Internship Report on

by : Arslan Pervaiz

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Executive Summary
As we all know very well that time and tide wait for none. So, because of this rapid change in time and era we have to cope with it. During this era I got an opportunity of getting practical knowledge about the Banking system in Pakistan. So to quench the thirst of practical exposure and for getting the basic knowledge about Bank I joined FAYSAL BANK LIMITED westrige branch Rawalpindi. During six week in FBL I gather all necessary information about FBL. Efforts have been made to compile this report in such a way that activates its salient features not only for students but also for the layman. I have divided this report into different parts such as introduction of, history of FAYSAL Bank, production, opening of account and operations, conclusion and learning as a student intern.

VISION STATEMENT:
To be the bank of first choice with the highest ethical principles as our guiding force.

MISSION STATEMENT:
To excel in providing innovative, value based banking solutions to meet changing needs of customers and to strengthen the image of trust and reliability.

GOALS AND OBJECTIVES:
Goals and objectives are very clear but they can be change with the requirements of the market. The primary goals are to earn profit, to get deposits and advances for the successful business. Because in the present environment of full competition it is must for any organization to get target profit to survive in the market because if you do not do this will not be able to survive. Also due to this competition organization wants to introduce innovative products with the advantages of their own this will give them a competitive edge. They want to provide excellence in services. Another goal is to increase profitability.

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To get deposits helps organization to become stable. That’s why it is a primary goal. Advances help organization to become efficient.

REGIONS AND AREAS
Business area of the organization is mainly Pakistan. They have divided Pakistan into three region i.e. 1. North region 2. South Region 3. Central Region

HISTORICAL REVIEW:
Faysal Bank started operations in Pakistan in 1987, first as a branch set-up of Faysal Islamic Bank of Bahrain and since 1995 as a locally incorporated Pakistani bank under the present name of Faysal Bank Limited. On January 1, 2002, Al Faysal Investment Bank Limited, another group entity in Pakistan, merged into Faysal Bank Limited which resulted in a larger, stronger and much more versatile institution. In fact it has the highest share capital amongst private banks in Pakistan and is amongst the largest in terms of equity. Faysal Bank Limited is a full service banking institution offering consumer, corporate and investment banking facilities to its customers. The Bank’s widespread and growing 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 an effective manner.

COMPLAINT CENTRE:
Your views about our products and services are important to us. If you have any complaint regarding our services, we welcome you to contact us through: E-mail: customercomplaint@faysalbank.com

ADDITIONAL INFORMATION:
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If you require any additional information about our product and services or need clarification of any information given on our website, please contact us through: E-mail: customerinfo@faysalbank.com

WESTRIDGE BRANCH
This branch was opened on January 22, 2007 After the inception of the branch they have to face so many difficulties because there were so many competitors in the market and customer trust them. Trust building, establishing a good repute and Strong customer relationship is really a very difficult task. But the Faysal Bank has proved and made its own place and this was only possible because of the hard work of all employees as they all worked as a Team. All employees are the member of Faysal Family and they feel proud to be a part of it and worked together for the achievement of their set goals.

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(Faysal Hayat Khan) BRANCH MANAGER (Kashif Bashir) OPERATION MANAGER (Zubair khan) OPERATION OFFICER (Hafsa Hamid) CUSTOMER SERVICE OFFICER (Adnan Khan) (Aamir Ejaz)

PERSONAL BANKING OFFICERS (Masood Chaudary) TELLERS (Usman Anwar)

PRODUCTS AND SERVICES :
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Faysal bank has the following products. We are a progressive bank striving to offer innovative products, easy accessibility, quality service & convenience to our customers. We offer customized financing solutions with flexible criteria and convenient loan tenures. You can avail car, home and personal loans through our various branches. We also offer a host of Corporate & Investment Banking Services to our clients, which include financial and corporate advisory services, along with a wide array of tools to help them achieve their goals.

