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Mustansar AzimMustansar Azim mc110202847 mc110202847 The Master’s of business The Master’s of business
administration (Finance)administration (Finance)
Internship report ofInternship report of
The Bank of Punjab The Bank of Punjab
Brief Introduction of the Brief Introduction of the OrganizationOrganization
established in 16 November, 1989 established in 16 November, 1989 was given the status of retail bank in 1994. was given the status of retail bank in 1994. The BOP was founded by Tajammul Hussain The BOP was founded by Tajammul Hussain functions as a scheduled commercial bank.functions as a scheduled commercial bank. The GOP is a majority shareholder of the BOP.The GOP is a majority shareholder of the BOP. network of 334 branchesnetwork of 334 branches It is the 7th largest commercial bank of Pakistan. It is the 7th largest commercial bank of Pakistan. It provides a wide range of banking products and services It provides a wide range of banking products and services
including deposits, trade, industry and agriculture.including deposits, trade, industry and agriculture. First Punjab Modarba (FPM) a wholly owned subsidiary of First Punjab Modarba (FPM) a wholly owned subsidiary of
bank was established in 1992 and is being managed by bank was established in 1992 and is being managed by Punjab Modarba services (Pvt) Ltd. Punjab Modarba services (Pvt) Ltd.
During the year 2013, setting up new Islamic Banking During the year 2013, setting up new Islamic Banking Operations. Operations.
Business volumeBusiness volume
2013 Rs. mn
2012 Rs mn. 2011 Rs mn
Balance sheet
Total assets 352,698 332,111 280,998
Advances 157,286 149,605 127,130
Investments 123,956 129,519 92,581
Equity 12,577 10,733 10,135
Reserves 905 1,638 638
Deposits 306,561 266,056 237,897
Borrowings 22,802 44,684 24,964
Operating ResultsOperating Results 2013 2013 2012 2012 20112011
Interest earnedInterest earned 24,228 24,228 24,666 24,666 20,685 20,685
Interest expenseInterest expense 20,209 20,209 22,523 22,523 21,073 21,073
Net markup incomeNet markup income 4,0194,019 2,1432,143 (388)(388)
Non-markup base Non-markup base incomeincome
3,5963,596 3,1913,191 1,9901,990
Non-markup base Non-markup base expenseexpense
5,280 5,280 4,5584,558 3,711 3,711
Provision against Provision against NPLsNPLs
(673)(673) (965)(965) (3,164)(3,164)
Net profit/loss Net profit/loss before taxbefore tax
3,0013,001 1,404 1,404 523 523
Net profit/loss after Net profit/loss after taxtax
1,938 1,938 1,634 1,634 348 348
Other InformationOther Information
EPS EPS
2.36 2.36
2.63 2.63
0.66 0.66
No. of No. of branches branches
334334
306306
284284
Staff strength Staff strength
6,0926,092
5,4915,491
4,9994,999
Breakup Breakup value value per/share per/share
5.585.58
4.824.82
4.554.55
CompetitorsCompetitors
Muslim Commercial BankMuslim Commercial Bank Allied Bank LimitedAllied Bank Limited United Bank LimitedUnited Bank Limited Habib Bank LimitedHabib Bank Limited Faissal Bank LimitedFaissal Bank Limited Bank AlfalahBank Alfalah Askari BankAskari Bank Summit BankSummit Bank
Training ProgramTraining Program
I have got understanding in almost all I have got understanding in almost all departments during my internshipdepartments during my internship
Introduction to general bankingIntroduction to general banking Account opening departmentAccount opening department Remittances departmentRemittances department Clearance departmentClearance department Cash departmentCash department Deposit & Marketing departmentDeposit & Marketing department
Account opening departmentAccount opening department
I had worked in this department for one weekI had worked in this department for one week I learned that how to open an accountI learned that how to open an account Filling the account opening formFilling the account opening form Specimen signature card (SSC)Specimen signature card (SSC) NADRA verificationNADRA verification Letter of thanksLetter of thanks Issuance of cheque bookIssuance of cheque book Issuance of ATM cardIssuance of ATM card
Remittances departmentRemittances department
I had worked in this department for one weekI had worked in this department for one week Demand draft (DD) is a written order to pay certain amount Demand draft (DD) is a written order to pay certain amount
by the bank branch to other bank branchby the bank branch to other bank branch Pay order are issued for local or with in city for the transfer Pay order are issued for local or with in city for the transfer
of money of money Telegraphic Transfer (TT) is instant transfer of funds from Telegraphic Transfer (TT) is instant transfer of funds from
one place to other place through telecommunication. one place to other place through telecommunication. Mail Transfer (MT) is the transfer of funds from one place to Mail Transfer (MT) is the transfer of funds from one place to
other place in the shape of document through mail. other place in the shape of document through mail.
