State Bank Of Pakistan

PERCENTAGE OF WORK DONE BY GROUP MEMBERS

GROUP MEMBERS:

LARAIB ABID
MARYAM MUKHTIAR
NUDRA SIDDIQUI
SYEDA WAJEEHA SHAH

25%
25%
25%
25%

COMMENTS:
LARAIB ABID:
I have done interview, editing, and complete formatting of the report.
MARYAM MUKHTIAR:
I have done interview, collection of data required, and editing of the
report.
NUDRA SIDDIQUI:
I have done compiling of material collected for report.
SYEDA WAJEEHA SHAH:
I have done interview, editing of questionnaire, and data collection for
report.

TABLE OF CONTENT
WORK
PARTITION............................................................................................
..................I
TABLE OF
CONTENTS............................................................................................
...........II
ACKNOWLEDGEMENT.............................................................................
........................IV
EXECUTIVE
SUMMARY.............................................................................................
........V
CHAPTER1............................................................................................
..................................1
INTRODUCTION .......................................................................................................
.............1
CHAPTER
2..........................................................................................................
..................3
VALUES....................................................................................................................
...............3
2.1 core
values......................................................................................................................
.....3
2.2 Ensuring the
soundness ..................................................................................................4
2.3 Exchange
Report ................................................................................................................5
2.4 Development
Role ..............................................................................................................6
CHAPTER
3..........................................................................................................
...................7
CORPORATE
ORGANOGRAM .............................................................................................7
CHAPTER
4..........................................................................................................
...................8
BOARD OF DIRECTORS
- .....................................................................................................8
CHAPTER
5..........................................................................................................
.................11
MANAGEMENT .........................................................................................................
...........11

II

CHAPTER
6..........................................................................................................
.................13
CORPORATE SOCIAL
RESPONSIBILITY ........................................................................13
6.1 Social
Services ..................................................................................................................
13
6.2 Training and
Education .....................................................................................................13
6.2.3 Industrial Training
Institute ...........................................................................................14
6.3 Medical
Services .......................................................................................................... 15
CHAPTER
7 .........................................................................................................
.................17
SWOT
ANALYSIS ...............................................................................................................
17
7.1
Strengths ................................................................................................................
...........17
7.2
Weaknesses ............................................................................................................
...........17
7.3
Opportunities ..........................................................................................................
..........18
9.4
Threats ....................................................................................................................
..........19
CHAPTER
8..........................................................................................................
................20
HUMAN RESOURCE
DEPARTMENT ...............................................................................20
10.1 Structure of Human Resource
Department ....................................................................21
10.3 Responsibilities of HR
Department ...............................................................................22
10.7 Training
&Development.................................................................................................27
10.8
Outsourcing ............................................................................................................
........27

II

10.12 Employees
Relations ..................................................................................................27
CHAPTER
9..........................................................................................................
................28
RECRUITMENT, SELECTION AND
APPOINTMENT .....................................................28
9.1 Recruitment at
SBP ..........................................................................................................28
9.2 Eligibility criteria for
selection..........................................................................................29
9.3
Recruitment.............................................................................................................
..........30
CHAPTER
10........................................................................................................
................32
PAY, INCENTIVES AND
PENALTY .................................................................................32
10.1 General Salary
Structure.................................................................................................32
12.2 Compensation and
Benefits ...........................................................................................33

II

CHAPTER
11 .......................................................................................................
...............36
RETIREMENT.............................................................................................................
.........36
11.1 Pension
selection.........................................................................................................,..39
CHAPTER
12........................................................................................................
...............41
INTERNSHIP PROGRAM
AT ............................................................................................41
12.1 Procedure of Conducting Internship
Program ..............................................................41
12.2 Advantages from Internship
Program ...........................................................................41
CHAPTER
13........................................................................................................
...............42
PERFORMANCE &
MANAGEMENT ...............................................................................42
13.1 Performance management
phase....................................................................................44
13.2 performance review phase
............................................................................44
CONCLUSION .......................................................................................
.............................47
APPENDIX
A..........................................................................................................
.............48
QUESTIONNAIRE .....................................................................................................
................48
REFERENCES ........................................................................................
...................................50

III

ACKNOWLEDGEMENT
Alhamdulillah, indeed all praise is due to Allah. We praise Him and seek His help
and forgiveness. Our every success belongs to ALLAH and our parents.
We are grateful to our course instructors Ms Nazish Nouman, our subject teacher
without her guidance it wouldnt be possible to complete our report. We would
like to thank our university Jinnah University for Woman for providing us a
platform to show our talent and for polishing us.
We are thankful to State Bank of Pakistan and its employees who provide us the
platform to complete our report successfully, special thanks to Mr. Faisal Fareed
Khan (Joint Director of HR Department) of SBP.
Last but not the least we would like to thank all the people who contributed and
helped us in direct and indirect way. Thank you so much for your collaboration.

IV

EXECUTIVE SUMMARY
This project has been undertaken in order to highlight the Human Resource
Practices of State Bank Of Pakistan. The State Bank of Pakistan (SBP; Urdu:
) is the central bank of Pakistan. While its constitution, as originally
laid down in the State Bank of Pakistan Order 1948. The State Bank of Pakistan's
policy encouraged expansion in established banks, establishment of new banks,
and weeding out of unsound banks just to faster the growth of banking system in
the country. New policies were aimed at creating an enabling environment for
the professional development of staff by rooting them in merit-based,
performance oriented and transparent procedures and processes. However,
keeping in mind the absorption capacity of the institution for change and also to
ensure effective implementation, rollout of these policies was prioritized. In the
first instance, implementation of the new HR Structure and Performance
Management System was initiated. The remaining policy initiatives are being
introduced gradually. An HR professional having rich experience in HR practices
and exposure of working in several international organizations was hired and
appointed as Director HR. His induction has indeed helped in expediting the
implementation of policies. The State Bank of Pakistan has a smooth HR practice.

CHAPTER # 01
INTRODUCTION
1.1 State Bank Of Pakistan:
The State Bank of Pakistan (SBP) is the central bank of Pakistan. After its
nationalization in 1974 the scope of its functions was considerably enlarged.
There are two subsidiaries of SBP namely State Bank of Pakistan-Banking
Services Corporation (SBP-BSC) and National Institute of Banking and Finance
(NIBAF). The Governor SBP is chairperson of Boards for both the subsidiaries.
1.2 HRD ACTION PLAN 2011-2015
HRD developed a comprehensive five-year action plan in alignment with the
overall strategic direction of the Bank. The plan focuses on three specific goals
aimed at improving efficiency and effectiveness of the existing HR policies and
programs. These goals are: to further improve SBPs work ethics philosophy,
promote value-based performance culture, and enhance the effectiveness of
various HR policies such as succession planning, performance management,
recruitment and compensation, balancing bank-wide workload distribution, and
implementation of capacity building initiatives in co-ordination with Training &
Development Department. HRD plans to implement these targets in a prioritydefined phase wise approach within the next five years.
1.3 Our People, Our Assets
At the State Bank, we firmly believe that the principal source of our strength as
an organization is our human resource base. Managerial attention at the Bank
has therefore been focused on the need to continuously invest in people, provide
them with the right incentives to perform better and to make merit and
performance the criteria for professional and career development. At the State
Bank, we strive to develop and sustain a work environment in which each
employee is empowered, is provided with opportunities for professional growth
and is recognized and rewarded for the contribution made towards achievement
of organizational objectives. We value diversity in terms of the unique
characteristics that each member of our team brings to the organization as
reflected in diverse educational and professional backgrounds, cultural and
gender perspectives. This mix positively impacts institutional approach and
decision processes by providing broader horizon, helping along the way the
institution to be a more aware and responsive organization.

Page | 1

1.5 Vision Statement

We are committed to excellence at acquiring, developing and retaining the right
talent by:
Aligning our HR policies with market Serving as a strategic partner to the line
Departments Administering superior and prompt HR services.
1.6 Mission Statement
To transform the State Bank of Pakistan into an Employer of Choice this
nurtures talent through its enabling culture.

