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A FARMER FRIENDLY BANK

www.ppcbl.com.pk

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Internship Report On The Punjab Provincial Co-operative Bank Ltd
 Introduction!

 Student Name
 Muhammad Zubair Anjum
 Student ID
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 BC080201453
 Degree Program
 BS-Business Administration
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 Area of Specialization
 Finance

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 Contents!
1 Intro of the Organization

2 Org Hierarchy Chart

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3 Training Program

4 Ratio Analysis
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5 Conclusion

6 Recommendation

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 Organization Introduction!

Creation of Bank
 PPCBL created through cooperative societies act 1924
 Funding to central cooperative banks & societies
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 Setup was created at Tehsil & District Level

Major Objectives
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 To promote cooperation through cooperative societies
 To reduce poverty by providing less markup loans
 To increase production of agriculture sector

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 Organization Introduction!

Products
 Bank provides two types of loaning products
 Crop loans to cooperative societies
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 Loans like goat sheep finance to individual farmers

 Medium term tractor finance & livestock projects finance
Services
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 Remittance
 Crop insurance, Pension scheme
 Utility bills collection & lockers facilities

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 Organization Introduction!

Branch Network
 Extensive network of 159 branches
 Eight zonal offices throughout Punjab
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 Head office bank square Share-Qaid-E-Azam Lahore

Business Volume
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 Approximately 14.35 billion rupees in total assets

 Approximately 4.65 billion rupees liabilities
 Shareholders equity is 6 Billion

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 Detailed Business Volume
Description of Accounts In 2009 In 2010 In 2011
Rs.(Mil ) Rs.(Mil) Rs.(Mil)
Profit Before tax (979.071) (174.826) 508.403
Profit After Tax / Net Inc (979.071) (179.626) 479.773
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Equity balance total 87.361 2304.214 6089.755
Advance and Net 8177.689 7385.647 6020.045
Total Assets 13711.922 15245.873 14359.198
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Deposits & Other A/C 1837.175 3820.343 2443.098
Investments 451.012 799.673 1503.620
Total Current Liabilities 10016.170 9355.390 4655.248
Earning Per Share (225.80) (41.41) 110.53

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 Organization Competitors

Farmer Banking Competitors

 Zarrai Taraqiati Bank Ltd
 Khushali Bank Ltd
General Banking Competitors
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 MCB Bank Limited

 Habib Bank Limited
 SILKBANK Limited
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 United Bank Limited
 Allied Bank Limited
 Askari Commercial Bank Limited
 Habib Metropolitan Bank Limited

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 Organizational Hierarchy Chart

Boar of Directors

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Board Sub
Secretary
Committee of Audit
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President / CEO

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 Organizational Hierarchy Chart

President
/
CEO

Head Head
your family siteHead Head Head
Business C.R.M.D Head Internal
C.F.O Operation SAM &
Developm & H.R Cont &
ent CAD I.T Legal Compliance

Deputy Head Deputy

Deputy Deputy Deputy Deputy Deputy
Retail / Head
Head
Head Head Head Head
Corporate
Reconciliation Admin & Estt Internal
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Credit Risk Operations SAM Control

Deputy Deputy Deputy Deputy Deputy Deputy

Head
Head Head Head Head Staff
Head
Accounts C.A.D I.T Legal Benefit & Tax Compliance

Deputy Deputy Head Deputy

Engineering Compliance
Head Head
& Officers
Treasury Properties Training

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 Organizational Hierarchy Chart

Zonal / Divisional
Head

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Deputy Zonal Head Deputy Zonal Head
Statistics &
(Operation & H.R) Credit & Recovery
Consolidation

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Officer(s) Officer(s) Officer(s) Operator
Operator Operator

Branch Manager

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 Organizational Hierarchy Chart

Branch Manager

Compliance Officer Branch Agri Credit &

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Officer Operation Recovery Officer(s)

Officer(s)
Supporting Staff
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Cashier

