HMB Rules Policy Guide Lines Apr 2015

7/23/2019 HMB Rules Policy Guide Lines Apr 2015

http://slidepdf.com/reader/full/hmb-rules-policy-guide-lines-apr-2015 1/130

Habib MetropolitanBank

HR Rules & Policy Guidelines

Updated (April 2015)



Chapter Part Description PageNo.

I-AI-BI-C

Corporate Culture & ValuesOrganizational Chart & Delegation of AuthorityGeneral

010102

II Discipline & General Conduct 03–05

IIII

II

IIIIV

IV-AV

VI

EmploymentRecruitment1. Identification & Approval of Job / Post2. Source of Recruitment3. Selection Process4. Selection Criteria

5. Appointment Formalities6. Confirmation of Services7. Hiring of Management Trainee Officers

Promotion & Increment (Promotion Policy defining the competentauthority, minimum eligibility criteria/considerations & timings).

PlacementsTransfer / RotationRelocation Policy [Intercity]Employees Recognition

Service Award

060607

07 - 09

0909

09–12

13–14

15151516

16IV

IIIIII

CompensationClassification of Employees & Pay ScalesStaff Benefits SchemesTraveling & Daily Allowances Rules

1718–2829–30

VVI

VIIVIIIIXXXIXII

IIIIII

Performance Evaluation 31

EmployeeTraining & DevelopmentEmployee TrainingInternal Job PlacementInternship Policy

32–3334–3535–37

Succession Planning 38–39Grievance Policy / Conflict Management 40

Power of Attorney 41

Disciplinary Action Policy 42–45

Separation 46–47

Code of Conduct – “Protection Against Harassment of Women at theWorkplace Act, 2010”

48

Annexures & Modification Index

HABIB METROPOLITAN BANK LIMITED


Table of Contents



1

Chapter I-AThe Vision

Based on a foundation of trust, to be the most respected financial institution, delighting customers withexcellence, enjoying the loyalty of a dedicated team, meeting the expectations of regulators and

participating in social causes while providing superior returns to shareholders.

Corporate Culture & Values

We believe our work culture is what gives us the edge because it is easy to copy products, product pricingand servicing, whereas it is very difficult to copy culture and, hence, it is our endeavour to manage theaffairs through culture and not merely policies and rules.

Our Board of Directors, the CE and the Management have set this ideology, whereby, we can use our workculture nurture and help the people and the institution to grow together. This philosophy helps imbibe thecore values:

1. Trust / Integrity2. Respect3. Commitment4. Teamwork / Unity5. Fulfillment

& 7 i.e. –composition of - amended vide memo: HO/HRD/CIR-015/2011 dated 02.11.2011)

HR Vision

Passionate to inspire people for excellence.

HR Mission

To enhance organizational effectiveness through inculcating a performance oriented culture, by engaging,motivating, harnessing talent to build leadership.

Chapter I-B

Organization Chart & Delegation of Authority

Organizational Chart & Delegation of Authority specimen of which is at Annexure ‘N & ‘K-1. The same is

subject to change, whenever deemed necessary by the Management.



2

Chapter I-C

General

1. These rules will be called HABIBMETROHR Rules & Policy Guidelines.

2. They shall come intoforce from July 2007.

3. These rules shall apply to all employees of the Bank provided that they shall not apply except asotherwise provided in these rules or to such extent as may be specially or generally prescribed bythe Chief Executive to staff or specialists recruited or engaged on special contracts or terms.

4. The HR Rules & Policy Guidelines will be reviewed biennially.

5. All subsequent changes to be applicable to all employees except as otherwise indicated.

6. The Board of Directors may in its absolute discretion, amend, modify, omit or replace any or all

these rules at any time.

7. The purpose of the Human Resource & Remuneration Committee (HR&RC) is to assist the Boardin fulfilling its responsibility relating to human resource and related matters. Terms of reference of the committee are placed at Annexure ‘O.

8. Bank shall not enter into leasing, renting and sale / purchase of any kind with the officers,employees among others. This restriction does not apply in case of purchase of vehicles, laptops,mobile phone devices and iPads by the officers or employees of the banks / DFIs which remainedin their own use at least at book value at the date of such transaction.



3

Chapter II

Discipline & General Conduct

1. Employees of the Bank shall at all times safeguard the interest of the bank and serve the Bank

according to the best of their skill and ability to observe the rules and regulations and in all respectsconform to and comply with the overall directives and policies of the Bank.

2. Employees shall conduct themselves with proper decorum, dignity and well established norms andethics generally relating to employment and service of corporate organizations while dealing withthe Bank, its Board of Directors, Management, Senior Executives, their Superiors as well as other employees and the Customers, both during active working hours and otherwise, so as to maintainand enhance the prestige, regulations and commercial viability of the Bank and maintain cordialworking relationship.

3. Employees shall devote their whole time diligently to their duties during office hours and use their

best endeavours to promote the business and the interest of the Bank. They shall not engage inown business and shall not without the prior consent of the Chief Executive be engaged in any wayor for any purpose whatsoever for any part of their time during office hours or outside office hours,for remuneration or otherwise, by any person, firm or company other than the Bank.

4. Employees must maintain complete confidentially and shall not (except so far as it is necessaryand proper in the ordinary course of their employment) disclose to any person any information asto the practices, dealings or affairs of the bank or any of its customers or as to any other matter which may come to their knowledge by reason of their employment as aforesaid.The employees must maintain complete confidentiality even after separation. Upon separation theymust desist from engaging or help in engaging the staff of the bank for at least a period of one

year.

5. No employee of the Bank shall:a. Remain absent from duty without obtaining prior sanction of leave.

b. Leave the premises of the Bank during office hours (excluding recess for prayers/lunch)without the permission of his immediate superior.

c. Enter into any speculative transactions or dealings in shares, securities or otherwisewhatsoever.

d. Engage in gambling, racing, betting or wagering contracts.

e. Take any narcotics or similar intoxicants or engage in transactions pertaining thereto.

f. Engage inany kind of business, trade or profession whatsoever.

g. Participate in any political or subversive activities.

h. Accept any gifts or presents from any customer or prospective customers of the Bankor their relatives in kind or cash.

i. Enter into any transaction with any customer of the bank to buy / sell articles.

6-a Whenever the Bank may so require, employees shall execute an undertaking to serve theBank for a minimum period to be specified in the appointment letter from the date of their



4

appointment or confirmation or such other date as the Bank may decide. In the event of any employee committing a breach of this undertaking, the employee will pay to the Bankfor time, money and effort spent on his on-the-job training being amount determined by theBank, provided that –

i. The Chief Executive may, at his sole discretion, waive recovery of such amount in any

particular case for all gradesii. The Head of HRD may waive / reduce recovery of such bond amount upto OG-I.

6-b. An employee shall not resign / separate from the service of the Bank without giving 3months prior notice in writing, of his intention to do so, failing which he shall be liable to payto the Bank a sum equal to his substantiative pay for three months, provided that–

i. TheChief Executive may, at his sole discretion, waive recovery of such amount in anyparticular case, for all grades.

ii. TheHead of HRD may waive / reduce recovery of such notice pay upto OG-I.

7. Employees shall be bound and governed by all rules relating to leave, travelling, and all other

matters relating to employment as may be framed by the Board of Directors/Chief Executive of theBank from time to time.

8. Employees shall be responsible and fully accountable to the Bank or their immediate superior inthe Bank for all monies, drafts, securities, account books, registers, papers, vouchers, documents,and goods and chattels or any other property or assets which may be received by them asemployees of the Bank on behalf of or on account of the Bank. Upon leaving the service of theBank, the employee must deliver and give possession of all the aforementioned items to hisimmediate superior at the Bank.

9. Employees shall furnish to the Bank such surety for faithful discharge of their duties, as the Bankmay require from time to time and in the event of death, insolvency, insanity, imprisonment or other

legal disability of the surety, the employee shall promptly inform the Bank in writing about it. Anyguarantee provided by a surety on behalf of any employee shall be returnable not less than sixmonths after separation of such employees service if there is no claim against the surety thereunder.

10. Employees who have provided to the Bank any cash security or any other tangible form of securityfor faithful discharge of their duties shall be entitled for return thereof not less than six months after their leaving service of the Bank if there are no outstanding dues against them.

11. Employees shall observe the strictest secrecy and confidentiality as to the accounts of allcustomers of the Bank and as to all the transactions of the Bank, of whatsoever description, with itscustomers, correspondents, shareholders, or any other person. The employee shall not divulge anyinformation nor the status of any of such accounts, nor the number of shares held by any person or

persons, nor the nature of any interest that person or customer may have in the affairs of the Bank.The employee shall also not divulge any credit information of any person, firm or corporation whichhe may acquire as an employee of the Bank, or use any information whatsoever nature which hemay receive as an employee of the Bank for any purpose other than for the advancement of theinterest of the Bank, and he shall at no time divulge any such information to any person not entitledthereto. Secrecy and confidentiality in relation to banking matters and operations shall bemaintained at all times.

12. Employees shall maintain a high standard of dressing and appearance. It is mandatory for all malestaff other than NCS to wear a tie during office hours. Female staff members should be attired in a



5

decent way. NCS are required to wear a uniform at all timesduring office hours. Every employee isrequired to wear Banks identity card during office hours.

13. The Chief Executive of the Bank may, at his discretion from time to time, transfer the services of anemployee from his place of posting to any other place of posting within or outside Pakistan.

14. The terms of the Contract/Letter of appointment shall be treated and read as a part of and inconjunction with these regulations.

15. The Banks Code of Conduct (Annexure ‘P1) is to be executed by all the staff annually. Additionally, staff posted at Banks Treasury Division will be required to execute Code of Conductfor Treasuries of Banks prescribed by the State Bank of Pakistan (Annexure ‘P2).

16. Every employee, below EVP, is required to mark his / her attendance.

17. Working Hours will be determined by vicinity / business need. It is important to ensure that requiredhours are worked and also that excessive hours are not consistently demanded.

/2011 dated 02.11.2011)



6

Chapter III

Employment

Part – I Recruitment, Promotion & Placement Procedure

I. A. Recruitment Of Officers / ExecutivesThe recruitment procedure for the Officers/Executives has been formulated and approved by thebanks Board of Directors in terms of which:

• Power to make appointments has been delegated by the BoD to the Chief Executive whomay delegate such duties and responsibilities to the Executive Committee or any other subcommittee comprising of Senior Executives of the Bank.

• Appointments to all grades may be made either by direct recruitment or by promotion andon such terms and conditions as may be decided by the Chief Executive who maydelegate such duties and responsibilities to the Executive Committee or any other subcommittee comprising of Senior Executives of the Bank.

• Annexure ‘K-1 titled “Delegation of Authority / Extent of Power for execution of Policy” hasbeen added in the HR Rules & Policy Guidelines.

I. A.i. Recruitmentof Close Relatives

a) The Bank does not prohibit employment of close or blood relations of currentemployees, provided it is strictly on merit, no conflict of interest is likely to ariseand approval is obtained from the competent authority as per Annexure K-1. Closeor blood relations are defined as husband, wife, child, parent, brother, sister, firstcousin of staff / spouse, niece / nephew, parents in law, brother /sister in law, son/ daughter in law.

b) Candidates once appointed should not be placed in the same Branch / Division inwhich his close / blood relation is already working.

c) All candidates at the time of interview are required to disclose their relationship, if any, with the existing staff on the prescribed Bio Data Form.

1. Identification & Approval of Job/Post

a) The Branch Manager/Regional Office/Divisional Heads, as the case may be, shallidentify the job requirements and send their recommendations to HumanResources Division (HRD)at Head Office.

b) HRD Division will examine, assess and evaluate the recommendations and obtainapproval of the Chief Executive / Competent Authority for the required posts.

c) The Chief Executive has the authority to determine the classifications of any newposts that may be created.

2. Source Of Recruitment

The Bank may make appointments as may be required from time to time, either by directrecruitment, through third party contract or by promotion from the lower cadre. Directrecruitment could be through advertisement, executive search service, referrals or drop inCVs



7

3. Selection Processa) Initial screening of the applications

i) Education/Qualification wise.ii) Experience wise.

b) Careful scrutiny of the applications selected are made for Interviews with special emphasis

on professional experience, integrity& family background of the candidates.

c) The Interview Committee for various functional positions and corporate titles shall beconstituted from the list of authorized Management Personnel as approved by C.E.(Annexure K-1 para I refers)

At least 3 members will be co-opted into the Interview Committee, out of which Head of HRD will be a permanent member. The committee will finalize definite comments and theviews of the majority will be considered for forwarding recommendations to the competentauthority.

d) Prior to issuanceofappointment letter Human Resources Division will obtain e-CIB reports

of prospective employee(s). Candidates with clean reports will be considered for hiring,meaning thereby that write-off or overdue liability will not be considered for hiring.Exception(s), if any, to this effect would be at the sole discretion of the Chief Executivewhich will be subsequently ratified by HR&RC.

4. Selection Criteria

a) For Key Executives

The appointment of key executives shall be made in line with the Banks policy & guidelines laid down bythe State Bank of Pakistan. For all hiring the minimum educational requirement will be bachelors degree

from recognized business school/university.

Criteria for Hiring other than Key Executives:

In view of the Banks need for injecting fresh talent into the system due to business and network expansion,hiring a mix of fresh graduates and experienced bankers will play a significant role, and therefore, the hiringcriteria will entail following minimum requirements:

The minimum experience for hiring at any level in the Bank will depend also on the aptitude, attitude andpotential for learning & growth an individual exhibits or possesses, and not solely on the years of experience that one has to his/her credit.

However, grade wise criteria for experience will be as follows:

(b) Manager & above

i. Preferably 5 - 10 years of relevant experience or as per the functional / positionrequirement.

(c) OG III –OG-I

i. Preferably possess relevant experience of minimum 2years to 5years or as per functional / position requirement. However, based on the potential of a candidate the



8

same may be relaxed by Head of Human Resource.

ii. Fresh graduates (local / foreign universities / business schools, upto 28 years of age, may be hired as OGIII / OGII based on their qualification, attitude, aptitude andpotential.

(d) Junior Officer (entry level position in the Bank):

Fresh Graduates:

These candidates may be fresh graduates, may or may not have relevant experience, however, based ontheir potential and aptitude and upon meeting the under mentioned criteria they may be hired as Junior Officers:

i.Clearance of Written Assessment Test

ii.Maximum 25 years of ageiii.Preferably fresh graduate i.e. without any professional experience

iv.Computer literate.

Experienced Bankers:

However, in case where individuals meet the education and computer literacy criteria with reasonablerelevant experience, the age criteria may berelaxed.

(e) For Junior Officer (entry level position in the Bank):

These officers will be inducted in the permanent cadre at entry level position as Junior Officers (JOs) with

six months probation.

Hiring of these JOs will include acceptance of minimum 3 years service agreement prorated over the period(for e.g. service agreement amount / 36 months) effective from the date of their joining in the Bank.

i. Clearance of Written Assessment Testii. Maximum 25 years of ageiii. Preferably fresh graduate i.e. without any professionalexperienceiv. Computer literate.

The Chief Executive, at his sole discretion himself or through his designated officer may relax the above

criteria in deserving cases.

I.B. Recruitment of Non-Clerical Staff

a) Non-clerical staff i.e. messengers, drivers, electricians, generator operators, sweepers etc.shall be recruited on contractual basis through Contractor.

b) The Contractor shall verify the antecedents of candidates carefully and thoroughly to ensurethat persons with dubious record do not enter in the service of the bank.

c) The Contractor shall ensure that the Candidates are reasonably intelligent, and should have



9

the ability to read, write and medically fit.

d) Minimum qualification will be Matric relaxable by the Chief Executive at hissole discretion insuitable cases.

I.C. Recruitment of Retainers

Retainers may be engaged specifically on contract for periods ranging between 6 monthsto three years. They will only be entitled to the monthly salary as per the terms of contract,and no other benefits would be admissible. They should at least be graduates withminimum 5 years experience in their field. Their contracts may be renewed at thediscretion of the management.

Annexure ‘K-1 titled “Delegation of Authority / Extent of Power for execution of Policy” (attached)has been added in the HR Rules & Policy Guidelines.

5. Appointment Formalitiesa. Upon successful selection, the Bank will issue offer / appointment letter to the candidate.i. Specimen at Annexure ‘Q & Annexure ‘R respectively.

b. Before joining the Bank service, every candidate will be required to complete theappointment formalities. List is at Annexure ‘S.

c. Job description of the candidate will be prepared for personal file by the concernedDivisional / Zonal Head where the candidate will be posted and a copy forwarded to HRD.Subsequent, updating or change in Job description would invariably be attached withPerformance Appraisal Form every year.

d. The Bank will arrange verification of degrees of all newly recruited staff members fromtheir last institutes. Confirmation of service / next renewal of contract will be executed after receipt of degree verification. In case of fraudulent degrees, the services of the concernedstaff will be terminated with immediate effect.

Amendment - Part I - Employment, Point 3 deleted & e 4-a d, point 5-d. added vide memo ref: HO/HRD/CIR-015/2011

dated02.11.2011)

6. Confirmation of Services:Normally six months, may be waived / relaxed / extended by the competent authority approvingappointments of the relevant grades. Employee will be communicated, in writing, about deferment /extension or confirmation of service.

7. Hiring of Management Trainee Officers:Habib Metropolitan Bank believes that having a competent & well developed workforce is aprerequisite for maintaining strong institutional presence as well as hierarchical structure.

Recruiting bright and dynamic fresh graduates from prominent business schools and properlytraining them to ensure availability of adequate reinforcement for internal elevations as well asplanned/expected separations in the bank within the coming years is a continuous requirement of the Bank.

Objective of having MTO program is to:

Ensure focused efforts are planned and implemented towards attracting and retaining thetalent.

Make a pool of trained professionals available to manageanticipated/unanticipated talent gapsat middle management level in the Bank.



10

Have focused approach towards facilitating an environment, highly conducive to learningcombined with interactive practical exposure to create an experience that challenges theofficers intellect to perform and grow with the institution.

Offer this great opportunity, for career progression and job satisfaction, to those who have theability and enthusiasm to play a key role in the future development of the Bank and make a

career in the ever challenging environment.

Scope

As the hiring of MTOs will be highly dependent upon elements like expansion plan, expectedseparation/s and planned elevations within the forthcoming years, the MTOs may be hired for segments/ divisions wherever such requirements are anticipated.MTOs will be hired, as per talent needs of the Bank and based on business requirements and theBank will reserve the right to place / transfer their services to different Divisions / Zones across thenetwork, wherever required.

Eligibility Criteria:

Qualification: Minimum 15 years of education, including but not limited to BBA Hons, BS, M.Sc.(in relevant field), MS, MBA, M.Com, from accredited universities.

- The preference will be to hire individuals with throughout first class academic career i.e.at least 70% marks OR, 3.0 CGPA (as the case maybe). Candidates awaiting final resultsmay also be considered for the position.

Age: Maximum 28 years

Internal Candidates: The existing employees who meet the eligibility and application criteria willbe considered for the MTO position, and will be required to route their applications throughrespective Head of Divisions/Zones and undergo the same selection process. However, theselected candidate/s will be internally elevated by way of upgrade in their position, grade, salary &perks as offered in the MTO Program. Moreover, the provident fund, gratuity, staff loan, leaveentitlement will carry forward from the date of elevation. However, the service agreement will besigned as per MTO Program.

All candidates will be assessed exclusively on merit; therefore, any effort to influence the management‘sdecision will disqualify respective candidature.

Recruitment & Selection

The MTOs will be hired in batches as per the Banks need and desired quality. Profile collection exercisewill be undertaken through either Career Fair/s or Placement Offices at the prominent business schools.Screening the profiles of shortlisted candidates will be conducted as per the selection criteria and theselection will take place by way of Interviews (Initial Interview by HRD, then the authorized Panel & finalinterview by the Chief Executive or whosoever he authorizes on his behalf).The Panel for interview will consist of Head of Divisions (as selected by the Chief Executive), including themandatory representation of Head of Human Resource Division.

Once the candidates will qualify the Initial Interview by HRD & the Panel, the assessments will be compiledand qualifying candidates undergo the final phase of interview with the Chief Executive or whosoever is



11

designated by the CE). Upon qualifying the final interview, candidates will be offered the MTO positionbased on identified package and grade with relevant joining formalities within prescribed timeline andformats.

The Management Trainee Officers will be permanent employees of the Bank, therefore all Rules &

Regulations relating to their employment, other than the ones stipulated in this document, will be the sameas that for the other employees of the Bank.

Management Trainee Officers

Grade Offered Officer Grade IIFunctional Title MTO

Confirmation of Service Successful Completion of 1 year

ServiceAgreement

3 years for MTO Rs.300,000/- The agreement will be enforceable

upon resignation from the position before completion of the agreed

period prorated on 36 months. The request for waiver only for

genuine reasons may be considered at the sole discretion of theChief Executive.

Compensation Package will be the prerogative of the Management based on educational qualification,market practice and or banks discretion. Upon successful completion of 1 year service, these officers willbe confirmed and awarded 1 flat increment (the amount will be based on the managements discretion).

In addition, the MTOs will be entitled to the following perks and benefits as per the Banks policy:

a) Group Life Insuranceb) Medical Insurance (inpatient for self, spouse & children)

c) Bonusesd) Leave (Privilege & Medical), Leave Fair Assistancee) Provident Fund (upon confirmation of services)f) Gratuity Fundg) Staff Finances (House, Personal)

Learning & Development:

The program will begin with Orientation to familiarize the MTOs with the Banks Vision, Mission Values,Banks organizational structure, culture and relevant policies. After orientation the officers will undergo apredesigned 4 months training program covering Banks core functions and other critical areas including

but not limited to General Banking/Trade/Credit/Treasury/Products etc.

Thetraining schedule will be a combination of in-house theoretical in classroom and ‘On the Job training inDivisions / Zones including frequent periodic evaluations and feedback from the relevant line managers.There will be several classroom evaluations to gauge their knowledge over concepts & procedures taughtas well as inclination towards a specific function. Results of these evaluations will be compiled and sharedperiodically with the officers and also analyzed for their final postings.Each MTO will be assigned a mentor from the panel of mentors selected by the HRD, so that for anyperformance / environment / culture related concerns, the MTOs feel at ease to discuss with their mentor/s.



12

The final evaluation covering all areas of classroom learning as well as practical experiences will beconducted at the end of the training period.The final interview with the Chief Executive will be held to determine the deployment based on need in aparticular function. However, the top performing officers may be considered for selective posting subject toavailability of vacancy in the desired area.

Reward, Growth & Retention:

Based on learning performance and final evaluation the officers will be ranked as top performer/s andrecognized either in cash or kind, as deemed fit by the Bank. In the first annual appraisal they will beawarded a flat increment. However, upon their placement, the forthcoming annual appraisal will beundertaken (based on the objective & subjective goals) by the respective Division/Zone in coordination withHuman Resource. It will also be ensured that in the subsequent appraisal earned rankings of these MTOsare not compromised due to any quotas involved in the appraisal process.The pace of growth, in terms of job enrichment, rotation and professional development of these MTOs willbe much accelerated, as they will be provided ample opportunities to prove their mettle through high

performance, therefore they will have relatively faster pace of career progression as compared to other employees. The promotion criterion for a MTO will be treated as exceptional i.e. the officer ranked HighPerformers category may be recommended for promotions upon 2 years of service with the Bank and evenearlier if he/she qualifies IBP ISQ Exams, all 3 stages in first attempt.It will be however equally critical for all stake holders i.e. HRD / Divisions /Zones to have proper JDs, Goalsand interim feedback process in place to enable career growth and progression for efficient retention of allemployees including MTOs.



13

Part - II –Promotion and Increments

To achieve the highest degree of excellence both in customer service and professional efficiency it is theendeavor of the management to put maximum effort for development and personal growth of eachindividual working for the bank.

Since the Bank’s success depends significantly on effective job performance, the Bank has a policy of formal annual review of job performance and progress whereby performance of an Officer and Executive isgraded in Performance Appraisal Form (PAF) at the close of each Calendar Year by the immediatesuperior of the Officer/Executive concerned. The same has to be endorsed by the Departmental / ZonalHead.

Based on PAF recommendations, the Chief Executive / Competent Authority (Annexure K-1 para II refers)may approve the pay increases and promotions of each staff member. Generally, promotions andincrements will be based on merit and length of service where job performance is rated as satisfactory or better.

The criteria for the Promotion Policy are as under:

Generali. All cases of promotion shall be considered on merit.ii. No employee shall have a claim to be promoted to any particular post or grade by virtue of

seniority alone.iii. Resolution of grievances related to Performance Management will be the responsibility of

concerned BM/UH/AH/DH/ZH. In case of non-resolution, issue received in writing, will beaddressedby HRD.

Promotion Cases

1. For all promotion/salary adjustment cases, Promotion & Compensation Review Committee[P&CRC] will be formed each year with the Approval of the CE.

2. Criteria for Promotion under Normal cases :ForJunior Officer to Manager

- Minimum 3 years in grade

- Maximum Age 58 years

- Current year ranking ‘Aor‘B and last year ranking should not be D

- Minimum educational qualification Graduation

- Recommendation of Zonal Head / Divisional Head

- Clearance by the P&CRC.

Positiveconsideration:- Acquiring of Professional Qualification during the year under review

- Elevation in Job Responsibility Levels during the year under review

For Contract to Regular Staff Junior Officer to Manager [Same grade]- Minimum2 years Service- Maximum Age 55 years

- Current year ranking ‘A or ‘B and last year ranking should not be D- Minimum Graduate- Recommendation of Zonal Head / Divisional Head

- Clearance by the P&CRC.



14

3. The P&CRC will interview and approve all grades up-gradation of officers upto Manager level. Wherever deemed necessary, the P&CRC will also interview recommended officersupto Manager level before deciding the quantum of raise for salary adjustments.

4. The P&CRC will interview the cases of up-gradation & salary adjustments of Chief Manager & above, and forward their recommendations to the CE / ED for review /

approval.5. Management staff at Head Office / Zonal Office / Area Office will be assessed / ranked

separately by competent authority in panel interview, whereas, Head of Audit will beevaluated by the Audit Committee.

6. Promotion cases for EVPs & SEVPs will be decided by the Board of Directors.

Branch Managers Increment / Promotion

- For selective elevations of Branch Managers, objective assessment / justificationwill have to be prepared by the respective Zonal Head for discussion with P&CRC.

- Branch Managers are to be rated in categories–A, B, C & D.

