Credit Ppt by Hassy

MUSARRAT SANAMB-10-

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INTRODUCTION:National Bank of Pakistan is the largest commercial bank operating in Pakistan

The bank is engaged in providing commercial banking and related services in Pakistan and overseas.

The Bank's services are available to individuals, corporate entities and government.

its business portfolio is a major lead player in the debt equity market, corporate investment banking, retail and consumer banking, agricultural financing, treasury services

NBP headquarters in Karachi, Pakistan with over 1,254 branches country wide.

Participating in "World Bank" and "Asian Development Bank's" lines of credit.

VISION:"To be recognized as a leader and a brand synonymous with trust, highest standards of service quality, international best practices and social responsibility."

MISSION:NBP will aspire to the values that make NBP truly the Nation’s Bank, by:Institutionalizing a merit and performance culture. Creating a distinctive brand identity by providing the highest standards of services Adopting the best international management practices.

GOALS: To enhance profitability and maximization of NBP share through increasing leverage of existing customer base and diversified range of products.

Excellence in Direction Excellence in Growth Excellence in Performance Excellence in Management Excellence in Achievement

OVER VIEW OF THE ORGANIZATION:

COMPETITORS OF NBPCompetitors at Public Sector

First Women Bank Limited (FWB) The Bank of Khyber (KB)The Bank of Punjab (BOP)

Competitors at Private Sector

My Bank Limited Allied Bank Limited Bank Al-Falah Limited Atlas BankBank Al Habib Limited Habib Bank LimitedAskari Bank Saudi Pak Bank LimitedFaysal Bank Limited Metropolitan Bank limited Muslim Commercial Bank Limited

ORGANIZATIONAL HIERARCHY CHART

4. SVP 5. VP3. EVP2. SEVP

OG-I

Executives

Officers

OG-II OG-III

Clerical Staff

Head Cashier

CashierNon

Clerical Staff

Peon, Guards etc

Assistant

1. President

6. AVP

CashDept.

DEPARTMENTALIZATION:

COMMERCIAL & RETAILING

DEPARTMENT

COMMERCIAL & RETAILING

DEPARTMENT

ACCOUNTS DEPARTMENT

ACCOUNTS DEPARTMENT

GOVERNMENT DEPARTMENT

GOVERNMENT DEPARTMENT

FOREIGN EXCHANGE DEPARTMENT

FOREIGN EXCHANGE DEPARTMENT

CREDIT AND ADVANCE DEPARTMENT

CREDIT AND ADVANCE DEPARTMENTGENERAL BANKING

DEPARTMENTGENERAL BANKING

DEPARTMENT

NBP DEPARTMENTS

ADVANCE DEPARTMENT:

TYPES OF ADVANCES:DEMAND FINANCE:CASH FINANCE:RUNNING FINANCE:LOANS:

TYPES OF LOAN:The credit department of NBP has providing the following types of loans•Short term loans •Long term loans •Working capital loan•Syndicate (project) loan

NBP STUDENT LOAN SCHEME:-

Pursuant to the announcement made by the Federal Finance Minister in his 2001-2002 budget speech, a STUDENTS LOAN SCHEME (SLS) for Education was launched by the Government of Pakistan in collaboration with major commercial banks of Pakistan (NBP, HBL, UBL, MCB and ABL).

SERVICES OFFERED OF NBP

KISAN DOST SCHEME:- Agriculture Made Easy

Agriculture Farming Program

KISAN TAQAT SCHEME:- promise of prosperity

Dairy Farm Scheme

SERVICES OFFERED OF NBP

MALIK UMAIRMB-10-

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STRENGTH:•NBP one of the largest financial institutions of Pakistan with eight million of customer•NBP has 1254 branches located all over Pakistan. And 23 international locations including the USA, United Kingdom, Europe and the Far East.•It acts as an agent of the Central Bank wherever the State Bank does not have its own Branch.•Performing social responsibilities and claiming “The Nation’s Bank”•Earning commission from SBP on Government transaction•Leading bank in agriculture financing amongst commercial banks with the market share of 15%