Page | 2

CHAPTER # 02
VALUES
2.1 Core Values of State Bank of Pakistan
State Bank of Pakistan is the Central Bank of the country. While its constitution,
as originally laid down in the State Bank of Pakistan Order 1948, remained
basically unchanged until 1st January 1974 when the Bank was nationalized, the
scope of its functions was considerably enlarged. The State Bank of Pakistan Act
1956, with subsequent amendments, forms the basis of its operations today.
Under the State Bank of Pakistan Order 1948, the Bank was charged with the
duty to "regulate the issue of Bank notes and keeping of reserves with a view to
securing monetary stability in Pakistan and generally to operate the currency
and credit system of the country to its advantage". The scope of the Banks
operations was considerably widened in the State Bank of Pakistan Act 1956,
which required the Bank to "regulate the monetary and credit system of Pakistan
and to foster its growth in the best national interest with a view to securing
monetary stability and fuller utilization of the countrys productive resources".
Under financial sector reforms, the State Bank of Pakistan was granted autonomy
in February 1994. On 21st January, 1997, this autonomy was further
strengthened by issuing three Amendment Ordinances (which were approved by
the Parliament in May, 1997) namely, State Bank of Pakistan Act, 1956, Banking
Companies Ordinance, 1962 and Banks Nationalization Act, 1974. The changes in
the State Bank Act gave full and exclusive authority to the State Bank to regulate
the banking sector, to conduct an independent monetary policy and to set limit
on government borrowings from the State Bank of Pakistan. The amendments in
Banks Nationalization Act abolished the Pakistan Banking Council (an institution
established to look after the affairs of NCBs) and institutionalized the process of
appointment of the Chief Executives and Boards of the nationalized commercial
banks (NCBs) and development finance institutions (DFIs), with the State Bank
having a role in their appointment and removal. The amendments also increased
the autonomy and accountability of the Chief Executives and the Boards of
Directors of banks and DFIs.
Like a Central Bank in any developing country, State Bank of Pakistan performs
both the traditional and developmental functions to achieve macro-economic
goals. The traditional functions, which are generally performed by central banks
almost all over the world, may be classified into two groups:
(a) the primary functions including issue of notes, regulation and supervision of
the financial system, bankers bank, lender of the last resort, banker to
Government, and conduct of monetary policy, and
(b) the secondary functions including the agency functions like management of
public debt, management of foreign exchange, etc., and other functions like
advising the government on policy matters and maintaining close relationships
with international financial institutions. The non-traditional or promotional
functions, performed by the State Bank include development of financial
Page | 3

framework, institutionalization of savings and investment, provision of training

facilities to bankers, and provision of credit to priority sectors. The State Bank
also has been playing an active part in the process of islamization of the banking
system. The main functions and responsibilities of the State Bank can be broadly
categorized as under.

Page | 4

2.2 Ensuring the Soundness of Financial System

Regulation and Supervision
The "Prudential Regulations" for banks, besides providing for credit and risk
exposure limits, prescribe guide lines relating to classification of short-term and
long-term loan facilities, set criteria for management, prohibit criminal use of
banking channels for the purpose of money laundering and other unlawful
activities, lay down rules for the payment of dividends, direct banks to refrain
from window dressing and prohibit them to extend fresh loan to defaulters of old
loans. The existing format of balance sheet and profit-and-loss account has been
changed to conform to international standards, ensuring adequate transparency
of operations. Revised capital requirements, envisaging minimum paid up capital
of Rs.500 million have been enforced. Effective December,1997, every bank was
required to maintain capital and unencumbered general reserves equivalent to 8
per cent of its risk weighted assets.
The "Rules of Business" for NBFIs became effective since the day NBFIs came
under State Banks jurisdiction. As from January, 1997, modarbas and leasing
companies, which are also specialized type of NBFIs, are being
regulated/supervised by the Securities and Exchange Commission (SECP), rather
than the State Bank of Pakistan.
2.3 Exchange Rate Management And Balance Of Payments
One of the major responsibilities of the State Bank is the maintenance of external
value of the currency. In this regard, the Bank is required, among other measures
taken by it, to regulate foreign exchange reserves of the country in line with the
stipulations of the Foreign Exchange Act 1947. As an agent to the Government,
the Bank has been authorized to purchase and sale gold, silver or approved
foreign exchange and transactions of Special Drawing Rights with the
International Monetary Fund under sub-sections 13(a) and 13(f) of Section 17 of
the State Bank of Pakistan Act, 1956.
The Bank is responsible to keep the exchange rate of the rupee at an appropriate
level and prevent it from wide fluctuations in order to maintain competitiveness
of our exports and maintain stability in the foreign exchange market. To achieve
the objective, various exchange policies have been adopted from time to time
keeping in view the prevailing circumstances. Pak-rupee remained linked to
Pound Sterling till September, 1971 and subsequently to U.S. Dollar. However, it
was decided to adopt the managed floating exchange rate system w.e.f. January
8, 1982 under which the value of the rupee was determined on daily basis, with
reference to a basket of currencies of Pakistans major trading partners and
competitors. Adjustments were made in its value as and when the circumstances
so warranted. During the course of time, an important development took place
when Pakistan accepted obligations of Article-VIII, Section 2, 3 and 4 of the IMF
Articles of Agreement, thereby making the Pak-rupee convertible for current
international transactions with effect from July 1, 1994.
Page | 5

After nuclear detonation by Pakistan in 1998, a two-tier exchange rate system

was introduced w.e.f. 22nd July 1998, with a view to reduce the pressure on
official reserves and prevent the economy to some extent from adverse
implications of sanctions imposed on Pakistan. However, effective 19th May
1999, the exchange rate has been unified, with the introduction of market-based
floating exchange rate system, under which the exchange rate is determined by
the demand and supply positions in the foreign exchange market. The surrender
requirement of foreign exchange receipts on account of exports and services,
previously required to be made to State Bank through authorized dealers, has
now been done away with
and the commercial banks and other authorized dealers have been made free to
hold and undertake transaction in foreign currencies. As the custodian of
countrys external reserves, the State Bank is also responsible for the
management of the foreign exchange reserves. The task is being performed by
an Investment Committee which, after taking into consideration the overall level
of reserves, maturities and payment obligations, takes decision to make
investment of surplus funds in such a manner that ensures liquidity of funds as
well as maximizes the earnings. These reserves are also being used for
intervention in the foreign exchange market. For this purpose, a Foreign
Exchange Dealing Room has been set up at the Central Directorate of State Bank
of Pakistan and services of a Forex Expert have been acquired.
2.4 Developmental Role of State Bank
The responsibility of a Central Bank in a developing country goes well beyond the
regulatory duties of managing the monetary policy in order to achieve the
macro-economic goals. This role covers not only the development of important
components of monetary and capital markets but also to assist the process of
economic growth and promote the fuller utilization of a countrys resources.
Ever since its establishment, the State Bank of Pakistan, besides discharging its
traditional functions of regulating money and credit, has played an active
developmental role to promote the realization of macro-economic goals. The
explicit recognition of the promotional role of the Central Bank evidently stems
from a desire to re-orientate all policies towards the goal of rapid economic
growth. Accordingly, the orthodox central banking functions have been combined
by the State Bank with a well-recognized developmental role.
The scope of Banks operations has been widened considerably by including the
economic growth objective in its statute under the State Bank of Pakistan Act
1956. The Banks participation in the development process has been in the form
of rehabilitation of banking system in Pakistan, development of new financial
institutions and debt instruments in order to promote financial intermediation,
establishment of Development Financial Institutions (DFIs), directing the use of
credit according to selected development priorities, providing subsidized credit,
and development of the capital market.

Page | 6

CHAPTER # 03
CORPORATE ORGANOGRAM

Figure

Page | 7

CHAPTER # 04
BOARD OF DIRECTORS
Page | 8

The Central Board consists of ten members: the Governor (who is Chairman),
Secretary, Finance Division, Government of Pakistan, and eight Directors,
including at least one from each province, who shall be eminent professionals
from the fields of economics, finance, banking and accountancy, to be appointed
by the Federal Government. The Directors are appointed for terms of up to three
years.
The current members of the Central Board of
SBP:

Chairman: Mr. Ashraf

Mahmood Wathra
Governor

Dr. Waqar Masood Khan

Secretary, Finance
Division,
Government of Pakistan
Appointed on April 16,
2013

Mirza Qamar Beg

Appointed on May 27,
2009
Present term ends on
May 25, 2015

Page | 9

Mr. Mehmood
Mandviwalla
Appointed on February
26, 2013
Present term ends on
February 25, 2016

Mr. M. Nawaz Tiwana

Appointed on February
26, 2013
Present term ends on
February 25, 2016

Mr. Iskander Mohammed

Khan
Appointed on February
26, 2013
Present term ends on
February 25, 2016

Khawaja Iqbal Hassan

Appointed on February
26, 2013
Present term ends on
February 25, 2016

Page | 10

Mr. Muhammad
Hidayatullah
Appointed on March 15,
2013
Present term ends on
March 14, 2016

