19468051 Internsp Report on Faysal Bank Ltd by Linky City

8/9/2019 19468051 Internsp Report on Faysal Bank Ltd by Linky City

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Internship Report on Faysal Bank Ltd.1 1

Definition Of Bank:

There are different definitions of banks according to the function performed with it.Some of them are:

According to Mr. Crowther:

He defines bank as;

A bank is a firm which collects money from those who have spare. It lends money tothose who require it.

According to Mr. Parking:

He defines bank as;

A bank is a firm that takes deposits from households and firms and makes loans toother households and firms"

According to www.dictionary.com:

The definition given in this site is:

Abusiness establishment in which money is kept for saving or commercial purposesor is invested, supplied for loans, or exchanged

The Islamia University of Bahawalpur, R Y K Campus


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Kinds of Bank:Every bank has different features. On the basis of functions, spheres of activities,

ownership, domicile, etc, the banks are classified into various types, which are:

Classification on the basis of Functions.

Classification on the basis of Ownership.

Classification on the basis of domicile.

Classification as Scheduled bank and Non-scheduled bank.

Classification on the basis of Function:

On the basis of function, we can classify banks are in the following ways:

Central Bank

Commercial Banks

Exchange Banks

Saving Banks

Agricultural Banks

Classification on the basis of Ownership:

On the basis of Ownership, we can classify banks are in the following ways:

Public sector banks.

Private sector banks.

Cooperative banks.

Classification on the basis of Domicile:

On the basis of Ownership, we can classify banks are in the following ways Domestic Banks.

Foreign Banks

Classification as a scheduled &Non-scheduled bank:

On the basis of Ownership, we can classify banks are in the following ways

Scheduled Banks.

Non-scheduled Banks.



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LIST OF BANKS OPERATING IN PAKISTAN

NATIONALIZED COMMERCIAL BANKSFirst Women Bank, Limited

Habib Bank Limited

National Bank of Pakistan

United Bank Limited

DE-NATIONALIZED COMMERCIAL BANKS

Allied Bank of Pakistan Ltd

Muslim Commercial Bank Ltd

SPEICALIZED SCHEDULED BANKS

Agricultural Development Bank of Pakistan

Federal Bank for Co-operatives

Industrial Development Bank of Pakistan

Punjab Provincial Co-operative Bank Ltd

PRIVATE SCHDEULED BANKS

Askari Commercial Bank Ltd

Bank Alfalah Limited

Bank Al-Habib Limited

Bolan Bank Limited

Faysal Bank Limited

Meezan Bank LimitedMetropolitan Bank Limited

PICIC Commercial Bank Ltd

Platinum Commercial Bank Ltd

Prime Commercial Bank Ltd

Soneri Bank Limited

Union Bank Limited



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PROVINCIAL BANKS

The Bank of Khyber

The Bank of Punjab

MICRO-FINANCE BANKS

The First Micro Finance Bank Limited

FOREIGN BANKS

ABN Amro Bank N.V.

Al-Baraka Islamic Bank B.S.C.(E.C.)

American Express Bank LimitedBank of Cylon

Credit Agricole Indosuez

Citibank N.A.

Deutsche Bank AG

Doha Bank

Habib Bank A.G. Zurich

International Finance Investment & Commerce bank Limited (IFIC)

Mashraq Bank psc

Oman International Bank S.O.A.G.

Rupali Bank Limited

Standard Chartered Bank

Standard Chartered Grindlays Bank Limited

The Bank of Tokyo-Mitsubishi Limited

The Hong Kong and Shanghai Banking Corporation Limited



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Vision & Mission of FBL

Vision

"To be the bank of first choice with the highest ethicalprinciples as our guiding force"

Mission

"To excel in providing innovative, value based bankingsolution to meet the changing needs of customers and

future strengthen our image of trust and reliability"



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Introduction of FBL:Faysal Bank started operations in Pakistan in 1987, first as a branch set-up of FaysalIslamic Bank of Bahrain and then in 1995 as a locally incorporated Pakistani bankunder the present name of Faysal Bank Limited. On January 1, 2002, Al FaysalInvestment Bank Limited, another group entity in Pakistan, merged into Faysal BankLimited which resulted in a larger, stronger and much more versatile institution. Infact it has the highest share capital amongst private banks in Pakistan and is amongstthe largest in terms of equity.

Faysal Bank Limited is a full service banking institution offering consumer, corporateand investment banking facilities to its customers. The Banks widespread andgrowing network of branches in the four provinces of the country and Azad Kashmir,together with its corporate offices in major cities, provides efficient services in aneffective manner.

The strength and stability of Faysal Bank Limited is evident through the Credit Ratingassigned by JCR-VIS Credit Rating Company Limited of AA (Double A) for longto medium term and A-1+ (A One Plus) for short term.



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Objectives

To offer the market banking products and services which are needed,convenient, marketable and Shariah complaint.

To grow as an institution with prudent growth and profitability in view.

To build relationships based on trust and mutual benefit with customers andshareholders.

To maintain a highly efficient and motivated employees base.

To continue being socially conscious organization.

Strategic Planning

Expanding our channels of distribution Delivering banking products and services with efficiency and effectively.

Introducing technological and procedural efficiencies into all aspects of ourbusiness.

Striking the right balance between risks and rewards.

Providing growth and developing opportunities to employees of the bank.



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Our values:

Integrity:

We will hold fast to the highest standards of ethical conduct to meet our commitmentto our customers, employees and shareholders above all, we will hold true to our

personal commitment and conviction to the truth.

Corporate Governance:

Our goal is to respond to a rapidly changing business environment t in a timelymanner, to improve corporate citizenship and transparency by reinforcing our ethical

standards and building a relationship of trust with customers and stakeholders.

Corporate Social Responsibility:

We believe that the highest standards of engagement must not only be with ourstakeholders, employees or customers but also within the community in which wework and live. We abide by the laws of Pakistan in which we do business, we strive to

be a good corporate citizen and take full responsibility of all our actions.

Responsible Communication:

We commit to creating a dignified workplace based on honest, open and respectfullycommunication. We first listen with the intent to understand and then communicateideas, results and information forthrightly.

Excellence:

We are committed to the highest level of personal and professional excellence andoperate with a goal of continuous improvement.

Teamwork:

As a team, we play to win from the smallest unit to the enterprise as a whole .Weachieve far more as a team than as individuals.



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Respect:

We appreciate our diversity and believe that respect-for our employees, customers,stakeholders and all those with whom we interact is an essential element of all

positive and productive business relationship. We treat everyone as we wish to betreated, with dignity and respect.

Quality Service:

The moment of truth is impact through every employee's interaction. The essence ofquality service is embodied through every interaction that we have, within ourselvesand with our customers.

Awards & Rewards:

During the year Faysal bank was placed in the top 25 performing companiesby the Karachi Stock Exchange (KSE) for the year 2003. This was a singular

honor, as Faysal bank was the first event scheduled bank to have relevantthis award.

Also during year the annual report of Faysal 0bank for the year 2003 wonthe third prize in "the best Corporate Report" contest in the services sector ,a competition jointly instituted by the institute if Chartered Accountants ofPakistan and institute of cost and management accountants of Pakistan.

The annual report of Faysal bank for 2006 won the first price in the BestCorporate Rewards organized by a joint committee reviews annual reports of

all listed companies with a view to rewarding the best in terms of quality ofpresentation and financial disclosures.

Faysal bank was also awarded "Certificate of Excellence" in commercialbanking category by Management Association of Pakistan (MAP). MAPinstituted this award in 1982 with the sole aim to recognize and honorcompanies showing outstanding performance and demonstrating progressive& enlightened management practices. This award denotes the excellence ofBank's Management and its corporate Governance Policies.



