1. Internship Report On The Punjab Provincial Co-operative Bank Ltd
A FARMER FRIENDLY BANK
Internship Report On The Punjab Provincial Co-operative Bank Ltd

2. Introduction! Student Name Muhammad Zubair Anjum Student IDBC
Degree Program
BS-Business Administration
Area of Specialization
Finance

3. Contents! Org Hierarchy Chart Training Program Ratio Analysis
Intro of the Organization 1
Org Hierarchy Chart 2
Training Program 3
Ratio Analysis 4
Conclusion 5
Recommendation 6

4. Organization Introduction!
Creation of Bank
PPCBL created through cooperative societies act 1924
Funding to central cooperative banks & societies
Setup was created at Tehsil & District Level
Major Objectives
To promote cooperation through cooperative societies
To reduce poverty by providing less markup loans
To increase production of agriculture sector

5. Organization Introduction!
Products
Bank provides two types of loaning products
Crop loans to cooperative societies
Loans like goat sheep finance to individual farmers
Medium term tractor finance & livestock projects finance
Services
Remittance
Crop insurance, Pension scheme
Utility bills collection & lockers facilities

6. Organization Introduction!
Branch Network
Extensive network of 159 branches
Eight zonal offices throughout Punjab
Head office bank square Share-Qaid-E-Azam Lahore
Business Volume
Approximately billion rupees in total assets
Approximately 4.65 billion rupees liabilities
Shareholders equity is 6 Billion

7. Detailed Business Volume
Description of Accounts
In 2009
Rs.(Mil )
In 2010
Rs.(Mil)
In 2011
Profit Before tax
( )
( )
Profit After Tax / Net Inc
( )
Equity balance total
87.361
Advance and Net
Total Assets
Deposits & Other A/C
Investments
Total Current Liabilities
Earning Per Share
(225.80)
(41.41)
110.53

8. Organization Competitors
Farmer Banking Competitors
Zarrai Taraqiati Bank Ltd
Khushali Bank Ltd
General Banking Competitors
MCB Bank Limited
Habib Bank Limited
SILKBANK Limited
United Bank Limited
Allied Bank Limited
Askari Commercial Bank Limited
Habib Metropolitan Bank Limited

9. Organizational Hierarchy Chart
President / CEO

10. Head Business Development
Organizational Hierarchy Chart
Head Business Development
C.F.O
Head
H.R
Head
Internal
Cont &
Compliance
Deputy Head
Retail /
Corporate
Banking
Deputy
Head
Reconciliation
Deputy
Head
Credit Risk
Deputy
Head
Operations
Deputy
Head
SAM
Deputy
Head
Admin & Estt
Deputy
Head
Internal
Control
Deputy
Head
Accounts
Deputy
Head
C.A.D
Deputy
Head
I.T
Deputy
Head
Legal
Deputy
Head
Staff
Benefit & Tax
Deputy
Head
Compliance
Deputy
Head
Treasury
Deputy Head
Engineering
&
Properties
Deputy
Head
Training
Compliance
Officers

11. Organizational Hierarchy Chart
Officer(s)
Computer
Operator
Officer(s)
Computer
Operator
Officer(s)
Computer
Operator
Branch Manager

12. Organizational Hierarchy Chart
Officer(s)
Supporting Staff
Cashier
Messenger
/ Guards

13. Training Program Account Opening Department Tasks
Filling account opening form
Opening accounts & issuing checque books
Preparation of vouchers
Bill Collection Department Tasks
Receiving utility bills
Making entries in scroll book
Calculation gross amount and commission
Printable scroll for balancing & record keeping

14. Training Program I. T Department Tasks
Preparation of weekly / monthly affairs
eCIB verification & societies loan statements
Printing editing and sharing online documents
Agri-Credit & Recovery Department Tasks
Filling loan set
Calculation of average sale value
Markup calculation of borrowers
Reminder phone calls to borrowers for installments

15. Financial Statements Statements are available at!

16. Ratio Analysis Ratio Analysis
The Punjab Provincial Co-operative Bank Ltd
Formula: Net profit / (loss) After Tax / Net sale *100
Year 2009
Year 2010
Year 2011
Net Profit
Margin
(979071) / = %
(179626)/ = %
479773/
29.12%

