TABLE OF CONTENTS

DESCRIPTION PAGE #

History of RBS 01

Present stage of RBS 04

ABN AMRO renamed to RBS in Pakistan 05

Mission Statement 06

Objectives 06

Corporate values 07

Corporate information 08

Management hierarchy 09

Branch hierarchy 11

Field of activities

Consumer banking 12

Deposit 12

Loan 16

Credit cards 22

Insurance 26

Relationship privileges 31

Islamic banking of RBS 42

Royal preferred banking 46

Corporate and institutional banking 47

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Training programme 48

Marketing mix 52

Financial analysis 59

Ratio analysis 62

Horizontal analysis 66

Comments 68

Vertical analysis 69

Comments 71

SWOT analysis of RBS 72

Identification of plausible problem(s) 74

Suggestions 75

Conclusion 77

Bibliography 79

Annexure 80

2

FOREWORD

There is a great difference between theory and practice. In order to equip a

theoretically sound person with practical knowledge, training is the only way out. The

management guru, Tom Peters expresses the urgency in the following forceful words

“Practical training should assume the same luster and priority in the 1990’s that

sending a man to the moon had in 1960’s.”

So we will be successful only if we will acquire new knowledge and advanced skills

to be more competitive.

Feeling the importance of this fact, the internship that is basically a training program

has been made a compulsory part of our B.Com HONS program. So that the people

who are studying business in theory must also be well acquainted with practical

working experience to be better executives.

For this purpose, 6 weeks have been assigned to me to work in a banking company,

The Royal Bank of Scotland (formerly ABN AMRO Bank Limited), to acquire new

manipulative skills, and technical knowledge. No doubt this short training period in the

bank facilitated me in establishing a correlation between theory and practice.

The internship report which was compulsion by my institute to be submitted was asked

to be written encompassing the all areas of activities of bank. The report which is in

your hands is a result of collection of all relevant material which I did during my

training through interviews, observations or by actually working there. Information

regarding the industry and company business processes, detail of departments,

functions and SWOT analysis of RBS also been discussed. The last part of the report

consists of identification of problems, recommendations, conclusion and bibliography.

The source of information includes written notes, annual statements of the bank,

extracts from banking literature etc.

I hope this report will be helpful in building the understanding of the reader about

banking practices and procedures, especially about The Royal Bank of Scotland.

           I will appreciate suggestions to improve my work

3

ACKNOWLEDGEMENT

First of all, I want to offer my humble gratitude to Almighty Allah who showered His

blessings upon me and gave me strength and real spirit to accomplish this lengthy job.

I am also thankful to the Principal of my institute Prof. Dr. Liaqat Ali who provided

me opportunity to work particularly in some organization and to gain valuable working

experience.

I also want to offer my thanks to Mr. Adeel Ahsan, Branch Manager of Faisal Town

Branch. He said me a very nice welcome on the very first day of my internship thereby

leaving a very good impression of the bank.

I am also indebted to all those officers, working in RBS through whom department I

have been rotated and who provided me the real information about the job and

cooporate with me to collect relevant material specially Mr. Muhammed Ahmed,

Area Operations Manager. I am also thankful to all the C.G.E’s and R.M’s, their

cooperative attitude helped me in every respect. I am also thankful to all those officers

in whose departments I did not work but I interviewed them and collect very

informative knowledge.

I am also indebted to Miss. Nadia Ayaz, Customer relationship officer, for giving me a

lot of encouragement during my Internship Program.

Additionally all those employees whose names are not in my mind but they directly or

indirectly helped me in the collection of material and completion of my report.

ZANOBIA HASSAN

ROLL NO 660

       FINAL SEMESTER

4

HISTORY OF THE ROYAL BANK OF

SCOTLAND

On 31 May 1727 The Royal Bank of Scotland was granted

a royal charter under the great seal of Scotland with

authority to ‘exercise the rights and powers of banking’.

The Earl of Ilay, one of the most powerful men in Scotland,

was its first governor. In December 1727 the new bank

opened for business in Ship Close, Edinburgh. The Royal

Early banknote of The Royal

Bank of Scotland, 1727

Bank soon showed its willingness to innovate by introducing the ‘cash credit’ or

‘overdraught’ in 1728 - whereby a borrower could draw out more than was in his

account but be charged interest only on the sum borrowed. Soon afterwards the bank

also began to accept deposits at interest, although note issue was to remain the focus of

its lending and profits for several decades.

In the years that followed, the Royal Bank developed connections with the growing

number of provincial banking companies, thereby pioneering correspondent banking in

Scotland. In 1783, it opened its first branch office, in the fast growing city of Glasgow.

The branch was a great success, and was soon generating a significant proportion of the

bank’s profits.

In 1821 the bank moved from the congested Old Town to St Andrew Square in the

New Town of Edinburgh, occupying from 1828 the magnificent Georgian town house

which remains the bank’s registered office today. The bank continued to expand during

the nineteenth century, opening branches in Dundee, Rothesay, Dalkeith, Greenock,

Port Glasgow and Leith during the 1830s, acquiring various agencies of Western Bank

after its collapse in 1857 and purchasing Dundee Banking Co (est 1763) in 1864. In

1874 the Royal Bank opened a branch in London. By 1910 the bank boasted 158

branches and around 900 staff.

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The outbreak of the First World War heralded a period of rapid change in the banking

industry. Many bank clerks of military age enlisted and the gaps were filled by the

recruitment of female staff on an unprecedented scale. Overall the volume of banking

business grew, prompting a series of major amalgamations after 1918, including moves

to affiliate certain Scottish and English banks. The Royal Bank embarked upon a policy

of expansion south of the border, acquiring Drummonds Bank in 1924 and Williams

Deacon’s Bank, with its large network of branches in the northwest of England, in

1930.

In 1939, with war imminent, the Royal Bank negotiated the purchase of Glyn, Mills &

Co, owners of the old established banks of Child & Co and Holt & Co. Glyn, Mills and

Williams Deacon’s continued in business as separate entities and together with the

Royal Bank became known as The Three Banks Group.

During the Second World War the bank experienced similar problems to those of 1914

to 1918, with controls over foreign exchange and lending priorities as well as shortages

of staff.

Poster advertising the Royal Bank’s

foreign exchange services, 1930s After the war the bank’s expansion continued, with the

opening of new branches and the launch of such services

as personal loans and cash dispensers. In 1969 The Royal

Bank of Scotland amalgamated with National

Commercial Bank of Scotland - itself the product of a

merger ten years earlier, between National Bank of

Scotland and Commercial Bank of Scotland. The new

bank, with 693 branches, enjoyed over 40% of Scotland’s

banking business. In 1970 its three London clearing banks - Glyn, Mills, Williams

Deacon’s Bank and The National Bank - combined to form Williams & Glyn’s Bank.

During the 1970s, The Royal Bank of Scotland flourished, playing a leading role in

lending to businesses that served the North Sea oil and gas industry and launching its

own leasing and finance companies. In 1972 it was the first British clearing bank to

provide house purchase loans and in 1977 new automatic tellers, known as Cash line

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machines, replaced the earlier fixed amount machines. In England and Wales Williams

& Glyn’s was similarly successful and innovative, introducing the Masterguard

insurance scheme and free banking for personal customers in credit. In 1985 the Royal

Bank merged the businesses of Williams & Glyn’s Bank and The Royal Bank of

Scotland, to become Britain’s first truly nationwide high street bank.

Also in 1985, The Royal Bank of Scotland launched the innovative new insurance

provider Direct Line. Three years later, the Group acquired Citizens Financial Group of

Providence, Rhode Island. In the early 1990s the Royal Bank refocused on its core

business of retail banking. It acquired the Edinburgh-based private bank of Adam &

Company in 1992 and launched Direct Banking in 1994. Two years later it established

a pioneering independent offshore bank, Royal Bank of Scotland International and in

1997 announced the UK’s first fully-fledged on-line banking service. It also launched

joint financial services ventures with both the retailing giant Tesco and Virgin Direct.

In 2000 The Royal Bank of Scotland Group acquired National Westminster Bank plc.

Since the merger both retail banks have continued to operate as separate brands on the

High Street.

The Royal Bank of Scotland today operates a network of 650 branches and 1,700

ATMs across Britain. It provides 24-hour telephone banking, and its online banking

facilities offer almost every financial product, from mortgages to stakeholder pensions.

The bank has come a long way since 1727, and today serves around three and a half

million personal and small business customers.

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PRESENT STAGE OF RBS

The Royal Bank of Scotland Group has grown from small beginnings nearly 300 years

ago to become the second largest financial services group by profit, in the world. With

an AA credit rating, RBS group has more than 40 million customers worldwide,

operating profit in 2007 ₤10.3 billion, and total assets, as at 31 December 2007, of GBP

1,900.5 billion. Our brands operate around the globe and down your street to provide

banking services for individuals, businesses and institutions. Proud of our history, we

remain committed to innovation and service - in business and through our many

sponsorship activities. The Royal Bank of Scotland Limited is a locally incorporated

bank operating as subsidiary of ABN AMRO Bank N.V Amsterdam as a public limited

company and is listed on all the Stock Exchanges of Pakistan.

Asia Pacific

The Royal Bank of Scotland Group is now one of the top five banks in the Asia Pacific

region for corporate and institutional customers, and retains a strategic partnership with

Bank of China. We also provide wealth management services across the region through

RBS Coutts.

Europe

As well as having the largest branch network in the UK and providing market-leading

wealth management, consumer finance, insurance and corporate banking solutions to

millions of customers, the RBS Group has a growing presence across the rest of

Europe.

North America

The Royal Bank of Scotland Group is now one of the top 10 banking groups in the US,

and an established name across North America. Citizens Bank has retail branches in 13

states, while RBS Global Banking & Markets works with 80 per cent of the Fortune

100 companies.

8

ABN AMRO RENAMED TO ROYAL BANK

OF SCOTLAND (RBS) IN PAKISTAN

The Royal Bank of Scotland (RBS) Group formally re-branded ABN AMRO

branches in Pakistan on Friday, August 1, 2008.

Pakistan is among the first Asian markets where ABN AMRO has been re-branded as

RBS effective from August 1 as approved by local regulators. ABN AMRO Bank

(Pakistan) Ltd will now be officially renamed as The Royal Bank of Scotland Ltd. This

follows the successful global acquisition of ABN AMRO in October 2007 by an RBS-

led consortium.

A press statement of the bank said presently RBS was the second largest financial

services group by profit, with an ‘AA-’ credit rating with total assets of 1,900.5 billion

pound sterling as of December 31, 2007.

The Royal Bank of Scotland Group has grown from small beginnings nearly 300 years

ago to become the second largest financial services group by profit in the world. With

an AA credit rating, RBS group has more than 40 million customers worldwide and

total assets, as of 31 December 2007, of €2.4billion. Our brands operate around the

globe and down your street to provide banking services for individuals, businesses and

institutions. Proud of our history, we remain committed to innovation and service - in

business and through our many sponsorship activities.

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MISSION STATEMENT

Our mission is to support the financial industry in prudently managing risks, including

sovereign risk; in developing best practices and standards; and in advocating

regulatory, financial, and economic policies that are in the broad interest of our

members and foster global financial stability.

OBJECTIVES

Ensure we are the best banks for our chosen customers

Playing systematically to our strengths

Maintaining cost and capital discipline

Competitive advantage is largely based on customer satisfaction and trust.

1. Creating value for our clients by offering high-quality financial solutions which best

meet their current needs and long-term goals.

