Interbank Clearing Proces (Within Same City

BAL, HYD

Clearing House

Central Bank Account

MCB, HYD

Steps: 1. 2. 3. 4. 5. 6. 7. 8. 9. Cross Cheque deposited by Customer. Special Crossing Stamp (By the Bank) Endorsement Stamp on back Payees A/c Credited. Cheque Process by Clearing House (SBP/ NBP) Delivery of Cheque to respective bank member. Checque sent to the respective branch. A/C Balance is checked and feedback to clearing house. At the Day end each member prepares a debit &credit report. Any deficiency or excess of amount in credited or debited to or from Central Bank Account to equating inwards and outwards. 10. Seltemenet through main branch/ Head Office to sub-branches by issueing ointernal Bank Credit or Debit Advice (IBCA/ IBDA)

Online Funds Transfer with Same Bank

BAL, HYD

H/O Account

BAL, KHI

ATM Funds Transfer with different Bank

BAL, KHI
Payer

BAL

H/O Account

Phonix System
ATM System

MCB

H/O Account

MCB, KHI
Beneficiary

ATM Funds Transfer with Same Bank

BAL, HYD

Phonix System

H/O Account

BAL, KHI
Collection process

BAL, GTK

BAL, HYD

Clearing House

Customer

H/O Account

MCB, HYD

Collection Process Where no Branch of Bank

BAL, HYD

HBL, Larkana

Customer HYD

HBL will generate D.D in

favour of BAL

Clearance House

HBL, HYD

Central Bank A/C

Steps for Import/ Export with L/C Transaction 1. Customer (Buyer/Importer) requests the Seller (Exporter) for Performa invoice (an agreed terms document). 2. On the basis of PI the customer applies for L/C issuance to the importing bank. 3. The Importing bank will now communicate for L/C to exporting bank to the exporter. 4. Exporter provides the related documents to the exporting bank to importing bank. 5. Next job of the importing bank is to check the documents, and to request for arrangement of payment to the customer. 6. Customer makes the payment against documents. 7. Importing bank sends payment to exporting bank. 8. Exporter is informed about payment received and prepares for shipment.

Salaries, Allowance and Benefits. Furniture Facility Employees range with VI and above can avail limited amount against purchase of electronic items/, curtains, carpets and furniture items for their personal use. A straight lime method of depreciation is used by the bank. The furniture allowance is discontinued from the month drawn. On resignation/ termination he/ she has to pay only the book value of the furniture t to the bank. This furniture facility amount is approved/ sanctioned by the Assistant Executive in charge, HR division. Title allowance: As per designation title employees are entitles to take this allowance. Provident fund (PF) All conformed employees are eligible for the PF Scheme. (8.33% of monthly salary for PF) Cash award on Passing Institute of Bankers Diploma Exams.. On passing a diploma of IBP, BAL awards his employees with certain cash amount as For Stage I For Stage II Rs: 50,000. Rs: 75,000, and

For Stage III Rs: 100,000. Reimbursement of the professional Courses fee: To meet the professional challenges BAL offer part of the cost of registration/ admission or the exam fees for the employees who undertake and successfully complete higher degrees and professional courses related to banking matters. In case of resign within one year of the last payment an employee will pay back all the expenses incurred during his/ her studies. Staff Insurance:

For all regular employees and contracted who are 60 and above are entitled to avail hospitalization insurance by the bank approved insurance company. All contracted employees below 60 are covered with Banks Insurance (Self only). Dependents: Parents who are not employed Wife and Children Insurance coverage Limits BAL has defined insurance range for the employee depending on the scale and experience. Higher rank higher coverage, and lower rank lower coverage and it ranges for 1M to 5M. End of service benefit (Retirement Benefit) 1. PF (own + bank) plus invested Income. 2. Gratuity payments a. If period < 5 years, no gratuity. b. If period is > or = to 5 years, last months drawn salary x no. of years worked. Performance Appraisal system PAS ia improved and upgraded with banks requirements ans well as market practices. Objectives of PA 1. 2. 3. 4. 5. 6. 7. 8. Improving the banks performance and its staff. Laying a sloid foundation for relationship b/w staff and management. Clarifying perfornmance target for all. Using the process for carrer planning and perfessional development of staff. Review of salary assignment and carreer path. Award of bonuses. Promotion to higher Salaries and functional responsibilities. Appraisal exercise is done for employees with equal to or more than 6 months services eith bank. Leave Rules 1. Privilage leave PL LFA 2. Minimum30 days full paym and maximum 60 days 3. For new joiners during the year oon prodata basis. Availment Atleast 15 days conteous leave

