INTERNSHIP REPORT

ZARAI TARAQIATI BANK LIMITED

HEAD OFFICE ISLAMABAD

Supervised By
Mr. Muhammad Kaleem
Lecturer IMS Dept.

Submitted By
Wasim Uddin
BBA (Hons) 8th term

INSTITUTE OF MANAGEMENT SCIENCES

KOHAT UNIVERSITY OF SCIENCE &
TCHNOLOGY
 KOHAT, N.W.F.P. PAKISTAN
SESSION 2005-2009

INTERNSHIP REPORT
ZARAI TARAQIATI BANK LIMITED
HEAD OFFICE ISLAMABAD

This internship report is

submitted to the Institute of Management
Sciences in partial fulfillment of the
Requirement for the Degree of the Bachelor of
Business Administration (Hons) from the Kohat
University of Science and Technology.

INSTITUTE OF MANAGEMENT SCIENCES

KOHAT UNIVERSITY OF SCIENCE &
TCHNOLOGY
KOHAT, N.W.F.P. PAKISTAN
SESSION 2005-2009

“Read and Lord is the most bounteous,

who teaches by the pen, teaches man that
which he knew not.”

(Al-Quran)
 It is certify that this internship report on
“Finance & Accounts Division of ZTBL Head Office
Islamabad” is approved & recommended as partial
fulfillment for the Degree of Bachelor of Business
Administration (Hons), from the Institute of
Management Sciences, Kohat University of Science &
Technology.

_____________

_____________
Sir Muhammad Kaleem
Lecturar IMS Dept. KUST

_____________
Sir Safi Ullah
Lecturar IMS Dept. KUST
 I dedicated this endeavor to my kind mother & all
my respectable teachers whose guidelines, suggestions
& encouragements are great source of strength that helps
me & their prolonged banishment provide me an incentive
& opportunity to complete this report on the “Finance &
Accounts Division of the ZTBL”, successfully.

WASIM UDDIN
 I always wanted to work in an organization where there is exclusive
environment, healthy competition and ample prospect of professional
growth, for this reason the best option that came in my mind was “Zarai
Taraqiati Bank Limited”, for accomplishment of my internship. During my
internship, I was exposed to different types of work environments which
really enhanced my knowledge and broadened my experience to
maximum. I worked in four departments of the Finance Accounts Division
such as the Central Accounts Department, the Head Office Accounts
Department, the Regulatory and Reporting Department and the Budget
and Fund Reconciliation Department. I am really grateful to the
management of this bank for providing challenging and dynamic
opportunities. The employees of the ZTBL are very talented & educated &
the way to give the training to the internees is very frankly & cooperatively
that leads to complete my internship report successfully.
 First of all, I offer my deep gratitude to Almighty Allah, most merciful
and gracious, who blessed us knowledge and inspiration to accomplish
the internship report on “Finance & Accounts Division of the Zarai
Taraqiati Bank Limited”, successfully.

Secondly, I express my heartiest obligation and thanks to our

internship report supervisor, Sir Muhammad Kaleem Sultan (Lecturer in
Finance), for his kind guidance and valuable suggestions. His patronizing
attitude and possible support helped me in the completion of this
internship report and BBA (Hons) degree as well.

I extend my acknowledgement to Mr. Mustafa Khan (Senior Office

in the ZTBL) who helped and gave me all pertinent information in such
away that we did not feel any difficulty to understand the overall operation
of Finance & Accounts Division of the ZTBL that will leads to complete the
internship report on the ZTBL successfully.

Finally, I am extremely grateful to our parents, who played a vital

role throughout our graduation and particularly during our preparation of
internship report on the ZTBL. Without their support, cooperation and
prayers, I would have never been able to complete the internship report
on “Finance & Accounts Division of the ZTBL” successfully.
 WASIM
UDDIN

1. Preface.................................................................................... i
2. Acknowledgement................................................................... ii
3. Table of Contents..................................................................... iii

4. List of Acronyms...................................................................... viii

5. List of Tables........................................................................... x
6. List of Figures/ Hierarchy........................................................ xi
7. Executive Summary................................................................
xii

SECTION -I
Chapter-1 INTRODUCTION TO REPORT

1.1 Background of Study............................................................... 1

1.2 Purpose of Study..................................................................... 2
1.3 Scope of Study........................................................................ 3
1.4 Importance of Study................................................................ 3
1.5 Research Methodology........................................................... 4
1.5.1 Primary Data............................................................. 4

1.5.2 Secondary Data........................................................ 4

1.6 Limitation of Study................................................................... 5
1.7 Scheme of Report.................................................................... 5
SECTION -II
Chapter-2 INTRODUCTION TO BANKING

2.1 Meaning and Origin of Bank................................................... 8

2.2 Evolution of Banking.............................................................. 8
2.2.1 The Merchants.......................................................... 9
2.2.2 The Goldsmiths......................................................... 9
2.2.3 The Money Lenders................................................... 9
 2.3 Evolution of Banking in the Pakistan...................................... 10
2.4 Classification of Banks in the Pakistan................................... 11
2.5 Role of ZTBL in the Economic Development of Pakistan....... 13

