Ztbl Report

1.1 Background of Zarai Taraqiati Bank

The Zarai Taraqiati Bank Limited is the premier financial institution geared towards the

development of agriculture sector by providing financial products and services to their

customers. It is a common practice at universities during the completion of the masters and

bachelors program to attain practical experience in different fields. Students are required to

undergo an internship program of two months to fulfill the requirement for their degree

completion. The selection of the firm is based on the choice of the student. The institute requires

an internship report based on the theoretical and practical learning of the student. The Internship

is the bridge between academic qualification and professional career of “fresh graduates”.

This internship report is mainly focused on the working of the Finance and Accounts Division of

the ZTBL. Moreover, the internship is a unique aspect of education that integrates study with

planned and supervised career-related work experience. The students are involved as non-paid

“authentic employees “receiving academic credit for work experiences. The purpose of the

internship program is to develop and strengthen the student’s educational and career preparation.

By doing internship in any organization that obviously exposes the interpersonal relationships

not only with employees but also with supervisor that are essential in obtaining a successful and

satisfying career. This background of the study is mainly focus on the performance, functions

and objectives of the Finance and Accounts Division of the ZTBL and its internal working and

operations of this division. While, the internship is any experience where students learn by taking

on responsible roles as workers in organizations and observing and reflecting on what happens

while they are in the workplace.

It provides many advantages to student that helps him throughout his life. Some advantages of internship program are given as under:

To gain professional experience and receive academic credit

To enhance independence, responsibility and self-confidence

To Interact and collaborate confidently with employees

To share ideas with one another.

INTERNSHIP REPORT Page 1

To translate classroom knowledge into the professional work environment and to make plan,

how to carry the activities.

1.2.1 Board of Director

Syed Yawar Ali Chairman

Syed Talat Mahmood President/CEO

Mr.Saeed Ahmad Director

Mr.Majyd Aziz Balagamwala Director

Mr.Zia-ul-Mustafa Awan Mr.Abdul Bari Tareen


1.2 Corporate Information

Director Director

Mr.Asif SharifDirector

Mr. Muazam AliCompany Secretary

1.2.2 Board Audit Committee

i. Mr. Zafar Iqbal Chairman

ii. Dr. Amir Muhammed Member

iii. Dr. Khalid Ahmad Khokhar Member

iv. Mr. Abdul Wajid Araim Member

v. Chief Internal Auditor Secretary

1.2.3 Board Human Resource

i. Mr. Abdul Wajid Arain Chairman

ii. Mr. Muhammad Iftikhar Khan Mohmand Member

iii. Dr. Amir Muhammed Member

iv. Dr. Khalid Ahmad Khokhar Member

v. President, ZTBL Member

vi. Head Human Resource Secretary

1.2.4 Board Risk Management Committee

i. Dr. Amir Muhammed Chairmanii. Mr. M.Yaqoob Vardag Member

iii. Mr. Muhammad Iftikhar Khan Mohmand Memberiv. Mr. Zafar Iqbal Memberv. Mr. Muhammad Nawaz Shah Member


vi. Head, RMD Secretary

1.2.5 Information Technology (IT) Committee:

i. Dr. Khalid Ahmad Khokhar Convener ii. Mr. Mahmood Nawaz Shah Member

iii. Mr. Zafar Iqbal Memberiv. Mr. Muhammad Iftekhar Khan Memberv. Mr. Muhammad Yaqoob Vardag Member

1.3 Organization Hierarchy Chart

The organizational structure of the ZTBLis shown in below diagram;


1.4 Vision, Mission & Values

1.4.1 Vision Statement

To develop and operate the ZTBL as a commercially viable bank with focus on rural and agriculture finance

and to serve the needs of farming community, by delivering financial products and services.

1.4.2 Mission Statement

To play an 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, products& services, and to promote career development opportunities for

increasing professionalism, technical proficiencies & trainings of employees.

1.4.3 Core Values

Loyalty to ZTBL Vision and Mission

Integrity and Meritocracy

Quality and Efficiency

Well-Trained Human Resource

Credit with Technology

1.5 Scope of the Study

The scope of the conducting this study is given as under:

It is a compulsory requirement for the award Master’s Degree in Business Adminstration

This report is concerned with the performance, functions and objectives of the “Finance &

Accounts Division of the ZTBL” Multan Branch.

It will help the students in making assignments and writing reports on the ZTBL.

It can provide help to the management of the ZTBL in identifying their Strengths,

Weaknesses, Opportunities and Threats.


It can also provide assistance for the students in seeking annual reports for the purpose to

calculate and interpret financial ratios, in order to check the liquidity, leverage and

profitability of the ZTBL.

Furthermore, students are able to analyze the human resources & analyze the marketing of

products and services schemes that the ZTBL provide his customers.

1.6 CORPORATE OBJECTIVES:

To assist rural community, particularly the small farmers, in raising their productivity and income

levels through timely delivery of credit, advisory and ancillary services.

To build the image of the ZTBL as a proactive, client friendly, financially & operationally sustainable

with indigenous product deployment.

To establish and provide backward and forward linkages to strengthen the agriculture and industrial

sector.

The ZTBL can engage in public and private, wholesale and retail partnership to deepen outreach and

reduce operating cost.

