Economy

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Roll of bank in the Economy
Banking is one of the sensitive businesses all over the world. Banks play very important role in the economy of an every country. Banks are custodian to the assets of the general masses. The banking sector plays a significant role in a contemporary world of money and economy. It influences and facilitates many different but integrated economic activities like resources mobilization, poverty elimination, production & distribution of public finance, financing of development projects, enhancing trade activities, climate for capital formation in the Country and many other things. Banks are always there to serve you better if you want to purchase a car or home or want to fulfill any other requirement. If you want financial help for play ground or any educational or healthy societal activity, banks will be there; similarly if there is an industrial project or agricultural development of the country the sponsor-ship of banks is very much involved. Banks play very positive and important role in the overall economic development of the country.

Economic Review
Domestic economy which had shown sustained good performance over the past five years faced a grim 2008, because of ever rising inflation, severe power shortages, an erratic stock market, deteriorating law and order situation, slowdown in the large scale manufacturing sector, a sharp hike in interest rates, and widening current account deficit. As a consequence of these developments, the pace of economic growth was glacial, at best. Investors were precautious in investing. Increasing fuel and raw material prices and power outages retarded industrial output, fiscal performance indicators weakened, domestic and external debt mounted and foreign exchange reserves remained under constant pressure. Overall inflation soared 25 % from 8.8 % in December 2007, fiscal and current deficit reached 7.4 % and to 8.4 % of GDP respectively. These structural imbalances depleted foreign exchange reserves to around 6.5 billion dollars by the end of November from 15.7 billion dollars in January 2008. The Pak Rupee weakened against the US dollar. With the enormous economic challenges still at the forefront for which the International monetary fund (IMF) support has been sought for stabilization, the betterment of economic fundamentals can be forecast but with many strict strings. Betterment in law and order situation,

weeding out of terrorism, relative political normalcy and increased inflows as a result of aid package, growing foreign remittances and mobilization pledges by friends is likely to facilitate Government spending on infrastructure development, improving job creation and social uplift which in turn will impart an improved complexion to the economy

The Bank of Punjab
The Bank of Punjab was formed under The Bank of Punjab Act, 1989. It was given the status of a scheduled bank by the State Bank of Pakistan (SBP) on September 19, 1994. It is principally engaged in commercial banking and related services with its registered head office at Lahore. The Bank has 7 regions and 272 branches at all over major locations in the Punjab. The Bank provides all types of banking services such as Deposits in Local Currency and client foreign currency, remittances, and advances to business, trade, industry and agriculture. The Bank of Punjab has indeed entered a new era of science to the nation under experience and professional hands of its management. The Bank of Punjab plays a vital role in the national economy through mobilization of hitherto untapped local resources, promoting savings and providing funds for investments. The bank offers attractive rates of profit on all deposits, opening of foreign currency accounts and handling of foreign exchange business for example imports, exports and remittances, financing, trade and industry for working capital requirements and money market operations. The lending policy of bank is not only cautious and constructive but also based on principles of prudent lending with maximum emphasis on security. Mission Statement “To exceed the expectations of our stakeholders by leveraging our relationship with the government of Punjab and delivering a complete range of professional solutions with a focus on program driven products and services in the agriculture and middle tire markets through a motivated team.” Vision Statement “To be a customer focused bank with service excellence.”

Business Volume These are the quick facts of BOP’s business volume. 2008 Assets
Liabilities Net Assets Investments Advances 185,909,120 182,165,995 3,743,125 22,711,980 131,731,158

2007
235,001,100 216,005,306 18,995,794 73,461,695 133,893,585

2006
164,855,137 148,729,423 16,125,714 28,233,211 101,319,954

Staff Strength The total number of employees in the organization is approx 6500. Services: These are the services provided by the BOP. ATM Facility, Letter of Credit, Pay Order, On-Line Banking, E-Banking, Debit Card, Consumer Financing, Agriculture Financing, Corporate Financing, Commission free Remittance, Demand Drafts, Collection of Utility, Lockers Facility, Organizational Structure Competitors: All national and international banks are considered to be a competitor of BOP such as MCB, Bank Alfalah, HBL, NBP, Silk Bank, UBL etc.

Organizational Structure
Head Office and the main branch of BOP are in Gulberg 3, & Egerton Road, Lahore Respectively. BOP support horizontal structure within organization in which Board of Director are at top level then came President then Department Head / GM, Department Managers, Staff and lower staff. At the level of Decision-making and implementation, senior management of the bank is drawn from highly accomplished bankers with rich experience in the banking profession both domestic and international. The entire responsibilities of policy formulation and management have been placed, under the law, with the Board of Director. Furthermore Punjab Government try to not to interfere in bank routine procedure work in order to overcome the possibility any of pressure which may be put on the management of the bank in respect of recruitment of staff or provision

of credit. These instructions have become an essential part of the culture of the bank. The graphical form of BOP management structure is as under: BOD President Department Head / GM Department Managers Reporting Staff

Analysis
Computer system The system has not totally shifted on computer. Manual procedure is still there hence computer facility is not fully availed. There should be a system at each counter for quick processing. Right person for right job During my internship I have observed the person who has came as customer Relationship Officer was acting as Cashier. It should not be like this. The person should be posted according to his qualification, profession skills and experience. Customer problem People have to wait for en-cashing their cheques for about 10-20 minutes, which is not good for the reputation of bank, the delay is due to manual work. Therefore I suggest that computers and other electronic machines should be installed in bank so that time could be saved. 5.1.4Deficiency in management

I felt at some places the BOP need to have employees, because a lot of work is to be done by a single employee that will result in work overload and employee might not perform his/her job with full devotion

SWOT Analysis
Strength •272 branches •Schemes •Diversification of investment •Foreign reserves Weakness •Lack of communication •Lack of trust •Lack of loyal customers •Lack of conflict handlings Opportunities •To seek new customers •Lending •Investment •Mark up/ profit Threats •Competitors •Low security •Economic instability •Political instability

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