FINAL REPORT

ON

Faysal Bank (Car Leasing)

SUBMITTED TO: Prof. Ghulam Mustafa

SUBMITTED BY: ShehrozAyaz (05)

SyedFahad (20)

UmairEjaz (16)

PROGRAM: MBA (3rd Semester)

COURSE: Financial Management

UNIVERSITY OF CENTRAL PUNJAB

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Dedications

We dedicate this report to our parents and friends in recognition of their worth and to our teachers who are guiding force for us and it is their effort and hard work that showed us the path of success and prosperity which would be there for us for the rest of our life.

Our thanks to all those who have generously contributed their theoretical knowledge to this report including our teachers. Without their understanding and support, completion of this work would not have been possible.

ACKNOWLEDGEMENT

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In the name of Allah the praiseworthy, the passionate whose blessings made it possible for us to complete this complex and painful task. It is a matter of great enthusiasm and pleasure for us to complete a report in its real sequence. It is all because of Almighty Allah’s great guidance that made us so able. We are cordially thankful to our respected Teacher Mr. Ghulam Mustafa who provided us an opportunity to prepare this Project report and whosebenevolent  guidance   in  d iscourse  and constant  encouragement  he lped  us   to complete this project.

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CONTENTS

Topics Page1 Introduction &History of Faysal Bank 52 Vision, Mission, Values, Strength, Innovations,

Teamwork6

3 Integrity, Professionalism, Responsiveness, Products and Services

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4 Products; Services 85 Faysal Financing Departments 96 Faysal Car Finance 11

7 House Finance 148 Faysal Finance 15

9 Faysal Bank Credit Card customers 1610 Car Leasing of Faysal Islamic Banking 1611 Faysal Bank Car Financing Procedure 1712 Eligible for Faysal Bank Car Financing 1813 Requirements for salaried person 1914 Conclusion 201516 Reference

INTRODUCTION AND HISTORY OF FAYSAL BANK

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Faysal Bank started operations in Pakistan in 1987, first as a branch set-up of FaysalIslamic Bank of Bahrain and then in 1995 as a locally incorporated Pakistani bank under the present name of Faysal Bank Limited.

Faysal Bank Limited was incorporated in Pakistan on October 3, 1994, as a public limited company under the Companies Ordinance, 1984. Currently, the Bank's shares are listed on the Karachi, Lahore and Islamabad Stock Exchanges. Faysal Bank is engaged in Commercial, Consumer, Corporate and Islamic Banking activities.

Faysal Bank’s footprint has expanded to over 245 branches, with combined business assets of over PKR 250 billion, further strengthening its balance sheet and placing it amongst the top ten banks in Pakistan. Faysal Bank’s ambition is to provide par excellence service for its customers while meeting all their financial needs

On January 1, 2002, Al Faysal InvestmentBank Limited, another group entity in Pakistan, merged into Faysal Bank Limited whichresulted in a larger, stronger and much more versatile institution. In fact it has the highest share capital amongst private banks in Pakistan and is amongst the largest in terms of equity.

Faysal Bank Limited is a full service banking institution offering consumer, corporate and investment banking facilities to its customers. The Bank’s widespread and growing network of branches in the four provinces of the country and Azad Kashmir, together with its corporate offices in major cities, provides efficient services in an effective manner.

The majority shareholding of Faysal Bank Limited is held by Ithmaar Bank B.S.C aninvestment bank listed in Bahrain.

VisionExcellence in all that we do

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Mission

To excel in providing innovative, value based banking solutions to meet changing needs of customers and to strengthen the image of trust and reliability

Values Our daily code of conduct is exemplified by eight core values: Four threshold values — values at the heart of our brand. Four differentiator values — values that set our brand apart.

Strengths

It resulted in a larger, stronger and much more versatile institution.

In fact it has the highest share capital amongst private banks in Pakistan.

The largest in terms of equity.

