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Internship in
Zarai Taraqiati Bank Ltd.(ZTBL)
Wazirabad Branch
Report Written
Six week internship training
15th August 2013 to 22nd September 2013

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14 August 2013
Independence Day Photos first Prize in Islamabad Beauty Building

Head Office Zero Point Near Shahraiy Pakistan Monoment Islamabad

Contents
5.Acknowledgment
6.Dedication
7.Executive summary
8.Cooperate vision and mission statement
10.Objects and function
11.Brief of the ZTBL
12.Corporate information
13.Area of operation

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13..Type of loan able item under general credit loan

14.Nature of the organization
15.Business volume reward honors and success stories act last five years
19-24Product and services lines
25.Operational procedure
25.Entertainment of loan application
27.Types of loans
30.Jurisdiction entertainment of loan application
36.Contribution of organization toward economic development
40.Organization structure
41.Comments on the organization structure
42.Islamization of banking system
43.Brief of the internees work
46.Summary of the learning
47.Conclusion of the report
48.Swot analysis of the organization
49.Recomendation of problems that are found in the swot analysis

Acknowledgement
Every praise to Allah Almighty the most merciful and beneficial , who knows about
whatever is there in universe ,hidden or evident who enables me to get such valuable
knowledge which definitely helped me in my professional life.
I would like to thanks MR, TANVEER AHMED (MOBILE CREDIT OFFICER) who trust
my abilities to use my skills. Thanks to all ZTBL WAZIRABAD staff. They gave me their

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precious time and I learn a lot from them. Thanks to all my family and friends who
helped me.

Dedication
I would like to dedicate my entire work to my parents, banker MCO and teachers
whose prayers and guidance helped me to complete my task.

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Executive Summary
The ZTBL is single largest supplier of institutional agriculture credit in Pakistan.
ZTBL is corporate body enjoying semi_ autonomy in the conduct of its operation. The
Federal government and state bank of Pakistan together exercise policy control over the
bank , both the availability of financial resources and quantum of lending program of
bank are subject to their approval .The funds for lending are provided by the state bank
of Pakistan at 2% below bank rate.

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The foreign loan obtained from IDA, Swedish international development authority
and Asian development bank. Lending is done for pursing of modern technology,
tapping of underground water resources and application of chemical inputs.
I learned from internship how to carry out work , handle the responsibilities ,also
learn how to interact with people and what kind of organization behaviors are
acceptable or not .I learned time management and how to accomplish the work
effectively and efficiently.
I observed there friendly environment strong relationship among employees and
customized system which enable organization to avoid problems related to manual
system. My goals to learn about different function that are performed there completed.

Corporate Vision
Dedicated to serve the needs of the farming community, by delivering financial products
and technical services on a competitive and sustainable basis, in a convenient, efficient
and professional manner, leading to success of bank and the farmers.

Corporate Mission

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To play effective role in the promotion economic growth, through reliable access to
sustainable financing, special lending programs, technical assistance and other
products and services, and promote career development opportunities for increasing
professionalism and technical proficiencies of employees.

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1.OBJECTS AND FUNCTIONS

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1. The prime object of Zarai Taraqiati Bank Ltd. Under the companies ordinance 1984 is
to provide sustainable rural finance and services to small farmers and low income
borrowers so that they can mitigate poverty.
2. The guiding principal of the bank to provide finance and credit facilities to small
borrowers and low income households and especially the women. This finance should
be on pure commercial basis and no concessions.
3.The credit facilities in rural shall be provided with or without collateral, in cash that are
market based mark-up rates that ensure the operational and financial sustainability of
the bank.
4. Small farmers who have 25 acres of integrated land or un-irrigated land must be
provided 75 % funds by the bank and 25% for the bigger land owners reserved by the
bank.
5. Low income households include land _less poors, tillers and small land owners
having land not exceeding two acres.

2.Brief of the ZTBL

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Zaria taraqiati bank limited erstwhile Agriculture Development Bank Of

Pakistan is the premier financial institution geared towards the development of
agriculture sector through provision of financial services and technical facilities. The aim
of restructuring ADBP is being carried out with the aim of uplift the agriculture and rural
sector by raising farm productivity and increasing income generating capacity of the
farming community ZTBL was incorporated as public limited company on 14 th December
2002 through repeal of 1961.
The new corporate structure redefines banks status as public limited company
registered under companies Ordinance 1984 with an independent board of directors
which aims of ensuring good governance and delivering high quality.
For all practical purpose bank is an backbone for government for implementing
overall agriculture policy for credit purposes. The design of credit is linked so for as
possible with periodic priorities and targets as laid in annual development plans.
Total assets of the bank stand at 123 billion with authorized capital of Rs 25
billion as of 31.12.2011, with a nationwide working strength comprises 5789 employees.
The share ZTBL in total national institutional agriculture credit is 23% as on date
30.6.2012.

