1

FOREIGN EXCHANGE DEPARTMENT: The term "foreign Exchange", this states that "foreign currency includes all deposits credit and balance payable in any foreign currency and any drafts, traveler's cheques, latter's of credit and bill of exchange, expressed or drawn in Pakistani currency but payable in any foreign currency. Foreign exchange is related to the exchange methods and mechanism through which payments in connection with international trade or made. It covers the method by which: The currency of one country is exchange for that another. The ratio at which they are affected IMPORT AND EXPORT SECTION. Imports and exports are allowed only on later of credit account. For import and export, the party will have to pay the cast and freight charges. The documents that required for import or export for getting later of credit are: FINANCIAL DOCUMENTS. Financial documents will show soundness of the party. COMMERCIAL DOCUMENTS. Commercial documents are showing correspondents of two parties. TRANSPORTING DOCUMENTS. Transporting documents show the media of transport with the related documents, i.e. bill of exchange.

3.5

FOREIGN EXCHANGE REMITTANCE SECTION.

Transaction should be made through demand draft or transfer. There are some instructions imposed by state bank of Pakistan in foreign exchange remittance. The sender cannot transfer the amount more than required by the receiving party in foreign, the party, which is residing in foreign country will held the demand notices or invoice. Transferring the amount for purposes most not exceed the required amount. No such restriction is employed on foreign currency account holders. Bank charges are applicable as per SOC, which is issued time to time. BUYING AND SELLING EXCHANGE RATES The difference b/w buying and selling rate depends upon the position of the money market. A baying rate is a price at which a bank will buy a unit of foreign currency while a selling rate is the price at which a bank sells unit of foreign currency.- The difference b/w the two rates is the gross prophet margin on which the banks under take the business of foreign exchange. State bank of Pakistan, has now given in authority to KASB bank limited, to issue exchange rates sheets by its foreign and treasury department.

CHAPTER NO.4 ADVANCES

4 4.1 ADVANCES Banks advances search longing facilities, which are allowed by the commercial banks to all sectors of economy in both public and private sector. Advances are the process through which money is pleased in hands of traders and businessmen as known as bankers advances. It simply means the loans of money granted by the bank to the business community. KASB bank is governing authority of 'dance to all schedule banks. A rate of interest is limited. In profit there is not limitation. TYPES OF ADVANCES PERSONAL FINANCE. Education Finance Karobar Finance Ghar finance.

4.1.1 PERSONAL FINANCE. KASB Cash Asaan Personal Finance (CAPF) is a term Finance loan based on amortization concept with fixed monthly installments Scheme is a personal loan for salaried individuals & Businessman to meat expenses .Finance Up to Rs.1, 000,000/- with the LOW MAKE-UP RATE. ELIGIBILITY: Employees of reputable legal entities and self-employed or businessperson.

4.1.2 GHAR FINANCE. KASB bank provides the Ghar Finance scheme. Ghar Asaan is a premium financing product against equitable / registered mortgage. It maximizes your purchasing power and gives you flexibility when availing home financing. We will process your

5 application in the shortest possible time so that you can avail any of the following products: Buy a Home Build a Home Home Renovation

Buy your Home With Ghar Asaan Buy your Home, you can purchase a ready-made property, with LTV upto 80%. Build your Home We acknowledge individual differences. Construct a house of your choice, According to your needs on a piece of land either already owned or want to acquire through our financing (i.e. upto 50% of cost of land) . A maximum of 70% LTV can be availed in Build your Home cases. Home Renovation Whether it is expansion or alteration, Better your Home allows you to give a fresh look to your home, with upto 70% LTV upto 10 million. Features: Home Loans ranging from 3 lac to Rs. 2 crore so that you can either buy, build or renovate your house. Highest Loan amount, financing up to 80%. Loan tenor ranging from 3 to 20 years. Affordable monthly installments. Income clubbing with blood relations. Low prepayment penalty. No prepayment after 3 years relationship. Offering minimum income of Rs. 15,000 per month as Compared to other banks. Balloon Payment option twice a year @ Rs. 50K or 5% or original finance amount. Property insurance and Life Mortgage insurance from banks approved insurance company. Consolidate all your existing debts through Home Debt Consolidation at reasonably less mark up. The overall processing time is 4 weeks (approx.) Low Markup Rate

ELIGIBILITY Employees of repeatable legal entities and self-employed or businessperson on Monthly repayment installments to be not more than 40% of take home salary/declared income.

