Internship Report Fayal Bank

8/4/2019 Internship Report Fayal Bank

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FAYSAL BANK LIMITEDInternship Report

2009

Zainab Ali

Air University

2/12/2009


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Faysal Bank Ltd

Internship Report

Zainab Ali


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Faysal Bank Ltd


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TABLE OF CONTEN TS

Acknowledgement ........................................................................................................................................ 5

Executive Summary ....................................................................................................................................... 6

Organization Ove rview ................................................................................................................................. 8

Values, Strategy and the Energized Identity ..................................................................................... 10

Board of Directors and Senior Management .................................................................................... 12

Products and Services................................................................................................................................ 14

Purpose/Objective of Internship ....17

Account Open ing ..19

Cash Management 21

Clearing 22

App endix A ..25


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ACKNOWLEDGEMENT

I have many people to thank for making the internship period at FBL an

extremely productive and enlightening experience while allowing me to apply my

abilities in the best manner possible and providing me with an excellent working

environment. I am esp ecially g rateful to Mr Shah Hussain, Mr Farhan Chishti, Mr

Wasey Ullah Khan, Mr Haseeb Muhammad, Mr Raza Zaidi and Ms Anny Sadaqat.

It has been a pleasure working under the ir guidance an d tutelage .


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EXECUTIVE SUMMARY

This report is the crux of my work experience as an intern at FBL from 20 th July,

2009 to 29th

August, 2009. The inte rnship encompassed basic banking functions

including accou nt op ening , clearing , ATM op erat ions, custome r services etc. The

experienced equipped me with basic knowledge with special emphasis on account

op ening , clearing and customer relations.


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INTRODUCTION

Snapshot of Faysal Bank Ltd


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ORGANIZATION OVERVIEW

Faysal Bank initiate d op erat ion s in Pakistan in 1987, first as a b ranch setu p of

Faysal Islamic Bank of Bahrain. In 1995 it was loca lly inco rpo rated as Faysal Bank

Limited. Faysal Bank Ltd merged with Al Faysal Investment Bank Ltd in January

2002 resulting in a larger institution providing a diverse range of banking

solutions to consumers and corporations.

Faysal Bank Ltd has a branch network of over 130 branches across the four

provinces of Pakistan and Azad Kashmir. Its corporate offices are present in

major cities with its head office loca ted at Shahrah -e-Faisal, Karachi.

Faysal Bank has been given a cred it rat ing of AA (doub le A) by JCR-VIS and

PACRA for medium to long term and A-1+ (A One Plus) for the short term by

the same . AA credit rating signifies high credit quality, strong pro tection factors

and risk that is mo dest dep end ing on the changing e conomic cond itions. A-1+

de notes h igh certainty of time ly payment, outstand ing short term liqu idity and

safety is just a notch below Govt of Pakistans short term obligations.

Ithmaar Bank B.S.C an investment bank listed in Bahrain holds 66.9% shares of

FBL. Ithmaar Bank B.S.C. is licensed by th e Cen tral Bank o f Bahrain and listed on

the Bahrain Stock Exchang e (ITHMR). It has a paid-up cap ital of US$360 million,

total equity of US$1.1 billion and is a full investment bank with its direct

business covering the Middle East and North Africa (MENA) region, as well as South

Asia, Asia-Pacific and Europe. Besides ho lding significant investm en ts in the

banking , financial services and real estate secto rs in d ifferent markets, the main

activities of the Bank include unde rwriting (eq uity and other financings), private

eq uity (structuring , pa rticipa tion and portfolio manage ment), Islamic financing,


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private banking , and advisory services covering pro ject financing, investments,

capital m arkets and mergers & acquisitions. General p ub lic, NIT and other

Pakistani institutions hold remaining shares of FBL.


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VALUES, STRATEGY AND THE ENERGIZED IDENTITY

FBLs brand new vision and mission are as follows;

Vision:

Excellence in a ll that we do.

Mission:

Achieve leadership in providing financial services in chosen markets through

innovation.

Faysal Bank Ltd is realign ing three core areas; products and services o ffered by

the bank, the processes adop ted to de liver these produ cts and services to

consumers and the technology updates required to produce the capability for

delivering them.

The banks image was refreshed in 2008 to bring in a contemporary look

reflecting banking in the modern era. The log o has retained the original colors of

blue and grey and the o ctogram. These e lemen ts denote what the b ank stands

for; inte grity, respect and pro fessionalism. The visual in the octo gram now reads

Faysal to bring more relevance to the logo. The typeface in which the banks

name is written has been changed to give it a more modern day look.

Thresho ld Values:

Integrity

Teamwork Respect Professionalism


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Differentiator Values:

Passion

Responsiveness Innovation Compassion

FBL through its new vision and mission and set of values differentiates itself

from competitors by striving to provide customer centric and innovative services.

