1. MC
MBA
FINANCE

2. Presentation On The Bank Of Punjab

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

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

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

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

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

8. Training Program

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

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

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

12. Ratio Analysis

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

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

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

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

17. Return on Assets= (EBIT / average Total Assets) x 100
Ratio Analysis
BANK OF PUNJAB
Return on Assets= (EBIT / average Total Assets) x 100
Return
on Assets
Year 2009
2010
2011
/ *100
=1.58%
/ *100
=3.81%
/ *100
=5.85%

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

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

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

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

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

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

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

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

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

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

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

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