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Holding Company of FBL:

Ithmaar Bank B.S.C, an investment Bank listed in Bahrain is the ultimate holdingcompany of Faysal Bank; DMI group continues to be a major shareholder of IthmaarBank B.S.C with 42% stake.

Subsidiary Company of FBL:

Faysal Bank has one subsidiary Faysal Management Services (Pvt.) Limited (FMSL)with 60% holding. Till last year Fayzan Manufacturing Modarabe (FMM) managedby FMSL was also a subsidiary, However on competing its term FMM was liquidatedduring the year. All winding up formalities have been completed except for issuanceof winding up certificate by Registrar Modarabe

Due to winding up of Modarabe, FMSL is now expected to launch another venture innear future. Last year FMSL had earned dividend income of Rs. 56.88 million andmanagement fee of Rs. 2.7 million from FMM. FMSL declared dividend of Rs. 40.95million during the year.



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Corporate Information

Board of directors:

H, R.H Prince Mohamed Al Faysal Al Sau Chairman

Zhid H.Rawashdeh Chairman

Khalid S. Trimzey President

Graham Roderick Walker Director

Mohammad A. Rehman Bucheerei Director

Tariq Ibal Khan Director

Sanaullah Qureshi Director

Shahid Ahmed Director

Audit Committee:

Tariq Iqbal Khan ChairmanGraham Roderick Walker Member

Sanaullah Qureshi Member

Southern Region Management:

Ahmed Hemani Regional Head

Masood Jaffri Area Manager

Riaz Ul Hassan Area Manager

Central Region Management:

Bashir A.Shaikh General Manager

Muhammad Idrees Area Manager

Afzal Haq Area manger

Mirza Shauq Hussain Area Manager



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Northern Region Management:

Sharif Khawar Regional Head

Umer Kitchlew Head of Corporate Banking

Syed Mustafa Aftab Shah Area Manager

Head Office Management:

Khalid S. Trimzey

Ahmed Kamran

Taimur AfzalMohammad Iqbal

Shahid Waqar Mehmood

Iqbal Ahmed Zuberi

Sohail Nawaz

Arif Hassan Khan

Seemin Shafi

Parwaz Ahmed

Irfaunddin

Irfan A. Khan

Samih Khan

Mustafa Hamdani

Jamil Irshad

Khwaja Jamil Shah

Ali Raza



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Bank's Performance in View of Directors of FBL:By the grace of GOD, your bank continued to exhibit strong performance in 2007.

Bank's strategy and its execution were aptly tuned to positively respond to thechallenges of the operating environment. The bank made commendable progress tofirmly establish its leadership in the market in all areas including business, operations,risk management and corporate governance.

On the business front, we continued to outpace the market growth in both deposits andadvances. Deposits increased to PKR 102 billion, 37% against the market growth of18% (Deposits growth is impressive, though in line with the changing industry trends,a portion of the incremental deposits pertain to whole-sale price sensitive deposits).Advances increased to PKR 87 billion, 17% against industry growth of 10%. As credit

off take slowed in response to the restrictive monetary stance of SBP, we focused oninnovation and service delivery to attain growth and increase in our market share. Onthe Corporate and investment banking side, we successfully undertook syndicatedtransactions worth PKR 91 billion in high growth segment such as physicalinfrastructure, steel, Power & services. We also archived targeted growth in SME.

As a part of our strategy, this year we focused on Agri finance. Our approach to thisarea is comprehensive covering all faces of Agri financing. The bank has alsolaunched an impressive print and electronic c media. We continued to expand our

population coverage and have reenergized our services suit through rationalizing, re-

branding (with added features) and introducing products. During the year weincreased our network by 30 modern and customer centric branches and 6 servicescenter .We also increased our ATM network to 81 by adding another 31 time cashdeposits facility as well. We introduced "Faysal Moavin" checking account, and "FCYsaving plus account". Our current account "Faysal Sahulat" and term deposits "FaysalIzafa" were also relaunched with added features to become integral part of ourdeposits product portfolio.

VISA debit card, and have thus become one of the few banks offering plastic withinternational acceptability. Market has given a very positive response to theseinitiatives.



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Technology is a key element of our strategy .During the year we successfullycompleted migration to SYMBOLS, which commenced in 2005. The bank is in the

final stages of implementation of Oracle Financial. This enhanced technologyplatform allows the bank to centralize many processing functions giving costefficiency and control effectively. It has also allowed implementation of reliableBusiness Continuity and Recovery plans (DRP)

We believe "Service Quality" is the most important competitive edge in our business.Keeping this in mind, we had declared 2007 as the "Year of Service Excellence". Inthis regard : a service enhancement plan was developed and implemented ,a servicemanual was developed and disseminated across the staff, complaint management

process was revamped ,24/7 call center was established and frequency of service

monitoring related activities has been increased significantly.



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ORGANIZATIONAL STRUCTURE

FBL is successfully meeting all its objective software programs that are installed foreach department that has increased their efficiency and they can take any informationwhich is no time from any of their branches/clients are getting quick response due totheir efficient network and staff members.

This branch is very well managed and staff is working devote and work for his/herpersonal work they are committed and loyal to their work everyone is ready toperform other work, if he or she is not there, to prevent customers from suffering theabsence of an employee the other one perform his/her duty with whole heartedly.



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Organizational Structure Of

Rahim Yar Khan Branch


Manager

Agri

Department

Operation

Manager

CashLocker

s

Dispers

ement

Advance

s

Accoun

t

Bills &

Remitt

ances

Clearin

g


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Layout of Departments in Rahim Yar Khan Branch


Entrance

Agricul

tureDepart

ment

Cash

Department

Locker &Western Union

Department

Operation

Manager

Accoun

t

Openin

g

Depart

ment

Stairs

Ground Floor


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Stairs

AutoFinanci

ng

Dep't.

Auto

Financi

ng

Dep't.

Auto

Financi

ng

Dep't.

Housing

Department

Disperseme

ntDepartmen

Advances

CadDepartmen

H.R & IT

Department

I.T

Room

Conference

Room

Manager's Room

Personnel

Loan

First Floor


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Products & Services Of FBL

1) Demand Deposit 4) Fund Based Loan

Current Account Running Finance

Saving Account Cash Finance

Fixed Account Staff Finance

Call Deposit Receipt Faysal Personal Finance

Agri. Finance

2) Time Deposit

5) Non-Fund Based Loan

PLS saving Deposit Letter of Credit(LC)

Faysal Moavin Savings Account Letter of Guarantee(LG)

Faysal Savings

Rozana Munafa Plus 6) Miscellaneous Products

Faysal Izafa Pay Order

Faysal Mahfooz Sarmaya Deposit Slip

Faysal Saving Plus

Faysal Premium

3) Lockers

Small Size Lockers Medium Size Lockers

Large Size Lockers



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DEPARTMENTS OF FBL

Following are the Departments of FBL:

1) General Banking

a) Account Openingb) Bills And Remittancesc) Deposit Departmentd) Cash Department

2) Credits and Advances Department

3) Agri. Department

4) Western Union & Locker Service Department

5) Housing Department

6) Auto Department

7) Cad Department

8) Dispersement Department



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Account Opening Department:Account opening is the first step in business of banking to create the relation of public

with bank as a customer. Now customer becomes creditor of bank. It is mostimportant department of bank and bank officers must take special care before openingthe account.

Account Of General Customers

Illiterate person account

Joint Account

Accounts Of Special Customer

Proprietor Ship Account

Partnership Accounts

Limited Companys Account

Agents Account

Clubs, Societies /Association Accounts Trusts Local Bodies Etc.

