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Prime Commercial Bank Ltd
BANKING SECTOR IN PAKISTAN
Banking and Financial services sector in Pakistan comprises the
commercial banks and the non-banking financial institutions, including
the development finance institutions (DFIs), leasing companies,
modarabas (Islamic Mutual Funds) and investment banks. These are
controlled and regulated by the State Bank of Pakistan (SBP). Pakistan
is in the process of adopting an Islamic (Shariah) financial system,
under which interest-based banking is not allowed. However, this has
not been made into a law as yet, and exists only on paper, and most
banks provide an anticipated profit rate in advance. Since 1990 the
Government of Pakistan (GOP) has introduced various reforms in the
financial services sector enhancing the level of autonomy enjoyed by
the SBP. The number of banks operating in Pakistan has increased,
which in turn has resulted in increased competition. The banking
sector, in general, has shown good progress during the last few years.
During previous five years, the combined total assets of domestic
banks, showed an average annual increase of 22 percent, while
combined deposits have recorded an increase of 27 percent per annum.
A total of forty six commercial banks, including twenty one foreign
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Prime Commercial Bank Ltd
banks, are operating in Pakistan. Additionally, sixteen Investment
Banks, twenty nine Leasing Companies and fifty three Modaraba
Companies provide a mix of financial services. Three major
nationalized commercial banks (NCBs) are still the dominant players in
the market, controlling about fifty-one percent of the entire banking
sector deposits and fifty percent of advances. NCBs and some DFIs in
the public sector are experiencing difficulties because of over-staffing,
inefficiency and large non-performing loans. GOP is taking steps to
recover these loans, by offering incentives to defaulters. Bureaucratic
inertia and political clout, of some of the defaulters, is a major
impediment in this effort. Opportunities for new Pakistani banks exist
in consumer banking, corporate bonds, investment banking, leasing and
housing finance sectors. Good reputation enjoyed by the existing
Pakistani banks will be helpful for new entrants. Some challenges,
however, do exist in the form of weak economic conditions in Pakistan
and the turnaround possibilities in NCBs through privatization. See
appendix for the list of those banks who are currently working in
Pakistan. This include all the national banks as well as all the foreign
banks.
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Prime Commercial Bank Ltd
1. What is banking and what are the kinds of banks?
DEFINITION OF BANKING
Banking is not merely trade of money but is also an important
manufacturing and circulating sources for money.
BANKING IN PAKISTAN
Present banking structure of Pakistan comprises of following types of
banks:
STATE BANK OF PAKISTAN
As the central bank of the country with its offices in Karachi, Lahore
Peshawar, Quetta, Faisalabad, Rawalpindi, Islamabad, Multan, Sialkot,
Sukhar and Hyderabad.
COMMERCIAL BANKS
Commercial banks have been the most effective mobilizers of saving,
and have been providing short-term requirements of working capital in
trade, commerce and industry. They are the profit earning concerns.
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Prime Commercial Bank Ltd
They receive deposits and advanced loans to the borrowers. They
greatly help in the financing of internal and external trade of country.
EXCHANGE BANKS
Main function of exchange bank includes financing of foreign trade by
purchase and sale of currencies in the form of drafts, bills of exchange,
telegraphic transfers etc. they also performs other functions of
commercial banks. In Pakistan the foreign banks (except Indian banks)
are commonly known as “Exchange Banks” due to the fact that prior to
the independence, foreign banks in Indo-Pak were engaged primarily in
financing of foreign trade. At present 18 foreign banks with 64
branches in main port and commercial towns are operating in Pakistan.
COOPERATIVE BANKS
These are the integral part of cooperative movement which aims at the
promotion of thrift, self help and mutual aid among the agriculturists
and others with other economic needs so as to bring about better living
better business and better methods of production etc.
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Prime Commercial Bank Ltd
SAVING BANKS
There is only one saving institution in Pakistan i.e. post office savings
which is wholly controlled by the government of Pakistan. It accepts
deposits from public and invests them in government projects.
Operations of it are very limited.
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Prime Commercial Bank Ltd
PRIME BANKHISTORY AND BACKGROUND
Prime Bank is the vision of a group of Pakistani Professionals with
extensive domestic and international banking and finance experience.
