Topics Page No.

Mission Statement 3
History 4
Constitutional Base 6
Scope of the Bank
Management of the Bank !
"m#lem !
$#%ecti&es '(
)uture $utlook ''
Su#si*iaries + Sponsorship '3
Be a *ynamic resource of economic *e&elopment an* gro,th for stakehol*ers through ser&ice e-cellence achie&ing high
stan*ar*s of professionalism. *e*ication integrity an* team ,ork.
Core /alues
0ntegrity
1e*ication
Transparency
Team ,ork
History
The Bank of Pun%a# starte* functioning ,ith the inauguration of its first #ranch of 23"gerton 4oa*. 5ahore on No&em#er
'6. '!!. The architect of the #ank Mr. Na,a7 Sharif then. the Chief Minister of Pun%a#. performe* the inauguration.
0n Pakistan. o&er long perio*s of time the gap in sa&ing an* in&estment an* #alance of tra*e *eficit has pose*
serious threat to the target le&els of gro,th The ailments relate* to the #u*getary *eficit an* pu#lic *e#t. #oth foreign an*
*omestic are in a**ition. 0nterestingly e&en such a*&erse circumstances gro,th of real sector *uring the prece*ing year
registere* a fa&ora#le change. ,hich speaks of hi**en potential an* strength of economy
)ortunately. the #anking sector of the country has the ,ell organi7e* an* properly institutionali7e* system. ,hich is the
ma%or &ehicle not only for mo#ili7ation of resources to finance tra*e. agriculture. an* in*ustry #ut also for the effecti&e
con*uct of monetary policy.
The emergence of ne, #ank on the national scene in the early '!!(s has *one t,o important ser&ices to the
nation.
8 The sa&ing #ase of the economy has effecti&ely enlarge* an* hence the in&estment opportunities ha&e increase*.
8 The ser&ices of the #anks in the fact of se&ere competition ha&e impro&e* consi*era#ly so that no, consumer are
left ,ith e-tensi&e choice to *o or un*o their #usiness relations ,ith these #anks keeping in &ie, 9uality of their ser&ices.
The Bank of Pun%a# is ,orking as a sche*ule* commercial #ank ,ith its net,ork of :43 #ranches at all ma%or #usiness
centers in the country. The Bank pro&i*es all types of #anking ser&ices such as 1eposit in 5ocal Currency. Client 1eposit
in )oreign Currency. 4emittances. an* ;*&ances to Business. Tra*e. 0n*ustry an* ;griculture. The Bank of Pun%a# has
in*ee* entere* a ne, era of science to the nation un*er e-perience an* professional han*s of its management. The Bank of
Pun%a# plays a &ital role in the national economy through mo#ili7ation of hitherto untappe* local resources. promoting
sa&ings an* pro&i*ing fun*s for in&estments. ;ttracti&e rates of profit on all types of *eposits. opening of )oreign
Currency ;ccounts an* han*ling of )oreign "-change #usiness such as 0mports. "-ports an* 4emittances. )inancing.
Tra*e an* 0n*ustry for ,orking capital re9uirements an* money market operations are some facilities #eing pro&i*e* #y
the Bank. The len*ing policy of Bank is not only cautious an* constructi&e #ut also #ase* on principles of pru*ent len*ing
,ith ma-imum emphasis on security. ;s agriculture is consi*ere* as #ack#one of our economy the Bank of Pun%a# has
intro*uce* <=issan 1ost ;griculture )inance Scheme< to small farmers.
The Bank of Pun%a# has the pri&ilege to *ischarge its responsi#ilities to,ar*s national progress an* prosperity. >ithin the
couple of years of its sche*uling. the #ank has not only car&e* out for itself prominent niche in the mainstream #anking of
the country #ut in certain areas it has the *istinction of taking the lea*. 0n the short span of time the Bank has #een a#le to
e&ol&e a *istinct corporate culture of its o,ne*3#ase* policies. ,hich are realistic an* are on highly professional footings.
Constitutional Base.
The Bank of Pun%a# ,as esta#lishe* un*er the pro&isions of Section : of )e*eral 5ist inclu*e* in the 4th sche*ule of the
Constitution of the 0slamic 4epu#lic of Pakistan '!23.
The Bank ,as esta#lishe* un*er the ;ct of Pun%a# ;ssem#ly &i7. The Bank of Pun%a# ;ct '!!. The Bill to this effect ,as
passe* #y the Pro&incial ;ssem#ly on ?uly 3. '!! an* ,as passe* to. #y @o&ernor Pun%a# in accor*ance ,ith the
Pro&isions of the Constitution on ?uly :6. '!!.
The ;ct pro&i*e* for the foun*ation on ,hich the e*ifice of the #ank ,as erecte*. 0t also inclu*e* an* pro&i*e* for &arious
mo*alities concerning the structure. the organi7ation an* scope of the #ank laying *o,n its o#%ecti&e share capital an*
principle of len*ing. The ;ct *efines rules for the follo,ing.
'. Short title. e-tent. an* commencement.
:. "sta#lishment an* incorporation of the Bank.
3. Share Capital.
4. 4egister of Sharehol*ers.
6. Aualification of Sharehol*ers.
6. @o&ernment to #e sharehol*ers.
2. Hea* $ffice of the Bank.
. Boar* of 1irector.
!. Managing 1irector.
'(. Aualification an* *is9ualification of the *irectors.
''. 4emo&al of 1irectors.
':. Terms of office of *irectors.
'3. /acancies.
'4. @eneral an* special meetings.
'6. /otes of the sharehol*ers.
'6. Business. ,hich the Bank is authori7e* to transact.
'2. Business. ,hich the Bank is not authori7e* to transact.
'. ;u*itors B @o&ernments au*itors.
'!. 4ight an* *uties of the au*itors.
:(. 5i9ui*ations of the Bank.
:'. Po,ers of the Boar* to make #yela,.
Scope of the Bank.
Being a commercial Bank. The Bank of Pun%a# performs all such functions as are attri#ute* to commercial
#anking institution #oth in the area of resource mo#ili7ation. loans. an* in&estment. The Bank is thus pro&i*ing all type of
a*&ances to #usiness. tra*e. an* in*ustry on seasonal an* annual #asis. an* is ensuring. through the pru*ent policy. the
safety an* protection of its loan portfolios. as the resources #ase of the #ank e-pan*s. pro%ect financing ,ill also #e #rought
into its fol*.
Management of the Bank.
;t the le&el of 1ecision3making an* implementation. senior management of the #ank is *ra,n from highly
accomplishe* #ankers ,ith rich e-perience in the #anking profession #oth *omestic an* international.
The entire responsi#ilities of policy formulation an* management ha&e #een place*. un*er the la,. ,ith the Boar* of
1irector. )urthermore it ,ill #e heartening to kno, that Mr. Na,a7 Sharif. *uring his chief Minister ship of the pro&ince
of Pun%a# issue* special instructions to the political an* e-ecuti&es echelons not to interfere in The Bank of Pun%a#.
there#y ousting the possi#ility any pressure ,hich may #e put on the management of the #ank in respect of recruitment of
staff or pro&ision of cre*it. These instructions ha&e #ecome an essential part of the culture of the #ank.
"m#lem + $#%ecti&es
"MB5"M.
The sun rising o&er the fi&e ,a&y lines sym#oli7es the *a,n of ne, era of progress an* prosperity for the lan* of
fi&e ri&ers an* hence for Pakistan. )urthermore the main o#%ecti&es of the inclusion of cotton flo,ers an* the spikes of
,heat in the em#lem is firstly to represent the fact that the economy of the Pun%a# stan*s on its agriculture pro*uces
especially cotton an* ,heat an* secon*ly to highlight the emphasis ,hich the #ank is to place on *e&elopment of agro3
#ase* in*ustry.
$B?"CT0/"S.
The Bank of Pun%a# #eing a commercial #ank performs all those function as are attri#ute* to such #anking
institutions #oth in the areas of resources mo#ili7ation an* in&estment. 0t is pro&i*ing fun*s for commerce. tra*e. in*ustry.
an* agriculture #ut its main emphasis is on accelerate* *e&elopment of agro3#ase* in*ustry. So the main o#%ecti&e of the
#ank is to channeli7e the resources into sectors. ,hich ha&e suffere* from neglect. $ther o#%ecti&es inclu*e*.
'. To pro&i*e spee*ier ser&ices to the common man.
:. To pro&i*e the highest rate of return to the sharehol*ers #y achie&ing goo* profita#le gro,th.
3. To enter into financing contracts an* to mo#ili7e resources in local an* no, in foreign currencies consistent ,ith
the o#%ects of the #ank.
The ne,ly electe* @o&ernment has ple*ge* to continue economic reforms an* policies of the pre&ious regime
resulting in the @o&ernmentCs enhance* a#ility to engineer its economic future. ,hich reinforces the confi*ence that has
emerge* *uring :((:. The success an* gro,th. ho,e&er. largely *epen*s on the *egree to ,hich the @o&ernment can
*eli&er on its political agen*a an* ho, smoothly the transition of po,er can ,ork to,ar*s #ringing a#out a greater *egree
of optimism amongst in&estors an* the #usiness community.
;lthough The Bank of Pun%a# are optimistic a#out the future outlook for Pakistan an* are confi*ent that e-pecte*
@1P gro,th target ,ill #e achie&e* yet the geopolitical situation particularly ,ith reference to 0ra9 the year :((3 appears
to #e far more challenging ,here the factors #eyon* our control may a*&ersely affect our economy. Moreo&er. the
pre&ailing money market scenario ,ith e-tremely lo, interest rates an* stagnant pri&ate sector cre*it is a serious *eterrent
to the #anking sector gro,th. This situation ,ill force the #anks to shift their focus from con&entional #anking approach to
retail #ase* consumer finance pro*ucts an* ser&ice an* the #anks taking lea* in this shift process ,ill #e least affecte* #y
the pre&ailing unfa&ora#le interest rate scenario.
The mission to transform The Bank of Pun%a# into a mo*erni7e* #usiness oriente* institution is sailing smoothly
an* in this *irection #y no, computeri7ation of '66 #ranches has #een complete* successfully ,hile the remaining 2
#ranches ,ill also #e computeri7e* #efore the :((3 year en*. Moreo&er. *uring :((3 ,e ,ill also intro*uce ;TM facility
at our selecte* #ranches for ,hich your #ank has %oine* MCB s,itch an* the agreement has #een signe*. 0n a**ition to
offering ;TM facility ,e ha&e aggressi&ely em#arke* on pro&i*ing real time inter3#ranch #anking ser&ices ,ithin :((3.
The #ank is one of the sponsors of Trust Management Ser&ices P&t. 5imite* #esi*es #eing a co3sponsor of Trust Mo*ara#a
a Mo*ara#a company incorporate* in Pakistan un*er the Mo*ara#a companies an* Mo*ara#a D)loatation an* controlE
$r*inance. '!(. ;uthori7e* Mo*ara#a )un* an* pai* up )un* of the sai* unit in 4s. 6(( million an* 4s. '6( million
respecti&ely.
The Bank is one of the sponsors of Trust 5easing Corporation 5imite* a pu#lic limite* company esta#lishe* un*er the
Companies $r*inances. '!4. ;uthori7e* pai* up capital of the company is 4s. :6( million an* 4s. '(( million
respecti&ely.
)irst Pun%a# Mo*ara#a Ser&ices DP&tE 5t*. esta#lishe* in Pakistan un*er Companies $r*inance. '!4 an* register un*er
Mo*erate Companies an* Mo*ara#a D)lotation an* ControlE $r*inance. '!( is ,holly o,ne* su#si*iary of the #ank.
;uthori7e* fun* of this Mo*ara#a is 4s. 6(( million ,here as pai* up fun* is 4s :(( million.
Topics Page No.
Management Hierarchy '4
Categories of Ser&ices '6
1i&ision an* 1epartments '2
4egions '

