Government College Of Management Sciences Peshawar.
INTERNSHIP REPORT
ON
(House building Finance Corporation Ltd)
Presented by: Name: Mehtab Ali Shah Student !: M "C#M$ Final %oll N#: &'&
Submitted to$ Peshaar ni*ersity" ni*ersity"
DEDICATED TO
Dedicated to my Parents for their love, Sincerity and unflinching support.
DEDICATED TO
Dedicated to my Parents for their love, Sincerity and unflinching support.
ACKNOWLEDGEMENTS
Countl Countless ess thanks thanks to God; God; who is the Creato Creatorr of this this myste mysterio rious us univer universe, se, The erciful erciful and !enevolent !enevolent. "orthy of all praises, whose #ounteous #lessings ena#led me to complete this $eport work successfully and all the respect for his last prophet uhammad %Peace #e upon him& for enlightening our conscience with the essence of faith. ' feel highly privileged and pleasured to record the deep sense of gratitude to Saeed (han,, provincial Chief in )!*C +onal office, Peshawar, (han Peshawar, and and the whole staff of )!*C for their valua#le guidance and supervision. )is valua#le suggestions generated my vigor for ecellence in pursuits, without which this work would have never #een materiali-ed. ' am thankful to all my / staff mem#ers who guided us well and helped us in completing our tasks and to successfully reach our destinations. Spec Specia iall than thanks ks are are also also ete etend nded ed to my pare parent ntss who who alwa always ys impa impart rted ed full full encouragement and sincere cooperation not only during the course of this research #ut all over my academic career in the university.
Mehtab Ali Shah
EXECUTIVE SUMMARY
0ow a day1s strong and efficient capital and financial institutions are the #asic re2uirements of each country. So no country can #e considered strong without having strong enough capital and financial institutions and markets. 3ne of the components of these financial institutions are the #anks. 0o one can deny the role the #anks are playing in the economic development of a country. 'n Pakistan1s #anking sector, )!*C is one of the leading financial institutions, the prime housing finance institution of the country, providing afforda#le housing solutions to low and middle income groups of population #y encouraging new constructions in Small 4 edium )ousing %S)& sector. )ouse !uilding *inance Corporation was esta#lished under the 5ct 0o. 6''' of year 789:. Since its inception in 789:, the )ouse !uilding *inance Corporation has #een providing financial assistance to various segments of the society, all over the country, to #uild and own a house of one1s own. )!*C can rightly #e called a pioneer in this region of the world in specific purpose financing in housing sector. The new management started new schemes and inected new concepts in order to improve its services to the clients. 0ow the #ank is in very good financial position and also has gained its lost Goodwill. y two months internship in )!*C gave me a very good deal of the practical eperience a#out the financial institution, its personnel and various services it offers to the clients. The report aims at appraising the working of )ouse !uilding *inance Corporation, its functions and operation and also attempts to asses its performance. Certain recommendations are presented for the potential areas of improvement. 5n implementation plan of the recommended steps is given at the end of the report. 5t present, )!*C is providing financial assistance under two schemes, namely Ghar 5asan Scheme %G5S& for purchase and constructions of housing units, and Shandar Ghar Scheme %SGS& for renovation of houses. To cater the needs of chang ing time, and to make the product more attractive and easy for the intending house owners, while fully maintaining the compliance with Sharia1h, the financing facilities have #een remodeled, remolded, restructured and repackaged with the title of
PHOTOCOPY OF THE INTERNSHIP CERTIFICATE
(NOTE: Will be enl!"e# $i%& &'# !)*+
T'ble !, !n%en%"CHAPTER : .. ./. .0. .2. .3.
Vi"i!n Mi""i!n C!n"%i%1%i!n O$ne"&i) P!%en%i'l ,! H!1"in4 C!n"%1%i!n In#1"%* An# H!1"e Fin'ne.
./. 5ie, In%!#1%i!n !, %&e O4'ni6'%i!n 51"ine"" Se%!. ./.. G&' A'"'n S&e7e. ././. S&'n#' G&' S&e7e. CHAPTER / /. /./.. /./. /.0. /.2. /.3. /.3.. /.3./. /.3.0. /.3.2.
5ie, Hi"%!* H5FC LTD. N'%1e !, T&e O4'ni6'%i!n. 51"ine"" V!l17e. P!#1% Line". C!7)e%i%!". H!1"in4 Ce#i%!". N'%i!n'l 5'n8 5'n8 Al,'l'& H!1"in4 Fin'ne in %&e !1n%*.
CHAPTER 0 0.. 0... 0../. 0./. 0./.. 0././. 0.0.
5ie, in%!#1%i!n !, %&e 5'n& $&ee *!1 #i# Y!1 in%en"&i) 9!n'l O,,ie Pe"&'$'. Re")!n"ibili%ie" !, GM" 'n# 9M". Pei!# !, 7* in%en"&i). S%'%in4 D'%e. En#in4 D'%e. T'inin4 De)'%7en%".
CHAPTER 2 2.. 2... 2../. 2..0. 2..2.
In%!#1%i!n !, 'll De)'%7en%". In;e"%7en% De)'%7en%. IT. De)'%7en%. M'8e%in4 De)'%7en%. A#7ini"%'%i!n De)'%7en%.
2..3. A!1n%" De)'%7en%. 2..<. Re!;e* De)'%7en%. CHAPTER 3 3.. Pl'nnin4. 3... Dei"i!n M'8in4 P!e"". 3../. O4'ni6'%i!n C1en% S%'%e4ie". 3./. O4'ni6in4. 3./.. M'in O,,ie. 3././. N17be !, E7)l!*ee". 3./.0. O4'ni6'%i!n'l De"i4n. 3./.0.. De)'%7en%'li6'%i!n. 3./.0./. S)'n !, C!n%!l. 3./.0.0. C&'in !, C!77'n#. 3./.0.2. Cen%'li6'%i!n = Deen%'li6'%i!n. 3./.0.3. F!7'li6'%i!n. 3./.0.<. W!8 ")ei'li6'%i!n. 3./.2. M'n'4in4 C&'n4e 'n# inn!;'%i!n. 3./.3. M'n'4in4 IT 'n# C!771ni'%i!n. 3.0. Le'#in4. 3.0.. Le'#e"&i) "%*le. 3.2. C!n%!llin4. 3.2.. C!n%!llin4 O)e'%i!n". 3.2./. C!n%!llin4 )e,!7'ne. 3.2./.. Pe,!7'ne A))'i"'l S*"%e7. CHAPTER <. <.. C1"%!7e Rel'%i!n"&i). <./. In'#e>1'%e T'inin4 P!4'77e <.0. S&!%'4e !, l'%e"% C!7)1%e". <.2. P!! ?!b R!%'%i!n. <.3. L'8 !, Se1i%*. <.<. L'8 !, M!%i;'%i!n. <.@. I7)!)e $!8 #i"%ib1%i!n. <.. L'8 !, '))ei'%i!n. <.B. L'8 !, eli'bili%*. <.. H17'n Re"!1e M'n'4e7en%. <... Sele%i!n 'n# Re1i%7en%. <../. ?!b ,! Li,e. <..0. S%',, "een '" ?!b H!l#e". <..2. In%e)e"!n'l Rel'%i!n"&i)". CHAPTER @.
@.. @... @../. @..0. @..2.
SWOT An'l*"i". S%en4%&". We'8ne""e". O))!%1ni%ie". T&e'%".
CHAPTER . CONCLUSION AND RECOMMENDATIONS .. C!nl1"i!n. ./. Re!77en#'%i!n". Re,eene" 'n# S!1e" 1"e#.
C&')%e : INTRODUCTION 't was in 789: that an 5ct of the Pakistan legislature, known as the )ouse !uilding *inance Corporation 5ct, 789: %5ct 6''' of 789:& was passed to esta#lish the )ouse !uilding *inance Corporation, to provide financial assistance for house construction in the country.
The 5ct 6''' of 789:, was pu#lished in the Ga-ette of Pakistan, dated 7>th 5pril, 789: and came into force in 0ovem#er 789:, as per Government 0otification 0o.::%8&*.7?9: Dated >th 0ovem#er 789:. *or over a period of :@ years, the Corporation advanced loans only for house construction in ur#an areas of Pakistan. 'ts activities also suffered financial and management constraints due to paucity of funds. The )ead 3ffice of the Corporation was shifted, in 78AB from (arachi to Dacca which presented the +onal 3ffice at (arachi, with many difficulties. 't was after the reesta#lishment of its )ead 3ffice #ack in (arachi, in 78:, that a large num#er of amendments were affected in the )!*C 5ct and it1s financial allocations were augmented which ena#led it, #esides making construction loans, to sanction loans for house purchase in rural as well are ur#an areas of Pakistan, finance construction of housing proects, provide financial assistance in form of #ulk loans to the development authorities, housing corporation etc., advance reha#ilitation loans and undertake construction of housing proects for sale to pu#lic. This undou#tedly, revolutioni-ed the operative potential of the Corporation, #ut the real revolutionary change in its working was yet to come. 't was in 788 that the Government decided to introduce a new system of interest free financing through )!*C. 5n investment scheme, #ased on partnership, was worked out and after the )!*C 5mendment 3rdinance, 788 was approved #y the Ca#inet the same was introduced from 5ugust, 788. This #rought a maor change in the )!*C working. The Profit 4 Eoss Sharing Scheme %PES&, which was implemented in 788, was for a period of 79 years, which was simplified twice and with certain more amendments was reintroduced in :@@: with modification which is in vogue to date. /nder the new investment scheme %Ghar 5asan& the repayment period %maimum& was initially :9 years #ut later in :@@9 it was changed to :@ years.
..
VISION:
To #e the prime housing finance institution of the country, providing afforda#le housing solutions to low and middle income groups of population #y encouraging new constructions in Small 4 edium )ousing %S)& sector.
./. MISSION To #e a socially responsi#le and commercially sustaina#le housing finance institution. TARGET MARKET F TARGET AREAS F
Eow and middle income groups of population. 0o negative list, all legali-ed residential locations.
$esponding to housing needs of lowincome groups is a social responsi#ility, #eyond that everything has to #e 7@@ commercially sustaina#le.
.0. CONSTITUTION )ouse !uilding *inance Corporation was esta#lished underthe act 0o. 6''' of year 789:.
.2. OWNER SHIP
Growing rate of )ousing DemandH • • • •
'n ur#an areasH )ousing units in countryH 3wnershipH $ent freeH
>@ P.5 78 million. >@.> %79.9& million 7@.: %:.@ million&
• • •
$entedH /nits re2uired for the population of 7I8 millionH Shortfall of housing unitsH
8.@ %7.9 million& :9 million A.@ million
J!ased on 788> survey. JThis estimates that !acklog may now #e increased to .@ million. .3. P!%en%i'l ,! H!1"in4 C!n"%1%i!n In#1"%* 'n# H!1"in4 Fin'ne:
/r#an )ousing needsH 5t average cost of $s. 7.@ illion?/nitH MORTAGE B9 of /r#an housing needs Current mortgage finance %:@@9&
I@@,@@@ per year I@@ !illion
FINANCE 7B9 #illion 7> !'EE'30 30EK
POTENTIAL B of GDP .9 of GDP.
./. 5RIEF INTRODUCTION OF ORGANI9ATION 5USINESSS SECTOR PRODUCTS ./.. GHAR AASAN SCHEME: The M'n'4e7en% of H5FC has taken #old steps in helping its customers o#tain afforda#le
2uality housing to fulfill their individual needs and epectations. They are now committed to play a prominent role as a socially responsi#le and commercially sustaina#le house financing institution of the country. The G&' A'"'n S&e7e will support you in purchase or construction of house ? flats. The salient features of the scheme are as followingH 7. *inancing support up to $s.9, @@,@@@? is accessi#le to #e provided to all prospective customers su#ect to the customer1s eligi#ility 4 location of the proect. :. The loan can #e repaid over a maimum repayment period of :@ years in afforda#le installments depending on the customer1s age, repayment a#ility and the share in the rental income. B. The overall cost in ac2uiring housing under the scheme is much more attractive as compared to other financing institutions. I. Sharia compliant scheme.
9. )assle free investment 4 repayment facility. HOW TO APPLY FOR H5FC INVESTMENT in GAS (GHAR AASAN+ The application forms are availa#le at all offices of )!*C, free of cost. 3netime processing
fee shall #e paya#le to the Corporation along with application. PERSONS FROM WHOM APPLICATION FOR H5FC INVESTMENT MAY 5E ACCEPTED: 5pplications may #e accepted from and in the name of persons who are in ownership •
of a plot of land, either lease hold or free hold, with a clear nonencum#ered marketa#le title and have a relia#le source of income from service, Government or private or through #usiness. •
5pplications may #e accepted from persons holding powers of attorney in the prescri#ed form of )!*C, provided it is esta#lished that the owner is serving a#road or in a province other than the one where the application is filed and is not in a position to complete the re2uired formalities himself. 'n either case, the attorney should #e a guarantor for such investment.
•
5pplication may #e accepted from a minor through his duly certificated guardian with prior permission of the family Court, in writing, to assign the property of the minor to the Corporation as security against the investment. 'n such cases the guardian should invaria#ly, eecute a letter of guarantee on #ehalf of the minor.
•
5 Pakistani, residing a#road, may apply for investment in the same way as persons?applicants within the country. The income of such applicants should #e confirmed?verified
#y
respective
Pakistani
Lm#assies,
wherever
considered
necessary.
WHAT DOCUMENTS ARE REUIRED (A+. HOUSE CONSTRUCTION: The following documents in original together with a photo stat of each, should accompany
the investment application for the construction of a houseH
(i+. LEASE HOLD PROPERTIES:
i.
Eease deed or su#license or 5greement for Sale or Grant. 'n case there was any su#se2uent transaction on the plot, Sale Deed and mutation certificate in favour of the applicant, shall accompany the documents mentioned a#ove.
ii. iii.
Site Plan of the plot. 0onencum#rance certificate in the prescri#ed *orm E: 4 EB from the date of lease deed to the date the application is made.
iv.
Permission to assign in the prescri#ed *orm E78$, from the allotting authority concerned.
v.
Proof of income.
vi.
!ank receipt for payment of fee as prescri#ed.
vii.
Three passport si-e photographs of applicant and of guarantor and attorney, if any.
viii.
5ffidavit on prescri#ed form in cases of investment of a#ove $s.7 million, if on the #asis of declaration through 5ffidavit.
i.
edical certificate of the applicants or guarantor from the authori-ed medical practitioner of SE'C, in case of investment of a#ove $s.B million.
(ii+. FREE HOLD PROPERTIES: i. East ama#andi or certified copy of City Survey Ltract with registered Sale Deed in
favor of the applicant %if the property was #ought #y him& and clear title to land. 'n 0"*P, !aluchistan and Gilgit where the sale was #y way of utation, a certificate of 5ssurance from the Collector or his nominee, together with clear title to land. ii.
0onencum#rance certificate in the prescri#ed form for the last 7: years.
iii.
utation in favor of the applicant.
iv.
5kseShara?Site Plan.
3ther documents re2uired in lease hold as well as free hold lands are as followsH i. ii.
