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Executive Summary

From since 1963, Citibank serving its customers by providing them quality products and
services which are designed in a way that fulfills customers needs and requirements
conveniently. In service from last 44 years, Citibank operates in Pakistan through its
seven branches located in five major cities Karachi (3), Islamabad (1), Rawalpindi (1),
Lahore (1), and Faisalabad (1). The banks head office is in Karachi.

Bank carry out its operation through many departments such as operations department,
collection department, citiphone services, merchants, and CIU. Operation department
consist of card operations and banking operations and handles the receipts and payment
of cheques with help of NIFT. Collection department consist of front end, mid range, and
hard core and responsible to ensure the payment from the customers. Citiphone is a 24-
hour’s service and handles the flow of the traffic of customer’s different queries
regarding the bank products and services and also process the problem of the customers.
Merchant department deals with POS, responsible to increase the outlets for Citi credit
cards, receipts and payments to these merchants, and maintaining the good relationship
with merchants. CIU or credit initiating unit verify all the applications received by bank
for its products.

Citibank is the multinational organization with multi-skills and multi-culture peoples.

Bank is well aware of that by investing in its people is the only way of obtaining the
desired results. To take care of its employees bank has complete HR department in
Karachi and Lahore. HR activities include recruitment, selection, performance appraisal,
and performance based incentive system etc.

In the present scenario of hard economic conditions and tough competition bank still able
to earn profit after tax of Rs. 1064 million. Banks assets, deposits, advances, and equity
are Rs.62148 million, Rs. 40838 million, Rs.25657 million, and Rs.6826 million
respectively in 2002.

Citibank offers the wide range of products and services such as credit card (gold, silver,
and co-branding) loans (personal and home loans), car financing, and banking (citigold,
local currency account, and foreign currency account).

The major competitors of Citibank are SCB and ABN Amro. Bank operates successfully
with limited number of branches is only due to the advance technology used by the bank
i-e database communication system.

In short, Citibank is serving Pakistani customers from since 1963 successfully and proven
itself as the most prestigious and successful bank in the industry with its unique products
and services.

Chapter: No: 1



Citigroup Inc. is a diversified global financial services holding company whose

businesses provide a broad range of financial services to consumer and corporate
customers with some 200 million customer accounts in six continents and more than 100
countries and territories, dates back to the history of Citibank, which began in 1812;
Travelers, since 1864; Smith Barney, founded in 1873; and Banamex, which was formed
in 1884 as a result of the merger of Banco Nacional Mexicano and Banco Mercantil

Other major brand names under Citigroup's trademark red umbrella include Citi Cards,
CitiFinancial, CitiMortgage, CitiInsurance, Primerica, Diners Club, Citigroup Global
Corporate and Investment Bank, Citigroup Asset Management, The Citigroup Private
Bank and CitiCapital. Below are brief descriptions of many of the most significant
business activities.


To be a unique global bank and the leading regional consumer bank across Asia Pacific
and Middle East dedicated to our customers, financially strong, consistent committed to
the staff and their development, and delivering sustained superior performance.

Citigroup Global Consumer Group:

The Citigroup Global Consumer Group businesses comprise the financial service sector's
most diverse consumer product offerings - banking services, credit cards, loans and
insurance. It also offers industry-leading advanced technology, a strong worldwide
presence and a powerful global franchise in Citibank.

Citigroup Global Investment Management:

Citigroup Asset Management provides investment management and related services to a

broad spectrum of clients around the world, from beginning investors to wealthy
individuals to large institutions, both public and private. It boasts one of the most
impressive research teams on Wall Street and some of the most well-known brands in
money management - Smith Barney, Salomon Brothers and Citibank. The Citigroup
Private Bank offers boutique service to its clientele while, at the same time, being backed
by the full power of Citigroup. With offices in 59 cities around the world, it is one of the
world's most global private banks. Global Retirement Services provides for the retirement
and pension needs of clients around the world.

Citigroup International:

Citigroup, principally through Citibank, has a long and unrivaled history as a provider of
financial services throughout the world. Its global footprint includes more than 100
countries in North and South America; Asia and the Pacific; Western, Central, and
Eastern Europe; the Middle East; and Africa. It offers customers personal service and the
advantages of a local bank, while its global platform allows introducing a continuous
stream of new and innovative products quickly and more cost-effectively than

Its banking, lending, investment and insurance services serve the needs of individual
consumers. Citibank is the leading provider of credit and charge cards, such as
MasterCard, VISA, and private label throughout the emerging markets, and it has one of
the largest networks of ATMs. Its full range of financial services products serve the needs
of small and large corporations, governments, and institutional and individual investors,
including a full range of treasury, foreign exchange, and financial advisory services.

Citibank in Pakistan:

Citigroup started its activities in Pakistan in July 22, 1961 by establishing Citibank in
Karachi. Now it operates in 6-major cities of Pakistan such as Karachi (2 branches),
Lahore (1 branch), Faisalabad (1 branch), Islamabad, (1 branch) and, Rawalpindi (1
branch) with its seven branches. Citibank Islamabad involves in:

• Corporate banking

• Consumer banking.

• Consumer banking:
In consumer banking Citibank operates in following

City Phone Services:

24 hour, 7 days a week, 365 days a year, Access information, give instructions or register
customer’s complaints with the utmost confidence, complete security and total
confidentiality over the telephone. Customers can use the option of Self Service Banking
or get assistance from efficient Citiphone Bankers.

Car Financing:

With the increasing demands of everyday life, vehicle ownership has shifted from a mere
luxury to a vital necessity. However, exorbitant car prices make cash purchasing
unaffordable. With the widest range of car loan packages in the market, Citibank Car
Financing enables the customer to get the car of his dreams in affordable and convenient
installments. Citibank is the market leader in the Car Financing market. Citibank provides
flexibility of choice, real value and a premium brand name along with a host of value
additions to its Car Financing customers.

