Internship Report

Zarai Taraqiati Bank LimitedOn ZARAI TARAQIATI BANK LIMITED Submitted By: Fatima MPA 2nd Term Session 2010-12 In The Name Of DEPARTMENT OF PUBLIC ADMINISTRATION GOMALMost Beneficent And The UNIVERSITY DERA ISMAIL KHAN ALLAH Merciful 1 Zarai Taraqiati Bank Limited 2 Zarai Taraqiati Bank Limited DECLARATION An internship report submitted to department of Public Administration, Gomal University DIKhan in partial fulfillment of the requirement for M.P.A DEDICATIONS To my parents whose unconditional love & support helped me in making this report. To my siblings for their gentle encouragement & valuable support. Also my dear mother for supporting me through out my tenure of learning as well as praying for my success through out my life and also in my future. Her prayers today make me so proud also my dear father for supporting me financially all my life, fulfilling my basic necessaries as well as luxuries of life. I am thankful to my parents for their support through out my study career. Today what I am, because of them. 3 Zarai Taraqiati Bank Limited ACKNOWLEDGEMENT All praise and gratitude due to ALLAH ALMIGHTY who created man in His own image and enjoyed upon him to travel on the earth and enter into a profound and analytical study of Universe for spiritual appreciation of ALLAH’S unity and His attribute as well as for harnessing the material manifestation of the world to the mankind’s profitable utilization. In the first place, therefore we express our utmost thanks to ALLAH. At the next stage I offer our gratitude to our Apostle and prospector Prophet Muhammad (P.B.U.H) for his golden saying “Gain knowledge is in China”. In the end I would like to thank all the staff members of ZARAI TARAQIATI BANK who cooperated with me in every department. They have cooperated with me in every department. They have provided me with valuable information which helped me a lot in completion of this report. It was relatively a new phenomenon for me, but I am quite sure that I have learned a lot from this internship. 4 In preparing this report. Comsats institute of information technology Lahore has organized a comprehensive internshiptraining program. Despite all of my coherent efforts. when I was given the chance of selecting an organization. Getting a chance of working in ZARAI TARAQIATI BANK LIMITED proved to be very beneficial for me. I do believe that there will always be a room for improvement in the efforts of learner like me. But nothing could have been possible without the cooperation and guidance of the officers of Zarai Taraqiati Bank Limited. All of us were placed in leading organizations of business arena to gain first hand knowledge and insight into their management and working. aware of the practical expertise and to acquaint them with the real management process.B. internship report has been prepared just in accordance with the practical exposure.Zarai Taraqiati Bank Limited PREFACE The pre-requisite of internship program is to make the students of M. After the completion of internship program. FATIMA MPA 2nd SEMESTER Session 2010-12 5 . With an intention of grooming the best executives of the future. I opted for Zarai Taraqiati Bank Limited. So. I think that I gained comprehensive insight into the working of a Bank. I have put all of my best efforts and tried my level best to give maximum knowledge.A. .Zarai Taraqiati Bank Limited Table of Contents EXECTIVE SUMMARY …………………………………………………………......18 MARKETING STRETEGY……………………………………………………….07 MISSION STATEMENT…………………………………………………………. SUGGESTION.16 ORGANIZATIONAL CHART…………………………………………………….15 SWOT ANALYSIS……………………………………………………………….43 6 . …………………………………………………………….07 HISTORY OF ZTBL.33 LEARNING AS INTERNEE………………………………………………………38 CONCLUSION. RECOMMENDATION………………………40 BIBLIOGRAPHY………………………………………………………………….28 COMPETETIVE STRETEGY…………………………………………………….24 BUSINESS PROCESS ANALYSIS……………………………………………..06 VISION STSTEMENT…………………………………………………………….08 ZTBL LENDING SCHEMES……………………………………………………....09 ROLE OF ZTBL……………………………………………………………………12 BOARD OF DIRECTORS………………………………………………………. The Company’s management. now ZTBL has to earn profit to sustain it as a financial institutions. Consistently focusing on improving performance so that risks can be left far behind. 2002 through repeal of formal Agricultural Development Bank of Pakistan Ordinance of 1961. succeeded in establishing ZTBL as the largest loan provider to the agricultural sector at international level. (ZTBL) as it was provided with the funds by federal government. 7 .Zarai Taraqiati Bank Limited EXECUTIVE SUMMARY This report consists of my six weeks internship at Zarai Taraqiati Bank Limited which is situated on Shahr Sultan at Alipur road. when it was transformed to Zarai Taraqiati Bank Ltd. combining innovative strategies. ZTBL started its services in 1961 under the banking ordinance 1961 as ADBP (agricultural development bank of Pakistan) till 2002. aggressive marketing. ZTBL was incorporated as a Public Limited Company on 14th December. creative synergy and visionary approach together with a lean organizational structure capable of efficient response. and other products & services. and to promote career development opportunities for increasing professionalism and technical proficiencies of employees. by delivering financial products and technical services on a competitive and sustainable basis. 8 . by enhancing the availability of credit to the agriculture sector.Zarai Taraqiati Bank Limited Corporate Vision: Dedicated to serve the needs of the farming community. efficient and professional manner. Corporate Mission: To play effective role in the promotion of economic growth. special lending programs. through reliable access to sustainable financing. leading to success of the Bank and the farmers. in a convenient. technical assistance. economic and large growers respectively.000 serving 65%. The new corporate structure redefines the bank's status as a public limited company registered under companies Ordinance'1984 with an independent Board of Directors which aims at ensuring good governance.84 billion with authorized capital of Rs. rural and agriculture financial/non-financial services to the rural Pakistan. 2002 through repeal of ADB Ordinance of 1961. The share of ZTBL in total national institutional agricultural credit remains around 35%. The total assets of the Bank stand at Rs.Zarai Taraqiati Bank Limited ZTBL HISTORY: Zarai Taraqiati Bank Limited (ZTBL) erstwhile Agricultural Development Bank of Pakistan (ADBP) is the premier financial institution geared towards the development of agriculture sector through provision of financial services and technical know how. The restructuring of former ADBP is being carried out with the aim to uplift the agriculture and rural sector by raising farm productivity. 