JS Bank (Evaluation of the Performance Appraisal System)
Internship Report version 2
1. Faysal bank (Distribution Branch)
Internship Report
Submitted To:-
Human Resource Department
Submitted By:-
Fahad Khalid
2. ACKNOWLEDGMENT
By the grace of Allah, who has enabled me to do this entailing hard work. It is a matter of
pleasure and privilege for me to complete the internship in Faysal Bank, Upper Mall
Branch (331), 310-Upper Mall Shahrah-e-Quaid-e-Azam,Lahore.
I would like to thank Muhammad Ahmed Sheikh for giving me the opportunity for doing
this internship. The work helped me apply the theoretical concepts and learn the practical
aspects of a bank. I would also like to thank Mr Muhammad Umar for being my
supervisor during my internship.
I would also like to list the people who were kind enough to guide me and support me
during the period of my internship:-
Mr Jawad Shoukat (Branch Services Officer)
Ms Nadia Tanveer (Branch Services Officer & Locker Custodian)
Mr Muhammad Ali (left) (Branch Services Officer)
Mr Imran Khilji (Senior Branch Services Officer)
Mr Ahmad (Relationship Manager)
Mr Shahzad Ahmed (Rider)
And at last I would like to thank my family for their continuous care, trust and prayers for
me.
4. Faysal Bank | Bank On Ambition 1
Internship Report
1. INTRODUCTION
Faysal Bank Limited was incorporated in Pakistan on October 3rd, 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, Retail, Corporate and Islamic banking activities. The Pakistan Credit Rating
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+’.
Now, this means that ‘AA’ ratings denote a very low expectation of credit risk. The
capacity for timely payment of financial commitments. This capacity is not significantly
vulnerable to foreseeable events. This is a very high rating credit quality.
While ‘A1+’ Obligations supported by the highest capacity for timely repayment.
Faysal Bank’s footprint now spreads over more than 80 cities with over 270 branches.
With business assets in excess of PKR 450 billion, placing it amongst the top ten
banks in Pakistan. Faysal Bank’s ambition is to provide par excellence service to its
customers while meeting their financial needs.
1.2 OWNERSHIP & HISTORY
Faysal Bank is a public limited company listed with Karachi Stock Exchange. Faysal
bank Limited is subsidiary of Ithmaar Bank of Bahrain. Faysal Bank started operations
in Pakistan in 1987, first as a branch set-up of Faysal Islamic Bank of Bahrain and then
in 1995 as a locally incorporated Pakistani bank under the present name of Faysal
Bank Limited. On January 1, 2002, Al Faysal Investment Bank Limited, another group
entity in Pakistan, merged into Faysal Bank Limited which resulted in a larger,
stronger and much more versatile institution. Ithmaar Bank B.S.C, an investment Bank
in Bahrain is the ultimate holding company of Faysal Bank. The remaining
shareholders comprise of general public, NIT and other Pakistani institutions.
The Faysal bank of the upper mall road have quite a history because before this branch
310-Upper Mall Shahrah-e-Quaid-e-Azam, Lahore.
5. Faysal Bank | Bank On Ambition 2
Internship Report
it was operated by two other banks namely Abn Amro till 2009 then it was taken over
by RBS till 2011 and finally Faysal bank took over and merged near Faysal bank
branch. The merits are for Faysal bank is that they owned the building which is exactly
opposite to Gymkhana and the lockers are quite unique and highly demanded by
customers.
1.3 VISION STATEMENT
“Excellence in all that we do”
1.4 MISSION STATEMENT
“Achieve leadership in providing financial services in chosen markets
through Innovation.”
1.5 CUSTOMER ENGAGEMENT METHODLOGY
Faysal bank limited uses Gallup organization’s research to see as to how they deal
with customers because satisfying customers nowadays is nothing. Faysal bank wants
to delight customers in order for them to set themselves apart. In other words,
differentiating strategy.
7. Meeting with confidence.
8. Treating customer with integrity.
9. Provide products which make the customer proud.
10. Provide irresistible product which cannot be replaced by others.
Hence, Solitaire department was created to make customers feel as king when they
enter this particular place within the bank. Gallup’s research created three
powerful tools:-
1. Operation Excellence.
2. Employees Engagement.
3. Build loyalty.
310-Upper Mall Shahrah-e-Quaid-e-Azam, Lahore.
