Corporate Objectives - Weebly



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Department of commerce

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Being aware of the importance of practical training, the Department of Commerce (IUB) requires every (Hons) MS-IT student to go through training for practical purpose as trainee.

The internship program is to broaden the vision of practical experiences with theoretical knowledge as it increases one’s capabilities to handle problems at various stages and the ability of decision.

I tried my best to collect the valuable information and its relevant facts.

This report is the result of my internship with Bank (ztbl).

SHAHID SHARIF

(Hons) MS-IT

Session: 2006-10

Who always prayed for my success and their love and affection have always been a source of inspiration for me to difficulties, this taught me a lot about life.

Who always provide us knowledge and guidance that becomes a successful way in our life,

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Up and above everything, I am thankful to ALMIGHTY ALLAH, the most Beneficent and merciful, and his Holy Prophet (Peace be upon him) who is forever a true torch of guidance for whole humanity. I am greatly obliged to “ALLAH” by whom grace I have been able to complete this report successfully.

I also offer my thanks to honorable sir Prof. SAJID AMINfor providing me a chance to work in such a prestigious organization.

I also offer my thanks to respected teacher Mr. RANA ADEEL for his valuable guidance and contribution in making my report meaningful and useful.

|S. No. |Title |Page No. |

|Chapter – 1 | |

| |INTRODUCTION OF THE ORGNIZATION |

|1.1 |Introduction |6 |

|1.2 |History |10 |

|Chapter – 2 | |

| |MARKETING MIX |12 |

|2.1 |ZTBL Products |12 |

|2.2 |Loans |19 |

|2.3 |Recovery Schedule |23 |

| | |

|Chapter – 3 | |

|3.1 |Departments |27 |

|Chapter – 4 | |

|4.1 |Analysis |32 |

|4.2 |Financial Analysis |32 |

|4.3.1 |Ratio Analysis |38 |

|4.3.2 |SWOT Analysis |44 |

|4.3.3 |Pest Analysis |48 |

| | | |

| | |

|Chapter – 5 | |

|5.1 |HR Activities |50 |

|Chapter – 6 | |

|6.1 |Work don by me During Internship |51 |

|6.1 |Conclusion |56 |

| |Annexure |57 |

CHAPTER # 1

INTRODUCTION TO ORGNIZATION.

Corporate vision

Dedicated to serve the needs of the farming community by delivering financial products and technical service on a combative and suitable basis in a concernment efficient and professional manner leading to success of the bank and the farmers.

Corporate Mission

To play effective role in the promotion of economic growth by enhancing the availability of credit to the agriculture sector through reliable access to customable financing special programs technical assistance and other products and services and to promote career development opportunity for increasing professionalism and technical prophecies of employees.

[pic]Corporate Objectives [pic]

Develop and operate as a financially and operationally sustainable R.F.I of the country.

Assist rural community, particularly the small farmers, in raising their productivity and income levels through timely delivery of credit, advisory and ancillary services.

Build ZTBL's image as a proactive, client friendly, financially & operationally sustainable with indigenous product deployment.

Establish and provide backward and forward linkages to strengthen agri. value added commodity chains.

Engage in public - private and wholesale - retail partnership to deepen outreach and reduce operating cost.

To function as a rural commercial bank to mobilize rural capital formation and to commercialize the agro. sector by delivering the true value of credit to the client. Provide a wide range of risk insurance products to its clients.

Open up it venues of operation to Domestic & International Banking Industry to avail comparative advantage

ORGANIZATIONAL STRUCTURE

BOARD OF DIRECTORS

|Syed Qamar-Uz-Zaman Shah |Mr. Muhammad Zaka Ashraf |

|Chairman Board |President/ CEO |

|Mr. Yawar Zia |Mr. Qamar Zaman Chaudhry |

|Director |Director |

|Mr. Muhammad Iftikhar Khan Mohmand |Mr. Tauqir Ahmad Faiq |

|Director |Director |

|Dr. Khalid Ahmad Khokhar |Mr. Imam Bux Sheikh |

|Director |Director |

|Mr. Muazam Ali | |

|Company Secretary | |

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[pic] HISTORY OF ZTBL

Zarai Taraqiati Bank Limited (ZTBL) erstwhile Agricultural Development Bank of Pakistan (ADBP) is the premier financial institution geared towards the development of agriculture sector through provision of financial services and technical know how. The restructuring of former ADBP is being carried out with the aim to uplift the agriculture and rural sector by raising farm productivity, streamlining the institutional credit and increasing income generating capacity of the farming community. ZTBL was incorporated as a Public Limited Company on 14th December, 2002 through repeal of ADB Ordinance of 1961.

The new corporate structure redefines the bank's status as a public limited company registered under companies Ordinance'1984 with an independent Board of Directors which aims at ensuring good governance, autonomy, delivering high quality.

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ZTBL is a key R.F.I of Pakistan providing affordable, rural and agriculture financial/non-financial services to the rural Pakistan , comprising 68 % of the total population. The Bank through a country-wide network of 341 branches is serving around half a million clients annually and over one million accumulated account holders with the average loan size of around Rs.89,000 serving 65%, 31% & 4 % of subsistence, economic and large growers respectively.

