The Bank Of Khyber

Internship Report On BoK

CHAPTER # 1 INTRODUCTION INTRODUCTION OF BANK OF KHYBER The Bank of Khyber was established through an Act of NWFP assembly called, “The BoK Act, 1991, “passed in June 1991 the bank was formally launched on November 01, 1991. The Bank of Khyber initially started as a provincial Bank and later declared as Scheduled Commercial Bank by SBP in September, 1994.The initial paid up capital of the Bank was Rs. 153 million, which has now been raised to Rs. 1 billion. SCHEDULED BANK STATUS Since 1994 the Bank of Khyber has come under the regulatory framework of SBP, and operate as Scheduled Bank at the National level. While compliance with requirements and other regulatory restrictions had a negative impact on Bank’s profitability in 1995, however the ensuring growth in business expanded the profits of the bank reaching Rs 85 million in the year 1997.

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Internship Report On BoK

COMMERCIAL AND DEVELOPMENT The Bank of Khyber

is unique because is not only acts as a

commercial bank but also strives to be a development bank through its emphasis on financial support, especially to small and medium sized businesses whose access to credits is not always easy. It has set up a project Finance Department and Micro Business and Rural Development Department for achieving its objectives of encouraging and supporting small and medium sized businesses and bringing them into the mainstream and economic development.1 PURPOSE OF STUDY The purpose of the study is to know the practical implementation of the theoretical knowledge, in an organization. The study on The bank of Khyber was carried out to find the answers to the shortcomings that were observed during the internship. Based on the analysis and findings some recommendations are presented to the management for improvement of its operations. Apart from this, the internship report is an important and compulsory

requirement

for

the

Bachelor

of

Business

Administration Degree.

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Internship Report On BoK

SCOPE OF WORK The internship was done at Bank of Khyber, Head Office, Peshawar. The scope of the study is confined to a HRD department of the Bank of Khyber as I have spent time in Personnel and Establishment department of the Bank of Khyber. The study basically includes area of management , HR department, and to develop the confidence, while interacting with highly qualified personnel in the bank. METHODOLOGY OF THE STUDY The data/ information for the internship report was gathered through different sources i.e primary as well as secondary, a detail of these is given below: PRIMARY DATA The interviews, discussions with management and staff members, briefings given by mangers, questionnaire filled by the staff and my personal observation during the internship were the sources of primary data.

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Internship Report On BoK

SECONDARY DATA The broachers, manuals, annual reports of the Bank of Khyber other booklets of The Bank of Khyber about the rules and procedures, articles from news papers and journals, information on the website of The Bank of Khyber were the sources of secondary data. SCHEME OF THE REPORT The scheme of report shows a brief review of the different chapters of the report. These are as follows: CHAPTER 1: INTRODUCTION It provides information related to the report, it is a brief overview of the study of internship report. It includes Introduction of Bank of Khyber, Purpose of study, Scope of study. Methodology of research and Scheme of report, banking sector in Pakistan, Mission statement and objectives of the bank of Khyber.

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Internship Report On BoK

CHAPTER 2: ADMINISTRATIVE AND FUNCTIONAL SETUP OF BOK It includes different topics related to Organizational structure of the bank of Khyber., Head office, HRD department, Functions of HRD department. CHAPTER 3: PERSONNEL POLICES Recruitment policy, Terms and Conditions of services, Human Resource Development and training, Allowances and Fringe Benefits, Leave Rules, Loans and Penalties. CHAPTER 3: ANALYSIS It includes administrative analysis, personnel management analysis, political analysis and SWOT Analysis of The Bank of Khyber. CHAPTER 4: FINDINGS AND RECOMMENDATIONS This section shows the favorable and unfavorable findings of The Bank of Khyber, that were observed during the internship and recommendations were developed for these weak areas of the bank.

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Internship Report On BoK

BANKING A bank is an Institution, which deals in money. Broadly speaking, Banker draw surplus money from the people who are not using it at the time and lend to those who are in a position to use it for productive purposes. BANKING SECTOR IN PAKISTAN The money market structure in Pakistan comprises the following: 1)SBP 2) Commercial Banks 3) Exchange banks 4)Cooperative Banks 5) Cooperative Credit Banks 6) Saving Banks 7) Specialized Credit Institution. SBP operates as the controller of money market. It is the Central Bank of country. Commercial Banks in Pakistan can be classified in two broad categories: Local and Foreign Banks. Local banks includes: 3 Public Sector 3 Denationalized 2 provincial bank (now allowed to operate nationally) and is newly established bank. The 21 Foreign banks operating in the country focus on a selective clientele due to their fewer branches.

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Internship Report On BoK

BANKING SECTOR IN NWFP There are about 22 Pakistani Scheduled banks operating in the NWFP having 1147 branches or about 15% of all the branches of scheduled Pakistani banks, in the country. In addition 3 foreign scheduled banks with a total of 3 branches are also operating in the province. Historically banks in the NWFP have been able to mobilize substantial amounts of the total deposits of the country. However their share of investment in the province has not been within the province has also increased creating a demand for banking services. A large expatriate community from NWFP residing overseas especially in the Middle East are also offering opportunities to banks operating in the province.2 MISSION STATEMENT The Bank of Khyber being an organization has mission. The mission, documented in the mission statement is as follows: “To increase shareholders’ value and provide excellent service and innovative products to customers through effective corporate

governance,

friendly

work

environment,

and

contributing towards an equitable socioeconomic growth.”3

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Internship Report On BoK

CORE VALUES • Highest quality of service. • Professionalism, Integrity and Team Work. • Innovation and utilization of latest technology. • Corporate Social Responsibility.4 MAIN OBJECTIVES OF THE BANK The BoK was established to: • Meet demand of the business community to have a Bank with its Head Office in the Province. • Have

accessibility

of

local

businessmen

to

senior

management of the Bank for prompt credit decision making thereby accelerating investment in NWFP. • Have maximum utilization of funds raised in the Province for economic development of NWFP. • To mobiles private savings and public funds for diverting the same into productive channels and ensure their availability. • To promote industrial agricultural and soico economic processes through the active participation of private and public sector in the province.

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Internship Report On BoK

• Help under developed areas and create employment opportunities, specially in the rural areas of the province. Further, to guide and assist the people of NWFP serving overseas to effectively and profitably invest their foreign savings in the province as well as in other parts of Pakistan. • Create a diversified and sound portfolio for utilization of idle funds and their investment in the existing and new ventures specially in the pioneering of high-tech agro based export oriented and engineering projects to ensure maximum returns. • Participate and seek of the province in the capital market of Pakistan by way of subscription through locally pooled resources in the leading stock exchanges of the country and eventually paving the way for establishing a stock market in the province. • One of the purpose behind the establishment of BoK was to fulfill the demand of the business community of NWFP, and to have a commercial bank its head office in the province to serve more effectively the people of the province.5

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Internship Report On BoK

REFERENCES

1.The Bank of Khyber, Information Memorandum 1998, pp 3-4 2.The Bank of Khyber, Information Memorandum 1998, p – 2 3.The Bank of Khyber, Annual Report, 2003, p – 4 4. The Bank of Khyber, Annual Report, 2003, p – 5 5.The Bank of Khyber, Information Memorandum 1998, p – 3

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Internship Report On BoK

CHAPTER # 2 ADMINISTRATIVE AND FUNCTIONAL SETUP OF BOK ORGANIZATIONAL STRUCTURE OF BANK OF KHYBER The Bank of Khyber is one of the modern organizations, it being managed by a competent staff. It is a centralized organization and the authority flows from up to bottom. All the available information about the organization’s management and structured are given in this chapter. Based on BoK Act, the general superintendence and direction of the affairs and business of the bank has been entrusted to the Board of Directors (BOD). The Board of five directors comprising four directors nominated by the government of N.W.F.P.1 BOK’S BOARD OF DIRECTORS According to the Bok Act, the Board of directors comprises of nine as follows:Four directors nominated by the govt.