They Teamed up in 1992 with a select group of successful and like-
minded business houses in Pakistan and overseas. Some of the foreign
investor belongs to a highly regarded, very sizeable and well-
diversified business group of Saudi Arabia.
During the Initial Years, Prime Bank’s strategy was focused on
continuing improvement of internal procedures and operating
structures, to ensure a grater control over the quality of its operations.
Commercial banking activities were initiated at time of inception in
1992. During 1993, tow more business divisions i.e. Corporate
Banking and Financial Services were added. By 1996, Prime Bank’s
countrywide network of seventeen branches was in place and consumer
Banking activities were accordingly launches. Under the Bank’s on
going branch expansion program twenty-six new branches have been
added during the years 2001, 2002 and 2003 while seven more
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Prime Commercial Bank Ltd
branches will be opened during 2004. This would raise the total number
to fifty focusing primarily on the middle market commercial banking
segment, consumer banking initiative as well as agricultural, housing
and financing of small and medium sized enterprises.
Total Assets of Prime Bank during the period from June 1992 to
December 2003 have grown at an annual compound rate of about 26
percent to Rs.29 billion. Within this year period, Shareholders’ equity
grew from Rs. 300 million to Rs.29 Billion, Deposits to 21.6 billion
and Advances (net to Rs.13.6 billon. Profit before tax grew from Rs.1
million for the half year to June 1992 to Rs.430 million for the year
ended 31st December 2003.
After twelve years of well controlled, yet sure and successful
operations, the Bank is now poised to move forward rapidly to be at the
cutting edge of financial services combining highly efficient delivery
systems with combining highly efficient delivery systems with
continuous product innovation. Therefore, development of superior
Human Skills and the latest Information technology platform are
cornerstones of Prime Bank’s overall strategy to be in the exclusive
club of winning banks of the future.
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Prime Commercial Bank Ltd
2. Describe the Employees and Ownership Structure of Prime Bank?
OWNERSHIP STRUCTURE
CEO Mr. Saeed I. Chaudhry
Business Group Heads Corporate Finance & Institutional Banking Group
Mr. Khalid Imran
Corporate & Investment Banking (Syndications)
Treasury Mr. Rehan Ateeq
International / Correspondent Banking
Mr. Alamgir Khanji
Financial Institutions
Commercial Banking & Trade Services Group
Mr. Amanullah Khan
Commercial Banking (Regions/Zones)
Zonal Head CBP – Gulberg, Lahore Mr. Anjum Saeed
Zonal Head CBP – Egerton Road, Lahore
Mr. Ibraaz Saeed
Regional Head – Central Mr. Kazi Musrur Mahmud
Zonal Head CBP – Faisalabad Mr. Mehfooz ul Bari
Zonal Head CBP – Sialkot Mr. Imtiaz A. Mir
Regional Head – Karachi & South Mr. Ahmed Fawad Hashmi
Zonal Head CBP – AHR, Karachi Mr. Rohinton L. Meherjina
Zonal Head CBP – DHA, Karachi Mr. Kausar Ali
Regional Head – North Mr. Bilal Bin Zaheer
Trade Services(CPU’s) Mr. Tauqeer Masud
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Prime Commercial Bank Ltd
CPU (TS) – Lahore Mr. Sami Uddin Khan
CPU (TS) – Karachi Mr. Mohd. Ali Najmee
Islamic Banking Services Mr. Mazhar Ali Bokhari
Agricultural Finance Mr. Rana Mujahid Ali Khan
Consumer Banking Group Mr. Aneeq Khawar
Credit Head Mr. M. Atif Kausar
National Sales Head – Autos Mr. Syed Ali Salman
Marketing Head Ms. Khawalah Gultasab
Service Quality & Consumer HR Head
Ms. Ayesha Rauf
Finance & Admin Head Mr. S. Wajih Hussain Zaidi
National Sales Head – Mortgages & Revolving Facility
Mr. Muhammad Owais Khan
Banking Services Group Mr. Aneeq Khawar
Central Region 1 Mr. Kafeel A.Khan
Central Region 2 Mr. Aleem Ahmed Baig
Northern Region Mr. Bilal Bin Zaheer
Karachi Region Mr. Mansoor Jabbar
Southern Region Mr. Syed Aftab Ahmed
Support Groups
Finance & Planning Group Mr. Shahzad Sadiq
Strategic Planning “ “
Central Finance & Accounts Mr. M. Safi Syed
Treasury Settlement Mr. Saleem Ansari
Legal & Corporate Affairs Ms. Shaheen Ali
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Prime Commercial Bank Ltd
Compliance & Risk Management Group
Mr. M. Shafiq Naeem