Innovation

We pioneer novel and more efficient ways to deliver solutions. We are dedicated to a culture of improvement and modernization. We stand for originality, in thought, in action and in belief. Our Innovation: Our Strength.

TeamworkWe function as a team. Within functions, we cooperate. Between functions, we collaborate. Together, we aim for excellence and leadership in our chosen markets.

Integrity

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We are recognized by our reliability, credibility and character. We believe in ethical, honorable, time-proven principles of uprightness. We stand for and abide by honesty, truth and transparency.

Professionalism

We are proficient and efficient in all that we do. We provide banking services knowledgeably and skillfully. We uphold regulatory obligations. Our Professionalism: Our Competence

Responsiveness

We are receptive to the need for change and improvement. We are proactive and anticipate our customers’ needs and wants. We act quickly to modify, adjust or prepare for new realities.

Products and Services

We are a progressive bank striving to offer innovative products, easy accessibility, quality service & convenience to our customers. We offer customized financing solutions with flexible criteria and convenient loan tenures. You can avail car, home and personal loans through our various branches. We also offer a host of Corporate & Investment Banking Services to our clients, which include financial and corporate advisory services, along with a wide array of tools to help them achieve their goals

Products:

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Deposit Saving accounts Rozana Munafa Plus Account Faysal Moavin Account Faysal Premium Account Faysal Izafa Account Mahfooz Sarmaya FCY Savinsg Plus Account Consumer Loans: Car Loans Housing Loans Corporate & Investment Banking: Corporate Financing SME Finance Trade Finance Treasury & Capital Markets Agricultural Financing Cash Management Services

Services: PocketMate Visa Debit Card Travellers Cheques Transfer of Funds Safe Deposit Lockers Non-Stop Banking

FAYSAL BANK FINANCING DEPARTMENT:

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There are threedepartments of lease in faysal bank

Faysal Car Finance Faysal Home Finance Consumer Loan

Leasing or buying

This depends on a number of factors that are different for everyone. Affordability, ease of payment and vehicle choices are important factors.

Facilities are offered under Faysal Car Finance

We offer installment based loans extended to individuals and Corporate/SME clients for advance booking of the vehicle as well as ready delivery purchase of the vehicle from authorized dealers.

Type of vehicle can be leased with Faysal Car Finance

We offer leasing against brand new and used locally manufactured and imported vehicles.

Loan tenure options offered by Faysal Car Finance

Tenure of the facility is between 1 to 5 years. For semi -commercial vehicles, the maximum tenure is 3 years.

Mark-up options does Faysal Car Finance offer

We offer variable mark-up rate which is linked to KIBOR.

Minimum loan amount offered under Faysal Car Finance

The minimum loan amount is PKR 100,000.

Co-borrower

Co-borrower must be a member of the immediate family i.e. spouse, parents and children only.

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Registrations of vehicle in my name during the facility tenure

No. Title of the vehicle will remain in Faysal Bank’s name throughout the tenure of the facility.

Can I sell my vehicle or transfer the lease to a third person during the facility period

No. This is a violation of the lease agreement and it should be avoided.

Credit history to avail Faysal Car Finance facility

Yes a good credit history is required to avail the facility.

Do I have the option of early settlement of my loan under Faysal Car Finance? If yes, what is the cost associated with it

Yes, you have an option to pay off your loan at any time during the tenure period with 5% charges on the outstanding principal amount.

Swap vehicles during my lease with Faysal Car Finance

No. You have to apply for a new facility after settlement of the existing facility.

Insurance included on my leased car

Faysal Car Finance arranges a comprehensive insurance coverage of vehicle from insurance companies listed on our Bank’s panel.

Car upon maturity of tenure

Once the facility tenure is completed and you have settled the outstanding amount, you will be issued a NOC (No Objection Certificate) along with a clearance letter for transfer of ownership in your name.

Repossession

On non-payment of the monthly installments, the Bank holds a right to call back the vehicle in accordance with the lease agreement.

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Faysal Car Finance

Faysal Car Finance is the most flexible product designed to meet customer needs.

