internship report on the first women bank ltd

An Interpretation of…!

DEDICATED

TO

MY PARENTS

WHOSE LOVE, AFFECTION AND PRAYERS HAVE BEEN A SOURSE

OF INSPIRATION AND ENCOURAGEMENT FOR ME

An Interpretation of First Women Bank Ltd. by Huma Asad

<i>

PREFACE

This internship report is specially meant for the students of BS Economics. It is concerned to a

brief study of operation, functions, tasks and services of the First Women Bank Limited.

Banking play very important role in the commerce and economic development o f any country.

Now-a-days banks are using different modern technologies which influence the managerial

activities that are why I decided to do my internship training in the bank.

In preparation of this report I have tried my best to provide all possible information about the

operation, functions, task and the corporate information of the Bank Alfalah Limited in brief and

comprehensive way.

This internship ends with some recommendations after identification of problems that I observed

during the course of my internship training.

<ii>

ACKNOWLEDGEMENT

If oceans turns into ink and all wood become pens, even then, the praise of ALMIGHTY ALLAH

cannot be expressed set my unfeigned and meek thanks before Him, Who created the universe and bestowed the mankind with knowledge and wisdom to search for its secrets, favored and invigorated me with the fortitude and capability to apply complete my research work, and

contribute a drop to the existing ocean of scientific knowledge.

Trembling lips and wet eyes for prophet HAZRAT MUHAMMAD (SAW) who is forever a torch of guidance for the entire humanity

<ii>

Table of Contents

Chapter

No:

Chapter Name

Page No:

1 INTRODUCTION TO THE BANKIG IN PAKISTAN 1 – 4

1.1 History of Banking in Pakistan 1

1.2 Years of Establishment of Main Banks in Pakistan 3

1.3 The Role of Banking in Economic Development of Pakistan 4

2 THE FIRST WOMEN BANK LIMITED 5 – 13

2.1 History 5

2.2 Unique Character 9

2.3 Credit Policy 10

2.4 Vision & Mission 10

2.5 Board of Directors 11

2.6 Awards & Achievements 12

2.7 Future Plans 13

3 SERVICES & PRODUCTS OF THE FIRST WOMEN BANK LIMITED 14 – 24

3.1 Services 14

3.2 Liability Products 16

3.3 Assets Products 17

4 THE FIRST WOMEN BANK LIMITED, SARGODHA BRANCH 25 - 42

4.1 Basic Info 25

4.2 Hierarchy 26

4.3 Introduction of the Branch 26

4.4 Financial Highlights – FWBL Sargodha Branch 27

4.5 Range of financial products and services 27

4.6 Work Performed at FWBL Sargodha Branch 28

4.7 SWOT Analysis 39

4.8 Conclusion 41

An Interpretation of First Women Bank Ltd. by Ali Raza Sahni

World’s Only Bank for Women

To be the lead Bank for Women…!

Dynamic, adaptive & responsive to their special economic

needs, offering the best financial services and the best banking practices

Chapter 1 The First Women Bank Ltd.

1

Chapter 1

INTRODUCTION TO THE BANKIG

IN PAKISTAN

Banking in fact is primitive as human society,

for ever since man came to realize the importance of

money as a medium of exchange the necessity of a controlling or regulating agency or institution

was naturally felt. Perhaps that was the Babylonians who developed banking system as early as

2000 BC. It is evident that the temples of Babylon were used as „Banks‟ because of the prevalent

respect and confidence in the clergy.

“Banks do business of money. Rather banks do business of lending and borrowing loans”

(Professor Reynolds)

1.1 History of Banking in Pakistan

At the time of independence, there were 631 offices of scheduled banks in Pakistan, of

which 487 were located in West Pakistan alone. As a new country without resources it was very

difficult for Pakistan to run its own banking system immediately. Consequently, the expert

committee recommended that the Reserve Bank of India should continue to function in Pakistan

until 30th September 1948, so that problems of time and demand liability, coinage currenc ies,

exchange etc. may be settled between India and Pakistan. The non-Muslims started transferring

their funds and accounts to India.


2

By the end of June 1948 the number of officers of scheduled banks in Pakistan declined

from 631 to 225. There were 19 foreign banks with the status of small branch offices that were

engaged solely in export of crop from Pakistan, while there were only two Pakistani institutions,

Habib Bank of Pakistan and the Australian Bank. The customers of the bank are not satisfied with

the uncertain condition of banking. Similarly the Reserve Bank of India was not in the favor of

Govt. of Pakistan. The Govt. of Pakistan decided to establish a full- fledge central bank.