The ZTBL act as rural commercial bank to mobilize rural capital formation and to commercialize the

agriculture sector by delivering the true value of credit to the client.

Brief introduction of the branch where I did my internship:

I have completed my internship at Zarai Taraqiati Bank LTD Abdali Road Multan.

The Zarai Taraqiati Bank LTD Abdali Road Branch has many customers like Farmer as well

as outside of the area. Abdali road branch has good value in the area. It has good assets worth

and good profit ratio.

Starting and ending date of internship:

I started my internship from June 29, 2015 and end of internship was on August 07 , 2015 at

ZTBL Multan Abdali road branch. My internship duration is of 6 weeks. I feel very lucky

myself as internee there as all the staff is very cooperative and friendly to me in my internship


duration. Because of this I learn and achieve all the knowledge very easily and free of burden.

Branch Staff:

Mr. Ch, Muhammad Saeed (Branch Manager)

Mr. Musharaf Waseem (Deputy Manager)

Mr. Ammar Yasir (AMO Operation)

Mr. Kamran Saquib (Officer Grade 3)

Mr. Rana Waqar Ahmed (Senior Assist)

Mr. Mubasir ahmed(Cash Officer)

Mr. sarfraz (AVP)

1.7 Name of Departments in which I got training:

Credit Administration Department(ACD)

Account opening Department(AOP)

Budget and Fund Reconciliation Department(BRD)

1.8 ZTBL Banking Products & Services

1.8. Products offered to Meet Finance Need of FarmersZarai Taraqiati Bank Limited (ZTBL) is a specialized bank providing agricultural credit in rural areas of the country. Pakistan is an agricultural country and near about 60% of its population is working directly or indirectly related to agriculture industry. But instead of being an agricultural country Pakistan is still not gaining benefits from this sector which it can gain. Some time we even does not able to fulfill our food requirement and sometime we have bumper crop but does not have facilities to store them properly, in this way we are wasting our resources. To gain benefit from agriculture sector it is required to be modernized to increase the per acre production and also to build warehouses to store. The main hindrance in the modernization of agriculture is the unavailability of finance. The other financial institutions feel reluctant in giving finance to farmers due to high level of risk in the production of this field. To facilitate farmers and to help in modernization of agriculture sector the government has established this bank which is contributing its part in achieving government objective from many decades. ZTBL is offering a blend of products to fulfill the need of different types of customers.


1.8.1 Types of Loans Advanced

1. Short Term LoansShort term loans are loans for shorter period of less than a year. It includes, crop production working capital loans recoverable in lump sum commencing after the harvest/marketing of respective crops and within maximum period of 12 months.

2. Medium Term LoansMedium term loans are for a period of more than a year but less than 5 years. In includes, dairy farming and livestock etc. The installments of these loans are usually paid able in quarterly or half yearly basis.

3. Long Term LoansLong term loans are for a period of more than 5 years. These are development loans which require large amount and also need some time to show its result in the shape of better production. It includes loans for tractor, agricultural machinery, poultry farming, godowns and orchard in yearly/half yearly installments within maximum period of 8 years.

1.8.2 Deposit Schemes

i. Current account Rate of Return

Nill Terms & Conditions

1.Initial deposit is Rs.200/- 2.Un-remunerative charges @ Rs.50/- pm shall be deducted on half yearly basis.

ii. PLS-SAVING A/C (Regular Saving A/c) Rate of Return

6.5% pa

Terms & Conditions 1. No initial deposit.2. Max. 8 debit transactions during the month are allowed for calculation of profit.3. Profit shall be calculated on the basis of average balance during the month.4. Profit shall be credited to a/c on half yearly basis.

iii. BUSINESS DEPOSIT A/C (Special deposit A/C) Rate of Return

6.5% pa

Terms & Conditions


1. Initial deposit is Rs.10,000/- 2. Profit shall be calculated on the basis of daily product. 3. No limit of withdrawals. 4. Profit shall be credited into account on half yearly basis.

iv. ROZANABACHAT A/C (Special deposit A/C) Rate of Return

6.5% to 7.5% pa (slabs placed )

Terms & Conditions 1. Initial deposit is Rs.10,000/- 2. No limits of withdrawals. 3. Profit shall be calculated into a/c on Quarterly basis4. Two DDs & two POs shall be issued free of charge during the month if average balance of Rs.2, 00,000/- maintained.

v. BASIC BANKING A/C Rate of Return

Nill Terms & Conditions

1. Min. initial balance is Rs.1000/- 2. It is non-remunerative a/c. 3. Max. two deposit & two chequing withdrawals during a month are free of charge

vi. PLS-TERM DEPOSIT ( slab rates per circular ) Rate of Return

6.5% to 7.5% pa (slabs placed) Terms & Conditions

1. Min. initial balance is Rs.1000/-. 2. Minimum holding is 3 months. 3. PLS saving a/c rate shall be applied in case of premature encashment & after maturity. 4. Request of roll over shall be made in sufficient time before its maturity otherwise it will be transferred to TDR Matured a/c .

vii. ZARAI MUNAFA TERM DEPOSIT CERTIFICATE (ZMTDC) Rate of Return

7.5%

Terms & Conditions 1. Initial deposit if 0.100 million. 2. Scheme is restricted for Bank employees & their relatives. 3. Profit shall be paid at maturity. 4. Premature encashment OR after maturity PLS-Saving a/c rate shall be applied.

