By Nabila Mujtaba · Saturday, Nov 3, 2012 0 Comments
Al Baraka Islamic Bank is not only going to introduce new Islamic financial products but will also open up new branches in Pakistan to facilitate the consumers of Islamic products. 
This was stated by the President and Chief Executive Officer of Al Baraka Islamic Bank Adnan Ahmad Yousaf while talking to LCCI President Farooq Iftikhar on Friday.
He said that Islamic banking is in fashion today and has earned a shine that continues to attract funds.
“We don’t treat money as a commodity, which just makes a few people richer and everyone else poorer. Our way generates economic activity and spreads money throughout society. Islamic finance is based on a system of asset leasing and partnerships rather than outright money-lending.”
He said Islamic financing products such as Mudarbah, Ijara, Musharaka and Islamic Export Refinance are catering to a diverse cross-section of the economy, including the Corporate, SME and Consumer sectors.
By Nabila Mujtaba · Thursday, Nov 1, 2012 3 Comments
Meezan Bank and Karachi University (KU) have signed a Memorandum of Understanding (MoU) under which Meezan Bank will provide Meezan Laptop Ease, a Shariah-compliant Laptop Finance facility, on DELL laptops to the teachers and employees of Karachi University. 
The MoU was signed by Mr. Mohammad Raza, Head of Consumer Banking & Marketing – Meezan Bank and Dr. Muhammad Qaiser Khan, the Vice Chancellor of Karachi University at a signing ceremony, held at the Karachi University’s Vice Chancellor’s office.
Speaking on the occasion, Mr. Raza said that Meezan Bank is pleased to enter into this collaboration with Karachi University as this affinity fulfils the Bank’s responsibility towards promoting higher education for the socio-economic development of the country. Mr. Raza said that Meezan Bank welcomes other educational institutions to join hands with Meezan Bank for similar programs.
Dr. Muhammad Qaiser Khan said that with the growth and enrichment of the modern technology, laptops have become a requirement for teachers and students to keep themselves abreast of the latest research in their field of study. He admired the value added features of the Meezan Laptop Ease which have made the product more vibrant and attractive for the teacher fraternity.
Prof. Dr. Mutahir Ahmed, Chairman of Karachi University Teachers Society (KUTS) also appreciated the efforts of the KUTS members to finalize the deal with Meezan Bank and hoped that this Laptop Financing facility would be very beneficial and comparatively more advantageous for the teachers & employees of Karachi University.
By Ali Ahmad · Thursday, Nov 1, 2012 4 Comments
Even with ambitious plans of acquiring CitiBank’s consumer division - NIB Bank cannot survive itself from a staggering losses of PKR 43 Crore, as reported in recent financial statements of third quarter of 2012. 
The board of directors of the NIB bank in its meeting held on Wednesday declared that the bank has posted Re 0.06 as per share loss in the period under review against earning per share of Re 0.04 in the same period last year.
During last quarter, in which NIB Bank managed to reduce its losses, CEO Badar Kazmi said
“These results indicate that the fundamentals of the business are showing a healthy trend.”
Unfortunately (for the shareholders), these results shy away from a healthy trend.
According to the financial results sent to Karachi Stock Exchange, the bank’s interest earning reduced to PKR 10.365 billion in this period against PKR 10.418 billion in the same period last year. The bank’s interest expenses decreased to PKR 8.318 billion against PKR 8.911 billion.
The bank’s total non-interest income increased to PKR 1.773 billion against PKR 1.627 billion in the same period last year while total non-interest expenses increased to PKR 3.885 billion against PKR 3.665 billion.
On quarterly basis, NIB posted PKR 43 Crore as after tax loss translating into per share loss of Re 0.04 in the quarter ended September 30, as compared to after tax profit of PKR 156 Crore earned in the same quarter last year.
By aamir · Thursday, Nov 1, 2012 1 Comment
Business means money. Nothing else. Businesses are run for money and there is usually no other obligation that comes into their way as far as transactions are legal or at least if they can be covered legally.
According to Companies Ordinance 1984, under which the companies of all sorts are run in Pakistan, a director of a company – usually a shareholder or otherwise – can be part of any other company simultaneously. If such simultaneous associations (with more than one companies) are conflicting in terms of interest then all a director needs to do is to disclose such conflicts of interests and that’s it.
Section 187 through 196 of Companies Ordinance deals with the appointment, ineligibility, powers, roles and other rules concerning the directors.
