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Al-Faysal Bank LimitedAl-Faysal Bank Limited
INTRODUCTION TO THE MAJORINTRODUCTION TO THE MAJOR
ISLAMIC MODES OF FINANCINGISLAMIC MODES OF FINANCING
1.1. MORABAHAMORABAHA
This is a mode of sale and purchase of commodities. TheThis is a mode of sale and purchase of commodities. The
agreement is made between the Bank and a Customer, wherebyagreement is made between the Bank and a Customer, whereby
Bank purchases a commodity and sells the same to Customer on aBank purchases a commodity and sells the same to Customer on a
deferred payment basis. The essential features of the Morabahadeferred payment basis. The essential features of the Morabaha
are:are:
1.1. Existence of a tangible commodity/asset of which physicalExistence of a tangible commodity/asset of which physical
possession can be taken before use or consumption. possession can be taken before use or consumption.
2.2. Such commodity or asset has to be acquired from third partySuch commodity or asset has to be acquired from third party
(commodity/asset already in the possession of the Customer,(commodity/asset already in the possession of the Customer,
cannot form basis of the agreement). cannot form basis of the agreement).
3.3. Bank sells the commodity/asset to the Customer. Bank sells the commodity/asset to the Customer.
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Al-Faysal Bank LimitedAl-Faysal Bank Limited
LOCAL PURCHASE MORABAHA (LPO)LOCAL PURCHASE MORABAHA (LPO)
Bank and the client sign a Morabaha Agreement. ClientBank and the client sign a Morabaha Agreement. Client
submits a request for purchase of commodity/asset by specifyingsubmits a request for purchase of commodity/asset by specifying
quality, quantity and price. Bank appoints an agent under anquality, quantity and price. Bank appoints an agent under an
Agency Agreement (who could be the client) to purchase theAgency Agreement (who could be the client) to purchase the
asset/commodity on behalf of the bank. The Agent purchases theasset/commodity on behalf of the bank. The Agent purchases the
commodity under a Purchase Order from third party aftercommodity under a Purchase Order from third party after
obtaining disbursement from the bank through Receipt and submitsobtaining disbursement from the bank through Receipt and submits
a Declaration to this effect. Bank sells the commodity/asset to thea Declaration to this effect. Bank sells the commodity/asset to the
Client on a cost plus profit basis and the parties agree on aClient on a cost plus profit basis and the parties agree on a
Purchase Price and Due date. Purchase Price and Due date.
MORABAHA IMPORTS (PAD)MORABAHA IMPORTS (PAD)
Bank and Client sign a Morabaha Agreement. In terms of theBank and Client sign a Morabaha Agreement. In terms of the
Morabaha Agreement, the Bank appoints the Client as its AgentMorabaha Agreement, the Bank appoints the Client as its Agent
through an Agency Agreement to import commodities from time tothrough an Agency Agreement to import commodities from time to
time. Client submits an application to establish letter of credit andtime. Client submits an application to establish letter of credit and
the Bank opens it. Upon negotiation, the Bank creates an advancethe Bank opens it. Upon negotiation, the Bank creates an advance
in the name of the Client, value payment of funds to thein the name of the Client, value payment of funds to the
beneficiary. Upon receipt of documents and arrival of goods, thebeneficiary. Upon receipt of documents and arrival of goods, the
Bank and the Client enter into a Morabaha through a declarationBank and the Client enter into a Morabaha through a declaration
submitted by the client. Such Morabaha can be spotted, wheresubmitted by the client. Such Morabaha can be spotted, where
client pays immediately to retire documents or on a deferredclient pays immediately to retire documents or on a deferred
payment basis, if the client wishes to pay later. In case of deferredpayment basis, if the client wishes to pay later. In case of deferred
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Al-Faysal Bank LimitedAl-Faysal Bank Limited
payment, the Client signs a promissory note for the purchase pricepayment, the Client signs a promissory note for the purchase price
agreed and the Bank releases the documents. agreed and the Bank releases the documents.
2.2. IJARAH (LEASING):IJARAH (LEASING):
Clients use Ijarah financing mainly for financing purchase ofClients use Ijarah financing mainly for financing purchase of
plant and machinery. If assets subject to lease are to be freshlyplant and machinery. If assets subject to lease are to be freshly
acquired, Bank may appoint an agent (could be the client) to do soacquired, Bank may appoint an agent (could be the client) to do so
on its behalf. If Client has already acquired the equipment, Bankon its behalf. If Client has already acquired the equipment, Bank
will purchase it from Client and lease it back. The process ofwill purchase it from Client and lease it back. The process of
Ijarah takes place as follows:Ijarah takes place as follows:
Bank and Client sign a Lease Finance Agreement whereby Bank and Client sign a Lease Finance Agreement whereby
Client agrees to take on lease from the Bank for specified Client agrees to take on lease from the Bank for specified
assets for an agreed tenor.assets for an agreed tenor.
Bank appoints an Agent for acquisition of assets, if not Bank appoints an Agent for acquisition of assets, if not
already in possession of Client.already in possession of Client.
Bank intimates Client of acquisition of assets and delivers toBank intimates Client of acquisition of assets and delivers to
place specified by Client.place specified by Client.
Term of lease starts from date Client takes possession ofTerm of lease starts from date Client takes possession of
assets, whether constructive or physical.assets, whether constructive or physical.
Client pays a monthly, or quarterly rental to the Bank for theClient pays a monthly, or quarterly rental to the Bank for the
use of the assets and by virtue of the agreement, becomesuse of the assets and by virtue of the agreement, becomes
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Al-Faysal Bank LimitedAl-Faysal Bank Limited
owner of asset only after paying a nominal lease end value.owner of asset only after paying a nominal lease end value.
3.3. MUSHARAKAHMUSHARAKAH
Under Islamic jurisprudence, Musharakah means a jointUnder Islamic jurisprudence, Musharakah means a joint
enterprise formed for conducting some business in which allenterprise formed for conducting some business in which all
partners contribute financially and share the profit as per prepartners contribute financially and share the profit as per pre
agreed upon ratios, while the loss is shared according to the ratiosagreed upon ratios, while the loss is shared according to the ratios
of financial contribution of each partner. The Musharakah is anof financial contribution of each partner. The Musharakah is an
ideal alternate to replace interest based lending with far reachingideal alternate to replace interest based lending with far reaching
effects on both production and distribution of capital.effects on both production and distribution of capital.
Profit sharing ratios in a Musharakah depend entirely on theProfit sharing ratios in a Musharakah depend entirely on the
estimated profit the business is able to generate.estimated profit the business is able to generate.
The Musharakah is a relationship established, by the parties,The Musharakah is a relationship established, by the parties,
by mutual contract and therefore all necessary ingredients of aby mutual contract and therefore all necessary ingredients of a
valid contract must be present.valid contract must be present.
The risk of loss inherent in this mode of financing ensuresThe risk of loss inherent in this mode of financing ensures
that the Bank fully satisfies itself as to the profitability andthat the Bank fully satisfies itself as to the profitability and
feasibility of the business venture as well as to the integrity of itsfeasibility of the business venture as well as to the integrity of its
Musharakah partners.Musharakah partners.
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Al-Faysal Bank LimitedAl-Faysal Bank Limited
4.4. MODARABAMODARABA
This is a kind of partnership where one partner gives moneyThis is a kind of partnership where one partner gives money
to another for investing it in a commercial enterprise. Theto another for investing it in a commercial enterprise. The
investment comes from the first partner who is called "Rabb-ul-investment comes from the first partner who is called "Rabb-ul-
maal" while the management and work is an exclusivemaal" while the management and work is an exclusive
responsibility of the other, who is called "Modarib" and the profitsresponsibility of the other, who is called "Modarib" and the profits
generated are shared in a predetermined ratio.generated are shared in a predetermined ratio.
There are two types of Modaraba namely:There are two types of Modaraba namely:
Al Modaraba Al Moqayyadah:Al Modaraba Al Moqayyadah: Rabb-ul-maal may specify a Rabb-ul-maal may specify a
particular business or a particular place for the Modarib, inparticular business or a particular place for the Modarib, in
each case he shall invest the money in that particular businesseach case he shall invest the money in that particular business
or place. This is called Al Modaraba Al Moqayyadah (restrictedor place. This is called Al Modaraba Al Moqayyadah (restricted
Modaraba).Modaraba).