Clearing departmentClearing department
I had worked in this department for one weekI had worked in this department for one week observed how clearing of cheques takes place observed how clearing of cheques takes place National institutional facilitation technology (NIFT) National institutional facilitation technology (NIFT) Inward clearing Inward clearing Outward clearingOutward clearing
Cash departmentCash department
I had worked in this department for one weekI had worked in this department for one week Cash receipt Cash receipt Cash paymentCash payment Token Token Payment on checquePayment on checque Sorting the cashSorting the cash
Deposit & MarketingDeposit & Marketing
I had worked in this department for one weekI had worked in this department for one week Visited a customer for depositVisited a customer for deposit Learned marketing techniques Learned marketing techniques
Learning ExperiencesLearning Experiences
Knowledge GainedKnowledge Gained
Internship was the practical and real experience of all the Internship was the practical and real experience of all the courses courses
How money and financial system works collectively in an How money and financial system works collectively in an economy economy
Financial statements analysisFinancial statements analysis
Skills LearnedSkills Learned
Communication skillsCommunication skills Managerial skillsManagerial skills Computer skillsComputer skills
analyze and interpretation of the annual reports for different analyze and interpretation of the annual reports for different
users for better decision makingusers for better decision making Leadership qualitiesLeadership qualities
Attitudes Observed/Values GainedAttitudes Observed/Values Gained
• Hardworking • IntegrityIntegrity• honesty honesty • Helping attitudeHelping attitude
Most Challenging Task PerformedMost Challenging Task Performed
I think internship program was itself a challenging task I think internship program was itself a challenging task to convince the customers for opening an account in this to convince the customers for opening an account in this
bank who has already account in another bankbank who has already account in another bank To collect the depositTo collect the deposit
Ratio AnalysisRatio Analysis
Ratio Ratio AnalyAnalysissis
The Bank of PunjabThe Bank of Punjab
Net Profit / Total Revenue * 100Net Profit / Total Revenue * 100
Year 2011Year 2011 Year 2012Year 2012 Year 2013Year 2013
Net Net Profit Profit MarginMargin
347,973 / 347,973 / 20,685,01120,685,011 *100*100 = 1.68 %= 1.68 %
1,633,841 / 1,633,841 / 24,666,024 24,666,024
*100 *100 = 6.62 %= 6.62 %
1,938,007 / 1,938,007 / 24,227,721*100 24,227,721*100
= 7.80 %= 7.80 %
0.00%
2.00%
4.00%
6.00%
8.00%
2011
2012
2013
Increasing trend
Ratio Ratio AnalyAnalysissis
The Bank of PunjabThe Bank of Punjab
Net Markup Margin / Interest EarnedNet Markup Margin / Interest Earned
Year 2011Year 2011 Year 2012Year 2012 Year 2013Year 2013
Gross Gross SpreaSpread d RatioRatio
(388,260) / (388,260) / 20,685,01120,685,011*100*100= -1.88 %= -1.88 %
2,143,106 / 2,143,106 / 24,666,02424,666,024
*100 *100 = 8.69 %= 8.69 %
4,019,034 / 4,019,034 / 24,227,72124,227,721
*100 *100 = 16.59 %= 16.59 %
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
2011
2012
2013
Increasing trend
Working of net markup marginWorking of net markup margin
Net Markup Margin = Markup/ Interest Earned -Net Markup Margin = Markup/ Interest Earned - Markup/ Interest Markup/ Interest ExpenseExpense
