Internship Report

ON
KASB BANK
Abdali Road Branch, Multan

Presented By:

Musadiq Ejaz MBA (Finance) Session: 2007 2010

D EDICATED TO M Y P ARENTS W HO A LWAYS C ARE M E

PREFACE
Practical work is an integral part of MBA (Finance) degree program. The internship scheme provides hands on work experience to the students. I have also been assigned to do internship of six weeks period in KASB BANK. With my humble knowledge and experience, I make every possible effort to gain practical knowledge about the banking operations in Pakistan. I have tried to my vest, no doubt, there may be many flaws and room for improvement but clearly it shows my own efforts, which I had done honestly to complete this report.

Musadiq Ejaz
MBA (Finance)

Acknowledgment
Person is not perfect in all the contexts of his life. He has a limited mind and minor thinking approaches. It is the mercy of almighty ALLAH that shows the man light in the darkness and the person finds his way to the light. Without mercy of ALLAH, person is nothing but a helpless creature. Same is the case with me, as I faces many difficulties during the completion of this report and have been successful in fulfilling my duty assigned to me only because of the help of ALLAH. I feel pleasure to admire all the management of department of Institute of Southern Punjab for their tireless efforts for the betterment of the students and provision of better educational atmosphere. I am also thankful to all staff members of KASB BANK (Multan Branch) for their help and guidance.

Musadiq Ejaz
MBA (Finance)

HISTORY OF BANKING
4

IN PAKISTAN
The partition plan was announced on June 3, 1947 and August 15, 1949 was fixed as the date on which independence was to take effect. It was decided that the Reserve bank of India should continue to function in the dominion of Pakistan until September 30, 1948 due to administrative and technical difficulties involved in immediately establishing and operating a Central Bank. At the time of partition, total number of banks in Pakistan were 38 with 195 offices in PAKISTAN but by December 31,1973. There were 14 scheduled Pakistani commercial banks 3,233 offices all over Pakistan & 74 offices in foreign countries. The total deposits in Pakistani banks stood at Rs.880 million whereas the advances were Rs.198 million. The Governor General of Pakistan, Muhammad Ali Jinnah issued the order for the establishment of State Bank of Pakistan on 1st of July 1948.

KASB

There were 14 Pakistani scheduled commercial banks operating in the country on December 1973, the name of these were: 1. National Bank of Pakistan 2. Habib Bank Limited 3. Habib Bank (Overseas) Limited 4. United Bank Limited 5. Muslim Commercial Bank Limited 6. Commerce Bank Limited 7. Australia Bank Limited 8. Standard Bank Limited 10. 11. 12. 13. 14. The 9. Bank of Bahawalpur Limited Premier Bank Limited Pak Bank Limited Lahore Commercial Bank Limited Sarhad Bank Limited Punjab Provincial Co-operative Bank Limited Pakistan Banking Council prepared banks

KASB

amalgamation schemes in 1974 for amalgamation of smaller banks with the five bigger banks of the country. These five banks are as under:
1.

National Bank of Pakistan United Bank Limited Muslim Commercial Bank Limited Allied Bank Limited

2. Habib Bank Limited 3. 4. 5.

Nationalization of Banks was not done 1st January 1974 under the Nationalization act 1974, due to certain objectives. But it had negative effects on efficiency of the banking sector afterwards a privatization Commission was set up on January 22, 1991. Many new private banks have incorporated, since then; KASB BANK is one of the namely established private scheduled banks in Pakistan.

WHAT IS A COMMERCIAL BANK?

A bank is a financial institution which deals with money and credit. It accepts deposits from individuals, firms, and companies at a lower rate of interest and gives at a higher rate of interest to those who apply for loan. The difference between the terms at which it borrows and those at which it lends from the source of its profit. A bank, thus, is a profit earning institute. Any bank that performs this functioning is called the commercial bank.

KASB

According to Crowther:
A bank is a firm which collects money from those who have it spare. It lends money to those who require it.

According to Banking Ordinance 1962:

According to Section 5(b) of Banking Ordinance 1962, meaning of banking is as under:
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Banking company is a company which transacts the business of banking in Pakistan, mainly of accepting, for the purpose of lending and investments of deposits of money from the public, repayable on demand or otherwise and withdraw able by cheque, draft, order, or otherwise

Introduction to KASB BANK

KASB Bank Limited was incorporated on October 13, 1994 as Platinum Commercial Bank Limited. The name of the Bank was subsequently changed to KASB Bank Limited on February 21, 2003, when the majority shareholding was acquired by the KASB Group. The Bank operates through a network of 21 branches strategically located all over the country, with another branch to be established shortly at Karachi.

KASB

The Board consists of seven directors having diversified experience of banking, leasing and brokerage and is chaired by Mr. Nasir Ali Shah Bukhari. Mr. Ashraf N. Irshaduddin a seasoned banker heads the Bank as its President & Chief Executive Officer. The merger of Khadim Ali Shah Bukhari & Co. and KASB Leasing Limited into the Bank increased the paid-up capital of the Bank to Rs. 1.293 billion as on December 31, 2003 complying with the regulatory requirements. Bank also owns a 100% stake in KASB Securities (Pvt.) Limited and KASB Technology Services Limited. Bank's capital base is also strong and at December 31,

2003 capital adequacy ratio stood at 15.50% against the requirement of 8%. In April 2004, Pakistan Credit Rating Agency (Pvt) Limited (PACRA) had assigned medium to long-term entity rating of the Bank to BBB+ and short-term rating to A2 giving a Positive outlook. The Bank is managed by a team of professionals having a varied experience of both domestic and international banking. The Management has focused on restructuring, technology and creating a market niche for its products. The Information Technology infrastructure has been upgraded and from March 2004 branches all over the country are on-line. Further ATM facilities shall be introduced at the main branches. Other technology driven enhancements in pipeline are POS, E-banking etc. Business Process Reengineering being carried out within the Bank is in the finalization stages, which is the first step towards improving operational efficiency and implementation of bank-wide Information Technology Systems in order to achieve superior quality banking services. The Bank offers a complete range of financial services and the client base at large has access not only to commercial and consumer banking services, but also to lease financing, equity &

KASB

Debt securities brokerage, investment banking and investment advice. The Bank believes in providing quality service to the customers with personalized attention.

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OUR MISSION OUR VISION

11

VALUES

12

HIERARCHY STRUCTURE
PRESIDENT

SENIOR EXECTIVE VICE-PRESIDENT EXCUTIVE VICE-PRESIDENT

SENIOR VICE PRESIDENT BRANCH HIERARCHY

VICE PRESIDENT

ASSISTANT VICE PRESIDENT

OFFICER GRADE

OFFICER GRADE

OFFICER GRADE

JUNIOR OFFICER

PABX OPERATOR

DRIVER

PEON

13

DEPARTMENTS

DEPOSIT DEPTT.

