KASB BANK LTD

EVOLUTION OF BANKING:
In 1586, the first bank in the world formed at Italy with the name of Bank of Venus and in
1694, Bank of England was inaugurated in United Kingdom. The Bank of England has
got legal right to issue currency in 1758. Banking is one of the most sensitive businesses all
over the world. Banks play very important role in the economy of a country and Pakistan is on
exemption. Banks are custodian to the possessions of the general masses. The banking sector
plays a significant role in a contemporary world of money and economy. It influences and
facilitates many different but integrated economic activities like resources mobilization,
poverty elimination, production and distribution of public finance. Banks play very positive
and important role in the overall economic development of the country. The first phase in
evolution of banking in Pakistan sees very hard days for the whole banking sector. Starting
virtually from scratch in 1947, the country today possesses a full range of banking and
financial institutions to cope with various needs of the economy.The area now constituting
Pakistan was, relatively speaking, fairly well provided with banking facilities in undivided
India, in March 1947 there were 3496 offices of Indian scheduled banks out of which as many
as 487 were situated in territories now constituting Pakistan.

THE ORIGIN OF THE WORD BANK:

As concerned with the origin of the word BANK, it is still most of the experts do not agree
upon the word Bank i.e. from where and how this word originated. People have different
opinions about its origin. Many experts agreed that the word Bank is originated from
following two words:

KASB BANK LTD

Bancus

Back

DEFINITION OF BANK:
The definition of a bank varies from country to country. In general A bank is a financial
institution and a financial intermediary that accepts deposits and channels those deposits
into lending activities, either directly by loaning or indirectly through capital markets.
Abank links together customers that have capital deficits and customers with capital
surpluses.
Or
"A financial institution, which deals with money and credit It accepts deposits from
individuals, firms and companies at a lower rate of Interest and gives at higher rate of interest
to those who need them.
A financial establishment which uses money deposited by customers for investment, pays it
out when required, makes loan at interest, exchanges currency, etc.

BANKING SECTOR IN PAKISTAN:

At the time of independence, the areas which now constitute Pakistan were producing only
food grains and agricultural raw material for Indo-Pakistan subcontinent. There were
practically no industries, and whatever raw material was produced was being exported from
Pakistan. However, commercial banking facilities were provided fairly well here. There were
487 offices of scheduled banks in the areas now constituting Pakistan.
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The financial sector in Pakistan comprises of Commercial Banks, Development Finance
Institutions (DFIs), Microfinance Banks (MFBs), Non-banking Finance Companies (NBFCs)
(leasing companies, Investment Banks, Discount Houses, Housing Finance Companies,
Venture Capital Companies, Mutual Funds), Modarabas, Stock Exchange and Insurance
Companies. Under the established governmental structure the supervisory responsibilities in
case of Banks, Development Finance Institutions (DFIs), and Microfinance Banks (MFBs)
falls within legal range of State Bank of Pakistan while the rest of the financial institutions are
monitored by other authorities such as Securities and Exchange Commission and Controller of
Insurance.
At present there are 41 scheduled banks, 6 DFIs, and 2 MFBs operating in Pakistan whose
activities are regulated and supervised by State Bank of Pakistan. There are 18 commercial
banks in Pakistan.
1.

Bank AL Habib

2.

Bank Alfalah

3.

Askari Bank

4.

Barclays Bank Pakistan

5.

First Women Bank

6.

Faysal Bank

7.

Habib Bank Limited

8.

Habib Metropolitan Bank

9.

Habib Bank AG Zurich

10.

JS Bank

11.

KASB Bank Ltd

12.

MCB Bank Limited

13.

Soneri Bank

14.

Summit Bank

15.

United Bank Limited

16.

Samba Bank Limited

17.

Allied Bank Limited

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18.

Standard Chartered Pakistan

The commercial banks comprise of 3 nationalized banks, 3 privatized banks, 15 private sector
banks, 14 foreign banks, 2 provincial scheduled banks, and 4 specialized banks.
BEFORE NATIONALIZATION:
As a new country without resources it was difficult for Pakistan to run its own banking system
immediately, so it was decided that the Reserve Bank of India should continue to function in
Pakistan until 30th September 1948, and Pakistan would take over the management of public
debt and exchange control from Reserve Bank of India on 1st April, 1948. By 30th June 1948,
the number of offices of scheduled banks in Pakistan declined from 487 to only 195, because
registered banks transferred from Pakistani territories to India.
At that time there were 19 non Indian (foreign banks) and only 2 Pakistani banks (Habib Bank,
Australian Bank). In 1 July 1948, of the total bank deposits of Rs. 1.1081 billion held in
Pakistan, as much as 73% was held by foreign banks whose activities were largely confined to
foreign trade.
In the first eighteen months of the operation of State Bank of Pakistan, 51 new branches were
opened in both East and West Pakistan of which:
o 28 were Pakistani Banks
o 12 were Indian Banks
o 4 were Exchange Banks
o 7 were newly formed NBP of which 6 were in East Pakistan.
By December 1949, there were 35 scheduled banks in Pakistan of which:
o 4 were Pakistani Banks
o 23 were Indian Banks
o 8 were Exchange Banks

KASB BANK LTD

Pakistan has a well-developed banking system, which consists of a wide variety of
institutions. The country started without any worthwhile banking network in 1947 but
witnessed phenomenal growth in the first two decades. By 1970, it had acquired a flourishing
banking sector.

KASB BANK LTD

CHAPTER 1
THE ORGANIZATION
Topics:
Organizations history and background
General profile of the company
Future goals of business.
Organizational structure of the bank.
Description of various departments.
Swot analysis of an organization.

KASB BANK LTD

THE ORGANIZATION
HISTORY AND INTRODUCTION:
KASB Group, established in 1958, has a long-standing tradition of trust and excellence in
financial services in Pakistan, specializing primarily in investment banking, research,
brokerage, asset management, Islamic finance and commercial banking.
KASB provides its customers access to a broad range of funding, financial and investment
products, made possible by the Group's strong network of local and international partnerships.
KASB Bank Limited was incorporated on October 13, 1994 as Platinum Commercial Bank
Limited. The name of the bank was subsequently changed to KASB Bank Limited on
February 21, 2003, when the majority shareholding was acquired by the KASB Group.
The merger of Khadim Ali Shah Bukhari & Co and KASB Leasing Limited into the bank
increased the paid-up capital of the bank to Rs 1.293 billion as on December 31, 2003
complying with the regulatory requirements. Bank also has a 100% stake in KASB Securities
(Pvt) Limited.
The KASB Bank operates through its network of 104 branches in 43 major cities of Pakistan
and seeks to deliver unique and innovative financial solutions to a large portfolio of
investment, corporate and consumer banking customers. Its shares are listed on the Karachi,
Lahore and Islamabad stock exchanges.
KASB Bank during the third quarter continued to focus on its core banking activities. With the
recent reorganization of the commercial, consumer, and corporate banking units and
introduction of new business initiatives, the business is now geared up to operate in the
defined market segments and achieved the desired results.

The plan for opening new branches is being followed as chalked out and the bank is now
operating with a network of 104 branches located it 43 cities of Pakistan. In 2009, KASB
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successfully launched Home Remittances Business- a joint effort led by the PRI initiative
(supported by the State Bank). KASB Bank is now amongst a few banks, which are presently
offering this business to a wide clientele base of local beneficiaries of inward home
remittances.
KASB Bank posted a loss of Rs 0.97 billion for the period. In 2005 it incurred a loss of Rs 273
million. In 2006, in compliance with the minimum capital requirements prescribed by the State
Bank of Pakistan (SBP), the bank has decided to merge with International Housing Finance
Limited (IHFL), a company in which Nasir Ali Shah Bukhari, sponsor/director of the bank
holds 64.33 percent shares. The year 2006 brought about significant changes for the bank.

The entity adopted a new logo and signage, which was in alignment with re-branding attempt
of the bank. 2006 also saw the witness of introduction of several consumer products. The
progressive movement of the bank along with the encouraging economic environment helped
the bank improve its bottom line factor immensely that it was able to emerge out of post-tax
loss in 2005 and earn a post tax profit of Rs 137 million in the same year.
This situation improved with year on, as evident by the higher profit earned in 2007, marking
an increase of 44%. This year witnessed the development of proper control mechanisms (ie
risk management, internal control and internal audit), and heavy investment in the core
banking system. Net interest income registered an incredible increase of 74%.