17. Ratio Analysis Ratio Analysis
The Punjab Provincial Co-operative Bank Ltd
Formula:MarkupEarn–MarkupExpense/MarkupEarn
Year 2009
Year 2010
Year 2011
Gross Spread Ratio
/ = %
/ =
37.85 %
/386027 =
76.56%

18. Ratio Analysis Ratio Analysis
The Punjab Provincial Co-operative Bank Ltd
Formula: Non Interest Income/Total Income
Year 2009
Year 2010
Year 2011
Non interest to total income
77394 / =
6.08%
76830 / =
4.71%
73906 /
4.29%

19. Ratio Analysis Ratio Analysis
The Punjab Provincial Co-operative Bank Ltd
Formula: Interest Earned / Interest Expense
Year 2009
Year 2010
Year 2011
Spread Ratio / =
0.75 times
/ =
1.60 times
/ =
4.26 times

20. Ratio Analysis Ratio Analysis
The Punjab Provincial Co-operative Bank Ltd
Formula: (Net profit after tax/total assets) * 100
Year 2009
Year 2010
Year 2011
Return on Asset Ratio
(979071)/ *100
= -7.1%
(179626)
/ *100
= %
/ *100
= 3.34%

21. Ratio Analysis Ratio Analysis
The Punjab Provincial Co-operative Bank Ltd
Formula: Net Income/Sales x Sales/Total Assets x100
Year 2009
Year 2010
Year 2011
DuPont Return on Asset
(979071)/ =
-7.14
(179626)/
-1.17
479773/
3.34

22. Ratio Analysis Ratio Analysis
The Punjab Provincial Co-operative Bank Ltd
Formula: Net profit or loss after tax/total Equity x 100
Year 2009
Year 2010
Year 2011
Return on Equity
(979071)/87361 =
(179626)/ =
-7.79
479773/ =
7.87

23. Ratio Analysis Ratio Analysis
The Punjab Provincial Co-operative Bank Ltd
Formula: (Total Debt / Total Assets)*100
Year 2009
Year 2010
Year 2011
Debt Ratio /
= 0.73% /
= 0.61% /
= 0.32%

24. Ratio Analysis Ratio Analysis
The Punjab Provincial Co-operative Bank Ltd
Formula: Total Liabilities / Shareholders Equity
Year 2009
Year 2010
Year 2011
Debt to Equity Ratio
/ 87361 = %
/ =
4.06%
/ =
0.76%

25. Ratio Analysis Ratio Analysis
The Punjab Provincial Co-operative Bank Ltd
Formula: EBIT / Total Interest
Year 2009
Year 2010
Year 2011
Times Interest Earned
591885/ =
0.37 times
790829/965655
0.81 times
894430/386027
2.31 times

26. Ratio Analysis Ratio Analysis
The Punjab Provincial Co-operative Bank Ltd
Formula: Total Advances/ Total Deposits
Year 2009
Year 2010
Year 2011
Advances/ Deposit Ratio / =
4.45
/ =
1.93 / =
2.46

27. The Punjab Provincial Co-operative Bank Ltd
Ratio Analysis
Ratio Analysis
The Punjab Provincial Co-operative Bank Ltd
Formula:Net cash of Operating activities/CurrentLiabilities
Year 2009
Year 2010
Year 2011
Operating cash flow
(321956)/ =
( )/ =
( )/ =

28. Ratio Analysis Ratio Analysis
The Punjab Provincial Co-operative Bank Ltd
Formula: Net income/ Outstanding No. of Shares
Year 2009
Year 2010
Year 2011
Earning Per Share
( ) / =
( )/
=-41.41 /
=110.53

29. Ratio Analysis
Dividend Per Share: Due the losses in previous some years bank could not paid any dividends to its shareholders.
Price Earning Ratio: data are not available due to unlisted organization.

30. Conclusion! Increase markup revenue and reduce expenses
Increase its non interest income
Inefficient utilization of assets in previous years
Improve return on equity
Improve its debt/equity ratio
PPCBL Improve its liquidity

31. Recommendations! Reduce expenses to better profit margin
Increase its non interest income from commissions etc
Efficiently utilize assets to increase return on assets
Improve ROE so that investors should invest more.
For equity investors PPCBL improve its debt/equity ratio
PPCBL Improve its liquidity by increasing OCF ratio.

32. Thank You! LOGO www.ppcbl.com.pk CELL: +92-333-6204958
FAX:
LOGO