REMITANCE DEPTT.

FOREIGN EXCHANGE DEPTT.

ACCOUNTS DEPTT.

CREDIT DEP

Name of Departments
Deposit Deptt. Remittance Deptt Foreign Exchange Deptt Accounts Deptt. Credit Deptt Consumer Deptt

Name of Incharge
MR.SALMAN MR.HUMAYUN.K.A.BUTT MR MALIK KHIZAR MR.SAMMAR RAZA MS.HUMERA ALTAF MS. SAIMA RASHEED MR. M.SABIR KHILJI

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Board of Directors
Chairman
Mr. Nasir Ali Shah Bukhari

Directors
Mr. H.U. Beg Chief Justice (Retd.) Abdul Karim Khan Kundi Mr. Sohail Wajahat H. Siddiqui Mr. Tariq M. Rangoonwala Mr. Arif Ali Shah Bukhari Mr. Naveed Hussain Shah

KASB

Management
Mr.AshrafN. Irshaduddin - President & Chief Executive Officer Mr.Parvaiz Ahmad - Executive Vice President, Chief Operating Officer Mr.Shamim A.Naik - Executive Vice President, Country Risk Manager Mr.Muhammad Nasir Jamal - Senior Vice President, Company Secretary and Chief Financial Officer

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KASB Bank Branches

Southern Region
KARACHI
Main Branch Business & Finance Center, Ground Floor, I. I. Chundrigar Road, Karachi Tel: (021) 2446005-10 / 2446772-77 Fax: (021) 2446781 UAN: 111 555 666 Karachi Stock Exchange Branch 93-95, 2nd Floor Karachi Stock Exchange Building, Stock Exchange Road, Karachi Tel: (021) 2473561-63 Fax: (021) 2473564 Jodia Bazar Branch Suleman Street, Behind Lal Masjid Near Achi Qabar, Karachi Tel: (021) 2400322 / 2400458 / 2434805 / 2420657 Fax: (021) 2433519 Shahrah-e-Faisal Branch 1/1-A, Block VI, P.E.C.H.S, Main Shahrah-e-Faisal, Karachi Tel: (021) 4313236-38 Fax: (021) 4538638 Gulshan-e-lqbal Branch Friends Paradise, SB 36, Block No. 13-B, Main University Road, Gulsha-e-Iqbal, Karachi Tel: (021) 4981330-31 Fax: (021) 4981334 Clifton Branch Plot No. DC-4, Block No. 9, KDA Scheme No. 5, Merchant Centre, Clifton, Karachi Tel: (021) 5861615 / 5878778 Fax: (021) 5878779 SITE Branch SITE Commerce Park, B/9-B1, SITE, Karachi

KASB

HYDERABAD
Hyderabad Branch 194/29-30, Saddar Cantt, Hyderabad Tel: (0221) 729917-18 / 729502-03 Fax: (0221) 785977 UAN: 111 555 666

QUETTA
Quetta Branch 2-10/29, Shahra-e-Iqbal, Quetta Tel: (081) 836518 / 836948 Fax: (081) 842531 UAN: 111 555 666

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Northern Region
LAHORE
Lahore Stock Exchange Branch 110-111, 1st Floor, Lahore Stock Exchange Building, 19, Khayaban-eAiwan Iqbal, Lahore Tel: (042) 6367794-97 Fax: (042) 6367798 Gulberg Branch 76-B, E/1, Main Boulevard, Gulberg III, Lahore Tel: (042) 5764288-89 / 5762146 / 5764384 Fax: (042) 5755358 UAN: 111 555 666 Defence Branch 81-Y, Phase III, D.H.A Lahore Tel: (042) 5731811 Fax: (042) 5722228

ISLAMABAD
Islamabad Branch 90-West Razia Sharif Plaza, Jinnah Avenue, Blue Area, Islamabad Tel: (051) 2826181- 83 Fax: (051) 2826184 UAN: 111 555 666

PESHAWAR
Peshawar Branch AYS Centre, Arbab Road, Saddar, Peshawar Cantt Tel: (091) 5279432 / 5279625 Fax: (091) 5279838 UAN: 111 555 666

KASB

MIRPUR (Azad Kashmir)

Mirpur (A.K.) Branch 629, Sector B/1, Bank Square, Nangi, Allama Iqbal Road, Mirpur (A.K.) Tel: (058610) 42841 / 44877 Fax: (058610) 42742 UAN: 111 555 666

Abbot Road Branch 19-Abbot Road, Opp. PTV Station, Lahore Tel: (042) 6305143-44 Fax: (042) 6305142 Circular Road Branch 77-Main Circular Road, Lahore Tel: (042) 7639040-42 Fax: (042) 7660694

MULTAN
Multan Branch 76-Holiday Inn, Abdali Road, Multan Tel: (061) 587701-03 Fax: (061) 587705 UAN: 111 555 666

RAWALPINDI
Rawalpindi Branch 32-Saddar Road, Ferozsons Chambers, Rawalpindi Cantt Tel: (051) 5527841-42 Fax: (051) 5527844

FAISALABAD

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Faisalabad Branch 14-P, Kotwali Road, Faisalabad Tel: (041) 649667-70 Fax: (041) 649672 UAN: 111 555 666

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GUJRANWALA
Gujranwala Branch 84-85, GDA Trust Plaza, G.T. Road, Gujranwala Tel: (0431) 252348 / 252358 / 254429 Fax: (0431) 254529 UAN: 111 555 666

SIALKOT
Sialkot Branch 2/139,Abbot Road, Sialkot Tel: (0432) 604990-92 Fax (0432) 589044 UAN: 111 555 666

KASB

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Account Opening Department

Borrowing funds from different sources has become an essential feature of todays business enterprises. But in the case of a bank borrowing funds from outside parties is all more vital because the entire banking system is based on it. The borrowed capital of a bank is much greater than their own capital. Banks borrowing is mostly in the form of deposits. These deposits are lent out to different parties. Such deposit creation is done through opening an account in the bank.

Types of Accounts

In KASB, there are the following types of accounts: Current Account. Saving Account.

KASB

Current Account
In current account there is no interest on it. It is for only transaction purposes. They are paid on demand. When a banker accepts a demand deposit, he incurs the obligation of the paying all cheques drawn against him to the extent of the balance in the account. As there is no profit paid on this account it is also called checquing account because cheques can be drawn on it. Current account is mostly opened for business.

