2021

INTERNSHIP REPORT
BBA-IV
Asadullah
Mirbahar
SHAH ABDUL LATIF UNIVERSITY
KHAIRPUR GHOTKI CAMPUS
[email protected]

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 .

Name of Asadullah Mirbahar

internee:
GC18-BBA-007
Roll#
BBA-IV (Finance)
Class:
BBA-18 Batch
Session:
Business Administration
Department:
Shah Abdul Latif University Ghotki Campus
Institute:
Khushhali Microfinance Bank Limited Ghotki Branch
Internship
Venue:
Course Sir Fiaz Bhutto
Instructor:

Submission , Janurary 03 , 2022

Date:

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 1|Page
Internship Report

Table of Contents
Table of Contents
LETTER OF TRANSMITTAL ............................................................... 6
OVER VIEW OF THE ORGANIZATION ........................................... 10
THE ENVIRONMENT ............................................................................ 11
ORGANIZATION STRUCTURE ......................................................... 13
ORGANIZATION HIERARCHY CHART ...................................................... 13
INTRODUCTION TO ALL DEPARTMENTS. ................................ 15
PLAN OF THE INTERNSHIP PROGRAM ..................................... 16
A BRIEF INTRODUCTION OF THE GHOTKI BRANCH .............................. 16
PRODUCTS OF KHUSHHALI BANK LIMITED. ......................... 16
OVERALL OBSERVATION IN MY INTERNSHIP PROGRAM: . 19
CRITICAL ANALYSIS, ....................................................................... 21
CONCLUSIONS ................................................................................. 22
RECOMMENDATIONS .................................................................... 24
REFERENCES, AND SOURCES. ..................................................... 26

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Dedication

I am very proud to dedicate this report to my

PARENTS who always support me in every step of my
life and to my TEACHERS who enlightened my ways
in the darkness and I would like to dedicate this
report to the Supporting STAFF of Khushhali
Microfinance Bank Ghotki Branch especially Zakeel
Kolachi (Credit Administration Officer) and
Sanaullah Kalhoro (MSME loan Officer) and all
others who helped me to complete my internship at
branch.

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Internship Report

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Acknowledgement

I am very thankful to my Allah who is the master of masters, great and merciful.
He is the only who makes ease in every difficulty and helps in every situation. All
the praise is for Almighty. Who gave me courage, Knowledge and resources to
complete internship at Khushhali Microfinance Bank Ghotki Branch, after that
Great thanks to my Instructor Sir Fiaz for coordinating my internship. I would
like to Thanks to Mr. Abdul Razzaque Memon the Branch Manager of KMBL
Ghotki Branch
& Special thanks to Mr. ZAFAR ALI Operation Manager for his precious
efforts for my betterment & also special thanks to Mr. Zakeel Kolachi (CAO)
for providing me a reference for doing internship at Khushhali Microfinance
Bank and guided me throughout my internship tenure And thanks to Loan
Officer, Client Service officer, Cash officer for training me about their jobs and
guiding me through my six weeks’ internship at branch.

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 LETTER OF TRANSMITTAL
To
Head of Department
Department of Business Administration
SALU GHOTKI CAMPUS

Subject: Submission of Internship Report on “Khushali Microfinance Bank

Limited”

Dear Sir,
. Its my utmost pleasure to present this report to you by practically passing through
the phase of internship, as a partial fulfilment of my BBA degree
This Report summarizes all the practical experiences and active insights about the
organization in which I was present as an Intern. I have furnished the entire thing what I
have learnt during the internship at Khushali Microfinance Bank Limited Ghotki Branch.
I shall be highly encouraged and motivated if you are kind enough to receive this
report.

Sincerely yours,

___Asadullah Mirbahar___________
Name of Intern
Regi. No.: GC18-BBA-07
Bachelor of Business Administration
Shah Abdul Latif University Campus Ghotki.