viii. MUSTAQBIL MEHFOOZ A/C


Rate of Return7.5%

Terms & Conditions 1. Short term deposit scheme for a fixed period of 3 and 6 months. 2. Min. deposit is Rs.50,000/-. 3. In case of premature encashment OR after maturity PLS-saving a/c rate shall be applied.

ix. ZARAI TERM DEPOSIT CERTIFICATE (ZTDC) Rate of Return

7.10 % pa Terms & Conditions

1. Minimum deposit is Rs.25,000/- 2. Scheme is for a fixed period of 3 years. 3. Minimum holding is 3 months 4. If depositor maintains Rs.2,00,000/- for at least months he will be elibible to get agri. Loan from ZTBL without any appraisal fee

x. MINFA REVOLVING FUND DEPOSIT A/C. (MRFDA) Rate of Return

7.5% pa Terms & Conditions

1. Minimum deposit is Rs.500/- 2. Introduced for village organizations only.

xi. MINFA SPECIAL SAVING DEPOSIT A/C (MSSDA) Rate of Return

7.5% pa Terms & Conditions 1. Minimum deposit is Rs.500/- 2. Introduced for village organizations only.

1.8.3 Loan Schemes

ZTBL is offering the following loan schemes to the farmers.

Supervised agriculture scheme:

Under this scheme agriculture loans are given for short, medium and long term loans up to Rs.

1.00 million per borrower/per case. The loans are sanctioned for In Fats, livestock, orchard,


tractor, agricultural machinery, tube well and irrigation facilities etc. under the scheme besides

provision of credit, information are provided to the farmers for planning the farm, production,

guidance for implementation of the scheme, marketing and repayment of loans.

Zarkhaiz (one window operation)

For timely and conveniently provision of credit to purchase inputs, loans are provided to the

borrowers under One Window Operation being conducted twice a week during Rabi and Kharif

seasons. Applications processed on the same day whereas sanction payments are made within

three days at Branch. For Rabi Crops one window operation from October to January and for

Kharif Crops from April to September each year which is extendable as per requirement of

particular area.

Sada Bahar Scheme

For providing timely input loans for crops and working capital for poultry and fishery etc, the

Bank has launched a Sada Bahar Scheme. Assessment for inputs requirements for the whole year

is made at the time of first application. The amount so assessed is treated as Revolving Limit

provided it is within the security limit. The Managers are authorized to sanction such loan limits

up to Rs.O.500 million. Scheme’s main features are as under:

Revolving Credit Limit is fixed to cater production credit and ancillary requirements of the farmers during one year period.

The documentation once completed remains applicable for three years with yearly cleanup/renewal without any further documents.

The borrowers can draw the credit in lump sum or in installments according to his requirement.

Like-wise he can repay in lump sum or in installments during the year when his cash position allows him.

Pass Book containing transactions in his SBS Account is supplied to every borrower free of cost.

Tea financing scheme

In order to increase the tea cultivation in District Mansehra, Swat, Mutta, Shangla par and Dir in

Malakand Division, tea financing scheme has been introduced which would not only save the

hard earned foreign exchange but would also help improve the socio-economic condition of the

inhabitants of the area. The salient futures of the scheme are given as under:

Maximum Credit Ceiling of Rs.60, 000/- per acre has been fixed.

Farmers owing land up to five acres are eligible to avail loans.


Credit will be given in 3 installments: first year Rs.30, 000/-, 2nd year Rs.15,000/- 3rd

year Rs.15,000/- provided the disbursed loan is used properly.

The credit would be repayable within 1 year with 6 years grace period with prescribed

markup of 9% per annum. Rebate of 1 % will be allowed in mark-up on timely

repayment and proper utilization of the loan.

1.8.4 Repayment PeriodsS. No. Types of Loans Recovery Period

1 Short Term Loans Crop production working capital loans recoverable in lump sum commencing after the harvest/marketing of respective crops and within maximum period of 12 months.

2 Medium Term Loans Dairy farming and livestock etc. In yearly/half yearly/monthly installments and within maximum period of 5 years.

3 Long Term Loans Tractor, agricultural machinery, poultry farming, godowns and orchard iIn yearly/half yearly installments within maximum period of 8 years and. above.

1.8.5 Recovery Procedure

A) Recovery Schedule Recovery schedule in each loan case as per terms of sanction of loan is fixed and

communicated to the borrowers after disbursement of loan. In case of default or failure in repayment of any installment on due date the mark-up shall

continue to be charged and last installment due to this may differ from the amount of installments fixed at the time of disbursement.

b) Issuance of Notices Demand notice is issued before the due date of every installment. A Legal Notice is issued one month after the due date informing the borrower that if the

amount is not repaid within next one month, further legal action will be taken to recover the dues.

c) Legal Action Legal action can be initiated against the defaulter if loan is not repaid even after expiry of

legal Notice period. Where the court in bank's favour has decreed a case, account is to be settled by recovery

of amount from the auction of the mortgaged property. The bank may purchase the mortgaged property if considered feasible to dispose it off

later on through auction or in any manner deemed fit for getting the best price.