The ser&ices in The Bank of Pun%a# are classifie* in *ifferent categories.
8 Presi*ent
8 "-ecuti&e /ice Presi*ent D"/PE
8 Senior /ice Presi*ent DS/PE
8 /ice Presi*ent D/PE
8 ;ssistant /ice Presi*ent D;/PE
8 $fficer @ra*e 0
8 $fficer @ra*e 00
8 $fficer @ra*e 000
8 Cash $fficer
8 Clerical Staff
Non3Clerical Staff
8 1ri&er
8 @uar*s
8 @ate =eepers
8 Tea Boys
10/0S0$N 1"P;4TM"NTS
;1M0N0ST4;T0$N $P"4;T0$NS BFS0N"SS 1"/"5$PM"NT C4"10T
0NT"4N;T0$N;5 )0N;NC" 4"C$/"4G ;F10T + 0NSP"CT0$N T4";SF4G
$4@;N0H;T0$N + M"TH$1S 0N)$4M;T0$N;5 + T"CHN$5$@G $))0C"4S T4;0N0N@
0NST0TFT" SH;4"S 5;> ST;T0$N"4G P5;NN0N@ 4"S"4CH + PFB50C;T0$N
H";1"1 BGI 3 @"N"4;5 M;N;@"4 H";1"1 BGI 3 CH0") M;N;@"4
Total Branches 34 Total Branches 64
Total Branches 43 Total Branches 6(
Total Branches (6 Total Branches 36
Topics Page No.
8 ;*ministration :'
8 $perations ::
8 Business 1e&elopment :3
8 Cre*it :4
8 0nternational :6
8 )inance :6
8 4eco&ery :2
8 ;u*it ;n* 0nspection :
@.M
This *i&ision *eals ,ith the pro#lems relates to the staff a*ministration. The main function of this *epartment is to arrange
a comprehensi&e training program for recruite* staff. $thers function inclu*esI
4ecruitment
Staff remuneration
Placing the staff
Pro&i*ing an* *efining the opportunities for career *e&elopment an* gro,th
1e&ising an* implementing ser&ices rules.
Promotion an* *emotion
Suspension an* termination
Transportation
Security. health an* #enefits.
@.M

