OPERATIONS MANAGEMENT

IMPLEMENTATION, ASSESSMENT & PRINCIPLES OF

OPERATIONS MANAGEMENT AT RBS

PROJECT REPORT SUBMITTED TO:

PROF. HUSSAIN SARDAR
CREDITS:
QASIM ALI (L1S09MBEX0043)
ABDUL HAFEEZ (L1S09MBEX0002)
AWAIS TARIQ (L1S09MBEX1040)
FAHEEM DURRANI (L1F08MBEX0012)
REHMAT ALI (L1S09MBEX2036)

Remarks:

Date: 3RD JUNE 2010

 DEDICATION

To those who yearn to learn...

 ACKNOWLEDGEMENT
All our gratitude for the Almighty, for all His
blessings and the knowledge that He has
bestowed upon us.
This project could not have been completed
without the unwavering guidance of prof.
Hussain Sardar.
Last but not least, we would like to extend
our profound gratitude to our friends and
families, whose faith in our abilities make us
all the more strong.
Thank you all!
 TABLE OF CONTENTS:

1. DEDICATION

2. ACKNOWLEDGEMENT

3. VISION & MISSION

4. INTRODUCTION
5. RBS IN PAKISTAN
6. COREPORATE VALUES
7. ORGANIZATIONAL STRUCTURE
8. RBS PRODUCTS/ SERVICES IN PAKISTAN
9. DEPARTMENTS
10. SWOT ANALYSIS
11. SERVICES PROVIDED IN ROYAL PREFERRED BANKING/GENERAL
BANKING
12. OPERATIONS, DUTIES
13. AND RESPONSIBILITIES OF DIFFERENT DEPARTMENTS
14. OPERATIONS SCENARIOS
15. SUPLY CHAIN CONCEPT
16. SURVEY
17. RECOMMENDATIONS
18. CONCLUSION
19. QUESTIONNAIRES
 VISION OF RBS
“Be the leading bank delivering world class services to our clients”.
 MISSION OF RBS
“Create value for our stakeholders by delivering global standards for banking in Pakistan”.
 INTRODUCTION

The Royal Bank of Scotland Group has grown from small beginnings nearly 300 years ago to
become the second largest financial services group by profit, in the world. RBS is one of the
world's top 10 financial services groups and a leading provider of personal, business and
institutional banking services. It operates 4,000 branches and offices in more than 50
countries and has 168,000 employees worldwide. With an AA credit rating, RBS group has
more than 40 million customers worldwide, operating profit in 2007 ₤10.3 billion, and total
assets, as at 31 December 2007, of GBP 1,900.5 billion. Our brands operate around the globe
and down your street to provide banking services for individuals, businesses and institutions.
Proud of our history, we remain committed to innovation and service - in business and
through our many sponsorship activities.

RBS is one of the oldest banks in the United Kingdom (UK). Following the takeover of
National Westminster Bank in 2000, the Group has continued to grow its business around the
globe and, in addition to its strong UK presence, it has offices in Europe, the United States of
America and Asia. By the end of 2002, it was the second largest bank in Europe and the fifth
largest in the world by market capitalization.

RBS was founded in Edinburgh, by royal charter, in 1727. It opened its first branch in
Glasgow in 1783 and developed a large network of offices throughout Scotland during the
nineteenth century. In 1874 it opened a branch office in London and from the 1920s
developed, by acquisition, a major presence in England. By 1970, following the Royal Bank's
merger with the Edinburgh-based National Commercial Bank of Scotland, comprising the
former National Bank of Scotland (established 1825) and Commercial Bank of Scotland
(established 1810), it enjoyed over forty per cent of Scotland's banking business. Under the
Williams & Glyn's Bank banner, it also boasted a large and growing presence in England and
Wales. In 1985 Williams & Glyn's merged fully with the Group's Scottish clearing bank
which thereafter traded throughout Britain as a single entity, The Royal Bank of Scotland.

During the 1980s the Group diversified, setting up an innovative car insurance company.
During the early 1990s the Royal Bank refocused on its core business of retail banking. In
2000 the Royal Bank acquired National Westminster Bank which was the biggest takeover in
the history of British banking. Now in 2008 RBS took over Aljameen Bank of Netherland,
Amstardamsche Rotterdamsche (ABN AMRO), which is considered the number one bank in
Asia.
 RBS IN PAKISTAN
As a result of worldwide acquisition of ABN AMRO by consortium (RBS, Santender &
Fortis), ABN AMRO Bank Pakistan Ltd has been successfully re-branded to The Royal Bank
of Scotland on 1st August, 2008. Committed to Pakistan since 1948, ABN AMRO Pakistan
(now RBS) has a strong commercial banking presence as well as an established retail
franchise which offers a complete product suite. The bank is a leader in product innovation in
the local market and is represented in key financial and government policy forums in the
country. With assets of PRK 124 billion, about 5,000 employees and over 80 branches in 24
cities, this entity is the second largest foreign bank and one of Pakistan's top 10 banks in a
rapidly growing market.