Deposit Accounts Consumer Loans Faysal Savings Account Car Finance Rozana Munafa plus Account House Finance Basic Banking Account Faysal Finance Faysal Moavin Faysal Premium Faysal Izafa Mahfooz Sarmaya FCY Saving Plus Corporate & Investment Banking Services Corporate Financing Pocket Mate Visa Debit Card SME Finance Travellers Cheques Trade Financing Transfer of Funds Treasury & Capital Markets Safe Deposit Lockers Investment Banking Non-stop Banking Agricultural Financing Cash Management SME Foreign trading




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• • •
• • • • • •

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FAYSAL MOAVIN:
‘Faysal

Moavin’ is a savings account made especially for genuine savers, in which profit

is paid on monthly basis. Your monthly savings are safely deposited into ‘Faysal Moavin’ savings account, where we raise the value by adding monthly profits to your hard earned savings. PROFIT RATES: Profit rate for Faysal Moavin is based on a tiered structure as mentioned in the table. Tiers in Rs. Expected profit rate p.a* 0-50,000 0.10% 50,001-100,000 2% 100,001-250,000 3.25% 250,001-500,000 4.25% 500,001-1,000,000 5.50% 1,000,001-1,500,000 6.75% 1,500,001- 2,500,000 7.50% 2,500,001 & above 3.00% *Zakat and Govt. taxes are applicable as per law ** Note: Rates are subject to change

Features and Benefits: Following benefits can be availed by customers:

No minimum balance requirement No limitation on number of transactions Profit paid even after the highest tier i.e. Rs.2, 500,000 @ 3.00% p.a. Access to your account through on-line banking at over 75 Faysal Bank branches country-wide. Easy access through cheque book and Debit/ATM card. The ATM/Debit card can be used at over 2000 ATMs in the country.


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Documents Required:

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Copy of CNIC Completed specimen signature card Copy of service card or any other proof of employment or letter head of the company.

FAYSAL SAVINGS ACCOUNT:
Pak Rupee Saving Account: You may open a Faysal Savings Account with only Rs.10, 000/-. There is no restriction on the number of transactions in this account and you get your profit every six months. This account gives you a progressively better profit as the amount in your account grows. Profit will be subject to deduction of Withholding Tax and Zakat as per applicable rules.
SAVING(Basic) Avg. Bal. Rs. 10,000 July - December 2009

Rs.0 to Rs.25,000 Rs.25,001 to Rs.100,000 Over Rs.100,000

0.10% 0.75% 1.50%

FAYSAL IZAFA:
Behter Zindagi K Lye

Faysal izafa term deposit brings you the opportunity to secure your savings and earn attractive profits. You can invest in Faysal Izafa term deposit with as low as Rs.25, 000 And enjoy the flexibility of tenure, convenience of accessibility, attractive earnings and valued added benefits.

EXPECTED PROFIT RATES:
Choose the tenure of investment that suits you the best: Tenure* Annual profit rate** Monthly profit rate** 1 to 5 years 9.75% 9.25%

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*For tenures other than those mentioned above, please contact your nearest branch. ** Zakat and taxes are applicable as per government regulations. Access to profit: • • The bank will open a current account and you will be issued a debit/ATM* card along with the check book Your profit then will be disbursed in your account and you would be able to draw it from over 2,000 ATMs and all Faysal Bank branches in Pakistan on annual/monthly** basis *ATM charges other than Faysal Bank ATMs are applicable. **Premature encashment is applicable as per terms and conditions. Other Benefits: • •

There is no annual fee for the debit/ATM card for entire tenure First check book is provided free on investment of Rs.300,000 or more Financing facility of up to 90% of invested amount

Documents Required: • • • Copy of CNIC Completed specimen signature card Copy of service card or any other proof of employment

For other than salaried/individual customers, further documents are required. For details please contact

THE FAYSAL SAHULAT ACCOUNT:
PAK RUPEE CURRENT ACCOUNT:

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You may open a Faysal Sahulat Account with a minimum balance of Rs.5, 000/- only. The account has unlimited transaction facilities. As a special feature of this account, with a monthly average balance of only Rs.300, 000/-*, you may avail the following banking services absolutely free • • • • • • • •

Countrywide cash withdrawal facility Minimum transactional amount Countrywide cash deposit facility Minimum transactional amount Pay-orders per year Cheque leaves per year Demand Drafts drawn on FBL, local network Small Locker (Where available) ATM Card

365 withdrawals per year Unlimited Unlimited Unlimited 365 365 365 1 1 per year

*Subject to change as per Bank’s Policy

Faysal Premium:
Faysal Premium is a savings account specially designed for high value deposits with attractive profit rates having the following features. Features: • • • • • Account can be opened with an initial deposit of Rs. 5 million Profit is calculated on monthly average balance. Profit payment on monthly basis. Tiered profit structure providing an incentive to save more. Access to account through on-line banking at all Faysal Bank branches across Pakistan.

