Internship Report

INTERNSHIP REPORT
ON
J.S BANK LIMITED
BZU Multan
4. Dedication
I would like to dedicate this internship report to my family who have always support me
throughout in my academic career. And give possibility for my dream to come true.
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5. Acknowledgement
Although only my name appear on the cover but this work was done with the invisible
guidance of ALLAH. I am thankful to ALLAH for giving me analytical approach & skill
to construct the underlying internship report.
Along with my efforts was a collaborative effort of seniors.
Thanks to my brother Jahan Zaib Javed Who support my activities regarding internship
and report. I am grateful to kind and honorable Mr. Taimoor Khan (Branch manager)
who give me an opportunity to work in such a reputable organization.
I am also thankful to Mr. Bilal Amin (B.S.O), Mis. Asma Tafail (R.O), Mr. Safdar (Teller),
Mr. Shafique (Operations manager). This report can not complete without their kind
guidance.
BZU Multan
6. Executive summary
I completed my internship report under different parts. Firstly the introduction, history of
J.S Bank limited, describe about offered product lines, explain all departments where I
complete my internship program and complete different tasks.
I made the complete ratio analysis and trend analysis for three years from 2011 to 2013.
In 2011 analysis does not provide satisfactory results.
I suggest some recommendations in the last part of internship report on the base of
financial ratios. J.S Bank limited has positive working capital in all the three years.
References and sources used are also described in last. Scanned copies of all financial
statements used for financial analysis provided in Annexes.
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7. Table of contents
Dedication................................................................................................................
Acknowledgement..................................................................................................1
Executive summary...............................................................................................2
Brief introduction of the Organizations Business Sector......................................4
Overview of the organization.................................................................................5
(a) Brief history.......................................................................................................5
(b) Organizational Hierarchy chart..........................................................................6
(c) Business volume...............................................................................................7
(d) Product lines......................................................................................................8
e. Competitors:......................................................................................................11
f. Brief Introduction of all the Departments...........................................................11
g. Comments on the organizational structure.......................................................13
Plan of Internship Program:.................................................................................14
a. A brief introduction of the branch (FBL) Where I did my Internship:................14
b. Starting and Ending dates of my Internship:....................................................14
c. Names of Departments in which I got training:.................................................14
Training Program:................................................................................................15
Detailed description of the tasks assigned by me:..............................................15
Balance Sheet.18
Ratio analysis:......................................................................................................20
a). Liquidity ratios:.................................................................................................20
b) Leverage Ratios:..............................................................................................25
c) Profitability Ratios:............................................................................................33
d) Activity Ratios:..................................................................................................45
e) Market Ratios:...................................................................................................47
Future Prospect Of FBL
49
Strengths 50
Weakness.53
Opprtunities... 53
Threats..54
14. Conclusion......................................................................................................56
15. Recommendations for Improvement..............................................................57
16. Reference & Sources used............................................................................58
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17. Annexes:.........................................................................................................59
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4. Brief introduction of the Organizations Business Sector

J.S Bank limited incorporated in Pakistan on October3, 1994 as a public limited
company under companies ordinance 1984. Its shares are listed on Karachi, Lahore
and Islamabad stock exchanges. The Bank is engaged in commercial, consumer, and
corporate banking activities. J.S Bank limited incorporated with authorized share capital
Rs.1.5 billion and 129 branches offices with 2 service centers. It provides services to its
customers in Pakistan four provinces. Under Barkat Islamic brand it provides Islamic
banking services in Pakistan. After its incorporation in Pakistan it progress rapidly and
thus become largest reliable banking service provider. Currently J.S Bank limited paid
up capital is Rs.62.3 billion.
In 1st Jan 2002, the two entities of the group in Pakistan. J.S Bank Limited & AL J.S
Investment Bank Limited merged into one & today only J.S Bank Limited remains as a
larger, stronger & much more versatile institution amongst private banks in the Pakistan.
In fact it is amongst the three largest I terms of equity which after the mergers stands at
over Rs. 4.0 billions. The total balance sheet size of FBL after the merger is in excess of
Rs. 40 billions.
J.S Bank limited play important role in Pakistan for growth of cricket by organizing
National Twenty 20 cup on October 10 th at Gadaffi stadium in Lahore. Also annual report
of FBL for the year 2003 won the third prize in The Best Corporate Report contest in
the service sector, a competition jointly instituted by the institute of Chartered
Accountants of Pakistan & Institute of Cost & management of Pakistan. J.S Bank limited
is a commercial bank which provides customers and client services. Its effective market
research and modern information technology help him in reaching its consumers in no
time. Also timely recovery of loan and efficient credit system facilitate its rapid growth.
5. Overview of the organization

(a) Brief history
J.S Bank limited incorporated year1984 in Pakistan. Syed Naseem Ahmad is chairman
of this bank. J.S Bank limited with approval of State Bank of Pakistan (SBP) take over
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99.37 percent shares of Royal Bank of Scotland (RBS) Pakistan. The RBS Pakistan
recently announce finalization of agreement with J.S Bank limited for the sale of 99.37
percent shares holdings for Rs.4.298 billion, with approval from State Bank of Pakistan.
J.S Bank buys RBS Pakistan for 41m ($51m).
J.S Bank limited deposits in year 2005 are Rs. 74.7 billion, advances amounted to Rs.
62.3 billion; assets totaled Rs.110.3 billion.
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(b) Organizational Hierarchy chart

PRESIDTNT
SENIOR EXECUTIVE
VICE PRISEDENT
EXECUTIVE VICE
PRESIDENT
SENIOR VICE
PRESIDENT
VICE PRESIDENT
ASSISTANT VICE
PRESIDENT
OFFICERS GRADE I, II, III
CLERKS
PEONS
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(c) Business volume
Categories of
No. of
Shareholders
Share
Shares Held
Percentage
%
Individuals
Investment
Holders
12702
7
48,567,659
182,586
6.64
0.02
Companies
Joint Stock
116
2,545,253
0.35
Companies
Directors,
31,742
0.00
8
6
9
134,798
12,866,804
489,288,181
0.02
1.76
66.94
0.00
34
51,456,072
7.04
Chief
Executives
and their
Spouse and
Minor
Children
Executives
NIT / ICP
Associated
Companies,
Undertakings
and
related
Parties
Public Sector
Companies
and
Corporations
Banks, DFIs,
NBFIs,
Insurance
Companies
Modarabas
and
Mutual
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Funds
Financial
11
7,543,004
1.03
Institutions
Leasing
367
0.00
Companies
Insurance
10
43,573,854
5.96
Companies
Modarabas
Mutual
5
6
13,213
325,634
0.00
0.04
Funds
Foreign
39
124,984,701
17.10
Investors
Co-operative
861
0.00
Societies
Charitable
670,104
0.09
Trusts
Others
Total
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12947
180,611
730,909,372
0.02
100.00
Outstanding
Shares
(d) Product lines

1.
J.S Sahulat Current Account:
It allows you to access to your account in any J.S Bank branch without any limitation.
J.S Sahulat Features and Benefits:
Minimum balance is required Rs.5000/ On maintaining monthly average balance of Rs.500000/- offer following services free
of charge:
Chequebook (up to 100 leaves per year)
Pay orders (up to 50 per year)
Monthly account statement
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You can access you account through ATM/ Debit Card also
Example of J.S Bank Sahulat Current account number 02280060001234
2.
J.S Savings Account:
J.S Savings account addresses your basic banking needs. It allows you to get profit on
your savings.
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J.S Savings Features and Benefits:
Minimum balance of Rs.10000/ is required
Profit is calculated on the monthly minimum balance
Profit is paid semi-annually
Un-limited transactions can be made during a month
Example of J.S Savings account number 02281500001234
3 J.S Izafa Term Deposit:

