Report

2) Introduction
a. Introduction of Citigroup Inc.

Citigroup Inc. operating as Citi, is a major American financial services company
based in New York City, formed from the merger of Citicorp and Travelers Group
on April 7, 1998. According to Forbes Global 2000 in March 2007, it was the
largest company in the world. As of 2008 however, it has dropped out of the top
10 in Forbes. With total assets of US $2.2 trillion, as of December 2007. The
company employs approx. 358,000 staff around the world, and holds over 200
million customer accounts in more than 100 countries. It is the world's largest
bank by revenues as of 2008. It is a primary dealer in US Treasury securities and
its stock has been a component of the Dow Jones Industrial Average since
March 17, 1997. Its single largest shareholder is Prince Al-Waleed bin Talal of
Saudi Arabia, who has a 4.4% stake.
On December 11, 2007, Vikram Pandit was named Citigroup's CEO, while Sir
Win Bischoff was named chairman. Charles Prince, the Chairman and CEO, had
resigned on November 4, 2007. Between that time, Bischoff had served as
interim CEO while Robert Rubin was chairman of the board.
The bank has operations around the world but is primarily concentrated in the
US. It is headquartered in New York City, New York and employs about 203,000
people. The company recorded revenues of $40,152 million during the fiscal year
ended December 2006, a decrease of 4.8% over 2005. The net profit was $9,338
million in fiscal year 2006, an increase of 5.8% over 2005.
b. Introduction of Citibank
Citibank is a major international bank, founded in 1812 as the City Bank of New
York, later First National City Bank of New York. Citibank is now the consumer
and corporate banking arm of financial services giant Citigroup, one of the largest
companies in the world. As of March 2007, it is the largest bank in the United
States by holdings.
COMSATS INSTITUTE OF INFORMATION TECHNOLOGY JINNAH CAMPUS LAHORE 1

Citibank has operations in more than 100 countries and territories around the
world. More than half of its 1,400 offices are in the United States, mostly in the
New York City, Chicago, Miami, and Washington DC metropolitan areas, as well
as in California.
In addition to the standard banking transactions, Citibank offers insurance, credit
card and investment products. Their online services division is among the most
successful in the field, claiming about 15 million users.
c. History of Citibank
Citibank is established in June 16, 1812 two days before the out break of war
between the U.S.A and Great Britain. It was founded by a group of New York
merchants. They started their business with authorized capital of 32 million and
paid in capital of $800,000. The bank's first head was Samuel Osgood, who had
been the first United States Postmaster General. Subsequently, ownership and
management of the bank was taken over by Moses Taylor, a protégé of John
Jacob Astor and one of the giants of the business world in the 19th century.
During Taylor's ascendancy, the bank functioned largely as a treasury and
finance center for Taylor's own extensive business empire.
In 1865 the bank joined the U.S.'s new national banking system and became The
National City Bank of New York. By 1894, it was considered one of the largest
banks in the United States, and in 1897, it became the first major U.S. bank to
establish a foreign department. In 1913 it was the first contributor to the Federal
Reserve Bank of New York.
National City became the first U.S. national bank to open an overseas banking
office when its branch in Buenos Aires, Argentina was opened in 1914. Many of
Citi's present internation Shanghai, Calcutta and elsewhere were opened in 1901
and 1902 by the International Banking Corporation (IBC), a company chartered
to conduct banking business outside the U.S., at that time an activity forbidden to
U.S. national banks. In 1918, IBC became a wholly owned subsidiary and was

subsequently merged into the bank. By 1919 the bank had become the first U.S.
bank to have $ 1 billion in assets.al offices are older; offices in London.
In 1910, National City bought a significant share of Haiti's National Bank (Banque
de la Republique d'Haiti) which functioned as the country's treasury and had a
monopoly on note issue. After the American invasion of Haiti, it bought all of the
capital stock of the Banque de la Republique. The bank became the target of
criticism for what were considered to be monopolistic and unfair banking
practices. It initially did not pay the Haitian government interest on surplus money
that it deposited in the treasury, which was loaned out by City Bank in New York.
After 1922, it began paying interest, but only at a rate of 2% compared to the
3.5% that it paid to similar depositors. Economist and Senator Paul Douglas
estimated that this amounted to $1 million in lost interest at a time when Haiti's
government revenues were less than $7 million.
Charles E. Mitchell was elected president in 1921 and in 1929 was made
chairman, a position he held until 1933. Under Mitchell the bank expanded
rapidly and by 1930 had 100 branches in 23 countries outside the United States.
In 1933 a Senate investigated Mitchell for his part in tens of millions dollars in
losses, excessive pay, and tax avoidance. Senator Carter Glass said of him,
"Mitchell more than any 50 men is responsible for this stock crash.
In 1952, James Stillman Rockefeller was elected president and then chairman in
1959, serving until 1967. Stillman was a direct descendant of the Rockefeller
through the William Rockefeller (the brother of John D.) branch; in 1960 his
second cousin, David Rockefeller, became president of Chase Manhattan Bank,
National City's long-time New York rival for dominance in the banking industry in
America.
Following its merger with the First National Bank, the bank changed its name to
The First National City Bank of New York in 1955, then shortened it to First
National City Bank in 1962, and ultimately changed it to Citibank in 1976. By that
time, the bank had created its own "one-bank holding company" and had become
a wholly owned subsidiary of that company, Citicorp (all shareholders of the bank

had become shareholders of the new corporation, which became the bank's sole
owner).
In the 1960s the bank entered into the credit card business. In 1965, First
National City Bank bought Carte Blanche from Hilton Hotels. However after three
years, the bank (under pressure from the U.S. government) was forced to sell
this division. By 1968, the company created its own credit card. The card, known
as "The Everything Card," was promoted as a kind of East Coast version of the
BankAmericard. By 1969, First National City Bank decided that the Everything
Card was too costly to promote as an independent brand and joined Master
Charge (now MasterCard). Citibank unsuccessfully tried again in 1977–1987 to
create a separate credit card brand, the Choice Card.
In 1981, Citibank chartered a South Dakota subsidiary to take advantage of new
laws that raised the state's maximum permissible interest rate on loans to 25
percent (then the highest in the nation). In many other states, usury laws
prevented banks from charging interest that aligned with the extremely high costs
of lending money in the late 1970s and early 1980s, making consumer lending
unprofitable.
1998 Citibank Logo

Citibank was one of the first U.S. banks to introduce automatic teller machines in
the 1970s, in order to give 24-hour access to accounts
Citibank's major presence in California is fairly recent. The bank had only a
handful of branches in that state before acquiring the assets of California Federal
Bank in 2002 with Citicorp's purchase of Golden State Bancorp.
In 2001, Citibank settled a $45 million class action lawsuit for improperly
assessing late fees. Following this Citibank lobbied the Congress to pass
legislation that would limit class action lawsuits to $5 million unless they were
initiated on a federal level. Some consumer advocate websites report that
Citibank is still improperly assessing late fees.

In August 2004, Citibank entered the Texas market with the purchase of First
American Bank of Bryan, Texas. The deal established Citi's retail banking
presence in Texas, giving Citibank over 100 branches, $3.5 billion in assets and
approximately 120,000 new customers in the state. First American Bank was
renamed Citibank Texas after the take-over was completed on March 31, 2005.
It is hoped that with both California and Texas markets, Citibank can appeal to
both states' Latino population, and offer products on both sides of the border
through Citibank in the U.S., and Banamex (Citigroup's Mexican division) in
Mexico.
Citibank has operations in more than 100 countries and territories around the
world. More than half of its 1,400 offices are in the United States, mostly in the
New York City, Chicago, Miami, and Washington DC metropolitan areas, as well
as in California.
In addition to the standard banking transactions, Citibank offers insurance, credit
card and investment products. Their online services division is among the most
successful in the field, claiming about 15 million users.
In April 2006, Citibank struck a deal with 7-Eleven to put its automated teller
machine (ATMs) in over 5,500 convenience stores in the U.S. In the same
month, it also announced it would sell all of its Buffalo and Rochester New York
branches and accounts to M&T Bank.
It was announced on November 13, 2006 that Citibank would be the corporate
sponsor of the new stadium for the New York Mets. The stadium will open in
2009 and be called Citi Field.
On April 11, 2007, the parent Citi announces the following staff cuts and
relocations.[5] On 4th November, 2007, Charles "Chuck" Prince quit as the
chairman and chief executive of Citigroup, following crisis meetings with the
board in New York in the wake of billions of dollars in losses related to sub prime
lending.
Citi is reportedly losing $8–11 billion, several days after Merrill Lynch announced
that it too has been losing billions from the sub prime mortgage mess in the US.

Former United States Secretary of the Treasury Robert Rubin has been asked to
replace ex-CEO Charles Prince to manage the losses Citi has amassed over the
years of being over-exposed to sub prime lending during the 2002–2007 surge in
the real estate industry.
d. History of Citibank in Pakistan

Citibank has been operating in Pakistan since 1961 and has a highly respected
franchise through its successful delivery of innovative, high-quality banking
products and services to its clients. Citi has many ‘firsts’: including launching the
first credit card in Pakistan, pioneering Consumer Asset financing and introducing
the first 24 hour, 7 days a week call centre. Citibank has been at the forefront of
the financial sector reform process and has been the lead bank in taking the
Government to international capital markets, including issues of the first Foreign
Currency Sukuk, the first 30 year US Dollar Sovereign Bond and the first equity
offering in over a decade. Citibank is also a leading bank in Pakistan for
delivering Export Agency and Multilateral financing and have been instrumental
in the development of Pakistan's market for derivatives and other treasury
products. Citibank has over 1100 employees in Pakistan, it operate through two
major business lines; Global Consumer Group and our Markets & Banking
business, providing a variety of services to more than 200,000 consumer and
corporate clients respectively. Citibank have steadily expanded our network over
the last two years and now have 23 branches and 39 customer contact points
across 10 cities in Pakistan.

e. Mission Statement
The mission of Citibank is to provide financial services to the customers based
on quality and quantity products and Citibank is always ready to do innovative
banking.
f. Vision
"To be the most comprehensive financial services provider”
g. Core values of the Citibank

The Values that will drive our Mission, Vision and Culture
• Integrity
• Passion
• Entrepreneurship
• The pursuit of excellence
h. Working environment of Citibank

At Citi, we believe that working to promote environmental and social
sustainability is good business practice. As a global corporate citizen, we view
sustainability issues from both a risk and an opportunity perspective. We analyze
the potential impacts of our business activities and take action to reduce
environmental risk and impact. We also look for opportunities to make
sustainable investments and develop products and services with positive
environmental and social impacts.