Al Modaraba Al Mutlaqah:Al Modaraba Al Mutlaqah: If Rabb-ul-maal gives full freedom If Rabb-ul-maal gives full freedom
to Modarib to undertake whatever business he deems fit, this isto Modarib to undertake whatever business he deems fit, this is
called Al Modaraba Al Mutlaqah (unrestricted Modaraba).called Al Modaraba Al Mutlaqah (unrestricted Modaraba).
However, Modarib cannot, without the consent of Rabb-ul-However, Modarib cannot, without the consent of Rabb-ul-
maal, lend money to anyone. Modarib is authorized to domaal, lend money to anyone. Modarib is authorized to do
anything which is normally done in the course of business. Ifanything which is normally done in the course of business. If
they want to have an extraordinary work which is beyond thethey want to have an extraordinary work which is beyond the
normal routine of the traders, it cannot be done without expressnormal routine of the traders, it cannot be done without express
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Al-Faysal Bank LimitedAl-Faysal Bank Limited
permission from the Rabb-ul-maal. Modarib is also notpermission from the Rabb-ul-maal. Modarib is also not
authorized toauthorized to
keep another Modarib or a partnerkeep another Modarib or a partner
Mix his own investment in that particular Modaraba without Mix his own investment in that particular Modaraba without
the consent of Rabb-ul-maal. the consent of Rabb-ul-maal.
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Al-Faysal Bank LimitedAl-Faysal Bank Limited
HISTORY OF THE GROUP HISTORY OF THE GROUP
(ISLAMIC BANKERS)(ISLAMIC BANKERS)
Faysal Bank Limited (FBL) is a subsidiary of Shamil Bank ofFaysal Bank Limited (FBL) is a subsidiary of Shamil Bank of
Bahrain E.C. (Islamic Bankers) which is controlled and managedBahrain E.C. (Islamic Bankers) which is controlled and managed
by the Dar Al-Maal Al-Islami Trust (DMI). by the Dar Al-Maal Al-Islami Trust (DMI).
DMI is headed by H.R.H Prince Mohamed Al Faisal Al SaudDMI is headed by H.R.H Prince Mohamed Al Faisal Al Saud
with its Head Office in Geneva, Switzerland. It has been one ofwith its Head Office in Geneva, Switzerland. It has been one of
the leading contributors to the development of Islamic-banking inthe leading contributors to the development of Islamic-banking in
the world, particularly with regard to promoting new modes ofthe world, particularly with regard to promoting new modes of
investments compatible with Islamic Shariah, through its networkinvestments compatible with Islamic Shariah, through its network
of over 20 financial and business companies, represented in 15of over 20 financial and business companies, represented in 15
countries around the world.countries around the world.
Shamil Bank of Bahrain E.C. (Islamic Bankers) came intoShamil Bank of Bahrain E.C. (Islamic Bankers) came into
existence when the board of DMI decided to merge Faysal Islamicexistence when the board of DMI decided to merge Faysal Islamic
Bank of Bahrain and Islamic Investment Company of the Gulf.Bank of Bahrain and Islamic Investment Company of the Gulf.
Based on the pioneering experience of Islamic-banking of both, aBased on the pioneering experience of Islamic-banking of both, a
new entity, Shamil Bank of Bahrain E.C was formed. Thenew entity, Shamil Bank of Bahrain E.C was formed. The
amalgamation process was completed in June 2000, with anamalgamation process was completed in June 2000, with an
objective to further enhance and consolidate the financial base andobjective to further enhance and consolidate the financial base and
to optimize the operational economies. This brought forth ato optimize the operational economies. This brought forth a
dynamic institution for integrating Islamic-banking principles anddynamic institution for integrating Islamic-banking principles and
systems on a global basis. Shamil Bank continues to thrive with itssystems on a global basis. Shamil Bank continues to thrive with its
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Al-Faysal Bank LimitedAl-Faysal Bank Limited
Islamic-principles and a strong asset base of US$ 2.9 billion andIslamic-principles and a strong asset base of US$ 2.9 billion and
equity of more than US$ 230 million. The Bank is fully committedequity of more than US$ 230 million. The Bank is fully committed
to the region and continues to hold a 60 percent controllingto the region and continues to hold a 60 percent controlling
interest in Faysal Bank Limited, Pakistan.interest in Faysal Bank Limited, Pakistan.
INTRODUCTION TO FBLINTRODUCTION TO FBL
Faysal Bank Limited (FBL) was incorporated on October 3,Faysal Bank Limited (FBL) was incorporated on October 3,
1994 in Pakistan as a public limited company. The shares of the1994 in Pakistan as a public limited company. The shares of the
Bank are quoted on Karachi and Lahore Stock Exchanges. FBLBank are quoted on Karachi and Lahore Stock Exchanges. FBL
commenced business operations effective January 1, 1995, takingcommenced business operations effective January 1, 1995, taking
over six branches of Faysal Islamic Bank of Bahrain E.C. (FIBB),over six branches of Faysal Islamic Bank of Bahrain E.C. (FIBB),
which had established its presence in Pakistan since 1987. Sixtywhich had established its presence in Pakistan since 1987. Sixty
percent of its share capital is held by Shamil Bank of Bahrain E.C.percent of its share capital is held by Shamil Bank of Bahrain E.C.
(Islamic Bankers), and the(Islamic Bankers), and the remaining forty percent by the localremaining forty percent by the local
public.public.
FBL was the first Bank to start Islamic-banking in PakistanFBL was the first Bank to start Islamic-banking in Pakistan
under the name of FIBB. Its strict compliance to Shariah gives aunder the name of FIBB. Its strict compliance to Shariah gives a
distinctive edge over other conventional Financial Institutions.distinctive edge over other conventional Financial Institutions.
The Bank is governed by strict Islamic-banking rules and is notThe Bank is governed by strict Islamic-banking rules and is not
allowed to invest in any government / institutional securities orallowed to invest in any government / institutional securities or
financial investment schemes that are interest based.financial investment schemes that are interest based.
Since 1987, FIBB operations have been extended to Pakistan in theSince 1987, FIBB operations have been extended to Pakistan in the
form of full commercial operations. FBL, from the time of itsform of full commercial operations. FBL, from the time of its
inception has been acknowledged as the Best Commercial Bank ininception has been acknowledged as the Best Commercial Bank in
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Al-Faysal Bank LimitedAl-Faysal Bank Limited
Pakistan for two consecutive years by two reputable internationalPakistan for two consecutive years by two reputable international
publications, i.e. Euro Money and Asia Money.publications, i.e. Euro Money and Asia Money.
BRANCH NETWORKBRANCH NETWORK
Limited (FBL) has eleven branches spread all over theLimited (FBL) has eleven branches spread all over the
country.country.
The details of branches include:The details of branches include:
3 Branches At Karachi3 Branches At Karachi
2 Branches At Lahore 2 Branches At Lahore
1 Branch At Faisalabad 1 Branch At Faisalabad
1 Branch At Islamabad1 Branch At Islamabad
1 Branch At Rawalpindi1 Branch At Rawalpindi
1 Branch At Peshawar1 Branch At Peshawar
1 Branch At Multan1 Branch At Multan
1 Branch At Quetta1 Branch At Quetta
1 Branch At Mirpur (Azad Kashmir)1 Branch At Mirpur (Azad Kashmir)
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Al-Faysal Bank LimitedAl-Faysal Bank Limited
All these twelve Branches of Faysal Bank Limited is dividedAll these twelve Branches of Faysal Bank Limited is divided
into three Regions:into three Regions:
North RegionNorth Region South RegionSouth Region Central RegionCentral Region
Islamabad BranchIslamabad Branch 3 Karachi Branch3 Karachi Branch 2 Lahore Branch2 Lahore Branch
Peshawar BranchPeshawar Branch Quetta BranchQuetta Branch Faisalabad BranchFaisalabad Branch
Rawalpindi BranchRawalpindi Branch Multan BranchMultan Branch
Mirpur BranchMirpur Branch
NOTE: NOTE:
THE MULTAN BRANCH WAS ESTABLISHED ON 1THE MULTAN BRANCH WAS ESTABLISHED ON 1 STST
NOVEMBER 2001 WITH ELEVEN STAFF MEMBERS.NOVEMBER 2001 WITH ELEVEN STAFF MEMBERS.
