has its own dynamics. It is called simply to bargain demand. Its a pressure
tactic. Strikes occur when employees refuse to work until changes are made in
compensation or in conditions of work.
Settling Disputes
Mediation
Strikes are a form of open conflict which most people wish to avoid. When a strike
begins, in consequences a number of steps are consider try to resolve the disputes.
Mediation is a major form of intervention intended to resolve disputes without strikes.
Mediation is a process by which a neutral party attempts to help disputing parties reach a
settlement of the issues that divide them. So, mediation is a process of persuading the
parties to reach an agreement.
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Arbitration
Arbitration is a process by which an answer is provided for issues in dispute. Whereas,
the focus in mediation is on bringing the parties to some agreement; the focus in
arbitration is on what the agreement should be.
Handling Grievances
A grievance is an alleged violation of the rights of workers on the job. One of followings
can cause grievances:-
- As a violation of the collective bargaining agreement
- As a violation of federal / state law
- As a violation of past practice
- As a violation of company rules
- As a violation of managements responsibility
Grievances ordinarily arise under the provision of a collective bargaining agreement.
Grievance Procedure
- To settle disputes arising during the period of the agreement
- To establish an orderly method for handling disputes
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- To provide unions role in processing the grievance of a single employee
- To allow either side to appeal the results of grievance negotiation step by step
until a final and binding decision is reached
7. CRITICAL ANALYSIS
During my woring, I practically observed almost all the functions of Human Resource
Management, which were already theoretically studied by me. For instance, I inquired
about Human Resource Planning and Recruitment process of BOP; which is centralized.
The Head Office Lahore analyzes the staff requirement on the basis of input / feed back
received from its seven regions. Then it advertises the Job Opening in all leading news
paper and after test / interviews, the recruitment is made by BOP.
The newly appointed employers are undergone by an intensive training of six months at
BOP Staff Colleges as well as practical training in the branches. Thereafter, they are
posted at Branches / Regions / Head Office, as per requirement. All policies of Human
Resource Management are made by Head Office Lahore and the Regional HR
Department are supposed to implement the HR polices, in true letter and spirit. For
example,
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(i) All human resource development and training schedules are formulated by
Head Office, the Staff Colleges are arranged for training and Regional Offices
nominate employees to attend the training sessions.
(ii) The strategy for promotion of employees is also formulated by Head Office.
Regions provide evaluation sheets of each and every employee to Head
Office. After detail study of number of employees in each grade/cadre, the
Head Office announces the promotions of employees, which may be 10%,
20% or 30% in each grade/cadre.
Requirement Analysis (Purpose of internship / study)
Purpose of my internship/study was to study practically the Human Resource Department
of The Bank of Punjab, Regional Credit Administration Office Multan in order to inspect
that how different functions of HR are being performed by them.
Data Gathering
I used following techniques for data gathering during my internship/working at BOP: -
1. Personal Interviewing
2. Documents (such as duty list of employee etc.)
3. Observations
4. Books / Internet
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System Design
The design of my study is Descriptive. Whatsoever, I have observed during my
internship/working, I have described in detail in the report.
Implementation
The final stage of any study is implementation. Implementation means the application of
study results. My internship is a Descriptive study and only facts are described in my
report. Some weaknesses have also been discussed along with recommendations to
overcome them.
SHORTFALLS / WEAKNESSES OF HRM DEPARTMENT
Following are the weaknesses of HRM department:-
1. Delay in taking steps for HR development
There is an unnecessary delay in implementation of new HR techniques/policies by the
Regional Offices, because the whole system of BOP is centralized i.e. Head office
conveys guidelines and HR Department proceeds accordingly.
2. No flexibility in rules and regulations
As already discussed that the Regional Offices have to follow the guidelines, which are
framed by the Head Office Lahore. If there, any new staff or staff welfare related
problem arise, the Regional Office cannot decide the same by its own; because there is
no relaxation in rules and regulations at BOP. For any new problem the Regional Office
has to move to Head Office for seeking guidelines, which usually un-necessarily delayed
the matter.
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3. Political Recruitments
Being the largest and government owned Bank, the BOP faces the problem of low
qualified and less skilled staff, which it has to recruit under political pressure.
4. Lack of Technical Support to Staff
The Bank of Punjab is lagging behind in using the latest system and technology. The staff
of BOP is doing most of the work manually. It is the era of information technology but
BOP is using outdated techniques, which is not employees supportive and BOPs
employees seems less skilled as compare to other Banks.