2. Focusing on:

Consumer and commercial clients in our mid-market franchises (NL, US

Midwest, Brazil) and selected growth markets around the world

Selected wholesale clients with an emphasis on Europe, and financial

institutions

Private clients

3. Leveraging our advantages in products and people to benefit all our clients.

4. Sharing expertise and operational excellence across the Group.

5. Creating ‘fuel for growth’ by allocating capital and talent according to the principles

of Managing for Value, our value-based management model

Our competitive advantage translates into customer satisfaction.

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CORPORATE VALUES

Corporate Values provide the foundation for the bank's Business Principles. The bank

formulated these Corporate Values in 1997.

Their values and principles also help them on their journey to sustainable development.

By living according their defined Corporate Values and Business Principles they can

meet the needs of their organization and stakeholders today, thus protecting, sustaining

and enhancing human, natural and financial capital for the future.

Integrity: Above all, they are committed to integrity in all that they do, always,

everywhere.

Teamwork: It is the essence of their ability to succeed as a trusted preferred supplier

of financial solutions to their clients. Their overriding loyalty is to the good of the

whole organization. They learn from each other and share their skills and resources

across organizational boundaries for their clients' benefit and their own.

Respect: They respect every individual. They draw strength from equal opportunity

and diversity, at the same time supporting personal growth and development. They

value and they all benefit from the entrepreneurial spirit of each individual.

Professionalism: They are committed to the highest standards of professionalism,

they pursue innovation, they deploy imagination, they are open to new ideas and they

act decisively and consistently. They are determined to deliver outstanding quality so

that their relationships with their clients will be long lasting and close.

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CORPORATE INFORMATION

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Chairman

Mr. Muhammad Aurangzeb

Chief Executive Officer

Mr. Shehzad Naqvi

Directors

Mr. Robert Ralph Davis

Mr. James Alexander Brown

Lt. Gen (R) Muhammad Maqbool

Mr. Shamim Ahmad Khan

Mr. Shahid Hafiz Kardar

Audit Committee

Mr. Shamim Ahmad Khan

(Chairman)

Lt. Gen. (R) Muhammad Maqbool

(Member)

Mr. Shahid Hafiz Kardar

(Member)

Mr. James Alexander Brown

(Member)

Chief Financial Officer

Mr. Mirza Zafar Baig

Company Secretary

Mr. M. Shahzad Sadiq

Auditors

Messrs M. Yousuf Adil Saleem &

Co.,

Chartered Accountants

Cavish Court, A-35, Block 7 & 8,

KCHSU,

Shara-e-Faisal, Karachi – Pakistan

Legal Advisors

Messrs Hassan & Hassan (Advocates)

7-D, Kashmir/Egerton Road,

Lahore – Pakistan

Registrar

Messrs Hameed Majeed Associates

(Pvt) Ltd

H.M. House, 7 - Bank Square, The

Mall,

Lahore – Pakistan

Principal Office

16, Abdullah Haroon Road,

Karachi – Pakistan

Registered / Head Office

77-Y, Phase - III, Commercial Area,

Defence Housing Authority,

Lahore – Pakistan

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14

Country Head Branch Banking

Area Managers Branch Banking

MANAGEMENT HIERARCHY

Consumer banking

Each and every department of RBS has these designations separately

Manufacturing (Services)

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Consumer Banking Head

Regional Head Branch BankingSouth / Central / North

Branch Managers

Relationship Managers

Assistant Relationship Managers

Customer Relationship Officers

Regional Head Operations South / Central / North

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Country Head Services

Country Head of Operations

Area Managers

Branch Operations Managers

Cash & Payments Services

Remittances Dept Local / Foreign

Operational Controls Department

Clearing Department

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Branch Manager

Operation Manager

Cash /Deposit

Department

Clearing Department

Consumer Finance

Department

Advances Department

Account Opening

Department

Remittance

s

Departmen

t

BRANCH HIERARCHY

CONSUMER BANKING

1) DEPOSIT

Whether to achieve a specific financial goal or to simply get the best returns on your

money, our Deposit Accounts are designed to meet your financial needs and help you

realize your aspirations!

Access Account

Anchor Account

Classic Account

Sahulat Account

Value Term Account

ACCESS ACCOUNT

Access Account - Enjoy greater accessibility and reach

Access Account opens doors to a new checking account with swift turn-around times,

ideal for traders and businesses with considerable daily transactional needs.

Access Account provides you the option of earning profit with a tiered rate structure

while ensuring the ease of carrying out your day-to-day transactions.

You can open your Access Account with a minimum balance of PKR. 50,000 to enjoy

the following exclusive benefits:

Annual Fee waiver on our Credit Cards for the first 3 years

Extensive countrywide branch network of over 75 online branches

Free instant funds transfer to any account maintained with The Royal Bank of

Scotland Limited, formerly ABN AMRO Bank (Pakistan) Limited (RBS)

24 hours account access to over thousand ATMs across the country

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24 hours access to our Non-Stop Banking Centre

Free-of-Charge E-Statements allowing you access to your account information

via e-mail

Free of Charge SMS Banking facility

Freedom to conduct free-of-charge over the counter cash deposits and

withdrawals at all RBS Branches

Drop Box facility available at 98 convenient locations across the country

A dedicated Account Officer will be your personal guide to a world of financial

services and privileges and provide you with constant assistance to secure a

financially successful future for you.

ANCHOR ACCOUNT

Anchor Account - Providing you financial security with higher

returns

Anchor Account promises to deliver the highest service quality standards along with

the benefit of banking convenience and privilege of our Relationship Banking.

Anchor Account provides you the option of earning monthly returns on your balance.

Profit is paid on the minimum balance you maintain in a month.

A tiered rate structure allows you to earn higher returns on higher balances.

You can open your Anchor Account with a minimum balance of PKR. 50,000 to enjoy

the following exclusive benefits:

Extensive countrywide Branch Network of over 75 online branches

24 hours account access to over a thousand ATMs across the country

Drop Box facility available at 98 convenient locations across the country

A dedicated Account Officer will be your personal guide to a world of financial

services and privileges and provide you with constant assistance to secure a

financially successful future for you

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CLASSIC ACCOUNT

Classic Account - A perfect combination between high liquidity and

high yield!

Classic Account is the ideal solution for individuals looking for maximum returns while

maintaining their day to day transactional needs. Your profits are calculated on a daily

basis ensuring that you get the most out of your deposits.

With a tiered structure, Classic Account provides you transacting freedom and you earn

higher returns.

You can open your Classic Account with a minimum balance of PKR. 50,000 to enjoy

the following exclusive benefits:

Extensive countrywide Branch Network of over 75 online branches

Free instant funds transfers to any account maintained with The Royal Bank of

Scotland Limted, formerly ABN AMRO Bank Pakistan Limited

Freedom to conduct free of charge over the counter cash deposits and

withdrawals at all RBS branches

Drop Box Facility available at 98 convenient locations across the country

24 hours account access to over a thousand ATMs across the country

A dedicated Account Officer will be your personal guide to a world of financial

services and privileges and provide you with constant assistance to secure a

financially successful future for you

SAHULAT ACCOUNT

Sahulat Account-As ‘Current’ as it can be!

With a smart blend of ever increasing local proximity backed by strong global

expertise, our Sahulat Account offers you convenience, flexibility and round the clock

access to your funds. 

With an account opening requirement of PKR. 50,000, Sahulat Account offers you a

host of exclusive benefits:

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Extensive countrywide Branch Network of over 75 online branches

24 hours account access to over a thousand ATMs across the country

Freedom to conduct free of charge over the counter cash deposits and

withdrawals at all RBS branches

Free instant funds transfers to any Account maintained with The Royal Bank of

Scotland Limited, formerly ABN AMRO Bank Pakistan Limited.

Drop Box facility available at 98 convenient locations across the country

A dedicated Account Officer will be your   personal guide to a world of

financial services and privileges and provide you with constant assistance to

secure a financially successful future for you.

VALUE TERM ACCOUNT

Value Term Account - Giving you more!

For those seeking great returns with great service, our Value Term Account has all the

answers.

With a minimum balance requirement as low as PKR 100,000, your profits are

calculated on a daily basis ensuring maximum mileage on your investments.

Value Term Account offers the following exclusive benefits:

Flexible tenure options ranging from 1 month, 3 months, 6 months, 1 year, 2

years, 3 years to 5 years

Option for automatic renewals on profit rates prevailing at maturity

Overdraft facility against Deposit

Options to avail monthly, quarterly, half-yearly and annual profit payment    

frequency

A dedicated Account Officer will be your personal guide to a world of financial

services and privileges and provide you with constant assistance to secure a

financially successful future for you

2) LOAN PRODUCTS

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Our Loan Products extend financial flexibility to you without inconvenience or strain.

Our Loan products enable you to achieve easy liquidity. Choose from a diverse array of

products specially tailored to meet your needs.

BALANCE TRANSFER FACILITY

RBS introduces and welcomes you to the new and improved BTF, your One Stop

Payment Shop that takes care of all your financial needs for you. BTF is the most

convenient, flexible, economical and easy-to-use loan facility designed to suit your

needs and give you the power to control your finances. It brings you a variety of

features that provide you the spending convenience you need.

Flexible repayment

One stop payment shop

100% free cash withdrawal

Features

Personal line of credit limit between PKR 50,000 to PKR. 500,000*

Mark-up charged on utilized amount only

*Up to PKR. 2,000,000 for ex-Prime customers only. Conditions apply.

Benefits

Mark-up charged on utilized amount only

Loans and Credit Card bill payments by enjoying a substantially lower mark-up

on your outstanding amounts

100% cash withdrawal at no extra cost

Drop Box Facility

Inter Bank Funds Transfer

Discounts at merchant outlets nationwide

24 hours Non-Stop Banking Centre

No processing fee

Utility bill payments including PTCL , SSGC , SNGPL , Mobilink , Paktel , and

Ufone

Free current account

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Relationship Card

Sign up for Monthly BTF E-statements

Withdraw cash worldwide through 1-Link, MNET and CIRRUS networks by

using your Relationship Card

Experience the convenience of SMS banking

Eligibility

You are eligible for BTF if you are between the age of 21 and 60 years

Have a valid credit card (VISA, MasterCard or American Express).

Documentation

Complete the application form and attach the following:

Employment Certificate from HR/Personnel Department addressed to RBS

(stating designation, tenure of employment gross and net salary)

Copy of last month’s Credit Card Statements.

For salaried individuals

Employment Certificate from HR/Personnel Department addressed to RBS

(stating designation, tenure of employment gross and net salary)

For self-employed individuals/businessmen

Copy of Certificate of Professional Association (for self-employed professionals

only)

Proof of business (Proprietorship Letter or Partnership Deed or Memorandum &

Articles of Association)

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HOME FINANCE

With our Home Finance facility, your dream of owning a house

turns into a reality. Now just think of decorating it.

Home Finance offers you a bouquet of facilities, benefits and services that are par

excellence. From facility disbursal to maturity you can count on RBS to offer you a

relationship of strength. Since your convenience is our only focus, we pay meticulous

attention to every detail. Your dream of a new house comes true with us with maximum

ease that is the RBS hallmark.

Personalized service

Fastest turn around time

Maximum loan amount of Rs. 50 Million

How do I qualify for the Home Finance?

In order to be eligible for this loan, you must be a Pakistani, between 25-65

years of age and residing in Karachi, Lahore, Islamabad or Rawalpindi. ( The

borrower's age must not exceed 65 years at the time of maturity of the loan.)

You must be in continuous employment, since two years or more, at the time of

application.

Alternatively, you must have evidence of 3 years or more of business or

professional experience.

No Payment Penalty

Repay your principle early by paying three installments at once. You can choose to do

this once every six months for no extra charge. (Three installments once every 6

months only. Penalties apply on all other accounts).