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Al-Faysal Bank LimitedAl-Faysal Bank Limited
MISSION STATEMENTMISSION STATEMENT
VISIONVISION
“The introduction of a just and equitable financial system by“The introduction of a just and equitable financial system by
being a world class multi-purpose financial institution, providing abeing a world class multi-purpose financial institution, providing a
range of specialised services, working on Shariah principles.”range of specialised services, working on Shariah principles.”
VALUESVALUES
The mission statement translates into our objectives: The mission statement translates into our objectives:
To comply with the spirit of Islamic Shariah this will governTo comply with the spirit of Islamic Shariah this will govern
our entire business by translating it into modern financialour entire business by translating it into modern financial
products and services. products and services.
To strive for halal profit, prudent growth and pursuit ofTo strive for halal profit, prudent growth and pursuit of
improved efficiency. improved efficiency.
To focus on serving our customers and shareholders by buildingTo focus on serving our customers and shareholders by building
relationships based on trust and mutual benefit. relationships based on trust and mutual benefit.
To inculcate a culture of teamwork within the Bank byTo inculcate a culture of teamwork within the Bank by
introducing staff training and development programmes. introducing staff training and development programmes.
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Al-Faysal Bank LimitedAl-Faysal Bank Limited
MANAGEMENT HIERARCHY OF FAYSAL BANKMANAGEMENT HIERARCHY OF FAYSAL BANK
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PresidentPresident
CEO/CGMCEO/CGM
Country General Country General
ManagerManager
CreditCreditDepartmentDepartment
Operations Operations DepartmentDepartment
ConsumerConsumerBankingBanking
Corporate Corporate Banking GroupBanking Group
Country Country Operations Operations
ManagerManager
Head of Head of Consumer Consumer BankingBanking
Country Risk Country Risk ManagerManager
CorporateCorporateHeadHead
CorporateCorporateHeadHead
Regional Regional Corporate Corporate
HeadHead
Regional Regional Operations Operations
ManagerManager
Regional Head of Regional Head of Consumer Consumer BankingBanking
Branch Branch Relationship Relationship
OfficerOfficer
Branch Branch Operations Operations
ManagerManager
Branch Sales & Branch Sales & Service Service
ManagerManager
Credit OfficersCredit Officers
Branch Branch ManagerManager
OfficersOfficers
Personal Personal Services Services OfficersOfficers
CorporateCorporateHeadHead
Al-Faysal Bank LimitedAl-Faysal Bank Limited
BOARD OF DIRECTORSBOARD OF DIRECTORS
H.R.H Prince Mohamed H.R.H Prince Mohamed
Al Faisal Al SaudAl Faisal Al Saud ChairmanChairman
Mr. Farook BengaliMr. Farook Bengali President & CEOPresident & CEO
Mr. Khalid A. JanahiMr. Khalid A. Janahi DirectorDirector
Mr. Mahmood A. FaruquiMr. Mahmood A. Faruqui DirectorDirector
Mr. Nasir Ali Shah BukhariMr. Nasir Ali Shah Bukhari DirectorDirector
Mr. Ziad H. RawasdehMr. Ziad H. Rawasdeh DirectorDirector
Dr. Said Sa'ad Dr. Said Sa'ad DirectorDirector
Mr. Tariq Iqbal KhanMr. Tariq Iqbal Khan Director (NIT Nominee)Director (NIT Nominee)
EXECUTIVE COMMITTEE:EXECUTIVE COMMITTEE:
Mr. Khalid A. JanahiMr. Khalid A. Janahi
Mr. Hasan S. Al-JabariMr. Hasan S. Al-Jabari
ChairmanChairman
MemberMember
Mr. Farook BengaliMr. Farook Bengali MemberMember
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Al-Faysal Bank LimitedAl-Faysal Bank Limited
MANAGEMENT HIERARCHYMANAGEMENT HIERARCHY
The highest authority in the management of Faysal BankThe highest authority in the management of Faysal Bank
Limited is the President. He is responsible for the overallLimited is the President. He is responsible for the overall
functions of the bank. He sits at the Karachi Head Office of thefunctions of the bank. He sits at the Karachi Head Office of the
Faysal Bank Limited and controls the functions of the Bank.Faysal Bank Limited and controls the functions of the Bank.
Next authority after the president is CEO (Chief ExecutiveNext authority after the president is CEO (Chief Executive
Officer) or CGM (Country General Manager). He is responsibleOfficer) or CGM (Country General Manager). He is responsible
for the overall functions of the Bank. He assists the president infor the overall functions of the Bank. He assists the president in
his work.his work.
Then the functioning of the bank is divided into three mainThen the functioning of the bank is divided into three main
categories.categories.
Credit DepartmentCredit Department
Operations DepartmentOperations Department
Consumer Banking.Consumer Banking.
CREDIT DEPARTMENTCREDIT DEPARTMENT
The main purpose of this department is to extend loans to itsThe main purpose of this department is to extend loans to its
clients for the productive purpose. Credit Department is alsoclients for the productive purpose. Credit Department is also
called Corporate Banking Group.called Corporate Banking Group.
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Al-Faysal Bank LimitedAl-Faysal Bank Limited
OPERATIONS DEPARTMENT OPERATIONS DEPARTMENT
Operations department of the Faysal Bank Limited isOperations department of the Faysal Bank Limited is
responsible for the overall operations of the bank, Customerresponsible for the overall operations of the bank, Customer
Services Department, Remittance Department, ClearingServices Department, Remittance Department, Clearing
Department, Accounts Department, etc. all come under it.Department, Accounts Department, etc. all come under it.
CONSUMER BANKINGCONSUMER BANKING
Consumer Banking is the Marketing Department of theConsumer Banking is the Marketing Department of the
Faysal Bank Limited. The Head of Consumer Banking DepartmentFaysal Bank Limited. The Head of Consumer Banking Department
is present at Head Office of Faysal Bank Limited Karachi. Heis present at Head Office of Faysal Bank Limited Karachi. He
prepares the new Deposit Schemes of the Bank and makes theprepares the new Deposit Schemes of the Bank and makes the
marketing strategies of these products. He then communicatesmarketing strategies of these products. He then communicates
these plans to all the branches of the bank. He is being assisted bythese plans to all the branches of the bank. He is being assisted by
Corporate Head and Corporate Head is being assisted by RegionalCorporate Head and Corporate Head is being assisted by Regional
Head of Consumer Banking.Head of Consumer Banking.
At Faysal Bank Limited, consumers are treated very well.At Faysal Bank Limited, consumers are treated very well.
They are of the opinion that customers must be satisfied with theThey are of the opinion that customers must be satisfied with the
services provided by the Bank. All of the Branches try to makeservices provided by the Bank. All of the Branches try to make
sure that customers are satisfied with the services being providedsure that customers are satisfied with the services being provided
by the Bank.by the Bank.
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Al-Faysal Bank LimitedAl-Faysal Bank Limited
DEPOSIT SCHEMES AND OTHER FACILITIESDEPOSIT SCHEMES AND OTHER FACILITIES
OFFEREDOFFERED
At FBL "full service" does not simply mean offering a rangeAt FBL "full service" does not simply mean offering a range
of products and services. It also means we provide personalizedof products and services. It also means we provide personalized
service. We believe in dedicating ourselves towards achieving anservice. We believe in dedicating ourselves towards achieving an
outstanding quality in all activities. Therefore, our strengthoutstanding quality in all activities. Therefore, our strength
emanates from the quality of service we provide to our customersemanates from the quality of service we provide to our customers
as well as the competitive products that we offer in Consumeras well as the competitive products that we offer in Consumer
Banking. At FBL, we are aggressively expanding by developingBanking. At FBL, we are aggressively expanding by developing
new array of deposit and investment products in line with thenew array of deposit and investment products in line with the
Islamic principles as well as focusing on developing business inIslamic principles as well as focusing on developing business in
Consumer Finance.Consumer Finance.
Faysal Bank endeavors to build and strengthen customerFaysal Bank endeavors to build and strengthen customer
relationship and their loyalty by providing them with innovativerelationship and their loyalty by providing them with innovative
banking products and services.banking products and services.
