Department of commerce

Being aware of the importance of practical training, the Department of Commerce

(IUB) requires every B.Com (Hons) MS-IT student to go through training
for practical purpose as trainee.
The internship program is to broaden the vision of practical experiences with
theoretical knowledge as it increases ones capabilities to handle problems at various
stages and the ability of decision.
I tried my best to collect the valuable information and its relevant facts.
This report is the result of my internship with Bank (ztbl).

SHAHID SHARIF
B.Com (Hons) MS-IT
Session: 2006-10

Who always prayed for my success and their love and affection have always been a
source of inspiration for me to difficulties, this taught me a lot about life.

Who always provide us knowledge and guidance that becomes a successful way in
our life,

Up and above everything, I am thankful to ALMIGHTY ALLAH, the most

Beneficent and merciful, and his Holy Prophet (Peace be upon him) who is forever a
true torch of guidance for whole humanity. I am greatly obliged to ALLAH by
whom grace I have been able to complete this report successfully.

I also offer my thanks to honorable sir Prof. SAJID AMINfor providing me a chance
to work in such a prestigious organization.

I also offer my thanks to respected teacher Mr. RANA ADEEL for his valuable
guidance and contribution in making my report meaningful and useful.

S. No.

Title

Page
No.

Chapter 1
INTRODUCTION OF THE ORGNIZATION
1.1

Introduction

1.2

History

10

MARKETING MIX

12

2.1

ZTBL Products

12

2.2

Loans

19

2.3

Recovery Schedule

23

Departments

27

4.1

Analysis

32

4.2

Financial Analysis

32

4.3.1

Ratio Analysis

38

4.3.2

SWOT Analysis

44

4.3.3

Pest Analysis

48

HR Activities

50

Chapter 2

Chapter 3
3.1
Chapter 4

Chapter 5
5.1
Chapter 6

6.1

Work don by me During Internship

51

6.1

Conclusion

56

Annexure

57

CHAPTER # 1
INTRODUCTION TO ORGNIZATION.

Corporate vision

Dedicated to serve the needs of the farming community by delivering financial

products and technical service on a combative and suitable basis in a
concernment efficient and professional manner leading to success of the
bank and the farmers.

Corporate Mission

To play effective role in the promotion of economic growth by enhancing the

availability of credit to the agriculture sector through reliable access to
customable financing special programs technical assistance and other
products and services and to promote career development opportunity for
increasing professionalism and technical prophecies of employees.

Corporate Objectives

Develop and operate as a financially and operationally sustainable R.F.I of the

country.

Assist rural community, particularly the small farmers, in raising their

productivity and income levels through timely delivery of credit, advisory
and ancillary services.
Build ZTBL's image as a proactive, client friendly, financially & operationally
sustainable with indigenous product deployment.

Establish and provide backward and forward linkages to strengthen agri. value
added commodity chains.

Engage in public - private and wholesale - retail partnership to deepen outreach

and reduce operating cost.

To function as a rural commercial bank to mobilize rural capital formation and

to commercialize the agro. sector by delivering the true value of credit to the
client. Provide a wide range of risk insurance products to its clients.

Open up it venues of operation to Domestic & International Banking Industry to

avail comparative advantage

ORGANIZATIONAL STRUCTURE

PRESIDENT

SENIOR EXECUTIVE VICE PRESIDENT

SVP/Zonal Chief

VICE PRESIDENT

AVP/SO

AVP/SO

OFFICER

Supporting staff

BOARD OF DIRECTORS

Syed Qamar-Uz-Zaman Shah

Mr. Muhammad Zaka Ashraf

Chairman Board

President/ CEO

Mr. Yawar Zia

Mr. Qamar Zaman Chaudhry

Director

Director

Mr. Muhammad Iftikhar Khan Mohmand

Director

Mr. Tauqir Ahmad Faiq

Dr. Khalid Ahmad Khokhar

Mr. Imam Bux Sheikh

Director

Director

Mr. Muazam Ali

Company Secretary

Director

HISTORY OF ZTBL

Zarai Taraqiati Bank Limited (ZTBL) erstwhile Agricultural Development Bank

of Pakistan (ADBP) is the premier financial institution geared towards the
development of agriculture sector through provision of financial services and
technical know how. The restructuring of former ADBP is being carried out
with the aim to uplift the agriculture and rural sector by raising farm
productivity, streamlining the institutional credit and increasing income
generating capacity of the farming community. ZTBL was incorporated as a
Public Limited Company on 14th December, 2002 through repeal of ADB
Ordinance of 1961.
The new corporate structure redefines the bank's status as a public limited
company registered under companies Ordinance'1984 with an independent
Board of Directors which aims at ensuring good governance, autonomy,
delivering high quality.

ZTBL is a key R.F.I of Pakistan providing affordable, rural and agriculture

financial/non-financial services to the rural Pakistan , comprising 68 % of
the total population. The Bank through a country-wide network of 341
branches is serving around half a million clients annually and over one
million accumulated account holders with the average loan size of around
Rs.89,000 serving 65%, 31% & 4 % of subsistence, economic and large
growers respectively.
The total assets of the Bank stand at Rs.84 billion with authorized capital of
Rs.25 billion as of 31.12.2005, with a nation-wide working strength
comprises 5500 employees. The share of ZTBL in total national institutional
agricultural credit remains around 35%.
ZTBL was incorporated as a Public Limited Company on 14th December,
2002 through repeal of formal Agricultural Development Bank of Pakistan
Ordinance of 1961. Thereby transforming the bank as a corporate entity to
serve as a R. F.I

CHAPTER # 2

MARKETING MIX.