MARKETING MIX:
The tools of marketing mix through which any organization can achieve its Marketing
goals
The marketing Mix, which is made up of the 4 P's, is the tool for assisting in the development
of a marketing strategy. Marketing decisions generally fall into the following four controllable
categories

KASB BANK LTD

4 ps:
1) Product
2) Price
3) Place
4) Promotion

PRODUCTS:

Mahana khazana

Business flex

Simple current accout

PLS (profit and loss sharing accounts)

KASB Samar savings

KASB Samar term deposit

Mahana khazana:

Product Features:

Unlimited deposits & withdrawals

Running finance facility up to 90%

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KASB BANK LTD

Locker facility***

Free Visa Debit Card

Real time online banking

Utility bills payment facility through internet banking & ATM

Free Pay Orders for balances above 1 million

24/7 phone banking facility

SMS Alerts

FOR INDIVIDUALS:
DEPOSIT RANGE

RATES p.a

Up to 1,000,000

6.00%

PKR 1,000,001-3,000,000

6.25 %

PKR 3,000,001-10,000,000

6.50%

PKR 1,000,001-50,000,000

7.00 %

PKR 50,000,001 and above

8.00 %

FOR CORPORATE:
DEPOSIT RANGE

RATES p.a

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KASB BANK LTD

Up to PKR 2,500,000

6.00%

PKR 2,500,001 and above

6.50%

BUSINESS FLEX:

KASB Business Flex is a current account which offers hassle free and reliable banking
solutions all businessmen and executives for all their business dealings. Enjoy the freedom and
flexibility to transact wherever your business takes you.
Without minimum balance condition, enjoy free facilities:

Free Funds Transfer Facility to all KASB Bank branches

Free Cheque Book

Free VISA Debit Card

Running Finance facility

Free Internet & Online Banking

Free unlimited Pay Orders & Demand Drafts

Free Lockers*

Free 24/7 Phone Banking

SMS Alerts

Free Utility Bills Payment through Internet & ATM

IBFT facility through ATM

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KASB BANK LTD

MAHEENA ASAAN:

Maheena Asaan is a one year term deposit that offers high return and profit payout on monthly
basis.Your monthly profit amount will be directly credited to your linked account, giving you
extra cash to use every month. It is like an additional source of income or a second pay cheque
without any extra effort.
Prominent features:

Profit at 8.5% per annum*

Profit credited directly in the linked account

Profit withdrawal from ATMs

Running Finance facility available

Free VISA Debit Card

Free Real-time online banking

Free Internet Banking

Free Pay Orders

*Annualized rate of expected return. Government taxes and Zakat rules are applicable.

KASB SAMAR Savings Account:

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KASB Samar:

A saving account for senior citizens of 60 years and above

Account can be opened by any individual of 60 years and above. In case of joint
account one of the account holders shall be 60 Years or above

No minimum or maximum deposit limit

Profit Payment : Monthly

Transactional Limitation: Unlimited no. of transaction - deposit/withdrawals

Free/ Discounted Offering:

Cheque books Free & Free ATM / VISA Debit Card. (Card issuance and annual fee
waiver)

50% discount on locker rent (subject to availability)

24/7 Phone Banking

DEPOSIT RANGE

RATES P.A

Up to 1,000,000

6.00%

Over PKR 1,000,000-3,000,000

6.50%

Above PKR 3,000,000

7.50%

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KASB SAMAR Term Deposit Account:

KASB Samar:

Account can be opened by any individual of 60 years and above. In case of joint
account one of the account holders shall be 60 Years or above.

Minimum Deposit Limit: Rs 50,000/

Maximum Deposit Limit: Unlimited

Profit Payment : Monthly

Term Tenure: One year fixed Deposit

Free/ Discounted Offering:

Cheque books Free & Free ATM / VISA Debit Card. (Card issuance and annual fee
waiver)

50% discount on locker rent (subject to availability)

24/7 Phone Banking

DEPOSIT RANGE

RATES P.A

Up to PKR 3,000,000

8.00%

Above PKR 3,000,000

8.25%

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KASB BANK LTD

Lockers:
Storing jewellery and other valuables in your home at times becomes a security issue and an
obstacle in case of natural calamities. KASB Bank offers you, a safe, trustworthy space to
store your valuables, jewellery, documents and other things dear to you.
Key Benefits:

State-of-the-art Lockers, the safe deposit vaults with fully equipped security systems.

Available in different sizes as per your requirement.

For further details on how to obtain a locker visit your nearest KASB Bank branch
now!

PRICE:
Schedule of CHARGES:

Duplicate statement of account Rs. 35/ per statement.

Issue of SBP / NBP Cheques on behalf of customers if allowed by SBP

Rs. 300/ per cheque.

Stop payment of cheque Rupee A/c Rs. 200/ per instruction and F.C.

Same day outward clearing cheque Rs 150/ per instrument.

Same day cheque return charges Rs. 200/ per instrument.

Intercity cheques charges Rs. 100/ Flat per instrument

Intercity cheque return charges Rs. 400/ per instrument

Issuance of Cheque Book Re 3/ per leaf.

First cheque book of 25 leaves free to all account holders.

Maintenance on Current Deposit Accounts Rs 50/ per

No Service Charges shall be deducted from Dormant Accounts.

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KASB BANK LTD

Two chequing withdrawals per month free of charges. Over and above Rs.50/ per
withdrawal.

Rs. 35/ for each duplicate statement of account.

Document retrieval charges /photocopy of Old record.Rs. 500/ within one year per
request

Rs. 1,000/ above one year per request

Customer Document verification & Legal Opinion Charges Minimum Rs. 1,000/

PLACE:
Now KASB bank serving us in 43 cities
Following are the names of the cities.

1)

AZAD KASHMIR

2)

BAHAWALPUR

3)

CHAKSAWARI

4)

D.G. KHAN

5)

DINA

6)

DINGA

7)

FAISALABAD

8)

FATEH JANG

9)

GHOURGHASHTI

10)

GUJJAR KHAN

11)

GUJRANWALA

12)

GUJRAT

13)

HYDERABAD

14)

ISLAMABAD

15)

JACOBABAD

16)

JHANG

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17)

JHELUM

18)

KAMOKI

19)

KANDHKOT

20)

KARACHI

21)

KASUR

22)

KHARIAN

23)

LAHORE

24)

LALA MUSA

25)

MANDI BAHAUDDIN

26)

MEHAR

27)

MIRPURKHAS

28)

MULTAN

29)

NAWABSHAH

30)

OKARA

31)

PESHAWAR

32)

QUETTA

33)

RAHIM YAR KHAN

34)

RAWALPINDI

35)

SADIQABAD

36)

SAHIWAL

37)

SAMBRIYAL

38)

SANGHAR

39)

SARGODHA

40)

SHEIKHUPURA

41)

SIALKOT

42)

SUKKUR

43)

VEHARI

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KASB BANK LTD

PROMOTION:
Bank

Strengthens

Market

Opportunities

with

Enhanced Customer Service Tools

TV ADDS

VIDEOS

WEB SITES

BROUCHERS

MAGAZINES

SOCIAL MEDIA

Part of KASB Group, KASB Bank is one of Pakistans leading financial services
organizations. It aims to build and retain stronger customer relationships through more flexible
products and services, and by offering a diverse range of delivery channels that make banking
easier.

Services:

Consumer financing

Commercial banking

Transaction banking

Corporate banking

Investment banking

Treasury

Commercial financing:
All the above products that have been discusses are commercial financing..

Consumer financing:
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1. Home loan
2. Personal loan
Ghar Asaan - ab aap maalik makaan!

With KASB Banks Ghar Asaan, you can now fulfill your dream of owning a home with much
affordable installments. Ghar Asaan variants offer options that suit your needs and pocket.
Features & Benefits

Buy, Build, or Better your home

Loan amount ranging from PKR 700,000 to PKR 15,000,000

Loan tenors ranging from 3 to 20 years

Low markup

Quick processing

Minimum documentation

Affordable monthly installments

Co-borrower and Income clubbing option

Balance Transfer Facility

Property Insurance

Life Insurance

24-hour KASB Connect support

Payment drop box facility

Personal loan:
Cash Asaan Personal Finance - your personal world

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KASB BANK LTD

Cash Asaan Personal Finance is a personal loan with affordable equal monthly installments.
You can use Cash Asaan for everything that money can buy.

Features & Benefits:

Loan amounts upto PKR 1,000,000

Loan tenors upto 5 years

No security/collateral requirements

Low markup

Quick processing

Minimum documentation

Full payment option anytime

Cheque book and ATM/Debit card facility

24-hour KASB Connect support

Payment drop box facility

Transaction banking:
Correspondent Banking
KASB Bank offer you a wide range of Correspondent Banking Services* including:
1. Credit
2. Deposit
3. Collection
4. Clearing
5. Payment services to banks and financial institutions.