We realize every customer’s financial needs are different. AsWe realize every customer’s financial needs are different. As
a result, we have developed a broad range of savings and terma result, we have developed a broad range of savings and term
deposit accounts, each offering specific benefits to individuals,deposit accounts, each offering specific benefits to individuals,
businesses and corporate clients.businesses and corporate clients.
Above all, we are always looking for new ways to makeAbove all, we are always looking for new ways to make
banking as straightforward and friendly as possible in conjunctionbanking as straightforward and friendly as possible in conjunction
with Islamic principles.with Islamic principles.
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Al-Faysal Bank LimitedAl-Faysal Bank Limited
PRODUCTS PRODUCTS
Pak Rupee Current Account – The Faysal SahulatPak Rupee Current Account – The Faysal Sahulat AccountAccount
Pak Rupee Savings Account – The Faysal Savings AccountPak Rupee Savings Account – The Faysal Savings Account
Pak Rupee Rozana Munafa AccountPak Rupee Rozana Munafa Account
Pak Rupee Rozana Munafa Plus AccountPak Rupee Rozana Munafa Plus Account
Pak Rupee Faysal Izafa AccountPak Rupee Faysal Izafa Account
Pak Rupee Faysal Premium AccountPak Rupee Faysal Premium Account
Other ProductsOther Products
SERVICES SERVICES
Global Transaction ServiceGlobal Transaction Service
Safe Deposit Locker ServiceSafe Deposit Locker Service
Travelers Cheque – Pak Rupee and Foreign CurrencyTravelers Cheque – Pak Rupee and Foreign Currency
Evening Banking ServiceEvening Banking Service
Fast Telebanking ServiceFast Telebanking Service
ATMsATMs
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Al-Faysal Bank LimitedAl-Faysal Bank Limited
DEPOSIT SCHEMESDEPOSIT SCHEMES
CONSUMER PRODUCTSCONSUMER PRODUCTS
CURRENT ACCOUNTCURRENT ACCOUNT
We may open a Faysal Sahulat Account with a minimumWe may open a Faysal Sahulat Account with a minimum
balance of Rs.10,000/- only. The account offers unlimitedbalance of Rs.10,000/- only. The account offers unlimited
transaction facilities. We may avail all banking facilities with thetransaction facilities. We may avail all banking facilities with the
current account if we maintain the minimum balance requirement.current account if we maintain the minimum balance requirement.
With a monthly average balance of only Rs.100,000/-* we canWith a monthly average balance of only Rs.100,000/-* we can
enjoy the following valuable banking services absolutely free:enjoy the following valuable banking services absolutely free:
• Countrywide cash withdrawal facility 365 withdrawals per year
- Minimum transactional amount Unlimited
• Countrywide cash deposit facility Unlimited
- Minimum transactional amount Unlimited
• Payorders per year 365
• Cheque leaves per year 365
• Demand Drafts drawn on FBL, local network
365 per year
• Small Locker (where available) 01
• ATM Card (when available) 01
*Subject to change as per Bank's policy*Subject to change as per Bank's policy
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Al-Faysal Bank LimitedAl-Faysal Bank Limited
SAVINGS ACCOUNTSAVINGS ACCOUNT
We may open a Faysal Savings Account with only Rs.20, 000/-. ThereWe may open a Faysal Savings Account with only Rs.20, 000/-. There
is no restriction on the number of transactions in this account and we getis no restriction on the number of transactions in this account and we get
our profit every six months. Profit is calculated each day at the day'sour profit every six months. Profit is calculated each day at the day's
closing balance. Profit will be subject to deduction of Withholding Tax atclosing balance. Profit will be subject to deduction of Withholding Tax at
rates levied by the Government of Pakistan and Zakat, where applicable.rates levied by the Government of Pakistan and Zakat, where applicable.
Current expected rate of profit are as follows:Current expected rate of profit are as follows:
Tier Limit Expected rate of profit
UPTO Rs.25,000/- 00.50 %p.a. Rs.25,001/- to Rs.50,000/- 03.00 %p.a. Rs.50,001/- to Rs.100,000/- 04.50 %p.a. OVER Rs.100,000/- 07.00 %p.a.
ROZANA MUNAFA ACCOUNTROZANA MUNAFA ACCOUNT
For Individual / Corporate Customers For Individual / Corporate Customers
To provide specialized solutions for corporations andTo provide specialized solutions for corporations and
individuals, Faysal Bank’s Rozana Munafa offers the perfectindividuals, Faysal Bank’s Rozana Munafa offers the perfect
combination of a savings account matched with the flexibility of acombination of a savings account matched with the flexibility of a
current account. "A saving account that thinks like a currentcurrent account. "A saving account that thinks like a current
account".account".
We can open this account with an average daily balance ofWe can open this account with an average daily balance of
Rs.200, 000/-. their profits are calculated each day at the day’sRs.200, 000/-. their profits are calculated each day at the day’s
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Al-Faysal Bank LimitedAl-Faysal Bank Limited
closing balance as long as our monthly average balance remainsclosing balance as long as our monthly average balance remains
above the minimum required balance. Profits will be disbursedabove the minimum required balance. Profits will be disbursed
every six months and will be subject to Withholding Tax at ratesevery six months and will be subject to Withholding Tax at rates
levied by the Government of Pakistan. Zakat will be deductedlevied by the Government of Pakistan. Zakat will be deducted
where applicable. The higher our deposits, the higher the profit.where applicable. The higher our deposits, the higher the profit.
Current expected rate of profit are as follows:Current expected rate of profit are as follows:
Tier Limit Expected rate of profit
UPTO Rs.200,000/- 07.00 %p.a. Rs.200,001/- to Rs.1,000,000/- 07.30 %p.a. Rs.1,000,001/- to Rs.3,000,000/- 07.70 %p.a. Rs.3,000,001/- to Rs.10,000,000/- 07.80 %p.a. Rs.10,000,001/- to Rs.25,000,000/- 07.90 %p.a. Rs.25,000,001/- to Rs.50,000,000/- 08.00 %p.a. Rs.50,000,001/- to Rs.500,000,000/- 08.25 %p.a. Rs.500,000,001/- and ABOVE 08.50 %p.a.
For Investment Banks only: For Investment Banks only:
Tier Limit Expected rate of profit
UPTO Rs.100,000,000/- 06.75 %p.a. Rs.10,000,001/- and ABOVE 07.00 %p.a.
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Al-Faysal Bank LimitedAl-Faysal Bank Limited
ROZANA MUNAFA PLUS ACCOUNTROZANA MUNAFA PLUS ACCOUNT
For Individual / Corporate CustomersFor Individual / Corporate Customers
To provide the best possible returns for individuals,To provide the best possible returns for individuals,
corporates and personal businesses, Faysal Bank’s Rozana Munafacorporates and personal businesses, Faysal Bank’s Rozana Munafa
Plus, offers us the opportunity to earn profit every day of the year.Plus, offers us the opportunity to earn profit every day of the year.
"Get the advantage of a term deposit with the convenience of a"Get the advantage of a term deposit with the convenience of a
savings account and the flexibility of a current account". savings account and the flexibility of a current account".
We can open this account with an average daily balance ofWe can open this account with an average daily balance of
Rs.500,000/-. To avail a high profit on this account, they offer usRs.500,000/-. To avail a high profit on this account, they offer us
a tiered profit structure. Profit will be calculated daily on thea tiered profit structure. Profit will be calculated daily on the
closing balance at the interim rate of return as long as our monthlyclosing balance at the interim rate of return as long as our monthly
average balance is above the minimum balance required. Ifaverage balance is above the minimum balance required. If
monthly average balance falls below the minimum requirement,monthly average balance falls below the minimum requirement,
then normal PLS savings account rate will apply but each day atthen normal PLS savings account rate will apply but each day at
the day's closing balance. Profits will be disbursed every monththe day's closing balance. Profits will be disbursed every month
and will be subject to Withholding Tax at rates levied by theand will be subject to Withholding Tax at rates levied by the
Government of Pakistan. Zakat will be deducted where applicable.Government of Pakistan. Zakat will be deducted where applicable.
