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FAYSAL Bank

Introduction:

Group Information
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. The DMI
group has been the leading contributor to the development of Islamic banking in
the world, particularly with regard to promoting new modes of investment
compatible with Islamic Shariah.

The group’s business comprises of three main sectors - Islamic Banking, Islamic
Investment and Islamic Insurance.

The DMI group has an extensive network of financial institutions stretching over
four continents, with well-integrated regional subsidiaries, enabling it to respond
to local business needs and conditions. Based on this geographical structure, the
DMI group companies act as a financial bridge between the world’s leading
financial centers and the Islamic countries.

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Board of Directors:
H.R.H Prince Mohamed Al Faisal Al Chairman
Saud
Farook Bengali President & CEO
Khalid Abdulla Janahi Director
Dr. Said Sa'ad Al-Martan Director
Ziad H. Rawashdeh Director
Sanaullah Qureshi Director
Shahid Ahmad Director
Tariq Iqbal Khan Director (NIT Nominee)

Executive Committee

Khalid Abdulla Janahi Chairman


Farook Bengali Member
Ziad H. Rawashdeh Membe

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Capital and Ownership:

The majority share holding of Faysal Bank Limited is owned by companies of the
Dar Al Maal Al Islami Trust (DMI) including Shamil Bank of Bahrain E.C. The
remaining shareholders comprise of the general public, NIT and other Pakistani
institutions. The Bank’s shares are quoted on the Karachi and Lahore Stock
Exchanges.

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Mission Statement:
Faysal Bank shares its mission statement with the DMI
Trust. Our mission being “The introduction of a just and
equitable financial system by being a world class multi-
purpose financial institution, providing a range of
specialized services, working on Shariah principles”.

Vision Statement:

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History:
Faysal Bank started operations in Pakistan in 1987, first as a branch set-up of
Faysal Islamic Bank of Bahrain and since 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. In fact it has the highest share capital amongst private
banks in Pakistan and is amongst the largest in terms of equity.

Faysal Bank Limited is a full service banking institution offering consumer,


corporate and investment banking facilities to its customers. The Bank’s
widespread and growing network of branches in the four provinces of the country
and Azad Kashmir, together with its corporate offices in major cities, provides
efficient services in an effective manner.

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Future Plans:

THE QUICK LINK TO YOUR BANKING SERVICES

Faysal Bank is constantly endeavoring to bring to its customers new and


improved products and services that provide efficient and effective solutions.
Faysal Connect is such a service for the corporate customers. Faysal Bank’s
web-based e-banking allows its customers to access its banking services via the
internet by using state-of-the-art secure technology.
Faysal Connect empowers corporate customers to conduct their daily business
tasks from anywhere and at anytime.

EXPERIENCE …

• Time Saving
• Convenience
• Control over your Finances
• Security

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Main Products and Services:

Products and Services

o Products
 Deposit Products (Accounts)
 The Faysal Sahulat Account
 The Faysal Savings Account
 Rozana Munafa Account
 Rozana Munafa Plus Account
 Faysal Premium and Premium Extra Accounts
 Faysal Izafa
 Mahfooz Sarmaya
 Consumer Finance Products
 Faysal Car Finance
 Faysal Housing Finance
 Faysal Finance

o Services
 Cash Management
 ATM and Debit Cards
 Travelers Cheques
 Inter-Branch Transfer of Funds
 Safe Deposit Lockers
 Non-Stop Banking

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Different Departments of Company:
Different departments of Faysal Bank are as under;
1. Operation Department:
Operation Department is subdivided into following 4 departments:
a. Remittance
b. Cash
c. Account Opening
d. Customer Service

2. Agri-finance Department
This department provides agriculture loans to the formers at nominal rates with
easy terms. It includes short term financing for fertilizers, seeds, pesticides etc
and long term financing for purchase of harvesting machines and installation of
tube-wells etc.

3. Credit Administration Department:


This department supervises the loans either given or received in the form of
deposits. It administers the conditions imposed at the time of delivering of loan
like security etc.

4. Marketing Department:
It peruse the customers to make business with the bank either in the form of
deposits or by applying for financing. Different toots and techniques of marketing
are used such as making contact personally with the customers, advertisement
through television, news papers and on the website.

5. Consumer and Finance Department:


This department provides loans to the ultimate consumer in the form of car
leasing, house financing and as well as personal loans. Besides this it also
administers the loans already given.