ZTBL Products

LOCKERS FACILITY

Zarai Taraqiati Bank Ltd. apart from its core functional activity marked with
country based agri-business, has started to serve its valued customers by
offering lockers facility. Initially, this facility is being offered at following 11
branches.

S.No

Name of Branch

Phone No.

Address

Islamabad Branch

051-9252022

Block-7/F, ZTBL Officer Colony

G-7/2, Islamabad

Main Branch
Lahore

042-7353380

47-C, Sharah-e-Quaid-e-Azam,
Lahore

Peshawar Branch

091-2262279

Gujranwala
Branch

055-9200206

Faisalabad Branch 041-9210008

Multan Branch

061-9200509

Sahiwal Branch

040-9200424

Sargodha Branch

048-9230491

Khan Pur Branch

068-5573079

Model Town- Near Paradise

Cinema Khan Pur

10

Shafi Court
Branch

021-9206006

Shafi Court Building Mereweather

Road Karachi South

11

Main Branch
Gulshan-eJohar

021-4613618

St 4/3-A Building No.1 KDA

Scheme-36 Gulistan- i -Jauhar
Karachi

Chughalpura, GT Road Reshawar

D.C Road, Gujranwala

Opposite Punjab Medical College,

Faisalabad

61-A Abdali Road, Multan

915-D Block Farid Town Sahiwal

Katchery Road, Sargodha

Following are the approved rates for rent of lockers and key deposits against
which lockers will be allocated:

Type

Specification

Rent Per
Annum

Rent after grace

period

Key Deposit

Small

6-1/2"x4-1/2"x23"

Rs.1,200/-

Rs.1,500/-

Rs. 5,000/-

Medium 13-1/2"x41/2"x23"

Rs.1,800/-

Rs.2,250/-

Rs. 10,000/-

Large

Rs.2,500/-

Rs.3,125/-

Rs. 15,000/

13-1/2"x81/2"x23"

Credit Limits

Overall Credit Limit Per Borrower

Sada Bahar Scheme under one window
operation or otherwise

Rs.1.000 Million

Rs.0.500 Million

PER ACRE CREDIT LIMITS

Major Crops:
Wheat

9,600

Paddy

10,300

Sugarcane 20,600
Cotton

14,600

Minor Crops:
Potato

18,200

Bajra

4,000

Tobacco

2,300

Jawar

5,000

Maize
(Hybri
d)

11,800

Gram

4,000

Maize
(Local)

5,400

Guara

3,000

Mash

3,000

Caster Oil

6,000

Lentil

6,000

Barlay

9,000

Groundnut

9,000

Berceme

4,900

Sunflower

8,700

Janter

4,000

Soyabean

6,500

Garlac

26,000

Canola

4,300

Turmeric

24,000

Rape Seed

4,300

Ginger

30,000

Mustard
Mung

4,000

Tomato

1,700

Mature Orchard/Fruits Crops:

Pear

1,500

Dates

25,000

Loquat

20,000

Strawberry

25,000

Plum

17,000

Tea

60,000

Apple

34,000

Guava

15,000

Papaya

22,600

Pomegrante

25,000

Almond

20,000

Palm

15,000

Coconut

20,000

Olive Oil

13,000

Lichi

25,000

Walnut

23,000

Cherry

25,000

Persimen

15,000

Zizi

25,000
Phus(Bhe
r)

Mango

30,000

Apricot

25,000

Melon

13,000

Banana

37,000

Water Melon

11,000

Peach

25,000

Musk Melon

12,000

Citrus

34,000

Development Loans

ZTBL providing development loans for following purposes:

Installation of tubewells (including cost of power lines upto 8 poles and

transformer/Ancillary structure.
Pumping sets/lift irrigation pumps (including peter engines).
Open Wells.
Purchase of improved farm machinery (including tractors,, power tillers,
implements, cutter binders (reaper wind rover), threshers, trolley, spraying
equipment, cane crusher and miscellaneous agricultural equipment, tractor
pulled harvesters, self propelled combines.
Sprinkler irrigation.
Drip irrigation.
Orchards and Fruit Nurseries
Poultry & Hatchery farms structures & equipments.
Minor crops (Mentha Aryensis, Asparagus etc.)
Seasonal & Development loans for tea plantation.
Fattening of livestock for meat purposes and small dairy (milch animal).
Farm forestry/Plantation of trees and nurseries including hybrid poplar
cultivation, Oil Palm seedling.

Desilting, alignment and lining of water courses.

Cold Storage.
Bamboo Cultivation.
Bee keeping.
Bio-gas Plant.
Levelling, lay out, terracing, fencing, soil improvement & embankments.
Repair of Tubewell/Tractor/Fishing Boat & Engine.
Goat/sheep farming excluding structures.
Construction of Pacca Water Courses.
Tobacco Barns.

Fisheries (inland and marine) including purchase of trawlers/boats/equipments

nets/twins, marine engines (outboard/inboard) etc.
Drilling equipment.
Boring rig.
Trucks.
Wind Mill.
Reclamation of land.
Jungle Clearance.
Loan for personal computer for farm management to progressive farmers
owning at least 25 acres of irrigated or 50 acres of rainfed land .
Marketing loans for crops and other agricultural products to be allowed with
Head Office prior permission.
Bulldozers.
Stocking of Agricultural Machinery, implements and equipment, seeds,
fertilizers and chemicals used in agriculture (with prior approval of Head
Office).
Animals driven Carts with prior approval of HO .