J.S Izafa term deposit account allows you to receive profit on monthly, semi-annually,
quarterly, or annual basis.
J.S Izafa Features and benefits:
Minimum investment of Rs.25000/ is required
Flexible tenure options ranging from 1,3 and 6 months and 1,2,3,4, and 5 years
Allows you to select option of your own choice for receiving profit
This account free from any account maintenance charges
4 J.S Anchor Savings Account:

This account is designed for those customers who want monthly profits on their
account.
Features:
Minimum balance required is Rs.20000/
Profit is calculated on monthly minimum balance
Un-limited transactions can be made during a month
Profit paid on monthly basis
Consumer lending
J.S Home finance:

J.S home finance allows you to get you own home, away from financial worries.
Buying you new Home:
Easy facility for re-payment of loan
Maximum financing available up to 70% of market value of property
Amount payable in between 3years to 20years

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Amount payable in monthly installments
Building of Home:
Financing available is up to 70% value of land plus construction
Amount payable in between 1year to 20years
Repayment of amount in monthly installments
J.S Car Finance:

Due to J.S Car Finance now it is easy to be in the driver seat. It also involves
insurance from reputable insurance company in Pakistan.
Eligibility:
For salaried individuals your age should be between 21 and 60years

For Businessmen: You should be aged between 21 and 65years
Incase you are salaried, or businessmen you have work experience or employment
history of at least 2years
Minimum net income is Rs.30000/ per month
Services:
J.S Bank Limited provides services are listed bellow:
Utility services
Retail services
Value Added services
Payment with J.S Bank, Micronet Broadband DSL Services
Specialized services to priority customers
Now I want to explain some more J.S Bank services.

Demand Drafts:
J.S Bank Limited provides demand draft service to its account holders and non account
holders. For example is any J.S Bank account holder wants to make any other
organization or department then J.S Bank limited help him in this regard by creating
demand draft for certain amount. On amount of Rs.10 to 100000 it charge Rs.150 from
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account holder of J.S Bank Limited. But for non-account holders it charge Rs.800 for
Demand Draft.
PocketMate (Debit Card):

J.S Bank provides easy way to carry cash in form of PocketMate service. J.S
pocketmate provides you the freedom of world wide acceptability at over 29 million
points of sale terminals.
J.S Instant SMS Alerts:
This service provides Instant SMS Alert information about your account when some
transaction made with help of Visa Debit Card or your account locally and globally. It
provides information on cash deposits and withdrawals, bill payment, cheque clearing
and also on Zakat deductions.
e. Competitors:
J.S Bank Limited
National Bank of Pakistan
Muslim Commercial Bank
Bank Alfalah Limited
AL-Habib Bank Limited
Askari Commercial Bank
United Bank Limited
Habib Bank Limited
Meezan Bank Limited
Standard Chartered Bank Pakistan
JS Bank
Soneri Bank
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f. Brief Introduction of all the Departments

Account Opening department:
This department is responsible for account opening of its customers. During my
internship in J.S Bank Limited I observed the general procedure of account opening
which I like to discuss here.
1. Customer relationship Form:
This form helps customer in facilitating account opening in Bank. Customer furnishes
his information regarding name, occupation, address and many other personal
information.
2. Requirements for opening of Account:
Many things involve in this step for account opening I like to mentions here some
requirement which is crucial.
Copy of C.N.I.C attested
Specimen signature card
Source of income
Operations Department:
I observed this department in J.S Bank Limited during my internship period and
Operations manager of this FBL is Mr. Shafique. This department manages all
departments of Bank. Operations manager is responsible for Cash department,
remittances department, and clearing department work.
Remittance Department:
In this department funds transfer from one Bank branch to another same branch. This is
valuable and important service of the J.S Bank Limited which it provides to its
customers.
Remittances Types:
Demand Draft:
This service is providing by J.S Bank Limited in which some certain amount is
transferred to other same branch of the Bank. In this service Bank charge some amount
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for delivering service to its clients. Some organizations or companies demand for this
order to pay.
Telegraphic Transfer:
This tremendous service is provided by FBL to its client facilitating in transferring
amount from one city to other or other country in no time. The remittances take place
through telegram, telex and some times the message is also conveyed on telephone.
TT is used to remit money outside the city.
Payment Order:
It allows you to transfer fund from one J.S Bank branch to other same city branch of
FBL or to any 1-link member bank account using your J.S Pocketmate. Enjoy transfer
of fund with limit of Rs.250000/ daily.
Cash Department:
This department is the backbone of Bank. In this department all receipts and payments
of cash is made. This department for receipts and payments prepare books of account
and ledgers and many other cash sheets.
All bank business is wholly depends on cash and without it becomes impossible to
sustain in this competitive environment. It also deals with collection of utility bills.
Credit Department:
J.S Bank credit department provides financing assistance to commercial, industrial
sectors. J.S Bank also provides assistance to agriculture sector in order to meet
incurred expensed of farmers. Attractive low interest rate is charged on lending by bank.
Interest is charged on the whole amount of a loan. Different documents are required
vary according to financing applicant. J.S Bank also provides consumer financing to its
clients. It extends both short and long term financing facilities designed to fulfill the
individual need of each corporate customers.
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g. Comments on the organizational structure

In J.S Bank Limited flow of power and designations is well organized and processed in
structural way by fulfills the requirements of the organization. Structure of FBL according
to my observation fulfills the requirements of the organization.
10. Plan of Internship Program:

a. A brief introduction of the branch (FBL) Where I did my Internship:
J.S Bank Limited branch is only one main branch in Chichawatni
J.S Bank Limited is located in the city most commercial area and competitive place
where others bank situated. It located in the city main area namely Farooq Road
Chichawatni
Now I like to tell about Farooq road which is the busy and business area of the
Chichawatni. Where others bank also situated like, United Bank Limited, Bank Alfalah
Limited, Habib Bank Limited, AL-Habib Bank Limited, Meezan Bank Limited, Bank of
Punjab, J.S Bank Limited so due to all these Bank in one main city area it creates highly
competitive environment among all of these. I observed during my internship in Faysakl
Bank Limited that many Government and also Semi-Government institutions like
training institutions, technical training institutions, and colleges have account in this
Bank.
An advantage of J.S Bank Limited location is that many city busy shops, departmental
stores are located in that place. So, due to this priority for J.S Bank Limited mostly
owners of these businesses have their customer relations with J.S Bank. In the said
branch there are 7 staff members. All employees of this bank have friendly relations and
good environment which facilitate customers in impressive way. Branch Manager Mr.
Rana Ather Khan has very impressive personality and good co-operative behavior.
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b. Starting and Ending dates of my Internship:

I start my internship programme 18 th April 2012 and lat date of my Internship
programme was 30th May 2012.
c. Names of Departments in which I got training:

During my internship in J.S Bank Limited I got training in following departments listed
below:
Deposit Department
Bills clearing Department
Remittance Department
Credit Department
Duration of Internship Program:
My internship duration was 6 weeks.
11. Training Program:
Detailed description of the tasks assigned by me:
During my internship program in J.S Bank Limited Chichawatni branch I worked in

deposit, remittance, bills clearing and credit department. And I successfully completed
all tasks that were assigned to me. There are 6 departments in the branch and I worked
as internee in that branch during my internship period. I performed the following
different tasks:
First of all I Filled deposit slips and cheques of many bank customers and I also filled
customer relationship formI provided details and guidance to new customers.I also got
verification from NADRA about newly come customers.I informed customers about
essential conditions which helpful them in smooth operating of their account.
I fill letter of Thanks in order to welcome new account holders sent by J.S Bank
limited.In manual work I assign account numbers of new J.S Bank customers
Now I would like to discuss many other tasks which I fulfilled during my internship in FBL.
Work Done by Me
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I did my internship in J.S Bank Branch Chichawatni. Some important information about
my branch which I observed is as follows:
Account opening:
In account opening department I spent two weeks of my internship program. During my
internship I opened new accounts of customers concerning current, savings, or term
deposits. I fill Customer Relationship Form (CRF) of J.S Bank limited.
When a customer comes to open his account, he has to fill a relationship contract with
the bank. As part of my internship I had to fill these forms and then use the appropriate
bank stamps to complete these forms. Also as part of the relationship form, I also had to
do a Verisys, a verification system started by NADRA on the CNIC of the new account
opener. A Verisys tells, if more information pertaining to the customer is needed to
open the account or not.
a. Individual accounts requirement (documents):
Copy of CNIC
For business individuals copy of NTN certificates
Proof of employment
Passport size photograph
Left and right thumb impressions (for illiterate person)
b. Partnership (documents required):
Copy of partnership deed
CNIN copy of partners
Copy of NTN (where available)
Attested copy of registration certificates with registrar of firms
Any other (if required)
c. Public / Private Limited Company:
Copy of certificate of incorporation
Memorandum and articles of association