OPPORTUNITIES:•Being a Government Bank NBP having wide scope in economic market.•Its vast network of domestic and overseas branches can help to expand business.•Bank’s deposit is increasing rapidly so there is a great opportunity to enhance its investment and financing.•Being an agent of State Bank of Pakistan it can play vital role in local economy.•Amongst highest bank is Asia, NBP further expand its services proudest and earn more profit. •The bank is reshaping its portfolios by investing into higher area of growth

SAMREEN LODHI

WEAKNESSES:•Lowest Internal Control and Compliance System, SBP rated “Marginal” which is alarming for the Bank.•Unsatisfactory corporate culture of the Bank.•Less number of Online Branches.•Ineffectively use of technologies i.e. Information technology•Shortage of staff- per employee customer is very high side•Technical education and training of staff is insufficient The workload in NBP is not evenly distributed

THREATS:•SBP penalties due to low internal control and compliance.•Government, SBP and Prudential Rules and Regulations.•Schedule banks and Multinational/International bank’s profit rates.•Its staff switching over to other private banks due to more facilities.•Other bank’s charming atmosphere and relaxation in documentation.•NBP staff code of ethics and practices.•High number of complaints regarding staff behavior.•Payments and FBR Collections create heavy workload.

DILEMMA FACED BY ORGANIZATION:

Rather NBP is a nation's bank but like any other organization NBP also is not free from problems and crisis.. In this topic the most important problems are included which are widely present at the organizational level. 1. PROBLEMS AT THE BRANCHES OF NBP:- 1) Customer Satisfaction:

2) Poor record management and filing system: 3) Unequal distribution of work:

4) Marketing visits:

•Excessive paper work:

•More accounts fewer deposits:

3. ADMINISTRATIVE PROBLEMS:

•Job analysis is not effective:

•Lack of appreciation:

4. PERSONAL MANAGEMENT PROBLEMS:

Need for better training programDeveloping Managerial LeadershipRecruitment policyPromotionsLack of business communication

2. FUNNCTIONAL PROBLEMS:- • Formal Organization:

BRIEF HISTORY AND BACKGROUND OF BANK ALFALAH Incorporated on June 21st, 1997 as a

public limited company under the Companies Ordinance 1984

Its banking operations commenced from November 1997

Belongs to Abu Dhabi Group One of the Leading Banks in Pakistan

VISION

To be the premier organization operating locally & internationality that provides the complete range of financial services to all segments under one roof.

MISSION

To develop & deliver the most innovative products, manage customer experience, deliver quality services that contributes to brand strength, establishes a competitive advantage and enhances profitability, thus providing value to the stakeholders of the bank.

PRODUCTS W.R.T DEPOSITES

PLS SAVINGS ACCOUNT

ROYAL PROFIT

BASIC BANKING ACCOUNT

PRODUCTS W.R.T DEPOSITESAlfalah Mahana Amdan

Some Silent Features Minimum placement limit Expected Rate of profit Automatically credited on the 1st working day Free Personal Accident Insurance financing facility up to 90% Age Limit

PRODUCTS W.R.T DEPOSITES ALFALAH KAMYAB KAROBAR Care Savings Account

Features Returns up to 9%* p.a. Enjoy monthly profits calculated on daily basis

balance, paid out monthly in your account Open with an initial deposit of Rs. 1,000 only

with no service charges No restriction on number of monthly deposit or

withdrawal transactions Accessibility and Convenience.

PRODUCT AND SERVICES Care Savings Account Features

Returns up to 9%* p.a. Enjoy monthly profits calculated on daily basis

balance Open with an initial deposit of Rs. 1,000 No restriction on number of monthly deposit or

withdrawal Convenience of online banking SMS alerts and free e-statements Locker facility at special discounted rates Easy access to funds via VISA ATM

PRODUCTS W.R.T FINANCING Consumer Finance

Credit Cards

Home Loans

Auto/Vehicle Loans

Debit Cards

MUHAMMAD WAHEEDMB-10-28

BANK ALFALAH CREDIT CARD

CREDIT CARDS Powered By “VISA” Accepted at nearly 27 Million locations in

more than 150 countries worldwide Accepted in Pakistan at more than 2200 Bank

Alfalah establishments SBS Plans for purchase of various home

appliances

BANK ALFALAH CREDIT CARDS (CONT’)