Casual Leaves (CL) 10 day one day at a time only in case of personal emergencies. Must be availed on or before 31 december and will no be carry forwarded. Sick Leave )SL)08 days Leave without pay (LWP) One moth Maternity Leave (ML) 06 weeks before pregnance and six weeks after. Traansfer, Travel and Bagage rules Expenses I fth officials travel will be bared by the bank. Mode of Travel Business Class and Economy Class Hotel Accomdation Domestic / Internationa depends on the rank or category of offices and for clerical sataff it is 500 and for nonclerical staff 250 perday. Daily allowance Employees who do not want to use hotel accommodation can claim daily allowance. It again depends for category to category. Staff Finance Policy 1. Hoiusing 2. Convenance 3. Car loan to branch Manager (in addition to the bank car) 4. Personal Finance (at miminum markup- maximum markup is 5%.) 5. Internal communication n 6. 1, Banks Website 7. E-mail facility 8. BAL newsletters issued by the HRD (Weekly) 9. Members at Branch level for guidaing and coaching youngs. 10. Monthly branch and ubit meetings. 11. Diciplane 12. Resifgnation. Termination & Retirement 13. Conifrmed employee one month notuce period in witten and can not avail leave within notice period. 14. If resigned on disciplinary grounds may be re-emplyes on the terms agreed b/s managionary period no notice required 15. Termination 16. With onr month pay (Gross) Performane Management Cycle.

Planning (Plan)

Rewarding (Act)

Performance Management

Controlling (Do)

Reviewing (Check)

Performance Management Cycle

PM cycles is a document as guide for both supervisors and employees for best results. Performanec Managemnt guide is provided to every employee to read abd do accordingly and consult for future reference. Priciples -Performance Management is a comprehensive process with a. Aligns individual team and organizational objectives. b. Streches Performance c. Supports Individual career development - Consistenet Methodology for assessment of every employee. - continuous, honest and constractive dialog between supervisor and employees. - Performance assessmenet is based on overall role performance and competancies alignwith BAL objectives of the an individual. Goals and Objective (SMART) For agrees performance levels sufficient training and support is provided.

Key Steps in Cycle. 1. 2. 3. 4. Setting SMART Gioals (Planning) in Jan - Feb Continous feedhback & mid-year review (Coaching) in June July Full year Revies (Reviesing) in December Link to compasations (Rewarding) Jan- Feb

Plamninig Process 1. What to be achieved and How to Achieve. 2. Five to Seven challenging goals to be set form performance plaaing form which include or relates to current job and or outside of the normal job scope. 3. Three selected or set goals are to be documented and sent to HRD at Start of the performance Management Cycle. 4. Performance Appraidsal is depeneded on two divisions 5. 1. SMART Goals (70%) 6. Core Behavioual Competancies. (30 %) Coaching Process Supervisor is bound to give feedback throughout the year to track progress and provide coaching , mid year review is very much necessary (face to Face) Supervisores to maintain Performance Log thoughout the year at one to one form. Employees are encouraged to maiuintain their own performance log. If uderperformenave is observed then a performance Improvement Plan is need to be created. Reviewing Process: Participation iof each employee in a formal, documented annual performance review with supervisors. For employee Self Avaluation form performance log thinling ahead of future performance.

Perfoormance ranking & Category Overall Performance Ranking 2.60 - 3.00 1.50 2.59 Upto 1.49 Performance Category Excellent Performing Partly Performing Definition Consistency exceeded expectation. Coinsistance met expactations, occasional exceeded. Did not consistently met expectations.