The total assets of the Bank stand at Rs.84 billion with authorized capital of Rs.25 billion as of 31.12.2005, with a nation-wide working strength comprises 5500 employees. The share of ZTBL in total national institutional agricultural credit remains around 35%.

ZTBL was incorporated as a Public Limited Company on 14th December, 2002 through repeal of formal Agricultural Development Bank of Pakistan Ordinance of 1961. Thereby transforming the bank as a corporate entity to serve as a R. F.I

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CHAPTER # 2

MARKETING MIX.

ZTBL Products

LOCKERS FACILITY

Zarai Taraqiati Bank Ltd. apart from its core functional activity marked with country based agri-business, has started to serve its valued customers by offering lockers facility. Initially, this facility is being offered at following 11 branches.

|S.No |Name of Branch |Phone No. |Address |

| |Islamabad Branch |051-9252022 |Block-7/F, ZTBL Officer Colony G-7/2, Islamabad |

|1 | | | |

|2 |Main Branch Lahore |042-7353380 |47-C, Sharah-e-Quaid-e-Azam, Lahore |

|3 |Peshawar Branch |091-2262279 |Chughalpura, GT Road Reshawar |

|4 |Gujranwala Branch |055-9200206 |D.C Road, Gujranwala |

|5 |Faisalabad Branch |041-9210008 |Opposite Punjab Medical College, Faisalabad |

|6 |Multan Branch |061-9200509 |61-A Abdali Road, Multan |

|7 |Sahiwal Branch |040-9200424 |915-D Block Farid Town Sahiwal |

|8 |Sargodha Branch |048-9230491 |Katchery Road, Sargodha |

|9 |Khan Pur Branch |068-5573079 |Model Town- Near Paradise Cinema Khan Pur |

|10 |Shafi Court Branch |021-9206006 |Shafi Court Building Mereweather Road Karachi South |

|11 |Main Branch Gulshan-e-Johar |021-4613618 |St 4/3-A Building No.1 KDA Scheme-36 Gulistan- i -Jauhar|

| | | |Karachi |

Following are the approved rates for rent of lockers and key deposits against which lockers will be allocated:

|Type |Specification |Rent Per Annum |Rent after grace period |Key Deposit |

|Small |6-1/2"x4-1/2"x23" |Rs.1,200/- |Rs.1,500/- |Rs. 5,000/- |

|Medium |13-1/2"x4-1/2"x23" |Rs.1,800/- |Rs.2,250/- |Rs. 10,000/- |

|Large |13-1/2"x8-1/2"x23" |Rs.2,500/- |Rs.3,125/- |Rs. 15,000/ |

Credit Limits

|Overall Credit Limit Per Borrower |Rs.1.000 Million |

| |  |

|Sada Bahar Scheme under one window operation or otherwise |Rs.0.500 Million |

| |  |

|PER ACRE CREDIT LIMITS |  |

|Major Crops: |

|Wheat |9,600 |

|Potato |18,200 |

|Pear |1,500 |

|Outside Pass Book System |70% |

|Under Alienability Certificate |66% |

|Commercial/Industrial Land under Pass Book |80% |

|Outside Passbook System | |

|Urban Residential/Commercial Plots in all localities outside Pass Book |75% |

|Alienability Certificate |66% |

|Residential/Commercial Buildings |70% |

|Lease hold rights of a leased land of CDA/KDA with 99 years lease |70% |

Agricultural Land

|Under Pass Book System |80% |

|Outside Pass Book System |70% |

|Under Alienability Certificate |66% |

|Commercial/Industrial Land under Pass Book |80% |

|Outside Passbook System | |

|Urban Residential/Commercial Plots in all localities outside Pass Book |75% |

|Alienability Certificate |66% |

|Residential/Commercial Buildings |70% |

|Lease hold rights of a leased land of CDA/KDA with 99 years lease |70% |

Moveable Property

|Unconditional Bank guarantee from scheduled Banks |Upto maximum amount of an un-conditional Bank guarantee after |

| |keeping sufficient margin for un-paid mark-up, cost, charges and |

| |expenses. |

|Guarantee issued by Central or Provincial Government |Full amount of loan plus return and other charges. |

|Government securities |85% of face value or market value whichever is less. |

|Defense Savings & FEB Certificates |75% |

|Fix Term Deposits Receipts |85% of face value. |

|NIT Units |80% of the face value or market value whichever is less. |

|Life Insurance policies |85% of surrender value |

|Pledge of Potatoes/Seed Potatoes price or market value which |Upto 75% of Govt. support |

|ever is less | |

Personal Guarantee

Against a bond with two sureties under General Credit and one surety in Special Schemes upto Rs.25,000/-

CHAPTER # 3.

DEPARTMENTS.

FIELD OF ACTIVITIES/ DEPARTMENTS OF BANK

The main departments of a bank are as under:

Budget & Funds Management department

Central Accounts Department

Regulatory Reporting Department.