•Basis of categorization would be :-

a) Financial statistics of the branch and multiplicity of tasks

b) Period for which an officer has served as Branch Manager in this or any other branch of HABIBMETRO(Total tenure as Branch Manager to be counted)

c) Audit category of the Branch

d) Potential to develop the branch & / or to manage large branch.

e) Versatility in all areas of operations / economic segments

f) Capability to groom staff and in particular identify assess and develop potentialBranch Managers.

Special Cases : [Promotion, Salary Adjustments & Change of Cadre]

The aim is to have a pool of most talented employees, prepare them for future managementresponsibilities and to create resource pool for succession planning.

To reward fast trackers, key contributors and critical resources, the Management has givendiscretion to the Zonal and Divisional Heads to identify the most meritorious staff members.

Out of turn promotions, change in status from contract to regular and special cases of salaryadjustments should be based on objective justifications like goals viz-e-viz accomplishments andevidence for such special treatments.

i. TheChief Executive may, at his sole discretion, approve cases for all grades.

ii. ThePromotion & Compensation Review committee may approve the cases uptoManager grade.

Increment / Promotion Exercise Schedule:

Increment / Promotion Exercise Schedule is placed at Annexure ‘T. This, however, is subject tochange, whenever deemed necessary by the Management.

Annexure ‘K-1 titled “Delegation of Authority / Extent of Power for execution of Policy” has beenadded in the HR Rules & Policy Guidelines.



15

III –Placement

The Management shall place employees in various postings / locations according to their suitability therequirement of the Bank.

IV–Transfer / Rotation

Job Rotation Policy will be implemented with a view to providing opportunities for career development andimplementation of Internal Controls.

To ensure compliance, branch banking / front line employees with sensitive and risk taking assignments willbe rotated from one work station / branch to another, preferably within five years or within a practicaltimeframe to ensure that concerned employees do not have absolute control over such areas/activities.

Job rotation shall not apply to employees where specific technical skills/expertise arerequired.

This exercise will be under the direct responsibility of concerned AH / ZH and monitoring / coordination willbe done by HR. All exceptions to the policy will have to be approved by the CE.- Transfer /Rotation made effective vide memo ref: HO/HRD/CIR-003 dated 16.3.2011)

IV A- Relocation Policy [Inter City]

Purpose of Policy : To provide incentive to staff members in order to build capacity,improve productivity and provide the opportunity for career development

One Time Relocation Allowance : 2.5 times of current gross salaryRelocation period : 2 years, after which, the employment in the host city will be

deemed aspermanent.

Admission Fee : Reimbursement of School / College Admission fee, equivalent of one Month basic salary or actual payment, whichever is less,directly to the concerned school / college, on receipt of feechallan.

Travel Entitlement : One way fare to the employee and his / her immediate family[Spouse & Children]. Class / mode of travel will be as per gradeentitlement of the Bank.

Temporary Accommodation : For 30-days [Max] directly to the Hotel / Guest house. Type of

accommodation will be as per HR Rules & Policy Guidelines.Joining period : 07 Calendar days

Employee initiated Transfers : Not in the purview of the policyUpon Separation : If an employee leaves before completion of 2-years, he/ she will

be required to reimburse 75% of total expenses incurred.

Approving Authority : Chief Executive

Any exception to the above would be at the discretion of the CE. (

–Point IV Transfer & Rotation amended as

’Relocation Policy ‘Inter City’ added vide



16

V–Employees Recognition

Staff members are recognized by introducing awards under each of the following categories:-

1. “Service Champion” of the month.

2. “Employee of the Month–Deposit Mobilization.”

3. “Employeeof the Month–Business.”

4. “Employee of the Month–Head Office/Service Centers.”

5. “Best Suggestion Award.”

While nominations for the first four categories are to be received from the Divisional/ Departmental/Zonal Heads/Branch Managers and decided by the Staff Awards Committee, nomination for thefifth category is to be decided by the Suggestions Committee.

Monthly nominations are expected to be received over the email addressed to

[email protected] or before 7th of each succeeding month from Divisional / ZonalHeads. The employee recognition committee will consist of the members, duly approved by theCE.

VI–Service AwardUpon completion of 10 years of service, a congratulatory letter / plaque will be presented to the qualifyingemployee. Point VI Service Award has been added vide memo ref: HO/HRD/CIR-015/2011 dated 02.11.2011)



Habib Metropolitan Bank Limited


17

Chapter IV

Compensation

Part – I

CLASSIFICATION OF EMPLOYEES & PAYSCALES

A. Inline with sound HR practices our salary structure is revised every year based on market trend and our HR Budget.

Fixed allowance and pay scale are annexed as Annexure ‘B

With the following objectives, HRD maintains a centralized payroll unit for the entirenetwork:

Objectives:

- Minimizebranch admin work

- Improve control and monitoring through proper handling

- Mitigate operational risk

- Timely deposit of Income Tax amount with Government Treasury

- Proper recording and reporting of Income Tax data to the Federal Board of Revenue

- Reconciliation of Salary

- Proper charging of costs to resource centres

- Proper recording of all entries related to salary & benefits

- Proper calculation of income tax

- Proper deduction of EOBI contribution of employer & employee

- Timely deposit of EOBI contribution [employee & employer] to Government Treasury

- All salary related payments through hPLUS built-in options

- Availability of data at one point for all stakeholders

B. The centralization Payroll unit at HR will issue salary slip as per Annexure ‘C.





18

Chapter IV

(Part-II)

STAFF BENEFIT SCHEMES

The following are the benefits which Chief Executive is authorised to change, amend, add or delete fromtime to time.

Employee Loans

Employee loans as enunciated under would be provided to the employees of the bank. The overall loanallocation limit which would be reviewed annually would be determined by one of the following criteria asper managementdiscretion:

10 Percent of equityor

1 Percent of BankDeposits &whichever is less.

The loan allocation limit has to be annually fixed by the Board of Directors based on the equity / depositfigure as of December 31 of the preceding year. This amount would be fixed for a period of one year fromJuly to June.

In order to minimize branch admin work and to exercise effective controls, the staff loans are centralized atHRD for the entire networkTypes of Loan

I. House Loan

II. Staff Loan

I. House Loan:

This loan will be disbursed for either construction of a house or purchase of house/apartment. Theloan is to be a facility provided to confirmed employees on the following terms and conditions :

1. Upto100Basic Salaries.

2. Loan repayment period would be upto 20 years (240 equal monthly instalments) or remainingservice upto the date of retirement, whichever is earlier. However, for SVP and above, who havealready crossed 50 years of age and are unable to meet the prescribed debt burden ratio,relaxation may be given and their installments worked out accordingly. However, at the time of retirement, the amount outstanding will be adjusted from their end of service benefits.

3. Following rate of mark-up would apply:

Upto Rs. 1,000,000/- 3%

Between Rs. 1,000,001/- to Rs. 3,000,000/- 5%





19

Between Rs. 3,000,001/- to Rs. 10,000,000/- 9%

Amount exceeding Rs. 10,000,000/-but within100 basic salaries 3 months KIBOR

4. Loan in excess of entitlement would be at commercial terms at the discretion of the management.

5. Staff is expected to provide from own resources at least 10% of the purchase value of the house /apartment for which loan is required. Loan upto 90% of the purchase value, subject to themaximum entitlementand or as approved, will be provided by the bank.

6. The loan would be secured by equitable mortgage.

7. To be eligible for the loan an employee must have served the Bank for at least 3 years. However,in case of employees inducted from other banks the above minimum service condition may becondoned by the appointing authority.

Moreover, loan takeover will be based on terms and conditions approved at the time of employment, remaining within the entitlement in Bank Policy.

8. Take home salary should be at least 50% of gross salary after all deductions including tax.

9. Property Insurance for House Building Loan is mandatory. 33 percent premium to be paid by the

staff and 67 percent by the bank.

10. No waiver of mark-up payment would be permissible.

11. An employee may avail the staff house finance facility twice in total service period. The competentauthority will be Head of HRD for approving the loan on the recommendation of Zonal / DivisionalHeads, provided that the terms & conditions of HR Rules & Policy Guidelines are complied with.

i. The enhancement to be considered as fresh loan, permissible after 5 years of initialdisbursement; to be allowed for construction of house or change of security. The competentauthority will be Head of HRD for approving the loan on the recommendation of the

Zone/Divisional Heads, provided that the terms and conditions of HR Rules & PolicyGuidelines are complied with. However, for the direct reports of CE the request will beapproved by the Chief Executive himself. Any subsequent sanction (other than enumeratedabove) or additional enhancement of House Finance in every special case may only begranted at the sole discretion of the CE.

ii. Top up to the extent of 10% of the loan amount disbursed or maximum Rs.500,000/- may beallowed after 5 years of initial disbursement of the Staff House Finance for renovation only. Anindividual mayavail top up(s) only 2 times during a loan tenure.

12. Any deferral / waiver / change of security in respect of formalities of HBF deemed justified will be

approved jointly by Divisional Head / Zonal Head and Head of HRD. For direct reports of CE, hemay authorize the same.

13. All loans sanctioned in respect of construction on plots will be disbursed on the followingconditions:

a. Legal advice from our in-house Legal Divisionb. Payment to be released in three tranches





20

c. Those employees, who avail the Staff House Finance for purchase of land andconstruction of house thereon, will have to complete construction of the property within two(2) years time. For initial 2 years the employee will have the option for repayment of markup and principle or markup only. However, the total repayment period of the loan willremain unchanged in either case.

- For Purchase of Plot

- For completion of the construction upto roof level

- For completion of the house in all respects

14. Before disbursement of Staff House Building loan, the Bank will obtain Search Certificate of property and e-CIB of the borrowing staff.

15. Sanction Advice will be acknowledged by every borrowing staff.16. The finance is allowed for a house, which should be used by employee and his/her family members

only. The house or any portion of it must not be rented out without prior and written permission of the Chief Executive.

17. Balloon payment and revision of monthly instalment may be allowed to employees, upon request,to facilitate early recovery of the loan.

18. Last three years ranking should not be less than Good.

II. Staff LoanTo be provided to all staff on the following terms and conditions :

1. To be eligible for the loan an employee (including NCS) must have served the bank for at least oneyear.

2. The maximum loan amount would be 25 basic salaries subject to a clean limit of Rs. 500,000/-.Themaximum loan limit would be extendable to Rs. 1,000,000/- against security. NCS staff will be

eligible for three gross salaries subject to maximum limit of Rs. 35,000/-.3. Loan re-payment period to be 3 years or 36 equal monthly instalments for all regular employees,

whereas, the re-payment period to be two years or 24 equal monthly instalments for all contractualstaff and NCS.

4. The mark-up rate would remain at 2.5%discount over the bank rate for officers and 7% discountover the bank rate for Non-Clerical Staff. However a ceiling is fixed at 8.5% for officers and 4% for Non-Clerical Staff in mark up rates.0% mark-up rate would apply if NCS opt to repay their principlein 12 equal monthly instalments. However, for repayments beyond 12 months, existing rate wouldapply. Mark up on Staff Loan would be reviewed if the bank rate exceeds 12.5% or if bank rateequals to or falls below 7.5%.

5. No waiver of mark-up paymentwould be permissible.

6. Take home salary should be at least 50% of gross salary after all deductions including tax.

7. The Loan limit may be reviewed after 2-years from the date of disbursement unless adjustedearlier.

8. Before disbursement of Staff loan, the Bank will obtain e-CIB of the officer.

9. Sanction Advice will be acknowledged by every borrowing staff.

50% of the Staff House Building Loan

or 90% of Forced Sale Value of plot,

whichever is less.

50% of the remaining amount

Remaining Amount





21

10. Balloon payment and revision of monthly instalment may be allowed to employees, upon request,to facilitate early recovery of the loan.

III –A. CarFacility

1. All AVP – SVP and EVPs- SEVPs (for their second cars) and Branch Managers below AVP grade, by

virtue of their position, areentitled to receive car allowance as per schedule at Annexure ‘D.

2. As one time measure, existing officers from AVP to SVP level & EVPs & SEVPs (for their second car)as well as retiring officers, for the self maintained cars in their possession, will have the option topurchase the same at 1.75% of the cost of car multiplied by the remaining months upto completion of 60 months.

They [excluding retiring officer] may either pay in lump-sum or avail vehicle loan facility for settlementof amount derived as per above formula by 31-Dec-2011.

3. In instances of separating officers, they will have the option to purchase their self maintained cars at

2.25% of the cost of car multiplied by the remaining months upto completion of 60 months.

Official Cars

4a. All Functional Heads / Zonal Heads will be provided with Bank maintained car, as per their entitlement.However, Functional Heads [below EVP grade] will have the option to either opt for Bank maintained car ORCar Allowance in lieu thereof.

4b. By virtue of theassignment, all Area Heads will be provided Bank maintained car (Toyota Corolla XLI or equivalent). However, in case of change in assignment, the car will have to be surrendered to the Banks

Admin & Security.

5. The sale of official cars in the use of executives would be at the sole discretion of the management. Atits discretion, the management may opt for tender / market negotiated sale.

6. Provision of official car, other than entitlements detailed above, would be at CEs discretion.

7. Car Allowance will be at the discretion of the management and will be reviewed as and when deemednecessary.

8. Bank provided cars will be replaced at the CEs discretion.

III –B. VehicleLoan

1. All employees i.e. Manager & above and branch managers [upto CM], upon confirmation of service or

in case of contractual employee upon completion of initial six months, will be entitled to avail the facility.

2. Amount of loan will be equal to the following benchmark cars, subject to 50% Debt Burden Ratio.

SEVPs Toyota Corolla XLIEVPs Suzuki Cultus





22

SVPs Toyota Corolla GLIVPs Toyota Corolla XLI

AVPs Suzuki CultusMGR / CMGR / Branch Managers [uptoCM grade] Suzuki Mehran

Note: At any given time, Bank will finance one car only.3. Markup

i. For BMs(upto CM grade) / AVP & above SBP Discount Rate

ii.For MGR / CHMGR(other than BMs) 5%

4. Tenure of the loan would be 6 years or date of retirement, whichever is earlier.

5. If an employee avails auto loan facility, the same will be reviewed on earlier adjustment but not before

completion of 3 years.

6. Individuals will be required to pay registration fees [incl. WHT on purchase of vehicle], premium for comprehensive insurance and ensure endorsement of HPA clause in Banks favour.

7. For all staff loans, in case of separation, the loan will become payable in full. However, until fulladjustment, the same would be treated as a commercial loan at commercial rates with effect from thelast working day at the Bank.

8. Under the policy, employee will not be allowed to purchase a car older than 3 years. In this case, the

Bank will grant loan upto 80% of fair market value of the vehicle.

9. Loan in excess of entitlement would be on commercial terms at the discretion of the management.

10. On receipt of auto loan application approved by HRD, Consumer Finance Division will ensureprocessing and completion of documentation.

11. For calculation of Debt Burden Ratio of all loans, car allowance will be taken into consideration.

12. Loan approving authority will be Head of HRD.

13. This policy will be effective 01-October-2011.

14. Exceptions, if any, will be at the discretion of the CE.

Note: Detailed procedure for applying & processing of vehicle loan is attached.

(- Part II- Staff Benefits Schemes, Item No.III replaced with III-a Car Facili ty. and text replaced, III-b.

IV. House Furnishing Facility

The facility would be providedfrom Grade AVP upwards, and the limits are as appended in Annexure–E:

The following conditions would apply with respect to House Furnishing Facility.

1. The facility can be availed for four years. Employees who have already availed the facility would be

eligible for a fresh facility after a lapse of four years.

2. An individual will be entitled to claim difference of house furnishing facility in case of promotion on

a ONE TIMEbasis. Subsequently, however, the fresh facility will be available only after completion

of four years from the initial draw down and after adjustment of any written down value.

3. All executives AVP & above upto 60 years of age will be entitled to avail this facility.





23

4. In case of separation, before completion of 4 years, the concerned employee will have to repay the

outstanding amount on pro rata basis.

5. Advance against furniture will be created and subsequently adjust the same from monthlyallowance i.e. Applicable limit divided by 48 months.

V. Provident Fund Trust Scheme

All confirmed/regular staff members are eligible to contribute 10% of basic pay every month. Thebank contributes equivalent amount every month. The fund balance plus accumulated profit isrefunded to the employee upon his ceasing to be in service of the bank.

VI. Gratuity Trust Scheme

• The bank maintains a fully funded and approved Gratuity Scheme for the employees.

• All confirmed/regular employees with minimum service of 5 years are eligible for thebenefits of this scheme, subject to Gratuity Rules except those with adverse reportsagainst them

• The amount of Gratuity is payable at last drawn basic pay, i.e. one months basic pay for

each completed year of service subject to maximum of 24 months basic pay.

VII. Medical Insurance

The bank maintains a medical insurance (hospitalization) policy with “any renowned insurance company”as approved by CE.

All staff members upto the age of 65 years are covered for actual hospitalization free of charge for surgicalexpenses, accidental injuries, major ailments, maternity care for spouses of employees and female staff,and laboratory tests.

A significant feature of the policy is the coverage for dread diseases.

The list of panel hospitals also available with Human Resources Division and Zonal Heads, comprises of several reputable hospitals in various cities of the country.

Detail of the medical insurance is appended in Annexure–F.

VIII. Group Life Insurance

Group Life Insurance has been enhanced with effect from April 01, 2007 and covers :a) Life Coverage

b) Permanent Total / Partial Disability [Accident] benefits

c) Permanent Total / Partial Disability [By Sickness] benefits

1. Enhanced limits are as per the grades of officers.

2. All regular employees upto 65 years of age are covered as above.

3. Contractual Officers / Executive are covered upto 65 years of age with benefits less 25% of

above for similar grades.

Benefits as a proportion of the

Principal sum insured ranging

from 3% to 100%.

Details in Annexure – G.





24

4. Non–Clerical Staff upto 65 years of age are also covered.

5. The Group Life Insurance scheme would be reviewed once a year.

6. At its discretion the management may charge all / portion of individual cost to the employee.

7. At its discretion themanagement may amend or discontinue the scheme.

8. If any employee wants to opt out of the scheme, he / she should inform HR Division failing which it willbe presumed that he / she has no objection to the above scheme. The coverage under Group LifeInsuranceScheme is as appended in Annexure–H.

9. i. After death / permanent disability of an employee, pending receipt of group insurance funds, thelegal heirs / employee will be entitled to one month’s salary as ex-gratia for the month followingdeath /date of disability.

ii. Pending receipt of claim from insurance company, the employee’s family (legal heirs) / employeemay continue to draw the amount, equivalent to the employee’s salary, in the subsequent months,subject to an undertaking from the legal heirs / employee that the Bank shall recover / appropriate theamounts so paid at the time of final settlement.

IX. Bonus

• At the discretion of the Management employees are granted one basic salary 3 times in ayear on specified dates subject to having completed 6 months of service on the date of disbursement.

• Employees who have completed less than 6 months service are entitled to Bonus on pro-rata basis. Period of 15 days or more is treated as 1 month, while less than 15 days isignored.

• The facility would apply to all regular and contractual staff barring those on special / fixedrate contract.

X. Leave Facilities

a. Privilege Leave

• An individual will be entitled to 30 working days of privilege leave per annum. PL will beaccrued and credited to PL account every two months. During the year, leaves will beaccumulated. However, at the end of the year, the balance would not be more than 60-days.

• Employees will be required to avail mandatory PL of at least 15-days [continuous] everyyear and the balance may be carried over to the next year.

Branch Manager/Area Head/Zonal Head/Divisional Head will ensure that employees under their jurisdiction avail 15-days mandatory leave during a calendar year. In case of non-compliance, they will be required to justify the reason which will only be condoned by theCE.

• Leave preparatory to retirement (maximum 60 days accumulated leave).





25

• Individual can avail ex-Pakistan / Out Station leave upto maximum available balance,subject to prior approval from the concerned ZH / DH. For direct reports, CE will approvethe application.

• Encashment of LPR (if LPR refused by the competent authority) maximum 60 days grosssalary.

Note: Forcalculationof leave,Saturday will beconsideredasaworkingday.

b. Medical Leave

1. The entire medical leave would be with full pay for seven working days. The remaining will becharged to the privilege leave account.

2. Relaxation can be made by the management in cases of serious or prolonged illness andhospitalization.

3. For 3 or more working days leave on grounds of illness, doctors / hospital certificate will berequired.

Note: For calculation of leave, Saturday will be considered as a working day.

c. Maternity Leave45 days continuous leave allowed with full pay. Leave in excess of entitlement would be adjustedagainst privilege leave.Note: Forcalculationof leave, Saturday will beconsideredasaworkingday.

d. LeaveWithout Pay

May be allowed for higher education and in case of major illness / injury for periods not

exceeding two years.

Note: Forcalculationof leave, Saturday will beconsideredasaworkingday.

e. Special Leave

Following Optional Holidays will be allowed to the staff members, other than Muslims, on accountof religious significance:

- Christians - GoodFriday- Easter Sunday

- Hindu - Janam Ashtami- DurgaPooja- Diwali

- Holi- Parsi Staff - Nauroz [Parsis New Year]

- Birthday of Lord Zoroaster [Khordad Sal]

XI. Leave Encashment as Leave Fare Assistance





26

1. 50% of the accumulated unavailed leave may be encashed against equivalent basic pay for thatperiod when availing leave.

2. Maximum 30 days leave can be encashed.

XII. Haj Leave and Ballot

1. Bank will send each year two employees for Haj. The selected employees will also be entitled to

take with him / her one member of the family. The selected employee may also gift his / her

entitlement to his / her parents. Selection of employees for this facility, one from amongst Non –

Clerical Staff and one from Officer upto OGII, will be by ballot. Haj leave would be upto 40 days for

each intending Haji. Any leave over and above this period will be treated as privilege leave. The

Haj leave would commence from the date of departure and end on date of arrival back home,

excluding travel dates.

2. Haj expenses for two persons to be borne by the bank. In addition an amount of 2000 Riyals per

ballot for 40 days stay would also be given by the bank.

3. Staff members who have already performed Haj would not be eligible for the ballot.

4. Haj leave would also be applicable once during the course of service to those intending Hajis who

perform Haj privately. This leave would be 50% of the total leave subject to a maximum of 21

working days. The leave would commence from the date of departure and end on date of arrival

back home, excluding travel dates.

Note: Forcalculationof leave,Saturday will beconsideredasaworkingday.Staff Benefits Schemes –11-2011)

XIII. Uniforms to non-clerical staff

• At present two sets of ShalwarKamiz/Pant Shirts plus one pair of Sandals/Shoes areprovided in summer every year.

• At present two sets of ShalwarKamiz/Pant Shirts plus one Woolen Jersey plus one pair of Sandals/Shoes are provided in winter every year.

XIV. Ex–Gratia Payment

Ex-gratia payment, on case-to-case basis, can be made at the sole discretion of the Chief Executive.

XV. Fuel Limits

a. Monthly fuel reimbursement limits for all EVP & SEVP, as under : -

Category Limit [p.m.]

Senior Executive Vice President 280 liters.

Executive Vice President 240 liters.





27

b. In view of the fact that Zonal Heads / Area Heads are required to frequently visit branches in their area and business calls have to be made to the valued customers, they may be allowed thefollowing monthly fuel limits : -

Category Limit [p.m.]

Zonal Head / Area Head (SEVP) 280 liters.

Zonal Head / Area Head (EVP & SVP) 240 liters. Area Head (VP) 200 liters.

The above limits will change / cease as soon as the concerned Zonal Head / Area Head isreassigned.

For Branches:

The above are branch limits and upon transfer of the Branch Manager or re-categorization of Branch by HO the limit will stand changed / revised / withdrawn, as the case may be.

Basis of Branch Grouping:

Group – I Large Size Total Deposits -above Rs. 2 Bn 200 Ltrs.

Group– II Medium Size Total Deposits - Rs. 500 M–R. 1.99 Bn 160 Ltrs.

Group– III Small Size (I) Total Deposits - Rs. 150 M–Rs. 499 M 120 Ltrs.

Group– IV Small Size (II) Total Deposits- Below Rs. 150 M 80 Ltrs.

Branch entitlements will be reviewed annually based on Dec 31st figures and revised limitswill be made effective April of the succeeding year . Subject to change whenever deemednecessary.

c. Deposit Mobilization Officers / Recovery Officers

Category Fuel Limit [p.m.]Deposit Mobilization Officers / Recovery

Officers50 liters.

d. Other officers may also be sanctioned fuel limits for official work, on a case to case basis, strictlyas per discretion of the Chief Executive.

XVI. Key Allowance:

• Rs. 2,000/- per month payable to Chief Cashier in the Branch who is the Key Holder.

XVII .Shift Allowance:

• All staff posted at “Alternative Distribution Channel” would be entitled to the following shift

allowance in addition to their monthly salaries:

- Evening Allowance [4:00 pm to 11:00 pm] Rs. 200/- per day

- Night Allowance [11:00 pm to 8:00 am] Rs. 250/- per night

- Emergency Allowance Rs. 1000/- per day

- Gazetted / Public Holiday Allowance Rs. 1000/-per day / night





28

- Introduction of Ramadan Allowances* Rs. 300/- per agent

*On duty during Evening / Night

The above allowances may alsobeapplicable to IT Division, wherever required.

Annexure “K-2” enunciates the arrangement for granting / availing any of the facilities under the above staff

benefit scheme, provided these are strictly in terms of the policy.

XVIII .Annual Membership Subscription of Professional Institutes

The bank will reimburse actual cost of annual membership subscription to the professionally qualifiedemployees for the post qualification membership of the institutes mentioned at Annexure ‘L.

XIX .Advance Against Salary”

No staff will be allowed advance against salary more than twice in a calendar year. However the CE mayallow exceptions, if any.

XX. IBP Examination & Membership Fee & IBP Cash rewards

In order to motivate our officers in acquiring professional qualifications i.e. JAIBP / AIBP / Special

Certifications (IBP) incentives at Annexure ‘M is offered to all HABIBMETROstaff members.





29

Chapter IV(Part III)

Travelling & Daily Allowances Rules

1. All travel undertaken by the employees on official duty shall be authorised by the Chief Executive,General Managers or any competent authority (as authorised by the Chief Executive).

2. Following rates shall apply for payment/reimbursement of expenses incurred on the authorized travel.

Description

Travelby Air

DomesticTravel

SEVP & Equiv.= BusinessEVP = Economy +SVP & below = Economy

Intl. TravelSEVP = BusinessEVP = Economy + / Economy (In-case of unavailability of Economy+)SVP & below = Economy

Travelby Train

DomesticTravel

AVP and above: First Class Railway A.C.COfficers : First Class Railway with sleeping berth

Intl. Travel No Provision

Travelby Road

DomesticTravel

• Public Transport or Bank Provided Car or Personal Car (Fuel only)or motorcycle to be paid at Actual upon production of receipt inoriginal (if available)

• NCS in case of emergency may also be reimbursed at actual.