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Free Accidental Death Insurance

Your Home Finance facility now comes with absolutely Free Accidental Death

Insurance. Your peace of mind is guaranteed knowing that your family will be

protected in the event of unfortunate circumstances.(Coverage applies only if the

borrower dies as a result of an accident covered under insurance policy and only

applicable for loans less than Rs. 15 Million).

A Complete Banking Relationship

As a Home Finance customer, you are also entitled to various services of a complete

banking relationship.

Opt for our Home Finance facility for a host of privileges:

Simply call our Non-Stop Banking Centre at 111-06-06-06 and our Relationship

Manager will get in touch with you promptly

You can also email us at: info@rbs.com.pk

Home Finance Options

Choose the home finance option that best meets your needs and let RBS make your

dream come true.

Home Buyer

Home Builder

Home Lender

Home Pakistan

Home Refinance

Home Deal

Smart Financial Options

You can also avail other services such as:

BTF Account

Credit Cards

Lockers

Access to 1-link, M-Net and Cirrus ATMs.

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N’Cash

Fulfilling your needs to perfection

With Running Finance Facility and a generous Business Installment Loan, N'Cash

lends you a helping hand towards success and growth with ease, peace of mind and

convenience. In addition, you are accommodated with assistance from Relationship

Managers who are assigned to be by your side for the life of the loan. We’ll give you

the confidence that you’ll never be out of cash when you really need it.

N’Cash empowers you with financing to fulfill your business needs. If that was not

enough, now you can avail all this and more in a way that best suits your business

needs with not one, but two outstanding modes of financing.

Loan Enhancement Facility

Choice between Running Finance or Installment Based financing

With Running Finance you can fulfill your working capital/cash flow needs and with

the Business Loan you can invest in project financing, capital investment, business

expansion or balance transfer from a running finance facility to a term loan.

N’Cash Possibilities

Running Finance

Renewable hassle free credit line

Mark-up only on the amount utilized

Competitive mark-up

Balance Transfer Facility (BTF)

Business Loan

Monthly installment based financing

Competitive mark-up

Balance Transfer Facility (BTF), even from a Running Finance to a term loan

transfer

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WHEELSDesire it. Get it.

Find your wheels and get on the road. Getting the car of your dreams will now be possible with absolute flexibility and simplicity.

RBS cherishes the relationship with its customers; you will be accommodated with

assistance from Relationship Managers who will facilitate you through the procedure

until you find exactly what you want.

Want to get the best out of life?

We’ll help you enjoy in style.

A smart new way to own a car you have always wanted.

No Hidden charges

Affordable

Equity Options

Quick Turn around Time

Pre-payment Option

What makes Wheels a better choice?

No Partial Prepayment Penalty

Repay your principal early by paying three installments at once. You can choose to do

this once every six months for no extra charge.

A Complete Banking relationship

As an RBS customer, you are also entitled to the privileges of a complete banking

relationship.

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3) CREDIT CARDS

RBS mc2 Credit Card

Perfect Features

The RBS mc2 Credit Card compliments your lifestyle, offers you absolute convenience

and unprecedented dependability.

Relationship Privileges

Enjoy privileges of discounts and rewards from major brands of all sectors and

industries! Click to find out how our alliance partners make your Present Wonderful

and Future Perfect!

Shop at any outlet that suits your mood and taste, withdraw cash from ATMs globally

or simply pay off the outstanding amount on any of your other credit cards using your

RBS mc 2 Credit Card. All this and more is possible through the RBS mc 2 Credit Card.

Convenient monthly installment options

Longest installment tenure offered in the market up to 60 months

No hidden costs

 

Installment Plan

Our Installment Plan is the perfect way to pay for your transactions in monthly

installments. We offer a variety of tenures which you can choose from (other than Zero

%) and book your purchases on.

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Choose from an exciting array of products and avail the Installment plan. This means

you enjoy paying monthly installments for various tenures with ABSOLUTELY NO

MARK-UP being charged to you. (Note: Zero Percent Installment plans options vary

from one alliance partner to another with tenures of 6, 12, and 18 months and the

processing fee applies).

The Installment Plan offers you the longest tenure offered in the market up to 60

months. A nominal processing fee of PKR 300 per Installment plan booked applies

along with a regular mark-up rate of 1.40% (as of July 01 2007) per month. This

enables you to pay a convenient installment every month for the longest tenure offered

in the market with no hidden costs!

As an added convenience paying the annual fee is no ordeal as The Royal Bank of

Scotland Limited has broken it into negligible installments every month. Now you can

pay your annual fee in twelve equal monthly installments (at Rs.333 per month for gold

cardholders and Rs.166 per month for blue cardholders). What’s more, NO mark-up

would be charged for this convenience.

RBS Ufone Co-brand

The Royal Bank of Scotland Limited launched its first co-brand Credit Card with

Ufone, one of the leading telecommunication companies in Pakistan. Now, not only can

you enjoy special packages with Ufone, but the more you talk, the more you can earn

on your RBS Ufone Credit Card.

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Up to 4 free Ufone SIMs

Free line rent for up to 12 months

Security deposit waiver up to Rs. 20,000

What do I need to do to get an RBS Ufone Credit Card?

Step 1:   Complete the applications for the Credit Card and the Ufone connections.

Step 2:  Attach the following documents:

1. Copy of your CNIC.

2. Copy of your previous month's credit card statement or copies of your duly

attested last six months bank statements (where applicable).

3. Any other documents that RBS may require.

Step 3:   Drop off the forms at any of our branches or hand them over to your Personal

Banking Consultant.

RBS Airblue MasterCard

The Credit Card for high flyers!!!

The Royal Bank of Scotland Limited in collaboration with airblue has launched a co-

brand MasterCard Credit Card. The RBS airblue MasterCard is designed to provide

customers with a superior travel experience. The RBS airblue MasterCard is

specifically targeted towards frequent and aspiring travelers. The co-brand credit card

offers cardholders incentives such as free tickets against spend on credit card and

through travel on airblue, priority check-in, priority baggage handling, bonus

30

BlueMiles, access to Blue Lounge, discounts at leading retail outlets, Travel

Inconvenience Insurance and much more.

It's not just a card, but a boarding pass to a whole new world!

Apply: Spend: Earn:Reward –

Free Tickets!

Fuel

Utilities

Groceries

Restaurants

Gifts

Eid Shopping

Entertainment

1 BlueMile for

every Rs. 50 you

spend anywhere

1 BlueMiles for

every mile traveled

on airblue

Also earn 1,000

bonus BlueMiles

on Frequent Flyer

Account creation

Manchester

Dubai

Karachi

Lahore

Islamabad

Faisalabad

Quetta

Gawadar

Peshawar

 What do I need to do to get a RBS airblue MasterCard?

Step 1:  Complete the application form for the RBS airblue MasterCard.

Step 2:  Attach the following documents:

1. Copy of your CNIC.

2. Copy of your previous month's credit card statement or copies of your duly

attested last six months bank statements (where applicable).

3. Any other documents that RBS may require.

Step 3:   Drop off the forms at any of our branches or hand them over to your Personal

Banking Consultant.

31

4) INSURANCE

Insurance is the most unselfish thing you may do for your loved ones.  Our

Bancassurance product menu spans across various lines of insurance and offers

combination of life and non-life insurance plans which are made-to-fit your personal

needs.

TREASURE PLUS

Your child has dreams - Pilot, doctor, engineer, lawyer, banker…you can never really

predict the heights your child’s dreams will touch someday. Saving for your child’s

future is a responsibility of all parents - so are your savings enough to make those

dreams come true?

Convenient & Affordable

Exclusive school fee continuation feature

Refinance option with cash payout

At RBS, we believe in providing you with the means and solutions to ensure stability in

not just your life but also your family’s life. RBS has tied up with EFU Life Assurance

Ltd. to bring to you Treasure Plus. Treasure Plus is an investment plan with an added

advantage of an insurance cover aimed at providing for your child’s education needs.

Treasure Plus is really very simple. You select the premium amount (in multiples of

12,000) and term of the plan. Minimum annual premium amount for Consumer

Banking customers is Rs. 120,000 to Rs. 24 million.

You have the flexibility of paying the amount on a monthly, quarterly, half yearly or

annual basis. When your child reaches the college going age, you will receive a lump

sum amount to meet his/ her education needs.

In case of your untimely death, your beneficiary child will receive the sum assured

under this plan. In case of an accidental death/ disability, your beneficiary child will

receive an additional payment of sum assured which will be over and above the regular

sum assured payable under this unique child education insurance plan.

32

GOLDEN YEARS

Give Your Future a Present.

It’s true – life truly begins at 60, when you can watch your children and grandchildren

growing up and see your investments bearing fruit. Planning for this stage of your life

makes it so much easier to relax; knowing that tomorrow is well taken care of. Give

yourself the gift of a secure future – look forward to the Golden Years of your life.

Flexible life insurance and investment plan

10 years pension payment guarantee

Tailor made to suit your needs

RBS has tied up with EFU Life Assurance Ltd., to bring to you Golden Years. Golden

Years is an exclusive, tailor-made life insurance and investment plan which ensures that

you have a sufficient stream of monthly pension after your retirement. It offers:

The choice of either taking a lump sum amount at retirement or receiving a

monthly pension for life

Built in life insurance

10 years pension payment guarantee

Preparing for your future with this investment plan is very simple.

The annual premium for Consumer Banking customers is Rs.180,000; 192,000;

204,000 - increasing by increments of 12,000.

Choose the payment mechanism: Automatic debit from your bank account.

You have the flexibility of paying the amount on a monthly, quarterly, semi-annual or

annual basis. Golden Years guarantees monthly pension payment for up to 10 years

after your chosen retirement age. After the 10 years have elapsed, payments will

continue to be made till you are alive.

ATM WITHDRAWAL INSURANCE

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It is our firm commitment at The Royal Bank of Scotland Limited, formerly ABN

AMRO Bank (Pakistan) Limited (RBS), to continually bring you new and innovative

products delivered with the utmost service excellence. In line with this on-going

endeavor, we introduce to you 'ATM WITHDRAWAL INSURANCE' - a unique

insurance proposition exclusively structured by EFU General Insurance for you -

another first for the Bank in Pakistan.

Unique Offering

24 hour coverage

Now also covers you on 1-Link ATMs

ATM Withdrawal Insurance Coverage

Covers all cash withdrawals made with our relationship card through any ATM

across Pakistan.

Insures withdrawn cash against theft or robbery.

Provides you insurance for cash withdrawals up to Rs.100,000 per day.

A nominal monthly coverage fee of Rs.199 will be charged for this exclusive

insurance coverage. This means that ATM Withdrawal Insurance comes to you

at a low cost of Rs.6.50 per day!

Insurance service charges will automatically be deducted from your account on

the 25th of each month.

Hassle free and convenient payment system.

Insurance Coverage Deactivation

If you wish, you may deactivate your ATM Withdrawal Insurance coverage anytime.

Customers will not be charged for ATM Withdrawal Insurance, from the moment you

get your insurance coverage deactivated. However, previous insurance service charges

levied will not be reversed.

34

ALL ROUNDER

Your most treasured assets are your home, your cash and valuables. The challenges of

modern day living are enormous - concerns about security to property, valuables,

important documents, personal accident and the inevitable cost of liability to third

parties are an ever increasing phenomena.

Secures cash & jewelry at home and in transit

Home structure and contents

Free third party liability coverage

At RBS we believe in providing you with a comprehensive security package catered to

meet all your expenses in case of an unforeseen disaster or eventuality.

Presenting All-Rounder

RBS has tied up with EFU General Insurance Ltd. to bring to you 'All Rounder'.

The ‘All Rounder’ plan ensures your peace of mind by protecting the structure and the

contents of your home. In addition you can also avail the other unique features which

include unmatched coverage for cash & jewelry, important documents and personal

accident.

