Prime Commercial Bank Ltd

BANKING SECTOR IN PAKISTAN

Banking and Financial services sector in Pakistan comprises the

commercial banks and the non-banking financial institutions, including

the development finance institutions (DFIs), leasing companies,

modarabas (Islamic Mutual Funds) and investment banks. These are

controlled and regulated by the State Bank of Pakistan (SBP). Pakistan

is in the process of adopting an Islamic (Shariah) financial system,

under which interest-based banking is not allowed. However, this has

not been made into a law as yet, and exists only on paper, and most

banks provide an anticipated profit rate in advance. Since 1990 the

Government of Pakistan (GOP) has introduced various reforms in the

financial services sector enhancing the level of autonomy enjoyed by

the SBP. The number of banks operating in Pakistan has increased,

which in turn has resulted in increased competition. The banking sector,

in general, has shown good progress during the last few years. During

previous five years, the combined total assets of domestic banks,

showed an average annual increase of 22 percent, while combined

deposits have recorded an increase of 27 percent per annum. A total of

forty six commercial banks, including twenty one foreign banks, are

1
 Prime Commercial Bank Ltd

operating in Pakistan. Additionally, sixteen Investment Banks, twenty

nine Leasing Companies and fifty three Modaraba Companies provide

a mix of financial services. Three major nationalized commercial banks

(NCBs) are still the dominant players in the market, controlling about

fifty-one percent of the entire banking sector deposits and fifty percent

of advances. NCBs and some DFIs in the public sector are experiencing

difficulties because of over-staffing, inefficiency and large non-

performing loans. GOP is taking steps to recover these loans, by

offering incentives to defaulters. Bureaucratic inertia and political

clout, of some of the defaulters, is a major impediment in this effort.

Opportunities for new Pakistani banks exist in consumer banking,

corporate bonds, investment banking, leasing and housing finance

sectors. Good reputation enjoyed by the existing Pakistani banks will

be helpful for new entrants. Some challenges, however, do exist in the

form of weak economic conditions in Pakistan and the turnaround

possibilities in NCBs through privatization. See appendix for the list of

those banks who are currently working in Pakistan. This include all the

national banks as well as all the foreign banks.

2
 Prime Commercial Bank Ltd

1. What is banking and what are the kinds of banks?

DEFINITION OF BANKING

Banking is not merely trade of money but is also an important

manufacturing and circulating sources for money.

BANKING IN PAKISTAN

Present banking structure of Pakistan comprises of following types of

banks:

STATE BANK OF PAKISTAN

As the central bank of the country with its offices in Karachi, Lahore

Peshawar, Quetta, Faisalabad, Rawalpindi, Islamabad, Multan, Sialkot,

Sukhar and Hyderabad.

COMMERCIAL BANKS

Commercial banks have been the most effective mobilizers of saving,

and have been providing short-term requirements of working capital in

trade, commerce and industry. They are the profit earning concerns.

3
 Prime Commercial Bank Ltd

They receive deposits and advanced loans to the borrowers. They

greatly help in the financing of internal and external trade of country.

EXCHANGE BANKS

Main function of exchange bank includes financing of foreign trade by

purchase and sale of currencies in the form of drafts, bills of exchange,

telegraphic transfers etc. they also performs other functions of

commercial banks. In Pakistan the foreign banks (except Indian banks)

are commonly known as “Exchange Banks” due to the fact that prior to

the independence, foreign banks in Indo-Pak were engaged primarily in

financing of foreign trade. At present 18 foreign banks with 64

branches in main port and commercial towns are operating in Pakistan.

COOPERATIVE BANKS

These are the integral part of cooperative movement which aims at the

promotion of thrift, self help and mutual aid among the agriculturists

and others with other economic needs so as to bring about better living

better business and better methods of production etc.

4
 Prime Commercial Bank Ltd

SAVING BANKS

There is only one saving institution in Pakistan i.e. post office savings

which is wholly controlled by the government of Pakistan. It accepts

deposits from public and invests them in government projects.

Operations of it are very limited.

5
 Prime Commercial Bank Ltd

PRIME BANK
HISTORY AND BACKGROUND

Prime Bank is the vision of a group of Pakistani Professionals with

extensive domestic and international banking and finance experience.

They Teamed up in 1992 with a select group of successful and like-

minded business houses in Pakistan and overseas. Some of the foreign

investor belongs to a highly regarded, very sizeable and well-

diversified business group of Saudi Arabia.