Chapter-3 INTRODUCTION TO ZTBL

3.0 Introduction............................................................................... 16
3.1 History of ZTBL......................................................................... 17
3.2 Corporate Vision....................................................................... 17
3.3 Corporate Mission..................................................................... 17
3.4 Corporate Objective.................................................................. 18
3.5 Restructuring Plans................................................................... 18
3.6 Board of Directors..................................................................... 19
3.7 Committees & Organizational Structure of the ZTBL................ 20
3.7.1 Board Committees...................................................... 20
3.7.2 Management Committees........................................... 20
3.7.3 Organizational Structure of ZTBL............................... 21
3.8 Zonal Offices & Branches......................................................... 21
3.9 Ranking of Staff Members........................................................ 22
3.10 Subsidiary................................................................................. 23

Chapter-4 PRODUCTS AND SERVICES OF ZTBL

4.0 Introduction................................................................................ 24
4.1 Schemes of ZTBL...................................................................... 24
4.1.1 Sairab Pakistan Scheme............................................. 25
4.1.2 Supervised Agriculture Credit Scheme........................ 25
4.1.3 White Revolution Scheme........................................... 25
4.1.4 Micro Credit Scheme................................................... 26
4.1.5 Zarkhaiz Scheme (One Window Operation) ............... 26
4.1.6 Sada Bahar Scheme................................................... 27
4.1.7 Tea Financing Scheme................................................ 27
4.2 Loans of ZTBL........................................................................... 28
4.2.1 Production Loan.......................................................... 28
4.2.2 Development Loan...................................................... 28
4.3 Recovery Procedure of Loan..................................................... 29
4.3.1 Recovery Schedule.................................................... 29
4.3.2 Issuance of Notice...................................................... 30
 4.3.3 Legal Action................................................................ 30

Chapter-5 FINANCE & ACCOUNTS DIVISION

5.0 Introduction..................................................................................... 31
5.1 Functions of Finance & Accounts Division...................................... 32
5.3 Classification of Finance & Accounts Division................................ 33
5.4 Hierarchy of Finance & Accounts Division...................................... 34

Chapter-6 CENTRAL ACCOUNTS DEPARTMENT

6.0 Introduction...................................................................................... 35
6.1 Objectives of Central Accounts Department.................................... 35
6.2 Functions of Central Accounts Department..................................... 35
6.3 Units of Central Accounts Department............................................ 36
6.3.1 Policy Unit...................................................................... 36
6.3.2 Accounts Unit................................................................. 37
6.3.3 Tax Unit........................................................................... 38
6.3.4 Fixed Asset Unit............................................................. 38
6.3.5 Pre-payment Verification Unit........................................ 39

Chapter-7 HEAD OFFICE ACCOUNTS DEPARTMENT

7.0 Introduction.................................................................................... 40
7.1 Units of Head Office Accounts Department................................... 41
7.1.1 Payroll Unit................................................................... 40
7.1.2 Fund Unit...................................................................... 40
7.1.3 Payment Unit................................................................ 41
7.1.4 Inter Branch Transaction Unit (IBTU)........................... 41
7.1.4.1 Objectives of the IBTU............................... 43
7.1.4.2 Unit Structure of the IBTU.......................... 43
7.1.4.3 Responsibilities of Unit Incharge................ 43
7.1.4.4 Steps in Information Processing................. 44
7.1.4.5 Diagrammatic Representation of
Information Processing of IBTU................. 45

Chapter-8 REGULATORY REPORTING DEPARTMENT

8.0 Introduction....................................................................................... 46
8.1 Objectives of Regulatory Reporting Department............................... 46
 8.2 Functions of Regulatory Reporting Department................................ 46
8.3 Units of Regulatory Reporting Department....................................... 47
8.3.1 Regulatory & Internal Reporting Unit............................... 47
8.3.2 Financial Management Information
System Unit...................................................................... 48
8.3.2.1 Role of Financial Management
Information System Unit.................................... 48

Chapter-9 BUDGET & FUND RECONCILITATION DEPARTMENT

9.0 Introduction........................................................................................ 49
9.1 Objectives of Budget & Fund Reconciliation Unit.............................. 50
9.2 Functions of Budget & Fund Reconciliation Unit............................... 50
9.3 Units of Budget & Fund Reconciliation Unit...................................... 51
9.3.1 Budget Planning Unit........................................................ 51
9.3.1.1 The Budget Development Cycle (BDC)............ 52
9.3.2 Budget Analysis Unit......................................................... 53
9.3.3 Treasury Unit...................................................................... 53
9.3.4 Fund Reconciliation Unit.................................................... 54

SECTION -III
Chapter-10 VARIOUS ANALYSIS

10.0 Introduction....................................................................................... 55
10.1 SWOT Analysis................................................................................. 55
10.1.1 Strengths.......................................................................... 56
10.1.2 Weakness........................................................................ 57
10.1.3 Opportunities.................................................................... 58
10.1.4 Threats............................................................................. 59