Home Loans:

Citibank is offering the widest range of Home Loans Products in the market. From
purchasing a home to furnishing it, from acquiring business assets to financing your
children's education abroad, and from purchasing that perfect plot to constructing the
ideal home, Citibank will provide the best possible solution for customer needs. And that
is not all bank will also structure the loan to suit one’s cash flows in order to minimize
the paid mark-up.


In banking Citibank offers following three types of accounts:

 Citibank Karobar
 Citibank Rupee Saving Account
 Citibank Rupee Time Deposit: There is two types of time deposits with
various tenors and profit payment options They are

* Citibank Premium Profit

* Citibank Sarmaya Plus

Citibank Credit Cards:

Citibank offers a wide range of Credit Cards, including Silver, Gold, Co-brand cards and
exclusive Shaheen Card for Air Force Personals. Following are some features and
benefits related to the Citibank credit cards.

 Credit Shield
 Photo Card
 24-Hours Banking Service
 Fraud Early Warning Service
 Supplementary Card

 Zero Liability On lost Card

 Flexible Repayment
 Travel Accident Insurance

• Corporate banking:

The Corporate Banking Group at Citibank in Pakistan is committed to providing its

clients the highest level of service possible. Recognized as a leader and a trendsetter in
the financial markets, the Corporate Bank strives to achieve Citibank's global objective of
customer satisfaction and quality through a well- diversified product offering and a team
of highly professional Relationship Managers. The Corporate Bank manages a high
quality asset portfolio being an active player in many sectors including textile, sugar,
leather, pharmaceutical, fertilizer, petrochemical, power, aviation, automotive,
telecommunications, oil and gas distribution and fast moving consumer goods industries.
Bank’s client companies include leading multinational corporations, top tier local
corporate organizations and public sector entities. Citibank has been instrumental in
bringing together local companies with international players in several Joint Ventures.
This has been possible because of Citibank's Global Relationship, communication system
and transnational network.

In corporate banking Citibank operates in following:

 Cash Management
 Corporate banking
 Treasury
 Financial and security services

Chapter: No: 2

bank’s Analysis
 Operational Analysis

 Human Resource Assessment

 Financial Analysis

 Marketing Analysis

Operational Analysis

Collection Department

Operations Department

 Sales Department

Credit Initiating Unit (CIU)

Citiphone Services

Merchants Department

Collection Department

Collection department as its name indicates provides its services for the collection of
credit card payment. Sufficient numbers of employees called “Collection Officers” (C.O)
collect the payments by remembering the card members their due dates through telephone
calls. We can categorize the collection officers in to “Tele Callers” (T.C) and “Field
Coordinators” (F.C). Tele callers made the daily calls to the card members assigns to
him/her while field coordinators assist tele callers in order to support the collection
process. In order to work efficiently collection department works through three sections i-
e front end, mid range, and hard core.

Front End:
Front End section deals with the accounts which are 30-60 days past due (dpd)

Mid Range:
Mid Range section deals with the accounts which are 60-120 dpd.

Hard Core:
Hard Core section deals with the accounts which are 120-180 dpd.

After this the account is transfer to “Recover Department” for legal proceedings.

Departmental Structure:
The authority hierarchy of collection department is attached with the report as Appendix

Other Functions:
Besides collection of the card payment this department performs various other functions
such as processing and handling of return cheques related to the cards, processes return
billing statements, dispatching cancellation advises etc.

Operational Department
The main functions of this department includes processing of new accounts, handling of
telegraphic transfers, ordering and receiving of cheque books, clearing cheques of others
banks and issuing Citibank’s cheques. This department consists of two sections i-e card
operations and banking operations.

Card Operations:

As credit cards are the main product of Citibank, therefore this section processes all the
cheques and other modes of payment relating to the credit cards. This section also
processes all return cheques, return official documents, merchants’ slips regarding their
payments and cheques are issued to the merchants for their claims.

Banking Operations:

In this section cheques are categorized and presented to other banks for payment with the
coordination of an organization called National Institute Facilitation Techniques (NIFT).
It helps to coordinate between different banks by transferring cheques from one bank to
another bank at a certain fee, so that the banks themselves are not concerned with the

Departmental Structure:


Operation Officers
Operation Officers OperationOfficers
Operation Officers

Sales Department

This department is responsible to for bringing the new business for the bank. This
department deals in all the consumer products of bank such as credit card, loans,
accounts, and mortgage, etc.

Departmental Structure:






TSO = Tele Sales Officers BRO = Business Relation Officers

TSO contact the potential customers through phone and try to convince him to become
the bank’s respected customer. BRO assists TSO in the field visits.

Credit Initiating Unit (CIU)

The functions of this department includes the verifications of all applications received for
the request of bank’s different products such as credit card, personal loan, auto loan, and
mortgage etc. The authorized officers of the bank verify the eligible applicants (based on
income calculation) information through phone and by personal field visits and note that
verifications on both computer and on “Authentication Report”. For phone verification
“Internal Authentication Report” (attached as Appendix C) is used and “External
Authentication Report” is used for the field visits. After the proper verifications all right
applications send to the Karachi Head Office of further processing with Authentication
reports because all the acceptance of applications are approved in the head office. Then
the product is send to the successful applicants. Therefore, this department also processes
the returned products which are returned due to any reasons.

Departmental Structure:


Supervisor Supervisor

Authentication Officer AuthenticationOfficer
Authentication Officer AuthenticationOfficer
Authentication Officer AuthenticationOfficer
Authentication Officer

Citiphone Services
This department handles the flow of the traffic of customer’s different queries regarding
the products of bank and also processes the problems of respected customers. As the
officers of this department has to answer any kind of query regarding bank’s whole
product line therefore the officers so called “ Production Officers”(P O) must completely
aware of the products and their relating matters. Besides, answering the queries of
customers this department also handles the “On Line Banking” through “Citi online
Bankers” (COB). Citi online banking allows customers to make different transactions
online such as utility bills payment, credit card payment, and etc. some general queries
are procedure and requirements of account opening, request for the balance statement,
request for the card billing statement and new cheques book, and ATM requests, etc. This
department also notes down the different problems of the clients and passes it to the
concerned department.