2011= 2011= 20685011 – 21073271 = (388260)20685011 – 21073271 = (388260) 2012= 2012= 24666024 – 22522918 = 214310624666024 – 22522918 = 2143106 2013= 2013= 24227721 – 20208687 = 401903424227721 – 20208687 = 4019034
Interest Earned = Interest Earned = 2011= 2011= 2068501120685011 2012= 2012= 2466602424666024 2013= 2013= 224227721224227721
Ratio Ratio AnalyAnalysissis
The Bank of PunjabThe Bank of Punjab
Interest earned / Interest ExpenseInterest earned / Interest Expense
Year 2011Year 2011 Year 2012Year 2012 Year 2013Year 2013
SpreaSpread d RatioRatio
20,685,011 / 20,685,011 / 21,073,27121,073,271*100*100= 0.98 times= 0.98 times
24,666,024 / 24,666,024 / 22,522,91822,522,918
*100 *100 = 1.09 times= 1.09 times
24,227,721 / 24,227,721 / 20,208,687 20,208,687
*100 *100 = 1.19 times= 1.19 times
0
0.2
0.4
0.6
0.8
1
1.2
2011
2012
2013
Increasing Trend
Ratio Ratio AnalyAnalysissis
The Bank of PunjabThe Bank of Punjab
Non Interest Income/ Total Interest IncomeNon Interest Income/ Total Interest Income
Year 2011Year 2011 Year 2012Year 2012 Year 2013Year 2013
Non Non intereinterest to st to total total incomincomee
1,989,708 / 1,989,708 / 22,674,71922,674,719*100*100= 8.78 %= 8.78 %
3,190,745 / 3,190,745 / 27,856,76927,856,769
*100 *100 = 11.45 %= 11.45 %
3,596,226 / 3,596,226 / 27,823,947 27,823,947
*100 *100 = 12.92 %= 12.92 %
0
2
4
6
8
10
12
14
2011
2012
2013
Increasing Trend
Working of total interest incomeWorking of total interest income
Total income = total non interest income + total interest Total income = total non interest income + total interest incomeincome
2011 = 1989708 + 20685011 = 226747192011 = 1989708 + 20685011 = 22674719 2012 = 3190745 + 24666024 = 278567692012 = 3190745 + 24666024 = 27856769 2013 = 3596226 + 24227721 = 278239472013 = 3596226 + 24227721 = 27823947
Total non interest incomeTotal non interest income 2011 = 19897082011 = 1989708 2012 = 31907452012 = 3190745 2013 = 35962262013 = 3596226
Ratio Ratio AnalyAnalysissis
The Bank of PunjabThe Bank of Punjab
Net Income / Average Total Assets *100Net Income / Average Total Assets *100
Year 2011Year 2011 Year 2012Year 2012 Year 2013Year 2013
ReturReturn on n on assetsassets
347,973 / 347,973 / 255,093,902255,093,902*100*100= 0.14 %= 0.14 %
1,633,841 / 1,633,841 / 306,554,292.5 306,554,292.5
*100 *100 = 0.53 %= 0.53 %
1,938,007 / 1,938,007 / 342,404,599.5 342,404,599.5
*100 *100 = 0.57 %= 0.57 %
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
2011
2012
2013
Increasing Trend
Working of average total assetsWorking of average total assets
Average total assets = Opening assets + closing assets / 2Average total assets = Opening assets + closing assets / 2
Average assets for FY 2011: 229,190,273 + 280,997,531 / 2Average assets for FY 2011: 229,190,273 + 280,997,531 / 2 = = 255,093,902255,093,902 Average assets for FY 2012: 280,997,531 + 332,111,054 / 2Average assets for FY 2012: 280,997,531 + 332,111,054 / 2 = = 306,554,292.5306,554,292.5
Average assets for FY 2013: 332,111,054 + 352,698,145Average assets for FY 2013: 332,111,054 + 352,698,145 = 342,404,599.5= 342,404,599.5
Ratio Ratio AnalyAnalysissis
The Bank of PunjabThe Bank of Punjab
Net Profit Margin * Total Asset TurnoverNet Profit Margin * Total Asset Turnover
Year 2011Year 2011 Year 2012Year 2012 Year 2013Year 2013
Du Du Pont Pont ReturReturn on n on assetsassets
1.68 % * 0.081.68 % * 0.08
= 0.14 % = 0.14 %
6.62% * 0.086.62% * 0.08
= 0.53 %= 0.53 %
7.80 % * 0.07 7.80 % * 0.07
=0.55 %=0.55 %
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
2011
2012
2013
Increasing Trend
Working of total asset turnoverWorking of total asset turnover
Net Sales / Average total AssetsNet Sales / Average total Assets