H R Operations Department

Training & Development Department

Performance Management Department

Policy & Regulatory Department

IT Operations Department

IT System Development Department

10.IT-User Support Department

11. IT Net work Department 12.IT-Security Department

13.Corporate Audit Department

Field Audit Department

Agricultural Technology Department

Credit Policy Department

Branch Operations Department

Business Development & Marketing Department

Credit Operations Department

Risk Management Department

Recovery Department

SAM Department

Research & Planning Department

Data Bank

General Services Department

Medical Services Department.

DEPOSIT DEPARTMENT.

The function of deposit department is to collect cash from the customers and to deposit it into the accounts, maintained by them. Their classification is based on duration and purpose for which the account is maintained.

The following information is required to be furnished

Name

Full address

Specimen signature

Introductory refrences

Declaration that he will follow them

Different Schemes Of Deposits Of The Bank.

01. Business Deposit Accounts

Current Account

PLS Saving Account

Sada Bahar Scheme

05. BBA Accounts

06. ZTBL Accounts ( ZBA)

a. Deposit Account 30-days & above.

b. PLS Terms 03-months

c. PLS terms 06-months.

d. PLS terms 12-months.

e. PLS Terms 24-months.

f. PLS Terms 36-Months

g. PLS Terms 48-months

h. PLS Terms 60-months

i. ZTDC for three years.

OVERALL CREDIT DISBURSEMENT.

The bank disbursed an overall amount of Rs.55,912 million during the year 2009 as compared to Rs.52,521 million disbursed in the year 2008 representing an increase of 6.5% . The number of borrowers served by the bank increased to 475,756 during the year 2009 from 443,874 in 2008.

The impact of quantum increase in ZTBL credit is visible from harvest of bumper Wheat and Sugarcane crops during the period under review. The bank managed the funds availability from its own resources through boosting recovery and recycling the recovery proceeds for increased disbursements.

RECOVERY OPERATIONS.

During the year 2009, ZTBL attained an all time record recovery of Bank's dues with the untiring efforts, hard work and devoted involvement of its staff, it recovered Rs.58,080 million as compared to Rs.49,156 million during the previous year showing an increase of Rs.8,294 million and growth of 18.2%. The bank also recovered an amount of Rs.5,078 million out of SAM portfolio during the year 2009 compared to Rs.2858 million recovered during the year 2006, thus making more funds available for farm credit.

DEPOSIT MOBILIZATION.

The bank raised deposit of Rs.4,323 million as on 31-12-2009 compared to Rs.2,882 million as on 31-12-2008, thus adding to its financial viability for providing extended banking services for the customers particularly rural clientele.

NEW INITIATIVES.

To strengthen the bank's operational viability and to accelerate the pace of business of the bank on commercial lines, the bank's management has taken major initiatives to introduce diversified schemes. Two deposit products Zarai Bachat Account and Zarai Term Deposit Schemes were launched, having better annualized rate of return and customized features.

INTERNAL AUDIT.

In accordance with the provisions of Code of Corporate Governance, the Internal Audit Division with functional reporting to the Audit Committee of Board of Directors is functioning in ZTBL. Internal Audit Division consists^qMhree Departments aJJHead Office and six Audit Zones inijhe filed. The Audit Zones in the filed are working with 25 Audit^ Teams. The Audit Teams Conducted audit of 100 % activities transacted at branches and SVP/lncharge of Audit Zone conducts the audit of Zonal Offices to safeguard bank's interest.

COMPLIANCE PROGRAMME.

Compliance Programme in ZTBL aims at ensuring compliance with the bank's instructions, SBP regulations, relevant provisions of local laws etc. with a view to minimize legal and regulatory risks. The compliance function has been strengthened to augment internal monitoring and control for improving the effectiveness of bank's policies and procedures.

HUMAN RESOURCE DEVELOPMENT.

The bank continued its efforts to upgrade its professional competence and management capabilities of officers and staff by arranging various operational and functional courses. During 2009, 20 courses were conducted and 563 officials were trained in Bank's Staff Colleges at Islamabad and Karachi.

NFORMATION TECHNOLOGY.

The bank continued to deploy the latest information and communication technology to enhance the quality, efficiency and speed of services to improve the operations. For data transmission from field to Head Office through telecommunication lines, ISO successfully deployed the Wide Area Network (WAN) between the Head Office and the 25 Zonal Offices around the country. WAN facility was also extended to two computer centres located at Gilgit and Chitral. This has reduce the delivery time of data from the Zonal Office to Head Office and a lot of improvement has been witnessed in meeting the various reporting deadlines of State Bank of Pakistan.

To enhance efficiency of inter-office communications, ISO successfully extended the e-mail facility at the Head Office as well as the Zonal Offices which has improved the quality and speed of communication between these offices.

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SO provided latest hardware including Personal Computers to all field offices across the country which has given impetus to the modernization and automation of bank's operation.