This 1i&ision is concerne* ,ith the operational ,orking in general #anking. ,hich is concerne* ,ith the routine
,orking of the #ank. ;ny pro#lem or am#iguity arise in any #ranch ,orking are rectifie* an* suggeste* for correction #y
this *i&ision. This 1i&ision usually takes technical proce*ures in&ol&e* the *ecisions like commissions. ;n* also.
The maintenance of the e-isting #uil*ing o,ne* #y the #ank.
$pening ne, #ranches an* their maintenance.
0t also *eals ,ith the stationery pro#lems of the #ank.
@.M
0t is the other name of the marketing *i&ision. 0t promotes the #ank cause i.e. *eposits an* ,ork for the o&er all
*e&elopment of the #ank. 1eposits are the life#loo* of any #ank. >ithout *eposits #ank cannot perform any function of
#anking. This *i&ision fi-es the *eposits target of e&ery #ranch #y keeping an* eye o&er the potential customers in the
area. 0t gi&es moti&ation to #ranches to achie&e their targets through *ifferent campaigns an* schemes like cash pri7es an*
special increments. 0t pu#lishes a #ulletin in ,hich those #ranches are encourage* ,ho achie&es their monthly targets. The
main function is to *e&elop an* attract the customers an* *epositors. 0t also managesI
;*&ertising policy
Sales promotion.
Schemes offere* #y the #ank.
@.M
This *i&ision control o&er all cre*it operations like sanction of loans. 0nlan* Bill Purchase* D0BPE an* also keeps
check o&er securities mortgage. hypothecating or ple*ge. 0t also fi- the rate of mark3up an* other *ecisions concerning
,ith the cre*it.
There is a cre*it committee. ,hich consists of senior officersJ Branches sen* the cre*it proposal to hea* office
cre*it *i&ision. Cre*it committee appro&es it after making a through analysis. 0t also
Prepare the policies regar*ing the sanctioning loan
Monitor loans an* cre*it
5ook after the portfolio of the #ank
1efine cre*it limits against specifie* securities.
@.M
This *i&ision is pro&i*ing important ser&ices to the #ank regar*ing the matters of 0nternational Tra*e. 0mport. "-port
5etters of Cre*it. Tra&elers che9ue etc.
0t *e&elops K Correspon*ent 4elationshipL ,ith others on commission #asis an* this helps to *eal ,ith the clients
ha&ing import e-port #usiness.
0t han*les treasury operations.
The Marketing an* Spot 0nspection cell. ,hich ,ere intro*uce* #y the #ank. are sho,ing positi&e results in terms
of achie&ing foreign currency *eposit targets an* other foreign relate* #usiness.
@.M
0t controls the routine financial matters. The permission of special e-pen*iture incurre* in the #ranches. an*
other such cases. The *aily position an* H$ "-tracts are *aily sent to this *i&ision #y all the #ranches. This *i&ision not
only estimates the profit an* loss of e&ery #ranch #ut also prepare o&erall income statement an* #alance sheet of the
complete #ank. 0t also keeps recor* of total *eposits of the #ank an* then their classification in the form of loans into
*ifferent sectors of economy. The #asic functions areI
Monitoring the fiscal an* financial policies of the #ank.
1eals in e-ploring means for in&esting surplus #ank fun*s.
Maintenance an* in&estment of @ratuity an* Pension )un*s of the employees.
@.M
The reco&ery *i&ision. ,hich ,as esta#lishe* in '!!4 to assist in regulari7ing the *ifficult loan accounts. has
ren*ere* &alua#le ser&ices in this respect. To effect reco&eries in an efficient manner. a policy has #een frame* in
accor*ance ,ith the gui*elines issue* #y the State Bank of Pakistan Moreo&er. reco&ery cells at regional le&els ha&e #een
set up to assist the hea* office. This *i&ision looks after the matters of reco&ery of loans ,ith the assistance of legal
a*&isors.
@.M
This *epartment ensures appropriate system of checks an* #alances. 0t checks all the irregularities. errors an* forgeries if
any. un*er the rules an* regulations forme* #y the @o&ernment of Pun%a#. )or this purpose it *oesnCt only keep an* eye on
the #ranches in their &icinity #ut also con*uct surprise an* comprehensi&e au*its of the #ranches. This strategy has
impro&e* ,orking at the #ranch le&el. 0t not only points out the *iscrepancies #ut also tries to sol&e it. Surprise au*it
maintain a goo* check on the o&er all ,orking of the #ranch especially of the si*e of finance.
Topics Page No.
Ser&ice Pro&i*e to Customer 3(
1eposit Section 3'
Nature of 1eposit 33
;ccount $pening Section 34
Clearing 1epartment 36
4emittance 1epartment 32
;*&ancesBCre*it 1epartment 43
Securities for ;*&ances 44
;griculture + "conomy 6(
The follo,ing are the ser&ices #eing pro&i*e* to the claims.
;cceptance of *eposits
@ranting of loans
Transaction )oreign "-change Ser&ices
4emittance 3 Collection
SP"1);M3 instant )un* Transfer Ser&ice
5ockers facility
Ftility Ser&ices
The Bank of Pun%a# attaches specials importance to the fee earning #usiness an* #usiness #ase remuneration. ;s
part of *i&ersification of the #anks utility ser&ices. the collection of #ills of 0NST;PH$N" Dmo#ile phone net,orkE ,as
a**e* to e-isting collection arrangements for >;P1;. SF0 @;S. >;S;. PTC5. an* P;=T"5. By using #ankCs e-tensi&e
#ranch net,ork. effort ha&e #een to ma*e to ma-imi7e the e-ploitation of this source in &ie, of its rich potential of
yiel*ing #usiness an* *eposit *irect earning of
commission.
0n mo*ern times &ery fe, #usiness enterprises are carrie* out solely ,ith the capital of the o,ners. Borro,ing fun*s from
*ifferent sources has #ecomes an essential feature of to*ay #usiness enterprise. But in the case of a entire #anking system is
#ase* on it. The #orro,e* capital of the #ank is much greater then their o,n capital. Banks #orro,ing is mostly in the
form of *eposits.
These *eposits are lent out to *ifferent parties. The larger the *ifference #et,een the rate at ,hich the *eposits are
#orro,e* an* the rate at ,hich they is lent out the greater of the profit margin of the #ank. )urthermore. the larger the
*eposit the larger ,ill #e the fun*s a&aila#le for employmentJ larger the fun*s lent out the greater ,ill #e the profit of the
#ank.
To recei&e the *eposit is the #asic function of all commercial #anks. The #ank *oes not recei&e these *eposits for
sa&e keeping purpose only. #ut they accept *eposits as *e#ts. >hen #anks recei&e *eposit from a customer. the relationship
of a *e#tor an* cre*itor is esta#lishe* ,here #y the customer #ecome the cre*itor an* the #ank a *e#tor. >hen the #ank
recei&es amount of *eposit as a *e#tor. it #ecomes the o,ner of it. 0t may. therefore use it as *eems appropriate. But there
is an implicit agreement that the amount o,ne* ,oul* #e pai* #ack #y the #ank to the *epositor after a specifie* perio*.
CF44"NT 1"P$S0TS
P4$)0T + 5$SS SH;40N@ ;CC$FNT
SH$4T N$T0C T"4M 1"P$S0TS
C;55 1"P$S0T
T"4M 1"P$S0T 4"C"0PTS DT14E.
CF44"NT 1"P$S0TSI
0n this type of account the client to allo,e* to *eposit or ,ith*ra, money as an* ,hen he likes. Because of their
nature. these *eposits are treate* as the current lia#ilities of the #ank. There is not profit on such *eposits. Fsually this
type of account is opene* #y the #usiness.
P4$)0T + 5$SS SH;40N@ ;CC$FNT.
This type of accounts is one step to,ar*s the 0slami7ation of #anking system in Pakistan. There are t,o types of
P5S ;ccounts.
P5S Sa&ing ;ccount
P5S3T14 DProfit + 5oss Sharing Term 1eposit 4eceiptsE.
P5S sa&ing accounts can #e opene* ,ith the minimum sum of 4s. '(( an* P5S3T14 account can #e opene* for a
sum of 4s. '((( or a#o&e. Profit is pai* on #oth types of the P5S account on half yearly #asis.
Fn*er P5S sa&ing account the *epositor un*ertakes to share profit or loss on the *eposits earne* or sustaine* #y
the #ank. Secon*ly the #ank is at the li#erty to in&est the fun*s of the *eposits in any a&enue. it *eems fit. The P5S
*eposits are in&este* in non3intereste* channels.
SH$4T N$T0C" T"4M 1"P$S0TS DSNT1E
This kin* of *eposit is for a short perio*. The *epositor may ,ith*ra, his *eposit at any time #y gi&ing se&en
*ays notice to the #ank. This type of *eposit facilitates the *epositor to ,ith*ra,n his amount ,ith interest of the *eposite*
perio*.
C;55 1"P$S0T
Call *eposits are the sorts of *eposits. ,hich are *eposite* ,ith the #anker against any ten*er. This is ,ithout
interest *eposit. This may #e ,ith interest pro&i*e* the *epositor has agree* to keep this amount ,ith the #ank for some
fi-e* perio*.
T"4M 1"P$S0T 4"C"0PTS DT14E
This type of *eposit is same as the SNT1. The *ifference is that SNT1 is for short perio* D23 3( *aysE ,hile T14
is for long perio* D' month up to 6 yearsE.
;ccount opening is the first step to,ar*s esta#lishing a relationship #et,een the customer an* the #ank. The
Bank of Pun%a# is offering #asically t,o types of accountI
CF44"NT 1"P$S0T ;CC$FNT
P4$)0T + 5$SS SH;40N@ ;CC$FNT
The necessary con*ition for a customer. ,ho ,ants to open an account ,ith the #ank. is intro*uction. ,hich is
prefera#ly #y the #ank officers or any account hol*er of the #ank. The *ifferent categories of accounts that are a&aila#le are
as un*er.
0N10/01F;5 account
?oint ;ccount
Partnership ;ccount
5imite* Company ;ccount
Clu#s. Society. ;ssociation. or Trust ;ccount
SNT1
T14
)oreign Currency 1eposit
Clearing is the most important *epartment of the #ank performing &arious function.
Clearing HouseI
; clearinghouse is an organi7ation of the mem#er #anks. ,orking un*er SBP an* ,hich is for the purposes of
setting inter #anks claim resulting from transmission of fun*s from one #ank to another. The #ranch che9ueBinstruments
are cre*ite* into the account of the customer. The clearing can #eI
$ut,ar*
0n,ar*
$ut,ar* Clearing
The instrument collecte* or store* #ank ,ise an* a sche*ules is prepare* separately for each #ank mentioning the
total num#er of instruments an* the amount of the instruments. Then these are recor*e* in a register calle* K$FT>;41
C5";40N@ 4"@0ST"4L then a main sche*ule is prepare* sho,ing the total num#er of che9ue an* their aggregate
amount #eing presente* in the clearing.
The che9ueBinstruments are han*e* o&er the clearing #ranch. Central clearing #ranch issue C4"10T ;1/0C" to
the #ranch for passing cre*it to its customer imme*iately. The #ranch on recei&ing cre*it a*&ice *e#its the clearing
account an* cre*it the respecti&e customer accounts.
0n,ar* Clearing
$n recei&ing che9ueBinstruments from central clearing #ranch. the in charge checks the num#er an* amount of
che9ue recei&e* in clearing must tally ,ith the main sche*ule recei&e* from central clearing #ranch.
These che9ueBinstrument are entere* in K0N>;41 C5";40N@ 4"@0ST"4L for the che9ueBinstrument passe* in
clearing is a cre*it a*&ice for the aggregate amount of che9ue passe* in clearing is prepare*. *ra,n on central clearing
#ranch.
4eser&es at State Bank of Pakistan.
1eposit hel* #y #ank at SBP ser&es as check clearing an* collection #alances. 4ather than physically transferring
fun*s #et,een #anks. check clearing an* collection can #e *one #y simply *e#iting or cre*iting a #ankCs account at SBP.
4emittance is a ma%or function of the #ank. 0t is the transfer of money from one place to another place. The nee* for
remittance is commonly felt in commercial life particularly an* in e&ery*ay life generally.
By pro&ing this ser&ice to the customers the Bank of Pun%a# earns a lot of income in the form of ser&ice charges.
The Bank of Pun%a# *eals ,ith the follo,ing type of remittancesI 3
1eman* 1raft D11E
Mail Transfer DMTE
Telegraphic Transfer DTTE
Pay $r*er
No, ,e *iscuss all these in *etailI 3
1"M;N1 14;)T D11EI
1eman* *raft is a ,ritten or*er gi&en #y the one #ranch of a #ank on #ehalf of customer to another #ranch of the same
#ank to a certain amount to the certain person.
Proce*ure for Prepare 1eman* 1raft.
'. ; *raft &oucher is fille* ,hich contains the follo,ing information
Name of the parties in&ol&e*
1ate
;mount to #e sent
;ccount num#er Dif 11 is crosse*E
:. ; cre*it &oucher is fille* in or*er to get the e-cise *uty an* e-change commission.
3. The sen*er *eposits the total amount of the t,o &ouchers i.e. the *e#it an* cre*it &ouchers.
4. Then the cashier sen*s the cash receipt &oucher to the accounts *epartment an* the account recor*s the amount
pai* in his cash scroll.
6. ;ccountant gi&es the 11 leaf along ,ith the 11 &oucher to his assistant ,ho recor*s the sen*erCs name. amount
an* recei&erCs name. ;fter ,riting all the information in the 11 register he gi&es it to the officer along ,ith the 11 for
authentication.
6. ;fter authentication the 11 is han*e* o&er to the sen*er an* #ank sen*s the a*&ice to the concerne* #ranch. So
,hen the party presents the 11 in the concerne* #ranch its payment coul* #e ma*e.
Parties in&ol&e* in the 1eman* 1raft
The follo,ing parties are in&ol&e* in *eman* *raftJ
'. Purchaser or Sen*er
The purchaser is the person ,ho sen*s the money to a particular person paya#le at a certain #ranch.
:. 0ssuing or 1ra,ing Branch
The #ranch from ,here the *eman* *raft is issue* to another #ranch of the same #ank.
3. 1ra,er Branch
Branch in ,hich the *raft has *ra,n an* calle* upon to pay the amount.
4. Payee
The person ,ho is entitle* to recei&e the amount after presenting the *eman* *raft in the *ra,er #ranch.
M;05 T4;NS)"4 DMTEI
0t is the transfer of money from one #ranch to another #ranch of the same #ank through mail ser&ice. 0n mail transfer there
is no nee* of a*&ice as the amount is *irectly cre*ite* to the recei&erCs account.
Proce*ure
'. )irst a &oucher is fille* in ,hish the sen*er ,rites the amount to #e sent. name. account num#er of the recei&ing
person ,ith the #ranch name an* *ate.
:. ; cre*it &oucher is fille* in or*er to *e*uct e-change. postage charges accor*ing to the amount of the mail
transfer.
3. The sen*er *eposits the total amount in the cash *epartment.
4. The cash officer gi&es the &ouchers to the officer after affi-ing recei&e* cash stamp an* ,riting the amount in re*
ink.
6. Then the officer ,rites the amount pai* in the cash scroll an* gi&es the MT to his assistant.
6. MT leaf is fille* accor*ing to the information pro&i*e* in cre*it &oucher. He also ,rites the same information in
the MT register. Then he gi&es the MT leaf an* MT register to the officer for authentication.
T"5"@4;PH0C T4;NS)"4 DTTEI
This is the most urgent metho* of remitting the money from one place to another place. This metho* is use* ,hen the
sen*er *esires to sen* urgently. in this case the sen*er re9uest the manager of the #ranch to issue TT.
Proce*ureJ
)or sen*ing the TT the manager an* officer apply a test. 0n the test the manager an* officer uses a co*ing techni9ue. They
,rite their o,n co*e num#ers. ,hich is allotte*. to them as the #ank #ranch co*e. ;fter making all the conformation the
concerne* #ranch makes the payment to the recei&er. 0f the sen*er ,ants to con&ey the same message through telephone
then he has to pay the charges of telephone along ,ith the TT charges. )irst the person *eposit the TT amount along ,ith
the charges through the cre*it &oucher then his TT sent to the rele&ant #ranch.
Pay $r*er DP$EI
; pay or*er is a ,ritten or*er issue* #y the #ank on its o,n #ranch. *ra,n upon an* paya#le #y itself to pay a specifie*
sum of money to the person. The purpose of a pay or*er is to transfer the fun* from one place to another. 0t is usually not
issue* in fa&or of the parties of other cities. Fsually the pay or*er is issue* for the local transfer of money from one person
to another or from the person to any other *epartment. 0t is use* for *ifferent purposes. The purpose may #e the repairs of
the #ranch or reno&ation of the #ranch.
Proce*ure.
The proce*ure of a pay or*er &aries ,ith the nature of the purpose. 0f the ,ork is of huge amount then first the manager
,rites a letter to the Honal Chief in or*er to get sanction of the ,ork. Then the a*&ertisement of the ,ork is gi&en in the
ne,spaper in or*er to in&ite the contractors. But if the ,ork is small then the #ranch manager has *iscretionary po,er to
select the party ,hose rate is lo,est. ;fter finishing the ,ork the contractor su#mits the #ill of ,ork on his stamp pa*.
Then the #ank issues a pay or*er. against the pay or*er the contactor gets the amount from the issuing #ranch.
KMa%or source of #ankCs 0ncomeL
0t is the loan function. ,hich pro*uces the ma%or person of #ankCs income. an* as such it is the ma%or areas of professional
#ankerCs concern an* attention.
Principles ,hile a*&ancing
Basically there are fi&e principles that must #e *uly o#ser&e* ,hile a*&ancing money to #orro,ers.
Safety
5i9ui*ity
1isposal
4emuneration
Suita#ility
)orms of 5en*ing
Many there are t,o types of a*&ancesI
Short3term Dmaturity ,ithin one yearE
5ong term Dmaturity ,ith the perio* of more than one yearE
Ho,e&er they are further classifie* asI
4unning )inance
1eman* )inance
Cash )inance
5etter of @uarantee
4unning )inance
This form of finance ,as pre&iously kno,n as Ko&er*raftL. >hen a customer re9uires the temporary
accommo*ation. his #ank allo,s ,ith*ra,al his account in e-cess of cre*it #alance. ,hich the customer has in its account.
a running finance occurs. The accommo*ation is thus allo,e* collateral security. >hen it is against collateral securities. it
is calle* a KSecure* 4unning )inanceL an* ,hen the customer cannot offer any collateral security e-cept his personal
security. accommo*ation is calle* a KClean 4unning )inance.L The customer is in a*&antageous position in running
finance #ecause he has to pay the mark3up only the #alance outstan*ing against him on *aily pro*uct #asis.
1eman* )inance.
This is common form of financing to commercial an* in*ustrial concerns an* is ma* a&aila#le either against
ple*ge or hypothecation of goo*s pro*uce or merchan*ise. 0n 1eman* )inance the party is finance* up to a certain limit
either at once or as an* ,hen re9uire*. The party *ue to facility of paying mark3up only on the amount it actually utili7es
prefers this form of financing.
Securities for ;*&ances.
Ple*ge
Hypothecation
@uarantee
0n*emnity
Charge
;*&ances against K Stock "-change Securities
;*&ances against immo&a#le property KMortgageL
Ple*gesI
K The #ailment of goo*s as security for the payment of the *e#t an* the performance of a promise is calle*
ple*ge.L
Ple*ge is the characteristic mo*e of taking goo*s as the security an* the ple*ge occurs ,hen the goo*s or *ocument of the
title thereto or the securities are *eli&ere* #y the customer to his #anker to #e hel* as security for the repayment of the
a*&ance.
0n a ple*ge. the o,nership remains ,ith the ple*ger #ut the ple*gee has the e-clusi&e possession of the property
until the a*&ances in repai* in full. ,hile in case of *efault the ple*gee has the po,er of sale after gi&ing *ue notice.
People ,ith the safe custo*y of goo*s. ,hen entruste* ,ith the goo*s for the specific purpose may not make the &ali*
ple*ge.
Hypothecation.
K; legal transaction ,here #y goo*s may #e ma*e a&aila#le as the security for a *e#t ,ithout transferring either
the property or the possession to the le*ger.L
>hen the property in goo*s is in charge* as the security for a loan from the #ank #ut the o,nership an* the
possession is left ,ith the #orro,er. the goo*s are sai* to #e hypothecate*. The essence of the hypothecation is that neither
the property in the goo*s nor the possession of them passes to the len*er. #ut the security is guarantee* #y means of 5etter
of Hypothecation. ,hich usually pro&i*es for a #ankerCs charge of the hypothecate* goo*s.
@uaranteesI
K ; contract to perform the promise. or *ischarge the lia#ility of the thir* person in case of his *efault.L
This is so ,hen an application for the a*&ances cannot offer any tangi#le security. the #anker may rely on the
personal guarantees to protect himself against loss an* a*&ances or o&er*raft to the applicant. Therefore a guarantee may
#e either ,ritten or $ral. The @rantee is a promise #y one person calle* the guarantor or security to another for ans,ering
the present or future *e#t if a secon* person calle* the KPrincipal 1e#torL.
0n*emnityI
K ; contract #y ,hich one party promises to sa&e the other from loss cause* to him #y the con*uct of the promisor
himself or #y any other person is calle* the contract of in*emnity.L
Thus in an in*emnity. the promisor is the only person ,ho #ecomes lia#le to the promise if the latter suffers a loss
on account of his *oing something at the e-press *esire of the former.
ChargeI
>hen immo&a#le property of one person is #y act of parties. or operation of la,. ma*e security for payment of
money to another. an* the transaction *oes not amount to mortgage. the latter person is sai* to ha&e the charge on the
property. an* all the pro&isions herein #efore containe* ,hich apply to a simple mortgage shall. so far as may #e apply to
such charge.L
This means that a charge is a right of payment out of certain property. The charge can #e create* #y the act of
parties or #y the operation of the la, an* although the property is ma*e a security the payment of loan. is still not he
mortgage.
;*&ances ;gainst Stock "-change Securities.
Stock "-changes Securities is the &ast term ,hich co&ers all gilt e*ge* securities such asI
)e*eral an* Pro&incial @o&ernment Bon*s
Post trust or Municipal Bon*s
Shares an* *e#entures
Banker. as security for a*&ances to the customer. fre9uently accepts these securities. ;*&ances can #e againstI
Preference Shares
$r*inary Shares
Preferre* Shares
0t can #e
8 Auote* or Fn9uote*
8 4egistere*
8 Bearer
8 0nscri#e*
;*&ances ;gainst 0mmo&a#le Property DMortgageE.
; mortgage is the transfer of an* interest in specific immo&a#le property for the purpose of securing the payment of the
money. a*&ance* or to #e a*&ance*. By ,ay of loan. an* e-isting *e#ts or the performances of the engagement this may
rise the pecuniary lia#ility.
The transfer is calle* the NmortgagerC an* the transferee the NmortgageeC the principal money an* interest of ,hich
payment is secure* for the time #eing an* instrument #y ,hich the transfer is effecte*. is calle* the letter of the mortgage
*ee*.
;@40CF5TF4" ;N1 "C$N$MG
;&aila#ility of a*e9uate flo,s of cre*it for in*ustry an* agriculture are a sine 9ua non for the gro,th an*
*e&elopment of an economy. This ac9uires a**e* importance ,hen agriculture is the mainstay of the economy as also the
sector ,here the #ulk of the poor are concentrate*. @ro,th an* pro*ucti&ity in PakistanOs agriculture has slo,e* *o,n in
recent years an* is. therefore. of serious concern gi&en its importance for the economic prosperity of the country. ;part
from &arious other ,eaknesses in the infrastructural support of the agricultural sector. ina*e9uacy an* lack of efficacy of
cre*it. flo,s to support agriculture relate* acti&ities has #een a ma%or constraining factor.