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3.Area of Operation
The area of Zarai Taraqiati Bank Ltd. are extended to whole Pakistan and also
the business of bank transacted outside the Pakistan. The operations of the bank also
cover the Tribal areas Federally Administrated Northern Areas and Azad Jammu and
Kashmir. Extension of functions of ZTBL to Azad Jammu and Kashmir has been made
vide the ZTBL of Pakistan Act, 2003 published in gazette of 29January 2004.

4.Types of Loan able items under general credit

1.Production or Seasonable Loans.
2.Development Loans.
3.Items of Cottage Industry admissible under Micro Credit Scheme.
4. Limit of Loan under General Credit.

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5.Nature of the organization

As the need of the hour, same as every other countries our country also feel the
need of such institution which only work for agriculture sector thats why the nature of
such institution is based on Zarai Taraqiati Bank Ltd. ,whose purpose is only to work for
the prosperous of agriculture sector. This bank provides loans to farmers on asan qarza
scheme so that they fulfill their needs. Early on farmers used the old methods for
cultivation like ploughing their fields with the help of bulls, thats why their production of
goods is low and hardly to fulfill our country requirements. later on

with the

advancement in technology and latest methods of cultivation , it change the whole

method of cultivation and thus Government of Pakistan thought that such latest
technology should be used ,and for that purpose Zarai Bank should be established in all
over the country, which provide loans to farmers on asan qarza scheme and on lower
interest rate for buying products such as machinery include tractor, harvester, treasure
and seeds , fertilizers , and chemicals for killing insects etc.
Due to such facilities, the living style of the farmers is totally changed, because
they could easily buy luxuries for their family and themselves, and their lives goes on
the path of prosperous. For taking loans they have to provide bank as a security like
jewelry or land given to the bank as a mortgage. When they meet their requirements
they return amount of loan to the bank and bank returns their security.
Now due to the situations changed we are able to provide goods like rice, wheat,
wools etc to other countries after fulfilling our own needs.

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6.Business volume, reward honors & success stories act last

5 years
State bank give them target to meet the amount of 315 Arab in rupees it achieve
this target in one year successfully,
In 2012 MAM RUHI EXECTIVE VICE PRESIDENT has conduct all employees
conference, in this conference focus on small employees business give them priority,
reduce the disputes between employees in the organization, remove barrier between
the lower to top management communication and basically its purpose to succeed the
policies of the organization.
ZTBL also formed the women cricket team and this team play now internationally,
in its way our international relation are established,
ZTBL also introduces q private company that is KSSL (Kissan support supplier
limited) through this company it generates income and gives employment to people.
ZTBL hire the contractual people who work extra for the prosperous of the
organization.
In 2010 this organization introduce the MCO their strength is 295 in 2011 they
give profit to the organization.
During the last 5 year it provides information and introduce IT system in to
organization.
Salary of the employees increase thats why employees satisfied and work better.
In 2013 all branches of ZTBL in different cities now purchase their own buildings,
every branch provide vehicles to their employees.

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7.ACCEPTABLE SECURITIES, VERIFICATION OF THEIR TITLE AND

ASSESSMENT OF VALUATION/MCL
The band advances loans against the security of immovable/ properties and also
against personal surety vividly described as under.

S.N
Name of Property
O
Immovable Properties
I

Agricultural Land
1. Under Pass Book
2. Outside Pass Book
3. Under Alienability certificate

Ii

Commercial / Industrial Land under

Pass Book
Iii
Urban Residential/ Commercial Plots
in all localities outside Pass Book
Iv
Residential/ commercial Buildings
outside Pass Book
V
Lease hold rights of leased land(99
years lease)
Moveable Property
Vi
Unconditional Bank guarantee of
authorized scheduled banks

Vii
Viii

Xi
X
Xi
Xii

Maximum
Credit
appraised value

limit

of

80%
70%
66%
80%
75%
66% under Alienability Cerificate
70%
70%

Upto maximum amount of an

unconditional ban guarantee of
scheduled
Bank
after
keeping
sufficient
margin
for
unpaid
interest/return cost, charges and
expenses
Guarantee issued by Federal or Full amount of loan plus return and
Provincial Governments.
other charges etc.
Government bonds.
Full amount of bond with one or more
sureties afer keeping sufficient margin
for unpaid return costs, charges and
expenses
Government securities,
85% of face value or market value
whichever is less
Defance saving certificates/ FEB 75% of the face value
certificates
NIT Units
80% of face value or market value
whichever is less
Fixed/Term Deposit Receipts
85% if face value

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Xiii

Life Insurance Policies

Xiv

Pledge of potatoes seed potatoes.

