organizational structure of bank of khyber

Chapter – 3 “Organizational Structure of BOK”

CHAPTER – 3

ORGANIZATIONAL STRUCTURE OF BOK

3.1 ORGANIZATIONAL HIERARCHY CHART OF BOK:

The channels that delegate these activities are called organization hierarchy.

This must be set in such a manner to best accomplish the organizational goals. Bank

of Khyber is one of the modern organizations; a competent staff is managing it. It is a

centralized organization and the authority flows from top to bottom. Bank of Khyber

has been entrusted to the Board of Directors. The Board consists of six directors

comprising five directors nominated by the Government of Khyber Pakhtunkhwa.

“ORGANIZATIONAL HIERARCHY CHART”

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Marketing Department

Public Relation Department

Human Resource Department

Risk Management Division

Information Technology Deptt

Investment Department

Assets Management Department

Credit Department

International Banking Department

Accounts & Treasury Department

Branch Operations Department

Banking Operation Division

Personnel & Establishment Division

Managing Director

Long Term Projects Resident Directors AUDIT

Managing Committee

Board of Directors

Organization


3.1.1 CORPORATE INFORMATION OF BOK:

i. CHAIRMAN:

Mr. Attaullah Khan

ii. MANAGING DIRECTOR / CHIEF EXECTIVE OFFICER:

Mr. Bilal Mustafa

iii. BOARD OF DIRECTORS:

Mir Javed Hashmat (Executive Director)

Sahibzada Saeed Ahmad (Director)

Mr. Muhammad Asif (Director)

Mr. Muhammad Maqsood Khan (Director)

Mr. Maqsood Ismail (Director)

Mr. Amjad Pervez (Director)

iv. AUDIT COMMITTEE:

Muhammad Asif (Chairman)

Sahibzada Saeed Ahmad

Muhammad Maqsood Khan

Mir Javed Hashmat

Amjad Pervez

v. CHIEF FINANCIAL OFFICER:

Rahat Gul

vi. COMPANY SECRETARY:

Zahid Sahibzada

vii. AUDITORS:

Deloitte M. Yousuf Adil Saleem & Co. Chartered Accountants

viii. LEGAL ADVISORS:

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Mr. Nisar Ahmed Khan Advocate, Peshawar

M/s. Mohsin Tayebaly & Co., Karachi

ix. REGISTERED OFFICE / HEAD OFFICE:

The Bank of Khyber 24, The Mall Peshawar Cantt.

UAN# 00-92-91-111 95 95 95, URL: www.bok.com.pk

x. REGISTRAR & SHARE REGISTRATION OFFICE:

THK Associates (Pvt) Ltd Ground Floor, State Life Building No. 3

Dr. Ziauddin Ahmed Road Karachi – 75530. Pakistan.

3.2 NUMBER OF EMPLOYEES IN BANK OF KHYBER:

Bank is service oriented organization which need more professional and

skillful people, the Bank of Khyber is also managed by experienced and well qualified

team of professional that is lead by a distinguished banker of the country. The bank

provides them with on the job training.

Employees/Years 2011 2010 2009

Permanent 805 795 637

Contractual Based 442 398 119

Daily Wagers 11 5 6

Total 1258 1198 762

3.3 MAIN OFFICE OF BANK OF KHYBER:

The Bank of Khyber 24, The Mall Peshawar Cantt.

UAN# 00-92-91-111 95 95 95, URL: www.bok.com.pk

3.4 INTRODUCTION OF THE DEPARTMENT BOK (IBB) SWABI BRANCH:

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http://www.bok.com.pk/

http://www.bok.com.pk/


The Operation (General Banking) Department of Bank of Khyber IBB Swabi Branch

consists of the following Sub-Departments:

1) Deposit Department.

2) Cash Department.

3) Accounts Department.

4) Remittances Department.

5) Clearing Department.

6) Bills Department.

7) Information Technology Department.

3.4.1 DEPOSIT DEPARTMENT:

This department deals with retail banking i.e. opening customers accounts

without opening an account customer cannot operate in the bank. Once the account is

opened relationship between customer and bank is created.

Procedure for opening an account:

A person, who wants to open any kind of account, has to fill in a printed form

which is provided by the bank, free of cost. Separate account opening forms are used

for different types of accounts.

Bank usually requires that new depositor must be introduced by someone. An

introducer can be any person known to the bank but preferably it should be a

customer of the bank. However, the manager can open the account by his own

introduction.

If the manager is satisfied, it will obtain the full signature of the customer- on

the form and specimen signature card, makes the first deposit, and issues the cheque

book.

The following are given to the customers:

Pay-in-slip is the proof of deposit. For every payment which is to be deposited

in the bank, the pay-in-slip is to be filled up. The object of this book is to provide the

customer with the bank's acknowledgment for receipt of money to be credited this

account. Cheque Book contains a number of cheques. It enables a customer to make

withdrawal from this account or make payment of various parties by issue of cheque.