RBS Pakistan offers products in areas like Deposits, Saving and currents accounts, cash and
check deposits, and loan facilities. Not only this, but it is also offering products as: Balance
Transfer Facility (BTF) which in banking terminology is One Stop Payment Shop, 24 hour
nonstop banking centre, relationship card through which customer can access to over 1000
ATMs, life insurance protection, E statements through which you can receive your BTF via
email, Drop box facility- the convenience of dropping of your payments at any of the drop
boxes placed outside RBS.
RBS operates in the following cities of Pakistan:

Sr. # City Sr. # City

1 Karachi 13 Sargodha
2 Lahore 14 Gujranwala
3 Islamabad 15 Vehari
4 Peshawar 16 Jehlum
5 Quetta 17 DG Khan
6 Rawalpindi 18 Turbat
7 Faisalabad 19 Sukkur
8 Multan 20 Mardan
9 Sialkot 21 Gojar Khan
10 Hyderabad 22 Kharian
11 Gujrat 23 Bhalwal
12 Mir Pur (AJK) 24 Bhawalpur
 CORPORATE VALUES

CUSTOMER FOCUSED
We respect and depend on each other for success by working as collaborative team.

TEAM ORIENTED
We are unrelenting in our focus on customers relationship and our customers’ success.

PERFORMANCE DRIVEN
Results matter. We have a burning desire to succeed. To “Make It Happen”.

ENTREPRENEURIAL
We thrive on being innovative in our approach to business.
 ORGANIZATIONAL STRUCTURE
The Chart, shown below, illustrates the RBS Pakistan organizational hierarchy.

The RBS management includes four country heads of major business areas. The corporate
and commercial country heads have three regional heads to manage their geographical
regional activities. Currently Islamic banking, GB/RBP is not headed at regional level rather
areas managers directly report to their country managers.
Geographical Distribution

RBS Pakistan has divided the whole country into three geographical regions – North, Central,
and South. Diagram below shows the geographical distribution.

The three geographical regions cover the following areas of the country.

North Region

The north region includes Rawalpindi Division, Khybar Pakhtoonkha (NWFP), and AJK.

Central Region

The whole Punjab province except Rawalpindi division falls in this region.

South Region

This area incorporates Sindh and Balochistan provinces.

Chain of Command

The Chain of command shows the order of who reports to whom. The RBS chain of
command includes about ten levels, as shown in figure.

RBS PRODUCTS / SERVICES IN PAKISTAN

RBS is an international bank with strong local footprints. Our in-depth knowledge of the
markets in which we operate gives us the scope and global expertise to meet the banking
needs of our clients. Similar to operations in other markets, our focus in Pakistan is on the
mid-market. This is where we best utilize the strategic advantage brought about by our
particular combination of clients, products and geographical markets. We target consumer
and commercial clients in our local markets, and globally we service selected multinational
corporations and financial institutions with a diversified range of innovative products.

Currently RBS provides services / products in five areas, illustrated below in a diagram.

RBS Pakistan Business Areas

PRODUCTS / SERVICES OFFERED

RBS is an international bank with strong local footprints. Our in-depth knowledge of the
markets in which we operate gives us the scope and global expertise to meet the banking
needs of our clients. Similar to operations in other markets, our focus in Pakistan is on the
mid-market. This is where we best utilize the strategic advantage brought about by our
particular combination of clients, products and geographical markets. We target consumer
and commercial clients in our local markets, and globally we service selected multinational
corporations and financial institutions with a diversified range of innovative products.
GLOBAL BANKING & MARKETS

We offer you a deep knowledge of the Pakistan market with our network of branches in
Karachi, Lahore, Islamabad and Rawalpindi. We have strong relationships with financial
institutions, public sector clients and corporations across many sectors. Our team of
experienced bankers take pride in achieving a clear understanding of your needs.

We unite local expertise, an extensive network of global contacts and a worldwide

distribution platform to deliver a full spectrum of products and services including:

• Financial markets
• Transaction banking
• Financial advisory
• Mergers and acquisitions
• Shariah-compliant products.

COMMERCIAL BANKING

Our full range of award-winning, innovative solutions and services are among the most
comprehensive in the world and will help you to better manage, as well as grow, your
personal and business wealth locally, regionally and globally.

• Cash Management
• Trade Services & Supply Chain
• Finance
• Foreign Exchange

CONSUMER BANKING

Following services are available to general consumers:

DEPOSITS

Whether to achieve a specific financial goal or to simply get the best returns on your money,
our Deposit Accounts are designed to meet your financial needs and help you realize your
aspirations. We offer five types of accounts:

• Access Account
• Anchor Account
• Classic Account
• Service Account
• Value Term Account
LOANS

Our Loan Products extend financial flexibility to you without inconvenience or strain. Our
Loan products enable you to achieve easy liquidity. Choose from a diverse array of products
specially tailored to meet your needs.

