INTERNSHIP REPORT

ON

ZARAI TARAQIATI BANK LIMITED

M. FAISAL IQBAL BHATTI

BBA (Hons) MARKETING ROLL NO. 5608 2010-2014

DEPARTMENT OF BUSINESS ADMINISTRATION

UNIVERSITY OF EDUCATION LAHORE, MULTAN CAMPUS

DEDICATION
To my parents and great teachers.

ACKNOWLEDGMENTS

All praises belong to Almighty Allah Who the supreme authority Knows the ultimate relation underlying all sorts of phenomenon going on in this universe & whose blessing & exaltation flourished my thought & thrived our ambitions to have the cherished fruit of my modest efforts my humblest thanks to the Holy Prophet Hazard Muhammad (PBUH) who is forever a torch of guidance & knowledge for humanity as a whole.

I deem it my utmost pleasure to avail this opportunity to express gratitude & deep sense of obligation to my revered teachers for their valuable and dexterous guidance, untiring help, compassionate attitude, kind behavior, moral support and enlightened supervision during this whole project.

Finally, I would like to extend hurtful thanks to my adoring parents and friends for their day and night prayers sacrifices and encouragement, moral and financial support throughout the course of my study.

May all of them live long and enjoy a happy life.

EXECUTIVE SUMMARY
The Zarai Traqiati Bank Limited (ZTBL) is single largest supplier of institutional agriculture credit in Pakistan. ZTBL is corporate body enjoying semi-autonomy in the conduct of its operations. The Federal Government together with State Bank of Pakistan exercise policy control over the bank. Both the availability of financial resources and quantum of lending programs of the bank are subject to their approval. The funds for lending are provided by State Bank of Pakistan at 2% below bank rate. The foreign loan obtained from IDA, Swedish International Development Authority, and Asian Development Bank. Lending is done for uptake of modern technology, tapping of underground water resources, application of chemical inputs and miscellaneous activities I have done my internship at ZTBL in its Credit Operations Department under the supervision of Mr. Musharaf Waseem, Deputy Manager. My internship goals are to learn about different functions that are performed in COD. I have learned form internship how to carry out work, handle my responsibilities. And learned how to interact with others and what kind of organizational behaviors are acceptable and non acceptable. I learned time management and work accomplishment effectively and efficiently. I observed there friendly environment, strong relationship among pears and computerized system which enabled organization to avoid problems related to manual system. Later on the Agricultural Development Bank of Pakistan was also established in September 1957, under the Agricultural Development Bank Act. The Bank is to provide credit in cash or in kind, warehousing and storage facilities to agriculturists, cooperative societies and other bodies, of which the majority of members are agriculturists. As the functions of the agricultural Development Bank were similar and since both were working with capital provided by the Government, they were merged into an organization known as Agricultural Development Bank of Pakistan on February 18, 1961. They Agricultural Development Bank of Pakistan is a banking company for the purpose of the banking companies Ordinance and the State Bank of Pakistan Act. On December 14, 2002, the Federal Government has converted the Agricultural Development Bank of Pakistan (ADBP) into Zarai Taraqiati Bank Ltd (ZTBL) and the new venture has started its operation with immediate effect. The new corporate structure redefines the banks statue as a public limited company with an independent Board of Directors promulgated under the Presidential Ordinance, which aims at ensuring good governance, autonomy, delivering high quality, viable and timely financial services to a greater number clientele in the agricultural and rural segment of the country with adequate returns to the stakeholder. Zarai Taraqiati Bank (ZTBL) has been registered under the Companies Ordinance 1984 and by virtue of Finance order, all assets, liabilities proceedings undertaking of ADBP stands

transferred to and vested in Zari Taraqiati Bank with effect from December 14, 2002. After conversion of ADBP to ZTBL Mr. Istaqbal Mehdi was the 1st president and CEO of ZTBL.

TABLE OF CONTENTS
Contents Chapter No.2 INTRODUCTION TO BANKING
Meaning & Origin of Banking Evolution of Banking The Merchants The Goldsmiths The Money Lenders Evaluation of Banking in Pakistan Classification of Banking in Pakistan Role of ZTBL in economic development of Pakistan

Page No 07
07 07 07 07 08 08 09 11

Chapter No.3 INTRODUCTION TO ZARAI RARAQIATI BANK LIMITED 13

Zarai Taraqiati Bank Limited History of Zarai Taraqiati Bank Limited Corporate Vision Corporate Mission Restrctring Plan of Zarai Taraqiati Bank Limited Board of Directors Multan Zonal Office Setup Committees & Organization Structure of ZTBL Board Committees Audit Committee Human Resource Management Committee Risk Management Committee Information Technology Committee(IT) Management of Committees Assets & Liabilites Management Committee Exectuive Coordination Committee Organizational Structure of ZTBL Ranking of Staff Members 13 13 15 15 15 16 16 18 18 18 19 19 19 19 19 19 20

Chapter No.4 PRODUCTS & SERVICES OF ZTBL

Introduction Schemes of ZTBL

21
21 21

 Saraib Pakistan Scheme Supervised Agri Credit Scheme White Revolution Scheme Micro Credit Scheme Zarkhaiz Scheme (One Window Operation) Sada Bahar Scheme Tea Financing Scheme Loans of ZTBL Production Loans Recovery Procedure of Loans Recovery Schedule Insurance of Notice

21 22 22 22 23 23 24 24 24 25 25 25

Chapter No.5 FINANCE & ACCOUNTS DIVISION

Introduction of the Finance & Accounts Division Functions of the Finance & Accounts Division Classification of Finance & Accounts Division Central Accounts Department (CAD) Head of Accounts Department (HOAD) Regulatory Reporting Department (RRD) Budget and Fund Reconcilation Department (BFRD) Hierarchy of Finance & Accounts Department

26
26 26 27 27 28 28 28 29

Chapter No.6 CENTRAL ACCOUNTS DEPARTMENT (CAD)

Introduction of CAD Objectives of CAD Functions of CAD Units of CAD Policy Unit Accounts Unit Tax Unit Fixed Asset Unit Pre-Payment Verification Unit

30
30 30 30 31 31 32 32 33 33

Chapter No.7 HEAD OFFICE ACCOUNTS DEPARTMENT (HOAD) 34

 Introduction of Head Office Accounts Department (HOAD) Units of Head Office Accounts Department (HOAD) Payroll Unit Funds Unit Payment Unit Inter Branch Tanscation Unit (IBTU)

34 34 34 34 35 35

Chapter No.8 REGULATORY REPORTING DEPARTMENT (RRD) 40

Introduction of RRD Objectives of RRD Functions of RRD 40 40 40

Chapter No.9 BUDGET & FUND RECONCILATION DEPARTMENT (BFRD) 41

Introduction of BFRD Functions of BFRD 41 42

Chapter No.10 VARIOUS ANALYSES

Introduction of Various Analysis SWOT Analysis Ratio Analysis Human Resource Analysis Market Analysis

44
44 44 48 51 53

Chapter No.11 FINDINGS & RECOMMENDATIONS

Findings Recommendations Personal Experience Conclusion

55
55 56 57 58