kasb bank report

7/30/2019 KASB Bank Report

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Internship ReportInternship Report

ON

KASB BANKKASB BANKAbdali Road Branch, Multan

PresentedBy:

Musadiq EjazMBA (Finance)

Session: 2007 2010


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DDEDICATEDEDICATED TTOO MMYY

PPARENTSARENTS

WWHOHOAALWAYSLWAYS CCAREARE MMEE


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PREFACEPREFACEPractical work is an integral part of MBA (Finance) degree

program. The internship scheme provides hands on work

experience to the students.

I have also been assigned to do internship of six weeks

period in KASB BANK.

With my humble knowledge and experience, I make every

possible effort to gain practical knowledge about the banking

operations in Pakistan. I have tried to my vest, no doubt, there may

be many flaws and room for improvement but clearly it shows myown efforts, which I had done honestly to complete this report.

Musadiq Ejaz

MBA (Finance)


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AcknowledgmentAcknowledgmentPerson is not perfect in all the contexts of his life. He has a limited

mind and minor thinking approaches. It is the mercy of almighty

ALLAH that shows the man light in the darkness and the person

finds his way to the light. Without mercy of ALLAH, person is

nothing but a helpless creature.

Same is the case with me, as I faces many difficulties during the

completion of this report and have been successful in fulfilling my

duty assigned to me only because of the help of ALLAH.

I feel pleasure to admire all the management of department of

Institute of Southern Punjab for their tireless efforts for the

betterment of the students and provision of better educational

atmosphere. I am also thankful to all staff members of KASB

BANK (Multan Branch) for their help and guidance.

Musadiq EjazMBA (Finance)

HISTORY OF BANKINGHISTORY OF BANKING


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KASB

IN PAKISTANIN PAKISTANThe partition plan was announced on June 3, 1947 and

August 15, 1949 was fixed as the date on which independence

was to take effect. It was decided that the Reserve bank of India

should continue to function in the dominion of Pakistan until

September 30, 1948 due to administrative and technical difficulties

involved in immediately establishing and operating a Central Bank.

At the time of partition, total number of banks in Pakistan

were 38 with 195 offices in PAKISTAN but by December

31,1973. There were 14 scheduled Pakistani commercial banks

3,233 offices all over Pakistan & 74 offices in foreign countries.

The total deposits in Pakistani banks stood at Rs.880 million

whereas the advances were Rs.198 million. The Governor General

of Pakistan, Muhammad Ali Jinnah issued the order for the

establishment of State Bank of Pakistan on 1st of July 1948.


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KASB

There were 14 Pakistani scheduled commercial banks

operating in the country on December 1973, the name of these

were:

1. National Bank of Pakistan

2. Habib Bank Limited

3. Habib Bank (Overseas) Limited

4. United Bank Limited

5. Muslim Commercial Bank Limited

6. Commerce Bank Limited

7. Australia Bank Limited

8. Standard Bank Limited

9. Bank of Bahawalpur Limited

10. Premier Bank Limited

11. Pak Bank Limited

12. Lahore Commercial Bank Limited

13. Sarhad Bank Limited

14. Punjab Provincial Co-operative Bank Limited

The Pakistan Banking Council prepared banks

amalgamation schemes in 1974 for amalgamation of smaller

banks with the five bigger banks of the country. These five banks

are as under:

1. National Bank of Pakistan

2. Habib Bank Limited

3. United Bank Limited

4. Muslim Commercial Bank Limited

5. Allied Bank Limited


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KASB

Nationalization of Banks was not done 1st January 1974

under the Nationalization act 1974, due to certain objectives. But it

had negative effects on efficiency of the banking sector afterwards

a privatization Commission was set up on January 22, 1991. Many

new private banks have incorporated, since then; KASB BANK is

one of the namely established private scheduled banks in

Pakistan.

WHAT IS AWHAT IS ACOMMERCIAL BANK?COMMERCIAL BANK?

A bank is a financial institution which deals with money and

credit. It accepts deposits from individuals, firms, and companies

at a lower rate of interest and gives at a higher rate of interest to

those who apply for loan. The difference between the terms atwhich it borrows and those at which it lends from the source of its

profit. A bank, thus, is a profit earning institute. Any bank that

performs this functioning is called the commercial bank.

According to Crowther:

A bank is a firm which collects money from those who haveit spare. It lends money to those who require it.

According to Banking Ordinance

1962:

According to Section 5(b) of Banking Ordinance 1962,

meaning of banking is as under:


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KASB

Banking company is a company which transacts the

business of banking in Pakistan, mainly of accepting, for the

purpose of lending and investments of deposits of money from the

public, repayable on demand or otherwise and withdraw able by

cheque, draft, order, or otherwise

Introduction to KASB BANK

KASB Bank Limited was incorporated on October 13, 1994 as

Platinum Commercial Bank Limited. The name of the Bank was

subsequently changed to KASB Bank Limited on February 21,

2003, when the majority shareholding was acquired by the KASB

Group. The Bank operates through a network of 21 branches

strategically located all over the country, with another branch to be

established shortly at Karachi.

The Board consists of seven directors having diversified

experience of banking, leasing and brokerage and is chaired by

Mr. Nasir Ali Shah Bukhari. Mr. Ashraf N. Irshaduddin a seasoned

banker heads the Bank as its President & Chief Executive Officer.

The merger of Khadim Ali Shah Bukhari & Co. and KASB

Leasing Limited into the Bank increased the paid-up capital of the

Bank to Rs. 1.293 billion as on December 31, 2003 complying with

the regulatory requirements. Bank also owns a 100% stake in

KASB Securities (Pvt.) Limited and KASB Technology Services

Limited. Bank's capital base is also strong and at December 31,


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KASB

2003 capital adequacy ratio stood at 15.50% against the

requirement of 8%.

In April 2004, Pakistan Credit Rating Agency (Pvt) Limited

(PACRA) had assigned medium to long-term entity rating of the

Bank to BBB+ and short-term rating to A2 giving a Positive

outlook.

The Bank is managed by a team of professionals having a

varied experience of both domestic and international banking.

The Management has focused on restructuring, technology

and creating a market niche for its products. The Information

Technology infrastructure has been upgraded and from March

2004 branches all over the country are on-line. Further ATM

facilities shall be introduced at the main branches. Othertechnology driven enhancements in pipeline are POS, E-banking

etc.

Business Process Reengineering being carried out within the

Bank is in the finalization stages, which is the first step towards

improving operational efficiency and implementation of bank-wide

Information Technology Systems in order to achieve superior

quality banking services.

The Bank offers a complete range of financial services and

the client base at large has access not only to commercial and

consumer banking services, but also to lease financing, equity &


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Debt securities brokerage, investment banking and investment

advice. The Bank believes in providing quality service to the

customers with personalized attention.


