INTRODUCTION AND HISTORY OF FAYSAL BANK:

Faysal Bank started operations in Pakistan in 1987, first as a branch set-up of Faysal Islamic Bank of Bahrain and then in 1995 as a locally incorporated Pakistani bank under the present name of Faysal Bank Limited. On January 1, 2002, Al Faysal Investment Bank Limited, another group entity in Pakistan, merged into Faysal Bank Limited which resulted in a larger, stronger and much more versatile institution. In fact it has the highest share capital amongst private banks in Pakistan and is amongst the largest in terms of equity. Faysal Bank Limited is a full service banking institution offering consumer, corporate and investment banking facilities to its customers. The Banks widespread and growing network of branches in the four provinces of the country and Azad Kashmir, together with its corporate offices in major cities, provides efficient services in an effective manner. The strength and stability of Faysal Bank Limited is evident through the Credit Rating assigned by JCR-VIS Credit Rating Company Limited of AA (Double A) for long to medium term and A-1+ (A One Plus) for short term. The majority share holding of Faysal Bank Limited is held by Ithmaar Bank B.S.C an investment bank listed in Bahrain.

Group Information: Ithmaar Bank B.S.C. is licensed by the Central Bank of Bahrain and listed on the Bahrain Stock Exchange (ITHMR). It has a paid-up capital of US$360 million, total equity of US$1.1 billion and is a full investment bank with its direct business covering the Middle East and North Africa (MENA) region, as well as South Asia, Asia-Pacific and Europe. Besides holding significant investments in the banking, financial services and real estate sectors in different markets, the main activities of the Bank include
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underwriting (equity and other financings), private equity (structuring, participation and portfolio management), Islamic financing, private banking, and advisory services covering project financing, investments, capital markets and mergers & acquisitions.

Capital and Ownership: Ithmaar Bank B.S.C, an investment Bank in Bahrain is the ultimate holding company of Faysal Bank. The remaining shareholders comprise of general public, NIT and other Pakistani institutions.

VISION STATEMENT:
To be the bank of first choice with the highest ethical principles as our guiding force.

MISSION STATEMENT:
To excel in providing innovative, value based banking solutions to meet changing needs of customers and to strengthen the image of trust and reliability.

OPENING DOORS TO LIMITLESS POSSIBILITIES:

We open door to limitless possibilities for our stakeholders by providing banking solutions that deliver results through meticulous planning, focus on specific objectives, setting priorities right, and putting in place strategies and processes that help yield better growth with higher return.

OUR VALUES:
INTEGRITY: We will hold fast to the highest standards of ethical conduct to meet our commitments to our customers, employees and shareholders. above all, we will hold true to our persona commitment and conviction to the truth. Our Integrity: Our Identity Corporate governance: Our goal is to respond a rapidly changing business environment in a timely manner to improve corporate citizenship and transparency by reinforcing our ethical standards and building a relationship of trust with customers and stakeholders. Corporate social responsibility: We believe that the highest standards of engagement must not be only with our stakeholders, employees or customers but also within the community in which we work and live. We abide by the laws of Pakistan in which we do business, we strive to be a good corporate citizen and take full responsibility of all our actions. Teamwork: As a team, we play to win from the smallest unit to the enterprise as a whole. We achieve far more as a team than as individuals. Our Team: Our Assets Respect: We appreciate our diversity and believe that respect for our employees, customers, stakeholders, and all those with whom we interact are an essential element of all positive and productive business relationships. We treat everyone as we wish to be treated with dignity and respect. Our Respect: Our Values
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BUSINESS STRUCTURE AND STRATEGY:

Board of Directors:

Syed Naseem Ahmad Naved A. Khan Graham Roderick Walker Mohamed A.R. Hussain Mohammad A. Rahman Bucheerei Farooq Rahmatullah Tariq Iqbal Khan Shahid Ahmad

Chairman President & Chief Executive Officer Director Director Director Director Director Director

