FBL HR Policies Final

Personal & Confidential

HR Policy Manual

(Version – 2)

HUMAN RESOURCES FUNCTION


HR Policy Manual.........................................................................................................................................................Page 2 of 145

FAYSAL BANK LIMITEDHR Policy Manual

PREFACE

The HR Policy Manual contains the main HR Policies and procedures of Faysal Bank Limited. The objective of the Manual is to guide all employees and keep them fully informed of the Bank’s rules and regulations.

The HR policy manual is not a legal document; it is a guide to human resource management at FBL.

Line Managers play an important role in the execution of policies and should therefore familiarize themselves with the contents of the Manual. This will help to ensure that all employees act in line with the Bank’s policies at all times.

The updated HR Policy Manual is available on the SOP server and accessible by all employees, post the implementation of HRMS Learning Module, the HR Policy Manual will be available from this site.(http://fblapps.faysalbank.com:8000/OA_HTML/AppsLocalLogin.jsp)

To further facilitate, Functional Heads however, will be given a hard copy for ready reference.

The HR Policy Manual is accessible to all and you are all encouraged to read it. In case of clarifications relating to any section of the Manual, please feel free to contact your relevant HR Business Partner and/or Head of Rewards, Policies and Projects, who is the custodian of the HR Policy Manual.

HR Policy Manual will be reviewed and updated on a regular basis as and when policies are revised, employees will be informed accordingly. You are all requested to keep yourselves updated by visiting the HRMS or the SOP server.



REFERENCES

“FBL” means: Faysal Bank Limited

“Bank” means: Faysal Bank Limited

“Management” means: The management of Faysal Bank Limited

“Staff” means: Staff of Faysal Bank Limited

“Competent Authority” means : Management of Faysal Bank Limited

“CAD” means: Credit Administration Department of Faysal Bank Limited

“P&CEO” means: President and Chief Executive Officer of Faysal Bank Limited

“HR” means: Human Resource Function of Faysal Bank Limited



TABLE OF CONTENTS

Section A: VISION, MISSION AND VALUES ................................................................ 9

VISION & MISSION ..................................................................................................................................9

VALUES....................................................................................................................................................9

HR VISION STATEMENT.......................................................................................................................10

CORPORATE CULTURE .......................................................................................................................11

REVIEW OF POLICIES ..........................................................................................................................11

EXCEPTIONS.........................................................................................................................................11

Section B: RECRUITMENT AND RESOURCING........................................................ 13

PHILOSOPHY.........................................................................................................................................13

RECRUITMENT......................................................................................................................................14

RESOURCING........................................................................................................................................15

CONDITIONS OF EMPLOYMENT.........................................................................................................17

JOB ROTATION .....................................................................................................................................20

TRANSFERS ..........................................................................................................................................21

MANAGEMENT TRAINEE PROGRAMME ............................................................................................22

TRAINEE OFFICER PROGRAM............................................................................................................23

TRAINEE CASH OFFICER PROGRAM.................................................................................................23

INTERNSHIP PROGRAM ......................................................................................................................24

Section C: CONDITIONS OF EMPLOYMENT............................................................. 26

PROBATION...........................................................................................................................................26

PROBATIONARY PERIOD ....................................................................................................................26

NOTICE PERIOD ...................................................................................................................................26

RESIGNATION .......................................................................................................................................28

DISCIPLINARY ACTION ........................................................................................................................29

FRAUD & FORGERIES..........................................................................................................................35

Section D: WORKING ENVIRONMENT ...................................................................... 40

NO SMOKING POLICY ..........................................................................................................................40

DRESS CODE ........................................................................................................................................41

LATE SITTINGS .....................................................................................................................................42

PUBLIC SPEAKING IN CONFERENCES, SEMINARS & WORKSHOPS.............................................43

AUTHORITY TO RESPOND TO MEDIA................................................................................................44

BUSINESS CARDS ................................................................................................................................45



FLEXIBLE WORKING HOURS ..............................................................................................................46

SPORTS CLUB.......................................................................................................................................47

Section E: REMUNERATION & ORGANIZATION ...................................................... 49

CASH ALLOWANCES............................................................................................................................49

HAJJ .......................................................................................................................................................50

Section F: PERFORMANCE MANAGEMENT & REWARDS...................................... 52

JOB ANALYSIS, SPECIFICATIONS AND GRADES .............................................................................53

PAY-SCALES AND SALARIES..............................................................................................................54

PERFORMANCE MANAGEMENT.........................................................................................................55

ANNUAL PERFORMANCE APPRAISAL ...............................................................................................56

SPOT REWARDS...................................................................................................................................58

CEO’S CLUB ..........................................................................................................................................59

EDUCATION ASSISTANCE PROGRAM ...............................................................................................60

REWARD FOR PASSING IBP DIPLOMA EXAMINATION ....................................................................61

PERFORMANCE BONUS ......................................................................................................................62

TAX LIABILITY/DEDUCTIONS FROM SALARY....................................................................................63

Section G: LEARNING & DEVELOPMENT................................................................. 65

PURPOSE ..............................................................................................................................................65

LEARNING & DEVELOPMENT STRATEGY .........................................................................................65

Section H: LEAVE POLICY ......................................................................................... 67

CASUAL LEAVE.....................................................................................................................................67

SICK LEAVE...........................................................................................................................................67

PRIVILEGE / ANNUAL LEAVE...............................................................................................................67

MATERNITY LEAVE ..............................................................................................................................68

PILGRIMAGE LEAVE.............................................................................................................................68

LEAVE WITHOUT PAY ..........................................................................................................................68

FACILITY OF SATURDAYS OFF...........................................................................................................69

OFFICE TIMINGS...................................................................................................................................69

Section I: BENEFITS ................................................................................................... 71

GROUP LIFE INSURANCE....................................................................................................................71

MEDICAL COVERAGE ..........................................................................................................................72

HOSPITALIZATION INSURANCE..........................................................................................................73

CLUB MEMBERSHIP .............................................................................................................................74



CAR POLICY ..........................................................................................................................................75

CELLULAR PHONE BILL REIMBURSEMENT ......................................................................................80

LEAVE FARE ASSISTANCE..................................................................................................................82

EDUCATION SUBSIDY..........................................................................................................................83

FIXED BONUS........................................................................................................................................84

PROVIDENT FUND................................................................................................................................85

GRATUITY..............................................................................................................................................86

Section J: STAFF LOANS ........................................................................................... 88

HOUSING FINANCE / MORTGAGES....................................................................................................89

CAR LOAN..............................................................................................................................................94

PERSONAL LOAN .................................................................................................................................95

MOTORCYCLE LOAN............................................................................................................................96

Section K: TRAVEL POLICY....................................................................................... 98

DOMESTIC TRAVEL..............................................................................................................................98

INTERNATIONAL TRAVEL ..................................................................................................................100

GENERAL RULES................................................................................................................................101

Section L: RELOCATION POLICY - DOMESTIC...................................................... 104

ONE-TIME TRANSFER ASSISTANCE................................................................................................105

RENTAL SUBSIDY...............................................................................................................................105

FREIGHT AND MOVING CHARGES...................................................................................................106

SCHOOL ADMISSION FEE ALLOWANCE..........................................................................................106

Section M: CODE OF CONDUCT.............................................................................. 108

CODE OF CONDUCT ..........................................................................................................................108

CODE OF CONDUCT FOR SALES STAFF.........................................................................................117

GIFTS ...................................................................................................................................................121

INITIATION OF COMMUNICATION WITH REGULATORS ................................................................122

MARKETING RESEARCH COMMUNICATION AND COMPLAINTS..................................................124

MEDIA AND ADVERTISING ................................................................................................................126

CLIENT ACCEPTANCE AND ANTI MONEY LAUNDERING (CAAML) POLICY ................................128

INSIDER DEALING ..............................................................................................................................131

TRADING & TRANSACTIONS.............................................................................................................135

CLIENT CONFIDENTIALITY & CONFLICTS OF INTEREST ..............................................................137

WHISTLE BLOWING............................................................................................................................138

DONATION POLICY.............................................................................................................................140



CORPORATE SOCIAL RESPONSIBILITY (CSR) Policy ....................................................................141

Section N: HR HELPLINE.......................................................................................... 144



VISION, MISSION & VALUES

SECTION ‘A’

Chapter Contents:

Vision & Mission Values HR Vision Statement Corporate Culture Review of Policies Exception



Section A: VISION, MISSION AND VALUES

VISION & MISSION

Vision

Excellence in all that we do.

Mission

Achieve leadership in providing financial services in chosen markets through innovation.

VALUES

Integrity

We are recognised by our reliability, credibility and character.

We believe in ethical, honourable, time-proven principles of uprightness.

We stand for and abide by honesty, truth and transparency.

Our Integrity: Our Identity.

Respect

We hold our customers, investors and regulators in high esteem.

We uphold our customers’ rights to demand efficient service.

We appreciate and respect our profession and, above all, our Bank.

Our Respect: Our Duty.

Teamwork

We function as a team. Within functions, we cooperate.

Between functions, we collaborate. Together, we aim for excellence and leadership in our chosen markets.

Our Team: Our Asset.


HR Policy Manual....................................................................................................................................................... Page 10 of 145

Professionalism

We are proficient and efficient in all that we do.

We provide banking services knowledgeably and skillfully.

We uphold regulatory obligations.

Our Professionalism: Our Competence.

Passion

We bring zeal and enthusiasm for banking to work.

We are excited to provide customers with the best or the best-suited.

We go the extra mile in legitimate, acceptable ways.

Our Passion: Our Worth.

Responsiveness

We are receptive to the need for change and improvement.

We are proactive and anticipate our customers’ needs and wants.

We act quickly to modify, adjust or prepare for new realities.

Our Responsiveness: Our Distinguisher.

Innovation

We pioneer novel and more efficient ways to deliver solutions.

We are dedicated to a culture of improvement and modernisation.

We stand for originality, in thought, in action and in belief.

Our Innovation: Our Strength.

Compassion

Our concern for our customers, our colleagues, our communities, and our country sets us apart. To each other, we are a family.

For each other, we are a meaningful source of shared humanity.

Our Compassion: Our Gift.

HR VISION STATEMENT

“We set the standard for HR in the local Banking Services by demonstrating top performance through unleashing human potential”



CORPORATE CULTURE

The aim of the HR policies is to recruit and develop employees as responsible and ethical bankers, who contribute towards the growth and development of Faysal Bank and the economy of Pakistan.

HR Function shall from time to time issue guidelines, handbooks and instructions that lay down the desirable behaviour norms for employees and the corporate culture that defines Faysal Bank. The Bank’s CSR policy duly approved by the Board of Directors already lays down the Bank’s commitment to being a socially responsible corporate citizen. The HR policies are an extension of the same.

REVIEW OF POLICIES

HR policies shall be reviewed periodically and changes proposed if so required. All changes in the policies shall be duly recorded and communicated to staff as and when required. All procedures / details pertaining to policies shall be documented and approved by Head HR and P&CEO.

EXCEPTIONS

ANY / ALL exception(s) to the HR policy is/are subject to P&CEO’s approval.



RECRUITMENT AND RESOURCINGSECTION ‘B’

Chapter Contents:

Philosophy Recruitment Resourcing Conditions of

employment Job rotation Transfers Management trainee

program Trainee officer

program Trainee cash officer

program Internship program



Section B: RECRUITMENT AND RESOURCING

PHILOSOPHY

We are an equal opportunity employer.

FBL provides equal employment opportunities to all applicants on the basis of qualification, demonstrated ability, experience and learning.

FBL’s recruitment philosophy is to attract, train and retain people who can build a strong, mutually beneficial and lasting relationship with the Bank. We strive for talent that desires to make a difference and willing to learn and helps create shareholder value.

Our commitment is to be fair and transparent with applicants at all times. FBL’s recruitment process aims to establish a match between individual's aspirations and expectations and that of the organization.

Diversity is seen as a strategic and sustainable long-term objective. Compliance to equal opportunity, non-discrimination and non-harassment are integral requirements.

We work on the principles of:

Respect for every individual;

Draw strength from equal opportunity and diversity, at the same time supporting personal growth and development ;

Value and benefit from the uniqueness of each individual.



RECRUITMENT

Recruitment must be done in conjunction with the relevant HR Business Partner, for recruitment of SVP grades and above, with Functional Head and Head HR.

The line manager is responsible for drafting the job/position description, which shall be approved by the Functional Head and Head HR. The job/position description, initiated by the department supervisor, will define the job in detail, associated tasks and profile of the incumbent necessary to assume the position. The defined tasks and stated qualifications will be the criteria for screening applications.

Recruitment will only be completed once all the relevant formalities listed below are complete. These documents have to be seen in ‘original’ form for necessary verification.

Detailed C.V. (signed)

Acceptance of Appointment Letter in original

Three references (NOT related) with complete address & Tel. No.

Eight Coloured Photographs (Passport Size)

Copy of Computerized N.I.C.

Copies of Educational Certificates (copies to be verified from original)

Copies of Experience Certificates (copies to be verified from original)

Release Letter from the Previous Employer

Medical Fitness Report

Details of Dependents / Contact in Emergency

Declaration of Secrecy / Conflict of Interest / Undertaking

PF Nominee

Health Questionnaire Form

Code of Conduct

Pay Slip / Salary Certificate of last employment



RESOURCING

HR will utilize appropriate channels to solicit quality resources ranging from (but not limited to) referrals, job advertisement, recruitment portals references, head hunters etc.

Hiring in Permanent Cadre

Hiring in permanent cadre and on Bank contract shall be classified into the following:

External Hiring

This refers to hiring from outside the Bank and is carried out at all levels; senior- and middle -management level, and at entry level.

Entry Level hiring includes bulk hiring and hiring of Management Trainees (MTs), Trainee Officers, and Trainee Cash Officers.

Internal Hiring (Internal Job Posting)

HR may invite applications from existing employees by posting the job on the network. The existing employees will have to compete on merit with the external applicants.

Temporary Hiring

The Bank may acquire the services of an expert on a contractual basis.

Outsourcing (Third Party Contract)

Outsourcing (hiring on third party contract) will be done for all the functions/departments that do not need employees on permanent basis.

HR will sign a Memorandum of Understanding (MOU) with vendor(s).

Re-hiring

Employees who had resigned on their own may be considered for hiring on merit and as per rules. The past employment records of such employees with FBL would be considered before making a hiring decision. However, if a person re-joins the Bank within one year of resignation, the same will be allowed but on the same remuneration and grade existing at the time of resignation.

Bank Contract Employment

This category will be used to hire seasoned professionals having specialized skill sets and / or have crossed retirement age.

A retired employee can be rehired on Bank contract for such period as deemed necessary and on such terms as may be agreed upon, provided he/she is found fit for such re-employment.The previous years of service would not count for any facility or terminal benefits.



Change of Status

If a Bank contract employee is being recommended for full-time employment, it would be based on the following:

• Recommendations to be made at the time of performance appraisal cycle;

• Recruitment process to be followed.



CONDITIONS OF EMPLOYMENT

The minimum educational qualification for officer/executive is Graduation or equivalent qualification from a reputable national or foreign university or professional institution.

A candidate shall not be less than 18 years of age.

Head HR may waive the above requirement of minimum qualification in exceptional caseswith the concurrence of P&CEO.

Aptitude/written Test

All fresh entry level candidates with no experience will have to give an aptitude / written test designed and conducted by HR.

Minimum Interviewing Guidelines

All candidates before selection shall have to go-through the interview process. For VPs and below, interviews shall be conducted with line manager and HR representative. SVPs and above, interviews shall be conducted by line manager, Sr. HR Business Partner, Functional / HR Head; P&CEO.

It is mandatory to record all interview assessments in the prescribed Interview Evaluation Form.

The grade of the interviewer should be at least one step higher than the grade for which the person is being interviewed.

Reference Checks

All candidates will furnish at least two references. These references will be verified once the candidate is on board.

Unfavorable recommendations from the references shall lead to termination of the employment.

Medical Check-up

All candidates will have to undergo a medical examination before joining (exceptions may be made by the Head HR to hire any person prior to medical clearance).

Any candidate failing the medical test will not be eligible for employment.

Hiring of Relatives

Hiring of employee’s close relatives shall not be permissible. Close relatives include parents, brothers, sisters, spouse, sons, daughters, parents-in-law, brothers/sisters-in-law and sons/daughters-in-law.

Relatives other than the above would be excluded from this definition.

Sr. HR Business Partner and line managers must ensure that distant relatives (not covered above) if hired, shall not be posted in the same business segment / under no circumstances report to each other.



In case where a relationship is established between two employees after having entered the employment of the Bank, the Bank has the discretion to either transfer one (or both) to non-conflicting assignments and/or offices or request one to resign to comply with the policy.

Appointment

Letter of Appointment: HR Services shall issue appointment letter.

Confidentiality: All persons hired to work at FBL shall be required to sign a declaration of secrecy agreement.

Disclosure of Personal Information: All candidates at the time of joining will be required to fill in the Candidate/Staff Record Form giving details of their respective profiles and attested photographs.

No traveling allowance shall be admissible on joining unless recommended by the Head HRand approved by P&CEO.

Verification of Antecedents

The antecedents of all persons appointed shall be verified to ensure good reputation and integrity.

HR Services shall verify in writing the antecedents of prospective / appointed employees from their former employers and nominated references, and academic / professional achievements from the degree awarding universities / educational institutes.

Employee appointed shall provide a clearance from their previous employer within 3 weeks of joining.

Traveling Expenses for Interviews

No traveling or out-of-pocket expenses shall be admissible for interviews at entry levels.

Traveling expenses shall only be paid on case-to-case basis to candidates for senior-and-middle management positions.

Relocation Expenses on Joining

Relocation Allowance: All new incumbents who shall be relocated or transferred from one city to another shall be given a relocation allowance on a case-to-case basis as per Bank’s relocation policy.

Change in Personal Status

All employees are required to notify the HR Services immediately through HRMS, for any change(s) in personal status.



Orientation Program

All new recruits shall be taken through an orientation program, facilitated by HR Function. The idea of an orientation program is to provide an overview of Bank’s policies, products, organizational set-up and strategy.

The respective line managers shall ensure that all the new entrants must attend the Orientation Program.



JOB ROTATION

Faysal Bank encourages rotation of job / change of assignments in the interest of good business practice, however with justifications. By changing assignments, the Bank provides employees the opportunity to grow and learn and at the same time ensures proper checks and balances on each position.

In this context Functional / Departmental Heads are advised to:

Rotate branch staff between branches, at least once every three years subject to justification.

Cash officers / tellers after every two / three years.

Job rotation shall not apply to employees where:

Specific technical skills/expertise or specialists are required;

With low circulation value, that is, on assignments/jobs high in complexity where functional specialists are needed;

Hired for some specific technical skills/expertise or specialists where accountability (PKR) is high.



TRANSFERS

Employees shall be transferred based on the following:

Need of the Bank / vacancy;

Career growth of the individual;

Optimal utilization of skills and knowledge;

Need for experience;

Administrative reasons.

Transfer may require a person moving from / within one geographical location to another OR from / within one function / department to another function / department in the same geographical location.

Transferee shall report to the place of posting within the specified period after receiving the transfer intimation, i.e.

Within the City with immediate effect

Within the region 5 days

From one region to another region (or withinthe region to a place more than 100 km away

7 days

Handing-over / Taking-over (HOTO) procedure

It will be the responsibility of the concerned supervisor to ensure proper handing/taking over.

The HOTO Form must be signed-off by all stake holders.

Monthly fixed fuel allowance in lieu of transfer to another city (without change of residence)

In case where an employee is transferred to another city (inter-city) within the same region (no change of residence) due to non-availability of experienced resource at the new location such as, BMs, OMs, Cash Officers etc. :

The employee shall be eligible for a fixed fuel allowance on a monthly basis, based on number of kilometers travelled (for one way journey, minimum of 20 kilometers).

However, this should be discouraged as far as possible, as it disturbs work life balance and adversely effects out-put.

The allowance shall be recommended by the concerned Functional Head. Head HR with the concurrence of P&CEO shall approve / review / make exceptions to the above allowance.



MANAGEMENT TRAINEE PROGRAMME

Eligibility

Fresh graduates (MBAs / BBAs) from local business schools with minimum 3.0 CGPA. BBAs to be considered from LUMS, IBA and foreign universities.

Individuals with six months work experience may also be considered.

Bachelors from (LUMS & IBA Karachi) and foreign accredited / recognized universities in business discipline.

