final report kasb
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ON
KASB BANKKASB BANKAbdali Road Branch, Multan
P resented B y:
Syed Mubashir Hassan Bukhari MBA(EXE) Roll no. 27
Session: 2003 – 2005
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DD EDICATED EDICATED TTO O MM YYPP ARENTSARENTS
WW HO HO AA LWAYS LWAYS CC ARE ARE MM EE
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PREFACEPREFACE
Practical work is an integral part of MBA (EXE) degree program.
The internship scheme provides hands on work experience to the
students.
I have also been assigned to do internship of eight weeks
period in KASB BANK.
With my humble knowledge and experience, I make every
possible effort to gain practical knowledge about the banking
operations in Pakistan. I have tried to my vest, no doubt, there may
be many flaws and room for improvement but clearly it shows my
own efforts, which I had done honestly to complete this report.
Syed Mubashir Hassan Bukhari
MBA (EXE)
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AcknowledgmentAcknowledgmentPerson is not perfect in all the contexts of his life. He has a limited
mind and minor thinking approaches. It is the mercy of almighty
ALLAH that shows the man light in the darkness and the person
finds his way to the light. Without mercy of ALLAH, person is
nothing but a helpless creature.
Same is the case with me, as I faces many difficulties during the
completion of this report and have been successful in fulfilling my
duty assigned to me only because of the help of ALLAH.
I feel pleasure to admire all the management of department of
BUSINESS ADMINISTRATION, BZU MULTAN for their tireless
efforts for the betterment of the students and provision of better
educational atmosphere. I am also thankful to all staff members of
KASB BANK (Multan Branch) for their help and guidance.
Syed Mubashir Hassan BukhariMBA (EXE)
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KASB
HISTORY OF BANKINGHISTORY OF BANKING
IN PAKISTANIN PAKISTANThe partition plan was announced on June 3, 1947 and
August 15, 1949 was fixed as the date on which independence
was to take effect. It was decided that the Reserve bank of India
should continue to function in the dominion of Pakistan until
September 30, 1948 due to administrative and technical difficulties
involved in immediately establishing and operating a Central Bank.
At the time of partition, total number of banks in Pakistan
were 38 with 195 offices in “PAKISTAN” but by December
31,1973. There were 14 scheduled Pakistani commercial banks
3,233 offices all over Pakistan & 74 offices in foreign countries.
The total deposits in Pakistani banks stood at Rs.880 million
whereas the advances were Rs.198 million. The Governor General
of Pakistan, Muhammad Ali Jinnah issued the order for the
establishment of State Bank of Pakistan on 1st of July 1948.
There were 14 Pakistani scheduled commercial banks
operating in the country on December 1973, the name of these
were:
1. National Bank of Pakistan
2. Habib Bank Limited
3. Habib Bank (Overseas) Limited
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KASB
4. United Bank Limited
5. Muslim Commercial Bank Limited
6. Commerce Bank Limited
7. Australia Bank Limited
8. Standard Bank Limited
9. Bank of Bahawalpur Limited
10. Premier Bank Limited
11. Pak Bank Limited
12. Lahore Commercial Bank Limited
13. Sarhad Bank Limited
14. Punjab Provincial Co-operative Bank Limited
The Pakistan Banking Council prepared banks
amalgamation schemes in 1974 for amalgamation of smaller
banks with the five bigger banks of the country. These five banks
are as under:
1. National Bank of Pakistan
2. Habib Bank Limited
3. United Bank Limited
4. Muslim Commercial Bank Limited
5. Allied Bank Limited
Nationalization of Banks was not done 1st January 1974
under the Nationalization act 1974, due to certain objectives. But it
had negative effects on efficiency of the banking sector afterwards
a privatization Commission was set up on January 22, 1991. Many
new private banks have incorporated, since then; KASB BANK is
one of the namely established private scheduled banks in
Pakistan.
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KASB
WHAT IS AWHAT IS ACOMMERCIAL BANK?COMMERCIAL BANK?
A bank is a financial institution which deals with money and
credit. It accepts deposits from individuals, firms, and companies
at a lower rate of interest and gives at a higher rate of interest to
those who apply for loan. The difference between the terms at
which it borrows and those at which it lends from the source of its
profit. A bank, thus, is a profit earning institute. Any bank that
performs this functioning is called the commercial bank.
According to Crowther:
“A bank is a firm which collects money from those who have
it spare. It lends money to those who require it.”
According to Banking Ordinance
1962:
According to Section 5(b) of Banking Ordinance 1962,
meaning of banking is as under:
“Banking company is a company which transacts the
business of banking in Pakistan, mainly of accepting, for the
purpose of lending and investments of deposits of money from the
public, repayable on demand or otherwise and withdraw able by
cheque, draft, order, or otherwise”
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KASB
Introduction to KASB BANKKASB Bank Limited was incorporated on October 13, 1994 as
Platinum Commercial Bank Limited. The name of the Bank was
subsequently changed to KASB Bank Limited on February 21,
2003, when the majority shareholding was acquired by the KASB
Group. The Bank operates through a network of 21 branches
strategically located all over the country, with another branch to be
established shortly at Karachi.
The Board consists of seven directors having diversified
experience of banking, leasing and brokerage and is chaired by
Mr. Nasir Ali Shah Bukhari. Mr. Ashraf N. Irshaduddin a seasoned
banker heads the Bank as its President & Chief Executive Officer.
The merger of Khadim Ali Shah Bukhari & Co. and KASB
Leasing Limited into the Bank increased the paid-up capital of the
Bank to Rs. 1.293 billion as on December 31, 2003 complying with
the regulatory requirements. Bank also owns a 100% stake in
KASB Securities (Pvt.) Limited and KASB Technology Services
Limited. Bank's capital base is also strong and at December 31,
2003 capital adequacy ratio stood at 15.50% against the
requirement of 8%.
In April 2004, Pakistan Credit Rating Agency (Pvt) Limited
(PACRA) had assigned medium to long-term entity rating of the
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KASB
Bank to BBB+ and short-term rating to A2 giving a ‘Positive’
outlook.
The Bank is managed by a team of professionals having a
varied experience of both domestic and international banking.
The Management has focused on restructuring, technology
and creating a market niche for its products. The Information
Technology infrastructure has been upgraded and from March
2004 branches all over the country are on-line. Further ATM
facilities shall be introduced at the main branches. Other
technology driven enhancements in pipeline are POS, E-banking
etc.
Business Process Reengineering being carried out within the
Bank is in the finalization stages, which is the first step towards
improving operational efficiency and implementation of bank-wide
Information Technology Systems in order to achieve superior
quality banking services.
The Bank offers a complete range of financial services and
the client base at large has access not only to commercial and
consumer banking services, but also to lease financing, equity &
debt securities brokerage, investment banking and investment
advice. The Bank believes in providing quality service to the
customers with personalized attention.