Board of Directors:

Chairman

Secretary of the Board

Director

Director

Director

CEOB (Member)

Director (Govt. Nominated)

Director (Govt. Nominated)

PRODUCTS AND SERVICES:

We are a progressive bank striving to offer innovative products, easy accessibility, quality service & convenience to our customers. We offer customized financing
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solutions with flexible criteria and convenient loan tenures. You can avail car, home and personal loans through our various branches. We also offer a host of Corporate & Investment Banking Services to our clients, which include financial and corporate advisory services, along with a wide array of tools to help them achieve their goals. Deposit Accounts Faysal Savings Account Rozana Munafa Plus Account Basic Banking Account Faysal Moavin Faysal Premium Faysal Izafa Mahfooz Sarmaya FCY Saving Plus Corporate & Investment Banking Corporate Financing SME Finance Trade Financing Treasury & Capital Markets Investment Banking Cash Management Services PocketMate Visa Debit Card Travellers Cheques Transfer of Funds Safe Deposit Lockers Non-stop Banking Consumer Loans Car Finance House Finance Faysal Finance

CUSTOMER SERVICES DEPARTMENT:

Requirements for Account Opening and closing of Account: Terms and Conditions:
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Account opening requires things: National id card of the customer and introducer Introducer Visiting card or employment certificate.

Customer: Customer is the person who comes with the purpose of opening the account Introducer: Introducer is a person having the account in same branch and gives guarantee about the customer. If the introducer is not proper than state bank charges RS 5000/- per head from that employee of the bank who has opened the account of the customer on the request of the introducer.

Procedure of Account Opening: First of all, the customer is required to fill an application form. Then he attaches the photocopy of his identity card and fills the signatory cards. Now he fills the pay-in slip and deposits money on the counter. Bank allotted an account number within one day after confirming from the head office which is at Mall road Lahore. Now he fills the payin slip and deposits money on the counter. Following things are needed for opening of account: Account opening form Specimen Signature card Next of kin Letter of thanks Issuances of cheque book

Account Opening Form: Account opening form consist of Category of account Currency Title of account Account number Customer information Initial deposit Authorized person in case of customer death

Required Procedure for Opening an Account: First of all, the customer gets an application from the bank, which requires all information necessary for opening account and also the documents required. account can be opened as: 1) An individual account 2) Joint account 3) Proprietorship account 4) Limited company account 5) Partnership 6) Club, society, association and trust An

Information Required by the Bank:

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Name Address Telephone No. Currency of Account Nature of Business

Country of Residency Special instructions regarding the account Signatures

Documentation In case of limited company accounts: Photocopy of National Identity Card of each director Application form Copy of companys memorandum and articles of association List of directors Copy of board resolution Certificate of incorporation Their signature cards Certificate to commence business

Documentation In case of Partnership Account: Application form A copy of partnership deed Signature cards of partners Registration certificate copy A copy of National Identity Card of each partner

Documentation In case of Club, Society, Association or Trust : Application form Copy of rules Certified copy of resolution Signature cards

When the concerned officer is satisfied then he opens the account and gives an account number that will be used in all communications with the bank in regard to the account and when making deposits and withdrawals. Bank has the right not to open an account without assigning any reason or to close the account if it is not operated in a satisfactory manner by the instructions of the head office.

Payment of Foreign Money: Western Union Money Transfer:

Western union money transfer is a fastest way to receive money worldwide. It is working in almost 200 countries. Different Govt and private organization are dealing with WUMT, Govt organization e.g banks Private organizations e.g Zarco, Money changer, Dollar East, Master Currency Main office of WUMT is situated in Dubai, it is a procedure of counter payment Procedure of Payment: WUMT just needed identification, no need of a/c, its a counter payment. Procedure of payment is that the customer came to specific person who is dealing with WUMT tell him the 1) MTC NO 2) Receiver name
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First name Middle name Last name