Account opening procedure

The general procedure of all account's opening is same but the document required toopen the account is different according to type of account.

The branch manager is responsible to handle job of account opening but in some

cases, it is assigned to other responsible officers. Information at the time of opening ofaccount, the bank officer must assure that customer has the following characteristics:

The customer must have the age of majority, it means he must be the age of 18according to law.

The customer must be of sound mind.

The customer must not be insolvent and bankrupt. .



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Also the bank officer must take proper information from the customer about his

Means, line and place of business.

Account Opening Form (AOF)

The bank officer must assure that the customer fills each and every column of accountopening form correctly with all necessary details. The specific information about the

business or occupation of the customer is recorded in the form. It is preferred that thecustomer in the presence of introducer fills account opening form.

Introduction of Accounts

It is a most important column of AOF. Without the proper introduction, the newaccount cannot be opened. The bank officer consider following precaution in thisrespect.

The introducer should come with the prospective customer to the bank, so therewill be no doubt about the identity of customer.

If the introducer does not come then bank officer must take extreme care abouthis signature verification.

The staff member can become introducer if they personally known to the

prospective customer.

National Identity Card

The bank officer check that number of national identity card is correctly recorded inthe AOF and a copy of national identity card is kept in record by the bank.

Specimen Signature Card (SS Card)

The bank officer takes signature of customer on AOF and specimen signature card.

NADRA Verification:

Verification of customer ID card is also necessary from NADRA. NADRA alsoprovide there software to FBL that they personally take verification in Bank.



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Indemnity Form:

If the customers signature are shaky than he will also sign the indemnity form in

which he mentioned that Bank is not responsible for any obligation about his

signature.

KYC (Know Your Customer) Form:

In this form bank write all information about customer e.g. title of account, Accountnumber, business detail etc.

Visa Debit Card Application Form:

If customer also wants to gain facility of Debit Card or ATM card than thisapplication form is also filled by customer. After filling this application by customerthis application is forward to head office, than head office sends the ATM card.

Two Photographs of customer:

With form two photographs of customer is also attach with form if the customer isilliterate and use thumb impression instead of signature, if the signature are in Englishor Urdu than photographs are not required.

Letter of Thanks

A letter of thanks is sent to customer through mail to verify his address. If the address

is not sending his address than bank quickly take action and can close the account.

Individual Accounts

Individual accounts are classified as:

a. Accounts of illiterate ladies and gentlemen

b. Joint Accounts



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Documents required to open individual account are:

a. Account Opening form (AOF)

b. Specimen Signature Card

c. Copy of NIC

Accounts of illiterate ladies and gentlemen:

In case of illiterate ladies and gentlemen, three photographs are required. Two ispasted on AOF and other is pasted n SS card. Instead of signature, left-hand thumbimpressions are obtained on specimen signature card from gents and right hand thumbimpression from ladies.

At the encashment of Cheque, these customers are advised to attend bank personallyand put their thumb impression on the Cheque. If the cheque is presented throughclearing then it will also only pay to the customer.

Joint Accounts

The bank will fulfill the stop payment instruction of any cheque lodged by any

member of joint account but removal of these instruction must be signed by allthe member

If any member dies then there will be no transaction in the account and balancein the account will be paid according to instruction recorded at the accountopening form.

The member of joint account can delegate authority to any third party to operatethe account. All the members Sign such mandate but it will be cancelled if anyof the member dies or insolvent.



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Account of Special Customers:

Partnership Firm Account

The documents required for these accounts are:

Account Opening Form

SS Card

Copy of NIC of all Partners

Copy of registration certificate

Copy of partnership Deed

The partnership accounts are opened under the following conditions:

Partnership firms can open only current account due to business concern.

All partners must sign the account opening form.

Account is opened with the name of Company When them changes are taking place in the firm structure or if the firm is

declared as insolvent then transaction in the account will be stopped. In case ofinsolvency, the personal accounts of partner will also become inoperative.

Joint Stock Company Account

Joint Stock companies include:

Private Limited Companies

The companies whose share capital is not offered to the general public instead theoffer is restricted to particular class of society or within the family members called

private limited. These companies are not listed in stock exchange and are nottransferable.



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Public Limited Companies

Promoters and general public contribute the share capital of these companies. Thesecompanies are listed in stock exchange and their shares are transferable and broughtand soled freely in stock exchange.

The document required for these accounts are:

Account Opening Form

SS Card

Up to date Memorandum Article of Association

Certificate of incorporation.

Certificate to commence business.

Resolution of board passed under company seal to open account.

NIC

Passport of all the directors authorized signatures.

List of directors authorized signature

The specific conditions to open the account of Joint Stock Company are:

Introduction is not required for these accounts because companies are legalentities Death, retirement or dismissal of any director does not effect operationon the account.

However, death, retirement or dismissal of the directors authorized to operate

upon the accounts temporarily put embargo on operations of the account. Insuch cases, fresh resolution authorizing another person to operate upon theaccount is to be called for from the company.

The Cheques signed by the directors before their death retirement or dismissalwill be considered as valid instrument.

The operation on the account will be stopped when company terminates itscareer.



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Accounts of Clubs & Societies

These are non-trading/non-profit organizations and are formed for the promotion ofculture, education, recreation activities and charitable purpose etc.

Account opening procedure is same as mentioned before.

Title of the Account

Account must be opened in the name of the organization .

The document required for these accounts are:

Copy of Bye-laws/regulations

List of members of managing/Executive committee

Copy of certificate of registration (if registered)

Copies of NICs of the members of executive committee

Issuance of Cheque Book

The customer fills the Requisition slip for issuance of cheque books along with theAOF. The requisition slip is duly signed then bank officer enters cheque book serieson it. The officers enter the series of cheque book in register in a sequence .The Bank

issue 25, 50, 100 leaves cheque books.On 25 leaves cheque book charges are 200 Rs.

On 50 leaves cheque book charges are 400 Rs.

On 100 leaves cheque book charges are 800 Rs.

When cheque book issue than bank take signature on cheque book register and also onrequisition form.



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Maintenance of Account:

If amount in account is less than 10000 than 50 Rs. Per month will be deduct as a

maintenance charges

Inactive Account

If there is no transaction in any account within 6 months then account will becomeinactive. Now the account will be active only by crediting some amount. Basicallyaccount is deactivating for the verification of customer.

Closing of Account

If the customer wants to close the account then he will fill the closing application formalong with unused cheque book in the bank. The bank will pay remaining balance toaccount holder.



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Locker Service Department:Basically locker shall be rented out to most valued customers of the branch .The termsand conditions are mentioned on the form which is used for providing the services oflockers.

Renting Of Lockers:

On grant of the locker to the customer, the relationship between the bank andthe customers is that of Licenser & Licensee, where the bank shall be thelicensor and the customer is the licensee.

Locker may be hired in joint names. However, lockers in joint names shall berented only when both or all the customers sign the application form.

All record of the lockers is recorded in the "locker recorded register"

Operation on Lockers:

The access to lockers is allowed during working hours i.e. from 9 am to 5pm.

The signature of the licensee shall be verified from the specimen signature cardor from computer system.

One key of locker is under the custody of Bank and the other key is operated by

customer .The locker cannot be opened unless both keys are not used.

In case of termination of the contract, the licensee will be required to surrender

the original keys of the locker.

Two or more than two persons can also operate the locker.

Account of licensee is necessary in Bank.

Size of Lockers:

Size Height Width Depth

Small 4 1/2" 7" 22"

Medium 4 1/2" 14" 22"

Large 9" 14" 22"



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Charges of Lockers:

In FBL total lockers are 144

Small are 54

Medium are 72

Large are 18

The key charges of all types of lockers either small, medium or large lockers1500.