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HIERARCHY STRUCTURE
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PRESIDENT
SENIOR EXECTIVE VICE-PRESIDENT
EXCUTIVE VICE-PRESIDENT
SENIOR VICE PRESIDENT
VICE PRESIDENT
ASSISTANT VICE PRESIDENT
OFFICER GRADE I
OFFICER GRADE 2
OFFICER GRADE 3
JUNIOR OFFICER
PABX OPERATOR
DRIVER
PEON
BR
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DEPARTMENTS
Name of Departments Name of Incharge
Deposit Deptt. MR.SALMAN
Remittance Deptt MR.HUMAYUN.K.A.BUTT
MR MALIK KHIZAR
Foreign Exchange Deptt MR.SAMMAR RAZA
Accounts Deptt. MS.HUMERA ALTAF
Credit Deptt
Consumer Deptt
MS. SAIMA RASHEED
MR. M.SABIR KHILJI
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REMITANCEDEPTT.
DEPOSITDEPTT.
FOREIGN EXCHANGEDEPTT.
ACCOUNTSDEPTT.
CREDIT DEP
KASB
Board of Directors
Chairman
Mr. Nasir Ali Shah Bukhari
Directors
Mr. H.U. Beg
Chief Justice (Retd.) Abdul Karim Khan Kundi
Mr. Sohail Wajahat H. Siddiqui
Mr. Tariq M. Rangoonwala
Mr. Arif Ali Shah Bukhari
Mr. Naveed Hussain Shah
Management
Mr.AshrafN. Irshaduddin - President & Chief Executive Officer
Mr.Parvaiz Ahmad - Executive Vice President, Chief Operating
Officer
Mr.Shamim A.Naik - Executive Vice President, Country Risk
Manager
Mr.Muhammad Nasir Jamal - Senior Vice President, Company
Secretary and Chief Financial Officer
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KASB
KASB Bank BranchesSouthern Region
KARACHI
Main BranchBusiness & Finance Center, Ground Floor, I. I. Chundrigar Road, KarachiTel: (021) 2446005-10 / 2446772-77Fax: (021) 2446781UAN: 111 555 666
Karachi Stock Exchange Branch93-95, 2nd Floor Karachi Stock Exchange Building, Stock Exchange Road, KarachiTel: (021) 2473561-63Fax: (021) 2473564
Jodia Bazar BranchSuleman Street, Behind Lal Masjid Near Achi Qabar, KarachiTel: (021) 2400322 / 2400458 / 2434805 / 2420657Fax: (021) 2433519
Shahrah-e-Faisal Branch1/1-A, Block VI, P.E.C.H.S, Main Shahrah-e-Faisal, KarachiTel: (021) 4313236-38Fax: (021) 4538638
Gulshan-e-lqbal BranchFriends Paradise, SB – 36, Block No. 13-B, Main University Road, Gulsha-e-Iqbal, KarachiTel: (021) 4981330-31Fax: (021) 4981334
Clifton BranchPlot No. DC-4, Block No. 9, KDA Scheme No. 5, Merchant Centre, Clifton, KarachiTel: (021) 5861615 / 5878778Fax: (021) 5878779
SITE BranchSITE Commerce Park, B/9-B1, SITE, Karachi
HYDERABAD Hyderabad Branch194/29-30, Saddar Cantt, HyderabadTel: (0221) 729917-18 / 729502-03Fax: (0221) 785977UAN: 111 555 666
QUETTA
Quetta Branch2-10/29, Shahra-e-Iqbal, QuettaTel: (081) 836518 / 836948Fax: (081) 842531UAN: 111 555 666
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KASB
Northern Region
LAHORE
Lahore Stock Exchange Branch110-111, 1st Floor, Lahore Stock Exchange Building, 19, Khayaban-e-Aiwan Iqbal, LahoreTel: (042) 6367794-97Fax: (042) 6367798
Gulberg Branch76-B, E/1, Main Boulevard, Gulberg III, LahoreTel: (042) 5764288-89 / 5762146 / 5764384Fax: (042) 5755358UAN: 111 555 666
Defence Branch81-Y, Phase III, D.H.A LahoreTel: (042) 5731811Fax: (042) 5722228
Abbot Road Branch19-Abbot Road, Opp. PTV Station, LahoreTel: (042) 6305143-44Fax: (042) 6305142
Circular Road Branch77-Main Circular Road, LahoreTel: (042) 7639040-42Fax: (042) 7660694
RAWALPINDI
Rawalpindi Branch32-Saddar Road, Ferozsons Chambers, Rawalpindi CanttTel: (051) 5527841-42Fax: (051) 5527844
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ISLAMABAD
Islamabad Branch90-West Razia Sharif Plaza, Jinnah Avenue, Blue Area, IslamabadTel: (051) 2826181- 83Fax: (051) 2826184UAN: 111 555 666
PESHAWAR
Peshawar BranchAYS Centre, Arbab Road, Saddar, Peshawar CanttTel: (091) 5279432 / 5279625Fax: (091) 5279838UAN: 111 555 666
MIRPUR (Azad Kashmir)
Mirpur (A.K.) Branch629, Sector B/1, Bank Square, Nangi, Allama Iqbal Road, Mirpur (A.K.)Tel: (058610) 42841 / 44877Fax: (058610) 42742UAN: 111 555 666
MULTAN
Multan Branch76-Holiday Inn, Abdali Road, MultanTel: (061) 587701-03Fax: (061) 587705UAN: 111 555 666
FAISALABAD
Faisalabad Branch14-P, Kotwali Road, FaisalabadTel: (041) 649667-70
Fax: (041) 649672UAN: 111 555 666
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KASB
GUJRANWALA SIALKOT
Gujranwala Branch Sialkot Branch84-85, GDA Trust Plaza, G.T. Road, 2/139,Abbot Road, SialkotGujranwala Tel: (0432) 604990-92Tel: (0431) 252348 / 252358 / 254429 Fax (0432) 589044Fax: (0431) 254529 UAN: 111 555 666UAN: 111 555 666
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KASB
Account Opening DepartmentBorrowing funds from different sources has become an essential
feature of today’s business enterprises. But in the case of a bank
borrowing funds from outside parties is all more vital because the
entire banking system is based on it. The borrowed capital of a bank
is much greater than their own capital. Banks borrowing is mostly in
the form of deposits. These deposits are lent out to different parties.
Such deposit creation is done through opening an account in the
bank.
Types of Accounts
In KASB, there are the following types of accounts:
Current Account.
Saving Account.
Current Account
In current account there is no interest on it. It is for only
transaction purposes. They are paid on demand. When a banker
accepts a demand deposit, he incurs the obligation of the paying all
cheques drawn against him to the extent of the balance in the
account. As there is no profit paid on this account it is also called
checquing account because cheques can be drawn on it. Current
account is mostly opened for business.
