Al faysal bank ltd

Al-Faysal Bank LimitedAl-Faysal Bank Limited

INTRODUCTION TO THE MAJORINTRODUCTION TO THE MAJOR

ISLAMIC MODES OF FINANCINGISLAMIC MODES OF FINANCING

1.1. MORABAHAMORABAHA

This is a mode of sale and purchase of commodities. TheThis is a mode of sale and purchase of commodities. The

agreement is made between the Bank and a Customer, wherebyagreement is made between the Bank and a Customer, whereby

Bank purchases a commodity and sells the same to Customer on aBank purchases a commodity and sells the same to Customer on a

deferred payment basis. The essential features of the Morabahadeferred payment basis. The essential features of the Morabaha

are:are:

1.1. Existence of a tangible commodity/asset of which physicalExistence of a tangible commodity/asset of which physical

possession can be taken before use or consumption. possession can be taken before use or consumption.

2.2. Such commodity or asset has to be acquired from third partySuch commodity or asset has to be acquired from third party

(commodity/asset already in the possession of the Customer,(commodity/asset already in the possession of the Customer,

cannot form basis of the agreement). cannot form basis of the agreement).

3.3. Bank sells the commodity/asset to the Customer. Bank sells the commodity/asset to the Customer.

Business Institution Business Institution

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LOCAL PURCHASE MORABAHA (LPO)LOCAL PURCHASE MORABAHA (LPO)

Bank and the client sign a Morabaha Agreement. ClientBank and the client sign a Morabaha Agreement. Client

submits a request for purchase of commodity/asset by specifyingsubmits a request for purchase of commodity/asset by specifying

quality, quantity and price. Bank appoints an agent under anquality, quantity and price. Bank appoints an agent under an

Agency Agreement (who could be the client) to purchase theAgency Agreement (who could be the client) to purchase the

asset/commodity on behalf of the bank. The Agent purchases theasset/commodity on behalf of the bank. The Agent purchases the

commodity under a Purchase Order from third party aftercommodity under a Purchase Order from third party after

obtaining disbursement from the bank through Receipt and submitsobtaining disbursement from the bank through Receipt and submits

a Declaration to this effect. Bank sells the commodity/asset to thea Declaration to this effect. Bank sells the commodity/asset to the

Client on a cost plus profit basis and the parties agree on aClient on a cost plus profit basis and the parties agree on a

Purchase Price and Due date. Purchase Price and Due date.

MORABAHA IMPORTS (PAD)MORABAHA IMPORTS (PAD)

Bank and Client sign a Morabaha Agreement. In terms of theBank and Client sign a Morabaha Agreement. In terms of the

Morabaha Agreement, the Bank appoints the Client as its AgentMorabaha Agreement, the Bank appoints the Client as its Agent

through an Agency Agreement to import commodities from time tothrough an Agency Agreement to import commodities from time to

time. Client submits an application to establish letter of credit andtime. Client submits an application to establish letter of credit and

the Bank opens it. Upon negotiation, the Bank creates an advancethe Bank opens it. Upon negotiation, the Bank creates an advance

in the name of the Client, value payment of funds to thein the name of the Client, value payment of funds to the

beneficiary. Upon receipt of documents and arrival of goods, thebeneficiary. Upon receipt of documents and arrival of goods, the

Bank and the Client enter into a Morabaha through a declarationBank and the Client enter into a Morabaha through a declaration

submitted by the client. Such Morabaha can be spotted, wheresubmitted by the client. Such Morabaha can be spotted, where

client pays immediately to retire documents or on a deferredclient pays immediately to retire documents or on a deferred

payment basis, if the client wishes to pay later. In case of deferredpayment basis, if the client wishes to pay later. In case of deferred


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payment, the Client signs a promissory note for the purchase pricepayment, the Client signs a promissory note for the purchase price

agreed and the Bank releases the documents. agreed and the Bank releases the documents.

2.2. IJARAH (LEASING):IJARAH (LEASING):

Clients use Ijarah financing mainly for financing purchase ofClients use Ijarah financing mainly for financing purchase of

plant and machinery. If assets subject to lease are to be freshlyplant and machinery. If assets subject to lease are to be freshly

acquired, Bank may appoint an agent (could be the client) to do soacquired, Bank may appoint an agent (could be the client) to do so

on its behalf. If Client has already acquired the equipment, Bankon its behalf. If Client has already acquired the equipment, Bank

will purchase it from Client and lease it back. The process ofwill purchase it from Client and lease it back. The process of

Ijarah takes place as follows:Ijarah takes place as follows:

Bank and Client sign a Lease Finance Agreement whereby Bank and Client sign a Lease Finance Agreement whereby

Client agrees to take on lease from the Bank for specified Client agrees to take on lease from the Bank for specified

assets for an agreed tenor.assets for an agreed tenor.

Bank appoints an Agent for acquisition of assets, if not Bank appoints an Agent for acquisition of assets, if not

already in possession of Client.already in possession of Client.

Bank intimates Client of acquisition of assets and delivers toBank intimates Client of acquisition of assets and delivers to

place specified by Client.place specified by Client.

Term of lease starts from date Client takes possession ofTerm of lease starts from date Client takes possession of

assets, whether constructive or physical.assets, whether constructive or physical.

Client pays a monthly, or quarterly rental to the Bank for theClient pays a monthly, or quarterly rental to the Bank for the

use of the assets and by virtue of the agreement, becomesuse of the assets and by virtue of the agreement, becomes


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owner of asset only after paying a nominal lease end value.owner of asset only after paying a nominal lease end value.

3.3. MUSHARAKAHMUSHARAKAH

Under Islamic jurisprudence, Musharakah means a jointUnder Islamic jurisprudence, Musharakah means a joint

enterprise formed for conducting some business in which allenterprise formed for conducting some business in which all

partners contribute financially and share the profit as per prepartners contribute financially and share the profit as per pre

agreed upon ratios, while the loss is shared according to the ratiosagreed upon ratios, while the loss is shared according to the ratios

of financial contribution of each partner. The Musharakah is anof financial contribution of each partner. The Musharakah is an

ideal alternate to replace interest based lending with far reachingideal alternate to replace interest based lending with far reaching

effects on both production and distribution of capital.effects on both production and distribution of capital.

Profit sharing ratios in a Musharakah depend entirely on theProfit sharing ratios in a Musharakah depend entirely on the

estimated profit the business is able to generate.estimated profit the business is able to generate.

The Musharakah is a relationship established, by the parties,The Musharakah is a relationship established, by the parties,

by mutual contract and therefore all necessary ingredients of aby mutual contract and therefore all necessary ingredients of a

valid contract must be present.valid contract must be present.

The risk of loss inherent in this mode of financing ensuresThe risk of loss inherent in this mode of financing ensures

that the Bank fully satisfies itself as to the profitability andthat the Bank fully satisfies itself as to the profitability and

feasibility of the business venture as well as to the integrity of itsfeasibility of the business venture as well as to the integrity of its

Musharakah partners.Musharakah partners.


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4.4. MODARABAMODARABA

This is a kind of partnership where one partner gives moneyThis is a kind of partnership where one partner gives money

to another for investing it in a commercial enterprise. Theto another for investing it in a commercial enterprise. The

investment comes from the first partner who is called "Rabb-ul-investment comes from the first partner who is called "Rabb-ul-

maal" while the management and work is an exclusivemaal" while the management and work is an exclusive

responsibility of the other, who is called "Modarib" and the profitsresponsibility of the other, who is called "Modarib" and the profits

generated are shared in a predetermined ratio.generated are shared in a predetermined ratio.

There are two types of Modaraba namely:There are two types of Modaraba namely:

Al Modaraba Al Moqayyadah:Al Modaraba Al Moqayyadah: Rabb-ul-maal may specify a Rabb-ul-maal may specify a

particular business or a particular place for the Modarib, inparticular business or a particular place for the Modarib, in

each case he shall invest the money in that particular businesseach case he shall invest the money in that particular business

or place. This is called Al Modaraba Al Moqayyadah (restrictedor place. This is called Al Modaraba Al Moqayyadah (restricted

Modaraba).Modaraba).

