Download - Final Report of Prime Bank

Internship Report On Prime Commercial Bank Limited

Presented To: Madam Naila Hafeez

Presented By: Nouman Saleem (011114)

Internship report 1

ACKNOWLEDGEMENT

All praises for Almighty Allah who is “THE CREATOR” of whole of the

universe and admires to our Holy Prophet Muhammad (Peace be Upon Him) who

taught us every thing of this life and the life thereafter.

Now it is our responsibility to convey the “WORDING OF SUCCESS” to whole

of the Ummah. As it was indicated in the last Address of our Holy Prophet (Peace

be Upon Him). And the graves of “FELLOW BEINGS” are the proof of the

completion of this responsibility.

I am thankful to my respected internship coordinator Madam Naila Hafeez who

gave me an opportunity to do my internship at Prime Commercial Bank Limited. I

am thankful to MR.Anjum Saeed (Branch Manager), who allowed me to do

internship in New Garden Town Branch. I am thankful to Mr.Abdi, Mr.Naveed,

Mr.Akbar, Mr.Kamran, Mr.Waqar, Miss Qurrat and Miss Shazia, who helped me

during my internship.

Internship report 2

Executive Summary

This Report on Prime Commercial Bank (PCBL) is based on observation and

information gathered during six-week internship at its New Garden Town Branch

Lahore.

I did my internship from 1st October 2002 to 11th November 2002.

This report contains various important aspects of internship learning. It contains

the history of bank & history of New Garden Town Branch, various depts.

industry analysis & internship assignment details.

The history of bank includes its start, vision, mission, philosophy, branches,

ethics, technology etc.

Then the details of various depts. are given. These are Accounts Dept, Account

Opening, Credit, Financial Services Dept etc.

The industry Analysis includes SWOT Analysis, PEST Analysis, Life Cycle,

Benchmark etc.

Then next part of the report is about internship assignment that covers the

description of the assignment and duties performed by me during my internship in

different departments of the Bank i.e. Accounts Opening, Clearing, Accounts,

Cash, etc.

In finding and analysis section I discussed the things that I observed during my

internship.

In the end, recommendations and conclusion is given and copy of Internship

Certificate is also attached.

Internship report 3

Table of Contents

Internship report 4

INTRODUCTION OF BANKS

Banks are the financial institutions. Some authors say that the word bank is

derived from the words ‘Bancus’or‘Banque’ which means a bench. The

explanation on of this origin is attributed to the fact that the Jews in Lombardy

transacted the business of money exchange on the benches in the market place and

when the business failed the ‘banco’ was destroyed by the people. Incidentally the

word ‘Bankrupt’ is said to have been evolved from this practice.

STATE BANK OF PAKISTAN

It is the central bank of the country and was established on July 1, 1948. The state

bank provides the policy guidelines and ensures that the money market operates on

sound professional basis.

Banks in Pakistan

Major banks in Pakistan are as follows

BANKS in PAKISTAN

1. Muslim Commercial Bank Limited http://www.mcb.com.pk

2. National Bank of Pakistan http://www.nbp.com.pk

3. United Bank Limited http://www.ubl.com.pk

4. Askari Commercial Bank Ltd. http://www.askaribank.com.pk

5. Prime Commercial Bank Ltd. http://www.primebankpk.com

6. Bank of Punjab http://www.punjabbank.com

Internship report 5

7. ABN AMRO Pakistan http://www.abnamro.com.pk

8. Allied Bank of Pakistan http://www.abl.com.pk

9 Habib Bank Limited http://www.habibbankltd.com

10. Bank Alfalah http://www.bankalfalah.com

11. Union Bank Limited http://www.unionbankpk.com

12. PICIC Commercial Bank Limited http://www.picic.com/

13. Platinum Commercial Bank Limited Web site NA

14. Metropolitan Commercial Bank Ltd. http://metrobank.com.pk/

15. Soneri Bank Limited http://www.soneri.com

16. Institute of Bankers Pakistan http://www.ibp.org.pk

17. Citi Bank Pakistan http://www.citibank.com.pk

18. Habib Bank AG Zurich http://www.habibbank.com

19. Emirates Bank PK http://www.emiratesbank.com.pk

20. Bank Al Habib http://www.bankalhabib.com

21. Faysal Bank Ltd. http://www.faysalbank.com.pk/

22. First Women Bank Limited. http://www.fwbl.com.pk

23. Bolan Bank Limited http://www.bolanbank.com

24. Bank Al-Falah http://www.bankalfalah.com

Internship report 6

25.StandardChartered http://www.standardchartered.com/pk/index.html

Prime Commercial Bank Limited

History

Prime Bank is the vision of a group of Pakistani professionals with extensive

domestic and international banking and finance experience. They teamed up in

1992 with a select group of successful and like-minded business houses in

Pakistan and overseas. Some of the foreign investors belong to a highly regarded,

very sizeable and well-diversified business group of Saudi Arabia.