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KASB
Saving Account
The purpose of this account is to induce the habit of saving individuals in the neighborhood. The minimum deposit for opening the account is Rs.1000/-There are three types of savings Account.
KASB Smart Savings-Classic
KASB Smart Savings-Gold
KASB Smart Savings-Corporate
KASB Smart Savings-Classic
Less than 100K 0.5%
100K to < 500K 2.50%
500k and Above 3.50%
KASB Smart Savings-Gold
Less than 1M 0.75%
1M to < 5M 3.75%
5M to < 25M 4.25%
25M and Above 4.50%
KASB Smart Savings-Corporate
Less than 100K 0.25%
100K to < 1M 1.50%
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KASB
1M to < 5M 2.50%
5M to < 10M 3.00%
10M to < 50M 3.50%
50M to < 100M 4.25%
100M & Above 5.00%
(Profit calculated on daily Average Balance).
Notice Deposits
Notice deposits are kind of fixed deposits. The minimum
balance Requirement for opening the account is Rs.5000/- and
payment is drawn on maturity of the specific period. Notice deposit is
of the two kinds:
One for which a prior notice of 07 days and above is
required from the customer before with drawing deposited
amount and for which rate of return is 3.00%
Second for which a prior notice of 30 days and above is
required from the customer before with drawing the
deposited amount and for which rate of return is 3.50%.
Term Deposits
A term deposit is a deposit that is made for a certain periods of
time. At the end of the specific period, the customer is allowed to with
draw the principle amount.
The term deposit account varies from one month to 5 years,
and the minimum balance requirement is Rs.5000/- As the PLS TDR
is in the shape of deposit receipt, no cheque-book issued.
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The amount of profit is given to deposits in three ways:
By cash
By sending a bank draft to depositors home address or
officers or whatever is specified as mailing address.
The amount is credited in any one of the checking accounts
of the depositor.
KASB Smart Term Deposits
Profit Rates for Individuals
Tenor of Deposit Annual Nominal Rates1 Month 4.50%2 Months 4.75%
3 Months 5.50%
6 Months 6.00%
9 Months 6.50%
1Year 7.25%
2 Years 7.50%
3 Years 8.25%
4 Years 8.75%
5 Years 9.25%
Profit Rates for Corporate
Annual Rate
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1-24.99M 25-49.99M 50-99.99M 100-199.99M 200M Plus
1 Month 3.50% 4.50% 5.00% 5.75% 6.00%3 Months 5.00% 5.65% 6.00% 6.65% 7.00%6 Months 6.00% 6.50% 6.75% 7.15% 7.50%
1 Year 6.50% 7.00% 7.35% 7.50% 7.75%2 Years 7.00% 7.20% 7.65% 8.00% 8.15%3 Years 7.50% 8.00% 8.50% 9.00% 9.25%
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KASB
Account Opening Procedure
For the checking accounts (C/A, SAVING), there are different
types of account holders are required for all these types of account
holders. The operation/procedure requirement that is needed for
“Individual Account” differ greatly from “Joint Account”, Proprietorship
“Partnership”, “Limited Company” and “Club Society or Association”
as explained below.
Individual’s Account
When a single man or woman opens an account in his/her own
name and has the right to operate it is called individual account.
Documentation
For literate person copy of National Identity Card is required as
a primary requirement. For illiterate person, along with the copy of
National Identity Card requirement he or she must come in person for
opening the account.
Operation
The person place a “Check Mark” in the type of account
and type of operation required.
He/she fills in part-1 of the form, a fix his/her either two or
four similar signature (or thumb expression in the signature
space and get it introduced and signed by a person who
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KASB
already has an account with the bank and write his account
number in the specific rows in a specific space.
The person fills in “next of kin” position where he/she
father, mother, husband/wife or any other relative’s name,
his/her address, phone number and affix his/her signature
to certify this requirement. This requirement is needed
because in his/her absence bank can have
correspondence with the specific person.
The person put her/his signature (or thumb expression) on
the signature specimen card (SS CARD) similar in the area
on the form. One the back of SS card mailing address,
telephone number, person to contact and introducer space
is filled in. These entire requirements are necessary for
future.
The person deposits the initial amount for opening account
on to the cash counter. The person put his signature on
form-A (check book requisition) on two places in
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KASB
“authorized signature” and fills in the “Title of Account”
space by writing his name.
Joint Account
When two or more persons, neither partners, nor trustees, open
account in their name is called joint account. Husband and wife or
two persons of same sex can open joint account.
Documentation
For joint account copy of N-I-C Card of all the persons is
obtained other things remaining same as in individuals account.
Proprietorship Account
When the owner of the firm operating singly, opens an account
in his firm name, this account is called a proprietorship account.
Documentation
For this kind of account, an application for opening the account
on the firm letter – pad (having the firm name) is required along with
the N-I-C Card of proprietor.
Partnership Account
The account is opened in the firm name and all partners
designate one or two persons to act on behalf of the partnership firm
all acts on behalf of firm. The partners in the partnership firm are
liable for the acts of the firm jointly and severely. Every partner in a
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firm has an implied authority bind his co. partners by drawing and
enclosed cheques.
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KASB
Documentation
Copy of N.I.C. Card of all partners.
Application to open the account on the firm letter pad.
Partnership deed in case registered partnership firm.
Letter showing the implied authority of one or more
partners to act on behalf of the firm.
Limited Company Account
Documentation
Memorandum of associations.
Articles of the association.
Resolution of the Board of Directors.
Certificate of incorporation.
Certificate of commencement of business.
N.I.C.s of Directors.
Letter of Thanks
At the start of the Accounts, 2nd day KASB issues letter of
thanks to “Account opener” and “Account introducer” for the trust to
have on KASB Bank.
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Other Responsibilities of Account Opening Department
Cheque-Book Issuing
Check books are issued only for chequing account such as current
account, saving account and KASB account. They are not issued for other
fixed and term deposits because of their long term accounts “nature”.
Account Closing
Account is closed on the written request of the customer KASB debits
Rs.100/- as charges for closing the customer account from that account. The
account holder with draws the amount by writing a cheque and just leaves
Rs.100/- in his account
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KASB
Procedure for Opening Other Account
1. Notice Deposit
The procedure for issuing notice deposit in KASB is as follows:
The customer comes to the bank and specifies the number
of days for which he wants to deposit hid money in notice
deposit.
The credit voucher is made for the amount of cash to be
deposited, the presence of account is not necessary.
The date of opening, the period the name of the customer,
the signature etc. is all written on the form.
The notice deposit receipt is filled accordingly. All the
requirements are carried out the signature of the customer
and the authorized officer, the stamp of the bank etc.
2. Term Deposit
Any person can open a term deposit. He needs not to have an
account in the bank. The procedure is the same as that of the notice
deposit.