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OUR MISSION

OUR VISION


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VALUES


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HIERARCHY STRUCTURE

PRESIDENT

SENIOR EXECTIVE VICE-PRESIDENT

EXCUTIVE VICE-PRESIDENT

SENIOR VICE PRESIDENT

VICE PRESIDENT

ASSISTANT VICE PRESIDENT

OFFICER GRADE I

OFFICER GRADE 2

OFFICER GRADE 3

JUNIOR OFFICER

PABX OPERATOR

DRIVER

PEON

BRANCHH

IERARCHY


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DEPARTMENTS

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Name of Departments Name of Incharge

Deposit Deptt. MR.SALMAN

Remittance Deptt MR.HUMAYUN.K.A.BUTT

MR MALIK KHIZAR

Foreign Exchange Deptt MR.SAMMAR RAZA

Accounts Deptt. MS.HUMERA ALTAF

Credit Deptt

Consumer Deptt

MS. SAIMA RASHEED

MR. M.SABIR KHILJI

REMITANCE

DEPTT.

DEPOSITDEPTT.

FOREIGN

EXCHANGE

DEPTT.

ACCOUNTSDEPTT.

CREDIT

DEP


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KASB

Board of Directors

Chairman

Mr. Nasir Ali Shah Bukhari

Directors

Mr. H.U. Beg

Chief Justice (Retd.) Abdul Karim Khan Kundi

Mr. Sohail Wajahat H. Siddiqui

Mr. Tariq M. Rangoonwala

Mr. Arif Ali Shah Bukhari

Mr. Naveed Hussain Shah

Management

Mr.AshrafN. Irshaduddin - President & Chief Executive Officer

Mr.Parvaiz Ahmad - Executive Vice President, Chief Operating

Officer

Mr.Shamim A.Naik - Executive Vice President, Country Risk

Manager

Mr.Muhammad Nasir Jamal - Senior Vice President, Company

Secretary and Chief Financial Officer

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KASB

KASB Bank Branches

Southern Region

KARACHI

Main BranchBusiness & Finance Center,Ground Floor, I. I. Chundrigar Road,KarachiTel: (021) 2446005-10 / 2446772-77Fax: (021) 2446781UAN: 111 555 666

Karachi Stock Exchange Branch93-95, 2nd Floor Karachi StockExchange Building, Stock ExchangeRoad, KarachiTel: (021) 2473561-63Fax: (021) 2473564

Jodia Bazar BranchSuleman Street, Behind Lal MasjidNear Achi Qabar, KarachiTel: (021) 2400322 / 2400458 /2434805 / 2420657Fax: (021) 2433519

Shahrah-e-Faisal Branch1/1-A, Block VI, P.E.C.H.S, MainShahrah-e-Faisal, KarachiTel: (021) 4313236-38Fax: (021) 4538638

Gulshan-e-lqbal BranchFriends Paradise, SB 36, BlockNo. 13-B, Main University Road,Gulsha-e-Iqbal, KarachiTel: (021) 4981330-31Fax: (021) 4981334

Clifton BranchPlot No. DC-4, Block No. 9, KDA

Scheme No. 5, Merchant Centre,Clifton, KarachiTel: (021) 5861615 / 5878778Fax: (021) 5878779

SITE BranchSITE Commerce Park, B/9-B1, SITE,Karachi

HYDERABADHyderabad Branch194/29-30, Saddar Cantt, HyderabadTel: (0221) 729917-18 / 729502-03Fax: (0221) 785977UAN: 111 555 666

QUETTA

Quetta Branch2-10/29, Shahra-e-Iqbal, Quetta

Tel: (081) 836518 / 836948Fax: (081) 842531UAN: 111 555 666

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KASB

Northern Region

LAHORE

Lahore Stock Exchange Branch110-111, 1st Floor, Lahore StockExchange Building, 19, Khayaban-e-

Aiwan Iqbal, LahoreTel: (042) 6367794-97Fax: (042) 6367798

Gulberg Branch76-B, E/1, Main Boulevard, Gulberg

III, LahoreTel: (042) 5764288-89 / 5762146 /5764384Fax: (042) 5755358UAN: 111 555 666

Defence Branch81-Y, Phase III, D.H.A LahoreTel: (042) 5731811Fax: (042) 5722228

Abbot Road Branch19-Abbot Road, Opp. PTV Station,LahoreTel: (042) 6305143-44Fax: (042) 6305142

Circular Road Branch77-Main Circular Road, LahoreTel: (042) 7639040-42Fax: (042) 7660694

RAWALPINDI

Rawalpindi Branch32-Saddar Road, FerozsonsChambers, Rawalpindi CanttTel: (051) 5527841-42Fax: (051) 5527844

ISLAMABAD

Islamabad Branch90-West Razia Sharif Plaza, Jinnah

Avenue, Blue Area, IslamabadTel: (051) 2826181- 83Fax: (051) 2826184UAN: 111 555 666

PESHAWAR

Peshawar BranchAYS Centre, Arbab Road, Saddar,Peshawar CanttTel: (091) 5279432 / 5279625Fax: (091) 5279838UAN: 111 555 666

MIRPUR (Azad Kashmir)

Mirpur (A.K.) Branch

629, Sector B/1, Bank Square,Nangi, Allama Iqbal Road, Mirpur(A.K.)Tel: (058610) 42841 / 44877Fax: (058610) 42742UAN: 111 555 666

MULTAN

Multan Branch76-Holiday Inn, Abdali Road, Multan

Tel: (061) 587701-03Fax: (061) 587705UAN: 111 555 666

FAISALABAD

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Faisalabad Branch14-P, Kotwali Road, FaisalabadTel: (041) 649667-70Fax: (041) 649672UAN: 111 555 666

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KASB

GUJRANWALA SIALKOT

Gujranwala Branch Sialkot Branch

84-85, GDA Trust Plaza, G.T. Road, 2/139,Abbot Road, SialkotGujranwala Tel: (0432) 604990-92Tel: (0431) 252348 / 252358 / 254429 Fax (0432) 589044Fax: (0431) 254529 UAN: 111 555 666UAN: 111 555 666

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KASB

Account Opening Department

Borrowing funds from different sources has become an essentialfeature of todays business enterprises. But in the case of a bank

borrowing funds from outside parties is all more vital because the

entire banking system is based on it. The borrowed capital of a bank

is much greater than their own capital. Banks borrowing is mostly in

the form of deposits. These deposits are lent out to different parties.

Such deposit creation is done through opening an account in the

bank.

Types of Accounts

In KASB, there are the following types of accounts:

Current Account.

Saving Account.

Current Account

In current account there is no interest on it. It is for only

transaction purposes. They are paid on demand. When a banker

accepts a demand deposit, he incurs the obligation of the paying all

cheques drawn against him to the extent of the balance in the

account. As there is no profit paid on this account it is also called

checquing account because cheques can be drawn on it. Current

account is mostly opened for business.