Al Modaraba Al Mutlaqah:Al Modaraba Al Mutlaqah: If Rabb-ul-maal gives full freedom If Rabb-ul-maal gives full freedom

to Modarib to undertake whatever business he deems fit, this isto Modarib to undertake whatever business he deems fit, this is

called Al Modaraba Al Mutlaqah (unrestricted Modaraba).called Al Modaraba Al Mutlaqah (unrestricted Modaraba).

However, Modarib cannot, without the consent of Rabb-ul-However, Modarib cannot, without the consent of Rabb-ul-

maal, lend money to anyone. Modarib is authorized to domaal, lend money to anyone. Modarib is authorized to do

anything which is normally done in the course of business. Ifanything which is normally done in the course of business. If

they want to have an extraordinary work which is beyond thethey want to have an extraordinary work which is beyond the

normal routine of the traders, it cannot be done without expressnormal routine of the traders, it cannot be done without express


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permission from the Rabb-ul-maal. Modarib is also notpermission from the Rabb-ul-maal. Modarib is also not

authorized toauthorized to

keep another Modarib or a partnerkeep another Modarib or a partner

Mix his own investment in that particular Modaraba without Mix his own investment in that particular Modaraba without

the consent of Rabb-ul-maal. the consent of Rabb-ul-maal.


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HISTORY OF THE GROUP HISTORY OF THE GROUP

(ISLAMIC BANKERS)(ISLAMIC BANKERS)

Faysal Bank Limited (FBL) is a subsidiary of Shamil Bank ofFaysal Bank Limited (FBL) is a subsidiary of Shamil Bank of

Bahrain E.C. (Islamic Bankers) which is controlled and managedBahrain E.C. (Islamic Bankers) which is controlled and managed

by the Dar Al-Maal Al-Islami Trust (DMI). by the Dar Al-Maal Al-Islami Trust (DMI).

DMI is headed by H.R.H Prince Mohamed Al Faisal Al SaudDMI is headed by H.R.H Prince Mohamed Al Faisal Al Saud

with its Head Office in Geneva, Switzerland. It has been one ofwith its Head Office in Geneva, Switzerland. It has been one of

the leading contributors to the development of Islamic-banking inthe leading contributors to the development of Islamic-banking in

the world, particularly with regard to promoting new modes ofthe world, particularly with regard to promoting new modes of

investments compatible with Islamic Shariah, through its networkinvestments compatible with Islamic Shariah, through its network

of over 20 financial and business companies, represented in 15of over 20 financial and business companies, represented in 15

countries around the world.countries around the world.

Shamil Bank of Bahrain E.C. (Islamic Bankers) came intoShamil Bank of Bahrain E.C. (Islamic Bankers) came into

existence when the board of DMI decided to merge Faysal Islamicexistence when the board of DMI decided to merge Faysal Islamic

Bank of Bahrain and Islamic Investment Company of the Gulf.Bank of Bahrain and Islamic Investment Company of the Gulf.

Based on the pioneering experience of Islamic-banking of both, aBased on the pioneering experience of Islamic-banking of both, a

new entity, Shamil Bank of Bahrain E.C was formed. Thenew entity, Shamil Bank of Bahrain E.C was formed. The

amalgamation process was completed in June 2000, with anamalgamation process was completed in June 2000, with an

objective to further enhance and consolidate the financial base andobjective to further enhance and consolidate the financial base and

to optimize the operational economies. This brought forth ato optimize the operational economies. This brought forth a

dynamic institution for integrating Islamic-banking principles anddynamic institution for integrating Islamic-banking principles and

systems on a global basis. Shamil Bank continues to thrive with itssystems on a global basis. Shamil Bank continues to thrive with its


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Islamic-principles and a strong asset base of US$ 2.9 billion andIslamic-principles and a strong asset base of US$ 2.9 billion and

equity of more than US$ 230 million. The Bank is fully committedequity of more than US$ 230 million. The Bank is fully committed

to the region and continues to hold a 60 percent controllingto the region and continues to hold a 60 percent controlling

interest in Faysal Bank Limited, Pakistan.interest in Faysal Bank Limited, Pakistan.

INTRODUCTION TO FBLINTRODUCTION TO FBL

Faysal Bank Limited (FBL) was incorporated on October 3,Faysal Bank Limited (FBL) was incorporated on October 3,

1994 in Pakistan as a public limited company. The shares of the1994 in Pakistan as a public limited company. The shares of the

Bank are quoted on Karachi and Lahore Stock Exchanges. FBLBank are quoted on Karachi and Lahore Stock Exchanges. FBL

commenced business operations effective January 1, 1995, takingcommenced business operations effective January 1, 1995, taking

over six branches of Faysal Islamic Bank of Bahrain E.C. (FIBB),over six branches of Faysal Islamic Bank of Bahrain E.C. (FIBB),

which had established its presence in Pakistan since 1987. Sixtywhich had established its presence in Pakistan since 1987. Sixty

percent of its share capital is held by Shamil Bank of Bahrain E.C.percent of its share capital is held by Shamil Bank of Bahrain E.C.

(Islamic Bankers), and the(Islamic Bankers), and the remaining forty percent by the localremaining forty percent by the local

public.public.

FBL was the first Bank to start Islamic-banking in PakistanFBL was the first Bank to start Islamic-banking in Pakistan

under the name of FIBB. Its strict compliance to Shariah gives aunder the name of FIBB. Its strict compliance to Shariah gives a

distinctive edge over other conventional Financial Institutions.distinctive edge over other conventional Financial Institutions.

The Bank is governed by strict Islamic-banking rules and is notThe Bank is governed by strict Islamic-banking rules and is not

allowed to invest in any government / institutional securities orallowed to invest in any government / institutional securities or

financial investment schemes that are interest based.financial investment schemes that are interest based.

Since 1987, FIBB operations have been extended to Pakistan in theSince 1987, FIBB operations have been extended to Pakistan in the

form of full commercial operations. FBL, from the time of itsform of full commercial operations. FBL, from the time of its

inception has been acknowledged as the Best Commercial Bank ininception has been acknowledged as the Best Commercial Bank in


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Pakistan for two consecutive years by two reputable internationalPakistan for two consecutive years by two reputable international

publications, i.e. Euro Money and Asia Money.publications, i.e. Euro Money and Asia Money.

BRANCH NETWORKBRANCH NETWORK

Limited (FBL) has eleven branches spread all over theLimited (FBL) has eleven branches spread all over the

country.country.

The details of branches include:The details of branches include:

3 Branches At Karachi3 Branches At Karachi

2 Branches At Lahore 2 Branches At Lahore

1 Branch At Faisalabad 1 Branch At Faisalabad

1 Branch At Islamabad1 Branch At Islamabad

1 Branch At Rawalpindi1 Branch At Rawalpindi

1 Branch At Peshawar1 Branch At Peshawar

1 Branch At Multan1 Branch At Multan

1 Branch At Quetta1 Branch At Quetta

1 Branch At Mirpur (Azad Kashmir)1 Branch At Mirpur (Azad Kashmir)


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All these twelve Branches of Faysal Bank Limited is dividedAll these twelve Branches of Faysal Bank Limited is divided

into three Regions:into three Regions:

North RegionNorth Region South RegionSouth Region Central RegionCentral Region

Islamabad BranchIslamabad Branch 3 Karachi Branch3 Karachi Branch 2 Lahore Branch2 Lahore Branch

Peshawar BranchPeshawar Branch Quetta BranchQuetta Branch Faisalabad BranchFaisalabad Branch

Rawalpindi BranchRawalpindi Branch Multan BranchMultan Branch

Mirpur BranchMirpur Branch

NOTE: NOTE:

THE MULTAN BRANCH WAS ESTABLISHED ON 1THE MULTAN BRANCH WAS ESTABLISHED ON 1 STST

NOVEMBER 2001 WITH ELEVEN STAFF MEMBERS.NOVEMBER 2001 WITH ELEVEN STAFF MEMBERS.


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MISSION STATEMENTMISSION STATEMENT

VISIONVISION

“The introduction of a just and equitable financial system by“The introduction of a just and equitable financial system by

being a world class multi-purpose financial institution, providing abeing a world class multi-purpose financial institution, providing a

range of specialised services, working on Shariah principles.”range of specialised services, working on Shariah principles.”

