It has not so far been decided as to how the word ‘Bank’ originated. Some authors opine that this word is derived from the words ‘Bancus’ or Banque’ which mean a bench. Other authorities hold the opinion that the word ‘Bank’ is derived from the German word ‘Back’, which means ‘joint stock fund’. It is therefore, not possible to decide as to which of the opinion is correct, for no record is available to ascertain the validity of any of the opinions The term bank is being used for a long time yet it has no precise definition.
The basic reason is that the banks perform not just one but many types of functions originally the banks were supposed to make short term loans to the traders only. The banks now not only make short term loans to the formers, traders , industrialist etc. But also invest in a wide variety of long term earning assets. The commercial banks also undertake and execute trust, deal in stock, shares and debentures, issue guaranties and indemnities underwrite and sell new securities, and deal in foreign exchange etc.
Banking industry acts as life-blood of modern trade and commerce acting as a bridge to provide a major source of financial intermediation. However some of the definitions of bank from different authors are as follows. Depository financial institution: a financial institution that accepts deposits and channels the money into lending activities; “he cashed a check at the bank”; “that bank holds the mortgage on my home According to Dr. Hart “Banker or bank is a person or company carrying on business of receiving money and collecting drafts for the customers subject to the obligation of honouring cheques drawn upon them from time to time by
customers to the extends of the amounts available on their currents accounts” ? In the words of G W Gilbert “A banker is a dealer in capital or more properly a dealer in money. He is an intermediate party between the borrower and lender. He borrows one party and lends to the another” TYPES of BANKs •Central bank or state bank. •Commercial bank. •Exchange bank. •Industrial bank. •Agriculture bank. •Investment bank. •Saving bank. CENTRAL BANK Every country has its central bank or state bank. Its major function is to carry out a country’s monetary policy with an aim to safeguard its financial and economic stability.
It has the monopoly of note issue. It is also the custodian of money market. State bank is the Banks bank and lender to the government. COMMERCIAL BANK Commercial banks are profit earning concerns. They receive deposits and advance loans to the borrows. They greatly help in financing for internal and external trade of the country. EXCHANGE BANK The main function of the exchange bank is to finance the foreign trade by the purchase and sale of foreign currencies in the form of drafts, bills of exchange, telegraphic transfers. They also perform the function of commercial bank. Receiving deposits and advancing loans.
INDUSTRIAL BANKS Commercial bank cannot afford to block their funds in long term investments. The industrial banks receive long term deposits and finance the industries by providing them long term credits. In Pakistan the Industrial bank named as Industrial Development Bank of Pakistan (I. D. B. P) was established in 1961 for this purpose. AGRICULTURAL BANK Agricultural bank provides short and long period loans for financing agriculture. The agriculturists need short and long term loans for meeting their day to day and long term requirements for making permanent improvement in the land.
In Pakistan Agricultural Bank is named as Agricultural Development bank of Pakistan (A. D. B. P) and it was established in 1961 INVESTMENT BANK The main function of investment bank the merchandising of shares and other securities, managing and distributing the issue of shares and other securities. SAVING BANKS These are the institutions which are sponsored by the government for having facilities to the people and small means. These bank collect small saving of people and allow them to withdraw in small amounts. Also another institution i. e.
National Savings is working in the same capacity. STATE BANK OF PAKISTAN:- The State Bank of Pakistan is the central bank of the country. Usually the starting point for a central bank is a banking system that is already in place – the banking system necessitates the presence of a central bank. But the State Bank of Pakistan (SBP) is unique in the sense that it started its function in a newly born country, where it also had to shoulder responsibilities of developing and rehabilitating a banking system and the economy, in addition to the traditional central banking functions.
Performance of the Bank since its inception in 1948, as reviewed in subsequent pages, shows that it has faced all the challenges with a great zeal and commitment. The founders of the Bank set a multi-dimensional target before it that included not only regulation of the monetary and credit system but also the growth of this system. The vision of its founders was a stable monetary system in Pakistan with fuller utilization of the country’s productive resources (SBP Act, 1956). In order to achieve the goals set before it, the State Bank of Pakistan performed all the traditional and non-traditional functions.
The traditional functions, which are generally performed by central banks all over the world, are classified into two groups; •The primary functions including issue of notes, regulation of the financial system, lender of the last resort, and conduct of monetary policy, •The secondary functions including management of public debt, management of foreign exchange, advising the Government on policy matters, anchoring payments system, and maintaining close relationships with international financial institutions. Overview of the organization:-
•Vision Statement To provide quality and innovative range of banking services and products to our customers by a highly motivated team of professionals whilst maintaining high ethical and regulatory standards thereby, generating sustainable returns to our shareholders. •Mission Statement To be a preferred partner of our customers by providing complete financial solutions exceeding service expectations, though a single relationship via conventional and non – conventional, conveniently accessible distribution channels. •About J. S
JS Bank Limited has been formed after the merger and amalgamation of Jahangir Siddiqui Investment Bank Limited and commercial banking operations of American Express Bank Ltd Pakistan. JS Bank Limited commenced operations in Pakistan as a fully scheduled bank on December 30, 2006. JS Bank Limited also has a Primary Dealer license for government securities from the State Bank of Pakistan. JS Bank’s focus is to provide a quality and innovative range of banking services and products. The Bank’s key activities can be categorized into three Business Units: •Retail and Consumer Banking
•Treasury •Corporate & Commercial Banking •Investment Banking Presently JS Bank has laid its footprint across metropolises of Pakistan with plans to expand its outreach with more branches nationwide this year. JS Group controls and operates market-leading financial services companies in Pakistan across sectors including asset management, commercial banking, Islamic banking, insurance, investment banking, financial advisory services, stock brokerage, company research, consumer credit rating, factoring and micro finance.