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Saving Account
The purpose of this account is to induce the habit of saving individuals in the neighborhood. The minimum deposit for opening the account is Rs.1000/There are three types of savings Account. KASB Smart Savings-Classic

KASB
KASB Smart Savings-Classic
Less than 100K 100K to < 500K 500k and Above

KASB Smart Savings-Gold KASB Smart Savings-Corporate

0.5% 2.50% 3.50%

KASB Smart Savings-Gold

Less than 1M 1M to < 5M 5M to < 25M 25M and Above 0.75% 3.75% 4.25% 4.50%

KASB Smart Savings-Corporate

Less than 100K 100K to < 1M 0.25% 1.50%
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1M 5M

to < 5M to < 10M

2.50% 3.00% 3.50% 4.25% 5.00%

10M to < 50M 50M to < 100M 100M & Above

(Profit calculated on daily Average Balance).

Notice Deposits
Notice deposits are kind of fixed deposits. The minimum balance Requirement for opening the account is Rs.5000/- and payment is drawn on maturity of the specific period. Notice deposit is of the two kinds:

One for which a prior notice of 07 days and above is required from the customer before with drawing deposited amount and for which rate of return is 3.00% Second for which a prior notice of 30 days and above is required from the customer before with drawing the deposited amount and for which rate of return is 3.50%.

KASB

Term Deposits
A term deposit is a deposit that is made for a certain periods of time. At the end of the specific period, the customer is allowed to with draw the principle amount. The term deposit account varies from one month to 5 years, and the minimum balance requirement is Rs.5000/- As the PLS TDR is in the shape of deposit receipt, no cheque-book issued.
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The amount of profit is given to deposits in three ways: By cash By sending a bank draft to depositors home address or officers or whatever is specified as mailing address. The amount is credited in any one of the checking accounts of the depositor.

KASB Smart Term Deposits

Profit Rates for Individuals Tenor of Deposit 1 Month 2 Months 3 Months 6 Months 9 Months 1Year 2 Years 3 Years 4 Years 5 Years Annual Nominal Rates 4.50% 4.75% 5.50% 6.00% 6.50% 7.25% 7.50% 8.25% 8.75% 9.25% Profit Rates for Corporate Annual Rate

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1-24.99M

25-49.99M

50-99.99M

100-199.99M

200M Plus

1 Month 3 Months 6 Months 1 Year 2 Years 3 Years

3.50% 5.00% 6.00% 6.50% 7.00% 7.50%

4.50% 5.65% 6.50% 7.00% 7.20% 8.00%

5.00% 6.00% 6.75% 7.35% 7.65% 8.50%

5.75% 6.65% 7.15% 7.50% 8.00% 9.00%

6.00% 7.00% 7.50% 7.75% 8.15% 9.25%

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Account Opening Procedure

For the checking accounts (C/A, SAVING), there are different types of account holders are required for all these types of account holders. The operation/procedure requirement that is needed for Individual Account differ greatly from Joint Account, Proprietorship Partnership, Limited Company and Club Society or Association as explained below.

Individuals Account
When a single man or woman opens an account in his/her own name and has the right to operate it is called individual account. Documentation

For literate person copy of National Identity Card is required as a primary requirement. For illiterate person, along with the copy of National Identity Card requirement he or she must come in person for opening the account.

KASB

Operation
The person place a Check Mark in the type of account and type of operation required. He/she fills in part-1 of the form, a fix his/her either two or four similar signature (or thumb expression in the signature space and get it introduced and signed by a person who
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already has an account with the bank and write his account number in the specific rows in a specific space. The person fills in next of kin position where he/she father, mother, husband/wife or any other relatives name, his/her address, phone number and affix his/her signature to certify this requirement. This requirement is needed because in his/her absence bank can have

KASB

correspondence with the specific person. The person put her/his signature (or thumb expression) on the signature specimen card (SS CARD) similar in the area on the form. One the back of SS card mailing address, telephone number, person to contact and introducer space is filled in. These entire requirements are necessary for future. The person deposits the initial amount for opening account on to the cash counter. The person put his signature on form-A (check book requisition) on two places in
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authorized signature and fills in the Title of Account space by writing his name.

Joint Account
When two or more persons, neither partners, nor trustees, open account in their name is called joint account. Husband and wife or two persons of same sex can open joint account.

Documentation
For joint account copy of N-I-C Card of all the persons is obtained other things remaining same as in individuals account.

Proprietorship Account

KASB

When the owner of the firm operating singly, opens an account in his firm name, this account is called a proprietorship account.

Documentation
For this kind of account, an application for opening the account on the firm letter pad (having the firm name) is required along with the N-I-C Card of proprietor.

Partnership Account
The account is opened in the firm name and all partners designate one or two persons to act on behalf of the partnership firm all acts on behalf of firm. The partners in the partnership firm are liable for the acts of the firm jointly and severely. Every partner in a
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firm has an implied authority bind his co. partners by drawing and enclosed cheques.

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Documentation
Copy of N.I.C. Card of all partners. Application to open the account on the firm letter pad. Partnership deed in case registered partnership firm. Letter showing the implied authority of one or more partners to act on behalf of the firm.

Limited Company Account

Documentation

Memorandum of associations. Articles of the association.

KASB

Resolution of the Board of Directors. Certificate of incorporation. Certificate of commencement of business. N.I.C.s of Directors.

Letter of Thanks
At the start of the Accounts, 2nd day KASB issues letter of thanks to Account opener and Account introducer for the trust to have on KASB Bank.

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Other Responsibilities of Account Opening Department

Cheque-Book Issuing
Check books are issued only for chequing account such as current account, saving account and KASB account. They are not issued for other fixed and term deposits because of their long term accounts nature.

Account Closing
Account is closed on the written request of the customer KASB debits Rs.100/- as charges for closing the customer account from that account. The account holder with draws the amount by writing a cheque and just leaves Rs.100/- in his account

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Procedure for Opening Other Account

1. Notice Deposit
The procedure for issuing notice deposit in KASB is as follows: The customer comes to the bank and specifies the number of days for which he wants to deposit hid money in notice deposit. The credit voucher is made for the amount of cash to be deposited, the presence of account is not necessary. The date of opening, the period the name of the customer, the signature etc. is all written on the form. The notice deposit receipt is filled accordingly. All the requirements are carried out the signature of the customer and the authorized officer, the stamp of the bank etc.

KASB

2. Term Deposit
Any person can open a term deposit. He needs not to have an account in the bank. The procedure is the same as that of the notice deposit.