• Balance Transfer Facility

• Home Finance
• Loan Against Shares

CREDIT CARDS

• Power Prestige Platinum

• RBS mc2 Credit Card
• RBS Ufone Credit Card
• RBS airblue Master Card

INSURANCE

Our pursuit to deliver the excellence in service covers the important aspect of your security,
which is the need of the hour. Given this, we extend our full support by offering wide-range
of insurance Products, which are designed keeping in mind individual’s limitations and
priorities. We believe these products will address all your personal and financial concerns,
now the choice lies with you to select the product that suits your lifestyle.

• Young Professionals
• Just Married
• Married with Kids
• Nearing Retirement

RELATIONSHIP PRIVILEGE
At RBS, we endeavour to make your banking experience memorable and enjoyable. We are
not just your bank, but your business partner as well. It is our unique commitment to absolute
service excellence that drives us forward. Our global strength enables us to provide YOU, our
valued customer, a complete range of financial products and expertise.

• Evening Banking 9am-7pm

• Customer Interaction Center
• Our ATM Network
• Debit Card
• Bill Payment
• Drop Box Facility
• E-Statement
• SMS banking

Business First

A world of banking solutions with your business as our priority. At RBS, we understand that
as your business grows, so do your challenges and specific banking needs. Business First
gives you the transactional solutions and support you need to drive your business forward
while facilitating your evolving personal and lifestyle needs. A dedicated Relationship
Manager, committed to your financial success, will guide you through a host of products and
services conveniently packaged for you to enjoy.

Royal Preferred Banking Products

The RBS Royal Preferred Banking experience reflects your status, offers solutions that meet
your changing needs and gives you the power to take complete charge. RBS Royal
Preferred Banking believes in premier service delivery and going an extra mile to bring
superior standards that our clients can truly appreciate. The RBS Royal Preferred
Banking brand goes beyond financial solutions and aims to offer clients a privileged
lifestyle which they can truly value and associate with. Following products are
available:

• Deposits
• Loans
• Credit Cards
• Insurance
Islamic Banking Products / Services

The emergence of our RBS Islamic banking has made banking easier for customers interested
in financial products and services which are in harmony with their religious beliefs.
RBS understands the needs of our local communities and our Islamic brand is able to
meet customers' desire for Shariah Compliant Solutions.

RBS Islamic Banking believes in providing premier service delivery and standards that our
clients can truly appreciate. We go beyond financial solutions and aim to offer clients a
privileged lifestyle which they can truly value and associate with. In our endeavor to provide
the customers with products and services that suit their needs, we have team of professionals
with Islamic finance expertise dedicated to developing Shariah approved financial solutions.

Islamic Banking Products

• Consumer Products

- Deposits

- Home Finance

- Car Financing

• Commercial Products

- Working Capital financing

- Trade Financing

Islamic Banking Services

• The RBS Islamic Debit Card

• The ATM Network

• Customer Interaction Centre

• Drop Box Facility

• E-Statement

• Lockers
DEPARTMENTS

Regional Office

The regional office is the head office of a geographical region, and holds generally the
following departments.
Corporate Head

Corporate head deals with corporate customers in the whole region.

Commercial Head

Commercial head deals with commercial operation in the whole (central) region.

Admin Head

The admin department is responsible for administration of branches and employees, and
security.

Business School provides trainings on

• Orientation
• Sales
• Ethics
• Quality
• Services
• Compliance

Business Quality Department Ensures

• Cleanliness in branches
• TAITS i.e. time taken to deliver services per customer
• Maintenance of branches
• Security System
• Audit
• FOBO i.e. Front Office and Back Office

Central Processing Unit performs

• Processing of all types of services delivered at branches like checks, deposits, bank
transfers
IT Department is responsible for

• Handling ATM machines and communication links

• Maintenance of computers and software problems etc.