Ages not exceeding 26 years in case of Local Graduates.

Screening

Those candidates to be considered, who are recommended by universities, however referrals to be considered on fulfilling the eligibility criteria.

Prospective candidates will be taken through proper assessment.

A single or combination (as deemed appropriate) of different exercises / techniques may be used by the HR Team.

Panel Interviews will be conducted by Functional / Departmental Heads with HR Representatives.

Appointment / Confirmation

Management Trainees to be appointed in Officer Grade I cadre.

Training / Rotation & Placement

Comprehensive training in core banking / soft skills areas (as deemed appropriate) e.g. o Orientation / on-boarding 1 week

o Basic Banking Certification Program via IBP 4 weeks

o Rotation 6-8 weeks in diff. functions

o MTs to have Mentors during the training period

The tenure of training would be 9 months; post completion of successful training, MTs would be placed on full-time basis.

The MT is required to serve at least 2 years in the Function / Department where he / she is placed in before being considered for any job rotation / transfer.



TRAINEE OFFICER PROGRAM

Trainee Officer Program shall run on a need basis. Trainees shall go-through a structured training program which will be a combination of on-job and class-room training. Upon successful completion of training, trainees will be confirmed in appropriate slots / grades.

Eligibility

Graduates / Post Graduates from reputable college / university.

Ages not exceeding 26 years.

Screening

Prospective candidates will be taken through written assessment.

Different exercises / techniques may be used by the HR Team for assessment.


Appointment

Trainees to be appointed in Officer Grade III (Graduates) / Officer Grade II (Post Graduates)cadres.

They will be confirmed on their positions upon successful completion of training program.

TRAINEE CASH OFFICER PROGRAM

Trainee Cash Officer Program shall run on a need basis. Trainee Cash Officers shall also go-through a structured training program which will be a combination of on-job / class-room training. Upon successful completion of training, trainees will be confirmed.

Eligibility

Graduates from reputable college / university.

Ages not exceeding 24 years.

Screening

Prospective candidates will be taken through proper assessment.

Different exercises / techniques may be used by the HR Team for assessment.


Appointment Trainees to be appointed in Officer Grade III cadre.

They will be confirmed on their positions upon successful completion of training program.



INTERNSHIP PROGRAM

Regular Internship: Undergraduate, graduate and post graduate students from HEC recognized universities.

Summer internship (project based): Final year students of BBA / MBA from top tier universities with minimum 3.0 CGPA.

Stipend

Regular internship – PKR 750/- per week.

Summer Internship – PKR 850/- per week.

Period & Number of Interns

Regular Internship

4 to 8 weeks (May – September).

Maximum 5 internees per region per month.

Summer Internship

6 to 8 weeks (June to August).

Maximum 15 internees per region.

Upon Completion

Project report to be submitted by the internee to Learning and Development department.

Presentation to be given by the internee to respective Functional Head / Mentor / HR Business Partner / Learning & Development.

Evaluation form to be filled-out by the respective line manager / Departmental Head.

Internship process may be revised from time to time based on the market practice.



CONDITIONS OF EMPLOYMENT

SECTION ‘C’

Chapter Contents:

Probation Probationary period Notice period Resignation Disciplinary action Fraud & forgeries



Section C: CONDITIONS OF EMPLOYMENT

PROBATION

The Probationary period is to enable the employer to gauge the suitability of the potential employee for the job hired, the ability of the employee to fit into the Faysal Bank culture and the ability for the employee to grow within the Bank.

PROBATIONARY PERIOD

Employees shall be placed on probation as under:

EVP & above – no probationary period (in case of minimum of 15 years of relevant work experience)

EVP – 3 months (with less than 15 years of relevant work experience)

VP to SVP – 3 months

AVP to RVP – 6 months

OG I & below – 3 months

Incase of Bank Contract (BC) employee being offered regular employment, the probationary period will be of three (3) months.

Upon expiry of probationary period, confirmations will be based on recommendations received from line manager.

On expiry, the probationary period can be extended no more than three months or services may be terminated on conclusion of Probationary Period.

NOTICE PERIOD

An employee shall not resign from the Bank’s employment without giving one (1) months notice of his / her intention to do so failing which he/she shall be liable to pay the Bank a sum equal to his / her gross salary for un-served period of notice in lieu thereof. However the Bank at its sole discretion may waive / reduce the notice period and relieve such employee with immediate effect.

During probation, either party can terminate the employment by giving 24 hours notice, subject to completion of exit formalities.

Termination of employee services will require the Bank to give notice as defined in Exit and Disciplinary Policy.

Unless termination is a result of gross misconduct, fraud or negligence, in which case termination by way of dismissal will be immediate and without compensation.



Prior to release of the outgoing employee, a formalized handing over of the job assignment must be made via the Handing/Taking Over process.

An outgoing employee shall therefore not be considered released unless a release letter is issued by HR Function.

Outgoing employees must, prior to being granted release comprehensively hand over their responsibilities and assignments to a replacement so designated by the Branch or Department Head (as per procedure prescribed in IOM jointly issued by HR Function and Country Operations – COP-IOM-261/05 dated 4/8/2005). Where required, Internal Audit or Country Operations may also undertake a review of the assignments being handled by the outgoing employee prior to signing the taking over formalities.



RESIGNATION

An employee may resign from the services of the Bank, at any time, by giving one months notice in writing or make payment of the sum equivalent to gross pay in lieu of the notice period.

The Bank may at its sole discretion, waive or reduce the amount due by employee in lieu of notice period.

For employees in grades OG III to EVP, Head HR may, at his/her sole discretion, waive or reduce the amount due to the employee in lieu of notice period, P&CEO will waive this period for his direct reports i.e. EVPs / SEVPs.

All benefits with regards to permissible leaves, bonus or LFA payable and retirement benefits etc. of an employee shall cease as soon as the resignation is tendered and accepted, regardless of the notice period being served.

Exit Interview

In all cases of resignation, HR will conduct a formal exit interview with the departing staff. The objective is to get a candid assessment of how the Bank is perceived and what can be done for improvement. The exit interview notes will be filed with HR for further action, if needed.

Superannuation and Retirement

Every employee shall retire from service on completing the sixtieth (60th) year of his/her age.

Early Retirement

An employee may opt to retire after completing 25 years of continuous employment in the Bank. Deferred payments (Provident Fund and Gratuity) will be calculated on the basis of actual period of service.

Employees will become eligible for gratuity at the rate of one month’s basic salary for each completed year of service with the maximum of 25 months. The entitlement to gratuity will however commence after completion of 5 years of continuous service.



DISCIPLINARY ACTION

In the event of an employee committing breach of the disciplinary rules under the Employment Rules of the Bank, or contravening instructions/ orders issued to him/her in connection with the official work or displaying negligence, inefficiency, indolence or undertaking anything detrimental to the interest of the Bank or being guilty of any other act of misconduct or insubordination, the Head HR in his/her sole discretion and without limitation, may impose on him/her one or more of the following penalties:

Postponement or stoppage of increment or promotion; Recovery from Salary whole or part of any pecuniary loss caused to the Bank by the

employee; Demotion to a lower stage of Salary in his / her Grade or to a lower Grade; Compulsory retirement from service; Termination; Dismissal from service, without notice period, which will involve permanent disqualification

for future Employment in the Bank.

Suspension

The Head HR may, if he/she deems fit, suspend in writing, an employee pending inquiry against him/her. Post such approval of the Head HR, the written order of communication may be sent out to the employee by an HR Executive, to whom such authority is delegated to by Head HR. During suspension:

The employee shall be entitled to full salary

He / she shall not attend office until settlement of the case.

Provided that for such employees who are governed under the Industrial & Commercial Employment (Standing Orders) Ordinance 1968 the order of the suspension shall be given in writing and may take effect immediately on delivery to the employee.

Further provided that for such employees who are governed under the Industrial & Commercial Employment (Standing Orders) Ordinance 1968 the total period of such suspension shall not exceed 4 weeks.

Procedure for Disciplinary Action

When, as a result of preliminary investigation, an employee is reported to have committed any irregularity, Head HR (also refer “Fraud and Forgeries for further details):

Shall cause a charge sheet to be issued to him/her to submit reply within three days. The charge sheet may be issued by an HR Executive duly authorized by Head HR to issue the same;

If the reply to the charge sheet is not satisfactory, shall appoint an Inquiry Officer/Committee hereafter called “Inquiring Authority; and the Inquiring Authority so constituted shall;



Require the charged employee within a reasonable time, not less than 3 days and not more than 14 days from the date charge-sheet has been communicated by hand or by Registered Post at the last known address to the charged employee, to submit a written defense and to state at the same time whether he/she wishes to be heard in person.

Shall inquire into the charges and may examine such oral or documentary evidence in support of the charges or in defense of the charged employee as may be considered necessary and the charged employee shall be entitled to cross-examine the witnesses against him/her and in favour of him/her.

Where the inquiring authority is satisfied that the charged employee is hampering or attempting to hamper the progress of the inquiry, it shall administer a warning and if thereafter it is satisfied that the charged employee is acting in disregard to the warning, it shall record a finding to that effect and proceed to complete the inquiry in such a manner as it deems proper under the circumstances.

The Inquiring Authority shall submit to Head HR a report together with the necessary documentation for consideration. Head HR may award, if within his/her jurisdiction, such punishment as he/she deems proper, provided that in consideration of the facts of the case, Head HR may dispense with the requirements of above cited rules and take an explanation of the employee to the charges against him/her and award punishment forthwith.

Review / Appeal

An employee shall have the right of appeal or making an application for review to the P&CEO of any of the penalties imposed upon him/her within 30 days of the date of orders conveying such penalties. The appeal or application for review shall comply with following requirements:

o It shall contain all material statements and grounds relied upon and shall be complete in itself, and

o It shall specify the relief desired.

If the employee so desires, he / she shall have the right to be heard in person by the Authority Competent to consider the appeal or application for review.

The Appeal Authority shall have final powers to accept or reject an appeal.

Termination of Employment

The services of an employee may be terminated by Head HR from employment, in any grade by giving one (1) month notice or a sum equal to his / her gross salary for one (1) month in lieu thereof. Such termination is applicable either as ‘termination simplicitor’ or may be on assignment of reasons such as position becoming redundant or nature of job changing due to business considerations.



In case termination of employment is a result of misconduct including but not restricted to fraud or negligence, termination will be immediate and without compensation and may be made under head of dismissal.

At the end of the notice period, the employee will be entitled to the deferred payments applicable to him/her. Such payments, however, will not be effected if the employee is terminated for misconduct or any other reasons cited above.

An employee who absents himself/herself from duty without authority to do so or fails to report for duty within the period specified in the written notification issued to him/her shall render himself/herself liable to disciplinary action including dismissal of his/her services. Such notification shall require the employee to report for duty immediately on or before the date of dispatch, by registered post, of the letter at the employee’s last known address on Bank’s records, or to produce a genuine and verifiable Medical Certificate justifying the total period of absence.

The Bank reserves the right to have any employee checked by a Medical Board specially constituted for such purpose.

The Bank shall determine what act or commission constitutes misconduct, breach of trust or negligence of duty, according to the applicable legislation. Following are some of the reasons for which the services of an employee can be terminated without notice or compensation:

o Habitual absence without leave or Unauthorized absence from duty for more than ten days;

o Persistent failure to observe timekeeping rules;

o Failure to submit medical certificates to cover periods of absence due to illness;

o Failure to meet the required standards of work;

o Failure to comply with reasonable or lawful requests from superiors;

o Willful insubordination or disobedience;

o Unauthorized use of Bank property;

o Leaving confidential information unsecured;

o Use of inappropriate language;

o Intoxication, and/or consumption of alcohol or drugs on Bank premises;

o Failure to disclose a personal interest conflicting with any Bank transaction in which you are engaged;

o Breach of confidence;

o Disregard of duties;

o Sexual or racial harassment;

o Theft, fraud, misappropriation, dishonesty with business or property of the Bank or any other organization / any person inside or outside the Bank or inappropriate removal or possession of property;

o Falsification of employment documents / data to obtain employment;



o Tampering the office records;

o Negligence or improper conduct leading to damage of Bank-owned or customer-owned property or damage to the reputation of the Bank;

o Conviction for a criminal offence within or outside the office;

o Violation of safety or health rules;

o Illegal strike or inciting others to strike work;

o go slow;

o Misuse of Official Stamps / Letterheads / Telephones / Computers & other items;

o Willful damage to or loss of Bank’s goods or property;

o Taking or giving bribes or any illegal gratifications;

o Habitual breach of Rules or any Law applicable to the Bank;

o Riotous or disorderly behaviour during working hours at the establishment of the Bank orany act subversive of discipline;

o Making commitments on behalf of the Bank beyond the scope of the delegated authority or making commitments known to be detrimental to the interests of the Bank;

o Engaging directly or indirectly, without the Bank’s permission in any other business or paid occupation, whilst in the services of the Bank;

o Use of the political or other outside pressure/ influence ,with intent to induce the authorities / superior officers in respect of any matter relating to the appointment, promotion ,transfer, punishment, ,retirement or for any other terms and conditions of Employment;

o Refusing to receive any official memorandum or communications addressed to the employee by the Bank;

o Frequent disregard or disobedience of rules or general orders;

o Frequently making false and misleading statements;

o Inefficient, dilatory, careless or wasteful working;

o Insider Trading (Illegal transactions made basis of privileged information, particularly trading in stock & shares, whose value is likely to be affected by the release of news, of which only a few people are aware of);

o Parallel Banking (Any activity by an individual that he carries out in his personal capacity, which he actually should have performed on behalf of the Bank);

o Money laundering;

o Regulatory violations leading penalties by SBP/other concerned authority;

o Misbehaviour / Discourteous behaviour with the Customer, which may adversely effect the image of the Bank;

o Any act(s) subversive of discipline.

An employee shall not undertake the following activities:

Engage in any other activity whether remunerated or non-remunerated of any nature, whether part time, temporary or other, without the prior written consent of the Head HR.Failure to seek approval of the Head HR will be considered as unfair competition and shall be grounds for immediate termination under disciplinary action.



Engage in any teaching, coaching or media assignment, whether remunerative or non-remunerative, without the prior written permission of the Head HR.

Infringement of Rules

An employee guilty of infringing any of the provisions of the Employment Rules or who commits any acts of misconduct will render himself / herself liable to disciplinary action including his / her dismissal from service.

Security Measures to be undertaken on an Employee Exit from the Bank

In the event of exit of an employee from the service of the Bank, whether as a result of resignation or termination, following measures (in addition to any others that the reporting manager deems necessary) need to be taken to ensure security for the Bank:

Recovering identity cards, keys and devices used to operate access control systems.

Denying access to sensitive areas such as dealing rooms and communications and data centres.

Deleting the names of exiting individuals from lists of authorized signatures, where required.

Changing the Personal Identification Number codes on all access control systems known to the exiting employee.

Barring access to IT systems by canceling user identities and passwords.

Canceling access to office management facilities such as e-mail, voice mail, Note Books and any related remote terminals.

Recovering papers, notebook computers and associated media and information that the person may have been working on at home.

Recovering Bank provided motor vehicles and the related papers/document.

In case of dismissal / termination or resignation on account of gross misconduct i.e., fraud, forgery, embezzlement, inform SBP in compliance to BPD Circular No. 17 dated June 11, 2003.

The extent to which measures to limit access should be applied will depend on the reason for person’s departure and whether he/she will be required to serve a notice period. The following details provide guidance on measures to be applied in different situations:

In the event of retirement, normal access privileges of employees who retire on completing their contracts/ service period should be cancelled immediately.

Employees who resign or who are made redundant because their jobs have fallen away may have a contractual obligation to work on a notice period. Normally, they should be permitted to do so before access is withdrawn. However, if this creates a potential business, security, reputation or other risk, it may be necessary to ask the person concerned to leave the Bank premises immediately.



When staff is dismissed for misconduct, access privileges should be withdrawal immediately.

Any other measures that may be required in such cases should be decided by the line management in consultation with Head HR / Legal Advisor as appropriate.



FRAUD & FORGERIES

Introduction

Fraud is a legal concept that requires a conscious knowledge of the falsity with deliberate intent to deceive. Fraud includes intentional deception, misappropriation of assets and the manipulation of financial data to benefit the perpetrator. Constructive fraud is a deceit that involves a false representation of a material fact without reasonable ground for belief that is relied on by another person and results in his damage or loss. Major deterrents to fraudulent activities are fear of detection and punishment.

Fraud in context of the Bank refers to an intentional act by one or more individuals among the management, employees or third parties which results in misappropriation of funds, accounts maintained by the Bank etc. and may include following:

Manipulation, tempering, falsification or alteration of records or documents.

Misappropriation and theft of assets, business or property of the Bank or any other organization.

Suppression or omission of the effects of transactions from record or documents.

Recording of transactions without substance.

Misapplication of accounting policies.

Forgery in its broadest interpretation is, ‘making or altering any document with the intention of prejudicing another person’. A statutory definition of forgery includes false making, counterfeiting, alteration, erasure, obliteration of genuine instrument, in whole or in part, making or counterfeiting of the signature of the party or witness, in placing or connecting together with intent to defraud different parts of several genuine instruments. Thus placing a false signature on a cheque/ document/ instrument, raising the amount, or changing payees name or the number of cheque/ document/ instrument with the intention to defraud constitutes forgery.

At the very outset it must be accepted that it is not possible to entirely circumscribe and eliminate the risk of fraud and forgeries. New technology, changes in personnel, economic environment and numerous other factors may have their impact on controls and the manner in which they are operated. However, the existence of a strong and interactive control environment, clear understanding of the responsibilities and a positively motivating cooperative work-environment reduces the risk of occurrence of fraud and forgeries to an acceptable low level.

Frauds & forgeries result in financial losses and can also prove potential threat to the image and reputation of the Bank. Such instances also entail waste of time and energy of seniormanagement staff in the matter of investigation and adoption of necessary course of action as admissible under the law against the person(s) involved.

Procedure

In the event that substantial evidence exists that a fraud or forgery has been committed by an employee the Head HR, in his/her sole discretion and without limitation may impose on him /her one or more of the following penalties:



Recovery from pay or terminal benefits, the whole or part of any pecuniary loss caused to the Bank by the employee.

FIR may be lodged with law enforcing agency for fraud, forgery or criminal behaviour or the matter maybe taken to other appropriate authorities.

Dismissal from service without notice period, which will involve permanent disqualification for future employment in the Bank.

Disciplinary action commences on the basis of a complaint of misconduct committed by an employee. What is misconduct /improper conduct will depend on the circumstances of each case. However the following amongst others will fall in the category of misconduct:

Theft, fraud, forgery or dishonesty (as above described);

Taking or giving bribes or any illegal gratification;

Willfully causing financial or reputational loss to the Bank for personal benefit;

Habitual absence without leave or Unauthorized absence from duty for more than ten days;

Persistent failure to observe timekeeping rules;

Failure to submit medical certificates to cover periods of absence due to illness;

Failure to meet the required standards of work;

Failure to comply with reasonable or lawful requests from superiors;

Willful insubordination or disobedience;

Unauthorized use of Bank property;

Leaving confidential information unsecured;

Use of inappropriate language;

Intoxication, and/or consumption of alcohol or drugs on Bank premises;

Failure to disclose a personal interest conflicting with any Bank transaction in which you are engaged;

Breach of confidence;

Disregard of duties;

Sexual or racial harassment;

Falsification of employment documents / data to obtain employment;

Tampering the office records;

Negligence or improper conduct leading to damage of Bank-owned or customer-owned property or damage to the reputation of the Bank;

Conviction for a criminal offence within or outside the office;

Violation of safety or health rules;

Illegal strike or inciting others to strike work;

Go slow;

Misuse of Official Stamps / Letterheads / Telephones / Computers & other items;

Willful damage to or loss of Bank’s goods or property;



Habitual breach of Rules or any Law applicable to the Bank;

Riotous or disorderly behaviour during working hours at the establishment of the Bank or any act subversive of discipline;

Making commitments on behalf of the Bank beyond the scope of the delegated authority or making commitments known to be detrimental to the interests of the Bank;

Engaging directly or indirectly, without the Bank’s permission in any other business or paid occupation, whilst in the services of the Bank;

Use of the political or other outside pressure/ influence ,with intent to induce the authorities / superior officers in respect of any matter relating to the appointment, promotion ,transfer, punishment, retirement or for any other terms and conditions of Employment;

Refusing to receive any official memorandum or communications addressed to the employee by the Bank;

Frequent disregard or disobedience of rules or general orders;

Frequently making false and misleading statements;

Inefficient, dilatory, careless or wasteful working;

Insider Trading (Illegal transactions made basis of privileged information, particularly trading in stock & shares, whose value is likely to be affected by the release of news, of which only a few people are aware of);

Parallel Banking (Any activity by an individual that he carries out in his personal capacity, which he actually should have performed on behalf of the Bank);

Money laundering;

Regulatory violations leading penalties by SBP/other concerned authority;

Misbehaviour / Discourteous behaviour with the Customer, which may adversely effect the image of the Bank;

Any act(s) subversive of discipline.