Trade Finance:
KASB Trade Finance offers an extensive range of trade products and services through its
global correspondent banking network - which spans 69 countries

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KASB BANK LTD

It is aiding importers and exporters find optimal solutions for their individual requirements for
cross border trading.
With KASB Bank as your trade finance partner, you can seamlessly manage documentary
collections, letters of credit and trade guarantees alongside your risk management and
structured export finance.

Cash Management:
KASB cash management services are providing a wide range of innovative products, designed
to facilitate our valued customers to efficiently manage their cash flows.
Advantages:
1. Reduce transactional and administrative cost.
2. Operational efficiency / predictability of cash flows.
3. Effective integrated reconciliation through comprehensive real-time MIS support.
4. Eliminate or reduce idle balances.
5. Efficient accounts payables and receivables management.

Alternate Banking:
Call Centre - KASB ONE Phone banking:
KASB Connect is a 24-Hour contact center which acts as a single access point for all our
customers throughout the country. With just a single access phone call, our customers can
have access to a wide range of tele-banking solutions and personalized banking services.
ATM Network:
KASB Bank has a network of 91 ATMs across Pakistan which is expanding continuously. It is
also a part of 1- Link, MNET and VISA ATM networks which allows KASB Bank ONE
VISA Debit cardholders 24/7 access to their accounts from over 6,400 + ATMs countrywide
and over 1.9 million ATMs in more than 200 countries worldwide. Moreover KASB ONE
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KASB BANK LTD

VISA Debit card is also accepted on all VISA certified machines displaying the VISA Plus
sign.
Internet Banking
KASB Internet Banking lets you perform a variety of financial transactions; such as, funds
transfer, bill payments and check account statements making life easier and faster for you.
Mobile Banking
Through KASB Mobile Banking, you will now have instant access to your account(s) via your
mobile anytime, anywhere! All you need is a GPRS/Wi-Fi enabled mobile phone to reap the
benefits of this exciting service.
SMS Alerts
KASB Bank offers transaction based SMS Alerts service to all its account holders. SMS Alerts
gives you the luxury of monitoring your account(s) transactions through your mobile phone.
KASB ONE VISA Debit Card
KASB ONE is a VISA debit card that works like a check! On any purchases you make, the
amount is deducted straight from your account KASB ONE makes paying convenient for
you.
Pay for all types of purchases quickly and easily.
You can use your KASB ONE VISA Debit card to pay for absolutely anything!
It works fast, so there's no need to write checks or withdraw cash. You'll save on trips to the
ATM and can leave your checkbook at home - you can use KASB ONE for nearly anything,
including:

Monthly bills

Movie tickets

Prescriptions

Gas and automative

Services
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KASB BANK LTD

Dining

Fast food

Retail merchandise

Groceries

Visa Debit Card-POS Purchase

With KASB ONE VISA Debit card, you can now shop at over 54,000 merchants in Pakistan
and over 22 million Visa merchants worldwide. Use KASB ONE VISA Debit Card for direct
debit from your bank account.

Home Remittances:
KASB lets you receive your remittance instantly and absolutely free.
We offer two options for receiving money in Pakistan:
1. Cash Payments (How to receive money)
o

Visit any KASB bank branch. Provide your unique reference code given by the
sender/remitter.

Show your identification.

Sign money receipt form and collect your money.

2. Instant Credit of Funds

o

For KASB Bank account holders, instant credit of remitted funds.

For beneficiaries, who do not have an account with KASB Bank, same day
processing of remittances received as per SBP regulations in accounts
maintained with other RTGS member Banks.

For beneficiaries maintaining accounts in Banks, other than RTGS member

Banks, remittance payments made in the form of Pay order and same day
delivered to the respective Bank addresses

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Corporate banking:
KASB offer tailor made products and services for our corporate clients as our focus is on
customer's needs and to meet their perceived value by delivering quality services in quick
turnaround times.
The unit is fully equipped with innovative tools to provide services to its valued customers for:

Working Capital and Trade Finance solutions, including Imports, Exports, Guarantees,
FOREX Options and Remittances.

Long Term needs, through debt financing. Tailor made balance sheet structuring is also
offered through our Investment Banking units expertise.

Off Balance sheet, solutions for derivatives are managed through our highly skilled
Treasury derivative unit.

Cash Management through a dedicated and innovative cash management unit.

Our Corporate Banking Unit is equipped with expertise in providing solutions for all On/Off
Balance sheet needs of our clients, through the strength of KASB Groups presence in a range
of financial services.

Treasury and money market:

Products and Services
The KASB Bank money market desk provides its customers with a variety of advisory and
investment services. We offer our customers competitive quotes and investment advice based
on their specific needs. We also allow our customers to invest in Government securities by
opening an IPS (Investor Portfolio Services) account on their behalf with the State Bank of
Pakistan.
The main types of Government securities that our customers can invest in are:

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Treasury Bills (T-Bills)
Treasury bills are zero coupon instruments issued by the Government of Pakistan and sold
through the State Bank of Pakistan via fortnightly auctions.
T-Bills are issued with maturities of 3-months, 6-months and 1 Year and are priced at a
discount. T-Bills are risk free, SLR eligible securities, that are actively traded in the secondary
market and are therefore highly liquid.
They are issued with a minimum denomination of Rs.100, 000.
Pakistan Investment Bonds (PIBS)
PIBs are long term bonds issued by the Government of Pakistan and sold through the State
Bank of Pakistan via periodic auctions.
PIBs are issued with tenors of 3, 5, 7, 10, 15, 20 and 30 Years. Being backed by the
Government of Pakistan, they present a low risk long term investment option.
The Pakistan Investment Bonds offer a fixed semi annual coupon and repayment of principal
at maturity. The minimum denomination of PIBs is Rs.100, 000.

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KASB BANK LTD

GENERAL PROFILE OF THE COMPANY:

Vision:

Partnering Success is the vision of KASB BANK.

MISSION:

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KASB BANK LTD

Values:

V Ision

Customer Focus and Innovation

A ttitude

Passion and Quest that Drives Us

L eadership

Sense of Integrity, Trust &

Accountability

U pright

Commitment to Being a Credible

Corporate Citizen

E xcellence

Distinction as a Habit

S ynergy

Ability to Harness the Power of Teams

CURRENT STATUS OF KASB BANK:

KASB Bank is now serving clients through 105 locations in 43 cities of Pakistan, offering
unique and innovative financial solutions to large portfolio of investment, corporate and
consumer banking customers. KASB Bank is regarded as the leading entity of the group with
state of the art technology providing wide scale financial services to a diversified client base.
The Bank also provides a host of financial services offered by the KASB Group.

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FUTURE GOALS OF BUSINESS:

The Banks aim is to assist its customers in fulfilling their banking needs of today and
realizing ambitions for tomorrow, by offering a comprehensive range of financial services,
while ensuring service excellence.
We provide our customers access to a broader range of funding sources, made possible by the
Groups strong network of local and international relationships.
KASB plan to extend its branch network with increase in ATMs. KASB Banks future is
bright and promising.
KASB bank is looking to open more branches and is looking for opportunities to expand other
operations too.
KASB Bank has generated more private sector foreign inflow into Pakistan than anyone else
and continues to highlight investment opportunities in Pakistan to international corporations
and global private equity/hedge funds.
The core strategy is to focus on customers needs and meet their perceived value by
delivering quality services in quick turnaround times.

its ultimate goal is to provide optimum level of financing to fuel the growth of your
business.
Future of banking industry in Pakistan was critically dependent on the strength and
performance of the economy in which SME sector had attained a crucial role in terms of its
growth potential and greater employment opportunities.

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ORGANIZATIONAL STRUCTURE OF KASB BANK:

BOARD OF DIRECTORS

GROUP HEAD

REGIONAL HEAD

BRANCH MANAGER

REGIONAL HEAD

BRANCH MANAGER

OPERATIONAL MANAGER
PERSONAL BANKER
PERSONAL BANKER
CUSTOMER RELATIONSHIP OOFFICER
CUSTOMER SERVICE OFFICER

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Names Of Board Of Directors:

Mr. Tariq M. Rangoonwala - Chairman

Mr. Bilal Mustafa - President and CEO

Mr. Ashraf Mohammad Hayat - Director

Mr. Leon Seynave - Director

Mr. Muneer Kamal - Director

Syed Tariq Hussain Gilani - Director

Ms. Sun Shui - Director

Mr. Zia Khaleeli - Director

DESCRIPTION OF VARIOUS DEPARTMENTS:

There are various departments in KASB bank. Following will be discussed one by one.
The Cash department
Human Resource Departments
Accounts Department
Investment Department
Treasurer Department
CASH DEPARTMENT:
1. Functions of cash are one of the most important functions of the Bank. It is of extreme

necessity that the cashiers and officers as well as other staffs of the bank should
understand this very well. Our main discussion of Cash Department will be on Branch
Cash balance, Safe custody of cash, Custody of keys/Duplicate keys, Maintenance
of Vault book, Sorting of Notes and Coins, Security measures, Irregularities in the
functions of the Cash Department and its' remedial.

