Financial Institution

(Assignment)

Presented By
Muhammad Ahsan Akram (1458)

Presenter To
Ms Atia Alam
 Introduction

What is Bank?
A bank is a financial institution that accepts deposits from the public and creates
credit.[1] Lending activities can be performed either directly or indirectly through capital
markets. Due to their importance in the financial stability of a country, banks are highly
regulated in most countries.

Banks act as payment agents by conducting checking or current accounts for

customers, paying cheques drawn by customers on the bank, and collecting cheques
deposited to customers' current accounts.

Banks can create new money when they make a loan. New loans throughout the
banking system generate new deposits elsewhere in the system. The money supply is
usually increased by the act of lending, and reduced when loans are repaid faster than
new ones are generated. A bank can generate revenue in a variety of different ways
including interest, transaction fees and financial advice. Traditionally, the most
significant method is via charging interest on the capital it lends out to customers

Banking in Pakistan

Banking in Pakistan first formally started in Pakistan during the period of British
colonialism in the South Asia. After independence from British Raj in 1947, and the
emergence of Pakistan as a country in the globe, the scope of banking in Pakistan has
been increasing and expanding continuously. Pakistan's oldest bank is the State Bank
of Pakistan, which is also the central bank of the nation.
Categorization Of Banking In Pakistan

 Central bank
 Big Four
 Commercial banking
 Microfinance banking
 Islamic banking
 Foreign banks
 Defunct banks

Faisal Bank
Faysal Bank is one of the leading commercial banks in Pakistan with a well-entrenched
name in the local market. The operations of FBL are driven with the objective to offer
Sharia compliant banking services to its clients. FBL comprises an online network of129
branches.

The DMI group headed by H.R.H. Prince Mohamed Al Faisal Al Saud is registered in
the Bahamas with main offices in Geneva, Switzerland.

Establishment
Faysal Bank was incorporated on October 03, 1994 in Pakistan as a public limited
company quoted on Karachi and Lahore Stock Exchanges. Taking over the Pakistan
operations of Faysal Islamic bank of Bahrain, operating in Pakistan since 1987, FBL
commenced operations as a local commercial bank on January 1, 1995. Effective
January 1, 2002 Al Faysal Investment Bank Limited (“AFIBL”) merged with Faysal Bank
and as a result, the bank now stands co-owned by subsidiaries of the DMI Group
including Shamil Bank of Bahrian E.C.

Mr.Frook Bengali is the president and chief executive officer of Faysal Bank and
H.R.H.Prince Muhammad Al-Faysal Al Saud is the Chairman of Faysal Bank .The
registered office of Faysal bank is in Karachi.
Faysal Bank (FBL), a leading commercial bank in Pakistan, is partnering with System
Access Singapore, a global universal banking solutions provider, to implement the full
suite of the latest version of Symbols across its branch network and head office.

The Symbols Core Banking Solution will serve as the core transaction processing
engine to support Deposits, Lending, Trade Services, Payments, Treasury, and
Investments business verticals of the bank.

FBL’s principal activity is to provide commercial banking services through its branch
network. The banking services include corporate banking, consumer banking, retail
banking, trade finance and investment banking services. The operations of the group
are conducted through 46 branch offices located in all major cities of Pakistan.

Vision
“Excellence in all that we do”

Mission Statement
Achieve leadership in providing financial services in chosen markets through innovation.

Objective
To offer the market banking products and services which are needed,
convenient, marketable and Shariah compliant.

To grow as an institution with prudent growth and profitability in view.

 To build relationships based on trust and mutual benefit with customers and
shareholders.

To maintain a highly efficient and motivated in employee base.

To continue being a socially conscious organization.

Products & Services

1. (Deposit Products)
The Faysal Sahulat Account
The Faysal Saving Account

Rozana Munafa Plus Account

Faysal Premium Account
Faysal Basic Banking Account
Faysal Izafa

Mahfooz Sarmaya
FCY Saving Plus
Faysal Marketline

Faysal Moavin

Consumer Finance Products

Faysal Car Finance

Faysal Home Finance

Faysal Personal Finance
Faysal Khushaal Kisan Scheme
Retail Services

Faysal Pocketmate

Faysal Lockers
Transfer of Funds

Non-Stop Banking

Internet Banking
Sms-Alert Service

Corporate Banking Services

Corporate Financing
SME Financing
Trade Financing

Treasury and Capital Market

Investment Banking

Cash Management

Financial Institution
Barkat Islamic Banking
Faysal Bank introduces Barkat Islamic Banking, with branches dedicated to purely
shariah compliant banking transactions.