A c c o m m o d a t i o n

DomesticTravel

Own accommodationIn lieu of hotel accommodation:EVP and above: Rs. 5,000 / day AVP - SVP : Rs. 4,000 / day DM - CM : Rs.2,500 / day

JO - OGI : Rs. 1,500 / day

Bank Provided Accommodation

SEVP / President : any hotel, expenses shall be reimbursed at actualSVP - EVP : 5 Star HotelAVP- VP : 4 Star Hotel

JO - CM : 3 Star HotelNCS : Rs. 300/- per day (on self arranged basis)

Incase of stay at guest house or a place less than entitlement thereimbursement will be at actual.

Mini bar/ food, laundry & other out of pocket expenses are notincluded in accommodation entitlement and will be debited from thestaff salary account.

For Female Employees: accommodation as per entitlement andwherever safety reasons require upto 4 star hotel

Intl. TravelSVP & above 4 Star HotelAVP - VP 3 Star HotelCM & below 2 star /tourist class hotel/guesthouse as per

availability





30

3. TA / DA FOR INTERNAL AUDIT STAFF ONLY

In view of the high frequency of Internal Audit visits, usually spanning several months, special incentiveshave been designed for the relevant staff in TA / DA rules as under:

a. Special arrangements for accommodation will be made by the Bank for Audit officers on outstationaudit duty. They will avail accommodation (bed & breakfast only) as per special arrangements by Audit

Division & HRD in pre-selected hotels / guest houses.

b. The per day special daily allowance (annexure I – A refers) will be admissible to them to cover all other personal expenses whatsoever (including conveyance to & from Branch / Hotel / Guest House).

c. Audit Division is to ensure that total expenses of (a) & (b) do not exceed the combined grade wiseentitlement of hotel expenses and D/A as per para 3 & 4 of the Service Rules. (TA & DA rules)

d. For local branch audits, internal audit staff shall be entitled to conveyance allowance during Branch Audit visits as per annexure I – B provided no other reimbursement / fuel expenses are being paid tothem.

HOTEL EXPENSES

The Executives and Officers proceeding on official duty to another station areauthorizedto stay in a hotelcommensurate with their designations their designation/status and claim single room rent for reimbursement on production of hotel bills/receipts.

For all categories of staff upto Vice President level, the maximum limit for Hotel Room rent is equivalent to5 times of their daily allowance.

The Executives from the level of SVP & above are entitled to stay at 5 Star or the best available hotels.Reimbursements will be made on production of original bills.

DAILY ALLOWANCE

Daily allowance according to the designation is admissible to any employee for the authorized period he

remains on tour and returns to his station of posting. The daily allowance is inclusive of all expenses onfood, laundry, other out of pocket expenses and coolie / labor. Conveyance expenses will be additionallyadmissible from existing daily allowance to make it more practical. Conveyance will be paid on actual fromresidence to airport/station and vice versa and from the destined station to the place of boarding or branchand vice versa etc.

e. For local branch audits, internal audit staff shall be entitled to conveyance allowance during Branch Audit visits as per annexure I – B provided no other reimbursement / fuel expenses are being paid tothem.

Description

TA/DA

Domestic Travel

EVP & above Rs. 3000/day SVP Rs. 2000/day AVP –VP/Exec. on Cont. Rs. 1500/day MGR – CMGR Rs. 1200/day OGIII - OGI Rs. 1000/day

JO Rs. 800/day NCS Rs. 400/day

Intl. TravelSVP - SEVP USD 100AVP – VP USD 75Officers – CM USD 60





31

Chapter –V

Performance Evaluation

Increments and Promotions

To achieve the highest degree of excellence both in customer service and professional efficiency, theManagement of the Bank places maximum importance on the development and the personal growth of each individual working for the Bank.

Since the Banks success depends significantly on effective job performance, the Bank has a policy of annual review of job performance and progress.

The Divisional / Area Head /Manager/Officer Incharge of each department reviews performance of eachemployee under him with the staff member individually. Thepurpose of this discussion is both to inform thestaff member of his strengths, weaknesses and managements expectations and also to give him anopportunity to know how he is performing.

Based on performance review and HR departments recommendations the Chief Executive approves thepay increases and promotions of such staff members. Generally, promotions and increments are based onmerit and length of service alongwith job performance which is rated as A/B/C/D/. (Proforma attached as

Annexure–J).

A- OutstandingB- ExcellentC- GoodD- Satisfactory

Every Department / Branch is allocated a 15% quota for A ranking, 40% for B ranking, 35% for C rankingand 10% for D ranking. This is done through a very systematic distribution method which ensures fairnessand complete transparency in the reward system. e-PAF mechanism will increase the transparency andaddress the grievances of the individual related to Performance Evaluation.

However, management staff at Head Office / Zonal Office / Area Office may be ranked and evaluatedseparately through panel discussions and interview with the Competent Authority. These rankings may beindicated directly on the increment sheet instead of Performance Appraisal Form.





32

Chapter VI

Employee Training andDevelopmentI. Employee Training

1. Purpose:To inculcate skills in the employees for improving their performance and productivity. The Focuswill be on equipping the employees with modern concepts and practices of Banking in order for the

personnel to respond to the technological developments of the new millennium.2. Identification of Needs:a) Training Need Analysis [Annexure ‘V]b) Interviewsc) Personal observations at various workstations during visits of the Senior Managers.d) Periodic feedback from/ evaluation of supervisorse) Report of Internal Auditorsf) Planning placement of an officer / executive for an assignment which requires diversified skill

set

3. Training Strategy:

i. The first among the series of the Functional Courses scheduled under the trainingstrategy will be a six months to one year ‘Induction Course for fresh officers –appointees having no or very brief previous Banking experience and posted in thebranches.

Training Program for Job Internees is placed at Annexure ‘W and for ManagementTrainees Annexure ‘X.

ii. The entire course is divided into 3 phases.a) On the job training at the designated branches at various

workstations on rotational basis.b) Classrooms sessionsc) Review and final evaluation by in-house faculty.

iii. This course is designed to offer optimal integration between the theoretical classroomdiscussion and on-the-job training. On its successful completion, a participant isexpected to be well equipped to shoulder responsibilities in branch operations atofficers level.

iv. Structured Functional and Development Courses for experienced officers tobeout sourced.

a) Any other course tailored to the needsb) Seminars/ Workshops organized by external institutions in Pakistan or abroad

for Middle and Senior Management.

Where the Bank, may so deem fit, employees shall execute an undertaking, to serve the Bank for a

minimum period specified in the appointment letter and from the date of their appointment or confirmationor any other such date as the Bank may decide. In the event of any employee committing a breach of thisundertaking, the employee will be liable to pay compensation to the Bank for time, money and effort spenton Training which will be quantified in the form of liquidated damages as determined by the Management.





33

4. Foreign Trainings

All trainings / conferences being offered overseas should be evaluated by the concerned Divisional / ZonalHead and recommended on sound basis keeping in view the following aspects:

• Relevance to the current job responsibility OR planned future position of the participant being

nominated• The candidate should be a permanent employee who should have completed at least three

years of continuous service with the bank

For direct reports, CE will nominate for the courses / training.

The recommendation would then be forwarded to Head of HR and Training for further evaluation as to thefollowing aspects:-

• Training Budget for Overseas Trainings

• No unsatisfactory rating over the last two years

The Head of HR will add his recommendation and forward for CEs decision. Once approved all necessaryarrangements shall be made.

The individual will execute an agreement to serve the Bank for at-least two years, failing which, he / she willreimburse expenditure so incurred by the Bank for remaining service.

Any exceptions to the above policy may be allowed by the CE.





34

II. Internal Job Placement Policy

HABIBMETRO endeavors to grow its resources, whether products & services, technology or the humancapital. The Bank believes in developing its workforce to be competitive and efficient. Human Resource isemployed for most suited positions and it is ensured that they are offered ample opportunities during their work experience to learn, perform, diversify and grow. In order to implement this strategy effectively theBank utilizes certain tools like Job transfers, rotations and redeployments.

As a practice, people have been identified for being potentially suitable for various existing & new positionsand a number of employees placed internally have exhibited exceptional performance.Keeping in view the Banks growth resulting in expansion of branch banking network, the requirement for organic development becomes inevitable, especially for positions in branch banking i.e. the biggestsegment of the Bank, where career progression and development of workforce internally becomes highlysignificant.In order to ensure availability of support and mutual growth at all levels, the line managers are urged toencourage their team members to learn and grow for their personal and professional development.

To further strengthen the concept of internal placement certain factors have been introduced i.e. theInternal Placements will be considered for positions in branch banking as well as number of positions inother functions based on the following :

Eligibility Criteria:

Employee of Habib Metropolitan Bank Ltd, who are regular and performing members of their respectiveteam, whether hired on Permanent, Bank Contract, or 3rd party Contract basis, unless otherwisespecifically restricted for the job placement in subject.

Employee who possesses the education, experience, competencies required for the position

announced, coupled with the willingness / passion to learn and grow with the diversification. The HRand relevant to ensure that such move will not jeopardize any of the existing functions in the Bankrather add value to achieving the overall objectives of the Bank.

Employee who has completed minimum 3 years in the existing function.

Employee who has been ranked ‘Good minimum in the last 2 Annual Appraisal Cycles.

Employees who do not have any disciplinary action initiated against them.

The internal placement will be considered as avenue for development and elevation in job function;however will not imply upgrade in the existing grade, unless absolutely under-graded, or so explicitlyrequired in the position.

Candidates selected will undergo required functional training & grooming for the role whether uponplacement or while on-the-job; HR & Line Manager will monitor the progress of the candidate to ensure therequired level of learning and development of skills is underway as expected.

Procedure:HR will advertise jobs internally i.e. through posting the job on portal, via email and or circular (for allGrades to ensure a fair process takes place to hunt the resource internally unless otherwise criticallyrequired to solicit external hiring)





35

The interested employees may apply for announced Internal Jobs by way of filling out the prescribed format(if any) and forward the same to HRD which should be forwarded to HRD after being duly recommended bythe relevant Zone, Area Head or Unit / Divisional Head. HR will reserve the right to disqualify anyapplication received directly and or not through the relevant Zone / Divisional Head.

HR will shortlist the qualifying applications matching the criteria and submit the data of qualifyingemployees to the panel for interview. Once selected, the employee will be transferred to the relevant Area,Zone/Division for joining and training etc.

The panel will have the following members:

Relevant Divisional Head or Zone Head / Area Head under consensus with the Line Manager (withwhom theposition is available)

Head of HRD

Regular / ContractD/ H or Z / H(with whom

the position isavailable)

Head HRD

C.E

BOD

JO–OG I (other than Br. Mgr.) R A - -

Branch Managers upto OGI R R A

Mgr –SVP (Incl. Br. Mgr.) R R A -

E.V.P. / S.E.V.P - Co-ordinate R AR=Recommendation & A= Approval

In the event the officer needs support to perform during the current cycle, HR will facilitate with coachingand training to enable the officer to develop the desired level of productivity.ReferAnnexure ‘Z- Application formfor Internal JobPlacement.

III. Internship Policy

Objective

HABIBMETRObeing a progressive institution believes in the philosophy of developing human capital fromwithin for its future expansion/growth plans. However, the bank also strongly believes in attracting andretaining human capital for its potential talent pool and better succession planning. As such its policiesencourage on-the-job training opportunities to students and fresh professional graduates through thisInternship Program.

Policy Statement

In order to engage the best suited candidates the Bank runs programs like Management Trainee Officersand Internship Program where students are given opportunities to learn banking in the most competitive &professional environment. The Internships serve as an assessment tool to gauge potential capabilities,competencies and qualities of candidates who may be hired as regular employees after completion of their education. Thus serves as support for the Banks recruitment function.





36

Internship is awarded to under-graduate / post-graduate professional students who need to intern with aFinancial Institution to meet their curriculum requirements. Fresh graduates may also be considered for providing practical experience, keeping in view the Banks requirement for young and capable professionalfor its operations.

HABIBMETRObelieves in providing equal opportunity to all those eligible and therefore this policy reflectsno prejudice or biases w.r.t gender, creed, religion, race or language.

There will be following two types of internships allowed to students:

Type I

Internship, that will allow induction of interns from prominent business schools (Ranked by HEC as of thetop ten universities in the country) with strong educational background and minimum 2.9 CGPA. Theseinternship programs may run twice in a year (as per the discretion of the Management) where students intheir final years of Bachelors or Masters will be interviewed and selected as interns for minimum 4 weeksand maximum 8 weeks with a fixed amount of stipend admissible upon satisfactory completion of theinternship tenure and submission of appropriate Internship Report.

These internships will be made available only upon the respective segments solicitation as a project basedlearning opportunity. The Bank coordinates with the placement offices of theseschools for profile collectionetc.

Type II

These internships may be allowed to students from institutions other than the ones marked in Type I yetmean reputable educational institutions, upon recommendation of either Zones or Divisional Heads.The criteria will remain the same as that for Type I, i.e. with good educational background (not less than50% from Metric to Graduation) with preferable CGPA– 2.9 minimum. These internships may be allowedanytime during a year to students who are in their final year of either Bachelors or Masters Degree for

minimum 4 weeks & maximum 8 weeks. A minimal amount of stipend will be admissible under theseinternships to accommodate interns to meet their transportation /lunch expenses etc. It will be preferredthat the students applying provide reference letter from their College / University (recognized /accredited bythe HEC).

The Management may, at its discretion, consider facilitating a certain number of internships to thecandidates recommended by the segment heads, relatives or offspring of the staff members under this typeof internship.

Procedure

All internships will be handled centrally i.e. is through HRD approval only; as such all Internship Reports &

Evaluations will be submitted by the line managers to HRD for assessment and issuance of certificates, if foundsatisfactory.

The CVs of short-listed potential candidates for internships will be forwarded to the Segments for review /interview. The selected candidates, approved by the Head of Division/Segments on Internship RequestForm, will be offered internship in the Bank for a period of 4 weeks minimum to 8 weeks. The extension ininternships tenure for either type (Type I & II) will not be allowed beyond total 8 weeks.





37

The interns will be governed by all applicable Policies and Procedures of HABIBMETROin place and asamended from time to time during their internship tenure. The Bank will have the right to terminate theinternship if an intern is found either not following or violating the code of conduct or any of the Banks rulesand regulations. In such case the student will not be entitled for issuance of certificate or stipend.

Furthermore, the eligibility criteria for issuance of Internship certificate are as follows:

The intern exhibited Punctuality & Discipline (attended office regularly and on time, adhered to the

prescribed professional ethics, dress code, Code of Communication) and did not divulgeinformation shared with him to any third party who shouldnot have access of the information.

The intern performed as per the expectations communicated to him/her from the beginning of theinternship.

The intern maintained the team spirit and supported healthy environment through a positiveattitude and learning aptitude.

The intern will have to submit his/her Internship Report at the end of the Internship tenure (preferably withinone week of completion of internship) in order to be eligible for Internship Certificate & Stipend from HRD.

The HRD will have the authority to change stipend policy from time to time, revoke accepting an internship

report or advice resubmission, if found unsatisfactory.Refer Annexure ‘AA- ‘AE





38

Chapter VIISuccession Planning

Policy Statement

Habib Metropolitan Banks aim is to fill key vacancies through a Succession Planning process and topromote people from within the Bank for leadership roles.

Scope

The policy will entail 3 tiers:

Tier I : Senior Management - Group Heads / Divisional Heads/ Zone Heads

(all direct reports of the CE)

Tier II : Functional Heads / Unit Heads / Area Heads

Tier III : Unit Managers / Branch Managers / Team Leaders

The Chief Executive, in consultation with the HR, will undertake the identification of the incumbent(s) for

succession. However, identification of successor for the position of Head of Internal Audit will be decided by

the Board Audit Committee.

The readiness of the successor can fall into following criteria:

i. Emergency Successor (Candidates who can take over the position immediately)

These may be:

(a) immediate successors, capable of providing absolute and permanent replacement of thepredecessors.

(b) temporary solutions or successors doing the job for a short period only. This may be a peer or someone of a similar level of seniority from another function (possible job enrichment for an interimperiod).

ii. Potential Successor (Candidates who will be ready to take over the position within 12 months)

This will typically be an individual with a higher potential rating with skills, capabilities and stylenecessary for the role. This type of successor may be ready within 12 monthsor so.

iii. Longer Term Successor (Candidates who may be ready to take over the position in 24 months)

The training & development plan may be prepared according to the existing level of readiness of theidentified candidate.

Following will form part of the Succession Plan Process:

Understanding of Banks short and long term goals & objectives. Preparing a database on prescribed job descriptions, specifically identifying role based competencies,

qualification, experience and capabilities of successor(s). Encouraging the prospective / potential successor(s) to experience temporary command of respective

position(s) will add significant value in terms of grooming / training as well as testing readiness of incumbent(s).





39

The Criteria for identifying Successor

The successor(s) will be nominated based on the following criteria:

1. Strong & ambitious performer likely to be at a senior grade2. Impeccable record of integrity and technical ability3. Strong and proven customer related skills

4. Strongcommunication, negotiation and influencing skills5. Optimistic & realistic6. Emotionally mature and balanced7. Able to motivate others and possesses demonstrated leadership skills8. A problem solver who understands complex situation and is prepared to

facilitate the success of others9. Aware of local and international markets and has the vision to develop

business strategies10. Fits well to current and aspired organizational culture

Identification & Review Matrix

The Succession plan for: Tier I / direct reports of the Chief Executive (CE) will be reviewed by CE & HR, the access of

process and relevant detail will also be available to the BoDs / Sub Committee of the BoDs.

Tier II & III will be reviewed by CE &HR in consultation with the relevant Group Head/ DivisionalHead/ Zone Head, if required. The access to the relevant process and detail will be available to HR& CE.

The HRMWG may, at the discretion of the Chief Executive, be co-opted to suggest expansion in talentpipeline by recruiting from outside. Once the shortlisting of successor(s) is undertaken, their development/transition plan may be documented and reviewed to address progress and shortcomings.

Training & Development

Upon identification of the incumbent in Tier II & III, wherever required, HR in consultation with the relevantfunction will formulate learning & developmental plan to facilitate grooming at the required level and alsoapprise HRMWG of the same. This plan may include but not be limited to coaching, cross functionalexposure, leadership development etc.

The step wise succession tools include technical skill development which may be undertaken through jobenrichment / enlargement, elevation, redeployment to provide ample opportunities to incumbent(s) to havedesired exposure.

As part of the developmental activities the successor may also have planned interface with the relevant

authority, as mentioned in the review matrix.

The succession plan will be reviewed biennially by the CE & Human Resource & Remuneration Committee(HR & RC) to ensure that the plan is realistic and robust.





40

Chapter VIII

Grievance Policy / Conflict Management

Policy Statement

It is banks endeavor to provide an effective way for employee to bring problems concerning their well beingat work to the attention of the Banks management.

Where possible and appropriate, the Bank will endeavor to maintain confidentiality in respect of allconcerns raised.

The policy will not be invoked to appeal against sanctions imposed as a result of disciplinary policy.

Resolution of Conflict

Misunderstandings or conflicts can arise in any organization and should be resolved before seriousproblems develop. Most incidents resolve themselves naturally, however, should a situation persist that theemployee believes is detrimental to himself/herself or the Bank, the employee should follow the proceduredescribed here for bringing the grievance tomanagements attention.

Discussion of the problem with immediate supervisor is encouraged as a first step. If through discussion theconflict is not resolved then the grievance should be documented and sent to HR. However, if the employeefeels uncomfortable approaching his/her supervisor then HR may be approached in the first instance, inwriting.

Investigation

HR will nominate an independent person to investigate the matter. The investigation will be solely for assembling the facts and to require any witness statements. A member of Human Resources may assist inthis process.

If, at the completion of the investigation, bank determines that the employee against whom the complaint islodged is guilty of discriminatory or harassing behavior, appropriate disciplinary action will be taken againsthim.

The Bank prohibits any form of retaliation against any employee for filing a genuine complaint under this

policy or for assisting in the complaint investigation. However, if, after investigating any complaint, Bankdetermines that an employee intentionally provided false information regarding the complaint, disciplinaryaction may be taken against the one who gave false information.(Chapter

R-015/2011 dated 02.11.2011)





41

Chapter IX

Power of Attorney

HabibMetro hastwo types of Authorized signatories (Power of Attorney holders) i.e. category ’A’ and

category ’B’ for conducting Banking tr ansactions. HabibMetro has a pol icy of joint signatures

requirement (with at least one signatory belonging to Category ’A’). Endorsementsof cheques,drafts,bills of exchangeaswell as routine correspondence not involving transfer of value can however be

signed singly by any of our Authorized signatories.

Issueswith the pr esent practice:

1) Category ’A’ signatories have ext ensi v e powers and as HabibMetro expands its network in

the country availability of staff with adequate experience and expertise is becoming

increasinglydifficult.

2) Category ’A’ signator ies have e x cessi ve power s e.g. litigation, foreclosures etc, which are

neededandpose undue risk.

3) Since dual signatures are required and a category ’A’ signature is mandatory, generally

Branch Managers (who ar e sole category ’A’ signator ies) in smaller Branches have to stay in

the Br anch premises for signing instruments and as suchHMB’sability to usethese resources

for marketing and businessneedsishamper ed.

After consultations with stake holders, assessment of practices in other Banksand in consultation withlegal counsel the following policy is proposed as it will yield a better balance between r isk and

productivity.

This will help HabibMetro in giving Category ’A’ powers to officers having adequate experience and

expertise and on need basis without hindering routine Banking Business.

In addition, for one off cases like litigation foreclosures and specialized function of HR, purchase&

sale of property etc, HabibMetrowill give a separate "Supplementary power of Attorney’’ to category

’A’ signator ieswhichwill mitigate risk.

HabibMetrowill continue to havetwo categor iesof signatories publishedand in general use: C at eg ory ’ A’ si gnat or ies:

• will beauthor ized to signwith ’A’ or ’B’ for all bankingtransactions without limit asper pr esentpr actice.

• will retain enhanced powers for sensitive bank transactions like signing on credit relateddocuments etc. (sothat the banking business isconducted efficiently)

Category ’ B’ si g nat or i es:will havesigning power s of up to Rs. 3Million jointly with another category B signatory."





42

Chapter X

Disciplinary Action Policy

a) Policy Statement

Integrity, trust and respect are integral part of the core values of the Bank. Hence, employees are expected

to not only adhere to the Banks employment rules, policies, code of conduct and regulatory guidelines butalso not to indulge in activities detrimental to the Banks interest and / or subversive to its policies,regulatory requirements as well as law of the state. As such, employees committing or involved incommission of infringement of any of the provision(s) of the Banks policies, rules & regulations, regulatoryrequirements or law of the state will render themselves liable for disciplinary action.

b) Scope

This policy shall apply to all employees of the Bank.

c) Misconduct

The term includes a variety of acts of omissions and commissions by an employee. The acts that formbasis of misconduct may include but not be limited to:

a) Absence from work without authorityb) Time management, malingeringc) Uncooperative attituded) Substance abusee) Habitual late attendancef) Disruptive, intimidating or abusivebehaviour

All incidences of misconduct may not necessarily be made subject to disciplinary action unless absolutelynecessary. The event of unsatisfactory response to show cause may attract written admonition(s) includingwarning letter(s); problems persisting despite warning letters may be considered to be taken for disciplinaryaction.

d) Gross Misconduct

Serious misconduct is a particular behavior/act that justifies termination of employment. Acts and commissionsof misconduct may include a combination of a number of incidents of misbehavior or a single offence frequentlyrepeated or a single serious incident. The following list is indicative and does not include all acts or commissions that may constitute serious misconduct:

a) Theft, Fraud, embezzlement, dishonesty, tampering of records, divulging confidentialinformation, habitual breach of laws and rules & regulationsof the bank etc.b) A willful and serious breach of the Banks Code of Conduct, Statutes or Policiesc) Verbal/written or physical serious harassment (including sexual harassment) as referred to

in the Banks HR Rules & Policy Guidelines.d) Abusing or threatening another employee / customer e) Making threatening remarks and using abusive language;f) Malicious damage to or misuse of Banks property including official stamps, stationery etc.g) Physical assault of any employee / customer h) An act of serious insubordination, or willful failure to carry out reasonable instructionsi) Criminal offense committed outside office which impacts the employee and / or Banksreputation





43

j) Carrying and / or use of Narcotics, Alcohol etc. in or outside the Banks premisesk) Frequent repetitions of acts /omissions of misconduct for which the staff has beencounseledl) Bringing the Bank or its employees or associates into disrepute or damaging the reputationof the Bank inany waym) Concealment of facts, misstatement, submission of fake / fabricated documents / receiptsincluding educational testimonials, degrees, bills, certificates etc.n) Unauthorized interaction with media in personal or official capacityo) Discrimination on the basis of age, gender, religion, race, nationality, marital status,disability etc.p) Engaging directly or indirectly, without permission of the Bank, in any other business or paid occupation, whilst being in the service of the Bank.

e) Disciplinary ActionCommittees (DAC)s

The primary responsibility of managing potential disciplinary incidents lies with the line manager; however,once initiated all cases of discipline, fraud, etc., shall be reported to the DA Committee through HRD for taking necessary action. In order to bring discipline and accountability amongst the staff the following wouldconstitute the Disciplinary Committee of the Bank:

Three DACs will be formed with atleast 3 members as mentioned hereunder. Each DAC shall – apart fromthe members- have a secretary (Head of HR Operations) who will minute / document the proceedings of the committee meeting(s). As regards recommendations of the DACs, the same shall be forwarded for decision to the respective competent authority:

Upto SVP (Non Key Executive) DAC– I

SVP and Above (Key Executive) DAC– II

Members Competent Authority

4. Chief Executive

BoDs

5. CFO

6. Head of Compliance & Legal Division

7. Head of HRD

DAC–IIIIncase of Head of Audit position, the Board Audit Committee (BAC) shall constitute the DAC, and the BoDswill be the decision making & appeal reviewing authority.

Members Competent Authority

1. Head of Compliance & Legal Division

Chief Executive2. Concerned Divisional /Zone Head

3. Head of HRD





44

f) Disciplinary Action Process

• Upon receipt of information of misconduct, misappropriation and / or fraud, the DA Committee shallappoint an inquiry officer [preferably an Audit Officer (AO)], to find out ground realities,circumstances, modus operandi and personnel involved in the case reported / surfaced.