Ab dream car bani reality!

Faysal Car Finance offers uniquely tailored financing of your car with the lowest mark-up rate. Not only this, you can finance your car up to 5 years with easy monthly installments. So apply today and get your dream car!

Features &Benefits:

Fast and hassle-free processing of application

Flexibility in selection of cars (locally manufactured as well as imported vehicles)

Facility against brand new as well as used vehicle

Loan amount up to 90% of the value of vehicle

Loan tenure from 1 to 5 Years

Co-borrower facility available

Comprehensive insurance coverage from reputed insurance companies

Early settlement option

Car Financing for locally manufactured new and used cars and imported cars.

Car Financing up to five years Down payment only 20% of the car value Minimum documentation charges. Fast processing.

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Option to prematurely terminate the facility

Eligibility:

Now you can swiftly, easily and cost effectively owns a car if you are:

Valid CNIC / NICOP / POC

Aged between 21 and 60 years

Salaried, businessman or self-employed professional

Minimum net income of Rupees. 30,000/- per month*

A Pakistani National holding the New Computerized Identity Card (NADRA)

Minimum 20 years of age at the time of financing. A resident of Karachi, Quetta, Hyderabad, Lahore, Faisalabad,

Multan, Sialkot,Gujranwala, Bahawalpur, Rawalpindi, Islamabad, Peshawar, Mirpur (AK), GujratorGujjar Khan.

A Businessman or Self-Employed with a minimum of one year experience in thesame business and profession.

A Salaried person with at least two years employment history*Varies as per segment/customer type

Documents Required:

Salaried:

Copy of CNIC / NICOP / POC

2 recent passport size photographs

Latest payslip / salary certificate from employer

Bank statement for the last 6 months

Duly filled loan application form

Businessman and Self-employed Professional:

Copy of CNIC / NICOP / POC

2 recent passport size photographs

Bank statement for the last 6 months

Proof of profession or business

Proprietorship letter

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NTN certificate

Tax Returns of 2 years

Professional degree and valid membership of applicable professional body (for SEP only)

Duly filled loan application form

Proprietors, Partnership Concerns or Limited Company:

Copy of CNIC / NICOP / POC

2 recent passport size photographs

Declaration of proprietorship, Certified Partnership Deed, Memorandum & Article of Association, Form A & 29 and Company Profile

Bank statement for the last 6 months

Tax Returns and Assessment Order for the last 2 years

Copy of latest utility bill

Duly filed application form

Dreams made real with Faysal Bank Credit Cards

Faysal Car Finance offers discounted mark-up and lowest insurance rates exclusively for Faysal Bank Credit Card customers

This offer is also applicable on all ex-RBS branded Credit Cards

Housing Finance:13

Faysal Housing Finance gives you so much more than great financing rates - We helpyou all the way to make your next move in an easy and timely manner. Whether youwant to build a new home or are in a hurry to move into a ready built house or just wantto renovate your existing home or even transfer your existing expensive mortgagefinance balance, it is time to come to us for help and advice. We offer you the following

Housing Finance Packages:•Buy a Home•Build a House•Home Renovation•Balance Transfer Facility

Features:•Flexible repayment options•Option to partially or fully terminate the facility.•Financing tenor up to 20 years!!!•Fast processing.•Minimum processing charges•Enhancement option available•Financing available up to 80% of the market value of the property.

Eligibility:A Pakistani Resident and National holding the New

Computerized Identity Card(NADRA) or Non-Resident Pakistani holding a NICOP.

Aged between 25 to 60 years if you are a salaried person and of 65 years if youare in business

I n c o n t i n u o u s e m p l o y m e n t f o r 3 y e a r s a n d a t l e a s t 1 y e a r w i t h t h e e x i s t i n g employer.

In business with at least 3 years of business or professional experience

In business with at least 3 years of business or professional experience Earning a net monthly income of Rs.30,000/- or more [spouse’s income

can alsobe combined with yours].