Departmental Structure:






COB = Citi Online Bankers P O = Production Officers

Merchants Department

This department deals with all the matters relating to the merchants (all those places
where citi credit card is accepted consider as merchant). The function of this department
includes enhancing the merchants and banks relationship by increasing the number of
merchants, processes their claims regarding payment of credit cards, and handling and
processing of any dispute in amount of payment. The MRO “Merchant Relation Officer”
collects the sales slip on daily basis from POS “Point of Sale” and forwarded these slip to
card operation department for making of payments draft after recording on the sheet.
Then, on next day these drafts are transferred to the respected merchants after getting
their signatures on receiving sheets. Besides all this routine work this department also
recorded the disputes on concerned form and forwarded to the head office for further
processing. Increasing and making request to install the POS terminals both manual and
electronic are also the responsibility of this department.

Departmental Structure:




Human Resource Assessment


 Bureaucracy is discouraged, entrepreneurial thinking is fostered, and decision-

making is streamlined by an “open-door” management style.

 Diversity is embraced, particularly in light of our globality. Employees think and

act like owners because they are owners.

 Mistakes are tolerated, admitted, and addressed before they become real

 People are promoted on their merits rather than on their tenure, and rewarded for
their performance within the context of what they can personally control or

 People treat each other with mutual respect and dignity. People truly feel that, no
matter how large we grow, each and every one of us can make a difference.


 Take the company personally, they care about each other, the quality of our
products and services, and above all, their value to our customers and
shareholders are committed to a strong work ethic and are constantly striving to
excel in serving their customers,

 Are more interested in team work than in internal politics, lead by example,
giving credit to others for success and assuming personal responsibility for

 Have a sense of urgency and excitement, demonstrate candor, insight, and

creativity, and thrive in an environment of change, challenge, and competition are
top performers and

 Are committed to excellence in whatever they do. (Annual Report)

Human Resource Activities:

HRM practices have shown to be the backbone of any company. Citibank considers its
employees as its real assets and believes that without investing in human resource its
success is not possible in this competitive era. Human resource department of the bank is
in its head office. Banks’ HR department is practicing all the important activities of HR
that includes the following:

 Recruitment

 Selection

 Orientation, Placement, and Separation

 Training and Development

 Performance Appraisal

 Safety Security and Health

 Incentive system

Following are the bank’s human resource activities:

As bank believes that survival in this tough competitive environment is only possible
with the team which is fit in all aspects. Bank also knows that it has competitive edge
over its competitors only because of its perfect blend of skills which its employee
possesses. Thus, to ensure its survival and competitive edge bank give proper
concentration at the initial stage of recruitment, so that only bright, energetic, and
enthusiastic peoples are recruited which match with bank’s requirements. For recruitment
purpose bank uses both internal and external recruitment channels.




• Internal Recruitment:

Whenever there is internal job opening, employees are informed about openings and
required qualifications by posting the notice on the “notice board or white board” almost
in every department. These jobs are also available on bank’s intranet. Then interested and
qualified employees are report through self nomination or supervisor to HR department.

• External Recruitment:

Mostly bank used “employee referrals” as an external recruitment channel. It depends on

the nature of job opening bank also uses Write-ins and advertisement to attract the
capable pool of peoples.

After recruiting the pool of capable recruiters by HRD, for contractual hiring the manager
and supervisor of concerned department take the initial interview and then person is
hired on probation period of 3-month and then final induction is decide by the regional
manger. Here one thing is important to mention that bank has made contract with third
party (Nexus Resources and Credit & Commerce) for the recruitment of contractual
employees. Then later on, if any permanent post is vacant then the one of the senior
contractual employee is promoted to fill that post. For this, contractual employee has to
pass the series of hiring steps such as valid written test related to employee job
knowledge, interview, and medical evaluation etc in Lahore branch of bank.

Orientation, Placement & Separation:

• Orientation:

As such there is no formal kind of orientation for the new employee in Citibank. In bank
orientation of the new employee is assignment of “buddy”. In “buddy system” senior
employee is asked to show the newcomer around, introductions for the supervisors, and
answer the questions. During this orientation period “department manual” (which contain
the details of functions, responsibilities of all designations in department, way of working
and also contains the is or is not) is given to the new employee so that he can get the
initial idea about the department working, his/ her job nature, authority and etc. Later on,
any deficiency is covered by the bank’s efficient training and presentation program.

• Placement:

As far as placement is concerned, the employees are promoted/ demoted only on the basis
of their performance. The performance of employee is measured by the both at supervisor
level and at manager level. In order to encourage employees promotions are only on
merit basis. Instead of transferring between different departments the tasks are assigned
to different employees on rotation basis. Although there is no restriction on inter
departmental transfer.

• Separation

Under the head of separation bank offers temporary leaves, attrition, and termination.

Leaves: are allowed as per contract.

Attritions: It is the normal separation of employee by voluntary resignation, retirement

and death.

Termination: Bank strictly discourages the termination but it takes place only on the
disciplinary grounds (late coming) after issuing three “memos” (waning letters). In case
of termination bank gives one month salary to the terminated employee as “severance


Bank knows well that only by providing the efficient training and development program
its employees can able to meet with the ever changing market environment and customers
requirements. The bank employees can able to satisfy the customers in all aspects, only if
they completely aware about the products and services offered by bank and relating
matters, so for this purpose bank concentrated on intensive training program by:

• On Job Training (OJT):

Bank provides its employees OJT so that they can understand the nature of job in realistic
way. Moreover this provides employees opportunity to enhance their job knowledge.

