Internship Report on Bank of Punjab

Full text

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INTERNSHIP REPORT ON

BANK OF PUNJAB

Internship Report submitted to the Faculty of Management & Administrative

Sciences in Partial Fulfillment of the Requirements for the Master of

Business Administration.

Program & Session MBA (4th) H

UNIVERSITY OF GUJRAT

Date of Submission Name of Program Coordinator ___________________

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Dedication

I Dedicate This Work To My

Honorable Parents

Who have been a great source of love,

affection and encouragement throughout my academic career and their matchless sacrifices in the process of my upbringing make me respectful to

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Acknowledgement

Praise be to Almighty Allah, the Most Merciful and Magnificent and to his Holy Prophet Muhammad (Peace Be Upon Him) who is forever a torch of guidance and knowledge for humanity as a whole.

I feel deep sense of gratitude to HASSAN NAWAZ manager of The Bank of Punjab khiali Gate Gujranwala Branch for allowing to me to do my internship and also providing me necessary assistant and guidance. I am also highly grateful to Mr.salman (Agri. Relationship Manager) & Mr. Kamran (OG III) who helped me during my training while performing complex tasks as well as the departmental heads of the bank especially operations related department.

I owe depth of gratitude to my affectionate parents, and other peoples who supported me morally and inspired me to the higher ideas of life.

My gratitude also goes to all those friends who provided me any assistance in what so ever manner in the preparation of this study.

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Executive Summary

I have presented my report into 3 main sections. In the 1st section I have described the introduction, nature and history of BOP. Details of products and services, introduction of all departments and the branch where I did my internship and the task done by me during my training.

In the 2ndsection I’ve made the complete ration analysis, vertical and horizontal analysis and BOP comparison with the industry. In 2008 critical analysis does not provide satisfactory results, the main reason is the loss on revaluation of assets (Hamas Khan Fraud cause).

In the 3rd section I have suggested some recommendations in the light of ratios and SWOT analysis. BOP has negative working capital in all the three years so it is essential to increase current assets and reduce investment in fixed assets. Annexes and reference and sources used are also described in this section.

Since the incorporation the Bank has grown manifold showing remarkable growth in all aspects. Especially, after the current management took over the affairs of the bank in 2007 there has been tremendous growth in all its facets of operations as a result of application of prudent and pragmatic policies with futuristic approach. Owing to its significant performance, profitability, financial standing and market penetration the Bank has attained reputation

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of a responsible corporate citizen playing a pivotal role in economic and social development of the country.

Sound financial footing, improved profitability and competent management are the key factors taken into consideration by PACRA, the credit rating agency, while assigning to the Bank highly credible ratings of AA for long-term and A1 for short-long-term which is the highest rating in this category.

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Table of Content

Title Page

Dedication

Acknowledgement

Executive Summary

AboutBankOFPunja..………... 8

Mission and Vission Statement….………... 9

Punjab Govt Show Faith In The Bank Of Punjab…… 9

CORE VALUE……….……... 9

AWARDS AND ACHIEVEMENT………. 9

PRODUCTS………. 10

Depositsproducts…...……….. 10

BOP Basic BAnk Account……….. 10

BOP Tijarat Account……….. 12

BOP FCA Supreme

Account……… 13

PROFIT AND LOSS SHARING TERMS ACCOUNT.. 15

Product……….. 15

Premature Encashment……….. 16

Miscellaneous……… 17

Corporate premier Term

Account……… 17

General Corporate

Entities……… 17

Munafa Hi Munafa Term

Account……… 17

Bai Missal Term Deposit

Account……….. 18

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PROFIT LOSS SHARING CHEQPNG

ACCOUNTS……… 19

PLS Saving

Account……… 19

Senior Citizens Saving

Account……….. 21

Gharayloo Saving

Account……….. 22

ZaidaMunafa Saving

Account……….. 24

LOANS

PRODUCTS……….

25

Commercial

Finance……….. 25

Against GOVT

Securities……….. 27

Against Hypothecation Of

stocks………. 28

CASH

FINANCE………. 29

CONSUMER

FINANCE……… 30

Asian Loan………

30

Quick

Cash……… 34

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Car Loan………

37

AGRICULTURE

CREDIT………. 41

AGRICULTURE

LOANS………. 42

Kisan dost scheme……….

43

Agriculture Schemes Markup………

44

Scheme for Controlled Shed……….

46

Agriculture Finance Scheme………

48

Model Dairy Farms………

49

TRADE PROCESSING CENTERS……….. 53

COMMERCIAL BANKINGS………..

54

CORPORATE AND INVESTMENT BANK….

54

CASH MANGEMENT SERVICE……….. 56

UTILITY BILLS……….. 56

LOCKER FACILITIES……….. 56

ATM LOCATIONS……….. 57

1 LINK NETWORKS……….. 57

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SWOT ANALYSIS……… 59

CONCLUSION………

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Reference and Sources Used……….. 66

About Bank of punjab

Established in 1989, in pursuance of The Bank of Punjab Act 1989 and was given the status of scheduled bank in 1994. The Bank of Punjab is working as a scheduled commercial bank with its network of 273 branches at all major business centers in the country. The Bank provides all types of banking services such as Deposit in Local Currency, Client Deposit in Foreign Currency, Remittances, Advances to Business, Trade, Industry and Agriculture A wholly owned subsidiary of BOP First Punjab

Modaraba (FPM) was established in 1992 and is being managed by Punjab Modaraba Services (Pvt) Ltd.( 272 branches )

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Vision statement

To be a customer focused bank with service excellence"

Mission statement

To exceed the expectations of our stakeholders by leveraging our relationship with the Government of Punjab and delivering a complete range of professional solutions with a focus on programmed driven products & services in the Agriculture and Middle Tier Markets through a motivated team.

Punjab Government Shows Faith in Bank of Punjab

Punjab Government wishes to state that being the major stake holder in the Bank of Punjab it has full faith in the new management and operations of the Bank. The

government further pledges its unequivocal support to the Bank and firmly believes that the affairs of the Bank are sound and its financial health robust. (Finance Department)

Core Values

Our Customer As our first priority

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improve and succeed.

Corporate Social Responsibility To Enrich the Lives of community where we operate. Recognition and Reward For the talented and high performing employees.

Excellence In every thing we do. Integrity In all our dealings

Respect For our customers and each other.

Awards & Achievements

Excellence Award by the Central Board of Revenue

The Central Board of Revenue presented "Excellence Award" to the Bank of Punjab in recognition of the contribution made by the bank towards Government exchequer.

3rd Kissan Time Awards

In recognition of Bank's contribution in development and growth of agricultural sector, the Bank honoured with "Top Bank for Agriculture Loans" and "Best Bank Crop Insurance" under 3rd Kissan Time Awards year 2006.

Best Corporate Report Award

Annual Report of the Bank for the year 2005 won 5th position for "The Best Corporate Report Award" for the financial sector, adjudicated jointly by the Institute of Chartered Accountants of Pakistan and the Institute of Cost and Management Accountants of Pakistan.

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16th Bolan Excellence Award

The Bank was awarded Best Bank Award under 15th Bolan Excellence Awards distributed in 2006.

Achievement Award

The Lahore Chamber of Commerce & Industry (LCCI) awarded the Bank "LCCI Achievement Award" 2006.