Individual covers offered in the All Rounder

1   Home Structure as well as its contents & valuables

    Damage to the structure of your home or virtually any of its contents and

valuables (excluding cash, jewelry and mobile phones).

2   Cash and jewelry

    Loss of cash and jewelry in the house or on you in-transit. A Free protection

feature covering your accompanying spouse.

3   Personal accident

    Covers you against accidental death and disability.

4   Personal documents

    Covers the replacement costs incurred due to loss or theft of personal

documents issued by the Government of Pakistan (i.e. CNIC/Passport/Driving License).

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FREE Additional Features

Third Party Liability Coverage

    Example, Your window grill breaks and falls on your neighbor’s car, the policy

will cover damage to both your house and your neighbor’s car

Coverage for lodger’s liability

    Example, dacoits enter your house and not only rob you of your possessions but

also a guest who was present in your house. The policy will cover both yours and your

guest’s losses up to the policy limits

All-rounder Product Options

There are two options available for the ‘All Rounder’ product:

Package A

Coverage Description Coverage Limit (PKR)

Home Structure 2,000,000

Home Contents and

Valuables100,000

Cash and Jewelry 50,000

Third Party Liability (FREE) 100,000

Total Coverage 2,250,000

 

Monthly Premium Rs. 375

Yearly Premium Rs. 4,500

Package B

Coverage Description Coverage Limit (PKR)

Home Structure 2,000,000

Home Contents and

Valuables100,000

Cash and Jewelry 50,000

Personal Accident 150,000

Personal Documents 1,500

Third Party Liability (FREE) 100,000

Total Coverage 2,401,500

 

Monthly Premium Rs. 500

Yearly Premium Rs. 6000

36

5) Relationship Privileges

At RBS, we endeavor to make your banking experience memorable and enjoyable. We

are not just your bank, but your business partner as well. It is our unique commitment

to absolute service excellence that drives us forward. Our global strength enables us to

provide YOU, our valued customer, a complete range of financial products and

expertise.

The banking experience provided by RBS reflects your status and offers solutions that

meet your changing needs. The warmth of personalized attention transforms routine

banking transactions into memorable experiences.

At RBS, all your needs are met, through a true Relationship of Service.

NON-STOP BANKING CENTRE

Why walk to the bank…When you can talk to the bank!

Our Non-Stop Banking offers personalized self service and dedicated phone bankers

catering to all your banking needs 24 hours a day, all year round, even on Sundays and

holidays.

24-hours availability

Personalized services

Instant Banking Solution

Make payments for your credit card, order a demand draft, stop a cheque or pay your

telephone, gas and mobile bills. You can do almost all your banking transactions over

the phone, at the push of a button! For a complete range of our services refer to the

37

Non-Stop Banking Center Services List or simply get started by calling 111-06-06-

06:

Step 1 - Select Language      Press 1 - English  Press 2 - Urdu Step 2 - Select Service

  Press 1 - Self Service Banking  Press 2 - Card Activation  Press 3 - Credit Card Application Status Step 3 - Verify yourself (TPIN Verification)

Enter your Relationship Card or Credit Card NumberEnter your TPIN

     Step 4 - Main Menu: Please Choose Your Service

  Press 1 - For Credit Card Services  Press 2 - For Deposit Account Services  Press 3 - For Loan Account Services  Press 4 - For ATM or Debit Card Services  Press 5 - To make a Utility Bill Payment  Press 6 - To Generate a PIN  Press 7 - To Change your PIN

Forget about rushing off to the bank during office hours or waiting in queues - switch to

banking that's quick, secure and so very convenient.

Use your Land Line or Mobile phone to dial 111-06-06-06 and experience Phone

Banking with a difference!

First Time Users

In case you do not have a TPIN

Step 1:

Press ‘0’ to talk to a Phone Banking Officer

Step 2:

The Phone Banking Officer performs verifications and transfer call to IVR

Step 3:

38

TPIN Generation on IVR

Please enter your New TPIN (a 4 digit number that you can remember easily)

Please re-enter the same New TPIN (to confirm)

ATM NETWORK

Our ATM network allows you access to your money 24 hours a day, 7 days a week,

giving you flexibility to bank at your convenience. Our Offsite ATMs at all major

airports, Stadium Road (Karachi), Park Towers (Karachi) and Gulberg (Lahore) are the

symbols of our commitment to you.

Secure

24-hour availability

Tailor made to suit your needs

Everyone with a Relationship Card (ATM/Debit) or Credit card can use the ATM. All

you need is the Relationship/ATM/ Debit or Credit Card and your personal

identification number (PIN). Learn how to use your card step by step by visiting How

to use the ATM.

Your Relationship Card enables you to perform the following functions on the ATM:

Rupee cash withdrawal

Account balance inquiry

Statement request

Mini statement printing

Cheque book request

Funds transfer (Inter Bank Funds Transfer, Own Account Transfer or Internal

Transfer)

Personal Identification Number (PIN) change facility

Exclusive ATM Withdrawal insurance coverage for RBS customers

Your relationship card is also the key to the largest network of ATMs across Pakistan.

Feel free to explore Pakistan since you may access your funds from over 1350 ATMs

39

country wide using the 1LINK or MNET networks. You may also transfer funds to

another bank using to Inter-Bank Funds Transfer, just look for 1LINK logo and

experience unprecedented convenience and flexibility.

DEBIT CARD

Its all in the relationship!

Your Relationship Card is just one example of the strong bond we share with you. Our

efforts constantly revolve around making the best banking services available for you. In

this spirit, we have taken your Relationship Card a step further. Your Relationship Card

also operates as your Debit Card, besides being your RBS Identification Card and ATM

Card. If you are a Balance Transfer facility (BTF) customer, your Debit Card will

provide the same functionality as a Credit Card!

Step By Step Usage Guide

Step 1: After making a purchase at any restaurant shops or outlet bearing an Orix logo,

present your Debit Card (Relationship Card) to the cashier/ attendant.

Step 2: The cashier swipes your Debit Card through the POS (Point of Sale) machine

and enters the sale amount.

Step 3: The cashier then turns the POS (Point of Sale) machine towards you and

requests you to select any of the accounts linked to your card, which you wish to make

your payment from. You have the option of selecting your savings account, current

account or BTF account. For BTF account payments, select the “Credit Account”

option on the Select Account screen.

Step 4: The screen will then prompt you for your PIN. Using the keypad of the

machine, enter your 4-digit ATM PIN. Please enter your PIN carefully because on 3

successive incorrect PIN entries, your card will be blocked. After entering your PIN,

press ENTER.

40

Step 5: Once the transaction is complete, the cashier/ attendant gives you the sale

receipt and returns your card. You do not need to sign the receipt. Please check your

sale receipt for accuracy of the sale amount.

41

INTER BANK FUNDS TRANSFER

Introducing "Inter Bank Funds Transfer”, a facility enabling you to do bank to bank

transfers directly from the ATM. This product innovation is first of it’s kind in the

world and brings you speed, convenience and safety.

Inter Bank Funds Transfer Facility allows you to transfer money from any of your

Current, Savings or BTF account to any other account at an expanding list of 1Link

Banks such as; Allied Bank Limited , Askari Bank Limited. Habib Bank Limited,

Union Bank and United Bank Limited.

Inter Bank Funds Transfer comes to you with a low cost of Rs. 50 per transaction. You

can transfer Rs. 150,000 per transaction up to Rs. 500,000 per day. This facility is

available for all PKR accounts. You don’t need to activate or sign up for this service;

simply go to the ATM machine and choose the funds transfer selection.

Simply follow the step by step process:

Step 1: Language Selection

Step 2: PIN Verification

42

Step 3: Select Transaction Type

Step 4: Select Funds Transfer Type

Step 5: Select the account you wish to transfer from

Step 6: Select the bank you wish to transfer funds to

Step 7: Enter the selected bank account number

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Step 8: Enter the amount you wish to transfer

Step 9: Please confirm to proceed with this transfer

Funds transfer

Inter Bank Funds Transfer

Own Account Transfer

Internal Transfer

44

E-STATEMENTS

Convenience is just a click away. Now, with RBS, you can receive your statements in

your e-mail. This means, no paperwork to keep track of your transactions. Just access

your personal e-mail account, whenever it’s convenient.

Totally Free

This facility comes to you at no extra cost. All you need is a personal e-mail address, to

which your statements will be sent. If you do not have an e-mail address, you will

continue to receive your statements by mail as usual.

Multiple Addresses

You may choose to get your statements at more than one e-mail address. To avail this

facility, you simply need to fill in the addresses in the e-statement sign up form.

Additionally Secure

While printed statements run the risk of being misplaced, statements to your e-mail are

more secure.

How to Apply

To avail this service, please get a form from any of our branches/ ATM outlets,

complete the form enclosed in the leaflet and drop the form in any of our drop boxes.

Once you’re signed on, you will begin receiving your e-statements after three working

days at the frequency you choose

45

DROP BOX FACILITY

Cheque deposits of your Credit card payments, BTF and Loan repayments have never

been easier. For the convenience of banking 24 hours a day, 7 days a week, we provide

our customers the dropbox facility.

Convenient

Easily accessible

One stop Payment solution

All you have to do is follow this simple three step process to experience true banking

convenience:

Step1: Put your payment cheque in the drop box envelope and seal it (Cash & post-

dated cheques are not accepted via drop box).

Step2: Fill in the drop box envelope (placed at all drop boxes nationwide) with relevant

details.

Step3: Slip the drop box envelope into the drop box (Please allow 3 working days after

depositing your cheque for your amount to be credited). For more information, call

111-06-06-06 or email at info@rbs.com.pk

Drop boxes are located at all RBS branches, ATM locations and selected Shell and

PSO stations. Our drop boxes offer you hassle free and secure cheque deposits for all

your payments.

Find a Dropbox near you:

Karachi

Lahore

Islamabad

Rawalpindi

Sialkot

Multan

Faisalabad

Gujrat

Sargodha

Hyderabad

Gujranwala

46

SMS BANKING

Free SMS Alerts

The Credit Cards combine security with user friendly technology. Receive SMS Alerts

for:

Automatic updates upon Card Approval

Balance inquiries 

Updates on Reward Points Accumulation

Approaching payment due dates

SMS Banking, a convenient way of keeping track of your financial transactions. RBS

brings to you the convenience of banking online using your Mobile. Our SMS Banking

allows you to access your account for inquiry & transactions using simple SMS

messages. Now be in full control of your account from virtually wherever you are!

Perform various inquiries on your account eg. balance inquiry, mini statement

& more.

Get updates regarding products and services.

Get many useful alerts regarding all activities in your account e.g. Payment

alerts, cheque bounce alerts etc.

How can you sign up for our SMS Banking facility

Step 1: Call up our Non Stop Banking Centre at 111-06-06-06.

Step 2: Sign up for our SMS Banking facility and register your mobile number.

Step 3: Once you receive a unique SMS PIN activate the PIN via our Non Stop

Banking Centre. This will enable you to send relevant coded messages to 181.

47

LOCKERS

So put your valuables in a safe place and sleep well!

If your jewelry has been giving you sleepless nights, and the prize bonds tucked in the

bottom drawer make you feel tense, it's time to discover peace of mind. Our Lockers

are safe, convenient and private. As an RBS customer, you can enjoy personalized

service and operate your locker in a friendly and pleasant environment.

Locker Sizes and Fees

Small Rs. 2,000 per year

Medium Rs. 3,000 per year

Large Rs. 4,000 per year

Extra Large Rs. 5,000 per year

*There will also be a refundable key deposit of Rs. 2,000/

Locker Insured

In an effort to further enhance this service, we have taken out an insurance cover on

your locker for an amount up to Rs. 1,000,000.

