Internship Report On

KHUSHHALI MICRO-FINANCE
BANK

Student Name/Internee: Danish Ali

Roll No: BBA-16-119 (B-Section)
Session 2019
Name of Supervisor; Sir Dr. Salman Bashir
Submission Date: 04/11/2019

Department of Business Administration

Shah Abdul Latif University

1
Khairpur Mir’s
 DEDICATON
This piece of work is dedicated to my beloved parent, friends and teachers who prayed for
my success. Especially to my dear Mother, who made me able to be the person I am.
Without her constant efforts and kind prayers I would have been nothing

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 ACKNOWLEDGEMENT

A milestone of this nature never has been possible to achieve without the support of a
galaxy of some truly loving person. This event and the process leading to accomplishment
of my objective have given me a realization in depth of immense blessing of Allah.

This work provides an on the job experience to the students. I was placed at Khushhali
Bank Ranipur branch as an internee for the time period of four weeks. This provided me
with leaning knowledge and experience in several areas. Many people have contributed in
the completion of this internship report
My great appreciation goes to the whole team of Khushhali Microfinance Bank Ranipur
branch. They provided me with every kind of knowledge and help to complete this report.
I am also thankful to my teachers of Shah Abdul Latif University for knowledge they gave
me and their guidance in every field.
Last but not the leasti would like to thanks my parents who provided me love, support,
patience and good education.

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 Executive Summary:
Khushhali micro finance bank works under the supervision of state bank of Pakistan and
the main purpose of this bank is to reduce the poverty of Pakistani people through providing
financial services. Khushhali Bank limited is allowed the products and the service. These
services and the product are loan, Deposit, Remittances and the other products like mobi
cash easy paisa, Sehat khushhali Policy, Sehat khushhali plus Policy, Call Deposit Receipt
(CDR) Call Deposit Receipt is the payment of the commitment on the presentation of the
call deposit receipt .Khushhali Bank limited is also providing the service online to the
customer.
This four weeks internship report consists of profile of the banking sector (industry), its
origin, the functioning, how the banks are classified on the based on function, ownership
etc. and the trends being followed in the industry. Besides the above mentioned this report
is focused Khushhali bank and to be more precise it discusses the inner details of the bank
situated in Ranipur Branch. Khushhali Bank origin and its setup in Pakistan are also
discussed in the report. Khushhali Bank came to Pakistan and gave banking sector a new
horizon, today khushhali Bank has set firm foot in the industry. The report further guides
through the department and working of the general banking. The activities taking place in
the bank, the various products of banking are discussed in the report. The report is a very
good description of what khushhali Bank and its significance is. Here I have discussed
operations and objectives of KMBL and some departments where I have worked and I have
also mentioned those activities which are performed by me.

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 TABLE OF CONTENTS
1. Overview of the organization ................................................................................................ 7
1.1 Brief history of kushhali microfinance Bank: ................................................................... 7
1.2 Introduction: ........................................................................................................................ 7
1.3 Objectives OF KMBL: ........................................................................................................ 8
VISSION ..................................................................................................................................... 9
MISSION .................................................................................................................................... 9
VALUE ....................................................................................................................................... 9
1.4 Policy of KBL: ...................................................................................................................... 9
1.5 Competitors OF KBL: ......................................................................................................... 9
2. ORGANIZATION STRUCTURE: .................................................................................... 11
2.1 ORGANIZATION STRUCTURE: .................................................................................. 11
2.2 Comments on the Organizational Structure: .................................................................. 11
2.3 Branch structure: ............................................................................................................... 12
2.4 Departments: ...................................................................................................................... 12
2.5 Branches: ............................................................................................................................ 13
3. PLAN OF INTERNSHIP PROGRAM: ............................................................................. 15
3.1 Brief Introduction of Branch ............................................................................................ 15
3.2 Products of KBL: ............................................................................................................... 15
1. Assets Products: (LOAN) ............................................................................................ 15
2. Liabilities Products: (DEPOSIT)................................................................................ 16
3.3 Starting and Ending Dates of Internship:........................................................................ 16
3.4 Departments where I did work:........................................................................................ 16
4. TRAINING PROGRAM: ........................................................................................................ 17
4.1 Description of the Operations Performed by Employees of the Bank: ......................... 17
4.2 Complete Description of the Activities Performed by Each Staff Member: ................ 17
1. Branch Manager: ............................................................................................................. 17
2. Operation Manager: ........................................................................................................ 19
3. Teller or cash officer:...................................................................................................... 19
4. Customer Services Officer: ............................................................................................ 20
5. Relationship Officer: ....................................................................................................... 21
4.3 Complete Description Of The Tasks Assigned during Internship: ............................... 22
5. REFLECTIVE JOURNAL ENTRIES: ................................................................................. 23
5.1 First Week .......................................................................................................................... 23