3) Business Structure
a) Departments of Citibank
Corporate Bank
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. Companies in their
client base 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 and
transnational network.
Financial Institutions
Through dedicated Relationship Managers, the Financial Institutions Group (FI)
at Citibank is dedicated towards developing relationships with financial
institutions to service their financial intermediation needs worldwide. Citibank has
one of the largest correspondent banking networks which combined with their
global presence and advanced technological systems makes us the premier
correspondent bank.
While systems and technology are an important component of global banking,
their business relies on the strengths of the people dedicated to meeting your

needs. With this in mind, they have organized around what they call "local/global
team" a group of Citibankers who work closely together to provide you with
seamless delivery of financial solutions in your own markets, as well as globally.
This team includes local relationship managers, account managers at major
financial centers and client services and trade services representatives. Their
goal is to ensure that, when you deal with any Citibank center worldwide, you
receive the same level of personalized, high quality service from individuals who
know you and your business
Trade Services
The new opportunities created by today's global markets also present complex
challenges. Different regulations and trading practices, different languages and
time zones, all must be accommodated before trade transactions can be
successfully completed. This complex environment demands that importers and
exporters anticipate foreign exchange volatility, political developments and
changes in the financial markets in order to achieve their business objectives.
Citibank is a world leader in providing trade services. Their unrivalled network of
offices in 100 countries gives you direct access to local expertise - even in
restrictive or volatile emerging markets - to ensure that all documentation,
payment and administration related to shipments is handled carefully, efficiently,
and in accordance with regulations.
Because of their long-standing presence in many markets around the globe, they
have strong relationships with the local financial and corporate communities.
Their in-depth knowledge in these markets frequently enables us to take a
realistic view of specific country risks and to add to their confirmation where other
banks may be more risk averse.
Further, they can act as an intermediary, advising you on trade flows and acting
to ensure that your business transactions are satisfactorily completed.
As no two trade transactions are alike, you will want to find a banking partner
who can provide innovative solutions and is sensitive to the complexities of each

transaction. Citibank offers a full range of documentary letter of credit services as
well as discounting and reimbursements to support any or every part of your
trade transaction. Experienced personnel use their specialized expertise to
innovatively structure your trade transactions and process your daily trade
transactions, and have end-to-end responsibility for your letters of credit,
reimbursements, negotiation of documents, and inquiries. They also handle
export guarantee transactions and government donor flow intermediation.
Each solution is tailored to meet your specific business objectives. By combining
knowledge about your requirements with their own expertise in trade and your
industry, they ensure you receive a solution that directly addresses your business
objectives.
Clearing Services
Citibank offers a complete range of services to settle your high value financial
transactions on a daily basis. Through direct participation in all major cash
clearing systems, Citibank has created a uniquely efficient environment. By not
relying on intermediary banks or networks, they retain greater control over the
execution of transactions, enabling us to guarantee consistent processing of your
clearing traffic.
The combination of financial strength, on-the ground expertise and service
quality gives Citibank an unmatched presence, and, in turn, an unrivalled ability
to handle your high-value, time-sensitive payment needs.
Collection Services
Even though the digital age has eliminated much of the paper involved in the
world's payment systems, checks remain an integral part of any bank's payments
service. Citibank offers services to streamline the handling of these checks,
speed up the delivery of value to you and your customers, and integrate checks
into the electronic interbank systems as much as possible.

Commercial Payment Services
Citibank's US Dollar Commercial Payment solution set provides financial
institutions with international commercial payments offering that enables you to
better serve your clients.
Through the automation of transactions, costs and errors have been significantly
reduced. For US dollar transactions, Citibank has one of the highest straight-
through rates in the industry.
Liquidity Services
Financial Institutions are increasingly looking for liquidity management solutions
such as pooling, concentration services and investments. This enables
international bankers to better manage their global account balances in order to
maximize returns and minimize foreign exchange risk. Citibank has long been
recognized as a leader in liquidity management solutions and continues to be at
the forefront, offering solutions tailored to meet the ever-changing demands of
today's international banker. Citibank's automated processes capture and deliver
various levels of information, ensuring that you have access to the details you
require regarding your global account positions. Whether you need a local
liquidity management or a regional treasury management solution, Citibank's
products provide the tools you need to implement an end-to-end liquidity
management process.
Treasury
In an exceedingly volatile economic environment, Citibank's Treasury department
emerges as a leader in the local interbank market, as well as the institution of
choice amongst importers and exporters, by providing superior treasury products
to its clients. Apart from dealing in Foreign Exchange (FX) and Money Markets,
the Interbank desk participates actively in all Central Bank operations, including
T-Bill Auctions and Open Market Operations.

The Treasury Marketing Unit (TMU) has been designed to serve the needs of
corporate customers. With the recent deregulation in the foreign exchange
market and the resulting increase in volatility, Citibank has tailored its products to
cater to specific customer requirements by providing unmatched service and
customized hedging options
Cash management
Corporate and financial institutions are constantly faced with practical problems
of handling and collecting cash under various diverse regulatory, political and
cultural environments.
Cash management is a core business for Citibank. Commitment to service
quality and an ability to adopt new technologies are the components of Citibank's
Cash Management strategy. Citibank’s experience in the local Pakistani market
along with their ability to provide global solutions enables us to offer a full range
of cash management products and solutions. These products are aimed to help
maximize resources while providing you with value-added solutions to meet your
needs.
Citibank Pakistan offers its cash management products and services aimed to
improve the cash flow side of the business and operations. Citibank also focuses
on delivering time critical information to directly impact the business efficiency.
Through its elaborate product offering, Citibank aims to:
• Manage the increasing complexity of cross-border and domestic payments
• Improve cash flow forecasting under a cost control environment
• Limit the exposure to risk associated with growth
• Enhance security of the cash flows and reduce the possibilities of fraud
• Improve overall working capital flows via adding efficiency to the overall
operations

CitiService
Citibank is commited to the prosperity & success of your company. They
understand that
for your company to perform at its best, your bank must support you with the
highest level of professionalism, efficiency, technology and service.
CitiService is an integrated customer inquiry line for after-sales service dedicated
to giving you easy access to accurate answers in the shortest possible time. In
today's environment, speed and accuracy are critical.
With CitiService, you only need to call one number. One number will put you
straight
through to a CitiService Officer who will be able to handle all your customer
service inquires on-line. If they can't give you an answer immediately, they will be
able to tell you exactly when you can expect a response and update you
regularly on your inquiry.

b) Organizational Hierarchy
A hierarchy is an arrangement of objects, people, elements, values, grades,
orders, classes, etc., in a ranked or graduated series.
Hierarchy of Citibank is given according to their ranks, then further hierarchy of
the departments that I have worked in are given.
Ranking of employees at Citibank Jail Road, EFU House Branch is given as
follows:
Senior Administrator Assistant (SAA)

Usman, Gohar, Azmat, Tariq, Maimoona, Rehman, Danish, Sajid, Kamran
Authorized Signatory (AS)
Shafiq, Naeem, Asif Anwar, Arif Siddiqui, Umaid
Assistant Manager (AM)
Mushfiq, , Sajjad Haider, Waseem, Mohsin
Manager (M)
Asim Gilani, Hashim, Mobeen, Saleem Samson, Ammad
Assistant Vice President (RVP)
Masood ul Haq, Nadeem Ahmad, Amjad Latif Mughal, Shahid Siddique, Khalid
Zaman
Vice President (VP)
Zubyr Soomro
This information is got from Kamran Zaidi SAA
Contractual Staff
Farhan, Suneel, Mehreen, Nadeem, Javed, Qadeer Khan, Ahsan, Zul qur Nain,
Sagheer, Yousaf, Qadir, Ammar, Saleem, Arif

c) The Detail of Branches of Citibank
In Pakistan there are total 23 branches, of which two are corporate while the rest
21 are consumer. A list of braches in Pakistan along with their cities is given
below.
Corporat
e Consumer Total
karachi 1 7 8
BANK PROFILE IN
Lahore 1 5 6
Islamabad 2 2 PAKISTAN
Rawalpind
Head Office: Karachi
i 1 1
Country Head: Zubyr Soomro
Multan 1 1
Faisalabad 1 1 NO. OF BRANCHES: 23
Sialkot 1 1
NO. OF EMPLOYEES: 1500
Hyderabad 1 1
Jhelum 1 1 Approximately
Gujrawala 1 1
Total 2 21 23
d) Divisions of the Citigroup Inc.
A. Global Consumer Group

• Citi Cards,
• CitiFinancial,
• Citibank
B. Global Wealth Management
• Citi Private Bank

• Citi Smith Barney
• Citi Investment Research
C. Citi Institutional Clients Group
• Citi Markets and Banking
• Citi Alternative Investments
4) Business Strategy
a) SWOT Analysis
SWOT Analysis is a strategic planning method used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or in a business
venture. It involves specifying the objective of the business venture or project and
identifying the internal and external factors that are favourable and unfavourable
to achieving that objective. The technique is credited to Albert Humphrey, who led
a research project at Stanford University in the 1960s and 1970s using data from
Fortune 500 companies.
Strengths
Attributes of the organization that are helpful to achieving the objective.
Strengths of Citibank are as follows:
• Home loan products has low interest rate as compared to other banks
• There is a huge variety of products and services
• Easy application is for applying for a credit card
• Citibank is very quick to give loan and card

• ATMs at Citibank are secure friendly and easy to access
• Citibank had the title of largest bank in world in 1981
• Thank you network cards program are good source of promotion for
Citibank
• Trust worthy bank with a positive 194 years old history
• Citibank’s brand name is itself a strength
• Companies in Pakistan prefer Citibank during international transactions
because it has branches all over the world
• Citibank acts as and aids financial institutions all over Pakistan
• Citibank has a brand loyal and very own credit card.
• Citibank provides online as well as physical training for its employees all
over world
• Data storage at Citibank is done for 10 years
• Citibank has more than 100 years experience in international lending field
• Citibank is the world’s largest credit card lender since 1970
• Citibank is working under the umbrella of Citigroup Inc. which is biggest
company in providing the financial services.
• Citibank is operating in more than 100 countries and have a wide network
of branches.
• Citibank is having cutting edge technology that gives it completive edge
over its competitors.
• It is providing diverse financial services almost in every sector.
• FI customer services are better than its competitors because of its strong
and timely follow ups for the quires from of its clients.
• There some special extra services for its clients i.e. Global Cash Letter
Service which is not being offered by its competitors.
• FI department provide free courier services for sending the export
documents to beneficiary banks