Locker Insurance Coverage

Small Rs. 500,000/-

Medium Rs. 750,000/-

Large/Extra Large Rs. 1,000,000/-

This insurance plan provides cover on the following risks

Robbery

Fire

Natural Calamity

Vandalism

Terrorism

Applicable on each locker.

Only events that take place in the locker area are covered under this scheme.

48

RBS ISLAMIC BANKING

The emergence of our RBS Islamic banking has made banking easy for customers

interested in financial products and services which are in harmony with their religious

beliefs. RBS understands the needs of our local communities, and our RBS Islamic

Banking brand is able to meet customers' desire for Shariah Compliant Solutions.

DEPOSIT

Our Islamic Banking Deposit Products illuminate your choices by providing you

Shariah Compliant Solutions for a simple reason: we value what you believe in. At

RBS Islamic Banking, we bring together products and services that comply with not

just your needs but also your beliefs.

Saving and Term Deposit Accounts at RBS Islamic Banking have been developed

under the Islamic Banking principles: Mudarabah and Musharakah. In this

arrangement, the depositors are “Raab-ul-Maal” (investors) and the Bank is the

“Mudarib” (the Fund Manager) and in some instances the Investor as well.

49

How do Savings and Term Deposit Accounts work?

In simple words, our Deposit products are structured in a way that the Savings and

Term Deposits from our Clients go into a pool of funds maintained by the Bank. RBS

Islamic Banking, as the Fund Manager (Mudarib) invests these funds into Shariah

Compliant assets / investments and the resulting profit is distributed between the Bank

and Depositors according to pre-defined ratios and weightages. In some cases, the Bank

may also invest its funds in the pool and become a partner with the Depositors within

that pool. Thus, Savings and Term Deposit Accounts function under a hybrid

arrangement of Mudarabah and Musharakah.

How do Current Accounts work?

A Current Account is operated on the basis of “Qard”; where the funds from the

Depositors are treated as a loan for the Bank and no profit of any kind is payable to the

Depositors but the principle is guaranteed and payable to the client on demand.

Profit Sharing Mechanism Explained

For example, assume we have five categories of Depositors that hold the following

account types: (i) Savings (ii) 1 Month Term Deposit (iii) 3 Months Term Deposit (iv)

6 Months Term Deposit (v) 1 Year Term Deposit

The Bank receives a total of Rs. 20,000 from these five categories of Depositors and

each category is assigned a specific weightage:

Category Deposit (Rs.) Weightage

Savings 3,000 0.1

1 Month 1,000 0.3

3 Months 3,000 0.5

6 Months 6,000 0.6

1 year 7,000 0.7

Total 20,0000

The profit earned by investing the funds in Islamic assets / investments is distributed

between the Bank and the depositors according to weightages announced at the start of

the month.

50

As an illustration of profit distribution ratio* between RBS Islamic Banking and

the Depositors, we assume that the ratio is equal (i.e. 50 / 50 as shown in the

table below) and the earned profit is Rs. 4,000, for that month. Thus, the profit

will be distributed as follows:

Islamic Banking Rs. 2,000/

Pool of Depositors Rs. 2,000/

RBS Islamic Banking may also invest its own funds in the pool and in that case will also get a share in the

distributable profit like other Depositors. Furthermore, the profit of Rs. 2,000 will be distributed within the

Depositors based on the assigned weightages in the following manner:

Category Deposit (Rs.) Weightage Weightage

AverageProfit Rate*

Savings 3,000 0.1 300 57 1.89%

1 Month 1,000 0.3 1,500 57 5.66%

3 Months 3,000 0.5 3,600 283 9.43%

6 Months 6,000 0.6 4,900 679 11.32%

1 year 7,000 0.7 10,600 924 13.21%

Total 20,0000 2,000

*The above profit rates and profit distribution ratio (Mudarib fee) are for illustration

purposes and are not the indicative profit rates of RBS Islamic Banking. The

weightages of RBS Islamic Banking will be announced on preset dates.

Concept of Weightages

The concept of weightages is being used by Islamic Banks because we face the

challenge of distributing profits among a wide variety of Depositors with varying

tenures and amounts. Depositors continually close their accounts or decrease their

balances with the Bank. In order to tackle this, the Bank assigns a weightage to a

specific deposit based on its amount and the tenure so as to create a balance in profit

returns, to these various deposit categories.

Loss Sharing between the Bank and the Pool

51

In case of a loss, as per the Islamic Financing principle of Mudarabah the loss will be

borne by the Raab-ul-Maal (Depositors) while the Mudarib (RBS Islamic Banking) will

get nothing for its effort which will in turn be a loss to the Bank.

HOME FINANCE

With our Islamic Banking Home Finance, your dream of owning a

house becomes a reality.

Islamic Banking Home Finance uses the Islamic mode of Diminishing Musharakah to

offer you a bouquet of benefits and services. We guarantee you the fastest turnaround

time in the market. Your dream of a new house comes true with us, with maximum ease

that is the hallmark. Choose the Home Finance option that best meets your needs and

let our Islamic Banking make your dream come turn.

Islamic Banking Home Buyer

Islamic Banking Refinance

Islamic Banking Home Builder

As our Islamic Banking Home Finance customer, you are also entitled to the privileges

of a complete banking relationship, such as:

Deposit Accounts

Lockers

Non-Stop Banking Services

Eligibility Criteria

You must be a Pakistani, between 25-62 years of age and residing in Karachi,

Lahore, Islamabad, Rawalpindi, Faisalabad or Multan.

You must be in continuous employment, for two years or more, at the time of

application.

Alternatively, you must have evidence of 3 years or more of business or

professional experience.

ROYAL PREFERRED BANKING

52

Embracing dedication, individuality and innovative ideas, Royal

Preferred Banking represents the highest standards of relationship

banking.

Royal Preferred Banking represents a new standard of relationship banking, which has

been expressly created to offer an enhanced level of service to demanding individuals.

Attention is given to every fine detail in the crafting of innovative products and lifestyle

solutions for our Preferred Banking clients.

Our value proposition

Royal Preferred Banking offers its clients an unmatched blend of personalized banking

and wealth maximization opportunities.

Our products

Alongside a comprehensive range of premium banking products and services, we offer

fully integrated financial planning and investment advisory capabilities.

Your privileges

From luxurious lounges to personalized attention, Royal Preferred Banking delivers its

clients exclusive services.

Speak to our relationship manager

Ready to apply? Simply call or visit one of our Royal Preferred Banking Centres

Products & Services

RBS Royal Preferred Banking believes in premier service delivery and going an extra

mile to bring superior standards that our clients can truly appreciate. The RBS Royal

Preferred Banking brand goes beyond financial solutions and aims to offer clients a

privileged lifestyle which they can truly value and associate with.

CORPORATE INSTITUTIONAL BANKING

53

In late 2007, RBS successfully led the consortium bid for ABN AMRO. Building on

our already extensive relationships with corporates, financial institutions and

governments in Europe, North America and Asia Pacific, the ABN AMRO transaction

will extend our presence to more than 50 countries, improving our ability to meet your

needs around the globe. This integration will bring considerable strengths in equities,

corporate finance/advisory, emerging markets and transaction banking (cash

management and trade finance)

Building a commitment to Pakistan

Having been established in Pakistan for 60 years, ABN AMRO have a deep

commitment to providing commercial and consumer banking services in the country.

Their acquisition of Prime Bank in 2007 widened their range of products and extended

their network to Karachi, Lahore, Islamabad and Rawalpindi. Today, ABN AMRO are

the second largest foreign bank in the country 1 bringing you deep market knowledge

and a broad range of contacts.

Delivering tailored products and services

Whether you are a large corporation or a financial institution, you will find that we

combine regional knowledge and global reach to deliver effective solutions 2. We can

offer you a full range of advisory, financing and operational products tailored to your

requirements, including Shariah-compliant products.

1. Finance Asia: Best Foreign Bank in Pakistan 2007

2. Trade Finance: Deal of the Year 2006 (Warid Telecom Pakistan $501m); The

Banker: Deal of the Year Pakistan (Islamic Republic of Pakistan $500m fixed-rate

notes)

54

TRAINING PROGRAMME

I completed 6 weeks of my internship programme at The Royal Bank of Scotland,

Faisal Town Branch Lahore. My internship Programme was very systematic and

organized. On the very first, we were handed over with our schedule for six weeks.

There are about four departments in the said branch. I worked in two of these

departments during this short span and tried my level best to learn as much as I could.

My internship schedule was as under:

Customer services 11th Aug– 30th Aug

Operations 1st Sept – 20th Sept

I worked under the supervision and guidance of experienced officials who were always

very cooperative and helpful. I was about almost all the banking operations being

carried out in that particular branch.

This internship has proved to be a very learning opportunity for me. Whatever have I

learnt during the past two years, I saw the practical demonstration of all of it. It is very

informative to see the theory being put to practice.

CUSTOMER SERVICES

I spend two weeks in Customer services where my supervisor was Mrs. Mehreen

Pasha; she is the Customer Relationship Manager. In customer services most of the

time I have to interact with customers who helped me in learning customer dealing and

taught me how to solve quarries of the customers and solving their problems. I learnt

that how best services are provided to customers. These services include balance

checking, checks confirmation, and issuance of financial statements.

My CRO's were very cooperative they always helped me and guide me about different

things.

55

OPERATIONS

In operation deptt. my supervisor was Mr. Muhammad Ahmad he is the Area Operation

Manager, he is a very cooperative person, I had long conversations with him and he

answered all of my questions and quarries.

In this deptt. I actually saw the execution of most of the banking operations like

opening of an account, closing of an account, change of address of an account holder,

change of signature of an account holder, T.T’s, activation of an account etc.

Account opening

To open an account the customer have to meet the general banking manager with an

introducer (the person who is going go introduce that person in the bank) and get an

application form used for account opening. Different color-coded application forms are

available for each type of account. Along with the form a card for specimen signature

is also supplied to customer. Manager has every right not to accept this contract if he is

not satisfied by the details provided by the customer. In case the contract is acceptable

to both, now it is ready to open the account formally.

Procedure

The procedure begins with the punching of account opening form to the customer file

i.e. customer’s master file. The manager records the necessary details into this register

and allots an a/c number from this a/c opening register. This register is maintained for

each type of account and the a/c no’s are allotted serially. After opening a saving and

current account every applicant’s data is entered into the computer to maintain a safe

record and application form is properly filled so that it can be available when necessary.

Checking officer is responsible to Tele the manual application form with the

computerized a/c opening file. For fixed deposit only that application form is needed

which is prepared manually, because most of the procedure of fixed deposit is done

manually. The signature specimen card contains three signatures of an applicant,

applicant a/c no, a/c type, branch code, title of a/c, it will be attached with an

application form. Banker uses this card at the time when he receives the cherub; he

compares customer’s signature with the signature on the cherub for avoiding fraud.

56

Account closing

There are no. of reasons of closing an account can be one of the following if customer

desire to close his account, in case of death of one account holder, bankruptcy of the

account holder and If an account contain nil balance or not up to the requirement of

rules.

Before closing any account, bank send letter to the account hold for informing him that

his account is going to be closed. There is need an approval form higher authority to

close any account.

Account Transfer

If customer wants to transfer his account to another branch of the same bank then he

submit the request of account transfer. Then the account is transferred to the concerned

branch without any charges.

New branch get the account opening form filled by the account holder but introduction

is not necessary. Branch prepares two vouchers, one for the transferring branch and

other for its own entering.