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 5.2 Second Week ...................................................................................................................... 23
5.3 Third Week ......................................................................................................................... 23
5.4 Fourth Week ....................................................................................................................... 24
GANT Chart ............................................................................................................................. 25
5.5 Overall Observation in My Internship Program: ........................................................... 25
6. WORK SAMPLES: ................................................................................................................. 27
7. CRITICAL ANALYSIS .......................................................................................................... 27
8. SWOT ANALYSIS OF KBL: ................................................................................................. 29
9. CONCLUSION: ...................................................................................................................... 30
10. RECOMMENDATIONS: ..................................................................................................... 31
11. REFERENCES: ..................................................................................................................... 33

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 1. Overview of the organization

1.1 Brief history of kushhali microfinance Bank:

Khushhali Bank was founded in the year of 2000, and was established as the part of the
government of Islamic republic of Pakistan’s reduction strategy and microfinance sector
development program (MSDP) with assistance of Asian Development Bank (ADB).
Khushhali microfinance Bank’s first branch was launched at the heart of poverty means in
Dera Ghazi Khan on August 11th. khushhali Bank limited was a part of the Pakistan
government bank in 2000. The Headquarter of Khushhali Bank limited is in Islamabad.
First of all the Khushhali Bank limited take license to the State Bank of the Pakistan then
give the service to the Pakistan.

There are 4 main purposes of the Khushhali Bank limited. These are given below:

1. Social Build Capital

2. Reduces risks faced by the poor
3. Poor Household increased income
4. Enhanced outreach particularly to the women.

1.2 Introduction:
Khushhali Bank limited provides the loan the low rate to the customer. The purpose of the
load is the customers done its own work. There are many types of the work of the customer.
All types of the persons take the loan, farmers’ carpenters, marriages purpose, poor men.
Khushhali Bank limited is allowed the products and the service. These services and the
product are loan, Deposit, Remittances and the other products like mobi cash easy paisa,
sehat khushhali Policy, sehat khushhali plus Policy, Call Deposit Receipt (CDR) Call
Deposit Receipt is the payment of the commitment on the presentation of the call deposit
receipt.
Khushhali Bank limited is also providing the service online to the customer. These services
are online jobs, online download form, online branches service, online activities, online
facilities, online information of the loan and the other all activities.
Khushhali Bank understood the significant requirements of these clients and gained
knowledge in fields of Education, Health, Population Control, Empowerment, Social
Mobilization, Training and Development which are the basic tenets within this segment.

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In turn these NGOs and organizations also grew in line with Khushhali Bank as well as
the micro credit requirement of the communities in which they are serving, has been
adequately addressed.

1.3 Objectives OF KMBL:

Being a commercial based micro finance bank, KBL purpose is to: The
purpose of KMBL to establish a sustainable platform of financial services to the poor
accompanied with retail delivery System.
 The purpose of KMBL to facilitate an environment where microfinance can prosper
within Pakistan.
 The purpose of KMBL to assist the central bank in setting up an appropriate and a
responsive framework where microfinance institutions operate on sustainable grounds,
thereby expanding their outreach to the poor.
 The purpose of KMBL to Promote transparency, financial firmness and high quality
governance as leading indicators within country’s microfinance sector.

 The purpose of KMBL to provide affordable financial and social services to the poor,
for a significant impact on poverty reduction through:

 The purpose of KMBL to increase income of poor households.

 The purpose of KMBL to enhance outreach particularly to women.
 The purpose of KMBL to build social capital.
 The purpose of KMBL to reduce risk face by the poor.

The MSDP (Microfinance Sector Development Program) provides an integrated

Package of policy reforms and most optimum means for institutional development, with
the objective of outreaching expansion to facilitate growth of the microfinance banking
industry. (Source: https://www.khushhalibank.com.pk/)

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VISSION
To be a leading microfinance bank providing financial services to micro, small
and medium enterprises and low-income households across Pakistan.

MISSION
To strive for excellence and to adopt sustainable practices for the best long-term
interest of all stakeholders.

VALUE
 Empowerment
 Excellence
 Ethical

1.4 Policy of KBL:

In KBL Khushhali Bank limited the head office of the bank is responsible to develop
policies and procedures about all the products, services, management and marketing related
activities, it offer limited authority to the provincial and district level branches. KBL
Khushhali Bank limited Provides Assets Products and Liabilities products in different
categories. KBL Khushhali Bank limited provides loan to those person who not already
get loan more than Rs30,000 from any commercial and microfinance bank that
information KBL get from MFCIB (Micro finance credit information Bureau) and ECIB
(Electronic credit information bureau). Person only get minimum Rs20,000 and
maximum Rs150,000. Person must have account in KBL so First person open account
in KBL then they are further proceed for deposit and loan.

