1.
AYESHA SEHAR
MB-10-55

2.
Products and
Services by
Commercial Banks

3.
Presenters
MEHMOOD KHAN
FARHAT SULTANA
IQRA SAMAD
MOHSIN ASLAM QURESHI
HAFIZ MUZAMIL HUSSAIN

4.
BANKING SECTOR TODAY
The banking business as we know it today is composed
of three separate and distinctive principal functions
these are:
 The acquiring of funds to invest and advances
The investing of such funds and advances (loans)
in bonds
 The servicing of such funds, such as providing of
checking, saving facilities and the collection of
draft, notes and cheques
These functions while deferring in detail of operations
follow the same principles established hundreds of
year ago by money lenders and exchangers.

5.
Small and Medium Enterprise (SME) means an entity,
ideally not a public limited company, which does not
employ more than 250 persons (if it is manufacturing /
service concern) and 50 persons (if it is trading
concern)
(a)A trading / service concern with total assets at
cost excluding land and building up to Rs 50 million.
(b) A manufacturing concern with total assets at cost
excluding land and building up to Rs 100 million.
(c) Any concern (trading, service or manufacturing)
with net sales not exceeding Rs 300 million as per
latest financial statements.

6.
An incorporated entity is a separate legal
entity that has been incorporated through a
legislative or registration process established
through legislation. Incorporated entities have
legal rights and liabilities that are distinct from its
shareholders, and may conduct business for
either profit-seeking business or not for profit
purposes.

7.
Brief History and Background of HBL
• HBL was the first commercial bank to be established in
Pakistan in 1947
• 1,425 branches in Pakistan and 55 braches across the
country
• The Government of Pakistan privatized HBL in 2004
• HBL is majority owned (51%) by the Aga Khan Fund for
Economic Development, 42.5% of the shareholding is
retained by the Government of Pakistan (GOP), whilst
7.5% is owned by the general public
• HBL offer products and services to Retail and Consumer
Banking.
• HBL has the largest Corporate Banking portfolio in the
country with an active Investment Banking arm. SME
and Agriculture lending programs and banking services
are offered in urban and rural centers

8.
BRIEF HISTORY AND BACKGROUND OF BANK
ALFALAH
• Incorporated on June 21st, 1997 as a public
limited company under the Companies
Ordinance 1984
• Its banking operations commenced from
November 1997
• Belongs to Abu Dhabi Group
• One of the Leading Banks in Pakistan

9.
BRIEF HISTORY AND BACKGROUND OF MEEZAN
BANK
• Meezan Bank Limited, a publicly listed
company, was incorporated on January
27, 1997.
• Meezan Bank has clearly established itself
as the largest Islamic Bank in Pakistan
with the largest Islamic Banking branch
network in the country.
• Meezan Bank was granted the nation’s
first full-fledged commercial banking
license as a dedicated Islamic Bank, by
the State Bank of Pakistan.

10.
MEHMOOD KHAN
MB-10-74

11.
Individual Customers
Products and Services:
1. HBL Car Loan
2. HBL Credit Card
3. HBL Debit Card
4. HBL Home Loan
5. HBL Personal Loan
6. HBL Deposit Accounts
7. HBL ATM
8. HBL Phone Banking
9. HBL Internet Banking
10. HBL Mobile Banking
11. HBL Bancassurance Products
12. Safety Deposit Lockers

12.
Business Customers
1. Corporate Banking
HBL provides the following services to meet their
requirements:
• Working Capital Finance
• Export Financing
• Import Financing
• Receivable Discounting
• Islamic Banking facilities
• Trade Services including Letter of Credit, Letter of
Guarantee, etc.

13.
Business Customers (Contd.)
2. Commercial Banking
HBL offers financing for the following:
• Working Capital
• Procurement of Inventory
• Receivables
• Procurement of Machinery
• Expansion of production facilities
• Import of raw materials
• Exports
• Guarantees

14.
Business Customers (Contd.)
3. SME Banking
• HBL Freedom Account
• HBL Easy Loan
• HBL Small Business Finance
• HBL Trade Power
• Value Added Services

15.
Business Customers (Contd.)
4. HBL Zarai Banking
• Crop Inputs
• Farm Implements & machinery
• Tractors/Agricultural Vehicles
• Livestock
• Poultry
• Fish Farming
• Joint finance facility for a group of farmers

16.
HBL Islamic Banking
1. Deposit Accounts
• HBL Basic Banking Account (BBA)
• HBL Current Account
• HBL PLS Account
• HBL Al-Samarat Account
• HBL Al-Mukhtar Account
• HBL Al-Irtafa Account

17.
HBL Islamic Banking (contd.)
2. Financing Products
• HBL Murabaha
• HBL Ijarah
• HBL Diminishing Musharaka

18.
HBL Islamic Banking ( contd.)
3. Trade Services
• Letter of Credit Facility
• Collection of Foreign Bills
• Collection of Local Bills
• Letter of Guarantees
4. Value Added Services
• ATM/Debit Card Facility
• Foreign Remittances
• Utility Bills Collection
• HBL Internet Banking
• HBL Phone Banking

19.
FARHAT SULTANA
MB-10-32

20.
Product & Services
• Checking acconts
Basic Banking account
Account can be open by Rs 5000/- and
customer does recieve an ATM card. This
account is targeted is towards the salaried
individuals , students or any other individual that
may want to open an account with a small
amount of money.