VALUESVALUES

The mission statement translates into our objectives: The mission statement translates into our objectives:

To comply with the spirit of Islamic Shariah this will governTo comply with the spirit of Islamic Shariah this will govern

our entire business by translating it into modern financialour entire business by translating it into modern financial

products and services. products and services.

To strive for halal profit, prudent growth and pursuit ofTo strive for halal profit, prudent growth and pursuit of

improved efficiency. improved efficiency.

To focus on serving our customers and shareholders by buildingTo focus on serving our customers and shareholders by building

relationships based on trust and mutual benefit. relationships based on trust and mutual benefit.

To inculcate a culture of teamwork within the Bank byTo inculcate a culture of teamwork within the Bank by

introducing staff training and development programmes. introducing staff training and development programmes.


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MANAGEMENT HIERARCHY OF FAYSAL BANKMANAGEMENT HIERARCHY OF FAYSAL BANK


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PresidentPresident

CEO/CGMCEO/CGM

Country General Country General

ManagerManager

CreditCreditDepartmentDepartment

Operations Operations DepartmentDepartment

ConsumerConsumerBankingBanking

Corporate Corporate Banking GroupBanking Group

Country Country Operations Operations

ManagerManager

Head of Head of Consumer Consumer BankingBanking

Country Risk Country Risk ManagerManager

CorporateCorporateHeadHead


Regional Regional Corporate Corporate

HeadHead

Regional Regional Operations Operations

ManagerManager

Regional Head of Regional Head of Consumer Consumer BankingBanking

Branch Branch Relationship Relationship

OfficerOfficer

Branch Branch Operations Operations

ManagerManager

Branch Sales & Branch Sales & Service Service

ManagerManager

Credit OfficersCredit Officers

Branch Branch ManagerManager

OfficersOfficers

Personal Personal Services Services OfficersOfficers



BOARD OF DIRECTORSBOARD OF DIRECTORS

H.R.H Prince Mohamed H.R.H Prince Mohamed

Al Faisal Al SaudAl Faisal Al Saud ChairmanChairman

Mr. Farook BengaliMr. Farook Bengali President & CEOPresident & CEO

Mr. Khalid A. JanahiMr. Khalid A. Janahi DirectorDirector

Mr. Mahmood A. FaruquiMr. Mahmood A. Faruqui DirectorDirector

Mr. Nasir Ali Shah BukhariMr. Nasir Ali Shah Bukhari DirectorDirector

Mr. Ziad H. RawasdehMr. Ziad H. Rawasdeh DirectorDirector

Dr. Said Sa'ad Dr. Said Sa'ad DirectorDirector

Mr. Tariq Iqbal KhanMr. Tariq Iqbal Khan Director (NIT Nominee)Director (NIT Nominee)

EXECUTIVE COMMITTEE:EXECUTIVE COMMITTEE:

Mr. Khalid A. JanahiMr. Khalid A. Janahi

Mr. Hasan S. Al-JabariMr. Hasan S. Al-Jabari

ChairmanChairman

MemberMember

Mr. Farook BengaliMr. Farook Bengali MemberMember


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MANAGEMENT HIERARCHYMANAGEMENT HIERARCHY

The highest authority in the management of Faysal BankThe highest authority in the management of Faysal Bank

Limited is the President. He is responsible for the overallLimited is the President. He is responsible for the overall

functions of the bank. He sits at the Karachi Head Office of thefunctions of the bank. He sits at the Karachi Head Office of the

Faysal Bank Limited and controls the functions of the Bank.Faysal Bank Limited and controls the functions of the Bank.

Next authority after the president is CEO (Chief ExecutiveNext authority after the president is CEO (Chief Executive

Officer) or CGM (Country General Manager). He is responsibleOfficer) or CGM (Country General Manager). He is responsible

for the overall functions of the Bank. He assists the president infor the overall functions of the Bank. He assists the president in

his work.his work.

Then the functioning of the bank is divided into three mainThen the functioning of the bank is divided into three main

categories.categories.

Credit DepartmentCredit Department

Operations DepartmentOperations Department

Consumer Banking.Consumer Banking.

CREDIT DEPARTMENTCREDIT DEPARTMENT

The main purpose of this department is to extend loans to itsThe main purpose of this department is to extend loans to its

clients for the productive purpose. Credit Department is alsoclients for the productive purpose. Credit Department is also

called Corporate Banking Group.called Corporate Banking Group.


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OPERATIONS DEPARTMENT OPERATIONS DEPARTMENT

Operations department of the Faysal Bank Limited isOperations department of the Faysal Bank Limited is

responsible for the overall operations of the bank, Customerresponsible for the overall operations of the bank, Customer

Services Department, Remittance Department, ClearingServices Department, Remittance Department, Clearing

Department, Accounts Department, etc. all come under it.Department, Accounts Department, etc. all come under it.

CONSUMER BANKINGCONSUMER BANKING

Consumer Banking is the Marketing Department of theConsumer Banking is the Marketing Department of the

Faysal Bank Limited. The Head of Consumer Banking DepartmentFaysal Bank Limited. The Head of Consumer Banking Department

is present at Head Office of Faysal Bank Limited Karachi. Heis present at Head Office of Faysal Bank Limited Karachi. He

prepares the new Deposit Schemes of the Bank and makes theprepares the new Deposit Schemes of the Bank and makes the

marketing strategies of these products. He then communicatesmarketing strategies of these products. He then communicates

these plans to all the branches of the bank. He is being assisted bythese plans to all the branches of the bank. He is being assisted by

Corporate Head and Corporate Head is being assisted by RegionalCorporate Head and Corporate Head is being assisted by Regional

Head of Consumer Banking.Head of Consumer Banking.

At Faysal Bank Limited, consumers are treated very well.At Faysal Bank Limited, consumers are treated very well.

They are of the opinion that customers must be satisfied with theThey are of the opinion that customers must be satisfied with the

services provided by the Bank. All of the Branches try to makeservices provided by the Bank. All of the Branches try to make

sure that customers are satisfied with the services being providedsure that customers are satisfied with the services being provided

by the Bank.by the Bank.


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DEPOSIT SCHEMES AND OTHER FACILITIESDEPOSIT SCHEMES AND OTHER FACILITIES

OFFEREDOFFERED

At FBL "full service" does not simply mean offering a rangeAt FBL "full service" does not simply mean offering a range

of products and services. It also means we provide personalizedof products and services. It also means we provide personalized

service. We believe in dedicating ourselves towards achieving anservice. We believe in dedicating ourselves towards achieving an

outstanding quality in all activities. Therefore, our strengthoutstanding quality in all activities. Therefore, our strength

emanates from the quality of service we provide to our customersemanates from the quality of service we provide to our customers

as well as the competitive products that we offer in Consumeras well as the competitive products that we offer in Consumer

Banking. At FBL, we are aggressively expanding by developingBanking. At FBL, we are aggressively expanding by developing

new array of deposit and investment products in line with thenew array of deposit and investment products in line with the

Islamic principles as well as focusing on developing business inIslamic principles as well as focusing on developing business in

Consumer Finance.Consumer Finance.

Faysal Bank endeavors to build and strengthen customerFaysal Bank endeavors to build and strengthen customer

relationship and their loyalty by providing them with innovativerelationship and their loyalty by providing them with innovative

banking products and services.banking products and services.

We realize every customer’s financial needs are different. AsWe realize every customer’s financial needs are different. As

a result, we have developed a broad range of savings and terma result, we have developed a broad range of savings and term

deposit accounts, each offering specific benefits to individuals,deposit accounts, each offering specific benefits to individuals,

businesses and corporate clients.businesses and corporate clients.

Above all, we are always looking for new ways to makeAbove all, we are always looking for new ways to make

banking as straightforward and friendly as possible in conjunctionbanking as straightforward and friendly as possible in conjunction

with Islamic principles.with Islamic principles.