Source: (personal communication with KBL bank’s employee)

1.5 Competitors OF KBL:

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 In order to assess the true position of organization in the market it is necessary to
identify the identical and differentiated competitors of organization, KBL is
operating in the field of Microfinance in which dozens of institutions are serving in
Pakistan in the shape of financial and non-financial institutions.

 NRSP Microfinance Bank

 Apna Microfinance Bank Ltd. (formerly NMFB)
 FINCA Microfinance Bank Limited
 Pak-Oman Microfinance Bank Ltd. (POMFB)
 Tameer Microfinance Bank Ltd. (TMFB)
 The First Microfinance Bank Ltd. (FMFB)
 The Punjab Provincial Cooperative Bank Ltd
 U Microfinance Bank Limited
 Waseela Microfinance Bank
 Karakuram Bank
 Network Micro Finance Bank
 Rozgar Micro Finance Bank, Karachi
 Kashaf Microfinance Bank Limited

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 2. ORGANIZATION STRUCTURE:

2.1 ORGANIZATION STRUCTURE:

Board of Director

CEO/President

Head Chief Chief Cheif Company

Chief Head Retail Head Chief Risk
Human Internal complainc informati legal and
Financial Banking Operations Officer
Resource auditor e officer on officer judicial
Officer
counsil

2.2 Comments on the Organizational Structure:

This is the perfect structure of an organization, here you can see that this hierarchy shows
the responsibilities and authority flows top to bottom and here is the span of control
every person is responsible to answer the above person.

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2.3 Branch structure:

Area MAnager
MR. Mushtaq Ahmed

Distribution
Area Co ordination Supervisor
Officer Branch Manager
MAHTAB ALI

Relationship
Operational Manager Manager
KHADIM HUSSAIN IMRAN ALI

Credit Customer service officer Teller/Cashier Loan Officer

Administrative MR. AMJAD ALI
SHAFQAT ABBAS SHAR MR. IMDAD
officer
HUSSAIN

2.4 Departments:

 Compliance Department.
 Retail Department.
 Operation Department.
 Product Designing Department.
 Internal Audit Department.
 IT Department.
 Human Resource Department
 Finance Department.
 Marketing Department.

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2.5 Branches:
31. Fazilpur
1. Abbotabad
32. Fort Abbas
2. Ahmedpur East
33. Ghotki
3. Alipur
34. Gojra
4. Anarkali Booth
35. Gujar Khan
5. Arifwala
36. Gujranwala
6. Badeh
37. Gujrat
7. Badin
38. Hafizabad
8. Bagh
39. Hala
9. Bahawalnagar
40. Haripur
10. Bahawalpur
41. Haroonabad
11. Basirpur
42. Hasilpur
12. Bhakkar
43. Hassanabdal
13. Bhalwal
44. Havelian
14. Buner
45. Hyderabad
15. Burewala
46. Islamabad
16. Chakwal
47. Jahanian
17. Charsada
48. Jalalpur Pirwala
18. Chichawatni
49. Jampur
19. Chiniot
50. Jaranwala
20. Chishtian
51. Jhang
21. Chowk Azam
52. Jhelum
22. Chowk Sarwar Shaheed
53. Jhuddo
23. Dadu
54. Kahror Pacca
24. Daherki
55. Kalur Kot
25. Darya Khan
56. Kamoki
26. Dera Ghazi Khan
57. Karachi
27. Dera Ismail Khan
58. Karor Lal Essan
28. Dunyapur
59. sukkur
29. Faisalabad
60. Khairpur
30. Fatehjang

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61. Ranipur 92. Nawabshah
62. Khairpur Tamewali 93. Nowshera
63. Khanewal 94. Okara
64. Khanpur 95. Paharpur
65. Khushab
66. Kohat
67. Kot Addu
68. Kot Chutta
69. Lahore
70. Larkana
71. Leyyah
72. Liaqatpur
73. Lodhran
74. Malakand Agency
75. Mandi Bahaudin
76. Mandi Yazman
77. Mankera
78. Mansehra
79. Mardan
80. Mian Channu
81. Mianwali
82. Minchinabad
83. Mirpur
84. Mirpurkhas
85. Mithi
86. Multan
87. Muzaffarabad
88. Muzaffargarh
89. Narowal
90. Nashero Feroze
91. Nasirabad

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 3. PLAN OF INTERNSHIP PROGRAM:

3.1 Brief Introduction of Branch

The branch of khushhali microfinance bank where I completed my internship is located in
Ranipur near Mazhar Model School. It operates 6 days in a week from 9ám to 5.30pm.
There are two main departments here one is sales and other one is operations. Mahtab Ali
(branch manager) is responsible for whole performance of the branch, operation manager
(OM) is Khadim Husain who is responsible for operations of branch, Imran Ali is
relationship manager managing relations with customers and employees of bank. The
primary work starts from CSOs (customer service officers) who works under the authority
of OM. One more thing I want to add is that there is a friendly environment and whole staff
of the branch sincerely responding to the customers.

