The Bank of Khyber (Internship report) Chapter-4

CHAPTER 4

DEPARTMENTATION

Departmentation is the logical process of grouping of activities, or the process of grouping jobs in a logical arrangement through which the organizational goals or objectives can be achieved. It is also the process of division of work into various sections or departments or divisions, over which a manager has authority & responsibility for performance of specified activities. Basically there are four ways for organizational departmentation.1

i)                    Departmentation by function

ii)                  Departmentation by product

iii)                Departmentation by geography

iv)                Departmentation by customer

The departmentation in The BOK has been done purely on functional basis, in the following manner:

DEPARTMENTATION AT HEAD OFFICE LEVEL

The BOK’s H/O is located in Peshawar, and it has complete control over administrative matters and operations as well as other areas of the BOK.

Personnel, Training & Establishment Division

This division performs the following tasks:

·          Recruitment & Selection

·          Training

·          Supervision

·          Postings

·          Promotion

·          Leave & other staff matters

·          Motivation

·          Termination

While the Establishment Division deals with procurement, repair/renovation and disposal of real assets of the bank, the purchases are made against demands of various departments through open bidding. The contracts are given to an agency, which provides the best quality products at competitive rates and the delivery is made according to schedule. If the asset is depreciated according to the set percentage and it is no longer feasible to use it, then the asset is disposed of through an open auction.

The Establishment Division deals with buildings, furniture/fixtures, vehicles, computers and many other items, which are related to the bank or its staff.

Banking Operations Division

This division constitutes:

·           Teller’s Operation

·           Cash Management

·           Remittances

·           Bills

·           Advances

·           Consolidation & Statements

·           Hajj Operation

·           Special Deposit Schemes

·           Travellers Cheques, Credit Cards etc.

Treasury Division

Treasury Division is involved in investments in the shares market, bonds, debentures, placement of funds & reconciliation of Nostro accounts (Foreign Currency Accounts maintained in foreign countries in respective currencies). The settlement of trade finances, inward and outward remittances, through Nostro accounts is made possible by the treasury division.

Audit & Inspection Division

This division is known as the eyes and ears of the top executives of the bank .It keeps them informed of any contravention of bank regulations by any branch/department or the staff and also proposes remedial measures to set it right. In the BOK there are three types of Auditing, i.e. Internal Audit, External Audit and SBP Audit.

Internal Auditors are assigned to make comprehensive audit on yearly basis of all branches. A separate team of Audit Division is deputed to make sure the compliance of all irregularities, pointed out during their inspection.

The Board of Directors of The BOK has appointed External Auditors for comprehensive audit of all branches on yearly basis. The BOD of The BOK has to appoint any Chartered Accountants from the approved list of The SBP. Since they are external auditors and approved for SBP, therefore they prepare all the financial statements of The BOK.

Since SBP is the central bank of the country and it has a right to carefully monitor all the activities of all banks, therefore they also conduct their audit in The BOK on a yearly basis. In case, any bank violates “Prudential Rules & Regulations” of the SBP, SBP reserves the right to penelize such banks. In case of any major violation, they may dissolve the management of any bank. The compliance of irregularities are made sure by them as well. 

  

Credit Division

This division is engaged in providing Fund Based & Non Fund Based facilities to customers of different branches. They receive proposals & recommendation from their branches along with application requests of their customers. Then they prepare aggregate proposals for further submission to the Credit Committee, where these proposals are discussed thoroughly and final decisions are made by the competent authority. They sanction loans proposals and forward the same to relevant branches with instructions to retain proper security, offered by the customer and retain all legal documents to safe guard the bank’s position. Any activity related to facilities may also be altered by this division.

Computer Department

The BOK has appointed some qualified software and hardware engineers in The BOK IT department. The senior most is deputed as “In-charge” of the IT department. Software engineers/programmers are not only responsible for application development in The BOK, to fulfill requirements of the bank, but also act like trouble shooters, whereas, installation of the hardware in the branch set up is the responsibility of hardware engineers. In each branch, they have assigned a systems administrator to look after jobs related to the computing system. Proper trainings have been provided to system administrator in this effect. 

Micro Finance Division

The operations of the Micro Finance department at the branch level are watched carefully by this division. MFD is exclusively designed to approve loans on a small scale to small units like, toy shops, garment shops, and stitching centers run by women.

  

Public Relations Department

It establishes a liaison between public sector organizations and corporate customers with the bank on behalf of the management of the bank.

International Banking Department

This department carefully looks after the business transactions and activities of all the branches which are authorized in the Foreign Exchange Business, like Trade Services and Finances, Foreign Currency Accounts, Remittances, Travelers Cheques issuance and FOBC (Foreign outwards Bills for Collection). The details will be discussed in analyses section of the report.

Islamic Banking Division

This division looks after PLS banking and other Islamic modes of financing. This department does research in Islamic banking and conducts training courses for the staff.

Consumer Finance Department

This department facilitates the common masses in getting all kinds of electrical house holds items, like televisions, microwaves, ovens, air conditioners, tape machines, music systems & refrigerators. This facility may be allowed against a personal guarantee of a single individual.

Marketing   Department

Banks are aware of the fact that marketing and advertising are very important for the healthy growth of all organizations including banks. Advertisements are meant to get the attention of a segment of the society which is the bank’s target. This is done through the following:

·         News papers/periodical/journals.

·         Radio & T.V

·         Out door boards/sign boards

·         Gifts with the bank’s name printed on them like key chains or wall clocks.

.

 THE BANK OF KHYBER MINGORA BRANCH OVERVIEW

INTRODUCTION

Mingora branch is one of the important branches of BOK.  Because it is one of the richest districts in N-W.F.P.  It performs all the function of the commercial bank, from deposits to advances, remittances etc.The site of the branch is very suitable; it is in the middle of twins cities Mingora and Saidu Sharif...

Building of the branch is not too big to accommodate the staff and clients comfortably.  However, the branch Manager Mr.Mehboob-ur-Rehman and the other staff are so active that they deal the clients efficiently, politely, and in a congenial atmosphere.  During the internship period in the branch, they gave me too much respect and guidance to learn more in the field of banking, general correspondence, and customer dealing.

---