banking issues in pakistan
TRANSCRIPT
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In the name of ALLAH the Most beneficent & theMost Merciful
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Banking Issues
Assigned By :
Presented By :
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Introduction
To be discuss some Issue with current information in banking.These Issues are about:
Profit on saving account
Withdrawal Limits on saving account.
Short term and long term loan.Rate of interest on loan
Secure Loan
Intra Bank cheque.
Interest Rate decrease in Monitory Policy 2012.
Punishment on Dishonoring of Cheque.
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Important Issues
Which Bank Providing highest Markup on Saving Account?
Withdrawal limit on saving account.
Tenure of short term and Long term Loan and Difference in
their rate of interest. Issues of rate of interest.
Secure loan under bailment of property documents.
Issue of Intra Bank Cheque.
Views on Rate of Interest decrease by State Bank Of Pakistan.
Dishonouring of Cheque
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Highest Markup on Saving Account
Bank Name Rate of Interest
Meezan Bank 5% On Average monthly minimummaintaining balance
United Bank Limited 6% On Average monthly minimummaintaining balance
Habib Bank Limited 7.19% On Average monthly minimummaintaining balance
Faysal Bank 5% On Average monthly minimummaintaining balance
MCB 6% On Average monthly minimummaintaining balance
Standard Chartered 6% On Average monthly minimummaintaining balance
Summit Bank 9.5% On Average monthly minimummaintaining balance
List of Rate of Interest on Saving Account of Different Bank:
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Chart of Rate of Interest:
5%
6%
7.19%
5%
6% 6%
9.50%
Meezan Bank United BankLimited
Habib BankLimited
Faysal Bank MCB StandardChartered
Summit Bank
Rate of Interest
Rate of Interest
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Highest Interest Rate:
Summit Bank provide Highest Interest Rate on
Saving Account i-e 9.5%Reason:
Summit Bank is a new Bank in Pakistan. As everyBank wants to captured more and more customer so
thats why Summit Bank attracts customer to open
their account in Summit Bank by providing them
highest interest rate.
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Withdrawal Limit on Saving Account
Withdrawal limit on Saving Account in Mostly Bank is
unlimited except of Habib Bank limited.
Habib Bank restricted their customer to maintain at least Rs.
20,000 in their account other wise they will charge.
You can withdraw any amount from your saving account, as in
current account.
But the profit given to customers by bank is on average
monthly maintaining balance.
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Short Term & Long Term Loan
Short Term Loan:
Short term Loan is a loan which tenure is One Year.
You have to pay the Loan in one year.
In some Banks Tenure of Loan is 1-5 Years
Interest Rate on Short Term Loan:
Interest Rate fix
Interest Rate keep high as compare Long term loan.
Tenure is 1-5 Year.
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Long Term Loan:
Long term Loan is a loan which tenure is more
then One Year and may be 5-20 years.
Interest Rate on Long Term Loan:
Interest Rate keep low as compare Long term
loan. Tenure may be 5 years to 20 years.
Short Term & Long Term Loan
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Issues of rate of interest.
Interest rate on Secure Loan (Long Term Loan).
KIBOR+4.6%=Applicable Rate
Annually
Compound Interest
Tenure 5-10 years
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Issues of rate of interest.
Interest Rate on Personal Loan ( Short term)
Tenure 1-5 Years
Applicable Rate = 25-30% (Vary with Customers)
Upper limit = 25%
Lower Limit = 30%
Hidden Charges:
Late Payment Charges: Rs. 1000
Pre-Payment Penalty= 5% of outstanding Principle
balance
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Chart Of Interest Rate on Personal Loan
Consumer Segment Personal Loan
Income Tenure Rate
Top up
replenishment
10000-11999 1-3 yrs 28.99%
>12000
1-3 yrs 25.99%
4-5 yrs 28.99%
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Loan to Value (of property) till 70%
Bank is liable to sell the property in case of non
payment
Owner ship transferred to the Bank is case to nonpayment.
Bank sell property through auction to recover their
amount. No payment will be return to unpaid borrower in case
of non payment.
Issue Of Secure loan against property
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Intra Bank Cheque.
In case of Normal Account:
Cheque cannot be cash from any branch of Bank.
Cheque can be deposit in account and payee will pay charged
some amount in clearing of the cheque.
In Case of Online Account:
Cheque can be cash in any Branch of Bank.
Issue of Intra Bank Cheque.
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State Bank of Pakistan has announce its new
Monetary Policy with a 1.5% decrease in the
interest rates. With this reduction, the interest
rate reduced from 12% to 10.5%. The new
Monetary Policy was announced by Governor
State Bank, Yaseen Anwar.
Dated : 10-Aug-2012
State Bank Decrease Rate 12% to 10.5%
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State Bank Decrease Rate 12% to 10.5%
Views Of Governor State Bank:
Yaseen Anwar blamed the electricity crisis to
be the main driver of economic instability. He
said that the private sector credit was affected
the most as a result of this crisis.
So SBP slashed the rate of interest to increase
the credit of Private sector.
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Views On Policy by Presenter Waqas Khan:
In my Views the decision to decrease mark up
rate from 12% to 10.5% is essential for
reviving the business activities, encourage newinvestments which would ultimately improve
the economic growth of the country.
State Bank Decrease Rate 12% to 10.5%
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Dishonouring of Cheque
[Pakistan Penal Code (XLV of 1860) Section 489-F]
Dishonestly issuing of a Cheque.
Whoever dishonestly issue a cheque towards re-payment of a
loan or fulfillment of an obligation which is dishonored on
presentation, shall be punishable with imprisonment which
may extend to three years, or with fine, or with both, unless
he was establish, for which the burden of proof hall rest to
him, that he had made arranges with his bank to ensure that the
cheque would be honoured and that the bank was at fault in
not honouring the cheque.
Inserted On :
Dated : 25-10-2002
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Thank You
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CREDITS:
Special Thanks To:
Sir Kamran Khan.
Mrs. Shehrish Rizvi
Mr. Ahsan (Manager Finance UBL)
UBL Bank
HBL Bank Jauhar Degree College