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PRODUCTS PRODUCTS

Pak Rupee Current Account – The Faysal SahulatPak Rupee Current Account – The Faysal Sahulat AccountAccount

Pak Rupee Savings Account – The Faysal Savings AccountPak Rupee Savings Account – The Faysal Savings Account

Pak Rupee Rozana Munafa AccountPak Rupee Rozana Munafa Account

Pak Rupee Rozana Munafa Plus AccountPak Rupee Rozana Munafa Plus Account

Pak Rupee Faysal Izafa AccountPak Rupee Faysal Izafa Account

Pak Rupee Faysal Premium AccountPak Rupee Faysal Premium Account

Other ProductsOther Products

SERVICES SERVICES

Global Transaction ServiceGlobal Transaction Service

Safe Deposit Locker ServiceSafe Deposit Locker Service

Travelers Cheque – Pak Rupee and Foreign CurrencyTravelers Cheque – Pak Rupee and Foreign Currency

Evening Banking ServiceEvening Banking Service

Fast Telebanking ServiceFast Telebanking Service

ATMsATMs


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http://www.faysalbank.com.pk/cfm/body_prod_services.cfm#current%23current

http://www.faysalbank.com.pk/cfm/body_prod_services.cfm#current%23current

http://www.faysalbank.com.pk/cfm/body_prod_services.cfm#auto%23auto

http://www.faysalbank.com.pk/cfm/body_prod_services.cfm#fast%23fast

http://www.faysalbank.com.pk/cfm/body_prod_services.cfm#evening%23evening

http://www.faysalbank.com.pk/cfm/body_prod_services.cfm#travel%23travel

http://www.faysalbank.com.pk/cfm/body_prod_services.cfm#safe%23safe

http://www.faysalbank.com.pk/cfm/body_prod_services.cfm#global%23global

http://www.faysalbank.com.pk/cfm/body_prod_services.cfm#others%23others

http://www.faysalbank.com.pk/cfm/body_prod_services.cfm#%23

http://www.faysalbank.com.pk/cfm/body_prod_services.cfm#izafa%23izafa

http://www.faysalbank.com.pk/cfm/body_prod_services.cfm#munafaplus%23munafaplus

http://www.faysalbank.com.pk/cfm/body_prod_services.cfm#munafa%23munafa

http://www.faysalbank.com.pk/cfm/body_prod_services.cfm#savings%23savings


DEPOSIT SCHEMESDEPOSIT SCHEMES

CONSUMER PRODUCTSCONSUMER PRODUCTS

CURRENT ACCOUNTCURRENT ACCOUNT

We may open a Faysal Sahulat Account with a minimumWe may open a Faysal Sahulat Account with a minimum

balance of Rs.10,000/- only. The account offers unlimitedbalance of Rs.10,000/- only. The account offers unlimited

transaction facilities. We may avail all banking facilities with thetransaction facilities. We may avail all banking facilities with the

current account if we maintain the minimum balance requirement.current account if we maintain the minimum balance requirement.

With a monthly average balance of only Rs.100,000/-* we canWith a monthly average balance of only Rs.100,000/-* we can

enjoy the following valuable banking services absolutely free:enjoy the following valuable banking services absolutely free:

• Countrywide cash withdrawal facility 365 withdrawals per year

- Minimum transactional amount Unlimited

• Countrywide cash deposit facility Unlimited

- Minimum transactional amount Unlimited

• Payorders per year 365

• Cheque leaves per year 365

• Demand Drafts drawn on FBL, local network

365 per year

• Small Locker (where available) 01

• ATM Card (when available) 01

*Subject to change as per Bank's policy*Subject to change as per Bank's policy


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SAVINGS ACCOUNTSAVINGS ACCOUNT

We may open a Faysal Savings Account with only Rs.20, 000/-. ThereWe may open a Faysal Savings Account with only Rs.20, 000/-. There

is no restriction on the number of transactions in this account and we getis no restriction on the number of transactions in this account and we get

our profit every six months. Profit is calculated each day at the day'sour profit every six months. Profit is calculated each day at the day's

closing balance. Profit will be subject to deduction of Withholding Tax atclosing balance. Profit will be subject to deduction of Withholding Tax at

rates levied by the Government of Pakistan and Zakat, where applicable.rates levied by the Government of Pakistan and Zakat, where applicable.

Current expected rate of profit are as follows:Current expected rate of profit are as follows:

Tier Limit Expected rate of profit

UPTO Rs.25,000/- 00.50 %p.a. Rs.25,001/- to Rs.50,000/- 03.00 %p.a. Rs.50,001/- to Rs.100,000/- 04.50 %p.a. OVER Rs.100,000/- 07.00 %p.a.

ROZANA MUNAFA ACCOUNTROZANA MUNAFA ACCOUNT

For Individual / Corporate Customers For Individual / Corporate Customers

To provide specialized solutions for corporations andTo provide specialized solutions for corporations and

individuals, Faysal Bank’s Rozana Munafa offers the perfectindividuals, Faysal Bank’s Rozana Munafa offers the perfect

combination of a savings account matched with the flexibility of acombination of a savings account matched with the flexibility of a

current account. "A saving account that thinks like a currentcurrent account. "A saving account that thinks like a current

account".account".

We can open this account with an average daily balance ofWe can open this account with an average daily balance of

Rs.200, 000/-. their profits are calculated each day at the day’sRs.200, 000/-. their profits are calculated each day at the day’s


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closing balance as long as our monthly average balance remainsclosing balance as long as our monthly average balance remains

above the minimum required balance. Profits will be disbursedabove the minimum required balance. Profits will be disbursed

every six months and will be subject to Withholding Tax at ratesevery six months and will be subject to Withholding Tax at rates

levied by the Government of Pakistan. Zakat will be deductedlevied by the Government of Pakistan. Zakat will be deducted

where applicable. The higher our deposits, the higher the profit.where applicable. The higher our deposits, the higher the profit.

Current expected rate of profit are as follows:Current expected rate of profit are as follows:


UPTO Rs.200,000/- 07.00 %p.a. Rs.200,001/- to Rs.1,000,000/- 07.30 %p.a. Rs.1,000,001/- to Rs.3,000,000/- 07.70 %p.a. Rs.3,000,001/- to Rs.10,000,000/- 07.80 %p.a. Rs.10,000,001/- to Rs.25,000,000/- 07.90 %p.a. Rs.25,000,001/- to Rs.50,000,000/- 08.00 %p.a. Rs.50,000,001/- to Rs.500,000,000/- 08.25 %p.a. Rs.500,000,001/- and ABOVE 08.50 %p.a.

For Investment Banks only: For Investment Banks only:


UPTO Rs.100,000,000/- 06.75 %p.a. Rs.10,000,001/- and ABOVE 07.00 %p.a.


2020


ROZANA MUNAFA PLUS ACCOUNTROZANA MUNAFA PLUS ACCOUNT

For Individual / Corporate CustomersFor Individual / Corporate Customers

To provide the best possible returns for individuals,To provide the best possible returns for individuals,

corporates and personal businesses, Faysal Bank’s Rozana Munafacorporates and personal businesses, Faysal Bank’s Rozana Munafa

Plus, offers us the opportunity to earn profit every day of the year.Plus, offers us the opportunity to earn profit every day of the year.

"Get the advantage of a term deposit with the convenience of a"Get the advantage of a term deposit with the convenience of a

savings account and the flexibility of a current account". savings account and the flexibility of a current account".

We can open this account with an average daily balance ofWe can open this account with an average daily balance of

Rs.500,000/-. To avail a high profit on this account, they offer usRs.500,000/-. To avail a high profit on this account, they offer us

a tiered profit structure. Profit will be calculated daily on thea tiered profit structure. Profit will be calculated daily on the

closing balance at the interim rate of return as long as our monthlyclosing balance at the interim rate of return as long as our monthly

average balance is above the minimum balance required. Ifaverage balance is above the minimum balance required. If

monthly average balance falls below the minimum requirement,monthly average balance falls below the minimum requirement,

then normal PLS savings account rate will apply but each day atthen normal PLS savings account rate will apply but each day at

the day's closing balance. Profits will be disbursed every monththe day's closing balance. Profits will be disbursed every month

and will be subject to Withholding Tax at rates levied by theand will be subject to Withholding Tax at rates levied by the

Government of Pakistan. Zakat will be deducted where applicable.Government of Pakistan. Zakat will be deducted where applicable.