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List of directors on prescribed format
Copies of CNIC of all directors
Copy of board resolution (if required)
Certificate of commencement of business
d. Club / Society Association:

J.S Bank Limited also provides services for account opening of clubs/ society/ or
associates. Documents which required for account opening are provided below:
Certificate of registration
Certified copy of resolution of the governing body for opening the account
Authorized person(s) to operate the account
Copy of CNIC of authorized persons
Undertaking signed by all authorized persons mentioning intimation to the bank in
case of change of authorized persons operating the account

Credit department (FBL):
During my internship program in J.S Bank limited I also come to know about credit
department. J.S Bank provides financing assistance to different sectors. It provides
loans to following sectors:
Agriculture sector
Industrial financing
Consumer lending
J.S khushaal Kisan Scheme:

Agricultural loan provides to farmers. Loan amount can be used for crops or used for
repair of machinery used in crops for agricultural purposes. E.g. Loan for purchase of
seeds, Repair of tractor use in crops, betterment of irrigation, repair of tube well etc. J.S
Bank provides special products for agricultural sectors.
Production loans to meet cost of seeds, pesticides, storage, labor, and for others
working capital requirements.
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Development purposes it provides for machinery used in farms, irrigations betterment,

meet cost of Godowns, and for land improvement.
Documents required:
Two recent passport size photos along with application form, copy of
computerized CNIC
Guarantors (where applicable)
Updated Zari Pass book or title documents of other properties offered as security
along with valuation certificate and other relevant documents on case to case basis
Consumer financing (Personal finance):
J.S Bank limited also provides lending for freedom from worries. Lower charges levy on
borrower by bank. Bank provides easy and affordable schedule for repayment of loan.
Documents required:
Computerized identity card of applicant
Source of income
Proof of employment (In case of salaried person)
Email address (if any)
SME Financing (Small & Medium Enterprise Financing):

SME unit of the bank geared towards catering to banking requirements of small to
medium businesses in timely and cost effective manner. J.S Bank limited equipped to
increase customers strength by providing bakers and financial advisor and services.
Cheque Book issuance:
Bank issued cheque book only account holders of the bank. Cheque book issued by
bank to its customers only when two conditions are fulfilled which are:
At the times of opening new account
When existing account holder have no cheque in his cheque book to issue for payment
Many steps for issuance of cheque book are provided below:
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When customer need for new cheque book it only issued when he filled
Requisition form provided by bank
Cheque book contains leaves which are 25, 50, or 100 as required by customer in CRM
fill form.
Minimum charges for issuing of cheque book which I observed during my
internship
program in J.S Bank are Rs.125/.

In the last cheque book issued only when branch manager gives his assent in this
regard after verifying all information provided by customer
I like to explain briefly about post dated cheque and out dated cheque which presented
in J.S Bank limited during my internship.
Post dated cheque:
These are cheques on which upcoming future date is written. And its payment is only
made on that coming date before due that it cannot en-cash from bank.
Example:
If Akram present cheque in bank on 1 st March 2012, but date mentioned on cheque is
15th April. It is post dated cheque.
Outdated cheque:
Outdated cheques are those on which past date is written. It can be clear from bank up
to 6 months. Date mention on the cheque earlier than on which date it presented in the
bank for payment is called outdated cheque.
Example:
J.S bought some furniture from S.B Furniture on 1 st April 2012. He gives them cheque
for payment purposes. Date mentioned on cheque was 15 th March 2012. So this is
outdated on which date written is earlier than when it presented by S.B Furniture in the
bank for payment.
Clearing department:
I worked in the clearing department of the J.S Bank limited for 8 days. Main branch
receives the cheques from all of its branches and makes the lots of these cheques
again. All banks representative together on National Bank of Pakistan. Where they
present drawn cheques on different branches and receive their own cheques from them.
Record is maintained in National bank of Pakistan. Then main branch sends these
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cheques to their relevant branches where the validity of these cheques is verified and
the accounts of the relevant clients are affected.
I worked under kind supervision of Mr. Asif. He helped me about clearing work. And I
come to know about different types of clearing:
Outward clearing
Inward clearing
Online clearing
Outward clearing:
In outward clearing cheques of other banks are presented in J.S Bank by its customer
for clearing.
Inward clearing:
In Inward clearing cheques of our bank (FBL) is presented in other
bank and it is received by the J.S Bank Limited through NIFT (National institutional
facilitation technologies) for clearing.
Online clearing:
In online clearing cheques presented in any branch of the bank
for clearing purposes made through online. I did not have the opportunity for details
because online departments work is a sensitive area and electronic based.
Some Miscellaneous work:
In addition to these work I did some various tasks which
assign me during my internship period. I got some knowledge about software of the
bank named Symbol. I also learned how to post utility bills in the computer. I knew about
the current balance of account holder when inquired. I knew about Stamps which used
in documentation work. I also filled Demand draft and also got knowledge about online
work.
I also opened new accounts of the customers. After opening the newly accounts I took
customer signature on Specimen signature card. I also got knowledge about how to
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opened account of Illiterate person accompanying two recent passport size photos and
also signs of left used instead of signature
I also filled requisition form for customer when he request for issuance of new cheque
book and also filled Customer Relation Form when he want service of ATM Card.
I also filled form when account holder needs Alert SMS service provided by J.S Bank
Limited.I knew about that account holders can transact online through J.S Bank Limited
without any charges.
BALANCE SHEET 31st December, 2014

ASSETS
2013
2012
45,775
44,381
Lending to financial institutions
12,461
10,721
Investments- Gross
364,966
269,351
Advances Gross
285,376
288,889
Operating Fixed assets
22,084
19,871
Other assets
23,496
20,245
Total assets Gross
754,158
653,458
(18,375)
(17,805)
(1,587)
(1,948)
734,196
633,705
Cash and balances with treasury and other

banks
Provisions against non-performing Loans,

advances
Provisions against diminution in value of
investments
Total assets net of provision
LIABILITIES
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Customer deposits & other accounts
608,412
514,707
Inter bank borrowings
32,952
38,916
Bills payable
4,879
6,203
Other liabilities
17,513
16,351
Sub-ordinated loans
4,242
5,490
Total Liabilities
667,998
581,667
NET ASSETS / LIABILITIES
66,198
52,038
Share capital
10,410
9,463
Reserves
12,438
10,899
Un appropriated profit
30,855
23,688
Equity Tier I
53,703
44,050
Surplus on revaluation of assets
12,495
7,988
Total Equity
66,198
52,038
54,222
49,503
(32,552)
(31,142)
21,670
18,361
3,711
3,169
Capital gain & Dividend income
4,645
10,353
Other income
1,247
272
Non-interest income
9,603
13,794
Gross income
31,273
32,155
(15,804)
(14,853)
15,469
17,302
(80)
(104)
Share premium
PROFITABILITY
Markup / Rerurn / Interest earned
Markup / Rerurn / Interest expensed
Net Markup / Interest income
Fee, Commission, Brokerage and Exchange
income
Operating expenses
Profit before provisions
Donations
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Provisions- (charge) / reversal
(628)
(1,362)
Profit before taxation
14,761
15,836
(118)
(4,195)
14,643
11,641
Taxation
Profit after taxation
12. Ratio analysis:

a). Liquidity ratios:
Liquidity ratios help in assessing the firms ability to meet its short
term obligations. Current assets include following listed below:
(1). Marketable securities
(2). Cash
(3). Accounts receivable
(4). Prepaid expenses
(5). Inventories
Current liabilities which considers in calculation are listed below:
(1). Accounts payable
(2). Accrued expenses
(3). Short term notes payable
(4). Taxes payable
(5). Current portion of LTD
For year 2011 (Rupees in 000):