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KASB
REMITTANCE DEPARTMENTThe main function of this department is transfer of funds from one
branch to another branch or one bank to another bank throughout the
country.
Instruments of Remittance Department
The instruments that are handled in the Remittance department are
as follow:
Demand Draft.
Telegraphic Transfer.
Mail Transfer.
Pay Order.
OBC.
IBC.
Issuance Procedure
The issuance procedure is same for all remittances
instruments. We are using DD to explain the Procedure. A demand
draft application is given to the customer, when he fills the relevant
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KASB
information and signs it. The officer in charge then checks the
information form.
The charges such as commission, is charged as per
effective schedule of Charges.
In case of cash deposit the cashiers counts his amounts
and sign the DD application.
Then the two authorized persons of bills and remittance
department signs it.
The entry is made in the DD issuing register.
It is given to the customer.
The vouchers and the DD form given for posting at the
remittance dept.
The DD advises be printed from the computer and mailed
to the respective branch.
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The DD credit advice is received through mail. The No’s
are checked and signatures are verified.
An entry is made on the DD payable register, and the
voucher is made.
When DD is received, the test No’s are checked, and the
payment is made, if DD is over Rs.2, 50,000. I.e. DD
payable is nil.
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KASB
Demand Draft
A demand draft is an instrument, which is drawn by one bank
upon another bank for a specific sum of money payable on demand.
It is made by the bank and given to the purchaser against cash or
cheque.
If two banks are involved, then one bank sends a DD to anther
bank. But in customer – Bank case the customer sends his DD to the
receiver.
Telegraphic Transfer/ Mail Transfer
A telegraphic transfer is a fastest and safest way to transfer
money. The message is fixed. Mail transfer is Slow than a T.T. the
transfer is through mail.
Pay Order
It is a cheque drawn by a bank on itself. Pay order is an
instrument in which three parties are involved, the purchaser, the
bank and the receiver. Any customer can purchase it. It is usually
made by govt. Bodies. A single bank is included in this case.
Outward Bills for Collection (OBC)
The bills, which are sent to, their city banks for the local
clearing in that city are called outward bills for collection.
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KASB
Inward Bills for Collection
The bills, received from other banks out of city for the local
clearing, are called inward bill for collection.
Other Functions
Balancing the Register
At the Monthly/weekly of the day, all the registers are balanced with
the computer balances. The heads and checkes are as follows.
DD payable.
TT payable.
MT payable.
OBC Collection
IBC collection
If the payables are not cleared for a lot of days, a reminder is sent to
the respective branches.
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KASB
Clearing DepartmentThere is no legal obligation on a banker to collect cheque drawn upon
other banks for a customer. However it is function of almost every
modern bank of the collection of cheque and bills on behalf of the
customer.
Clearing department services are provided in order to make
arrangements for the economic collection of the cheque, DD’s pay
and other negotiable instruments. A large part of this work is carried
on through the clearinghouse.
Clearinghouse
Clearinghouse is a place where NIFT(National Institution
Facilitation Technologies) members collect the Cheque from different
banks and exchange all means of transaction other than cash and
then settlement procedure carried out for the balancing of the SBP
accounts.
The clearance house is in the New State Bank Building Kalma-
Chowk. All the NIFT members from each bank go to the
clearinghouse for the first clearing at 9:30 and for the second clearing
at 1:30.
First Clearing
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KASB
The NIFT members take the outward cheques and go to the
clearinghouse. The outward cheques and inward cheques are given
to the respective branch. A summary is prepared and given to the
supervisor of the clearinghouse. He balances the accounts of all the
banks.
Second Clearing
After the outward cheques, they are checked and the ones to
return are to be attached with a memo. Then at 1:30, NIFT members
go for the second clearing. At this returned cheques are received.
Once again, the summery is prepared and given to the supervisor for
balancing. The supervisor balances the accounts of banks. The SBP
gives ending position to each member.
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Role of the Clearing Department
Suppose X is an account holder of KASB, and he has to pay
Rs.2, 000/- to Y who is an account holder of MCB. X draws a cheque
in favor of Y and gives it to Y. Now Y instead of coming to KASB for
payment, deposits the cheque at MCB. The NIFT members will bring
those cheques to the clearinghouse and gives it to KASB BANK. The
KASB bank checks the validity of the cheques and in the second
clearing the NIFT members, it told that his cheque has been cleared.
Updating the Clearing Stamps
The clearing stamps would be updated each morning with the
next working days dates the clearing officer. This is done because the
cheques deposited by the customers for clearing are presented to the
clearing house on the following day of receipt.
Receiving Cheques for Clearing
The depositor would be required to fill in the details of the
cheques i.e. date of deposit, title of account, account number, amount
in words and figures of the cheques being deposited, name of bank
and branch on which the cheque is drawn in the slip. In cases more
than one Cheque being deposited for clearing by the customer,
multiple entries may be made on the same Pay-in-Slip giving the total
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amount in words and figures of the cheques being deposited along
with the individual amount in figures of each cheque.
The clearing Officer shall match the details of the cheque with
details mentioned on the Pay-in-Slip and ensure that:
Cheque is not Specially Crossed to any other bank Bear
stamps of other banks, if so those banks have canceled the
same.
Cheque is not mutilated or torn
Cheque is not stale or post dated
Amount in words and figures on the cheques agree.
Cheque is payable at a bank in the city where it is being
deposited.
Any alteration / amendment / addition / on the cheque is
authenticated by the drawer.
Affixing Rubber Stamps
Following rubber stamps are fixed on the face and reverse of
the cheques received for clearing.
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On the face of a cheque – Bank’s special crossing Stamp.
On the reverse of a cheque made out to the order of our
customer or if the word bearer has been struck off –
Payee’s Account Credited Stamp.
On the reverse of a demand Draft – Disbursement
Guaranteed stamp.
On the reverse of a cheque, which can be and has been
endorsed – 1st payee’s Endorsement confirmed 2nd
Payee’s Account Credited Stamp.
On the reverse of cheque, which has been received, from
an upcountry branch for clearing – Our bank’s
Endorsement Confirmed Stamp
Book keeping
There are two registers in this department:
o Clearing summary register.
o Outward clearing register.
Clearing Summary Register
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In this register the clearing summary balance is made. The
received cheques and the delivered cheques are written in the
respective columns.
Inward Clearing Returns
There are many reasons due to which Cheques can be
returned. Some of the reasons are as follows.
Insufficient funds in the account
The drawer has stopped payment of the cheque
Full signatures of the drawer have not authenticated
Alteration and cuttings on the cheque if any
Endorsement is Irregular
Payment has been stopped by the drawer
Account has been frozen
Drawer deceased
Outward Clearing Register
The outward clearing register is used to write down the detail of
the outward cheques. Outward cheques are those cheques, which
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have been delivered to different banks. The amount of these cheques
will be debited to SBP account so these cheques are in favor of us
and have a positive effect.