;griculture is the largest sector of the economy. 0t contri#utes :6 percent to @1P. pro&i*es ra, materials to (
percent of in*ustry an* employment to o&er 6( percent of the population. This is a sector that has the shortest gestation
perio* for in&estments an*. therefore. a remarka#le capacity to #ring a#out a turn aroun* in the economy. This important
sector in Pakistan is suffering from a num#er of mala*ies an* is conse9uently ,itnessing stagnation in pro*ucti&ity.

1ue to policy an* a*ministrati&e e-igencies. the sa&ings in the agriculture sector remain lo, an*. therefore. the
sector has perpetually remaine* capital star&e*. The pricing of input an* output in agriculture o&er the years has force* the
ma%ority of farmers in Pakistan to plough #ack their incomes into agriculture an* non3institutional cre*it. an* has more
often than not ser&e* to sap their potential earnings. Nee*less to say. that shortage of sa&ings an* lack of a&aila#ility of
capital is one of the ma%or reasons for po&erty in the country. The agricultural an* rural sectors in Pakistan in general an*
in Pun%a# in particular are. therefore. suffering from se&ere un*er3*e&elopment. Fn*er a *esira#le *e&elopment mo*el.
Pun%a# canI
0ncrease agricultural pro*uction to meet the countryOs re9uirement of essential foo*s items an* in*ustrial ra,
materials.
1e&elop agro3#ase* in*ustry in the rural sector for economic &alue a**itionJ
@enerate a**itional employment opportunities in rural as ,ell as a*%acent small to,nsBcitiesJ
Control massi&e migration to the ur#an centers that in turn is causing a num#er of social. a*ministrati&e Di.e. la,
an* or*erE an* economic pro#lems for the ur#an areas.
"le&ate po&erty an* impro&e the income generating capacity of the agri3#ase* population.
Ne&er #efore in the history of Pakistan. has the *e&elopment of the agricultural an* foo* sectors #een as critical as at
this %uncture an* appropriate short an* long term measures are necessary for its re&i&al. sustenance an* sta#ility. Supply of
cre*it #y )inancial 0nstitutions for meeting the specific nee*s of agriculture an* rural sectors are essential components for
impro&ement in #oth short an* long3term *e&elopment of the country. This has assume* e&en greater importance in the
present situation of *eclining ,ater a&aila#ility. Per acre. pro*uction is plummeting. The per acre yiel* of most of the
crops is stagnant rather *iminishing. The most important factors responsi#le for this *o,n,ar* tren* in pro*ucti&ity areI 3
);CT$4S 4"SP$NS0B5" )$4 5$> G0"51 P"4 ;C4"I

P 0m#alance* fertili7er use
P 5ack. a&aila#ility of certifie*. an* goo* 9uality see*s
P 0mproper control of pests an* ,ee*s

SC;4C0TG ;N1 0N"))0C0"NT FS" $) >;T"4I

P Natural an* mechanical ,ater resources.

N$N3FS" $) M"CH;N0H"1 );4M0N@ P4;CT0C"SI
5;C= $) "1FC;T0$N ;N1 4"S$F4C"S. M$T0/;T0$N T$ FS" ;1/;NC"1 T$$5S )$4
;@40CF5TF4"I
H0@H C$ST. 5$> $FT PFT. FNS=055"1 5;B$F4 0NT"NS0/"
N$N3;/;05;B050TG $) C4"10T ;N1 )0N;NC0;5 ;SS0ST;NC" T$ TH" ;@40CF5TF4" S"CT$4
.
The importance of a&aila#ility of cre*it to the agriculture sector has al,ays #een recogni7e* #y @o&ernment an*
gi&en Top Priority. Speciali7e* institutions ha&e #een in place for a num#er of years. Ho,e&er. these institutions ha&e
faile* to reali7e the full potential from the sector an* at times contri#ute* to its further *eterioration. 0t is therefore of
paramount importance that The Bank of Pun%a# through ,ell thought out policies ensures that it *oes not repeat the follies
of the past.
; num#er of institutions are in the fiel* yearning to o#tain results. >e in The Bank of Pun%a# ,ill support the role of
the @o&ernment in pro&i*ing much nee*e* support to the agriculture sector #ut ,ith a *ifference. The *ifference #eing that
instea* of su#si*i7ing the nee*s ,e ,ill #e acti&e participants in economically &ia#le pro%ects there#y safeguar*ing the
in&estments of the Bank.
; precon*ition to len*ing #y the Bank ,ill #e an un*ertaking from the customersB#orro,ers not to #orro, from any
other source ,hatsoe&er. This is important to ensure against any multiple #orro,ing an* more importantly to restrain the
#orro,er from falling into a *e#t trap.
The Bank of Pun%a# has #een at the forefront in contri#uting to the ;griculture Sector at a limite* scale an* has
initiate* schemes in harmony ,ith the State Bank of Pakistan appro&e*Beligi#le programmes for the assistanceBhelp of the
agriculture farmers.
Presently. the Bank is financing farmers in some specific areas only. The State Bank of Pakistan has e-pan*e* the
scope of its scheme an* inclu*e* a num#er of items eligi#le for cre*it un*er ;gri3finance Schemes.
0n terms of the importance. priority an* current nee*s. >e ha&e short liste* the items from the State Bank of
PakistanOs list pro&i*e* un*er co&er of its Circular letter No. ;C1B'(44B'(6(BP1BP3(B:((' *ate* :6.(4.:(('.

The list of eligi#le items for ;gri3Cre*it is mainly *i&i*e* in t,o sectorsJ i.e.