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2. DEPARTMENTS ENGAGED
I was engaged with following departments of Faysal bank during my internship:-
Locker department.
Customer Relationship Management (RO & RM).
Operation department.
2.1 LOCKER DEPARTMENT
The locker department is supervised by the locker custodian which is Ms Nadia
Tanveer. The lockers are divided into two portions which combined are about
1406 lockers:-
Abn Amro (1336)
Faysal Bank (70)
The lockers are available in different sizes with different coverage of insurance &
their per year charges:-
Small (Rs. 2,250/- per annum) (Rs. 500,000)
Medium (Rs. 3,500/- per annum) (Rs. 800,000)
Large (Rs. 5,000/- per annum) (Rs. 1,200,000)
Now, a customer must have an active account in order to open a locker or operate
a locker. For new customers, they are required to:-
Fill application form
Specimen signature card
Copies of CNIC
The key charges Rs. 2100 per locker and they have to verify by writing that they have
received the key envelop sealed at the back of their application. The locker breakage
charges Rs. 4000 approximately but it can vary from vendor to vendor plus a
customer has to submit an application which shall be approved by BSM/BM. When a
customer arrives and departure after operating a locker, both should be recorded and
time stamped on safe deposit locker access.
310-Upper Mall Shahrah-e-Quaid-e-Azam, Lahore.
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When signing off the BSM is required to physically visit the locker facility and lock
the safe’s door while reviewing that all files are maintained and all the data on MIS
is updated.
Government securities are issued by the locker custodian and the process is basically
centralized. There are two types of Government securities & both have their merits:-
Special Saving Certificate (S.S.C)
Defence Saving Certificate (D.S.C)
S.S.C D.S.C
Maximum Tenure is 3 years
Profit is due every six months
It has an option to extract profit while
keeping the face value invested using
Profit coupons book issued with the set of
relevant certificate.
Account holders only have the option
of buying and selling
Tax are deducted according to the
status that is if NTN then 10%
otherwise for Non – NTN then 17.5%
Zakat is deducted on Face value but can
be stopped if provided Zakat certificate
Maximum Tenure is 10 years
Profit is due on yearly basis
It does not have an option. This means
that the profit plus face value will return
to the customer.
Account holders only have the option
of buying and selling
Tax are deducted according to the
status that is if NTN then 10%
otherwise for Non – NTN then 17.5%
Zakat is deducted on Face value but can
be stopped if provided Zakat certificate
2.2 CUSTOMER RELATIONSHIP MANAGEMENT (RO & RM)
This department fall under the supervision of Muhammad Sheikh Ahmad (BM) and I
was guided by Mr Ahmad (RM) who is involved with the asset side of the business
that is dealing with loans and related product of loans. Basically, he first discussed the
criteria of how to offer the products assigned to him by the bank. The criteria are that
there are two types of customer eligible for loans & related products:-
Salaried
Business
310-Upper Mall Shahrah-e-Quaid-e-Azam, Lahore.
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Internship Report
For the salaried customer, bank has a table in which it categories the customer
and according to which it evaluates whether it is feasible or not:-
Category A (Nestle, LUMS, PTC, etc)
Category B (BNU, Netsol, etc)
Category C (Local business, Restaurants, etc)
Other than that, relevant documents are requested from the customer. Then the
customer’s name is run against the CPL (Concern Party List). Their credit history
is reviewed and even after that approval is required from head office.
Further, he told me about the three products offered by Faysal bank to
facilitate customer:-
BTF (Balance Transfer Auto Loan Facility Credit Card
Facility)
It is a revolving line Citizenship is required
Transfer all your Proof form the company is
outstanding on BTF at required were you are
lower rate working.
Pay mark-up on utilized Loan tenor can be from 1-5
amount years.
Lower mark-ups then Single borrowing and co
credit card borrowing is allowed when
income clubbing but for
ownership only spouse is
allowed.
Mark-up range 30%-34% Depends on your salary
and reference, it can go
maximum up to 90% of the
face value.
Easy access and secure Used cars can be purchased
payments based on the new limits.
It was launched in
2005. Mark-up is 42%
Limit is based on different
types of card which are
blue gold and platinum.
Reward points which are
earned by spending Rs50
=1point which can be
redeemed in a year.