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Internship Report On BoK

One director nominated by the Foreign Equity Holder Three directors elected by the shareholders The managing Director shall be the ninth director2 The list of board of directors is attached as annexure – 1 MANAGEMENT The day to day operations of the bank are run by a capable team led by Mr. Bashir Ahmad who is a competent, well qualified and highly respected banker. He has served with the World Bank, and as Federal Secretary to the government of Pakistan. He has also served as the managing Director of PICIC, IDBP, NIT and chairman, ADBP during his career. He holds a degree in economics from the London school of Economics. Over the past few years, Mr. Bashir Ahmad has gathered a team of professionals and well qualified senior executives of the bank. EMPLOYEES The bank currently employs 351 regular officers in various cadres of the bank. They include 2 ph.D.,181 post graduates including 75 MBAs/M.com, 93 M.A/M.Sc, 13 LLB from foreign and local universities and 169 graduates. Regular Clerical/ Non-Clerical Cadre does not exist in the Bank.

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Internship Report On BoK

The bank provides them with on the job training, as well as exposure to advance courses and seminars conducted by the institute of Banker in Pakistan and other professional institutes.3

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Internship Report On BoK

HEAD OFFICE Bank of Khyber have its Head Office. It is situated in cantt. This office is equipped with latest scientific tool. It has internet software. It provide all the important information. Head office has two divisions; as given below: The banking division Administrative division These are further classified for the purpose of administrative convenience. There is also other 2 independent departments. long term projects Audit department Long term projects handles the invest proposals of huge industrial projects whereas audit department is meant to have an internal control: DIFFERENT DEPARTMENT IN HEAD OFFICE 1. Branch operation department 2. Micro business and Rural development 3. Investment

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Internship Report On BoK

4. Personnel and establishment 5. Accounts and treasury 6. Monitoring and recovery 7. Long term projects 8. Computer 9. Foreign exchange 10. Public relation 11. Credit 12. RRMC/RC 13. International banking DEPARTMENTS 1. BRANCH OPERATION The branch operation department have direct control on operation of branches. It handles all these issue that are directly related to the operation of branches e.g. • Handles and legal issues • Budget projection • Test key 2.MICRO-BUSINESS

AND

RURAL

DEVELOP

DEPARTMENT

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Internship Report On BoK

This department deal specially with the due of cotton industry and small businesses, the aim of establishment this department was to fulfill the finance need of small businesses in NWFP. This department also provide loans to women development and rural area. 3. INVESTMENT This is a relatively new establishment department. The purpose is to pinpoint the invest opportunity and to develop

investment

programs. This department also forecast threat associated with these opportunity and give expertise. 4. PERSONNEL AND ESTABLISHMENT DIVISION i) Personnel. ii) Establishment Human are the backbone of organization. Its success is largely dependent on its personnel. The personnel department handle all the issue related to its employee it handle from recruit to promotion from ACR preparation to punishment and incentives etc. In order to develop its talented employee personnel section in collaboration with M/S department which was establishment recently aims at providing, preserving and enhancing new as well as existing employee competence in their jobs through improving their

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Internship Report On BoK

knowledge, skill, abilities and other characteristics by providing them training opportunity.

ACCOUNT AND TREASURY This department keep entire record relating to accounts. This department as its name signifies is responsible for handling the account of cash of bank of Khyber. This department is further divided into two department ACCOUNT DEPARTMENT Account department is responsible for repairing quarterly income statement, cash flow statement and Balance statement. TREASURY DEPARTMENT Treasury department is responsible for managing funds and to avoiding chance of misuse of funds. MONITORING AND RECOVERY

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Internship Report On BoK

In strict sense this department is legal hand of bank of Khyber. This department negotiates all the debts and if its efforts go in vain then they file litigation. This department provides full assistance to branches in enforcement of actual recoveries of debt through legal process. They trace borrowers and their assets and servicing of summons. LONG TERM PROJECTS This department is concerned with primarily with long term projects. This duty is to identify those long term project that will add significantly to development and progress of NWFP in particular and Pakistan in general. COMPUTER DEPARTMENT No modern organization can be visional without computer. This department is responsible for computerization of various branches of Bank of Khyber. This department has developed network software “internet” for the Head office etc. FOREIGN EXCHANGE This department is responsible for • Maintaining FCA • Dealing in telegraph drafts in foreign currencies

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Internship Report On BoK

• Facilities of imports and exports to client PUBLIC RELATION This department suggests how to improves relation with the public, how to attract customers and how to enhance people to invest in bank. CREDIT DEPARTMENT Credit division is for large loan sanction. This department handles the request and proposal of borrowers. This department is responsible for handling the lending activities of the bank. It provides accounts the terms and conditions to clients. It is responsibility of this department to accept or reject a proposal. RRMC/RC • Recovery of stuck off loans. • Negotiate with customer. • Banking court. • Mortgages. INTERNATIONAL BANKING (2 Sections In Karachi)

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Internship Report On BoK

a) It deals in foreign exchange. b) It up-to-date information about foreign currency.4

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Internship Report On BoK

HUMAN RESOURCE DIVISION Human resource division (HRD) plays a vital role in carving the present and future image of an organization by managing employees in the most beneficial and effective manner, the functional arena of HRD consists of recruitment, training, performance appraisals, planning and career development and above all grooming of staff to adhere to office ethics and social norms. At BOK, they believe that manpower is the most important and precious asset. The HRD tries to create an environment of mutual trust and dignity and trying hard to pursuit the expression: “We rather than I” so as to ensures best positive results. It is playing a proactive

role

in

capacity

building,

experience

sharing,

strengthening analytical and policymaking, skill up-graduation to help the staff in their endeavors to make BoK competitive, dynamic and one of the best banks in the country.

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Internship Report On BoK

HRD provides on the job as well as off-site training to the staff in diverse areas of banking and management. The training relies on both external courses at institutes of repute in the country and internally arranged courses. The management is very cautious about the training needs of the staff and every year a handsome budget is allocated for this purpose, our policy is to provide every employee at least one opportunity to attend training program in each calendar year. In addition to above, BoK acknowledges professional acumen, experience and expertise of its staff through regular financial benefits in the shape of competitive salaries, cash awards, promotions, academic, sponsorships and other incentives so as to boost their morale for greater input towards betterment of the bank.5 HRD department includes: 1. Personnel and Establishment department 2. Public Relation department 3. Stationary department ESTABLISHMENT SECTION Establishment is another major section in P& E department; this section is responsible for the following activities; • Establishment of new Branches. • Maintenance of existing Branches.

