Assignment#1 Submitted to: MISS NARGIS SUBMITTED BY: ZAINAB KHAN CUORSE: FINANCIAL MARKETS ROLL.

NO: 21 CLASS: BS(BA) 7th A DATED: 25th OCT 2010

FAYSAL BANK OF PAKISTAN

Faysal Bank Limited was incorporated in Pakistan on October 3, 1994, as a public limited company under the Companies Ordinance, 1984. The Bank's shares are listed on Karachi, Lahore and Islamabad Stock Exchanges. The Bank is engaged in Commercial, Consumer and Corporate Banking activities. The Bank has a branch network of 136 branches (December 2009: 133 branches) including 10 Islamic Banking branches (December 2009: 6) and 2 (December 2009: 2) sub-branches. The registered office (head office) of the Bank is situated at Faysal House, ST-02, Shahrah-e-Faisal, Karachi. The Pakistan Credit Agency Limited (PACRA) and JCR-VIS Credit Rating Company Limited have determined the Bank's long - term rating as 'AA' and short term rating as 'A1+'. Faysal Banks asset base as of 30 th June, 2010 was over Rs.175 billion, about 3,000 employees with a network of over 135 branches in 38 cities. Currently it is the 12th largest bank in Pakistan, by assets. The majority share holding of Faysal Bank is held by Ithmaar Bank B.S.C

SOURCES OF FUNDS:
Faysal bank of Pakistan has a variety of sources for fund access. The main source of funds is the variety of deposits they offer to their customers. The main deposits of Faysal bank are: Faysal Sahulat-current account Faysal moavin-saving account Faysal Izafa-term deposit Faysal market link-saving account Faysal saving account Basic banking account FCY plus-foreign currency account Mehfoz sarmaya- foreign currency account Rozana munafa plus-saving account Faysal premium Faysal bank with the mission of innovation and values of responsiveness offer their customers mainly three types of deposits; current, saving and term deposit account. The current account Faysal Sahulat requires a minimum of Rs.5000 balance. On The saving accounts Faysal moavin, market link, premium, and Rozana munafa plus, the profit is calculated on daily basis and paid monthly. Except the Fayasal saving account where the profit is calculated on monthly basis and paid semi-annually. The market link accounts have an additional feature of the linkage of profit rate with Karachi-inter bank offer rate. The minimum balance requirement is from Rs.10000 to 500000on these saving accounts. The foreign currency account Mehfoz sarmaya can be opened in any of three types of account offered by Faysal bank. While FCY account is the saving account. The minimum balance requirement range from 500 to 1000, and could be opened in Euro, Dollar and Pound. The Basic Banking account is for the salaried persons which can be

opened with a Rs.1000 and easily withdrawn from the ATM cards anytime. Finally the term deposit account of Faysal bank-Faysal Izafa is the most flexible of the accounts where you have the option of receiving the profits on monthly, semi-annually or annually basis. All the above accounts have the facility of withdrawal from ATM and some of them can also be easily withdrawal from pocket mate Visa debit card of Faysal bank. The SMS alert facility is also provided by Faysal bank on all accounts to keep informing their customers about their account details. The profit (interest) rate on Faysal saving, Faysal premium, Faysal Rozana munafa plus is 5.00% on the investment of .Rs 50,000,001 to Rs. 125,000,000 above that the profit rate is 5.50%. On Faysal Moavin account the minimum profit rate is 5.00% on investment up to Rs.500000, and maximum of 7.50% on investment up to Rs.5000000. On all these accounts the profit is calculated on daily basis. The Faysal market link account is linked to KIBOR and the last year results reveal that the highest interest rate is on the investment range of Rs.50, 001 to 1,000,000 with a three month KIBOR of 8.50%. On these accounts, Minimum profit rate on tiers between Rs. 5 million to Rs. 15 million will not fall below 7.75% p.a. and Maximum profit rate will not go beyond 15.00% p.a. The term deposit account has the feature that with the increase in the deposit and time period the rate of profit also increases. Like on the investment up to 24999 the interest rate is 1.75% on 1 month and 5.50% for 2 to 5 years. While the balance, above 25000 will give a profit of 7.00% on 1 month investment and 10.50% with an investment period of 2 to 5 years.

USES OF FUNDS:
Faysal Bank of Pakistan uses the funds in a number of different ways. The main use of fund was in Consumer and Agri finance, which consists of the following. Faysal Car finance Faysal House finance. Faysal personal finance. Faysal khushal Kisan scheme. The Car finance scheme of Faysal bank allows very easy access to the borrowers. The tenure is up to 5 years, and the interest is % annually plus monthly KIBOR rate. Qualifying income to debt ratio 60: 40 (i.e. maximum installment not higher that 40% of your disposable income which includes all credit commitments including Faysal Auto Finance facility). While the home finance scheme is available for buying, building and renovating the home. The maximum financing given by the Faysal bank is 70% of the property value, with the payments in monthly installments within 20 years. The personal finance is available up to Rs500000 and payable in equal monthly installments up to 60 months. The applicant must have 3 years of employment, or established business, with a monthly income of 30000. Faysal khushal kissan scheme offers specialized products for the agricultural sector. All Faysal Bank branches located in agricultural areas of Pakistan are equipped to help local farmers improve yield and methods of farming by offering timely and affordable financing for all purposes detailed in SBPs list of eligible items for Agricultural Loans. It offers production loans for agricultural inputs, transport etc, development loans for farm power farm machinery, farm irrigation. Financing is

available for livestock farms, poultry farms, fish farms and dairy farms. The finance is made available based on nature of business, with tenure up to 5 years. Corporate Banking services: Corporate banking services standard Loan & Trade Financing Facilities including: Short Term & Long Term Funded & Non-Funded Facilities Trade related products including * Letters of Credit and Bank Guarantees * Pre & Post-Shipment is only for exports loans * Discounting of local & foreign trade bills Cash Management services. The corporate finance scheme provide short and long term loans to their customers and to the small and medium enterprises. Faysal bank also have the feature of investment banking. This consists of project and structured finance for green field projects, Debt capital markets for corporate relationship, equity and advisory for merger & acquisition and finally the agency and trustee for acting and a custodian and as an intermediary between customers and financial institutions. Beside all these the Faysal bank new launch is Faysal Aik faisla. The new launch has introduces the family assurance plan, education plan and saving plan. These plans serve to meet the needs of customer and provide premium for security, educational and future related needs. So summing up all we can say that Faysal Bank Limited is providing the best services to the customers, to meet the financial needs and contribute as a financial intermediary in building up the infrastructure of the economy of Pakistan.