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6. Documentary Credit and Foreign Trade Department:
This department provides assistance to customers regarding foreign trade, such
as it deals with the international companies and provides gods and services
required by customers. The kind of assistance it provides includes letter of credit
facility, guarantor and also helps in foreign remittances.

Human Resource Department

Main HR Department is located at Faysal Bank Head Office Karachi. There are
HR Co-coordinators in each branch of Faysal Bank which supervises the
applications and practices of HR department. If in any branch of Faysal Bank, a
particular vacancy is to be filled, the applicant will make contact to the Branch
Manager of that particular branch which will refer the candidate to the Head
Office. All the recruitment and selection process will be will be conducted at Head
Office. Then the Head Office selects the candidate on the basis of information
provided by the candidate. The selection process includes the testing and
interview process. After selection, the employees are then transferred to their
particular branches, where the duties are assigned to them as well as training is
provided them on the basis of their nature of job.
HR department sets the rewards (salaries, bonuses etc) according to the
performance and the target achievement of the employees, If one is working
satisfactorily and efficiently then he is awarded with such incentives that will
motivate others to do well. If the performance shows downfall, he is warned.
The Manager of each branch is responsible for the appraisal of the
employees. Then on the basis of appraisal, promotion and salary increments are
awarded.

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Job Analysis
“The procedure for determining the duties and skill requirements of a job and
kind of person who should be hired for it.”
Job analysis has two components i.e.
• Job Description
• Job specification

Job Description:
“Job description is the process through which we determine the duties,
responsibilities, supervisory responsibilities and behaviours required to perform
the job”

Job Specification:
“Job specification is the process of determining the job related skills, abilities
required for a job”

Job Analysis of Faysal Bank


Basically there is no specific Job Description and Job Specification for a
particular job in Faysal Bank. Change in banking system and size of operations is
affecting the duties, responsibilities of job. Faysal Bank for writing job description
and job specification intensely focus on the immediate supervisor. If there is any
job vacant at low level in the Faysal Bank, the immediate supervisor of
concerned department with the assistance of Branch Manager will transfer the
relevant job description and specification to the HRM Department of Faysal Bank
situated at Karachi. The head office will use this written job description and
specification to select the right employee for Faysal Bank. But one thing is
important that job related duties and responsibilities at low level can change with
the will of immediate supervisor.
Practically when we talk about the Faysal Bank low level staff, about more
than 40 employees are working under the authority of operational manager.
Operational manager can change the duties and responsibilities of employees
working under his authority.

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At the middle level management, the operational manager and all the
concerned department head come under this part. The Branch manager of the
concerned branch will write job description and job specification of the vacant job
and transfer it to the head office of Faysal bank.
At the top level, the Branch manager of the concerned branch come. In
practical side, their job analysis is done directly by the head office. And the head
office use the mostly internal source of recruitment here to fill the vacant top level
job or succession planning.

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An Example Regarding Job Analysis (Description &
Specification):
Principal Accountabilities:
1. Timely handling of all front office activities associated with the opening of
customer accounts at the branch to enhance customer satisfaction and
process efficiently.

2. Maximize sales of banks’ product/ services to meet targets assigned with


regards to Deposits/ Risk/ Assets/ Customer Finance.

3. Receipt of ATM forms and timely issuance of ATM card.


4. Manage and handle processing and operations of all FCU related
activities of the branch including printing of all associated reports.

Compliance
1. Positive internal audit rating with low incidents of audit objects.
2. Complete adherence to FBL’s SOPs as per laid policies and procedures.
3. Full compliance with SBP and other regulatory requirements.
Documentation
1. Preparation of daily position of balance sheet/profit and loss with details of
other assets and liabilities for review of Branch Manager.

2. Reporting of demand and time liability figures and weekly position to


Treasury

3. Preparation of JVs and payment vouchers for settlement of vendors’ bills


4. Record responding entries debited by Main Branch pertaining to FCU.
5. Preparation of monthly results duly signed by the Branch Manager for
head office FCU.

6. report to H.O. FCU for SBP of monthly expenses, cost of funds, liabilities
and assets

7. Preparing details of assets charged off during the month.


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8. Preparation of details of addition, disposals and transfer of fixed assets
along with summary.