Mr. Zafar Masud

Appointed on March 16,
2013
Present term ends on
March 15, 2016

Sahar Z. Babar
Corporate Secretary

Page | 11

CHAPTER # 05
MANAGEMENT
Name
Mr. Yaseen Anwar
Mr. Kazi Abdul
Muktadir

Designation

E-mail
yaseen.anwar@sbp.org.pk
governor.office@sbp.org.p
k

Phone
021-99212447
021-99212448

Sahar.babar@sbp.org.pk

021-99212522

Directors
riaz.riazuddin@sbp.org.pk
mushtaq.khan@sbp.org.pk

021-99212535
021-99213094

azhar.kureshi@sbp.org.pk

021-99212415

ED-DFG/BPRG

ashraf.khan@sbp.org.pk

021-99217216

ED-BSG
ED-FMRM
ED-Operations

qasim.nawaz@sbp.org.pk
asad.qureshi@sbp.org.pk
inayat.hussain@sbp.org.pk

021-99212496
021-99212453
021-99211059

ED - FRMG

haroon.rasheed@sbp.org.pk 021-99211869

Governor
Deputy
Governor
(Banking)

Ms. Sahar. Z. Babar Corporate

Secretary
Chief Economic Advisers/ Executive
Mr. Riaz Riazuddin CEA-MP
Dr. Mushtaq A. Khan CEA-PD
Mr. Azhar Iqbal
ED
Kureshi
Mr. Muhammad
Ashraf Khan
Mr. Qasim Nawaz
Mr. Asad Qureshi
Mr. Inayat Hussain
Mr. Muhammad
Haroon Rasheed

021-99212455
kazi.abdulmuktadir@sbp.org. 021-99212456
pk

Monetary Policy & Research/Policy Development Cluster

Dr. Hamza Ali Malik Director-MPD
hamza.malik@sbp.org.pk
Dr. Muhammad Ali
Director-RD
ali.choudhary@sbp.org.pk
Choudhary
Dr. Azizullah Khattak Director-S&DWD

aziz.khattak@sbp.org.pk

bashir.zia@sbp.org.pk
Mr. Bashir Ahmed
Chief Librarian
Zia
Banking & Development Finance Cluster
DirectorSyed Samar Husnain IH&SMEFD
samar.husnain@sbp.org.pk
Dr. Saeed Ahmed

Director
AC&MFD

Dr.Ahmed@sbp.org.pk

021-99212533
021-99218137
021-99212565
021-99212460

021-99212464
021-99221285

Mr. Shaukat Zaman Director-BPRD

Ms. Lubna Farooq
Director- OSED
Malik

shaukat.zaman@sbp.org.pk 021-99213580
lubna.farooq@sbp.org.pk

021-99221602

Mr. Saleem Ullah

saleem.ullah@sbp.org.pk

021-99212495

Director-IBD

Mr. Mohsin Rasheed Head-CPD

mohsin.rasheed@sbp.org.pk 021-99212432
Page | 12

Head-BID/DFIs EC
Mr. Nadeem
Inspection (On- nadeem.ahmed@sbp.org.pk 021-99212507
Ahmed Jami
site) Department
Financial Markets and Reserve Management Cluster
Mr. Muhammad Ali
Director-DMMD
Muhammad.AliMalik@sbp.org021-99213960
Malik
.pk
Mr. Mohammad
Director-EPD
mansoor.ali@sbp.org.pk
021- 99212459
Mansoor Ali
Mr. Aniq Aziz
Head - IMID
Operations Cluster

aniq.aziz@sbp.org.pk

021-99217193

Mr. Riaz Nazar Ali

Chunara

Director-FD

riaz.chunara@sbp.org.pk

021-99212481

Mr. Altaf Hussain

Head - TOD

altaf.hussain@sbp.org.pk

021-99221177

Mr. Sabah-Uz-ZamanCIO-ISTD

sabah.zaman@sbp.org.pk

021-99212539

Syed Irfan Ali

syed.irfan@sbp.org.pk

021-99221549

CLA- General
Counsel Office

Mamoon.Kazi@sbp.org.pk

021-99212541

Director-M&AGD

asma.ibrahim@sbp.org.pk

021-99221011

Justice (R)
Mamoon Kazi
Dr. Asma Ibrahim

Director-PSD

Oficers Reporting to Governor

Director-ERD/
Syed Wasimuddin
syed.wasimuddin@sbp.org.p 021-99212562
Chief
Spokesperson k
Mr. Nasrullah Khan
Additional
Zuberi
Director -IA&CD nasrullah.zuberi@sbp.org.pk 021-99217242
Mr. Ahsan Kamal
Mr. Mansoor
Hassan Siddiqui

Director-HRD

ahsan.kamal@sbp.org.pk

021-99221489

Director-SPD

mansoor.hassan@sbp.org.pk 021-99221557

Figure

(As per practice, names of EDs and Directors on deputation with BSC,
NIBAF and FMU or Leave have not been included in this list.

Page | 13

CHAPTER # 06
CORPORATE SOCIAL RESPONSIBILITY
Corporate social responsibility (CSR) refers to a business practice that involves
participating in initiatives that benefit society. As consumers' awareness about
global social issues continues to grow, so does the importance these customers
place on CSR when choosing where to shop.
6.1 Social Services
The banking services corporation (BSC) subsidiary of the state bank of Pakistan
(SBP) continued its pursuits during FY-12 towards providing good quality and
prompt services to the federal, provincial, and district governments, banking
industry including SBP as well as the common men. For making its service
standards more efficient, BSC undertook a number of new initiatives, aimed at
improving the quality of services, and further enhancing the transparency.
6.2 Training and Education
6.2.1 Training:
Advanced Recruiting Trends offers corporate recruitment teams, third-party
agencies, and individual recruiters a variety of options to access the industrys
most comprehensive and innovative recruitment training available.
6.2.2 Pre-induction training:
The selected candidates will be imparted up to 4 weeks training .
6.2.3 Compensation package:
The selected candidates will be offer appointment for the position. They will
entitle to:
Consolidate monthly monetized salary of Rs 34,000/- in the salary range of Rs
34,000 79,350 Medical facilities for self, dependent spouse and dependent
children only as per banks rules Provident Fund, Gratuity, Leave Fare Assistance,
Staff Loans & other facilities.

Page | 14

6.3 Training and Development Department (T & DD) Of SBP

Training and Development Department (T&DD) is responsible for assessing and
arranging for the training needs of SBP employees. To address the requirements,
training is organized on three tracks, i.e., central banking, function specific, and
management development. The department liaises with reputable domestic and
international institutions for these training needs. Officers received foreign
training also.
A total of 267 officers benefitted from training at prestigious local training
institutions. Under the SBP internship program, 219 interns from within the
country and three interns from foreign institutions were facilitated. T&DD
arranged central banking trainings on important subjects like Operational Risk
Management, Financial Crisis Management-Lessons Learnt, How to Inspect
Quality of Bank Assets, Assessment of Banking Sector Stability, Islamic Housing
Finance, Agricultural Lending Documents, and Risk Management. A Foundation
Training Program for promoted officers Grade-1 was arranged at SBPLRC.

6.3.1 Industrial Training Institute

In-House Training
In-house trainings are designed to lower travel cost, minimize displacement from
work stations, and attract maximum participation. The Department coordinated
with NIBAF to deliver 16 courses for 282 participants, including 4 specially
tailored management development soft skill courses facilitated at SBP LRC.
Education
To develop its human resource for future challenges, scholarships were granted
for higher studies pursued domestically and abroad. Three employees were
enrolled in foreign universities, i.e., 2 at Williams College, USA and one at
Australian National University, Australia while 23 officers were enrolled in
domestic universities in the evening MBA/MS programs during 2009-10.
6.3.2 Domestic Training
For the professional development of its employees and to further enrich their
knowledge base in function specific and management development areas, SBP
facilitates its employees participation in domestic institutional trainings at IBA,
IBP, LUMS, PMI, PIM, and others.
6.3.3 Foreign Training
To participate in training programs on central banking offered by foreign training
institutions, SBP encourages its employees and provide them opportunities.
Officers attended various training courses, workshops, seminars, pertaining to
core & support functions of the SBP. These programs were offered by the IMF,
Federal Reserve Bank of New York, ADB, IDB, BNM, FSA, MAS, Boulder Institute of
Microfinance, AUSTRAC, APRACA, BNM, Toronto Centre, and other prominent
institutions.

Page | 15

6.4 Medical Services

6.4.1 Medical Division

Issuance of confinement letters.

Grant of permission for treatment at offices other than place of duties.

Activation / deactivation of medical facilities of employees/ex-employees and

their dependents.