On the software front, a comprehensive branch-based Deposit Management System was developed under ORACLE that provides automation and control over the management and operations of the deposit products of the bank. Other softwares developed include Nonperforming Loan System in the field, Software for White Revolution Scheme, SAM Reporting System, Payroll Management System, NADRA'S CNIC Verification System, CPF/GPF System for Accounts, Performance Appraisal Module of HR, etc.

The bank has also launched evening banking facilities at designated branches in the year 2008 in order to survive in the competitive financial services market. ZTBL also plans to enter into strategic partnership with an organization of international repute on fund remittances to facilitate its clients as well as general public.

CHAPTER # 4. ANALYSIS.

|Profit & Loss Vertical Analysis |

| |2009 |2008 |2007 |2006 |2005 |

| | | | | | |

|Mark-up/return/interest earned |100% |100% |100% |100% |100% |

|Mark-up/return/interest expensed |41% |49% |47% |6% |7% |

|Net mark-up/interest income |59% |51% |53% |94% |93% |

|Provision against non-performing loans and advances |23% |44% |29% |69% |65% |

|Provision/(reversal) for diminution in the value of investment |0% |0% |0% |0% |0% |

|Write offs under Government relief packages |0% |8% |25% |0% |0% |

|Bad debts written off directly |- |- |- |- |- |

| |23% |52% |54% |69% |65% |

|Net mark-up/interest income after provisions |36% |-1% |-1% |25% |29% |

|NON MARK-UP/INTEREST INCOME | | | | | |

|Fee, commission and brokerage income |0% |0% |0% |0% |0% |

|Dividend income |0% |0% |0% |0% |0% |

|Other income |68% |81% |92% |12% |15% |

|Total non mark-up/interest income |68% |81% |92% |12% |15% |

| |104% |81% |91% |37% |44% |

| | | | | | |

|NON MARK-UP/INTEREST EXPENSES | | | | | |

|Administrative expenses |53% |54% |46% |38% |39% |

|Provision against other assets |4% |1% |34% |0% |0% |

|Provision for stolen fixed assets |0% |0% |0% |0% |0% |

|Other charges |0% |0% |0% |0% |0% |

|Total non mark-up/interest expenses |57% |55% |80% |39% |39% |

| |47% |26% |11% |-1% |4% |

|UNUSUAL ITEM |- |- |- |- |- |

| | | | | | |

|PROFIT BEFORE TAXATION |47% |26% |11% |-1% |4% |

|Taxation - Current |16% |9% |4% |1% |1% |

|- Prior years |0% |0% |0% |0% |0% |

|- Deferred |0% |2% |0% |0% |0% |

| |16% |11% |4% |1% |1% |

|PROFIT AFTER TAXATION |31% |15% |7% |-2% |4% |

|Un appropriated profit brought forward |22% |14% |12% |13% |12% |

|Profit available for appropriation |52% |29% |19% |11% |16% |

For Analysis purpose of ZTBL Markup/ Interest Earned is taken as base value. It is difficult to determine the actual cost of Markup/ Interest expense as ZTBL is government controlled Enterprise. Interest Rates offered by ZTBL are much lesser then rates offered by any other Bank. Due to these factors analysis show an abnormal behavior of Interest expense as 7% in 2005 and increased to 49% in 2008. Provision against non performing loans also shows an abnormal behavior. The possible reason for this behavior could be influence of Government over the Management of ZTBL. Analysis of written of Under Government Relief Package also support this argument. Other Income also shows major contribution in over all Profit & Loss Account. On Expenses Portion of ZTBL analysis shows normal behavior.

|Balance Sheet Vertical Analysis |

| |2009 |2008 |2007 |2006 |2005 |

| | | | | | |

|ASSETS | | | | | |

|Cash and balances with treasury banks |2% |2% |2% |2% |2% |

|Balances with other banks |16% |13% |9% |9% |11% |

|Lendings to financial institutions |0% |0% |0% |0% |0% |

|Investments - net |5% |8% |7% |16% |14% |

|Advances - net |68% |66% |72% |64% |65% |

|Operating fixed assets |1% |1% |1% |1% |1% |

|Deffered Tax Assets |0% |0% |0% |0% |0% |

|Other assets - net |8% |10% |10% |8% |8% |

| |100% |100% |100% |100% |100% |

| | | | | | |

|LIABILITIES | | | | | |

|Bills payable |1% |0% |0% |0% |0% |

|Borrowings |50% |55% |60% |62% |62% |

|Deposits and other accounts |5% |5% |3% |3% |2% |

|Sub-ordinated loans |3% |3% |4% |4% |4% |

|Liabilities against assets subject to finance |0% |0% |0% |0% |0% |

|lease | | | | | |

|Deferred tax liability |0% |0% |0% |0% |0% |

|Other liabilities |24% |20% |17% |15% |16% |

| |83% |84% |84% |84% |85% |

|NET ASSETS |17% |16% |16% |16% |16% |

| | | | | | |

|REPRESENTED BY | | | | | |

|Share capital |12% |13% |14% |14% |14% |

|Reserves |1% |1% |0% |0% |0% |

|Un appropriated profit |3% |2% |1% |1% |1% |

| |16% |15% |15% |16% |16% |

|Surplus on revaluation of assets - net of tax |0% |1% |0% |0% |0% |

| |17% |16% |16% |16% |16% |

| |2009 |2008 |2007 |2006 |

| | Comparative analysis Profit & Loss |

| | | | | |

|Mark-up/return/interest earned |21% |17% |-12% |-9% |

|Mark-up/return/interest expensed |2% |22% |615% |-20% |

|Net mark-up/interest income |38% |13% |-50% |-8% |

|Provision against non-performing loans and advances |-38% |75% |-63% |-3% |

|Provision/(reversal) for diminution in the value of |-285% |-107% |-1828% |-11% |