Small Locker 1200 Rent /year + 1500 key charges

Medium Locker 1700 rent/year +1500 key charges

Large Locker 3500 rent/year +1500 key charges

Insurance of Lockers:

Insurance of Small Lockers 500000 Rs.

Insurance of Medium Lockers 800000 Rs.

Insurance of Large Lockers 1000000 Rs.

It is necessary for a customer that never put things whose worth in aggregate is morethan the insurance of locker

Lost Of Keys:

Of the keys are lost than its charges are 4500/locker small, medium or large locker.Actual charges of keys are 1500 but if the keys are lost than locker is repaired andnew keys are used.

If the Owner is dying:

If the person who operates locker is die than its relatives consult the court and lockeris broken under the custody of court, than all things which are found in lockers aresold and the amount is divided in relatives.

If the person is mentioned the name in his life that who will operate the locker afterhis death "Power Of Attorney" than that person will be the owner of that locker.



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Why Break the Locker:

When Bank come to know that in locker there can be illegal or dangerous things thanBank can break the locker.

If the customer not pay all its dues or rent of locker than locker can also break. Beforebreaking the locker Bank send three notifications with the gap of one week tocustomer about his dues and finally add is published in any well known newspaper ifthe customer not pay his dues than locker is broken.

Locker is broken under the custody of three Bank Officers and make list of all thingswhich are founded in locker and officers signature the list.

Repairment of Lockers:

Bank has contract with Abdullah & Sons Company for repairing of lockers .Theycharge 4500 per locker Repairment. Company is situated in Gujran wala. Locker isrepair every time when customer terminates the locker.

Termination of Locker:

When customers want to terminate the locker than both keys are broken and lock isalso broken and locker is again repair for the new customer.



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Western Union Department:

Basically Western union department provide service for receiving of money fromdifferent countries. Through western union you can only receive money but cannotsend the money to other country .The main advantage of western union is that it is notnecessary that the person who is going to receiving money has account in bank .Hecan receive money without account because the money is not transfer in account .Thecustomer directly receive the money from bank. Mostly the amounts are in the form ofPKR, Dollar Euro and in Pond.

Charges:

On 15000 100 Rs.

Above 15000 400 Rs

Advantage:

The main advantage of western union is that account is not necessary of the person

who is going to receiving money.

Disadvantage:

The disadvantage of western union is that the money which is received throughwestern union is never recorded in bank so; this money is not accepted in legal affairs.Because this money has no proof that from where it is earned so, it is not accepted.

Through western union you can only receive money but you cannot send the money toany other country.

Alternative:To overcome the disadvantage of western union, FBL provide the facility of Bank toBank transferring of money. The money is transfer from FBL to foreign bank. Thecharges are 15$ per transaction.

The money is transfer through NOSTRO bank.



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Documents required for western union:

Western union form

CNIC copy

Process of western union:

The person who is going to transfer money he had swift code which is issued by theforeign bank from where he is going to transfer money. The person already mentionsthe name to whom he transfers the money. When he transfers the money in FBL thenthat person came with its ID card and after verification he can receive money.



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Cash Department:Cash department is the most important because it is point of contact between the bankand the customer. The FBL provides efficient and personalized services to theircustomer. This department creates the impression of bank commitment of

professionalism in its system and procedure. So the staff of cash department is wellequipped and trained not only in technical handing of cash but also in the art ofcustomer.

Functions of Cash Department

It includes:

Receiving cash from the customer.

Making payment to the customers against their Cheques or other paymentinstruments.

Handling cash withdrawal and deposit into the bank account with state bank ofPakistan and with other branches of bank.

Ensuring proper storage safety and security of he cash in cash.

Ensuring proper cash management and sorting out of issue able cash.

Maintaining daily cash position in SYMBOL system.

Transfer of Cheques from one account to another.



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Cash department has two counters,

Cash Receipt Counter

Cash Payment Counter

Cash Receipt Counter

If the customer wants to deposit in his account then he fills the deposits slip. Indeposit slip, the customer writes his account title, account no, the amount in figures &words, particulars mention the mode of deposit either cash or cheque and sign it. Thecustomer makes the payment to cashier along with the deposit slip.

The cashier checks the details of deposit slip and The officer credits the customeraccount with the same amount and sign on the deposits slip .But if deposits is in formof Cheques then he makes a deposit slip of the same amount which is written oncheque and also write the name of branch ,bank name and cheque no.. He posts thetransfer stamp and sign on deposit slip and cheque is transfer in customer account.Finally customer copy is returned to customer as receipt.

This department of bank deals in operation, relating to cash A/C. i.e. cash receipt, cashdeposit, sale and purchase of prize bond.

Cash Payment Counter

When the customer present the cheque to withdraw the money the cashier check itsdate, amount in figure, signature and either it is f FBL ,RYK branch or any other

branch or it is of RYK branch of other bank. If it is of FBL, RYK branch with rightdate then cashier enter into cash payment book and transfer to the officer. The officerfeed the account number to check that demanded amount is available in his account. Ifamount is available then he verifies his signature from SS card already feed incomputer.

The officer passes the cheque and debits the customer account with the same amountand posts the stamp of transfer on it. Then cashier makes the payment to the customerand writes the detail of notes at the back of cheque to maintain daily cash position.



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The cheque can be returned to the customer due to following reason:

If the cheque is post dated; i.e. some future date is written on it.

If the date is of 6 months back. If the amount in figure and words is different.

If any cutting is made on the cheque.

If the cheque is of other branch of FBL then it will send to bill department. Andif the cheque is of RYK branch of other bank then it will send to clearingdepartment.

If one account holder wants to transfer some amount from one account to another,then he will give the cheque favoring the other account holder and also fill the depositslip. The cashier after checking the details and enter in the register transfer to theofficer. The officer transfers the mentioned amount from one account to another.

Bills & Remittance Department



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Remittance department plays an important role in transfer of funds from one place toanother. Faysal bank provides this service to their customer, as will as general clients.Different instruments are use to remit the money.

The following different instruments are used to remit the funds in FBL.

Demand Draft

Pay Order

Call Deposit Receipt

Demand Draft:

Demand draft is used to transfer amount from one city to other city where there is nobranch of FBL than demand draft is used. When there is no branch of FBL than in thatcity there will be another bank which provides agency services to that bank. Habib

bank provides agency service to FBL e.g. in khanpur there is no branch of FBL thanDD will pay to Habib bank. But now a day FBL not issue demand draft.

Pay OrderPay order is issued for payment in the same city because it is issued form one branch

can only be payable form the same branch.. Through pay order customer can transfermoney from one branch to another branch. FBL charge no 75 Rs. Per pay order. Instarting of Faysal Bank pay order is only payable in that branch from where it isissued but now a day it is pay able in any branch of FBL in Pakistan.

Difference between Pay order & DD:

The main difference between DD and Pay order is that pay order is payable with incity and DD is payable outside the city. Pay order is payable in only that branch fromwhere it is issued while DD is payable in any branch of FBL.

Call Deposit Receipt (CDR):

It is also called pay slip and it is used for security purpose. If any person makescontract with Govt. for a specific purpose e.g. for construction of roads than he makes



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CDR. Bank Dr the account of client and Cr the CDR if road is damage before time.But if road is not damage till contract than bank refund the money.

Clearing Department:



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All the cheque and negotiable instrument, which are drawn or received from otherbank, are processed and subsequently settle by the clearing department.

For a bank, following are the requirements of being a member of clearing house:

It must be scheduled bank i.e. it is registered

It must have account with State Bank of Pakistan

Sufficient balance should be in his account

Normally clearing is carried out in SBP, but in the city where there is no branch ofSBP than National Bank work as subsidiary of SBP.