3) Sender name First name Middle name Last name

4) Telephone no 5) Photo copy of ID card 6) Expected amount 7) Test question After if the that related officer feed MTC # (mail transfer control) , it is unique number not less then 10 digits, receiver name , his/her 1 st name and last name, and sender name to check whether amount is come or not . When all these things are correct then give a form to the receiver, he/she filled the specific form, after that office done his signature and give one copy to customer, other copy send to the cash counter for payment and the last copy for put in file for the purpose of record. Payment is made only in Pak rupees. WUMT Form: It form is divided into three sections 1st for receiver information, his name, address and telephone number 2nd section for sender, his name, address telephone number 3rd section is for expected amount, MTC number, test question, signature

There are three copies of form 1st for counter payment, 2nd for customer and 3rd for branch record.

Foreign Demand Draft: Foreign Demand draft is also known as FDD. A person who wishes to remit money to someone in another place may if he does not send his own cheque, obtain from his bank a draft on demand payable to the person who is to be paid the money. It may be drawn upon one of the bankers own branches, or upon some other bank where exists for draft to be drawn.

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Types of Accounts: Current accounts: Faysal Sahulat (Pak Rupee Current Account): Faysal Sahulat is a transactional account specially designed for individuals or business customers who want instant access to their funds with no restrictions on the number of transaction. Features: Account can be opened with an initial deposit of Rs. 5,000. Unlimited transaction facilities. On maintaining an average balance of Rs. 300,000 following additional facilities

Basic Banking Account: As per SBP prudential communicated via BPD circular No.30, Faysal Bank has introduced the Basic Banking Account (BBA) to cater the needs of low income groups having the following features. Features: Account can be opened with Rs. 1000/. No requirement for maintaining a minimum balance Maximum of two free deposits and withdrawals are allowed in a month. Free of charge statement of account for customers once a year. In case more statements are required than standard charges would be applicable. Free ATM transactions on Faysal Bank ATM machines. However charges would apply on non Faysal Bank ATM machines as per SOC

Saving accounts:
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Faysal Savings: Faysal Savings is specially designed to cater to your hard earned savings.

Rozana Munafa Plus: To provide the best possible returns for individual, corporate and business customers, the Rozana Munafa Plus Account offers you the opportunity to earn profit every day and get your profit month.

Faysal Premium: Faysal Premium is a savings account specially designed for high value deposits with attractive profit rates having the following features. Faysal Moavin Savings Account: Faysal Moavin is a Savings account made for genuine individual savers like you. Faysal Moavin offers the perfect combination of savings account matched with the flexibility of a current account. Access to account through on-line banking at all Faysal Bank branches across the country. Easy access through cheque book an ATM/Debit card. The ATM/Debit card can be used at over 2000 ATMs in the country.

Term deposit: Faysal Izafa:

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At Faysal Bank we realize that every customers financial needs are different. As a result, the Faysal Izafa Term Deposit is designed to provide individuals and corporate customers an opportunity to grow their money securely and earn attractive profits. Features: Account can be opened with an investment as low as Rs. 25,000/. Tenure from one year to five years. Annual and monthly option available.

Foreign Currency Account: Faysal Mahfooz Sarmaya: Faysal Bank endeavors to build and strengthen customer relationships by providing innovative banking products and services. To provide convenience and value to customers with foreign currency related needs, Faysal Banks Mahfooz Sarmaya foreign currency account offers attractive features:

Current Account: With Mahfooz Sarmaya Account, you become eligible for Pak Rupee financing facility of up to 75 percent of the deposit in your account at very competitive financing rate. With Mahfooz Sarmaya Account, you automatically qualify for special rates for car and home financing. FCY Saving Plus: FCY Saving Plus is a new foreign currency savings account with attractive profit rates where customers get their profit on a monthly basis.