Issuance of approval letter for treatment/pathological tests etc. from unapproved hospitals/laboratories.

Arrange purchase of high quality medicines against approved indent and ensure
short expiry medicines are replaced on timely basis.

Financial scrutiny and arrange re-imbursement of individual claims in respect of

medical facilities lodged by in service or ex-employees.

To arrange advance in respect of any emergency/costly treatment like cancer,

hepatitis, angiography, angioplasty and CABG etc.

Process the cases of enlistment of hospitals, consultants, laboratories etc.

Payment/Settlement of bills of approved hospitals, consultants, laboratories

according to approved rates.

6.4.2 Health Clinic

Examine the patients and prescribe treatment and medicines as per Medical
Attendance Rules and Regulations.
Issue referral letters, where required, to patients for external
consultants/specialists, pathological tests, diagnosis and hospital admission etc.
Process request for issuance of medicines prescribed by the external
consultants/specialists for treatment to the patients.
Visit different hospitals for ensuring provision of best services by them to the
admitted patients and also looking to the provision of on the spot approval for
any required specialized investigation/treatment/test e.g. MRI, CT scan,
angiography/ angioplasty, chemotherapy etc.
Provide technical advice and recommendations to Medical Division on
determining the fitness or otherwise of the candidates selected for SBP and its
subsidiaries and provide their reports directly to PMD or HR.

Page | 16

CHAPTER # 07
SWOT ANALYSIS
7.1 Strength
Customer Loyalty
When given a choice, customers are loyal to Bank. Instead of targeting all
customers, Bank only needs to target new customers in order to grow their
business."Customer Loyalty has a significant impact, so an analyst should put
more weight into it. "Customer Loyalty will have a long-term positive impact on
the entity, which adds to its value. This statement will have a short-term positive
impact on this entity, which adds to its value.
Technology
Superior technology allows Bank to better meet the needs of their customers in
ways that competitors cant imitate "Technology" has a significant impact, so an
analyst should put more weight into it. "Technology (Bank)" will have a long-term
positive impact on the entity, which adds to its value. These statements will have
a short-term positive impact on this entity, which adds to its value. This
qualitative factor will lead to a decrease in costs. This statement will lead to an
increase in profits for this entity. "Technology" is an easily defendable qualitative
factor, so competing institutions will have a difficult time overcoming it.
Brand Name
A strong brand name is a major strength of Bank. This gives Bank the ability to
charge higher prices for their products because consumers place additional value
in the brand.
7.2 Weaknesses
Customer Service
Weak customer service hurts Banks reputation and causes customers to flee to
competitors, who are more respondent "Customer Service" has a significant
impact, so an analyst should put more weight into it. "Customer Service" will
have a long-term negative impact on this entity, which subtracts from the
entity's value. This statements will have a short-term negative impact on this
entity, which subtracts from its value. This qualitative factor will lead to an
increase in costs. This statement will lead to a decrease in profits. "Customer
Service (Bank)" is an easy qualitative factor to overcome, so the investment will
not have to spend much time trying to overcome this issue.
Weak Management
Weak management increases business risks and reduces profits for Bank,
because they are responsible for the health of the business.
Lack of Scale
Page | 17

A lack of scale means Banks cost per unit of output is very high. Increasing
volume, while maintain quality, would help reduce those costs Lack of Scale"
has a significant impact, so an analyst should put more weight into it. "Lack of
Scale" will have a long-term negative impact on this entity, which subtracts from
the entity's value. This statement will have a short-term negative impact on this
entity, which subtracts from its value. This qualitative factor will lead to an
increase in costs. This statement will lead to a decrease in profits. "Lack of Scale
(Bank)" is an easy qualitative factor to overcome, so the investment will not have
to spend much time trying to overcome this issue.
7.3 Opportunities
Financial Leverage
Leveraging the balance sheet allows Bank to quickly expand into other markets
and products, especially in fragmented industries.
Acquisition Synergies

New Products
New products can help Bank to expand their business and diversity their
customer base."New Products" has a significant impact, so an analyst should put
more weight into it. "New Products" will have a long-term positive impact on the
this entity, which adds to its value.
Online Market
The online market offers Bank the ability to greatly expand their business. Bank
can market to a much wider audience for relatively little expense.
Emerging Markets
Emerging markets are fast growing regions of the world that enable Bank to
quickly expand "Emerging Markets has a significant impact, so an analyst
should put more weight into it. "Emerging Markets" will have a long-term positive
impact on this entity, which adds to its value. This statement will have a shortterm positive impact on this entity, which adds to its value. This qualitative
factor will lead to a decrease in costs. This statement will lead to an increase in
profits for this entity. "Emerging Markets" is an easily defendable qualitative
factor, so competing institutions will have a difficult time overcoming it.
New Markets
New markets allow Bank to expand their business and diversify their portfolio of
products and services.
7.4 Threats

Page | 18

 Volatile Costs
Volatile costs mean Bank has to plan for scenarios where costs skyrocket.
Cautious planning leads to development delays that can negatively affect Bank.
Volatile Revenue
Volatile revenue makes planning difficult, which could delay key investments in
Banks business.
Substitute Products
The availability of substitute products hurts Banks ability to raise prices,
because customers can easily switch to another product or service.

Page | 19

CHAPTER # 08
HUMAN RESOURCE DEPARTMENT
8.1 Structure of Human Resource Department
Figure

Page | 20

8.2 Responsibilities of HR Department

The following three divisions of Human Resource Department team up for
fulfillment of the departments Vision and Mission:
1. Regulations & Compliance
2. Reward Management & HRIS
3. Talent Management

Role and Responsibilities of each division are as follows:

Responsibility of Regulations and Compliance Division:
Disciplinary & Litigation Unit:
Handles employee discipline, initiates disciplinary actions to enforce
organizational standards and discourage infractions. Union affairs, resolution of
conflict, arbitration and conciliation processes.
Absenteeism:
In State Bank an employee can take one leave after 6 days of work. Per year 28
leaves are assigned to the employees quota. If employee is involved in
absenteeism then Disciplinary Approach is used by the supervisors to tackle the
employee.
Conflict Resolution.
Any conflict whether between the Employees and Customers or Employees and
Employees is resolved by the HR professionals in the following manner.
a) Bi literal:
The first step in resolving the Conflict is through simple table talk between two
conflicting parties. If this step results nothing then the second step is used.
b) Conciliation:
The second step in Conflict handling is Conciliation where another person is
taken into account and that listens to both of the parties and after that he tries
by himself so that all the parties could end up getting the best way possible. If
parties again disagree to come up on a point then they go on to the next level.
The important point here is that conciliator takes 15 days to resolve the issues.

Page | 21

Page | 22

c) Arbitration:
If bi literal negotiation and conciliation both gets failed then Arbitration is the
next step. Here again both parties chooses a person to moderate the issue. That
person is called Arbitrator. Arbitrator takes about 30 days to solve the issue. If
the issue is not resolved then the issue is taken to the court.

Misuse of Secret Information/Altering the Information:

Misuse of Secret information is one of the highly concerns of the State Bank. Any
person involved in the misuse of Secret Organization information or Altering the
information for his own negative use is against the policy of the organization and
such activity leads towards the subjected person behind bars.

Equal Employment Opportunities:

State Bank focuses on EEO a lot. Whenever new job opportunities arrive the
quota system is maintained for each and every province of Pakistan. The sub
quota consists of different demographic factors like:
a) Age
b) Gender
c) Different technological backgrounds But there comes some reverse
discrimination when there are some more highly potential workforce is there but
quota is completed. As far as age is concern, it focuses on the experience of the
workforce. State Bank has a mixture of workforce with diversified Ages and
experience levels. In genders, females also have the quota but due to the less
female workforce in the market the quota level is very low for females. But now,
in recent years the quota for females has been increased to almost double. State
Bank is a growing organization and requires employees qualified indifferent
specialized skills like:
a) Information Technology
b) Administration
c) Economics
d) Management
e) Financed,
f) Sociology and a lot more...So there is always a sub quota is maintained for all
above mentioned skills.

Transfer & Posting Unit:

This unit reviews cases of Interdepartmental transfers as per policies and
approvals. Postings of officers in SBP (BSC) other national / international
institutions on deputation There are two types of transfers in State Bank.
a) Short Term Transfers
b) Permanent Transfers
Short Term Transfers:
As State Bank is the growth oriented and talent sharing organization. Therefore it
fills the gaps in the different branches with respect to the men power they like. If
in Karachi branch there are two highly specialized skilled personnels appointed
Page | 23

and in Multan there is also a need of the same highly skilled professional then to
fulfill the organization goals the Administration would temporarily transfer the
person to the Multan Branch to fill the gap in short term.