On receipt of complaint as mentioned above a charge sheet shall be issued to the concerned employee, which will contain:

Details misconduct committed;

The employee will be required to submit his/her explanation in writing within 3 days of the receipt of the charge sheet;

If the employee refuses to accept the charge sheet or no reply is received within the stipulated time then the next step will be hold an enquiry;

If the explanation received is not satisfactory then a response would be sent to the employee to appear before an enquiry officer/enquiry committee for a departmental enquiry;

The Head HR will direct / appoint the enquiry officer and management representative to initiate the enquiry.

At the appointed date and time, the enquiry will be conducted and the following would be expected to be present,

The enquiry officer. Complainant or the Management Representative.



The concerned employee accused of misconduct.

The employee should be cautioned that if he /she fail to be present at the departmental enquiry, it shall be held ex-parte for which employee alone will be responsible.

The timeline for finalizing the enquiry and submission of report to HR Function by the enquiry committee will be from two to four weeks.

At the conclusion of the enquiry proceedings, the enquiry officer would give his report in writing to the HR Function, briefly giving the reasons for his/her agreeing or disagreeing with the accused employee’s contentions.

Suspension from services would only take place if letter to hold an enquiry is issued. On the basis of the enquiry officer’s report, if the employee is found guilty, he may be dismissed from employment without payment of any compensation in lieu of notice.

However, if the enquiry officer finds him/her not guilty, then he/she shall be reinstated immediately from the date of suspension.

After the decision as to the punishment to be awarded to the accused has been made, it is to be communicated to the employee concerned in writing as soon as possible. The letter communicating punishment, would make a reference to the charge sheet, his/her explanation if any, the enquiry held wherein he/she was present or not as the case may be and the findings of the Enquiry Officer.

The punishment order must be delivered to the employee against acknowledgment. In case he/she is not personally available, the same may be sent to him/her at last known residential address by registered post.

The dismissal order shall be issued by the Head HR only, in consultation with the Head of Legal/Legal Retainer, and after obtaining prior approval from P & CEO.



WORKING ENVIRONMENT

SECTION ‘D’

Chapter Contents:

No smoking policy Dress code Late sittings Public speaking in

conferences, seminars & workshops

Authority to respond to media

Business cards Flexible working

hours Sports club



Section D: WORKING ENVIRONMENT

NO SMOKING POLICY

The Bank is committed to provide a smoke free work environment where every smoker / nonsmoker can work in good health. Accordingly, the employees are not allowed to smoke at the workplace except at the designated areas.

This policy applies to all premises of our Bank during and after official working hours.



DRESS CODE

The Bank maintains a professional working environment; all employees should follow the dress code that is appropriate for the office and customer interaction as appended below:

Formal

Monday – Friday

Men: Formal Attire i.e. Suits or formal Trouser/Shirt and Tie, polished shoes.

Women: Culturally appropriate/decent attire e.g. Shalwar Kameez/Kurta/Suit, Shoes, Formal Flat Heels.

Smart Casual

Working Saturdays

Staff with no public dealing may come in on Saturdays dressed in Smart Casual attire.

Men: Formal Shirt/ polo shirts, Trousers and polished shoes.

Women: Culturally appropriate clothing maintaining professional protocol.

Please note:

• Smart Casual attire does NOT include wearing of jeans, shorts, collar-less T-shirts.

• Wearing of shalwar kameez (men), joggers, slippers are also not allowed.

• Wearing of shalwar kameez (men) may be considered in regions due to security concerns.

This rule applies even if an employee is on holiday and comes into the Bank to conduct Bank related business.



LATE SITTINGS

To encourage work life balance, all employees are discouraged to do late sittings after office hours, however, due to extenuating circumstances, an employee may be required to sit late beyond office timings to finish his / her assignment or pending work.

Incase where an employee sits beyond 8.00 p.m. during work days (5.00 p.m. on Saturdays), he/she will have to obtain approvals from their respective supervisors.

All employees leaving Bank premises after 8.00 p.m. during work days (5.00 p.m. on Saturdays) will sign a register (late sitting register) maintained by the security at exit points.

Incase where an employee needs to work on Sunday or on gazetted public holiday, he/she will have to obtain prior written approval from his/her respective Area Manager / Departmental Head / Functional Head.



PUBLIC SPEAKING IN CONFERENCES, SEMINARS & WORKSHOPS

The Bank Executives and Officers may be invited to address conferences, seminars and workshops by Institute of Bankers in Pakistan and other professional/educational bodies. The Bank encourages acceptance of such invitations provided his/her work in the Bank is not negatively affected.

Such assignments should be accepted after obtaining prior written approval and vetting of material by HR. However, no live examples / information may be quoted/shared during these interactions pertaining to the Bank / work in whatsoever manner. Complete confidentiality of the Bank’s client information is to be maintained.

The P&CEO may delegate / designate any staff on Bank’s behalf to represent the Bank as public speaker in conferences / seminars & workshops.



AUTHORITY TO RESPOND TO MEDIA

The Bank has an established Corporate Communications Department that will attend to all such needs of communication on behalf of the organization.

Under no circumstances, any person, except the P&CEO or Corporate Communication Department is authorized to liaise with or respond to media request for information, verbal or written; clarification of a case or any other matter which may be used by the electronic or print media.

Such an act will constitute misconduct & may draw disciplinary action under Bank’s rules.

Should there be an occasion where an individual invitation is extended to appear before the media, prior approval from Head of HR with the concurrence of P&CEO will be required.

The P&CEO may delegate / designate any staff on Bank’s behalf to represent the Bank for media response.



BUSINESS CARDS

The Bank shall arrange business card(s) for members of management and other employees who have interaction with customers/suppliers and outside agencies. The respective Functional Heads will approve individual requests as per the established guidelines.



FLEXIBLE WORKING HOURS

The Bank management recognizes the need to introduce flexible working hours in specified business areas e.g. IT/Treasury etc. However, the employees are required to complete the requisite number of hours.

It is mandatory for staff in these areas to be in office during 10.00 a.m. to 12.30 p.m. / 3.00 p.m. to 5.00 p.m.

In order to avail the facility, employee should take necessary approval from the relevant Functional / Departmental Head. Relevant line manager should send a list of all those employees availing flexible working hours to Head, HR Services for records.

The Management has a right to change the working hours without any notice or without assigning any reason.

Note: In areas where shifts are run, rosters are required to be maintained and approvals fromrelevant Functional / Departmental Heads must be solicited and forwarded to HR for record.



SPORTS CLUB

To encourage and promote healthy balance between work and life, a Sports Club is available. Sports activities to play a vital / healthy role in an individual’s life leading to improve productivity.

To provide financial support in sports activities, however, staff shall contribute nominal amounts to ensure participative management of sports events.

To create healthy environment amongst the staff members which shall be a source of motivation for the staff.

Deductions

Contributions to be made by all full-time employees on pan Pakistan basis as per the following schedule:

Grade Contributions per month to be deducted at source

OG III – OG II PKR 10/- per monthOG I PKR 20/- per monthAVP II – AVP I PKR 30/- per monthRVPs PKR 50/- per monthVPs and above PKR 100/- per month

The accumulated balance of the funds shall be utilized for promotion of sports activities for the staff members under the supervision of Sports Management Committee (constitution of the Management Committee along with powers of payments / withdrawal from the sports club account to be approved by Head HR with the concurrence of P&CEO).

The funds shall mainly be utilized for the purchase of sports goods and initiating / participating in various tournaments and picnic, for staff including arrangement of food on such occasions etc.

Any payment / withdrawal from the sports club account shall be made by the Sports Management Committee.



REMUNERATION AND ORGANIZATIONSECTION ‘E’

Chapter Contents:

Cash allowances Hajj



Section E: REMUNERATION & ORGANIZATION

CASH ALLOWANCES

Agri Credit Officers

Fuel allowance of 90 liters would be paid to Agri Credit Officers along with the payroll on a monthly basis based on the prevailing fuel rate.

Branch Managers

Fuel allowance of 100 liters would be paid to Branch Managers below RVP grades along with the payroll on a monthly basis based on the prevailing fuel rate.

Personal Banking Officers

Personal banking officers would be paid an allowance of PKR 3,600/= per month in lieu of fuel expenses along with the payroll on a monthly basis.

Utilities Allowance

All permanent employees, in grades of RVP and above shall be paid a Utility Allowance equal to 10% (Ten percent) of basic salary each month.

Evening Banking Allowance

Employees undertaking evening banking hours in designated branches from 5.00 p.m. to 8.30 p.m. shall be eligible to receive Evening Banking Allowance based on the recommendations of Functional Head which will be approved by Head HR with the concurrence of P&CEO.

The above allowances / designations may be reviewed / revised from time to time on recommendations of Functional Heads with the approval of Head HR with the concurrence of P&CEO.



HAJJ

The Bank will annually award Ten (10) Hajj packages to its full-time confirmed employees. This facility is offered once during service with FBL regardless of re-hire.

The method of allocating the Hajj packages shall be as follows:

o Eight (8) through draw of names in supervision of at least three senior members of the management team including representative of HR Function.

o Two (2) through draw of names of employees based on superior performance of the nominated employee.

All full-time confirmed employees of Faysal Bank shall be eligible for inclusion in the draw for Eight (8) Hajj draws, if they:

o Have completed three (3) years as full-time employees with the Bank.

o Have not availed the Hajj or Umra facility through Bank in previous years.

o Are Muslims.

The amount attributable to each Hajj package would be cost of Hajj as per Government approved rates plus 20 percent or as agreed by the Management each year.

Beneficiaries of the Hajj draw shall avail the facility in the subsequent Hajj season.

Employees shall avail Hajj leave, balance days, if needed, for observance of this religious rite, shall be made up by availing Privilege Leave.

Timing of the Draw

The draw for Hajj shall be scheduled well in advance of the Hajj application closing dates announced by the Government of Pakistan to enable beneficiaries to undertake all necessary documentation in time to avail of the subsequent Hajj season.



PERFORMANCE MANAGEMENT AND REWARDSSECTION ‘F’

Chapter Contents:

Job analysis, specifications and grades

Pay-scales and salaries Performance

management Annual performance

appraisal Spot rewards CEO’s club Education assistance

program Reward for passing IBP

diploma Performance bonus Tax liability /

deductions from salary



Section F: PERFORMANCE MANAGEMENT & REWARDS

Strategy

The reward strategy is pay for performance. Merit increases based on performance may be awarded during performance review cycle. The merit increase recommendation must be approved by the Functional Head, Head HR and submitted to P&CEO for final review and approval.

There may be instances, where employees with below average performance and conduct, may not receive an increase. Salaries are reviewed once a year, or at such time that the Bankdeems fit, and normally become effective on April 01. The Bank reserves the right to alter review dates in the interest of an orderly and equitable administration of the compensation program. Staff joining during the course of the year may be liable to pro-rata compensation.



JOB ANALYSIS, SPECIFICATIONS AND GRADES

Purpose

To establish a standard job description format for documenting positions and to ensure effective and efficient organizational structure of the Bank.

To maintain a transparent and equitable system of determining the relative value of a general staff position.

In order to categorize all positions in to Job Grades and to determine whether substantial / noteworthy changes to an existing position will result in a change to the grading level of that particular position.

Job Description

Every job will have a title and its next level of management reporting.

Every job will have specific objectives mentioned on the job description form.

Every job description must indicate the purpose of the job, its scope and duties and responsibilities in a very precise and clear manner.

Every job description will show the required level of education, job knowledge, experience and training so that the applicant/incumbent's eligibility could be measured against the requirement of the job.

Job descriptions will be submitted to HR to ensure that they are complete and signed by the respective Functional / Departmental Heads and are in line with FBL’s standards and procedures.

Job Evaluation

HR may carry out the job evaluation process in consultation with the management as and when required. On the basis of job description / evaluation, each job shall have necessary benchmarking and a grade.

A position will not be evaluated until after Human Resources has obtained as much information as possible from the Position Holder (if an occupied position), and/or Line Manager, and/or Departmental Head.

Job Grades

The grading structure of Faysal Bank is as follows:

Full-time employment:

1. President/Chief Executive Officer

2. Senior Executive Vice President (SEVP) I & II

3. Executive Vice President (EVP) I & II

4. Senior Vice President (SVP) I & II



5. Vice President (VP) I & II

6. Resident Vice President (RVP) I & II

7. Assistant Vice President (AVP) I & II

8. Officer Grade - I

9. Officer Grade - II

10. Officer Grade - III

The Bank may outsource specific jobs/work to independent service provider(s) who for the purpose of execution of the contract and rendering services shall deploy requisite number of persons to the Bank’s premises.

Head HR if required may restructure the grading system based on the best practices and in line with the banking industry. The Head HR in consultation with P&CEO will be the final authority to validate and approve headcount in the form of any other category / Bank contract / third party.

Organisation Chart

HR Function shall maintain a record of updated organograms of the Bank. Each organogram shall depict approved positions with job titles and the reporting relationships.

Business growth and market dynamics may require periodic revision of the structure of the Bankor its components. As such updations shall be instituted by the HR Function and communicated to all staff.

No position on an organogram shall be accepted unless approved by the Head HR and P&CEO.

PAY-SCALES AND SALARIES

The remuneration offered by Faysal Bank to its employees is based on a gross salary, allowances and perks commensurate with the requirements of job, the appropriateness of an employee to the requirements, the seniority of the position and competitive forces.

The pay-scales shall be based on the job categorization which form part of the recruitment policy. The management of the Bank reviews the remuneration of the employees periodically vis-à-vis market forces and the performance of the employees and makes adjustments whenever or wherever required.



PERFORMANCE MANAGEMENT

The objective of Performance Management System (PMS) is to promote a performance culture, reward performers and provide opportunities to employees for their development and progression.

Setting Objectives/ Goals

All staff shall have SMART objectives (specific, measurable, achievable, realistic and time bound).

Goals should be set before the start of the year. These goals shall highlight Business, Personal targets & measures and the given time frame for the each portion of the work to be completed.

Goals will be signed by the immediate supervisor/manager. In the event of transfer or promotion, new goals will be written and signed within one week of transfer and/or promotion.

Performance shall be assessed on the annual basis at the end of the calendar year by the immediate managers/supervisors & reviewed/agreed by the next level supervisor.

All performance reviews must be singed by the concerned employee and the supervisor. In case of disagreement, the employee has the right to document his/her comment with his / her signatures.



ANNUAL PERFORMANCE APPRAISAL

Each year the HR Function will circulate the Performance Evaluation Process with relevant formats as agreed by the management.

All full-time and Bank Contract employees shall be part of the performance evaluation process once every year.

All full-time employees having served the Bank for a minimum of three (3) months in the assessment year, whereas all employees on bank contract with at least six (6) months service in the assessment year with the Bank, shall be eligible for the performance evaluation cycle.

Employees who have been with the Bank for three (3) months or under that period at the time of one Annual Appraisal shall be appraised in the next Annual Appraisal year.

Each employee shall be primarily appraised by his/her line manager / supervisor.

The Annual Appraisal shall be conducted according to pre-determined formats gauging the work performance, attitude and potential of each employee appraised.

The appraiser and the appraisee shall both sign the Appraisal Form and the employee appraised has the right to add own comments on the Appraisers evaluation.

In case the Performance Appraisal is in dispute between the appraiser and appraisee, a higher level manager than the appraiser shall also conduct an evaluation and put own comments on the Appraisal Form.

HR Function may use a variety of performance rating methods from time to time to ensure transparency and to avail new and improved methodology.

Promotions

Promotion exercise shall normally be conducted every year or at such interval of time as decided by the management considering the business and employees’ career progression needs and budgetary provisions.

All promotions shall be made on merit and based on (i) management’s review and individual’s annual appraisal, (ii) individual’s potential to function in the new/ higher level job, (iii) requisite skill set, knowledge and experience, and (iii) availability of positions.

No employee shall have a claim to be promoted to any particular post or grade by virtue of seniority alone.

Promotions to all categories and grades shall be approved in accordance with the Schedule of Administrative and Financial Powers. Where Board approvals are not required, promotions shall be approved by a Committee comprising of P&CEO and Head HR.



Merit based annual Salary Rise / Promotional Increase / Market Based Adjustments

Salary reviews, promotional increases and market based adjustments will be made on the basis of performance, complexity of job and benchmarking with the market. This may be done as a result of annual performance appraisal.

Merit based increase shall be given annually in line with employees’ performance ranking.

The individual salary reviews of high performers/critical staff shall be considered based on criticality and retention need.

The management shall every year decide the rate(s) of merit increase on the basis of business outlook for the Bank, budgetary allocations, and employees’ performance ranking.

Annual salary increase of an employee against whom disciplinary proceedings are pending/in offing shall not be released till the conclusion of the proceedings. Upon finalization of disciplinary process, the decision regarding release shall also be made.

Unsatisfactory Performance

The Bank expects employees to work and perform up to the required standards. In case where employee’s performance rating is 2 or below, his/her performance must be stringently monitored for 3 months. If at the end of 3 month period, there is no significant improvement and the performance is still unsatisfactory, a further 3 months probationary extension may be allowed based on the consent of Functional Head / Head HR OR the Bank may initiate disciplinary proceedings.



SPOT REWARDS

Objective

To provide an opportunity to spontaneously reward achievements on a “one-off” basis, without having to wait for the annual “reward review” based on the performance.

Eligibility

All full-time confirmed employees are eligible to be nominated for this recognition scheme.

Incentivized staff would not be eligible to receive “Spot Rewards” for e.g. PBO, SPBO, Consumer Staff, Agri Staff etc.

Criteria

Grant of spot rewards will be based on some outstanding achievements, contribution or display of exemplary effort e.g. cost savings, revenue generation, meeting stringent deadlines, overcoming formidable obstacles, achieving a breakthrough in a problem which was difficult to resolve.

Not to be considered for “tasks” for “performance levels” normally expected for executing the regular job requirements in a satisfactory manner.

Recognition – as a symbol of recognition for staff, the recipients name will be publicized at least within the Function / Department.

Reward & Recognition

Level 1: To recognize an outstanding job on a project, task or activity including support of day-to-day business operation/process, or for suggestions leading to an improvement of a work process, workflow, or in customer service.

Monetary amount up to PKR10,000

Level 2: To recognize sustained outstanding achievement and/or contribution above and beyond standard job requirements or to recognize suggestions leading to major improvements in the work process, workflow, or in customer service.

Monetary amount up to PKR 25,000

Level 3: To recognize a major extraordinary achievement and/or extraordinary contribution requiring maximum effort that significantly impacted customer service and productivity.

Monetary amount up to PKR 50,000



CEO’S CLUB

CEO’s club is a recognition program designed to recognize employees who have received “5”rating in their annual appraisals.

Eligibility

All staff at Faysal Bank Limited are eligible for the CEO’s club award. The membership of the CEO’s club is awarded to the staff who have a “5” rating in the last annual appraisal. The membership is valid for the period of one year till the next performance appraisal cycle.

Reward and Recognition

The members of the CEO’s club are entitled to the following:

Recognition by the CEO and senior leadership of the Bank during a formal lunch;

Certificate and a momento;

Any staff who has been part of the CEO’s club for a continuous period of three years, would be eligible for a cash award of PKR 100,000/=.



EDUCATION ASSISTANCE PROGRAM

To encourage employees to pursue professional qualifications while working at FBL

Eligibility

All full-time confirmed employees of the Bank.

Employees, taking part-time evening courses by approved local universities, business schools and other local institutes may, subject to the approval of the Functional Head and Head HR, can apply for course/examination fees reimbursed upon successful completion of the course (all parts) and production of receipts / degree / certificate. The following shall apply:

Criteria

Professional Qualification e.g. ICMA, CISA, CIMA, ACCA, CFA, CIA etc.

Performance / requirement of the Bank / job relevance.

Approval is required from the Functional Head & Head HR before applying / enrolling for the said course / program.