Ordinance says that directors can’t vote for a decision concerning conflicts of interests. He/she is kept out of such process where conflict of interests arises. That’s how the book defines and that’s how companies are run.
But a question arises, is it really possible for a business-owner (a director) to remain neutral especially when his/her company is procuring something from vendors and he himself is part of one potential vendor?
To explain this scenario from real life situation, let’s take this example of Bank of Punjab which recently advertised an opportunity requesting for quotes and proposals for implementation of mobile financial services solutions.
Interestingly, one of the directors at Bank of Punjab is also an advisor at Abacus Consulting, a technology provider which is bidding for the Bank of Punjab tender for offering mobile financial services.
As said above, there is a protocol available when such conflicts arises, i.e. director will be kept out of the process by both Bank of Punjab and Abacus Consulting and this is how pure business ethics will be achieved.
But a million dollar question: Are businesses this noble? Is it really possible for someone with conflicting interest to not to influence the procuring decisions, or sharing of background information or a role of any kind will not be played? (We are specifically talking about Pakistan).
I leave this to you to decide.
By Guest Author · Wednesday, Oct 31, 2012 28 Comments
By Syed Waseem Fawad (CFE, CICA)
Syed Waseem Fawad is a certified Fraud Examiner. He is currently serving as Director – Hina Fawad & Co, Fraud Examiners & Controls Auditors & also acting as the President of Association of Certified Fraud Examiner – Pakistan Chapter.
Resources are scare in the Market Economy and are available for use to everyone but in legitimate Business Manner. Between years 2002 to 2008, Banks launch financial terrorism (declared by US Congress) against the PUBLIC in many Countries by means of Consumer Financing. 
In the competition and Market Penetration, Some Banks cross the LEGAL, ETHICAL and MORAL limits to raise the Profit by hook or crook. Sales and Marketing teams of Bank in the area of Consumer Finance use several illegal means; those are lead to financial losses to Banks. Some Bank introduce new tool for the purpose of GAIN i.e. CORPORATE PROSTITUTION in different location of world.
The issue of Corporate Prostitution is no longer news in Several Countries banking sector but the toll it has taken on the private lives of those concerned and on the self-worth of the persons concerned is a real issue of concerned. The Banking sector is the backbone of every economy and it seems to state the financial pace of the Nation.
Banks sent out their staff, mostly Female Marketing Staff to meet clients and get them to open accounts with them at whatever cost. These clients were often Big Shots in the society who have the means of financing the banks and helping them stay in Competative Market; but they however wanted to be compensated in kind. The clients often demanded sleeping with the Female Marketing Staff. Failure to meet up with the coarse request meant not opening an account with the said bank; and probably failure to meet up with the stated requirement.
Thus the stage was set for Corporate Prostitution in the target Country banking sector.
Both married women and single ladies were forced into this Corporate Prostitution. They either complied or stood the risk of losing their jobs. These bank staff, especially the ladies turned the whole business into a personal affair and ‘business-love’ relationship as they sleep with one client after the other. They were all given financial targets to meet with individually; failure of which meant losing your job. It was not a funny thing and this form of prostitution brought problems into lots of relationships and marriages.
Truth be said, inculcating corporate prostitution into the banking sector by the top managements of banks is an effective business strategy and tool but the toll it has taken on relationships and self-worth of the individuals concern is much. The question now is: Is it really worth it?
Management of some Banks (involve in Corporate Prostitution) are engaged in formation of Fraud Triangle and their Risk Management Units are practically not aware with the Reputational Risk and Theory of Human Behaviors.
Conclusion
It is the responsibility of Senior Managers in Compliance, Financial Crime Risk, Fraud Risk Management, Risk Management, Operational Risk, Internal Control and Audit to review the Policy, Strategy, and Monitor the Operations of Consumer Finance and other Similar products to dig out the wrong doings of Consumer Banking Operations. It also helps out the organization to minimize the chance of Reputational Risk.
It is the responsibility of Agents of Shareholders (means Board of Directors) to prepare the policy in coordination with Minority Shareholders, other Concerned Parties and Ethics Professionals (Certified Fraud Examiners, Certified Compliance Professionals) in the Society to change the Management Climate according to the NORMS of Society to protect the Society from the State ofANOMIE(Lawlessness).
