Faysal Bank Internee

Project Report
Internship Report

Ariba Imtiaz Ahmed 11th July 2012 8th August 2012

Report Date: 8 August 2012

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Preface
This report documents the work done during the summer internship at Faysal Bank. The report gives an overview of the tasks completed during the period of internship with technical details. I have tried my best to keep report simple yet technically correct. I hope I succeed in my attempt.

Ariba Imtiaz Ahmed

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Acknowledgement
Simply put, I could not have done this work without the lots of help I received from the operations office. Everybody is very helpful and patient not stressing even if a question is asked again and again. The environment is also very productive to learning and I enjoyed my internship. I would specially like to thank Sir Muhammad Ali Rizvi, Maam Sundus Farid, Maam Zeenat Aftab and Sir Khalid Israr for keeping their cool and making me understand a point even if I asked it more than once. Ariba Imtiaz

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Table of Contents
Introduction to Faysal Bank .......................................................................................................................... 5 History ....................................................................................................................................................... 5 Vision......................................................................................................................................................... 5 Mission ...................................................................................................................................................... 5 Group Information .................................................................................................................................... 5 Values ........................................................................................................................................................ 6 Threshold Values ................................................................................................................................... 6 Differentiator Values............................................................................................................................. 6 Products .................................................................................................................................................... 7 Services ..................................................................................................................................................... 7 Major Activities Performed During Internship.............................................................................................. 8 Funds Transfer .......................................................................................................................................... 8 a. b. c. Cheque transfer ............................................................................................................................ 8 Transfer form ................................................................................................................................ 8 Online request .............................................................................................................................. 9

Toggling ..................................................................................................................................................... 9 Drop Box ................................................................................................................................................... 9 Cheque Cancelling................................................................................................................................... 10 Clearing ................................................................................................................................................... 10 Locker Operations ................................................................................................................................... 11 Cheque book issuance ............................................................................................................................ 11 Cheque book shredding .......................................................................................................................... 12 Pay Order (PO) process ........................................................................................................................... 12 a. b. c. PO request: ................................................................................................................................. 12 PO issuance ................................................................................................................................. 13 PO receiving ................................................................................................................................ 13

Pay Order (PO) cancelling ....................................................................................................................... 13 New things I learned ................................................................................................................................... 14

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Introduction to Faysal Bank

Faysal Bank is a public limited company listed with Karachi Stock Exchange. Faysal bank Limited is subsidiary of Ithmaar Bank of Bahrain.

History
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. 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. The strength and stability of Faysal Bank Limited is evident through the Credit Rating assigned by JCR-VIS Credit Rating Company Limited of "AA" (Double A) for long to medium term and "A-1+" (A One Plus) for short term. The majority share holding of Faysal Bank Limited is held by Ithmaar Bank B.S.C an investment bank listed in Bahrain.

Vision
Excellence in all that we do.

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

Group Information
Ithmaar Bank B.S.C. is licensed by the Central Bank of Bahrain and listed on the Bahrain Stock Exchange (ITHMR). It has a paid-up capital of US$360 million, total equity of US$1.1billion and is a full investment bank with its direct business covering the Middle East and North Africa (MENA) region, as well as South Asia, Asia-Pacific and Europe. Besides holding significant investments in the banking, financial services and real estate sectors indifferent markets, the main activities of the Bank include underwriting (equity and other financings), private equity (structuring, participation and portfolio management), Islamic financing, private banking, and advisory services covering project financing, investments, capital markets and mergers & acquisitions.

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Values
Threshold Values
Values at the heart of the Faysal Brand

1. Team Work
Function as a team. Within function, cooperate. Between functions, collaborate. Together, aim for excellence and leadership in the chosen markets.

2. Respect
Hold the customers, investors and regulators in high esteem. Up hold customer rights to demand efficient services.

3. Integrity
Faysal Bank is recognized by its reliability, credibility and character. Believe in ethical, honorable, time-proven principles of up rightness. Stand for and abide by honesty, truth and transparency.

4. Professionalism
Faysal Bank is proficient and efficient in all that it does. Provides banking services, knowledgeably and skillfully. Up hold regulatory obligations.

Differentiator Values
Values that set Faysal brand apart

5. Passion
Bring zeal and enthusiasm for banking to work. Provide customers with the best or the best suited and go the extra mile in legitimate, acceptable ways.

6. Innovation
Pioneer novel and more efficient ways to deliver solution. Be dedicated to a culture of improvement and modernization. Stand for originality, in thought in action and in belief.

7. Responsiveness
Be receptive to the need for change and improment. Be proactive and anticipate the customers needs and wants. Act quickly to modify, adjust or prepare for new realities.

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8. Compassion
Concern for the colleagues, customers, communities and country sets Faysal Bank apart. To each other, they are a family. For each other, they are a meaningful source of shared humanity.