2011 = 20,685,011 / 255,093,902 = 0.08 times2011 = 20,685,011 / 255,093,902 = 0.08 times 2012 = 24,666,024 / 306.554, 292.5 = 0.08 times2012 = 24,666,024 / 306.554, 292.5 = 0.08 times 2013 = 24,227,721 / 342,404,599.5 = 0.07 times2013 = 24,227,721 / 342,404,599.5 = 0.07 times
Net Profit marginNet Profit margin 2011 = 1.68 %2011 = 1.68 % 2012 = 6.62 %2012 = 6.62 % 2013 = 7.80% 2013 = 7.80%
Ratio Ratio AnalyAnalysissis
The Bank of PunjabThe Bank of Punjab
Net Income / Total EquityNet Income / Total Equity
Year 2011Year 2011 Year 2012Year 2012 Year 2013Year 2013
ReturReturn on n on EquityEquity
347,973 / 347,973 / (6,864,911)(6,864,911)*100*100= -5.07 % = -5.07 %
1,633,841 / 1,633,841 / (6,266,957)(6,266,957)
*100 *100 = -26.07 %= -26.07 %
1,938,007 / 1,938,007 / 576748 *100 576748 *100
= 336.13 %= 336.13 %
-50.00%
0.00%
50.00%
100.00%
150.00%
200.00%
250.00%
300.00%
350.00%
2011
2012
2013
Working of total equityWorking of total equity
Total equity = share capital + reserves + UN appropriated Total equity = share capital + reserves + UN appropriated profit / loss profit / loss
2011 = 2011 = 5287974 + 1914956 + (14067841) 5287974 + 1914956 + (14067841) = (= (6864911)6864911) 2012 = 2012 = 5287974 + 1187433 + (12742364) 5287974 + 1187433 + (12742364) = (= (6266957)6266957) 20132013 = 10551132 + (263158) + 1539659 + (11250885) = 10551132 + (263158) + 1539659 + (11250885) = = 576748576748
Ratio Ratio AnalyAnalysissis
The Bank of PunjabThe Bank of Punjab
Total Debt / Total AssetsTotal Debt / Total Assets
Year 2011Year 2011 Year 2012Year 2012 Year 2013Year 2013
Debt Debt RatioRatio
270,244,941/ 270,244,941/ 280,997,531280,997,531*100*100= 96.16 %= 96.16 %
319,739,551/ 319,739,551/ 332,111,054332,111,054
*100 *100 = 96.27 %= 96.27 %
339,216,847/ 339,216,847/ 352,698,145 352,698,145
*100 *100 = 96.17 %= 96.17 %
96.10%
96.12%
96.14%
96.16%
96.18%
96.20%
96.22%
96.24%
96.26%
96.28%
2011
2012
2013
Working of total debtWorking of total debt
Total Debt = bill payable + borrowing from financial Total Debt = bill payable + borrowing from financial institutions + deposits and other accounts + liabilities against institutions + deposits and other accounts + liabilities against finance lease + other liabilitiesfinance lease + other liabilities
20112011= 850569 + 24963566 + 237896700 +7831 +6506275 = 850569 + 24963566 + 237896700 +7831 +6506275 ==270224941270224941
20122012= 1500709 + 44683826 + 266055781 + 3601 +7495634 = 1500709 + 44683826 + 266055781 + 3601 +7495634 ==319739551319739551 20132013= 1506335 + 22802482 + 306560767 + 2386 +8344877 = 1506335 + 22802482 + 306560767 + 2386 +8344877
= =339216847339216847
Working of total assetsWorking of total assets
Total Assets = cash and balances with treasury banks + Total Assets = cash and balances with treasury banks + balances with other banks + lending to financial institutions balances with other banks + lending to financial institutions + Investments + Advances + operating fixed assets + other + Investments + Advances + operating fixed assets + other assetsassets
20112011 = 16698333 + 3607107 + 7447375 + 92581306 + = 16698333 + 3607107 + 7447375 + 92581306 + 127129501 + 3597483 + 13886769 +16049657 127129501 + 3597483 + 13886769 +16049657
= = 280997531280997531 20122012= 17298251 + 3101170 + 1562946 + 129518999 + = 17298251 + 3101170 + 1562946 + 129518999 +
149605002 + 3473491 + 13070614 +14480581= 149605002 + 3473491 + 13070614 +14480581= 332111054332111054
20132013 = 23820864 + 4265296 + 11407448 + 123956143 + = 23820864 + 4265296 + 11407448 + 123956143 + 157285598 + 3514801 + 12627352 + 15820643 157285598 + 3514801 + 12627352 + 15820643
