Internship Report

2010

Masters of Business Administration Program

Evaluation

Internship report submitted for the final evaluation in partial fulfillment of the degree of

Master in Business Administration

It is certified that, the Internship report and the work contained in it conforms to all the standards set by the institute for the evaluation of any such work.

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University Institute of Management Sciences

PMAS - University of Arid Agriculture, Rawalpindi

2010

Dedication

I would like to dedicate my entire work to my parents and teachers, whose prayers and guidance helped me to

complete this task.

Acknowledgement

Every praise to Allah Almighty the merciful, who knows about whatever is there in universe, hidden or evident. Who enables me to get such valuable knowledge, which

definitely helped me in my professional life.

I would like to thanks Mr. Naik Muhammad Javed who trust my abilities and gave me opportunity to use my skill. Thanks to all staff of ZTBL. They gave me their precious time and I learned lot from them. Thanks to all my friends and family who helped me.

Table of Content

Executive summary

About ZTBL

Mission

Vision

Organizational Setup

ZTBL organization Chart

Credit Operation Department

Credit operation unit

Credit planning and monitoring unit

Swot Analysis

Work description

Analysis

Conclusion

Appendices

References

Executive Summary

The Zarai Traqiati Bank Limited (ZTBL) is single largest supplier of institutional

agriculture credit in Pakistan. ZTBL is corporate body enjoying sami- autonomy in the

conduct of its operations. The federal government together with state bank of Pakistan

exercise policy control over bank. Both the availability of financial resources and

quantum of lending programs of the bank are subject to their approval.

The funds for lending are provided by State Bank of Pakistan at 2% below bank rate. The

foreign loan obtained from IDA, Swedish International Development Authority, and

Asian Development Bank. Lending is done for uptake of modern technology, tapping of

underground water resources, application of chemical inputs and miscellaneous activities.

I have done my internship at ZTBL in its Credit Operations Department under

supervision of Mr. Naik Muhammad Javed, SEVP.

My internship goals are to learn about different functions that are performed in COD.

I have learned from internship how to carry out work, handle my responsibilities, and

learned how to interact with others and what kind of organizational behaviors are

acceptable and non acceptable. I leaned time management and work accomplishment

effectively and efficiently.

I observed there friendly environment, strong relationship among pears and computerized

system which enabled organization to avoid problems related to manual system.

About ZTBL

Zarai Traqiati 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.

For all practical purposes the Bank is an arm for Government for implementing overall

agriculture policy for credit front. The design of credit is linked so for as possible with

the periodic priorities and targets as laid down in annual development plans.

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 sustainable

financing, special lending programs, technical assistance

and other product and services and to promote career

development opportunities for increasing professionalism and technical proficiencies of

employees.

Vision

Dedicated to serve the needs of the farming community,

by delivering financial products and technical services on

a competitive and sustainable biases, in a convents,

efficient and professional manner, leading to success of

the bank and farmers.

Organizational Setup

Board of Directors

Audit committee

Chief internal Auditor

Field Internal Audit Zones (7)

MCOs (1243)

Branches (348)

Zonal Offices(25+9 Area Offices)

Staff Office (1)

Departments (36)

Divisions (10)