The bank may dispose off the mortgaged properties of defaulters for satisfaction of its dues with out intervention of courts under Financial Institutions (Recovery of Finances) Ordinance 2001.Rescheduling of Loan Repayment Facility .

d) Rescheduling of Loan Repayment Facility ZTBL allows rescheduling of repayment of installments to its borrowers in order to

maintain credit discipline and to mitigate their genuine problems in real hardship cases and in areas declared as calamity hit by the respective Provincial Governments

The Rescheduling facility is to be considered by bank on case to-case basis and is to be allowed on borrower's request only.

The relaxation in recovery period shall not be allowed beyond one year in any case. The borrowers shall have to execute a supplementary loan agreement on Non Judicial Stamp Paper of appropriate value to give legal cover to extended period. The borrowers shall have to pay the return for the extended period.

d) Down Payment for Rescheduling of Loans

Rescheduling Number Rate of down payment as against due installments to be rescheduled

1st 10%2nd 20%3rd 30%

1.8.3 Types of Security

Immovable Property

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 and Guarantees


1. Unconditional Bank guarantee from scheduled BanksUp to maximum amount of an un-conditional Bank guarantee after keeping sufficient margin for un-paid mark-up, cost, charges and expenses.

2. Guarantee issued by Central or Provincial GovernmentFull amount of loan plus return and other charges.

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

4. Defense Savings & FEB Certificates 75% of value of certificates presented as security.

5. Fix Term Deposits Receipts

85% of face value of deposits receipts.

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

7. Life Insurance policies

85% of surrender value

8. Pledge of Potatoes/Seed Potatoes price or market value which ever is less

Up to 75% of Govt. support.


Chapter # 2 My Grooming

2.1 Name Of the Departments in Which I Got Training

Brief Introduction to Departments:

2.1.1“CREDIT ADMINISTRATION DEPARTMENT”

INTRODUCTION OF CAD:

The CAD is abbreviated to “Credit Administration Department”. This department maintains the

files and proper records of the loans . In this department, I was attached actually to maintain the

loan case files, and check CIB reports.

Duties OF CAD:

CAD is working smoothly in branch to check the disbursement/ Lending property against the security

of the Bank.

CAD responsibility is to hold the loan case files properly and safely.

CAD is responsible to implement the SBP regulation Standards.

CAD officer is responsible to maintain the clear CIB ,ORR , NIVCS in loan case files.

2.1.2 Account Opening, and locker Department

I was learnt in how to account open and locker facility. To provided me complete knowledge

about the process of account opening, and locker and also explain which way to deals with the

different types of customers.

1 ZTBL Locker 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

1 Islamabad Branch

2 Main Branch Lahore

3 Peshawar Branch

4 Gujranwala Branch

5 Faisalabad Branch

6 Multan Branch

7 Sahiwal Branch

8 Sargodha Branch

9 Khan Pur Branch

10 Shafi Court Branch

11 Main Branch Gulshan-e-Johar

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/-

Life Time Locker Facility

On lump-sum payment of locker rent for ten years entitle the lessee to avail the locker facility for


life time, without key deposit.

2“ACCOUNTS OPENING DEPARTMENT”

Opening of Current Account

In the ZTBL, the current account usually opened only when the person comes there for a loan. On the approval of loan, his sanctioned amount is usually credited to his current account. The procedure of opening of Current Account is not very complicated. The following are the main point in the opening of a new account:

1. Acquiring original CNIC2. Filling the Current Account Form3. Filling of Know Your Customer4. Filling of Current Account Card5. Registering name in the “Current Account Register”, (Issuance of A/C No.)6. Filling of deposit slip of starting amount7. Signing by AMO and Manager8. Issuance of Cheque book9. Opening account in the ledger of bank

i: Acquiring Original CNICIt is mandatory to check the original CNIC of the person before opening of current account. In the ZTBL it is routine to open account when manager sanctioned and signed the amount of loan. Because at that stage it becomes essential to have an account in the bank otherwise the amount of loan will not be paid.

The other documents required to attach with the forms are:

2 recent pictures Copy of CNIC.

ii: Filling Current Account FormAfter obtaining original CNIC the form for current account is filled with the information written on the CNIC. The form includes the following information:

Type of account Branch Name Branch Code Name Father Name CNIC Number


Address Occupation Nationality Contact number Date of birth Marital status Mother name Name, CNIC, Contact of MCO who knows the person personally Next of Kin (The person who will have right to operate the account in the event of the

account holder’s death or any other mishap) Starting amount

iii: Filling of Know Your Customer FormThe Know Your Customer form is also attached with the current account opening form and contains the following information:

Name Account number CNIC number Address Purpose of opening of account Monthly income Source of income Type of customer (i.e. Walk in) Public figure Usual mode of transaction (i.e. in cash, cheque) Etc.

iv: Current Account Specimen Card

Name: Account No.Adress: Type of Account:

Name of Account Holder Name of Account Holder

This side is used to write the name of account holder both in Urdu and English.

This side is used to obtain the signatures of the account holder for verification of cheques in the future if required.


Signing Authority:

One side is used to obtain the signature of account holder; I usually take 3 signature of him in the right side of card. While the left side of card is used to write the account holder name in both Urdu and English.

