Nfi Project
Nfi Project
Pakistan is a poor country most of people living their lives below the poverty line. In this condition micro finance bank is last hope for the revival. Micro finance bank provide short term loan to investors so that they can spend in a useful purposes and can earn a useful return from them. specially as we know that success of each country depends upon the strong footings of the hosue and cottage industry(eg china).so in a country like Pakistan where there is a high inflation and high intrest rates there must be a institution which provide loan to the people at low cost.so that theycan save themselves from sahukars. As far as we people are concerned this assignment is very important for us.As,this will provide us with a better understanding of NBFC with refrence to micro finance.this will provide us with some subjective information which we will implement practically in near future
Backed by a strong banking expertise and an in-depth knowledge of the emerging socioeconomic markets, and driven by a deep and compassionate understanding of the poverty factor, Khushhali Bank Limited is today the largest microfinance institution in Pakistan in terms of coverage. Its operations and impact span across all the four provinces of the country, Jammu and Kashmir and the Federally Administered Tribal Areas. And being a pioneer, born and bred on a solid home ground, Khushhali Bank Limited is fully prepared to offer viable answers to how poverty can be alleviated and optimistically eliminated in the
near future.
Overview of organization
Founded in the year 2000, Khushhali Bank Limited was a part of the Government of Islamic Republic of Pakistan's Poverty Reduction Strategy and its Microfinance Sector Development Program (MSDP). MSDP was developed with the facilitation of Asian Development Bank (ADB). With its headquarters based in Islamabad, Khushhali Bank Limited operates under the supervision of the State Bank of Pakistan (SBP) and many central (commercial) banks are its shareholders. The mandate remains to retail microfinance services and to act as a catalyst in stabilizing the country's newly formed microfinance sector. Vision: To be a premier financial Institution within the microfinance Industry. Mission: To strengthen the economic base of low-Income populace across Pakistan by improving their accessibility to financial services.By supporting a diverse product suite with exemplary service and by deploying cost efficient next generation delivery systems, we intend achieving our core objective of outreach and sustainability.
Values:
Empower Excel Ethics
of
branches:
Shareholders
The shareholders of the Bank are as follow: 1. National Bank of Pakistan 2. Habib Bank Limited 3. MCB Bank Limited 4. United Bank Limited 5. Allied Bank Limited 6. Standard Chartered Bank (Pakistan) Limited 7. Askari Bank Limited 8. Bank Al Habib Limited 9. Soneri Bank Limited 10.Habib Metropolitan Bank Limited 11.Faysal Bank Limited 12.KASB Bank Limited 13.Silk Bank Limited
(164), Drainage & Sewerage (27), School Building (49), Rural Electrification, Computer Centers, PCOs and Community Halls (518).
Scholarship program
In line with overall strategy of Khushhali Bank Limited (KBL) to strengthen its role and brand image in marginalized territories and attract to promote education and enhance accessibility to educational institutions as part of its social corporate responsibility mandate, KBL commenced Khushhali Bank Scholarship Scheme (KBSS) in 2005. A total of 332 scholarships amounting to PKR 76,890,465 have been awarded as of September 30, 09, to domicile holders of Sindh, Balochistan and FATA, of which 244 scholarships valuing PKR 52,548,012 were awarded to domicile holders of tribal areas. A total of 62 students have completed their degrees as of September 09.