Cheque Book Issuance

The client has to verify the requisition slip by the relevant officer after

signing the slip. There are two signatures on the requisition slip 1st show

that the account holder gives an order to make printed cheque book and the

2nd signature shows that he receives the cheque book. 2nd signature may be

different.

Then the requisition slip is send to NIFT after receiving the book then it is

necessary to stamp the account number of the client on the each leaf of the

cheque. And then give to the client.

If the client is illiterate then an additional stamp of thumb impression is

necessary on each leaf of the cheque book. It means that such cheque can

only be cashed when the client is present to receive the amount so such type

of cheque can only be cashed by writing pay self instead of bearer or order

cheque.

57

In case in which other then account holder comes to collect the cheque book

then bank officer require the authority letter. If he shows the authority letter

then the officer makes a receiving on the cheques book receiving register.

If the account holder misplaced the cheques book requisition slip then he fill

the form. That contains the name and address of account and order of

cheques book.

In addition to account opening , I did and got knowledge about

Issuance of related cheque books.

Checking of posted batches.

Checking of profit list.

Cheque book handling.

Cheque return

Checking of batch (transfer voucher).

Hence, it was a great experience working in such a prestigious organization. I am sure

the knowledge and skills gained, shall help me during the course of my career.

58

MARKETING MIX

Marketers use numerous tools to elicit desired responses from their target markets.

These tools constitute a marketing mix.

These tools are classified into four broad groups that are called the four P’s of

marketing:

Product

Price

Place

Promotion

From a buyer’s point of view each marketing tool is designed to deliver a customer

benefit.

The seller’s four P’s correspond to the customer’s four C’s.

Four P’s Four C’s

Product Customer solution

Price Customer cost

Place Convenience

Promotion Communication

59

PRODUCT

“It is the combination of goods and services that can be offered to a market to

satisfy want or need.”

Product is the first and the most important element of marketing mix. Product

strategy calls for making coordinated decisions on product mix, product line,

brands, packaging, and laboring.

Cut out to meet the high and varied demands of today’s customer, RBS has an array

of products in the pipeline.

Primary Banking Products

Primary banking products offered by Citibank are

Current Accounts

Saving Accounts

Term deposit Accounts

RBS Debit Card

MORE THAN AN ATM CARD WITH EVERYTHING YOU WANT FROM

A CREDIT CARD

Key Product Features

A world to explore with your Debit Card facility!

Easy way to pay

The Debit Card facility is the perfect alternative to cash. Using a Debit Card facility

saves you the routine and troublesome procedures of actually visiting the bank, or

an ATM location, drawing cash, counting cash and keeping account of your

transactions. It also helps you save valuable time since all transactions are instant

and online.

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Safe and Sound

The Debit Card facility functions on a PIN-based mechanism, which keeps your

cash secure. Since only you know this secret number, it eliminates the chance of

fraud.

Get More for Less

Your daily spending limit on the Debit Card facility allows you to make a purchase

of up to Rs. 500,000 per day, depending on the balance available in your accounts

linked to this facility. In addition to this, you can also withdraw up to Rs. 50,000

per day from each of your PKR accounts linked to your ATM Relationship Card.

Many choices

When using the Debit Card facility, you have the flexibility of paying from three

different accounts! Your Current Account, Savings Account and your BTF account

(for BTF customers only) will all be linked to your Debit Card allowing you a

payment facility like never before.

Feel free to Debit

Who says nothing’s for free? The Debit Card facility is absolutely free. So go

shopping and go wild. Experience the Debit Card lifestyle without paying anything

extra. The Debit Card facility is automatically activated on your existing or new

Relationship Card.

RBS Islamic Banking

RBS Islamic Banking is a client driven institution which provides innovative

solutions to cater to genuine customer needs. Central to our customers is our

commitment towards adherence to Shariah which is evident through all our

practices.

Home Finance

With our Home Finance facility, your dream of owning a house turns into a reality.

Now just think of decorating it.

61

Credit Cards

RBS offers arrange of credit cards which includes:

RBS mc2 Credit Card

RBS Ufone Co-brand

RBS Airblue MasterCard

RBS Car Financing

RBS cherishes the relationship with its customers; you will be accommodated with

assistance from Relationship Managers who will facilitate you through the

procedure until you find exactly what you want. RBS has a vast network of

authorized dealers for the convenience of their valuable customers. You can get the

car from these authorized dealers only.

N’Cash

FULFILLING YOUR NEEDS TO PERFECTION

N’Cash empowers you with financing to fulfill your business needs. N’Cash lends

you a helping hand towards success and growth with ease, peace of mind and

convenience.

Insurance

MAY YOU ALWAYS HAVE IT AND NEVER NEED IT

Insurance is the most unselfish thing you may do for your loved ones.  Our

Bancassurance product menu spans across various lines of insurance and offers

combination of life and non-life insurance plans which are made-to-fit your

personal needs.

PRICING

62

“The amount of money which the buyer has to pay”

The most common and obvious rationale given for the importance of prices is that

price is the only element in the marketing mix that generates revenue; all other

elements are associated with cost.

RBS offers reasonable and competitive rates on all the services it provides to its

customers. Its rates for some products are higher than other banks rate; this fact

surely affects the sale of RBS products. Charges for all the international & domestic

banking services are given in “Schedule of bank charges”.

63

PLACE

This includes the various activities the company undertakes to make the product

accessible and available to the target market.

The Producer does not sell his product directly to final user. Between producer and

user stand one or more marketing channels. Through different channels they capture

the market. For this purpose they select locations for head office and its branches,

which are convenient to capture target market.

The Bank currently operates a network of 79 Branches in Pakistan and Azad

Jammu and Kashmir.

Note:

Branch network of RBS is placed in the annexure.

64

PROMOTION

“Promotion includes activities, communicating the merits of product and includes

the potential buyer to buy it.”

Sales Promotion includes tools for

Consumer Promotion

Samples ,coupons, cash, refund offers, price off, premium prizes, patronage

rewards, warranties , tie-in-promotions, points of purchase displays and

demonstrations.

Trade Promotion

Price off, advertising and display allowances and free goods.

Business And Sales Force Promotion

Trade shows and conventions, contents for sales representatives and specially

advertising.

RBS has a diverse portfolio of product & services. It can capture a huge market

share by marketing its product & services properly.

Bank should allocate more funds in its budget for the advertisement & publicity.

It relies mostly on personal selling like marketers bring deposits on the basis of

their public relationing & contacts.

Bank has vigorous marketing campaign , RBS don’t spend much on

advertisement than other bank although it is an foreign bank with good repute but

this factor effects its sales adversely, it should use different medias like T.V.,

newspapers, magazines etc for its promotion.

65

BALANCE SHEET 2005-2007

2007 2006 2005ASSETS (Rupees in thousand)

Cash 8,785,788 13,088,961 7,379,648

Balance with other banks5,364,040 4,559,454 2,051,677

Lending to financial institutions 6,982,071 3,541,040 1,474,861

Investments 16,438,270 25,609,450 13,026,798Advances 64,468,394 71,843,307 32,926,623Other Assets 2,337,709 2,481,626 1,564,376Operating fixed assets 2,778,942 2,649,002 1,169,152Deferred tax 380,349 - -Total Assets 107,535,563 123,772,840 59,593,135

LIABILITIESBills payable 2,084,367 1,344,304 605,778

Borrowings6,068,028 16,829,893 6,855,784

Deposits and other accounts

90,288,654 93,742,339 47,004,987

Sub- ordinated loans 799,200 799,520 -

Liabilities against assets subject to finance lease

- - -

Other liabilities 3,229,519 2,355,160 966,757

Deferred tax liabilities - 89,183 42,427

Total Liabilities 102,469,768 115,160,399 55,475,733NET ASSETS 5,065,795 8,612,441 4,117,402

Share capital 13,474,364 2,739,372 2,512,632Head office capital account

- 2,558,311 -

Reserves (6,395,647) 2,983,628 -Accumulated loss) / Unappropriated profit

(1,989,575) 418,096 1,616,434

Deficit on revalution of securities

(23,347) (86,966) (11,664)

5,065,795 8,612,441 4,117,402

66

PROFIT AND LOSS ACCOUNT 2005-2007

2007 2006 2005(Rupees in thousand)

Mark-up/return/interest earned 13,003,887 1,108,222 4,416,751

Mark-up/return/interest expensed

(6,778,643) (5,169,104) (1,587,130)

Net mark-up/ interest income 6,225,244 5,939,118 2,829,621

Provision against non-performing loans and advances-net

(3,337,535) (732,868) (419,640)

Provisions for diminution in value of investments (1,887) (277) -

Bad debts written off directly (533,258) (128,247) (12,995)

(3,872,680) (861,392) (432,635)Net mark-up ,interest income after provisions 2,352,564 5,077,726 2,396,986

NON MARK-UP / INTEREST INCOME

Fee, commission and brokerage income 1,519,931 1,459,278 695,619

Dividend income9,990 33,991 -

Income from dealing in foreign currencies 490,959 495,252 311,858

(Loss)/ Gain on sale of securities (298,666) 65,260 (6,812)

Unrealized (Loss) / Gain on revaluation of investmentsclassified as held for trading

(34) 3,750 -

Other income 479,978 363,865 500,497Total non mark-up / interest income 2,202,158 2,421,396 1,501,162

4,554,722 7,499,122 3,898,148NON MARK-UP/

INTEREST EXPENSESAdministrative expenses (5,771,680) (3,872,608) (1,666,224)

Other provisions/write-offs(118,922) (38,473) (430)

Other charges(30,926) (17,529) (41,047)

Total non mark-up / interest expenses (5,921,528) (3,928,610) (1,707,701)

Extra ordinary / unusual items - - -

67

PROFIT BEFORE TAXATION (1,366,806) 3,570,512 2,190,447

Taxation

current(623,505) (1,078,000) (790,000)

Prior years(45,000) (110,000) -

Deferred 470,547 11,797 (92,746)(197,958) (1,176,203) (882,746)

PROFIT AFTER TAXATION (1,564,764) 2,394,309 1,307,701

Unappropriated profit brought forward 418,096 396,215 1,022,753

Transferred to unremitted profits (842,907) - 2,330,454

ACCUMULATED (LOSS)/PROFIT

AVAILABLE FOR APPROPRIATION

(1,989,575) 2,790,524 (714,020)

68

RATIO ANALYSIS

Ratio simply means one number expressed in term of another. A ratio is a satisfied

yardstick by means of which relationship between two or various figures can be

compared or measured. The term accounting ratio is used to describe significant

relationship between figures shown on the balance sheet, profit & loss account or in

any other part of accounting organization. Accounting ratio thus shows the relationship

between the accounting data.

LIQUIDITY RATIOS:

Ratios that measure a firm’s ability to meet short term obligation is called liquidity

ratio.

1. Current Ratio:

Current Assets

Current Liabilities

It shows a firm’s ability to cover its current liabilities with its current assets.

200721131899101670568

=0.212006

21189455114271696

=0.19

2. Absolute Quick Ratio:

Absolute Quick Assets

Current liabilities

It shows a firm’s ability to meet current liabilities with its most absolute liquid

(quick) assets.

2007 66806103101670568

=0.662006 74324933 101670568

=0.73

69

PROFITABILITY RATIOS:

A ratio that relates profit to sales and investment is called profitability ratios.