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REMITTANCE DEPARTMENT
The main function of this department is transfer of funds from one branch to another branch or one bank to another bank throughout the country.

Instruments of Remittance Department

The instruments that are handled in the Remittance department are as follow: Demand Draft.

KASB
Telegraphic Transfer. Mail Transfer. Pay Order. OBC. IBC.

Issuance Procedure
The issuance procedure is same for all remittances instruments. We are using DD to explain the Procedure. A demand draft application is given to the customer, when he fills the relevant
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information and signs it. The officer in charge then checks the information form.

The charges such as commission, is charged as per effective schedule of Charges.

In case of cash deposit the cashiers counts his amounts and sign the DD application.

Then the two authorized persons of bills and remittance department signs it.

KASB

The entry is made in the DD issuing register. It is given to the customer. The vouchers and the DD form given for posting at the remittance dept.

The DD advises be printed from the computer and mailed to the respective branch.

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The DD credit advice is received through mail. The Nos are checked and signatures are verified.

An entry is made on the DD payable register, and the voucher is made.

When DD is received, the test Nos are checked, and the payment is made, if DD is over Rs.2, 50,000. I.e. DD payable is nil.

Demand Draft

KASB

A demand draft is an instrument, which is drawn by one bank upon another bank for a specific sum of money payable on demand. It is made by the bank and given to the purchaser against cash or cheque. If two banks are involved, then one bank sends a DD to anther bank. But in customer Bank case the customer sends his DD to the receiver.

Telegraphic Transfer/ Mail Transfer

A telegraphic transfer is a fastest and safest way to transfer money. The message is fixed. Mail transfer is Slow than a T.T. the transfer is through mail.
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Pay Order
It is a cheque drawn by a bank on itself. Pay order is an instrument in which three parties are involved, the purchaser, the bank and the receiver. Any customer can purchase it. It is usually made by govt. Bodies. A single bank is included in this case.

Outward Bills for Collection (OBC)

The bills, which are sent to, their city banks for the local clearing in that city are called outward bills for collection.

KASB
Inward Bills for Collection
The bills, received from other banks out of city for the local clearing, are called inward bill for collection.

Other Functions
Balancing the Register At the Monthly/weekly of the day, all the registers are balanced with the computer balances. The heads and checkes are as follows. DD payable. TT payable.

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 MT payable. OBC Collection IBC collection If the payables are not cleared for a lot of days, a reminder is sent to the respective branches.

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Clearing Department
There is no legal obligation on a banker to collect cheque drawn upon other banks for a customer. However it is function of almost every modern bank of the collection of cheque and bills on behalf of the customer. Clearing department services are provided in order to make arrangements for the economic collection of the cheque, DDs pay and other negotiable instruments. A large part of this work is carried on through the clearinghouse.

Clearinghouse

KASB

Clearinghouse is a place where NIFT(National Institution Facilitation Technologies) members collect the Cheque from different banks and exchange all means of transaction other than cash and then settlement procedure carried out for the balancing of the SBP accounts. The clearance house is in the New State Bank Building KalmaChowk. All the NIFT members from each bank go to the clearinghouse for the first clearing at 9:30 and for the second clearing at 1:30.

First Clearing

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The NIFT members take the outward cheques and go to the clearinghouse. The outward cheques and inward cheques are given to the respective branch. A summary is prepared and given to the

supervisor of the clearinghouse. He balances the accounts of all the banks.

Second Clearing
After the outward cheques, they are checked and the ones to return are to be attached with a memo. Then at 1:30, NIFT members go for the second clearing. At this returned cheques are received. Once again, the summery is prepared and given to the supervisor for balancing. The supervisor balances the accounts of banks. The SBP gives ending position to each member.

KASB

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Role of the Clearing Department

Suppose X is an account holder of KASB, and he has to pay Rs.2, 000/- to Y who is an account holder of MCB. X draws a cheque in favor of Y and gives it to Y. Now Y instead of coming to KASB for payment, deposits the cheque at MCB. The NIFT members will bring those cheques to the clearinghouse and gives it to KASB BANK. The KASB bank checks the validity of the cheques and in the second clearing the NIFT members, it told that his cheque has been cleared.

Updating the Clearing Stamps

The clearing stamps would be updated each morning with the next working days dates the clearing officer. This is done because the cheques deposited by the customers for clearing are presented to the clearing house on the following day of receipt.

Receiving Cheques for Clearing

The depositor would be required to fill in the details of the cheques i.e. date of deposit, title of account, account number, amount in words and figures of the cheques being deposited, name of bank and branch on which the cheque is drawn in the slip. In cases more than one Cheque being deposited for clearing by the customer, multiple entries may be made on the same Pay-in-Slip giving the total

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amount in words and figures of the cheques being deposited along with the individual amount in figures of each cheque. The clearing Officer shall match the details of the cheque with details mentioned on the Pay-in-Slip and ensure that: Cheque is not Specially Crossed to any other bank Bear stamps of other banks, if so those banks have canceled the same. Cheque is not mutilated or torn Cheque is not stale or post dated

KASB

Amount in words and figures on the cheques agree. Cheque is payable at a bank in the city where it is being deposited.

Any alteration / amendment / addition / on the cheque is authenticated by the drawer.

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Affixing Rubber Stamps

Following rubber stamps are fixed on the face and reverse of the cheques received for clearing. On the face of a cheque clearing Stamp. On the face of a cheque Banks special crossing Stamp. On the reverse of a cheque made out to the order of our customer or if the word bearer has been struck off Payees Account Credited Stamp.

On the reverse of a demand Draft Disbursement Guaranteed stamp.

KASB

On the reverse of a cheque, which can be and has been endorsed 1st payees Endorsement confirmed 2nd Payees Account Credited Stamp.

On the reverse of cheque, which has been received, from an upcountry branch for clearing Our banks Endorsement Confirmed Stamp

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Book keeping
There are two registers in this department: o Clearing summary register. o Outward clearing register.

Clearing Summary Register

In this register the clearing summary balance is made. The received cheques and the delivered cheques are written in the respective columns.

Inward Clearing Returns

KASB

There are many reasons due to which Cheques can be returned. Some of the reasons are as follows. Insufficient funds in the account The drawer has stopped payment of the cheque Full signatures of the drawer have not authenticated Alteration and cuttings on the cheque if any Endorsement is Irregular

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Payment has been stopped by the drawer Account has been frozen Drawer deceased

Outward Clearing Register

The outward clearing register is used to write down the detail of the outward cheques. Outward cheques are those cheques, which have been delivered to different banks. The amount of these cheques will be debited to SBP account so these cheques are in favor of us and have a positive effect.