• The designated AO shall submit his/her confidential report to the Head of HRD for onwardsubmission to the DAC.

• The DAC shall thoroughly examine the report and fix responsibilities of negligence / involvement.

• The accused i.e. the concerned employee shall be issued a letter seeking explanation, wherein He/ She will be given sufficient time to reply in writing.

• The DAC shall review the reply and appoint an Independent Inquiry Officer (IO).

• The IO shall conduct independent inquiry into the alleged incident(s) and submit his/her findings /recommendations to the DAC.

• Based on the report, the past performance, integrity, character, attitude & behavior of the accusedand, opinions of immediate superiors, the DA Committee shall present its recommendations to therespective competent authority for final decision.

The DAC shall have the authority to appoint an independent Inquiry Officer (preferably from Internal AuditDivision). Moreover, based on the inquiry and resultant facts, DACshall have the authority to recommend, tothe competent authority, whatever the case maybe, for final decision, sanction(s) such as:

a. Letter of Warning with or without corrective action *(counseling, coaching etc.)b. Letter of Reprimandc. Compulsory Retirementd. Dismissal from the servicee. Demotion to a lower gradef. Stoppage of increments for one year or moreg. Stoppage of promotion for a specific periodh. Forfeiture of pay for any period of unauthorized absence from dutyi. Suspension Order

j. Recovery from pay of the whole or part of any pecuniary loss caused to the Bank.k. The DAC may recommend withholding service benefits of any employee, where the employee

is terminated as a result of his/her involvement in frauds, forgeries, misappropriation etccausing financial loss to the Bank.

g) Review / Appeal Process & Authority

An employee shall have the right of appeal or of making application for review for any of the penaltiesimposed upon him / her within one monthof the date of orders conveying such penalties. The authority, toreview such appeals or applications, shall lie with an authority other than the original committee whichrecommended the punishment.

o Where the authority which passed the orders of punishment is the Board of Directors, the appealsor application of review shall also lie with the BoDs.





45

o Where deemed fit the employee concerned may be heard in person by the authority with whom thereview or the appeal lies.

o Every appeal or application for review shall be submitted through the proper channel and complywith the following requirements:-

a. It shall contain all material statements and grounds relied upon and shall be complete initself; and

b. It shall specify the relief desired.

An appeal or application for review may be withheld by the authority passing the original orders if:-

a. It does not comply with the requirements of sub clause a & b highlighted above.

b. It repeats an appeal or application for review already rejected by the authority to whom theappeal or application for review is addressed and does not disclose any new points or circumstances for reconsideration.

c. It is addressed to an authority to which no appeal or application for review lies.d. It deals with a matter which does not concern the employee personally.

e. The appeal authority shall have final powers to accept or reject the appeal.

-Review Committee– I (upto Grade SVP)

- A Senior Executive from Division other than Head of Compliance and

Legal Division

Chief Executive-A SeniorExecutive other than concerned Zone/Divisional Head

-Head Of HRD

-Review Committee– II (for Grade above SVP)

-A Senior Executive from Division other than the concerned Zone/Division

Board of

Directors

-Head of HRD

-Chief Executive

-ReviewCommittee III (for Audit Division)

-The Board of Directors

h) Corrective Actions

*Based on the category of offence and rehabilitation potential, and as an opportunity to correct him /herself, the concerned employee may be referred / recommended for counseling / coaching for improvement, during or at the end of the DA process.





46

Chapter XI

Separation

Resignation

If an employee wishes to resign from service of the Bank, he will submit his resignation in writing and give

three months prior notice thereof, failing which the employee shall be liable to pay to the Bank a sumequivalent to his three months basic pay. Where the employee has signed an undertaking to serve theBank for a specified period of time and has not completed the same, must also pay the amount as providedunder rule 6 of chapter II.

This clause may be waived at the discretion of the Chief Executive.


Termination

The Bank may terminate the services of any permanent employee by giving 30 days notice in writing or onemonths pay in lieu thereof.


Retirement

1. Every employeeshall retire from the service of the Bank:

(i) On such date after completing twenty-five years of service with the Bank as the Chief Executive may, in his absolute discretion, direct either generally or in any individual case.

(ii) Whereno direction is given by the Chief Executive under sub-rule (i) hereof, he shall retireon his completing the sixtieth year of his age;

(iii) Where an employee is declared unfit for further service by a Medical Board constituted bythe Chief Executive for the purpose, on such date as the Chief Executive may in hisabsolute discretion direct;

(iv) On such date after completion of twenty-five years of service with the Bank as theemployee may opt by notice to the Bank given at least six months before the intended dateof his retirement.

(v) Where an employee has retired from service under sub-rule (ii) hereof, the Chief Executive may, at his absolute discretion, re-employ him / her on contract for such periodand on such terms as the Chief Executive may determine.

(vi) Any extension of service beyond 65 years of age will be at the discretion of the Chief Executive and on a “Fixed Contract Basis”





47

2. Every employee shall, before his retirement, be entitled to Leave Preparatory to Retirementequivalent to the period of his accumulated Privilege Leave. The accumulated privilege leave, asper the leave rules, shall not exceed Sixty (60) days.

Provided that the entire period of Leave Preparatory to Retirement shall be availed beforeretirement and therefore it will not be permissible to extend any period of leave beyond the date of retirement.

Provided further that the Chief Executive may, at his absolute discretion, refuse to allow leave toany employee, but in the event of such refusal by the Chief Executive in writing, the employee shallbe paid his salary and allowances for the period of leave so refused at the time of his retirement.

3. Leave Preparatory to Retirement shall be applied for by every employee, retiring under Rule-1(ii),at least six months before completing the sixtieth year of his age, and any employee who does notmake his application as aforesaid shall be deemed to have waived his entitlement to such leave.

4. Any employee retiring under Rule 1 (i) and (iii), may, at the discretion of the Chief Executive, beeither required to proceed on leave Preparatory to Retirement immediately or may, on hisretirement, be paid salary and allowances for the period of his accumulated Privilege Leave notexceeding Sixty (60) days.

4.a. If the Bank separates any officer / executive, the accumulated Privilege Leave, not exceeding 60-days, will

be encashed at last drawn gross salary. Head of HRD will be the approving authority.

4.b. If the Bank re-hires any officer / executive on Fixed Emoluments Contract, his accumulated Privilege Leave,not exceeding 60-days, at the time of such change of status from Regular / General Contract, will beencashed at last drawn gross salary. Head of HRD will be the approving authority.

4.c. In case of separation due to death of an officer, the Bank will disburse the following to the legalheirs of the deceased staff members:

i. Encashment of accumulated privilege leave, not exceeding 60 – days at last drawn grosssalary. Head of HRD will be the approving authority.

ii. Payment of Bonus, if due. Head of HRD will be the approving authority.

5. These retirement rules shall be binding on every confirmed permanent employee of the Bank.

Check list at Annexure ‘U will be required to be completed in respect of separating officers by their respective Branch Managers / Divisional Heads and forwarded to HRD for issuanceof ServiceCertificate.





48

Chapter XII

ProtectionAgainst Harassment of Womenat theWorkplace Act, 2010

In March-2010, the Government of Pakistan promulgated the Act “Protection Against Harassment of

Women at the Workplace Act, 2010” .

Principle:HABIBMETRO is committed to provide work environment free from harassment (including sexualharassment). The Bank promotes confidence to work, to innovate, and to perform in a conduciveatmosphere without fear of harassment. Therefore, harassment on part of any employee / individualaffiliated with the Bank shall not be tolerated under any circumstance or condition.

Purpose:The purpose of this policy is to ensure that, in the workplace, no employee / individual or supervisor harasses in any way another employee / individual on the basis of gender, sexual orientation, race, color,

ethnic background, minority status, disability, or personal likes and dislikes. Moreover, the purpose is toensure that harassment (including sexual harassment) in any form is not tolerated.

Competent Authority:Under the code of conduct, the competent authority would be the Chief Executive.

Inquiry Committee:Under the code of conduct -“Protection Against Harassment of Women at the Workplace Act, 2010”,

an inquiry committee consisting of the following has been formed:

Head of Legal

Head of AuditRespective Divisional / Zonal HeadWomen Representative [South / North to be nominated by the CE]Head of HRD

Code of Conduct:

The Bank has adopted the recommended code of conduct – “Protection Against Harassment of Womenat the Workplace Act, 2010” [Annexure – Y (A)] in to, copy of which will also be placed on the Banksportal for reference. Moreover, a circular [Annexure – Y (B) refers] is also required to be displayedconspicuously on the staff notice boards available in all the branches / offices of HABIBMETRO.

(Chapter X, XI & XII renumbered v





Annexures



Annexure –‘A’

INTERVIEW ASSESSMENT FORM

01. Name of Candidate______________________ 02. Fathers Name____________________

03. Qualification___________________________ 04. Date of Birth_____________________

05. Placeof Interview ______________________ 06. Date of Interview__________________

07. Interview Assessment :-

Assessment Areas Assessment Ratings

Remarks Poor Average Good V. Good Outstanding

i. Experience

ii. Personality

iii. Communication Skills

iv. Confidence

v. Motivation

vi. Enthusiasm

vii. Aspiration

viii. Behavior

ix. Initiative & Drive

x. Flexibility

xi. Intellectual Abilities

08. Interviewed by ________________________________

09. Overall Assessment of the Candidate ________________________________

10. Current Salary ________________________________

11. Acceptable Salary ________________________________

12. Expected Date of Joining ________________________________

13. Recommendation of Interviewer ________________________________

________________________________

14. Signature of Interviewer _____________________



Annexure ‘B’

Salary Structure w.e.f. 01-Jan-2013

(Salary structure updated vide memo ref: BOD-001-2013 dated 18.04.2013)



Annexure ‘C’ MonthlySalaryFormat

(Monthly Salary Slip Format added vide memo ref: HO/HRD/CIR-0217/2010 dated 11.11.2010 )



Annexure –‘D’

Monthly Car Allowances

SEVP [2nd Car] Rs. 39,000/- p.m.

EVP [2nd Car] Rs. 26,000/- p.m.

SVP Rs. 42,000/- p.m.

VP Rs. 39,000/- p.m.

AVP Rs. 26,000/- p.m.

BMs (below AVP)* Rs. 18,000/- p.m.

*In case of change of assignment, the allowance will be withdrawn



Annexure –‘E’

House Furnishing Limits

1. SEVP Rs. 400,000/-

2. EVP Rs. 350,000/-

3. SVP Rs. 300,000/-

4. VP Rs. 250,000/-

5. AVP Rs. 150,000/-



Benefits Description/ Plan

A.

SVP & Above

B

VP//AVP

C

CM/MGR

D

OG-I

E

OG-II

F

OG-III

G

JO

H

NCS

HOSPITAL EXPENSE BENEFIT:

LIMIT PER CONFIREMENT PER INSURED:Including Room & Board, Hospital / Surgical &

Miscellaneous expenses, Some of the covered

expenses are:i) In-Hospital Consultationsj) Intensive Care Charges

k) Surgical Fees

l) Anaesthetist's Feem) Operating Theatre Chargesn) Prescribed Medicines Used DuringHospitalization

o) Diagnostic Investigationsp) Blood and Oxygen Supplies

q) Ventilators and Allied Servicesr) Kidney Dialysis /Chemotherapy &

Radiotherapy for Cancer Treatment

s) Daycare Surgeries & Certain SpecializedInvestigations as under:

h) MRI, CT Scan, Endoscopies, Angiography &

Thallium Scan on an Outpatient BasisS UB L I M I T S

1. ROOM & BOARD Sub limit per day

(This sub-limit is applicable to all other optionalinpatient benefits)

2. Pre & Post Hospitalization Expense

Benefit:Pre & Post hospitalization limit is available for the

following expenses, which are directly related tothe cause of hospitalization 30 days before &

after.Consultants fee in the follow up visits

Cost of medicines & suppliesCost of Lab tests

Dressing charges and stitch removal

3. Hepatitis Out-Patient Treatment:

Out-Patient treatment is covered, subject to itsavailability.

4. Congenital Ailments:

Covered upto the limit of Hospitalization as wellas Comprehensive Hospitalization Expense

Benefit Limit, subject to its availability, and also

covered under the limit of Dread DiseaseExpense Benefit.

200,000

12,000

300,000

600,000

150,000

5,000

300,000

450,000

100,000

5,000

300,000

330,000

75,000

5,000

300,000

320,000

70,000

2,500

300,000

310,000

60,000

2,000

300,000

250,000

60,000

2,000

300,000

200,000

60,000

2,000

300,000

200,000

COMPREHENSIVE HOSPITALIZATION BENEFIT:

• Maximum limit P er A n n u m P er I n s u r e d .To pay when the Hospital Expense Benefit

limit has been exhausted. (Cover for

Employees, Spouse & Children)

For details of the benefit, please refer toSection IV

450,000 350,000 250,000 250,000 250,000 200,000 150,000 150,000

MATERNITY EXPENSE BENEFIT:b) Annual limit for all pregnancy related

hospitalization.

c) Normal Deliveryd) Cesarean Section

S UB - L I M I T

Pre/Post natal expenses covered, subject to

available Maternity limit.

For details of the benefit, please refer toSection IV

100,000

200,000

60,000

120,000

40,000

80,000

40,000

75,000

40,000

75,000

30,000

60,000

30,000

60,000

30,000

60,000

COMPREHENSIVE DREAD DISEASE EXPENSE BENEFIT:

• Annual limit for 13 specific critical ailments(For Employee/Spouse/ Children).

400,000 400,000 350,000 350,000 200,000 200,000 200,000 200,000

Adamjee Insurance Company Limited

Benefit Schedule of Medical Policy of HABIBMETRO Annexure –‘F’



‘ Annexure –‘G’ Attached to and forming part of policy No.

SCALE OF BENEFITS

Schedule of permanent partial disability (accident) benefits:-

Nature of disability Benefits as a proportion of the principal sum insured

Total and irrecoverable loss of sight of both eyes 100%Loss of both arms or both hands 100%Complete and permanent deafness of both ears of traumatic origin 100%Removal of the lower jaw 100%Permanent loss of speech of traumatic origin 100%

Loss of one arm and one leg 100%Loss of one arm and one foot 100%Loss of one hand and one foot 100%Loss of one hand and one leg 100%Loss of both legs 100%Loss of both feet 100%

HEADLoss of osscous substance of the skull in all its thicknessSurface of at least 6 sq. cm. 40%- Surface of 3 to 6 sq. cm. 20%

- Surface of less than 3 sq. cm. 10%

Partial removal of the lower jaw rising section in its entiretyOr half of the maxillary bone 40%

Loss of one eye 40%

Complete and permanent deafness of one ear 30%

UPPER LIMBSLeft Right

Loss of one arm or one hand 50% 60%

Considerable loss of osscous substance of the arm(definite and incurable lesion) 40% 50%

Total paralysis of the upper limb(incurable lesion of the nerves) 55% 65%

Total paralysis of the circumflex nerve 15% 20%Shoulder anchylosis 30% 40%

Elbow anchylosis - infavorable position (15 degrees round the right angle) 20% 25%



Attached to and forming part of policy No.- in unfavorable position 35% 40%

Extension loss of osscous substance of the two bonesof the forearm (definite and incurable lesion) 30% 40%

Total paralysis of the median nerve 30% 45%

Total paralysis of the radial nerve at the torsion cradle 35% 40%

Total paralysis of the forearm radial nerve 25% 30%

Total paralysis of the hand radial nerve 15% 20%

Total paralysis of the cubital nerve 25% 30%

Anchylosis of the wrist in favorable position

(straight and pronation) 15% 20%

Anchylosis of the wrist in unfavorable position(flexion or strained extension or supine position) 25% 30%

Total loss of thumb 15% 20%- Partial loss of thumb (ungual phalanx) 5% 10%- Total anchylosis of thumb 15% 20%

Total amputation of forefinger 10% 15%

Amputation of two phalanges of forefinger 8% 10%

Amputation of the ungual phalanx of forefinger 3% 5%

Simultaneousamputation of thumb and forefinger 25% 35%

Amputation of thumb and finger and other than forefinger 20% 25% Amputation of two fingers other than thumb and forefinger 8% 12%

Amputation of three fingers other than thumb and forefinger 15% 20%

Amputation of four fingers including thumb 40% 45% Amputation for four fingers excluding thumb 35% 40%

Amputation of median finger 8% 10%

Amputation of a finger other than thumb, forefinger and median 3% 7%

LOWER LIMBS Amputationof thigh (upper half) 60%

Amputation of thigh (lower half) and leg 50%

Total loss of foot (tibio–tarsal disarticulation) 45%



Partial loss of foot (sub–ankle–bone disarticulation) 40%

Partial loss of foot (media –tarsal disarticulation) 35%

Partial loss of foot (tarso -metnatarsal disarticulation) 30%

Attached to and forming part of policy No.

Total paralysis of lower limb (incurable nerve lesion) 60%Complete paralysis of the external poplitic sciatic nerve 30%

Complete paralysis of the internal poplitic sciatic nerve 20%

Complete paralysis of two nerves (poplitic sciatic external and internal) 40%

Anchylosis of the hip 40%

Anchylosis of the knee 20%

Loss of osscous substance from the thigh or both bones of leg (incurable condition) 60%

Loss of osscous substance of the knee-pan with considerableseparation of the fragments and considerable difficulty of movements in stretching the leg 40%

Loss of osscous substanceof the knee-pan while the movementsare preserved 20%

Shortening of the lower limb by at least 5 cm 30%Shortening of the lower limb by 3 to 5 cm 20%

Shortening by 1 to 3 cm 10%

Total amputation of four toes including big toe 25%

Amputation of four toes excluding big toe 20%

Anchylosis of the big toe 10%

Amputation of two toes 5%

Amputation of one toe, other than the big toe 3%

For anchylosis of the fingers (other than the thumb) and of the toes (other than the bigtoe) 50% only of the compensation which would be due for the loss of the saidmembers shall apply.

The total compensation payable in respect of several disablements due to the same

accident is arrived at by adding together the various sums, but shall not exceed thetotal sum insured under the schedule of compensation.



If the insured person is left – handed, the percentage set out above for the variousdisabilities of the right upper limb and left upper limb will be transposed.


SCALE ‘C

Permanent Partial Disability (by Sickness) Benefits:-

Nature of disability Benefits as a proportion of the principal sum insured

Total and irrecoverable loss of sight of both eyes 100%Loss of both arms or both hands 100%Complete and permanent deafness of both ears of traumatic origin 100%Removal of the lower jaw 100%Permanent loss of speech of traumatic origin 100%Loss of one arm and one leg 100%Loss of one arm and one foot 100%Loss of one hand and one foot 100%Loss of one hand and one leg 100%Loss of both legs 100%Loss of both feet 100%

HEADLossof osscous substance of the skull in all its thickness

- Surface of at least 6 sq. cm. 40%- Surface of 3 to 6 sq. cm. 20%- Surface of less than 3 sq. cm. 10%

Partial removal of the lower jaw rising section in its entiretyor half of the maxillary bone 40%

Loss of one eye 40%

Complete and permanent deafness of one ear 30%

UPPER LIMBSLeft Right

Loss of one arm or one hand 50% 60%

Considerable loss of osscous substance of the arm(definite and incurable lesion) 40% 50%

Total paralysis of onearm (incurable lesion of the nerves) 50% 60%

Total paralysis of the circumflex nerve 15% 20%



Extension loss of osscous substance of the two bones.of the forearm (definite andincurable lesion) 30% 40%


Total paralysis of the median nerve 35% 45%

Total paralysis of the radial nerve at the torsion cradle 35% 40%

Total paralysis of the forearm radial nerve 25% 30%

Total paralysis of the hand radial nerve 15% 20%

Total paralysis of the cubital nerve 25% 30%

Total amputation of thumb 15% 20%

Total amputation of forefinger 10% 15%

Amputation of two phalanges of forefinger 8% 10%

Amputation of the ungual phalanx of forefinger 3% 5%

Simultaneous amputation of thumb and forefinger 25% 35%

Amputation of thumb and finger and other than forefinger 20% 25%

Amputation of two fingers other than thumb and forefinger 8% 12%

Amputation of three fingers other than thumb and forefinger 15% 20%

Amputation of four fingers including thumb 40% 45%

Amputation for four fingers excluding thumb 35% 40%

Amputation of median finger 8% 10%

Amputation of a finger other than thumb, forefinger and median 3% 7%

LOWER LIMBS

Amputation of thigh (upper half) 60%

Amputation of thigh (lower half) and leg 50%

Total loss of foot (tibio–tarsal disarticulation) 45%

Total paralysis of a leg(incurable nerve lesion) 60%

Complete paralysis of the external poplitic sciatic nerve 30%

Complete paralysis of the internal poplitic sciatic nerve 20%



Complete paralysis of two nerves (poplitic sciatic external and internal) 40%

Loss of osscous substance from the thigh or both bones of leg (incurable condition) 60%Attached to and forming part of policy No.

Loss of osscous substance of the knee-pan with considerableSeparation of the fragments and considerable difficulty of movements in stretching the leg 40%

Loss of osscous substance of the knee-pan while the movementsare preserved 20%

Shortening of the lower limb by at least 5 cm 30%

Shortening of the lower by 3 to 5 cm 20%

Shortening by 1to 3 cm 10%

Total amputation of four toes including big toe 25%

Amputation of four toes excluding big toe 20%

Amputation of four toes excluding big one 10%

Amputation of two toes 5%

Amputation of one toe, other than thebig toe 3%

If the claimant is left-handed, the percentage set out above for the various disabilities of the rightupper limb and left upper limb will be transposed.



Annexure –‘H’

Group Life Insurance Coverage

Grade Coverage(In Pak Rupees)

CE / SEVP Rs. 21 Million

EVP Rs. 18 Million

SVP Rs. 16.5 Million

VP Rs. 13.5 Million

AVP Rs. 10.5 Million

CM Rs. 9 Million

Manager Rs. 7.5 Million

Officer Grade I Rs. 4.5 Million

Officer Grade II Rs. 3 Million

Officer Grade III Rs. 1.5 Million

Junior Officer and NCS Rs. 1.2 Million



Annexure –‘I’ Description

Travel byAir

Domestic Travel

SEVP & Equiv.= BusinessEVP = Economy +SVP & below = Economy

Intl. Travel

SEVP = Business

EVP = Economy + / Economy (In-case of unavailability of Economy+)SVP & below = Economy

Travel byTrain

Domestic TravelAVP and above: First Class Railway A.C.COfficers : First Class Railway with sleeping berth


Travel byRoad

Domestic Travel

• Public Transport or Bank Provided Car or Personal Car (Fuel only) ormotorcycle to be paid at Actual upon production of receipt in original (if available)

• NCS in case of emergency may also be reimbursed at actual.


A c c o m m o d a t i o n

Domestic Travel

Own accommodationIn lieu of hotel accommodation:EVP and above: Rs. 5,000 / day AVP - SVP : Rs. 4,000 / day Mgr - CM : Rs.2,500 / day

JO - OGI : Rs. 1,500 / day

Bank Provided AccommodationSEVP / President : any hotel, expenses shall be reimbursed at actualSVP - EVP : 5 Star HotelAVP- VP : 4 Star Hotel

JO - CM : 3 Star HotelNCS : Rs. 300/- per day (on self arranged basis)

Incase of stay at guest house or a place less than entitlement thereimbursement will be at actual.

Mini bar/ food, laundry & other out of pocket expenses are not included inaccommodation entitlement and will be debited from the staff salary account.

For Female Employees: accommodation as per entitlement and wherever safety reasons require upto 4 star hotel

Intl. TravelSVP & above 4 Star HotelAVP - VP 3 Star HotelCM & below 2 star /tourist class hotel/guesthouse as per

availability

Description

TA/DA

Domestic Travel

EVP & above Rs. 3000/day SVP Rs. 2000/day AVP –VP/Exec. on Cont. Rs. 1500/day MGR – CMGR Rs. 1200/day OGIII - OGI Rs. 1000/day

JO Rs. 800/day NCS Rs. 400/day

Intl. TravelSVP - SEVP USD 100AVP – VP USD 75Officers – CM USD 60



Annexure –‘I(A)’

Daily allowance for outstation visits to Branches by Internal Audit Staff:

Sr. # Grade Amount per day

1 Executive Vice President & above Rs. 2,500

2 Senior Vice President Rs. 2,200

3 Assistant VicePresident –Vice President

(Including executives on contract) Rs. 2,000

4 Manager –Chief Manager

5 Officers (all grades)



Annexure –‘I(B)’

Conveyance allowance for local visits tobranches by Internal Audit Staff

Sr. # Designation Amount per day

1 Audit Team Leader Rs. 200

2 Audit Team Members Rs. 125



Annexure –‘I(C)’ Hotel accommodation during International Visits:

Sr. # Designation Entitlement

1 SVP -SEVP 4 Star

2 AVP–VP 3 Star

3 Officers–Chief Manager 2 Star

Daily Allowance during International Visits:

Sr. # Designation Allowance per day

1 SVP -SEVP US $ 100

2 AVP–VP US $ 75

3 Officers–Chief Manager US $ 60

Daily allowance will be inclusive of food, laundry, tips, porter charges, personal calls and other out of pocket expenses.

Reasonable expense on conveyance for official visits during overseas assignment will be at actual.

In case of need,HR&RCwill review and revise the allowance. However, ratification from the BOD will have to beobtained subsequently.



