Branch Banking in Pakistan

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• Lecture 20
• Branch Banking in Pakistan

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• A branch, banking centre or financial centre is a
  retail location where a bank or financial
  institution offers a wide array of face to face
  service to its customers.

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"Banks"
National financial institution providing personal
and business services.
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Bank Structure
President
Group Heads
Divisions Field
Circle Offices
Regional Offices
Branch Offices
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Remittances
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Remittances Department

• Demand Draft
• Pay Order
• Telegraphic Transfer
• Mail Transfer

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• Travelers Cheque
• Fund Transfer through Internet
• Home Remittances

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Demand Draft
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Demand Draft

• Its a written order, drawn by one branch of a
  bank upon another branch of the same bank, upon
  other bank under special arrangement to pay a
  certain sum of money to or to the order of a
  specified person

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• Parties Involved
• Purchaser
• Issuing Branch
• Drawee Branch
• Payee/ Beneficiary

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Pay Order
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• A Pay Order is a written authorization for Pmt
  , Made in a receipt from issued Payable by the
  bank, to the person named addressed therein on
  his giving a proper discharge thereon

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• Parties Involved
• Purchaser
• Issuing / Paying Branch
• Payee

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Telegraphic Transfer
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• T.T instructions regarding PMT are sent to
  Drawee branch in a coded language and under
  confidential number known as TEST Number

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• Parties Involved
• Applicant
• Remitting or Drawing Branch
• Drawee Branch
• Beneficiary /Payee

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Mail Transfer
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• Like T.T funds can be remitted by MT for the Cr
  of the payee a/c or the Beneficiary can be
  advised to receive the PMT from Drawee branch
  either in cash on proper identification or
  through his banker

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• Parties Mail Transfer
• Applicant
• Drawing Branch
• Drawee Branch
• Beneficiary

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Online Fund Transfer

• Its also a fund transfer but only by Online
  within the Branches.
• Parties Involved
• Applicant (a/c in Bank)
• Beneficiary (a/c in Bank)
• 2 Branches of Bank (online)

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Account Opening Department
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• Types of Account
• Individual
• Joint Account
• Sole Proprietorship
• Club Societies
• Joint Stock Companies
• Agents

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Operations Status Of Accounts
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Nature Of Accounts

• Current Account
• Profit Loss Sharing
• Current foreign currency
• Saving Foreign Currency
• Term Deposits
• BBA Basic Banking Account

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Deposit
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• Commercial Bank deposit products offer you an
  array of privileges and services. Designed with
  your banking needs and comfort in mind, these
  convenient accounts prove that, at Commercial
  Banks, banking is about a shared long-term
  relationship between bank and you.

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• Current Account
• The Current Account allows you the facility of
  unlimited withdrawals up to the extent of the
  balance in your account. Sometimes There will be
  no tax deducted on the funds that you choose to
  keep in these accounts.

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• Savings or PLS Account
• The Savings Account allows you the facility of
  unlimited withdrawals (up to the extent of the
  balance in your account), while accruing profit
  on your deposit everyday. You can have the profit
  paid to you monthly, quarterly, annually or as
  per your requirement.

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• The passbook is the traditional document to keep
  track of earnings in a savings account .

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• Term Deposit
• The Term Deposit offers you the dual benefit
  of attractive returns with high liquidity, with
  options to take your profit monthly, quarterly,
  annually or at maturity.

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• A time deposit (also known as a term deposit,
  particularly in Canada, Australia and New
  Zealand) is a money deposit at a banking
  institution that cannot be withdrawn for a
  certain "term" or period of time.

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• When the term is over it can be withdrawn or it
  can be held for another term. Generally speaking,
  the longer the term the better the yield on the
  money. A certificate of deposit is a time-deposit
  product.