Limitations

Reimbursement shall be allowed for those courses which have been completed during the service at FBL.

In case an employee resigns within one year of last payment received, all payments made in respect of above will have to be refunded to the Bank by the said employee.

If at any point during the association with the Bank, an employee has been involved in disciplinary issue, then he/she is not eligible for any reimbursement.

No reimbursement will be made to employees who are under notice of termination of employment.



REWARD FOR PASSING IBP DIPLOMA EXAMINATION

The banking diploma is a professional examination and carries due weight for staff members working in financial institutions and Banks. Accordingly, the Bank shall give due consideration to IBP Diploma holders in hiring, increments and promotions based on their demonstrating abilities to handle the job in a better manner.

In order to encourage Faysal Bank employees to improve their knowledge in banking, the following incentives are offered for passing different stages of the IBP Diploma:

Attempt at which passed exam

Stage – 1 Stage – 2 Stage – 3

First attempt PKR 50,000 PKR 75,000 PKR 100,000Second attempt PKR 30,000 PKR 50,000 PKR 75,000Third attempt PKR 10,000 PKR 15,000 PKR 25,000

The above-mentioned cash awards are available to all confirmed permanent employees working for the Bank.

Further, the Bank at its sole discretion, may reimburse fifty (50%) of the course fee (onceonly) to the successful employee on acquiring DAIBP certification. Such reimbursement shall be made against submission of original proof of payment and copy of the DAIBP Diploma Certificate to HR Function.



PERFORMANCE BONUS

The objective of this policy is to recognize and reward good performers and to distribute bonus in a transparent manner. To accomplish this, a link must be established between the performance of the Bank as a whole and that of bonus distribution based on group and individual performance. For distribution and payment of performance bonus, HR Function with the approval of P&CEO may use different assessment / evaluation techniques from time to time.

Eligibility for performance bonus

All confirmed full-time employees having served the Bank for a minimum of three (3) months in the assessment year.

All employees on Bank contract with at least six (6) months service in the assessment year with the Bank.

Employees on probation, based on performance ratings and target achievements, will be eligible for Performance Bonus on a pro-rated basis from date of joining on confirmation.

Employees who have joined during the year and are fulfilling the above criteria, shall be paid bonus on a pro-rated basis.

Employee must be present on Payroll of HR at the time / date of bonus disbursement.

Employee on a notice period due to separation (resignation / termination) will not be entitled / eligible for payment of performance bonus.

In cases where there may be a redundancy or death or retirement, the amount will be disbursed either to the individual or the legal representative(s).



TAX LIABILITY/DEDUCTIONS FROM SALARY

Deduction of Tax at Source

The Bank would deduct income tax at source from an employee’s salary and other payable dues and pay it to the Income Tax authorities as required by law. However, payment of income tax shall be the sole responsibility of the employee.

Notifying Employees of Change in Income Tax Regulations

The Bank would notify employees of the changes in income tax regulations and ensure their implementation.

Filing Tax Returns

All employees must file on their own the yearly tax returns to the Tax authorities by the due date. The Bank would assist the employees by providing income certificate and other relevant documents. Not filing a tax return will be considered as code of conduct violation.

It is the Bank’s responsibility to answer all queries about the payment of income tax by the employees, but the Bank will only do so if it is asked by the tax authorities or by court order.

Deductions from Salary

The Bank shall have the right to make deductions from salary/allowances for all/any of the following reasons:

Required by the law or by the orders of a court or other authority competent to make such an order;

On written authorization of an employee for refund of loans of any kind/any amount due to the Bank on any account;

Unauthorized absence from duty, and

Deductions in lieu of the notice period, where applicable.



LEARNING AND DEVELOPMENT

SECTION ‘G’

Chapter Contents:

Purpose Learning &

development strategy



Section G: LEARNING & DEVELOPMENT

PURPOSE

To provide employees the opportunity for career development with a vision to achieve maximum flexibility in meeting current and future skills requirements.

To foster an environment that enhances skills and provides future growth.

To provide opportunities to staff to maintain and develop skills, adapt to changing workplace environment and fulfill employment potential.

LEARNING & DEVELOPMENT STRATEGY

Learning & Development to provide vital support in personal development of employees. This is a continuous process which will:

Align training needs to meet employee and business needs;

Continuously update course material inline with the industry trends;

Ensure close communication with consultants to provide insight to the best practices of the industry;

Provide on-the-job and off-the-job training.

Learning & Development shall have an approved training budget. In the event that a training need is identified for which no provisions have been made in the budget, special approval shall be required from P&CEO.



LEAVE POLICY

SECTION ‘H’

Chapter Contents:

Casual leave Sick leave Privilege / annual

leave Maternity leave Pilgrimage leave Leave without pay Facility of Saturdays

off Office timings



Section H: LEAVE POLICY

CASUAL LEAVE

Total of Ten (10) working days of Casual Leave may be allowed in one calendar year to meet emergency and unforeseen circumstances, this includes death in the family (compassionate grounds – 3 working days), child births (paternity leave – 2 working days up to 2 births) where advance leave cannot be planned.

Casual Leave being only emergent and incidental in nature may not be allowed for more than one day at a time. Any need, for absence of more than one day from work, shall be accounted for by taking Privilege/Annual Leave.

There will be no carry over or encashment of Casual Leave.

SICK LEAVE

Eight (8) working days of Sick Leave may be allowed during one calendar year on accountof medical illness.

Sick Leave where availed for more than three (3) days at a time must be supported by a Medical Certificate, from a registered physician, confirming the employee’s inability to attend office.

There will be no carry over or encashment of Sick Leave.

PRIVILEGE / ANNUAL LEAVE

Twenty Four (24) working days (exclusive of public holidays, Sundays and non-working Saturdays) shall be allowed as Privilege Leave during one calendar year.

Each Function / Department / Branch must plan its PL roster well in advance, latest by end of January of each year. An attempt must then be made to follow the plan diligently.

The PL roster duly approved by department/division/branch manager must be submitted to HR Function and any changes therein must also be intimated to HR Function.

PL must be availed for fifteen (15) days without break at least once during the year and the balance availed when required. It is mandatory requirement to avail at least 15 concurrent days of PL during one calendar year.

PL must be availed each calendar year. There will be no encashment of PL.

Carry over of PL up to a maximum of 10 working days may be allowed to the following year, however, it must be availed by end April. This may be invoked only in exceptional



circumstances in advance by 3rd quarter of each calendar year and endorsed by the Functional Head in concurrence with Head HR.

It is strongly advised that while making leave rosters, no employee be allowed to avail PL during the period of half year and annual closing of accounts and the subsequent reporting required, to ensure due consideration to meet targets and completing reports.

MATERNITY LEAVE

Seventy-Two (72) working days may be allowed on account of Maternity Leave to a female employee (six weeks immediately preceding and including the day she delivers the child and six weeks succeeding that day).

Maternity leave shall only be granted after 28 weeks of pregnancy, provided Doctor’s letter of confirmation is submitted.

Maternity Leave shall only be granted twice in the entire service of a female employee. For confinements beyond the second one, the employee shall take leave from her normal leave account or unpaid leave.

Maternity Leave may be granted in continuation of or in combination with any other kind of leave as may be due and admissible to a female employee.

Maternity Leave shall be admissible upon confirmation.

Notice of leave must be submitted at least one month prior to the employee departure.

PILGRIMAGE LEAVE

A maximum of Fifteen (15) working days on account of performing Hajj for Muslims andrespective "holy places" for staff practicing other religions shall be granted to employees who have completed two (2) years service with the Bank. Balance days, if required, by the employee shall be made up by availing own PL.

Pilgrimage leave shall be admissible once during service with FBL.

LEAVE WITHOUT PAY

The leave without pay is not a matter of right and may only be considered in extremely exceptional circumstances on the recommendation of the business and on the sole discretion of the management.

Prior approval of the Functional / Departmental Head and Head HR is required for grant of leave without pay.

HR shall ensure stoppage of salary and appropriate deductions of staff liabilities in case leave without pay are allowed.



Leave without pay period will not be included in the performance appraisal cycle, vis-à-vis all payments will be done on a pro-rata basis

FACILITY OF SATURDAYS OFF

HR Function, at its sole discretion, may allow staff in certain grades or assignments, the facility to avail specified Saturdays off. Specified Saturdays shall be recorded by HR Function and shall not be changeable to the convenience of employee.

This facility may be availed only with prior permission of the respective supervisor / line manager of concerned Function / Department provided that there is no significant work pending with the concerned employee.

This facility is strictly a privilege, on approval of management, and not a right of the employee and cannot be quoted as a precedent or reference by other employee.

Joining duty before expiry of leave:

An employee on leave may only return to duty before the expiry of the leave if permitted by authority which sanctioned his/her leave. In this case, employee shall inform leave administrator to adjust the remaining leave balance through leave management system with the proper approval from concerned line manager.

In case an employee is recalled for duty and his/her remaining leave is cancelled, the fare then admissible shall be for one way journey only.

OFFICE TIMINGS

Employees are responsible for good attendance and punctuality. They are expected to abide by the existing working hours of the Bank which are as follows:

Working Days TimingsMonday to Thursday From 9.00 a.m. to 5.00 p.m.

(Lunch & Prayer break: 1.00 to 2.00 p.m.)

Friday From 9.00 a.m. to 5.00 p.m.(Lunch & Prayer break: 1.00 to 3.00 p.m.)

Saturday From 9.00 a.m. to 2.00 p.m.

Please note:

Timings during Ramzan and in winters at specific stations may differ.

In accordance with SBP requirements, all branches are advised to adhere to the non-stop banking / evening banking hours.

Employees are required to notify their respective departmental Manager if they are unable to come to work. They must notify the superiors by 10.00 am or it will be considered leave.

Employees on Probation

Employees on probation would be entitled to avail Privilege and Sick Leaves on a pro-ratabasis.



BENEFITS

SECTION ‘I’

Chapter Contents:

Group life insurance Medical coverage Hospitalization

insurance Club membership Car policy Cellular phone bill

reimbursement Leave fare

assistance Education subsidy Fixed bonus Provident fund Gratuity



Section I: BENEFITS

GROUP LIFE INSURANCE

The Bank is concerned about the welfare of the family in case of an unfortunate death or disability of the employee while in the employment of the Bank.

All staff members of the Bank are insured under the Group Life Insurance scheme in the event of early and untimely death.

The employees are insured against following emergencies:

Natural death; Accidental death; Permanent / partial disability; Temporary / total disability (accident only); Terminal illness benefit (natural).

Entitlement

All employees irrespective of grade are covered up to a maximum sum of PKR 5.0 million

The Bank will arrange to insure the employee.

The Bank will update the insurance company in case of separation of employee.



MEDICAL COVERAGE

All full-time employees (self, spouse and children) and employees on Bank Contract (self only) shall be covered by the employee medical policy.

All full-time employees and those on Bank Contract shall be paid an out patient reimbursement of ten percent (10%) of basic salary per month with upper and lower limits set as per policy from time to time (currently minimum PKR 800/- per month and maximum PKR 7,000/- per month).

Full-time employees are required to ensure that details of all immediate family members (are submitted to HR Function on the prescribed format). Family shall mean the employee, his/her spouse and unmarried dependent children up to the age of 21 years only.

Families of Employees on Bank Contract are not covered under this policy.



HOSPITALIZATION INSURANCE

All permanent employees and their dependants (spouse and unmarried dependant children of up to 21 years of age only) shall be covered by a hospitalization insurance cover.

In all such cases, where panel hospital is not used, the actual cost of hospitalization, up to the limits of the policy based on employee grades, shall be reimbursed to the employee within the terms of the policy.

Reimbursements against hospitalization policy shall be effected by submitting all necessary documents to HR Function which shall lodge the claim with the insurance company.

No reimbursement shall be made for cosmetic, dental or optometric treatment and equipment.

The medical policy does not cover a spouse who is gainfully employed and is entitled to reimbursement of medical expenses from his/her employer.

Families of Employees on Bank Contract are not covered under this policy.



CLUB MEMBERSHIP

Permanent confirmed employees in grades SVP to SEVP shall be entitled to membership of one club during their Tenure with the Bank after completion of a minimum of one (1) year in the relevant grade.

The maximum amount contributable by the Bank for membership shall be as per following amounts:

o SVP – Maximum PKR 500,000/- of which first PKR 300,000/- to be paid by Bank and balance to be shared in ratio of 50:50.

o EVP – Maximum PKR 600,000/- of which first PKR 400,000/- to be paid by Bank and balance to be shared in ratio of 50:50.

o SEVP – Maximum PKR 1,000,000/- of which first PKR 600,000/- to be paid by Bankand balance to be shared in ratio of 50:50.

Membership fee shall be expensed out in four (4) years and the employee shall be liable to reimburse to the Bank the balance as per policy in case of leaving the Bank before completion of four years.

Permanent confirmed employees in grades SVP to SEVP shall also be entitled to reimbursement of monthly club subscription fees (against proof of payment) as follows or as changed from time to time:

o SVP – one monthly subscription with a maximum monthly payment of PKR 1,000/-.

o EVP – one monthly subscription with a maximum monthly amount of PKR 1,500/-.

o SEVP – two monthly subscriptions with a maximum monthly amount for both of PKR 3,000/-.

The Bank shall determine an approved list of clubs to which membership by eligible employees shall be permissible. This list shall be periodically reviewed.



CAR POLICY

The car policy will be applicable to staff in Bank cadres RVP thru SVP. The policy is divided in to 2 criteria:

Salient features:

Staff in possession of Bank cars aging up to 24 months

The staff will be given a car loan at 6% per annum to purchase the Bank car in his/her use The loan amount will be ascertained by General Services at the market value/purchase price whichever is lower; (not lower than the book value, and based on immaculate condition of the car).

Employee will be given a fixed monthly allowance (as per grade entitlement).

Hire Purchase Agreement (HPA) – Bank will be marked (cost will be recovered from the employee).

Loan period will be for a period of 4 years (max.) e.g. if a vehicle is 12 months old, then the loan payment tenure will be 36 months (installment will be worked out on 36 months e.g. 48-12=36).

Promotion In case the employee is promoted where the car entitlement changes, he/she may continue with the same vehicle. In this case the applicable fixed monthly allowance will be paid. or

Post repayment of existing loan, the employee will be eligible for LBCM.

Staff in possession of Bank cars aging from 24 - 48 months

Employee will continue with the existing Bank car and terms, upon completion of 4 years will be eligible to purchase car at 36% of purchase price.

In case the employee opts for LBCM, the employee must purchase the existing car at market value (ascertained by GS) or surrender the vehicle to the Bank.

Promotion The employee may avail fresh entitlement under the new scheme by either purchasing the existing vehicle as per the grid in table 1.3 or by surrendering the existing vehicle to General Services.

New Joiners Eligibility will be at the time of joining as per the grade entitlement loan and allowance.

Loan take-over will be admissible from previous organization. However to the extent of grade entitlement/allowance.

Where the loan take over amount is less then the FBL loan entitlement, the differential will be given according to the grade entitlement.



Loan Based Monetization Grid:

Table 1.1

Grade

Loan Amount @ 6% mark-

up

Monthly Allowance

Fuel Allowance

(litres)

Driver’s Salary

Uniform Allowance

RVPII / RVP I 795,000/= 28,500 125 – RVP II225 – RVP I

Nil Nil

VPII / VP I 1,329,000/= 44,500 300 5,000 3,000 per annum

SVPII / SVP I 1,676,000/= 51,500 300 5,500 3,000 per annum

Terms of LBCM:

The policy is applicable to RVPs, VPs and SVPs only.

Loan based monetization @ 6% markup.

A fixed monthly amount (worked out on annual basis) will be disbursed to eligible employees.

The built – in factors / components as part of the monthly allowance are:

Loan installment (principal & markup);

Insurance;

Registration;

Road tax;

Additional tax impact.

Loan period 4 years (max.).

Upon repayment of loan, vehicle to be transferred in employee’s name.

Eligibility of new loan, post repayment of existing loan.

Loan for the purchase of new / used car (used car model should not be more than two years old).

The employee will be responsible and shall bear the expenses related to vehicle registration, annual insurance, road tax, vehicle tax, repair and maintenance and any recurring taxes/road taxes. However, the Bank will arrange for annual vehicle insurance and registration (as per approved panel of companies) and the cost will be recovered from the employee.

The vehicle will be marked HPA with Faysal Bank Limited.

The employee may opt for a higher value vehicle, however, any additional cost to that effect will be absorbed by the employee and loan will be booked at the amount which is as per employee’s grade entitlement.

Amount in PKR



The loan based monetization policy may be reviewed every year to keep it in line with the prevailing market practice.

Upon resignation / separation, the employee will have the outstanding loan taken-over by the new organization or settle the same. Incase the employee fails to do so within 15 days of resignation / separation, commercial rate would be charged.



EVPs & Above:

Car Policy is to provide eligible employees with the car/s for personal and business use.

Policy Details:

Employees in above grades will be eligible for car/s as per the following:

Table 1.2

Grade Entitled CarFuel

AllowanceDriver’s Salary

Uniform Allowance

EVPs

2 cars or 1 of equivalent value (maximum limit of PKR. 3.1 million)

Honda Vti Oriel PT (Prosmatec) or

Honda Vti (Prosmatec) or

Toyota Altis

and

Suzuki Liana RX CNG MT or

Suzuki Swift or

Honda City or

Toyota Corolla Xli or Gli

350 litres per month

6,000 per month

3,000 per annum

SEVP II2 cars or 1 of equivalent value

Honda Accord & Toyota Corolla XT (Xli) MT

actual with a cap of 450

actual 3,000 per annum

SEVP I Mercedes or 2 cars of a max value of Rs.6 million

actual with a cap of 500

actual 3,000 per annum

The Bank may provide the employee a new car or if available, an existing car not more than 18 months old. However, in such cases, the employee shall be given the benefit of car purchase option from the original date of purchase.

The eligible employee may request a pool car from General Services till such time, the ordered car is delivered.

The Bank shall be responsible for the initial registration and the annual insurance.

The employee shall be directly responsible for the repair and maintenance and the annual taxes of the vehicle. However, in case of SEVPs, the car(s) shall be maintained by the Bank.

Upon completion of four years or in case the employee is promoted to a grade where car entitlement is changed and he/she becomes entitled to a new car, the employee shall have the option to purchase the car currently used after payment of amount as per table 1.3:

Table 1.3Period % of original cost of car1 Year & 6 Months 76%2 Years 68%3 Years 52%4 Years 36%



In case where an employee is promoted from SVP grade to EVP level, he/she will have to settle in full the outstanding loan which was created as part of loan based car monetization scheme (in SVP grade).

An employee will only be eligible to EVP grade car entitlement upon settlement of existing car loan, till such time his/her allowance (as per SVP grade entitlement) will continue. Upon settlement of the loan, car allowance will also be discontinued.

The employee may opt for a higher value vehicle, however, any additional cost to that effect will be borne by the employee and GS will obtain an undertaking to this effect.

For periods in between above dates, after completion of at least eighteen (18) months, the amount may be prorated on the completed number of months. However, purchase option will not be available at the time of leaving the Bank.

Incase of SEVPs and above, the purchase option shall be restricted to two cars only during the tenure with Faysal Bank. Once during the service as per table 1.3 and subsequent on retirement from the Bank provided that minimum 4 years period has elapsed since exercise of the first purchase option.

Fuel Reimbursement

The Bank shall pay fuel reimbursement as per the table 1.1 and 1.2 to each grade of employee at prevailing market prices of super / premium quality.

Driver’s Salary

The Bank shall reimburse salary of a driver to employees in grades VP and above as per table 1.1 & 1.2 upon submission of a letter addressed to Head of HR confirming hiring of a driver and undertaking that one shall continue to be hired.

The entitled employee shall be reimbursed Rs. 3,000/- (Rupees Three Thousand Only) annually. As such the driver must be neatly dressed at all times.

The fuel allowance, driver’s salary and uniform allowance will be re-visited from time to time by Head of Human Resources and approval of P& CEO.