10.2 Ratio Analysis....................................................................................... 60

10.2.1 Liquidity Ratios............................................................. 60
10.2.1.1 Current Ratio............................................. 60
10.2.1.2 Quick Ratio................................................ 61
10.2.1.3 Net Working Capital................................... 61
10.2.2 Leverage Ratios........................................................... 62
 10.2.2.1 Debt Ratio................................................. 62
10.2.2.2 Total Debt to Net Worth Ratio.................... 62
10.2.2.3 Time Interest Earned Ratio........................ 63
10.2.3 Profitability Ratios.......................................................... 63
10.2.3.1 Return on Asset.......................................... 64
10.2.3.2 Return on Equity......................................... 64
10.2.3.3 Earnings Per Share.................................... 65
10.3 Human Resource Analysis............................................................ 65
10.4 Marketing Analysis........................................................................ 67

SECTION -IV
Chapter-11 FINDINGS & RECOMMENDATIONS
14.1 Findings........................................................................................... 69
14.2 Recommendations........................................................................... 70
14.3 Personal Experience........................................................................ 71
14.4 Conclusion....................................................................................... 72
14.5 Annexures........................................................................................ 73
Bibliography
ABL Allied Bank Limited

ADB Agriculture Development Bank

ADFC Agriculture Development Finance Corporation

ADPB Agriculture Development Bank of Pakistan

BFRD Budget and Fund Reconciliation Department

BDC Budget Development Cycle

BOD Board of Director

CAD Central Accounts Department

CAF Central Accounts File

COBOL COmmon Business-Oriented Language

FAD Finance and Account Division

FAU Fixed Asset Unit

FMISU Financial Management Information System

GDP Gross Domestic Product

GLH General Ledger Head

HBL Habib Bank Limited

HOAD Head Office Accounts Department

HOOD Head Office Operations Department

IBTU Inter Branch Transaction Unit

ITSSD Information Technology and System Support Department

KSSL Kissan Support Services Limited

MCB Muslim Commercial Bank

MCO Mobile Credit Officers

MINFAL Ministry of Food, Agriculture and Livestock

NBP National Bank of Pakistan

NDFC National Development Finance Corporation

NPL Nestle Pakistan Limited

PDDC Pakistan Development Diary Company

PICIC Pakistan Industrial Credit & Investment Company

PVU Pre-payment Verification Unit

RIRU Regulatory and Internal Reporting Unit

RRD Regulatory Reporting Department

SBP State Bank of Pakistan

SECP Security & Exchange Commission of Pakistan

SME Small Medium Enterprise

SWOT Strengths Weakness Opportunity and Threats

UBL United Bank Limited

ZTBL Zarai Taraqiati Bank Limited

S.No. Topics Page No.
1. List of Board of Director of the ZTBL 19

2. Network of zonal offices & branches of the ZTBL 21

3. Category of employees provided by KSSL 23

4. Provinces wise disbursement of loans & its percentages 28

5. Summary of term wise disbursement of loans 29

6. Calculation of current ratio from 2005 to 2007 60

7. Calculation of quick ratio from 2005 to 2007 61

8. Calculation of NWC from 2005 to 2007 61

9. Calculation of debt ratio from 2005 to 2007 62

10. Calculation of total debt to net worth ratio from 2005 to 2007 62

11. Calculation of time interest earned ratio from 2005 to 2007 63

12. Calculation of ROA from 2005 to 2007 64

13. Calculation of ROE from 2005 to 2007 64

14. Calculation of EPS from 2005 to 2007 65

S.No. Topics Page No.
1. Organization Structure of ZTBL 21

2. Ranking of Staff Members in Order of Seniority 22

3. Hierarchy of Finance and Accounts Division 34

4. Unit Structure of Inter Branch Transaction Unit (IBTU) 43

5. Diagram of Information Processing of the IBTU 45

6. Diagram of SWOT Analysis 55

 Now a day’s strong and efficient capital and financial institutions
are the basic requirements of each county. So no country can be
considered strong without having strong enough capital and financial
institutions and markets. One of the components of these financial
institutions is the banks. Banking is one of the most sensitive
businesses all over the world. Banks play very important role in the
economy of a country and Pakistan is no exemption. Banks are
custodian to the assets of the general masses.
In banking sector of the Pakistan, the ZTBL is one of the leading,
premier and specialized financial institution geared towards the
development of agriculture, industrial and SME sector by providing
financial products, services and loans for their clients and customers.
The ADFC & ABP were merged together as the ADPB in 18th
February 1961. The ZTBL was incorporated as the public limited
company on 14th December, 2002 through repeal of the ADB
Ordinance of 1961. The ZTBL plays very important role in the
agriculture sector of the Pakistan.
In short, the ZTBL is a providing financial service to the rural
areas of the Pakistan that comprising 68% of the total population. The
ZTBL is expanding day by day, & its network of 25 zonal office & 342
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.