No Joining / Annual / Renewal fee Utility bills payment through 24 hour Call

Center and Auto Debit instructions SMS for card usage, mini statement, payment

receipt confirmation, etc. Cash withdrawal at all 1LINK ATMs Special offer on Warid post paid connections Monthly Card Statements 24-Hour Phone Banking Facility

BANK ALFALAH CREDIT CARDS - TYPES

PLATINUM GOLD & SILVER YOUNG PROFESSIONAL WOMEN EXCLUSIVE STUDENT CARD SUPPLEMENTARY CARD VISA MINI AWAMI CARD

*brief descriptions to follow in oral presentation

BANK ALFALAH CREDIT CARDS Schedule of Charges

(Double Click on the object on right side to Open MS Word File)

Service Fees: 3.00% per month (36% APR) on

cash advance 3.00% per month (36% APR) on

retail transactions 1.50% per month (18% APR) on

BTF transactions

Schedule of Charges For Platinum, Gold and Silver Cards

Service Fee 3.00% per month (36% APR) on cash advance 3.00% per month (36% APR) on retail transactions 1.50% per month (18% APR) on BTF transactions

1.75% per month (21% P.A. flat rate) on SBS transactions (APR 31.23% to 36.74%)

Step-By-Step (SBS) - Factors & APR details:

Installment Plan Factor APR 3 months 0.350833 31.23% 6 months 0.184167 35.15% 9 months 0.128611 36.36% 12 months 0.100833 36.74% 18 months 0.073056 36.68% 24 months 0.059167 36.22% 30 months 0.050833 35.66% 36 months 0.045278 35.07%

0.99% per month (11.88% P.A. flat rate) on BTF to SBS transactions (APR 17.73% to 21.44%)

BTF to SBS - Factors & APR details:


24% APR on Credit on Phone to SBS Transactions Credit on Phone to SBS - Factors & APR details:


Late Fee Rs. 600/- or 10% of minimum amount, whichever is higher. Cash Payment Processing fee Rs. 100/- per transaction. Merchant Discount Charges Upto 5% of transaction amount. VISA Mini Card Supplementary Fee

Rs. 500/-

Cash Withdrawal Fee: - Cash Advance Fee/Call & Pay Fee

Rs. 500/- or 3% of cash advance amount, whichever is higher

1% of cash advance amount

BANK ALFALAH HOME LOANS

BANK ALFALAH HOME LOANSHome Loan Programs at Bank Alfalah Home Start Home Construct Home Buyer Home Improver Home BTF

*brief descriptions to follow in oral presentation

BANK ALFALAH HOME LOANS(CONTD.)

Eligibility Criteria

Pakistani Nationality. Age Range 23 and 60 years at the time of application.

(Subject to maximum age of 65 at the time of maturity). Continuous employment in a permanent position for the

last 2 years or more OR 3 years (or more) of business or professional experience

Gross annual income is Rs: 240,000/ — or more [Spouse’s income (upto 50%) can also be combined].

If you have been a Bank Alfalah borrower for past one year with clean payment record.


Documents Required

Basic Documents: 2 recent passport size photographs Copy of Computerized National Identity Card (Original

to be shown at branch) Bank Statement for the last 6-12 months (Original or

attested) Copies of complete chain of title documents of the

property being offered (If identified) Processing Fee Cheque favoring Bank Alfalah Limited Life Insurance (MPP) & Property Insurance (PI) form Letter of Understanding


Additional documents for Salaried Resident Pakistanis Salary Certificate (Original) from the employer, showing

gross salary deductions and length of service. Copies of last two salary slips dully attested by the HR

Department. Employment Verification form signed by the employer.

Additional documents for salaried Non Resident Pakistanis (NRPs)

Copy of Pakistani Passport valid for at least next 1 year. Copy of Contract / Work Permit / Iqama / Residence Permit

etc. Copies of last three Years Income Tax Returns (Not

applicable for Middle Eastern Countries) Personal Guarantee of a relative based in Pakistan and

acceptable to Bank.


Additional documents for Businessmen / Self-Employed individuals.