PERFORMANCE APPRAISAL FORM FOR YEAR – _______

______________________________ Branch / Office

Emp No._________ Name___________________________ S/o./ D/o./ W/o ________________________

Date of Joining________________ Educational / Professional Qualification__________________________

Grade:__________________Posting in the branch since _________________CNIC# ___________________ [Copy Attached]

Immediate Supervisor____________________ Period in Present Functional Position ______________ _ _

Major Duties ____________________________________________________________ ______ ______________

Supervisor Evaluation: Outstanding = A Very Good = B Good = C Average = D

Sr. # Traits & Performance Eval-

uationScore [ A = 10 B=9 C=8 D=7]

[A ] : For All Officers / Executives Specific Achievements

01. Punctuality & Attendance for the Year

1.Financial Targets ___________

________________________________

_______________________ ___ ______

____________________ ____ ________

________________________ ____ ____

02. Dress & Appearance

03. Initiative & Drive

04. Getting along with Co-Workers

05. Ability to learn

06. Client Handling

07. Reliability under pressure

08. Productivity

09. Quality of Work

[B ] : Management Capabilities

[For Br. Mgrs & AVP & Above only]:

2. Task Based Assignments ______

_____________________________ ___

_____________________________ ___

________________________________

________________________________

_______________________ ________

[Sum of Scores Divided by 9 in case of

only [A] or 15 in case of [A] & [B]

10. Communication ability

11. Positive Attitude & Proactive Approach

12. Potential for advancement &

Shouldering greater responsibility

13. Leadership & Mentoring Skills

14. Decision Making Ability

15. Business Insight

Total Score[Sum of above]

[C] **Overall Assessment [ A / B / C / D]

**Ranges for Overall assessment: 9.1 – 10 = A 8.1 – 9 = B 7.1 – 8 = C 7 = D

Signature of the Employee ___________________________________________________________________

Signature/Comments of Br. Manager/Divisional Head _________________________________________

Signature / Comments of Area Head__________________________________________________________

Signature / Comments of Zonal Head _________________________________________________________

Cont’d on P/2


[Use reverse of the Sheet for detailed comments, if required]

Annexure ‘J’



________________ Name:_________________________ Grade ______________________

Professional Qualification acquired during –____________ [Please attach evidence]

1-___________________Majors in ____________________ Institute___________________________

2-___________________Majors in _____________________ Institute ___________________________ 3-___________________Majors in _____________________ Institute ___________________________

Transfer / Posting / Assignment History during__________

Year Date From Br. /Dept

To. Br. /Dept

Department/ Assignment / Major Duties [Please also report

transfer from one workstation to another within the br. / dept.]

[Use separate sheet, if required]

TrainingsIncluding Seminars & Workshops attended during __________

Sr.#

Course Name Institute FromDD/MM/YYYY

ToDD/MM/YYYY

CreditHours[If available]

Facilitator


Details of Award / Reward–___________ Sr. Award / Reward Description of Award / Reward

Details of Dependents [any addition / deletion during ______][Immediate Family (Wife, Son & unmarried Daughters]

Sr. # Name of Dependent Gender M / F

Relationship Dt. of BirthDD/MM/YYYY

CNIC # or B-Form #


All details stated above are true and correct to the best of my knowledge and belief.

Employee Signature______________________



JOB DESCRIPTION

Emp No. _______________ Name:_____________________ Grade ____________________

Functional Title:

Division / Branch

Department

Reporting To [Functional title]

Regular Duties / Responsibilities

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

Periodic Duties / Responsibilities :

1.

2.

3.

4.

5.

Employee Signature ______________________ Supervisor Signature _____________________



Annexure –‘K-1’

Delegation of Authority / Extent of Powers for execution of Policy

Appointments including re-employment upon retirement of Officers / Executives

Regular / Contractual

Job

D/ H or Z / H & any 2

Committee Members (Min 3

Members)

Head

HRD

C.E BO

D

Non Clerical (Out sourced) - A - -

JO – OG I (other than Br.

Mgr.)

R A - -

Mgr – SVP (Incl. Br. Mgr.) R R A -

E.V.P. / S.E.V.P - Co-ordinate R A

Promotion Authority

Regular / Contractual

Staff B/M

Z/H D/H P&CRC C.E BOD

JO – Manager R R R A - -

Chief Manager – SVP R R R R A -

Branch Managers - R - R A -

E.V.P. / S.E.V.P - - - Co-ordinate R A

(Recommending Authority for promotion must be one grade higher than the recommended officer,

while For Branch Managers the recommending authority shall be ZH)

Confirmation / Renewal of Contract Authority

Regular / Contractual B/M Z/H D/H Head HRD C.E

JO – C Mgr (other than Br.

Mgr.)

R R R A -

AVP – EVP (other than Br.

Mgr.)

R R R R A

Branch Managers - R - R A

S.E.V.P - - - Co-ordinate A

(Recommending Authority must be one step higher than the concerned officer)

Resignation / Termination Authority

Regular / Contractual B/M Z/H D/H Head HRD C.

E

BO

D

Non Clerical (Out sourced) R R R A - -

JO – OG I (other than Br. Mgr.) R R R A - -

Mgr – SVP (other than Br. Mgr.) R R R R A -

Branch Managers - R - R A -

E.V.P. / S.E.V.P - - - Co-ordinate R A

R= Recommending Authority A= Approval Authority

In the absence / during leave period of Head of HRD, the Senior Executives of HRD, not below the

rank of AVP, will exercise all / some of the discretionary powers as approved by the CE.(Comments

amended vide memo ref: HO/HRD/CIR-027/2010 dated 11.11.2010)



Annexure –‘K-2’

S.

#.

Nature of Benefit Recommending

Authority

Approval Authority

1. Prescribed rewards for passing IBP

exams

Branch Manager &

Zonal Head /

Divisional Head

Head of HR

2. All types of Staff Finance - do - Head of HR

3. Sanction of Leave to Branch Managers

& Area Managers

Area Head Zonal Head

4. Annual Premium for Group Life /

Medical Insurance / Property Insurance

- Head of HR & CFO Jointly

5. Summer & Winter Uniforms of NCS - Head of HR & Head of Security Jointly

6. Hajj Ballot & Sanction of Hajj Leave - Head of HR

7. Transfer of Cars as per Bank Policy - Head of HR & CFO Jointly



Annexure –‘L’

Annual Subscriptions :

Sr. # Qualifications Professional Institute

1. A.C.A. Institute of Chartered Accountants of Pakistan

2. A.C.M.A. Institute of Cost & Management Accountants of Pakistan

3. A.C.C.A. Association of Chartered Certified Accountants U.K.

4. C.I.A. Institute of Internal Auditors

5. C.I.S.A. Information Systems Auditing & Control Authority–ISACA

6. A.C.I.S. [Pak] Institute of Corporate Secretaries of Pakistan

7. ACA-EW Institute of Chartered Accountants in England & Wales

8.

9.

10.

C.F.A

C.R.I.S.C

C.I.C.A

Chartered Financial Analyst

Certified in Risk and Information Systems Control

Certified Internal Control Auditor

In case of needHR&RCwill review and revise/amend the list and obtain ratification from the Board of Directors.



Annexure –‘M’

IBP Cash Rewards & Reimbursement of IBP Fees

Cash Rewards as prescribed by IBP:

Attempt Stage– I Stage– II Stage –III

1st Attempt Rs. 50,000/- Rs. 75,000/- Rs. 100,000/-

2nd Attempt Rs. 30,000/- Rs. 50,000/- Rs. 75,000/-

3rd Attempt Rs. 10,000/- Rs. 15,000/- Rs. 25,000/-

Reimbursement of IBP Fees:

Reimbursement of following onproduction of proof of payment, to our staff members:

a). Commuted Life Time Relationship Fees

Conditions of re-imbursement :Upon successful completion of the Stage–I of IBP

b). Coaching classes Fees

Conditions of re-imbursement : Against IBP confirmation that candidate has attended 75% or more sessions and on passing thesame subject. Payment for one subject will be made only once.

c). Examination Fees

Conditions of re-imbursement :Upon passing the subject and on production of proof of payment.

AIBP & Special Certification Cash Awards:

Special Certificate Examination Associateship of IBP (AIBP) Examination

Attempt Award Attempt Award

1st Rs. 50,000 1st Rs. 150,000

2nd Rs. 30,000 2nd Rs. 100,000

3rd Rs. 20,000 3rd Rs. 50,000



Annexure ‘N’

ORGANIZATIONAL CHART OF HABIB METROPOLITAN BANK



Annexure ‘O’

Terms of References (TORs) of Human Resource & Remuneration Committee (HR&RC)

Constitution of the Committee:

Mr. Mohamedali R. Habib Chairman

Mr. Tariq Ikram Member

Mr. Waheed Usman Sakrani Secretary

Meeting of the Committee will be held as and when required but ideally not less than twice in a year.

Duties and Responsibilities

The Committee shall be responsible for:

recommending human resource management policies to the board;

recommending to the board the selection, evaluation, compensation (includingretirement benefits) and succession planning of the CEO;

recommending to the board the selection, evaluation, compensation (includingretirement benefits) of CFO, Company Secretary and Head of Internal Audit;

consideration and approval on recommendations of CEO on such matters for keymanagement positions who report directly to CEO.

reviewing and recommending changes to the Committees terms of reference, asandwhen required.

Any other matter related to HR

Quorum:

The quorum for any meeting shall be a minimum of two members.



Code of Conduct Annexure ‘P-1’

Policy Statement

In line with our desire “to be highly respected for all that we do”, we want to be known as a Bank with highstandards of ethical conduct, up keeping the long tradition established under our name. Conducting our business with high standard of ethics and integrity is essential to building our reputation and reinforcingour values. This goes beyond compliance with applicable laws and regulations and requires a regard for principles of morality, humility, humanity, good behavior and justice. Our policies on Workplace Behavior (Violence, Sexual Harassment etc.) are clearly set out and must be adhered to.

Our Code of Conduct/Ethics set out the guiding principles by which we conduct our daily business witheach other, our customers, vendors, shareholders and with other stakeholders.

1. Local Laws and Regulations

It is the responsibility of the staff to comply with local laws and regulations of the variousauthorities of the Country. It is our responsibility to know the legal and regulatory framework of the country in order to ensure that we abide by these in terms of our daily work and that our products and services comply with the local regulations and laws.

Laws and regulations should also be understood in order to recognize any potential breach or shortcoming in our work or policies. Staff must report any such potential risks and must alertmanagement where they are aware of convictions for offenses involving theft, fraud, dishonestyor breach of trust involving themselves, colleagues or customers of the Group.

2. Confidentiality

Our clients and other parties with whom we do business entrust the Bank with importantinformation relating to their businesses. Confidential information concerning a customer or asupplier must never be disclosed to a third party except where required to do so by a statute or regulation, or a court order or other legal process or after the informed consent of the customer or supplier in writing.

Likewise, proprietary information (confidential information about the Banks business or businessplans, products and services, marketing methods, technology or systems) must never be

disclosed to a third party except pursuant to a statute or regulation or a valid final court order.

For these purposes, "confidential information" is non-public information about the Group or acustomer or supplier that would be useful to a competitor or important to an investor in decidingwhether to purchase, hold or sell any shares of a customer or supplier.

If there is a question of whether certain information is considered confidential, the staff shouldfirst check with their immediate supervisor(s). All inquiries from the media must be dealt with incontext of the Groups media policy (Flag - A).

Moreover, staff is strictly prohibited from disclosing the fact to the customer or any other quarter that a suspicious transaction or related information is being or has been reported to any authority,except if required by law.



Staff pay and benefits details must not be shared with or communicated by staff who have accessto this information by virtue of their role. Moreover, Medical, personal and private information heldon file or compiled by any service provider must not be shared or discussed with any other staff member.

Access to staff salary accounts must be strictly restricted and any access to staff accounts by

someone other than those who operate them must seek permission from the account holder.

Breach of confidentiality by staff will be treated as misconduct.

3. Conflict of Interest

A conflict of interest occurs when your interest in a competitor, customer or supplier is of suchextent or nature that it affects or it appears to affect your responsibility to the Bank. Examples of conflicts or potential conflicts include, but are not limited to the following:

i. Substantial borrowing or lending of private funds between staff and customers, suppliers

and other staff ii. Speculative business ventures with any customer or suppliersiii. Borrowing from other financial institution at terms better than those provided to the

general publiciv. Staff whose duties bring them in contact with an organization employing a family member v. Direct or indirect dealing with a customer or supplier with whom the staff have an actual

or prospective ownership, financial or other significant interestvi. An executive or officer:

• Who is a party to material contract with the Bank;• Is a director or officer of any entity that is a party to a material contract or proposed

material contract with the Bank; or • Has a material interest in any person who is a party to a material contract with the

Bank.

Moreover, a Bank staff shall not accept directorship of another corporation without the approval of the management. This includes charitable and non-profit organizations.

If circumstances exist in which staff feels that his or her responsibility to the Bank is compromisedor may appear to be compromised, those circumstances should be reported promptly to themanagement.

4. Mis-declaration & Forgery

A mis-declaration constitutes, amongst other reasons, the following examples:

• Any staff issuing an incorrect account statement, salary certificate or any other information for any customer, staff member or self

• Any staff issuing a fake claim for reimbursement of any expenses whereby either theexpenses are inflated and/or the expense is not incurred at all or submitting fake medicalcertificate

• Any staff forging signature or any information on the certificate issued by the Bank

5. Money Laundering and Due Diligence



Money laundering is how banks/customers are used to disguise or “launder” the proceeds of criminal activity.

The importance and sensitivity of customer identification cannot be understated. All efforts shouldbe made to determine the true identity of all customers requesting the Banks services. It isimperative to know enough about them to identify transactions which are inconsistent with their

business or personal status, or which do not match the normal pattern of activity.

It is the duty of the staff to stay alert to the risk of money laundering and to assist the Banksefforts in combating it. Any abnormality must be reported immediately to Compliance.

We have Banks anti-money laundering standards that should be followed beside the local anti-money laundering rules and regulations.

6. Fair Practice with Customers

Financial products and services are sophisticated tools and selling this product, calls for

knowledge, skill and judgment. The following points should be carefully followed when selling aproduct/service to any client.

The staff must not sell an unsuitable product (i.e. a product that does not meet the needs) of aclient. Doing so is mis-selling and may expose the Bank to regulatory penalties, reputationaldamage and legal action by customers.

The staff should know enough about the products they are selling and about the customer (e.g.risk, appetite, objectives, finances and personal circumstances) to judge the effect, which thoseproducts will have and whether they will meet the customers needs.

For all products, especially complex products, the staff must make every possible effort to assistthe client understand the product and its risks.

7. Bribery

Any staff will be guilty of an offense, who, without lawful authority:

• solicits or accepts any advantage as an inducement or reward for doing or intending tocommit any act in relation to the Bank’s affairs or business, or

• shows or intends to show favors or disfavor to any person in relation to the Bank’s affairsor business or

• offers any advantage to anyone as an inducement or reward for or otherwise, or • intends to deceive the Bank by using any receipt, account or other document which is

false or erroneous or defective in any way and which to his knowledge is intended tomislead the Bank

8. Gifts

Staff will not solicit or accept for personal benefit directly or indirectly any gift, loan or any item of substantial monetary value from:

Any person or company that is seeking to conduct or currently is conducting business

with the Bank A subordinate staff of the BankCandidates for employment at the Bank



However, accepting reasonable business entertainment (meals and accommodations) of normal value provided to staff by clients on Company business may be accepted.

Accepting high value gifts, where refusing would cause offense, and where an apology and areturn in not possible can be an exception. If accepted, gifts must be declared to HR along with afilled Gift Declaration Form. Local tax/laws apply

9. Computer, Email and Internet Usage

E- Mail and Internet usage is provided to those staff only, where their job assignment entailsinternet research/ usage.

The Bank Internet and e-mail access may not be used for transmitting, retrieving or storing of anycommunication of a defamatory, discriminatory or harassing nature or materials that are rated or obscene. No messages with derogatory or inflammatory remarks about an individual’s race, age,disability, religion, national origin, physical attributes or sexual preference must be transmitted.Harassment of any kind is prohibited.

Use of computer resources is strictly limited to business requirements. Staff should be aware thate-mails are not confidential and may be accessed for monitoring purposes. Any breach of ITsecurity protocol that involves private business use or unsuitable material will be considered as adisciplinary matter. Staff will be accountable for all activities created under their password in thiscase and treated as gross misconduct; therefore, the passwords must not be shared with anyone.

E-mail is not guaranteed to be private or confidential. All electronic communications are Bankproperty. Therefore, the Bank reserves the right to examine, monitor and regulate e-mailmessages, directories and files, as well as Internet usage.

Any staff who abuses the privilege of Bank facilitated access to e-mail or the Internet, may be

denied access to the Internet and, if appropriate, be subject to disciplinary action. Messages sentto all users should be restricted and approved by divisional / zonal heads.

10. Drug and Alcohol

In order to keep the Banks reputation intact, the use, sale or possession of narcotics, drugs,alcohol or controlled substances while on the job or on the Banks property is prohibited and is adischargeable offense.

Off-the-job drug use adversely affects staffs job performance, can jeopardize the safety of others, the public, or the Banks equipment, and also damages the Banks reputation as staff isrepresentative of their organization. In such situations disciplinary action up to and includingtermination of employment is inevitable.

Staff arrested for off-the-job drug activity may be considered to be in violation of this policy. Indeciding what action to take, management will take into consideration the nature of the charges,the staffs present job assignment, the staff record with the Bank and other factors relating to theimpact and circumstances of the staff arrest.

11. Borrowings

Staff should not indulge or engage in any financial matters including borrowings beyond their financial capacity and above the debt service ratio (50% of gross) specified in our policy.



Any directly or indirectly reported cases of non-compliance will lead to an in depth managementreview of the facts and may result in termination of services

12. Outside Employment

Employment with the Bank is and should be seen as a full-time occupation and for this reason

other employment or business association shall not be taken up without the written consent of theManagement.

For purpose of this section of the Code, “Outside employment of any kind” includes, but is notlimited to, acting as an officer, staff, proprietor, partner, agent, independent contractor or advisor or any similar capacity.

13. Bank Property

No items of the Bank may be removed from the premises without the authorization. Anydeliberate damage or carelessness that results in Banks property being damaged, stolen or lost

will be charged to the applicable Staff.

14. Other Items Requiring Acknowledgment

Register of Relatives

As a general policy the Bank does not discourage appointment of close relatives of staff of theBank.

Close relatives are defined as: husband, wife, child, parent, brother, sister, niece/nephew,parents-in-law, brother/ sister-in-law, son/ daughter-in-law. However, to avoid conflict of interest,

the placements of related staff will be made in separate branch (es) / division(s) or to positionswhere one relative may not have the opportunity to check, process, review, and/or audit or otherwise influence or affect the work of another relative. Moreover, in order to maintain arecord of all related staff it will be mandatory for such staff to disclose the detail of all suchrelative(s) to HRD.

This will also be reinforced by our code of conduct and disclosure requirements. It is your responsibility to inform the bank of such relationships.

Staff Loans with the Bank

Any staff loans that are not settled on departure from the bank for whatever reason(s) will besubject to an agreed repayment schedule on departure and will be subject to commercial ratesof interest.

I have read and understood the “Code of Conduct” alongwith “HR Rules & Policy Guidelines” and“Service Regulations”, and I undertake and confirm adherence to the same. I also acknowledgereceipt of a copy of the aforesaid documents.

Signature of Employee :

Name of Employee : Sirajuddin Azi

Employee # : 4356

Department / Branch : CE Secretaria

Zone / Division : Head Office

Date : 01-Aug-2013



Annexure ‘P-2’

TheCodeof Conduct

For theTreasuries of Banks, DFIsandPDs

May2014

DomesticMarkets&MonetaryManagementDepartment

State BankofPakistan



TableofContents

Definitions ..............................................................................................................................................4

Chapter I: BusinessHoursandMarketDisruption..............................................................................6

1. After-Hours/24-Hours andOff-PremisesDealing..............................................................................6

2.NewBankHolidays/SpecialHolidays/MarketDisruption...................................................................6

3. MarketDisruption..............................................................................................................................6

Chapter II: Ethics&Behavioral Standards............................................................................................7

1.Drugs andAbused Substances.........................................................................................................7

2. Entertainment, GiftsandFavors........................................................................................................7

3. Gambling/BettingbetweenMarketParticipants.................................................................................7

4. Fraud.................................................................................................................................................7

5.DealingforPersonal Account............................................................................................................7

6. MarketConduct................................................................................................................................8

7. Confidentiality...................................................................................................................................9

8.Misinformation/Misrepresentation, andRumors.............................................................................9

9. Customer Relationship,AdviceandLiability..................................................................................10

10. UseofConfidential Information...................................................................................................10

11. Professional Knowledge...............................................................................................................11

Chapter III: DealingPractice...............................................................................................................12

1.DealingatNon-currentRates andRollovers..................................................................................12

2. RateSetting...................................................................................................................................12

3. Stop-LossOrders...........................................................................................................................12

4. PositionParking.............................................................................................................................12

5. Consummationof aDeal................................................................................................................13

6.DealingQuotations, Firmness, QualificationandReference..........................................................13

7. FrivolousQuotes.............................................................................................................................14

8.DealingwithUnidentified/UnnamedPrincipals..............................................................................14

9.Deals usingaConnectedBroker .................................................................................................14

Chapter IV:Disputes,Differences, MediationandCompliance....................................................15

1.DisputesandMediation..................................................................................................................15

2.DifferencesbetweenPrincipals ......................................................................................................15

3.Differenceswith Brokersanduseof ’Points’...................................................................................15

4. ComplianceandComplaints...........................................................................................................16

5.MoneyLaunderingandTerrorist Financing.....................................................................................16



Chapter V:Authorization,DocumentationandTelephoneTaping....................................................17

1. AuthorizationandResponsibilityforDealingActivity.......................................................................17

2. TermsandDocumentation..............................................................................................................17

3. QualifyingandPreliminaryDealingProcedures..............................................................................17

4. RecordingTelephoneConversations andElectronic TextMessages..............................................17

5. UseofMobileDevicesfor TransactingBusiness.............................................................................18

6.DealingRoomSecurity....................................................................................................................18

Chapter VI:BrokersandBrokerage.....................................................................................................19

1. TheRoleof Brokers andDealer/Broker Relationship......................................................................19

2. Commission/Brokerage....................................................................................................................19

3. PassingofNamesbyBrokers.........................................................................................................19

4.NameSubstitution/SwitchingbyBrokers.........................................................................................20Chapter VII: BackOffice,PaymentsandConfirmations....................................................................21

1. Back /Front OfficeSegregationof Duties/Reporting.......................................................................21

2. TheConfirmationor AutomaticMatchingofTransactions..............................................................21

3.PaymentandSettlement Instructions.............................................................................................22



Definitions

Broker: An interbank broker accredited by Financial Markets Association of Pakistan (FMAP).

BrokerageHouse: An entity which has been accredited by Financial Markets Association of Pakistanforconductinginterbankbrokeragebusiness.

Business Days: A day on which the State Bank of Pakistan and banks in Pakistan are open for fullscalebankingbusiness.

Confirmation: The information exchanged and agreed between the counterparties of a trade atthe time of booking that details the financials of that transaction. The confirmation may, in addition,include the legal terms and settlement instructions. The confirmation process is fundamental inensuring operational risk is minimized for both parties to the trade and that settlement may takeplaceefficiently.

Insider dealing: Dealing in financial instruments based on confidential information about the issuer of suchinstrumentsortheinstruments.

Market disruption: an event which was not foreseeableat the time the transaction was entered intoand which is beyond the parties control. These include capital controls, illegality or impossibility of performance, ActsofGod, extremeweather, illiquidity, etc.

Master Agreement: A Master Agreement (or master contract) is a contract reached betweenparties, inwhichthepartiesagreetothetermsthat will governfuturetransactions or futureagreements. A Master Agreement permits the parties to quickly negotiate future transactions or agreements,because they can rely on the terms of the Master Agreement, so that the same terms need not benegotiatedforeachsubsequent trade.

Name switching/substitution: Wherebrokers will attempt tosubstitute a thirdnameto standbetweenthetwooriginal counterpartiestoclear thetransaction.

Normal hours: Timings announced by the State Bank of Pakistan for dealing by bankstreasuries

Off premises: Any locationother thanthedealingroomauthorizedtoconduct businessbythedealers.

PD: PrimaryDealerofGovernment Securitiesappointedby StateBank ofPakistanannually.

Product:Product means:i. MoneyMarket (includingall transactionsinvolvingGovernment Securities)

ii. ForeignExchangeiii. Equities

ReadyTransaction: Transactionsettledontransactiondate.

SpotTransaction:Transactionsettledoneortwobusinessdaysfromtransactiondate.

ForwardTransaction: All dealstobesettledafter twobusinessdaysfromthetransactiondate.

4



Standard Settlement Instructions (SSI): The agreement between two financial institutions whichdefines the receiving agent bank details for the settlement of trades for a specific currency. Theseagreementsallowamoreefficientandcontrolledprocessin settlingtrades. UtilizingSSI mayalso lower thepotential forfraud.

Third party beneficiary: Recipient of the payment different to the counterparty of the relevant

trade.

Unscheduledholidays: Newbankholidaysornon-business/clearingdays announcedbytheStateBankofPakistan/Government of Pakistanasthecasemaybe.

5



ChapterI: BusinessHoursandMarketDisruption

1. After-Hours/24-HoursandOff-PremisesDealing

Deals transacted after normal hours or from off premises, either by mobile phone or any other equipment should not be undertaken without the prior written approval of StateBank of Pakistan.

Management should alsolist thenamesof thedealersauthorized todeal in off-premisesor after-hourstransactionsandstipulatetheprocedureforthepromptreportingand recordingthereof incaseofBCP.

2. New BankHolidays/SpecialHolidays/Market Disruption

In the event a country or a state declares a newnational bank holiday or any other occurrence whichwould prevent settlement of banking transactions on a specific date, the following procedures areaccepted as market practice for adjusting the settlement date of outstanding currency transactionsmaturingonthatdate.

(a) On Unscheduled Holidays, unless the bilateral agreements between the partiesconcernedspecifically providesforsuchsituation, it ismarket practice toextendcontractsmaturing

on a non-business day tothe next business day. If it isa monthend, the settlement datewill be 1business day prior to the non-business day, unless, unavoidable circumstances lead to the nextbusinessday settlement.

(b) Valuedates in foreignexchangetransactionswill not besplit other than incases wherebothpartiesmutuallyagree.

3. MarketDisruption

There are instances where the parties are prevented from performing their obligation under atransactionduetoan event, whichwasnot foreseeableat thetimethe transactionwas enteredintoandwhich is beyond the parties control. These include: capital controls, illegality or impossibility of performance, actsofGod, etc.

Market participants are encouraged to provide for these events in their contracts and adopt theappropriateprovisions in order toavoiddisputesasmuchaspossible.

Where there are instances of general market disruption caused by sudden events such as extremeweather or other unforeseen developments, State Bank of Pakistan “(SBP)”, may intervene with thepublication of applicable procedures including interest rates to be implemented to cover interruptedsettlement.

6



ChapterII: Ethics&BehavioralStandards

1. DrugsandAbusedSubstances

Dealing roomstaff is prohibited tocarryondealingunder the influenceof abused substances. Policiesshould bedevelopedandclearly announcedfordealingwith individualswhoarefoundtobesubstanceabusers.