Products

Deposit Products: Current Accounts

The Accounts shall be opened upon submission of duly filled-in Bank’s prescribed Account Opening Form properly introduced in the manner provided and on submitting all such documents as may be revised by the Bank. The Bank reserves the right to demand such relevant documents even after opening of account as deemed necessary.

The Accounts shall be opened with an initial/minimum deposit as stipulated by the Bank from time to time unless specifically exempted.

The Accounts may be opened singly in one name or jointly in two or more names.

A distinctive number shall be allotted to every account and this number should be quoted in all correspondence relating to the account and at the time of making a deposit or withdrawal. The Bank reserves the right to change the Account Number or any part of

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it in order to meet its book keeping/administration requirement. However, intimation of change in the account number shall be sent to the account holder.

Account for the recipient of Zakat or recipient of grants from Bait-ul-Mall, maybe opened with an initial deposit of

Rs.100/-Deposit may be accepted from minors provided the account is opened and operated through a guardian. The Account thus opened will continue to be operated upon by the guardian even if the minor attains the age of majority. The necessary consent to this effect will be obtained at the time of opening of the account. The orders of the court will, however, are followed in case the guardian is appointed by the court.

All monies/instruments to be deposited in an account should be accompanied by pay-in-slip showing the title and number of the account. The entry of transaction shall be authenticated by putting Bank’s stamp under the joint signatures of two officers of the Bank on the pay-in-slip and counterfoil thereof. However in case of branches where teller system has been introduced, teller only shell authenticate the transactions up to the prescribed limits.

Withdrawals are not allowed against postdated (payable on any future date) and stale (06 months after issuance date) Cheques and against un-cleared funds.

Where any account is not conducted to the satisfaction of the Bank, the account may be closed without any notice and the balance will be remitted to the depositor at the address given by the Account Holder(s).

The Bank has the right to refuse to open an Account without assigning any reason. For New Customer

All CD accounts which are not operated upon by the account holders for a period of one year will be classified as dormant. After passing one year in the dormant status, that is, no operation in the account for a continuous period of two years, the account shall be

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classified as inoperative. This entails certain restrictions on the operation of such accounts, for reactivation, the account holder must in person request for a change of status and will produce original CNIC or Passport or Pakistan Origin Card (POC) or National Identity Card for Overseas Pakistani (NICOP) with photo copy for Branch / Bank attestation. After passing further 8 years in inoperative status,i.e., if a CD account is not operated upon by a customer for a continues period of ten years, it will be classified as unclaimed deposit account and will be surrendered to SBP as per the provisions (section 31) of Banking Companies Ordinance 1962

For Existing Account Holders

The period of conversion of a normal CD account to dormant has been enhanced from 06 months to one year, since last opertaion in the account, with effect from January 2008.

The branches shall ensure completion of all the formalities required by State Bank of Pakistan vide Prudential Regulation No.M-1with regard to KNOW YOUR CUSTOMER. \

BOP Basic Banking Account

The minimum initial deposit will be Rs.1000. No profit will be Payable.

No fee (service charges) for maintaining such accounts will be charged.

There will be no limit for maintain minimum balance. In the cases, there balance in BBA’s remaining "NIL" for a continuous 6 month period, such accounts will be closed. Account holder will be allowed a maximum of 2 deposit transactions and 2 chequing withdrawals, free of charge either through cash/through clearing per month otherwise service charges of a regular banking account shall be applicable for that month as per Bank's Schedule of Charges.

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Unlimited free of charge ATM withdrawals from Bank's own ATM's will be allowed. In case of withdrawals from BBA through the ATM Machine of other Banks, the Charges of these Banks shall be applicable for such transactions.

Note

If any existing customer desire to get his regular banking account converted into Basic Banking Account, he / she may kindly contact the branch where his / her account is being maintained. The facility for conversion into BBA will be provided free of charge

BOP TIJARAT ACCOUNT (LCY) :

INCENTIVE MINIMUM MONTHLY AVERAGE BALANCE FROM RS. 50,000 OVER

Inter-city/within-city On-line

deposit/withdrawal Rs.5/- flat

Issuance of ATM/Debit Card Free Renewal of ATM/Debit Card Free

Issuance of Cheque Book Free – No limit Issuance of Duplicate A/c Statement Free – No limit Rental Charges for Lockers

(small/medium)

Free - Locker of your choice subject to availability

Key deposit for lockers Free

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DD Cancellation Charges Free – No limit

Courier Charges Free- No limit

Commission in Outward Bills for Collection charges

Free - on equal to thrice of last month’s average balance and above this amount as per SOC (commission @ 0.15%)

Cheque return charges for cheques presented in clearing as collecting banker.

Free

Call Deposit Receipt Free

N.B 1) the rent free locker facility will be allowed on availability of locker and after maintaining average balance for six months.

2) In order to further facilitate the managers in targeting customers, it will be at the discretion of the manager to offer the incentive package from day one. However it will be the responsibility of the branch to ensure that customer completes the criteria as per above table otherwise recover the charges waived

3) The incentive package will be reviewed on the basis of deposit procured vis-à-vis cost/benefit and it can be revised downward.

BOP FCY SUPREME CURRENT ACCOUNT:

Foreign Currency Accounts can be opened in four currencies namely US Dollar, UK Pond Sterling, Yen and Euro at any of the authorized branch

INCENTIVE PACKAGE FOR BOP FCY SUPREME CURRENT A/Cs

INCENTIVE MINIMUM BALANCE $ 10, 000 OR EURO 8,000 OR U.K. POUND 7,000

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Renewal of ATM/Debit Card for Pak Rs. A/c Allowed

Issuance of Cheque Book One per month

Issuance of Duplicate A/c Statement 1 per month

Lockers (small / medium) * 01 Allowed with same title (at any branch of Bop)

Outward Bills for Collection CD account in PKR, with same title Free Cancellation of DD/PO/MT/TT/CDR in

PKR CD account in PKR, with same title

No Cheque Return Charges - for cheques

presented in clearing as collecting banker CD account in PKR, with same title No key deposit for lockers For Free Locker, mentioned above Free Issuance of DD/ PO/ MT/ TT/ CDR in

PKR Rs. 5/- flat per transaction

On – Line Transactions from PKR account

(Intercity / Within City – Deposit / Withdrawal) Rs. 5/- flat per transaction

N.B.

1. The rent free locker facility will be allowed on availability of locker and after maintaining average balance for six months.

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2. In order to further facilitate the managers in targeting customers, it will be at the discretion of the manager to offer the incentive package from day one. However it will be the responsibility of the branch to ensure that customer completes the criteria as per above table otherwise recover the charges waived.

3. The incentive package will be reviewed on quarterly basis. The Bank reserves the right to change, modify the package.

Profit Loss Sharing Term Accounts

BOP PEHLAY MUNAFA SCHEME:

PRODUCT

This is a Fixed Deposit product with free ATM/Debit Card. The tenure will be 3, 6, 12, 15 and 18 months.