SWOT ANALYSIS

Strengths

1. RBS is the first multinational bank which has started the concept of Islamic banking
and so rapidly expanded its products of Islamic banking. The launching of Islamic
credit cards and auto financing on basis of Mudarabah is expected to provide positive
growth opportunities to the bank.
2. RBS has expanded the network of its branches in a very short period of time. It started
with eight branches in major cities of Pakistan but now it has seventy five in various
cities of Pakistan
3. One of the plus points of RBS is that it has very tight policies based on foreign and
State Bank mandate, which makes it better than Pakistani local banks.
4. RBS has one special department by name of Fraud Risk Management (FRM). The
staff of FRM verifies the customers at various stages in order to reduce the occurrence
of fraud in bank.
5. RBS provides best service to the customers by taking care of their needs.
6. The bank gives too much importance to its customers. On the main entrance of bank
there is special greeter desk which is responsible to properly guide the customer.
Normally two to four staff members are available to help the new customer any time.
7. The concept of non stop banking (NSBC) introduced by the bank is very positive by
providing 24 hours service to the customers. Also the SMS banking is better than
other banks of Pakistan.
 8. All the departments of the bank follow the policy of KYC that is “Know Your
Customer.” According to this policy the bank staff knows its customers fully from
his / her business to daily activities so that they do not fall a pray to illegal activities.
9. A very positive point of this bank is that it gives separate status to high profile
customers. For example the customers who have account worth of more than 1
million are treated specially. Bank has a separate department and dealing section for
such customers which is known as RPB and customers are called Royal Preferred
Customers. These customers have access to luxurious and well decorated waiting
areas where they can enjoy reading newspapers, magazines, watching television and
using internet.
10. On the whole employees are satisfied with the bank and its environment and have
high salary structure than the other banks.
11. RBS has a very strong management who is always ready to take strict actions and
wise decisions during the bad conditions.
12. The bank has a strong presence in emerging markets, putting it in a good position to
take advantage of future growth in those economies.
13. The bank’s global presence in Europe, Asia and South America helps to spread risk
and offers significant economies of scale.
14. The opening of several new flagship branches along with a refurbishment program
can be seen as an attempt to refocus on customer demands for a strong presence on
the high street

Weaknesses

1. It is very much true that RBS considers its customer a great asset but sometimes it is
not able to satisfy them. The main problem is with ATMs mostly the customers get
annoyed but the bank employees do not take this problem seriously.
2. RBS’s branding emphasizes its global presence, and this may be seen negatively by
some customers in its implication of homogenization and lack of personalization.
3. Division of work and description of job is not properly defined to each and every staff
member
4. There is lack of proper rotation among the departments, which leads to limited
knowledge among employees.
5. Sometime the customers feel dissatisfied and complaints that bank does not clearly
mentions the terms and conditions on various products like deduction of service
charges. Mostly credit card holders come up with such complaints.
6. Many of the banks employees are not loyal with it. They just leave the job in search of
better job opportunities to other banks.
7. Sometimes the customers are not informed before time about the certain changes
being going in the bank; regarding banking products or changing the name or
structure of the bank, which creates confusion in minds of the customers.
8. RBS associates itself strongly with investment in the small business sector, but the
current economic situation has led to increased risks, potentially compromising the
activity levels in this area of the operation.
9. The bank was involved with sub-prime markets in the US and has had to write off
large figures lent to high-risk borrowers.
 10. A redundancy program announced recently may affect morale among staff, leading to
decreased production and loyalty.
11. Employees on the floor who have direct dealing with the customers, many times, feel
frustrated without any break during the work schedule.
12. RBS brand image is not so strong in the Pakistani markets.
13. Shortage of staff and lack of motivation also persist.

Opportunities

1. The bank’s strategy is to offer a full portfolio of services worldwide, providing a wide
range of cross-selling opportunities.
2. The bank’s strategy is to offer a full portfolio of services worldwide, providing a wide
range of cross-selling opportunities.
3. As employees have the habit of working with ABN AMRO, but now with RBS take
over there are chances of further growth in productivity of employees and improved
banking environment.
4. RBS has started NSBC there is opportunity of growth in this field.
5. There are growth trends in Islamic Banking sector of Pakistan which will further
enhance the working condition of Islamic banking in near future.
6. RBS’s high level of capitalization places it in a strong position to acquire assets Banks
finding trading conditions particularly difficult at present may be available at low
cost.
7. RBS’s generally strong position presents the opportunity to outperform competitors
during the economic downturn and to build a reputation for being one of the safer
banks for depositors, helping to increase resources for lending.
8. The growing interest of peoples in derivative and foreign exchange market
9. Recovery of Pakistani stock market
10. More Emphasis on IT infrastructure

Threats

1. Due to present government and the instability of the policies RBS may face a lot of
problems in future.
2. Religious class emerging from the Pakistani society, which hates working with the
foreign banks and prefers local banks, can disturb the working of the bank in future.
3. Due to devaluation of Pakistani currency, bank may earn less profit than its other
foreign branches.
4. The employees are not loyal with the bank, when they find better opportunities they
leave their existing posts so it can create the problem of recruiting new staff for
Human Resource Department.
5. Many new and emerging banks like Barclays are offering better pay packages to the
employees which in future may increase the turnover of employees.
6. Trust in banks has decreased due to financial losses suffered by investors, who may
be more inclined to invest elsewhere.
 7. Financial losses affecting banks and investors on a global scale have resulted in less
credit being available to customers. In the UK this is coupled with increases in living
costs resulting in less money being saved.
8. The falling property market has created a rise in numbers of homeowners with
negative equity. If a property is worth less than was borrowed to finance its purchase,
there is little likelihood that the bank will recoup all its losses if owners default.
9. Claims have been made that RBS has understated losses resulting from US sub-prime
markets, and this could undermine confidence in the bank.
10. The Asia expansion is seen as risky given that RBS are in a less strong position than
banking industry leaders regarding capitalization, and this may detract investors.
11. Competition from major players HSBC, SCB, MCB
12. The downfall in the export market due to global recession
13. Speculation in derivative market