2. Entertainment, Gifts andFavors

Management or employeesmust neither offer inducements to conduct business, nor solicit themfromthe personnel of other institutions. However, it is recognized that gifts and entertainment may beoffered in the normal course of business; suchgiftsor entertainment should not be excessive invalueor frequency.Management ofbanks should:(a) monitortheform, frequency andcostofentertainment/giftsthat thedealers receive,(b) have a clearly articulated policy towards the giving/receipt thereof, ensuring it isproperly

observed,(c) establish procedures for dealing withgifts judged tobeexcessive but which cannot bedeclined

without causingoffence(d) ensurethetransparencyof all entertainment received or provided.

Dealers should notify their management when they are offered unusual favors. Dealers inBanks/DFIs/PDsshouldfollowtheinternal giftspolicyprevalent intheirorganization.

3. Gambling/BettingbetweenMarket Participants

Making or arranging bets or wagers between market participants is strictly forbidden and strongmanagement involvement in its control is recommended.

4.Fraud

Strong administrative controls are recommended to prevent the occurrence of fraud. As there areseveral ways in which an institution can bedefrauded, great vigilanceis requiredby managementandstaff, particularly so when calls are received on an ordinary telephone line (usually in principal toprincipal transactions).

As a precautionary measure, it is strongly recommended that the detailsof all telephone deals whichdo not include pre-agreed standard settlement instructions should beconfirmedby telex or similar means by the recipient seeking an answer-back to ensure the deal is genuine. Particular careshouldbe taken in checking authenticity where the beneficiary is a third party or other than the transactioncounterparty. In theevent ofany suspiciouscircumstancesstaff mustnotify management withoutdelay.

5. DealingforPersonal AccountThe practice of dealing for personal account either in-house or externally has several implicationsincluding credit risk and potential conflict of interest. Where dealing for personal account is allowed,management should ensure that adequate safeguards are established to prevent abuseor insider dealing in any form. These safeguards should also reflect the need to maintain confidentiality withrespect to non-public price sensitive information and to ensure that no action is taken byemployees which might adversely affecttheinterestsof the institutions clientsorcounterparties.

Management should have a clearly defined policy for personal transactions of staff

7



including investment. Written procedures should be in place to cover these transactions as well asthose on behalf of the dealers family and other relevant employees of the institution.

Management should be aware that a conflict of interest may arise if traders are permitted todeal for themselves in those instruments or products closely related to the ones in which they deal for their institutionandshouldstipulateclearlywhichones, if any, thedealerscantradeinfor theirownaccount.

Particular careshouldbeexercisedwheredaytradingforpersonal account is concerned. Thereshouldbea full disclosure and transparency requirement ensuring that the traders give their full attention totheir institutions business without being distracted by personal financial concerns. In this respect,where dealing for personal account is permitted, managements written procedures should clearlystipulate the institutions control policy in relation to the unprofessional practice often referred to asfront running. This arises where anemployee could executea personal trade in advance of a clientsor institutional order to benefit from an anticipated movement in the market price following theexecution of a large trade. Traders should recognize that they too have a responsibility to identifyand avoidconflictsof interest.

6. MarketConduct

All Dealers must observe proper standards of market conduct at all times. Banks/DFIs/PDs shouldimplement internal policies andprocedureswhichprohibitall forms ofmarket misconduct.

Dealers should exercise skill, care and diligence, and act in good faith. Dealers shall not engage inmanipulative or deceptive conduct or any form of conduct which would give other users of themarket a false or misleading impression as to prevailing market conditions, including but notlimitedtoprice,supply ordemand,etc.

Dealers should not enter into any transaction which may conflict with a duty of care owed to acustomer, unless such conflict is disclosed to the customer and the customer consents to the

transaction. In particular where market participants are handlingcustomer orders, theseorders shouldbehandledappropriatelyandwithdueregardtothebest interests of thecustomer.

Dealers must exercise extreme care when in possession of material non-public, price sensitiveinformation in relationto the financial instruments. Subject to applicable laws and internal policies andprocedures,wheninpossessionof suchinformationDealersmust ensurethat theydonot deal for their own account or the account of the institution whichthey represent, or induce another party tosodeal,on thebasisof such information. For the avoidance of doubt if a Dealer is working a pending order from a client and which could have a significant impact on the price of that instrument, theknowledge of that order would constitute material non-public, price sensitive information for thepurposesof thiscodeofconduct.

Dealers must not willfully spread rumors or disseminate false or misleading information. In addition,care must be exercised when handling unsubstantiated market information. Client communications inparticular should have a reasonable basis, be fair and balanced, and not contain any inaccurate or misleadinginformation.

8



7. Confidentiality

Confidentiality and customer anonymity are essential for preserving a reputable and efficientmarket place. Dealers and brokers must preserve, and aid in preserving, confidentiality in all mattersincluding information on customers and dealing counterparties coming to their knowledge in theperformanceof theirduties.Theyshareanequal responsibilityforpreservingthe integrityof the marketthroughthe proper maintenance of confidentiality. Management is responsible for ensuring that their

staff have been trained to identify and to treat information that is sensitive and to dealappropriately with situationsthat requireanonymity and discretion. Also, managers must not condonestaff utilizingconfidentialmaterial forpersonal benefit.

Brokers shall not reveal the identity of their Principals to any deal unless when appropriateunder theaccepted terms of disclosing namesor whenexpressly authorized to do so bythe Principals. Dealersshall ensurethat theidentity ofcustomersandcounterpartiesisalwayskeptconfidential.Banks names shouldnever bediscloseduntil thedeal isclosed. Brokersshouldnot divulgethe namesof Principals or counterparties prematurely. Names should be revealed only when the broker issatisfiedthatbothsidesseriously intendtotransact.

A dealer shouldnot, in any way, pressure a broker by inducement, threat or promise, for information,which would be improper for the latter to divulge. Pressure includes any statement tothe effect, or which could be construed as implying, that a failure to cooperate would lead to a reduction in thebusinessgivenbythedealer or other dealerstothebroker. Dealersshouldsimilarly resist anypressurefrom their clients to divulge confidential information and should report any such incidents to their management.

Market participants should not visit each others dealing rooms except with the specific permission of their respective senior managements. No deals should be concludedby dealers in brokers dealingrooms.

Theuseof loudspeaker equipment to channel confidential information to third parties is improper andshould not be allowed. If loudspeaker equipment must be used such device should be carefullymanagedtoprevent anybreachofconfidentiality, inadvertentor otherwise.

Communications tools – including email and instant messaging tools can benefit businesscommunications but can also be abused to inappropriately share proprietary, confidential or materialnon-public information, or for inappropriate or non-business related communications. Controlsimplemented should include prohibition on non-approved tools, restriction on sharing of login IDsand passwords, restriction on use of such tools for business only, and implementation of measurestoenhanceintegrityof theinformationtrail formonitoringor investigation.

8. Misinformation/Misrepresentation, andRumors

Financial markets are generally responsive to news on related developments. Dealers should notrelay any information which they know to be false and should take great care when discussingunsubstantiated information which they suspect to be inaccurate and refrain from passing on anyinformationwhichtheyknowtobeuntrue.

9



9. CustomerRelationship, AdviceandLiability

Treasury product offerings by financial institutions to customers have become much more complex,sophisticated and advanced in their applications. The objectives of customers for entering into suchproducts can be diverse. Financial institutions and more in particular sales and advisory personnelshould be mindful of the level of knowledge, sophistication and understanding of their customerswhen giving advice on the use, application or outcomeof theseproducts.

Ingeneral, all financial market transactionsarepresumedtobeonanarms lengthbasisunlesspartiesexplicitly acknowledge otherwise. All such transactions are entered into solely at each partys risk.When dealing with customers, the financial market professionals are advised to clarify the foregoingnaturebyexplicitly agreeinginwritingthat:

(a) thecustomerunderstandstheterms,conditionsandrisks of thattransaction;

(b) thecustomermade itsownassessment andindependentdecisiontoenterinto suchtransactionandisentering intothetransactionat itsownrisk andaccount;

(c) the customer understands that any information, explanation or other communication by the other

party shall not be construed as an investment advice or recommendation to enter into thattransaction;

(d) no advisory or fiduciary relationship exists between the parties except where laws, rules andregulations would qualify the serviceprovidedbythe financial market professional to thecustomer asan advisoryorfiduciaryrelationship.

These requirements will not be applicable in case of FX ready and spot transactions, with thecustomer. Theserequirementswill alsonotbeapplicableonMoneyMarket productswith tenorsof lessthanoneyear.

These requirementsshouldeither beclearlyset out at the onset of the trading relationship inwritingor

includedaspart of theconfirmations.

For its own protection, prior to the transaction, the Bank/DFI/PD should endeavor toprovideallnecessary information reasonably requested by the customer so that the customer fully understandsthe effects and risks of the transaction. Bothbeforeand after entering into the transaction, it may, if itdeems appropriateunder the circumstances, alsoprovide anyadditional information or material it maythink fit as a precautionary measure against future adverse allegations or assertionsof claims by thecustomer.

The Bank/DFI/PD should be familiar with applicable laws, rules and regulations in the jurisdictions inwhich it conducts business. It should seek advice of its legal counsel in each jurisdiction wherever appropriate or prudent to do so. It may wish to consider incorporating such legal advice into its owninternalpoliciesand/orprocedures.

10. Useof Confidential Information

In the normal course of business, dealers and sales staff are often entrusted with proprietaryand materially price-sensitiveinformationbytheir management, clients andcounterparties. Todisclosesuch confidential information to unrelated parties - and, in some cases, to related parties - withoutconsent before it becomes public is unethical and a breach of confidentiality. Dealing in financialinstruments basedonconfidential information.

10



about the issuer of such instruments or the instruments themselves constitutes insider dealing andpossibly market abuse.

Dealers and sales staff should not, with intent, profit or seek toprofit fromconfidential information, nor assist anyone with such information tomakea profit for their firmor clients. Dealers should refrainfrom trading against confidential information, and they should never reveal such information

outside their institution, even after they havechanged employment.

Banks/DFIs/PDs must have in placeclearly documented policies and procedures, and strong systemsand controls, to manageconfidential information withinthedealingenvironment andother areas of theinstitution which may obtainsuch information. Thisshould include, where appropriate, Chinesewallsto restrict the internal distribution of confidential information to those who need toknowin order tobeable to execute orders for customers or for compliance purposes. Appropriate sanctions should beavailable to and used by management against staff whodonot comply withpolicy or procedures, or breach controls. In the event of a breach of controls, management should act promptly to investigatethe breach and should take appropriate steps to rectify the weaknesses that allowed the breach tooccur and prevent any recurrence. Management has a responsibility to inform dealers of the

requirementsof relevant legislationandregulations.

11.Professional Knowledge

It is important tomaintainaconsistently high level of awarenessandunderstandingof marketpracticesand conduct among dealers and brokers so as to reinforce the foundation for strengthening overallprofessional standards of thedealingcommunity. Therefore, market participantsmust ensure that their professional knowledgeis competently maintainedsothat theinterestsof their customersareprotectedandthereputationof the marketspreserved.

11



ChapterIII: DealingPractice

1.DealingatNon-current Rates andRollovers

Dealsat non-market ratesshouldbeavoided, particularly for extensionorrolloverof a maturingforwardcontract, as suchpractices may result in concealment of a profit or loss; in the perpetration of a fraud,tax evasionor the givingof anunauthorizedextensionof credit. Whensetting the rates for theswap to

extend the maturity, the spot rate should be fixed immediately within the current spread, to reflectcurrentratesatthetimethetransactionwasdone.

In order to avoid misunderstandings it is recommended that the big figure be included in all outrightand spot FXquotations. However, it is common practice inmarkets for market makers toomit the bigfigure in their quote for the sake of brevity and efficiency. This is done confidently, secure in theknowledgethat thetrueor correct big figure isunderstoodbybothparties and, if necessary, verifiablefromofficial market data. Where disputes arise in quotations, it ishighlyunethical for onepartytoholdanothertoanerroneouslyagreed ratewherethequotation isdemonstrablyandverifiablyabigfigureor more awayfromtheprevailing market rate. If, however, highvolatility at the timeof the tradewas suchthat there wasreasonable doubt asto thecorrect big figure documented by authentic market records,then the rateagreed at the time of the trade should prevail as long as it was within the authenticatedwidermarket spreadat thetimeof thedeal.

2.RateSetting

All market participants contributing in benchmark rates related to exchange rate and interestrate, should do so in a timely and honest manner. They must alsomakethe necessary organizationalarrangements to ensure that contribution of the rates is possible on a permanent basis withoutinterruption due to human or technical failure. Management should ensure that employees are fullyawareof therelevant laws andconsequences involvedwithratesetting.

3. Stop-LossOrders

A clear understanding of all the conditions and ramifications should be reached between both partiesbefore a stop-loss order is placed and accepted. Where a dispute arises as to whether the marketreached the level required to trigger the execution of the order, it should be borne in mind thatwhicheversource is used toverify the market range, a totally accuratedefinitive record may bedifficultto obtain. Any one source such as an individual brokering company that may be asked to indicatemarket highs and lows maynot alwayshave the full trading rangefor theday andcanonly indicatethehighsand lowswhichit has seen. All recognized significant market sources (Bloomberg, Reuters etc)should therefore be canvassed. The resulting information should be treated with discretion andprofessional caution.

4. PositionParking

PositionParking is thepracticewhereby twocounterparties agreea deal, usuallyontheunderstandingthat the contract will be reversedat a specified sameor later date, at or near the original contract rateirrespective of the interim market rate change. The consequence of such an agreement is that for aperiod of time, theobligations of an institutionare excludedfromitsbooksofaccount andmanagementorregulatoryoversight.

12



These transactions could be undertaken either on the initiative of dealer to mask risk positions(usually in FX) thereby misleading management or on the initiative of banks to disguise speculativepositionsfromauthoritiesonorduring reportingperiod. Therecould alsobetaxavoidanceimplications.

Under no circumstances should market participants engage with any counterparty in artificialtransactions for the purpose of concealing positions or transferring profits and losses, sometimes

referredtoaspointsorpositionparkingwithany counterparty.5. Consummation of aDeal

Dealers should regard themselves as bound to a deal once the price and any other key commercialterms have been agreed. However, holding brokers unreasonably to a price is viewed asunprofessional andshouldbediscouragedbymanagement.

Whereprices quoted are qualifiedasbeingsubject tonegotiation of commercial terms, dealers shouldnormally treat them as bound to deal at the point where the terms have been agreed withoutqualification.

Verbalagreements areconsideredbindingandthesubsequentconfirmationis regardedas evidenceof thedeal, but shouldnotoverride termsagreedverbally. Thepracticeofmaking atransactionsubjecttodocumentation is not regardedasgoodpractice. In order to minimize the likelihoodof disputes arisingonce documentation is prepared, firms should make every effort to agree all material points quicklyduring the verbal negotiation of terms and should agree any remaining details as soon as possiblethereafter.

Wherevoicebrokersareinvolved, it is their responsibilitytoensuretheprincipal providingthe price or rate is made aware immediately it has been dealt upon. Under no circumstances shouldbrokerage firms informdealer that a deal has been concluded when infact ithasnot.

6. DealingQuotations, Firmness, QualificationandReference

The obligation to trade at a quoted price and the procedure for qualifying quotes should be fullyunderstoodbybothdealersandbrokers.

All market participants, whether acting as principal, agent or broker, have a duty to make absolutelyclearwhether theprices theyarequotingare firmormerely indicative. Pricesquotedbybrokersshouldbetakentobefirm inmarketableamountsunlessotherwisequalified.

A dealer quoting a firm price (or rate), is bound to deal at that price (or rate) in a marketableamountprovidedthe counterpartyname is acceptable. Whendealingin fast- moving markets a dealer has toassume that aprice given toa voice broker is good only for a short length of time, typically amatter of seconds. However, this practice would offer roomformisunderstandings about howquicklya price is deemed to lapse. Brokers should makeevery effort toassist dealers bychecking with themfrom time to time whether their interest at a particular price or rate is still firm. If the principal hasreached its credit limit for a particular counterparty, principal can reject the transaction. It is notanacceptable

13



practice for a principal to revise a rate, which was firm subject to credit once the name of thecounterparty hasbeendisclosed. Brokers and principals should work together to establish a range of institutions for whomtheprincipals rate is firmsubjecttocredit.

7. FrivolousQuotes

Dealers are strongly cautioned against making frivolous quotes which they have no intentionof

honoringandwhicharedesignedmerelytomisleadmarketparticipants.

Dealers should not engage in practices, which may realize immediate gain (or avoid loss) but maycompromise their employers or their own reputation. Dealers should promptly report to their management whenever theyspotother brokersordealersactinginawaythat jeopardizestheinterestsorreputationofthetreasurymarket, suchasunsubstantiated “spoofing” (that is, adealer puttingquotesin the market and withdrawing almost immediately toavoid being hit as he does not intend todeal atthat price).

8. Dealingwith Unidentified/UnnamedPrincipals

It is good practice for the Compliance, Legal and Credit functions within an institution to have full

knowledge of the end principal’s identity, prior to the execution of a transaction, in order that credit,"KnowYour Customer", anti-money laundering andpotential fraudissuescanbeaddressed.

9. Deals using a‘ConnectedBroker

Complete disclosure is necessary where there is a shareholding or material connection between thebroker and one of the principals. In order to avoid any potential conflict of interest and safeguard theindependence of thebroker / dealer, it is important thatall the relevant informationisdisclosedandthattheprincipalsarefully aware of thesituation.

Banks/DFIs/PDs shouldsolicit informationfromall their front office personnelwhetherany of their closerelativesareworkingin treasury ofanyBank/DFI/PDoranyoneofFMAP accreditedForeignExchangeor Money Market interbank brokerage houses. Compliance Department of each Bank/DFI/PD willcollect this informationand will sharethesamewith SBPinJanuary &July every year.

Closerelativesshould includespouse, parents and parents-in-law, sonsand daughters, brothersandsisters,brothers-in-lawandsisters- in-law, nieceandnephew, uncleand aunt andcousins.

14



ChapterIV: Disputes,Differences,MediationandCompliance

1. DisputesandMediation

Wheredisputes arise, it is essential that the management of theparties involved takepromptaction toresolveorsettletheissuequickly andfairlywithahighdegreeof integrity andmutual respect.

In situations where the dispute cannot be resolved between the parties and where all normalchannels have been exhausted, State Bank of Pakistan or its designated teamwill assist in resolvingsuchdisputes.

2. DifferencesbetweenPrincipals

Differences between principals frequently arise and when they occur every effort should be made toobtain aquick resolutionwith theearly involvement of management.

All disputes shouldbe routinelyreferred to senior management for resolution, thereby transforming thedisputefromanindividual trader totraderortrader tobrokerissuetoan inter-institutional issue.

Where a dispute involves the amount, currency, value date(s) (or any other factor which means thatone of thetwopartiesconcernedhas anopenorunmatchedposition), it is strongly recommended thataction should immediately be taken by one of the parties concerned (preferably with theagreement of theother) tosquareoff or neutralize theposition. Suchactionshall beseenasanact of prudencetoeliminatetherisk of further loss resultingfromthedisputeandshall not beconstruedasanadmissionof liabilitybythatparty.

Wherepayments havebeen made towrongaccounts, all parties involved, includingthosewhoarenotcounterparties in thetrade, shouldco-operatetoachieveafairsettlement.

3.Differenceswith Brokersanduseof’Points’Whereabrokerquotes a firmorunqualifiedprice in aparticularmarket or instrument for a specified or market amount and is subsequently unable to substantiate the quote when a deal is proposed, thebank proposingthe trade is fully entitled tohold or stick thebroker to the pricequoted. Thispractice,which should not be a regular occurrence, is sometimes referred to as stuffing the broker. Thiseffectively means that the broker must make good the difference or loss to the proposing bankbetween the price quoted and the price at whichthebusinessisconcluded.

Wherethesedifferencesarise, thefollowingguidelinesforcompensationshouldapply:

a) Differences should be routinely referred to senior management for resolution, thereby changingthe dispute from an individual trader/broker issue to an inter-institutional issue. Allcompensationshould takethe formof a bank chequeor wiretransfer in thenameof the institutionoradjustment tobrokeragebills.

b) All such transactions should befully documented byeach institution. It is bad practice to refuse abrokers cheque or reduction in the brokerage bill for the amount concerned and to insist on anameat theoriginalprice.

15



4. ComplianceandComplaints

It is important that all market participants understand that compliance with The Code of Conduct isessential to maintain a disciplined market with high ethical standards. To this end, SBP inspectionteam will check the compliance of Code of Conduct during regular inspectionof Banks/DFIs/PDs.

5. MoneyLaunderingandTerroristFinancing

Banks/DFIs/PDs must follow the instructions/regulations issued by State Bank of Pakistan regarding Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) from time to timeand have clearly documented policies and procedures, and strong systems andcontrols, toavoidbeing exploited for money laundering or terrorist financing. Banks/DFIs/PDs must also ensure that,where any member of staff has any knowledge or suspicion of these activities or reasonablegrounds for suspicion, this knowledge or suspicion is promptly reported by the institution to theresponsible public authority. Measures must include effective training for staff in the front, middle andback offices. Trainingshouldensurethatstaff areawareoftheseriousnatureoftheseactivitiesandtheobligations on them to promptly report any knowledge or suspicions, while not revealing their knowledge or suspicions to the suspected criminal or terrorist. They should betrained to recognize an

offence or form a suspicionwhere there are responsible groundsfor doing so. They must alsoknowtowhomtoreport withintheir institution.

16



ChapterV:Authorization,DocumentationandTelephoneTaping

1. AuthorizationandResponsibility forDealingActivity

Theprocess of appointmentorauthorizationof treasurydealers totradehas become an importantandmore formal function of control in recent years. This official recognition of individual dealers’ roles andauthoritymustbeset out inwritingbymanagement sothatthereisnoambiguityastothetransactions,

instruments,markets or tradingplatforminwhichthedealer isempoweredtotrade.

2. TermsandDocumentation

It is nowcommon for OTCmarket deals tobesubject tosome formof legal documentationbinding thetwoparties tocertainstandardconditionsandundertakings. Thesecancompriseeithersignedmaster agreementsexchangedbetweenthetwoparties or cantaketheformofstandardterms.

Legal documentation covering instruments and transactions should be completed and exchanged assoonaspossibleafter adeal isdone, andtheuse, wherever possible, of standardtermsandconditionsto facilitate this process is recommended. When usingsuch agreements, any proposed modificationsorchoicesofferedin the agreement must beclearly statedbeforedealing.

3. QualifyingandPreliminary Dealing Procedures

Where quoted prices are subject to any qualifying conditions, these should be statedupfront or prior toquoting.Theseinclude:whereapriceisquotedsubjecttothenecessarycredit approval; findingcounterpartyformatchingdealsortheability toexecutean associatedtransaction.

4. RecordingTelephoneConversationsand Electronic TextMessages

The use of recording equipment in banks/DFIs/PDs is mandatory. All conversations undertaken bydealers and brokers should be recorded, together with back office telephone lines used by thoseresponsible forconfirmingdealsorpassingpayment orother instructions. Completerecordofelectronic

communicationmodesused in theprocess of transactingbusinessshouldbesaved&storedproperly.

When initially installing tapeor other recording equipment, or taking on newclients or counterparties,Banks/DFIs/PDs should take steps to inform their counterparties and clients that conversations andmessages will be recorded. Theperiodsfor which tapesand other records should be retainedshouldreflect the way in which the terms and conditions of transactions have been agreed, duration of transactionsandasper requirement ofSBPif any.

There should be a clear written policy on whether and to what extent telephone conversations aretaped and electronic text messagesare recorded and how longtapes and other records are retained,explicitly taking into account legal and regulatory requirements. This policy should be reviewed

regularly bymanagement. It should alsobeensuredthatall disputesareresolvedbeforerecordeddataisdiscarded.

The policy on taping telephone conversations and recording electronic text messages

17



should impose controls to ensure taping and other recording is not deliberately or inadvertentlyinterrupted. There should also be controls on access to tapes and electronic text message records,whetherinuseorinstore, in order topreventtampering.

However, dealers and other staff are reminded that, whether or not conversations are beingtaped or electronic text messages are being recorded, telephones and electronic text messaging

systems in the institution are intended for business use and conversations and exchanges of textmessagesshouldbeconductedinaprofessional manner.

5. Use of Mobile DevicesforTransacting Business

The use of wireless communicationdevices (whether they areprivately owned or company owned) totransact business can undermine the controlled environment in dealing rooms with fixed linetelecommunication, tape recorded handsets and essential audit trails for all transactions. The use of wirelesscommunicationcan leadtounauthorizedtradesby authorized or unauthorized personnel onor off premises and potential misuse ofconfidential information.

Management should have clearly written guidelines to prohibit the use of these devices by trading,

sales and settlement staff because it can be used to circumvent telephone recording andcompromise confidentiality. The use of wireless communication devices within the dealing room isstrictlyprohibitedexcept inanemergency ordisaster recovery situation.

6. DealingRoom Security

Senior management should recognize the importance of strict security controls governing treasurypersonnel, access to the treasury area, dealing room equipment and systems. Specific andstringent access controls should be in place to cover treasury IT systems equipment and confidentialinformation. Access to the dealingroombyboth non-treasury personnel andvisitors should be limitedin terms of frequency and duration. All staff should be vigilant and immediately report to senior management any suspicious activities or unusual requests for accesstoor information on treasury

businessorsystems.

18



ChapterVI:BrokersandBrokerage

1. TheRoleofBrokersandDealer/BrokerRelationship

TheCodeof Conductdefinesthe role of brokers in the OTCmarkets and strongly recommends activemanagement involvement inmonitoringdealer/brokerrelationships.

The role of brokers is to act only as intermediaries or arrangers of deals. In this capacity theyshould agree mutually acceptable terms between principals to facilitate the consummation of transactions. Senior Management shouldestablish theterms underwhichbrokerage service is to berendered, agree that any aspect of the relationship can be reviewed by either party at any time,and be available to intercede in disputes as they arise. Management of both trading institutions andbrokerage firms should ensure that their staffs are aware of and in compliance with internal policiesgoverning the trader/broker relationship. Thesenior management shouldmonitor thepatternsof broker usage on quarterly basis and bealert topossible undue concentrations of business. If brokerage paidtoanybroker exceeds25%of thetotal brokeragepaid for that product, thesameshouldbe reportedto ALCO where it should be discussed and recorded with rationale. The broker usage should be

monitoredseparately for MoneyMarket, FXandEquityproduct classesand approvedlist of accreditedbrokersshouldbereviewed/ approvedby ALCOonannualbasis.