Types of Clearing:

There are two types of clearing

Inward Clearing

Outward Clearing

In inward clearing the Cheques of other banks comes in Faysal Bank while in outwardclearing the Cheques of Faysal Bank goes to other banks. All clearing is carried out in

NBP in Rahim Yar Khan.

Process of Clearing:

At 10 am authorized representatives of all the banks of the city get together in SBP orNBP for 1st clearing, where exchange of Cheques take place, here 1st clearing ends.Representative of FBL takes the FBL cheques these cheques are entered in the inwardclearing register and than delivered to respective branches of FBL. And the cheques ofother banks are gives to other banks. At 4 pm all the representatives again gettogether and exchange of cheques take place. There is no physically or receipt of cashtakes place, actually every clearing house agent has account with SBP which isdebited or credited.



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Credit Department:Credit department is one of the most important departments of the bank. Assets areresources of any organization and Advances are most valuable asset of the bank.Credit department takes money from depositors at certain rates and utilizes these

funds by extending loans at specified rate to the creditors. The difference betweenthese two rates is the profit of bank. So it is major source of profit. The creditdecisions are carefully analyzed because advances create risks for the bank.

When the requested amount exceeds the credit limit of level then case is sent to upperlevel. All the loans sanctioned at branch level must be approved by area office.

Functions of Credit Department

Credit department performs two basic functions:

1. Credit Administration

2. Credit Appraisal

Credit Policies of FBL

Follow the Prudential regulations and other SBP directions.

Follow the principles of good lending.

Avoid concentration of credit in one particular sector.

Concentrate mainly on short-term self-liquidating advances e.g. export billsadvances of maturity of one year.

Encourage trade financing.

Monitor credit on a regular and on going basis.

Review credit facilities at least once every year. Advances not to exceed 70%.

30% will be margin



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Principles of Good Lending

Before the issuing of any loan, five principles of good lending must be

considered.

Safety

Suitability

Liquidity

Disposal

Remuneration

Safety

The bank can reduce the risk by this principle. Always extend the loans against pledgeof liquidity security and only those persons that have ability to repay

Suitability

Always extend loans to most suitable sector and growing industries and business.

Liquidity

It is the most important principle. Collection of credit is most crucial so bank alwayspledge those securities, which are most liquid and can be en-cashed within oneaccounting period. And earnings are available to repay the credit.

Disposal

After portfolio analysis, loans should be extended to different sector and not to onesector to maintain balance growth of economy.

Remuneration

Lending must be generating profit; that is ultimate goal of lending.



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Risk Analysis

The high risk gives the high return. Bank analyzes their risk on advances by applying the five Cs.

Character

Capacity

Cash

Collateral

Condition

Character

The moral and social character of individual is analyzed. The individual should not beinvolved in any illegal and unethical business. Past payment history is analyzed that

should always pay his obligation in time.

Capacity

Credit officer analyzes the capacity of borrower to take loan and ability to repay therequested credit. The credit officer decides by the calculation of liquidity of companyand debt ratio.

Cash

Cash is considered to analyze the ability of repayment. These must be regular and

proper cash flows because they provide liquidity to refund the loan.

Collateral

Bank always secures their loans with collateral. Collateral is security that applicantprovide against the loan. It is important because it builds stake of creditor and if theapplicant defaults then bank will adjust his loan and mark up by it.

Condition

Different conditions are considered by the bank to minimize the risk. These conditionsrelate to industry and country economic condition.



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Mark Up on the Loan

Rate of mark up depends upon three elements:

Volume of loan

Time period

Liquidity

So the rate of mark up is varied in every case. Mark up is calculated at daily basis butit is charged at the end of the month. When the customer pay mark up then credit

officer debit the customer account and credit to bank income.Types of Loans:

Faysal Bank provides two types of loan that are:

1. Fund Based Loan

2. Non Fund Based Loan

Fund Based Loan

In this type of finance, bank actually deploys its funds and mark up is charged on it.ACBL provide the following types of fund-based loan

Running Finance

It is also called over draft because bank provides an extra credit limit to customer.Running finance is a secured loan because bank provides extra credit limit againstsome security. The customer can avail this credit limit at any time of the maturitytime period; which is normally one year. But if the conduct of customer is satisfactoryand customer can avail this facility to the extended period, then this limit is roll over

to next year.

The cheque book is issued and customer is flexible to draw with in the drawingpower. The customer is allowed to withdraw the defined extra credit limit or a portionof it. The customer has free will to debit or credit his account again and again up tospecified time period of maturity, so it is called running finance. Rate of mark upvaries in every case. Mark up is calculated at daily basis.



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Cash Finance

Cash finance is like a running finance but it is extended against the pledged securitylike inventory, stock or land and 30% cash margin is also charged. The pledged stockis also insured from any insurance company and the customer also pays all theinsurance and any other security expenses. If customer wants to draw stock then hewill deposit amount equal to the stock and bank will issue delivery order in favor ofcustomer.

Term Finance

In the finance, replacement schedule of loan is mentioned along with loan amount,time period and mark up rate. Term finance has minimum time period 7 days to 5year. Mark up rate varies according to nature of offered security and time period but

now a day it exists between 10% to 15 % . Replacement schedule contains monthlyinstallment in which amount of markup and principle is mentioned after deduction ofall taxes etc (Saving account, Faysal Moavin) and also on yearly basis (Faysal Izafa).This type of finance is profitable for the bank because it generates regular income for

bank. It is also profitable for customers for customers because of high interest.

If the customers want to withdraw money than .5% plenty is charged on the principleamount which is remaining in fixed deposit account.

Staff Finance

This facility is provided for the staff of FBL. The purpose is welfare of the employees.SBP specify the credit limit for the staff of bank. The mark up rate is less thancommercial rate. The term & condition of staff finance are same as of term finance.

Personal Finance:

Personal loan is unsecured for bank because no security is pledged in this situation.

Only take 6 security Cheques. Range is from 1 lack to 5 lack .It is only for salaried

and business persons. This department is much sensitive because recovery of loan is

difficult. The target of this department is 1.5 million if they fulfill this target than

employees get salary + bonus. In personal loan two types of loan are included



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Secured loan

Un-secured loan

The range of unsecured loan is from one lack to 5 lack .In this loan nosecurity is pledged so unsecured. Mark-up is also high. Mark up varies

according to situation.

While in secured loan security is necessary and loan limit is above to 5

lacks.

Documents required:

For Salaried Person:

Applicant's CNIC Copy

One photograph Fresh

Two References CNIC Copy

Current Deposit slip

One year bank statement

Two utility bills CIB (Credit Information Burro)

For Business Person:

CNIC Copy

One Photograph Fresh

Two reference CNIC Copy

Two Letter head

Business Proof

One year Bank statement

Two Utility Bills

CIB(Credit Information Burro)



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Non Fund Based Finance

In this finance, no cash is involved. It is only a commitment. It is an obligation of

bank and if the customer declares default then bank is liable to make payment. Thebank charges commission in these finances in respect of markup. This facility isprovided against the cash margin and mortgage of property because bank has risk inthis type of finances.



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Housing Finance DepartmentFaysal Housing Finance gives you so much more than great financing rates - Whetheryou want to build a new home or are in a hurry to move into a ready built house orJust want to renovate your existing home or even transfer your existing expensivemortgage finance balance. Faysal bank offer the following housing finance facility

Buy a Home

Build a House

Home Renovation

Balance Transfer Facility

Features:

Flexible repayment options

Option to partially or fully terminate the facility.

Financing tenor up to 20 years

Fast processing.

Minimum processing charges

Financing available up to 80% of the market value of the property.

