MC100207452 MBA FINANCE

Presentation On The Bank Of Punjab

Brief Introduction of the Organization The bank of Punjab was first time Register in 1924 The bank was established in 1989, under the “The Bank of Punjab Act” 1989, and was given the status of a retail bank in 1994. The majority of share of BOP holds by the government of Punjab that is why it is also called the Sámi-government bank BOP provide Commercial Banking and retail banking services to its clients

The Bank of Punjab (BOP) head quartered in BOP tower,  Main Boulevard , Gulberg, Lahore The Bank of Punjab is working as a scheduled bank with its 284 branches in all main cities of the Pakistan The Lahore Chamber of Commerce & Industry (LCCI) awarded the Bank "LCCI Achievement Award" 2006.  BOP is trying to improve its service by implementing new technological application solutions and expand its branch network all over the Pakistan .

Business Volume of BOP Total Assets 280,997,531 Total Liabilities 270,224,941 Shareholder’s Equity 7,202,930 Total Income 347,973 Advances 127,129,501 Deposits 237,896,700 Earning per Share 0.66 Rs

BOP Competitors The bank of Khyber National Bank of Pakistan Habib Bank Limited Standard Chartered Bank Limited United Bank Limited MCB Bank Limited Allied Bank Limited Other Banks

Organizational Hierarchy Chart Chairperson Board of Directors Chief Executive Officer Executive Committee Executive In -charges Regional Manager North Regional Manager South Branch Manager

Training Program

Accounts Opening Department Fill account opening form Take signature of the Customer on SS card. NADRA verification is obtained Take CNIC copy form customer Signatures Verification Fill Cash deposit slip Fill Cheque deposit slip

Accounts Department I learned following things in the department of Accounts First I sorted out the vouchers of last day. Match these sorted vouchers with the IT department generated reports. Ticking (matching of voucher with computer generated reports )

Clearing Department I learnt the working of clearing department I learned the procedures of Outward Clearing I learned the procedures of Inward Clearing

Ratio Analysis

Net Profit Margin = (Net Profit after Taxation / Net Sales)*100 Ratio Analysis BANK OF PUNJAB Net Profit Margin = (Net Profit after Taxation / Net Sales)*100 Net Profit Margin Year 2009 Year 2010 Year 2011 (10,069,005) /15,641,832 = (64.37 )% (4,029,277) /18,220,175 = ( 22.114) % 347,973 /20,685,011 = 1.69%

Gross Spread Ratio = (Net Interest Margin / Net Interest Earned) * 100 Ratio Analysis BANK OF PUNJAB Gross Spread Ratio = (Net Interest Margin / Net Interest Earned) * 100 Gross Spread Ratio Year 2009 2010 2011 -3380662 /15,641,832 = -21.62% -581467 /18,220,175 = -3.19% -388260 /20,685,011 = -1.88%

Non interest Income to Total Income Ratio Analysis BANK OF PUNJAB Non interest Income to Total Income Ratio = Non Interest Income / Total income Non interest Income to Total Income Year 2009 2010 2011 2,218,749 /17860581 = 0.13times 1,883,333/20103508 = 0.09 times 1,989,708 /22674719 =0.088 times

Spread Ratio = Interest Earned / Interest Expense Ratio Analysis BANK OF PUNJAB Spread Ratio = Interest Earned / Interest Expense Spread Ratio Year 2009 2010 2011 15,641,832 /19,022,494 = 0.83 times 18,220,175 /18,801,642 =0.97 times 20,685,011 /21,073,271 =0.99 times

Return on Assets= (EBIT / average Total Assets) x 100 Ratio Analysis BANK OF PUNJAB Return on Assets= (EBIT / average Total Assets) x 100 Return on Assets Year 2009 2010 2011 4648574/294244051.5*100 =1.58% 12615246/331264999.5*100 =3.81% 21596018 /369689038.5*100 =5.85%

DuPont Return On Assets Ratio Analysis BANK OF PUNJAB (Net Income / Sales) x (Sales / Average Total Assets) * 100 DuPont Return On Assets Year 2009 2010 2011 (10,069,005) /15,641,832) x (15,641,832/294244051.5) x 100 = -3.43% (4,029,277) /18,220,175) x (18,220,175 /331264999.5) x 100 = -1.22% (347,973/20,685,011) x (20,685,011/369689038.5)x 100 = 0.095%