• Off Job Training:

In order to make its employee more efficient bank also has the off job training for the
employees. This off job training is arranged by the bank mostly in the business hall of
Marriot hotel Isb. This is mandatory for all employees to attend these programs. The
topic covers are mostly relating to the management, security, and etc. such as leadership,
information security, effective business communication etc. By providing off the job
training bank offers the opportunity of grooming to its employees.

• Lecture & Video Presentations:

Besides all these, at department level there is also arrangement of training through
lectures and presentations by the senior employees. Senior employee has to give
presentation relating to the department functions, its processes and disciplinary rules etc.
This type of presentations held at departmental level at least thrice time in the month. The
timing, topic and name of the employee is written on the white board, as the Saturday is
the half working day therefore mostly this type of practices held on Saturday after 2:00

• Training Evaluation:

After attending any kind of training session there is proper system of training evaluation.
The participants have to fill the training evaluation form (Appendix D). This practice
helps bank to make the match with changing needs.

In Citibank performance appraisal is critical activity in order to measure the employee’s
performance against job related performance standards. Employees received proper
feedback on regularly basis in order to improve their performance. Employee
performance is measured at departmental level by the combined effort of supervisors and
managers. As bank officer has to record all its activity relating to the job on the computer
and update this on daily basis therefore, standards are established according to the job.

For example, in collection department there are separate performance standards for F.E,
M.R, and for H.C. As tele callers have to contact the customers therefore the minimum
number of calls is set as performance standard with sufficient percentage of promises to
pay. Same way number of visits with sufficient number of successes is set as
performance standard for field coordinators. Feed back is provided to all officers on daily
basis, on weekly basis, and finally on monthly basis in the shape of summary of accounts
and amount. These standards are revised on monthly basis as per requirement. Thus, each
employee performance is measured according to the related standards. Other elements
also contribute in the PA process such as accuracy with which transactions are recorded
with activity codes, employee behavior and attitude during the interaction with customers


Citibank believes that only the employees who are satisfied in all aspects are the
productive employees. Therefore, Citibank provide safe, secure, and healthy working
environment to its employees. Bank provides free medical to all its permanents
employees and their families. For this purpose two hospitals i-e Al-shifa and Ali hospitals
are on its panel. Bank also provides life insurance and accident insurance to all its
employees especially to the field staffs. Filter water is supplied to all departments by the
AVA Company because there is no compromise on health. As the Citibank is American
base bank therefore in these critical conditions there is an effective security arrangement
both internally and externally.

In order to motivate its employees Citibank uses both psychological components such
 achievement certificates,
 monthly breakfast,
 quarterly trip,
 annual dinner
 excellent performance monthly reward (monetary)
 bonus based on performance
 allowances(travel, petrol and maintenance

Financial Analysis

The place that makes managing your money as easy as

spending it.

Source: Banking Survey 2006

As on 31ST DECEMBER 2006

2006 $
As at December 31, Millions
Cash & balances at central banks 15220
Investment 11280
Financial Institutions 7993
Corporate and Consumers 25657
Operating Fixed Assets 319
Other Assets 1679
Bills Payables 435
Borrowing 11002
Deposits 40838
Equity 6826
Other Liability 3047
Total Liabilities 62148

Income Statement
As on 31ST DECEMBER 2006

Source Rs.(mln)
Spread 2648
+Non-Funded Revenue 1502
Operating Income 4150
Operating Expenses (1708)
Provisions / (Reversals) (154)
Profit before tax 2288
Taxation (1224)
Profit after Tax 1064


Due to 9/11 world economy has suffered a great recession during the period of last two
years, despite of all this Citibank continuous its way to progress in year 2006 the
financial review of the bank is as follow:

Total assets of the bank are increased to Rs.62148 million in year 2006from Rs.61575
million in 2006.Thus, bank holds 2nd ranking position amongst foreign banks as far as
assets are concerned.

Profit after tax increased to Rs.2288 million in 2006from Rs. 1827 million. For this, bank
ranks 2nd by dropping from 1st position which is now hold by the SCG. Bank earned 1064
million profits after tax in current year.

Bank still hold the 1st rank in return on total asset by showing the increase of .7% from
3% in 2005to 3.7% in 2007.

Bank’s advances are decreased by 5.4% from 27119 million to 25657 million in 2006
which is 21% of the total advances (123888 million) of all the foreign banks.

Deposits are decreased by 1.6% from 41506 million to 40838 million in 2006 which is
23% of the total deposits (167678 million) of all foreign banks.

Investment in securities increased to 11230 million from 6749 million.

Income from dealing in foreign currencies increased to 359 million in 2006 from 222
million in 2005.

Banks return on equity is increased by 1.4% from 18% in 2005to 19.4% in 2006 Equity
of the bank is also increased from 5535 million to 6826 million.

Spread of the bank also showed the increase of 0.3% from 5% to 5.3%.

Bank’s non funded revenue to operating income ratio increased from 32.6% to 33.6%
showing the increase of 1.00%. With this increase, bank ranking is improved to position
5 in 2006 against its position in 2005.

Operating cost to operating income ratio is decreased by 8.3% from 46.5% in 2005 to
38.2% in 2006While bank’s operating income is increased to 4467 million from 3554
million in 2005and bank’s operating cost is increased to 1708 million from 1652 million
in 2005.

Staff cost to operating cost ratio increased by 1.7% from 52.1% in 2005to 53.8% in 2006
Bank’s increased its staff to 637 from 605 in 2005 increases its staff cost by 57 million
from 861 million in 2005to 918 million in 2006.

Bank decreases its executive staff from 87 in 2005to 74 in 2006which decreases the
executive remuneration from 19.1320 million to 17.8946 million in 2006.On the other
hand remuneration per executive is increased to 2.4 million from 2.2 million in
2005.CEO remuneration is also increased to 18.327 from 16.867 in 2005.

Bank’s avg. advance to avg. deposit ratio is decreased by 0.9% from 64% to 63.1% in
2005which decline bank’s ranking for this ratio from 5 to 7 in 2006.

