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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.

5.

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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.

33

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.