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Internship Report On BoK

PROCEDURE OF ESTABLISHING NEW BRANCH 1.The management committee decides whether a new branch should be established or not keeping in view the available development funds. 2.Establishment section assigned the responsibility to pre pare the survey report for the establishment of new branch such as bank name, number of branches capital structure, total deposits, liquidity position, etc. the part two contain details about new branch, information regarding the following items. • Name of the proposed branch. • Location of the proposed branch or other arrangements. • Means of communications available at the proposed location. • Confirmation of the branch location that whether it falls within the municipal town area. • Names, location and distance of nearest other bank’s branches. • Population of the area. • The volume and value of agricultural mineral, industrial production, import and export of area of branch operations. • Detail of exiting schemes for agriculture mineral or industrial development and their probable effect on the volume and volume and value of present production, import and exports.

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Internship Report On BoK

• Estimate income which the branch exports to earn within three years of its operations, details of sources such as interest return on advances, communion, funds, placed with head office. • Estimating the recurring expenditure for the proposed branch profit/loss anticipated. • The survey officer submits with the survey reports with SBP. SBP makes the final decision of granting license for. • Once license is granted by SBP, establishment of new branch, which involves some of the following: • Legal contract with the owner of proposed branch building, if any prior arrangement have been for the location of new branch. • Purchasing, leasing of necessary equipments (such as computers, fax machines, safes, lockers) through bidding for new branch. • Insurance of branch equipment with the approved insurance Companies. MAINTENANCE OF EXISTING BRANCHES The Maintenance involves all sort of expenditures which are incurred either for the repair of capital assets or for conditions to available capital assets, within the exiting branches and bank’s residences the establishment section premium on issues capital to

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Internship Report On BoK

the concerned branch, establishment section also handles the vehicles payment of token face and replacement of any part of the vehicles, office equipment.6

FUNCTIONS OF ESTABLISHMENT DEPARTMENT 1. Acquisition, Disposal/ replacement of fixed Assets, including vehicles. 2. Maintenance, up-keep of equipment/ renovation of fixed Assets. 3. Routine visits to Branches, HO Department regarding supervision of maintenance and branch requirements. 4. Negotiation, liaison with suppliers, contractors, Architects and Landlords (lessor). 5. Arrangement of premises for branches, HO and execution of lease agreements. 6. Inviting of tenders/ quotations for such job/works/goods. 7. Preparation of approval/ sanction notes. 8. Obtaining approval from P& W committees for

such

works/goods.

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Internship Report On BoK

9. Processing/ payments of bills, pertaining to such works/ jobs/ procurements. 10. Preparation of capital budget of the bank. 12. Supervision of Administrative matters and general condition/ cleanliness of branches. 13. Liaison with branches regarding up-keep, maintenance, acquisition of such assets & general condition of branches. 14. Security arrangement i.e. provision of security Guards, Burglar Alarm System etc. to Head office and branches. FUNCTIONS OF PERSONNEL DEPARTEMENT 1. They are engage in Personnel policy and Recruitment Planning. 2. They are concern with promotion and transfers of the employees. 3. Give loans, Medical leaves and Disciplinary actions to the employees. 4. They give training to the employees. 5. They are engage in Human resource Development, Job Rotation,

Training,

Career

Development,

Employee

Relation, Health Fitness Program 6. They arrange board meeting in the organization. 7. They also deals internees. 8. They forecast future needs and human resource planning.

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Internship Report On BoK

9. They give salaries to the employees. 10.They are engage in screening and selection of employees. 11.It also give Post Retirement Benefits to the employees of the bank.

FUNCTIONS OF PUBLIC DEPARTMENT 1. Design & launch publicity of the bank of Khyber. 2. Arrange high level meetings with Governor/ chief minister/ provincial

&

federal

Ministers

arrange

high-level

Government officials. 3. Accompany the managing director at the meetings as principal staff officer. 4. Generate English bulletin on political/ cultural/ social economic news. 5. Conduct protocol duties with the visiting dignitaries, delegations & other luminaries. 6. Prepare press release in English & Urdu. 7. Keep close liaison with all Pakistani political/social leaders.

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Internship Report On BoK

8. Keep liaison with all the international organizations like UNHCR/ICRC/UNOCHA/Afghan commissioner ate, NWFP, Peshawar too coordinate in relation to issue of BOK. 9. Keep close contract with local industrialists, businessmen & Sarhad chamber of commerce & industry for promoting mutual trade relations.

FUNCTIONS OF STATIONERY DEPARTMENT 1. Administration and overall supervision of the department as Incharge of the Department . 2. Putting notes for seeking prior administrative approvals for procurement of printed and security stationery from purchase committee and after approval ; order are placed to printer. After receipt of respective consignments ;payment notes are submitted to purchase committee. 3. Correspondence with HO/Branches/Departments. 4. Being the Secretary of Stationary Committee, meeting of the committee are arranged for making decision with regard to introduction of new items; amendments of existing forms and

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Internship Report On BoK

pads with consultation and consent of members of committee. 5. Rectification of audit objections and removal of any complaint of the Branch/Department in respect of supply of items at the stationery required. 6. Any other matter which management wants to discuss in respect of supply of printed and security stationery items.7

REFERENCES

1. Noor Rehman. (1997-1999). An Internship Report on the The Bank of Khyber. IMS, Peshawar, p –12, unpublished material. 2. Sir Ahmar, personnel department, The bank of Khyber 3. The Bank of Khyber, Information Memorandum 1998, p – 5 4. Waqar- ul –Haq, Session (2000-2003), IMS Peshawar, pp 20-26, unpublished material.

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Internship Report On BoK

5. The Bank of Khyber, Annual Report, 2003, p- 21 6. Nauman Amin, Session (1999-2002), IMS Peshawar, pp 49-51, unpublished material. 7. HRD department, The bank of Khyber, Head office Peshawar cantt.

CHAPTER # 3 PERSONNEL POLICES RECRUITMENT POLICY OBJECTIVES Financial institutions require sound management and a high degree of technical expertise as well as competence and integrity. Recognizing that the quality of Human Resources will determine the future of the bank certain objective have been laid down as the cornerstone of our recruitment policy which are:

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Internship Report On BoK

1. That the highest standards of efficiency and integrity be maintained by merit being the sole criteria for selection. 2. That induction of officers be made through a competitive process based on well defined criteria in line with prevailing practice in the banking industry. 3. That regular and permanent induction be made in officer cadre only without clerical and other non-clerical staff. 4. That the bank may pay competitive remuneration in line with other banks, to attract staff of higher professional caliber, for induction at an appropriate level. POLICY AND PROCEDURE 1. Appointment shall be made both through direct recruitment and by promotion from lower posts on merit. 2. Appointment to the posts of officers and supporting staff shall be made by the Competent Authority on the recommendation of selection Committee to be constituted from time to time. APPOINTMENT CONDITIONS FOR EXPERIENCED BANKERS Graduate with at least three years banking experience. Preference will be given to the candidates who have passed banking diploma

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Internship Report On BoK

examinations. The above conditions may however be relaxed by competent Authority on merit of each case. FOR FRESH CANDIDATES; OFFICER GRADE-II AND ABOVE Master’s Degree with a minimum of 60% marks from any recognized with preference to MBA, MPA, M.Com. and Economics.