Product line
Micro cradit products Agri loans
Details Agriculture Loan Group Based For the purchase of seed, fertilizer, pesticides. For irrigation, rental of agricultural
equipment, transportation etc. Age: 18 58 years, Maximum for repeat clients: 65 years Income: Total annual income is less than Rs.300,000 Permanent resident of the locality for 2 years NADRA NIC Holder 2 years experience PKR 3,000 / 15,000
Loan Amount
Tenure/Repayme 3-12 Months nt Options Quarterly/Semiannual/Annually Guarantors Collateral Cross Guarantees None
Product Features Details Product Name Product Type/Category Product Live Stock Loan Group Based For the purchase of livestock
Description Age: 18 58 years, Maximum for repeat clients: 65 years Income: Total annual income is less than Rs.300,000 Permanent resident of the locality for 2 years NADRA NIC Holder 2 years experience PKR 3,000 / 15,000
Loan Amount
Tenure/Repayment 3-12 Months Options Monthly/Quarterly/Semiannual/Annually Guarantors Collateral Cross Guarantees None
Product Type/Category Group Based Product Description For the purchase of new assets having minimum useful life of one year.
Loan Eligibility Criteria Age: 18 58 years, Maximum for repeat clients: 65 years
Income: Total annual income is less than Rs.300,000 Permanent resident of the locality for 2 years NADRA NIC Holder 2 years experience Loan Amount Tenure/Repayment Options Guarantors Collateral PKR 3,000 / 15,000 3-12 Months Monthly/Quarterly/Semiannual/Annually Cross Guarantees None
Product Features Product Name Product Type/Category Product Description Loan Eligibility Criteria
Details Working Capital Loan Group Based For managing a running business Age: 18 58 years, Maximum for repeat clients: 65 years Income: Total annual income is less than Rs.300,000 Permanent resident of the locality for 2
years NADRA NIC Holder 2 years experience Loan Amount Tenure/Repayment Options Guarantors Collateral PKR 3,000 / 15,000 3-12 Months Bullet/Quarterly/Semiannual/Annually Cross Guarantees None
Details Product Features Product Name Product Type/Category Product Description New Business Loans Group Based for both rural and urban For establishment of new business. Age: 18 58 years, Maximum for repeat clients: 65 years Income: Total annual income is less than Loan Eligibility Criteria Rs.300,000 Permanent resident of the locality for 2 years Resident for 2 years NADRA NIC Holder Loan Amount PKR 3,000 / 15,000 3-6 Months Tenure/Repayment Options Equal Monthly Installments Guarantors Cross Guarantees
Product Features Product Name Product Description Insurance Coverage of Eligibility Period Covered Sum Insured
Details KBL Micro loan insurance Scheme Credit Life Insurance Death / Permanent Disability of Borrower All eligible borrowers Equal to loan term Outstanding Loan Amount
Current account:
Product Features Product Name Product Description Cheque Books Eligibility Criteria
Details Khushhali Bank Current Account Current Account (non-interest bearing) Available (conditions apply) Age: 18 years and above NADRA NIC Holder/Valid Pakistani Passport 2 Passport Size Photographs, terms apply Rs.50. Rs. 500
Remittance: Product Features Details Product Name Khushhali Bank Remittances Product Description Demand Drafts (DD), Pay Orders (PO) and Inter Branch Funds Transfer. Fees & Charges Please refer to our current schedule of charges
Employed Joint / Group Sole Proprietors / partnerships Public & private Companies Institutions non - Govt.) Target Group Minimum PKR 10,000 Issueable in multiple of PKR. 10,000 Maximum per instrument value PKR. 100,000 Product Range Minimum PKR 10,000 Issueable in multiple of PKR. 10,000 Maximum per instrument value PKR. 100,000 Product Tenure Offered One month Three Months 6 Months One Year (Govt.
industry in pakistan is confined to some backward areas such as cholistan and some of the tribal areas.Although Khushali bank have no such cluster of branches in such areas.the faliure of loan may be due to the low development of the livestock sector in Pakistan. New products such as term deposit certificate have been introduced by the Khushali bank as a step forward to full banking service.its offers a good rate of return on the TDR certificates.the edge that khushali bank gets over the commercial banks in this regard is the minimum amount through which a term deposit certficate can be purcahsed.this product has a very good future.
2. IT department IT team has a challenging role in term of role out of integrated banking application acroos network.
Plans include conversion of 2/3rd of our network on an integrated banking application system in 2011,while remaining branches would follow in the next year.