3.2 Products of KBL:

Khushhali Microfinance Bank Limited (KMBL Ranipur Branch) provides asset products
and liability products. Assets Products included secured and unsecured products. These are
detailed below:

1. Assets Products: (LOAN)

A. Secured Loan.
1. Khushhali Cash Sahulat:
2. Shandar Bachat Scheme:
B. Unsecured Loan.
1. Khushhali Qarza:
2. Khushhali Qarza plus:
3. Khushhali Livestock Loan:
4. Sarsabz Karobar:
5. Khushhali School Loan:
6. Khushhali Easy cash:
7. Micro Small Medium Enterprise.
8. Khushhali Sarmaya (Micro Enterprise Lending):

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 2. Liabilities Products: (DEPOSIT)

A. Current Account:

1. Current Deposit Account:

2. Asaan Account:

B. Saving Account:
1. Mehfooz Account:
2. Behtreen Bachat Account:
3. Karobari Munafa Account:

C. Fixed Deposit:
1. Khushhali Izafa Certificate:
2. Khushhali Aamdani Certificate:

3.3 Starting and Ending Dates of Internship:

My four weeks internship program was started from 20TH August 2019 TO 17th Sept 2019.

3.4 Departments where I did work:

I did more manual work because the bank’s work was more sensitive. These are the
departments where I did work.
1. Sales department: filling customer’s request form etc.
2. Operations department: I worked with CSO (customer service officer) where I
created new customer’s ID and account.

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 4. TRAINING PROGRAM:

4.1 Description of the Operations Performed by Employees of the Bank:

All Khushhali Bank Limited Branches of Ranipur area works under the supervision of Area
Manager Mushtaq Ahmed and branch manager will monitor and supervise the branch
operations, branch operations are divided and categorized among the staff according to
their job specified responsibilities in bank. Basically the banks functional structure
comprises on two divisions, which differ in function but working together as a team
because their tasks are interconnected.

Relationship management:
Relationship management relates with acquiring and retaining new customers and
maintaining profitable customer relationship with them, this department consists of 1
relationship officer and 15 loan officers.
Operations:
Operations department is totally concerned with basic daily operations of bank and it is
running under the head of operation manager with customer services officer, teller/cash
officer and credit administration officer.
These both functional areas are working under the supervision of branch manager the head
of branch and responsible for each and every activity taking place within the premises of
branch, here the daily operational responsibilities of the employees working in branch are
prescribed along with the important processes falling under their supervision.

4.2 Complete Description of the Activities Performed by Each Staff

Member:

1. Branch Manager:
The branch manager at Khushhali Bank Limited Ranipur branch is the head of branch and
responsible for planning and maintaining branch sustainability, profitability, security of
material and non-material assets and keeping the branch operations at sound track by

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preserving the good corporate environment and following banks policies and procedures,
also the branch manager is responsible to prevent and resolve operational and
nonoperational issues.
Planning:
Branch manager is responsible for planning and achievement of profit and nonprofit
objectives of the branch, as setting the profitability targets as loan targets, number of new
customers, number of customers to be retained, operational areas to be served and strategies
for the growth of branch.

Funds management:
Fund management is central issue of concern at banks that’s why it is the basic activity of
branch manager to manage the funds of bank such as banks investments in different
projects and balance between banks assets and liability products in order to smoothly
compensate banks customers.
Service quality:
Branch manager is accountable to maintain the quality of banks services, because the
relationship between bank and customers is based on trust, that’s why it is mandatory for
banks to provide reliable and satisfactory services to its customer, the branch manager will
ensure the service time should be minimum as per bank policies and customers are
respectfully entertained by staff in branch.
Compliance of policy and procedures:
This is the key function of the branch manager’s job that he has to keep close watch on the
transactions for policy compliance and check for errors and reasonable mistakes, which
could be harmful for bank service quality.
All the assets and equipment’s which are acquired for bank use must be kept secured and
maintained in case of any damage or for acquisition of new assets the branch manager is
responsible.
Staff development:

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Branch manager also required to provide the necessary training to the new as well as old
employees especially in case of new products and services or new equipment’s are acquired
for bank. (Communication with branch manager)

2. Operation Manager:
Branch operation manager is responsible to regulate and monitor all ongoing transactions
conducted by cash officer and CSO, and check for compliance of procedures as well as
reasonable errors and then approves them for completion, the core responsibilities of
operation manager are:

Managing cash requirements:

Operational manager has authority to maintain cash requirements according to specified
limit at the bank which is up to maximum 2 million rupees, in case of shortage or excess
of cash he has to deposit or withdraw it from banks account maintained in other banks, also
the operation manager is responsible to manage cash vault or safe at bank.