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 Executive Summary
This report is based on the practical work and the analyses of the Khushhali Microfinance
bank Ghotki branch, which will give the highlights of how the branch functions, and the
facilities provided to the customers by this branch. Khushhali Microfinance Bank limited
(KMBL) (the commercial based Microfinance bank) was incorporated in Pakistan in the
year of 2000, as a part of the Gov. of Islamic Republic of Pakistan's Poverty Reduction
Strategy and its Microfinance Sector Development Program (MSDP) under the ordinance
of Microfinance 2001.

Khushhali Microfinance Bank limited was a part of the Pakistan government bank on 2000.
The Headquarter of Khushhali Microfinance Bank limited in Islamabad. First of all the
Khushhali Microfinance Bank limited took the license to the state bank of the Pakistan then
provided the services to Pakistan under the supervision of State Bank Of Pakistan (SBP). It
has 139 branches across Pakistan. It is not only microfinance bank but it is also working on
deposits side products. KMBL’s assets products include both secured and unsecured loans
and liability’s Products included current account, saving account and fixed account
categories with different Interest rates.

The main objective of KMBL is to provide loan facility for poor peoples to survive in their
lives. From 2014 to 2015 KMBL Profit increased from 703 million to 824 million by
providing their best services.

KMBL Ghotki branch was established in 2002 at Ghota Market Ghotki. In 2005 it was
shifted to Sada Bahar Shopping Centre near Bilal Mosque Ghotki. Now it is located at
DeVry Road ghotki.

During the period of my internship from June 12th 2021 to July 22nd 2021, I worked in
Loan Application form, Field work experience, Clearing & Remittance (Western Union)
and Account Opening successfully and acquired a lot of knowledge and experience while
interacting with staff of Khushhali Microfinance Bank Limited Ghotki Branch.

The management of KMBL is taking strategic steps to enable the bank to emerge as a
strong and progressive institution. It is continuing to make efforts to refine its products and
operations to remake them more compatible. New deposit and loan Products have been
introduced and a make plan to maintain revenue growth in future.

This report is an upshot of my six week internship at the branch of Khushhali

microfinance bank which is located in Ghotki district Sindh province, the report includes the
introduction of the bank its history and the information about its head office and complete over
look of products and services of the bank, further this report is classified according to the
designations with whom I worked in, complete information about their responsibilities and work
processes fall under their heads are included along with the knowledge I acquired from the
branch included in the report.

Further this report contains the information about banks facts and figures and financial
upshots, SWOT analysis with the concluding remarks about branch from my six weeks
understanding about the bank.

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During my internship I have learned many new things in different perspective in spite of the
knowledge acquired from university and also came to this conclusion that education alone is not
enough, practical training in every field is very much necessarily to become a successful
manager.

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OVER VIEW OF THE ORGANIZATION

1.1 BRIEF HISTORY

Founded in the year 2000, Khushhali Microfinance Bank Limited was a part of the Government of Islamic
Republic of Pakistan's Poverty Reduction Strategy and its Microfinance Sector Development Program (MSDP).
MSDP was developed with the facilitation of Asian Development Bank (ADB). With its headquarters based in
Islamabad and the launched first branch in Dera Ghazi Khan, Punjab. Khushhali Microfinance Bank limited
operates under the supervision of the State Bank of Pakistan (SBP). The bank's board comprises of seven
members including leading commercial bankers, fund managers and microfinance experts from across the
globe. The mandate remains to retail microfinance services and to act as a catalyst in stabilizing the country's
newly formed microfinance sector.

1.2 INTRODUCTION OF THE ORGANIZATION

Khushhali Microfinance Bank Limited is first microfinance bank of Pakistan. It is also leading
microfinance bank in Pakistan. Khushhali Microfinance bank’s 139 branches & 2 service centers are
operating in 73 districts of Pakistan in all provinces including Azad Jammu & Kashmir.