Copy of current association membership / trade body membership certificate (if applicable)

Deed of Partnership + (Undertaking & NOC) as per Bank format.

Sole Proprietorship Letter / Certificate from customer’s bank.

Copy of latest Form 29 duly attested by the company secretary.

Letter from company secretary confirming either the status and share holding or remuneration (Where applicant is a Director / Paid Director of company)

Copies of last three Year Income Tax Returns.


Miscellaneous as per requirements Construction: Bill of Quantity prepared by an

Architect Renovation / Improvement: Estimate of Renovation BTF: Certificate of balance from current lender bank

including the list of title documents held. BTF: Customer’s declaration Proof of other Income (if any such as Rent

Agreement, Agri Pass Book, etc.)


Processing Fee (Non Refundable)

For financing upto Rs.1.00M 5000For financing upto Rs.2.50M 10,000For financing upto Rs.5.00M 12,500For financing over Rs.5.00M 15,000


Mark-up Rates:

1 Year KIBOR + 2% for Salaried person1 Year KIBOR + 3% for Business People / Self-

employed and Overseas Pakistani (both salaried and self-employed)

Fixed Rate Options: 1 Year

Salaried 12.50% per Annum

Self-employed Professionals & Businessmen and Overseas Pakistani (both salaried and self-employed) 13.50% Per Annum

* These are indicative rates reviewed monthly


Late Payment Charges: Rs. 500/- per late payment

Prepayment Charges: Nill if repaid through own sources. Otherwise 5%

penalty of the outstanding amount. No charges are applied on balloon/bullet payments for

reducing your loan amount

Documentation Charges: At actual, including stamp duty charges for legal documentation, on-site inspection during construction, lawyer’s fee and charge registration fee, as advised by the relevant persons/ agencies.

*All quoted rates are subject to change in response to SBP / Market factors. However, we will notify our customers of each rate change


10 steps of Home Financing at Bank Alfalah1. Bank Alfalah provides all necessary information

about Home Finance. Through:a)A face-to-face meeting b)The postc) And over the telephone

2. Client gives the Bank some basic information about income and the amount needed.

3. Client completes an application form and submits it together with the required documents.

4. Bank makes some inquiries about client’s financial circumstances.

5. Bank carries out a valuation of the property and verification of client’s income.


6. Once initial processing is complete, Bank sends the Client, its offer through a “Facility Advice Letter”.

7. Client signs the Facility Advice Letter and return it to the Bank.

8. Bank’s Documentation Control Centre gets in touch with the Client to complete Finance & Security documentation including legal opinion on the title documents of the property and also the insurances.

9. The Client signs the Finance Agreement and Charge documents.

10. Bank’s legal advisor accompanies the client to the Registrar’s office on the appointed date with the Client’s cheque against the financing for conveyance of the property and Client’s home finance begins.

SHAHROOZ MASOODMB-10-57

BANK ALFALAH VEHICLE LEASE

BANK ALFALAH CAR FINANCINGBenefits and Features: Quickest processing. No hidden charges. Minimum down payment. Complete repayment at any point of

time. Balance transfer facility {BTF} for

existing as well as new clients from other Banks.

Tenure period ranging from 1 to 5 years.

BANK ALFALAH CAR FINANCING Financing of all brand new locally

assembled vehicles and used cars. Financing limit ranging between Rs.

200,000/- to Rs. 2000,000/- for brand new cars.

Corporate & Individual Car Leasing Insurance Repayments Security You Can Act As A Co-Borrower

CAR FINANCING MARK UP RATES

Financing Product 1Yr 2Yr 3Yr 4Yr 5Yr

Car Loan for Brand New Vehicles 14.00% 14.50% 15.00% 15.50% 15.50%

Car Loan for Brand New Imported Vehicles

16.00% 16.00% 16.00% 16.00% 16.00%

Car Loan for New Commercial Vehicles

15.50% 15.50% 15.50% 15.50% 15.50%

Car Loan for Used Vehicles (Local Assembled Only)

17.00% 17.00% 17.00% 17.00% 17.00%

Car Loan for Internal / External BTF (Local Assembled)

16.00% 16.00% 16.00% 16.00% 16.00%

Car Loan for Internal BTF (Imported)

17.00% 17.00% 17.00% 17.00% 17.00%

Corporate Discount RateA Corporate Discount of 0.5% shall continue to apply on all above mentioned rates.