JUNIOR OFFICER AND OFFICER GRADE-III Graduate/Post Graduate from any recognized university. Suitability of a candidate for the grate shall be determined by the Selection Committee. Every candidate must be declared physically fit by a registered Medical Practitioner appointed by the bank before entering the service of the bank. APPOINTMENT PROCEDURE FOR OFFICER GRADE-II AND ABOVE

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Internship Report On BoK

1. All the available vacancies for fresh recruitment shall be advertised in the National/CL newspapers as and when deemed appropriate by the Bank. 2. The upper age limit for fresh candidates shall be 28 years. Appropriate age relaxation may be granted to candidates possessing qualification of Chartered accountant, ICMA or Ph.D. 3. A merit list on the basis of marks obtained by each candidates in test and interview shall be prepared for recruitment. 4. The Selection Committee may relax the requirement of written test in case of candidates possessing qualifications of Chartered Accountant, ICMA and ph.D.

APPOINTMENT PROCEDURE OF OFFICER GRADE-III/ JUNIOR OFFICERS All such appointment shall be made by the Selection Committee and suitability of a candidate for the appropriate grade shall be determined by the Selection Committee. APPOINTMENT IN NON-OFFICER CADRE/ DRIVER AND SECURITY STAFF

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Internship Report On BoK

Appointment to all such posts shall be made by the selection committee on the suitability and fitness of the candidate, irrespective of educational qualifications.1 The nomenclature of the various posts in the Bank shall be as under: • Executive Vice President • Senior Vice President • Vice president • Assistant Vice President • Officer Grade-I • Officer Grade-II • Officer Grade-III • Junior Officer • Driver TERMS AND CONDITIONS OF SERVICE PROBATION AND CONFIRMATION The probationary period in respect of officers and subordinate staff will be one year and shall be extendable at the discretion of the Competent Authority. However, in case of officers recruited on the basis of previous experience, the Competent Authority may either condone or relax the probation period up to six months.

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Internship Report On BoK

In the event of an employee failing to show satisfactory progress during the probation period, the period of probation may be extended further on his services dispensed with or without any notice. The probationary period shall automatically stand extended if the bank does not issue confirmation orders. The Managing Director or any person duly authorized by him may confirm the services of an employee. TERMINATION OF SERVICES i.

The bank may dispense with the service of a permanent employee by giving him/her one month’s notice or pay in lieu of the notice period. The power to terminate the service of an employee shall be exercised by the Managing Director or any officer authorized by him. Such termination of service of an employee is at the absolute discretion of the bank and it shall not be entitled to any form of compensation from the bank.

ii.

The bank reserves the right of dismissing an employee without any notice/ assigning reasons if he is found guilty of misconduct, fraud, breach of trust, or any neglect from duty.

RESIGNATION A permanent employee shall not resign from the service of bank without giving three month’s prior notice to the bank in written (one month will be considered of 30 days). Failure to give such notice

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Internship Report On BoK

shall make the employee liable to pay the bank a sum equal to his three-month’s salary. The temporary employees shall be required to give one month’s notice to resign his appointment or to pay the bank a sum equal to one month’s salary. TRANSFERS All employees of the Bank are liable to be transferred to the Head Office or Branch/office of the Bank anywhere in Pakistan. In the event of non-compliance by the employee, he shall be liable to be terminated from the services of the Bank. PROMOTION i.

Promotions to various posts of officers shall be made on merit and no employee shall have a claim to be promoted by virtue of seniority alone. In case, any employee in the higher post shows signs of deterioration, he shall be liable to immediate reversion to the lower post previously held by him.

ii.

For promotion to the posts for which special qualifying examinations or other conditions have been specifically laid on, only the employee who passes such examination and fulfills such other conditions, shall be eligible and no relaxation shall be made in this belief except, in special cases, by the Competent Authority.

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Internship Report On BoK

SENIORITY (a) For proper administration of cadres/grades, the bank shall cause a seniority list of the employees to be prepared in January each year and circulated amongst the employees but nothing contained in the seniority list shall be construed to confer any vested right to a particular seniority in such cadre or grade, as the case may be. (b) In the case of direct recruits: • Persons who are selected for appointment earlier by a Selection Board or Committee shall rank senior to those selected later.

(c) In the case of departmental promotes: i) Employees who are approved on the recommendations of the Promotion Committee for promotion to the higher grade on an earlier date shall rank senior to those who are approved on a later date, provided that an employee eligible for promotion who is inadvertently omitted from consideration in the original reference and is thus overlooked, when he is subsequently considered and

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Internship Report On BoK

approved for promotion shall take his seniority with the original batch.2

HUMAN RESOURCE DEVELOPMENT AND TRAINING BACK GROUND The bank of Khyber recognizes the need to enhance the productivity, performance and value of its employees through continued training/education. The bank initiated the preparation of human resource development policy and plan by keeping in mind these objectives.

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Internship Report On BoK

POLICY FEATURES The salient policy objectives of human resource development program are: 1. To develop skills to insure that every officer at a minimum is capable and qualified for his/her current position. 2. To offer an orientation course for new employees (General Banking): a. To promote a common culture of the bank of Khyber. b. To familiarize the new entrants to the services rules of the BOK.

TRAINING & DEVELOPMENT The banking of Khyber’s training and development programs aims to improve current and future employee performance by increasing, through learning, an employee’s ability to perform, usually by increasing his or her skills and knowledge. OBJECTIVES

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Internship Report On BoK

Increase Bank’s productivity by: • Improving performance of employees • Increasing adaptability and flexibility of each employee • Increasing the level of commitment • Reducing the employee turnover and absenteeism PURPOSE • The major purpose of BoK training plant is to remove performance deficiencies, whether current or anticipated, that are the result of employee’s inability to perform at the desired level, and be more productive. • BoK training plan is also very important because ever changing financial/banking sector demand flexibility and adaptability in the employees.1 Training & development program of the bank of Khyber is designed in three phases: 1. Assessment phase 2. Implementation phase 3. Evaluation phase ASSESSMENT OF TRAINING NEEDS

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Internship Report On BoK

The Assessment of training needs was simplified and a training needs survey was used to gather data on the employee’s perceived need for training as well as the immediate supervisor’s assessment. The employees name was recorded for each course where his choice matched that of that supervisor. IMPLEMENTATION The implementation phase of training plan involves the actual delivery of training. This requires resolving issues such as determining course content, scheduling courses, contracting /assigning instructors, choosing training methods, media and venue. The following ideas may be considered:

1. CURRICULUM COMMITTEE In order to ensure that the course content is relevant and current and the course schedule reflects the needs of the organization, it is , suggested that a Curriculum Committee be set up which will be responsible for the approval of course schedule and course content as well as serve as the advisory body for training. 2. COURSE SCHEDULE FOR IN-HOUSE TRAINING

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Internship Report On BoK

The courses scheduled have been chosen based on; • Continuation of the core competencies banking courses in General Banking, Advances and Foreign Exchange. • Suggestion of External Auditor and others. 3. REGIONAL FOCUS BoK are looking to organize training at regional levels, the concept being that BoK take the training to the employees rather than bringing the employees to the training, where ever possible, The regional centers are likely to be Karachi, Lahore, Islamabad, Abbottabad, D.I.Khan and Mardan. In the connection, BoK will be required to develop trainers locally.