Solar Energy Pumps.

Providing Spraying services/tubewell water services.
Purchase of motorcycles for milkmen.
Construction of Godowns/Warehouses on farms.
Green House, mini-tunnels, walk-in tunnels.
Construction of Modules and Culverts.
Cotton Pickers, (with the prior approval of Head Office), Groundnut Diggers,
Potato Diggers.
Farm construction (sheds for animal and equipments and other farm requisites
etc.)
Opening of private veterinary clinics.
Opening of Private Diagnostic Veterinary Laboratories in private sector.
Opening of Private artificial insemination centres.
Opening of veterinary medical stores.
Replacement of engine and spare parts for Marine Fisheries.
Sulphuric Acid Generator.

Construction of Mini Dams/Check Karez/water Reservoirs/water catchments for

Raid Fed (Barani Areas).
Milk Chilling Units.
Compound feed making industry.
Construction of Cold Storages by Poultry Producers.
Construction of Cold Storages by Fishermen.
Arboriculture (Wind breaker, shelter belts, hedges).
Construction of Laboratory for Integrated Pest Management (IPM)
Hole Digger .
Purchase of Processing machinery including Seed Dryers, Vegetable Dryers &
Fruit Dryers for use at farms.

Those types of loans which are advanced for seed, fertilizer, pesticides, labour
charges and POL etc. to grow crops and vegetables including working
capital for poultry, dairy, orchard, fishery and are recoverable within 18
months.
Types of Securities

Immovable Property

Under Pass Book System

80%

Outside Pass Book System

70%

Under Alienability Certificate

66%

Commercial/Industrial Land under Pass Book

80%

Outside Passbook System

Urban Residential/Commercial Plots in all
localities outside Pass Book

75%

Alienability Certificate

66%

Residential/Commercial Buildings

70%

Lease hold rights of a leased land of CDA/KDA

with 99 years lease

70%

Agricultural Land

Under Pass Book System

80%

Outside Pass Book System

70%

Under Alienability Certificate

66%

Commercial/Industrial Land under Pass Book

80%

Outside Passbook System

Urban Residential/Commercial Plots in all
localities outside Pass Book

75%

Alienability Certificate

66%

Residential/Commercial Buildings

70%

Lease hold rights of a leased land of CDA/KDA

with 99 years lease

70%

Moveable Property

Unconditional Bank guarantee from

scheduled Banks

Upto maximum amount of an unconditional Bank guarantee after

keeping sufficient margin for un-paid
mark-up, cost, charges and expenses.

Guarantee issued by Central or

Provincial Government

Full amount of loan plus return and other

charges.

Government securities

85% of face value or market value

whichever is less.

Defense Savings & FEB Certificates

75%

Fix Term Deposits Receipts

85% of face value.

NIT Units

80% of the face value or market value

whichever is less.

Life Insurance policies

85% of surrender value

Pledge of Potatoes/Seed Potatoes price Upto 75% of Govt. support

or market value which ever is less

Personal Guarantee

Against a bond with two sureties under General Credit and one surety in Special
Schemes upto Rs.25,000/-

CHAPTER # 3.

DEPARTMENTS.

FIELD OF ACTIVITIES/ DEPARTMENTS OF BANK

The main departments of a bank are as under:

Budget & Funds Management department

Central Accounts Department
Regulatory Reporting Department.
H R Operations Department
Training & Development Department
Performance Management Department
Policy & Regulatory Department
IT Operations Department
IT System Development Department
10.IT-User Support Department
11. IT Net work Department 12.IT-Security Department
13.Corporate Audit Department

Field Audit Department

Agricultural Technology Department
Credit Policy Department
Branch Operations Department
Business Development & Marketing Department
Credit Operations Department
Risk Management Department
Recovery Department
SAM Department
Research & Planning Department
Data Bank
General Services Department
Medical Services Department.

DEPOSIT DEPARTMENT.
The function of deposit department is to collect cash from the customers and to
deposit it into the accounts, maintained by them. Their classification is based
on duration and purpose for which the account is maintained.
The following information is required to be furnished
Name
Full address
Specimen signature
Introductory refrences
Declaration that he will follow them

Different Schemes Of Deposits Of The Bank.

01.

Business Deposit Accounts

Current Account

PLS Saving Account

Sada Bahar Scheme
05.

BBA Accounts

06.

ZTBL Accounts ( ZBA)

a.

Deposit Account 30-days & above.

b.

PLS Terms 03-months

c.

PLS terms 06-months.

d.

PLS terms 12-months.

e.

PLS Terms 24-months.

f.

PLS Terms 36-Months

g.

PLS Terms 48-months

h. PLS Terms 60-months
i. ZTDC for three years.

OVERALL CREDIT DISBURSEMENT.

The bank disbursed an overall amount of Rs.55,912 million during the

year 2009 as compared to Rs.52,521 million disbursed in the year 2008
representing an increase of 6.5% . The number of borrowers served
by the bank increased to 475,756 during the year 2009 from 443,874 in
2008.

The impact of quantum increase in ZTBL credit is visible from harvest of

bumper Wheat and Sugarcane crops during the period under review.
The bank managed the funds availability from its own resources
through boosting recovery and recycling the recovery proceeds for
increased disbursements.

