Download - Agricultural Banking of Pakistan
-
7/29/2019 Agricultural Banking of Pakistan
1/28
Agr icul tural Banking of Pakistan
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 ALLAHS unity and His attribute as well as for
harnessing the material manifestation of the world to the mankinds 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.
We would like to express my gratitude and appreciation to all those who gave me the
possibility to complete this report. A special thanks to our Course instructor Mr Ahmad
Imran whose help, stimulating suggestions and encouragement, helped me to coordinate my
project especially in writing this report.
We take this opportunity to express my profound gratitude and deep regards to my guide Mr
Ahmad Imran for his exemplary guidance, monitoring and constant encouragement
throughout the course of this thesis. The blessing, help and guidance given by him time to
time shall carry me a long way in the journey of life on which I am about to embark.We also take this opportunity to express a deep sense of gratitude to Syed Amjad Ali Gillani,
Manager, ZTBL, for his cordial support, valuable information and guidance, which helped
me in completing this task through various stages.
A special thanks goes to my team mate, Mr Muhammad AwaisIqbal, Mr Kamran
Saqib,WajeehaShafqat , who help me to assemble the different aspects of the report.
I am obliged to staff members of ZTBL, for the valuable information provided by them in
their respective fields. I am grateful for their cooperation during the period of my assignment.
-
7/29/2019 Agricultural Banking of Pakistan
2/28
DECLARATION
We hereby declare that the project work entitled
Agricultural Development Banks of Pakistan
Submitted to the Institute of Management Sciences , is a record of anoriginal work done by
us under the guidance of Mr Ahmad Imran, Course Instructor Money & Banking , and this
project work is submitted in the partial fulfilment of the requirements for the completion of
the course Money and Banking.
-
7/29/2019 Agricultural Banking of Pakistan
3/28
Executive Summary
Banks play an important and active role in the economic development of country. If the
banking system in a country is effective, efficient and disciplined, it brings about a rapid
growth in the various sectors of the economy such as agriculture, industrial, and the SMEsectors. If the banking system is unorganized and inefficient, it creates maladjustments and
impediments in the process of development. In Pakistan, the banking system is very well
organized. The SBP established on July 1st, 1948 stands at the apex and is responsible for the
operation of the banking system in Pakistan. The other banks such as commercial, specialized
or unspecialized banks which form the banking structure in the Pakistan are playing an active
role in the
ZTBL has provided many products and services for their customers. The product and
services of the ZTBL can raise the living standard of rural areas and develop the agriculture
sectors of a country as well. The Pakistan is an agriculture country and the products and
services of the ZTBL plays very important role in increasing the GDP and accelerates
economic growth. For this purpose, the ZTBL provides many facilities for their customers,
such as provides schemes and loans, obviously help the customers to invest money in their
businesses, to get maximum profit from it and to pay low interest rates.
Banking is one of the most sensitive businesses all over the world. Banks play very important
role in the economy of every country all over the world and Pakistan is no exemption. This
report is about one of the leading Agriculture Bank of the Pakistan known as
ZaraiTaraqiatiBank Limited. ZTBL is playing its one of the most important role in thedevelopment of the Agriculture Sector of the Pakistan. On 14thDecember 2002, under the
ordinance of the Agricultural Development of the Pakistan 1961, ZTBL was incorporated as
Public Limited Company. This Bank severs its venerated customers in the form of different
customized products. It is providing both type of severs financial and non-financials mostly
to its clients of the rural areas of the Pakistan, which comp rises of 68% of the Pakistans total
population. The bank has country-wide network in the form of 349 branches and is severing
round about half of the million clients annually and over accumulated account holders with
the average loan size of around Rs.89, 000 serving 65%, 31% & 4% of subsistence, economic
and large growers respectively.
-
7/29/2019 Agricultural Banking of Pakistan
4/28
Agricultural Banking
The agricultural banks (specialized banks) are set up to provide financial assistance to the
agriculturists. The agriculture banks provide short-term credit to the farmers for the purchase
of seeds, fertilizers, pesticides, fuel.etc. They also make medium term advances for buyingtractors and introducing modern techniques in farming.
The role of agriculture in Pakistan economy is of pivotal nature. Due to diverse geographical
and climatic conditions, the country has tremendous potential for agricultural growth and
development Agriculture and Rural Business Division (ARBD) has gained further strength
with improved and efficient delivery and control mechanism for meeting increased demand
for credit by the farmers in easy, accessible and affordable manner. With an innovative
product range, being best rated in the market, many banks are continues to surpass its
allocated targets for agriculture financing.
While focusing on business development, this unit also achieved further refinement in
back office processing including credit initiation, operations, risk management, in line with
the business dynamics and regulatory framework. ARBD has extended to 89 branches across
the country and remains proactively engaged with its stakeholders for aggregation of services
and improving life standard of farmers through its distribution network.
Pakistan is basically an agricultural country, and finance has been needed for its rapid
development. With a view to meet this basic need the Agricultural Development Finance
Corporation was set-up in 1951, and was entrusted with the task of providing financial
facilities for the development and modernization of agriculture, including:
Forestry Fishery Animal Husbandry Poultry Dairy Farming
Later on the Agricultural Development Bank of Pakistan was also established in
September 1957, under the Agricultural Development Bank Act. The Bank is to provide
credit in cash or in kind, warehousing and storage facilities to agriculturists, cooperative
societies and other bodies, of which the majority of members are agriculturists. As the
functions of the Agricultural Development Finance Corporation and Agricultural
Development Bank were similar and since both were working with capital provided by the
Government, they were merged into one organization known as Agricultural Development
Bank of Pakistan on February 18. 1961. The Agricultural Development Bank of Pakistan is a
banking company for the purpose of the Banking Companies Ordinance and the State Bank
of Pakistan Act.
-
7/29/2019 Agricultural Banking of Pakistan
5/28
INTRODUCTION
History of the Bank
Pakistan is one of the agricultural country, about 75% of its population is directly or
indirectly associated with agriculture. Due to its widespread and extensive canal system, its
land is very fertile. The Agricultural Development Finance Corporation was steeped in 1951,
keeping in view the need of finance to rapid development of agriculture sectored. It also
provides financial facilities for the development and modernization of agriculture, including
forestry, fisher, animal husbandry, poultry and dairy farming. Under the Agricultural
Development Bank Act, the Agriculture Development Bank of Pakistan came in being in
September 1957. Under this Bank, the agriculturists, co-operation societies and others were
provided the facilities of credit in cash, warehousing and storage. Agricultural Development
Finance Corporation and the Agricultural Development Bank were similar in function and
government provides capital to both of them. Later On February 18, 1961, due to their similarfunctions these both came under the single banner of Agricultural Development Bank of
Pakistan. Agricultural Development Bank of Pakistan (ADBP) Under the ADB Ordinance
1961, the Agricultural Development Bank of Pakistan (ADBP) was established originally.
