The liquidity ratios of NBP showed an improvement in 2009.

The ratio of Earning Assets to

Assets depicts a stable trend on average from 2004 to 2009. In 2009, the ratio of Earning
Assets to Assets increased by 1.35% over last year. The 11.89% increase in average earning
assets was greatly offset by a corresponding 11.52% increase in average assets

p/e 09 price to earnings ratio fell by 64.75%

     2004     2005     2006     2007     2008     2009
 
ROA                                        1.21%    2.25%    2.81%    2.72%    1.96%   2.07%
ROE                                       16.78%   20.82%   21.58%   19.20%   14.13%  16.41%
ROD                                        1.44%    2.74%    3.53%    3.48%    2.54%   2.70%
              2004     2005     2006     2007     2008     2009
 
Price to Earnings                          6.48     7.04    12.05    10.77    12.17     4.29
Market Value to Book Value                 1.09     1.47     2.26     2.07     1.72     0.70
Average Share Price for the Year          67.91   126.18   251.63   251.46   174.76    72.60
            
  2004     2005     2006     2007     2008     2009
 Equity to Assets                           7.22%   10.79%   13.01%   14.19%   13.85%  12.60%
Equity to Deposits                         8.57%   13.14%   16.34%   18.13%   17.98%  16.43%
Earning Assets to Deposits                 0.86     0.89     0.95     0.96     0.96     0.97
Debt to Equity                            12.85     8.27     6.69     6.05     6.22     6.94
Debt to Assets                             0.93     0.89     0.87     0.86     0.86     0.87
Deposit times Capital                     11.66     7.61     6.12     5.52     5.56     6.09
Earning Assets to Assets                   0.72     0.73     0.76     0.75     0.74     0.75
Advance to Deposit                         0.44     0.53     0.61     0.60     0.62     0.66
          2004     2005     2006     2007     2008     2009
 
Yield on Earning Assets                    5.68%    8.19%    9.51%    9.61%   10.38%  11.87%
Cost of Funding Earning Assets             1.78%    2.51%    2.96%    3.22%    4.07%   6.01%
ZTBL ratios
D to e 0.29 0.20 .18
Internship Report
ZARAI TARAQIATI BANK LIMIT

D e b t t o E
Debt to Equity Ratio0.34
0.29
0.20
0.18
The debt to equity ratio of the ZTBL is decreasing since last years as in 2006 D/E ratio is was
0.34 and in 2009 it is 0.18. The reason is that the company is mainly financed by equity, which
is
evident from low Debt/Equity ratio. The debt is being paid over the period of time. Hence the
company apparently not properly utilizes this source of finance.

Total Debt to Total

Asset Ratio
0.17
0.17
0.13
0.10
The trend in above given table shows that the Total Debt to Total Asset Ratio decreases
continuously, as in 2006 it was 0.17 and in 2009 it is 0.10. The reason is that the company is
equity based and low financial leverage, accordingly there is very low Debt/Total assets ratio

Ratio
2006
2007
2008
2009
Interest
Coverage
Ratio
10.16
13.69
36.7
65.42
The interest coverage ratio of ZTBL increases as we move from 2006 to 2009. The company
has
very high interest coverage ratio. This is mainly due to low debts and increase in the profits
over
the years. It is evident from the previous five years data.
0
10
20
30
40
50
60
70
2006
2007
2008
2009
Interst Coverage Rations

RO A
0.13
0.15
0.18
0.20
The ROA of ZTBL in 2006 is 0.13 and in 2009 is 0.20, which increases as we move from
2006
to 2009. The return on Assets ratio has increased over the period of time, which indicates that
assets are effectively managed and utilized.We saw a trend of 2 to 4 percent increase in each
year.
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
0.18
0.2
2006
2007
2008
2009
ROA