3riginal approved #uilding plan with a spare copy. Eetter approving the #uilding plan.
iii.
'ncome certificate of Government department?reputed organi-ation on the letter head showing details of income and deduction.
iv. v.
Payment receipt of proposal fee from the #ank, at the prescri#ed rate. Computeri-ed 0ational 'dentity Card %C0'C&.
'f the title deeds and other documents presented for registration are found to #e lacking, the applicant should #e asked to present the application for investment after completing full documentation %the official receiving the application should not, however, refuse it without valid reasons&. 'n case the income is through #usiness, or agricultural land, 'ncome Ta $eturn or proof of income from Tehsildar shall #e considered for calculation of repayment capacity. 'n case the applicant offers a surety, the prescri#ed guarantor1s 2uestionnaire *orm provided in application form shall #e filled in with proof of income of the guarantor therein. (5+ HOUSE PURCHASE (ONLY FOR UR5AN AREAS+:
The facility of investment #y the Corporation for purchase of finished house is availa#le in ur#an areas of District )ead2uarters. Considering maimum age of the house of <5 Class= construction as I9 years, the period of repayment of investment including agreed and moratorium period shall #e determined #y deducting the age of house from I9 e.g., a house aged I@ years shall #e admissi#le for investment up to a maimum of 9 years. 'nvestment may #e made at all coastal areas ecept for the front row of Sea iew Township and Darakhshan illas, Clifton (arachi su#ect to su#mission of soundness Certificate from the Pakistan Lngineering Council1s approved Lngineer?5rchitect. The application for investment for purchase of house should accompany the #elow mentioned documents in addition to the one su#mitted in cases of investment for construction of houseH i.
Sale 5greement #etween the Seller and Purchaser, drawn on stamp paper of eisting prescri#ed value duly attested #y 3ath Commissioner or 0otary Pu#lic.
ii.
*or the purpose of house purchase no transaction will #e allowed #etween #lood relations such as father and son, #rother and #rother or sister and also, wife and hus#and etc.
The age of the house and soundness of construction should #e further verified #y the inspecting official of the Corporation #y site inspection and report recorded in the case file. (C+. VALUATION OF HOUSE=FLAT: The applicant may re2uest )!*C in writing in *orm )*I, for valuation of the house?flat for
purchase investment which shall #e done through one valuer of Pakistan !ank 5ssociation %engaged #y )!*C& in case of investment #elow $s.:.9@ million and through : valuers in cases of investment of $s.:.9@ million and a#ove. The applicant shall #e responsi#le to pay the cost of the valuation through pay order. 'n such cases, the District anager shall issue a letter to the aluer. (D+ REVALUATION OF HOUSE=FLAT: 'n case the applicant disagrees with the Collector 'nde $ate and if the,
a. $ate of plot pertaining to the particular locality has not #een entered in the $evenue Collector 'nde. #. 3nly commercially constructed #uilding rate of the locality are appearing in the $evenue Collector 'nde. c. 5nd the applicant re2uests in *orm )*I?7 for revaluation and su#mits pay order in respect of fees of the valuer, in that case the property valuation #e got done for the second time for calculation of admissi#ility of investment. INVESTMENT IN RURAL AREAS
The )!*C investment may #e made for the construction of houses in $ural 5reas which are approved #y *ederal?Provincial Government. The land on which the house is to #e constructed should #e in clear undisputed possession of the applicant?vendor. The chain of title esta#lished for the last 7: years and there shall #e no restriction on the applicant?partner1s right to transfer ownership and assign that land together with the structure there upon to the )!*C. The Corporation1s right to attach and sell the house constructed thereon without intervention of the court should always #e assured. 'nvestment for purchase of house shall not #e approved in rural areas.
To verify the title to land to #e assigned to the Corporation, the following documents #e calledH i.
/n#roken chain of the title for the last 79 years i.e. certified copy of etract of Mama#andi records and utation certificates issued #y $evenue 5uthority concerned.
ii.
3riginal #uilding plan approved #y an authori-ed officer of the District or /nion Council and where there is no District or /nion Council, a #uilding plan approved #y a licensed architect and countersigned #y the Collector of the District or his nominee.
iii.
'n case of oint holdings of land entry from $evenue records showing that the land on which the house was to #e constructed was duly partitioned and demarcated #y 5kse Shara, which is well distinguisha#le, and its #oundaries defined #y consent of all co sharers.
iv.
5 certificate %Eetter of 5ssurance& from District Collector or his nominee in *orm E:@.
v. vi.
ii
Computeri-ed 0ational 'dentity Card %C0'C&. The repayment capacity shall #e calculated in the manner as eplained in paragraph A.7?# 4 #ut rental income shall not #e added to increase the admissi#ility of investment. The maimum limit of )!*C investment shall not eceed $s.7@@,@@@?N in each case. 5ll the other conditions as descri#ed in this anual for )!*C 'nvestment in /r#an 5reas shall, however, remain unchanged in cases of $ural 5reas.
POLICY FOR APPROVAL OF INVESTMENT: (A+ MAXIMUM INVESTMENT LIMIT:
UR5AN AREA /p to $s.9,@@,@@@?N
RURAL AREA /p to $s.7,9@,@@@?N
LOCATIONWISE INVESTMENT LIMIT: '
/p to $s.7,@@@,@@@?N
b
/p to $s.7,@@@,@@@?N
'n all /r#an areas including Tehsil and small towns all over Pakistan. 'n District %including
)ead2uarters Cantonment
/p to
$s.:,9@@,@@@?N
/p to
#
$s.,9@@,@@@?N
$s.79@,@@@?N
e
areas of Tehsils planned for housing. *or ur#an areas of %i& *aisala#ad %ii& ultan, )ydera#ad %iv& Peshawar %v& 5##otta#ad %vi& Ouetta. 'n #ig cities i.e. (arachi, Eahore 4 'slama#ad? $awalpindi, the Committee constituted for the purpose shall recommend the city or locality other than the a#ove which 2ualifies for investment a#ove $s.7 million. The Committee may also recommend investment limit of an adacent locality in a articular area, locality or a case. The anaging Director may allow investment on such recommendation of the Committee. 'n $ural areas approved #y the *ederal?Provincial Government.
•
The maimum repayment period for each individual investment shall #e :@ years.
•
5 partner, who has already constructed or purchased a house from )!*C investment may #e eligi#le for making an application for investment on partnership #asis, for the same or any other house provided the previous investment has #een fully adusted.
•
There is no limit of covered area of a housing unit for financing #y the Corporation.
•
'ncome accruing through regular employment shall #e su#stantiated #y a certificate from the employer as prescri#ed in *orm G or on letterhead of the institution?organi-ation.
•
'ncomes through #usiness or a profession, if #elow the taa#le limit, shall #e declared through an affidavit #y the applicant in *orm )*:7 and accepted after verification #y
the District anager. 'n all such cases, the verification report shall #e recorded #y the official concerned in *orm )*::. •
'ncomes falling under taa#le limit shall #e supported #y the latest 'ncome Ta $eturn together with ta paid challan and Photostat copy of the same. The original 'ncome Ta $eturn duly acknowledged #y 'ncome Ta Department may #e returned after attesting the photostat.
•
'ncome accruing through rent of a house shall #e proved #y furnishing a copy of the rent agreement together with the title to the property %to prove ownership&. 'n case the rent is through the same house for which investment from the Corporation is #eing sought, for additional construction?unit only rent agreement shall #e furnished. The title documents in cases of the first nature may #e returned after verification.
•
'ncomes accruing through agricultural land shall #e su#stantiated through certificates of ownership issued #y the Tehsildar or ukhtiarkar concerned along with Deh *orm''.
•
'f hus#and and wife have independent sources of income, the repayment capacity may #e calculated on their oint income. 'n such cases, guarantee of the wife or hus#and, as the case may #e, shall #e o#tained.
•
'n cases of applicants who are depending upon their children?parents the income of either may #e taken in full for the purposes of repayment capacity. 'n cases where parents?children are #oth earning mem#ers of the family, oint income of hus#and and "ife or father?mother and children may #e accepted. 'n such cases the age of the oldest mem#er of family shall #e considered for repayment period of investment. 5ll earning mem#ers shall sign the letter of guarantee.
•
The applicants who are 99 years of age or a#ove can also avail )!*C investment su#ect to age limit of A@ years or A9 years on case to case #asis for the purchase of entire investment units with the approval of the anaging Director.
•
The period of repayment of investment shall #e so fied that all the units of the Corporation is purchased #y the partner #efore he?she attains the age of A@ years. )owever the age, may #e relaed up to A9 years on case to case #asis on the #asis of
$eport of +onal )ead which will #e first eamined #y a Committee consisting of LD%3ps& and G%3ps&. The anaging Director will then decide relaation of age on the recommendation of the committee. •
'n case of coapplicants, the age of all coapplicants, whose income is taken for esta#lishing the admissi#ility of investment amount may #e considered #ut the period of purchase of investment units shall #e fied on the #asis of age of the oldest co applicant having income.
•
'n case the applicant?coapplicants are not within the age stipulated a#ove or have no income of their own, guarantor%s& having inherita#le right in the house within the age limit as stipulated a#ove shall #e re2uired whose verifia#le income%s& shall #e considered for calculating the admissi#le investment amount. )owever guarantee of #lood relations i.e., #rother, sister 4 or their adult children, soninlaw, daughterin law etc., may also #e accepted in deserving cases. The age of the oldest guarantor shall #e used for fiing the period for purchase of investment units. 'n case of oint income of the applicants and the guarantor%s&, only verifia#le income of applicants and the guarantor%s& having inherita#le right in the house, shall #e considered.
CALCULATION OF REPAYMENT CAPACITY:
The calculation of repayment capacity is governed as underH
7. The admissi#ility of investment in applications of up to $s.9@@,@@@?N shall #e 9@ of net monthly verifia#le income if the total cost of the house is twice the amount of investment applied for.
:. 'n all other cases the repayment installment shall #e calculated at the ratio of BH7 %BB&.
B. 5griculture 'ncomeH 5nnual 5ssessed 'ncome Q 7:
•
The annual estimated income from land holdings #eyond ta eempted limit of agriculture income shall #e supported #y ta payment receipt. 'ncome per acre in
respect of canal irrigated land shall #e assessed #y respective +onal )ead on the #asis of 'ncome certificate o#tained from $evenue Department. 'ncome through poultry, fish and cattle farms and orchid to #e assessed through physical verification of site of #usiness, #ank account, checking of annual turnover and on production of ownership?rental agreement of property on which these farms are esta#lished.
INVESTMENT ON THE 5ASIS OF DECLARATION THROUGH AFFIDAVIT:
'nvestment a#ove $s.7 million where cost of Plot as assessed #y the valuers approved #y P!5 %Pakistan !anking 5ssociation& is e2ual or more than the amount of investment applied for, may #e allowed on the #asis of declaration through an affidavit, made #y the applicant?guarantor that he has sufficient monthly income to Purchase from the corporation its investment units at the agreed value along with the payment of monthly rental income.
•
F! C!n"%1%i!n !, &!1"e:
7. The plot is I@@ s2.yds or a#ove; 3r :. The cost of plot assessed #y the P!51s approved value is e2ual or more than the amount applied for #ut not less than $s. 7 illion and the estimated cost of construction is $s. 7.9 illion or a#ove.
•
F! P1&'"e !, &!1"e=,l'%:
The forced Sale value %*S& of house?flat is $s.:, 9@@,@@@? or a#ove, as assessed #y the P!51s approved valuer %s&. 3r 'n case of house the plot si-e is I@@ s2. yards or a#ove 3r 'n case of flat, the covered area of flat is 79@@ s2.ft or a#ove. •
'n all such cases, the concerned +onal )ead shall certify that he is satisfied that the applicant?guarantor has, in his assessment, sufficient sources of income to meet the lia#ility of corporation1s investment.
RATE OF CONSTRUCTION:
The rates of constructions as prescri#ed from time to time #e applied #ased on the Circular issued. The rates of construction shall #e revised periodically on the recommendations of a Committee constituted #y the anaging Director, consisting of LD%3perations& and LD%*inance&. The Committee will decide the fre2uency. Such revision will #e made on the assessment? recommendation of a panel of valuers?architects to #e engaged #y )!*C.
ASSESSMENT OF COST OF HOUSE=FLAT:
The cost of the house?flat shall #e assessed on the #asis of the cost of land, undivided share of the flat in the gross cost of land of the proect as per Collector 'nde or where Collector 'nde is not availa#le, the market value of the land o#tained through sample survey or through valuation #y approved valurers of P!5. 'f the applicant disagrees with the rates of Collector 'nde and approved #y the )ead 3ffice plus the cost of the construction arrived at #y multiplying the covered area of the house?flat with the applica#le rate of cost of construction determined #y the Corporation from time to time. 'f the applicant who is constructing a smaller unit on a #ig si-e of plot, the covered area of housing unit shall #e taken twice the covered area of site for determining co st of land.
MAXIMUM INVESTMENT:
Su#ect to ade2uacy of monthly income of the applicant%s&?guarantor%s& the admissi#ility of maimum investment that the Corporation may make shall #e in the de#t e2uity ratio of >@H:@ su#ect to the location wise maimum limit.
REGISTRATION OF APPLICATION:
"hen an application is su#mitted #y the applicant in the District 3ffice of )!*C, the official 'ncharge of receipt of applications shall check that all the columns of application form have
#een correctly filled and the re2uired set of documents accompanies the same. 5ppropriate data is availa#le to the District anager when he interviews the applicant.
The District anager shall, thereafter interview the applicant after satisfying himself that the preparatory work has #een done correctly, #y the official incharge of receipt of application. The purpose of personal interview of the applicant is to determine whether the applicant is sufficiently credit worthy to receive the )!*C investment. The District 3fficer shall, therefore, go into the applicant1s circumstances i.e., financial strength 4 lia#ilities, and the si-e of the family. 'f there is a guarantor he shall also #e interviewed in the same manner. The District 3fficer shall always keep in mind that the Collateral Security %property to #e assigned against )!*C investment& is only of a su#sidiary relevance #ecause a forced li2uidation in case of default in future #ecause of the unsound financial position of the applicant, shall #e a lengthy and unrewarding eercise for the Corporation. 5s such, it is the foremost and personal duty of the District anager, to make selection of the client after very carefully eamining the applicants and his guarantor1s credit worthiness.
'n course of interview some of the relevant 2uestions to pro#e a#out the credit worthiness of the applicant may #eH
a. The o# of the applicant, length of service. #. 's the applicant in the ha#it of changing his o#s often %as it will definitely effect his future repayment of )!*C investment&. c. )as he any other loan lia#ilities %through any !ank or private source&. d. 's the house to #e constructed will #e for self occupation or partly for rent purposes etc. e. 5re there other family mem#ers earning and providing financial support.
'n case the documents initially appear in order and the D.. concerned is satisfied a#out the credit worthiness of the applicant and guarantor, if any, he will advise the dealing officials to register the case in *orm )*:.