5. Excessive Work Load on employees
The workload in BOP is increasing day by day, but there is shortage of staff and
resultantly many times complaints arise from the customers. Employees of BOP often
remain in office till 9-7, but yet unable to manage the workload.
6. Lack of Team Work
BOP is hiring the services of young talent in the shape of Management Trainee
Officer /Relationship Officers (MTO/RMs) for the last five years. There is a lack of
coordination among the old employees and MTOs/RMs. Old employees considered the
MTOs/RMs as threat to their jobs, which is adversely effecting the work of Bank.
7. Lack of Participative Management System
The structure of BOP is bureaucratic, thus there is a lack of participative management
system. Normally, the employees are not being counseled when new products are
introduced or new regulations are framed at BOP
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8. CONCLUSION
No doubt the BOP is financial institute but the working substances are the human beings.
It goes with out saying that Human resources are the most important in the organization
and so does the Human Resource Department. It integrates all the activities and functions
of the bank like job analysis, recruitment, staffing, training, designing compensation
package and employees appraisal system.
Human Resource Department plays the key role in the hiring, retention, motivation and
promotion of the employees. Actually it assigns the specified duties to the specified
persons in this age of specialization.
Human Resource manager should be well versed and confident in his field. He should be
humane, well natured and have go face reading capabilities. All this ensures his success.
He should be of the notion victory is not the everything but the way of fighting is.
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9. RECOMMENDATIONS
1) The BOP has centralized system. All decisions and policies are made at Head Office
level, which creates a lot of delay and confusion while performing different functions.
I think that the Bank should also delegate some authority to field offices or it should
made flexible decisions in which the field offices can initiate.
2) The Human Resources should be recruited as per job specifications and without taking
any political pressure.
3) Training and Refreshing courses should be adequate and more frequent during the
year.
4) The promotional criteria by the Human Resource Department should be well defined
and implemented as per rules.
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5) More training centers should be established. If there is lack of resources, the training
centers of the other organizations in the same capacity can be utilized by determining
the terms and conditions.
6) The proper and competitive evaluation methods and procedures will definitely
enhance the performance of Human Resources.
7) This is the era of Information Technology. The functions and procedures of the bank
should be converted from manual to the electronic system. It will enhance the
performance of the Human Resources and ultimately of the bank. Human Resource
Department should give its suggestions and recommendations to Head Office for thispurpose.
8) Human Resource Department may advice and trains its employees for efficient
working in order to reduce the time and conserve the resources.
9) Benefits to employees may be raised upto reasonable extent in the light of profit
earned by the organization; to motivate the employees.
10) Work environment plays an important role to enhance the productivity. During my
internship, I found that by improving the work environment the BOP can enhance the
productivity of its employees.
11) BOP has a very vast network of customers. The Bank is also performing such public
services which are not being dealt by other Banks. For example, Government receipts
and payments, Pension payments, Zakat payments and payment of salary of
government employees. Branches of BOP remain over crowded due to these services.
To overcome this problem the Bank should immediately increase its Human
Resources.
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12) Pay for performance compensation system must be introduced and remuneration of
employees must be on the basis of their qualification and performance and not on
seniority.
10. REFERENCES & SOURCES USED
Sr. No. Names Contact No.
1) Mr. Muhammad Idrees 061-4504232
2) Mr. Tanveer Elahi 061-4504235
3) Mr. Muhammad Afzal 061-4504236
4) Mr. Fahad Tariq 061-4504236
5) Mr. Nadeem Qadir Hashmi 061-4504234
BOOKS
Managing Human Resources written by Wayne F. Cascio
Website: www.bop.com.pk
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www.hrm.com.pk
11. ANNEXURE / APPENDICES
List of 11 Branches in Multan City
THE BANK OF PUNAJB
Multan City Branches
SR.NO. BR.CODE BRANCH NAME
1 0004 QUAID-E-AZAM ROAD, MULTAN
2 0066 HUSSAIN AGAHI BRANCH, MULTAN
3 0091 GULGASHT COLONY BRANCH, MULTAN
4 0121 KUTCHERY ROAD BRANCH, MULTAN
5 0108 CHOWK SHAHEEDAN BRANCH, MULTAN
6 0130 MUMTAZABAD COLONY BRANCH, MULTAN
7 0136 KHANEWAL ROAD BRANCH, MULTAN
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8 0175 S.R.A. COLONY BRANCH, MULTAN
9 0176 NISHTER CHOWK BRANCH, MULTAN
10 0207 CLOCK TOWER BRANCH, MULTAN
11 0233 M.D.A. CHOWK BRANCH, MULTAN