CELLULAR PHONE BILL REIMBURSEMENT

Cell phone reimbursement shall be allowed to VPs and above on submission of paid invoices, the payment schedule post the introduction of Black berry Connection to senior / middle management based on business requirement. It is advised that the cell phone and Black Berry policy is clubbed together and the following reimbursement will be allowed as per the payment procedure given below:

Employee Grade (& assignment) Maximum Amount exclusive of BB (in PKR)

SEVP 6,500/- p.m. exclusive of BB line rent, service charges, sales tax & advance tax on connection

EVP 5,000/- p.m. exclusive of BB line rent, service charges, sales tax & advance tax on connection

SVP (business functions, CBG, IBG, CMU, CF, Treasury, Agri, SME, BMs/AMs)

3,000/- p.m. exclusive of BB line rent, service charges, sales tax & advance tax on connection

SVP (all others) 2,000/- p.m. exclusive of BB line rent, service charges, sales tax & advance tax on connection

VP (business functions, CBG, IBG, CMU, CF, Agri, SME, BMs, BD)

2,000/- p.m. exclusive of BB line rent, service charges, sales tax & advance tax on connection

VP (all others) 1,000/- p.m. exclusive of BB line rent, service charges, sales tax & advance tax on connection

All official calls shall be borne by the Bank, however, the user is required to identify / highlight the official calls for reimbursement. This reimbursement is valid for the Black Berry number & only one other cell number in the name of employee. This number must be notified to general services for their records. In case of change, please ensure that general Services remains informed.

Residential Phone Bill Reimbursement

Permanent Employees in grades of SEVP shall be entitled to reimbursement of residential phone bills up to an amount of PKR 5,000/- against proof of payment monthly.

Reimbursement of Residential Guard Services

Permanent employees in grade of SEVP shall be entitled to the reimbursement of up to 2 (Two) residential security guards at actual amount contracted for their services per month against proof of contract.



Permanent employees in grade of EVP shall be entitled to reimbursement of one residential security guard up to a maximum amount of PKR 9,000/- (rupees Nine Thousand Only) per month against proof of contract.

The General Services Division of the Bank shall arrange for guards only for SEVP and above. EVPs shall themselves be responsible for arranging own security guards and the Bank shall only provide reimbursement of cost as above mentioned as on 15th of each month.



LEAVE FARE ASSISTANCE

All permanent confirmed employees shall be entitled to Leave Fare Assistance once per calendar year January 1 to December 31 to be paid in July of each year as per following schedule or as changed from time to time:

Employee Grade LFA Entitlement per annumSVPs & above 1.20 monthly gross salaryRVPs & VPs 1.15 monthly gross salaryAVPs 1.10 monthly gross salaryOG III to OG I 1.07 monthly gross salary

Staff members joining during the year, after confirmation of services, shall be entitled to LFA payable prorated from date of joining.

Similarly staff members who resign and leave the Bank after payment of LFA shall be entitled to only the prorated LFA amount till their last working day with the Bank. Balance shall be recovered from exiting staff within their final settlements.



EDUCATION SUBSIDY

The Education Subsidy is available to permanent confirmed employees in grade AVP and below to meet cost of the education of 2 children receiving full time education.

An allowance of PKR 750/- per month per child or actual fee paid, whichever is less.

The policy shall not cover the circumstances where the spouse of an employee is gainfully employed and his/her employers run an education subsidy policy also.

The scheme shall be open to all permanent employees and will be restricted to full time/ regular students in educational institutions in Pakistan only.

To be eligible for the education subsidy the child of an employee must be unmarried and below the age of 21 years.

Educational Institution under this policy means a Montessori, School, College or a University registered in Pakistan (Day Care Centres or Madrasaas are not included).

Student under this policy means a full-time regular student of an educational institution. Fees of tuition centers are not covered under this policy.

Fee under this policy means amount payable to any educational institution on account of admission fee, tuition, laboratory and school library charges, students fund etc.

Minimum age of the child/ student eligible for registration in this policy shall be three (3) years.

In order to avail the Education Subsidy, the employee shall submit a completed form to HR Function along with the receipts of bills / proof of payment duly approved by the concerned Functional / Departmental Head.



FIXED BONUS

All employees (permanent employees, employees on probation and Bank contract employees) shall be eligible for the fixed annual bonus.

The fixed annual bonus shall be applicable to one calendar year from January 01 to December 31.

The annual bonus shall be paid in one lump sum during October of every year.

The annual bonus shall constitute one gross salary per calendar year.

The said annual bonus shall also be treated as bonus under Standing Order 10- C for clerical/non-clerical employees (workman cadre).

The salary applicable for disbursement of annual bonus shall be as on September 1 of that calendar year.

An employee shall have completed a minimum of ninety (90) calendar days of the bonus year to become eligible for receipt of that years annual bonus.

Employees joining the service of the Bank during the calendar year and having completed a minimum of 90 days will be eligible for the annual bonus on a prorated basis, based on gross salary as on the date of joining.

Employees on probation as on date of annual bonus shall be paid the annual bonus amount on confirmation of their services with the Bank.

Employees who have resigned and are serving notice period on the date of annual bonus disbursement will not be eligible for receipt of the bonus.

In case an employee resigns from the service of the Bank after receipt of annual bonus but before end of the calendar year, the prorated bonus amount for the period beyond the date of resignation shall be recovered from the employee by the Bank.

Employees who are entitled to reimbursement of personal driver’s salary shall also be reimbursed one monthly gross salary (as per driver entitlement) per calendar year for the said driver. However, undertakings as previously stated shall be on file prior to such reimbursement.



PROVIDENT FUND

As per rules an amount of ten percent (10%) of a permanent employee’s basic monthly salary shall be contributed by the Bank towards the Provident Fund on a monthly basis to match a similar contribution made by the employee towards the Fund.

Contributions towards the Fund shall begin after the confirmation of permanent employment.

As per rule 37 of the Faysal Bank P.F. rules, every member on conclusion of service is entitled to receive from the Provident Fund, his/her own contribution as well as contribution of the Bank with profit thereon.

An employee who resigns from the Bank is entitled to receive contribution made by the Bankand profit thereon of the Fund (rule 38), as amended. (Please note that this is subject to approval from PF trustees and regulatory authorities, which is awaited).

As per rule 39, if a member is dismissed from service of the Bank for misconduct including but not restricted to dishonesty, disobedience, insubordination, absence without leave, neglect of duty, any form of misconduct, found guilty of any criminal offence, he/she shall not be entitled to PF contribution made by the Bank and the profit thereon standing to his/her credit in the books of the Fund.

Provided that the workman cadre (clerical/non-clerical) employee shall be entitled for PF even in case of dismissal.



GRATUITY

An amount of one month’s basic salary per annum shall be contributed by the Bank towards the Gratuity Fund of a permanent employee.

An employee who resigns from the service of the Bank before completion of five (5) years is not entitled to receive any payment on account of Gratuity.

If an employee is dismissed from service of the Bank for misconduct including but not restricted to dishonesty, disobedience, insubordination, absence without leave, neglect of duty, any form of misconduct or found guilty of any criminal offence, he/she shall not be entitled to any amount from the Gratuity Fund.

Eligible service shall be calculated and expressed in completed years, fractions of a year equal to or in excess of six months shall count as a full year while fractions of a year less than six months shall be ignored.



STAFF LOANS

SECTION ‘J’

Chapter Contents:

Housing finance / mortgages

Car loan Personal loan Motorcycle loan



Section J: STAFF LOANS

To promote an employee friendly environment, these facilities are available to staff to meet their financial requirements whilst working at FBL.

Permanent employees shall be entitled to avail financing facilities for housing, vehicle and personal exigencies based on their grade and length of service with the Bank as per policy.

The terms of employee loan facilities may be changed from time to time based on market dynamics.

Mark-up rates pertaining to the loans may be subject to change based on the Bank’s cost of funds.

Employees on probation, or facing disciplinary action or employees whose cases are subjudice in any court of law shall not be eligible for staff loan facility.

Management reserves the right to reject any loan application without assigning any reason.

Loan deductions from staff salary should not exceed 50% of Gross Salary.

All deductions shall be made at source.

Staff is required to obtain NOC from the Bank before undertaking any other personal liability / loan or any contingent financial commitment outside the Bank.

Profit rates on Staff Loan Schemes:

Table 1.2

Loan Type Profit RateHouse Loan 5% on reducing balancePersonal Loan 4% on reducing balanceCar Loan 4% on reducing balanceMotorcycle Loan 3% on reducing balance

Conditions on the loans disbursed prior to HR policy v-2.0 remain unchanged.

Should an employee resign / be dismissed / terminated for any reason whatsoever, the Loan plus profit thereon shall become immediately due and payable. Failing which the Bank will have the absolute right to apply prevailing commercial rate of profit until full and final settlement of entire outstanding Loan and profit thereon.



HOUSING FINANCE / MORTGAGES

Eligibility

All full-time confirmed employees of the Bank.

3 years of continuous service with a clean service record at FBL and a performance rating not less than “B / 3”, or 3 years of Banking experience subject to successful completion ofprobationary period.

Entitlement

Maximum amount permissible under house loan Fifty (50) gross monthly salaries or as per the grid, whichever is lower:

o SEVP : 15 milliono EVP : 12.5 milliono SVP : 10 milliono VP : 7.5 milliono RVP : 6 milliono AVP : 5 milliono OG I : 4 milliono OG II : 3 milliono OG III : 2 million

Note: irrespective of loan entitlements tabulated above, at any point in time during service the total deduction on account of loan repayments should not exceed 50% of the employee’s net salary including the loan applied for. This includes all loans availed internally / externally by the employee who is required to disclose any outstanding loan in his/her name and sign a declaration.

Top-up

When the employee limit increases as a result of promotion / salary increase, the employee can request an enhancement for home improvement, construction or renovation once during serviceand tenure of that loan with FBL.

The employee has to submit the following documents along with the loan requisition:

Architectural plan

Cost of work plan

Survey report of existing premises and its valuation

Terms of payment – contractor or applicant

Repayment

Recovery period is up to 18 years or up to 59 years of age of employee whichever is less.



Mark-up Rate

For mark-up rate on Housing Finance / Mortgages, please refer table 1.2

Other Conditions:

The grant of housing loan shall be made for any of the following:

o For the purpose of purchasing a plot of land to construct residential accommodation

o For the completion of construction of residential accommodation which is partially constructed at the time of application

o For the purchase of fully constructed residential accommodation along with the land whereon it is situated

o For the purchase of partially constructed residential accommodation along with the land whereon it is situated

Staff to contribute minimum 20% towards total purchase price as own equity.

The property / land should not be purchased from immediate family member i.e. parents, brothers, sisters, spouse, sons, daughters, parents-in-law, brothers/sisters-in-law and sons/daughters-in-law.

Employees left with 5 years or less service will not be eligible for housing finance.

In the event that there is insufficient budget available with the Bank, the loan will not be considered.

Preference will be given to staff not owning any property.

Disbursement shall be authorized by the HR Function only after CAD approves the completed documentation. The original property documents shall be held in custody withHead Office CAD, Pan-Pakistan basis.

The equitable mortgage should be completed within a maximum period of three months from the date of disbursement. In case equitable mortgage is not completed within the stipulated time a penalty at the prevailing commercial rate shall be recovered, with the Loan facility becoming immediately payable.

The Bank may also at its discretion and as per the Eligibility Criteria and Terms & Conditions as defined in the Approved Product Program, may grant loans on preferential mark-up rates, which are subject to periodic review and are governed under the Rate Grid circulated by Consumer Finance, from time to time. Employees, who leave the Bank, may avail these Product Program based facilities subject to the normal Mark-up rates.

Insurance

Mortgage insurance will be arranged by the Bank on behalf of the employee, however the premium amount shall be deducted from the employee’s monthly salary (equal monthly installment for the insured period).



Separation

After separation from the Bank, the prevailing commercial product rates will be applied on entire outstanding principal after allowing 15 days grace period to the ex-employee. A signed declaration of the above is to be obtained from the employee as part of a pre-condition to the loan being sanctioned.

New Loan

An employee will be eligible to avail a fresh loan upon settlement of existing loan provided the loan disbursement date from the existing loan is at least 3 years.

In case of loan takeover, the tenure of eligibility of house loan would be counted from the actual date of disbursement of loan (from previous organization). Proof of the same shall be provided by the applicant.

This facility will only be available twice during service with FBL.

Other Costs

Costs of security documentation and valuation will be borne by the employee.

Loan Takeover

The loan liability of employees from their previous employers will be picked-up in accordance with their maximum loan limit on the basis of their debt service ratio (DSR).

Employee can avail a fresh loan, post repayment of existing loan, after one year of continuous service with FBL.

The forced sale value (FSV) of property to be purchased has to be assessed by the Bank’s approved architect / appraiser at the expense of the employee.

Additional Conditions

Employees are required to execute a memorandum of deposit of title deeds to create a mortgage over the property to be financed in favor of the Bank. All documents will require prior legal clearance from the *Bank’s Legal Counsel / Legal Department.

The forced sale value (FSV) of the property to be purchased has to be assessed by the Bank’s approved architect / appraiser at the expense of the employee.

Disbursement

The disbursement of loan shall be subject to the completion of the relevant documents. On approval, the disbursement of loan will be as follows:

Purchase of Plot:

Up to 50% for purchase of plot upon submitting:



A valuation certificate;

A certificate of non-encumbrance;

Vetting of the property documents as per the *Bank’s Legal Counsel / Legal Department, and

Advance (biyana) payment as per sale agreement, or

Any other document as required by the Bank.

The remaining loan amount will be disbursed in three equal installments:

1st : For making advance payment and starting construction work

2nd : Upon completion of plinth level,

3rd : On completion of the structure for “finishing”

Construction must begin within 1 year of purchase and must be completed within 2 years of commencement of construction, failing which prevailing commercial rate would be charged on the outstanding loan amount.

Note: CAD will ensure all the above conditions are fulfilled in accordance with the policy and will liaise with HR for necessary payments.

Purchase of Constructed House / Apartment

For purchase of a constructed house / apartment, the disbursement will be released through pay-order made for “accounts payee” or the “seller” at the time of execution of sale deed after obtaining all necessary documentation / charge forms.

Full particulars of the property are to be given on payment order and particulars of the same are to be mentioned in the sale deed. Payment order will be delivered at the time of execution of sale deed, lease deed or sub lease deed before the sub-registrar.

Documentation

Standard documentation for the housing loan facility includes:

Mortgage deed in cases where facility is allowed through registered mortgage;

Memorandum of deposit of title deeds in cases where facility is allowed through equitable mortgage;

Letter of lien for staff provident fund;

Power of Attorney;

Demand Promissory Note (IB 12);

Original property documents along with details of previous owners;

Any other documents required by the Bank.



In addition to the above, following documents are also required to be submitted:

Constructed House Open Land Apartment Lease deed Sales deed or

conveyance deed Search certificate Valuation certificate / bill

of quantity from Bank’s architect

Approved building plan / map

Permission to mortgage favoring FBL from KMC / KCA / DHA

Property tax challan for current year

Allotment orders Possession certificate Transfer order Lease deed Approved building plan NOC from KDA / KMC or

cantonment board Valuation certificate from

Bank’s architect

Sub lease Sale deed NOC from builders Permission to mortgage

favoring FBL from lessee Approved building plan Property tax challan for

the current year Valuation certificate from

Bank’s architect Possession for

confirmation of apartment

All documents will be vetted by the *Bank’s Legal Counsel / Legal Department and kept in safe custody of the Bank.

Municipal Taxes

Payment related to ground rent, municipal and other levies, taxes, rates and other dues payable in respect of land and / or the building or any other payments connected there with, shall be the sole responsibility of the employee.

Cessation of Service

In the event the employee services are terminated for any reason from the Bank, outstanding loans with accrued mark-up will become repayable immediately.

Note: the employee shall not rent, sell, mortgage, gift, exchange, or otherwise transfer or encumber the land, buildings, other constructions until he / she has repaid the full principal of sum of the loan together with accrued / updated mark-up and / or other dues applicable, if any.

*It has to be a lawyer from the approved Bank’s panel and the opinions both pre and post mortgage should be concurred / endorsed by Bank’s legal department.



CAR LOAN

Eligibility

On confirmation

Employees in Officer Grade III up to AVP I.

Employees provided with company cars shall not be eligible for car loan facility.

Note: Staff availing car loan will not be eligible to avail motorcycle loan.

Amount

Maximum amount permissible: twenty (20) gross monthly salaries or PKR 01 Million, whichever is lower.

Tenure

Recovery period is up to 5 years.

Mark-up Rate

For mark-up rate on Car Loan, please refer table 1.2

Other Conditions

Only those staff members shall be eligible who have not been otherwise provided a vehicle by the Bank.

Staff shall contribute 10% of the value of car as equity.

Model / Year of manufacture of the car shall not be more than five years old.

Loan shall be released through pay order in the name of the seller/ vendor.

Where Bank is taking over a car loan facility from previous employer with prior written approval of management, payment shall be made to the previous employer against receipt of all relevant documents.

Vehicle shall be jointly registered with FBL under Hire Purchase Agreement (HPA).

A comprehensive car insurance policy from an approved insurance company shall be obtained by staff member at his / her own cost wherein FBL will be nominated as beneficiary.

Incase of old car, employee needs to submit 3 quotations from authorized car dealers in order to ascertain car value

An employee can apply for a new transport loan after two years of the disbursement of existing loan, post repayment of outstanding amount.



PERSONAL LOAN

Eligibility

On confirmation

All full-time employees of the Bank.

Amount

Maximum amount permissible: two (2) gross monthly salaries.

Tenure

Recovery period: two (2) years.

Mark-up Rate

For mark-up rate on Personal Loan, please refer table 1.2

Other Conditions

Personal Loan facility is meant for meeting exigencies and should not be used as a regular financing activity.

An employee can apply for a new personal loan after six months of the repayment of previous loan.



MOTORCYCLE LOAN

Eligibility:

Employees in OG III and OG II grades of the Bank.

One (1) year of service with Faysal Bank.

Note: Staff availing motorcycle loan will not be eligible to avail car loan.

Amount:

Maximum amount permissible: up to PKR 50,000/-.

Tenure

Recovery period is Three (3) years.

Mark-up Rate

For mark-up rate on Motorcycle Loan, please refer table 1.2



TRAVEL POLICY

SECTION ‘K’

Chapter Contents:

Domestic travel International travel General rules



Section K: TRAVEL POLICY

To facilitate staff on business related travel, the following is applicable:

DOMESTIC TRAVEL

Travel by Air

Following shall be the entitlement on airline class for domestic travel as per grade of employee:

Grade Entitlement

P&CEO Business

SEVP Economy Plus

EVP Economy Plus

SVP & VP Economy

RVP & Below Economy

Where air travel is not an option, following modes of transportation can be used:

Travel by Rail

Grade Entitlement

AVP & above A/C Sleeper

OG III to OG I Lower A/C

Travel by Road (within region)

If the only option is travel by road, than for RVPs and above the preferred mode would be Bank Cars.

When Bank provided cars cannot be used, Bank’s travel desk will arrange rented cars for RVPs and above, however AVPs and below will be required to take prior approval from relevant Functional Head which will be given on case to case basis.

For AVPs and below, undertaking intra-city travel (within region) road travel would be via personal car / hired taxi / public transport , and reimbursement of fuel expenses would be as follows:

Intra City (within region)AVP and below : PKR08 per kilometerRVP and above : at actual



Inter CityAVP and below : PKR 8 per kilometerRVP and above : at actual

Travel by coach / public transport for all cadres – at actual

Own Accommodation

If employee chooses to arrange his/her own accommodation, their entitlement per diem allowance is as follows:

Daily Allowance for Day Trip

The daily allowance for day trip would be in lieu of hotel accommodation, meals, incidentals and other expenses incurred by employees as a result of travel.

The daily allowance for day trip would be as follows:

Grade Entitlement

SVP & above PKR 600/=

OG III to VP PKR 500/=

Bank Provided Accommodation

Grade Entitlement

P&CEO 5 Star (standard room)

SEVP 5 Star (standard room)

EVP 5 Star (standard room)

SVP & VP 4 Star or as suitable (standard room)

RVP & Below 3 Star or as suitable (standard room)

Note: above entitlement is only the room rent. Hotel room service or mini bar charges are not allowed. Meals and other incidentals must be paid from the per diem allowance. Taxi charges will be reimbursed on production of actual bills.

The category / city wise approved list of hotels along with the existing room rent charges is available with General Services. Room rent has been negotiated by GSD and will only be applicable, changes will be notified by GSD. All reservations must be done by GSD travel desk.

Female employees from Grade OG III to RVP would be entitled to a 4 star hotel. In cases where

Grade Entitlement

SVP & above PKR 2,000/= per day

VP and below PKR 1500/= per day


HR Policy Manual..................................................................................................................................................... Page 100 of 145

guest houses are available, female employees may use their discretion.