Then, ADBP was reorganized into a public limited company, with the purpose of ensuring
better governance and the provision of high quality financial services to its rural clientele.
Then all assets, business, contracts and liabilities of ADBP were taken by theZaraiTaraqiati
Bank Limited (ZTBL and on December 14, 2002 and started its countrywide operations as a
public limited banking company. The ADBP had than become the single largest institution in
the country catering to be viable credit need of the agriculturists and in disbursing over PRs.
5000 million per annum for the development and modernization of agriculture.
Evolution and Conversion of ADBP into ZTBL
Agriculture Development Bank of Pakistan (ADBP) was converted into ZaraiTaraqiati Bank
Ltd (ZTBL) by the Federal Government and it started its operations with profound effect. It
was restructured accompanied with new board of directors and was titled as public limited
company. Its aim under the presidential ordinance was to ensure good governance, autonomy,delivering high quality, viable and timely financial services to a greater number of clientele in
the agricultural and rural segment of the country with adequate return to the stake holder. In
1984Zarai Taraqiati Bank (ZTBL) under the companys ordinance was registered with SECP
as a public limited and by virtue of finance order, all assets, liabilities proceeding undertaking
of theADBP stands transferred to and vested in ZaraiTaraqiati Bank with effect from
December 14, 2002.The conversion of ADBP into ZTBL had a conditionality of the Asian
Development Bank (ADB) loan framework as per which a restructuring exercise was
initiated. The restructuring process entailed ADBs Rural Finance Sector Development
Program (RFSDP) with the objective to transform ZTBL into a sustainable Rural Finance
Institution. It also included the up-gradation of Information technology (IT) infrastructure for
-
7/29/2019 Agricultural Banking of Pakistan
6/28
which funds from ADBs loan were to be utilized. As part of the overall organizational
revamping strategy, the bank has taken several initiatives to enhance its lending activities
while adopting a prudent approach with regards to credit quality. Kisaan Support Services
(Pvt.) Limited (KSSL), a subsidiary of ZTBL, has been engaged to sell fertilizer to farmers at
subsidized rates, while a Memorandum of Understanding (MoU) is signed between KSSLand Pak Arab Fertilizer to ensure timely availability of agricultural inputs. The main aim
behind the restructuring of ADBP and its conversion into ZTBLis extend swore credit to the
needy segment of highly productive and yielding Agri and non-farm activities. It was done
keeping in the mind that this step shall greatly add to the credit distribution mechanism.
National Operation The ZaraiTaraqiati Bank Limited runs its operation in whole Pakistan and
also outside Pakistan and the persons conducting such business. The banks total manpower
is 7665 having 4515officers and 3150 staff. It has 49 regional offices and 342 branches
throughout the Pakistan including the Federally Administered Tribal Area (FATA), Federally
Administered Northern Area (FANA) and Azad Jammu and Kashmir. ZTBL while
completing its period of 42 yearsoperational activities tried to serve the forming community
through the country for their medium and long-term development credit needs
organizationfirst the head office of the ZTBL was located in Karachi and was shifted to
Islamabad later during 1973. Presently there are 9 division and 33 departments in the head
office. It has 49regional offices and 343 branch offices apart from 8 audit directorates in the
field, two staff colleges at Islamabad and Karachi. To cater for loan requirement of the
forming community at their door steps over 1408 Mobile Credit Officers have been deployed
in the field, each covering25 villages in an average.
ROLE OF ZTBL IN THE ECONOMI C DEVELOPMENTOFTHE PAKISTAN
Banks play an important and active role in the economic development of country. If the
banking system in a country is effective, efficient and disciplined, it brings about a rapid
growth in the various sectors of the economy such as agriculture, industrial, and the SME
sectors. If the banking system is unorganized and inefficient, it creates maladjustments and
impediments in the process of development. In Pakistan, the banking system is very well
organized. The SBP established on July 1st, 1948 stands at the apex and is responsible for the
operation of the banking system in Pakistan. The other banks such as commercial, specializedor unspecialized banks which form the banking structure in the Pakistan are playing an active
role in the economic development of the country. The role of the ZTBL in order to achieve
economic growth and development of the Pakistan is briefly explained as under:
1. Development of Agr icul ture & I ndustri al Sector.
The ZTBL particularly in rural areas of Pakistan are now providing credit for the
development of agriculture & industrial sector. The provision of credit to agriculture
&industrial sector has greatly helped in raising agricultural productivity and income of the
farmers. This has led to increased demand for industrial goods and expansion of trade
-
7/29/2019 Agricultural Banking of Pakistan
7/28
&industry. The use of bank drafts, cheque, bills of exchange, credit cards.etc., has
revolutionized both national and international trade.
2. Banks Promote Capital Formation.
The ZTBL plays an important role in rising of the financial resources. They encouragesavings by giving various types of incentives to the savers. They expand branches of the
banks in the rural and urban areas and mobilize savings even at far of places. These savings
are then made available to the businesses which make use of for productive purposes in the
country.
3. Investment in new Enterpri ses.
Businessmen normally hesitate to invest their money in risky enterprises. The ZTBL
generally provide short, medium& long term loans to farmers to invest in new enterprises and
adopt new methods of production. The provision of timely credit increases the productivecapacity of the country. The organized banking system helps in directing physical resources
into productive channels. It also keeps a balance between the availability and requirements of
the capital in the country.
4. Balanced Development of dif ferent regions.
The ZTBL plays an important role in achieving balanced development in different regions of
the country. They help in transferring surplus capital from developed regions to the less
developing regions. The trade industries etc. of less developed regions are ableto get adequate
capital for meeting their business needs. This in turn, increases investment, trade andproduction in the country.
