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Faysal Bank Limited

Allama Iqbal Town Branch, Lahore.


Submitted To : Miss Habiba Main
Branch
Faisal Town, Lahore.
Submitted BY : Laib
24 Feb 2015 to 10 Apr 2015

Dedication
I dedicate this project to my parents
and my teachers and those students
who wish to study but due to
financial problem they cannot study.

Acknowledgement
I would like to thank my project
guide Branch Manager Muhammad
Ali and Operation Manager
Muhammad Rafaqat Ali and all the
people who provided me with the
facilities being required and
conductive conditions for my MBA
project.

Table of Contents
Executive Summary
Introduction of Faysal Bank Ltd
Vision Statement
Mission Statement
Board Of Directors
Deposit Products
Current Accounts
Faysal Business First
Faysal Sahulat
Faysal Basic Banking
Saving Accounts
Faysal Moavin
Faysal Premium
Faysal Savings
Faysal Anchor Savings
Term Deposit Account
Faysal Izafa
Faysal Currency Accounts

FCY Savings Plus


FCY Current Account
Retail Services
ATM Card
Faysal SMS Alert
Mobit Faysal Mobile Banking
Faysal Lockers
Transfer Of Fund
Western Union
Faysal e-Statement
Consumer Lending
Credit Card
Personal Installment Loan
Balance Transfer Facility
Car Finance
Home Finance
Procedure of Opening the Account
Remittance
Schedule Of Charges Faysal Bank Limited
Profit Rates Of Faysal Bank
Conclusion
Bibliography

Executive Summary:
This report is the practical part of the most vital
practice of my MBA-Finance Program. The sole
objective is to familiarize the student with the
practical manipulation of business organization.
This report has been written to know how
organization like Faysal Bank work and manage
to achieve their goals.

In this report, I am discussing the operations of


Faysal Bank. I have explained the history of Bank
following with the banks operational structure
and services of FBL.

I have also tried to turn the attention of the


readers towards the functions, policies and
practices of activities of the bank. I have tried to
explain those activities that I have observed
during my tenure at the bank.

Introduction of Faysal Bank

Faysal bank limited was incorporated in Pakistan


on october 3rd, 1994 as a public limited company
under the companies ordinance 1984. Currently,
the banks shares are listed on the Lahore,
Karachi and Islamabad stock exchanges. Faysal
bank is engaged in commercial, retail, corporate
and Islamic banking activities.
Faysal banks footprint now spreads over more
than 80 cities with over 250 branches. With
business assets in excess of pkr 350 billion,
placing it amongst top ten branches in Pakistan.
Faysal banks amibition is to provide par
excellence services to its customer while meeting
the financial needs.
Faysal Asset management limited (faml), an
asset management company was launched in
2003 within faysal bank group. The joint venture
partners have international expertise of
managing funds in diversified markets around the
globe.

Vision Statement:
Excellence in all that we do

Mission Statement:
Achieve leadership in providing financial
services in chosen markets through
innovation.

Board of directors
Mr. Farooq Rahmatullah
Chairman

Mr. Ahmed Abdulrahim Mohamed


Abdulla Bucheery
Vice Chairman

Mr. Nauman Ansari


President & Chief Executive Officer

Mr. Imtiaz Ahmad Pervez


Director

Mr. Juma Hassan Ali Abul


Director

Mr. Abdulellah Ebrahim Al-Qassimi


Director

Mr. Mohammad Wasif Ljlal

Director
Mr. Mian Muhammad Younis
Director

Deposit Products
Current Accounts
Current account is one where money is constantly being drawn
out and put in since the money withdraw able at any time by
the customer, therefore the bank do not pay profit on current
account.
Deduction of zakat is also not applicable on current
account.

Faysal Business First


Minimum balance to be maintained Rs. 5000/-

Free services:

SMS alert
Mobile banking
Debit card (waiver of annual fee)
E-statement facility
Online Banking

Faysal Sahulat
Minimum balance to be maintained Rs. 5000/-

Free services:
cheque book
pay orders

duplicate account statement


online banking facility

Basic Banking Account


Account opening with initial deposit of Rs. 1000/- no minimum
balance is required to be maintained.