Different instruction is dealt in the clearing department. All negotiable
instruments e.g.
Cheque
Pay order
Demand Draft
In order to make arrangements for the speedy and economic
collection of cheques, bills and other documents payable or
deliverable at or through offices of members of clearinghouse
clearing services are provided in all the big cities by State bank of
Pakistan.
Procedure
The branch for clearing items adopts the following procedure.
All cheques, drafts, pay orders etc. accepted for clearing shall be
stamped with clearing stamp on the face of the instruments,
customers, counterfoil and the pay in slip with date of the next
working day, say 1.11.96 because the instrument has to be presented
on 2.11.96.
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All cheques received for outwards clearing to be deposited
by the customers are accepted on the banks relevant pay-
in slip (KASB DEP FM 007/008) duly filled in by the
depositor as per printed columns of the pay-in slip.
The depositor should write the instrument number, the
name, and the branch of the bank drawn on and should
sign at the prescribed column (deposited by) for his
signature.
The pay in slip along with the instrument is passed on to
the operation manager for his signature on the pay-in-slip.
All instruments are received for outward clearing shall be
sorted bank wise.
They are posted at the computer in the next date are
received print out.
The grand totals of all schedules amount and number of
instruments must agree with the totals as per outwards
clearing register.
Clearing Position Statement
After the 1st and 2nd clearing, the clearing positioned statement is
prepared.
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A) Inwards cheques, Demand Draft, Pay orders etc.
B) Outwards Cheques, pending cheques
If amount B is greater than amount A, it means that our cash
balance at SBP has increased and so it is a favorable for bank. On
the contrary, if A is greater than and B it means that one SBP
account has decreased and here it is favorable for the bank.
CASH DEPARTMENTCash department is very sensitive and risky part of the bank. Very
cautious and competent personnel are needed for the job. KASB has
really such a diligent staff with appreciable competencies and will to
do work.
Main function of Cash department is to deal with cash payment and
cash receipts.
CHEQUE
Cheque is bill of exchange drawn on specified banker and not
expressed to be payable other wise than on demand.
The Request of a Cheque
It should be in writing
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The drawer must not put any condition for the payment of
the Cheque
Drawn on a specified banker only
Payable on demand
A certain sum of money
Payable to a specified person
Signed by the drawer
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Types of Cheque
There are three types of cheque books.
1. Receiving Cashier's Book FCY
2. Receiving Cashier's Book Pak. Rupee.
3. Paying Cashier’s Book FCY
4. Paying Cashier's Book Pak Rupee.
5. Daily cash position Book FCY
6. Daily cash position Book Pak Rupee.
The receiving cashier’s book is used to write down the details of
the incoming cash. The paying cashier’s book is used to note the
details of the outgoing cash.
The daily cash position books are used to prepare the daily
ending balance of the cash on hand. The books for foreign currency
are separate while the books for the Pakistani Rupee are separate.
Parties to a Cheque
The Drawer i.e. the customer
The Drawee i.e. the banker.
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The payee i.e. the person to whom payment is to be
made.
CASH DEPOSIT PROCEDURE
A customer comes to deposit cash in his account. The
procedure followed in the cash department in this case as follows:
The customer fills the pay -in slip. There are two types of
pay-in slips. The red slip is filled if he is a current holder.
The cashier receives the pay -in slip and cash.
He counts the cash and makes the detail of the notes at
the bank of the pay-in-slip.
Then he compares the detail with amount written on the
pay-in slip.
Signs the pay-in Slip.
Writes the entries in the Receiving cashier's book, i.e.
serial No, account type, Account Number, Cheque No
and amount.
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Puts the stamp of the Cash Received on the pay-in slip of
writes the serial number from the receiving cashbook.
The first portion i.e. the Receipt is taken and given to the
customer. While the latter portion is handed over to the
person for the entry in order to update the data.
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CASH PAYMENT PROCEDURE
When a customer comes to withdraw a certain amount from his
account, he brings a Cheque along with him. In this case, the
following steps are taken.
The cashier receives the Cheque and checks it whether it
is postdated or predated. Cheque can be cashed within
six months. A repeated Cheque cannot be cashed.
He takes two signatures at the back of the Cheque from
the bearer.
He gives the Cheque for 'posting’ at the computer. The
computer checks Out whether there is balance in the
account or not. Other instructions are also received e.g.
blocked, frozen, etc. The posting is done, the a/c is
debited and the Cheque is stamped “posted" with the
serial number and date.
The cashier counts the cash and makes the detail at the
back of the Cheque.
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The cash is paid to the person and the Cheque is
stamped “Cash Paid" immediately.
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Cancellation of Cheque
Teller prior to canceling the cheque shall invariably verify the
regularities of the cheque and style of the signature on the cheque
with the specimen on record even to the extents of spelling stokes
and dots.
The cancellation shall be done by waving a line with a red pen
across the signature of the drawer and the teller would sign in full
near the signature of the drawer. The head teller would also cancel
the cheque in a similar way.
CALCULATION OF ENDING CASH BALANCE
The official time for receiving deposits and payments is till 1:35.
However some important customers are accommodated afterwards.
The cash in hand is counted. It contains the cash at the
counter and the cash in the strong room.
Generate from the system a report of all payments and
receipt during the day.
Then opening balance is taken, i.e. the ending balance of
the previous day.
The receipts are added and The payments are deducted
Arrange currency notes according to the denomination.
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This daily cash position is written down on the daily cash
position book.
CASH MANAGEMENT
Cash management is a technique of managing cash according
to the requirements of the bank on daily basis. The operation
manager manages this aspect of cash. Every Branch has an
accountant at the State bank Of Pakistan. A 5% of the total deposits
have to be maintaining so there are two main sources of the cash.
o State Bank of Pakistan.
o Head Office.
LIQUIDITY MAINTENANCE
KASB has to maintain 35% liquidity at SBP. Every branch maintains
5% of its deposits at the local SBP. But this 30% is kept in the form of
Approved securities, e.g. Foreign Investment Bills and Treasury
Bills.
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Foreign Exchange DepartmentThe FOREX department works effectively with an extensive
correspondent network. It deals with import and export sections as
well.
Import Section
In case of import, first a L/C is opened in the bank on behalf of
importer. Importer submits a request for opening a L/C and prepares
an application form. The importer seeking to open a L/C must be
registered with Export Promotion Bureau, it is the basic requirement.
A documentary LETTER OF CREDIT can be defined as:
“A conditional guarantee given by a bank to named beneficiary (seller
of goods), to make payment for the goods dispatched by him to the
buyer, against presentation of the called for documents and
compliance with all other terms and conditions of the credit”.
Parties to a Letter of Credit
Maximum four parties can be involved in letter of credit.
1. Account Party: The buyer or the importer on whose account
and request the letter of credit is opened is known as account
party or opener.