The dealing official shall then attest the photocopies of the documents if he is authori-ed in writing to do so, otherwise authori-ed official shall attest the photocopies. 5fter attestation of the documents the dealing official shall retain the application form, attested photocopies of documents, Computeri-ed 0ational 'dentity Card %C0'C& etc. along with original proof of income and !ank emo receipt of application fee and return all the original documents to the applicant. )e will also issue to the applicant the computer generated receipt of the a#ove documents, on *orm )*B, #earing computer generated account num#er. Thereafter, the details of case and documents su#mitted shall #e entered on computer and a case of the applicant under the computer generated account num#er shall #e opened with the following documents?papers.
•
Proposal *orm )*7.
•
Photocopies of title documents.
•
5ny other re2uired?necessary paper and office note #y the dealing assistant?officer.
PROCESSING OF INVESTMENT PROPOSALS:
5fter the receipt of the application, the case file, with photostat copies of documents under the )* computer num#er allocated, shall #e forwarded #y the District anager concerned to the anager Eaw?Eegal 5dviser for scrutiny of title documents, if it is a free hold property case. 'n cases of direct lease where no su#se2uent sale or transfer is involved and the lease deed is in a form already scrutini-ed #y the Corporation, there shall #e no need for any legal scrutiny.
5fter title to land?house has #een declared clear in writing #y the Eaw 3fficer?Eegal 5dvisor?5dvocate on Panel %as the case may #e& and income of the applicant%s&?guarantor%s& has #een verified, the processing for the approval of investment shall #e computer#ased and audit proposal shall #e generated #y Computer.
Credit 'nformation !ureau1s %C'!& report shall #e o#tained from State !ank of Pakistan, #efore approval of investment of
[email protected] million and a#ove.
*or investment of a#ove $s.B million, medical certificate of the applicant%s& or guarantor%s& if any?all of them from an authorised medical practitioner of SE'C shall invaria#ly, #e re2uired at the time of su#mission of application. 'f the applicant?guarantor is serving a#road the same certificate shall #e re2uired on prescri#ed format of SE'C from a Government hospital duly attested #y the Pakistan Lm#assy concerned. 'f the sum assured for an applicant is more than three million, the insurance cover shall commence only if SE'C agrees to provide the insurance cover after medical underwriting of the applicant. The medical eamination fee will #e #orne #y the applicant in addition to insurance premium.
Standard type of leases as in case of (.D.5, C.D.5, E.D.5, Cantonment !o ard, 'mprovement Trust, Satellite Towns, )ousing Societies and 5gencies shall #e eamined for valid title only once. The title deeds in free hold property cases shall #e scrutini-ed in each individual case #y the anager Eaw?Eegal 5dviser to clear the title. 'n cases of *ield?District 3ffices such scrutiny shall #e done #y the part time legal adviser.
'f the scrutiny reveals deficiency of any kind in the documents or information or the particulars, the applicant shall #e advised in *orm )*9 to furnish the re2uisite documents or information within the time limit to #e specified #y the anag er?District anager.
'f the documents are not completed within B months, a reminder, in )*A, may #e sent to the applicant and in case there is no response within a week the case should #e filed and the decision conveyed to the applicant, in *orm )*A5. 5ll such cases should #e noted in a register to #e maintained in *orm )*.
'n case the title to land is found defective or the applicant1s declaration in respect of his income, stage of construction etc., is found incorrect the application should #e reected and noted in the reected cases register to #e maintained #y each District 3ffice in *orm )*>.
The processing of the application shall #e computer #ased. 5fter the applicant1s title to property is declared in order #y anager Eaw, +onal 3ffices and Eegal 5dviser at *ield 3ffices, the dealing assistant concerned shall generate the audit proposal through computer containing the following detailsH
a. Total cost of construction. #. $ental income at the prescri#ed rates. c. Share in rental income, and d. $epaying capacity of the applicant #ased on the income certificate?verification report etc.
5fter the audit proposal has #een generated #y computer, the same shall #e checked, placed in the account file and forwarded to the District anager for sending it to concerned 5udit !ranch under his seal and signature for audit.
APPROVAL OF INVESTMENT:
*or approval of investment a Credit Committee at +onal, $egional and )ead 3ffice level has #een formed which shall approve investment cases as per delegated powers in the following mannerH
7. 9ONAL CREDIT COMMITTEE: '. I, %&e C!77i%%ee i" &e'#e# b* bel!$ %&e 'n8 !, Gene'l M'n'4e:
Me7be" H
P!$e"
+onal )ead %C&? anager
/p to $s.9@@, @@@?N
anager?'n charge %5dmin&, anager?'n charge %$ecovery&
1!17:
Two out of three %including +onal anager&
Fe>1en*:
3nce in a week.
b. I, %&e C!77i%%ee i" He'#e# b* ' Gene'l M'n'4e
Me7be" :
P!$e"
+onal )ead %General anager &
/p to $s.7@@@,@@@?N
anager?'n charge %5dmin&, anager?'n charge %$ecovery&
1!17:
Two out of three %including General anager&
Fe>1en*:
3nce in a week.
. REGIONAL CREDIT COMMITTEE REGIONA
Me7be":
P!$e"
$egional Director, $egion5
5#ove $s.9@@, @@@?N and up to $s.:9@@, @@@?N
+onal )ead, 5#otta#ad +onal )ead, 'slama#ad
1!17:
Two out of three %including $egional Director&
Fe>1en*:
3nce in a week.
#. REGIONAL CREDIT COMMITTEE REGION5:
Me7be":
P!$e"
$egional Director, $egion!
a#ove $s.9@@, @@@?N and up to $s.:9@@, @@@?N
+onal )ead, Eahore +onal )ead, *aisala#ad
1!17:
Two out of three %including $egional Director&
Fe>1en*:
3nce in a week.
e. CREDIT COMMITTEE HEAD OFFICE KARACHI:
Lecutive Director %)$45& Chairman
P!$e"
Lecutive Director %3perations&em#er
5#ove$s.9@@, @@@?Nand up to $s.9@@, @@@
Lecutive Director %$ecovery& em#er Lecutive Director %S5&em#er Lecutive Director %*inance&em#er anager %3perations& Secretary
1!17:
Three out of five %including Chairman&
Fe>1en*:
3nce in a week.
'n cases where the investment is more than the competency of +onal Credit Committee as mentioned a#ove, the said Credit Committee in the southern $egion %via +onal 3ffices, (arachi, )P+, )ydera#ad, Sukkur 4 Ouetta&, shall recommend the investment proposals to Credit Committee, )ead 3ffice, (arachi, whereas the +onal Committees in 0orthern $egions shall recommend the proposals to their respective $egional Committees.
"here the investment amount is a#ove $s.:.9 million, the +onal Committee1s of $egion <5= 4
!efore approval of investment etra vigilance should #e eercised #y the Ds and +onal )eads to ensure that documentation and procedural formalities are complete.
!efore forwarding the case for approval of investment #y the respective +onal?$egional? )ead 3ffice Credit Committee, datewise account of the processing of the case should #e prepared #y the District 3ffices in *orm )*7@ and placed in the file duly signed #y the District anager concerned. The application shall #e disposed of?put up for approval within stipulated time fied #y the )ead 3ffice.
5t every stage, the movement of the files should #e recorded in ourney of file Performa #y the dealing assistants concerned, as well as, in the movement register maintained #y him?her personally and #y the official in charge of the diary and dispatch of the files in the relevant registers to keep track of the files.
The District anager of each District should maintain categorywise registers in *orm )*7: to #ifurcate the investments approved under various categories #y the respective +onal?$egional and )eads 3ffice Credit Committee for information and record.
5 computeri-ed statement of the investment applications received, approved, filed, reected and pending, investment dis#ursed and recovered should #e prepared #y each District 3ffice in *orm )*7I 4 )*79 and sent to the +onal 3ffices on the 7st day of the net following month for compilation of the data. The +onal 3ffices should, in turn, send a duly compiled statement in the same *orm to the 3perations Division, )ead 3ffice (arachi #y the 9th day of the net following month for further necessary action.
The District 3ffices should also send categorywise statement of investments approved, in *orm )*77, to the respective !ranch of +onal 3ffices for compilation of the re2uired information #y the latter.
ISSUANCE OF ACCEPTANCE LETTER:
5, computer generated 5cceptance Eetter containing all conditions imposed #y audit and others shall #e issued. The acceptance letter shall #e issued under the official stamp and signature of District anager or any authori-ed officer in writing on this #ehalf in *orm )* 7B.
The computer shall also generate the payment schedule for the total investment period. This schedule shall #e #ased on regular payment of monthly rent and purchase of units on due dates and payment of monthly insurance premium after the epiry of moratorium period. This payment schedule shall #e invaria#ly enclosed with the 5cceptance Eetter sent?delivered to the applicant.
5 record of all such investment applications which are not finali-ed during a month and pending on the 7st day of the net following month should #e kept #y each District 3ffice in a separate register. 5 list of all such cases, with reason for its pendency in the remarks column thereof, shall #e sent along with the statement in *orm )*7I #y each District 3ffice to the +onal 3ffice concerned.
The 'nvestment !ranch of each +onal 3ffice should compile the a#ove information and send statements in *orms )*7:, )*7I and )*79 to the 3perations Division, )ead 3ffice for further compilation of statements for information of the anaging Director and record.
5 *low Chart representing the a#ove steps is attached at 5ttachment5.
5fter approval of investment and issuance letter of acceptance, the file shall #e sent to the inspecting officer for verification of stage of construction at site.
'f the first instalment of investment approved is not drawn within the validity period of acceptance letter, a reminder in )*7 shall #e sent to the partner and in case of no response, the approval should #e withdrawn #y the District anager concerned and the decision conveyed to the applicant. The documents of title %photocopies& in such cases shall #e returned to the applicant or his duly authori-ed agents against proper receipt. Such withdrawals should #e noted in 'nvestment Cancellation $egister in *orm )*8.
The period of approval of investment may #e etended #y the %+onal )ead?G or D.. in District 3ffice& #y a further period of B months.
INSPECTION OF SITE AND RELEASE OF INVESTMENT:
The release of investment installment shall #e concomitant with the stage of construction at site.
The applicants shall apply in Lngineering *orm )*B, for the release of investment installment. Physical inspection of the site should #e conducted #y the District anager and the stage of construction recorded towards the noting side of the )* file. 5n inspection report in, duplicate should also #e prepared in each case in *orm )*B> under the signature of the inspecting official.
'n cases of investment for construction of new houses, physical inspection of the sites should #e conducted at the time of release of each installment. 'n cases of house purchase, however, such inspection should #e only #efore the release of investment.
The officer inspecting the site shall take three photographs of the site on which house has #een constructed or to #e constructed i.e. one photograph of the eact site of the house, second covering as well the house?site of right dimension and third the left dimension. The officer inspecting the site shall paste the photographs on white legal si-e paper %foolscap& and affi his official stamp and signature in such a way that it partly appears on each photograph and the rest on the paper. The account num#er 4 date of inspection shall #e recorded on top of the page. 3ne copy of the set of photographs shall #e placed in account file and the other in the cover of document in the Strong $oom. The print of photos tend to diminish after few years, hence assuring safekeeping all the photographs shall #e got laminated #efore placing in account file and documents cover.
0oteH Camera shall #e provided to each District 3ffice for the purpose of taking photographs of the sites, whereas scanners shall #e provided to the +ones for storing the photos and inspection reports. Software shall #e developed at e ach +one for this purpose.
'n cases of investment for house purchase, the District anager?G or his authori-ed nominee shall inspect the house and draw completion report in Lngineering *orm )*I@. The valuation certificate of the house, its life and soundness of construction furnished in Lngineering *orm )*I7 should also #e checked to see if it is in order.
'n order to identify the plot and avoid any misunderstanding regarding the same, the inspecting official should check up the #oundaries of the plot and ensure that the same tally with the one shown in the approved #uilding plan and lease deed?sale deed?site plan.
5part from the a#ove it should also #e ensured #y the inspecting officials that the construction is #eing carried out in accordance with the approved plan, is sound and the security of the Corporation1s investment is in no way impaired.
'n case the investment is not ade2uate for the release of installment applied for, and the construction at site has not reached the re2uired stage, the partner should #e asked in Lngineering *orm )*I: to make good the shortage and apply for reinspection of site.
'n all cases of first and su#se2uent che2ues, the D shall inspect the site. 'n cases of final che2ue and house purchase, however, the +onal?General anager or his nominee shall conduct inspection in rotation. 'n order to keep a check, on the reports of the District anager the +?G or his nominee shall reinspect the sites on percentage #asis while conducting inspection for final che2ues.
'n order to keep a constant watch on the security of )!*C finances the +?G should re inspect the sites in at least 7@ cases of the +one under their control and su#mit report in *orm )*IB to the Lecutive Director %3perations& for information and record.
The General anagers should also conduct super inspection in 9 cases in their respective +one and report in *orm )*IB to the anaging Director through Lecutive Director, 3perations the results of their inspection.
5fter the inspection report is recorded and the investment found in order, the file should #e sent #ack to the concerned official for taking further necessary action for the payment of installment. The order for issue of che2ue shall #e recorded in the file #y the District anager under a ru##er stamp. 5 monthly statement of the inspections conducted #y the +?G and District anager shall #e compiled in *orm )*IB to remain on record of the +onal 3ffice for future reference, if any.
RELEASE OF INVESTMENT INSTALMENTS:
The investment installments shall #e released as per the stages of construction set out #elow.
NO. OF INST. 7st
'. GROUND FLOOR: RATE
B@
:nd
B@
Brd
B@
Ith
7@
NO. OF INST. 7st
b. FIRST FLOOR: RATE
B@
:nd
B@
Brd
B@
Ith
7@
STAGE OF CONSTRUCTION 5fter completion of plinth with DPC. 5fter completion of structure %with #lock?#rick masonry& 5fter completion of internal and eternal plaster, fiation of *rames of doors and windows and flooring of all rooms. 5fter completion of flooring of all #ath rooms, fittings of shutters of doors?windows, completion of sanitary fittings, Drainage work and electric fittings.
STAGE OF CONSTRUCTION 5fter completion of lintel level of first floor. 5fter completion of structure %with #lock?#rick masonry& 5fter completion of internal and eternal plaster, fiation of frames of doors and windows and flooring of all rooms. 5fter completion of flooring of all #ath rooms, fittings of shutters of doors?windows, completion of sanitary fittings, drainage work and electric fittings.
c.
GROUND AND FIRST FLOOR:
NO. OF INST. 7st
RATE
B@
:nd
B@
Brd
B@
Ith
7@
STAGE OF CONSTRUCTION 5fter completion of structure on ground and first floor up to Eintel level. 5fter completion of first floor structure with #lock?#rick masonry of ground 4 7st floor. 5fter completion of internal and eternal plaster, fiation of frames of doors and windows and flooring of all rooms. 5fter completion of flooring of all #ath rooms, fitting of shutters of doors?windows, completion of sanitary fittings, drainage work and electric fittings
FIRST SECOND FLOOR NO. OF INST. 7st
RATE
B@
:nd
B@
Brd
B@
STAGE OF CONSTRUCTION 5fter completion of first floor structure and second floor up to lintel level. 5fter completion of structure of second floor %with #lock?#rick masonry work of 7st 4 :nd floors&. 5fter completion of internal
Ith
NO. OF INST. 7st
:nd
7@
#. GROUND FIRST AND SECOND FLOOR: RATE STAGE OF CONSTRUCTION B@ 5fter structure of ground and first floor up to lintel. B@ 5fter completion of structure of all the floors and #lock masonry.