During the initial years, Prime Bank’s strategy was focused on continuing

improvement of internal procedures and operating structures, to ensure a greater

control over the quality of its operations.

Commercial Banking activities were initiated at the time of inception in 1992.

During 1993, two more business divisions i.e. Corporate Banking and Financial

Services were added. By 1996, Prime Bank’s countrywide network of seventeen

Branches was in place and Consumer Banking activities were accordingly

launched. Under the Bank’s on going branch expansion program fifteen new

branches have been added during the years 2001 and 2002 while one more branch

will open in December 2002. This would raise the total number of branches to

thirty three focusing primarily on the middle market commercial banking segment

while blending in the fast growing consumer banking market.

Total Assets of Prime Bank during the period from June 1992 to September 2002

grew at an annual compound rate of about 36 percent to Rs.19.5 billion. Within

this period, Shareholders’ Equity grew from Rs.300 million to Rs.1.5 billion,

Deposits to Rs.13 billion and Advances (net) to Rs. 8.1 billion. Profit before tax

Internship report 7

grew from Rs. 1 million for the half year to June 1992 to Rs.235 million for the

nine months ended 30th September 2002.

After ten years of well controlled, yet sure and successful operations, the Bank is

now poised to move forward rapidly to be at the cutting edge of financial services

combining highly efficient delivery systems with continuous product innovation.

Therefore, development of superior Human Skills and the latest Information

Technology platform are the cornerstones of Prime Bank’s overall strategy to be in

the exclusive club of winning banks of the future.

Vision

Prime Bank is a prominent Pakistani Bank, providing exceptional value to its

customers, shareholders and employees. Prime Bank competes in selected market

niches on the basis of superior service, innovation, specialized products and

professionalism.

Business Philosophy

The Bank is committed to be a sophisticated, prominent and professional

institution, providing one window service to its customers. The Bank visualizes

itself as a full service institution catering to the specialized needs of its niche

markets.

Prime Bank's activities primarily cover the provision of dedicated banking services

to the commercial middle market segments of the economy, however, selective

focus is also given to the corporate finance sector. Prime Bank's operating strategy

is focused on continuous improvement of internal procedures and operating

systems to ensure a better control on the quality of its business and operations.

Internship report 8

Mission Statement

Stronger banking relationships, increasing customer confidence.

This bird shows the tendency of Prime bank to try to fly above the sky and provide

the best possible banking facilities to the customers.

ETHICAL VALUESEvery action of Prime Bank is taken by a set of well-defined values, governing

our decisions. Bank commitment is to satisfy customers’ needs must be

fulfilled within a professional and ethical framework. Prime Bank subscribes to

a culture of high ethical standards, based upon development of right attitudes.

Growth

In this rapidly changing environment where customer needs are changing and

their expectations are growing, technology is fast proliferating the distribution

channels and now banking services can be accessed from multiple contact

points. Prime bank believes that balanced growth is the key to survival in

today's global banking environment.

From a humble beginning with just a few branches in 1992, today Prime Bank

has a network of 33 outlets, spread across the country.

Internship report 9

The profits of the bank are ever increasing. Back in 1992,the deposits were 1.2

rs in billions, but in 2001,they were recorded at 10.4 rs in billions. Assets were

only 2.1 rs in billions in 1992,but they were 14.5 rs in billions in

2001.Similarly there was increase in the advances given by the bank. So the

bank is on the road of rapid growth.

Technology at Prime Bank

Technology is rapidly changing the way act and does business. It has played a

key role in enhancing customer expectations, particularly with respect to speed

and quality of service.

Latest technology is available in the various branches of Prime Bank. The

following technologies are available.

Telephones are provided to all employees

Personal computer is provided to all employees

Internet facility is provided to all employees

Latest printers are provided to all employees

Internship report 10

Branches of Prime Bank

It has 33 branches in Pakistan.

Lahore=9 branches

Head Office 77 - Y, Phase III, Commercial Area, D.H.A.

Egerton Road

Gulberg

D.H.A.