Ratio
2006
2007
2008
2009
Earning per Share
2.61
3.56
4.53
5.72
The Earning per Share of ZTBL increased in 2006, which is 2.61 and in 2009 it is 5.72. As a
result of proper utilization of resources and decrease in costs, the net profit of the company has
been increased over the years. The second reason is that the company enhances its infrastructure
at a low cost. All these arrangements results in increase of earning per share

Ratio
2006
2007
2008
2009
Payout Ratio
0.86
0.67
0.77
0.87
The Pay out Ratio of ZTBL in 2006 is 0.86 and in 2009 it is 0.87. The dividend payout ratio has
increased tremendously. This shows that less percentage of funds is re-invested during the year.
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
2006
2007
2008
2009
Payout Ratio
The company is being operated in highly technological area should make comprehensive
planning for sustainability in post deregulation era of interest sector in Pakistan.If we observe
the recent year trend, all the described items on top have a positive sign showing future growth
and compact current position. If we look at profit after tax we see that it improves significantly
over the years due to reduction in cost and increase in assets. This is a good sign for the
organization to expand the business. The organization also expanded its Assets significantly
showing the worth of the organization. Interest coverage ratio of the organization is increased
due to reduction in debt to equity ratio. Debt to equity ratio depict that company is more equity
financed and financial charges are reduced. However in my opinion company should utilize
Liquidity ratios:
Liquidity reflects the ability of company to meet its short term obligations using assets that are
most readily converted into the cash. Assets that may be converted into cash in a short period
of
time are referred as liquid assets that are listed in financial assets as current assets. Current
assets
are often referred as a working capital because these assets represent resources needed for the
day to day operations of the company’s long term, capital investments. Current assets are used
to
satisfy short term obligations. The amount by which current assets exceed current liabilities is
referred as the net working capital.
Chapter no 4
Conclusion and Recommendations
Recommendations
ZTBL should improve the Management system.
They should be employee and customer oriented.
They have to introduce the dress coat into the organization.
Loaning procedure should be easier and convenient to the customers and easy processing
system.
They should adopt the new agriculture technology for the high level production to increase the
GDP level of the country.
ZTBL has to play vital role for introducing new energies to overcome the problems of the fuel
and bio gas.
Political involvement should be eliminated so that they can take good decision and actions for
the better disbursement.
Marketing department should play vital rol for introducing new products.
They should also play role for advertise their products and features and functions of the
products.
ZTBL Head Office has to update the annual reports and manuals annually.
They should hire the employee on the merit basis.
Their employees have to knowledge about their organization and about its department where
they are working.
Employees should be qualified and productive

ZTBl has to introduce again for Project Financing scheme. Because the scheme was successful
before but due to the some hurdles it was closed. But it really highly benefited the whole
country.
The bank’s logo and its color should be changed.
Fresh and energetic graduates should be select for the recruitment on the merit base.
Bank should also be male and female oriented for the better performance of the organization.
ZTBL has to started Online banking system so that their customer will get benefit from their
services and number customer will increase to their organization.
ZTBL has to introduce ATM card service to facilitate their customers
ZTBL has to focus on commercial banking also
Introduction of New Branches to expand their business.
Introduction of DMS to overall branches.
CONSLUSION:
During my internship here in ZTBL, I found that ZTBL has high level of professionalism and
challenging environment and its culture is friendly. ZTBL seems Top Agriculture Financing in
the future as indicated by the financial indicators.It keeps energy and potential to serve the
deserving clients in all over the world. The bank has set itself a vision to be a world-class
bank.
This can only be achieved with dedication and a passion to excel in every activity. I really
admire ZTBL’s policy makers for designing investor friendly and customer oriented products.
The bank is really working well and contributing a valuable part in the economy of Pakistan
through tax, giving loan to government, giving loans to the businesses for their survival and
expansion, generating a well skilled human resource and employment etc. During this
internship,
I really learned Professionalism, leadership skills, communication skills, problem solving
skills,
situation analysis skills and how to become a good mentor etc