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Receipt & Payment of Cash:

2. Cash will be received by the Receiving Cashier/Teller from the customers on bank's
printed form called pay-in-slip or deposit slip. The concerned Receiving Cashier/Teller
will ensure that the name of the account holder, account number, name of the branch,
date, denominations of the notes and coins are legibly written on the pay-in-slips.
He/She must also ensure that the pay-in-slips are signed by the person depositing the
cash. After counting the cash carefully, the Receiving Cashier/Teller put the 'Cash
Received' stamp with date and enters the amount in the Teller's Cash Proof Sheet under
a Serial Number which will also be put in the both part of the pay-in-slip with joint
signature of the concerned Teller and the Head Teller. In some cases, cash is received
on bank's vouchers for various transactions (PO, TT, DD, Commission, etc.).
Payment Cashier/Teller will receive cash from the Head Teller at the outset of the
transaction hour. He/She will pay cash against the valid Cheques/Instruments presented
by the customers after observing the required formalities of passing the same. He/She
must write the denominations of Notes/Coins on the reverse of the Cheque/Instrument
as well as obtain signature of the payee before payment. After payment of the cash,
he/she will put 'Cash Paid' stamp with date and enter the amount in the Teller's Cash
Proof Sheet under a Serial Number which will also be put on the Cheque/Instrument
paid. Cash is also paid against Cash Debit Voucher which must be signed by the
authorized officer & Manager/Deputy Manager.

Branch Cash Balance Register:

The Tellers make entry in their respective Cash Proof Sheet against receipt and
payment of cash which then jotted down to the Reserve Cash Proof Sheet Teller wise.
The closing cash balance of the day is calculated by adding the opening cash balance
with total amount of cash received minus total amount of cash paid.
The particular of bank's cash balance at the close of business of the day is entered in to
the Cash Balance Register. This Register is signed by the Head Teller/Cash In-Charge,
Joint Custodian and Manager. The physical cash will be checked by the joint
custodians/Manager before signing of the Register. The closing cash balance must

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agree with the Clean Cash Report and Statement of Affairs of the day.

3.

Maintenance of Vault Book:

A Vault Book is maintained in the branch which must always remain in the Strong
Room. All notes and coins are entered in the vault book immediately after proper
sorting. Ever deposit and withdrawal of cash from the vault/Iron safe should be entered
in to the vault book denomination wise. The vault book is to be initialed by all the
custodians of cash jointly against each entry. Deposit and withdrawal of cash from the
vault/Iron safe is to be regulated as per the insurance limit of the cash (Cash in safe,
Cash on counter, Cash in transit).

Safe custody of cash:

After completion of the above mentioned functions, if cash is found physically in order
at close of business of the day, the entire cash is kept in the bank's safe vault (Iron
safe). The Iron safe is double locked by all the custodians including Head Teller/CashIn-Charge and Manager/Deputy Manager. When the vault is opened, all the custodians
must be present. The Cash Balance Register, Vault Book should be kept in the safe
vault. Other important documents/sheets should be kept in the strong room.

Preparation of Cash Position Memo:

The daily Cash Position Memo is prepared by the Head Teller/Cash-In-Charge. The
total cash receipt and payment of the day is written in the memo including opening
cash balance of the branch. This cash position memo contains the entire cash balance
of the branch excluding late receipt and payment if any.

Custody of Keys and Duplicate Keys:

A Key Register is maintained in the branch. All the particulars of the original and
duplicate keys of the safe vault, grilled gate, and strong room door are entered in the
Key Register. The Register is signed by the concerned custodian of cash and
countersigned by the Manager. The custody of the keys must not be handed over
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without the permission of the Manager.
The duplicate keys of the branch must be deposited to the Main Branch or to the
branch authorized by the Head Office.

Security Measures:
Bank has to take extreme security measures to ensure the safety of the cash and other
valuables. Some of the measures are as follows:
a) Double lock system:
The cash balance is kept in the safe vault inside the Strong room under double lock
with joint custody of more than one official.
b) Restricted entry:
Entry to the vault and inside the cash counter should be restricted only to the
authorized personnel only.
c) Alarm bell:
An alarm bell must be set up outside the bank premises with multiple switches for
turning it on by different officials. Periodical checks should be done whether the Alarm
system is in order or not.
d) Close Circuit Television:
CCTV is to be set up covering the cash counter and the Strong room gate. The CCTV
must be turned on at the beginning of the transaction hour each day and time to time
check should be made whether the same is functioning properly.
e) Insurance of branch cash limits:
Insurance of the Cash in safe, Cash on counter and Cash in transit (for the Cash feeding
branches) up to a certain limit is arranged by Head Office. Care should be taken not to
exceed the limits. Excess cash must be remitted to the Main branch invariably on the
same day. Cash on Counter limit must be maintained while taking out cash from the
vault and after receipt of the cash from the customers.
f) Proper watch and ward duty of the guard:
The guards will perform their duties for the safeguard of the inside cash as well as bank
premises. The guards will have 24 hours watch and ward duty by rotation. The
Manager will arrange surprise inspection at irregular intervals on the holidays and at

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the night on the week days.

ROLE OF HR DEPARTMENT IN KASB BANK:

The banking industry is a highly regulated powerhouse that stabilizes the economic
environment of nations around the world. Banks store sensitive, personal information about
their clients, and commercial banks often house more valuable inventory -- cash -- than other
retail operations. Bank employees, from executives to tellers, must have a higher level of
integrity and trustworthiness than employees in most other industries, making the role of HR
in banking that much more important.
Applicant Screening:
Certain jobs do not really require a thorough background check, but any job in a bank
definitely does. Human resource departments in banks must go the extra mile to uncover the
criminal and financial history of job applicants, for the safety of their clients and their
organization as a whole. Banks are highly unlikely to hire candidates with financial fraud on
their records, for example, due to the sheer weight of temptation a position in a bank would
place on someone with that kind of history.
Bank Security:
Human resources departments must design and monitor work processes to reduce
opportunities for internal theft and collusion. HR policies separate cash receiving, storage,
processing and disbursement, and record all activities via video surveillance. In the event that
an employee attempts to steal from a bank, the HR department must handle the legal
paperwork and administrative processes required by court proceedings.

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Pay Decisions:
As with other industries, HR professionals in banks have a hand in making decisions for pay
raises and promotions. Bank workforces are unique in that they often have two methods of
paying employees: salaries for back-office and other personnel, and commissions for sales
employees. Promotion decisions for salespeople selling loans and other financial products
differ from decisions to promote administrative staff. Banks' HR departments must manage
both equitably and strategically to develop the workforce.
Executive Recruitment
The banking industry is highly competitive, and banks constantly navigate a legal minefield
that can devastate companies that step out of line. Finding the right executives is crucial in any
industry, but especially one in which competition is so fierce and legal compliance so
important. Human resources professionals in banks must go the extra mile to recruit the best
executive talent in the banking field, allowing their organizations to thrive and grow into the
future. Human resources departments in corporations must gain approval of the board of
directors before bringing someone in to fill an executive spot, as well.

Treasury department:
The treasury department of a bank is responsible for balancing and managing the daily cash
flow and liquidity of funds within the bank. The department also handles the bank's
investments in securities, foreign exchange and cash instruments.

Net Cash Flow:

The treasury department must ensure that the bank has enough liquidity--readily available
cash--to cover its net cash payments. Cash payments represent checks and wire transfers drawn
on customer accounts. These payments are offset by funds coming into the bank from
customer deposits and incoming wire transfers. The daily net liquidity is managed by either
buying money to cover deficits or selling money to other banks for cash flow overages.

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Investments
The treasury department is responsible for the evaluation, safety and profitability of the bank's
investment portfolio derived from excess funds not used for the origination of customer loans.
These investments range from overnight funds placed with other banks to longer term U.S.
Treasury Bonds.

Risk Management:
The treasury department manages investment assets and liquidity risk by matching them
against the deposit side of the bank. The combined flow of funds and interest rates from loans
and investments must exceed that of deposits for each time period analyzed.

Clearing department or operations:

Same Bank Checks:

These checks, called "on-us" checks, are deposited at and drawn on the same financial
institution. These made up 20 percent of the checks paid in 2006, according to the STATE
BANK OF PAKISTAN. To clear "on-us" checks, a bank's check clearing department makes
the right entries on its books to credit the depositor's account and to debit the payer's account.