During the Initial Years, Prime Bank’s strategy was focused on

continuing improvement of internal procedures and operating

structures, to ensure a grater control over the quality of its operations.

Commercial banking activities were initiated at time of inception in

1992. During 1993, tow more business divisions i.e. Corporate

Banking and Financial Services were added. By 1996, Prime Bank’s

countrywide network of seventeen branches was in place and consumer

Banking activities were accordingly launches. Under the Bank’s on

going branch expansion program twenty-six new branches have been

added during the years 2001, 2002 and 2003 while seven more

6
 Prime Commercial Bank Ltd

branches will be opened during 2004. This would raise the total number

to fifty focusing primarily on the middle market commercial banking

segment, consumer banking initiative as well as agricultural, housing

and financing of small and medium sized enterprises.

Total Assets of Prime Bank during the period from June 1992 to

December 2003 have grown at an annual compound rate of about 26

percent to Rs.29 billion. Within this year period, Shareholders’ equity

grew from Rs. 300 million to Rs.29 Billion, Deposits to 21.6 billion

and Advances (net to Rs.13.6 billon. Profit before tax grew from Rs.1

million for the half year to June 1992 to Rs.430 million for the year

ended 31st December 2003.

After twelve years of well controlled, yet sure and successful

operations, the Bank is now poised to move forward rapidly to be at the

cutting edge of financial services combining highly efficient delivery

systems with combining highly efficient delivery systems with

continuous product innovation. Therefore, development of superior

Human Skills and the latest Information technology platform are

cornerstones of Prime Bank’s overall strategy to be in the exclusive

club of winning banks of the future.

7
 OWNERSHIP STRUCTURE
CEO Mr. Saeed I. Chaudhry
Business Group Heads
Prime Commercial Bank Ltd
Corporate Finance & Institutional
Mr. Khalid Imran
Banking Group
Corporate & Investment Banking
(Syndications)
Treasury Mr. Rehan Ateeq
International / Correspondent
Mr. Alamgir Khanji
Banking
Financial Institutions
Commercial Banking & Trade
Mr. Amanullah Khan
Services Group
Commercial Banking
(Regions/Zones)
Zonal Head CBP – Gulberg, Lahore Mr. Anjum Saeed
Zonal Head CBP – Egerton Road,
Mr. Ibraaz Saeed
Lahore
Regional Head – Central Mr. Kazi Musrur Mahmud

Zonal Head CBP – Faisalabad Mr. Mehfooz ul Bari

Zonal Head CBP – Sialkot Mr. Imtiaz A. Mir

Regional Head – Karachi & South Mr. Ahmed Fawad Hashmi

Zonal Head CBP – AHR, Karachi Mr. Rohinton L. Meherjina

Zonal Head CBP – DHA, Karachi Mr. Kausar Ali

Regional Head – North Mr. Bilal Bin Zaheer

2. Describe the Employees and Ownership Structure of
Prime Bank?

8
 Prime Commercial Bank Ltd

Trade Services(CPU’s) Mr. Tauqeer Masud

CPU (TS) – Lahore Mr. Sami Uddin Khan

CPU (TS) – Karachi Mr. Mohd. Ali Najmee

Islamic Banking Services Mr. Mazhar Ali Bokhari

Agricultural Finance Mr. Rana Mujahid Ali Khan

Consumer Banking Group Mr. Aneeq Khawar

Credit Head Mr. M. Atif Kausar

National Sales Head – Autos Mr. Syed Ali Salman

Marketing Head Ms. Khawalah Gultasab

Service Quality & Consumer
Ms. Ayesha Rauf
HR Head
Finance & Admin Head Mr. S. Wajih Hussain Zaidi
National Sales Head –
Mr. Muhammad Owais Khan
Mortgages & Revolving Facility
Banking Services Group Mr. Aneeq Khawar

Central Region 1 Mr. Kafeel A.Khan

Central Region 2 Mr. Aleem Ahmed Baig

Northern Region Mr. Bilal Bin Zaheer

Karachi Region Mr. Mansoor Jabbar

Southern Region Mr. Syed Aftab Ahmed

Support Groups

Finance & Planning Group Mr. Shahzad Sadiq

Strategic Planning ““

Central Finance & Accounts Mr. M. Safi Syed

Treasury Settlement Mr. Saleem Ansari

9
Legal & Corporate Affairs Ms. Shaheen Ali
Compliance & Risk Management
Mr. M. Shafiq Naeem
Group
Prime Commercial Bank Ltd
Compliance Mr. Ejaz Ahmed Shamim