As a result the Governor-general of Pakistan Quaid-i-Azam inaugurated the State Bank of

Pakistan on July 1, 1948. Thus a landmark was made in the history of banking when the state bank

of Pakistan assumed full control of banking and currency in Pakistan. The banking structure in

Pakistan comprises of the following types:

State Bank of Pakistan

Commercial Bank of Pakistan

Saving banks.

Cooperative banks

Specialized credit institutions

Commercial banks have been the most effective mobilizes of savings and have been

providing short-term requirements of working capitals to trade, commerce and industry.

Up to December 31, 1973, there were 14 Pakistan commercial banks that functioned all

over the country and in some foreign countries through a network of branches. All these

commercial banks were nationalized in January 1, 1974.


3

The Government of Pakistan in the late 90‟s introducing the need for the privatization of

state owned banks and companies. The private sector has accepted the challenge and most of the

banks are privatized today. The State Bank of Pakistan issues the shares of these periodically.

Bank employees and other common peoples can also purchase these shares and earn profit.

Throughout the period of banking history the banks have been expanding rapidly and achieved the

desired goal of progress.

1.2 Years of Establishment of Main Banks in Pakistan

Sr. No. Name of the Bank Year of Establishment

1 Habib Bank limited 1941

2 Allied Bank Limited 1942

3 Muslim Commercial Bank 1947

4 National Bank of Pakistan 1949

5 United Bank Limited 1959

6 The First Women Bank Limited 1989

7 The Bank of Punjab 1989

8 Askari Bank Limited 1991

9 Bank Alfalah Limited 1992

10 Standard Chartered Bank Limited 2006


4

1.3 The Role of Banking in Economic Development of Pakistan

Banking system plays very important role for the progress of economy of every country.

With the progress of science and technology, the banking system has also been changed. As every

aspect of our material life is directly related with Economy, Industry, Agriculture and Politics.

Business is not out of the effects of modern banking system now. A sound and organized banking

system provide bright and strong base to national and international economic system. The health of

the economy is closely related to the soundness of its banking system. Though bank creates no new

wealth but its borrowing, lending and related activities facilitate the process of production,

distribution, exchange and consumption of wealth.

In other words, we may say that bank becomes very effective pipeline in the process of the

economic development of the country. Bank is just like a heart in the economic structure and the

capital provided by it is just like blood in it. If there would be no bank, then a big portion of a

country‟s capital would remain the idle. The loan facilities provided to the producer by the banks

work as an incentive to increase the production.

Bank plays a vital role to encourage the masses to deposit their funds with the bank. In the

developing economy where the formation of capital is a difficult problem, they play very impor tant

role to tell government securities or bonds to manage capital for the government to keep up their

operation for the benefits of the nation.

Bank also solves many difficulties in the international payments and the vo lume of the

transactions has been increased. Now banks not only extend short term loans to the farmers,

traders, industrialists etc. but also invest in a wide variety of long term earning assets.


5

Chapter 02

THE FIRST WOMEN BANK LIMITED

“Let the women’s bank be a pioneer in the helping Muslim

women secure economic independence and career satisfaction

within the Cultural ambiance and social values of an Islamic

society”

Mohtarama Benazir Bhutto (Shaheed) P.M. of Islamic Republic of Pakistan, Islamabad, December 3, 1989

2.1 History

First Women Bank Ltd. is a unique financial institution, a Scheduled Commercial Bank and

a development financial institution for the socio-economic empowerment of women. The Bank

was set up in 1989 by the Islamic world‟s first woman Prime Minister Benazir Bhutto (Shaheed),

who wanted a bank that would meet the banking needs of women entrepreneurs. Currently, the

Bank is headed by Mrs. Shafqat Sultana, who took over as President in May 2009. FWBL was

incorporated as a Scheduled Commercial Bank in the Public Sector as a Public Ltd. Company on

21st November, 1989 under the Companies Ordinance, 1984.

The Bank commenced its business on 2nd December, 1989 with a paid up capital of Rs. 100

Million; 90% of which was contributed in varying proportions by five leading Public Sector banks

of the country.