Brd
B@
Ith
7@
NO. OF INST.
and eternal plaster, fiation of frames of doors and windows and flooring of all rooms. 5fter completion of flooring of all #ath rooms, fittings of shutters of doors?windows
e. FOR SECOND FLOOR ONLY: RATE
7st
B@
:nd
B@
Brd
B@
Ith
7@
5fter fiation of doors?windows frames, completion of internal?eternal plaster and floor of all rooms. 5fter completion of flooring of all #ath rooms, fittings of shutters and doors, windows, sanitary fittings, drainage work and electric fittings.
STAGE CONSTRUCTION
OF
5fter completion of lintel level of second floor. 5fter completion of structure %with #lock?#rick masonry&. 5fter completion of internal and eternal plaster, fiation of frames of doors and windows and flooring of all rooms. 5fter completion of flooring of all #ath rooms, fittings of
shutters of doors?windows, completion of sanitary fittings, drainage work and electric fittings.
DIS5URSEMENT FIRST TRANCHE:
!efore making dis#ursement of first tranche the dealing official, the che2ue signatories and the District anager will ensure thatH
7& 5ll original documents have #een su#mitted #y the applicant%s& and final computer generated receipt of original documents on *orm )*B%a& has #een issued to the applicant and copy thereof duly signed #y the applicant is placed in the account file.
:& 5ll the post sanction formalities have #een fulfilled and audit o#servations complied with.
B& Site inspection report and photographs of the site are availa#le in the file and stage of construction 2ualifies for the release of first tranche.
I& /ndertaking #y the applicant%s& and letter of guarantee in case of guarantor has #een received in *orm )*7> 4 )*7>5 respectively.
9& Paid receipt of insurance premium for two years in advance together with undertaking of partner%s&?guarantor%s& for Group Eife 'nsurance has #een received specimen in *orm )*:B 4 )*:I.
A& Promissory note in *orm )*:9 e2ual to the amount of first tranche #earing stamp of prescri#ed value and letter of continuity in *orm )*:A have #een received from the applicant%s&?guarantor%s& and found in order.
& 't is compulsory in this investment scheme that repayment shall #e made through advance post dated che2ues of BA monthly instalments and one postdated che2ue for the entire outstanding #alance in lump sum for the remaining period whereas the Bth che2ue for the entire outstanding #alance for the remaining period shall not #e presented for encashment and returned #ack on receipt of B che2ues for the net cycle. 't should therefore, #e ensured that advance che2ues for the said period of investment %ecluding agreed period& drawn on the #ank of the applicant with instructions for payment has #een received in advance %as per Guideline 4 Procedure in *orm )*:. *or illiterate partners and those having ver#atim signature, arrangement has already #een made with the #ank and therefore, it is compulsory for such partners to open their personal accounts in any designated #ranch of #ank authori-ed for collection.
>& Deed of 5ssignment and Partnership has #een received and #ears the prescri#ed adhesive stamp and the effect has #een duly recorded on noting side of the file. The #lank columns of the Deed of 5ssignment and Partnership shall #e filled.
8& Che2ue issue order has #een passed #y the competent authority, under his official seal, full signatures, employee num#er and date.
5fter having checked and found the a#ove complete, the dis#ursement voucher shall #e generated through the computer #y the dealing official concerned in accordance with the /ser1s anual provided #y 'nformation Technology Department, )ead 3ffice, (arachi and simultaneously, a cover of documents shall #e opened and all original documents including promissory note, photographs of site and letter of continuity letter shall #e placed therein. The documents will #e kept in safe custody with the District anager till delivery of che2ue of first tranche.
3n the #asis of computer generated voucher, 5ccount payee che2ue shall #e prepared in favor of partner%s& and put up for signature to the authori-ed first and second signatories.
The che2ue of first tranche shall #e delivered to the partner or his duly authori-ed attorney %accepted #y the Corporation& #efore the Su# $egistrar concerned at the time of registration of Deed of 5ssignment and Partnership. The photocopy of the receipt received from Su# $egistrar1s office is placed in the account file and effect #e noted on noting side.
The official holding Power of 5ttorney on #ehalf of the Corporation for eecuting the Deed of 5ssignment and Partnership shall continue to maintain a register in *orm EA5 to record the date of the assignment deed and the sale deed etc. %in case of house purchase& together with date of collection of said documents from Su# $egistrar1s office concerned.
The register shall #e put up to District anager on every Saturday with the num#er of assignment deeds collected and those outstanding showing reasons for noncollection in the remarks column. "ithin 9 days after collection of Deed of 5ssignment and Partnership, the same shall #e sent ? delivered to the Eaw !ranch of the concerned +onal 3ffice against proper receipt, while the original documents cover shall #e sent in *orm )*:> for placing it in Strong $oom. )owever, a photocopy of assignment deed shall #e placed in investment file.
The entry of assignment, where applica#le, shall continue to #e made in the record of right?revenue record. Lntry to this effect shall #e made on the noting side of account file and certificate received for such entry shall #e placed therein.
The delivery of cover shall not #e delayed for want of assignment deed which shall #e sent when received on due date as per para 7.9 a#ove. Eaw !ranch of +onal 3ffice shall retain the first copy of receipt thereof and return the second copy duly signed, stamped with seal.
The District anager shall ensure that all the documents re2uired to #e placed in the cover have #een detached from the account file, placed in the relevant document1s cover and the same has #een sent?delivered to the Eaw !ranch of the +onal 3ffice concerned for placing in the Strong $oom as per Eegal procedure.
DIS5URSEMENTSECOND THIRD FINAL TRANCHE:
!efore release of second, third 4 final tranche it should #e ensured thatH
7& Site inspection report and a set of three photographs of present stage of construction have #een su#mitted #y the concerned official and the same are placed on correspondence side of the account file and also recorded on noting page.
:& 5ccording to site inspection report stage of construction 2ualifies for the release of second?third 4 final tranche.
B& Promissory note e2ual to the amount of second, third 4 final tranche together with letter of continuity has #een received, found in order and recorded on noting side.
I& 'n case of release of final tranche it should #e ensured that registered Deed of 5ssignment and Partnership if due for delivery, has #een collected from the concerned Su# $egistrar.
Lntry of assignment of house?flat has #een made in the record of right?revenue record, certificate to this effect has #een received, placed in the account file and also recorded on noting side thereof. 5s a matter of a#undant precaution it should also #e ensured that all audit conditions and post sanction formalities have #een met?fulfilled.
Che2ue issue order has #een issued #y the competent authority under his official seal, full signatures, employee num#er and date.
5fter having checked and found the a#ove complete, the dis#ursement voucher shall #e generated through computer #y the official concerned. 3n the #asis of computer generated voucher, 5ccount payee che2ue shall #e prepared in favor of the partner and put up for signatures of authori-ed first and second signatories.
The 5?c Payee che2ue of second, third 4 final tranches shall #e delivered to the partner at the concerned District 3ffice against proper receipt #earing revenue stamp of p rescri#ed value.
5fter delivery of final tranche, registered Deed of 5ssignment and Partnership shall #e sent?delivered to law !ranch of concerned +onal 3ffice for placing it in the relevant document cover and receipt thereof #e o#tained in writing and shall #e recorded on the noting side.
5s the final 'nstallment shall #e released after flooring, fiation of shutters of doors and windows including kitchen 4 #athroom and after electric fittings, a completion report shall simultaneously #e drawn at this stage #y the District anager, if the work is complete at site.
'f the partner does not draw su#se2uent installment%s& within the agreed period, he should #e reminded in *orm )*IA to apply for the same immediately. 'n case of nonresponse the site #e inspected #y the D.. and if the construction is found complete the investment shall #e reduced to the etent of amount dis#ursed. Conse2uently audit proposal and approval shall #e revised and revised acceptance letter #e sent to the partner.
The Corporation may also reduce the investment without assigning any reason. The partner may also re2uest the Corporation to reduce the investment if he has completed the #uilding from his own resources after drawl of part of the investment.
5ll payments in respect of investment for construction of houses?flats are made #y cross che2ues drawn in favor of the applicant or the person who holds a duly registered power of attorney on #ehalf of the applicant. 'n cases of house purchase investment, an order che2ue may #e issued.
5ll che2ues of investment for construction are specifically crossed with the words <5ccount Payee 3nly= ecept che2ues which are intended for the payment of departmental house #uilding advance in cases of Government servants or for the payment of #alance price of land if a part of the investment is advanced for this purpose. The latter type of che2ues are to #e endorsed #y the partners in favor of the Government or the allotting authority and are to #e handed over to the representative of the department concerned, duly authori-ed to collect the che2ues, at the time of registration of the Deed of 5ssignment and Partnership. Such che2ues should #e crossed #ut may not #e endorsed <5ccount Payee 3nly=.
The investment che2ues of 7st installment are delivered #efore the registration officer concerned at the time of registration of 5ssignment Deed. 5s the fact of payment of 7 st che2ue is recorded in the 5ssignment Deed and the payment is made in the presence of the $egistrar, no other receipt of payment is necessary from the partner.
The che2ues for second and su#se2uent instalments of investment are made to the partner at the offices of the Corporation against stamped receipt signed #y the partner or his duly constituted attorney, holding power of attorney under a registered document in the prescri#ed form EI. oreover, such che2ues can also #e deposited? sent to the #ank account of the partner if so desired #y the latter and full information regarding #ank account num#er etc., along with a written re2uest and presigned receipt is furnished to the Corporation, in this #ehalf. ././. SHANDAR GHAR SCHEME:
The M'n'4e7en% of H5FC has taken drastic steps to help people add value to their eisting a#odes at a reasona#le cost. These efforts are targeted at fulfilling individual needs and epectations. )!*C is actively aiming at playing a remarka#le role as a socially responsi#le and commercially sustaina#le housing finance institution.
)ence )!*CE has devised a scheme #y the name of S&'n#' G&' (&!7e I7)!;e7en% S&e7e+ , which is purported to support the #orrowers to purchase materials, fitures and
fittings for the renovation of their houses. 'ts salient features are as underH
7. The maimum financing support )!*CE offers is up to $s.:,9@@,@@@. :. The loan can #e repaid over a maimum period of 7@ years in afforda#le installments. B. The applica#le ura#aha profit is 7:. Thus the overall cost charged to each #orrower will #e considera#ly less as compared to other financing institutions. I. This is a Sharia compliant scheme #ased on ura#aha mode of financing. 9. 't offers hassle free investment 4 repayment facility. A. Larly repayment facility is availa#le. SHANDAR GHAR SCHEME (DETAIL+
)!*C investment is availa#le for home improvement also under its ura#aha financing scheme named
3ffice will consist of the following officers and staffH i.
District anager.
ii.
Customer $elation 3fficer %C$3&. /nder this category of officer, num#er of incum#ent shall depend on the load of work.
iii.
Dispatch $ider.
iv.
0ai# Oasid.
)ome improvement investment is availa#le for the following items of workH •
Structural repairs including walls, filling of cracks;
•
"ater proofing and roofing including replacement of roof and Polyurethanes %heat resistant&.
•
*looring and tiling.
•
Grills, doors and windows, additions?replacement?improvement.
•
Plum#ing and #athroom fitures additions?replacement?improvement.
•
Construction or repair of underground?overhead water tanks, water #oring.
•
Llectrical works and installation including security devices.
•
•
Ltension?addition of rooms in eisting unit su#ect to approval of #uilding authority. 'mprovement?replacement of fied kitchen fitures; and
•
'nterior?Lterior Paint.
•
5ddition of a room to the eisting construction.
ESTIMATION OF INVESTMENT FOR FINANCING:
The admissi#ility of investment in this scheme shall #e #ased on the forced sale value of the house?flat as assessed #y the valuer R #ill of 2uantity e2ual to incremental value i.e. renovation cost of the house, as assessed #y the valuer. The minimum limit of investment shall #e $s.:9,@@@?N to a maimum of
[email protected] million. The valuer1s report %to #e drawn in two parts& as per #elowH •
*orced sale value of the property plus incremental value of the house as assessed #y the aluer.
•
'temwise cost estimate report.
)!*C will finance upto 9@ of the incremental value of the property su#ect to the maimum investment limit 4 ade2uacy of income. 'n case of eisting partners, the investment paya#le to )!*C shall #e deducted from the forced sale value of the property assessed #y the engaged aluer. The partner, if any, shall clear the default, #efore the case is processed for approval. SECURITY OF INVESTMENT:
The financing shall #e secured #y way of a e2uita#le mortgage of the house, or additional collateral of movea#le or immova#le property offered #y the applicant, at the discretion of )!*C. PROCESSING OF APPLICATION:
The C$3 shall scrutini-e the case thoroughly #efore preparing the audit proposal on following countsH i. ii.
Title to land declared clear #y law. 'ncome verification report of applicant?guarantor appears in the file.
iii.
aluation report is availa#le.
iv.
*or eisting partners the account position is uptodate.
'n fresh cases?application the title anager Eaw?5dvocate shall eamine documents legally on panel. aluation of the house shall #e assessed and the approved aluer?5rchitect engaged #y )!*C, at the cost of the applicant, shall eamine cost estimates. The applicant shall #e responsi#le for payment of stamp duty, valuers fees, all other charges and epenses incurred on processing and eecution of document. 5fter preparing the audit proposal, the file shall #e sent to 5udit Division for necessary audit. 5fter the file is received duly cleared #y the audit, it shall #e put up to the respective Credit Committee for approval of investment. "hile approving the investment, the file should also recheck thoroughly for any audit remarks, documents clearance, income verification and repaying capacity calculation etc.#efore sanctioning of investment. 5fter the approval of investment, the account num#er of the case shall #e recorded on the cover of document and letter of approval issued to the partner through courier. ./.0. Fin'ne F'ili%* ,! S7'll 51il#e":
5 large num#er of Small !uilders are engaged throughout the country in constructing and selling individual houses on small scale. 'n order to encourage them, )!*CE has launched Fin'ne F'ili%* ,! S7'll 51il#e" which will help 3vercome the shortage of houses in
the country and would simultaneously #e instrumental in #oosting up national economy as a whole.
C&')%e /: OVERVIEW OF THE ORGANI9ATION /.. 5RIEF HISTORY OF THE ORGANI9ATION )ouse !uilding *inance Corporation, the oldest housing finance institute of Pakistan, was esta#lished as a statutory federal #ody in 789: with the o#ective of providing financial assistance for the construction of houses. Lnsuingly )!*C1s scope also #ranched out into diverse dominions like purchase, repair and renovation of houses. Eater on )!*C1s mission was evermore reformed to specifically target the needs of the low and middle income strata of the country #y providing Small and edium )ousing %S)& Solutions, hence successfully providing skilled and user friendly service at afforda#le costs. 3ver the years )!*C1s operation has flourished and is now spread over a network of B $egional, 7: +onal and 9> District 3ffices, I camp offices and :9 $epresentative 3ffices?Service 5gents and :7 more such offices will #e opened very soon. )!*C today has its presence in >@ cities and towns all over Pakistan and is targeting to epand its #usiness to 79@ cities and towns. )!*C1s )ead office is situated in *inance 4 Trade Centre (arachi. )!*C1s paid up capital is $s. B.9@ !illion %9B. percent for *ederal Government and $s. IA.IB percent for State !ank of Pakistan&. The general directive and administration of the corporation and its affairs is entrusted to a !oard of Directors and the anaging Director, who together with the assistance of !oard Committee manages and controls the affairs of the corporation.