Conclusion

The biggest strength of RBS is that it is the first multinational bank which has started the
concept of Islamic banking. It enjoys better position than the other banks of Pakistan because
world wide it is at number five with respect to its assets The department of FRM is giving
good results as compared to other banks of Pakistan. The main weaknesses are that some of
its branches have not even started its operations so they should be in the working condition,
lack of proper rotation among the departments and customers dissatisfaction arising about
changes going on in bank. But the bank has opportunity of growth in Islamic Banking sector.
On the other hand the biggest threat is the instable economic position of Pakistan and the
depreciation of Pakistani rupee by which it will earn less profit than its other foreign
branches.
SERVICES PROVIDED IN ROYAL PREFERRED BANKING/GENERAL BANKING

DEPOSIT

Whether to achieve a specific financial goal or to simply get the best returns on your money,
our Deposit Accounts are designed to meet your financial needs and help you realize your
aspirations.

Access Account
Access Account opens doors to a new checking account with swift turn-around times, ideal
for traders and businesses with considerable daily transactional needs.

Anchor Account
Anchor Account promises to deliver the highest service quality standards along with the
benefit of banking convenience and privilege of our Relationship Banking.

Classic Account
Classic Account is the ideal solution for individuals looking for maximum returns while
maintaining their day to day transactional needs. Your profits are calculated on a daily basis
ensuring that you get the most out of your deposits.

Service Account
With a smart blend of ever increasing local proximity backed by strong global expertise, our
Service Account offers you convenience, flexibility and round the clock access to your
funds.

Value Term Account

For those seeking great returns with great service, our Value Term Account has all the
answers.
Our deposit products unfold a world of relationship privileges that complement your banking
experience by adding an enjoyable and classy touch.

LOAN

Our Loan Products extend financial flexibility to you without inconvenience or strain. Our
Loan products enable you to achieve easy liquidity. Choose from a diverse array of products
specially tailored to meet your needs.

Balance Transfer Facility (BTF)

We believe life should be spent enjoying in the rain - not saving up for it. Our BTF now lets
you enjoy yourself while we take care of all your rainy days. BTF is your personal line of
credit, quick money when and where you want it!

Home Finance
Your dream home is now within your reach. Our Home Finance Loans will help you fulfill
your dreams. You can be a Home Builder , Home Buyer , Home Lender or require
Refinancing for your home, we cater to all your financing needs to make your dream a
reality.

Loan Against Shares (LAS)

Loan Against Shares facility enables you to take a loan against the shares invested in
companies listed on the KSE-100 index and release the initial investment at its current market
value. Get more than just dividends - get the competitive edge with Loan Against Shares.

We present to you Pakistan’s first mc2 Card - stylishly different in shape.

Unique Shape

mc2 refers to the new shape of your card- the shape of new things to come!

Smart Chip, Smart Technology, Smart Card

The RBS mc2 Credit Card has a smart chip embedded in its surface, making it a safer way to
spend.

Multiple Credit Cards*

If you are already an RBS Credit Cardholder, you are also eligible to apply for the RBS mc2
Credit Card. Your overall credit limit will be shared amongst all your Credit Cards.

* Terms and Conditions apply

MasterCard - Global Reach and Acceptability

The RBS mc2 Credit Card carries the logo ensuring worldwide acceptability at more
than 24 million establishments in over 210 countries including thousands of locations in
Pakistan, displaying the , and logo.

Cash Advance Facility*

The RBS mc2 Credit Card comes with a Cash Advance Facility
of up to 50%* of your credit limit so you will never be in a credit crunch for cash! Use any of
our ATMs displaying , and logo to avail this facility.

*Terms and Conditions apply

Installment Plan

The Installment Plan offers you convenience and flexibility! The features include:

• 0% mark-up on 6 to 18 month installment plans*

• Affordable mark-up rate of 2% per month
• Balance repayable in 6-60 months (multiples of 6)
• Balance transfer from other Credit Cards (minimum of PKR 5,000)
• Dial-a-draft (Pay order of a minimum of PKR 5000)
• Retail transactions of any type worth PKR 5000 or more

*Applicable only on selective products communicated to you from time to time.

Supplementary Cards

You can now empower your loved ones with the convenience of a Credit Card. RBS mc2
Credit Card customers can have up to 5 Supplementary Cards for persons aged 18 and above.
Exciting Discounts

Take advantage of fabulous discounts and privileges with leading brands and service
providers.

Instant Reward Redemption

Earn 1 Reward Point for every PKR 50 you spend and simply visit a redemption partner
outlet to use your accumulated Reward Points for your purchases.

Insurance Cover

The RBS mc2 Credit Card offers you a variety of safety and coverage features.