BANK ALFALAH CAR FINANCING (CONTD.)

Eligibility Criteria: Pakistani National Identity Card holder. Over 20 years of age (Maximum 60

years in case of salaried and 62 in case of a business person at the time of maturity of the loan).

Salaried , businessman or self employed.

BANK ALFALAH CAR FINANCING (CONTD.)

Documents Required: Two passport size photographs. Copy of National ID card. Bank statement for the last six months. Salary certificate {for salaried individual}. Business proof {for a business person}. N.T.N Certificate. Co-borrower’s NIC copy {if the car is to be in

the name of the co-borrower}.

BANK ALFALAH DEBIT CARDS

BANK ALFALAH DEBIT CARDSBank Alfalah Debit Card is named as

Alfalah Hilal Card. Visa Debit Card Unlimited access to your current / savings account

with a simple swipe No Interest No Minimum Income Requirement -just open an

account in any branch of Bank Alfalah Limited and apply for the Hilal Card

No PIN required for Retail Transactions Accepted at more than 1 Million ATMs and 27 Million

retail outlets around the world

BANK ALFALAH DEBIT CARDS (CONTD.)

Uses of Hilal Card: As a Debit Card As an ATM Card

Difference between Hilal Card and Credit Card:

Hilal Card Credit Card

Buy Now, Pay Now Buy Now, Pay Later

No Monthly Repayment

Monthly Repayment

No Interest Charged

Interest is Charged

Limit is the Balance in the Account

Limit is the approved Credit Limit

WHY SHOULD YOU APPLY FOR THE ALFALAH HILALCARD? No Interest No Minimum Income Requirement - all

you need to do is open an account in any branch of Bank Alfalah Limited

No PIN required for Retail Transactions Accepted at more than 1.5 Million ATMs

and nearly 30 Million retail outlets around the world.

FINANCIAL SERVICES Structured Finance Small and Medium Enterprise (SME) Agri Finance ALFALAH KAROBAR FINANCE Treasury and Investment

SWOT ANALYSIS STRENGTHS

Rapidly increasing networks of branchBank Alfalah has been awarded an AA-confidence of customers on of Bank Alfalah.E- net bankingHigher quality of services and productsFinancial strength

SWOT ANALYSIS WEAKNESSES

As per Bank policy, advertising and publicity is not extensively emphasized.

The main focus of Bank is major cities of Pakistan

Target Market is not identified

SWOT ANALYSIS OPPORTUNITIES

Bank Alflah can captured various segments of the market

Penetration of products can enhance the market share.

In the rapidly growing industry of Pakistan, launching of another SBU, Alwarid (Warid Telecom)

SWOT ANALYSIS THREATS

Uncertainty of EconomyHigh Rate of InflationTrend of MergersPrivatization of BanksRisk of Defaults

MUHAMMAD HASNAINMB-10-75

HABIB BANK LIMITED

Establish in 1941 at Bombay by Ismail Habib 1947 established in Pakistan 1926 domestic branches 55 international branches Ist installation of mainframe computer in Pakistan followed

by ATM Internet banking facilities in all branches 2003 AKFED acquired 51% of the share against PKR

22.409 billion (USD 389 million).

HABIB BANK LIMITEDVision Enabling people to advance with

confidence and success.

Mission To make our customers prosper,

our staff excel and create value for shareholders.

PRODUCTS AND SERVICES OF HABIB BANK LIMITED

DEPOSITE ACCOUNTS HBL CAR LOAN HBL CAR TO CAR HBL CREDIT CARD HBL DEBIT CARD HBL PERSONAL LOANS HBL PHONE BANKING HBL BANK ASSURANCE

HBL’S PRODUCTS W.R.T DEPOSITES

Current Accounts HBL BusinessValueAccount Up to 5.35%* profit per annum ,Minimum balance of Rs. 20,000 ,Unique

transactional account for Businessmen

Current Account Minimum balance of Rs. 5,000, Unlimited transactions ,Non-profit bearing