RECOVERY OPERATIONS.

During the year 2009, ZTBL attained an all time record recovery of
Bank's dues with the untiring efforts, hard work and devoted
involvement of its staff, it recovered Rs.58,080 million as
compared to Rs.49,156 million during the previous year showing an
increase of Rs.8,294 million and growth of 18.2%. The bank also
recovered an amount of Rs.5,078 million out of SAM portfolio during
the year 2009 compared to Rs.2858 million recovered during the year
2006, thus making more funds available for farm credit.

DEPOSIT MOBILIZATION.

The bank raised deposit of Rs.4,323 million as on 31-12-2009 compared

to Rs.2,882 million as on 31-12-2008, thus adding to its financial
viability for providing extended banking services for the customers
particularly rural clientele.
NEW INITIATIVES.

To strengthen the bank's operational viability and to accelerate the

pace of business of the bank on commercial lines, the bank's
management has taken major initiatives to introduce diversified
schemes. Two deposit products Zarai Bachat Account and Zarai Term
Deposit Schemes were launched, having better annualized rate of
return and customized features.

INTERNAL AUDIT.

In accordance with the provisions of Code of Corporate Governance, the

Internal Audit Division with functional reporting to the Audit
Committee of Board of Directors is functioning in ZTBL. Internal
Audit Division consists^qMhree Departments aJJHead Office and six
Audit Zones inijhe filed. The Audit Zones in the filed are working with 25
Audit^ Teams. The Audit Teams Conducted audit of 100 % activities
transacted at branches and SVP/lncharge of Audit Zone conducts the
audit of Zonal Offices to safeguard bank's interest.

COMPLIANCE PROGRAMME.

Compliance Programme in ZTBL aims at ensuring compliance with the

bank's instructions, SBP regulations, relevant provisions of local laws etc.
with a view to minimize legal and regulatory risks. The compliance
function has been strengthened to augment internal monitoring and
control for improving the effectiveness of bank's policies and procedures.
HUMAN RESOURCE DEVELOPMENT.

The bank continued its efforts to upgrade its professional competence and
management capabilities of officers and staff by arranging various
operational and functional courses. During 2009, 20 courses were
conducted and 563 officials were trained in Bank's Staff Colleges at
Islamabad and Karachi.

NFORMATION TECHNOLOGY.
The bank continued to deploy the latest information and communication
technology to enhance the quality, efficiency and speed of services to
improve the operations. For data transmission from field to Head Office
through telecommunication lines, ISO successfully deployed the Wide
Area Network (WAN) between the Head Office and the 25 Zonal Offices
around the country. WAN facility was also extended to two computer
centres located at Gilgit and Chitral. This has reduce the delivery time of
data from the Zonal Office to Head Office and a lot of improvement has
been witnessed in meeting the various reporting deadlines of State
Bank of Pakistan.

To enhance efficiency of inter-office communications, ISO successfully

extended the e-mail facility at the Head Office as well as the Zonal
Offices which has improved the quality and speed of communication
between these offices.
I
SO provided latest hardware including Personal Computers to all field offices
across the country which has given impetus to the modernization
and automation of bank's operation.

On the software front, a comprehensive branch-based Deposit Management

System was developed under ORACLE that provides automation and
control over the management and operations of the deposit products of
the bank. Other softwares developed include Nonperforming Loan
System in the field, Software for White Revolution Scheme, SAM
Reporting System, Payroll Management System, NADRA'S CNIC
Verification System, CPF/GPF System for Accounts, Performance
Appraisal Module of HR, etc.
The bank has also launched evening banking facilities at designated branches
in the year 2008 in order to survive in the competitive financial services
market. ZTBL also plans to enter into strategic partnership with an
organization of international repute on fund remittances to facilitate its
clients as well as general public.

CHAPTER # 4.

ANALYSIS.