31% & 4 % of subsistence. comprising 68 % of the total population. ZTBL was incorporated as a Public Limited Company on 14th December.2005. ZTBL is a key R. autonomy. streamlining the institutional credit and increasing income generating capacity of the farming community.12. with a nation-wide working strength comprises 5500 employees.89. delivering high quality. 9 .F. The Bank through a country-wide network of 341 branches is serving around half a million clients annually and over one million accumulated account holders with the average loan size of around Rs.25 billion as of 31.I of Pakistan providing affordable. agricultural machinery. tractor. attend the focal points. guidance for implementation of the scheme. orchard. 10 . All the related departments i. production. Post Office etc. 2. Agriculture. loans are provided to the borrowers less than One Window Operation being conducted twice a week during Rabi and Kharif seasons. White Revolution Scheme: PDDC (Pakistan Dairy Development Company) shall recommend good dairy farmer to ZTBL and send the loan request to the bank along with necessary documents. medium and long term loans up to Rs. generator.1.Zarkhaiz (one window operation): For timely and conveniently provision of credit to purchase inputs.e. marketing and repayment of loans. Revenue. under the scheme besides provision of credit. water pump. The modernization of dairy farm will be carried out through financing milk cooling tank. The farmers get their pass books prepared and loan applications processed on the same day whereas sanction payments are made within three days at Branch. Initially the scheme will be for modernization of 5. For Rabi Crops one window operation from October to January and for Kharif Crops from April to September each year which is extendable as per requirement of particular area. livestock. voltage stabilizer.000 farm during 5 years period. information are to the farmers for planning the farm. established at convenient places.Supervised agriculture credit scheme: Under this scheme agriculture loans are given for short. tube well and irrigation facilities etc.00 million per borrower/per case. cooling pad and other dairy equipment. hot water geezer. 3.Zarai Taraqiati Bank Limited ZTBL LENDING SCHEMES: 1. The loans are sanctioned for In Fats. KSB Pumps Company will provide quality machinery/equipment for efficient pumping of water. Scheme's main features are as under: • • Revolving Credit Limit is fixed to cater production credit and ancillary requirements of the farmers during one year period.15 billion. 22 million hectors is cultivated while 9 million hectors is cultivable waste mainly due to non-availability of water. the Bank has launched a Sada Bahar Scheme. For providing timely input loans for crops and working capital for poultry and fishery etc.000 Tube wells/Turbines during the next five years. Assessment for inputs requirements for the whole year is made at the time of first application. 11 . The documentation once completed remains applicable for three years with yearly cleanup/renewal without any further documents. Sada bahar scheme. 2007. Since inception ZTBL financed over 143000 Tube wells amounting to Rs. The Managers are authorized to sanction such loan limits up to Rs. 5.6 billion to the farmers for installation of 30. The company shall also provide after sale service including replacement of parts/availability of spares etc. Out of total 31 million hectors area of Pakistan.Zarai Taraqiati Bank Limited 4. Sairab Pakistan Scheme: Water plays vital role to improve per acre yield. Farmers of at least 3 acres land holding will be eligible to avail financing under the scheme provided loan proposal is feasible. For raising irrigated area to accelerate the economic growth and to facilitate the farmers ZTBL has signed collaboration agreement with M/s KSB Pumps Company Limited (Company) on 28th May. ZTBL will disburse Rs.500 million. through its network of dealers. The amount so assessed is treated as Revolving Limit provided it is within the security limit.O. More over increase in water supply being a key input is required to raise cropping intensity and hence the income of the farmer. per acre has been fixed. Government of Pakistan has launched Crop Maximization Project in 109 villages in various districts throughout the country to increase the productivity/yield of crops.Crop maximization project Ministry of Food. Credit will be given in 3 installments: first year Rs. Agriculture and Livestock (MINF AL).15.TEA FINANCING Scheme In order to increase the tea cultivation in District Mansehra. b. Rebate of 1 % will be allowed in mark-up on timely repayment and proper utilization of the loan. The salient future of the scheme are given as under: a. Maximum Credit Ceiling of Rs. Farmers owing land up to five acres are eligible to avail loans. tea financing scheme has been introduced which would not only save the hard earned foreign exchange but would also help improve the socio-economic condition of the inhabitants of the area. Under the 12 . Like-wise he can repay in lump sum or in installments during the year when his cash position allows him.000/.30.15. Pass Book containing transactions in his SBS Account is supplied to every borrower free of cost. Matta. The credit would be repayable within11 years with 6 years grace period with prescribed markup of 9% per annum. 000/. Shangla par and Dir in Malakand Division.3rd year Rs. 7.provided the disbursed loan is used properly. 2nd year Rs.000/-.Zarai Taraqiati Bank Limited • • • The borrowers can draw the credit in lump sum or in installments according to his requirement. Swat. 6.000/.60. These funds are to be revolved for meeting input credit needs in the project villages till 30th June. 77. Therefore I invited a number of delegations from Asian Development Bank.9 billion in the year 2007 to Rs. and development loans for farm machinery and implements. will be applicable. 2014 after which Bank will return the principal amount to MINFAL. we need to form partnerships with other countries to import latest technologies (financed through multilateral/bi-lateral sources) without which we will be left behind despite our competitive advantage in terms of climate and availability of fertile lands. the back bone of Pakistan's economy. which are almost catered by ZTBL. and a key player for alleviating poverty by ensuring greater outreach for cost effective and timely availability of credit to the farming community. Accordingly Credit needs of the project farmers are being met by respective ZTBL branches through Village Organizations formed for the purpose. Therefore the agricultural loans provided by commercial banks are mostly tied to large agro based industrial projects in sectors like sugar. milk and juice plants etc.Zarai Taraqiati Bank Limited project MINFAL has to provide funds of Rs. Besides financing. During the year 2009 the disbursement of agri loans has increased from Rs. China. Duly the currency of the project Bank is authorized to charge 4% per annum mark-up on loans to project growers to meet its operational cost.893 million to ZTBL for disbursing loans to the project farmers for purchase of inputs.299. In addition ZTBL is required to play another important role in uplifting rural areas with special focus on women.168 Million have since been received by the Bank for the purpose. Australia and USA dealing with agricultural related 13 . Private sectors initiative is understandably lacking in this important economic sector with inherent risks. 