6

They were:

National Bank of Pakistan, Habib Bank Limited, Muslim Commercial Bank Limited,

United Bank Limited and Allied Bank Limited

10% of the remaining capital came from the Federal Government

The FWBL model caters to women at all levels of economic activity – micro, small,

medium and corporate. Most importantly, the Bank provides women with the support services

required to navigates the obstacles to the development of business. By doing so, FWBL is helping

them emerge as key players in the national and global economy.

The Bank has always looked at its micro-finance borrowers as potential SME and

Corporate clients. The Bank‟s unique credit policies promote asset ownership for women by

Financing to business entity if one of the following fulfills:

Where women have 50% shareholding

Where a woman is the Managing Director

Where women employees are 50% or more

In 1992, an ILO Geneva Study recognized First Women Bank Ltd. as a major innovatio n in

Pakistan, along with Edhi Trust and Lahore University of Management Sciences (LUMS). In 1994,

Euro money awarded FWBL the Best Bank in Pakistan for its low administrative cost.


7

FWBL was the first Commercial Bank to launch Micro Credit in Pakistan. In 2001,

Women‟s World Banking in its Global Directory profiled FWBL for Banking Innovation in

Microfinance, and acknowledged that FWBL features among the world‟s micro finance leaders.

To combat child labor in the carpet weaving industry, FWBL collaborated with ILO and

directly financed women micro-borrowers in rural areas. The Bank disbursed micro-credit to 2921

women living below the poverty line in 162 villages, with 100% recovery rate. Under this project

5842 children were weaned out from child labor and educated through non-formal educational

centers.

Asian Banking Award 2005 awarded First Women Bank Limited, FWBL / ILO – IPEC

Micro Credit Program as Runners-Up in its Micro-Finance Program category. Under this project,

one of the borrowers received the Global Micro Entrepreneurship Award (Runners-up) organized

by the UN Capital Development Fund in collaboration with CITI Group Foundation, Harvard

Business School and Pakistan Poverty Alleviation Fund.

In Pakistan, when compared with other countries of the world, female entrepreneurship is

amongst the lowest in the world. With very low female participation in the economy of the

country, the percentage of female employers is even less than one percent. The issues stems from

the statistical invisibility of women. There‟s very little research on the market itself, primarily

because women are just not considered a market worth tapping into on their own.


8

Even at the macro level, there are very few people working to empower women as a special

interest group. This is mainly because no extensive research or study has been done so far on

women‟s economic role. Realizing the importance of research, FWBL commissioned SPDC to

conduct a Market Assessment Study for First Women Bank. The study gave surprising results and

revealed that Credit demand of women in five big cities of the country ranged between Rs. 261

Billion to Rs. 285 Billion.

Since inception, FWBL has contributed substantially in raising a sizeable body o f women

entrepreneurs and banking professionals in the country. For example, the total proportion of

women bankers in the commercial banks is around 6% of the total bankers, which was less than

1% around twenty years ago.

To date, FWBL has disbursed Rs. 22,917 Million with outreach to 46,959 borrowers of

which, Rs. 15,580 Million has been disbursed to women which comprised 68% financing to

women.

FWBL achieved another milestone by introducing ATM & Online Banking. FWBL

customers can now withdraw cash from any ATM carrying the MNET sign across Pakistan. The

bank is also live on SWIFT to transfer funds internationally. At present, the Bank has a network of

38 branches in 23 districts of Pakistan.


9

FWBL was formed with shareholdings from all the large public sectors banks. Over time,

these banks were privatized; however, their shares in FWBL were not transferred to the public

sector.

A majority of the shares of FWBL are currently with the private sector banks – HBL,

MCB, ABL etc. Only National Bank of Pakistan and the Ministry of Women Development are the

public sector shareholder of the Bank.

Recently, the Government of Pakistan has decided to keep First Women Bank Ltd.

(FWBL) in the public sector by purchasing the shares of private shareholder banks i.e. MCB, HBL,

ABL and UBL through State Bank of Pakistan.

Today, FWBL‟s mission for empowering women remains unmatched:

“To transform the status of women from passive beneficiaries of social services to

dynamic agents of change”

2.2 Unique Character

“Undertaking the conduct of all forms of business of Banking Company in a manner

designed to meet the special needs of women and to encourage and assist them in promotion and

running of trade and industry and practice of profession.”