Head Office

President

ZTBL Organizational Chart

PresidentCorporate

sectary and

corporate affairs

Public relation unit

Md KsslSubsidiary of ZTBL

Inspection and

compliance department

Credit Operation

Department

Credit Policy

Department

AEVP Credit

Division

Data Bank

EVP, Res &Planning Division

Res &Planning Department

Inspection and

compliance department

Risk management Department

Compliance Department

Disciplinary

Proceeding Department

ProjectImplementatio

nUnit

PublicRelation

Unit

EVP HR Division

Hr operation

Department

Policy and

regulation Department

Staff relation and

welfare department

Performance Mgt

Department

Legal service

department

Medical service

department

AVPService Division

General service

Department

Inspection and

compliance department

Inspection and

compliance department

Inspection and

compliance department

Inspection and

compliance department

Inspection and

compliance department

Inspection and

compliance department

Training & developmen

t department

Chief information

officer

EVP information

system division

IT operation

Dept

Member’s task force

Agriculture technology dept

Head Sevp

task force

Credit operations Department

It system

develop department

It user support

dept

It network Dept

SAM Department

AEVP recovery

and SAM division

RecoveryDepartment

Regulatory reporting dept

Budget and fund Mgt

CFO/ SEVP

AEVP Finance and Account

Head Sevp

task force

Central

account

dept

Agriculture technology

dept

Business dev &

Marketing dept

AEVP operations Division

Branches operation

dept

Zonal officeArea officeBranches

IT Audit

Field Audit

SEVP Internal Audit

Corporate Audit

7 Audit zones

IT security Dept

HO Account

dept

Aim

To prepare banks annual credit plan and support business development of bank through

establishing, maintaining and improving system and process for delivery of all goods and

services through network of branches.

Objectives

Introduction of new and continuous review, monitoring of credit operation through

network of branches

Draw annual credit plan ensuring emphasize on small farmers expanding outreach

through innovative packages of customer, friendly products and priority items

Follow-up monitoring / implementation of credit plan

Facilitate the approval of loan cases referred to Head office credit committee

Credit Operations Unit

Functions

1. Direct and coordinate implementation of system related studies / project

2. Support user in application of system, attending to and resolving system problems in

conjunction with system specialists.

3. Ensure that procedure system stationery. Documentation ect. Related to COD are in

place and incompliance with external and internal rules for all present and new products

and services of bank.

4. preparation of operating procedure manual

5. identify all operational and transactional risks to develop key risk indicators for

function

6. develop and adopt early warning system to proactively mitigate these risks

7. ensure implementing the system in all the branches/ field office related to credit

operations

8. Prepare summary of loan cases referred to Head office credit committee for

consideration of committee and issuance of sanction letters on approval of loan

proposal.

9. Deal with loans already sanctioned by Head office under general credit.

10. Manage all administrative meters of the departmental, including employees training and

development, ACRs, departmental budget and sanctioning of leaves and tour programs

etc.

Credit Planning and Monitoring Unit

1. Formulation and monitoring of annual / future leading plans with emphasize on

coverage of small farmers and priority items and poverty alleviation.

2. Analysis and monitoring of disbursements of Zones and persuasion for achievement of

disbursement targets.

3. Completion of periodical data on disbursement covering various angles for use of

Division Head of operation Division and department under Division

4. Preparation of agenda on operational performance of the bank for Board of Directors.

5. Reply to National Assembly/ Senate questions and other queries from GOP regarding

disbursement and credit programs of the Bank.

6. Provide of feedback to information system division being major user of computerized

data.

7. Control parameters, system access, safeguard data integrity and direct contingency

actions in emergency.

8. Perform any other assignment given by higher management from time to time.

SWOT Analysis of Organization

The unique strengths are internal abilities of an organization that can be used to have a

competitive advantage for the organization. Weaknesses inherent in organization are those that

need improvement for better functioning of an organization. Opportunities are those which are

available to organization currently as well as in the foreseeable future. Threats are those that

organization faces from its competitors, regulatory bodies, and technological change or

customer preferences. The identification and analysis of strengths, Weaknesses, opportunities

and threats is focal to any strategic process.

Strengths

Enrich Agri-relation ship of 40 years

Extensive countrywide network of 343 branches

Grass root level contact with the farmers through functionaries

Predominant position in agriculture finance market

Support of Government, State Bank of Pakistan and International Development

Institution in respect of restructuring

Supervised and diversified credit system

Marketing is done with customer friendly cues and language

Employs having first hand experience with farmers hired from remote areas

Availability of Staff training facilities

Weaknesses

poor perceived image

political interference in operational and administrative matters of bank

centralized administrative and financial authority

Skill mis-match of staff

Aging work force

Over- supervised management structure

Lack of commercial mindset

Weak and cumbersome systems and procedures

Strongly entrenched resist to change

Around 600 pending disciplinary cases

Opportunities

Huge untapped ruler market potential of about Rs. 300 billion

Huge untapped micro finance market segments

Potential for bringing huge uncultivated areas under production

Potential for expansion through mobilization of rural and urban savings

Potential for marketing new product lines on commercial basis

Post restructuring potential for obtaining financial credit lines

Threats

Competitive commercial banks

External pressure to implement non-commercial directives

Various unrecovered loans taken by big guns

Political and economic instability and law and order situation

Water disputes within country

Public sector organization

Work Description

During my stay in ZTBL (6 weeks) I worked in 2 units of Credit operations Department

which are:

Credit operation unit

Credit policy department

In COU I first of all learned about how to male weekly productivity reports then by using

Ms Excel I prepared weekly for COD. In weekly by applying different productivity

formulas we enter different recovered loans list provided by IT department. Then at the

end of month “Monthly productivity report” is produced in which results are matched

with standards provided by State Bank of Pakistan.

In CPD my duty is to access over internet different cost packages for capital like tractors,

buffalos, other agriculture machinery and fertilizers ect. Process called cost economics.

Findings were delivered to higher authority for final decisions.

Dispatching System

Beside this I also worked in Dispatching System

Main purpose of this system is to keep record of all incoming and outgoing letters,

emails, and applications. These letters are circulated inside (between departments and

units) and outside organization (stake holders or suppliers). For this purpose using MS

Office “Master File” is produced in which details about letter received (receiving date,

from whom it is received and whom to forward with date) and then detail about letter

Delivery (delivered date and name of department or person where it has to be delivered.

A copy of letter is attached in hard form in Master file.

Another record is maintained side by side called Employee Diary

In this record of sender and receiver is kept.

Analysis

This internship provided me practical knowledge abut COD functioning. It also helped

me in understanding and observation of bank environment, its various department

interconnectivity and technical functioning. Through Credit policy department I learned

Analytical skills which will help me in future career.

New knowledge Acquired

The core of my internship was the knowledge I acquired. Before internship I was

entirely ignorant of a bank’s business processes. But this internship program has

made me aware of most of bank’s business processes and hence it has built in me,

immense confidence to step into bank and carry out the routine banking tasks.

New Exposure

My internship experience has given me a completely new industry exposure in the

banking sector, which includes both the consumer banking and branch banking.

People Diversity:

Being an introvert personality, I never had the precious experience in people

diversity. During this internship period, I interacted with so many people both

customers and employees with diverse personalities and behaviors, different age

groups, some far too senior and experienced that it has given me confidence to

interact efficiently with people.

Tactful communication; a MUST

From this internship program, I have realized that the skill to communicate tactfully is

the thing we should learn and polish, especially in dealing with customers. It is not

the most important if you don’t have the required skills at this moment. Rather, being

creative in problem solving and being a quick learner are the keys to success in the

fast growing banking sector.

Career Awareness

This program was a career awareness program as well in the sense that it helped me

in identifying my interests. What I have identified is that I want to do some thing

dynamic and not an assembly line kind of job. Moreover, I have found that in

Pakistan, it doesn’t matter what is your field of education meaning that as long as you

have the slightest idea of job in hand and you are an active learner, you can work

wonders.

Problem Encounter

Difficult time in getting used to new Environment

Initially I had difficult time in mixing with organization members and felt

uncomfortable in that new place with new people. However, after some time, I

became a part of it just like everyone else and felt completely comfortable.

Uses of Terminology

The other major problem was the hectic routine of the bank. It made me uneasy at

first but with the passage of time I became used it. I had to face a great difficulty in

understanding bank’s terminology by the knowledgeable guidance of the staff I was

able to overcome the problem to a satisfactory level.

At the completion of six weeks business internship in ZTBL As an internee draws the

following:

I am able to work in financial institutions.

Deal with various types of people have different attitude

As an internee draws the following about ZTBL:

The premier financial institution geared towards the development of agriculture sector

Enrich Agri-relation ship of 40 years

Lack of commercial mindset

Around 600 pending disciplinary cases

Potential for bringing huge uncultivated areas under production

Potential for expansion through mobilization of rural and urban savings

Reshaping and reconstructive.

Appendices

References

Books Referred:

Cost accounting by Magz

Managerial Economics by Peterson

The World Wide Web

http://www.google.com

http://www.ZTBL.com .pk