Eligibility:

A Pakistani Resident and National holding the New Computerized IdentityCard (NADRA)

Aged between 25 to 60 years if you are a salaried person and of 65 years ifyou are in business

In continuous employment for 3 years

In business with at least 3 years of business or professional experience

Earning a net monthly income of Rs.30, 000/- or more [spouses income canalso be combined with yours].



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In housing finance security which is pledged should never commercial property. If thelimit is less than 4 million than only FBL will involve in financing but if limit increasethan 4 million than Regional office also involve in processing of finance.

The range of financing is from 1 million to 25 million, only one million approval is

taking without hesitation but if limit is more than 1 million than Regional office willround-off the limit.

Debt burden from stat bank is 50% but stat bank also gives permission of 40% debtburden but in this situation 10% deviations will also take.

In housing finance bank always take two values

Net value

For sale value

But if the limit is less than 4 million than only one value taking by bank that is Netvalue but if the limit is more than 4 million than two values will be taking by bank.These valuations are taking by private companies which are made for valuation

purpose. When FBL wants to take valuation than Head office will tell that whichcompany will take value of property.

Following Companies are used for valuation purpose:

ASREM

EPI

ICIL

Haseeb Association

Sama association

Insurance of housing finance is very low, only one Rs. Behind 1000 Rs.

Only Buy a home is unsecured for bank because no property is pledged in thissituation. For example if a customer wants to buy a home and he is a salaried personand have no thing as a security than this type of finance totally based on trust.



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Auto Department:Faysal Car Finance is the most flexible product designed to meet customer needs.

Features:

Car financing for locally manufactured new and used cars and imported cars.

Car Financing up to five years

Down payment only 20% of the car value

Minimum documentation charges.

Fast processing. Option to prematurely terminate the facility.

Eligibility:Now you can swiftly, easily and cost effectively own a car if you are:

A Pakistani National holding the New Computerized Identity Card(NADRA)

Minimum 20 years of age at the time of financing.

A Businessman or Self-Employed with a minimum of one year experiencein the same business and profession.

A Salaried person with at least two years employment history.

Limitations:

Faysal bank not lease cars to judges, lawyers, army, police .

Mostly prefer the salaried persons rather than landlord.

Insurance Company ADAM G and EFU

Insurance 5%

Lease term 3, 4 and 5 years

Internal rate of return 18.5%

Down payment 20% of asset value

Soft ware use Symbol and LimsDebt burden should less than 33%



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FBL gives car on financing and also on leasing .In financing the ownership is of

customer while in leasing the ownership is of bank and after all payments of

installment and markup the ownership is transfer to customer.

Mark-up

FBL charge 18.5% mark up on auto financing, from 18.5% the 10.3% given to SBPand remaining is the profit of FBL. But for contractor employees the mark up rate is16% while for permanent employees the mark up is less than the actual mark up. Nowa days the KAIBR rate is 10.3% while few months before it was 15.49%.It is changedafter 3 months ,6 months etc but for banks it is always less good because in thissituation the profit of bank is high.

Insurance:

Faysal Bank charge 5% insurance from customer, from 5% insurance companies

charge 3.5% while 1.5% is the benefit of Faysal bank. Faysal bank use ADAM G

and EFU Companies for insurance.

Down Payment:

Down payment should at least 20% of the value of asset or car. The down payment

can be 15% but in this situation special approval is necessary from manager and

from regional office.

Process of car financing:

Faysal bank provide auto financing facility to

Business person

Salary person

Agri. person

But bank mostly prefer the business and salaried persons rather than Agri. Persons.

The documents charge different to different customers. Following documents are

necessary for all types of customers



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1st Step:

Documents from customer:

2 photographs

Photocopy of NIC

Photocopy of NIC of two references

Photocopy of utility bills

Bank statement of one year verified by bank official

Business proof / Salary slip

But if the customer is landlord than also required the photocopy of landdocuments.

Application Form:

Application form is also filled by customer, in application form bank write all

detail of car or auto which the customer required. For example color, model, with

tracker or with out tracker etc.

Tracker:

Tracker is used to find out the car that car is at which place. Tracker insurance is

4.5% from Tracker Company but Faysal bank charge 5%, its mean .5% is the

profit of bank.

Bank statement:

It is necessary for customer that to submit bank statement to bank. Bank statement

provides information about the income of customer. The income of customer

should 50000 Rs. Per month or the income should 3 times greater than installment.

It is used to check that either customer in future can pay the principle and markup

or not. If the customer pays late than 100 Rs. Per day is plenty to customer.



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Documents from Bank:

Some documents are also required from bank for the approval of leasing of car. Thedocuments are following

CIB (credit information burro) report:

It is issued by stat bank of Pakistan to cheque the reliability of customer. It is issuedon the request of Faysal bank. In CIB report history of credit is mentioned thatcustomer either pay its previous loans or not. Also mentioned that from which banktakes loan and how much etc.

Data Check:

In it also mentioned the detail of loan history. For example fro which type of loan he

is applied and how much, and if he applied than he take advantage of it or not.

Address Verification:

Address is also verified by bank from ASREM Company; Address of references isalso verified. ASREM take charges of 2000 Rs. Bank personally cannot verify theaddress; it is mentioned by the head office or regional office that from which companytake verification. In every case different companies are used for verification butmostly ASREM is used for this purpose.

NTN (National Tax Certificate):

This document is used to check that either customer pay tax or not, If the customer notpay tax than the bank hesitate to leasing o financing of autos.

Application Profile:

On application form complete information about applicant is mentioned.

2nd Step:



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After completing all documents which is charged from bank and customer, the file isfirstly approved by BCC (Branch Credit Committee). After approval of BCC than filesend to regional office which is in Multan, in starting the regional office was inLahore but now in Multan. After the approval of regional office the file send to Headoffice.

3rd Step:

When file is approved from head office than they disperses to Faysal bank. In Faysalbank the file is gives to credit department who checks the file, if file is complete fromevery aspect than credit department put stamp of approval and loan number is issuedto customer. After issuing loan number the customer can lease the car.

Before leasing the car bank firstly take signature from customer on "Customer

Agreement" in which write all term and conditions are mentioned about usage of auto,For example if customer gives auto to another person without informing the bank than

bank can take back the car and plenty will be 75000 Rs. on customer .After paying theamount customer can get the car. Car financing is secured for bank while unsecuredfor customer.

Prices of Different Cars:


Toyota

Altis Automatic 1.8 PETROL 1,445,000

Altis Manual 1.8 PETROL 1,355,000

Camry 2006 Automatic Transmission 3,099,000

Corolla 2.0D SE 1,235,000

Corolla 2.OD 1,114,000

Corolla 2.OD Saloon 1,405,000

Corolla GLI 1,040,000

Corolla XLI 950,000

Hilux S/C 210,000

Hilux S/C D/Spec 2,700,000


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Agri .Department:Faysal Bank offers specialized products for the agricultural sector. Its brancheslocated in agricultural areas of Pakistan are all equipped to help the local farmersimprove their yield and methods of farming by offering timely and affordable modes

of financing to suit their needs.

Faysal Bank provide two types of Agri. Loan

Developing loan

Production loan

Developing loan:

Developing loan is for long term for the purpose of development of land, for exampleloan for tractors, treasures and machinery use in land for the purpose of development

of land. Developing loan further classified into

Form Loan

Non- Form loan

Form loan is for forms for example tractor and machines use in fields. While Non-form loan is for dairy, poultry form, fishing, and shading and for buying animals.

