Banking Management

PRESENTERS

THE BANK OF PUNJAB

MAIN OBJECTIVE

INTRODUCTION o The Bank of Punjab was Established in 1989 o It was given the status of scheduled bank in 1994 o BOP is 6th largest bank in Pakistan o It has a network of 272 branches

 BOP  It

is a semi government bank

comprises of 51% shares of government & 49% shares are of the private sector.

 It

has an asset base of PKR165 billion & total deposits of PKR138 billion

 It

works under the instructions of Punjab government.

 All

the bank decision takes place under the bank of Punjab act 1989.

 The

staff strength in BOP is 3860.

VISION STATEMENT

 To

be a customer focused bank with service excellence

CORE VALUES

MARKETS SERVED 

BOP serves the following markets:



Agriculture Market



Household Consumers from middle to low income group



Commercial Consumers from middle to low income group



Corporate Customers

PRODUCTS o The Bank provides all types of banking services o Deposit in Local Currency o Client Deposit in Foreign Currency o Remittances o Advances to Business o Trade o Industry and Agriculture

OBJECTIVES o To be a diversified bank by offering all basic consumer products o To provide solutions for multiple requirements of clients of diverse financial nature. o To grow in banking sector by asset expansion o To manage with the changing trends of the modern day financial market.

STRATEGIES o The bank approaches organizations and then seeks to become the exclusive consumer in terms of consumer financing o Targeting main sector of Pakistan i.e. Agriculture sector by offering “Kissan schemes”

o Making financial management easy through differentiated products o Operations through strong network of branches, backed by advanced computerized and control system

MANAGEMENT STRUCTURE  BOP

is structured on the basis of functions performed by different departments

ADMINISTRATION

CHAIRMAN  He

is appointed by the Punjab government  Chairman is the head of board of the director  He is not the regular employ of the bank  He gave the approval of all the matters & schemes.  All the administrative activities are governed by the chairman

BOARD OF DIRECTORS (BOD) & TOP MANAGEMENT: o There are 6 BOD members at the moment o Country heads and chief executives are highly professional & experienced people o They are developing new policies for bank & are introducing participative management by developing proper

MANAGEMENT

PRESIDENT  President

is also appointed by the government of Punjab.  He is also not the regular employ of the bank.  He is appointed for a period of 5 years only on contract bases.  He is responsible to implement the decisions made by the BOD’s & Administration.

ND 2

PRESENTER

DIVISIONS  There

are about 10 divisions in the bank to perform different jobs.

 Each

division is being supervised by a general manager with chief managers and the division staff

HUMAN RESOURCE DIVISION  The

major jobs of this department are:

 Provision  Staff

of staff rules

appointments

 Training

of fresh staff

 Transfers/Postings

 Promotions  Staff

& degradation

salaries

 Fringe

benefits (bonus, allowances)

 Retirements

FINANCE DIVISION  To

maintain & update all the assets of the bank i.e. buildings & vehicles etc.

 Liabilities

(Account holders money)

 Income  Expenditure

 To

prepare bank’s balance sheet through professional Chartered accountants.

 Maintenance

of accounts with state bank of Pakistan

OPERATIONS DIVISION 

To look after all the operations activities of branches through regional offices head.



Acquisition of premises for the branches.



To obtain branch license from state bank of Pakistan.



Branch construction, renovation and supply of F & F.(furniture & fixtures)

 To

issue procedural and operational/instruction circulars to the newly formed branches to run the branch work smoothly.

 ATM

installation.

LIABILITY DIVISION  To

help the branches for the procurement of deposits

 To

launch different schemes for procurement of deposits. e.g. monthly income schemes, pehle munafa schemes, six monthly profit, yearly profit.

AUDIT DIVISION 

To execute periodical report of the internal affairs of the branch & it is done on daily bases.



To point out procedural irregularities in the branch working & to get them rectified.



Audit is of two types:



Yearly audit



Surprise audit

CREDIT RISK MANAGEMENT DIVISION (CRMD)  To

sanction different types of loans.

 To

approve & renew the loans.

 To

issue instructions regarding loans

RECOVERY DIVISION  For

the recovery of the un-recovered loans.

 Filing

of the legal cases in banking courts.

TREASURY DIVISION  It

works in Karachi & its function is to invest banks money to get profit in short terms .

 It

works under finance division

ESTABLISHMENT DIVISION  Its

major function is for the establishment of the branch.

 It

works under operation division.

INFORMATION & TECHNOLOGY DIVISION  To

make different software’s for the bank.

 To

implement these software's.

 Online

system inspection, ATM maintenance

MARKETING DEPARTMENT  promotional  increase

activities

customer base & help developing BOP’s credibility.

BALANCE SHEET

TOTAL PROFIT  The

bank earn after tax profit of Rs.4.4 billion for the year ended December 31, 2007

 which

was 17% higher than previous year’s after tax p profit of Rs.3.8 billion

 The

shareholders equity has now reached at the level of Rs.15.1 billion from Rs.10.6 billion at the end of last year.

 Earning

per share showed an up-ward growth of 17% and remained at Rs.10.51 per share.

CREDIT RATING  Owing

to sound financial position and consistent outstanding performance of the bank, M/s Pakistan Credit Rating Agency (PACRA) has maintained bank’s long term AA and short term A1+ ratings with positive outlook

THREATS  Economic

growth is likely to be slow, as agricultural growth may slowdown

 Adverse

impact of “Universal Crisis ” can adversely effect .

 Facing

a strong competition by its competitors

RECOMMENDED STRATEGY  Profit

strategy is the recommended strategy So stability in operations & cutting in expenditures would definitely work to enhance financial performance of BOP.

 However

as the situation becomes better, BOP can restart its expansion & growth. BOP should emphasize much on e-banking

FUTURE OUTLOOK  The

year 2009 will prove to be another challenging year for the bank because of tough competition.

 Management

of the bank is committed to continue its efforts for outstanding performance.



? ANY QUESTIONS