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85% of surrender value with the

condition that life insurance policy will
be kept alive by prompt payment of
premiums
Upto 75% of Govt. support price or
market value which ever is less

8.Product/Service lines
Products

Seeds
Fertilizers
Poultry feed, chicks, medicine
Effective Microbes technology
Hire charges of farm power
Electric charges for tube well
Water rates
P.O.L
Hired labored
Fuel ration
Production loan for growth of mushroom
8.1Development loans

Installation of tube wells

Pumping sets
Fruit nurseries
Poultry farms structure and equipments

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Minor crops
Cold storage
Bee keeping
Bamboo cultivation
Bio-gas plant boring rig
Trucks
Wind mill
Open wells
Jungle clearance
Tobacco born
Hole digger
Milk chilling units
Solar energy pumps
Sulphuric acid generator

8.2Items of cottage industry admissible under Micro credit scheme (short term)
Food processing

Processing of grains
Processing of fruit and vegetables
Surganecane crushing machine
Noodles
Catering
Processing of dairy products
Ice cream making
Tandoor
Pop corn machine
Corn husking
Rice husking
Selling of meat

8.3Textile and clothing

Garments making
Hats and caps making
Shawl weaving
Silk cloth weaving
Carpets weaving
Wool knitting
Quilt making

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Nawar making
Darree making
Spinning wheels
Block printing

8.4Leather and leather products

Production of food wear

Leather garments making

8.5Wood products

Wood fences
Broom making
Chicks furniture making
Chairs making
Rope making
Basketry
Mat making

8.6Chemical product

Soap making
Processing of medicinal crops
Cropping of herbal

8.7Poutery

Pottery china and ceramics

Lime and plaster
Bricks toils and other structural clay products

8.8Metal product

Hand tools
Cutlery
Bolts, nets
Fodder cuter
Electric motors
Steel fabrication works

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8.9Handicraft production

Brass/marble handicraft
Baluchi embroidery
Paper based handicraft
Handmade toys and tools
Needle embroidery
Artificial jewelry

8.10General services

Support goods
Walking sticks
Candle making
Tea corner
Animal feed
Musical instrument
Key making
Fridge ,freezer
Watch repairing
Barber soap
Painters

8.11Farming

Dairy farming
Poultry farming
Fish farming
Agriculture
Goat farming

8.12Miscellaneous

Mushroom cultivation

9.Services
9.1Limit of loan under general credit

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Loan able items under agriculture production and development are to be treated
as item of farming. Maximum credit limit of such loans under general credit is RS
1.000 million. However, for self propelled combine Harvester and mobile seed
processing units under Japanese KR_11 Scheme the maximum credit ceiling has

been enhanced to Rs.2.500 million.

For different schemes introduced in the bank the maximum credit ceiling have

been fixed as mentioned against each:

Sada bhar scheme / Awami zarai scheme/kissan dost scheme for these schemes

5,00,000Rs /Sada bhar scheme/Awami zarai scheme/kissan dost scheme through one

window operation for these schemes amount is fixed 2, 00,000/.

General credit scheme for this purpose amount is fixed 1, 00,000/.

9.2Terms of loan

A loan may be short term , medium term or long term according to the period

high is required to be fully repaid;

A short term loan is fully repaid within twelve months of payment by the bank of

the amount of loan

A medium term loan is a loan which is not a short term loan and is to be fully

repaid in five years of payment by the bank of the amount of loan

Along term loan is a loan which is fully repaid in any period exceeding five years
from the date of payment of bank the amount of loan

9.3Persons eligible for loan

All parties, individuals, firms ,private and public corporate societies engaged in
agriculture who satisfy the bank that the loan spent on agriculture or development of
agriculture warehousing, marketing or proceeding of agriculture products and persons
engaged in cottage industry in rural areas are eligible for loans from the bank.
9.4Rate Of Return

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The rate return charged by the bank on loan is fixed by board of director from
time to time instruction issued by the state bank of Pakistan.the latest return rate of
14.50%

10.For General Credit

10.1New Loans
All new agriculture loans after 01-07-2004 would be charged @9% per annum.
Borrowers would be eligible for 1% in mark-up rate per annum w.e.f 01.01.2005if they
repay the installment on or before due date.
10.2Ongoing Loans
All tractor and tube wells loans disbursed up to 30.06.2004. All borrowers will be
eligible for 1% reduction in mark-up rate per annum w.e.f 01.01.2005 on repayment of
revised installment on or before due date including clearness outstanding installments
The agriculture mark-up @ 14.50%per annum on all ongoing agriculture,
disbursed up to 30.06.2004 excluding tractor and tube wells will remain applicable as
per existing terms and condition.
The rate of markup once fixed outset of the tractions should be increased by the
bank during the tenure of lending product
The rate of markup under micro credit scheme would be 18% whereas for timely
repayment rebate of 2% would be given
10.3For production Loans
Local currency loan: return @15% per annum plus 5% for installment
Foreign currency loans: 14% interest per annum. It increases foreign exchange risk 3%.
Charging of; loan @ 2% on working capital & 5% on medium/long term loan project
financing on defaulted installment is dispensed with & only applicable rate of retune i.e.
15% for medium/long term loan &18% for working capital in project cases would

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continue to be charged w.e.f 1.7.96 till full adjustment irrespective of the fact that
maximum product limit has already been arrived.