2. Commission/Brokerage

Any solicitation or offer of waiver from prescribed Brokerage Rates Schedule by Product by either dealers or brokers would also be construed as monetary inducements to conduct business. Hence,there should not be any instances, whereby waiver are given on brokerage fee from the prescribedBrokerage RatesSchedule as agreedto and circulated by FMAP. However, the Banks/DFIs/PDs cannegotiate rateswithbrokersbi-laterally whichshouldbeclearly documented. Once negotiated andapproved by the management of theBank/DFI/PD, thenthereshouldnot beanytransaction-wisenegotiation or waiver of brokerage. The only exception tothis condition would be transactions that are

executed purely for “Routing Purpose”, i.e., name change due to credit limits constraints betweencounterparties after disclosure of names. Such dealsshould beclearly marked & periodically checkedbyInternal Audit andCompliance.

3.Passingof NamesbyBrokers

Brokers should not divulge the names of principals prematurely, and at all times, treat the details of transactions as absolutely confidential to the parties involved, until satisfied that both sides display aserious intention to transact. Bank dealers should, wherever possible, give brokers prior indication of counterparties with whom, for whatever reason, they would be unwilling to do business (referring asnecessarytoparticularmarketsor instruments).

In all transactions, brokers should aim to achieve a mutual and immediate exchange of names.However, this will not always be possible. There will be times when one principals name provesunacceptabletoanother; and the broker will quiteproperly decline todivulge bywhomit was refused.Thismaysometimesresult in theprincipal, whosenamehasbeen rejected, feelingthat thebrokermayhaveactuallyquotedapriceor ratewhich it couldnot in factsubstantiate.

In such cases, some neutral body (FMAP Technical Committee) may be prepared to

19



establish with the reluctant counterparty that it did have business to do at the quoted price and thereasons why the name was turned down, so that the aggrieved party can be assured theoriginal quotewasvalidwithout, ofcourse, revealingtheproposedcounterpartys name.

4. Name Substitution/Switchingby Brokers

The practice of name switching/substitution is both acceptable and desirable provided the underlying

conditions justify it and the switching transaction has been approved by individuals who have theappropriateauthority.

Brokers typicallydonot reveal thenames of counterparties until theamountand rateare agreedupon.It is therefore possible that, after these details are agreed, the name of one counterparty may proveunacceptabletotheotherduetotheunavailabilityofacredit line. In thesecircumstances, it isacceptedmarket practice that brokers will attempt to substitute a third name to stand between the two originalcounterpartiestoclearthetransaction.

Finally, adealermustnot seek or acceptfavorsfromthebrokerforswitchingnames.

20



ChapterVII: BackOffice,PaymentsandConfirmations

1. Back /FrontOffice Segregationof Duties/Reporting

Strict segregation of front and back office duties and reporting lines should be observed. Where themiddle office has a control or administrative function a similar segregation of duties and reportingshould apply. The incentive and compensation plans for back office and middle office personnel

shouldnotbedirectly relatedtothefinancial performanceof thetraders.

2. TheConfirmation/AdviceorAutomaticMatchingofTransactions

Oneof the essential risk controls for institutions dealing in financial markets has been the independentconfirmation of a transaction by the back offices/branch operations/trade processing units. Failure toensurethat confirmationshavebeensentandacceptedhascontributedtomany incidentsofdeceptionby rogue dealers. Confirmation of the details of a transaction between the counterparties should beindependent. Confirmations should be sent out in writing by an efficient and secure means of communication as quickly as possible after a transactionhas beenagreed. Only interbank ready/spottransactions can be exempted from this requirement, however, for all other transactionsconfirmation/adviceofdetails of thetransactionisnecessary.

This procedure helps to prevent settlement problems by identifying discrepancies in instructions inadvance of the settlement day. It also provides assurance to management that dealersarereportingtheir positions accurately and provides an audit trail for subsequent investigation. In the event of adisputeover the termsof a transaction, validconfirmationscanbeusedasevidenceof thetermsof thecontract.

The format and content of a confirmation will vary according to the instrument dealt in and referenceshould be made to any applicable Terms and Conditions published in order to ascertain the correct

content and format for any particular instrument. At a minimum, however, all confirmations shouldincludethefollowinginformation:

(a) Dateof transaction(b)Bywhichmeanseffected(broker, phone,telex, dealingsystem, E-Bondetc.) (c)Nameandlocationofcounterparty(d) Rate, amount andcurrency(e) Typeandsideof deal(f) Value date, maturity date and all other relevant dates (e.g. exercise date, etc.) (g)Standardterms/conditions applicable(e.g. FRABBA, BBAIRS, ISDA, ICOM, etc.) (h) Other important, relevant information(e.g. settlement instructions).

Brokers should confirmall transactions to both counterparties immediately by an efficient and securemeansofcommunication. All deal ticketsandbroker contractsshouldbetime stamped.

If a counterpartys confirmation is consideredincorrect, the counterparty must immediately beinformed(preferably inwritingorbyelectronicmeans).Anewconfirmation(or written agreementtoacorrection)shouldberequestedfromandprovidedbythecounterpartywhoseoriginal confirmationwasincorrect.

21



If a counterparty or customer does not respond toconfirmations within appropriate time, the senior management of theparty issuing the confirmations may need to consider what measures should be taken to protect their institution in theevent ofproblemsarisingfromtheunconfirmedtransactions.

3. Payment andSettlement Instructions

Errorsor misunderstandings in payment and settlement instructionsfrequently result in expensiveoverdrafts and interest

claims. Prompt, clear and early instructions are a priority. The use, where possible, of Standardized SettlementInstructions(SSIs), helps to eliminatecostly mistakes.

However, in foreignexchangeandmoney markets, it isnot customaryfor brokers topasspayment instructions, but thecounterparties themselves must exchange instructionswithoutdelay.

Whether dealing direct or through a broker, principals should ensure that alterations to original standard paymentinstructions, including thepaying agent where thishas been specifically requested, should be immediately notifiedto thecounterparty, and where a broker has been used and at least one of the principals is in another country, to the broker also.Thisnotificationshouldbesupportedbywritten, telexor similarconfirmationof thenewinstructions, receipt ofwhichshould beacknowledged by thecounterpartyconcerned. Failure to inform the broker of a change in instructions could

clearly place the liability for any ensuing difference with the principal. Where the beneficiary of a transaction is a thirdparty, it is managements responsibility to ensure that appropriateauthentication controls are in place for thepayment tobeexecuted.

22



Annexure ‘Q’

HO/HRD/APP-__________/20 Human Resource Division

Date:_____________________

Mr.______________

_____________________

_____________________

_____________________

DearSir

With reference to your application and subsequent interview, we are pleased to

inform you that you have been selected for service in our Bank as ______________________ .

Your assignment will be apprised to you upon joining. You will directly report to the

concerned ________________________.

The salary package [inclusive of all] and other terms and conditions of your

engagement on ___________ basis will be, as already mutually agreed, duly elucidated in

the _________ agreement/appointment letter to be executed on the day you join theBank.

You may report for duty, after getting release from your present employer and submit

copy of release letter issued by them. Please note that his offer will stand with drawn if

you do not report for duty within Thirty days from the date hereof.

Yours faithfully

Authorized Signature Authorized Signature



Annexure ‘R’ HO/HRD/APP-____________/2010 Human Resource DivisionDated: _________________

______________________

Dear Sir / Madam,

With reference to your application and subsequent interview, we are pleased to inform you that you have been

selected for service in our Bank as a JO/OG-III/OG-II-SEVP on the following terms and conditions:-

a) Your appointment in the service of our Bank is on Confirmed Status/subject to satisfactory completion of

probationary period of six months. The Bank may terminate your services at any time by giving you 30 daysnotice in writing or pay in lieu thereof.

b). From commencement of your employment, you will be paid the following remuneration i.e., Total

Rs.______________/-(Rupees:_________________________only) per month.

Details of Basic Salary, Allowance & Benefitsc). In determining your aforesaid emoluments the Bank has taken into consideration numerous factors such as

hardship, discomfort, education, health, incentive, location and conveyance and accordingly you shall not been titled to

a separate allowance in respect of these or similar factors.

d). Your employment will be governed by the HR Rules & Policy Guide lines of the Bank and Statement of Ethics &

Business Practices, as they exist and they may be revised from time to time. A copy of HR Rules & Policy Guide lines

and the Statement of Ethics & Business Practices are enclosed here with for your information and compliance.

e).From the date of Joining/confirmation, you shall be eligible to become member of the Staff Provident Fund Trust

and Staff Gratuity Fund Trust.

f). You shall initially be posted to “___________Office” of our Bank, but your services are transferable to any of the

branches/affiliates ,of the Bank, in Pakistan or a broad and you will be required to work during such duty hours

as maybe normally fixed by the Bank.

g). An employee shall not resign from the service of the Bank without giving three months prior notice, in writing, of

his/her intention to do so, failing which he/she shall be liable to pay to the Bank a sum equal to his/her

substantiative pay for three months.

h). You hereby undertake that you will not at anytime, whether during or after the termination of your service,

disclose, divulge, make public or make any use, whatever and whether for your own or any other purpose of anyinformation, knowledge or other whatsoever confided in or become known to or obtained by you as to the

business or affairs or otherwise whatsoever of the Bank or any of its customers or Officers or other employees.

i). You shall provide the Bank, in writing, reference from two respectable persons/parties.

j). You will also provide the Bank, certificates and degrees of educational qualifications as well as previous

employment certificates. Incase it is discovered at anytime that you will fully suppressed any material

information about yourself viz, educational qualifications, age, etc., or if it is discovered that disclosures made by

you at the time of appointment or thereafter are false in any respect, you will be liable to dismissal from the

Bank's service without any compensation thereof. In that event, the Bank will also be in its right to demand

damages.

k). You will furnish Personal Guarantee of Rs 75,000/- (Rupees Seventy Five Thousand only) from a guarantor

approved by the Bank. **

l) You hereby undertake to serve the Bank for a minimum period of three years from the date of joining /confirmation. If for any reason, you decide to leave the service of the Bank earlier, you shall refund to the Bank all

expenses incurred on your training & development / salary etc., which amount is hereby agreed at Rs._____________/-

**

m). You may report for duty after getting release from your ex-employer and submit copy of the release / clearance

letter issued by them. Please note that this offer will stand with drawn if you do not report for duty within 30 days

from the date hereof.

Please sign if your agreement to the above by signing and returning to us the duplicate hereof.

For HABIB METROPOLITAN BANK LIMITED

Authorized Signature Authorized Signature

**If Applicable



Annexure ‘S’ CheckList for Appointment Formalities

Sr.

#

Description Responsibility Please

[Ifsubmitted]

01. CopyofReleaseLetter fromallPreviousEmployer/s** Candidate

02. Copyof CNIC Candidate

03. CopiesofCertificate(s)ofEducational Qualification** Candidate

04. Duly acceptedcopyof offer/appointment letter Candidate

05. InterviewAssessment Form&Approval HRD

06. ServiceAgreement or Contract** HRD

07. Copyof JoiningReport dulysigned HRD

08. ServiceRegulationsdulysigned HRD

09. TwoReferences inWriting Candidate

10. SuretyForm** Candidate

11. Photograph/ BioDataForm Candidate

12. HealthInsuranceForm Candidate

13. GroupLifeInsuranceNominationForm Candidate

14. Statement of Ethics&BusinessPractices Candidate

15. PF/ GratuityForms[uponConfirmation] Candidate

16. Bank IdCardRequestFormwithPhotograph Candidate/EstablishmentDiv.

17. Email Idrequest Form Candidate/ITDivision

18. hPLUSuser Idrequest form Candidate/OperationsDiv.

19. Account OpeningForm Candidate/Br./CPUA/c.Opening/

20. Loans takenover fromprevious employer** HRD/Branch/CAD

21. Others

22.

23.

24.

25.

**Ifapplicable



Annexure ‘T’ Schedule of Increment/Promotion Exercise–

Sr.# Description TargetDate Responsibility Remarks

1 Revision of Fixed Allowances and Salary structure HRD

2 Dispatch of Increment /Promotion Circular andperformance evaluation sheets

HRD

3 Submission of Increment Sheets to HRD ZonalOffices/Divisions4 Meeting with Area Head/Zonal Head/Divisional Head for HRDpresentationtoAreaHead/

ZonalHead/DivisionalHeada- Allocation of budget inclusive of 10% special cases,

promotions up to Manager grade/salary adjustments etc.[% not to exceed from last year i.e.2008.] Excess impact tobe referred to CE.

b- To emphasize strict implementation of distribution formula A/ B/ C/ D on the basis of 10/ 40 / 35/ 10% of total strengthof officers in order to avoid forced ranking at HRD.

c- Formation of promotion committee for interviewing allgrades of Officers upto“Manager” designation.

[CommitteemembersHeadofHRD/Zonal/DivisionalHead/1Sr.

Executive]d- Preliminary discussion for selective elevations of Branch

Manager / AreaHead & Chief Manager grade and above,objective assessment justification to be prepared for presentation / discussion of Head of HRD and concernedZonal Head / Divisional Head with CE & ED in due course.

5 Draft Increment formula for applying thescoring model torespective ranks and promotions.

HRD

6 Upon receipts of Increment Ranking Sheets / Performance Appraisals Form from Zones / Divisions HRD will scrutinizethe same and conduct the necessary drill and input for calculation of preliminary impact of salary rise viz-e- vizTarget for the network to be communicated by Chief Executive/ Executive Director.

HRD

7 Meeting to be held with Zonal / Divisional Heads for finalizing 10% special cases and promotions cases up toManager

Zonal/DivisionalHead

8 List with concise recommendations of ZonalHead/Divisional Head for promotion above Manager gradeto be obtained for discussion with CE/ED

Zonal/DivisionalHeadcompilationbyHRD

9 Wrapping up sessions ofEVP HRD / Zonal Head/ DivisionHead with Chief Executive/Executive Director for allrelevant Increment / Promotion matters

HRD

10 Finalization of Increment / Promotion for Senior Management11 Submission of Final Increment impact calculationsheet for

Approval of the CEHRD

12 Submission of promotion list of entire network and branchwise Increment sheet for authentication of CE/ED HRD

13 Announcement of Increment / Promotion HRD14 Revised Salary HRD15 Disbursement of Arrears HRD



Annexure ‘U’ CheckList for SeparationFormalities

Sr.

#

Description Responsibility Please

[If submitted]

01. ResignationLetter Sent toHRD Employee/Branch

02. Handingover of Charge Branch/Dept.

03. Adjustment of All Liabilities** Branch/HRD

04. Recoveryof 3YearsServiceBond** Branch/HRD

05. Recoveryof 3monthsnoticePay** Branch/HRD

06. Cancellationof Power of Attorney** Br./HRD/Int.Div

07. Final Settlement Letter Employee/Branch

08. Returnof Keys[Branch/ Vault / others]** Branch/Dept.

09. Provident FundLetter** Employee/Branch

10. GratuityLetter** Employee/Branch

11. Informal Exit Interview Br./DH/ZH/HRD

12. EmployeeIDCard Employee/Branch

13. Blockingof Internet / Email IDsfacility Branch/IT

14. Blockingof hPLUSuser Id Br./IT/Operations

15. Changeof Statusof all accounts fromSalarytoCustomer Branch/CPUAccountOpening

16. UnrecordedLeave Branch

17. Release ofdocumentsofany financing facilityavailed** CAD

18. Laptop** IT/Operations

19. BankVehicle** Establishment Div.

20. Furniture&Fixture** HRD/FinanceDiv.

21. Swift Access** Branch/Int. Div.

22. OfficialSIMCard /Communication Instrument** Branch/IT/HRD

23. Shell Fuel Card** Branch/HRD

24. Medical Card Branch/HRD

25. Debit Leaverecovery** Branch/HRD

26. ReleaseLetter/ServiceCertificate Branch/HRD

27. Others

28.

29.

**If applicable



Annexure ‘V’ TrainingNeedsAnalysis

(For eachindividual)

Name_________________________________________Grade/Title________________________________________

Qualification_______________________________________DOB_______________________DOJ_______________

Branch/Dept.________________________BriefJobDescription____________________________________________

______________________________________________________________________________________________

Identifyareaswheretrainingwouldhelpthisindividual.

1. General Banking(comprehensive3dayscourse)

2 HABIBMETROProducts

3. AccountOpeningProcedures&Precautions

4. NegotiableInstrumentsAct:Crossings&Endorsements

5. KYC, DueDiligenceandAnti MoneyLaundering

6. Preventionof Frauds&Forgeries

7. Clearing/ Collection 8. Remittances

9. TermDeposits 10. Debit/ATMCards

11. Keys/ Vaults, Lockers&SecurityStationery

12. UtilityBillsCollection/ CashHandling,TC, PrizeBonds

13. BeinganEffectiveOperationsManager 14. Local &ForeignRemittance

15. Advances(comprehensive3dayscourse)

16. Principlesof PrudentLending

17. Prudential Regulations 18. Types of BorrowersandTypesof Credit Facilities

19. Export Refinance 20. Procedurefor processingof customercredit applications

21. Documentationfor CreditFacilities 22. Advancesagainstvarioustypesof Securities

23. hPLUSoptions–AdvancesDepartment 24. e-CIBanddetailsof e-CIBReports

25. Re-scheduling/ Re-structuringof Loans 26. Recoveryof StuckupLoans

27. LendingoperationsandRiskManagement

28. Analysisandinterpretationof FinancialStatements forLendingDecisions

29. CashFlowstatementandCashFlowBasedLending

30. MonitoringHypothecatedpledged&MortgagedAssets

31. Problemloans: EarlyWarningSignals 32. Mitigationof BankRiskThroughCredit Administration

33. Legal Aspectsof CreditAdministration 34. Internal RiskRatingSystem: AnEffectivetool for CreditRiskManagement

Contd on Page 2



-:Page2:-

35. OperationalRiskManagement 36. InternalControls inBanks–Risk&Management

37. Finance for DecisionMakers 38. TradeFinance (comprehensive3dayscourse)

39. Incoterms 40. AnOverviewof TradeFinance

41. Import letter of Credit 42. Import Billsunder letter of Credit &ImportCollection

43. Advance against Imports 44. Shipping Guarantee andLetter of Guarantee

45. FIMandFTR 46. Advisingletter of Credit andExportBill underletter ofcredit

47. ExportCollection&AdvanceagainstExport

48. UCP600

49. UnderstandingInternational TradeOperations

50. Swift: Customer Transfer, Correctionof LCs

51. IntroductiontoIslamicBankingandModesofFinance

52. TradeFinanceinIslamicBanking

53. RiskManagementfor IslamicBanks 54. AuditReportWriting

55. AuditingInternational Trade&Treasury 56. WebApplicationSecurity

57. SUSEUsage 58. ManagingTreasuryBusinessin

Banks59. RegulatoryFrameworkforHRM 60. Effectivewritingandspeakingskills

61. TelephoneCourtesy&Manners 62. CustomerServiceExcellence

63. BusinessEtiquetteforTellers 64. ImprovingyourPresentationSkills

65. ProblemSolving&DecisionMaking 66. Personal Effectiveness

67. Emotional Intelligence 68. BuildingWinningTeams

69. Break throughthinking *70 Other Courses

*Pleasementionthetitleofcoursesnotlistedabovewheretrainingis tobearranged.

AuthorizedSignature



Annexure ‘W’

TRAININGPROGRAMFORJOBINTERNEES

Sr.#

Department /Official

Areastobecovered Suggested#of daysfor

training

Duration Supervisor SignatureFrom To

01. BranchManager Introductionof theBank &Productsreview 01–Day

02. CD Token issuance, Clearing / Transfer

Delivery

05–Days

03. CD AccountOpening, Precautions, Introduction,

ChequeBookIssuance

05–Days

04. CD Prize Bonds Sale/Encashment of

GovernmentSecurities

02–Days

05. Remittances[Rs.] PayOrders,Drafts,TTs&EFT 08–Days

06. Bills Bills for collectionandpurchase 03–Days

07. Accounts Vouchers, Statement of Affairs, Trail

Balance,Profit &Lossstatement and

ReconciliationofSBPclearingAccounts

10–Days

08. Lockers SafeDeposit Lockers 01–Day09. ITsystem Overviewof hPLUSSystem 01–Day

a. hPLUSloginscreen

b. Successful login

c. Unsuccessful login

d. KeyboardusageinhPLUS

e. UnderstandingAccount Number inputbox

f. HotKeys

g. Entry level password

h. Passwordconcept andsecrecy

i. hPLUSmenuoption

ClassRoomtrainingSessions

10. Precautions inAccount Opening 01–Day

11. NegotiableInstrumentsAct: Crossing& Endorsement 01–Day

12. KnowYour Customer &DueDiligence 01–Day



Annexure ‘X’

Management Trainees Training Schedule

Orientation 04Days

Classroom Training (GB, Advances &Trade) 21Days

Credit 30Days

CAD 30Days

CPU A/c Opening & Imports 45Days

Regulatory 02Days

Operations 03Days

International & Treasury 30Days

Period in Departments 165DaysPeriod in Branches 195Days

Total Period 360Days

Branches Training

Token Issuance / Teller–Cash receipt, payment, utility bill receipts, Sorting, ATM, 36 DaysPreparation of statements, Vaults handling, Clearing &collection, Transfer Deliveryetc.

Remittances Pay Orders, Drafts, TTs, EFT, Foreign Remittance, 32 Days(All currencies) procedure for issuance of FX under form“M”and

TravelquotaunderT-1&T-2.

CD Prize Bonds Sale/Encashment of Government 15 DaysSecurities–preparation & submission of reports,under lien and reporting to SBP.

Bills Bills for collection and purchase 03Days

Lockers Safe Deposit Lockers-Cards to be filled, maintenance 01 Day

of register, locker operation.

Account Opening Opening all types of accounts. Application of KYC & 30Dayscustomer due diligence.

Imports & Exports 30Days

Credit All types of financing including export refinance, FIM 30DaysFTR, PAD etc.

Accounts Vouchers, Statement of Affairs, Trial Balance, 18Days

Profit and Loss statement and Reconciliationof SBP clearing Accounts



Annexure ‘Y (A)’

The Code provides a guideline for behavior of all employees, including management and the owners of anorganization to ensure a work environment free of sexual harassment and intimidation;

DEFINITIONS

(1) Specific terms used in this Code have been defined here:(a) “accused” means an employee or employer of an organization against whom complaint has been

made under this Code;(b) “Act” refers to the“ProtectionAgainst Harassment of Women at Workplace Act 2010”(c) CBA means Collective Bargaining Agency as provided in the Industrial Relations Act 2008, or any

other law for the time being in force.(d) “Code” means the Code of Conduct prescribed in this document;(e) “Competent Authority” the authority as may be designated by the management for the purposes of

this Code;(f) “Complainant” means a woman or a man who has made a complaint to the Inquiry Committee on

being aggrieved by an act of harassment;(g) “Employee” means a regular or contractual employee whether employed on daily, weekly, monthly

or hourly basis, and includes an intern or an apprentice;(h) “Employer” in relation to an organization, means any person or body of persons whether

incorporated or not, who or which employs workers in an organization under a contract of employment or in any other manner whosoever and includes–

i) Anheir, successor or assignee, as the case may be, of such person or, body as aforesaid;ii) Any person responsible for the direction, administration, management and control of the

management;iii) The authority, in relation of an organization or a group of organization run by or under the

authority of any Ministry or department of the Federal Government or a Provincialgovernment, appointed in this behalf or, where no authority is appointed, the head of theMinistry or department as the case may be;

iv) The office bearer, in relation to an organization run by or on behalf of the local authority,appointed in this behalf, or where no officer is so appointed, the chief executive officer bearer of that authority;

v) Theproprietor, in relation to any other organization, of such organization and every director,manager, secretary, agent or office bearer or person concerned with the management of

the affairs thereof.vi) A contractor or an organization of a contractor who or which undertakes to procure thelabour or services of employees for use by another person or in another organization for any purpose whatsoever and for payment in any form and on any basis whatsoever; and

vii) Office bearers of a department of a Division of a Federal or a Provincial or local authoritywho belong to the managerial, secretarial or directional cadre or categories of supervisorsor agents and those who have been notified for this purpose in the official Gazette;

(i) “Sexual harassment” means any unwelcome sexual advance, request for sexual favors or other verbal or written communication or physical conduct of a sexual nature or sexually demeaningattitudes, causing interference with work performance or creating an intimidating, hostile or offensivework environment, or the attempt to punish the complainant for refusal to comply to such a request

or is made a condition for employment;(j) “Inquiry Committee” means the Inquiry Committee established under

this Code and under the “Protection Against Harassment of Women at Workplace Act 2010”



(k) “Management” means a person or body of persons responsible for the management of the affairs of an organization and includes an employer;

(l) “Ombudsperson” means the Ombudsperson appointed under section 7 of the Act;

(m) “Organization” means a Federal or Provincial Government Ministry, Division or department, acorporation or any autonomous or semi-autonomous body, Educational Institutions, Medical facilities

established or controlled by the Federal or Provincial Governments or District Governments or registered civil society associations or privately managed a commercial or an industrialestablishment or institution, a company as defined in the Companies Ordinance, 1984 and includesany other registered private sector organization or institution;

(n) “Workplace” means the place of work or the premises where an organization or employer operatesand includes building, factory, open area or a larger geographical area where the activities of theorganization or of employer are carried out and including any situation that is linked to official workor official activity outside the office.

THE UNACCEPTABLE BEHAVIOUR

(2) Sexual Harassment, the behavior described in Clause 1 (i), i.e.any unwelcome sexual advance, request for sexual favors or other verbal or written communication or physical conduct of a sexual nature or sexually demeaning attitudes, causing interference with work performance or creating an intimidating, hostile or offensive work environment, or the attempt to punish the complainant for refusal to comply

to such a request or is made a condition for employment,

is unacceptable behavior in the workplace, including any interaction or situation that is linked to official work or official activity outside the office. It constitutes a violation of this Code. For further explanation of such behavior see Annex I

(3) The management of organizations mentioned in clause 1 (m) is required to incorporate this Code of Conduct as

part of their workplace policy.

RESPONSIBILITIES OF THE MANAGEMENT

(4) Management will be responsible to follow this Code in letter and spirit to ensure that each complaint of sexualharassment is addressed responsibly. The management will be impartial in the process and will facilitate a just andfair inquiry without retaliation. The management will not victimize the complainant or the witnesses in the case.

Establishing an Inquiry Committee(5) The organization shall constitute a standing Inquiry Committee to look into complaints under this Code. TheCommittee shall consist of three members, of whom at least one member shall be a woman. One member shall befrom senior management and one shall be a senior representative of the employees or a senior employee where

there is no CBA. One or more members can be co-opted from outside the organization if the organization is unableto designate three members from within as described above. A Chairperson of the Committee shall be designatedfrom amongst them.