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• A deposit of funds in a savings institution under
  an agreement stipulating that
• (a) the funds must be kept on deposit for a
  stated period of time,
• b) the institution may require a minimum period
  of notification before a withdrawal is made

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• Foreign Currency
• You have the option of opening Current,
  Savings and Term Deposit accounts in different
  foreign currencies Like US Dollar, Pound
  Sterling, Japanese Yen, and Euros. This entitles
  you to avail all the convenience of local
  currency accounts including

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• Unlimited cash withdrawals up to the balance in
  your account
• Deposits facility
• Profit accrued on a daily basis
• Automatic rollover of deposits
• As per State Bank of Pakistan circulars/regulation
  s

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Demand account

• The cheque is the traditional mode of payment for
  a demand account.
• A demand account or demand deposit (North
  America checking account, UK and Commonwealth
  current account) is a deposit account held at a
  bank or other financial institution,

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• For the purpose of securely and quickly providing
  frequent access to funds on demand, through a
  variety of different channels.

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Commercial BanksLoan Facilities
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Loan

• A loan is a type of debt. All material things can
  be lent but this article focuses exclusively on
  monetary loans. Like all debt instruments, a loan
  entails the redistribution of financial assets
  over time, between the lender and the borrower.

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• The borrower initially receives an amount of
  money from the lender, which they pay back,
  usually but not always in regular installments,
  to the lender. This service is generally provided
  at a cost, referred to as interest on the debt.

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• A borrower may be subject to certain restrictions
  known as loan covenants under the terms of the
  loan.
• Legally, a loan is a contractual promise of a
  debtor to repay a sum of money in exchange for
  the promise of a creditor to give another sum of
  money.

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• Secured Loan
• A mortgage loan is a very common type of debt
  instrument, used by many individuals to purchase
  housing. In this arrangement, the money is used
  to purchase the property. The financial
  institution,

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• however, is given security - a lien on the title
  to the house - until the mortgage is paid off in
  full. If the borrower defaults on the loan, the
  bank would have the legal right to repossess the
  house and sell it, to recover sums owing to it.

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• In some instances, a loan taken out to purchase a
  new or used car may be secured by the car, in
  much the same way as a mortgage is secured by
  housing. The duration of the loan period is
  considerably shorter often corresponding to the
  useful life of the car.

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• There are two types of auto loans, direct and
  indirect.
• A direct auto loan is where a bank gives the loan
  directly to a consumer.
• An indirect auto loan is where a car dealership
  acts as an intermediary between the bank or
  financial institution and the consumer

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Other Types of Loans

• Credit card debt
• Personal loans
• Bank overdrafts
• Corporate bonds

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Personal finance

• Personal finance is the application of the
  principles of finance to the monetary decisions
  of an individual or family unit. It addresses the
  ways in which individuals or families obtain,
  budget, save and spend monetary resources over
  time, taking into account various financial risks
  and future life events.

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• Components of personal finance might include
  checking and savings accounts, credit cards and
  consumer loans, investments in the stock market,
  retirement plans, social security benefits,
  insurance policies, and income tax management.

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• Personal Finance is a parameter driven product
  for catering to the needs of the general public
  belonging to different segments. One can avail
  unlimited opportunities through Bank's Personal
  Finance.

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• With unmatched finance features in terms of loan
  amount, payback period and most affordable
  monthly installments, Bank's Personal Finance
  makes sure that one gets the most out of his/her
  loan. Once a good credit history is established,
  the door to opportunity opens much wider.

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Mortgage Finance

• Offers the convenience of owning a house of
  choice, while living in it at its rental value.
  The installment plan has carefully designed to
  suit both the budget accommodation
  requirements.

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• It has been designed for enhancing financing
  facility initially for employees of corporate
  companies for purchase/ construction/ renovation
  of house.

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Business Finance

• In pursuance of the National objectives to revive
  the economy of the country, Bank is providing
  loans to small and medium size business
  enterprises under Bank's Business Finance Scheme.

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• Goal is to offer a loan, which enables business
  community to receive the financing required by
  them based on their cash flows. Valued customers
  can enjoy the convenience of getting financing on
  attractive terms with the minimum processing
  turnaround time.