Joint custodian of cash vault keys at bank:

Operation manager and cash officer jointly responsible for the handling of safe keys in
which branch cash is placed and no one of them authorized to open it individually for cash
in and out, and entries in cash in out register must be placed after opening the cash vault
under operation managers supervision.

3. Teller or cash officer:

Teller or cash officer is responsible to deal with the most risky/sensitive asset of bank
which is cash, that’s why the cash officers room is highly confidential and no outsider will
be allowed to enter in the room. Teller is mainly concerned with cash transactions such as
cash receipts, cash payments, cash transfer, cash balancing as well as other cash
management issues, core responsibilities of teller are:
1. Handling cash transactions as cash receipts, payments and transfer through Cheque,
pay order, demand draft and deposit slip.
2. Ensure all the regulatory guidelines while making receipts or payments of cash.

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 3. Join custodian of cash vault (safe) keys with operation manager at branch.
4. Responsible for cancelation of Cheque and other instruments on customer request or
on any other reason.
5. Maintain cash book, vault cash and gold safe registers and ensure all the entries of cash
transactions and cash in and out from safe will be recorded on time daily basis.
6. Responsible to accommodate all the transactions at the end of day and prepare cash
management statement.
7. Cash sorting responsibility, Teller will separate defective, soiled, re-issuable and fresh
currency notes, from which soiled and defected will be returned to SBP for exchange
and re-issuable will transacted.
8. Sorting of the currency at the day end is also managed by teller; all the currency
denominations have been separated and stuck in bundles.
9. Carefully check for tap, torn, written and religious comments on notes and do not
accept that type of currency otherwise only teller is responsible for that.

10. Teller is responsible to keep all the prevailing currency denominations issued by state
bank of Pakistan (SBP) in bank.

4. Customer Services Officer:

Customer services officer concerned with customer convenience and for processing all the
information and documentation related with account opening and loan processing, the
major responsibilities of CSO at Khushhali microfinance Bank Limited Ranipur branch
are:
1. Responsible to guide well to customers about products and services of the bank
2. Replying all the quarries of customers regarding accounts, advancing, documents
and procedures and provide all information what customer asked.
3. Responsible for account opening, completing and checking all the necessary
documents are filled, and input information into system.
4. Make sure the KYC is completely filled.
5. Scan the specimen signature card.
6. Requesting Cheque book and ATM card.

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7. Maintaining the accounts.
8. Responsible to calculate and maintain zakat deduction.
9. Printing letter of thanks.
10. Maintaining and handling Cheque book and ATMs and their registers.
11. Input and process loan application, opening loan account, preparing loan agreement,
repayment schedule and loan disbursement.
12. Maintaining records of the accounts, stationary, registers of Cheque.
13. Responsible for maintaining inward and outward clearing, inward and outward
mails.
14. Opening and maintaining term deposit accounts, handle calculation and payment of
markup on TDR.
5. Relationship Officer:
The Relationship officer covers the risk associated with the loan advancing by bank and
follow the guidelines issued by banks credit and risk department, The responsibilities of
verification officer are clear from its name as it verifies each and every document related
with advancing because at Khushali bank Ranipur LOs are mostly involved in loan
advancing, the core responsibilities of Relationship officer include:
Relationship officer is responsible to ensure completeness of loan documents and
assessing that each loan application is in compliance with credit policy and procedures and
other guidelines circulated time to time from head office.
1. Ensure to forward cases to credit and risk department on daily basis.
2. Ensure that the borrower’s verification as per applicable protocols is duly
defined.
3. To assess whether borrowers and guarantor know and understand important
loan terms, repayment amounts, due date of repayment and guarantee concept
and their obligation in case of non-payment.
4. To identify service quality lapses or breach of ethical/professional behavior
by sales team/LO.
5. Ensuring existence of borrower and guarantor and their businesses (economic
activity) through verification of home and business address etcetera.