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KASB

Saving Account

The purpose of this account is to induce the habit of savingindividuals in the neighborhood. The minimum deposit for opening theaccount is Rs.1000/-There are three types of savings Account.

KASB Smart Savings-Classic

KASB Smart Savings-Gold

KASB Smart Savings-Corporate

KASB Smart Savings-Classic

Less than 100K 0.5%

100K to < 500K 2.50%

500k and Above 3.50%

KASB Smart Savings-Gold

Less than 1M 0.75%

1M to < 5M 3.75%

5M to < 25M 4.25%

25M and Above 4.50%

KASB Smart Savings-Corporate

Less than 100K 0.25%

100K to < 1M 1.50%

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KASB

1M to < 5M 2.50%

5M to < 10M 3.00%

10M to < 50M 3.50%

50M to < 100M 4.25%

100M & Above 5.00%

(Profit calculated on daily Average Balance).

Notice Deposits

Notice deposits are kind of fixed deposits. The minimum

balance Requirement for opening the account is Rs.5000/- and

payment is drawn on maturity of the specific period. Notice deposit is

of the two kinds:

One for which a prior notice of 07 days and above is

required from the customer before with drawing deposited

amount and for which rate of return is 3.00%

Second for which a prior notice of 30 days and above isrequired from the customer before with drawing the

deposited amount and for which rate of return is 3.50%.

Term Deposits

A term deposit is a deposit that is made for a certain periods of

time. At the end of the specific period, the customer is allowed to with

draw the principle amount.

The term deposit account varies from one month to 5 years,

and the minimum balance requirement is Rs.5000/- As the PLS TDR

is in the shape of deposit receipt, no cheque-book issued.

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The amount of profit is given to deposits in three ways:

By cash

By sending a bank draft to depositors home address or

officers or whatever is specified as mailing address.

The amount is credited in any one of the checking accounts

of the depositor.

KASB Smart Term Deposits

Profit Rates for Individuals

Tenor of Deposit Annual Nominal Rates

1 Month 4.50%

2 Months 4.75%

3 Months 5.50%

6 Months 6.00%

9 Months 6.50%

1Year 7.25%

2 Years 7.50%

3 Years 8.25%

4 Years 8.75%

5 Years 9.25%

Profit Rates for Corporate

Annual Rate

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1-24.99M 25-49.99M 50-99.99M 100-199.99M 200M Plus

1 Month 3.50% 4.50% 5.00% 5.75% 6.00%

3 Months 5.00% 5.65% 6.00% 6.65% 7.00%

6 Months 6.00% 6.50% 6.75% 7.15% 7.50%

1 Year 6.50% 7.00% 7.35% 7.50% 7.75%2 Years 7.00% 7.20% 7.65% 8.00% 8.15%

3 Years 7.50% 8.00% 8.50% 9.00% 9.25%

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KASB

Account Opening Procedure

For the checking accounts (C/A, SAVING), there are different

types of account holders are required for all these types of account

holders. The operation/procedure requirement that is needed for

Individual Account differ greatly from Joint Account, Proprietorship

Partnership, Limited Company and Club Society or Association

as explained below.

Individuals Account

When a single man or woman opens an account in his/her own

name and has the right to operate it is called individual account.

Documentation

For literate person copy of National Identity Card is required as

a primary requirement. For illiterate person, along with the copy of

National Identity Card requirement he or she must come in person for

opening the account.

Operation

The person place a Check Mark in the type of account

and type of operation required.

He/she fills in part-1 of the form, a fix his/her either two or

four similar signature (or thumb expression in the signature

space and get it introduced and signed by a person who

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KASB

already has an account with the bank and write his account

number in the specific rows in a specific space.

The person fills in next of kin position where he/she

father, mother, husband/wife or any other relatives name,

his/her address, phone number and affix his/her signature

to certify this requirement. This requirement is needed

because in his/her absence bank can have

correspondence with the specific person.

The person put her/his signature (or thumb expression) on

the signature specimen card (SS CARD) similar in the area

on the form. One the back of SS card mailing address,

telephone number, person to contact and introducer space

is filled in. These entire requirements are necessary for

future.

The person deposits the initial amount for opening account

on to the cash counter. The person put his signature on

form-A (check book requisition) on two places in

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KASB

authorized signature and fills in the Title of Account

space by writing his name.

Joint Account

When two or more persons, neither partners, nor trustees, open

account in their name is called joint account. Husband and wife or

two persons of same sex can open joint account.

Documentation

For joint account copy of N-I-C Card of all the persons is

obtained other things remaining same as in individuals account.

Proprietorship Account

When the owner of the firm operating singly, opens an account

in his firm name, this account is called a proprietorship account.

Documentation

For this kind of account, an application for opening the account

on the firm letter pad (having the firm name) is required along with

the N-I-C Card of proprietor.

Partnership Account

The account is opened in the firm name and all partners

designate one or two persons to act on behalf of the partnership firm

all acts on behalf of firm. The partners in the partnership firm are

liable for the acts of the firm jointly and severely. Every partner in a

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firm has an implied authority bind his co. partners by drawing and

enclosed cheques.

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KASB

Documentation

Copy of N.I.C. Card of all partners.

Application to open the account on the firm letter pad.

Partnership deed in case registered partnership firm.

Letter showing the implied authority of one or more

partners to act on behalf of the firm.

Limited Company AccountDocumentation

Memorandum of associations.

Articles of the association.

Resolution of the Board of Directors.

Certificate of incorporation.

Certificate of commencement of business.

N.I.C.s of Directors.

Letter of Thanks

At the start of the Accounts, 2nd day KASB issues letter of

thanks to Account opener and Account introducer for the trust to

have on KASB Bank.

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Other Responsibilities of Account Opening

Department

Cheque-Book Issuing

Check books are issued only for chequing account such as current

account, saving account and KASB account. They are not issued for other

fixed and term deposits because of their long term accounts nature.

Account Closing

Account is closed on the written request of the customer KASB debits

Rs.100/- as charges for closing the customer account from that account. The

account holder with draws the amount by writing a cheque and just leaves

Rs.100/- in his account

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KASB

Procedure for Opening Other Account

1. Notice DepositThe procedure for issuing notice deposit in KASB is as follows:

The customer comes to the bank and specifies the number

of days for which he wants to deposit hid money in notice

deposit.

The credit voucher is made for the amount of cash to be

deposited, the presence of account is not necessary.

The date of opening, the period the name of the customer,

the signature etc. is all written on the form.

The notice deposit receipt is filled accordingly. All the

requirements are carried out the signature of the customer

and the authorized officer, the stamp of the bank etc.

2. Term Deposit

Any person can open a term deposit. He needs not to have an

account in the bank. The procedure is the same as that of the notice

deposit.