The higher our deposit, the higher the profit. Unlike other savingsThe higher our deposit, the higher the profit. Unlike other savings

accounts, Rozana Munafa Plus does not keep us waiting. In fact,accounts, Rozana Munafa Plus does not keep us waiting. In fact,

profit is disbursed to our account each and every month, giving usprofit is disbursed to our account each and every month, giving us

the advantage of a monthly income certificate (termthe advantage of a monthly income certificate (term

deposit).Current expected rate of profit are as follows:deposit).Current expected rate of profit are as follows:


2121



UPTO Rs.500,000/- 07.00 %p.a. Rs.500,001/- to Rs.1,000,000/- 07.10 %p.a. Rs.1,000,001/- to Rs.3,000,000/- 07.25 %p.a. Rs.3,000,001/- to Rs.10,000,000/- 07.40 %p.a. Rs.10,000,001/- to Rs.25,000,000/- 07.55 %p.a. Rs.25,000,001/- to Rs.50,000,000/- 07.70 %p.a. Rs.50,000,001/- to Rs.100,000,000/- 07.85 %p.a. Rs.100,000,001/- and ABOVE 08.00 %p.a.

FAYSAL IZAFA ACCOUNTFAYSAL IZAFA ACCOUNT

At Faysal Bank, they realize every customer’s financialAt Faysal Bank, they realize every customer’s financial

needs are different. As a result, they have developed Faysal Izafaneeds are different. As a result, they have developed Faysal Izafa

Account, which provides an option of growth or a monthly incomeAccount, which provides an option of growth or a monthly income

plan. plan.

Faysal Izafa Account is a term deposit account for corporateFaysal Izafa Account is a term deposit account for corporate

and individual customers designed to help our money growand individual customers designed to help our money grow

securely and swiftly. An account can be opened with ansecurely and swiftly. An account can be opened with an

investment of Rs.25,000/-. This account gives us the option of oneinvestment of Rs.25,000/-. This account gives us the option of one

month to five years deposits. On six month deposit profit is paidmonth to five years deposits. On six month deposit profit is paid

monthly.monthly.


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Current expected rate of profit is between 07.80% to 10.75%Current expected rate of profit is between 07.80% to 10.75%

p.a.p.a.

Profit on the Izafa Account will be subject to deduction ofProfit on the Izafa Account will be subject to deduction of

Withholding Tax at rates levied by the Government of PakistanWithholding Tax at rates levied by the Government of Pakistan

and Zakat, where applicable.and Zakat, where applicable.

OTHER PRODUCTS:OTHER PRODUCTS:

In addition to the special savings and investment schemes,In addition to the special savings and investment schemes,

we can choose from a host of our regular notice deposit schemeswe can choose from a host of our regular notice deposit schemes

with maturities of 7 and 30 days. Profit will be subject towith maturities of 7 and 30 days. Profit will be subject to

deduction of Withholding Tax at rates levied by the Governmentdeduction of Withholding Tax at rates levied by the Government

of Pakistan. And Zakat, where applicable. Current expected rateof Pakistan. And Zakat, where applicable. Current expected rate

of profit on notice deposits is between 05.00% to 05.50% p.a.of profit on notice deposits is between 05.00% to 05.50% p.a.

SERVICES OFFEREDSERVICES OFFERED

Inter-Branch Transfer of FundsInter-Branch Transfer of Funds

We can both deposit and withdraw cash from any of ourWe can both deposit and withdraw cash from any of our

branches, regardless of which branch in which we have thebranches, regardless of which branch in which we have the

account in. We need only to carry our cheque book.account in. We need only to carry our cheque book.

Safe Deposit Locker FacilitySafe Deposit Locker Facility

All our branches offer lockers for lease, in a variety of sizesAll our branches offer lockers for lease, in a variety of sizes

at very competitive rentals. Locker facility is available to allat very competitive rentals. Locker facility is available to all


2323


customers maintaining minimum balance requirements in theircustomers maintaining minimum balance requirements in their

respective account categories.respective account categories.

Travelers Cheques Travelers Cheques

We may purchase Muslim Commercial Bank (MCB) RupeeWe may purchase Muslim Commercial Bank (MCB) Rupee

Travelers Cheques at any of our branches. Faysal Bank branchesTravelers Cheques at any of our branches. Faysal Bank branches

also issue American Express, US Dollar and Pound Sterlingalso issue American Express, US Dollar and Pound Sterling

Travelers Cheques to provide maximum convenience and ease toTravelers Cheques to provide maximum convenience and ease to

our customers.our customers.

Evening BankingEvening Banking

In addition to the regular morning banking hours, all ourIn addition to the regular morning banking hours, all our

branches are open for business from 3 p.m. to 5 p.m. We maybranches are open for business from 3 p.m. to 5 p.m. We may

deposit cash and cheques, use our locker, open accounts anddeposit cash and cheques, use our locker, open accounts and

conduct a host of other banking transactions during these hours.conduct a host of other banking transactions during these hours.

Fast Telebanking ServiceFast Telebanking Service

When banking with them we need not come to the bank forWhen banking with them we need not come to the bank for

routine work. Faysal Bank offers telebanking facility (currently atroutine work. Faysal Bank offers telebanking facility (currently at

selected branches). We are assigned a unique PIN with which weselected branches). We are assigned a unique PIN with which we

can access information pertaining to our account over thecan access information pertaining to our account over the

telephone. We can also open related accounts, transfer funds intotelephone. We can also open related accounts, transfer funds into


2424


pre-designated accounts, request for statement by instant faxpre-designated accounts, request for statement by instant fax

through a phone call, amongst many other services.through a phone call, amongst many other services.

Automatic Teller MachinesAutomatic Teller Machines

In order to give its customers maximum convenience, FaysalIn order to give its customers maximum convenience, Faysal

Bank has recently tied in with MCB to use their network of overBank has recently tied in with MCB to use their network of over

100 ATMS country-wide. This means that we can be in any100 ATMS country-wide. This means that we can be in any

location where MCB ATM is located and still have access to ourlocation where MCB ATM is located and still have access to our

Faysal Bank account 24 hours every day. All we have to do isFaysal Bank account 24 hours every day. All we have to do is

carry our ATM card with us.carry our ATM card with us.


2525


DEPARTMENTS OF FAYSAL BANKDEPARTMENTS OF FAYSAL BANK

LIMITEDLIMITED

1. CUSTOMER SERVICES DEPARTMENT1. CUSTOMER SERVICES DEPARTMENT

Customer Services Department is one of the importantCustomer Services Department is one of the important

departments in the bank. Faysal Bank Limited also has a fulldepartments in the bank. Faysal Bank Limited also has a full

fledge Customer Service Department. This department performs afledge Customer Service Department. This department performs a

variety of functions. Every customer is first received by thisvariety of functions. Every customer is first received by this

department and is assisted here as well. The functions which aredepartment and is assisted here as well. The functions which are

performed by Customer Services Department include:performed by Customer Services Department include:

Account Opening Account Opening

Account ClosureAccount Closure

Balance ConfirmationBalance Confirmation

Statement of AccountsStatement of Accounts

DD/TT/PO applicationDD/TT/PO application

Stop Payment RequestStop Payment Request

Information about Deposit SchemesInformation about Deposit Schemes

Cheque Book Requests etc.Cheque Book Requests etc.


2626


Remittance DepartmentRemittance Department

A major function of any bank is to transfer the funds fromA major function of any bank is to transfer the funds from

one place to another. Faysal Bank Limited uses the followingone place to another. Faysal Bank Limited uses the following

modes to transfer the funds.modes to transfer the funds.

Demand DraftDemand Draft

Telegraphic TransferTelegraphic Transfer

Payment OrderPayment Order

DEMAND DRAFT (DD)DEMAND DRAFT (DD)

Demand Draft is used to transfer funds from one city toDemand Draft is used to transfer funds from one city to

another. Client who wants to transfer his funds from one city toanother. Client who wants to transfer his funds from one city to

another fills a form requesting the bank to prepare a DD. DDanother fills a form requesting the bank to prepare a DD. DD

applications form contains columns requiring information for theapplications form contains columns requiring information for the

preparations of DD e.g. preparations of DD e.g.