Bank’s foreign currency deposits to total deposits ratio is also decreased from 36% in
2005to 28.2% in 2006showing the decrease in foreign currency deposits by 7.8%.

While non-performing advances to gross advances ratio remains same in 2006i-e 3.5%.

Citibank’s credit exposure in textile sector is increased by 0.6% from 23.8% to 24.4% in
2006out of total advances. Credit exposure in chemical and pharmaceutical sector is
decreased by 0.7% from 13.4% to 11.7% out of total advances in 2006 Credit exposure to
govt. and public sector is showing the tremendous decrease of 6.7% from 10.1% to 3.4%
in 2006out of total advances.

Credit rating of the Citibank

Firms Short Term Long Term
Standard & Poor’s A-1+ AA
Moody’s P-1 Aa1
Fitch IBCA F1+ AA


All these financial information are extracted from balance sheet, income statement, and
from banking survey of Pakistan 2006.

Marketing Analysis

The Citibank has efficient marketing process that includes broachers, leaflets, contacting
customers through phone and personal visits. As the bank leads in the credit card so, the
statement is the powerful tool used by the bank for marketing purpose. Because of
selected target market as such there is no TVC’s by the Citibank. Citibank prefer online
internet advertisement. The main emphasis of bank is to retain the existing customers by
offering the different promotional campaigns.

4-P’s of Citibank:

(a) Product:

Citibank offers a variety of quality product to its respected customers involved both the
corporate and individual consumers. Instead of satisfying the customers the main
emphasis is on delighting them.



Credit cards Homeloans
Home loans Carfinancing
Car financing Banking

Credit Cards
Citibank offers a wide range of credit cards including silver, gold, and co-brands cards.

• Citibank Gold Credit Card:

The Citibank Gold Credit Card is specially designed for exclusive life style and special
needs of the customers. As a Gold Credit Card member customer enjoys a higher Credit
Limit and a preferred status throughout the world.


Individual with monthly income of RS 50,000 or more having a Pakistani citizenship is

eligible for Citibank gold card.

• Citibank Silver Credit Card:

The Citibank Silver Credit Card brings the convenience and financial flexibility a
customer can expect from the World's No. 1 Credit Card. The Silver Card is a truly
international Credit Card offering unmatched features and benefits and complete peace of


Individual with monthly income of RS 16,000 or more (Rs.12, 000 for selected corporate
employees) having a Pakistani citizenship is eligible for Citibank silver card.

• Co-Brands cards:

Includes Caltex- Citibank card, Paktel-Citibank card, and Shaheen- Citibank credit cards.

• Caltex-Citibank Credit Card:

Gear up for more discounts and benefits with Caltex-Citibank Credit Card. Caltex Co-brand card
have all the great features of Citibank Credit Card with following extra benefits.

• Discount Coupons worth Rs.1, 050 on Caltex lubricants and car wash.
• Car Financing Insurance Plan on easy installments at no mark up.
• CNG KITS with installation from Caltex through Smart Installment Plan(SIP)
• 10% discount on car accessories at selected outlets country wide
• Vehicle Tracking Device C-Track on easy installments
• Spend on Caltex-Citibank Credit Card and earn Rewards points.
• Get Supplementary Card absolutely free.
• Paktel-Citibank Credit Card:

The Paktel-Citibank Credit Card has all the privileges of a Citibank Credit Card plus
exclusive benefits in the form of discounted Paktel packages, especially designed for
Paktel-Citibank Credit Card members. The special Paktel-Citibank Credit Card package

• No joining fee on Credit Card

• Security deposit waiver worth Rs. 3,000 on local access.
• Free airtime worth Rs. 2,000 for the first year.
• Up to 10% discount on all existing Paktel packages.
• Up to three Supplementary Cards absolutely free.
• Citibank-Shaheen Credit Card:

The Citibank-Shaheen Credit Card is the first Affinity Card in Pakistan, offered
exclusively to Pakistan Air force and Shaheen Foundation personnel. Out of every rupee
spent on a Citibank-Shaheen Credit Card, Citibank will contribute a percentage to
Shaheen Foundation and to the welfare of Air force personnel.

Home Loans
Citibank is offering the widest range of Home Loans Products in the market. From
purchasing a home to furnishing it, from acquiring business assets to financing your
children's education abroad, and from purchasing that perfect plot to constructing the
ideal home, bank provides the best possible solution for customers needs by structuring
the loan to suit customer’s cash flows, which results in low markup.


• Highest Loan Amounts:

Customers can avail a loan from Rs. 3 lacs to Rs. 50 lacs to purchase the perfect

• Easy Monthly Installments:

Customers can pay back the loan in easy and affordable monthly installments spread
over 3 to 15 years.

• High Loan to Values:

Citibank finances up to 70% of the loan against the value of the property.

• Free Pre-Approved Credit Card:

As a special offer for its valued customers, with every home loan that is booked, you
get a pre-approved Credit Card absolutely free for the 1st year.

• Pricing:

Customers can choose the mark-up rate that suits them best. Bank offer two different
kinds of mark-up rates – the Adjustable Rate and the Stable Rate.

• Flexible Payments:

Citibank Home Loans gives customers the unique option of reducing their principal
balance through partial and full pre-payments or through the step-up payment plan for
a nominal fee. This will allow customers to reduce the overall mark-up costs as and
when they access to additional funds.

• Clubbing of Spouses income:

To avail the facility of obtaining a higher loan amount, Citibank Home Loans offer
customers the option of adding spouse’s income to arrive at the maximum loan amount.

• Minimum Processing Fees:

Bank offers home loan at a minimal processing fee. Bank’s panels of experts take care of
legal and appraisal formalities. They strive to ensure that the property customers are
purchasing is at the right price and has proper documentation.

• Quick Processing Time:

For the convenience of customers relationship mangers make the process of obtaining a
loan hassle free and easy. Bank will disburse loan within 15 days subject to the fact that
customer submit all the relevant documents on time.