Compliance Mr. Ejaz Ahmed Shamim
Risk Management (Enterprise Wide) Mr. G.M.Shaharyar Ahmed
Credit Risk Review Mr. Waseem I. Khokhar
Treasury Middle Office Mr. Junaid T. Bashir
Credit Group Mr. Khalid Munawar ud Din
Credit Division Mr. Khalid Ahsan
Credit Administration Department Mr. Muhammad Usman
Remedial Asset Management Mr. Akhtar Masih
Operations Support Group
Human Resource Mgt & Training Div Mr. Moghis Bokhari
Banking Operations (Regions) / ATMs
Mr. Irqam Siddiqui
Regional Head Lahore & Central Mr. Janeed E. Meer
Regional Head North Mr. Ali Javed Naqvi
Regional Head Karachi & South Mr. W.U.Sakrani
Systems / IT Mr. Sultan A. Khan
Central Administration Department Mr. Shafiq Hussain
Admin. Head Karachi/South Syed Aftab Ahmed
Audit Division, Mr. Sajjad Haider reporting to the Board of Directors
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Prime Commercial Bank Ltd
LOCATION OF THE BANK
Prime Commercial bank Limited having registered office at 77 Y,
D.H.A, Lahore (Pakistan), was incorporated in Pakistan on September
30, 1991 as a public Limited Company under the Companies
Ordinance, 1984 and is listed on all stock Exchanges in Pakistan.
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Prime Commercial Bank Ltd
3. Head of Administration Department
Mr. S. Wajih Hussain Zaidi
This department is responsible for the administration activities of the
bank therefore it is responsible for all the administrative costs of the
branch. It removes any branch grievance that is being observed or
communicated to it. These complaints can be related to the customer
service, external function or bank’s internal working.
Following are the key people:
Mr. Muhammad Usman
Credit Administration Department
Mr. Shafiq Hussain
Central Administration Department
Syed Aftab Ahmad
Admin Head Karachi South
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Prime Commercial Bank Ltd
4. What are the mission and vision of Prime Bank?
VISION
“ To be the Preferred Bank in the Region ”
MISSION
“To provide exceptional value to all our stakeholders by
competing fairly in our niche markets on the basis of
superior service, innovative products and highest level of
professionalism based on customer orientation, team
work, creativity and operational excellence while
maintaining high ethical standards as a socially
responsible corporate citizen ”
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Prime Commercial Bank Ltd
5. What are the goals and objectives of the Bank?
Prime Commercial Bank Limited -Islamic Banking Division will
provide Sharia’h compliant Islamic Banking Products to its customers.
The product range will cater to the requirements of customers who,
presently dealing with conventional banks, want to shift to Islamic
Banking as well as such customers who do not wish to deal with
conventional banks because of their religious beliefs.
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Prime Commercial Bank Ltd
6. Organizational Environment of Prime Commercial Bank?
The vision statement states that the Bank is socially responsible
institution, firmly believing in protection of environment, peaceful co –
existence, and respect for human rights.
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Prime Commercial Bank Ltd
ORGANIZATIONAL CHART
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SVP
AVP
Deputy Mgr Foreign Trade
Manager Cash Department
Mgr Account Department
Compliance Officer
Consumer Finance Officers
Manager Credit Department
Customer Relation Officer
Deputy Mgr Finance Service
Officer
Assistant Officer
Deputy CRO Deputy Officer Officer
Deputy Officer
Officer
Deputy Officer
AssistantOfficer
Officer
Deputy Officer
Prime Commercial Bank Ltd
7. What is the Core Values of the Bank?
CORE VALUES
o Passion to succeed
o Striving for customer delight
o Integrity in all our dealings
o Free and open communication
o Promoting team spirit
o Fostering best practices leading to good governance
o Creating an enabling environment for individual performance
and collective growth
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Prime Commercial Bank Ltd
8. Explain the competitive Advantages of the Bank?
Clearing is useful in the following ways:
It dispenses the need of physical transfer of currency from one
bank to another and thus safe a lot of time cost and risk.