5. Monetization of the Economy.
The commercial banks by opening branches in the rural and backward areas are reducing the
exchange of goods through barter. The use of money has now greatly increased the volume of
production of goods. The non-monetized sector (barter economy) is now being converted into
monetized sector with the help of commercial banks.
6. Implementation of M onetary Policy.
The central bank of the country controls and regulates volume of credit through the active
cooperation of the banking system in the country. It helps in bringing price stability and
promotes economic growth within shortest possible period of time. The ZTBLunder the
supervision and guidance of the SBP help in implementing and achieving the objectives of
the monetary policy which vary from time to time.
7. Fi nancing Development Projects.
The ZTBL provide short, medium & long-term loans for financing of development projects
both in private and public sectors. The ZTBL starts projects with the Ministry of Food,Agriculture &Livestock (MINFAL) launched an integrated development program entitled
-
7/29/2019 Agricultural Banking of Pakistan
8/28
Crop Maximization Project in 15 districts. The MINFAL will provide funds to the tune of
Rs.299.833 million to the ZTBL and thus help in accelerating the rate of economic
development in the country.
8. Booting the Exports:
In order to boosts the exports of the agriculture and industrial goods of the Pakistan, the
banks have established export promotion cell for the information and guidance of the
exporters.
9. Less Reli ance on Foreign Capi tal:
A planed banking system by launching vigorous campaign of mobilizing idle saving in the
country can meet the capital development requirements from within the country. The country
will thus have to rely less on foreign capital for financing in the development projects.
I nvestment Policy of Agricul tural Banks
The organization of the Department is spread over the following Divisions:
1 Agricultural Credit Estimation & Target Monitoring Division
2 Agriculture & Rural Finance Policy Division
3 PSCAC Secretariat/ Coordination & Services Division
Brief functions of each Division are as under:
I . Agri cultural Credit Estimation & Target Monitoring Division
Agricultural credit estimation/ assessment in consultation with stakeholders.
Allocation of indicative agricultural credit targets to banks.
Periodical monitoring of agricultural credit targets.
Undertaking all functions relating to ACAC.Follow-up for implementation of ACAC decisions.
Monitoring Credit lines to PPCBL &ZaraiTaraqiati Bank Ltd.
Managing the claims of bonafide losses of five big commercial banks.
Collection of periodical agri. finance data from banks and its dissemination.
Responding to Senate/ National / Provincial Assembly questions.
Preparation of reviews/ write-ups on agri. credit for various publications.
-
7/29/2019 Agricultural Banking of Pakistan
9/28
I I . Agriculture & Rur al Fi nance Poli cy Division
Reviewing agri/ rural finance in terms of issues/ challenges faced,
developments taking place in agriculture/ rural finance both in the country andelsewhere, developing an adequate knowledge and information base for policy
formulation, etc.
Introducing new products, schemes, guidelines in agri/ rural finance in
consultation with banks and stakeholders to catalyse growth and activity in the
sector.
Providing guidance to banks in understanding agri/ rural finance policies/
issues/ PRs of SBP, etc.
Formulation of agriculture & rural finance policies in consultation with
stakeholders.
Coordination with Federal and Provincial Government departments on
agriculture finance policies and issues.
Reviewing/ amending existing agri/ rural finance policies, instructions and
Prudential Regulations, etc. based on new developments and feedback from
stakeholders.
Organizing periodical meetings with agri. heads to discuss their performance
and issues being faced in agriculture finance.
Acting as an executing agency for SBP component of Agribusiness Finance
Development Project of ADB.
Managing developmental projects of the department in collaboration withother divisions/ units/ departments.
I I I . PSCAC Secretariat/ Coordination & Services Division
Coordination with stakeholders and formulation of working groups/
committees for making recommendations to increase the flow of credit to
various sectors of the economy.
Preparing working papers for the PSCAC meetings.Conducting the meetings.
Preparation of minutes and follow-up action plans.
Implementation of follow-up actions in collaboration with all concerned.
Administration, logistics, dispatch and support services for smooth running of
the Department.
Preparation of Business Plan & Budget for the Department.
Initiating and undertaking information dissemination and awareness building
programs for farmers and special training programs for commercial banks.
-
7/29/2019 Agricultural Banking of Pakistan
10/28
ZTBLVision StatementEmerge as a Leader in provision of agriculture credit by promoting and sustaining
productivity through a market/agribusiness focus. To bridge yield gaps of all agriculture
commodities and tonsure that the welfare of farming population is radically improved and the
environment is protected from harmful human interventions.
M ission Statement
To become a leader in guiding entrepreneurs & farmers implement an agribusiness andmarketing led approach that brings strong commercial orientation in production catering
domestic and international markets. As a specialized agriculture development bank, deliver
pragmatic technology and optimal solutions to farm communities and rural areas across all
agro-ecological zones with sensitivity to economic growth and equity. Develop close
partnership and linkages with all its clients to dramatically transform, restructure and revamp
the agriculture scene and enhance its outreach by investing wisely and judiciously in new
approaches, ideas and means of mass communication.
Corporate Objectives
The prime objective of ZTBL incorporated under the companies ordinance 1984 is to
provide rural and agriculture sector and mitigates poverty. The credit facilities in rural areas
shall be provided in cash or kind at a market based a mark-up rate that ensures operational
and financial sustainability of the bank. The ZTBL is to Develop and operate as a financially
and operationally sustainable R.F.I of the country. To assist rural community, particularly the
small farmers, in raising their productivity and income levels through timely delivery of
credit, advisory and ancillary services. BuildZTBL's image as a proactive, client friendly,
financially & operationally sustainable with indigenous product deployment. Establish and
provide backward and forward linkages to strengthen agri. value added commodity chains.
Engage in public - private and wholesale - retail partnership to deepen outreach and reduce
operating cost. It functions as a rural commercial bank to mobilize rural capital formationand
to commercialize the agri. sector by delivering the true value of credit to the client. Provide
aide range of risk insurance products to its clients. Open up its venues of operation to
Domestic& International Banking Industry to avail comparative advantages.
Nature of Business
ZaraiTarqiati Bank is to provide credit facilities to the farmers, including hiring and renting
of anything which it may advance way of loan and the provision for ware hosing facilities ofsuch terms and subject to such conditions as may be prescribed by its rule to agriculturists for
-
7/29/2019 Agricultural Banking of Pakistan
11/28
the purpose of agriculture and to persons engaged in cottage industries in rural areas and
provide sustainable rural financing services, particularly to small farmers.