Rewarding Link to the compensation: 1. Cosideration a. Inflation official ly announced by the governetm of Pakisan. b. Overall Performance Performance Bonuses Link to the development (important Outcomes of the Perfromance management) a. Distribution of rewards and identificsation of development needs b. Necessary support through training for shor & long run. Performance Catagory Excelling Performing Partly performing Definition Around 25% Around 60% Around 15%

Core Behavioral Competancies (CBC) Communication (C ) Drive/ Motivation (DM) Planning & Organiziang (PO) Result Focus (RF) Taking Innitiative/ Responsibilty (TIR) Team workability (TA)

Performing Weiting 20% 10% 10% 20% 20% 20% 100% CBC model captures the desired behaviiours of employees. CBC document must encorporate the explanation of bevoiurs. CLP Documents required from customers For security: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Any property with value more than the applied Borrowers Basic Fact Sheet (For SMEs) Income Statement (Current) Balance Sheet (Current) Persoanl Network Statement (Shows Borrowers complete picture of financial matters) Client Call Report (Banks Document) Property Visit Report Projected Cash flows for next year (Current + Projected) Verticla nalysis of balance sheet and projected balance sheet Financual summary

11. Markup certificate

Credit Department

Evaluation 1. Financial State,emtn Anal=ysis a. Balance Sheet & Income Statement b. Horizontal, vertical, Trend and rationo analysis. 2. Nature of business to be considered. 3. Bank references 4. Plant Visit 5. Credit Rating 6. Report form SBP The 5 Cs of Credit a. Capacity: Capability if the borrowers to manage his business b. Collaterals: the security provided against facilities c. Character: Borrowers Charactern ( market stansing Position) Forms of Landing 1. 2. 3. 4. 5. Cash Credit Running Finance Term Finance (1 to 10 years) Purchase abd discounts of bills (usually import/ Export) Cash creidit (Pledge): providing stock in banks custody. Trade finance department Imoprt Export matters Rewqiuernemts of opening LC. 1. Performa Invoice 2. Indent 3. Application for import 4. Annexure B 5. iIssuance of consignment 6. Promissory note 7. L/C Margin 8. L/C Commssion

Creedit Department Funded credits: 1. 2. 3. 4. 5. 6. 7. 8. 9. Current Finance (OD) Cash Finance (Pledge)/ Hypothecation Term Finance FAPC-1 FAPC-2 FAFB LBP FIM FATR

Cash Financing(Running Financing) Pledge (Property or asser in control of the Bank) Hypothecation (Property or asset not in the control of the Bank but in the security of insurance company) Term Financing (Fixed amount for ceratin period mostly from one year to ten years, markup/ interest starts from the day of issuance) Financing against Packing Credit (FAPC 1) In favoutr of exporter, bank take 100 % on behalf of the purchaser. Finance against Packing Credit- 2 (FAPC- 2) Performane based financing, on behalf of last performance bank issues upto half of the limit. Finance against Foreign Bill (FAFB) Post Shipment Finance. Exporter presents documents of the shipment to bank. Bank purchases this document and provides finance to exporter. Local Bill Purchase (LBP) Inland import/ Export matters Foinance agaist Imported erchandise (FIM) Bank purchases the merchandise and keeps in its possession, as for as customer will pay the bank will issue a delivery order.

Finance against Trusted Receipt (FATR) Same as FIm, but the possession is given in hands of the importer in he/ she has A+ rating. Non-funded L/C (Letter of Credit)- Importer Side L/G (Letter of Guaranty)- Exporter Side L/C has two types 1. Sight L/C 2. Usance L/C Lettre of Credit is the non-funded finance only the bank takessuriyy on the behalf of importer and charges some amount. Types of L/G 1. 2. 3. 4. 5. 6. Bid Bond Perfance Bond Security deposit Repaymeny guarantee Mobilization advance Bank to bank guarantee

Security for advances 1. Pledge 2. Moveable and tangible property of the lender in possession of the bank for credit limit, but the ownership remain to the lender/ client. The commodities which are beign pledged are normallt the raw material, consumeables, finished good and in certain case work in Process. 3. Mortgage: 4. Immoveable Asset surrender proprietary rights of the property. Transferer (Mortgagor) transferee (Bank) Types of Mortgage: 1. Equitable mortgage When mortgage deed is attached and deposited in bank is known as equitable mortgage. 2. Registered Mortgage: When the title document and week or client is ot trustworthy then a mortgage deed in between the bank and client in registed. Mortgage deed is registered with the registar of the company. 3. Hypothecation

When immoveable property in offered for security against credit but both ownership or possession remains with the borrowers. Hypothecation is very risky