Banking

Group Presentation

Bank Al Bank Al HabibHabib

Bank

A financial institution that accepts deposits, extends credit, and channels the money into lending activities. It generates profits from transaction fees on financial services and on the interest it charges for lending

Central Bank

The central bank is the head, the leader and the supervisor of the banking and monetary system of a country”.Central bank is the symbol of financial sovereignty and stability of the country

Role of Central Bankin Credit policy

• Bank rate• open market operations• Reserve requirement• Credit rationing

Introduction Bank Al Habib

Two Hundred and Fourty Nine branchesHead Office is in Multan

main Principal Office is located in Karachihistory:

DAWOOD HABIB GROUP, is the sponsor of Bank AL Habib Limitedas a Public Limited Company in October 1991

started banking operations in 1992.

Many Servicesof a Bank

Overview

•Financial services provided by a bank•Bank employees•Services that might be of personal benefit•The impact of state and federal regulations

upon the security of a bank

REMITTANCE OPTIONS TO SEND AND RECEIVE MONEY

1. Money Transfer Organizations2. Bank Transfers3. Hand Delivery4. Mail5. Post Offices6. Stored Value Cards

BANK OCCUPATIONS

• Tellers

• Platform Bankers

• Mortgage Lenders

• Operations Manager

• Branch Manager

ELECTRONIC BANK SERVICESOnline banking is the fastest growing

Internetactivity in the U.S.

Types of Services

•Bank Cards

•Automated Services

Protect Your Passwords!

BANK CARD TYPES

TYPE• Check Cards or

ATM/Debit Cards

•

Stored Value Cards

DESCRIPTION• Bank cards that allow for the

payment of goods and services to be subtracted directly from a bank deposit account.

• Can be used with merchants that take major credit cards—known as point of sale (POS) transactions.

• Bank cards with preset, limited value.

• Used to pay for goods and services.

• Alternative to cash.

ELECTRONIC BANK SERVICES

• Direct Deposit

• Transfers between Accounts

• Transfers to a Third Party

• Online Banking

• Bank by Phone

• ATM

REGULATION OF ELECTRONICBANKING SERVICES

Electronic Fund Transfer ActProtects consumers using any type of electronic banking from loss and protects their privacy.

Banks must:• Offer consumers a record or receipt for all computer

transactions.• Investigate errors and report to consumer within ten

days of error notification.

Customers are responsible to report any errors.

SHOPPINGAROUND

(THINGS TO ASK ABOUT WHEN

OPENING A CHECKING ACCOUNT)

SERVICESLocation of bankLocation of ATMsBanking hoursMinimum balance requiredMinimum transactions or limitsInterest-bearing accounts?Other

COSTSNon-primary bank ATM transactionsIn-branch transaction feesPer-check feesOther checking feesOverdraft protectionPrinting of checks

OVERDRAFTS AND BOUNCED CHECKS

Overdrafts and bounced checks occur when you complete a financial transaction (e.g., write a check) for more than what is available in the account. Your financial institution may pay the amount and charge you a fee, known as an “overdraft fee” or a “nonsufficient funds fee.”

Tip: Avoid overdraft or non-sufficient funds fees by making a habit of monitoring the balance in your checking account.

Savings AccountOverview

• Purpose of a savings account• Shopping for a savings account• Applying for a savings account• Monthly bank statement checkup

REASONS TO SAVE

• Emergencies

• Future Purchases

• Future Investments

SHOPPING FOR A SAVINGS ACCOUNTFactors to consider:• Safety• Risk• Liquidity• Minimum Account Balance Requirements• Fees and Service Charges• Interest Rate • Returns (Earnings)• Automatic Transfer• Direct Deposit

Types of advances

•Consumer financing•Small and medium enterprises(SME’s)•Commercial financing

Commercial banking

Consumer financing means any financing allowed to individuals for meeting their personal, family or household needs.

Consumer financing has expanded in Pakistan at an unprecedented rate over last seven years

Consumer financing is further segregated into the following core categories

1. Auto loan2. Home financing3. Personal financing

Auto Loans

•Easy to apply •Minimum Loan: Rs 250,000, Maximum Loan: Rs. 2,500,000 •Maximum loan period 5 years for new cars. •Affordable monthly installments. •Convenient repayment modes •No Pre-payment penalty. •Choice of reputable insurance companies at attractive terms. •Personalized customer service. .

Auto Loans Eligibility

You can get a car loan from Bank AL Habib to purchase the car of your choice if you are:

•Pakistani National Identity Card Holder. •Over 20 years of age (Maximum 60 years in case of salaried and 64 in case of a business person at the time of maturity of the loan). •Salaried person, Businessman or Self employed.•Minimum Net Salary 15,000/=•Down Payment: 10% of the invoice value of the Car

Personal loan

Personal Loans mean the loans to individuals for the payment of goods, services and expenses and include Running Finance / Revolving Credit to individuals.Bank AL Habib Limited as one of the pioneer bank believes in individual values and servicing the customer is our main objective, whether the requirement is for buying durable goods for personal use or for any other financial need.

Eligibility Criteria

- Pakistani National - Salaried or Self Employed- Minimum 23 and Maximum 57 Years Old- Minimum Net Salary 10,000/=

Salient Features

     Finance Amount     - Minimum Rs. 50,000/= to a maximumof Rs. 500,000/=

     Finance Tenure     - Three-Five Years

Home loans

Three categories

Home BuyingHome ConstructionHome Improvement

Eligibility Criteria

-Pakistani National- Salaried or Self Employed- Minimum 23 to Maximum 60 Years Old- Minimum Net Salary Rupees 20,000/=

Salient Features

Finance Amount

- Maximum amount Rs. 10,000,000/=

Finance Tenure

- Flexibility of up to 20 Years financing

The two major segregations of bank al Habib commercial financing are:• Funded financing• Non funded financingFunded financingIt is the type of financing in which bank provides the cash directly to the borrower.The cash can be used for any purpose by the borrowerDemand finance• Cash finance• Running finance• Pre-ship finance• Post-ship finance

Commercial Financing

Demand financeDemand finance is issued for a specific project. This meets the requirement of big customers to setup factories. Markup is charged on semiannual basis. The security in this type of loan is fixed asset. Bank al Habib like other bank is dealing in it but it is not dealing in some sectors which are face an economic crunch like cotton industry.

Cash financeThis type of finance is specified for seasonal requirements of business people for example the cotton crop, rice crop and sugar etc. markup is charged on quarterly basis. Bank al Habib is offering it by pledging the items.

Running finance

It is finance to fulfill the daily requirements. It is a business loan in running finance the account holder is given the facility to withdraw the amount on credit. The markup is charged on the days

Pre-shipment & post Finance

It is short term finance taken for inventory and production costs associated with manufacturing goods being exported. The supplier may require payment of the goods before shipment. Pre-shipment

Sectors which are really targeted by BAHL

BAHL adopt very conservative policy in advancing loans. That is way it target only those businesses which are highly profitable. Some of such sectors are;

• 1. Merchandising Business• 2. Departmental Stores• 3. Small manufacturing units like

dairy businesses.

Thank you !!!