THE BANKER’S FUND
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The funds available to a banker for the
purpose of his business.
Normally consists of the following:
Bank’s capital through issuance of shares.
The Reserve Fund.
Liquid Assets.
Deposits by the Customers.
THE BANKER’S FUND
The Reserve Fund.
 Fund created from the profit of the bank to
meet any contingency obligations.
 Obligation on all the banks under banking
ordinance 1962.
THE BANKER’S FUND
Liquid Assets.
 Obligation for all the banks to maintain liquid
assets under banking ordinance 1962.
 The amount of liquid assets should be 35% of
the total liabilities.
 Includes Cash in hand, Balance with the S.B.P,
D.A.C etc.
THE BANKER’S FUND
Deposits ( The Life Blood of a Bank).
 Money collected from the customers for
deposit.
 The volume of the deposit is much bigger than
other sources.
 This money is further used for lending purposes.
 Greater the difference between lending and
deposit percentage, greater will be the profit and
same applies for the volume of deposit.
THE BANKER’S FUND
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One of the basic functions of banks is to collect
deposits.
It creates the relation of Debtor (Bank) and
Creditor (Customer).
The bank then uses these funds but is liable to
pay bank upon demand.
THE BANKER’S FUND
Nature of Deposits.
 Broadly classified in to following categories.
1. Current Deposits.
2. Fixed / Time Deposits.
3. Saving Deposits.
 Classified on the basis of duration and
purpose of deposit.
THE BANKER’S FUND
Current Deposits.
 No Profit No loss deposits.
 Amount payable to customer when ever it is
demanded.
 Payments done through cheques till the balance
limit.
 Customer is required to maintain a minimum
balance in current account otherwise charges
will be deducted
THE BANKER’S FUND
Fixed or Termed Deposits.
 Deposits which are fixed for a specific time
duration.
 Time duration varies ( 1,3,5 Years)
 Interest (profit) is paid and the percentage
depends upon the time period.
 In case of premature encashment deductions are
made from the interest / profit.
THE BANKER’S FUND
Savings Deposits.
 Normal accounts like current accounts.
 Customer can deposit amount which can be
withdrawn through cheques.
 Certain amount of interest is paid based upon
amount of deposits.
 Normally any kind of customer can open saving
account.
THE BANKER’S FUND
Non Resident Accounts.
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Accounts of individuals, firms or companies
residing in countries outside Pakistan are known
as “ Non Resident Accounts”
Non resident accounts are categorized as
following.
THE BANKER’S FUND
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Accounts of Pakistan national permanently
resident and domiciled abroad.
Accounts of Pakistan nationals who got out
of Pakistan for a short duration in connection
with study, business tour or entertainment trip.
Accounts of foreign nationals ordinarily
residing in Pakistan but go abroad for a short
duration.
Accounts of foreign nationals residing abroad.
THE BANKER’S FUND
Debits from the Non Resident Account.
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Payment on behalf of the account holder direct to the
institutions concerned in respect of insurance premium, club
bills or other payments of regular nature. These payments must
be supported by receipts and bills, vouchers etc.
Payments of Government and municipal dues.
Disbursement in Pakistan from the amount received from
abroad in the account through banking channel.
Amount representing payments through Cheques direct to the
carrier or the travel agent for travel within the country by train,
sea, or air for self, wife, children and parents.
Amount needed to purchase the share of public ltd companies,
N.I.T units, Prize binds, Defense saving certificates etc.
THE BANKER’S FUND
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Payments against bills for hotel expenses in
Pakistan of the account holder and his family.
Cheques drawn for self or in favor of his
dependents residing in Pakistan for their
maintenance.
Amount to reverse previous credits.
Payment of Loan Installments.
THE BANKER’S FUND
Credits in the Non Resident Account.
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Receipts on account of salary, allowances, bonus,
commission etc through Cheque.
Dividend or Interest of an investment through cheque.
Income from landed property and agricultural rent
against identity of depositor.
Credit of remittances received from abroad through
banking channel.
Interest accrued on the account.
THE BANKER’S FUND
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Sale proceeds of landed property as supported by a
registered sale deed.
Amounts representing the maturity proceeds of
insurance policy and sale proceeds of the shares of the
public limited companies.
Refund of amounts previously debited or overcharged.
ALL THESE DEBITS/CREDITS
REQUIRE S.B.P APPROVAL.