21.
Cont,….
• Current account
This account does not provide any profit on it and
neither zakat is deducted. The major segments of
this account are sole proprietors, partnerships,
companies (both private& public) and any other
individuals.
• PLS account
In this account interest is paid annually and zakat
is also deducted from it .The main segment of
this account are people who want to save
money include household etc.

22.
Cont,……
• Kamyab karobar account
It is a loan account and suitable for small business
owners.
• Royal profit Account
It is a saving account and required minimum
balance of Rs 5oooo/. Profit is provide quaterly
and zakat is also deducted
• Fix account
It is a term account and profit is paid annually.

23.
 Lockers
Bank Alfalah provides safe deposit locker
facility to its customers for safe keeping of
their valuables like documents, securities and
jewellery etc. Various sizes to choose from
small, medium & large.
 Car financing
Car Financing is one of the major renowned
product of Bank Al-Falah and can be utilized
in terms of Financing of Used Vehicles, Loan
against Car and it is has lowest mark up,lower
Insurance,quick processing and lower down
Payment

24.
 Rupee travelers cheques
Rupee Travelers Cheques are as good as cash and
are accepted at the major shops, travel agents,
hotels business establishments and all over the
country and abroad.
 Online banking
It provide fully automated on-line telephone
banking facilities to its customers enabling them
to carry out banking transactions

25.
 Credit card
Bank Al-Falah Visa Card is everywhere
and globally accepted and welcomed at
locations displaying the VISA logo. There
are 3 major types of Al-Falah credit
cards.
 Al falah platinum
 Titanium card
 Gold & silver card
 Debit card
Bank Al Falah Limited presents Al Falah
Hilal Card

26.
 Funded & Unfunded Loans
• Funded capitals are mainly short term; it can be a
long term facility too. It is also categorized in to
running finance and term finance.
• Unfunded capital facility comes in the form of
either Letter of Credit (LC), a facility that is used
for import and export facility and Letter of
Guarantee (LG), a facility used in tenders filled for
a specific job.

27.
 Automated teller machine(ATM)
The bank offers 24 hours self service banking
facilities to it customers on country wide basis
through deployment of Automated Teller
Machine.
 Home financing
It has been bifurcated in terms of “Home Buyer,
Home Construct, Home Improver, Home Balance
Transfer Facility”.
Financing Limit : uptoRs. 10,000,000/-
Tenure : upto 20Years
Equity Participation : 30% Borrower / 70%
Bank

28.
Islamic Banking
A separate division is a recently initiated, which
operates as separate branch. Islamic Banking has
launched following products.
• Al-Falah Masharaka Homes
• Murabaha Finance
• Aflalah Car Ijarah

29.
Iqra Samad
MB-10-60

30.
Meezan Bank
• Meezan bank is an Islamic bank licensed by state
bank of Pakistan.
• Meezan Bank Ltd. is a publicly listed company with
a paid-up capital of Rs. 9 billion.
• The JCR-VIS Credit rating company has short term
rating at A-1+ and long term rating at AA-
• Meezan bank has 280 branches in 88 cities.

31.
PRODUCTS AND SERVICES OF MEEZAN BANK
• Meezan Bank Personal Banking.
• Non Residential Pakistani Banking.
• Corporate & Commercial Banking.
• Investment Banking.
• Asset Management.
• Islamic Financial Advisory Services.

32.
Meezan Bank Personal Banking
 Current And Saving Account
 Rupee current account(riba free)
 Rupee saving account(monthly profit payment)
 Dollar saving account(foreign currency based
investment opportunity)
 Meezan bachat bank(high expected rate of return)
 Karobari munafa account (For large Corporate Entities)
 Labbaik saving aasaan
 Meezan business plus

33.
 Term Certificate
 Certificate of Islamic investment.
 Meezan aamdan certificate.
 Meezan providence certificate.
 Monthly mudarbah certificate.
 Dollar mudarbah certificate.