Risk Management (Enterprise Wide) Mr. G.M.Shaharyar Ahmed

Credit Risk Review Mr. Waseem I. Khokhar

Treasury Middle Office Mr. Junaid T. Bashir

Credit Group Mr. Khalid Munawar ud Din

Credit Division Mr. Khalid Ahsan

Credit Administration Department Mr. Muhammad Usman

Remedial Asset Management Mr. Akhtar Masih

Operations Support Group

Human Resource Mgt & Training Div Mr. Moghis Bokhari

Banking Operations (Regions) / ATMs Mr. Irqam Siddiqui

Regional Head Lahore & Central Mr. Janeed E. Meer

Regional Head North Mr. Ali Javed Naqvi

Regional Head Karachi & South Mr. W.U.Sakrani

Systems / IT Mr. Sultan A. Khan

Central Administration Department Mr. Shafiq Hussain

Admin. Head Karachi/South Syed Aftab Ahmed

Audit Division, Mr. Sajjad Haider reporting to the Board of
Directors

10
 Prime Commercial Bank Ltd

LOCATION OF THE BANK

Prime Commercial bank Limited having registered office at 77 Y,

D.H.A, Lahore (Pakistan), was incorporated in Pakistan on September
30, 1991 as a public Limited Company under the Companies
Ordinance, 1984 and is listed on all stock Exchanges in Pakistan.

11
 Prime Commercial Bank Ltd

3. Head of Administration Department

Mr. S. Wajih Hussain Zaidi

This department is responsible for the administration activities of the

bank therefore it is responsible for all the administrative costs of the

branch. It removes any branch grievance that is being observed or

communicated to it. These complaints can be related to the customer

service, external function or bank’s internal working.

Following are the key people:

• Mr. Muhammad Usman

Credit Administration Department

• Mr. Shafiq Hussain

Central Administration Department

• Syed Aftab Ahmad

Admin Head Karachi South

12
 Prime Commercial Bank Ltd

4. What are the mission and vision of Prime Bank?

VISION

“ To be the Preferred Bank in the Region ”

MISSION

“To provide exceptional value to all our stakeholders by

competing fairly in our niche markets on the basis of

superior service, innovative products and highest level of

professionalism based on customer orientation, team

work, creativity and operational excellence while

maintaining high ethical standards as a socially

responsible corporate citizen ”

13
 Prime Commercial Bank Ltd

5. What are the goals and objectives of the Bank?

Prime Commercial Bank Limited -Islamic Banking Division will

provide Sharia’h compliant Islamic Banking Products to its customers.

The product range will cater to the requirements of customers who,

presently dealing with conventional banks, want to shift to Islamic

Banking as well as such customers who do not wish to deal with

conventional banks because of their religious beliefs.

14
 Prime Commercial Bank Ltd

6. Organizational Environment of Prime Commercial

Bank?

The vision statement states that the Bank is socially responsible

institution, firmly believing in protection of environment, peaceful co –

existence, and respect for human rights.

15
 Prime Commercial Bank Ltd

ORGANIZATIONAL CHART

SVP

AVP

Consumer Finance Manager Credit Customer Relation Deputy Mgr Deputy Mgr Manager Cash Mgr Account Compliance
Officers Department Officer Finance Service Foreign Trade Department Department Officer

Officer Deputy CRO Deputy Officer Officer Officer Officer

Assistant Deputy Deputy Deputy

Officer Officer Officer Officer

Assistant
Officer

16
 Prime Commercial Bank Ltd

7. What is the Core Values of the Bank?

CORE VALUES

o Passion to succeed

o Striving for customer delight

o Integrity in all our dealings

o Free and open communication

o Promoting team spirit

o Fostering best practices leading to good governance

o Creating an enabling environment for individual performance

and collective growth

17
 Prime Commercial Bank Ltd

8. Explain the competitive Advantages of the Bank?

Clearing is useful in the following ways:

 It dispenses the need of physical transfer of currency from one bank

to another and thus safe a lot of time cost and risk.

 Enables clients to secure cash quickly against cheques.