10

2.3 Credit Policy

First Women Bank Ltd. a commercial bank and a DFI, caters to women at all levels of

economic activities – Micro, SME and Corporate, thereby enabling them to transcend their status

from passive beneficiaries to dynamic agents of change.

The Bank has always looked at its micro-finance borrowers as potential SME and

Corporate clients. The Bank‟s unique credit policies promote asset ownership for women by

financing to business entity, if one of the following fulfills:

Where women have 50% shareholdings

Where a women is managing director


2.4 Vision & Mission

Following are the visions and missions of the FWBL:

2.4.1 Vision

To be the lead Bank for Women: Dynamic, adaptive and responsive to their special

economic needs, offering the best financial services and the best banking practices.


11

2.4.2 Mission

Our mission is to be a financially sustainable bank with a specialized focus on promoting

economic prosperity and self-reliance in women of urban and rural areas by:

Transforming the status of women from passive beneficiaries of social services to dynamic

agents of change

Promoting asset ownership, through its unique credit policies

Promoting entrepreneurs through Computer Literacy and Business Centers for skill

enhancement, product development and business management

Facilitating their access to financial services by providing support through its Financial

Services Desk on Corporate Affairs, Credit Management and Trade Finance activities and

advice on Legal, Taxation and Marketing issues

Providing extensive banking training through FWBL‟s Training Institute and collaboration

with other Banking Institutes of repute

2.5 Board of Directors

1) Ms Shafqat Sultna (President/Chairperson FWBL)

2) Mr. Qamar Hussain (Chairman NBP)

3) Ms. Batool Qureshi (Secretary Min of Women Development, Govt. of Pak)

4) Mr. Atif R. Bukhari (Pesident UBL)

5) Mr. M. Us man Ali (President MCB)

6) Mr. Zakir Mehmood (President HBL)

7) Mr. Khalid A. Sherwani (President ABL)


12

2.6 Awards & Achievements

1. ILO Geneva Study 1992

2. Euro money Excellence Award 1994

3. Leader in Micro-Finance 2001

4. Asian Banking Award 2005

5. Global Micro Entrepreneurship Award 2005

6. Citi PPAF Micro-Entrepreneurship Award 2008

http://www.fwbl.com.pk/?page_id=76






13

2.7 Future Plans

In 1989, the world‟s only bank for women was established. Since then, chapter by chapter,

year by year, against all challenges FWBL has strived to rewrite the lives of Pakistani women in

words of aspiration, achievement and empowerment & after 20 years we believe our story has no

meaning but only hopeful beginnings.


14

Chapter 03

SERVICES & PRODUCTS

OF

THE FIRST WOMEN BANK

LIMITED

“Transforming the status of women from passive

beneficiaries to dynamic agents of change”

3.1 Services

Following services are provided by the FWBL:

3.1.1 Online Banking

FWBL offers Online Banking Facility to its customers at branches all over Pakistan. Cash

may be accepted at a branch for crediting accounts at another branch. Cheques can be paid by a

branch by debiting the customer‟s account at another branch.

Payments of cheques

Cash receipts

Transfer of funds through cheques or cash between branches


15

3.1.2 ATM (Automatic Teller Machine)

With First Women Bank Ltd. ATM Card customers can access their Savings and Current

account through all ATM‟s in Pakistan.

3.1.3 Remittances

FWBL offers Funds Transfers in Pak Rupees (Inland Local Remittances) or in Foreign

Currencies, (Foreign Remittances) on request of customer.

Various Types of Remittance Facilities are available:

Payment Order

Demand Draft

Mail Transfer

Telegraphic Transfer

3.1.4 Locker Facility

Locker facility is available at all branches of the First Women Bank Ltd.

3.1.5 Utility Bills Collection

FWBL is equally participating in making utility service available to the entire public.


16

3.2 Liability Products

Following liability products are provided by the FWBL:

3.2.1 PLS Account

PLS Saving Accounts are opened for individuals, (single or joint) Charitable institution,

Provident and other funds of benevolent nature of local bodies, autonomous corporations,

companies, associations, educational institutions, firms etc.

3.2.2 Current Account

Current Accounts are opened , for individuals, (single or joint) firms, joint stock

companies, local bodies, autonomous bodies, associations, educational institutions etc,

and all other cases where the accounts are to be opened under the order of a competent

Court of Law

No profit is paid on the balances of current account

3.2.3 Hyper Profit Running Account

It is for business entities. Profit is paid on daily product basis.