Products

Deposit Saving accounts Rozana Munafa Plus Account Faysal Moavin Account Faysal Premium Account Faysal Izafa Account Mahfooz Sarmaya FCY Savings Plus Account Consumer Loans: o Car Loans o Housing Loans Corporate & Investment Banking: o Corporate Financing o SME Finance o Trade Finance o Treasury & Capital Markets o Agricultural Financing o Cash Management Services

Services

PocketMate Visa Debit Card Travelers Cheques Transfer of Funds Safe Deposit Lockers Non-Stop Banking

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Major Activities Performed During Internship

Following are the activities I either performed or observed being performed during my internship at FBL 1. Fund transfer 2. Toggling 3. Drop box 4. Cheque Cancelling 5. Clearing 6. Locker Operation 7. Cheque book issuance 8. Cheque book shredding 9. Pay order process 10. Pay order cancelling

Funds Transfer
Fund transfer is the transfer of funds using online banking via SYMBOLS system. The fund transfer is done only on the cheques of the same bank at which it is presented at. The funds are transferred between the beneficiary and drawers accounts. The cheques are presented at the cash counter; there a deposit slip is attached to the cheque adding the details of the cheque onto it for bank use. The cheques are then transferred onto the operations office that then further processes it. There are three types of funds transfer requests: a. Cheque transfer b. Transfer form c. Online request

a. Cheque transfer
In cheque transfer the customer issues a cheque and presents it at the bank through the beneficiary. The cheque accepted is only of the bank in which it is presented. The bank then transfers the funds using the SYMBOL system.

b. Transfer form
In transfer form the customer issues a cheque and through the beneficiary the cheque is presented to the bank where the customer fills a transfer form. The bank then transfers the funds via SYMBOLS system.
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c. Online request
This kind of transfer is preferred by companies who send an online request to the bank to transfer funds. The same process as the above is followed the only difference is the mode of request.

Toggling
Toggling is the method in which two parallel systems are used SYMBOLS and TCSS. The cheques for toggling have one of the two cases; either the beneficiary has an RBS account or the drawer has an RBS account. The processing on the cheques whose beneficiary is an RBS account holder id first done on TCSS followed by SYMBOLS where as for cheques whos drawer has an RBS account are entered first in SYMBOLS and then TCSS.

Drop Box
Drop Box refers to the box in the ATM room where the cheques are dropped by the account holders. The timings at which the cheques from the drop box are taken are 9.00 and 13.00. The cheques are taken by the authorized individual only and the operation manager who counter signs the records. The deposited cheques are deposited in envelopes provided by the bank and placed at the surface of the drop box. The total number of cheques found at the time is written in the register at the drop box keeping a record of the cheques at that drop box. It signed by the individual taking the cheques and countered signed by the operation manager. Another record of the cheques is made at the operations office and the cheques are photocopied along with their credit vouchers. The cheques which have been deposited without their credit vouchers are made a credit voucher each so that the bank can keep a record of the cheque even if the cheque is not present. The cheques are than separated into two piles; one pile having the cheques of their own bank while the other pile contains the rest of the cheques. Then the own bank cheques are processed using the transfer/toggling method while the rest of the cheques are sent for clearing following the clearing process. At the end of the day a record is made of the total cheques dropped at the drop box and kept in the branchs drop box records. The sheet is signed by the individual making it and the operations manager.
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Cheque Cancelling
The cheques cancelled are cancelled on the customers request. The customer either personally or through an authorized party or via email informs the bank that he wants the cheque to be cancelled listing the account number cheque number, reason for the cancellation and sometimes the amount on the cheque in question. The bank fills a form for its own record filling the details asked and cancels the cheque in question. The reason for the cancellation may be as follows: 1. Missing cheque 2. Personnel reasons

Clearing
All cheques are as a rule go through clearing house for cheques, only cheques that do not go through it are those which belong to the same bank. The money is not release until the cheque is verified by the bank in all respect. This process is call cheque clearing process. In simple terms if more than one bank is involved then it has to go through clearing house. In case of dealing with, out of the country bank it needs to go thru reserve bank of both the countries, besides going through clearing house. If the depositor does not get the money after depositing the cheque then it comes back as uncleared check with reason, such as no such account or insufficient fund or signature cannot be verified or stopped payment initiated by issuer. The clearing timings for Faysal Bank are 14.30. The clearing includes cheques of other banks which have been given to us through drop box or counter when the customer personally presents it to us. The clearing process includes stamping the cheques with 3 stamps: 1. Crossing stamp (front) which makes the cheque the property of the branch which stamps it and no other bank or branch can process it unless the cancel stamp is placed. 2. Clearing stamp (front) which says that the cheque is presented for clearing on the date stamped and by the bank whose stamp is laid on the cheque. 3. Payees account stamp (back) which says that the branch ensures that the beneficiary account is true and the money will go to the correct account.
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The cheques are categorized according to the city in a batch of 50 maximum cheques in one pile. The cheques are then sent to NIFT for clearing where the cheques are sent to the respective banks that in turn place the funds in the accounts specified by the cheques. The cheques are returned by the respective banks if there is some problem with the cheque. The problems can include: 1. 2. 3. 4. 5. Insufficient funds Post dated cheque Pre dated cheque Difference in amount in figures and words Difference in signature Etc.