9. Aging of accounts appearing in other assets and liabilities pertaining to


FCU
10.Preparation of data files and e-mailing of same for Enterprise Reporting
11. Preparation of details of leases written during the month.
12. Cost of funds report for the month with year to date figures.
13. Variance report on actual vs. budget figures.
14. Preparation of quarterly/yearly income tax reports for Head Office and
Income tax Department.
15. Maintenance of staff personal files
16. Preparation of weekly deposit comparative positions.
17. Submission of withholding tax deduction, its reporting and related returns
only for staff/suppliers.
18. Branch related financial reporting on daily/weekly/quarterly/biannually.

Problem Solving and Services


1. Provide heighest level of personalized service to customers through
proper handling, timely assistance, promptly attending to their queries and
complaints, catering to their personal banking needs and building a strong
and cordial relationship to avoid dissatisfaction.
2. Deciding and providing the right type of product/service to meet the need
of individual customer.
3. Maintaining and improving the service standards of the Bank to avoid
incidence of complaints related to service issue from bank’s customers.
4. Close coordination with all other functions of the branch to facilitate
smooth customer transaction processing.

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Other Responsibilities:
1. Backup of other Customer Services Officers(CSO)
2. To generate business through local sales promotion, in-branch walk in
customers and marketing calls on existing as well as potential individual
customer to increase sales thereby increasing the branch business.
3. Coordinate the sales effort of sales team where needed and to forge
strong rapport with the customers to ensure strengthening of relationship on
an ongoing basis,
4. Maintain a high standard of appearance of the customer service center
and self.
5. Any other responsibility assigned by Operations manager/ Branch
Manager.

Job Requirement:
• Minimum Qualification
• Experience

Supervisory Responsibilities:
• Number of person reporting
• Direct Report
• Report to

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Recruitment and Selection Process
Recruitment refers to the process of attracting job applicants from the available
labor force.
Selection is the process of choosing from a group of applicants those individuals
best suited for a particular position.

Sources used by Faysal Bank:


1. Internal Sources
2. External Sources

Internal Source:
1. Job Posting:
Faysal Bank publicizes open job to its existing employees by listing its attributes
e.g. qualification, experience and pay rates. Bulletin Boards and Notice Boards
inside the organization are used for this publication.
2. Contacts and References:
Faysal Bank encourages the contacts and references of its existing employees. It
means if there is any job vacant in the bank, the candidates referred by the
employees are preferred.

External Source:
1. Advertisement:
Advertisement is a major external source adopted by Faysal Bank. Organization
extensively focuses on advertisement about vacant jobs and thus attracts the
potential candidates.
The only source of advertisement adopted by Faysal Bank is news
papers.

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2. Direct Approach:
Faysal Bank approaches directly to experienced employees of other banks and
offers them higher rewards to pursue them to leave their existing jobs and join
Faysal bank.
Disadvantage of this method is that they have to pay higher salary for the
post offered.

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Methods of Recruitment & Selection

Testing:
Test is conducted by the regional offices of Faysal Bank to choose the potential
candidates. Test is divided mainly into two portions
a. General IQ level test (30% weightage)
b. Job Related Test (70% weightage)
• Duration of test is 2-3 hours
• Minimum 50% marks are required to appear in the interview.
• There is no negative marking in the test.
Qualifies candidates are then called for an interview.

Interview:
In an interview information is obtained from the candidates through oral
responses.
• Regional office conducts the interview
• Panel Interview is conducted
• Panel consists of 3-7 members
• Expected salary and information about information about past job is
gathered
• Nature of job and responsibilities are discussed with the candidate
• Preferences of candidate are asked in the interview.

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Process of Training
After the selection of employees, the process of training starts. We will discuss
the training of prospective and current employees.

Job Rotation:
To rotate the employees from one job to another within same department
as to enhance his experience for increased job duties.
In Faysal Bank there is no specific criteria for job rotation. It depends upon
the will of Branch Manager whether to rotate the employee or not. ( Inter
Departmental Transfer)

Coaching:
Initially the employees are selected as MTO’s ( Management training Officers).
They are provided with necessary training relevant to their job in specific
branches as directed by regional office.
On job training is also provided to the employees. Permanent employees
are trained with respect to certain changes in banking system and its policies
such as installation of new software, change in pattern of transaction, change in
Govt. policies etc.

Apprenticeship:
“Fresh graduates and master degree holders of reputed institutes are
invited to get training regarding operations of a particular organization
against a little reward.”
Faysal Bank also has a attractive offer for fresh graduates and master degree
holders to get apprenticeship. This offer contains attraction as a reward f Rs.
750 per weak and if performance is unto the mark then an offer for permanent
employee s made.