 Avoid unnecessary blocking up of large sums of cash. The bank can

meet the clearing demands of other banks with a small cash

reserve.

18
 Prime Commercial Bank Ltd

PLANNING PROCESS

Two batches comprising 20 to 25 trainees each will be selected simultaneously.

Training will be conducted in a modular form both in Lahore and Karachi.
Successful candidates will be called for regular batch training.

Core training modules will be as follows:

Duration
S.# Module Class Room On the Job
Training Training

1. General banking Two weeks Six weeks

2. Credit Two weeks Six weeks
3. Trade Finance Two weeks Six weeks
4. Information Technology 3 Days
5. Marketing & Selling 2 Days

19
 Prime Commercial Bank Ltd

9. What are the Goal Setting Methods ?

At present, there are 43 branches operating covering 19 cities and the

bank plans to open 9 more branches during 2007 to increase its branch

network to 50 across the country. Further, the Bank has a

Correspondent network across 106 countries worldwide.

Category Classification

Branches are categorized as;

• Category A branch

• Category B branch

• Category C branch

20
 Prime Commercial Bank Ltd

10. What are the tools of Planning?

Planning, the first of the four functions that make up the

management process, is defined the process of determining where

the organization should be in the future and then selecting and

implementing the most effective set of actions to achieve that future

state. Because the other three management functions (organizing,

leading, and controlling) all involve efforts to achieve the goal set

in the planning process, planning is the most fundamental part of

the management process. Managers plan because they understand

that the future results represented by their organizational goals can

be achieved only by making decisions about current actions. Very

simply, if no action is taken today, the organization cannot achieve

its desired results tomorrow.

A goal is the target of future state an organization wishes to

achieve. Goals are important for four reasons. First, they defined

the organization and justify its existence by specifying the ends if

hopes to achieve. Second, they are clear targets that motivate and

guide managers and employees in their daily activities. Third, goals

21
 Prime Commercial Bank Ltd

direct organizational decision making, focussing attention on the

desired future state and ways to reach that future state. And fourth,

the desired outcome specified by organizational goals serves as a

standard against which performance can be measured.

To achieve the ends represented by organizational goals, managers

prepare a plans to identify the means by which goals are pursued. A

plan help management bridge the gap from the current state to the

future state. Managers must choose among many alternatives in

their daily activities, so a plan is a way of anticipating the actions

necessary to reach goals, allowing managers to make decisions in

advance about the actions to be taken.

22
 Prime Commercial Bank Ltd

THE ORGANIZATIONAL PLANNING PROCESS

The planning process includes developing the organizational

mission, setting goals, and devising plans (See Exhibit 1.2).

Managers begin the planning process by creating, modifying, or

reaffirming the mission, which is the topmost goal in the

organization and which describes the organization’s purpose. Next,

managers use the mission to guide the development of

organizational goals. Then they outline and implement the plans

necessary to achieve those goals. This planning process is as

important for organizations that operate in a relatively simple and

stable organizational environment as it is for those threat operate in

a more complex and dynamic environment. By applying the

planning process, managers are better able to cope with

environmental changes, large or small, because the process forces

them to focus on relevant results rather than considering daily

activities in isolation.

Although the planning process is concerned with predetermining

courses of action that will achieve organizational goals, it is also

closely linked with the management function of control. Managers

23
 Prime Commercial Bank Ltd

use control methods and measures to trace progress toward

achieving the goals they have set, and they use this feedback on

performance to make any necessary changes. Further, they use

control to ensure that their plans are properly implemented and to

maintain consistency of activities and decisions at every

organizational level.

Mission Goals Plans Performan

ce

24
 Prime Commercial Bank Ltd

11. What are the Strategy formulation, implementation

and evaluation?

The policy formulation is an important task performed by the bank

management. The personnel staff has given special attention towards

this side of the management. It is not a very lengthy procedure and the

involvement of relevant people for the important affairs is given due

importance. The important steps in this process are given as follows:

APPROVAL OF MATTER:

The first and the foremost step in the policy formation process is

approval of the matter about which the policy is to be formed by the

board. In the formal hierarchical order the only authority for the

approval of all the matters in the policy making is the Board of

Directors of the Bank. The specified quorum of the Board of Directors

is authorized to approve or disapprove the matter and give due

decisions about it. The members of the Board analyze the matter in the

context of the profitability of the Bank and the given circumstances and

then decide whether a separate policy is required for it or not. After this

feasibility analysis a consensus is developed in the meeting and the

25
 Prime Commercial Bank Ltd

pros and cons of a new policy are considered. This step helps in the

future operation of the bank. If a matter is considered frivolous then the

Board never gives approval for a separate policy of that matter.