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KASB

REMITTANCE DEPARTMENT

The main function of this department is transfer of funds from one

branch to another branch or one bank to another bank throughout the

country.

Instruments of Remittance Department

The instruments that are handled in the Remittance department are

as follow:

Demand Draft.

Telegraphic Transfer.

Mail Transfer.

Pay Order.

OBC.

IBC.

Issuance Procedure

The issuance procedure is same for all remittances

instruments. We are using DD to explain the Procedure. A demand

draft application is given to the customer, when he fills the relevant

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KASB

information and signs it. The officer in charge then checks the

information form.

The charges such as commission, is charged as per

effective schedule of Charges.

In case of cash deposit the cashiers counts his amounts

and sign the DD application.

Then the two authorized persons of bills and remittance

department signs it.

The entry is made in the DD issuing register.

It is given to the customer.

The vouchers and the DD form given for posting at the

remittance dept.

The DD advises be printed from the computer and mailed

to the respective branch.

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KASB

The DD credit advice is received through mail. The Nos

are checked and signatures are verified.

An entry is made on the DD payable register, and the

voucher is made.

When DD is received, the test Nos are checked, and the

payment is made, if DD is over Rs.2, 50,000. I.e. DD

payable is nil.

Demand Draft

A demand draft is an instrument, which is drawn by one bank

upon another bank for a specific sum of money payable on demand.

It is made by the bank and given to the purchaser against cash orcheque.

If two banks are involved, then one bank sends a DD to anther

bank. But in customer Bank case the customer sends his DD to the

receiver.

Telegraphic Transfer/ Mail Transfer

A telegraphic transfer is a fastest and safest way to transfer

money. The message is fixed. Mail transfer is Slow than a T.T. the

transfer is through mail.

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KASB

Pay Order

It is a cheque drawn by a bank on itself. Pay order is an

instrument in which three parties are involved, the purchaser, the

bank and the receiver. Any customer can purchase it. It is usually

made by govt. Bodies. A single bank is included in this case.

Outward Bills for Collection (OBC)

The bills, which are sent to, their city banks for the local

clearing in that city are called outward bills for collection.

Inward Bills for Collection

The bills, received from other banks out of city for the local

clearing, are called inward bill for collection.

Other Functions

Balancing the Register

At the Monthly/weekly of the day, all the registers are balanced with

the computer balances. The heads and checkes are as follows.

DD payable.

TT payable.

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MT payable.

OBC Collection

IBC collection

If the payables are not cleared for a lot of days, a reminder is sent to

the respective branches.

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KASB

Clearing Department

There is no legal obligation on a banker to collect cheque drawn uponother banks for a customer. However it is function of almost every

modern bank of the collection of cheque and bills on behalf of the

customer.

Clearing department services are provided in order to make

arrangements for the economic collection of the cheque, DDs pay

and other negotiable instruments. A large part of this work is carried

on through the clearinghouse.

Clearinghouse

Clearinghouse is a place where NIFT(National Institution

Facilitation Technologies) members collect the Cheque from different

banks and exchange all means of transaction other than cash and

then settlement procedure carried out for the balancing of the SBP

accounts.

The clearance house is in the New State Bank Building Kalma-

Chowk. All the NIFT members from each bank go to the

clearinghouse for the first clearing at 9:30 and for the second clearing

at 1:30.

First Clearing

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KASB

The NIFT members take the outward cheques and go to the

clearinghouse. The outward cheques and inward cheques are given

to the respective branch. A summary is prepared and given to the

supervisor of the clearinghouse. He balances the accounts of all the

banks.

Second Clearing

After the outward cheques, they are checked and the ones to

return are to be attached with a memo. Then at 1:30, NIFT members

go for the second clearing. At this returned cheques are received.

Once again, the summery is prepared and given to the supervisor for

balancing. The supervisor balances the accounts of banks. The SBP

gives ending position to each member.

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Role of the Clearing Department

Suppose X is an account holder of KASB, and he has to pay

Rs.2, 000/- to Y who is an account holder of MCB. X draws a cheque

in favor of Y and gives it to Y. Now Y instead of coming to KASB for

payment, deposits the cheque at MCB. The NIFT members will bring

those cheques to the clearinghouse and gives it to KASB BANK. The

KASB bank checks the validity of the cheques and in the second

clearing the NIFT members, it told that his cheque has been cleared.

Updating the Clearing Stamps

The clearing stamps would be updated each morning with the

next working days dates the clearing officer. This is done because the

cheques deposited by the customers for clearing are presented to the

clearing house on the following day of receipt.

Receiving Cheques for Clearing

The depositor would be required to fill in the details of the

cheques i.e. date of deposit, title of account, account number, amount

in words and figures of the cheques being deposited, name of bank

and branch on which the cheque is drawn in the slip. In cases more

than one Cheque being deposited for clearing by the customer,

multiple entries may be made on the same Pay-in-Slip giving the total

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KASB

amount in words and figures of the cheques being deposited along

with the individual amount in figures of each cheque.

The clearing Officer shall match the details of the cheque with

details mentioned on the Pay-in-Slip and ensure that:

Cheque is not Specially Crossed to any other bank Bear

stamps of other banks, if so those banks have canceled the

same.

Cheque is not mutilated or torn

Cheque is not stale or post dated

Amount in words and figures on the cheques agree.

Cheque is payable at a bank in the city where it is being

deposited.

Any alteration / amendment / addition / on the cheque is

authenticated by the drawer.

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KASB

Affixing Rubber Stamps

Following rubber stamps are fixed on the face and reverse of

the cheques received for clearing.

On the face of a cheque clearing Stamp.

On the face of a cheque Banks special crossing Stamp.

On the reverse of a cheque made out to the order of our

customer or if the word bearer has been struck off

Payees Account Credited Stamp.

On the reverse of a demand Draft Disbursement

Guaranteed stamp.

On the reverse of a cheque, which can be and has been

endorsed 1st payees Endorsement confirmed 2nd

Payees Account Credited Stamp.

On the reverse of cheque, which has been received, from

an upcountry branch for clearing Our banks

Endorsement Confirmed Stamp

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Book keeping

There are two registers in this department:

o Clearing summary register.

o Outward clearing register.

Clearing Summary Register

In this register the clearing summary balance is made. The

received cheques and the delivered cheques are written in therespective columns.

Inward Clearing Returns

There are many reasons due to which Cheques can be

returned. Some of the reasons are as follows.

Insufficient funds in the account

The drawer has stopped payment of the cheque

Full signatures of the drawer have not authenticated

Alteration and cuttings on the cheque if any

Endorsement is Irregular

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Payment has been stopped by the drawer

Account has been frozen

Drawer deceased

Outward Clearing Register

The outward clearing register is used to write down the detail of

the outward cheques. Outward cheques are those cheques, which

have been delivered to different banks. The amount of these chequeswill be debited to SBP account so these cheques are in favor of us

and have a positive effect.