Interbank Checks:
These are checks that are deposited into and drawn on two different banks. These sorts of
checks accounted for 80 percent of checks paid in 2006, according to STATE BANK OF
PAKISTAN. To clear these interbank checks, a bank's check clearing department could
present the checks directly to the bank the check is drawn on or forward it to a correspondent
for collection. It could also exchange the checks with a group of banks participating in a
clearinghouse arrangement. Or it could forward the check to a Federal Reserve Bank for
collection.

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Electronic Processing:
In recent years, the number of paper checks being drawn has gone down and more electronic
payments are being used. With electronic processing, banks don't have to transport and process
paper checks. The movement towards electronic check processing gained traction with the
Check Clearing for the 21st Century Act of 2004. This act introduced the concept of a
substitute check, which is a paper copy of the front and back of a check that is the legal
equivalent of the original paper check.

Account Opening / Deposit Department:

Customer is a person who has some sort of account, either deposit or current or some similar
relation. A person becomes a customer when the bank agrees to open an account.
It is contractual agreement between bank and customer after which both concerned parties
indulge in a mutually beneficial business relationship.
"Deposits are the blood of a Bank"
Acceptance of deposits is the real source of income of a bank. Deposits department is the
backbone of corporate banking. Deposit is often used to describe the money, which customers
of all kinds leave with the banks.
Deposits account can be defined as an account, which is opened to earn interest
The term deposit is highly misleading. It is not something deposited for safe keeping, like
currency in a safe deposit box. Bank deposits are not like that. When one brings currency to a
bank for "Deposit" the bank does not put the currency in a vault. It may put a small fraction of

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the currency in the vault as "Reserves" but it will lend most of deposits to someone else or buy
an investment.
Like all banks, deposit department has acknowledged its worth as the most important. Almost
all the operations generate from the deposit department and with due course of time reflect
back to the deposit department.
In order to attract funds, bank has introduced various types of deposits schemes that may suit
the needs and tastes of a large body of depositors.
The relationship of customer starts with this department. Everyone is not allowed to come and
open an account in the bank, for this purpose there should be an introducer who himself is the
account holder in the same bank. He has to introduce the new client by signing the opening
account form and then his signatures are verified.
Applicant's fills the account opening form and provides it to the bank with photocopy of I.D.
card and specimen signatures card. Then the banker inquires about the option of opening a
joint account or individual. If the customer wants to open joint account then it is "either or
survivor" (i.e. only one persons signature is sufficient) or jointly (i.e. both should sign the
cheque).
Functions:
Providing account opening form according to the customer's requirements,
Guide the customer about the requirements of the account opening and form filling
Check the forms whether they are correctly completed or not
Preparing checklist
Stamping on the form
Maintaining account opening register
Pasting of forms in register after release from general banking in charge
Issuance of cheque books
Issuance of accounts maintenance certificate
Closure of account
Verification of signature in case of cheque presented before releasing of account
opening from SS card is not yet scanned
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Types of Accounts:
The customer can open his bank account in order to deposit or withdraw amount. The bank
offers different types of accounts which are as follow:
Current account
Saving account
KASB special Term deposit account
Basic banking account (BBA)
Samar saving account
Business flex account
Account of General Customers
Minor account
Illiterate person account
Individual account
Joint Account
Account of Special Customers
Sole Proprietorship Account
Partnership Account
Limited Companys Account
Agents Account
Joint Stock Company Account
AgencyAccount
Clubs, Societies /Association Accounts Trusts Local Bodies Etc.
Current Account (CD)
The current account is also called CD account and the Code used for this account is 001. It
is a running account, which is continuously in operation, by the customer on all working days
of the bank. It is an open account for which there is no fixed period for deposit. Bank does not
pay any interest on these deposits as they can be withdrawn without notice. Cheques are used
for withdrawals from these accounts. Loans and credits may be sanctioned to the credit worthy
current account holders with ease.
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Current account can be opened by an individual, jointly, and also by the company. The initial
deposit in order to open this account is Rs.10,000.The account holder does not bear any loss
and no profit is given on this account.
There are three options which are given to customer like
Any one:
Any one of the account holder can made transaction.
Jointly:
All the account holders need to be there for making transaction.
Either or survivor:
If one person died than the other can made transaction.
Note: In case of company partnership account, if one partner died than the partnership is
dissolved, than the account was operate as per court order and for this new resolution was
passed by the court.
Saving/PLS Account
The saving account is also called PLS account. The purpose of this account is to induce the
habit of saving individuals in the neighborhood. Though individuals open such accounts for
saving purpose, persons belonging to Armed forces and different military institutions are free
to use this account on current basis.
The PLS/Saving Account may be opened in the name of an individual, or jointly in the names
of two or more persons. These accounts may be opened by charitable institutions or got
provident fund and other funds of benevolent nature by local bodies, autonomous corporations,
companies, associations, societies and educational institutions. This account can be opened
with the minimum deposit of Rs.10, 000. Zakat at the rate of 2.5% is deducted from the PLS
account holders on the 1st Ramazan-ul-Mubarik. Balanced below a certain limit that is
announced by the government every year is exempted from Zakat.The profit was automatically
adjusted by the electronic data division (EDD) on the amount of deposit. The code which is
used for this account is 101.
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The state bank of Pakistan gives facility to different people by giving different feature in
current account like introduce BASIC BANKING ACCOUNT BBA.
Basic Banking Account
The basic banking account is also called BBA account and the code which is used for this
account is 011. This account can be opened individually or jointly. This account is mostly
opened by the
Pensioner
Lower income people
House wife
Students
Salaried person
Maximum two deposits and two withdraw can be made by the account holder in a month. The
bank does not deduct any extra charges even if the amount is less than Rs.5000, but if the
transaction exceeds its limit than the bank charge Rs.25 for every transaction. This account can
be opened with the minimum deposit of Rs.1000. No profit was given on this account.

SWOT ANALYSIS:

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An analysis indicating towards the organizations strengths, weaknesses, opportunities and

threat is termed as SWOT Analysis. Such an analysis is very important for the management in
retaining the strength, overcoming the weaknesses, capitalizing over the emerging market
opportunities, and carving ways to successfully tackle with the threats and ultimately
converting them in the strengths for the organization. In SWOT analysis the best strategies
accomplish an organizations mission by:
1. Exploiting an organizations opportunities and strength.

2. Neutralizing it threats.
3. Avoiding or correcting its weakness.
SWOT analysis is one of the most important steps in formulating strategy using the
organization mission as a context, managers assess internal strengths distinctive competencies
and weakness and external opportunities and threats. The goal is to then develop good
strategies and exploit opportunities and strengths neutralize threats and avoid weaknesses.

During six weeks of my stay, I have come across the following SWOT analysis of the bank.

STRENGTHS:
Over the years, KASB Bank has proved its strength as a Leading Banking Sector Entity by
receiving several awards for quality banking services as well as by achieving many awards.
The major strengths of KASB Bank are:

Public Image:
The organizations showing concern for the people, ethics, and environment enjoy good public
reputation and are able to reap the benefits in the long run. KASB bank management is quite
sensitive to this issue.

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Customized Solutions:
The management of the bank believes in customer focused banking rather than the product
oriented banking. The products and services designed by the bank are specifically tailored to
the individual needs of its customers.

Training To Imrpove Customer Services:

KASB Bank is providing specialized services to the customer, thats why a customer feels that
he is of some value to the bank. It is because of the personalized services that KASB Bank has
been able to create its value in the market. To maintain it the KASB Bank keeps on training its
employees so as to improve its service level.

Automatic Operations:
The operations performed by the bank are highly automated that result in assurance for the
customers that their transactions are completed reliably, efficiently and securely.

STRICTLY FOLLOWED RULES &REGULATION:

The employees at KASB bank are strict followers of rule & regulation imposed by bank. The
disciplined environment at KASB bolsters its image and also enhances the over all out put of
the organization.

WEAKNESSES:
Though KASB bank has won a several awards and achievements, yet the internal environment
of it faces a number of weaknesses, which needed to be resolved. The major weaknesses of the
bank are:

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Decision Making Participation:

Employees are not involved in any sort of decision-making whatsoever. Quoting my own
observation; if the employee sets an increment or not; top management is not concerned
to share the implications with the respective person.

No Marketing For The Lower Class:

In this age of marketing when everything is marketed, the bank does have a good
marketing strategy but the problem is that it does not cater to the lower class customers
according to me, which is the largest group in Pakistan.