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4.3 Complete Description of The Tasks Assigned during Internship:
During four weeks of my internship training different task were assigned to me after
providing sufficient insight about them, but there is no pre-specified list of task were given
to be completed but branch manager was responsible to place me with different officers in
the bank and during the session task assigned by them are mentioned below:

1. Filling Account opening documents:

This task is assigned to me in internship when I worked with customer services officer
Shafqat Abbas, my task is to ensure all the account opening documents such as; account
opening form, customer due diligence, signature cards and Cheque book request in series,
and fill the each requirement of forms with information provided by customers and dully
place bank stamps on the forms.
1. Filling LAF (Loan Application form): In this we are required to fulfill
customer loan application form by interacting with customer.
2. Collecting cheque and deposit slips at the cash counter:
after conducting complete session with cashier during 3rd week I am placed at
the cash counter because of microfinance bank few customers were there, for
depositing and receiving cash at the counter, my task is to collect the slip place
stamp and hand over to cashier for further process, and to receive the Cheque and
to match the signature with signature card of customer and in case of illiterate
person checking the photo of person for surety.
3. To assist the customer service officer for register maintenance:
The CSO was assigned with extra responsibilities of maintaining the different
registers of the bank as Cash In and Out register, Gold register, clearance register,
Cheque book issuance register, that’s why he assigned every day entries to be
entered in the respective registers.

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 5. REFLECTIVE JOURNAL ENTRIES:

5.1 First Week

I have joined the KBL Khushali bank limited Ranipur branch on Tuesday 20th august,
2019, at the very first day I was really nervous and hesitated but on 2nd day from
introduction I found some senior university fellows then I felt comfortable. After
introduction sir Mahtab (branch manager) asked MR. Shafqat Abbas (CSO) to position me
with himself. First few day he verbally told me how the thing are to be done.

My insight:

After the first week training of internship at the bank I have realized that how the professional life
goes on, and there is no hard and fast rules to be professional, the bank employees are working
informally in friendly environment, and dully follow code of conduct in their work tasks. Working
with customer service officer offer me new experience because he plays central role in the
bank operations, the way he is attentively check every single document is lesson for me
because he is responsible and accountable for every single error in daily transactions.

5.2 Second Week

As 2nd week started on Tuesday 27 August, during this week I worked with same CSO.
He taught me about the different customer request forms they issue and he is always trying
to ask question from me from previous work and I observed he is most conscious and
responsible person and work in a sequential way. First I filled and stamped different forms.
I was very conscious to fill the forms, so I always keep a rough page with myself. And I
have noted all the activities performed during internship.

5.3 Third Week

Third week starts from 3rd Sep and in this week sir Shafqat Abbas taught me how to fill
account opening form for customer and place stamps on it, it was quite easy work just I
have to check the information from CNIC and enter into the form, then he assigned me few
forms to fill when he get satisfied from my work it’s become my routine work to fill the
various account opening documents and place stamps on them this will continue till the
end of internship, branch manager was very satisfied with our work.

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5.4 Fourth Week
Fourth and the last week start from 11th Sep after 9th and 10th Muharam-ul-haram. In this
week I worked with operations manager sir Khadim Husain his work is to supervise all
the transactions conducted during the day as well as on the system and responsible for the
security of the operations at bank and sir Imran (relationship manager) his work is to check
the eligibility of applicants according to bank criteria and to complete target decided by
management. . I really enjoyed this week and I did not want to leave this bank but my
study was still in progress.

My insight:

Working with operation manager offer me new experience because operation manager play
central role in the bank operations, the way he is attentively check every single document
is lesson for me because he is responsible and accountable for every single error in daily
transactions.

REFLECTIVE JOURNAL ENTRIES:

1. Introduction
Week 01 2. Introduction of each department Indoor work
3. Register maintenance
4. Clearing process
1. How to fill AOF (Account opening
Week 02
form).
2. Requirements of document to fulfill
AOF Account opening form. Indoor work
3. Types of Account (Individual
account, business account etc.).
4. Dormant Account and Inactive
Account.

1. Account Opening form and get

Week 03 Indoor work
practically work daily.

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 2. `How to fill CDR, TDC, Cheque,
deposit slim etc.
3. Recording document procedure for
audit purpose.
4. Authorization of each and every
document.

1. Filling loan application form

Week 04 Indoor work
2. ATM Request form.
3. Cheque issuance process.

GANT Chart
Activities performed during internship
Activity Week 01 Week 02 Week 03 Week 04

Introduction

Introduction of each
department

AOF

CDS and insurance

form
Make entries(send
and receive parcels)

5.5 Overall Observation in My Internship Program:

I observed in Khushhali bank Ranipur branch, there is no discrimination among employees
and they work in friendly environment and they worked in collaborate way. Branch
Manager (Sir Mahtab Ali) equally treats with all employees and all employees are happy
with their supervisor because he is not so strict and treat his employees as a colleague and

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friend. In Khushhali bank Ranipur branch I saw there is strict rule of dressing to wear
executive dress with tie and employees always used to follow this rule strictly.