22 billion in just one and a half year since my taking charge of the Bank. 9% p. 55. Till the time funds of Rs.e. however in case of default Bank's normal rate of return i. The real needs of the small farmers are production loans for agri inputs. The Bank is increasingly meeting the growing demand of the farming community in line with the Government's policy to revitalize the agriculture sector to play its role in strengthening the Pakistan's economy. registering an increase of Rs. ROLE OF ZTBL ZTBL is the only institution with total focus on agriculture.6 billion.a. e. I am glad to share with you that as an out come of these interactions ZTBL will not only benefit in obtaining technology but arrangement of credit lines through these visiting delegations is also expected as they are patronized by their governments. I take this opportunity to congratulate and appreciate all my colleagues and every member of our team who's untiring efforts have made it possible to achieve the highest ever performance of the bank in all sphere of its operations i. I feel immense pleasure to say that ZTBL has now become a vibrant and self-sustainable financial institution. expanded outreach that guided the Bank's management to translate the vision of the People's Government into reality. This is all due to hard work. This commendable performance in the last two years of the present Government has been due to the dynamic leadership. uninterrupted credit supply. Every member should resolve to surpass the last year's highest performance. dedication and motivation of ZTBL team. 14 .Zarai Taraqiati Bank Limited Products and non-traditional items. and set an example for other institutions to emulate. I do hope that the present pace and dedication would continue by our professionally competent team. Now that ZTBL team has been assured that all good work would be rewarded. The objective was to gain knowledge and experience from these countries and to apply such experience locally to increase the income of the poor farmers. vision and direction of the Honorable President of Pakistan Mr. The Bank's vision is to be the lead bank dedicated to serve the financial and technical needs of the farming community efficiently. deposit. using their best abilities and extending fullest cooperation to accomplish new dimensions for the Bank. We plan to continue such interactions. support. Asif Ali Zardari and Honorable Prime Minister of Pakistan Syed Yousaf Raza Gillani for mechanization of farms.performing loans*(Link for Performance Indicators). disbursement. which has resulted in taking financial health of the institution to new heights as well as meeting the credit and technological needs of our farmers contributing to the overall development of the agriculture sector. while new agricultural technologies and various innovative packages of customer friendly products and services have also been introduced. gross profit. and reduction in non. competitively and on a sustainable basis to strengthen the agriculture sector leading to success of the Bank and the farming community. Let us all join hands to be part of the green revolution and make Pakistan stronger and self sufficient in all walks of life.Zarai Taraqiati Bank Limited Agriculture sector of Pakistan has an immense potential to become a driving force to accelerate the pace of growth in the country's GDP and to achieve the Government's target to put the economy on a fast track and sound footings. 15 . Dr. MUHAMMAD SALEEM KHAN 3. Ms. RABIA SULTAN PRESIDENT ZTBL DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR CHAIRMAN DIRECTOR DIRECTOR 16 . MUHAMMAD ZAKA ASHRAF 2. Mr. MUHAMMAD JAVEED MALIK 4. ISKANDAR MUHAMMAD KHAN 5.Zarai Taraqiati Bank Limited BOARD OF DIRECTORS: 1. Mr. JAN ALI KHAN JUNEJO 8. WAQAR MASOOD KHAN 9. MANSOOR KHAN 10. MUHAMMAD ZAKRIA KASI 6. EJAZ HUSSAIN RATHORE 7. Senior employees’ compliance with coordinators can enhance their working abilities. they meet them at least one time in a week. less and poor quality furniture is provided. By developing technical education. ZTBL has a recovery ratio of 85%. Utility bills.25 billion as of 31. Branches of ZTBL are ill equipped. hajj schemes applications are being collected by ZTBL. The employees are promoted after a very long time that causes a distress among employees. ZTBL has a social network of MCOs that work in every remote corner of country.2005. 17 . Deposit system introduction can generate funds for the bank. Up till now many branches could not be brought to online system.12. It has introduced locker facility in some limited branches. which makes banking laborious and time consuming. Record keeping is poorly practiced. They have good cooperation with farmers. Weaknesses: • • • • • • • ZTBL has a less number of people who have technical skill of computer and information technology. Opportunities: • • • • • ZTBL has a great potential to serve general banking. with a nation-wide working strength comprises 5500 employees. which produces good cooperation among them. By making investment in new areas.84 billion with authorized capital of Rs. As the ZTBL has to deal with the illiterate farmers that is why it has to keep itself as simple as the farmer’s mentality. Many branches still practice their daily transaction by book. the bank can increase its progress. where any other commercial bank can’t dare to work. The share of ZTBL in total national institutional agricultural credit remains around 35%.Zarai Taraqiati Bank Limited SWOT analysis ZTBL Strengths: • • • • • • • The total assets of the Bank stand at Rs. which is very low from other commercial banks. There is no maintenance of duties by the staff. There is no availability of online record which can produces confusions among loonies. 18 . Although the recovery ratio is round about 85% but it is only window dressing and not the actual one.Zarai Taraqiati Bank Limited Threats: • • • • • Book keeping is proven to be a greater threat for ZTBL as there is danger of record loss. Their interest ratio is round about 9% per annum. Zarai Taraqiati Bank Limited ORGANIZATIONAL CHART OF OPERATIONS Operations Division Branch operations department Business development and marketing department Field operations unit 11 Field operations unit 11 Audit compliance Business development unit Marketing unit DIVISION 19 . 