Faisal Bank

FAYSAL Bank Introduction:

Group Information The DMI group headed by H.R.H. Prince Mohamed Al Faisal Al Saud, is registered in the Bahamas with main offices in Geneva, Switzerland. The DMI group has been the leading contributor to the development of Islamic banking in the world, particularly with regard to promoting new modes of investment compatible with Islamic Shariah. The group’s business comprises of three main sectors - Islamic Banking, Islamic Investment and Islamic Insurance. The DMI group has an extensive network of financial institutions stretching over four continents, with well-integrated regional subsidiaries, enabling it to respond to local business needs and conditions. Based on this geographical structure, the DMI group companies act as a financial bridge between the world’s leading financial centers and the Islamic countries.

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Board of Directors: H.R.H Prince Mohamed Al Faisal Al Saud

Chairman

Farook Bengali

President & CEO

Khalid Abdulla Janahi

Director

Dr. Said Sa'ad Al-Martan

Director

Ziad H. Rawashdeh

Director

Sanaullah Qureshi

Director

Shahid Ahmad

Director

Tariq Iqbal Khan

Director (NIT Nominee)

Executive Committee Khalid Abdulla Janahi

Chairman

Farook Bengali

Member

Ziad H. Rawashdeh

Membe

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Capital and Ownership: The majority share holding of Faysal Bank Limited is owned by companies of the Dar Al Maal Al Islami Trust (DMI) including Shamil Bank of Bahrain E.C. The remaining shareholders comprise of the general public, NIT and other Pakistani institutions. The Bank’s shares are quoted on the Karachi and Lahore Stock Exchanges.

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Mission Statement: Faysal Bank shares its mission statement with the DMI Trust. Our mission being “The introduction of a just and equitable financial system by being a world class multipurpose financial institution, providing a range of specialized services, working on Shariah principles”.

Vision Statement:

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History: Faysal Bank started operations in Pakistan in 1987, first as a branch set-up of Faysal Islamic Bank of Bahrain and since 1995 as a locally incorporated Pakistani bank under the present name of Faysal Bank Limited. On January 1, 2002, Al Faysal Investment Bank Limited, another group entity in Pakistan, merged into Faysal Bank Limited which resulted in a larger, stronger and much more versatile institution. In fact it has the highest share capital amongst private banks in Pakistan and is amongst the largest in terms of equity. Faysal Bank Limited is a full service banking institution offering consumer, corporate and investment banking facilities to its customers. The Bank’s widespread and growing network of branches in the four provinces of the country and Azad Kashmir, together with its corporate offices in major cities, provides efficient services in an effective manner.

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Future Plans:

THE QUICK LINK TO YOUR BANKING SERVICES Faysal Bank is constantly endeavoring to bring to its customers new and improved products and services that provide efficient and effective solutions. Faysal Connect is such a service for the corporate customers. Faysal Bank’s web-based e-banking allows its customers to access its banking services via the internet by using state-of-the-art secure technology. Faysal Connect empowers corporate customers to conduct their daily business tasks from anywhere and at anytime.

EXPERIENCE … •

Time Saving

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Convenience

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Control over your Finances

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Security

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Main Products and Services: Products and Services o

Products 



o

Deposit Products (Accounts) 

The Faysal Sahulat Account

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The Faysal Savings Account

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Rozana Munafa Account

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Rozana Munafa Plus Account

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Faysal Premium and Premium Extra Accounts

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Faysal Izafa

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Mahfooz Sarmaya

Consumer Finance Products 

Faysal Car Finance

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Faysal Housing Finance

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Faysal Finance

Services 

Cash Management

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ATM and Debit Cards

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Travelers Cheques

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Inter-Branch Transfer of Funds

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Safe Deposit Lockers

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Non-Stop Banking

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Different Departments of Company: Different departments of Faysal Bank are as under;

1. Operation Department: Operation Department is subdivided into following 4 departments: a. Remittance b. Cash c. Account Opening d. Customer Service

2. Agri-finance Department This department provides agriculture loans to the formers at nominal rates with easy terms. It includes short term financing for fertilizers, seeds, pesticides etc and long term financing for purchase of harvesting machines and installation of tube-wells etc.

3. Credit Administration Department: This department supervises the loans either given or received in the form of deposits. It administers the conditions imposed at the time of delivering of loan like security etc. 4.