1. Cost to Total Income:

Total Non Markup/ Interest Expenses

Total Income (Markup and Non Markup)

2007 5921528 8427402

= 70%2006 3,928,610

8360514= 47%

2. Profit Before Tax to Total Income:

Profit Before Tax

Total Income (Markup and Non

Markup)

2007 (1,366,806)8427402

= (16%)2006 3,570,512

8360514=43%

3. Profit After Tax to Total Income:

Profit After Tax

Total Income (Markup and Non

Markup)

2007 (1,564,764)8427402

= (18.56%)2006 2,394,309

8360514=28.64%

70

4. Return On Investment ( Return On Assets):

Net Profit after Taxes

Total Assets

2007 (1,989,575)107,535,563

= (1.85%)2006 2,790,524

123,772,840=2.25%

5. Return On Equity:

Net Profit after Taxes

Shareholder’s Equity

2007 (1,989,575)5,065,795

= (39.27%)2006 2,790,524

8,612,441=32.40%

COVERAGE RATIO:

1. Markup /Interest Coverage Ratio:

Total Return/interest Earned (markup and Non-

markup)

Markup/Return/Interest Expenses

It indicates a firm’s ability to cover interest charges.

2007 152060456778643

=2.24Times2006 13529618

5169104=2.62Times

71

2. Debts to Total Assets: ( Solvency Ratio)

Total Liabilities

Total Assets

2007 102,469,768107,535,563

=0.952006 115,160,399

123,772,840=0.93

3. Reserve to Capital Ratio:

Reserve

Share Capital

2007 (6,395,647)13,474,364

= (0.47)2006 2,983,628

2,739,372=1.09

72

HORIZONTAL ANALYSIS

Horizontal analysis is applied when a firm wants to evaluate performance over time.

Developing trends can be seen by using multiyear comparisons, and knowledge of

these trends assists the organization in planning future operations. Any significant

year to year changes can be evaluated whether they are symptomatic of major

problem.

BALANCE SHEET2005-2007

73

2007 2006 2005

ASSET % age

Cash (32.88) 77.36 8.58

Balance with other banks

17.66 122.23 (78.1)

Lending to financial institutions

97.18 140.09 84.89

Investments (35.81) 96.59 99.7

Advances (10.27) 118.19 2.61

Other Assets (5.79) 58.63 89.9

Operating fixed assets

4.91 126.57 13.62

LIABILITIES

Bills payable 55.05 121.91 (27.28)

Borrowings from financial institutions

(63.94) 145.48 32.59

Deposits and other accounts

(3.68) 99.43 (2.5)

Other liabilities 37.13 143.61 94

PROFIT & LOSS ACCOUNT2005-2007

2007 2006 2005

%ageMark-up/return/interest earned

1073 (74.9) 99.8

Mark-up/return/interest expense

31.14 225.6 208.4

Net mark-up/ interest income

4.82 109.9 66.91

Fee, commission and brokerage income

4.16 109.8 74.9

Income from dealing in foreign currencies

(0.87) 58.8 17.1

Other income 31.91 (27.29) 17.45

Administrative expenses

49.04 132.4 48.38

Other charges 76.42 (57.29) 97.1

Profit / loss before taxation

(138) 63 90.9

Profit / loss after taxation

(165) 83.1 83.2

74

COMMENTS

ASSETS

The level of cash is fluctuating over the years , there was an increase in cash level

in 2006 but in 2007 it has decreased by (32.88 %), 2006 was a successful year for

the bank in all respects , a huge and steady increase in the deposits kept the level of

cash high. But due to decrease in deposits in year 2007, cash level is affected.

Balance with other bank maintained by RBS in 2006 was 122.23 % but it was

decreased in 2007 by 17.66% due to decrease in placement accounts in Pakistan,

and increased current account outside Pakistan. There was an increase in operating

fixed assets in 2006 by 126.57 but in 2007 it is decreased by 4.91 %.

LIABILITIES

Bills payable in the year 2005 was 27.28 % but there was increase in year 2006 by

121.91 % and then again a decrease in 2007 by 55.05 %.

There was a decrease in borrowing from financial institution over the years in 2007.

It is decreased by 63.94%.

Deposits and other accounts were increased in 2006 by 99.43% but then it

decreased in 2007 by 3.68 %.

Other liabilities were increased in 2006 but then there is a decrease in year 2007 by

37.13%.

75

VERTICAL ANALYSIS

An analysis of percentage financial statements where all balance sheet items are

divided by total assets and all income statement items are divided by net sales or

revenue.

BALANCE SHEET2005-2007

2007 2006 2005

ASSET %age

Cash 8.17 10.57 12.38

Balance with other banks

4.99 3.68 3.44

Investments 15.29 20.69 21.86

Advances 59.9 58 55.25

Other Assets 2.17 2.00 2.63

Operating fixed assets

2.58 2.14 1.96

LIABILITIES

Bills payable 2 1.17 1.09

Borrowings from financial institutions

5.91 14.61 12.35

Deposits and other accounts

88.1 81.4 84.73

Other liabilities 3.1 2.05 1.74

76

PROFIT & LOSS ACCOUNT

2005-2007

2007 2006 2005

%ageMark-up/return/interest earned

153.7 132.8 99.8

Mark-up/return/interest expense

80.4 61.8 208.4

Net mark-up/ interest income

73.87 71 66.91

Fee, commission and brokerage income

18.03 17.5 74.9

Income from dealing in foreign currencies

5.82 5.9 17.1

Other income 5.7 4.4 17.45

Administrative expenses

68.49 46.3 48.38

Other charges 0.36 0.2 97.1

Profit / loss before taxation

(16.2) 42.71 90.9

Profit / loss after taxation

(18.56) 28.64 83.2

77

COMMENTS

Cash, investment and advances are the major constituents of total assets. This is

typical for a bank, as bank does not go for creating fixed assets. The advances have

increased considerably, while the investments decreased. As bank is able to reduce

its cost of funds, it might have been able to get AAA clients and lucrative business,

so it prefers to use deposit money for advances, balance with other banks have

increased.

Deposits and bank borrowing is the major heads on liability side. RBS deposits

decreased in 2006 but there is a slight increase in deposits in 2007.

Borrowings from other banks were increased in 2006 but there is a decrease in

borrowing from other banks in 2007. Borrowings adverse affect the cost of funds

but then these figures do not depict the true picture of whole year. Bank should

concentrate on further decreasing these borrowings and mobilizing the deposits.

As compared to the previous years the Bank’s performance of getting profit from

utilizing all of its assets decreasing day by day. So it is not a good sign.

78

SWOT ANALYSIS OF RBS

This SWOT analysis of RBS takes into consideration the external as well as the internal

environmental structure of the bank.

STRENGTHS

The predominant strengths of RBS are

Introduction of new revolutionary banking software.

Introduction of true Islamic Banking.

Branch network is available in main cities of Pakistan.

Online banking network all over the country.

Cash management services for corporate sectors.

Staff is very warm welcoming and they have healthy environment because they

cooperate with each other.

Good relationships with the customers.

.

WEAKNESSES

The chief weaknesses are

Lack of advertising and promotions.

Low investment in mega investment.

IT system is weak.

Extensive paper work for disperse of loans.

High turnover ratio of employees because of low wages then the competitors

and limited benefits.

Slow to introduce new services.

79

OPPORTUNITIES

The opportunities on which RBS can capitalize upon are

A large emerging middle class with growing demand for customer autos,

services.

Financial sector is open to foreign investors is diversified and has been

strengthened in the last three years.

With prospects of an improvement in the operational side as well as the hope

that industrial growth will pick up, banking is looking at a bright future in the

country.

They should open branches in small cities.

Investment in physical Infrastructure Development Information Technology.

Opportunity for Islamic banking to capture the market.

THREATS

The predominant threats RBS is facing at the moment are discussed in the following

lines:

As there are new banks entering in the business, thus this creates more

competitive environment. State bank has issued a circular in which it has made

mandatory for all banks to have a minimum of 100 branches for this reason

many of the new small banks are merging.

There are different type of banks which is providing different services and profit

returns. RBS has devised a product for the customer which provides them with

returns by Islamic modes. It has devised that according to Shariah the profit

should be on profit or loss bases.

80

IDENTIFICATION OF PLAUSIBLE PROBLEM(S)

Lack of advertising

The Royal Bank of Scotland is not focusing on advertising that’s why customers have

no idea about their products and services which they are offering. Due to lack of

advertising, their potential growth is slow as compare to other competitors.

Salary package is low

They are offering low salary package. Due to which Staff is not satisfied to work there

and they are ready to switch over some other companies on a good package.

Parking area is congested

Parking area is not so wide even for staff. So customers have to face lot of problems

during parking. The branch is situated on the main road and customers cannot take risk

to park their vehicle on the main road.

One window system

Due to the one window system for cash counters customers face problems, and they

have to wait for a long time.

81

SUGGESTIONS

After spending six weeks at different departments of the Royal Bank of Scotland,

interacting with the employees, getting their views, observing the organizational

structure and design,. I have come up with the following suggestions that in my view,

will deficiently improve a few weakness observed in the bank by me.

Employee’s motivation

Effective measures should be taken to boost up the morale of employees. Here are some

suggestions to motivate the employees and enhance job satisfaction.

Individual difference should be recognized.

Match people to jobs

Individualize rewards

Check the system for equity

Use goals and ensure goals are achieve

Work Environment

The work environment has a very positive impact on employee’s productivity. The

work environment should be beautified. It should give a very welcoming and lively

impression to the customers.

Service Quality

Proper steps should be taken to improve the service quality. This can be undertaken by

responding to customer needs quickly and courteously.

Internship Programme

For internship programme in future, the officers should be briefed about what they are

supposed to tell the internees. In fact if the internees are provided with the job

description of the respective officers, they can have an idea about what functions are

performed by relevant person and they can directly come to the point of asking

questions about things that do not relate to the respective officer.

82

Various charges

The rates for the various charges provided by the bank should be through down a bit, as

it would result in increase in the number of customers of the bank specially the credit

card transaction charges.

Training and development programs

The bank should place emphasis on the organization of effective training and

development programs for its new as well as existing employees so that these are

gradually updated regarding the recent developments in the field of banking.

Job security

The employees in the organization should be insured job security so that there is no

pressure on the employees while performing their tasks.

Pray rooms

Pray rooms should be made within the branch for the convenience for both male and

female employees.

Parking area

Parking area should be made wide. Branch should also provide security to its customer

in parking areas.

Up gradation

They should go for the Up gradation of computer systems.

Mobile banking

They should introduce mobile banking facility like BANK ALFALAH and MCB etc.

83

CONCLUSION

Banks play very important role in the economic life of a nation. The growth of the

economy is dependent upon the soundness of its banking system. Although banks do

not create new wealth but borrow, exchange and consume. These make generation of

wealth. In this way they become most effective partners in the development of that

country.

Internship was a new experience of work, which was practical and provided learning

curve along with knowledge and skills. Working for six weeks as an intern in The

Royal Bank of Scotland gives me an opportunity to see the banking structure more

closely. Where I worked with the whole staff and learned almost each detail of general

banking and customer care were also my responsibilities.

I understand that the life is about fulfillment of ambitions and realization of our dreams.

RBS wide range of loan products ranging from Auto Loans and Home Finance to

Business and Personal Loans provide luxury backed with affordability to give us the

vision to look beyond. Opportunities at RBS offer a wide scope of learning and

development while providing with a perspective, which is attuned to the global markets

while catering to the local environment.

I have concluded from this detailed report that despite the fact The Royal Bank of

Scotland currently occupies a respectable position in the current market but it does not

guarantee that the company will sustain its position in the future.

During my work tenure I carried out various analyses to determine the financial

soundness and future potential of the bank. My major discoveries were that bank has

made the best use of their assets. Bank is financially strong and has a huge deposit

reserve. According to the SWOT analysis the bank still has a lot of growing up to do;

this includes number of Branches and introducing ATMs (Network) in Islamic

branches, increasing the promotional activities.