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(Source https://khushhalibank.com.pk/aboutus)

NIFT stand for National Institutional Facilitation Technologies. Clearing House of SBP has shifted a part
of its work to private institution named NIFT. NIFT collets Cheque, Demand Draft, Pay Order, Travelers
Cheque, etc. from all branches of different Banks within city through its carriers and send them to the
branches on which these are drawn for clearing. NIFT prepares a sheet for each branch and send it to each
branch as well as to State Bank of Pakistan where accounts of Banks are settled.

Vision

“To be a leading microfinance bank providing financial services to enterprises across Pakistan.”

1.2.3 Mission

“To strive for excellence and to adopt sustainable practices for the best long-term interest of all
stakeholders

The Environment

Khushhali Bank operates under the Microfinance Sector Development Program (MSDP) which
was initiated by the Government of Pakistan through a Microfinance Development Policy. MSDP
has an important objective

– to provide affordable financial and social services to the poor, for a significant impact on
poverty reduction through:

Increased income of small Landlords & entrepreneur

Enhanced outreach particularly to women

Build social capital

Reduce risks faced by the small business men.

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Work on deposit on high profit rates.
Hiring Process:

• Submission of Online Application through http://www.khushhalibank.com.pk/careers/

• Short listing of merit candidates in the light of job criteria.

• Conduct test

• Screening interview

• Final interview

• Job offered to the selected candidate(s).

3.5 NAMES OF THE DEPARTMENTS WHERE I WAS ASSIGNED

3.5.1 Sales department
Loaning
Recovery

3.5.2 Operations department

Cash counter
Client service
Credit administration
Including tasks as Filling,

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 ORGANIZATION STRUCTURE
A self-governing private-sector board comprising of professional bankers and social
developers governs Khushhali Microfinance Bank's policies and provides guidance to the
management in establishing a strong customer-centric platform with an intention to establish
a dynamic work environment and to inculcate a competitive culture, the bank's core
management is selected from the banking industry, bringing skills in operations and financial
management tenets whereas a sound delivery channel gains its strength from professionals
with marketing backgrounds from various sectors. Khushhali Microfinance Bank Limited
(formerly known as Khushhali bank limited) is regulated by the State Bank of Pakistan.

Organization Hierarchy Chart

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. Management:

The success of Khushhali

Microfinance Bank Limited
is accredited to the dedicated
management team that
handles business, provides
operational support and
maintains a suitable internal
control environment.
Khushhali Microfinance
Bank Limited’s team strives
to leave no stones unturned
in order to provide access to
financial services to the
largely un-banked

segments of market through the largest microfinance network in Pakistan.

• Ghalib Nishtar (CEO)

• Saleem Akhtar Bhatti (Chief Financial Officer)
• Amina Hassan (Head Retail Banking)
• Wajid Ali (Head Human Resource)
(Chief Information
• Syed Nasir Abbas Naqvi Officer)
• Hammad Haider (Head Operations)

• Ms. Lubna Azam Tiwana (Chief Risk Officer)

• Ali Imran Bokhari (Chief Internal Auditor)
(Chief Compliance
• Rizwan Hafeez Officer)

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 Introduction to All Departments.
Compliance Department.

2.4.2 Retail Department.

2.4.3 Operation Department.

2.4.4 Product Designing Department.

2.4.5 Internal Audit Department.

2.4.6 IT Department.

2.4.7 Human Resource Department

2.4.8 Finance Department.

2.4.9 Marketing Department.

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 Plan Of the Internship Program
A BRIEF INTRODUCTION OF THE GHOTKI BRANCH

Khushhali Microfinance Bank Limited established their branch at Ghotki in 2002 at

Ghota Market, after 3 years they shifted the branch to Sada Bahar Shopping Center near
Bilal Mosque, currently it is situated at Devri Road Ghotki. Banks operating time is 9am
to 5pm, 6 days in a week, it offers all the products and services designed by their central
office as mentioned above and maintain their compliance with the policies and
procedures issued by their heads from head office which is located at Islamabad.

