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 multi-

purpose 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

• Convenience

• Control over your Finances

• Security

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Main Products and Services:

Products and Services

o Products Deposit Products (Accounts)

The Faysal Sahulat Account

The Faysal Savings Account

Rozana Munafa Account

Rozana Munafa Plus Account

Faysal Premium and Premium Extra Accounts

Faysal Izafa

Mahfooz Sarmaya

Consumer Finance Products Faysal Car Finance

Faysal Housing Finance

Faysal Finance

o Services Cash Management

ATM and Debit Cards

Travelers Cheques

Inter-Branch Transfer of Funds

Safe Deposit Lockers

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.

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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

• 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)

• Duration of test is 2-3 hours

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

• 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

• Panel Interview is conducted

• Panel consists of 3-7 members

• Expected salary and information about information about past job is

gathered

• Nature of job and responsibilities are discussed with the candidate

• 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.

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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.

All the medical bills are reimbursed by Faysal Bank if bills are proper

invoices.

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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: 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.

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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.

CEO President

DCEO

Area Manager

Unit Head

General ManagerRegional

Senior Vice President (SVP)

Vice President 2VP 2

Regional Vice President 1 RVP 1

Vice President 1VP 1

Regional Vice President 2 RVP 2

Assistance Vice President 1 AVP 1

Assistant Vice President AVP

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