Again Note that Some Financial Institutions are involved in Corporate Prostitution, therefore, it is the responsibility of All Financial Institution in Every Country to execute Background Investigation (before Hiring) through Competent Professionals in the affairs of Potential Future Employees to protect the Environment of your Institution.
Letter written to EconomyAge reflect the thoughts and feelings of readers.EconomyAge may or may not, partially or fully, agree with content of these letters.
You can write to us by visiting this page or email us here: ali.ahmad [a] economyage.com (remove spaces and replace [a] with @ )
By aamir · Wednesday, Oct 31, 2012 0 Comments
MCB Bank has announced the deployment of Microsoft Collaboration and Business Productivity platform to enhance the efficiency of its staff that will enable the bank to offer services to its customers with 30 percent increased performance. 
MCB Bank has opted for Microsoft Exchange Server, Microsoft Active Directory, Microsoft Office and Microsoft System Center Configuration Manager which will enable MCB employees to connect securely and collaborate from virtually any device, anywhere giving them huge edge over their competitors.
Acquisition of the latest technology and moving towards integrated and centralized solutions is the core strategy adopted by the Bank having largest online branch setup in the country. This will enable the technology function to deliver the best quality of services to its internal and external external customers while changing the experience and productivity through a facilitation model; said Mr. Imtiaz Mahmood, Head of Information Technology Group, MCB Bank Ltd.
“Acquiring these Microsoft solutions is a major step which will not only enhance MCB Bank’s Employees’ productivity but will also help us to change the dynamics of the Infrastructure optimization model from standard to rationalized in a phased approach,” said Mr. Aasim Ashraf, Division Head of ITSM (Project Director), MCB Bank Ltd.
Sayed Hashish, General Manager Microsoft North Africa, East Mediterranean and Pakistan felicitated MCB Bank for acquiring state of art technology which would give an edge to its employees in efficient delivery of services.
He said that MCB Bank has always invested in technology to operate efficiently and their recent investment in Microsoft’s business productivity and collaboration platform will enable the bank to maintain its competitive advantage by further improving its service efficiency.
By Nabila Mujtaba · Monday, Oct 22, 2012 1 Comment
National Bank of Pakistan (NBP), Islamabad region has established brisk resolution strategy to cope Auto Teller Machines (ATMs) faults and issues and the number of complaints as compared with the volume of their operations are negligible, a senior official of the Bank told Associated Press of Pakistan. 
“We have 24×7 check up of their ATMs through our Regional Data Centre’s surveillance and the errors are immediately taken up by the respective quarters for their ready solutions’, Tariq Zafar Iqbal Regional Head of the NBP said.
He said that NBP’s regional management in Islamabad always responds to the customers’ calls and there have been witnesses of on the spot rectifications and problem resolutions in this regard.
“It is imperative that we must appreciate their service and dedication which has made it possible for the metropolitans to meet their demands in cash around the clock”, he remarked.
Mr.Iqbal further said that the National Bank of Pakistan is the flag-bearer of service in the financial sector of the country.
The scope of its service, he said was not limited to only domestic operations but it is also globally appreciated and acknowledged as one of the Region’s best banks as accredited through high ratings by the international financial rating agencies as well as by virtue of having won many international accolade and awards over the years.
“Might it be the pension payments to the senior citizens or the government revenue collections and salary disbursements to the public sector, the NBP is committed to deliver the service with a passion for the Nation’s service,being the Nation’s Bank”.
He explained that the NBP started its ATM service in Islamabad in June 1996 when it inaugurated its first ATM in Super Market Branch, F-6, Islamabad. Over the years, the number of NBP’s ATM has increased to 21 in the metropolis.
“These ATMs are spread over the length and breadth of the Federal Capital, including Melody, Super Market, Aabpara, G-9, Pak. Secretariat, i.e. B Block, D Block, S-Block and K-Block, G-10, Airport, A.I.O.U, Foreign Office, F-8 Markaz, Industrial Area, Marriott Hotel, Nilore, P.M. Secretariat and Aiwan-e-Sadder”,Iqbal remarked.
He said that the NBP caters to around 150,000 accounts in Islamabad alone and the number of ATM transactions carried through NBP’s ATM surmount to nearly 90,000 in a month which is a huge number by all means, as evidenced by the data collected by the scribe.
Tariq Zafar Iqbal added that the NBP has turned its entire network of branches to online operations across Pakistan.