Free services:
Unlimited transaction facility through ATMs
1 free of charge statement of account per year

Maximum of two free deposits and withdrawals


through Counters

Account type

Minimum
balance

profit

Zakat
deduction

Faysal business
first
Faysal sahulat

5000

NA

NO

5000

NA

NO

Basic banking
account

Initial 1000

NA

NO

Saving account:
The aim of this account is to encourage and mobize saving of
the people. Saving account is generally opened by the person
or small income and for salary purpose. The bank invests the
money of saving account and the profit or loss is shared
between bank and account holder.
Deduction of zakat is applicable.

Faysal Savings
No minimum balance is required to be maintained

Services:
online banking
Debit card/cheque book
Profit payment semi-annually

Swift Savers
Minimum balance to be maintained Rs. 5000/=

Services:

Free first cheque book


Online banking
Debit card
Profit payment monthly

Faysal Moavin
Minimum balance to be maintained Rs. 20000/-

Services:

Online banking
Debit card
Profit payment monthly
High rate offering

Faysal Anchor Savings


Minimum balance to be maintained Rs. 20000/-

Services:

Profit payment monthly


Online banking
Debit card/cheque book
Beneficial for saving

Faysal Premium
Minimum balance to be maintained Rs. 100000/-

Services:

Account
Type

profit payment monthly


Online banking
Bebit card/cheque book
High rate offering

Minimum
Balance

Faysal
NA
Saving
Swift
5000
Savers
Faysal
20000
moavin
Faysal
20000
Anchor
Saving
Faysal
100000
Premium
Term Deposit

Profit

Zakat
Deduction

5.5%

Yes

5.50%

Yes

6.25%

Yes

5.5%

Yes

5.50%

Yes

Term deposit is the facility to save money for specific period of


time like 1 month, 6 months etc. It gives high profit on savings
as compared to normal profit rates.

Faysal Izafa
Minimum balance to be maintained Rs. 25000/-

Services:

Online banking for current account


Debit card/cheque book
Profit payment monthly, Quarterly, semi-annually,
annually

Faysal Currency Account


Faysal bank provide the facility of account open in foreign
currency. Currency include US Dollar, Riyal, Japanese yan, Euro
etc.

FCY Saving Plus


Minimum balance to be maintained USD 500, EUR 350

Services:
profit payment semi-annually
Rate offered 0.10%, 0.15%

FCY Current Account


Minimum balance to be maintained USD 500, EUR 350
Transactional Account for customers dealing with FCY.

Retail Services

ATM Card
Faysal Bank provide ATM facility for all its account holders
which gives the facility of 24/7 in nation wide. It provide 3 types
of ATM cards in Classic, Gold & Platinum.
Classic
Gold
Platinum

25000 withdraw
50000 withdraw
100000 withdraw

Faysal SMS Alert


Bank gives the sms facility to all its account holders regarding
their account transactions including deposit, withdrawals.

Mobit-Faysal Mobile Banking


Faysal bank provides accessing your account balance
information and mini statements whenever you want and
wherever you need them, with comfort and peace of mind.

Faysal Lockers
Faysal Bank provides Lockers facility of various sizes
Annual locker rent ranges from Rs. 2000/- to Rs. 6000/Locker size
Small
Medium
Large
Extra Large

Transfer of Funds

Charges
2000
3000
4500
6000

Faysal bank facilitate its customers by giving transfer facility


from one account to another. It gives the facility of pay orders
for payment with in city or outside the city in the form of
demand draft.

Western Union
Through western union customers receive foreign remittance in
faysal bank in nation wide and can send money also through
western union wherever they want to send.

Consumer Lending
Credit Card
Faysal Bank facilitate our customer through credit card facility

Required Documents:

Salary slip of customer it must be Rs. 50000/Bank Statement of account of four months
Customer Declaration form
Branch Manager recommendation form
Key Facts Statement which include all the terms &
conditions of credit card

Personal Installment Loan


Faysal Bank personal loan provides you with the financial
advantage to do things you have always wanted to but never
had the sufficient for. Take that much=needed holiday. Buy a
car, refurnish your house, purchase a new TV or finance a
better education to your children.
Make payment of loan on monthly, quarterly, semiannually or annually basis.