In fact innovation is FBLs strength and the bank is committed to anticipating

customer needs and acting on a proactive basis rather than a reactive one.

In 2008 FBL went from being organized regionally to one organized on a

functional basis. The new functional structure sup po rts the long term business

ob jectives. It clarifies roles and responsibilities emp owering mangers in a way tha t

has never do ne be fore. A Strateg ic Develop ment function has b een d evelop ed

that would gu ide the bank to wards realization of its ob jectives. Other structural

initiatives include instituting the Com pliance Com mittee, setting up the Special

Assets Management and Fraud Investigation units.


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BOARD OF DIRECTORS AND SENIOR MANAGEMENT

Board of Directors:

Farooq Rahm atu llah Director

Mohammad A. Rahman Buche erel Director

Mohamed A.R Husain Director

Naved a. Khan Preside nt and CEO

Syed Naseem Ahmed Chairman

Tariq Iqbal Khan Director

Graham Roderick Walker Director

Shahid Ahmed Director

Board o f Directors Committee s:

Audit Committee

Recruitment, Nomination and Remuneration Committee

Board Risk Manage ment Committee

Manage ment Team:

Naved A. Khan President and CEO

Nauman Ansari Head of Corporate /Investmen t Banking

Syed Majid Ali Chief Financial Officer


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Bashir A. Shaikh Advisor on Special Assets/ Acting Head of Risk

Aarij Ali Head of Strate gic Develop me nt

Mehreen Amin Head of Human Resou rces

Taimur Afzal Head of Reta il Ban king

Nasir Islam Head of Comp liance

Ahmed Kamran Head of Services

Masroor Ahmed Qureishi Head of Treasu ry

Internal Committee s:

MANCOM

ALCO

IT Steering Com mittee

Investmen t Committee

Compliance Committee


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PRODUCTS AND SERVICES

Faysal Bank Ltd is a commercial bank providing customers the following products

and services in the Consumer, Corpo rate and Investmen t b anking sectors;

Products:

Faysal Savings Account Faysal Sahulat Current Account Rozana Munafa Plus Account Basic Banking Account Muavin Savings Account Faysal Premium Faysal Izafa Term Deposit Faysal Mehfooz Sarmaya FCY Saving Plus Faysal Personal Finance Faysal Car Finance Faysal Home Finance Corporate Financing SME Financing Trade Financing Treasury and Capital Financing Investment Banking Agricultural Financing Cash Management


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Services:

Pocketmate Visa Debit Card Travelers Cheques Transfer of Funds Safe Deposit Lockers Non Stop Banking


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INTERNSHIP ACTIVITY REPORT


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PURPOSE/OBJECTIVE

Inte rnship is usually a comp ulsory part of the scheme of studies and a

requirement for grad uation in any field o f study. The justification be hind this

policy is to help students apply theoretical concepts in the practical world where

eventually they are destined to work. An internship experience not only tests the

textbook knowledge gained from the study of different courses during a 4 year

graduate program but also familiarizes the student with the inner workings of an

organization and the prevalent corporate culture.

Air University Islamabad in its BBA Honors Program makes it mandatory for

students to gain internship experience usually in the summer after their 6th

semester of studies. The experience can hence form a solid foundation for further

specialized study in the 7th

and 8th

semesters. The universitys placement division

facilitates students in this regard and guides them when they are applying for

internships in different organizations. Students most often join banks,

telecommunication companies, government organizations and other private setups. The

internship usually spans a pe riod of 6 weeks.

As a stude nt o f Business Adm inistration , I have had the opp ortunity of stud ying

a diverse range of courses from Project Management to Operations Management,

from Strateg ic Market ing to Consumer Behavior , from Human Reso urce

Manage ment to Business Research Methods, from Financial Accounting to Business

Finance and Commercial Banking . When provide d with an op po rtunity to work as

an intern at Faysal Bank Ltd I realized that it was time to apply what I had

learned in the Commercial Banking course in a practical way. Working at Faysal

Bank Ltd was an opportunity to gain valuable experience in an industry which is

at its peak and experiencing a bo om in Pakistan. Indeed there are now a


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countless number of banks operating in Pakistan catering to the increasing needs

of consumers, large corporat ions, SMEs and the ag ricultural industry.

My six week inte rnship was b ased in the F-10 Branch of FBL. Being one of the

busiest b ranches in Islamab ad meant that the re was a lot to learn and absorb.

Every new customer posed a new issue for the employees who are d ed icated

ind ividuals striving to provide promp t, innovative and reliab le services.