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On maintaining the monthly average balance equivalent to USD 50k or above, the following additional facilities are provided. Free online banking Priority Banking Borrowing in PKR upto 90% of FCY

Services:
PocketMate (Visa Debit Card): Combining the wide acceptability of a credit card and the thoughtful prudence of an ATM card, Faysal Bank PocketMate is the most convenient way to carry cash. No more fear of overspending. No more searching for the nearest ATM. PocketMate Visa Debit Card provides you with the freedom of world wide acceptability at over 27 million merchant outlets as an ATM card operative at all ATMs in Pakistan plus at over 1 Million ATMs worldwide bearing VISA logo. Product Features: Worldwide Acceptance: Travel the world and enjoy the freedom of using your PocketMate Visa Debit Card. It gives you access to over 27 million shops and 1 million Visa ATMs all over the world, giving you the freedom of payment anywhere in the world. 24-Hour Customer Service: Our 24-Hours Customer Service is there to help you with your requests. Our welltrained and qualified Customer Service team will assist you in answering your queries, registering and resolving your complaints, reporting a lost or stolen card and activating your card. Overview of Expenses: Each single charge and each withdrawal of cash at ATM made using your PocketMate
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shall be clearly itemized on your bank statement enabling you to easily check the status of your account. Three Supplementary Cards: PocketMate also gives you the facility of having up to 3 supplementary cards issued against one primary card. All supplementary cardholders will be able to conduct ATM or Debit transactions within the limits of the primary card account. Lost Card Protection: Card is safer than cash! Feel safe even in the event of losing your card!! All you need to do is to call our 24-hour Customer Care, and a new card would be issued to you within a week. You are protected from any financial liability arising from any purchase transaction made on your lost card after it has been reported lost. Delivery of PocketMate: Your PocketMate will be delivered to your branch within 5-7 days of your application submission. Travelers cheque: You may purchase American Express, US Dollar and Pound Sterling Travelers Cheques at selected branches of Faysal Bank. Transfer of Funds: You can deposit and withdraw cash from any branch of Faysal Bank, regardless of which branch your account is in. You need only to carry your chequebook. Safe Deposit Lockers: At Faysal Bank, we offer our customers Safe Deposit Lockers in a pleasant and secure environment. All lockers are discretely placed within the Banks professionally guarded premises. Lockers are available in three different sizes to suit individual customer needs at reasonable rentals. Faysal Bank also offers an added insurance feature with locker.
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Non Stop Banking: All branches of Faysal Bank remain open for business from 9 a.m. to 5 p.m. from Monday to Thursday and Saturday. On Friday, the bank is open from 9 a.m. to 12.30 p.m. and then again from 3 p.m. to 5 p.m. To suit your needs, we have extended our banking hours on Saturdays. Now you can enjoy our consistent and quality service from 9 a.m. to 5 p.m.

Marketing DEPARTMENT:
Competitive Strategy: FAYSAL Bank strongly believes that the customers can be attained and retained only by providing them the services they want. FAYSAL banks competitive strategies are focused on making their existing customers loyal because they believe that it is their existing customers who attract new customers. Bank uses KYC (Know your customer) forms to have complete acquaintance with their new customers. Target Market: Banks main focus is not on the retail banking but on the corporate banking rather. In the retail banking they target salaried individuals, housewives, retired individuals and anyone who has the potential of providing legal deposits to the bank. Corporate customers being the main target of the bank get handsome packages of loan and other financial services. The banks main source of revenue earning is also the corporate sector customers. VARIETY in PRODUCTS: FAYSAL bank has skillfully crafted their products to use them as their core competencies and also as their tools for competitive strategy. The products include