WHO CAN INVEST

The product is available for all types of customers who are eligible to invest in term deposit as per Bank’s criteria. The term account can be opened singly or jointly. Benevolent/Charitable Funds, Trusts, Cooperative Societies, Clubs etc can also invest. AMOUNT OF DEPOSIT

 Minimum deposit is

Rs.50,000/- While No Maximum deposit limit

BOP PAHLAY MUNAFA DEPOSIT SCHEME (Profit in Advance) The detail of profit rates are as follows

TERM PROVISIONAL PROFIT TO BE PAID

IN ADVANCE (WHT

* PROVISIONAL PROFIT RATE P.A. (ANNUALIZED RATE MULTIPLIER FACTOR EFFECTIVE RATE OF EXPECTED

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TO BE DEDUCTED) OF EXPECTED RETURN) RETURN 03 months Rs. 2,500 10.00 % 0.025 10.25 % 06 months Rs. 5,000 10.00 % 0.050 10.53 % 12 months Rs. 10,350 10.35 % 0.1035 11.54 % 15 months Rs. 12,800 10.24 % 0.128 11.74 % 18 months Rs. 14,000 9.333 % 0.140 10.85 % 

 * This product is governed under PLS rule of Profit & Loss sharing system. The rates mentioned are expected and the Bank reserves the right to review/revise the profit rates half yearly and terms & conditions of profit and scheme

 The provisional profit will be paid in advance i.e. at the time of investment.

 Zakat will be deducted as per law, wherever applicable.

 With holding tax will be deducted as per law.

The above expected rates are effective from 08-06-2010 for all fresh deposit procured/accounts opened under the BOP PahlayMunafa Scheme. These rates will not be applicable to deposits already booked in these schemes till the time they are matured.

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PREMATURE ENCASHMENT:

The profit shall be paid on prevalent normal term deposit rates. Rules governing normal PLS Term Deposit shall apply i.e. In case of pre-mature encashment, corresponding rate applicable to the period of retention then declared by the Bank will be paid, provided deposit is kept for a period not less than 7 days. The difference amount will be recovered from the principal amount.

With-holding Tax deducted in advance and paid to Tax Authorities shall not be refunded at the time of pre-mature encashment. However Advance Tax Deduction Certificate will be issued to the customer for claiming refund from the Tax Authorities.

MISCELLANEOUS

The provisional profit will be paid in advance i.e. at the time of investment. The provisional profit will be credited into customers PLS/CD account.

For further details, please contact your nearest Branch

CORPORATE PREMIER TERM ACCOUNT

His account has been introduced for corporate clients. This is a non operating/chequing account. Minimum amount of investment is Rs.500 (M). The deduction of Zakat and Withholding tax will be applicable as per law of the land.

Profit payable at maturity

GENERAL CORPORATE ENTITIES

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03 Month 5.50%

06 Month 5.75%

01 Year 6.00%

05 Years &

Above 6.50%

MUNAFA HI MUNAFA TERM ACCOUNT - III

The product is available for all types of customers who are eligible to invest in term deposit as per Bank's criteria. The term account can be opened singly or jointly.

TERM *EXPECTED PROFIT RATES P.A.

MINIMUM AMOUNT OF DEPOSIT RS

PROFIT PAYMENT ON MONTHLY BASIS (WITH HOLDING TAX TO BE DEDUCTED) 1 month 7.00 % 100,000/- Rs.583 3 months 8.75 % 100,000/- Rs.729 6 months 9.25 % 100,000/- Rs.771 1 year 11.40 % 100,000/- Rs.950 2 year 11.60 % 100,000/- Rs.967

• This product is governed under PLS rules i.e. the rates mentioned are provisional and the Bank reserves the right to revise/revisit the profit rates under Profit & Loss sharing system and terms & conditions of scheme.

• The above expected rates are effective from 26-04-2010 for all fresh deposit procured/accounts opened under the Munafa-Hi-Munafa Scheme III. These rates will

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not be applicable to deposits already booked in these schemes till the time they are matured.

* Please note the rates will be reviewed on monthly basis. Main terms & conditions are as follows:

 Minimum deposit is

RS.100,000/- No Maximum deposit limit

 The profit will be paid on monthly basis

 Withholding Tax and Zakat will be deducted as per law, wherever applicable * All other terms & conditions circulated earlier will remain the same

BAI MISAAL TERM DEPOSIT ACCOUNT

The product is available for all types of customers who are eligible to invest in term deposit as per Bank's criteria. The term account can be opened singly or jointly.

TERM *EXPECTED PROFIT RATES P.A. MINIMUM AMOUNT OF DEPOSIT RS PROFIT TO BE PAID ON MATURITY (WHT TO BE DEDUCTED) TOTAL AMOUNT TO BE PAID ON MATURITY (WHT TO BE DEDUCTED) 1 year 12.00 % 100,000/- Rs. 12,000 Rs. 112,000 2 year 12.25 % 100,000/- Rs. 24,500 Rs. 124,500

 This product is governed under PLS rules i.e. the rates mentioned are provisional and the Bank reserves the right to revise/revisit the profit rates under Profit & Loss sharing system and terms & conditions of scheme.

The above expected rates are effective from 26-04-2010 for all fresh deposit procured/accounts opened under the BaiMisaal Term Deposit Scheme. These rates will not be applicable to deposits already booked in these schemes till the time they are matured.

 Please note the rates will be reviewed on monthly basis. Main terms & conditions are as follows:

 Minimum deposit is RS.100,000/- No Maximum deposit limit

 The profit will be paid on maturity along with principal amount

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Rules governing normal PLS Term Deposit shall apply i.e. In case of pre-mature encashment, corresponding rate applicable to the period of retention then declared by the Bank will be paid, provided deposit is kept for a period not less than 7 days. Please note profit shall be paid on prevalent normal term deposit rates.

All other terms & conditions circulated earlier will remain the same.

Profit Loss Sharing Chequing Accounts PLS SAVING ACCOUNT

The Accounts shall be opened upon submission of duly filled-in Bank’s prescribed Account Opening Form properly introduced in the manner provided and on submitting all such documents as may be revised by the Bank. The Bank reserves the right to demand such relevant documents even after opening of account as deemed necessary The Accounts shall be opened with an initial/minimum deposit as stipulated by the Bank from time to time unless specifically exempted.\

The Accounts may be opened singly in one name or jointly in two or more names.

A distinctive number shall be allotted to every account and this number should be quoted in all correspondence relating to the account and at the time of making a deposit or withdrawal. The Bank reserves the right to change the Account Number or any part of it in order to meet its book keeping/administration requirement. However, intimation of change in the account number shall be sent to the account holder.

Account for the recipient of Zakat or recipient of grants from Bait-ul-Mall, maybe opened with an initial deposit of

Rs.100/-Deposit may be accepted from minors provided the account is opened and operated through a guardian. The Account thus opened will continue to be operated upon by the guardian even if the minor attains the age of majority. The necessary consent to this

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effect will be obtained at the time of opening of the account. The orders of the court will, however, are followed in case the guardian is appointed by the court.

All monies/instruments to be deposited in an account should be accompanied by pay-in-slip showing the title and number of the account. The entry of transaction shall be authenticated by putting Bank’s stamp under the joint signatures of two officers of the Bank on the pay-in-slip and counterfoil thereof. However in case of branches where teller system has been introduced, teller only shell authenticate the transactions up to the prescribed limits.

Withdrawals will not be allowed against postdated (payable on any future date) and stale (06 months after issuance date) Cheques and against un-cleared funds.