Management H ierarchy
The general direction and superintendence of the affairs of the bank are entrusted to a 12
members Board of Directors consisting of chairman appointed by the Federal Government,
the Federal Government officers from the Ministries of Finance and Food and Agriculture,
four officers of the four Provincial Governments and onion official nominated by each
province. One member on this board represents the State Bank of Pakistan also. However, at
present the bank has 7 directors including chairman. The bank also has a president appointed
by the federal government and a company secretary. In ZTBL, the president supervises and
directs the Chief Executive Officer who supervises and directs the Head of Department, who
then supervise and direct the officers under them. The management hierarchy of bank is as
follows; Earlier the bank was functioning like a pure government institution and permission
has to be sought on every step for moving forward. Now the bank management board will be
fully empowered to run the affairs of the ZTBL.More than 2,000 employees of the bank have
opted for Voluntary Golden Hand Shake Scheme, offered by the bank to its employees. Bank
has established a task force for improving the operational performance of the staff and it was
monitoring the disbursement, recovery operations and performance of field functionaries. The
taskforce comprised 10-15 officers and each officer will head a desk exclusively to monitor
3-4 regions. This task force will be responsible to evaluate performance of each MCO,
Manager and Regional Manager on the achievement of banks policies regarding credit andrecovery periodically.
Board of Di rectors:Syed Qamar-Uz-Zaman Shah
Chairman Board
Mr. Muhammad Zaka Ashraf
President/ CEO
Mr.Yawar Zia
Director
Mr.QamarZamanChaudhry
Director
Mr.MuhammadIftikhar Khan Mohmand
Director
-
7/29/2019 Agricultural Banking of Pakistan
12/28
Mr.Tauqir Ahmad Faiq
Director
Dr. Khalid Ahmad Khokhar
Director
Mr. Imam Bux Sheikh
Director
Mr.Muazam Ali
Company Secretary
PRODUCTS & SERVICES OF ZTBL
The ZTBL has provided many products and services for their customers. The product and
services of the ZTBL can raise the living standard of rural areas and develop the agriculture
sectors of a country as well. The Pakistan is an agriculture country and the products and
services of the ZTBL plays very important role in increasing the GDP and accelerates
economic growth. For this purpose, the ZTBL provides many facilities for their customers,
such as provides schemes and loans, obviously help the customers to invest money in their
businesses, to get maximum profit from it and to pay low interest rates.
Products offered to Meet F inance Need of Farmers
ZaraiTaraqiati Bank Limited (ZTBL) is a specialized bank providing agricultural credit in
rural areas of the country. Pakistan is an agricultural country and near about 60% of its
population is working directly or indirectly related to agriculture industry. But instead of
being an agricultural country Pakistan is still not gaining benefits from this sector which it
can gain. Some time we even does not able to fulfil your food requirement and sometime we
have bumper crop but does not have facilities to store them properly, in this way we are
wasting our resources. To gain benefit from agriculture sector it is required tube modernized
to increase the per acre production and also to build warehouses to store. The main hindrance
in the modernization of agriculture is the unavailability of finance. The other financial
institutions feel reluctant in giving finance to farmers due to high level of risk in the
production of this field. To facilitate farmers and to help in modernization of agriculture
sector the government has established this bank which is contributing its part in achieving
government objective from many decades. ZTBL is offering a blend of products tofu fill the
need of different types of customers
-
7/29/2019 Agricultural Banking of Pakistan
13/28
SCHEMES OF ZTBL
The ZTBL provides various schemes for customers, in order to strengthen the rural and
agricultural sector of economy, mitigate poverty and accelerate growth. The Schemes of the
ZTBL is which is briefly explains as under;
Sairab Pakistan Scheme:
The ZTBL can raise the irrigated area for the purpose to accelerate rate economic growth and
to facilitate the farmers. The ZTBLhas assigned the collaboration agreement with the KSB
Pumps Company Limited under the Sairab Pakistani Scheme. The ZTBL will provide loans
to the farmers for installation of tube wells and turbines whereas KSB Pumps Company
Limited will provide quality pumps, turbines, equipments to borrowers for efficient pumping
of waters. The water can plays vital role to improve per acre yield. Out of total 31million
hectors area of the Pakistan, 22 million hectors is cultivated while 9 millionhectors is not
cultivated & waste mainly due to non-availability of water. More over increase in watersupply being a key input is required to raise cropping intensity and hence the income of the
farmer. Since inception the ZTBL financed over 143000 tube wells amounting to Rs.15
billion. The KSB Pumps Company will provide quality machinery and equipment for
efficient pumping of water. The company shall also provide after sale service including
replacement of parts and availability of spares through its network of dealers despite
technological advancements and rapid growth of industrial sector, agriculture is still the back
bone of the Pakistan's economy. It contributes 22% towards the GDP and employs nearly
45% of country's labour force. It provides raw material for preparation of industrial products.
So it has both pulled & pushes effect on the economy.
Supervised Agr icultur e Credit Scheme:
Under this scheme agriculture loans are given for short, medium and long term loans up to
Rs.1 million per borrower. The loans are sanctioned for fats, livestock, orchard, tractor,
agricultural machinery, tube well and irrigation facilities. Under the scheme besides provision
of credit, information is to the farmers for planning the farm, production, guidance for
implementation of the scheme, marketing and repayment of loans.
White Revoluti on Scheme:
In order to modernize the dairy farming for increasing milk supply, mitigate poverty in
Pakistan, and improving the living standards of the rural areas in Pakistan for the purpose to
achieve growth and development in agriculture sector of Pakistan, the ZTBL may start the
Strategic Partnership Agreement with the Pakistan Development DiaryCompany (PDDC)
and the Nestle Pakistan Limited (NPL) under the white revolution scheme. Under this
participatory approach, the diary sector would be modernized with a view to increase milk
supply, mitigate poverty and improve the living standard of the rural population. The ZTBL
has earmarked funds to the tune of Rs.5000 million for financing of 50,000 animals
(buffaloes and imported cows) during the five years period 2007 to 2011. ThePDDC will also
-
7/29/2019 Agricultural Banking of Pakistan
14/28
help the ZTBL in the selection of clients and processing of loan cases. Initially the schemes
will be for modernization of 5000 farmers during 5 years period involving Rs.700 million.