Pass Book is a copy of the customer’s account as appears in the books of the bank.

Balance is recorded in this book by the Clerk.

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Documents:

I. Copy of Computerized National Identity Card

II. Two attested photographs to be obtained for pasting on AOF and other on

Specimen Signature Card.

III. Thumb Impressions

Male -------- Left Hand Thumb Impression.

Female ------Right Hand Thumb Impression.

3.4.2 CASH DEPARTMENT:

Cash department most bank prohibit this area for all type of customer and

even for the other departments employee, similarly the internees are also not allowed.

However the main functions of this department are cash payments and cash receipts

that are briefly described below:

Cash Receipts: Receipt of cash from the customers by the bank in case of

deposits, issuance of demand draft and telegraphic transfer or payment of fees

etc. is the function of this department. A record is also maintained for these

receipts.

Cash Payments: Along with the receipt of cash for different transactions, this

department also performs the function of payment of cash, for example, when

a customer withdraws cash from his account, etc

3.4.3 ACCOUNTS DEPARTMENT:

This department is responsible to keep the record of each and every

transaction and prepare reports about the amount of deposits and advances and sent to

Head office or State Bank of Pakistan on monthly, quarterly and yearly basis. The

accounts department deals with various routine activities for the bank. The main

activities performed by it are:-

a) Budgeting

b) Reporting

c) Maintenance & depreciation of fixed assets

d) Miscellaneous functions

Budgeting:

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Accounts department of a bank, for a year makes budget of every branch.

Fiscal year of bank starts from July 01 and ends on June 30.

Reporting:

The accounts department, in the form of reports, clubs the details of various

departments together. Each and every minute detail is provided in weekly, monthly

and annual reports. The reports are submitted to head office, SBP and to the

government. The accounts department prepares many reports, of which the most

common are:-

I. Statement of Affairs

II. Income & Expenditure Report

III. Business Report

IV. SBP Report

V. Outstand Receipt Report

VI. Currency Wise Deposits Report

VII. Maintaining of Fixed Assets & their Depreciation

Accounts department maintains the record of all the assets and charges

depreciation on them. The bank normally uses the straight-line method to compute the

depreciation.

It is calculated on monthly basis and charged yearly. Bank not only depreciates the

existing assets but also the assets but also the assets transferred in and transferred out.

3.4.4 REMITTANCES DEPARTMENT:

THE BANK OF KHYBER (IBB) Swabi Branch also provides the facility of

transfer of funds from one bank to other and from one place to another place. The

transfer of funds is mainly the responsibility of the remittances department.

The transfer of funds as well as the receipts from other branches of the bank is the

basic responsibility of remittances department.

Outward Remittances: When the bank sends a Telegram, Mail and Demand

Draft to another bank (concerned branch) for payment to the customer, it is

called outward remittance. The customer pays charges on the bank counter.

The sender is required to apply through a form in which he will give all the

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necessary details about the sender and beneficiary. The signature of the

customer is verified and relevant document is attached as per exchange control

regulations.

Inward Remittances: When Telegram, Mail and Demand Draft are drawn on

the Bank of Khyber, it is called inward remittance. Bank charges withholding

tax and commission according to the rates specified in the schedule of bank

charges. At the Bank of Khyber (IBB) Swabi remittances are made in the

following manners.

In the remittances department there are different transfer types that are given

bellow:

i. Mail transfer

ii. Demand Drafts (D.D’s)

iii. Telegraphic transfer

iv. Pay order

v. Call deposit

Demand Draft:

Demand draft is a written order drawn by a branch of a bank upon the branch

of same or any other bank to pay certain sum of money to or to the order of

specified person

Demand draft is a negotiable instrument.

Legal provisions are same as that of cheque.

It is to be ensured that purchaser can at least sign.

Thumb expression is not accepted on DD

These parties are involved: purchaser, Issuing Branch, Drawer Branch and

Payee

A demand draft may be issued against the written request of the customer

before issuing it must be seen that the demand draft is in order.

Telegraphic Transfer:

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Transfer of funds from one branch to another branch of the same bank or upon

other bank under special arrangements.

Telegraphic transfer is not negotiable

The funds are not payable to bearer

Minor cannot avail this facility

These parties are involved: Applicant, Drawing branch, Drawer branch and

Beneficiary.

Full name of the beneficiary or account number should be mentioned in the

application form.

Instruction regarding mode of payment should be obtained.

A record in the remittance outward register should be maintained.

All the remittance must be controlled through number.

Mail Transfer:

Transfer of funds from one branch to another branch of the same bank within

or outside the city is called mail transfer.

Mail transfer is not negotiable

The procedure is same as for DD. All precautions must be observed.

Pay Orders:

Pay order is meant for bank own payment but in practice they are also issued

to customers.

A pay order is written authorization for payment made in a receipt form issued

and payable by the bank. To the person named and address.

These parties are involved: purchaser, issuing branch and payee.