Where any account is not conducted to the satisfaction of the Bank, the account may be closed without any notice and the balance will be remitted to the depositor at the address given by the Account Holder(s).

PLS Savings Accounts may also be opened by charitable institutions, for Provident Funds and other funds of benevolent nature by Local Bodies, Autonomous Corporations, Companies, Associations, Societies, Educational Institutions, Firms etc. and in all other cases where such accounts are required to be opened under the orders of Competent Court of Law

Not more than one PLS Savings Account may be opened at a branch in any one name except in the name of a parent or guardian for more than one child or for keeping funds of specified nature category by an entity, with the Bank’s prior approval.

Profit payable or Loss recoverable on PLS Saving Accounts to be credited or debited will be determined by the Bank at its sole discretion on the basis of its net working results at the end of each half-year within the time prescribed by SBP from the date of the close of the half-yearly books of accounts of the Bank. The rates of profits may vary

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from period to period via January to June/July to December each year. Calculation of Profit on PLS Saving Accounts will be made for each calendar month on the lowest credit balance of an account between the close of the 6th day and the last day of the month. However, profit accrued even for Re. 1/- after deducting withholding tax will be payable to all Account Holders. When an account is CLOSED before declaration of profit rates, the accrued profit will be first credited in the account at the profit rates previously declared by the Bank. However, no recovery or payment of profit as a result of increase/decrease in the rate of profit will be affected upon such A/C holders after announcement of half-yearly profit rates by the Bank.

The Bank has the right to refuse to open an Account without assigning any reason. Withholding Tax at the rate notified by the Government of Pakistan from time to time will be deducted out of profits payable to the Account Holders.

ZAKAT is leviable on the assets as described in the Zakat &Ushr Ordinance 1980 (as amended from time to time) on balances which will fall within the definition of zakatable assets as notified by the Government of Pakistan on valuation date each year, provided Declaration (original/attested photocopy) for exemption from compulsory deduction of zakat is filed on the prescribed proforma (CZ-50) in the prescribed manner one month preceding the valuation date except in the case of newly opened accounts.

The branches shall ensure completion of all the formalities required by State Bank of Pakistan vide Prudential Regulation No.M-1with regard to KNOW YOUR CUSTOMER,

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This is a saving bank product available for all senior citizens i.e. persons of 60 years and above who are eligible to open a saving account as per our Bank’s criteria. The account can be opened singly or preferably jointly (husband & wife) provided either of them is of 60 years or above. This product is designed to attract procure deposit/savings of senior citizens by offering attractive, innovative incentives and higher rate of profit to senior citizens.

The Main Features are:

A customer can open only one BOP Senior Citizens Saving Account singly or jointly regardless of the branch. In case it is found out that more than one account exists under this category, the Bank reserves the right to recover & forfeit the profits paid or not to give any profit. The account can be opened with a minimum initial deposit of Rs.10, 000/-. However in case average deposit during the month falls below Rs.10, 000/-, account maintaining charges shall be levied as per Bank’s Schedule of Charges.

The profit slab is as follows:

Minimum Monthly Balance * Expected rate of profit

Rs. 0 up to 200,000/- Normal PLS SB rate

Rs.200,001 up to 400,000/- 5 7 % p.a.

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Over Rs. 500,000/- 5 % p.a.

*This product is governed under PLS rule of Profit & Loss sharing system. The rates mentioned are expected and the Bank reserves the right to review/revise the profit rates quarterly.

Maximum profit @ 8.0 % p.a. as per different slabs shall be paid on minimum monthly deposit up toRs.500; 000/-Deposit can exceed Rs.500, 000/- however will be paid at normal PLS-SB-Account rate on amount over and above Rs.500, 000.

The profit will be calculated on monthly basis based on the minimum monthly balance maintained by the customer during that particular month.

The profit will be credited on monthly basis in the respective account. Profit once disbursed will not be recovered in case of decrease in rate at the time of announcement of Half Yearly profit rates. However in case of rise in profit rate the difference amount will be paid.

Existing senior citizen account holders can also open account under this scheme.

Withholding tax will be deducted from the profit as per law in force Preferably PLS SB joint a/c should be opened with special instructions of “Either or Survivor” which must be jointly authenticated under full signatures of the Joint A/c holders.

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Unlimited transaction (debit/credit) Free complimentary issuance of first ATM/Debit Card Free complimentary issuance of first Cheque Book of 25 leaves 25 % reduction in rental charges of small or medium locker subject to availability.

Priority banking especially in utility bills payment, counter service etc

The product carries all characteristics/conditions pertaining to PLS SB account i.e. issuance of DD/TT/MT/PO etc as per Bank’s Schedule of Charges except payment of profit which shall be paid on monthly basis on minimum monthly deposit as per admissible rates shown against each minimum monthly balance.

GHARAYLOO SAVING ACCOUNT:

This is a saving bank product available for all females who are eligible to open a saving account as per our Bank’s criteria. The account can be opened singly or jointly with husband. This product is designed to attract procure deposit/savings of ladies particularly housewives of expatriates & students.

The Main Features are:

A female can open only one BOP Gharayloo Saving Account singly or jointly regardless of the branch. In case it is found out that more than one account exists under this category, the Bank reserves the right to recover & forfeit the profits paid or not to give any profit. The account can be opened with a minimum initial deposit of Rs.10, 000/-.

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However in case average deposit during the month falls below Rs.10, 000/-, account maintaining charges shall be levied as per Bank’s Schedule of Charges

The profit slab is as follows:

MINIMUM MONTHLY BALANCE * EXPECTED RATE OF PROFIT

Rs. 0 up to 10,000/- Normal PLS SB declared rate

Rs. 10,001 up to 250,000/- 7.25 % p.a.

Over Rs.250,000/- Normal PLS SB declared rate

*This product is governed under PLS rule of Profit & Loss sharing system. The rates mentioned are expected and the Bank reserves the right to review/revise the profit rates quarterly.

Maximum profit @ 7.25 % p.la.Shall be paid on minimum monthly deposit up to Rs.250, 000/- but over Rs.10, 000/-. Deposit can exceed Rs.250, 000/- however, profit will be paid at normal PLS-SB-Account rate on balance over and above Rs.250, 000.

The profit will be calculated on monthly basis based on the minimum monthly balance maintained by the customer during that particular month.

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The profit will be credited on monthly basis in the respective account. Profit once disbursed will not be recovered in case of decrease in rate at the time of announcement of Half Yearly profit rates. However in case of rise in profit rate the difference amount will be paid.

Withholding tax will be deducted from the profit as per law in force. Preferably PLS SB joint a/c should be opened with special instructions of “Either or Survivor” which must be jointly authenticated under full signatures of the Joint A/c holders.

Unlimited transaction (debit/credit) Free complimentary issuance of first ATM/Debit Card 25 % reduction in rental charges of small or medium locker subject to availability Priority banking especially in utility bills payment, counter service etc.

The product carries all characteristics/conditions pertaining to PLS SB account i.e. issuance of DD/TT/MT/PO etc as per Bank’s Schedule of Charges except payment of profit which shall be paid on monthly basis on minimum monthly deposit as per admissible rates shown against each minimum monthly balance.

ZIADA MUNAFA SAVING ACCOUNT

This is a saving bank product available for general public i.e. persons who are eligible to open a saving account as per our Bank’s criteria. The account can be opened singly or jointly. This product is designed to attract procure deposit/savings of general public particularly salaried and small investors.