Under the scheme 1000 farms would be covered on yearly basis. The modernization of dairy
farm will be carried out through financing milk cooling tank, generator, voltage stabilizer, hot
water geezer, water pump, cooling pad and other dairy equipment. There would be maximumlimit of loan of Rs.1 million per borrower party. ThePDDC would bear the entire amount of
mark-up charged in the loan cases & provided the 50% of principal part of loan is repaid in
time by the borrower. The remaining 50% amount of principal along with the amount of
mark-up would be paid by the PDDC.The Nestle Pakistan Limited would help to select and
identify good clients for the ZTBL to improve quality breed of foreign and local dairy
animals. The NPL can provide technical guidance to the farmers through nestle veterinary
doctors. The NPLwould purchase milk through its network and make weekly payments of
milk sale to the ZTBL for the adjustment of loan.
Micro Credit Scheme:
This Scheme has been launched since 15th July, 2000for the uplift of rural poor. The landless
poor such as; tillers, harries and small landowners having land not exceeding 2 acres may
avail loan under Micro Credit Scheme. It is operational in all branches of the ZTBL through
all the Mobile Credit Officers. Both, men and women may obtain loans under the scheme as
an individual or as a member of group of 5-10 members. The minimum credit limit is Rs.
5,000while maximum credit limit is Rs.25, 000. One hundred and thirty six income
generating activities or cottage industry items have been identified for lending under the
scheme. The loan may be advanced against one surety with 50% solvency of the assessed
value of property owned by the guarantor or security of tangible property. Being small loansinvolving high cost 18% per annum mark-up is charged, whereas2% rebate is given on timely
repayment. All loans under these Schemes are recoverable within 18 months after
disbursement of loan.
Zarkhaiz Scheme (One Window Operation):
For timely and conveniently provision of credit to purchase inputs, loans is provided to the
borrowers under this scheme being conducted twice a week during Rabi &Kharif seasons. All
the related departments such as revenue, agriculture, post office.etc. attend the focal points
which are established at convenient places. The farmers get their pass books prepared andloan applications processed on the same day whereas sanction payments are made within
three days at branch. 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.
SadaBahar Scheme:
For providing timely input loans for crops and working capital for poultry and fishery etc.,
the ZTBL has launched a SadaBahar Scheme. This scheme is also known as Revolving
Finance Scheme. The assessment for inputs requirements for the whole year is made at thetime of first application. The amount so assessed is treated as revolving limit provided it is
-
7/29/2019 Agricultural Banking of Pakistan
15/28
within the security limit. The managers are authorized to sanction such loan limits up to Rs.5
Lake. The salient features of the scheme are given as under:
1. Revolving Credit Limit is fixed to cater production credit and ancillary requirements of the
farmers during one year period.
2. The borrowers can draw the credit in lump sum or in instalments according this
requirement.
3. The borrowers can repay in lump sum or in instalments during the year when his cash
position allows him.
4. The Pass Book containing transactions in his account is supplied to every borrower free of
cost.
Tea Financing Scheme:
In order to increase the tea cultivation in Mansehra,Swat, Mutta and Dir in Malakand
Division, the tea financing scheme has been introduced which would not only save the hard
earned foreign exchange.
Kissan SupportServices Ltd.
Subsidiary of ZTBL
Kissan Support Services Ltd. Is a subsidiary of ZTBL which is established with a capital
investment of 100 Million to help ZTBL in the achievement of its objective and also to make
availability of trained human capital to the bank?
KSS Aim
To provide support staff to ZTBL &under takes its non-core activities.
KSS Operation
Kissan support services operate under its Memorandum & Articles of Association.
Objectives
The main objective of KSS is following:
To provide to the Bank all kinds of support staff and ancillary services
To plan, organize and establish training facilities to impart training to the banks staff
Drip Irrigation System to assist the bank clients in marketing of their product and
provide storage facilities
To assist the bank clients in marketing of their product and provide storage facilities
-
7/29/2019 Agricultural Banking of Pakistan
16/28
To provide welfare services to the employees of the Bank including education,vocational training, sports and recreation facilities
To invest any surplus money of the company not immediately required
To carry on any business, which may seem to the company capable of being
conveniently carried onTo liaison & establish contracts with agricultural research organizations for
development of efficient, effective and appropriate technologies
To carry on business of providing consultancy, advisory and other agency
services and support services to ZaraiTaraqiati Bank Limited
To provide to the Banks clients quality products and services for efficient
and improved farming.
Services/Activities so far undertaken by KSS
Security Services to ZTBL
Recruitment/provision of staff
Janitorial Services provided to:a.ZTBL Head office buildingsZTBL
Farms.Staff College.Printing stationery office .AV Unit.Old record office.
Sports club.Warehouse
Management of Sports Activities
Management of Sports Activities
Photocopy Services
Day to day minor repair and maintenance of ZTBL HQ Buildings
Types of loans
Banks provides loans through various products/schemes for short, medium and long term
depending on the cash flow of the borrowers. The bank gives special focus and importance to
fulfil the genuine and real needs of the small farmers in terms of production loans (seed,
fertilizers, pesticides, POL, labour charges etc.) as well as for working capital purpose. These
loans are provided to the needy farmers in cash and kind under various schemes like
SadaBahar, AwamiZarai, General Credit and One Window Operations Zarakhazi Schemes.
The bank also provides Development loans to farming community like tractors, allied agri-
equipment /implements, besides loans for poultry and livestock, fisheries, orchards,
plantation, and irrigation schemes etc.
Types of Loans Advanced
1. Short Term Loans
Short term loans are loans for shorter period of less than a year. It includes, crop production
working capital loans recoverable in lump sum commencing after the harvest/marketing of
respective crops and within maximum period of 12 months.
2. Medium Term Loans
-
7/29/2019 Agricultural Banking of Pakistan
17/28
Medium term loans are for a period of more than a year but less than 5 years. In includes,
dairy farming and livestock etc. The instalments of these loans are usually paid able in
quarterly or half yearly basis.
3. Long Term Loans
Long term loans are for a period of more than 5 years. These are development loans which
require large amount and also need some time to show its result in the shape of better
production. It includes loans for tractor, agricultural machinery, poultry farming,god owns
and orchard in yearly/half yearly instalments within maximum period of 8years.
Maximum Credit limit
Maximum limit of loan is Rs.1.00 million per borrower/party.