4.1.3 Education Finance Education Asaan: Education Asaan is a customized convenience product for both Educational Institutions and its customers. It is designed to eliminate late fee payments, resulting in improved cash flows, effective administration and at the same time provides the Educational Institution with the tool to enhance its relationship with parents. Simultaneously, the product offers a credit line to the parents facilitating them in times of financial crunch and enabling them to make Educational Institution fee payments in a hassle free & timely manner. General eligibility criteria Credit limit will be given amounting to one years standard fees. In cases, where a customer requests for any specified lower limits, the same may be approved & allocated. Credit limit can be enhanced based on completion of 6 months relationship/credit history review of the customer. The cumulative limit extended per parent should not exceed PKR 500,000 otherwise deviation would be required & Low markup rates.

7 ELIGIBILITY All reputed school, colleges and universities located in the designated cities of Pakistan. Applicant should be self-employed or salaried. Parents can apply for their children. Students who are self-employed or salaried can avail this facility. Minimum Age Limit (Principal Applicant) Minimum Age:21 Years Maximum Age:65 Years

4.2 KAROBAR FUNANCE Karobar Asan:A business finance product; aimed at facilitating its customers to fulfill their business working capital needs; secured against residential/commercial property; for business individuals earning minimum PKR 35,000/month; with loan/line amounts starting from PKR 1,000,000. General Features: Loan Amounts upto PKR 75 million Term Finance and Running Finance facility Loan Tenors ranging from 3 years to 20 years Affordable Monthly Installments Co-Borrower option with immediate blood relatives Property Mortgage of residential, semi-commercial, commercial properties Property Insurance Balance Transfer Facility Dual Collateral option Loan/Line Enhancement option after 1-year relationship TAT: 4-weeks (approx.) Markup 6-month KIBOR + 500 basis points 6-month KIBOR + 450 basis points

and

Loan/Line Amount Below PKR 20 mn Above PKR 20 mn

8 BTF/GF cases 1% rate rebate

Karobar Asan Process Flow

Customer contacts the Branch and shows interest in the product

Branch compiles an MIS

Daily before 4:00 pm

Branch forwards the MIS to Product Management

Next working day before end of first half

South

Central

North

Figure: Lead Forwarding Process

CHAPTER NO.5 KASB BANK FUNDS

10

5.1

KASB FUNDS LTD.

KASB Funds Limited (KFL) is in the business of providing investment and savings solutions to its investors through a range of investment products. KASB Funds serves a large and diversified investor base with its investment products, ranging from retail investors to high net worth individual and from pension funds, employee benefit funds to corporations and institutions. KASB Funds also provides investment advisory services to a host of clients. KASB Funds' institutional sponsors are KASB Bank and Black Rock Inc. (Black Rock). Black Rock is a premier provider of global investment management, risk management and advisory services to institutional and retail clients around the world. As of June 30, 2009, Black Rock's assets under management were $1.37 trillion across equity, fixed income, cash management, and alternative investment and real estate strategies.

11

Types of Funds 5.1 5.2 5.3 5.4 5.5 KASB KASB KASB KASB KASB Islamic Funds Cash Funds Liquid Funds Stock Marketing Funds Balanced Funds

12

KASB Liquid Fund Validity Date Monday, December 07, 2009 Offer Price PKR 88.2372 Redemption Price PKR 88.2372 Redemption Price PKR 87.7960 (with contingent back-end load) Annualised yield since 3.66% inception* KASB Islamic Income Fund Validity Date Offer Price Redemption Price Annualised yield since inception* KASB Cash Fund Validity Date Offer Price Redemption Price Annualised yield since inception* KASB Stock Market Fund Validity Date Offer Price Redemption Price KASB Balanced Fund Validity Date Offer Price Redemption Price

Monday, December 07, 2009 PKR 100.2101 PKR 99.2080 8.22% Forms Forms are available at all branches of the following: - KASB Funds Limited - KASB Bank Limited - KASB Securities Limited Contact Information: Toll Free: 08005272-1 UAN: 021 111-535535 Email: funds@kasb.com URL: www.kasbfunds.co m *All returns are based on Mutual Funds Association of Pakistan's (MUFAP) standardized method of calculating yield, which is also being used internationally.