New Garden Town

Allama Iqbal Town

Circular Road

Township

Badami Bagh

Ferozepur road


Sialkot =1 branch

Faisalabad=1 branch

Multan=1 branch

Gujranwala=1 branch

Karachi=10 branches

Turbat=1 branch

Quetta=1 branch

Hyderabad=1 branch

Sukhur=1 branch

Islamabad=2 branches

Mirpur (A.K.)=1 branch

Peshawar=1 branch

Rawalpindi=1 branch

Gujrat=1 branch


Organizational Structure

Board of Directors

President & CEO

Vice President

Executive Vice President

Senior Vice President


Group Vice President

Branch Managers

Names of Board of Directors

Mr. Sami Mubarak Baarma Chairman

Mr. Saeed I. Chaudhry President & Chief Executive Officer

Mr. Saleh Hassan Ali Hussain Director & Chairman of Audit Committee

Mr. Bilal Hakim Director & Chairman of Executive Committee

Mr. Abdul Elah A. Mukred Director & Member Audit & Executive Committees

Mr. Tariq S. Asghar Director

Mr. Tariq Iqbal Khan Director

Ms. Shaheen Ali Secretary to the Board


http://primebank.com.pk/board.html#Shaheen

http://primebank.com.pk/board.html#Shaheen

http://primebank.com.pk/board.html#Tariq%20Iqbal

http://primebank.com.pk/board.html#Tariq%20Iqbal

http://primebank.com.pk/board.html#Tariq%20Asghar

http://primebank.com.pk/board.html#Tariq%20Asghar

http://primebank.com.pk/board.html#Murked

http://primebank.com.pk/board.html#Murked

http://primebank.com.pk/board.html#Bilal


http://primebank.com.pk/board.html#Saleh

http://primebank.com.pk/board.html#Saleh

http://primebank.com.pk/board.html#Saeed

http://primebank.com.pk/board.html#Saeed


http://primebank.com.pk/board.html#Razzak

http://primebank.com.pk/board.html#Razzak

Financial Analysis

PRIME COMMERCIAL BANK LIMITEDBALANCE SHEETAS AT DECEMBER 31, 2001

2001 2000Rupees in '000'

ASSETS

Cash and balances with treasury banks 1,344,600 679,196 Balances with other banks 766,587 674,662 Lending to financial institutions 790,000 397,372 Investments 4,138,400 1,983,892 Advances 6,853,020 6,794,059 Provision against non-performing advances (613,872) (536,234) Others assets 772,802 561,040 Operating fixed assets 211,520 148,859 Deferred tax assets 262,618 205,400

14,525,675 10,908,246

LIABILITIES Bills Payable 402,051 284,617 Borrowings from financial institutions 2,231,892 1,163,117 Deposits and other accounts 10,366,688 8,264,168 Sub-ordinated loans - - Liabilities against assets subject to finance lease - 3,473 Other Liabilities 97,466 64,943 Deferred tax liabilities - -

13,098,097 9,780,318

NET ASSETS 1,427,578 1,127,928


REPRESENTED BY:

Share Capital 876,818 674,475 Reserves 409,931 453,434 Unappropriated Profit 93 19

1,286,842 1,127,928 Surplus on revaluation on securities 140,736 -

1,427,578 1,127,928

PRIME COMMERCIAL BANK LIMITEDPROFIT AND LOSS ACCOUNTAS AT DECEMBER 31, 2001

2001 2000Rupees in '000'

Mark-up/return/interest earned 1,155,664 1,060,942 Mark-up/return/interest expensed (697,260) (683,258)

458,404 377,684

Provision for non-performing loans and advances

(89,281) (64,060)

Provision for diminution in value of invest. written back

600 -

Bad debts written off directly - (1,579)

(88,681) (65,639)

369,723 312,045

Non mark-up/interest income Fees, commission and brokerage income 151,184 130,593


Dividend income 327 1,107 Income from dealing in foreign currencies 78,158 55,223 Other income 3,736 5,513

Total non mark-up/interest income 233,405 192,436

603,128 504,481

Non mark-up/interest expense Administrative expenses (361,271) (326,161) Other provision/write-offs - (13,700) Other charges (760) (6,008)

Total non mark-up/interest expense(362,031) (345,869

Extraordinary/unusual items - -

(362,031 (345,869)

Profit/(loss) before taxation 241,097 158,612

Taxation - Current (133,000) (165,000) - Prior years' (12,337) 80,633 - Deferred 56,837 21,863

(88,500) (62,504)

Profit after taxation152,597 96,108

Unappropriate profit brought forward 19 411

Profit available for appropriations 152,616 96,519


Credit Ratings

It has a crediting rating of AA1.Which means that PCBL is considered to be good

by PACRA.