2.1.3 “BUDGET & FUND RECONCILIATION DEPARTMENT”

INTRODUCTION OF BFRD:

The BFRD stands for Budget & Fund Reconciliation Department. This department is also known

as Budget & Fund Management Department. In this department, I have learnt that how to

respond for application of note received from branch or any department, and issue the fund or

budget to the needy department or branch. This department maintains budget and fund for

branches and other needy departments. The BFRD receives the intimation and they transfer fund

and to receive the surplus fund form the branches. The branches send their records to BFRD.

This department monitors their record which receives from zonal offices and branches in order to

fulfill the requirements. Here ZTBL remits the needs of the branches through commercial banks

such as, National bank of Pakistan, Habib Bank Limited, United Bank Limited, Allied

Bank Limited and Muslim Commercial Bank Limited However, this department prepares the

budget for upcoming financial year or monitors the previous budget and to create funds. The

main aim of this department is to preparation of financial plan for bank’s credit limits, funds

review and their application.

A budget is a road map that facilitate where one is and where one want to goand how can one go

to one’s desired goal point. While, budgeting is an effective toolof planning and control

exercised in the ZTBL to help management, in order to getthe desired goals of stakeholders’

value enhancement. However, budgets are used for, owner oversight, goal focus and financial

control. The main purpose of budget is to plan, communicate, motivate, control and evaluate.

The more clear, accurate and wellthought out budgets in the beginning the more likely you will

be able to:

To adjust plans, activities and spending as needed.


To spend money cost-effectively.

To reach the specific goals you have set.

To strength the internal control system.

To analyze, compile report and to manage funds. Moreover, the main sources of budget

are primary & secondary data, treasury &treasury data, annual reports…..etc

OBJECTIVES OF BFRD:

To arrange adequate resources for maintenance of adequate liquidity for efficient credit

disbursement.

To reconcile budget and fund in order to enhance the value of stakeholders.

Timely discharge of liabilities and all operation of the ZTBL.

FUNCTIONS OF BFRD:

To developing policies, procedures and standards for budget planning and analysis.

To coordination with administrative and governance groups on the issues relating to the

budget.

1. This department is based on the strategic planning of the bank arranging budget estimates

from all over the bank.

2. Time horizon is planned for the preparation, approval and circulation of budget.

3.The call circular of budget is reviewed and finalized, which covers all guidelines and

instructions for preparation of budget proposal is issued along with budget performance to all

divisions, departments, zonal offices and branches of the ZTBL Head Office.

4. The budget criteria is prepare for budget allocation under revenue and capital expenditures.

Presently the budget allocation under major head is made on the following criteria:

Stationary and communication


Traveling Expenditure

Repair and maintenance

Salary and allowance

Rent, taxes, insurance and expenditure

Revenue and investment on securities

5. Approval of budget criteria recommended by the Budget Criteria Committee.

6. Examination & scrutiny of budget proposal received from all divisions, departments, zonal

offices and branches of the ZTBL Head Office and allocation of funds under revenue and capital

expenditures in accordance with the approved budget criteria.

7. The consolidation, computerization, verification and rectification of finalized proposed budget

data of all divisions, departments, zonal offices and branches of the ZTBL Head Office.

8. Preparation of the Budget Agenda, that contains revised estimates of current year and

proposed budget estimates.

9. Presentation of the Budget Agenda for approval from the Budget Criteria Committee,

President and the BOD.

10. In final step, proposed budget estimates approved by the BOD are circulated to all zonal

offices and branches of the ZTBL Head Office for implementation through a budget circulating

letter containing detailed instructions for proper utilization of funds and judicious spending.

2.2 Project activities at Organization

Assignment No. 01:

During worked in advances department Mr. Musharaf Waseem assigned me the duty of checking

the customer business accounts statement like balance sheet and profit/loss statement items to

calculate the percentage of previous 2 year current ratio are favorable or unfavorable, net profit,

expanses and sales monthly and yearly are increased or not year to year and also property, plant


and equipment depreciation values.

Assignment No. 02:

During my work in accounts opening department Mr. Kamran Saquib assigned me the duty of

checking the files of previously opened accounts for any type of discrepancies like each account

opening form are attached with SS card, CIF form, CNIC copy and also checking the signature

and stamps by the customer and CSR officer etc. It was because an audit of these files in the

coming month is scheduled. Almost above 10% of the application forms were having

discrepancies of different types.

Another duty assigned me daily collect daak . Then open the daak mosty daak was wapda bills a

which are responded on the online system software (CFOYCS).

Making Entries in the LedgersIn ZTBL the record of current accounts and loans are manually maintained. There are many records which have been computerized but still the hand written ledgers are used. Making entries in the Ledgers requires simple concept of debit and credit. However the understanding of banking practices are required so that to follow the exact way of recording any transaction because usually the column written on the ledger books are not used for the purposes for which they are made. The employee usually has established their own way of writing transactions in the ledgers the way in which they feel easy. I have found many columns unused in the ledgers of Sada Bahar Loan Scheme or they have been used to write other information which is different from the heading of columns.

Writing of VouchersVouchers are the important evidence of all the transactions takes place in the bank. In the accounts department of ZTBL it is the back bone, every transaction of bank with reference to cash required a voucher to be drawn against it.

The vouchers are of three types:

1. Debit Voucher (Receipt of Amount)2. Credit Voucher (Payment)3. Transfer Voucher

1. Debit VoucherDebit Voucher is used when bank received any amount from anyone. The example is of deposited amount by the depositors, the payment of loan by the loanee etc.