Market Structure of Ghotki Branch

In Ghotki city the U bank is leading in microfinance sector with 27% of market share.
Khushhali Microfinance Bank Limited is second leading branch in Ghotki city with 24%
of market share. Telenor Bank Ghotki is in 3rd place with 21%, others (Individual’s
lenders, Institutes, commercial banks, showroom bike loaners etc. Which are indirect
competitors of KMBL) are on 4th place by 12% of market share, The First Microfinance
Bank is 5th with 9% and Apna Microfinance is on last position with 7 % of market share
in microfinance sector in Ghotki city.

Products Of Khushhali Bank Limited.

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CURRENT ACCOUNT

ASAAN ACCOUNT.

• Transactional account for low-income segment (as required by SBP

• Non-interest bearing account.

• Initial deposit of Rs.100.

• Two (2) deposit transection and two (2) Cheque withdrawals are allowed, free of charge,
through cash/clearing per month.

• Zero minimum monthly and monthly average balance requirements

• No fall-below fee

• Basic Banking Accounts with zero balance continuity for six months would be closed.

• Complete accessibility to funds via online branches (where available).

• USP

• No limit on number of transections

CURRENT DEPOSIT ACCOUNT.

• Non-interest bearing transactional account for mass market.

• Unlimited withdrawals and deposits.

• Complete accessibility to funds via online branches (where available).

• Fall-below fee: PRs. Nil

• Account opening charges: Nil

SAVING ACCOUNTS

MEHFOOZ ACCOUNT.

• Mehfooz is a transactional account with moderate return.

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• 6% APR on all balances.

• Daily product i.e. Interest is calculated on daily bases.

• Profit is paid out on a monthly basis and credit into the account at end of month.

• No minimum monthly balance required and no monthly average balance requirement.

• Cheque /cash deposit and withdrawal facility at online branches.

• Opening deposit requirement of Rs.500/-

• First cheque book is free.

• Account opening charges: Nil

• Account closing charges: Rs.100/-

• Fall below fee: Nil

Overall Observation in My Internship Program:

I observed in Khushhali Microfinance bank Limited Ghotki branch, there is no

discrimination among employees and they work in friendly environment and they
worked in a collaborated way. Branch Manager (Sir Razzaque Memon) treats all
employees equally and all employees are happy with their supervisor because he is not
so strict and treat his employees as a colleague and friend. In Khushhali Microfinance
bank Limited Ghotki branch I saw there is strict rule of dressing to wear executive dress
with tie and employees always used to follow this rule strictly.

From initial day to last day, CAO (Credit administration officer) Sir Zakeel trained
me. He is very hard working and work in timely manner. He almost gave me all
knowledge about KMBL and about employee’s work that means he gave me introduction
of all employees and their work and responsibilities. During internship I saw the
recruitment process that how they appoint an employee, I observed that they follow the
formal rules and regulation to appoint an employee, first they call them for interview that
was conducted by area manager after that they give 15 days’ attachment training in
branch to introduce all products, services, policies and responsibilities. After that they

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attempt test in KMBL headquarter in Islamabad, and conduct interview and give training,
now candidate is on work.

During My internship I gained a lot from Operation manager Sir Zafar Hakro who
really nice person with good attitude and he has more experience and all the time he tried
to give me knowledge that was helpful for me in practical life as well as working life. I
remembered when I was sitting with CSO (Customer Service Officer) Madam Azra
customers were sitting there and I was talking with customer sitting in front of me, I ask
a question why they get loan from KMBL not from others, she said KMBL provide loan
easily with convenient procedure where as others bank make issue while giving loan and
she said I am customer of KMBL for 7 years.

CSO she was very kind and religious person and always makes herself happy and
also others. She always gave me knowledge not only about her work but about Islamic
knowledge. Her work mostly to talk with customer and I observed that She talks with
customer politely. Others employees are busy all the time in their work, they also gave
me more knowledge about their work.