|investment | | | | |

|Write offs under Government relief packages |-  |-100%  |-62%  |-  |

|Bad debts written off directly | - | - | - |-  |

| |-47% |12% |-31% |-3% |

|Net mark-up/interest income after provisions |-7484% |-38% |-104% |-21% |

|NON MARK-UP/INTEREST INCOME | | | | |

| | | | | |

|Fee, commission and brokerage income |88% |-8% |-19% |5% |

|Dividend income |430% |-67% |0% |2% |

|Other income |1% |4% |566% |-26% |

|Total non mark-up/interest income |1% |4% |559% |-26% |

| |56% |4% |115% |-22% |

| | | | | |

|NON MARK-UP/INTEREST EXPENSES | | | | |

|Administrative expenses |20% |37% |6% |-11% |

|Provision against other assets |367% |-96% |15739% |-19% |

|Provision for stolen fixed assets |  |  |  |  |

|Other charges |-84% |72% |-10% |-5% |

|Total non mark-up/interest expenses |26% |-20% |83% |-11% |

| |119% |184% |-806% |-128% |

| | | | | |

|UNUSUAL ITEM |  |  |  |  |

| | | | | |

|PROFIT BEFORE TAXATION |122% |179% |-806% |-128% |

| | | | | |

|Taxation - Current |118% |193% |466% |-26% |

| - Prior years |52% |  |  |  |

| - Deferred |-112% |1080% |-1658% |-5% |

| |84% |234% |500% |-26% |

|PROFIT AFTER TAXATION |150% |150% |-423% |-147% |

|Un appropriated profit brought forward |83% |44% |-18% |-5% |

|Profit available for appropriation |117% |83% |53% |-38% |

Comparative Analysis shows year by year performance over the last year. In 2006 and 2007 over all lending of the ZTBL shows declining trend while afterwards jump has been seen on overall lending of ZTBL. Markup / Interest Expense was much higher on 2007 as compare to 2006 but after 2007 it shows an smooth increase as comparing to Increase in Lending.

]

| |2009 |2008 |2007 |2006 |

| | Comparative analysis Balance Sheet |

| | | | | |

|ASSETS | | | | |

|Cash and balances with treasury banks |-18% |62% |-18% |-9% |

|Balances with other banks |33% |55% |0% |-9% |

|Lendings to financial institutions | - | -| -| -|

|Investments - net |-34% |33% |-56% |-7% |

|Advances - net |14% |0% |16% |-9% |

|Operating fixed assets |32% |6% |18% |-9% |

|Deffered Tax Assets |0% |0% |-100% |-9% |

|Other assets - net |-10% |14% |26% |-9% |

| |10% |9% |3% |0% |

| | | | | |

|LIABILITIES | | | | |

|Bills payable |56% |42% |17% |11% |

|Borrowings |0% |0% |0% |0% |

|Deposits and other accounts |26% |50% |9% |43% |

|Sub-ordinated loans |0% |0% |0% |0% |

|Liabilities against assets subject to finance lease |0% |0% |0% |0% |

|Deferred tax liability |56% |1462% |0% |0% |

|Other liabilities |27% |35% |18% |-9% |

| |8% |9% |3% |-1% |

|NET ASSETS |16% |10% |4% |-1% |

| | | | | |

|REPRESENTED BY | | | | |

|Share capital |6% |0% |0% |0% |

|Reserves |92% |57% |22% |1% |

|Unappropriated profit |78% |83% |42% |-21% |

| |18% |8% |3% |-1% |

|Surplus on revaluation of assets - net of tax |-28% |89% |48% |5% |

| |16% |10% |4% |-1% |

RATIO ANALYSES

Advance to Deposit Ratio

|Years |2009 |2008 |2007 |2006 |2005 |

|Advance to Deposit Ratio |1289% |1419% |2134% |2003% |3148% |

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Advance to deposit Ratio measures the Advances as compare to Deposits held by Bank. Advance to deposit ratio by ZTBL is much higher which is a risk factor and could harm the bank liquidity position.

Cash to Deposit Ratio

| |2009 |2008 |2007 |2006 |2005 |

| | | | | | |

|Cash to Deposit Ratio |32% |49% |45% |60% |94% |

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Cash to deposit ration Measures the overall cash available by Bank against the deposits held by Bank. Average Cash to deposit Ratio is 60% which is very good.