Objective Clarity:
Department objectives are not present in a written form to be served as a guideline for
new employees. The day employee joins the organization; supply work is assigned
irrespective of a set guideline or objective pattern. So it is certain that difficulties emerge
due to obscene of track of direction.

INEFFICIENT COUNTER SERVICES IN THE RUSH

HOURS:
During the rush hours, the bank is founded out to be a total flop to handle the mob of people
peaking from windows and doors. The bank has deficiency to operate in the stages of rush
hours where the people find them services entangled in a situation of nowhere because they are
not well served.

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Opportunities:
The emerging global trends and development in the service sector have created new
opportunities, trends and challenges for KASB Bank in the realm of corporate strategy. KASB
The opportunities for KASB Bank are:

Technological Innovations:
KASB enjoys a strategic competitive advantage over all domestic banks by virtue of its
leadership in technological innovations. KASB BANK has fully automated transactionprocessing systems for back-office support. Its branch network is connected on-line real-time
and its customers have access to off-site as well as on-site ATMs all over the Pakistan.

Opportunities For Small Scale Enterprises:

There is a great opportunity for KASB Bank to cater to the needs of small enterprises,
which remain largely inmate from the present banking sector. This can be achieved
through exploring new clients as well as attract the clients of existing banks where most
of the clients are not very satisfied.

ELECTRONIC BANKING:
The world today has become a global village because of advancement in the technologies,
especially in communication sector. More emphasis is now given to avail the modern
technologies to better the performances. KASB can utilize the electronic banking opportunity
to ensure on line banking 24 hours a day. This would give a competitive edge over others.

Threats:
We live in a whirlpool of domestic banks, giving their best service nationwide, so its
challenging for KASB bank, in this competitive era to attract new customers and keeping its
old customers satisfied so they would not switch to other banks. The threats faced by KASB
BANK are as follows:

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Intensity In Competition:
Fierce competition for deposits among financial institutions had led to rising cost of
deposits. Deposit mobilization has been tougher due to emergence of large no. of new
banks and availability of high yield certificates of investments.
The customers have emerged as the main beneficiaries of the competition. Now they are
getting more personalized services and innovative products. The concept of evening and
Saturday banking, telephone and online banking, ATMs and credit cards are a direct
result of the intense competition. As a result the profitability of the industry is going
down due to intense competition for choosing cheap deposits and risk worthy borrowers.
Most important implications for industry competition:
a)

Quality services

b)

Innovative deposit products

c)

24-hours banking

Bad Debts:
A serious threat is present in terms of bad debts. Due to various unfavorable factors the
shortcoming in the credit portfolio can become a serious threat to earning. Considering
the banking industry there is said to be Rs.77.10 billion worth of loan that are non performing or bad.

CUSTOMERS COMPLAINTS:
There exists no regular and specific system of the removal of customer complaints. Now a day
a need for total customer satisfaction is emerging and in their demanding consequences
customer's complaints are ignored

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Rivalry among competitive firms:

It is a very powerful force among the competitive forces the strategies pursued by one firm
can be successful only to extent that they provide competitive advantages over the
competitor. These competitive strategies may be lowering prices, best quality series. The
KASB is offering very low charges an pay orders, telegraphy transfer, mail transfer and
give other additional services to the customers and to the Nation.

Potential entry of new competitors:

Whenever new firms can easily enters a particular industry, the competition increases. The
govt restriction, tariffs, patents etc can stop new firm to enter into the business as per
Banking industry is concerned this market is already very situated in Pakistan and there are
banks with quality services and low charges. So there is no threat to KASB from potential
entry.

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Chapter no 2:
Internship activities:

Detailed description of activities performed by the internee.

Management style.
Skills learned during BBIT studies.
New things learned.

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Detailed activities performed :

First day at KASB BANK was an introduction day. We all interns were introduced with
different people over there. Mr. Miyan Hamid Mahmood who is the branch manager of
wahdat road branch gave me a brief introduction of all the regulations and policies of the bank.
After this meeting SIR ABBAS who is working as an operational manager gave me an
introduction with all other employees working in that branch. He made me familiar with this
branch banking. On second day I as an intern was introduced with MAM SAAYEDA SANA
FATIMA who is the CRO (CUSTOMER RELATIONSHIP OFFICER). She gave an
overview about the departments of KASB BANK. Then I was attached with her. First week
was the orientation week. I was circulated in all departments. The employees of different
positions gave me the introduction of respective jobs.
After having the knowledge of branch banking, In the second and third week of my internship
I was attached with CRO ( MISS SANA FATIMA). She told me about how to deal with
customers for that she told me to greet every customer first and then guide them according to
their needs. She tried to explain all the necessary points which she can in a very busy time. She
told me about the products of bank and the activities she performed on daily basis like first of
all changing the FOREIGN CURRENCY RATE LIST on notice board.
She taught me how to fill deposit slips, cheques and pay order. Then told me about HOD
(HOST OF DAY) in which all the daily activities related to service dealing were conducted
daily by all employees according to their schedule and this (HOD) record was sent to service
quality manager. She has to maintain the records of COMMENT CARDS. Comments cards
were filled by the customers and were dropped in the drop box.
She told me about how to receive the phone calls internally as well as external calls. How to
greet customers and how to deal with them according to their queries .It was all about
customer relationship and customer dealing .
Daily figure report was also maintained and this was also a new thing for me. In this all the
report of withdrawl and deposit are written.

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She taught me about stamping i.e updating stamps daily. Stamping each leaf of cheque book.
Told me about packing list that has to be maintained and sent with every mail in which
account title, account number, and subject were mentioned.
In the fourth week of my internship program, I was shifted to the Accounts Opening
Department. I worked under the guidance of a very efficient and nice employees of KASB
BANK MR RAZI ABBAS And MR ADIL LODHI who are experts of Accounts
Opening. They tried to explain all the necessary points which they can in a very busy time.
In this department, I gain the practical knowledge about opening account. Working with the
Accounts opening department gave me a lot of courage as it taught me the way of how to deal
with customers. This department deals with opening current and saving account for its
customers and all matters regarding thereof.
They taught me how to fill an account opening form. Told me about the requirements for
opening an account.
Ss card ( specimen signatur card)
Cheque book request
Atm request
Debit card request
Kyc (know your customer) it has to be completed by officer in which all the detail of customer
has to be written.
All these are written in an account opening form. Besides these all the necessary information
about account is written in it and has to be filled very carefully as it has to be sent in CAO
centeralized account opening department that is in Karachi. And the whole system is
centralized now. Taught about dormant accounts.
I learned a lot here as well.

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Fifth week of my internship program I was sent to MISS QURAT UL AIN she was CSO
customer service officer and cashier as well. She was very kind and guide me very well. As
cash area was prohibited. So I was not allowed to go there but she taught me all the procedure
and practical work of cash department. I was taught about the whole procedure of lockers that
is so complicated for me and sensitive as well because its all about cash and security.

Last week of my internship i was sent to the operational manger again SIR MUHAMMAD
ABBAS.
I learned many new things from him. He was very supportive and kind.
He taught me about clearing process (inward and outward)
Remittance (inward and outward)
Discripent cheques
Payment order
Same day clearing
Mystery shopping
I learn above activities while working in that section. It is the department which is responsible
for the clearance of the inward and outward instruments, presented for collection by the clients
or third party.
Meaning of Clearing
The word clearing has been derived from the word Clear and is defined as:
A system by which banks exchange cheques and other negotiable instruments
drawn on each other through a reliable institution referred as NIFT and
thereby secure payments for their clients through the clearing house at specified
time in an efficient way.
Explanation
By clearing means sometimes the account holder of KASB bank present a cheques, which is
not drawn on KASB bank but the person, has an account in KASB bank Limited. In this case
bank accepts this cheque in clearing department and later on collets the amount from bank on
which cheques is drawn through clearing house. This function is called clearing.
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Clearing House
Initially state bank of Pakistan provides the facility of clearing in its clearing house where
representatives of all banks sit together and interchange their claims against each other. But
now state bank of Pakistan has assigned this responsibility to National Institute of Facilitation
Technologies (NIFT).
It is one of the services provided by NIFT to other commercial banks. NIFT acts as a
clearinghouse. Different banks are the members of the clearinghouse. A representative of each
bank represents his bank in the clearinghouse.Each bank has collected cheques as behalf of
their customer but these cheques are not drawn on their own bank so in the clearinghouse, they
hand over these cheques to respective banks on which these cheques are drawn. Similarly each
bank receives cheques from other banks if any.
Types of Clearing
There are four types of clearing:1. Inward Clearing
Those Cheques and other negotiable instruments which are drawn on KASB Bank wahdat road
Branch Lahore, sent by other banks, constitutes the inward clearing of KASB bank. After
having all the stamps and dates of cheques confirmed, the concerned drawers accounts are
debited in KASB bank wahdat road branch Lahore.sInward Return
Return may be of any reason: Presentation Flaw e.g. Clearing stamp not affixed or wrong discharge given by
collecting banker.
Defect in the Cheques i.e. Post dated cheques, unauthorized cutting.
Insufficient Balance

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2. Outward Clearing
When cheques and other negotiable instruments drawn upon other banks like City Bank,
MCB, ABN-AMRO or Bank Alfalah of the same city (Lahore) are presented in KASB Bank
Wahdat road Branch to deposit them in the respective payees accounts, these instruments are
lodged in outward clearing of KASB Bank Wahdat road Branch.
Outward Return
Cheques return will be treated as inward cheques.In case the cheques is returned because of
wrong presentation e.g. clearing stamp not affixed or wrong discharge given on the cheques
etc. it should be relodged in the next day clearing after rectification of the mistake.
If the cheques is returned for any other reason then

Enter the cheques in cheques return register, mentioning the reason as appearing on the
cheques return memo received from the paying bank.

