c logo a farmer friendly bank internship report on the punjab provincial co-operative bank ltd

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A FARMER FRIENDLY BANK

www.ppcbl.com.pk

Internship Report On The Punjab Provincial Co-operative Bank Ltd

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Finance Finance

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

Introduction!Introduction!

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Contents!

Org Hierarchy Chart Org Hierarchy Chart

Training ProgramTraining Program

Ratio AnalysisRatio Analysis

3

Intro of the Organization Intro of the Organization1

2

4

ConclusionConclusion5

6 Recommendation Recommendation

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Organization Introduction!Organization Introduction!

Creation of Bank PPCBL created through cooperative societies act 1924

Funding to central cooperative banks & societies

Setup was created at Tehsil & District Level

Major Objectives To promote cooperation through cooperative societies

To reduce poverty by providing less markup loans

To increase production of agriculture sector

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Products Bank provides two types of loaning products

Crop loans to cooperative societies

Loans like goat sheep finance to individual farmers

Medium term tractor finance & livestock projects finance


Services Remittance

Crop insurance, Pension scheme

Utility bills collection & lockers facilities

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Branch Network Extensive network of 159 branches

Eight zonal offices throughout Punjab

Head office bank square Share-Qaid-E-Azam Lahore


Business Volume Approximately 14.35 billion rupees in total assets

Approximately 4.65 billion rupees liabilities

Shareholders equity is 6 Billion

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Description of Accounts In 2009

Rs.(Mil )

In 2010

Rs.(Mil)

In 2011

Rs.(Mil)

Profit Before tax (979.071) (174.826) 508.403

Profit After Tax / Net Inc (979.071) (179.626) 479.773

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

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

Detailed Business Volume

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Farmer Banking Competitors Zarrai Taraqiati Bank Ltd Khushali Bank Ltd

General Banking Competitors MCB Bank Limited Habib Bank Limited SILKBANK Limited United Bank Limited Allied Bank Limited Askari Commercial Bank Limited Habib Metropolitan Bank Limited

Organization Competitors

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Boar of Directors

Board Sub Committee of Audit

Secretary

President / CEO

Organizational Hierarchy Chart

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President /

CEO

Head C.R.M.D

& CAD

Head Operation

I.T

Head SAM &Legal

C.F.OHead H.R

Head Internal Cont &

Compliance

Deputy Head

Internal Control

Deputy Head

Admin & Estt

Deputy HeadSAM

Deputy Head

Operations

Deputy Head

Credit Risk

Deputy Head

Reconciliation

Deputy Head Retail /

CorporateBanking

Deputy Head

Accounts

Deputy Head C.A.D

Deputy HeadI.T

Deputy HeadLegal

Deputy Head Staff

Benefit & Tax

Deputy Head

Compliance

Compliance Officers

Deputy Head

Training

Deputy HeadEngineering

& Properties

Deputy Head

Treasury

Head Business

Development


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Zonal / Divisional Head

Deputy Zonal Head(Operation & H.R)

Deputy Zonal HeadCredit & Recovery

Deputy Zonal HeadStatistics &

Consolidation

Officer(s) ComputerOperator

Officer(s)ComputerOperator

Officer(s)ComputerOperator

Branch Manager


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Branch Manager

Compliance Officer

Officer Branch Operation

Agri Credit & Recovery Officer(s)

Officer(s) Supporting Staff

Cashier

Messenger / Guards


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Training Program

Account Opening Department Tasks Filling account opening form

Opening accounts & issuing checque books

Preparation of vouchers

Bill Collection Department Tasks Receiving utility bills

Making entries in scroll book

Calculation gross amount and commission

Printable scroll for balancing & record keeping

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Training Program

I. T Department Tasks Preparation of weekly / monthly affairs

eCIB verification & societies loan statements

Printing editing and sharing online documents

Agri-Credit & Recovery Department Tasks Filling loan set

Calculation of average sale value

Markup calculation of borrowers

Reminder phone calls to borrowers for installments

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Financial Statements

http://www.ppcbl.com.pk

http://www.ppcbl.com.pk/financial

Statements are available at!