Page | 24

 Permanent Transfers:
There are different reasons for the permanent transfers. Usually permanent
transfers are made to Retain the employees those are migrating to another city.
Sometimes employees wish to move to better location as there are more growth
opportunities there. But before transferring any employee from one location to
another the Goals of the Organization are ways in mind and the HR is always
consulted in this matter to conduct the need analysis in subjected branch.
Employee Separation Unit:
This Unit process cases related to resignations by employees from the Banks
service and conduct exit interviews of outgoing employees. The case is later on
submitted to higher-up for approval. From the HR perspective there are following
roles of this unit to perform:
a) Retention Decisions
b) Exit Interviews.
Retention Decision:
The responsibility of this unit is to retain the highly skilled employees. This unit
identifies the personnel with highly specialized skills and identifies it to the
Reward Management Division and Internal Monitoring Unit so that it could take
proper actions to retain them.

Exit Interviews:
Exit Interviews are like feedbacks to the organization. It the second most

important step that Employee

Exit Interviews and submit that
that HR could decide whether to stop
not. If organization
it tells the higher
management Division
Unit about the need of
exit interviews also help
the organization.

Separation Unit takes is to conduct the

interview to the main HR Division so
that employee from leaving the job or
needs that employee then
management or Reward
and Internal Monitoring
the person. Sometimes
to change the policies of

Page | 25

 Internal Monitoring Unit:

Carry out audit of cases received from various Divisions of HRD and ensure
compliance of SBP policies and practices. Liaison with internal and external
auditors for smooth execution / completion of audit of HRD also falls under the
scope of this unit. Creation of all the reports and progress of HR Department is
the responsibility of this department.

Business Planning & Budgeting Unit (Strategic HR Unit)

Admin & Co-Ordination Unit (Intra Communication Unit)
Compensation & Benefit Planning Unit
Ongoing Programs for Reward and Employee's Motivation Level
Level 1
- Individual Contribution Award, an informal way of recognition at individual level,
which includes simple Thank you notes / emails / letters
Level 2
Departmental Commitment Award, includes a cash award of Rs. 5,000/-, are
cognition certificate & department wide recognition
Level 3
Organization Competence Award, includes cash award of Rs. 15,000/-, are
cognition certificate & shield and Bank wide recognition
Level 4
Excellence Award, includes cash award of Rs. 30,000/-, a recognition certificate &
shield and Bank wide recognition.

Page | 26

STATE BANK HRIS MODEL:

The HRIS Model clearly shows that in State Bank from workforce planning to
benefit system all the stuff is maintained by the HRMS database. HRMS database
also interacts with the external accounting records and external human resource
research system and Intelligence sub systems to get the external information
and then combines all the internal and external structures to form the complete
HRIS Model.

Figure

Page | 27

8.3 Training and Development

Training has been important aspect of the strategy adopted by the Bank to
enhance quality of human resources. Indeed, continued training and the process
of learning have played a vital role towards successful accomplishment of the
mandated responsibilities in recent times. By providing the members with an
opportunities for acquisition & enhancement of skills, linking the learning process
with results and making learning an inherent part of PMS, we have transformed
training into a requirement and not an option.
The training imparted to employees has been divided into six broad categories,
out of which first five constitute institutional forms of training while the sixth was
more specific department based training.
8.4 Outsourcing
The central bank has decided that any investment portfolio of up to 15 percent of
the equity of the banks, microfinance banks (MFBs) and development finance
institutions (DFIs) would not be considered as core activity for the purpose of
outsourcing arrangements under its guidelines. It may be pointed out that the
State Banks guidelines on outsourcing arrangements prohibit banks, DFIs and
MFBs from outsourcing certain core activities, functions and processes that
require effective involvement of the Board of Directors and the senior
management on a continuous basis.
Under the SBP guidelines, the banks and microfinance banks and development
finance institutions are not allowed to outsource their core activities, functions
and processes such as risk management function, internal audit function,
treasury function, internal control function, compliance function and decisionmaking including determining compliance with Know Your Customer (KYC)
requirements for opening deposit accounts and credit functions.
8.5 Employee Relations (CBA Afairs)
SBPs management and CBA enjoyed good cordial relations with each other
throughout this fiscal year.

Page | 28

ECRUITMENT & SELECTION

9.1 RECRUITMENT AT SBP:
(ENSURING COMPETITION, MERIT AND TRANSPARENCY)
It refers to the process of attracting, screening, selecting, and on boarding a
qualified person for a job. In the perspective of managements philosophy
regarding acquisition of talent, recruitment activity was concentrated at the
entry level positions. This approach being in line with strategic needs of the Bank
was undertaken to hire skilled human resource. This approach also serves as a
progressive career path for our workforce through mechanisms such as career
development and succession planning.
Selection of the right people for the job is the first step towards developing an
efficient institution. Great stress has therefore been laid on ensuring that the
recruitment process at the State Bank is highly competitive, transparent and
merit based. As a result of this conscious policy, we have been able to attract
some of the top talent in the country in the fields of Economics, Finance,
Business administration, IT, Accounts and Audit as well as Statistics. As an Equal
Opportunity Employer we consciously seek diversity in terms of education,
geographical representation and gender and have actively encouraged women to
apply for positions at the State Bank. As one of the largest employers of
professionals in the country, with intake of more than 70
fresh graduates at entry level positions and frequent
recruitment at senior levels, we have successfully developed
a system that is unblemished by nepotism, subjectivity and
political interference, All recruitment is through open
advertisement and follows a well-drawn out procedure
involving thorough scrutiny of all applications according to
clearly specified criteria, written tests developed and
administered by external experts and interviews by a panel that has
representation from our Board of Directors as well as private sector specialists in
the relevant field. This commitment to quality and merit will continue in our
recruitment and other managerial actions.

9.2 ELIGIBILITY CRITERIA FOR SELECTION

QUALIFICATION:
Masters Degree or 16 years of education (with at least 60% marks where
percentage system applies, or, minimum 3.00 CGPA where GPA system applies)
in Business/ Public Administration, Business Economics, Economics, Statistics,
Commerce, Mathematics, Computer Science/ I.T from HEC recognized university
AGE:
Maximum 28 years as on the last date of submission of applications to SBP-BSC.
DEGREE COMPLETION

Page | 29

Candidates awaiting final result are not eligible to apply. Candidates should have
fully completed all requirements of degree and must attached copy of Provisional
Certificate, Mark sheet/ Transcript.
WRITTEN TEST:
The candidate meeting the above eligibility criteria are required to register
themselves with NATIONAL TESTING SERVICE (NTS) for appearing in the written
test.
SELECTION PROCEDURE:
Eligible candidates will be required to take a comprehensive written test in
English Composition, Quantitative Skills and Current Affairs/ Intelligence/ General
Knowledge. Candidates who qualify the written test will be invited to appear for
Group Discussion. Only the candidates who qualify the Group Discussion phase
would be eligible to appear before an interview panel on same date.
Selection will depend on marks obtained in written test, Group Discussion and
interview(s). Successful candidates will be selected in order of merit, as Assistant
Direct (OG -2) in State Bank of Pakistan, Karachi. All appointments in State Bank
of Pakistan are made in compliance with prescribed regional/ Provincial Quota
requirement. The candidates short listed on the basis of merit of written test and
available number of vacancies will be invited for interview before a selection
board at SBP-BSC
PRE-INDUCTION TRAINING:
The selected candidates will be imparted up to 4 weeks training

COMPENSATION PACKAGE:
The selected candidates will be offer appointment for the position. They will
entitle to:
Consolidate monthly monetized salary of Rs 34,000/- in the salary range of
Rs 34,000 79,350
Medical facility for self, dependent spouse and dependent children only as
per banks rule
Provident Fund, Gratuity, Leave Fare Assistance, Staff Loans & other
facilities as per banks rules
APPLICATION PROCEDURE:
After the announcement of written test result by NTS. The application forms will
be available online at www.sbp.org.pk/jobs/. Printed copies are available on all
offices of SBP-BSC across the country. Application sent via e-mail will not be
entertained.
9.3 RECRUITMENT

Page | 30

MBA
MA(ECO)
MPA
M. COM
CA ETC.
WITH
7 YEARS
EXPERIENCE
OR
SPECIFIED
QUALIFICATION/
EXPERIENCE

WRITTEN TEST

INTERVIEW

8-10
WEEKS
OFFICIAL
TRAINING
AT
NIBAF

DEPARTMENTAL
POSTING

APPOINTMENT

Recruitment Challenges
Due to their professional competence and experience gained at the Bank, SBP
officers are in great demand in the financial sector and this poses a phenomenal
challenge to HRD in acquiring, motivating and retaining professionals at the SBP.
Similarly, due to the excellent knowledge base, the SBP employees have secured
various competitive scholarships for higher studies abroad offered by HEC,
British Council and other international institutions.
With regard to the fresh appointment, the recruitment for two SBOTS batches
was dropped because the candidates did not meet the required standard which
hampered the inflow of young officers at the entry level. However, after the
restructuring of the Bank in September last year, a lot of specialized positions
were identified and it was a challenge for HRD to fill these specialized positions
on urgent basis, which was met effectively.