Enables clients to secure cash quickly against cheques.
Avoid unnecessary blocking up of large sums of cash. The bank
can meet the clearing demands of other banks with a small cash
reserve.
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Prime Commercial Bank Ltd
PLANNING PROCESS
Two batches comprising 20 to 25 trainees each will be selected simultaneously.
Training will be conducted in a modular form both in Lahore and Karachi.
Successful candidates will be called for regular batch training.
Core training modules will be as follows:
S.# ModuleDuration
Class Room Training
On the Job Training
1. General banking Two weeks Six weeks
2. Credit Two weeks Six weeks
3. Trade Finance Two weeks Six weeks
4. Information Technology 3 Days
5. Marketing & Selling 2 Days
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Prime Commercial Bank Ltd
9. What are the Goal Setting Methods ?
At present, there are 43 branches operating covering 19 cities and the
bank plans to open 9 more branches during 2007 to increase its branch
network to 50 across the country. Further, the Bank has a
Correspondent network across 106 countries worldwide.
Category Classification
Branches are categorized as;
Category A branch
Category B branch
Category C branch
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Prime Commercial Bank Ltd
10. What are the tools of Planning?
Planning, the first of the four functions that make up the
management process, is defined the process of determining where
the organization should be in the future and then selecting and
implementing the most effective set of actions to achieve that future
state. Because the other three management functions (organizing,
leading, and controlling) all involve efforts to achieve the goal set
in the planning process, planning is the most fundamental part of
the management process. Managers plan because they understand
that the future results represented by their organizational goals can
be achieved only by making decisions about current actions. Very
simply, if no action is taken today, the organization cannot achieve
its desired results tomorrow.
A goal is the target of future state an organization wishes to
achieve. Goals are important for four reasons. First, they defined
the organization and justify its existence by specifying the ends if
hopes to achieve. Second, they are clear targets that motivate and
guide managers and employees in their daily activities. Third, goals
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Prime Commercial Bank Ltd
direct organizational decision making, focussing attention on the
desired future state and ways to reach that future state. And fourth,
the desired outcome specified by organizational goals serves as a
standard against which performance can be measured.
To achieve the ends represented by organizational goals, managers
prepare a plans to identify the means by which goals are pursued. A
plan help management bridge the gap from the current state to the
future state. Managers must choose among many alternatives in
their daily activities, so a plan is a way of anticipating the actions
necessary to reach goals, allowing managers to make decisions in
advance about the actions to be taken.
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Prime Commercial Bank Ltd
THE ORGANIZATIONAL PLANNING PROCESS
The planning process includes developing the organizational
mission, setting goals, and devising plans (See Exhibit 1.2).
Managers begin the planning process by creating, modifying, or
reaffirming the mission, which is the topmost goal in the
organization and which describes the organization’s purpose. Next,
managers use the mission to guide the development of
organizational goals. Then they outline and implement the plans
necessary to achieve those goals. This planning process is as
important for organizations that operate in a relatively simple and
stable organizational environment as it is for those threat operate in
a more complex and dynamic environment. By applying the
planning process, managers are better able to cope with
environmental changes, large or small, because the process forces
them to focus on relevant results rather than considering daily
activities in isolation.
Although the planning process is concerned with predetermining
courses of action that will achieve organizational goals, it is also
closely linked with the management function of control. Managers
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Prime Commercial Bank Ltd
use control methods and measures to trace progress toward
achieving the goals they have set, and they use this feedback on
performance to make any necessary changes. Further, they use
control to ensure that their plans are properly implemented and to
maintain consistency of activities and decisions at every
organizational level.
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Mission Goals Plans Performance
Prime Commercial Bank Ltd
11. What are the Strategy formulation, implementation and
evaluation?
The policy formulation is an important task performed by the bank
management. The personnel staff has given special attention towards
this side of the management. It is not a very lengthy procedure and the
involvement of relevant people for the important affairs is given due
importance. The important steps in this process are given as follows:
APPROVAL OF MATTER:
The first and the foremost step in the policy formation process is
approval of the matter about which the policy is to be formed by the
board. In the formal hierarchical order the only authority for the
approval of all the matters in the policy making is the Board of
Directors of the Bank. The specified quorum of the Board of Directors
is authorized to approve or disapprove the matter and give due
decisions about it. The members of the Board analyze the matter in the
context of the profitability of the Bank and the given circumstances and
then decide whether a separate policy is required for it or not. After this
feasibility analysis a consensus is developed in the meeting and the
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Prime Commercial Bank Ltd
pros and cons of a new policy are considered. This step helps in the
future operation of the bank. If a matter is considered frivolous then the
Board never gives approval for a separate policy of that matter.