A customer can open only one BOP ZiadaMunafa Saving Account singly or jointly regardless of the branch. In case it is found out that more than one account exists under this category, the Bank reserves the right to recover & forfeit the profits paid or not to give any profit. The account can be opened with a minimum initial deposit of Rs.10, 000/-. However in case average deposit during the month falls below Rs.10, 000/-, account maintaining charges shall be levied as per Bank’s Schedule of Charges.

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MINIMUM MONTHLY BALANCE * EXPECTED RATE OF PROFIT

Rs. 0 up to 400,000/- Normal PLS SB rate Rs.400,000 up to 500,000/- 7.5 % p.a.

Over Rs.500,000 Normal PLS SB rate

*This product is governed under PLS rule of Profit & Loss sharing system. The rates mentioned are expected and the Bank reserves the right to review/revise the profit rates quarterly.

Maximum profit @ 7.5 % p.a. as per different slabs shall be paid on minimum monthly deposit up to Rs.500, 000/-Deposit can exceed Rs.500, 000/- however, profit will be paid at normal PLS-SB-Account rate on amount over and above Rs.500, 000.

The profit will be calculated on monthly basis based on the minimum monthly balance maintained by the customer during that particular month. The profit will be credited on half yearly basis in the respective account as per rules of PLS SB.

Withholding tax will be deducted from the profit as per law in force. Preferably PLS SB joint a/c should be opened with special instructions of “Either or Survivor” which must be jointly authenticated under full signatures of the Joint A/c holders. Unlimited transaction (debit/credit) free complimentary issuance of first ATM/Debit Card

The product carries all characteristics/conditions pertaining to PLS SB account including payment of profit on half yearly basis i.e. issuance of DD/TT/MT/PO etc as per Bank’s Schedule of Charges on minimum monthly deposit as per admissible rates shown against each minimum monthly balance.

Loan Products

COMMERCIAL FINANCE:

 Against Pledge of Shares  Against Government Securities

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 Against Hypothecation of Stocks

Against Pledge of Shares

His facility is generally extended to companies or individuals on selective basis against pledge of tangible securities such as Shares. Such financing is supportive to secondary Capital Market concept. The facility is required to be adjusted periodically or within the period as specified in the Sanction Advice/DAC. Given that Stock Market in Pakistan is volatile, banks are required to refrain from extending loans to the market players who are engaged in speculations for short term “Gains”, which quite often they fail to make, consequently rendering the facility to non-performing ultimately.

POLICY

Advances against shares shall not be allowed to:

 Take exposure against the security of shares/TFCs issued by them.

 Provide unsecured credit to finance subscription towards floatation of share capital and issue of TFCs.

 Take exposure against the non listed TFCs or the shares of companies not listed on the Stock Exchange(s).

 Take exposure on any limited company against the shares/TFCs of that company or its group companies.

 Take exposure against sponsor director’s shares (issued in their own name or in the name of their family members) of banks/DFIs.

 Take exposure on any one person (whether singly or together with other family members or companies owned and controlled by him or his family members)

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against shares of any commercial bank/DFI in excess of 5% of paid up capital of the share issuing bank/DFI.

 Take exposure against the shares/TFCs of listed companies that are not members of the Central Depository System.

 Take exposure against unsecured TFCs or non rated TFCs or TFCs rated below ‘BBB’ or equivalent.

 Unless otherwise adequately secured by other acceptable collaterals, Advance to finance “Subscription”, towards floatation of “Share Capital” of public limited company, is not allowed, under Credit Policy.

 Advances approved shall be within “Per Party Limit” (i.e, 30% of un-impaired equity of Bank for fund based and non fund based subject to condition that the maximum outstanding against fund based exposure doest not exceed 20% of Bank’s equity) and supported by positive CIB/DFIs confidential reports.

 Loans exceeding Rs. 500,000/- (Total Accommodation) shall not be more than 10 times of Borrowers’ Equity i.e. Capital and Reserves minus losses and 04 times in case of fund based facility, as disclosed in their balance sheets.

 Financing shall be allowed against shares registered in the name of “Borrower”, however in case the shares tendered for pledge are registered in the name of a “Third Party”, the letter of lien shall be signed by the Third Party and not by the Borrowers.

 Advances Department Head or RCAD shall conduct a monthly review of

financing against shares and exercise vigilance over: - Market Rates of pledged shares. Their marketability. Dividend/Bonus declarations etc

Minimum Margin Requirements

1. Exposure against Shares of Listed Companies shall be subject to minimum margin of 30% of their current market value as per prevalent Prudential Regulations, which may at the discretion of the Bank be set higher. However, in terms of the Prudential Regulations the Bank shall monitor the margin on at least weekly basis and shall take appropriate

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action for top-up and sell out, on the basis of approved Credit Policy and prior written authority from the borrower.

AGAINST GOVERNMENT SECURITIES:

Government Securities include Defense Saving Certificates (DSCs), Special Saving Certificates (SSCs), Regular Income Certificates (RICs), and Behbood Certificates, US Dollar Bonds & NIT Units etc, issued by National Saving Centre Government of Pakistan/National Investment Trust.

Large amount of funds representing “Provident Fund”, Benevolent Fund collections are invested in the Government Securities, which are yielding better return compared to placements with Commercial Banks. Banks also extend credit facilities against pledge of “Deposit Certificates” or other instruments of value issued in the name of Individuals, Joint Holders Public Bodies, and Firms, issued by various Government regulated Investment/Saving Organizations, which at the moment are restricted to Maximum of Rupees One Million and are subject to change.

1)

POLICY

a. All Credit Financing against pledge of Securities require Credit Limit approved by Credit Committee, even if 100% covered by cash or collateral.

b. Documents complete in all respect duly vetted by Bank’s legal counsel signature verified shall be obtained ensuring their validity in a “Court of Law”. Signatures shall be verified in pencil on each document.

AGAINST HYPOTHECATION OF STOCKS:

Industrial organizations have to invest a large sum of money to build stocks of raw material to up keep their manufacturing line. This is apt to create liquidity constraints in

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the Financial Balance Sheet of the customer. To manage such financial gaps/shortfall in their cash flow they usually resort to borrowings from Banks against Hypothecation of raw material/semi or finished goods held by them in their stocks. Banks in such cases although do not have a physical custody of the goods, however have a legal Charge/Lien established, thereon, providing a legal recourse to the Bank to take custody of the stocks, in the event the borrowers default to repay the loan or fail to meet their obligations, as agreed.

Criteria to merit this facility is provided in the Banks Credit Policy Manual, which is care fully assessed by Risk Managers, while recommending a credit proposal to credit committee. Some of the basic requirements are as follows which are included for general understanding of the Processing Officers at Branches/CAD:- It shall be ensured that the borrowers have absolute title to the goods and the same are not encumbered or previously hypothecated to any other Bank.

Formal charge (First/Second/PariPassu) is created in the name of the Bank. Goods offered are not perishable, or have short expiry period and do not warrant special storing. Stocks offered for hypothecation are easily marketable and its price is not highly fluctuating, otherwise the Bank retains higher margin. Stocks under hypothecation are not restricted by SBP/Government as a policy to maintain market supply.