From initial day to last day, operations manager sir Khadim Husain trained me. He is very
hard working and work in timely manner. He almost gave us all knowledge about KMBL
and about employee’s work that means she gave us introduction of all employees and their
work and responsibilities. During My internship I gained a lot from Operation manager Sir
Khadim Husain who really nice person with good attitude and he has more experience and
all the time he try to give us knowledge that is helpful for us in practical life as well as
working life. . He is so quiet person but having more KMBL experience he also used to
give knowledge about KMBL. I remembered CSO (Customer Service Officer) Sir Shafqat
Abbas he is very kind and religious person and always makes himself happy and also
others. He always gave me knowledge about his work. His work mostly to talk with
customer and I observed that he talk with customer politely. Others employees are busy all
the time in their work, they also gave us more knowledge about their work.

I observed that employees have more work from 9 am to 6 pm they worked but their salaries
are just enough and they not got any incentives and allowance those others commercial
banks provide to their employees. According to me there should be the increment in their
salaries and they should rewarded incentives and allowances to motivate an employee,
that’s why there is high turnover in KMBL Ranipur Branch.

Where people, means chance of conflict, in every organization there is conflict. I also
observed conflict between lower staff due to delay in work because work is integrated each
other. But I also observed that they sort out conflict immediately by discussion with each
other.

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 6. WORK SAMPLES:

I was very conscious to fill the forms, so I always keep a rough page with myself. And I
have noted all the activities performed during internship.

7. CRITICAL ANALYSIS

This 4 weeks internship offers me an incredible opportunity to gain real world experience
in banking sector especially in the field of Microfinance; it is really a great insight as a
student of finance to look at the actual position and operations of Microfinance bank in our
region (Sindh) by completing internship in KMBL (Khushali Microfinance Bank Limited
Khairpur branch).
During my this internship in KMBL (Khushali Microfinance Bank Limited) Ranipur
branch a lot of internal information about Microfinance banks come in to my knowledge
which I could never be able to collect otherwise, the first thing I realized that KMBL
currently running with growing setup and have many operating branches throughout the
country, and these situated in every city specially in sindh the branches of KMBL are
located in the center of cities, such as Ranipur branch in which I have completed the

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internship is located in the city and the customers are mostly coming from villages which
are distant from city so in my point of view this can be the cause threat for KBML Ranipur
branch.
Second thing I observed that KBML (Khushali Microfinance Bank Limited) Ranipur
branch has poor advertisement and promotional activities that’s why very few people have
knowledge about the bank, and acquisition of customers usually done through the
relationship manager and loan officers, who daily visit different areas and convince people
to be the customers of Bank. Even I don’t know that this bank exist before this internship
offered by our department.
The branch of KMBL (Khushali Microfinance Bank Limited) at district Ranipur (Sindh)
at which I had completed my internship is a small operating branch comprises on one single
office where all employees assigned separate desks for work, but the branch is actively
contributing to open the opportunities for the local inhabitants with great commitment and
hard work, and its service quality is excellent because of its diligent staff members who are
very committed and professionally skilled. Loan cases and account opening procedures
completed in just one day and Gold loans are processed within two hours, which will
increase the service quality as well as credibility of bank and other services such as cash
deposits and remittances also take less time to complete this is the best and competitive
part of the Bank, more than anything I learnt a lot apart from banking it has been great
experience for me to work in professional environment at Bank.
KMBL (Khushali Microfinance Bank Limited) Ranipur branch where I completed my
internship, there is very limited services given by bank there is no any telephone banking,
branchless banking and mobile banking facility, they just only focusing on their deposits
and loans.
They should have to introduce telephone banking, branchless banking and mobile banking
facility to increase profitability

There is Limited number of ATM booth available in few branches. Khushhali

Microfinance Bank limited (KMBL) Ranipur branch has no ATM booth they give ATM
facility by issuing UBL ATM card. They are going to start their own ATM booth in
Ranipur branch within 3 months to facilitate customers.

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I observed that employees have more work from 9 am to 6 pm they worked but their salaries
are just enough and they not got any incentives and allowance those others commercial
banks provide to their employees. According to me there should be the increment in their
salaries and they should rewarded incentives and allowances to motivate an employee,
that’s why there is high turnover in KMBL Ranipur Branch.

8. SWOT ANALYSIS OF KBL:

SWOT analysis is a tool for auditing an organization and its environment. It is the first
stage of planning and helps marketers to focus on key issues. SWOT stands for strengths,
weaknesses, opportunities and threats. Strengths and weaknesses are internal factors.
Opportunities and threats are external factors. The SWOT analysis heading provide a
good framework for reviewing strategy, position and direction of a company or business
proposition or any other idea.