FORMATION OF POLICY
The matters for which the board gives approval are presented before the
Management Committee of the bank for the formal details and the
formulation of the policy. The committee considers the important
aspects of the matters and then according to the needs of the
organization the requisite policy is formed. In this process of policy
formation only the members of the committee are involved .Any other
people from the branches of the bank are not concerned with this
procedure. This system is to avoid the involvement of politics in all the
strata of the bank. So that the strong branches don’t tend to get the
policies inclined towards their own banks. The policies are formed
taking into consideration the plight of all the branches and the parties
that are likely to be affected by the formation of a particular policy of
the bank. The people in the committee are apt to form this type of
policies and know how to make these policies.
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Prime Commercial Bank Ltd
CIRCULARS TO THE BRANCHES
After the policy is formed the policy is formed it is communicated to
all the branches in the country through the circulars. These circulars are
issued on behalf of the management of the bank. These circulars
contain the comprehensive details of the policies and the ways to adopt
the procedures to follow the policies of the bank.
In this way the management system of the bank is managed uniformly
without any discrimination between the branches .The matters that are
referred by the branches for the formation of the policies are also taken
into consideration and policies are formed about them also. But the
procedure is the same for those matters also. By and large although the
policy formation process of the bank is not completely flawless but it is
very effective and successful for the bank and the stakeholders of the
bank.
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Prime Commercial Bank Ltd
MAJOR MANAGERIAL POLICIES
The management of the bank has chalked out a well defined policy for
all the affairs of the bank and the welfare of the employees in the bank.
These policies are very important for the smooth running of an
organization. These are the rules and regulations of the bank to which
all the employees have to stick and perform their respective duties.
Some of these policies are given as follows:
Accounting policies
Marketing policies
Recruitment policies
Training policies
Dressing policies
Environmental policies
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Prime Commercial Bank Ltd
12. What is the Organizing and Staffing Process?
HUMAN RESOURCE MANAGEMENT (HRM)
The employees of Prime Bank strongly believe that, Human resource is
most valuable asset for every bank. Prime Bank is improving staff
professional quality and proficiency, they conducted on job training
programs and house seminars and courses at their training centers
Prime Bank training academy is equipped with the latest audio video
visual training aids, which facilitate in the dissemination of knowledge
and skills. Prime Bank inducted 60 management trainees who are being
taken through a 6-month comprehensive banking training program. The
bank indents to continue on a need basis such program each year.
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Prime Commercial Bank Ltd
The exciting new candidates can apply in the following fields
Recently, Prime Bank has offered new fields to fresh postgraduate
candidates for its branches in all major cities
SME Finance
Lease Finance
Agricultural Finance
1. Application Form
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Bachelor Level
Cash Officer Personal Relation
Master Level
MTO (Management
Training Officer)
SME
Finance
Lease Finance Agricultural
Finance
Prime Commercial Bank Ltd
Firstly, candidates fill the online application form or going to nearest
branch then list of successful candidates for any positions who have
been short listed for the written test which will be conducted at our
Karachi and Lahore test centers.
2. Test
The test follows a GMAT format and is designed to evaluate
Arithmetic & Logic skills, English Language, General Knowledge
(including current affairs) & basic PC user skills.
3. List of Selected candidates
Then list of successful candidates who will qualify in the written
test will be displayed.
4. Interview
The most important step is the interview, which is the final criterion
of selection. (Depending upon the job second or third interview is
conducted)
5. Recommendation
Head office (Karachi) has the rights to give final approval for hiring on
the basis of the written test and interview.
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Prime Commercial Bank Ltd
NOTE: Prime Bank also hires the candidates on the basis of reference
as well as doing head hunting
PROBATION PERIOD
The selected applicant has to go through a probation period of 3 to
6 months. After the specified period the evaluation report is
generated about the working and behavior of the employee and
headquarters is informed about it.
DISABLED PEOPLE
Prime Bank also has one post of disabled persons in all the
departments.