Marketing Department:

It peruse the customers to make business with the bank either in the form of deposits or by applying for financing. Different toots and techniques of marketing are used such as making contact personally with the customers, advertisement through television, news papers and on the website. 5.

Consumer and Finance Department:

This department provides loans to the ultimate consumer in the form of car leasing, house financing and as well as personal loans. Besides this it also administers the loans already given.

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6. Documentary Credit and Foreign Trade Department: This department provides assistance to customers regarding foreign trade, such as it deals with the international companies and provides gods and services required by customers. The kind of assistance it provides includes letter of credit facility, guarantor and also helps in foreign remittances.

Human Resource Department Main HR Department is located at Faysal Bank Head Office Karachi. There are HR Co-coordinators in each branch of Faysal Bank which supervises the applications and practices of HR department. If in any branch of Faysal Bank, a particular vacancy is to be filled, the applicant will make contact to the Branch Manager of that particular branch which will refer the candidate to the Head Office. All the recruitment and selection process will be will be conducted at Head Office. Then the Head Office selects the candidate on the basis of information provided by the candidate. The selection process includes the testing and interview process. After selection, the employees are then transferred to their particular branches, where the duties are assigned to them as well as training is provided them on the basis of their nature of job. HR department sets the rewards (salaries, bonuses etc) according to the performance and the target achievement of the employees, If one is working satisfactorily and efficiently then he is awarded with such incentives that will motivate others to do well. If the performance shows downfall, he is warned. The Manager of each branch is responsible for the appraisal of the employees. Then on the basis of appraisal, promotion and salary increments are awarded.

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Job Analysis “The procedure for determining the duties and skill requirements of a job and kind of person who should be hired for it.” Job analysis has two components i.e. •

Job Description

•

Job specification

Job Description: “Job description is the process through which we determine the duties, responsibilities, supervisory responsibilities and behaviours required to perform the job”

Job Specification: “Job specification is the process of determining the job related skills, abilities required for a job”

Job Analysis of Faysal Bank Basically there is no specific Job Description and Job Specification for a particular job in Faysal Bank. Change in banking system and size of operations is affecting the duties, responsibilities of job. Faysal Bank for writing job description and job specification intensely focus on the immediate supervisor. If there is any job vacant at low level in the Faysal Bank, the immediate supervisor of concerned department with the assistance of Branch Manager will transfer the relevant job description and specification to the HRM Department of Faysal Bank situated at Karachi. The head office will use this written job description and specification to select the right employee for Faysal Bank. But one thing is important that job related duties and responsibilities at low level can change with the will of immediate supervisor. Practically when we talk about the Faysal Bank low level staff, about more than 40 employees are working under the authority of operational manager. Operational manager can change the duties and responsibilities of employees working under his authority.

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At the middle level management, the operational manager and all the concerned department head come under this part. The Branch manager of the concerned branch will write job description and job specification of the vacant job and transfer it to the head office of Faysal bank. At the top level, the Branch manager of the concerned branch come. In practical side, their job analysis is done directly by the head office. And the head office use the mostly internal source of recruitment here to fill the vacant top level job or succession planning.

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An Example Regarding Job Analysis (Description & Specification): Principal Accountabilities: 1. Timely handling of all front office activities associated with the opening of customer accounts at the branch to enhance customer satisfaction and process efficiently.

2. Maximize sales of banks’ product/ services to meet targets assigned with regards to Deposits/ Risk/ Assets/ Customer Finance.

3. Receipt of ATM forms and timely issuance of ATM card. 4. Manage and handle processing and operations of all FCU related activities of the branch including printing of all associated reports.

Compliance 1. Positive internal audit rating with low incidents of audit objects. 2. Complete adherence to FBL’s SOPs as per laid policies and procedures. 3. Full compliance with SBP and other regulatory requirements. Documentation 1. Preparation of daily position of balance sheet/profit and loss with details of other assets and liabilities for review of Branch Manager.

2. Reporting of demand and time liability figures and weekly position to Treasury

3. Preparation of JVs and payment vouchers for settlement of vendors’ bills 4. Record responding entries debited by Main Branch pertaining to FCU. 5. Preparation of monthly results duly signed by the Branch Manager for head office FCU.