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Ratio Analysis

Ratio Analysis

The Punjab Provincial Co-operative Bank Ltd

Formula: Net profit / (loss) After Tax / Net sale *100

Year 2009 Year 2010 Year 2011

Net Profit Margin

(979071) /1193637 =

-82.02 %

(179626)/1553750 =

-11.56 %

479773/1647318 = 29.12%

-100

-50

0

50

Net ProfitMargin

-82.02 -11.56 29.12

2009 2010 2011

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Ratio Analysis

Ratio Analysis


Formula:MarkupEarn–MarkupExpense/MarkupEarn


Gross Spread Ratio

1193637 / 1570956 =

-31.61 %

1553750 /965655 =

37.85 %

1647318/386027 = 76.56%

-50.00%

0.00%

50.00%

100.00%

Gross SpreadRatio

-31.16% 37.85% 76.56%

2009 2010 2011

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Ratio Analysis

Ratio Analysis


Formula: Non Interest Income/Total Income


Non interest to

total income

77394 / 1271031 =

6.08%

76830 /1630580 =

4.71%

73906 / 1721224 =

4.29%

0.00%

5.00%

10.00%

Non InterestIncome to TotalIncome ratio

6.08% 4.71% 4.29%

2009 2010 2011

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Ratio Analysis

Ratio Analysis


Formula: Interest Earned / Interest Expense


Spread Ratio

1193637 / 1570956 =

0.75 times

1553750 / 965655 =

1.60 times

1647318 /386027 =

4.26 times

0

1

2

3

4

5

Spread Ratio 0.75 1.6 4.26

2009 2010 2011

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Ratio Analysis

Ratio Analysis


Formula: (Net profit after tax/total assets) * 100


Return on Asset

Ratio

(979071)/13711922*100

= -7.1%

(179626)/15245873*100

= -1.17%

479773 / 14359198*100

= 3.34%

-10.00%

-5.00%

0.00%

5.00%

Return on Asset -7.10% -1.17% 3.34%

2009 2010 2011

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Ratio Analysis

Ratio Analysis


Formula: Net Income/Sales x Sales/Total Assets x100


DuPont Return

on Asset

(979071)/1193637 =

-7.14

(179626)/1553750 =

-1.17

479773/1647318=

3.34

-8-6-4-2024

Dupont Return on Asset -7.14 -1.17 3.34

2009 2010 2011

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Ratio Analysis

Ratio Analysis


Formula: Net profit or loss after tax/total Equity x 100


Return on

Equity

(979071)/87361 =

-1120.70

(179626)/2304214 =

-7.79

479773/6089755 =

7.87

-1500

-1000

-500

0

500

Return on Equity -1120.7 -7.79 7.87

2009 2010 2011

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Ratio Analysis

Ratio Analysis


Formula: (Total Debt / Total Assets)*100


Debt Ratio

10016170/13711922= 0.73%

9355390/15245873= 0.61%

4655248/14359198= 0.32%

0.00%

0.20%

0.40%

0.60%

0.80%

Debt Ratio 0.73% 0.61% 0.32%

2009 2010 2011

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Ratio Analysis

Ratio Analysis


Formula: Total Liabilities / Shareholders Equity


Debt to Equity Ratio

10016170 / 87361 =

114.65 %

9355390/2304214 =

4.06%

4655248/6089755 =

0.76%

0.00%20.00%40.00%60.00%80.00%100.00%120.00%140.00%160.00%180.00%200.00%

Debt / Equity Ratio 114.65% 4.06% 0.76%

2009 2010 2011

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Ratio Analysis

Ratio Analysis


Formula: EBIT / Total Interest


Times Interest Earned

591885/1570956 =

0.37 times

790829/965655 =

0.81 times

894430/386027 =

2.31 times

0

1

2

3

Time Interest EarnedRatio

0.37 0.81 2.31

2009 2010 2011

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Ratio Analysis

Ratio Analysis


Formula: Total Advances/ Total Deposits


Advances/ Deposit

Ratio

8177689/1837175 =

4.45

7385647/3820343 =

1.93

6020045/2443098 =

2.46

024

6810

Advances / DepositRatio

4.45 1.93 2.46

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Ratio Analysis

Ratio Analysis


Formula:Net cash of Operating activities/CurrentLiabilities


Operating cash flow

(321956)/10016170 = -0.0321

(2135260)/9355390= -0.2282

(2529962)/4655248= -0.5434

-0.6-0.5-0.4-0.3-0.2-0.10

2009 2010 2010

Operating Cash Flow Ratio -0.0321 -0.2282 -0.5434

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Ratio Analysis

Ratio Analysis


Formula: Net income/ Outstanding No. of Shares


Earning Per

Share

(979071000) /4335068= -225.8

(179626000)/4337440=-41.41

479773000/4340625=110.53

-300

-200-100

0100

200

2009 2010 2011

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.

Price Earning Ratio: data are not available due to unlisted organization.

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Conclusion!Conclusion!

Increase markup revenue and reduce expenses

Increase its non interest income

Inefficient utilization of assets in previous years

Improve return on equity

Improve its debt/equity ratio

PPCBL Improve its liquidity

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Recommendations!Recommendations!

Reduce expenses to better profit margin

Increase its non interest income from commissions etc

Efficiently utilize assets to increase return on assets

Improve ROE so that investors should invest more.

For equity investors PPCBL improve its debt/equity ratio

PPCBL Improve its liquidity by increasing OCF ratio.

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www.ppcbl.com.pk

Thank You!

CELL: +92-333-6204958

FAX: +00-0-0000-0000

E-mail:[email protected]

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c logo a farmer friendly bank internship report on the punjab provincial co-operative bank ltd

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