20 . Development of field expansion program. 8. Analyzing and identification of weak areas. 2. Develop the business plans for the bank. Enable farmers to enhance the agricultural productivity by mechanization. evaluate current product / services to maintain and enhance competitive edge on Bank products. 5. Allocate deposit targets to zonal offices and its monitoring. Develop viable business products / services and achieve business targets. 5. 4. make better provision for affording efficient banking facilities. 3. Evaluation of the performance of branches and zones. dissemination of agricultural technologies. 4. FUNCTIONS OF OPERATIONS DIVISION 1 . Control and monitor field activities. develop liability products. Improve field operations and control system. 2. Dissemination of technical agriculture knowledge. of new viable agricultural technologies. Carry out test and trial.Zarai Taraqiati Bank Limited AIM OF OPERATIONS DIVISIONS To ensure efficient and sound operations of the field organization of the bank. 7. 6. 3.Develop and market new products / services. OBJECTIVES OF OPERATIONS DIVISION 1. Support business development. Zarai Taraqiati Bank Limited ZONAL OFFICE SETUP ZONAL CHIEF ZONAL COMPUTER CENTRE PA TO ZONAL OFFICE MANAGER OPERATIONS ZONAL MANAGER SAM ZONAL MANAGER ADMINISTRATION SENIOR OFFICER OPERATION COMMUNICATION OFFICER SENIOR OFFICER SAM SENIOR OFFICER ADMINISTRATION 21 . Zarai Taraqiati Bank Limited LARGE BRANCH SETUP 22 . Zarai Taraqiati Bank Limited CHIEF MANGER VP DEPUTY MANAGER AVP ASSISTANT MANAGER OPERATIONS ASSISTANT MANAGER CREDIT OPERATIONS ASSISTANT MANAGER SAM LOAN PORTFOLIO: ABOVE 700 MILLION RUPEES 23 . Zarai Taraqiati Bank Limited MEDIUM BRANCH SETUP MANGER AVP DEPUTY MANAGER SO ASSISTANT MANAGER OPERATIONS ASSISTANT MANAGER CREDIT OPERATIONS OFFICER ASSISTANT MANAGER SAM OFFICER LOAN PORTFOLIO: 3OO TO 700 MILLION RUPEES 24 . Zarai Taraqiati Bank Limited SMALL BRANCH SET UP MANAGER AVP ASSISTANT MANAGER OPERATION ASSISTANT MANAGER CREDIT OPERATIONS OFFICER ASSISATANT MANAGER SAM OFFICER 25 . Zarai Taraqiati Bank Limited 26 . Zaka Ashraf while talking to APP here. adding loans will also be given to the growers under the 27 . the press release said adding that it has assumed the role of a green bank by adopting an environment friendly approach Agencies. GIVING LOANS ON EASY TERMS: Bahawalpur: On the special directives of President Asif Ali Zardari. This was stated by President ZTBL Ch. Zari Taraqiati Bank Limited (ZTBL) is giving loans to farmers on easy terms and conditions so that enhanced production of agricultural crops could be achieved. increasing population. as consultants to quantify and capitalize carbon credits for ZTBL Carbon Credit. it added. Realizing the challenges of the global climate changes in the 21st century ZTBL has emerged as a pioneer in the sector. decreasing farm sizes and require a paradigm shift in the approach towards the agriculture The target clients of the ZTBL are farmers. habitat loss rural poverty. Ch. Zaka Ashraf told that 10. It said that in view of changing climate patterns the agriculture sector was undergoing phenomenal changes including water scarcity. the proactive strategy has been formulated to capitalize the great business opportunity in trading carbon credit and solution to the problems of climate change. According to ZTBL press release. temperature variations. it added. The bank has made an agreement with CDBPAK. who need to be apprised about using cheap and renewable sources of energy as well as water conservation techniques to reduce carbon emission and at the same time enhancing the agriculture productivity at their end.Zarai Taraqiati Bank Limited MARKETING STRATEGY OF ZTBL: ZTBL LAUNCHES CARBON CREDIT SCHEME: Islamabad—The Zarai Taraqiati Bank Limited (ZTBL) has launched a proactive strategy to adopt all the economically viable technologies feasible for Pakistan to mitigate the effects of climate change. He said under a special package.000 tractors have been provided to the farmers while 20. ZTBL provides 90% investment to the growers And all out efforts are being made to make them self-reliant and bring prosperity to the country. low soil fertility.000 more tractors will be given to growers under Benazir Tractor scheme. Agricultural growth contributes most to poverty reduction. • • Floriculture is fast growing sub sector. Vast Majority of poor live in rural areas (nearly 80% of all poor live in rural areas). Poor are mainly dependent on agriculture for their food and livelihood security Livestock is an important of livelihood for the poor. he added. The main source of agricultural growth includes: • Dates. • • • • • • Employs 47% labor force. Earns (directly or indirectly) 70% of export revenue. He said. influencing domestic as well as export markets. 28 . Latest methods are being introduced and utilized to achieve the target. Mangoes. Over 50% of industrial production comes from agro business. Citrus and Potatoes are high value potential horticultural crops. Provides livelihood to 67% rural households. President ZTBL said that loans worth Rs. 75 billion from the defaulters. the government wanted to bring green revolution in the country. • Through forward and backward linkages. Contributes to rural economy (farm and non farm) and creates livelihood for poor in the nonfarm sector.Zarai Taraqiati Bank Limited scheme. agriculture. 72 billion will be given to the farmers while solid steps are also being taken for the recovery of Rs. As we know that the agriculture is the crucial contributor to the national economy: • Contributes a quarter to GDP. Remunerative opportunities exist for entrepreneurs in agri-business identified high return agri-businesses include: • Livestock fattening. ZTBL AND FLOW OF RURAL CREDIT: One of the marketing strategies of Zarai Taraqiati Bank Limited is the increasing flow of rural credit. NICL and National Bank of Pakistan have prepared an Agri Loan Insurance Policy properly supported and backed by the re-insurance arrangements at a reasonable competitive cost. Through this collaboration. • During 2005-06 ZTBL disbursed Rs48 billion credits and total credit 137 billion. rice and other crops growers. Accelerated growth of agriculture. Crop Insurance: The Benazir Credit Card Schemes and Crop Loan Insurance Schemes have also been introduced for the benefit of cotton. Similarly. • Cut flowers. especially of high value agricultural activities. ZTBL and micro-finance institutions. MARKETING STRATEGIES OF ZTBL: There are a number of marketing strategies of Zarai Taraqiati Bank Limited some of these strategies are listed below. but innovative solutions designed by National Insurance have made it a