(6) In case a complaint is made against one of the members of the Inquiry Committee that member shall bereplaced by another for that particular case. Such a member may be from within or outside the organization;

Designating Competent Authority(7) The management should designate a Competent Authority for implementation of this Code, and as prescribed inthe Act.

Awareness Raising and Education of the Employees regarding this Issue

(8) The management shall display copies of the Code in English as well as in languages understood by the majorityof employees at conspicuous places in the organization and the work place within one month of the commencementof the Act.



(9) The management will conduct awareness sessions about the Code and the consequences of such harassment atworkplace for its employees.

Managements Obligationtowardsthe Ombudsperson(10) The Government shall establish an Office of Ombudsperson for the purpose of addressing sexual harassmentcases. The Ombudsperson may be requested by an employee to hear cases where an employee feels a fair hearingcannot be obtained within the organization. The management shall respond to any and all queries of theOmbudsperson. In case an employee files a complaint directly with the Ombudsperson or if an employee, after beingdissatisfied with the decision of the Inquiry Committee, files an appeal with the Ombudsperson, the managementshall abide by the decision made by the Ombudsperson.

PUNISHMENT FOR NON-COMPLIANCE

(11) On failure of an employer to comply with the provisions of this Code, any employee of an organization may file apetition before a District Court and on having been found guilty, the employer shall be liable to a fine which mayextend to one hundred thousand rupees, but shall not be less than twenty-five thousand rupees.

(12) In case the management fails to follow instructions from the Ombudsperson for information related to the inquiry

process of fails to abide by the decision made by him/her the management will be punished with the samepunishment as for contempt of high court.

INFORMAL PROCEDURE OF COMPLAINT

(13) An informal approach to resolve a complaint of harassment may be through mediation between the partiesinvolved and by providing advice and counseling on a strictly confidential basis;

i) A complainant or a staff member designated by the complainant for the purpose may report anincident of harassment informally to his/her supervisor, or a member of the Inquiry Committee, inwhich case the supervisor or the Committee member may address the issue at her discretion in thespirit of this Code. The request may be made orally or in writing;

ii) If the case is taken up for investigation at an informal level, a senior manager from the office or thehead office will conduct the investigation in a confidential manner. The alleged accused will beapproached with the intentionof resolving the matter in a confidential manner;

iii) If the incident or the case reported does constitute sexual harassment of a higher degree and theofficer or a member reviewing the case feels that it needs to be pursued formally for a disciplinaryaction, with the consent of the complainant, the case can be taken as a formal complaint;

iv) A complainant does not necessarily have to take a complaint of harassment through the informalchannel. S/he can launch a formal complaint at any time;

v) The complainant may make formal complaint through her supervisor, CBA nominee or worker’srepresentative, as the case may be, or directly to any member of the Inquiry Committee. TheCommittee member approached is obligated to initiate the process of investigation. The supervisor shall facilitate the process and is obligated not to cover up or obstruct the inquiry;

vi) Assistance in the inquiry procedure can be sought from any member of the organization who shouldbe contacted to assist in such a case;

vii) The employer shall do its best to temporarily make adjustments so that the accused and thecomplainant do not have to interact for official purposes during the investigation period. This wouldinclude temporarily changing the office, in case both sit in one office, or taking away any extracharge over and above their contract which may give one party excessive powers over the other’s

job conditions. The employer can also decide to send the accused on leave, or suspend theaccused in accordance with the applicable procedures for dealing with the cases of misconduct, if required;



viii) Retaliation from either party should be strictly monitored. During the process of the investigationwork, evaluation, daily duties, reporting structure and any parallel inquiries initiated should be strictlymonitored to avoid any retaliation from either side;

ix) The harassment usually occurs between colleagues when they are alone; therefore usually it isdifficult to produce evidence. It is strongly recommended that staff should report an offensivebehavior immediately to someone they trust, even if they do not wish to make a formal complaint at

the time. Although not reporting immediately shall not affect the merits of the case;

FORMAL INQUIRY PROCEDUREWorking of the Inquiry Committee

(14) The Inquiry Committee set up under clause (5) will determine a chairperson among themselves and will fix thetime and place for its meetings.

(15) The Inquiry Committee after the receipt of a written complaint, shall–(a) within three days communicate in writing the charges and statement of allegations to the accused;(b) require the accused, within seven days from the day the charge is communicated to him, to submit a

written defense and on his failure to do so without reasonable cause, the Committee shall proceed

ex-parte;(c) enquire into the charge and may examine such oral or documentary evidence in support of the

charge or in defense of the accused as the Committee may consider necessary and each party shallbe entitled to cross-examine the witnesses against him/her.

(16)The Inquiry Committee shall have the power to:(a) summon and enforce attendance of any person and examine him on oath;(b) require the discovery and production of any document;(c) receive evidence on affidavits; and(d) record evidence.(e) get the complaint or the accused medically examined by authorized

doctor, if necessary,

(17) The Inquiry Committee shall have the power to inquire into the matters of harassment under this Code, andmay recommend appropriate penalty against the accused. The following provisions inter aliashall be followed by theCommittee in relation to the inquiry (more elaborate guidelines are provided in Annex II):

(a) The statements and other evidence acquired in the inquiry process shall be considered asconfidential;

(b) The Inquiry Committee can instruct to treat the whole proceedings confidentially, if necessary.

(b) An officer in an organization, if considered necessary, may be nominated to provide adviceand assistance to both parties;

(c) Both parties, the complainant and the accused, shall have the right to be represented or accompanied by a Collective Bargaining Agency representative, a friend or a colleague;

(d) Adverse action shall not be taken against the complainant or the witnesses;(e) The Inquiry Committee shall ensure that neither the employer nor the accused shall initiate

any action that would create a hostile environment for the complainant so as to pressurizehim/her from freely pursuing his/her complaint; and

(f) The Inquiry Committee shall give its findings in writing by recording reasons thereof.

Findings, Recommendations and Penalties(18) The Inquiry Committee shall submit its findings and recommendations to the Competent Authority within thirtydays of the initiation of inquiry. If the Inquiry Committee finds the accused to be guilty it shall recommend to theCompetent Authority for imposing one or more of the following penalties:

(i) Minor penalties:(a) censure;(b) withholding, for a specific period, promotion or increment;



(c) hold, for a specific period, at an efficiency bar in thetime-scale;

(d) recovery of the compensation payable to the complainant from pay or any other source of the accused;

(ii) Major penalties:(a) reduction to a lower post or time-scale, or to a lower stage in a time-scale;(b) compulsory retirement;(c) removal from service; and(d) dismissal from service.(e) Payment of a Fine. A part of the fine can be used as compensation for the complainant. In

case of the owner, the fine shall be payable to the complainant.

Implementation of the Decision(19) The Competent Authority shall impose the penalty recommended by the Inquiry Committee under clause (18)within one week of the receipt of the recommendations.

(20) The Inquiry Committee shall meet on a regular basis and monitor the situation regularly until they are satisfiedthat their recommendations subject to decision, if any of Competent Authority and Appellate Authority, if applicable,

have been implemented.(21) In case the complainant is in trauma the organization will arrange for psycho-social counseling or medical

treatment and for additional medical leave.

(22) The organization may also offer compensation to the complainant in case of loss of salary or other damages.

Appeal(23) Any party on whom minor or major penalty is imposed and is dissatisfied by the decision of the Competent Authority may within thirty days of written communication of the decision file an appeal to the Ombudspersonestablished for this purpose by the respective Governments at the Federal and Provincial levels.

(24) The Appellate Authority may, on consideration of the appeal and any other relevant material, confirm, set aside,

vary or modify the decision within thirty days in respect of which such appeal is made. It shall communicate thedecision to both the parties and the employer.

(25) Until such time that the Ombudsperson is appointed, the District Court shall have the jurisdiction to hear appealsagainst the decisions of Competent Authority.

Mala Fide accusation(26) The Inquiry Committee may recommend to Ombudsperson for appropriate action against the complainant if allegations leveled against the accused are found to be false and made withmalafide intentions.

COMPLAINTS TO OMBUDSPERSON

(27) Any employee shall have the option to file a complaint either to the Inquiry Committee or the Ombudsperson. Incase of filing a complaint with the Ombudsperson the management will respond to any inquiries that theOmbudsperson might have regarding information related to the case (as per clause 10). It will be mandatory for themanagement to abide by the decision of the Ombudsperson. For details on the powers and procedures that will befollowed by the Ombudsperson see Annex III

ANNEX I

DETAILED DEFINITION OF SEXUAL HARASSMENT(referred to in clause 2 of the Code)

(1) Sexual harassment can include but is not limited to: verbal harassment or abuse, subtle pressure for sexual acts,sexual advances in the pretext of narrating sexual incidents, touching, patting or pinching, leering at a persons body,



demanding sexual favors accompanied by subtle or overt threats concerning employment or advancement; andphysical assault including rape.

There are three significant manifestations of sexual harassment in the work environment:

(a) Abuse of authority

A demand by a person in authority, such as a supervisor, for sexual favors in order for the complainant to keep or obtain certain job benefits, be it a wage increase, a promotion, training opportunity, a transfer or the job itself.

(b) Creating a hostile environment

Any unwelcome sexual advance, request for sexual favors or other verbal or physical conduct of a sexual nature,which interferes with an individuals work performance or creates an intimidating, hostile, abusive or offensive workenvironment.

The typical “hostile environment” claim, in general, requires finding of a pattern of offensive conduct, however, incases where the harassment is particularly severe, such as in cases involving physical contact, a single offensive

incident will constitute a violation.(c) Retaliation

The refusal to grant a sexual favor can result in retaliation, which may include limiting the employees options for future promotions or training, distorting the evaluation reports, generating gossip against the employee or other waysof limiting access to his/her rights. Such behavior is also a part of the harassment.

(2) Passing on pornographic material in print or electronic form, or passing on written offensive messages of a sexualnature would also be considered sexual harassment.

(3) Any expression that suggests superiority of one gender over the other should be avoided. Such expressions mayinclude jokes that demean one gender, and unwelcome references to a persons appearance or body, where theycause psychological harassment and serve to deny colleagues their dignity and respect and contribute to anatmosphere in which inequality is emphasized. Such expressions, if persistent, may constitute sexual harassment.

ANNEX II(referred to in clause 17 of the Code)HELPFUL GUIDELINES FOR THE INQUIRY PROCESS

1) The Inquiry Committee members should make the environment of the inquiry process conducive andunintimidating. The members should not reflect any bias in their attitude or their questioning. It is acknowledged thatthe society mostly blames women for whatever happens to her and usually makes an assumption that sexualharassment happens to women who are immoral or have encouraged an innocent man to provoke this behavior. The

Committee members need to be careful not to exhibit such biases and should remain neutral.

2) Abuse of authority cases are complex because of power imbalance between complainant and accused, andmay require severe disciplinary actions. Such cases could be linked with hiring and firing of employee, promotion,work duties, relocation, leave, training and other aspects affecting employment. In such cases the Committeemembers need to be aware that a reaction from the victim is not easy at the time when the offensive behavior takesplace because of fear or power of a senior person over a junior employee. Therefore, strict measures of why thevictim let it happen or why s/he didnt scream etc. might not be relevant.

3) Cases which create a hostile work environment could range from patterns of offensive behavior over a period of time or single severe incidents of harassment.

4) Annex I describes types of harassment but these are not always distinct from each other and can occur simultaneously. Additionally, sexual harassment can happen to men and women at all levels of job hierarchy andbetween all relationships of equal and unequal power.



5) The harassment can occur outside working hours and workplace. It is the access that a perpetrator has to theperson being harassed by virtue of a job situation or relation that is relevant here.

6) To constitute sexual harassment, the conduct must be unwelcome. Exploration of a case must consider whether the person indicated to the other that the advances were unwelcomed or not. It is possible that initially the victimmight have considered the behaviour permissible, but later, due to personal reasons, personal choices or due toescalating advances, may want the person to stop that behaviour. In such situations, it is helpful to keep in mind that

the initial permission should not betaken as a license for life. Or a welcomed response for a friendly advance shouldnot be taken as an assumed door opener for physical links. Whenever a person feels that her/his personal limits arebeing crossed and chooses not to go any further, s/he has to right to convey this to the other person, and if thatperson does not stop that behaviour, it should be considered sexual harassment.

7) Supervisory employees and co-workers should be asked about their knowledge of alleged harassment. Whenwitnesses are not identified, testimony may be obtained from persons who observed change in demeanor of thecharging party after alleged incident. Other persons who the charging party discussed the incident with should beinterviewed.

8) It is acknowledged that sexual harassment usually occurs between colleagues when they are alone; therefore

usually it is difficult to produce evidence. It is strongly recommended that staff should report an offensive behavior immediately to someone they trust, even if they do not wish to launch a formal complaint at the time; Although notreporting immediately should not affect the merits of the case.

a) Detailed account of the complainant and the accused form a part of the evidence.b) Witness statementsc) Statements of persons with whom the complainant might have discussed the incident, statements of persons from whom advice may have informally been sought, should be considered as evidence.d) Any other documentary, audio or video records can be submitted. Expert technical advice can be soughtfor such submissions.

(9) The complainant should inform the accused about conduct constituting sexual harassment. It is advisable that

records should be maintained in writing, all incidents noting dates, places, descriptions of acts, notifications to theaccused and names of those to whom the incident may have been mentioned.

(10) In some cases, sexual harassment determination can be based solely on the credibility of complainantsallegation, if the account is sufficiently detailedand internally consistent.

(11) Lack of corroborative evidence where such evidence should exist could undermine the allegations. By thesame token, a general denial by the accused will carry little weight when contradicted by other evidence.

(12) When dealing with harassment through a series of incidents, the investigator should not consider the series of incidents as separate specific incidents, but should consider the pattern. The cumulative impact of such incidents onthe victim can make the work environment hostile.

(13) Any person who aids or abets and covers the commission of any such act perpetrated by another, withoutwhich it could not have been committed might also be considered liable under this Code.

(14) While probing the matter of sexual harassment, if the investigation results in the involvement of any closerelative or any associated person to the owner or management in committing that act of sexual harassment, theCommittee could recommend commencing legal proceedings against them at the cost of the management.

(15) If other matters surface during the inquiry, they may be reported in an inquiry report if relevant; otherwise theseshould be reported to separate authorities.

(16) In case the complainant is in trauma, the organization will arrange for counseling and for additional medical

leave. This may be suggested as a part of the decision.



(17) The organization can also offer compensation to the complainant in the case of loss of salary or other damagesresulting from the harassment. The complainant can also be offered compensation if the employer has failed in theduty to prevent the sexual harassment of the complainant.

ANNEX III

OFFICE OF THE OMBUDSPERSON

(Referred to in para 27 of the Code)

It is acknowledged that not every organization might have a sturdy mechanism as prescribed for addressing sexualharassment. At times, the perpetrator is too senior or is the owner of the organization. In such a case, it might not bepossible for the Inquiry Committee to hold the person accountable. Similarly, if the Committee is not made of crediblepeople and an employee does not develop trust for them, there is a provision in the Law for directly approaching theOffice of the Ombudsperson.

The Office of the Ombudsperson will be set up at the Federal level and later at the Provincial level to deal with thecomplaints of sexual harassment. This office will be headed by a person with the same qualifications as that of aJudge of a High Court.

Functions of the OmbudspersonThis office will deal with:

• Appeals from the persons who are aggrieved by the decision of the Inquiry Committee.• Complaints made directly for cases of sexual harassment at the workplace of formal organizations.• Complaints from the management of an organization, in case it believed that a complainant has made a

mala fide attempt to intentionally defame someone.Powers of the Ombudsperson

The Ombudsperson shall for the purpose of the “Protection Against Harassment of Women at Workplace Act2010”, have the same powers as are vested in a Civil Court under the Code of Civil Procedures, 1908 (Act V of 1908), in respect of the following matters, namely:

i. Summoning and enforcing the attendance of any person and examining him on oath;ii. Compelling the production of evidence;iii. Receiving evidence on affidavits; andiv. Issuing commission for the examination of witnessesv. Entering any premises for the purpose of making any inspection or investigation, enter any premises

where the Ombudsperson has a reason to believe that any information relevant to the case may befound; and

vi. The Ombudsperson shall have the same powers as the High Court has to punish any person for itscontempt.

Inquiry Procedures for the Ombudsperson

i.The Ombudsperson shall within 3 days of receiving a complaint issuea written show cause notice to the accused. The Accused after thereceipt of the written notice shall submit a written defense to theOmbudsperson within five days and his failure to do so withoutreasonable cause would allow the Ombudsperson to proceed exparte. Both the parties can represent themselves before theOmbudsperson.

ii. The Ombudsperson shall conduct an inquiry into the matter according to the rules made under the Protection AgainstHarassment of Women at Workplace Act 2010, and conductproceedings as the Ombudsperson deems proper.

(3) For the purposes of an investigation under the Act, the Ombudsperson may require any office or member of an organization concerned to furnish anyinformation or to produce any document which in the opinion of the



Ombudsperson is relevant and helpful in the conduct of the investigation.

Decision of the Ombudsperson(1) When making the decision on the complaint, the Ombudsperson may impose any of the minor or major

penalties specified for the Inquiry Committee within the organization.

(2) The Ombudsperson shall record his/her decision and inform both parties and the management of the

concerned organization for implementation of the orders. The management of the organization is bound toabide by the decision of the Ombudsperson. It the decision is not implemented, the management shall becharged with the contempt of high court.

Provision for AppealWhen a case is taken directly to the Ombudsperson instead of an inquiry Committee and the complainant or theaccused is aggrievedby a decision of Ombudsperson, within thirty days of decision, could make a representation to

the President or Governor, as the case may be, who may pass such order thereon as s/he may deem fit.

ANNEX IV

FILING COMPLAINTS OF SEXUAL HARASSMENT THROUGH THE POLICE

The Protection against harassment of women at workplace Act 2010 was passed with the intention that self-regulatory mechanisms within organizations could provide women and men working in an organization with aculturally sensitive platform for raising any complaints of sexual harassment. Through the operation of an internalInquiry Committee within each organization, employees could comfortably communicate their grievance and find aresolution. This mechanism where a Code of Conduct within an organization and a three member Committeeprovides an effective mode for addressing and dealing with complaints of sexual harassment.

However, the employees should know that on 29th of January, 2010 the Government passed an amendment to thePakistan Penal Code, section 509, which makes sexual harassment at any place, including a workplace, a crime. It

is punishable by a fine up to Rupees 500,000 or imprisonment up to 3 years or both.If there is a case of sexual harassment of an employee, the management of the organization would prefer that thecomplaint is filed within the organization, but it is obligated to educate its employees that they do have an option togo to the police and file a police report against the perpetrator under section 509.



Annexure ‘Y (B)’ Staff NoticeBoard

To : All HABIBMETROStaff Members

Subject : Chapter X-Harassment ingeneral andTheProtection

Against Harassment ofwomenat theWorkplaceAct,2010

The management has adopted and incorporated the Code of Conduct -“Protection Against

Harassment of Women at theWorkplace Act, 2010” intheBanksHRRules&PolicyGuidelines.

The Bank is committed toprovide work environment that is safe, fair and free fromdiscrimination for allstaff members of the Bank. The Bank has the responsibility to ensure that, in the workplace, no

employee/individual or supervisor harasses in anyway another employee/individual on the basis of

gender, sexualorientation, race, colour, ethnicbackground, minority status, disabilityor personal likesand

dislikes.

Moreover, the purpose is to ensure that harassment [including sexual harassment]. In any form is not

tolerated.

For completedetailsandcodeof conduct, pleasevisit theBankswebportal throughthefollowinglink:

http://10.96.4.136:8080/HabibMetroFinal/keyPolicies.jsp

The text of the relative laws and code of conduct along with different article is also available at

http://www.aasha.org.pk/.



Annexure ‘Z’

Position Applied for:

Name: Employee No:

Current Grade / Designation: Date of Birth:

Date of joining Experience in current position:

Total working Experience: Total Banking Exposure:

Performance Rating:

LatestDate:

Performance Rating:

PreviousDate:

Qualification: Budgeted / Non budgeted:

Employee's Signature

CONCURRED BY:

Please Note:

PREVIOUS RELEVANT EXPERIENCE:

Zonal / Divisional Head

CAREER ASPIRATIONS (Next 3-5 years):

•

Whilst applying for any “Internal Job Broadcast”, all applicants MUST send in their applications duly signed by his/her Line Manager and Zonal / Divis ional Head

• Applicants should apply within the deadline and on the standard form.

•

The Line manager will not prohibit an employee from applying for a local position if the individual has been in the role for more than 36 months.

•

All applicants to spend a minimum of 2 years in their current position with a minimum rating of Good for the last 2 years. Exceptions can be made to a maximum of 18 months with

a rating of 2 or above for the last 2 years.

STRENGTHS (Please describe each of your strengths in no more than 20 words):

Line Manager

Habib Metropolitan Bank limited

Internal Job Broadcast - Application Form

JUSTIFICATION FOR INTEREST IN THE ANNOUNCED POSITION:

SUMMARY OF CURRENT ASSIGNMENT:



Annexure ‘AA’

S# Project / Assignment

Project Completion

Deadline Division & Unit

No. of Interns

required

Name

of Supervisor

Specific Competencies

desired for Project

1 HR Archiving & Filing 3 months HRD 4 ZM

Signature

________________________

Divisional Head

HMB Internship Program FY___

attention to detail,

understanding of criticality of

the documents & records

Requisition Form



Annexure ‘AB’

Name: Father’s / Husband’s Name:

Educational Institution:

Place of Interview:

Educational Qualification: Date of Interview:

Achievements (if any):Requisitioned by :

D.O.B:

Excellent V.Good Good AverageBelow

AverageRemarks

1. Technical Competency

2. Personality (appearance, grooming, confidence, extrovert / introvert)

3. Communication Skills (verbal, persuasiveness, coherent)

4. Positive Attitude (behavior, manners, maturity)

5. Initiative & Drive(enthusiasm & appreciation)

6. Adaptability (orgnaisati

7. Ambition & Motivation (clarity of future goals & direction)

8. Leadership / Supervisory Potential

9. ProblemSolving Skills and Analytical Reasoning

10. Intellectual Ability (possesses wholistic approach)

Recommended for hiring as Intern O Not Recommended for hiring O Suitable for other area O Specify ______

Interviewer’s Comments / Observations: (if any)

Signature & Date:

Overall Rating

Overall Assessment of the Candidate

Suitable for Assignment of Project at :

Type of Internship (mark the required type with √ ) : O Type - I O Type - II

Attributes

INTERVIEW ASSESMENT FORM - INTERN

Interviewed by:

Designation :

Please mark your rating ( √ ) on all factors below:



Annexure ‘AC’

Ms. RimshaSiddique144,29thStreetOff. Kh.e.MuhaffizPhase 6, DHAKarachi

Subject : Internship at Habib Metropolitan Bank Ltd.

Dear Ms. Siddique,

With reference to your resume for internship with HABIBMETRO, we are pleased to accept you under our Internship Program 2009 for

a period of 08 weeks.

Keeping in view your competence and interest, you are being placed in Risk Management Division.

For the details of your assignment, you may please report to Mr. Anwar Khan Zubairi – Head of Risk Management at Extension HeadOffice Building at Spencer Building, I. I. Chundrigar Road Karachi

You will be paid a stipend of PKR 5,000.00(Pak Rupees Five Thousand Only), per month, through Pay order after the completion of your internship.

You are provided with an internship Feedback Form (enclosed) that you need to submit to your immediate supervisor upon successfulcompletion of your 08 weeks tenure of internship. You also need to submit a brief internship report at the end of your internship period.

The submission of Feedback Form and Internship Report shall facilitate issuance of internship certificate to you.

You will not, at any time during the continuance of your engagement with the bank as intern or thereafter, use any information whichmay come to your knowledge in any manner which may be directly or indirectly detrimental to the interest of the bank.

Please return the second copy of this letter duly signed by you as a token of your acceptance of this offer.

Sincerely,

For Habib Metropolitan Bank Ltd.

_____________________________ ______________________ Head of Recruitment & Training Head of Human Resources

Distribution:

• Head of Risk Management• HR C & B & Internship File



Annexure ‘AD’ HABIB METROPOLITANBANK LIMITED

Intern Evaluation Form

Project Assigned / Areas of On-the-Job Training: ________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

Overall Performance(Technical & Behavioral Competencies shown during internship):

Attributes Excellent Good AverageUn

Satisfactory

Understands & ownsHABIBMETROs Vision & Values

Disciplined (is Punctual & has Professional Presence)

Communication Skills (has written & interpersonal skills)

Initiative to learn (has capacity & willingness to learn)

Focused efforts (is of goal oriented approach)

Analytical Ability (is able to think through)

Responsibility in carrying out tasks

Time Management

Remarks on Overall Performance Assessed: _____________________________________________________________________________________________

_____________________________________________________________________________________________

_____________________________________________________________________________________________

Branch / Line Manager (Signature)

_____________________________________________________________________________________________

_____________________________________________________________________________________________

_____________________________________________________________

Area / Unit Head (Signature)

__________________ ___________________

Zone / Divisional Head HRD

Date:_______________ Date:_______________

Name: Line/Branch Manager:

Fathers Name: Branch/ Division:

Educational Institution: Area/Divisional Head

Degree: Mentor:

Date of Joining: Date of Completion:



Annexure ‘AE’

Internship Feedback Form

Dear Intern,

We value your comments and would appreciate if you could spare some time in answering thefollowing questions.

Thanks & Regards,

Human Resources Division

Name:

_______________________________________

Degree:

_______________________________________

Institution:

_______________________________________

Internship from: ___________________to:__________________

Questionnaire

1. Name the divisionand the supervisors name you were assigned to?

Line Managers Name

Branch / Division Name

2. To what extent were you coached and guided by your supervisor?To a Great Extent Reasonable Extent No Help Extended

3. How supportive were the employees of HABIBMETROduring your internship?

Very Supportive Somewhat Supportive Not Supportive

4. Do you feel the knowledge gained during your internship will benefit you in future?

Yes May be No

5. How did you find the work environment?

Very Good Good Average Below Average



6. Any specific experience that supports your answer in question no. 5?

7. Give a brief description of the work assigned to you (Mandatory Requirement)

Date post:	19-Feb-2018
Category:	Documents
Upload:	haseebbaig
View:	215 times
Download:	0 times

HMB Rules Policy Guide Lines Apr 2015

Documents