Page | 31

Page | 32

PAY, INCENTIVES AND PENALTY

10.1 GENERAL SALARY STRUCTURE (Officer Cadre)
salary Grade
Minimum (PKR)
Maximum (PKR)
OG 7
58,500
135,300
OG 6
43,400
109,300
OG 5
40,200
103,000
OG 4
36,500
95,000
OG 3
30,000
83,000
OG 2
25,000
67,500
OG 1
16,481
47,850
(Support Staf Cadre)
Salary Grade
Minimum (PKR)
Maximum (PKR)
S 7
14,400
37,400
S 6
13,838
34,500
S 5
11,903
31,600
S 4
10,733
29,000
S 3
9,675
24,500
S 2
8,573
20,300
S 1
8,100
18,700
(Specialized Salary Structure)
Level
Minimum (PKR)
Maximum (PKR)
Entry
40,000
80,000
Middle
60,000
120,000
Higher
80,000
150,000
Managerial
M-1or M

Page | 33

10.2 Compensation and benefits provided

Base Pay
Overtime Pay
Travel/Meal/Housing Allowance
Benefits including: dental, insurance, medical, vacation, leaves,
retirement.
Staff Loan Policy
Facility Of Banks Car & Petrol Ceiling
Medical Facilities
Telephone Charges At Residence
Facility Of Newspapers & Journal
Family Pension

LEAVE ENTITLEMENT
SBP is providing a various benefits to their employees such as leave benefits and
advances. In leave benefits every employee has two leave accounts: RLA & SLA.
Employee cannot obtain only medical or sick leave , they have various reasons of
leave such as attend party, attend seminar, outstation leave, domestic problems,
R & R leave etc.
Employee can avail leave facility for perform of Hajj.
SBP also provide Rest and recreation 15 days leave to their employees. R and R
leave avail once in a year. In SBP female employees is also availing female leave
facility maternity and iddat leave. Maternity leave can avail thrice during whole
period of job.
SBP made proper process of leave application to facilitate to their employees.
After retirement/ resignation/death net qualifying service form is very important
for calculation of Net Qualifying Service and case forwarded to internal
monitoring unit for their In order Certificate.
ADVANCES:
SBP has designed a dynamic and flexible compensation and benefits program
and has adopted the philosophy of Total Remuneration (TR) for its employees.
One important part of TR is Loans & Advances which are allowed to its
employees to facilitate and overcome, primarily the accommodation problem.
While facilitating the employees, SBP also takes appropriate measures to
safeguard its interest and accordingly various checks & balances are put in place
to achieve this objective. The types of loans/Advances provided to employee are
as follow

Page | 34

Personal Loan
Staff Loans
Motor Car Loan
Motor Cycle Loan
House Building Loan
Personal Computer & Printer Loan

REWARDING/RECOGNIZING EMPLOYEES AT SBP:

Recognizing the importance of employee recognition and reward as a tool to
motivate employee as well as to inculcate a positive, productive and innovative
organizational culture, State Bank of Pakistan has introduced an on-going
program for Employee Recognition and Reward. This program is aimed at
fostering a culture of acknowledgement and appreciation amongst employees for
introducing innovative business practices, showing extra ordinary efforts for
achievement of goals and enhancing Banks corporate image. Using various
methods of recognition ranging from simple Thank you letters to elaborate
celebrations and monetary rewards, we endeavor to motivate employees,
encourage optimum performance and instill professional commitment and loyalty
throughout the Bank.
Formally, the Employee Recognition Policy and Program encompasses four types
of recognition levels, based on the achievement of the individuals/teams. These
are:

Level 1 - Individual Contribution Award, an informal way of recognition at

individual level, which includes simple Thank you notes / emails / letters
Level 2- Departmental Commitment Award, includes a cash award of Rs.
5,000/-, a recognition certificate & department wide recognition
Level 3- Organization Competence Award, includes cash award of Rs.
15,000/-, a recognition certificate & shield and Bank wide recognition
Level 4- Excellence Award, includes cash award of Rs. 30,000/-, a
recognition certificate & shield and Bank wide recognition

Page | 35

In order to effectively realize the benefits of this highly beneficial program, all
employees in general and particularly departmental and divisional are
encouraged to recognize employees who through their effort promote
organizational values or are high achievers on an ongoing basis to create an
environment of mutual support and respect. By adopting the practice of
recognizing and recommending each others positive behaviors for reward we
will develop and achieve an organization wide culture of mutual trust and
appreciation which will contribute towards making SBP a better place to work
with highly motivated employees proud of their association with the
organization.

Page | 36

Retirement
i.
Availability of Funds/Sanction of Limits to Banks/DFIs
Under LTFF Scheme, SME Finance Department, SBP will sanction yearly limits in
favor banks/DFIs. Applications for sanction of limits for each fiscal year
(July-June basis) shall be sent by the interested PFIs to the Director, SME
Finance Department, SBP latest by 15th May each year to facilitate sanction of
annual limits at the earliest. State Bank will review the utilization of limits by
individual PFI on quarterly basis and may cancel the unutilized limit for
reallocation to other PFIs.
Under other long term financing Schemes, financing shall be provided by the
banks/DFIs on first come first served basis within the overall amount
earmarked for the purpose. While adequate funds have been earmarked for the
Schemes the banks/DFIs shall, however, be required to approach SME
Finance Department, State Bank of Pakistan, after their internal approval
of financing to each unit/project for confirming the availability of funds.
State Bank will respond to the concerned bank/DFI with a copy to the
concerned office of the SBP BSC (Bank) from where it will avail refinance.
In case banks/DFIs have not disbursed 1st installment / opened LC / made
firm contract with down payment, the confirmation / approval of
availability of funds from SBP should lapse within a period of three months.
ii.
Grant of Refinance
The State Bank shall provide refinance to each bank/DFI on service
charge (mark-up) basis in terms of Section 17 (2) (d) read with section
22 of State Bank of Pakistan Act 1956. Refinance shall be allowed to the
Banks/DFIs by the concerned offices of SBP BSC (Bank) on submission of
following documents:
iii.
Repayment Of The Loans
Principal amount of loans shall be repayable in equal quarterly / half
yearly installments after prescribed grace period, if any. If a borrower will repay
the loan amount or its installment, in part or in full, before the due date(s), the
banks/DFIs shall be under obligation to repay the amount(s) so received within
three working days to the concerned office of SBP-BSC (Bank) failing which
fine for late adjustment of loan will be recovered from the concerned bank/DFI, at
the rate specified by the State Bank.

Page | 37

The refinance granted by SBP-BSC offices to the Banks/DFIs shall be recovered

on the due dates as reported in the original repayment schedule from the
account of the banks/DFIs maintained with the respective office of the SBP
BSC (Bank).
In case the borrowers fail to make repayment of the amount of installment as
per the original repayment schedule, the bank/DFI will be entitled to charge
normal rate of mark up on such overdue principal amount besides taking
other actions to recover the same as are incidental to such defaults. In
no case the liability of banks/DFIs to pay/repay to SBP BSC the principal amount
of refinance, or mark up or any other charges or penalty thereon shall be
dependent upon the recovery from the borrower nor shall such liability be
affected by any default on the part of the borrower. Mark-up shall be paid on
quarterly basis.
iv.
General Terms & Conditions
a) Financing under the Scheme shall be subject to compliance with all rules
and regulations including Prudential Regulations for each type of
borrowers.
b) Financing shall be available to the extent of the C&F value and exfactory/showroom price of the new imported and locally manufactured
plant & machinery respectively.
c) Advance payment shall be eligible to the extent of 20% of the C&F value /
ex- factory /showroom price of plant & machinery.
d) Disbursements by PFIs should not be made to the borrower directly;
instead payments shall be made to the manufacturers / suppliers of
plant & machinery as per payment/delivery schedule agreed to
between the manufacturer and the purchaser.
e) PFIs shall consider financing based on the debt to equity
requirements as prescribed in applicable Prudential Regulations for each
type of the borrower.
f) The financing PFI may, however, ask for higher contribution of
equity from the borrowers keeping in view individual risk profile.
g) Financing banks/DFIs shall ensure fulfillment of requisite predisbursement formalities by the borrower through due diligence as
per their own internal arrangements to avoid malpractices and missutilization of facilities.