6. report to H.O. FCU for SBP of monthly expenses, cost of funds, liabilities and assets

7. Preparing details of assets charged off during the month. 12

8. Preparation of details of addition, disposals and transfer of fixed assets along with summary.

9. Aging of accounts appearing in other assets and liabilities pertaining to FCU 10.Preparation of data files and e-mailing of same for Enterprise Reporting 11. Preparation of details of leases written during the month. 12. Cost of funds report for the month with year to date figures. 13. Variance report on actual vs. budget figures. 14. Preparation of quarterly/yearly income tax reports for Head Office and Income tax Department. 15. Maintenance of staff personal files 16. Preparation of weekly deposit comparative positions. 17. Submission of withholding tax deduction, its reporting and related returns only for staff/suppliers. 18. Branch related financial reporting on daily/weekly/quarterly/biannually.

Problem Solving and Services 1. Provide heighest level of personalized service to customers through proper handling, timely assistance, promptly attending to their queries and complaints, catering to their personal banking needs and building a strong and cordial relationship to avoid dissatisfaction. 2. Deciding and providing the right type of product/service to meet the need of individual customer. 3. Maintaining and improving the service standards of the Bank to avoid incidence of complaints related to service issue from bank’s customers. 4. Close coordination with all other functions of the branch to facilitate smooth customer transaction processing.

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Other Responsibilities: 1. Backup of other Customer Services Officers(CSO) 2. To generate business through local sales promotion, in-branch walk in customers and marketing calls on existing as well as potential individual customer to increase sales thereby increasing the branch business. 3. Coordinate the sales effort of sales team where needed and to forge strong rapport with the customers to ensure strengthening of relationship on an ongoing basis, 4. Maintain a high standard of appearance of the customer service center and self. 5. Any other responsibility assigned by Operations manager/ Branch Manager.

Job Requirement: •

Minimum Qualification

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Experience

Supervisory Responsibilities: •

Number of person reporting

•

Direct Report

•

Report to

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Recruitment and Selection Process Recruitment refers to the process of attracting job applicants from the available labor force. Selection is the process of choosing from a group of applicants those individuals best suited for a particular position.

Sources used by Faysal Bank: 1. Internal Sources 2. External Sources

Internal Source: 1. Job Posting: Faysal Bank publicizes open job to its existing employees by listing its attributes e.g. qualification, experience and pay rates. Bulletin Boards and Notice Boards inside the organization are used for this publication.

2. Contacts and References: Faysal Bank encourages the contacts and references of its existing employees. It means if there is any job vacant in the bank, the candidates referred by the employees are preferred.

External Source: 1. Advertisement: Advertisement is a major external source adopted by Faysal Bank. Organization extensively focuses on advertisement about vacant jobs and thus attracts the potential candidates. The only source of advertisement adopted by Faysal Bank is news papers.

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2. Direct Approach: Faysal Bank approaches directly to experienced employees of other banks and offers them higher rewards to pursue them to leave their existing jobs and join Faysal bank. Disadvantage of this method is that they have to pay higher salary for the post offered.

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Methods of Recruitment & Selection Testing: Test is conducted by the regional offices of Faysal Bank to choose the potential candidates. Test is divided mainly into two portions

a. General IQ level test

(30% weightage)

b. Job Related Test

(70% weightage)

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Duration of test is 2-3 hours

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Minimum 50% marks are required to appear in the interview.

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There is no negative marking in the test.

Qualifies candidates are then called for an interview.

Interview: In an interview information is obtained from the candidates through oral responses. •

Regional office conducts the interview

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Panel Interview is conducted

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Panel consists of 3-7 members

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Expected salary and information about information about past job is gathered

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Nature of job and responsibilities are discussed with the candidate

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Preferences of candidate are asked in the interview.

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Process of Training After the selection of employees, the process of training starts. We will discuss the training of prospective and current employees.

Job Rotation: To rotate the employees from one job to another within same department as to enhance his experience for increased job duties. In Faysal Bank there is no specific criteria for job rotation. It depends upon the will of Branch Manager whether to rotate the employee or not. ( Inter Departmental Transfer)

Coaching: Initially the employees are selected as MTO’s ( Management training Officers). They are provided with necessary training relevant to their job in specific branches as directed by regional office. On job training is also provided to the employees. Permanent employees are trained with respect to certain changes in banking system and its policies such as installation of new software, change in pattern of transaction, change in Govt. policies etc.

Apprenticeship: “Fresh graduates and master degree holders of reputed institutes are invited to get training regarding operations of a particular organization against a little reward.” Faysal Bank also has a attractive offer for fresh graduates and master degree holders to get apprenticeship. This offer contains attraction as a reward f Rs. 750 per weak and if performance is unto the mark then an offer for permanent employee s made.