The higher our deposit, the higher the profit. Unlike other savingsThe higher our deposit, the higher the profit. Unlike other savings
accounts, Rozana Munafa Plus does not keep us waiting. In fact,accounts, Rozana Munafa Plus does not keep us waiting. In fact,
profit is disbursed to our account each and every month, giving usprofit is disbursed to our account each and every month, giving us
the advantage of a monthly income certificate (termthe advantage of a monthly income certificate (term
deposit).Current expected rate of profit are as follows:deposit).Current expected rate of profit are as follows:
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Tier Limit Expected rate of profit
UPTO Rs.500,000/- 07.00 %p.a. Rs.500,001/- to Rs.1,000,000/- 07.10 %p.a. Rs.1,000,001/- to Rs.3,000,000/- 07.25 %p.a. Rs.3,000,001/- to Rs.10,000,000/- 07.40 %p.a. Rs.10,000,001/- to Rs.25,000,000/- 07.55 %p.a. Rs.25,000,001/- to Rs.50,000,000/- 07.70 %p.a. Rs.50,000,001/- to Rs.100,000,000/- 07.85 %p.a. Rs.100,000,001/- and ABOVE 08.00 %p.a.
FAYSAL IZAFA ACCOUNTFAYSAL IZAFA ACCOUNT
At Faysal Bank, they realize every customer’s financialAt Faysal Bank, they realize every customer’s financial
needs are different. As a result, they have developed Faysal Izafaneeds are different. As a result, they have developed Faysal Izafa
Account, which provides an option of growth or a monthly incomeAccount, which provides an option of growth or a monthly income
plan. plan.
Faysal Izafa Account is a term deposit account for corporateFaysal Izafa Account is a term deposit account for corporate
and individual customers designed to help our money growand individual customers designed to help our money grow
securely and swiftly. An account can be opened with ansecurely and swiftly. An account can be opened with an
investment of Rs.25,000/-. This account gives us the option of oneinvestment of Rs.25,000/-. This account gives us the option of one
month to five years deposits. On six month deposit profit is paidmonth to five years deposits. On six month deposit profit is paid
monthly.monthly.
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Current expected rate of profit is between 07.80% to 10.75%Current expected rate of profit is between 07.80% to 10.75%
p.a.p.a.
Profit on the Izafa Account will be subject to deduction ofProfit on the Izafa Account will be subject to deduction of
Withholding Tax at rates levied by the Government of PakistanWithholding Tax at rates levied by the Government of Pakistan
and Zakat, where applicable.and Zakat, where applicable.
OTHER PRODUCTS:OTHER PRODUCTS:
In addition to the special savings and investment schemes,In addition to the special savings and investment schemes,
we can choose from a host of our regular notice deposit schemeswe can choose from a host of our regular notice deposit schemes
with maturities of 7 and 30 days. Profit will be subject towith maturities of 7 and 30 days. Profit will be subject to
deduction of Withholding Tax at rates levied by the Governmentdeduction of Withholding Tax at rates levied by the Government
of Pakistan. And Zakat, where applicable. Current expected rateof Pakistan. And Zakat, where applicable. Current expected rate
of profit on notice deposits is between 05.00% to 05.50% p.a.of profit on notice deposits is between 05.00% to 05.50% p.a.
SERVICES OFFEREDSERVICES OFFERED
Inter-Branch Transfer of FundsInter-Branch Transfer of Funds
We can both deposit and withdraw cash from any of ourWe can both deposit and withdraw cash from any of our
branches, regardless of which branch in which we have thebranches, regardless of which branch in which we have the
account in. We need only to carry our cheque book.account in. We need only to carry our cheque book.
Safe Deposit Locker FacilitySafe Deposit Locker Facility
All our branches offer lockers for lease, in a variety of sizesAll our branches offer lockers for lease, in a variety of sizes
at very competitive rentals. Locker facility is available to allat very competitive rentals. Locker facility is available to all
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customers maintaining minimum balance requirements in theircustomers maintaining minimum balance requirements in their
respective account categories.respective account categories.
Travelers Cheques Travelers Cheques
We may purchase Muslim Commercial Bank (MCB) RupeeWe may purchase Muslim Commercial Bank (MCB) Rupee
Travelers Cheques at any of our branches. Faysal Bank branchesTravelers Cheques at any of our branches. Faysal Bank branches
also issue American Express, US Dollar and Pound Sterlingalso issue American Express, US Dollar and Pound Sterling
Travelers Cheques to provide maximum convenience and ease toTravelers Cheques to provide maximum convenience and ease to
our customers.our customers.
Evening BankingEvening Banking
In addition to the regular morning banking hours, all ourIn addition to the regular morning banking hours, all our
branches are open for business from 3 p.m. to 5 p.m. We maybranches are open for business from 3 p.m. to 5 p.m. We may
deposit cash and cheques, use our locker, open accounts anddeposit cash and cheques, use our locker, open accounts and
conduct a host of other banking transactions during these hours.conduct a host of other banking transactions during these hours.
Fast Telebanking ServiceFast Telebanking Service
When banking with them we need not come to the bank forWhen banking with them we need not come to the bank for
routine work. Faysal Bank offers telebanking facility (currently atroutine work. Faysal Bank offers telebanking facility (currently at
selected branches). We are assigned a unique PIN with which weselected branches). We are assigned a unique PIN with which we
can access information pertaining to our account over thecan access information pertaining to our account over the
telephone. We can also open related accounts, transfer funds intotelephone. We can also open related accounts, transfer funds into
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pre-designated accounts, request for statement by instant faxpre-designated accounts, request for statement by instant fax
through a phone call, amongst many other services.through a phone call, amongst many other services.
Automatic Teller MachinesAutomatic Teller Machines
In order to give its customers maximum convenience, FaysalIn order to give its customers maximum convenience, Faysal
Bank has recently tied in with MCB to use their network of overBank has recently tied in with MCB to use their network of over
100 ATMS country-wide. This means that we can be in any100 ATMS country-wide. This means that we can be in any
location where MCB ATM is located and still have access to ourlocation where MCB ATM is located and still have access to our
Faysal Bank account 24 hours every day. All we have to do isFaysal Bank account 24 hours every day. All we have to do is
carry our ATM card with us.carry our ATM card with us.
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DEPARTMENTS OF FAYSAL BANKDEPARTMENTS OF FAYSAL BANK
LIMITEDLIMITED
1. CUSTOMER SERVICES DEPARTMENT1. CUSTOMER SERVICES DEPARTMENT
Customer Services Department is one of the importantCustomer Services Department is one of the important
departments in the bank. Faysal Bank Limited also has a fulldepartments in the bank. Faysal Bank Limited also has a full
fledge Customer Service Department. This department performs afledge Customer Service Department. This department performs a
variety of functions. Every customer is first received by thisvariety of functions. Every customer is first received by this
department and is assisted here as well. The functions which aredepartment and is assisted here as well. The functions which are
performed by Customer Services Department include:performed by Customer Services Department include:
Account Opening Account Opening
Account ClosureAccount Closure
Balance ConfirmationBalance Confirmation
Statement of AccountsStatement of Accounts
DD/TT/PO applicationDD/TT/PO application
Stop Payment RequestStop Payment Request
Information about Deposit SchemesInformation about Deposit Schemes
Cheque Book Requests etc.Cheque Book Requests etc.
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Remittance DepartmentRemittance Department
A major function of any bank is to transfer the funds fromA major function of any bank is to transfer the funds from
one place to another. Faysal Bank Limited uses the followingone place to another. Faysal Bank Limited uses the following
modes to transfer the funds.modes to transfer the funds.
Demand DraftDemand Draft
Telegraphic TransferTelegraphic Transfer
Payment OrderPayment Order
DEMAND DRAFT (DD)DEMAND DRAFT (DD)
Demand Draft is used to transfer funds from one city toDemand Draft is used to transfer funds from one city to
another. Client who wants to transfer his funds from one city toanother. Client who wants to transfer his funds from one city to
another fills a form requesting the bank to prepare a DD. DDanother fills a form requesting the bank to prepare a DD. DD
applications form contains columns requiring information for theapplications form contains columns requiring information for the
preparations of DD e.g. preparations of DD e.g.
Beneficiary Name Beneficiary Name
Applicant’s NameApplicant’s Name
AddressAddress
Amount to be sent, etc.Amount to be sent, etc.