2. Credit VoucherIt is used for the payment of any amount by the bank to anyone. Like the cheque drawn on bank, the expenses of bank itself etc.

3. Transfer VoucherAs the name shows it is used when the amount is required to transfer from one head to another. The example is the transfer of utilities bills accepted by the bank to the respected utilities provided company (Mepco, PTCL etc.). The transfer of return to the income account of bank, it is also used when the loan is sanctioned so it is required to transfer amount of loan to the loanee account.

Another use of transfer account is to correct mistakes in the ledger, for example if an account is mistakenly debited in place of another account. So the transfer voucher can be written to credit the first account and debit the second one to correct the mistake.

In the end of day all the vouchers written during the day is required to be write down in the daily Scroll (which will be discussed later on) and then all the vouchers of day is sewed and then sealed so that no new voucher can be placed or removed from the record. These vouchers used to store in record room and they keep piling up there.

Every voucher has at least two copies, one for the customer and one for the bank record. For easy recognition the vouchers are made of different colors.

Debit Voucher (Have three copies and in white color) Credit Voucher (Have two copies and in blue color) Transfer Voucher (Have two copies and in yellow color)

2.3 Personal Learning Objectives

My internship at Bank ZTBL was a positive experience. This experience gave me a chance to

analyze and change myself for the better. An internship program provides me an opportunity to

bridge what I learn in the classroom with real life job requirement. As we know that when any

one enter into an organization for internship or for job, most important thing is his/her

communications skills. So the thing that helped me and boosted my confidence was


communication skill. As we have studied “Business Communication Skills” and presentation

during the MBA program, it gave me the confidence to speak in front of many people. While

working as an internee in the ZTBL, I observed that the first rule of game is to respect your

customer. As an employee one has to listen to whatever customer has to say with full attention

and patience. Moreover the right tactics for convincing customers on your view point requires

great communicational skills. The subjects such as Finance, Accounting, Statistics, Business

Math…etc that I studied during my MBA program that help me to understand the operations

&functions of the Finance & Accounts Division of the ZTBL.

During my internship I improve my soft skills, expand knowledge of related field and gain

experience by work under the highly experienced person, to see the norms and value of the

organization, which may be called the culture of the organization. Actually all the organizations

have their own culture, norms and value under which the organizations exist. In short, I am really

impressed with the friendly and challenging culture of the ZTBL having such a high level of

professionalism, task orientation and event celebrations like 14th August and 6th September. As

internee in the ZTBL, I utilize my communication skills, abilities, confident; what I have studied

till 7th term & now it is time to convert the theoretical knowledge into the practical knowledge

because I will go in the practical life after some time, so we must aware about the internal

working of organization.

2.4 Comparison of practical experience of internship and teaching

method

Teaching method just tell us the way to do the work and gave the knowledge of work and but

when I applied it in practically it is something different thing. Theoretical Knowledge that I get is

not so much different from the practical knowledge, we just need to implement it.

2.5 Improvement knowledge and skills

I learn in the classroom with real life job requirement. As we know that when any one enter into

an organization for internship or for job, most important thing is his/her communications skills.

So the thing that helped me and boosted my confidence was communication skill. During my


internship I improve my soft skills, expand knowledge of related field and gain experience by

work under the highly experienced person, to see the norms and value of the organization, which

may be called the culture of the organization. Actually all the organizations have their own

culture, norms and value under which the organizations exist. In short, I am really impressed

with the friendly and challenging culture of the ZTBL.

CHAPTER # 3

Ratios Analysis

3.1 RATIO ANALYSIS

The term “Ratio”means“the relationship between any two variables”, while analysis is a tool,

which is used for checking the over all performance of any organization. In other words, the

ratios analysis is used to identify the financial strengths and weaknesses. For this purpose, we

use ratio analysis of financial statements such as, balance sheet and income statement. However,

“ratio analysis is a tool, which involves methods of calculating & interpreting financial ratios to

analyze and monitor the firm performance”. There are many ratios such as liquidity

ratios, profitability ratios, debt ratios, activity ratios. For this purpose, we use data from 2012

annual reports of the ZTBL, to check the liquidity, leverage and profitability.

3.1.1 Liquidity Ratios:

It is measured by its ability to satisfy short-term obligations when they become due. There are

many ratios of liquidity such as, current ratio, quick ratio and networking capital, which is given

as under:

The Current Ratio:

The calculation of current ratio of the ZTBL from 2012 is calculated and interpreted as under:

YearsCurrent Assets

Current LiabilitiesCurrent Ratio

2012 122,514,921 0.24


98,092,019

Quick Ratio:

The calculation of quick ratio of the ZTBL 2012 is calculated and interpreted as under:

YearsQuick Assets

Current LiabilitiesQuick Ratio

20129,944,704

98,092,0190.10

Net Working Capital (NWC):

The calculation of the NWC of the ZTBLfrom 2012 is calculated and interpreted as under:

YearsTotal Current Assets-Total Current Liabilities

Net Working Capital

2012 122,514,921-98,092,019 24,422,902

3.1.2 Leverage Ratios:

It measures the firm's ability to repay long-term debt that is used in a firm’scapital structure.