11.Selection of borrowers/farmers
In terms of regulation for agriculture financing-R-9 of state bank of Pakistan
,before considering proposals for any exposure(including renewal or restructuring)
exceeding Rs 5,00,000/. Individually or jointly, a reference should be made to the chief,
credit information Bureau, banking surveillance department, state bank of Pakistan
giving following particular instruction
Name(s), parentage(s), valid computerized as well as old national ID card.(s) &
addresses of the applicants till availability of valid CNICs of all registered borrowers.
Whether individual/joint applicants/firms/company
Loan amount applied for, with purpose
Names and addresses of concerns in which applicant has/have interest
Reference to CIB State bank of Pakistan is required for aggregate borrowing above
Rs0.500 million, which comprises of existing liabilities as well as fresh limit asked for.

12.Operational Procedure
12.1Selection Of Villages
Among the field force of ZTBL, mobile credit officers have to play a pivotal role.
Zonal chiefs must ensure that, in aggregate, at least 200 applications are preceded by
12.2Emphasis on Small Famer
The emphasis in this system is on small farmers i.e. those having 25 acres of
irrigated land or up to 50 acres of un irrigated land or combination of both(one acre of
irrigated land being reckoned as equivalent to 2 acre un_irregated land).

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12.3Extension through supervised credit system

In this way, extension means providing information to the farmers for planning the
farm, production, guidance in the implementation of the scheme, marketing and
repayment of loans. To make the supervised credit programmed a succeeds, the MCOs
will have to equip themselves with the background information on :

Physical environment of the area

Crop production and pattern
Land use
Soils
Livestock production
Marketing
Communication
Level of living
Social setup
Activities of other agencies

With this information the MCOs will be in better position to disseminate the
knowledge of agriculture technology through individual contact and groups meeting with
farmers
For providing information on improved technology, the followings point must keep in
mind
Village leader must be selected by the respectable group of farmers and must be
representative of farmers
Technical advice should be given for practice to be adopted should have a good
chance of success and majority of farmers should have adopted this
Only those practices should be recommended for which the required supply and
material is available
The mobile credit officer should have regular consultation with the agriculture
extension officer of the area for the new information it is useful to involve him in so that
he could easily cover large number of farmers

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Any recommendation must fit in a felt need: otherwise it will have little chance for
adoption.

13.Entertainment of Loan Application

It consist of application form which is issued by the bank its fee amount is 200
which must be paid by the borrower, these loan application form available at the counter
of all the branches of the bank and MCO must keep these loan files with selling them to
the farmers.
13.1Disclosure of banks charges to borrowers:
It has been observed by the state bank of Pakistan that details of different
charges being received by the bank from its borrowers are not disclosed at the time of
entertainment of loan cases. This situation leads to the exploitation of prospective
borrowers.
1 Price of loan case File

Rs.200/each

2 Equity contribution in all development loans

10%

3 Equity contribution in production loans

Nil

4 Equity contributions in working capital loans

10%

14.Types of Loans

Production loan fee is

Rs. 500/_
Development loans with tenure to Five years
Rs.1000/_
Development loans with tenure of above five years Rs.2000/_

15.Entertainment of Loan Application liabilities of Mobile Credit

MCO will issue receipt of loan application with prescribed form walk-in-client in
the branch as well as in the field. In his absences of deputy manager, assistant
manager will issue this receipt to the MCO for further processing.

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While entertainment of the loan application of the prospective borrowers,

following points must be kept in view;
1 Projected recovery to entertain new customers.
2 Development loan request will be given priority A, whereas production loan
would be disposed off under priority B.
3 After completion of legal documentation seniority list for development and
production loans would be maintained accordingly.
No applicant may be refused to receive his loan application merely on account of
fact that MCO concerned is not available in the branch.
The loan application fee and postal charges at prescribed rate must be deposited
by the applicant at the time of disbursement of loan with teller/cashier.

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16.Jurisdiction for entertainment of loan application

All matter relating to disposal of loan applications, including sanction of loan,
execution of loan agreements, safe custody of the loan record, payment of sanctioned
amount of loan and recovery therefore shall be dealt with by the branch, where the
development area is located. however, mortgage deed should be executed by the
branch where the security area is located.
The application can also be entertained for some projects directly by head office
depending upon circumstances and conveniences of borrower and the bank.
For the recovery of dues from the loanees, the assistances of branch in where
jurisdiction the security area is located.
When land proposed to be developed in the jurisdiction of two branches, the
application may be entertained in accordance with convenience of the applicant with
due regard to expenses involved in its appraisal.
In a case a loan is sanctioned to an agriculture who holds land within jurisdiction
of more then one branch, the branch sanctioning the loan should notify the details of
loan sanctioned, security, as declared by him in the application form to all other
branches in whose jurisdiction those lands are situated.
16.1Family Member And Relatives Of Defaulters
For the purpose of considering a loan to family members and relative of defaulters
the word family member and relative will include the following;(a) Family members: :husband, wives, sons, daughters
(b) Relatives: other relation in ascendants and descendants are relatives.
No loan shall be granted to family member i.e. husband wives, sons, and daughters
of a defaulter in any case. As regards in other relatives, if any one produces definite
proof to be effect that he or she has nothing to do with the defaulter and hi property is
separate and is being managed by his independent of defaulter, Zonal Chief on receipt
of evidence produced by the applicant duly recommended by the manager with full