 Age between 21 to 65 years.

 Pakistani resident residing and working in Karachi, Rawalpindi, Islamabad.
 Regular monthly income from salary or a business.
 Must be a tax payer
 Employment criteria as per follows

Segment Employment Criteria
Citibank approved company
Confirmed employee
Minimum 2 years of employment
Other Salaried employee
and confirmed
Self-Employed Businessmen Minimum 5 years in business
Self-Employed Professionals
Minimum 3 years in
(Doctor, Chartered accountant,
Engineer or Architect)

Car Financing
With the increasing demands of everyday life, vehicle ownership has shifted from a mere
luxury to a vital necessity. However, exorbitant car prices make cash purchasing
unaffordable. With the widest range of car loan packages in the market, Citibank Car
Financing enables the customer to get the car of his/her dreams in affordable and
convenient installments. Citibank is the market leader in the Car Financing market.
Citibank provides flexibility of choice, real value and a premium brand name along with
a host of value additions to its Car Financing customers.


 24-hours access to Citiphone Banking.

 Wide range of dealership network.

 Value added comprehensive insurance at competitive rates.

 Quick processing time

 Pre-approved Credit Card.


• At least 21 years of age at the time of financing and will be less than 65 years or
(retirement age) before full repayment.
• Pakistani national residing in Karachi, Lahore, Rawalpindi, Islamabad or
• Maximum age of the car at loan maturity should not exceed 8 years.

Citibank offers a wide range of accounts under this head of banking. These accounts are
mainly categorized in three categories i-e


Local CurrencyDeposits
Citi Gold ForeignCurrency
Foreign Currency Deposits

• Citi Gold:

Citi Gold, a preferential service encompasses the facilities of banking, borrowing and
investing all in an exclusive, private and comfortable environment, providing customers
what they deserve….the best. As a Citi Gold member, Citi Gold Card differentiate
customer and gives them the status of very special customer and is the key to recognition
as banks first class customer in Pakistan to experience the unmatched facilities of Citi

Minimum Balance:

Customer has to maintain the balance of Rs. 2000,000 or $ 100,000 or its equivalent in
foreign currencies in his/her account.


 Dedicated Citi Gold Executive (Personal Banker).

 Exclusive Premises
 Higher Withdrawal Limit up to Rs. 40000 per day.
 No charge for banking services.
 Privilege of obtaining advances against deposits at preferential mark-up rates.
 Exclusive discount on various outlets.
 Valet safe car parking.

• Foreign Currency Account:

Citibank offer two kinds of foreign currency account:

Foreign Currency Saving Account:

Open this account with $ 5000 only. Account holder can access his/her funds through
free citi international card. Citi gold member can with draw amount equal to Rs. 40000
per day while other customers withdraw amount equal to Rs. 20000 per day.

Foreign Currency Term Deposits:

Open this account with $ 5000 only and earn competitive interest for 6-monts and 1-year
tenure. There is a benefit of obtaining loan against deposits and option of automatic
renewal on rates prevailing at maturity.


 Resident and Non-Resident Pakistanis.

 Local and foreign companies (except banks and financial institutions).
 Foreign nationals residing in Pakistan.

• Local Currency Deposits:

Citibank offers three types of accounts under this category:

Karobar Account:

Customers can conveniently demand drafts and manager cheques, utility bills payment
only through one phone call. In addition, account holder has country access to the
Karobar account through ATM network.

Rupee Saving Account:

Open this account only with Rs. 100,000 and earn the profit on daily balance which is
credited bi- annually. Account holder can demand TT, pay orders through phone. This
account has special feature of inter-branch access.

Rupee Time Deposits:

Citibank has two types of time deposits on the basis of tenors and profit payment options.

 Citibank premium profit

 Citibank Sarmaya Plus


 Resident and Non-Resident Pakistanis.
 Local and foreign companies (except banks and financial institutions).
 Foreign nationals residing in Pakistan.

(b) Price:

Banks major earning is from markup, interest, penalty charges, over limit charges, and
services fee etc. For example, bank can earn 3% per month on credit card, Rs. 600 over
limit charges. These interest and service charges varies from product to product.

(c) Place:

Bank’s head office is in America and it flourishes its business in all over the world
through its global network of offices in 6- continents and more than 100 countries. In
Pakistan, bank’s control its operation through 7- branches situated in five major cities
Karachi, Lahore, Islamabad, Rawalpindi, and Faisalabad.

(d) Promotion:

As bank hold the strong brand image there fore there is no TVC’s in Pakistan but bank
mostly promote its product through:

 Billboards
 Brochures
 Newspaper

Beside all this, bank introduces different promotion schemes time to time with
collaboration of other companies such as smart installation plan (SIP), special
discount in various outlets, and reward point schemes. One of the most powerful
medium which is used by the bank for promotion is its credit card statement.

Chapter: No: 3
Environmental Analysis

 SWOT Analysis

 Industry and Market Analysis

 Competitors Analysis

 Technological Analysis

 Corporate Citizenship CITIBANK

SWOT Analysis:


 Brand Image
 Efficient workforce
 Globality
 Technological edge


 Limited branch network

 High turnover of contractual employees
 No TVC’s resulting in unawareness regarding products
 High charges as compared to others


 Plastic money
 Other modern products to attract the potential customers


 Low interest rate prevailing in the country

 Competitors
 Extremist as it is the American bank
 Govt. polices

Industry and Market Analysis

Considerably low rates of lending, large liquidity with the banking system, fierce
competition among the banks and lower remuneration on government securities have
pushed the financial institutions towards new avenues such as, consumer financing,
mortgage lending, personal loans, SME’s and agriculture financing.