Beneficiary Name Beneficiary Name

Applicant’s NameApplicant’s Name

AddressAddress

Amount to be sent, etc.Amount to be sent, etc.


2727


Bank deducts some charges against DD. These chargesBank deducts some charges against DD. These charges

include:include:

CommissionCommission

a. Upto Rs. 10,000 0.200/- minimum Rs. 20a. Upto Rs. 10,000 0.200/- minimum Rs. 20

b. 10,001 to 100,000 0.150/- minimum Rs. 40b. 10,001 to 100,000 0.150/- minimum Rs. 40

100,001 to 1,000,000 0.0750/- minimum Rs. 15100,001 to 1,000,000 0.0750/- minimum Rs. 15

Over 1,000,000 0.0500/- minimum Rs. 750Over 1,000,000 0.0500/- minimum Rs. 750

Postage = Rs. 35Postage = Rs. 35

Excise = Rs. 2Excise = Rs. 2

Advance Tax = .2%Advance Tax = .2%

If a client is a tax payer then advance tax is exemptedIf a client is a tax payer then advance tax is exempted

provided that he submits the tax exemption certificate. provided that he submits the tax exemption certificate.

TELEGRAPHIC TRANSFERTELEGRAPHIC TRANSFER

Telegraphic Transfer is another mode of transfer of funds. ItTelegraphic Transfer is another mode of transfer of funds. It

is the quickest mode of transfer of funds from one city to another.is the quickest mode of transfer of funds from one city to another.

For TT’s clients have to submit the application on a prescribedFor TT’s clients have to submit the application on a prescribed


2828


form of the bank. Client can deposit money into the bank or canform of the bank. Client can deposit money into the bank or can

request the bank to deduct the amount against the TT along withrequest the bank to deduct the amount against the TT along with

the charges against the issuance of TT from his account. Thethe charges against the issuance of TT from his account. The

changes against the issuance of TT charged by Faysal Bankchanges against the issuance of TT charged by Faysal Bank

include:include:

CommissionCommission

Upto Rs. 10,000 0.200/-Upto Rs. 10,000 0.200/- minimum Rs. 20minimum Rs. 20

10,001 to 100,000 0.150/-10,001 to 100,000 0.150/- minimum Rs. 40minimum Rs. 40

100,001 to 1,000,000 0.0750/-100,001 to 1,000,000 0.0750/- minimum Rs. 150minimum Rs. 150

over 1,000,000 0.0500/- minimum Rs. 750over 1,000,000 0.0500/- minimum Rs. 750

Telex charges = Rs. 50 (flat)Telex charges = Rs. 50 (flat)


If a client is a tax payer then advance tax is exemptedIf a client is a tax payer then advance tax is exempted

provided that he submits the tax exemption certificate duly signedprovided that he submits the tax exemption certificate duly signed

and stamped. After receiving the application for the TT, bankand stamped. After receiving the application for the TT, bank

immediately issues the receipt to the customer and immediatelyimmediately issues the receipt to the customer and immediately

fills the TT issuing form which is duly signed and test number isfills the TT issuing form which is duly signed and test number is

the corresponding bank by fax to whom TT is issued. Thethe corresponding bank by fax to whom TT is issued. The

corresponding bank after proper verification i.e. test agreement,corresponding bank after proper verification i.e. test agreement,


2929


etc., pays the amount to the beneficiary. For the identification ofetc., pays the amount to the beneficiary. For the identification of

proper person, Name, ID number and Bank Account Number isproper person, Name, ID number and Bank Account Number is

used.used.

PAYMENT ORDER (PO)PAYMENT ORDER (PO)

Payment order normally called pay order is anotherPayment order normally called pay order is another

instrument of transferring fund. It is an instrument which is usedinstrument of transferring fund. It is an instrument which is used

to transfer funds within the city. If any party wants to maketo transfer funds within the city. If any party wants to make

payment to another party within the city, it can make paymentpayment to another party within the city, it can make payment

through Pay Order. Bank deducts certain charges against thethrough Pay Order. Bank deducts certain charges against the

issuance of Pay Order. issuance of Pay Order.

Commission = Rs. 50 (flat)Commission = Rs. 50 (flat)

Excise duty = Rs. 2Excise duty = Rs. 2


If a client is a taxpayer then advance tax is exemptedIf a client is a taxpayer then advance tax is exempted

provided exemption certificate is duly signed and stamped. Aprovided exemption certificate is duly signed and stamped. A

client who is willing to get a Pay Order from Faysal Bank Limitedclient who is willing to get a Pay Order from Faysal Bank Limited

will have to fill an application form which contains the followingwill have to fill an application form which contains the following

information:information:

Beneficiary NameBeneficiary Name

Amount of Pay OrderAmount of Pay Order

Applicant’s NameApplicant’s Name

Charges deducted by the bank etc. Charges deducted by the bank etc.


3030


Payment Order is handed over to the client in the typed formPayment Order is handed over to the client in the typed form

and duly signed by the bank.and duly signed by the bank.

2. FOREIGN EXCHANGE DEPARTMENT2. FOREIGN EXCHANGE DEPARTMENT

In this department the dealing is made in foreign currency.In this department the dealing is made in foreign currency.

In Faysal Bank Limited four types of foreign currencyIn Faysal Bank Limited four types of foreign currency

accounts are available.accounts are available.

US DollarUS Dollar

Pound SterlingPound Sterling

Japanese YenJapanese Yen

Dutch MarkDutch Mark

FUNCTIONS OF FOREIGN EXCHANGE FUNCTIONS OF FOREIGN EXCHANGE

DEPARTMENTDEPARTMENT

This department performs the following functions.This department performs the following functions.

Account Opening Account Opening

Account ClosingAccount Closing

FC IN/Outward RemittancesFC IN/Outward Remittances


3131


Issuance of Travellers ChequesIssuance of Travellers Cheques

3. CASH DEALING DEPARTMENT3. CASH DEALING DEPARTMENT

Cash dealing department of Faysal Bank Limited is given theCash dealing department of Faysal Bank Limited is given the

full responsibility of handling all receipts and disbursement offull responsibility of handling all receipts and disbursement of

cash, as a result of transaction in both local and foreigncash, as a result of transaction in both local and foreign

currencies. It is also responsible for the book – keeping of thesecurrencies. It is also responsible for the book – keeping of these

transactions and the safe custody of cash. transactions and the safe custody of cash.

The following are the major functions of the Cash DealingThe following are the major functions of the Cash Dealing

Department.Department.

Cash ReceiptsCash Receipts

Encashment of Cheques.Encashment of Cheques.

Clearing DepartmentClearing Department

Clearing is a system in which banks exchanges cheques andClearing is a system in which banks exchanges cheques and

other negotiable instruments drawn on each other. A clearingother negotiable instruments drawn on each other. A clearing

house facility is provided by the State Bank of Pakistan forhouse facility is provided by the State Bank of Pakistan for

offsetting of cross obligations between the different banks.offsetting of cross obligations between the different banks.

The major function of clearing department is to receive theThe major function of clearing department is to receive the

cheques which are drawn on some other bank. The customer cancheques which are drawn on some other bank. The customer can

get the money in his account at Faysal Bank Limited from theget the money in his account at Faysal Bank Limited from the


3232


cheques drawn on another bank. The bank accepts these chequescheques drawn on another bank. The bank accepts these cheques

and collects the amount from the bank on which cheques are drawnand collects the amount from the bank on which cheques are drawn

through clearing house. Bank charges some commission for thisthrough clearing house. Bank charges some commission for this

function.function.

The representative of all banks in Pakistan attend the StateThe representative of all banks in Pakistan attend the State

Bank session which is performing the duties of clearing house onBank session which is performing the duties of clearing house on

each business day at some fixed time. They deliver cheques thateach business day at some fixed time. They deliver cheques that

their bank may have negotiated by other banks. The responsibilitytheir bank may have negotiated by other banks. The responsibility

of smooth operation of the clearing function lies with the Stateof smooth operation of the clearing function lies with the State

Bank of Pakistan.Bank of Pakistan.