Basic Banking Account (BBA) Can be opened with only Rs. 1,000 , No minimum balance requirement

Non-profit bearing

HBL’S PRODUCTS W.R.T DEPOSITES

Savings accounts

HBL Value Account

7.19%* profit per annum, Deposit 10,00-1,000,000

PLS-Savings Account

Minimum balance of Rs. 20,000, 5.06% profit per annum ,Profit paid bi-annually

Remittance Munafa Plus Savings Account

Special account for receiving foreign remittances ,

5.12%* profit per annum , Minimum balance of Rs. 20,000

HBL’S PRODUCTS W.R.T DEPOSITESSavings accounts

Daily Munafa Account Minimum balance of Rs. 20,000,

Profit calculated daily, paid every month

Up to 8.84% profit per annum*

Daily Progressive Account Minimum balance of Rs. 20,000

Unique transactional account for Institutions

Profit calculated daily, paid every month

Up to 11.57% profit per annum*

HBL’S PRODUCTS W.R.T DEPOSITESTerms Accountsfor a fixed duration and earn profit while keeping your savings

secure

HBL Advantage Account Loan facility up to 90% of investment ,Minimum investment of Rs.

25,000

Withdrawal at end of fixed term

Tenure Profit at maturity 3 MONTHS 7.50%* 6MONTHS 8.00%* 1 YEARS 11.00%* 3 YEARS 13.00%* 5 YEARS 14.00%* 10 YEARS 17.00%*

HBL’S PRODUCTS W.R.T DEPOSITESForeign Currency Accounts Accounts in multiple currencies as savings and term accounts

FC-SB To earn profit, minimum balance in USD, EUR and GBP is 1,000 Interest is payable on a quarterly basis Savings Account offered in 3 currencies, USD (US dollar), EUR

(Euros) and GBP (UK pound)

HYFFD (High Yield Foreign Currency Fixed Deposit) Profit paid on maturity only. Available in 1 month, 2 month, 3 month, 6 month and 12 Month in

USD, EUR and GBP

HBL CAR LOAN

Choice of used, new local/imported and reconditioned imported car.

Repayment options ranging Upto 7 years Upto 85% of financing for the car of your choice. Insurance at all times for complete peace of mind and security.

Eligibility Criteria

HBL CAR TO CAR

Upgrade - Simply return the car to HBL and drive a new one home

Walk away - Return the car to HBL and end the lease

Buy - Keep the same car. Just make a one-time settlement of the car’s residual value to HBL or pay the same in easy installments over a specified extended period of time

Sell - Enjoy the gain from selling off the car at a higher price in the market than what you ay HBL as the residual value

http://www.hbl.com/individual-customers-cartocar.php

http://www.hbl.com/individual-customers-carloan-comparecars.php

HBL CAR TO CAR (CONT’)

Documents require for Salaried Individuals

Complete Application Form Salary Certificate / Most recent Salary Slip Bank Statement for past one year Two Copies of NIC Employment Certificate with date of

joining Two passport size photographs Copy of the last paid utility bill (residence)

http://www.hbl.com/individual-customers-cartocar.php

HBL CAR TO CAR (CONT’)

Self-Employed Business persons/Professionals

Complete Application Form Two Copies of NIC Two passport size photographs Letter of proprietorship / Registered Partnership Deed Certified latest Form A and Form 29, where

applicable, along with articles and Memorandum of Association

Copy of last paid utility bill (residence) Bank Statement for the last 1 year

http://www.hbl.com/individual-customers-carloan-comparecars.php

HBL CREDIT CARD

HBL DEBIT CARD

No Interest Ease & Security Spending Limits Free Account Statement International Recognition & Acceptability

HBL PERSONAL LOANS

tenure: 12, 24, 36,48 or 60 months No processing fee Repayment through easy and affordable

monthly installments from salary. Minimum salary Rs. 12000

HBL BANK ASSURANCEHBL and New Jubilee Life Insurance Company

Limited (NJLI) introduce Amaan (Retirement Plan)

plan covers life insurance and gives attractive returns on investment to its customers.