New Garden Town Branch

I did my internship at the NGT Branch. it was founded back in 1997.it has all the

latest technologies and its performance has been very good.

Its location is very good.it is situated near KFC .So its location is very ideal. Its

address is GROUND FLOOR, BLOCK #2,AWAMI COMPLEX, USMAN

BLOCK, NEW GARDEN TOWN, LAHORE.

The hierarchy in that branch is as follows

Assistant officer

Deputy officer

Officer

Assistant manager

Manager

Branch manager


Various depts. at Prime Bank

The following are the main depts. at PCBL

Accounts

Account opening

Credit

Financial services

Audit

Clearing

Cash

Foreign trade

Details

Account opening

The opening of an account is the establishment of banker-customer relationship.

By opening an account at a bank a person becomes a ‘customer’ of the bank.

Types of customers

1) Individual’s account:

Individual’s account is operated by a single person.

2) Sole proprietorship:

In sole proprietorship there is only one account owner of the company, the

owner operates the account.

3) Partnership Firm’s account:

Partnership is the relation between persons who have agreed to share the

profits of the business carried on by all or any of them acting for all. There a

partnership can be created by a written agreement. This agreement between


partners is called partnership deed. This partnership deed is a best document

for opening partnership/firm’s account.

4) Companies:

Company is an association of individuals for the purpose of profit,

possessing a common capital contributed by the members constituting it,

such capita being commonly divided into the shares, of which each posses

one and more and which are transferable by the owner.

Process of Account Opening

When a customer comes to open his account in the bank, he shows his NIC to the

concerned person. He has to provide the reference of any employee of

PCBL.Otherwise he can’t open his account in the bank. Then he fills the account

opening form. He can open his account in currencies like PKR, US $, GBP, DM

etc.the form has a signature card, requisition slip and a paper of terms and

conditions in it. He has to choose whether to fill the Affidavit or not. It means that

the customer wants to give ZAKAT on his own will.min. amount for the current

account is Rs.1000 and for the saving account is Rs.5000.then stamping is done on

the form and account is opened.

Operation of Account

When the accountholder comes to bank, he gives the requisition slip to the

concerned person. Then sign verification is done. He can get the cash or can ask

for a new chequebook. He can get the statement of his account as well.


Types of Deposits

Primax Classic Primax Anchor

Profit is paid Monthly on Daily Product BasisProfit is paid Monthly on Minimum Balance

TiersProvisional

Rates Tiers Provisional

Rates

Rs.10,000,000 and above

Rs. 1,000,000 to Rs.9,999,999

Rs. 100,000 to Rs. 999,999 Rs. 1 to Rs. 99,999

7.00%

6.75%

6.50% 1.00%

Rs.50,000,000 and above

Rs.25,000,000 to Rs.49,999,999

Rs. 5,000,000 to Rs.24,999,999

Rs. 500,000 to Rs. 4,999,999Rs. 1 to Rs. 499,999

7.75%

7.50%

7.25%

7.00% 1.00%

Primax Exclusive

is a specialized Term Deposit Scheme (Profit is paid on maturity)

Tiers 3 Months 6 Months Rs. 5,000,000 and above

Rs. 1,000,000 to Rs. 4,999,999

Rs. 100,000 to Rs. 999,999 Rs. 25,000 to Rs. 99,999

8.50%

8.00%

7.75% 7.25%

8.75%

8.50%

8.00% 7.50%

SPECIAL NOTICE DEPOSITSOTHER TERM DEPOSITS

Minimum Balance Rs.5,000.00 (Profit is paid on maturity)Minimum Balance Rs.5,000.00 (Profit is paid on maturity)

7 to 29 Days Notice 30 Days Notice

5.50% 6.50%

1 Month

1 Year 5 Years


SAVING ACCOUNTS

Profit paid six monthly on minimum balance of the month Rs.5,000 and above Rs. 1 to Rs.4,999

8.00% 1.00%

Profit rates quoted above are provisional per annum with effect from November 01,

Closing of Account:


Whenever an account is closed, a request form is taken from account holder. His

outstanding balance is checked, SS card is taken from the cash counter and then

account-closing checklist is attached with the account opening form. All these

documents are stamped as closed account and then put into the file of closed

accounts. The chequebook and ATM card are being destroyed. The account

closing condition is also entered into the computer system.

Accounts dept.