Weakness
Attributes of the organization that are harmful to achieving the objective
Weaknesses of Citibank are as follows:
• Citibank cannot do operations with SDN (Special designated nations),
since Iran is not in good terms with America, and is considered a SDN, so
despite Pakistan having good relations with Iran, Citibank Pakistan cannot
engage in any transaction or operation with Iran because Citibank is an
American bank.
• In Pakistan Citibank has a very poor network of branches which is
defaming the services of Citibank. Citibank has only 23 branches all over
the country, and only six in Lahore.
• Corporate and consumer are operated separately in case of Citibank.
• FI at Citibank is not providing all those services which are its competitors
are providing.
• Citibank has negative repute due its association with the America.
• Being the pioneer of many financial services Citibank has a wide base of
customer but they are managed poorly because poor infrastructure.
• Citibank has a high error rate as compared to other banks and no
customer service
• Online banking website has limitations and is not good when compared
with other banks
• No matter how old a customer one is , but he dares default once and he is
in deep trouble
• Due to limited branches in country as well as in city, there can be long
lines sometimes.
• Rigid and unyielding rules and processes
Opportunities

External conditions that are helpful to achieving the objective.
Opportunities that Citibank can avail are as follows:
• There is a lot of cushion available for Citibank in terms of expanding its
network of branches up to 100 but all this depends on stability of the
Pakistan economic and political situation
• The opportunities available for Citibank are financing to SME’s (Small and
Medium Enterprises) in Pakistan.
• Citibank can also look for small account holders
• After successful opening of Citibank branches in Gujranwala and Sialkot,
Citibank is thinking over opening branch in Gujrat.
• Citibank has an opportunity to merge with some other bank to increase the
number of its branches in Pakistan.
• FI department of Citibank is looking for more agreements with up coming
banks i.e. Mazan bank. NIB, Dubai Islamic Bank, Al- Habib, Habib metro.
Threats
External conditions which could do damage to the business's performance
Threats that could effect Citibank in negative way are as follows:
• According to State bank of Pakistan, every bank must have at least 100
branches in Pakistan, if it is to continue its operations. Citibank has only
23 branches.
• Day by day competition is increasing not only of the expansion of the
banks but also due to the launching of the new bank in the market e.g.
Barclays.
• Being an American entity the local people and organizations are reluctant
to work with Citibank Pakistan.
• Circumstances of Pakistan are a great threat for the existence of the
Citibank.

• More and more banks are launching there operations in Pakistan which is
increasing competition for the FI department of Citibank.
5) Marketing
Citibank is one of the leading banks currently operating in Pakistan. Since it isn’t
the only multinational bank in Pakistan, so environment that it is residing in
consists of perfect competition. Main competitors of Citibank are Standard
chartered bank, Royal bank of Scotland (ABN AMRO), American bank, HSBC
bank and many more. Arrival of some new banks like Barclays is a major threat
too. We know that Barclays broke most of the staff of Citibank and recruit them,
giving them handsome packages. So Citibank needs to be very sharp in the
current environment it is residing in.
a) Technology
Technology plays a vital role in today’s world. A company driven by better
technology compared to its competitor is having a competitive edge and it my
even result in quite bigger generation of revenues.
Citibank operates as an online bank. It has many technology driven products,
which include Online banking, ATM, Credit cards, Phone banking and also the
international transactions that it does through SWIFT.
Also it has done a contract with DATA TECHNOLOGIES that will electronically
store Citibank’s data.
b) Target Market
Citibank captures a great market. Its customer belongs to every group, whether it
be demographic, social or financial
Currently Citibank has divided its market into three categories
Three main divisions of Banking at Citibank Pakistan

• Retail or Consumer Banking

• Commercial Banking
• Corporate banking
I. Retail Banking
Retail banking deals with the individual customers and handle there accounts
and provide rest of retail banking services.
II. Commercial banking

can also refer to a bank or a division of a bank that mostly deals with deposits
and loans from corporations or large businesses, as opposed to normal
individual members of the public.
III. Corporate Banking

Corporate banking refers to only dealing with giants in different sectors.
• Nishat Textile
• Azgard-9
• Banks
c) Market Mix
The marketing mix is generally accepted as the use and specification of the four
Ps describing the strategic position of a product in the marketplace.
Citibank may adapt to marketing mix to reach its target market. Marketing mix
compromises of following things
A. Product
B. Price
C. Placement
D. Promotion
Each of the element is discussed separately in full detail.

I. Product
An object or a service that is mass produced or manufactured on a large scale
with a specific volume of units
Products or services that Citibank provides are as follows:
Citibank Debit Card:
It is safer than carrying cash, has your signature for easy identification, and
allows you to define your monthly purchase limit. You can even opt for a Photo
Debit Card for added security
Citibank Gold Credit Card
The Citibank Gold Credit Card is specially designed for you, your exclusive life
style and your special needs. As a Gold Credit Card member you enjoy a higher
Credit Limit throughout the world. If you have a monthly income of Rs.50,000 or
above, and you are a Pakistani citizen, then you are eligible to apply for a
Citibank Gold Credit Card.
Citibank Silver Credit Card
The Citibank Silver Credit Card brings you the convenience and financial
flexibility you 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 mind. If you have a monthly income of Rs.16,000 (Rs 8,000
for selected corporate employees) and are a citizen of Pakistan then you are
eligible to apply for a Citibank Silver Credit Card.
Citi Mobilink Credit Card

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15% Discount for Gold Cardmember
15% Discount for Gold Cardmember
Citibank Caltex Credit Card

Drive Points: More Rewards, More Value. Enjoy up to 5 Drive Points “Accelerated
Reward Points” when you fuel up with your Citi Caltex Card.
Spend at Free Fuel
Caltex Value
Rs. 2,000 Rs. 40
Rs. 5,000 Rs. 250
Citibank clear card:
An extraordinary complimentary package filled with free gifts, & leading incredible
discounts on everything from dining to music to travel, & a whole lot more.

Summer Sizzlers:
To enter the draw:
• Every Rs.3000 spent in a month on your Citibank Credit Card will get you
one entry into the draw.
• Apply for and activate Citibank Credit Card to get one entry.
• Apply for and activate Citibank Gold Credit Card to get two entries
Citibank e-card:
Shop with peace of mind on the Internet through your Citibank E-Card!
As the first Internet Shopping Card in Pakistan, the Citibank E-Card is packed
with unique advantages for shopping on the Internet. This means convenience,
security, fabulous discounts and much more.
Citibank Shaheen Affinity Credit Card:
The Citibank-Shaheen Credit Card is the first Affinity Card in Pakistan, offered
exclusively to Pakistan Airforce 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 our Airforce personnel.
Smart Cash:
Withdraw cash from an ATM using your Citibank credit cards (As done with Cash
Advance) and call CitiPhone (111-222-222) to simply book the transaction as
Smart Cash.
Once the transaction is booked, customers pay a Smart Cash service fee and
can pay back the amount in monthly installments over 6, 12, 18, 24 or 36
months.
Citibank World Privileges:
Citibank Card members can now expect the recognition and advantages already
enjoyed locally and wherever you travel at over 40,000 outstanding

establishments spanning over 30 countries, across the world. From the great
benefits at the world's leading hotels, retail shops, restaurants, tourist attractions,
spas, golf courses and more, Citibank World Privileges ensures that Citibank
Card members are instantly rewarded for their discerning choice to use the
Citibank Card.
Debt Consolidation:
Why overburden yourself with all kinds of loans and pay high interest rates, when
you can transfer all your loans to Citibank at a much lower cost? With Debt
Consolidation by Citibank, you can pay off all your debts and save your money
too.
Own a Home:
Turn your dream home into reality. Purchase a home on low monthly installments
through simple hassle-free process
Health Forever
Life is all about being prepared. That’s why it is important to plan ahead for
emergency medical costs, so that you stay prepared for any eventuality. Health
Forever assures you of the best medical treatment, without having to bother
about the cost of the treatment or compromise on its quality.
Life Plus
Pre-approved life insurance worth Rs. 1,000,000 by American Life Insurance
Company (Pakistan) Limited.
Credit Shield Plus

Citibank Credit Shield Plus gives you total peace of mind by insuring you against
unforeseen emergencies concerning your Health and Life

Family Protection Plan
Express love for your family by ensuring their lifetime happiness & security. Get a
continued insurance cover for them with the Family Protection Plan by AIG.
Secure Wallet Plan

Citibank Secure Wallet Plan is the ultimate protection against loss, theft and
robbery.
Savings Plan
Life is full of uncertain events & commitments that require planning with
precision. As a responsible individual, you need to ensure that your Child’s future
is secured and savings preserved against the rising cost of financial obligation.
For this you need a plan that offers you both, savings and protection
Corporate Banking products
Loan products:
1. Short Term Financing:

To service our client's short term funding needs, Citibank offers a variety of
working capital financing facilities. In addition to standard Overdraft and
Demand Finance products Citibank offers various types of short term loans
and facilities which are tailored by our Relationship Manager to provide
maximum value to clients by meeting their needs and capabilities.
2. Advance against Merchandise ("AM") Facility

We offer AM facility to facilitate stock purchases and fund receivables. Clients
can draw funds as per need up to allocated limits.
3. Loans against Merchandise

Loans against Merchandise or Demand Finance is a short-term credit facility
with fixed maturity. Repayment of the loan is structured to correspond with
borrower's cash flows. Repayment can be bullet or in installments.
Deposit Mobilization Products:
1. Current Accounts
In line with the very nature of these accounts, no profit is offered on the
balances. The account holders are entitled for various special services,
including representation / approvals from State Bank of Pakistan / Regulatory
Authorities, etc.
2. Savings Accounts
The profit on our Savings Accounts is paid on the basis of a monthly minimum
balance on a biannual basis. There is no restriction on withdrawals and there
is no minimum balance requirement.
3. Call Deposits
We offer 5-29 days Call Deposits for amounts of over Rs. 10 million. The
rates are market driven and no withdrawals can be made without due notice
in writing.
4. Term Deposits
We also offer fixed deposits of 1 month, 3 month, 6 month, 1 year, 3 year and
5 year tenors. Profit is paid at the maturity of the deposits. Rates of profits are
announced on a monthly basis.
5. Repos
To let the customer take the advantage of market rate movements, we
structure one-off repurchase deals for our clients against Government

Securities. This is not a product we offer regularly (the product is not available
for saving account holders), but from time to time, exceptions are considered.
There is a Master Repo Agreement, which must be signed by the client before
entering into a transaction. Rates are decided at the time of the transaction.
The transactions are letter-based, i.e. the securities remain in the custody of
Citibank N.A.
6. Special Deposit Categories

• Payroll Accounts
This is a special Savings Account that earns a higher rate of profit than
our regular Savings Accounts. Only employees of companies that have
their accounts with Citibank N.A. and disburse salaries into these
accounts are eligible. Please note that these accounts are separate
from the Company's Accounts, which will earn a rate based on the
applicable PLS slab.
• Employee Benefit Accounts