Monday, December 07, 2009 PKR 102.4125 PKR 101.3884 9.35%

Monday, December 07, 2009 PKR 38.86 PKR 37.88

Monday, December 07, 2009 PKR 44.96 PKR 44.06

13

CHAPTER NO.6 KASB DIRECT

KASB Direct is an online share trading portal. A KASB Direct account provides a 24-hours access to your account balances and portfolio holdings, statements, stock quotes, news and research. METHOD: Firstly download Account Opening Form from website www.kasbdirect.com. forms are also available at KASB Direct Office and at all branches of KASB Bank Ltd and KASB Securities Ltd if you are signed up for KASB Direct and have received a user ID and password . Please note that after signing up for KASB Direct, you can place trades only online. You may send cheque / Pay order/DD in favor of "KASB Securities Limited-online account" by mail or drop it personally at KASB Direct office or at any branch of KASB Bank Ltd. or KASB Securities Ltd. Cash is only acceptable at KASB Bank branches An Internet trading account is a special type of account designed specifically for individual investors who prefer to use the Internet to place their orders themselves rather than through a broker by telephone. The minimum account opening requirement for Internet Only account Basic Account is Rs. 100,000 and for a Internet plus trader account Premier Account is Rs. 500,000

14

6.1

KASB Direct Cash Deposit Process Flow

KASB Direct Cash Deosit

CUSTOMER

Customer wants to deposit cash in his KASB Direct Account

Customer fills the KASB Direct Special Deposit slip

Customer makes the necessary corrections

Customer collects the stamped copy

End

YES

KASB BRANCH

Branch CRO / CRM checks the deposit slip as per the Guidelines provided by KASB Direct

CSO / CSM scrutinizes the deposit slip as per the NarrationsGuidlines

NO Discrepant

Branch posts the entry in accordance to designated fields in Misys 0020-

112967-116 and gives the customer copy to the customer

Branch Makes the correction and sends the scanned copy to KASB Direct (Cutt off time 2:00 PM and 5:00 PM) NO

Branch couriers the deposit slips to KASB Direct same day

KASB DIRECT

Accounts dept collects the entry in the system and aknowledge the scanned receiving via email

Entry is correct

KASB Direct send acknowledgement of the slips received next day

YES

KASB Client Account

Funds are transferred to Clients Trading Account

End

15

CHAPTER NO.7 OTHER SERVICES OF KASB BANK

OTHER SERVICES OF KASB BANK 7.1 7.2 7.3 7.4 7.5 7.6 KASB ATM services Online Banking Tele Banking Mobilink Genie Bill Asan Pay Safe Deposit Lockers

16 7.7 B&B Banking & Brokerage Solution

17 7.1 KASB ATM SERVICES KASB bank ATM cards provide self-services baking 24Hores-a-day, 365 days years and offers following services at touch of button from the ATMs Cash withdrawal. Customers can withdrawal cash from his-her accounts up to Rs.25, OOO/ per day in multiples of Rs.I000 and/or Rs.500 currency notes. BALANCE REQUEST: You can see the available balance in your account displayed on the screen or obtained printed advice. MINI-STATEMENT: The ATM shall provide you with an instant mini statement of your ATM linked accounts (declared by you on the application) listing IO last transaction in the account(s). DETAILED STATEMENTS: Your branch at your registered address within one year shall dispatch request for a detail statement. CHEQUE BOOK REQUEST: Request for fresh cheque book may be made through the ATM. The cheque book may be collected from your branch after 3 working days against surrender of duly signed cheque book Requisition slip. PIN CHANGING FACILITY: Customer can change his/her personal identification number (Pin) through the ATM any number of times. ELIGIBILITY: KASB Bank ATM card is available to u free of charges if you maintained a resident rupee saving are current account with any over branches.

18 7.2 ONLINE BANKING KASB bank offer more convenience. The account holder with any branch can now also deposit or withdraw cash at any other branches with in city or anywhere in Pakistan. FACILITIES CURRENTLY AVAILABLE ARE: Cash deposits. Cash withdrawals. Access to balance information. Access to statement of account. Balance Transfer Facility Online Facility Bill Payment Facility CALL CENTRE (TELE BANKING) The AKSB Banks customer convenience comes first. With this in mind they no offer round the clock Tele Banking facilities. The Tele Banking saves your. The hassle of traffic rush. Travel time to the bank. Queuing in at counters. Now a customer can have access to his/her account information while enjoying the comfort of at home, office, or any other place in the world. EASY TO OPERATE: You can obtain any or all of the following information. Balance in your account. Yours accounts statements, Cheq Book Request, Pay Order & other Information on various products.

7.3

CONFIDENTIALLY:

19

A unique password known alone to customers ensures complete confidently of information on his/her account. 7.4 SAFE DEPOSIT LOCKERS KASB bank have arrangement specially designed lockers of various sizes to meet requirement and comfort, convenience and security for customers, the lockers can be opened out side of banking hours late in the evening.

7.5

MOBILINK GENIE

Introduction The document contains common questions that customers may have regarding the Genie application. We recommend that all Genie users should read the section that follows. It will help answer most queries. However, users can call their banks or Mobilink if they require further details.