==352698145352698145
Ratio Ratio AnalyAnalysissis
The Bank of PunjabThe Bank of Punjab
Total Debt / Total Equity * 100Total Debt / Total Equity * 100
Year 2011Year 2011 Year 2012Year 2012 Year 2013Year 2013
Debt/Debt/Equity Equity RatioRatio
270,244,941/ 270,244,941/ (6,864,911)(6,864,911)*100*100= -39.4 times= -39.4 times
319,739,551 / 319,739,551 / (6,266,957)(6,266,957)
*100 *100 = -51.09 times= -51.09 times
339,216,847 / 339,216,847 / 576,748 *100576,748 *100
= 588.15 times = 588.15 times
-100
0
100
200
300
400
500
600
2011
2012
2013
Working of total debtWorking of total debt
Total Debt = bill payable + borrowing from financial Total Debt = bill payable + borrowing from financial institutions + deposits and other accounts + liabilities against institutions + deposits and other accounts + liabilities against finance lease + other liabilitiesfinance lease + other liabilities
20112011= 850569 + 24963566 + 237896700 +7831 +6506275 = 850569 + 24963566 + 237896700 +7831 +6506275 ==270224941270224941
20122012= 1500709 + 44683826 + 266055781 + 3601 +7495634 = 1500709 + 44683826 + 266055781 + 3601 +7495634
==319739551319739551 20132013= 1506335 + 22802482 + 306560767 + 2386 +8344877 = 1506335 + 22802482 + 306560767 + 2386 +8344877
= =339216847339216847
Working of total equityWorking of total equity
Total equity = share capital + reserves + UN appropriated Total equity = share capital + reserves + UN appropriated profit / loss profit / loss
2011 = 2011 = 5287974 + 1914956 + (14067841) 5287974 + 1914956 + (14067841) = (= (6864911)6864911) 2012 = 2012 = 5287974 + 1187433 + (12742364) 5287974 + 1187433 + (12742364) = (= (6266957)6266957) 20132013 = 10551132 + (263158) + 1539659 + (11250885) = 10551132 + (263158) + 1539659 + (11250885) = = 576748576748
Ratio Ratio AnalyAnalysissis
The Bank of PunjabThe Bank of Punjab
EBIT / Interest ExpenseEBIT / Interest Expense
Year 2011Year 2011 Year 2012Year 2012 Year 2013Year 2013
Times Times intereinterest st earneearned d RatioRatio
21,596,018 / 21,596,018 / 21,073,27121,073,271*100*100
= 1.02 times= 1.02 times
23,926,810 / 23,926,810 / 22,522,91822,522,918
*100*100
= 1.06 times= 1.06 times
23,209,969 / 23,209,969 / 20,208,687 20,208,687
*100*100
= 1.15 times= 1.15 times
0.95
1
1.05
1.1
1.15
2011
2012
2013
Increasing Trend
Working of EBITWorking of EBIT
EBIT = Profit before Tax + Interest expenseEBIT = Profit before Tax + Interest expense
2011 = 522747 + 21073271 = 215960182011 = 522747 + 21073271 = 21596018 2012 = 1403892 + 22522918 = 239268102012 = 1403892 + 22522918 = 23926810 2013 = 3001282 + 20208687 = 232099692013 = 3001282 + 20208687 = 23209969
Ratio Ratio AnalyAnalysissis
The Bank of PunjabThe Bank of Punjab
Net Advances / Total DepositsNet Advances / Total Deposits
Year 2011Year 2011 Year 2012Year 2012 Year 2013Year 2013
AdvanAdvance/ ce/ deposdeposit it RatioRatio
127,129,501/ 127,129,501/ 237,896,700237,896,700
= 0.53 times= 0.53 times
149,605,002 / 149,605,002 / 266,055,781266,055,781
= 0.56 times= 0.56 times
157,285,598 / 157,285,598 / 306,560,767 306,560,767
= 0.51 times= 0.51 times
0.48
0.49
0.5
0.51
0.52
0.53
0.54
0.55
0.56
2011
2012
2013
Ratio Ratio AnalyAnalysissis
The Bank of PunjabThe Bank of Punjab
CF from operation / Current LiabilitiesCF from operation / Current Liabilities
Year 2011Year 2011 Year 2012Year 2012 Year 2013Year 2013
OperaOperating ting cash cash flow flow RatioRatio
32,984,625 / 32,984,625 / 203,709,219203,709,219
= 0.16 times= 0.16 times
20,546,543 / 20,546,543 / 241,238,175241,238,175