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Prime Commercial Bank Ltd
TRAINING PROCESS
Prime Bank’s management believes in developing the potential of the
Bank’s employees to the fullest extent. Training & Development
Centre of the Bank is housed in custom-built, state of the art facility on
the 4th floor of the Head Office building at Karachi. The centre is
responsible for providing multi-level high quality training programs to
all staff members in the following areas;
Consumer banking operations
Credit marketing & credit proposals
Credit administration/documentation
Trade finance operations
Marketing & selling skills
Customer service skills
Performance appraisal skills
Time management & personal effectiveness
It is obligatory for each staff member of the bank to attend at least one
training program.
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Prime Commercial Bank Ltd
Wherever the Training Department is unable to provide focused
training for certain groups of staff, reputable external training providers
are invited to fill the gap.
OFF-JOB TRAINING
They conduct training for the new comers from 2 to 3 months at their own
academy in Karachi that is their head office.
Contract Master Level
At least 3 years
100,000 bonds signed
Contract Bachelor Level
At least 2 years
50,000 bonds signed
Salaries
Starting from 10,000 for cashier
Starting from 12,000 for customer officers
Starting from 20,000 for Management Trainee Officers (MTO)
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Prime Commercial Bank Ltd
ON_JOB TRAINING
They conduct Head Office seminars, presentation, magazines and
training program. Those people who are serving they are capable
persons and highly qualified from the foreign countries.
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Prime Commercial Bank Ltd
13. What is the Leading Process?
Directing, influencing and motivating employees to perform essential
task.
The process of leading in Prime Commercial Bank is done by adopting
various techniques of motivation, effective leadership and effective
communication.
EFFECTIVE LEADERSHIP
Leadership is the process of influencing other towards
accomplishing goals. Effective leadership is essential for a
company’s success. GCB lays special emphasis on managers to be
effective leaders, because it wants the employees to be properly
motivated, assessed and guided by the managers. All managers at
the hierarchical level are equal with respect to formal authority and
managerial power as organization is centralized. It is required, for
effective leadership, that managers are fully aware of employee
needs, and performance and are thus able to guide them better.
The philosophy of Kaizen is followed by Prime Commercial Bank
i.e. “Continuous improvement for betterment” due to effective
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Prime Commercial Bank Ltd
leadership, team work and the philosophy of Kaizen, GCB has
acquired a strong position in private banking sector.
The top management has been playing active role in this regard.
Training courses are conducted which focus on managers to become
effective leaders by developing team work, staff motivation
planning and leadership. Moreover, RGM, Regional General
Managers, are also continuously trained to effective assess and
guide the staff.
MOTIVATION
This is one side of leadership. The leaders who motivate the
subordinates are considered efficient managers. Motivation is
physiological process. It is inspiring a person in the organization to
identify his/her desire and willingness to use his/her potential for
achievement of organization goals.
Motivation plays a role in most organization in atleast three ways.
1. People must be attracted motivated to join an organization and
remain in it.
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Prime Commercial Bank Ltd
2. Once on the job, employees must be induced – or motivated – to
exert energy and effort at an acceptable rate.
3. An organization’s human resources must be maintained and
developed. Company sponsored training programs and
conferences are often used for this purpose.
Motivation is an essential element in the success of all such activities.
The management of Prime Commercial Bank wants a high level of
performance from its employee for this purpose, the top management
supports to motivate the employees of all the departments to create a
stronger team.
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Prime Commercial Bank Ltd
14. Describe the Controlling Process of the Bank?
CONTROLLING
The managerial function of controlling is the measurement and
correction of performance in order to make sure that bank’s
objective and the plans devised to attain them are being
accomplished. Controlling is the function of every manager from
top to middle level.
BASIC CONTROL PROCESS
Basic control process involves three steps:
1. Establishment of Standard
(As plans are the yardsticks against which managers devise
control, the first step in the control process logically would be to
establish plans.) Since plans vary in detail and complexity so the
top management make standards and communicate it to every
branch manager.
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Prime Commercial Bank Ltd
2. Measurement Of Performance
Although the measurement is not always practicable – but (in the
bank every branch manager is continuously checking the
performance of employees so that it is sure that employees will be
on the right path of achieving organizational goals).