Different instruction is dealt in the clearing department. All negotiable instruments e.g. Cheque Pay order Demand Draft In order to make arrangements for the speedy and economic collection of cheques, bills and other documents payable or deliverable at or through offices of members of clearinghouse clearing services are provided in all the big cities by State bank of Pakistan.
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KASB

Procedure
The branch for clearing items adopts the following procedure. All cheques, drafts, pay orders etc. accepted for clearing shall be stamped with clearing stamp on the face of the instruments, customers, counterfoil and the pay in slip with date of the next working day, say 1.11.96 because the instrument has to be presented on 2.11.96. All cheques received for outwards clearing to be deposited by the customers are accepted on the banks relevant payin slip (KASB DEP FM 007/008) duly filled in by the depositor as per printed columns of the pay-in slip.

KASB

The depositor should write the instrument number, the name, and the branch of the bank drawn on and should sign at the prescribed column (deposited by) for his signature.

The pay in slip along with the instrument is passed on to the operation manager for his signature on the pay-in-slip.

All instruments are received for outward clearing shall be sorted bank wise.

They are posted at the computer in the next date are received print out.
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The grand totals of all schedules amount and number of instruments must agree with the totals as per outwards clearing register.

Clearing Position Statement

After the 1st and 2nd clearing, the clearing positioned statement is prepared. A) B) Inwards cheques, Demand Draft, Pay orders etc. Outwards Cheques, pending cheques

If amount B is greater than amount A, it means that our cash balance at SBP has increased and so it is a favorable for bank. On the contrary, if A is greater than and B it means that one SBP account has decreased and here it is favorable for the bank.

KASB

CASH DEPARTMENT
Cash department is very sensitive and risky part of the bank. Very cautious and competent personnel are needed for the job. KASB has really such a diligent staff with appreciable competencies and will to do work. Main function of Cash department is to deal with cash payment and cash receipts.

CHEQUE
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Cheque is bill of exchange drawn on specified banker and not expressed to be payable other wise than on demand.

The Request of a Cheque

It should be in writing The drawer must not put any condition for the payment of the Cheque Drawn on a specified banker only Payable on demand A certain sum of money Payable to a specified person Signed by the drawer

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Types of Cheque
There are three types of cheque books. 1. 2. 3. 4. 5. 6. Receiving Cashier's Book Receiving Cashier's Book Paying Cashiers Book Paying Cashier's Book Daily cash position Book Daily cash position Book FCY Pak. Rupee. FCY Pak Rupee. FCY Pak Rupee.

KASB

The receiving cashiers book is used to write down the details of the incoming cash. The paying cashiers book is used to note the details of the outgoing cash. The daily cash position books are used to prepare the daily ending balance of the cash on hand. The books for foreign currency are separate while the books for the Pakistani Rupee are separate.

Parties to a Cheque
The Drawer i.e. the customer The Drawer i.e. the banker.

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The payee i.e. the person to whom payment is to be made.

CASH DEPOSIT PROCEDURE

A customer comes to deposit cash in his account. The procedure followed in the cash department in this case as follows: The customer fills the pay -in slip. There are two types of pay-in slips. The red slip is filled if he is a current holder. The cashier receives the pay -in slip and cash. He counts the cash and makes the detail of the notes at the bank of the pay-in-slip. Then he compares the detail with amount written on the pay-in slip. Signs the pay-in Slip. Writes the entries in the Receiving cashier's book, i.e. serial No, account type, Account Number, Cheque No and amount.

KASB

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Puts the stamp of the Cash Received on the pay-in slip of writes the serial number from the receiving cashbook.

The first portion i.e. the Receipt is taken and given to the customer. While the latter portion is handed over to the person for the entry in order to update the data.

CASH PAYMENT PROCEDURE

When a customer comes to withdraw a certain amount from his account, he brings a Cheque along with him. In this case, the following steps are taken.

KASB

The cashier receives the Cheque and checks it whether it is postdated or predated. Cheque can be cashed within six months. A repeated Cheque cannot be cashed.

He takes two signatures at the back of the Cheque from the bearer.

He gives the Cheque for 'posting at the computer. The computer checks Out whether there is balance in the account or not. Other instructions are also received e.g.
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blocked, frozen, etc. The posting is done, the a/c is debited and the Cheque is stamped posted" with the serial number and date. The cashier counts the cash and makes the detail at the back of the Cheque. The cash is paid to the person and the Cheque is stamped Cash Paid" immediately.

Cancellation of Cheque

KASB

Teller prior to canceling the cheque shall invariably verify the regularities of the cheque and style of the signature on the cheque with the specimen on record even to the extents of spelling stokes and dots. The cancellation shall be done by waving a line with a red pen across the signature of the drawer and the teller would sign in full near the signature of the drawer. The head teller would also cancel the cheque in a similar way.

CALCULATION OF ENDING CASH BALANCE

The official time for receiving deposits and payments is till 1:35. However some important customers are accommodated afterwards.
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The cash in hand is counted. It contains the cash at the counter and the cash in the strong room. Generate from the system a report of all payments and receipt during the day.

Then opening balance is taken, i.e. the ending balance of the previous day.

The receipts are added and The payments are deducted Arrange currency notes according to the denomination. This daily cash position is written down on the daily cash position book.

KASB

CASH MANAGEMENT
Cash management is a technique of managing cash according to the requirements of the bank on daily basis. The operation manager manages this aspect of cash. Every Branch has an accountant at the State bank Of Pakistan. A 5% of the total deposits have to be maintaining so there are two main sources of the cash.

o State Bank of Pakistan. o Head Office.

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LIQUIDITY MAINTENANCE
KASB has to maintain 35% liquidity at SBP. Every branch maintains 5% of its deposits at the local SBP. But this 30% is kept in the form of Approved securities, e.g. Foreign Investment Bills and Treasury Bills.

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Foreign Exchange Department

The FOREX department works effectively with an extensive correspondent network. It deals with import and export sections as well.

Import Section
In case of import, first a L/C is opened in the bank on behalf of importer. Importer submits a request for opening a L/C and prepares an application form. The importer seeking to open a L/C must be registered with Export Promotion Bureau, it is the basic requirement. A documentary LETTER OF CREDIT can be defined as: A conditional guarantee given by a bank to named beneficiary (seller of goods), to make payment for the goods dispatched by him to the buyer, against presentation of the called for documents and compliance with all other terms and conditions of the credit.

KASB

Parties to a Letter of Credit

Maximum four parties can be involved in letter of credit.
1.

Account Party: The buyer or the importer on whose account

and request the letter of credit is opened is known as account party or opener.