/... H5FC L%#. )!*C Etd. which was on its way to #ecome a corporate organi-ation has finally #een incorporated as
I, since Muly, :@@. )enceforth, Part privati-ation #y offering share holding to firms like '*C, 5D! and 'D! etc is also a part of the agenda. )!*C Etd. is also intent upon the securiti-ation of mortgages and esta#lishment of $eal Lstate 'nvestment Trusts %$L'Ts& and ortgage !onds %!s&. To meet the upcoming corporate challenges and to cater to the growing needs of the corporation, )!*CE has taken certain drastic steps. 't is enhancing its operational efficiency
through preparation and implementation of manuals, computeri-ation, human resource development and elimination of ineptness and corruption through internal controls and redesigned reward structure. 'n the near future )!*C plans on epanding its outreach representative offices from >@ to 79@ towns and cities. )!*C is trying to augment its market image #y having proactive, efficient and customer friendly policies. :.:.
NATURE OF THE ORGANI9ATION
)!*C main aim has remained to provide Sharia compliant financing to its consumer market. )!*C financing schemes have also evolved over its 99 years of esta#lishment to ac2uiesce with this aspiration. These schemes have propelled )!*C towards the fulfillment of its !usiness *ocus which is to accommodate the low and middle income group1s housing needs. Thus )!*C offers a wide range of products for the ministration of its consumers. )ouse Construction *inancing, financing for purchase of house?flat, renovation of )ouse %)ome improvement financing&, loan transfer and !alance transfer fund is the range offered #y this organi-ation. :.B.
5USINESS VOLUME
Since inception to date, the corporation has financed over one and half million units for $s. I7.IB #illions, provided housing finance facility to :> corporate clients for $s. 7. million, made recoveries of $s. 97.BA> #illions and has outstanding portfolio of $s. 78.A #illion. Dis#ursed $s. A@@ millions flood loans to over $s @.I million affected families granted remissions to "idows, 3rphans and retired Government Servant of $s. 7.:B #illion on *ederal Government1s directive. 'ts 5verage annual dis#ursements and recoveries are around $s. :7?: to B #illions. 't has contri#uted $s. 7.7I8 #illion towards 0ational Lche2uer in shape of payment of interest, profit and income ta to Government and State !ank of Pakistan. 'n 78>I>9, the corporation launched F'i"'l T!$n H!1"in4 P!Je% , at Eahore consisting of B7: #ungalows and also constructed 78storeyed 3ffice !uilding named
of 7:7A storeyed *lat Proect consisting of :@> apartments at Eahore and 7:storeyed office #uilding at 'slama#ad conceptuali-ed #y ?S 0LSP5( stands approved #y )!*C !oard of Directors. )!*C1s paid up capital is $s. B.9@ !illion %9B. percent for *ederal Government and $s. IA.IB percent for State !ank of Pakistan&. The general directive and administration of the corporation and its affairs is entrusted to a !oard of Directors and the anaging Director, who together with the assistance of !oard Committee manages and controls the affairs of the corporation. :.I.
PRODUCT LINES
5t present )!*CE have following housing finance schemes in operationH 7. GHAR AASAN SCHEME #ased on diminishing usharka, a Shariah compliant scheme under which credit for construction and purchase of houses is allowed. :. SHANDAR GHAR SCHEME under which credit for repairs, renovation?up gradation is availa#le. B. LOAN FACILITY FOR SMALL 5UILDER for construction and sale of small houses?flats I. GHAR AASAN SCHEME (FLEXI+ for construction, purchase and renovation for houses?flats :.9.
COMPETITORS
/.3.. H!1"in4 Ce#i%!"
H!1"e 51il#in4 Fin'ne C!)!'%i!n 51il#in4 Fin'ne C!)!'%i!n
Pu#lic
The #iggest pu#lic sector organi-ation providing housing finance since 789: across the country including 0orthern areas and 5-ad (ashmir. •
H!1"in4 Fin'ne C!7)'nie" (HFC"+ ( Private Sector&.
3ut of )*Cs permitted to start #usiness, only 7 has survived with a mortgage portfolio of merely $s.B@@ million i.e. ')*E.
•
C!77ei'l 5'n8"
Since arch :@@B, housing finance market has eperienced a turn around. 5s many as :I #anks are active in providing housing finance. 5s ' have mentioned that :I commercial #anks are active in house finance #ut the most dangerous competitors to )!*C are two, which is competing )!*C as for as the products are concerned. :.9.:. 05T'305E !50( :.9.B. 5E*5E5) !50(. L6PE505T'30.
/.3./. NATIONAL 5ANK •
Product 'tems
•
)ome Purchase
•
)ome Construction
•
)ome $enovation
•
Purchase of Eand R Construction
•
!alance Transfer *acility %!T*&
)ome Purchase %)ouse or 5partment )
*inancing 5mount *inancing Period De#t to L2uity
)ome Construction
*inancing 5mount *inancing Period De#t to L2uity
/pto B9 illion B to :@ Kears >9H79 %aimum&
/pto B9 illion B to :@ Kears >9H79 %aimum&
)ome Construction J Product Detail
*inancing 5mount *inancing Period De#t to L2uity
/pto B9 illion B to :@ Kears >9H79 %aimum&
)ome $enovation
*inancing 5mount *inancing Period De#t to L2uity
/pto 79 illion B to 79 Kears >@H:@ %aimum&
Purchase of Eand and for Construction thereon
*inancing 5mount *inancing Period De#t to L2uity
/pto B9 illion B to :@ Kears >@H:@ %aimum&
ReFin'nin4 (5'l'ne T'n",e F'ili%* (5TF+ 'f you have a )ome *inance *acility outstanding with another #ank you can have it transferred to 0!P through a hasslefree process.
/.3.0. 5ANK ALFALAH
HOME CONSTRUCTION
'f someone have plot and need financing for the construction of a house, !ank 5lfalah provided upto 7@@ of the construction cost, The one difference is that if someone have no plot !ank 5lfalah will provide upto A@ of the value of the plot that one have selected to purchase. Payment period ranges from B to :@ years.
HOME RENOVATION
'f someone already own a home, #ut need etra space for a growing family or want to see some rooms get a new look. Simply apply for financing of 1)%! R". 0.3 7illi!n ! 2 of the surveyed value of their home and get yourself the etra space. T&e )'*7en% )ei!# i" 1)%! *e'".
HOME PURCHASE
"ith this facility, 5 person wants to purchase a house already constructed can #e financed #y #ank 5lfalah. !ank will provide them upto of the purchase price of the property, so that they can reali-e their dream and enter the reality of owning a home. Payment period ranges from B to :@ years.
/.3.2. H!1"in4 Fin'ne in %&e C!1n%* In"%i%1%i!n" H5FC
C'"e"=*e'
F!1" !n 51il#in4
O%&e 5'n8"
/
P1&'"e
C&')%e 0. PLAN OF INTERNSHIP PROGRAMME 0..
5ie, in%!#1%i!n !, %&e b'n& $&ee *!1 #i# *!1 in%en"&i).
0.. 9ONAL OFFICE PESHAWAR:
' have done my internship in )ouse #uilding finance corporation, +onal office Pehswar, which is located at all $oad Sadder area of Peshawar on the th floor of State life #uilding. The +onal 3ffices of the Corporation are its functional units where investments are approved and dis#ursed for construction and purchase of houses #y the clients and recovery is monitored through the District 3ffices falling under the urisdiction of each +onal 3ffice. The +onal 3ffices are of two types, ones which have heavy workload and larger num#er of District 3ffices under their urisdiction are headed #y General anagers %Senior Grade 3fficer&, the other with lesser num#er of District 3ffices under their control and comparatively, lesser workload are headed #y +onal anager who are unior officers of Chief anager Grade'' level. Presently, )!*C has 7: +onal 3ffices out of which are headed #y Senior Grade Gs and 9 #y unior Grade 3fficers of C level. +onal office Peshawar is one of large -onal offices under which districts are workingH 7. :. B. I. 9. A. .
PLS)5"5$ 5$D50 S"5T (3)5T !500/ D.'.()50 C)'T$5E
0../. RESPONSI5ILITIES OF G.MS 9.MS:
The General?+onal anagers are responsi#le within the areas of their urisdiction for the followingH 7. 3verall administrative control of the +onal 3ffice concerned, as well as the District 3ffices. :. 3rganising and controlling the investment activities including 5ccounting and $ecovery operations. B. Conducting periodical tours of all District 3ffices to ensure efficient and smooth working.
I. Lploring the possi#ilities of further epansion of Corporation1s investment activities and sending recommendations for opening of new offices in their areas of urisdiction to the Lecutive Director3perations. 9. Super inspection of houses in 9 cases of investment for sending report to )ead 3ffice. A. 'nspection of the site in all cases of final installment. . 5pproving the statistical data and statements concerning investment activities and ependiture etc. >. Checking and approving of the annual #udget estimates for onward transmission to the )ead 3ffice. 8. 5pproving all transfers, postings etc., of the staff and officers Grade''' 5.s, within an office, which have no financial implication.
7@. Disciplinary action against the staff up to the level of Senior 5ssistant. 77. 5pproving the salary #ills of the +onal 3ffice and District 3ffices. 7:. 5ny other o# assigned #y the Lecutive Director3perations ?anaging Director.
0./.
PERIOD OF MY INTERNSHIP PROGRAMME
0./.. STARTING DATE:
' have started my internship in )!*C at Brd Muly, . 0././. ENDING DATE:
y internship was ended at 7Bth 5ugust,:@7: after completion of A weeks in )!*C and getting the 'nternship completion certificate from Saeed (han, the Provincial Chief of )!*C.
0.0. TRAINING DEPARTMENTS: ' got training during my internship in the following departments. 7. 'nvestment !ranch :. $ecovery !ranch B. 5ccounts !ranch I. 5dministration !ranch 9. 5udit !ranch
A. Provincial Chief secretariat . 'T !ranch >. 'S !ranch y internship was eight weeks in )!*C, got one week training in each #ranch of )!*C as per the schedule provided to me #y their anager administration
C&')%e 2. TRAINING PROGRAME 2..
INTRODUCTION OF ALL THE DEPARTMENTS
2.. INVESTMENT DEPARTMENT
'nvestment department is concerned a#out the purchase of the products?Schemes. 5 manager and assistant manager is working in this department with some staff. They are primarily concerned with customer dealing. Good service is the primary factor for them that keep customers coming #ack. Profits ump considera#ly as the customer is retained over time. They achieve highlevel customer service #y; 7. Lsta#lish customer satisfaction goals. :. /nderstand your customer1s needs and place them first. B. Show care and concern. I. Communicate a positive attitude. 9. ake the #uyer feel good. A. Display strong #usiness ethics. . !e helpful rather than defensive when a customer complains. >. 'nvite the customer #ack. 8. 5void rudeness. 'n short, good customer service stems naturally from practicing good human relations. •
?O5S ASSIGNED TO ME:
•
Customer dealing %To give them products information and features&
•
Lntry of cases to software.
•
Collection of necessary documents from partners.
•
Generation of receipts for partners.
•
Generation of various reports for management.
•
Generation of 5ccount Status for partners.
2../ IT 5RANCH
The )!*C has appointed some 2ualified software and hardware engineers in the 'T department. The senior most is deputed as <'ncharge= of the 'T department. Software engineers?programmers are not only responsi#le for application development in The )!*C, to fulfill re2uirements of the #ank, #ut also act like trou#le shooters, whereas, installation of the hardware in the #ranch set up is the responsi#ility of hardware engineers. 'n each #ranch, they have assigned a systems administrator to look after o#s related to the computing system. Proper trainings have #een provided to system administrator in this effect. •
?O5S ASSIGNED TO ME:
•
5ssistance in regular data #ackups from !ranch offices.
•
5ssistance in 0etwork trou#leshooting.
•
5ssistance in Downloading LC'! from State !ank.
•
5ssistance in forwarding electronic attendance to )ead 3ffice (arachi.
2..0. M'8e%in4 De)'%7en%
!anks are aware of the fact that marketing and advertising are very important for the healthy growth of all organi-ations including #anks. 5dvertisements are meant to get the attention of a segment of the society, which is the #ank1s target. This is done through the followingH 0ews papers?periodical?ournals. $adio 4 T. 3ut door #oards?sign #oards Gifts with the #ank1s name printed on them like key chains or wa ll clocks. •
?O5S ASSIGNED TO ME:
Some visits ' have made with manager marketing to females oriented places for the purpose of their products marketing.
2..2. A#7ini"%'%i!n De)'%7en%: The +onal office 5dministration Department focuses on administrative as well as human resources related matter. 5s there is no separate department of )uman $esources therefore,
the 5dmin. Department deals all the )$ related areas. aor functions of the admin department include. •
Deals )$ related matters.
•
Provides stationery to various departments.
•
Day to day administration of the #ranch and logistics.
•
Lpense #udgeting and forecasting.
•
aintenance of the premises, staff houses and office e2uipment
•
Security. •
M3!S 5SS'G0LD T3 LH
•
5ssistance in maintaining, receiving and processing #ills from !ranch 3ffices.
•
5ssistance in all ependiture files and #ills of +one
•
5ssistance in making all Eegal *ee !ill, Eegal 5dvances and adustments.
•
5ssistance in Processing of salaries, offices rent, pension on monthly #asis.
•
Preparation of all type of computer generated reports of 5dmin !ranch.
2..3. A!1n%" De)'%7en%
The function of 5ccounts department is to post daily activities of each and every section. Lvery department is sending the detailed report of daily progress to the 5ccount Department for posting the same in the cash#ook, also allowed the clean cash register. The transaction then will #e shifted to their appropriate heads. 5ccounts department deals in two types of registers. 'n the income ledger the transactions relating to the income of the #ank are to #e posted, like commission from parties, maintenance etc. all the development epenses of
the #ank
including salaries epenses of the staff, rent epenses etc are to #e posted in the epense ledger. 5ccounts department also maintains the deposits, and also prepares the weekly and daily statements of the affairs of the #ranch. 't is ust like a #alance sheet. 't also keeps the record of #ranch reserve 9 of deposits with S!P. Lcess or shortage is reported to the treasury.
?O5S ASSIGNED TO ME:
•
aintaining Cash #ook and ledgers.
•
Collection of reports from all departments of the office on daily #asis.
•
aintaining Post dated Che2ues.
•
Preparation of Computer generated $eports for anagers.