There are many ratios of leverage; i.e. debt ratio, total debt to networth ratio & time interest

earned ratio which are given as under:

Debt Ratio:

The calculation of debt ratio of the ZTBL from 2012 is calculated and interpreted as under:

YearsTotal Liabilities

Total AssetsDebt Ratio

2012 98,092,019 0.800


122,514,921

Total Debt to Net Worth Ratio:

The total debt to net worth ratio of the ZTBL, 2012 is calculated and interpreted as under:

YearsTotal Liabilites

Net WorkingDebt to Net Worth Ratio

201298,092,019

12,522,4417.833

Time Interest Earned Ratio:

The time interest earned ratio of the ZTBL from 2012 is calculated and interpreted as under:

Years

Earning before interest and taxes

Interest Expense

Time interst ratio

20123,321,006

4,783,0660.69

3.1.3 Profitability Ratios:

This ratio examines the relationship between the profits made on tradingactivities against the

sales. It is the indication of business ability to use capital, labor & management to generate

profit. There are many ratios of profitability, such asROA, ROE and EPS which is given as

under:

3.1.4 Return on Assets (ROA):

The return on asset of the ZTBL from 2012 is calculated and interpreted as under:

Years Net Income ROA


Total Assets

20122,642,944

122,514,9210.021

3.1.5 Return on Equity (ROE):

The ROE of the ZTBL from 2012 is calculated and interpreted as under:

YearsNet Income

Total AssetsROE

20122,642,944

12,522,4410.211

Earnings Per Shares (EPS):

The EPS of the ZTBL is calculated &interpreted as under:

Interpretation of EPS:

Basic EPs 1.734

Diluted EPs 1.734

3.2 Swot Analysis

3.2.1 Strength:

ZTBL has brand name in agricultural loaning.

It is first and large financial institution established in Pakistan to promote agricultural financing.


The bank has more than 350 branches throughout Pakistan and has presence in all the provinces of the country which enables it to capture and facilitate a large number of customers.

The bank enjoys sovereign guaranty of Federal Government that covers its debt obligation to State Bank of Pakistan.

The Bank has the most experienced and the least experienced staff, which is a good combination of experienced heads and exuberance of youth.

The bank has ability to launch successful products for agricultural industry due to know how of the agricultural system of the country.

Mobile Credit Officer is the unique concept which is helping in remaining more near to its customers and also helps in recovery. Concept like these helps bank in safeguarding itself in the risky adventure of financing to small farmers.

3.2.2 Weaknesses ZTBL have not introduced any Islamic product in financing. Islamic banking is becoming

popular in these days and to sustain and increase the number of customers every bank is felling need to start offering Islamic Products. This ZTBL requires noticing this changing trend.

In spite of the presence of technology many jobs are done manually. Almost all other bank’s operations have been computerized but ZTBL is still working on manually written ledgers etc.

Like other Government institutes the red tap dilemma also exists in ZTBL.

The staff is not motivated because the promotion mechanism is based on experience rather than on the performance of the employees. This is the reason that usually employees stop giving their full efforts after knowing the reality that their performance pays a less role in their success.

The average loan disbursement amount is 85,000 to single person which is not a big amount. Usually the loan obtained by the loanee can be used to meet working capital requirement only it cannot be used to fulfill the dream of modernizing of agriculture sector.


There is a lack between the planning of head office and the reality of environment because the staff at high level have little know how of the real situation on the ground.

The infrastructure of the bank is also based on old style; the bank is not refurnishing its branches like the other banks have done in this decade.

The situation at branch level is not good, there is lack of even furniture, fans etc.

3.2.3 Opportunities The bank started computerizing its operation which if completed will result in increase of

the bank performance. The impact of computerization can be seen from the result of recovery of 2009 which is 89%. The computerized system helps bank in reducing fraud.

Due to increase in the government attention toward the agriculture sector it is expected to see the role of the bank increasing in the near future. As a result of different steps taken by the government regarding the betterment of the agriculture, small borrowers are attracted to get the financing and to start business. So, the ZTBL has an opportunity to attract the customers by giving them more attracted schemes.

They have wide area network in all over the Pakistan, so ZTBL can make it possible the fast delivery of funds to rural areas.

The flood of 2010 is challenge for the whole country. Because the most effected people are farmers so the bank has a chance to increase its reputation by utilizing its full resources to help them. It is also expected that the relief which the government may provide to them will also be delivered through the bank in the form of relaxation to the loanees.

3.2.4 Threats The biggest threat in the banking sector is the continuous downfall of the country

economy since the last few years.

Sudden rise and fall in the trade and industry conditions and stock exchange business of the country also adversely affect the growth of banking sector.

The default ratio of customers who are availing the credit facilities from the ZTBL can rise due to the economic recession in the country.

Government type of working style is also a threat to the bank which requires to be changed to keep the banking growing.


Many commercial banks also started agriculture loaning scheme so it is expected that in the future the farmers will have more choices to have finance from which will definitely affect the customer base of the bank.

Political unrest is also a threat for the bank because it is a government owned bank and the change in government can result a change in the strategy of the government which can affect the plan made by the bank.

Natural Calamities is also a problem, the bigger part of the bank customers relies on the environmental condition. Almost whole of the agriculture industry have threat from the changing environment conditions. The example of 2010 flood is still in front of us those who are affected are unable to pay their loans back.