Profit & Loss Vertical Analysis

2009

2008

Mark-up/return/interest earned

100%

100% 100% 100% 100%

Mark-up/return/interest expensed

41%

49%

47%

6%

7%

Net mark-up/interest income

59%

51%

53%

94%

93%

Provision against non-performing loans

and advances

23%

44%

29%

69%

65%

Provision/(reversal) for diminution in

the value of investment

0%

0%

0%

0%

0%

Write offs under Government relief

packages

0%

8%

25%

0%

0%

Bad debts written off directly

23%

52%

54%

69%

65%

36%

-1%

-1%

25%

29%

Fee, commission and brokerage income

0%

0%

0%

0%

0%

Dividend income

0%

0%

0%

0%

0%

Other income

68%

81%

92%

12%

15%

Total non mark-up/interest income

68%

81%

92%

12%

15%

104%

81%

91%

37%

44%

53%

54%

46%

38%

39%

Net mark-up/interest income after

provisions

2007

2006

2005

NON MARK-UP/INTEREST INCOME

NON MARK-UP/INTEREST
EXPENSES
Administrative expenses

Provision against other assets

4%

1%

34%

0%

0%

Provision for stolen fixed assets

0%

0%

0%

0%

0%

Other charges

0%

0%

0%

0%

0%

Total non mark-up/interest expenses

57%

55%

80%

39%

39%

47%

26%

11%

-1%

4%

UNUSUAL ITEM

PROFIT BEFORE TAXATION

47%

26%

11%

-1%

4%

Taxation - Current

16%

9%

4%

1%

1%

- Prior years

0%

0%

0%

0%

0%

- Deferred

0%

2%

0%

0%

0%

16%

11%

4%

1%

1%

PROFIT AFTER TAXATION

31%

15%

7%

-2%

4%

Un appropriated profit brought forward

22%

14%

12%

13%

12%

Profit available for appropriation

52%

29%

19%

11%

16%

For Analysis purpose of ZTBL Markup/ Interest Earned is taken as base

value. It is difficult to determine the actual cost of Markup/ Interest
expense as ZTBL is government controlled Enterprise. Interest Rates
offered by ZTBL are much lesser then rates offered by any other Bank.
Due to these factors analysis show an abnormal behavior of Interest
expense as 7% in 2005 and increased to 49% in 2008. Provision against
non performing loans also shows an abnormal behavior. The possible
reason for this behavior could be influence of Government over the
Management of ZTBL. Analysis of written of Under Government Relief
Package also support this argument. Other Income also shows major
contribution in over all Profit & Loss Account. On Expenses Portion of
ZTBL analysis shows normal behavior.

Balance Sheet Vertical Analysis

2009

2008

2007

2006

2005

Cash and balances with

treasury banks

2%

2%

2%

2%

2%

Balances with other banks

16%

13%

9%

9%

11%

Lendings to financial
institutions

0%

0%

0%

0%

0%

Investments - net

5%

8%

7%

16%

14%

Advances - net

68%

66%

72%

64%

65%

Operating fixed assets

1%

1%

1%

1%

1%

Deffered Tax Assets

0%

0%

0%

0%

0%

Other assets - net

8%

10%

10%

8%

8%

100%

100%

100%

100%

100%

Bills payable

1%

0%

0%

0%

0%

Borrowings

50%

55%

60%

62%

62%

Deposits and other accounts

5%

5%

3%

3%

2%

Sub-ordinated loans

3%

3%

4%

4%

4%

Liabilities against assets

subject to finance lease

0%

0%

0%

0%

0%

Deferred tax liability

0%

0%

0%

0%

0%

Other liabilities

24%

20%

17%

15%

16%

ASSETS

LIABILITIES

83%

84%

84%

84%

85%

17%

16%

16%

16%

16%

Share capital

12%

13%

14%

14%

14%

Reserves

1%

1%

0%

0%

0%

Un appropriated profit

3%

2%

1%

1%

1%

16%

15%

15%

16%

16%

0%

1%

0%

0%

0%

17%

16%

16%

16%

16%

NET ASSETS

REPRESENTED BY

Surplus on revaluation of
assets - net of tax

2009

2008

2007

2006

Comparative analysis Profit & Loss

Mark-up/return/interest earned

21%

17%

-12%

-9%

Mark-up/return/interest expensed

2%

22%

615%

-20%

Net mark-up/interest income

38%

13%

-50%

-8%

Provision against non-performing

loans and advances

-38%

75%

-63%

-3%

Provision/(reversal) for
diminution in the value of
investment

-285%

-107%

-1828%

-11%

Write offs under Government

relief packages

-100%

-62%

Bad debts written off directly

-47%

12%

-31%

-3%

-38%

-104%

-21%

Net mark-up/interest income after

provisions

74
84
%

NON MARK-UP/INTEREST
INCOME

Fee, commission and brokerage

income

88%

-8%

-19%

5%

Dividend income

430%

-67%

0%

2%

Other income

1%

4%

566%

-26%

Total non mark-up/interest

income

1%

4%

559%

-26%

56%

4%

115%

-22%

Administrative expenses

20%

37%

6%

-11%

Provision against other assets

367%

-96%

15739% -19%

Other charges

-84%

72%

-10%

-5%

Total non mark-up/interest

expenses

26%

-20%

83%

-11%

119%

184%

-806%

-128%

PROFIT BEFORE TAXATION

122%

179%

-806%

-128%

Taxation - Current

118%

193%

466%

-26%

NON MARK-UP/INTEREST
EXPENSES

Provision for stolen fixed assets

UNUSUAL ITEM

- Prior years

52%

- Deferred

-112%

1080%

-1658%

-5%

84%

234%

500%

-26%

PROFIT AFTER TAXATION

150%

150%

-423%

-147%

Un appropriated profit brought

forward

83%

44%

-18%

-5%

Profit available for appropriation

117%

83%

53%

-38%

Comparative Analysis shows year by year performance over the last year. In
2006 and 2007 over all lending of the ZTBL shows declining trend while
afterwards jump has been seen on overall lending of ZTBL. Markup /
Interest Expense was much higher on 2007 as compare to 2006 but after
2007 it shows an smooth increase as comparing to Increase in Lending.