2..<. RECOVERY DEPARTMENT
This department is concerned a#out the recoveries of installments form various partners %"ho have availed loans&, 5 recovery incharge with some lower staff is working in this department. The recovery in )!*C is through post dated che2ues, that is filled and signed che2ues have #een taken from the partner which is sent monthly to the #ank in which the partner has opened account, and the amount is cashed. 'f the che2ue is #ounced three times then action is taken #y the )!*C management in #anking court. The anager $ecoveries will #e responsi#le for the followingH 7. Procurement of the various District?+onewise statements of recovery 4 default from the 'T Division. :. Lamining the statements #efore putting up the same to the LD %$ecoveries&. B. aintenance of office files opened on su#ects of recovery etc. I. Correspondence with various 2uarters as well as +one 4 Districts 3ffices. 9. 5ny other o# assigned #y Lecutive Director %$ecoveries&.
?O5S ASSIGNED TO ME: •
Collection of post dated che2ues and current month due from accounts.
•
Presentation of due che2ues in !anks.
•
'ssuance of OI to #ounced che2ue partners.
•
Preparation of 5uction cases lists.
C&')%e 3. MANAGEMENT FUNCTION 3..
PLANNING
3...
DECISSION MAKING PROCESS.
T&e #ei"i!n 7'8in4 )!e"" i" "&!$n in %&e ,!7 !, ' ,l!$ in '"en#in4 !#e:
MD
PROVINCIAL CHIEF
CHIEF MANAGER
•
GENERALMANAGER=9ONAL CHIEF
MANAGER
MANAGING DIRECTOR (MD+:
The managing Director is the chairman of the organi-ation, the Chief Lecutive officer and is involved directly and indirectly in all decision making process. •
PROVINCIAL CHIEF:
The Provincial chief, #eing the overall 'ncharge of the operational units of the Corporation, is responsi#le to conduct tours of the +onal 3ffices as well as their su#ordinate units %District 3ffices& from time to time and su#mit reports on the working of the said offices to the anaging Director, together with his suggestions for improvement, if any. •
GENERAL MANAGER=9ONAL MANAGER
To monitor and supervise operational activities in order to ensure smooth and efficient working of +onal?District 3ffices of their $egions, #esides taking timely steps to prevent and eradicate all sorts of irregularities, if any. •
CHIEF MANAGER=MANAGER
The District 3fficer is incharge of the District 3ffice who works under the overall control of +onal?General anager. )e should #e aware that the due processing of an application and the decision to approve or reect it is not a mechanical process it is essentially a process of negotiation and that the personal integrity and the family1s financial condition of the applicant determine the ultimate success of the transaction.
3../ •
ORGANI9ATION CURRENT STRATEGIES Ne$ 1)!7in4 S&e7e"
7.
Stepupplan
:.
Savings and Eoan Plan
B.
L2uity !uilding Plan
I.
Construction Proect *inance
9.
$esidential )ostels *inance
A.
)ome *inance for 3verseas Pakistani
.
Syndicated *inance for Earge Construction Proects
•
H5FC FUTURE PLANS:
)!*C has #een a household name traditionally associated with housing finance. The scenario changed with the entry of #anks and leasing?house finance companies in the house finance sector from late 788@. )!*C had reconsidered its whole #usiness philosophy. This was rather inevita#le for its survival. The new management has #rought a revolutionary changes for the Corporation in all areas of its working including 3perations, )uman $esource, 5dministration, *inance, 'T, etc as well as client services. The strategic changes #eing initiated is epected to help )!*C emerge as a vi#rant and customer friendly housing finance institution there#y esta#lishing more firmly its age old place in the field of house financing with a new look. )!*C occupies a special place in the house finance #usiness as it has all along catered to the needs of the lower and lowermiddle income groups whereas the commercial #anks have targets of high profile clients. Commercial !anks have a large negative list of locations as well as professions. )!*C, on the other hand does not maintain any negative list of locations or professions and it rather encourages applicants from lower income localities, as long as housing constructions are on valid land title and the client meets other minimum eligi#ility criteria. Presently nearly >9 of )!*C1s clientele is lowincome people where loan amount is less than $s.7@@, @@@ whereas nearly >@ clients have per party loan #elow $s.9@@, @@@ and have monthly income #etween $sB, 9@@ to $s9, @@@ and could only afford to pay an installment of $s7@@@ to $s7:@@ per month in 79 to :@ years #esides meeting their monthly ependiture of #asic
necessities. *or )!*C, its social role is an integral and insepara#le part of its commercial stance. Since the #eginning of the year :@@9, )!*C is striving for a new outlook with a new ideology. Conse2uently, it has changed its ision to
•
IMPROVE CORPORATE IMAGE OF H5FC:
5s pointed out a#ove )!*C has network of a#out 9> #ranches all over Pakistan. 'n order to epand its outreach to the small cities and towns, )!*C is going to set up around 9@ $epresentative 3ffices where market driven techni2ues like appointment of service agents will also #e adopted. The working conditions in )!*C offices are #eing improved to show that it values and honors its clients, who are from lower and middle income sections of population and #eing the working class are the #ack#one of our economy.
•
MEGA HOUSING SCHEMES FOR SMALL AND MEDIUM HOUSING UNITS:
)!*C is actively working in association with the Provincial Governments, Corporate !odies, 'ndustrial Lstates and Pu#lic Sector 3rgani-ations to develop mega housing schemes comprising of small and medium housing units, #ased on hori-ontal and vertical housing solutions. 0LSP5( is working as )!*C1s consultant for developing such schemes. 'n view of the fact that the housing shortage in the country, particularly for lower and middle income groups of the population is acute and needs some mega solutions, these mega schemes have achieved paramount importance for the )!*C. 5ccordingly, while containing its retail housing finance products, )!*C will focus on #ulk housing schemes so that the housing stock in the country gets increased on fast track.
•
HOUSING FINANCE FACILITIES TO OVERSEAS PAKISTANIS:
)!*C would #e launching an online program for the overseas Pakistanis to facilitate them in owning a house in Pakistan where, on their return, they could live or earn reasona#le return #y putting the same on rent. *or availing this facility they do not need to visit )!*C office office as every thing would #e arranged on we#site and the overseas Pakistanis would have direct contact with the )!*C offices specifically designated and e2uipped with all the re2uired information for the scheme.
)!*C will provide provide financing financing facilities facilities as well as
•
OTHER HOUSING SCHEMES:
3ther schemes include schemes where eperience of (orangi Township can #e replicated. Such scheme is considered as among the #est housing solutions to reha#ilitate s2uatters?poor people. Provincial Governments are #eing approached with a proposal to earmark a piece of land in su#ur#s of maor cities starting with provincial capitals for #uilding houses for low income group of population.
3./. ORGANI9ING
3./. 3./... MAIN MAIN OFFI OFFICE CE )!*C main office %)ead 3ffice& is in (arachi, working under the direct supervision of anaging Director.
9 . :. : .
NUM5ER OF EMPLOYEES
S.NO 7
He'#>1'%e=9!ne O,,ie" )ead 7 3ffice%(arachi& (arachi +one 7:B )P + A8 )ydera#ad +one 9@ Sukkar +one B> Ouetta +one > ultan +one 9@ *aisala#ad +one BA Eahore +one 7II 'slama#ad +one A Peshawar +one I> 5##otta#ad +one 9: Gilgitt +one 77 Total >B
: B I 9 A > 8 7@ 77 7: 7B
S%',, 77:
T!%'l :>8
B : I@ :A 7@ BB :: 9 9I :8 B7 @ 9B8
78A 8A 8@ AI 7> >B 9> :78 7:7 >B 7> 7I7:
3./.0. ORGANI9ATIONAL ORGANI9ATIONAL DESIGN 3./.0.. DEPARTMENTATION
Departmenta Departmentation tion is the logical process of grouping grouping of activities activities,, or the process process of grouping o#s in a logical arrangement through which the organi-ational goals or o#ectives can #e achieved. 't is also the process of division of work into various sections or departments or divisions, over which a manager has authority 4 responsi#ility for performance of specified activities. !asically there are four ways for organi-ational departmentation. i&
Departmentation #y function
ii&
Departmentation #y product
iii&
Departmentati ation #y ge geogr ography phy
iv&
Departmentati ation #y #y custome omer
The departmentation in )!*C has #een done purely on functional #asis, in the following mannerH This division is known as the eyes and ears of the top eecutives of the 3rgani-ation .'t keeps them informed of any contravention of #ank regulations #y any #ranch?department or the
staff and also proposes remedial measures to set it right. 'n the )!*C there are three types of 5uditing, i.e. 'nternal 5udit, Lternal 5udit and S!P 5udit. 'nternal 5uditors 5uditors are assigned to make comprehensive c omprehensive audit on yearly #asis of all #ranches. 5 separate team of 5udit Division is deputed to make sure the compliance of all irregularities, pointed out during their inspection. The !oard of Directors of The )!*C has appointed Lternal 5uditors for comprehensive audit of all #ranches on yearly #asis. The !3D of The )!*C has to appoint any Chartered 5ccount 5ccountant antss from from the approv approved ed list list of The S!P. S!P. Since Since they they are eternal eternal auditor auditorss and approved for S!P, therefore they prepare all the financial statements of The )!*C. Since S!P is the central #ank of the country and it has a right to carefully monitor all the activities of all #anks, therefore they also conduct their audit in The )!*C on a yearly #asis. 'n case, any #ank violates
SPAN OF CONTROL PROVINCIAL CHIEF
GENERAL MANAGER
CHIEF MANAGER
MANAGER
ASSISTANT MANAGER
STAFF
3./.0.0. CHAIN OF COMMAND The affairs of the Corporation are managed #y a !oard of si Directors appointed #y *ederal Government, including the anaging Director who is appointed in consultation with State !ank of Pakistan. The anaging Director is the Chief Lecutive and Chairman of the !oard of Directors and the Lecutive Committee. The meetings of the Lecutive Committee and the !oard of Directors are held from time to time to conduct the #usiness of the Corporation, in accordance with the )!*C 5ct and $egulations. 5ll the selections, promotions of employees of the Corporation %ecept the D?Chairman& and decisions as to their remuneration and #enefits are made #y the D?Chairman in accordance with the evaluation criteria and personal policies determined #y the !oard. 3./.0.2 CENTRALI9ATION=DECENTRALI9ATION
)!*C has decentrali-ed structure with limited levels of management. Decentrali-ed structure eliminates unnecessary costs. There is a -onal office in each region under the custody of General anager who is supervising and controlling all the activities of !ranch offices. The #ranch anagers of each !ranch directly reports to General anager a#out the activities of their concerned !ranch. There is 2uick decision making #ecause of greater hands on approach to the management.
3./.0.3.
FORMALI9ATION
There is highly formali-ed structure which provides proper awareness to the staff mem#ers a#out #oard of director1s rules and laws, as the organi-ation is older so there is highly formali-ed structure with well defined rules and regulations. $ole of each mem#er of an organi-ation is well defined with their specific tasks and responsi#ilities. Staff mem#ers are provided with the awareness a#out new happenings and activities of an organi-ation.
9.:.B.A.
WORK SPECIALI9ATION
Lvery employee has #een trained in their respective area of speciali-ation, there is training programs provided to the employees for increasing their #etter performance and to resolve conflicts. 3./.2. MANAGING CHANGE AND INNOVATION
)!*C has #een a household name traditionally associated with housing finance. The scenario changed with the entry of #anks and leasing? house finance companies in the housing finance sector from late 788@. )!*C had to, therefore, reconsider its whole #usiness philosophy which was rather inevita#le for its survival. The year :@@9 #rought with it a revolutionary change for the Corporation in all areas of its working including 3perations, )uman $esource, 5dministration, *inance, 'T, etc. as well as client service.
The strategic changes #eing initiated are epected to help )!*C emerge as a vi#rant and customer friendly housing finance institution there#y esta#lishing more firmly its age old place in the field of housing finance with a new look. )!*C occupies a special place in the housing finance #usiness as it has all along catered to the needs of the lower and lower middle income groups whereas the commercial #ank s have targets of high profile clients. Presently, nearly >9 of )!*C1s clients are lowincome people where loan amount is less than $s.7@@,@@@ whereas nearly >@ clients have per party loan #elow $s.9@@,@@@. The poor sections of the society take )!*C as their partner in housing finance.
*or )!*C, its social role is an integral and insepara#le part of its commercial stance. 't has to cater to the needs of the people who have small means, striving hard to have at least a shelter of their own in their lifetime.
)!*C #elieves in focusing on more than >9 per cent of clientele who mostly seek housing loans of $s.7@@,@@@ and have monthly income #etween $sB,9@@ to $s9,@@@ and could only afford to pay an installment of $s7@@@ to $s7:@@ per month in 79 to :@ years #esides meeting their monthly ependiture of #asic necessities.
"ith the advent of the year :@@9, )!*C is striving for a new outlook with a new ideology. Conse2uently, it has changed its ision to
CRITICAL CHALLENGES TO H5FC
7. Tenancy laws. :. 'mplementation of foreclosure law B. Credit !ureaus I. Developer *inance 9. )ousing Schemes for *ederal?Provincial Govt. Lmployees. A. eena#led documentation verification . Training >. Lsta#lishment of $L'Ts. 8. Eand $egistration 'nformation System %E$'S&. 7@. Eand !anks. 77. *unding of )ousing Eoans. 7:. Eow Cost )ousing.
3./.3. MANAGING IT AND COMMUNICATION
The 'nformation Technology function %'T& in )!*C manages supports activities in the areas of software, hardware, networking, we#site, data protection, data archiving, data #ack up, data recovery etc. The main functions are;
. ESTA5LISING MAINTAING AND IMPROVING T H E STANDARDI9ED SOFTWARE. /. STANDARDI9ED HARDWARE SPECIFICATIONS 0. UNINTERRUPTED POWERSUPPLY U P S SPECIFICATIONS 2. NETWORK SPECIFICATIONS 3. 5'n#e# HARDWARE EUIPMENT <. P!%e%i!n A4'in"% SOFTWARE DATA5ASES @. Re41l' D'%' 5'81)"
3./.3.. ESTA5LISING MAINTAINING AND IMPROVING THE STANDARDI9ED SOFTWARE:
PURPOSE:
To provide help and assistance in planning, organi-ing implementing, maintaining and updating the standard application software, data#ases throughout )!*C, including the followingH 3n different Servers, following software are installedH a. "indows :@@B 3perating System with latest Service Packs; #. 3racle 7@g Data#ase; c. 'nternet Security 5ccelerator %'S5&; d. 5ntiirus Software; e. 5cro#at $eader, f. "in+ip /tility.
:. On #i,,een% W!8"%'%i!n" ,!ll!$in4 "!,%$'e 'e in"%'lle#: a. "indows 6P Professional Ldition 3perating Systems with Eatest Service
Packs;
#. icrosoft 3ffice :@@B; c. 5cro#at $eader; d. c5fee 5ntivirus Standard Ldition; and
e. "in+ip /tility.
REUIRED
To introduce the L$P, other necessary software, stateoftheart networking, and interactive we#site operations.
POLICY:
7. 't is the policy of the )!*C to achieve and maintenance its 'T infrastructure at the optimum efficiency level throughout 'T functions. 't will provide all re2uired resources towards achieving the o#ective.
