National Bank of Pakistan

The Process of
Deposit Mobilization

Prepared By: Muhammad Yasir

 The Process of Deposit Mobilization

What is Deposit?
Deposit is a claim of customer over the bank on
his account.

How Banks Mobilize Deposit?

Making Finances
Investing in various financial markets
 The Process of Deposit Mobilization

Purpose of Bank Financings/ Lendings:

Positive Return on Loan
Provision of Working Capital
Shifting of funds into Productive Hands
Strengthening Industrializations
Backbone of National Economy

Lending Products:
Running Finance
Cash Finance
Demand Finance
Consumer Finance
PAD
 The Process of Deposit Mobilization

Investment in Financial Markets:

The investment functions are usually
performed by Treasury Office of the bank.
Treasury invest deposit for:

Ensuring optimum utilization of

available resources.

Rising additional resources required for

meeting credit demands.

Managing market and liquidity risks.

 The Process of Deposit Mobilization

Investment Markets

Foreign Exchange
Money Market Capital Market
Market

1. T.Bills and Govt. Securities 1. Equities e.g. shares and 1. Spot Transactions
2. Bonds of Provincial Govt. 2. Mutual Funds 2. TOM Transactions
3. Defense Saving Certificates 3. Bonds 3. Outright Transactions
4. Mutual Funds etc. 4. Debt Market 4. Swap Transactions
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