Consolidation and mergers in the financial sector continued, together with the
privatization of state owned enterprises. The main development in the banking sector was
the remarkable growth in deposits and substantial increase in foreign currency loans.
Although the banks were allowed to give credit in foreign currency (for trade related
activities), in 2002 banks have extended large volumes of foreign currency loans.
Borrowing in dollars has become increasingly attractive in view of the lower rates
(between 2 to 5 percent) and future expectations of a stable rupee.

During this year, the monetary policy of SBP was eased, reflected by the lowering of the
discount rate from 10 to 7.5 percent. The yield on benchmark Treasury Bills rates were
also lowered to an all time low, which resultantly dropped the weighted average lending
rates. While banks were anxious to lock in their funds in govt. papers, anticipating further
interest rate cuts, the govt. used this opportunity to retire its more inflationary debt from
SBP and borrowed afresh from scheduled banks.

In order to protect the interest of depositors of banks, SBP requires the banks to maintain
the risk based capital at not less than 8 percent of risk weighted assets. The deadline for
the maintenance of Rupees 1 billion paid-up capital of banks expired on 31 December
2002. Most banks issued both right and bonus shares, to meet the requirement.

Bank’s performance can be assessed by the level and security of non-performing assets.
The quantum of Non Performing Loans (NPLs) has remained an area of concern for our
banking industry in the previous years. In the recent past, the establishment of Corporate
and Industrial Restructuring Corporation (CIRC) and the promulgation of the Financial
Institutions Recovery Ordinance 2001 have shown the prospects of recovery for these
banks. During 2002, SBP issued guidelines for write off of non-performing loans, which
will show positive signs in the days to come. The NPLs have decreased as compared to
the previous years, due to larger recoveries and transfer of bad loans to CIRC.

Bulk of advances extended by scheduled banks is for working capital financing,

therefore, of self-liquidating nature. Local banks made a significant credit expansion with
35.8 percent increase in 2002. Largest increase was recorded in Saudi Pak of 125.2
percent. A closer look at the financials reveals that the major portion of this increase is
booked in short term.

The overall banking industry flushed with liquidity and in the absence of investment
avenues the banks to invest these funds in treasury bills, PIBs, TFCs etc. Significantly
higher growths in deposits, compared to advances were one of the prime factors behind
the decline in advances to deposit during the current year. Another main reason for higher
liquidity was Rupee interventions by SBP in respect of foreign currency purchases. The

consequent fall in interest rates of PIBs; have started to lower the profits of these banks,
which was off set through large volumes transacted and held during the year. The TFC’s
became the favorite scrip, as these offered handsome returns which prompted the banks
to invest heavily in these securities.

Strong earnings and profitability profile of banks reflect the ability to support present and
future operations. More specifically, this determines the capacity to absorb losses, finance
its expansion, pay dividends and build up an adequate level of capital. Although different
indicators are used to serve the purpose, the best and the most widely used indicators are
funded revenue, non-funded revenue, profit-before tax and return on equity. The average
return on equity was 23.8 percent for the foreign banks as compared to 14.5 percent last
year. Major reason among others is attributable to the significant increase in the securities
revaluation surplus.

Sound management is one of the most important factors behind financial institutions’
performance. Indicators of quality of management, however, are primarily applicable to
individual institutions and cannot be easily aggregated across the sector. Furthermore,
given the qualitative nature of management, it is difficult to judge its soundness just by
looking at financial statements of the banks. Nevertheless, operating costs to operating
income, provisions to operating income and staff cost to operating cost ratios help in
gauging the managing quality of the banking institutions. The staff costs in nationalized
banks have showed an increase of Rupees 2.5 billion compared to 2001. This sudden
upsurge was due to the fact that till 2001 the charge for benevolent fund was on actual
payment basis whereas this year due to adoption of International Accounting Standard-
19: Employee Benefits, a charge of Rupees 832 million has been accounted for on the
basis of actuarial valuation.


Major products and services offered by the bank are as follows:

• Credit Cards:

In credit cards Citibank offers following three types of cards:

 Gold Card
 Silver Card
 Co-Brands Card (Paktel, Caltex, and Shaheen).

• Loans:

 Home Loan
 Personal Loan

• Car Financing:

 Used car financing

 New car financing

• Banking:

 Citi Gold
 Local Currency Account (Karobar, saving, TD).
 Foreign Currency Account (saving, TD).

• Others:

 E-card
 Overdraft
 ATM card



Credit cards Loans
Loans Carfinancing
Car financing Banking
Banking Others

Competitor Analysis
Following review of the nine foreign banks operating in Pakistan clears that Citibank is
facing the hard time from two banks i-e Standard Chartered and ABN Amro.


Provisioning against non-performing loans affect the profitability of banks directly. As

far as provisions are concerned, Citibank made the highest provision amounting to Rs
154 million followed by AGZ bank, ABN Amro, and HSBC RS.40 million, 16 million
and 10 million respectively. SCB and MB have written back the provisions this year
amounting to RS 49 million and Rs. 49 million respectively.


SCG with total deposits of Rs 57,804 million controls 33.43% per cent of the total
deposits (172,867 million) made by all foreign banks, followed by Citibank and ABN
Amro with 40,838 million or 23.62% and 34,696 million or 20% respectively. Out of the
remaining banks only the AGZ bank has more than 10% share in deposits i-e
11.68%.While AGZ registered the highest growth in deposit of 20.8 percent, the banks
experiencing major decline in deposits were CA bank (47.1%) and Deutsche Bank
(32.4%). Citibank also reported the decline in deposits by (1.6%).


Six banks out of 9 have registered decline in advances. Citibank also reported decline in
advances by (5.4%). The banks registering the growth in advances are AGZ, SCB, and
ABN Amro by 28.4%, 10.9%, and 5.4% respectively.


However, when one looks at the profit before tax figures of these banks, SCB has earned
the highest profit amounting to Rs 2594 million, followed by Citibank and ABN Amro
amounting to Rs.2288 million and Rs. 1307 million.


SCB ranked 1st according to the banking survey of Pakistan with highest value of assets
amounting to Rs. 82498cmillion, followed by the Citibank and ABN Amro with the
assets amounting to Rs. 62148 million and 45,722 million respectively.