It is considered to be the most important dept of the bank because all the daily

transactions are checked and scrutinized in this dept.the accounts dept of PCBL

does the following duties.

Day end is given to the accounts dept from the cash dept daily. All

cheaques paid and deposits collected throughout the day are recorded at

cash dept and then all the sheets are given to accounts dept for checking

and scrutiny.

Various batches are made and all the sheets are given to accounts dept for

checking and scrutiny. These batches contain the various activities

performed during the previous day.

Activity sheets are made by cash dept and all the sheets are given to

accounts dept for checking and scrutiny.

All the income and expense vouchers are made by the accounts dept.

The bank receives various cheques in a day and they are sent to the

accounts dept for sorting.

Various account holders deposit heavy amounts of money in a day and the

deposit slips are sent to the accounts dept for sorting.

All-important files are kept at the accounts dept.

Clearing dept.


The clearing dept is very important because it handles the cheques of other banks.

for e.g,if a client comes up with a cheque of MCB,then payment is not made to

him and he is sent to the clearing dept.of the bank. Clearing dept of PCBL does

the following duties.

Inward clearing is done and it means the cheques that are send by other

banks or other branches to PCBL.

Outward clearing is done and it means the cheques that are send by PCBL

to others.

These are done according to the rules of NIFT. NIFT is the central

company of SBP for the clearing purpose.

Types of clearing:

Outward clearing

When the bank receives cheques of other local branches of banks, a cheque

deposit slip is filled; the carbon copy is given to the cheque depositor after

receiving, original slip is attached with the cheque. The slip is stamped as

clearance. Then the summary of total cheques received is made. At the day end the

cheques are sorted bank wise and the person who is responsible for clearing takes

all the cheques to the State Bank’s Clearing House. In Clearing House each bank

have their accounts. The cheques of the certain bank are handed over to them who

credit the account of that bank in the State Bank, which gives them cheques. Bank

account is debited and customer account is credited when the cheque is being

cleared.

Inward Clearing

When the bank receives its cheques from other local branches of bank through

clearing house, it checks that whether the cheques are in a proper format and

properly signed. Then that’s banks account in the state bank is credited and that of

its own account is debited.


Daily Activity Process

if a client comes up with a cheque of other banks, he is sent to this dept.then

stamping is done on the cheque and slip is given to the client. Then photocopies

of all the cheques are done .all transactions are recorded in the Excel and then the

daily record sheet is made.

Cash Dept

It is considered to be the most important dept of the bank because all the daily

transactions take place here. It is a very sensitive dept and it is run by the most

experienced persons. The system of cash dept of PCBL is as follows.

Cash dept of PCBL has 3 counters in most of the branches.ist one is for

cheques.the clients give their cheques here and they arte given the token.

Then they wait for their turn.

2nd counter is for the receipts of deposits from the clients

3rd one is for making the payments to the clients.

Cash dept of PCBL performs the following activities.

It deals in TTs.The telegraphic transfer is a request online by the client to

transfer amount from his account to the account of some other client of the

bank.

It deals in DDs.Demand draft is a request by the client to transfer amount

from his account to the account of some other client in some other city.

It deals in pay orders. It’s a request by the client to transfer amount from

his account to the account of some other client in same city.

OVERDRAFT (OD) is the most common form of bank lending. When a

borrower requires a temporary accommodation, his banker allows

withdrawals on his account in excess of the balance, which the borrowing

customer has in credit, and an overdraft thus occurs.


It makes various batches, daily activity sheets, settlement advices between

clients etc.

Foreign Trade Dept

It is considered to be a very important dept of the bank. It deals in the import and

export matters of the bank. The most important document in Foreign Trade is

Letter of Credit.

Letter Of credit (LC):

LC is an undertaking by the issuing bank in the name of beneficiary (exporter to

pay him certain amount subject to fulfillment of terms and conditions laid down in

LC.

A letter of credit is generally a very safe method of obtaining payment provided

the exporter complies with the terms of the credit. While a letter of credit generally

favors the exporter, the importer can also protect his own position by stating

documentation he requires and by specifying shipping date.

Kinds of LC

1) A Revocable Credit:

A revocable credit is one, which may be amended or cancelled without the prior

notice to the beneficiary. The issuing bank retains the right to revoke such a credit,

which may be exercised (1) upon a written request from the applicant for the credit

or (2) on its own, because it considers that it would not be possible to obtain

reimbursement from its customer.

2) Irrevocable Credit:

Irrevocable credit is one, which can be amended, modified or cancelled with the

permission of all the parties involved in LC.