We also offer a special term deposit product for Registered Pension,
Provident and Gratuity Funds. Only registered funds are eligible, and
there is a minimum balance requirement of Rs. 25 million. In this
category, deposits for the tenors of 3, 5 and 7 years are offered. The
rates are declared at the beginning of each month.
II. Price
The price is the amount a customer pays for the product. It is determined by a
number of factors including market share, competition, material costs, product
identity and the customer's perceived value of the product. The business may
increase or decrease the price of product if other stores have the same product.
Pricing of Citibank products are as follows:

Cards
With Citibank Credit Card you have a free credit period of up to 50 days to pay
for your purchases. You can either pay the entire amount that is reflected in your
statement, or the minimum amount which is as stated below:
• A customer will have to pay full amount if the current balance is up
to Rs.200
• In case the current balance amount is more than 200 then the
customer will pay Rs.200 or 1.60% of such current balance amount
which ever is higher.
• In addition to the above stated amount, the following charges/fees
(all or those applicable) will also be a part of the minimum payment
amount.
o Service Fee
o Monthly installment of a subscribed installment plan
o Any amount spent over and above the credit limit of the
credit card
o Amount of the unpaid/outstanding minimum payment
amount due in the previous month(s) date
o Late payment fee
o Cheque returned fee
If you pay the Minimum Payment amount or any amount less than the Current
Balance by the payment date, then for retail transactions which can be covered
by the payment, service fee is charged from the transaction date to the payment
posting date. For retail transactions that are not covered by the payment, Service
Fee is charged from the transaction date to the date the next statement of
account is generated.
Home loans

You can pay back your loan in easy and affordable monthly installments spread
over 1 to 20 years, depending on the type of loan being transferred to Citibank.
Citibank offers you the option to choose a mark-up structure that suits your
needs. we offer two types of pricing options:
Adjustable Rate (1 Year Floating Rate )
• For the current month, mark-up rate for 1-year floating rate on
Mortgages is 15.44% - 17.94%*
• In the Adjustable Rate Home Loan, the mark-up rate of the loan is
based on the 1 year Treasury Bill rate. The rate of mark-up is fixed for
12 months and subsequently revised every 12 months in line with the
movement in the Treasury Bill rates, i.e. if the T-bill rates move down,
your mark-up decreases and vice versa.
Flexi Fixed Rate ( 3 Year Floating Rate )
• For the current month, mark-up rate for 3-year Flexi-fixed rate on
Mortgages is 19.01% - 21.01%*
• In Flexi fixed rate Home Loan, the markup rate is based on the 3-year
PKRV rate. The markup rate is fixed for 36 months from the time of
loan booking and subsequently revised 36 months in the line with the
PKRV rate prevailing at the time of renewal of loan.
III. Place
Place represents the location where a product can be purchased. It is often
referred to as the distribution channel. It can include any physical store as well as
virtual stores on the Internet.

• Your Citibank Credit Card can be used at 5000 establishments in Pakistan
and over 24 million locations worldwide. This gives you convenience,
recognition and security wherever you are. Whether you spend in Dollars
or any other currency, all your billings will be in Pak Rupees.
• You can obtain cash advance at more than 700,000 ATM's and financial
institutions worldwide displaying the Visa / MasterCard logo.
• Citibank Visa Card members can obtain Cash Advance at ATMs displaying
the PLUS logo which is also printed on the back of the Visa Card.
• Citibank MasterCard holders can obtain Cash Advance at ATMs displaying
the CIRRUS logo which is printed on the back of the MasterCard.

• Citibank Visa Debit Card is accepted at all VISA merchants having
electronic terminals, in Pakistan and around the world.
• Your Citibank Debit Card can be used at more than 10,000 establishments
in Pakistan and over 22 million locations worldwide. This gives you
convenience, recognition and security wherever you are. Whether you
spend in dollars or in any other currency, your billing will be in Pak
Rupees.
• Through SpeedCollect Citibank offers cash deposit as well as due and
post-dated check collection services at over 250 locations all over
Pakistan, through special arrangements with their correspondent banks.
Regardless of where a payment is made, Citibank has a sophisticated
monitoring system in place to track and consolidate the payments
IV. Promotion
Promotion represents all of the communications that a marketer may use in the
marketplace. Promotion has four distinct elements - advertising, public relations,

word of mouth and point of sale. A certain amount of crossover occurs when
promotion uses the four principle elements together
Citibank offers handsome discount on purchasing from following outlets. It is

applicable on Gold, Clear & Silver Cards.
Shopping
• Bonds Travel
• EBCO
• D.Watson Stores
• AVIS
• Centra Flora
• Nestle
• Irfan Sports
• Chen One
Books & Magazines
• Liberty Books
Restaurant
• Subway
• Pizza Hut
• Cafe Zouk
• Royal Orchid
• Sichuan

• Red Onion
• Vivo Cafe & Grill
Jewelry
• Almas Collection Jewellers

• Real Jeweler
• Motiwala Jewellers
• Libra Jewellers
Electronics
• Samsung
• Hewlett Packard
• Honda Generators
• Auto 1
• United Mobile
Apparel
• Circuit
• Axxezz
• Studio S
• Cotton & Cotton
• Amir Adnan
• FNK Asia
• HangTen
• Mothercare
• Benetton
• Sanaullah
• Clarks

• Adidas
• Puma
• Rica Lewis
• Slazenger
Your Citibank Credit Card brings you special promotions from time to time
through the Smart Installment Plan at 0% service fee. This provides you the
flexibility of making high-value purchases on your Citibank Credit Card and
paying them back in equal monthly installments with no extra fee. Your Citibank
Credit Card gives you extra value for your money. For every Rs. 50 that you
spend on your credit card, you earn one Rewards point. Your accumulated points
are shown in card statement you receive. The more you charge on your card the
more points you collect. These points can be redeemed for exciting gifts from the
citibank rewards catalogue. Choose from a wide variety of gifts from Citibank
exclusive merchandise to Free Airline tickets.
Other promotions by Citibank;
• Now you can make payments for your phone bills over the phone. No
more standing in long queues, no more waiting.
• Be it your PTCL or mobile phone bill, all you need to do is call CitiPhone
Banking at 111 222 222 to make payment. You can even pay phone bills
for your family and friends.
• And every transaction earns you Reward Points which you can exchange
for exciting gifts
• The Fraud Early Warning System is a unique system that continuously
monitors transactions on your Citibank Credit Card to prevent fraudulent
use. In case of any suspicious transaction occurring on your account
which is not in the line with your normal usage patterns, we will give you a

call on a best-effort basis to confirm whether the transaction is genuine or
not.
6) Financial Analysis
Financial analysis refers to an assessment of the viability, stability and
profitability of a business, sub-business or project.
It is performed by preparing reports using ratios that make use of information
taken from financial statements and other reports. These reports are usually
presented to top management as one of their bases in making business
decisions.
a. Ratio analysis
The ratios of Citibank are as follows:
Profitability ratio
Margin of ratio:
Net Profit
= ------------------------------ x 100
markup/Interest/Return Earned
2006 = 929887 x 100 = 18.96%

4904238
2005= 1085636 x 100 = 30.16%
3599415
Profit is decreasing which shows a negative sign that the profitability is

decreasing but there is a good sign which show that there is increase in revenue
but it is decreased just due to increase in expenses.

Return On Deposits:
Net Profit
= --------------------------------- X 100
Total Depostits
2006 = 929887 x 100 = 1.47%

63103884
2005= 1085636 x 100 = 2.04%
53115538
As return on deposits is decreasing it is not favorable trend. This shows that the
profit margin on deposits is decreasing with increase in deposits the profit has
not increase but the total deposits increased with a greater proportion.
Return on equity is much increased in 2004 than the previous year, which
indicated beneficiary effect to the shareholder.
Advances to Total Deposits:
Advances
= ---------------------------
Total Deposit
2006 = 51289271 = 0.81

63103884
2005= 39163339 = 0.74
53115538
As deposits show an increase, the advances also increased. Bank is now
providing the advances and loans to more customers as compared to previous
year. This shows an increase in area of activity of bank.

Solvency Ratio
Return on Total Assets:
Net Profit After Tax

= --------------------------------------- X 100
total Assets
2006 = 929,887 x100 = 1.01%

91316438
2005= 1,085,636 x 100 = 1.42%
76,473,641
Return on total assets decreased in 2006 which is unfavorable for bank. This
shows that assets have increased but the net profit is not increased with that
speed.
Debt Ratio
Total Liability (Other than Equity)

= ----------------------------------------------------------------
Total Assets
2006 = 85287932 x100 = 93.39%

91316438
2005 = 70767931 x 100 = 92.54%
76473641
The increasing debt ratio shows the increased share of debt in total assets as
compared to owner’s equity. The higher the share of the debt lesser will be the
secure financial position.

b. Balance sheet and income statement analysis:
The balance sheet has shown a good sign that cash and balances with the
treasury banks has decrease from 8,383,947 to 5,881,934 which is not a good
sign for a bank the balance with the other banks has also increased from the
previous year which is not showing a good sign that it has increased to 2,975,916
from 729186 which is 3.25%. Lending to financial institution has also decreased
from 4,796,504 to 3,831,005.the investments and advances have dramatically
increased which shows a good sign for a bank. The bank has performed well in
the current year that operating fixed asset, other assets and with this the overall
assets has increased which is showing a good sign that the bank has enough
assets.
Now we will discussed the liabilities and equity section of the balance sheet the
liabilities have important effect on the balance sheet. The bills payable has
decreased this year from 1,436,826 to 1,212,275 which is a very good sign that
the company has decreasing its payables, but the borrowings from the other
banks have increased with a speed and increased up to 16.87% from the
previous year. The deposits and the other accounts have increased which is
showing a good sign that the people are willing to do business with the bank and
the bank has increased their deposits by 1.2 times more than the previous year
which shows good sign. And the net assets have increased form the last year
with the increase of 1.1 times more than the previous year.
Now we will discuss the income statement.
The income statement of the bank has shown goods signs first of all we will
discuss net markup interest income which is the income of the bank. In that we
have seen an increase which is a good sign the income is 1.36 times more than
the previous year. In the income statement we will see a good increasing trend in
the income section that the income has increased. Net Mark-up/ Interest Income
after provisions has also increased to 1.32 times in the previous year the Net
Mark-up/ Interest Income after provisions is 2972465 and this year it has raised