Per Diem (for hotel / guest house)

Grade Domestic

EVP & above Actual Bills

SVPs PKR 1,000/=

VPs & RVPs PKR 800/=

OG III to AVPs PKR 600/=

The per diem allowance would be provided to meet expenses on meals, laundry, personal calls, however, taxi charges will be reimbursed through production of actual bills.

INTERNATIONAL TRAVEL

Travel by Air

Following shall be the entitlement on airline class for international travel as per grade of employee:

Grade International

P&CEO First (for over 4 hours travel time)

Management Team Business

SEVP Business

EVP Economy

SVP & VP Economy

RVP & Below Economy

Bank Provided Accommodation

Grade International

P&CEO 5 Star (standard room)

SEVP 5 Star (standard room)

EVP 4 Star (standard room)

SVP & VP 3 or as suitable (standard room)

RVP & Below As suitable (standard room)



Own Accommodation

Grade Entitlement

EVP & above At actual

SVP US$220/-

VPs & RVPs US$190

AVPs to OGIII US$160

Daily / per diem allowance when Bank Arranged Accommodation

Grade International

P&CEO Actual Bills

SEVP Actual Bills

EVP US$ 75

SVPs US$ 50

VPs & RVPs US$ 40

AVPs to OG III US$ 25

The per diem allowance would be provided to meet expenses on meals, laundry, personal calls, however, taxi charges / visa / airport charges will be reimbursed as per actual.

GENERAL RULES

The travel policy applies to all full-time employees of the Bank for undertaking travel on official business.

All employees are required to obtain prior approval for traveling on official visits both within and outside Pakistan. A Travel Authorization Form must be completed for obtaining approval for travel purposes.

Type of travel Approval authority

International P&CEO

Domestic Functional Heads

All travel related expenses pertaining to Employee Training (travel and accommodation cost of trainers, management trainees etc.), to be approved by Head HR.

All foreign travel shall be undertaken in consultation with and prior approval of P&CEO. In the absence of P&CEO, the Functional Head and Head HR shall approve.



The Bank shall not bear the travel expenses for families accompanying employees traveling on official duty.

Where an employee travels above entitlement, the employee shall bear the additional cost of up-gradation.

Entertainment Expense: during business travel, reimbursement of entertainment expenses pertaining to Bank business should be duly supported by receipts.



RELOCATION POLICY

SECTION ‘L’

Chapter Contents:

One-time relocation allowance

Rental subsidy Freight and moving

charges School admission

fee allowance



Section L: RELOCATION POLICY - DOMESTIC

Employees can be transferred to any branch or office within Pakistan and Azad Jammu and Kashmir at the management’s discretion for business reasons.

Approvals in case of transfer:

Grades Approval of TransfersApproval of Relocation Allowance

EVP & Above P&CEOHead Human Resources with the concurrence of P&CEO

SVP & belowFunctional Head & Human Resources

Head, Human Resources

Travel Entitlement (one way): for all inter-city transfers, Bank facilitates the transfer of employee from home base to another by providing Air / Train / Road travel entitlements as per the Travel Policy.

The employee’s dependents (self, spouse and children) during transfer will use the same mode of transportation as the employee.

The employee will arrange own rental accommodation and may be facilitated by General Services Department and legal department for execution of lease agreement and negotiation of rent. Legal counsel must ensure vetting of all related documents.

The payment shall be made direct to the land lord through pay order by the Bank.

Copy of tenancy agreement duly signed by the land lord and the employee will be submitted to HR for records.

Local transport expenses up to 15 days from the date of arrival at the new location may be reimbursed by the Bank if a pool car is not made available as per entitlement.

In case of promotion during one tenancy agreement the next rental limit will not be available automatically.

The relocation rentals may be provided up to a maximum period of 18 months.

In case an employee leaves the service of the Bank before 18 months period has expired, the employee will be required to pay the Bank the balance rental paid.

An employee who is transferred as a result of a personal request shall not be entitled to any transfer related expenses.



ONE-TIME TRANSFER ASSISTANCE

For employees who are transferred from one station to another having a minimum distance of 100 km between the two locations and involving change of residence, a transfer assistance will be allowed. The purpose of this assistance is to meet incidentals related to relocation.

This is a one-off payment.

Entitlement of transfer assistance:

Grades For KHI / LHR / ISB - RWP Other Cities

EVP and above PKR 300,000/-SEVP – Not applicableEVP - PKR 150,000/-

SVP PKR 150,000/- PKR 75,000/-

VP & RVP PKR 75,000/- PKR 37,500/-

AVP and below PKR 30,000/- PKR 15,000/-

RENTAL SUBSIDY

To facilitate employees who are being transferred, the Bank shall provide the following rental subsidy for 18 months from the date of transfer:

Grades Per month rental subsidy

EVP and SVP PKR 75,000/-

VPs PKR 50,000/-

RVPs PKR 35,000/-

AVPs PKR 25,000/-

OG III to OG I PKR 20,000/-

Notes:

Subsequent to transfer, 15 calendar days hotel / guest house stay will be allowed for the employee to enable him/her to relocate in to a suitable accommodation.

The Head HR is empowered to approve all such stays beyond 15 calendar days subject to extenuating circumstances.



FREIGHT AND MOVING CHARGES

The Bank will reimburse moving charges and insurance on the production of actual bills. A list of approved packers should be used for arranging transportation of goods.

Grades Entitlement

EVP & above Actual or 40 ft container whichever is less

SVP and below Actual or 20 ft container whichever is less

The Bank will pay transportation charges for staff own car (1) as well as the Bank provided car(s).

In order to claim these expenses, at least three quotations are required from approved Packers / Shippers and cost of Insurance from an approved Insurance Company etc.

SCHOOL ADMISSION FEE ALLOWANCE

To facilitate schooling of children, the Bank allows one time reimbursement of admission fee for two children, payable at the time of transfer upon production of actual bills. The following gridwill apply:

Grades Entitlement per child

SVP & above PKR 75,000/-

VP PKR 50,000/-

RVP PKR 30,000/-

AVP and below PKR 25,000/-

Any amount paid as security deposit (being refundable) shall not be reimbursed by the Bank.

Note: an employee will not be allowed any of the above transfer facilities if transfer request is generated by the employee himself / herself and no travel allowance will be paid to the employee.



CODE OF CONDUCT

SECTION ‘M’

Chapter Contents:

Code of conduct Code of conduct for sales

staff Gifts Initiation of communication

with regulators Marketing research

communication and complaints

Media and advertising CAAML Policy Insider dealing Trading & transactions Client confidentiality &

conflict of interest Whistle blowing Donation policy Corporate social

responsibility (CSR) policy



Section M: CODE OF CONDUCT

CODE OF CONDUCT

INTRODUCTION

Faysal Bank’s reputation is a priceless asset that each of us is responsible for maintaining. Our reputation not only affects whether or not someone will be our customer; it also determines whether we are proud to be associated with this organization — how we feel about coming to work.

The Code of Conduct is designed to guide the personal business ethics of all of us. It applies to every employee of Faysal Bank Limited and each of its subsidiaries. In addition, other persons performing services for the Company may be subject to the Code by contract or agreement. You are expected to read this document promptly uponreceiving it. You also are expected to read and understand the Company policies that relate to sections of this Code.

Individual business units or staff groups may issue additional policies that provide morespecific guidance about certain practices related to those particular businesses. You should speak with your leader for more information about any additional policies that may pertain to you.

In addition to the ethical guidelines included in the Code, You must comply with therequirements of all applicable laws and regulations. This is mandatory for everyone and is not subject to business priorities or individual discretion.

Adherence to the Bank’s Code of Conduct is a condition of employment. All employees are required to comply with the Code, and no waivers from its coverage may be granted.

BUSINESS ETHICS AND COMPLIANCE WITH LAW

You are expected to protect and enhance the assets and reputation of Faysal Bank Limited.

Our business is based on a strong tradition of trust. It is the reason our customers cometo us. Honesty and integrity are cornerstones of ethical behaviour. Trustworthiness and dependability are essential to lasting relationships. Our continued success depends ondoing what we promise — promptly, competently and fairly.

In our rapidly evolving businesses, each of us is challenged by a complex environment,this often requires fast responses under pressure. No written policy can definitively set forth the appropriate action for all business situations. Accordingly, rather than a set of specific rules, this Code emphasizes a standard of ethical conduct that must permeate all of our business dealings and relationships. Individual businesses may issue additional policies that provide more specific guidance about certain practices related to that business. You should



speak with your leader for more information about any of those policies that pertain to you. You also should pay careful attention to compliance training programs to help you apply the Code in your daily activities.

The Code of Conduct provides guidelines for a variety of business situations. It does not try to anticipate every ethical dilemma you may face. Faysal Bank, therefore, relies on your good judgment.

You must conduct business in accordance with applicable laws and regulations and the Code.

You should consult the Legal Counsel whenever you have a question about the legality of a course of action. You must also exercise the utmost care to ensure that all statements you make, especially those made to the government bodies that regulate our businesses (or with which we do business), are accurate. If you are in doubt about any situation or behaviour, you should speak to your leader, Compliance or your Human Resources representative.

Leaders, by virtue of their positions of authority, must be ethical role models for all employees.

An important part of a leader’s responsibility is to exhibit the highest standards of integrity in all dealings with fellow employees, customers, suppliers and the community at large. An equally important responsibility is to obtain employees’ commitment and develop their ability to make sound ethical judgments. Leaders must communicate the seriousness of the Bank’s expectations for ethical conduct and their own personal support of these expectations. Ethical leadership includes both fostering a work environment that encourages employees to voice concerns or otherwise seek assistance if faced with potentially compromising situations, and supporting those who speak out. Leaders must be alert to any situations and/or actions that may be unethical or potentially damaging to the Company’s reputation and to respond appropriately. Leaders must avoid giving even implicit approval of such situations and actions. For example, leaders must ensure that financial reports and product and service claims are honest and complete.

TREATMENT OF EMPLOYEES AND OTHERS

You are expected to treat colleagues, employees and others with whom youinteract with respect and dignity.

Treating all employees with respect and dignity is a FBL Value that applies to everyone. This is particularly important for leaders who influence the work environment of their areas on a daily basis. Leaders must remember that they are role models for their employees and that these employees are likely to treat their colleagues, including employees whom they manage and others, as they themselves are treated.The Company expects leaders to seek out the ideas of subordinates and to involve them in decisions whenever appropriate. At the same time, once a decision is made, everyone involved is expected to pull together and support it.

In addition, you must respect and maintain the confidentiality of information you learnabout your employees and colleagues (e.g., salaries, performance reviews, disabilities or leaves of absence). You must not share this information with anyone either inside oroutside your department, except as is necessary to perform your job.



RELATIONS WITH REGULATORS

All communications with regulators must be handled through the appropriate department/Function. Where communication with the regulator is part of an employee’s job description (e.g. dealing with the regulators for filing regular financial returns which is the responsibility of the respective department sending the regular returns), in these cases, Compliance is only involved if there is a potential breach of regulations. Guidelines of SBP issued in this regard shall be strictly followed. A copy of all non-routine correspondence with the regulators must be provided to the Compliance Function.

Meetings with Regulators

Any visits to regulators by employees or Senior Management must be notified to and if required may be coordinated by the Compliance Function.

Reporting to Regulators

Information provided to regulators by FBL must: -

a) Be accurate;

b) Not omit any information that might result in the information provided being misleading;

c) Be provided only after all reasonable enquiries are made to ascertain the accuracy and completeness of the information;

d) Be reviewed by a Head of the Department/Function.

Inspection by Regulators

Regulators may inspect FBL to enable regulators to inspect its activities, FBL must maintain all records in a form capable of being checked or audited. Employees must ensure that they do not amend, destroy, erase or make further entries to any record or file which is, or may be, relevant to a matter being inspected or investigated by a regulator or to any disciplinary process or appeal process. Employees must co-operate with any inspection carried out by the regulator to the fullest possible degree. Compliance may co-ordinate inspections but employees must:

a) Make them readily available to the inspection team;

b) On receipt of a proper request by the regulator, produce to the inspection team any documents, files and computer data and other material in their possession or control;

c) Give the inspection team access, at all times, to FBL’s premises and reasonable facilities;

d) To the extent that they are properly requested by the regulator, permit the inspection team to copy any documents or other material in FBL’s premises or elsewhere at FBL’s expense and to remove copies and hold them elsewhere; and

e) Answer truthfully and fully all questions put to them by the inspection team. Failure to comply with a request by regulators to produce records and documents, give regulators access to the premises, staff or records of FBL for the purposes of supervision or inspection or to provide information relating to a transaction is an offence for which FBL and senior management may be punished by fine or imprisonment. Directors, officers or employees of



FBL must comply with any fines, prohibitions, requirements, sanctions, penalties, orders and decisions of any regulator.

RELATIONS WITH CUSTOMERS

Employees must ensure that all communications are clear, fair and not misleading. FBL must manage conflicts of interests appropriately and ensure fair treatment of all affected clients.

Employees must not unfairly or unreasonably place the interests of FBL above those of a client. Employees must ensure they are aware of each client’s current financial situation and other relevant facts about the client appropriate to the services provided to or requested by the client. If FBL has control of client assets it must ensure those assets are properly accounted for and safeguarded in accordance with regulatory, contractual or fiduciary responsibilities.

Every employee shall not divulge any information relating to the affairs of its customers except in circumstances in which it is, in accordance with law, practice and usage customary among bankers, necessary or appropriate to divulge such information.

KNOW YOUR CUSTOMER & MONEY LAUNDERING

Every client must be owned by a relationship officer of the Business line. Such relationship officer will be responsible for the client’s KYC, due diligence and ensuring that FBL is safeguarded against criminal activities like money laundering, terrorist financing and drug trafficking etc in this regard.

We must ensure that we have sufficient information about our customers to satisfy ourselves as to their reputation and standing and the nature of their business activities.

Money laundering is the process by which Bank’s are used as vehicles to disguise or “launder” the proceeds of criminal activity. Such activities undermine a Bank’s integrity, damage its reputation deter honest customers and expose a Bank to server sanctions. Faysal Bank fully supports the international drive against serious crime and is committed to assisting the authorities in preventing money laundering.

Faysal Bank’s success on this front is dependent upon the co-operation of all employees and employee. Everyone must exercise prudence and vigilance when assessing potential new clients, handling client requests and processing client transactions. With everyone’s commitment and determination, it is possible to translate the spirit of FBL’s core values and business principles into daily practice, continue to protect the integrity of the banking system, and maintain the Bank’s reputation as a respectable and trustworthy institution.

Accordingly, the following precautionary steps are to be adopted in this connection:

The identity of every new customer with whom we deal must be established from reliable identifying documents.

If you suspect that funds stem from illegal activities, this must be reported internally to your next Reporting supervisor or Compliance who will liaise with competent authorities.

Customers should not be warned when information relating to them is being reported.



Detailed requirements on Bank’s due diligence policy and procedures are to be followed as given in the Compliance Manual.

INSIDER TRADING

Insider trading involves the improper use of unpublished price sensitive information for personal benefit when dealing in securities.

According to Sections 15A and 15B of Securities and Exchange Ordinance 1969, employees and other persons who have privileged price information about a company during the preceding six months should not deal in securities of the company. Those found guilty of contravening the provisions of the Ordinance can be awarded punishment up to three years and obliged to pay fine as well as compensation to any person who may have suffered on account of such insider trading.

SPECULATIVE DEALING

Personal dealing in speculative transactions can entail employees with risks to their financial standing, can distract them from the performance of their duties and can Impact on the reputation of the Bank. For these reasons, employees should not engage in speculative transactions for their personal account.

Accordingly no employee shall:

Borrow money from or in any way place himself under pecuniary obligation to a broker or money lender or any firm or persons having dealings with the Bank.

Buy or sell stocks, shares, commodities, foreign exchange or securities of any description without funds to meet the full cost thereof.

Lend money in his private capacity to a constituent of the Bank or have personal dealings with a constituent for the purpose of sale of bill of exchange, Government paper or any other securities.

In this connection employees are advised to note that borrowing money from any source of placing themselves under pecuniary obligations beyond the capacity to repay or honor the commitment will tantamount to speculative activity.

If employees are unclear whether any particular transaction / activity could be considered speculative they should seek guidance from their Executive Officer or Compliance.

CONFLICT OF INTEREST

You must be alert to any situation that could compromise the position of trust you hold as a Faysal Bank employee, and avoid any kind of conflict between your personal interests and those of Faysal Bank.

You may engage in outside activities that do not conflict with the interests of the Bank, interfere with the responsibilities of its employees, or damage or misuse the reputation, trademarks, relationships, confidential information or other property of the Bank. The Bank has adopted the



following guidelines to protect both the Bank and employees against conflicts of interest, and from situations that create a perception of impropriety.

From time to time, situations will arise that are not clear-cut. If you are uncertain about the propriety of your conduct or business relationships, consult your supervisor, Legal or Compliance. You should never use your position with the Bank, or information acquired during your employment, in a manner that may create a conflict — or the appearance of a conflict —between your personal interests and the interests of the Bank or its customers and clients. You also should be aware that actual or potential conflicts of interest can arise not just from dealings with external parties, such as customers or suppliers, but also from relationships or transactions with leaders, subordinates or other employees. If a conflict or potential conflict arises, you must report it immediately to your leader or the Compliance function, who will review and any such discussion will be held in confidence to the extent possible and in a spirit of cooperation. Employees must ensure that their personal interests do not conflict with the duties which are owed to the Bank or which the Bank owes to its customers. This includes engaging in any of the following activities without the prior written approval of the Management.

Becoming personally involved in any transaction of the Bank / Group.

Negotiating or contracting on behalf of the Bank with an entity in which you or a relative has an interest.

Accepting any employment (whether part time, temporary or other), consultancy, directorship or partnership outside the Bank.

If you are in doubt about whether a certain circumstance might create a conflict of interest you may consult the Compliance for guidance before taking action.

PERSONAL INVESTMENT POLICY

This policy covers Members of Investment Committee and Members of Investment Staff (Back Office) who are required to disclose their personal investments in Stocks and shares and other securities.

Accordingly a staff member in the above category is required to obtain prior permission in writing from the Chief Executive for personal investments making sure that there is no case of conflict of interest. A copy should also be forwarded to Compliance.

In case prior approval could not be obtained for any reason investments made should be reported to Compliance as and when investment is made.

EXTERNAL FUNCTIONS

You may not simultaneously work for any concern that does business with or competes with the Bank without the approval of the Head HR.

You must disclose the following outside positions to the HR, who will determine if a conflict exists:A member of your immediate family or household works for, and holds a position that can influence decisions at, a firm that directly competes with or does business with the Company.



A member of your immediate family or household holds a position that interacts with positions of authority at a firm that directly competes with or does business with the Company.Further, you may not serve as a director, trustee, officer or similar position (paid or otherwise) of any business, other than with the Bank or one of its subsidiaries, without prior approval of the HR. This rule does not apply to charitable, civic, religious, educational, public or social organizations, or to residential boards whose activities do not conflict with the interests of the Bank and do not impose excessive demands on your time.

BOOKS AND RECORDS

ACCURACY AND COMPLETENESSYou must ensure that the accounting and financial records of the Bank meet the highest standards of accuracy and completeness.

Reporting accurate, complete and understandable information about the Bank’s business, earnings and financial condition is an essential responsibility of all employees. It is not the exclusive responsibility of the Bank’s accounting personnel to ensure that the Bank’s accounting and financial records are accurate and complete. If you have reason to believe that any of the Bank’s books and records are not being maintained in an accurate or complete manner, you are expected to report this immediately to your leader, the Chief Financial Officer, Compliance or the HR. Similarly, the Bank relies on you to speak up if you feel that you are being pressured to prepare or destroy documents in violation of Bank policy. You also should speak up if you become aware that any misleading, incomplete or false statement has been made to an accountant, auditor, attorney or government official in connection with any audit, examination or filing with a government agency, such as the State Bank of Pakistan or Securities and Exchange Commission.

PROTECTION AND PROPER USE OF BANK’S PROPERTY

As Faysal Bank’s employee, you are entrusted with protecting the Bank’s property.

Acts of dishonesty against the Bank or its customers involving theft, destruction or misappropriation of money, property, office equipment, supplies or any other items of value, are, of course, prohibited. Falsification, alteration or substitution of records for the purpose of concealing or aiding such acts is also prohibited. If you suspect someone has committed such an act or you witness such an act, you should report it immediately to Security. If you prefer, you can speak informally and confidentially with Compliance. You also must protect the use of the Bank’s computer equipment, including Internet access. You should follow the Bank’s procedures in connection with the disposition of personal computers, personal digital assistants, mobile phones or other Bank assets.