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jurisdiction in support therefore shall decide whether his application is entertained or

not.
16.2Subsequent Loans to Borrowers of SAM (Special Asset Management) Loans
other than SAM Loans
The Sub-sequent lending to the borrowers who have settled SAM loans are not
allowed.
However the borrowers other than SAM loans who were able to outstanding loan
liabilities by availing write off or remission under any relief package shall continue to be
eligible to get fresh loan by his name including spouses subject to the existing criteria.
Appraised value in such cases would be worked out on the basis of lattes three
years average sale mutation duly incorporated by the concerned revenue officer and
then credit limit @50% would be worked out as per standing instruction of the bank.
In loan cases where under any relief package announced by the Govt./bank,
amount outstanding has been waived of in the past, the amount of fresh loan may not
be more than 85% of the principal loan arrived.
16.3Condo nation of Late Repayment of Loan
The policy of condo nation has been dispensed with. As per provision of credit
policy approved by board of Directors Willful defaulters of the bank shall not be
entertained for any further loan. However, where a default is due to circumstances
beyond the control of a defaulter, the bank may consider subsequent loan facility for
rehabilitation of client.
In the loan cases of defaulter under SBS/RFS the limit would be renewed with
10% cut after complete adjustment. In this regard disbursement in new cases equal to
previous loan .in case a borrower applies for 90% of the previous default of
development loans, he can get payment on the same day. In case of defaulter no
enhanced amount would be allowed till the defaulter repays the defaulter loan and
established his credit worthiness by availing loan up to 90% of the default loan.

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16.4 Loan application of Government/Bank/Coroprations

Government Servants and employees of autonomous or semi autonomous
bodies, while applying for loan must produce all the prescribed documents. They are
however, not required to produce No Objection Certificate form their controlling officer.
N Objection Certificate should not asked for from the ministers.
16.5Entertainment of Loan Application from ZTBL Employees &their relatives
It has been decided to allow entertainment of loan applications of the bank
employees. The loan would however be sanctioned by zonal Credit Committee. Family
members while other relations in ascendants and decendantsare relatives.
The loan cases of Zonal Chief &his family member would be sanctioned by the SVP,
credit Division, ZTBL HO, Islamabad.
The employee would give guarantee by signing the prescribed L.A.Form &IB-7
Agreement as granter. He would also produce bond on prescribed Performa to be
executed on non-judicial stamp adhesive of proper denomination.
Special schemes code No.061 would be mentioned while making disbursement in the
loan cases of bank employees and other relatives. The copies of sanction letters to be
issued in the said category on cases would be adored to the Credit Operations Depts. In
addition to practice already being followed.
Data relating to recovery of loan & default will be produced by MIS at head the
end of each month for persuasion of recovery by Recovery & SAM Division and its
register regular monitoring.
When an application for loan case file is received for action by any employee of the
bank in which he or any his relative is personally concerned, he shall immediately bring
facts to the notice of his immediate higher officer, who unless there are some special
reasons thats why application transfer to another employee.

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No officer shall investigate facts of any application for loan. In which he is personally
concerned.
No branch manager shall investigate sanction any loan in which he is personally
concerned but shall refer application to Zonal Chief for disposal.
No Zonal Chief shall sanction any loan in which he or his relative is personally
concerned but refer application to Head Office.
No officer in the Head Office shall sanction any loan in which he or his relative is
concerned.
An application in which president or his family member is concerned shall be referred to
board.
In case of an application which is submitted to the Board or Commettie , member or any
Director, if he or his family is personally concerned in loan the receipt of the notice
consideration of the application in a meeting of a Committee or Board, notify to the bank
and shall abstain from taking part in meetings of Board Credit Committee.
As advise by SBP provision of sanction 24 of the banking Companies Ordinance 1962
should kept in view while granting facilities to bank relating parties.
16.6Loan Applications From Part Time Employees Of The Bank
(a) The general condition laid down in respect of Bank employees and their relatives are
equally applicable to part time employees of the Bank.
(b) The loan case part time employees such as legal Advisors and Authorized Medical
Attendants including those of their dependent for standing surety may be got
approved from Head Office.
(c) The Legal security of the loan cases of the Legal Advisors and their relatives should
be got done from Legal Advisor of adjoining Zone/Branch Office.
16.7Entertainment of Loan Application from Deaf and Dumb Persons