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Term deposit: Faysal Izafa:
Features
• • • •

Account

can

be

opened

with

an

investment as low as Rs. 25,000/. Tenure from one year to five years. 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.

FCY SAVING PLUS :
FCY Saving Plus is a new foreign currency savings account with attractive profit rates where 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 calculated on monthly average balance. Profit is disbursed on monthly basis. Tiered profit structure providing an incentive to save more. No FCY cash deposit charges

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• • • • •

On maintaining the monthly average balance equivalent to USD 50k or above, the following additional facilities are provided. Free online banking Priority Banking Borrowing in PKR up to 90% of FCY Preferential rates on consumer finance

BASIC BANKING ACCOUNT
Pak Rupee Current Account:

:

You may open your Basic Banking Account with any amount you like as there is no minimum balance requirement. You can make two deposits and two withdrawals in a month absolutely free. There are no ATM transaction charges on Faysal Bank ATM machines. Also, you will receive the annual Statement of account without any charges.

Consumer Finance Department has offered the following products. The details are:

FAYSAL FINANCE:
Add More Color to Your Life

Faysal Finance gives you an opportunity to liberate yourself from financial anxieties and fulfill your dreams and aspirations in an easy and affordable manner. ‘Faysal Finance’ is based on ‘Morahaba’ mode of financing. It has been designed to cater to financial needs of people from all walks of life:

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Professional Assistance offers financial support for qualified professionals and to the self-employed to set-up or enhance private practices. Credit Partner can help you build a new business or expand an existing one. Life Sketch can be used to upgrade your life style or you can utilize it as a monetary support for your child’s future.

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You are eligible for “Faysal Finance” if: • • • • You have a Pakistani Computerized NIC. Your age is between 25 & 65 years. Your minimum verifiable monthly income is Rs. 18,000. You have minimum two years of working experience.

Tenor of repayment is between 1 month (min.) and 5 years (max.)

FAYSAL CAR FINANCE:
Faysal Car Finance is the most flexible product designed to meet customer needs Now you can swiftly, easily and cost effectively owns a car if you are: • • • • • A Pakistani National holding the New Computerized Identity Card (NADRA) A National Tax Number (NTN) holder At least 20 years of age at the time of financing and will be less than 60 years old before full payment is made to the Bank A Businessman or Self-Employed with a minimum of one year experience in the same business and profession. A Salaried person with at least two years employment history.

NON STOP BANKING
All branches of Faysal Bank remain open for business from 9 a.m. to 5 p.m. from Monday to Thursday and Saturday. On Friday, the bank is open from 9 a.m. to 12.30 p.m. and then again from 3 p.m. to 5 p.m. To suit your needs, we have extended our banking hours on Saturdays. Now you can enjoy 5 p.m. The Faysal Bank Fast ATM & Debit card provides you round the clock service our consistent and quality service from 9 a.m. to

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ATM AND DEBIT CARDS

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Our FAST ATM and Debit Card, gives you access to all ATMs countrywide linked to both the M-Net and 1-Link switches. In addition to this your FAST Debit Card allows you the facility to make purchases at over 2,000 retail outlets linked to the ORIX Network countrywide. FAST ATM Card: Your FAST ATM Card offers you the facility to withdraw cash at all ATMs countrywide, to make balance inquiry and generate mini-statements (on Faysal Bank ATMs only). Using your FAST ATM Card you can withdraw up to Rs.25, 000/- per day on both Faysal Bank and all 1-Link ATMs and up to Rs.10, 000/- per day on all M-Net ATMs.

Western Union Service:
Western union money transfer is the fastest way to receive money worldwide. It is working in almost in 200 countries. Different Govt and private organizations are dealing with western union. As Faysal Bank is also dealing with it and a person can only receive money through western union in Faysal Bank.

SAFE DEPOSIT LOCKERS:
Most branches of Faysal Bank offer lockers for lease, in a variety of sizes at very competitive rentals. Locker facility is available to all customers maintaining minimum balance requirements in their respective account categories. Lockers are placed in a secure environment with pleasant custodians to assist customers. Additionally all lockers are insured through a reputable insurance company. Lockers can only be issued to those persons who have an account in the Bank.

FINANCING FACILITIES:
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In Financing Sector Faysal bank is providing the following Facilities.