Current ratio = Current Assets / Current Liabilities
= 132,610,662 / 117,340,778
Current Assets = Cash and balances with treasury banks + Balances with other banks
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+ lending to financial institutions + Investment And Advances

= 8927524 + 876780 + 2861401 + 30186168 + 89758789
= 132,610,662
Current liabilities = Bills payable + Borrowings from financial institutions
+ Deposits and other accounts
= 1536517 + 13027468 + 102776793
= 117,340,778
=171,831,162 / 160,106,405
= 1.07:1
+ lending to financial institutions + investments + advances
= 8427202 + 508795 + 15017826 + 56531338 + 91346001
= 171,831,162
Current liabilities = Bills payable + Borrowings + Deposits and other accounts
= 1465451 + 34985766 + 123655188
= 160,106,405
= 243,282,151 / 233,169,967
= 1.04:1
+ lending to financial institutions + investments + advances
= 17428924 + 5727909 + - + 86418549 + 133706769
= 243,282,151
Current liabilities = Bills payable + Borrowings + Deposits and other accounts
= 3218859 + 34635904 + 195315204
= 233,169,967
(Rupees in 000)
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Current ratio
Current Assets / Current Liabilities
Year 2011
Year 2012
132,610,662
/
171,831,162
Year 2013
243,282,151
117,340,778
160,106,405
233,169,967
= 1.13
= 1.07
= 1.04
Interpretation:
Standard for current ratio is 2:1 during three years ratio not meet standard requirement
and gives unsatisfactory result.
Acid Test Ratio:
For year 2011: Liquid assets = current assets inventory prepayments
Acid Test Ratio = Liquid or Quick assets /current liabilities
= 12,665,705 / 117,340,778
= 0.10:1
Liquid assets = Current assets investments advances
= 132,610,662 - 30,186,168 - 89,758,789
= 12,665,705
For year 2012:
= 23,953,823 / 160,106,405
= 0.14:1
= 171,831,162 - 56,531,338 - 91,346,001
= 23,953,823
For year 2013:
= 23,156,833 / 233,169,967
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= 0.09:1
= 243,282,151 86,418,549 133,706,769
=23,156,833
Acid Test Ratio recalculate
Liquid or Quick assets /Current liabilities
Year 2011
12,665,705
Year 2012
23,953,823
Year 2013
23,156,833
117,340,778
160,106,405
233,169,967
= 0.10
= 0.14
= 0.09
Interpretation:
1:1 is standard ratio for Acid Test Ratio. And during all three years 2011, 2012, 2013
Acid Test Ratio is unsatisfactory and below from standard ratio 1:1.
Working capital:
For year 2011:
Working Capital = Current Assets Current Liabilities recalculate
= 132,610,662 - 117,340,778
= 15,269,884
For year 2012:
Working Capital = Current Assets Current Liabilities
= 171,831,162 - 160,106,405
= 11,724,757
For year 2013:
Working Capital = Current Assets Current Liabilities
= 243,282,151 - 233,169,967
= 10,112,184
Working Capital
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Current Assets Current Liabilities

Year 2011
132,610,662
117,340,778
Year 2012
171,831,162
160,106,405
= 11,724,757
= 15,269,884
Year 2013
243,282,151
233,169,967
= 10,112,184
Interpretation:
Working capital provides measure of company efficiency and its short term financial
condition. During years 2011, 2012, and 2013 J.S Bank working capital provides
positive working capital which means that it able to meet its short term obligations.
b) Leverage Ratios:
Leverage means operating a business with borrowed money. It shows the extent of long
term debt financing. It includes interest payments, equity and debt.
Times interest Earned
For year 2011:
Times Interest Earned ratio = EBIT / Interest charges
= -3,152,840 / 8,454,755
= -0.37
EBIT for year 2011
= (3,152,840)
For year 2012:

= -3,689,489 / 11,967,885
= -0.30
EBIT year 2012:
Earning before interest and tax
= (3,689,489)
For year 2013:

= -4,964,150 / 13,919,256
= -0.35
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EBIT year 2011:

Earning before interest and tax
= (4,964,150)
EBIT / Interest charges
Earnings/Profit before interest and Tax = Profit

before tax + Interest expense:
Interest charges + Markup/Interest expense
Year 2011
-3,152,840
Year 2012
-3,689,489
Year 2013
-4,964,150
8,454,755
11,967,885
13,919,256
= -0.37v
= -0.30
= -0.35
Interpretation:
During three year EBIT ratio shows negative figure -0.37, -0.30, and -0.35. J.S Bank
has paid interest charges due to including of debt in its capital structure.
Debt Ratio:
Debt ratio measures percentage of creditor funds. Low ratio indicates low risk for Bank
but high leverage ratio indicates risk.
Year 2011:
Debt ratio = Total debt / Total assets
= 127,469,378 / 138,241,486
= 0.92
Total debt = Current liabilities + Long- term debt
= 117,340,778 + 10,128,600
= 127,469,378
Total assets = Current assets + Fixed assets
= 132,610,662 + 5,630,824
= 138,241,486
Year 2012:
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= 168,082,674 / 180,865,413
= 0.92
= 160,106,405 + 7,976,269
= 168,082,674
= 171,831,162 + 9,034,251
= 180,865,413
Year 2013:
= 250,803,153 / 267,320,923
= 0.93
= 233,169,967 + 17,633,186
= 250,803,153
= 243,282,151 + 24,038,772
= 267,320,923
Total debt / Total assets
Year 2011
127,469,378
Year 2012
168,082,674
Year 2013
250,803,153
138,241,486
180,865,413
267,320,923
= 0.92
= 0.92
= 0.93
Interpretation:
In total debt ratio it comes to know that J.S Bank limited debt increased little in year
2013 from 0.92 to 0.93.
Debt / Equity Ratio:
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BZU Multan
This ratio provides measure of the capital structure of the Bank. Funds comes from two
ways namely (01) Equity (02) Debt. High debt or excess of it over equity shows less
equity funding and more creditors funding and carry regular interest payments on debt.
Year 2011:
Debt / Equity Ratio = Total Debt / Total Equity
=127, 46939 / 10,135,988
= 1.25
Debt = Long term debt + Current liabilities
= 10,128,600+ 117, 340,778
= 127, 46939
Total Equity = Share capital + Reserves + Unappropriated profit
= 5,296,445 + 3,790,023 + 1, 049, 520
= 10,135,988
Year 2012:
= 168, 082, 68 / 11,336,146
= 1.48

= 7,976,269 + 160,106,405
= 168, 082, 68
Total Equity = Share capital + Reserves + Unappropriated profit
= 6,090,911 + 4,030,056 + 1,215,179
= 11,336,146
Year 2013:
= 250, 80317 / 16,614,625
= 1.51
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= 17,633,186 + 233, 169, 967