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Alttthough there is no Legal bar for grant of loans to deaf and dumb persons, yet
it is risky to deal with such persons as there is a possibility that they dont show their
doings.
Owing to risk involved, no application should be entertained to deaf and dumb
persons without prior permission by reference to respective Zonal Chief.
It is necessary to verify at appraisal stage, the antecedents, character, credit
worthiness and person integrity, in addition to the form conditions, capability of such
borrower who understand the terms of loan and not be denied at any stage.
If applicant is personally known to any responsible Govt. Officer or Patwari or any
other respectable person of the same village who can safely vouch the application
If the application is literate he should be asked in writing whether he has read
and understood the documents of loan application and then loan application executed
by him.
At the time of execution of mortgage

surety bond etc. preferably the same

person who had witnessed the application should identify the applicant and record that
the applicant has to be made understand by the signs and gestures the contents of loan
application, sanction letter, are understood and is accepted the terms and condition of
loan.
It would not be advisable to deal with attorneys of deaf and dumb persons.
16.7Entertainment of Loan Application of a Build Person
(a) A build person should be treated par with an illiterate person. The loan
application from blind persons can be entertained.
(b) However, officer of the bank signing mortgage deed bond etc. on her behalf
should certify that he has read or explained the document viz.loan application
form, sanction letter, mortgage other document etc. to borrower in the absence of
witness and borrower has understood the same putting his signs,
16.8Entertainment of Loan Application of Disabled Persons

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If a person is not physical well for signs impression on document having his both
hands missing due to any misshape, he can put thumb impression of left foot and if the
left foot also missing then impression of right foot would be taken. In certain cases the
borrowers may not having both hands and foot fingers are found without lines and
contours. In such cases thumb impression of borrower should be affixed on each and
on every document of the Bank where thumb impression is required to be affixed and it
should be verified on every document MCO concerned by disclosing this fact in writing.
Moreover a photograph of the borrower may be obtained by putting a thumb impression
on the backside of photograph which is duly attested by MCO concerned geniuses of
thumb impression of the borrower.
16.9Entertainment of Loan Application from Cooperation Society
(a) Generally, loans to cooperative societies are not granted but loan to members of
cooperative societies may consider.
(b) Loans to cooperative societies engaged in actual farming may be considered,
after obtaining prior approval from respective Zonal Office.
16.10Grant of Loan to Government Agencies/Military Organizations
There are some Govt. bodies Departments who possess agriculture lands either
owned. Though main function of these bodies is not development of agriculture yet the
development and cultivation of such land possessed by them do serve cause of
agriculture development. In this Zonal Chiefs may allow entertainment for equipment
and implement for only mechanized cultivation on following conditions:

The tractor is required for and will actually be used for the purpose of agriculture;
The repayment of loan installment is granted and assured by the competent
authority of the Government, they should make provision in their budget for

annual repayment to the bank.

Security is taken as per standing instructions.
All other formalities may also be observed strictly.
Borrowers contribution may be taken at the prescribed rates

17.Contribution Of Organization Toward Economic Development

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The Establishment of Zaria Taraqiati bank Ltd. Play an important role in the
development of our economy because our country is an agriculture. Our whole
economy is circles around the agriculture production, and our 66% our population is
connected with agriculture, and 55% of this sector contribution in the overall country
production. The more then half the population lives in villages, their lives totally depend
upon agriculture production. They have only source of income from selling their goods
after producing products. The establishments of such institution provided them loans to
meet their requirements.GDP of the country also increases due to this.
Approximately, every year floods comes in our country and destroy their crops for
this purpose such intuitions provides funds and loan to farmers who are affected from
such situations .While concerning this issue rains also affected their income because
due to heavy rains the quantity of water increased in the rivers and water comes out
,reached their crops destroy them . Especially, the areas which are affected from this
most parts of the Punjab,sindh areas etc, for savings the farmers from such natural
disasters banks provides them funds, loans etc.
Thus such organization plays an important role in the development of the
country. Agriculture Is the major source of income of our country. No doubt it is the
backbone of our country. Such organization introduces such schemes which are easily
affordable to everyone on lower interest rates conditions. Government gives them
subsidiary on fertilizers, chemicals etc.
Due to such reasons farmers can buy easily chemicals, fertilizers seeds ,machinery etc
with the help of such organizations .Their lifestyle is changed

now because they

generate enough money to fulfills their needs ,after selling their products in cities.
Agriculture provides employment to majority of people.

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18.Orgtanizational Structure
18.1Number Of Employees
1.
2.
3.
4.
5.
6.
7.
8.

Chairman(Selected by prime minister)

Executive vice president(acting on the advices of chairman ,work in head office)
Senior executive vice president
Senior vice president(works in zonal office)
Vice president
Assistant vice president
Officer grade_(assistant manager operation)
Officer grade_2(mobile credit officer, business development officer ,public

relation officer)
9. Senior Assistant
10. Assistant
11. Typist ,dispatch, clerks
18.2Head Offices
Its main office is in
Capital Islamabad
ZARAI TARAQIAT BANK Ltd.
Near Pakistan Monoment Zero Point Islamabad
18.3INTRODUCTION OF ALL DEPARTMENTS
The departments of the are described the followings..
1.
2.
3.
4.