POLICY

Advances against hypothecation of goods is subject to the policies as applicable to other loans, and as spelled out in the Credit Policy Manual with the exceptions given

below:- Stock reports, duly signed by borrowers, are received periodically at a frequency as spelled out in the DAC/Credit Proposal etc.

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 Limits are adjusted by CAD in the system in accordance with the Drawing Power worked out each time a stock reports is received and value of stocks reassessed by applying latest Pricing Index.

 Negative Variance between the net value of stocks (i.e, market value less

margin) and the outstanding advance shall be reported to the relationship/Risk Manger, who shall advise the borrowers to cover the shortfall by additional stocks or adjust the facility accordingly.

Cash Finance

This facility is generally provided against pledge of goods. Under this type of financial accommodation the facility amount is disbursed in specially opened account for the purpose. The pledged goods are released to the borrower against cash payment only. In case the goods pledged are seasonal in nature, the customer would be required to adjust the facility before the season ends. Rollover shall not be allowed.

POLICY:-Basic criteria to qualify for advances against pledge of goods are as

follows:-Facility is disbursed in specially opened CF A/C for the purpose It shall be ensured that Goods tendered for pledge

are:- Free from credit restrictions imposed by State Bank of Pakistan Not perishable, do not require special Storing arrangements / conditions and have short expiry period.

 Easily marketable and their price is not highly fluctuating.

 If so higher margins shall have to be approved & retained Where variation in pricing is observed during periodic evaluation, the customer shall be advised to make good the shortfall in the drawing power.

 Where variation in pricing is observed during periodic evaluation, the customer shall be advised to make good the shortfall in the D.P.

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Consumer FinanceAasaish Loan

Quick cashCar LoanHouse Loan

Smart Cash Personal Loan

BOP Aasaish Loan

Particulars Bank’s Policy

About Scheme

"BOP Aasaish Loan is personal loan facility for bank’s target market for the purchase of Consumer durable goods for their personal use,

repayable on easy instalments"

Features

Target

Market

Salaried Individuals (SI)

 Self Employed Professionals (SEP)

 Self Employed Businessmen (SEB)

Brands/ Products

All renowned brands including PEL, LG, Sony, Samsung etc. for all products like Refrigerator, TV, Microwave Oven, AC, Washing machine

etc.

Down

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Tenure / Loan Amount /

Mark-up Rate

Tenure Mark-up Rate

(Reducing balance method)

6 months 0% 9 Months 8% p.a 12 Months 11%p.a. 18 Months 15%p.a. 24 Months 18%p.a. Charges Details Processing Charges = Rs. 500/- per case E-CIB Charges

= Rs.125/- per case UptoRs. 100,000/- Rs.200/- per case over Rs.

100,000/-Documentation Charges = Actual

Debt Burden

The monthly payments of all loans/lease/limits from all FIs/banks should not exceed 50% of Take Home Salary / Net Income.

Pre-Payment Penalty No Penalty Late Payment

3% on the amount of instalment per day for the days the amount remains overdue Max. Rs. 500/- + ChequeDishonouring Charges (as

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Penalty per schedule of charges of the bank)

Eligibility Criteria

Eligibility Criteria for Govt. /Armed Forces/BOP Employees

 Age between 21 and 59 Years or retirement date; whichever is earlier (59 Years at maturity of facility)

 Minimum Take Home Salary is

Rs.7,000/- Permanent Employee with Minimum 01 Year of job Experience.

 Contractual Employees are also eligible but loan should be adjusted before 03-months of the expiry of contract. Moreover, departmental undertaking / one Personal Guarantee of equivalent or

senior grade shall be obtained for contractual employees (Financial commitment of Guarantor should be established through E-CIB report

& Salary Slip or Employer Certificate or Bank Statement of salary account showing monthly credits of salary amount).

 Maintaining Salary Account in any bank.

 Have valid CNIC

Eligibility Criteria for Private Employees

 Age between 24 and 59 Years or retirement date; whichever is earlier (59 Years at maturity of facility)

 Minimum Take Home Salary is Rs.

10,000/- Permanent Pvt. Employee with Minimum 02 Years of job Experience including 01 year with current employer.

 Maintaining Salary Account with any bank.

 Have valid CNIC

Eligibility Criteria for SEP/SEB

 Age between 25 and 57 Years or retirement date; whichever is earlier (57 Years at maturity of facility)

 Minimum 02 Years in current business.

 Minimum Monthly Net Income is Rs.15,000/- (Established through Tax Return or Financial Statements or Bank Statement).

 Have valid CNIC

 Residing or working in launching cities.

Documents Required

For Govt. /Armed Forces/BOP Employees

 Copy of valid CNIC

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provided by employer)

 Employer Certificate on organization’s letter head (as per BOP specimen) –

 Bank Statement for last 06 months (where salary is being transferred).

 Latest Copy of utility bills (Electricity & phone) (of present living address).

For Private Employees

 Copy of valid CNIC

 Two Recent Photographs

 Latest Salary Slip (Employer Certificate, if salary slip is not provided by employer)

 Employer Certificate on organization’s letter head (as per BOP specimen)

 Bank Statement for last 06 months (where salary is being transferred).

 Latest Copy of utility bills (Electricity & phone) (of present living address)

 Income Tax Return/Wealth Statement OR Non-Tax Payees Form, if applicant is a non-tax payer – In case of non-tax payee, one personal guarantee is required. one Personal Guarantee of equivalent or senior grade shall be obtained for contractual employees (Financial commitment of Guarantor should be established through E-CIB report

& Salary Slip or Employer Certificate or Bank Statement of salary account showing monthly credits of salary amount)

For self employed business professional

 Copy of valid CNIC

 Two Recent Photographs

 Bank Statement for last 06 months of Business Accounts

 Latest Copy of utility bills (Electricity & phone) of Residence

 Income Tax Return/Wealth Statement OR Non-Tax Payees Form, if applicant is a non-tax payer. In case of non-tax payee, one

personal guarantee is required.

Business related documents.

 Latest copy of utility bills (Electricity & phone) of current business address.

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 Documentary evidence in business or in the profession for the last 2 years.

 Proprietorship Certificate/Partnership deed

 Copy of Professional Degree (For Professionals)

Security Post Dated Cheques

 Life Insurance of Borrower.

 Three (03) undated cheques of marked up amount (Principal + Mark-up)

 Any additional guarantee, if required as per the contents of the approval letter.

Quick Cash

Particulars Bank’s Policy About

Scheme “BOP Quick Cash is personal running finance facility for Salaried Class for meeting their day to day personal needs”

Features Target

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Finance

Amount Minimum amount Maximum amount

Rs.50,000/-

Rs.500,000/-Tenure The facility is available for 1 year .However, It is renewable subject to satisfactory Conduct of account, status/request of the borrower and banks usual terms & condition.

Mark-up

Rate Tenure Mark-up Rate Change of Mark-upFrequency of rate

1 year

Avg. 1 Year ask side KIBOR + 900 BPS with floor of 19% p.a.

Fixed for one year and revised at the time of renewal. Charges Details Processing Charges = Rs. 1,850/-E-CIB Charges

= Rs.125/- per case UptoRs. 100,000/- Rs.200/- per case over Rs. 100,000/-Guarantor e-CIB Charges

= Rs.50/- per report Documentation Charges = Actual

Monthly Installment

5% of outstanding amount at last date of the month OR Mark-up amount; whichever is higher (Payment of Monthly Instalment before 10th of every month)

Debt

Burden The monthly payments of all loans/lease/limits from all FIs/banks should not exceed 50% of Take Home Salary / Net Income.