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Bank deducts some charges against DD. These chargesBank deducts some charges against DD. These charges
include:include:
CommissionCommission
a. Upto Rs. 10,000 0.200/- minimum Rs. 20a. Upto Rs. 10,000 0.200/- minimum Rs. 20
b. 10,001 to 100,000 0.150/- minimum Rs. 40b. 10,001 to 100,000 0.150/- minimum Rs. 40
100,001 to 1,000,000 0.0750/- minimum Rs. 15100,001 to 1,000,000 0.0750/- minimum Rs. 15
Over 1,000,000 0.0500/- minimum Rs. 750Over 1,000,000 0.0500/- minimum Rs. 750
Postage = Rs. 35Postage = Rs. 35
Excise = Rs. 2Excise = Rs. 2
Advance Tax = .2%Advance Tax = .2%
If a client is a tax payer then advance tax is exemptedIf a client is a tax payer then advance tax is exempted
provided that he submits the tax exemption certificate. provided that he submits the tax exemption certificate.
TELEGRAPHIC TRANSFERTELEGRAPHIC TRANSFER
Telegraphic Transfer is another mode of transfer of funds. ItTelegraphic Transfer is another mode of transfer of funds. It
is the quickest mode of transfer of funds from one city to another.is the quickest mode of transfer of funds from one city to another.
For TT’s clients have to submit the application on a prescribedFor TT’s clients have to submit the application on a prescribed
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form of the bank. Client can deposit money into the bank or canform of the bank. Client can deposit money into the bank or can
request the bank to deduct the amount against the TT along withrequest the bank to deduct the amount against the TT along with
the charges against the issuance of TT from his account. Thethe charges against the issuance of TT from his account. The
changes against the issuance of TT charged by Faysal Bankchanges against the issuance of TT charged by Faysal Bank
include:include:
CommissionCommission
Upto Rs. 10,000 0.200/-Upto Rs. 10,000 0.200/- minimum Rs. 20minimum Rs. 20
10,001 to 100,000 0.150/-10,001 to 100,000 0.150/- minimum Rs. 40minimum Rs. 40
100,001 to 1,000,000 0.0750/-100,001 to 1,000,000 0.0750/- minimum Rs. 150minimum Rs. 150
over 1,000,000 0.0500/- minimum Rs. 750over 1,000,000 0.0500/- minimum Rs. 750
Telex charges = Rs. 50 (flat)Telex charges = Rs. 50 (flat)
Advance Tax = .2%Advance Tax = .2%
If a client is a tax payer then advance tax is exemptedIf a client is a tax payer then advance tax is exempted
provided that he submits the tax exemption certificate duly signedprovided that he submits the tax exemption certificate duly signed
and stamped. After receiving the application for the TT, bankand stamped. After receiving the application for the TT, bank
immediately issues the receipt to the customer and immediatelyimmediately issues the receipt to the customer and immediately
fills the TT issuing form which is duly signed and test number isfills the TT issuing form which is duly signed and test number is
the corresponding bank by fax to whom TT is issued. Thethe corresponding bank by fax to whom TT is issued. The
corresponding bank after proper verification i.e. test agreement,corresponding bank after proper verification i.e. test agreement,
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etc., pays the amount to the beneficiary. For the identification ofetc., pays the amount to the beneficiary. For the identification of
proper person, Name, ID number and Bank Account Number isproper person, Name, ID number and Bank Account Number is
used.used.
PAYMENT ORDER (PO)PAYMENT ORDER (PO)
Payment order normally called pay order is anotherPayment order normally called pay order is another
instrument of transferring fund. It is an instrument which is usedinstrument of transferring fund. It is an instrument which is used
to transfer funds within the city. If any party wants to maketo transfer funds within the city. If any party wants to make
payment to another party within the city, it can make paymentpayment to another party within the city, it can make payment
through Pay Order. Bank deducts certain charges against thethrough Pay Order. Bank deducts certain charges against the
issuance of Pay Order. issuance of Pay Order.
Commission = Rs. 50 (flat)Commission = Rs. 50 (flat)
Excise duty = Rs. 2Excise duty = Rs. 2
Advance Tax = .2%Advance Tax = .2%
If a client is a taxpayer then advance tax is exemptedIf a client is a taxpayer then advance tax is exempted
provided exemption certificate is duly signed and stamped. Aprovided exemption certificate is duly signed and stamped. A
client who is willing to get a Pay Order from Faysal Bank Limitedclient who is willing to get a Pay Order from Faysal Bank Limited
will have to fill an application form which contains the followingwill have to fill an application form which contains the following
information:information:
Beneficiary NameBeneficiary Name
Amount of Pay OrderAmount of Pay Order
Applicant’s NameApplicant’s Name
Charges deducted by the bank etc. Charges deducted by the bank etc.
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Payment Order is handed over to the client in the typed formPayment Order is handed over to the client in the typed form
and duly signed by the bank.and duly signed by the bank.
2. FOREIGN EXCHANGE DEPARTMENT2. FOREIGN EXCHANGE DEPARTMENT
In this department the dealing is made in foreign currency.In this department the dealing is made in foreign currency.
In Faysal Bank Limited four types of foreign currencyIn Faysal Bank Limited four types of foreign currency
accounts are available.accounts are available.
US DollarUS Dollar
Pound SterlingPound Sterling
Japanese YenJapanese Yen
Dutch MarkDutch Mark
FUNCTIONS OF FOREIGN EXCHANGE FUNCTIONS OF FOREIGN EXCHANGE
DEPARTMENTDEPARTMENT
This department performs the following functions.This department performs the following functions.
Account Opening Account Opening
Account ClosingAccount Closing
FC IN/Outward RemittancesFC IN/Outward Remittances
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Issuance of Travellers ChequesIssuance of Travellers Cheques
3. CASH DEALING DEPARTMENT3. CASH DEALING DEPARTMENT
Cash dealing department of Faysal Bank Limited is given theCash dealing department of Faysal Bank Limited is given the
full responsibility of handling all receipts and disbursement offull responsibility of handling all receipts and disbursement of
cash, as a result of transaction in both local and foreigncash, as a result of transaction in both local and foreign
currencies. It is also responsible for the book – keeping of thesecurrencies. It is also responsible for the book – keeping of these
transactions and the safe custody of cash. transactions and the safe custody of cash.
The following are the major functions of the Cash DealingThe following are the major functions of the Cash Dealing
Department.Department.
Cash ReceiptsCash Receipts
Encashment of Cheques.Encashment of Cheques.
Clearing DepartmentClearing Department
Clearing is a system in which banks exchanges cheques andClearing is a system in which banks exchanges cheques and
other negotiable instruments drawn on each other. A clearingother negotiable instruments drawn on each other. A clearing
house facility is provided by the State Bank of Pakistan forhouse facility is provided by the State Bank of Pakistan for
offsetting of cross obligations between the different banks.offsetting of cross obligations between the different banks.
The major function of clearing department is to receive theThe major function of clearing department is to receive the
cheques which are drawn on some other bank. The customer cancheques which are drawn on some other bank. The customer can
get the money in his account at Faysal Bank Limited from theget the money in his account at Faysal Bank Limited from the
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cheques drawn on another bank. The bank accepts these chequescheques drawn on another bank. The bank accepts these cheques
and collects the amount from the bank on which cheques are drawnand collects the amount from the bank on which cheques are drawn
through clearing house. Bank charges some commission for thisthrough clearing house. Bank charges some commission for this
function.function.
The representative of all banks in Pakistan attend the StateThe representative of all banks in Pakistan attend the State
Bank session which is performing the duties of clearing house onBank session which is performing the duties of clearing house on
each business day at some fixed time. They deliver cheques thateach business day at some fixed time. They deliver cheques that
their bank may have negotiated by other banks. The responsibilitytheir bank may have negotiated by other banks. The responsibility
of smooth operation of the clearing function lies with the Stateof smooth operation of the clearing function lies with the State
Bank of Pakistan.Bank of Pakistan.
When there are many banks in the country, each will receiveWhen there are many banks in the country, each will receive
a number of cheques drawn on each other and deposited fora number of cheques drawn on each other and deposited for
collection. A clearing house is a place where these cheques arecollection. A clearing house is a place where these cheques are
brought and mutual claims of each bank on each other are offsetbrought and mutual claims of each bank on each other are offset
and a settlement is made by the payment of a difference.and a settlement is made by the payment of a difference.