GIFTS AND ENTERTAINMENT

It is the policy of the Bank that gifts are not to be accepted from customers or suppliers and potential donors must be diplomatically informed of this.

ExceptionsIn cases where refusal of a gift would be regarded as an affront or it would be impractical or impossible to return the gift then in certain cases it can be accepted provided the gift is:

Not in the form of cash,



Clearly not in return for any consideration or in the anticipation of such,

Of nominal value only.

Any departure or proposed departure from the above must be reported through the line to the Compliance Function for a ruling on acceptance.

Personal Gifts by Employees

Personal friendships developed on the basis of banking relationships can sometimes encourage the exchange of gifts for personal account. Care must be taken in this regard as it must be realized that, unfortunately, what may be offered simply as a token of friendship and goodwill, may be construed, in some circumstances, as not only a breach of ethics but even a criminal action.

Presenting Gifts

Gifts may be given for promotional purposes or on special occasions where it may be appropriate while remaining within the jurisdiction of FBL management. The context in which such gifts are given is important and care must be exercised to avoid any such event that could be misinterpreted or construed as bribery or corruption.

CONFIDENTIAL INFORMATION AND TRADE SECRETS

You must protect confidential information and trade secrets, and prevent such information from being improperly disclosed to others inside or outside the Bank.

You may learn, to a greater or lesser degree, facts about the Bank’s business, plans, operations or “secrets of success” that are not known to the general public or to competitors. Sensitive information such as customer lists, the terms or fees offered to particular customers, marketing or strategic plans, or proprietary or product systems developments are examples of the Bank’s confidential information and trade secrets. Similarly, during the course of performing your responsibilities, you may obtain information concerning possible transactions with other companies or receive confidential information about other companies. You may not disclose any confidential information or trade secret of the Bank to others or use any such information for your own or someone else’s benefit. Within the Bank, confidential information and trade secrets should be divulged only to other employees who need the information to carry out their business responsibilities. You also are responsible for maintaining the confidentiality of sensitive employee information, such as salary, bonus or performance appraisal data. These obligations apply both during and subsequent to your employment with the Bank. You must be careful not to discuss such matters with family members, business or social acquaintances, or in places where you can be overheard, such as taxis, elevators, the Bank cafeteria or restaurants. In addition, you should not communicate or transmit confidential or sensitive information through external online communications services, such as the Internet.

BREACHES & DISCIPLINARY ACTION

In the event of an employee committing breach of this Code or any of the provisions of Employment Rules or contravenes instructions / orders issued to him / her in connection with official work or who displays negligence, inefficiency, indolence or criminal (riotous) behaviour or does anything detrimental to the interests of the Bank or is guilty of any other act of fraud,



misconduct or insubordination, the competent Authority, in its sole discretion and without limitation may impose on him / her one or more of the following penalties:

Reprimand.

Postponement or stoppage of increment or promotion.

Forfeiture of pay for any period of un-authorized absence from duty.

Recovery from pay of the whole or part of any pecuniary loss caused to Bank by the employee.

Demotion to a lower stage of pay in his / her Grade or to a lower Grade.

Call upon an employee to resign from service with or without notice period.

Dismissal from service, which will involve permanent disqualification for future employment in the Bank without notice period.



CODE OF CONDUCT FOR SALES STAFF

In addition to the above, full-time sales staff will also sign-off the appended code of conduct:

Representation of qualification

You shall not knowingly misrepresent your qualifications, capacity, experience and abilities or delegate assigned tasks to unqualified persons who have not signed the code of conduct.

Timings

Office timings to be strictly followed.Lunch time allotted is for 1 hour.

Smoking

Smoking is prohibited in the office and at customer’s premises

Neatness and Cleanliness

It is your duty to keep your premises & surroundings neat and clean.

Appropriate use of Bank Information

During your employment tenure or even after your employment terminates, you must never disclose or request disclosure of proprietary or confidential information about the Bank or the customer to anyone.

Spirit of team work

In order to be a team player you should inculcate the qualities of humanity, patience and cooperation, and be willing to share the credit for good work as well as responsibility for mistakes.

Harassment

You should not behave towards others in a manner that may reasonably be perceived as intimidating or overbearing.

Professionalism

In dealing with customers, staff should be professional, honest, and forthright and provide information promptly, in an appropriate manner. The information must be clear, accurate and complete.

Integrity

Integrity means to be truthful in all endeavors, to say what you mean and to deliver what you promise.



(a) Accuracy of Company Records and Reporting.

The records, data and information owned, used and managed by the Bank must be accurate and truthful based on facts.

(b) Referral of actual and Potential Infractions.

If you suspect a possible violation of a law, regulation, or ethical standards or if you believe you are being asked to do something as an employee that is improper or illegal, promptly refer the suspected violation to your Supervisor or to any appropriate authority.

(c) Avoiding conflicts of interest.

You should avoid conflicts between your private interests and Bank responsibilities and should avoid situations where there is reasonable basis for the perception of such a conflict.

Call making etiquettes

Telephone contacts may be made either at customer residence, place of business or both.

Identify yourself and the Bank;

State reason for the call;

Always offer to call back, if the connected call is not clear, either to you or the other person;

To the extent possible, talk in the language which is most comfortable to the customer.

Keep the conversation limited to business matters & be respectful at all times.

In the event the customer is not available, a message may be left for the customer. The aim of the message should be to establish contact with the customer.

Privacy

You should always respect customer’s privacy while visiting / calling the customer (home / work place).

Contacting timings

Telephonic or physical contact must be kept at reasonable hours, which is between 9:00 AM and 8:00 PM Monday to Saturday or as per customer’s request. Sundays & public holidays’ calling should be avoided.

External activities and Public Comment

Any external activity should not be undertaken during the working hours or, at the expense of Bank duties and commitments.

Where a Bank staff member comments publicly in connection with a political party or interest group activities, it should be made clear that such comments are made on behalf of that



particular association which they represent and not in their capacity as associated staff of the Bank.

Information provided to the customer

You should not mislead the customers about your organization’s name, or falsely represent yourself or make any false/unauthorized commitment on behalf of the Bank for any facility /service. Always respect the Bank’s privacy.

Economy and Efficiency

You have a responsibility to ensure that Bank resources are managed effectively and without harm to the community or environment.

(a)Use of property and resources for Bank purposes.

Material, Financial and computerized resources should be used only for the legitimate Bank purposes for which they are provided.

Electronic mails and access to internet and computerized resources are provided to you to support your employment activities and should be used for this purpose.

You should not remove Bank equipment from the Bank except where this is necessary for use for Bank purposes and where you have appropriate permission. You may occasionally need to use Bank resources. For instance, to make a telephone call for private purposes, or to use a computerized system such as the internet to enhance your skills in respect of these technologies. You should be sensitive that in doing so you are using Bank resources and should endeavor to ensure that such use is kept to the minimum.

(b) Avoidance of waste and security of Bank property and facilities

Bank resources should be used economically and waste avoided. Equipment, materials and Bank facilities should be treated with appropriate care and secured against theft or misuse.

Work areas, conference rooms should be secured when unoccupied. Ensure that business related paper work documents produced, copies, faxes, filed, stored, and discarded by means designed to minimize the risk that unauthorized persons might obtain access to proprietary or confidential information.

Sensitive matters or confidential information should not be discussed in general places such as elevators, cafeterias etc.

Offer of Gift or Bribes

You shall explicitly refuse any offer from an applicant. (bribe or a gift) given for any consideration in return.

All such instances should be reported to the respective supervisor immediately or on the following business day in case of a weekend or a public holiday.



Precaution during visits or contacts

You should always carry your business cards & Company ID at all times.

Respect personal space – maintain adequate distance from the Customer

Do not enter or insist on seeing applicant’s private residence from the inside, instead stay within the public or open area of the residence.

Never visit in large numbers or groups.

Respect applicant’s privacy & that of his/her family.

If the applicant is not present and only family members/office persons are present at the time of the visit, you should be extra cautious in asking questions. You should end the visit with request for the customer to call back & leave your visiting card with the person met.

Provide telephone number, supervisor’s name or concerned Bank officer’s contact details, if asked by the applicant.

Limit discussions with the applicant to the business – Maintain a professional distance / decorum.

Always update visit records maintained by the Bank after making visits to the residence or the business place of the customer.

Appearance and Dress Code

You must always be appropriately dressed ;

For men: Shirt with a tie, pants and polished shoes. For women: Culturally appropriate formal / decent attire. Well-groomed appearance with no excessive jewelry or expensive ornaments.

Jeans and/or T-shirt, open sandals and sneakers are not considered appropriate for men or women.

Performance of duties

It must be ensured that you perform your duties professionally reflecting integrity and efficiency.



GIFTS

Receipt of Gifts

It is the policy of the Bank that gifts are not to be accepted from customers or suppliers and potential donors must be diplomatically informed of this.

ExceptionsIn cases where refusal of a gift would be regarded as an affront or it would be impractical or impossible to return the gift then in certain cases it can be accepted provided the gift is:

Not in the form of cash,

Clearly not in return for any consideration or in the anticipation of such,

Of nominal value only.

Any departure or proposed departure from the above must be reported through the line to the Compliance Function for a ruling on acceptance.

Personal Gifts by Employees

Personal friendships developed on the basis of banking relationships can sometimes encourage the exchange of gifts for personal account.

Care must be taken in this regard as it must be realized that, unfortunately, what may be offered simply as a token of friendship and goodwill, may be construed, in some circumstances, as not only a breach of ethics but even a criminal action.

Presenting Gifts

Gifts may be given for promotional purposes or on special occasions where it may be appropriate while remaining within the jurisdiction of FBL management. The context in which such gifts are given is important and care must be exercised to avoid any such event that could be misinterpreted or construed as bribery or corruption.

Political Contributions and Charitable Donations

Political contributions are strictly not allowed. For Charitable donations, refer to FBL’s Donation Policy.



INITIATION OF COMMUNICATION WITH REGULATORS

Communications with Regulators

All communications with regulators must be handled through the appropriate department/Function. Where communication with the regulator is part of an employee’s job description (e.g. dealing with the regulators for filing regular financial returns which is the responsibility of the respective department sending the regular returns), in these cases, Compliance is only involved if there is a potential breach of regulations. As per guidelines of SBP issued vide BPD Circular No.32 dated November 16, 2002 wherein it was advised that all references seeking clarification on SBP instructions should be forwarded by at-least Departmental/Business/Group Head. Further as per BPD Circular Letter No. 04 of 2005 all references, clarifications, correspondence addressed to SBP, except routine and prescribed statements/returns/information, shall be signed at least at the level of Departmental/Business/Group Head. A copy of all non-routine correspondence with the regulators must be provided to the Compliance Function.

Meetings with Regulators

Any visits to regulators by employees or Senior Management must be notified to and if required may be coordinated by the Compliance Function.

Reporting to Regulators

Information provided to regulators by FBL must: -

Be accurate;

Not omit any information that might result in the information provided being misleading;

Be provided only after all reasonable enquiries are made to ascertain the accuracy and completeness of the information;

Be reviewed by a Head of the Department/Function.

Regulatory Inspections

Inspection by Regulators

Regulators may inspect FBL to enable regulators to inspect its activities, FBL must maintain all records in a form capable of being checked or audited. Employees must ensure that they do not amend, destroy, erase or make further entries to any record or file which is, or may be, relevant to a matter being inspected or investigated by a regulator or to any disciplinary process or appeal process. Employees must co-operate with any inspection carried out by the regulator to the fullest possible degree. Compliance may co-ordinate inspections but employees must:

Make them readily available to the inspection team;

On receipt of a proper request by the regulator, produce to the inspection team any documents, files and computer data and other material in their possession or control;

Give the inspection team access, at all times, to FBL’s premises and reasonable facilities;



To the extent that they are properly requested by the regulator, permit the inspection team to copy any documents or other material in FBL’s premises or elsewhere at FBL’s expense and to remove copies and hold them elsewhere; and

Answer truthfully and fully all questions put to them by the inspection team. Failure to comply with a request by regulators to produce records and documents, give regulators access to the premises, staff or records of FBL for the purposes of supervision or inspection or to provide information relating to a transaction is an offence for which FBL and senior management may be punished by fine or imprisonment. Directors, officers or employees of FBL must comply with any fines, prohibitions, requirements, sanctions, penalties, orders and decisions of any regulator.

Other References:• Banking Companies Ordinance 1962• Code of Conduct policy and Employee Handbook• SBP Circulars



MARKETING RESEARCH COMMUNICATION AND COMPLAINTS

Communication with Clients and Prospects

This Chapter applies to clients and prospective clients (“clients”). Faysal Bank requires that all communications with clients must be fair clear and not misleading.

False and Misleading Statements

It is an offence in many jurisdictions to a person to induce or attempt to induce another person to deal in securities by:

Making or publishing any statement, promise or forecast that he knows or ought reasonably to have known is misleading, false or deceptive;

Dishonestly concealing material facts; or

Recklessly making or publishing any statement, promise or forecast that is misleading, false or deceptive. The offence can be punishable by fine or imprisonment. In addition making false or misleading statements either fraudulently or negligently increases the risk of FBL being sued by clients.

Verification and Accuracy of Communications

Employees must have a reasonable basis for statements made in communications to clients and language used must be accurate clear and appropriate. Employees should exercise professional judgment with respect to the appropriateness of each statement made or the probity of its omission. Statements that contain unwarranted superlatives should be avoided. Information provided to clients must not omit any information that might result in the information provided being misleading. Translations of any materials must be accurate.

Business Communications

All business communication from Faysal Bank must be on the Bank’s official headed writing paper and state the originator’s name & designation or some other reference to identify him.

Correspondence relating to FBL business may not be issued by any employee on personal or unheeded paper.

Provision of Corporate Information

FBL is under a regulatory obligation to provide clients with adequate and appropriate information about its business and its employees. Employees may provide members of the public the following information upon request:-

The full name of the company and its affiliates;

The address, phone and fax numbers of the Pakistan or any other office;

The name, position and contact details of the employee with whom a person is dealing;



The names of its directors or employees, including information about whether they are registered with regulators; and

Information about FBL or its affiliates’ registrations with regulators.

In addition, clients may be provided with the following information:

The financial position of FBL by providing a copy of the latest annual report for the Ithamar Bank; and

General information about the history and operations of Faysal Bank as is set out in corporate marketing materials.

This can be provided by way of business card, corporate, marketing or advertising brochures or written or verbal communication. Employees who act for more than one company in FBL should ensure that the member of the public or client with whom they are dealing is not confused as to which legal entity the employee is representing.

Disclaimers

Appropriate disclaimers and legends must be attached to documentation sent internally and externally. Legal must approve all disclaimers. All emails and faxes must contain a disclaimer a standard email disclaimer is auto-attached to messages generated from the FBL network. As the auto-attach feature does not cover emails created on non-FBL computers or private email addresses, employees should avoid sending messages from such machines or addresses unless absolutely necessary. If an employee must send a message from a private machine or email address, he or she should clearly state that the message is being sent from a private address or computer on behalf of FBL and the appropriate disclaimer should be attached. Please contact Legal for the appropriate wording.



MEDIA AND ADVERTISING

Contacts with the Press OR Electronic Media

Queries from members of the press must be referred to Corporate Communications. All contact with the press or electronic media must approve and made by P&CEO and/or his designated media spokesperson. Employees may not, without specific approval from these individuals provide information (background or otherwise) either on an attributed or non-attributed basis to the press or electronic media in relation to any matter including the business of FBL, its clients (or their business) or any companies covered by research.

Guidelines for Production of Marketing Materials

General Guidelines

The following general guidelines apply when any marketing publication or advertisement of either a corporate or product nature is produced. This section also applies to any materials that are released via a website. FBL must believe that any information contained in marketing material is true and fair and be presented in a clear and effective manner. FBL must ensure that the information contained in marketing materials does not have any misleading or potentially misleading effect. FBL must not dishonestly conceal or withhold material facts or include information that is false in any material way. FBL must ensure that all marketing materials are dated and are kept up to date, if necessary by way of reprint, during such period as they are used.

Due Diligence Review Procedures

Prior to the issue of any marketing materials a due diligence review should be completed to ensure that statements made in the documentation are reasonable and can be supported. There must be no misrepresentations and no material information is omitted.

Advertising

Additionally, all advertisements promoting FBL’s financial services or products must be reviewed and approved by Compliance & Legal Advisor before publication.

Compliance will advise if any specific risk warnings must be placed in the advertisement. Compliance will obtain regulatory approval if necessary. This rule applies to newspaper and magazine advertisements, internet and promotional material, marketing brochures, presentations, videos, offers and/or solicitations promoting FBL’s products and financial services whether produced for general distribution to clients or prospective clients. Any use of FBL’s name and logo by third parties requires the express approval of Corporate Communications.



Copyright

Faysal Bank Copyright

All original documents of any sort (including slides, presentations, the website, brochures and marketing and promotional material) produced by Faysal Bank Limited should be noted as being Faysal Bank copyright. Legal can advise the exact wording which should be adopted.

Third Party Copyright

At a minimum where Faysal Bank Limited uses information from other sources it must reference that source. Certain information may be subject to copyright or licensing restrictions which prevent the reproduction, distribution or use of the information unless the necessary permissions or licenses have been obtained and the fees paid. Legal should be consulted about the use of information form third party sources.

Ownership of Work

Employees should be aware that their work remains the property of Faysal Bank Limited and that copyright in them remains, at law, with the employer. Leaving Bank’s employment, (either by way of termination or resignation) does not entitle employees to take with them hard or soft copies of their work which remains the property of FBL.

In addition, employees should note that any attempt to take such information (whether by photocopying, downloading to disk or emailing to an outside email address) may amount to theft. FBL will demand the return of any information taken by employees that it has not specifically authorized and will not hesitate to bring the matter to the attention of both regulatory authorities and the police where necessary.



CLIENT ACCEPTANCE AND ANTI MONEY LAUNDERING (CAAML) POLICY

Faysal Bank is required to have written KYC & Anti -Money Laundering procedures. It is important for the reputation of FBL that it conducts business with acceptable clients and has adequate policies and procedures to deter criminal activities. Faysal Bank’s Client Acceptance and Anti Money Laundering Policy (CAAML) ensures that attention is paid to determining if Faysal Bank wants to do business with a client and that Faysal Bank’s clients are of good reputation.

What is Money Laundering?

Money laundering covers a wide range of activities intended to alter the identity of the source of illegally obtained money to create the appearance that it originates from a legitimate source. Cash being a bearer instrument and completely fungible lends anonymity to a variety of criminal activities and is the preferred medium of exchange in the criminal world. This gives rise to a need for criminals to:

Conceal the true ownership and origin of the money; Maintain control over the money; and Alter the form of the money to mask its origins.

There are three common stages in the laundering of money: -

Placement – the physical disposal of cash proceeds derived from illegal activities:

Layering – separating illicit proceeds from their source by creating complex layers of financial transactions designed to disguise the source of the money, subvert the audit trail and provide anonymity; and

Integration – creating the impression of apparent legitimacy to criminally derived wealth. In situations where the layering process succeeds, integration schemes effectively return the laundered proceeds back into the general financial system and the proceeds appear to be the result of or connected to legitimate business activities.

Anti Money Laundering Safeguards

Training

Faysal Bank is required to:

Ensure that the applicable statutory and regulatory rules are available to and understood by employees; and

Develop employees’ awareness and vigilance for KYC to guard FBL against money laundering and terrorist financing;

For this reason and as staff responsible for contacting clients or handling transactions are the best defense against financial crime, HR in consultations with Compliance should develop and implement a training plan in relation to CAAML for the employees.



For all new joiners HR must ensure that the staff goes through CAAML & Compliance Principles Training with in the probation period.

Client Acceptance & Anti Money Laundering Officer

Faysal Bank has designated a Head of Client Acceptance and Anti Money Laundering (also termed as CAAMLO) who reports directly to the Head of Compliance.

Risk Based Approach

CAAML advocates a Risk Based Approach, meaning that the standards of due diligence, filtering and monitoring vary in view of the specific risks a (prospective) client or client segment may pose. This approach allows for the possibility to use different measures and controls in different situations and risk levels, depending on:

The clients or client segments,

Their background,

Their business activities,

Their products and services needs,

The source and nature of funds or assets, and

The geographies involved.

