Banking Module 1:

Intro: Faysal Bank Limited is a Pakistani Islamic and commercial bank, based in Karachi. It is a subsidiary
of a Bahraini Bank known as Ithmaar Bank. This bank provides a diverse range of shariah compliant
products and services. It has maintained its overseas presence by its main subsidiary: Faysal Bank
Limited. The stocks of Faysal Bank are registered in Karachi, Lahore, and Islamabad Stock Exchanges. The
bank serves its customers in commercial, consumer, corporate and Islamic banking activities. It has been
rated by Pakistan Credit Rating Agency Limited (PACRA) and JCR-VIS as “AA” in long-term rating and
“A1+” in short term rating. Faysal bank has expanded over the country and holds around its branches in
200 cities with over 550 branches; including Islamic branches. It has 414 Islamic branches and 141
conventional branches. It is reported to have assets more than 601.974 billion Rupees. This has led them
to make their place in the top ten banks of Pakistan.

History: Faysal Bank came into existence on 3 rd October, 1994. It was registered as a Public Company
under the Companies Ordinance of Pakistan, 1984. In June 2010, Royal Bank of Scotland sold its
operations of Pakistan to Faysal Bank for 34 million Pounds. Later in 2014, Faysal Bank announced to
convert itself into a full-fledge Islamic Bank within 3 to 5 years. Faysal bank emerged with the
competent backing of highly qualified leadership aiming to achieve professional excellence. Faysal Bank
launched its first Islamic branch in August 2009. After 10 years, Faysal bank became the largest Islamic
branch network of a conventional bank in Pakistan with more than 400 plus Islamic Branches.

Departments:

There are many departments in different bank, however, each bank follows a different organizational
structure. Faysal bank also follows departmentalization in different ways from others. Below are the
departments that are present to deal with the customers.

1) Corporate: Faysal bank tends to build meaningful relationships with its customers. The financial
advisers and financiers help in developing these relationships. There are many facilities which
are designed to meet the need of each customer. These include:
a) Corporate Financing: In corporate financing the financial advisors play their role in building
successful relationships with the customers.
b) Financial Institutions: Faysal banks Financial Institutions is focused on developing
relationships with customers by having strong relations with the global financial institutions.
This allows their customers to go through import/export procedures easily. This also helps
the customers in acquiring letters of credit, foreign and local currency trade bills,
guarantees, import & export loans and Export Refinance. Their onshore specialized trade
services include the supply chains for their corporate customer bae, including vendor/
supplier and distributor focused structured trade financing solutions.
c) Investment Banking: Faysal Bank Limited maintains one of the leading Investment Banking
(IB) outfits in the country. During the last decade, FBL’s team of IB professionals and product
specialists have structured and successfully concluded numerous innovative and large ticket
transactions which is a testament of our continued commitment to our customers and
contribution to the development of the financial and capital markets of Pakistan. FBL’s
 Investment Banking team comprises of the following units: Project and Structured Finance
(PSF), Syndications & Debt Capital Markets (DCM) and Equity & Advisory (E&A).
d) Trade Financing: Faysal Bank has established a strong presence globally in Trade Financing
through its network, affiliates and correspondents. The Bank has conveniently maintained
relationships with major banks in the international financial market and continues to
develop new ones wherever needed. Their Trade Finance services include a full range of
import, export and guarantee products, thus offering tailor-made solution to fit the
individual need of each customer.

2) Cash Management: FBL offers full range of Cash Management / Transaction Banking services
aimed at enhancing clients’ liquidity position, reducing operational cost and improving financial
control via accurate and timely reporting. Their success is primarily attributed to customized
solution offerings, team expertise and technology-based product strategy. Below are the
collection solutions used by the bank.

a) OTC collections: All cleared funds received at the branches automatically sweep into collection
account for onward credit to main designated account, backed by comprehensive MIS and
support unit to ensure quick processing and attend queries on priority.

b) Cash/ Cheque Pick-Up and Delivery: In conjunction with leading CIT (cash in transit) companies
and courier services in Pakistan, they successfully process cash pickup / delivery requests from
client’s location(s), as per requirements.

c) Right Issue/ IPO/ Bonus Shares Tax Collections: Their entire branch network spread across 100+
cities nationwide are tagged for the collection of Right Shares/IPO application and Bonus Shares
Tax collections. Funds received are credited in the designated account of client.

d) E-IPO processing: This initiative launched in collaboration with CDC and 1Link is a state-of-the-
art facility which uses their Internet Banking/Mobile and ATM platform to provide their
customers convenience to apply for Equity/Share applications through these channels without
standing in queues at branches and without any restriction of banking hours.

e) Phone banking (IVR): Their Phone Banking agents are available to facilitate clients for routing
their distributor/ franchisee collection, maintaining accounts with the Bank, and any other
related query.

f) Standing Instruction via Debit Authority (SIDA): This product allows their distributors/dealers to
issue one time Standing Instructions to FBL, authorizing FBL to debit their account with
designated FBL branch(s), whenever stocks/goods are released and invoices are raised by them.
g) E-collections: They provide e-collection via ADC channels, such as Internet Banking, Mobile
Banking and ATMs. It allows quick and easy receipt of funds, eco-friendly due to paperless
receivables, immediate transfer – no more waiting from 48-72 hours from other banks, real time
feature means always aware of position of funds.

3) Commercial And SME: Faysal Bank serve’s the Business Banking needs. It offers a complete set
of solution to their customers, keeping in view their motto of ‘Right Product for the Right
Purpose’. Whether they are a Sole Proprietor starting their business, or a small business looking
to grow, Faysal Bank understands business in a competitive, changing environment and has
introduced various lending and deposit products to cater to the needs of its Business customers.

4) Agri: The aim of this department is to cater to the agricultural sector and assist the farmers to
improve yield and methods of farming for a bountiful crop. FBL offers specialized agricultural
financing solutions that are timely and affordable.

5) Treasury: Faysal Bank Treasury strives to broaden its product offering to better facilitate its
customers and cater to their ever-changing needs in order to reach their goal of becoming a
solution provider of choice. Faysal Bank Treasury has carved out a niche for itself as a dominant
participant in the Financial Markets. The focus of their Treasury Department is predominantly
client centric where they use extensive experience and expertise in providing balance sheet
solutions to their vast and diverse client base by offering a wide range of Fixed Income
(Sovereign as well as Corporate) and Foreign Exchange products. Faysal Bank also takes pride in
providing the first of its kind online trading platform “Faysal – Self invest” wherein their Faysal
Digibank customers have the opportunity to manage their own Government of Pakistan
Securities portfolio with Faysal Bank. Faysal – Self Invest enables customers to experience end to
end process of Investors Portfolio Securities services from IPS account opening to transacting in
Government Securities on real time basis.

 Capital of Faysal Bank: The paid-up capital of the Bank for the year ended December 31, 2019
stood at Rs 15.176 billion In 2018 it was Rs 15.176 billion

 Deposits of Faysal bank:

1. Deposits in 2015 Rs. 291,945 (Rupees in million)
2. Deposits in 2016 Rs. 339,633 (Rupees in million)
3. Deposits in 2017 Rs. 371,624 (Rupees in million)
4. Deposits in 2018 Rs. 409,384 (Rupees in million)
5. Deposits in 2019 Rs. 457,789 (Rupees in million)
 Organizational Chart
 Branches of Faysal bank: Faysal bank has 414 Islamic branches and 141 conventional branches.