to 3949029. But we have seen that there is slightly slower increased in Total non-
mark-up/Interest Income as it is compared to the net mark up interest income it is
because that Fee, Commission and Brokerage Income, Dividend income, Income
from Gain on sale of securities dealing in foreign currencies, Unrealized gain on
revaluation of investments classified as held for trading has increased which has
decrease the Total non-mark-up/Interest Income.
When we are seeing the expense section we will notice that the expenses has
slightly increased from the previous year which is not showing good sign we will
see that the administrative expense has increased more. The taxes has slightly
increased due to increased in the income section and the earning have been
dramatically increased when it is compared with the last year.
7) Human Resources
term with which many organizations describe the combination of traditionally
administrative personnel functions with performance, Employee Relations and
resource planning.
Human resource at Citibank serves these key functions:
1. Selection
2. Training and Development
3. Performance Evaluation and Management
4. Promotions
5. Industrial and Employee Relations
6. Record keeping of all personal data.
7. Compensation, pensions, bonuses etc in liaison with Payroll
8. Confidential advice to internal 'customers' in relation to problems at work &
9. Career development
You want a career where the opportunities never sleep. Business owners want
funding to pursue their vision. Governments are investing in alternative energy
sources. Corporations and entire industries are growing,merging and developing.
As people pursue their aspirations, our world is enriched. Which is why while

turning dreams into realities for our millions of clients worldwide “Citi never
sleeps”. With their breadth and depth of work, you won’t just realize your
ambitions: you’ll exceed them
Citi’s businesses and employees in Europe, Middle East and Africa (EMEA) are
an integral part of the pre-eminent global financial services company, which has
some 200 million customer accounts and does business in more than 100
countries. They provide market-leading products to consumers, corporations,
governments and institutions including retail banking and credit, Markets &
Banking, insurance, securities brokerage and asset management. Citi’s activities
in EMEA span 54 countries and date back to the 19th century.
Citibank is committed to attracting, challenging and rewarding the top
professionals in financial services and to creating an environment in which
employees realize their maximum potential. They reward people based on
performance standards which are aligned with their business objectives and long
term goals. The various training and development tools at Citibank assist their
employees to be fully effective in their jobs and long term careers. Opportunities
at Citibank offer a wide scope of learning and development while providing with a
perspective which is attuned to the global markets while catering to the local
environment.
Whether you are still at your studies, have graduated or ahead in life on a career
track already, there could be challenging opportunities at Citibank to suit your
ambitions. Submit your resume for current positions being offered at Citibank or
become part of exciting employment opportunities in the future for internships,
entry level, junior level and executive positions.
To work at Citibank you need to be hard working, intelligent and focused. You
should be a self confident individual able to accept challenges and respond well
to people and pressure. Most of all, you must be professional.
a) Internship programs

Citibank encourages responsibility at an early stage of your life. The options we
offer young students are vast and enriching while maximizing learning within
various functions of the business. All positions and programs are supplemented
with coaching, feedback and on-the-job training. Our programs will help you in
evaluating future career possibilities with the world's largest financial services
center.
Our Internship Programs are designed to provide students interested in a career
at Citibank, the opportunity to spend 4 to 8 weeks working with us. Graduates
completing their first year of studies and bachelors completing their second year
are eligible to apply for the program. This is the perfect opportunity for aspiring
students to learn more about careers in the financial sector while allowing us to
get to know you better for future job offer.
b) Job Offerings
Job offers and long term assignments are offered to students based upon their
potential and contribution to the business factors reviewed during their
internships. You are invited back to the selection committee to assess your
capabilities further once you graduate.
8) Learning as a student intern

I did an internship of eight weeks at Citibank, Lahore. Citibank is situated in EFU
House, Jail road. Since it was my first experience as an intern in any
organization, it was as exciting, joyful, tough, memorial, unique experience of my

life as one could think of. I started my internship from 2 nd of July (since 1st July
was a bank holiday) and it lasted till August 28.
I spent my first three weeks as an intern in Clearing Department, then the next
two weeks simultaneously in General Internal Services and Financial Institutions,
and last three weeks in Trade support Unit.
Now I will give a detailed explanation of what I have actually learned there as an
intern.
a. Clearing Department
There are two types of clearing, which are as follows;
Inward Clearing:
These are items which are drawn on us and payment
against which have to be made to other banks by us.
For example, a person A gives a check of Citibank to a person B, now B takes
that check to some other bank and gets it cashed. That bank gives B the required
cash and in return asks Citibank to make a payment of equal amount.
Inward clearing amount is debited i.e. paid, however, if check is returned for
some reason mentioned before then the payment would be reversed.
Process of Inward clearing:

Previously under the heading of inward clearing we get to
know the definition of inward clearing i.e. what really is inward clear. However
now we will go through the process of Inward clearing.
First checks are received from NIFT, we sort checks on the basis of products i.e.
if they re of credit card, or of collection etc. then that they are reviewed and after
reviewing them, checks are sorted into two categories i.e. GF and GCE. GF
stands for Global Finance and represents the corporate checks, where as GCE
stands for Global Consumer and represents the consumer checks. After that the

checks are verified, we see the date of the check and also see if there is required
stamp on the check.
After checks are verified, they are entered into their respective systems
i.e. for GF we use Flex, and for GCE we use Systematic. Now if a check is OD, it
is sent for approval from CMG department, and if the check is of amount more
than Five Lac, then an attrition note is made. That note is mailed to all RM
(Relationship manager). After that entries are made, and they are transferred to
Authorized signer for authorization of entries of the respective bank system. If
they are ok they are authorized, otherwise their entries are deleted from the
system and they are returned. The process is then repeated from start.
For those which are authorized are sent for scanning. At the end of the
day return entries are done into register of inward clearing.
Outward Clearing:
These are items, payments against which have to be taken
from other banks.
It is opposite to that of Inward clearing. For example, a person A gives a check of
some other bank to a person B, now B takes that check to Citibank and gets it
cashed. Citibank gives B the required cash and in return asks that respective
bank to make a payment of equal amount.
Process of Outward clearing:

First different branches of Citibank receive checks from
customers. These branches then send these checks to CSU (Central Support
Unit). Here checks are counted physically and then they are separated from their
deposit slips. After detaching them, they are signed and stamped. Then they are

sent to GIS for scanning (previously microfilming was done, but these days
checks are scanned). After scanning, tape balancing (Taping is actually the sum
total of amount of checks) of checks is done. Final slips that are detached from
checks are filed, and the checks are sent to NIFT. Large deposit sheet for
department is made for checks whose amount is greater than One Million. In the
end checks are verified and authorized by the Authorized Signer and deposit
slips are stored.
If check of Citibank comes to Citibank, then either it is crossed or else of Cash

payment.
1. If it is crossed, it can only be transferred to another account.
2. If it is not crossed, then cash is paid in the case.
In such case it does not come to the clearing department.
Mc and DD:
MC stands for Managers Check, and DD stands for Demand drafts.
Mc and DD are confirmed payments, because they are paid when the amount is
debited from ones account into other account. So OD (Over Draft) of MC or DD is
out of question.
MC are for Lahore, where as DD are for other cities like Karachi and Islamabad
etc.
They are arranged with advices which infect are the copies of the original MC
and DDs.
After that the original along with the advices are stamped.
Two Stamps are used,
• Simple Paid Stamp
• Signature verification Stamp
Beside them, a couple of checks are also called MCs.
These are of two types;

When bank gives loan to consumer, against that, it issues a check. These are
usually pink in color.
The second one is given, when consumer uses credit card, two slips are
issued, and both of them are signed by the customer. The shop keeper gives one
slip to consumer and the other slip to bank, against which Bank issue a check to
shop keeper. These are usually yellow in color.
BUNDLE COVER:
In it bank branch (which is infect the serial # of the bundle
cover) is written along with number of instruments (number of checks inside a
bundle), total amount in Pakistani Rupee, coding stamp of Citibank for e.g. 46-
2000, and finally current date is written. This bundle cover clearing is attached
with tape (sum total of amount of all the checks inside a bundle).
Purpose of bundle cover is to keep a proof of checks, so that if any check
is missing we may know it, looking at the number of instruments or tape.
The Bundle cover is sent to NIFT (National Institutional facilitation
technologies). NIFT acts as a middle man between banks and SBP (State bank
of Pakistan).
RETURNING CHECKS:
Returning checks to the branches (check is returned
to the branch who issues it) could be of number of reasons.
There can be a number of reasons like
• Signature difference

• Check irregularly drawn
• Post dated
• Insufficient funds
• Amount in words/figure differs
• OD (outstanding draft)
• Payment stopped by drawer
A statement consisting, the reason why check is returned is attached with the
check. At the end of the day the reasons along with the check number is written
down in the register.
Advices:
Mc and DD are confirmed payments, because they are paid when the
amount is debited from ones account into other account. So OD (Over Draft) of
MC or DD is out of question.
When an Advice (copy) of respective MC or DD reaches Citibank, it is a

proof that the amount has been transferred. These advices are infect evidence or
proofs of payments, and are stamped respectively with their respective MC or
DD. Another thing is that when we are arranging advices and if we do not find an
advice, then before copying that particular advice we have to check whether it is
payable at Lahore or not, because if it is not, then there is no need to copy it.
Credit Slip:
Credit slips come after one day, because it is policy of the banking sector.
Credit slips are discussed in detail in GIS department. In clearing department
entries are made in Systematic (would be discussed later).

When a customer gives a check, the bank gives him a deposit slip and another
slip is attached with the check.
It comes to clearance department, after clearance next day that slip is
credited by the clearance department.
Stamps used:
Clearance stamp tells that the check is cleared for processing for other
banks. It is adjusted for the next working day, for example, if today is 5/07/08
(Saturday), the next working day would be Monday i.e. 07/07/08, so clearing
stamp would be adjust for that date. It is to be noted that the clearing stamp
should not be on sign or amount or on codes (written at the bottom of check)
Also at the back of that check a payees account credited stamp would
be pasted, if the check is in the favor of a person and also because amount is
credited into customers account. However if the check is in the favor of bank, for
example bank has to receive payments like Loan receiving, interest and
installment etc. Then a Received payment stamp would be pasted.
Collection Checks:
In some cases checks come in collection. Collection checks are from other
cities. For example, if a person gives a check of Citibank in Sakhar at HBL (Habib
Bank Limited), where there is no branch of Citibank (in that specific city). So HBL
staff would tell that person that this check cannot go in local. They will put a
stamp of Payees account will be credit on realization on checks if they are in
favor of customer, and a stamp of Received payment along with Payees
account will be credit on realization if the check is in favor of Bank. After that
they will send that check to HBL Lahore, who will paste a stamp of Endorsement
Confirmed on the back of the check In the end Authorized person will sign the
stamp.
After it, HBL will send those checks to NIFT, who will then send it to Citibank N.A.