4. SPECIALIZED TRAINING As laid out in the career path proposals, it is intended that employees will enter specialized streams or career paths. They will then be imparted specialized training in their relevant fields to become specialist in that field. Thus, BoK will have to tailor the training programme to provide the required specialist training. 5. MODULARIZATION

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Internship Report On BoK

To provide more flexibility and reduce time away from work, the courses have been modularized. Thus for example the General banking course may now be delivered in ten modules of modules BB1through LB4instead of one, two-week course. 6. TRAINING MATERIALS The training Materials used must be relevant which the curriculum committee will insure. Further they must address the skill base at the level of the participants and must be compiled that any trainer at any location can use them.

7. BANKING DIPLOMA EXAMS The personal Department has been planning to offer some assistance with DAIBP exams since last year, at the repeated requests of employees. It is going to be difficult to arrange lectures for all the bank’s staff over a two to three months period. Therefore, it is planned, that an information packet on the subject will be prepared and distributed to all interested.

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Internship Report On BoK

8. TEACHING METHODS It is felt that BoK teaching methods needs to be changed from classroom lecture style to a more participatory workshop approach. Further, BoK plan to work in a way so that least amount of time is spent away form the job and learning is reinforced with actual on the job training. EVALUATION Any training programme undertaken is than evaluated to

analyze

if objectives are being achieved and if the benefits justify the cost. Evaluation techniques used could be feed back surveys of trainees, tests, and results as mirrored through customer comments, profitability, decrease in Audit Objections, External Audits, Results on industry standard tests such as DAIBP and comments of the employee’s immediate supervisor. BoK believe that an evaluation survey method may be the best option for evaluation of the programme and plan to use an evaluation from which will be designed in due course. TRAINING AND DEVELOPMENT The Bank of Khyber started its operations in 1991 with a staff of 20 officers. Initially the bank hired experienced staff from other banks

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Internship Report On BoK

who were assigned to the newly opened branches of the Bank. As the Bank grew and consolidated its operations the need for training both for emerging now issues, as well as strengthening of basic competencies, began to be addressed. In the year 2001, the Bank sent 61 officers for training at external institutes and arranged training at the Head Office for 67 officers. It may also be noted that training courses of the IBP are now also being arranged at regional centers. This year the bank has arranged courses arranged courses for groups of 20 to 25 participants of the following important subjects: • Credit Management, Evaluation, Documentation & Recovery. • Customer service in Banks. • Applied Accounting.3

ALLOWANCES AND FRINGE BENEFITS The Allowance and other Benefits admissible to the permanent employees of the Bank of Khyber shall be prescribed by the board and changed/modified from time to tome. The existing Allowances and benefits of the bank are as under: UTILITIES

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Internship Report On BoK

All officers are entitled to utility charges at the rate of 10 % of the basic pay. The charges are admissible during tours and training within the country/abroad and leave of full pay except extra ordinary leave. REFRESHMENT CHARGES The Officers who are required to sit late in connection with bank’s work or required to attend the office on closed holidays may be allowed refreshment charges up to Rs. 200/- per day by the Personnel and Establishment Deptt., on the recommendation of their controlling officers. INCREMENT 1. Annual increments shall be granted to the employees on 1st January each year provided the work and conduct of the employee concerned is satisfactory and clearance has been granted by P & E Department. 2. The following provisions prescribe the condition in which service counts for increments in a time scale:i)

All duty in a post on a time-scale and periods leave other than extra-ordinary leave count for increment in that scale.

ii)

An employee who has rendered at least six months service in a scale shall be entitled to annual increment on 1st

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Internship Report On BoK

January. However, this condition may be relaxed in case of officers recruited on the basis of previous experience. GRANT OF HONORARIUM The Managing Director may grant honorarium to an employee from the funds of the Bank as remuneration for work performed which is occasional in character and is either so laborious or of such special merit so as to justify a special reward. DISBURSEMENT OF SALARIES Pay and allowances of the employees will be disbursed on the 25th day of the month. On special occasions such as Eid-ul-Fitr and Eidul-Azha(for Muslim employee) and Christmas (for Christian employees) the Managing Director may authorize advance payment of salaries to the Bank employees. The Managing Director may allow any extra facility over and above the entitlement of any officer of the bank in the interest of Bank’s business or under unavoidable circumstances etc. CONVEYANCE

ALLOWANCE/

MAINTENANCE

ALLOWANCE

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All officers not provided with an official transport will be entitled to conveyance allowance or Motorcycle/ Motorcar Maintenance allowance at the rates and subject to the conditions specified below: i) Conveyance Allowance/

Rs. 500.00

Motorcycle Maintenance

per month (for all Allowance employees)

ii) Motorcar Maintenance

Rs. 1000.00

Allowance

per month (for Officers only)

TRAVELING ALLOWANCE/ DAILY ALLOWANCE RULES ● Daily allowance will be admissible for each day of absence from head quarter, to cover the ordinary charges incurred by an employees as consequences of such absence & can be drawn on tour & also on relieving ● The employees up of senior Vice President may stay in government Guest houses, public Sector Corporation rest Houses & Hotels, they can claim room rent charges on production of receipts subjects to a maximum of three L.A, at all station accept provincial & federal capitals where the following Vales will be allowed for room rent. OG II & below officer Grade III up to Rs.1000/-per day. OG I & AVP up to Rs.2000/- per day. VP & SVP up to Rs.2500/-per day.

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Internship Report On BoK

● Executive Vice Presidents may stay in Hotel & claim actual charges including room rent, food charges, telephone & other allied expenses if incurred in connection with Bank’s business/ work. ● The employees may claim T.A advance equal to 80% of their entitlement & adjust the same on the return from tour. The T.A, bill shall be submitted written two months after the tour to regularize claim. CONVEXANCE CHARGES Actual avoidance charges are admissible to officer for official journey at an outstation while on tour & also for local official journey on furnishing a certificate with the T.A, bill that the amount was actually spent & no official transport was used such journey. Other employees will be emitted to actual fare of public transport.

ENITLEMENT OF OFFICERS FOR OFFICAIL JOURNEY i) All the officers are entitled to travel buy air in economy class both on domestic as well as inter national flights subjects to approval of controlling officer & will claim actual fare of the economy class, the competent authority may allow fare of other class.

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Internship Report On BoK

ii) Other employees are entitled to travel by train in economy class or by bus or flying coach. While traveling by train they are entitled to actual fare of second/economy class & while traveling by road they are entitled to actual fare of bus/flying coach. TRANSFER GRANT Transfer Grant will be admissible to all the employees at a uniform rate as under once in a calendar year, unless the transfer is required in the interest of the bank & is not at the personal request of the employee whereby it may be allowed more than one time a year. Employee possessing family = one month salary Employee not possessing family = half month salary FOREIGN T.A RULES The bank shall generally follow the T.A Rules of the Federal Govt. expect that incidental charges covering transportation, telephone, entertainment etc shall be admissible at the rate of 20% of the D.A entitlement to the officers proceeding on officer tour/training abroad. HOUSE RENT ALLOWANCE

All employee not provided with residential accommodation by the Bank are entitled to house rent allowance at all stations at 70% of

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Internship Report On BoK

the basic pay. This allowance is admissible during the period of joining time, tour, training and leave on full pay except extraordinary leave.4

LEAVE RULES CASUAL LEAVE An employee will be entitles to 20 days. Casual leave pay in each calendar year. Such leave will not be carried forward to the following year & will lapse if not availed during the year. The

51

Internship Report On BoK

casual leave will not normally be granted for more then 5 days at a time. • Casual leave is intended to meet unforeseen Circumstances. • Casual leave will not be combined with any leave. EARNED LEAVE (a) The entitlement/admissibility of the earned leave to an employee enrolled on the strength of the BoK shall be whorled out from the date of joining as under: 1. Earned of 48 days shall be admissible in every calendar year. 2. Leave for periods of less than one year will be calculated on prorate basis ignoring decimal fraction. 3. Earned leave of 48 days will be credited only after completing one year of services.