“It provides an opportunity to its clients to collect their cash at one touch of a button from any one link ATM. By virtue of NBP’s one link facility, the ATM card holders of all the Bank’s operating in Pakistan can use NBP’s ATM facility”, he remarked.
“It is certainly established that the volume and scale of ATM operations being handled by NBP Islamabad is really magnanimous as compared to all other commercial banks in the country”,he added.
The Regional Head of NBP added that there have been occasional complaints of hard-ware problems, dispenser issues, audit & consumer rolls errors and communication link break-downs.
However, NBP, Islamabad has established brisk resolution strategy to cope with these issues and the number of complaints as compared with the volume of their operations are negligible.
Meanwhile a private sector bank (Habib Bank Limited) Civic Center Branch Deputy General Manager Hamidullah Saif while highlighting the performance of ATMs of his bank claimed that due to special measures taken by the bank to operate ATMs and never received any complained about the ATMs install outside the bank.”We have an alert machine to rectify the promptly ATM error”, he remarked.
“We have established shelters with guard facility outside of the bank and a 24 hrs stand by generator is also installed to operate the ATM in case of power failure to facilitate the customers”, he remarked.
He added that HBL has ATM facility in Rawalpindi-Islamabad areas outside its 67 branches and the customers can draw upto Rs.25,000 at one time.
By Ali Ahmad · Saturday, Oct 20, 2012 0 Comments
MCB Bank, group company of Pakistan’s Richest man Mian Mansha, has recorded 7% growth in profits of Rs 1,667 Crore for the first nine months of calendar year 2012, compared with Rs 1,551 Crore in the same period of the preceding year. 
The profit translates into earnings per share of Rs18.13. The bank also declared a cash dividend of Rs3 per share, taking cumulative payouts to shareholders to Rs10 per share.
Its worth mentioning here that Mansha is intended to take MCB bank into Indian Banking market. MCB Bank is country’s fourth largest commercial bank in terms of asset size.
Banks’ spreads have been declining of late and MCB’s 9 months results are a testament to that, as the gross spread ratio deteriorated to 60.2 percent for the period, down from 66.4 percent in the same period last year.
MCB also recorded a 14% increase in non-interest income, and controlled its non-interest expenses to limit their growth to only 5%. Non-interest income increased due to a 15% growth in fee, commission and brokerage income received by the bank, and a further 46% growth in dividend income on its investments.
By Ali Ahmad · Saturday, Oct 13, 2012 0 Comments
Meezan Bank recorded 16% growth in its profit to PKR 266 Crore for the nine months ended September 30, 2012 compared to PKR 229 Crore in the corresponding period last year. 
Earnings per share of the bank was recorded at Rs2.95 on enhanced share capital of PKR 900 Crore.
The board of directors of Meezan Bank, in their meeting held in Dubai, United Arab Emirates on October 11, 2012 approved the financial statements of the bank for the nine months ended September 30, 2012. The meeting was chaired by His Excellency Sheikh Ebrahim bin Khalifa Alkhalifa, chairman of the board. Total assets grew by 19% to touch Rs239 billion while deposits grew 22% and closed at PKR 208 billion as at September 30, 2012.
Meezan Bank completed ten years of operations in 2012 and has progressively grown to become the country’s 8th largest in terms of branch network.
The JCR-VIS Credit Rating Company – an affiliate of Japan Credit Rating Agency–maintained the bank’s long-term entity rating at AA- (Double A Minus) and short-term rating at A1+ (A One Plus) with stable outlook.
By Ali Ahmad · Tuesday, Oct 9, 2012 1 Comment
According to an official press release, Habib Bank inked an agreement with Tourism Promotion Services (Pakistan) Limited, owners and operators of the Serena Hotels in Pakistan, says a press release. 
Representing HBL at the signing ceremony were recently elected Mr. Nauman K. Dar, President & CEO, Ms. Sima Kamil, Head – Retail and Consumer Banking and Mr. Aamir Kureshi, Head – Consumer Banking while Mr. Aziz Boolani, CEO and Mr. Naveed Abbas, CFO attended on behalf of Serena Hotels.
Habib Bank would be the first bank to enter into collaboration with Serena Hotels, enabling them to offer an exclusive membership of Serena Hotels loyalty program ‘Prestige Plus’ to HBL CreditCard customers offering a wide range of facilities and services.
In addition, customers will be able to redeem loyalty points on the HBL CreditCard at the Serena Hotels.
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