Balance Transfer Facility


In BTF per day markup charge on amount which is only
used.
Running finance ( loan from bank )

Required documents:
Bank statement attached of six months
Personal loan-key facts statement include terms
& conditions of Balance transfer facility
Copy of NIC , Signature specimen card
Customer declaration form
Branch manager recommendation form
Cheque book and card issued within 16 days to
customer

Car Finance
Benefits & Features

No upfront registration charges


No rentals before delivery of car
Minimum down payment 20%
Tenure period ranging from 2 to 5 years
Financing of all brand new locally assembled vehicles
and used cars
Financing limit ranging between Rs. 500000/- to Rs.
5000000/- for brand new cars

Documentations:
Two passport size photographs
Copy of NIC
Bank statement for the last six months

Salary certificate ( for salary individual )


Business proof ( for business person )
N.T.N certificate
Two Witnesses

Eligibility:
Pakistan National Identity Card Holder
Over 20 years of age ( Max 65 in case of salaried and
62 in case of business person at the time of maturity
of the loan )
Salaried, Businessman or Self employed.

Home Finance
Home finance scheme as launched by Faysal Bank. This product
has received overwhelming from the customers due to its
lowest markup & high quality services provided by Faysal bank.
In branch level they cannot provide home finance to its
customers but it included in its consumer lending .

Accounts And Their Documentation

1. Individual Accounts:
National identity card of the account holder
If signature of the account holder are very easy then
two passport size photographs are required
Next of Kin ( nominee of account holder )
Income Proof

2. Sole Proprietorshiop Account:

National identity card of the account holder


NIC of Next to Kin
If signature are easy then two passport size photograph
are required.
Application on Business Letter Pad
Stamp of Business ( same spell as letter pad and also
write proprietorship )

3. Partnership Account:
National Identity Card of the partners
Application on Business Letter Pad
Stamp of Business ( same spell as Letter pad and also
write partnership )
Partnership Deed
Copy of National Tax Number
If Partnership register then Form C issue by Government

4. Company Account:
Copies of NIC of Directors of the Company
Certificate of Incorporation of Business
Certificate of commencement of Business ( in case of
Public Limited Company )
Article and Memorandum of Association
Latest copy of Form-29
List of Directors
Copy of Board Resolution ( who operate account in bank
among Directors )
Copy of National Tax Number

Procedure of Opening The Account

Account Opening Form:

First of all, the customer fills the Account Opening Form


(AOF). Filling of account opening form include type of
account, currency of account, nature of account and
signature of customer in form and also in signature specimen
card.
Copy of NIC attached
Undertaking if specimen signature is differ from CNIC
FATCA Form Foreign Account Tax Compliance Act
( attached to know that account holder has foreign
income or not )

Depositing of amount in account:


The customer deposit cash in account. For this purpose cash
pay-in-slip is used. The minimum initial deposit is fixed for
each account according to the nature of account.
If Saving Account the minimum requirement is
Rs.1000/ If Current Account the minimum requirement is
Rs.5000/-

Issuance of a Cheque Book:


Faysal bank cheque book consist of 25, 50 and hundred
leaves. The process of issuing cheque book takes five
working days.

Closing OF Accounts:
All customer gives the request to close the account
His signature is verified
Withdraw all his remaining amount

No charges for account closing


Permission is granted by the authorized person ( the
manager )

Remittance
The clearing Learned from Muhammad Asad. The basic
function of the clearing department is facilitating the
customer. it provides them the services in collection of
their cheque in other banks. CLEARING actually means
transfer of funds from one branch of bank to the other
branch of the same banks or the other bank on which the
instrument is drawn, without involving cash State banks clearing
house.

NIFT:
NIFT stands for National institutional facilitation technologies. NIFT
collects cheques, pay orders, demand draft, travelers cheque, etc.
from all the branches of different banks within the city through the
carriers and send them to the branches on which these are drawn
for clearing. NIFT prepare a sheet for each branch showing the
number for in instruments and amount in its favor and drawn on it
and send it to each branch.