Barkat Islamic Banking staff is well experienced and committed to promoting the cause
of shariah compliant Banking. Faysal Bank’s shariah advisor is a fully qualified mufti
who oversees all business of these dedicated branches and ensures its compatibility
and compliance with shariah principles. Faysal bank has 7 Islamic branches in
Pakistan.Producya are followings;

Current Account

Saving Account

Foreign Currency Account

Basic Banking
Investment Banking
Investment Certificate
Ijrah
Murabaha

Habib Bank Limited

Introduction
HBL was the first commercial bank to be established in Pakistan in 1947. HBL is one of
the largest Banks of Pakistan with having 1,450 branches across the country & a
customer base exceeding five million relationships & having total assets of Rs.
434,931,930,000.

The Government of Pakistan privatized HBL in 2004.

• Mohammad Ali Habib was the founder of this bank

 • The first branch of HBL started functioning on 30th August, 1941 at Muhammad
Ali Road Bombay, where Quaid-e-Azam Muhammad Ali Jinnah first of all opened
his personal account

• With a domestic market share of over 40%, HBL was nationalized in 1974.

• On December 29, 2003 Pakistan's Privatization Commission announced that the

Government of Pakistan had formally granted the Aga Khan Fund for Economic
Development (AKFED) rights to 51% of the shareholding in HBL, against an
investment of PKR 22.409 billion (USD 389 million).

Vision

“Enabling people to advance with confidence and success”

Mission Statement
“To make our customers prosper, our staff excel and create value for
shareholders”

OBJECTIVES OF HBL
• To earn profit for the Bank itself and for its shareholders.

• To promote and boost up business sector inside the country.

• To provide employment opportunities to people.

• To help in development and industrialization of the country.

• To provide loan and advances to help out in self employment schemes.

Functional responsibilities of the Banks are broken into seven groups know as
  International Operations Group
 Corporate Banking and Treasury Investment Group
 Retail Banking and Operation Group
 Finance, Audit and Administration Group
 Assets Remedial Management Group
 Credit Policy Group
 Corporate Bank, Financial Institutions and Project Finance Group

Products & Services

(Individual Customers)

 Deposits Account
 HBL Car loan
 HBL Car To Car
 HBL Credit Cards
 HBL Debit Cards
 Bancassurance
 HBL Fast Transfer
 HBL Phone Banking

(Business Customers)
 Corporate Banking
 Commercial Banking
 Investment Banking
 Zarai Banking
 Commercial Banking

HBL’s Commercial Banking Group targets medium sized companies with a turnover of
at least PKR 50 million.

HBL business units are located in Karachi, Lahore, Faisalabad, Sialkot, Gujranwala and
Peshawar. Each unit is dedicated to service business clusters located within these
cities.

HBLs have the ability and the resources to meet the needs of your business with our
pro- active, responsive and experienced Relationship Managers who are committed to
understanding your business.

Services:

 Working Capital
 Procurement of Inventory
 Receivables
 Procurement of Machinery
 Expansion of production facilities
 Import of raw materials
 Exports
 Guarantees

Corporate Banking
Services

 Working Capital Finance, including Overdraft, etc.

 Pre and Post Shipment Export Financing (PKR and USD based)
 Import Financing (PKR and USD based)
 Receivable Discounting
 Islamic Banking facilities
 Cash Management Services

 Letter of Credit.
Cash Management
HBL offers a comprehensive platform for customers to avail Cash Management
Services throughout Pakistan. HBL Cash Management Services reduce the cash
turnaround of your company, thereby making it cost efficient.

2)Islamic Banking
Islamic Banking is a growing market segment that offers attractive opportunities to
potential and existing customers. At HBL, Islamic Banking offers Shariah compliant
products and services to meet the short and long term requirements of business, trade
and industry.

Shariah Compliance
HBL Islamic Banking products are in strict compliance with the tenets of Shariah and
bear Shariah Compliance Certification from an independent Shariah Advisor.

Conclusion
Both Bank are offer current account products with same feature, but the minimum
deposit vary. Faysal Bank has higher volume of products as compared to HBL. Both
banks has to set the lowest limit of deposit so that the person with low salary and wage
can access it.