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2.

Issuing Bank: The bank which issues or opens a letter of

credit at the request of importer is called issuing bank.

3.

Exporter or Seller: The seller or the party in whose favor L/C

is drawn is the exporter. He is also called beneficiary.

4.

Negotiating Bank: The paying bank in the exporters country

on which the draft is drawn, is called negotiating bank or paying bank.

Procedure for Opening Letter Of Credit

General Consideration

Letters of credit are normally opened against prior sanctioned limits. However, where prior sanctioned limit is not available, the branch first submits a CLP to the competent authority.

KASB

Appropriate margin against letter of credit as prescribed in the LC limit is recovered prior to opening of letter of credit.

Where the amount of credit is Rs.5000000/- or above, credit report of the beneficiary is also obtained before establishing the letter of credit. The charges of this report are recovered from importer.
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LC Application
The importer on the banks standard form KASB FE 201 makes application. In case of guarantee, the guarantor signs the clause printed at the foot of the form on the reverse. The signature of both the applicant and guarantor are verified. The application form should bear special adhesive stamp of appropriate value.

The importer himself should fill the application. Details of every LC opened must be recorded in the Category Post Book.

KASB

How to Establish a Letter of Credit?

Branches authorized to deal in foreign exchange can only open documentary Letter of Credit. The branches, which are not authorized to deal in foreign exchange, submit their customers application for opening letter of credit duly completed and signed in all respect along with all other documents to the nearest authorized branch.

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After completion of the above formalities the opening should proceed further as under: Foreign currency amount is converted into Pak Rupee, at TT/OD selling rate.

The names of advising and reimbursing banks are from the International Division. Margin, commission, postage and cable/telex charges (if LC is being opened by cable/telex) are calculated. If the LC is being opened on behalf of an authorized branch it is ensured that margin as prescribed by SBP/Head Office has been fully recovered, where as the commission on LCs of unauthorized branches is shared equally by the opening branch and the forwarding branch.

KASB

Full particulars of the LC recorded in the LC opening register.

Separate folio is allotted for each customer in this register and necessary entries for LC liability and margin are recorded at the time of opening of LC.

Vouchers are passed on the same day.

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Export Section
Export is another section of Foreign Exchange Department. It too generates income to the bank as well as the country. In KASB Multan, three persons operate it. Under the registration (import and export) order 1952 no person can export any commodity from Pakistan unless he is duly registered as an exporter with the Export Promotion Bureau. Bank should ensure that the exporter is registered with WPB before certifying any export Form-E for him. The registration number should be quoted on the relative export form. Export is not being made in this bank since 2001.

KASB CREDIT DEPARTMENT

The earning of a commercial bank is chiefly derived from interest charge on loans and discounts, it is there necessary to consider the position of a banker with regard to loan advances. The profitable uses which banker with regard and advances. The profitable uses, which bankers in the country make of their funds, may be classified as follows. Call loans and repayable at short notice. Investment in Government and other stock exchange securities.

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Purchase and discounting of bills. Loans and advances.

Types of Credit Facilities

The credit facilities extended by the bank are classified as: Funds Based Non-Funded

Funds Based Credit Facilities

If bank provides cash financing to the customer, it is called as funds based credit facility. KASB provides numerous types of funds based facilities to its customers. A few of them are mentioned below.

1. Cash finance 2. Running finance 3. Term finance 4. Finance against packing credit 5. Finance against imported merchandise 6. Finance against trust receipt
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Cash Finance
Cash finance is offered against the hypothecation or pledge of the moveable property/stock of the borrower. In majority of the cases, this finance is allowed against the pledge of stock (cash crops). Cash crops in Pakistan are considered as the following: Wheat Rice Cotton The person who wants to take the finance against any of these cash crops has to give the full details of the crops. A bank representative has to give duty on the go-down. The keys of the Go down are kept with the banks representative. He informs about any movement in the goods from there and keeps full record of every thing offered as the security. The goods, which are offered as pledge, should have higher value than that of loan. It can be 10%, 15%, 25% or any other value above the amount of loan. After full satisfaction the amount of the loan is credited to the customers account. It is special finance account that is credited and the borrower utilizes it for business purpose. A separate cheque-book is issued for this purpose.

KASB

Running Finance
This type of finance is termed as running finance because money goes on coming and going from the account. The customer withdraws the money for his use and deposits in the
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account if he has some excess money. For providing of such finance a current account of the borrower is opened. The conduct of this account is kept under observation for a period of three to six months depending upon the customer. If the borrower has account in some other bank, the bank statement of that bank is also observed. If the turnover of the account is satisfactory, the customer is provided the loan. The amount of the loan is credited in his account. The borrower can with draw the amount from his account with the cheques. It is allowed to the borrower under a pre-sanctioned limit. The borrower can withdraw maximally up to the presanctioned limit. The amount outstanding against the borrower is shown as debit in the account for a partial amount. The mark-up is charged on the daily product basis of the amount out standing. The customer pays the interest only for the amount he has utilized. In case a running finance account is fully adjusted before the expiry of the stipulated period, the limit will have to be got renewed if a letter of continuity is not obtained from the borrower at the time of sanction.

KASB

Finance against Packing Credit

Such finance is allowed to exporters for packing the goods to be exported. Such credit is ordinarily granted after evidence of letter of credit or firm contract in favor of borrower. The loan is advanced against the security of inventory purchased by the borrower. It is important that the customer execute
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hypothecation agreement with respect to such inventory. Additional security is also taken depending upon the risk element. Finance provided against packing credit from bank own sources but not covered under any of SBP Refinance Scheme is reported here.

Finance against Packing Credit (Part 1):

This facility is granted under part 1 of export Re-finance Scheme introduced by the State Bank of Pakistan and is allowed against firm contract or irrevocable letter of credit either opened in favor of KASB or open transferable letter of credit. Other characteristics of this advance are same as in above case.

Finance Against Packing Credit (Part 2):

This finance is allowed to the exporters against their past performance. The advance allowed to the exporter under this scheme is got reimbursed from the SBP. The SBP keeps the disbursed amount in an account called Special Account. No withdrawal is allowed in the Special Deposit Account and the amount is released after 180 days. Interest at the rate of treasury bills is paid on special deposit account.

Finance against Trust Receipts

Documents of title of goods imported through the letter of credit are handed over to the customer against a trust receipt to be signed by the latter signifying that the customer holds the
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goods in trust of the bank. The objective being that the customer discharges the loan from the sale proceeds of the Goods.