8)arm Cre*it. ;n*
8Non3)arm Cre*it
)arm Cre*it is further #ifurcate* intoI
Short3Term
Me*ium3Term
5ong3Term Cre*it.
The priority items. ,hich are recommen*e* for inclusion in our schemes. are gi&en here un*erJ
);4M C4"10T DSH$4T T"4ME
"M0ST0N@I D=issan 1ost ;griculture )inance SchemeE Pro*uct Bpurpose of )inanceE See*s. )ertili7ers. Pestici*es.
Her#ici*es. >ee*ici*es. ;ll types of la#or an* ,ater charges are alrea*y em#o*ie* in our package financing. i.e.. ((( Per
;cres Dno changeE
P4$P$S"1I
DPro*uct Bpurpose of )inanceE
'. $rchar* an* Nursery :. Manual Sprayers
3. Sericulture 4. ;piculture
)arm Cre*it DMe*ium + 5ong TermEI
"M0ST0N@I Tractors
DPro*uctBpurpose of )inanceE
P4$P$S"1I
DPro*uct + Purpose of )inanceE
Tu#e3>ell
0nstallation of Tu#e3>ell. ,ater management. e9uipment. mo*ules + cul&ert. lining of channels etc. Solar energy
plants an* pumps for irrigation. e9uipment for sprinkleBtrickleB*rip irrigation system.
Mechani7ation Support
;gri3implements. "9uipment. i.e. trailers an* thrashers. po,er tillers. po,er + #oom
sprayers. ploughs an* culti&ators. ri*ggers B *rills. rota&ators. *iggers. sa, machines for crates making. press machines for
,heat stra, an* *ry fo**ers.
)arm Transport
5ease finance for purchase of Motor Cycles an* small /ans for Milk an* other agri pro*ucts transportation
to local market.
0slah3e3;ra7i
Precision lan* le&eling + reclamation. soil impro&ement. em#ankment. lan* formation an*
lan* impro&ement. laser le&eling etc.
Non3)arm Cre*itI D5i&estock 1e&elopmentE
)or the time #eing. ,e *o not propose to e-ten*ing Non3)arm Cre*it. i.e. for #ig 1airy )arms. Poultry )arm #ut
,ill accommo*ate e-isting #orro,ers an* esta#lishe* small in*i&i*ual farmers #y financing li&estock. D@oat. sheep. cattle
+ fattening animalsE on a limite* scale to re&i&e. accelerate an* supplement the income generating capacity of the small
farmers.


Topics Page No.
1eposit 6!
;*&ances 6(
0n&estment 6'
Capital + 4eser&e 6:
Total ;ssets 63
Profit 64
@ro,th of Sharehol*ers 66
Categories of Sharehol*ers 66
Gears 1eposits D4s in MillionE
'!!6 ':''6
'!!6 '4:66
'!!2 '62!2
'!! '2'('
'!!! '6('!
:((( '2(:
:((' '!(34
:((: :3262

Gears 1eposits D4s in MillionE
'!!6 :!(!
'!!6 4:(
'!!2 6(66
'!! 66':
'!!! 6'6'
:((( 6'44
:((' 622:
:((: 66:'

Gears 1eposits D4s in MillionE
'!!6 664!
'!!6 6436
'!!2 6!'!
'!! 66'
'!!! 4!!'
:((( 266
:((' 6!2(
:((: :!6

Gears 1eposits D4s in MillionE
'!!6 '3!
'!!6 '6(!
'!!2 '62:
'!! '2!6
'!!! ':3
:((( :'(
:((' :3!'
:((: :3'3

Gears 1eposits D4s in MillionE
'!!6 '434(
'!!6 '64'!
'!!2 '6':
'!! '!6
'!!! ':'6
:((( :':26
:((' :4(:
:((: :!63:

Gears 1eposits D4s in MillionE
'!!6 '24
'!!6 '6'
'!!2 '63
'!! ':3
'!!! :
:((( 366
:((' :::
:((: :3

Gears 1eposits D4s in MillionE
'!!6 :6!'
'!!6 3!66
'!!2 63!
'!! 63!
'!!! 63!
:((( 6!6
:((' 6436
:((: 6!'

Categories No of Share Hol*ers Shares Hel* Percentage
1irectorsBC"$BSpouse 4 ''626 (.('
Pro&incial @o&ern ' 6'2'4:2 6'.62
)oreign fun*s 6( 3(6::263.(4
0n*i&i*uals 666! '432:63 '4.3:
0nsurance Companies 4 34633663.44
)inancial 0nstitutions : 6'2666.6
NB)0 '(3 '6642666 '6.4
Mo*ara#a + Mo*ara#a Management Co !:2! (.('
$thers : 6:!!:'6.:
T$T;5 6!' '((4'63:6 '((