practical option. A large number of tractors are to be distributed amongst the farmers on very low interest rates. The ZTBL is supplying high 29 . will continue to be cornerstone of Government overall strategy to reduce poverty. Tractor Scheme: The Tractor Scheme was launched to provide tractors to the farmers at a subsidized price. agri loans of more than Rs. meeting less than one third of the total demand for Credit. Access to credit remains limited and restrictive by lengthy processes and smallholders are generally left out. • • Cumbersome legal process and lack of political will creates problem for loan recovery.Zarai Taraqiati Bank Limited • Milk collection and chilling.30 billion have been provided insurance cover. ZTBL has also been provided the facility of Agri Insurance Cover. need to increase flow of rural credit. • Fruit processing. Crop insurance Schemes have been considered an impractical dream by the insurance sector for quite long. But in ZTBL the process is too shortened and easily accessible that all the smallholders are entertained. to have maximum yields in all crops. rice. the Government earmarked Rs. And the people too became conversant with the officers and in this way they are able to know about the lending schemes. A new Agriculture Mode Village Program has been initiated in 26 villages under the auspices of Zarai Taraqiati Bank Limited (ZTBL). Crop loan insurance scheme was also introduced to enhance the access of farmers to agricultural loans. In this way the farmers can easily pay back the amount. production of almost all major crops. Through which the ZTBL officers visit the agricultural land and meet the people. This amount for the current fiscal is Rs. The installment is semiannually Which is round about 50. As a result. Provision of agricultural credit to farmers facilitated them to procure the costly inputs in order to ensure the target planting and production of various crops. moong and pearl millet. for banks to finance the farming community. ZTBL and Field Work: One of the main marketing strategies of Zarai Taraqiati Bank Limited is the field work. orchards and forestry. higher by 20% over the preceding year.000 rupees.250 billion.Zarai Taraqiati Bank Limited efficiency irrigation system to farmers to improve agricultural activity in areas of scarce water. in this way they are able to know about the forming land and also about the people. gram. rose significantly. one of the most important inputs in crop production. Availability of Quality Seeds: ZTBL decided to ensure the supply of quality seed. The objective is to organize the farming community at the village level ensuring farmers easy access to agri credit. 30 . A special project of improving vegetables seeds at local level has also been initiated. The farmers have to pay back the loan in 8 years. ZTBL provides tractor to farmers that have 10 acres agricultural land. maize. including wheat. ZTBL is also promoting hajj and umrah schemes. Agricultural Loans: During 2008-2009.260 billion for major and minor crops. The recovery of loan is on easy terms. Credit limit was increased because of rising prices of all inputs including electricity. nationalized and privatized commercial banks and Taccavi credits (ADBP. Despite progress in other sectors the agriculture sector is contributing about 25% towards the GDP. In Pakistan there are two major sources of agricultural credit. The bank continued to push forward the on-going programmes and projects relating to provision of credit and technology to targets groups covering landless. 1996). (ZTBL) consolidated and intensified its operation to play an effective role in financing of farm investments to modernize agriculture. The matter of enhancing agricultural productivity therefore largely depends on the availability of finance and credit facility available to the farmers in their respective areas (ADBL. The non-institutional credit suppliers include friends. About 67. non-institutional and institutional sources. fertilizer and modern implements but also requires liquid capital for financing harvesting. 2001). The need for farm credit in increasing production and effective utilization of farm resources is quite clear. increase farm production and raise farm income. The objectives of the study were as under: • Analyze the utilization of credit by small farmers in the study area. 1996). Zarai Taraqiati Bank Ltd. farming also requires capital. Similarly.5% of the total population lives in rural areas and the agriculture is main source for their livelihood. small farmers and rural women through its credit programmed (Government of Pakistan. subsistence. Zarai Taraqiati Bank Ltd. sufficient fertilizers and improved farm implements due To the lack of finances available to them. Every modern business is operated on capital or borrowed capital. Lack of finance is one of the main reasons for low per acre productivity in our agriculture. neighbors and professional moneylenders are the main source of credit in the country. Farming not only require credit in the form of improved seeds.Zarai Taraqiati Bank Limited BUSINESS PROCESS ANALYSIS: ZTBL AND PRODUCTIVITY: ENHANCEMENT OF CROP The economy of Pakistan is predominately agrarian in character. Majority of our farm community comprised of subsistence farmers who are not in a position to use high quality seeds. 1996). About 44% of the labor force is engaged in agriculture sector and about 70% of the direct and indirect income is generated from this sector. (ZTBL). Institutional sources comprise of cooperative banks. The agriculture sector is multi-segmental. haulage of produce and other similar farm operation (ADBP. 31 . 2830. While in case of non-beneficiaries it was 144.6 maunds. 7695. respectively on per acre basis.. respectively on per acre basis. and Rs. and Rs.4 maunds. After a considerable lapse of time. 39. respectively on per acre basis. 11863.54. respectively on per acre basis.2 maunds and 135. While the remaining amount i.93 maunds.15% was mis-utilized.75. While beneficiaries without credit it was Rs. Rs.5 mounds. Paired sample t-test was used to compare the production and income of the beneficiaries without credit and with credit. Rs. The executive management has managed to successfully convert the highly demoralized non-productive HR workforce into 32 . maize and onion were 170.4 maunds (1 maund equal to 50kg). respectively.4 maunds and 152. On overall basis beneficiaries’ farmer utilized 78. ZTBL AND BUSINESS SCHEMES: ZTBL (Zarai Taraqiati Bank Ltd) formely known as Agriculture Development Bank of Pakistan has been struggling since the last couple of decades to optimize its operational efficiency. Independent sample t-test was used to compare the production and income of beneficiaries with non-beneficiaries. Suggest measures as to how the present credit scheme can further be improved. wheat. wheat.3 maunds.5. 