Finance against Imported Merchandise

Its name depicts that this type of loan is allowed to the importers to finance their needs for meeting the cost including freight, insurance, and customs and excise duty payable on the imported merchandise. The imported goods are mostly pledged or hypothecated (rarely) by the lending banks finance and charges either fully or partially, on production of the delivery order issued by the banker in favor of the borrower. The delivery order is addressed to the Go down Officer who is in charge of the imported goods pledged.

KASB

Contingent Non Fund Based Facilities

In such type of facilities the bank provides only guarantee to the third party on behalf of its customers.

Types of Non-funded Credit Facilities

1. Letter of Credit 2. Letter of Guarantee

Letter of Credit
Letter of credit is type of non-funded facility. The bank only issues the letter in favor of its customer in case of import
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and exports. Four parties are involved in this system, Importer, Exporter, and Importers Bank, Exporters Bank. It can broadly be categorized into two categories; 1. Sight Letter of Credit 2. Usance Letter of Credit

Sight Letter of Credit

This a secured type of LC. In this type of credit the bank has to pay at the sight. The bank pays at the day, the shipment is arrived & documents are presented in the bank. When the goods are received, the bank takes these into its custody. These are not released until customer does not make the payment.

KASB

Usance Letter of Credit

This is also a type of LC, but the bank is not as secured in this case as in sight LC. The payment is not done immediately after receiving the documents. Goods are also not taken in the banks custody. The customer has only to show the documents of his goods that he has received. In Usance, Letter of Credit the payment is to be done on some pre-specified time. The purpose of this LC is that the customer makes payment after selling those

Goods in some time period. This time period should not be more than 180 days.

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This LC is an agreement that if the importer will not pay than the bank will have to pay instead of him after the specified time limit. If he does not pay, the customer is called defaulter from the day after the time limit has expired. And his property is taken under the banks custody.

Letter of Guarantee
Grantees issued by the bank are classified under two broad categories. A) Financial guarantee, where the bank guarantees the fulfillment of a financial commitment on behalf of customer and B) Performance guarantees, where the bank guarantees the performance of a contract or other work as specified in the guarantee. These categories can be further subdivided into the following types of guarantees.

KASB

1) Financial guarantees
Bid bonds, which are issued in lien of deposit of earnest money while bidding for a tender. Under these guarantees the bank is called upon to pay in the event of a breach of terms on the part of customer.

2) Performance guarantees
Under these guarantees, the bank guarantees due fulfillment of a contract undertaken by the customer. The amount of the guarantee is usually up to the extent of the value of the contract.

3) Shipping guarantees
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Under which the bank issues guarantees in favor of the shipping company to enable the importer to obtain delivery of the goods without production of the bill of Lading.

TYPE OF SECURITIES
Primary Securities Secondary/Collateral Securities

Primary Securities
Pledge is a formal contract of security whereby the goods/documents
are deposited with the creditor or lender on condition that they are redelivered to the depositor if the debt is repaid or can be sold if the borrower defaults. In this case, the lender has the right to retain the goods/document till the debt is paid.

KASB

Hypothecation the goods are kept as security with the Bank but
neither the ownership nor the possession is passed to the creditor. The ownership or possession of the goods remains with the borrower; however in case of defaults the Bank can take possession of the goods.

Lien (Moveable property possessed to the lender cannot be sold in

case of default).Lien is the bankers right to hold the property until the claim on the property is paid. The bankers look at their lien as a protection against loss on loan or overdraft or any other credit facility.
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In ordinary lien, the borrower remains the owner if the property, but the actual or constructive possession remains with the creditors, though he has no right to sell it.

Charge When immovable property of one person is made a security

for the payment of another person, and the transaction does not amount to a mortgage, the latter person is said to have a Charge on the property.

Secondary Securities
Mortgage is the transfer of an interest in specific immovable property
by the borrower (mortgager) to the lender (mortgage) as security for the payment of debt.

KASB

Personal Guarantee When an application for an advance can offer

any tangible security, the banker may rely on personal guarantees to protect himself against loss on advances or overdraft to the applicant.

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Working of the Credit Department

CREDIT PROCESS
There are Eight steps involved in the credit Process. First 4 Steps are relevant to the Credit Marketing and remaining are with the Credit Administration of the Department. 1. Customer Account is must for the Credit 2. Formal Loan/ Credit Facility Request 3. Verification and collection of basic information of the Borrower/Business.

KASB

4. Preparation of Credit Proposal 5. Approval from Credit committee. 6. Facility Offering 7. Acceptance of facility offered 8. Security perfection.

CREDIT MONITORING
The client can present his own account insurance policy as security for credit. When he presents his own account as security, his account is blocked for the same amount, which the bank is granting him. When the facility is adjusted at that time, the blocking is released from the account. Clients can also use third partys account for getting credit. Shares can also be kept as security in this case these are verified and duly signed. These are kept separate to avoid theft. The company whose shares are used is informed that its shares are in the custody of the bank.

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Consumer Department
KASB Bank allows financing to salaried persons, self-employed professionals and businessmen for meeting their personal, family and household needs through convenient payment schemes to suit their budgets. KASB Bank offers the following schemes:

KASB Shandar Car Financing KASB Shandar Consumer Financing KASB Shandar Personal Financing KASB Shandar Home Financing
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Documents You Need To Provide:

Following Documents are required for Car, Consumer and Personal Financing. Copy of National Identity Card Two passport size photographs Paid Copies of utility bills

Employment certificate (For Salaried Persons) Financial statement, company profile and copy of tax return (For business and self employed professionals)

KASB

Bank statement for last three months

You Can Apply If You Are:

A permanent resident of the city where KASB Bank has a branch. In possession of a National Identity Card.

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Between the age of 21 to 60 years (for Consumer Finance) and 21 to 55(For Car, personal and home Finance).

In business or continuously employed in a permanent position for 2 years (For Car, Consumer and personal finance) and 3 years or more (For Home Finance).

Having minimum take home income or salary of Rs. 20,000 per month (for Home & Car Finance) and 10,000 per month (for Consumer & Personal Finance). (Income of your spouse may be combined with your income to determine the repayment capacity.)

KASB

Maintaining a bank account with any bank.

KASB Shandar Car Financing

KASB Shandar Car Financing is the easiest means which enables you to get a new vehicle of your choice, suitable for your business and personal needs. Avail maximum advantages through convenient payment installments to suit your budget.

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Salient Features:
Financing up to Rs. 1,200,000/Financing period from 36 months to 60 months Comprehensive company Most economical monthly installment Simple documentation and quick approval insurance from reputable insurance

KASB Shandar Consumer Financing

You can now purchase electronic and household appliances of your choice through KASB Bank's Shandar Consumer Financing Scheme. Gain maximum advantages through our tailor made product for your convenience.