Return on Equity

|Year |2009 |2008 |2007 |2006 |2005 |

| | | | | | |

|Return on Equity |24% |15% |8% |6% |7% |

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Return on Equity shows profits earned by the organization as percentage of equity invested. Return on Equity ranges 7% to 24% which is quit good.

Return on Assets

| |2009 |2008 |2007 |2006 |2005 |

| | | | | | |

|Return on Assets |16% |15% |15% |16% |16% |

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Return on Assets shows overall profits earned by the organization as the percentage of Total Assets maintained by the Entity. Return on Assets ranges from 15% to 16%.

Debt Equity Ratio

| |2009 |2008 |2007 |2006 |2005 |

| | | | | | |

|Debt Equity Ratio |303% |359% |387% |398% |392% |

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Debt Equity ratio shows the adequacy of capital structure of the organization. In Case of ZTBL it is quit high, which could be a risk factor.

Equity to Deposit Ratio

| |2009 |2008 |2007 |2006 |2005 |

| | | | | | |

|Equity to Deposit Ratio |311% |330% |459% |487% |706% |

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Equity to deposit ratio measures the equity invested as compare to total Deposits. Equity to deposit ratio ranges from 311% to 706%.

Investment to Total Assets

| |2009 |2008 |2007 |2006 |2005 |

| | | | | | |

|Investment to Total Assets |5% |8% |7% |16% |17% |

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Investment to total assets shows the Investments made by the Bank as compare to the Investments Made to Total Assets. Investment ratio is very low as compare to total investment.

Operating Profit Margin

| |2009 |2008 |2007 |2006 |2005 |

| | | | | | |

|Operating Profit Margin |59% |51% |53% |94% |93% |

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Operating Profit Margin shows operating profit after Operating Expenses. Average operating Profit Ratio is 65% which is very good.

Profitability Ratio

| |2009 |2008 |2007 |2006 |2005 |

| | | | | | |

|Profitability Ratio |31% |15% |7% |-2% |4% |

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Profitability ratio shows the overall Profitability of the Organization which shows sudden increases in 2009 of 16%.

SWOT ANALYSIS

During my internship period at ZTBL, Minchanabad Branch I performed SWOT analysis as under.

STRENGTHS:

ZTBL Minchanabad covers an area of 1372 Sq. km. Almost all the area is cultivable and fertile land for crop production. Well established M CO (Mobile Credit Officers) system is the main strength of the ZTBL as compared to its competitors. Among the field force of ZTBL Mobile Credit Officers has to play the pivotal role. MCO.s are Agriculture graduates, who not only provides credit to the farmer at its door step, but also provides technical know how for good crop production.

A MCO Usually controls a circle consisting of 20 to 25 villages. He remains in contact with the farmer from the sowing of crops to its harvesting. This close contact with farmer ensures close contact with customer.

In 2006, the total outstanding farm loans amounted to Rs68.39 billion of which Rs20.10 billion was NPL. In 2005, the total NPL was Rs23.42 billion out of total farm loans stock of Rs74.55 billion.

The Zarai Tarqiati Bank (ZTBL) is showing a gradual improvement in reducing NPLs ratio of farm loans to 22.7 per cent in 2008 from29.4 per cent in 2007 and 31.4 per cent in 2006. The government controlled ZTBL remains the single largest operator in farm lending that maintained a stock of Rs73.62 billion outstanding farm loans in 2008. Of this, Rs16.70 billion was NPL.

Weaknesses:

Branch is working with 5 Mobile Credit Officers. Branch contained 8019 loan cases of non- performing and performing loan cases. It means one MCO is dealing with on an average 1604 loan cases having portfolio of 155.101 millions. It is worth mentioning that such huge volume of portfolio and large numbers of borrowers is beyond the control of one MCO. It is the basic reason ofjow_out reach of agri- financing in Minchanabad 2.57% only.

MCOs circles may be bifurcate and numbers of MCOs be increased. Rate of markup on ZTBL loan is 9% with 1% Rebate for timely repayment of loan. This is a main weak area constraining the banks vision of commercially viable institution. This is despite the fact that effective lending rates on agri-finance are always higher as compared to corporate and commercial loans mainly due to "high administrative and transaction cost and high risk of default," as report of the State Bank given to all commercial banks reveals. Other commercial banks financing in the same sector are charging markup in the range of 16 to 22%. Rate of mark up of ZTBL is also lower than the prevailing double digit inflation rate; which is leading to decreasing net worth of the banks balance sheet in real terms.

Recovery proceeding to recover the bank dues has since been suspended due to political pressure. It may be restored to ensure the recovery of huge amount of default. Prudential regulations to classify the agri loan are not match with the income sources of agricultural community as per prevailing cropping pattern. It may be revised up to the extent of agri- loans depending upon the harvesting of cash crops.

OPPTURTUNITIES:

The Agriculture is the mainstay of country's economy where 66% of rural population getting livelihood from this sector and is the most important sector for employment and income generation. This sector accounts for21% of the GDP, 42% of employed labor force and 60% direct or indirect Exports. Last six years data as shown in the following table indicate that contribution of agri. sector in the country's economy has reduced from 24.1% to 20.9 %. Being backbone of the country's economy, agriculture sector needs to be developed and its contribution to GDP must also increase instead of decreasing.