Value-added Services

Your RBS mc2 Credit Card brings you value-added services aimed to provide convenience
and banking at your finger tips by calling our Customer Interaction.

INSURANCE

Our pursuit to deliver the excellence in service covers the important aspect of your security,
which is the need of the hour. Given this, we extend our full support by offering wide-range
of Bancassurance Products, which are designed keeping in mind individual’s limitations and
priorities. We believe these products will address all your personal and financial concerns,
now the choice lies with you to select the product that suits your lifestyle. To learn more
about the product offerings, browse through various life cycles illustrated below:

Young Professional Just Married

Married with kids Nearing Retirement

Relationship privileges

At RBS, we endeavour to make your banking experience memorable and enjoyable. We are
not just your bank, but your business partner as well. It is our unique commitment to absolute
service excellence that drives us forward. Our global strength enables us to provide YOU, our
valued customer, a complete range of financial products and expertise.

The banking experience provided by RBS reflects your status and offers solutions that meet
your changing needs. The warmth of personalized attention transforms routine banking
transactions into memorable experiences.

At RBS, all your needs are met, through a true Relationship of Service.

Evening Banking 9am-7pm

RBS introduces Evening Banking services till 7pm, Monday to Friday.
Now you can visit our branches even after 5 pm. No need to rush to the bank, we work late to
ensure that your banking needs are met without any hassle.

Customer Interaction Centre

Total accessibility and convenience through our phone banking service with integrated
Interactive Voice Response (IVR) systems in English or Urdu, 24 hours a day, 7 days a week.

Our ATM Network

You can operate your accounts from any RBS branch in the world, or through our 24-hours
ATMs. Our ATM Network is multi purpose enabling you to transfer funds, withdraw cash or
simply check your balance.
Debit Card
Debit Card is an innovative spending tool. It's an extension of your Relationship Card and
functions as a complete replacement for cash.

Bill Payments
Enjoy the comfort of paying your bills from home or work without having to visit the bank.
No more delays or late payments.

Drop Box Facility

Cheque deposit and loan repayments have never been easier. Simply drop a Cheque into 98
Drop box locations country wide at all branches, offsite and Fuel Stations.

E-statements
Convenience is just a click away. Now, with RBS, you can receive your statements on your
e-mail. Which means, no paperwork to keep track of your transactions. Just access your
personal e-mail account, whenever it's convenient.

SMS Banking
Experience the convenience of command banking on your fingertips. You can now receive
real time SMS alerts on all your transactions for

• Credit Card.
• Current and Saving account.
• SMS Alert Promotion Winner.

Lockers
If your jewelry has been giving you sleepless nights, and the prize bonds tucked in the bottom
drawer make you feel tensed, it's time to discover a peace of mind.

Business first.
A world of banking solutions with your business as our priority

At RBS, we understand that as your business grows, so do your challenges and specific
banking needs. Business First gives you the transactional solutions and support you need to
drive your business forward while facilitating your evolving personal and lifestyle needs.

A dedicated Relationship Manager, committed to your financial success, will guide you
through a host of products and services conveniently packaged for you to enjoy.
 OPERATIONS, DUTIES
AND RESPONSIBILITIES OF DIFFERENT
DEPARTMENTS

Receiving Teller's Department (Teller)

Receives, receipts for and proves deposits, distributes checks to bookkeepers and other
departments, prepares exchanges for clearing houses, and turns cash over to the paying
teller at end of day.

Transit Department (Teller)

The transit department may be a subdivision of the receiving teller's department and was
formerly known by other terms, such as correspondence, foreign check, miscellaneous check
or country check department. This department assorts checks and other cash items payable out of
town, indorses them and lists them on letters addressed to other banks. t gives totals of outgoing
or remittance letters to general ledger bookkeeper at end of day This department often keeps
the records of exchange charged on out-of-town checks, and of delayed credits on interest
balances made necessary because of uncollected funds deposited.

Paying Teller's Department (Teller)

Pays or certifies cheque s, is in charge of the signature book or cards bearing the authorized
signatures of all depositors , ships currency, is in charge of the vault cash, and makes up
payrolls.

Note Teller's Department (Teller)

Collects notes and drafts due at the bank or elsewhere in the city. It is usually in charge of the
runners or messenger department, which is a subdivision, and it usually receives deposits
made by oth er banks, and may perform the functions of a mail teller.

Collection Department (Teller)

Collects notes, dr afts and other "time" items when payable out of town, and credits accou nts
of depositors when collections are advised paid.

Loan or Discount Department (Executi ve)

Receives notes submitted for discount or makes loans, figures discou nt and interest, and has
charge of collateral securing loans.

Credit Department ( Executive)

Secures and collects information relating to borrowers, checks statem ents sub mitted by
them, and is in charge of credit files, which contain information as to thei r liability, b usiness
habits and financial strength of borrowers.