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Compensation Management Salary: There are two way of salary setting in Faysal Bank:  If Bank approaches to any experienced employee thin pay will be set on the will of employee.  If the candidate approaches to Bank then B.M negotiate for salary. Bank will pay Rs. 10490 to fresh candidates it includes 66.67% of basic salary.  Add 40% of basic salary is house rent.  Add 10% of basic salary is utility allowance. Salary is not providing according to rank but salary is according to performance and target achievement. Let’s have a view on salary of different employees.  Branch Manager

Rs. 78600.

 Operational Manager

Rs. 42500.

 Customer service in charge

Rs. 20900.

 Cash in charge

Rs. 35000.

 Branch Accountant

Rs. 16000.

Probation Period: It is specific time period for new employees does not become a permanent employee and in this period organization can fire at any time on the basis of pour performance. Faysal Bank initially selects the new employees on the probation period of six months. 19

Promotion Criteria: In Faysal Bank Branch Manager is responsible for making promotion which is made on the basis of performance. Two promotion Criteria are used: 1) On performance Basis 2) Without performance

Performance Basis: On the basis of performance no specific criteria for promotion. One can be performed from OG0 to OG1 grade with 3 month.

Without Performance: If the employee does not perform well for even consecutive three years then his promotion is must to next level.

Rent OR Residence Facility: House rent is paid to every one at a rate of 40% of basic salary. No residence facility is given to any one.

Medical Care: Faysal Bank provides medical facility to all of its employees.  If one employee is admitted in any hospital, bank will provide 700 daily.

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 All the medical bills are reimbursed by Faysal Bank if bills are proper invoices. The fallowing Hospitals are listed with Faysal Bank:  Gondal medical complex  Salamat Hospital  Sadique Sadiq Hospital

Transportation Facility: No transportation facility is provided by Faysal Bank. Only Branch Manager is provided with the patrol facility.

Pension: No pension is given as it is a private Bank. Only gratuity fund is provided 10% of basic salary per month is contributed by employee and equal amount is contributed by employer at the time of retirement both amounts along with interest is paid to employee.

Vacation Criteria: Faysal Bank provides an annual leaves of 42 with pay from which:  6 sick  6 causal  15 recreation leaves  15 privilege leaves

Transfer: 21

If an employee is periodically employed outside the town and the branch is being opened in the home town of the employee he is transferred to the home town branch. In case of any shortage, employees are also temporary transferred.

Career Management: Initially the fresh employees are selected on contract basis. If one selected on permanent basis six month probation period is applied. An employee has following opportunities for career building.

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President CEO

DCEO

General Manager

Area Manager

Regional

Senior Vice President

Unit Head

(SVP)

Vice President 2 VP 2

Vice President 1 VP 1

Regional Vice President 2 RVP 2

Regional Vice President 1 RVP 1

Assistant Vice President AVP

Assistance Vice President 1 AVP 1

Officer Grade Officer Grade 2 Officer Grade 3

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Performance Appraisal: To compare the employees current/past performance with their standards such process is called performance appraisal. Faysal Bank adopts the traditional appraisal method which is done on yearly basis. (Branch Manager of Faysal Bank) appraises from sweeper to operational manager and appraises of BM is done by area manager of Faysal Bank. Branch manager appraises all the employees by taking direct instructions from respective heads.

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Flaws in Practice  Salaries are given on individual basis but the company should adopt the policy of performance base salary system.  There is no separate human resource department in each branch of Faysal bank.  The company is not adopting the policy of direct hiring.  The performance appraisal has been done on traditional basis.(yearly basis)  Transportation facility has not been provided to all the employees except Branch manager.  No mobile facility is to be provided by Faysal bank.  There is no proper job rotation in Faysal bank.  No Traveling allowance is to be provided by Faysal bank.  Some time the working time exceeds the limits of twelve hours.

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Ergonomics/Biotechnology/Human Engineering (The study of work place design):

After making discussion with the different level of employees of Faysal bank, we study the workplace and the equipments used are best designed for the comfort, safety, efficiency. It means all the employees are satisfied with the policies as well as working environment of Faysal bank. As far as the overall productivity of Faysal bank is concerned, employees are not satisfied with the Faysal bank according to them the must attract more customer to increase its business as well as services

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