24. Rs. 3908. 10968. 18. There has been tremendous pressure both by the State Bank of Pakistan and BOD to design and implement an effective Enterprise Resource Planning (ERP) system using Information Communication Technology to enhance Regulatory Compliance. The present study was conducted to examine the utilization and effects of short-term credit from Zarai Taraqiati Bank Ltd. 19.21. 6600.7 maunds. 2195. 21. 13465. and Rs. respectively on per acre basis. Net return of beneficiaries with credit for tomato.17410.88. 5981.17. In case of beneficiaries without credit it was 139.15.84% of the amount of credit for the purpose it was received. 30. 13616. Rs.3 maunds and 130.67. Rs. ZTBL has experienced in the last two years a most productive growth. Rs.Zarai Taraqiati Bank Limited • • Compare the effects of utilization of credit on crop production and income of beneficiaries without credit and with credit. Per acre production of beneficiaries with credit for tomato.85. offer better KPI monitoring and improved real time Management Information System enabling the Bank to launch new ICT based schemes/products for farmers and HR Performance Management System. Eighty respondents were selected in which forty were the beneficiaries of ZTBL and the remaining forty were the nonbeneficiaries selected from the same area. 16450. (ZTBL) at Tehsil Kabul area of district Swat in August 2003.6 maunds.9. In case of non-beneficiaries it was Rs.9. maize and onion was Rs.25 maunds.e. 32. ORACLE University is currently conducting a two and half months long rigorous training program for more than 120 bankers. The efforts of the ISD development team towards the successful modification of the architecture of the legacy loan processing system has resulted in effectively conserving more than twenty years of continuous business processes improvements of investment. Through the newly revamped productive HR workforce the Bank has posted an overall 1. designed and developed an integrated end to end loan processing system by 33 . In this regard. For example in the past the Branch office staff conducted business manually and then hardcopies of the transaction data was manually fed into the system on a weekly basis at the zonal offices. There had been numerous monitoring. Due to this process. ISD has enabled the field offices to run real-time online processing jobs centrally running on the servers at Head Office Data center. In order to fulfill State Bank regulatory compliance with reference to the maintenance of NADRA verified client records. Through the successful modification in the architecture of the existing legacy system. recovery and/or release of installments under products like regular loan. The Bank has selected ORACLE ERP in order to revamp the entire BackOffice operations. Upon completion of the data entry of all branch offices within a zone was completed. This improvement now offers the entire portfolio of products and services to the branch offices.6 billion rupees in profits. The Information Systems Division has been reorganized and revamped through the induction of highly skilled and seasoned human resource and has enabled the bank to do on-line loan processing using the bank’s own newly established Wide Area Network (WAN). ISD has successfully conceived. the Zonal office would then dispatch the consolidated data on tape cartridges through courier services to the head office. The Branch staff can now entertain loan processing application. reporting and performance management issues just because of the fact that HO was not able to have complete digitized record of business transactions. White revolution etc on the terminals in the branches.Zarai Taraqiati Bank Limited productivity mode. at Times considerable delays were experienced by the Bank for the compilation of consolidated nationwide bank position. This radical new development in the Bank’s ICT infrastructure has offered tremendous operational efficiency. The newly revamped Centralized loan processing system would now enable the bank to improve the operational efficiency tenfold with an overall reduction of operational expenses.. Sada Bahar. Zarai Taraqiati Bank Limited mapping the ZTBL loan processing system to NADRA data base with a further integration to the State Bank of Pakistan’s eCIB database. MUHAMMAD ZAKA ASHRAF on the meeting held at head office before European Union delegates. He said that ZTBL was poised to play more proactive role for the development of agriculture sector and alleviate rural poverty.73. developed and implemented Deposit Management System at Branches as an extension of loan processing system. recovered Rs. checked for credit worthiness from the State Bank. EUROPEAN UNION AND ZTBL: ZTBL was poised to serve the technical needs of the entire community. Since a few months ago. Most modern database management system is being used to digitize the existing semi manual deposit management system.6 Billion profit before tax.56 Billion to Rs. 2008. all records would now be verified by NADRA. 34 . if not impossible as the entire physical record was available in the branches and there was no interface even at Zonal offices to verify physical record with computerized loan processing system. Deposit Management system. NADRA verification and Customer Credit worthiness are all seamlessly integrated together.5 million farmers and hoped to extend its outreach to strengthen the agriculture sector. and earned Rs4. This would have lasting impact in modernizing and boosting agriculture sector for the country. ISD has also designed. With the deployment of the new system. The president said that through its countrywide network the ZTBL being the largest financial institution has achieved the highest landmarks of performance during the last two years as it increased its disbursements from Rs. It has been planned that by the end of June.8. The Bank took lead in serving over 0. more than 250 branches would be equipped with necessary hardware with preinstall DMS and NADRA verified clients from on-line processing system. Also the Loan processing system. Data Cleansing in conformity to SBP and ZTBL business procedure was conceived as difficult. It was said by president ZTBL. NADRA and SBP-CIB system. This has given financial strength and viability to the bank. DMS has been designed to allow the bankers to post transaction themselves by using most modern concepts like photo and signature verification on the screen. He further appraised that code of corporate governance and control system has also been implemented.77 Billion. the company will bring equipments for demonstration at their own cost and expanse. the president ZTBL Ch Muhammad Zaka Ashraf expressed the hope that the agreements would a long way in promoting the agriculture in the country besides benefiting the farmers.Zarai Taraqiati Bank Limited CHINESE FIRM AND ZTBL: China would introduce alternate energy technology for agriculture development in Pakistan that would facilitate the farmers to meet their energy needs through alternate resources in cost effective manner. Most recently ATBL has inked an agreement with Chinese firm Ms Xi` an Hong Yuan equipment in Islamabad. 