Virtual Global Knowledge

The Bank of Punjab started functioning with the inauguration of its first branch of 7-Egerton Road, Lahore on November 15, 1989. The architect of the bank Mr. Nawaz Sharif then, the Chief Minister of Punjab, performed the inauguration.

In Pakistan, for long periods of time that the gap in savings and investment and trade deficit has posed a serious threat to target levels of growth-related ailments budget deficit and public debt, both external and internal add up. Interestingly, although growth in such adverse circumstances in the real sector during the previous year showed a favorable exchange, which speaks of hidden potential and strength of the economy.

BOP is essentially a financial organization. The bank is concerned about the commercial banking and related services in Pakistan and abroad. The nature of the operations of the bank is different and unique from other banks / financial institutions working in Pakistan. Balance of payments is the largest commercial bank in Pakistan. After redefining its role has become a modern commercial bank rather than a public sector organization.

Bank services are accessible to people, the government and the business sector. It also deals with treasury operations of the Government of Pakistan as an agent for the State Bank of Pakistan (SBP in places where no presence). It has a diversified business portfolio and is now a front-end player in the market for debt securities, agricultural finance, corporate investment banking, retail and consumer banking, treasury services and are taking a growing interest in development of small and medium businesses. It is also fulfilling its social responsibilities as a corporate citizen

BOP is a Governmental Organization. it implements the policies of State Bank of Pakistan as it is the agent of SBP. It deals all Government Revenue, collection and payments of salaries, pensions and also payments related to the Government Treasury. The bank also provides services as trustee to National Investment Trust (NIT) and Long-Term Credit Fund (LTCF)