4. CREDIT OPERATIONS DEPARTMENT 4. CREDIT OPERATIONS DEPARTMENT
In this department of Faysal Bank Limited, the loans areIn this department of Faysal Bank Limited, the loans are
advanced by the bank to its customers. advanced by the bank to its customers.
Loans are given in lump sum amount to the customers toLoans are given in lump sum amount to the customers to
meet the capital requirements of customers. When customers wantmeet the capital requirements of customers. When customers want
loan to finance a large project, bank asks them to provideloan to finance a large project, bank asks them to provide
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feasibility report of that project in order to ensure safe return offeasibility report of that project in order to ensure safe return of
loan.loan.
Faysal Bank Limited extends loan for different maturityFaysal Bank Limited extends loan for different maturity
period. There are short term, intermediate term, and long termperiod. There are short term, intermediate term, and long term
loans offered to its customers. loans offered to its customers.
Maximum period of loans given to client is 180 days. ForMaximum period of loans given to client is 180 days. For
extending loans there is an agreement signed between the bank andextending loans there is an agreement signed between the bank and
the client in which purpose of loan, amount of loan, rate of profitthe client in which purpose of loan, amount of loan, rate of profit
being shared by the bank and the client, etc. are agreed. being shared by the bank and the client, etc. are agreed.
Difference between Faysal Bank Limited and otherDifference between Faysal Bank Limited and other
commercial banks is that Faysal Bank Limited believes on Islamiccommercial banks is that Faysal Bank Limited believes on Islamic
banking. In Islam interest is void therefore Faysal Bank Limitedbanking. In Islam interest is void therefore Faysal Bank Limited
believes on Islamic values. Faysal Bank Limited does not chargebelieves on Islamic values. Faysal Bank Limited does not charge
interest on loans. It makes an agreement with the client andinterest on loans. It makes an agreement with the client and
charges its share of profit.charges its share of profit.
A current account is opened for the client when his/her loanA current account is opened for the client when his/her loan
is sanctioned. If the client is unable to submit profit to the bankis sanctioned. If the client is unable to submit profit to the bank
then there is no compounding charged from him and histhen there is no compounding charged from him and his
outstanding profit remains there without any charge. outstanding profit remains there without any charge.
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BASIC REQUIREMENTS FOR EXTENDINGBASIC REQUIREMENTS FOR EXTENDING
LOANSLOANS
In Faysal Bank Limited, the basic requirement for theIn Faysal Bank Limited, the basic requirement for the
extension of loan is that the person who wants to get credit fromextension of loan is that the person who wants to get credit from
Faysal Bank Limited must be an account holder of the bank. It isFaysal Bank Limited must be an account holder of the bank. It is
not required that the customer should be an account holder of thatnot required that the customer should be an account holder of that
particular branch in which credit application is submitted. If aparticular branch in which credit application is submitted. If a
customer is an account holder of any other branch then his creditcustomer is an account holder of any other branch then his credit
worthiness can be checked from that particular branch. worthiness can be checked from that particular branch.
TYPES OF LOAN OFFERED BY FAYSAL BANK TYPES OF LOAN OFFERED BY FAYSAL BANK
LTDLTD
Faysal Bank Limited offers different categories of loans toFaysal Bank Limited offers different categories of loans to
its clients. its clients.
Loan against foreign currency.Loan against foreign currency.
Loan against property.Loan against property.
Loan against shares.Loan against shares.
Loan Against Foreign CurrencyLoan Against Foreign Currency
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Faysal Bank Limited extends loan against the security ofFaysal Bank Limited extends loan against the security of
foreign currency. The profit margin charged by Faysal Bankforeign currency. The profit margin charged by Faysal Bank
Limited against the foreign currency loan is 12% to 14%.Limited against the foreign currency loan is 12% to 14%.
The maximum limit for the extension of loans is 75% andThe maximum limit for the extension of loans is 75% and
25% is margin retained by the bank e.g. if the client has $10,00025% is margin retained by the bank e.g. if the client has $10,000
in his account then he can get maximum of $7,500 as a loanin his account then he can get maximum of $7,500 as a loan
amount. Following is done against:amount. Following is done against:
Foreign currency account mainly in dollarsForeign currency account mainly in dollars
Fixed deposit receipt in dollars.Fixed deposit receipt in dollars.
LOAN AGAINST PROPERTYLOAN AGAINST PROPERTY
A customer of Faysal Bank Limited can get loan against theA customer of Faysal Bank Limited can get loan against the
collateral of property. The profit charged by the bank against thecollateral of property. The profit charged by the bank against the
property ranges from 14% to 16%. property ranges from 14% to 16%.
The rate of profit depends upon the value of property. If theThe rate of profit depends upon the value of property. If the
property is located in good place and documents of the propertyproperty is located in good place and documents of the property
are complete then bank will charge a profit rate of 14%.are complete then bank will charge a profit rate of 14%.
LOAN AGAINST SHARESLOAN AGAINST SHARES
Faysal Bank Limited also extends loan against the security ofFaysal Bank Limited also extends loan against the security of
shares. But now a days due to the economic instability the loansshares. But now a days due to the economic instability the loans
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against the security of shares is not given. The bank chargesagainst the security of shares is not given. The bank charges
minimum commission from its valued clients. minimum commission from its valued clients.
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COMPETITORS OF FAYSAL BANK LIMITEDCOMPETITORS OF FAYSAL BANK LIMITED
Mainly all the banks in the Private Sector are the competitorsMainly all the banks in the Private Sector are the competitors
of Faysal Bank Limited. Faysal Bank Limited has a competitiveof Faysal Bank Limited. Faysal Bank Limited has a competitive
edge over other commercial banks. This competitive edge is thatedge over other commercial banks. This competitive edge is that
Faysal Bank Limited is the only bank in Pakistan who is trulyFaysal Bank Limited is the only bank in Pakistan who is truly
adopting the concept of Islamic Banking.Other commercial bankadopting the concept of Islamic Banking.Other commercial bank
also claiming that they are doing the Islamic banking but in actualalso claiming that they are doing the Islamic banking but in actual
sense, Faysal Bank Limited is the only bank which is followingsense, Faysal Bank Limited is the only bank which is following
the real concept of Islamic Banking. the real concept of Islamic Banking.
Faysal Bank Limited invests its funds in only Islamic modesFaysal Bank Limited invests its funds in only Islamic modes
of finance e.g. Musharaka business, Modaraba business, Ijara, etc.of finance e.g. Musharaka business, Modaraba business, Ijara, etc.
Due to this factor, many people invest their money in theDue to this factor, many people invest their money in the
Faysal Bank Limited and bank’s deposits are increasing year byFaysal Bank Limited and bank’s deposits are increasing year by
year.year.
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SWOT ANALYSIS SWOT ANALYSIS
After viewing Faysal Bank Limited the strengths,After viewing Faysal Bank Limited the strengths,
weaknesses, opportunities and threats which we have identified areweaknesses, opportunities and threats which we have identified are
as follows.as follows.
STRENGTHS STRENGTHS
ComputerizationComputerization
The main strength of Faysal Bank Limited is that all of itsThe main strength of Faysal Bank Limited is that all of its
branches are fully computerized and they have latest software’sbranches are fully computerized and they have latest software’s
available to keep the records of their customer’s accounts andavailable to keep the records of their customer’s accounts and
other important information. The advantages of computerizationother important information. The advantages of computerization
are:are:
That it reduces manual work.That it reduces manual work.
It provides good customer services.It provides good customer services.
StaffStaff
The second strength of Faysal Bank Limited is that it hasThe second strength of Faysal Bank Limited is that it has
staff which is well qualified and capable of performing the taskstaff which is well qualified and capable of performing the task
which is assigned to them.which is assigned to them.
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Fast ServiceFast Service
The Faysal Bank Limited is one of the leading banks in theThe Faysal Bank Limited is one of the leading banks in the
private sector. The act which makes them capable to achieve thisprivate sector. The act which makes them capable to achieve this
position is the quality and speed of services which they provide toposition is the quality and speed of services which they provide to
their customers. their customers.