35 . Speaking on the occasion. Under the agreement. They will make demonstration of their own Equipment to introduce new technologies and make available for the forming sector. On successful demonstration the product will be marketed through kissan support services. 1 percent higher than the allocation of the preceding year i. Rs 80 billion were allocated to commercial banks. The most important unresolved issue is its excessive debt liabilities as well as shareholding pattern. The allocations. needs financial and operational restructuring. Rs 48 billion to ZTBL. Zarai Taraqiati Bank Ltd. The fourth specialized government-owned bank. are totally voluntary and indicative in nature as the mandatory allocations policy has been totally phased out and the allocations for commercial banks have also been made indicative. Commercial Banks. The elimination of mandatory credit allocations coupled with active involvement of commercial banks in agricultural finance is major milestone achieved towards mainstreaming of Agricultural finance in the country’s financial system. however. (ZTBL).e. This bank is highly strategic. The flow of necessary funding to the sector will now be ensured through conducive policy and regulatory environment.. In order to cope with the Agriculture increasing demand for agricultural credit. policy advocacy and promotional initiatives and monitoring of agri-disbursements and portfolio build-up plans. Rs 130 billion. The agricultural loans extended to the farming community during July-March. The Government has allocated Rs 160 billion for agriculture credit disbursements for the year 2006-07 which is 23. 2006-07 are discussed below: 36 . pesticides and mechanization. Different public sector approaches have failed in the past to transform ZTBL. Out of the total Credit target of Rs 160 billion. Agricultural Credit: Credit requirements of the farming sector have been increasing over the years mainly due to the rise in the use of fertilizer. and Rs 23 billion to Domestic Private Commercial Banks.7%) of all credit to the agriculture sector. SBP has proposed that the Government should pave the way for its eventual privatization.Zarai Taraqiati Bank Limited COMPETETIVE STRATEGY OF ZTBL COMPETETIVE STRATEGY: The strategy by which the organizations producing same or substitute products compete with each other. Punjab Provincial Cooperative Bank Ltd (PPCBL) and Domestic Private Banks. considered to be critical for augmenting its scale and efficiency. Rs 9 billion to Punjab Provincial Cooperative Bank Ltd. as it provides about one third (31. institutional credit to farmers is being provided through Zarai Taraqiati Bank Limited (ZTBL). 149 billion disbursed during corresponding period of last year. thereby registering an increase of 15 percent. an amount of Rs 9. 2006-07) while it was 31. This will facilitate to cater for purchase for inputs during peak sowing season of both Rabi and Kharif Crops with the collaboration of Provincial Governments. ZTBL has disbursed loans of Rs. 0. 30.8 percent of the total agricultural credit disbursed during July– March 2006-07. During (July–March. it was 46. Their land record is entered and loans are sanctioned at focal points whereas payments are released on the very next day from the concerned branch. During July-March.8 billion were disbursed during (JulyMarch. Supply of agricultural credit by various b) Loan under One Window Operation: ZTBL has launched a one-window operation to enhance credit facilities particularly to small farmers.8 percent during the same period last year. While the share of PPCBL has also slightly increased as it stood at 5 percent in supply of total agricultural credit by institutions. Under this scheme credit requirements for inputs for the whole year is assessed and made available to the borrower. the ZTBL launched Sada Bahar Scheme (SBS). 2006-07). 2006-07) as against Rs. d) Credit to Women Program: 37 . Revenue Officials and Postal Authorities. 24.912 billion under Revolving Finance Scheme (RFS) and Sada Bahar Scheme (SBS) as against Rs. indicating an increase of 28 percent. poultry and fisheries.9 percent during (July–March.Zarai Taraqiati Bank Limited a) Production and Development Loans: Agricultural loans amounting to Rs.069 billion has been disbursed under this scheme. The share of ZTBL in supply of total agricultural credit by institutions increased and was 32. 104. The Managers are authorized to sanction loan up to Rs. However. 2006-07. the share of Commercial Banks has surpassed the share of ZTBL. it was 15.3 percent as compared with 12 percent in the corresponding period of last year. c) Revolving Finance Scheme/Sada Bahar Scheme: For providing timely input loans for crops and working capital for dairy.2 billion during the corresponding period last year.91. The share of domestic private bank has increased. Agriculture Pass books are issued at the spot to intending new borrowers.5 million. Agriculture and Livestock (MINFAL) and Zarai Taraqiati Bank Limited (ZTBL) have launched. 17 FMCOs are exclusively looking after credit needs of women in 17 branches of the Bank. water saving devices and modern agricultural technology. Presently. whereas female borrowers may also obtain loan through male MCOs throughout the country. 2006-07) loans of Rs. The project aims at assisting the farmers to increase agriculture production.Zarai Taraqiati Bank Limited The major objective of this programme of ZTBL is to make credit more accessible to rural women through Female Mobile Credit Officers (FMCOs).403 million has been disbursed during July–March. All loans are recovered within 18 months of their advancement. During (July– March. 2006-07. Farmers owning up to 25 acres land are entitled to receive loan from project credit line through Mobile Credit Officers. To prevail in the industry Zarai Taraqiati Bank is • Reviewing the actual behavior and conduct of banks related to its structure and than taking the required actions. ZTBL is focusing on continuing to broaden and deepen the financial system further. “Crop Maximization Project”. ENHANCING THE COMPETETIVENESS: To enhance the competitiveness. e) Micro Credit Scheme: Under the Micro Credit Scheme of the ZTBL. Under this project Rs 371. Village Organization (VOs) have been established which organize the farmers and assist them with the collaboration of Agricultural (extension) Staff in achieving the maximum productivity through proper use of inputs.572 million have been disbursed under this programme. • Resisting contestability. In the project villages. 