Different instruction is dealt in the clearing department. All negotiable

instruments e.g.

Cheque

Pay order

Demand Draft

In order to make arrangements for the speedy and economic

collection of cheques, bills and other documents payable or

deliverable at or through offices of members of clearinghouse

clearing services are provided in all the big cities by State bank of

Pakistan.

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Procedure

The branch for clearing items adopts the following procedure.

All cheques, drafts, pay orders etc. accepted for clearing shall be

stamped with clearing stamp on the face of the instruments,

customers, counterfoil and the pay in slip with date of the next

working day, say 1.11.96 because the instrument has to be presented

on 2.11.96.

All cheques received for outwards clearing to be deposited

by the customers are accepted on the banks relevant pay-

in slip (KASB DEP FM 007/008) duly filled in by the

depositor as per printed columns of the pay-in slip.

The depositor should write the instrument number, the

name, and the branch of the bank drawn on and should

sign at the prescribed column (deposited by) for his

signature.

The pay in slip along with the instrument is passed on to

the operation manager for his signature on the pay-in-slip.

All instruments are received for outward clearing shall be

sorted bank wise.

They are posted at the computer in the next date are

received print out.

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The grand totals of all schedules amount and number of

instruments must agree with the totals as per outwards

clearing register.

Clearing Position Statement

After the 1st and 2nd clearing, the clearing positioned statement is

prepared.

A) Inwards cheques, Demand Draft, Pay orders etc.

B) Outwards Cheques, pending cheques

If amount B is greater than amount A, it means that our cash

balance at SBP has increased and so it is a favorable for bank. On

the contrary, if A is greater than and B it means that one SBP

account has decreased and here it is favorable for the bank.

CASH DEPARTMENT

Cash department is very sensitive and risky part of the bank. Very

cautious and competent personnel are needed for the job. KASB has

really such a diligent staff with appreciable competencies and will to

do work.

Main function of Cash department is to deal with cash payment and

cash receipts.

CHEQUE

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Cheque is bill of exchange drawn on specified banker and not

expressed to be payable other wise than on demand.

The Request of a Cheque

It should be in writing

The drawer must not put any condition for the payment of

the Cheque

Drawn on a specified banker only

Payable on demand

A certain sum of money

Payable to a specified person

Signed by the drawer

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Types of Cheque

There are three types of cheque books.

1. Receiving Cashier's Book FCY

2. Receiving Cashier's Book Pak. Rupee.

3. Paying Cashiers Book FCY

4. Paying Cashier's Book Pak Rupee.

5. Daily cash position Book FCY

6. Daily cash position Book Pak Rupee.

The receiving cashiers book is used to write down the details of

the incoming cash. The paying cashiers book is used to note the

details of the outgoing cash.

The daily cash position books are used to prepare the daily

ending balance of the cash on hand. The books for foreign currency

are separate while the books for the Pakistani Rupee are separate.

Parties to a Cheque

The Drawer i.e. the customer

The Drawer i.e. the banker.

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The payee i.e. the person to whom payment is to be

made.

CASH DEPOSIT PROCEDURE

A customer comes to deposit cash in his account. The

procedure followed in the cash department in this case as follows:

The customer fills the pay -in slip. There are two types of

pay-in slips. The red slip is filled if he is a current holder.

The cashier receives the pay -in slip and cash.

He counts the cash and makes the detail of the notes at

the bank of the pay-in-slip.

Then he compares the detail with amount written on the

pay-in slip.

Signs the pay-in Slip.

Writes the entries in the Receiving cashier's book, i.e.

serial No, account type, Account Number, Cheque No

and amount.

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Puts the stamp of the Cash Received on the pay-in slip of

writes the serial number from the receiving cashbook.

The first portion i.e. the Receipt is taken and given to the

customer. While the latter portion is handed over to the

person for the entry in order to update the data.

CASH PAYMENT PROCEDURE

When a customer comes to withdraw a certain amount from his

account, he brings a Cheque along with him. In this case, the

following steps are taken.

The cashier receives the Cheque and checks it whether it

is postdated or predated. Cheque can be cashed within

six months. A repeated Cheque cannot be cashed.

He takes two signatures at the back of the Cheque from

the bearer.

He gives the Cheque for 'posting at the computer. The

computer checks Out whether there is balance in the

account or not. Other instructions are also received e.g.

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blocked, frozen, etc. The posting is done, the a/c is

debited and the Cheque is stamped posted" with the

serial number and date.

The cashier counts the cash and makes the detail at the

back of the Cheque.

The cash is paid to the person and the Cheque is

stamped Cash Paid" immediately.

Cancellation of Cheque

Teller prior to canceling the cheque shall invariably verify the

regularities of the cheque and style of the signature on the cheque

with the specimen on record even to the extents of spelling stokesand dots.

The cancellation shall be done by waving a line with a red pen

across the signature of the drawer and the teller would sign in full

near the signature of the drawer. The head teller would also cancel

the cheque in a similar way.

CALCULATION OF ENDING CASH BALANCE

The official time for receiving deposits and payments is till 1:35.

However some important customers are accommodated afterwards.

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The cash in hand is counted. It contains the cash at the

counter and the cash in the strong room.

Generate from the system a report of all payments and

receipt during the day.

Then opening balance is taken, i.e. the ending balance of

the previous day.

The receipts are added and The payments are deducted

Arrange currency notes according to the denomination.

This daily cash position is written down on the daily cash

position book.

CASH MANAGEMENT

Cash management is a technique of managing cash according

to the requirements of the bank on daily basis. The operation

manager manages this aspect of cash. Every Branch has an

accountant at the State bank Of Pakistan. A 5% of the total deposits

have to be maintaining so there are two main sources of the cash.

o State Bank of Pakistan.

o Head Office.

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LIQUIDITY MAINTENANCE

KASB has to maintain 35% liquidity at SBP. Every branch maintains

5% of its deposits at the local SBP. But this 30% is kept in the form of

Approved securities, e.g. Foreign Investment Bills and Treasury

Bills.

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Foreign Exchange Department

The FOREX department works effectively with an extensive

correspondent network. It deals with import and export sections as

well.

Import Section

In case of import, first a L/C is opened in the bank on behalf of

importer. Importer submits a request for opening a L/C and prepares

an application form. The importer seeking to open a L/C must be

registered with Export Promotion Bureau, it is the basic requirement.

A documentary LETTER OF CREDIT can be defined as:

A conditional guarantee given by a bank to named beneficiary (seller

of goods), to make payment for the goods dispatched by him to the

buyer, against presentation of the called for documents and

compliance with all other terms and conditions of the credit.

Parties to a Letter of Credit

Maximum four parties can be involved in letter of credit.