= 0.09 times= 0.09 times
3,731,609 / 3,731,609 / 247,832,961 247,832,961
= 0.02 times= 0.02 times
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
2011
2012
2013
Decreasing Trend
Working of cash flow from operationWorking of cash flow from operation
Cash flow from operation (taken from cash flow statement): Cash flow from operation (taken from cash flow statement):
2011 = 329846252011 = 32984625 2012= 205465432012= 20546543 2013= 37316092013= 3731609
Working of current liabilitiesWorking of current liabilities
2011 2012 2013
Bill payable 850569 1500709 1,506,335
Borrowings 24055899 43968561 220,664,408
Deposits 172757623 190565772 219,222,506
Portion of liabilities against assets finance lease
4026 1084 1,270
Other liabilities
6041102 5302049 5,036,442
Total 203,709,219 241,238,175 247,832,961
Details of C/L forDetails of C/L for
FY2011FY2011Up to 1 month
1-3 months
3-6months
6 months to 1 year
Bills payable 850,569
850,569
Borrowings 19,456,240
2,879,451
1,652,900 67,308 24,055,899
Deposits and other accounts
38,876,481
45,516,576
38,553,721
49,810,845 172,757,623
Liabilities against assets subject to finance lease
323 660 1,022 2,021
4,026
Deferred tax liability -
-
- - 0
Other liabilities 5,439,033
- - 602,069 6,041,102
Total current liabilities
203,709,219
Details for Details for C/L 2012C/L 2012
Up to 1 month
Over 1month to 3 months
Over 3 months to 6 months
Over 6 months to 1 year
Bills payable 1,500,709 1,500,709
Borrowings 38,017,652 3,281,043 2,561,926 7,940 43,868,561
Deposits and other accounts
45,984,904 46,197,025 47,609,208 50,774,635 190,565,772
Liabilities against assets subject to finance lease
84 171 266 563 1084
Deferred tax liability
-
- - - 0
Other liabilities
4,779,158
25,514
- 479,377 5,302,049
Total current liabilities
241,238,175
Details of Details of C/L 2013C/L 2013
Up to 1 month
Over 1month to 3 months
Over 3 months to 6 months
Over 6 months to 1 year
Bills payable 1,506,335 1,506,335
Borrowings 14,833,228 4,979,067 2,243,417 10,696 22,066,408
Deposits and other accounts
62,249,483 58,503,528 46,700,450 51,769,045 219,222,506
Liabilities against assets subject to finance lease
98 201 311 660 1270
Deferred tax liability
-
- - - 0
Other liabilities
4,529,358 2,333 2,852 501,899 5,036,440
Total current liabilities
247,832,961
Dividend per share Dividend per share
In last three years the bank of Punjab had not paid any dividend to its shareholders
Ratio Ratio AnalyAnalysissis
The Bank of PunjabThe Bank of Punjab
Net Income / Total Share OutstandingNet Income / Total Share Outstanding
Year 2011Year 2011 Year 2012Year 2012 Year 2013Year 2013
EarninEarnings per gs per shareshare
347,973 / 347,973 / 528,797528,797
= Rs. 0.66= Rs. 0.66
1,633,841 / 1,633,841 / 528,797528,797
= Rs. 3.09= Rs. 3.09
1,938,007 / 1,938,007 / 10,55,113 10,55,113
=Rs. 1.84 =Rs. 1.84
0
0.5
1
1.5
2
2.5
3
3.5
2011
2012
2013
Mixed Trend
Ratio Ratio AnalyAnalysissis
The Bank of PunjabThe Bank of Punjab
Current market price per share / EPSCurrent market price per share / EPS
Year 2011Year 2011 Year 2012Year 2012 Year 2013Year 2013
Price / Price / EarninEarnings gs shareshare
5.41 / 0.665.41 / 0.66
= 8.20 times= 8.20 times
10.7 / 3.0610.7 / 3.06
= 3.50 times= 3.50 times
11.02 / 1.84 11.02 / 1.84
= 6.0 times= 6.0 times
0
1
2
3
4
5
6
7
8
9
2011
2012
2013
Mixed Trend
ConclusionConclusion
During internship, I concluded following problems During internship, I concluded following problems related to my training and organization internal related to my training and organization internal structure.structure.