17

3.2.4 Basic Banking Account

In compliance with the directives of State Bank of Pakistan via BDP Circular No. 30,

issued on November 29, 2005, the Basic Banking Account was launched.

This product has been introduced to facilitate the low income group as well as the

existing account holders who wish to convert their regular savings or current account

into Basic Banking Account.

The Basic Banking Account is a current account and can be opened with a minimum

initial deposit of Rs. 1000. Account holders will be allowed 2 deposit transactions

(either cash or through clearing) and 2 withdrawals (cash or clearing) each month.

There will be no minimum balance maintenance requirement, and hence no monthly

account maintenance charges will apply.

“In cases where balance in BBA remains „zero‟ for…” a continuous 6 month period, the

account will be closed automatically, without any notice to the account holder.

3.2.5 Foreign Currency

Foreign Currency Accounts are opened, on proper introduction and submission of

required documents along with an initial deposit prescribed from time to time

Rate of return on Foreign Currency Deposits are subject to fluctuation as determined in

accordance with State Bank of Pakistan directives


18

3.2.6 Term Deposit

The PLS term deposits are accepted for a period of minimum 7 days above

The profit on PLS term deposits determined by the bank at the end of each year

3.3 Assets Products

Following assets products are provided by the FWBL:

3.3.1 Micro Finance

FWBL is amongst the pioneers in micro-finance. In 2001 Women World Banking

acknowledged the FWBL as leader in micro-finance for its innovative products and services.

The three-pronged strategy of FWBL micro-finance model is:

Extending micro-credit to the Urban and Rural Women

Offering wide ranging support services

Research, documentation and compilation of women centric data

The Micro-Finance product we offer:

Ranges from Rs. 5000 to highest credit amount in the industry, of Rs. 100,000

Mark-up rates are amongst the lowest

Thus retaining and elevating micro borrowers to higher micro-credit ceilings


19

3.3.2 SME Finance

Small and Medium Enterprise (SME) means an entity, ideally not a public limited

company, which does not employ more than 250 persons (if it is manufacturing / service concern)

and 50 persons (if it is trading concern) and also fulfills the following criteria of either „a‟ and „c‟

or „b‟ and „c‟ as relevant:

A trading / service concern with total assets at cost excluding land and building up to

Rs. 50 Million

A manufacturing concern with total assets at cost excluding land and building up to Rs.

100 Million

Any concern (trading, service or manufacturing) with net sales not exceeding Rs. 300

Million as per latest financial statements

An Individual, if he or she meets the above criteria, can also be categorized as an SME.

The Bank offers SME loans at highly competitive rates. The model of First Women Bank Ltd is

the way forward, which believes that a “micro borrower” of today is a potential “SME” and a

“Corporate Client” of the future.


20

3.3.3 Corporate Finance

The Bank‟s unique credit policies promote asset ownership for women:

Annual sale turnover is Million and over

Has a successful business trade record for a minimum period of 3 years, backed by

audited financial

Financing to business entity:

Where women have 50% shareholding

Where a woman is the Managing Director


3.3.4 Business loans For Women

Provides financing to women entrepreneurs for establishment of new business or

development of existing business and for working capital

Women can get loans ranging from Rs. 0.1 Million to Rs. 2.00 Million

The Financial Services Desk of the bank assists the applicants of the loan on the

following criteria:

Pakistani National

Between the age bracket of 25-55 years

Possess 50% equity sharing capacity


21

3.3.5 Personal Loans

Providing you just that extra spending power around the house no matter what your needs

might be! Get greater spending power with personal loans for women.

3.3.6 Education Loans

Often women are deprived of their right to pursue higher education mainly because of

the financial constraints many families face. The society also does not realise that well-

educated and enlightened women help by rearing an equally enlightened future

generation.

First Women Bank Ltd. offers Education loans at an attractive rate, with special bonus

for the bright students who meet the bank‟s merit criteria

3.3.7 First Car

First Car is designed to assist women from all walks of life to conveniently avail car loan

facility from the bank. The scheme is specially designed for working women who often face

problems in commuting to their workplaces.


22

Women falling under these classes can apply for loan:

Salaried

Self employee (proprietor)

Professional

Business women

FWBL offers Financing up to Rs. 1.0 Million for new car and Rs. 0.5 Million for

secondhand / used cars (not over 3 years old model) for a maximum period of 5 years.