Page | 38

h) There will be no maximum limit for borrowing by the prospective

entrepreneurs. However, in case of larger financing requirements, i.e. over
Rs 300 million under LTFF Scheme & Rs 500 million under Power Plants
Scheme, banks / DFIs are encouraged to provide finance under
consortium arrangements.
i) In case of consortium financing, the payment to the importer /
supplier of plant & machinery shall be made by the leader of the
consortium, who shall therefore, be under obligation to certify the share
of each member bank/DFI and the amount disbursed by it, to enable the
consortium members to avail refinance from State Bank to the extent
of their share subsequent to the actual payment made by the
consortium leader.
j) Banks/DFIs shall make necessary arrangements to ensure that the amount
of
k) refinance availed by them from State Bank and outstanding as on the date
of preparation of their financial statements is shown separately in
Annual Audited Accounts, under appropriate heads, their claims
(principal amounts only) against their constituent to whom the financial
facilities were sanctioned by them.
l) State Bank shall have the right to appoint independent consultants to
verify the use of the refinance facilities. In case the report of the
consultant points out irregularity on the part of the financing bank/DFI or
the borrower, State Bank reserves the right to recover the amount of
refinance granted to the bank/DFI along-with fine at the prescribed
rates including the cost of such verification.
m) In case of the import of plant and machinery, the foreign currency
required for making payment to the machinery manufacturer or the
suppliers abroad, against LC, shall be purchased by the bank/ DFI of
the borrower from the inter-bank market at prevailing rates. The
quantum of the loan amount in equivalent Pak rupees shall be
determined on the basis of the rupees resources required for purchase
of the foreign currency on the actual date of retirement of LC and shall be
released in accordance with the payment terms. Banks/DFIs shall evaluate
applications for financing, within two/three months (as prescribed under
each Scheme) from the date of receipt of complete information from
the borrower. Where the request is declined, the bank/DFI will explicitly
apprise the reasons for rejecting the application to the prospective
borrower.

Page | 39

n) Refinance shall be provided on the basis of certification by the Internal

Audit of the financing bank/DFI with regard to confirmation that the loan is
within the terms and conditions laid down in the Schemes. A copy
of the said Internal Audit Certificate shall also be submitted to the
concerned office of SBP BSC at the time of availing the refinance facility.
o) Second-hand machinery shall not be eligible under the Schemes.
p) Financing shall not be available for the purpose of acquisition of
land, construction of building etc.
q) Financing shall be checked/verified by SBPs Banking Inspection
Department (BID) during inspection of the banks/DFIs to ensure that the
same have been allowed as per the terms and conditions of the Schemes.
r) Where a bank/DFI considers the requests of their borrowers for
rescheduling of loans granted under the Schemes the principal
amount of refinance shall only be rescheduled in a way that total tenor
of refinancing does not exceed maximum period prescribed under each
Scheme from the date of original disbursement made by the
banks/DFIs. Further, the borrower shall be liable to make payment of
mark-up at the rate applicable on the date of such rescheduling, or
the original rate whichever is higher.
11.1 Pension Section:
Payment of monthly pension is ensured for employee/family pensioners.
Normal Retirement:
When employee will retire after 60year he will obtain following benefits. 50% of
GPF, 50% will be restored and will be paid at the age of 75 years. He is provided
option to take Medical encashment in lump sum or 10 times of monetized salary.
If he wants to avail gratuity then he will be paid in following way
Gratuity = Years of service X Monetized salary
Early Retirement (above 55 years and below 60 years)
50% of GPF and 50% will be restored and paid at the age of 75 years.
Employee has the option to either retain medical facility or avail medical
encashment.
He will avail leave encashment facility 730 days.
Termination of Services at Employee Option:
50% of GPF and 50% will be restored and paid at the age of 75 year.

Page | 40

 Leaves encashment is provided for 730 days(730* monetized Salary/30)

Medical encashment must be availed which is 10 monetized salary.
He can avail BF Rs.4000 mass per month 15 years. He has option to get it
lump sum or monthly basis
Medical facility is not provided.
Family Pension:
If employee dies after retirement then his/her dependents either daughter or son
Dependent:
Dependent will be the following persons
Wife of employee
The eldest child of employee either daughter or son.
Pension for wife is BF along with pension but boy and girl will only get
pension
Age Limit:
Son can get pension till the age of 21 but daughter can get till marriage.
Wife can get the of pension along with BF, but wife has died then eldest
child will get of pension without BF.
When one child has passed the age of 21 years in case of boy and married
in case of girl then the next eldest child will get the pension and so on.
If the person has two wives the 50% will be given in each of them. If wife
re-marries then she will not be entitled to get pension.

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INTERNSHIP PROGRAM AT SBP

As one of its corporate responsibilities, State Bank of Pakistan every year offers
three internship programs to the top students of recognized universities
throughout Pakistan. During FY08 132 students of various institutes attended
these Internship Programs.
12.1 Procedure of Conducting Internship Program
Internship Program: SBP provides a targeted internship program for University
students from all over Pakistan for 8 weeks each summer. The Internship
Program at SBP has been revamped to make it a more dynamic and useful
activity in the light of feedback received from the Internees. The program is
divided into two phases: an overview of the functions, roles and services
performed by the State Bank of Pakistan through a combination of briefings in all
the departments over a two week period; and a project-based, intensive
experience in specific departments for six weeks. To achieve greater diversity in
terms of gender, geographical and professional backgrounds, 50% of the
internees selected are females and a purposeful approach has been adopted
toward seeking out candidates from the rural Sindh and Baluchistan. This
year128 applicants were found eligible out of which 60 students (30 female & 30
male) were selected for internship.
12.2 Advantages from Internship Program
A similar program was also initiated for Probationers belonging to the District
Management Group, although the duration for this short attachment with the
State Bank of Pakistan was for a fortnight. In the coming year, this arrangement
with the Civil Services Academy will be enhanced by way of a longer internship
program. Besides, separate training internship program for students from IBA
was also conducted to provide them an opportunity of gaining knowledge in the
field of central banking.

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PERFORMANCE MANAGEMENT SYESTEM OF SBP

There was a general feeling among the staff that the system of performance
evaluation prevailing at the SBP was subjective and did not provide opportunities for
improvement and development of the staff. It was therefore felt necessary to
introduce new Performance Management System aimed at correcting the
deficiencies of the existing system.
The present shape of PMS emerged after extensive consultation and feedback
received from the staff. The process started with pre-pilot run and then preceded
with focus group presentations, pilot-run, review committees, HR consultants,
training workshops, presentations to HODs & CMT and post implementation
modifications based on stakeholders feedback. The aim of modifications &
refinements was to make the system more effective, user friendly and acceptable in
the light of the local culture & environment. The Competency Model for SBP was
considered to be an essential part of PMS. This Model catered for identification &
development of necessary behavioral attributes envisaged for human capital. The
development of technical skills as well as behavioral competencies was necessary
to enhance capacity of human capital at the Bank.
However, some aspects of the program were deferred during the first year for the
sake of smooth implementation. For evaluation purposes, a total of thirty-one
behavioral competencies have been identified. From these competencies, a matrix
of 12 to 14 competencies has been developed for each Department, depending
upon the nature of its functions. In each competency matrix, there are six Core
competencies which apply across the board; five competencies are grade specific
while the remaining competencies are functioning specific. The individual
departments can customize these matrices by adjusting the levels and relative
weights of each identified competency according to the hierarchical levels and
nature of assignments. Like any other developmental product, up dates were
incorporated as the model was put into action and feedbacks received during the
initial process of implementation. The level-wise selected competencies have been
clearly described in the Competency Dictionary in the form of observable behaviors
to create understanding of terminologies & ensure consistency

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The initial version of Competency Dictionary was revised after taking into account
recommendations of the task force established for its review. Additional
enhancements in the Competency Model have been undertaken to further
customize it while using SBP workplace behavioral examples.
PHASES OF PMS IN SBP
In SBP, performance management system phases comprises of five phases which
are explained below:
PERFOMANCE PLANNING PHASE
This phase involves goal setting and competency setting which is listed in Form-1.
These goals and competencies are set by a mutual agreement between the
appraise and appraiser. The goals are picked from the approved Annual
Departmental Business Plan. In case of competencies, there are three types of core
competencies (mandatory for all), role specific and function specific competencies.
The grand total of the goals should be equal to 100. Next training needs are
identified in consultation with the appraiser. The appraise is your immediate boss
and the reviewer will be the person next in the hierarchy. For example, for OG-2,
OG-3 or OG-4 the Appraiser is Divisional Head and the Reviewer is HOD/Director.
The form is then sending to the appraiser then he sends it to HRD or send back to
appraise for rework.