Return on Total Equity Ratio Analysis BANK OF PUNJAB Return on Total Equity = (Net Profit after Taxation / Average Total Equity) x 100 Return on Total Equity Year 2009 2010 2011 (10,069,005)/ 15646082.5*100 = -64.36% (4,029,277)/ 9511986*100 = -42.36% 347,973/ 10901931*100 = 3.192%

Debt Ratio = Total Liabilities / Total Assets Ratio Analysis BANK OF PUNJAB Debt Ratio = Total Liabilities / Total Assets Debt Ratio Year 2009 2010 2011 210,493,920 /216,669,863 =0.98 Times 225,521,803 /229,190,273 = 0.99 Times 270,224,941 /280,997,531 =0.97 Times

Debt/Equity Ratio = Total Liabilities / Total Shareholder Equity Ratio Analysis BANK OF PUNJAB Debt/Equity Ratio = Total Liabilities / Total Shareholder Equity Debt/ Equity Ratio Year 2009 2010 2011 210,493,920 /(4469086) = (47.099) Times 225,521,803 /(7052523) = ( 31.977) Times 270,224,941 /(6864911) = ( 39.363) Times

Times Interest Earned = EBIT / Interest Expense Ratio Analysis BANK OF PUNJAB Times Interest Earned = EBIT / Interest Expense Times Interest Earned Year 2009 2010 2011 (10,069,005) / 15,641,832) =-0.65 Times (4,029,277) /18,220,175 ) =-0.23 Times (347,973 / 20,685,011 ) =0.02Times

Advance / Deposit Ratio Ratio Analysis BANK OF PUNJAB Advance / Deposit Ratio = Total Advances / Total Deposits Advance / Deposit Ratio Year 2009 2010 2011 121,315,799 /190,858,215 = 0.64 times 120,818,021 /208,176,988 = 0.59 times 127,129,501 /237,896,700 = 0.54 times

Operating Cash Flow Ratio Ratio Analysis BANK OF PUNJAB Operating Cash Flow Ratio = Cash Flow from Operations / Current Liabilities Operating Cash Flow Ratio Year 2009 2010 2011 25,323,928 /158617253 = 0.16 times 2,949,012 /168232133 = 0.02 times 32,984,625 /203705193 = 0.17 times

BOP Bank Limited does not pay dividend Dividend per Share BOP Bank Limited does not pay dividend

Earning per Share = Net Income / Number of Share Outstanding Ratio Analysis BANK OF PUNJAB Earning per Share = Net Income / Number of Share Outstanding Earning per Share Year 2009 2010 2011 (10,069,005) /5,287,97.4 = -19.04 Rs (4,029,277) /5,287,97.4 = -7.61 Rs 347,973 / 5,287,97.4 = 0.658 Rs

Price/ Earning Ratio = Market Value per Share / Earning per Share Ratio Analysis BANK OF PUNJAB Price/ Earning Ratio = Market Value per Share / Earning per Share Price/ Earning Ratio Year 2009 2010 2011 19.5 /(19.04) = -1.024 Rs 9.81 /(7.62) = -1.287 Rs 5.41 / 0.66 = 7.40 Rs

Conclusion The administration of IT department is not high qualified whenever any confusion or problem is creating with the systems; they call IT specialist from out side the branch. . The majority of share of BOP holds by the government of Punjab The investments, which are the part of earning assets, also decline. Almost 90% branches of BOP are located in Punjab even in Karachi the hub of economic activities of Pakistan only 11 branches, because of political influence. BOP Bank Limited does not pay dividend. Bop is trying to improve its ratios

Recommendations Company need to improve its Net interest margin to improve its gross spread ratio BOP Improve its TIE ratio by improving its earning BOP should increase customer deposits to improve its debt to equity ratio BOP offer advance to its customers to improve its advance to deposit ratio Increase in interest margin to improve its GSR BOP should expand its services and operation to improve its all ratios.