From the point of view of the seller, an irrevocable letter of credit affords him a

greater degree of protection than a revocable letter of credit.

3) Confirmed credit:

If the seller wishes to be sure that once he exports the goods he could obtain

payment therefore he can insist upon the buyer to have the letter of credit

confirmed by a bank in the sellers country. In this situation the issuing bank

requests either its own branch in the sellers country to advise the beneficiary

regarding the establishment of the letter of credit and adds its own confirmation to

the letter of credit.

4) Unconfirmed Credit:

There is no need of confirmation from confirming bank in unconfirmed credit.

5) Red clause Credit:

Red clause LC is mostly used for the import of big plants. A red clause credit

enables an importer not only to set forth-documentary terms in a letter of credit

covering a shipment but also to provide for the exporter to draw upto a specified

percentage of the amount stated in the credit

6) Transferable Credit:

In this type of LC the beneficiary can transfer LC to the third party.

PARTIES IN A TRADE DEAL

Seller (Applicant) The bank’s customer who requests the issue of the

letter of credit i.e. the importer.


Buyer (Beneficiary) The person in whose favor the letter of credit is

issued i.e. the exporter.

LC opening bank The bank that issues the letter of credit at the request

of its customer

LC advising bank A bank in the beneficiary’s country through which the

issuing bank communicates the credit to the beneficiary.

EXCHANGE RATES BULLETIN

D DATE : Saturday23-Nov-02

SPOT RATES

QUOTES VALID UPTO USD 3,000/= OR EQV.

SELLING CURRENCY BUYING BUYING OD TT & OD TT CLEAN T/CHEQUES

58.6000 US DOLLAR 58.4000 58.3136

92.6056 STERLING 92.2895 92.0317

39.6482 SWISS FRANC 39.5129 39.4016

0.476462 JAP. YEN 0.474835 0.473466

15.6250 SAUDI RIYAL 15.5717 15.5327

58.4359 EURO 58.2365 58.0630

FORWARD BOOKING RATES FOR IMPORTS

QUOTES VALID UPTO USD 3,000/= OR EQV.

US DOLLAR STERLING JAP . YEN EURO

1 1MONTH 58.7300 93.5375 0.482299 59.0622


2 2 MONTHS 58.8300 93.4947 0.483127 59.0796

3 3 MONTHS 58.9300 93.4632 0.483954 59.1086

4 4 MONTHS 59.0200 93.4151 0.484698 59.1274

5 5 MONTHS 59.1200 93.3823 0.485526 59.1559

6 6 MONTHS 59.2400 93.3804 0.486516 59.2161

FORWARD BOOKING RATES FOR EXPORTS

QUOTES VALID FOR MINIMUM AMOUNT OF USD 50,000/= OR EQV.

US DOLLAR STERLING JAP.YEN EURO

1 1MONTH 58.4500 92.1698 0.475247 58.1987

2 2 MONTHS 58.5500 92.1284 0.476067 58.2163

3 3 MONTHS 58.6400 92.0824 0.476804 58.2354

4 4 MONTHS 58.7500 92.0671 0.477704 58.2741

5 5 MONTHS 58.8300 92.0042 0.478360 58.2829

EXPORT BILLS BUYING/ F.B.P. NEGIOTIATION RATES (FOR EXPORT BILLS UNDER L/C)

30 DAYS 60 DAYS 90 DAYS 120 DAYS 150 DAYS 180 DAYS

U. DOLLAR 58.2124 58.0964 57.8960 57.7660 57.5448 57.3396

STERLING 91.7855 91.3274 90.8692 90.4111 89.9529 89.4947

EURO 57.9748 57.7369 57.4990 57.2611 57.0232 56.7853

DEPOSIT ENCASHMENT RATES CURRENCY NOTES RATES

RATES


CURRENCY RATES SELLING CURRENCY BUYING

U. DOLLAR 58.5221 C/NOTES C/NOTES

STERLING 92.6346 59.7720 U.S.DOLLAR 57.8160

EURO 58.6743 94.9207 STERLING 90.9052

Financial Services Dept

The financial service dept of PCBL is the one that deals in the shares business &

stock exchange. SHARE is a security of a company that is sold to the public for

the purpose of collecting money for the organization. They are also given to the


employees of the companies. So financial service dept of PCBL is the one that

deals in the shares and securities. This dept operates in the following way.

Operation

This dept operates in the following way.