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13.1 PERFOMANCE MANAGING PHASE:

The role of appraiser, reviewer and appraise is very important in PMS. The
appraiser and reviewer should guide them and give them feedback of their
performance on regular basis. Career development is the responsibility of
employee. He should ask for the feedback on completion of the task. It is highly
recommended for appraises and appraisers both to make use of STAR Form
(attached) to record accomplishments/ critical events throughout the year and use it
at the time of appraisal. STAR stands for situation, actions and results. In case of
transfer, deputation and promotions Form-1 is revised again in consultation with
new supervisor. As far as leaves are concerned, Appraise, Appraiser and Reviewer
are all advised to avoid absences from work and schedule their leaves and official
assignments accordingly enabling us to finalize the PMS Appraisal Phase and
subsequent AMI process well in time. If the leaves cannot be rescheduled then
concerned Appraises, Appraisers, and Reviewers are requested to finalize Appraisal
process for that particular employee beforehand, even before the timeline.
13.2 PERFORMANCE REVIEW PHASE:
In this phase what the employee actually did is recorded in the Form-II. Actual
achievements are written against goals and behavioral examples against
competencies. Following this, an appraisal interview is conducted and the ratings of
goals and competencies are finalized.
Appraiser and Reviewer will evaluate the performance of the appraise on the same
form. The appraise is required to submit Form-II to his/her appraiser, who after the
appraisal interview, will award rating to each goal and competency and record
his/her comments.
There are 5 rating levels for goals (outstanding, commendable, competent, marginal
and unsatisfactorily) and 5 levels for competencies (always effective, usually
effective, occasionally effective, rarely effective, never effective). Separate spaces
are available for both appraise and appraiser as a comment box in Form-II for any
comments.

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PERFORMANCE REWARD PHASE

Annual Merit Increase (AMI) is given to employees up to OG-7. Employees OG-1 and
below are evaluated and awarded AMI on a different scale. To be eligible for AMI an
employee must at least perform 3 months of satisfactory service.
Bell curve cluster technique is applied to decide the AMI. There are
four bell curve categories A, B+, B, C. Top 15%, Next 25%, next 50% and last 10%
fall in each category respectively. Bell curve is also used for promotion and other HR
processes.
APPEALS COMMITTEE:
If an employee is not satisfied with his rating he/she can file an appeal with PMS
appeal committee. HRD shall inform you about the date and time of your appeal
interview where you can discuss your grievances with the panel members of appeal
committee.
EFFECTIVE PERFORMANCE MANAGEMENT SYSTEM
Any effective performance management system includes the following components:
Performance Planning:
Performance planning is the first crucial component of any performance
management process which forms the basis of performance appraisals. Performance
planning is jointly done by the appraise and also the reviewer in the beginning of a
performance session. During this period, the employees decide upon the targets
and the key performance areas which can be performed over a year within the
performance budget, which is finalized after a mutual agreement between the
reporting officer and the employee.
Performance Appraisal and Reviewing:
The appraisals are normally performed twice in a year in an organization in the
form of mid reviews and annual reviews which is held in the end of the financial
year. In this process, the appraise first offers the self-filled up ratings in the selfappraisal form and also describes his/her achievements over a period of time in
quantifiable terms. After the self-appraisal, the final ratings are provided by the
appraiser for the quantifiable and measurable achievements of the employee being
appraised. The entire process of review seeks an active participation of both the
employee and the appraiser for analyzing the causes of loopholes in the
performance and how it can be overcome. This has been discussed in the
performance feedback section.
Feedback on the Performance followed by personal counseling and performance
facilitation

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Feedback and counseling is given a lot of importance in the performance

management process. This is the stage in which the employee acquires awareness
from the appraiser about the areas of improvements and also information on
whether the employee is contributing the expected levels of performance or not.
The employee receives an open and a very transparent feedback and along with
this the training and development needs of the employee is also identified. The
appraiser adopts all the possible steps to ensure that the employee meets the
expected outcomes for an organization through effective personal counseling and
guidance, mentoring and representing the employee in training programs which
develop the competencies and improve the overall productivity.
Rewarding good performance
This is a very vital component as it will determine the work motivation of an
employee. During this stage, an employee is publicly recognized for good
performance and is rewarded. This stage is very sensitive for an employee as this
may have a direct influence on the self esteem and achievement orientation. Any
contributions duly recognized by an organization helps an employee in coping up
with the failures successfully and satisfies the need for affection.

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Performance Improvement Plans

In this stage, fresh set of goals are established for an employee and new deadline is
provided for accomplishing those objectives. The employee is clearly communicated
about the areas in which the employee is expected to improve and a stipulated
deadline is also assigned within which the employee must show this improvement.
This plan is jointly developed by the appraise and the appraiser and is mutually
approved.
Potential Appraisal
Potential appraisal forms a basis for both lateral and vertical movement of
employees. By implementing competency mapping and various assessment
techniques, potential appraisal is performed. Potential appraisal provides crucial
inputs for succession planning and job rotation.

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CONCULSION:
State bank of bank have excellent human resource management system for their
employees for their motivation and satisfaction. Best policies attract and retain the
best employees. Human resource management is the most pivotal element
affecting an organizations overall performance. It is directly related to employees
commitment with the organization and leading organizations always use it as a tool
to attract and retain the most talented human resource capital.

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APPENDIX A:

QUESTIONNNAIRE

Question: What is your recruitment procedure?

Answer: Mostly we used to do external recruitment. The procedure is quite
transparent and we provide equal employment opportunity based on NTS and other
test and only applicable team of candidates are selected for interview.

Question: What about your internal recruitment?

Answer: We used to do internal recruitment but very rarely. But if then we ask
employees about their references and through any mean of communication from
employee.

Question: What type of interview you conduct in selection?

Answer: In interview selection only the cream is appeared but these interviews and
test only happen when there is a vacancy of job or a seat is available.

Question: What is your promotion criterion?

Answer: As its a government Organization, so the promotion rate is slow and is
quite tough plus promotion is only possible if a seat is available.
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Question: What is your salary compensation procedure?

Answer: We used to have a third party survey through which we schedule the
compensation.

Question: What is your employee reward and reorganization criteria and

what rewards the employees get?
Answer: The rewarding is based on the year rating. We offer increments, certificates
and cash prizes.

Question: What tools you use to measure the degree of dissatisfaction

from employee?
Answer: Through survey but as it is a Government organization so the surveys is
lesser as compare to other organization but it often held after 2 to 3 years. This
survey is completely online and doesnt require long explanation.
Question: Is the dissatisfaction survey useful. If then what are the
benefits?
Answer: Yes, it is pretty useful. We came to know about our weakness and policies
which bother them the most.

Question: How you reduce the dissatisfaction of employees?

Answer: We changes the career opportunity plans.
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Question: What type of recreational activities SBP do for their employees?

Answer: There is a gym here which is pretty useful in a sense that it is healthy,
recreational and most importantly it is on the job place. They offer lunches on
regular basis, we have our own Hut on Hawks bay we have an annual picnic, Sports
activities also held annually.

Question: If employee surplus is cause what do you do?

Answer: We offer early retirement to those who are near to their retirement mainly
(55 to 59) with their full pay till retirement. A program was also started almost 10
years back when surplus was cause we offer many people incentives in exchange of
their seats. This program had a positive response from employees.

Question: What do you do for employee motivation?

Answer: We make them understand their career goals and plans and offer them
certificates etc after achieving their goals.

Question: Is policies more important than an employee for an

organization?
Answer: No, not at all but as its a government organization so the policies are quite
strict and straight forward.

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Question: What is HRIS or HRMS?

Answer: It is a management of HR which IT professionals do through management
systems. In Human resource management system the records of employees from
recruitment to retirement is stored.

So overall, Human Resource Management System is excellent in SBP. It is

the most dynamic and progressive public sector organization of the
country and is playing a vital role in the economic revival, growth and
development of Pakistan.

REFERENCES

State Bank of Pakistan - The Central Bank

HumanResources.pdf

State Bank of Pakistan - The Central Bank - Exchange and Debt Management
Department

CompleteReport.pdf

Internship Report on Departments of State Bank of Pakistan

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