My time at FBL involved working in bo th Operations and Custo mer Relations. The

banks operations are broadly broken down into the following divisions which will

be further e laborate d upo n in the following chapters ;

Account Opening Cash Management Clearing Remittance ATM ope rations


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ACCOUNT OPENING

The types of accounts a re;

Deposit accounts PLS Savings accoun t Current Accoun t Basic Banking Accou nt Term Deposit Rece ipts (TDR) and Call Dep osit Rece ipts (CDR) Fore ign Currency Accoun ts

Nature o f accounts;

Ind ividual account Sole Proprietorship account Joint account Partnership account Limited Companies account Local Bod ies accou nt Accounts o f Executors and Adm inistrators Account of a minor Account of Illiterate pe rsons Account of Pardah ob serving lad ies Account of consumers having shaky signature or signatures in Non Rom an script

Dormant account Accounts with b alance short o f minimum b alance requirement Attached account/ Account under Garnishee Orders/Under Lien account Blocked account Staff account


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Dividend account Account of d iplomat ic mission /Foreign embassies Private Non-resident Rupee account


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CASH MANAGEMENT

The ob jectives of Cash Manage ment Unit (CMU) at Faysal Bank Ltd are as

follows;

To solicit cheap liquidity Activation of dormant accounts Enhance fee based income To add value to the cash flows of corporate clients by providing

innovative financial solutions where the bank and consumers both become

partners in business.

To cater to the cash manage ment nee ds of existing clien ts and explorenew markets for Banks products and services through constant innovation

and eng ineering. Increase product base of the bank.

Educate consum ers and branches about efficien t u se of resou rces. ManagerOperations.

MANAGER OPERATIONS:

Responsible for ensuring processing of transactions through coordination with

Branches/Customers and ensuring compliance to agreements with customers in

respect of products and services contracted.

PRODUCTS AND SERVICES:

Direct deposit Direct collection Indirect collection Direct debit Account Statement


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CLEARING

Clearing items are routed through NIFT by all banks in Pakistan.

OUTWARD CLEARING:

Counter folio pay in slip signed by an authorized officer of the branchbearing a clearance stamp should be returned to the customer for his

record.

Specified crossing and clearance stamp of FBL, also bearing Branch name,should be placed on the cheque.

On the back of the Payee account cheque, Branch places stamp PayeeAccount Credited and sign by the authorized officer.

After the scrutiny cheques and pay in slips will be sep arated , theconcerned staff will take jotting of cheques and pay in slips separately to

ensure that the total of all cheques received for clearing agrees to the

to tal of dep osit slips/ vouchers. Entries will be made in the Clea ring House

register. In case o f discrepancy, the matter shou ld be referred to the

departmental Head who will take immediate steps to locate the difference .

Separate clearing schedules as per for each bank/branch will be made andattached with the cheq ues. Jott ing of sched ules will be gtaken to ensure

that the total reconciles with the clearing house register.

Credit vouchers are processed in the system against the respectiveaccounts. Accounting entries are reflected on for information.

Cheq ues sent in outward clearing when not passed by the drawee bankdue to different reasons are returned back along with the return memo

showing reason.


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Cheque returns are recorded in the cheque return register showing fullparticulars o f the cheq ue along with the reason for return. Vouchers a re

passed to reverse the respective credit en try, passed in the mo rning and

entered into the system. Client may be intimated accordingly and returned

cheque should be handed over to the client under proper

acknowledgement in the register.

INWARD CLEARING:

These services are offered as follows:

Cheques/ instruments o f different banks drawn on the b ranches of FBL arereceived at the concerned branches along with the schedules of other

banks. Jott ings o f cheques and schedu le are taken sepa rately. Both jott ings

must t ally. The officer h andling /processing the inward clearing sho uld

ensure that all cheques received bear prope r clearing stamp.

If for any reason cheques received in inward clearing are not honored,they will be returned with the memo showing the reason for the same. No

ent ry/voucher will be passed in drawee branch. It is entered in ou tward

clearing return register as the amount of IBDA issued by the main branch

relating to each branch is arrived at after deducting the cheque returned

by the branches.

The designated officer will verify the signatures on the cheques as persignature verification limits and will also scrutinize these cheques for

correctness of date/amount in words and figures etc.

The incoming cheques/instruments shall be posted to the respectiveaccounts as pe r accounting entries. Cheq ues not p aid due to insufficient

balance or for any other reason will be returned to the concerned banks

along with a return memo duly signed by an authorized officer.


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SAME DAY CLEARING:

These services are offered as follows;

Same day clearing is restricted to instruments valued at Rs 500,000/ - and

above, and received by 10:00 am . Same day clearing is sub ject to relevant

charges.

The depositor must make specific request to the branch for same dayclearing.

Same day clearing is restricted to the designated branches only, which willensure that the timings in this respect are strictly followed.


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APPENDIX A

Internship Report Fayal Bank

Documents

Transcript of Internship Report Fayal Bank