2009

2008

2007

2006

Comparative analysis Balance Sheet

ASSETS
Cash and balances with treasury
banks

-18%

62%

-18%

-9%

Balances with other banks

33%

55%

0%

-9%

Investments - net

-34%

33%

-56%

-7%

Advances - net

14%

0%

16%

-9%

Operating fixed assets

32%

6%

18%

-9%

Deffered Tax Assets

0%

0%

-100%

-9%

Other assets - net

-10%

14%

26%

-9%

10%

9%

3%

0%

Bills payable

56%

42%

17%

11%

Borrowings

0%

0%

0%

0%

Deposits and other accounts

26%

50%

9%

43%

Sub-ordinated loans

0%

0%

0%

0%

Liabilities against assets subject to

finance lease

0%

0%

0%

0%

Deferred tax liability

56%

1462%

0%

0%

Other liabilities

27%

35%

18%

-9%

Lendings to financial institutions

-

LIABILITIES

8%

9%

3%

-1%

16%

10%

4%

-1%

Share capital

6%

0%

0%

0%

Reserves

92%

57%

22%

1%

Unappropriated profit

78%

83%

42%

-21%

18%

8%

3%

-1%

-28%

89%

48%

5%

16%

10%

4%

-1%

NET ASSETS

REPRESENTED BY

Surplus on revaluation of assets - net

of tax

RATIO ANALYSES

Advance to Deposit Ratio

Years

2009

2008

2007

2006

Advance to Deposit Ratio

1289%

1419%

2134% 2003%

2005
3148%

Advance to deposit Ratio measures the Advances as compare to Deposits held

by Bank. Advance to deposit ratio by ZTBL is much higher which is a
risk factor and could harm the bank liquidity position.
Cash to Deposit Ratio

Cash to Deposit Ratio

2009

2008

2007

2006

2005

32%

49%

45%

60%

94%

Cash to deposit ration Measures the overall cash available by Bank against
the deposits held by Bank. Average Cash to deposit Ratio is 60% which is
very good.

Return on Equity

Year

2009

2008

2007

2006

2005

Return on Equity

24%

15%

8%

6%

7%

Return on Equity shows profits earned by the organization as percentage of

equity invested. Return on Equity ranges 7% to 24% which is quit good.

Return on Assets

Return on Assets

2009

2008

2007

2006

2005

16%

15%

15%

16%

16%

Return on Assets shows overall profits earned by the organization as the

percentage of Total Assets maintained by the Entity. Return on Assets
ranges from 15% to 16%.
Debt Equity Ratio

Debt Equity Ratio

2009

2008

2007

2006

2005

303%

359%

387%

398%

392%

Debt Equity ratio shows the adequacy of capital structure of the

organization. In Case of ZTBL it is quit high, which could be a risk
factor.
Equity to Deposit Ratio

Equity to Deposit Ratio

2009

2008

2007

2006

2005

311%

330%

459%

487%

706%

Equity to deposit ratio measures the equity invested as compare to total

Deposits. Equity to deposit ratio ranges from 311% to 706%.
Investment to Total Assets

Investment to Total Assets

2009

2008

2007

2006

2005

5%

8%

7%

16%

17%

Investment to total assets shows the Investments made by the Bank as

compare to the Investments Made to Total Assets. Investment ratio is
very low as compare to total investment.
Operating Profit Margin

Operating Profit Margin

2009

2008

2007

2006

2005

59%

51%

53%

94%

93%

Operating Profit Margin shows operating profit after Operating Expenses.

Average operating Profit Ratio is 65% which is very good.

Profitability Ratio

Profitability Ratio

2009

2008

2007

2006

2005

31%

15%

7%

-2%

4%

Profitability ratio shows the overall Profitability of the Organization which

shows sudden increases in 2009 of 16%.

SWOT ANALYSIS

During my internship period at ZTBL, Minchanabad Branch I performed

SWOT analysis as under.

STRENGTHS:

ZTBL Minchanabad covers an area of 1372 Sq. km. Almost all the area is
cultivable and fertile land for crop production. Well established M CO
(Mobile Credit Officers) system is the main strength of the
ZTBL as compared to its competitors. Among the field force of
ZTBL Mobile Credit Officers has to play the pivotal role. MCO.s
are Agriculture graduates, who not only provides credit to the
farmer at its door step, but also provides technical know how
for good crop production.

A MCO Usually controls a circle consisting of 20 to 25 villages. He

remains in contact with the farmer from the sowing of crops to its
harvesting. This close contact with farmer ensures close contact
with customer.

In 2006, the total outstanding farm loans amounted to Rs68.39 billion of which
Rs20.10 billion was NPL. In 2005, the total NPL was Rs23.42 billion out of
total farm loans stock of Rs74.55 billion.
The Zarai Tarqiati Bank (ZTBL) is showing a gradual improvement in
reducing NPLs ratio of farm loans to 22.7 per cent in 2008 from29.4 per
cent in 2007 and 31.4 per cent in 2006. The government controlled ZTBL
remains the single largest operator in farm lending that maintained a stock
of Rs73.62 billion outstanding farm loans in 2008. Of this, Rs16.70 billion
was NPL.

Weaknesses:

Branch is working with 5 Mobile Credit Officers. Branch contained 8019 loan
cases of non- performing and performing loan cases. It means one MCO is
dealing with on an average 1604 loan cases having portfolio of 155.101
millions. It is worth mentioning that such huge volume of portfolio and
large numbers of borrowers is beyond the control of one MCO. It is the
basic reason ofjow_out reach of agri- financing in Minchanabad 2.57%
only.

MCOs circles may be bifurcate and numbers of MCOs be increased. Rate of

markup on ZTBL loan is 9% with 1% Rebate for timely repayment of
loan. This is a main weak area constraining the banks vision of
commercially viable institution. This is despite the fact that effective lending
rates on agri-finance are always higher as compared to corporate and
commercial loans mainly due to "high administrative and transaction cost
and high risk of default," as report of the State Bank given to all
commercial banks reveals. Other commercial banks financing in the same
sector are charging markup in the range of 16 to 22%. Rate of mark up of
ZTBL is also lower than the prevailing double digit inflation rate; which is
leading to decreasing net worth of the banks balance sheet in real terms.