Employee ServiceEmployee Service
The Faysal Bank Limited is the one of few banks in theThe Faysal Bank Limited is the one of few banks in the
private sector which provide the employees written policy whichprivate sector which provide the employees written policy which
helps them to know the opportunities present ahead. The rules andhelps them to know the opportunities present ahead. The rules and
regulations of the banks are briefly described in the policy manualregulations of the banks are briefly described in the policy manual
and it is a sort of a guidance for employees to know what is rightand it is a sort of a guidance for employees to know what is right
and what is wrong. and what is wrong.
WEAKNESSESWEAKNESSES
Small NetworkSmall Network
The Weakness Of Faysal Bank Limited is that it has smallThe Weakness Of Faysal Bank Limited is that it has small
network of branches all over Pakistan. It has only 12 branches allnetwork of branches all over Pakistan. It has only 12 branches all
over the country and if we compare this proportion with any Govt.over the country and if we compare this proportion with any Govt.
bank than this proportion is very small. bank than this proportion is very small.
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Al-Faysal Bank LimitedAl-Faysal Bank Limited
Disbelief in AdvertisingDisbelief in Advertising
The other weakness of Faysal Bank Limited is its disbelief inThe other weakness of Faysal Bank Limited is its disbelief in
advertising. We can hardly find any advertisement of the bank inadvertising. We can hardly find any advertisement of the bank in
print media or in electronic media. So management shouldprint media or in electronic media. So management should
consider this and should realize the importance of advertising.consider this and should realize the importance of advertising.
Only then they would be able to attract more customers and theOnly then they would be able to attract more customers and the
market. market.
OPPORTUNITIESOPPORTUNITIES
Govt. PoliciesGovt. Policies
The economic and industrial reforms brought into country byThe economic and industrial reforms brought into country by
the present Military Govt. seems promising. This has not onlythe present Military Govt. seems promising. This has not only
increased the confidence of people within the country but alsoincreased the confidence of people within the country but also
people outside the country are now more interested to have fundspeople outside the country are now more interested to have funds
invested in Pakistan. So now this is the time to avail thisinvested in Pakistan. So now this is the time to avail this
opportunity and attract those investors to come in Pakistan andopportunity and attract those investors to come in Pakistan and
invest funds. This is because when someone comes in the countryinvest funds. This is because when someone comes in the country
and deposit funds in the banks then the balances of the deposit inand deposit funds in the banks then the balances of the deposit in
the bank increases and the banks invest those funds to earn returnsthe bank increases and the banks invest those funds to earn returns
and in that case the bank flourishes.and in that case the bank flourishes.
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Al-Faysal Bank LimitedAl-Faysal Bank Limited
THREATSTHREATS
Greater CompetitionGreater Competition
The major threat for Faysal Bank Limited is the intensifiedThe major threat for Faysal Bank Limited is the intensified
competition among the private banks in the country. There arecompetition among the private banks in the country. There are
many private banks now a days operating in the country and everymany private banks now a days operating in the country and every
bank is trying to improve its functioning and try to give morebank is trying to improve its functioning and try to give more
facilities to customers because in return they will get morefacilities to customers because in return they will get more
deposits from the clients. So if Faysal Bank Limited want to havedeposits from the clients. So if Faysal Bank Limited want to have
an edge from its competitors than it has to improve its functioningan edge from its competitors than it has to improve its functioning
and try to give more facilities and services to its customers. and try to give more facilities and services to its customers.
Impact of PrivatizationImpact of Privatization
Now Days the Govt. is in an attempt to privatize the nationalNow Days the Govt. is in an attempt to privatize the national
banks so that the banks improve their functioning and customersbanks so that the banks improve their functioning and customers
have better service options. Like recently, MCB and Allied Bankhave better service options. Like recently, MCB and Allied Bank
have been privatized. So this has increased the competition amonghave been privatized. So this has increased the competition among
the private banks. the private banks.
If Faysal Bank Limited wants to compete with other banksIf Faysal Bank Limited wants to compete with other banks
and wants to increase its shares in the market then they have toand wants to increase its shares in the market then they have to
improve their services and also have to spend on advertisement. improve their services and also have to spend on advertisement.
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Al-Faysal Bank LimitedAl-Faysal Bank Limited
FUTURE PLANSFUTURE PLANS
Going forward, the Bank is poised for growth of its financingGoing forward, the Bank is poised for growth of its financing
base through selective Morabaha (Financing Resale of Goods),base through selective Morabaha (Financing Resale of Goods),
Musharakah (Mutual Paticipation Financing), ModarabahMusharakah (Mutual Paticipation Financing), Modarabah
(Certificate of Investment) and Ijarah (Leasing) transactions.(Certificate of Investment) and Ijarah (Leasing) transactions.
FBL's equity base is extremely strong and it plans to aggressivelyFBL's equity base is extremely strong and it plans to aggressively
expand its business by introducing Islamic deposit and investmentexpand its business by introducing Islamic deposit and investment
products as well as focusing towards developing business in theproducts as well as focusing towards developing business in the
consumer finance segment.consumer finance segment.
They planned to open three more branches for which theyThey planned to open three more branches for which they
have gained approval from the state bank and they hope to have allhave gained approval from the state bank and they hope to have all
the three branches operating by the end of 2002.the three branches operating by the end of 2002.
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CONSUMER FINANCINGCONSUMER FINANCING
INTRODUCING SOONINTRODUCING SOON
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Al-Faysal Bank LimitedAl-Faysal Bank Limited
OBSERVATIONS AND CONCLUSION OBSERVATIONS AND CONCLUSION
We observed Faysal Bank Limited as a financially soundWe observed Faysal Bank Limited as a financially sound
bank. Its profits are increasing year by year, its staff is very goodbank. Its profits are increasing year by year, its staff is very good
and sincere with the bank. But due to the present economic slump,and sincere with the bank. But due to the present economic slump,
the business of the bank is reduced. Foreign currency business ofthe business of the bank is reduced. Foreign currency business of
the bank is almost stopped. the bank is almost stopped.
Now the bank is concentrating on its Rupee Business and inNow the bank is concentrating on its Rupee Business and in
this regard bank has recently introduced a new scheme calledthis regard bank has recently introduced a new scheme called
Faysal Izafa. The bank is also opening its branches in near futureFaysal Izafa. The bank is also opening its branches in near future
in Sialkot. This will help the customer of Sialkot to get betterin Sialkot. This will help the customer of Sialkot to get better
services from such a good bank in the private sector. services from such a good bank in the private sector.
We found the rules and regulation of the bank very good andWe found the rules and regulation of the bank very good and
strict e.g. a limited staff is allowed to enter cash department andstrict e.g. a limited staff is allowed to enter cash department and
Security system is very good and modern. Security system is very good and modern.
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Al-Faysal Bank LimitedAl-Faysal Bank Limited
SUGGESTIONS SUGGESTIONS
AND AND
RECOMMENDATIONSRECOMMENDATIONS
After making this term report on Faysal Bank Limited,AbdaliAfter making this term report on Faysal Bank Limited,Abdali
Road, Multan, we have suggested some recommendations for theRoad, Multan, we have suggested some recommendations for the
bank which will help the bank to improve its service and the bankbank which will help the bank to improve its service and the bank
would be able to compete with other banks in the private sector. would be able to compete with other banks in the private sector.
There is a great burden of customers on each branch ofThere is a great burden of customers on each branch of
Faysal Bank Limited. We suggest that Faysal Bank Limited shouldFaysal Bank Limited. We suggest that Faysal Bank Limited should
open new branches so that burden of work should be shifted. open new branches so that burden of work should be shifted.
Credit cards should be started and marketing practices shouldCredit cards should be started and marketing practices should
be increased. Marketing practices should be done in a bestbe increased. Marketing practices should be done in a best
possible manner and marketing strategy started at any of thepossible manner and marketing strategy started at any of the
Faysal Bank Limited branch should be adopted by each branch ofFaysal Bank Limited branch should be adopted by each branch of
Faysal Bank Limited.Faysal Bank Limited.
There is a great need of online banking. It should beThere is a great need of online banking. It should be
introduced in the bank at its earliest. Bank should also start ATMintroduced in the bank at its earliest. Bank should also start ATM
Card in the near future and the Bank should also spend onCard in the near future and the Bank should also spend on
advertising and promotion. advertising and promotion.
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