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2. Issuing Bank: The bank which issues or opens a letter of
credit at the request of importer is called issuing bank.
3. Exporter or Seller: The seller or the party in whose favor L/C
is drawn is the exporter. He is also called beneficiary.
4. Negotiating Bank: The paying bank in the exporter’s country
on which the draft is drawn, is called negotiating bank or paying
bank.
Procedure for Opening Letter Of Credit
General Consideration
Letters of credit are normally opened against prior
sanctioned limits. However, where prior sanctioned limit is
not available, the branch first submits a CLP to the
competent authority.
Appropriate margin against letter of credit as prescribed in
the LC limit is recovered prior to opening of letter of credit.
Where the amount of credit is Rs.5000000/- or above,
credit report of the beneficiary is also obtained before
establishing the letter of credit. The charges of this report
are recovered from importer.
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LC Application
The importer on the bank’s standard form KASB FE 201
makes application.
In case of guarantee, the guarantor signs the clause
printed at the foot of the form on the reverse.
The signature of both the applicant and guarantor are
verified. The application form should bear special adhesive
stamp of appropriate value.
The importer himself should fill the application.
Details of every LC opened must be recorded in the
Category Post Book.
How to Establish a Letter of Credit?
Branches authorized to deal in foreign exchange can only open
documentary Letter of Credit. The branches, which are not authorized
to deal in foreign exchange, submit their customer’s application for
opening letter of credit duly completed and signed in all respect along
with all other documents to the nearest authorized branch.
After completion of the above formalities the opening should
proceed further as under:
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Foreign currency amount is converted into Pak Rupee, at
TT/OD selling rate.
The names of advising and reimbursing banks are from the
International Division.
Margin, commission, postage and cable/telex charges (if
LC is being opened by cable/telex) are calculated. If the LC
is being opened on behalf of an authorized branch it is
ensured that margin as prescribed by SBP/Head Office has
been fully recovered, where as the commission on LCs of
unauthorized branches is shared equally by the opening
branch and the forwarding branch.
Full particulars of the LC recorded in the LC opening
register.
Separate folio is allotted for each customer in this register
and necessary entries for LC liability and margin are
recorded at the time of opening of LC.
Vouchers are passed on the same day.
Export Section
Export is another section of Foreign Exchange Department. It
too generates income to the bank as well as the country. In KASB
Multan, three persons operate it.
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Under the registration (import and export) order 1952 no person can
export any commodity from Pakistan unless he is duly registered as
an exporter with the Export Promotion Bureau. Bank should ensure
that the exporter is registered with WPB before certifying any export
Form-E for him. The registration number should be quoted on the
relative export form.
Export is not being made in this bank since 2001.
CREDIT DEPARTMENTThe earning of a commercial bank is chiefly derived from interest
charge on loans and discounts, it is there necessary to consider the
position of a banker with regard to loan advances. The profitable uses
which banker with regard and advances. The profitable uses, which
bankers in the country make of their funds, may be classified as
follows.
Call loans and repayable at short notice.
Investment in Government and other stock exchange
securities.
Purchase and discounting of bills.
Loans and advances.
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The credit facilities extended by the bank are classified as:
Funds Based
Non-Funded
Funds Based Credit Facilities
If bank provides cash financing to the customer, it is called as
funds based credit facility. KASB provides numerous types of funds
based facilities to its customers. A few of them are mentioned below.
1. Cash finance
2. Running finance
3. Term finance
4. Finance against packing credit
5. Finance against imported merchandise
6. Finance against trust receipt
Cash Finance
Cash finance is offered against the hypothecation or pledge
of the moveable property/stock of the borrower. In majority of the
cases, this finance is allowed against the pledge of stock (cash
crops). Cash crops in Pakistan are considered as the following:
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Wheat
Rice
Cotton
The person who wants to take the finance against any of
these cash crops has to give the full details of the crops. A bank
representative has to give duty on the go-down. The keys of the
Go down are kept with the bank’s representative. He informs
about any movement in the goods from there and keeps full
record of every thing offered as the security. The goods, which
are offered as pledge, should have higher value than that of loan.
It can be 10%, 15%, 25% or any other value above the amount
of loan. After full satisfaction the amount of the loan is credited to
the customer’s account. It is special finance account that is
credited and the borrower utilizes it for business purpose. A
separate cheque-book is issued for this purpose.
Running Finance
This type of finance is termed as running finance because
money goes on coming and going from the account. The
customer withdraws the money for his use and deposits in the
account if he has some excess money. For providing of such
finance a current account of the borrower is opened. The conduct
of this account is kept under observation for a period of three to
six months depending upon the customer. If the borrower has
account in some other bank, the bank statement of that bank is
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also observed. If the turnover of the account is satisfactory, the
customer is provided the loan.
The amount of the loan is credited in his account. The
borrower can with draw the amount from his account with the
cheques. It is allowed to the borrower under a pre-sanctioned
limit. The borrower can withdraw maximally up to the pre-
sanctioned limit. The amount outstanding against the borrower is
shown as debit in the account for a partial amount. The mark-up
is charged on the daily product basis of the amount out standing.
The customer pays the interest only for the amount he has
utilized. In case a running finance account is fully adjusted before
the expiry of the stipulated period, the limit will have to be got
renewed if a letter of continuity is not obtained from the borrower
at the time of sanction.
Finance Against Packing Credit
Such finance is allowed to exporters for packing the
goods to be exported. Such credit is ordinarily granted after
evidence of letter of credit or firm contract in favor of borrower.
The loan is advanced against the security of inventory purchased
by the borrower. It is important that the customer execute
hypothecation agreement with respect to such inventory.
Additional security is also taken depending upon the risk
element. Finance provided against packing credit from bank own
sources but not covered under any of SBP Refinance Scheme is
reported here.
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Finance Against Packing Credit (Part 1):
This facility is granted under part 1 of export Re-finance
Scheme introduced by the State Bank of Pakistan and is allowed
against firm contract or irrevocable letter of credit either opened
in favor of KASB or open transferable letter of credit. Other
characteristics of this advance are same as in above case.
Finance Against Packing Credit (Part 2):
This finance is allowed to the exporters against their past
performance. The advance allowed to the exporter under this
scheme is got reimbursed from the SBP. The SBP keeps the
disbursed amount in an account called ‘Special Account’. No
withdrawal is allowed in the Special Deposit Account and the
amount is released after 180 days. Interest at the rate of treasury
bills is paid on special deposit account.
Finance against Trust Receipts
Documents of title of goods imported through the letter of
credit are handed over to the customer against a trust receipt to
be signed by the latter signifying that the customer holds the
goods in trust of the bank. The objective being that the customer
discharges the loan from the sale proceeds of the Goods.