84

The top management should immediately start thinking in terms of rotating the

employees in various departments, as this transforms work force into human capital. If

a particular individual keeps on employing his / her efforts in one sphere of banking it

would not only create a sense of monotony and boredom, but also not help improving

the skill set of RBS employees.

There are a disproportionate number of seasoned bankers in the top management who

have the responsibility of making strategic decisions. This think should also include a

reasonable proportion of young bankers whose mindsets teem with new creative ideas,

which might prove to be invaluable for RBS.

One of the most pressing needs of the time is to advertise RBS in the electronic media.

RBS has not, till date, employed advertisement in electronic media as a full fledge

marketing tool. I think it is high time that RBS does this.

Based on my view, In Pakistan as compared to other banks, The Royal Bank of

Scotland has less number of consumer’s market share but as The Royal Bank of

Scotland increases its branches it can increase its share.

Hence the conclusion is that The Royal Bank of Scotland must enhance factors such as

relationship marketing, innovation and technology especially in Pakistan to attain

market leader position in this region as well.

85

BIBLIOGRAPHY

http://www.rbs.com/

http://www.rbs.com.pk/Pakistan/index.htm

http://www.rbs.com.pk/Pakistan/retail/

http://www.rbs.com.pk/Pakistan/islamicbnk/

http://www.rbs.com.pk/Pakistan/rpb/home/en/

http://www.rbs.com.pk/Pakistan/Commercial/index.htm

http://ci.rbs.com/psp/public/pagebuilder.aspx?page=gp1347

http://www.rbs.com.pk/Pakistan/AboutUs/index.htm

http://www.rbs.com.pk/Pakistan/Investor-R/index.htm

http://www.rbs.com.pk/Pakistan/Office-Loc/index.htm

http://www.rbs.com/about03.asp?id=ABOUT_US/OUR_HERITAGE/

OUR_HISTORY/OUR_BANKING_FAMILY

http://www.rbs.com/about98.asp?id=ABOUT_US/OUR_BUSINESSES

http://www.pakistanbanks.org/

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AnnexureBRANCK NETWORK

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KARACHIMain Branch16, Abdullah Haroon Road.UAN: (021) 11-11-22-33Fax: (021) 568 3432Abdulah Haron RoadState Life Building No. 11,Abdullah Haroon Road.Tel: (021) 568 4525, 568 2639 & 568 3981Fax: (021) 568 3975I. I. Chundrigar RoadNadir House, I.I.Chundrigar Road.Tel: (021) 241 8487, 241 8300 - 9Fax: (021) 241 8485Zamzama13 - C, 7th Zamzama Commercial Lane, Phase V,D.H.A.Tel: (021) 587 5323, 587 5401Fax: (021) 587 5404DefenceWorld Business Centre,Main Korangi Road, Phase I, D.H.A.Tel: (021) 580 5182, 580 5170 - 9Fax: (021) 580 5180North KarachiNimra Corner, Sector 12-A,Industrial Area, North Karachi.Tel: (021) 695 8456, 692 0621 -5Fax: (021) 695 6237Paper MarketShahrah-e-Liaquat, Paper Market.Tel: (021) 221 3940, 221 3946 - 7Fax: (021) 221 3941DhorajiSana Pride, 35/244, CP & BerarCooperative Housing Society, Dhoraji.Tel: (021) 413 6551, 413 1421 - 3Fax: (021) 413 6550S.I.T.E.Plot No. B / 9 - B - 2,Estate Avenue, S.I.T.E.Tel: (021) 256 9772, 256 9934 - 43Fax: (021) 256 9771MetrovileST-15, Block-3, Metroville I, S.I.T.E.

Tel: (021) 666 1300Fax: (021) 666 2774Gulshan-e-Iqbal - Block 6FL-2/4, Block 6.Tel:(021) 481 9741, 481 9572 - 6Fax: (021) 481 9744Federal B AreaC-25, Block 17.Tel: (021) 680 0693, 680 0342 - 3Fax: (021) 680 0344Gulistan -e-JauherBilly’s Heights, KDA Scheme No.36.Tel: (021) 402 6833, 402 6826 - 30Fax: (021) 402 6832 Gulshan-e-Iqbal - SB-25, Block 13/C, KDA Scheme No. 24, UniversityRoad.Tel: (021) 499 2055Fax: (021) 497 2270UAN: (021) 11-335-335Shahed-e-Milat72-A/Z, Block 7/8,Al-Riaz Cooperative Housing Society.Tel: (021) 431 1950Fax: (021) 431 0749, 438 2583UAN: (021) 11-321-321North Nazimabad - Block DD4, Block D, North Nazimabad.Tel: (021) 672 1601 - 5, 672 1640Fax: (021) 672 1614Korangi - Islamic BankingKM Centre, 130, 130/1,Main Korangi Road, Phase I, D.H.A.Fax: (021) 531 1441UAN: (021) 11-11-71-72Shahed-e-Milat Road -Islamic BankingSNP, A / 6 - A 1, Commercial Area, KarachiCooperative Housing Society Union Ltd., Union Area,Shaheed - e - Millat Road.Tel: (021) 431 2585, 439 8355 - 7Fax: (021) 431 1658Cloth MarketCloth Market, New Naham Road,

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Off M. A. Jinnah Road.Tel: (021) 247 2704, 247 2616 - 9Fax: (021) 247 2595Jodia BazarNP 12 / 74, Mohammad Shah Street,Jodia Bazar.Tel: (021) 253 3976, 252 2225 - 9Fax: (021) 252 2224Khy-e-Shahbaz43 - C, Khayaban-e-Shahbaz,Phase V, D.H.A.Tel: (021) 534 2388, 534 2364 - 8Fax: (021) 534 2387Kh-e-Itehad8-C, Itehad Commercial Lane 9,

Phase VI, D.H.A.Tel: (021) 535 0274, 535 0268 - 72Fax: (021) 535 0275Tipu Sultan RoadPlot No.110, Zonal Commercial Area, BangloreCooperative Housing Society.Tel: (021) 430 1181 - 85Fax: (021) 430 1187Defence22/C, Lane 2, Shahbaz Commercial,Phase V, D.H.A.Tel: (021) 585 4460Fax: (021) 585 5131UAN: (021) 11-11-338

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LAHOREMain Branch310, Upper Mall,Shahrah-e-Quaid-e-Azam.Fax: (042) 575 1020UAN: (042) 11-11-22-33Gulberg61- Main Gulberg.Tel: (042) 575 7666Fax: (042) 575 311Egerton RoadGround Floor, Building No. 3,Aiwan-e-Iqbal Complex,Egerton Road.Tel: (042) 637 11, 627 8782Fax: (042) 636 8500Defence77-Y, Phase III, D.H.A.Tel: (042) 572 8282, 572 6601Fax: (042) 572 5767New Garden TownAwami Complex, Block No. 2,New Garden Town.Tel: (042) 586 11, 594 0191Fax: (042) 586 9181Allama Iqbal Town20 Gulshan Block,Allama Iqbal Town.Tel: (042) 541 5588, 541 7262Fax: (042) 541 9394Gulberg Industrial Area25-B-2 Gulberg III.Tel: (042) 571 7141-5Fax: (042) 571 8050Township894-D, Faisal Town, PECO Road.Tel: (042) 517 6051-9, 517 6002Fax: (042) 517 6041Circular RoadOutside Shah Alam Gate,Main Circular Road.Tel: (042) 767 0600, 767 0501Fax: (042) 767 0666PIA Town188, Block-F, Phase I,PIA Employees Housing Society,Wapda Chowk.Tel: (042) 518 9011 - 6, 518 9020Cavalry Ground4/5, Hassan Plaza,

Cavalry Ground Cantt.Fax: (042) 665 5591UAN: (042) 11-321-321BaghbanpuraBilal Market, Chowk Shalamar Bagh,G. T. Road, Baghbanpura.Tel: (042) 684 0310 - 5, 684 0318Fax: (042) 684 0316Badami Bagh343-Circular Road, Badami Bagh.Tel: (042) 770 8160, 770 8171Fax: (042) 770 8170Raiwind Road131/178, Bohbatein Chowk,10 K.M. Raiwind Road.Tel: (042) 532 0164, 532 0406Fax: (042) 532 0706Bilal Gunj16, Shahjehan Road, Bilal Gunj.Tel: (042) 721 4084 - 8Fax: (042) 721 4074Gulshan-e-Ravi2/B, Civic Centre, Gulshan-e-Ravi.Tel: (042) 740 4511-6, 630 1107Fax: (042) 740 4517Valancia SocietyA-6, H-Block, Commercial Zone,Valancia Society.Tel: (042) 518 8604 - 5Fax: (042) 518- 8606T-BlockCCA-22, T-Block, Phase II, D.H.A.Tel: (042) 574 9742, 503 3331 &844 5101-3Fax: (042) 574 9741ShahdaraMauza Begum Kot,Sheikhupura Road, Shahdara.Tel: (042) 790 0260 - 1, 790 0268Faisal Town 594-A Faisal Town.Tel: (042) 520 3881 - 4, 520 3892Fax: (042) 520 3880Cavalry Ground - Islamic Banking97 Commercial Area,Cavalry Ground.Tel: (042) 660 3412 - 17Fax: (042) 660 3411

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ISLAMABADMain Branch15 Markaz, F - 7, Opposite FG College forWomen, F-7/2.Tel: (051) 265 1318Fax: (051) 265 1331UAN: (051) 11-11-22-33Blue Area78 - W, Roshan Centre,Jinnah Avenue, Blue Area.Tel: (051) 227 5252Fax: (051) 227 5254

RAWALPINDIMal RoadCentury Tower, 6-The Mall. Tel: (051) 570 1054-6, 570 1060Fax: (051) 556 7016Gunj MandiRaja Bazar.Tel: (051) 553 9115, 553 3315

MIRPUR (AZAD KASHMIR)Sector B/2, Allama Iqbal Road.Tel: (058610) 42 918Fax: (058610) 42 812, 45 832SARGODHAKhayyam Chowk, Railway Road.Tel: (048) 372 6646 - 8Fax: (048) 372 6649GUJRANWALA

Al-Majeed Centre, G.T. Road.Tel: (055) 373 5531 - 5, 373 5337

BHALWAL131-A, Liaquat Shaheed Road,Chak No. 8, Tehsil Bhalwal,District Sargodha.Tel: (048) 664 3671, 664 2405

KHARIANG. T. Road.Tel: (053) 753 6249

PESHAWARAshraf RoadNew Rampura Gate.Tel: (091) 259 3364 - 5 , 259 3164Fax: (091) 259 3165Cant.6 - Sadar Road, Peshawar Cantt.Tel: (091) 527 5156 , 527 5182Fax: (091) 527 3251

QUETTA1-25/14-15, Qandhari Bazar.Tel: (081) 282 0916, 283 7890Fax: (081) 282 0915

VEHARI94-B, Iqbal Road,Behind Grain Market.

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JHELUMOld G. T. Road, Jhelum Cantt.Tel: (0544) 62 1122Fax: (0544) 625 648, 620 404

TURBATMain Bazar.Tel: (0852) 41 3816Fax: (0852) 41- 2673

DERA GHAZI KHANPakistan Plaza, Jampur Road.Tel: (0642) 47 4182, 47 4175 - 7Fax: (0642) 47 4178

SUKKURShaheed Gunj.

Tel: (071) 562 8967Fax: (071) 562 8968

MARDANMain Bazar, Bank Road.Tel: (0937) 87 1761 - 2Fax: (0937) 87 0546, 87 0902

GUJAR KHANPlot No. 204-A, G. T. Road.Tel: (051) 351 6425, 351 6324Fax: (051) 351 6325

BAHAWALPURV/912, Circular Road.Tel: (062) 273 112, 273 115 - 8Fax: (062) 287- 4503

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