3. Full banking services Khushal bank is going to start full service banks in Pakistan.now the KB has some branches offering products like commercial banks.this is the main objective of the Khushali bank for the future.
0.8% 2.6%
0.4% 1.3%
4.9% 17.9%
3.9% 14.8%
Operational Self Sufficiency (OSS) Operating Expense/GLP % Personnel Expense/GLP % Borrowers per Staff Savers per Staff
150 95
165 37
156 2
152 -
Branche s 114 83 40 27 17
Borrowers Advances Deposits Asset 352743 204301 104726 18142 8113 6224 14 694263 4129635 3181759 2835506 449178 109214 84251 726 10790269 198782 5291011 2296135 474050 28125 40686 23221 8352010 6620837 6051049 4136529 1271234 719455 278122 122826 1920005 2
Borrowing Equity 4019160 513379 300000 4832539 223074 6 523428 108968 6 402065 677300 230747 96963 525097 5
We recorded a profit before tax of PKR 188 million forthe year 2010 which is lower than last years of PKR 252 million primarily as a result of fall in non-core grant Income from PKR 250 million to PKR 98 million. The bank continues to pursue a sustainable growth strategy with reliance on core business reducing grants/subsidies and the overall sustainability indicators reflect improvementfrom 99% last year to 105% in 2010.The devastating floods of August 2010 affected a large part of the branches and business in some of the mostpotential areas of the country, and correspondingly suppressed growth in portfolio and revenues. However,a comprehensive risk mitigation mechanism is in place to monitor and address the situation and was successful incurtailing the impact to a large extent in 2010 and efforts will continue in the next year as well.The conversion of branches to full service banking continuesas per plan while simultaneously moving onto a new corebanking platform providing capability to develop newproducts & services and pursue new business avenues.This is supplemented by strengthening of our businessfaculties resulting in upsurge in retail deposits that willprovide funding at competitive costs for future growth and profitability.
For khushali bank clients loyalty is the long term financial success.KB has the strong customer base with some of their regular customers.it also offer some benefits for their regular customers.clients who are loyal to the organization create good word of mouth for the organization which will increase customers for the KB.KB main focus through the start of its operation is to create the loyalty of the customer
Employee recognition
In khushali bank there is a culture of appraising employees on regular basis.in addition to the recognition at the site,it also publish a newsletter outreach on a quarter basis.KBL management conrajulates their employees on their well deserved promotion
Refresher trainings
Khushali bank offers regular training programs for their employees,which will increase efficiency and thus effect the overall profitability of the organization.the best example is the certified bank teller program.specially with the FSB program emergence it is the need of the hour to have your employees trained.All the ROM and OM were trained as master trainers
Summary
Founded in the year 2000, Khushhali Bank Limited was a part of the Government of Islamic Republic of Pakistan's Poverty Reduction Strategy and its Microfinance Sector Development Program (MSDP). MSDP was developed with the facilitation of Asian Development Bank (ADB). With its headquarters based in Islamabad. It deals in no of microfinance and full banking services product like agri,new bussiness,working capital needs,livestock loan and full banking product constitutes of current account,term deposits certificates and remmitance facilites.it got a good depositor and borrower base as compared to other micro finance institution in the field and lead the industry in key financial indicators.the bank also involves in non financial performance such as emplyee training and recoginition.khushali bank provide their employee a good working envoirment,it also contribute towrds the commercial and developmental role.Khushali bank looking forward to have some improvement in their HR department IT department and conversion of its branches to full banking facility.in short Khushali bank is playing a vital role in the economic development of the country by increasing the productivity and reducing the poverty which is the main problem of our country. Recommendations Open the branches in rural areas Support the community based loans Formulate incentive program for their employees There are many alliances of KB it must reduce its dependency on others Providing employees to latest technology so that they can urge potential customers in a proper way.(for E.G videos on large screen such as success stories)