Lending Criteri a
The bank advances preferably to small farmers and following criteria is observed in overall
distribution. Subsistence farmers 70%Economic farmers 20%Big farmers 10%Production
loans 77.5%Development loans 22.5%The management adopts lending recovering linkage
criteria to ensure smooth operations of the bank and honour its obligations.
Security
The bank provides loans under Agri-Pass Book System as well as other collateral acceptable
to the bank. Simplification of loan documents is in order to facilitate the farmers; the Bank
has simplified the loan documentation to be applicable for three years of the loan period. The
main loan documents which are presently being used in the branches of the bank are as under
loan application form IB-7 Revised loan Agreement-cum-Guarantee Charge Creation
Certificate/Sanction Mutation entered in bank favour sanction latter for loan.
Major L ending scheme
SadaBaharScheme One Window Operation/ZarkhaizScheme Crop Maximization Project-IWhite Resolution Scheme Red Meat Financing Package Scheme Green Revolution
SchemeSairab Pakistan Scheme Crop loan Insurance SchemeBanazir Tractor
SchemeAwamiZaraiScheme Establishment of Model Village
Performance and Progress of Projects Loan Disbursement
During the year 2009 loans amounting to Rs.77.680 billion were disbursed to 567.415
borrowers as compared to Rs.70.698 billion availed by 571,946 borrowers during the year
2008. Thus growth in amount was 10%.
RECOVERY PROCEDURE OF LOAN
-
7/29/2019 Agricultural Banking of Pakistan
18/28
The recovery procedure of the ZTBL loan is to carried and taken by three steps such as
recovery schedule, issuance of notice and legal action which is briefly explains under;
Recovery Schedule:
The recovery schedule in each loan case as per terms of sanction of loan is fixed and
communicated to the borrowers after disbursement of loan. In case of default or failure in
repayment of any instalment due date the mark-up shall continue to be charged and
lastinstalment due to this may differ from the amount of instalments fixed at the time of
disbursement.
I ssuance of Notice:
The ZTBL can issue notice for recovery of loan which is known as Demand Notice. It is
issued before the due date of every instalment. A legal notice is issued one month after the
due date informing the borrower that if the amount is not repaid within next one month,
further legal action will be taken to recover the dues.
Legal Action:
The legal action can be initiated against the defaulter if loan is not repaid even after expiry of
legal notice period. Where the court in bank's favour has decreed case, account is to be settled
by recovery of amount from the auction of the mortgaged property. The bank may purchase
the mortgaged property if considered feasible to dispose it off later on through auction or in
any manner deemed fit for getting the best price. The bank may dispose of the mortgaged
properties of defaulters for satisfaction of its dues without intervention of courts under
Financial Institutions Ordinance 2001
Types of Secur ity
Immovable Property
Agricultural Land
Under Pass Book System 80%
Outside Pass Book System 70%
Under Alienability Certificate 66%
Commercial/Industrial Land under Pass Book 80%
Outside Passbook System
Urban Residential/Commercial Plots in all localities outside Passbook 75%Alienability Certificate 66%
-
7/29/2019 Agricultural Banking of Pakistan
19/28
Residential/Commercial Buildings 70%Lease hold rights of a leased land of CDA/KDA with 99 years lease70%
Moveable Property and Guarantees
1.Unconditional Bank guarantee from scheduled Banks
Up to maximum amount of an un-conditional Bank guaranteeafter keeping sufficient margin
for un-paid mark-up, cost, chargesand expenses.
2.Guarantee issued by Central or Provincial Government
Full amount of loan plus return and other charges.
3.Government securities
85% of face value or market value whichever is less.
4.Defense Savings & FEB Certificates
75% of value of certificates presented as security.
5.Fix Term Deposits Receipts
85% of face value of deposits receipts.
6. NIT Units
80% of the face value or market values whichever is less.
7.Life Insurance policies
85% of surrender value
8.Pledge of Potatoes/Seed Potatoes price or market value whichever is less
Up to 75% of Govt. support.
Personal Surety
Against a bond with two sureties under General Credit and one surety in Special Schemes up
to Rs.25,000/- or Up to 50% of appraised value of properties of sureties.
Repayment Periods
Short Term L oans
Crop production working capital loans recoverable in lump sum commencing after the
harvest/marketing of respective crops and within maximum period of 12 months.
Medium Term Loans Dair y
-
7/29/2019 Agricultural Banking of Pakistan
20/28
Farmingand livestock etc.In yearly/half yearly/monthly instalments and within maximum
period of 5 years.
Long Term L oans
Tractor, agricultural machinery, poultry farming, gowns and orchard in yearly/halfyearlyinstalments within maximum period of 8 years and. above
VARIOUS ANALYSES
INTRODUCTION
The analysis is a tool, which is used for checking the overall performance of any
organization. It is not only used on national level but also on international level for the
purpose to check internal and external factors that influence the organization, positively or
negatively and leads the organization towards failure to success.
There are various analyses, such as the SWOT analysis, human resource analysis and
marketing analysis, which is briefly explain as under;
SWOT ANALYSIS
The word SWOT is abbreviated to strengths, weakness, opportunities and threats while
analysis is a tool, which is used for checking the overall performance of any organization.
The SWOT analysis is a strategic planning tool used to evaluate the overall organizations
strengths, weakness, opportunities & threats and involves specifying the objective of the
organization and identifying the internal and external factors that are favourable and
unfavourable to achieve that objective. The SWOT analysis is designed to help an
organization from failure to success. Finally, we do the strength & opportunities because it is
helpful while we avoid the weaknesses and threats which is harmful for organization, which
is shown in below figure
Strengths:
The attributes of the organization which are helpful in achieving the objective.In other words,
strengths means, the activities that an organization does well favourable chances or positive
factors in the internal environment due to which organization achieve the objective. Thestrengths of the ZTBL are given as under;
-
7/29/2019 Agricultural Banking of Pakistan
21/28
1. Strong Supervision and Management:
The supervision and management of the ZTBL is very strong such as step by step, effective
and efficient that leads the bank toward failure to success
2. Provide many Facilities for Employees:
For maintaining the employees, the ZTBL provides the facility of health, safety and
employee relations &training.
3. Employees Traits:
All staff members are well mannered in attitude, communications & following the ethics.