34.
• Consumer Finance
• Car Ijarah (Auto Financing)
• Easy home (housing finance)
• 24/7 Banking
• Visa Debit Card
• 24/7 Debit Card (No Longer Issued)
• Internet Banking
• ATM Network
• SMS Alert
• 24/7 Call Center

35.
Special Banking
 8 to 8 Banking (8 am - 8 pm banking)
 Ladies Banking

36.
Non Residential Pakistani Banking
 Meezan Home Remittance
Corporate & Commercial
Banking
 Corporate Banking
 Commercial Banking
 SME Banking

37.
Investment Banking
 Syndications & Structured Finance
 Project Financing
 Financial Advisory Services
Asset Management
 Al Meezan Mutual Fund Limited (AMMF)
 Meezan Islamic Fund (MIF)
 Meezan Balanced Fund (MBF)
 Meezan Islamic Income Fund (MIIF)
 Meezan Tahaffuz Pension Fund (MTPF)

38.
 Meezan Capital Protected Fund-I (MCPF-I)
 Meezan Mahana Kharch Account (MMKA)
 Meezan Cash Fund (MCF)
 Meezan Sovereign Fund (MSF)

39.
Islamic Financial Advisory Services
 Product Development and Product Refinement
 Islamic Capital Market Advisory Services
 Establishing and Managing Islamic Market Indices
 Advisory Services to Start-up Firms
 Shariah-Compliant Corporate Restructuring
 Internal and External Training Sessions
 Shariah Audit, Compliance & Strengthening Internal Controls

40.
Moshin Aslam Qureshi
MB-10-17

41.
SWOT ANALYSIS

42.
STRENGTHS
 COMPASSIONATE CUSTOMER SERVICE
 GOODWILL & TRUST
 LOCATION
 WIDE BRANCH NETWORK
 THE COMPUTERIZED SYSTEM

43.
WEAKNESSES
Perfection is only the claim of Allah Almighty. No
other being living or dead can say this for itself.
Similarly, Bank Al-Falah also has some
shortcomings that need to be mentioned:
 ADVERTISEMENT
 PROBLEMS OF EMPLOYEES

44.
OPPORTUNITIES
Bank Al-Falah has grown up its business with a
very high pace and it has got tremendous
popularity, even with in a very short span of time.
There are many opportunities for the bank and by
availing that it can stand amongst the top foreign
banks.
 INFORMATION TECHNOLOGY
 EXTENSION OF BRANCH NETWORK
 GROWTH IN DEPOSITS

45.
THREATS
 ECONOMIC CONDITIONS
 COMPETITORS
The SWOT analysis of the bank signifies that its
strengths overcome its weaknesses and its
opportunities are more than its threats. This is a
positive sign for any organization.

46.
Strengths
HBL enjoys the following strengths:
• HABIB BANK is a well established bank enjoying
long history of over 65 years of experience and
profitable operation.
• People trust ratio is very high.
• It has the largest branch network among private
banks of Pakistan.

47.
Weaknesses
HBL has the following weaknesses :
• Lack of communication.
• Lack of managerial training.
• Assets less than NBP.

48.
Opportunities
• E-Banking
• Low mark up rates
• ONLINE BANKING
• AUTOMATIC TELLER MACHINE (ATM)
• Rate of Return

49.
Threats
In the context of HBL’s external
environment, the following potential threats exist:
• Other private commercial bank with sound
profitability is also a threat to HBL e.g. UBL,
Alfalah, MCB etc
• The Rupee Travelers Cheque (RTC) sales volumes
may be affected on account of regulatory
restriction imposed by SBP on issuance of large
value denominations.

50.
STRENGTHS
• Pioneer in Islamic Banking
• The largest Islamic Bank in Pakistan with a network
of over 201 branches in 54 cities.
• The members of the Shariah Supervisory Board.

51.
WEAKNESSES
• Lack of Training Programe
• The decision-making is carried out the upper
management level and the subordinates are not
included in this process.

52.
OPPORTUNITIES
• House financing sector can be targeted to
maximize the profit.
• Growing demand of Islamic financial product and
services.
• Venturing into Islamic groups out side the
countries as opportunity to expand business in
UAE and Golf states. I-e financial institutions.

53.
THREATS
• Competitors
• Economic conditions

54.
Hafiz Muzamil
Hussain
MB-10-41

55.
Conclusion
 During the last few years the banking sector has
witnessed phenomenal growth propelled primarily by
a multi pronged process , deregulation and
privatization.
 New managers have been responsible for its
lethargy to one which is highly competitive and agile.

56.
Cont’d…
The sector has achieved unprecedented
profitability coupled with large untapped market, is
seen as an attractive investment option by both local
and overseas investor.
 Increased competitiveness has resulted in
aggressive marketing of new and innovative
consumer centric products which has created a
buyer's market.

57.
Cont’d….
 Lack of consumer education and inadequate
knowledge has been cause of subsequent distress
for consumers
 SBP has regularly issued guidelines to educate
the market to raise consumer awareness.
 Banks are now seen to be taking steps to
explain product intricacies to customers.

58.
Cont’d….
 An issue has been faced by the borrowers is
rising rate environment.
 Rates have almost been doubled in the last
couple of years.
 Different loans have different rates and are
thus subject to frequent rate revision.
 Compelling case for banks is to design fixed
rate consumer products so that consumer may
plan accordingly.

59.
Cont’d…
 The govt should establish a long term debt market
aimed at deepening the financial market capacity
so that fixed rate medium to long tenure assets can
be introduced in the market.
 The model that should be applied is the Malaysian
cagamas model.
 Malaysian cagmas model primarily created to
make mortgages more accessible and affordable,
since it has added bank credit liabilities to product
suite.