Charges must be recovered at prescribed rate.

Pay order should be prepared like demand draft.

A record of all issued and paid should be maintained.

Credit voucher should be prepared.

Call Deposit:

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It is highly liquid instrument; it can be cashed at any time when needed. This

instrument bears no profit on it. It is mostly used for the purpose of tenders.

3.4.5 CLEARING DEPARTMENT:

Clearing-house, the general term for a central institution employed in

connection with large and interrelated businesses for the purpose of facilitating the

settlement of accounts.

Clearing Department keeps clearing register regarding clearing house which

consists two types of entries:

I. Inward Clearing: Inward clearing means record of all those cheques which

are being received by the bank in first clearing. All details of cheques are

recorded in clearing register.

II. Outward Clearing: Outward clearing means the detail of cheques that bank

has delivered to other banks in first clearing. Details of cheques are recorded

in the clearing register.

Nift: It is the abbreviation of “NATIONAL INSTITUITIONAL

FACILITATING TECHNOLOGY”. It is an intermediate party who facilitates

banks in clearing. Almost all banks have contract with it.

Instruments to Be Presented are Cheques, Demand Drafts and Pay Orders.

Types of Cheques Collected

Transfer Cheques: Those cheques, which are collected and paid by the same

branch of bank.

Transfer Delivery Cheques: Those cheques, which are collected and paid by

two different branches of the same bank situated in the same city.

Clearing Cheques: Those cheques, which are drawn on the branches of some

other bank of the same city or of the same area, which is covered by a

particular clearing house.

Collection Cheques: Those cheques, which are drawn on the branches of

either the same bank or of another bank, but those branches, are not in the

same city or they are not the members of clearing house.

3.4.6 BILLS DEPARTMENT:

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The Bills Department deals with the collection, purchase and discounting of

bills on behalf of the customers. The collection of cheques and other instruments has

become a very important service the commercial banks render to their clients. While

collecting cheques and other and other instruments, a bank acts as an agent of its

customers and therefore, the banker, the banker- customer relationship in this case

changes from the debtor-creditor relationship to the agent-Principal relationship.

The collection of bills usually involves two banks; the collecting bank and the

paying bank. Both, collecting as well as paying, banks have certain obligations to

each other and to their customers. They have certain legal rights also and legal

protection is available against fraudulent transactions under various sections of the

Negotiable Act, 1881.

3.4.7 INFORMATION TECHNOLOGY DEPARTMENT:

THE BANK OF KHYBER Islamic banking uses an integrated computer

software called UBank plus, windows based software. To run this integrated system

the Bank of Khyber Islamic banking branch Swabi has a networked hardware

resources including:

A Server computer.

06 Client computers.

Internet Facility.

CCTV Cameras with LCD for Security.

02 laser printers.

Fax Machine.

01 scanner and related accessories.

3.5 FUNCTIONS OF DEPARTMENTS IN GENERAL BANKING

(OPERATION DEPARTMENT):

3.5.1 FUNCTIONS OF DEPOSIT DEPARTMENT:

The main function of this department is to mobilize savings and channels them

into short-term investments such as advances.

To establish the banker customer relationship.

3.5.2 FUNCTIONS OF CASH DEPARTMENT:

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The main function of cash department is cash receipts and cash payments.

3.5.3 FUNCTIONS OF ACCOUNTS DEPARTMENT:

To prepare the Budgets.

To prepare the quarterly, semi-annually and annually Reports of the Bank.

Maintenance & depreciation of fixed assets.

Miscellaneous functions such as Closing Entries, Daily activity Checking,

Report Generation and Minor expense Recording.

3.5.4 FUNCTIONS OF REMITTANCES DEPARTMENT:

The transfer of funds as well as the receipts from other branches of the bank is

the basic responsibility of remittances department.

3.5.5 FUNCTIONS OF CLEARING DEPARTMENT:

To accept Transfer, Transfer delivery, clearing and collection cheques from

the customers of the branch and to arrange for their collection.

To arrange the payment of cheques drawn on the branch and given for

collection to any other branch on BOK or any other members or sub member

of the local clearing house.

To collect amount of cheques drawn on members, sub-member of local

clearing house, sent for collection by i.e. ABL Branches, not represented at the

local clearing house.

3.5.6 FUNCTIONS OF BILLS DEPARTMENT:

The Bills Department deals with the collection, purchase and discounting of

bills on behalf of the customers.

3.5.7 FUNCTIONS OF INFORMATION TECHNOLOGY DEPARTMENT:

The main function of IT department is to provide an integrated system of

networking to the Bank Employees.

To reduce the Transaction process time of the customers.

To Provide the Software and ensure the Identity and Network Security for the

data.

To provide the ATM service and Online Banking facility.

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organizational structure of bank of khyber

Documents

mall peshawar cantt

specimen signature card

information technology department

local clearing house

bills department deals

maintenance

telegraphic transfer

general banking