(b) The earned leave may be accumulated & availed by the employees up to a maximum of one year in the entire service. PAY DURING LEAVE ON FULL PAY

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Internship Report On BoK

Pay admissible during leave on full pay shall be the same as drawn in the preceding month subject to pass. LEAVE WITHOUT PAY RECREATION LEAVE RL may be granted for 7 days outside the leaves account once in a calendar year. Recreation allowance equal to one basic pay will be admissible to the employees. MATERNITY LEAVES ML shall be admissible to female officers three (3) times in the entire service. The leave may be granted to the extent of 90 days in all from the date of the commencement or forty five days from the date her confinement, which ever be earlier the leaves so granted will be leave on full pay, but will be first adjusted against the earned leave balance of the employee & the remaining period will be created as leave on full pay outside the leave account. MEDICAL LEAVE & STUDY LEAVE Medical leave and study leave can only be availed with the prior written consent of the competent authority such leave shall not be claimed as a matter of right & will be decided on the merit of each

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Internship Report On BoK

case. In case of medical leave an opinion from the bank’s approved medical advisor may be sought when seen fit by the competent authority. Medical leave or study leave if granted will be deducted from the earned leave account of the employee on full pay & the remaining duration treated as leave without pay. ENCASHMENT OF EARNED LEAVE Encashment of earned leave up to six months on full pay shall be admissible to an employee during the entire services provided he has completed 4 years of service on the date of application.5

LOANS AND PENALTIES LOANS FOR STAFF The BOK offers the following types of loans to their staff.

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Internship Report On BoK

1.House building finance 2.Car/motor cycle 3.Personel loans 4.Car lease finance PURPOSE OF STAFF LOANS The basic purpose of staff loans is to relieve their employees or staff members from any type of problem they are facing regarding their accommodation, connivance or any problem that is going to hurt their performance while they are on the job. TOTAL SHARE OF THE STAFF LOAN Bok offers 5% of the total deposits of the year for the staff loans. For example, if the total deposits for the year are 100,000/- then the staff loan for that year will be 5% of 100,000/- i.e. 5000/-

PROCEDURE FOR THE STAFF LOANS Every November 15 to December 15 a Circular is circulated to all branches of the BoK in order to make aware all the wishing employees if they want to avail this facility offered by the Bank to

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Internship Report On BoK

them during this periods. These employees or staff members then forward their applications to the concerned person in the Personnel Department. These applications are then checked according to the criteria given for each type of loan, those found eligible, their applications are accepted according to the set procedure and are forwarded for the due procession. CRITERIA AND PROCEDURE FOR HOUSE BUILDING The criteria and procedure followed for the House Building Finance is as follows; • The employee applying for this loan should have a length of service of three years. • The selected employee for the loan will be paid a loan equal to his eighty (80) basics pays. • This loan will be paid in two equal installments. The first installment will be paid when the application is accepted and the second installment is given after the property on which the house is going to be build is Mortgaged with the Bank. • The length of recovery for this type for loan is twenty years (20) OR 240 installments. CRITERIA AND PROCEDURE FOR CAR/MOTOR CYCLE LOAN

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Internship Report On BoK

• The criteria and procedure for this type of loan is followed as; • The person applying for this loan should have a service period of at least one year. • The amount of loan payable for the car is one hundred and fifty thousand rupees only. (150,000/-) with a mark up rate of 8%. • The amount of loan payable for the motor cycle is forty thousand rupees only (40,000/-). There is no mark up on these loans; it is free of mark up. • The recovery period for this type of loan is 10 years. HOUSE BUILDING ENHANCEMENT This type of loan comes into the frame when an employee or staff member who has already applied for the house building loan and is accepted for that purpose as well and during this course he either gets Promotion or his salary increases by any special increment so he becomes eligible for this loan, two things should be checked while giving this loan; Evaluation of the property, what is the value of the property for which he is asking for this type of loan? For example, if he the loan available for him is 150,000, then the value of the property should be round about 170,000/-

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Internship Report On BoK

Legal opinion must be taken from the lawyers in order to avoid the complications of Audit. PERSONAL LOANS Their criteria and procedure for the Personal loan is that the applicants should have. • Completed at least one year of his service. • The applicant is entitled for three basic pays for the loan. • The rate of markup for this loan is 11%. • It is payable within three (3) years. • The employee can avail this loan for three to four times during his/her service. CAR LEASE This loan was first started on commercial basis for general public, but due to the consistent demand of the staff members of the BoK, the higher authorities approved it and the bank started offering this to its own employees as well. Lease is an Islamic mode of financing and is in accordance with the statement of the BoK as well, which states that the bank will develop into a full fledge Islamic bank with the passage of time. CRITERIA AND PROCEDURE FOR CAR LEASE

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Internship Report On BoK

The criteria and procedure for the car lease is as follow; • The employee applying for this should have five (5) years as a length of service. • He/she will have to pay 10% as a sown payment. • The markup rate will be 6%. • He/she will have to pay 3%as an Insurance per annum.. • The vehicle should be newly purchased. • The vehicle should be registered at the name of the bank. • If the employee has already availed the car loan then it should be adjusted before disbursement. • Junior officer, O.G-I, O.GII can avail up to Rs.300, 000/• O.G-I and AVP and above can avail up to Ts.700, 000/- 6 DISCIPLINARY AND GENERAL CONDUCT RULES GROUNDS FOR PENALTY Where an employee of the Bank, in the opinion of the authority i) Is inefficient or has ceased to be efficient ;OR ii) Is guilty of misconduct ;OR iii)Is corrupt, or may reasonably be considered corrupt PENALTIES

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Internship Report On BoK

The following are the minor and major penalties, namely :MINOR PENALTIES: i) Censure ii) Withholding, for a specified period, promotion or increment, otherwise

than

for

unfitness

for

promotion

or

financial

advancement in accordance with the rules or orders pertaining to the service or post; iii) Recovery from pay of the whole or any part of any pecuniary loss caused to the Bank by negligence or breach of orders; MAJOR PENALTIES: 1. Reduction to a lower post or time-scale, or to a lower stage in a time-scale: 2. Compulsory retirement; 3. Removal from service; and 4. Dismissal from service.7