When these checks will reach Citibank N.A. a paid stamp would be pasted
on them, with current date.
Same Day Clearing:

Some checks are cleared on the same day, but for them
there are specific branches. It should also be noted that Same Day Clearing can
only be done if the amount to be withdrawn is more than Rs. Five Lacs.
Review of Mc:
They are valid for One year, unlike checks which are only
valid for Six months. However, MC are sometimes valid for certain period that is
written on it, for example, valid for 30 days etc. One has to check if there is
clearing stamp of the present day. If date is of past then we return it (we may also
change the date to current date, to prevent customer from suffering). Post dated
Mc is also returned.
Entries into System:
Entries are done into different systems depending on the
nature of the check.
Many banks use same system for making entries, whether it is corporate
or of consumer nature, but Citibank uses different systems for making those
entries.
There are two types of systems for making entries, which are as follows;
1. Flex
2. Systematic
Flex:

It is a system in which entries are done for corporate checks. It consists of
a GUI (Graphical User interface) and making entries into it does need thorough
understanding of the system.
For example, there is a box of account #, so simply account number would be
entered in it , then there would be a box of check # and amount so the respective
figures would be entered into it.
Systematic:
It is a system in which entries are done for consumer checks.
Systematic is a type of system in which does not have any Graphical User
Interface. It is simply a blank page, where you can enter specific codes and
amounts. The blinking cursor can be moved using arrow keys or tab.
In it we assign different numbers for specific batches (natures of checks),
and then enter them.
For example, the batch assigned in Citibank for DD, MC is 4912, now if making
entries of that batch in systematic, we will enter the code dein 4912
dein; It is a code that is used for making entries into systematic
After entering the batch we will use special codes which would be like
I Account # Amount Code D/C Check #
I is for individual, if we are making consumer entries

Account # In it account number of the check is written
Amount The amount of check is written here
Code specific code is written, which for example here would be 8888
D/C D is for making debit entries, and C is for making Credit entries.
Either use D or C.
Check # here the check # of the check is written

Now after the entries are done, to check whether there are any errors in making
entries or not, we will hit PAUSE and enter the code dech or deche
dech; It is a code that is to check and correct if there are any known mistakes.
For example, if we know that we made a mistake of entry number 7, then we will
use this code and correct that mistake
deche; It is a code that is used to check and correct any unknown mistakes, for
example, after making entries, to check if one made any mistake or not, we will
use this code.
Now there could be a number of errors, these errors are assigned specific
numbers to represent them.
Some of these numbers, along with their errors are written below:
24 means check is O.D (Over Draft)
12 means account is closed
15 means account is closed
115 means wrong amount is entered
112 means wrong check # is entered
177 means that it is a systematic error, and has to be corrected manually for
every entry
Now if there aren’t any entries in dech or deche it means that all entries are ok.
After all entries are completed and their errors are checked and corrected, we will
make a handshake entry.
A handshake entry would be;
f Account # Amount Code D Check #
2130 9200
Total # of seq. DDMC in clg
F here represents finance, it is done for total amount
Account # for handshake entry is 2930051000

Code for Debit is 0061
Code for Credit is 0062
and at the bottom of this line, 2130 represents Lahore code and 9200 represents
Pakistan code.
The last line contains a statement or narration.
If any DDMC is returned then we will make its entry in the end
It would be similar to handshake entry, except the account number would be
different;
f Account # Amount Code D Check #
2130 9200
RTD CHK (# of check)

b. GIS DEPARTMENT
A number of operations are performed in GIS (general internal services)

department; they are discussed one by one.
Deposit Slips:
First separate deposit slips on basis of account number.
Global Consumer:
In GCG slips are sorted in different categories, these categories are
discussed one by one.
 Current Account:
If in (GCG) Account # starts with 0,1,2,3 or 4, then it is
a current account.
 Saving Account:
If in (GCG) Account # starts with 5, 6 or 9, then it is saving
account.
 Sundering Account:
If in (GCG) Account # starts with 15 or 22 then it is Sundering
account. Sundering account is an account of the bank. We enter amount in
that account and then transfer amount from that account to consumer
account.
Like in clearing, we enter debit amounts in Systematic and in the end we credit
the amount from the bank account whose procedure is written in the Clearing
Department paragraph.

Global Finance:
In GF checks are sorted in different categories, these categories
are discussed one by one.
 Current Account:
In Corporate checks if the account number is less than 5 then it is
current account.
 Saving Account:
In Corporate checks if the account number 5 then it is saving
account.
Also note that account numbers starting with the number above 5 for e.g. 6, 7
etc. will not be included in corporate checks (GF) but in consumer checks (GCG).
Even then if we have a doubt about the check, whether it is GC or GF,
then we will check the name of check. That will definitely solve the problem.
Storing:
After Checks and slips are sorted i.e. into current and saving account, we
will sandwich those checks into cards, on these cards date and type of checks
are written. After every type of check is sorted into cards, we take those sorted
checks, sandwiched into cards into the locker room. In locker room we maintain
record for 1 year, after which records are kept electronically. To store data
electronically Citibank has made a contract with Data Technologies.
Rendition:
Another thing that we do in this department is called Rendition. It is done
at the end of the month. It is sorting of checks first on basis of Cities, then further
into companies, finally into different account of companies.

For example companies like Coca Cola, Nishat Mills, Mobilink has more
than one account. Then after all checks are sorted, we receive Monthly
Statement of every account of GF, this monthly statement tells general things
like number of checks etc. we band those sorted checks with their respective
statements and then put them into different envelops and send them to their
respective companies.
Here a thing to remember is that Rendition is done only for GF that is
corporate checks. We do not do Rendition for consumer checks and save it
ourselves.
Pouch:
Also there are two boxes named Al-Falah and Pouch. Pouch is a box in
which mails that we send to other cities are placed, for example mail to Karachi,
Gujranwala, Faisalabad, Islamabad etc.
Other Box there, is named Al-Falah, now that does not mean that mails in
it goes to the Al-Falah bank but, since the main branch of Citibank is in Al-Falah
building so if we have to send important documents to any other branch of
Citibank in Lahore, we send it to that building, who send it to the relevant
branches afterwards.
Mail & Cable:

Another thing that is done here is receiving mails from courier like DHL
from other countries and entering it in the register called DHL. We enter the AWB
(air way bill), LC (Letter of credit) # and amount of the check.
Mail & cable check from other cities are also received from courier like
OCS, TCS etc. Here we enter these into a register named Mail and Cable. First
TCS # is written, and then OC number, branch name with city, check number and
at the end Amount is written.

Purchasing:
Now about the purchasing, in that we receive list of inventory to purchase
from all braches in Lahore. Normally those list are provided in the hard copy, we
convert that list into soft form and also arrange them, removing discrepancies if
there any.
Normally a list is authorized only for Rs 10,000 and if inventory exceeds that
amount, a separate inventory sheet of amount that exceeds is made.
Two times a month Vendors are called and the requests are fulfilled. However if
the matter is of urgent basis then the specific list could be forwarded any day of
the month.
Other maintenance:
There are other services that are done here for example;
• Test word
• Pool Car Maintenance
• Bill Payment
In Test word, foreign currencies are scanned and then their print is sent to CMG
for further processing.
In Pool Car Maintenance, cars that are owned by bank or their employees are
maintained. For example, their fueling is done by the bank as well as other
monthly maintenance.
In Bill Payment, phone bills of all branches in north are paid. And any complaints
against that are taken care of.

c. TRADE
Firms engaged in international trade have to trust someone they may have never
seen, who lives in a different country, who speaks a different language, who
abides by (or does not abide by) a different legal system, and who could be very
difficult to track down if he or she defaults on an obligation.
Consider a US firm Benninger ag exporting to a Pakistani firm Azgard-9.
The U.S. business man might be concerned that if he ships the products to
Pakistan before he receives payment from Pakistani firm, they might take
delivery of products and not pay him. Conversely the Pakistani importer might
worry that if she pays for the products before they are shipped, the U.S. firm
might keep the money and never ship the products or might ship defective
products. Neither party to the exchange completely trusts each other. This lack of
trust is due to distance between two parties (in space, language and culture).
Due to lack of trust between the two parties, each has his own preference
as to how transactions should be made. To make sure he is paid, the manager of
us firm would prefer the Pakistani distributor to pay for the products before he
ships them. Alternatively, the Pakistani firm would prefer not to pay them before
the shipment arrives. Thus each party has a different set of preference. Unless
there is some way of trust between the two parties, the transaction may never
occur.
The problem is solved by using a third party trusted by both (normally a reputable
bank) to act as an intermediary. What happens in such a case is summarized as
follows:
First the Pakistani importer obtains the bank’s promise to pay on her
behalf, knowing the U.S. exporter will trust the bank. This promise is known as
letter of credit. Having seen the letter of credit, the U.S. exporter now ships the
products to Pakistan. Title to the products is given to the bank in the form of a
document called a bill of lading. In return, the U.S. exporter tells the bank to pay
for the products, which the bank does. The documents for requesting this

payment is referred to as draft. The bank having paid for the products now
passes the title to the Pakistani importer, whom the bank trusts. At that time or
later, depending on their agreement, the importer pays the bank.
Letter of credit:
A letter of credit, abbreviated as L/C, stands at the centre of
international commercial transactions. Issued by a bank at the request of an
importer, the letter of credit states that the bank will pay a specified sum of
money to a beneficiary, normally the exporter, on presentation of particular,
specified documents.
Consider again the example of U.S. exporter and Pakistani Importer. The
Pakistani importer applies to her local bank, say, Citibank, for the issuance of a
letter of credit. Here the first step is that the importer fills the form which is given
to him by authorized dealer for imports.
Different conditions are written here, for example;
• Full name and address of beneficiary and the applicant