Finance against Imported Merchandise
Its name depicts that this type of loan is allowed to the
importers to finance their needs for meeting the cost including
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freight, insurance, and customs and excise duty payable on the
imported merchandise. The imported goods are mostly pledged
or hypothecated (rarely) by the lending bank’s finance and
charges either fully or partially, on production of the delivery
order issued by the banker in favor of the borrower. The delivery
order is addressed to the Go down Officer who is in charge of the
imported goods pledged.
Contingent Non Fund Based Facilities
In such type of facilities the bank provides only guarantee
to the third party on behalf of its customers.
Types of Non-funded Credit Facilities
1. Letter of Credit
2. Letter of Guarantee
Letter of Credit
Letter of credit is type of non-funded facility. The bank
only issues the letter in favor of its customer in case of import
and exports. Four parties are involved in this system, Importer,
Exporter, and Importer’s Bank, Exporter’s Bank.
It can broadly be categorized into two categories;
1. Sight Letter of Credit
2. Usance Letter of Credit
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Sight Letter of Credit
This a secured type of LC. In this type of credit the bank
has to pay at the sight. The bank pays at the day, the shipment is
arrived & documents are presented in the bank. When the goods
are received, the bank takes these into its custody. These are not
released until customer does not make the payment.
Usance Letter of Credit
This is also a type of LC, but the bank is not as secured in
this case as in sight LC. The payment is not done immediately
after receiving the documents. Goods are also not taken in the
bank’s custody. The customer has only to show the documents
of his goods that he has received. In Usance, Letter of Credit the
payment is to be done on some pre-specified time. The purpose
of this LC is that the customer makes payment after selling those
Goods in some time period. This time period should not be more
than 180 days.
This LC is an agreement that if the importer will not pay
than the bank will have to pay instead of him after the specified
time limit. If he does not pay, the customer is called defaulter
from the day after the time limit has expired. And his property is
taken under the bank’s custody.
Letter of Guarantee
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Grantees issued by the bank are classified under two broad categories.
A) Financial guarantee, where the bank guarantees the
fulfillment of a financial commitment on behalf of customer and
B) Performance guarantees, where the bank guarantees the
performance of a contract or other work as specified in the
guarantee. These categories can be further subdivided into the
following types of guarantees.
1) Financial guarantees
Bid bonds, which are issued in lien of deposit of earnest
money while bidding for a tender. Under these guarantees the
bank is called upon to pay in the event of a breach of terms on
the part of customer.
2) Performance guarantees
Under these guarantees, the bank guarantees due fulfillment of
a contract undertaken by the customer. The amount of the
guarantee is usually up to the extent of the value of the contract.
3) Shipping guarantees
Under which the bank issues guarantees in favor of the shipping
company to enable the importer to obtain delivery of the goods
without production of the bill of Lading.
TYPE OF SECURITIES
Primary Securities
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Secondary/Collateral Securities
Primary Securities
Pledge is a formal contract of security whereby the goods/documents
are deposited with the creditor or lender on condition that they are
redelivered to the depositor if the debt is repaid or can be sold if the
borrower defaults. In this case, the lender has the right to retain the
goods/document till the debt is paid.
Hypothecation the goods are kept as security with the Bank but
neither the ownership nor the possession is passed to the creditor.
The ownership or possession of the goods remains with the borrower;
however in case of defaults the Bank can take possession of the
goods.
Lien (Moveable property possessed to the lender cannot be sold in
case of default).Lien is the banker’s right to hold the property until the
claim on the property is paid. The bankers look at their lien as a
protection against loss on loan or overdraft or any other credit facility.
In ordinary lien, the borrower remains the owner if the property, but
the actual or constructive possession remains with the creditors,
though he has no right to sell it.
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Charge When immovable property of one person is made a security
for the payment of another person, and the transaction does not
amount to a mortgage, the latter person is said to have a Charge on
the property.
Secondary Securities
Mortgage is the transfer of an interest in specific immovable property
by the borrower (mortgager) to the lender (mortgage) as security for
the payment of debt.
Personal Guarantee When an application for an advance can offer
any tangible security, the banker may rely on personal guarantees to
protect himself against loss on advances or overdraft to the applicant.
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Working of the Credit DepartmentCREDIT PROCESS There are Eight steps involved in the credit Process. First 4 Steps are
relevant to the Credit Marketing and remaining are with the Credit
Administration of the Department.
1. Customer Account is must for the Credit
2. Formal Loan/ Credit Facility Request
3. Verification and collection of basic information of the
Borrower/Business.
4. Preparation of Credit Proposal
5. Approval from Credit committee.
6. Facility Offering
7. Acceptance of facility offered
8. Security perfection.
CREDIT MONITORINGThe client can present his own account insurance policy as security for credit. When he presents his own account as security, his account is blocked for the same amount, which the bank is granting him. When the facility is adjusted at that time, the blocking is released from the account. Clients can also use third party’s account for getting credit. Shares can also be kept as security in this case these are verified and duly signed. These are kept separate to avoid theft. The company whose shares are used is informed that its shares are in the custody of the bank.
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Consumer DepartmentKASB Bank allows financing to salaried persons, self-employed
professionals and businessmen for meeting their personal, family and
household needs through convenient payment schemes to suit their
budgets. KASB Bank offers the following schemes:
KASB Shandar Car Financing
KASB Shandar Consumer Financing
KASB Shandar Personal Financing
KASB Shandar Home Financing
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KASB
Documents You Need To Provide:
Following Documents are required for Car, Consumer and Personal
Financing.
Copy of National Identity Card
Two passport size photographs
Paid Copies of utility bills
Employment certificate (For Salaried Persons)
Financial statement, company profile and copy of tax return
(For business and self employed professionals)
Bank statement for last three months
You Can Apply If You Are:
A permanent resident of the city where KASB Bank has a
branch.
In possession of a National Identity Card.
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Between the age of 21 to 60 years (for Consumer Finance)
and 21 to 55(For Car, personal and home Finance).
In business or continuously employed in a permanent
position for 2 years (For Car, Consumer and personal
finance) and 3 years or more (For Home Finance).
Having minimum take home income or salary of Rs. 20,000
per month (for Home & Car Finance) and 10,000 per month
(for Consumer & Personal Finance). (Income of your
spouse may be combined with your income to determine
the repayment capacity.)
Maintaining a bank account with any bank.
KASB Shandar Car Financing
KASB Shandar Car Financing is the easiest means which
enables you to get a new vehicle of your choice, suitable for your
business and personal needs. Avail maximum advantages through
convenient payment installments to suit your budget.
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Salient Features:
Financing up to Rs. 1,200,000/-
Financing period from 36 months to 60 months
Comprehensive insurance from reputable insurance
company
Most economical monthly installment
Simple documentation and quick approval
KASB Shandar Consumer Financing
You can now purchase electronic and household appliances of
your choice through KASB Bank's Shandar Consumer Financing
Scheme. Gain maximum advantages through our tailor made product
for your convenience.