FORMATION OF POLICY

The matters for which the board gives approval are presented before the

Management Committee of the bank for the formal details and the

formulation of the policy. The committee considers the important

aspects of the matters and then according to the needs of the

organization the requisite policy is formed. In this process of policy

formation only the members of the committee are involved .Any other

people from the branches of the bank are not concerned with this

procedure. This system is to avoid the involvement of politics in all the

strata of the bank. So that the strong branches don’t tend to get the

policies inclined towards their own banks. The policies are formed

taking into consideration the plight of all the branches and the parties

that are likely to be affected by the formation of a particular policy of

the bank. The people in the committee are apt to form this type of

policies and know how to make these policies.

26
 Prime Commercial Bank Ltd

CIRCULARS TO THE BRANCHES

After the policy is formed the policy is formed it is communicated to

all the branches in the country through the circulars. These circulars are

issued on behalf of the management of the bank. These circulars

contain the comprehensive details of the policies and the ways to adopt

the procedures to follow the policies of the bank.

In this way the management system of the bank is managed uniformly

without any discrimination between the branches .The matters that are

referred by the branches for the formation of the policies are also taken

into consideration and policies are formed about them also. But the

procedure is the same for those matters also. By and large although the

policy formation process of the bank is not completely flawless but it is

very effective and successful for the bank and the stakeholders of the

bank.

27
 Prime Commercial Bank Ltd

MAJOR MANAGERIAL POLICIES

The management of the bank has chalked out a well defined policy for

all the affairs of the bank and the welfare of the employees in the bank.

These policies are very important for the smooth running of an

organization. These are the rules and regulations of the bank to which

all the employees have to stick and perform their respective duties.

Some of these policies are given as follows:

• Accounting policies

• Marketing policies

• Recruitment policies

• Training policies

• Dressing policies

• Environmental policies

28
 Prime Commercial Bank Ltd

12. What is the Organizing and Staffing Process?

HUMAN RESOURCE MANAGEMENT (HRM)

The employees of Prime Bank strongly believe that, Human resource is

most valuable asset for every bank. Prime Bank is improving staff

professional quality and proficiency, they conducted on job training

programs and house seminars and courses at their training centers

Prime Bank training academy is equipped with the latest audio video

visual training aids, which facilitate in the dissemination of knowledge

and skills. Prime Bank inducted 60 management trainees who are being

taken through a 6-month comprehensive banking training program. The

bank indents to continue on a need basis such program each year.

29
 Prime Commercial Bank Ltd

The exciting new candidates can apply in the following fields

Bachelor
Level

Cash Officer Personal Relation

Master Level

MTO SME Lease Finance Agricultural

(Management
Training Officer) Finance Finance

Recently, Prime Bank has offered new fields to fresh postgraduate

candidates for its branches in all major cities

• SME Finance

• Lease Finance

• Agricultural Finance

30
 Prime Commercial Bank Ltd

1. Application Form

Firstly, candidates fill the online application form or going to nearest

branch then list of successful candidates for any positions who have

been short listed for the written test which will be conducted at our

Karachi and Lahore test centers.

2. Test

The test follows a GMAT format and is designed to evaluate Arithmetic

& Logic skills, English Language, General Knowledge (including
current affairs) & basic PC user skills.

3. List of Selected candidates

Then list of successful candidates who will qualify in the written

test will be displayed.

4. Interview

The most important step is the interview, which is the final criterion

of selection. (Depending upon the job second or third interview is

conducted)

31
 Prime Commercial Bank Ltd

5. Recommendation

Head office (Karachi) has the rights to give final approval for hiring on
the basis of the written test and interview.
NOTE: Prime Bank also hires the candidates on the basis of reference
as well as doing head hunting

PROBATION PERIOD

The selected applicant has to go through a probation period of 3 to

6 months. After the specified period the evaluation report is

generated about the working and behavior of the employee and

headquarters is informed about it.

DISABLED PEOPLE

Prime Bank also has one post of disabled persons in all the

departments.