HRM ( in this customer caring is include)

Administration dept...(in this appointment of the new employees is done)
Finance dept...(in this dept.. salary ,checks loans deposited etc handles)
Investigation complaint unit dept(in this customer complaints are observed and

find out their problems solution)

5. Board of government dept...
6. President scarcity
7. President support dept.
8. Data processing unit dept.
9. Legal department(in this it checks either all works done under legally)
10. Credit dept.
11. Research and planning dept.

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12. Protocol dept.

13. Task force dept.
14. Policy and regulation dept.
15. Training dept.
16. Risk management dept.
17. Central account dept.
18. Public relation dept.
19. Audit dept.
20. Recovery dept.etc
19.Comments On The Organizational Structure
The structure of the organization is very well. In bank employees have their own
cabins where they could easily sit and work. The bank manager has well air conditioner
room with proper ventilation system. The organization is well decorated and well
furnished. The organization has all the latest technology and modern facilities like
computer, internet, printer, phone and air condition etc.
Basically, when a person who need loan he comes to the bank for this purpose he has
to take application form cashier and after filling the form he has to be submitted it to the
operation manager . After this process he obtained the loan. In this period of my
internship I observed them how they interact with the customers. Their main focuses on
to introducing customer caring, utility bills and hajj applications.
This bank plays a major role in the development of our country. This bank is established
for the purpose of providing loans to the farmers without any differences between poor
and rich people. Subsidy on fertilizers and other chemicals providing to the farmers so
that they could easily purchase these products which fulfill their needs.
Due to establishment of this bank the confidence of the farmers increases now their
goes on the path of prosperous. This bank conduct meetings with the foreign countries
to invest their capital here and earn profits. Our delegations visited foreign countries and
convince them to visit here and do investment in different sectors.

20.Islamization of banking system

20.1Salient Feature of the System

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Islamic banking system is being followed by Bank, in the line with given policy of State
Bank of Pakistan.
20.2Working methodology and procedure
It is necessary that the provisions, mechanism and methodology contained in the loan
agreement are strictly observed. After a loan application has been entertained and
issued in accordance with the prevalent instructions the applicant will required to
complete all of the formalities of the branch for execution of loan agreement and
security document. Loans under this system shall continue to secured as at present for
the total amount of Banks investment in the purchase of the required goods
The goods required by the customer will be supplied to him either through
the dealer on the approved list of Bank on the authority of supply order Annexure-29
issued by the bank, against valid receipt Annexure-29/A after the customer is satisfied
himself the quality and quantity of the goods, or the customer shall select goods from
the market and after being satisfied from the quality and quantity of goods he then make
the payment on the behalf of the Bank.
Customer shall take delivery of the assets, goods etc, after passing the inspection
process and having been satisfied from the assets goods etc., are in accordance with
the specification approved by the customer. The Bank doesnt responsible for any
shortfall, defect whatsoever which may be subsequently discovered by the loanee about
the goods and assets and customer shall solely be responsible for the same and shall
indentify the Bank incur as a consequences of any shortfall, defect that may be found in
the assets, goods etc.
For the loan issued to the customer in cash for purchase of assets, goods etc. on behalf
of and as an agent of Bank, the customer shall ensure its proper and correct application
for the purpose for which it is drawn and all the purchases made by the loanee under
this agreement shall be deemed to have been made by the Bank.

Part 2

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1.INTERNEE WORK
1.1Bief introduction of internees office branch
I got internship in a Zaria Taraqiati bank Ltd. In wazirabad. That I established
for the purpose of Agriculture Production Development. The building of the bank is
good; all rooms of the bank are well furnished and well decorated with full air
conditioner. Bank has all the latest technology.
Employees of the bank are very co-operative for me; they help me a lot in the
preparation of my internship report. The bank manager is very polite and kind with me.
Mobile credit officer of the branch is very kind and he guides me a lot in my work
whenever I feel difficulty during my work he helped me a lot. The behavior of the
employees with me and with client is very polite. The environment of the bank is very
peaceful and calm, I enjoyed there during my working period.
There is a great hustle and bustle in the organization of the people who are coming to
bank for the purposing of taking loan, or depositing amounts.
I learned a lot from this internship experience which is very helpful in my future career.
This experience gave me a lot of confidence.
I started internship into the bank on the date of 15_8_2o13, and leaving the bank on a
date of at
1.2Details of supervisiors
Mobile credit officer is my supervisor, his name is Mr. Tanvear Ahmed. He
possessed all good abilities which a good personality have, he is good looking and he is
honest in his work .he is regular and punctual, he is a good communicator. He is very
kind with me and his behavior with others is very polite.He performs his duties well, his
duty is to introduce hajj scheme.
Office responsibilities

Dealing the customer

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Check the bank securities decument