JS Group also has investments throughout Pakistan’s economy, including its industrial sector, technology & media sectors, commercial real estate, energy & natural resources and aviation. INVESTMENT IN PAKISTAN INDUSTRY:- As Pakistan’s macroeconomic performance continues to improve, Pakistan industry has gone through steady expansion in its capital investment base and production capacity in the last five years. Given Pakistan’s comparatively small industrial base, the investments across many industrial sectors is significant.
There are several industrial sectors which we believe offer particulary attractive investment opportunities. Pakistan’s companies are becoming increasingly global in outlook. Through exploiting Pakistan’s comparative cost advantages in certain sectors, these businesses are able to drive significant and sustainable growth. In some areas of the economy, Pakistan has a high standard of infrastructure for an emerging market economy. However, there are a number of infrastructure bottlenecks which provide exciting development opportunities as Pakistan’s economic performance continues to accelerate.
JS Bank is part of JS Group, one of the largest and most high profile business and financial services groups of Pakistan with interests in a diverse range of areas like financial services, insurance, banking, transportation, information technology, energy, agriculture and media. JS Bank was formed on January 1, 2007 from the amalgamation of the Jahangir Siddiqui Investment Bank (JSIBL) and American Express Bank Pakistan Operations.
Since then JS Bank has emerged as one of the fastest growing and most dynamic banks in Pakistan, deploying one of the fastest roll-outs in areas like network expansion, alternate delivery channels as well as new product introductions. JS Bank was formed as a result of the amalgamation of the Jahangir Siddiqui Investment Bank (JSIBL) and American Express Bank Pakistan Operations. This was a very unique mix of a leading local business group taking over what was the oldest multi-national bank in Pakistan with over half a century of experience of working in the Pakistan market.
While these two banks had very different outlooks, they had huge complementary synergies as they brought together an extremely talented pool of people who had the experience of both corporate and investment banking as well as high end retail banking services such as Wealth Management and Cards. Therefore the vision of JS Group since day one was that this bank would take advantage of this diversely talented resources and grow in both scale and outreach to become a significant player in Pakistani banking. Service and Technology both are key components of JS growth strategy.
The meteoric growth that have witnessed would not have been possible without these two primary areas. However, it is extremely important to us to ensure that whatever we offer our customers has to be backed by the best possible service and support infrastructure and must provide real value to their overall experience of banking with us. This primal thought holds true for everything from must-have services like branches and ATMs to value added services like Branchless and Internet banking, both of which we hope to launch in the near future.
Today the Pakistani banking customer has both the choice and the exposure to a wide range of options in the market. The growth in media particularly satellite television has broadened people’s knowledge of banking services available around the world and that has made them more discerning. Having said that there is huge potential particularly in tier II and III cities as consumers are becoming more aware of high technology banking products and the support structure necessary for such services like broadband Internet and Mobile Telephony is being made available.
All this is creating a huge market for technology services as customers are willing to subscribe to these services due to the matchless convenience and efficiencies that they offer. This makes it a key growth area for JS Bank however as I mentioned we will broaden our offerings in the technology sphere in a phased and gradual manner in line with our overall strategy to ensure impeccable service provision and value addition. JS FINANCIAL:- JS&Co is one of the largest investment firms in Pakistan and heads a diversified financial services group. JS&Co has a tradition of leadership and excellence.
It was Pakistan’s first securities firm with a Wall Street pedigree through its joint venture with Bear Stearns & Co. JS&Co is rated AA (long term) and A1+ (short term) by the Pakistan Credit Rating Agency and issued Pakistan’s longest-dated (10-year) corporate bond. KEY MANAGEMENT Key Management: Basir Shamsie Group Head Treasury & Investment Banking Mr. Basir Shamsie joined the Jahangir Siddiqui Group in 1994 and presently heads the Treasury & Investment Banking of JS Bank Limited. Before joining the JS Group, he worked in the Finance function at Upjohn Pakistan.
Mr. Shamsie has received his Bachelor in Business Administration with a major in Accounting from University of Texas at Austin, USA. He is a graduate of Program for Leadership Development from Harvard Business School, USA. He has attended training programs on Private Equity, Derivatives in Emerging Markets and various programs on Bond and Fixed Income Markets. By virtue of his vast experience in the Money and Bond Markets with the JS Group, Mr. Shamsie serves as Team Leader for all Fixed Income origination and syndications in which JSBL serves as Advisor & Arranger.