Recovery proceeding to recover the bank dues has since been suspended due to
political pressure. It may be restored to ensure the recovery of huge amount
of default. Prudential regulations to classify the agri loan are not match
with the income sources of agricultural community as per prevailing
cropping pattern. It may be revised up to the extent of agri- loans
depending upon the harvesting of cash crops.
OPPTURTUNITIES:

The Agriculture is the mainstay of country's economy where 66% of rural

population getting livelihood from this sector and is the most important
sector for employment and income generation. This sector accounts
for21% of the GDP, 42% of employed labor force and 60% direct or
indirect Exports. Last six years data as shown in the following table indicate
that contribution of agri. sector in the country's economy has reduced
from 24.1% to 20.9 %. Being backbone of the country's economy,
agriculture sector needs to be developed and its contribution to GDP must
also increase instead of decreasing.

The outreach of agricultural credit is limited to the extent of about two

million borrowers as
against total farmer's population of 6.6 million. Majority of the country's
farmers i.e. 84 percent comprises of small farmers and rely on informal
sector credit at exorbitant rates to meet their agricultural credit
requirements. One of the main reasons of the financial exclusion of these
small farmers has been their inability to provide collateral to banks. It
is expected that the problem of financial exclusion wil be mitigated with the
introduction of group-based financing scheme for small farmers.

There is a need to adopt a forward-looking approach to expand the

outreach for meeting credit needs of priority sectors of the economy
including micro, small medium enterprise (SME), agriculture and rural
housing sectors

For adequate access to agri credit, increasing agri financing institutions and
branches of increase in number of Agri. Credit Officers, enhanced budget
allocation, decrease in cost of credit especially for good repayment master,
training of farmers though Vocational Institutions and field days, publicity
through media, establishment of exclusive agri. T.V. Station, relaxation of
maximum limit of one million for agri. credit, simplification of credit
documentation and loan insurance are of utmost importance which may be
given due weight age.
Development of farmers friendly product to meet with their on farm and off
farm needs on their or steps may be considered e.g. agri. credit card, farm
computerization, debt servicing loans, loan for marketing of agri. produce,
running finance limit, loan for farm utility bills, loan for hiring of stores/ go
downs, loan for construction of stores, cold stores/go downs for custom
hiring and consumption loan for children education/marriage etc may go a
long way in developing agriculture/rural sector.

THREATS:

Previously ZTBL was single largest source of supply of agri. Finance. Now
realizing the potential in this sector, other commercials banks have
stepped in and started financing in the agriculture sector. As a result, share
of ZTBL in total institutional credit has declined to 41% in year 2008.

Rate of mark up is also posing threat to its survival on commercial lines. Mark
up rate of ZTBL is very low i.e. 9% only, while SBP minimum markup rates
have been raised up to 13.5%. Policies of ZTBL to fix the markup rates
are being politicized. Bank is unable to meet the even operational cost
with such very low rate of mark up. It is even lower than inflation rate of
the country. Mostly branches of ZTBL are working in the rental buildings
situated in far from commercial markets. These buildings are not designed
as per seating requirements for staff and general public, visiting to branch.

Social:
Banks always helped people in improvement of living condition of poor
people in various forms like giving loans to poor for starting business or
directly providing them the instruments that could enhance their living
conditions. Similarly UBL always tried to provide the needy people loans
on soft terms and also helped to eradicate unemployment by providing
job opportunities

Technology :
The Banking sector in Pakistan has experienced a rapid transformation. Just
about a decade back this sector was limited to the Sarkari (read
nationalized) and co-operative banks. Then came the multi-national
banks, but these were confined to serving an elite few. One could regard
the past as the 'medieval ages' in the banking industry, wherein every
branch of the same bank acted as an independent information silo and
multi-channel banking (ATMs, Net banking, Tele-banking, etc) was
almost non-existent. Today banks have to look much beyond just
providing a multi-channel service platform for its customers. There are
other pressing issues that banks need to address in order to chalk-out a
roadmap for the future. Here are the top three concerns in the mind of
every bank's CEO. The customer is interested in how he/she can benefit
from the bank and its products. That's why it becomes necessary for a
bank to differentiate its products from the others. Some of the ways in
which differentiation can be introduced are through specialization, new
products, and increasing the value.

CHAPTER # 5.
HUMAN RESOURCE ACTIVITIES
The importance of manpower cannot be denied in any organization. In case
of banks it is the most valuable asset, because the bank is very sensitive
organization and to be in harmony with this sensitivity, need for proper
human resource is felt badly. Critical analysis of ZTBL necessities
recommending suggestions that would increase banks efficiency and
effectiveness.

Basis for Promotion:

A sizeable portion of the officers of ZTBL, are promoted in without test and
interviews to officers cadre. The promotion policy must be too tight and
transparent that no one may have the chance to be promoted on criteria
other than the required qualification, experience and performance. As
for the present excess staff, those not found up to the required criteria,
may be given GHS etc.

Needs of change in Recruitment Policy:

It is important to say that the external level market is full of the required
talent like MBA, M. Com etc,. But on the country only graduation with
simple subjects is still the requisite qualification for officers cadre,
which has already worked amply in the devastation of ZTBL.

Computer Trainings:
The present conventional and orthodox training programmers need to be
made more comprehensive and reinforced with inclusion of computer
training courses.

Proper Documentation:
Loans become irrecoverable through court of law in case of default when the
bank fails to prove their claims against the delinquent borrower. If
documents are obtained properly as per terms of the loan it is not
difficult for the counsel of the bank to get decree against the defaulter.
For proper and valid documentation the following aspects must be kept
in mind.

