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Credit Management

The Bank of Khyber

Submitted to: Dr Burhan Ali Shah

Submitted by:

Iqra Safdar

BSBA-VII (B)

04151613058
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Table of Contents
Chapter 1-Introduction 3

1.1 Historical Background 3

1.2 Mission 3

1.3 Vision 3

1.4 Organizational Structure 4

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Chapter 1

Introduction

1.1 Historical Background

The Bank of Khyber was established through an Act of NWFP assembly called, “The
BOK Act, 1991, “passed in June 1991 the bank was formally launched on November 01, 1991.

The Bank of Khyber initially started as a provincial Bank and later declared as Scheduled
Commercial Bank by SBP in September, 1994.The initial paid up capital of the Bank was Rs.
153 million, which has now been raised to Rs. 1 billion.

1.2 Mission

The Mission of the BOK is to increase shareholders' value and provide excellent service and
innovative products to customers through effective corporate governance, friendly work
environment & contributing towards an equitable socioeconomic growth.

1.3 Vision

The vision of BOK is to become leading Bank providing efficient and dynamic
services in both Islamic and Conventional banking through expanded nationwide network.

.
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1.4 Organizational Structure

Organization

Board of Directors

Managing Director

Long Term Projects

Resident Directors AUDIT

Managing Committee

Banking Operation Personnel &

Division Establishment Division

Branch Operations Investment Department

Department
Accounts & Treasury
Department Information Technology
Deptt

Risk Management
International Banking Division
Department
Human Resource
Credit Department Department

Public Relation
Assets Management Department
Department

Marketing Department
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Chapter 2
AGRI FINANCE

2.1Tractor Loan Scheme

Demand Finance Facility for purchase of Tractors of all makes and Models of brand new
Tractors for agriculture and haulage purposes.

i. Loan period is up to 5 years with Quarterly installments.

ii. Down payment is at least 10% of the limit.
iii. Tractor will be jointly registered on the names of the Bank and the borrower and will be
comprehensively insured from a rated insurance company.
iv. Markup rate is linked with 3 Months KIBOR + 500 BPs Eligibility Criteria: Same as for
Sada Bahar zarai Loan Scheme.

2.2 Sada Bahar Zarai Loan

Finance Facility to finance short term On and Off Farm activities of the farmer.

i. On Farm financing includes financing for Farm Working capital requirements i.e.
purchase of Seeds, Fertilizer, Pesticides, for irrigation, labor and plough charges.
ii. Off Farm activities include working capital requirements for Dairy Farming, Poultry
Farming, Fish Farming and Apiculture etc.
iii. Loan period/ tenure will be 3 years.
iv. Markup rate is linked with 6 Months KIBOR + 500 BPs and Markup is recoverable on
half yearly and annual basis.
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2.3 Livestock Loan Scheme

Demand Finance Facilities are available for purchase of dairy animals for milking and fattening
purposes, purchase of farm machinery/ equipments etc.

i. Loan period is up to 5 years with Monthly/ Quarterly/ Half yearly installments.

ii. Markup rate is linked with 3 Months KIBOR + 500 BPs Eligibility Criteria: Same as for
Sada Bahar zarai Loan Scheme and adequate experience in the concerned field is
required

2.4 Dairy Storage Loan Scheme

Demand Finance Facility for Purchase of machinery/utensils/ chilling tanks etc for storage of
Dairy produce and construction of godowns/cold storage etc.

i. Loan period is up to 5 years with Monthly or Quarterly installments.

ii. Down payment is at least 10%. Markup rate is linked with 3 Months KIBOR + 500 BPs
Eligibility Criteria: Same as for Sada Bahar zarai Loan Scheme and adequate experience
in the concerned field is required

2.5 Dairy Marketing Loan Scheme

Demand Finance Facility for purchase of dairy marketing items such as Motorcycles, delivery
Vans, pickups, mini trucks, etc.

i. Loan period is up to 5 years with repayment in Monthly or Quarterly installments.

ii. Down payment will be 10% and the vehicle will be jointly registered in the names of the
Bank and the borrower.
iii. The vehicle will be comprehensively insured from a rated insurance company.
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iv. Markup rate is linked with 3 Months KIBOR + 500 BPs Eligibility Criteria: Same as for
Sada Bahar zarai Loan Scheme and adequate experience in the concerned field is
required.

2.6 Tube Well /Solar Tube well Loan Scheme

Demand Finance Facility for Installation of Tube Wells/ Turbine for utilizing underground water
for agriculture purposes, including cost of machine/generators/pipes/accessories/civil works etc.
Facility is also available for Conversion of existing tube wells to Solar Energy.

i. Loan period is up to 5 years with Monthly, Quarterly or Half Yearly installments.

ii. Down payment is at least 10% of the limit amount.
iii. Machinery and accessories will be comprehensively insured from A rated insurance
company. Markup rate is linked with 3 Months KIBOR + 500 BPs Eligibility Criteria:
Same as for Sada Bahar zarai Loan Scheme. In addition minimum own development area
requirement is 5 acres.