Analysis or Statistical Department (Executive)

This department is usually found in city banks. It analyzes the accounts of depositors to
determine which are profitable and which are losing accounts, makes monthly reports to
officers, is in charge of statistics relating to the bank's accounts and matters in which the bank is
particularly interested. It is closely related to the transit department.

General Ledger Department (Bookkeepers)

Keeps the general or control accounts of the bank, and makes up the bank's statement of
condition.

Country Bank Account Department (Bookkeepers)

This department is confined to city banks. It keeps the accounts of other banks.
Individual Ledger Department (Bookkeepers)
Keeps the records of the balances of individual depositors and figures interest on accounts.
It may be subdivided as to kind of accounts (savings, dealers), in addition to ordinary
alphabetical division, and may balance pass books or there may be a separate department for
this purpose using the statement system.

Auditor's Department (Executive)

This department is responsible for the settlement of the various departments, reconciles the
accounts with other banks, and certifies interest calculations.
In addition to these departments, there are others to be found either in very large banks or even in
small banks operating special features. Among the first might be noted the coupon department,
exchange department, purchasing department, filing department, interest departm ent, new
business department, etc., all of which terms are self-explanatory. Among speci al
departments may be mentioned the foreign exchange department, the bond department, safety
deposit department, special deposit department (securities and valuables store d with the bank,
but not placed in private boxes). In trust companies there is the trust departmen t, which may
have a complete independent organization of its own, with officers, bookkeepers and other clerks.
This department has charge of the trust accounts.
 OPERATIONS SCENARIOS

Cash Deposit

The operation involved in cash deposit both at front end and back end is described below.

Front End

• Greeter at help desk welcomes the customer

• Helps in filling the deposit slip

• Greeter deposits cash at cash centre and

• Gives receipt back to the customer

Back End

• The deposit slip and cash are collected at cash counter

• Verification of account number and branch etc.

• Entry is made in account online

• Authorizer authorizes the entry and account is updated

Check Clearance

The operation involved in check clearance both at front end and back end is described below.

Front End

• Greeter at help desk welcomes the customer

• Helps in filling the check

• Greeter submits check at respective counter and

• Brings money to the customer

Back End

• The check is collected at counter

• Verification of account number, signature, amount, and branch etc.

• Entry is made in account and money is paid

• In case of large amount i.e. Rs.50, 000 and above, a compliance cal to the account
holder is made, before check clearance, for verification.

• Check clearance process may take 2 or 3 days for cross checks

 SUPPLY CHAIN CONCEPT
All these activities are done by operations department which are involved in daily day to day
operations of a branch and all activities are to be done in a process through supply chain
directly or indirectly. Let suppose a customer deposit a cheque of MCB Bank Ltd. for Rs:
100,000/- in his account.

In the above diagram we see how a cheque of Rs:100,000/- is to be collected by RBS from
MCB Bank Ltd.

This diagram shows a complete supply chain process that one organization is linked with
other organization through different channels. The process is started when the customer
deposit the cheque in his account and bank start a procedure to collect the funds from MCB
Bank Ltd. And for this purpose the cheque is lodged in local clearing. The clearing process is
done by RBS through NIFT (National Institute of facilitation technology). NIFT is basically a
private organization work under State Bank of Pakistan and provide courier services to
banking channels. The cheque is collected by NIFT rider and delivered to NIFT processing
unit. The processing units process the cheque and pass necessary entries and further
delivered to SBP. SBP debit the amount of cheque from MCB main account and again
delivered to NIFT courier service who present the cheque to MCB counter for clearance. The
bank officer scrutinized the cheque if in order clear the cheque and delivered the report to
NIFT rider, who submit this report to NIFT and at last after receiving the clearance report
SBP credit the proceeds of cheque to RBS main account. In all this process physically cash
has not been transferred from one bank to another bank. Only funds has been transferred
from one bank to another bank And the standard time to collect this cheque as required by
SBP is 24 hours this also cover JIT process.

JIT in the process of cash transaction

• Customer enter into the bank

• Greeter greets the customer and gives assistance
• Customer takes the token.
• Present cheque for Cash withdrawal
• Cashier proceed the cheque
• Customer take money
• Leave the counter

JIT (Just in process) is also one of the processes involved in the operations of the bank
considering turn around time of a transaction. We take an example of a customer who
presents cheque for cash withdrawal. The cashier time for payment of cheque is start when
customer takes token and present cheque for payment at counter. The standard time for
payment of a cheque is 2 to 3 minutes. All the internal process for payment of this cheque is
required to done with the time limit and this turn around time is monitored by quality
assurance department through surprised visit of branch and cheque the token report showing
the flow of customer call after 2 to 3 minutes.

Quality Assurance

The working of quality assurance to ensure the implementation of standard policies &
procedures, it emphasis on
 • Quality of Work
• Implementation of Procedures
• To check internal control
• To check organization environment
• To Check Turn around time of a transaction
• Make policies for better services to customer

This is the department basically which ensures the implementation of JIT in RBS. This
department ensures that all the banking processes are completed in time and the standard of
all such operations is up to the mark.