When there are many banks in the country, each will receiveWhen there are many banks in the country, each will receive

a number of cheques drawn on each other and deposited fora number of cheques drawn on each other and deposited for

collection. A clearing house is a place where these cheques arecollection. A clearing house is a place where these cheques are

brought and mutual claims of each bank on each other are offsetbrought and mutual claims of each bank on each other are offset

and a settlement is made by the payment of a difference.and a settlement is made by the payment of a difference.

4. CREDIT OPERATIONS DEPARTMENT 4. CREDIT OPERATIONS DEPARTMENT

In this department of Faysal Bank Limited, the loans areIn this department of Faysal Bank Limited, the loans are

advanced by the bank to its customers. advanced by the bank to its customers.

Loans are given in lump sum amount to the customers toLoans are given in lump sum amount to the customers to

meet the capital requirements of customers. When customers wantmeet the capital requirements of customers. When customers want

loan to finance a large project, bank asks them to provideloan to finance a large project, bank asks them to provide


3333


feasibility report of that project in order to ensure safe return offeasibility report of that project in order to ensure safe return of

loan.loan.

Faysal Bank Limited extends loan for different maturityFaysal Bank Limited extends loan for different maturity

period. There are short term, intermediate term, and long termperiod. There are short term, intermediate term, and long term

loans offered to its customers. loans offered to its customers.

Maximum period of loans given to client is 180 days. ForMaximum period of loans given to client is 180 days. For

extending loans there is an agreement signed between the bank andextending loans there is an agreement signed between the bank and

the client in which purpose of loan, amount of loan, rate of profitthe client in which purpose of loan, amount of loan, rate of profit

being shared by the bank and the client, etc. are agreed. being shared by the bank and the client, etc. are agreed.

Difference between Faysal Bank Limited and otherDifference between Faysal Bank Limited and other

commercial banks is that Faysal Bank Limited believes on Islamiccommercial banks is that Faysal Bank Limited believes on Islamic

banking. In Islam interest is void therefore Faysal Bank Limitedbanking. In Islam interest is void therefore Faysal Bank Limited

believes on Islamic values. Faysal Bank Limited does not chargebelieves on Islamic values. Faysal Bank Limited does not charge

interest on loans. It makes an agreement with the client andinterest on loans. It makes an agreement with the client and

charges its share of profit.charges its share of profit.

A current account is opened for the client when his/her loanA current account is opened for the client when his/her loan

is sanctioned. If the client is unable to submit profit to the bankis sanctioned. If the client is unable to submit profit to the bank

then there is no compounding charged from him and histhen there is no compounding charged from him and his

outstanding profit remains there without any charge. outstanding profit remains there without any charge.


3434


BASIC REQUIREMENTS FOR EXTENDINGBASIC REQUIREMENTS FOR EXTENDING

LOANSLOANS

In Faysal Bank Limited, the basic requirement for theIn Faysal Bank Limited, the basic requirement for the

extension of loan is that the person who wants to get credit fromextension of loan is that the person who wants to get credit from

Faysal Bank Limited must be an account holder of the bank. It isFaysal Bank Limited must be an account holder of the bank. It is

not required that the customer should be an account holder of thatnot required that the customer should be an account holder of that

particular branch in which credit application is submitted. If aparticular branch in which credit application is submitted. If a

customer is an account holder of any other branch then his creditcustomer is an account holder of any other branch then his credit

worthiness can be checked from that particular branch. worthiness can be checked from that particular branch.

TYPES OF LOAN OFFERED BY FAYSAL BANK TYPES OF LOAN OFFERED BY FAYSAL BANK

LTDLTD

Faysal Bank Limited offers different categories of loans toFaysal Bank Limited offers different categories of loans to

its clients. its clients.

Loan against foreign currency.Loan against foreign currency.

Loan against property.Loan against property.

Loan against shares.Loan against shares.

Loan Against Foreign CurrencyLoan Against Foreign Currency


3535


Faysal Bank Limited extends loan against the security ofFaysal Bank Limited extends loan against the security of

foreign currency. The profit margin charged by Faysal Bankforeign currency. The profit margin charged by Faysal Bank

Limited against the foreign currency loan is 12% to 14%.Limited against the foreign currency loan is 12% to 14%.

The maximum limit for the extension of loans is 75% andThe maximum limit for the extension of loans is 75% and

25% is margin retained by the bank e.g. if the client has $10,00025% is margin retained by the bank e.g. if the client has $10,000

in his account then he can get maximum of $7,500 as a loanin his account then he can get maximum of $7,500 as a loan

amount. Following is done against:amount. Following is done against:

Foreign currency account mainly in dollarsForeign currency account mainly in dollars

Fixed deposit receipt in dollars.Fixed deposit receipt in dollars.

LOAN AGAINST PROPERTYLOAN AGAINST PROPERTY

A customer of Faysal Bank Limited can get loan against theA customer of Faysal Bank Limited can get loan against the

collateral of property. The profit charged by the bank against thecollateral of property. The profit charged by the bank against the

property ranges from 14% to 16%. property ranges from 14% to 16%.

The rate of profit depends upon the value of property. If theThe rate of profit depends upon the value of property. If the

property is located in good place and documents of the propertyproperty is located in good place and documents of the property

are complete then bank will charge a profit rate of 14%.are complete then bank will charge a profit rate of 14%.

LOAN AGAINST SHARESLOAN AGAINST SHARES

Faysal Bank Limited also extends loan against the security ofFaysal Bank Limited also extends loan against the security of

shares. But now a days due to the economic instability the loansshares. But now a days due to the economic instability the loans


3636


against the security of shares is not given. The bank chargesagainst the security of shares is not given. The bank charges

minimum commission from its valued clients. minimum commission from its valued clients.


3737


COMPETITORS OF FAYSAL BANK LIMITEDCOMPETITORS OF FAYSAL BANK LIMITED

Mainly all the banks in the Private Sector are the competitorsMainly all the banks in the Private Sector are the competitors

of Faysal Bank Limited. Faysal Bank Limited has a competitiveof Faysal Bank Limited. Faysal Bank Limited has a competitive

edge over other commercial banks. This competitive edge is thatedge over other commercial banks. This competitive edge is that

Faysal Bank Limited is the only bank in Pakistan who is trulyFaysal Bank Limited is the only bank in Pakistan who is truly

adopting the concept of Islamic Banking.Other commercial bankadopting the concept of Islamic Banking.Other commercial bank

also claiming that they are doing the Islamic banking but in actualalso claiming that they are doing the Islamic banking but in actual

sense, Faysal Bank Limited is the only bank which is followingsense, Faysal Bank Limited is the only bank which is following

the real concept of Islamic Banking. the real concept of Islamic Banking.

Faysal Bank Limited invests its funds in only Islamic modesFaysal Bank Limited invests its funds in only Islamic modes

of finance e.g. Musharaka business, Modaraba business, Ijara, etc.of finance e.g. Musharaka business, Modaraba business, Ijara, etc.

Due to this factor, many people invest their money in theDue to this factor, many people invest their money in the

Faysal Bank Limited and bank’s deposits are increasing year byFaysal Bank Limited and bank’s deposits are increasing year by

year.year.


3838


SWOT ANALYSIS SWOT ANALYSIS

After viewing Faysal Bank Limited the strengths,After viewing Faysal Bank Limited the strengths,

weaknesses, opportunities and threats which we have identified areweaknesses, opportunities and threats which we have identified are

as follows.as follows.

STRENGTHS STRENGTHS

ComputerizationComputerization

The main strength of Faysal Bank Limited is that all of itsThe main strength of Faysal Bank Limited is that all of its

branches are fully computerized and they have latest software’sbranches are fully computerized and they have latest software’s

available to keep the records of their customer’s accounts andavailable to keep the records of their customer’s accounts and

other important information. The advantages of computerizationother important information. The advantages of computerization

are:are:

That it reduces manual work.That it reduces manual work.

It provides good customer services.It provides good customer services.

StaffStaff

The second strength of Faysal Bank Limited is that it hasThe second strength of Faysal Bank Limited is that it has

staff which is well qualified and capable of performing the taskstaff which is well qualified and capable of performing the task

which is assigned to them.which is assigned to them.


3939


Fast ServiceFast Service

The Faysal Bank Limited is one of the leading banks in theThe Faysal Bank Limited is one of the leading banks in the

private sector. The act which makes them capable to achieve thisprivate sector. The act which makes them capable to achieve this

position is the quality and speed of services which they provide toposition is the quality and speed of services which they provide to

their customers. their customers.