 S=Strengths (Positive + Internal)

 W= Weaknesses (Negative+ Internal)
 O= Opportunities (Positive + External)
 T= Threats (Negative+ External)

SWOT analysis of Khushhali Bank Limited is given below:

SWOT ANALYSIS:

• STRENGTH • WEAKNESS

• According to KMBL annual • They not give telephone banking,

report 2015 its total assets is
16,692 million, liabilities Rs;
13,406 million and its total capital
is Rs; 3286 million.
• They have a very competent and
experienced top management and
they follow formal procedure of
recruitment on merit basis.
branchless and mobile banking
facility, it is one of biggest
weakness I found in KMBL, so
they should have to introduce very
soon.
• They have very effective
management but I noticed there,
High turnover of employees

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• They are currently operating their because of low salary packages and
business in Pakistan 136 branches. incentives.
• They have skilled employees. • They have very effective
management but I noticed there,
High turnover of employees
because of low salary packages and
incentives.

• OPPORTUNITY • THREATS

• They not give telephone banking, • It is threat for microfinance banks

branchless and mobile banking
facility, it is one of biggest
weakness I found in KBL, so they
should have to introduce very
soon.
• There is Limited number of ATM
booth available in few branches.
Khushhali Bank limited (KMBL)
Ranipur branch has no ATM
booth they give ATM facility by
issuing UBL ATM card. They just
thinking to start their own ATM
booth in Ranipur branch to
facilitate customers.
including KMBL to Increase
competition in the banking sector.
• Many multinational banks operate
their activities in the country.
• Khushhali Microfinance Bank
limited (KMBL) has threat because
many high depositors and A/C
holder trust to multinational bank
rather than Microfinance bank.
• Many banks offers same services
so it is also threat to compete with
others.

9. CONCLUSION:

1. Khushhali microfinance banks has created a unique environment, friendly

environment of interaction has also increased their skills and knowledge. I
have never ever seen like this in another banks.

2. Khushhali has some technological weak points one of them is mobile

banking that may be its competitive disadvantage.
3. There is limited approach to reach the customers, as competition has
increased number of banks available in market.
4. One thing that I have realized during the internship that there was a high
turnover rate that may affect the organization’s operations as well as profit
too because it is costly to hire and training new employees.

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5. Khushhali providing number of the products to meet customer need as it
has competitive advantages.

6. Khushhali bank possess the quality of strong relationship management,

they treat every customer as a guest and they also offer refreshment to
their customers. There is a skilled employees and managers who know
how to build good relationship.

7. It is a weak point of khushhali microfinance bank that it has not still own
ATM booths to facilitate their customers.

8. It is necessary to make innovation and creativity in products and services

to compete in such environment. Same products with same features over
the long time may cause the profitability.

10. RECOMMENDATIONS:

2. In such competitive environment KMBL still not introduced mobile

banking service they should implement.
3. Introducing new marketing strategy to attract more clients, this will helps
to attracts customers. They must have to more focus on advertisement to
introduce new and existing products innovatively. They should have to give
some extra benefits to their loyal customers to increase profitability and can
make new customer.
4. For motivation of employees, Attractive incentive packages should give to
low level management and officers; this will help to increase their capability
of doing work. They must give remuneration, incentives and other benefits
to their employees to motivate them for accepting new challenges in the
market.

5. KBL should introduce new products to make their customers more

attractive by increasing loan amount limits from micro loans to macro loans.
6. Effective training is very much essential for the relationship manager and
loan officers so that they increase the loans and can easily deal with their
valuable customers.

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7. They should have increased the number of ATM booths to facilitate
customers, because where I completed my internship they don’t have any
ATM booth they have ATM booth in just big cities like Karachi, Islamabad
and Lahore etc
8. The management should formulate innovative strategies and policies for the
betterment of product and service quality of the bank year after year.

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 11. REFERENCES:

1. Introduction of KBL, retrieved from

https://www.khushhalibank.com.pk/ s(august20-2019).
2. Vision, mission & values, retrieved from,
https://www.khushhalibank.com.pk/(august 23, 2019).
3. Objectives of KBL, retrieved from
https://www.khushhalibank.com.pk/(august 24, 2019).
4. Business overview retrieved from Annual report of KBL 20119.
5. Branches retrieved from https://www.khushhalibank.com.pk (august 28,
2019).
6. Board members, board of directors, retrieved from,
https://www.khushhalibank.com.pk/(septomber02, 2019).
7. Products and services of the bank, other products retrieved
fromhttps://www.khushhalibank.com.pk/(sep04, 2019).
8. Description of activities performed by each member/officer received
from personal discussion during internship.

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