32
 Prime Commercial Bank Ltd

TRAINING PROCESS

Prime Bank’s management believes in developing the potential of the

Bank’s employees to the fullest extent. Training & Development Centre

of the Bank is housed in custom-built, state of the art facility on the 4th

floor of the Head Office building at Karachi. The centre is responsible

for providing multi-level high quality training programs to all staff

members in the following areas;

• Consumer banking operations

• Credit marketing & credit proposals

• Credit administration/documentation

• Trade finance operations

• Marketing & selling skills

• Customer service skills

• Performance appraisal skills

• Time management & personal effectiveness

It is obligatory for each staff member of the bank to attend at least one

training program.

33
 Prime Commercial Bank Ltd

Wherever the Training Department is unable to provide focused

training for certain groups of staff, reputable external training providers

are invited to fill the gap.

OFF-JOB TRAINING

They conduct training for the new comers from 2 to 3 months at their own

academy in Karachi that is their head office.

Contract Master Level

• At least 3 years

• 100,000 bonds signed

Contract Bachelor Level

• At least 2 years

• 50,000 bonds signed

Salaries

• Starting from 10,000 for cashier

• Starting from 12,000 for customer officers

• Starting from 20,000 for Management Trainee Officers (MTO)

34
 Prime Commercial Bank Ltd

ON_JOB TRAINING

They conduct Head Office seminars, presentation, magazines and

training program. Those people who are serving they are capable

persons and highly qualified from the foreign countries.

35
 Prime Commercial Bank Ltd

13. What is the Leading Process?

Directing, influencing and motivating employees to perform essential

task.

The process of leading in Prime Commercial Bank is done by adopting

various techniques of motivation, effective leadership and effective

communication.

EFFECTIVE LEADERSHIP

Leadership is the process of influencing other towards

accomplishing goals. Effective leadership is essential for a

company’s success. GCB lays special emphasis on managers to be

effective leaders, because it wants the employees to be properly

motivated, assessed and guided by the managers. All managers at

the hierarchical level are equal with respect to formal authority and

managerial power as organization is centralized. It is required, for

effective leadership, that managers are fully aware of employee

needs, and performance and are thus able to guide them better.

The philosophy of Kaizen is followed by Prime Commercial Bank

i.e. “Continuous improvement for betterment” due to effective

36
 Prime Commercial Bank Ltd

leadership, team work and the philosophy of Kaizen, GCB has

acquired a strong position in private banking sector.

The top management has been playing active role in this regard.

Training courses are conducted which focus on managers to become

effective leaders by developing team work, staff motivation

planning and leadership. Moreover, RGM, Regional General

Managers, are also continuously trained to effective assess and

guide the staff.

MOTIVATION

This is one side of leadership. The leaders who motivate the

subordinates are considered efficient managers. Motivation is

physiological process. It is inspiring a person in the organization to

identify his/her desire and willingness to use his/her potential for

achievement of organization goals.

Motivation plays a role in most organization in atleast three ways.

1. People must be attracted motivated to join an organization and

remain in it.

37
 Prime Commercial Bank Ltd

2. Once on the job, employees must be induced – or motivated – to

exert energy and effort at an acceptable rate.

3. An organization’s human resources must be maintained and

developed. Company sponsored training programs and

conferences are often used for this purpose.

Motivation is an essential element in the success of all such activities.

The management of Prime Commercial Bank wants a high level of

performance from its employee for this purpose, the top management

supports to motivate the employees of all the departments to create a

stronger team.

38
 Prime Commercial Bank Ltd

14. Describe the Controlling Process of the Bank?

CONTROLLING

The managerial function of controlling is the measurement and

correction of performance in order to make sure that bank’s

objective and the plans devised to attain them are being

accomplished. Controlling is the function of every manager from

top to middle level.

BASIC CONTROL PROCESS

Basic control process involves three steps:

1. Establishment of Standard

(As plans are the yardsticks against which managers devise

control, the first step in the control process logically would be to

establish plans.) Since plans vary in detail and complexity so the

top management make standards and communicate it to every

branch manager.

39
 Prime Commercial Bank Ltd

2. Measurement Of Performance

Although the measurement is not always practicable – but (in the

bank every branch manager is continuously checking the

performance of employees so that it is sure that employees will be

on the right path of achieving organizational goals).