• Bill amount
• Days from payment’s due date
• Beneficiary’s country name
• Insurance policy
• Date of issuance
• Date after which it is not valid
In addition other requirements are filled here which are compulsory. After this
many terms and conditions are printed on other pages of the form. At the end of
the form there are places where Authorized Signatures are compulsory.
Citibank then undertakes a credit check of the importer. If Citibank is satisfied
with the credit worthiness, it will issue a letter of credit, however, Citibank might

require some cash deposit or some other form that gives guarantee of cash of
equivalent amount. In addition, Citibank will charge the importer a fee of this
service. Typically this amount to between 0.5% and 2% of the value of the letter
of credit, depending on the importer’s credit worthiness and the size of the
transaction (as a rule, the larger the transaction, the lower the percentage).
Assume Citibank is satisfied with the Pakistani Importer credit worthiness
and agrees to issue a letter of credit. The letter states that Citibank will pay the
U.S. exporters of the merchandise as long as it is shipped in accordance with
specified instructions and conditions. At this point, the letter of credit becomes a
financial contract between Citibank and the US exporters. Citibank then sends
the letter of credit to the US exporter’s bank, say, the bank of New York. The
bank of New York tells the exporter that it has received the letter of credit and
that he can ship the merchandise. After the exporter has shipped the
merchandise, he draws a draft against Citibank in accordance with the terms of
letter of credit, attaches the required documents and presents the draft to its own
bank, the bank of New York, for payment. The bank of New York then forwards
the letter of credit and associated documents to Citibank. If all of the terms and
conditions contained in the letter of credit have been compiled with, Citibank will
honor draft and will send payment to the bank of New York. When the bank of
New York receives the fund, it will pay the US exporter.
As for Citibank, once it has transferred the funds to the bank of New York,
it will collect payment from Pakistan importer. Alternatively, Citibank may allow
the importer sometime to resell the merchandise before requiring payment. This
is not usual, particularly where importer is a distributor and not the final consumer
of the merchandise, since it helps the importer’s cash flow. Citibank will treat
such an extension of the payment period as a loan to the importer and will
charge appropriate rate of interest.
The great advantage of the system is that both the Pakistani importer and
the US exporter are likely to trust reputable banks, even if the don’t trust each
other. Once the US exporter has seen a letter of credit, he knows that he is

guaranteed payment and will ship the merchandise. Also, an exporter may find
that having a letter of credit will facilitate obtaining pre-export financing, for
example, having seen the letter of credit, the bank of New York might be willing to
lend the exporter funds to process and prepare the merchandise for shipping to
Pakistan. This loan may not have to be repaid until the exporter has received his
payment for the merchandise. As for the Pakistani importer, he does not have to
pay for the merchandise until the documents have arrived and unless all
conditions stated in the letter of credit have been satisfied. The draw for the
importer is the fee he must pay Citibank for the letter of credit. In addition, since
the letter of credit is financial liability against him, it may reduce his ability to
borrow funds for other purposes.
Draft:
A draft, sometimes refer to as a bill of exchange, it is the instrument
normally used in international commerce to effect payment. A draft is simply an
order written by an exporter instructing an importer, or an importer’s agent, to pay
a specified amount of money at a specified time. In the example of the US
exporter and the Pakistani importer, the exporter writes a draft that instructs
Citibank, the Pakistani importer’s agent, to pay for the merchandise shipped to
Pakistan. The person or business initiating the draft is known as the maker (in
this case the US exporter). The party to whom the draft is presented is known as
the drawee (in this case Citibank).
International practice is to use draft to settle trade transactions. This differs
from domestic practice in which a seller usually ships merchandise on an open
account, followed by a commercial invoice that specifies the amount due and the
terms of payment. In domestic transactions, the buyer can often obtain
possessions of the merchandise without signing a formal document
acknowledging his or her obligation to pay. In contrast, due to the lack of trust in
international transactions payment or a formal promise to pay is required before
the buyer can obtain the merchandise.

Drafts fall into two categories, sight draft and time draft. A sight draft is
payable on presentation to the drawee. A time draft allows for a delay in
payment (normally 30, 60, 90, or 120 days). It is presented to the drawee, which
signifies acceptance of it by writing or by stamping a notice acceptance on its
face. Once accepted, the time draft becomes a promise to pay by the accepting
party. When a time draft is drawn on and accepted by a bank it is called banker’s
acceptance. When it is drawn on and accepted by a business firm, it is called a
trade acceptance.
Time drafts are negotiable instruments; that is, once a draft is stamped
within acceptance, the maker can sell the draft to an investor at a discount at its
face value. Imagine the agreement between the US exporter and the Pakistani
importer calls for the exporter to present Citibank (through the bank of New York)
with the time draft requiring payment 120 days after presentation. Citibank
stamps the time draft with an acceptance. Suppose the time draft is for $100,000.
The exporter can either hold on to the accepted time draft and receive
$100,000 in 120 days or he can sell it to any investor, say, the bank of new York,
for a discount form of the face value. If the prevailing discount rate is 7%, the
exporter could receive 97000 by selling it immediately (7 percent per year
discount rate for 120 days for 100000 equals 2300 and 100000 – 2300 = 97000).
The bank of New York would then collect the full $100000 from Citibank in 120
days. The exporter might sell the accepted time draft immediately if he needed
the funds to finance merchandise.
Bill of lading:
The third key document for financing international trade is the bill of
lading. The bill of lading is issued to the exporter by the common carrier
transporting the merchandise. It serves three purposes; it is a receipt, a contract,
and a document of title. As a receipt, the bill of lading indicates that the carrier
has received the merchandise described on the face of the documents. As a
contract, it specifies that the carrier is obligated to provide a transportation

service in return for a certain charge. As a document of title, it can be used to
obtain payment or written promise of payment before the merchandise is
released to the importer. The bill of lading can also act as collateral against which
funds may be advanced to the exporter by its local bank before or during
shipment and before and during final payment by the importer.
A typical international trade transaction:

Now that we have reviewed the elements of an international trade transaction, let
us see how the process works in a typical case of Pakistani importer and US
exporter. The steps involved in it are written as follows:
1. The Pakistani importer places an order with the US exporter and asks the
American if he would be willing to ship under a letter of credit.
2. The US exporter agrees to ship under a letter of credit and specifies
relevant information such as prices and delivery terms.
3. The Pakistani importer applies to Citibank for a letter of credit to be issue
in favor of the US exporter for the merchandise the importer wishes to buy.
4. Citibank issues a letter of credit in Pakistani importer’s favor and send it to
the Bank on New York.
5. The bank of New York advises the exporter of the opening of letter of
credit in his favor.
6. The US exporter ships the goods to the Pakistani importer on a common
carrier. An official of the carrier gives the exporter a bill of lading.
7. The US exporter presents a 90 days time draft drawn on Citibank in
accordance with its letter of credit and bill of lading to the bank of New
York. The exporter endorses the bill of lading so title to the goods is
transferred to the bank of New York.
8. The bank of New York sends the draft and bill of lading to Citibank.
Citibank accepts the draft, taking possession of the documents, and
promising to pay the now-accepted draft in 90 days.

9. Citibank return the accepted draft to the bank of New York.
10. The bank of New York tells the US exporter that it has received the
accepted bank draft, which is payable in 90 days.
11. The exporter sells the draft to the Bank of New York at a discount from its
face value and receives the discounted cash value of the draft in return.
12. Citibank notifies the Pakistani importer of the arrival of the documents. He
agrees to pay Citibank in 90 days. Citibank releases the documents so the
importer can take possession of the shipment.
13. In 90 days, Citibank receives the importer’s payment, so it has funds to
pay the maturing draft.
14. In 90 days, the holder of the matured acceptance (bank of New York)
presents it to Citibank for payment. The Citibank pays.
List of documents
A typical transaction includes involvement of following documents
• Contract

• E-form
• Goods declaration letter
• Shipping documents
• Commercial invoice
• Collection and discount documents (receiving)
• Bill of exchange (not deferred payments)
• Bill of lading
• Collection payment letter (maturity date)
• Export process realization form (EPRC)
• Remittance letter (against L/C)
• Collection letter (against contract)
• Customer request
• Letter of credit
• Certificate of origin
• Fumigation certificate
Customer request
In it there is detail of documents received, for example
• Commercial invoice
• Packing list
• Bill of Lading
• Certificate of origin
• Fumigation certificate
• Shipping bill
Also an instruction is given here like, Instruct drawee bank to release shipping
documents to importer against written undertaking to pay at maturity i.e. 90 days
from Bill of lading.

Goods Declaration
It includes every thing from name to stamp, for example
• Exporter name / address
• Importer name / address
• Bank code
• National tax number
• Passport Number
• Transaction type
• Currency type
• Country of destination
• Exchange rate
• Payment / Delivery terms
• Vessel (By sea)
• Documents attached
• B/L # and date
• Place of delivery
• General description of goods
• Insurance
• Unit – Total – Customer Value
• Freight / Landing charges
• Assessed value
• Quantity (Unit type, number of units)
• Bank stamp
Export:

Different trade products offered for exporters by Citibank are:
Bill Negotiation
Bill / document negotiation is for export letters of credit and / or firm contracts.
Negotiation means to give value to the beneficiary for drafts (drawn at sight) and
/ or documents, as distinct from merely examining & forwarding them to the
issuing bank.
A bank, which has not confirmed the credit, negotiates with recourse to the
beneficiary in the event of non-acceptance / payment by the issuing bank, a
confirming bank negotiates without such recourse.
Bill Discounting
Discounting is for usance bills called under LC's. It must contain a bill of
exchange (Demand for payment, amount must be same as the commercial
invoice amount) and the bill must be accepted by the drawee i.e. the issuing
bank. The bill is normally re-discountable locally to a discount house or another
bank.
Post Shipment Finance

Post shipment finance is a variation of a demand loan with a loan repayment
linked to the maturity of the bills drawn against LC' or contract. Post shipment
finance is offered against sight as well as usance bills.
Export Refinance
Export Refinance is a scheme under State Bank of Pakistan (SBP) to promote
Pakistani Exports. Under this scheme, an exporter may avail finance from any
scheduled bank at a concessional rate. Export Refinance is available to the
exporter under two schemes Part I or Part II.
In Part I an exporter may avail finance against individual usance L/Cs or
contracts after satisfying the terms and conditions of the scheme, this scheme

are available either on a pre-shipment or post-shipment basis for the exporter.
Under Part II an exporter can avail finance up to a percentage (determined by
SBP) of exports performed in the previous financial year.
Import
Different trade products offered for importer by Citibank are;
Issuance of import LC's

It is a firm undertaking issued by Citibank on behalf of its customer / importer in
favor of the exporter / seller outside the country. The issuing bank is responsible
for the payments to the buyer, provided the terms of the LC's are fulfilled.
Inward Collection
It is an option using which a Citibank Pakistan customer / importer can import
without opening a letter of credit. There are two types of collections
D / A: Documents against acceptance
D / P: Documents against payment
It is a less costly and more efficient method of importing goods than through
opening a LC.
Guarantee

A guarantee is issued by Citibank Pakistan (Guarantor) on behalf and on request
of customer (applicant) in favor of a third party (beneficiary), for the fulfillment of
certain defined obligations by the applicant.
Usually Citibank issues the following types of guarantees:
• Tender Guarantees (Bid bonds)
• Performance Guarantees:
• Advance Payment Guarantees
• Financial Guarantees
• Open ended Guarantees
• Back-to-Back Guarantees

d. Financial Institutes Department
Purpose of the Department:

Several FI customers (commercial, developmental, and Non-developmental
institution/banks ) maintain U.S.D Demand Deposit Accounts (DDA) with Citibank
,New York, they use for carrying out their USD denominated inter-bank and
commercial transactions. They also use Citibank N.A. New York's trade and
finance services for their documentary letter of credit and guarantees business.
In the normal course of business, customers would interact directly with Citibank
N.A. New York transacting their business. However, given the geographical
spread of customers 'branches and the historical inefficient communication
channels available to them. it is considered more efficient and cost effective(both
for customers and for bank) to maintain an operations establishment in Pakistan
operated from Citibank , Karachi due to close proximity with Head Offices of FI's
major customers, To act as a one-point contact and conduit between the
customers and Citibank N.A. New York for certain specific transactions and
activities.
FI Karachi acts as this conduit and provides services to FI customers which
facilitate the flow of information and instructions between the customers and
Citibank N.A. New York and thereby support our correspondent banking
relationship with them.
FI Customers
Main customers of FI department are given below:
• Allied Bank Limited
• Askari Bank Limited
• MCB Bank Limited
• Soneri Bank Limited
• Faysal Bank limited

• The Bank Of Punjab
• Bank Alfalah Limited
Competitors of CITIBANK regarding FI department

• Mashriq Bank
• Standard Chartered Bank
• National Bank of Pakistan
• American Bank
Marketing Activities
To obtain more and more business FI department believe on one of IMC tools
that PR. FI designated person goes in branches and meet with trade people. The
following tools are used for the marketing of the products of FI department.
• Visiting cards
• Personnel visits
• Iftar party
• Seminars
• Giveaways
FI OPERATIONS
Services of the FI Marketing Department
1. Export Bills Collection Services. (EBCS)
2. Global Cash Letter Services. (GCLS)
3. Money Transfer Service. (MTS)
4. Letter of Credit Reimbursement Authority. (LCRA)
5. F.I.T.S. L/C Reimbursement Authority. (FITS)
6. Statement Rendition (CCM)
7. Customer Support Service

Work Activities or Job Description
I sat with Ali farid who was Financial Institutes operation Support Officer in
Financial Institution Marketing Department on 01, June 2008 which is a
department organized for corresponding relationship with Financial Institutions
customers (Commercial Banks). This department is working under the umbrella
of corporate branch of Citibank.
Things that I have witnessed and learnt during my session are as follows;
Making reports of daily activities

Develop the daily reports of total transactions of payments and receiving’s
relevant to every bank by using Citibank ERP “Citidirect”.
• Emailing of daily statements
• Calling and faxing
• Dispatching the detail advices
After preparing the statement of payment against the imports and exports we
send them to our entire customer by emailing them so that they could update
their records and come to know that the payment has been remitted to final
beneficiary bank and final beneficiary.
Besides emailing we fax and give calls to few of our customer in order to develop
long lasting and to strengthen relationships through these extra services.
Moreover on daily basis we print detail advices of each transaction for few of our
customers and dispatch the same on their mailing address. These detail advices
contains all the information regarding the transaction.
Investigating activities
The purpose of the FI department is to present Citibank as correspondent bank
for the smooth flow of payments to final beneficiary, if we find any discrepancy in

this process then we investigate the issue accordingly. For investigating any
issue we have to generate a enquiry and for the generation of ref. we send it to
our FTN error team located in Dublin which forwards the same to our investing
team e.g. “Coe” located in India along with the allocated ref. number which is
always unique, now the relevant investigating team contact with the beneficiary
bank and solve the facing problem. A complete file for each issue is maintained
and saved in the folder of relevant bank file.
MOST FREQUENT ENQURIES

• Beneficiary non receipt of fund
• Beneficiary non receipt of LC or Documents
• Calculation of confirmation charges
• Refund of fee charges.
A sample inquiry is given below:
Hi
Credit confirmation has been already advised to customer as on 14 jul08
Kind Regards,
Ravi Shetty
Global Fund Transfer Investigations
Hi,
Enclosed is the copy of the credit confirmation rec from the bene bank
The same qas communicated to coe
Thanks and Best Regards
Pratibha Bangera Citiservice UAE
Pratibha/Coe,

Did we receive credit confirmation.
Rgds,
Ali Farid
FI
Dear Pratibha,
Can you confirm the credit to the beneficiary as we have relayed all the
amendment to Chase bank (Correspondent bank for DUIBAEAD) for the
appended.
Kind Regards,
Hrishikesh
COE Investigations – USD Investigations
Priyadarshi Mukherjee,
Kindly also obtain credit confirmation.
Regards,
Ali Farid
FI
Ali,
The amending details have been forwarded to the bene bank and we have
received the following message from them :
Thanks & Regards,
Priyadarshi Mukherjee
COE Mumbai – USD Investigations
Coe,
Pl. confirm that the funds have been credited to the final beneficiary as per
amending instructions against CITI Bank Ref: CITI0215-30JUN08, because the
final beneficiary is still claiming non receipt of funds.

Regards,
Ali Farid
FI
3-To maintain the level of business

visit is scheduled on daily basis to Trade departments of different banks in order
to get the business from them and report accordingly to Pakistan FI Sales head.
The business is done on agreement basis between the client banks and Citibank
Pakistan on the behalf of the Citibank New York.
4-Business Volume Reports

On monthly basis we make business volume report which give us a measure that
how much business we getting from each branch of relevant bank and if we are
getting some less volume from a particular brand then we push them for maintain
the level of the business.
5-Collection of Export Bills

Collecting the export bills and sending them to head office for further proceeding
Karachi
Recommendations for FI Department

FI operations have a lot of concern with the customer service which mean if we
providing good customer services then we are getting more and more business
from our clients. To provide the best customer services it is necessary the
operations of FI department should be directly from Lahore corporate branch
instead of head office at Karachi.

9) Conclusion:
I will conclude my Eight weeks of internship report at Citibank N.A. Lahore with
the following paragraph:
At Citibank, people believe that that hardworking to promote environmental and
social sustainability both from risk and an opportunity perspective is good
business practice. They take maximum actions to reduce environmental risk and
its impacts.
Employees of bank are very efficient. Even though the banking hours are from
9:00 to 6:00, yet they stay as long as they can to complete their tasks of day and
try not to lend it to the next working day. The best thing about the corporate
branch is its environment, it is not the typical banking environment where you just
have to stick your nose in your work and be formal the whole time. Citibank has a
very flexible working environment. There is no necessity of dress code like
wearing neck ties and be formal the whole time. Employees chat, joke, even play
games and listen to songs in their late flexible hours. Hence we can say that
Citibank has an environment in which employees realize their maximum
potential.
Most importantly every thing is not contributed by the employees solely; Citibank
is committed to rewarding hardworking professionals in financial services and to
reward people based on performance standards which are aligned with their
business objectives and long term goals. The various training and development
tools at Citibank assist their employees to be fully effective in their jobs and long
term careers. A training task is sent to the employees through email; it usually is
a reading article after which a number of questions are to be answered. Work at
Citibank is done both manually and electronically

I found my internship at Citibank a very healthy experience, for the first time I felt
professional in my life. Working experience at Citibank was simultaneously joyful,
tough, full of knowledge and at the end of the day one cant stop feeling the sense
of achievement. Employees there were very cooperative; they took work from me
whenever necessary in the mean time teaching me all that they could. We used
to have lunch together daily, in the end I can’t help building an everlasting
relation with all of them.
Recommendation:
During my internship period I noticed a few things which I would like to point out
here;
• Most employees are unhappy with their pays; hence their contract and pay
scale should be revised.
• There should be a separate room with specially designed boxes for doing
rendition, since it takes a lot of unnecessary time.
• At bank employees have to do a 15 days of mandatory leave once in six
months because heads want to check if they are on default, such leaves
must be planned with the employee about a week before, and proper
settlement should be done on this issue with employee
• Inward collection is received twice a day; in morning and evening. It
should be reduced to one because even if employees complete their work
in the early hours, they have to wait for the second collection.
• There should be a proper backup of every employee’s work so that he can
take at least one leave in a week, which will help in stress reduction.


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2) Introduction

a. Introduction of Citigroup Inc.

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY JINNAH CAMPUS LAHORE 1

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY JINNAH CAMPUS LAHORE 2

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY JINNAH CAMPUS LAHORE 3

1998 Citibank Logo

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY JINNAH CAMPUS LAHORE 4

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY JINNAH CAMPUS LAHORE 5

d. History of Citibank in Pakistan

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY JINNAH CAMPUS LAHORE 6

g. Core values of the Citibank

h. Working environment of Citibank

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY JINNAH CAMPUS LAHORE 7

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY JINNAH CAMPUS LAHORE 8

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY JINNAH CAMPUS LAHORE 9

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY JINNAH CAMPUS LAHORE 10

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY JINNAH CAMPUS LAHORE 11

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY JINNAH CAMPUS LAHORE 12

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY JINNAH CAMPUS LAHORE 13

Senior Administrator Assistant (SAA)

This information is got from Kamran Zaidi SAA

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY JINNAH CAMPUS LAHORE 14

d) Divisions of the Citigroup Inc.

A. Global Consumer Group

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY JINNAH CAMPUS LAHORE 15

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY JINNAH CAMPUS LAHORE 16

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY JINNAH CAMPUS LAHORE 17

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY JINNAH CAMPUS LAHORE 18

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY JINNAH CAMPUS LAHORE 19

Three main divisions of Banking at Citibank Pakistan

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY JINNAH CAMPUS LAHORE 20

II. Commercial banking

III. Corporate Banking

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY JINNAH CAMPUS LAHORE 21

Products or services that Citibank provides are as follows:

Citibank Debit Card:

Citibank Gold Credit Card

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY JINNAH CAMPUS LAHORE 22

Citi Mobilink Credit Card

Also enjoy usage services at following outlets..

Enjoy free pizza & Soups

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY JINNAH CAMPUS LAHORE 23

Enjoy 10% Discount

15% Discount for Gold Cardmember

15% Discount for Gold Cardmember

Citibank Caltex Credit Card

Citibank clear card:

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY JINNAH CAMPUS LAHORE 24

To enter the draw:

Citibank Shaheen Affinity Credit Card:

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY JINNAH CAMPUS LAHORE 25

Citibank World Privileges:

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY JINNAH CAMPUS LAHORE 26

Credit Shield Plus

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY JINNAH CAMPUS LAHORE 27

Secure Wallet Plan

Corporate Banking products

1. Short Term Financing:

2. Advance against Merchandise ("AM") Facility

3. Loans against Merchandise