Topics Page No.
Summari7e* Balance sheets 6
Comparati&e Balance sheets 6!
Summari7e* P5S ;ccounts 2'
Comparati&e P5S ;ccounts 2:
Tren* ;nalysis 4'
4atio ;nalysis 6
TH" B;N= $) PFN?;B
SFMM;40S"1 B;5;NC" SH""T
4s. 0n Million
)or the Gears :((: :((' :((( '!!!! '!!
;SS"T
CF44"NT ;SS"TS
Cash :'434'444:6'434'::(:'!66'2464!3
Balance ,ith other Banks 3'2(:2:43:626 46:(4 :(2'6'4'!644
;ccount 4ecei&a#le 242!336226'62:!''((('26((((4644!66
;*&ances 66:(!622'6:66'436646'6(644'''6((
T$T;5 CF44"NT ;SS"TS :((6434 '24:636 '(!!6:( ''!!4''2 ':42'432
5$N@ T"4M 0N/"STM"NT :!466'6!6!!422662!44!!(6'!66(63
)i-e* ;sset 32 :24(6! :4626 :3(646 :336('
Capital ,ork in progress 6(4 :'36 :64' 3324! 44(2
T$T;5 )0M"1 ;SS"TS 3!336 :24(6! :6':'6 :643!6 :24(
1eferre* Ta- 1e#t '6(2( '!:(22
$TH"4 ;SS"TS26!3( !4:!66 ''( !6'3': 666:'(
T$T;5 ;SS"TS :!63:6' :4(:2(3 :('6426 ':'(443 '!663
CF44"NT 50;B050T0"S
Notes Paya#le :6('44 '6:646 '3(4( 2:32 6433(!
;ccount Paya#le ':!642:6(!:6:3':3'! '(246624 '(((!64
;ccrue* 5ia#ilities 64:4( '(4 62346 :262
$ther 5ia#ilities 23'266 66663 6362(6 4:!!3( 4'6(26
T$T;5 CF44"NT 50;B050T0"S :336623322:64!26(6 ':''63:2 '(!!62!(
1eferre* 5ia#ilities ''2436 3((( 3(((
5ong Term 5ia#ilities :3262('2 '!(34232 '2(:4': 2(!'!334:234:6
T$T;5 50;B050T0"S :6::('3 ::4''!! '((6!'2 '63!'263 '(!(2:3
ST$C= H$51"4S "AF0TG
Share Capital '((4'64!2!66: 6'( 6'( 224436
4eser&es'3624!!':26'!''3:2:3'!2'(4! '(:(343
Fnappropriate* Profit '46: (6 442 ::6 '36
Stock Hol*er "9uity :363'(6:3!(2(6:'2!66':3'64'2!4!'6
Total 5ia#ilities + "9uity :63:43 :4(:2(3 :('6426 ':'4!(2 '!663
TH" B;N= $) PFN?;B
C$MP;4;T0/" B;5;NC" SH""T
4s. 0n Million
)or the Gears :((:3:((' :(('3:(((
;SS"TS 4s D0n MillionE Q;@" 4s D0n MillionE Q;@"
CCF44"NT ;SS"TS
Cash D'633!:2E D!3QE :!6466'2(Q
Balance ,ith other Banks :2326!2'3!Q D:66:!E D'.3QE
;ccount 4ecei&a#le 2(3666 '6Q 366'623Q
;*&ances 4!46: :(.6Q D32:'3E D!QE
T$T;5 CF44"NT ;SS"TS :666!:'Q 643::666'Q
5$N@ T"4M 0N/"STM"NT :3:42(436Q D'!642E D:!QE
)i-e* ;sset ''42:! 4!Q :644 ''Q
Capital ,ork in progress :!': 2Q D6(6E D'.':QE
T$T;5 )0M"1 ;SS"TS ''!222 43Q ::43 .:Q
1eferre* Ta- 1e#t D'6(2(E D!6QE D2((2E D3.6QE
$TH"4 ;SS"TSD'4(:6E D33QE 6'42 ''Q
T$T;5 ;SS"TS 423('4:3.2Q 46'6:::3Q
CF44"NT 50;B050T0"S
Notes Paya#le 26!! '6Q 3:(66 6Q
;ccount Paya#le D':'!2'6E D':QE :'!6!43:'Q
;ccrue* 5ia#ilities 46436 '63Q '(4 62Q
$ther 5ia#ilities 46'(3 ''Q '6(!42 36Q
T$T;5 CF44"NT 50;B050T0"S '(4'622!.6Q :3!26!::Q
1eferre* 5ia#ilities ''2436 3!'4Q
5ong Term 5ia#ilities 423::(''(Q :((63:642Q
T$T;5 50;B050T0"S 3('4(:'Q 44(6(':4Q
ST$C= H$51"4S "AF0TG
Share Capital :44!: 3Q ':22: '6.6Q
4eser&es:3( Q D6:(4(E D6QE
Fnappropriate* Profit '442 '(64Q D44:E D3:.6QE
Stock Hol*er "9uity :26(( '(6Q :'''42 ''.2Q
Total 5ia#ilities + "9uity 32(64('!Q 46'6:::3Q
TH" B;N= $) PFN?;B
C$MP;4;T0/" B;5;NC" SH""T
4s. 0n Million
)or the Gears :(((3'!!! '!!!3'!!
;SS"TS 4s D0n MillionE Q;@" 4s D0n MillionE Q;@"
CCF44"NT ;SS"TS
Cash D63643E D3'QE :2646: '6.2Q
Balance ,ith other Banks D'6'33'(E D:QE '(3(3( 6.:3Q
;ccount 4ecei&a#le ''6'((( :6Q D:!4!66E D6:QE
;*&ances D6!4E D.'6QE :(3!'46(Q
T$T;5 CF44"NT ;SS"TS D!!232E DQE D4223:(E D3.QE
5$N@ T"4M 0N/"STM"NT :26'2644Q D'6!!64E D:4QE
)i-e* ;sset '2!:! Q D:!66E D'.:QE
Capital ,ork in progress D3''(E D6!QE D''(6E D:4.6QE
T$T;5 )0M"1 ;SS"TS D'3'2!E D4.2QE D'4('3E D6QE
1eferre* Ta- 1e#t '!:(22 D'((QE
$TH"4 ;SS"TSD(:(4E D'4QE 4(6'(: 23Q
T$T;5 ;SS"TS '!26(3:'(Q D'626'!6E D.4QE
CF44"NT 50;B050T0"S
Notes Paya#le D24'!E D'36QE 3:!(6! 6(Q
;ccount Paya#le D'(433366E D'(4QE 236':6 2Q
;ccrue* 5ia#ilities D62346E D:4'QE 3!4 '4'Q
$ther 5ia#ilities '(6226 :6Q '464 3.6Q
T$T;5 CF44"NT 50;B050T0"S D'''36::E D'('QE '''!632 '(Q
1eferre* 5ia#ilities D3(((E D'((QE
5ong Term 5ia#ilities !!3642!:3:Q :'6(266Q
T$T;5 50;B050T0"S '6'6'64'(Q D'6!!2(E D!QE
ST$C= H$51"4S "AF0TG
Share Capital ( (Q 22444 '(Q
4eser&es366': 36Q D4!:!4E D6QE
Fnappropriate* Profit :: '63Q D!E 66Q
Stock Hol*er "9uity 3664(4 :(.4Q ::3! '.6Q
Total 5ia#ilities + "9uity '!2'66'(Q D'62(23'E .4Q
TH" B;N= $) PFN?;B
SFMM;40S"1 P4$)0T + 5$SS ;CC$FNT
4s. 0n Million
)or the Gears :((: :((' :((( '!!!! '!!
Ser&ice 4e&enue
Mark upB0nterest. 1iscount + 4eturne* "arne* :(6!666:'2:!66'!342!4::6(22(::6!6(
)ee Commission + Brokerage 6(3:( 6'!32 6'3!6 6(632 66:'
1i&i*en* 0ncome '!(6' '(!(4 '6'3(2 2':6 4623
$ther $perating 0ncome '(46' 6642 423(( :62:6 :6'6(
Total Ser&ice 4e&enue :4:36(2:3!3344::(42!6:4:6:!!:3!'('2
5essI Cost B4eturn on 1eposit !!6336 '''3'6' '(3344'6'('46'266443
@ross 0ncome '3!:644':6!2!(!!!((4 !':2!2 636'((
5essI $perating "-penses
;*ministrati&e "-penses !('(4' 32(66 62626 2::((! 6('36
Pro&ision against non3 performing a*&ances 26(26 3!:6 '43(6! ':3( D':36'6E
Pro&ision for *iminution in &alue of in&estment D:342:E ( ( ( :2:23
Ba* 1e#ts '624 :(( 33 ( 332
Total $perating "-penses !66:'! 2664' :'262 (3:3! 6(6363
$perating Profit 4324:6 33:4! '22:32 '(!66 ':!232
$ther 0ncome 43'64 :4( :'!62 '2:6! 266'
$ther Charges 4664 '46( 6!( :( '63
Profit Before Ta- 43'44 4:':26 3'!63! ':423! '366'6
5essI Ta- '422( '6(3( '6:::( !66(( ':6((
Profit ;fter Ta- :3!2! :36:46 '624'! ::3! ':3''6
TH" B;N= $) PFN?;B
C$MP;4;T0/" P4$)0T + 5$SS ;CC$FNT
4s. 0n Million
)or the Gears :((:3:((' :(('3:(((
Ser&ice 4e&enue 4s D0n MillionE Q;@" 4s D0n MillionE Q;@"
Mark upB0nterest. 1iscount + 4eturne* "arne* D'(34('E D4QE :3'6: '(Q
)ee Commission + Brokerage 33 '6Q D!46E D'2QE
1i&i*en* 0ncome 2!:42 '2(Q D6'6(3E D''(QE
$ther $perating 0ncome 46!34 '26Q ''342 43.3!Q
Total Ser&ice 4e&enue 3('63 'Q '64 Q
5essI Cost B4eturn on 1eposit D''6'6E D2QE :!(2 '.6Q
@ross 0ncome '3:64 :'Q :6(26 4'Q
5essI $perating "-penses
;*ministrati&e "-penses 63!6 '(.6Q '63( :6Q
Pro&ision against non3 performing a*&ances 362!( 3(Q D'(3223E D4QE
Pro&ision for *iminution in &alue of in&estment D:342:E D6QE ( (Q
Ba* 1e#ts '324 4(2.2Q '62 4!.6Q
Total $perating "-penses 262 '6.6Q 64224 ''Q
$perating Profit 64'26 4'.2Q :(6(': '6!Q
$ther 0ncome '4624 '!4Q 66'3 6Q
$ther Charges 3:(4 '!(Q 22( 46Q
Profit Before Ta- '(66! Q '('636 26Q
5essI Ta- 32'6( :!2Q ::'( '3Q
Profit ;fter Ta- 42234 3.2Q 2:6 64Q
TH" B;N= $) PFN?;B
C$MP;4;T0/" P4$)0T + 5$SS ;CC$FNT
4s. 0n Million
)or the Gears :(((3'!!! '!!!3'!!
Ser&ice 4e&enue 4s D0n MillionE Q;@" 4s D0n MillionE Q;@"
Mark upB0nterest. 1iscount + 4eturne* "arne* D3:6!26E D'6QE ''6: 'Q
)ee Commission + Brokerage 26 .2'Q :''6 3.6'Q
1i&i*en* 0ncome !((4! '!3Q :46:( 6:Q
$ther $perating 0ncome :'626 :.6Q D4:6E D'.6QE
Total Ser&ice 4e&enue D::(6(3E D!QE 34:: '.4Q
5essI Cost B4eturn on 1eposit D4:6('E D:4QE D:46:!E D'4QE
@ross 0ncome 6:(2 '3.6Q :226!2 43.2Q
5essI $perating "-penses
;*ministrati&e "-penses D43334E D2QE ':(64' :(Q
Pro&ision against non3 performing a*&ances 6'!:! 6(Q :(4!46 '66Q
Pro&ision for *iminution in &alue of in&estment ( D(QE D:2:23E D'((QE
Ba* 1e#ts 33 '(Q D332E D'((QE
Total $perating "-penses '6: 3.6Q :!2!26 6!Q
$perating Profit 6262! 6:Q D:('2!E D'6.6QE
$ther 0ncome 46! 6'Q !2( ':Q
$ther Charges D'3!E D3QE 4(6 :4Q
Profit Before Ta- '!4!(( '43Q D'(!26E DQE
5essI Ta- 662:( 6:6Q 4((( 62:Q
Profit ;fter Ta- ':!'( '(6Q D!4!26E D22QE
Comparati&e )inancial Statement
Comparati&e financial statement present financial information for the current perio* an* one or
more past perio*s. 0n comparati&e analysis the statements pre*ict a#out the mo&ements an* tren*s of the #usiness ,ith
respect to past years. ,hether there is increase in the #usiness acti&ities or *ecrease. 0t may also help to comments a#out
the future e-pectations of the ,ays in ,hich the financial an* operating performance ,ill go.
There are t,o type of comparati&e financial statement analysis.
Hori7ontal ;nalysis
Tren* Percentage ;nalysis
Hori7ontal ;nalysis
Comparison of t,o or more yearsC financial statement is calle* Hori7ontal ;nalysis. 0t sho,s the changes
#et,een years #oth in rupee an* percentages form. So in this ,ay it facilitates the analyst to pre*ict a#out the ,ays if the
#usiness in ,hich it is going. 0t emphasis the proportional relationship #et,een the reporting perio*s. rather than ,ith in
