A financial institution that accepts deposits, extends credit, and channels the money into lending activities. It generates profits from transaction fees on financial services and on the interest it charges for lending
Central Bank The central bank is the head, the leader and the supervisor of the banking and monetary system of a country”. Central bank is the symbol of financial sovereignty and stability of the country
Introduction Bank Al Habib Two Hundred and Fourty Nine branches Head Office is in Multan main Principal Office is located in Karachi history: DAWOOD HABIB GROUP, is the sponsor of Bank AL Habib Limited as a Public Limited Company in October 1991 started banking operations in 1992.
Many Services of a Bank
Financial services provided by a bank
Services that might be of personal benefit
The impact of state and federal regulations upon the security of a bank
REMITTANCE OPTIONS TO SEND AND RECEIVE MONEY 1. Money Transfer Organizations 2. Bank Transfers 3. Hand Delivery 4. Mail 5. Post Offices 6. Stored Value Cards
Bank cards that allow for the payment of goods and services to be subtracted directly from a bank deposit account.
Can be used with merchants that take major credit cards—known as point of sale (POS) transactions.
Bank cards with preset, limited value.
Used to pay for goods and services.
Alternative to cash.
ELECTRONIC BANK SERVICES • Direct Deposit • Transfers between Accounts • Transfers to a Third Party • Online Banking • Bank by Phone • ATM
REGULATION OF ELECTRONIC
Electronic Fund Transfer Act
Protects consumers using any type of electronic
banking from loss and protects their privacy.
Offer consumers a record or receipt for all computer
Investigate errors and report to consumer within ten days of error notification.
Customers are responsible to report any errors.
SHOPPING AROUND (THINGS TO ASK ABOUT WHEN OPENING A CHECKING ACCOUNT) SERVICES Location of bank Location of ATMs Banking hours Minimum balance required Minimum transactions or limits Interest-bearing accounts? Other COSTS Non-primary bank ATM transactions In-branch transaction fees Per-check fees Other checking fees Overdraft protection Printing of checks
OVERDRAFTS AND BOUNCED CHECKS
Overdrafts and bounced checks occur when you complete a financial transaction (e.g., write a check) for more than what is available in the account. Your financial institution may pay the amount and charge you a fee, known as an “overdraft fee” or a “nonsufficient funds fee.”
Tip: Avoid overdraft or non-sufficient funds fees by making a habit of monitoring the balance in your checking account.
Purpose of a savings account
Shopping for a savings account
Applying for a savings account
Monthly bank statement checkup
REASONS TO SAVE
SHOPPING FOR A
Factors to consider:
Minimum Account Balance Requirements
Fees and Service Charges
Types of advances
Small and medium enterprises(SME’s)
Commercial banking Consumer financing means any financing allowed to individuals for meeting their personal, family or household needs. Consumer financing has expanded in Pakistan at an unprecedented rate over last seven years
Consumer financing is further segregated into the following core categories
Easy to apply
Minimum Loan: Rs 250,000, Maximum Loan: Rs. 2,500,000
Maximum loan period 5 years for new cars.
Affordable monthly installments.
Convenient repayment modes
No Pre-payment penalty.
Choice of reputable insurance companies at attractive terms.
Personalized customer service. .
Auto Loans Eligibility You can get a car loan from Bank AL Habib to purchase the car of your choice if you are:
Pakistani National Identity Card Holder.
Over 20 years of age (Maximum 60 years in case of salaried and 64 in case of a business person at the time of maturity of the loan).
Salaried person, Businessman or Self employed.
Minimum Net Salary 15,000/=
Down Payment: 10% of the invoice value of the Car
Personal loan Personal Loans mean the loans to individuals for the payment of goods, services and expenses and include Running Finance / Revolving Credit to individuals. Bank AL Habib Limited as one of the pioneer bank believes in individual values and servicing the customer is our main objective, whether the requirement is for buying durable goods for personal use or for any other financial need.
Eligibility Criteria - Pakistani National - Salaried or Self Employed - Minimum 23 and Maximum 57 Years Old - Minimum Net Salary 10,000/= Salient Features Finance Amount - Minimum Rs. 50,000/= to a maximum of Rs. 500,000/= Finance Tenure - Three-Five Years
Home loans Three categories Home Buying Home Construction Home Improvement
Pakistani National - Salaried or Self Employed - Minimum 23 to Maximum 60 Years Old - Minimum Net Salary Rupees 20,000/=
Salient Features Finance Amount
- Maximum amount Rs. 10,000,000/=
- Flexibility of up to 20 Years financing
The two major segregations of bank al Habib commercial financing are: • Funded financing • Non funded financing Funded financing It is the type of financing in which bank provides the cash directly to the borrower. The cash can be used for any purpose by the borrower Demand finance • Cash finance • Running finance • Pre-ship finance • Post-ship finance Commercial Financing
Demand finance Demand finance is issued for a specific project. This meets the requirement of big customers to setup factories. Markup is charged on semiannual basis. The security in this type of loan is fixed asset. Bank al Habib like other bank is dealing in it but it is not dealing in some sectors which are face an economic crunch like cotton industry. Cash finance This type of finance is specified for seasonal requirements of business people for example the cotton crop, rice crop and sugar etc. markup is charged on quarterly basis. Bank al Habib is offering it by pledging the items.
Running finance It is finance to fulfill the daily requirements. It is a business loan in running finance the account holder is given the facility to withdraw the amount on credit. The markup is charged on the days Pre-shipment & post Finance It is short term finance taken for inventory and production costs associated with manufacturing goods being exported. The supplier may require payment of the goods before shipment. Pre-shipment
Sectors which are really targeted by BAHL
BAHL adopt very conservative policy in advancing loans. That is way it target only those businesses which are highly profitable. Some of such sectors are;
1. Merchandising Business
2. Departmental Stores
3. Small manufacturing units like dairy businesses.