= 250, 80317
Total Equity = Share capital + Reserves + Unappropriated profit +proposed shares on
amalgamation
= 7,309,094 + 7,354,688 + 1,950,843
= 16,614,625
Debt / Equity Ratio
Total Debt / Total Equity
Year 2011
Interpretation:
Year 2012
Year 2013
During three years Debt / Equity ratio shows unfavorable. Because its total debts are exceed total
equity and increased in year 2012 and 2013.
Debt to Tangible Net worth Ratio:
Net worth = total assets total liabilities
(When we subtract total assets from total liabilities then the result will be
shareholders fund)
Tangible net worth =Net worth minus intangible assets
For year 2011:
Debt to Tangible Net worth Ratio = Total debt / Tangible net worth
= 127, 46939 / 10,772,108
= 1.18
Total debt = Long term debt + Current liabilities
= 10,128,600+ 117, 340,778
= 127, 46939
Tangible net worth = Total Assets - Total Liabilities
= 138,241,486 - 127,469,378
= 10,772,108
For year 2012:
= 168, 082, 68 / 12,782,739
= 1.31
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= 7,976,269 + 160,106,405
= 168, 082, 68
= 180,865,413 - 168,082,674
= 12,782,739
For year 2013:
= 250, 80317 / 16,517,770
= 1.51
= 17,633,186 + 233, 169, 967
= 250, 80317
= 267,320,923 - 250,803,153
= 16,517,770
Year 2011
127, 46939
Year 2012
168, 082, 68 /
Year 2013
250, 80317
10,772,108
12,782,739
16,517,770
= 1.18
= 1.31
= 1.51
Interpretation:
Debt to Tangible Net worth Ratio during three years 2011, 2012, 2013 is increased form
previous one. And year 2013 it reach maximum point 1.51.
Total Capitalization Ratio:
Total Capitalization ratio measure debt part of capital structure (Long-term debt and
equity). That supports its going operations and growth.
Year 2011:
Total Capitalization Ratio = Long-term debt / long-term debt + shareholders'
equity
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= 10,128,600 / 20,264,587
= 0.49
Long term debt = Sub-ordinated loans + Liabilities against assets subject to finance
lease
+ Deferred tax liabilities (net) + other liabilities
= 999,600 + 4,103 + 2,483,355 + 6,641,542
= 10,128,600
Long-term debt + shareholders' equity = Long term debt + Share capital + Reserves
+ Unappropriated profit
= 10,128,600 + 5,296,445 + 3,790,023
+ 1,049,519
= 20,264,587
Year 2012:
equity
= 7,976,269 / 19,312,415
= 0.41
lease
= 999,200 +.NIL...+.NIL...+ 6,977,069
= 7,976,269
= 7,976,269 + 6,090,911 + 4,030,056 +
1,215,179
= 19,312,415
Year 2013:
equity
= 17,633,186 / 34,247,811
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BZU Multan
= 0.51
lease
= 4,595,395 + NIL + NIL + 13,037,791
= 17,633,186
= 17,633,186 + 7,309,094 + 7,354,688
+ 1,950,843
= 34,247,811
Long-term debt / long-term debt + shareholders' equity
Year 2011
Year 2012
Year 2013
10,128,600
/
7,976,269
/
17,633,186
20,264,587
19,312,415
34,247,811
= 0.49
= 0.41
= 0.51
Interpretation:
After calculating three years Total Capitalization ratio it comes to know that FBL uses
little long term debt in its total capital structure.
c) Profitability Ratios:
This ratio provides measurability of firm earning. And its long term profitability necessary
in order to survive for long term in competitive market. These ratios measures profit
figure with firm size, its employed assets, and sales level. It gives snapshot of firm
financial performance.
Net Profit Margin:
It measures actual net profit after the deduction of all cost incurred.
It gives percentage of turnover which is presented by the net profit. Net profit means net
36
BZU Multan
profit after interest and tax. Higher ratio favorable and lower indicates poor earning of
firm.
For year 2011:

Net Profit margin = Net Profit / Sales x 100
= 1,114,952 / 13, 404, 13
= 8%
Net profit for year 2011 = 1,114,952
Bank is service provider so its (Sales) Interest earned during year is considered =
13,404,132
For year 2012:
= 1,200,159 / 16,957,875
= 7%
Interest earned (Sales) = 16,957,875
For year 2013:
= 1,190,329 / 19,710,460
= 6%
Interest earned (Sales) = 19,710,460
Year 2011
1,114,952 / 13,
Year 2012
1,200,159
404, 13
16,957,875
19,710,460
= 8%
= 7%
= 6%
Year 2013
1,190,329
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Interpretation:
Net profit margin of FBL continuously downward form 8% to 7% and then 6% and this is
not a good sign for Bank. Because its net profit margin reduced in these years.
Return on Assets:
Return on assets measures firm profitability relative to its assets. Higher percentage
return on assets shows efficient management in using its assets.
For the year ended December 31, 2011:
Return on Assets = Profit after taxation / Average Total Assets *100
= 1,114,952 / 69,120,743 *100
= 1.61%
Profit after taxation = 1,114,952
Average Total Assets = Total assets / 2
= 138,241,486 / 2
= 69,120,743
For year 2012:
= 1,200,159 / 90,432,707 *100
= 1.32%
= 180,865,413 / 2
= 90,432,707
For year 2013:
= 1,190,329 / 133,660,461.5 *100
= 0.89%
= 267,320,923 / 2
= 133,660,461.5
Year 2011
Year 2012
Year 20132
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BZU Multan
1,114,952
1,200,159 / 90,432,707
1,190,329
69,120,743 *100
*100
133,660,461.5 *100
= 1.61%
= 1.32%
= 0.89%
Interpretation:
During year 2011 return on assets gives maximum value than other two years. And after
year 2011 return on assets tending toward decline as in year 2012 it is 1.32% and then
in year 2013 0.89%. So in year 2012 and 2013 investment in fixed assets is not worthy.
DuPont Return on Assets: recalculate
ROA Du Pont = [(Net income / Sales) x (Sales / Total Assets)] *100
OR
ROA Du Pont = net profit margin * total asset turnover
Year 2011:
DuPont Return on Assets =
Profit after taxation/Total Assets * 100
= 1,114,952 / 138,241,486 *100

= 0.80%
= 132,610,662 + 5,630,824
= 138,241,486
Year 2012:
= 1,200,159 / 180,865,413 *100

= 0.67%
39
BZU Multan

= 171,831,162 + 9,034,251
= 180,865,413
Year 2013:
= 1,190,329 / 267,320,923 *100

= 0.45%
= 243,282,151 + 24,038,772
= 267,320,923
DuPont Return on Assets
Year 2011
1,114,952
Year 2012
1,200,159
Year 2013
1,190,329
138,241,486 *100
180,865,413 *100
267,320,923 *100
= 0.80%
= 0.67%
= 0.45%
Interpretation:
All three years DuPont return on assets shows unfavorable movement. These are
unsatisfied and bad sign for Bank. Its return in 2011 is 0.80% but in coming two years it
goes down 0.67% and 0.45%.
Operating Income Margin:
Operating income margin (Operating earning or operating profit) is calculated after
deducting all selling and administration expenses from Gross profit.
For year 2011:
40
BZU Multan
Operating Income Margin = Operating Income / Net Sales*100

= 1,691,534 / 13,404,132 *100
= 12.7%
* Selling expenses is not available so only administrative expenses are subtracted from
Gross profit.
Operating income = Gross profit Administrative expenses
= 4,949,377 - 3,257,843
= 1,691,534
Interest earned (net sales)
= 13,404,132
For year 2012:

Operating Income Margin = Operating Income / Net Sales*100
= 705,904 / 16,957,875 *100
= 4.16%
= 4,989,990 - 4,284,086
= 705,904
= 16,957,875
For year 2013:

Operating Inc
Ome Margin = Operating Income / Net Sales*100
= -852,868 / 19,710,460 *100
= -4.32 %
= 5,791,204 - 6,644,072
= -852,868
= 19,710,460
Operating Income Margin