Meeting and visiting the farmer and farmer lands
Check the behavior and repayment behavior
Check the record of land and revenue in Punjab revenue Department meeting

the Patwari and tehsildar and AC in this department

To recommend the Loan for agriculture for farmer
To make the all document of loan application form
To get the cash in field work
To meet and search the new agriculture farmer to spent the loan
MCO make many defaulter list
Visit in villages minimum twenty tour in village.
To Introduce new loan scheme
To get cast deposit and utility bills
Introduce the hajj application
To introduce and aware all type of related bank

1.3Details Description Of The Departments Where I Work

During the period of my internship I worked in different departments like
operational dept. cashier.MCO, Typist AMO. in this dept. I learned the process of giving
and how to depositing the loan process.
1.4Details of my activities during my internship period
During my internship experience I worked in different departments like cashier dept.
and operation dept. During this time I make vouchers, dealing with the customer,
conducting interviews of the operation manager, bank manager, and mobile credit
officer, meeting with patwari for discussing the revenue record of the bank and filling
forms of taking loans.

Dealing the customer.

Check the bank securities document.
Meeting and visiting the farmer and farmer lands.

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Check the behavior and repayment behavior.

Check the record of land and revenue in Punjab revenue Department meeting

the Patwari and tehsildar and AC in this department.

How recommend the Loan for agriculture for farmer.
To make the all document of loan application form.
To get the cash in field work.
To meet and search the new agriculture farmer to spent the loan.
i make many defaulter list
Visit in villages minimum twenty tour in village.
To Introduce new loan scheme.
To get cash deposit and utility bills
Introduce the hajj application form
To introduce and aware all type of related bank for women.

2.Summary of learning
2.1What

skills and qualities you think that you have gained

from the internship.

I think that I learned the good negotiating skills, time management, how to
interact with people in a best way, how to handle the responsibilities, good behavior,
technically skills, confidence level increases ,and what kind of organizational behaviors
are acceptable or not and also learn how to accomplish the work effectively and
efficiently, need of the strong relationship among employees how can be created, and
learn about customized system how it can be helpful in avoiding the mistakes which
occur due to the manual system ,tactful communication etc.
2.2What kind of responsibilities you have undertaken during the

internship period.

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I have done different activities there like making vouchers, and mobile credit
officer, meeting with patwari discussing about the revenue record of the bank, dealing
with customers.
2.3How you think the internship influence your future career plans?
This internship has a great impact upon my personality, in future I can easily
handle the responsibilities &problems which incurred in my life in coming years.
I learn how to perform duties of the job how to perform them effectively, means I learned
about the job experience. Its like training for me which can be helpful in my future job.

3.Conclusions of the report

3.1A summary of key conclusion derived from your internship

experience
3.2New knowledge acquire
I learn a completely new knowledge from this internship like about the bank credit
and depositing the amounts ,rules &regulations of the banks ,policy of the banks ,how
the employees work in the organization ,meeting with different type of people ,etc.
3.2ew exposure
In this internship I learned about new atmosphere or environment of the bank, and learn
about the different new things.
3.3People diversity

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In this I observed the behavior different people while communicating with them, and
how to interact with different age groups, employees, customer, this gave me a lot of
confidence to interact effectively with people.
3.4Tactful Communication
To interaction with the people it is necessary to learn tactful communication, due
to this we can impress or connivance people easily.

4.SWOT Analysis of the organization Strength

Enrich Agriculture relations between the 343 branches of the organization

Gross root level contract with farmers through functionaries
Predominant position of Agriculture financial market
Support of government ,state bank of Pakistan, and IDA
Staff training facilities
Marketing done with customers in friendly language
Supervised diversify creep system

4.1Weakness

Poor perceived image

Political interference into its matter
Skill mismatch staff
Over supervised management structure
Lack of commercial mindset
Around 600 pending disciplinary cases

4.2Opportunity

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Micro finance market management

Potential for bring huge uncultivated area under production
Potential for marketing new product line on commercial basis

Post restructuring potential for obtaining financial credit line

4.3Threat

Competitive commercial bank

External pressure to implement non commercial directives
Various unrecovered loans taken by big parties
Political and economic instability and law &order situation
Public sector organization
Water disputes within country

5.Recommendations of the problems that are found in the SWOT

Analysis
Poor perceived image is the major hurdle in the progress of our country growth,
because in our country old method for cultivation are used like in mostly area of our
country does not use the latest machinery, for resolving this conflict provide them loans
so that they can adopt the latest methods of cultivation.
Famers of our country mostly are not educated and not aware about the need of age
,for this purpose we have to introduce such methods like presents adds on TV ,on
newspapers and internet through these sources they can easily get information about
the cultivation.
Politically interference in its matter is also makes hurdles in its progress, its working
should be separate from the major political parties and remove their influence and
pressure on bank for obtaining loan. Unskilled staff makes trouble for its progress,
trained, experience and experts employees should be hired, and salary of the
employees should increase bounces, firing benefits, holidays packages should be given
to them so that they work effectively and efficiency. Authority of the job must be given to
them so that their take good decisions about the progress of the organization.

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All pending of its cases should be solved firstly ,to carry out spot investigation of loan
cases as per standing instruction of bank and record sanction.

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