Insurance is provided
ranging from business
cover to all-rounder.
High focused by
Faysal bank.
310-Upper Mall Shahrah-e-Quaid-e-Azam, Lahore.
9. Faysal Bank | Bank On Ambition 6
Internship Report
2.3 OPERATION’S DEPARTMENT
The major time of my internship was spending in this department. The Supervisor of
this department is Mr Muhammad Umar (BSM).This department is where were all
checks are sorted and send to the CPU located on Walton road for processing. It also
is responsible for the cash vault and its maintenance. It also receives and redistributes
the cash received from other branches.
During my time spend in this department, I was guided by Mr Muhammad Ali (Left)
(BSO) and Mr Jawad Shoukat (BSO). They were the ones who guided me about the
whole process starting from receiving the cheques till dispatching them to CPU.
Later, during my last two weeks, I was guided by Mr Imran Khilji (S.BSO) who told
me about how cash counter works. Although, I was not allowed near the cash counter
or the cash vault.
The following table will tell you different types of clearing:-
Clearing Description
Normal Clearing This clearing is usually taken between
9:30 Am to 2:00 Pm after which it is
dispatched to CPU. The fund is
transferred on the next day.
Same Day Clearing This is a unique clearing with conditions
that the branch that issues should be
registered as same day clearing branch
and the amount should be Rs.0.1 million
or above.
Inter-city clearing The instrument is send physically to the
branch because the branch is not online.
Outward Bank Collection (OBC) The instrument is send physically to the
branch because the city/town/village does
not have NIFT service.
3
rd
Day Clearing This clearing after 2:00 pm to 5pm and
the fund is transferred day after tomorrow.
310-Upper Mall Shahrah-e-Quaid-e-Azam, Lahore.
10. Faysal Bank | Bank On Ambition 7
Internship Report
In cash, I was told that there were three types of cash kept by the officer:-
Sorted Cash (Received from cash vault)
Unsorted Cash (Received from customer)
Soiled/damaged Cash (Received from customer)
There was also the issue of the insurance related to cash vault in case if the amount
exceeds the coverage then the bank has to inform and receive confirmation from the
insurance company to increase their limit. I learned about prize bond issues that each
month’s end, the bank has to return the bond to SBP or else they have to wait for shut
period to be over. Currency Transaction Report (CTR) is basically a report with KYC
which is viewed by both BSM and S.BSO about high value transfer of funds above Rs.
10 million.
I also learned about captured cards and how they are treated like if the customer does
not come for it then the card is shredded by the branch after 5 working days. Then,
cheque books & ATMs not pick by customers will be shredded after 45 days & 60
days respectively. I also learned about the stop payments, Pay order, Telegraphic
Fund Transfer (TFT), Real Time Gross System (RTGS).
3. CONCLUSION
My internship in Faysal bank has been an exceptional and world apart experience
because the things discussed in the university can never match the experience of seeing
things happening in front of you. Aside from the banking experience, I had an
opportunity to see what really happens when an employee leaves the organization and
his vacancy is filled by others. The conflicts, stress, delaying of the tasks etc were
some of the things that cannot be described in a book.
So, thank you Faysal bank and its staff for giving me this phenomenal experience
and helping me build my path to a hopefully successful career.
310-Upper Mall Shahrah-e-Quaid-e-Azam, Lahore.
11. Faysal Bank | Bank On Ambition 8
Internship Report
4. BIBLOGRAPHY
Internship report. Scribd. Taken from:
http://www.scribd.com/doc/22020482/Internship-Report-On-Faysal-Bank-
Limited-By-Naeem-Ahmed#scribd.
Faysal Bank. Faysal bank website. Taken from: http://www.faysalbank.com/.
All the images in this document were from Google Images.
@
All the work done in this report is solely done for the purpose of fulfilling the contract of internship with Faysal
Bank. Without prejudice to the generality of the foregoing paragraph, we do not represent, warrant, undertake or
guarantee that the use of guidance in the report will lead to any particular outcome or result. I will not be liable to you in
respect of any business losses, including without limitation loss of or damage to profits, income, revenue, use,
production, anticipated savings, business, contracts, commercial opportunities or goodwill of the company.
310-Upper Mall Shahrah-e-Quaid-e-Azam, Lahore.