I observed that employees have more work from 9 am to 6 pm they worked but
their salaries are just enough and they do not get any incentives and allowance those
others commercial banks provide to their employees. That’s why there is high turnover in
Khushhali Microfinance bank Limited Ghotki branch. According to me there should be
the increment in their salaries and they should be rewarded with incentives and
allowances to motivate an employee,

Where there are people, means there is chance of conflict, in every organization
there is conflict. I also observed conflict between lower staff due to delay in work
because work is integrated each other. But I also observed that they sort out conflict
immediately by discussion with each other.

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Critical Analysis,
This 6-week internship offers me an incredible opportunity to gain real world experience
in banking sector especially in the field of Microfinance; it is really a great insight as a
student of Finance to look at the actual position and operations of Microfinance bank in
our region (Sindh) by completing internship in KMBL (Khushhali Microfinance Bank
Limited Ghotki branch).

During my this internship in KMBL (Khushhali Microfinance Bank Limited) Ghotki

branch a lot of internal information about Microfinance banks come in to my knowledge
which I could never be able to collect otherwise, the first thing I realized that KMBL
(Khushhali Microfinance Bank Limited) currently running with growing setup and have
many operating branches throughout the country, and these situated in every city
specially in Sindh the branches of KMBL (Khushhali Microfinance Bank Limited) are
located in the center of cities, but the Ghotki branch in which I have completed the
internship is not located in the center of city and the customers are mostly coming from
villages which are distant from city so in my point of view this can be the cause threat
for KMBL (Khushhali Microfinance Bank Limited Ghotki branch.

Second thing I observed that Khushhali Microfinance Bank Limited Ghotki branch has
poor advertisement and promotional activities that’s why very few people have
knowledge about the bank, its products/ offers and acquisition of customers usually done
through the relationship manager and loan officers, who daily visit different areas and
convince people to be the customers of bank. Even I don’t know that this bank exists
before this internship offered by our department.

The branch of Khushhali Microfinance Bank Limited at district Ghotki (Sindh) at which
I had completed my internship is a small operating branch comprises on one single office
where all employees assigned separate desks for work, but the branch is actively
contributing to open the opportunities for the local inhabitants with great commitment
and hard work, and its service quality is excellent because of its diligent staff members
who are very committed and professionally skilled. Loan cases and account opening
procedures completed in just one day and gold loans are processed within two hours,
which will increase the service quality as well as credibility of bank and other services
such as cash deposits and remittances also take less time to complete this is the best and

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competitive part of the bank, more than anything I learnt a lot apart from banking it has
been great experience for me to work in professional environment at bank.

KMBL (Khushhali Microfinance Bank Limited) Ghotki branch where I completed

my internship, there is very limited services given by bank there is no any telephone
banking, branchless banking and mobile banking facility, they just only focusing on their
deposits and loans.

They should have to introduce telephone banking, branchless banking and mobile
banking facility to increase profitability.

There is Limited number of ATM booth available in few branches. Khushhali

Microfinance Bank Limited (KMBL)

Conclusions
KMBL is growing rapidly in banking sector in Pakistan. Its larger branches are fully
computerized. It has currently largest number of branches in urban areas, and developing
its structure in rural areas too. As technology advances KMBL also making itself fast and
accurate in coming years the KMBL is looking for better infrastructure in banking in
Pakistan. As the World is going forward towards technology and advancements, KMBL
is also going step by step with all organizations. It has a good banking Structure, fast and
effective network. There is no such organization in the world that is free from problems
and challenges. Every concern has to strive and struggle a lot to be more profitable and
to get more competitive edge.

KMBL established when the micro finance industry in Pakistan is in starting phase,
Government of Pakistan is actively taking initiatives and implementing reforms for
growth of microfinance in Pakistan in order to boost its small and medium businesses.
Which offers number of opportunities to new institutions to grow and to acquire more
customers and earn profit, although the microfinance institutions are known for the
welfare of small and medium businesses, but in this era of immense competition the
organizations own welfare will be top priority for the management, KBL have a well

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establish management team which already possess the experience from serving different
organizations.

The management of KMBL is taking strategic steps to enable the bank to emerge as a
strong and progressive institution. It is continuing to make efforts to refine its products
and operations to make them more compatible. New deposit schemes have been
introduced and an action plan to maintain revenue growth in future.

