final report of prime bank
TRANSCRIPT
Internship Report On Prime Commercial Bank Limited
Presented To: Madam Naila Hafeez
Presented By: Nouman Saleem (011114)
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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.
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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.
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Table of Contents
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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
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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
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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
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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.
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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.
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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
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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
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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
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Organizational Structure
Board of Directors
President & CEO
Vice President
Executive Vice President
Senior Vice President
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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
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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
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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
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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
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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
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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
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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.
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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
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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:
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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.
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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.
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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.
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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.
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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.
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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
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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
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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
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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
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Industry analysis
SWOT Analysis
Strengths
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
Financial Services Dept
Duties & Responsibilities
Accounts Dept
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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
Financial Services Dept
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.
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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
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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.
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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.
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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
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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
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Internet
Journals
Books
Practical internship information
Annual report of PCBL
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