Advice the customer about fate.

Return the cheques to the customer after getting sign on the register.

Collect the cheques return charges as per S.O.C (Schedule of charges).

3. Inter City Clearing

The cheques that are presented in intercity clearing are of another city and received by air. In
this type of clearing the bank confirm at that time that the cheques are clear or not and give to
the rider.
4. Same Day Clearing
The cheques that are presented in same day clearing are the local cheques and these cheques
are clear in same day. Basically it is the benefits that are provided to customer. It is arranged
due to the rush of work arising out of say, more Holidays declared by the Central Govt. at a
time.

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Clearing Process
Stamps Put On the Cheques
When the cheques are presented in KASB Bank Wahdat road Branch to be deposited in their
respective payees accounts, different stamps are put on cheques before their lodgment in
outward clearing.
Crossing the cheques
Crossing means two parallel lines, drawn across the face of the cheques with or without words
written in between them. Crossing may be general or special. In clearing, cheques are crossed
specially. Cheques are stamped with banks name between two parallel lines to constitute
special crossing. After the cheques have been crossed specially, the holder cannot receive
payment except through the banker named on the cheques crossing saves the instrument to go
it in illegal hands. If, crossed cheques is lost or stolen, there is no risk involved. So it is an
effective means of minimizing the risk of loss.
Clearing Stamp
After the cheques have been crossed specially, clearing stamp is put on the cheques and other
instruments, with the next date, so these cheques would have to be presented in their
concerned drawee banks on the subsequent day.
Endorsement Stamp
The word endorsement means anything written or printed on the back of an instrument. So
endorsement stamp has to put with words Payees account Credited in KASB Bank Wahdat
road Branch Lahore.

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National Institutional Facilitation Authority
After putting these three stamps on cheques & other negotiable instruments, they are sent to
NIFT. NIFT after segregating the cheques of different banks delivers them to their concerned
banks.
Send Report to the Bank
After delivering the cheques to different banks NIFT send report to KASB Bank Wahdat road
Branch Lahore, then the banks staff tally the amount of that report for its own record.
Delivered Cheques to Respective Banks
Next morning, these cheques are delivered to the respective banks between 9:00 to 9:30AM. In
the same manner, other banks present their clearing drawn on KASB Bank. Total number of
cheques and their amount delivered to other banks and received from them are written on the
Clearing House schedule branch for their payment. After proper scrutiny of cheques,
verification of signatures and confirmation of balance in the account, the Officer Clearing
Department Debit the customer Account. If any cheque is not passed due to insufficient
balance or any other reason, Officer Cash Department returns the same cheque by attaching a
cheque return memo containing reason for return.
Credit the Customer Account
If the cheques are clear then the KASB Bank Wahdat road Branch Lahore credit the customer
Account. If the bank receives the outward return due to any reason then this cheque is entered
into the cheque returned register and bank charges are deducted according to the schedule of
charges.
Then send the outward and return inward as IBDA (Inter Branch Debit Advise) to Main
Branch. And main branch sends outward return and inward to KASB Bank Wahdat road
Branch Lahore.

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Remittance Department

The same employee (Mr. Abbas) who was working in clearing, he also has the
responsibility of the Remittances activities.
When money is transferred from one place to another place or from one country to another
country to fulfill the requirements of the customers by the order of the customer, it is called
remittance.
Remittance can be made through:
Instrument transfer
Electronic transfer
Mail transfer

Instruments of Remittance Department

Demand Draft
A demand draft is an instrument, which is drawn by one bank upon another bank for a specific
sum of money payable on demand. It is made by the bank and given to the purchaser against
cash or cheque. If two banks are involved, then one bank sends a DD to another bank. But in
customer - Bank case the customer sends his DD to the receiver. Charges of DD are taken from
the system according to the amount.

Types of DD
DDs are of the following types:
1.Crossed DD:In the case of crossed DD the amount is deposited to the A/c of the beneficiary.
2. Open DD: In case of open DD the amount is handed over to the beneficiary at the cash
counter.
Issuance of DD
A demand draft application is given to the customer; he fills in relevant information
and signs it.
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On the application form following particulars are given:
o Name of beneficiary
o Amount
o Mode of payment
o The place where DD is drawn
o Signature
o Name and address of the beneficiary
The Officer in charge then checks the information form.
The charges such as commission, excise duty, postage is charged as per effective
schedule of charges. If he fills the tax exemption form, tax is not charged.
In case of cash deposit the cashier counts the amount & signs the DD application and
then enters it in the register.
The cash received equals the amount of remittance & the cheques there on.
Then the officer of remittance department signs it and operation manager counter signs
it.
The entry is made in the DD issuing register, DD is given to the customer.
Vouchers are prepared and posted.
DD advises are printed and mailed to the respective branch.

Payment Procedure
On the contra, when a DD is received i.e. a customer comes to bank with the DD, the
procedure is as follows.
The DD credit advice is received through mail. The numbers are checked & signatures
are verified.

An entry is made on the DD payable register, and the vouchers are made.
The Branch
DD payable

Dr
Cr
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The DD credit is attached with the vouchers and given for the posting to the computer.
When DD is received, the test numbers are checked, and the payment is made.
The vouchers are given for posting and the entry that was made in register is closed.
I.e. DD payable is Nil.

DD Payable Register
Every day you receive an IBCA from different banks and it contains a list which has been
drawn on you. Bank records it in DD payable register. These DD are those which other
branches have drawn on your bank.
Payment of DD from Suspense A/c
The payment of DD is made from the suspense account in the following cases:
The amount of DD is paid from suspense a/c if advice is not received yet.
If a DD is to be cancelled on the wish of the customer, in such a case the payment will
be made from suspense A/c.
Cancellation of DD
Following procedure is followed for the cancellation of the DD.
Obtain the application in writing for the cancellation of DD along with the original DD.
Verify the signature of the applicant which should tally with the signature on the
application form (for opening the DD).
Mark caution on DD issued register or on computerized entry.
Make the payment from suspense account.
Inform the Drawee bank regarding the cancellation and ask for IBCA. Inter Branch
Credit Advice, is the advice regarding the payment (refund) of the amount which
Drawer bank have sent to them (which was deposited by the customer against the
demand draft).
When a demand draft is made, an IBCA is sent to the Drawee bank regarding the
payment.

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Management style:
A Management Style is determined by the culture of an organization, and personalities of the
personnel working there. As far as the management styles at KASB bank are concerned, there
is both centralization and decentralization to some extent. Management must adopt some
administrative style to get all the activities done effectively and efficiently.
A survey about job satisfaction was carried out and its judgment was that most pleasing thing
that motivates a number of employees at work place was Appreciation. In authoritarian styles,
Managers as technical experts who control and direct the employees work are replaced by the
effective managers as opinion leaders who work as counselors and facilitators in participative
style.
Mainly, there are two kinds of management styles that are adopted by KASB Bank:
Authoritative Management Style
Participative Management Style.

Authoritative Management Style:

In Authoritative Management Style, higher management is considered to be all in all for taking
decisions, considers its views to be most authentic and uncertain about others decision taking
abilities. Management exerts its rigid rules and expects employees to be obedient to them. For
example, a manager who takes complete control of employees work and direct them to follow
his rules without considering their views would be demonstrating an authoritarian management
style.