:. 5ll the software ?software specifications would #e as per 'T policy of the anagement in force. 5ny software not in line with the 'T policy would not #e a part of the software to #e used. This software would #e installed in accordance with the prescri#ed procedure.
B. 5ll software installed on workstations is to #e identical to maintain the consistency of the software? specification within the organi-ation. These may however, differ on different servers according to the specific needs.
3./.3./. STANDARDI9ED HARDWARE SPECIFICATIONS:
PURPOSE:
To provide help and assistance in planning, organi-ing implementing, maintaining, and updating the specifications of the hardware throughout )!*C including the network environment that can fulfill the current and future re2uirements. The key concept is to maintain the uniform specifications hardware platform for efficient administration of PCs, and workstations.
POLICY:
7. 5ll the hardware? hardware specifications would #e as per 'T policy of the anagement in force. The hardware and #rand of hardware would #e uniform and compati#le, as far as possi#le, for hardware consistency within the organi-ation. :. The hardware having optimum level would #e o#tained? installed in accordance with the prescri#ed procedure. B. 5ll desktops and note#ook computers provided? to #e provided to the users %at present individual /PS systems are provided in critical areas& would #e gradually connected through a local area network %E50& to the main server suita#ly located. 't is planned to have the entire network placed on /ninterrupted Power Supply to ensure continuity of the systems.
3./.3.0 UNINTERRUPTED POWER SUPPLY UPS SPECIFICATIONS:
PURPOSE:
To maintain uninterrupted power supply to the crucial computers, network devices and other allied accessories related of 'T Division and other divisions?departments of )!*C.
POLICY:
5ll the critical servers, workstations, standalone computers, network devices, and other allied accessories must #e connected to the central /PS system.
3./.3.2. NETWORK SPECIFICATIONS:
PURPOSE:
To maintain the identical network devices, transmission speed, protocol, ca#les, and topologies for o#taining optimal network speed.
POLICY:
The network devices must #e identical and interopera#le to support optimal network speed for data#ase and 'nternet users.
9.:.9.9. HARDWARE EUIPMENT:
PURPOSE:
To provide guidance for accounta#ility regarding physical 'T assets of the )!*C. The 'T asset inventory is defined as the means #y which the hardware and software assets are accounted for within the )!*C domain.
POLICY:
5ll hardware and software operated #y divisions?sections of the )!*C will #e documented in compliance with all applica#le 'T asset management policies.
3./.3.<. SOFTWARE DATA5ASES:
PURPOSE
To esta#lish policies for the classification of electronically stored )!*C information and data.
POLICY :
Lach user must adopt and adhere to an information classification system that includes the etent to which information should #e disclosed to specified users, consistent with applica#le access, privacy, and confidentiality statutes.
3./.3.@. REGULAR DATA 5ACKUPS
PURPOSE:
To ensure that periodical #ack up of essential #usiness data are routinely related, and properly stored on safe premises, and data restoration procedures are prepared and tested.
POLICYH
!ackups of all essential #usiness data must #e routinely created and properly stored to ensure prompt restoration.
3./.3.. 5USINESS VALUE OF THE SOLUTION
The a#ovementioned solutions would help in reengineering the #usiness process and achieve a dramatic improvement in #usiness performance like;
7. *acilitate revenue generation and supporting functions and to cater to the relevant needs of the anagement, the stakeholders and the customers of )!*C #y providing them userfriendly and hassle free interface of various information technology facilities.
:. Provide stateofthe5rt systems to align with mission and vision of )!*C.
B. )elp in reengineering the #usiness process and achieve a dramatic 'mprovement in #usiness performance.
I. These improvements will document organi-ation1s #asic processes, methodologies and procedures associated with 'nformation technology and would provide clear understanding to all the users. 9. !y setting guidelines and procedures relating to the protection of its valua#le information, financial and technological assets will avoid unauthori-ed use and disclosure resulting loss to the Corporation.
A. These improvements will provide #asis and implementation of security controls that reduces risks and system vulnera#ility. . This will define roles and responsi#ilities of users, 'T function and 'T Steering Committee, to have proper control of 'T functions.
>. These efforts will make useful evidence to its regulators, credit rating agencies, authori-ed audit firms, clients?customers, etc. which will affect the #usiness of organi-ation.
8. The Customer satisfaction could #e achieved #y making these improvements.
3./.3.B. IMPACTS ON THE CURRENT WORKING SYSTEM
This computer#ased system perform the following activities. . D'%' Se1i%*
/nlike the eisting system the proposed system will provide the data security for the end user. /. Fleibili%*
5ddition of new units and handling of new application will #e possi#le, which makes it more flei#le. 0. E'"e In M!#i,i'%i!n
The system facilitates the modification procedure. 't will help the user in modification in the proposed system. 2. E'"e In D'%' En%*
Data entry is a process of su#mitting data into the computer for processing. The system provides an efficient, relia#le and interactive data entry facility. 3. U"e Fien#l*
The system is organi-ed in such away that user can easily understand the working mechanism. The system is menu drive. <. E,,iien*
The system will #e much faster, efficient and relia#le. @. Mini717 S%!'4e S)'e
Computeri-ing a system also has an advantage of re2uiring less storage space. . Re!# Kee)in4
The system is capa#le in keeping the record of the customers, Lchanges, Ca#inets, DP1s.
Se1i%*
The computeri-ation of the system provides full security to the records, #ecause in computeri-ed system data#ase is secured. 3nly authori-ed persons can access and retrieved data.
H'#$'e S!,%$'e Sele%i!n
)ardware and Software are the #ack#ones of a computeri-ed system. The efficiency of the system depends upon the choice of #etter hardware and software. 7:
*acilitate revenue generation and supporting functions and to cater to the relevant needs of the anagement, the stakeholders and the customers of )!*C #y providing them userfriendly and hassle free interface of various information technology facilities.
7B
Provide stateofthe5rt systems to align with mission and vision of )!*C.
7I
To help in reengineering the #usiness process and achieve a dramatic 'mprovement in #usiness performance.
GANTT CHART
ACTIVITIES
==/ TO 3==/
3==/ TO ==/
==/ TO 3==/
3==/ TO /==/
/==/ TO /3==/
/3==/ TO 0==/
DATA 5ACKUP REPORTS CI5
RISK MANAGEMENT
$isk management is the human activity which integrates recognition of risk , risk assessment, developing strategies to manage it, and mitigation of risk using managerial resources.
The strategies include transferring the risk to another party, avoiding the risk, reducing the negative effect of the risk, and accepting some or all of the conse2uences of a articular risk. . /authori-e access #y the Top anagement to Data. /. 'mproper #ackup management 0. /se of poor 2uality Data switches. 2. 'nterrupted?fluctuation in power supply. . RESOURCE MANAGEMENT
'nformation $esource anagement is responsi#le for the ongoing management of data within and across 5dministrative Computing. 7. 5dminister and assist Data 5nalysts, Developers, and Data Stewards in protecting and maintaining the 2uality and integrity of their data. :. Promote adherence to common standards, orally and in writing, to ensure data consistency and data accuracy. B. 5ctively participate and effectively communicate computing and infrastructure issues in teamwork environments to guarantee data 2uality I. *oster technological ideas and solutions that #enefit not only 'nformation Technology, #ut also the /niversity as a whole. 9. 5dminister 'T principles for the data structure; the policies, procedures, and standards, which support the data architecture.
3.0.
LEADING
3.0.. Le'#e"&i) "%*le
There is visionary leadership in various housing issues although it is risky #ut it is necessary to provide awareness a#out various issues to the world and make sure that all the activities have #een carried out properly or not. Clear vision is the main purpose of the leaders of )!*C. Eeadership style in traditional leadership theory is how you relate to su#ordinates.
'n our knowledge driven world, the power to lead is shifting to the power to promote new ideas, a #etter way, #ased on innovation. The meaning of leadership now should #e simply the successful promotion of new directions. Eeaders show the way. The #eauty of this definition of leadership is that it is consistent with market leadership or leadership in sports where one individual, team or organi-ation shows the way for others. !y focusing our attempts to define leadership on what it means to #e the head of a group, we have created a very distorted picture of leadership. *rom this point of view, there is only management style. There is no such thing as leadership style. Eeadership style is the manner and approach of providing direction, implementing plans, and motivating people. There are normally two styles of leadership in )!*C, depending on the circumstances around; 5uthoritarian or autocratic o o
Participative or democratic
AUTHORITARIAN OR AUTOCRATIC
This style is used when the leader tells their employees what he wants done and how he wants it done, without getting the advice of their followers. Some of the appropriate conditions to use it is when leaders have all the information to solve the pro#lem, they are short on time, and their employees are well motivated.
PARTICIPATIVE OR DEMOCRATIC
This type of style involves the leader including one or more employees in on the decision making process %determining what to do and how to do it&. )owever, the leader maintains the final decision making authority. /sing this style is not a sign of weakness, rather it is a sign of strength that their employees will respect. )!*C leaders %Top anagement& uses all two styles, depending on what forces are involved #etween the followers, the leader, and the situation. Some eamples includeH
•
/sing an authoritarian style on a new employee who is ust learning the o#. The leader is competent and a good coach. The employee is motivated to learn a new skill. The situation is a new environment for the employee.
•
/sing a participative style with a team of workers who know their o#. The leader knows the pro#lem, #ut does not have all the information. The employees know their o#s and want to #ecome part of the team.
3.2.
CONTROLLING
3.2.. CONTROLLING OPERATIONS
' have done my internship in -onal office Peshawar, here the head is General manager who is responsi#le for the controlling of operations. The General?+onal anagers are responsi#le within the areas of their urisdiction for the followingH
7. 3verall administrative control of the +onal 3ffice concerned, as well as the District 3ffices. :. 3rgani-ing and controlling the investment activities including 5ccounting and $ecovery operations. B. Conducting periodical tours of all District 3ffices to ensure efficient and smooth working. I. Lploring the possi#ilities of further epansion of Corporation1s investment activities and sending recommendations for opening of new offices in their areas of urisdiction to the Lecutive Director3perations. 9. Super inspection of houses in 9 cases of investment for sending report to )ead 3ffice. A. 'nspection of the site in all cases of final installment. . 5pproving the statistical data and statements concerning investment activities and ependiture etc.
3.2./. CONTROLING PERFORMANCE.
3.2./.. PERFORMANCE APPRAISAL SYSTEM. PERFORMANCE APPRAISAL:
The performance of employees of the !ank are appraised though their annual confidential reports at the end of each year. This has #ecome an outdated method of performance appraisal and no longer used due to the following reasonsH 7. The performance of employees is evaluated after 2uite a long time. :. Llement of su#ectivity is involved in this method. B. Lmployee1s participation is not ensured in the process of evaluation. I. 3#ectives of employee1s are not 2uantified. •
PROMOTION CRITERIA:
The criteria as approved #y the !oard, covers various parameters to #e considered, allocation of marks for individual achievements and Divisional ? Departmental performance as considered with reference to performance of the Corporation as a whole. •
PARAMETERS OF CRITERIA:
The parameter as discussed a#ove would specifically #e as followsH 7. Performance Lvaluation $eports :. Eength of stay in present grade B. 3perational duties in field offices and?or functions at )ead 3ffice and +ones. I. Performance of the field office and of various Divisions and Departments at )ead 3ffice. 9. 'mprovement in Lducational Oualification. •
TOTAL MARKS ALLOCATION:
3ut of total marks of 7@@, the individual allocations would #e as underH ITEMS MARKS Performance evaluation 9 reportsof five years Eength of stay in present 7@ grade, over and a#ove
COMMENTS
3ne %7& per year in present carde starting from Ath year.
minimum re2uirements *ield operational duty. Performance evaluation of field office? +onal office? departments at )ead office. 'mprovement in 2ualification since last promotion. Total •
@9 @9
@9
7@@
UALIFICATION OF ACRS (RATING+
arks allocated to annual confidential reports would #e as under. ery good Good 5verage !elow average
79 7@ @9 @@
Per year Per year Per year Per year
C&')%e <. CRITICAL ANALYSIS <.. C1"%!7e Rel'%i!n"&i)
'n the #ank the officers come across many customers daily. There is a need to improve the customer relationship in all the departments. The relationship manager has a very close contact with the customers and this is his duty to give proper guidance to the customers. "here as in )!*C ' have found that the customer relationship is not upto the satisfactory level. <./.
In'#e>1'%e T'inin4 P!4'7
5s the employee finishes his training he is induced in a specified field since he does not have knowledge a#out the specific o# assigned to him thus he feel difficulty to perform his o#. There is no special training given to the employees for motivating customers. <.0. S&!%'4e !, L'%e"% C!7)1%e" 'n# "8ill"
There is a shortage of latest computers and skills. They have #een using the same old computers; those are out dated now a day. 't results in the inefficiency of work. There is also lack of latest software, which results in slow processing. <.2.
P!! ?!b R!%'%i!n
There is no specific o# rotation in )!*C The all, Pesh. 3fficers spend most of the time in the same department. 5 person can spend years sitting in one department, performing the same duties. <.3.
L'8 !, Se1i%*
The most important aspect consider in the #ank is security. !ut in )!*C ' have seen that there was easy accessi#ility to account information. There was not enough security as far as the accounts were concerned. 5nyone can call and can get the information from the #ank, which has #een creating trou#le in the 3rgani-ation.
<.<. L'8 !, M!%i;'%i!n
otivation is the most important aspect in any organi-ation. There is a lack of motivation in the employees of all departments, which has to #e improved. !y motivating people they can create a change in the #ank. <.@.
I7)!)e W!8 Di"%ib1%i!n
' have noticed it through out my whole internship, which was also irritating for me that the work distri#ution is totally improper here. *ew people have to perform less responsi#ility with same grade and few have to perform more responsi#ility. <.. L'8 !, A))ei'%i!n
5nother very important thing that is ignored in different department is appreciation of the employees who work with dedication and efficiency. 'f hard work and performance of the staff mem#ers is not recogni-ed and appreciated, it dishearts them resulting in poor efficiency. <.B. L'8 !, eli'bili%*:
Customer service of the !ank lacks relia#ility i.e., what is promised is not provided dependa#ly and accurately to the customers. 5ll commitments while making prospective customers are not carried out in due course. <.. H17'n e"!1e 7'n'4e7en%:
)uman $esource plays a vital role in the success of every service organi-ation. They interact #etween man and machine. Their attitude can win or loose the customer. The positive attitude could only #e created in a conducive environment, which can make the staff dedicated towards the organi-ation and its o#ectives. 'n reality the man is more important than machine as it is the human which could get maimum out of machine to keep a happy customer. )owever, most organi-ations give little importance to this very important asset. arious aspects related to human resource of uslim Commercial !ank have #een critically eamined in the following tetH
<... Sele%i!n 'n# e1i%7en%:
5lthough the !ank #elieves in merit #ut in practice the selection of employees is not done on merit. ost of the employees are low educated and unskilled. This shows that candidates with some strong family #ackground or political pressure are recruited and 2ualified candidates are left #ehind. ?O5 FOR LIFE:
Eike the employee of pu#lic sector organi-ations in Pakistan, the employees of )!*C also enoy their o# for life. Since there is no risk of early retirement or redundancy in rank, they do not perform with their full potentials. This is one of the reason responsi#le for the low productivity of the employees of the !ank. STAFF SEEN AS ?O5 HOLDERS:
)uman resource of an organi-ation is regarded as knowledge and idea contri#utors. !ut the employees of C! are seen as o# holders only. 't lacks innovative personnel. Creativity is mistaken for opposition to the esta#lished order. <..2 INTERPERSONAL RELATIONSHIP:
odern management acknowledges human resources as one of the most important assets of an organi-ation. !ut #y their very nature, human #eings are also the most unpredicta#le. "here a num#er of persons work together, interactions among them, of necessity, will lead to conflicts and )!*C is no eception. 5s a whole ' have learned a lot during my internship, and faces the difficulties, challenges practically in doing something which make me capa#le of doing #etter, 5s for as our course work is concerned that was all theoretical and was a#out how to do something, ' was totally unaware of the hurdles and challenges which could #e faced in doing something #ut after completing my internship now ' am capa#le of accepting challenges and responsi#ilities not only in case of )!*C #ut in each and every field of my life and this is i think the greatest gain for mine.