99. all the Mobile Credit Officer working in the branches process micro credit cases both for men and women to engage rural poor in income generating activities/cottages industries. women can meet their credit needs through both Micro Credit & General Credit Scheme. A total of 109 villages are being covered under this project. Under Credit to Women Program. Ministry of Food. f) Crop Maximization Project: In order to augment the efforts of the Government to enhance productivity on sustainable basis. • Development of non-bank financial intermediaries is promoting competitiveness 38 . Financing under this program is provided for 136 loanable items. Ninety percent of deposits are remunerated through profit and loss sharing arrangements rather than at explicit interest known to the depositor in advance. The domestic private banks fared well both in disbursements and in the recoveries while specialized banks could not maintain their market share. To improve transparency in the pricing and documentation of loans. A strong resurge in the number of borrowers is also a welcome development during financial year 2008. The main thing to say is that about 25% of this agricultural credit is taken from Zarai Taraqiati Bank Limited. • • 39 . But in ZTBL the interest rates are known to the depositor in advance. ZTBL has been barred from including any clause in the loan documents that could allow them to change lending rates unilaterally and make Explicit all service charges so that the borrower will not incur hidden charges during the term of the loan.Zarai Taraqiati Bank Limited • • Increase demand for advances results in a need for higher deposit mobilization which increases competition. The structural changes in agricultural credit are shown below which manifests that the major share of agricultural credit is received from specialized banks and ZTBL is the leading one. Growth in agricultural credit recovered in financial year 2008. the bank is on the way to success. 250 billion. That is a good competitive strategy and due to this strategy. Interest rates in Pakistan are usually non-transparent.28 million during financial year 2008 as against a declining trend in the previous three years. rise in interest rates amid monetary tightening. after a relative slowdown in the preceding two years. The agricultural credit disbursements rose to Rs. The number of borrowers increased to 1. up by 25. Despite. 211 billion in financial year 2008.4 percent. a significant increase in agricultural credit and number of borrowers during financial year 2008 is principally attributed to 5 Agricultural credit disbursement target for financial year 2009 is set at Rs. Zarai Taraqiati Bank Limited 40 . New Knowledge Acquired • • • • Discussion with management. • . How the loan given to the employees. Company uses both system of manual and computerized so account manager give me the opening and closing balances of last month inventories to check the posting that manual entries into the system.Zarai Taraqiati Bank Limited Learning as an internee Duties • Reconciliation of bank statements. This is the core part of my fresh knowledge that I gained while working in the Bank. Accounts management. 41 . • • • • Reconciliation of customer’s ledgers. Knowledge of organizational culture. Preparing payment vouchers. I calculate the working days of employees and last year and the prepare bonuses for the employees and allowance to employees to have full attendance last year. I check them and point out some missing entries and give my report to account manager that which entries are missing. Got an opportunity to work in a well known organization. Through this internship experiences of working into an organization help me to understand rules and regulations. Completed all of my duties on time. Improved my confidence and communication skills by talking to advisor and other managers. All the departments are working properly. Analyzing competitors and markets that any one doesn’t copy your product. getting their views. working environment is very good after spending 6 weeks in Finance department of the Zarai Taraqiati Bank Limited Interacting with the employees. I have learned about. • • • How to let people know about your product/ services. every thing in the organization is outstanding.Zarai Taraqiati Bank Limited Accomplishment • • • • • The overall working environment was very good in which I learned a lot. duties during my career. so my experience as an internee in this company will help me in future when I get the full time job as a professional. Learn about effective information dissemination within office environment. Impact of Experience on my Career As I am a student of Public Administration. Conclusion. observing the organizational structure and design. some of the following recommendations have been given. 42 . Suggestions and recommendations Zarai Taraqiati Bank Limited is a well known well reputed and well established organization in Pakistan. T should be given to all the employees. dealing with people.Zarai Taraqiati Bank Limited Conclusion I will conclude my report by saying that my training program at Zarai Taraqiati Bank Limited was a mighty experience. as it is necessary to the company benefits. getting the how know of the working of organizations and the intricacies of practical life. Such an experience is a necessity for every business student as it helps one in choosing the area of work to adopt in professional life. These problems are: • Transportation facility is not provided to the whole employees. This training program sets a strong basis for students about to enter professional life to do the correct career counseling for themselves in accordance with their ability to integrate work with knowledge. internet. in terms of learning. spectacular developments in information technology. • Proper training of I. Adaptation of globalization. their learning capacity and the ability to sustain pressures. it should be provided to them. 43 . • Training and awareness of personnel in all sectors and at all levels is required to face the future challenges. e-commerce etc is required. Suggestions Zarai Taraqiati Bank Limited is a huge name in the agricultural sector and a large number of loans are provided to the agricultural sector by the Zarai Taraqiati Bank Limited but I experienced some problems that should be encountered. Managers are required to get training in the modern scientific management control methods. • 44 .Zarai Taraqiati Bank Limited Recommendations • Top managerial personnel should be trained both at company premises and at the international level. COM.Zarai Taraqiati Bank Limited BIBLOGRAPHY WWW.ZTBL.PK AUDIT REPORT 2008-2009 ANNUAL REPORT 2008-2009 45 . GOOGLE .PK WWW.COM.