Production Loan:

Production loan is issued for the inputs of fields. For example for seeds, fertilizers and

labors etc. It also has two types

Form Loan

Non- Form Loan

Form loan is used fro the inputs used in fields for example seeds, fertilizers, waterexpenses etc .While Non-form loan is used for the feed of animals for example Oilcakes ,green food etc

Mark-up

Mark-up is 18.5%, 14.5% is charged by KIBER and remaining 4% is charged by FBL.The 4% markup can be changed by FBL according to its requirements but KIBERmarkup remains same for all banks.



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Security:

As a security bank accept the land, gold, heavy and valuable machinery and tractor etc

Down payment:

The down payment of tube well is 10% For Dairy and Poultry form is 20%

For seeds, fertilizers etc is no down payment

Documents required from customer:

Agri. Base book

In this book all detail of land is mentioned and also all detail of cultivated area.

Mutation

In it mentioned that land is either buy by customer or it is transfered from forefathers

Jama Bandi

In this document there is mentioned the area of actual land

Quotation

It is in that situation when loan is for tractors etc. In it customer write that from whichCompany he want to purchase tractor and which model etc.

Feasibility Report

If the customer want to open a peltry form than in it mentioned all detail of expanses.

Title Deed

In title deed ownership is mentioned that who is the owner of this land.

After completing all these documents the file is send to Customer Service Officer who

verifies the NIC from NADRA. Than the account of customer is opened.



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Documents Charged from Bank:

Credit proposal

In credit proposal three things are consider by bank

Recommendations from bank Processing from higher officer

Approval

In recommendations from bank, the bank mentioned all details of proposal that eithercustomer is applied first time for loan or not.

Repayment Schedule:

Production loan is for short term and the customer pay after one year, while

development loan is from 1 year to 5 year. Markup is paid after six months.

Former Credit assessment Report:

In credit assessment report bank check the debt burden that either customer can itsprinciple and markup or not. And also mentioned the personal information forexample complete information about land of customer. Information about crops thatwhich crops are growing, information about irrigation system and total worth of assetis also find

Total Worth = Total asset Total Liabilities

Visit Report:

In visit report ACO (Agri Credit Officer) physically visit the land to check that landphysically exists or not.

Guaranty Report:

In it all data and information of guarantor is mentioned



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CIB (creditinformation burro) report:It is issued by stat bank of Pakistan to cheque the reliability of customer. It is issuedon the request of Faysal bank. In CIB report history of credit is mentioned thatcustomer either pay its previous loans or not. Also mentioned that from which bank

takes loan and how much etc.Facility Letter:

In facility letter all term and conditions are mentioned.

After completing these entire documents the file is send to head office for approval.ACO check the file and if any document is missing than that document is attach andfile again send for approval, if no obligation is from head office than ACO transfer thefile to Cad department where client number and loan number is issued.

After issuing the loan number the customer can withdraw the money from his account.



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Internet Banking

Faysal bank always provides most modern services to its customers. To provideinformation about the structure of bank, its network, about its product & services,about the bank performance, FBL design an innovative website for its inspiringrelationship on Internet.

FBL website address: www.faysalbank.com.pk

All the branches of FBL are connected through Internet. And customer can

mail to any branch about his inquires and problems. FBL will response to customer

problems and inquires through Internet.

Products & Services of Faysal Bank:



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We are a progressive bank striving to offer innovative products, easy accessibility,quality service & convenience to our customers. We offer customized financingsolutions with flexible criteria and convenient loan tenures. You can avail car, homeand personal loans through our various branches. We also offer a host of Corporate &Investment Banking Services to our clients, which include financial and corporateadvisory services, along with a wide array of tools to help them achieve their goals.

Products Services

Deposit account Pocket Mate Visa Debit Card

Faysal Saving account Transfer of Funds

Rozana Munafa account Safe Deposit Lockers

Basic Banking account Non- stop Banking

Faysal Moavin

Faysal Premium

Faysal Izafa

Mahfooz Sarmaya

FCY Saving Plus

Consumer Loans

Faysal Finance

Car Finance

House Finance



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Products of Faysal Bank:

Current account

Basic Banking Account

Faysal Bank has introduced the Basic Banking Account (BBA) to cater the needs oflow income groups having the following features.

Features:

Account can be opened with Rs. 5000/.

No requirement for maintaining a minimum balance.

Free of charge statement of account for customers once a year. In case morestatements are required than standard charges would be applicable.

Free ATM transactions on Faysal Bank ATM machines. However chargeswould apply on non Faysal Bank ATM machines.

Saving Account:

Faysal Savings is specially designed to cater to your hard earned savings.

Features:

Account can be opened with an initial deposit of Rs. 10,000/.

No restriction on the number of transactions.

Profit is calculated on monthly average balance.

Profit payment on six monthly bases.

Access to account through on-line banking at all Faysal Bank branches acrossPakistan.

Faysal Moavin Saving Account:

Faysal Moavin is a Savings account made for genuine individual savers like you.Faysal Moavin offers the perfect combination of savings account matched with theflexibility of a current account.



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Features:

No minimum balance requirement.

No restriction on the number of transactions. Profit is calculated on monthly average balance.

Profit payment on monthly basis.

Access to account through on-line banking at all Faysal Bank branches acrossthe country.

Easy access through cheque book an ATM/Debit card. The ATM/Debit cardcan be used at over 2000 ATMs in the country.

Faysal Premium:

Faysal Premium is a savings account specially designed for high value deposits withattractive profit rates having the following features.

Features:

Account can be opened with an initial deposit of Rs. 5 million




Faysal Sahulat:

Faysal Sahulat is a transactional account specially designed for individuals or businesscustomers who want instant access to their funds with no restrictions on the number of

transaction.

Features:

Account can be opened with an initial deposit of Rs. 5,000.

Unlimited transaction facilities.

On maintaining an average balance of Rs. 300,000 following additionalfacilities are provided.

Unlimited cash deposit facility

One small locker and one ATM free.



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365 Pay orders, 365 Demand Drafts, 365 cheque leaves per year free.


Rozana Munafa Plus:

To provide the best possible returns for individual, corporate and business customers,the Rozana Munafa plus Account offers you the opportunity to earn profit every dayand get your profit every month.Features:

Account can be opened with an initial deposit of Rs. 100,000/ forindividuals and Rs. 500,000/ for corporate customers.




Faysal Mahfooz Sarmaya:Faysal Bank endeavors to build and strengthen customer relationships by providinginnovative banking products and services. To provide convenience and value tocustomers with foreign currency related needs, Faysal Banks Mahfooz Sarmayaforeign currency account offers attractive features:

Features:

Account can be opened in three major international currencies: US Dollars,Pound Sterling and Euro.

Minimum balance for opening Mahfooz Sarmaya Foreign Currency Account is1000 units of the currency in which the account is opened.

Account can be opened in any of the following types:

o Savings Account

o Term Deposit Account

Current Account

With Mahfooz Sarmaya Account, you automatically qualify for special rates for

car and home financing.



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FCY Saving Plus:

FCY Saving Plus is a new foreign currency savings account with attractive profit rateswhere customers get their profit on a monthly basis.

Features:

Account can be opened in US Dollars, Pound Sterling and Euro currency.

Minimum balance for opening FCY Saving Plus is 500 units of the currency.


Profit is disbursed on monthly basis.

Term Deposit:

Faysal Izafa:

Every customers financial needs are different. As a result, the Faysal Izafa TermDeposit is designed to provide individuals and corporate customers an opportunity togrow their money securely and earn attractive profits.

Features:

Account can be opened with an investment as low as Rs. 25,000/.

Annual and monthly option available.

Financing facility of up to 90% of invested amount.

No annual fee for the ATM/ Debit card for the entire tenure.

First cheque book on investment of Rs. 300,000/ or more.