AML is for Everyone

Faysal Bank’s success on this front is dependent upon the co-operation of all employees andemployee. Everyone must exercise prudence and vigilance when assessing potential new clients, handling client requests and processing client transactions. With everyone’s commitment and determination, it is possible to translate the spirit of FBL’s core values and business principles into daily practice, continue to protect the integrity of the banking system, and maintain the Bank’s reputation as a respectable and trustworthy institution.

Responsibility

Board

The Board’s main responsibility in respect to the CAAML Policy is based on their strong commitment to guard and promote the stability, transparency and trustworthiness of FBL and ensure that the integrity of the Bank’s policies and operations is well preserved.

Senior Management

Senior Management is responsible for ensuring commitment and training, to emphasize the serious consequences of non-compliance, to communicate roles and responsibilities, to ensure a partnership approach with the CAAML policy.



AML Officer

The CAAMLO reports to the Head of Compliance, the CAAMLO has specialist knowledge of money laundering and terrorist financing and the applicable laws and regulations. The AML Officer ensures the necessary quality controls and keeps track of the actual compliance with AML Policy.

The CAAMLO is responsible for assisting the business in developing and maintaining appropriate AML procedures, responding to day-to-day enquiries from the business lines, reviewing and advising on increased risk clients. Furthermore the AML Officer is responsible for the handling of the outcome of transaction filtering, money laundering detection, and reporting unusual/suspicious activities to appropriate authorities (Suspicious Transaction Reporting (STR filing). Furthermore he is responsible for monitoring the agenda of periodic risk re-assessments.

Staff and Management

FBL staff and management must understand the relevance and meaning of the CAAML Policy and act accordingly, always and everywhere. This is not only a matter of being fully compliant in the “formal sense”, but certainly also of acting in the “spirit” of the CAAML policy and in line with the Bank’s Core Values.

All employees of FBL are required to report any unusual/suspicious activity or transaction to the CAAMLO through their line management or in certain cases even directly to the CAAMLO.



INSIDER DEALING

Purpose

Faysal Bank Limited has adopted this Policy in order to facilitate compliance with the local laws including compliance with Securities and Exchange Commission of Pakistan (SECP), State Bank of Pakistan (SBP), listings of Karachi Stock Exchange (KSE) and Lahore Stock Exchange (LSE) as well as International regulatory framework.

Introduction

Insider trading, unethical by nature and a crime according to law, undermines investor’s confidence in the fairness and integrity of the securities markets. As such securities regulators all over the world have treated the detection and prosecution of insider trading violations as one of their enforcement priorities.

Under the SECP, SBP and KSE laws, criminal and civil penalties may be imposed upon persons (including customers and staff) and corporations that:

o Buy or sell a company's stock or other securities while in possession of Inside Information (note that this prohibition applies regardless of how you obtain the information and whether or not you consider the Inside Information when deciding to buy or sell the security); or

o Disclose inside Information to another person who then trades in securities.

In addition, in certain circumstances, penalties can be imposed on the Bank in the event of insider trading violations by employees, officers or directors of the Bank.

Key Terms and Definitions

Insider: Insider means all employees, officers and directors of the Company, the Company’s outside advisors (External Auditors and consultants), agents and contractors, and any other third parties associated with the Company who have access to the Company’s Inside Information.

Inside Information: Inside Information means information that is both material and non-public. Inside Information may include, but is not limited to, matters regarding a company's business or financial condition, its strategic plans (including acquisitions or the sale of significant assets) or other important events that could affect the market price of the company's securities. For purposes of this policy, Inside Information includes any material, non-public information about the Company. It also includes material, non-public information about other publicly-held Bank and/or any other listed company that is obtained in the course of employment or other involvement with the Company's business.

Material: In general, information is "material" if there is a substantial likelihood that its disclosure to the public would affect investors' decisions to purchase, sell or hold the securities of the company in question; would significantly affect the total mix of information



available to the public; or would likely affect the market price of a company's securities. Ifyou learn of information about the Company or other Bank and / or any other listed company that might be important to an investor, the information probably is material.

Non-Public: Non-public information is Company-related information that has not beenreleased through an official news release or other public official announcement. Information does not become "public" information merely because it is the subject of rumors or unofficial statements.

Immediate Family: Any child, parent, spouse & sibling.

Trading Day: Any day on which any of the stock exchanges in Pakistan are open for trading.

Securities: Any security listed and traded at any stock exchange located in Pakistan or elsewhere.

Closed Period: The closed period includes five days immediately preceding and five days subsequent to each and every Board Meeting when the Quarterly/Annual accounts of FBL are placed before the Board of Directors for approval and announcement of Dividend, etc., if any.

Guidelines

Information should not be regarded as "public" until at least two full trading days have elapsed after it has been published by a national news medium or has otherwise become available through an official news release or official announcement such as audited annual report.

All Insiders (as defined below) of FBL and any of FBL’s affiliated or managed Bank (s) shall comply with all applicable local laws relating to buying or selling securities of Faysal Bank Limited or any of its affiliated company(ies). In the normal course of the Banking business, Insiders such as Directors, Key Management Personnel, Staff and Bank’s customers etc. may become aware of Inside information such as upcoming financial results, new products in pipelines, HR policies of the Bank, proposed Mergers and Takeovers/buyouts etc. including dealings with other Banks.

The following conduct is prohibited under this policy:

o Insiders of the Bank, members of their immediate families, or any trusts over which they have control, enter or engage in any transaction involving a purchase or sale of FBL’s securities, including any offer to purchase or to sell while in possession of Inside Information. This prohibition applies even if the decision to buy or sell is not based upon the Inside Information.

o Insiders of the Bank, members of their immediate families, or any trusts over which they have control, may not buy or sell securities of any other publicly-held company while in possession of Inside Information about such company obtained during the course of their job with the Bank. This prohibition applies even if the decision to buy or sell is not based upon the Inside Information.



o Insiders in possession of Inside Information may not:

o Disclose the Inside Information to anyone including members of immediate family other than those individuals associated with the Bank who need to know the information to conduct their job duties; or

o Offer tips, opinions or recommendations regarding Inside Information, or based on Inside Information, to any other individual, including members of the Immediate Family, friends, vendors, suppliers or customers, who may use the same to his or her profit by trading in the securities of FBL and/or such other Bank or company to which the Insider Information relates.

The Bank considers it improper for any Insider to engage in speculative transactions with Faysal Bank Limited securities. Therefore, Insiders are prohibited from engaging in the following with respect to FBL securities:

o Buying or selling publicly traded options, warrants and other derivative securities;

o Engaging in short selling:

o Engaging in hedging transactions; or

o Margin purchases of FBL securities.

The directors, chief executive or any other executive of FBL shall neither directly nor indirectly deal in FBL securities in any manner, whatsoever, during the Closed Period, as defined in section 1.3.8 of this policy, irrespective of whether or not they possess Inside Information at such time.

Every person subject to this policy has the individual responsibility to comply with its provisions against insider trading, and appropriate judgment should be exercised in connection with any trade in securities of FBL, and its affiliates of managed Banks and/or the securities of such other public companies in relation to which a person subject to this Policy possesses Inside Information. Any Insider may, from time to time, have to forego a proposed transaction in FBL’s securities even if he or she planned to make the transaction before learning of the Inside Information and even though the Insider believes he or she may suffer an economic loss or forego anticipated profit by waiting.

The Management of Faysal Bank Limited will be within its right, at all times to produce to the legal /law enforcing authorities, any of the parties, in person or associated evidence there against, if any established, in respect of the implicated person (s) as stated here above who is/are found to be involved in inside trading by way of such plausible evidence, so as to meet the requirements of the country/territorial law.

This policy will continue to apply to any Insider whose relationship with the Company terminates as long as the individual possesses Inside Information.

Employees of FBL and its affiliates or managed Banks who violate this Policy shall, at the discretion of FBL, be subject to disciplinary action by FBL, which may include ineligibility for future participation in FBL’s equity incentive plans for termination of employment.



Directors, chief executive, managing agents, chief accountants, secretaries and auditors of FBL or any person who is directly or indirectly the beneficial owner of more than 10% of FBL’s equity securities must also comply with the reporting obligations set forth in section 224 of the companies’ ordinance, 1984. The practical effect of these provisions is that the directors, chief executive, managing agents, chief accountants, secretaries and auditors of FBL or any person who is directly or indirectly the beneficial owner or more than 10% of FBL’s equity securities who purchases and sells FBL’s securities within a 6 month period must disgorge all profits to FBL whether or not they had knowledge of any Inside Information.



TRADING & TRANSACTIONS

Market Manipulation

Prohibited Market Practices

Employees must not engage in any conduct or assist a client or another person to engage in any conduct which would prevent the proper operation of market forces. Certain market practices are either illegal or considered by FBL not to be in accordance with best business practices and employees must not engage in these practices either in the course of client or personal trading. The following types of market misconduct are offences in Pakistan and are punishable by fine or imprisonment. They also attract civil liability so that an employee who engages in the misconduct may also be forced to pay compensation to any third party who loses money as a result of his or her misconduct.

There are certain defenses to each of these offences. However, this is a complicated area of the law with serious consequences. If an employee suspects that these offences are occurring either in FBL or at a counterparty of FBL, he/she must immediately consult Compliance

False Trading

Employees must not either intentionally or recklessly engage in activities which are intended to

Create a false or misleading appearance of active trading in securities or futures; or

Create an artificial price or maintain an artificial price level in securities or futures. Except in the case of an off-market transaction or as otherwise advised by Compliance, any employee who engages in the following activities is deemed to be engaged in false trading:-

o Entering into a sale and purchase transaction with no change of beneficial ownership;

o Offering to sell securities or futures at same price as he/she has offered to purchase the securities; or

o Offering to purchase the securities or futures at the same price as he/she has offered to sell the securities.

Price Rigging

Employees must not enter into a transaction with no change of beneficial ownership or a fictitious or artificial transaction with an aim to maintain, increase, reduce, stabilize or cause fluctuations in the price of securities or futures.

Disclosure of False or Misleading Information Inducing Transactions

Employees must not disclose or circulate false or misleading information that is likely to;

Induce another person to deal in securities or futures

Induce the sale or purchase of securities by another person; or

Maintain increase, reduce or stabilize the price of securities or futures



Stock Market Manipulation

Employees must not enter into multiple transactions in securities with the aim of

Increasing the prices of the security with the intent of inducing another person to purchase or not sell that security or its affiliated securities; or

Reducing the prices of the security with the intent of inducing another person to sell or not purchase that security or its affiliated securities; or

Stabilizing the price of the security with the intent of inducing another person to buy or sell or not buy or sell that security.

Fraud

Employees must not use any device or scheme with the intent to defraud or deceive or engage in any act or course of business that is fraudulent or deceptive.

Falsely Representing Dealings in Futures Contracts

An employee must not represent to another person that he is dealing in futures contracts in Pakistan or overseas if he is in fact not doing so or is reckless as to whether he is doing so.

Disclosure of Information about Prohibited Transactions

Employees must not disclose or circulate information to the effect that prices are likely to go up or down as a result of a prohibited transaction that they have entered into or are likely to benefit from.

Front Running

If an employee has knowledge of a client’s order or intention to place an order it is prohibited for that employee or for FBL to gain advantage or enable another person to gain advantage where to do so would disadvantage the client in anyway.



CLIENT CONFIDENTIALITY & CONFLICTS OF INTEREST

Conflicts of Interest

FBL is a full service integrated Bank and financial service provider which means that circumstances can arise which lead to conflicts of interest between clients of different Business Units or departments or between clients of the same department/division.

Identifying Conflicts of Interest

Various circumstances can lead to conflicts of interest between the needs of different clients. Employees must remember that business relationships which seem minor to their departmentmay be of importance to another department.When a potential conflict has been identified this must be discussed immediately with senior management and Compliance.

Managing Conflicts of Interest

Conflicts of interest must be managed appropriately to ensure fair treatment to all affected clients of FBL. The various procedures set out in this Policy are designed to assist in the management of conflicts of interest.

Conflicts must be disclosed to clients unless to do so would breach confidentiality obligations to other clients. If disclosure cannot be made or the conflict cannot be resolved, the business should be declined.

Preventing Conflicts of Interest

Employees must not unfairly or unreasonably place the interest of a department/division FBL above those of a client.

Within FBL business relationships between units must be conducted at an arm’s length basis which reduces department/division conflicts of interest. Potential conflicts may arise due to unauthorized exchange or leaking of information, movement of employees within FBL or personal activities outside the Bank (e.g. external business interests even when approved). It is not always obvious when a conflict might arise so employees should seek the advice of Compliance.

Exclusivity

Exclusivity may not be offered to a client without ensuring that the appropriate checks have been made with the Deal Team for that. Function/Department all exclusivity arrangements must be approved by the relevant function/department and if it would constrain FBL from working freely with its clients in a particular sector must have Senior Management approval. The wording of all agreements must be approved by legal.

Other References• Code of Conduct



WHISTLE BLOWING

Faysal Bank’s Policy on Whistle Blowing

In order to create a climate of transparency in the organization, staff can raise genuine concerns about possible malpractices without fear of reprisal. The aim of these procedures is to ensure that employees making allegations of malpractice in good faith can be confident that they will suffer no detriment for having raised their concerns and that any allegations of malpractice will be fairly investigated and proper action taken.

What is Malpractice?

Malpractice includes serious breaches of FBL’s own internal rules, regulations or business principles, other unethical conduct, criminal offences or breaches of civil law or regulation, endangerment of the health and safety of any person, questionable accounting and auditing matters and the deliberate concealment of any malpractice. Examples include market abuse, breach of client confidentiality, money laundering, terrorist financing, insider trading, theft, fraud, bribery or corruption or financial irregularity. Employees should report matters which are current or have occurred recently unless matters from the past continue to have an impact at present or have just been discovered and are material to the business of FBL.

Raising a Concern

Reporting

INTEGRITY is a non-negotiable core value within FBL and must be observed when dealing with all the stakeholders including employees, customers, government agencies, and vendors. Compromising on integrity is dangerous and puts the reputation of FBL at risk; thus, any form of malpractice or breach of integrity is taken seriously by the Bank. The "Employee Whistle blowing" applies to the internal reporting of possible malpractices (for example, market abuse, breach of client confidentiality, financial irregularities, money laundering, insider trading, bribery & other forms of corruption, etc) within the FBL and provides guidance for dealing with them in a constructive way. All such concerns may be raised with the Head HR, if deemed necessary, who would report it to the Head of Compliance for appropriate action and/or further escalation.

Anonymous Reports

Concerns may be raised anonymously. Employees wishing to remain anonymous should use regular mail to report the matter as email or telephone calls may reveal his or her identity.

Contents of Reports

Sufficient information must be included in the report to ensure the matter can be investigated. This includes:

A description of the matter with all known relevant facts, including dates, names of persons and divisions and location etc;

An indication of the reasons why the matter is of concern;

An indication of whether the matter is ongoing happened previously or is planned;



An indication of how the reporting employee became aware of the matter;

Whether there are other persons involved or witnesses;

Whether the employee has any concrete supporting information or documents;

Whether the employee has discussed the matter with anyone else and if so, who; and

An estimate of the amounts the matter could involve.

Handling of Reports

Confidentiality

The employee raising the concern and the Whistle Blowing Coordinator (i.e. Head HR) must keep the report confidential. The employee should not disclose that he or she has made the report and must keep feedback confidential.

Protection of Employees

Protection from Retaliation

No employee who makes a compliant under these procedures will be in any way disadvantaged, regardless of the result of the investigation. Senior management do not permit employees to be harassed in the workplace and any employee who feels that he or she is being harassed as a result of making a report should raise the matter with Human Resources.

Protection from False or Malicious Reports

Any employee who makes a false or malicious report will lose the benefits of the protection under this policy and disciplinary action will be brought against him or her.



DONATION POLICY

Faysal Bank is a socially conscious and responsible corporate entity. As such it has been making contributions and donations to the charitable and welfare organizations over the years. Since requests for such contributions pour in all the time, it is expedient to formalize the criteria based on which such contributions shall be made in the future. In order for any contribution to be considered for any charity / welfare organization, the following three tests must be applied to a request:

Test 1

Is the contribution towards any of the following areas?o Healtho Educationo Community serviceo Youth activitieso Special community projectso Environmental protections

Test 2

How widespread is the benefit from this contribution? How urgent is the need? What is the potential and scope of recognition of corporate citizenship for Faysal Bank?

Test 3

Is the contribution tax deductible?

If the considered passes all three tests above stated it may be put up for approval.

Procedure

The Board has appointed the trustees of Waqf Faisal as custodian for evaluating and disbursing the amounts based on above criteria.

The decision of Trustees of Waqf Faisal to accept or reject an application of donation shall be final

The Trustees of Waqf Faisal shall submit a report to the Board of Directors’ on an annual basis of all disbursements made during the year.

For amounts in excess of PKR 5 million in donation to a single party, pre-approval of the Board shall be required. Also, so far as the relevant SBP circular is in force, prior / post facto approval of the shareholders will be required

All requests for donations / contributions received within the Bank shall be referred to the Trustees of Waqf Faisal and no direct payments shall be made.

The express consent of the Trustees of Waqf Faisal must be procured before making any commitment to any organization / charity for a contribution.

Organizations requesting donation must submit proof of tax exemption status.



CORPORATE SOCIAL RESPONSIBILITY (CSR) Policy

Faysal Bank as a member of Pakistan’s corporate sector recognizes its corporate social responsibility commitments in its various roles which includes responsibility towards its customers, suppliers, investors, employees and the community. It firmly believes that a responsible approach to developing relationships between the Bank and communities that it serves is a vital part of delivering business results as such the Bank reflects its commitments towards the following:

Standards of Business Conduct

Faysal Bank is committed to ensuring that Bank business is conducted in all respects according to rigorous ethical, professional and legal standards.

Customers

Faysal Bank seeks to provide customers with products and services hallmarked by integrity, quality and care.

Investors

Faysal Bank is committed towards viewing itself as a custodian of investors funds and in so doing utilize these funds as a trust delivering returns based on best business practices

Human Resources

Faysal Bank is guided by its aim to be the employer of choice in all areas of Bank business and in each geographical location it operates in. the Bank endeavors to provide training and development to its employees to become productive members of the Banking sector and of Pakistan.

Health and Safety

Faysal Bank is committed to providing a working environment that is both safe and fit for the conducting of Banking business and ensures that health and safety issues are a priority for all Banking operations.

Suppliers

Faysal Bank regards its suppliers as its partners and works with them to help the Bank’s policy aspirations in the delivery of the Bank’s products and services.

Community

Faysal Bank strives to be good corporate citizen throughout Pakistan, recognizing the Bank’s responsibility to work in partnership with the communities in which it operates.



Environment

Faysal Bank is committed to the management and continuous improvements of the direct and indirect impact, which marks its contribution to improving the environment. The Bank recognizes the that its business activities have an impact, however indirect on the communities/ societies it operates in and endeavors to manage theses in a responsible manner believing that by doing so it shall be adding value to its business success.



HR HELPLINE

SECTION ‘N’

Chapter Contents:

Objective Concern address

process (CAP) Information capture Escalation matrix



Section N: HR HELPLINE

Objective of a HR helpline

To implement a comprehensive grievance handling system for HR Function which deals with the employee grievance in an efficient manner within the framework of HR policies laid down by the Bank aimed at increasing motivation and loyalty of the employees.

Employee concerns are as much of importance to us as is their way of conducting business.

Concern Address Process (CAP)

Contact Point

Given our dispersed branch network, our grievance handling process is centralized at the Head Office through HR Helpline. The issue can be lodged through an e-mail address instituted solely for this purpose.

The HR Helpline would entertain and deal with all types of grievances.

All queries routed via the HR helpline will be referred to the concerned HR Business Partner for timely resolution.

Helpline contact details are:

E-mail : [email protected]

Information Capture

No anonymous emails will be entertained.

Helpline Form shall have the following minimum details:

Employee name and contact details Name of person handling grievance Date on which grievance communicated to HR Facilitation Desk Grievance reference number Information of the grievance (this should be logical, coherent, relevant, clear and complete). Start of investigation and completion dates (tentative by when issue is to be resolved). Linkages (who does the grievance handler assign the resolution to etc.)



Escalation Matrix

If an issue is not addressed at “First Contact” point (HR Helpline), the escalation matrix proposed is:

1st contact : HR Business Partner2nd contact : Sr. HR Business Partner3rd contact : Head Rewards, Policies and Projects 4th contact : Head HR

FBL HR Policies Final

Documents