During my internship I have learned many new things in spite of the knowledge gained
at university and also came to conclusion that education alone is not enough, practical
training in every field is crucial to become a successful manager.

From the discussion it can be concluded that Khushhali Bank Limited is playing an
important role in the economic development of the country and it has a prospect future to
have a very good position in the Banking sector. To do this it should increase
promotional activities to reach to the people easily as well as Khushhali Bank Limited
should focus on major banking activities that may increase the bank’s ranking and
financial performance position comparing with other banks. Such information assists the
management of this bank in creating appropriate financial strategies for attaining the
required planned financial performance.

In this internship program I observed that bank managers with understanding of activities
that would improve their bank’s financial performance and bank operation. Bank is
offering many products to its customers which are increasing the Profit margin of the
bank.

Every organization has positive and negative aspects. In my six-week internship I

realized some positive as well as negative aspects of branch:

• Khushhali Microfinance Bank Limited is a leading Microfinance bank in Pakistan.

• Khushhali Microfinance Bank Limited has broad network of branches in Pakistan.

• Khushhali Microfinance Bank Limited offers a number of Products (Services) to

cover most of the financial market.
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• The infrastructure of branch is poor, old furniture and scratches in building floor.

Recommendations
It is really difficult for me to find out any significant negative sides of Khushhali
Bank Limited among its numerous positive sides in terms of efficiency, profitability
and managing banking activities. However, there are few problems which need to be
corrected by the management of the bank. Some necessary steps are recommended
below on the basis of collected data, observation, and my knowledge and judgment.
The best organizations always take innovative steps for their growth and betterment
although I have worked only for six weeks but according to my understanding the
bank should work on following areas to be more successful and apart from the
strength of bank that need to improvement. Following are some of the suggestions
and recommendations that I want to give on the basis of shortfalls / weaknesses found
in the bank.

✓
Introducing new marketing strategy to attract more clients, this will help to attracts
customers.

✓
For motivation of employees, Attractive incentive packages should give to low level
management and officers; this will help to increase their capability of doing work.

✓
Effective training is very much essential for the relationship manager and loan
officers so that they increase the loans and can easily deal with their valuable
customers.

✓
KMBL should increase the number of ATM booths to facilitate customers.

✓
KMBL should have to give some extra benefits to their loyal customers to increase
profitability.

✓
KMBL should have to give remuneration, incentives and other benefits to their
employees to motivate them for accepting new challenges in the market.
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✓
KMBL should introduce new products to make their customers more attractive by
increasing loan amount limits from micro loans to macro loans.

✓
The management should formulate innovative strategies and policies for the
betterment of product and service quality of the bank year after year.

✓
KMBL should improve branch infrastructure and work environment for employees.

✓
KMBL should focus on Marketing of their products, advertisement to introduce new
and existing products innovatively. In my internship I noticed that there is not poster
advertisement or television advertisement. People are not much aware of the KMBL
offerings so if KMBL focus little more on advertisement then it can increase number
of clients in branch and overall, in organization.

✓
Marketing says if your product is not placed properly then u can’t get much sales and
revenues, KMBL Ghotki branch is placed in wrong area according to trend and
fashion of new age, so it is unorthodox for people to travel KMBL Ghotki Branch. It
should shift towards the center of Ghotki city where most of the people visit for daily
work/businesses and it will be very convenient for people of Ghotki to visit KMBL.
There is chance of getting more market sharing by capturing new customers and the
dropout customers of other banks.

✓
KMBL can offer new products (services) Such as:

o Rickshaw
loaning. o Bike
loaning.

o Tube well loaning

o Electric Generator loaning

o Solar electric system for home/business Loan

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 References, and Sources.
• Official website https://khushhalibank.com.pk/aboutus)

• Annual report.

• Quarterly report.

• Consultation with Former Interns

• Brochures.

• Personal interaction with bank staff.

• Personal survey.

• Training Guide.

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