When a new client comes in to do shares business, IST he opens his account. Then

he can buy the shares of various companies. The most profitable companies

recently are PSO, FFC, PAKTEL etc. after that he can come to this dept or phone

the concerned person to buy or sell his shares. a T.V is placed in the dept so that

the customers can watch the ever changing mode of the stock exchange. Sale and

purchase forma are maintained for this purpose. Mostly the KSE is watched

because LSE etc are the subsidiaries. The person in this dept is an intermediary

party between the broker in stock exchange & the clients. whatever profit is, it is

distributed 50% to broker and 50% to the banker.

Types of Capital

Authorized capital is the one that is given to the registrar for the listing of

the company in stock exchange.

Issued capital is given to the public in form of the shares and securities.

What is Stock Exchange?

It’s a market for sale & purchase of the securities.

Credit dept

It gives loans to others after confirmation of the following.

Guarantee of others

Past record of the customer

Sources of repayment


Industry analysis

SWOT Analysis

Strengths


Team Work

A big strength of PCBL is the teamwork & commitment of all the employees of

the bank.

Good Hierarchy

A big strength of PCBL is the system of management of the bank. its centralized

and its working well.

Good Profitability

A big strength of PCBL is the ever-increasing profitability of the bank. it shows

that the overall performance is improving every year.

Qualified Staff

A big strength of PCBL is its well Qualified Staff. Mostly postgraduates are

working in the bank.

Good Locations

Another strength of PCBL is its locations. Most of the branches are working in

major cities and they are situated at the heart of the cities.

Incentive System

Another strength of PCBL is incentive system. Employees are paid bonuses thrice

a year and special bonus is given to the employees who has performed brilliantly

or has brought profits for the bank.

Good Salaries

Another strength of PCBL is the fact that all the employees are paid very well

according to their experience & ranks.

Good Credit Rating

Another strength of PCBL is Good Credit Rating of the bank. It has a crediting rating

of AA1.Which means that PCBL is considered to be good by PACRA.

Employment Security


Another strength of PCBL is fact that all employees have good job securities.

Most of the employees work for a long period of time when they are selected for

job at the bank.

Orientation

Another strength of PCBL is the fact that orientation is given to all the new

employees so that they can get familiarize to the conditions.

Market Responsiveness

Another strength of PCBL is the fact that bank is Market responsiveness. it

changes its operations according to the changing environment.

Latest Technology

Another strength of PCBL is the fact that bank is using most of the latest

technologies.

Online Transactions

Another strength of PCBL is the fact that bank is that a few branches of the bank

are online.

Weaknesses

No ATM


A big weakness of PCBL is the lack of ATM.Most of the banks are giving this

facility to the customers. But PCBL has not yet started giving the services of ATM

to customers.

No Credit Cards

A big weakness of PCBL is the fact that it does not provide the credit cards. Most

of the banks are giving this facility to the customers. But PCBL has not yet started

giving this service.

Less promotion

A big weakness of PCBL is its less promotion as compared to others. No ads are

shown on T.V.

Fewer Branches

A big weakness of PCBL is the fact that it has only 33 branches in Pakistan.

Whereas big banks have more than 1000 branches in Pakistan

No Evening Banking

PCBL is not providing the evening banking services.

Opportunities


ATM

A big opportunity for PCBL is to provide the ATM services to its customers. That

can increase its image.

Credit Cards

A big opportunity for PCBL is to provide the credit cards to its customers. That

can increase its profitability.

More Branches

A big opportunity for PCBL is to increase the no of branches and promotional

efforts.

Evening Banking

A big opportunity for PCBL is to provide evening banking to clients.

Threats


Exiting Competitors

The existing competitors like MCB, ABL, UNION BANK, SC BANK;

CITIBANK etc are giving a hard time to the bank.

New Competitors

New competitors are a continuous threat for the bank.

Industry Life Cycle


Current Situation

The banking industry is on a rise.Profits and branches are increasing.Therefore,we

can say that the banking industry in on the growth stage.

Porter Model


Banking Industry

GrowthStage

StagesIn LifeCycle

Rivalry among the existing banks is very high. Banks like ABL, PCBL,

UNION BANK, MCB, ACBL, NBP; UBL etc are very close rivals of each

other’s.

Threat of new entrants is very high because new banks like soneri bank

etc are also opening their branches.

Bargaining power of customers is very high.Because the buyers have a lot

of choices in banking sector.

Bargaing power of suppliers is low.Because bank has a lot of choices in

this regard.

Substitutes are available

Benchmark


The benchmark for PBCL is MCB in local banks & Citibank in the foreign banks

in Pakistan.