CORPORATE FINANCING
Relationship, Reliance and Commitment: Faysal Bank Limited is fully geared to meet the changing economic challenges present in Pakistan. We are ever striving to build meaningful relationships with our customers and become partners in their growth and progress by acting as financial advisors and consultants as well as financiers. Our Corporate Finance Group extends both short and long term financing facilities designed to fulfill the individual need of each corporate customer

AGRICULTURE FINANCING:
Timely, Affordable and Attainable Faysal Bank offers specialized products for the agricultural sector. Our branches located in agricultural areas of Pakistan are all equipped to help the local farmers improve their yield and methods of farming by offering timely and affordable modes of financing to suit their needs. To increase its outreach into agricultural regions of Pakistan, Faysal Bank has entered into strategic alliances with other specialized banks through which it will be financing the needs of farmers.

MY EXPERIENCE:
I joined Faysal Bank on 23rd of July. I did my internship for Six weeks in Faysal Bank, westrige Branch. Basically there were 2 main departments in the bank i.e. Front Office and the Back Office (Operations). I mainly worked in front office as I have spent four weeks of my internship there and two weeks in back operations. In these two departments I learnt very much about the workings and functions of the bank and especially during

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my internship in Operations I come to know what actually banking is? And how the things to be done there. It was the very first practical and memorable experience of my life and will be ever lastly remembered. During my short stay in the organization I found employees very cooperative. They were very helpful to me. It was a newly constructed building which is designed only for the bank. This is located on Main Road. This is a very convenient location for the customers to come to the bank.

OPERATION DEPARTMENT:
All the documentation and paper work and filing of documents get occurred in Operations. All the sensitive transactions like transfer of Internal Cheques, Posting of Clearing & Collection get completed in Operations. Direct dealing of Customers in Operation area is strictly prohibited. Customers cannot interact with the staff members sitting in operations. If someone wants to meet, he should have to wait in visiting area.Mr.Kashif is the Operation Manager, who keeps an eye on all the activities occurring in Operations. All the activities get completed under his supervision.

DAILY ACTIVITIES::
The day to day activities in Front Office occur very actively in a big frequency. As here the direct dealing of Customers with the related staff members takes place. All types of queries get held in Front Office as there is a Customer Services department where all types of activities such as Account Opening, Issuance of cheque books, Atm Cards, transactions Of Western Union, Balance enquiries and all other customers concerning matters are held here. I have noticed that the Front Office staff is very active and efficient in customer dealing as they try to resolve all the issues and problems at their own end and only involve the Manager and Ops. Manager if the problem is of high serious nature. The details which I have learnt during my internship are as follows:

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PROCEDURE OF ACCOUNT OPENING :
First of all the customer has to fill an account opening form. Then he has to attach his CNIC card and has to signature the form. Now he has to fill pay in slip and has to deposit money to the cash counter. Bank will allot him or her number in one day after conforming from head office which is located at MALL ROAD LAHORE. Following things are needed for account opening: • • • • • • Account opening form Specimen signature card Next of kin Letter of thanks Issuance of cheque book ATM if requested by the customer (the application will be separate for ATM)

ACCOUNT OPENING FORM:
• • • • • • • Account opening form consist of Category of account Currency Title of account Account number Customer information Initial deposit

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Authorize person in case of customer death

SPECIMEN OF SIGNATURE CARD :
The specimen of signature card consists of name and signature of customer.

NEXT OF KIN :
In the next of kin the customer authorizes the bank to pay the proceeding of his/her account to the related person by describing the relationship of the person with the costumer after the death of the customer.

LETTER OF THANKS:
Letter of thanks is issued by the bank to the customer in order to thanks the customer for opening the account and for confirmation about the account that it is being opened.

ISSUANCE OF CHEQUE BOOK:
A cheque book of usually 25 pages is issued to the customer and each leave charges rupees 5 per page. The cheque book comes in three working days after the opening of account.

MINIMUMUM BALANCE REQUIRMENT:
Minimum balance requirement for opening of Current; PLS Savings and Foreign Currency accounts, at present, are as follows:
Account Type Amount

Current PLS Savings

Rs. 5,000/Rs.10, 000/-

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MINIMUM BALANCE CHARGES:
A charge of Rs. 50 (or as per prevailing tariff) will apply on a monthly basis, automatically deductible by the system, when the balance will not be mentioned There are many reasons for closing an account

Account holders own request

• Death of account holder • Closing of account due to bad manners of account holder.