Messenger
/ Guards

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 Training Program

Account Opening Department Tasks

 Filling account opening form
 Opening accounts & issuing checque books
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 Preparation of vouchers
Bill Collection Department Tasks
 Receiving utility bills
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 Making entries in scroll book

 Calculation gross amount and commission
 Printable scroll for balancing & record keeping

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 Training Program

I. T Department Tasks
 Preparation of weekly / monthly affairs
 eCIB verification & societies loan statements
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 Printing editing and sharing online documents

Agri-Credit & Recovery Department Tasks
 Filling loan set
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 Calculation of average sale value

 Markup calculation of borrowers
 Reminder phone calls to borrowers for installments

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 Financial Statements

Statements are available at!

http://www.ppcbl.com.pk
http://www.ppcbl.com.pk/financial
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 Ratio Analysis
Ratio The Punjab Provincial Co-operative Bank Ltd
Analysis Formula: Net profit / (loss) After Tax / Net sale *100
Year 2009 Year 2010 Year 2011
Net (979071) /1193637 (179626)/1553750 479773/1647318
Profit
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= = =
Margin -82.02 % -11.56 % 29.12%
50

0
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-50

-100
2009 2010 2011
Net Profit -82.02 -11.56 29.12
Margin

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 Ratio Analysis
Ratio The Punjab Provincial Co-operative Bank Ltd
Analysis Formula:MarkupEarn–MarkupExpense/MarkupEarn
Year 2009 Year 2010 Year 2011
Gross 1193637 / 1570956 1553750 /965655 1647318/386027
yourSpread
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Ratio -31.61 % 37.85 % 76.56%
100.00%

50.00%
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0.00%

-50.00%
2009 2010 2011
Gross Spread -31.16% 37.85% 76.56%
Ratio

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 Ratio Analysis
Ratio The Punjab Provincial Co-operative Bank Ltd
Analysis Formula: Non Interest Income/Total Income
Year 2009 Year 2010 Year 2011
Non 77394 / 1271031 76830 /1630580 73906 / 1721224
interest to
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= = =
total 6.08% 4.71% 4.29%
income
10.00%
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5.00%

0.00%
2009 2010 2011
Non Interest 6.08% 4.71% 4.29%
Income to Total
Income ratio
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 Ratio Analysis
Ratio The Punjab Provincial Co-operative Bank Ltd
Analysis Formula: Interest Earned / Interest Expense
Year 2009 Year 2010 Year 2011
Spread 1193637 / 1570956 1553750 / 965655 1647318 /386027
Ratio
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= = =
0.75 times 1.60 times 4.26 times
5
4
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2
1
0
2009 2010 2011
Spread Ratio 0.75 1.6 4.26

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 Ratio Analysis
Ratio The Punjab Provincial Co-operative Bank Ltd
Analysis Formula: (Net profit after tax/total assets) * 100
Year 2009 Year 2010 Year 2011
Return (979071)/13711922 (179626) 479773 /
on Asset
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*100 /15245873*100 14359198*100
Ratio = -7.1% = -1.17% = 3.34%
5.00%

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-5.00%

-10.00%
2009 2010 2011
Return on Asset -7.10% -1.17% 3.34%

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 Ratio Analysis
Ratio The Punjab Provincial Co-operative Bank Ltd
Analysis Formula: Net Income/Sales x Sales/Total Assets x100
Year 2009 Year 2010 Year 2011
DuPont (979071)/1193637 (179626)/1553750 479773/1647318
Return
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= = =
on Asset -7.14 -1.17 3.34
4
2
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-2
-4
-6
-8
2009 2010 2011
Dupont Return on Asset -7.14 -1.17 3.34

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 Ratio Analysis
Ratio The Punjab Provincial Co-operative Bank Ltd
Analysis Formula: Net profit or loss after tax/total Equity x 100
Year 2009 Year 2010 Year 2011
Return (979071)/87361 (179626)/2304214 479773/6089755
on
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= = =
Equity -1120.70 -7.79 7.87
500
0
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-500