The bank should confirm that standard loan documentation is in place for
each credit facility prior to disbursement. If the documents required

CHAPTER # 6.
WORK DONE BY ME DURING INTERNSHIP

I have worked as an internee in the Zarai Taraqiati Bank limited,

Minchanabad branch for six weeks. During my internship I learned a lot
about the banking work. The Minchanabad branch is a medium size
branch of Bahawalpur Zone comparatively with others. I tried my best
level to gain from this internship experience.

On first day i reported to the branch Manager on the order of Mr.

Muhammad Khalid Zia, Zonal Chief, ZTBL Bahawalpur and he guided
and informed me about the branch. In my first week he had given me
information about the overall banking in this branch. He told me about
the departments of the bank and some other basic information about the
bank, records, etc.

In the next week he told me that now I have to start work in the different
section. I started my internship in account section. The most of the
working was conducted in this section. There was a lot of burden of work
in account section. In this section the following are major activities :Account opening.
Maintaining of ledger
Maintaining of deposit balancing on computer.

Account opening.

In this department daily many peoples come for open the accounts according
to their own choice of account. In PLS Saving account and current
account procedure of opening of account is the same except the initial
deposit.
The account opening form contains the following information's.
The type of account which any person want to be open, he has to
select that.
Nature of account whether individual or proprietorship or other.
Currency (in which want to operate).
Particular of deposits. (Period for operation).
Complete address.
Telephone number.
When this form is filled then signature of the person who want to open the
account are to be taken on the specimen signature card. Then it is
recorded in the PC. Then after a week letter of thanks when received by
the person then a cheques book is issued to him. Now he can withdraw
the amount by tilling cheques up to the extent of his balance, in the
account.

In that account opening I also write the letter to the customer. There are two
letter are written while opening the account
New customer
Introducer of new customer
These are printed letter on which just write the name of person and his
addresser written
in the form.

Preparation of cheque book;

I issued cheques books. The cheques book is issued after opening of the
account. The
Account No. is stamped by the rubber stamp on each cheque. Then it is given
to the
person.
When all cheques books are issued to the customers then these are recorded in
the cheque books issuance register. All cheque books are recorded with
their a/c number and name of the person.
Cash Section.
I spent one week in the cash counter here I issued token to the customers and
then recorded it into the token book. The procedure of issuing the token
is that when cheque is presented at the counter. Then following things are
checked.
The signatures on front and at the back.
Similarities in the signatures of the issuer of the cheque.
Date.
Amounts whether tally with the amount written in words.
Then token is issued to him and cheques are stamped at the back at which
date and token No. Is filled. Then all cheques arc forwarded to the next
counter where signatures are compared with the signatures in the book
and the balance of the account is checked. If the cheque has not any fault
on it then it is given to cash payment counter and cash is paid to the
customer up to the amount mentioned on the cheques. I spent one week in
this department.
I also completed their pending token books also.
01. Scroll book:
When cash is received at the counter it is recorded in the scroll book.
02. Paying cash book:
The cashier makes entry in the paying cash book when cash is paid.

03. Token book:

When any cheque or any negotiable instrument is presented it is recorded in
the token book then token is issued.
04. Cash balance book:
The consolidated figure of receipt and payment of cash is entered in cash
balance book.

Why account is open.

It is not safe for private individual to keep their surplus money at home. They
can keep their money in safe custody by opening accounts in a bank.
They can open deposit accounts for fixed period. The deposit account
also earns interest for the depositors. Again the businessman conducts
transaction is for thousands of rupees daily. It is unsafe to keep so much
cash in hand for carrying on business transactions. They may put their
money with some banks by opening deposit accounts. Now they can draw
cheques for settlement of transactions without involving cash.

Procedure of opening of an account:

There are certain formalities which are to be observed for opening of a

current account or saving a/c. With a bank , these formalities are as
Request of opening of an account.
Obtaining introduction
Specimen signatures
Minimum initial deposit
Operating the account / cheque book

l).Request of opening of an account.

The customer has to fill an account opening form . it is a formal request by
a customer to the bank to allow him to have and operate the current
or saving account

2). Obtaining introduction.

The bank before opening an account obtains introduction of the customers
from an old customer, responsible person etc.

3). Specimen signatures.

When the banker satisfied about the information's provided in the form hen
the banker obtains the specimen signatures of the customer on the
signature book or on card. The duty of a banker is to verify customer's
signature on the cheques with his specimen signature in order to
ascertain whether there has been any forgery or fraud.

4). Minimum initial deposit.

In Pakistan to open up an account in the PLS account is up to Rs.JOOO/- it is
the minimum requirement. However the account of zakat dependent can
be opened by Rs.200/5). Operating the account./ cheque book.
When the account is operated the banker gives a pay-in-slip book, cheque
Book, pass book with the view to operate it.

CONCLUSION
Almost all the ratios show a positive trend, which indicates that
profitability; solvency and liquidity position of bank is sound. It means that the
organization (ZTBL) is working progressively and the management is performing
its role in a very good manner.

I have worked as an internee in ZTBL for six weeks. During my internship I

learned a lot about the banking work.On first day I reported to the branch
manager and he guided me and gave me information about the branch. In first
week he had given me information about the overall banking in this branch. He
told me about the bank and some other basic information about the bank, cheques,
records, etc.

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