Banking Issues in Pakistan

7/31/2019 Banking Issues in Pakistan

1/21

In the name of ALLAH the Most beneficent & theMost Merciful


2/21

Banking Issues

Assigned By :

Presented By :


3/21

Introduction

To be discuss some Issue with current information in banking.These Issues are about:

Profit on saving account

Withdrawal Limits on saving account.

Short term and long term loan.Rate of interest on loan

Secure Loan

Intra Bank cheque.

Interest Rate decrease in Monitory Policy 2012.

Punishment on Dishonoring of Cheque.


4/21

Important Issues

Which Bank Providing highest Markup on Saving Account?

Withdrawal limit on saving account.

Tenure of short term and Long term Loan and Difference in

their rate of interest. Issues of rate of interest.

Secure loan under bailment of property documents.

Issue of Intra Bank Cheque.

Views on Rate of Interest decrease by State Bank Of Pakistan.

Dishonouring of Cheque


5/21

Highest Markup on Saving Account

Bank Name Rate of Interest

Meezan Bank 5% On Average monthly minimummaintaining balance

United Bank Limited 6% On Average monthly minimummaintaining balance

Habib Bank Limited 7.19% On Average monthly minimummaintaining balance

Faysal Bank 5% On Average monthly minimummaintaining balance

MCB 6% On Average monthly minimummaintaining balance

Standard Chartered 6% On Average monthly minimummaintaining balance

Summit Bank 9.5% On Average monthly minimummaintaining balance

List of Rate of Interest on Saving Account of Different Bank:


6/21

Chart of Rate of Interest:

5%

6%

7.19%

5%

6% 6%

9.50%

Meezan Bank United BankLimited

Habib BankLimited

Faysal Bank MCB StandardChartered

Summit Bank

Rate of Interest

Rate of Interest


7/21

Highest Interest Rate:

Summit Bank provide Highest Interest Rate on

Saving Account i-e 9.5%Reason:

Summit Bank is a new Bank in Pakistan. As everyBank wants to captured more and more customer so

thats why Summit Bank attracts customer to open

their account in Summit Bank by providing them

highest interest rate.


8/21

Withdrawal Limit on Saving Account

Withdrawal limit on Saving Account in Mostly Bank is

unlimited except of Habib Bank limited.

Habib Bank restricted their customer to maintain at least Rs.

20,000 in their account other wise they will charge.

You can withdraw any amount from your saving account, as in

current account.

But the profit given to customers by bank is on average

monthly maintaining balance.


9/21

Short Term & Long Term Loan

Short Term Loan:

Short term Loan is a loan which tenure is One Year.

You have to pay the Loan in one year.

In some Banks Tenure of Loan is 1-5 Years

Interest Rate on Short Term Loan:

Interest Rate fix

Interest Rate keep high as compare Long term loan.

Tenure is 1-5 Year.


10/21

Long Term Loan:

Long term Loan is a loan which tenure is more

then One Year and may be 5-20 years.

Interest Rate on Long Term Loan:

Interest Rate keep low as compare Long term

loan. Tenure may be 5 years to 20 years.

Short Term & Long Term Loan


11/21

Issues of rate of interest.

Interest rate on Secure Loan (Long Term Loan).

KIBOR+4.6%=Applicable Rate

Annually

Compound Interest

Tenure 5-10 years


12/21

Issues of rate of interest.

Interest Rate on Personal Loan ( Short term)

Tenure 1-5 Years

Applicable Rate = 25-30% (Vary with Customers)

Upper limit = 25%

Lower Limit = 30%

Hidden Charges:

Late Payment Charges: Rs. 1000

Pre-Payment Penalty= 5% of outstanding Principle

balance


13/21

Chart Of Interest Rate on Personal Loan

Consumer Segment Personal Loan

Income Tenure Rate

Top up

replenishment

10000-11999 1-3 yrs 28.99%

>12000

1-3 yrs 25.99%

4-5 yrs 28.99%


14/21

Loan to Value (of property) till 70%

Bank is liable to sell the property in case of non

payment

Owner ship transferred to the Bank is case to nonpayment.

Bank sell property through auction to recover their

amount. No payment will be return to unpaid borrower in case

of non payment.

Issue Of Secure loan against property


15/21

Intra Bank Cheque.

In case of Normal Account:

Cheque cannot be cash from any branch of Bank.

Cheque can be deposit in account and payee will pay charged

some amount in clearing of the cheque.

In Case of Online Account:

Cheque can be cash in any Branch of Bank.

Issue of Intra Bank Cheque.


16/21

State Bank of Pakistan has announce its new

Monetary Policy with a 1.5% decrease in the

interest rates. With this reduction, the interest

rate reduced from 12% to 10.5%. The new

Monetary Policy was announced by Governor

State Bank, Yaseen Anwar.

Dated : 10-Aug-2012

State Bank Decrease Rate 12% to 10.5%


17/21


Views Of Governor State Bank:

Yaseen Anwar blamed the electricity crisis to

be the main driver of economic instability. He

said that the private sector credit was affected

the most as a result of this crisis.

So SBP slashed the rate of interest to increase

the credit of Private sector.


18/21

Views On Policy by Presenter Waqas Khan:

In my Views the decision to decrease mark up

rate from 12% to 10.5% is essential for

reviving the business activities, encourage newinvestments which would ultimately improve

the economic growth of the country.



19/21

Dishonouring of Cheque

[Pakistan Penal Code (XLV of 1860) Section 489-F]

Dishonestly issuing of a Cheque.

Whoever dishonestly issue a cheque towards re-payment of a

loan or fulfillment of an obligation which is dishonored on

presentation, shall be punishable with imprisonment which

may extend to three years, or with fine, or with both, unless

he was establish, for which the burden of proof hall rest to

him, that he had made arranges with his bank to ensure that the

cheque would be honoured and that the bank was at fault in

not honouring the cheque.

Inserted On :

Dated : 25-10-2002


20/21

Thank You


21/21

CREDITS:

Special Thanks To:

Sir Kamran Khan.

Mrs. Shehrish Rizvi

Mr. Ahsan (Manager Finance UBL)

UBL Bank

HBL Bank Jauhar Degree College

Banking Issues in Pakistan

Documents

Transcript of Banking Issues in Pakistan