-1000
-1500
2009 2010 2011
Return on Equity -1120.7 -7.79 7.87

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 Ratio Analysis
Ratio The Punjab Provincial Co-operative Bank Ltd
Analysis Formula: (Total Debt / Total Assets)*100
Year 2009 Year 2010 Year 2011
Debt 10016170/ 9355390/ 4655248/
Ratio
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13711922 15245873 14359198
= 0.73% = 0.61% = 0.32%
0.80%

0.60%
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0.40%
0.20%

0.00%
2009 2010 2011
Debt Ratio 0.73% 0.61% 0.32%

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 Ratio Analysis
Ratio The Punjab Provincial Co-operative Bank Ltd
Analysis Formula: Total Liabilities / Shareholders Equity
Year 2009 Year 2010 Year 2011
Debt to 10016170 / 87361 9355390/2304214 4655248/6089755
yourEquity
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Ratio 114.65 % 4.06% 0.76%
200.00%
180.00%
160.00%
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120.00%
100.00%
80.00%
60.00%
40.00%
20.00%
0.00%
2009 2010 2011
Debt / Equity Ratio 114.65% 4.06% 0.76%

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 Ratio Analysis
Ratio The Punjab Provincial Co-operative Bank Ltd
Analysis Formula: EBIT / Total Interest
Year 2009 Year 2010 Year 2011
Times 591885/1570956 790829/965655 894430/386027
Interest
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= = =
Earned 0.37 times 0.81 times 2.31 times
3
2
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1
0
2009 2010 2011
Time Interest Earned 0.37 0.81 2.31
Ratio

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 Ratio Analysis
Ratio The Punjab Provincial Co-operative Bank Ltd
Analysis Formula: Total Advances/ Total Deposits
Year 2009 Year 2010 Year 2011
Advances 8177689/1837175 7385647/3820343 6020045/
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Deposit
site = = 2443098 =
Ratio 4.45 1.93 2.46
10
8
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4
2
0

Advances / Deposit 4.45 1.93 2.46

Ratio

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 Ratio Analysis
Ratio The Punjab Provincial Co-operative Bank Ltd
Analysis Formula:Net cash of Operating activities/CurrentLiabilities
Year 2009 Year 2010 Year 2011
Operating (321956)/ (2135260)/ (2529962)/
cash
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= -0.0321 = -0.2282 = -0.5434
0
-0.1
-0.2 2009 2010 2010
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-0.4
-0.5
-0.6

Operating Cash Flow Ratio -0.0321 -0.2282 -0.5434

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 Ratio Analysis
Ratio The Punjab Provincial Co-operative Bank Ltd
Analysis Formula: Net income/ Outstanding No. of Shares
Year 2009 Year 2010 Year 2011
Earning (979071000) (179626000)/ 479773000/
Per
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/4335068 4337440 4340625
Share = -225.8 =-41.41 =110.53
200
100
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-100 2009 2010 2011
-200
-300

Earning Per Share -225.8 -41.41 110.53

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 Ratio Analysis

Dividend Per Share: Due the losses in previous

some years bank could not paid any dividends to
its shareholders.
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Price Earning Ratio: data are not available due to
unlisted organization.
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 Conclusion!
 Increase markup revenue and reduce expenses

 Increase its non interest income

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 Inefficient utilization of assets in previous years

 Improve return on equity

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 Improve its debt/equity ratio

 PPCBL Improve its liquidity

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 Recommendations!
 Reduce expenses to better profit margin

 Increase its non interest income from commissions etc

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 Efficiently utilize assets to increase return on assets

 Improve ROE so that investors should invest more.

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 For equity investors PPCBL improve its debt/equity ratio

 PPCBL Improve its liquidity by increasing OCF ratio.

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 Thank You!
c

www.ppcbl.com.pk

CELL: +92-333-6204958

FAX: +00-0-0000-0000

E-mail:[email protected]

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