Demand Draft:

The customer makes a request to the banker for a demand


draft. The client mentioned the name of payee in the favour of
which it is to be paid, the name of the branch on which it is
drawn and amount of draft on the form and puts his signature
on it. Afterwards he deposits the amount in cash with the bank.
In case he is the account holder of the same bank, he can give
cheque instead of cash upon which the banker transfers the
amount from his account. The charge are Rs.200/-

Issuance of dublicate DD:


Bank can issue duplicate demand draft on customers request.
The charges are Rs.300/-

Cancellation Of DD:
Demand draft also cancelled by bank on customer request.
Request signed by customer. Cancellation charges are Rs.350/-

Pay Order:
A pay order is an instrument in writing issued by bank for a
certain sum of money payable on demand to the order of the
payee mention within the city, where as pay slip is used for
bank internal use.

Issuance of duplicate Pay Order & Cancellation:


Bank also issue duplicate pay order on customer demand. It
take charges of Rs.300/Pay Order is also cancelled by customer request and take
charges of Rs.350

Online Transaction:

In online Transaction cheque of different branches can be paid


of the same bank. Previously it is not common but now it is very
common in banks. The branch is debited and the branch that
has made payment is credited.

Schedule Of Charges Faysal Bank Limited

Pay order Issuance

Rs.150/-

Stop payment of PO

Rs.450/-

Cancellation of PO

Rs.350/-

Issuance of Demand Draft

Rs.300/-

Stop payment of DD

Rs.300/-

Cancellation of DD

Rs.350/-

RTGS Charges
Monday to Friday

9:00AM to 2:00PM 200/2:00PM to 3:30PM 300/3:30PM to 4:30 PM 500/-

Collection Cheques FCY

Rs.850/-

Collection Cheques LCY

Rs.400/-

Intercity Clearing

Rs.200/-

Same day clearing


(outward)
Local USD Clearing Cheque

Rs.350/-

Outward Telegraphic
Transfer

Rs.300/-

Rs.550/-

Profit Rates Of Faysal Bank Limited

Pak Rs. Term Deposit


PKR 0-99,999
Profit Payment Frequency
Tenor
1 Mth
3 Mth
6 Mth
1 Year
2 Year
3 Year

Monthly
5.00%
5.00%
5.00%
5.00%
5.00%
5.00%

Qtrly
5.00%
5.00%
5.00%
5.00%
5.00%

Half Year

5.00%
5.00%
5.00%
5.00%

PKR 100,000-499,999
Profit Payment Frequency

Annually

5.25%
5.25%
5.25%

Tenor
1
3

M t h
M t h

6
M t h
1 Y e a r
2 Yea0-62%
3 Year

Monthly
5.15%
5.15%
5.15%
5.40%
5.50%
5.55%

Qtrly

5.25%
5.25%
5.50%
5.60%
5.75%

USDAGO Annually
Pear

5.35%
5.55%
5.70%
5.85%

5.60%
5.80%
6.00%

Conclusion
At present there is no such organization which is free
from problems and challenges. Every organization has
to strive and struggle a lot to be more profitable and to
get more competitive edge.

It has been sixteen years since the establishment of


Faysal Bank, and since its establishment it has aimed to
become the leading bank of Pakistan by that providing
outstanding services to its customers. The bank has
been phenomenal growth in the past few years by the
opening more branches in the country, increasing the
deposit base, while also increasing the Assets and
profits of the bank. The services that Faysal Bank
provides have a great market penetration not only

because of their features but also the profit and markup


rates that they charge.
The bank perform many functions on daily basis and
help clients for their business transactions.

Bank perform Account opening, Activation of Dormant


Account, make Pay Orders, Demand Drafts. Provide
Credit card, Balance Transfer Facility, Personal Loan,
application of ATM Card etc.
Bank also engaged in Insurance policies for protecting
customer future. Adam Jee, Jublie, Efu Insurance these
companies are involved in insurance of customers
through bank.

Bibliography:

www.faysalbank.com