One of the criteria for evaluating the performance of commercial banks is return on
average earning assets. On the basis of this, Citibank emerged to be the best for the year

2002. It improved from 3% to 3.7% followed by the MB, SCB, and ABN Amro with
3.5%, 3.1%, and 2.9% respectively.


Return on average equity is important for the head offices of these banks. Citibank has
the largest equity of Rs 6826 million followed by SCB Rs.6312 million and ABN Amro
Rs.3140 million.

The ROE of the foreign banks for the two years 2005 and 2006 AGZ emerges the best
bank as far as REO is concerned with 39.1%, followed by the ABN Amro, SCB, and
Citibank with 34.5%, 28%, and 19.4% respectively.

Overall market share of foreign banks as per economic survey of Pakistan is 2.5% but the
banks are claiming different shares. It is difficult for researchers to know the actual
market share.

Technology Analysis
The computer technology plays important role almost in every sector of business. It
completely change the traditional way of working. Thus, computer technology also plays
a vital rule in banking industry and now banks are competing through technology because
they took edge on others by providing efficient services through the adoption of
technology; that includes ATMs, Swift transfers, Online banking, Phone banking, online
processing of applications and etc. Technological advancement is life for foreign banks
because this is the only way of survival for foreign banks due to the limited branch

Technology Used:

The database communication system is used in the Citibank for daily operations which is
directly run, control and supervised by the Citibank Asia Pacific headquarter in
Singapore. However there is proper technology department to look after the maintenance
of all the systems and responsible for the smooth working.


As all the banks aware well of the magic of technology therefore, in order to retain the
competitive edge bank always need to be innovative. To be the leader in innovation soon
Citibank provides its clients online access to his/her account by introducing the “My
CITI” account. Through this, client can access their account through their computers or
lap tap and check the current situation etc.

Corporate Citizenship

As well as being involved with business activities in the country, Citibank also believes
in supporting and being involved with the community. Performing for communities
strongly supports all other aspects of business strategy. It improves the business climate
for bank and customers, and adds to reputation as an employer of choice around the

The Lady Duffer in Hospital Project.

Lady Duffer in is a charity hospital, catering to women and children. Citibank Pakistan
has undertaken three-year support program for fund raising which will help the hospital
to put together an endowment for running expenses. The Bank is providing Lady Duffer
in Hospital its marketing expertise and access to its customer base for fund raising
campaigns. The first of the fund raising campaigns was a Flyer sent out to banks Karachi
customer base generating Rs. 200,000 worth of donations. The Bank has committed to
match the customer donations up to a maximum of Rs. 500,000.


Citibank had earlier pledged a donation of $ 100,000 i.e. over Rs. 40 lacs, to be paid over
three years towards assisting LUMS with the funding of their Students Aid Programme.

Chapter: No: 4

Personal Observation and Recommendations

I spend whole of my six week internship period in the collection department which
consist of Front End, Mid Range, and Hard Core. Following is the detail of my working
in these sections:

Front End

 Making the low risk calls, the main purpose of which is to reminder the card
customers about their dues.
 Also I make the updation of records by using the different activity codes.
 Verification of cash book of TC’s and FC’s
 Check the cash entry that it is properly made in the cash register.
 Receiving return cheques from cards operation.
 Recording the entry of these cheques in the return cheques register.
 Also make entry in the computer.
 Inform card member about the return cheques.
 Filing cheques in safe files.
 In case, if cheque is received back by the client again update the system about
 Passed the client instruction to respective department.
 Verification of the field visit sheet and also check visits updation in system.

Mid Range

 Handling of return cheques.

 Handling of return mails (statements).
 Incase of change in address update in system.
 Visited clients with FC’s.
 Filling of cash slips in MIS.

Hard Core

 Printing of cancellation advice.

 Dispatching of cancellation advice.
 Handling of return cheques.
 Maintaining the records of accounts transfer for legal proceeding.


Citibank is well organized bank and operate efficiently in this competitive environment
so; it is difficult for me to identify only one main problem. But nothing is perfect in this
world there is always a room for improvement. According to my limited knowledge
improvement can be made in following areas:

 Behavioral problems among permanent and contractual employees.

 Job security.

 Lack of participation from the employees

 As major commission is performance based therefore employee can do everything

to get their commission.

 Senior employees ask juniors for their personal work during the office hours.

 Break down of system also disturb the banking operation.

 As there is performance base incentive system employees are under pressure

(stress) to perform best. In case of failure their earning will be affected.


Citibank is one of the oldest foreign banks operated in Pakistan from last 44 years prove
itself as the best and most prestigious bank in the banking industry. Due to low interest
rate prevailing in the economy bank shifted its emphasis towards consumer banking.
Bank has the effective advance technology which enhances its efficiency of operations.
This technology also provides bank competitive edge over its competitors.

Bank serves its customers by providing a wide range of quality products and services
such as credit card, loans, car financing, e-card, banking accounts. Hospitality and
personal banking is the distinct feature which prominent it among its competitors.

Bank considers its employee as the real assets and no hesitate to invest in human capital.
Bank has the efficient and competitive work force due to which it retains its position in
the market. Bank cares for its employee not only by providing attractive compensation
but also take the personal care of its employees.

In short, Citibank is the multinational bank with diversified strategies of delighting its
customers by providing the modern globally accepted products and services which suits
their financial needs conveniently.


 Permanent employees should treated contractual employees as a colleague and

also give them professional respect.

 Job security should be provided to enhance the employee satisfaction.

 In case of bad performance causes should be considered in order compensate the


 Senior employee shouldn’t ask juniors for their personal work. Senior
management should discourage this practice.

 Stress management course should be added in the presentation course of


 Steps should be taken to ensure the regular and efficient work of systems.


• Banking Survey of Pakistan 2006


• State Bank Statistical Data 2006