C&')%e @. SWOT ANALYSIS OF ORGANI9ATION IN THE 5USINESS SECTOR SWOT ANALYSIS.
S"3T analysis is a strategic development tool that matches internal organi-ation strengths and weaknesses with eternal opportunities and threats. S"3T analysis is #ased on the assumption that if managers carefully review such strengths, weaknesses, opportunities, and threats a useful strategy for ensuring organi-ational success will #ecome evident to them S"3T analysis is an important tool to analysis the overall situation in which organi-ation is conducting its affairs; each issue remains relevant and useful of corporate strategy formulation. The purpose of a strengths 4 weaknesses analysis is to epress, 2uantitatively or 2ualitatively which areas of the #usiness have 7
Strengths that should #e eploited #y suita#le strategies;
"eaknesses for which strategies should #e developed to improve them.
The purpose of an eternal appraisal %opportunities 4 threats& is to identify profit making opportunities, which can #e eploited #y the organi-ation1s strengths, and also to anticipate environmental threats, which will affect competitors and the organi-ation as well. Thus internal and eternal appraisals are #rought together in a S"3T 5nalysis.
@.. STRENGTHS 7.
The 3ldest financial institution of Pakistan ,'n eistence over 9B years.
:.
)!*C target market is middle and lower income group, which is not facilitating #y any other financial institution for house making, we can say that )!*C is serving the 89 population of this country.
B.
)!*C is government financial institution due to which its reputation and image is stronger 4 more positive.
I.
)!*C has a large num#er of clients with #oth huge and medium Eoans, distri#uting loans all over country.
9.
)!*C has the com#ination of eperienced as well as young, active and inspired staff. This com#ination of old and new reflecting in the form of good services.
A.
(nowledge, Lperience 4 Eeader in )ousing *inance.
D. 8.
Penetration all over Pakistan %5-ad (ashmir and 0orthern 5reas& 5de2uacy of *unds. 3ver 9@ years of eperience in handling ortgaged Documents Eending to #oth lower , middle 4 high income group. 7.
7@.
Ltension and improvement in services to domestic as well as foreign customers.
77.
!est optional policies and attractive compensation packages for employees, which
>.
have really improved their commitments, dedication and headwork towards the accomplishment of organi-ation o#ectives. 7:.
)!*C offers various kinds of Schemes with varying features and interest rates, which is not offered #y other financial institutions, e.g. Small #uilders Eoan Scheme.
7B.
)!*C is a renowned #ank all over the country. 'ts #ranches are spread across all the regions of the country. Thus, ena#ling customers to make transaction more easily locally or out side the country. 't also has $epresentative offices in areas where it does not have any #ranch.
7I.
5 pleasant operational atmosphere develops the efficiency of the staff and also #oosts the employee1s motivation. *ortunately at )!*C Peshawar !ranch employees are in good relations with each other. The #urden of work is generally willingly shared #etween the employees. "hen any of the employees is on a short leave so other su#ordinate takes his work with care.
@./. WEAKNESSES
"eaknesses, like strengths are a part of almost every organi-ation. These weaknesses points out the potential areas of improvements and make the organi-ational #ehavior intelligent. 5 cumulative effort to overcome these flaws makes success possi#le. During the internship period the weaknesses that generally surfaced and were visi#le at )!*C Peshawar !ranch are as descri#ed #elow in detail.
7. 'ncrease 'ncrease in the nonperfor nonperforming ming loans loans due to political political,, economic economic and legal factors factors has adversely affected the #ank1s image. :. 5dministr 5dministrative ative epenses epenses are are increasi increasing ng every every year year.. B. Promotions Promotions are are carried carried out on annual annual #asis #asis ignoring ignoring the importanc importancee of capa#ilitie capa#ilitiess and performance outputs. I. Eengthy Eengthy Credit Credit processing processing and document documentation ation procedure proceduress are a weakness weakness of )!*C. )!*C. 9. 't is is only only oper operati ating ng natio national nally ly.. A. *ewer *ewer #ranch #ranches es as comp compare ared d to other other #anks. #anks. . There is no separate separate prayer prayer room room and and dinning dinning hall hall in the #ank. #ank. >. Political Political pressur pressuree from from vested vested interest interest group select selection. ion. 8. 0o mar market ketin ing g of advan advance ces. s. 7@. ost of the employees employees consider consider them selves selves to #e govt. employees and do not take interest in their work, which does affect a ffect the performance of the #ank %in the long run&. !eside this, the #ehaviors of the staff are some times very rude to their customers and naturally the customers want to wind up their accou nts in the )!*C as a result. 77. 77. Slow Slow down down in advan advance ce grow growth th in the the shor shortt term term as )!*C )!*C focu focuse sess on 2ual 2ualit ity y customers in the market. 7:. Custom Customers ers having accounts accounts with with small small amounts amounts are not given given same same servic services es and dealing, which is given to those who have high accounts. 7B. System System of recruitment recruitment and selection selection is not transparent transparent and few training training programs programs to unior level officers. 7I. The outlook outlook of an organ organi-a i-ati tion on plays plays import important ant role role in portra portrayi ying ng its its image image to customers. The )!*C Peshawar !ranch has a structure that is simple and not enough eyecatching that will attract customers. The interior of the #ank gives a crowded look. The atmosphere is professional. 't is not centrally heated and air conditioned, so as to provide customer and staff with #etter working condition in ev ery climate.
79. Performance Performance appraisal appraisal is generally generally considered considered a motivationa motivationall as well as evaluative evaluative tool. 5t )!*C its use is normally made in an eploiting fashion. Lvaluation is made on the #asis of the achievements of market targets. /nfortunately sometimes the market targets are always unachieva#le. Thus employees face the condition of #eing called inefficient at times. This is an annoying factor for some of the employees, which leads towards de motivation and aniety.
@.0. OPPORTUNITIES
3pportunities are the eternal circumstances, events or situations that offer an organi-ation the chance to achieve its o#ective. The #ank has the following opportunities that can #e availed. 7. They have the the opportunity opportunity to open open new #ranches #ranches in the the country country as well as as in foreign foreign countries. They should open new #ranches at least at the district level. They have the opportunity to open new #ranches especially in in the rural areas of Pakistan.
:. Growing Growing policies policies of governm governments ents on #usiness #usiness and and commerce commerce sector sector provided provided )!*C an opportunity to efficiently meet with the #usiness people1s re2uirements of instant cash and financing facilities. B. The )!*C has has the opportunit opportunity y to hire skille skilled, d, professional professional and and educated educated persons persons who are specia specialili-ed ed in the course course of #ankin #anking g and account accountancy ancy like like C51 C51s %Chart %Chartere ered d 5ccountants& 4 !51s. I. Custom Customer1 er1ss feed #ack on diffe differen rentt produc products ts and accounts accounts has really really impro improved ved the #ank performance and encourage the atmosphere for other future polices. 9. )!*C also has an an opportunit opportunity y to epand new technolo technology gy.. A. $econstruct $econstruction ion of 5fghani 5fghanistan stan is a great great opportunit opportunity y for the )!*C )!*C to grow grow #y )ouse financing in the waraffected waraffected areas. . Lpand Lpand its product product line similar similar to other competit competitive ive #anks #y introduc introducing ing various various other modes of consumer financing such as financing for the purchase of plots. >. Lpa Lpans nsio ion n of 'T 'T pla platf tfor orm. m.
8. Strong Stronger er posi positio tion n to recove recoverr #ad #ad de#ts. de#ts. 7@. !enefits from from incoming epertise epertise and competition. competition.
@.2. T&e'%"
7. 'ncr 'ncrea ease se in com competi petiti tion on due due to the the rapi rapidl dly y grow growin ing g num# num#er er of fore foreig ign n and and domestic private financial institutions offering highly speciali-ed and attractive financial services. :. $educti $eduction on in develop developmen mental tal activit activities ies and foreign foreign direct direct investm investment ent due to the shaken investors1 confidence confidence has also lead to a fall in the #ank1s epansion pace. B. Ltens Ltensive ive promot promotion ional al campaign campaignss run #y the other other #anks #anks are a maor maor threat threat to )!*C in that they are a#le to attract more customers. I. The Political Political insta#i insta#ility lity,, which is is #ig threat threat to the polici policies es of State State !ank. 9. /nco /ncons nsis iste tency ncy in gover governm nment ent polic policie iess rega regard rdin ing g to #usi #usines nesss and and econom economic ic sector. A. Growin Growing g glo#al glo#al techno technolog logica icall advancem advancement ent.. . Strict Strict regulat regulation ionss #y the governm government ent over credit credit faciliti facilities es to the custome customers rs as to meet the prudential regulations. >. Eoss of confidence confidence of the the customers customers due to lengthy lengthy loaning loaning procedu procedure. re. 8. Concentratio Concentration n risk is involved involved with the credit credit departm department. ent. 7@. 7@. The The step step of 'sla 'slami mi-a -ati tion on of #ank #ankss in Paki Pakist stan an is a #ig #ig thre threat at for for the the )!*C )!*C.. !ecause the whole #anking system will #e changed. 77. Changing Changing of customer customer needs. needs.
C&')%e . CONCLUSION AND RECOMMENDATIONS FOR MPROVEMENT
CONCLUSION
)!*C was esta#lished in 789: as a financial institution. The main o#ective of the Corporation was to #e a socially responsi#le and commercially sustaina#le housing finance institution.
R". In 5illi!n":
*rom the year 789B to :@@:, Total dis#ursed amount $s. B@ #illion
14.45 12.8
2.311 0.448 0.080
!st 10 "ear
2n# 10 "ear
3r# 10 "ear
4th 10 "ear
5th 10 "ear
The overall performance of )!*C in terms of profita#ility and growth had #een declining in the very #eginning, the main reasons responsi#le for this poor performance of )!*C were stuckup loans, overependiture and overstaffing. Then the anagement took revolutionary steps, )!*C offers variety of services to its customers. The most important to them are 'slamic products. )!*C is now having #ranches
in all cities of Pakistan offering services to its accounts holders and also ev en to nonaccounts holders. )!*C is offering innovative schemes these days. The important among these are Small !uilders loan facility, for construction and sale of small houses?flats 'n conclusion one can say that )!*C has played a #ig role in the creation and the development of the country. 3ne thing significant a#out this institution is that it has always sacrificed monetary consideration over national interest. This fact raises the )!*C a#ove all in the services of Pakistan. 'n my opinion )!*C is improving its performances at present for the hope to succeed in future.
./. RECOMMENDATIONS 7. 5s with other functions of management, esta#lishment of o#ectives and orderly planning are necessary for good organi-ation. Planning helps determine future personnel needs and attendant training programs. "ith out knowing what managerial personnel will #e needed and what eperience to demand, an enterprise cannot intelligently recruit people and train them. *urther more, organi-ational planning can disclose weaknesses in the organi-ation and other aspects keeping in view the importance of planning, it cannot #e ignored. :. *or promotion and marketing purpose if media services are used through commercial and through print media this can help the promotion of )!*C in many ways. B. There should #e proper o# rotation in the #ranch so that every officer is familiar with the work of all departments. I. !efore making any decision in planning its activities, should properly forecast to see that the decision which they are likely to take as any good or #ad implementation for the 3rgani-ation and for the economy as a whole. 9. 'n decision making every one should #e involved, which will also improve relationship #etween management and employees. 5ll the department head should #e given full authority regarding decisionmaking.
A. )!*C should adopt once again aggressive strategy #ecause the num#er of its competitors is increasing day #y day. . The communication system of the #ank should #e improved #y installing new e2uipment1s. !ecause Coordination can #e improved among different department #y adopting proper channels of communications. >. $egular staff appraisal will screen the shortcomings, with this reinforcement factor, desira#le performance can #e o#tained and every employee will get fair treatment. 8. To have #ig promotion of customer in market product with good attri#utes should #e offered at reasona#le price. 7@. anager should try to reinforce work on employees in positive ways. $ewards should #e given for their #etter performance. !enefit should #e given. They should #e properly motivated to increase efficiency. 77. anagement #y 3#ective needs to #e introduced immediately. 't will help improve in the functioning of #ank and will lead to greater participation. 'n !3 system there is proper coordination of employees at all levels. 7:. Eoan procedure should not #e cum#ersome and should #e made easy, so as to ease the customer. 7B. "hile auditing advances the auditor should see that advances are sanctioned according to S!P rules and regulation. 7I. 5s mentioned a#ove employees take undue leave from #ank. /nnecessary leaves are given to the employees. Those who are fre2uently a#sent must #e punished. There should #e a cut in the leaves. 79. /nions should not #e over powered. They should not always #e encouraged. 'n order to solve the pro#lem of unions, law must #e clear to all mem#ers and there should not #e any concession to the one who has done wrong. 7A. Since in )!*C there is overlapping of functions, therefore each department should #e functionally defined, and all those departments should #e amalgamated whose functions are similar, to reduce cost.
7. 'n order to mitigate inefficiency, the management should adopt some management principle i.e. proper o#, clear cut division of work should #e introduced. 7>. The advances department should #e made free from political influence in order to ena#le the deserving persons to get the loan. 78. The #ank should prefer tangi#le securities #efore advancing loan. :@. The #ank should take care that the loan that it has advanced is #eing utili-ed for the purpose for which it is advanced. :7. There should #e proper training %/p to date& for newly selected employees. ::. There should #e refresher courses for officers then to tackle marketing compleities. :B. )!*C should also send employees for training and seminar arranged #y other #anks, so that they can compare the procedures adopted #y other !ank, and adopt what ever #etter and new. :I. Salaries should commensurate with o#, for this purpose a proper o# analysis system should #e introduced. :9. Transfer for punishment purpose should #e avoided #ecause it not only distur#s the prevailing #ranch conditions #ut it also affects employeeUs efficiency. ore over the transfer should #e made free from union influence. :A. !efore transferring a person to a place, his 2ualification and eperience should #e matched with responsi#ilities of the post.