Special Features of the Car Scheme

Competitive financing rates

Low down payment

Flexible repayment option

Quick processing

Insurance coverage from reputable companies

Low processing fee

3.3.8 First Home

First Women Bank Ltd. offers home loans under the brand “First Home”. Women can get a

loan up to Rs. 7.5 Million from the bank


23

These loans are offered to all classes of working women i.e. salaried, self-employed

(proprietor), professionals in business

Another great advantage that only FWBL offers is that these Home Loans can be availed

singly or jointly i.e. with spouse or a male earning member of the family

3.3.9 First Choice

First Women Bank Ltd. proudly presents loans for buying consumer durables through

“First Choice” Scheme. Through this scheme, women can buy electrical appliances for their home

and kitchen with the convenience of paying on a monthly basis.

Exposure Limit for Individuals:

Middle Management employees / their families

Top Management employees / their families

Business women & their families

Low Income group & their families

Maximum Exposure Limits

For Individuals other than Government / Corporate employees Rs. 10,000 – Rs.

100,000

Exposure on Government or Corporate employees Rs. 50,000 – Rs. 500,000


24

3.9.10 Loan against Salary

FWBL offers loan against salary upto Rs. 500,000 for employees of Government

organizations, autonomous & semi autonomous bodies, Public Limited Companies, Private

Limited companies having paid up capital of Rs. 10 Million and above, Corporations having a

service contract valid for 18 months at the time of applying for limit and has been in service for the

past 3 years. Having Take Home salary equivalent to 50% of the gross pay this scheme can be

availed on the following basis:

A Pakistani Resident

The salary account should be maintained with FWBL and at least one month‟s salary must

be credited in the account prior to application for the facility

The retirement age of the borrower should be 6 months after maturity of the facility

End of service benefits should be equal to or more than the amount of loan applied

No extra charges/penalty will be applicable on early repayment


25

Chapter 04

THE FIRST WOMEN BANK LIMITED, SARGODHA BRANCH

4.1 Basic Info

Branch Manager Mrs. Anila

Branch Code 0033

Branch Phone 048-9230443

Branch Address 23, university Road Branch, Sargodha


26

4.2 Hierarchy

4.3 Introduction of the Branch

We started our branch operations in year 1995. Our branch is situated at Main university

road & on a very ideal position as it covers all the main areas. We have captured a large portion of

the market with our attractive services & saving plans. We are also providing financing facilities to

micro borrowers, SMEs & Corporate sector where

Women have 50% shareholding

Women is a Managing Director

Women employees are 50% or more

Guard

Messenger

Cashier

Officers

Accountant

Assistant

Manager

Branch Manager


27

We are not providing finance facility to any entity which does not cover any of these three

points as the mission of our bank is Women Empowerment by focusing on promoting economic

prosperity and self reliance in women of urban and rural areas.

4.4 Financial Highlights – FWBL Sargodha Branch

Financial Assets Amount (in Millions)

Total Assets 1,316

Total Advances 958

Total Deposits 1,034

Mark up received 53

Income 107

Expenditures 68

4.5 Range of financial products and services

Presently, our branch is providing the following financial products and services to our customers

Running Finance

Demand Finance

Small loans

Business Loans for Women

Personal Loans

Information Technology Finance


28

Asiash Scheme

Loan for Salaried Women

Micro Finance

SME Finance

Corporate Finance

Education Loans for Women

First Car

First Home

4.6 Work Performed at FWBL Sargodha Branch

4.6.1 Account Opening

The general banking performs various functions among them the first and most important

function is opening of an account. The process of opening an account is very simple and anybody

who would like to open his account could do it easily without any difficulty. An account opening

form is provided to the customer.

The customer after filling the form submits it to the bank along with his/her introduction

and CNIC copy. If an account is opened on the behalf of a company then a letter head is also

demanded which indicates the company is either registered or not.


29

The manager records the necessary details into this register and allots an account number

from this account opening register. This register is maintained for each type of account and the

account numbers are allotted serially.

After opening a saving and current account every applicant‟s data is entered into the

computer to maintain a safe record and application form is properly filled so that it can be

available when necessary. Cheque book is issued to the customer when the bank accepts the A/C

opening application form.