Late Payment

Penalty

In case of delayed/non-payment, additional 2% mark-up shall be charged. However, 03 grace days shall be allowed for payment

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Eligibility

Criteriaearlier (59 Years at maturity of facility).Age between 25 and 59 Years or retirement date; whichever is

 Minimum Monthly Take Home Salary/Income is Rs.

15,000/- Permanent Employee with Minimum 03 Year of job Experience including 01 year with current employer Contractual Employees are also eligible but loan should be adjusted before 06 months of the expiry of contract.

 Maintaining Salary Account in any bank.

 Have valid CNIC

Documents

Required Copy of valid CNICLatest Salary Slip (Employer Certificate, if salary slip is not

provided by employer)

 Employer Certificate on organization’s letter head (as per BOP specimen)

 Bank Statement for last 06 months (where salary is being transferred)

 Latest Copy of utility bills (Electricity & phone) (of present living address)

 Two recent photographs

 Income Tax Return/Wealth Statement OR Non-Tax Payees Form, if applicant is a non-tax payer – In case of non-tax payee

Security Departmental Undertaking or Two Personal Guarantees of employees of equivalent/senior grades to the client or where no equivalent/senior grade officer is available then Personal Guarantee of two officers of grade 17 or above shall be obtained. (Financial

commitment of Guarantor should be established through E-CIB report & Salary Slip/Employer Certificate/Bank Statement)

In cases where the departments show intention to stand as guarantor, an agreement shall be signed between the concerned Department/Organization and Bank (through Regional Chief) whereby the Organization shall undertake to deduct the amount due at its own and then deposit the same into client’s account.

 THREE undated cheque for the full marked up amount i.e (Principle + Mark-up of 01 year)

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BOP Car Loan

Particulars Bank’s Policy

About

Scheme A lease facility for the purchase of vehicles for personal use.

Features

Target

Market

Salaried Individuals (SI)

 Self Employed Professionals (SEP)

 Self Employed Businessmen (SEB)

Finance

Amount Minimum: Rs. 200,000/- Maximum: 5,000,000/-Tenure Minimum: 01 Year Maximum: 05 Years

Mark up

Rate Tenure Mark-up Rate

1 year Avg. 1 Year ask side KIBOR + 400 bps with floor of 17% p.a.

2 Years Avg. 2 Years ask side KIBOR + 400 bps with floor of 17% p.a. 3 & 5

Years

Avg. 3 Years ask side KIBOR + 400 bps with floor of 17% p.a.

Minimum

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10% 15% 20%

Down Payment

Equity + Processing Charges + First Year Insurance + First Monthly Instalment Charges Details Processing Charges = Rs. 5,000/-E-CIB Charges = Rs.300/- per case Guarantor e-CIB Charges

= Rs.50/- per report. Documentation Charges

= Actual Insurance Rate

= 4% from Insurance company on bank’ panel Registration Charges

= Actual. Payable directly by the customer

Pre-Payment

Penalty

Pre-payment penalty @5% on principal outstanding .However, If the customer repays in order to obtain finance for new vehicle no penalty

may be charged.

Debt Burden

The monthly payments of all loans/lease/limits from all FIs/banks should not exceed 50% of Take Home Salary / Net Income.

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Payment Penalty

ChequeDishonouring Charges (as per schedule of charges of the bank)

Eligibility Criteria

ELIGIBILITY CRITERIA FOR GOVT. EMPLOYEES & BOP EMPLOYEES

 Age between 25 and 59 Years or retirement date; whichever is earlier (59 Years at maturity of facility)

 Minimum Take Home Salary is Rs.

10,000/- Permanent Govt. Employee with Minimum 03 Years of job Experience. (01 Year for BOP Employees).

 Contractual Employees are also eligible but loan should be adjusted before 06-months of the expiry of contract. Moreover,

departmental undertaking / one Personal Guarantee of Govt. Employee of grade 17 & above shall be obtained for contractual employees (Financial commitment of Guarantor should be established

through E-CIB report & Salary Slip/Employer Certificate/Bank Statement of salary account showing monthly credits of salary

amount).

 Maintaining Salary Account in any bank.

 Have valid Driving License & CNIC

 Residing or working in launching cities.

ELIGIBILITY CRITERIA FOR PRIVATE EMPLOYEES

 Age between 25 and 59 Years or retirement date; whichever is earlier (59 Years at maturity of facility)

 Minimum Take Home Salary is Rs.

15,000/- Permanent Pvt. Employee with Minimum 03 Years of job Experience including 01 year with current employer.

 Maintaining Salary Account with any bank.

 Have valid Driving License & CNIC

 Residing or working in launching cities.

ELIGIBILITY CRITERIA FOR SEP/SEB

 Age between 25 and 57 Years or retirement date; whichever is earlier (57 Years at maturity of facility)

 Minimum 03 Years in current business.

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through Tax Return or Income Estimation Report of outsourced agencies or Bank Statement).

 Have valid Driving License & CNIC

 Residing or working in launching cities.

Documents Required

FOR SALARIED PERSON

 Copy of valid CNIC

 Latest Salary Slip / Employer Certificate on organization’s letter head (as per BOP specimen)

 Two Recent Photographs

 Bank Statement for last 6 months

 Latest Copy of utility bills (Electricity & phone)

 Income Tax Return/Wealth Statement OR Non-Tax Payees Form, if applicant is a non-tax payer

FOR SELF EMPLOYED PROFESSIONAL /BUSINESSMEN

 Copy of CNIC

 Two Recent Photographs

 Bank Statement for last 01 Year of Business Accounts

 Latest Copy of utility bills (Electricity & phone) of Residence

 Income Tax Return/Wealth Statement OR Non-Tax Payees Form, if applicant is a non-tax payer

BUSINESS RELATED DOCUMENTS.

 Latest copy of utility bills (Electricity & phone) of current business address.

 Documentary evidence in business or in the profession for the last 2 years.

 Proprietorship Certificate/Partnership deed

 Copy of Professional Degree (For Professionals)

Security Car will be registered in the name of Bank as per lease

agreement.

 Comprehensive Insurance Policy (Insurance Certificate/policy will be sent directly to the branch by the Insurance Company).

 Post Dated Cheques as per the repayment schedule.

 Three (03) undated cheques of marked up amount (Principal + Mark-up) Any additional guarantee, if required as per the contents of

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the approval letter

Agriculture Credit

Lease Finance Facility for Purchase of Tractor under Green Tractor Scheme 2008-2009

In the wake of Chief Minister, Punjab's agenda for promotion of Agriculture Sector, Government of Punjab has decided to provide 10000 Tractors to small farmers on subsidized rates. A subsidy of RS: 200,000/- per tractor will be provided to the farmers declared successful through computerized balloting. The scheme has been titled as "Green Tractor Scheme 2008-09". In order to facilitate farmers and to grasp maximum business, our Management has approved a special product titled as "LEASE FINANCE FACILITY FOR PURCHASE OF TRACTOR UNDER GREEN TRACTOR SCHEME 2008-09" with following terms & conditions:

ELIGIBILITY:

All Farmers who have been declared successful through computerized balloting

The applicant should be a resident, owner/self cultivator of minimum 05 Acres of agri land free from all encumbrances. Existing BOP borrowers having land under Bank's charge are also eligible under this scheme.