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Agricultural Finance, Import Export Business/Trade Finance, Running Finance, and Demand Finance. These products serve multiple purposes to bank. SERVICES as COMPETITIVE TOOLS: Same is the case with the services offered by Bank. Services are the main tool through which the bank acquires new customers and retain them. These services are not merely ment to earn profit, but also to keep pace with the changing needs of the customers and modern days banking trends. These services include Home Remittances, Remittances, Hajj Services, Utility Bills, Lockers and Commodity Operations. Along with these core services provided by the bank, online banking and Internet banking serve as supplementary services. These products and services are mainly directed towards customer satisfaction and bank uses it for the customer satisfaction as their competitive strategy. Some of the many benefits availed by the customers are mentioned as follow in banks own style. Features Online: Faysal Bank now offers free online banking to its customers on Faysal Sahulat Current Account. The account is specially designed to address the needs of those individual (joint, salaried, retired) and business customers who seek instant access to their funds at any Faysal Bank Branch across Pakistan. Check your account balances Transfer funds between your own accounts and to a third party account You can use your card for loan account payments Check transaction history of your accounts

Internet Banking: Banking at consumer fingertips Internet Banking offers the customers convenience to manage and control his banking and finances when he wants, where he wants! It's

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Simple, Convenient, Secure and Faster. So, just by clicking one can enjoy this facility.Features of internet banking 24x7 Access The customers now have access to your account 24 hours a day, 7 days a week. They can transfer funds or even pay bills even if it's a holiday. Secure and Faster Secured & encrypted with latest tools and technologies, internet banking is the choice for secure and fast Internet Banking. Simple and Convenient Easier navigation and help provided at every step, so the customers can have most out of this service. With convenience is just a click away. Toll Free Number: Connect to FAYSAL bank ONLINE by dialing from anywhere within Pakistan. Your call costs you nothing because it is toll free. This just goes to show that we at FAYSAL bank always put your interests first

Convenience: Why visit the bank when you can better use your precious time to meet other commitments? With ONLINE, our special discounted charges also offer you substantial savings. Give yourself the advantage of breakthrough innovation and cutting edge and get time on your side

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Human Resources Department:

Faysal Bank is a pro-active, people driven organization where the employees are our top most priority. The Bank not only provides challenging career opportunities but also excellent training in all areas of banking. Management Training Programmes The Management Training Program is a 3 months rigorous course of instruction on all aspects of banking for young professionals. Our training program is designed to polish the Management Trainees' knowledge of banking and induce a spirit of professionalism in them. In the Faysal bank the environment is formal. Employees do team work & help each other & very cooperative to each other. Recruitment: In Faysal bank relies on two channels. Internal External

Internal: If employees are competent and can perform well then they are promoted. External:

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Faysal bank also hires competent people from outside. For this purpose they give advertising on Newspaper & website. Some times hiring is from external and on deposits base. Selection: Two type of employees are selected

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a) Permanent b) Temporary Employees are selected by written test. Those candidates who clear test, they are called for interview. Then employees are selected. Some times selection is without test & only on interview bases. In faysal bank employees become permanent after two years. Training: In Faysal bank training are done when it is necessary. If training is at micro level then employees go to Multan. If at macro level then trainer comes in R.Y.K branch.

Promotion: Promotion is very slow in faysal bank. faysal bank uses grading system. OG-1 OG-11 OG-111

Few employees are on permanent basis. Most employees work as third party contract.

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SWOT ANALYSIS:

Strengths:
Bank has also invested heavily in information technology resources, which has now allowed the bank to develop one of the most comprehensive and advanced systems available. With the help of this system, Bank has now achieved an "online" status via real time facilities and features available through nationwide network. With a team of highly qualified professional, FAYSAL Bank is able to use its real time system resources to provide customers with a comprehensive account of their transactions on a daily basis. With the new improved system, FAYSAL Bank is able to map all transactions and is able to provide all necessary details to cash management clients.

Weaknesses:
FAYSAL bank has the centralized system of processing trade related transactions. Any customer who wants to export or import any product needs spontaneous transactions to take place. But due to centralized system the approval of all the transactions has to taken from head office. Although this system is good on part of bank but not favorable on part of customer, as the processing time for transactions lengthens which create bad impact on customers.