Since 1999, he has successfully led and closed 27 debt capital market transactions, many of which have been landmark transactions such as the first commercial paper, first floating rate instrument, first perpetual bond, first bank subordinated debt, first 10-year corporate bond, and the first local Sukkuk Bond of PKR 8 billion for WAPDA. Karim Sultanali Group Head Corporate & FI Banking Mr. Karim Sultanali holds a Masters Degree in Business Administration from Institute of Business Administration (IBA) Karachi and is also a qualified Chartered Financial Analyst from CFA Institute USA.
He is a Diplomaed Associate of Institute of Banker Pakistan Mr. Sultani has almost 19 years of diversified experience in the banking industry. Prior to joining JS Bank, he was working with Arif Habib Bank as Executive Vice President and Head of Credit Division. He started his professional career in 1990 from ANZ Grindlays Bank plc as Relationship Manager, Corporate Banking. Then he joined Societe Generale Bank as Senior Manager Corporate Banking in 1991 and over a period of time, assumed the responsibility of Head of Corporate Banking.
For a brief period he had also worked in Habib Bank Limited as Senior Credit Officer in their International Banking Group. M. Khalil ur Rehman Chief Operating Officer Mr. Rehman is a senior executive with over 31 years of diversified experience in banking (operations and reengineering). He has been associated with American Express Bank since 1993 and has held various positions in credit administration and operations in different cities. Prior to this, he has worked at Mashreq Bank Limited and United Bank Limited. Mr.
Rehman is a Certified Business Process Reengineer from the United States and is also a Diplomaed Associate of the Institute of Bankers Pakistan. Mr. Rehman received his Bachelors in Commerce from the University of Punjab and completed his Masters in Commerce from Hailey College of Commerce. Kamran Jafar Group Head Retail Banking A seasoned Banker with thirteen years of a proven track record in Banking, Mr. Kamran Jafar began his career with JS Bank in February 2008 as EVP / Regional Head Retail Banking – (North).
He joined as a member of the Retail Banking Core Business Team and was instrumental in the countrywide roll-out of the Bank’s branches and product suite. He took over responsibilities as Branch Banking Head, along with the additional responsibility of Group Head Retail Banking in July 2010. He has since then been the driving force of the effort to ensure that the Retail Banking Group continues with its expansion and successful drive towards countrywide profitability. Prior to joining JS Bank, Mr.
Jafar has had over 10 years of diversified Banking experience in a number of Banking functions such as Retail Banking, Corporate Banking, Branch Banking, Trade and SME Banking. He also has a sound knowledge of Banking Operations including Branch Operations, Credit Administration and Trade Financing. He has worked with a number of Banks including PICIC Commercial Bank, MyBank and the AlBaraka Islamic Bank in a variety of roles. His previous assignment before joining JS Bank was with MyBank where he was EVP / Regional General Manager – Northern Region.
Mr. Jafar is a graduate of the University of Houston with a concentration in Marketing and holds two Masters in Business Administration degrees with concentrations in Marketing, Banking and Finance. Muhammad Yousuf Amanullah Chief Financial Officer & Company Secretary Mr. Muhammad Yousuf Amanullah is a Chartered Accountant from the Institute of Chartered Accountants of Pakistan in 1999 and a Cost and Management Accountant from the Institute of Cost and Management Accountants of Pakistan in 1998.
He joined JS Group in July 2003 in the capacity of Chief Financial Officer of Jahangir Siddiqui Investment Bank Limited (JSIBL). From May 2004 till December 30, 2006, he worked in the capacity of Chief Executive Officer of JSIBL. He has also worked with A. F. Ferguson & Co. Chartered Accountants in Managerial Capacity from February 1, 1999 to June 30, 2003. During his association with the firm, he was involved in various Statutory and Special assignments relating to Commercial banks, Non Banking Finance Companies, Pharmaceutical and Automobile sectors.
He has also attended training programs on private equity, Performance under pressure and Analytical review of Financial Statements. Mamoon Hameed Farooqui Group Head Credit & Risk Management Mr. Mamoon Hameed Farooqi has 42 years of diversified banking experience and has various banks on his resume, like UBL, BCCI, PICIC Commercial Bank and NIB. He spent major part of his career in Credit & Risk function in above banks. Besides Credit & Risk, he also has working experience in Branch Banking and Credit Admin functions.
Muhammad Iqbal Saifi Group Head Internal Audit & Inspection Mr. Muhammad Iqbal Saifi did his MBA from IBA in 1968 and also did DAIBP in 1979. Mr. Saifi has 42 years of diversified banking experience and has various banks under his portfolio like Habib Bank, BCCI, Union Bank, PICIC Commercial Bank and Bank Alfalah. He spent major part of his career in the Audit function, but has also worked in Finance, Operations, Information Technology, Syndicated Financing and Credit function.