REFERENCES

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Internship Report On BoK

1. The Bank of Khyber Employees Service Rules (1998), pp 6-8 2. The Bank of Khyber Employees Service Rules (1998), pp 9-12 3. Sir Zahid, Personnel department, The bank of Khyber Peshawar 4. The Bank of Khyber Employees Service Rules (1998), pp 13-16 5. The Bank of Khyber Employees Service Rules (1998), pp 20-22 6. Miss. Tayyaba Akhtar, Personnel department, The bank of Khyber. 7. The Bank of Khyber Employees Service Rules (1998), pp 39-40

CHAPTER # 4

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Internship Report On BoK

ANALYSIS ADMINISTRATIVE ANALYSIS 1. SPACES SHORTAGE It is observed that branches suffer from space shortage. The seating arrangement is not sufficient as compared to the number of employees and customer. 2. SLOW CAREER GROWTH Promotion is one of the motivational tools, promotion policy of Bank of Khyber is very slow. The opportunities for upward advancement are very few. 3. CENTRALIZATION BoK has a centralized structure. There is no delegation of authority to the lower management/staff. In order to improve the performance of the staff and to build their confidence, some authority must be delegated to the lower management. 4. LACK OF SPECIALIZD TRAINING

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Internship Report On BoK

In BoK training is provided on basis of generalization rather than specialization. After completion of training he/she is inducted into a specific field. Due to lack of knowledge he or she faces difficulty to perform the assigned job. 5. NEGLIGENCE OF RULES AND REGULATIONS It has been noted that the Bank’s officers usually neglect the rules and

regulations either intentionally or unintentionally, because

these have not properly communicated to them. Their prompt communication must be ensured and the employees must be informed about the penalties in cases of negligence. 6. POOR JOB ROTATION Branch officers are not properly rotated. It is noted that an experience banker from Deposit section doesn’t know about the work of remittance department. So they must be rotated in all the departments of the banking order to get familiar with the working of different department in order to have a know how of the whole system.

7. IMPROPER DISTRIBUTION OF DUTIES

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Internship Report On BoK

In BoK there is improper distribution of duties and responsibilities. It is being observed that sometimes an officers of the same grades may less or more responsibility than another officer of this grade. 8. PRODUCT RATES When BoK’s product rates are compared with the competitors, one can notice that they either have the same or lower rates. So in order to attract the customers, BoK must offer rates above the market to have a better market share. 9. WORKING SETUP It is observed that there are some deficiencies in the branch setup, which creates extra disturbance, and excessive movement, which in turn effect, the efficiency of employees and thus that of the whole organization also. 10. SEPARATION OF ACTIVITIES There is no separation of activities e.g. clearing of cheques. This is partially done in deposit department and partially in accounts. This creates confusion and conflicts. In order to avoid mishaps, there should be complete separation of activities. PERSONNEL MANAGEMENT ANALYSIS

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Internship Report On BoK

1. NEED FOR BETTER TRAINING PROGRAM It has been noticed that the training program of BoK is not adequate. Special marketing training should give to employees who are concerned with marketing. They should learn new methods for motivating customers. The training program of the bank should include scientific techniques to improve the decision-making, and Inter personal as well as individual needs of the employees. 2. MARKUP CHARGES Like all the other charges a higher rate of markup on short- term loans in comparison to other commercial banks. This may causes reduction in its clients. 3. MARKETING VISITS A very useful mode of contact is through personal marketing visits. Such visits are an important by product such as gaining information about the customer’s financial and business position, about his marketing reputation and creating a feeling of importance in the minds of client.

4. LACK OF PUBLIC COMMUNICATION

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Internship Report On BoK

Communication plays a vital role in any business circle, however, it has been noticed that BoK employees are lacking the skills of effective communication. Proper attention must be given to enhance the communication skills of the employees from top to bottom. 5. MARKETING AT DESK Bank employee come in daily contact with many people who happen to deal with the bank as casual remitter or beneficiaries, drawer of bills, safe custody service holder, travelers and variety of other people with whom that bank has no account or regulars relationship. The bank officers are doing very little on their own to explore the possibilities of selling banking services to them as a marketing contributor.

POLITICAL ANALYSIS

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INTERNAL POLITICAL ENVIRONMENT 1. In personnel and establishment is no systematic reward that result is lower employee motivation. Due to which the experience project officers frequently leave personnel and establishment. This result in constant shortage of project officer. 2. There is a very weak coordination among employee of personnel and establishment. It serve as factor toward is efficiency of which on it. 3.There is no political pressure for strong coordination between different institutions so as to lower the cost of employees. 4. There is lot of political interference in the recruitment system of the bank that result in inefficient management which in the long run result eventually in bad portfolio. 5. Having 51% share of Bank of Khyber provincial government always interfere in regular operation of bank which has strong impact on efficiency of bank.

SWOT ANALYSIS

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Internship Report On BoK

STRENGTH 1. First bank to start Islamic banking in Pakistan. 2. Provincial government backing and confidence of people due to government bank. 3. It has modern technology and resources. 4. Staff has combination of young and rich in experience and working skill. 5. Officer attractive schemes and ,more saving for customer from time to time. 6. The Bank of Khyber has market confidence in providing products and services to the customers over the year. 7. Bank of Khyber has the ability to cope with pressure of competition. 8. Bank has the good with of the people and it is also an assets to it. 9. Bank’s management has the motivation to make it best bank of the country. WEAKNESS 1. Employees are lacking motivation. Bank is not limits and thus reducing the efficiency. 2. Communication gap between different levels of management.

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3. The lower level management lacks clear direction and is not having the managerial depth. 4. Lack of experienced commercial bankers in the top management positions 5. Lack of modern banking approaches like ATM and commerce on line banking. 6. Marketing skills of the bank are good but they have little presence at different media. 7. Low salary structure as compare to competitors. 8. Not in the position to compete with other banks. 9. Lack of highly trained resource staff. Increasing trend of bad loans. 10. Lack of modern technology. OPPORTUNITIES 1. Opportunity to open branches in northern areas specially Timergara etc because there is 100% current deposit. 2. Extending banking hours and providing more branches facilities to customers. 3. All branches are computerized therefore no difficulty in thinking it into on line banking. 4. Bank should take interest in the new market segments like IT business, software business etc. 5. A new serves to its product line.

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Internship Report On BoK

6. Increasing credit facilities to lower income groups, thus reducing the risk of loss and also improving the image of the bank. 7. To open a branch in Afghanistan. THREATS 1. Political, economical situation of the country. Reduction in the business activities in the country. 2. Deteriorating confidence of people in bank uncertainties of the investors. 3. Modern technology used by other commercial banks. 4. Starting Islamic banking is threats for BoK because if it is flop it will be a big loss for BoK. 5. Increasing number of private/foreign banks in the country. 6. Reducing the rates of savings in different segments of people. 7. Global technological advancement. 8. Bank Alfalah and other commercial banks is the biggest threat for BoK. 9. Qualified staff working in other banks.

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For “SWOT” analysis we can conclude that the management of the bank should adopt systematic planning for the bank growth, talking with them all management levels of the banks, discover new segments of the customers, offering schemes for its customers. Similarly Bank of Khyber has to focus on potential customers and give proper attention to every customer and their need then it will become one of the leading and comprehensive bank. Emphasis on present customers by giving them personal Services and targeting the private potential customers instead of Government deposits at high interest rates. Creeping trend of non-performing loans.