BOP PRODUCT LINE

Deposit Products include

             I.      Current Accounts

          II.      BOP Basic Banking Account

       III.      BOP Tijarat Account (LCY)

       IV.      BOP FCY Supreme Current Account

Profit Loss Sharing Term Accounts

             I.      BOP Pehlay Munafa Scheme

          II.      Corporate Premier Term Account

       III.      Munafa Hi Munafa Term Account - III

       IV.      Bai Misaal Term Deposit Account

Profit Loss Sharing Chequing Accounts

             I.      PLS Saving Account

          II.      Senior Citizens Saving Account

       III.      Gharayloo Saving Account

       IV.      Ziada Munafa saving Account

          V.      PLS-Saving Profit Plus Account

       VI.      Corporate Premier Account

    VII.      BOP PLS Supreme Saving Account

 VIII.      BOP FCY Supreme Saving Account

Commercial Finance

                               I.      Running Finance

                            II.      Demand Finance

                         III.      Cash Finance

                         IV.      CNG Filling Station Scheme

                            V.      Auto Lease Financing Scheme

                         VI.      Car Dealers Financing scheme

                      VII.      Karobar Barhao Scheme

                   VIII.      Fertilizer Dealers Financing Scheme

                         IX.      Ali Akbar Group - Franchise Financing Scheme

                            X.      Atlas honda Limited - Authorized Dealers Financing Scheme

                         XI.      Financing Scheme - Purchase of Office/Shops

Consumer Finance

                               I.      Aasaish Loan

                            II.      Quick cash

                         III.      Car Loan

                         IV.      House Loan

                            V.      Smart Cash Personal Loan

                         VI.      BOP Motorcycle Loan

          Agriculture Credit

             I.      Green Tractor Lease Finance Scheme

          II.      Agri Finance Branches

       III.      Agricultural Finance Scheme

       IV.      Kissan Dost Tractor Scheme

          V.      Second Hand Tractor Lease Finance Scheme

       VI.      Kissan Dost Aabiari Scheme

    VII.      Kissan Dost Mechanization Support Scheme

 VIII.      Kissan Dost Farm Transport Scheme

       IX.      Kissan Dost Eslah-E-Arazi Scheme

          X.      Kissan Dost Live Stock Development Scheme

       XI.      Livestock Breed Improvement Trough VVW

    XII.      Kissan Dost Commercial Agro Services

 XIII.      Kissan Dost Agri Mall Finance Scheme

 XIV.      Corporate Farming Finance Scheme

    XV.      Commercial Lease Finance Tractor Scheme

 XVI.      Demand Finance-Sheds Construction and Civil Works

XVII.      Lease Finance Facility for Milch Animals

XVIII.      Running Finance-Livestock/Poultry and Fish Farms

 XIX.      Kissan Dost Model Dairy Farms (PDDC)

    XX.      Kissan Dost Model Milk Collection Center (PDDC)

 XXI.      Kissan Dost Green House Finance Facility

XXII.      Kissan Dost Cold Storage Finance Facility

XXIII.      Scheme for Controlled Sheds

XXIV.      Lease Finance Facility for Installation of Biogas Plant

XXV.      Group Financing to Small Farmers

XXVI.      Clean Credit Facility through Syngenta Franchisees

XXVII.      Zarkaashat Drip Irrigation System

XXVIII.      Markup of Schemes

Trade Finance

                                                 I.      Trade Processing Centres

                                              II.      Functions of Trade Processing Centres

All data regarding to BOP product line has been collected from the BOP website,

          Page source       https://www.bop.com.pk/Products.aspx

This department is basically known as “Deposit Department.” Deposit of funds from outside people is one of the most important functions of this system. Banking system is based on such deposits without these deposits it is difficult for the bank to run effectively. Deposits are capital of bank and it is more than bank own capital fund. This deposit is a form of borrowing for bank. Bank then uses these deposits by lent out it other parties that generate profits and bank is shared as well in such profit as well. Such deposit formation is done through opening an account in the bank account opening department

The function of this department is to make the arrangements for collection of bank cheques. But in the traditional banking system it is not the legal obligation of the banker to collect cheques drawn upon other bank for a customer.

1.      Demand Draft.

2.      Traveler’s Cheque

3.      Telegraphic transfer.

4.      Mail transfer.

5.      Pay order.

6.      OBC.

7.     IBC.

BOP is a banking company it is listed in stock exchange, hence BOP have to follow all roles and regulation which are set by the BOP Chairman. All strategy regarding to BOP plan, goal has been set through Chairman Office, and operation team accomplish these goal in light of given instructions.  BOP professionals are running operation management of the bank. The various operational departments are Consumer Banking & IT Division, Financial Division, Banking Operation, HR Division, Financial Control & Audit Division, Credit Management Division, and Commercial Banking Division, Corporate Banking Division, Treasury management & Foreign Exchange Group.

Since this bank is not performing under the boundary of Punjab, the bank is working as a scheduled commercial bank with its network of 273 branches at all major business centers in Pakistan, the bank provides all types of banking service such as deposit in local currency, clients deposit in foreign currency etc.  The bank of Punjab is performing their activities other province too. You could get its branch network from its official website, as it is functioning in other province with the sport of Punjab Government,

Check the link please

https://www.bop.com.pk/Branches.aspx

So the bank of Punjab is providing the same products and service facility as the others banks are providing. I think we should compare it with all others banks, which are surveying in the market with the same service.

Now your comments are required, however I am going to follow your comments

Thanks

Strength

1.      Firstly it is Supported by Punjab Government, or funded by the Punjab Government, it build people trust

2.      BOP has signed an MOU with Government of the Punjab to provide facility regarding to SME financing to the engineering firms of Government of the Punjab for managing infrastructure

3.      The bank of the Punjab is rated among top six banks in Pakistan, in perspective of remittance business as compare other province banks

4.      BOP has high credit rating as compare to other province bank, because BOP is performing positive role in economic progress through reengineered operations and innovative financial products

5.      BOP is doing well  in every facet of performance through clients focused policies to maximize value and satisfaction as compare to other province bank

