The Bank of Khyber (Internship report) Chapter-3

CHAPTER 3                                                                                                    HISTORY OF THE BANK OF KHYBER

The Bank of Khyber is one such bank, which came into being after the passing of a Resolution in the Provincial Assembly of NWFP in 1991. The focus point for the establishment of this bank is to provide employment opportunities for the man power of this province & to provide financial assistance to the people of NWFP, who are engaged in small, medium and large scale businesses. Most of the nationalized commercial banks have their Head Offices in provinces other than NWFP, which is the main hindrance to availing loan in time from these banks. The banks have to take formal approval from their H/O in order to advance loans to their customer or to make some transactions within the branches. Therefore, it was felt that there was a great need to have a bank which has its Head Office in the same province also, so that there could be no time delay, communication gap or provisioning of documents to advance loans expeditiously. Initially, the Bank of Khyber had agency arrangements with ABL and MCB for clearing and collecting cheques from other banks, but with the grace of Almighty Allah and the hard work of its management, it became a scheduled bank. It started its operation in SBP and to have a clearing officer of its own for clearing purposes and tackling of other matters with SBP. Presently, this bank has started to work as an agent for all its branches in Peshawar and other cities where SBP arrangements are not possible. In 1995, the BOk availed an opportunity for a Foreign Exchange license and its corporate main branch became the first authorized dealer to deal in foreign exchange business and trade services/finance. Now, other than its branches in the NWFP, the Bank of Khyber has its network of branches in Islamabad, Lahore, Karachi and Muzaffarabad also.

The Bank is providing loans to private as well as public sector organizations, not only for the prosperity of the people but also for the development of NWFP. In this way, job opportunities surface in different sectors, mainly for the people of NWFP, which may help the country get out of the clutches of unemployment and related poverty problems.

Besides, the Running Finance & Demand Finance facilities, it has also started loaning for small clusters, which has a separate controlling department called the Micro Finance Department. MFD has been introduced to cover the businesses, which are on a small scale either in the shape of shops, small projects or home- level projects of ladies, like “embroidery, beauty parlours & stitching centres. This level of loans may be advanced to customers, after they provide two guarantors to The BOk.

The SBP has recently allowed the opening of banks and branches based on a pure Islamic Banking System in the country. For the said purpose an Islamic Banking Department has been established by the SBP to provide necessary guidance to the banks and concerned staff. They have also instructed all the banks to introduce necessary steps for promotion of Islamic banking. In pursuance of the SBP instructions an Islamic Banking Division has been established by the Bank of Khyber to evaluate and implement policy and procedural matters to cater to the Islamic banking demand of our valued customers. The recruitment of suitable staff for Islamic banking operations and their necessary training arrangements are under process.

BRANCH NETWORK

1.                  Main branch                                                                                                                                                                                                                                                       

2.                  University road

3.                  Islamic Branch Hayatabad

4.                  G.T. Road

5.                  Sadder road branch

6.                  Civil Secretariat Branch

7.                  Khyber Bazar Branch

8.                  Ashraf Road Branch

9.                  Kohat branch

10.              D.I.Khan Branch

11.              Abbottabad Branch

12.              Islamic Branch Bannu 

13.              Mardan Branch

14.              Nowshera Branch

15.              Chitral Branch

16.              Mingora Branch

17.              Hattar Branch

18.              Mansehra Branch

19.              Hangu Branch

20.              Haripur Branch

21.              Charsada Branch

22.              Tank Branch

23.              Timergara Branch

24.              Muzzafarabad Branch

25.              Lahore Branch

26.              Islamabad Branch

27.              Karachi 1 Branch

28.              Karachi 2 Branch

29.  Islamic Branch Quetta

Board of directors

             Mr. Laiq Shah   (Chairman)

             Mr. Zia-ur-Rehman (Director)         

             Mr. Ghulam Dastgir Akhtar (Director)

             Dr. Muhammad Zubair Khan (Director)

             Mr. Muhammad Asif (Director)

             Prof. Muhammad shakir siddique (Director)

             Syed Iqbal Ashraf ( Managing Director)

             Mr. Turan Caglayan (Director)

              Mr. Qazi Muner ul Haq (Acting Managing Director)

    

             ORGANISATION STRUCTURE OF BOK

ORGANISATION STRUCTURE

“Organization is a formalized intentional structure of roles or positions.”

The essence is that the people who are structured and coordinated will definitely be working in a proper system. This system includes both organizational hierarchy and organizational chart.

ORGANIZATION HIERARCHY

To avoid the conflicts in the organization, all organization positions are detailed described and the duties, goals, functions, responsibility and authority at each position are made crystal clear.              

The channels which delegates these activities are called organization hierarchy and this must be set in such a manner to best accomplish the organizational goals.

The bank of Khyber ultimate governing body is the board of directors while the day to day affairs of the bank are managed by a managing director appointed by the board of directors for a term of three years on contract with the consent of the Government of NWFP. Under the supervision of MD there are EVP’s the senior most officials in the bank hierarchy each heading a bank unit. After EVP there are SVP’s and VP’S heading their respective divisions and departments.

At the branch network of BOK there are branch managers and assistant branch managers there are branch departmental heads responsible for their respective branch department.

The nomenclature of various posts:

The nomenclature of various posts in the bank is as under:

w                    Executive Vice President

w                    Senior Vice President

w                    Vice President

w                    Assistant Vice President

w                    Officer Grade-I

w                    Officer Grade-II

w                    Officer grade-III

w                    Junior officer

w                    Driver

           

Organization Chart

The organization chart merely shows that how the departments are tied together with the principal line of authority. There are several types of organizational charts and structures, each having its merits and demerits.

The Bank of Khyber has an organizational chart prescribed by the BOD and modified from time to time adjust the changes in the bank occurring due to growth, environment, competition and technology. The new organizational chart recently promulgated divides the bank into 4 units. Each unit headed by an EVP. These 4 units are further divided into 6 divisions and each headed by a senior vice president.

The 7 divisions are further divided into 20 departments, each headed by a departmental head of VP or AVP rank. The audit division will work independently directly under the control of MD and headed by an SVP and further divided into two departments.