HBL BANK ASSURANCE(CONT’…) Tabeer (Child Education and marriage plan)

SHAHID ABBASMB-10-59

HBL’S PRODUCTS W.R.T FACILITIES

FAPC (finance against packing credit)

FAFB(finance against foreign bills)

letter of credit

Demand finance

Running Finance

CASH FINANCE (CF)

HBL’S PRODUCTS W.R.T FACILITIES

DEMAND FINANCE fixed period, repayable lump sum or gradually installments.

pledge or hypothecation of goods, produce or merchandise

Demand Finance to Students Qarz-e-Hasana Scheme Loans are allowed to the

students, teachers without any interest or mark up with the recommendations of the MPA or MNA.

Demand Finance (Staff) Loans are offered to the staff of the following four categories.

a. House Building Loans against mortgage of property.

b. Loan for purchasing vehicles.

c. Loan equivalent to month’s salary.

RUNNING FINANCE (OVERDRAFT)

meet temporary requirements of the customers banker allows withdrawals from his account above his balance Allowed against collateral security

Unsecured

bank pay upon the personal security of the customer’s mentioned on the customer’s account.

Secured bank allows his customer to withdraw more than his deposits

after giving security against the amount overdrawn.

securities: Share certificate, Saving certificate Deposits Mortgage of property Guarantee of person

FAPC (FINANCE AGAINST PACKING CREDIT)provided to clients engaged in export trade.

exporter should give documentary proof to the bank consist

of L/C in favor of exporter indicating the description of the merchandise, the purchase price, date of delivery along with other terms.

FINANCE AGAINST THE FOREIGN BILLS (FAFB)

It is a post shipment finance facility which is provided by the banks to its clients after providing the evidence of shipment; he contacts his bank to request him to lodge the documents. He then provides the request letter with sale contract to grant him finance & this department grant him finance (90% value of commercial invoice).

. AGRICULTURE LOANS Loans to the farmers with holding up to

25 acres for meeting their short terms, medium and long terms Agricultural production requirements, such as:

Agricultural inputs Tube wells Live Stock Framing Land improvement

INDUSTRIAL LOANS Besides the short-term loans which play

a part in working capital medium and long-term loans are also given to industrial sector for purchase of machinery and other capital nature goods.

HBL ZARAI PRODUCTS

LETTER OF CREDIT

Necessary Documents required for L/C: NTN Tax Authority registration certificate Chamber of Association’s trade certificate Type of Business NIC Margin Registration No. Application for L/C

TYPES OF LETTER OF CREDIT Sight letter of credit: The seller submit all the documents with

draft in the importer country Complying with the all terms and

conditions. The payments are made on the presence of the documents.

Usance letter of credit: Under these circumstances it is agreed

that the payment will be made after a specified period. So the payment is made after or on the expiry of that date.

SWOT ANALYSIS

Strengths Goodwill & historical background Professional and well trained staff Largest customer base HBL is Pakistan's largest commercial bank HBL has a domestic network of 1,425 branches

with an international network of 48 branches in 26 countries

20% share of HBL in financial market Large Balance sheet size Decentralized authority HBL’s car to car financing scheme is unique in

auto loan segment.

SWOT ANALYSIS(CONT’….)WEAKNESSES: Unfavorable union activities and management conflicts Checking System is at intra-department level Weak marketing policies Nepotism & Favorism Infected portfolio still exists as bad debts Centralized management in particular areas lack managerial training as they are not properly

educated Mission of HBL is not well defined.

SWOT ANALYSIS(CONT’….)OPPORTUNITIES: E-Banking High mark up rates AUTOMATIC TELLER MACHINE (ATM) Rate of return

SWOT ANALYSIS(CONT’….)Threat: Other private commercial bank with sound profitability is also

a threat to HBL e.g. UBL, Alfalah, MCB etc The Rupee Travelers Cheque (RTC) sales volumes may be

affected on account of regulatory restriction imposed by SBP on issuance of large value denominations.

For the last of 2 to 3 years, Pakistan is facing economic and political instability which is a big threat.

Foreign banks are flourishing in field of consumer financing. Afghan war and Iraq war has a deep effect on the economy of

Pakistan, which has affected HBL. Increased regulations from State Bank of Pakistan may affect

its business.

THANK YOU!

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