QUESTIONAIRE/SURVEY
We conducted a questionaire/survey in RBS to find out the level of satisfaction of customers
as well as employees. The objective of this survey was to get an idea of how effectively
operations are being carried out in RBS. The level of satisfaction or dissatisfaction indicates
the effective and efficient carrying out of operations at the bank, thus this survey helped us in
developing a sound conclusion.
ANALYSIS

The high percentage of customer as well as employee satisfaction is evident from the above
mentioned graphs. This clearly shows that how good operations are being managed at RBS.
The policies are well defined and well executed, strict checks and balances system exists.
Emphasis is given on maintaining the standards and continuously improving them. This in
turn is ensuring the strong customer employee relationship.

Still there exist a few weak areas which need to be given more attention both on customer as
well as employee side.
 RECOMMENDATIONS
Here are some recommendations for RBS that will, ultimately, lead to improvements in
services, operations, and both employees and customers satisfaction.

Improvement of ATM’s
There is need to improve the existing condition of ATMs because it disturbs the working
environment of the bank, when customers show their dissatisfaction regarding the problem of
link down with ATMs. RBS should improve the situation by taking the following steps:
• Increase the number of ATM machines
• ATMs should be serviced regularly each month instead of every four months, for
keeping them in proper order.

Keeping ATMs in proper working is not the hard task for the bank because by this the bank
will earn appreciation from their regular customers and the rush of customers can be reduced
from the counters. For this the manager of the department should employ a separate person
for keeping the check on these machines.

Informing the customers before time

As we have seen in the weaknesses that RBS customers are not properly informed well
before time in case of any change, so they should be kept in contact with the bank in case of
the following situations:
• Launching of new products
• Changing the name of the products
• Changes in bank rules and policies
• Shifting of departments

Clear information of any product

Another thing about Customer Service Department is that it should give clear cut information
of any product to the existing or potential customers for creating the air of trust between bank
staff and the customers. Information given should not be ambiguous. In some cases bank’s
staff hides the actual information especially in case of marketing of new products the sales
people exaggerate the benefits of their products, in this way hiding the reality.
The manager of this department should apply strict rules for sales / marketing staff. Some of
the measures are as:
• Salary deduction
• Commission or incentives elimination
• Firing of such sales members so that other members learn some lesson
• Promotion efficient sale personals, having wide customers range.

Promotion and Job rotation

In Customer Services department the rate of promotion is quite slow as compared to any
other banks department. This recommendation can be implemented in the long. The
Customer Service Department is lacking cross departmental promotions. The survey also
shows that the employees are not satisfied with rate of promotion. They want quick
promotions or at least cross departmental ones. The employees should be promoted within the
department so that they work well.
Cross departmental promotion will be very helpful for employees because:
• It will enhance the knowledge of employees.
• Create the feeling of hard work

Training and Job Description

RBS should focus on training employees to improve their working skill, job knowledge,
motivation, ethics, commitment, and about new products / services. Moreover a problem of
unclear job description also persist, this problem should be minimized.

Quality and Just In Time

There is always a room for improvements for every organization; a more focus on quality and
just in time should be plasticized.

Improve Brand Image

RBS brand image is not sold in Pakistan where it stands in world top banking institutions. It
should foster efforts to position it to a higher level and its brand image.
 CONCLUSION
RBS has a very strong position in Asia. In Pakistan it has more than eighty branches. It is
known as one of the best customer service providers with focus on the high profile business
persons.
In Islamic banking it is one of the first foreign banks to launch Islamic products. It has a
bright future ahead. The Islamic Mortgage Department is working on launching various
products, although its products range can not be compared with the competitors but one can
predict that in future a wide variety of RBS products will be covering the market. The
Customer Service Department is one of the best departments in the whole bank, offering
products in areas like Deposits, Saving and currents accounts, cash and cheque deposits, and
loan facilities. Not only this, it is also offering products as: Balance Transfer Facility (BTF)
which in banking terminology is One Stop Payment Shop, 24 hour nonstop banking centre,
relationship card through which customer can access to over 1000 ATMs, life insurance
protection, E statements through which you can receive your BTF via email, Drop box
facility- the convenience of dropping of your payments at any of the drop boxes placed
outside RBS. Despite its strong position RBS has some of the weak points which can be
removed easily. There are weaknesses in the bank which can be overcome by efforts of the
staff. It’s strength is that it is the number one bank in whole world with respect to the assets
and the big weakness is that it should improve its information sharing with the customers. On
the whole we can conclude that almost all of the employees are satisfied, although some are
dissatisfied whose results are shown in the survey. But on the whole we cannot compare RBS
with any other bank. One can feel the difference while entering its premises that’s why it
says, “We make it happen.”