Employee ServiceEmployee Service

The Faysal Bank Limited is the one of few banks in theThe Faysal Bank Limited is the one of few banks in the

private sector which provide the employees written policy whichprivate sector which provide the employees written policy which

helps them to know the opportunities present ahead. The rules andhelps them to know the opportunities present ahead. The rules and

regulations of the banks are briefly described in the policy manualregulations of the banks are briefly described in the policy manual

and it is a sort of a guidance for employees to know what is rightand it is a sort of a guidance for employees to know what is right

and what is wrong. and what is wrong.

WEAKNESSESWEAKNESSES

Small NetworkSmall Network

The Weakness Of Faysal Bank Limited is that it has smallThe Weakness Of Faysal Bank Limited is that it has small

network of branches all over Pakistan. It has only 12 branches allnetwork of branches all over Pakistan. It has only 12 branches all

over the country and if we compare this proportion with any Govt.over the country and if we compare this proportion with any Govt.

bank than this proportion is very small. bank than this proportion is very small.


4040


Disbelief in AdvertisingDisbelief in Advertising

The other weakness of Faysal Bank Limited is its disbelief inThe other weakness of Faysal Bank Limited is its disbelief in

advertising. We can hardly find any advertisement of the bank inadvertising. We can hardly find any advertisement of the bank in

print media or in electronic media. So management shouldprint media or in electronic media. So management should

consider this and should realize the importance of advertising.consider this and should realize the importance of advertising.

Only then they would be able to attract more customers and theOnly then they would be able to attract more customers and the

market. market.

OPPORTUNITIESOPPORTUNITIES

Govt. PoliciesGovt. Policies

The economic and industrial reforms brought into country byThe economic and industrial reforms brought into country by

the present Military Govt. seems promising. This has not onlythe present Military Govt. seems promising. This has not only

increased the confidence of people within the country but alsoincreased the confidence of people within the country but also

people outside the country are now more interested to have fundspeople outside the country are now more interested to have funds

invested in Pakistan. So now this is the time to avail thisinvested in Pakistan. So now this is the time to avail this

opportunity and attract those investors to come in Pakistan andopportunity and attract those investors to come in Pakistan and

invest funds. This is because when someone comes in the countryinvest funds. This is because when someone comes in the country

and deposit funds in the banks then the balances of the deposit inand deposit funds in the banks then the balances of the deposit in

the bank increases and the banks invest those funds to earn returnsthe bank increases and the banks invest those funds to earn returns

and in that case the bank flourishes.and in that case the bank flourishes.


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THREATSTHREATS

Greater CompetitionGreater Competition

The major threat for Faysal Bank Limited is the intensifiedThe major threat for Faysal Bank Limited is the intensified

competition among the private banks in the country. There arecompetition among the private banks in the country. There are

many private banks now a days operating in the country and everymany private banks now a days operating in the country and every

bank is trying to improve its functioning and try to give morebank is trying to improve its functioning and try to give more

facilities to customers because in return they will get morefacilities to customers because in return they will get more

deposits from the clients. So if Faysal Bank Limited want to havedeposits from the clients. So if Faysal Bank Limited want to have

an edge from its competitors than it has to improve its functioningan edge from its competitors than it has to improve its functioning

and try to give more facilities and services to its customers. and try to give more facilities and services to its customers.

Impact of PrivatizationImpact of Privatization

Now Days the Govt. is in an attempt to privatize the nationalNow Days the Govt. is in an attempt to privatize the national

banks so that the banks improve their functioning and customersbanks so that the banks improve their functioning and customers

have better service options. Like recently, MCB and Allied Bankhave better service options. Like recently, MCB and Allied Bank

have been privatized. So this has increased the competition amonghave been privatized. So this has increased the competition among

the private banks. the private banks.

If Faysal Bank Limited wants to compete with other banksIf Faysal Bank Limited wants to compete with other banks

and wants to increase its shares in the market then they have toand wants to increase its shares in the market then they have to

improve their services and also have to spend on advertisement. improve their services and also have to spend on advertisement.


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FUTURE PLANSFUTURE PLANS

Going forward, the Bank is poised for growth of its financingGoing forward, the Bank is poised for growth of its financing

base through selective Morabaha (Financing Resale of Goods),base through selective Morabaha (Financing Resale of Goods),

Musharakah (Mutual Paticipation Financing), ModarabahMusharakah (Mutual Paticipation Financing), Modarabah

(Certificate of Investment) and Ijarah (Leasing) transactions.(Certificate of Investment) and Ijarah (Leasing) transactions.

FBL's equity base is extremely strong and it plans to aggressivelyFBL's equity base is extremely strong and it plans to aggressively

expand its business by introducing Islamic deposit and investmentexpand its business by introducing Islamic deposit and investment

products as well as focusing towards developing business in theproducts as well as focusing towards developing business in the

consumer finance segment.consumer finance segment.

They planned to open three more branches for which theyThey planned to open three more branches for which they

have gained approval from the state bank and they hope to have allhave gained approval from the state bank and they hope to have all

the three branches operating by the end of 2002.the three branches operating by the end of 2002.


CONSUMER FINANCINGCONSUMER FINANCING

INTRODUCING SOONINTRODUCING SOON

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OBSERVATIONS AND CONCLUSION OBSERVATIONS AND CONCLUSION

We observed Faysal Bank Limited as a financially soundWe observed Faysal Bank Limited as a financially sound

bank. Its profits are increasing year by year, its staff is very goodbank. Its profits are increasing year by year, its staff is very good

and sincere with the bank. But due to the present economic slump,and sincere with the bank. But due to the present economic slump,

the business of the bank is reduced. Foreign currency business ofthe business of the bank is reduced. Foreign currency business of

the bank is almost stopped. the bank is almost stopped.

Now the bank is concentrating on its Rupee Business and inNow the bank is concentrating on its Rupee Business and in

this regard bank has recently introduced a new scheme calledthis regard bank has recently introduced a new scheme called

Faysal Izafa. The bank is also opening its branches in near futureFaysal Izafa. The bank is also opening its branches in near future

in Sialkot. This will help the customer of Sialkot to get betterin Sialkot. This will help the customer of Sialkot to get better

services from such a good bank in the private sector. services from such a good bank in the private sector.

We found the rules and regulation of the bank very good andWe found the rules and regulation of the bank very good and

strict e.g. a limited staff is allowed to enter cash department andstrict e.g. a limited staff is allowed to enter cash department and

Security system is very good and modern. Security system is very good and modern.


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SUGGESTIONS SUGGESTIONS

AND AND

RECOMMENDATIONSRECOMMENDATIONS

After making this term report on Faysal Bank Limited,AbdaliAfter making this term report on Faysal Bank Limited,Abdali

Road, Multan, we have suggested some recommendations for theRoad, Multan, we have suggested some recommendations for the

bank which will help the bank to improve its service and the bankbank which will help the bank to improve its service and the bank

would be able to compete with other banks in the private sector. would be able to compete with other banks in the private sector.

There is a great burden of customers on each branch ofThere is a great burden of customers on each branch of

Faysal Bank Limited. We suggest that Faysal Bank Limited shouldFaysal Bank Limited. We suggest that Faysal Bank Limited should

open new branches so that burden of work should be shifted. open new branches so that burden of work should be shifted.

Credit cards should be started and marketing practices shouldCredit cards should be started and marketing practices should

be increased. Marketing practices should be done in a bestbe increased. Marketing practices should be done in a best

possible manner and marketing strategy started at any of thepossible manner and marketing strategy started at any of the

Faysal Bank Limited branch should be adopted by each branch ofFaysal Bank Limited branch should be adopted by each branch of

Faysal Bank Limited.Faysal Bank Limited.

There is a great need of online banking. It should beThere is a great need of online banking. It should be

introduced in the bank at its earliest. Bank should also start ATMintroduced in the bank at its earliest. Bank should also start ATM

Card in the near future and the Bank should also spend onCard in the near future and the Bank should also spend on

advertising and promotion. advertising and promotion.


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Al faysal bank ltd

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