1. Account Party: The buyer or the importer on whose accountand request the letter of credit is opened is known as account

party or opener.

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2. Issuing Bank: The bank which issues or opens a letter of

credit at the request of importer is called issuing bank.

3. Exporter or Seller:The seller or the party in whose favor L/Cis drawn is the exporter. He is also called beneficiary.

4. Negotiating Bank:The paying bank in the exporters country

on which the draft is drawn, is called negotiating bank or paying

bank.

Procedure for Opening Letter Of Credit

General Consideration

Letters of credit are normally opened against prior

sanctioned limits. However, where prior sanctioned limit is

not available, the branch first submits a CLP to the

competent authority.

Appropriate margin against letter of credit as prescribed in

the LC limit is recovered prior to opening of letter of credit.

Where the amount of credit is Rs.5000000/- or above,

credit report of the beneficiary is also obtained before

establishing the letter of credit. The charges of this report

are recovered from importer.

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LC Application

The importer on the banks standard form KASB FE 201

makes application.

In case of guarantee, the guarantor signs the clause

printed at the foot of the form on the reverse.

The signature of both the applicant and guarantor are

verified. The application form should bear special adhesive

stamp of appropriate value.

The importer himself should fill the application.

Details of every LC opened must be recorded in the

Category Post Book.

How to Establish a Letter of Credit?

Branches authorized to deal in foreign exchange can only open

documentary Letter of Credit. The branches, which are not authorized

to deal in foreign exchange, submit their customers application foropening letter of credit duly completed and signed in all respect along

with all other documents to the nearest authorized branch.

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After completion of the above formalities the opening should

proceed further as under:

Foreign currency amount is converted into Pak Rupee, at

TT/OD selling rate.

The names of advising and reimbursing banks are from the

International Division.

Margin, commission, postage and cable/telex charges (if

LC is being opened by cable/telex) are calculated. If the LCis being opened on behalf of an authorized branch it is

ensured that margin as prescribed by SBP/Head Office has

been fully recovered, where as the commission on LCs of

unauthorized branches is shared equally by the opening

branch and the forwarding branch.

Full particulars of the LC recorded in the LC opening

register.

Separate folio is allotted for each customer in this register

and necessary entries for LC liability and margin are

recorded at the time of opening of LC.

Vouchers are passed on the same day.

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Export Section

Export is another section of Foreign Exchange Department. It

too generates income to the bank as well as the country. In KASB

Multan, three persons operate it.

Under the registration (import and export) order 1952 no person can

export any commodity from Pakistan unless he is duly registered as

an exporter with the Export Promotion Bureau. Bank should ensure

that the exporter is registered with WPB before certifying any export

Form-E for him. The registration number should be quoted on the

relative export form.

Export is not being made in this bank since 2001.

CREDIT DEPARTMENT

The earning of a commercial bank is chiefly derived from interest

charge on loans and discounts, it is there necessary to consider the

position of a banker with regard to loan advances. The profitable uses

which banker with regard and advances. The profitable uses, which

bankers in the country make of their funds, may be classified as

follows.

Call loans and repayable at short notice.

Investment in Government and other stock exchange

securities.

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Purchase and discounting of bills.

Loans and advances.

Types of Credit Facilities

The credit facilities extended by the bank are classified as:

Funds Based

Non-Funded

Funds Based Credit Facilities

If bank provides cash financing to the customer, it is called as

funds based credit facility. KASB provides numerous types of funds

based facilities to its customers. A few of them are mentioned below.

1. Cash finance

2. Running finance

3. Term finance

4. Finance against packing credit

5. Finance against imported merchandise

6. Finance against trust receipt

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Cash Finance

Cash finance is offered against the hypothecation or pledge

of the moveable property/stock of the borrower. In majority of the

cases, this finance is allowed against the pledge of stock (cash

crops). Cash crops in Pakistan are considered as the following:

Wheat

Rice

Cotton

The person who wants to take the finance against any of

these cash crops has to give the full details of the crops. A bank

representative has to give duty on the go-down. The keys of the

Go down are kept with the banks representative. He informs

about any movement in the goods from there and keeps full

record of every thing offered as the security. The goods, which

are offered as pledge, should have higher value than that of loan.

It can be 10%, 15%, 25% or any other value above the amount

of loan. After full satisfaction the amount of the loan is credited to

the customers account. It is special finance account that is

credited and the borrower utilizes it for business purpose. A

separate cheque-book is issued for this purpose.

Running Finance

This type of finance is termed as running finance because

money goes on coming and going from the account. The

customer withdraws the money for his use and deposits in the

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account if he has some excess money. For providing of such

finance a current account of the borrower is opened. The conduct

of this account is kept under observation for a period of three to

six months depending upon the customer. If the borrower has

account in some other bank, the bank statement of that bank is

also observed. If the turnover of the account is satisfactory, the

customer is provided the loan.

The amount of the loan is credited in his account. The

borrower can with draw the amount from his account with the

cheques. It is allowed to the borrower under a pre-sanctioned

limit. The borrower can withdraw maximally up to the pre-

sanctioned limit. The amount outstanding against the borrower is

shown as debit in the account for a partial amount. The mark-up

is charged on the daily product basis of the amount out standing.

The customer pays the interest only for the amount he has

utilized. In case a running finance account is fully adjusted beforethe expiry of the stipulated period, the limit will have to be got

renewed if a letter of continuity is not obtained from the borrower

at the time of sanction.

Finance against Packing Credit

Such finance is allowed to exporters for packing the

goods to be exported. Such credit is ordinarily granted after

evidence of letter of credit or firm contract in favor of borrower.

The loan is advanced against the security of inventory purchased

by the borrower. It is important that the customer execute

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hypothecation agreement with respect to such inventory.

Additional security is also taken depending upon the risk

element. Finance provided against packing credit from bank own

sources but not covered under any of SBP Refinance Scheme is

reported here.

Finance against Packing Credit (Part 1):

This facility is granted under part 1 of export Re-finance

Scheme introduced by the State Bank of Pakistan and is allowed

against firm contract or irrevocable letter of credit either opened

in favor of KASB or open transferable letter of credit. Other

characteristics of this advance are same as in above case.

Finance Against Packing Credit (Part 2):

This finance is allowed to the exporters against their past

performance. The advance allowed to the exporter under this

scheme is got reimbursed from the SBP. The SBP keeps the

disbursed amount in an account called Special Account. No

withdrawal is allowed in the Special Deposit Account and the

amount is released after 180 days. Interest at the rate of treasury

bills is paid on special deposit account.

Finance against Trust Receipts

Documents of title of goods imported through the letter of

credit are handed over to the customer against a trust receipt to

be signed by the latter signifying that the customer holds the

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goods in trust of the bank. The objective being that the customer

discharges the loan from the sale proceeds of the Goods.