The applicant should not be a defaulter of any Financial Institution. PRICE OF TRACTOR:

The price of Green Tractor would be less by RS: 200,000/- from market price of tractor. Subsidy of RS: 200,000/- will be provided by Govt. Of Punjab directly to Tractor Manufacturers

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MAKE OF TRACTOR:

Government of Punjab has approved M/s Millat Tractors (Pvt.) Ltd. and Al-Ghazi Tractors Limited as Local Manufacturers of tractors for the scheme.

AMOUNT OF FINANCE:

The amount of finance will be equal to the price of locally manufactured tractor less subsidy amount of RS: 200,000/- to be provided by the Government of Punjab. However, maximum amount of facility will not exceed the ex - factory price of tractor.

EQUITY:

No Equity for Tractors having price up to RS: 500,000 10% equity of Subsidized Price (actual price - subsidy amount) for all Tractors having price above RS:

500,000/-SECURITY:

• Leased Asset (Tractor) itself (Tractor will be registered solely in the name of The Bank of Punjab).

• Charge on Agriculture Land through Agri. Pass Book. • Two written satisfactory market checking reports

MARGIN ON COLLATERAL SECURITY:

• 25% margin on three years OstBai of Agri Land as assessed by Revenue Officials. • 50% margin on FSV of Agri Land as evaluated by Bank's approved surveyor (s).

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INSURANCE:

Asset Insurance and Life assurance of the Borrower (assigned to BOP) as per Bank's policy Insurance, Registration and evaluation charges (if any) etc shall be borne by the farmer.

MARK-UP: 18% per Annum

VALIDITY:

05 Years from the date of disbursement.

REPAYMENT:

10 Equal Half Yearly Installments (Principal + Mark up).

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Kisan dost scheme

Agriculture Schemes Markup Scheme for Controlled Shed Agriculture Finance Scheme Model Dairy Farms

Kisan Dost Tractor Finance Scheme

PURPOSE:

Provision of financial facility to the farmers and non farmers (those who provide tractors to farmers on rental basis for various tractor related operations), for purchase of Tractor on Lease Finance Basis

ELIGIBILITY:

Resident Self Cultivator having Agriculture Land minimum 5 acres and maximum 50 acres. OR The persons who are related with the business of providing services for tractor related farming practices to the farmers on rental Basis.

AMOUNT:

Maximum Rs. 750,000/-. EQUITY:

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SECURITY:

1. Lease Tractor (to be registered in the name of Bank) 2. Charge on Agriculture Land through Agri. Pass Book.

3. One personal guarantee of reputable person. Two written satisfactory market checking reports

MARGIN ON COLLATERAL SECURITY:

50% Margin on Agri land assessed by PBA’s Approved Surveyor. 25% Agri land as per value in revenue record. The maximum amount of Finance will be allowed upto 75% of the OastBai Value of land (OastBai is verified by Revenue Officer)

INSURANCE:

The Lessee will arrange comprehensive insurance of tractor. Life assurance of lessee under the Bank’s charge

MARK-UP: 18% per Annum

REPAYMENT:

10 equal half yearly installments (within five years).

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Name of Scheme Type Rate of Markup FARM SECTOR

Kissan Dost Agrimall Finance

Scheme (LEASE FINANCE) Development 18% p.a

Kissan Dost Agrimall Finance

Scheme (LEASE FINANCE) Development 18% p.a

Forced D/F Agri Loan against L/G &

L/C etc. Development 18% p.a

Kissan Dost Mechanization Support

Scheme Development 18% p.a

K.D. Aabiari Scheme Development 18% p.a

Kissan Dost Islah-e-Arazi Scheme Development 18% p.a K.D Commercial Agro Services

Scheme Development 18% p.a

K. D. Green House Finance Scheme

(D/F) Development 18% p.a

K. D. Green House Finance Scheme

(L/F) Development 18% p.a

K.D. Cold Storage Finance Scheme

(L/F) Development 18% p.a

K.D. Cold Storage Finance Scheme

(D/F) Development 18% p.a

K.D. Drip Irrigation System Finance

(L/F) Development 18% p.a

Green Tractor Scheme Development 18% p.a

K.D. Farm Transport Scheme Development 18% p.a Kissan Dost Commercial Tractor

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Kissan Dost Agriculture Finance

Scheme Production 18% p.a

K.D Agriculture Corporate Farming

Finance Scheme Production 18% p.a

Kissan Dost Agrimall Finance

Scheme (R/F) Production 6 month KIBOR + 350 BPSwith floor rate of 12% P.A K.D. Cold Storage Finance Scheme

(R/F) Production 18% p.a

K. D. Agriculture Corporate Farming

Finance Scheme Production 18% p.a

K. D. Green House Finance Scheme

(R/F) Production 18% p.a

Scheme for Controlled Sheds

PURPOSE

The purpose of this scheme is to provide finance: For Construction of new Controlled Poultry Sheds For remodeling of existing Sheds in to Controlled Sheds For modernization/remodeling of existing sheds by replacing equipment machinery Import of Machinery/Equipments related to Controlled Sheds

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ELIGIBILITY

A genuine farmer engaged in Agri related activities directly or indirectly having a suitable land to erect Controlled Sheds Not a defaulter of any Financial Institution Having land free from all encumbrances to be offered as security

NATURE & AMOUNT OF FACILITIES

MEDIUM TERM DEMAND FINANCE FACILITY (D/F)

Amount of Finance

(For construction of Controlled Sheds for Poultry Farming) 70% of the cost of construction as assessed by PBA’s approved surveyor according to the proposed plan of construction.

EQUITY:

30% of the cost of construction as assessed by PBA’s approved surveyor according to the proposed plan of construction.

MEDIUM TERM LEASE FINANCE FACILITY (L/F) AMOUNT OF FINANCE

(For purchase of machinery and equipments for modernization/remodeling of existing poultry sheds (Feeding System, Nipple System, Cooling Pads, Fans, Heaters, Generators and Weighbridge etc) 80% of purchase price of Equipment/Machinery

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Letter of Credit Facility L/C

Facility for import of equipments/machinery to be installed in the Controlled Shed

 Import L/C (sight) Cash Margin 20%

 Retired through L/F of 5 years period

 Lease Key Money 20%

TENURE OF FACILITIES

Five Years in case of Demand Finance with grace period of ONE YEAR Five Years in case of Lease Finance

TYPE OF SECURITY

1. Primary

Leased Assets in case of Lease Finance Facility (receipt will be issued in the name of the Bank of Punjab)

2. Collateral

Charge on agriculture land through Agri Passbook OR Charge on urban immovable property through equitable/registered mortgage the property should be cleared by the banks approved legal counsel and will be assessed by the Banks and PBAs approved surveyor. OR · Liquid security in shape of Bank’s Fixed Deposit Receipt/DSC/NSC or Regular Income Certificates. · One personal guarantee of a reputable person. ACO along with Regional Chief can waive this condition if they deem the borrower to be credit worthy.

Margin on Security

Figure

Updating...

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