3.3 Pest Analysis

3.3.1 Political:

Pakistan despite all international and public perceptions, today is a functioning democracy and

gradually there is a change in complexion and composition of legislatures with more educated

people and women (27% of National Assembly and 17% of Senate) entering into politics.

Similarly it helps in designing best strategies to implement that could support the revival of bank

industry. Like in the era of nationalization bank had to suffer as other industry that¶s why that

impact is still found in the performance of this industry.

3.3.2 Economical:

Although banking sector development is important at the early stage of economic growth,

general liberalization presuming a homogeneous bank role may not necessarily promote growth.

The estimated cost structure indicates that state-owned commercial banks are large enough,

while development financial institutions and private banks can expect to obtain cost-saving

advantages by expanding their operations. Since scope economies are significant, portfolio

diversification generally increases bank profits. In addition, privatized banks are the most

efficient, followed by foreign and private banks. Public banks are the least efficient.

3.3.3 Social & Cultural:

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 ZTBL always tried to provide the needy people

loans on soft terms and also helped to eradicate unemployment by providing job opportunities

Recent high growth trends coupled with enhanced spending on social and 2007/2008 has

together begun to pay some dividends.

3.3.4 Technological:

There is Inadequate Communication infrastructure.

Smaller and lowest computer facilities.

Inadequate IT training.

Their must be an efficient IT department.

3.4 FINDINGS

i. The employees working on the same position may have different degrees like

M.Sc.,B.Sc(Hons.), B.Sc., B.A.… etc which devaluate the students of MBA, BBA,

and other well qualified staff. so there is a lack of professionalism/professional staff

in different departments.

ii. There is no job rotation for employees.

iii. The officers of RRD face many problems during preparing different financial reports

which consume lot of time.

iv. The employees are not satisfied with the compensation package; they are just getting

experience and want to shift another organization that has strong position in

the agriculture finance market.

v. The availability of staff training makes employees awareness of work and ZTBL Staff

College is providing effectively.

vi. In the ZTBL, In era of technology and globalization, the understaffing may

cause unnecessary work burden on employees decreasing their efficiency.

3.5 Recommendations

i. Although sill, there is cooperative environment in the ZTBL, but there is a need to


further boost it up. There must be cooperation among staff members, management,

customer and shareholders.

ii. The job rotation of duties of employees should be implemented to

improve the performance which will enhance their skills and confidence.

iii. The motivation level of the employees should be enhanced by increasing

compensation and giving extra fringe benefits.

iv. The advertisements of the products and the services of the ZTBL should be done in a

proper way with a strategic management.

v. To hire creative, skillful and young employees on the basis of

their eligibility and experience but not on discrimination basis. The

recruitments should be strictly on merit basis and induction should be after

proper and extensive training.

vi. To remove the file keeping barriers, which waist a lot of time on searching of fi les.

There should be a proper check and balance. The documentary records

of the ZTBL should be correct and complete.

vii. More rewards and bonus schemes should be for management as well as for

employees and promotion should be based on performance of employees and

not on favoritism.

viii. The ZTBL has developed a web site but still only its front home page has been

developed while other banks have good attractive sites.

ix. The efforts should be made to reduce the employee turnover and

absenteeism rate because it creates misunderstanding and conflicts in

the ZTBL.

x. In order to increase cooperation among employees, the management has to

arrange different parties or get together which will create love, care

and cooperation among employees.

xi. The MIS is still not fully understood by all of the employees. To cope with this

situation, the management should arrange workshops and short courses,

so that the employees can benefit fully from the MIS.

xii. The employee’s attitude and behavior towards work and customers must be

positive and polite way at time of conversation.


xiii. In order to increase the motivation, job satisfaction, and organizational commitment

the organization should give special incentives to all the old as well as new

employees. This may be in the form of promotion or increase in pay or other

facilities provided to them on performance basis.

xiv. The promotions should be given to the employees of ZTBL on the basis of performance rather

than seniority, time period or designation.

3.6 Conclusion

While concluding my report, I would like to say that an internship report normally covers one

academic term and may be either paid or unpaid. The main purpose of the internship is to

develop and strengthen the student’s educational and career preparation. I did my internship at

ZTBL, working in the Finance and Accounts Division. My internship goals included completing

the reports assigned to me, learning about the ZTBL, which is public limited company and also

developing positive relationships with employees. Some of my activities as an internee post in

the ZTBL is to coordinate with employees, working on my giving tasks, performing full

concentration and preparation of my internship reports.

So an internship is an opportunity to gain real-life experience doing the work of an employee in

your career area of interest. Ideally, this experience allows me to try out many aspects of the job

and to apply skills learned in the classroom environment. An internship is any experience where

students learn by taking on responsible roles as workers in organizations and observing and

reflecting on what happens while they are in the workplace

4.2 References

Mr. Ch, Muhammad Saeed (Branch Manager)


Mr. Musharaf Waseem (Deputy Manager)

Mr. Ammar Yasir (AMO Operation)

Mr. Kamran Saquib (Officer Grade 3)

Mr. Rana Waqar Ahmed (Senior Assist)

Mr. Mubasir ahmed(Cash Officer)

Mr. sarfraz (AVP)

Muhammad Usman Javaid

0333-8556007

[email protected]


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