The returned cheques are photocopied along with their return slips, entered manually in records and kept with the branch for 2 days. The 2 days are for the drawer to get the cheque from the branch and if at the end of two days the cheques are still with the bank the cheques are dispatched to the addresses given by the drawers in the account information.

Locker Operations
Branches of banks have lockers depending on the transaction amount handled daily. If the branch fulfills the prerequisites it has a locker else it does not. When a customer comes for the locker operation he or she is required to fill a form for the locker stating his details there. He or she must have a key to operate the locker. The form is then passed onto the individual who holds access to the lockers. That individual enters the customers details into his own record and leads the customer to the locker. During the entire time the customer is in the locker room the bank person has to stay.

Cheque book issuance

A cheque book is issued at two occasions; when the customer opens an account and on customers request when his cheque book finishes. A cheque book is issued within 2 weeks of the request and kept with the bank. The customer is informed of the cheque book arrival so that he can come and get it. The Bank issue 25, 50, 100 leaves cheque books.

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The customer has to come and receive the cheque book at the bank branch in which his account is present. If for any reason he cannot come somebody else can come on his authority. The receiver of the cheque book must sign that he received the cheque book on the bank records which is counter signed by the individual handling the cheque books and the operations manager who activates the cheque book. The receiver of the cheque book must provide his original CNIC to get the cheque book. The customer also has an option of requesting the bank to transfer his issued cheque book to wherever he finds convenient and the bank has a branch present there. The bank if possible transfers the cheque to the requested place. If the customer does not come and get his cheque book within two weeks he is sent a reminder that his cheque book has arrived. He is then given the time of 25 more days after which his check book is shredded.

Cheque book shredding

If the customer does not respond within the allotted time limit of 45 days the cheque book is shredded. For this purpose a statement is made by the bank about shredding the book since the customer has not received it yet even after a reminder sent to the customer. The sheet is signed by the individual handling the checkbooks and counter signed by the branch manager and the operations manager. The sheet is kept as a record for the bank and the cheque book is shredded.

Pay Order (PO) process

The pay order process followed by the bank has the following main steps: 1. PO request 2. PO issuance 3. PO receiving

a. PO request:
A request for a pay order is issued by the requested party by filling up a funds transfer form and attaching a cheque. The form is requests the following details: 1. The branch in which the party is filling the form. 2. Checking the PO Box. 3. Transaction Details section which includes: a. The amount in figures and then words.
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b. Type of currency to be transferred. c. Account number from which the money is to transfer. d. Reason for the Pay Order request. 4. Beneficiary Details a. Beneficiarys name. b. Beneficiarys address. 5. Applicants Details a. Applicants name (May be a company or an Individual). b. Applicants account number. c. Signature(s) of the applicant(s) at the front and back (in case of company requesting the pay order company stamps are required along with the signatures). 6. Mode of receipt and in case messenger is selected the Collection persons Details Section which includes: a. Collectors name. b. Collectors address. c. Collectors CNIC or passport number. d. Collectors contact number (optional).

b. PO issuance
The PO form is then given to the operations branch which then processes it and prints the PO.

c. PO receiving
The issued Pay Order (PO) is received by the customer or the person coming on his behalf. He takes the Po signing the receiving slip with his name and signature.

Pay Order (PO) cancelling

A pay order can be cancelled. For cancelling the customer sends a request to the bank asking to cancel the pay order stating: 1. 2. 3. 4. Pay order number Account number Pay order amount Reason for cancelling

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A form is filled filling all the details provided by the customer and it is cancelled on the system.

New things I learned

My internship experience has given me a realistic approach to my educational knowledge. I feel that my internship has provided me with better knowledge and better skills about how things go in the professional field. I feel honored to work with such experienced professionals. I must admit that such interaction in this respectable professional community will help me in seeking out job opportunities in the near future. Each task I performed was a different experience in itself. By the end of it, I must say I realized that earning money is not so easy after all; it takes a lot of hard work and devotion, and not to forget time. I definitely have learned things, which will impact my career and my character. The overall experience of my internship was very good; I have learnt the sense of responsibility in its literal meaning. Besides this I also gained knowledge about banking which I previously lacked and many more products being offered by the bank. So in a nutshell, this internship gave me the experience, which would no doubt boost my confidence to work in future.

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