Participative Management Style:

A Participative Management Style is considered as the one in which employees organize
themselves according to effective managers techniques, analyze the situations, focus on
inspiring creativity, take on the responsibilities, actively participate at all levels of organization
and their input is considered. The benefit of this style is a result that employees feel like the
owner of their company and their opinion has some worth to be taken into account.
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There are a number of benefits which KASB Bank can give to its employees in the form of
Participative Management Style. One of the biggest benefits is to evoke a sense of ownership
that each employee feels and get motivated towards achieving their goals. It is common to
notice that when employees are given this sense they become more receptive to any change
and respond in a better way as their voice can be heard and responded now. Another outcome
that can be achieved through this style is innovation and uniqueness. Obviously when more
brains will be indulged in taking a decision other than mangers and top management, a better
outlook of a decision in form of an improved product or service can be acquired.

IMPACT OF MANAGEMENT STYLE ON EMPLOYEES:

Management styles have a great impact on the overall working of an organization. The key
issues, which can arise due to strong authoritative actions by the management, can be of the
following nature:
Absenteeism
Irresponsible behavior
Coordination
Reporting time delays
Turnover

But at KASB Bank these issues have never been provoked till now. This is due to the fact that
employees have been given equal importance as been given to high level operatives. The
following important aspects need consideration.

Motivation:
The management styles adopted by the bank affect greatly, and employees are motivated in
order to enhance their performance and achieve the derived goals.

Morale and Productivity:

The employees of the bank possess high confidence, and thus exhibit high productivity. The
employees are happy and are also productive workers. Job attitudes and morale are quite
positive for two reasons. Firstly employees gain social satisfaction from interactions at the
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work place. Working conditions and supervision are good; secondly high morale results from
high motivation to produce. In other words we can say that management should put its eggs in
the basket that creates a high-motivated work force.

Job Efficiency and Satisfaction:

Consequently the overall impact of the well-equipped management styled organization is the
job efficiency and job satisfaction. At KASB Bank the employees are very much satisfied with
the job and the overall working conditions of the bank, so in due response, the bank is
enjoying high efficiency in managing the time delays in reporting and working operations.

APPLICATION OF THE KNOWLEDGE LEARNED DURING

BBIT STUDIES:
Application of the knowledge learned during BBIT studies in a way that I were
already familiar to many things

NIFT(process of clearing)

Bonds

Islamic financing(Mudaraba, Murabaha,Musharakah)

Foreign Trade(Export, Import & documents used for export & Import)

SMEs

Micro Financing

Deposits by commercial banks

Current accounts

NBFIs

Remittances(payment orders, bank drafts, Govt drafts)

Letter of Credit

Payments & Receipts

Credit Risk

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NEW THINGS LEARNED:

I learned many new things during an internship program at State Bank of Pakistan.

HOD (host of day)

Deposit slips filling

Pay order filling

Packing list

Cheque book stamping

Account opening process

Clearing process

Dormant accounts

Different types of accounts

Locker process

Dfr(daily figure report)

Mystery shopping

CBC(call back customers)

Customer greeting

Call receiving and transferring

I would like to add that this Internship built good traits in my personality such as awareness of
the banking system and its departments. Although, a period of six weeks is not enough to learn
the complex operations of KASB Bank. but I have made efforts to converse them
comprehensively in this report. My educational career really concluded my Capabilities and
logical concepts through my internship. The internship training provides a surface to obtain
better knowledge about Central bank operations and to get sound experience for practical
stage.

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CHAPTER

Summary and recommendations:

Overall summary
Specific recommendations for the:
1. Organization
2. IBIT to improve its criteria and methods of
teaching to BBIT students
3. For the next internship in this organization

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SUMMARY & RECOMMENDATIONS

SUMMARY:
The ingredients and constituents of this report are all the activities performed at KASB
BANK. Firstly I have given Pakistans Banking Sector Revolution and major changes that
have occurred in the banking sector during the last decade are described. I have given a brief
introduction of KASB BANK and its major functions/purpose. I have explained the formation
of KASB BANK and objectives behind structuring it. The core functions and role of KASB
BANK in the economy is presented with its core responsibilities. I have also discussed the
general profile of the bank and departmental structure. I have also discussed KASB BANK
offices and its hierarchy in a branch. I have given a brief overview of the departments of
KASB BANK. I have given a detailed introduction of the BRANCH BANKING. I explained
this with the working procedures. I have tried my level best to give understanding about the
BANKING FIELD. Themanagement styles of the managerswith whom I associatedis also
informed in the report. I have also mentioned the application of the knowledge learned during
BBIT studies in internship activities. I have also discussed the things that I learned during an
internship program at KASB BANK. Apart from that deficiencies and problems are
observed and notified in the bank and with respect to them appropriates solutions and
recommendations are being addressed in the report. This is because, the KASB BANK
overcome the problems to perform its responsibilities in an effective manner and timely. I have
also given some recommendations to IBIT regarding teaching methods. I have also done a
Swot Analysis of KASB BANK.

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RECOMMENDATIONS FOR KASB BANK:

Recommendations for KASB BANK are as follows.

Provide LOAN FACILITIES to the customers.

KASB bank should initiate awareness program for new employees.

Media program & 2-3 minutes advertisement about new schemes & any new
modification.

Training program for employees.

Running facility should be provided in most of the products.

KASB bank should initiate separate scheme for group of farmers with relaxed
criteria.

Must open more new branches.

Must introduce more attractive products for customers.

Must Encourage innovative business plans .

There must be a centralized system through which necessary information about the
commercial bank should be kept within the departments.

Demand draft facility must be provided at more advance basis or it must be removed
because it is usage of resources and time for the bank.

The officials are following the old instructions of the manual. These instructions must
be updated by the management.

There must be training programs in the bank about operations of Islamic banking .If
banker know clearly about the transactions nature so they provide good and correct
information to their clients.

There must be Product development in Islamic banking because customer has more
choice. Most of the customers interested in profit so Islamic banks should introduce
products which are according to shariah and customer get profit from it.

Awareness programs should be carried out more frequently in collaboration with

employees and managers.

There must be introduced a long term financing facility.

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Parking area must be neat and clean.

Cash counter must be prominent to avoid ambiguity of customers.

Display on all the counters will be helpful in guiding customers. This will also save
time and attention of the inputter.

In order to avoid system freezes and hang ups IT department should be updated to
facilitate fast execution of transactions.

Location of branches must be noticed.

RECOMMENDATIONS FOR IBIT:

I would like to give following recommendations to IBIT:
i.

Internship program must be conducted in the last semester of BBIT.

ii.

Internship program must be arranged by the department

iii.

Favoritism of teachers for the students must be eliminated.

iv.

If students dont want to study from a teacher whom they are not satisfied and they also
complained for that teacher than management must take action about that teacher.

v.

Students come with different background (engineering or medical) IBIT should first
teach them basics because students find difficult in understanding new concepts of IT.

vi.

IBIT takes consecutive papers. There should be a gap of at least one day before the
next paper.

vii.

Students get frustrated by giving one exam at evening time and the very next paper in
the morning time. They dont get enough time for their preparation. So timings of
exams must be noticed.

viii.

Most of the students are weak in IT because they dont know about the basics so in first
semester those teachers must be hired for students who will teach them basic concepts
not deep concepts like senior teachers of IT .

ix.

IBIT must arranged study trips and festivals.

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.

INSTITUTE FOR THE NEXT INTERNSHIP IN KASB BANK:

KASB BANK properly manage the internship program and carries out this program with the
help of its employees. It selects the toppers from different universities like Punjab University,
University of Central Punjab, Hailey College of Banking and Finance, Beacon house National
University, Lahore School of Economics etc. All students work together and share their
valuable knowledge with each other. This is how you can also learn. When it comes to your
career, KASB understand that choices are important. Some people want a choice of
development opportunities. Others want a choice of the areas they may work in. Everyone
wants a choice of rewards and benefits.
KASB is a business that values people from all backgrounds, experiences and walks of life.it is
looking for people whose ambition matches its. People with the enthusiasm, resilience, and
commitment to build long term careers and realize their full potential. Team players with the
drive and initiative to manage their own workload and forget their own career development.
While talking about the management I would like to say that management is very effective and
efficient. If I talk about the Employees of this organization, they are very corporate and polite.
They are very concerned with their work. They are very dedicated. They treat the interns
without any discrimination. Their tremendous support, valuable guidance, great help, kind
behavior and moral support make the internees to fulfill the requirements of internship. It
arranges special orientation sessions for the interns. Interns are not supposed to do the practical
work. They will select one department on which they are required to do the complete analysis
of the department.

Students pursuing PhD, Masters degree or senior students of Bachelors honors program in the
discipline of economics and business from the prescribed universities can apply. Further, the
students should have knowledge of banking sector and financial terms so as to meet the pre-

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requisite of doing research work and feel comfortable while interacting with counterparts at
KASB BANK.

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