6.      Wide range of consumers financing, agriculture loans scheme as compare to others province bank

7.      The BOP in strength that it is managing the Chief Minister self employment scheme for unemployed educated youth.

8.      The BOP has employ energetic work ethics conducive to merit, integrity better then peers and exceeding customers expectations as compare to other province banks

9.      BOP in a strength because it have Government Deposit as compare to others

10.  BOP has huge branches in commercial areas even remote area to meet the consumers desired

11.  BOP is following roles and regulation very strictly which received from Punjab Government, so it make the environment in disciplined  

12.  BOP has strength due to its name “Punjab” so Majority people prefer to deposit money in this bank

13.  BOP in strength because it has reliable, user friendly internal computer system for their consumers

14.  BOP has very sound financial strength as compare to others bank

Weakness

Opportunity

1.      Due to huge Government Deposit BOP has the opportunity to expand its network in remote areas.

2.      The BOP management have been improved by the new management, now there is opportunity to considered adequate effectively implemented and monitored

3.      BOP has opportunity it is earning commission on Government Transaction

4.      Due to huge revenue, BOP has opportunity to introduce new scheme related to Consumers finance, in Retail banking, and in Agriculture loan scheme  to obtained maximum market share

5.      BOP Trust and reliability due to supported by Punjab Government create opportunity to increase the deposit and profitability  through expanding their products and services to the peoples 

6.      Due to increasing in  deposit BOP could increase its investment and financing  in banking sector

Threats

Conclusion

As we know that internship is great tool for getting practical and professional knowledge. As you have seen, I have done my internship in BOP branch at Sahiwal. I have learnt lot of professional activities from this branch. I have worked in the various department, learnt something new from each, explanation about tasks are available in training program Report portion. After writing comprehensively report on BOP I have reached at this point, on some aspects, BOP has strength over other banks as you have seen in the SWOT analysis.  But on the other hand, during my stay at this branch and after write this report, I have found some issue regarding BOP Promotion activities. BOP do not have a modern marketing concept as compare to others, due to less participation in promotion activities BOP is facing low sales or low deposit.  Presently now till BOP has adopting tradition activities, but BOP management cannot know it is age of competitions. As I have written in the critical analysis BOP HR practice is also very poor. Employee motivation, employee job satisfaction is not up to the market. BOP has not any sound Performance appraisal system, where employee could get maximum benefits. On the other hand BOP needs a good supervision and leadership because the role of supervisor is very difficult. It requires sound leadership skills and ability to treat all employees fairly. BOP should teach your supervisors, managers to use positive feedback. I have also observed BOP is not offering attractive salary to their employees as compare to other banks. Salary is not a motivator for workers. But they do want to be paid fairly.  BOP has to make sure that it has clear policies regarding to salaries and bonuses.

Recommendation

1.      BOP policy frame work should be clear and should be transparences

2.      BOP are required to motivate their supervisor, branch managers that they treat with their employees fairly

3.      BOP should improve its Performance appraisal system and it must be on merit

4.      Employee training is essential, BOP should conduct training program for their workers.

5.      BOP should make a good working condition; e.g branch physical environment, working desk etc. if possible avoid overcrowding and allow each worker his or her own personal space.

6.      BOP should administer the associate performance review program

7.      BOP should build a formal recognition program, like employee of the month. Etc.

8.      BOP should give freedom, power to their workers to carry out their job, tasks so that they feel they “own” the result. Because workers motivation will be increased if they have ownership of their work.

9.      BOP should care employees bonus, incentives and stock options

10.  BOP should motivate its employee with effective communication

11.  BOP should follows the sound recruitment policy

12.  BOP should also adopting a good marketing concept, advertising strategy, promotional activities

Internet sources

https://www.bop.com.pk/index.aspx

https://www.bop.com.pk/Products.aspx

https://www.bop.com.pk/Branches.aspx

http://hrweb.berkeley.edu/guides/managing-hr/managing-successfully/performance-management