Operating Income / Net Sales*100
Year 2011
Year 2012
Year 2013
41
BZU Multan
1,691,534
705,904 / 16,957,875
-852,868 / 19,710,460
13,404,132 *100
*100
*100
= 12.7%
= 4.16%
= -4.32 %
Interpretation:
Operating income margin is decreased in three years 2011, 2012, 2013. Maximum
return which get in year 2011 12.7% is satisfactory for the Bank. But it bad sign for Bank
when coming two years Operating income margin is going to decline.
Return on Operating Assets:
Operating assets includes Cash and balances with treasury banks, Balances with other
banks & Operating fixed assets.
Operating assets can be calculated as follow:
Operating Assets for Banks = Total assets (Investments + deferred assets +
other assets)
Year 2011:
Return on Operating Assets = Profit after Taxation/ Operating assets*100
= 1,114,952 / 12,451,282 *100
= 8.96%
Operating assets = Cash and balances with treasury banks + Balances with other banks
+ Operating fixed assets
= 8,927,524 + 876,780 + 2,646,978
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BZU Multan
= 12,451,282
Year 2012:
= 1,200,159 / 11,723,614 *100
= 10.23%
+ Operating fixed assets
= 8,427,202 + 508,795 + 2,787,617
= 11,723,614
Year 2013:
= 1,190,329 / 23,156,833 *100
= 5.14%
= 17,428,924 + 5,727,909
= 23,156,833
Year 2011
1,114,952 / 12,451,282
Year 2012
1,200,159
*100
11,723,614 *100
23,156,833 *100
= 8.96%
= 10.23%
= 5.14%
Year 2013
1,190,329
Interpretation:
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BZU Multan
In year 2011 return on operating assets was 8.96%. And after that in year 2012 it moves
favorable 10.23%. But in year 2013 it declines downward than previous two years and
show 5.14% return on operating assets.
Return on Total Equity:
This is important measures the net profit earned relative to utilizing each dollar of equity.
Two items appear for this calculation first Net profit and Total equity. It measures that
how much the shareholders earned for their investment in the firm or company. Higher
ratio indicated efficient management of shareholders fund and grater return on their
investment.
For year 2011:
Return on Total Equity = Profit after taxation / Total Equity*100
= 1,114,952 / 10,135,987 *100
= 11%
Profit after taxation (Net profit) = 1,114,952
Total equity = Share capital +Reserves +Unappropriated profit
= 5,296,445 + 3,790,023 + 1,049,519
= 10,135,987
For year 2012:
Return on Tot
Equity = Profit after taxation / Total Equity*100
= 1,200,159 / 11,336,146 *100
= 10.6%
= 6,090,911 + 4,030,056 + 1,215,179
= 11,336,146
For year 2013:
Return on Total Equity = Profit after taxation / Total Equity*100
= 1,190,329 / 16,614,625 *100
= 7.17%
44
BZU Multan
= 7,309,094 + 7,354,688 + 1,950,843

= 16,614,625
Return on Total Equity
Profit after taxation / Total Equity*100
Year 2011
1,114,952
/
10,135,987 *100
= 11%
Year 2012
1,200,159
11,336,146 *100
=10.6%
Year 2013
1,190,329
16,614,625 *100
= 7.17%
Interpretation:
It clearly from above calculations that return on total equity is decreasing downward. In
year 2011 it is 11% which is favorable. But after that in year 2012 it reach 10.6% and in
next year 2013 it decline more 7.17%. And this steadily downward return on total equity
is not good sign.
Gross Profit Margin:
Gross profit margin ratio measures financial health of company. It is calculated by
dividing Gross profit over Net sales and multiplying answer with 100. It provides main
source for future expenses and savings. High percentage return is satisfied result for
survival and low gross profit margin unfavorable for company (Bank).
Year 2011:
Gross Profit Margin =Gross Profit / Net sale *100
= 4,949,377 / 13,404,132 *100
= 36.92%
Gross profit:
Mark-up / return / interest earned
= 13,404,132
(Less) Mark-up / return / interest expensed = 8,454,755

Interest income (Gross profit)
= 4,949,377
Net sales (Interest earned) during year 2011 = 13,404,132

Year 2012:
= 4,989,990 / 16,957,875 *100
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BZU Multan
= 29.42%
Gross profit:
= 16,957,875

= 4,989,990

Year 2013:
= 5,791,204 / 19,710,460 *100
= 29.38%
Gross profit:
= 19,710,460

= 5,791,204

Gross Profit Margin
Gross Profit / Net sale *100
Year 2011
4,949,377 / 13,404,132
*100
=36.92%
Year 2012
4,989,990
16,957,875 *100
=29.42%
Year 2013
5,791,204
19,710,460 *100
=29.38%
Interpretation:
In year 2011 Gross profit margin is at maximum point 36.92%. Which is a good sign and
favorable for Bank. But in coming two years it decreases.
d) Activity Ratios:
Activity ratios measure firm's ability to convert different accounts within their balance
sheets into cash. This ratio measures efficiency of assets management.
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BZU Multan
Total Assets Turnover:

Total assets turnover ratio is calculating by dividing sales by assets. The higher the
turnover the favorable it is. This measures efficiency in using assets for generating
sales.
Year 2011:
Total Assets Turnover = Total Sales / Total Assets
= 13,404,132 /138,241,486
= 0.09
Total sales = 13,404,132
Total Assets = Current assets + Fixed assets
= 132,610,662 + 5,630,824
= 138,241,486
Year 2012:
= 16,957,875 / 180,865,413
= 0.09
= 171,831,162 + 9,034,251
= 180,865,413
Year 2013:
= 19,710,460 / 267,320,923
= 0.07
= 243,282,151 + 24,038,772
= 267,320,923
Year 2011
13,404,132
138,241,486
= 0.09
Year 2012
16,957,875
180,865,413
Year 2013
19,710,460
267,320,923
= 0.07
= 0.09
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BZU Multan
Interpretation:
In year 2013 ratio is unsatisfactory. In last two years 2011, and year 2012 figure is 0.09.
And in year 2013 it decrease.
Fixed Assets Turnover:
Amount of fixed assets is given in the balance sheet as fixed assets or operation
Fixed Assets.
For year 2011:
Fixed Assets Turnover = Total sales/Fixed assets
=13,404,132 / 5,630,824
= 2.39
Fixed assets = 5,630,824
For year 2012:
= 16,957,875 / 9,034,251
= 1.88
For year 2013:
= 19,710,460 / 24,038,772
= 0.81
Fixed Assets Turnover
Total sales/Fixed assets
Year 2011
13,404,132
Year 2012
16,957,875
Year 2013
19,710,460
5,630,824
9,034,251
24,038,772
= 2.39
= 1.88
= 0.81
Interpretation:
Fixed Assets turnover ratio is satisfactory in year 2011 figure 2.39. Year 2012, and year
2013 ratio is un-satisfied.
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BZU Multan
e) Market Ratios:
Market ratios are commonly used by the investors to assess the performance of a
business as an investment. It also measures investor response to owning a company
stock and also the cost of issuing.
Dividend per share:
Year 2011:
Dividend per share = Total amount of Dividend/ Number of outstanding shares
= 870,266 / 529,644
= 1.64
Year 2012:
= 0 / 609,091 =0
In year 2012 no dividend was paid.
Year 2013:
= 645000 / 7,309,094
= 0.08
Dividend per share
Total amount of Dividend/ Number of outstanding shares
Year 2011
870,266 / 529,644
Year 2012
0 / 609,091
Year 2013
645000 / 7,309,094
= 1.64
=0
= 0.08
Interpretation:
In year 2011 DPS ratio gives favorable figure Rs. 1.64.
Earning per Share:
Year 2011:
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Earning Per Share = Profit after Taxation/ Number of Shares