Faysal Finance:14

Faysal Finance gives you an opportunity to liberate yourself from financial anxieties andfulfill your dreams and aspirations in an easy and affordable manner.

Eligibility:

You are eligible for “Faysal Finance” if: A Pakistani National holding the New Computerized Identity

Card (NADRA). Your age is between 21 to 60 years for salaried and 21 to 65

years for SEB/SEP. Your minimum verif iable monthly income is Rupees.

15,000 for salaried and Rs.25,000/- for SEB/SEP.

Car Finance special offer exclusively for Faysal Bank Credit Card customers giving you:

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Discounted mark-up

Lowest insurance rates

Free Accidental Death Insurance of Rupees. 500,000

Car Leasing of Faysal Islamic Banking:

Barkat Auto Finance based on Diminishing Musharakah

Barkat Auto Finance is based on Diminishing Musharakah, where you participate with Barkat Islamic Banking in a joint ownership of your vehicle and the Bank provides a certain amount of financing. You agree to a monthly payment to the Bank of which one component is rent for use of the vehicle, and the other is for you to increase your ownership of the vehicle. Once you have made the full payment, which has been agreed upon, you become the sole owner with a free and clear title to the vehicle.

Product Features & Benefits

Avail the financing of new, used and imported vehicle for personal use

Quick processing with minimum documentation

No Limit on financing amount starts from as low as Rs. 100,000 and minimum equity requirement of as low as 20%

Multiple options for tenure up to 5 years

Installment repayment to start ONLY after delivery of the vehicle and no processing fee until approval of financing

Built-in Takaful (Islamic Insurance) expense for the entire financing tenure. The bank will arrange Takaful for the vehicle from a reputable Takaful company and will facilitate you in claim processing

Maximum safety of your vehicle ensured through the tracker installation.

Faysal Bank Car Financing Procedure

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Faysal Bank Car Financing offer excellent opportunity to right now get your favorite car and drive it with honor because bank car leasing opportunity is easiest way to pay the amount in five financial years also see online banking benefits and personal banking.

Faysal Bank car leasing is totally flexibility and simple process and proudly present affordable way to be made you owner of car.

Faysal bank is offering 5 years leasing plan ease of monthly payment installments also the customer can plan the tenures if he wants to reduce the payment yearly time frame.

Insurance Coverage

Faysal Bank offers complete insurance facility and coverage plan to cover full risk against theft and any accident damage in the time of full duration of installments with many packages and competitive rates.

Eligible for Faysal Bank Car Financing

The applicant and customer must be in the age bracket of 21 year to 60 year

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Mentioned companies list of Faysal Bank and applicant must meet the minimum income bracket of Rs. 30000 per month, for the contractual employees must working from 3 years and currently active employee with salary bracket of Rs. 50000

Other company employees are not in the approved list of the banks should have one year continuos job status and current salary would be Rs. 4000.

For GOP employees for the continuous job of 6 months with income of Rs.30000 per month.

Requirements for salaried person

Age bracket in the year 21 and 60 yearsApproved Companies list and permanent staff’s salary of Rs.30, 000/- per

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month.

For Contractual Staff 3 year’s continuous job required with salary of Rs.50, 000/- per month.

Other than approved companies need 1 year continuous job with income of Rs. 40,000/- per month.

For GOP Employees 6 months continuous job with salary of Rs.30, 000/- per month.

CONCLUSION

FAYSAL bank will remain an aggressive and innovative financial institution and continueto adhere to the tradition of understanding its customer’s needs and looking for new ways to serve them. Further integration and productivity gains will result in strongerperformance

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in terms of revenue as well as service quality in the coming years. The strong leadership of Board and management and the relentless effort of the staff at FAYSAL bank will be able to offer more superior products and services to customers and to contribute more to economic and social development of Pakistan while developing a bigger future for it.

Reference

Faysal bank (Burket Market) www.Faysalbank.com

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www.scribd.com

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