4.6.2 Types of Account Recommended to customers

There are three types of accounts

i. Saving

ii. Current

iii. Hyper Profit Account

As H.P account provides the profit on daily basis so, it is not recommended to the business

entities rather Current account is recommended. While normal Individuals have less number of

transactions so they are recommended to have a saving or H.P account.


30

4.6.3 Types of Customers

i. Individual

Only one person can operate this account.

ii. Joint

In case of joint account, applicant mentions that how much person will operate the account.

iii. Company Account

For company accounts following documents are required

Private registration

Resolution of board of directors

Commencement of business

Memorandum and Articles of Association

Balance sheet


31

4.6.4 Closing of an Account

There are number of reasons of closing an account. Some are listed below:

If customer desires to close his account

In case of death of one account holder.

Bankruptcy of the account holder.

If an account contain nil balance or not up to the requirement of rules.

Before closing any account, bank send letter to the account hold for informing him that his

account is going to be closed 3 times after regular intervals. There is need an approval form higher

authority to close any account.

4.6.5 Types of Cheques

i. Open Cheque

Open Cheque has following properties:

The word Bearer is not crossed

Cross stamp is not there

Cheque is not of limited companies

Self or name should be written on the cheque


32

ii. Crossed cheque

When the cheque does not fulfil the requirement of open cheque then it is known as crossed

cheque. The counter payment is not made for such type of cheques

iii. Order Cheque

When cheque is signed for someone by his/her name. The counter payment is made only to

that person by name the cheque is signed.

4.6.6 Dishonour Cheque

The cheque which is not cashed on the maturity date is called dishonour. This is also called

out dated cheque.

4.6.7 Token to the Cheque

A token is given on open cheques when presented to bank for payment. In this case

payment is made at the spot to the cheque holder. First of all cheque is presented to bank for

payment. The name of holder, no of cheque and amount is written on the register by the bank

employee & token is given to cheque holder.

Then Cheque reaches the computer department. There it is again feed in computer & it is

stamped after checking that the account holder has enough amounts in his account or not. After

feeding in computer, the cheque reaches the cash department where the holder can receives his

cash by giving token to the cashier provided that he has enough amounts in his account.


33

4.6.8 Cash Deposit (Pay-In-Slip)

Here it is very necessary to have knowledge about Pay-In-Slip. It is used for two purposes

Whenever we want to deposit cash in our account then pay- in-slip is used by writing

amount on it and depositing it to cashier along with money.

Whenever we have cheque from any party to be collected in our account we fill pay- in-slip.

One part is attached with cheque and another is given to cheque holder as a receipt.

4.6.9 Scrolling of the Bills

The utility bills that FWBL collects are scrolled down and the copy of it is send to the

concerned department i.e. FESCO, SNGP, PTCL and a copy is kept for bank record.

4.6.10 Remittances

i. Demand Draft (DD)

DD is made in order to have an amount as a security on demand of any

organization. DD is made to transfer the money between the cities. A specified amount is

charged on the making of the DD. First the application slip is filled and the CNIC copy is

attached with it and the desired cash (of which DD is required) is deposited on the counter.

And then remittance officer makes the DD.


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ii. Mail Transfer (MT)

If bank wants to Transfer money after collecting the money for a department the

MT is used e.g. Utility Bills transfer.

iii. Telegraphically Transfer

It is used for transferring the individual‟s money.

4.6.11 Online Banking

Online Banking makes easy to transfer the money from one FWBL branch to any other

FWBL branch.

4.6.12 ATM

In order to enhance the online banking the FWBL has provided the facility of the ATM

card. This on the same side can be used as the Debit Card. The ATM card holder in Sargodha can

use all 1 link, M-net machines. The account holder of FWBL can get it free of cost after fulfilling

the prescribed procedure by the bank. This is done in collaboration with MCB.

For the ATM user money withdrawal is one way of using the online Banking. Transfer of money

with FWBL is yet restricted.


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4.6.13 Recording the Daily Post

The post that are daily received by the bank from various banks, departments, other FWBL

branches and head office are recorded in a register having the same serial number on post and

register.

4.6.14 Loan Process

Step 1

To apply for any kind of loan to FWBL, the applicant must have an account with the bank.

If not, new current account has to be opened with an amount of Rs.1, 000

The applicant submits loan application along with the following documents.