the reporting perio*.
0n this report 0 shall use this type of comparati&e financial statement analysis to analy7e the performance
of The Bank of Pun%a#.
Tren* Percentage ;nalysis
Tren* percentages state the se&eral yearsC financial *ata in terms of a #ase year. The #ase years e9uals to '((Q
,ith all other state* as some percentage of this #ase year. 0n this ,ay it pre*ict goo* an* easy ,ay information a#out the
#usiness acti&ities. By simple looking at these percentages one can see the ,ays in ,hich the #usiness in going on ,hether
the #usiness is making performance or not.
Comments on Comparati&e ;nalysis of :((:3:(('
The results that 0 ha&e percei&e* from the Comparati&e ;nalysis of Balance Sheet an* Profit + 5oss ;ccount of
:((:3('.
)rom Balance Sheet
8 The current assets increase* #y :'Q. this is mainly *ue to a higher increase in Balance ,ith other Banks i.e.
'3!Q#ut cash is re*uce* ,hich is not goo* for the Short term sol&ency of the #ank. ;ccount recei&a#le also increases as
compare* to last year #ut other assets *ecrease i.e. 33Q.
8 Total ;ssets are increase* #y :3.2Q.
8 )i-e* ;ssets are increase* #y 43Q.
8 The increase in Balance ,ith other #anks #y '3!Q is a goo* sign for the short3term sol&ency of the #ank.
8 The ;ccount recei&a#le is increase* #y '6Q in this perio*.
;s a ,hole total assets an* total lia#ilities plus o,nerCs e9uity is increase* #y '!Q ,hich correspon*s ,ith the increase in
ser&ice re&enue.
)rom Profit an* 5oss ;ccount
The ser&ice re&enue of the #ank is increase* #y 'Q than that of :(('. ,ith the *ecrease of 32Q in the cost return
on *eposits. So ser&ice *ecrease* less than that of return on *eposits.
This less *ecrease. ser&ice re&enue than that of return on *eposits results in an increase of :'Q of @ross profit.
The other income of the #ank also increase* in :((: then that of in :(('. These are increase* #y '!4Q.
;s the ser&ice re&enue increase*. the a*ministrati&e e-penses also increase* #y ''Q.
$&erall profit after ta- also increase* #y 3!Q in :((: then that of :(('.
Comments on Comparati&e ;nalysis of :(('3:(((
)rom Balance Sheet
8 The current assets increase* #y 6'Q. this is mainly *ue to a higher increase in cash i.e. '2(Q #ut #alance ,ith
other #ank is re*uce ,hich is not goo* for the Short term sol&ency of the #ank. ;ccount recei&a#le also increases as
compare* to last year.
8 Total ;ssets are increase* #y :3Q.
8 )i-e* ;ssets are increase* #y .:Q.
8 The *ecrease in Balance ,ith other #anks #y 3'.3Q is not goo* sign for the short3term sol&ency of the #ank.
8 The ;ccount recei&a#le is increase* #y 3Q in this perio*.
;s a ,hole total assets an* total lia#ilities plus o,nerCs e9uity is increase* #y :3Q ,hich correspon*s ,ith the increase in
ser&ice re&enue.
)rom Profit an* 5oss ;ccount
The ser&ice re&enue of the #ank is increase* #y Q than that of :(((
This less *ecrease. ser&ice re&enue than that of return on *eposits results in an increase of 4'Q of @ross profit.
The other income of the #ank also increase* in :((' then that of in :(((. These are increase* #y 6Q.
;s the ser&ice re&enue increase*. the a*ministrati&e e-penses also increase* #y :6Q.
$&erall profit after ta- also increase* #y 64Q :((' then that of :(((.
Comments on Comparati&e ;nalysis of :(((3'!!!
The results that 0 ha&e percei&e* from the Comparati&e ;nalysis of Balance Sheet an* Profit + 5oss ;ccount of
:(((3'!!!.
)rom Balance Sheet
8 The current assets *ecreases #y 3Q. this is mainly *ue to a higher *ecrease in Balance ,ith other Banks i.e.
3:Q an* cash is also re*uce* #y 33'Q. ,hich is not goo* for the Short3term sol&ency of the #ank. ;ccount recei&a#le
increase as compare* to last year #ut other assets *ecrease i.e. '4Q.
8 Total ;ssets are increase* #y '(Q.
8 )i-e* ;ssets are increase* #y Q.
8 The *ecrease in Balance ,ith other #anks #y 3:Q is not a goo* sign for the short3term sol&ency of the #ank.
8 The ;ccount recei&a#le is increase* #y :6Q in this perio*.
)rom Profit an* 5oss ;ccount
The ser&ice re&enue of the #ank is *ecrease* #y 3!Q than that of '!!!. ,ith the *ecrease of 3'6Q Mark up
interest on *eposits. So ser&ice *ecrease* less than that of Mark3up 0nterest.
This less *ecrease. ser&ice re&enue than that of mark3up on *eposits results in an increase of '4Q of @ross profit.
The other income of the #ank increase* highly in :((( then that of in '!!!. These are increase* #y 6'Q.
;s the ser&ice re&enue *ecrease*. the a*ministrati&e e-penses also *ecrease* #y 32Q.
$&erall profit after ta- also increase* #y '(6Q in :((( then that of '!!!.
Comments on Comparati&e ;nalysis of '!!!3!
The results that 0 ha&e percei&e* from the Comparati&e ;nalysis of Balance Sheet an* Profit + 5oss ;ccount of
'!!!3!.
)rom Balance Sheet
8 The current assets *ecreases #y 33.Q. this is mainly *ue to a higher *ecrease in ;ccount 4ecei&a#le #ut
increase* in Balance ,ith other Banks i.e. 6Q an* cash is also increase* #y '6.2Q ,hich is goo* for the Short term
sol&ency of the #ank.
8 Total ;ssets are *ecrease* #y 3.4Q.
8 )i-e* ;ssets are also *ecrease* #y 3'.:Q.
8 The ;ccount recei&a#les are *ecrease* #y 36:Q in this perio*.
)rom Profit an* 5oss ;ccount
The ser&ice re&enue of the #ank is increase* #y 'Q than that of '!!. ,ith the *ecrease of 3'4Q in the cost return
on *eposits. So ser&ice *ecrease* less than that of return on *eposits.
This less *ecrease. ser&ice re&enue than that of return on *eposits results in an increase of 43.2Q of @ross profit.
The other income of the #ank also increase* in '!!! then that of in '!!. These are increase* #y ':Q.
;s the ser&ice re&enue increase*. the a*ministrati&e e-penses also increase* #y :(Q.
$&erall profit after ta- *ecrease* #y 322Q in '!!! then that of '!!.
TH" B;N= $) PFN?;B
T4"N1 P"4C"NT;@"S
)or the Gears :((:B'!! :(('B'!! :(((B'!! '!!!B'!!
;SS"TS
CCF44"NT ;SS"TS
Cash '6'Q :64Q 4Q ''6Q
Balance ,ith other Banks '6'Q :'Q :3Q '(6Q
;ccount 4ecei&a#le '6'Q '4'Q 6:Q 32Q
;*&ances '6(Q '4(Q '4!Q '6(Q
T$T;5 CF44"NT ;SS"TS '6'Q '3!Q Q !6Q
5$N@ T"4M 0N/"STM"NT ':6Q !(Q ''!Q 26Q
)i-e* ;sset '66Q ''2Q '(6Q !Q
Capital ,ork in progress ''Q (4Q (6Q 26Q
T$T;5 )0M"1 ;SS"TS '4'Q !Q !(Q !4Q
1eferre* Ta- 1e#t ((Q !6Q '((Q ((Q
$TH"4 ;SS"TS'36Q '6!Q '6Q '23Q
T$T;5 ;SS"TS '4Q ':4Q '('Q !'Q
CF44"NT 50;B050T0"S
Notes Paya#le 46Q 3(Q :4Q '6(Q
;ccounts Paya#le':Q :6Q (3Q '(2Q
;ccrue* 5ia#ilities :3(Q 62Q ((Q :4'Q
$ther 5ia#ilities '26Q '66Q ':!Q '(3Q
T$T;5 CF44"NT 50;B050T0"S :'Q 3(Q (Q ''(Q
1eferre* 5ia#ilities 3!'4Q ((Q ((Q '((Q
5ong Term 5ia#ilities 666Q 446Q 3!Q '66Q
T$T;5 50;B050T0"S '44Q '3Q !!Q !(Q
ST$C= H$51"4S "AF0TG
Share Capital ':!Q ':6Q ''(Q ''(Q
4eser&es'33Q ':6Q '3(Q !6Q
Fnappropriate* Profit '(62Q 3Q 3:Q '66Q
Stock Hol*er "9uity '3'Q '33Q ':'Q '('Q
Total 5ia#ilities + "9uity '43Q ':4Q '('Q !'Q
TH" B;N= $) PFN?;B
T4"N1 P"4C"NT;@"S
)or the Gears :((:B'!! :(('B'!! :(((B'!! '!!!B'!!
Ser&ice 4e&enue
Mark upB0nterest. 1iscount + 4eturne* "arne* !'Q !6Q 6Q '((Q
)ee Commission + Brokerage '(3Q Q '(4Q '(3Q
1i&i*en* 0ncome 4(4Q :34Q 346Q '6:Q
$ther $perating 0ncome 3!!Q ::4Q '(Q !Q
Total Ser&ice 4e&enue '('Q '((Q !:Q '('Q
5essI Cost B4eturn on 1eposit 66Q 63Q 6'Q 6Q
@ross 0ncome :'!Q '!Q '62Q '43Q
5essI $perating "-penses
;*ministrati&e "-penses '4!Q '3!Q '':Q ':(Q
Pro&ision against non3 performing a*&ances 6'Q 3'Q ''6Q 66Q
Pro&ision for *iminution in &alue of in&estment D6QE (Q (Q (Q
Ba* 1e#ts 462Q 6!Q !Q (Q
Total $perating "-penses '!Q '23Q '6:Q '6!Q
$perating Profit 332Q :!6Q '36Q 4Q
$ther 0ncome 62(Q 326Q :!(Q ::Q
$ther Charges :22Q 6Q 4(Q ':4Q
Profit Before Ta- 3'Q 3'(Q :36Q !'Q
5essI Ta- '':Q '4(Q ':!2Q 22:Q
Profit ;fter Ta- :3(Q '!'Q ':2Q ::Q
@raphically Presentation of tren* Percentages
This ta#le an* graph sho,s the tren* of Total current ;ssets. Total )i-e* ;ssets. an* Total ;ssets *uring the years
'!!3(:
No of Gears :((: :((' :((( '!!! '!!
Total Current ;ssets '6'Q '3!Q Q !6Q '((Q
Total )i-e* ;ssets '4'Q !Q !(Q !4Q '((Q
Total ;ssets '4Q ':4Q '('Q !'Q '((Q