Salient Features:
Simple documentation.
Quick approval
Flexible repayment period from 6 months to 24 months.
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Economical installments to suit your budget.
No processing fee.
Free Credit Insurance Cover.
KASB Shandar Personal Financing
You may require funds for your emergent financial needs for
meeting educational expenses, marriage or traveling expenses
through KASB Shandar Personal Loan Scheme. You can avail the
facility and can pay back within 24 months in affordable monthly
installments.
Salient Features:
Financing from Rs. 20,000/- to Rs. 100,000/-
Financing period from 06 months to 24 months
Free credit protection cover
Most economical monthly installments
Simple documentation and quick approval
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KASB
KASB Shandar Home Financing
Buying or constructing a home is likely to be the biggest
financial investment of your life! KASB Bank Shandar Home
Financing Scheme is the easiest means which enables you to buy,
build or renovate a bungalow, a townhouse or an apartment of your
choice, suitable for you and your family needs.
The facility is available at an affordable cost and convenient payment
terms with the flexibility to match the individual's need and cash flow.
Salient Features:
Facility available for purchase, construction or renovation of
your home.
Financing up to 70% of the cost of the house or an
apartment or up to Rs. 7.5 million, whichever is lower.
Repayment period from 3 years to 15 years.
Facility available at fixed or variable rates.
Most economical monthly installments to suit your budget.
Flexibility to pay off some or the entire mortgage at
anytime, without any additional cost to the borrower.
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Insurance of the borrower and the property during the
period of financing will protect the investment from
uncertainties.
Documents You Need To Provide:
Copy of National Identity Card.
Two recent passport size photographs.
Financial statements, company profile, copies of tax return
and wealth statement for the last 2 years (for businessmen
and self employed professionals).
Employment certificate (for salaried persons)
Photocopies of title documents of the property to be
purchased, constructed or to be renovated.
Bank Statements for last 6 months.
Copies of last paid bills for telephone, gas and electricity.
Copies of credit card bills for last three months.
Leasing
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KASB
KASB Bank provides medium to long-term lease facilities to
industrial, commercial and service organizations for expansion,
balancing, modernization and replacement of existing facilities for:
Industrial plants / machinery and equipments
Construction / agricultural machinery and equipments
Private and commercial vehicles
Medical, office and communication equipments
Leasing is beneficial for the following reasons:
Leasing frees working capital for more productive use
Leasing arrangement is simple to negotiate and administer
Leasing provides off balance sheet funding
Lease rentals can be structured to accommodate the
operational cash flow pattern of the lessee
Most expenses associated with the leased equipment can
be incorporated in the lease and amortized over the lease
period
Leasing provides hedging against inflation
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KASB
KASB Bank provides customized lease financing options on
most competitive terms to suit the business needs of the lessee.
Lease rentals can be uniform or structured and fixed according to the
project requirements of the lessee. Our strength lies in quick
completion of transactions.
Our financing schemes are easy to understand and without any
hidden costs. Our staff is professional and extremely customer
friendly.
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KASB
RECOMMENDATIONSFrom the quantum of the profit and its financial data, it can easily be
judged that after acquisition of KASB BANK by the KASB Group,
the Bank is not performing well. Its deposits are not growing day-by-
day and so its profitability. The controlling body is responsible for the
productive performance of the bank.
Following are my observations and suggestion to improve the
efficiency for the development of the bank
1-Marketing Efforts
Bank must let potential customers know that all attractions for
banking exist. This is done by advertising on television/ T.V. cable
and obtaining press coverage, in conjunction with direct mail, window
displays, leaflet in branches and in appropriate other locations (such
as hotels, shops, etc.) and including leaflets in statement of accounts
sent to existing customers in the hope that they will tell potential
customers about the services provided by our bank.
2-Flexible Account Policy
There should be flexible account opening policy in which the
account can be opened according to the customer willing-ness.
3-Reasonable Services Charges
There should be competitive services charges to preserve
maximum deposits.
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KASB
4-Customer Service
There should be a separate customer service department in
every branch.
5-New Consumer Products
Some personal sector customers prefer not to come to branch.
They increasingly want to deal with the bank in other ways, such as
home banking or use of Automated Teller Machines (ATMs), which
need to be at the branch or some important shopping places. One
way to retain the personal sector customers is to offer a wide range of
services such as tax advice, free life insurance equivalent to amount
Deposited, shares portfolio management, fund management facility,
etc. complimentary to the core services. Banks must have a slightly
different mix of services and mean of providing these such that
customers can choose the mix that suits them best.
6-Advance Criteria
The advance should be on merit basis and there should be also new
loaning modes as per demand and market trend.
7-Behavior Modification of Staff
Arguably, there has been a little encouragement from banks to
persuade people to open a bank account. Opening hours are
restricted, and there is a commonly held belief that banks operate for
their convenience and not for the convenience of the customers. So
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KASB
there should be proper reward criteria to the bank branches about the
maximum deposits.
8-Hiring of Talented Staff
KASB BANK should hire talented staff for improving the performance.
9-Proper Management of Banking Hours
There should be proper banking time management.
10-Change the Nature of Work
Most of the bank employees are sticking to one seat only with the
result that they become master of one particular job and loose their
grip on other banking operation. In my opinion all the employees
should have regular job experience all out-look towards banking.
Their promotion policy should be adjusted accordingly.
12-Refresher Courses
Refresher courses for the staff are most important in any international
organization. All the employees should have these courses according
to their requirement. Foreign experts can also be called for this
purpose.
13-Incentive to Employees
Bank should give some more incentive to its employees in order to
remove the conflict between lower and higher officers and should try
to improve the working condition of the bank. Such system should be
designed that every employee who has some problems with his
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KASB
officers can communicate to the higher management and some steps
must be taken to improve that so that the employee may retaliate with
bank for longer time.
14-Reward and Punishment
It is human nature one goes behind reward and incentives while and
try to avoid from punishment. Like wise in commercial institution like
bank, this system should be introduced with full force means achieve
smart, educated skilled, self spoken and well versed staff personal,
should be reward and appreciated, while on the other hand lazy,
lethargic, heard, rough-dealers and ill mannered must be warned
penalized and punished but this all should be on merit and
considering the policy of honesty is the best policy and not due to
some personal liking, disliking prejudice. It is therefore suggested
certain schemes and checks may be introduced in banks to increase
efficiency through reward and punishment system.
15 Survival Of The Fittest
It is not nearly a sentence or idiom “Right Man for the Right Job”
according to his qualification, profession skills and experience with
the job specification must be considered while posting and placing
the employees.
It should not be like that a person who may be a very good worker but
possessing lack of managerial capabilities should be posted as
manager. But as second place in command or some heavy working
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department wished persons together with managerial qualities and
manners in the same fashion should be posted and placed as
manager.
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