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Organizational structure of FAYSAL bank is Functional based. Functional structure groups the members of organization based on their work activity. Every employee is

Promotion is slow. Salary package is not so much attractive. Clients of Faysal Bank are less in number as compare to its some competitors

Opportunities:
For banking industry acquisitions are the best way and FAYSAL Bank has adopted this strategy for the acquisitions of funds and for strengthening and expanding itself through affiliation with leading international brands and acquiring the operations of leading banks. Its the fastest growing bank in FAYSAL Bank is an active player in the loans business. Its strength in loaning stems from its ability to forge strong relationships not only with borrowers but also with bank investors. Bank can capture more markets by introducing new products for business community, as it is the only group, which can contribute more towards increasing the assets of the bank. The products, which the bank currently offering includes, Ready cash, Business Power, and Business Account. Bank can touch new customer segments through these products FAYSAL bank is now looking in to new ways of providing banking service to its customers. New concept of mobile banking has been introduced by the bank, which will prove to be a remarkable success in the field of consumer banking group.

Threats:
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Although merging and acquisitions are a good way of expanding the operations but at the same time competition and challenges also increase. Bank is required to maintain competitive rates and facilities for its depositors and its borrowers. Bank has to maintain a balance between its liabilities and assets structure. Turn

Turn Over rate is very high. The sad part is that our industrial base isn't growing and industrial demand for credit is, therefore, low. Banks is aggressively lending in the consumer sector. Cars, motorcycles, home mortgages. Industrial sector is the most powerful sector which can contributes towards assets of bank. But in Pakistan due to instability in economic condition this sector is not flourishing too much. As a result the rate of industrial loaning is also very low. If bank continues in advancing consumer loans then it will become a threat for the assets of bank and resources of the bank will continue to be wasted.

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BUSINESS PROCESS ANALYSIS:

After working in that environment of FAYSAL Bank of Pakistan I found following points in analyzing Business Process of the Organization. Caring Environment For the Customer: The environment of the bank is caring for the customers and every customer is dealt with proper care and attention. All the employees have very professional attitude and know the worth of the customer for the business. Well-defined tasks and duties: The tasks and duties are defined in such a way that it becomes very easier for the employees to perform their assigned tasks. Due to the implementation of modern techniques the efficiency and accuracy of the work force has been greatly increased. Proper supervision: There is a proper supervision system to check and evaluate the performance of each employee. It is the duty of Operations Manager to make sure that every employee is giving the desired performance. Cooperative and Supportive Staff: The behavior of the staff with the customers is very cooperative and supportive and every employee is ready to facilitate the customer on his best in order to increase the customers satisfaction level.

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OBSERVATIONS:
FAYSAL bank is a financially sound bank. It is now financially more powerful and secure with superior operational capabilities, wider distribution, and greater depth in human resource skills. This development has led to the formation of one of the largest local private bank in Pakistan. The bank has come a very long way in a very short span of time. With stronger brand image and firmer footings the bank has been able to leverage its infrastructure to launch new products and services. For FAYSAL bank customers are the first priority. Sole of any business are the customers and their satisfaction is an achievement for the organi. Management believes that satisfied customers are one of the key factors for future growth of bank. Keeping in mind the diverse needs of customers, FAYSAL bank has launched several products and services ranging from deposit generating liability products to mortgage and financing asset products to ATMs and charge cards. Bank has restructured its consumer banking division by further dividing it into three major business units: Consumer assets Personal finance Cards

This allows having a more focused approach on different segments of the market

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CONCLUSION:
FAYSAL bank will remain an aggressive and innovative financial institution and continue to adhere to the tradition of understanding its customers needs and looking for new ways to serve them. Further integration and productivity gains will result in stronger performance in terms of revenue as well as service quality in the coming years. The strong leadership of Board and management and the relentless effort of the staff at FAYSAL bank will be able to offer more superior products and services to customers and to contribute more to economic and social development of Pakistan while developing a bigger future for it.

SUGGESTIONS:

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