Old technology and methods are used in operations Old technology and methods are used in operations and work environment.and work environment.
Customers are ignoredCustomers are ignored No proper human resource departmentNo proper human resource department Communication between junior and high rank staff is Communication between junior and high rank staff is
poorpoor Staff is lethargic and lack of motivationStaff is lethargic and lack of motivation Trainees and interns are not properly guided Trainees and interns are not properly guided
The net profit margin of the bank of Punjab is growing and The net profit margin of the bank of Punjab is growing and increasing every year which is good indicator for increasing every year which is good indicator for organization.organization.
Gross spread is good and improving every year because Gross spread is good and improving every year because management controlled its interest expenses.management controlled its interest expenses.
Spread ratio is also good and improving every year because Spread ratio is also good and improving every year because it meets its interest expenses.it meets its interest expenses.
Non interest income is increasing every year and non interest Non interest income is increasing every year and non interest income to total income is increasing and good for bank.income to total income is increasing and good for bank.
Return on assets is low and increasing.Return on assets is low and increasing. Du pont on return on asset is also very low increasing trend.Du pont on return on asset is also very low increasing trend.
Times interest earned is good and increasing.Times interest earned is good and increasing. Return on equity is good and has increasing trend from Return on equity is good and has increasing trend from
previous yearsprevious years Debt ratio is very high for all yearsDebt ratio is very high for all years Debt to equity ratio is extremely high.Debt to equity ratio is extremely high. Advance to deposit ratio is not good and very lowAdvance to deposit ratio is not good and very low Operating cash flow ratio is very lowOperating cash flow ratio is very low Dividend is not paid from previous three years which is not Dividend is not paid from previous three years which is not
good and attractive for investors.good and attractive for investors. Earnings per share is goodEarnings per share is good Price earnings ratio is good and increasingPrice earnings ratio is good and increasing
RecommendationsRecommendations
The bank of Punjab can increase its profitability to decrease The bank of Punjab can increase its profitability to decrease the non interest expenses.the non interest expenses.
The BOP can increase its spread ratios to decrease the The BOP can increase its spread ratios to decrease the interest expense.interest expense.
The management should utilize its assts to increase and The management should utilize its assts to increase and improve return on assets and the du pond on return on assets.improve return on assets and the du pond on return on assets.
The BOP should decrease its debt ratio as well as debt equity The BOP should decrease its debt ratio as well as debt equity ratio. High debt ratio and high debt equity ratio leads to high ratio. High debt ratio and high debt equity ratio leads to high leverage which could cause bankruptcy so BOP should leverage which could cause bankruptcy so BOP should decrease its debt to increase the equity.decrease its debt to increase the equity.
BOP should increase its advances to earn more profit from BOP should increase its advances to earn more profit from its deposits for the improvement of profitability. its deposits for the improvement of profitability.
The BOP should improve its operating cash flow with The BOP should improve its operating cash flow with improve its operation andimprove its operation and
improve its liquidity to reduce its short term borrowings.improve its liquidity to reduce its short term borrowings.
Thank YouThank You