Finance against Imported Merchandise

Its name depicts that this type of loan is allowed to the

importers to finance their needs for meeting the cost including

freight, insurance, and customs and excise duty payable on the

imported merchandise. The imported goods are mostly pledged

or hypothecated (rarely) by the lending banks finance and

charges either fully or partially, on production of the delivery

order issued by the banker in favor of the borrower. The delivery

order is addressed to the Go down Officer who is in charge of the

imported goods pledged.

Contingent Non Fund Based Facilities

In such type of facilities the bank provides only guarantee

to the third party on behalf of its customers.

Types of Non-funded Credit Facilities

1. Letter of Credit

2. Letter of Guarantee

Letter of Credit

Letter of credit is type of non-funded facility. The bank

only issues the letter in favor of its customer in case of import

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and exports. Four parties are involved in this system, Importer,

Exporter, and Importers Bank, Exporters Bank.

It can broadly be categorized into two categories;

1. Sight Letter of Credit

2. Usance Letter of Credit

Sight Letter of Credit

This a secured type of LC. In this type of credit the bank

has to pay at the sight. The bank pays at the day, the shipment is

arrived & documents are presented in the bank. When the goods

are received, the bank takes these into its custody. These are not

released until customer does not make the payment.

Usance Letter of Credit

This is also a type of LC, but the bank is not as secured in

this case as in sight LC. The payment is not done immediately

after receiving the documents. Goods are also not taken in the

banks custody. The customer has only to show the documents

of his goods that he has received. In Usance, Letter of Credit the

payment is to be done on some pre-specified time. The purpose

of this LC is that the customer makes payment after selling those

Goods in some time period. This time period should not be more

than 180 days.

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This LC is an agreement that if the importer will not pay

than the bank will have to pay instead of him after the specified

time limit. If he does not pay, the customer is called defaulter

from the day after the time limit has expired. And his property is

taken under the banks custody.

Letter of Guarantee

Grantees issued by the bank are classified under twobroad categories.

A) Financial guarantee, where the bank guarantees thefulfillment of a financial commitment on behalf of customer and

B) Performance guarantees, where the bank guarantees the

performance of a contract or other work as specified in the

guarantee. These categories can be further subdivided into the

following types of guarantees.

1) Financial guarantees

Bid bonds, which are issued in lien of deposit of earnest

money while bidding for a tender. Under these guarantees the

bank is called upon to pay in the event of a breach of terms on

the part of customer.

2) Performance guarantees

Under these guarantees, the bank guarantees due fulfillment of

a contract undertaken by the customer. The amount of the

guarantee is usually up to the extent of the value of the contract.

3) Shipping guarantees

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Under which the bank issues guarantees in favor of the shipping

company to enable the importer to obtain delivery of the goods

without production of the bill of Lading.

TYPE OF SECURITIES

Primary Securities

Secondary/Collateral Securities

Primary Securities

Pledgeis a formal contract of security whereby the goods/documents

are deposited with the creditor or lender on condition that they are

redelivered to the depositor if the debt is repaid or can be sold if the

borrower defaults. In this case, the lender has the right to retain the

goods/document till the debt is paid.

Hypothecation the goods are kept as security with the Bank but

neitherthe ownership nor the possession is passed to the creditor.

The ownership or possession of the goods remains with the borrower;

however in case of defaults the Bank can take possession of the

goods.

Lien (Moveable property possessed to the lender cannot be sold incase of default).Lien is the bankers right to hold the property until the

claim on the property is paid. The bankers look at their lien as a

protection against loss on loan or overdraft or any other credit facility.

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In ordinary lien, the borrower remains the owner if the property, but

the actual or constructive possession remains with the creditors,

though he has no right to sell it.

Charge When immovable property of one person is made a security

for the payment of another person, and the transaction does not

amount to a mortgage, the latter person is said to have a Charge

on the property.

Secondary Securities

Mortgageis the transfer of an interest in specific immovable property

by the borrower (mortgager) to the lender (mortgage) as security for

the payment of debt.

Personal Guarantee When an application for an advance can offer

any tangible security, the banker may rely on personal guarantees to

protect himself against loss on advances or overdraft to the applicant.

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Working of the Credit Department

CREDIT PROCESS

There are Eight steps involved in the credit Process. First 4 Steps arerelevant to the Credit Marketing and remaining are with the Credit

Administration of the Department.

1. Customer Account is must for the Credit

2. Formal Loan/ Credit Facility Request

3. Verification and collection of basic information of the

Borrower/Business.

4. Preparation of Credit Proposal

5. Approval from Credit committee.

6. Facility Offering

7. Acceptance of facility offered

8. Security perfection.

CREDIT MONITORINGThe client can present his own account insurance policy as securityfor credit. When he presents his own account as security, hisaccount is blocked for the same amount, which the bank is grantinghim. When the facility is adjusted at that time, the blocking isreleased from the account. Clients can also use third partys account

for getting credit. Shares can also be kept as security in this casethese are verified and duly signed. These are kept separate to avoidtheft. The company whose shares are used is informed that its sharesare in the custody of the bank.

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Consumer Department

KASB Bank allows financing to salaried persons, self-employed

professionals and businessmen for meeting their personal, family and

household needs through convenient payment schemes to suit their

budgets. KASB Bank offers the following schemes:

KASB Shandar Car Financing

KASB Shandar Consumer Financing

KASB Shandar Personal Financing

KASB Shandar Home Financing

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Documents You Need To Provide:

Following Documents are required for Car, Consumer and Personal

Financing.

Copy of National Identity Card

Two passport size photographs

Paid Copies of utility bills

Employment certificate (For Salaried Persons)

Financial statement, company profile and copy of tax return

(For business and self employed professionals)

Bank statement for last three months

You Can Apply If You Are:

A permanent resident of the city where KASB Bank has a

branch.

In possession of a National Identity Card.

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Between the age of 21 to 60 years (for Consumer Finance)

and 21 to 55(For Car, personal and home Finance).

In business or continuously employed in a permanent

position for 2 years (For Car, Consumer and personal

finance) and 3 years or more (For Home Finance).

Having minimum take home income or salary of Rs. 20,000

per month (for Home & Car Finance) and 10,000 per month

(for Consumer & Personal Finance). (Income of your

spouse may be combined with your income to determine

the repayment capacity.)

Maintaining a bank account with any bank.

KASB Shandar Car Financing

KASB Shandar Car Financing is the easiest means which

enables you to get a new vehicle of your choice, suitable for your

business and personal needs. Avail maximum advantages through

convenient payment installments to suit your budget.

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Salient Features:

Financing up to Rs. 1,200,000/-

Financing period from 36 months to 60 months

Comprehensive insurance from reputable insurance

company

Most economical monthly installment

Simple documentation and quick approval

KASB Shandar Consumer Financing

You can now purchase electronic and household appliances of

your choice through KASB Bank's Shandar Consumer Financing

Scheme. Gain maximum advantages through our tailor made product

for your convenience.