= 1,114,952 / 5,296,445
= 0.21
Number of Shares = 5,296,445
Year 2012:
= 1,200,159 / 6,090,911
= 0.19
Year 2013:
= 1,190,329 / 7,309,094
= 0.17
Earning Per Share
Profit after Taxation/ Number of Shares
Year 2012
Year 2013
1,114,952 / 5,296,445
=0.21
1,200,159 / 6,090,911
=0.191,190,329 / 7,309,094
=0.17
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BZU Multan
Interpretation:
Earning per share ratio measures company profitability. And also helpful in determining
share price. In three years measure it shows unsatisfactory figures.
Price/Earning Ratio:
For year 2011:
Price / Earning Ratio = Stock Price per Share/ Earning Per Share
= 11.51 / 0.21
= 54.9
For year 2012:
=17.53 / 0.19
= 92.2
For year 2013:
= 15.59 / 0.17
= 91.8
Price / Earning Ratio
Stock Price per Share/ Earning Per Share
Year 2011
Year 2012
11.51 / 0.21
17.53 / 0.19
=54.9
=92.2
Year 2013
15.59 / 0.17
= 91.8
Interpretation:
Price / Earning ratio is satisfied during three years. And in year 2011 ratio it is slightly
decline than ratio of year 2012.
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BZU Multan
Review of Descriptive information J.S Bank limited:

Descriptive information is gained form J.S Bank limited annual report, Balance sheet,
Profit & Loss Account, Cash flow statement. J.S Bank limited financial statements are
prepared according to accounting standards (International accounting standard adopted
in Pakistan). Also these statements are prepared according to instructions of Banking
Companies Ordinance 1962, and Directives issued by the State Bank of Pakistan.
In Balance sheet Dividend approval and appropriation to reserve are recoded as liability
in the year of their approval. The bank is required to transfer twenty percent of its profit
each year to the statutory reserve fund until the amount equal to the Paid up capital of
the J.S Bank Limited.
I want to describe it that Gross profit in year 2013 decline from previous year which is
29.38%. Net profit also decrease which is 6%. Dividend per share is 0.08 which is more
than year 2012.
In year 2013 Working capital decrease from previous year which is 10,112,184. And
Tangible net worth is increased than previous year which is 16,517,770. Balance sheet
on December 31, 2013 shows share capital Rs. 7,309,094 which is favorable than
previous two years 20012, 2014.
J.S Bank paid up capital in year 2013 most satisfied than two previous years. This helps
him in maintaining its liquidity. Share capital help bank in mobilizing is deposits, provide
attractive return deposits facilities, and update its technology. All these endeavors affect
its profitability.
Audit is conducted in accordance with the auditing standards as applicable in Pakistan.
With the help of these standards audit perform to obtain assurance about whether the
financial are free from any error. J.S Bank Limited Balance sheet, Profit and Loss
Account, Statement of comprehensive income, cash flow statement, statement of
changes in equity are audited for their reasonable assurance about free of any material
misstatement.
In their opinion, the financial statements present fairly the financial position of J.S Bank
Limited, and the results of their operations, their comprehensive loss, and their cash
flows, changes in equity comply with the approved accounting standards as applicable
in Pakistan.
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BZU Multan
(13). Future Prospects of FBL

J.S Bank launched its branches on domestic place, in order to provide basic consumer
banking services. It boosts its investment in HRM in order to manage new opportunities
which generate income. In order to get consumer market share it introduced finance
products for its consumers. In order to get new customers attention
J.S Bank Limited plan to introduce new short term product in order to acquire deposits
e.g. FBL plan to provide profit rate of 15% to 16%, well above the other banks offer rate.
FBL also devise policies for introducing of home finance for home appliances or for
construction of home. And also Toba branch plan to introduce car finance facility to its
customers.
Weakness
Perfection is only the claim of Allah Almighty. No other being living or dead can say this for
itself. Similarly, J.S Bank also has some shortcomings that need to be mentioned:
Training capabilities are not up to the requirements
The Branch has a good staff combination on the basis of experience, but their training
capabilities are not up to the requirements of the fast changing banking environment.
Technical training of the staff is negligible
The technical training of the staff is negligible e.g. in case of the absence of computer there is
no alternate trained personal who can record the daily transactions.
Lower staff is non cooperative
The lower staff is non cooperative as compared the lower staff of other branches.
Manager Lacks in managerial Skills
The control of manager is not effective.
Discretionary powers of manger are low
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BZU Multan
The discretionary powers of manger are very low to offer more incentives and value added
services to its customers.
Lack of commitment and professionalism
There is a lack of commitment and professionalism on part of the employees. The staff is
always in a hurry to leave the bank as soon as possible. They were also observed to starting
their operations comparatively late.
Culture is not cooperative
The organizational culture is not cooperative. Nepotism and Politics was observed on part of
the manger as well as the top management towards some staff members.
Old Methods of doing Work
In spite of the presence of technology many jobs are done manually such as the letters, drafts
for fax messages and other calculations, which could be easily, done in MS Word and Ms
Excel.
Job description was not clear
The job distribution is not up to the mark. I observed during my internship that some of the
employees were burdened with over work. So I think that the work should be distributed
according to their post and capabilities. Everyone should perform their duties with honesty and
full with devotion.
Machines are not working
This branch is provided with 1 fax machine which is not working currently, the branch mobile
number was not working as well.
Weak Marketing Department

Banks marketing department is not very strong. Advertising done by the bank is less than the
requirement.
Not Work Specialization
I observed during my internship that person is doing work in that field which does not relate with
his specialization field.
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BZU Multan
Strengths
J.S Bank is considered to be a very sound bank in the financial circles.
Experienced and least experienced staff
The Branch has the most experienced and the least experienced staff, which is a good
combination of experienced heads and enthusiasm of youth.
LDA Accounts
It holds the LDA Accounts, where the payments are made through checks. This process
provides an opportunity to the Branch to have more of the LDA customers as the Bank
customers.
Serve customer in better way
The branch is linked through an online network of 834 BRANCHES, thus enabling them to
serve customer in better way.
Excellent Customer Service
The officers of FBL are considered as one of the most able professionals in the banking world.
However, they have added some local flavor in accordance with their targeted segmented.
Especially I noted in "Housing Scheme Branch" that they interact with their clients as they
interact with their personal friends and discuss about their problems as their own.
Goodwill & Trust

As a result of the excellent and personalized services of the officers, the clients
perception for J.S BANK is very high. They trust and feel themselves to be secure while
banking with J.S Bank.
Geographical Presence
FBL has opened all its branches at commercial areas as well as residential areas so that the
customers or clients could not face problems. All the branches are made after research and
according to their targeted audience.
Wide Branch Network
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BZU Multan
FBL objective is to expand its branch network to meet clients needs. The bank has increased
more than 800 branches in all over the Pakistan. The expansion program is strategically
important to increase customer base and to approach different customer segments.
Strong Financial Position
The financials of FBL is increasing every year I wrote it in the strengths because in last year
when all the banks were in loss at that time FBL was only whose profit was 10.2 billion. So
people rely on its strong financial position.
Fully Online Branch Network
In all over the Pakistan all the branches of FBL are facilitating their client's online facility. There
is no bank whose all branches are performing this job.
Highest Number of ATM Terminals
FBL is only bank in Pakistan which has highest numbers of ATM terminals. The ATM machines
are 600+ in Pakistan.
Latest Banking Software (T24)