DORMANT ACCOUNTS:
As a policy, separate letters of reminders, tactfully worded must be sent separately or may be enclosed along with the half-yearly account statement prompting the customer (s) to start operation in the account. In case mail gets returned (once by registered mail A.D. and subsequently by courier) due to un-notified` change of address by the account holder, then the account.

PAY ORDER ISSUANCE
Special conditions for remittances will apply at the time of issuing a Payment Order. The Fund transfer Application Form (Annexure 3.1) will be thoroughly checked for customer signature verification, amounts in words and figures tallying and name of payee/beneficiary clear. Cash/Cheque/Debit authority tendered along with above Application form will be acknowledged for receipt by the Teller and after posting/processing will subsequently be handed over to the DAD supervisor for review and approval The Fund transfer Application form along with the relating cheque/pay-inslip will be handed back to the concerned officer for preparation of the Payment Order. Payment Order leaf will be allocated from the running stationery block in the possession of the officer. (Or system generated, as the case may be) In addition to the printing out of amounts in figures and words, the same will be subjected to protect graph as well.

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The Payment Orders issued will be then be entered in the Register (Alternatively, the register can be system based) Each entry in the register will be initialed by the authorized officers as a token of their review and approval. (May waive requirement in system maintained register) Pay Order applications will be kept along with daily transaction vouchers. Departmental copies will be filed in numerical/chronological order without the copy of Pay Order application and will not be taken out from the file when the original instrument is received for payment. The original Pay Order will be handed over to the customer or his authorized representative against acknowledgment on the FTAF or duplicate P.O slip.

TREATMENT OF UNPAID PAYMENT ORDERS:
All the payment orders not presented for the period of six months or more will be transferred to separate account as “unclaimed pay orders” under sundry creditors.

ISSUANCE OF DUPLICATE PAYMENT ORDERS:
As the Bank's payment orders are not transferable, duplicates thereof may be issued to the purchaser only against a letter of indemnity, provided they confirm in writing that the Originals have been lost and will be returned to the Bank for cancellation as and when traced. 1. A letter of indemnity will be obtained by the Manager Operation / Branch Manager.

2. If a replacement Payment order is issued it will be made in the name of the original beneficiary. 3. The replacement payment order will carry a notation “Issued in lieu of payment order No. _______ “. Notation in above respect will also be made in the remark column of the relative original entry payment order register and on the department copy, which will be transferred to ‘Paid’ file.

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CANCELLATION AND REFUND OF PAYMENT ORDERS:
The amount of payment order in favor of a third party may be refunded to the purchaser by cancellation provided the original payment order is surrendered by him to the Bank.

Observations and Conclusion:
FAYSAL bank is a financially sound bank. It is now financially more powerful and secure with superior operational capabilities, wider distribution, and greater depth in human resource skills. This development has led to the formation of one of the largest local private bank in Pakistan. The bank has come a very long way in a very short span of time. With stronger brand image and firmer footings the bank has been able to leverage its infrastructure to launch new products and services. For FAYSAL bank customers are the first priority. Sole of any business are the customers and their satisfaction is an achievement for the organization. FAYSAL bank is using customer services and automation as its marketing weapon. Management believes that satisfied customers are one of the key factors for future growth of bank. Keeping in mind the diverse needs of customers, FAYSAL bank has launched several products and services ranging from deposit generating liability products to mortgage and financing asset products to ATMs and charge cards. Bank has restructured its consumer banking division by further dividing it into three major business units: • • • Consumer assets Personal finance Cards

This allows having a more focused approach on different segments of the market. FAYSAL bank has stepped into highly dynamic cards industry with the launch of Rupee denominated American Express Charge cards. The Charge cards are positioned as the premier card products in market offering benefits to a profile of financially independent and image conscious customers.

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Conclusion:
FAYSAL bank will remain an aggressive and innovative financial institution and continue to adhere to the tradition of understanding its customer’s needs and looking for new ways to serve them. Further integration and productivity gains will result in stronger performance in terms of revenue as well as service quality in the coming years. The

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strong leadership of Board and management and the relentless effort of the staff at FAYSAL bank will be able to offer more superior products and services to customers and to contribute more to economic and social development of Pakistan while developing a bigger future for it

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