KASB

Salient Features:
Simple documentation. Quick approval Flexible repayment period from 6 months to 24 months.
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Economical installments to suit your budget. No processing fee. Free Credit Insurance Cover.

KASB Shandar Personal Financing

You may require funds for your emergent financial needs for meeting educational expenses, marriage or traveling expenses through KASB Shandar Personal Loan Scheme. You can avail the facility and can pay back within 24 months in affordable monthly installments.

Salient Features:
Financing from Rs. 20,000/- to Rs. 100,000/Financing period from 06 months to 24 months Free credit protection cover Most economical monthly installments
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Simple documentation and quick approval

KASB Shandar Home Financing

Buying or constructing a home is likely to be the biggest financial investment of your life! KASB Bank Shandar Home Financing Scheme is the easiest means which enables you to buy, build or renovate a bungalow, a townhouse or an apartment of your choice, suitable for you and your family needs. The facility is available at an affordable cost and convenient payment terms with the flexibility to match the individual's need and cash flow.

Salient Features:

Facility available for purchase, construction or renovation of your home.

KASB

Financing up to 70% of the cost of the house or an apartment or up to Rs. 7.5 million, whichever is lower.

Repayment period from 3 years to 15 years. Facility available at fixed or variable rates. Most economical monthly installments to suit your budget.
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Flexibility to pay off some or the entire mortgage at anytime, without any additional cost to the borrower.

Insurance of the borrower and the property during the period of financing will protect the investment from uncertainties.

Documents You Need To Provide:

Copy of National Identity Card. Two recent passport size photographs. Financial statements, company profile, copies of tax return and wealth statement for the last 2 years (for businessmen and self employed professionals). Employment certificate (for salaried persons) Photocopies of title documents of the property to be purchased, constructed or to be renovated. Bank Statements for last 6 months. Copies of last paid bills for telephone, gas and electricity.

KASB

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Copies of credit card bills for last three months.

Leasing
KASB Bank provides medium to long-term lease facilities to industrial, commercial and service organizations for expansion, balancing, modernization and replacement of existing facilities for: Industrial plants / machinery and equipments Construction / agricultural machinery and equipments Private and commercial vehicles

KASB

Medical, office and communication equipments Leasing is beneficial for the following reasons: Leasing frees working capital for more productive use Leasing arrangement is simple to negotiate and administer Leasing provides off balance sheet funding Lease rentals can be structured to accommodate the operational cash flow pattern of the lessee

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 Most expenses associated with the leased equipment can be incorporated in the lease and amortized over the lease period Leasing provides hedging against inflation

KASB Bank provides customized lease financing options on most competitive terms to suit the business needs of the lessee. Lease rentals can be uniform or structured and fixed according to the project requirements of the lessee. Our strength lies in quick completion of transactions. Our financing schemes are easy to understand and without any hidden costs. Our staff is professional and extremely customer friendly.

KASB

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RECOMMENDATIONS
From the quantum of the profit and its financial data, it can easily be judged that after acquisition of KASB BANK by the KASB Group, the Bank is not performing well. Its deposits are not growing day-byday and so its profitability. The controlling body is responsible for the productive performance of the bank. Following are my observations and suggestion to improve the efficiency for the development of the bank

1-Marketing Efforts

Bank must let potential customers know that all attractions for banking exist. This is done by advertising on television/ T.V. cable and obtaining press coverage, in conjunction with direct mail, window displays, leaflet in branches and in appropriate other locations (such as hotels, shops, etc.) and including leaflets in statement of accounts sent to existing customers in the hope that they will tell potential customers about the services provided by our bank.

KASB

2-Flexible Account Policy

There should be flexible account opening policy in which the account can be opened according to the customer willing-ness.

3-Reasonable Services Charges

There should be competitive services charges to preserve maximum deposits.
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4-Customer Service
There should be a separate customer service department in every branch.

5-New Consumer Products

Some personal sector customers prefer not to come to branch. They increasingly want to deal with the bank in other ways, such as home banking or use of Automated Teller Machines (ATMs), which need to be at the branch or some important shopping places. One way to retain the personal sector customers is to offer a wide range of services such as tax advice, free life insurance equivalent to amount Deposited, shares portfolio management, fund management facility, etc. complimentary to the core services. Banks must have a slightly different mix of services and mean of providing these such that customers can choose the mix that suits them best.

KASB

6-Advance Criteria
The advance should be on merit basis and there should be also new loaning modes as per demand and market trend.

7-Behavior Modification of Staff

Arguably, there has been a little encouragement from banks to persuade people to open a bank account. Opening hours are restricted, and there is a commonly held belief that banks operate for their convenience and not for the convenience of the customers. So
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there should be proper reward criteria to the bank branches about the maximum deposits.

8-Hiring of Talented Staff

KASB BANK should hire talented staff for improving the performance.

9-Proper Management of Banking Hours

There should be proper banking time management.

10-Change the Nature of Work

Most of the bank employees are sticking to one seat only with the result that they become master of one particular job and loose their grip on other banking operation. In my opinion all the employees should have regular job experience all out-look towards banking. Their promotion policy should be adjusted accordingly.

KASB

12-Refresher Courses
Refresher courses for the staff are most important in any international organization. All the employees should have these courses according to their requirement. Foreign experts can also be called for this purpose.

13-Incentive to Employees
Bank should give some more incentive to its employees in order to remove the conflict between lower and higher officers and should try to improve the working condition of the bank. Such system should be designed that every employee who has some problems with his
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officers can communicate to the higher management and some steps must be taken to improve that so that the employee may retaliate with bank for longer time.

14-Reward and Punishment

It is human nature one goes behind reward and incentives while and try to avoid from punishment. Like wise in commercial institution like bank, this system should be introduced with full force means achieve smart, educated skilled, self spoken and well versed staff personal, should be reward and appreciated, while on the other hand lazy, lethargic, heard, rough-dealers and ill mannered must be warned penalized and punished but this all should be on merit and considering the policy of honesty is the best policy and not due to some personal liking, disliking prejudice. It is therefore suggested certain schemes and checks may be introduced in banks to increase efficiency through reward and punishment system.

KASB

15-Survival Of The Fittest

It is not nearly a sentence or idiom Right Man for the Right Job according to his qualification, profession skills and experience with the job specification must be considered while posting and placing the employees. It should not be like that a person who may be a very good worker but possessing lack of managerial capabilities should be posted as manager. But as second place in command or some heavy working
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department wished persons together with managerial qualities and manners in the same fashion should be posted and placed as manager.

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