FBL is introducing a full version of new software that is known T24. Some other banks
are using T24 but they are not using the full version of T24. The benefit of this it
centralized the work, work minimization of work and less paper work
Opportunities
J.S Bank has grown up its business with a very high pace and it has got tremendous popularity.
There are many opportunities for the bank and by availing that it can stand amongst the top
foreign banks.
ABL as channel for remittance
A considerable portion of the labor force of the area is serving overseas. Their families can be
encouraged to use ABL as channel for remittances.
Location of the ABL
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BZU Multan
The location of the ABL, Housing scheme branch chungi no 5 itself provides an opportunity to
ABL to get more deposits.
Long working hours
There are many companies which are not satisfied with its current bank, so J.S Bank branch
with its superior service quality and long working hours can capture those customers
Information Technology
All the opportunities of the 21st century are to be availed in the information technology.
Therefore J.S Bank should emphasize much on IT, especially the E Banking. Bank can design a
universal account like other foreign banks, to enhance online facilities.
Extension of Branch Network
J.S Bank growing business requires an extensive branch network. There are great opportunities
for J.S Bank for the expansion of its business.
Growth in Deposits
J.S Bank should provide new services or some increased interest rate with respect to other
banks to increase the growth in deposit.
Threats
Dissatisfies customers
One of the biggest to the ABL, Housing scheme branch is the increasing rate of dissatisfies
customers. Most of these customers were observed to be dissatisfied with the delays in their
servicing.
Decreasing morale of employees
The greatest threats to the performance of ABL Housing scheme branch are the decreasing
morale of employees. They feel that they are not provided with bonuses. They are not given
proper attention to have a say in the annual meetings. The proxy forms are signed on their
behalf without letting them know.
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BZU Multan
Competitors
The biggest threat to the operational success of the branch is the better
competitors
services. Many private sector banks are offering higher rates of return to customers than J.S
Bank of Pakistan. Business of all banks is also growing with very high pace.
Economic Condition
Despite the difficult circumstances that confronted the banking sector in particular and the
country in general, J.S Bank has been still highly profitable. But, the facts cant be denied and
there might be an adverse impact of such situation. The economic crises are spreading in all
over the world and investors are not investing their savings.
Unstable Political Situation
J.S Bank has been performing very well in the presence of unstable political and
economic situation but this uncertainty is a continuous threat for the bank. The laws are
changing every day and also instability of the government
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BZU Multan
14. Conclusion
In conclusion on the result of financial analysis and after conducting SWOT analysis it
comes to known that FBL has enough current assets which maintain its liquidity. It has a
sound financial position. Conclusion about FBL Chichawatnih branch I observe during
my internship program is that staff is not complete in this branch. So on few employees
work overload which discourage their virtuous. I also observe that mostly branch ATM
machine not work properly and clients face inconvenience.
Moreover Bank Alfalah Islamic and Meezan Bank (Premier Islamic Bank) located in
same street of banking. These both introduce attractive deposit interest rates and in turn
FBL face stiff competition and challenges.
FBL Toba branch has sophisticated software installed. They buy it at cost of Rs. 8
million. I observe during my internship period that all Deposits, Payments, Western
union recording, assigning numbers to files, and many other miscellaneous works
execute through this system.
FBL provides Debit card, finance schemes, deposits facility like J.S Sahulat Current
Account, J.S Savings Account, and J.S Izafa Term Deposit Account. It also provides
assistance to agriculture sector in form of J.S Kisan Khushal Scheme. Through it bank
provide loan facility up to 80% farmer charges for agriculture purposes.
J.S Bank takes some steps to provide more products at attractive mark up to its
customers and anticipate in economic development of Pakistan.
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BZU Multan
.
15. Recommendations for Improvement
Now I want to give some suggestion and recommendations for FBL in the light of ratio
analysis and my own observation during internship program.
Management training of employees:
If professional management training is provided to employees then it explores their
internal capabilities and skills. After management training employees capable to make
critical decisions vary due to changing in economic conditions of country.
Heavy promotion activities:
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BZU Multan
FBL must take part in heavy advertisement as the people become aware of the bank.
FBL Toba branch has lack of awareness in the people and also low trust due to unproductive advertising campaign.
Increase customers Base:
There is lack of customers volume in FBL. It has the option to increase its customers
through efficient marketing system. Bank should develop healthy relations with
customers.
Home financing:
FBL Chichawatnih branch not yet issue loan for home appliances as well as for
construction of home. It must issue home financing to its clients at early steps. Because
in Toba branch this facility not provided by bank but in other banks like UBL provide
home loan facility.
Co-operative environment:
I observe during internship that some employees have rude behavior with customers.
So I think that it necessary that friendly environment of customers dealing is established
in FBL Toba branch. Irrespective of their transaction volume with bank it necessary that
seats given to customers and also give them respect. They feel cooperative
environment and their importance to the bank.
New Technology:
J.S Bank faces competition due to establishment of other banks in place. So it
necessary that it invest in new technology in order to provide fast services less costly
than competitors.
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BZU Multan
REFERENCE & SOURCES USED
Consult APA format for referencing available on VULMS of your course under the icon
DOWLOADS after clicking COURSE WEBSITE at VULMS. Also consult lecture no. 45
of STA 630 for further guidance.
One Author
Alexie, S. (1992). The business of fancydancing: Stories and
NY: Hang Loose Press
poems.Brooklyn,
General Form (Online Resources)

Author, A. A. (Year). Title of work. Retrieved from web address
Online Report with No Author Identified and No Date
GVU's 10th WWW user survey. (n.d.). Retrieved from http://www
.cc.gatech.edu/user_surveys/survey-1998-10/
ANNEXES
Also attach scanned copies of the financial statements of all your selected companies
OR provide the URL address of the website from where you have downloaded these
financial statements.
62
BZU Multan
Web Sites:
www.jsbank.com
www.google.com
www.Ask.com
Oral Data:
Valuable information was provided by Mr. Shafique (Operational Manager) and Mr. Bilal
Amin (B.S.O).
Written Data:
Annual Report
Brochure
63
BZU Multan

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INTERNSHIP REPORT

4. Brief introduction of the Organizations Business Sector

5. Overview of the organization

(b) Organizational Hierarchy chart

(c) Business volume

(d) Product lines

J.S Sahulat Current Account:

J.S Savings Account:

J.S Savings Features and Benefits:

Minimum balance of Rs.10000/ is required

Profit is calculated on the monthly minimum balance

Profit is paid semi-annually

Un-limited transactions can be made during a month

Example of J.S Savings account number 02281500001234

3 J.S Izafa Term Deposit:

Minimum investment of Rs.25000/ is required

This account free from any account maintenance charges

4 J.S Anchor Savings Account:

Minimum balance required is Rs.20000/

Profit is calculated on monthly minimum balance

Un-limited transactions can be made during a month

Profit paid on monthly basis

J.S Home finance:

Buying you new Home:

Easy facility for re-payment of loan

Maximum financing available up to 70% of market value of property

Amount payable in between 3years to 20years

Amount payable in monthly installments

Financing available is up to 70% value of land plus construction

Amount payable in between 1year to 20years

Repayment of amount in monthly installments

J.S Car Finance:

For salaried individuals your age should be between 21 and 60years

Value Added services

Payment with J.S Bank, Micronet Broadband DSL Services

Specialized services to priority customers

Now I want to explain some more J.S Bank services.

PocketMate (Debit Card):

J.S Bank Limited

National Bank of Pakistan

Muslim Commercial Bank

Bank Alfalah Limited

AL-Habib Bank Limited

Askari Commercial Bank

United Bank Limited

Habib Bank Limited

Meezan Bank Limited

Standard Chartered Bank Pakistan

f. Brief Introduction of all the Departments

Copy of C.N.I.C attested

Specimen signature card

g. Comments on the organizational structure

10. Plan of Internship Program:

b. Starting and Ending dates of my Internship:

c. Names of Departments in which I got training:

Bills clearing Department

11. Training Program:

Detailed description of the tasks assigned by me:

During my internship program in J.S Bank Limited Chichawatni branch I worked in

For business individuals copy of NTN certificates

Passport size photograph

Left and right thumb impressions (for illiterate person)

b. Partnership (documents required):