4. Credit Rating:
The report of Jun 22, 200, the credit rating of the ZTBL was reaffirmed the medium to long-term entity rating of AAA (Triple A) with a stable outlook and short term rating of A-1+
(A-One Plus) assigned to the ZTBL.
5. Risk Management:
The risk management of the ZTBL is still in the process of restructuring and efforts have
been put in place to adequately equip the risk management function with credit review, credit
risk rating and value at risk models. Pakistan is an agriculture country with major portion of
its economy dependent on agricultural sector. ZTBL recognizes this responsibility and thus
also caters to agriculture sector which promises high returns.
6. Expansion of ZTBL:
The ZTBL is expanding day by day because customer accepts it. Its network expanded to 342
branches and 25 zonally offices in the Pakistan, which will attract large number of customers.
Weakness:
The attributes of the organization which are harmful in achieving the objective. In otherwords, weakness means, the activities that an organization lakes or unfavourable chances or
negative factors in the internal environment due to which organization do not achieve the
objective. The weakness of the ZTBL is given as under
1. Understaffing:
The total number of employees is 5,326 in the ZTBL Head Office. In age of technology and
globalization, the understaffing may cause unnecessary work burden on employees
decreasing their efficiency.
2. Lack of Refreshment Courses:
-
7/29/2019 Agricultural Banking of Pakistan
22/28
Although the ZTBL has its own Training and Development Canter but it needs to give
refreshment courses to its employees more frequently so that they came explore new
dimensions and conquer worlds.
3. Seniority Based Promotion:
Promotion in the ZTBL is purely on seniority basis rather than on performance. This really
de-motivates the employees because they know that it doesnt matter whether they perform
well or bad.
4. Lack of Job Rotation:
Most of the employees work in a particular department and they specialize only in one
department. In case of absence of one employee, any other employee cannot perform this
work. In this way bank not only loses the business but also results in dissatisfaction of the
customer.
5. Shortage of skilful Labour:
The shortage of skilful labour or manpower that will lead the organization from success to
failure. Because in the ZTBL, there are many contract and temporary based employees that
has lake of managerial& financial skills.
6. Lack of Qualification:
The employees working on the same position may have different degrees like B.Sc., B.A.
etc. which devaluate the students of MBA, BBA, and other well qualified staff. So there is alack of professional staff in different departments and lack of theoretical knowledge of the
employees as well.
7. The Rate of Absenteeism and Turnover:
The absenteeism &turnover rate is too high thats results the conflicts in the organization.
Opportunities:
The attributes of the organization which are helpful in achieving the objective. In other
words, opportunities means, the activities that an organization does well or favourable
chances or positive factors in the external environment due to which organization achieve the
objective.
The opportunities of the ZTBL are given as under;
1. Proper Utilization of Recourses:
The Organization is made up three types of recourses, such as human, physical & financial
resources which come from external environment. However, in the age of globalization for
-
7/29/2019 Agricultural Banking of Pakistan
23/28
achieving growth, the competent, skilful and the English speaking employees are of the
requirement of the organization.
2. Increasing Extensive Advertisements:
The ZTBL can increase the extensive advertisements of new products, services, vacancies, inorder to increase customers & heir competent employees from external environment.
3. Mobile Credit:
The ZTBL can start mobile credit which is the best way to effectively utilize its present
resources to gain a competitive edge.
4. Increasing the Amount of Loans and Capital:
The ZTBL increases the amount of loan for their customers, which is five lacks, in order to
attract the large number of customers. The ZTBL issue a large amount of capital toagriculture sector, in order to, utilize its resources more efficiently and to earn more profit.
5. Creating Public Relations:
The ZTBL also, involves in creating public relations that will increase the image and
profitability of the bank. Often, public relations are conducted through the media that is,
newspapers, television, magazines, and internet.etc. thats attract a large number of
customers.
Threats:
The attributes of the organization which are harmful in achieving the objective. In other
words, threats means, the activities that an organization lacks or negative factors in the
external environment due to which organization do not achieve the objective. The threats of
the ZTBL is given as under
1. Avoid Discrimination:
The ZTBL can avoid discrimination because it is harmful for the bank in achieving its
objective. The bank can hire the employees from external environment. The right person is
for right for job will leads the organization towards failure to success.
2. Avoid Illegal Activities:
The employees of the ZTBL can avoid the illegal activities in external environment that will
reduce the reputation and image of the ZTBL.
-
7/29/2019 Agricultural Banking of Pakistan
24/28
3. Internet Banking:
It is the main problem that was found to be a lack of trust in the new banking channel by
customer. However, effective complaint management can increase customers loyalty and
trust in Internet Banking. However, the CrisesManagement Plan has been developed which
is under review by the senior management. The objective of this plan is to have clear
guidelines and communication in the event of any crises occurrence, which may threaten the
safety of its staff, the security of its assets, the continuity of its operation and the reputation of
the ZTBL
Human Resource Analysis
The organization is made up by three types of resources such as human, physical and
financial resources. Recently, the ZTBL can properly utilize their resources more efficiently
in order to strengthen the rural and agricultural sector, mitigate poverty and investment
activities. But the most important is the human resource and which the key ingredient for
successes of any organization. Hiring and retaining productive people is critical to the success
of every organization which is permanent, temporary or contract basis. The Human Resource
Division mainly involve in hiring of employees, training and development of employees,
employees motivation.etc. Activities necessary for staffing the organization and
sustaining high employee performance The achievements of the ZTBL and the
implementation plans for future can never be possible without skilled and motivated
employee, for this purpose the HRD makes continuous effort to attract highly educated,
skilled and trained manpower in different fields especially in the field of IT, HR and Finance.
Trainings, workshop, seminars, support for higher education are the few activities beingcarried out to upgrade the skills of professionals working. The ZTBL can motivate their
employees by providing compensation packages, house rent, medical allowanceetc. The
Human resource analysis is briefly explained as under;
1. Hiring of Employees:
The ZTBL can hire the employees by submitting the CV in the Human Resource Department.
If the person is eligible for the post, then the Head of HRD will call to inform the person for
the interview. Recruitment staff including job description, preparation, preparing
advertisement, checking application forms, short listing, interviewing and selectingcandidates through the selection procedure is done by HRD.