Attested copy of NIC

Original Business Plan

Bank statement for past 6 months

Financial statement for the past 3 years

Borrower‟s Basic Fact Sheet

Stock reports

Credit Report


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If property is offered as collateral following additional documents are required

Sale deed/ Title deed/ Transfer letter

Non Encumbrance Certificate

Fard Milkiyat

P.T I Form from Property Tax Department

Against cash collateral, required documents are

Defense Saving Certificate (DSC) along with letter of pledge

Special Saving Certificate (SSC) along with letter of pledge

National Saving Certificate (NSC) along with letter of pledge.

However, the specific scheme may require other documents to be submitted to the bank

which have already been mentioned while discussing various schemes

Step 2

The processing fee charged for different services vary from Rs. 2000 to Rs. 3000

The applicant fills the application form along with the Borrower‟s Basic Fact Sheet

The applicant has to attach the required documents according to the loan scheme she is

applying for

The applicant must be very careful in this regard as the required documents vary from

scheme to Scheme


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Step 3

After the loan application is received, the credit department goes through the application

Two branch officers visit the business sight of the applicant to check the project viability

and verify the sight as well

Step 4

After the branch verification, the credit department carries out the evaluation and appraisal of

the loan request

The bank obtains legal opinion certificate from the lawyer for the clearance of the title of

applicant‟s property in case of property offered as collateral and gets it evaluated from

professional evaluator of its own choice

If all this turns out to be positive, the case is forwarded to the approval authority

Step 5

The regional office approves the loan up to Rs.5,000,000/- against cash collateral &

3,000,000/- against property while head office approves loan above Rs.5,000,000/ against

cash or above 3,000,000/- against property


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If the loan the loan is sanctioned, then

Legal documents are prepared and executed

The collateral is mortgaged in bank‟s favor

If necessary, the bank takes lien on salary of borrower/guarantor

The business assets/stocks/immovable assets may be hypothecated or pledged as

required by the bank.

The loan is disbursed to the borrower

4.6.15 Lockers

Account holders can enjoy the facility of the lockers in FWBL. Free lockers are granted to

those account holders who have at least 3, 00,000 rupees in their current account or 5, 00,000

rupees in their saving account.

Lockers can be operated with two keys one is kept on bank and one is given to the user.

When a customer comes to operate his/her locker he/she makes the entry in the register at bank.

Then the banker first put his key and then customer operates with his key. The locker can never be

operated with single key.


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4.7 SWOT Analysis

Strengths

Women friendly

Co-operative staff

Flexibility in Collateral requirement & installment

No hidden charges

Attractive rate of return

Women Empowerment & focus on women development

Good reputation in the market

Good quality of services & minimum process time

Promoting asset ownership

ATM free

Lockers

Online funds transfers

Leading Brand reputation of FWBL – World‟s only bank for women

Weaknesses

Focuses to women‟s mainly

Small network


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Shortage of staff

Lack of advertisement

Small percentage of Micro financing

No specialized branches for SME & Micro credit

Bank‟s own training center

Opportunities

Expand branch network

Hiring of specialized staff

Extensive advertisement

Specialized branches for SME &

Micro financing

Develop & design financial products

particularly catering the demand

existing for credit amongst professionally skilled working women

Bank‟s own training center

Women empowerment projects should be started with specific focus on

socio economic development of women


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Threats

Political instability as FWBL is a government owned bank

Energy crises

Global Recession

Security Problems

Increased competition in the market

Prices of products offered by competitive banks

Changing & New Technologies

4.8 Conclusion

Due to revolution of IT and new investment opportunities globally, it is evident from this

report and the financial statements of FWBL that it is making progress by leaps and bounds. Due

trend in last few years in consumer banking and corporate and SME sector new investment ways,

the profits of FWBL have grown considerably during the last few years and this trend is expected

to continue into the future.

So, we conclude that FWBL has a prosperous present and future, which assures wealth

maximization. Side by side we think that if bank would be able to cover and control on the above

mentioned recommendations then it would be in such a situation that will really lead it towards the

road of prosperity, development and integrity.


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With the above mentioned sentences we think there is too fault of the custo mers and in

order to make the proper working of the bank the customers should also cooperate with the bank

which will be really ambitious and diligent condition for the bank. And then bank will be in such a

situation and position to compete its competitors in the country as well as on international level.

internship report on the first women bank ltd

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