3. Correction Of Deviations

(Standards should reflect the various positions in an organization

structure.) If performance is measured accordingly, it is easier to

correct deviations. In the bank “any performance not upto the

mark is questioned directly” by the manager of that branch and

collectively solution is sought.

ESTABLISHMENT OF CONTROL

Each of 252 branches is the Bank itself each branch sets its own

target and standards and establishes its own control system. Each

branch is not held responsible for achieving its preset targets of

profits to the head office. The chairman daily reviews bank

statements pertaining to each branch and any deviation or lack of

40
 Prime Commercial Bank Ltd

performance efficiency is directly questioned and branch manager is

held accountable.

Branch Managers are granted limited powers to extend credit. Any

case for credit beyond a certain limit is forwarded to the head

office. Another very god control system of the Bank is the Audit

Department. There are 15-20 auditors all the time in the field to

keep check on various branches.

41
 Prime Commercial Bank Ltd

15. Describe the SWOT Analysis?

STRENGTHS

 BIN MAHFOOZ GROUP

The bank is owned by BIN MAHFOOZ group of Saudi Arabia,

therefore people have trust and confidence in banks operating

profitability.

 CUSTOMER ORIENTED

The bank provides high status services in every field, whether

consumer banking, commercial banking or private banking

 ONLINE TRANSFERS

It-is-a-recently-achieved strength. Almost branched are on

line and more branches are to be made online very soon.

 LOCATION

All the Prime bank branch locations are in commercial areas.

42
 Prime Commercial Bank Ltd

 STRICT ADVANCING POLICY

One more Strength of Prime Bank is that very less amounts of debts

turn doubtful or bad due to their conservative policy.

 BRANCH NETWORK

Large number of branches has been opened and stills more

branches more branches are under expansion plan

43
 Prime Commercial Bank Ltd

WEAKNESSES

 BRANCH LAYOUT

Some of the branches do no have an impressive lay out,

 NO ADVERTISEMENT

Prime Bank does not make any advertisement or promotion

of its products,

 INTERNATIONAL BRANCH NETWORK

No branches of Prime Bank are in any other countries. So the

bank has to incur additional cost for correspondent banking,

44
 Prime Commercial Bank Ltd

THREATS

 E-BANKING

Many banks are providing e-banking to their customers which is

a threat for the bank

 PRODUCTS AND SERVICES

A wider range of products and services is being provide by the

competitors e.g. ATM, Traveler's cheques, master cards etc.

 INSTABILITY

The recession experienced by the economy has overall affected

the banking industry

 LARGE NUMBER OF NEW COMMERCIAL BANKS

Recently with the overall improvement in the economy and

banking sector reforms, the banks have expanded their networks

considerably and this is a consistent threat to strive for survive.

45
 Prime Commercial Bank Ltd

OPPORTUNITIES

 BRANCH NETWORK

Due to lament licensing police by SBP Prime Bank has more

opportunities to open new branches.

 MARKETING

More market share and customers can be gained by effective

marketing strategies.

 NEW PRODUCTS AND SCHEMES

New customer friendly products can be introduced

46
 Prime Commercial Bank Ltd

RECOMMENDATIONS AND
SUGGESTIONS

IMPROVED CUSTOMER SERVICE

A regular contact with, the customers should be maintained in person.

NEW PRODUCTS AND SERVICES

Today is the time of tough competition and the banks try to grab each

other's customers by introducing new and innovative products. Prime

bank should also get into providing excellent ATM service and E-

Baking services to its customers.

CAR/HOME FINANCING SCHEME

A car-financing scheme can prove to be very profitable these days.

Almost all the competitors of Prime bank offer such schemes. These

schemes must be made more attractive to gather more market share.

ADVERTISING

Marketing and publicity being the strategic tools are among the most

important techniques to increase the business and attract more and

47
 Prime Commercial Bank Ltd

more customers. Prime Bank should advertise its products and services

and participate in Public awareness activities.

TARGET MARKET

The landing policy of the bank is very conservative and it targets only

selective class of people. The target market should be expanded to cater

the lower middle class also.

ACCOUNT HOLDERS

The policy of the bank is too accepting only those applications that are

backed by proper “ Introducer”. This is a safety measure but the policy

needs to be reconsidered to increase deposits.

MARKETING DEPARTMENT

A proper marketing department should be established in order to attract

more customers by making appropriate strategies.

IMPORTANCE TO EMPLOYEES

Due importance should be given to all the employees to encourage

them.

48