Customer Analysis

PCBL working in all the provinces.

It’s working in both urban & rural areas.

Its working for all age groups

Its working for all genders

Its working for all for all types of casts

Its working for all income groups

PCBL is working for people of all occupations

Its working for all social groups as well

PEST Analysis

Political Analysis

It’s working under the laws and regulations of the country and it abides by the

rules of the Govt.

Economic Analysis

It’s providing jobs to the people and thus improving the economic conditions of

the country.

Social Analysis

Its providing good services to people and serving the people of the country

through its operations

Technological Analysis

It’s using the latest technology up to a certain extent

Internship Assignment


Learning is the heart of everything. I am the student of MBA.After 5TH semester;

my CGPA was over 2.85.so I was asked to do my internship. It was a great

experience.

The purpose of internship was to learn how practical work is done in

organizations. During MBA, we took lectures, cases, gave away presentations

etc.but practical knowledge is very important. That’s why we were asked to do the

internship.

DESCRIPTION OF ASSIGNMENT


I was asked to undergo six-week internship with the Prime Commercial Bank

Limited at its New Garden branch Lahore. I worked from 1 st October 2002 to

11th November 2002 in following departments.

Accounts Department

Cash Department

Clearing Department

Account Opening Department


Duties & Responsibilities

Accounts Dept


My job was to write down the dates and months on the monthly settlement

advice books.

I checked various batches.

I checked the various vouchers.

I dealt in cheques. I sorted them, checked dates, stamps and signatures of

concerned persons.

I dealt in pay orders, DDs and TTs.

My task was to make the debit vouchers

Cash Dept

I gave away the tokens to the clients

I made various settlement advices. Those included that of payment

approved, treasury, online cheques etc

I made various debit & credit vouchers.

I recorded various daily transactions


I checked out the share rate and dealt with the clients of bank in that regard.

I filled out the sale and purchase order forms.

I received phone calls and give the rates of various shares to the clients.

I also feeded the activities in the Excel.

Clearing Dept

I learnt that, What is clearing

The procedure of clearing and posting.


What three stamps are required for clearing i.e. stamps (clearing, crossing,

endorsement or)

Valid Date of Check

Stale Check

Out of Dated Check

Difference between Pay order and DD (Demand Draft)

Account Opening Dept

I made the account opening forms

I received the phone calls of various clients & give them their balances

I did the entries in the registers for the issuance of the new chequebooks

I also issued the chequebooks

I checked various batches


PROBLEMS AND LIMITATIONS

Lack of Staff

Staff of branch is not sufficient. If someone goes on leave or does not come to

work due to some emergency then there is no one to replace him/her. And some

other staff member has to look after his work besides his own. This causes delay in

completion of work for which not only customer suffer but that staff member has

to sit late to complete the work.

Aptitude Towards Internees

The attitude of the most of the senior staff is not cooperative towards the internees.

They do not guide the internees.

No Separate Room for Prayers

There is no separate room for saying of prayers in the bank. It causes a lot of

trouble especially for female workers.


FINDINGS AND ANALYSIS

Working Environment

Working environment of the branch was very good and one really enjoys working

under that environment.

Working Relationship

There was good relationship among the staff. They cooperate and share their

knowledge with each other.

Duty Changes

The duties of the staff were changed very frequently.

Dependence

The work of the most of the staff depends upon other. Most of the staff has not

full authority to execute their work and have to wait for completion of work first

by another.


Recommendations

Today is the age of latest technology and bank has not yet started the ATM

network. So it should be started.

There is lack of staff. Especially the person working in the accounts dept is

doing the work of 3 persons. So staff should be increased.

PCBL should provide the credit cards to its customers. That can increase its

profitability.

A big opportunity for PCBL is to provide evening banking to clients.

The bank should start some more incentive programs to motivate its employees.

Conclusion


In the end, we can say that the future of prime bank is very much bright. They

teamed up in 1992 with a select group of successful and like-minded business

houses in Pakistan and overseas. Some of the foreign investors belong to a

highly regarded, very sizeable and well-diversified business group of Saudi

Arabia. After that they expanded the network .Now bank has 33 branches. A lot

of new branches will open soon. Profits are on the rise, assests are on the rise,

deposits and advances are on the rise. So we can say that the prime bank is

going to be one of the top commercial banks of Pakistan after a few years.

Sources of Information


Internet

Journals

Books

Practical internship information

Annual report of PCBL


Download - Final Report of Prime Bank

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