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Compensation Management

Salary:

There are two way of salary setting in Faysal Bank:

 If Bank approaches to any experienced employee thin pay will be set on


the will of employee.
 If the candidate approaches to Bank then B.M negotiate for salary.

Bank will pay Rs. 10490 to fresh candidates it includes 66.67% of basic salary.

 Add 40% of basic salary is house rent.


 Add 10% of basic salary is utility allowance.

Salary is not providing according to rank but salary is according to performance


and target achievement. Let’s have a view on salary of different employees.

 Branch Manager Rs. 78600.


 Operational Manager Rs. 42500.
 Customer service in charge Rs. 20900.
 Cash in charge Rs. 35000.
 Branch Accountant Rs. 16000.

Probation Period:

It is specific time period for new employees does not become a permanent
employee and in this period organization can fire at any time on the basis of pour
performance. Faysal Bank initially selects the new employees on the probation
period of six months.
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Promotion Criteria:

In Faysal Bank Branch Manager is responsible for making promotion which is


made on the basis of performance.
Two promotion Criteria are used:
1) On performance Basis
2) Without performance

Performance Basis:

On the basis of performance no specific criteria for promotion. One can be


performed from OG0 to OG1 grade with 3 month.

Without Performance:

If the employee does not perform well for even consecutive three years then his
promotion is must to next level.

Rent OR Residence Facility:

House rent is paid to every one at a rate of 40% of basic salary. No residence
facility is given to any one.

Medical Care:

Faysal Bank provides medical facility to all of its employees.

 If one employee is admitted in any hospital, bank will provide 700 daily.

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 All the medical bills are reimbursed by Faysal Bank if bills are proper
invoices.
The fallowing Hospitals are listed with Faysal Bank:

 Gondal medical complex

 Salamat Hospital

 Sadique Sadiq Hospital

Transportation Facility:

No transportation facility is provided by Faysal Bank. Only Branch


Manager is provided with the patrol facility.

Pension:

No pension is given as it is a private Bank. Only gratuity fund is provided


10% of basic salary per month is contributed by employee and equal
amount is contributed by employer at the time of retirement both
amounts along with interest is paid to employee.

Vacation Criteria:
Faysal Bank provides an annual leaves of 42 with pay from which:

 6 sick
 6 causal
 15 recreation leaves
 15 privilege leaves

Transfer:

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If an employee is periodically employed outside the town and the
branch is being opened in the home town of the employee he is transferred to the
home town branch. In case of any shortage, employees are also temporary
transferred.

Career Management:

Initially the fresh employees are selected on contract basis. If one


selected on permanent basis six month probation period is applied. An employee
has following opportunities for career building.

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President
DCEO CEO

General Manager
Area Manager Regional

Senior Vice President Unit Head


(SVP)

Vice President 2 Vice President 1


VP 2 VP 1

Regional Vice President 2 Regional Vice President 1


RVP 2 RVP 1

Assistant Vice President Assistance Vice President 1


AVP AVP 1

Officer Grade

Officer Grade 2

Officer Grade 3

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Performance Appraisal:

To compare the employees current/past performance with their


standards such process is called performance appraisal. Faysal Bank adopts the
traditional appraisal method which is done on yearly basis. (Branch Manager of
Faysal Bank) appraises from sweeper to operational manager and appraises of
BM is done by area manager of Faysal Bank. Branch manager appraises all the
employees by taking direct instructions from respective heads.

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Flaws in Practice

 Salaries are given on individual basis but the company should adopt the
policy of performance base salary system.
 There is no separate human resource department in each branch of
Faysal bank.
 The company is not adopting the policy of direct hiring.
 The performance appraisal has been done on traditional basis.(yearly
basis)
 Transportation facility has not been provided to all the employees except
Branch manager.
 No mobile facility is to be provided by Faysal bank.
 There is no proper job rotation in Faysal bank.
 No Traveling allowance is to be provided by Faysal bank.
 Some time the working time exceeds the limits of twelve hours.

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Ergonomics/Biotechnology/Human
Engineering
(The study of work place design):

After making discussion with the different level of employees of Faysal bank, we

study the workplace and the equipments used are best designed for the comfort,

safety, efficiency. It means all the employees are satisfied with the policies as

well as working environment of Faysal bank. As far as the overall productivity of

Faysal bank is concerned, employees are not satisfied with the Faysal bank

according to them the must attract more customer to increase its business as

well as services

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