3. Correction Of Deviations
(Standards should reflect the various positions in an organization
structure.) If performance is measured accordingly, it is easier to
correct deviations. In the bank “any performance not upto the
mark is questioned directly” by the manager of that branch and
collectively solution is sought.
ESTABLISHMENT OF CONTROL
Each of 252 branches is the Bank itself each branch sets its own
target and standards and establishes its own control system. Each
branch is not held responsible for achieving its preset targets of
profits to the head office. The chairman daily reviews bank
statements pertaining to each branch and any deviation or lack of
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Prime Commercial Bank Ltd
performance efficiency is directly questioned and branch manager is
held accountable.
Branch Managers are granted limited powers to extend credit. Any
case for credit beyond a certain limit is forwarded to the head
office. Another very god control system of the Bank is the Audit
Department. There are 15-20 auditors all the time in the field to
keep check on various branches.
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Prime Commercial Bank Ltd
15. Describe the SWOT Analysis?
STRENGTHS
BIN MAHFOOZ GROUP
The bank is owned by BIN MAHFOOZ group of Saudi Arabia,
therefore people have trust and confidence in banks operating
profitability.
CUSTOMER ORIENTED
The bank provides high status services in every field, whether
consumer banking, commercial banking or private banking
ONLINE TRANSFERS
It-is-a-recently-achieved strength. Almost branched are on
line and more branches are to be made online very soon.
LOCATION
All the Prime bank branch locations are in commercial areas.
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Prime Commercial Bank Ltd
STRICT ADVANCING POLICY
One more Strength of Prime Bank is that very less amounts of
debts turn doubtful or bad due to their conservative policy.
BRANCH NETWORK
Large number of branches has been opened and stills more
branches more branches are under expansion plan
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Prime Commercial Bank Ltd
WEAKNESSES
BRANCH LAYOUT
Some of the branches do no have an impressive lay out,
NO ADVERTISEMENT
Prime Bank does not make any advertisement or promotion
of its products,
INTERNATIONAL BRANCH NETWORK
No branches of Prime Bank are in any other countries. So the
bank has to incur additional cost for correspondent banking,
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Prime Commercial Bank Ltd
THREATS
E-BANKING
Many banks are providing e-banking to their customers which is
a threat for the bank
PRODUCTS AND SERVICES
A wider range of products and services is being provide by the
competitors e.g. ATM, Traveler's cheques, master cards etc.
INSTABILITY
The recession experienced by the economy has overall affected
the banking industry
LARGE NUMBER OF NEW COMMERCIAL
BANKS
Recently with the overall improvement in the economy and
banking sector reforms, the banks have expanded their networks
considerably and this is a consistent threat to strive for survive.
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Prime Commercial Bank Ltd
OPPORTUNITIES
BRANCH NETWORK
Due to lament licensing police by SBP Prime Bank has more
opportunities to open new branches.
MARKETING
More market share and customers can be gained by effective
marketing strategies.
NEW PRODUCTS AND SCHEMES
New customer friendly products can be introduced
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Prime Commercial Bank Ltd
RECOMMENDATIONS AND SUGGESTIONS
IMPROVED CUSTOMER SERVICE
A regular contact with, the customers should be maintained in person.
NEW PRODUCTS AND SERVICES
Today is the time of tough competition and the banks try to grab each
other's customers by introducing new and innovative products. Prime
bank should also get into providing excellent ATM service and E-
Baking services to its customers.
CAR/HOME FINANCING SCHEME
A car-financing scheme can prove to be very profitable these days.
Almost all the competitors of Prime bank offer such schemes. These
schemes must be made more attractive to gather more market share.
ADVERTISING
Marketing and publicity being the strategic tools are among the most
important techniques to increase the business and attract more and
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Prime Commercial Bank Ltd
more customers. Prime Bank should advertise its products and services
and participate in Public awareness activities.
TARGET MARKET
The landing policy of the bank is very conservative and it targets only
selective class of people. The target market should be expanded to cater
the lower middle class also.
ACCOUNT HOLDERS
The policy of the bank is too accepting only those applications that are
backed by proper “ Introducer”. This is a safety measure but the policy
needs to be reconsidered to increase deposits.
MARKETING DEPARTMENT
A proper marketing department should be established in order to attract
more customers by making appropriate strategies.
IMPORTANCE TO EMPLOYEES
Due importance should be given to all the employees to encourage
them.
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