20

7.6

B&B B&B Banking and Brokerage Solutions allow customer to have liquidity on their finger tips!! It is a joint product of KASB Bank and KASB Direct that ensure swift fund transfer from KASB Bank account to KASB Direct and vise versa. Following are the complimentary services: ATM/ Debit Card Free Cheque book (limited time offer) Access to Airport lounges Free Locker (where available) Anyone who has bank account with KASB Bank and a brokerage account with KASB Direct can avail this product.

21 You must have a KASB Bank and KASB Direct account to avail the benefits of this product. The same basic documents are required as when opening a Savings Account/ Current Account and the customer will have to fulfill documentary requirements for KASB Direct Account opening. There is no account opening fees. Minimum requirement is Rs. 100,000 Profit is calculated on a daily basis as per tiers, and credited to the account.

CHAPTER NO.8

22

SCHEDULE OF CHARGES

8.1

SCHEDULE OF CHARGES 1 JULY 31 DECEMBER 2013

Branch are advised to recover FED @ 16 % on all non fund banking services except, chequebook issuance charges, Umrah & Hajj service charges, Cheque return charges, Utility bill charges. Online charges, Rs. 50/- + FED for cash deposit & cash withdrawals. Free for business flex a/c if maintaining avg.

23 balance of Rs. 100,000/-. Also free for SB a/cs if maintaining avg. balance of Rs. 250,000/ Payment Order, Rs. 100 + FED for account holders & Rs. 500/+ FED for non account holders. . Free for business flex a/c if maintaining avg. balance of Rs. 100,000/-. Five payment orders free per month if maintaining avg balance of Rs. 1 M & above. o Revalidation of PO, Rs. 150/-er request. o PO cancellation, RS. 200/-er request. o Issuance of PO, Rs. 200/-. Commission on DD, 0.1% minimum Rs. 200/- & maximum Rs. 500/-.plus Rs. 75/- postage charges. Free for BF a/c if maintaining avg balance of Rs. 500,000/- & above. Locker Fee, o Small o Medium o Large & Extra Large o Late Payment Fee. o Key Deposit o Breaking Charges Rs. 2000/- p.a. Rs. 2,500/- p.a. Rs. 3,500/- p.a. Rs. 150/Rs. 2000/Rs. 2500/-

Duplicate statement of account charges are Rs. 35/-. Stop payment of cheque charges are Rs. 200/- & F.C. account USD 5/-. Charges on cheques returned are Rs. 400/- per cheque & F.C. account USD 5/- per cheque. Request for issuance of account certificate & balance certificate etc. are, Rs. 150/-. Issuance of cheque book, Rs. 3/- per leaf. Standing instructions fee, Rs. 200/- per transaction plus remittance charges. Account closing charges are NIL. Hold MaiL Instructions, Rs. 1200/- per annum.

ATM Card charges,

24 o Joining fee NIL o Annual fee NIL o Card replacement Rs. 300/o Financial transaction from M-Net & 1-Link 15/o Non-Financial transaction from M-NET & 1-Link 5/o Cash withdrawal limit from KASB ATM 25000/o Cash withdrawal limit from M-NET. 10,000/o Cash withdrawal limit from 1-Link Rs. 20,000/-

Rs. Rs. Rs. Rs.

25

CHAPTER NO.9 CONCLUSIONS & SUGGESTIONS

26 9.1 CONCLUSIONS

At the completion of internship is as an internee has drawn the following conclusions

Some Staff of BANK hired on Third Party Contract that is not in favor of any strong Bank, especially CROz which are hard working to serve their customers, but not getting any fruit full results i.e. Increment, Medical Allowances & other Allowances.

The Branch Banking Network of the bank seems to be smaller in size.

It has been observed that bank is not arranging Training Sessions regularly, especially for new comers, & untrained staff.

Complaint & Resolution Department of BANK is not strong in Todays quick resolution Technologies World.

It ha been observed that banks need marketing.

27 9.2 SUGGESTIONS In the light of above condition, the following are the suggestions For the continuation of equality, Third Party Contractual staff needs to be permanent staff of the BANK on the basis of their working strength, merit job selection & according to their Qualification .as they can work freely without any stress.

The Branch network of the bank needs to be expanded by opening more number of branches spatially in Sindh and Balochistan at least in their main citys to district head quarters and thus, provide employment opportunities to the people of rural areas.

BANK Management needs to arrange the TRAINING Sessions for new untrained Staff, for aware the Banking Rules regulation. These Sessions can be arrange by minimizing the other BANK Expenditures

BANK Management needs to be focus on Complaint & Resolution activity Department for quick resolution. As customers can attract from BANK quick service.

Bank needs to make concerted efforts for marketing of their Products by proper channels I.e. Pamphlets, TV Channels, and NEWS Papers.