The outreach of agricultural credit is limited to the extent of about two million borrowers as

against total farmer's population of 6.6 million. Majority of the country's farmers i.e. 84 percent comprises of small farmers and rely on informal sector credit at exorbitant rates to meet their agricultural credit requirements. One of the main reasons of the financial exclusion of these small farmers has been their inability to provide collateral to banks. It is expected that the problem of financial exclusion wil be mitigated with the introduction of group-based financing scheme for small farmers.

There is a need to adopt a forward-looking approach to expand the outreach for meeting credit needs of priority sectors of the economy including micro, small medium enterprise (SME), agriculture and rural housing sectors

For adequate access to agri credit, increasing agri financing institutions and branches of increase in number of Agri. Credit Officers, enhanced budget allocation, decrease in cost of credit especially for good repayment master, training of farmers though Vocational Institutions and field days, publicity through media, establishment of exclusive agri. T.V. Station, relaxation of maximum limit of one million for agri. credit, simplification of credit documentation and loan insurance are of utmost importance which may be given due weight age.

Development of farmers friendly product to meet with their on farm and off farm needs on their or steps may be considered e.g. agri. credit card, farm computerization, debt servicing loans, loan for marketing of agri. produce, running finance limit, loan for farm utility bills, loan for hiring of stores/ go downs, loan for construction of stores, cold stores/go downs for custom hiring and consumption loan for children education/marriage etc may go a long way in developing agriculture/rural sector.

THREATS:

Previously ZTBL was single largest source of supply of agri. Finance. Now realizing the potential in this sector, other commercials banks have stepped in and started financing in the agriculture sector. As a result, share of ZTBL in total institutional credit has declined to 41% in year 2008.

Rate of mark up is also posing threat to its survival on commercial lines. Mark up rate of ZTBL is very low i.e. 9% only, while SBP minimum markup rates have been raised up to 13.5%. Policies of ZTBL to fix the markup rates are being politicized. Bank is unable to meet the even operational cost with such very low rate of mark up. It is even lower than inflation rate of the country. Mostly branches of ZTBL are working in the rental buildings situated in far from commercial markets. These buildings are not designed as per seating requirements for staff and general public, visiting to branch.

Social:

Banks always helped people in improvement of living condition of poor people in various forms like giving loans to poor for starting business or directly providing them the instruments that could enhance their living conditions. Similarly UBL always tried to provide the needy people loans on soft terms and also helped to eradicate unemployment by providing job opportunities

Technology :

The Banking sector in Pakistan has experienced a rapid transformation. Just about a decade back this sector was limited to the Sarkari (read nationalized) and co-operative banks. Then came the multi-national banks, but these were confined to serving an elite few. One could regard the past as the 'medieval ages' in the banking industry, wherein every branch of the same bank acted as an independent information silo and multi-channel banking (ATMs, Net banking, Tele-banking, etc) was almost non-existent. Today banks have to look much beyond just providing a multi-channel service platform for its customers. There are other pressing issues that banks need to address in order to chalk-out a roadmap for the future. Here are the top three concerns in the mind of every bank's CEO. The customer is interested in how he/she can benefit from the bank and its products. That's why it becomes necessary for a bank to differentiate its products from the others. Some of the ways in which differentiation can be introduced are through specialization, new products, and increasing the value.

CHAPTER # 5.

HUMAN RESOURCE ACTIVITIES

The importance of manpower cannot be denied in any organization. In case of banks it is the most valuable asset, because the bank is very sensitive organization and to be in harmony with this sensitivity, need for proper human resource is felt badly. Critical analysis of ZTBL necessities recommending suggestions that would increase bank’s efficiency and effectiveness.

Basis for Promotion:

A sizeable portion of the officers of ZTBL, are promoted in without test and interviews to officers cadre. The promotion policy must be too tight and transparent that no one may have the chance to be promoted on criteria other than the required qualification, experience and performance. As for the present excess staff, those not found up to the required criteria, may be given GHS etc.

Needs of change in Recruitment Policy:

It is important to say that the external level market is full of the required talent like MBA, M. Com etc,. But on the country only graduation with simple subjects is still the requisite qualification for officer’s cadre, which has already worked amply in the devastation of ZTBL.

Computer Trainings:

The present conventional and orthodox training programmers need to be made more comprehensive and reinforced with inclusion of computer training courses.

Proper Documentation:

Loans become irrecoverable through court of law in case of default when the bank fails to prove their claims against the delinquent borrower. If documents are obtained properly as per terms of the loan it is not difficult for the counsel of the bank to get decree against the defaulter. For proper and valid documentation the following aspects must be kept in mind.

The bank should confirm that standard loan documentation is in place for each credit facility prior to disbursement. If the documents required

CHAPTER # 6.

WORK DONE BY ME DURING INTERNSHIP

I have worked as an internee in the Zarai Taraqiati Bank limited, Minchanabad branch for six weeks. During my internship I learned a lot about the banking work. The Minchanabad branch is a medium size branch of Bahawalpur Zone comparatively with others. I tried my best level to gain from this internship experience.