This ta#le an* graph sho,s the tren* of @ross 0ncome. profit #efore ta-. an* Net income.
No of Gears :((: :((' :((( '!!! '!!
@ross 0ncome :'!Q '!Q '62Q '43Q '((Q
Profit #efore Ta- 3'Q 3'(Q :36Q !'Q '((Q
Net 0ncome :3(Q '!'Q ':2Q ::Q '((Q

This ta#le an* graph sho,s the tren* of current 5ia#ilities. 1eferre* 5ia#ilities an* 5ong Term 5ia#ilities *uring
the perio* '!!3(:
No of Gears :((: :((' :((( '!!! '!!
Current 5ia#ilities :'Q 3(Q (Q ''(Q '((Q
5ong Term 5ia#ilities 666Q 446Q 3!Q '66Q '((Q
Total 5ia#ilities '44Q '3Q !!Q !(Q '((Q

4;T0$ ;N;5GS0S
The relationship of one item to another e-presse* in simple mathematical form is kno,n as a ratio. ; single ratio
in itself is meaningless #ecause it *oes not furnish a complete picture. ; ratio #ecomes meaning full ,hen compare* ,ith
some stan*ar*. So ,e ha&e taken ratios an* percentage of the B$P #ase* in its recor* of the past financial an* operating
performance. $n the follo,ing pages. 0 make the analysis of the financial statements of B$P #y using relate* items for the
last fi&e years.
Profita#ility &s. 0n&estment
4eturn on ;ssets Net profit after ta-es B Total assets
4eturn on 1eposits Net profit after ta-es B 1eposits
4eturn on "9uity Net profit after ta-es B "9uity
No of Gears :((: :((' :((( '!!! '!!
4eturn on ;ssets .!6Q . !6Q .2(Q . '6Q . 6'Q
4eturn on 1eposits '.'!Q '.:4Q .!:Q . 3!Q :.Q
4eturn on "9uity ':.('Q !.Q 2.:Q '.64Q 6.2Q
4emarks.
The return on assets sho,s a increasing tren*. ,hich is goo* sign for the B$P. 4eturn on *eposits is also not
sta#leJ in starting years it increases an* then *ecreases an* kno,s again increase. This is *ue to an increase in *eposits
an* less increase in profit. The 4$" ratio of fi&e years of B$P in*icates that the profita#ility of the #ank ,ith e9uity is
increasing *ay #y *ay. This looks to #e &ery positi&e sign.
Profita#ility 4atios.
@ross Profit Margin @ross profit B 0ncome
$perating Profit Margin $perating profit B 0ncome
Net Profit Margin Net profit B 0ncome
No of Gears :((: :((' :((( '!!! '!!
@ross Profit Margin 62Q 6:Q 46Q 32Q :2Q
$perating Profit Margin 'Q '6Q Q 6Q 6Q
Net Profit Margin ''Q !Q 2Q 'Q 6Q
4emarks.
The net profit margin of fi&e years in*icates that the income of the B$P after paying its non3pro*ucti&e e-penses
is increasing year #y year. ,hich is a &ery goo* sign for the #ank. ;s 0 see the operating profit of the #ank sho,s a
increasing tren* in ratio. This sho,s that the earning capacity of the #ank is increasing year #y year.
"arning Per Share
"arning Per Share Profit after Ta- B No of Shares
No of Gears :((: :((' :((( '!!! '!!
"arning Per Share :.3 :.4' '.6 .33 '.6!
Comments
"arning of B$P sho,s the increasing tren*. This sho,s that the earning capacity of a single share is increasing
an* sharehol*ers are earning increase e&ery year. This is &ery goo* sign for B$P. This ratio shoul* #e as high as possi#le
#ecause it has a great importance for an in&estor to in&est in the Bank of Pun%a#.
4egulatory 4atiosI
;*&ances to 1eposits 4atio ;*&ances B 1eposits
Cash to *eposits 4atio Cash B 1eposits
No of Gears :((: :((' :((( '!!! '!!
;*&ances to 1eposits 4atio :Q 3(Q 36Q 36Q 33Q
Cash to *eposits 4atio ':Q :3Q !Q '3Q 4:Q
4emarks.
;*&ances to *eposits ratio of The Bank of Pun%a# sho,s that the portion of loan in total *eposit of the #ank is not
sta#le. 'st three year from '!! to :((' increase then *ecrease. 0t means that the cre*it Da*&ancesE circulation of the #ank
has fallen from 36Q to :Q *uring the last fi&e years. ,hich is a not goo* sign. ;n* the cash to *eposits ratio is also
*ecrease from 4:Q to ':Q.
Capital a*e9uacy 4atiosI
"9uity to ;sset 4atio Total "9uity B Total ;ssets
"9uity to 1eposit 4atio Total "9uity B 1eposits
No of Gears :((: :((' :((( '!!! '!!
"9uity to ;sset 4atio Q '(Q ''Q '(Q !Q
"9uity to 1eposit 4atio '(Q '3Q '3Q ':Q 3Q
4emarks.
This ratios is sho,ing increasing tren*. in :((: it *ecrease*. This means that *eposit of the #anks are *ecrease*
in :((: an* assets are also *ecrease* in :((:. ,hich is not goo* for the Bank of Pun%a#.
"fficiency 4atiosI
1eposits to total lia#ilities 4atio 1epositsBTotal 5ia#ilities
0n&estment to Total ;ssets 4atio 0n&estments B Total ;ssets
No of Gears :((: :((' :((( '!!! '!!
1eposits to total lia#ilities 4atio !'Q 6Q !6Q !:Q !4Q
0n&estment to Total ;ssets 4atio :Q :4Q :2Q :2Q 34Q
Topics Page No.
Strengths !:
>eaknesses !4
$pportunities !6
Threats !2
ST4"N@THS
The ma%or shares of B$P is o,ne* #y the @o&t. of the Pun%a#. so it can *e&elop a goo* image + trust among it
customers.
Sta#ility of Bank is strength of any #ank. The Bank of Pun%a# has sta#le gro,th since its esta#lishment.
The Bank pro&i*es the loan facility on soun* #asis that is &ery crucial for any #ank to reco&er the loan. The Bank
of Pun%a# has conser&ati&e policy for a*&ances. So there are &ery less #a* *e#ts.
Personal selling has key role in #anking ser&ice. The officers of the Bank of Pun%a# go to the potential customers
to *e&elop the #usiness. By the relationship ,ith customers. they achie&e the *eposit targets.
The promotion criteria of the #ank are on the #asis of the efficiency an* passing the *iploma e-amination of
Pakistan 0nstitute of Bankers.
"ntry in gains #ook if ,orl* recor*. rapi* gro,th in e-pansion in short span of time. :43 #ranches in Pakistan.
0t is the policy of the management that re9uirements are ma*e accor*ing to the principles of merit. The #ank to
train them in gi&es the staff #anking. The past percentage of the can*i*ates of Bank of Pun%a# is the highest among the
entire commercial e&ery year.
People ha&e trust in the Bank of Pun%a# #ecause go&t. of Pun%a# 6:Q shares of the #ank.
There is no union in the Bank of Pun%a#.
>orking en&ironment is goo*. $fficers an* managers ,ork together as a team. They are &ery cooperati&e ,ith
each other.
The #ank has &ery goo* #ranch net,ork in Pun%a# an* no, after sche*uling the #ank is opening its more
#ranches in other pro&inces.
Higher management is e-perience*.
The management style of the management is fle-i#le.
Profit rate is high as comparati&e to other #anks.
>";=N"SS"S
The Bank of Pun%a# is centrali7e* organi7ation. The authority is not gi&en to the #ranch le&el. Managers ha&e to
take permission from the 4egional office or Hea* office for cre*it. Manager ha* to get permission if they ha&e to gi&en
more rate of profit to the customers. So the customers ha&e to ,ait for *ays. ,hich may cause the change of customers.
Managers cannot negotiate ,ith customers ,ithout the permission of hea* office.
The Bank of Pun%a# has less mo*ern technology. $nly fe, #ranches are computeri7e*. 1ue to lack of mo*ern
technology. the #ankCs ser&ices are lo, an* foreign #anks ha&e large market share. 0n this era mo*ern technology is &ery
necessary for competitions.
Salaries of the officers are less as compare* to other pri&ate #anks.
The Bank of Pun%a# has &ery less promotional acti&ities. Their a*&ertising campaign is &ery lo,. They only use
personal selling.
The Bank of Pun%a# has &ery less staff in the #ranches of South Pun%a# as compare* to Fpper Pun%a#. This creates
the pro#lem employees ha&e to spent most of their time in the #ank to complete e&en their *aily routine ,ork. They ha&e
to sit till 2I(( to I(( PM #efore going #ack to their homes. )or this reason their normal life is *istur#ing ,hich create the
irritation in the #eha&ior of employees.
The #ankCs e-penses are increasing at &ery high rate.
The Bank of Pun%a# has less interest in foreign e-changes. ;n* B$P has less num#er of e-pert officers in the
foreign e-change #usiness.
Mostly small #ranches are going in loss.
The Bank of Pun%a# has only si- regional office in ,hole Pakistan. 0t is &ery *ifficult to control all #ranches in
one region.
The Bank of Pun%a# is *e&iating from the #asic #anking principles. #ecause the #asic function of #ank is to accept
the *eposit an* a*&ance loans. But analysis of financial statement of B$P sho,s that a*&ances are less as compare* to
in&estment.
B$P is not taking keen interest in the marketing of tra&eler che9ue than others #ank. B$P is loosing its share *ue
to the less interest.
$PP$4TFN0T0"S
8 ;lthough commercial #anks ha&e launche* many pro*ucts #ut a gap e-ist #et,een the customerCs ,ant an* ,hat
the #anks are pro&i*ing. This is an opportunity for the Bank of Pun%a# to mo&e in an* fill the gap #et,een the i*eal #ank
an* the current ser&ice offerings #y aggressi&e a*&ertising. consumer frien*ly attitu*e pro*ucts an* ser&ice for attracting
customers.
8 The Bank has opportunity to e-pan* the #ranch net,ork all o&er the country. an* it ,oul* #e a#le to *e&elop
#usiness an* can start many other schemes for in&estment.
8 The Bank has opportunity to use latest technology for pro&i*ing goo* ser&ices to customers.
8 There is an opportunity for more #usinesses if the B$P opens its #ranches in foreign countries.
8 There is an opportunity for more #usinesses if the B$P offere* cre*it car*s.
8 1ifferent multinational are esta#lishing their #usinesses in Pakistan. So there is a lot of potential for future
#usinesses.
TH4";TS
8 The salaries of the officers of the Bank of Pun%a# are less as compare* to other pri&ate #anks. 0t may cause
transfer of the e-perts from the Bank of Pun%a# to other #anks.
8 "-pansion of ne,ly esta#lishment #anks like Picic Bank. Fnion Bank. ;l3)alah Bank. ;skari Commercial Bank
etc. an* their #etter performance may cause loss of the marker share of the B$P. ;ccor*ing to the >orl* Bank report. the
Pakistan has #ecome an Ko&er #anke*L economy. >ith the cutthroat competition for *eposits in the in*ustry. the #attle is
on for the market share. The concept of :4 hours #anking. Telephone an* $n35ine Banking. ;utomatic Teller Machine
D;TME. an* cre*it car* are a *irect result of the intense competition. But the B$P is far #ehin* the a#o&e 3mentione*
ser&ices an* ,ill not pro&i*e #etter ser&ices as compare* to other #anksJ it ,ill lose its market share.
8 The Bank of Pun%a# is also force* to gi&e loans on potential #asis. 1ue to this the reco&ery of such loans may
#ecome &ery *ifficult.
8 Promotional acti&ities of the B$P are nor sufficient. 1ue to this it may lose market share.
0n the light of the =no,le*ge o#taine* *uring internship an* stu*ying the organi7ation. the follo,ing
recommen*ations may pro&e to #e successful to the #ank.
8 0n or*er to capture a consi*era#le share in the #anking sector of the country. the prime o#%ecti&e shoul* #e
a,areness in the general pu#lic. )or this it shoul* launch a ,ell3planne* a*&ertising campaign in the general pu#lic.
8 Physical facilities in a #ank also play their role in enhancing its gra*e an* soun* image. The #ank shoul* keep
these facilities like furniture. parking facilities for the customer.
8 Salaries of the officers must #e compati#le to other pri&ate #anks so that the B$P can attract professionals.
intelligent persons.
8 The Bank of Pun%a# shoul* minimi7e its e-penses.
8 Special a,ar*s shoul* #e gi&en to the har*,orking employees ,ho performe* e-tra3or*inary in the #ank.
8 The #ank shoul* come up ,ith ne, an* inno&ati&e pro*ucts. 0t ,oul* #e a*&isa#le to make these pro*ucts ,hile
keeping in min* the gap #et,een ,hat people ,ant an* ,hat their #anks are pro&i*ing them.
8 The Bank of Pun%a# shoul* concentrate more on a*&ances than on in&estments
8 The #ank shoul* come up ,ith such pro*ucts or ser&ices in ,hich the customers ,oul* not ha&e to come to the
#ank at any stage i.e. Telephone Banking etc.
8 The Bank of Pun%a# shoul* use the latest technology #ecause the #ank ,hich can pro&i*e spee*y. accurate an*
stan*ar* ser&ices in the *eli&ery of pro*ucts. loans etc. to the customers ,ill #e successful e.g. computeri7ation. fa-
installation.
8 The authority shoul* #e *elegate* to the manager le&el.
8 M0S shoul* #e impro&e* #y connecting all regional offices an* #ranches to the hea* office through a net,ork for
timely *eli&ery of information.
8 Management of Bank of Pun%a# shoul* try to a&oi* the political influences an* shoul* gi&e loans on merit.
8 The #ank shoul* make a plan to gear up its reco&ery function on ,ar fooling an* recogni7e the reco&ery function.
8 The Bank of Pun%a# shoul* gi&e some e-tra cre*it to concern to professional 9ualifications such as MB;D0TECs.
M.B.;Cs. C.;Cs ;.C.M.;Cs at the time of recruitment an* selection.
8 0nter&ie, shoul* #e con*ucte* ,hile recruiting personnel. to consi*er the personality characters. communications
skills an* socia#ility.
8 The #ank shoul* a*opt a policy to accommo*ate an* facilitate the research scholars ,ho ,ant to stu*y the
#anking affairs. The uni&ersities an* other institutions can help to launch the stu*ies regar*ing #anking #usiness.
8 ;ll possi#le efforts shoul* #e ma*e to protect the #ank from the interruption of Pro&incial go&ernment.
8 There shoul* #e an association of employees to con&ey the &oice of the employees to the a*ministration.
The Bank of Pun%a# is contri#uting a lot to,ar*s the in*ustrial *e&elopment an* capital formation in the country.
;s it is e-hi#it from the *ata regar*ing the #ankCs financial performance as sho,s in the financial performance as sho,s
in the financial analysis. that #ank is sharing ma%or #anking #usiness of the country. )urther more the policies an*
schemes as are intro*uce* an* carrie* on #y the #ank are of great source of help in its tra*ing an* non3tra*ing gro,th.
They facilitate tra*e #oth insi*e an* outsi*e the country. The Bank if Pun%a# has en*ea&ore* to remain in the
forefront of mo*ern financial institutions an* has consistently sho,s tremen*ous gro,th in all area of its acti&ity. Ho,e&er
after sche*uling. *ue to its emphasis on consoli*ation an* controlle* len*ing. the gro,th of profit has some,hat *ecline*.
But the #anCs performances are in line ,ith its set goals.
The policies of the #ank are uniform an* going &ery smoothly. The employees are gi&en all the possi#le facilities
an* generous compensation. 0n return employees are stresse* for their #est efficiency. Merit policy pre&ails in all the
acti&ities of the #ank. ;*ministration has stu*ie* the a*ministration of all other #anks. an* all their pro#lems an*
*ra,#acks are planne* to #e a&oi*e*. Therefore. the policies of the management are progressi&e an* proper.
The progressi&e approach an* tren* to,ar*s progress an* prosperity reflects that #ank ,ill touch the 7enith of
*e&elopment an* progress. The *e*icate*. enthusiastic an* moti&ate* employees can #ring that time e&en earlier.