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CHAPTER # 5 RECOMMENDATION The following findings and recommendations are based on personal observations and analysis. The given recommendations will help to cope the problems being faced by the bank and will enhance the efficiency and performance of the bank of Khyber. 1. SPACE SHORTAGE: During my internship in the Head office Peshawar I observed that there is shortage of space at branch. There is no proper and easy seating arrangement for the customers. To over come this problem, the bank either may hire the adjacent building or simply can shift to some other place. 2. BETTER TRAINING PROGRAMS It has been noticed that the training program of BoK is not adequate. Special marketing training should be given to employees for motivating customers. The training program of bank should include scientific techniques to improve decision making and interpersonal as well as individual needs of an employee.

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3. DECENTRALIZATION Some authority and responsibility should be delegated to the lower grade staff as well so that they should also consider themselves important and responsible. This will also be motivating factor for them and results in greater efficiency. 4. PROPER CHECKING There is no proper checking system on the entrance of Head office. For safety purposes, there should more security measures, besides special checking instruments at the main entrance. 5. BETTER COMMUNICAION The management of BoK should concentrate on improving upward communication so as to have better feedback system involvement in the bank operation. 6. INCREASE IN NUMBER OF TERMINALS The BoK Head office is computerized but still, there is shortage of terminals and personal computers. This thing also affects the speed and accuracy. For the increase in number of terminals and purchase of personal computers. The provisions of above facilities will

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Internship Report On BoK

improve the accuracy and speed and will enhance the efficient working. 7. INTRODUCING CAREER PLANING As a matter of personnel policy, personnel department should prepare career plan showing their future growth potential. 8. MERITORIOUS RECRUITMENT Appointment in the bank should be strictly on merit basis with no other favor given to any candidates. In the BoK connection play an important role in recruitment decisions. Recruitment should be based on relevant qualification and experience particularly in the field of business administration, financial management, and computerization and marketing expert through competition, which will ultimately attract better competent employees in the bank. 9. MARKETING VISITS A very useful mode of conduct is personal market visit. Such visits should be properly planned with regularly.

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Internship Report On BoK

10. TRAINING ACADEMY The BoK does not have its own training academy. The training to newly recruited employees is given in the training academies of other banks. Similar is the case for existing employees. To fulfill the requirements of training of the new and existing employees to receive training of the peculiar and specify working functioning of the BoK. 11. SHORTAGE OF EMPLOYEES Shortage of employees increases the workload on existing employees and ultimately reduces the output and motivation level of employees. to overcome this problem job description should be revised and grouped together in order to create new jobs. Recruitment should be done in order to fill up these new vacancies. In this way the workload on employees will be reduced, operations will be stream lined and employees will feel comfortable in performing their duties more effectively. 12. MORE FRIENDLY ENVIRONMENT More friendly environment should be created because it will help to gain the interest of employees in work. Noise in the office should be reduced because it has unfavorable impact on the working environment. Separate place or section should be created for each

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Internship Report On BoK

separate task and more space should be provided. It would also be of greater help in establishment of friendly environment. 13. USE OF MOTIVATORS Individuals must have a competent enough job to motivate him, to be a challenge for him. Jobs must be with responsibility of achievement,

recognition,

advancement

and

growth.

Such

motivators should be used for efficient working. 14. ENHANCED CUSTOMER SERVICES Constant improvement in customer services are needed in today’s competitive

environment.

Personalized

banking

should

be

introduced to attract more customers. Equal respect should be given to all customers. 15. INTORDUCTION OF MANAGEMENT BY OBJECTIVES The concept of MBO should be introduced in the bank where the subordinates should be expected to formulate objectives by themselves. This will ensure the setting up of objectives according to the capabilities of the individuals. In addition, it will also help in achieving goals because they are involved in the process of goal setting.

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16. PROPER JOB ANALYSIS A detail and systematic study of the job should be done to know the nature and characteristics of the people to be employed. This will help in identifying the training needs, evaluating the job and in appraising the performance of the employees. 17. INTERNATIONAL BANKING BoK should expand its branches, not only in Pakistan but also outside the country now. 18. LATEST COMPUTER EQUIPMENTS Latest software should be introduced in the bank so that the data processing speed of the computer can be enhanced. 19. CUSTOMER CARE COUNTER Customers satisfaction is the key to success. They need proper attention. The Head office is understaffed and employees are over loaded, it creates more problems for them when customers disturb and interrupt them while working. Therefore, for the benefit of customers and smooth working of bank, there should be a customer care counter to guide and help the customers.

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20. BRANCH NETWORK The BoK has 29 branches all over the Pakistan and Azad Kashmir. 23 of the total branches are located in NWFP and there is only one branch for the whole of Punjab province located in Lahore. For Sindh province, there are two branches both located in Karachi and similarly one branch for whole Azad Kashmir and one for Islamabad. This branch network is too small to compete with other banks. The branch network should be improved and number of branches should increase to reach and provide services to maximum number of customers. 21.

SCHOLARSHIPS

PROGRAMS

FOR

DESERVING

EMPLOYEES Scholarships programs should be designed for deserving employees of BoK for higher education and training in foreign universities. Every year the bank should finance and send their employees for further training within the country and abroad to enhance their knowledge and skill. This will enable the employees to attain the strategic objectives of the bank and increase the over all business and profitability portfolio of the BoK.

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CHAPTER # 6

CONCLUSION Based on the findings and recommendation made in the previous chapter of the report, the action plan for scholarship programs to enhance the education and skill of the deserving employees is given here as under:REASONS 1.The BoK has about 400 employees and most of them are simple graduates. 2. Persons holding degrees of foreign universities are not keen and willing to join the BoK. They are always trying to join the multinational companies or foreign banks. REMEDIES The following remedies are suggested to cope with the situation. • The BoK should stress on education and experience. • The BoK should constantly give incentives and opportunities to its employees to enhance and improve their education profile.

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For this purpose the best option, which the BoK can avail, is to started scholarship program for its employees to study in country’s best universities or aboard to get degree of MBA or MBA- banking and finance and ph.D etc.

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BIBLIOGRAPHY Decenzo, David A, and Stephen P. Robbin. (1996) Human Resource Management. New york: John Wiley And Sons, Inc New York: Mc Graw--- Hill Book Company. Mamoria, C.B., Dr (1987). Personal Management (5th edition). Bombay: Himalaya Publishing House. Koontz, Hoaried, Donnell, Cyrilo and Weihrich, Heinz. (1984). Management

(5th

edition).New York:

McGraw---Hill

Book

Company. Nasir, M Saeed (1996). Banking, Currency and Finance, Sixth edition. Faisalabad: Nafees Printing Press. The Bank of Khyber Employees Service Rules (1998)The Bank of Khyber, Annual Report, 2003 The Bank of Khyber, personal and Administration Department Manual, 2000. The Bank of Khyber, Recruitment policy 2000. http://www.thebankofkhyber.com.pk Noor Rehman. (1997-1999). An Internship Report on the The Bank of Khyber. IMS, Peshawar. Waheed Zaman (2000-2002). An Internship Report on The Bank of Khyber. Roger Le E Rey Miller (1985). Modern Money and Banking in Pakistan. N.Y, McGraw---Hill Book Company. The Bank of Khyber, Information Memorandum 1998. Asfar H. Siddiqi, (1993) practice and Law of Banking in Pakistan.

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1