In the name of ALLAH the Most beneficent & the Most Merciful

Banking Issues
Presented By : Waqas

Khan

Assigned By : Sir. Kamran Khan

Introduction
To be discuss some Issue with current information in banking. These Issues are about: Profit on saving account Withdrawal Limits on saving account. Short term and long term loan. Rate of interest on loan Secure Loan Intra Bank cheque. Interest Rate decrease in Monitory Policy 2012. Punishment on Dishonoring of Cheque.

Important Issues
Which Bank Providing highest Markup on Saving Account? Withdrawal limit on saving account. Tenure of short term and Long term Loan and Difference in their rate of interest. Issues of rate of interest. Secure loan under bailment of property documents. Issue of Intra Bank Cheque. Views on Rate of Interest decrease by State Bank Of Pakistan. Dishonouring of Cheque

Highest Markup on Saving Account

List of Rate of Interest on Saving Account of Different Bank:
Bank Name Meezan Bank
United Bank Limited Habib Bank Limited Faysal Bank MCB Standard Chartered Summit Bank

Rate of Interest 5%
6% 7.19% 5% 6% 6% 9.5%
On Average monthly minimum maintaining balance On Average monthly minimum maintaining balance On Average monthly minimum maintaining balance On Average monthly minimum maintaining balance On Average monthly minimum maintaining balance On Average monthly minimum maintaining balance On Average monthly minimum maintaining balance

Chart of Rate of Interest:

Rate of Interest
Rate of Interest

9.50%

7.19% 6% 5% 5% 6% 6%

Meezan Bank United Bank Limited

Habib Bank Faysal Bank Limited

MCB

Standard Chartered

Summit Bank

Highest Interest Rate:

Summit Bank provide Highest Interest Rate on Saving Account i-e 9.5% Reason: Summit Bank is a new Bank in Pakistan. As every Bank wants to captured more and more customer so thats why Summit Bank attracts customer to open their account in Summit Bank by providing them highest interest rate.

Withdrawal Limit on Saving Account

Withdrawal limit on Saving Account in Mostly Bank is unlimited except of Habib Bank limited. Habib Bank restricted their customer to maintain at least Rs. 20,000 in their account other wise they will charge. You can withdraw any amount from your saving account, as in current account. But the profit given to customers by bank is on average monthly maintaining balance.

Short Term & Long Term Loan

Short Term Loan:
Short term Loan is a loan which tenure is One Year. You have to pay the Loan in one year. In some Banks Tenure of Loan is 1-5 Years

Interest Rate on Short Term Loan:

Interest Rate fix Interest Rate keep high as compare Long term loan. Tenure is 1-5 Year.

Short Term & Long Term Loan

Long Term Loan: Long term Loan is a loan which tenure is more then One Year and may be 5-20 years. Interest Rate on Long Term Loan: Interest Rate keep low as compare Long term loan. Tenure may be 5 years to 20 years.

Issues of rate of interest.

Interest rate on Secure Loan (Long Term Loan).

KIBOR+4.6%=Applicable Rate Annually Compound Interest Tenure 5-10 years

Issues of rate of interest.

Interest Rate on Personal Loan ( Short term) Tenure 1-5 Years Applicable Rate = 25-30% (Vary with Customers) Upper limit = 25% Lower Limit = 30% Hidden Charges: Late Payment Charges: Rs. 1000 Pre-Payment Penalty= 5% of outstanding Principle balance

Chart Of Interest Rate on Personal Loan

Consumer Segment Income 10000-11999 Top up replenishment >12000 Personal Loan Tenure 1-3 yrs 1-3 yrs 4-5 yrs Rate 28.99% 25.99% 28.99%

Issue Of Secure loan against property

Loan to Value (of property) till 70% Bank is liable to sell the property in case of non payment Owner ship transferred to the Bank is case to non payment. Bank sell property through auction to recover their amount. No payment will be return to unpaid borrower in case of non payment.

Issue of Intra Bank Cheque.

Intra Bank Cheque.
In case of Normal Account:
Cheque cannot be cash from any branch of Bank. Cheque can be deposit in account and payee will pay charged some amount in clearing of the cheque.

In Case of Online Account:

Cheque can be cash in any Branch of Bank.

State Bank Decrease Rate 12% to 10.5%

State Bank of Pakistan has announce its new Monetary Policy with a 1.5% decrease in the interest rates. With this reduction, the interest rate reduced from 12% to 10.5%. The new Monetary Policy was announced by Governor State Bank, Yaseen Anwar. Dated : 10-Aug-2012

State Bank Decrease Rate 12% to 10.5%

Views Of Governor State Bank:

Yaseen Anwar blamed the electricity crisis to be the main driver of economic instability. He said that the private sector credit was affected the most as a result of this crisis. So SBP slashed the rate of interest to increase the credit of Private sector.

State Bank Decrease Rate 12% to 10.5%

Views On Policy by Presenter Waqas Khan:

In my Views the decision to decrease mark up rate from 12% to 10.5% is essential for reviving the business activities, encourage new investments which would ultimately improve the economic growth of the country.

Dishonouring of Cheque
[Pakistan Penal Code (XLV of 1860) Section 489-F]

Dishonestly issuing of a Cheque.

Whoever dishonestly issue a cheque towards re-payment of a loan or fulfillment of an obligation which is dishonored on presentation, shall be punishable with imprisonment which may extend to three years, or with fine, or with both, unless he was establish, for which the burden of proof hall rest to him, that he had made arranges with his bank to ensure that the cheque would be honoured and that the bank was at fault in not honouring the cheque.
Inserted On : Dated : 25-10-2002

Thank You

CREDITS:
Special Thanks To: Sir Kamran Khan. Mrs. Shehrish Rizvi Mr. Ahsan (Manager Finance UBL) UBL Bank HBL Bank Jauhar Degree College