INTERNAL CONTROL
To me the major and the most important flaw in the BOP is lack of internal controls and inter communication between different branches of the bank. As far as financial aspect is concerned there is no proper system is configured that’s why there is always a risk of big frauds with in the bank. I during my internship also pointed out that point but no one bothered. To me the bank should install some proper resource planning and controlling systems like other banks do i.e., oracle financials etc.
PROFESSIONAL TRAINING
BOP staff lacks professionalism. They lack the necessary training to do the job efficiently and properly. Although staff colleges are in all major cities of the Punjab but they are not performing well. For this purpose these staff colleges should be reorganized and their syllabus should be made in such a way which can help the employee understand the ever-changing global economic scenario.
Banking council of Pakistan should also initiate some programs to equip the staff with much needed professional training.
DELEGATION OF AUTHORITY
Employees of the bank should be given a task and authority and they should be asked for their responsibility. The sense responsibility in employees mind is one of the most important factors in the success of any organization.
PERFORMANCE APPRAISAL
During Internship I felt that there is no or very less appraisal of any ones cool performance. The manager should strictly monitor the performance of every staff member. All of them should be awarded according to their performance and result in the shape of bonuses to motivated and incite them to work more efficiently.
TRANSFERS
Transfer is not properly carried out. Some of the employees are continually serving at the same post. They are simply rotated at the same branch. Therefore it is
recommended that evenly rotation of every employee should take place after every three years in different braches of the bank.
NEED OF QUALIFIED STAFF
Required, qualified staff should be provided to branch in order to improve the functioning of the branch. Especially a telephone operator should be appointed
CREDIT CARD FACILITY
BOP should start its operation in credit card. These cards are very helpful for the ordinary customer in general and the business people in particular. To make it mores secure and to eliminate the misuse of it, the management is required to keep proper security against the card.
DECREASING ADMINISTRATIVE EXPENSE
Bank should decrease their administrative expenses. This was Rs 2.25 billion in the year 2007. That can be done by lying off the surplus pool of employee with golden hand shakes scheme. The branches that are not much used could also be closed. That will give positive results in the future
SHOULD BE AGGRESSIVE IN CREDIT POLICY
As mentioned earlier, BOP is very conservative in advances and loans policy. It reduces the investment opportunities. Also loans should be given to the small businessmen and the other businesses on large scale like in agriculture sector at the low mark-up rate. It should adopt flexible credit policy while giving credit to the agriculture sector.
TECHNOLOGICAL IMPROVEMENT
I would like to suggest that at least all the main branches of BOP should be fully computerized in order to expedite the dealing process among bankers and their customers. Every department should be provided a computer with adequate training (especially Advances, Deposits and Foreign Exchange departments). Daily records should be entered directly into these computers,
(instead entering the overall daily transactions after the banking hours). It will not only reduce transaction time, will increase accuracy but will also be efficient as well.
Not only it will be economical but will also reduce the extra burden of work of the bank. It will also help in reducing the use of excessive paper work.
STAFF RELATIOSHIP
Good relationship among staff member leads to the peak performances in any organization. I observed that the staff relationship was normal other wise but some time I noticed that there exists little conformity among the staff members. Another syndrome from which the staff suffered was that all of them considered themselves more important than others.
FAVOURITISM & NIPOTISM
In the branch during my internship I saw that when some of the employees are transfer to other places, due to their relation with influential people and with top management they can cancel their transfer in few weeks, when they are unsatisfied at that place.
So I suggest that in the organization there should be no favouritism, nepotism and politics and their transfer and promotion should be made on merit and according to
the rules and regulations of the bank and provided favourable environment to the employee to show their performances.
MARKETING POLICY
The branch should adopt various marketing strategy and promotion strategy to promote the bank and its product.
The most important in my opinion is personal marketing; it is the most effective of all when you think in term of branch level. But on the whole organization level, they should arrange the seminar with in the bank and outside the bank. They should do more advertising through newspaper and media and through channel of personal contacts.
AVOIDING BAD DEBTS
Great care should be taking while extending the loan. Loans should be awarded against reasonable securities, where market value should be equal to the loan granted. Policies should be crafted in a way to ensure that no loan is extended on political pressure. SBP regulation for loan approval should be strictly followed. According to which the current ration of borrower’s business must be 1:1 and the debt to equity ratio should be 60:40, means the liquidity position of business should be healthy.