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Services of Faysal Bank Ltd:

Combining the wide acceptability of a credit card and the thoughtful prudence of anATM card, Faysal Bank PocketMate is the most convenient way to carry cash. Nomore fear of overspending. No more searching for the nearest ATM. PocketMate VisaDebit Card provides you with the freedom of world wide acceptability at over 27million merchant outlets as an ATM card operative at all ATMs in Pakistan plus atover 1 Million ATMs worldwide bearing VISA logo.

Debit Card vs. Credit Card:

Better Control on Expenses

PocketMate Visa Debit Card gives customer a much better control over their finances.In credit cards, there is a risk of spending more than the repayment capacity. There areno such issues with PocketMate as the amount is directly debited from the bank

account and there are no chances of overspending. All PocketMate transactions aresubject to authorization, which means whenever you do a transaction the status ofyour account is checked. Thus you eliminate the risk of spending the money you don'thave you yourself control your account.

No monthly installments

Since with PocketMate you are using your own funds there is no risk of over spendingnor any worries to pay monthly bill on time.

No Minimum Income RequirementUnlike Credit Cards, the PocketMate is easy to obtain. There is no preset incomerequirement to enjoy the benefits of this fast, convenient and safe debit card. All youneed to do is open and maintain an account with any of the branches of Faysal Bank.

Product Features

Worldwide Acceptance

Travel the world and enjoy the freedom of using your PocketMate Visa Debit Card. Itgives you access to over 27 million shops and 1 million Visa ATMs all over theworld, giving you the freedom of payment anywhere in the world.



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Countrywide Acceptance

Your PocketMate Visa Debit Card is accepted at over 40,000 merchant establishmentsin Pakistan i.e. restaurants, department stores, grocery stores, petrol pumps, etc.Besides, you can use it conveniently at more than 2,000 ATMs all over Pakistan.

Maximum Security

The PocketMate Visa Debit Card contains additional security features, it can only beused Electronically, which means lesser probability of fraudulent attempts on thecard.

Easy Traveling

Your PocketMate Visa Debit Card saves from carrying cash or writing cheques. It

means customers no longer have to stock up on travelers cheques or cash when theytravel.

24-Hour Customer Service

Our 24-Hours Customer Service is there to help you with your requests. Our well-trained and qualified Customer Service team will assist you in answering your queries,registering and resolving your complaints, reporting a lost or stolen card andactivating your card.

Lost Card Protection

Card is safer than cash! Feel safe even in the event of losing your card!! All you needto do is to call our 24-hour Customer Care, and a new card would be issued to youwithin a week. You are protected from any financial liability arising from any

purchase transaction made on your lost card after it has been reported lost.

How to Apply

Existing Faysal Bank Debit Card holders have to fill a simple application form toobtain PocketMate. Existing account holders not possessing any card presently canalso apply for PocketMate by submitting the application form.

To be a part of PocketMate family, one must have a current or saving account atFaysal Bank.

Delivery of PocketMate

Your PocketMate will be delivered to your branch within 5-7 days of your applicationsubmission.



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Summarized Performance

Faysal Bank

Summarized Balance Sheet of 5 yearsYears 2007 2006 2005 2004 2003

Assets:Cash 6872032 7207998 6696726 5048395 2866278

Balance with other Banks 3708451 2883040 2045887 3564030 648660

Lending to Fin. Institutions 7078102 4608205 10742841 4417378 872132

Investment net of provision 31553108 22525358 23887864 11502805 11218501Loans and advances 87346401 74468644 62035978 51373254 29626223

Other Assets 2204368 1537764 2371825 1473952 1183315

Operating Fixed Assets 2514959 2239392 2882441 1158407 1030352Differed Tax Assets _ _ _ _ 160936

Total Assets 141277421 115470401 110663582 78538221 47606397

Liabilities:

Bills Payable 2406927 4516125 1193309 905637 430862

Borrowings from Fin. Institutions 9995855 14965037 15295730 8478048 6529810

Deposits and Other Accounts 102067422 74413641 74595564 56460329 31332172Sub-ordinated loans 1000000 _ _ _ Liabilities against assets subject tofinancial lease 7827 14664 122549 18434 16404

Deffered tax liability 2691466 1839860 1269113 166442 _

Other Liabilities 6951421 5924440 3527023 2294899 1318437

Total Liabilities 125120918 101673767 96003288 68323789 39627685

Net Assets 16156503 13796634 14660294 10214432 7978712

Share Holders EquityShare Capital 5296445 4237157 3684484 2912635 2647850

Capital Reserve 3567033 3079527 2516211 2259101 2115989

Unappropriated Profit & Reserves 1481668 1815643 1938651 1079492 846016Total Equity of the Bank 10345146 9132327 8139346 6251228 5609855

Surplus on Revaluation of Assets 5811357 4664307 6520948 3963204 2368857

Total Share Holders Equity 16156503 13796634 14660294 10214432 7978712

Total Liabilities And Equity 141277421 115470401 110663562 78971348 47606397



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Faysal Bank

Vertical Analysis of Balance Sheet 2007 2006 2005 2004 2003AssetsCash An Balance With TreasuryBanks 4.86% 6.24% 6.05% 6.39% 6.02%Balance With Other Banks 2.62% 2.49% 1.84% 4.51% 1.36%Lending To Financial Institutions 5.01% 3.99% 9.70% 5.59% 1.83%Investment 22.33% 19.50% 21.58% 14.94% 23.56%

Advances 61.82% 64.49% 56.05% 63.63% 62.23%Operating Fixed Assets 1.78% 1.93% 2.60% 3.00% 2.48%Deferred Tax Assets-Net 0.00% 0.00% 0.00% 0.00% 0.33%Other Assets 1.56% 1.33% 2.14% 1.92% 2.16%Total Assets 100% 100% 100% 100% 100%LiabilitiesBill Payable 1.70% 3.91% 1.07% 1.14% 0.90%Borrowing From FinancialInstitutions 7.07% 12.96% 13.82% 10.73% 13.71%Deposits And Other Accounts 72.11% 64.25% 67.40% 71.49% 65.81%Sub-Ordinate Loans 0.70% 0.00% 0.00% 0.00% 0.00%

Liabilities Against AssetsSubject To Finance Lease 0.00% 0.01% 0.11% 0.02% 0.03%Deferred Tax Liabilities-Net 1.90% 1.59% 1.14% 0.21% 0.00%Other Liabilities 4.92% 5.13% 3.18% 2.90% 2.76%Total Liabilities 88.43% 87.86% 86.75% 86.51% 83.24%Share Capital 3.74% 3.66% 3.32% 3.68% 5.56%Reserves 2.52% 2.66% 2.27% 2.86% 4.44%Inappropriate Profit 1.06% 1.64% 1.75% 1.36% 1.77%Minority Interest 0.05% 0.08% 0.00% 0.00% 0.00%Surplus On Revaluation OfAssets 4.11% 4.03% 5.55% 5.01% 4.97%

Total Liabilities And Equity 100% 100% 100% 100% 100%



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Faysal Bank LtdHorizontal Analysis of Balance sheetYears 2007 2006 2005 2004 2003Assets

Cash An Balance With TreasuryBanks 239.75% 251.47% 233.63% 176.13% 100%Balance With Other Banks 571.71% 444.46% 315.40% 549.44% 100%Lending To FinancialInstitutions 811.58% 528.38%

1231.79% 506.50% 100%

Investment 281.26% 200.78% 212.93% 105.18% 100%Advances 294.82% 251.36% 209.39% 169.62% 100%

Operating Fixed Assets 2

19468051 Internsp Report on Faysal Bank Ltd by Linky City

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Transcript of 19468051 Internsp Report on Faysal Bank Ltd by Linky City