On first day i reported to the branch Manager on the order of Mr. Muhammad Khalid Zia, Zonal Chief, ZTBL Bahawalpur and he guided and informed me about the branch. In my first week he had given me information about the overall banking in this branch. He told me about the departments of the bank and some other basic information about the bank, records, etc.

In the next week he told me that now I have to start work in the different section. I started my internship in account section. The most of the working was conducted in this section. There was a lot of burden of work in account section. In this section the following are major activities :-

Account opening.

Maintaining of ledger

Maintaining of deposit balancing on computer.

Account opening.

In this department daily many peoples come for open the accounts according to their own choice of account. In PLS Saving account and current account procedure of opening of account is the same except the initial deposit.

The account opening form contains the following information's.

The type of account which any person want to be open, he has to

select that.

Nature of account whether individual or proprietorship or other.

Currency (in which want to operate).

Particular of deposits. (Period for operation).

Complete address.

Telephone number.

When this form is filled then signature of the person who want to open the account are to be taken on the specimen signature card. Then it is recorded in the PC. Then after a week letter of thanks when received by the person then a cheques book is issued to him. Now he can withdraw the amount by tilling cheques up to the extent of his balance, in the account.

In that account opening I also write the letter to the customer. There are two letter are written while opening the account

New customer

Introducer of new customer

These are printed letter on which just write the name of person and his addresser written

in the form.

Preparation of cheque book;

I issued cheques books. The cheques book is issued after opening of the account. The

Account No. is stamped by the rubber stamp on each cheque. Then it is given to the

person.

When all cheques books are issued to the customers then these are recorded in the cheque books issuance register. All cheque books are recorded with their a/c number and name of the person.

Cash Section.

I spent one week in the cash counter here I issued token to the customers and then recorded it into the token book. The procedure of issuing the token is that when cheque is presented at the counter. Then following things are checked.

The signatures on front and at the back.

Similarities in the signatures of the issuer of the cheque.

Date.

Amounts whether tally with the amount written in words.

Then token is issued to him and cheques are stamped at the back at which date and token No. Is filled. Then all cheques arc forwarded to the next counter where signatures are compared with the signatures in the book and the balance of the account is checked. If the cheque has not any fault on it then it is given to cash payment counter and cash is paid to the customer up to the amount mentioned on the cheques. I spent one week in this department.

I also completed their pending token books also.

01. Scroll book:

When cash is received at the counter it is recorded in the scroll book.

02. Paying cash book:

The cashier makes entry in the paying cash book when cash is paid.

03. Token book:

When any cheque or any negotiable instrument is presented it is recorded in the token book then token is issued.

04. Cash balance book:

The consolidated figure of receipt and payment of cash is entered in cash balance book.

Why account is open.

It is not safe for private individual to keep their surplus money at home. They can keep their money in safe custody by opening accounts in a bank. They can open deposit accounts for fixed period. The deposit account also earns interest for the depositors. Again the businessman conducts transaction is for thousands of rupees daily. It is unsafe to keep so much cash in hand for carrying on business transactions. They may put their money with some banks by opening deposit accounts. Now they can draw cheques for settlement of transactions without involving cash.

Procedure of opening of an account:

There are certain formalities which are to be observed for opening of a current account or saving a/c. With a bank , these formalities are as

Request of opening of an account.

Obtaining introduction

Specimen signatures

Minimum initial deposit

Operating the account / cheque book

l).Request of opening of an account.

The customer has to fill an account opening form . it is a formal request by a customer to the bank to allow him to have and operate the current or saving account

2). Obtaining introduction.

The bank before opening an account obtains introduction of the customers from an old customer, responsible person etc.

3). Specimen signatures.

When the banker satisfied about the information's provided in the form hen the banker obtains the specimen signatures of the customer on the signature book or on card. The duty of a banker is to verify customer's signature on the cheques with his specimen signature in order to ascertain whether there has been any forgery or fraud.

4). Minimum initial deposit.

In Pakistan to open up an account in the PLS account is up to Rs.JOOO/- it is the minimum requirement. However the account of zakat dependent can be opened by Rs.200/-

5). Operating the account./ cheque book.

When the account is operated the banker gives a pay-in-slip book, cheque Book, pass book with the view to operate it.

CONCLUSION

Almost all the ratios show a positive trend, which indicates that profitability; solvency and liquidity position of bank is sound. It means that the organization (ZTBL) is working progressively and the management is performing its role in a very good manner.

I have worked as an internee in ZTBL for six weeks. During my internship I learned a lot about the banking work.On first day I reported to the branch manager and he guided me and gave me information about the branch. In first week he had given me information about the overall banking in this branch. He told me about the bank and some other basic information about the bank, cheques, records, etc.

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PRESIDENT

SENIOR EXECUTIVE VICE PRESIDENT

SVP/Zonal Chief

VICE PRESIDENT

AVP/SO

AVP/SO

OFFICER

Supporting staff

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