2. Training & Development of Employees:
Once the employees are recruited by the Human Resource Department, it is very important to
develop their skills. There are two ways to develop their skills and to give trainings in the
ZTBL Staff collage such as theoretical and practical training. However, initial training or pre-
service training is given to the employees at initial stages of fresh candidates. This training
covers the theory related topics such as banking rules, regulations and operations. After
completing the theoretical training, they are placed on different branches for getting practicaltraining.
-
7/29/2019 Agricultural Banking of Pakistan
25/28
3. Employees Motivation:
The ZTBL can motivate their employees by providing different facilities. The employees,
who are motivated, exert a greater effort to perform the assigned tasks effectively and
efficiently than those who are not motivated. Various measures are used in the ZTBL for
motivating the employees. The techniques are as follows;
I. Compensation Package:
The compensation is based on the employees knowledge, education, skills and experience.
There is no fixed pay scale in the bank. Many people get different salaries even though they
had been selected for the same batch under the same circumstances with same qualification
but mostly depend on the grade on which the employees is ranked.
II. Promotions:
The ZTBL can promote the employees to higher grades on the basis of performance during
each year.
III. House Rent:
The house rent is provided to all categories of staff. This allowance is not payable to those
who are provided with accommodation by the ZTBL. The ZTBL can also provide the
accommodation facility for their employees, in order to reduce the absenteeism.
IV. Medical Allowance:
The ZTBL will reimburse the cost of medical advice and medicines, claimed by the
employees for themselves and their dependents on production of medical certificates from
employees indicating disbursement made by him.
The Marketing Analysis
The marketing is a process of managing the performance of business activities designed to
plan product, price and promote; in order to achieve organizational objectives. Though it
sounds simple, the actual practice poses many challenges. The marketing analysis of any
organization plays a vital role in directing its future direction. A good marketing analysis cangive new heights, whereas a poorly designed analysis can prove to be disastrous. However,
the marketing is based on the customers satisfaction through its value added products and
services. The ZTBL regularly use different methods of marketing in order to aware and
attract customers regarding their products and services. The marketing analysis is done by
using various methods used by the ZTBL, which is briefly explained as under
1. Prin t Media Advertisement:
The ZTBL give different advertisement regarding their products and services, in order to
attract large number of customers from time to time in the newspapers.
2. The 4Ps:
-
7/29/2019 Agricultural Banking of Pakistan
26/28
The 4Ps means the product, price, place and promotion . The ZTBL can use 4Ps regularly in
order to attract large numbers of customers, by proving lot of products and services.
I. Product:
The ZTBL strategy is offer most comprehensive portfolios of personalized financial solutionsthat are customer tailored to serve the requirements of customer
II. Price:
The ZTBL follows the strategy of low margins, high volume with its low mark up and easy
repayment schedule it tends to be more attractive even for consumers with less money.
III. Promotion:
The ZTBL effectively advertises its services and product using the through broachers, book
let magazines and low margin on loan is also the base of promotion.
IV. Placement:
With a wide network of ZTBL the bank operates through 25zonal offices with 342 branches
under them with over 1250 agriculture graduates known as MCO.
3. Internet and Electronic Media Advertisement:
The ZTBL consistently give information regarding their products and services on the internet
and also give commercials on the television for awareness and attracting the large number
customers.
4. Brochures:
They have designed different brochures for each department and for each product; these are
given to customers for information and attraction purposes.
5. Sports Sponsorship:
The ZTBL can sponsor different sports promotion activities on television and radio likeCricket, Hockey.etc.
F INDINGS & RECOMENDTIONS
FINDINGS
I. The employees working on the same position may have different degrees like B.Sc.,
B.A. etc. which devaluate the students of MBA, BBA, and other well qualified staff. So
there is a lack of professional staff in different departments.
II. There is no job rotation for employees which create job burning.
-
7/29/2019 Agricultural Banking of Pakistan
27/28
III. The officers of RRD face many problems during preparing different financial reports
which consume lot of time.
IV. The employees are not satisfied with the compensation package; they are just getting
experience and want to shift to another organization that has strong position in the agriculture
finance market.
V. The availability of staff training makes employees aware of work and is know done by the
ZTB Staff College which is provided by the KSSL
VI.The absenteeism & turnover rate of the employees is too high thats results the
misunderstanding and conflicts in the bank.
VII. In the ZTBL, there is problem is understaffing of employees. The total number of
employees is 5,326 in the ZTBL Head Office. In age of technology and globalization, the
understaffing may cause unnecessary work burden on employees decreasing their efficiency.
RECOMMENDTIONS
I. Although sill, there is cooperative environment in the ZTBL, but there is a need to further
boost it up. There must be cooperation among staff members, management, customer and
shareholders.
II. The job rotation of duties of employees should be implemented to improve the
performance which will enhance their skills and confidence.
III. The motivation level of the employees should be enhanced by increasing compensation
and giving extra fringe benefits.
IV. The advertisements of the products and the services of the ZTBL should be done in a
proper way with a strategic management.
V. To hire creative, skilful and young employees on the basis of their eligibility and
experience but not on discrimination basis. The recruitments should be strictly on merit basis
and induction should be after proper and extensive training.
VI. To remove the file keeping barriers, which waist a lot of time on searching of files. There
should be a proper check and balance. The documentary records of the ZTBL should be
correct and complete.
VII. More rewards and bonus schemes should be for management as well as for employees
and promotion should be based on performance of employees and not on favouritism.
VIII. ZTBL has developed a web site but still only its front home page has been developed
while other banks have good attractive sites.
-
7/29/2019 Agricultural Banking of Pakistan
28/28
IX. The efforts should be made to reduce the employee turnover and absenteeism rate
because it creates misunderstanding and conflicts in the ZTBL.
X. In order to increase cooperation among employees, management has to arrange different
parties or get together which will create love, care and cooperation among employees.
XI. MIS is still not fully understood by all of the employees. To cope with this situation, the
management should arrange workshops and short courses, so that the employees can benefit
fully from the MIS.
XII.The employees attitude andbehaviour towards work and customers must be positive
and polite way at time of conversation.
XIII. In order to increase the motivation, job satisfaction, and organizational commitment the
organization should give special incentives to all the old as well as new employees. This may
be in the form of promotion or increase in pay or other facilities provided to them onperformance basis.
XIV. The promotions should be given to the employees of ZTBL on the basis of performance
rather than seniority, time period or designation.
XV. The job rotation techniques should be adopted so as to make the staff knowledgeable of
the operation of various departments of the ZTBL.