Salient Features:

Simple documentation.

Quick approval

Flexible repayment period from 6 months to 24 months.

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Economical installments to suit your budget.

No processing fee.

Free Credit Insurance Cover.

KASB Shandar Personal Financing

You may require funds for your emergent financial needs for

meeting educational expenses, marriage or traveling expenses

through KASB Shandar Personal Loan Scheme. You can avail the

facility and can pay back within 24 months in affordable monthly

installments.

Salient Features:

Financing from Rs. 20,000/- to Rs. 100,000/-

Financing period from 06 months to 24 months

Free credit protection cover

Most economical monthly installments

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Simple documentation and quick approval

KASB Shandar Home Financing

Buying or constructing a home is likely to be the biggest

financial investment of your life! KASB Bank Shandar Home

Financing Scheme is theeasiest means which enables you to buy,

build or renovate a bungalow, a townhouse or an apartment of your

choice, suitable for you and your family needs.

The facility is available at an affordable cost and convenient payment

terms with the flexibility to match the individual's need and cash flow.

Salient Features:

Facility available for purchase, construction or renovation of

your home.

Financing up to 70% of the cost of the house or an

apartment or up to Rs. 7.5 million, whichever is lower.

Repayment period from 3 years to 15 years.

Facility available at fixed or variable rates.

Most economical monthly installments to suit your budget.

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Flexibility to pay off some or the entire mortgage at

anytime, without any additional cost to the borrower.

Insurance of the borrower and the property during the

period of financing will protect the investment from

uncertainties.

Documents You Need To Provide:

Copy of National Identity Card.

Two recent passport size photographs.

Financial statements, company profile, copies of tax return

and wealth statement for the last 2 years (for businessmen

and self employed professionals).

Employment certificate (for salaried persons)

Photocopies of title documents of the property to be

purchased, constructed or to be renovated.

Bank Statements for last 6 months.

Copies of last paid bills for telephone, gas and electricity.

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Copies of credit card bills for last three months.

LeasingKASB Bank provides medium to long-term lease facilities to

industrial, commercial and service organizations for expansion,

balancing, modernization and replacement of existing facilities for:

Industrial plants / machinery and equipments

Construction / agricultural machinery and equipments

Private and commercial vehicles

Medical, office and communication equipments

Leasing is beneficial for the following reasons:

Leasing frees working capital for more productive use

Leasing arrangement is simple to negotiate and administer

Leasing provides off balance sheet funding

Lease rentals can be structured to accommodate the

operational cash flow pattern of the lessee

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Most expenses associated with the leased equipment can

be incorporated in the lease and amortized over the lease

period

Leasing provides hedging against inflation

KASB Bank provides customized lease financing options on

most competitive terms to suit the business needs of the lessee.

Lease rentals can be uniform or structured and fixed according to the

project requirements of the lessee. Our strength lies in quick

completion of transactions.

Our financing schemes are easy to understand and without any

hidden costs. Our staff is professional and extremely customer

friendly.

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RECOMMENDATIONS

From the quantum of the profit and its financial data, it can easily be

judged that after acquisition of KASB BANK by the KASB Group,

the Bank is not performing well. Its deposits are not growing day-by-

day and so its profitability. The controlling body is responsible for the

productive performance of the bank.

Following are my observations and suggestion to improve the

efficiency for the development of the bank

1-Marketing Efforts

Bank must let potential customers know that all attractions for

banking exist. This is done by advertising on television/ T.V. cable

and obtaining press coverage, in conjunction with direct mail, window

displays, leaflet in branches and in appropriate other locations (such

as hotels, shops, etc.) and including leaflets in statement of accounts

sent to existing customers in the hope that they will tell potential

customers about the services provided by our bank.

2-Flexible Account Policy

There should be flexible account opening policy in which the

account can be opened according to the customer willing-ness.

3-Reasonable Services Charges

There should be competitive services charges to preserve

maximum deposits.

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4-Customer Service

There should be a separate customer service department in

every branch.

5-New Consumer Products

Some personal sector customers prefer not to come to branch.

They increasingly want to deal with the bank in other ways, such as

home banking or use of Automated Teller Machines (ATMs), which

need to be at the branch or some important shopping places. One

way to retain the personal sector customers is to offer a wide range of

services such as tax advice, free life insurance equivalent to amount

Deposited, shares portfolio management, fund management facility,

etc. complimentary to the core services. Banks must have a slightly

different mix of services and mean of providing these such that

customers can choose the mix that suits them best.

6-Advance Criteria

The advance should be on merit basis and there should be also new

loaning modes as per demand and market trend.

7-Behavior Modification of Staff

Arguably, there has been a little encouragement from banks to

persuade people to open a bank account. Opening hours are

restricted, and there is a commonly held belief that banks operate for

their convenience and not for the convenience of the customers. So

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there should be proper reward criteria to the bank branches about the

maximum deposits.

8-Hiring of Talented Staff

KASB BANK should hire talented staff for improving the performance.

9-Proper Management of Banking Hours

There should be proper banking time management.

10-Change the Nature of WorkMost of the bank employees are sticking to one seat only with the

result that they become master of one particular job and loose their

grip on other banking operation. In my opinion all the employees

should have regular job experience all out-look towards banking.

Their promotion policy should be adjusted accordingly.

12-Refresher Courses

Refresher courses for the staff are most important in any international

organization. All the employees should have these courses according

to their requirement. Foreign experts can also be called for this

purpose.

13-Incentive to Employees

Bank should give some more incentive to its employees in order to

remove the conflict between lower and higher officers and should try

to improve the working condition of the bank. Such system should be

designed that every employee who has some problems with his

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officers can communicate to the higher management and some steps

must be taken to improve that so that the employee may retaliate with

bank for longer time.

14-Reward and Punishment

It is human nature one goes behind reward and incentives while and

try to avoid from punishment. Like wise in commercial institution like

bank, this system should be introduced with full force means achieve

smart, educated skilled, self spoken and well versed staff personal,

should be reward and appreciated, while on the other hand lazy,

lethargic, heard, rough-dealers and ill mannered must be warned

penalized and punished but this all should be on merit and

considering the policy of honesty is the best policy and not due to

some personal liking, disliking prejudice. It is therefore suggested

certain schemes and checks may be introduced in banks to increase

efficiency through reward and punishment system.

15-Survival Of The Fittest

It is not nearly a sentence or idiom Right Man for the Right Job

according to his qualification, profession skills and experience with

the job specification must be considered while posting and placing

the employees.

It should not be like that a person who may be a very good worker but

possessing lack of managerial capabilities should be posted as

manager. But as second place in command or some heavy working

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department wished persons together with managerial qualities and

manners in the same fashion should be posted and placed as

manager.